LIFE IS
BEAUTIFUL.
LIFE IS
DIGITAL.
INTEGRATED
ANNUAL REPORT
2016-17
SIMPLE
SMART
SECURE
LIFE IS
BEAUTIFUL.
LIFE IS
DIGITAL.
“For those who dare to
dream, there is a whole
world to win.”
Padma Vibhushan
Shri Dhirubhai H. Ambani
Founder Chairman
THEN - TRIGGERING A TELECOM REVOLUTION
RIL's Founder Chairman, Dhirubhai Ambani first dreamt of
transforming India through the power of communication.
He devised a strategy through which phone calls in
India would become cheaper than postcards. His vision
transformed the telecom landscape of India in the 2000s, with
free incoming calls, lower tariffs and affordable handsets.
ABOUT THIS REPORT
The Reliance Integrated Annual Report has been
prepared in alignment with the Framework
laid down by
Integrated
Reporting Council. It outlines RIL's commitment
to stakeholder value creation and defines the
actions it takes and outcome it achieved for its
stakeholders.
International
the
NOW - CATALYSING INDIA'S DIGITAL ADOPTION
Jio is pioneering a data revolution in the Indian
communications space, with next generation
communications and connectivity technologies. It is
transforming Indian telecom into true converged services
with high speed internet, free one India voice and wide array
of infotainment options at an affordable cost to every Indian.
OTHER REPORTS AND
INFORMATION:
• Corporate sustainability
related information
www.ril.com/Sustainability/
CorporateSustainability.aspx
• Quarterly results and Analyst
Presentations
www.ril.com/InvestorRelations/
FinancialReporting.aspx
• Financial statements of
subsidiary companies
www.ril.com/InvestorRelations/
Downloads.aspx
Scan the QR Code on your
smart device to view the
Integrated Annual Report online
at www.ril.com/ar2016-17/index.html
Since inception, Reliance Industries Limited (Reliance/RIL) has grown by imagining
possibilities and creating an actionable blueprint to transform them into a reality.
It has made a difference to lives across India by being a responsible investor
supporting India’s growth story and boosting relevant sectors of national importance.
Pg 8
Letter to Shareholders
Today, Reliance’s portfolio ranges from hydrocarbons to new-age consumer
businesses such as digital services, retail and Media & Entertainment.
It demonstrates the pioneering effort that Reliance has contributed for the Indian
economy to achieve unprecedented growth.
As a New India emerges, Reliance is
once again at the forefront of ushering
in a Digital Life for India and facilitating
progress. Reliance’s digital services foray
has revolutionised the Indian telecom and
data consumption landscape. With one of
the fastest customer acquisitions, largest
migration from free to paid services and
the highest mobile data consumption in
the world, this nascent initiative already has
had a profound and transformative impact.
This digital venture is being built to address
the entire value chain across the digital
services domain with smart applications
to make life simple, beautiful and secure. It
unlocks multiple possibilities in the world
of education, healthcare, infotainment,
communication, governance, financial
inclusion and entrepreneurship, on the
back of a high-speed, connected intelligent
network.
With a strong belief, consistent and
unwavering faith in India’s immense growth
potential, Reliance is committed to New
India’s dreams and aspirations. Reliance’s
initiative to catapult India into the global
digital leadership league will have a
sustainable positive socio-economic impact.
Along with growing its own business,
Reliance has been actively supporting young
entrepreneurs in realising their dreams. RIL’s
GenNextHub platform catalyses a unique
start-up ecosystem, which rests on the tripod
of talent, technology and trust.
Reliance envisions a growth path for India
that is characterised by sustainable and
inclusive development enabled by digital
technologies. In the process, it continues to
create superior value for all stakeholders and
make a contribution to the building of a New
India.
Pg 24
Business Model - Value Creation
Pg 26
Review of Operations
Pg 38
Reliance Foundation
INSIDE THIS REPORT
CORPORATE OVERVIEW
2 Reliance at a Glance
4 RIL's 40-Year Journey
6 Awards and Recognition
7 Key Performance Indicators
8 Letter to Shareholders
12 Board of Directors
14 Delivering a Digital India
16 Touching Lives Every Day
18 Creating Newer Experiences
20 Nurturing Digital Entrepreneurship
22 Business Model - Integrated Approach
24 Business Model - Value Creation
26 Review of Operations
38 Reliance Foundation
40 People and Innovation
41 Company Information
42 Major Products and Brands
54 Product Flow Chart
56 Financial Highlights
MANAGEMENT REVIEW
58 Management’s Discussion and Analysis
164 Report on Corporate Social Responsibility
GOVERNANCE
180 Business Responsibility Report
194 Independent Reasonable Assurance on
Sustainability Disclosures
196 Corporate Governance Report
224 Board's Report
FINANCIAL STATEMENTS
Standalone
279 Independent Auditors’ Report on
Financial Statements
284 Balance Sheet
285 Statement of Profit and Loss
286 Statement of Changes in Equity
288 Cash Flow Statement
290 Notes to the Financial Statements
Consolidated
348
Independent Auditors’ Report on
Consolidated Financial Statements
352 Consolidated Balance Sheet
353
Consolidated Statement
of Profit and Loss
354 Consolidated Statement of Changes
in Equity
356 Consolidated Cash Flow Statement
358
Notes to the Consolidated Financial
Statements
414 Salient Features of Financial
Statements of Subsidiary/Associates/
Joint Ventures
SHAREHOLDER
INFORMATION
420 Shareholders’ Referencer
434 Notice of Annual General Meeting
Attendance Slip and Proxy Form
Members’ Feedback Form 2016-17
2
FINANCIAL STATEMENTS
RELIANCE AT A GLANCE
RIL is India’s largest private sector company on key financial
parameters. It has a strong presence in the integrated energy
value chain and pre-eminent position in retail and digital services
in India. RIL’s growth is strongly embedded in its values of
integrity, safety and excellence. RIL is committed to sustainable
growth through creating value for the nation, enhancing quality
of life across the entire socio-economic spectrum. It also
endorses inclusive development of all the stakeholders including
society at large.
ENERGY AND MATERIALS BUSINESSES
Refining & Marketing
Petrochemicals
Oil and Gas Exploration
Revenue
`2,50,833
EBIT
`25,056
Revenue
`92,472
EBIT
`12,990
Revenue
`5,191
EBIT
(`1,584)
Refineries at Jamnagar process a wide
variety of crude oils and produce a
range of petroleum products including
transportation fuels for exports as well
as supply in the Indian market.
Owns and operates one of the most
integrated petrochemicals facilities
globally, with a portfolio comprising
polymers, polyesters, fiber intermediates,
aromatics and elastomers.
Upstream portfolio in India includes
operations in conventional on-land,
shallow water and deep-water acreages,
as well as unconventional Coal Bed
Methane block. It also has a presence in
Shale Gas business in USA.
US$ 11.0/BBL
Gross refining margin, 8 year high
1,221
Fuel Outlets
2nd LARGEST
Paraxylene producer globally
4th LARGEST
PTA producer globally
Commencement of commercial
production from CBM
block in Sohagpur
Environment
People
1,40,483
Reliance Employees
CSR
`674 crore
CSR Expenditure
OVER 12 LAKH
Saplings planted
45.5%
water recycled
OVER 76 LAKH MAN-HOURS
Training imparted to Reliance Employees
in FY 2016-17
93%
Employee Engagement Score
12 MILLION
Reliance Foundation touched the lives
of 12 million Indians across 12,500+
villages and 74 urban locations
OVER 1,00,000
Underprivileged children supported
through Education for All initiative
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Reliance at a Glance
3
Value added Statement for FY 2016-17*
Value added is defined as the value created by the activities of a business and its employees
Stakeholders
Contribution to National Exchequer
Reinvested in the Group to maintain and develop operations
Providers of Debt
Employee Benefits
Providers of Equity Capital
Contribution to Society
TOTAL
` in crore
FY 2016-17
FY 2015-16
51,399
36,635
5,575
4,434
3,255**
659
43,117
32,879
4,864
4,262
3,095
652
101,957
88,869
*Standalone **Dividend recommended for FY 2016-17 is `3,916 crore, including `661 crore as dividend distribution tax
CONSUMER BUSINESSES
Retail
Digital Services
Revenue
`33,765
EBIT
`784
Reliance Retail has the distinction of
being the largest retailer in the country
and operates neighbourhood stores,
supermarkets, cash & carry stores,
specialty stores and online stores.
Subscribers
108.9Mn
Data Traffic
>1 bn GB/mth
Jio has built a world-class all-IP data
strong future proof network with
latest 4G LTE technology. It is the only
network from the ground up and
supporting Voice over LTE technology.
It is future ready and can be easily
upgraded to support even more data,
as technologies advance on to 5G, 6G
and beyond.
` in crore
Media &
Entertainment
Revenue
`1,491
EBIT
(`201)
One of India’s leading Media and
Entertainment (M&E) players, with a
presence across several businesses
including television broadcasting,
movie production and distribution,
digital content and commerce, print
magazines and allied media services.
OVER US$ 5 bn in REVENUE
India’s first retailer to cross this mark and
continues to grow at a rapid pace.
100 MILLION
Jio subscribers in 170 days
of launch
CNBC TV18 had 86%
market share during the
annual budget speech
Innovation
373
Patents Filed
Robust Balance Sheet
Reliance Management
System (RMS)
OVER `1,448 crore
Spent on R&D expenditure
51 START-UPS
graduated from GenNext Hub till date
INVESTED OVER `3,00,000
crore over last 3-4 years, while
maintaining investment grade credit
ratings from S&P and Moody's - higher
than sovereign rating
•
•
•
A platform of where, what and
how Reliance operates
Auto checks and balances
Enabler of exponential growth
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 4
Reliance Industries Limited
Life is Beautiful. Life is Digital.
RIL'S 40-YEAR JOURNEY
RELIANCE DNA
INDIA FOCUSSED
FIRST TO DELIVER
ON GLOBAL SCALE
ORGANIC GROWTH
FASTER EXECUTION
FOCUS ON
CUSTOMER VALUE
GAME CHANGING
INITIATIVES IN
NEW AREAS
MAJOR
MILESTONES
10
3
6,656
163
1977-1987
1987-1992
•
IPO – Introducing
equity culture in India
• Polyester and PTA at
Patalganga
• PX at Patalganga
• PE at Hazira
• 1st ever GDR issue by
an Indian corporate
Market Capitalisation
Profit After Tax
All figures in ` crore for year end except for 1977-1987 block
41, 989
3,279
1997-2002
• Cracker with Polymers
and Fiber Intermediates
at Hazira
• PET at Hazira
• World’s largest
grassroot refinery at
Jamnagar
• World’s largest PX and
PP plant at Jamnagar
14, 395
1,323
1992-1997
• Euro convertible
bond issue
• 1st Indian private sector
company to be rated
by S&P and Moody’s –
rating constrained by the
sovereign ceiling
• 1st corporate from Asia
to issue 50 and 100 years
bond in US debt market
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 5
4,28,909
29,901
Market Capitalisation CAGR
31.5%
Earnings CAGR
26.7%
2,44,757
19,717
2007-2012
2012-2017
• Foray into organised retail
• Acquired Recron Malaysia
•
Jamnagar refinery &
petrochemical complex – 2
• KG-D6 oil and gas production
• US Shale gas JVs
• Partnership with BP
• BWA spectrum acquisition
• Launched biggest ever
hydrocarbon capex program
•
Innovative financing –
perpetual bond, EXIM facilities
• BCG ranked RIL 2nd in the list of
world’s 10 biggest 'Sustainable
Value Creators'
• Acquired Network18
• Polyester expansion commissioned
(PFY, PET, PTA and PX)
• Elastomers (PBR,SBR) commissioned
• Ethane project commissioned
• Acquired spectrum in 800/1800
MHz band
• Launch of Jio, fastest to reach 100
million subscribers
• Commenced CBM production
• ROGC & Gasification mechanically
complete
•
Jamnagar SEZ refinery wins British
Safety Council's Globe of Honour
Award
• RIL recognised among top best
companies to work in India -
Business Today
1,98,905
12,075
2002-2007
• Acquired IPCL, India’s 2nd largest
petrochemical company
• Gas discovery in deep water block
KGD6
• 1st Indian company to feature in
Fortune Global 500 list
• State-of-the-art research and
technology centre at Patalganga
• 1st private sector company from
India to record a net profit of over
US$ 1 Billion
• 1st Asian company to be awarded
'International Refiner of the Year'
• PP and PTA expansion at Hazira
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 6
AWARDS AND RECOGNITION
LEADERSHIP
HUMAN RESOURCES
Received the Greentech
Gold award for best
Human Resources
Strategy 2016
Business Today
recognised Reliance as
one of the top 25 best
companies to work in
India
SUSTAINABILITY
Won ‘First ICSI CSR
Excellence Award 2016’ by
The Institute of Company
Secretaries of India
Won the best
'Sustainable Corporate
of the year' 2017 at
Sustainability 4.0 awards
by Frost and Sullivan
and TERI
Smt. Nita M. Ambani became the first Indian woman
member of the International Olympic Committee (IOC)
Shri Mukesh D.
Ambani is the
only Indian on
Forbes Global
Game Changers
List for 2017
Shri Mukesh D.
Ambani entered
the Light
Reading’s ‘Hall of
Fame 2017’
Smt. Nita
M. Ambani
felicitated by
Metropolitan
Museum of Art for
her philanthropic
work
QUALITY
TECHNOLOGY, PATENTS, R&D AND INNOVATION
Won the 'Quality
Achievements Award
2016' in Gold Category
by European Society
for Quality Research at
Quality Awards
Winner of world-class
performance excellence
Award 2016 during
22nd Asia Pacific Quality
Organisation International
Conference on Quality
Won 'The Majestic Five
Continents Award for
Quality & Excellence
2016' at a function held
in Germany
Recron Green Gold Fibre
has been certified as
‘Greenest Textile Fibre in
the World’ by SGS
Hong Kong
Winner of IP Business
Congress Asia Elite
award 2016 from
Intellectual Asset
Management (IAM)
Won The Australasian
Maintenance
Excellence Award 2016
from SIRF business
network, Australia
Winner of North
American Maintenance
Excellence Award
for Process
Manufacturing 2016
HEALTH, SAFETY & ENVIRONMENT CAPITAL RESOURCES
CORPORATE SOCIAL RESPONSIBILITY
Winner of the first Healthy Workplace
Platinum 2016 Award instituted by
the Arogya World India Trust and
Public Health Foundation of India
TXF Perfect 10 Top Deal of
2016 - Best Overall ECA/Project
Finance Deal of the Year;
Reliance VLEC Deal
Won the 'Best ART (Anti-Retroviral
Therapy) Centre Award' by Gujarat
State AIDS Control Society
Read more about Awards and Recognition on Pg. 161
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Key Performance Indicators
7
KEY PERFORMANCE INDICATORS
PROFIT AND
LOSS METRICS
(CONSOLIDATED)
(Net Profit CAGR of 26.7%)*
BALANCE
SHEET METRICS
(CONSOLIDATED)
(Networth CAGR of 30.0%)*
SOCIAL METRICS
(STANDALONE)
Revenue (` crore)
Networth (` crore)
,
9
3
3
6
4
4
,
,
2
9
3
8
0
4
,
,
4
9
4
8
8
3
,
,
8
9
2
3
9
2
,
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
6
1
-
5
1
12.6% y-o-y
Profit After Tax
(` crore)
3
9
4
2
2
,
6
6
5
3
2
,
1
7
1
5
2
,
9
7
8
0
2
,
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
#
6
1
-
5
1
18.8% y-o-y
Earnings per
Share (`)
.
5
6
7
.
1
0
8
.
4
5
8
.
7
0
7
,
0
8
1
0
3
3
,
7
1
-
6
1
1
0
9
9
2
,
7
1
-
6
1
.
3
1
0
1
,
9
0
7
3
6
2
,
7
1
-
6
1
Contribution to
National Exchequer
(` crore)
9
9
3
1
5
,
7
1
1
3
4
,
2
2
3
3
3
,
4
7
3
1
3
,
0
5
9
8
2
,
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
6
1
-
5
1
7
1
-
6
1
19.2% y-o-y
,
6
5
5
1
3
2
,
,
2
8
4
8
1
2
,
,
0
7
6
8
9
1
,
,
0
3
0
2
8
1
,
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
6
1
-
5
1
13.9% y-o-y
4
7
0
.
8
7
0
.
5
7
0
.
0
7
0
.
9
5
0
.
8
1
2
1
,
0
2
2
1
,
9
5
2
1
,
8
1
1
1
,
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
6
1
-
5
1
7
1
-
6
1
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
6
1
-
5
1
15.0% y-o-y
8
4
4
1
,
7
1
-
6
1
Book Value per
Share (`)
HSE Expenditure
(` crore)
.
2
1
9
8
.
5
5
8
7
.
3
2
4
7
.
9
5
7
6
.
9
9
1
6
.
4
7
6
3
.
3
7
3
3
.
9
1
8
2
.
0
5
8
2
.
8
9
8
2
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
#
6
1
-
5
1
7
1
-
6
1
18.6% y-o-y
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
6
1
-
5
1
7
1
-
6
1
13.5% y-o-y
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
6
1
-
5
1
7
1
-
6
1
8.9% y-o-y
SHAREHOLDERS
METRICS
(CAGR of 31.5% in Market
Capitalisation)*
Market Capitalisation
(` crore)
,
9
0
9
8
2
4
,
7
1
-
6
1
,
3
0
7
8
3
3
,
,
5
0
4
0
0
3
,
,
7
4
8
6
6
2
,
,
2
0
8
9
4
2
,
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
6
1
-
5
1
26.6% y-o-y
.
5
0
1
.
0
0
1
.
0
1
1
5
9
.
0
9
.
3
1
-
2
1
4
1
-
3
1
5
1
-
4
1
6
1
-
5
1
7
1
-
6
1
4.8% y-o-y
* CAGR since IPO
# Excluding exceptional item
India’s first private sector
company to feature in Fortune
Global 500 list of ‘World’s
Largest Corporations’, currently
ranked 215th in revenue and
126th in profit terms.
Debuts in LinkedIn 'Top
Companies - where India
wants to work' list - 2017.
Ranked 106th on the Forbes
Global 2000 list (2017).
Continues to be the top ranked
and one of the most valuable
Indian companies.
Debt Equity Ratio
R&D Expenditure
(` crore)
Dividend per Share
(`)
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 8
LETTER TO SHAREHOLDERS
Dear Fellow Shareowners,
I am happy to report that we have delivered
superior financial performance, improved
capital efficiency and continued strong project
execution. Our focus on delivery and growth
continued to yield results in what was a difficult
year for many of our peers globally. Our
financial and operational performance in
FY 2016-17 was outstanding, reflecting in
record net profit. I would like to express my
gratitude to everyone at Reliance for the hard
work they have put in to achieve this.
Mukesh D. Ambani
Chairman and Managing Director
Global economic growth in 2016 was stable aided
by a recovery in commodity prices and increased
global trade. Global oil prices were supported by
co-operation between OPEC and non-OPEC
producers for cutting production. While underlying
demand trends are encouraging, tightening rates in
US and possible end of accommodative monetary
policy in other developed countries could impact
emerging economies.
GDP growth in India was robust at 7.1%, supported
by strong consumption growth and government
spending. The introduction of GST is a significant
reform measure and will overtime help India in
simplifying tax structure and compliance, aligning it
with practices in developed countries.
Reliance delivered robust operational and financial
performance during the year, resulting in net
profit of `29,901 crore (US$ 4.6 billion), growth of
18.8% y-o-y. The most significant factors affecting
year-to-year comparisons of earnings and cash
flow generated by our operating activities are
improvement in the petrochemicals and refining
margins. Refining and petrochemicals businesses
achieved record levels of profitability, underpinned
by our ability to access feedstock competitively
from global markets, maintain high operating
rates and place products in growth markets. The
refining business delivered double-digit GRMs for
the second year in a row, benefiting from the global
demand for transportation fuels and stable product
cracks.
Lower oil price environment continues to drive
strong demand growth across key markets. Global
oil demand for 2016 grew by 1.6 mb/d, led by China
and India. India has now become a major force in
driving global oil demand growth and is now the
world’s third largest oil consumer. India’s oil demand
grew 5.2% during the year led by strong growth in
gasoline and jet fuel. Diesel demand growth in India
however remained muted as industrial cycle lagged
consumption. The pace of petrochemical product
demand growth was lower compared to previous
years. Polymer demand in India was up 7% y-o-y
while polyester demand grew by 3% y-o-y.
RECORD NET PROFIT
FOR THE YEAR LED
BY THE HIGHEST
EVER EARNINGS
FROM REFINING AND
PETROCHEMICALS
BUSINESSES
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Letter to Shareholders
9
Refining and Marketing
Refining and Marketing segment EBIT increased by
6.5% y-o-y to a record level of ` 25,056 crore
(US$ 3.9 billion), supported by higher GRM and
crude throughput. GRM for the year stood at eight
year high level of US$ 11.0/bbl as against US$ 10.8/
bbl in the previous year. RIL’s GRM outperformed
Singapore complex margins by US$ 5.2/bbl, the
highest premium achieved in the last eight years.
Though regional refining margins trended
downwards, our high-conversion refining system
was able to take advantage of firm margins on
middle distillates and wider discounts on difficult-
to-process crudes in a well-supplied market. During
the year, our refineries processed 65 different grades
of crude including five new grades. This illustrates
the flexibility and complexity of our refining assets
at Jamnagar which can process heavy and sour
crudes to produce high value transportation fuels.
During the year, light products mainly gasoline
and naphtha witnessed a sharp decline in cracks.
This was partially offset by firm middle distillate
cracks and efficient yield shift management in our
refineries to capture higher margins.
Our petroleum retail operations continued to gather
momentum with 1,221 fuel outlets operational at
the end of the year. These outlets are registering
industry leading pump throughputs which were
as high as twice the industry average in March
2017. Our success in petroleum retail is testimony
to our superior value proposition to consumers
and our ability to leverage technology for ensuring
consistent delivery. These attributes have also
helped us ramp-up our bulk marketing business
leading to market share gains.
Our petcoke gasification initiative is aimed at
reducing the energy cost for the Jamnagar complex
on a sustainable basis. We have achieved the
installation and mechanical completion for the
gasification project linked to our DTA refinery and
the pre-commissioning activities are ongoing.
On completion, this will make Jamnagar complex
highly energy efficient with the lowest energy cost
for any integrated Refinery and Petrochemicals
facility globally.
Petrochemicals
Petrochemicals segment EBIT increased sharply
by 27.5% to a record level of `12,990 crore ($ 2.0
billion), supported by favorable product margins
and growth in volumes. Favorable naphtha cracking
economics, firm domestic demand and higher
volumes in the polyester chain were the key factors
driving profitability. EBIT margin of 14% is at a five
year high level, reflecting strong polymer margins
and recovery in polyester chain economics.
Our company continues to benefit from integrated
business model, wide product portfolio and scale
economics which provides us a high degree of
earnings stability. India remains a key growth
market for petrochemical products in the global
context and our new capacity additions are poised
to capture growing domestic demand.
We successfully commissioned our new Paraxylene
(PX) capacity at Jamnagar. This plant is built with
state-of-the-art crystallisation technology from
BP which is highly energy efficient. With the
commissioning of this plant, our PX capacity has
doubled and Reliance has emerged as the world’s
second largest producer of PX with about 11% of
global production.
In order to provide feedstock security and flexibility
to our cracker portfolio on the west coast of India,
we have created a virtual floating ethane pipeline
between North America and Dahej in Gujarat. The
ethane receipt and handling facilities at Dahej has
been commissioned in a record time of less than
three years and ethane cracking has commenced
at our crackers. Ethane sourcing from North
America will improve the cost competitiveness of
our existing crackers and enable us to optimise the
portfolio in a volatile market environment.
At Jamnagar, we are in the process of starting up the
largest refinery off-gas cracker (ROGC) in the world
along with related downstream capacities. This is
a pioneering initiative and a unique opportunity
available at Jamnagar due to the scale of our
refinery operations. The cracker is tightly integrated
with our refineries and will use refinery off-gases as
feedstock. This cracker will have one of the lowest
cost positions globally. The incremental volumes
will target a deficit Indian market which also
continues to be among the fastest growth market
for petrochemical products.
RIL’S GRM
OUTPERFORMED
SINGAPORE COMPLEX
MARGINS BY US$ 5.2/
BBL, THE HIGHEST
PREMIUM ACHIEVED IN
THE LAST EIGHT YEARS.
R&M
During the year, our
refineries processed 65
different grades of crude
including five new grades.
This illustrates the flexibility
and complexity of our
refining assets at Jamnagar.
Petrochemicals
At Jamnagar, we are in the
process of starting up the largest
refinery off-gas cracker (ROGC)
in the world along with related
downstream capacities.
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 10
Oil & Gas
Reliance is on its way
to become the largest
unconventional natural
gas producer in India with
the commencement of
commercial production from
our CBM fields at Sohagpur.
Retail
Reliance Retail has created
the widest reach in the
organised retail segment
in India with 3,616 stores
operational in 702 cities.
DURING THE YEAR, WE
INVESTED
` 1,14,742 CRORE
(US$ 17.7 BILLION),
THE HIGHEST EVER
NOT ONLY FOR OUR
COMPANY, BUT IN THE
CORPORATE HISTORY
OF INDIA
Oil & Gas
Our upstream business in India continued to
be impacted by weak gas prices and declining
volumes. Production volumes across our domestic
as well as US Shale operations were lower by
23% and 14% respectively. Weak upstream price
environment and lower volumes impacted the
segment EBIT for the year.
I am happy to share that Reliance is on its way to
become the largest unconventional natural gas
producer in India with the commencement of
commercial production from our CBM fields at
Sohagpur. Gas from CBM fields will be delivered
to customers on Indian Gas Grid through our new
302 kilometer long Shahdol-Phulpur pipeline.
Government has notified marketing and pricing
freedom as a reform measure to develop alternate
sources of natural gas including CBM.
Reliance Retail
In our consumer business, it is gratifying to see
an unprecedented growth trajectory continuing.
Reliance Retail revenues increased by 60% on y-o-y
basis to ` 33,765 crore. With this, Reliance Retail has
become the first organised retail Company in India
to cross the milestone of US$ 5.0 billion revenue.
Reliance Retail also sustained its profitability with
EBITDA crossing ` 1,000 crore mark. Reliance Retail
has created the widest reach in the organised retail
segment in India with 3,616 stores operational in
702 cities. It has established leadership position in
all key categories including food & grocery, fashion
& lifestyle and digital products. It has also created
the largest cash & carry chain in the country.
Reliance Retail has adopted multi-channel strategy
and has integrated “offline-online” models to truly
differentiate the customer experience. Reliance
Retail also became the first organised retail chain in
India to support UPI-based payments.
Reliance Jio
I am delighted to report on the achievements of our
newest business Jio. Jio has been a path breaker on
multiple parameters, not only in India, but even on
global stage. Jio added 100 million subscribers in
170 days, the fastest achieved by any technology
company in the world. Jio has built a world-class
all-IP data strong future proof network with the
latest 4G LTE technology. Jio has revolutionised the
Indian telecom landscape by making voice calls for
Jio customers absolutely free, across India, to any
network. Jio makes India the highest quality, most
affordable data market in the world.
Today, data consumption on Jio network is higher
than the total mobile data consumption in the
US and twice that in China. It is the first Exabyte
network in the world. Our investments and
technology innovations have created a data strong
network that delivers unmatched quantity and
quality of data. Jio has led the digital transformation
of India by providing data at prices that are
affordable to all Indians. Our Jio team is customer
obsessed and has the passion to deliver a superior
experience to all our customers.
Jio customers have access to an eco-system of
digital services and apps created to enrich their
user experience. The suite of services include live
TV, on demand movies, music, magazines and news
among others.
The compelling value proposition and high quality
of Jio services has led the largest and the fastest
migration from free to paid services in the digital
services domain. The JIO PRIME membership
program has been a resounding success with 72
million plus customer subscription by 31st March
2017.
Jio is present in all 29 states of India with direct
physical presence in more than 18,000 urban and
rural towns and over 2,00,000 villages. We are
committed to provide Jio services in nearly all the
cities, towns and villages of India, covering over 95%
of our country’s population.
Strong Cash Flows and Balance Sheet
Our Company generated PBDIT of ` 55,529 crore
(US$ 8.6 billion) for the year. During the year, we
invested ` 1,14,742 crore (US$ 17.7 billion), the
highest ever not only for our Company, but in the
corporate history of India. This capex has been
funded while maintaining investment grade ratings.
Our strong balance sheet and conservative financial
profile are reflected through the strong credit
ratings. We have maintained two notches above
India’s sovereign rating for our international debt at
BBB+ by S&P. This capex across energy and materials
businesses and digital services will significantly
enhance Reliance’s cash flows and reduce volatility
in earnings in the coming years.
During the year, our Company has successfully
refinanced long-term financing of US$ 1.75
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Letter to Shareholders
11
Jio
Jio has been a path breaker on
multiple parameters, not only in
India, but even on global stage.
Jio added 100 million subscribers
in 170 days, the fastest achieved
by any technology company in
the world.
Media
CNBC TV18 had 86%
market share during the
annual budget speech.
billion syndicated loan and US$ 550 million club
loan aggregating to US$ 2.3 billion resulting in
substantial interest savings over the remaining
life of these loans. This was the largest amount
syndicated by RIL since 2007.
We have tied up for ~US$ 572 million financing
to purchase six state-of-the-art Very Large Ethane
Carriers (VLECs). This financing deal carries a tenure
of 12 years and comprises of US$286 million tranche
insured by Korea Trade Insurance Corporation
(K-Sure). This deal got a “Better than Sovereign
Rating” and is one of the most well-structured and
innovative financing deal done by the Company.
This deal has been globally recognised and has won
five global awards.
Commitment to Health and Safety
We are committed towards providing a healthy
and safe work environment to our employees,
contractors and all the visitors to our sites. We have
successfully implemented Operating Management
Systems for reduction in Health, Safety, Security and
Environment (HSSE) risks.
We had started the ‘Change Agents for Safety Health
and Environment’ (CASHe) programme more than a
decade ago. Over the years, the CASHe programme
has evolved into a movement encompassing the
entire enterprise with thousands of improvement
projects. The programme has been instrumental in
creating a culture of implementing health, safety
and environment projects on a priority basis.
The program has helped in reducing health and
safety risks across the Company and over 1,500
projects have been identified and control measures
implemented till date.
True to our vision to be a “Cloud First, Mobile
First” organisation, our employees can access
transactional, analytical, and informational
capability on their mobile devices thus improving
productivity, response times, safety and operational
reliability.
Safety is an integral part of our culture, and we will
be launching several Smart Workforce initiatives
which explore the use of sensor-equipped
wearables like goggles, helmets and suits to ensure
worker safety and improve labour efficiency and
utilisation.
Sustainable Growth
Sustainability at Reliance embraces environmental
and social responsibility by creating value for its
stakeholders. We are working to maximise the use
of clean energy in our operations. During the year,
Reliance contributed ` 674 crore towards various
community development initiatives focused in the
areas of rural transformation, health, education,
sports for development, disaster response, urban
renewal and arts, culture and heritage. Through
these initiatives, Reliance has positively impacted
12 million lives across the nation including the
vulnerable and marginalised communities. We work
incessantly to include all stakeholders in our growth
journey and the organisational value depends
greatly on the value it creates for the society at large.
I would like to thank all my colleagues across
the country and the globe for their unflinching
dedication, commitment and contribution to
strengthening Reliance. During the year, the
Reliance team shaped the contours of future growth
platforms in the Consumer and the Energy and
Materials businesses. I am proud to be part of this
gifted team that has strived tirelessly over the last
few years to create unparalleled hydrocarbon assets,
while ushering in the digital age to the remotest
parts of our country.
We are looking forward to continue on our mission
of generating sustainable value for our stakeholders
and India. 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
June 14, 2017
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 12
BOARD OF DIRECTORS
Shri Mukesh D. Ambani
Chairman and
Managing Director
Smt. Nita M. Ambani
Non Executive,
Non Independent Director
Chairman: Finance Committee
Shri Mansingh L. Bhakta
Lead Independent
Director
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
Dr. Dharam Vir Kapur
Independent Director
Prof. Dipak C. Jain
Independent Director
Member: Human Resources, Nomination and
Remuneration Committee, Corporate Social
Responsibility and Governance Committee, Health,
Safety and Environment Committee
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Board of Directors
13
Prof. Ashok Misra
Independent Director
Member: Stakeholders’ Relationship Committee
Dr. Raghunath A.
Mashelkar
Independent Director
Member: Audit Committee, Human Resources, Nomination
and Remuneration Committee, Corporate Social
Responsibility and Governance Committee
Shri Adil Zainulbhai
Independent Director
Shri Raminder S. Gujral
Independent Director
Chairman: Human Resources, Nomination and
Remuneration Committee, Risk Management Committee
Member: Audit Committee
Member: Audit Committee
Shri Nikhil R. Meswani
Executive Director
Shri Hital R. Meswani
Executive Director
Member: Stakeholders’ Relationship Committee,
Corporate Social Responsibility and Governance Committee,
Finance Committee
Chairman: Health, Safety and Environment Committee
Member: Stakeholders’ Relationship Committee,
Finance Committee, Risk Management Committee
Shri P. M. S. Prasad
Executive Director
Shri Pawan Kumar Kapil
Executive Director
Member: Health, Safety and Environment Committee,
Risk Management Committee
Member: Health, Safety and Environment Committee
Read the detailed profiles of our Board of Directors at www.ril.com/OurCompany/Leadership/BoardOfDirectors.aspx
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
14
Delivering a digital India
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital.live andstreaming 100 mn+
SUBSCRIBERS ON-BOARD IN 170 DAYS
15
2,00,000+
VILLAGES CONNECTED – ONE OF THE
WIDEST REACH NETWORK GLOBALLY
>95%
POPULATION COVERAGE BY END OF
THE YEAR
LARGEST
MIGRATION FROM FREE TO PAID SERVICES
IN THE WORLD
Home to the world’s second largest population of 1.3 billion, India has a fast-
growing digital audience with over 1,170 million mobile connections and more
than 300 million internet users. At Reliance, Jio platform is the world’s largest
start up, delivering a digital revolution for hundreds of millions of people and
creating a New India, which is driven by data – the new oil.
Since launch, Jio has redefined benchmarks,
inspiring unprecedented adoption, usage
and service metrics. These are best-in-class
anywhere in the world. Jio ushered in truly
converged digital services in India.
India is the first country to reach 1 billion GB
usage (first Exabyte network), making it the
largest mobile data consumer in the world.
Jio's innovative tariff plans offer the most
affordable data in the world - ensuring
access to everyone. Truly, India is now
ready, live and streaming!
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 16
Touching lives every day.
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital.fuelingprogress 17
1,221
FUEL OUTLETS OPERATIONAL
EVERY 2nd
CHILD GOING TO SCHOOL IN INDIA
WEARS A UNIFORM MADE FROM RELIANCE
POLYESTER
30%
MARKET SHARE AT AIRPORTS OPERATED
B2B2C
TO ADDRESS THE NEEDS OF WIDE RANGE
OF CUSTOMERS
Reliance is about energy. It has redefined the Energy and Materials business by
setting up world scale facilities. It has invested in wide range of downstream
petrochemicals products that has role to play in almost every aspect of modern
life. Today, Reliance is integrated across the energy value chain through a unique
portfolio of upstream, refining and petrochemicals businesses.
In its refining and marketing business,
Reliance is satisfying customers with
a unique quality and quantity fueling
experience delivered through stringent
quality checks at various stages of
product movement from the feeding
terminals to the retail outlets.
Its petrochemical business caters
to the requirements of a vast range
of industrial and consumer product
manufacturers. From fibres to
plastics to industrial chemicals, RIL's
petrochemical products have applications
in several industries such as agriculture,
healthcare, pharmaceutical, textiles and
apparels, plastic products, automotive,
telecommunication and infrastructure.
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONprogress 18
Creating newer experiences
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital.Wowing new India 19
LARGEST
WHOLESALE CASH AND CARRY
CHAIN IN THE COUNTRY
200+
BRANDS OFFERED BY
RELIANCE DIGITAL
ResQ
INDIA’S FIRST MULTI–PRODUCT, MULTI–
BRAND AND MULTI–LOCATION SERVICE
NETWORK
#1
CNBC TV18 AND CNBC AWAAZ
ENGLISH AND HINDI BUSINESS
NEWS GENRES, RESPECTIVELY
The consumer is at the heart of Reliance's business. Reliance is building its
offerings around the specific needs of its consumers. It has built India’s largest
retail business and leading media and entertainment network to bring a tangible
difference to people’s lives. Reliance is enriching lives of millions of consumers
by providing them the widest choice, outstanding value proposition, superior
quality and unmatched experience across its retail and media offerings.
Reliance Retail is catalysing development
of organised retail in the country. It
touches millions of lives every day with
an unparalleled reach, size and scale.
Reliance Retail’s commitment to deliver
inclusive growth is reflected in its core
strategy to integrate with a large number
of farmers, small manufacturers and
retailers and connect them with millions
of consumers. Reliance Retail has
invested enormous efforts in the past
10 years in building an infrastructure
that is cutting edge, scalable and world
class. Over the years, Reliance Retail
has transformed shopping experience
for discerning Indian consumers and
commands leadership across key
consumption baskets.
Network18 is a media and entertainment
powerhouse reaching ever widening
audience with channel-agnostic approach,
investments into regional (vernacular)
offering and strategic collaborations.
CNBC TV18 had 86% market-share during
the annual budget-speech.
Digital Content Properties include
Moneycontrol.com - Leader in the finance
category, Firstpost.com - India’s first and
the biggest digital-only newsroom, OTT
video platform VOOT, and regional news
destination News18.com. Viacom18’s
digital video destination VOOT was
rated one of the top apps of 2016 on the
Google Play Store.
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONnew India 20
NURTURING DIGITAL ENTREPRENEURSHIP
GenNext Hub is a Reliance-backed start-up programme to
catalyse the start-up ecosystem for a digital India. In just over
two years, GenNext Hub has a portfolio of 51 start-ups.
“At GenNext Hub we are catalysing a unique start-up ecosystem,
which rests on the tripod of talent, technology and trust. We spot
and encourage ‘talent’, help them harness their ‘technology’ and
back them up by putting total ‘trust’ in them”
Dr. Raghunath Anant Mashelkar,
Chairman, GenNext Ventures & Board member, RIL
GENNEXT HUB
SUMMER 2016 COHORT
Codemojo: Offers white labelled plug-n-play
components for customer engagement
www.codemojo.io
Dattus: An industrial IoT company providing
hardware and software solutions
www.dattus.com
Don’t Scratch Your Head (DSYH): A cloud-
based SaaS solution enabling single-window
reconciliation
www.dsyh.in
Happy2Refer: Leveraging the power of
multi-degree referrals for hiring
www.happy2refer.com
Headspin: Allows testing and monitoring of
mobile apps on global cell networks
https://headspin.io
Megdap: Provides TexLang - a Language
Technology Platform, for near time &
accurate language translation
www.megdap.com
NavStik Labs: Developed FlytOS, the
operating system for commercial drones.
flytbase.com
Recipe Book: An recipe recommendation
and discovery platform based on Image
Recognition and Natural Learning
Processing.
www.recipebook.io
Tagalys: Personalises visitor-product
engagement across features like Site Search,
Browse and Recommendations
www.tagalys.com
WINTER 2016 COHORT – ACCELERATOR
Conexstra: Transforms shop floors
www.conexstra.com
Energimate: An IoT product startup
www.energimate.com
Intelitaap: Omni-channel data driven
consumer engagement platform
www.intelitaap.com
Mozzo: Brings offline spaces to life
www.mozzobytes.com
Payment Gateway of India: An assisted
FinTech ecosystem
www.pgofindia.com
Puzzelo: Branded mobile games that helps
brands to reach and engage
www.puzzelo.com
Snippt: Platform for curated news and
media content
www.mysnippt.com
Tiger.do: Mobile app that enables websites
with a range of powerful features
www.tiger.do
Wellth: Cognitive health screening platform
and products
www.wellth.in
Widely: A tool for online businesses to
upgrade into a progressive web app
https://widely.io
YoRide: A transportation app that provides
route optimisation, real-time information &
updates, first-mile & last-mile connectivity
and mobile ticketing among others
www.yoride.co
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Nurturing Digital
Entrepreneurship
21
4
Cohorts
15+
RIL Proof of Concepts
51
Startups selected
15+
Partners
3500+
Startup Applications
50+
Mentors
WINTER 2016 COHORT - SCALERATOR
1Mobility: Provides solutions to secure
mobile devices
1mobility.com
BeNow: Payment directly from bank account using
the National Payment Corporations’ UPI technology
www.benow.in
BuyHatke : Provides shopping insights and best
price for commerce decisions
www.buyhatke.com
Doctors' Circle: An AI powered ‘Personal Health
Assistant’ which can answer health querys
www.doctorscircle.in
Enguru: An Edtech startup aimed at providing
English Language and communication skills training
www.enguruapp.com
Mobiotics: Delivers enterprise grade Multiscreen
OTT content delivery, engagement and
monetisation
www.mobiotics.com
NutSpace: A platform that uses stories to build
communication, creativity, critical thinking,
confidence and life skills in children
www.nutspace.in
OnGrid: An Aadhaar-enabled trust platform
providing credible information
www.ongrid.in
Sqrrl: A personal finance platform aimed at
millennials to help save and grow their money
www.sqrrl.in
GENNEXT
GENNEXT
H B
H B
CATALYSING THE INDIAN
STARTUP ECOSYSTEM
The startup community in India will play a big
role in achieving the “Digital India” objective.
At GenNext Hub, the Company is catalysing
this startup community by bringing together
emerging entrepreneurs, business leaders,
corporations, industry associations, academic
institutes, media, and technology enablers. In this
short period of time, GenNext Hub has engaged
leaders from organisations such as Microsoft,
NASSCOM, TiE, Amazon, Google, ICICI Bank,
NVIDIA, India Angel Network, Nexus Venture
Partners, CIO Angel Network, YourStory, Silicon
Valley based Spinta Global Accelerator, Nishith
Desai Associates, to support the startup growth.
GenNext Hub also works closely with IITs, NITs and
IIMs to identify high-potential entrepreneurs.
GenNext Hub helped us
navigate India Go-To-Market
quickly through valuable
mentorship and industry
insights. Through GenNext Hub,
we were able to conceptualise
and execute several Proof of
Concepts (PoCs) and market
validation helped us close deals
quickly and get more business
with other customers.
GenNext Hub acted as the
main conduit for Dattus.
Right from identifying where
our technology will fit in RIL
to identifying right decision
makers, GenNext Hub team
acted as perfect mentor.
Through GenNext Hub, we
got valuable insights to tweak
our product and service
offerings and showcase our
expertise in front of the CXO’s
of Reliance Retail and Jio
leadership.
Read more about GenNext Hub on Pg. 146
Manish Lachwani,
Founder, Headspin
Lokesh Gupta,
CTO, Dattus
Sumit Karanji,
COO, DSYH
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 22
BUSINESS MODEL - INTEGRATED
APPROACH
I O N S HIP
T
A
L
E
SOCIAL & R
NATU
R
A
L
Vision: 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 all the domains where it operates.
L
A
I
C
N
A
N
I
F
INTERLINKED
CAPITALS
H
U
M
A
N
D
E
R
U
MANUFAT
INTELLE
C
TUAL
RIL GROWTH FOR ALL
PROCESS
External Environment
Pg. 58 and 59
Strategy
Pg. 24 & 25, 113
BUSINESS MODEL
Business
Differentiators
Pg. 26 to 37
Deliverables
Outcomes
Pg. 26 to 37
Performance
Pg. 62 to 107
Inputs
RMS
Pg. 160
Enterprise Risk Management
Pg. 153 to 160
INTEGRATED REPORTING FRAMEWORK
CAPITALS
INPUTS
Natural
Pg. 114-120
Sourcing responsibly and using
natural resources efficiently
Human
Pg. 121-127
Developing people and their
knowledge with necessary
training and skill development
programmes
Intellectual
Pg. 128-136
Strengthening the Company
with team's business
experience and insights
Manufactured
Pg. 137-143
World scale manufacturing
facilities and supply chain
infrastructure to meet customer
and business demands
Financial
Pg. 144
Social and
Relationship
Pg. 145-150
Generating returns for
stakeholders through effective
mobilisation and utilisation of
financial resources
Building and nurturing
relationships with customers
and suppliers, and the
communities in which the
company operates
Value Creation - RIL’s business model and outcomes are aligned with integrated reporting framework of IIRC (International
Integrated Reporting Council) and United Nations Sustainability Development Goals (SDGs).
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital.
Business Model - Integrated
Approach
RIL'S SUSTAINABLE DEVELOPMENT
COMMITMENTS
1. Opportunity & Diversity
As an equal opportunity employer, promote a culture
of transparency, empowerment and meritocracy.
3. Community Development
Empowering the underprivileged, enhancing their access.
SDG 5: Gender equality
SDG 8: Decent work and economic growth
SDG 10: Reduced inequalities
2. Management of Environmental Impact
Ensure industry-leading energy cells at each site
working towards energy security
SDG 7: Affordable and clean energy
SDG 12: Responsible consumption and production
SDG 13: Climate action
SDG 14: Life below water
SDG 15: Life on land
SDG 1: No poverty
SDG 2: Zero hunger
SDG 4: Quality education
SDG 11: Sustainable cities and communities
SDG 16: Peace, justice and strong institutions
4. Safety
Work with Industry peers to define and upgrade standards
of process safety and proactively promote safety for itself
and across the industry.
SDG 3: Good health and well-being
UNITED NATIONS -SDGs
OUTPUTS
OUTCOMES
•
•
•
•
•
•
•
•
•
•
•
•
•
•
45.5% of water is recycled
Increase in Material recycled
Training man-hours: 76+ lakh
Employee Engagement score
increased to 93%
Break-through research
60 patents granted
19,000 ideas under the Mission
Kurukshetra programme
24.9 MMT of petrochemical
production
US$19.5 billion total exports of
refined products
Jio - 1st Exabyte Network Globally
Revenue: `3,30,180 crore
Profit after taxes: `29,901crore
•
•
•
•
•
•
•
•
•
•
Cleaner air, water and soil
maintaining flora and fauna with
optimum use of scarce resources
Direct Employment: 1.4 lakh
Indirect employment: 50 lakh
Technology for bottom of the barrel
approach
Future ready for 5G, 6G
Beyond non-renewable energy
1.5% of world transport fuel
processed
Creating Digital Eco-system for India
31.5% CAGR of Market Capitalisation,
since IPO
Largest investment cycle while
maintaining above sovereign level
credit rating
51 start-ups graduated from
GenNext Hub till date
Contribution to national exchequer
`51,399 crore
•
Impacting 12 million people
23
5. Waste Management
Ensure efficient use of solid catalysts
including investment in development of
bio-catalysts to replace solid catalysts.
SDG 12: Responsible consumption
and production
6. Supply Chain Management
Committed to build and maintain a
top-quartile supply chain with focus on
sustainability.
SDG 17: Partnerships for the goals
7. Water Management
Deploy world-class technologies
across all sites to reduce fresh water
consumption.
SDG 6: Clean water and sanitation
SDG 12: Responsible consumption
and production
8. Product Stewardship
Develop road-map for each product
in its portfolio based on continuous
engagement.
SDG 9: Industry, innovation and
infrastructure
9. Clean Energy
Ensure maximum use of clean energy
in all the operations - collaborate with
best-available technology licensors.
SDG 7: Affordable and clean energy
10. Health
Committed to provide healthcare
facilities to all people (on-roll employees
and contract staff ).
SDG 3: Good health and well-being
11. Customer Satisfaction
Aspire to be the most customer-
focused company with the highest
customer loyalty.
SDG 17: Partnerships for the goals
12. Asset Utilisation
Efficient and maximised utilisation of the
assets to optimise energy.
SDG 9: Industry, innovation and
infrastructure
SDG 12: Responsible consumption and
production
Value Creation - RIL’s business model and outcomes are aligned with integrated reporting framework of IIRC (International
Integrated Reporting Council) and United Nations Sustainability Development Goals (SDGs).
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
24
BUSINESS MODEL - VALUE CREATION
STRATEGY
DRIVING INNOVATION
CONSISTENT GROWTH
DELIVERING VALUE
SUSTAINABLE TRANSFORMATION
IN SOCIETY
INDUSTRY LEADING
OPERATING RATES*
PETROCHEMICALS
PRODUCTION IN INDIA
AT 24.9 MMT*
REFINING &
MARKETING
• Largest single-site refinery with robust
configuration
• Strategic locational advantage
with dedicated infrastructure
• Among lowest cost producer globally
with flexible product slate
• Consistently maintaining high
operating rates
PETROCHEMICALS
• One of the most integrated
petrochemicals producers globally
• Wide product portfolio with leadership
position across product categories
• State-of-the-art production facilities
with balanced cracker portfolio
Industry leading operating rates
•
• Presence in one of the fastest
growth markets
RETAIL
• Operates on multiple store concept
model to serve different customer
needs
• Offers best shopping experience to
Indian consumers with consistent
choice, quality, value and convenience
• Pan-India presence
• State-of-the-art retail infrastructure and
supply chain providing solid foundation
for growth
DIGITAL SERVICES
• Only ubiquitous 4G coverage in India
with high speed and quality coverage
• World’s largest greenfield 4G LTE
wireless broadband network
• Fully digitised operations from
onboarding through fulfillment
• Transformative customer value
propositions
OIL & GAS
• High quality portfolio with presence in
conventional and unconventional resources
• Operating one of most complex and largest
deep water block KG-D6
• Partnership with BP in India provide
significant technical expertise
• Material position in US Shale
FIELD UPTIME AT PAR
WITH GLOBAL INDUSTRY
BENCHMARKS*
MEDIA
• Robust bouquet of channels
across various genres – business,
entertainment, infotainment, kids
• Category leading digital properties in
financial services, entertainment, news
• Significant local language content,
tapping regional markets
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Business Model - Value Creation
FIVE ENABLERS
SAFETY
• Use of drones for safety
DIGITAL TECHNOLOGY
• Omni-channel initiatives in Reliance Retail
•
• Future Ready 5G, 6G and beyond
* GST for community
CAPITAL PRODUCTIVITY
•
•
*ROCE (adj.) for FY 2016-17 is 25.4%,
increase 820 bps y-o-y
*Substantial interest savings from successful refinancing of
long-term loans aggregating
to US$2.3 billion
25
OPERATIONAL EFFICIENCY AND EFFECTIVENESS
• Fuel retail throughput well above industry average
• Uninterrupted and high-speed data access anywhere,
anytime
ETHICS
• Ethics and Compliance Task Force oversees and monitors
implementation of ethical business practices
ACHIEVED A TURNOVER
OF `33,765 CRORE
REGISTERING A STRONG
GROWTH OF 60.2%*
AVERAGE
CONSUMPTION ON
JIO IS 10GB/MONTH/
USER (HIGHEST
IN WORLD)*
VALUE CREATED
SHAREHOLDER
Active portfolio management by investing
in the Consumer and Energy & Materials
businesses
•
•
•
*Dividend Recommended - 110 %
*Market Capitalisation - `4,28,909 crore
*Improved RONW (adj.) to 16.8% up 170
bps y-o-y (standalone)
EMPLOYEE
Continuous learning and structured career
progression opportunities
*Digitised learning – launch of Digital J3
•
• R-University: Driving employee learning and
training
*Imparted >76 lakh man hours of training
•
CUSTOMER
•
*100 million+ Jio subscribers in 170 days from
launch
*86% market share in CNBC TV 18 during the
annual budget speech
*Over 30 million members registered to
Customer Loyalty Programme of Reliance Retail
*Launched 'Chemistry for Smiles' and
'Transforming Life into Quality Life'
•
•
•
FACEBOOK RECOGNISED
FIRSTPOST AS ONE OF
THE MOST INNOVATIVE
USERS OF FB LIVE IN INDIA
AND ABROAD*
SOCIETAL
Society provides Reliance with a license to
operate, and with this privilege comes a
responsibility.
• CSR activities in conformity with the
Sustainable Development Goals (SDGs)
*Created 50 lakh jobs indirectly
•
*CURRENT YEAR OUTCOMES
Read more about Strategic Framework on Pg. 113
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 26
REVIEW OF OPERATIONS
Refining and Marketing
Petroleum refining and marketing
(R&M) is an integral part of Reliance's
drive for growth and global
leadership in the core energy and
materials value chain.
ACHIEVEMENTS
US$ 19.5 billion
Total exports of refined products
1,221
Fuel outlets
operational
US$ 11.0/bbl
Refining margins -
8 year high
US$5.2/bbl
Premium over Singapore
benchmark, significantly
above five-year average
65
Different crude
grades processed
during the year
240
KL/month/outlet
Industry leading
throughput
425 flights
Refueled daily with
presence in 25 airports
The petcoke gasification
project to achieve
sustainable long-term
energy cost reduction
21%
y-o-y increase in ATF
throughput handled
by Reliance aviation
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Review of Operations
27
PERFORMANCE IN FY 2016-17
RECORD EBIT
`25,056
CRORE
FY 2016-17
FY 2015-16
`25,056 crore
`23,534 crore
6.5% y-o-y
REGIONAL V/S RIL REFINING
MARGINS (US$/bbl)
USGC
FY 2016-17
FY 2015-16
US$8.7/bbl
US$11.8/bbl
ROTTERDAM
FY 2016-17
US$5.3/bbl
FY 2015-16
US$6.3/bbl
SINGAPORE COMPLEX
FY 2016-17
US$5.8/bbl
FY 2015-16
US$7.5/bbl
RIL
FY 2016-17
FY 2015-16
US$11.0/bbl
US$10.8/bbl
STRATEGIC
ADVANTAGES
REFINERY CONFIGURATION
Largest and most complex refining assets
at a single location.
OPERATIONAL EXCELLENCE
Maintain the highest
safety standards with continuous efforts.
CRUDE SELECTION AND SOURCING
Refinery configuration and logistics
infrastructure availability allow crude
portfolio optimisation with changing
market dynamics.
CONTINUOUS INNOVATION
Improved capability to produce BS VI
gasoline specifications in DTA refinery.
LOGISTICS AND SUPPLY-CHAIN
State-of-the-art logistics infrastructure to
support the largest refining hub.
MARKET ACCESS AND RESPONSIVENESS
Global outreach with trading offices and
tankages at key locations.
ENERGY INDEPENDENCE
Gasification projects to make Jamnagar
Complex highly energy efficient.
Read more about Refining and Marketing Operations on Pg. 64
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 28
REVIEW OF OPERATIONS
Petrochemicals
RIL offers an extensive range
of polymers, polyesters, fibre
intermediates, aromatics and
elastomers providing world-class
experience to Reliance’s customers
across a range of applications –
packaging, infrastructure, agriculture,
automotive, housing, and healthcare
among others.
ACHIEVEMENTS
2nd
largest Paraxylene producer globally after
successfully commissioning the Paraxylene
plant at Jamnagar
24.9 MMT
Overall Petrochemicals
production in India
14%
EBIT margin -
a 5-year high
Refinery Off Gas Cracker Project (ROGC)
and downstream projects completed
installation, pre-commissioning and start-
up activities ongoing
Commissioned world’s largest and most complex
Ethane project with all six very large ethane
carriers (VLECs) delivered and operational
33%
Domestic polymer
market share
36%
Domestic polyester
market share
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Review of Operations
29
PERFORMANCE IN FY 2016-17
RECORD EBIT
`12,990
CRORE
OVERALL PETROCHEMICAL
PRODUCTION IN INDIA(MMT)
0.8% y-o-y
FY 2016-17
FY 2015-16
`12,990 crore
`10,186 crore
FY 2016-17
FY 2015-16
24.9 MMT
24.7 MMT
27.5% y-o-y
TRANSFORMING LIFE INTO QUALITY LIFE - ‘CHEMISTRY FOR SMILES’
Reliance endeavours to partner with its customers in developing products
and services that bring smiles on the faces of end-consumers and adds value
to life
STRATEGIC ADVANTAGES
GLOBAL SCALE
Leading producer of petrochemicals with global scale
and capacities. Reliance is the first Company globally to
conceptualise and excecute large scale imports of Ethane
from North America as feed stock for its cracker portfolio in
India through Very Large Ethane Carriers (VLECs).
INTEGRATION
Integration between refining and downstream products
mitigate the impact of price volatility.
LEADERSHIP
Technology leadership, cost efficiencies and responsible
operational practices.
Read more about Petrochemicals operations on Pg. 71
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 30
REVIEW OF OPERATIONS
Oil and Gas Exploration and Production
With a portfolio consisting of
onshore and offshore blocks in India
(including CBM) as well as acreage
in US Shale plays, RIL is one of the
largest exploration and production
players in India.
ACHIEVEMENTS
174.0 BCFe
RIL’s share of production
(CY 2016) in US shale operations
1,088
Shale gas producing wells
at the end of CY 2016
~1.07 BCFe/day
Average gross US shale JV
production
CBM Project
Commenced Commercial
production from block in
Sohagpur (West)
95.0 BCFe
RIL’s share of production
in India
KG D6 JV production
at 101.1 BCF Gas and
1.25 MMBBL Oil and
condensates
Shahdol-Phulpur pipeline connecting
CBM field to India gas grid
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Review of Operations
31
Oil and Gas Exploration and Production
PERFORMANCE IN FY 2016-17
EBIT
(`1,584)
CRORE
(`1,584 crore)
FY 2016-17
FY 2015-16
`3,630 crore
STRATEGIC ADVANTAGES
MATERIALITY IN UNCONVENTIONAL
HYDROCARBON BUSINESS
CBM block in Sohagpur (Madhya Pradesh)
commissioned.
SIGNIFICANT INFRASTRUCTURE
ON THE EAST COAST
KG D6 fields commissioned in 2008
are India’s only producing green-field
Deepwater oil and gas production facility.
SAFETY
Safety record amongst the best in the
world.
PARTNERSHIPS
Partnership with BP combining RIL’s project
execution expertise and BP’s deep water
exploration and development capabilities.
Strong partners in US Shale JVs.
Read more about Oil and Gas operations on Pg. 81
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 32
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.
ACHIEVEMENTS
Reach
>3.6 mn
customers served
every week
702
cities
30 mn
Loyalty customer
base
Scale
3,616
Retail stores
13.5
mn sq. ft. retail space
>1.7 mn
Garments sold
every week
>20%
Market share in UHD TVs
>75,000
People employed
directly & indirectly
>500,000
Distribution partners
for communication and
connectivity devices
Over US$ 5 billion in Revenue
India’s first and the only retailer to
cross US$ 5 billion revenue mark and
continues to grow at a rapid pace.
Infrastructure
5.6
mn sq. ft. of
warehousing
space
>100
Distribution
Centres across 23
states
>1,000
Dedicated trucks hauling
merchandise between
distribution centres and stores
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Review of Operations
33
PERFORMANCE IN FY 2016-17
RECORD EBIT
`784
CRORE
FY 2016-17
FY 2015-16
`784 crore
`504 crore
55.6% y-o-y
REVENUE
`33,765
CRORE
FIVE-YEAR CAGR OF 35%
START-UP AND INITIATIVES
•
•
•
Ajio extends its offering by launching
men’s wear, fashion tech and kid’s wear
categories and rolled out various
features such as Immediate Mobile
Payment (IMPS), EMI, automated
refunds and more to enhance consumer
experience.
Reliance Retail becomes India’s first
organised retailer to support UPI based
payments at its stores.
Reliance Retail continues to strengthen its
portfolio of international brands. Enters
into partnership with Flormar, Bally and
Scotch & Soda.
10 YEARS OF EXPONENTIAL GROWTH
2006
Reliance Retail opens its
first Reliance Fresh store
in Hyderabad
2007
Launches Reliance
Digital, a consumer
electronics retail chain
2008
Opens its first fashion
& lifestyle store under
Reliance Trends and
Reliance Footprint
brands
2010
• Crosses 1,000 stores
mark
• Announces
partnerships with
Zegna, Quiksilver
and Steve Madden
2011
• Achieves US$ 1
billion revenue
mark
•
Launches
Reliance Market,
a cash & carry
store chain
2012
Announces
partnerships with
Iconix, Kenneth Cole,
Thomas Pink and
Brooks Brothers
2013
Achieves EBITDA break-
even
2017
Achieves US$ 5
billion revenue mark
33,765
2014
Becomes the largest
retailer in India
2016
Launch of multi-
channel initiatives,
www.ajio.com
www.Footprint360.com
21,075
17,640
14,556
10,845
)
e
r
o
r
c
n
i
`
(
E
U
N
E
V
E
R
7,636
6,102
294
7
0
-
6
0
0
2
1,296
8
0
-
7
0
0
2
3,344
9
0
-
8
0
0
2
4,565
0
1
-
9
0
0
2
1
1
-
0
1
0
2
2
1
-
1
1
0
2
3
1
-
2
1
0
2
4
1
-
3
1
0
2
5
1
-
4
1
0
2
6
1
-
5
1
0
2
7
1
-
6
1
0
2
Read more about Retail operations on Pg. 89
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
34
REVIEW OF OPERATIONS
Digital Services
Jio has brought a transformative shift
in Indian telecom landscape with
commencement of its services in
September 2016.
Jio has redefined the Indian telecom
sector by offering a compelling
value proposition for data, while
eliminating voice and national
roaming charges.
Jio's key objective is to provide
uninterrupted access to innovative
applications and high-speed internet.
Jio is committed to India's global
leadership in digital economy.
ACHIEVEMENTS
World's Largest
4G LTE Network
269.2 MHz
acquired across different
spectrum bands in FY 2016-17
for `13,672 crore
Reliance Jio received the award for Social
& Economic Development: Best Mobile
Innovation for Emerging Markets at the
Mobile World Congress 2017
1,108 MHz
Total spectrum footprint
(uplink + downlink) across
three spectrum bands
Over 1 Exabyte
of mobile traffic per month
Jio network speed and coverage
is consistently ranked the best as
validated by TRAI's MySpeed app
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Review of Operations
35
JIO IMPACT
INDIA - NO.1 IN DATA CONSUMPTION
Over 100 mn
SUBSCRIBERS IN 170 DAYS
WORLD'S LARGEST MIGRATION
FROM FREE TO PAID SERVICES
72 MILLION+ SUBSCRIBERS
h
t
n
o
m
/
B
G
e
r
o
r
C
100
20
47
18
71
63
India
Korea
Japan
China
USA
Source : BCG-TiE Report
Data consumption on Jio network is higher
than the total mobile data consumption in the
US and twice that in China
EMPLOYMENT GENERATION
50
lakhs and more
INDIA LEAP FROGGED INTO THE
GLOBAL DIGITAL LEADERSHIP LEAGUE
STRATEGIC
ADVANTAGES
COVERAGE
Jio is working towards expanding its reach to over 95% of
population coverage by the end of the year. This is backed
by one of the largest deployment of spectrum, fiber
and tower infrastructure, thus providing huge capacity
advantage.
QUALITY
Investment in superior Long Term Evolution (LTE)
technology based network and next generation
technologies.
AFFORDABILITY
Developed its network at an efficient cost base enabling
services at affordable price-passing the benefit of
technology to Indian consumers.
Read more about Digital Services operations on Pg. 96
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
36
REVIEW OF OPERATIONS
Media & Entertainment
Network18 is one of
India’s leading Media and
Entertainment (M&E) players,
with a presence across several
businesses including television
broadcasting, movie production
and distribution, digital content
and commerce, print magazines
and allied media services.
ACHIEVEMENTS
TV18 extended the licensing
arrangement with CNBC Asia to use
the CNBC brand & content until 31st March,
2028 for the business news genre.
86%
market share garnered
during the live coverage
and analysis of the Union
Budget in February 2017
on flagship business news
channel CNBC TV18
IBN Lokmat
once again honoured with
the prestigious 'Ramnath
Goenka Excellence in
Journalism Awards'.
Viacom18 Motion Pictures produced and
released films 'Force 2' , 'Motu Patlu – King of
Kings'. Paramount’s 'Jack Reacher 2' was also
distributed successfully.
Firstpost pioneered a four-hour live digicast
– an amalgamation of broadcast television,
web streaming and Facebook Live – of the May
assembly election results
Viewership share of Regional
News cluster more than
doubled from 1.8% to 4% by
March 2017.
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital.
Review of Operations
37
PERFORMANCE IN FY 2016-17
EBIT
START-UP AND INITIATIVES
(`201)CRORE
SUBSTANTIAL INVESTMENTS INTO
NEW INITIATIVES
Growth Driver
•
4G rapidly gaining acceptance-
Amplifies reach
Rural and Digital coverage through
Broadcast Audience Research
Council (BARC)
Supportive policy initiatives
•
•
•
•
•
•
•
Viacom18 launched its second regional
entertainment channel in the Kannada
market branded as Colors Super in July
2016 to further strengthen its leadership
position.
Three regional news channels namely
News18 Kerala, News18 Tamil Nadu and
News18 Assam/N.E were launched during
the first quarter.
OTT entertainment platform “VOOT”
(launched in March-April 2016) has
garnered about 25 mn gross downloads,
and was voted one of the top Apps of
2016 on the Google Play Store.
CNN-IBN and IBN7 unveiled a new brand
identity, logo and tagline along with a
refreshed on-air look as 'CNN New18' and
'News18 India' respectively.
News18.com and Firstpost umbrella
brands were expanded into Hindi:
Firstpost Hindi was launched, and Hindi
news portal khabar.ibnlive.in.com was
rebranded to hindi.news18.com.
CORPORATE
SOCIAL RESPONSIBILITY
STRATEGIC ADVANTAGES
PROGRAMMES
• Where is my Home? (Highlighting
issues of home-buyers affected by
project delays)
•
Going Green (environmental
problems)
• March on Women! (Issues related to
Women in India)
FOOTPRINT
Diversified play on media across TV, Digital
& Print
STRONG PRESENCE IN REGIONAL
Tapping into the vernacular opportunity
INNOVATION AND AGILITY
Early adopter of technology, including
customer analytics
BALANCED PORTFOLIO Unique mix of
content across news and entertainment
INTERNATIONAL COLLABORATION
Cross-fertilisation of best practices
Read more about Media & Entertainment opeartions on Pg. 103
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 38
RELIANCE FOUNDATION
Reliance Foundation (RF), established in 2010, is an umbrella
organisation for Reliance’s social development initiatives. Led
by Smt. Nita M. Ambani, RF, comprising of a professional team
of 395 experts is a non-profit organisation that aspires to
Change Lives and Empower India. Through its comprehensive
development approach, the Foundation aims to create and
support meaningful activities through innovative institutions
to address some of India’s most pressing developmental
challenges.
The efforts of Reliance have already touched the lives of more
than 12 million people across India in more than 12,500 villages
and 74 urban locations.
Key highlights of CSR initiatives through Reliance Foundation and manufacturing locations for FY 2016-17:
RURAL TRANSFORMATION
Creating sustainable livelihood solutions,
addressing poverty, hunger and malnutrition
• Livelihoods of 8+lakh farmers, fisher
folks and livestock owners enhanced.
• 2,200+ Ha of land brought under
improved cultivation.
• 2,900+ Ha land brought under
irrigation through water harvesting
and conservation efforts.
• Capacity created to collect 32+ lakh
cubic metres of rainwater.
• 12+ lakh saplings planted.
HEALTH
Affordable solutions for healthcare through
improved availability and accessibility
• 5+ lakh health
consultations provided.
• 33,900+ women screened
for anaemia and 8,000
were diagnosed and
treated.
• 29,700+ children screened
for malnutrition 2,000+
malnourished children
were treated.
EDUCATION
Access to quality education, training and
skill enhancement
• Quality education
provided to ~1 lakh
underprivileged
children, 12 partner
NGOs supported.
• 528 student scholarships
to pursue higher studies.
• Launched Digital Learning
Van for underprivileged
children.
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 39
Reliance Foundation
SPORTS FOR DEVELOPMENT
Promoting sports amongst
youth to enable and
facilitate their skills and
development
• Engaged ~6 lakh students
to integrate basketball into
physical education curriculum.
• 18 scholarships under Young
Champs programme for
developing football abilities.
• Rural sports initiative reached
out to 1,500+ rural youth.
DISASTER RESPONSE
Managing and responding to disaster
• Provided 60+ million litres
drinking water to 100+
drought affected villages of
Maharashtra.
• Rejuvenated Sona River
ensuring drinking water
security for 14,000+ people.
• Tech enabled support during
floods in Madhya Pradesh
focussing on disaster related
compensations and disease
management.
ARTS, CULTURE AND HERITAGE
Protection and promotion of India’s 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.
URBAN RENEWAL
Modernisation of cities to revitalise the
ageing infrastructure and provide newer
facilities
•
'Sudama Setu' facilitating
the pilgrims to visit the
Panchnad and Panchkui
area - Dwarka, Gujarat.
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 40
40
Reliance Industries Limited
Life is Beautiful. Life is Digital.
Integrated Annual Report 2016-17
PEOPLE AND INNOVATION
RELIANCE INNOVATION COUNCIL
The Reliance Innovation Council (RIC) provides vision to the
efforts taken by Reliance in the field of innovation. The council
consists of global thought leaders, Nobel laureates and iconic
personalities which makes Reliance one of the most innovative
companies in the world. Born out of RIC’s vision, the state-of-
the-art R&D centre proves to be a strong pillar for technology
development at Reliance.
To serve the innovation vision of RIC, the Company has set
up Reliance Innovation Leadership Centre (RIL-C). RIL-C leads
various programmes to integrate innovation within Reliance,
some of which are mentioned below:
LEAP
7 INNOVATION HABITS
MISSION KURUKSHETRA
Mission Kurukshetra
LEAP was born with the
aim of providing people at
Reliance with access to global
thought and innovation
leaders through interactive
sessions.
The 7 Innovation Habits
programme aims at
empowering entry-level
and middle level employees
at Reliance with specific
innovation skills and
problem-solving capabilities.
Mission Kurukshetra (MK) is a
step towards democratising
creativity and innovation
within the organisation.
Through the Mission
Kurukshetra platform, RIL
people can submit ideas and
track their progress right up
to implementation.
More than 750 ‘Idea
Champions’ – who are
domain experts from across
Reliance – take decisions on
ideas and work with ideators
as well as implementers.
D4 (Define Discover
Develop Demonstrate)
The D4 programme aims to
create a drive for innovation
within RIL’s people, ultimately
creating a vibrant culture
of innovation. An action
oriented programme
enabling participants
to identify innovative
opportunities and solutions
in day-to-day business and
life situations.
OUTCOME
Since inception, 39 LEAP
interactions have been
organised.
More than 1,000 ideas
have been generated and
considered.
Since inception, 19,000 ideas
have been submitted by
employees and many are
under implementation.
Helped to achieve
bottom-up innovation
and help accelerate
the accomplishment of
organisational goals.
IMPACT
Inspire a culture
of thinking big- about
Reliance, the communities
it operates in and the whole
country.
Empower Reliance
employees to inculcate
innovation skills.
Enable a culture of internal
crowd sourcing.
Demonstrate and train
employees to use cutting
edge technologies.
Read more about People and Innovation on Pg. 134
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Company Information
41
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
Group Company Secretary
and Chief Compliance Officer
K. Sethuraman
BOARD COMMITTEES
Audit Committee
Yogendra P. Trivedi (Chairman)
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder S. Gujral
Human Resources,
Nomination and
Remuneration Committee
Adil Zainulbhai (Chairman)
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Dr. Raghunath A. Mashelkar
Stakeholders’ Relationship
Committee
Yogendra P. Trivedi (Chairman)
Nikhil R. Meswani
Hital R. Meswani
Prof. Ashok Misra
Corporate Social Responsibility
and Governance Committee
Yogendra P. Trivedi (Chairman)
Nikhil R. Meswani
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
Health, Safety and
Environment Committee
Hital R. Meswani (Chairman)
Dr. Dharam Vir Kapur
P. M. S. Prasad
Pawan Kumar Kapil
Solicitors & Advocates
Kanga & Co.
Finance Committee
Mukesh D. Ambani (Chairman)
Nikhil R. Meswani
Hital R. Meswani
Independent Directors
Mansingh L. Bhakta
Yogendra P. Trivedi
Dr. Dharam Vir Kapur
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder S. Gujral
Non Independent Director
Nita M. Ambani
Chief Financial Officer
Alok Agarwal
Joint Chief Financial Officer
Srikanth Venkatachari
Auditors
Chaturvedi & Shah
Deloitte Haskins & Sells LLP
Rajendra & Co.
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 India
Syndicate Bank
Union Bank of India
Vijaya Bank
MAJOR PLANT LOCATIONS
Dahej Manufacturing 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
KG D6 Onshore Terminal
Village Gadimoga,
Tallarevu Mandal,
East Godavari District – 533 463,
Andhra Pradesh, India
Nagothane Manufacturing Division
P. O. Petrochemicals Township,
Nagothane - 402 125, Roha Taluka,
District Raigad,
Maharashtra, India
Patalganga Manufacturing
Division
B-1 to B-5 & A3, MIDC Industrial Area,
P. O. Rasayani, Patalganga – 410 220,
District Raigad, Maharashtra, India
Vadodara
Manufacturing Division
P. O. Petrochemicals,
Vadodara - 391 346,
Gujarat, India
REGISTERED OFFICE
REGISTRARS & TRANSFER AGENTS
3rd Floor, Maker Chambers IV, 222, Nariman Point,
Mumbai 400 021, India
Tel: +91 22 2278 5000
e-mail: investor_relations@ril.com
| Fax: +91 22 2278 5111
| Website: www.ril.com
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
40th Annual General Meeting (Post-IPO) on July 21, 2017 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
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 42
MAJOR PRODUCTS AND BRANDS
Business/Brand
Product / Service
Brand Logo
End Uses
REFINING AND MARKETING
REFINING
Propylene
LPG
Naphtha
Gasoline
Alkylate
Superior Kerosene Oil
High Speed Diesel
Sulphur
Petroleum Coke
Feedstock for polypropylene
Domestic, commercial and industrial fuel
Feedstock for petrochemicals such as ethylene, propylene &
fertilisers etc. and as fuel in power plants
Transport fuel
High Octane blend stock for gasoline
Domestic fuel
Transport fuel
Feedstock for fertilisers and pharmaceuticals
Fuel for power plants, cement plants and feed for gasification
PETROLEUM RETAIL
Reliance Gas
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
Qwik Mart
Convenience shopping
Shopping of beverages, snacks, gifts on highways
Refresh
Foods
Passengers amenities/food court on highways
Relstar
Lubricants
Lubricants
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 43
Business/Brand
Product / Service
Brand Logo
End Uses
PETROCHEMICALS
POLYMERS
Repol
Polypropylene (PP)
Relene
Polyethylene (HDPE,
LLDPE & LDPE)
Ethylene Vinyl Acetate
Copolymer (EVA)
Reon
Polyvinyl Chloride (PVC)
Relpipe
Poly-Olefin HDPE and
PPR pipes
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.
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, footwear, flooring, partitions,
roofing, I.V. fluid & blood bags and calendered films for
pharmaceutical applications.
Irrigation, water supply projects, sewerage and drainage,
mines, coal fields, industrial water/fluids/effluents
transportation, gas distribution network, telecom cable ducts
and micro ducts for FTTx, plumbing & construction.
Relflex™
Elastomers
Relflex™ Cisamer
PBR
Relflex™
Stylamer SBR
RelWood™
Synthetic Rubbers
Tyres, Footwear soles & heels, belts, hoses etc.
Polybutadiene Rubber (PBR)
Styrene Butadiene Rubber (SBR)
A superior wood substitute that
looks & feels like wood but much
stronger. It is made from a unique
Composite of Natural Fibres,
Polymers & Specialised Blends of
additives, using patented German
Technology
Automotive Tyres, Tyre treads, Cycle Tyres, Conveyor & V-Belts,
Sports Goods, Dock Fenders, HIPS etc.
Tyres, Footwear, Conveyor belts, Hoses, Mechanical rubber
goods etc.
RelWood™ can be bent, curved, molded or simply used to
make flowing construction, installations and furniture for
indoor as well as outdoor usage
CHEMICALS
Relab
Linear Alkyl Benzene (LAB)
Detergents
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONMajor Products and Brands 44
MAJOR PRODUCTS AND BRANDS
Business/Brand
Product / Service
Brand Logo
End Uses
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
Recron® Fancyy
Innovative Polyester Filament Yarns
Hi-Strength, Low-shrinkage Sewing threads for apparel,
home and industrial applications
Value-added fine quality fashion fabrics with unique weave
patterns, textures and hand-feel.
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
Hi-bulk fibres for soft-feel & warmth
Sweaters, pullovers, cardigans, shawls & jackets
Eco-friendly fibres made from 100%
post-consumer polyester waste
Apparel & home textiles
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 45
Business/Brand
Product / Service
Brand Logo
End Uses
POLYESTER & FIBRE INTERMEDIATES
Recron®
Spunlace
Recron®
RecoSilk
Speciality polyester fibres
Speciality Polyester Filament Yarns
Recron®FS
Flame retardant Fibres & Yarns
Recron®
Duratarp
Recron®
Safeband
Relpet®
Polyester Fibres with increased
abrasion resistance for better water
proof, tear proof and fade- proof
qualities
Structurally modified polyester fibre
with antimicrobial and antifungal
properties
Polyethylene Terephthalate (PET)
OIL AND GAS EXPLORATION AND PRODUCTION
Crude Oil and Natural Gas
RETAIL
OWNED
Reliance Fresh
Neighbourhood store
Reliance Smart
Supermarket
Reliance Market Wholesale cash & carry store
Reliance Digital
Electronics speciality store
Reliance Resq
Jio Stores
Consumer electronics after sales
service provider
Speciality Store for mobility &
communication
Reliance Trends
Apparel speciality store
Reliance Trends
Women
Apparel speciality store
Ajio
Online fashion store
Reliance Jewels
Jewellery speciality store
Reliance
Footprint
Footwear speciality store
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
Crepe, Rolled Bandages & Surgical Dressings
Packaging for bottled water, beverages, confectionary,
pharmaceutical, agro-chemical and food products
Refining, power, fertilisers, petrochemicals and other
industries
Neighbourhood stores dealing in fresh fruits & vegetables,
dairy, grocery, general merchandise and items of daily use
Supermarket dealing in fresh fruits & vegetables, dairy,
grocery, clothing, footwear, electronics and general
merchandise
Wholesale Cash and Carry stores dealing in grocery, clothing,
footwear, electronics and general merchandise
Consumer electronics stores dealing in home appliances,
computers, mobiles, entertainment, gaming merchandise etc.
Service provider for consumer electronic products
(Maintenance & repair, installation etc.)
Stores dealing in products and services relating to mobility
and communication needs such as smartphones, tablets,
accessories, peripherals etc.
Speciality stores dealing in apparel, handbags, footwear and
accessories for men, women and kids
Indian women wear focused apparel speciality store offering
trendy, high-fashion and well-curated collections of Indian
wear and fashion accessories
Curated fashion online store offering apparels, accessories,
footwear and fashion-tech products for men, women and kids
Fine jewellery with offerings across gold, silver, diamond,
precious stones and other precious metals
Speciality stores dealing in footwear, handbags, backpacks,
luggage, socks, belts, wallets and shoe care products
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONMajor Products and Brands 46
MAJOR PRODUCTS AND BRANDS
Business/Brand
Product / Service
Brand Logo
End Uses
EXCLUSIVE BRAND PARTNERSHIP
Bally
World’s second oldest luxury brand
Shoes, bags and fashion accessories
BCBG Max Azria
Contemporary women’s clothing
brand
Apparel, accessories and footwear
Brooks Brothers
American iconic brand that has
redefined & shaped classic American
style for nearly two centuries
Apparel and accessories for men
Cherokee
Iconic American family lifestyle brand
Apparel and accessories for kids
DC
Diesel
Dune
Ermenegildo
Zegna
Flormar
GAS
American sportswear brand inspired by
skateboarding and snowboarding
Apparel, accessories, footwear and skateboards
Iconic Italian lifestyle brand
Apparel, accessories and footwear
Distinctive fashion footwear &
accessories
Accessories and footwear for men and women
Italian luxury men’s clothing
Apparel, accessories and footwear for men
Leading beauty and colour cosmetic
brand
Italian clothing brand offering quality
products for intelligent, aware
consumers, with an international,
cosmopolitan attitude
Colour cosmetic products
Apparel, accessories and footwear for men & women
Hamleys
The finest toy shop in the world
Toys
Hunkemoller
Leading European lingerie brand
Lingerie, nightwear, swimwear and accessories
ICONIX
Diversified portfolio of fashion and
home brands
Apparel, footwear, accessory and home fashion
Juicy Couture
Casual luxury lifestyle brand
Apparel, accessories and footwear
Kate Spade
Accessible luxury for women
Handbags, small leather goods, apparel and footwear
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 47
Business/Brand
Product / Service
Brand Logo
End Uses
EXCLUSIVE BRAND PARTNERSHIP
Kenneth Cole
Urban fashion & Lifestyle brand that
exudes metropolitan lifestyle of New
York city
Apparel, accessories and footwear
Marks & Spencer
Iconic British lifestyle brand
Apparel for women, men and children, lingerie, beauty and
home décor
MUJI
Iconic Japanese lifestyle brand
Accessories, home, apparel, travel, beauty, stationery etc.
Paul & Shark
Italian luxury and casual sportswear
brand
Apparel, accessories and footwear for men
Payless
Affordable fashion footwear
specialty store
Footwear, handbags and accessories
Thomas Pink
British shirt authority
Apparel and accessories for men
Quiksilver
Premium youth Lifestyle and culture
clothing brand representing action
sports
Apparel, accessories, footwear, skateboards and surfboards
REISS
Roxy
Affordable luxury fashion brand
Apparel, accessories and footwear
Global lifestyle brand, offering
products for every aspect of an active
girl’s life
Apparel, accessories, swimwear and footwear for girls
Scotch & Soda
European couture brand
Shoes, bags and fashion accessories
Steve Madden
Fashion forward Footwear &
Accessories Brand
Superdry
Fashion brand that fuses design
influences from Japanese graphics
and vintage Americana, with the
values of British tailoring
Vision Express
Optical specialty store
Accessories and footwear for men and women
Apparel, accessories and footwear
Spectacles, sunglasses, contact lenses and eyewear care
accessories
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONMajor Products and Brands 48
MAJOR PRODUCTS AND BRANDS
Business/Brand
Product / Service
Brand Logo
End Uses
TEXTILES
OWNED
Only Vimal
Protector
Suitings, Shirtings, Readymade
Garments
Anti-dust, Anti-Microbial, Quick
Stain Release & Anti-Pollen Fabric
Finish Technology
Fabrics, Apparel and Accessories.
Fabrics and Apparel
Only Vimal
Sarees
Sarees
Sarees and Dress Material for Women
Vimal Gifting
Ready-to-stitch, take away fabric in
gift packs
Fabrics
D-Creased
Smooth and Wrinkle-Free Fabric
Finish Technology
Fabrics and Apparel
Cool Moisture-Absorb Fabric Finish
Technology
Fabrics and Apparel
Ready-to-stitch,
Take away fabric
Anti-Microbial Fabric Finish
Technology
Fabrics
Fabrics and Apparel
nice
V2
DEO2
LICENSED
Georgia Gullini
Suitings, Shirtings
Fabrics, Apparel and Accessories
DIGITAL SERVICES
Jio
Connected Intelligence
MyJio
Manage your Jio account
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
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 49
Business/Brand
Product / Service
Brand Logo
End Uses
JioTV
Live and Catch Up TV on the
move
JioCinema
Entertainment at your fingertips
JioMusic
JioMags
Music for you. Anytime,
Anywhere
Premium and Popular
magazines
JioXpressNews
OTT News aggregator app
JioChat
Free Chat, SMS, Voice & Video
Call
JioCloud
Store and access your files from
anywhere
Jio4GVoice
VoLTE & Rich Communication on
all phones
JioMoney
Experience cash-free living
JioSecurity
Protect your phone, secure your
data
JioNewsPaper
Digital Newspapers from 100s
of cities
JioNet
Gateway to India’s largest Wi-Fi
network
JioHealthHub
Your digital health vault
Watch LIVE TV Channels (including HD) on your smartphones
and tablets, Pause & Play and Catch Up on your missed
programs with JioTV
Explore the library of Indian, Regional & International content
across 10+ languages and genres Ad-Free. Download and
watch your favourite videos ofline.
Stream & download unlimited HD Music with Ad-free
experience from one of the largest library of songs across
various languages and genres.
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
Read latest news from 500+ sources in 10+ Indian languages,
personalised to your interests, languages & publications. Stay
updated with Cricket scores, Sensex, Movie reviews & more
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
organised 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 digitising 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 daily newsapers from multiple cities - both Indian and
International. Enjoy a rich reading experience with features
like page flipping, auto-download, search, clip, and highlight
Gateway to blazingly fast WiFI network. Stay always
connected, you'll never stress about data limits or speed
again.
Easy and Secure way to digitally store categorise, manage
and share Health Data
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONMajor Products and Brands 50
MAJOR PRODUCTS AND BRANDS
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
CNBC TV18 Prime
HD
English Business News Channel
Business News with expanded focus on global market
CNN News18
English General News Channel
English language news and current affairs
News18 India
Hindi General News Channel
Hindi language news channel
News18 India
English General News Channel
News from India for Indian diasporas
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
ETVOdiya
Regional News Channel
Oriya news channel
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 51
Business/Brand
Product / Service
Brand Logo
End Uses
TV CHANNELS
News18 Punjab/
Haryana/
Himachal
News18 Tamil
Nadu
Regional News Channel
Regional news for Punjab, Haryana and Himachal Pradesh
Regional News Channel
Tamil news channel
News18 Kerala
Regional News Channel
Malayalam news channel
News18 Assam/
North-East
Regional News Channel
Regional news for North-eastern states
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
Rishtey Cineplex
Movies
Hindi Movie channel
MTV
Youth entertainment
Youth entertainment channel & brand
MTV Beats
Music
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
Sonic
Kids Channel
Comedy destination for kids
Action and adventure entertainment for kids and young adults
Nickelodeon
Junior
Colors Marathi
Kids Channel
Entertainment aimed at pre-school kids
Regional Entertainment Channel
Marathi entertainment channel
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONMajor Products and Brands 52
MAJOR PRODUCTS AND BRANDS
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
Colors Super
Regional Entertainment Channel
Kannada Entertainment channel
History TV18
Infotainment Channel
Factual Entertainment channel
fyiTV18
Infotainment Channel
Lifestyle channel
FILMED ENTERTAINMENT
Viacom18 Motion
Pictures
Filmed Entertainment
CONTENT ASSET MONETISATION
IndiaCast
Multi-platform ‘Content Asset
Monetisation’ entity
DIGITAL CONTENT
Moneycontrol
Finance portal
News18.com
General News 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 financial information, news and in-depth
analysis across asset classes
Real-time coverage, sports updates, entertainment buzz, anchor
blogs & chats and Live TV
Firstpost
Opinions and News portal
Digital newsroom focusing on opinions, powered by expert
writer-editors
VOOT
OTT Video Entertainment
OTT Video entertainment destination
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 53
Business/Brand
Product / Service
Brand Logo
End Uses
INFOTAINMENT
In.com
News and entertainment portal
Content & videos of Network18 entertainment channels and
websites and popular third party websites
Burrp
Lifestyle portal
Local food and restaurant recommendation engine
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 specialising 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
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONMajor Products and Brands 54
PRODUCT FLOW CHART
Natural Gas
Crude Oil
Light Ends
Middle Distillate
Solids/ Fuels
LPG
Propane
Naphtha
Gasoline
Jet/Kero
Diesel
Fuel Oil / CBFS
Coke
Sulphur
Ethane
Ethane/
Propane
EDC
EO
Ethylene
LDPE
HDPE/LLDPE
Propylene
PP
C4's
MTBE
Butene-1
Butadiene
Benzene
C6+
Toluene
Xylenes
VCM
PVC
Salt
Chlorine
Caustic
TEG
DEG
Styrene
SBR
PBR
MEG
PTA
Acetic Acid
LAB
Orthoxylene Paraxylene
Normal Paraffin
Kerosene
PET
Polyester Chips
Filament
FDY
POY
PTY
Staple
PFF
PSF
PET Bottles (Recycled)
Texturised /Twisted Dyed Yarn
Spun Yarn
Wool Viscose Silk Linen
Fabrics
Apparel
Purchased Raw Materials
Partly Purchased Raw
Materials
Existing Products
CBFS
Carbon black feedstock
LLDPE
Linear Low-density Polyethylene
DEG
EDC
EO
FDY
Di-Ethylene Glycol
Ethylene Di-Chloride
Ethylene Oxide
Fully Drawn Yarn
HDPE
High Density Polyethylene
LAB
Linear Alkyl Benzene
LDPE
Low Density Polyethylene
LPG
Liquified Petroleum Gas
MEG
Mono-Ethylene Glycol
MTBE
Methyl Tertiary Butyl Ether
PBR
PET
PFF
POY
Poly Butadiene Rubber
Polyethylene Terephthalate
Polyester Filament Fibre
Partially Oriented Yarn
PP
PSF
PTA
PTY
PVC
SBR
TEG
Polypropylene
Polyester Staple Fibre
Purified Terephthalic Acid
Polyester Textured Yarn
PolyVinyl Chloride
Styrene Butadiene Rubber
Tri-Ethylene Glycol
VCM
Vinyl Chloride monomer
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 55
Aerial view of Jamnagar Complex
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONProduct Flowchart 56
FINANCIAL HIGHLIGHTS
RIL STANDALONE
` in crore
$ Mn 2016-17
15-16
14-15
13 -14
12 -13
11-12
10 -11
09 -10 08 - 09
07- 08
Revenue From Operations
40,870
265,041
251,241
340,814 401,302 371,119 339,792 258,651 200,400 146,328 139,269
Total Income
42,213
273,750
259,062 349,535 410,238 379,117 345,984 261,703 202,860 148,388 144,898
Earnings Before Depreciation, Finance
Cost and Tax Expenses (EBDIT)
8,013
51,965
47,168
40,323
39,813
38,785
39,811
41,178
33,041
25,374
28,935
Depreciation and Amortisation
1,305
8,465
8,590
8,488
8,789
9,465
11,394
13,608
10,497
5,195
4,847
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
4,846
31,425
27,384
22,719
21,984
21,003
20,040
20,286
16,236
15,309
19,458
-
-
105
100
95
90
85
80
70
130
130
3,095
2,944
2,793
2,643
2,531
2,385
2,084
1,897
1,631
501
3,251
3,240
3,236
3,232
3,229
3,271
3,273
3,270
1,574
1,454
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
69
-
-
1,682
43,957
285,062
250,758 212,923 193,842 176,766 162,825 148,267 133,901 124,730
78,313
44,458
288,313
253,998 216,159 197,074 179,995 166,096 151,540 137,171 126,373
81,449
66,321
430,093
393,117 311,815 264,281 232,270 205,493 221,252 228,004 218,673 127,235
44,305
287,319
258,448 190,316 151,122 128,864 121,477 155,526 165,399 169,387
84,889
84,309
546,746
481,674 397,785 367,583 318,511 295,140 284,719 251,006 245,706 149,792
66,139
428,909
338,703 266,847 300,405 249,802 244,757 342,984 351,320 239,721 329,179
24,167
24,121
24,930
23,853
23,519
23,166
22,661
23,365
24,679
25,487
Contribution to National Exchequer
7,926
51,399
43,117
33,322
31,374
28,950
28,197
28,719
17,972
11,574
13,696
KEY INDICATORS
$
2016-17
15-16
14-15
13-14
12-13
11-12
10-11
09-10
08-09
07-08
Earnings Per Share - (`)
[excluding Exceptional item]*
Turnover Per Share - (`)
Book Value Per Share - (`)
Debt : Equity Ratio
EBDIT / Gross Turnover %
Net Profit Margin %
RONW % **
ROCE % **
15
96.9
84.6
70.2
68.0
64.8
61.2
62.0
49.7
49.7
105.3
126
137
817.2
889.0
0.37:1
19.6
11.9
16.8
25.4
775.3 1,053.3 1,241.7 1,149.5 1,037.8
790.5
612.9
464.9
958.1
784.4
668.0
609.8
557.5
507.3
463.2
419.5
401.5
560.3
0.42:1
0.45:1
0.45:1
0.40:1
0.41:1
0.44:1
0.46:1
0.63:1
0.45:1
18.8
10.9
15.1
17.2
11.8
6.7
13.4
12.7
9.9
5.5
12.9
11.5
10.5
11.7
15.9
16.5
5.7
12.8
11.2
5.9
13.4
11.6
7.8
15.5
13.2
8.1
16.4
13.9
17.3
10.5
21.6
20.3
20.8
14.0
28.8
20.3
In this Integrated Annual Report $ denotes US$
1US $ = ` 64.85 (Exchange rate as on 31.03.2017)
* Adjusted for issue of Bonus Shares in 2009-10 in the ratio of 1:1
** Adjusted for CWIP and revaluation
Note: Figures for FY 2016-17 and FY 2015-16 are in compliance with Ind AS
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. MANAGEMENT’S DISCUSSION AND ANALYSIS
57
Page
No.
58
59
Title
Overview
Highlights and Key Events
62
Financial Performance and Review
Business Performance
Refining and Marketing
Petrochemicals
Oil and Gas Exploration and Production
Retail
Digital Services
64
71
81
89
96
103
Media and Entertainment
108 Liquidity and Capital Resources
Sustainable Growth at Reliance – The integrated
approach
Strategic Framework at Reliance
The Integrated Approach
Natural Capital
Human Capital
Intellectual Capital
Manufactured Capital
Financial Capital
Social and Relationship Capital
Reliance's Sustainability Reporting Journey
111
111
114
121
128
137
144
145
151
153 Risk and Governance
161 Awards and Recognitions
163 Glossary
What’s Inside
Macro-economic environment – global and domestic
Brief overview of business performance, achievements during
the year
Financial information (consolidated and standalone) and
discussion on key parameters
Analysis and description of all major business segments of
Reliance covering strategic advantages and competitive
strengths. The discussion structure covers the environment the
business operates 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
Insights into Reliance’s financing strategy covering resource
raising, capital and risk management framework
Analysis and disclosure of Reliance’s approach towards
sustainable and responsible growth through the lens of
International Integrated reporting (“IR”) Framework. It
reflects performance and outcome, stewardship, and inter-
dependencies for the broad base of capitals (natural, human,
intellectual, manufactured, financial, social and relationship) and
communicates the factors that materially affect the ability to
create value over time - short, medium and long-term
Y
e
a
r
l
y
R
e
v
i
e
w
R
e
s
p
o
n
s
i
b
i
l
i
t
y
Provides overall perspectives on key strategic risk and governance
including the strategy to mitigate risk in Volatile, Uncertain,
Complex and Ambiguous (VUCA) business environment. Reliance
strategic platform that enables sustenance of competitive
advantage with effective use of technology
Reliance’s achievements and efforts in multiple areas are
recognised by various domestic and international agencies
l
S
u
s
t
a
i
n
a
b
e
F
u
t
u
r
e
&
G
r
o
w
n
g
i
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
58
MANAGEMENT’S DISCUSSION AND ANALYSIS
Heater of Aromatics Complex at Jamnagar Refinery
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.
OVERVIEW
GLOBAL
The world economy grew at a stable pace of 3.1% in CY
2016, aided by recovery in emerging economies particularly
commodity exporters, while growth in developed markets
remained modest. Increase in oil prices along with other
major commodities like iron ore and copper aided recovery
in global trade towards the end of CY 2016. The uptick in global
trade was led by pickup in import demand in Asia and US which
augurs well for underlying demand trends. While global growth
was stable, markets were focused on geopolitical developments
with change in leadership in the USA, and the UK working on
modalities around its exit from the European Union.
Activity rebounded in the USA after a weak first half of CY 2016,
as the economy approaches full employment. The US Federal
Reserve continued with the interest rate normalisation cycle in
FY 2016-17 by increasing rates twice, in Dec 2016 and Mar 2017.
The global low interest rate and abundant liquidity cycle is likely
to slowly normalise.
INDIA
On the domestic front, India remained the fastest growing
major economy in the world, after surpassing China last year.
Gross Domestic Product growth rate was 7.1% for FY 2016-17,
supported by strong consumption growth and government
spending. Inflation eased sharply led by a decline in food
inflation amidst government’s astute food management,
facilitating a 50 basis points rate cut by the RBI in FY 2016-17
before it adopted a neutral stance. Diminishing vulnerabilities
on the external and fiscal front with Apr-Dec FY 2016-17 current
account deficit at 0.7% of GDP and government’s commitment
to fiscal consolidation reinstated investor confidence in the
economy, resulting in record Net Foreign Direct Investment of
US$35.9 billion in FY 2016-17.
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 59
FY 2016-17 was also marked by two significant economic
measures by the government. Government’s demonetisation
move to counter the shadow economy and promote cashless
economy has boosted digital payments in the country. The
Goods and Services Tax (GST) - constitution amendment bill,
passed by the government, to be implemented from July
1st, 2017 will have a significant impact on the taxation structure
in the country. The reform process would further help boost
India’s position in the global arena.
Global oil demand growth remained robust at 1.6 million barrels
per day in CY 2016 led by a 3.3 % y-o-y growth in demand from
the non-OECD countries. Gasoline demand trends remained
robust contributing around 40% of global oil demand growth.
US, China and India accounted for 60% of the global gasoline
demand growth. Global oil price strengthened in FY 2016-
17, supported by the OPEC non-OPEC co-operation to cut oil
production in the last quarter of CY 2016.
India became the second largest contributor to the global oil
demand growth in terms of incremental oil demand. India also
overtook Japan as the world’s third largest oil consumer (after
USA and China).
During FY 2016-17, India's oil demand grew 5.2% led by strong
consumption demand growth in gasoline (+8.8%) and jet
kerosene (+12.1%). This was underpinned by 9.2% growth in
passenger vehicle sales, 6.9% growth in two-wheelers sales and
21.7% growth in domestic airline passenger traffic. Domestic
diesel demand remained muted at 1.8% as the industrial
cycle lagged consumption. Polymer demand grew by 7% and
polyester demand grew by 3% during FY 2016-17.
With the advent of Jio in the domestic digital services market,
the Indian telecom industry witnessed unprecedented growth
in data consumption. Over a 100 million Jio users propelled
India into the largest mobile data usage market globally, with
monthly data consumption of over 1bn GBs.
HIGHLIGHTS AND KEY EVENTS
RIL’s downstream hydrocarbon businesses delivered a stellar
performance in FY 2016-17. Refining business continued
to register double digit Gross Refining Margin (GRM) and
outperformed benchmark Singapore GRMs. Refining business
was supported by stable middle distillate cracks, benign global
demand growth and optimised crude sourcing. Favourable
naphtha cracking economics, firm domestic demand and higher
volumes in polyester chain underpinned record earnings from
the Petrochemical business.
RIL progressed completion of the ongoing hydrocarbon
projects with the phase wise commissioning of Paraxylene plant
at Jamnagar, making it the 2nd largest producer of PX globally.
During the year, RIL completed the world’s largest and most
complex ethane sourcing project. It commissioned ethane
receipt and handling facilities at its Dahej manufacturing
facilities in a record time of less than three years. The Refinery
Off gas Cracker (ROGC) and downstream projects as well as
gasification linked to Domestic Tariff Area refinery achieved
the installation and mechanical completion during the year
and pre-commissioning and start-up activities are in full swing.
The installation and mechanical completion for the gasification
linked to RIL’s SEZ refinery has also been substantially
achieved. The completion of the hydrocarbon capex cycle will
significantly enhance RIL’s cash flows and impart a high degree
of stability to its earnings stream.
REFINING AND MARKETING – CONTINUED
STRONG PERFORMANCE
Refining and Marketing (R&M) business delivered another
year of double digit GRMs in FY 2016-17. Supportive product
demand environment led by India and China, firm middle
distillate spreads and well-supplied crude markets helped
the R&M business to sustain high margins. RIL recorded GRM
of US$11.0/bbl for the year, highest in last eight years. RIL
continued to outperform Singapore benchmark, with an eight
year high premium of US$5.2/bbl during FY 2016-17.
R&M business registered an EBIT of `25,056 crore (up 6.5%
y-o-y) supported by better volumes, yield management and
robust risk management.
During the year, RIL continued to process challenging and
advantageous crudes. It processed 5 new crude grades in FY
2016-17. RIL’s refineries have now processed over 150 grades of
crude.
RIL continued to build-out its domestic retail network with
1,221 fuel outlets operational as at the end of FY 2016-17. RIL’s
fuel outlets registered significant volume growth with year-
end exit throughput more than double the industry average,
highlighting the superior customer experience and value added
offerings.
The refining business had another
stellar year - achieving record
profits and 8 year high GRM
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 60
PETROCHEMICALS – RECORD
PERFORMANCE ON VOLUME, MARGIN
EXPANSION
Petrochemicals business delivered strong earnings growth led
by volume growth, favourable naphtha cracking economics
and recovery in polyester chain margins. Proactive inventory
management and cost-discipline helped RIL dampen the
transient impact on domestic demand growth during
FY 2016-17.
The petrochemical business posted record earnings with 5 year
high EBIT margin of 14%. The segment EBIT stood at `12,990
crore in FY 2016-17, up by 27.5% y-o-y.
During FY 2016-17, RIL progressed rapidly to enhance
petrochemical capacities, strengthen integration and improve
feedstock security. The new PX capacity will complete the
integration within RIL’s polyester value chain, leading to
improved margins and also strengthen its position in polyester
industry globally. The supply of ethane to RIL’s crackers at
Dahej, Hazira and Nagothane will provide feedstock security
and flexibility enabling it to select the most optimal feed
mix based on market conditions. This will improve the cost
competitiveness of its existing crackers and enable it to
optimise the portfolio in a volatile market environment.
OIL AND GAS EXPLORATION AND
PRODUCTION – CHALLENGING MACRO
ENVIRONMENT
INTERNATIONAL: SHALE GAS
The commodity markets showed improving trend towards the
end of CY 2016. However, weaker Natural Gas differentials in the
Marcellus region along with lower volumes resulted in a setback
during the year leading to lower revenues and EBITDA.
Reliance Holding USA Inc., delivered negative EBIT of (`1,430)
crore in CY 2016 compared to `3,280 crore in CY 2015.
Operational trends remained strong across joint ventures (JVs),
with improving costs and declining capex. Overall volume
trends remained subdued reflecting the impact of forced
curtailment of production at Marcellus and “zero development”
strategy which are being pursued to conserve cash flows and
safeguarding investment returns in a challenging business
environment. Consequently, production (RIL share) was
14.6% lower at 174.0 Bcfe in CY 2016. The business is taking a
cautious approach to resuming development and focusing on
conserving cash and retaining optionality.
Domestic Oil and Gas
During the year, RIL commenced commercial production
from its Coal Bed Methane block (CBM), at Sohagpur (West).
The production from RIL’s Sohagpur CBM fields is expected
to gradually ramp-up over the next 15-18 months making RIL
among the largest unconventional natural gas producers in
India.
Operationally, FY 2016-17 continued to witness lower upstream
production and weak domestic gas price realisations. The
domestic oil and gas production (RIL share) was down 23% to
95 billion cubic feet equivalent. The unfavourable upstream
price environment and declining volumes resulted in negative
segment EBIT for the year at (`131) crore.
RETAIL BUSINESS – SUSTAINING
LEADERSHIP
In FY 2016-17, Reliance Retail registered strong growth with its
turnover increasing by 60.2% to `33,765 crore over the previous
year. The business delivered record profits during the year with
an EBIT of `784 crore, up by 55.6% as compared to FY 2015-
16. During the year, Reliance Retail added 371 stores across
various store concepts. At the end of the year, Reliance Retail
operated 3,616 stores across 702 cities with an area of over
13.5 million square feet and 448 fuel outlets. The robust growth
and operating performance is a reflection of strong business
fundamentals and focused execution by a highly trained and
capable team.
As part of Reliance Retail 2.0 initiatives, AJIO extended its
offering by launching men’s wear, fashion tech and kid’s wear
categories and rolled out various features such as IMPS, EMI,
automated refunds and much more to enhance customer
experience.
Reliance Retail continues to strengthen its International brand
portfolio. During the year, it entered into partnership with Bally
from Switzerland, Scotch & Soda from Netherlands and Flormar
from Turkey.
DIGITAL SERVICES – EMPOWERING
DIGITAL INDIA
Reliance Jio announced the commencement of services with
‘Jio Welcome Offer’ in September 2016. In a short period of 170
days, Jio crossed a milestone of 100 million customers on its all
IP wireless broadband network, reflecting an unprecedented
level of acceptance for any technology company globally.
In February 2017, Jio announced industry redefining tariff
plans as it embarked upon the world’s largest migration from
free to paid services. It announced the Jio Prime Membership
for its initial customers and within a month of announcing the
Jio Prime offer, over 72 million Jio customers signed up for Jio
Prime, making it one of the most successful customer privilege
programmes anywhere in the world.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 61
Within 6 months of the launch of Jio, India became the highest
mobile data user globally with a monthly consumption of over
1 billion GB. This level of growth has been unprecedented on
any mobile network anywhere in the world, and is a testimony
to the comprehensive digital ecosystem that Jio has created.
Jio has created an eco-system comprising network, devices,
applications and content, service experience and affordable
tariffs. It is the only network built as a Mobile Video Network
and providing Voice over LTE technology. This future ready
network can easily deploy 5G and beyond technology in the
next leg.
MEDIA AND ENTERTAINMENT
In the Media business, Network18 Media and Investments
reported consolidated revenue and negative EBIT of `1,491
crore and (`201) crore, respectively, for FY 2016-17 as it
continued to invest in launch of new channels and digital
businesses, while upgrading existing properties and talent.
CNBC TV18 and CNBC Awaaz continued to be the highest
rated channels in the English and Hindi Business News genre
respectively, with both garnering a 58% market share during
market hours. OTT video app VOOT continued to gain traction.
News18.com and Firstpost umbrella brands were extended
into Hindi. Network18 maintained its impetus on penetrating
regional markets. A second entertainment channel ‘Colors
Super’ in the Kannada market was launched to further cement
the group’s pre-eminent position in that market. During the
year, three new regional news channels were launched in
Kerala, Tamil Nadu and Assam/N.E. CNN-IBN was re-branded
and re-launched as CNN-News18.
OTHER CORPORATE HIGHLIGHTS
LIQUIDITY AND CAPITAL RESOURCES
During FY 2016-17, RIL successfully refinanced long-term
financing of US$1.75 billion syndicated loan and US$550 million
club loan aggregating to US$2.3 billion resulting in substantial
interest savings over the remaining life of these loans.
RJIL issued secured long-term INR non-convertible debentures
aggregating to `5,000 crore comprising of `3,000 crore
debentures with maturity of three years and `2,000 crore
debentures with maturity of five years.
In October 2016, US$ 572 million financing was tied up to
partially finance six state-of-the-art Very Large Ethane Carriers
(VLECs) – the vessels being first of their type and size globally.
CORPORATE SOCIAL RESPONSIBILITY
During FY 2016-17, Reliance contributed `674 crore towards
Corporate Social Responsibility (CSR).
CSR initiatives of Reliance are guided by the three core
principles of SCALE, IMPACT and SUSTAINABILITY (SIS). In
order to streamline its CSR initiatives, Reliance has identified
7 focus areas: Rural Transformation, Health, Education, Sports
for Development, Disaster Response, Urban Renewal and Arts,
Culture and Heritage.
Jio School
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 62
FINANCIAL PERFORMANCE AND REVIEW
REVENUE
12.6%
y-o-y (%)
(` in Crore)
,
0
8
1
0
3
3
,
,
8
9
2
3
9
2
,
PROFIT AFTER TAX
18.8%
(` in Crore)
y-o-y (%)
1
0
9
9
2
,
1
7
1
5
2
,
ALOK AGARWAL
SRIKANTH
VENKATACHARI
6
1
-
5
1
0
2
Y
F
7
1
-
6
1
0
2
Y
F
6
1
-
5
1
0
2
Y
F
7
1
-
6
1
0
2
Y
F
“Delivering superior performance in today’s volatile and global environment requires sound strategy and disciplined
execution. Reliance achieved a number of milestones and performance records – demonstrated by solid earnings growth,
EBITDA growth and margin expansion. Reliance has generated record cash profit of `42,800 crore (US$6.6 billion) for
the year.
Across its integrated portfolio, Reliance is executing a number of strategic actions to deliver maximum value from each
business. Reliance is enhancing its cost position and value of its integration between refining and petrochemicals business
and at the same time investing in new growth platforms of retail and digital services. Reliance is well on its way to maximise
returns for shareholders as all its investments in projects and new initiatives come to fruition this year.
During the year, Reliance has transitioned its financial statements reporting in compliance with Ind AS notified by the
Ministry of Corporate Affairs.”
CONSOLIDATED AND STANDALONE
Financial Information – Consolidated and Standalone
Particulars
Consolidated
Revenue from Operations
PBDIT
Cash Profit
Segment EBIT
Net Profit
Cash and Marketable Securities
Tangible and Intangible Assets (Excluding Goodwill)
Gross Debt
* Excluding exceptional item
FY 2016-17
`in crore US$ in billion
50.9
3,30,180
8.6
55,529
6.6
42,800
5.8
37,737
4.6
29,901
11.9
77,226
80.0
5,18,471
30.3
1,96,601
FY 2015-16*
`in crore
2,93,298
49,419
37,686
34,383
25,171
89,969
4,09,353
1,80,665
Standalone
FY 2016-17
`in crore US$ in billion
40.9
2,65,041
8.0
51,965
6.3
40,909
5.9
38,340
4.8
31,425
10.7
69,337
44.3
2,87,319
16.6
1,07,446
FY 2015-16
`in crore
2,51,241
47,168
36,805
34,133
27,384
79,507
2,58,448
1,07,104
Reliance achieved a consolidated turnover of `3,30,180
crore (US$50.9 billion), an increase of 12.6%, as compared
to `2,93,298 crore in the previous year. Increase in revenue
is primarily on account of increase in prices of refining and
petrochemical products partially offset by lower volumes
from E&P business. Turnover was also boosted by robust
growth in retail business which recorded a 60.2% surge in
turnover to `33,765 crore. Brent crude oil price averaged
US$48.6/bbl in FY 2016-17 as compared to US$47.5/bbl in
the previous year. Exports (including deemed export) from
India were marginally higher at `1,47,755 crore (US$22.8
billion) as against `1,46,855 crore in the previous year.
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
63
Strong refining and petrochemicals margin environment
contributed to higher operating profits for the year. Gross
refining margins recorded an eight-year-high of US$11.0/
bbl whereas petrochemicals EBIT margin were at five year
high level of 14.0%. Operating profit before other income
and depreciation increased by 10.8% on a y-o-y basis to
`46,194 crore (US$7.1 billion) from `41,704 crore in the
previous year. Profit after tax (excluding exceptional item)
was higher by 18.8% at `29,901 crore as against `25,171
crore in the previous year.
Revenue from the Refining and Marketing segment
increased by 6.8% y-o-y to `2,50,833 crore (US$38.7 billion)
including inter segment transfers. Refining EBIT increased
by 6.5% to a record level of `25,056 crore (US$3.9 billion),
supported by higher GRM and crude throughput. GRM for
the year stood at US$11.0/bbl as against US$10.8/bbl in the
previous year. RIL’s GRM outperformed Singapore complex
margins by US$5.2/bbl, highest in the last eight years. As at
the end of the year, RIL operated 1,221 fuel outlets in the
country.
Revenue from the Petrochemicals segment increased by
12.2% y-o-y to `92,472 crore (US$14.3 billion) including
inter segment transfers, primarily due to increase in prices
across polymers and polyester chain. Petrochemicals
segment EBIT increased sharply by 27.5% to a record level
of `12,990 crore (US$2.0 billion), supported by favorable
product deltas and marginal volume growth.
Revenue from the Oil and Gas segment decreased by
30.9% y-o-y to `5,191 crore (US$0.8 billion) including
inter segment transfers, the decline in revenue was led by
lower upstream production and lower domestic gas price
realisation. Volumes were lower on account of slowdown
in development activity and natural decline. Consequently,
segment EBIT was negative at (`1,584) crore, as against
`3,630 crore in the previous year. For the year, domestic
production (RIL share) was at 95 Bcfe, down 23% y-o-y and
production (RIL Share) in US Shale business was 174.0 Bcfe,
down 14.6% y-o-y basis.
Revenue from the Organised Retail business grew by
60.2% y-o-y to ₹ 33,765 crore. Key revenue growth drivers
for the year were digital and petroleum retailing segments.
Retail business EBIT grew by 55.6% to ₹ 784 crore for the
year as against ₹ 504 crore in the previous year.
Other income was higher at `9,443 crore (US$1.5 billion) as
against `7,479 crore in the previous year mainly due to profit on
sale of investments.
Finance cost was at `3,849 crore (US$594 million) as against
`3,691 crore in the previous year. The increase was primarily on
account of higher average exchange rate for the year.
Depreciation (including depletion and amortisation) was
higher by 0.7% to `11,646 crore (US$1.8 billion) as compared
to `11,565 crore in the previous year primarily on account of
capitalisation of new projects in the petrochemicals business.
Profit after tax was higher by 18.8% at `29,901 crore (US$4.6
billion) as against `25,171 crore in the previous year
Basic earnings per share (EPS) for the year ended 31st March
2017 was at `101.3 as against `85.4 in previous year.
The Board of Directors of the Company has recommended
dividend of `11.0 per fully paid up equity share of `10/- each,
aggregating `3,916 crore (US$604 million), including dividend
distribution tax.
Reliance’s fixed assets stood at `5,18,471crore (US$80.0 billion)
as on 31st March, 2017. This includes fixed assets of `2,31,152
crore of its subsidiaries mainly in Reliance Jio, Reliance Holding
USA and Reliance Retail.
Capital expenditure for the year ended 31st March, 2017
was `114,742 crore (US$17.7 billion) including exchange rate
difference capitalisation. Capital expenditure was principally on
account of ongoing projects in the petrochemicals and refining
business (at Jamnagar, Dahej, Hazira) US Shale gas and Digital
services business.
Reliance’s gross debt was at `196,601 crore (US$30.3 billion).
This includes standalone gross debt of `1,07,447 crore and
balance in key subsidiaries including Reliance Jio (`47,463
crore), Reliance Holding USA (`32,816 crore), Recron Malaysia
(`1,586 crore), Reliance Gas Pipelines Limited (`1,450 crore) and
Independent Media Trust Group (`1,307 crore).
Cash and marketable securities were at `77,226 crore
(US$11.9 billion) resulting in net debt at `1,19,375 (US$18.4
billion).
RIL’s standalone revenue from operations for FY 2016-17
was `2,65,041 crore (US$40.9 billion) an increase of 5.5% on
y-o-y basis. Standalone profit after tax was at `31,425 crore
(US$4.9 billion) an increase of 14.8 % against `27,384 crore in
the previous year. Basic EPS on standalone basis for the year was
`96.9 as against `84.6 in the previous year.
Indian Accounting Standard
The Ministry of Corporate Affairs (MCA) notified Companies
(Indian Accounting Standard) Rules 2015 enabling
implementation of Ind AS. Pursuant to this notification RIL and
its subsidiaries, associates and joint ventures have adopted Ind
AS (the converged IFRS) with effect from April 1, 2016.
Accordingly, the standalone and consolidated financial
statements for the year ended 31st March, 2017, and
31st March, 2016 including transition date balance sheet as at
1st April, 2015 have been prepared in accordance with Ind AS.
The effect of transition to Ind AS has been given in detail in
Financial Statement section.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
64
BUSINESS PERFORMANCE
REFINING AND MARKETING (R&M)
HITAL R. MESWANI
C BORAR
SRINIVAS
TUTTAGUNTA
P RAGHAVENDRAN
HARISH MEHTA
“Refining segment recorded its highest ever EBIT of `25,056 crore, led by 8 year high GRM of US$11.0/bbl. The unparalleled
operational excellence and world class assets at Jamnagar complex provide RIL a sustained competitive advantage. RIL
continued to outperform the Singapore refining benchmark by US$5.2/bbl.
RIL leveraged the flexibility provided by the superior configuration of the refining assets at Jamnagar to optimise crude and
product slate, to capture higher netbacks. RIL expanded its domestic fuel retailing business by re-commissioning 1,221 fuel
outlets and achieved industry-leading throughput per outlet. The installation and mechanical completion for the Gasification
project linked to DTA refinery has been completed in the quarter ended 31st March, 2017 and the pre-commissioning and
start-up activities are in full swing. The installation and mechanical completion for the Gasification linked to RIL’s SEZ refinery
has also been substantially achieved and pre-commissioning activities are expected to start soon. On completion, this project
will enhance energy self-sufficiency for the Jamnagar complex. During the last year RIL focused on expeditious completion of
construction work of Petcoke gasification project to enhance energy self-sufficiency."
` 25,056 crore Refining segment recorded its highest ever EBIT, led by 8 year high GRM
Panoramic view of Jamnagar Refinery
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 65
STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH
Refinery
configuration
Crude selection and
sourcing
Continuous
innovation
RIL’s refinery configuration and logistics
infrastructure availability allows crude
portfolio optimisation with changing
market dynamics. With inherent design
flexibility, RIL optimises the crude
diet, sourcing the most advantageous
crude globally. During FY 2016-17, 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. Five new crude grades
were processed in FY 2016-17. RIL
also entered into a long-term supply
contract for additional heavy crude.
RIL continuously focuses on
debottlenecking, capacity
enhancement, yield and product
quality improvement to enhance its
competitive strengths. Examples in
FY 2016-17 include:
DTA refinery has improved its
capability to produce gasoline to
meet BS VI specifications.
Enhancement of Propylene
Recovery unit capacity for
improving propylene recovery.
Upgradation of hardware facility to
process opportunity crudes.
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 complexity level of Jamnagar
refinery will increase to great extent
on commissioning of Coke Gasification
project. 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 evolving market dynamics.
The commissioning of new paraxylene
unit has provided further integration
with petrochemical enabling higher
value addition.
Operational
excellence
Logistics and
supply-chain
Market
access and
responsiveness
Energy
Independence
RIL excels in asset
optimisation while
maximising the returns. It
maintains the highest safety
standards with continuous
efforts on improving the
energy efficiency and
minimising operating &
maintenance cost. RIL
ensures adoption of latest
developments in technology
for improving the asset
reliability and avoid any
unplanned outages, thus
enabling high on-stream
factor.
RIL has state-of-the art
logistics infrastructure to
support the largest refining
hub at Jamnagar. It includes
marine facilities, Rail and
Road loading facilities and
pipeline connectivity. Marine
facility enables berthing of
wide range of ships from
Very Large Crude Carriers
(VLCC) to small chemical
carriers. This provides
significant benefit on
crude and product freight
optimisation.
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 Rotterdam, Ashkelon and
Singapore locations allow
RIL to move its selling point
closer to consumption hubs
and improve responsiveness
to market needs.
With commissioning of coke
gasification at Jamnagar,
RIL will upgrade low value
coke into high value syngas
leading to enhanced self
sufficiency of energy
requirement at Jamnagar
supersite. Syngas from
gasification will substitute
imported LNG, enabling
energy cost savings.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
66
MARKET ENVIRONMENT
ROBUST OIL DEMAND GROWTH SUSTAINED EVEN
WITH RISING OIL PRICES
Global oil demand grew 1.6 mb/d in CY 2016, after a near
record growth of 2.0 mb/d in the previous year, despite crude
oil prices trending higher. Both OECD and Non-OECD countries
contributed to oil demand growth. Higher demand for light
distillates supported the healthy growth in oil demand.
During CY 2016, about 45% of the global oil demand growth
came from China and India. Chinese oil demand growth
moderated to 0.4 mb/d in CY 2016 (0.7 mb/d in CY 2015). In
China, strong growth in gasoline demand was underpinned by
a 14% growth in car sales. Diesel demand contracted on weaker
industrial activity in China, Government discouraging coal
production to curb pollution and shutting down of industrial
units prior to the G20 summit in Hangzhou supported demand.
India was the second largest contributor to demand growth
with 0.3 million barrels per day of growth in CY 2016. India’s
demand growth was led by gasoline, jet-kero and LPG. The
growth in gasoline demand was driven by strong passenger
vehicle and two-wheeler sales, which grew by 9% and 7%
respectively in FY 2016-17.
Oil Prices
(IN MMT)
Brent
Dubai
WTI
80
70
60
50
40
30
20
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
6
1
-
y
a
M
6
1
-
l
u
J
6
1
-
p
e
S
6
1
-
v
o
N
7
1
-
n
a
J
7
1
-
r
a
M
Asian Cracks
US$/bbl
Naphtha
Gasoline
Jet
Gasoil
Fuel Oil
Q1
Q2
Q3
Q4 FY 2016-17 FY 2015-16
0.3
0.7
-1.9
1.1
14.5 11.6 14.6 14.8
11.1 11.1 12.3 11.3
10.5 11.0 12.1 11.8
-4.3
-9.5
-2.7
-5.1
0.1
13.9
11.5
11.3
-5.4
2.9
19.2
12.5
12.0
-6.7
OPEC GAINS MARKET SHARE
Global oil supply grew by 0.4 mb/d in CY 2016, significantly
lower than the nearly 3 mb/d growth in CY 2015. OPEC gained
significant market share in CY 2016 as OPEC supply (including
Natural Gas Liquids) grew by 1.1 mb/d. and non-OPEC supplies
fell by 0.8 mb/d y-o-y. Biofuels contributed 0.1 mb/d of growth
in CY 2016. Decline in non-OPEC production has been led by
the US where supply fell by 0.5 mb/d.
Supply growth from Saudi Arabia, Iran and Iraq was 1.4 mb/d in
CY 2016. Russian production also increased by 0.3 mb/d in
CY 2016. Production from Nigeria fell by 0.3 mb/d due to
frequent disruption from militant attacks.
HIGHER INVENTORY CAPPED PRICES
Brent crude oil prices averaged US$48.6/bbl in FY 2016-17,
marginally higher than US$47.5/bbl in FY 2015-16. Oil prices
rose in H1 CY 2016 on lower production due to Canadian
wildfires and disruptions in Nigeria. The production cut by OPEC
and some non-OPEC members in Q1 CY 2017 had little impact
on OECD crude and product inventories. These higher inventory
levels and also additional supplies have capped the upside on
crude oil prices. Further, the higher production outlook for US
shale oil has been acting to undermine efforts to tighten the
crude markets.
BENCHMARK REFINING MARGINS MODERATED ON
LOWER LIGHT DISTILLATE CRACKS
Strong refining margins in early CY 2015 enticed refiners
globally to run at a higher utilisation as well as maximise
gasoline production in early 2016 too. Global refinery utilisation
at 83.5% in 2016 was flat y-o-y albeit higher than the 5 year
average of 82.6%. This sustained utilisation driven supplies with
relatively lower demand growth and inventory build-up during
the year moderated refining margins from exceptional highs in
the previous year.
LIGHT DISTILLATES
Light distillate cracks receded from the record high reached
in FY 2015-16. Gasoline demand contributed around 40%
of global oil demand growth, with the US, China and India
contributing 60% to the global gasoline demand growth.
US gasoline demand was strong in CY 2016 with 3% increase in
passenger miles travelled, supported by improving passenger
car sales.
Total car sales in China grew by ~14% in CY 2016 despite higher
taxes and higher fuel and credit costs. SUV sales registered
strong growth throughout the year, at an average rate of 44%
contributing to the higher gasoline demand growth.
However, post higher gasoline margins in early 2015, refiners
maximised gasoline production leading to higher gasoline
supply in the later part of CY 2015 as well as in CY 2016.
Gasoline stocks in the US, the world’s largest gasoline market,
were at a 5 year high for the most part of CY 2016 capping
gasoline cracks globally.
Demand for naphtha from petrochemical sector remained firm
due to stable end product demand and favorable naphtha
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 cracking economics with narrower spread between Naphtha
and LPG. However, gasoline-naphtha spread was lower y-o-y
reducing the gains from naphtha blending into gasoline.
MIDDLE DISTILLATES
Middle distillate cracks marginally weakened in FY 2016-17 over
the previous year. Globally the demand growth for diesel was
relatively subdued despite moderate economic growth. Diesel
demand in China contracted for the first time since 2009 on
economic slowdown. India’s diesel demand grew at a slower
pace of 1.8% during the year.
Jet fuel demand growth was aided by robust 7% growth
in global international passenger traffic and 6% growth in
domestic air travel. Indian domestic aviation is a bright spot in
the global aviation market with growth of 22% y-o-y (Revenue
Passenger Kilometers) in FY 2016-17. Jet fuel supply grew
during the year as compared to a decline in global gasoil supply
indicating that refiners took advantage of the better regrade
(jet fuel – gasoil differential).
FUEL OIL
Fuel oil demand grew y-o-y for the first time in the last 10
years on strong bunker fuel demand with pick-up in shipping
activities. Fuel oil supply, however was tighter due to lower
utilisation at Latin American refineries. Exports from Russia
also reduced due to addition of secondary processing units
and adverse tax measures for fuel oil exports, which added
to the deficit. Fuel oil cracks also strengthened with the OPEC
oil output cut which is targeted mainly towards medium and
heavy crude grades.
DEMAND GROWTH TO CONTINUE
Global oil demand growth is expected to average 1.3 mb/d in
CY 2017 slowing down from the relatively high growth rates
seen at 2.0 mb/d in CY 2015 and 1.6 mb/d in CY 2016. Increased
shale oil production in US is expected to provide additional
supplies. Gasoline demand growth is expected to remain
supported in the current low oil price scenario. Gasoil demand
is expected to firm up on better global economic outlook.
Refining capacity additions are expected to lag global product
demand growth for major part of CY 2017, supporting high
refinery utilisation and product cracks.
RIL’s GRM for the year stood at
US$11.0/bbl-8 year high
67
ILLUSTRATION: New Distribution Model for Lubes
Business (Relstar)
Despite having a retail outlet network and almost a decade
long market presence, it was difficult to attract quality channel
partners due to low sales volumes. As a consequence, overall
Lubes volumes had stagnated for the last few years.
Action Taken: RIL worked with an interested party to create
a centralised Super Distributor for the Northern region. The
team worked together to design operating model, draft the
processes and execute the entire on-boarding in record time.
Outcome: Compared to erstwhile high of 40 kilo litre, new
channel partner has already clocked over 100 KL every month
reaching March exit volumes of 125 KL. This has not only
provided the much needed boost in Lubes volumes, but has
also helped in receiving multiple enquiries from the market for
building similar channel setup in other parts of the country.
RIL CONTINUED TO OUTPERFORM REGIONAL
BENCHMARKS
RIL achieved double digit GRM for the second year in a row. At
US$11.0/bbl refining margins were at an 8 year high. Premium
over Singapore GRM was also at a 8 year high of US$5.2/bbl. RIL
achieved superior refining margins due to firm cracks, proactive
risk and yield management, favourable crude sourcing and
lower freight of crude. Better performance against benchmarks
was underpinned by RIL’s ability to shift to higher value
product yields, using a wider selection of crudes and focus on
operational efficiencies.
RIL processed 5 new crude grades this year leading to over
150 crude grades processed till date. During the year, 65
different crude grades were processed. Over the years RIL has
demonstrated its ability to process challenging crude grades
with sulphur content of over 5%, Total Acid Number (TAN) of 5
(mg KOH/g), viscosity of ~ 5000 cst and an American Petroleum
Institute (API) gravity as low as 100.
RIL fully utilised the flexibility available in its refining system to
procure competitive feedstock and optimise product yields to
improve margins.
Refining Margin vis-à-vis Global Benchmark
Regional Margins
(US$/bbl)
Singapore Complex
RIL GRM
Rotterdam (Brent)
USGC (WTI)
Source: Reuters
FY 2016-17 FY 2015-16 FY 2014-15
5.8
11.0
5.3
8.7
7.5
10.8
6.3
11.8
6.3
8.6
5.4
12.4
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 68
FINANCIAL AND OPERATIONAL
PERFORMANCE
Financial performance*
FY 2016-17
(`in crore)
2,50,833
25,056
10.0%
FY 2016-17
(US$ in billion)
38.7
3.9
Revenue
EBIT
EBIT (%)
FY 2015-16
(`in crore)
2,34,945
23,534
10.0%
%
Change
6.8%
6.5%
*Consolidated basis
REFINERY SALES (FY 2016-17)
(IN MMT)
Exports
Captive
Domestic (Retail/Bulk + PSU + Industrial)
15.3
10.9
41.7
FY 2016-17 revenue from the R&M segment increased y-o-y to
`2,50,833 crore (US$38.7 billion), reflecting higher average oil
prices and volumes during the year. Refining EBIT increased by
6.5% y-o-y to a record of `25,056 crore, supported by strong
product demand, lower freight rates and effective crude
sourcing and robust risk management.
Redefining challenges, delivering results
Focus continued in processing tougher opportunity crudes
while producing superior product quality. GE Proficy
SmartSignal has been deployed in rotary equipment to improve
availability, reliability, efficiency and profitability.
Secondary processing unit capacity stretched with
technological up-gradation, best in class operating and
maintenance practices to maximise high value products such as
Gasoline and Reformate.
DOMESTIC MARKETING
MARKET ENVIRONMENT
For FY 2016-17, the overall industry transportation fuel volumes
increased to 23 MMT in Gasoline up 10% and 75 MMT in Diesel
up 3%. With muted growth from the direct segment, bulk of the
growth has been registered by the retail outlets.
The total number of retail outlets in India has increased to
over 59,500, as state owned oil marketing companies continue
to expand their network. The coming year will continue to
see expansion of networks by existing players as well as new
entrants.
PETROLEUM RETAIL
RIL continued to recommission its network, achieving a strength
of 1,221 fuel outlets by the year end. RIL’s fleet customer count
grew four fold to 1.6 Lakh during the course of the year.
Supported by network and growing fleet customer count,
RIL outlets registered an outstanding Pump throughput of
more than double the industry average in March 2017. This
remarkable achievement of high throughput is also attributed
to RIL’s Quality and Quantity of Fuels, superior service and value
added offerings at the retail outlets.
OPERATING STRATEGY AND VALUE PROPOSITION
RIL continues to serve its family of satisfied customers with
a unique Quality and Quantity fuelling experience delivered
through stringent quality checks at various stages of product
movement right up to 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.
Innovative Credit solutions to attract Fleet Operators and Easy
working capital finance for Channel have been rolled out in tie-
up with major Financial players. Cash loading solution through
Mobile apps and over 3,600 branches of major banks has vastly
improved customer convenience.
In the coming year RIL is looking at setting new standards of
fuelling experience using technology and further strengthening
enduring bonds with millions of consumers.
LEVERAGING TECHNOLOGY INTEGRATION
During the year, RIL bolstered its fleet management offerings by
introducing Mobile based applications, empowering customers
with convenience of controlling and monitoring truck fleet on
the go.
The fleet proposition was also integrated with Jio Payment
Gateway providing customers the flexibility of 24X7 funds
transfer for loading their fleet account.
Aligning to the vision of ‘Digital India’, the payment eco-system
at RIL pumps has been overhauled to seamlessly accept
multiple modes of payment. RIL's network is ready to offer the
next generation dynamic pricing solutions to create unique and
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
69
Despite the stiff market environment and margin pressure due
to competition, RIL has registered 52% y-o-y volume growth to
528 KT in FY2016-17. On account of superior technology and
better service standards, RIL has become one of the priority
supplier for the Indian Railways. Increased sectoral focus has
allowed RIL's foray in fisheries, infrastructure and Steel & Coal
Mines (SCM) which will drive RIL's volume growth over the next
few years.
AVIATION TURBINE FUEL (ATF)
At present, India is the ninth-largest civil aviation market in the
world and is likely to become the third-largest by 2020. With the
high growth trajectory of the aviation industry, the demand for
Jet fuel in India grew by a robust 12.1% in FY 2016-17, driven by
a 22% growth in domestic passenger traffic.
Reliance Aviation is one of the fastest growing ATF supplier in
India. The throughput handled has grown by 21% y-o-y in
FY 2016-17. RIL has leadership market share at 30% of the
airports it operates in. RIL's range of services encompasses
storage, into-plane, and hospitality besides operations and
maintenance services. Besides strengthening presence at
existing 25 airports, RIL is striving to maintain its growth
momentum by expanding its network, augmenting its
resources and strengthening its supply chain.
RIL has presence in 25 airports and
refuels 425 flights a day
GAPCO
Pursuant to the Sale agreements signed by Reliance Exploration
& Production DMCC (“REPDMCC”), an indirect wholly owned
subsidiary of Reliance Industries Limited (“RIL”) and TOTAL, for
the sale of the entire 76% interest held by REPDMCC in the
Mauritius-incorporated Gulf Africa Petroleum Corporation
(“GAPCO”), REPDMCC, TOTAL and GAPCO have obtained
requisite regulatory approvals, consents and successfully
completed the sale transaction.
CAPEX AND GROWTH PLAN
PETCOKE GASIFICATION
The Petcoke gasification project is one of the largest clean fuel
projects globally. On commissioning, Jamnagar complex will be
largely energy self-sufficient. The gasifier will convert petroleum
coke, the lowest value refinery residue, into high value syngas.
Syngas has applications in production of hydrogen for ultra-
low sulfur products, as cogen fuel for power and steam and as
heater fuel for offgas cracker, while freeing up high value off-
gases. The Petcoke gasification project will minimise external
fuel dependency at the Jamnagar site, making it less vulnerable
to LNG price volatility. The installation and mechanical
completion for the Gasification project linked to DTA refinery
convenient options for RIL's customers. With digitisation gaining
good traction, the fleet management program plans to embark
on Virtual Card feature, by linking the card with owner / driver
mobile number, enabling quicker fleet transactions.
OUTLOOK
For FY 2017-18, Reliance will primarily focus on two key areas:
Establish a pan India footprint by expanding network into
unrepresented and new markets.
Sustain leadership position in Pump Throughput by
enhancing customer experience and creating unique value
propositions.
ILLUSTRATION: Petro Retail’s turnaround after
demonetisation Setback
Unexpected scrapping of old high denomination notes (HDN),
acceptance of old currency notes for an extended period by
PSUs fueling stations and ensuing cash crunch, led to 51% and
31% dip in High speed diesel/ Motor Spirit sales volumes.
Response: RIL responded through launch of Retail selling
price scheme, offering HSD at a discount of ` 1 from the
market price across all outlets to regain lost sales volumes and
provide assurance to customers and channel partners on RIL’s
ability to bounce back strongly.
Outcome: RIL not only recovered lost sales but also registered
61% growth in HSD sales vs pre-demonetisation period (353
TKL in March 2017 vs 219 TKL in October 2016). Furthermore,
this scheme provided ancillary benefit of informing customers
about RIL’s price parity vis-a-vis competition.
HSD – DIRECT
The overall 3% growth in HSD consumption of Industry has
been dragged down by the bulk segment. Unlike transport,
most of the other segments consuming HSD have either de-
grown or have had a tempered growth at best. The situation
is as a result of improved operation efficiency, increased
electrification and higher emphasis on green fuel [CNG].
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
70
has been completed in the quarter ended 31st March, 2017 and
the pre-commissioning and start-up activities are in full swing.
The installation and mechanical completion for the Gasification
linked to RIL’s SEZ refinery has also been substantially achieved
and pre-commissioning activities are expected to start soon.
CORPORATE SOCIAL RESPONSIBILITY
CSR INITIATIVES AT JAMNAGAR
During FY 2016-17, RIL undertook several socio-economic
development interventions to benefit the surrounding
communities. Major focus areas at RIL Jamnagar involved
education initiatives, community development and health
related programs. Other focus areas included livelihood support
and empowerment as well as promotion of arts, culture and
heritage.
RIL provided education to about 1,000 students in
government schools, computer coaching classes to around
885 students and 1,200 books to libraries providing a
literacy platform to students.
RIL distributed around 10,000 pairs of shoes among 34
schools and 10,497 school starter kits in 126 schools.
With an aim to achieve “zero open defecation’ status in
villages, RIL provided financial support for construction of
around 1,023 toilets.
The health team organised 6 eye checkup camps and a
total of 3,728 patients were screened. Those diagnosed to
have mature cataract were treated.
The Moti Khavdi Medical Centre (MKMC) of Reliance has
registered a total of over 2.5 lakh OPD cases since its
inception.
RIL’s veterinary hospital through its various services and a
mobile veterinary van treated 8,281 animals.
RIL, as a part of livelihood support and empowerment,
employed around 1,300 local vendors and provided
support to local women through skill enhancement.
Impact:
Provision of better education and basic amenities to
students.
Promoting skill development and digital literacy among
students.
Improved access sanitation through construction of
toilets leading to better health.
Strengthened community healthcare.
Animal healthcare improved through veterinary
hospitals.
Women empowerment and entrepreneurship
development.
Gasifier Control Centre
Gasifier-Cooling Tower
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
71
PETROCHEMICALS
NIKHIL R. MESWANI
VIPUL SHAH
"RIL achieved record EBIT of ₹ 12,990 crore (up 27.5% y-o-y) and production of 24.9 MMT in the Petrochemicals Segment
for the year, even though the global petrochemicals industry continues to face a highly uncertain business environment.
Consolidating its leadership position, Reliance progressed rapidly on initiatives to enhance petrochemical capacities,
strengthen integration, improve feedstock security and bolster sustainability.
PX expansion at Jamnagar was commissioned successfully in a phased manner. All six Very Large Ethane Carriers (VLECs) have
been delivered to RIL and the crackers have started receiving shipments of Ethane from the USA. The installation of ROGC
and downstream projects at Jamnagar have been completed during the year and pre-commissioning and start-up activities
are in full swing.
Continuing to augment its customer centricity and consumer orientation, Petrochemicals business has progressed further
on the expression of ‘Chemistry for Smiles’. Reliance has strengthened the customer supply interface on digital platforms and
further empowered customers and channel partners through e-commerce transactions on smart devices.
To minimise any impact on environment, 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."
` 12,990 crore Petrochemicals EBIT was at a record level in FY 2016-17
Hazira Manufacturing Division
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 72
STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH
Global scale
Integration
Leadership
RIL is amongst the world's leading
producer of petrochemicals with global
scale and capacities across polymers,
polyester, fibre intermediates and
elastomers.
RIL has 10 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, and
manage the impact of external shocks.
Reliance is the first Company globally
to conceptualise large scale imports of
Ethane from North America as feed stock
for its cracker portfolio in India through
Very Large Ethane Carrier (VLECs).
RIL also has a diversified raw material
slate, with both naphtha and gas based
crackers, which helps mitigate risk
involved with raw material 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, and is a source of a
renewable and sustainable competitive
advantage.
Reliance’s Petrochemical business caters to the requirements
of a vast range of industrial and consumer products
manufacturers. From fibres to plastics and polymers to
industrial chemicals, the Company’s petrochemical products
have applications in a number of industries such as agriculture,
healthcare, pharmaceutical, textiles and apparels, plastic
products, automotive, telecommunication and infrastructure.
Reliance manufactures a wide range of petrochemicals
including:
OLEFINS
Olefins are unsaturated open-chain hydrocarbons having at
least one double bond. It includes compounds such as Ethylene,
Propylene, etc. These products form the input materials for
polymers and other industrial chemicals.
POLYMERS
Polymers are chemical compounds made of small molecules
arranged in a simple repeating structure to form a larger
molecule. For example, Polypropylene (PP), Polyethylene
(PE), Polyvinyl chloride (PVC), etc. These products are used in
applications such as plastic products, packaging materials,
pipes etc.
FIBRE INTERMEDIATES
It includes chemical products which form the input materials
for the polyester and textile industries. Products such as Purified
Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) are
used as raw materials for manufacturing polyester products
while Paraxylene (PX) is used in the production of Terephthalic
Acid (PTA).
POLYESTERS
Polyesters are the most popular synthetic fibres primarily
being used in textile and plastic products. It includes
Polyester Filament Yarns (PFY), Polyester Staple Fibres (PSF)
and Polyethylene Terephthalate (PET). PFY and PSF are
predominantly used in manufacturing of textiles while PET is
used majorly in food packaging, in manufacturing of bottles for
beverages.
ELASTOMERS
Elastomers are natural or synthetic polymers with high viscosity
and elasticity. The most common form of elastomers are rubber
products. RIL’s products include Butadiene, Poly-Butadiene
Rubber (PBR) and Styrene Butadiene Rubber (SBR).
The primary feed for the Petrochemicals business comes from
the light-end of the crude refining process such as naphtha,
propylene, reformate and Natural Gas. The Company leverages
its leadership position in the refining streams through
conversion of naphtha, propylene, reformate and LPG to value
added products that are sold globally.
More importantly, every business in the Petrochemicals
segment uses chemistry and chemical formulations to help
create a diverse range of end-products that make modern life
more convenient and efficient.
Reliance Petrochemicals harnesses the power of chemistry,
to help produce goods that bring smiles to the face of end
consumers.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 MARKET ENVIRONMENT
FY 2016-17 witnessed recovery in global energy prices from
the lows of FY 2015-16. This was reflected in petrochemical
feedstock and product prices. Profitability of naphtha based
producers remained at historical highs for most of the year.
Volatility in feedstock prices for Methanol to Olefins (MTO), Coal
to Olefins (CTO) and Propane Dehydrogenation (PDH) units
has impacted profitability resulting in lower utilisation rates for
these units.
OLEFINS AND POLYMERS
Global demand for ethylene increased by 3.3% y-o-y to 146
million tonne (MMT) in 2016. Global ethylene operating rates,
which are indicative of the margin environment, improved
marginally on a y-o-y basis to 89.3% in 2016, sustaining above
the five-year average of 86.9%. Operating rates are expected to
dip marginally in 2018 as new capacities in US come online.
Demand by end use
Demand : 146 MMT
GLOBAL ETHYLENE SUPPLY/DEMAND 2016
Production by feedstock
Production : 146 MMT
Naphtha
Ethane
Propane
Butane
Others
Source: IHS Markit
9% Ethytlene Di-Chloride
6% Ethyl Benzene
7% Others
42% Polyethylene
36% Ethylene Oxide
62%
15%
9%
6%
8%
The global ethylene upcycle is expected to continue in 2017
with prices likely to remain high in 2017 on account of tight
supply. Addition of capacities in US, based on low cost ethane
from shale gas production could soften prices from 2018.
New propylene derivative capacities in Asia has resulted in firm
propylene prices during the year. However, addition of 6-6.5
million tonnes per annum new global capacities in 2017 may
result in well-supplied propylene markets in the near-term. On-
purpose Propylene units contributed almost 17 MMTPA (17%
of global production) in 2016. On-Purpose propylene units are
expected to remain as marginal suppliers and moderate their
operating rates depending upon economic viability based on
changes in feedstock prices.
Though crude oil prices have recovered, cash cost economics
of naphtha based crackers remained favorable against crackers
based on other feedstocks. Though the expected advantage
of US gas crackers has reduced over time due to low crude oil
prices, it still supports these projects given healthy margins
and strong demand. Higher increase in feedstock prices for
CTO, MTO and PDH units compared to crude have impacted
Reliance is the world's
sixth largest producer of PP
73
competitiveness of these units as against conventional liquid
crackers.
GLOBAL POLYOLEFIN AND PVC DEMAND
(In MMT)
Polypropylene
Polyethylene
Poly Vinyl Chloride
Ethylene
Propylene
Source: IHS Markit
CY 2016
66
92
41
146
101
CY 2015 % growth
5%
4%
2%
4%
3%
63
88
41
141
98
Global thermoplastics market in 2016 was estimated at 243
MMT. PE accounted for 38%, PP 27% and PVC 17%, of the
market. Demand for the PE, PP and PVC combined grew by 3.6%
during 2016 driven by India and China. Last 5 year CAGR for
global polymers (PE, PP and PVC) demand was 3.9%. The global
demand for these polymer products is estimated to grow at a
CAGR of 4.1% over 2016-20 period.
PRICE AND MARGIN ENVIRONMENT
Polymer chain
Crude oil price recovery was supported by OPEC/non-OPEC
production cut agreement. Average naphtha prices in Asia were
lower during the year as higher cracker turnarounds impacted
demand. On a y-o-y basis, Asian Naphtha and ethylene prices
were lower by 3-4%. Incremental ethylene availability, however,
will be limited in Southeast Asia during 2017 as most of the new
plants are likely to start in second half of 2017.
Southeast Asia polymer margins
(US$/MT)
HDPE-Naphtha
PP-Propylene
PVC-EDC-Naphtha
Source: Platts and ICIS
FY 2016-17 FY 2015-16
768
306
440
721
252
531
Polymer margins remained healthy during FY 2016-17, as end
product prices remained firm with stable demand. On a y-o-y
basis, PE margin corrected by 6% from exceptionally high levels
reached last year. However, PE margins continue to remain
significantly above the 5 year average. PP margins weakened
y-o-y, with incremental supply and firm propylene prices. PVC
margin strengthened on account of continuing strong demand
and tight supply coupled with relatively weaker Ethylene
Dichloride (EDC) prices. Incremental demand for PVC continues
to outpace incremental capacity for the second consecutive
year.
Polyester and Fibre Intermediates
Polyester sector witnessed healthy recovery during the year
as compared to the challenging market environment in the
previous year. The sector remained resilient despite geopolitical
uncertainties and muted Chinese demand. However, the
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 74
operating environment was supported by favorable demand-
supply fundamentals. Integrated polyester chain margins
remained stable for the year.
largely stable y-o-y with marginal decline in margin. CY 2016
witnessed improved operating rates with no capacity addition
and estimated demand growth of 2.5 MMT.
Downstream polyester margins improved led by POY and PET.
Polyester fibre and yarn markets witnessed strong demand pull
and a stable price environment with balanced market dynamics.
Capacity growth was 1.7 MMT compared to demand growth
of 1.67 MMT during CY 2016. Operating rates of fibre and yarn
plants in Asia remained high at around 80% during the year.
International cotton prices improved 5% y-o-y during 2016.
Cotton to polyester price differential remained wide, favoring
polyester in blending thereby reducing share of cotton in
the fibre basket. Global cotton acreage in 2016-17 (Aug-Jul)
is expected to further decline due to a prevailing low price
environment from last year.
Global PET prices for the year remained flat around US$932/
MT, relatively weaker fibre intermediate prices supported 6%
improvement in PET margins. Global PET demand remained
supportive backed by emergence of new end use applications
and firm beverage consumption demand from major developed
and emerging economies. CY 2016 PET capacity increased by
1.4 MMT y-o-y against a demand growth of 0.9 MMT.
Polyester and fibre intermediates margins
(US$/MT)
PX
PTA
MEG
POY
PSF
PET
Source: Platts and ICIS
FY 2016-17
383
100
428
248
194
141
FY 2015-16
365
104
440
227
196
133
During the year, Fibre intermediates prices were largely stable,
supported by higher crude oil prices and steady demand from
downstream industry. Further, plant outages and shutdowns
provided stability to the fibre intermediate markets.
PX market witnessed strong demand supported by healthy
downstream PTA market and tight supplies owing to outages.
This year witnessed increased Asian Contract Price (ACP)
settlements after two years of disruption. Consequently, prices
remained stable y-o-y, while deltas increased 5%. CY 2016
witnessed demand growth of 1.2 MMT with no capacity
addition except Reliance’s new PX capacity in Jamnagar which
was commissioned towards the end of the year.
PTA markets strengthened on account of healthy operational
efficiencies supported by strong downstream demand. Bullish
sentiments in Chinese futures market from June onwards and
balanced supplies aided prices. Functional PTA capacities in
China were running above 85% during the year. PTA prices were
MEG markets softened marginally with 3% y-o-y decline in
prices and margins. MEG prices remained volatile during the
year with unplanned outages in the beginning of the year.
Also, prices recovered towards the end of the year, supported
by speculative demand, tight supplies and robust downstream
demand. Net global capacity addition of 1.6 MMT in CY 2016
was higher than the estimated incremental demand growth of
1 MMT.
Elastomers
The global capacity of butadiene remained stable at 15.3
MMTPA with average operating rate of around 75% in CY 2016.
The key application for butadiene is in the manufacturing of
PBR and SBR. Butadiene prices were volatile through the year
particularly with scheduled and unscheduled shutdown of
naphtha crackers and spike in natural rubber prices due to
floods in Thailand.
PBR and SBR demand are directly linked to growth in
automobile and tyre sector. During CY 2016, global passenger
tyre sales driven by replacement market grew at 3% on the
back of higher vehicle miles driven. Commercial vehicles tyre
production has recovered and demand is likely to increase by
3% during 2017, after marginal improvement in 2016. With
limited capacity additions in near future for synthetic rubber
and growing demand, the operating rates are expected to
improve.
DOMESTIC SCENARIO
Overall, petrochemical demand growth was impacted in the
short-term with reduced cash circulation. Demand across
product categories returned to normalcy by the end of the year.
RIL’s deep rooted connect with its customers proved to be
useful during this period. The business acted proactively
to ensure an optimum product mix to meet the customer
requirements. While managing the efficiency in operations,
efforts were put in to ensure efficient inventory management.
This helped RIL maintain a robust supply chain and thereby
ensured a minimal impact on the business overall.
Polymers
India’s polymer market registered 7% growth y-o-y driven by
increasing per capita GDP, rising middle class income levels,
increased spending on infrastructure and thrust on consumer
packaging, durables and automobiles sector. India is among
the world’s fastest growing polymer markets with a five-year
CAGR of 8.4%. India is the second largest contributor to
polymer demand in Asia. Despite strong growth over the last
few decades, the domestic market remains under-penetrated
compared to other Asian developing countries. RIL’s new
capacities will cater to growing demand in Indian market.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 Polymer demand continued to be healthy during FY 2016-17.
PP demand grew by 3% y-o-y with a good demand across all
sectors including raffia packaging, non-woven, multifilament,
automotive, hygiene applications and appliances sector. PE
demand was higher by 8% due to firm demand from flexible
packaging, moulded products and paper/woven sacks
lamination packaging sector. PVC demand registered highest
growth rate of 10% y-o-y with demand mainly driven by pipe
and calendaring sector.
Polyesters
The healthy recovery in International polyester market also
reflected in domestic market. In India, polyester demand
witnessed 3% growth y-o-y, led by PET (+6%), and Polyester
Filament Yarn (+3%). Polyester filament demand was driven
by strong textiles demand and high growth in Fully Drawn
Yarn supported by better demand for school uniforms, denim
and circular knitted fabrics. Polyester Staple Fibre demand
was largely stable amid steady offtake from non-wovens and
auto upholstery segments. Domestic cotton prices increased
35% y-o-y owing to tight availability, which was favorable for
polyester blending.
PET demand was supported by healthy end use demand and
restocking. However, it was impacted by restrictions imposed
on sale of certain pharmaceuticals formulations and drought
across country forcing bottling plants to curtail operations.
Elastomers
Indian butadiene demand grew by 15% to 265 KT during the
year as against an installed capacity of 550 KTPA. The excess
production is expected to cater to export markets. Demand for
PBR in India grew marginally to 198 KT and is expected to grow
at 7-8% in annually in the medium-term. Consumers response
to RIL’s new PBR products and services has been favorable with
wide acceptance in both tyre and non-tyre applications. India’s
demand for SBR is estimated at 270 KT and is likely to grow at
8-10% annually in the medium-term. RIL’s new SBR product has
been successfully placed in the domestic market.
FINANCIAL AND OPERATIONAL
PERFORMANCE
FINANCIAL PERFORMANCE*
FY 2016-17
(`in crore)
92,472
12,990
14.0%
FY 2016-17
(US$ in billion)
14.3
2.0
Revenues
EBIT
EBIT (%)
* Consolidated basis
FY 2015-16
(`in crore)
82,410
10,186
12.4%
%
Change
12.2%
27.5%
FY 2016-17 revenue from the Petrochemicals segment
increased by 12.2% y-o-y to `92,472 crore (US$14.3 billion),
primarily due to increase in prices across polymers and
polyester chain products. Petrochemicals segment EBIT
increased sharply by 27.5% to `12,990 crore (US$2.0 billion),
75
supported by favorable product deltas and marginal volume
growth. Petrochemicals EBIT margin improved by 160 bps to a
five year high level of 14.0%.
Reliance’s overall petrochemicals production in India during
FY 2016-17 was at 24.9 MMT.
POLYMER PRODUCTION
(Production in MMT)
PP
PE
PVC
Reliance has an overall market share of 33% in the Indian
polymer market.
FY 2016-17
2.65
1.09
0.72
FY 2015-16
2.80
1.06
0.72
Reliance is the world’s sixth largest producer of PP. During
FY 2016-17, the Company produced 2.7 MMT of PP and has
a pre-eminent position in the domestic PP market with 49%
share.
Reliance is the leading PE producer in India with 22% market
share in overall PE market. Reliance produced total PE of 1.1
MMT during the year and has market share of 16% in HDPE,
29% in Linear Low Density Poly Ethylene (LLDPE) and 29% in
Low Density Poly Ethylene (LDPE).
Reliance’s total PVC production was at 0.7 MMT and it has 23%
market share in the domestic market.
POLYESTER AND INTERMEDIATES PRODUCTION
Polyester production
(Production in MMT)
FY 2015-16
POY
0.77
PSF
0.63
PET
0.80
RIL polyester production during the year increased by 4% y-o-y
with gains in PET production, mainly from its new plant
at Dahej.
FY 2016-17
0.80
0.64
0.85
Fibre intermediates production
(Production in MMT)
PX
PTA
MEG
RIL’s overall fibre intermediates production increased by 7%
y-o-y with significant gains in PTA production with the ramp-up
of new capacity at Dahej.
FY 2015-16
2.33
3.34
0.73
FY 2016-17
2.29
3.92
0.69
During the year, RIL commissioned new PX project in
phased manner at Jamnagar, Gujarat. The plant is built with
crystallisation technology which is highly energy efficient and
environment friendly. With the commissioning of the new PX
capacity, RIL became the world’s second largest PX producer.
With commissioning of these new capacities across polyester
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 76
chain, Reliance has consolidated its position as world’s largest
integrated polyester company.
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 capture higher
value addition within the system, while non-traditional markets
were developed for better price realisation. PTA supplies were
concentrated near production site to enhance profitability
through optimal logistics cost.
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 and adds
value to life. Since chemistry is the foundation of Reliance
Petrochemicals, Reliance refers to this 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.
Elastomer/ chemicals production
(Production in MMT)
Butadiene
PBR
SBR
FY 2016-17
0.19
0.12
0.08
FY 2015-16
0.19
0.11
0.06
Creative expression of Brand Essence for Reliance
Petrochemicals
The DNA of
adventure has RIL’s
Polyesters in it
The DNA of life has
RIL’s Polymers in it
The DNA of nation
building has RIL’s
PetChem products at
its core
The DNA of the next
generation wood lies
in RIL’s sustainable
products.
Reliance produces the raw-
materials needed to make
high quality adventure
sport equipment. This helps
people push the boundaries
of human achievement.
Water is a vital part of our
everyday life. Reliance is
playing its role to ensure
that everyone in India has
access to water. Specialty
polymer formulations help
make durable all-weather
pipes that helps transport
water wherever it is needed.
Reliance produces the
materials that are used as
secondary reinforcement for
making stronger roads. This
helps connect the nation
and boost the economy of
the country through long-
lasting infrastructure for
efficient transportation.
RelWoodTM is a superior
product that looks like
wood, feels like wood but
is much stronger. It is made
using patented German
technology that blends
Material and Interfacial
Sciences. RelWoodTM does
not require any trees to
be felled, ensuring the
environment is preserved.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 77
ILLUSTRATION: Relwood™ – Innovating Sustainable
Product development for wood replacement
The Development: Relwood™ is superior product which looks
like wood, behaves like wood but is much stronger than
wood. It is a unique environmentally-friendly composites
developed out of natural silicates, polymer and specialised
blend of additives. It is durable, water-resistant, fire retardant,
UV and termite-resistant product and can replace wood in
all its applications. It is highly flexible unlike wood and can
also be bent, curved or molded for construction of beautiful
contemporary furniture.
Outcome: Sustainable product and eco-friendly alternative for
Wood
ELASTOMERS
Polybutadiene rubbers (PBR)
Reliance is the only company in world offering three different
types of High Cis Polybutadiene rubbers manufactured
using different Ziegler Natta catalysts: Cobalt, Nickel, and
Neodymium.
NEW PRODUCT DEVELOPMENTS
Reliance has continued to add new products to its range of
deliverables to customers.
POLYMERS
Reliance’s geotextiles and geogrids products have been
successfully used in stabilisation of railway tracks in different
regions.
Mulch film has been used for cotton cultivation at different
places resulting in better growth of plants, enhancing
productivity.
Reliance has successfully completed research trials of
PP non-woven fruit cover on Litchi. These trials have
demonstrated a 25% increase in yield.
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 strives to remain competitive and agile in a dynamic
world. It has developed various new and innovative products
based on its deep understanding of changing consumer needs.
RIL continued to strengthen Recron® product portfolio and
developed variety of new products such as Recron® Linen,
Sparkle Linen having the aesthetic linen appearance and
used in circular knits trousers and suits.
Recron® Kooltex – moisture management yarns used for
active wear.
RIL extended its Co-Branding for sewing threads and
strengthened Recron SHT to new partners.
Nagothane Manufacturing Division
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 78
Unique NdBR grade Cisamer T 700 has been successfully manufactured and is being commercialised. This product is being tested/
used by industries for low rolling resistance tires/conveyor belt applications besides being used as a replacement for other PBR.
Transforming RIL Petrochemical business, building an agile organisation
R&M
Naphtha
propane
C3/
Reformate
Cracker
C2/ C3/ C4
Ethane
Ethane project
Petrochemicals
Polymers
Elastomers
Polyesters
PE
PP
PVC
SBR
PBR
Aromatics
PTA, MEG
Fibres, PET
Integrated Value Chain
Deliver a lasting value
proposition to customers
Opportunity in asset base
Manage risks across cycles
Global business
process
Reliance Management
Systems
Integrated SCM
CRM
R-HR
World-class IT
& analytics
APO
Price Mgmt. System
Forecasting Tools
SAP-BPC
Global Scale Value Chain
Client Focus Marketing
Innovation and R&D
Robust product portfolio
Low Cost to serve
High fill and fulfillment
Diverse customer base
Nation-wide presence
Global exports
PARC, RTC
International JVs
Customer experience centre
ILLUSTRATION: Plasticulture
Encouraging Plasticulture – Plasticulture is an innovative
farming technique which refers to use of plastic materials in
agricultural applications. It involves advanced plasticulture
crop cultivation techniques like green-house, mulching, silage
bags, vermi beds, azolla bed, pond lining, sprinkler irrigation,
crop covers, NW fruit covers etc. RIL’s plastic culture centre
creates awareness and helps increase adoption amongst
farmers.
Outcome: Increased yields with better quality of fruits and
vegetables. Higher exports and increased disposable income
in the hands of farmers.
ILLUSTRATION: Touching and transforming lives of
marginalised communities
Harka Devi has been working at RIL's post-consumer PET
packaging collection partner – M/s Jenex Exterprises, Gurgaon
for the last 16 years. She helps in recycling PET bottles. Many
such workers are engaged in a variety of jobs such as bottle
collection, segregating, sorting, cleaning and flaking after
which collected materials get converted into a commercial
product. At 60 years of age, Harka has a stable job which helps
to meet her needs and build savings for her future.
Outcome: Reliance has enhanced the livelihood of unskilled
people like Harka Devi, empowering them with such jobs.
More than 1.4 lakh people have been benefited.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
CAPEX AND GROWTH PLAN
1.
PX Project RIL commissioned PX plant in phased manner
at Jamnagar SEZ. With the commissionning of new PX
capacity, RIL has become the world's second largest
PX producer with 9% of global capacity and 11% share
of global production. The PX capacity, along with the
upcoming new 0.7 MMPTA MEG plant will strengthen
polyester chain integration with earlier commissioned PTA
and polyester expansions.
2.
ROGC Project RIL is setting up a new Refinery Off-Gas
Cracker (ROGC) at Jamnagar. The Cracker project has a
unique configuration as this world scale plant is tightly
integrated with RIL’s refineries and will use refinery off-gases
as feedstock. The project comprises 1.5 MMTPA ethylene
cracker along with downstream facilities for producing
LDPE, LLDPE and MEG. This cracker will have one of the
lowest cost positions globally. Additionally, flexibility to crack
Propane will help optimise feed mix further in a volatile
market environment. PE and MEG volumes produced at
Jamnagar will cater to the growing demand of Indian
and global markets. This further strengthens Reliance’s
integrated product portfolio across polymer and polyester
chain. Reliance has completed installation of cracker and
downstream projects at Jamnagar during the year and pre-
commissioning and start-up activities are in full swing.
3.
Ethane project Reliance is the first company globally to
conceptualise large scale imports of ethane from North
America as feedstock for its cracker portfolio in India. The
project involves seamless integration of several elements
across a complex infrastructure value chain. This includes
securing ethane refrigeration capacity in the US Gulf coast,
Dahej Manufacturing Division
79
delivery of dedicated Very Large Ethane Carriers (VLECs) to
carry ethane from the US Gulf Coast to the West Coast of
India, construction of ethane receipt and handling facilities,
pipelines and upgrade of crackers (to receive ethane) at
Dahej, Hazira and Nagothane manufacturing facilities.
The crackers at Dahej, Hazira and Nagothane have
undergone required modifications to process ethane as
feed in their units. Ethane receipt, handling and cracking
facilities have already been commissioned at Dahej in a
record time of less than three years. Ethane is already taken
as feed in Dahej and Hazira cracker.
The 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 expansions are world-scale and use state-of-the-art
technology, to secure top-quartile 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.
DIGITISATION
Reliance has strengthened the customer supply interface
on digital platform, empowered customers and channel
partners through e-Commerce transactions on smart devices.
Digitisation has facilitated information sharing on mobility
platforms and sales force enablement on e-CRM mobile
applications for efficient operations and effective customer
engagement. To enhance agility, productivity and efficiency of
service levels, critical business approvals have been moved to
mobility platforms.
Reliance has also embraced automation and paperless
operations by implementing solutions like digitally signed
invoices, ePOD (Electronic Proof of Delivery), auto service
certification for transporters and automation of credit and debit
notes for customers and Electronic Data Interchange (EDI) with
shipping lines. Along with this, the Company has undertaken
digitisation of supply chain planning processes to make
petrochemical value chain Responsive, Demand Driven with
“Quantified” Decision Making. This is to maximise integrated
value across businesses to improve contribution and enable
minimum human intervention for order processing. Digitisation
of pricing was implemented to enable system based policy
driven pricing leading to harmonised pricing cascade across
petrochemical business.
For mitigating the cyber security risk due to proliferation of
assets, business expansion and focus on B2C, Reliance has
placed strong emphasis on information security. In the area of
fleet risk management, a machine learning solution on Vehicle
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
80
Tracking System was implemented by Reliance for distribution
safety of liquids as well as solids.
Effective incorporation of digitisation has indeed provided visibility
to segment and sector level leadership through dashboards on key
business parameters to steer business effectively.
CORPORATE SOCIAL RESPONSIBILITY
With the view to promote community development, the
petrochemical locations of RIL undertook community
initiatives in and around the areas of operation. The focus areas
included education, health and safety initiatives, women and
youth empowerment and other community development
programmes.
More than 3,300 patients were registered for treatment
in Reliance’s HIV and Tuberculosis control centre at Mora
village, Surat and over 12,000 patients were examined in
OPD in the year 2016-17.
RIL Hazira organised eye check-up camp for community in
Damka village which benefited 746 villagers, 97 cataract
surgeries were done and 506 spectacles were distributed.
Khushi clinic which includes facilities like examination by
doctor, OPD management, general awareness on health
– personal hygiene and counselling for de-addiction
benefited about 3,455 people in the year 2016-17.
The mobile medical unit initiative by RIL Vadodra
Manufacturing Division served 15 villages around and
registered about 14,364 OPDs.
RIL VMD distributed water jugs, educational flex printed
boards, floor mats and dustbins in Anganwadis which
benefited more than 2,500 students.
The mission zero malnourishment project initiated in RIL
Nagothane with an aim to eradicate malnutrition has
helped children to achieve normal status.
RIL organised various education and career guidance
programmes across all its locations to motivate students for
further education.
Impact:
Enhanced quality of education, Career guidance and
skill development of youth.
Improved access to health care services through special
camps.
Improved community awareness about health and
hygiene.
Youth development and empowerment.
Very Large Ethane Carriers (VLECs)
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
OIL AND GAS EXPLORATION AND PRODUCTION
81
P. M. S. PRASAD
AJAY KHANDELWAL
2016-17 was a significant year for RIL’s oil and gas business with the commencement of Commercial production from the
Coal Bed Methane (CBM) block in Sohagpur (West), Madhya Pradesh. The CBM project is India’s largest surface hydrocarbon
project. With the commissioning of the CBM fields, RIL is set to become one of India’s largest producer of Unconventional
natural gas. The new policy for marketing and pricing of CBM notified by the Government of India has provided a major
boost to the country’s CBM Sector.
“Keeping Wells Flowing” has been the maxim for Reliance KG D6 fields. With the use of innovative production management
techniques, RIL has been successful at extending the life of wells and ensuring field uptime at par with global industry
benchmarks.
In the prevailing weak commodity price environment, Reliance’s focus has been to preserve value in the Shale Gas business
through high grading of the portfolio and reducing operating costs.
RIL’s CBM project is country’s first large-scale unconventional natural gas project.
Gas Gattering Station (GGS) in Coal Bed Methane Block
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 82
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.
Materiality in
unconventional
hydrocarbon business
Significant
infrastructure on the
east coast
Safety
Partnerships
With the commissioning
of the Sohagpur Blocks in
Madhya Pradesh, Reliance
is set to become among
the largest producer of
unconventional natural gas
in India.
Material presence in US
Shale Gas in Marcellus and
Eagleford Plays through 3
Joint Ventures.
KG D6 fields commissioned
in 2008 are India’s first and
till date only producing
green-field Deepwater oil &
gas production facility.
Monetisation of remaining
discovered resources
will utilise the existing
infrastructure.
Over 9 years of safe
operation, with safety record
amongst the best in the
world since commencement
of production in Deep-water
block KG-D6.
Partnerships with global
majors in conventional as
well as unconventional
hydrocarbon plays.
Partnership with BP
combining RIL’s project
execution expertise and BP’s
deep water exploration and
development capabilities.
ILLUSTRATION: Promoting Safety & Operational
Risk culture amongst contract workforce
ILLUSTRATION: Mitigation of Cathodic Protection
(CP) discontinuity in subsea facility
Reliance set principles for operating assets requires to be
effectively communicated to all employees including contract
workforce to achieve conformance of safety and operational
risk requirements.
Action Taken: Employee Adoption Drive (EAD) Program
is a process designed to effectively communicate Safety &
Operational Risk requirements to contract workforce and to
identify required competencies to meet the conformance
levels. This process facilitated a mechanism for all Reliance
employees (mentor) of O&M discipline at facility level, to
adopt group (5-10 Nos) of contractual employees (mentee)
to effectively communicate safety and operational risk
requirements, assess competencies , identify gaps & develop
capabilities to implement until the targeted conformance
levels is met.
Outcome: Ever increasing safety culture.
Subsea Production facilities have interfaces to dis-engage
from the network to facilitate well intervention activity. In
harsh subsea conditions sometimes cathodic protection
network continuity gets lost between structures which
leads to increased corrosion at interfaces. Corrosion leads
to damaging of structure integrity and making it difficult to
disengage.
Action Taken: An in-house designed tool was developed and
installed on subsea structure which allowed restoration of
electrical continuity, and localised corrosion was abated.
Outcome: Enabling smooth well intervention process in a
timely manner.
MARKET ENVIRONMENT
2016 was an eventful year for the global oil & gas industry.
Crude prices hit the lowest levels since 2003. Brent averaged
US$44.8/bbl in 2016 as compared to US$54.3/bbl during the
same period in 2015 and ranged from a low of US$27.1/bbl to a
high of US$57.9/bbl. Average Gas prices at Henry Hub declined
to US$2.5/million british thermal units.
Major factors which influenced price of crude in 2016 include
oversupply, strengthening of US dollar, increase in US crude
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 83
stock, and delayed production cut decision by OPEC. Fall
in crude prices resulted in lower revenue realisation for oil
exporting countries.
In light of the low prices in November 2016, OPEC announced
its first cut in production since 2008 and the first deal including
non-OPEC since 2001. Global oil prices recovered post the
production cut announcement of OPEC/Non-OPEC.
Nearly US$620 billion of projects through 2020 are estimated to
have been deferred or canceled as a result of the downturn, and
the appetite for long-term and complex major capital projects
has waned. Most of these projects are in deep-water, LNG and
oil sands.
US MARKET
Commodity prices witnessed increased volatility on changed
demand-supply dynamics and geo-political issues. Prices
tested multi-year lows before stabilising at higher levels. The
benchmark prices for West Texas Intermediate (WTI) crude oil
dropped to a multi-year low of US$30.6/bbl in February 2016
and bounced back towards the end of CY 2016-17 on reduced
supplies. Average price of WTI for the CY 2016 was US$43.3/bbl,
a fall of 11% y-o-y. US Natural Gas prices remained volatile on
growing supplies and storage overhang. Henry Hub (HH) prices
remained range bound during the year (HH prices recovered
from the low of US$1.5/Million British Thermal Units (MMbtu) in
March 2016 to an average price of US$3.6/MMbtu in December
2016, led by improved domestic demand and higher exports.)
Average HH was 8% lower y-o-y at US$2.46/MMbtu in CY 2016.
Asian Liquefied Natural Gas (LNG) prices were also subdued
with start-up of Australian LNG projects keeping the market
well supplied.
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
Country
Partner
RIL
Stake
JV acreage
(in acres)
Status
Conventional
KG-DWN-98/3
Panna Mukta
Mid and South Tapti
NEC-OSN-97/2
CB-ONN-2003/1
GS-OSN-2000/1
International
Block 39
India
NIKO - 10%, BP - 30%
60%
3,40,758 2 Producing Fields
FDP approved for R-Cluster, DOC reviewed for MJ & Sats
India
India
India
India
BG - 30% ; ONGC - 40%
BG - 30% ; ONGC - 40%
NIKO - 10%,
BP - 30% Note-1
BP - 30%
2,98,256 Producing Fields
3,63,492 Abandonment underway
30%
30%
60% 10,20,298 DOC reviewed
70%
1,17,622 FDP Submitted for 8 discoveries;
Phase-II Exploration ongoing
India
Hardy - 10%
90%
1,48,263 DOC reviewed
Peru
Perenco - 55%,
PetroVietnam -35%
10%
2,13,746 Withdrawn from Block; Formal assignment awaited
Myanmar UNRD 4%
Myanmar UNRD 4%
96% 35,01,976 Extension for study period sought from MOGE
96% 32,92,159
M17
M18
CBM*
SP(East)-CBM-2001/1
India
SP(West)-CBM-2001/1 India
Shale
Pioneer JV
USA
-
-
100%
100%
1,22,317 Development ongoing
1,23,552 Production started
Chevron JV
Carrizo JV
* Conventional and CBM acreage converted into acres using 1 sq. km. = 247.1053 acres
USA
USA
Pioneer – 46.4%,
Newpek – 8.6%
Chevron – 60%
Carrizo – 40%
45%
1,51,320 Producing
40%
60%
2,24,863 Producing
34,690 Producing
Note 1: NIKO withdrew from Joint Operating Agreement (JOA) from NEC-OSN-97/2 block during 2015 accordingly RIL and BP will assume its Participating Interest (PI). Assignment is under GoI
approval.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 84
FINANCIAL AND OPERATIONAL
PERFORMANCE
FINANCIAL PERFORMANCE – DOMESTIC*
FY 2016-17
(`in Crore)
2,787
(131)
(4.7%)
Revenues
EBIT
EBIT (%)
* Consolidated basis
FY 2016-17
(US$ in million)
430
(20)
%
Change
(34.6)
FY 2015-16
(`in Crore)
4,259
373
8.8%
For FY 2016-17 revenues for the domestic oil and gas operations
declined by 34.6% to `2,787 crore. This was largely on account
of 23% decline in production and reduced gas price realisation.
Consequently domestic upstream operations registered
negative EBIT of (`131) crore.
PRODUCTION PERFORMANCE
Units of
measurement
JV production
FY 2016-17
FY 2015-16
1.52
139.14
0.27
1.08
101.07
0.17
MMBBL
BCF
MMBBL
KG D6
Oil
Gas
Condensate
Panna- Mukta
Oil
Gas
Tapti
Gas
Condensate
RIL’s share of production in India during the financial year was
95.0 BCFe.
MMBBL
BCF
BCF
MMBBL
6.16
62.54
-
-
6.88
68.71
3.27
0.13
KG D6 gas production declined by 27% for the year to 101.1
BCF. Fall in production was mainly due to natural decline in the
fields coupled with sand and water ingress. During the year,
considerable efforts were put in to sustain well offtake points
in D1D3 field to support production sustenance until next
wave of projects and recovery maximisation. Additionally, RIL
commissioned two additional offtake points in D26 (MA) post
successful completion of side track activity. KG-D6 operations
achieved field uptime of 100% which continues to be the global
benchmark for deep water facilities.
Panna-Mukta field produced 6.2 million barrel of crude, a
reduction of 10% on y-o-y basis and 62.5 BCF of natural gas, a
reduction of 9% on y-o-y basis. The fall in production is owing
to natural decline in the field, shut in of wells due to integrity
issues and unplanned shutdown on wellhead platforms for riser
remedial work. Despite multiple asset integrity issues, the major
gains in production were achieved due to better and sustained
production from MA & MB wells, better production optimisation
and sustained production from work-over wells.
ILLUSTRATION: Production Performance Sustenance
Decline in gas production rate due to decline in reservoir
pressure and increased production of water.
Action Taken: The high pressure gas available at surface, is
partially injected in subsea network (>600m water depth), on
continuous basis, at optimal rate.
Outcome: Sustaining the production level even in late life
operation of the field.
OUTLOOK:
KG-D6
In the near term, RIL’s focus is to maintain wells flowing in
its KG-D6 block. This involves continuous field management
optimisation to sustain well count and manage network. RIL
will continue to minimise operating cost without compromising
reliability and sustainability of field operations. As part of the
early monetisation of existing discovered resources in KG D6
Block, efforts are underway to leverage the deflation in markets
for optimising capex for future development. The contracting
process is underway for R-Cluster development with optionality
for use in MJ and Satellite development. RIL’s focus is to obtain
approvals for the development of projects. RIL aims to sustain
production until future projects are commissioned, while
leveraging current market downturn to achieve lowest cost for
future projects.
ILLUSTRATION: To keep wells flowing through
enhanced subsea network performance
Increased liquid hold up in subsea network due to natural
decline in reservoir pressure which lead to production decline
& early wells ceasure.
Action Taken: Injecting surfactant (a type of foaming agent)
to reduce density of the fluid column in the subsea network
which helped to unload the liquid between flow systems and
resulted in reducing backpressure on the flowing wells and
thereby allowing well fluid to flow to surface facilities.
Outcome: Effective handling of flow assurance challenges
in subsea network there by achieving increased well life and
sustaining production during the late life of field.
PANNA-MUKTA
Panna-Mukta is a major contributor to the RIL’s upstream
business. The PSC for this block is scheduled to expire in
December 2019. The JV partners are exploring options to
extend the contract period in line with the Production Sharing
Contract extension policy announced by the Government of
India. The JV partners have been working towards mitigating
asset integrity issues due to aging of the facilities.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 85
TAPTI
During the year, the JV partners completed the process of
handing over Tapti facilities consisting of three platforms
to ONGC. The plug and abandonment of wells and
decommissioning of associated facilities are already under
progress.
CBM (SOHAGPUR EAST AND SOHAGPUR WEST)
RIL’s CBM project is country’s first large-scale unconventional
natural gas project. The scale of the project brings its own
set of execution challenges, primary among them are lack of
infrastructure and challenging terrain.
RIL has completed Phase 1 of the project which included
drilling and completion of more than 200 wells (spread over
450 sq. km.). Phase 1 required setting up of 2 gas gathering
stations along with 8 water gathering stations for collection
and processing of CBM Gas and water respectively. RIL has
laid India’s largest High Density Poly Ethylene gas gathering
network to connect these wells with the gathering stations. RIL’s
CBM project is probably the largest surface footprint project in
E&P sector in India.
RIL has commenced commercial production from its Coal Bed
Methane (CBM) block SP (West)–CBM–2001/1 in March 2017
and is currently supplying CBM for commissioning the Shahdol
Phulpur Pipeline. The production from RIL’s Sohagpur CBM fields
will gradually ramp-up in next 15-18 months making RIL as one
of the largest unconventional natural gas producer in India.
ILLUSTRATION: Optimisation of Artificial lift system,
used for water lifting in Coal Bed Methane (CBM)
wells
To develop capability in artificial lift system to cater to varying
water lifting requirements at different life stages of a CBM well.
Action Taken: By utilising a dynamic pump software, a
balance between pulley size and motor capacity of artificial lift
system was worked out which determined the optimal pulley
ratio for different life stages of CBM well. After verification
of the compatibility of the pulley with the motor hub of the
individual pump system, smaller sizes of pulleys have been
stocked. The smaller sized pulley shall be used in later stage
of the life of a well when dewatering requirement gradually
decreases.
Outcome: Reduction in inventory of different capacities of
Artificial Lift system. (Cost and storage space)
SHAHDOL-PHULPUR GAS PIPELINE PROJECT
Reliance Gas Pipeline Limited, a subsidiary of RIL, has completed
the pipeline laying work for the entire 302 km Shahdol-Phulpur
Pipeline from Shahdol (MP) to Phulpur (UP). With this new
pipeline network the CBM Gas fields are now connected with
the Indian Gas Grid providing access to end consumers.
Marketing and pricing freedom for CBM gas
For the development of alternate sources of natural gas
including Coal Bed Methane, GoI notified marketing and
pricing freedom to the Coal Bed Methane (CBM) on 11th April
2017. The reform measure allows CBM producers to sell the
CBM at Arm's Length Price in the domestic market through a
fully transparent and competitive bidding process with the
objective of obtaining best possible prices. The New Domestic
Gas Pricing Guidelines, 2014 and the Gas Utilisation Policy
shall not be applicable to CBM and it also permits producers to
sell gas to any affiliate, in the event contractor cannot identify
any buyer. RIL has published a Notice Inviting Offer in leading
national dailies and on its website, calling for the bids from the
prospective customers to off-take CBM produced.
NORTH AMERICAN SHALE GAS
OPERATIONS
BACKGROUND
CY 2016 was yet another year of tough market conditions
for the Global Oil & Gas sector in general and for the North
American Shale players in particular. CY 2016 prices were at
lowest levels in a decade; which coupled with higher price
differentials resulted in weak realisations across the industry.
The Industry responded effectively with remarkable cuts in
capital spending and leveraged weak services markets. Prices
recovered only during second half of the year for both oil
and the gas. In the local markets of Texas region, gas and oil
differentials were low leading to better price realisation, but in
the North East US market, gas basis differentials remained high
due to midstream constraints. Expansion of pipeline capacity in
the region has been slower than anticipated.
BUSINESS PERFORMANCE
The Company effectively dealt with macro headwinds.
Development activity was slowed down and capex needs were
kept at minimum levels. Focus was on conserving cash, without
losing optionality on resources. Further, relentless focus was
given on improving operational efficiencies and reducing costs,
by leveraging weak market conditions. This was supplemented
with variable production strategy in Marcellus JVs towards
safeguarding returns in low price environment.
Zero drilling strategy was continued at Carrizo JV and at the
Chevron JV. Activity at the Pioneer JV was brought down from
5 rigs at the start of the year to zero rig operations by end of
Q1 CY 2016. The forced “no rig activity” during CY 2016 allowed
JV partners and RIL to spend considerable effort to optimise
forward development plans that will be implemented starting
in 2017. Significant progress was made in pad optimisation
with Chevron and in improving well designs with Pioneer.
Operational trends remained strong across JVs, with improving
costs and declining Capex. Reliance’s aggregate capital
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 86
investments across JVs stood at around US$200 MM during
CY 2016, reflecting a fall of 78% y-o-y.
Outlook for CY 2017 is more constructive compared to CY 2016.
Industry fundamentals have improved as characterised by
better demand supply conditions (also helped by OPEC
slow down). This should augur well for prices going forward.
The Company is, however, taking a cautious approach to
development ramp-up and remains focused on conserving
cash and retaining optionality. Reliance is pursuing reduced
activity levels even in CY 2017. Zero rigs are in operation across
Marcellus JVs, but is ensuring preparedness for ramp up when
market conditions improve. At the Pioneer JV, partners are
focused on pilot testing new development approach. Thrust
remains on preserving long-term value through high-grading
of development and land portfolio, well cost reduction,
optimisation of well spacing and completions for enhanced
recoveries.
OPERATIONAL PERFORMANCE
The joint ventures drilled 26 wells and put 42 wells on
production, taking cumulative number of producing wells to
1,088 by the end of CY 2016. Drilling and completion activities
were completely stopped in Pioneer JV at the end of Q1 CY 2016.
At Chevron JV, there was no drilling activity, but the JV completed
Drilled Uncompleted (“DUC”) wells.
Gross JV production aggregated at ~1.07 BCFe/d for all 3 JVs,
down 15% y-o-y. Reliance’s share of production and sales were
at 174.0 BCFe and 150 BCFe respectively in CY 2016, compared
to 203.8 BCFe and 171 BCFe in CY 2015. This decline in volumes
was largely due to slowdown in development activities adopted
across JVs in view of challenging market conditions. As the
Marcellus JV implemented variable production strategy for
curtailing production to prevent uneconomic realisation, it also
had an impact on volumes during the year.
FINANCIAL PERFORMANCE
Financial performance of the Shale Gas business was impacted
by strong macro headwinds. WTI oil prices averaged 11%
lower at US$43.3/bbl in CY 2016 while HH Gas prices averaged
8% lower at US$2.46/MMbtu during this period. Also, Gas
and condensate Benchmark differentials remained high
further impacting realisation. Despite Reliance implementing
mitigating measure like proactive hedging while also focusing
on export of Condensates that offer superior netbacks, the
impact of weak prices was offset only partially. For the full
year CY 2016, the realised price was US$2.43/Mcfe which was
19% lower than the average levels in 2015 there by impacting
revenues, earnings and cash flows. Average unit realisation,
observed declining trend during H1 CY16, however with
prices recovering during Q4CY16, realisations were as high as
US$2.85/Mcfe during Q4 CY16 vs. US$2.42/Mcfe in Q4 CY 2015.
Operational efficiencies and 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 7% across JVs, but could offset the impact of lower prices
only to some extent. Consequently, EBITDA of Shale gas assets
dropped by over 61% y-o-y to US$117 million in CY 2016,
reflecting lower realisation and volumes.
PIONEER JV
The Eagle Ford Shale JV with Pioneer faced significant
challenges during 2016. Both production and realisations were
down.
Due to downward trend in WTI, JV stopped all drilling and
Completion activities by Q1 CY 2016. However during early
2016 JV pursued various cost reduction and efficiency
improvement initiatives which included renegotiating services
contracts which brought down the drilling and completions
cost substantially. Time off from Drilling and completion
activities was effectively utilised to analyse performance of
producing wells closely and identify areas of improvement.
Learnings from this analysis is being utilised in optimising
forward development strategy for 2017. Pilot testing of new
well designs and spacing is planned in 2017 with 1 rig being
mobilised end of Q1 CY 2017. Thrust on further reducing well
costs continues.
JV put only 18 wells online during CY 2016, thus the Producing
well count to 630 at the year-end, as compared to 612 well at
the end of CY 2015. Gross JV production was 29% down 181
Bcfe compared to 256 Bcfe in CY 2015, while Reliance share
of net sales volume was 24% down at 72.9 Bcfe, compared to
96.5 Bcfe in CY 2015. Production and sales volumes declined
on account of sharply lower development activity and natural
production decline. However, the share of liquids improved
slightly from 64.6% to 65.2% in CY 2016, as the JV decided to
restart ethane extraction from the Natural Gas Liquid (NGL)
stream on account of improved price realisation. Ethane
extraction helped in recovering loss due to lower prices realised
for gas to some extent.
CHEVRON JV
JV pursued Zero Rig strategy in CY 2016 while it focused
on completing some DUC wells. Remarkable reduction in
operating costs and average well costs were key achievements
during the year. JV delivered remarkable reduction reflecting
increased execution efficiency on pads, water transportation
and procurement gains. Thrust was on optimising forward
development through pad optimisation and land portfolio
optimisation efforts.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 87
Producing well count improved to 376 at the year-end,
as compared to 346 wells at the end of CY 2015. Gross JV
production remained stable at 166 BCFe, despite slowdown in
activity which is reflective of improved operational efficiency
and strong well performance. Reliance share of Net Sales
volume stood at 56.7 BCFe, compared to 56.5 BCFe in CY 2015.
JV is pursuing zero rig development while working towards
1st quartile on various performance parameters for 2017 and
making well inventory robust and economical at lower gas
prices.
CARRIZO JV
In view of the prevailing challenging price environment in
the North East region, the Carrizo JV had decided to defer
development activities and stay focused on optimising
production from existing wells in the Northeastern
Pennsylvania region in 2015/2016. Hence the JV continued to
pursue ‘zero development’ and ‘variable production’ strategy.
JV managed volumes as a function of price/netback by shut-in
of wells in low price scenarios, while maintaining well integrity.
However, during 2016 overall curtailment of production was
lower than that in 2015 as realisations improved towards 2nd
half of CY 2016. This was reflected in higher volumes achieved
in Carrizo during CY 2016 as compared to 2015.
Gross JV production of 43 BCFe was 16% higher y-o-y, while
Reliance share of net sales at 21 BCFe, reflected a 13% growth
y-o-y.
Initial development activities in the Northeastern Pennsylvania
(NEPA) region have matured and infill drilling in the NEPA
region and potential development of acreages in the C-counties
provides opportunity for future growth.
UPDATE ON ARBITRATION AND OTHER
LEGAL ISSUES
DOMESTIC GAS PRICING ARBITRATION
Following the continued delay on the part of the Government
of India in notifying the gas price for the block KG-DWN-98/3
(‘KG D6 Block’) in accordance with the formula Government had
approved, 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’).
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.
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 COST RECOVERY ARBITRATION
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 for KG D6 Block 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 – BP and Niko
served an arbitration notice on the Government on 23rd
November, 2011 (‘Cost Recovery Arbitration‘). Parties have filed
their respective pleadings before the Arbitral Tribunal and are
in the process of completing the arbitration proceedings.
PUBLIC INTEREST LITIGATIONS
Three public interest litigations have been filed before the
Hon’ble 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; (ii) quashing the Government’s decision to
approve the certain gas price formula, and (iii) termination
of PSC for KG D6 Block for Contractor’s failure to achieve the
committed production. The Company has submitted that the
underlying issues in the PILs are already subject matter of Cost
Recovery Arbitration and the Gas Price Arbitration. Petitioner in
one of the PILs has recently filed an application for amendment
of the petition, which is yet to be heard by the court.
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
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. Following an
initial merits hearing in May 2012, the Tribunal passed a number
of final partial awards, largely in the Claimants’ favour.
Thereafter, the Tribunal by majority issued a final partial award
(“FPA”), and separately, two dissenting opinions in the matter
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 88
on 12 October 2016. Claimants have challenged certain parts
of the FPA before the English Courts and the English court has
initiated steps to effect service of the Challenge proceedings
upon the Government.
Once award on merits becomes final and absolute, Parties
will be heard by the Tribunal on the Cost Recovery Limit (CRL)
increase request of the Claimants and quantum. Given the
complexity of issues involved, the hearings on CRL increase
and quantum are expected to 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.
YEMEN ARBITRATION
Considering the deteriorating security situation in Yemen,
consortium of Reliance Exploration & Production DMCC
(“Reliance”) and Hood Energy Limited (“Hood”) 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 Hood initiated Arbitration
proceedings against Yemen Government under the terms of the
PSAs and the arbitration hearings have been concluded in 2016
and the Parties are presently awaiting Tribunal’s award.
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 witnesses is to be cross examined
by NTPC.
GAS MIGRATION ARBITRATION
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. Following
the issue of the Shah Committee’s report, Government sent a
Notice dated 4 November 2016 to the Contractor entities of Block
KG-D6 demanding remittance of US$ 1.55 bn purportedly on
account of alleged gas migration from ONGC’s blocks, to be paid
within 30 days. RIL, on behalf of all constituents of the Contractor
for Block KG-D6, filed a Notice of Arbitration on 11 November
2016 and the arbitration proceedings are presently underway.
CORPORATE SOCIAL RESPONSIBILITY
During FY 2016-17, RIL undertook numerous need based
activities to benefit the surrounding communities. RIL's
contribution is mapped under the broad areas of education,
health, social infrastructure development, environment,
promotion of sports, response and relief operations in the event
of natural disasters, etc.
RIL provided scholarship to underprivileged and
meritorious students, and provided computer aided
learning facility to over 9,500 students.
RIL organised a cardiac health camp and a health
awareness camp for senior citizens which involved
participation of 316 patients and 100 senior citizens.
RIL, as a part of humanitarian assistance, provided
physiotherapy treatment and special education in
Dhirubhai Ambani Early Intervention and Rehabilitation
Centre to about 68 physically challenged children and
adults, distributed nutrition kits to over 400 HIV vulnerable
children and contributed to Yanam Old Age Home via
monetary means.
RIL promoted rural youth sports by organising inter-village
volleyball tournament among 26 teams of different villages,
inter-sports and cultural meet in 10 schools involving about
400 students, co-sponsoring regional sports and state
level basketball, organising sports camps for around 105
children, etc.
Impact:
Creation of a healthy, cleaner and safer schooling
environment.
Increased health awareness among local villagers and
improved health conditions.
Improved sanitation across the rural areas through
construction of toilets leading to better health
outcomes.
Promotion of rural youth sports encouraging children.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
MAJOR BUSINESSES
RETAIL
89
SUBRAMANIAM V.
BRIAN BADE
DAMODAR MALL
AKHILESH PRASAD
JOHN WILCOX
DARSHAN MEHTA
GOPALAKRISHNAN
SANKAR
SUNIL NAYAK
KAUSHAL NEVREKAR
Reliance Retail has been one of the key catalysts in the growth of modern retail in India. With its pan India presence, Reliance
Retail has attained a leadership position in the industry that is capable of delivering unmatched customer experience at a
scale comparable to none.
Reliance Retail has once again delivered strong revenues and profits for the year. The performance is a reflection of strong
business fundamentals and focused execution by a highly trained and capable team.
Reliance Retail continues to deliver its promise of trust to all its customers, suppliers and employees.
`784 crore Retail EBIT increased by 55.6% y-o-y
Reliance Market Store, Ahmedabad, Gujarat
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 90
STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH
Indian retail landscape is witnessing a rapid change driven by strong economic growth, changing demographic profile, increasing
disposable incomes, evolving consumer tastes and preferences. Reliance Retail is geared up well to withstand the dynamics of the
evolving retail industry.
Multi-retail
concept
Adaptive/
Responsive
Partner of
choice
Reliance Retail has adopted a
multi-retail concept strategy to serve
customers across diverse shopping
needs.
Reliance Retail has emerged as the
partner of choice for International
brands and has established exclusive
partnerships with many revered
international brands.
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
anticipating and responding quickly to
the ever evolving customer and market
dynamics.
State-of-the-art
infrastructure
Multi-channel
strategy
Reliance Retail has built robust and
scalable infrastructure backed by
cutting edge technology and strong
processes to support smooth store
operations.
Reliance Retail has adopted
multi-channel strategy and has
integrated ‘offline-online’ models
to truly differentiate the customer
experience.
OPERATING STRATEGY
Reliance Retail is India’s largest retailer in terms of reach, scale
and revenues. Deep insight into India’s economic, cultural and
consumption diversity drives Reliance Retail’s vision in the retail
universe. Reliance Retail business is being led by the following
four strategic pillars:
Customer Centricity: Reliance Retail endeavours to offer
rich customer shopping experience through wide product
assortment, convenient shopping layout, trained store staff
and hassle free checkouts. Keeping customers at the centre,
Reliance Retail has embraced customer service as a way of life in
everything it does to operate its business.
Own Brand Strategy: Reliance Retail continues to extend
its portfolio of own brands across all consumption baskets.
Reliance Retail offers superior quality through these brands
through an active engagement with manufacturers at every
stage starting from design and quality testing to final product
rollout. Many of these own brands have grown in size and scale
to compete with national and international brands.
Innovation: Reliance Retail has been swift in embracing latest
technology across its stores and supporting infrastructure.
Reliance Retail has built nimble yet scalable operations to
enhance customer experience in the evolving digital era.
Reliance Retail is gradually rolling out its innovative
omni-commerce initiatives with multichannel sales approach
that provides its customers with an integrated shopping
experience.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 91
Productivity and Efficiency: Reliance Retail operates on a highly process based approach so that the customers gets seamless
experience every time they shop. Its highly trained people and robust processes ensure consistent execution resulting in superior
productivity.
Reliance Retail Operating Model
Vendor
ecosystem
Large
corporations /
enterprises
Mid and small
enterprises
BUY
MOVE
SELL
Merchandise
planning
Being
competitive
on assortment
Consistency
in quality &
availability
State-of-
the-art
warehousing
facilities
Efficient
logistics
management
Inventory
management
Extending
customer
reach across
physical
& digital
channels
Customer
engagement
Loyalty
Management
Channels
Customers
Physical store
Individuals
E-commerce
Retailers
Technology & IT systems
Recruitment & Training
Engineering & Construction
Connected Kiosks
Restaurants &
caterers
Farmers
Support services
Catalogue sales
B2B
MARKET ENVIRONMENT AND OUTLOOK
India continues to be one of the fastest growing major economies
globally with GDP growth rate of 7.1% in FY 2016-17. Government
continues to lay focus on structural reforms, infrastructure
development, agricultural and rural development, removal of
labour regulations and improve ease of doing business.
witnessed numerous changes over the last decade – consumer
demand is shifting, shopping preferences are evolving and
high degree of technology adoption is taking place which are
pushing up the Indian Retail sector into a new growth orbit. By
2020, Indian retail market is projected to reach US$1.3 trillion
from US$672 billion in 2016 growing at a CAGR of 17%1.
The year 2016-17, marked several momentous economic policy
decisions. The passage of the constitutional amendment for
implementation of the Goods and Services Tax (GST), and the
demonetisation of highest denomination notes were the two
key measures taken during the year. GST is anticipated to have
positive impact on almost all aspects of business operations
in the country. The reform is expected to benefit GDP growth
rate as well as simplify taxation structure in the country among
other benefits.
Organised retail is estimated at US$ 60 billion (~9% of the total
retail market) as of 2016 and is projected to reach US$180
billion (contributing 14% of the total retail market) by 2020
growing at a CAGR of 25% 2. In contrast to retailers in advanced
economies who are facing growth challenges with saturated
home markets and tough macro-economic conditions, Indian
retail scenario remains positive with retailers registering healthy
growth across categories and formats. Sustained economic
growth, rising income levels, growing aspirations, increased
With income levels improving, Indian Retail landscape has
1 Retail Sector Report; IBEF.org; February, 2017
2 Retail Sector Report; IBEF.org; February, 2017
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
92
awareness and technology adaptation continues to drive
consumption in India.
2016 was a challenging year for many e-commerce players
who witnessed course correction both in terms of the market
approach and valuations. With lower funding, falling valuations
and pressure from investors, the e-commerce space is now
seen shifting its focus from achieving higher Gross Merchandise
Value (GMV) to achieving profitability and sustainability.
E-commerce players across the board are re-looking at their
model to bring in more efficiencies, rationalise discounting,
and shifting portfolio mix in favour of high-margin categories.
E-commerce as a channel is expected to expand steadily in the
coming years.
FINANCIAL AND OPERATIONAL
PERFORMANCE
Parameter
FY 2016-17
(`in crore)
FY 2016-17
(US$ in
millions)
FY 2015-16
(`in crore)
%Change in
y-o-y
(All figures are in `crore)
5,207
121
33,765
784
2.3%
21,075
504
2.4%
Revenue
EBIT
EBIT (%)
Reliance Retail achieved a turnover of `33,765 crore in
FY 2016-17 as against `21,075 crore during the previous year,
registering a strong growth of 60.2%. The business delivered
record profits during the year with an EBIT of `784 crore as
against `504 crore in the previous year.
60.2%
55.6%
Reliance Retail added 371 stores during the year. It operated
3,616 stores across 702 cities with an area of over 13.5 million
square feet. In addition to the retail stores, Reliance Retail
operated 448 fuel outlets as on 31st March, 2017.
From basic daily necessities like milk, fruits and vegetables to
monthly household needs; from everyday fashion to high-end
fashion; from Jewellery to footwear; from mobile phones to
high end gadgets, Reliance Retail touches millions of Indian
consumers every day through its retail stores.
Reliance Retail continues to be the leading grocery retailer
in India offering fresh fruits and vegetables, dairy, processed
food, FMCG and other items of daily use through its network of
Reliance Fresh, Reliance Smart and Reliance Market stores.
Reliance Fresh & Smart stores operates on three core
promises of ‘Fresh Hamesha, Available Hamesha and Savings
Hamesha’. Focused towards serving day to day needs of
consumers, Reliance Fresh and Smart stores are one-stop-shop
for fresh shopping, fresh savings and fresh happiness.
Reliance Smart, a destination store with simpler and stronger
value proposition to customers was launched in the fourth
quarter of the previous financial year. It has received an
overwhelming response from customers since its launch.
Reliance Retail during the year has extended the ‘Reliance
Smart’ store concept to more regions and operates 77 stores as
on 31st March, 2017.
Reliance Market is the largest cash and carry chain in the
country. Reliance Market continues to extend its store network
and operates 41 stores across 38 cities and 13 states in India.
Reliance Market derives its competitive strengths from its
operating model of 'buy for less' – 'operate for less' – 'sell
for less'. These guiding principles drive decisions relating to
assortment, value proposition and in-store shopping experience
for its customers. Reliance Market is patronised by over 2.5
million registered members across the country. During the year,
Reliance Market reported a robust same store sales growth
making it one of the fastest growing cash and carry chains in
the country.
Reliance Retail continued to extend its own brand portfolio
in key categories and launched new products in laundry
detergents, dish wash detergents, specialty tea, jams and
breakfast cereals categories.
Reliance Retail operates the largest consumer electronics
store chain in India through a network of 1,996 Reliance Digital
and Jio stores having presence in over 700 cities across India.
Reliance Digital offers over 200 national and international
brands offering the widest assortment of products spanning
across Audio & Video products, Digital Cameras, Durables like
Air Conditioners, Refrigerators, Washing Machines, Microwave
Ovens, Water Purifiers, Kitchen and Home Appliances, Gaming
Consoles & Games, Computers, Laptops, Tablets & Peripherals,
Mobile and Fixed line instruments as well as a wide range of
accessories and new-age gadgets across all major product
categories.
Reliance Digital has uniquely positioned itself on personalising
customer experience by offering solutions rather than products.
Reliance Digital witnessed robust growth across all categories
aided by strategic planning, targeted promotions, differentiated
assortment and an engaging store experience. These stores
are supported by robust supply chain and unmatched service
capabilities brought by ResQ.
ResQ is a full–fledged service organisation and is India’s first
multi–product, multi–brand and multi–location service network
that provides solutions encompassing end–to–end product life
cycle requirements for the entire range of CDIT products and
other value-added services.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
93
Reliance Retail through Reliance Jio Stores, a small store
concept, operates the largest retail chain for mobility and
communications products in India. The chain offers a wide
choice of products from national and international brands at
competitive prices. In addition, Reliance Retail through Jio
Stores has been successful in address the challenge of limited
physical space and operates on a connected store model.
Addressing the large market opportunity in the 4G mobile
device market, Reliance Retail has built the largest distribution
reach for mobility devices in India. It encompasses over 5,00,000
independent retail partners that are serviced by trained
sales specialists, integrated supply chain and a network of
distributors and service centres.
During the year, Reliance Retail through its distribution network
sold nearly 10 million 4G LYF handsets, Jiofi devices and partner
brand handsets.
Indian fashion and lifestyle category is witnessing a paradigm
shift with rapid adaptation of latest fashion trends by
consumers. Increasing disposable incomes, exposure to urban
trends through TV content and social media and, rising working
women population are driving changes in the consumer
purchase behavior across income segments.
CONNECTED STORES - BREAKING THE BARRIER OF LIMITED PHYSICAL SPACE
Small stores, large assortments
Connected
Kiosk
Web Store
Brick & Mortar Stores
Catalogue Sales
Seamless Inventory Integration
Network of Fulfilment Centres
Store Pickup
Home Delivery
Last Mile Delivery
Call Centre
Mobile Store
Anytime, Anywhere, Any Device
Seamless Customer Experience
Customers
Jio Stores through its omni-channel approach has built capabilities to offer Reliance Digital’s entire product assortment
through an assisted sales model where customers can browse an expanded assortment of products, read product details,
compare options, and make purchase decisions.
The capability provides a ‘connected store’ experience to customers even in remote locations where Reliance Digital store may
not be present. It also improves store productivity through better cross sell and upsell opportunities.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 94
Reliance Retail is India’s leading fashion & lifestyle retailer
serving customers across various segments and operating
economy, mid segment and luxury fashion stores. Reliance
Retail has fully integrated operations encompassing designing,
fabric sourcing and contract manufacturing giving it a complete
control over the fashion value chain enabling it to offer the
most fashionable clothes to its customers in a most efficient
way.
Reliance Trends is the largest value fashion retailer in India.
Reliance Trends added 73 new stores during the year and now
operates 344 stores across 177 cities. Reliance Trends continued
to expand its retail presence by opening store in Tier-2, Tier -3
cities.
During the year, Reliance Trends witnessed a strong same store
sales growth aided by differentiated assortment, strategic
planning backed by robust design and sourcing infrastructure.
Reliance Retail expanded its women’s wear fashion offering by
launching Trends Woman, a store concept that offers a warm,
welcoming and exclusive shopping space to shoppers looking
for trendy, high-fashion and well-curated collections of Indian
wear.
Transforming sales associates into
telecom experts!
Reliance Retail supported Reliance Jio’s launch by being one
of its key distribution partners. Reliance Retail was tasked
to train a large number of associates at the Jio stores into
telecom and device experts to handle customer queries and
retail a wide array of Jio offerings and services.
Store associates were made job-ready through a series of
structured and continuous learning interventions. Within a
span of 2 months, over 10,000 associates spread across 700
cities were put through a series of training modules that
included process training, customer query handling skills
and product knowledge. The training was delivered through
classroom training and online training modules.
Reliance Footprint, a specialty footwear retail chain offers
footwear and accessories through a range of private label
brands along with national and international brands. Reliance
Footprint operates 255 stores, making it a leading national
multi–brand family footwear chain.
Reliance Jewels is India’s leading fine jewellery retail chain.
With its first store opening in 2007, Reliance Jewels today
extends its reach to 36 cities with 52 stores across India. At
Reliance Jewels, customers are assured of the widest range,
stunning designs, guaranteed purity & quality and a pleasant
shopping experience. The product collection hosts an extensive
range starting from traditional gold jewellery including Kundan,
Polki, Filigree and Temple that showcases the legendary
design and craftsmanship of various parts of India right up to
contemporary diamond jewellery & solitaires.
Reliance Retail has a portfolio of over 40 international brands
that spans across the entire spectrum of luxury, bridge to
luxury, high–premium and high–street lifestyle. Reliance
Retail operates more than 431 stores for international brands
and continues to partner with new and revered international
brands. During the year, Reliance Brands signed a Joint
Venture agreement with world’s second oldest luxury brand
Bally, a luxury brand with rich heritage, Swiss quality and a
contemporary design ethos. It also entered into a long-term
master franchise agreement with Netherlands based fashion
brand Scotch & Soda.
Reliance Retail entered into an exclusive long-term partnership
with ‘Flormar’, Turkey’s leading beauty and color cosmetics
brand and a part of Yves Rocher Group, France.
Reliance Retail expanded the network of fuel outlets by
re-commissioning 142 fuel outlets during the year and now
operates 448 fuel outlets. The “RSP discount scheme” launched
for a limited period during 4th quarter saw overwhelming
response across India and helped recover volumes lost during
the demonetisation period.
Reliance Retail’s relentless focus on building a robust supply
chain infrastructure has helped in scaling its operations.
Reliance Retail served millions of customers through its
network of 3,616 stores spread across the length and breadth
of the country. To efficiently manage operations of such
scale, Reliance Retail operates state-of-the-art warehousing
infrastructure spread over 5.6 million square feet and
equipped to handle a large variety of products ranging from
fresh produce with low shelf life to fragile consumer electronics;
from footwear to toys, from fashion accessories to apparel and
much more.
During the year Reliance Retail commissioned a new state-of-
the-art warehousing facility of 4,00,000 square feet in Tumkur,
Karnataka. The facility is one of its kind and has capability
to deliver 2x throughput vis-à-vis existing facilities while
optimising on cost and delivery efficiencies.
Reliance Retail operates over 100 distribution centres nationally
and has a fleet of more than 1,000 trucks giving it the ability to
service stores within 24-48 hours in any part of the country.
To support the e-commerce initiatives, Reliance Retail has made
investments in building capabilities to handle picking, packing,
and shipping single items and small volume orders directly to
consumers.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 95
400 differently abled individuals were trained and employed
across various job roles.
In addition to above, Reliance Retail in association with Reliance
Foundation has carried out numerous initiatives towards rural
development and alternative livelihood development projects.
AWARDS AND ACCOLADES
Reliance Retail was recognised as India’s Top 10 Retail
Companies to Work for Calendar Year 2017 by Great Place
to Work Institute and Retailers Association of India (RAI).
Reliance Smart was awarded with “IMAGES Most Admired
Food & Grocery Retailer of The Year: Merchandising,
Marketing, Consumer Promotions & Customer Service” at
the India Food Forum 2017.
AJIO was awarded ‘Silver W3 Award’ for its creative
excellence on the web by the Academy of Interactive and
Visual Arts and 'Excellence in Digital Experience’ award in
SAP Ace Awards 2016.
AJIO was awarded ‘Online Retail Launch Site of the Year'
award at the Asia Retail Congress 2017.
Reliance Digital was awarded ‘Retailer of the Year’ by India
Retail Awards 2016 and rated as ‘the Leading Electronics
Retail Brand’ in equity index study by Nielsen.
Reliance Retail appeared in the list of ‘Most Trusted
Retailers’ as per ET Brand Equity 2016 Survey.
DIGITISATION INITIATIVES
As part of Reliance Retail 2.0 initiatives, AJIO extended its
offering by launching men’s wear, fashion tech and kid’s wear
categories and rolled out various features such as IMPS, EMI,
automated refunds and much more to enhance customer
experience. The website offers over 59,000 options across
clothing, footwear, accessories. Gaining popularity and strong
customer response with high repeat purchases, AJIO is further
expected to grow at fast pace leveraging on JIOs capabilities.
AJIO is backed by a strong supply chain that facilitates deliveries
to over 9,000 pin codes across the country with continuing
expansion in delivery reach.
Reliance Retail became the first organised retail chain in India
to support Unified Payment Interface (UPI)-based payments.
The service was launched in March 2017 at over 200 stores
comprising of Reliance Fresh, Reliance Smart, Reliance Digital
and others in Mumbai. Progressively, the facility would be
rolled-out to other Reliance Retail stores across the country.
GROWTH PLANS
In India, the organised retail currently accounts for approx. 9%
of the overall retail industry. This provides a significant growth
opportunity for organised retailers in the country. Reliance
Retail remains committed to extending the benefits of modern
retail to every Indian consumer. The Company will further fortify
its leadership position with a ubiquitous coverage across India
through a blend of retail stores and online channels.
CORPORATE SOCIAL RESPONSIBILITY
Reliance Retail stores have actively pursued opportunities to
reach out and connect with neighboring communities. As part
of Karta initiative, Reliance Retail endeavors to be a positive
agent of change and development in the communities and
areas where it is present. Reliance Retail stores have initiated
a large number of community events throughout the year
that has helped earn goodwill in the neighborhoods and also
improve teamwork amongst store colleagues. To generate
maximum impact, a large number of initiatives were executed
at the store level. Some of the activities included:
Promoting and actively engaging with the movement
‘Swacha Bharat Abhiyaan’ and working towards
environmental sustainability through various initiatives like
plantation drive, park/street and river bank cleaning.
Organising blood donation, eye check-up and health
check-up camps.
‘Spreading happiness’ campaign - organising visits and
food/clothes donation to orphanages and old age homes.
Reliance Retail actively engages in training and employing
differently abled resources at its stores. During the year, over
Main Aisle
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
96
DIGITAL SERVICES
SANJAY
MASHRUWALA
MATHEW OOMMEN
PANKAJ PAWAR
KIRAN THOMAS
HARISH SHAH
Catalysing digital transformation opportunity for 1.3
billion Indians
Jio has changed the nature of mobile services in India
(arguably globally too), redefining benchmarks, setting new
milestones, inspiring unprecedented adoption, usage and
service metrics that are better than the best globally, while
ushering in a truly converged digital service.
100 million subscribers on-boarded in 170 days
Powered by innovative biometric driven eKYC
Value creation through abundant data capacity
India data consumption increased multi-fold
with Jio
India is now the largest mobile data consumer in the
world
Jio mobile data traffic is more than 1 Exabyte (1bn GB)
per month
Average consumption on Jio is 10GB/month/user
(Highest in world)
Simplest tariff structure
One India ~ No roaming charge
Truly Free voice-Local, STD, Roaming, Off-net
Only pay for one service (highest demand)-data
Lowest data rates in the world
Largest Migration from Free to Paid
While Jio continues to co-create digital eco-system and
expand it’s network with a coverage target of 95% of India’s
population (from current 75%), Jio reiterate it’s promise to
shape the future of India through transformative, quality
and affordable access of end to end digital services for every
Indian and making digital India vision a reality.
100 million Reliance Jio the fastest company to reach 100 million subscribers
Jio-Digital Life
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
97
STRATEGY AND VISION
Coverage
Data
Quality
Affordability
Coverage refers to
anytime, anywhere mobile
broadband access. With
Jio’s launch, current mobile
broadband coverage in
India has shot up to 75% on
par with US. Jio continues
to expand its network with
aim of full Indian population
coverage and target of
over 95% within 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.
Jio's network is engineered
with abundant capacity
to serve every Indian. Jio’s
customer base of 100+
million today on an average
already consume 10GB/
month/user. This is highest
per capita mobile data
consumption in world.
Quality of broadband
services hitherto in India
were below par international
standards. Jio's vision is to
offer speed that are multiple
times faster than the current
average speed offered in the
market, backed by its state-
of-the-art future proof all
IP network and world-class
customer service quality.
Affordability is key to
success of the digital
revolution. Jio has
developed its network at an
extremely efficient cost base
coupled with significant
operating efficiencies. These
efficiencies are enabling it
to offer services at a very
competitive cost compared
to others. Jio has introduced
One India simplified tariff
plans with truly free voice
and lowest data rates in the
world.
MARKET ENVIRONMENT
Digitisation and data consumption were hitherto subdued
because of inadequate investment in infrastructure, lack of
credible competitive environment coupled with steep pricing.
Jio’s entry not only unlocked existent latent demand, but also
consumption patterns leading to exponential increase in per
capita data consumption.
This latent demand for data consumption in India is evident
on Jio’s network traffic (Jio is now world’s largest Mobile data
carrier) and it is expected to bring a paradigm shift in the Indian
telecom industry.
Jio’s fundamental belief and conviction in the potential of the
market is also underlined by studies and estimates of leading
global consulting firms. Excerpts from some of these studies are
outlined below:
i)
ii)
Global trends suggest rapid decline in voice revenues after
smartphone penetration matures.
Traditional voice increasingly getting replaced by VoIP
and IM.
iii)
iv)
v)
vi)
Increasing investment in improved data network
infrastructure.
Global migration to bundled offering with unlimited voice
to counter shift in voice traffic.
Networks are transforming to support rapid adoption and
proliferation of video traffic.
Industry is witnessing rapid shift from legacy technologies
(2G / 3G) to LTE.
vii)
Contribution of voice to overall revenue will decline
but overall industry revenue will increase with higher
consumption of data and digital services.
viii) Revenue market share will be driven by data capacity share
of operators.
Jio
has brought India on the world map
for mobile and digital services
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 98
GLOBAL DATA CONSUMPTION
Data consumption on Jio network is higher than the total
mobile data consumption in the US and twice that in China
INDIA - NO.1 IN DATA CONSUMPTION
h
t
n
o
m
/
B
G
e
r
o
r
C
100
20
63
71
47
18
INDIA
KOREA
JAPAN
CHINA
USA
Source : BCG-TiE Report
The large potential, in terms of underserved addressable market
backed by compelling value propositions continues to provide
a substantial opportunity for Jio to leverage on its head start
in building India’s digital eco-system. Jio is well positioned
to address this opportunity with its investment in network
infrastructure that has given India one of the most powerful and
unmatched video networks in the world.
LINKING OPPORTUNITY AND STRATEGY TO
EXECUTION
Jio is present in all 29 states of India with direct physical
presence in more than 18,000 urban and rural towns and
over 2,00,000 villages. Jio has built the most sophisticated,
efficient and largest LTE network in the country. Jio already has
the largest fiber network in the country and highest amount
of spectrum deployed for LTE services in the industry. The
spectrum holding and network infrastructure strengthens
coverage and data availability.
Explosion in digital consumption driven by shift in supply paradigm and new demand use cases
2016
1x
1x
1x
2020
3-4x
1.5x
10-14x
2-2.5x
0.7
GB/user/month
7-10
GB/user/month
Time spent
Mix of online activities
(share of video)
Resolution/ from factor
Source: BCG-TiE Report
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
99
One of the widest reaching network globally - spread
across cities and villages
To cover >95% of India's population
High quality data uninterrupted and high-speed data
access anywhere, anytime
High speed video ready network
Most affordable data in the world-ensuring access to
the common man
Data cost less than ` 50/GB
Connectivity for every Indian - with bouquet of
digital services
Affordable devices with data connectivity and applications
Jio enabling India to become a digital powerhouse
India Digital Vision
100 million
Reliance Jio the fastest company to
reach 100 million subscribers
Jio Campus
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 100
JYOTINDRA
THACKER
JAGBIR SINGH
ANISH SHAH
"Jio has set up a next generation future proof all IP network which is amongst the best in the world. Jio’s all IP future proof
network has latest advanced features such as Software Defined Networking (SDN) and Network Functions Virtualisation (NFV).
Jio’s key service objective is to provide anytime, anywhere access to innovative applications and high-speed internet services,
and is committed to India’s global leadership in the digital economy through investments and co-creation of best in class
technology, continuous innovation and development of product and service platforms for ultimate customer experience.
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."
World’s largest migration from free to paid services
INFRASTRUCTURE, TECHNOLOGY AND
ECO-SYSTEM
Jio has deployed LTE using both Time Division Duplex (LTE-
TDD) and Frequency Division Duplex (LTE-FDD) technology for
its wireless broadband services. LTE technology has evolved
significantly in the last few years, with increased efficiency of
network equipment, availability of device eco-systems, and
compatibility across bands. Jio continues to benefit from these
advances in LTE technology.
Jio’s network is specifically designed to carry multimedia
content, including music and video, thereby enabling a rich
customer experience.
Jio’s deployment of LTE, FTTH and Wi-Fi will make high speed
broadband access widely available to customers in India. This
type of broadband access network offers high capacity, low
latency services at an affordable price, a first for most Indian
customers.
Jio has become the largest network globally in terms of data
carried and contributed to India becoming the leading country
in the world for mobile data usage, with more than 100 Cr GB
of data traffic per month and 200 Cr voice and video minutes a
day.
India’s mobile data traffic pattern in Cr GB per month
Pre-Jio
Total
Market
20 Cr
GBs/month
5-6 months
With Jio
100 Cr
GBs/month
20 Cr
GBs/month
Jio is Catalysing India’s Digital
Adoption
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 101
Jio’s network is the largest 4G network in India and literally
present in every city, town and most of the villages of the
country with more than double the number of 4G base stations
when compared to those of all the other Indian operators put
together.
LICENSE AND SPECTRUM HOLDING
During the year, RJIL participated in spectrum auction and
acquired 269.2 MHz of spectrum across different bands for
`13,672 crore.
Jio continues to expand its current LTE network coverage
foot print and is also deploying Fiber-to-the-home (FTTH)
technology for wire-line broadband and Carrier-Wi-Fi
technologies for broadband via public hotspots.
RJIL’s total spectrum footprint with this stands at 1,108 MHz
(uplink + downlink) across three spectrum bands namely 800
MHz, 1800 MHz and 2300 MHz band across each of the 22
circles with an average life of over 16 years. All of this spectrum
is liberalised and can be used for rolling out any technology.
By the end of 2017, the Jio's network will be present in almost
all the cities, towns and villages covering over 95% of India's
population.
In addition, RJIL has entered into agreement with Reliance
Communication Limited (RCOM) for sharing of spectrum in the
800 MHz band across 21 circles.
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,
enterprises, small businesses, government and other entities.
INNOVATION LED DEPLOYMENT
Jio’s next generation network 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 has filed 54 patents for the path-breaking
initiatives it has been pioneering.
Jio has over 1,00,000 radiating sites, which is significantly more
than what any other operator had at its launch and already
positions Jio as one of the largest network operators in the
country. Fiber is the critical backbone on which a telecom
service provider is able to provide high end services to
consumers. In addition to fiber backhaul, extensive last mile
fiber connectivity is being rolled out to address the fiber to the
home potential.
RJIL's Singapore subsidiary is also key consortium partner in
a multi-terabit capacity international network, 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.
This strategically important undersea cable landing facility
in Chennai is owned by the RJIL, provides a high-speed, high
capacity, low latency route connecting India to the rest of the
world.
With respect to sales and distribution, Jio has about half a
million activation outlets and close to a million recharge outlets
at launch. This is in addition to the digital channels that Jio has
for seamless activation and recharge facilities for customers.
The outlets have real time access to over 1,050 Jio offices set-up
across the country.
RJIL network is engineered for seamless services delivery using
LTE technology in 800 MHz, 1800 MHz and 2300 MHz bands
through an integrated ecosystem. The combined spectrum
footprint across frequency bands provides significant network
capacity and deep in-building coverage.
PARTNERSHIPS
Value chain presence: Jio, along with business partners, is
focused on making all the components of the digital value
chain available to customers. To deliver such end-to-end
solutions, Jio continues to partner and collaborate with
technology developers, service providers, infrastructure
providers, application partners and device manufacturers.
Infrastructure service providers: Jio has entered into master
service agreements with leading telecom infrastructure
companies such as Reliance Infratel Ltd, Indus Towers Ltd,
Viom Networks Ltd, ATC India Tower Corporation Pvt Ltd, GTL
Infrastructure Ltd, Ascend Telecom Infrastructure Pvt Ltd, Tower
Vision India Pvt Ltd, RailTel Corporation of India Ltd, BSNL
and MTNL to have access to the passive infrastructure set-up
by these companies. Such infrastructure is being used where
required.
Jio also has agreements with RCOM for the purpose of sharing
fiber and economising on overall use of fiber and other passive
infrastructure.
In addition to the partnered assets, RJIL has also built its own
network of towers and optic fiber to supplement its partners’
tower and optic fiber infrastructure.
DEVICES
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 LYF brand of devices by
Reliance Retail Limited and several launches by other leading
OEMs, it is expected that almost all the smartphones sold in the
coming months will be VoLTE enabled.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 102
Jio is ensuring tight integration of these devices with its
network infrastructure, platforms and applications portfolio to
ensure seamless experience to customers.
LIFESTYLE APPLICATIONS (APP)
Jio's all IP-centric network is enabling 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. Jio’s 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.
Jio’s customers have access to a large suite of digital services
which will enrich their experience:
JioChat
JioXpressNews
JioMoney
MyJio
JioNet
Jio4GVoice
JioCloud
JioSecurity
JioNewspaper
JioHealthHub
JioMags
JioMusic
JioCinema
JioTV
COMMENCEMENT OF SERVICES
Jio commenced its services in September, 2016: Jio’s service
commencement outlines five fundamental pillars of the Jio
ecosystem: (i) The best quality broadband network with the
highest capacity; (ii) A world of affordable, cutting-edge
devices; (iii) Compelling applications and content; (iv) Superior
digital service experiences; and (v) Affordable and simple tariffs.
Industry redefining tariff simplicity and transparent
principles: In a path breaking practice, Jio has introduced
simplified tariff structure with less than 20 plans as against the
22,000+ tariff plans prevailing in the country today. The plans
are consistent across India, rather than circle specific plans and
are designed to fit every budget. The mantra is simple, easy
to understand with no fine print and ambiguous associated
conditions. In all the tariff plans, voice services (Local calls,
STD and National Roaming) will be offered free of cost to all its
subscribers always.
Jio Prime Membership Programme for founder members: As
a token of its gratitude, the first 100 million plus Jio subscribers
were offered special ‘Jio Prime Membership’ programme which
comes with several special benefits. Jio Prime Members will
be able to enjoy unlimited benefits of Jio services till 31st
March, 2018 for a nominal, one-time enrolment fee of just
`99/- coupled with the most competitive monthly tariff plan in
the industry starting at `303/- per month. The programme was
designed to also enable Jio Prime Members to enjoy the full
bouquet of Jio’s applications on complimentary basis till
31st March, 2018. In addition, there will be many other
attractive deals and offers from both Jio and its partners that
the Jio Prime Members will enjoy under this programme.
The Prime Membership programme was a resounding
success with 72 million plus customer subscriptions by 31st
March, 2017, reflecting profound trust in Jio’s service quality
and offerings while enabling a smooth migration path from
complimentary services to paid services.
Everyday More Value Offer: In an industry first, Jio in
addition to its own market leading tariff plans, will also offer its
customers the option to choose the highest selling tariff plan of
any of the other leading Indian telecom operator, but with 20%
more data than what the other operator provides. With this, Jio
will ensure that consumers do not have to ever suffer from ‘data
anxiety’ and remain assured of the best value for the price paid
in a hyper competitive market.
Since commencement Jio has changed the nature of mobile
services in India. With its customer-friendly pricing and services,
Jio has shown that India can be a major market for mobile
broadband services. Jio's success can be attributed to several
factors, which includes its ecosystem approach, spectrum
holdings, superior technology, pan-India network, consumer
centric pricing, suite of digital services and applications, services
and marketing and device availability.
In this transformative journey Jio reaffirms its commitment
to ‘Digital India’ vision and its ultimate objective of providing
anytime, anywhere access to innovative and empowering
digital content, applications and services, thereby propelling
India into global leadership in the digital economy.
CORPORATE SOCIAL RESPONSIBILITY
As part of Corporate Social Responsibility and Urban Renewal
efforts, Reliance Jio has taken up Green initiatives to enhance
quality of life for all in India’s rapidly growing urban areas. It is
working with local municipalities to adopt existing public parks,
green strips and open grounds and develop them into next
generation public spaces for the benefit of the citizens.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 103
MEDIA AND ENTERTAINMENT
RAHUL JOSHI
“Network18 aims to be at the zenith of providing cutting edge news and quality content to the demanding new-age viewer;
and create unparalleled reach in the process.
The media industry in India is vibrant and evolving; with the emergence of new formats and services and rapidly-changing
business models. Network18 aspires to be at the forefront of this change. Digital is a focus area for Network18 and its
strength in linear media provides an edge, helping the Company leapfrog to be a channel-agnostic provider of top-drawer
content.”
CNBC TV18 had 86% market share during annual budget speech
Newsroom
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 104
STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH
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.
Channel-agnostic
approach
Reach for
impact
Thought
leadership
The multi-platform consumer of today
is more active, aware and assertive,
with strong opinions on key issues.
Network18 harnesses the power of
the digitally empowered consumer in
chalking out its product strategy for
content creation across all platforms.
Through its continued investments
into regional (vernacular) and digital
platforms, Network18 aims to create
unparalleled reach. This shall enable
tapping of the underserved segments
of India’s diverse populace.
Steered by a professional and
experienced team, Network18
constantly strives to host thought
leadership – on air, online and on-
ground, deriving leadership not only
through consumption numbers but also
by facilitating the development of new
ideas and emerging thought processes.
Network
synergy
Strategic
collaborations
Brand
excellence
Network18 comprises leading television
channels, digital and mobile properties
and publications in all key media
genres. This facilitates cross-promotion
and cross-pollination of content and
expertise across its network, thereby
enabling enhanced advertising and
subscription revenue generation.
Network18 has a track record of
building successful strategic alliances
with nationally as well as globally
reputed names in the media industry,
such as Viacom in entertainment, CNN
in English general news and CNBC
in business news, A+E Networks in
factual entertainment and Forbes in the
business magazine genre.
At Network18, the focus is on driving
the highest standards of creative
excellence by fostering a culture of
innovation to build new content
formats across platforms, thereby
creating strong brands across diverse
media.
MARKET ENVIRONMENT
The year was a period of flux for the Media & Entertainment
(M&E) industry, and a tale of two halves. Strong growth
witnessed in first half of the year (H1) due to positive
momentum in channel launches and increased connectivity
saw a sharp deceleration in later half of the year (H2), as
advertisers’ scaled back marketing spends temporarily.
Growth is expected to be back on track in the current year, as
underlying trends on rising content consumption and economic
growth remain robust.
The Indian M&E industry is expected to grow at a 13.9% CAGR
to reach `2,419 billion by 2021, from its estimated size of `1,262
billion in 2016, due to positive demographic trends, improving
connectivity driving reach, and availability of segmented
content offerings. (Source: KPMG in India analysis, 2017).
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 105
Size & Growth in Media & Entertainment in India
n
o
i
l
l
i
b
n
i
`
2500
2000
1500
1000
500
0
13.9%
9
1
4
2
,
2
6
2
1
,
14.7%
6
6
1
1
,
8
8
5
30.8%
5
9
2
7
7
TV
Digital
M&E Industry
2016
2021
CAGR
GROWTH DRIVERS
1.
Improvement in socio-economic indicators
2.
Impetus on vernacular to drive growth in regional markets
3. Supportive 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.
Goods & Services Tax (GST): M&E will stand to benefit
as entertainment tax will fall under the ambit of GST
and input credits will be available to all segments
across the board.
4. Digitisation – “See your customer”
The high quality content and digital services provided by
the Network18 group dovetails with the launch of the Jio
telecom platform; underscoring an ecosystem approach to
digital outreach to the new-age Indian.
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 rapidly gaining acceptance – Amplifies reach
With all key telecom companies in India broadening their
4G offering and gaining consumer acceptance through
falling data prices, the uptake in online video consumption
is growing fast. Further, the reach of telecom providers is
much wider than traditional cable/DTH can offer.
6.
Rural and Digital coverage through Broadcast Audience
Research Council (BARC)
BARC India is the only government registered TV ratings
service in India, which released individual viewer ratings in
June 2015 and rural viewership data from October 2015;
thus covering India more holistically. Further, BARC has
also announced a phased roll-out of Digital measurement
platform ‘EKAM’ recently, which will help track the hitherto-
unmonitored digital content consumption.
FINANCIAL AND OPERATIONAL
PERFORMANCE
FINANCIAL OVERVIEW
Network18 improved its market-standing and continued
investing for growth in what was a challenging year for the
media industry. The operating revenues on a consolidated basis
stood at `1,491 crore, down by 2.4% from `1,527 crore in
FY 2015-16.
Sustained investments into new businesses and entry into more
regional markets impacted the financial performance.
FY 2016-17 EBIT was negative at (`201) crore on a consolidated
basis as compared to `173 crore in the previous year.
Particulars
Revenues
EBIT
(`in crore)
FY 2016-17
1,491
(201)
FY 2015-16
1,527
173
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: CNBC TV18 had 86% market-share
during the annual budget-speech.
General News includes CNN News 18 and News18 India.
Highlights of the year: CNN-IBN underwent a complete
revamp on April 18, 2016 and rebranded itself as CNN-News18;
revealing a new logo, look and philosophy. The exclusive
interview with Hon'ble Prime Minister Narendra Modi in
September 2016 was a landmark achievement for the channel.
Hindi News channel IBN7 was also re-launched as News18 India.
CNN News 18 interviewed the
Hon'ble Prime Minister of India Shri
Narendra Modi
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
106
Regional News includes ETV News Channels and IBN Lokmat.
Highlights of the year: Three channels launched - namely
News18 Kerala, News18 Tamil Nadu and News18 Assam/N.E. IBN
Lokmat bagged the prestigious ‘Ramnath Goenka Excellence in
Journalism Awards’.
Infotainment: HistoryTV18 is a leading factual entertainment
channel. Lifestyle channel fyiTV18 was launched.
Highlights of the year: Launched local tent poles this year
with- ‘Man Vs Job’ which showcased some of India’s most
unconventional and interesting occupations.
Entertainment
Hindi General Entertainment includes Colors, Rishtey, MTV
India - the No.1 youth channel, MTV Beats and MTV Indies-
world’s largest platform for independent sub-cultures.
Highlights of the year: MTV and Nescafe partnered to launch a
film-making challenge on MTV Nescafe Labs.
English Entertainment has VH1- the No. 1 channel in its genre,
Comedy Central - India’s 1st 24-hour English comedy channel,
and Colors Infinity, an English entertainment channel.
Film business
Film business includes Viacom18 Motion Pictures.
Highlights of the year: Its productions “Force2” and “Motu-
Patlu–King of Kings” were well received by the audience.
Digital business
Digital Content includes Moneycontrol.com - Leader in the
finance category, Firstpost.com - India’s first and the biggest
digital-only newsroom, OTT video platform VOOT, and regional
news destination News18.com.
Highlights of the year: VH1 was the live TV streaming partner
for Global Citizen Festival India.
Kids Entertainment constitutes of Nickelodeon - the No. 1
channel in the Kids category, Sonic, Nick Jr./Teen Nick and Nick
HD+.
Highlights of the year: Viacom18’s digital video destination
VOOT was rated one of the top apps of 2016 on the Google
PlayStore.
Digital Commerce
Digital Commerce includes HomeShop18 and Bookmyshow.
Highlights of the year: Nickelodeon school contact program
reached out to nearly 500 schools across multiple cities in the
country.
Regional Entertainment: The Network18 group has rebranded
all of the acquired regional entertainment channels of ETV
(now part of the Viacom18 stable) under the common umbrella
brand of Colors. These 5 channels in Kannada, Bangla, Marathi,
Gujarati and Oriya mirror the cultural ethos and richness of the
respective regions through unique content and provide the
group with a thrust into vernacular entertainment which is the
growth engine of the future.
Highlight of the year: A second Kannada entertainment
channel "Colors Super" was launched.
Highlights of the year: Bookmyshow was the ticketing partner
for big sport events like India Super League (ISL) 2016 and India
vs England Test cricket series, apart from prestigious global
citizen festival where top British rock band Coldplay performed.
Print/publication business
It has a portfolio of highly reputed publications comprising
‘Forbes India’, ‘Overdrive’, ‘Better Photography’ and ‘Better
Interiors’.
Highlights of the year: Launched ‘W Power Trailblazers’ and ‘30
under 30’ lists.
GROWTH PLAN
India’s M&E industry is interestingly poised, with tailwinds of
distribution bottlenecks easing (via cable-digitisation and
the advent of 4G). A reviving economy and an improved
understanding and reach into India’s vast consumer market
make the space an exciting one.
Network18 aims to be a one-stop-shop of broadcast and digital
touch points with India’s increasingly aspirational populace.
Creation and curation of high quality content and cutting-edge
news continues to be the focus. The coming year will see further
impetus on deepening its presence in regional and digital – to
align with the two platforms of future growth identified –
vernacular content and digital delivery.
New age lifestyle content
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 INNOVATION
Moneycontrol is one of the first platforms in the country to
be available on Facebook Messenger in a bot-sized package,
allowing users to chat with Moneycontrol to get the latest
updates on Indian stocks and market news.
Post re-launch as News18.com (an umbrella brand for general
news), initiatives like ‘iVideos’ for original HD videos, ‘Immersive’
long format content, ‘Power Circuit’ for political buzz news, 360
degree/vertical tech and auto videos, showcase endeavours to
continuously innovate on content format and features.
Firstpost pioneered a four-hour live digicast – an amalgamation
of broadcast television, web streaming and Facebook Live – of
the assembly election results of 5 states. Facebook recognised
Firstpost as one of the most innovative users of FB Live in India
and abroad.
ILLUSTRATION: Creation of a world-class video
entertainment OTT platform
Creating mass traction for OTT video content ex-sports has
been a tough ask; as India’s diversity, traditionally slower
data speeds and fragmented mobile-phone-capability base
present a unique challenge.
Action Taken: VOOT was launched by entertainment arm
Viacom18 in April-2016; with own TV shows, exclusive online
series and even aggregated kids content. Since launch, it has
evolved to allow for scalability across devices and data-speeds.
Outcome: VOOT was rated one of the top apps of 2016 on the
Google playstore, and has achieved strong traction with 40+
minutes of average daily viewership per user.
CORPORATE SOCIAL RESPONSIBILITY
At Network18, 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.
Through the umbrella of Reliance Foundation, the Network18
group conducted a health outreach programme in Mumbai,
where Static Medical Units for primary and preventive
healthcare (including diagnostics) were established.
107
A programme named “Young Champs” was also run by the
group in Mumbai. It was aimed at providing training to sports
persons to promote nationally recognised sports
in rural areas.
Programmes like ‘Where is my Home?’ (Highlighting issues
of home-buyers affected by project delays), ‘Going Green’
(environmental problems) and ‘March on Women!’ (Women’s
issues in India) aimed to create social awareness and potentially
find some solutions through enhancing dialogue amongst
stakeholders.
CNBC Awaaz Studio
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 108
LIQUIDITY AND CAPITAL RESOURCES
SRIKANTH
VENKATACHARI
SOUMYO DUTTA
“Reliance continues to be a pioneer in innovative structured financing. It has been actively pursuing digital solutions in
the form of SWIFT messaging, digitisation of cross border trade, big data, electronic bond platform and robotic process
automation . Reliance raises capital at extremely competitive rates and attempts to diversify the resource base across product
types, geographies, maturities and currency mix. Reliance also looks to continuously deliver shareholder value by reducing
cost of its borrowings. Reliance has been able to fund its biggest ever capex program by using a judicious mix of various
financing instruments and optimisation of its working capital cycle. Reliance has successfully retained its credit rating of two
notches above India sovereign by S&P and one notch above sovereign by Moody’s throughout the capex cycle."
State-of-the-art Dealing Room of Reliance
FINANCING STRATEGY
Reliance adheres to conservative financial policies and
maintains significant cash balances in order to be able to
complete projects on a timely basis, capitalise on opportunities,
attract world-class project partners and carry out capital
investment programs through business cycles.
Reliance has achieved a diversified capital structure using a mix
of different instrument classes and financial products across
maturities and currencies. As a pioneer in debt markets and
the largest offshore borrower from India, Reliance has excellent
access to global capital markets and enjoys strong relationships
with more than 100 banks and financial institutions. It is also
one of the largest corporate user of Export Credit Agencies
(ECA) backed financing globally which gives it the ability to
raise long-term resources from global financial markets at very
competitive rates.
The endeavor is to optimise the cost and tenor of the
borrowing and diversify concentration risk across different
instruments, types of investors, geographies and currencies.
During FY 2016-17, Reliance has successfully refinanced long-
term financing of US$1.75 billion syndicated loan and US$550
million club loan/ bilateral loans aggregating to US$2.3 billion
resulting in substantial interest savings over the remaining life
of these loans. Of these, US$1.75 billion syndicated loan saw an
initial participation from 18 banks. This was further syndicated
to additional 13 banks taking the total number to 31 banks. This
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 109
deal saw the largest amount of syndication in any facility for
Reliance since 2007.
FINANCING FOR ETHANE PROJECT
In October 2016, US$ 572 million financing was tied up to
partially finance six state-of-the-art Very Large Ethane Carriers
(VLECs) – the vessels being first of their type and size globally.
These carriers transport Ethane imported from the United
States to provide feedstock security to existing crackers at
Dahej, Hazira and Nagothane.
During FY 2016-17, Reliance Sibur Elastomers Pvt. Ltd (RSEPL)
tied up a US$330 million term loan from commercial banks. This
10 year financing was the longest tenor US$ denominated loan
raised in Asia (ex Japan) in the last 10 years.
CAPITAL RESOURCES
During FY 2016-17, Reliance and its subsidiaries tied up facilities
across various financing products and maturities. The table
below shows debt levels for the year ended March, 2017 and
March, 2016 for Reliance on a consolidated basis.
This financing deal carries a door-to-door tenor of 12 years
and comprises of US$286 million tranche insured by Korea
Trade Insurance Corporation (K-Sure). This deal got a “Better
than Sovereign Rating” from K-sure and is one of the most well
structured and innovative financing deal done by the Group.
This deal has won five global awards, the details of which are
listed in Awards and Accolades section.
U.S. EX-IM BANK GUARANTEED NOTES
During FY 2016-17, Reliance continued to be the only private
sector energy company globally to issue notes guaranteed by
the Export- Import Bank of the United States (“Ex-Im Bank”).
In October 2016, Reliance priced US$184 million 1.87% Ex-Im
Bank guaranteed notes due 2026 which replaced a floating rate
liability with a fixed rate liability. This was the lowest coupon
achieved for a US$ denominated Ex-Im Bank guaranteed Note
with similar average life in recent years.
Further, in December, 2016, Reliance priced US$205 million
2.444% Ex-Im Bank guaranteed notes due 2026 - the first
ever Ex-Im Bank Direct Loan facility transfer to an Ex-Im Bank
guaranteed capital markets offering.
FINANCING IN SUBSIDIARIES
During FY 2016-17, Reliance Jio Infocomm Limited (RJIL) raised
financing from its shareholders, banks and other institutions to
finance its ongoing capital expenditure.
RJIL issued secured long-term INR non-convertible debentures
aggregating to `5,000 crore comprising of `3,000 crore
debentures with maturity of three years and `2,000 crore
debentures with maturity of five years. RJIL was the first issuer
outside the financial services industry in India to raise funds
digitally through the EBP (Electronic Debt Bidding Platform)
route in June 2016.
Apart from tying up debt financing from multiple financial
institutions, RJIL has the approval to raise up to `45,000 crore
by way of issuance of Non-Cumulative Optionally Convertible
Preference Shares (OCPS) to its existing equity shareholders on
rights basis in order to strengthen its capital structure and fund
ongoing capital expenditure. RJIL has raised `15,000 crore out
of OCPS Series II and `18,660 crore out of OCPS Series III.
Particulars
Cash and marketable securities
(`in crore)
Gross debt (`in crore)
Net debt (`in crore)
31st
March, 2017
31st
March,2016
77,226
1,96,601
1,19,375
89,969
1,80,665
90,696
The 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
Reliance’s financial discipline and prudence is reflected in the
strong credit ratings ascribed by rating agencies. The table
below depicts the credit rating profile :
Instrument Rating
Agency
S&P
BBB+
Rating Outlook Remarks
International
debt
International
debt
Long-term
debt
Long-term
debt
Moody’s
Baa2
CRISIL
India
Rating
CRISIL
AAA
Ind
AAA
Stable Two notches above India’s
sovereign rating
Stable One notch above India’s
sovereign rating
Stable Highest rating awarded by
CRISIL
Stable 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.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 110
LIQUIDITY AND TREASURY MANAGEMENT
Reliance has strong focus on effective management of its cash
flows that creates a strong buffer to deal with unexpected
calls on liquidity and ensures that all business and financial
commitments are met on time.
Sources of liquidity include operating cash flows, committed
fund and non-fund based lines from banks and a high quality
liquid investment portfolio.
The working capital requirement across the group is met
through a range of financing arrangements including Buyers
Credit, Suppliers Credit, Working Capital Demand Loan and
Packing Credit. Active management of receivables through post
shipment financing and forfaiting is also undertaken to manage
short term working capital financing requirement.
The “cash to cash cycle” is tightly monitored in order to have
smooth and continuous business operations with optimal
working capital structure.
Reliance invests in highly rated securities and has a well-
diversified portfolio. It has a mix of directly managed and
indirectly deployed portfolio through Mutual Funds. Investment
portfolio is designed to provide a stable return by efficient
allocation to various asset classes. A constant review, careful
and swift calibration of duration of Fixed Income portfolio
helped deliver superior returns and alpha over comparable
benchmarks. The investment portfolio is monitored and
operated under a prudent risk management framework.
AWARDS AND ACCOLADES
During FY 2016-17, Reliance and its subsidiaries won the
following awards for its innovative financing –
TXF Perfect 10 Top Deal of 2016 - Best Overall ECA/Project
Finance Deal of the Year; Reliance VLEC Deal
2016 Deal of the Year Award: ECA – East from Marine
Money, Reliance VLEC Deal
GTF – Shipping Debt Deal of the Year Asia – 2016; Reliance
VLEC Deal
The Asset – Best Transport Deal – 2016; Reliance VLEC Deal
Trade Finance – Deal of the Year 2016; Reliance VLEC Deal
Corporate Treasurer award for the best Trade Finance
strategy
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
111
SUSTAINABLE GROWTH AT RELIANCE - THE INTEGRATED APPROACH
Main gate Jamnagar refinery
Reliance recognises the necessity to integrate and effectively
manage environmental, financial and social considerations into
its business decisions. A robust business strategy and sound
risk management system are essential for an organisation to
mitigate its economic, environmental and social risks. The
Company has reached up to this scale on the strength of the
4 enablers which help the Company to sustain its growth,
reinforcing Reliance’s fundamental philosophy – ‘Growth is Life’.
The three enablers are:
1. Strategic Framework at RIL
2.
Integrated Approach
3. Risk and Governance
i)
ii)
Enterprise Risk Management
Reliance Management System – continuous
reinvention with effective use of technology
A. STRATEGIC FRAMEWORK AT RELIANCE
Reliance’s Group Strategic Framework sets out its strategy,
financial framework and risk management and 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 and thereby
providing guidance for each of the businesses - both
established and emerging. The setting of clear and effective
business objectives for the group is a key aspect of the
system of internal control. Reliance drives growth, value,
innovation and transformation in society by leveraging
its existing know-how and asset base and investing in
opportunities strategic to its existing businesses and those
of the future.
Refer page no. 24 & 25 of Corporate Overview for a quick
view into the strategic framework and outcome for
Reliance.
B. THE INTEGRATED APPROACH
Reliance believes in the interconnectedness of the impacts.
To enhance Reliance’s value creation and creation of a
competitive business model, the Company has adopted
the six capitals postulated as part of the International
Integrated Reporting Council’s (IIRC) framework. RIL’s
performance and impacts associated with it are collectively
referred to as ‘six capitals’ which include:
a)
Natural capital
b) Human capital
c)
Intellectual capital
d) Manufactured capital
e) Financial capital
f )
Social and Relationship capital
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
112
The Company’s financial performance is inherently linked to its optimum usage of natural resources and healthy relationships
with internal as well as external stakeholders. While RIL’s operations work towards achieving a high level of profitability, there
is a great impetus on the personal and professional development of its human capital as well. The Company is incessantly
working towards bringing about technological disruptions which prove to be the game changer in their individual industries.
While these innovative solutions ensure fast paced growth, they also help in reducing the operational footprint. The Company
ensures the efficient and optimal utilisation of its assets to gain a competitive advantage while also taking care of the
communities where it operates. RIL leverages digital technology and smart manufacturing applications to create innovative
solutions for business functions. The Company’s integrated approach to value creation encapsulates its commitment to a
sustainable future.
The Integrated Report demonstrates RIL’s continued involvement to integrate six capitals (Natural, Human, Intellectual,
Manufactured, Financial and Social and Relationship) throughout the organisation and create value for the benefit
of its stakeholders.
Natural Capital
Human Capital
Intellectual Capital
Manufactured Capital
Financial Capital
Social & Relationship Capital
C. RISK AND GOVERNANCE
Reliance recognises that effective risk management is crucial to its continued profitability and the long-term sustainability of its
businesses. The strategic aims and activities undertaken at Reliance for risk and governance are as follows:
a)
b)
An Enterprise Risk Management Framework ensures mitigation of strategic risk while seamlessly governing the execution
of operations.
Reliance Management System (RMS) seeks to build competitive advantage through continuous reinvention and use of
technology.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
113
RIL STRATEGIC FRAMEWORK
Group Strategic Framework establishes the goals of RIL. It also describes the strategic intent of RIL and the expectations and
boundaries within which each RIL business must operate.
Strategic Framework, Key Outcome and Reflections
Strategy
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.
Integrating backward -
Started with textile, then
integrated hydrocarbon
business now a significant
player in consumer facing
businesses
Global Scale
World’s largest Refinery
complex at Jamnagar
“Reliance Retail” the largest
retailer by revenue in India
Jio is shaping the
future of India through
transformative, quality and
affordable access of end to
end digital services for every
Indian and making digital
India vision a reality
Value Created
Shareholder 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
Employee Value
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
Customer Value
Reliance drives customer value through its product
innovation for customers, application and service
levels, ability to deliver a consistently better consumer
experience and its overall reputation and brand promise in
the markets it operates in
Societal Value
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
Shareholder Value
*Dividend Recommended - 110 %
*Market Capitalisation - `4,28,909 crore
31.5% Market Capitalisation CAGR, since IPO
*Improved RONW (adj.) to 16.8% up 170 bps y-o-y
(standalone)
Employee Value
Employing people from 21 nationalities including 95
foreign nationals in the leadership team
R-Voice employee engagement survey increased to 84%
*Digitised learning – launch of Digital J3
R-University: Driving employee learning and training
*Imparted >76 lakh man hours of training
Customer Value
*100 million+ Jio subscribers in 170 days from launch
*Transforming India’s telecom landscape with a
compelling customer value proposition
*Over 30 million members registered to Customer Loyalty
Programme of Reliance Retail
*86% market share in CNBC TV 18 during the annual
budget speech
*Launched 'Chemistry for Smiles' and 'Transforming Life
into Quality Life'
Societal Value
Over 50 lakhs employment generation, indirectly
*`51,399 crore contribution to national exchequer
Reliance Foundation transformed lives of 12 million
Indians across 12,500+ villages and 74 urban locations
CSR activities in conformity with SDGs
*`674 crore CSR expenditure for the year
Five Enablers
Reliance’s Group Strategy is founded
on five enablers. These include safe
operations, digital technology, capital
productivity, operational excellence and
ethics
Safety and compliance are core
values, and they help Reliance to
preserve enterprise value, and provide
a perpetual license securing its right to
operate across India and globally
Digital technologies underpin how
Reliance operates its businesses. It is
a pioneer in harnessing new digital
technologies and mobility initiatives that
change how it conducts its business
Reliance remains committed to achieve
the highest levels of operating
efficiencies and effectiveness across
all its activities, both customer facing
and internal. A mindset for continuous
improvement and processes forms the
bedrock of all its operations
Reliance is committed to conduct all its
initiatives with the highest levels of
integrity
Safety and compliance
Use of drones for safety
Digital technologies
Omni- Channel initiatives in Reliance Retail
*GST for community
Future Ready 5G, 6G and beyond
Capital Productivity
ROCE (adj.) for FY 2016-17 – 25.4%,
increase 820 bps y-o-y
*Substantial interest savings from
successful refinancing of long-term
aggregating to US$2.3 billion
Operating efficiencies and
effectiveness
Fuel retail throughput well above
industry average
Uninterrupted and high-speed data
access anywhere, anytime
Ethics
Ethics and Compliance Task
Force oversees and monitors
implementation of ethical business
practices
s
n
o
i
t
c
e
fl
e
R
y
e
K
Please Refer page 62 to 110 of management discussion & page 24 to 25
*Current year outcome
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
114
THE INTEGRATED APPROACH
NATURAL CAPITAL – CLEAN AIR, WATER AND SOIL
PAWAN KUMAR
KAPIL
PARAMJIT 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 strives to be in harmony with the ecosystem that it operates in. RIL believes that timely and sufficient availability of
natural resources is an imperative for continuity of its business operations."
MANAGING NATURAL CAPITAL AT RELIANCE
Natural capital refers to the planet's stock of water, land, air, and renewable and non-renewable resources. To ensure a robust
environment management system, Reliance focuses on the five areas depicted below:
Clean Air
Clean Water
Preventing Soil
Contamination
Preserving Flora
and Fauna
Diligent Use of
Scarce Resources
Potential
Impact
Emissions from
operations
Extraction of fresh
water and return
of effluent
Waste generation
leading to landfill
and incineration
Deforestation and
habitat loss
Operational
Philosophy
Beyond
compliance
approach to stack
emissions
Minimum reliance
on freshwater and
zero discharge
Zero spill
operation and
minimisation of
waste disposal
In-situ
preservation of
biodiversity and
ecosystems
Extraction of
non-renewable
resources
Enhanced
value addition
with optimised
consumption
Minimising
Impact
Emission
reduction and
recovery
Enhanced
reuse and
recycling, water
conservation
Maximised waste
recycling, value
from waste
Greenbelt
development and
habitat restoration
Bottom of the
barrel upgrading,
refinery efficiency
RIL
Differentiators
Promoting use of
eco-friendly fuels
resulting in lower
emissions.
Total water recycled
and desalination of
water at Jamnagar
Supersite
Largest recycler of
PET Bottles
Asia's largest mango
orchard in arid land
Targeting no
bottom of the
barrel production.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 RIL has instituted an Environment Policy in accordance
with the principles of environmental management. RIL has
constituted an ‘Environmental Compliance Review Committee’
at each manufacturing location that reviews environmental
performance every quarter, with the aim to go beyond
compliance. Reliance’s refinery and petrochemical units have
installed and commissioned on-line analysers for monitoring
emissions and discharges which are connected to PCB
servers. All the manufacturing sites have adopted ‘Integrated
Management System’ complying with Environment
(ISO- 14001), Quality (ISO-9001) and Occupational Health and
Safety Management (OHSAS-18001) Systems. As a part of
capacity building, people were trained on topics such as noise
and air dispersion modelling and life cycle assessment studies.
To spread environmental awareness, the ‘World Environment
Day’, ‘Earth Day’, ‘World Water Day’, ‘International Day for the
Preservation of Ozone Layer’, among others were celebrated
across sites with suitable programmes.
CLEAN AIR
EMISSION REDUCTIONS THROUGH CLEAN
TECHNOLOGY
RIL has taken decisive steps to improve energy efficiency in
its operations, thereby reducing greenhouse gas emission. A
dedicated team works relentlessly to identify and implement
energy conservation initiatives, resource optimisation and
renewable energy projects at all RIL’s manufacturing sites. The
Company’s initiatives on clean technology, Energy efficiency
and renewable energy include:
Clean technology
Direct synthesis of dimethyl carbonate from carbon dioxide
to lower GHG emissions.
Development of RelFarmS™, which converts by-product
sulphur into a high quality fertiliser.
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).
Renewable energy
RIL’s ‘Algae to Bio-crude’ effort aims at establishing a green
platform to achieve sustainable and economically viable
production of bio-crude by large-scale cultivation of
‘producer’ algae strains with optimal inputs of sea water,
low cost nutrients (N, P) and crop protection measures.
115
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. RIL is working to provide a better
alternative by enabling efficient conversion of this waste
agri-residue into products, such as kerosene.
Rooftop solar photo voltaic modules are being installed
across RIL manufacturing units.
Innovative applications of renewable energy such as
solar thermal integration with manufacturing processes,
biomass co-firing etc. are being evaluated.
Biogas generation facilities being installed at various sites
to process organic waste.
ILLUSTRATION: Enhancing Energy Efficiency beyond
Designed Specifications
Excess oxygen in the cracking plant leading to energy losses in
the form of fuel gas consumption.
Action Taken: In collaboration with vendor design
modification impacting the ID fan speed.
Outcome: Reduced fuel and power consumption and
consequentially reduced GHG emissions.
RIL has registered eight CDM projects with the United Nations
Framework Convention on Climate Change (UNFCCC). These
projects are related to energy efficiency, use of renewable
energy and cleaner fuels. The Company has built in-house
capacity to develop CDM projects and obtain the registration
and issuance of the same in the form of Certified Emission
Reductions (CERs) from the UNFCCC.
RIL is working towards reducing the carbon intensity of its
energy mix by implementing energy and carbon reduction
initiatives.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
116
RIL regularly monitors emissions as it is a part of its
environmental management plan. In addition to greenhouse
gas emissions, the Company closely monitors the emissions
of Total Particulate Matter (TPM), Oxides of Sulphur (SOx)
and Oxides of Nitrogen (NOx). RIL has implemented various
initiatives for emissions reduction in FY 2016-17.
ILLUSTRATION: Retrofit of Energy Efficient Equipment
At the Ethane Propane Recovery Unit (EPRU), to reduce energy
intensity beyond the design specification.
Action Taken: By way of a cause and effect analysis and
Pareto analysis, a suitable technology was identified to install
at the EPRU. After ascertaining the viability, a hydraulic power
recovery turbine was installed.
Outcome: Saving 60% of the power consumption and thereby
reduced GHG emission.
CLEAN WATER
RIL seeks to maximise water efficiency in its processes by
implementing numerous water conservation initiatives. In the
arid areas of Jamnagar, a substantial quantity of water required
for the refinery is obtained by desalination of sea water thereby
saving the fresh water resources. RIL's sites continue to make
process modifications to enhance water recycling and reuse.
KEY PERFORMANCE INDICATORS
Percentage of water recycled at
manufacturing locations (%)
FY 2016-17
FY 2015-16
45.52
44.99
ILLUSTRATION: Process Modifications beyond
original design
Some elements of Hydrocarbons like Ethylene escape into the
flare system.
Action Taken: Process modifications and installation of radar
transmitter enabled proper monitoring of the process. This
helped in reducing losses of ethylene vapor to the tune of
1MT/Hr.
Outcome: Reduction in GHG emissions with positive financial
impact.
Water conservation in a check dam at Moyari, Chhindwara,
Madhya Pradesh
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 ILLUSTRATION: Enhanced Recycling through
Advanced Water Treatment Technologies
Action Taken: Adopting advanced technologies for water
treatment, such as reverse osmosis and ultra-filtration, the
requirement for freshwater in cooling towers was replaced
with recycled water.
Outcome: Reduced consumption of freshwater.
117
PREVENTING SOIL CONTAMINATION
RIL ensures responsible disposal of waste generated by
partnering with various agencies to encourage end-of-life
recycling and reuse. The Environment policy at RIL encourages
the manufacturing divisions to take appropriate measures to
prevent environmental incidences and maximise recycle to
reduce waste generated and disposed.
The waste generated is converted into a useful ‘bio-manure’ by
vermi-composting method, thereby reducing the load of waste
disposal. The wastewater generated from the manufacturing
plants is treated and used for green-belt development, thereby
minimising effluent discharge.
Reliance has implemented the catalytic hydrothermal
liquefaction technology to convert waste plastics, such as HDPE,
PP, PBR, SBR and natural rubber to crude oil equivalent. This has
resulted in reduction of waste generation from the process.
Reliance undertakes adequate measures to prevent spills
during handling and transportation of materials. The Company
monitors spills at all its manufacturing divisions through an
online incident reporting system. Additionally, it has a robust
system to prevent operational spills. There has not been any
major accident giving rise to significant spills at Reliance’s
facilities since its inception.
ILLUSTRATION: Creating value out of waste
ILLUSTRATION: Enhancing Vinyl Chloride Monomer
(VCM) through Resource Optimisation beyond
original design standards
Certain waste generated from the operations goes for
disposal through authorised vendors through reprocessing,
incineration or landfill.
Action Taken: Feed reconfiguration scheme was installed
to offload the Recycled Ethylene Dichloride Column and to
increase plant throughput during column cleaning.
Outcome: Increase in plant production from 66% to 90-100%
of plant load, saving of 4.2 TPH of steam and saving of 0.4 TPH
boiler feed water.
Action Taken: RIL collaborated with cement industries to
utilise waste as a fuel in the cement manufacturing process.
Outcome: Reduced consumption of non-renewable energy,
financial saving, emission reduction and waste minimisation.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 118
PRESERVATION OF FLORA AND FAUNA
RIL conducts environment impact assessments for all new and
expansion projects and engages external experts to undertake
periodic monitoring of its impacts on biodiversity. In FY 2016-17,
a site specific Biodiversity Assessment study was completed at
Hazira Manufacturing Division.
DILIGENT USAGE OF SCARCE RESOURCES
In order to increase material efficiency, 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 in its operations and
spent catalysts through authorised re-processors.
To promote biodiversity, more than 1.38 crore saplings have
been planted across all RIL sites and other intervention areas till
date. RIL has also added 5,129 acres of green belt, a contribution
from all manufacturing divisions since inception.
Through a unique partnership with Ministry of Environment
and Forests, Government of India and Gujarat Ecological
Commission, RIL is involved in setting up the National Centre for
Marine Biodiversity (NCMB) - India's first Centre of Excellence for
the study of India's coastal biodiversity at Jamnagar.
RIL’s refineries have continued to remain in top quartile
performance based on Solomon’s energy intensity index.
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 (GRM). With the completion of
Gasification plant, Paraxylene plant, ROGC plant and associated
units, Reliance’s Jamnagar will be among the highest conversion
refineries globally, with no ‘bottom-of-the-barrel’ products.
Jamnagar admin block
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 119
ILLUSTRATION: Reducing Material Intensity through
100% Recycled Products
ILLUSTRATION: Throughput Enhancement through
Retrofitting
PET bottles which are non-biodegradable in nature, after
disposal, lead to environmental degradation.
Action Taken: Recron Green Gold Polyester Staple fibre is
produced by a highly eco-friendly process; apart from being
made from 100% recycled PET bottles, it also uses 90%
recycled water.
Scale of Impact: RIL is recycling about 60,000 tonnes/year of
polyester waste.
Outcome: Removal of non-biodegradable waste from the
environment and diligent use of scarce resources.
Action: Increased refrigeration capacity by freeing up
refrigeration compressor duty using existing resources.
A fraction of the liquid refrigerant was purged to remove
propane content thereby removing accumulation. A spare
compressor was retrofitted to compress purge stream and
divert the stream to the De-Propaniser column.
Outcome: Increased alkyl production by 200- 300 tonnes per
day, increase in refrigeration capacity and increased plant
throughput.
ILLUSTRATION: Process Modification beyond design
for Reduced Chemical Consumption
Action Taken: Temperature variation sensor and
thermometer were attached with silicon vial to check actual
temperature setting. Stirring rate while heating was optimised
for proper dissolution of sample.
Outcome: Reduced consumption of scarce chemical.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 120
KEY NATURAL CAPITAL INPUTS
Total rain water harvesting capacities of over 5 crore cubic metres created since inception.
Total saplings planted 1.38+ crore till date.
KEY NATURAL CAPITAL OUTPUTS
Water recycled (%)
Increase in Materials recycled.
Initiatives for the deployment of renewable energy.
No pending or unresolved show cause/ legal notices received from CPCB/SPCB.
Environmental Commitment beyond compliance.
KEY NATURAL CAPITAL OUTCOMES
FY 2016-17
FY 2015-16
45.5
45.0
The Company’s intent is to ensure minimisation of environmental impact through mitigation and offset initiatives. While positive
impacts like enhanced renewable portfolio and enhanced water and waste recycling help RIL offset negative impacts, mitigation
of unavoidable impacts is carried out through advanced technological interventions such as clean technologies and investment in
pollution control equipment.
CONTINUOUS IMPROVEMENT
OVER 5 YEARS (MANUFACTURING
LOCATIONS)
Increase in Material Recycled
Continuous focus on increase in water
recycled
Exponential increase in total saplings
planted
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
121
HUMAN CAPITAL
HITAL R. MESWANI
ASHWANI PRASHARA
“The values and behaviours at RIL have inculcated a deeper sense of connect and engagement for its people. Reliance fosters
a culture that is performance oriented, promotes rewards for results and helps its people grow. RIL’s workforce is one of the
most critical resources for the Company and it is working tirelessly to foster a growth driven culture. Over the last couple of
years the Company has brought about a major transformation in its approach towards human resource management through
the R-HR transformation journey. The focus is on development of employees at professional and personal levels using a
pioneering, integrated approach to provide world-class HR service delivery to all its employees. The Community development
initiatives seek to promote equitable economic growth and ensure a more sustainable, inclusive and people centric
development. RIL has enhanced its existing systems and processes to capture the overall impact on community through
various media and initiatives.”
Diversity at Reliance
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 122
CREATING EMPLOYMENT OPPORTUNITIES
The Reliance Group is one of the biggest private sector employers in the country that has created employment for more than 1.40
lakh individuals. Through Jio, employment opportunities were created directly and indirectly for more than 50 lakh people. Reliance
continues to maintain a progressive people environment, where purpose driven talent is attracted, engaged and motivated by a
consistent, meritocratic HR framework.
RIL’s expansion into diversified segments requires special skill sets. RIL’s entrepreneurial culture is aimed to encourage the young
generation to play a vital role in the organisation's growth.
WORKFORCE BREAKDOWN
( RELIANCE GROUP)
WORKFORCE BREAKDOWN
( RELIANCE GROUP)
Age wise
Gender wise
9,449 (7%)
67,720 (48%)
1,23,594 (88%)
63,314 (45%)
16,889 (12%)
Less than 30 years
30-50 years
More than 50 years
Male
Female
ILLUSTRATION: Integrating Values and Behaviors
(V&B)
Action Taken: V&B is integrated in all of RIL’s business
processes namely; R-Performance, R-Rewards, hiring processes
and talent management processes such as Career Acceleration
Program, annual talent review. It is also the backbone of the
internal audit process.
Outcome: V&B of Reliance has helped in instilling a deeper
connect among its stakeholders.
NURTURING AND MANAGING TALENT
RIL nurtures its people by placing great emphasis on learning
and development, career progression and employee welfare.
In its journey to become a learning organisation, Reliance
has been immensely focused on developing individual and
organisational learning agility. The organisation has taken
big steps to focus its learning investment on developing the
technical, functional and leadership capabilities needed to
drive future business growth. Reliance has taken big strides in
enhancing accessibility of training programmes and maximising
organisational performance through business aligned
investments, enhancing connectedness and automation.
Through R-University, Reliance has accredited 13 academies
and streamlined governance through Group Learning Council,
Reliance University Council and Academy Council.
The Company continues to develop top talent from its
people by ensuring easy access to innovative and relevant
learning. A key pillar of the learning strategy at Reliance is the
democratisation, digitisation and fostering of a learning culture.
Reliance strengthened the collaborative learning culture by
inculcating next generation Social Media technologies. RIL
launched the Digital J3, a device agnostic Video and Text
blogging platform, for employees to record and share their
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 123
learning experience, ask questions, and start discussions with
peers across Reliance. Over 23,000 employees used the various
social learning platforms, viewed more than 5.5 lakh pages, and
created 171 video blogs and more than 500 text blogs.
Reliance aims to nurture talent and potential leaders at all levels
of career development to provide a robust pipeline of new age
leaders for tomorrow. For the FY 2016-17, 16 senior leaders have
been identified for the step up program to shoulder larger roles
at group leadership levels.
Additionally, FY 2016-17 witnessed the successful launch
of second edition of the flagship Career Acceleration
Program (CAP) which identifies and develops young talented
professionals with a high potential. Of the 46 participants of
CAP 2016 batch, 21 have been given the platform to progress
their careers either through promotions or job enhancements.
In FY 2016-17, Reliance imparted 76+ lakh man-hours of
training to its people across the group. Other than permanent
employees, contract staff were also covered through various
training programs.
The strategic learning partnerships with professional
organisations like Skillsoft, Corporate Executive Board, among
others and with renowned business thinkers like Josh Bersin
and Gary Hamel have provided its employees access to world-
class opportunities to learn and enhance their professional and
personal skills.
Modernised Learning
Digitised learning – launch of Digital J3
Modular approach – 13 learning academies
Cloud-based learning
Innovation Culture
Learning partnerships – Skillsoft, CEB
Interventions by globally renowned management gurus –
Gary Hamel and Josh Bersin
Leadership Pipeline
Step-Up Programs – 16 senior leaders identified
Career Acceleration Program – 21 CAP participants
promoted in 2016
In FY 2016-17, a GST Awareness Campaign was driven through
the social learning platform and was provided to 19000+
employees, to build knowledge around Goods and Services Tax
and how it impacts citizens of India and the businesses
at Reliance.
To encourage employees to experience broad range of learning
modes, Reliance launched a culture building initiative called
SPECTRUM covering 18000+ employees which manifested in
the organisation witnessing a significant increase in learning
hours contributed by the digital channel.
Reliance has sown the seeds for Player – Coach Culture by
initiation of INSPIRE program. The program has leaders across
the organisation coming forward to teach, share experiences,
mentor and coach the new generation to exhibit their
commitment towards learning.
As part of its Learning Strategy, Reliance is now focused on
enabling full cycle/self-paced/ongoing capability development
through anytime, anywhere access to personalised, on-demand
learning resources. One of the key focus areas for Reliance
is to enable self-driven career management and dynamic
development needs identification (independent of organisation
structure) followed by driving in-role excellence and enabling
self-review of desired vs existing state using a comprehensive
talent construct encompassing capabilities, qualifications,
experiences, traits and drivers.
Reliance is making significant progress in Learning Analytics
and Evaluation to gather specific insights from integrated
systems to enable a seamless learning experience for the
learner and the learning management for the organisation.
DIVERSITY AND INCLUSION
Reliance recognises and respects different cultures, national
origin, race, religion and sexual orientation. Reliance focuses on
three aspects of diversity: gender diversity, multigenerational
diversity and inclusivity.
The Company promotes equal opportunity for all its employees
and employs people from 21 nationalities including 95 foreign
nationals in the leadership team. Employee strength as on
31st March, 2017 for RIL is 24,167 which includes 1,226 female
employees. RIL supports and creates awareness on employing
differently abled employees. The total number of permanent
employees with disabilities as on 31st March 2017 was 71.
Reliance is committed to building a system that encourages
the development of future leaders from within the folds of
the Company. Dedicated to special needs of women in the
workforce, the Company has laid emphasis on implementing
next-generation policies like 6 month’s maternity leave followed
by 6 month’s part-time working to help new mothers balance
child-care priorities with work. RIL has undertaken pro-active
measures such as 24x7 toll-free helpline for women, reserved
parking for expectant mothers, self-defense workshop among
others. R-Aadya is a common platform for women employees
to connect, converse and collaborate. The program is designed
to give them opportunities through its 4 pillars which include
providing mentorship conversations, leadership interactions,
forums and conferences and trainings and workshops
(Classroom and E-learnings).
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
124
EMPLOYEE BREAKDOWN
(RIL)
1%
2%
24%
12%
4%
57%
Apprentices
Executive
Manager
Non-Supervisors
Leader
Trainees
ILLUSTRATION: Ultimate Pitch – Collaborating with
30 leading B-Schools
Action Taken: RIL launched an event across 30 leading Indian
B-Schools, employing an innovative digital screening process
to assess prospective candidates with creative business ideas.
The finalists pitched a range of ideas, such as utilisation of
solar energy for cars, online tailoring, educational revolution,
vehicle customisation on hybrid platform, and many more.
12 best teams presented ideas at The Grand Finale, before
eminent industry stalwarts. The winners in addition to a cash
prize also got the opportunity to be mentored by Reliance’s
GenNext Hub to turn their ideas into reality.
Outcome: Harnessing fresh talent.
HEALTH AND WELLBEING
Reliance’s state of the art facilities provide a healthy working
environment for its employees. Periodic medical examinations
are carried out for all the employees and their spouses. Health
score is generated through Health Management System (HMS)
for each individual. Round the clock emergency medical
services are provided to all Reliance employees and their family
members across the country through strategic tie–ups with
multi-specialty hospitals. Occupational Health Centres (OHC)
located at each of the manufacturing locations and corporate
office offers preventive, promotive, curative and rehabilitative
health services.
“Reliance Employee and Family Emergency Response Services
(REFERS)” offers round-the-clock assistance in case of any
medical, accident, fire and security exigencies to employees and
their family. “R-Swasthya”, creates a culture where its employees
choose to live healthier lifestyles. Reliance promotes wellness
culture among employees and family members. It organises
Good Health and Health improvement awards across all its
locations. JioHealthHub, an IT-enabled platform, simplifies
management of health records by enabling the users to upload
medical data and maintain a medical profile. Additionally, RIL
owns web based Health Management System (HMS), which is a
robust databank containing health records of all the employees.
ILLUSTRATION: Monitoring Reliance Employee
Health Index
RIL has designed and launched health score generated
through its own web based Health Management System
(HMS) after completion of periodic medical examination.
Health score is calculated based on parameters such as family
and past history, exercise, addiction to smoking and alcohol,
medical test results and presence of any disease. Based on
health score, the employee is mapped into Red, Yellow or
Green zone.
Green Zone: Health score above 90 - (low risk employees) -
Needs regular Health check up.
Yellow Zone: Health score is between 71 to 90 - (Mild risk –
presence of any 1-2 risk factors)- needs periodic follow up and
Regular Health check up.
Red Zone: Health score below 70 - (Moderate risk – presence
of multiple risk factors) – needs focused attention by Chief
Medical Officer (CMO) and regular Health check up.
Outcome: Healthier workforce.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 Task Based Health Risk Assessment (TBHRA) is a unique program
which has given focused approach to evaluate the effect of
occupational hazards on individuals specific to their tasks and
also provide exposure data linked to each employee or group
of employees during medical surveillance. The Company
undertook an ambitious work life balance (mental health
program) Project “WISH” across all locations with a focus on
emotional health.
RIL started the ‘Change Agents for Safety Health and
Environment’ (CASHe) programme more than a decade
ago. Over the years, the CASHe programme has evolved
into a movement encompassing the entire enterprise with
thousands of improvement projects. The programme has
been instrumental in creating a culture of implementing
health, safety and environment projects on a priority basis. The
program has helped in reducing Health and Safety risks across
the Company and over 1500 projects have been identified and
control measures implemented till date.
The Company's OHCs are equipped with state-of-the-art
diagnostic and therapeutic equipment. They are recognised
by highly reputed agencies including the Joint Commission
International (JCI), National Accreditation Board for Hospitals,
and National Accreditation Board for Laboratories (NABL)
among others.
Reliance has achieved the first Platinum healthy workplaces
award from the Arogya World India Trust in collaboration with
Public Health Foundation of India.
During the FY 2016-17, RIL invested `367.4 crores on HSE
initiatives.
SAFETY
The Company’s commitment towards providing a healthy and
safe work environment to its employees, contractors, and all the
visitors forms the foundation of its safety processes. Reliance’s
ultimate goal is to establish a zero accident work environment.
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 supported by a Centre of Excellence at the Corporate, which
brings in subject matter expertise in various fields of HSE, apart
from governance. RIL has implemented ‘Learning from Incidents’
across its sites to interpret incidents and make improvements
in the existing practices. A team of qualified specialists provides
recommendations and the action plan is monitored through a
comprehensive and robust tracking system to ensure complete
adoptability of the plan. Delivering safe, compliant and reliable
operations leads to a sustainable competitive advantage.
125
ILLUSTRATION: Elimination of Safety Hazard
through Process Modification
Highly corrosive sulphuric acid was handled every day at CPP
for dosing in cooling towers posing a risk of spillage.
Action Taken: The use of sulphuric acid in the cooling tower
was eliminated by using the cationic outlet water from the DM
plant.
Outcome: Safer working environment.
ILLUSTRATION: Reduced HSE Risks through CASHe
Reduction of the morbidity and the mortality due to
occupational Hazards.
Action Taken: CASHe is an innovative project introduced
in 2003 by RIL’s Medical team with a proactive approach to
reduce occupational hazards, leading to a hazard free working
environment for all RIL employees. To achieve this, the CASHe
team with the project coordinator developed a strategy that
included a detailed action plan, weekly and monthly review
meetings, periodic monitoring and creating awareness
towards occupational health and safety.
Outcome: This initiative has helped Reliance to eliminate
occupational hazards in several processes.
ETHICS AND HUMAN RIGHTS
The Company’s Code of Conduct ensures that all its employees,
suppliers and vendors are required to respect human rights
of not only each other, but also of the community in which
it operates. As RIL grows, it needs to ensure that ethics and
compliance remain the foundation of its business practices.
RIL has instituted a set of policies, codes, and guidelines to
govern its employees. This mechanism includes directors, senior
executives, officers, employees (whether permanent, fixed-
term or temporary), and third parties including suppliers and
business partners associated with RIL. The well-defined policy
lists tenets on ethical business conduct, definitions and the
framework for reporting concerns.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 126
An Ethics and Compliance Task Force has been established
which oversees and monitors implementation of ethical
business practices within Reliance. It comprises of the Reliance
Group Head of HR, General Counsel, Group Controller and
Group Company Secretary. The Company has various grievance
redressal channels to deal with issues related to ethics and non-
compliance.
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 strives to comply
with all global norms on human rights, including the principles
outlined in the United Nation’s Universal Declaration of Human
Rights. RIL has formed Internal Complaints Committees at all
of its operational locations where employees can register their
complaints against sexual harassment. This is supported by
the Anti-Sexual Harassment Policy which ensures a free and
fair enquiry process with clear timelines for resolution. All
employees are sensitised on these topics through structured
training programmes. No cases of child labour, forced labour,
involuntary labour, sexual harassment and discriminatory
employment were reported during the period.
FREEDOM OF ASSOCIATION
The Company has recognised employee unions and
associations at various sites, which encourage the employees
to participate freely in constructive dialogue with the
management. Almost 100% of its non-supervisory permanent
employees at its manufacturing locations are covered under the
collective bargaining agreements with trade unions which also
comply with the local and national laws.
LEADERSHIP EXPECTATIONS
Leadership behavioural change begins with a clear definition of
what is expected from RIL's leaders. RIL has a defined Leadership
Expectations (LEs) framework applicable to all senior level
and group level leaders. LEs serve as a consistent guiding
compass in how RIL operates, how it leads effectively, how it
makes decisions and what it judges to be important. A shift in
the profile of RIL's leaders is taking place, as it progresses on
embedding LEs. Reliance is working on creating awareness
about Leadership Expectations through R-Radio interviews and
blogs of leaders in which they share about their own personal
experiences on four different components of Leadership
Expectations i.e. Act Decisively, Deliver Results, Value Expertise
and Inspire People. RIL is also conducting targeted workshops
to create role models at leadership levels. RIL's new behavioural
learning interventions under “The Learning Curve” and
leadership development programs are based on its Leadership
Expectations framework.
EMPLOYEE ENGAGEMENT
Leadership connect with employees through multiple channels
like Leadership Talk, webcasts, governance meetings. R-VOICE
is a fully confidential employee feedback survey to gain
actionable insights into making the Company a great place to
work. It is a platform to understand the employee sentiment
on leadership support, manager support, work environment,
and performance and benefits. As a result, Reliance’s Leadership
Support score in the survey has increased to 84% which is
9% points above global benchmark. The engagement scores
have shown a steady improvement in the last 3 years with
highest improvement observed in leadership support scores in
the areas of vision communication and leadership trust. Peer
recognition programme – “R-Sammaan” encourages individuals
to acknowledge the contributions from their colleagues. Large
scale events such as ‘Bring Your Family to Work’ week and
‘Reliance Founder’s Day’ are lasting memories for its employees.
Business Today recognised Reliance as one of the top 25 best
companies to work in India. Reliance is moving away from
the ‘structured workspace’ concept and fast embracing a
collaborative and inclusive open office concept, for which RIL
has won the Herman Miller-REACH award in 2016.
HR TRANSFORMATION JOURNEY
In pursuit of excellence, RIL has defined world-class HR
practices through its R-HR Transformation journey. Reliance has
transformed as an organisation in terms of its policies, processes
and systems. FY 2016-17 evidenced the first year of operations
post RIL’s HR Transformation initiatives where-in it continued
to improve, streamline and integrate its processes while
embarking on a journey of digitisation and automation. At RIL,
autonomous, self-sufficient teams were created for handling
responsibility for specific business outcomes to drive employee
empowerment and smooth decision making. This inculcated
a culture of meritocracy, transparency, empowerment and
entrepreneurship across the organisation.
Wave 1 R-Empowerment, R-Performance and R-Rewards
Wave 2 R-Talent
Wave 3 R-Careers
Wave 4 R-Learning and Development
2013-14
2014-15
2015-16
2016-17
HR Platform is a pioneering HR service which leverages micro-
services architecture to provide seamless and real-time delivery
and resolution of business requirements.
Human Resources – Governance, Integration, Risk and
Assurance Team, focusses on strategically driving key
people-focused transformational initiatives across Reliance. It
establishes governance and related management assurance
processes. It facilitates in adoption of progressive HR policies
and institutionalising governance meetings – from team level to
the highest governing body.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 KEY HUMAN CAPITAL INPUTS
Total employees (Nos.)
RIL HSE expenses (`crore)
127
FY 2016-17
FY 2015-16
1,40,483
367.4
1,22,032
337.3
Implementation of R-HR Transformation to create world class HR practices.
A diverse and representative executive leadership team.
Implementation of Operating Management Systems for reduction in Health, Safety, Security and Environment (HSSE) risks.
Strategic prioritisation through a single learning entity called R-University.
Collaboration with renowned business thinkers like Josh Bersin and Gary Hamel to create innovation culture.
Career Acceleration Program (CAP) for employees to groom them for leadership roles.
KEY HUMAN CAPITAL OUTPUTS
Female professionals occupying key Leadership positions (Nos.)
Ranked among the top 25 companies for ‘Best companies to work for all’ survey.
76+ lakh man-hours training provided to its people.
FY 2016-17
FY 2015-16
87
73
Reliance’s Leadership Support score in the Company’s R-Voice employee engagement survey increased to 84%.
Health and Safety at work dimension within the ‘Employee Engagement Framework’ achieved a score of 93%, which is 8%
more than the Kenexa Global Standard.
Collaboration with various universities.
KEY HUMAN CAPITAL OUTCOMES
Reliance continues to attract top talent in the industry and has emerged as the biggest private sector employer which has created
employment for 1.4 lakh individuals. Through Jio, employment opportunities were created for more than 50 lakh people. Culture
of diversity and equal opportunity to all its employees.
CONTINUOUS IMPROVEMENT OVER
5 YEARS
220.6%
Increased women workforce
209.3%
Increased total work force
48.7%
Increase in HSE expenditure
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
128
INTELLECTUAL CAPITAL
HITAL R. MESWANI
AJIT SAPRE
DR. J. V. KELKAR
GERARD DENAZELLE
SUKETU VAKIL
“RIL has leveraged its competitive advantage emanating from its world class assets at its operations. RIL’s transition from a
smart buyer of technology to a fast customiser of technology and a flagship developer through largely inhouse developed
technology has helped the Company create significant value. A strong focus on development of novel and proprietary
technological progressions have prodded RIL on a path of accelerated growth and improved profitability.”
Scientist working at R&D Lab
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 129
RESEARCH AND TECHNOLOGY
R&D MEGA TRENDS
There is an increasing focus on renewables and a low carbon economy. The demand for advance materials is increasing and the
commodity chemicals are giving way to high performance specialty polymers and chemicals. It is evident that intelligent nano
materials and bio materials will transform the society. Digitisation and advance analytics will enable maximisation of value from
existing operations.
R&D Journey-Key Milestones
2001
Reliance first
generation PP
catalyst technology
development
2006
Development of
Relox catalysts for
PET plants
2007
Advance Reliance
Spinning technology
developed
2013
Commissioning of
coker pilot plant
(1 BPD) at Jamnagar
2002
1st RIL-DuPont
joint technology
development
program
2005
In-house polyester
spin finish
developed
2009
Commissioning
of R&D centre at
Jamnagar
2012
Commissioning of
CPVC pilot plant at
Vadodara
2003
Polyester R&D
centre started at
Patalganga
2004
Reliance second
generation PP
catalyst technology
development
2010
Catalyst for colour
and productivity
Improvement for
PET
2011
Pilot compounding
facility
commissioned at
Patalganga
2014
R&D Navi Mumbai
state-of-the-art
facility became fully
functional
2015
Developed a
patented process for
catalytic gasification
of petcoke and coal
2017
Jio successfully adopted LTE using both Time Division
Duplex (LTETDD) and Frequency Division Duplex (LTE-
FDD) technology for its wireless broadband services
along with filing 54 patents (developed inhouse) for
the path-breaking initiatives
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 130
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 a significant
value. R&D enables the innovation based growth agenda for
Reliance.
R&D ORGANISATION
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
Breakthrough R&D for potential new businesses
R&D to support near-term needs and step-out processes
for existing businesses
The entire R&D organisation enthusiastically embraces
Reliance’s Values, Behaviors and Code of Conduct. Risk
management is an integral component of the strategic
framework. R&D has also implemented initiatives such as New
Product Development and Introduction (NPDI), Stage-Gate,
Electronic lab notebook etc. to formally manage innovation.
BREAKTHROUGH R&D
Some of the focus areas in the Company’s breakthrough R&D
are as mentioned below:
BIOFUELS AND BIOCHEMICALS (ALGAE TO OIL):
Through its Algae to Oil initiative that converts sun’s energy
& CO2 to Hydrocarbons, RIL is exploring multidisciplinary
biology and engineering scientific streams in order to create
a safe and sustainable source of biofuels, biochemicals and
nutritional products. RIL has developed some of the world’s
most innovative algae cultivation systems, which the Company
is using for its path-breaking research. Algae bio-crude would
not only help reduce India’s dependence on energy import, but
also fortify the rural economy by creating jobs. Demonstration
facilities have been commissioned in both open pond and
photo-bioreactor (PBR) systems at RIL's world-class algae
development and demonstration facility near Jamnagar.
RIL has set a landmark in biofuels industry by commissioning
the world’s largest Hydrothermal Liquefaction (HTL)
demonstration unit at R&D Biofuels site at Gagwa.
BIODIESEL (JATROPHA)
RIL has made significant progress in the development of high
yielding Jatropha hybrids. The hybrids will be ready for field
testing in the subsequent year. RIL is also partnering with global
leaders in hybrid development and evaluation with an objective
of setting together best technology available worldwide. If
the technology development is successful, it will help create
a resource to enable production of biodiesel, helping address
energy security needs for India.
FUEL CELL
Work is underway to develop Polymer Electrolyte Membrane
(PEM) fuel cell. 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 PEM fuel cell technology development.
A 3 kilowatt electric capacity fuel cell has been successfully
demonstrated. Based on this technology, a complete fuel cell
based system prototype, meeting the technical and cost targets,
is being developed and tested in field applications for eventual
deployment.
COAL BED METHANE (CBM)
Work is underway to develop a technology to produce methane
from underground coal reserves which will help to increase
production of coal-bed methane. The Bio CBM process is
targeted at converting unminable coal to methane, a fuel that
can improve our country’s energy security. The unminable coal,
if not redeemed for its value in the form of methane production,
would be a waste of natural resources.
Various simulation studies have been undertaken to understand
the effect of coal field parameters. Commercially viable
productivity of methane has been demonstrated in the lab scale
using a nutrient rich medium. Further optimisation to bring
down the cost is underway.
NEAR-TERM R&D
Reliance has emerged as a world class developer of new and
sustainable technologies in alignment with global mega trends
with its R&D Group leading the way. Some of the key initiatives
in this direction are as mentioned below:
POLYPROPYLENE (PP) GRADES USING RELIANCE
PROPRIETARY IN HOUSE DEVELOPED CATALYST
TECHNOLOGY
RIL has achieved the development and commercialisation of
RIL proprietary precursor RELSTM and catalyst RELCATTM for
polymerisation of propylene to produce different grades of
PP required for different market sectors in record time. The
development is protected with more than 40 patents filed and
granted globally.
This in-house technology development has placed RIL and India
in the global league of catalyst technology owners.
VALUE ADDITION TO REFINERY SULPHUR
RIL has developed an innovative sulphur based fertiliser
RelFarmS that is more efficient in crop yield compared to
conventional sulphur fertilisers and can effectively remediate
sodic soils making them usable for agriculture. RIL has
developed a proprietary sulphur based additive “RelBitS”
for producing sulphur extend asphalt for road pavement
application. Replacement of 20-30% of bitumen with RelBitS
helps to improve the quality of a road in terms of mechanical
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
131
Till date, 30% Asbestos fiber replacement is proved successfully
and further research is being carried out to develop the product
for replacement of 100% Asbestos. This project will reduce the
overall imports of the Asbestos in the country.
R&D PRODUCT STEWARDSHIP
R&D REFINING
The key focus areas for R&D in Refining domain are coking,
hydro processing, Fluidised Catalytic Cracking (FCC), reforming,
crude processing, reliability improvement and process
optimisation, based on molecular level characterisation and
models. The Company is also venturing into new areas like
biomass gasification, value addition/utilisation of refinery
byproduct sulphur and nanotechnology-based applications
besides conventional refining areas. The Company is also
looking into areas like syngas conversion to chemicals and value
addition of refinery by-product streams like metal recovery from
slate.
R&D PETROCHEMICALS
Reliance Petrochemicals R&D supports aromatic complexes,
olefin crackers, polymers, fibre intermediates, LAB, polyester
and effluent treatment. The focus areas include:
Efficient asset utilisation/asset renewal/capability building
Development of specialty product grades/materials/
catalysts
Enhancing green quotient of the processes/products by
developing eco-friendly processes/products
Value addition to by-product streams to enhance
profitability
Leveraging opportunities at the chemicals/oil interface
ADVANCE PROCESS CONTROL (APC) & REAL TIME
OPTIMISATION (RTO)
At Reliance, there is a strong focus on improving and optimising
process units continuously by minimising process variations,
increasing unit throughput, optimsing yield and minimising
utility consumption through APC and RTO applications. With
a strong APC/RTO team, which does in-house implementation
(from concept to commissioning) and maintenance, RIL ensures
improved stability, reliability and profitability of the process
units in a sustainable manner. RIL has close to 200 APC/RTO
applications running continuously in 66 different units of
Refinery, Petrochemical and Polymer plants optimising and
utilising assets to the full potential.
strength, corrosion and water resistance, marshal stability,
fatigue, resilient modulus etc.
MULTI ZONE CATALYTIC CRACKING (MCC) PROCESS
MCC is a new process developed for direct cracking of crude
along with other distress streams for maximising propylene,
ethylene and Benzene, Toluene and Xylene (BTX) yields.
This technology combines several processes in a single riser
platform which is unique and first time in the world, leading
to reduction in cost of production of olefins. MCC technology
development demonstrates the fundamental transformation of
RIL from technology in-licensor to flagship developer of world
class refining technologies. RIL has been granted patents in
USA, Australia and Singapore.
ENHANCED PROPYLENE RECOVERY TECHNOLOGY
(EPR) IN FLUIDISED CATALYTIC CRACKING (FCC)
RIL has developed and implemented an innovative and unique
process which has enhanced recovery of propylene and LPG
from the fuel gas at minimal additional operating cost. The
EPR process can be implemented in both existing as well as
grass-root FCC units, particularly in high capacity and high
severity units. The process has been patented worldwide and
has received multiple awards namely Petrofed, International
Chamber of Commerce (ICC), and Indian Institute of Chemical
Engineers (IIChe).
R&D – HEALTH, SAFETY AND
ENVIRONMENT (HSE)
R&D at RIL gives a lot of emphasis on HSE, few examples of R&D
initiatives focusing on HSE are mentioned below:
A. RIL’S LOW COST CO2 CAPTURE PROCESS
Capturing industrial CO2 emissions is a key to sustainability
and environmental protection. RIL has developed an
innovative fluid bed process that can capture CO2 from flue
gas and other industrial emissions at a 70% lower operating
cost than existing amine systems. This technology makes it
practical to produce chemicals from CO2 and also provides
feedstock for biological systems such as algae based
products.
B.
REPLACEMENT OF ASBESTOS FIBRE IN CEMENT
ROOF SHEET PRODUCT BY USING SHORTCUT
POLYESTER FIBRE
Asbestos is a naturally occurring mineral found in
underground rock formations. Mining of Asbestos in
banned in India due to accompanying health hazards,
but its usage is not. Thus, the industry depends on 100%
imports. RIL is working on replacement of Asbestos fiber
in cement roofing sheets which are used for sheds and
poor people’s huts, with the application of cost effective
new engineered Recron® 3s fibers. They also have a
better affinity with cement and improves the working
performance.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
132
ILLUSTRATION: Reducing Separation Cycle Time
A lot of time was spent on analysing Argon and Oxygen
component separation.
Action Taken: At RIL-Dahej, with the help of cause and
effect analysis, Pareto Chart and Why-Why technique it was
identified that to separate Argon and Oxygen, the Company
is required to achieve desired temperature. To achieve this an
in-house chilling facility was created.
Outcome: Reduced analysis cycle time and improved
analytical reliability.
R&D JIO
Jio envisages to usher in the era of “visuality”, where video will
replace voice as the new communication medium. It is future
ready and can be upgraded as technologies advance to 5G, 6G
and beyond. Jio has so far filed 54 global patents.
R&D ENABLERS
INFRASTRUCTURE
The state-of-the-art R&D department, headquartered in Navi
Mumbai, is supported by regional R&D centres spread across
India. The Company’s R&D centres are among the best equipped
in the country for conducting high end interdisciplinary
research.
Scientist working at R&D Lab
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 133
R&D Centres Focus Areas
Navi Mumbai Catalysis, chemistry, process engineering, modelling, simulation, material science, synthetic biology, biotechnology,
Hazira
Vadodara
Patalganga
Jamnagar
Gagva
Samalkot
Naroda
downstream polymer processing, product applications and advanced analytical
Polypropylene catalysis, and pilot scale testing
Catalysts, adsorbents, organic chemistry, process development, applied biology, environmental science, and polymer
applications and technologies, elastomer application and technologies
Polyester materials, processes, products and applications
Crude characterisation, process research, and pilot scale facilities for supporting refining operations and renewable energy
technology development
Pilot plants in over 40 acres of land to develop algae on sea water and convert biomass to biofuel for biofuels
Biotechnology for biofuels
Performance properties for apparel fabrics and auto textiles
COLLABORATION
Reliance continues to actively collaborate with various reputed
institutes/partners in India and overseas. Some of Reliance’s
prominent collaborators are: University of Helsinki (Finland),
Pacific Northwest National Laboratory, ICGEB(New Delhi),
Bharathidasan University, Ruia college, 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
RIL runs initiatives and campus recruitment drives across
universities and colleges to attract fresh talent and the next
generations of engineers and scientists. To support RIL’s
research and development activity, RIL has a highly talented
pool of 900+ scientists, technologists and engineers from
reputed Indian and international institutes, few of them are
listed below:
Florida State University
Massachusetts Institute of Technology
Washington University St Louis
Louisiana State University
Indian Institute of Science, Bangalore
Indian Institute of Technology (IIT) – Mumbai, Delhi,
Kharagpur , Kanpur, Chennai
National Chemical Laboratory (NCL) , Pune
Some of these scientists are having membership or fellowship
in reputed bodies viz. IIChe, NBRI & FANE among others.
INTERNAL CROWD SOURCING
The R&D Social platform enables the researchers to blog their
ideas and seek feedback from an internal community similar
to social networking exploiting efficient digital technology
platforms.
INTELLECTUAL PROPERTY
Reliance has emerged as an active patent filer in recent years.
The company is continuing its efforts towards building a
cohesive, comprehensive and business-aligned patent portfolio.
In FY 2016-17, a total of 60 patents were granted to Reliance.
Reliance has qualified in the Asia IP Elite, a selected club
featuring companies from Asia Pacific region which emphasise
on integrating intellectual property with commercial decision
making. This recognition has been granted by the publisher of
“Intellectual Asset Management”, a leading Europe-based
bi-monthly magazine.
ILLUSTRATION: Partnering for Innovation
Action Taken: RIL has joined hands with GE to work in the
Industrial Internet of Things space to build joint applications
under the leadership of Shri Mukesh D. Ambani and
Shri Jeff Immelt.
Outcome in progress: RIL is developing solutions on
Predix and offer nationwide connectivity through Jio and
GE will provide its Predix cloud offering, Industrial Internet
applications, data science expertise, security, availability,
and monitoring aspects of the platform which will provide
solutions to customers in oil and gas, fertiliser, power,
healthcare, telecom etc.
DIGITISATION IN R&D
R&D is continuously developing and implementing fit-for-
purpose management systems, work processes and tools
for achieving technical excellence. It also aims to create a
high performance environment for people to innovate and
contribute towards organisation & individual growth. Few of
the examples of digitisation and process centric initiatives are
mentioned below:
A)
NEW PRODUCT DEVELOPMENT &
INTRODUCTION (NPDI)
RIL has implemented a SAP based tool to manage R&D
projects using a structured stage gate based methodology.
This is an end to end digital process chain from “Concept to
Commercialisation”.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
134
B) ELECTRONIC LABORATORY NOTEBOOK (ELN)
RIL has implemented best in class Electronic Laboratory
Notebook (ELN) which is seamlessly integrated with
Laboratory Information Management System (LIMS) as
part of R&D digitisation initiatives to establish a robust
and reliable laboratory execution systems. ELN user
interface is entirely flexible and can be tailored by creating
experiment templates that allow the scientist to easily
enter information as well as directly capture results from
interfaced analytical instruments and barcode systems for
sample lifecycle management.
C)
INTELLECTUAL PROPERTY MANAGEMENT
SYSTEM (IPMS)
R&D at RIL has implemented an enterprise wide Intellectual
Property Portfolio Management application from product
leaders “Thomson Reuters” for centralisation of patent
filing which enables focused patent filing to build a strong
patent portfolio. It helps in having a centralised repository
for various stakeholders input/decision, simplifying patent
maintenance and audit of patents.
R&D EXPENDITURE
Expense
Capital
Revenue
Total
(` in crore)
FY 2016-17
FY 2015-16
593
855
1,448
631
628
1,259
INNOVATION
At Reliance, innovation is a way of life that allows the Company to create real, sustainable value for all its stakeholders. Reliance
considers innovation from an organisational point of view – not just from a product, process or R&D point of view.
Innovation at Reliance
Environment
Mission Kurukshetra
Process
Talent
RELIANCE INNOVATION COUNCIL
The Reliance Innovation Council (RIC) is a unique corporate
entity that 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 honoured
with Padma Vibhushan, the second highest civilian honour
bestowed in India.
Prof. George M. Whitesides is a Professor at Harvard University
and among 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 College de France
in Paris, who was awarded the Nobel Prize in Chemistry in 1987
for his studies on the chemical basis of ‘molecular recognition’.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
135
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 expert.
Follow Reliance Innovation on Twitter: @RILInnovation
The Reliance Innovation Leadership Centre (RIL-C) was set up
to serve the innovation vision of the Company. RIL-C and the
Company’s leadership implement Reliance’s innovation agenda
by deploying the best and next innovation practices.
ILLUSTRATION: Enabling Innovation - Mission
Kurukshetra
Mission Kurukshetra encourages Idea Champions across
Reliance to lead idea campaigns that seeks innovative ideas
from people.
Action Taken: More than 120 such campaigns have been
launched, seeking ideas from across the Company and
galvanising people around innovation.
Example – One of the water saving campaigns was
about reducing water consumption at one of the sites. In
this campaign more than 200 ideas related to reducing
consumption at the plant, process, department, technology
and building level were shared by environmentally conscious
employees, of which many are under implementation. It
resulted in water saving of 40%.
Outcome in progress: Innovation enablement culture across
Reliance.
“I must compliment the systemic approach Reliance is taking
towards innovation – it is very rare; most organisations don’t.
It’s unusual to see a group of people who are responsible for
innovation processes, health and overall climate within the
entire organisation.”
– Prof. Gary Hamel, Reliance Innovation Council member
ILLUSTRATION: Innovation in Machinery Repair
A crack was observed on the inner circle of coke drum.
Welding would require 9-10 days of shutdown.
Action Taken: Ideas were crowd sourced. Solutions that
involved no stoppage of work were received from persons that
would otherwise would not have been reached out.
Outcome in progress: Fostering crowd sourcing &
empowerment culture.
ILLUSTRATION: Enhancing Recovery in E&P
Action Taken: Common goal being to increase recovery
from D1-D3 wells in the KG Basin, multiple activities evolved
in due course including-injecting surfactant to unload water
in subsea flow lines, use of gas from another field helping
to switch to MEG free operation. This ensured sustained
production from selected D1-D3 wells.
Outcome: The self-evolving culture demonstrates impact of
innovation culture.
Please also refer page 40 for a more of Innovation at RIL.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 136
KEY INTELLECTUAL CAPITAL INPUTS
Number of patent applications filed (Hydrocarbon)
Number of patent applications filed (Jio)
Total Expenditure incurred on R&D (` in crore)
900+ researchers/ scientists/ technologist/ engineers.
8 well equipped research and development centres
Collaborations with universities in India and overseas for research and development activities.
KEY INTELLECTUAL CAPITAL OUTPUTS
Number of Patents granted (Hydrocarbon)
Number of ideas under the programme of Mission Kurukshetra
19,000 ideas were submitted to Mission Kurukshetra by employees since inception.
RIL’s breakthrough R&D initiatives:
Biofuels and Biochemicals (Algae to Oil)
Fuel Cell
Coal Bed Methane
Product stewardship.
KEY INTELLECTUAL OUTCOMES
FY 2016-17
FY 2015-16
319
54
1,448
288
-
1,259
FY 2016-17
FY 2015-16
60
5,500
75
5,900
The Reliance Innovation Council has nurtured the innovation culture within the organisation and has helped Reliance emerge
as one of the most innovative companies in the world. RIL has transitioned from a smart buyer of technology to a fast
customiser of technology and a flagship developer through largely inhouse developed technology that creates significant
value.
RIL Chairman and Management Director leads Forbes list of 'Global Game Changers' who are transforming their industries and
changing the lives of billions of people around the globe.
CONTINUOUS IMPROVEMENT OVER
5 YEARS (RIL)
46.4%
Increased R&D expenditure
189
Number of patents granted
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
137
MANUFACTURED CAPITAL
HITAL R. MESWANI
PAWAN KUMAR
KAPIL
B NARAYAN
PARAMJIT SINGH
SURINDER SAINI
DEEPAK DATTA
RAVINDER BATRA
A. SRINAGESH
MANOJ CHOUTHAI
“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. Its investment in mega projects and extremely diverse and complex supply chain ensure improved energy
efficiency and reduced operating and maintenance cost.”
Jamnagar Refinery
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 138
SMART MANUFACTURING
RIL is a forerunner in the oil and gas industry for adopting state-
of-the-art technologies and smart manufacturing processes in
its value chain. Smart manufacturing comprises of intelligent
analysis of real time data and tracking of various operating
processes. Smart manufacturing technology also aids the
Company to improve its performance in terms of integrity,
reliability and effectiveness of business operations.
With the availability of vast amount of operation data and
big data technologies, RIL initiated the development and
implementation of Industrial Internet of things (IIoT) based
solutions for realisation of “last mile” of optimisation across its
manufacturing facilities. These are targeted through continuous
and strategic improvement initiatives.
RIL leverages Smart manufacturing technology including:
1.
2.
3.
Use of robotics for high risk jobs such as catalyst loading in
inert atmosphere
Use of drones for inspection of inaccessible positions such
as flare tips
Development and implementation of smart pressure
testing using intrinsically safe wireless, Highway
Addressable Remote Transducer (HART) communication
protocol. This smart monitoring of pressure testing
eliminates exposure risk in addition to the improvement of
the operational efficiency
4.
Implementation of new technologies in Rotary/Inspection
and corrosion monitoring:
Critical equipment monitoring and early event
detection
Model-based automated real-time corrosion
monitoring system
Develop high temperature thickness probe using
the same material of high temperature Long-Range
Ultrasonic Testing (LRUT)
Usage of newly developed corrosion under insulation
monitoring tool using microwave technique
5.
Development and implementation of IIoT based advanced
predictive analytics solution to predict the future state
of manufacturing viz. equipment, process health to take
corrective/preventive actions for any future performance
deterioration
At RIL, Smart manufacturing is known as RIL Secured Connected
System (RILSCS). This is based on Real Time Insight into
operations by Learning through advanced analytics to predict
the future state established on the foundation of securely
connected sensors and systems. The principles of RIL SCS are
described in the adjacent diagram:
Principles of RIL Secured Connected System
Sensors
and
Systems
Connected
Real
Time
Secured
Insight
into
Operations
Learning
through
Advanced
Analytics
ILLUSTRATION: Monitoring Equipment Health
through SmartSignal
Rotating equipment like compressors, turbines, pumps etc. in
the manufacturing plants are getting overhauled or serviced
as per the direction of the manufacturer. But this might not be
sufficient to minimise the risk of shutting down of machinery.
Action Taken: RIL uses SmartSignal Solution to monitor
equipment health that checks for inconsistencies in the
functioning of the machinery and tries to give a notice of
any failure well in advance with details of when and how a
machine will fail and what priority should be given to this
signal. Report is generated and shared in an email format.
Outcome: Safety, reduced equipment downtime.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
RIL is also developing a partner ecosystem to successfully
implement smart manufacturing solutions. This includes the
support of infrastructure available through RIL’s Jio network
and Jio cloud. With this initiative, RIL not only optimises its own
processes, but also contributes towards the inclusion of other
small scale industries (SMEs) in the journey.
NELSON COMPLEXITY INDEX:
RIL’s Jamnagar refineries are amongst the largest and most
complex refining assets globally, with a Nelson Complexity
Index of 12.7. Superior configuration of refineries provides
following benefits to meet product specifications:
1. Ability to process difficult crudes, which are cheaper
2. Ability to produce high value added refinery product slate
3.
Ability to make superior grade refinery fuel products, such
as BS-IV and Euro-IV + grade gasoline and diesel
DEBOTTLENECKING:
RIL has implemented several initiatives focusing on
debottlenecking, capacity enhancement and yield
improvement to enhance its competitive strength.
DIGITAL TECHNOLOGY
At Reliance Industries Limited (RIL), the IT function collaborates
and partners with the business and functions in their quest
for operational reliability, safety, innovation and co-creation of
value and resilience. In the last 5 years, IT has transformed itself
from a traditional service delivery unit to a trusted partner that
systematically co-creates value with the business while driving
continuous identification and adoption of game-changing and
value-adding technologies.
The various IT processes are grouped into five high level
building blocks to cover the key activities of the function:
1. Perform IT Strategy/Planning
2. Manage Architecture & Design
3. Develop & Deliver IT Solutions
4.
Run and Operate IT Infrastructure, Networks & Applications
5. Manage IT function
Together, these processes enable the IT function at RIL to
aggressively automate and digitise processes that enable the
RIL Business and Operating Model to:
Drive Innovation and adoption of enabling technologies
Promote process, systems and data (PSD) approach
Facilitate proactive engagement and collaboration
between businesses and IT, while developing and
implementing digital solutions on a technology backbone
and platform
139
Ensure appropriate Business Risk Assessment and Controls
are in place to safeguard the highly digitised and mobile
RIL business operating model
In the short term, the IT function is driving towards establishing
an end-to-end digital chain for key processes across Human
Resources, Finance, Customer Relationship Management,
Supply Chain & Logistics, and Inventory Optimisation.
RIL has a large portfolio of more than 1,800 applications being
used across the various businesses of RIL, including world-class
implementations like Meridium APM for asset performance
management, GE SmartSignal for predictive maintenance,
Honeywell Intuition Executive for process and performance
monitoring, SAP HCM for hiring, onboarding and training, and
Tableau for dashboards and visualisation.
True to RIL’s vision to be a “Cloud First, Mobile First” organisation,
RIL employees can access transactional, analytical, and
informational capability on their mobile devices thus improving
productivity, response time, safety and operational reliability.
As cyber-security becomes a key focus area in this digital world,
RIL has implemented state-of-the-art technology solutions
to detect & prevent cyber threats by improving monitoring,
intrusion detection capabilities. Towards the end, Reliance Retail
has recently been re-certified to the Payment Card Industry
Data Security Standard (PCI DSS) and the Petrochemicals
business has also achieved ISO 27001 certification.
The scale of digital disruption is increasing exponentially, and
there are several exciting technologies that promise to change
the way of working at Reliance. The Company recognises
opportunities in artificial intelligence, machine learning,
big data analytics, the Industrial Internet of Things (IIoT),
blockchain, 3D printing, virtual reality etc. and have been hard
Use of drone
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
140
at work setting the stage to build institutional competencies in
these areas.
The IIoT is expected to save US$1 trillion globally by 2022.
RIL and General Electric (GE) have announced their intention
to form a partnership to develop, market, sell, and support
industrial applications on the GE Predix IIoT platform by
leveraging RIL’s deep process and operational experience in
the Hydrocarbons business and GE’s software and data science
expertise. In addition, RIL is exploring collaborations with
industry leaders like Honeywell, Siemens, Emerson, Schneider
Electric, and others as RIL puts in place the building blocks for
its long-term IIoT strategy and Digital Manufacturing platform.
RIL has a dedicated team of experienced data scientists who
work closely with the business teams to identify existing
problem areas and future opportunities where a data-driven
approach can be applied to achieve new solutions and
breakthroughs. RIL is exploring world-class platforms like SAP
HANA, Hadoop, Cassandra, and others for its big data initiatives.
RIL is also developing in-house expertise in programming
languages like MATLAB, R, Python etc.
Machine learning (ML) is another promising area where RIL has
built internal capabilities and competencies, and solutions are
being developed in diverse areas like Employee Reimbursement
Analysis, Fleet Risk Management, Vendor Invoice Analysis, Truck
License Plate Identification, IT Incident Management etc. For the
Petchem business, for example, the Company has applied ML
techniques to large volumes of navigation data generated by
trucks carrying RIL’s consignments to identify potential accident
spots on common routes, create risk profiles for individual
drivers as well as carriers, and improve journey time estimates.
3D printing has also been identified as a fast emerging technology
which has the potential to add tremendous value to RIL. This
IT enabled manufacturing technology will be an important
component of the RIL Digital Manufacturing architecture. RIL has
procured state-of-the-art printers for its employees to experiment
and learn about this new technology platform while developing
potential use cases for its application.
Safety is an integral part of RIL's culture, and RIL is launching
several Smart Workforce initiatives which explore the use of
sensor-equipped wearables like goggles, helmets, and suits
to ensure worker safety and improve labour efficiency and
utilisation.
RIL is striving to tap the potential of Virtual Reality (VR) through
a Virtual Walkthrough Plant Environment, which creates an
interactive 3D environment for training, testing, and process
simulation for RIL's Field Operators, Maintenance Operators and
other critical plant personnel.
At RIL the need to leverage both internal and external sources
of information to identify and create value-generating
opportunities has been recognised. RIL will shortly launch
one such ‘Connected Intelligence’ initiative for its Refining
& Marketing business, which is powered by the IBM Watson
platform and uses natural language processing (NLP)
techniques to gather market intelligence from online and
offline sources to identify movements in the international oil
markets.
The RIL IT organisation, through a combination of motivated
and engaged talent and an eco-system of technology partners,
is well positioned to enable the RIL digital journey.
ILLUSTRATION: Digitisation of Equipment
Inspection
Owing to the vast size of RIL facilities inspection of equipment
to ascertain their health becomes a time consuming and
expensive affair.
Action Taken: Prediction models were designed to understand
to help predict the corrosion rate and remaining life of materials.
The predicted corrosion rate and expected life of machinery is
made available in the dashboard.
Outcome: Prediction model supports inspection planning,
allocation of resources as a safety net towards corrosion,
inspection reminders for machinery with high corrosion rate,
mitigation of production losses, optimising asset integrity and
reliability programmes, decrease asset replacement and increase
asset life.
KEY PRODUCTS
RIL’s businesses have an international presence through
subsidiaries and associate companies, extending across North
America, Australia, Europe, East Africa, Middle East and Asia.
RIL has undertaken business activities in eight international
RIL and GE has announced a
partnership to develop IIoT
industrial applications
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 141
locations on a standalone basis and more than 50 locations
across India. In addition to serving Indian markets, RIL exported
to 108 countries worldwide in FY 2016-17.
Polymers:
1.
Successfully used geotextiles and geogrids for stabilisation
of railway tracks in different regions
RIL’s activities span across production of oil and gas, petroleum
refining and marketing, petrochemicals (polyester, fibre
intermediates, plastics and chemicals), textiles, retail and
telecommunication with the three key products being
transportation fuels, polymers and polyester fibre. The products
which incorporate social and environmental considerations
incude:
Key Products
Recron GreenGold
Dope Dyed Fibres
for Nonwovens
Eco-friendly
Conjugate Fibrefill
Rel Wood
Environmental and Social Consider-
ations
Reduction of product carbon footprint by
25%
Decreases energy and water consumption in
the downstream industries
Certified by Global Recycle Standard (GRS) to
have lowest carbon footprint
Durable, water-resistant, fire retardant, UV
and termite-resistant product used as an
alternate to wood
PRODUCT STEWARDSHIP
Reliance reviews the environmental, health and safety impacts
of its products continuously to ensure that they do not pose
any risks to people and environment. The Company ensures
uniformly high standard for product stewardship and go
beyond regulatory legal requirements. In house capabilities
were also built for noise and air dispersion modelling and Life
Cycle Assessment (LCA) studies. For upcoming projects, RIL has
accomplished identification of potential environmental risks
and assessment through detailed environmental impact and
risk identification studies. Some of the instances of product
stewardship are listed below:
PRODUCT STEWARDSHIP IN REFINING AND
MARKETING
The various initiatives undertaken at Refining and Marketing
are:
1.
2.
3.
Improved capability to produce BS VI gasoline
specifications in DTA refinery
Enhancement of unit capacity for improving propylene
recovery
Upgradation of hardware facility to process opportunity
crudes
PRODUCT STEWARDSHIP IN PETROCHEMICALS
The various initiatives undertaken at Petrochemicals are:
2.
3.
Use of mulch films for cotton cultivation which resulted in
better growth of plants and enhanced the productivity
Successful completion of research trials of Polypropylene
(PP) non-woven fruit covers on Litchi fruit which resulted in
25% increase in yield
Polyesters:
1.
Continuous efforts for development of variety of new
products such as Recron Linen, Sparkle linen used for
aesthetic linen appearance and Recron Kooltex for
moisture management used for active wears
2.
3.
Recron green gold is one of the green textile fibres, which
reduces its own carbon footprint by 28% over last two
years
Recron certified sleepless mobile pillow which supports
and comforts neck while traveling
RIL extended its co-branding for sewing threads and
strengthened Recron®SHT to new partners.
ILLUSTRATION: Facilities optimisation for ethane
pipeline project
Action: Immediate isolation of pre-existing pipelines to house
control equipment for new parallel ethane pipeline. Use of
compact low-power control equipment (e.g. electro-hydraulic
actuated valves) for the first time in cross-country pipeline.
Outcome: The compact size and low energy requirement
of control equipment reduced the size of land parcel, fire
suppression system and electrical supply system.
PRODUCT STEWARDSHIP IN OIL AND GAS
EXPLORATION AND PRODUCTION
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:
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 142
1.
2.
Injecting surfactant into subsea producing wells,
facilitating well fluid to be carried up to the surface
High pressure gas injection (at depth of 600m) at sea bed
to assist well fluids flowing to surface
provides a ‘connected store’ experience to customers even in
remote locations where Digital store may not be present. It also
improves store productivity through better cross sell and upsell
opportunities.
A number of these innovative approaches have been adopted
for the first time at a water depth of 1100m by using remotely
operated vehicles through a dedicated world-class multi-
support vessel. It is worthwhile to mention that Reliance has
also extended these expertise to the Indian Coast Guard in
locating debris of an ill-fated Dornier aircraft which crashed into
the sea.
PRODUCT STEWARDSHIP IN RETAIL
Reliance Retail, through Reliance Digital Mini stores, has been
successful in bridging the physical space gap. Reliance Digital
Express Mini through its omni-channel approach has built
capabilities to offer Reliance Digital’s entire product assortment
through an assisted sales model where customers can browse
an expanded assortment of products, read product details,
compare options, and make purchase decisions. The capability
PRODUCT STEWARDSHIP IN JIO
Jio provides state-of-the-art digital services network for
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. It is the only network conceived as a Mobile Video
Network from the ground up and supporting Voice over LTE
(VoLTE) technology. It is future ready and can be upgraded as
technologies advance to 5G and beyond.
Hazira Manufacturing Divison
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 143
FY 2016-17
FY 2015-16
7,06,802
5,98,997
KEY MANUFACTURED CAPITAL INPUTS
Total Asset Value (` in crore)
World’s Largest Green-field Refinery & Petrochemical Complex.
Setting up of a new Refinery Off Gas Cracker.
Post Jamnagar expansion project, JMD will be among top decile of refiners globally.
Leveraging smart manufacturing technology.
Evolution of technology including transition to 5G, 6G and beyond.
During the year, total 65 grades of crude processed.
Jamnagar refinery's captive Sikka port is India's largest port by volume.
Jamnagar has advantageous logistics.
Jamnagar has one of the world's largest Alkylation capacity.
Reliance Retail operated 3,616 stores across 702 cities with an area of over 13.5 million square feet.
Reliance Retail operated 448 fuel outlets as on 31st March, 2017.
RJIL’s total spectrum footprint stands at 1,108 MHz (uplink + downlink) across three spectrum bands namely 800 MHz, 1800 MHz and
2300 MHz.
KEY MANUFACTURED CAPITAL OUTPUTS
Petrochemical Production (MMT)
Gross Refining Margin (US$/bbl)
KEY MANUFACTURED CAPITAL OUTCOMES
Creation of world-class resilient infrastructure that can cater:
1.5% of world transport fuel
Average consumption on Jio is 10GB/month/user (Highest in world)
FY 2016-17
FY 2015-16
24.9
11.0
24.7
10.8
RIL has diversified its businesses by creating world-class infrastructure facilities to generate greater value for its stakeholders.
Setting up of Refinery Off gas cracker, Petcoke gasification plant, improving long-term supply security of ethane to the existing
crackers were some of the key ongoing projects in FY 2016-17. Through these initiatives, the Company has achieved energy
reduction and cost optimisation solutions. Also RIL has targeted expansions in capacities of PFY, PTY, and PET production along
with wall paper segment. RIL is expanding its technical textile portfolio by setting up new industrial yarn plant. RIL has established
strong supplier relationships through sustained investments and effective communication. RIL has leveraged smart manufacturing
technologies in its operations by enabling use of robotics and drones for high risk operational areas.
CONTINUOUS IMPROVEMENT OVER
5 YEARS
27.9%
Gross Refining Margin Increased
139.5%
Total Assets Increased
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
144
FINANCIAL CAPITAL
Reliance is dedicated towards accomplishment of partnering India’s economic growth and social development. Reliance is always
focused on improving shareholder returns by maintaining an optimal capital structure. The Company has significantly enhanced its
operational performance by establishing prudent risk management framework.
During the year, Reliance added value of `1,01,957 crore including payment to the national exchequer aggregating to `51,399
crore. This contribution is used for developmental activities which help in building of a prosperous society. Additionally, large
procurements made by Reliance for its regular business as well as for ongoing capex projects have a huge cascading impact –
creating jobs and business opportunities for entire socio-economic spectrum. Please refer to (a) Financial review Page Nos. 62 &
63(b) Liquidity and Business Page Nos. 108 to 110 for better insights into financial capital.
KEY FINANCIAL CAPITAL INPUTS
Capital Expenditure
KEY FINANCIAL CAPITAL OUTPUTS
Revenue
EBITDA
Paid up Capital
Total Profit after taxes
KEY FINANCIAL CAPITAL OUTCOMES
Market capitalisation
(` in crore)
FY 2016-17
FY 2015-16
1,14,742
1,12,995
FY 2016-17
FY 2015-16
3,30,180
2,93,298
55,529
2,959
29,901
49,419
2,948
25,171
4,28,909
3,38,703
31.5% CAGR of Market capitalisation, since IPO.
Successfully retaining credit rating two notches above than India’s sovereign rating throughout the biggest ever Capex program.
CONTINUOUS IMPROVEMENT OVER
PREVIOUS YEAR
13.9%
Increased Networth
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
145
SOCIAL AND RELATIONSHIP CAPITAL
P.M.S. PRASAD
JAGANNATHA
KUMAR
“RIL’s ambition is to create more and more opportunities for the wider society to ensure sustainable and inclusive growth.
The Company aims to take all its stakeholders into the fold while embarking on its growth agenda. While direct interventions
are designed to benefit the local communities in a structured way, the Company also ensures that the voices of its other
stakeholders such as customers and suppliers are factored in RIL’s decision making process. RIL collaborates with stakeholders
across the value chain to create better opportunities for growth. The Company will continue to work with every strata of the
economy to benefit the society, industry and ultimately, the nation.”
Village Development plan
VALUE ADDED STATEMENT (STANDALONE)
Particulars
Contribution to National Exchequer
Reinvested in the Group to maintain and develop operations
Providers of Debt
Employee Benefits
Providers of Equity Capital
Contribution to Society
Total Value Created
*Dividend recommended for FY 2016-17 is `3,916 crore, including `661 crore as dividend distribution tax.
(` in crore)
FY 2016-17
51,399
36,635
5,575
4,434
3,255*
659
1,01,957
STAKEHOLDER ENGAGEMENT
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 establishes strategic dialogues.
For more details on identification of stakeholders, frequency of
engagement and key priorities of stakeholders, refer to the RIL
Sustainability Report FY 2015-16 at www.ril.com.
RIL’s Code of Conduct has a provision for all its stakeholders to
freely share their concerns and grievances with the Company
through a structured mechanism.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 146
RESPONSIBILITY TOWARDS SUPPLIERS
Reliance ensures that sustainability is embedded in its
supply chain by engaging with supply chain partners on
the sustainable growth path. The commitment towards
environmental protection is extended to all its stakeholders
including the suppliers by making continuous efforts to
ensure that its supply chain partners adhere to and comply
with the principles of compliance with laws and regulations,
human rights, health and safety, environment protection and
conservation, protection of confidentiality and intellectual
property and business integrity.
Reliance conducts a rigorous screening process for registration,
evaluation and performance management. The Company
engages regularly with its supplier base in a structured
feedback survey on all aspects viz. query, complaint redressal
and HSE and Security.
RIL’s sustainable sourcing procedures focus on world
class supplier base, contractor care, responsible care, and
development of India’s engineering talent, innovation through
supplier collaboration, green packaging and managing human
rights across the supply chain. RIL has procured goods and
services (non-crude/non-feedstock) worth over `14,341 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.
SUSTAINABLE SOURCING
Sustainable sourcing at RIL aids social progress, economic
development and reduces environmental impacts. RIL’s
sustainable sourcing initiatives contribute to five strategic focus
areas such as Energy Management, Environment Responsibility,
Product Stewardship, Occupational Health 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. For improving human health impacts
and the protection of 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 to statutory laws and regulations,
and labour laws by its contractors.
RIL’s determination to reinforce local manufacturing, will help
to bridge the gap between robust domestic consumption and
constrained supply, thereby leading India to become self-
sufficient.
VALUE FOR CUSTOMERS
Reliance endeavors to understand customer needs. The
Company’s continuous effort to develop variety of products
to meet the myriad of consumer needs positions Reliance as
a reliable supplier. With customer centricity as a core value,
Reliance Petrochemicals has started a journey of ‘Chemistry for
Smiles’. The program endeavours to upgrade the supply chain
to create a fully integrated, digitally enabled and best in class
platform to deliver unmatched service levels and customer
experience.
To understand the customer concerns and identify mitigation
measures, RIL organised customer audits, customer surveys and
call centres, direct feedback sessions from visiting managers/
plant personnel and factory visits for customers. In addition
to this, the Company has a separate framework to deal with
customer complaints. RIL conducts third-party mystery
customer audits, customer satisfaction surveys and call centre
evaluation studies. This has helped the Company to ensure
periodic fulfilment of service delivery promise, conformance
to internal norms and standards, identification of process
improvement areas and understanding customer attitude and
behaviour change to ascertain that needs are met at all stages.
In addition to compliance of product information and product
labelling, RIL follows the Globally Harmonised System for
classification of chemicals and preparation of Material Safety
Data Sheets. RIL shares information with its customers on safe
handling and use of products at the time of distribution.
Reliance Petro Retail secured 2nd rank on Customer Satisfaction
(CSAT)Score in comparison with scores across key customer
segments namely Fleet, Owner Driver & Passengers. RIL
has taken necessary interventions like improving outlet
infrastructure, training of DSMs, streamlining of processes,
structures and other new initiatives related to fleet customers
over the last 6-9 months. These initiatives will help RIL
outperformed the competition and support to set new
standards on customer satisfaction.
GENNEXT HUB : A UNIQUE STARTUP
ECOSYSTEM
GenNext Hub, a Reliance Industries Limited (RIL) sponsored
“Startup Scalerator Program”, has completed four editions
of the program with 51 startups graduating from the Hub
so far. Launched in 2014, GenNext Hub catalyses the startup
ecosystem for a digital India. A Scalerator is an immersive
process that helps startups scale up from a ‘minimum viable
product’ to a ‘minimum viable company’ by providing them with
hands-on mentoring and other critical resources that they need.
During the four-month-long program, GenNext Hub organises
workshops and mentoring sessions for these startups in the
areas of customer development, business model, operations,
product development, product roadmap, media coverage,
pitching and fund raising. It also provides expertise in IP, legal,
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 147
Things (IoT) consumer solutions. Some key verticals include
retail, enterprise solutions, telecom, media & entertainment,
education, healthcare, fin-tech, smart city, smart manufacturing,
logistics, security, etc.
INVESTORS
GenNext Hub brings the best-curated startups and investors
together through its Investor Access Program across the
country aiding the growth of startups through easier access
to capital. Already, GenNext Hub receives more than 50% of
its applications from cities other than the major startup hubs
like Mumbai, Delhi and Bangalore. Going forward, it will also
strengthen its presence in other clusters of excellence to ensure
that these startups get access to the critical resources that they
need to grow their business.
GENNEXT HUB NURTURING TALENT,
TECHNOLOGY AND TRUST
TALENT
GenNext Hub looks for passionate and technically gifted startup
founders and nurture their talent to become pioneers in their
respective fields. This is done through one-on-one mentoring
sessions with high-profile mentors from the Reliance family and
external mentor pool. Some of the alumni have gone on and
received awards recognising their talents. Dhruvil Sanghvi (CEO,
LogiNext) was listed among Forbes India 30 under 30 while
Anurag Garg (CEO, Dattus) was listed among Forbes USA 30
under 30.
TECHNOLOGY & INNOVATION
GenNext Hub identifies startups which have an innovative
product offering that gives them a natural advantage in the
market. GenNext Hub backs entrepreneurs with deep technical
know-how and capability, and helps them with business
mentoring to ensure they build sustainable businesses. For
example, from its cohort, DATTUS won 2016 MIRA award for the
best new tech product (USA) while RecipeBook was featured
in Google I/O 2016’s most innovative products. Headspin was
featured as one of the 38 enterprise startups that will boom in
2017 by Business Insider. LogiNext continues to be a leader in
the logistics space and bagged the prestigious 'Innovation in
Data Science' at Aegis Graham Bell Awards. 9 out of 51 GenNext
Hub startups won the Hot 100 Awards for technology in 2017.
TRUST
Finally, GenNext Hub is fostering a trust-based ecosystem
to ensure a mutually win-win situation for all. As a startup
platform, GenNext Hub is able to facilitate discussions and
negotiations, and ensure that the right expectations are set
between different stakeholders to ensure that start-ups are set
up for success.
For more information, please visit www.gennexthub.com.
financial compliance, HR and other expertise. Startups also
explore Proof of Concepts (PoC)s with RIL during the 4-month
program.
CATALYSING THE INDIAN STARTUP
ECOSYSTEM
CAPACITY BUILDING
The startup community in India will play a big role in achieving
the “Digital India” objective. At GenNext Hub, the Company
is catalysing this startup community by bringing together
emerging entrepreneurs, business leaders, corporations,
industry associations, academic institutes, media, and
technology enablers. In this short period of time, GenNext Hub
has engaged leaders from organisations such as Microsoft,
NASSCOM, TiE, Amazon, Google, ICICI Bank, NVIDIA, India
Angel Network, Nexus Venture Partners, CIO Angel Network,
YourStory, Silicon Valley based Spinta Global Accelerator, Nishith
Desai Associates, to support the startup growth. GenNext Hub
also works closely with IITs, NITs and IIMs to identify high-
potential entrepreneurs.
STARTUPS
In addition to the existing “Scalerator” program that involves
technical and business mentoring, GenNext Hub will continue
to catalyse the larger Indian startup ecosystem by providing
a platform for VC-funded startups to explore synergistic
opportunities with RIL business units.
Startups with a big vision need to build innovative world-class
products. Through GenNext Hub, startups receive access to
global technology leaders such as Microsoft, Amazon, Google,
NVIDIA among others who provide access to infrastructure and
product managers for hands-on technical mentoring to startups
from GenNext Hub. GenNext Hub is a magnet that is attracting
digital startups from India who are building disruptive
businesses using artificial intelligence (A.I.), machine learning,
analytics, mobility, payments, marketing and automation, smart
home and home automation, robotics, drones and Internet of
GenNext Hub RELAY - Panel Discussion
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 148
ILLUSTRATION: 'Driverless GST' and GST for Millions
Situation: Indian financial system is undergoing its biggest
ever tax reforms – GST. While Reliance rises up to this
challenge, it also wants to enable millions of fellow citizen to
rise up to the same challenge.
Action: Launched a unique platform – www.jiogst.com which
provides high-quality knowledge content to users free of cost.
This includes an Education Guide, FAQs, Expert Videos and
Webinars on topical subjects of interest, News Updates, and
the impact of GST on key sectors of the economy. A unique
feature is the facility of: ‘Ask our Experts’ wherein any one can
raise a GST query and is assured of a quality response from our
experts within one working day. Reliance has also obtained
an authorisation from GST Network to act as a GST Suvidha
Provider (GSP) and will provide end-to-end services for GST-
compliances to community at large. The system envisages
facility of online compliances and payment of taxes in a
user-friendly manner. It is also being envisaged to provide the
facility of preparation of digitised invoices for those who are
unable to provide such invoices to their buyers.
Outcome on progress 1: Ability to form its compliances
in a fully automated environment and has christened this
project: “Driverless GST”. The Project will help automated
determination of tax liability relying on algorithm based
eligibility to tax credits, on the back of fully digitised input and
output invoices.
Outcome in Progress 2: Facilitator in GST-compliance for
its vendors and customers and also community at large,
particularly small retailers and service providers.
PARTNERSHIPS FOR CHANGE
RIL has its representation in several business and industrial
associations such as The World Economic Forum, The American
Chemistry Council (ACC), Indian Chemical Council (ICC), The
Chemicals and Petroleum Manufacturers, Association (CPMA),
Gulf Petrochemicals & Chemicals Association (GPCA), World
Business Council for Sustainable Development (WBCSD),
European Petrochemicals Association (EPCA), American Fuel
& Petrochemical Manufacturers (AFPM), Association of Oil and
Gas Operators in India (AOGO), Federation of Indian Chambers
of Commerce and Industry (FICCI), Confederation of Indian
Industry (CII), Associated Chambers of Commerce and Industry
of India (ASSOCHAM) and Association of Synthetic Fibre
Industry (ASFI), Synthetic and Rayon Export Promotion Council
(SRTEPC), The Synthetic and Art Silk Mill’s Research Association
(SASMIRA).
As a responsible producer of petrochemicals, RIL has
collaborated with Indian Centre for Plastic in the Environment
(ICPE) on a voluntary basis. RIL provides technical and financial
support helping in the development of newer technologies and
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.
HYDROCARBON
RIL and British Petroleum 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 operational expertise.
RIL also has three joint ventures in North American shale plays
with Pioneer Natural Resources, Chevron and Carrizo.
RETAIL
Reliance Retail has emerged as the partner of choice for
International brands and has established exclusive partnerships
with many revered international brands.
Reliance Retail has a portfolio of over 40 international brands
that spans across the entire spectrum of luxury, bridge to luxury,
high–premium and high–street lifestyle. Reliance Retail operates
more than 370 stores for international brands and continues to
partner with new and revered international brands.
JIO
Jio has entered into master service agreements with leading
telecom infrastructure companies to have access to the
passive infrastructure set-up by these companies. It also
has agreements with RCOM for the purpose of sharing fiber
and economising on overall use of fiber and other passive
infrastructure. Jio, along with business partners, has focused on
making all the components of the digital value chain available
to customers.
INCLUSIVE GROWTH FOR SOCIETY
As part of its long-term business strategy, the Company aims
to contribute and deliver on the globally and nationally agreed
upon development targets namely United Nation’s Sustainable
Reliance Foundation
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 149
Development Goals. Also, the Company’s CSR initiatives are
in concordance with the Company’s Act, 2013 of Government
of India. The Company has set up Reliance Foundation for
implementing its CSR initiatives with a systematic approach
for scale, impact and sustainability of its programmes. With
these approaches, the CSR initiatives of Reliance have touched
the lives of more than 12 million people across India. 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.
For specific details refer to the Report on Corporate Social
Responsibility Report Page No. 164 and Annexure II to the
Board’s report.
IMPACT OF JIO ON SOCIETY – LIKE NEVER BEFORE
Connecting the dots (Jio Together)
Jio Connected intelligence
Inspire, Empower, Enable
Speed like never before
1.
Next Gen Network
2.
Connecting India to the world
3.
Always on the network
4.
Any time. Any where
5.
Complete digital value chain
6.
Commitment to develop together
7.
Connecting India
8.
9.
Strengthens integration
10. Bridging the rural urban gap
11.
SIM activation within minutes
Intelligent and intuitive
Start from where you left
Internet of things
44.
45. Application interconnect
46.
47.
48. Orality to Visuality
49. Real time
50. Human and machine true collaboration
51. Virtual Reality
52.
53.
54.
55.
56.
Smart Home
Smart Car
Smart Cities
Single Log on
Intelligent device
73. Platform for Entrepreneurs
74. Platform for Students
75. Platform for Business
76. Platform for Doctors
77. Digital Empowerment
78. Xpress News – Keeps you ahead
79. Knowledge democracy
Information symmetry
80.
81.
Live your dreams
82. Unleash your true potential
Expand your horizon
83.
Impetus to new age learning
84.
Jio Digital Life
Jio Beautiful Life
Revolutionising Entertainment
Learn, Create and Share
Listen, Play and See
12. One stop Digital shop
13. Data is the new oil of India
14. Video is New voice
15.
16.
17. High Definition Living
18. Data super highway
19. Cloud Storage through drive
20. Wi-Fi on the move
21.
22. Downloading the world
23. Uploading the new India
24. World at your finger tips
25. Novel way of living
26.
27. Holistic Digital life
28.
29.
30.
Live Stream: Zero buffering
Experience closeness
See life through Digital Lens
Enabling document sharing through chat
End to end digital solutions
57. Connect & Explore
Live your passions
58.
59.
Learn, Experience, Enjoy and Enrich
60. Beyond Bits and Bytes
61. Wide Spectrum of opportunities
62.
Innovating for the Future
63. Meaning creator
64. Pattern recogniser
65. Reimaging concepts
66. Redefining lives
67. Bridging the digital divide
68.
69.
End of digital poverty, Real poverty
Spreading joy and happiness
85. Music, Media and Movies
86. On Demand Theatre
87. Relive memories
88. Unparalleled Gaming
89. Beat the blues, curated playlist
90. HD televised experience on the go
91.
Experiential Magazine
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 150
Simple, smart and Secure
Transformation
From Scarcity to Abundance
70.
71.
72.
Transforming communication
Transformative products
Transformation for humanity
92. Abundance of choices
93. Abundance of content
94. Abundance of resources
Economic for all
Flexible & tailor made
Futuristic processes
31. Available to all
32.
33. Cost effective palette of services
34.
35.
36. Multimedia Broadcast, Multicast Service
37. Clutter free
38. Capture, share and store
39.
Trustworthy companion
40. Data safety
41.
Transparent
42. Unambiguous
43.
Easy to use
Society
Financial inclusion
95. World’s largest startup
96. Redefining internet outreach
97.
Life enhancing Apps
98.
Social Connect
Enhanced Health
99.
100. Freedom of activities
101. Promoting united achievement
102. Supplementing E-Governance
103. Laying foundation for the future
104. Bank, Shop and Pay on the go
105. Cash less purchase and pay
106. Paper to digital currency
107. Hassle-free and secured payments
108. Mobile money
KEY SOCIAL AND RELATIONSHIP CAPITAL INPUTS
Taxes paid to the Government
Spent on Indigenous Suppliers
CSR expenditure
FY 2016-17
51,399
14,341
674
(` in crore)
FY 2015-16
43,117
15,615
659
Reliance Foundation outreach spread across India for various social responsibility initiatives.
Partnerships for change with various organisations.
Jio’s collaboration with Samsung is recognised for innovations that are pioneering digital transformation in India.
Strategic partnership of Jio with telecom infrastructure companies.
KEY SOCIAL AND RELATIONSHIP CAPITAL OUTPUTS
Total number of startups
Key partnerships for a sustained growth.
FY 2016-17
FY 2015-16
29
22
KEY SOCIAL AND RELATIONSHIP CAPITAL OUTCOMES
RIL, through its social development projects under the seven focus areas, has enabled the promotion of equitable economic
growth and ensured a more sustainable, inclusive and people-centric development. RIL's keen interest in adding value to all key
stakeholders has resulted in overall economic growth of the surrounding areas boosting the employment prospects of local
villagers resulting in enhanced social equity. Consistent and effective stakeholder engagement has enabled RIL to build trust and
deepen the partnerships. GenNext Hub, a uniquely positioned global programme, helped start-ups think big and grow fast.
CONTINUOUS IMPROVEMENT OVER 5 YEARS
51
Number of startups graduated since inception
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
151
RELIANCE’S SUSTAINABILITY REPORTING JOURNEY
RIL publishes its Sustainability Report annually since FY 2004-05, based on Global Reporting Initiative’s (GRI) latest reporting
guidelines. The Company has been publishing the sustainability report according to GRI G4 guidelines (including Oil and Gas sector
disclosures) ‘In accordance – Comprehensive’ option since FY 2014-15. The Sustainability Reports published till date are available at
http://www.ril.com/Sustainability/CorporateSustainability.aspx
Goals for Sustainable Development
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
metrics across all operations.
Ensure implementation of best
in class technologies for real
time monitoring of operational
parameters for safe, reliable and
efficient operations.
Key Reflections
Use of drones.
*Monitoring equipment health
by SmartSignal (Corrosion rate &
equipment life).
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.
Key Reflections
*Collaboration with cement
industries to utilise waste as fuel.
ROGC Project
Asset Utilisation
Efficient and maximised utilisation
of the assets to optimise energy
consumption through operational
excellence ensuring safe and
reliable operations.
Key Reflections
*Bottom of the barrel approach
ensuring refinery efficiency.
1,108 MHz of spectrum across
three bands namely 800 MHz,
1800 MHz and 2300 MHz band
across 22 circles.
* Outcome during the year
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.
Key Reflections
*Employing people from 21
nationalities
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.
*Best-in-class policies for
Key Reflections
women employees
*60,000 tonnes of PET bottles
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.
Key Reflections
* VLECs shipping ethane from
the USA with lowest carbon
footprint globally.
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.
Key Reflections
From Textile to integrated
hydrocarbon business to
consumer facing businesses.
Gamechanger for (a) *Free calls
(b) Cotton to polyster(much
stronger product with much
lower price)
Customer Satisfaction
Aspire to be the most customer
focused company with the highest
customer loyalty.
Key Reflections
*More than 30 million members
registered to Customer Loyalty
Programme of Reliance Retail.
*World’s largest migration from
free to paid services: 72 million+
in a month for Jio.
recycled in a year.
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.
Key Reflections
Transformed lives of 12 million
people.
50 lakh+ employment
generation.
` 51,399 crore Contribution to
National Exchequer.
CSR expenditure: ` 674 crore
Waste Management
Ensure efficient use of solid
catalysts including investment in
development of bio-catalysts to
replace solid catalysts.
Key Reflections
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.
Key Reflections
*Round the clock emergency
medical services to all
employees & family members
across country through REFERS
initiative.
*Employee health index
mapped through web based
Health Management System.
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.
Developed advanced ionic liquid
Key Reflections
catalysts.
*45.52% water recycled in
FY 2016-17
*Total water recycled and
desalination of water at
Jamnagar Supersite
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 152
GRI Standards has been launched as a replacement of GRI G4
guidelines in October 2016. The GRI Standards are the first
global standards for sustainability reporting. These standards
will become mandatory for reporting effective on or after
1st July, 2018. Reliance was the pioneer in the Oil & Gas sector in
publishing its first GRI G4 based sustainability report in
FY 2014-15. Similarly, Reliance shall also be the pioneer in
adoption of GRI Standards from FY 2016-17 in its sustainability
reporting journey. Mapping of various sustainability topics in
alignment with GRI standards identified as material to RIL has
been provided as an Annexure to this report on Page Nos. 192-193
The reports were externally assured indicating highest level
of comprehensive disclosures for GRI G4 reports. 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 a
leading example on aspect of reliability.
MATERIALITY ASSESSMENT
RIL has undertaken a detailed materiality exercise to identify topics that matter most to its business operations and stakeholders.
RIL’s materiality assessment involves the process of identifying and assessing numerous potential economic, environmental
and social topics that could affect its business and stakeholders and prioritise them into key material topics. RIL identifies its
sustainability priorities through a structured process of materiality analysis. The materiality analysis process takes care of key
concerns and priorities of all the relevant stakeholder groups. The process involves stakeholder engagement, peer benchmarking
and alignment to risk framework and strategic priorities.
The identification of material issues has been largely aligned to risk management framework and its strategic approach based
on the four areas: Strategic and Commercial risks, Safety and Operations, Compliance and Control and Financial risks. For more
information on Materiality refer to the Sustainability Report FY 2015-16 page no. 46.
Natural
Human
Intellectual
Energy Efficiency of Operations,
Carbon Abatement and Offsetting
Managing Environmental Impact
Talent Attraction and Retention
Health and Safety
Asset Utilisation and
Reliable Operations
Ethics, Integrity and Compliance
Community Development
Customer Satisfaction
Economic Performance
Raw Material Security
Supply Chain Management
Security and Asset Protection
Social & Relationship
Financial
Manufactured
The Report acknowledges Reliance’s responsibility for and being transparent about the impacts of its policies, decisions, actions,
products and associated performance on relevant stakeholders. The Company uses the disclosures in the Report for establishing,
evaluating and communicating its accountability by aligning to the principles of Inclusivity, Materiality and Responsiveness in
accordance with Account Ability’s AA1000APS (2008) standard.
Reliance aims to build strong and long lasting relations with its stakeholders through structured dialogues. The Company values
the inputs received from the engagement process and works diligently to identify its sustainability priorities. For more details on
identification of stakeholders, frequency of engagement and key priorities of stakeholders, refer to the RIL’s Sustainability Report FY
2015-16 at www.ril.com.
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 THE INTEGRATED APPROACH
RISK AND GOVERNANCE
153
NIKHIL R. MESWANI
HARISH SHAH
LAXMIDAS V.
MERCHANT
“A disciplined approach to risk is important in a diversified organisation like Reliance to enable the achievement of its
strategic objectives and to ensure that Reliance has an acceptable level of risk commensurate to expected returns.
Reliance’s Enterprise Risk Management framework drives a consistent and systematic approach for identifying and managing
risk, both at the strategic and operational level. Reliance's integrated risk management framework provides the capability for
timely and informed response to address risks and to capture opportunities”.
“Reliance has a comprehensive Reliance Management System, a holistic set of management systems, organisational
structures, processes, policies and governance framework. During the year, significant progress has been made with driving
a risk aware culture through integrating the risk process into planning and decision making processes, assigning clear
accountabilities for risk ownership and ongoing oversight by designated Committees. Furthermore, Reliance is strengthening
its continuous controls monitoring capability across the three lines of defense, enabled by analytics technology, covering all
key risk areas.”
Jamnagar SEZ control room
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 154
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 in the society 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 Reliance's
view on risk and the key risk factors for Reliance as well
as how it manages risk through its risk management
framework.
2. RELIANCE’S VIEW ON RISK
2.1 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
offerings and its infrastructure are key.
Safety and Operations: Reliance is committed to
conduct all its activities in a manner appropriate
to avoid harm to employees and the community.
Reliance strives 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.
Financial: Reliance manages financial risk to
maintain a prudent financing strategy, even when
undertaking major investments and therefore
taking controlled risks in this area.
of risk Reliance is willing to take including the specific
tolerances, limits and other boundaries within which
decisions shall be taken or activities shall be carried
out. These policies are then enforced through controls
integrated in it's business processes and its governance
architecture.
2.2 Risk Factors
Reliance emphasises risks that threaten the
achievement of the Group’s business objectives
over the short to medium-term. As part of its annual
planning process, Reliance reviews plan related risks,
opportunities and uncertainties. It identifies those as
having a high priority for particular oversight by the
Board and its various committees and by Executive
Committees. An overview of these risks is provided
hereafter, including the actions taken to mitigate these
risks and any related opportunities:
I.
Strategic and commercial risks
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.
Changes since last year: There have been no
significant changes in the nature of the risk
exposures over the last 12 months.
In Reliance, risk appetite is formally articulated through
specific policies related to common risks, business
decisions or activities. For example, policies such as
financing and deal limits, vendor selection criteria, HSE,
customer credit and new country entry describe the level
B. Major Project Execution Risk
Reliance’s future growth plans depend upon
successful delivery of major capital projects to
deliver its long-term strategic objectives
related to:
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
1.
2.
3.
Reducing energy costs and boost profit
margins;
Gasification of Petroleum Coke which will
utilise low value refinery streams;
Utilising refinery off-gases to produce
polymers and polyesters and
4. Expanding into speciality elastomers.
The construction phase for most units in
Jamnagar are nearing completion and are
under various phases of pre-commissioning and
commissioning. The non-Jamnagar projects are
also in the process of getting commissioned in
the coming months. Managing the risks related
to the delivery of these and other major capital
projects is key to enhancing Reliance’s long-term
shareholder value.
Mitigation: Project risk management is
embedded in the way Reliance delivers projects.
All Project teams are comprised of experienced
project management professionals. Risk
Management is diligently carried out within
Projects. During the project phase various
risks have been identified and they have been
mitigated through periodic risk assessments,
proactive planning and monitoring and
meticulous execution of planned activities.
Currently the residual risks are mostly related to
commissioning and safety related risks due to
simultaneous working of several agencies. These
risks are getting mitigated by conducting ongoing
trials on machinery and systems prior to start of
Operations and by having a coordinated safety
management programme amongst the various
agencies.
Changes since last year: In Manufacturing,
major Jamnagar expansion and other projects
are drawing to a close in the coming months. As
a result the risks are shifting from construction
risks to exposures related to commissioning and
start-up which are being handled through testing,
trial runs and conducting comprehensive training
of the staff.
Major project execution risks related to building
the 4G infrastructure in Jio have diminished
significantly since the successful launch of the 4G
LTE TDD high speed wireless internet and mobile
communication services.
155
C. Customer Experience and Retention:
Reliance Jio now has more than 100 million
customers following an innovative customer
acquisition strategy. Jio is committed to deliver
on a differentiated customer experience and
its constant endeavor is to proactively mitigate
any such risks that may weaken Jio’s value
propositions, brand and customer loyalty.
To deliver this, along with expansion of its
current customer base; customer experience and
retention are of utmost importance for Jio to
generate sustainable business performance and
return on its investments.
Mitigations: To successfully capitalise on Pan-
India rollout of an all IP LTE network to deliver
next generation digital services and for ensuring
sustained customer value proposition, Jio’s
strategic and risk framework encapsulates the
following mitigations/plans:
1.
2.
3.
4.
Leverage Jio’s Pan-India network foot print
and digital ecosystem to expand Jio’s product
offerings to diversify revenue sources and
customer base.
Ongoing investments in spectrum and
network infrastructure for over 95%
population coverage and superior customer
experience delivery.
Jio Prime Membership Programme for
founder members: A loyalty programme that
assures not only most competitive monthly
tariff plans in the industry, but also many
other attractive deals and offers from Jio and
its partners to ensure retention and loyalty.
To ensure that Jio’s existing and prospective
customers do not ever suffer from ‘data
anxiety’ and remain assured of the best value
for the price paid in a hyper competitive
market, Jio is introducing ‘Everyday More
Value Offer’. In this offer customers are
assured of 20% more data at similar or
better pricing than what the leading Indian
operators provide.
Changes since last year: Jio has commenced
services from September, 2016 and is
progressively expanding its network for full
population coverage.
II. Safety and operational risks
A.
Health, Safety and Environmental (HSE) Risks in
Operations
Reliance is exposed to a wide spectrum of HSE
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
156
risks, given the diversity and complexity of
the industries, it operates in. The exploration
and production of oil and gas 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.
Mitigation: The Reliance HSE policy requires
that ‘Safety of persons overrides all production
targets’. This ensures that all employees strive for
excellence in their own personal safety and the
safety of others including employees, contractors,
customers and the communities within which
Reliance operates. 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 assessments and reviews to
get assurance on the operation of the HSE
management framework protocols and regulatory
compliances.
Changes since last year: All manufacturing sites
have made significant progress with re-baselining
their risk assessments. For the highest risks,
action plans have been defined and endorsed
by Executive Management involving capital
investments as well as enhancing administrative
and operational controls.
Reliance have also made good progress on the
implementation of its Integrated Operating
Management System (OMS). This included the
implementation of more than 20 priority elements
that relate to Process, Safety and Reliability.
Conformance to these requirements will be
verified by a Site-independent auditor during
the next 6 months. These initiatives contribute to
Operational and HSE Excellence.
B.
Marine Safety and Environmental Risks
Reliance is exposed to a complex and diverse
range of marine risk including: exploration
vessels, oil tankers, chemical tankers, gas tankers,
dry cargo vessels, operating ethane vessels,
operating chemical tankers, operating a large
fleet of tugs and port service vessels as well as
owning and operating a significant amount of
port and terminal infrastructure. With 96% of all
crude being supplied to Reliance by vessel and
the overwhelming majority of refined products
being exported by vessel it is essential that
these activities are actively managed to avoid
HSE incidents, oil spills or disruption to business
activities and processes.
Mitigation: Reliance’s augmented ship vetting
programme will ensure that all vessels used
to carry Reliance cargoes or those that call
at a Reliance facility undergo an enhanced
risk assessment screening using state-of-the-
art predictive risk software, as used by oil
super majors globally, to minimise the risk of
substandard vessels entering the marine value
chain.
Reliance has further increased its marine
contractor auditing programme to ensure
that terminal facilities, long-term charter
vessels, the owners of long term vessel charter
and contractors used in ship-to-ship transfer
management are reviewed for compliance against
Reliance and industry requirements. Additionally
through having a marine technical authority
at Reliance marine risk understanding and
management is further improved.
The newly introduced ethane vessels are being
managed by world class specialist managers who
in turn are being monitored by a dedicated team
within Reliance to ensure safe, compliant and
successful operations.
Changes since last year: As Reliance is
introducing six very large ethane carriers
into service, a world first, the requirement
for enhanced marine risk management
understanding and appropriate controls
has grown.
C. 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 the required level within an agreed
timeframe would prolong the impact of any
disruption and could severely affect Reliance’s
business and operations.
Mitigation: Reliance maintains a proactive
posture by continuously monitoring and assessing
emerging threats, vulnerabilities and risks to
manage its physical security. The group security
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
157
1.
2.
3.
A Continuous Improvement Program (CIP) for
cyber security was instituted across Reliance,
to keep pace with ever increasing threats.
Reliance regularly conducts Cyber Security
Awareness programs across the Group and
run many and ongoing user awareness
connect activities to make sure that each and
every user is aware of the basic cyber security
hygiene and their responsibilities.
Several businesses of Reliance are now
benchmarked against ISO 27001, the global
standard for ISMS ( Information Security
Management System).
III. Compliance and Control Risks
A.
Regulatory Compliance Risks
The evolution of the global regulatory
environment has resulted into increased
regulatory scrutiny that has raised the bar with
regards to regulatory compliance. This signifies
the alignment between corporate performance
objectives, while ensuring compliance with
regulatory requirements.
Mitigation: Reliance recognises that meeting
all applicable regulatory requirements can be
challenging. A comprehensive and digitally
enabled compliance management framework has
been deployed which is designed to:
Understand changes to regulatory standards
in a timely manner and assess their impact to
strengthen decision making processes and
integrate these in the business strategy of
each of the industries in which it operates;
Convergence of risk, compliance processes
and controls mechanisms to ensure
continued operational efficiency and
effectiveness of business processes;
Assign single point of accountability for
compliance activities in the organisation.
Changes since last year: There have been no
significant changes in the nature of the risk
exposures over the last 12 months. Automation
of a comprehensive compliance management
framework has been key for this period and has
been successfully implemented across the Group
in India, resulting in better and transparent
controls related to regulatory compliances.
D.
function and embedded security teams provide
assurance to businesses at all levels with respect
to the management of security risks affecting its
people, assets and operations.
To respond to natural calamities Reliance
maintains disaster recovery, crisis and business
continuity management plans to respond to a
disruption or an incident.
Changes since last year: Risk of terrorism is
increasing globally as evidenced by intelligence
projections and events of last year. Continuous
application of appropriate mitigation measures
are implemented to ensure exposures remain
within acceptable levels.
Cybersecurity Risk
Reliance is at the forefront of adopting Technology
Led Innovations. An increasing number of
business processes are now digitally driven. The
larger the digital landscape, the larger is the
potential cyber security threat. A digital security
breach or disruption to digital infrastructure,
due to intentional or unintentional actions, such
as cyber- attacks or human error could lead to
serious business impacts. These include injury to
staff, loss of process control, impact on business
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 has continued to strengthen
its responses to cybersecurity threats through
proactive and reactive risk mitigations. These
include, proactive activities to continuously
improve its cybersecurity policies, standards,
technical safeguard, ongoing monitoring of new
and existing threats and cyber 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.
Changes since last year: The World economic
Forum (WEF) in its latest Global Risk Report (2017)
has flagged “Massive incident of data fraud and
theft” as one of the top 5 global Risk in terms of
likelihood. Considering the large digital landscape
in Reliance, the Cyber security risks are increasing
which require ongoing efforts to counter these
evolving threats. Substantial improvement was
made on the cyber security risk posture during
the last year. Some of the notable measures are:
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
158
B.
Indirect Tax Policy and Compliance Risks
Goods and Services tax (GST) has been identified
as one of the most important tax reforms post-
independence. The proposed GST levy will impact
processes and systems across Reliance's entire
value chain of operations, namely procurement,
manufacturing, distribution, warehousing, sales,
and pricing. Furthermore, some of the most
significant impact relates to the (1) exclusion of
petroleum products and the uncertainty about
when it will be brought under the ambit of GST
and (2) interpretational issues in a number of new
provisions.
Mitigation: Reliance's mitigation measures
encompass the following strategies:
1.
2.
3.
4.
5.
Evaluating different scenarios related to the
design and application of GST in the various
businesses.
Continually tracking policy development
regarding GST and update prepared
scenarios.
Identification of any areas of adverse
impact and the preparation of contingency
measures.
Identification of issues and concerns needing
representations to the authorities and
developing strategies for effective advocacy.
A centrally managed project to ensure all
process and systems changes are fully tested
and integrated.
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 optimising the cost of
borrowings.
Foreign Exchange Risk
Reliance prepares its financial statements in
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 avails long-term foreign
currency liabilities (primarily in USD, EURO
and JPY) to fund its capital investments.
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.
Short-term foreign currency asset – liability
mismatch is continuously monitored and hedged.
The foreign exchange market is well regulated
and Reliance ensures compliance with all the
regulations.
Changes since last year: There have been no
significant changes in the nature of the risk
exposures over the last 12 months. Monitoring
mechanisms within the Treasury function have
been enhanced to further strengthen the control
framework.
Changes since last year: New risk due to roll out
of GST in FY 2017-18.
3. HOW RELIANCE MANAGES RISK
IV. Financial Risks
A.
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 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 funds 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.
Reliance manages, monitors and reports on the principal
risks and uncertainties that can impact its ability to achieve
its strategic objectives. 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.
The Reliance management systems, organisational
structures, processes, standards, code of conduct and
values and behaviours together govern how Reliance
conducts its business and manages associated risks.
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:
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
159
plans developed to help reduce risk and deliver
strong, sustainable performance.
3.2 Continuous Assurance through the Three Lines
of Defense
Reliance has adopted a Three Lines of Defense model
to enable continuous and real time assurance on
key risk exposures and the ongoing effectiveness of
controls.
First Line of Defense: Business and Functional
Leaders continuously verify for themselves that risk
management activities they have in place are effective.
In conjunction with the risk management activities
themselves, this monitoring activity provides the first
line of defense.
Second Line of Defense: A network of functional
experts provide Functional Assurance to the
Businesses in their area of expertise by:
1.
Providing a view, independent of the line, of risks
within their area of functional expertise.
Setting standards for the management of risks
and provide guidance on mitigations to relevant
Businesses in their area of expertise.
Monitoring or verifying the effectiveness of
controls and other risk management activities
completed by the Business.
2.
3.
Third Line of Defense - Group Audit: Reliance has
established an independent Group Audit function,
reporting to the Chairman of the Board and the Audit
Committee. The Group Audit function is mandated
to provide assurance and advisory support on the
management systems that manage the key group
risks across all subsidiaries and investments by the
Reliance Group. Group Audit function is aligned to the
key business segments in order to deliver Group Wide
assurance coverage as part of the third line of defense.
The Group Audit function has been set up as a multi-
disciplinary teams that deliver assurance across all
areas of risk including strategic & commercial, safety &
operational, compliance & control and financial risks
across all business segments. Specialised resources,
real time assurance technologies, data mining,
analytic techniques and external benchmarking of
best practices are leveraged extensively to achieve
Group wide assurance coverage and deliver audits in
an efficient and effective manner. The Group Audit
function operates in line with international auditing
standards and continuously improves its functional
capabilities to achieve world class assurance best
practices.
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.
3.1 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
three 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
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.
Business and Strategic Risk Management -
Through Business Risk and Assurance
Committees (BRAC), Reliance businesses and
functions manage risk as part of key business
processes such as strategy, planning, operations,
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.
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 (OMS) integrates Reliance 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
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
160
3.3 Developments to Strengthen Reliance's
Approach to Risk Management
To support the strengthening of Reliance's approach
to risk management, the following actions have been
put in place during the financial year:
1.
The Company continues to integrate
methodologies, processes and systems to support
the ongoing development of integrated assurance
across the “Three Lines of Defense”. This enables
a common integrated view of risks, optimal risk
2.
3.
mitigation responses, continuous monitoring of
internal controls and efficient assurance activities.
The Group Risk function has started to bring
together a Group wide risk community from
specialist risk areas (e.g. IT, Treasury, HSE etc.) to
further enable the alignment, integration and
sharing of best practices across the second line of
defense.
Reliance deployed control self-assessments for the
full scope of financial controls and initiated the
automation of continuous controls monitoring by
the second line of defense.
Oversight and Governance
Board
Committees
Main Board
Meeting
Risk
Management
Committee
Audit
Commitee
CSR &
Governance
Committee
HSE
Committee
Stakeholders
Relationship
Committee
Finance
Committee
HR Nomination &
Remuneration
Committee
Agree Highest Priority
Group Risks
Allocate Highest Priority Risks to Executive
Committee and Board Committees for oversight
Feedback and endorsement of proposed key strategic decisions to Executive Team Meeting
Group
Operational Risk
Committee
Group
Financial Risk
Committee
Group Audit
and Disclosures
Committee
Group
Compliance
Committee
Group
People
Committee
Functional views/inputs
R&M
Manufacturing
Petchem
E&P
BRACs integrate multidisciplinary views on key organisational
risks, prioritise the most relevant risks and align risk management,
control and assurance activities.
R&D
IT
S&OR
RPMG
P&C
Security
FC&A
HR
Through their functional representation in the Business Risk & Assurance Committees (BRAC),
the Function Risk & Assurance Committees (FRAC) provide a view, independent of the line,
of risks within their area of functional expertise across the Group and report that combined
view with regards to the Highest Priority Group Risks to Executive Committee and Board for
oversight. The FRACs focus on risks in their functional area of expertise and help the Business
with group wide risk response strategies.
Functional Risks
Business
and
Functional
Leaders
Segment Safety
& Operational
Risk Committee
Segment Legal
& Compliance
Committee
Other
Committee
RELIANCE MANAGEMENT SYSTEM
As part of extensive Business Transformation initiative Reliance has put in place a comprehensive Reliance Management System
(RMS), a holistic set of management systems, organisational structures, processes and requirements. Reliance believes RMS has
substantially enabled it to become a more systematic and simpler company with extensive digitisation. It shall enable a still more
evolved governance and risk assurance framework for the Company through its three key elements: Operating Management System
(OMS), Financial Management System (FMS) and People Management System (PMS).
Executive
Team
Executive Team
Meeting
Aggregation to
Group Risks
Business/
Function Risk
& Assurance
Committees
i
s
w
e
V
s
s
e
n
i
s
u
B
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17
161
AWARDS AND RECOGNITIONS
Some of the major awards and recognitions
conferred during FY 2016-17 are:
LEADERSHIP
a.
Shri Mukesh D. Ambani ranked first by India
Today in the definitive list of India's 50 most
powerful.
Shri Mukesh D. Ambani has entered the
Light Reading’s ‘Hall of Fame 2017’ that
recognises individuals for their contribution
to the global communications industry.
Shri Mukesh D. Ambani is the only Indian on
Forbes Global Game Changers List for 2017.
Smt. Nita M. Ambani felicitated by
Metropolitan Museum of Art for her
philanthropic work.
Reliance Foundation Chairperson
Smt. Nita M. Ambani became the first
Indian woman member of the International
Olympic Committee (IOC).
RIL was conferred the Dun & Bradstreet
Corporate Award 2016 for leading the
Oil-refining and Marketing business in
India.
HUMAN RESOURCES
a.
Received Greentech Gold award for best HR
strategy 2016.
Awarded National Institute of Personnel
Management award for best HR practices
2016.
Awarded Golden peacock award for HR
excellence 2016.
RIL won Golden Peacock National Training
award 2017.
Reliance debuts in LinkedIn 'Top companies
-where India wants to work' list-2017.
b.
c.
d.
e.
f.
b.
c.
d.
e.
Ranked first by India Today as India's most powerful
First Indian woman member of the IOC
PROJECT MANAGEMENT
a.
Received Global Performance Excellence
Award-2016 from Asia Pacific Quality
Organisation, Philippines.
Won the Award in “Cost Optimisation
Category” at “Manufacturing Today -
Reinventing the Future - 2016”.
b.
QUALITY
a.
Received ‘Par excellence’ award in 30th
National convention on Quality concepts –
NCQC 2016.
Golden Peacock Award
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 162
b.
c.
d.
e.
f.
Winner of nine ‘Par excellence’ and ‘Excellence’ awards at
National level Quality concepts competition – NCQC 2016.
Received Golden Peacock National Quality Award 2016.
“Quality Achievements Award 2016” in Gold Category by
ESQR (European Society for Quality Research) at Quality
Awards function held in UK.
“The Majestic Five Continents Award for Quality &
Excellence 2016” at a function held in Germany.
Received Gold award for Quality control in Polyester
manufacturing at ICQCC, Bangkok.
ENERGY & WATER CONSERVATION/
EFFICIENCY
a.
Received Excellent Energy Efficiency Unit Award at CII’s
17th National Award for Excellence in Energy Management.
Won National energy conservation award 2016 by Bureau
of Energy Efficiency (BEE).
Won CII "Excellent Energy Efficient Unit" Award - 2016.
Received Indian Chemical Council (ICC) award for
excellence in energy conservation and management.
Received 17th Annual Greentech Environment Platinum
Award 2017.
TECHNOLOGY, PATENTS, R&D AND
INNOVATION
a.
Recron GreenGold fibre has been certified as ‘Greenest
Textile fibre in the World' by SGS Hong Kong.
Development of Recron Recosilk first time in the world in
Polyester manufacturing plant.
Winner of IP Business Congress Asia Elite award 2016 from
Intellectual Asset Management (IAM).
Won The Australasian Maintenance Excellence Award 2016
from SIRF business network, Australia.
Winner of North American Maintenance Excellence Award
for Process Manufacturing 2016.
Received IMC Ram Krishna Bajaj National Quality
Performance Excellence Trophy 2016 in the Manufacturing
Category.
b.
c.
d.
e.
b.
c.
d.
e.
f.
HEALTH, SAFETY & ENVIRONMENT
a.
Winner of the first Healthy Workplace Platinum 2016 Award
instituted by the Arogya World India Trust and Public
Health Foundation of India.
Won Golden peacock award for Occupational Health &
Safety 2016.
b.
b.
c.
d.
e.
Won ‘Silver W3 Award’ for creative excellence on the web by
the Academy of Interactive in 2016.
Received Visual Arts and wins 'Excellence in Digital
Experience’ award in SAP Ace Awards 2016.
Reliance Footprint was awarded Retailer of the Year - Non
Apparel/Footwear at Retail Asia Congress Awards 2016.
Reliance Jewels receives the “Jewellery Brand of the Year”
award at 94.3 My FM & Stars of the Industry Jewellery
Awards 2016.
JIO
a.
b.
Reliance Jio Infocomm Ltd. (RJIL) was conferred a special
award for its staff-related practices by the Society for
Human Resource management in 2016.
Reliance Jio Infocomm Ltd. ("Jio") and Samsung Electronics
Co. Ltd. ("Samsung"), won the "Best Mobile Innovation for
Emerging Markets" for Social and Economic Development
from Global Mobile Awards 2017 at Mobile World Congress
2017.
CAPITAL RESOURCES
a.
TXF Perfect 10 Top Deal of 2016 - Best Overall ECA/Project
Finance Deal of the Year; Reliance VLEC Deal
2016 Deal of the Year Award: ECA – East from Marine
Money, Reliance VLEC Deal
GTF – Shipping Debt Deal of the Year Asia – 2016; Reliance
VLEC Deal
The Asset – Best Transport Deal – 2016; Reliance VLEC Deal
Trade Finance – Deal of the Year 2016; Reliance VLEC Deal
Corporate Treasurer award for the best Trade Finance
strategy
CORPORATE SOCIAL RESPONSIBILITY
a.
Winner of India CSR Awards 2016 for Best Documentary
Film.
Winner of India CSR Awards 2016 for Water Conservation
efforts.
Winner of India CSR Awards 2016 for Agriculture
Development.
Received “Best ART (Anti-Retroviral Therapy) Centre Award”
by Gujarat State AIDS Control Society.
“Best use of CSR practices in Manufacturing award 2016” at
Asia Best CSR practices awards function held in Singapore.
Won ‘First ICSI CSR Excellence Award 2016’ by The Institute
of Company Secretaries of India.
b.
c.
d.
e.
f.
b.
c.
d.
e.
f.
c. Won Greentech Safety “Gold” Award 2016.
RETAIL
a.
Great Place to Work Institute and Retailers Association of
India (RAI) have recognised Reliance Retail as the great
place to work for in retail industry in India in 2016.
SUSTAINABILITY
a.
b.
Winner of Golden peacock award for Sustainability 2016.
Won the best "Sustainable Corporate of the year" 2017 at
Sustainability 4.0 awards by Frost and Sullivan and TERI
Reliance Industries Limited Life is Beautiful. Life is Digital.MANAGEMENT’S DISCUSSION AND ANALYSISIntegrated Annual Report 2016-17 163
GLOSSARY
1
2
3
4
5
6
7
8
9
Downstream
Upstream
The downstream commonly refers to the refining of petroleum crude oil and the processing and purify-
ing of raw natural gas, as well as the marketing and distribution of products derived from crude oil and
natural gas.
The upstream includes searching for potential underground or underwater crude oil and natural gas
fields, drilling exploratory wells, and subsequently drilling and operating the wells that recover and
bring the crude oil and/or raw natural gas to the surface.
Nelson Complexity
Index
The Nelson complexity index (NCI) is a measure to compare the secondary conversion capacity of a pe-
troleum refinery with the primary distillation capacity. The index provides an easy metric for quantifying
and ranking the complexity of various refineries and units.
Gross Refining Margin
(GRM)
GRM is the difference between crude oil price and total value of petroleum products produced by the
refinery.
Crude throughput
Crude throughput is the total amount of crude that goes into a refinery before it comes out processed
Crack spreads
Crack spreads are differences between wholesale petroleum product prices and crude oil prices
Refinery Off gas Cracker A refinery off-gas cracker is a petrochemical unit that will use the gas generated as a byproduct of
Pet Coke Gasification
project
refining operations
The gasifier will convert petroleum coke, the lowest value refinery residue, into high value syngas
Coal Bed Methane (CBM) CBM is a form of natural gas extracted from coal beds.
10 Reliance Retail 2.0
11 LTE technology (LTE)
Reliance Retail 2.0 is unveiled with launch of multi-channel initiatives. While the first round of growth for
Reliance Retail was by way of asset heavy investments, the second round is to be through a much better
use of investments and sweating of assets.
LTE is a standard for high-speed wireless communication for mobile phones and data terminals, based
on the GSM/EDGE and UMTS/HSPA technologies. It increases the capacity and speed using a different
radio interface together with core network improvements.
Management’s Discussion and Analysis02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 164
REPORT ON CORPORATE SOCIAL RESPONSIBILITY
THE INTEGRATED APPROACH
JAGANNATHA
KUMAR
SUDARSHAN SUCHI
“Reliance’s endeavour to build a stronger and more empowered new India starts from the grassroots. The Company believes
that the foundations of economic growth are strong if the entire society is a part of the nation’s growth story. The Company's
efforts of bridging the rural-urban gap is an effort to realise this dream.”
`674 crore spent on CSR initiatives
Beneficiary of the Foundation’s initiatives
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 165
Enhancing livelihoods, Transforming lives
Reliance believes in corporate citizenship and is committed
towards giving back to the society in a manner that resonates
with India's national development goals. Through focused
efforts, the organisation seeks to transform and enrich the
lives of its citizens. This is achieved through focused efforts to
enhance their standard of living.
Reliance has undertaken initiatives in compliance with Schedule
VII of Section 135 of the Companies Act, 2013. In order to
streamline its developmental initiatives, Reliance has identified
the following focus areas: Rural Transformation, Health,
Education, Sports for Development, Disaster Response, Arts,
Culture and Heritage and Urban Renewal.
Through leveraging technology and innovation, the endeavour
is to provide sustainable agricultural and livelihood solutions for
the marginalised and underprivileged communities
across India.
The key philosophy of all CSR initiatives of RIL is guided by three
core commitments of SCALE, IMPACT and SUSTAINABILITY (SIS).
RIL’s CSR initiatives focus on various social challenges, all aimed
at providing a better quality of life and livelihoods for a stronger
and inclusive India.
Reliance Foundation (RF), established in 2010, is an umbrella
organisation for the Company’s social development initiatives.
Most of the CSR activities of the Company are carried out
under the aegis of the Reliance Foundation. These initiatives
are aligned with the objectives defined by the Sustainable
Development Goals (SDGs), outlined in the United Nations 2030
Agenda for Sustainable Development.
As stated in its CSR Policy, the Company focuses on these areas
through direct engagement and partnering with organisations
having relevant expertise and experience. Reliance aims to scale
up further for better reach, more effective engagement and
greater impact.
The Company seeks to transform
lives by leveraging technology and
innovation. The endeavour is to
provide sustainable solutions for the
marginalised and underprivileged
communities across India.
Report on Corporate Social Responsibility02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 166
REPORT ON CORPORATE SOCIAL RESPONSIBILITY
HIGHLIGHTS OF THE FINANCIAL YEAR
RURAL
TRANSFORMATION
Livelihoods of more than 8 lakh farmers, fisher folks and livestock owners
enhanced (over 28 lakh since inception).
Over 2,200 Ha of land was brought under improved cultivation (over 56,000
Ha since inception).
Water harvesting and conservation efforts resulted in bringing over 2,900
Ha land under irrigation (over 23,500 Ha since inception).
Water harvesting structures created to collect over 32 lakh cubic metres
of rainwater (over 5.86 crore cubic metres since inception), securing 131
villages from a drinking water perspective.
Over 12 lakh saplings were planted (Over 1.38 crore since inception).
HEALTH
Over 5 lakh health consultations provided to patients through Reliance
managed hospitals, mobile and static medical units and various health
camps (over 40 lakh since inception).
Over 33,900 women were screened for anaemia, of which 8,000 women
were diagnosed and received treatment for it (over 45,900 women
screened, of which more than 12,000 women were treated since inception).
Over 29,700 children were screened for malnutrition and of these more
than 2,000 children were found malnourished and followed up for
treatment (over 42,500 children screened and more than 3,500 received
follow-up treatment since inception). Over 1,000 severely malnourished
children were linked to rehabilitation centres for treatment.
The eye care services supported 1,096 corneal transplants under the Drishti
Programme (more than 15,500 transplants since inception).
Over 400 HIV affected children were provided care and support along with
nutrition supplementations.
EDUCATION
528 meritorious students were given scholarships to pursue higher studies
(over 13,100 scholarships since inception).
Under Education for All initiative, quality education was provided to about
1 lakh underprivileged children. This year, the initiative supported 12
partner NGOs for this noble cause.
Launched a Digital Learning Van that will provide access to digital learning
to thousands of underprivileged children across Mumbai.
Integrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital.
167
SPORTS FOR
DEVELOPMENT
Engaged with about 6 lakh students across 18 cities who were encouraged
to adopt healthy and active lifestyle by integrating basketball into their
physical education curriculum through the RF Jr. NBA programme (about
34 lakh students since inception).
18 children were awarded scholarships under Young Champs programme
for developing football abilities (41 scholarships since inception).
The rural sports initiative, aimed at empowering communities to improve
education, health, gender and leadership qualities, has reached out to more
than 1,500 rural youth (about 4,000 youth since inception).
DISASTER RESPONSE
Supported more than 100 drought affected villages across 4 districts of
Maharashtra by providing over 60 million litres of drinking water.
Sona river in Aurangabad rejuvenated, ensuring drinking water security for
more than 14,000 people.
Provided support through technology enabled solutions to the flood
affected areas in Madhya Pradesh. Under this, timely information on the
disaster related compensations, procedures for availing it and disease
management of crops was disseminated to the affected people.
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.
URBAN
RENEWAL
A cable suspension bridge “Sudama Setu” that connects River Gomati and
Panchkui area is constructed by Reliance. It is now facilitating the pilgrims
to visit the Panchnad and Panchkui area.
Report on Corporate Social Responsibility02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
168
EXPENDITURE ON CSR INITIATIVES
During FY 2016-17, Reliance contributed `674 crore
towards Corporate Social Responsibility (CSR).
(` in crore)
CSR Expenditure
FY 2016-17
FY 2015-16
Rural Transformation
Health
Education
Sports For Development
Disaster Response
Arts, Culture and Heritage
Urban Renewal
Total
138
267
227
27
11
1
3
674
103
315
222
9
10
-
-
659
NOTE: Out of Total CSR expenditure, `659 crore is from RIL and rest is from the
group companies.
The developmental initiatives of Reliance have so far touched
the lives of more than 12 million people across India in
more than 12,500 villages and 74 urban locations. This year,
Reliance has undertaken several significant interventions
aimed at improving lives of the marginal and underprivileged
communities. The following sections provide details of the
Company's key initiatives undertaken in this year.
RURAL TRANSFORMATION
Reliance works towards bridging the developmental gap
between rural 'Bharat' and urban India by improving rural
livelihood, addressing poverty, hunger and malnutrition. Key
initiatives in this area include supporting farm and non-farm
livelihoods. Towards creating holistic self-reliant and sustainable
models of rural transformation, the organisation works to
improve productivity of the farm lands, ensuring water security
by water conservation and rain-water harvesting. We help
rural communities in organising themselves to form Village
Associations (VA's) and producer companies. In doing so,
technology is used as an enabler for delivering need based
information to improve the quality of life. These initiatives
focus on improving food security, enhancing nutrition and
developing community infrastructure. Since inception, the
programme has reached out to over 52,000 families across 500
villages.
INSTITUTION BUILDING
Reliance works to establish its rural transformation model
in building community institutions that are based on values
of democracy, inclusiveness and transparency to achieve
holistic village development. The primary outcome of the
engagement is an empowered and self-reliant community
based organisation with robust membership base and strong
leadership. The uniqueness in design lies in the co-creation and
co-design of solutions contextualised as per social, economic
and ecological situations. Till date, more than 52,000 rural
households have joined hands to form 529 Village Associations
to drive village transformation.
WATER SECURITY
Under its rural transformation initiatives, Reliance has
contributed towards conserving rainwater in all its programme
villages. Various harvesting structures including new and
renovated earthen check dams, masonry check dams,
farm ponds and open wells, temporary structures such as
boribandhan, tanks etc. have been constructed. Through these
structures, over 5.86 crore cubic metres of rain water has been
harvested since inception. Through these initiatives, over
2,900 hectares of land has been brought under water efficient
irrigation system this year and over 23,500 hectares brought
under irrigation since inception.
Reliance Foundation used ferro-cement technology for
overcoming the challenges in construction of conventional
water storage tanks especially in the hilly terrain of Uttarakhand
where construction in itself was a challenge. These tanks
reduce the cost of water storage by almost three-times. Over
100 ferro-cement structures were constructed last year across
the villages. As a result of these water security measures, 131
villages achieved drinking water security and 51 villages were
secured for irrigation. For effective use of water resources, water
budgeting has been done in 354 villages.
586 lakh cubic metres of water storage capacity
created
CUMULATIVE RAIN WATER HARVESTING
CAPACITIES CREATED
(in lakh cubic metres)
586
549
447
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
244
FY 2012-13
63
FOOD AND NUTRITION SECURITY
Reliance has adopted integrated sustainable crop management
practices to enhance crop productivity and availability of
food grains in every household throughout the year. At the
REPORT ON CORPORATE SOCIAL RESPONSIBILITYIntegrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 169
same time, Reliance ensured reduction in cost of production
to enhance farm incomes. Till date, over 56,000 Ha of land has
been brought under sustainable agriculture with nearly 5,000
Ha of private wasted land brought under cultivation. This has
ensured food security for over 20,000 households.
being used by farmers of banana plantations to protect fruits
from pests and birds, thus yielding a good market value with
increased returns. Till date, Reliance has distributed over 50,000
banana covers to over 450 farmers. This low cost technology is a
simple solution that can be replicated and scaled up.
To improve nutritional food intake, Reliance has been setting
up nutrition gardens. As on date nearly 8,000 Reliance Nutrition
Gardens (RNGs) have been developed. Reliance’s RNG model
has been highly praised by various Government and
Non-Government organisations on different platforms.
Several organisations have adopted the Reliance model of
nutrition garden (RNG) and have scaled it up in their project
areas with technical support from the implementing team of
Reliance Foundation. For instance, Government of Maharashtra
(GoM) has adopted the nutrition garden model to scale it up
in 8 districts. Under this initiative, Reliance has trained 1,066
master trainers from various line departments on design, layout
and maintenance of RNG. This has resulted in establishment of
3,035 nutrition gardens benefitting over 62,000 children across
these districts. The content developed by Reliance on nutrition
garden is used in a newly developed application titled “WCD” in
the section of nutrition garden by Department of Women and
Child Development, GoM.
PRODUCER COMPANIES
A significant downside for marginal farmers is the marketability
of farm produce. Several challenges which influence the
marketing of agriculture produce such as smaller land holdings,
smaller volumes of produce make it a difficult and unviable
business proposition. Risks such as climatic variability, monsoon
failure, price fluctuations and lack of market access negatively
impact the sustenance of farming as a primary occupation. As
a sustainable solution for farm and non-farm livelihoods and
making agriculture a productive business, Reliance has been
supporting marginal and small farmers in establishing producer
companies. Reliance works towards creating market linkages
of the products for better price realisation. So far, 17 producer
companies have been established benefitting over 20,000
families. These companies have transacted over 4,500 metric
tonnes of farm and non-farm produce, with a business turnover
of over `10 crore.
USE OF TECHNOLOGY IN ENHANCING
AGRICULTURAL OUTPUT
Reliance has been developing technological solutions for
improved agricultural productivity. Technologies which
are lower in cost and could yield higher returns are being
introduced in rural areas for producing Azolla, a green manure
for paddy that has an immense potential to meet the growing
demand of fodder among small and marginal farmers. Over
800 such farmers in Andhra Pradesh have benefitted from
these technologies. Technologies like Banana bunch covers are
50,000 Banana covers distributed to farmers
ECOLOGICAL SECURITY
This year, Reliance has conserved over 2,200 hectares of
unproductive land and converted it into cultivable land (more
than 56,000 hectares since inception). More than 80% of this
land has been used for food production while rest of it has
been used for activities such as cultivation of fodder and other
commercial crops etc. Furthermore, in an effort to promote
bio-diversity and preserve the ecology, over 12 lakh saplings
were planted this year (over 1.38 crore saplings planted since
inception).
1.38 crore saplings have been planted since
inception
LAND BROUGHT UNDER IMPROVED CULTIVATION
(in hectare)
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
31,010
FY 2012-13
15,314
56,139
53,934
48,912
In order to get high yield from cost effective farming, Reliance
has supported in conducting soil health activities such as
workshops, soil testing, application of nutrients etc. This year,
essential nutrients were applied to about 797 hectares of
agricultural land. Additionally, in collaboration with different
knowledge partners, over 3,500 soil health tests were
conducted this year (over 10,371 tests since inception) based on
which relevant advisories were disseminated at village level.
56,000 hectares of land brought under
improved cultivation
Report on Corporate Social Responsibility02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 170
INFORMATION SERVICES FOR LIVELIHOOD
ENHANCEMENT
Reliance is empowering communities by providing reliable and
robust information tailored to the local needs of farmers, fisher
folks and livestock owners. This information is disseminated
through digital technology and direct community level
interventions. The mobile based advisories have reached out
to about 8 lakh individuals this year. Together, the technology
embedded information has reached out to about 28 lakh
individuals since inception. As a part of direct interventions,
interactive programmes are being conducted at community
level on various issues such as health, agriculture, livelihood,
livestock etc. This year, over 3,700 interactive programmes
(over 10,000 programmes since inception) were conducted
that reached out to over 1.4 lakh individuals (over 3.4 lakh
individuals since inception).
Reliance has been collaborating with like-minded organisations
including research institutions, line departments, NGOs and
knowledge providers. So far, it has partnered with over 619
information providers and 284 grassroots organisations.
Through these partners, the information services reach out to
the most needy population subgroups.
informed about the procedures through teleconferencing
and toll free helplines to avail the benefits of schemes such
as Sardar Awas Yojana, Pradhan Mantri Gramin Awaas Yojana,
Vriddha Pension Yojana, Animal Loan Yojana etc. The villages
are also collaborating with different Government schemes for
leveraging their fund to achieve the Open Defecation Free
(ODF) status. As a result of these efforts, over 15,000 toilets have
been constructed in about 263 villages and 48 villages were
declared to be ODF by the Government.
15,000+
toilets were constructed across
263 villages to improve health and
sanitation
48
villages declared to be open
defecation free
DEVELOPING MODEL VILLAGES
Reliance will work in 53 villages of Parbhani and Yavatmal
districts of Maharashtra supporting the state government in
their quest for sustainable development in villages through
‘Mission Village Transformation’.
28 lakh
farmers, fisher folks and livestock owners
exposed to technology embedded
information
3,000
Thrift groups of women are formed to
enhance financial decision making
ILLUSTRATION: Information services protecting
fisher folks from adverse sea conditions
Action Taken Fishermen who anchor their boats at
Mirkarwada Jetty near Ratnagiri received information about
bad weather conditions through Reliance’s voice message
advisories. The forecast warned the fishermen to visit the sea
while they were on the verge of launching their boats. The
forecast thus saved fisher folk’s boats, fishing nets and most of
all their lives.
Outcome The messages from Reliance reduced the
fishermen’s input cost such as diesel, ice etc. and thus
increased the profit.
ILLUSTRATION: Empowering women on financial
management and decision making
Action Taken Reliance is supporting rural women to form
thrift co-operatives for bringing social and economic freedom
through accumulation and retention of local wealth within
the village. This model enables and engages women to
participate, drive and manage the socio-economic change
processes while being financially self-reliant and playing an
active role in decision making.
Outcome More than 3,000 women have formed 106 thrift
groups across 14 districts in 7 states, having saved and
collected over `22 lakh.
SWACHH BHARAT ABHIYAN
Since the launch of Government of India’s Swachh Bharat
Mission, Reliance has been conducting several activities to
improve health outcomes in its programme villages. This
year, awareness campaigns were carried out through posters,
kalajathas and rallies in each of the programme villages to
sensitise them on the importance of toilet construction.
Additionally, using technological platform, people were also
REPORT ON CORPORATE SOCIAL RESPONSIBILITYIntegrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 171
ILLUSTRATION: Transition from a contract labourer
to a self-sustained farmer
Impact of Rural Transformation Initiatives
Action Taken Due to lack of irrigation facilities, Mr. Vitthal
had to work as a contract labourer despite owning 6 acres of
agricultural land. Due to excessive dependence on rain, Vitthal
earned only `31,000 a year by cultivating toor, cotton and
soya bean.
In 2012, Reliance Foundation mobilised villagers to form
Bhumiputra Shetkari Samiti, the local village association
(VA). The VA helped Vitthal with bunding, trenching, and the
application of black soil and farmyard manure on his land. The
VA also built a water harvesting structure that provided access
to irrigation.
Outcome The productivity of Vitthal’s crops improved and
his farmlands thrived. He started growing Rabi crops like
sorghum, wheat, spinach, fenugreek and pulses, in addition to
his usual Kharif crops. Vitthal’s total annual income tripled.
ILLUSTRATION: Empowering women to emerge as a
role model
Action Taken Sujata Rout and her husband Dinabandhu
owned 7.55 acres of land of which only 4.07 acres was
utilised for cultivating paddy. The income generated from
selling 49 quintals of paddy was not sufficient for feeding the
family. In 2013, Reliance Foundation (RF) launched its Rural
Transformation programme in Sujata’s village, Kalijharan.
Attending the Village Association (VA) meetings, Sujata soon
found her voice and became an active participant. The VA
helped Sujata rejuvenate her fields through different land
development activities, including land levelling and bunding.
With RF’s support, she also received training on professional
skills such as stitching and food processing, to increase her
income.
Outcome Through RF’s assistance, Sujata Rout used her
entrepreneurial ingenuity to generate multiple sources of
income for her family. The produce of her farm shot up from
49 quintals of paddy to 89 quintals. In the process, she has
emerged as a role model for women in her district.
Impact of Rural Transformation Initiatives
Enhanced income and livelihood of rural marginal and
small farmers
Increased employment opportunities
Ensuring sustainable agricultural production with
secured water needs
Improved food and nutrition security, and eradication of
hunger and malnutrition
Creating value chain for agricultural produce
Empowering women and ensuring gender equality in
village development processes
Improved health, hygiene and sanitation
Ensuring financial security for underprivileged women
Skill development for better employment opportunities
Ensure access to affordable, reliable, sustainable and
modern energy for all
Promote peaceful and inclusive societies for long-term
sustainable development
Improved quality of life
HEALTH
Reliance addresses issues around affordability and accessibility
of quality healthcare and brings about improvement in
awareness and healthy living practices in various parts of India.
The focus is on improving primary, secondary and tertiary
healthcare facilities to enhance preventive and curative services.
Reliance also works on bringing about behavioural change for
improving maternal and child health.
Another key focus area is improving healthcare delivery
through innovative outreach programmes. Reliance works in
the areas of communicable and non-communicable diseases
and uses technology for training, competency evaluation and
clinical decision support for medical professionals. Through the
Drishti programme, the Company has supported a number of
visually impaired people with corneal transplant surgeries.
40 lakh health consultations were provided
PREVENTIVE AND PRIMARY HEALTHCARE
SERVICES
Reliance addresses health needs of the underprivileged through
its preventive and primary healthcare services in both rural
and urban areas. The health services are made more accessible
through nine Mobile Medical Units (MMUs) and three Static
Medical Units (SMUs) in Maharashtra, Uttarakhand and Madhya
Pradesh. This year, one more MMU has been launched in
Palghar district which will provide health services outreach in
11 villages to about 18,000 people.
Report on Corporate Social Responsibility02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
172
The medical units are equipped with state-of-the-art
technology, including cloud-based software to store patient
information. Through Reliance managed hospitals, MMUs, SMUs
and camps, over 5 lakh health consultations were provided this
year. The total health consultations provided since inception
are over 40 lakh. A survey found that the patients who availed
services from SMUs and MMUs are highly satisfied with the
healthcare providers, availability of diagnostic facilities and time
spent by healthcare providers.
HEALTHCARE FOR WOMEN AND CHILDREN
Through dedicated community initiatives, Reliance aims to
address the key health challenges of women and children
including malnutrition, anaemia, maternal health and improved
menstrual hygiene. Under its newly initiated maternal and
child health programme in the rural areas, Reliance engages
community volunteers in planning and delivering the health
needs of pregnant women and mothers. The programme
has adopted a unique community engagement model
where volunteers from the community are involved and
empowered to provide basic healthcare services. These
community volunteers called Swaasth Sanginis, who are mostly
Accredited Social Health Activists (ASHAs) working under
the health systems, are trained and empowered to provide
basic diagnostic services besides educating women on birth
preparedness and complication readiness during maternity.
The nutrition intervention spread across 136 villages and 74
urban locations has screened 29,706 children under
5 years of age for malnutrition this year (42,528 screenings
since inception). Of these, about 8 percent i.e. 2,217 children
were identified malnourished and received treatment (3,511
treatments since inception). Over 33,958 women were screened
for anaemia this year (45,979 screenings since inception).
A study undertaken to evaluate the impact of nutrition
intervention in the urban slums of Mumbai and
Navi Mumbai shows a remarkable improvement in the health of
children below five years. The study found that almost 56% of
malnourished children showed an improvement in nutritional
outcome while another 35% children got cured of malnutrition.
These findings demonstrate that the services provided through
Reliance health outreach programme were found beneficial to
the marginalised urban population.
This year, the programme has enrolled over 1,440 women
for availing maternal health services (2,441 women since
inception). Through the maternal health intervention, over 350
women were saved from high risk complications that could
otherwise cause death.
The health professionals routinely conduct awareness
campaigns on health and nutrition. This year, the campaign
was scaled up through the use of technology in which Jio TV
conferences were organised to provide information to the local
communities. In collaboration with the District Health Officials
of Mallapuram, Kerala, a conference was organised to showcase
the importance of immunisation and child health which drew
a viewership of more than 1.5 lakh people. This conference
was aimed at reducing diphtheria cases and improving
immunisation rate among children in the district.
40,000+ Children and women screened for
malnutrition and anaemia respectively
ILLUSTRATION: Mission Zero Malnourishment Project
Action Taken A campaign to attain Zero Malnourishment
has been set up by Reliance at Nagothane in a public-
private partnership programme. The project cycle involves
networking with local teachers for identification of
malnourished children, formal testing of blood, urine and
X-Ray for identified children, medicines and nutritious food
support, monthly paediatric check-ups, fortnightly progress
monitoring and continuous analysis of the process.
Outcome The project has identified and addressed
malnutrition among 123 children across 44 villages of Roha
and Pen Talukas.
SIR H. N. RELIANCE FOUNDATION HOSPITAL
AND RESEARCH CENTRE
Sir H. N. Reliance Foundation Hospital (RFH), in its 3rd year of
operation is getting recognised and developed as a 'Centre of
Quality Care' in Mumbai. Inaugurated by Hon’ble Prime Minister
Shri Narendra Modi, the hospital has crossed many medical
milestones in its initial journey.
The hospital performed 3,415 surgeries this year and 608
Cath-lab procedures with excellent outcomes. Recently,
the hospital took a significant stride by starting the ‘Organ
Transplant’ program. A large number of patients who required
complex medical management have also been treated at the
Neo-natal care is provided to newborns through a
network of skilled health workers
REPORT ON CORPORATE SOCIAL RESPONSIBILITYIntegrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. 173
hospital. Some of these patients required high end equipment
like ECHMO, which are not available in most hospitals.
In addition to providing world class medical services, the
hospital believes that, ‘prevention is better than cure’. This
year alone 7,210 medical screenings have been conducted.
The hospital also organises health awareness & education
programs. This year, the hospital organised 30 community
awareness programs covering over 2,800 people. The hospital
also organised 50 corporate health awareness talks, camps
and school screening camps covering over 4,800 people. As
part of an ongoing Continued Medical Education Programme
(CME) the hospital organised 23 symposiums, workshops and
seminars involving almost 2,400 doctors.
The hospital has provided medical benefits to more than 180
underprivileged individuals, besides providing 9,024 free OPD
consultations, in the last previous year. The services provided to
these needy patients include specialised treatments including
complex Pediatric Cardiac surgeries & Cancer therapies - true to
its core value ‘Respect for Life’.
With a commitment to its fundamental principle ‘Patient First’,
the hospital has taken a number of initiatives to improve the
hospital experience of the patients and their family members.
Their visits to the hospital are substantially reduced by online
availability of reports. Similarly, online registration and
mobile application help find suitable doctors and get online
appointments. An outstation clinic has also been opened in
Surat in order to reach out and provide access to the best
doctors for the patients coming from Gujarat.
The hospital is designed for the highest international quality
standards. It has been awarded “IGBC’s LEED GOLD” certification
for new construction by Indian Green Building Council (IGBC).
DHIRUBHAI AMBANI HOSPITAL
The Dhirubhai Ambani Hospital at Lodhivali near Patalganga,
is an 82-bed state-of-the-art hospital catering to the industrial
and rural population in the Raigad district of Maharashtra. It has
provided free outpatient and subsidised inpatient treatment to
2,211 patients during FY 2016-17. A majority of these patients
include the underprivileged, senior citizens, traumatised victims
from the economically weaker sections of the society. Dhirubhai
Ambani Hospital has one of the largest Anti-Retroviral Therapy
(ART) centre, a major CSR initiative which caters to HIV affected
patients. This ART centre has registered a total of 237 new
persons with HIV AIDS during the reporting period (3,809
persons with HIV AIDS since inception). All these patients have
been provided free consultation, counselling, investigation
and treatment. During this period, 14,621 consultations were
performed at the centre (126,280 consultations since inception).
SPECIALISED CARE FOR HIV AIDS AND
TUBERCULOSIS
Several HIV care services are provided through specialised
hospitals and different interventions including nutritional
support to children, care and support to infected people, IEC
sessions and testing camps for migrant workers, truck drivers
and sex workers etc. Reliance HIV & TB Control Centre at Mora
village, Surat provides diagnostic and curative services to
HIV AIDS patients. More than 3,300 infected patients have
registered for treatment and over 12,000 patients have been
examined in the year 2016-17.
Consecutively for the second year at Hazira ART centre,
marriage bureau was conducted for individuals affected with
HIV. This year, over 230 people participated in this event from
the surrounding communities of Gujarat, Rajasthan, Madhya
Pradesh and Maharashtra.
For care and support of People Living with HIV (PLHIV),
nutritional support has been provided to children infected
with HIV through Reliance HIV & TB Control Centre at Hazira,
Motikhavdi, Medical Centre at Jamnagar and in Gadimoga. This
year, 410 children affected with HIV were provided nutritional
kits besides providing emotional and social care for their
well-being through dedicated projects including HOPE,
Bal Kalyan and Gift.
Through Khushi Clinic at truck parking area, all the truck
drivers are checked for HIV Testing besides these, other
available facilities include examination by doctors, outpatient
management of patients, general awareness and counselling on
health, personal hygiene and de-addiction. About 3,400 truck
drivers got benefitted through these services in the FY 2016-17.
At Jamnagar, the Integrated Counselling and Testing Centre
of MotiKhavdi Medical Centre has catered to 1,367 people this
year.
400+
Care and support provided to
children affected with HIV
CORNEAL TRANSPLANT SURGERIES AND
OTHER EYE CARE SERVICES
Reliance has been supporting visually impaired underprivileged
people for the past 10 years through corneal transplant
surgeries. The programme is partnering with the National
Association for the Blind, Arvind Eye Hospital and Hyderabad
Eye Institute and has supported 1,096 corneal transplants
(15,824 corneal transplants since inception). Under this
programme, a week-long Drishti Art and Essay Competition was
also organised to increase awareness about the importance
of eye donation which involved participation of about 10,000
people this year.
Report on Corporate Social Responsibility02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 174
Through mobile eye clinics and special eye camps, comprehensive
eye care services were provided across different locations
registering over 19,500 people this year. In FY 2016-17, 26 eye
camps were conducted through which about 7,300 individuals
were screened for vision related problems.
15,500 underprivileged underwent corneal
transplants surgeries
TECHNOLOGY IN HEALTHCARE
Reliance and the University of Chicago have entered into a
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 saving many
more lives globally. Through this programme, Reliance aims to
enhance access to quality health care in India.
Reliance implemented a project in Punjab for digitisation of
Primary Health Centres of a block on a pilot basis. Reliance
Jio has developed a health application which was used in this
project. This application includes the Auxiliary Nurse Midwife
(ANM) application used by the ANMs on Tablet, PHC application
used by the doctors, pharmacists or at PHCs on desktop or
laptop. Reliance Foundation’s health team provided on-ground
technical support in training, implementation & go live of the
application to its end users in pilot area to get them acquainted
and efficiently use the applications.
STRENGTHENING OF HEALTH SYSTEM
Reliance is working towards improving the quality of health
care by strengthening the health systems. The programme
initiated its activities by training the sanitary workers across
different departments of Mahatma Gandhi Memorial Hospital
of Warangal district, Telangana on management of bio-medical
waste. The training covered aspects such as infection control
practices and strengthening the systems within the hospital.
Impact of Health Initiatives
Improved availability, accessibility and affordability of
healthcare services
Impact of Health Initiatives
Effective management of non-communicable diseases
Lives of underprivileged communities enlightened
through comprehensive eye-care services
Addressing nutritional deficiencies for building healthy
future
Effective participation of women in improving health
outcomes
Improved health, hygiene and sanitation
EDUCATION
Reliance works on several initiatives towards providing
quality education, training, skill enhancement for improving
the quality of living and livelihood. Reliance’s initiatives in
education are aimed at promoting primary and secondary
education and enabling higher education through merit cum
means scholarships (including specially-abled) across the
country. Reliance promotes higher education by setting up
and supporting universities, skill development and vocational
training.
EDUCATION SCHOLARSHIP PROGRAMMES
Reliance has been providing educational scholarships to
students since 1996. In the 21st year of the Dhirubhai
Ambani Scholarship programme, 437 meritorious students
demonstrating financial needs across India were provided
scholarships to pursue higher education (11,358 scholarships
since inception).
Since inception, through different education scholarship
programmes, Reliance has supported the upliftment of 13,100
meritorious children from poorer socioeconomic background.
ILLUSTRATION: Reliance Dhirubhai Ambani
Protsaham Scheme
Action Taken The Reliance Dhirubhai Ambani Protsaham
Scheme was launched in the academic year 2008-09 in order
to encourage the young, underprivileged and meritorious
students to pursue their intermediate studies. The scheme
facilitates qualifying students to get admissions in colleges of
their choice for pursuing further education.
Saving lives of mothers and children from preventable
maternal deaths
Outcome This year, 91 students benefitted from this scheme
in Andhra Pradesh.
Improved care and support for the people affected by
HIV
REPORT ON CORPORATE SOCIAL RESPONSIBILITYIntegrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital.
175
Reliance is promoting Digital Classrooms to improve the
teaching-learning processes and ensuring quality of education.
This year, Reliance has deployed digital classroom solutions in
100 schools across Andhra Pradesh and Gujarat. SCERT has used
the setup to train more than 800 teachers virtually.
100 Digital classrooms are set up across
in Andhra Pradesh and Gujarat
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.
EDUCATION FOR ALL
With an objective of providing access to quality education to
underprivileged children in India, the Education for All initiative
was launched in 2010 with ardent support from Mumbai
Indians. In 2017, the initiative is supporting twelve partner
NGOs. With an objective to provide virtual learning experience
to underprivileged children, a Digital Learning Van is launched
this year. Since inception, the initiative has positively impacted
the lives of about 1,00,000 underprivileged children.
1 lakh underprivileged children supported
through Education for All initiative
Reliance Foundation Schools
13,100
Provided financial support to over
13,100 meritorious students from poorer
socioeconomic strata
RELIANCE SCHOOLS
A total of 13 Reliance Foundation Schools educating about
15,000 children are located in Jamnagar, Surat, Vadodara, Dahej,
Lodhivali, Nagothane, Nagpur and Navi Mumbai. The schools
offer education right from the kindergarten level to class 12 and
are affiliated to CBSE, Gujarat State Board and Maharashtra State
Board. In 2016, a new Reliance Foundation School providing
pre-primary education was setup in Dahej.
A football tournament was organised between the six schools
in Maharashtra, which received participation from 94 boys in
the under-12 category. The event was designed to build and
strengthen the school football teams and provide a competitive
environment to refine their talent. Besides this, an Art and Craft
competition and exhibition was organised for these schools.
The objective was to provide a platform for young artists to
showcase their talent and to create meaningful conversations
between art learners and educators.
Students of Reliance Foundation Schools continue to excel in
academics, as well as co-scholastic, sporting and co-curricular
pursuits. Most of the schools have reported 100 percent results
in Class X and Class XII examinations, with one school achieving
100 percent distinctions in Class XII science stream. Students
have also won several awards in various events at the district,
state and national levels.
DHIRUBHAI AMBANI INTERNATIONAL
SCHOOL (DAIS),
Mumbai prepares students for the ICSE, the IGCSE and the
IB Diploma examinations. The school is a member of the
Cambridge International Primary Programme. The school
provides world-class education to over 1,000 children and has
150 teachers with rich experience in national and international
curricula. The students have consistently achieved outstanding
results across all three curricula. In 2016, two students topped
the world in Mathematics, one topped the world in Biology
and two students topped in India in other subjects. Over the
years, DAIS has achieved the highest standard of excellence
on all performance parameters. In 2016, Education World
ranked DAIS as the best International school in India for the
fourth consecutive year. DAIS has also been ranked the best
ICSE school in India in the Education World Academic School
Rankings, 2016. The Hindustan Times-C fore School Survey,
2016 ranked DAIS the best school in Mumbai for the fourth
time in five years. DAIS has also been recognised as the best
school in academics in the country, with the conferment of the
‘Excellence in Academics’ award in the NDTV Education Awards
2016.
Report on Corporate Social Responsibility02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 176
PARTNERSHIPS TO ENHANCE EDUCATION
Reliance, in partnership with Eklavya Foundation, implemented
a pilot project reaching out to 1,300 children in 41 villages of
Madhya Pradesh to improve the learning abilities of children
through Shiksha Protsahan Kendras (SPKs). By creating a
positive and conducive learning environment, the programme
addressed the bottlenecks in learning that most of the children
have. An assessment done to review the intervention found
active participation of children in SPKs and demonstrated the
remarkable improvement they had from the programme to be
able to participate effectively in mainstream education.
At Jamnagar, a pilot program was designed to bridge the
deficiency and enhance the proficiency levels in schools.
‘Functional English’ supplementary classes and subjects such
as science and maths are carried out in 3 schools at present,
reaching out to about 1,000 students. The unique aspect of the
project is that a group of 33 lady volunteers (mostly educated
homemakers and spouses of RIL employees) teach in schools
under the guidance of an eminent educationist.
In another education initiative, Reliance supported The Bombay
Community Public Trust’s English E-Teach (EET) project which
aims to improve quality of English of poor children that can
improve their employment opportunities. So far, the EET
initiative has reached about two lakh children in Maharashtra.
CAREER AND INFRASTRUCTURE SUPPORT
FOR EDUCATION
For the betterment of education, Reliance has provided
infrastructure and other support such as seminars to prepare
for board exams, life planning education and career guidance
sessions. This included 40 schools and 1,580 children from rural
marginal households including tribal households. These events
were appreciated by school principals, teachers and all parents,
as they motivate students and encourage them to excel.
School infrastructure such as toilets, libraries, educational kits,
etc. ensure children’s attendance and regularity. To promote
digital literacy in rural areas, 288 computers were donated to
48 schools spread across 29 villages of Jamnagar, Vadodara
and Shahdol. About 6 schools were provided with RO plants to
provide pure drinking water to around 1,100 students. Support
has been extended to three schools to construct toilets which
benefitted 169 students.
With a view to promote the well-being of children and women,
a model Anganwadi Centre was developed at Gadimoga
village in coordination with ICDS Department and UNICEF.
Reliance renovated the existing Panchayat Building as a model
Anganwadi Centre. A nutrition garden was developed behind
the Anganwadi Centre to create awareness among lactating
mothers and pregnant women about the importance of
nutritional food intake.
As a part of improving attendance in Government Schools
and to support the Government efforts in providing quality
education to children attending the schools, Education Kits
were distributed every academic year to around 2,000 students
belonging to 10 Schools in Gadimoga and Bhairavapalem
Panchayats. A similar initiative was undertaken by the Vadodara
Manufacturing division. Basic amenities like floor mats, green
teaching boards for classrooms & sports kits were provided
to primary schools. A total of 22 Primary Schools and 5,945
students were benefited from this initiative.
Launched “Digital Learning Van” to provide access to
digital education to underprivileged children
Impact of Education Initiatives
Addressing inequalities by providing education support
to underprivileged students
Enhanced quality of education and digital literacy
among students
Skill development enabling higher education
opportunities
Development of education infrastructure
Educational programmes provide enhanced access to the
Indian educational system at all levels
REPORT ON CORPORATE SOCIAL RESPONSIBILITYIntegrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital.
177
SPORTS FOR DEVELOPMENT
Reliance promotes health, fitness and an active lifestyle to
bring about a positive change. It seeks to enhance the skills
and development of the youth through sports. Key initiatives of
Reliance are aimed at using sports as a tool for development of
students in both urban and rural settings, encouraging learning
and inculcating leadership among the youth through sports
activities.
RELIANCE FOUNDATION YOUTH SPORTS
Prime Minister Shri Narendra Modi and Minister of Youth Affairs
and Sports Shri Vijay Goel, along with Smt. Nita M. Ambani,
Founder and Chairperson of Reliance Foundation (RF), digitally
linked 8 sports grounds at Kochi, Chennai, Goa, Mumbai,
Delhi, Kolkata, Guwahati and Pune through a live broadcast
in July 2016, to launch the Reliance Foundation Youth Sports
(RFYS) programme. In his interaction with school children,
Shri Narendra Modi urged the nation to ‘Play’ and hailed the
initiative as a unique step towards promoting culture of sports
among youth.
In the inaugural year, RFYS promoted football competitions in
8 cities, for boys and girls separately. RF funded and developed
the sports programmes, and created a talent scouting pool in
all disciplines to provide scholarships to deserving children. The
programme is aimed at promoting sports in more than 50 cities
by 2020 and creating opportunities for youngsters to pursue
sports as a career.
RELIANCE FOUNDATION YOUNG CHAMPS
PROGRAMME
Young Champs is a unique, full scholarship based, full-time
residential football and education programme. It aims to
provide aspiring football talents from across the country the
opportunity to hone their skills with world-class facilities and
best-in-class training. Under the programme, this year, 18
children were awarded scholarships to develop their football
skills making the total scholarships 41. The programme
provided exposure to children and coaches to advanced level
sporting abilities and took them to six international football
academies to compare their standards with the elite youth
footballers across the world. In another initiative to promote
football sports in rural areas, more than 34,500 footballs were
distributed to over 6,520 village schools and youth clubs.
RURAL SPORTS
The rural sports initiative is being implemented in Madhya
Pradesh enrolling over 1,500 children this year (over 4,000
children since inception). The initiative is aimed at empowering
communities to improve education, health, gender equality and
leadership qualities. This programme is run by the community
members where youths volunteer to lead the activities.
4,000
people enhanced the life skills of youth
through rural sports initiative
Honourable Prime Minister Shri Narendra Modi launches
Reliance Foundation Youth Sports programme
Impact of Sports for Development
Initiatives
RELIANCE FOUNDATION JR. NBA
PROGRAMME
The Reliance Foundation Jr. NBA programme is a
comprehensive school-based youth basketball programme. The
first phase of the programme started in 2013 and the second
phase started in 2016. Together the programme has reached
out to about 34 lakh youths across 18 cities in India since
inception. Through this collaborative programme, Reliance
is committed to promote sports among millions of youths
across the country. The programme promotes health, fitness
and an active lifestyle through basketball and teaches values
of life such as teamwork, sacrifice, discipline, dedication and
sportsmanship.
34 lakh Reached out through school-based
basketball programme
Inculcating sports as a medium of development
Development of leadership skills through sports
Skill development of children and youth in building
career in sports
DISASTER RESPONSE
Reliance has a track record of organising timely relief and
rehabilitation of communities that are affected by natural
calamities. Reliance responds in a timely and impactful manner
to the affected areas. Reliance’s initiatives in disaster response
are aimed at capacity building of local communities and
developing expertise and resources to respond to disaster.
DISASTER RELIEF MEASURES-
TECHNOLOGY SUPPORT IN FLOOD RELIEF
In August and September 2016, Reliance, for the first time,
experimented with the potential of technology solutions to
address the aftermath of floods in Madhya Pradesh. The aim
was to disseminate information on several aspects related
Report on Corporate Social Responsibility02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
178
to compensation. This included the details of compensation
available, procedures for availing it etc. It also provided
information on disease management of crops in the post
flood scenario. As a part of this relief measure, 5500 helpline
calls were attended. More than 76,000 individuals were
benefited from 78 different advisories provided through mobile
phones. In addition to this, 21 multi-location audio and video
conferences were organised using Jio’s 4G network.
The direct intervention under flood relief also included disease
prevention measures, distribution of wheat flour, distribution of
gambusia affinis (mosquito fish species), conducting diagnostic
camps for malaria etc. Besides this, Reliance used JioChat to
co-ordinate its relief operations in the Chennai flood relief
operations which involved bringing volunteers drawn from
across businesses.
Successfully implemented technology solutions for
flood affected districts in Madhya Pradesh
MISSION RAHAT - DROUGHT RELIEF IN
MARATHWADA
As the Marathwada region suffered severe water crisis in
the summer of 2016, Reliance swiftly supported the 4 most
distressed districts of the region – Latur, Hingoli, Jalna and
Nanded with drinking water. Reliance distributed over 60
million litres of drinking water to about 2.1 lakh people in 106
villages across these districts. This also helped in reducing
the woes of many local women who had to earlier travel
long distances to fetch water. As a sustainable solution to the
prolonged water crisis, experts from Reliance supported water
development and conservation plans in all these 106 villages
besides seeking implementation support from Government and
other agencies. Additionally, Reliance extended its support in
the rejuvenation of the Sona River by undertaking
de-siltation of the river bed upto 2.5 lakh cubic metre, repairing
3 existing gate structures and construction of a new structure.
A community well comes to the rescue in parched
Jalna, Maharashtra
This intervention created a capacity of 15 lakh cubic metre for
harvesting rainwater in the upcoming monsoon. The project
ensured drinking water security for over 14,000 people living
in and around the block. Additionally, the project assured
irrigation for about 2,500 acres of land in 5 villages around Sona
River.
To bring in synergy in the drought relief effort, Reliance
supported Sawali Trust to implement its Jalyuktashivar Project
in Jalna and Aurangabad districts of Marathwada region. The
project worked towards revival of a river passing through
Pulamary tehsil of Aurangabad district and conducted
excavation of about 8 kilometers aimed at addressing the water
woes of people and livestock in six villages.
2.1 lakh 60 million litres of drinking water to
about 2.1 lakh people
ILLUSTRATION: Steering lives back to safety
Action Taken In November 2015, the ESSO-Indian National
Centre for Ocean Information Services (INCOIS) and the India
Meteorological Department (IMD) issued a joint bulletin with a
cyclone alert in coastal Tamil Nadu warning fisher folk against
venturing into the sea for a day. A fisherman named Keshvan
ventured into the sea to retrieve his boat anchored at the sea
as it was his only source of livelihood. However, by the time
Kesavan started moving the boat into the river, the wind had
grown stronger and a stray rope got caught in the propeller of
the boat, strangling him in the sea.
His efforts to contact his family members failed due to
weak mobile signal. He then managed to contact Reliance
Foundation Information Services (RF-IS). He conveyed the
situation to them. RF-IS immediately informed his family
members who also ventured into the sea to save him.
However, due to strong winds they got stuck too.
Sensing the urgency of the situation, RF-IS quickly arranged
for two sturdy, well-equipped trawlers, and a small team of
fishermen to save them. Kesavan, his 4 family members, and
the two broken boats were finally rescued.
Outcome RF gave timely assistance to Kesavan through its
information services and rescued him and his family members.
REPORT ON CORPORATE SOCIAL RESPONSIBILITYIntegrated Annual Report 2016-17Reliance Industries Limited Life is Beautiful. Life is Digital. Impact of Disaster Response Initiatives
Restoration of lives and communities in and around
disaster-affected areas
Empowerment of disaster-affected communities with
knowledge on relief related services
ARTS, CULTURE AND HERITAGE
Reliance works towards preserving the rich heritage, art and
culture of India for its future generations and makes conscious
efforts to ensure its continuity and enhance avenues for
livelihood of traditional artisans and craftsmen. The Company's
key initiatives are aimed at working towards protecting and
promoting India's arts, culture and heritage through various
promotional and developmental projects and programmes,
supporting preservation of traditional art and handicraft as well
as documenting India's rich heritage for the benefit of future
generations.
ABBAJI ANNUAL CONCERT 2017
Reliance continued support to the annual concert “Abbaji”
organised by Ustad Zakir Hussain. The concert featured
renowned musicians who came together to pay tribute to the
legendary Guru, Ustad Allah Rakha Khan.
ILLUSTRATION: Support towards maintaining
cultural heritage
Action Taken To support the mission of Vadodara Municipal
Corporation, RIL VMD took an initiative for developing and
landscaping the Channi Circle and maintenance of Manjalpur
circle. Vad Sculpture which is renowned as an architectural
structure of Vadodara city was also shifted to Channi Circle by
RIL team.
Outcome Vad Sculpture, a heritage of Vadodara city is being
maintained by RIL.
Impact of Arts, Culture and Heritage
Initiatives
Promotion of arts and culture
Protection of Indian heritage
179
URBAN RENEWAL
Reliance works on city-modernisation initiatives through its
urban renewal programme in order to improve the quality of
life and infrastructure in cities. The initiatives strive to enrich and
improve public spaces to revitalise the ageing infrastructure
and also provide newer facilities.
INFRASTRUCTURE DEVELOPMENT
In collaboration with Government of Gujarat, a cable
suspension bridge “Sudama Setu” is constructed by Reliance
that connects River Gomati and Panchkui area. It is now
facilitating the pilgrims to visit the Panchnad and Panchkui area,
both believed to be dated and associated with the mythological
history “Pandavas”.
ILLUSTRATION: Retail skilling for urban
underprivileged candidates
Action Taken A pool of young talent is being developed by
Reliance in urban areas to take up suitable jobs in retail stores
across different companies.
Outcome So far, over 1,600 individuals from the
underprivileged segments including slums have been trained
through the programme out of which 1,121 people were
employed in retail stores.
FINANCIAL LITERACY TO URBAN WOMEN
For the financial empowerment of urban underprivileged
women, Reliance has implemented its financial literacy
programme aimed at making women living in slums financially
literate and inculcate the habit of savings in them. Till date, the
programme has trained over 7,500 women on aspects related to
financial literacy.
Impact of Urban Renewal Initiatives
Revitalisation of city infrastructure
Infrastructure development in rural and urban areas
Provide clean and safe environment
Sudama setu, Dwarka
Report on Corporate Social Responsibility02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
180
BUSINESS RESPONSIBILITY REPORT
INTRODUCTION
In conformance to the requirements of the clause (f ) of sub-regulation (2) of regulation 34 of Securities and Exchange Board of
India (SEBI) Listing Regulations, the Business Responsibility Report for FY 2016-17 is aligned with the nine principles of the National
Voluntary Guidelines on Social, Environmental & Economic Responsibilities of Business (NVG-SEE) notified by the Ministry of
Corporate Affairs, Government of India.
PRINCIPLES
PRINCIPLE 1
PRINCIPLE 2
PRINCIPLE 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
PRINCIPLE 4
PRINCIPLE 5
PRINCIPLE 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
PRINCIPLE 7
PRINCIPLE 8
PRINCIPLE 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
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 181
ANNEXURE 1
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
Disclosures
Information/Reference sections
Corporate Identity Number (CIN) of the Company
L17110MH1973PLC019786
Name of the Company
Registered Address
Website
E-mail id
Reliance Industries Limited
3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 400 021, India
www.ril.com
investor_relations@ril.com
Financial Year Reported
2016-17
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
Key Products of the Company
Manufactured capital
Page no. 140-141
Number of operational locations and markets served Manufactured capital
Page no. 140-141
Corporate Governance Report
Page no. 218
SECTION B: FINANCIAL DETAILS OF THE COMPANY
Disclosures
Paid up Capital
Total Turnover
Total profit after taxes
Information/Reference sections
`3,251 crore
`2,65,041 crore
`31,425 crore
Total Spending on Corporate Social Responsibility (CSR) as percentage of profit
after tax (%)
2.13%
List of activities in which expenditure in above mentioned disclosures
has been incurred
Report on Corporate Social Responsibility
Page no. 166-167
Business Responsibility Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 182
SECTION C: OTHER DETAILS
Disclosures
Information/Reference sections
Participation of Subsidiary companies or
any other entities in RIL’s BR initiatives.
The number of RIL’s subsidiary companies as on 31st March,
2017 is 94. RIL undertakes various Business Responsibility
(BR) initiatives throughout the year and encourages its
subsidiary companies to participate in its group-wide BR
initiatives on several topics. All subsidiaries are aligned
with the Group’s CSR agenda and philosophy which gets
implemented through the Reliance Foundation. During
FY 2016-17, RIL's operating subsidiaries and associates
like Reliance Retail Limited , Reliance Corporate IT Park
Limited etc. participated in various initiatives across several
areas which includes promotion of health care, promoting
education, cleanliness drives, rural development etc.
As part of its BR initiatives, RIL collaborates with relevant
stakeholders like suppliers, distributors, local communities,
government and other entities in the value chain.
SECTION D: BR INFORMATION
Disclosures
Information/Reference sections
1. DETAILS OF DIRECTOR/DIRECTORS RESPONSIBLE FOR BR
a. Details of the Director/ Directors responsible
for implementation of the BR policy/policies
DIN Number
Name
Designation
b. Details of the BR head
DIN Number (if applicable)
Name
Designation
Telephone number
E-mail ID
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:
Name
Shri Yogendra P. Trivedi
(Chairman)
Shri Nikhil R. Meswani
Dr. Dharam Vir Kapur
Dr. Raghunath A. Mashelkar
DIN Number
00001879
00001620
00001982
00074119
Details of the BR head
Particulars
DIN Number (if applicable)
Name
Designation
Telephone Number
E-mail ID
Designation
Independent Director
Executive Director
Independent Director
Independent Director
Details
00001879
Shri Yogendra P. Trivedi
Independent Director
022 – 2284 2463
trivedi_yogendra@yahoo.co.in
2. GOVERNANCE RELATED TO BR
Frequency of assessing BRR performance
Frequency of publishing a Sustainability Report
and hyperlink for the same
RIL assesses its BRR performance annually.
RIL publishes Sustainability Report annually. Hyperlink for the report-
http://www.ril.com/Sustainability/CorporateSustainability.aspx
Reliance Industries Limited Life is Beautiful. Life is Digital.BUSINESS RESPONSIBILITY REPORTIntegrated Annual Report 2016-17 183
ANNEXURE 2 – DETAILS OF COMPLIANCE
PRINCIPLE-WISE AS PER NATIONAL VOLUNTARY GUIDELINES (NVGs) BR
POLICY/POLICIES (REPLY IN Y/N)
1
2
3
4
5
6
7
8
9
Sl.
No.
Questions
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 the Company have a specified committee of the Board/
Director/Official to oversee the implementation of the
policy?
Indicate the link to view the policy online
Has the policy been formally communicated to all relevant
internal and external stakeholders?
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 NOTE* for web link of policies and Annexure 3 for linkages of
these policies with NVG principles.
The policies have been communicated
internal
stakeholders. The BR policies are communicated through this report. Be-
sides, the Company continues to explore other formal channels to com-
municate more with relevant stakeholders.
to RIL’s key
Does the Company have in-house structure to implement its
policy/policies?
Yes, the CSR&G Committee of the Board of Directors is responsible for
the implementation of RIL’s policies.
Does the Company have a grievance redressal mechanism
related to the policy/policies to address stakeholders’
grievances related to policy/policies?
Yes, any grievance or feedback related to the policies can be sent to
investor_relations@ril.com. CSR&G Committee of the Board of Directors
is responsible for addressing stakeholder concerns related to BR policies.
10
Has the Company carried out independent audit/evaluation
of the working of this policy by an internal or external
agency?
The BR policy is evaluated internally. Policies pertaining to health, safety
and environment have been audited externally by DNV.
Note*:
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/getattachment/d5fd70ef-e019-47e5-bb83-de2077874505/Corporate-Social-Responsibility-Policy.aspx
4. Our Code:
http://www.ril.com/getattachment/ee7b0fc7-e62e-4132-a69d-2f52f82e605b/Our-Code.aspx
5. Code of Conduct:
http://www.ril.com/getattachment/3724d19a-8a2b-4a6e-898a-a5c7f01aaf01/Code-of- Conduct.aspx
6. Values & Behaviours:
http://www.ril.com/getattachment/04fad041-a37a-42f8-85f8-6ed19be58602/Values-and-Behaviours.aspx
Business Responsibility Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
184
ANNEXURE 3
LINKAGE OF POLICIES OF RIL WITH BR PRINCIPLES AS PER NVG
Principle
No.
1
Reference Document
NVG Principle
Code of Conduct
Ethics, Transparency and
Accountability
Reference Section
Section 2, 3, 5 and 7
2
3
4
5
6
7
8
9
Values and Behaviours
Customer Value
Products life cycle sustainability Code of Conduct
Our Code
Section 3
Section 6
Values and Behaviours
Customer Value
Corporate Social Responsibility Policy
Section 3
Health, Safety & Environment Policy
Please refer page number 183 for web link
Employees' well-being
Code of Conduct
Stakeholder engagement
Code of Conduct
Values and Behaviours
Our Code
Section 3, 4, 6 and 8
Excellence Value
Section 5 and 6
Section 5
Human rights
Environment
Policy advocacy
Inclusive growth
Corporate Social Responsibility Policy
Section 3
Code of Conduct
Our Code
Corporate Social Responsibility Policy
Section 6 and 8
Section 5
Section 3
Environment Policy
Code of Conduct
Our Code
Please refer page number 183 for web link
Section 5 and 6
Section 5
Health, Safety & Environment Policy
Please refer page number 183 for web link
Corporate Social Responsibility Policy
Section 3
Customer value
Values and Behaviours
Our Code
Code of Conduct
Customer Value
Section 2 and 5
Section 5
Corporate Social Responsibility Policy
Section 3
Reliance Industries Limited Life is Beautiful. Life is Digital.BUSINESS RESPONSIBILITY REPORTIntegrated Annual Report 2016-17 185
ANNEXURE 4
SECTION E: PRINCIPLE-WISE PERFORMANCE
PRINCIPLE 1: ETHICS, TRANSPARENCY AND ACCOUNTABILITY
Disclosures
Information/Reference sections
Coverage of Code of Conduct policy and details of stakeholder
complaints received and resolved in FY 2016-17.
Human capital
Page no. 125-126
Corporate Governance Report
Page no. 197-198
For Investor grievances please refer to
Corporate Governance Report
Report Page no. 207
During FY 2016-17, 2,005 customer grievances were received, of
which 1,940 were successfully resolved by 31st March, 2017. Sub-
sequently, most of these complaints have been resolved.
PRINCIPLE 2: PRODUCTS LIFE CYCLE SUSTAINABILITY
Disclosures
Information/Reference sections
Products and services incorporating environmental and social risks
Recycled products and waste
Manufactured capital
Page no. 140-141
Natural capital
Page no. 117-120
Procedures for sustainable sourcing and procuring goods and services
from small and local vendors
Social and Relationship capital
Page no. 146
PRINCIPLE 3: EMPLOYEES' WELL-BEING
Disclosures
Information/Reference sections
Total workforce by various indicators of diversity (e.g. gender, physical
disability, contract type etc.) and efforts for their skill enhancement
At RIL, 84.42% of its permanent employees received safety and
skill up-gradation trainings during the year, while 83.18% of the
women employees received trainings through classroom, as well
as web-based training programmes. Out of 71 permanent employ-
ees with disabilities, 39.24 % received safety and skill up-gradation
trainings. All the employees of RIL participate in safety related
training and activities.
Workforce representation and grievance redressal
Human capital
Page no. 122-127
Human capital
Page no. 126
PRINCIPLE 4: STAKEHOLDER ENGAGEMENT
Disclosures
Information/Reference sections
Identification and engagement with stakeholders including the
vulnerable and marginalised groups
Report on Corporate Social Responsibility
Page no. 164-179
Social and Relationship capital
Page no. 145
Business Responsibility Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 186
PRINCIPLE 5: HUMAN RIGHTS
Disclosures
Information/Reference sections
Company’s policy and practices for addressing human rights concerns Human capital
Page no. 125-126
PRINCIPLE 6: ENVIRONMENT
Disclosures
Company’s policies and practices for environmental protection
including use of clean technologies, resource conservation and
climate change adaptation and mitigation
Ensuring compliance to environmental regulations
PRINCIPLE 7: POLICY ADVOCACY
Disclosures
Responsible policy advocacy in collaboration with policymakers
Information/Reference sections
Natural capital
Page no. 114-120
Board's Report
Page no. 246-248
Natural capital
Page no. 120
Information/Reference sections
Social and Relationship capital
Page no. 148
PRINCIPLE 8: INCLUSIVE GROWTH
Disclosures
Details of the Company’s community development initiatives
including financial contribution and ensuring long term sustainability
of projects
Information/Reference sections
Report on Corporate Social Responsibility
Page no. 165-179
Social and Relationship capital
Page no. 148-149
Board's Report
Page no. 233-241
In FY 2016-17, RIL has spent `659 crore on community
development initiatives.
PRINCIPLE 9: CUSTOMER VALUE
Disclosures
Information/Reference sections
Ensuring customer satisfaction while conforming to regulatory
requirements
Social and Relationship capital
Page no. 146
For customer complaints refer Business Responsibility Report
Principle 1: Ethics, Transparency and Accountability
Page no. 185
Reliance Industries Limited Life is Beautiful. Life is Digital.BUSINESS RESPONSIBILITY REPORTIntegrated Annual Report 2016-17 187
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
Sustainable
Development
Goals
1. NO POVERTY
Business
Responsibility
Report
NVG8
End poverty in all its forms everywhere
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
Management’s
Discussion and
Analysis
Corporate
Social
Responsibility
Reference of
Illustrations
Social and
Relationship
Capital
Social and
Relationship
Capital
Enhanced income and livelihood
among rural marginal farmers
Increased employment
opportunities in rural and urban
areas for adults and youths
Improved quality of life
Transition from a contract
labourer to a self-sustained
farmer (Page no. 171)
Touching and transforming lives
of marginalised communities
(Page no. 78)
Construction of structures for
Mission Zero Malnourishment
project (Page no. 172)
Transition from a contract
labourer to a self-sustained
farmer (Page no. 171)
Plasticulture (Page no. 78)
rainwater harvesting
Improved food security
Improved nutrition security
Eradication of hunger and
malnutrition
Sustainable agricultural
production
Creating value chain for
agricultural produce
3. GOOD HEALTH
AND WELL-BEING
NVG3
Human
Capital
Ensure healthy lives and promote
well-being for all at all ages
Businesses should
promote the well-being of
all employees
4. QUALITY
EDUCATION
NVG8
Ensure inclusive and equitable quality
education and promote lifelong learning
opportunities for all
Businesses should support
inclusive growth and
equitable development
Human
Capital
Social and
Relationship
Capital
Improved availability, accessibility
and affordability of healthcare
services
Saving lives of mothers and
children
Improved care and support for
the people affected by HIV
Effective management of
non-communicable diseases
Lives of underprivileged
communities enlightened
through comprehensive eye-care
services
Addressing nutritional
deficiencies for building healthy
future
Addressing inequalities by
providing support to students from
poorer socioeconomic background
Enhanced quality of education and
digital literacy
Skill development for better
education opportunities
Sports for development
Mission Zero Malnourishment
project (Page no. 172)
Monitoring Reliance Employee
Health index (Page no. 124)
Elimination of safety hazard
through process modification
(Page no. 125)
Promoting Safety & Operational
Risk culture amongst contract
workforce (Page no. 82)
Empowering women to emerge as
a role model (Page no. 171)
Reliance Dhirubhai Ambani
Protsaham scheme (Page no. 174 )
Business Responsibility Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
188
Sustainable
Development
Goals
5. GENDER EQUALITY
Business
Responsibility
Report
NVG5
Achieve gender equality and empower all
women and girls
Businesses should respect
and promote human rights
6. CLEAN WATER AND
NVG6
SANITATION
Ensure availability and sustainable
management of water and sanitation
for all
7. AFFORDABLE AND
CLEAN ENERGY
Ensure access to affordable, reliable,
sustainable and modern energy for all
Businesses should
respect, protect and make
efforts to restore the
environment
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
Management’s
Discussion and
Analysis
Corporate
Social
Responsibility
Reference of
Illustrations
Human
Capital
Natural
Capital
Social and
Relationship
Capital
Gender equality and women
empowerment
Effective participation of women
in development process
Participation of women in village
decision making body
Contribution to Swachh Bharat
Abhiyan
Water security
Conservation of water through
rain water harvesting
Improved sanitation through
construction of toilets
Cleaner villages
Natural
Capital
Manufactured
Capital
Intellectual
Capital
Sustainable energy
Renewable energy
Biogas units
Ecological balance
Conservation of natural resources
Empowering women to emerge
as a role model (Page no. 171)
Empowering women on financial
management and decision
making (Page no. 170)
Enhanced recycling through
advanced water treatment
technologies (Page no. 117)
Retrofit of Energy Efficient
Equipment (Page no. 116)
Enhancing Energy Efficiency
beyond Designed Specifications
(Page no. 115)
Throughput Enhancement
through Retrofitting
(Page no. 119)
8. DECENT WORK AND
ECONOMIC GROWTH
NVG3
Promote sustained, inclusive and
sustainable economic growth, full and
productive employment and decent work
for all
Businesses should
promote the well-being of
all employees
Financial
Capital
Human
Capital
Leveraging knowledge
Skill development for youth
Technological Innovation
Increased employment
opportunities in rural and urban
areas for adults and youths
Financial security for women
Enhancing recovery in E&P
(Page no. 135)
Petro Retail’s turnaround after
Demonetisation Setback
(Page no. 69)
Enhancing Vinyl Chloride
Monomer (VCM) through resource
optimisation beyond original
design standards (Page no. 117)
Creating value out of waste
(Page no. 117)
Reducing material intensity
through 100% recycled products
(Page no. 119)
Process modification beyond
design for reduced chemical
consumption (Page no. 119)
Relwood™ – Innovating Sustainable
Product development for wood
replacement (Page no. 77)
Production Performance
Sustenance (Page no. 84)
Reliance Industries Limited Life is Beautiful. Life is Digital.BUSINESS RESPONSIBILITY REPORTIntegrated Annual Report 2016-17
189
Management’s
Discussion and
Analysis
Corporate
Social
Responsibility
Reference of
Illustrations
Sustainable
Development
Goals
8. DECENT WORK AND
ECONOMIC GROWTH
Business
Responsibility
Report
NVG3
Promote sustained, inclusive and
sustainable economic growth, full and
productive employment and decent work
for all
Businesses should
promote the well-being of
all employees
9. INDUSTRY,
INNOVATION AND
INFRASTRUCTURE
NVG6
Build resilient infrastructure, promote
sustainable industrialisation and foster
innovation
Businesses should
respect, protect and make
efforts to restore the
environment
Financial
Capital
Human
Capital
Leveraging knowledge
Skill development for youth
Technological Innovation
Increased employment
opportunities in rural and urban
areas for adults and youths
Financial security for women
Set up village knowledge centres
Education through technology
Access to information
Infrastructure development in
rural and urban areas
Manufactured
Capital
Intellectual
Capital
Social and
Relationship
Capital
Empowering women to emerge as
a role model (Page no. 171)
Retail skilling for urban
underprivileged candidates
(Page no. 179)
Empowering women on financial
management and decision making
(Page no. 170)
Ultimate Pitch-Collaborating with
30 leading B-Schools (Page no. 124)
Driverless GST and GST for millions
(Page no. 148)
Reduced HSE risks through CASHe
(Page no. 125)
Innovation in Machinery Repair
(Page no. 135)
Plasticulture (Page no. 78)
Mitigation of Cathodic Protection
(CP) discontinuity in subsea facility
(Page no. 82)
Optimisation of Artificial lift
system, used for water lifting in
Coal Bed Methane (CBM) wells
(Page no. 85)
Creation of a world class video
entertainment OTT platform
(Page no. 107)
Reducing separation cycle time
(Page no. 132)
Partnering for innovation
(Page no. 133)
Facilities optimisation for ethane
pipeline project (Page no. 141)
Monitoring Equipment Health
through SmartSignal
(Page no. 138)
Digitisation of Equipment
Inspection (Page no. 140)
Enabling innovations-Mission
Kurukshetra (Page no. 135)
Empowering women to emerge
as a role model (Page no. 171)
Retail skilling for urban
underprivileged candidates
(Page no. 179)
Empowering women on financial
management and decision
making (Page no. 170)
10. REDUCED
INEQUALITIES
NVG5
Human
Capital
Reduce inequality within and among
countries
Businesses should respect
and promote human
rights
Women empowerment
Education for the underprivileged
and the specially-abled
Support for the specially-abled
Empowement of the
underprivileged
Business Responsibility Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
190
Sustainable
Development
Goals
11. SUSTAINABLE
CITIES AND
COMMUNITIES
Make cities and human settlement
inclusive, safe, resilient and sustainable
Business
Responsibility
Report
NVG9
Businesses should
engage with and provide
value to their customers
and consumers in a
responsible manner
Management’s
Discussion and
Analysis
Corporate
Social
Responsibility
Reference of
Illustrations
Social and
Relationship
Capital
Promotion of arts and culture
Protection of Indian heritage
Infrastructure development in
urban areas
Revitalisation of city infrastructure
Support towards maintaining
cultural heritage (Page no. 179)
Tree plantation
Sustainable production
Innovation
Energy conservation
Enhancing Vinyl Chloride
Monomer (VCM) through
resource optimisation
(Page no. 117)
Creating value out of waste
12. RESPONSIBLE
CONSUMPTION
AND PRODUCTION
Ensure sustainable consumption and
production patterns
NVG2
Manufactured
Capital
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
13. CLIMATE ACTION
NVG6
Natural
Capital
Tree plantation
Climate change
Take urgent actions to combat climate
change and its impacts*
* Acknowledging that the United Nations Framework
Convention on Climate Change is the primary
international, intergovernmental forum for negotiating
the global response to climate change.
Businesses should
respect, protect and make
efforts to restore the
environment
Timely relief and rehabilitation to
communities affected by natural
calamities
Disaster-struck lives rescued
14. LIFE BELOW WATER
NVG6
Natural
Capital
Water Security
Information services protecting
fisher folks from adverse sea
conditions (Page no. 170)
Conserve and sustainably use the oceans,
seas and marine resources for sustainable
development
Businesses should
respect, protect and make
efforts to restore the
environment
(Page no. 117)
Reducing material intensity
through 100% recycled products
(Page no. 119)
Process modification beyond
design for reduced chemical
consumption (Page no. 119)
Relwood™ – Innovating
Sustainable Product development
for wood replacement
(Page no. 77)
Production Performance
Sustenance (Page no. 84)
To keep wells flowing through
enhanced subsea network
performance (Page no. 84)
Steering lives back to safety
(Page no. 178)
Process modifications beyond
original design (Page no. 116)
Reliance Industries Limited Life is Beautiful. Life is Digital.BUSINESS RESPONSIBILITY REPORTIntegrated Annual Report 2016-17
191
Sustainable
Development
Goals
15. LIFE ON LAND
Business
Responsibility
Report
NVG6
Management’s
Discussion and
Analysis
Corporate
Social
Responsibility
Reference of
Illustrations
Natural
Capital
Tree plantation
Soil conservation
Enhancement of biodiversity
Protect, restore and promote sustainable
use of terrestrial ecosystems, sustainably
manage forests, combat desertification,
and halt and reverse land degradation and
halt biodiversity loss
Businesses should
respect, protect and make
efforts to restore the
environment
16. PEACE, JUSTICE
AND STRONG
INSTITUTIONS
NVG1
Social and
Relationship
Capital
Promote peaceful and inclusive societies
for sustainable development, provide
access to justice for all and build effective,
accountable and inclusive institutions at
all levels
Businesses should conduct
and govern themselves
with Ethics, Transparency
and Accountability
Formation of producer companies
for sustainable livelihood
Women empowerment by
forming thrift groups
Promote peaceful and inclusive
societies for long term sustainable
development
Integrating Values and Behaviours
(V&B) (Page no. 122)
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
17. PARTNERSHIPS
FOR THE GOALS
Strengthen the means of implementation
and revitalise the global partnership for
sustainable development
Social and
Relationship
Capital
Partnership with like-minded
organisations including
government and
non-government organsations,
technical agencies etc.
New Distribution Model for Lubes
Business (Relstar) (Page no. 67)
Ultimate Pitch-Collaborating with
30 leading B-Schools
(Page no. 124)
Partnering for Innovation
(Page no. 133)
http://www.undp.org/content/dam/undp/library/corporate/brochure/SDGs_Booklet_Web_En.pdf
Business Responsibility Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
192
GRI CONTENT INDEX
Reliance has adopted the GRI Standards which are the first global standards for Sustainability reporting. The GRI Content index
depicts the linkage of the content in the Annual report with the GRI standard disclosures.
GRI Standard
GRI 101: Foundation 2016
General Disclosure
GRI 102: General Disclosures 2016
Organisational profile
Strategy
Ethics and integrity
Governance
Stakeholder engagement
Reporting practice
Material Topics
Health and Safety
GRI 103: Management Approach 2016
GRI 403: Occupational Health and Safety 2016
Raw Material Security
GRI 103: Management Approach 2016
GRI 301: Materials 2016
Fuel Security*
Managing Environmental Impact
GRI 103: Management Approach 2016
GRI 303: Water 2016
GRI 304: Biodiversity 2016
GRI 305: Emissions 2016
GRI 306: Effluents and Waste 2016
GRI 307: Environmental Compliance 2016
Energy efficiency of operations & Carbon abatement and offset-
ting
GRI 103: Management Approach 2016
GRI 302: Energy 2016
GRI 305: Emissions 2016
Customer Satisfaction
GRI 103: Management Approach 2016
GRI 416: Customer Health and Safety 2016
GRI 417: Marketing and Labeling 2016
Supply Chain Management
GRI 103: Management Approach 2016
GRI 204: Procurement Practices 2016
Location of Disclosure & Page Number
Reliance at a Glance(Page no. 2-3)
Business Model- Value Creation (Page no. 24)
Human Capital (Page no. 125-126)
Corporate Governance Report (Page no. 196-223)
Stakeholder Engagement (Page no. 145)
Reliance's Sustainability Reporting Journey (Page 151-152)
Corporate Governance Report (Page 198-199)
Human Capital (Page no. 124-125)
Human Capital (Page no. 124-125)
Natural Capital (Page no. 118-120)
Natural Capital (Page no. 118-120)
Natural Capital (Page no. 118-120)
Natural Capital (Page no. 114-120)
Natural Capital (Page no. 116-117, 120)
Natural Capital (Page no. 118,120)
Natural Capital (Page no. 114-115)
Natural Capital (Page no. 117)
Natural Capital (Page no. 114-115, 120)
Natural Capital (Page no. 114-115, 120)
Natural Capital (Page no. 114-115,120)
Board's Report Annexure VI (Page no. 246-250)
Natural Capital (Page no. 114-115)
Social and Relationship Capital (Page no. 146)
Social and Relationship Capital (Page no. 146)
Social and Relationship Capital (Page no. 146)
Social and Relationship capital (Page no. 146)
Social and Relationship capital (Page no. 146)
Reliance Industries Limited Life is Beautiful. Life is Digital.BUSINESS RESPONSIBILITY REPORTIntegrated Annual Report 2016-17 193
GRI Standard
GRI 408: Child Labor 2016
GRI 409: Forced or Compulsory Labor 2016
GRI 412: Human Rights Assessment 2016
Community Development
GRI 103: Management Approach 2016
GRI 203: Indirect Economic Impacts 2016
GRI 413: Local Communities 2016
Ethics, Integrity and Compliance
GRI 103: Management Approach 2016
GRI 205: Anti-corruption 2016
GRI 419: Socioeconomic Compliance 2016
Talent Attraction and Retention
GRI 103: Management Approach 2016
GRI 401: Employment 2016
GRI 402: Labor/Management Relations 2016
GRI 404: Training and Education 2016
GRI 405: Diversity and Equal Opportunity 2016
Economic Performance
GRI 103: Management Approach 2016
GRI 201: Economic Performance 2016
Asset Utilisation and Reliable Operations*
GRI 103: Management Approach 2016
Security and Asset Protection*
GRI 103: Management Approach 2016
For Sustainability Report please visit www.ril.com.
* Non GRI aspect
Location of Disclosure & Page Number
Human capital (Page no. 126)
Social and Relationship Capital (Page no. 146)
Human capital (Page no. 126)
Social and Relationship Capital (Page no. 146)
Human capital (Page no. 126)
Social and Relationship Capital (Page no. 146)
Social and Relationship capital (Page no. 148-149)
Corporate Social Responsibility (Page no. 164-179)
Social and Relationship capital (Page no. 148-149)
Corporate Social Responsibility (Page no. 164-179)
Social and Relationship capital (Page no. 148-149)
Corporate Social Responsibility (Page no. 164-179)
Human capital (Page no. 125-126)
Human capital (Page no. 125-126)
Human capital (Page no. 125-126)
Board's Report- Annexure III (Page no. 233-241)
Human capital (Page no. 121-127)
Human capital (Page no. 122)
Human capital (Page no. 122)
Human capital (Page no. 122)
Human capital (Page no. 123)
Financial capital (Page no. 144)
Financial Highlights (Page no. 56)
Financial capital (Page no. 144)
Financial Highlights (Page no. 56)
Intellectual capital (Page no. 128-136)
Manufactured capital (Page no. 137-143)
Business Responsibility Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 194
INDEPENDENT REASONABLE ASSURANCE
STATEMENT TO RELIANCE INDUSTRIES LIMITED
ON THEIR SUSTAINABILITY DISCLOSURES IN THE
INTEGRATED ANNUAL REPORT FOR FINANCIAL YEAR
2016-17
To the Management of Reliance Industries Limited, 3rd Floor,
Maker Chambers IV, 222, Nariman Point, Mumbai 400 021,
Maharashtra, India.
INTRODUCTION
We (‘KPMG in India’, or ‘KPMG’) have been engaged for
the purpose of providing assurance on the Sustainability
disclosures presented in the Integrated Annual Report ('the
Report') of Reliance Industries Limited (‘RIL’ or ‘the Company’)
for FY 2016-17 (‘the Report’). Our responsibility was to provide
reasonable assurance on the Report content as described in
the boundary, scope and limitations, as part of the Company’s
sustainability reporting assurance process.
REPORTING CRITERIA
RIL has developed its report based on the applicable
accounting standards and has incorporated the principles of the
International Integrated Reporting Framework () published
by the International Integrated Reporting Council (IIRC) into the
Management’s Discussion and Analysis section of the Report.
Its sustainability performance reporting criteria has been
derived from the GRI Standards of the Global Reporting
Initiative including the oil and gas sector disclosure, API/
IPIECA guidelines, UNGC principles, United Nations’ Sustainable
Development Goals (UN SDGs), WBCSD focus areas, reporting
principles of Accountability’s AA1000APS (Principles of
Inclusivity, Materiality and Responsiveness) and National
Voluntary Guidelines on Social Economic and Environmental
Responsibilities of Business.
ASSURANCE STANDARDS
We conducted the assurance in accordance with
Reasonable Assurance requirements of International
Federation of Accountants’ (IFAC) International Standard on
Assurance Engagement (ISAE) 3000 (Revised) Assurance
Engagements Other than Audits or Reviews of Historical
Financial Information,
Under this standard, we have reviewed the information
presented in the report against the characteristics of
relevance, completeness, reliability, neutrality and
understandability.
BOUNDARY, SCOPE AND LIMITATIONS
The boundary of assurance covers the sustainability
performance of RIL’s manufacturing divisions, refineries,
exploration and production in India; business divisions
such as chemicals; fibre intermediates; petroleum;
polyester; polymers; Reliance Foundation and corporate
office at Reliance Corporate Park, for the period 1st April,
2016 to 31st March, 2017.
The assurance process was limited to the sustainability
disclosures in Business Responsibility Report,
Management’s Discussion and Analysis, Board’s Report and
Corporate Social Responsibility Report.
The sustainability parameters covered as part of the
scope of the assurance process included water recycled,
Employee strength of RIL, Manhours of training provided to
RIL’s workforce.
The assurance scope excludes;
Aspects of the report other than those mentioned
above;
Data and information outside the defined reporting
period;
The Company’s statements that describe expression
of opinion, belief, aspiration, expectation, aim or
future intention and assertions related to Intellectual
Property Rights and other competitive issues;
ASSURANCE PROCEDURES
Our assurance process involves performing procedures to
obtain evidence about the reliability of specified disclosures.
The nature, timing and extent of procedures selected
depend on our judgment, including the assessment of the
risks of material misstatement of the selected sustainability
disclosures whether due to fraud or error. In making those risk
assessments, we have considered internal controls relevant
to the preparation of the Report in order to design assurance
procedures that are appropriate in the circumstances.
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
Independent Reasonable Assurance
on Sustainability Disclosures
195
OUR ASSURANCE PROCEDURES ALSO
INCLUDED:
Assessment of RIL’s reporting procedures regarding their
consistency with the application of GRI Standards
Evaluating the appropriateness of the quantification
methods used to arrive at the sustainability disclosures
presented in the Report.
Verification of systems and procedures used for
quantification, collation, and analysis of sustainability
disclosures included in the Report.
Understanding the appropriateness of various
assumptions, estimations and materiality thresholds used
by RIL for data analysis.
Discussions with the personnel responsible for the
evaluation of competence required to ensure reliability of
data and information presented in the Report.
Discussion on sustainability aspects with senior executives
at the different plant locations and at the corporate
office to understand the risks and opportunities from
sustainability context and the strategy RIL is following.
Assessment of the stakeholder engagement process
through personal interviews and review of relevant
documentation.
Assessment of data reliability and accuracy.
For verifying the data and information related to RIL’s
financial performance we have relied on its audited
Financial Statements for the FY 2016-17.
Verification of disclosures through site visits to
Manufacturing units at Barabanki, Dahej, Hazira,
Hoshiarpur, Jamnagar DTA, Jamnagar SEZ, Nagothane,
Naroda, Patalganga, Silvassa and Vadodara; On-shore
and off-shore exploration and production facilities at
Gadimoga; Corporate office at Reliance Corporate Park,
Navi Mumbai and review of key performance data from
Shahdol.
The sustainability disclosures are in alignment with the GRI
standards.
INDEPENDENCE
The assurance was conducted by a multidisciplinary team
including professionals with suitable skills and experience in
auditing environmental, social and economic information in
line with the requirements of ISAE 3000 (Revised) standard.
Our work was performed in compliance with the requirements
of the IFAC Code of Ethics for Professional Accountants, which
requires, among other requirements, that the members of
the assurance team (practitioners) as well as the assurance
firm (assurance provider) be independent of the assurance
client, in relation to the scope of this assurance engagement,
including not being involved in writing the Report. The Code
also includes detailed requirements for practitioners regarding
integrity, objectivity, professional competence and due care,
confidentiality and professional behaviour. KPMG has systems
and processes in place to monitor compliance with the Code
and to prevent conflicts regarding independence. The firm
applies ISQC 1 and the practitioner complies with the applicable
independence and other ethical requirements of the IESBA
code.
RESPONSIBILITIES
RIL is responsible for developing the Report contents. RIL is
also responsible for identification of material sustainability
issues, establishing and maintaining appropriate performance
management and internal control systems and derivation of
performance data reported. This statement is made solely to
the Management of RIL in accordance with the terms of our
engagement and as per scope of assurance. Our work has been
undertaken so that we might state to RIL those matters for
which we have been engaged to state in this statement and for
no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than RIL for
our work, for this report, or for the conclusions expressed in this
independent assurance statement. The assurance engagement
is based on the assumption that the data and information
provided to us is complete and true. We expressly disclaim any
liability or co-responsibility for any decision a person or entity
would make based on this assurance statement.
Appropriate documentary evidence was obtained to support
our conclusions on the information and data verified. Where
such documentary evidence could not be collected due to
sensitive nature of the information, our team verified the same
at the company premises.
CONCLUSIONS
Based on our assurance procedures and in line with the
boundary, scope and limitations, we conclude that
The selected sustainability parameters and disclosures
presented in the Report by RIL are fairly represented.
Santhosh Jayaram
Partner
KPMG India
June 14, 2017
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
196
CORPORATE GOVERNANCE REPORT
At RIL, Corporate Governance is an ethically driven business process that is committed to values,
aimed at enhancing its brand and reputation. This is demonstrated in shareholder returns, high
credit ratings, governance processes and performance with conducive work environment. RIL has
laid a strong foundation for making Corporate Governance a way of life by having a mix of persons
of eminence and integrity at Board and leadership levels, including competent professionals across
the organisation and putting in place best systems, processes and technology.
K. SETHURAMAN
“Between my past, the present and
the future, there is one common
factor: Relationship and Trust. This
is the foundation of our growth.”
Founder Chairman
Shri Dhirubhai H. Ambani
In accordance with 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.
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 for four eventful
decades 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.
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 197
On standalone basis, we have grown by a Compounded Annual
Growth Rate (CAGR) of Revenues 23.6%, EBITDA 25.6% and Net
Profit 26.9%. The financial markets have endorsed our sterling
performance and the market capitalisation has increased by
CAGR of 31.5% 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 2.5 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 and is 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. 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, 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 Human Resources,
Nomination and Remuneration Committee to plan the Board
and committees’ composition, induction of directors to the
Board, plan for director succession, participate in the Board
effectiveness evaluation process and meet the 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 committees. These guidelines
seek to systematise the decision-making process at the
meetings of the Board and 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
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
198
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
Dividend Distribution Policy
AUDITS AND INTERNAL CHECKS AND
BALANCES
S R B C & CO LLP, Chartered Accountants and D T S & Associates,
Chartered Accountants, are proposed as Auditors of the
Company, for a term of 5 (five) consecutive years, subject
to ratification of appointment by the members at the every
Annual General Meeting to be held after the ensuing Annual
General Meeting. 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 Company’s all businesses 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,
implementation and operating effectiveness.
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 internal audit is also conducted by
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.
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
RIL commenced annual reporting of its triple-bottom-line
performance from the financial year (FY) 2004-05. All its
sustainability reports are assured externally. The maiden report
in FY 2004-05, was based on then prevalent GRI G2 guidelines,
received ‘in-accordance’ status from GRI. The subsequent
reports from FY 2006-07 to FY 2010-11 were based on ‘GRI
G3’ guidelines and GRI Checked with an ‘A+’ application
level. From FY 2006-07, in addition to GRI G3 Sustainability
Reporting Guidelines, RIL referred to the American Petroleum
Institute / The International Petroleum Industry Environmental
Conservation Association (API/IPIECA), Sustainability
Reporting Guidelines and the United Nations Global Compact
(UNGC) Principles. From FY 2006-07, RIL has also aligned
its sustainability activities with the focus areas of the World
Business Council for Sustainable Development. From FY 2011-
12, RIL adopted the newly published GRI G3.1 guidelines and
in addition referred to GRI G3.1 – Oil & Gas Sector Supplement.
In the same year, RIL also aligned its sustainability report with
the National Voluntary Guidelines on Social, Environmental
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17
199
and Economic Responsibilities of Business framed by the
Government of India. RIL was among the first to adopt GRI’s G4
Guidelines from FY 2014-15 and 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. Since October 2016, the GRI G4 guidelines have
transitioned to GRI Standards. The GRI standards are the first
global standards for sustainability reporting. In the current year,
RIL has adopted the GRI standards for sustainability reporting.
To strengthen its commitment to 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 conformance to the
NVG 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 Report.
INTEGRATED REPORTING
During the year 2016-17, RIL has embraced integrated reporting
approach aligned with the International Integrated Reporting
Council’s (IIRC) framework. The long term sustainability
of any business is not only limited to its financial or economic
value creation, but also depends, among other things, on the
timely and sufficient availability of natural resources, people
with the right skill sets, knowledge and technology to support
business processes and license to operate from all relevant
stakeholders. The concept of six capitals as propounded by
the Framework also states the interrelatedness of each
capital to the other. Value creation across each capital is
fundamental to the long term viability of RIL’s business. This
integrated annual report also spells out the extent to which RIL’s
operations and strategy are integrated with the capitals viz; .
1. NATURAL CAPITAL
RIL focuses on the five areas i.e. clean air, clean water,
preventing soil contamination, preserving flora and
fauna and diligent use of scarce resources. RIL’s intent is
to ensure minimisation of environmental impact through
mitigation and offset initiatives. While positive impacts like
enhanced renewable portfolio and enhanced water and
waste recycling help RIL offset negative impacts, mitigation
of unavoidable impacts is carried out through advanced
technological interventions such as clean technologies and
investment in pollution control equipment
2. HUMAN CAPITAL
RIL has created employment for more than 1.4 lakhs of
employees and through Jio more than 50 lakh people were
employed. It continues to maintain a progressive people
environment, where purpose driven talent is attracted,
engaged and motivated by a consistent, meritocratic HR
framework. RIL has provided around 76.06 lakh man-hours
training to its people. RIL embraces a culture of diversity
and provides equal opportunity to all its employees.
3.
INTELLECTUAL CAPITAL
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.
4. MANUFACTURED CAPITAL
Setting up Refinery off gas cracker, Petcoke gasification
plant, improving long term supply security of ethane to the
existing crackers were some of the key ongoing projects
in FY 2016-17. Jio has built a world-class all-IP data strong
future proof network with latest 4G LTE technology. It is
future ready and can be easily upgraded to support even
more data, as technologies advance on to 5G, 6G and
beyond.
5. FINANCIAL CAPITAL
RIL has maintained two notches above India’s sovereign
rating for its international debt at BBB+ by S&P. The ratings
have been maintained despite RIL being in an investment
cycle. RIL is able to access capital from diversified market at
competitive rates.
6. SOCIAL AND RELATIONSHIP CAPITAL
RIL, through its social development projects under the
seven focus areas, has enabled the promotion of equitable
economic growth and ensured a more sustainable,
inclusive and people-centric development. GenNext Hub,
a uniquely positioned global programme helped start-ups
think big and grow fast
SHAREHOLDERS’ COMMUNICATIONS
The Board recognises the importance of two-way
communication with shareholders, giving a balanced report of
results and progress and responding to questions and issues
raised. 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. A comprehensive and
informative shareholders’ referencer is appended to this Annual
Report highlighting various securities related transactions
towards knowledge sharing.
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
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
200
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:
Category
Promoter
Directors
Independent
Directors
Executive
Directors
Name of Directors
Mukesh D. Ambani
(Chairman and Managing Director)
Nita M. Ambani
(Non-Executive, Non-Independent Director)
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
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil
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.
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 four times during
the financial year 2016-17 and held meetings without the
presence of Executive Directors. 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.
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17
201
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.
A declaration signed by the Company’s Chairman and
Managing Director is published in this Report.
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 for evaluation of the
performance of the Directors including Independent Directors.
The said criteria provide certain parameters like attendance,
acquaintance with business, communicating inter se board
members, effective participation, domain knowledge,
compliance with code of conduct, vision and strategy,
benchmarks established by global peers etc., which is in
compliance with applicable laws, regulations and guidelines.
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 are available on the website of the
Company: www.ril.com.
BOARD MEETINGS, BOARD
COMMITTEE MEETINGS AND
PROCEDURES
INSTITUTIONALISED DECISION-MAKING
PROCESS
The Board of Directors is the apex body constituted by
shareholders for overseeing the Company’s overall functioning.
The Board provides and evaluates the Company’s strategic
direction, management policies and their effectiveness, and
ensures that shareholders’ long-term interests are being served.
The Board has constituted seven Committees, viz. Audit
Committee, Human Resources, Nomination and Remuneration
Committee, Stakeholders’ Relationship Committee, Corporate
Social Responsibility and Governance Committee, Risk
Management Committee, Health, Safety and Environment
Committee and Finance 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 informed and efficient manner. The following sub-sections
deal with the practice of these guidelines at RIL.
SCHEDULING AND SELECTION OF AGENDA
ITEMS FOR BOARD MEETINGS
Minimum five pre-scheduled Board meetings are held annually.
Additional Board meetings are convened to address the
Company’s specific needs. In case of business exigencies or
urgency, resolutions are passed by circulation. The Board notes
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 Chairman of the Board and Company Secretary, in
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
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 202
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.
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 held are given below:
POST MEETING FOLLOW-UP MECHANISM
The guidelines for Board and Board Committee meetings
facilitate an effective post meeting follow-up, review and
reporting process for decisions taken by the Board and
Committees thereof.
Important decisions taken at Board/ Committee meetings
are communicated promptly to the concerned departments/
divisions. Action taken report on decisions/minutes of the
Date
April 22, 2016
July 15, 2016
July 28, 2016
October 20, 2016
January 16, 2017
January 24, 2017
Board Strength No. of Directors Present
13
14
14
13
12
11
14
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
AGM
Yes
Yes
Yes
Yes
Yes
No
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
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 RIL) have been considered.
No. of Membership(s) / Chairmanship(s) of Board
Committees in other Companies as on 31-03-2017
(2)
Nil
Nil
2
4 (including 3 as Chairman)
2
2
3 (including 1 as Chairman)
6 (including 5 as Chairman)
1
Nil
1 (as Chairman)
Nil
1
Nil
No. of Other Directorship(s)
as on 31-03-2017
(1)
4
Nil
8
5
5
3
11
7
1
3
1
2
2
Nil
Attendance at meetings
during 2016-17
Board
6
5
6
6
6
5
4
6
6
4
6
6
6
5
Mukesh D. Ambani
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
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil
(1)
(2)
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.
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17 203
BOARD COMMITTEES
Details of the Board Committees and other related information are provided hereunder:
COMPOSITION OF COMMITTEES OF THE COMPANY
AUDIT COMMITTEE
1. Yogendra P. Trivedi
Independent Director
(Chairman of the Committee)
2. Dr. Raghunath A. Mashelkar
Independent Director
3. Adil Zainulbhai
Independent Director
4. Raminder Singh Gujral
Independent Director
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
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
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
RISK MANAGEMENT
COMMITTEE
1. Adil Zainulbhai
Independent Director
(Chairman of the Committee)
2. Hital R. Meswani
Executive Director
3. P.M.S. Prasad
Executive Director
4. Alok Agarwal
Chief Financial Officer
5. Srikanth Venkatachari
Joint Chief Financial Officer
FINANCE COMMITTEE
1. Mukesh D. Ambani
Chairman and Managing
Director
(Chairman of the Committee)
2. Nikhil R. Meswani
Executive Director
3. Hital R. Meswani
Executive Director
Shri K. Sethuraman, Group Company Secretary and Chief Compliance Officer, is the Secretary of all the Committees.
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
204
MEETINGS OF COMMITTEES HELD DURING THE YEAR AND DIRECTORS’ ATTENDANCE:
Committees of the
Company
Audit
Committee
Meetings held
Directors’ Attendance
Mukesh D. Ambani
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
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil
7
NA
NA
7
NA
NA
NA
6
7
7
NA
NA
NA
NA
NA
Human
Resources
Nomination
and
Remuneration
Committee
6
Corporate
Social
Responsibility
and
Governance
Committee
4
NA
NA
6
6
NA
NA
5
6
NA
NA
NA
NA
NA
NA
NA
NA
4
4
NA
NA
4
NA
NA
NA
2
NA
NA
NA
Stakeholders'
Relationship
Committee
Health,
Safety and
Environment
Committee
Finance
Committee
Risk
Management
Committee
4
NA
NA
4
NA
4
NA
NA
NA
NA
NA
4
4
NA
NA
4
NA
NA
NA
4
NA
NA
NA
NA
NA
NA
NA
4
4
4
5
5
NA
NA
NA
NA
NA
NA
NA
NA
NA
5
5
NA
NA
4
NA
NA
NA
NA
NA
NA
NA
4
NA
NA
NA
4
4
NA
N.A. – Not a member of the Committee
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 committee members and placed before Board meetings
for noting.
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
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.
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:
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;
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;
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17
205
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 internal financial controls and risk
management systems
Reviewing, with the management, the performance of
statutory auditors and internal auditors, adequacy of
internal control systems
Formulating the scope, functioning, periodicity and
methodology for conducting the internal audit
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
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 or discharging that function) after assessing
qualifications, experience and background, and so on of
the candidate
Reviewing financial statements, in particular the
investments made by the Company’s unlisted subsidiaries
Reviewing mandatorily the following information:
(a)
(b)
(c)
(d)
(e)
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 letters/letters of internal control
weaknesses issued by the statutory auditors
Internal audit reports relating to internal control
weaknesses; and
Reviewing the appointment, removal and terms of
remuneration of the Chief internal auditor / internal
auditor(s)
Carrying out any other function as is mandated by the
Board from time to time and / or enforced by any statutory
notification, amendment as may be applicable
GENERAL
The representatives of Statutory Auditors are permanent
invitees to the Audit Committee meetings. The representatives
of Statutory Auditors, 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, 2016 was August 14, 2016 and the cost audit
report was filed by the Company on August 10, 2016. The cost
audit report of the Company for financial year ended March 31,
2017 will be filed with Central Government on or before the
due date as prescribed under Companies Act, 2013 read with
Companies (Cost Records and Audit) Rules, 2014.
The Internal Auditor reports directly to the Audit Committee.
The Chairman of the Audit Committee was present at the last
Annual General Meeting held on September 01, 2016.
MEETING DETAILS
Seven meetings of the Committee were held during the year,
as against the minimum requirement of four meetings. The
meetings were held on April 22, 2016; July 15, 2016; August 29,
2016; October 14, 2016; October 20, 2016; January 16, 2017;
March 09, 2017. The details of attendance are given in this
Report.
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
206
HUMAN RESOURCES, NOMINATION AND
REMUNERATION COMMITTEE
COMPOSITION OF THE COMMITTEE
meetings were held on April 21, 2016; July 14, 2016; July 28,
2016; October 17, 2016; January 16, 2017; March 27, 2017. The
details of attendance are given in this Report.
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
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
Formulate the criteria for evaluation of Independent
Directors and the Board
Devise a policy on Board diversity
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
Carry out evaluation of every Director’s performance
Consider extension or continuation of term of appointment
of independent directors on the basis of the report of
performance evaluation of independent directors.
Recommend/review remuneration of the Managing
Director(s) and Whole-time Director(s) based on their
performance and defined assessment criteria
Administer, monitor and formulate detailed terms and
conditions of the Employees’ Stock Option Scheme
Review human resources policies and overall human
resources of the Company
Perform such other functions as may be necessary or
appropriate for the performance of its duties
Carry out any other function as is mandated by the Board
from time to time and / or enforced by any statutory
notification, amendment as may be applicable
MEETING DETAILS
Six meetings of the Human Resources, Nomination and
Remuneration Committee were held during the year. The
The details relating to remuneration of Directors, as required
under Regulation 34 read with Schedule V 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.
Oversee the performance of the Company’s Registrars and
Transfer Agents
Recommend methods to upgrade the standard of services
to investors
Monitor implementation and compliance with the
Company’s Code of Conduct for Prohibition of Insider
Trading
Perform such other functions as may be necessary or
appropriate for the performance of its duties
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
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17
207
MEETING DETAILS
Four meetings of the Committee were held during the year. The
meetings were held on May 09, 2016; July 15, 2016; October 19,
2016; January 16, 2017. 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
350
1,757
3
182
2,292
As on March 31, 2017, 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 2016-17 is shown in the following table:
Total number of correspondence
received during 2016-17
Replied within 1 to 4 days of receipt
Replied within 5 to 7 days of receipt
Received in last week of March 2017
have been replied in April 2017
Number
%
1,50,528
100.00
1,50,188
340
216
99.77
0.23
-
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
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
Recommend the amount of expenditure to be incurred on
the CSR activities
Monitor the implementation of the CSR Policy of the
Company from time to time
Approve the Corporate Sustainability Reports and oversee
the implementation of sustainability activities
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
Observe practices of Corporate Governance at all levels and
to suggest remedial measures wherever necessary
Ensure compliance with Corporate Governance norms
prescribed under Listing Regulations, the Companies Act
and other statutes or any modification or re-enactment
thereof
Advise the Board periodically with respect to significant
developments in the law and practice of Corporate
Governance and to make recommendations to the Board
for appropriate revisions to the Company’s Corporate
Governance Guidelines
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
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
Formulate / approve codes and / or policies for better
governance
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
208
Provide correct inputs to the media so as to preserve and
protect the Company’s image and standing
Disseminate factually correct information to investors,
institutions and the public at large
Establish oversight on important corporate communication
on behalf of the Company with the assistance of
consultants / advisors, if necessary
Ensure institution of standardised channels of internal
communications across the Company to facilitate a high
level of disciplined participation
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
MEETING DETAILS
Four meetings of the Corporate Social Responsibility and
Governance Committee were held during the year. The
meetings were held on April 21, 2016; July 14, 2016; October 21,
2016; January 17, 2017.The details of attendance are given in
this Report.
RISK MANAGEMENT COMMITTEE
COMPOSITION OF THE COMMITTEE
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
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
Continually obtaining reasonable assurance from
management that all known and emerging risks have been
identified and mitigated or managed
Performing such other functions as may be necessary or
appropriate for the performance of its oversight function
Carry out any other function as is mandated by the Board
from time to time
MEETING DETAILS
Four meetings of the Committee were held during the year. The
meetings were held on May 31, 2016; July 28, 2016; October 21,
2016; January 17, 2017. The details of attendance are given in
this Report.
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
Monitoring and ensuring the highest standards of
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
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17
209
Carry out any other function as is mandated by the Board
from time to time
Provide corporate guarantee/performance guarantee by
the Company within the limits approved by the Board
MEETING DETAILS
Four meetings of the Health, Safety and Environment
Committee were held during the year. The meetings were held
on April 22, 2016; July 14, 2016; October 19, 2016; January 17,
2017. The details of attendance are given in this Report.
FINANCE 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
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 letters of comfort/providing
securities within the limits approved by the Board
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
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
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
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
MEETING DETAILS
Five meetings of the Finance Committee were held during the
year. The meetings were held on April 22, 2016; July 15, 2016;
October 20, 2016; November 14, 2016; January 16, 2017. 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 Board's 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.
REMUNERATION OF THE CHAIRMAN AND MANAGING DIRECTOR AND WHOLE-TIME
DIRECTORS DURING 2016-17
Name of the Director
Salary
Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil
4.16
1.50
1.50
1.40
0.60
Perquisites and
allowances
0.60
2.83
2.83
2.56
0.80
Retiral
benefits
0.71
0.25
0.25
0.25
0.11
Commission
payable
9.53
12.00
12.00
-
-
Performance Linked
Incentive Payable
-
-
-
3.66
1.03
Total
15.00
16.58
16.58
7.87
2.54
(` In crore)
Stock
options
-
64.18
64.18
45.85
1.00
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
210
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 5 (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 2016-17:
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
(` In crore)
Sitting Fee Commission
Total
0.09
0.31
0.24
0.14
0.09
0.22
0.26
0.04
0.17
1.56
1.35
1.35
1.35
1.35
1.35
1.35
1.35
1.35
1.44
1.66
1.59
1.49
1.44
1.57
1.61
1.39
1.35
12.15
1.52
13.71
During the year, the Company paid ` 88.65 lakh as professional
fees to 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. Keeping in view
good corporate governance, 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 an unlisted subsidiary and Reliance Jio
Infocomm Limited, a material subsidiary whose non-convertible
debt securities are listed.
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
Minutes of Board meetings of unlisted subsidiary
companies are placed before the Company’s Board
regularly.
A statement containing all significant transactions
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
2015-16
Date
September
01, 2016
Time
11.00
a.m.
2014-15
June 12,
2015
11.00
a.m.
2013-14
June 18,
2014
11.00
a.m.
ii.
iii.
Special Resolution Passed
Offer or invitation for
i.
subscription of Non –
Convertible Debentures
on private placement basis
(enabling resolution – not
implemented)
Continuation of employment
of Shri Pawan Kumar Kapil as a
Whole-time Director designated
as Executive Director
Offer or invitation for
subscription of Non –
Convertible Debentures
on private placement basis
(enabling resolution – not
implemented)
Payment of remuneration to
Non-executive Directors not
exceeding in aggregate one
percent of the net profits of the
Company
Offer or invitation for
subscription of Non –
Convertible Debentures
on private placement basis
(enabling resolution – not
implemented)
Adoption of new Articles of
Association of the Company
iii.
ii.
i.
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17
211
SPECIAL RESOLUTION(S) PASSED THROUGH
POSTAL BALLOT
No postal ballot was conducted during the financial year
2016-17. None of the businesses proposed to be transacted
at the ensuing Annual General Meeting require passing a
resolution through Postal Ballot.
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.
All the 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 30 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 on 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)
The Securities and Exchange Board of India (‘SEBI’), on
August 08, 2014 had passed an adjudication order on a
Show Cause Notice issued to the Company for alleged
non-disclosure of the diluted Earnings per Share in the
quarterly financial results for the quarters ended June,
2007, September, 2007, December, 2007, March, 2008,
June, 2008 and September, 2008 and imposed monetary
penalty of Rs. 13 crore. On an appeal by the Company, the
Hon’ble Securities Appellate Tribunal (‘SAT’), set aside SEBI’s
order and remanded the matter for fresh consideration by
SEBI. SEBI issued a fresh Show Cause Notice dated April
05, 2016 in the matter. The Company has filed reply to the
Show Cause Notice and attended the personal hearing on
July 26, 2016. No order has been passed by SEBI so far.
(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 on February 25, 2016 and has also
provided the information to SEBI. No order has been
passed by SEBI so far.
(iii) SEBI has passed an order under section 11B of the
Securities and Exchange Board of India Act, 1992 on March
24, 2017 on a Show Cause Notice dated December 16, 2010
issued to the Company in the matter concerning trading in
Reliance Petroleum Limited shares by the Company in the
year 2007, directing (i) disgorgement of Rs.447.27 crores
along with interest calculated at the rate of 12% per annum
from November 29, 2007 till date of payment and (ii)
prohibiting the Company from dealing in equity derivatives
in the F&O segment of the stock exchanges, directly or
indirectly for a period of one year from March 24, 2017. The
Company is in the process of filing an appeal, challenging
SEBI’s order before Hon’ble SAT.
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 ‘Loksatta / Navshakti’.
Simultaneously, they are also put up on the Company’s website
(www.ril.com).
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 212
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 put on the Company’s
website (www.ril.com) as well as sent to the Stock Exchanges.
No unpublished price sensitive information is discussed in
meeting / presentation with institutional investors and financial
analysts.
Website: The Company’s website (www.ril.com) contains
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
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.
Chairman’s Communiqué: The printed copy of the Chairman’s
speech is distributed to shareholders at Annual General
Meetings. The document is also put on the Company’s website
(www.ril.com) and sent to the Stock Exchanges.
Reminder to Investors: Reminders for unclaimed shares,
unpaid dividend/unpaid interest or redemption amount on
debentures are sent to the shareholders / debenture holders as
per records every year.
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 2015-16. The
feedback received from shareholders is placed before the
Stakeholders’ Relationship Committee.
GENERAL SHAREHOLDER
INFORMATION
COMPANY REGISTRATION DETAILS
The Company is registered in the State of Maharashtra,
India. The Corporate Identity Number (CIN) allotted to the
Company by the Ministry of Corporate Affairs (MCA) is
L17110MH1973PLC019786.
ANNUAL GENERAL MEETING
(Day, Date, Time and Venue)
Friday, July 21, 2017 at 11.00 a.m.
Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Near
Bombay Hospital & Medical Research Centre, New Marine Lines,
Mumbai 400 020
FINANCIAL YEAR
April 1 to March 31
DIVIDEND PAYMENT DATE
Credit / despatch of dividend payment: Between July 21, 2017
to July 28, 2017.
FINANCIAL CALENDAR (TENTATIVE)
RESULTS FOR THE QUARTER ENDING
June 30, 2017 – Third week of July, 2017
September 30, 2017 – Second week of October, 2017
December 31, 2017 – Third week of January, 2018
March 31, 2018 – Third week of April, 2018
Annual General Meeting – June, 2018
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.
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17
213
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 2017-18 has been paid by the
Company to BSE and NSE. Annual maintenance and listing
agency fee for the calendar year 2017 has been paid by the
Company to the Luxembourg Stock Exchange.
PAYMENT OF DEPOSITORY FEES
Annual Custody/Issuer fee for the year 2017-18 will be paid by
the Company to NSDL and CDSL on receipt of the invoices.
Also traded on International Order Book System (London Stock
Exchange) and PORTAL System (NASD, USA) Trading Symbol
RILYP, CUSIP 759470107.
OVERSEAS DEPOSITORY
The Bank of New York Mellon Corporation, 101, Barclay Street,
New York, NY 10286 USA.
DOMESTIC CUSTODIAN
ICICI Bank Limited, Empire Complex, E7/F7, 1st Floor, 414,
Senapati Bapat Marg, Lower Parel, Mumbai 400 013.
DEBT SECURITIES
The details of listing of Non-Convertible Debentures issued by
the Company are given here below.
Non-Convertible
Debentures Series
PPD 177
PPD 179 - T3
PPP 180 – T1
Listing Details
Listed on Wholesale Debt Market Segment of NSE
Listed on Wholesale Debt Market Segment of NSE
Listed on Wholesale Debt Market
Segment of BSE and NSE
STOCK MARKET PRICE DATA
Month
National Stock Exchange (NSE)
BSE Limited (BSE)
High Price (`)
Low Price (`)
Volume (No.)
High Price (`)
Low Price (`)
Volume (No.)
1,069.90
April 2016
994.95
May 2016
994.15
June 2016
1,038.75
July 2016
1,074.00
August 2016
1,129.55
September 2016
1,126.25
October 2016
1,055.95
November 2016
1,085.00
December 2016
1,097.50
January 2017
1,256.80
February 2017
1,337.65
March 2017
[Source: This information is compiled from the data available on the websites of BSE and NSE]
978.85
925.65
933.40
970.00
983.40
1,002.30
1,043.40
930.00
986.50
1,012.80
1,022.00
1,227.05
7,98,51,925
6,82,00,780
5,97,03,860
5,31,01,084
6,18,26,490
10,27,51,254
6,18,44,946
6,54,22,636
6,59,81,989
6,19,45,957
11,51,21,994
14,98,31,081
1,070.00
994.70
995.00
1,039.00
1,073.55
1,128.90
1,124.80
1,055.00
1,084.70
1,097.00
1,256.50
1,336.00
977.85
925.70
934.40
970.20
984.50
1,003.10
1,043.20
932.00
987.55
1,014.05
1,022.00
1,225.65
53,53,032
49,33,727
52,66,522
62,12,010
62,58,908
1,13,16,252
73,30,283
51,70,909
71,08,342
56,11,677
1,14,71,980
1,19,12,93,571
SHARE PRICE PERFORMANCE IN
COMPARISON TO BROAD BASED INDICES –
BSE SENSEX AND NSE NIFTY AS ON
MARCH 31, 2017
BSE (% Change)
NSE (% Change)
RIL
26.21
59.96
41.93
76.30
Sensex
16.88
5.95
32.32
70.19
RIL
26.38
59.92
41.92
75.98
Nifty
18.55
8.04
36.84
73.24
FY 2016-17
2 years
3 years
5 years
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 425 8998 (From 9:00 a.m. to 6:00 p.m.)
Fax: +91-40-67161680
e-mail: rilinvestor@karvy.com Website: www.karvy.com
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 214
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.
SHAREHOLDING PATTERN AS ON MARCH 31, 2017
Sr. No. Category of shareholder
(A)
(1)
(2)
(B)
(1)
(2)
(C)
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)
Number of
shareholders
Total number of
shares
As a percentage
of (A+B+C)
55*
-
55
1,46,31,01,074
-
1,46,31,01,074
2152
24,99,098
25,01,250
1,09,17,98,248
60,39,66,432
1,69,57,64,680
45.00
-
45.00
33.58
18.58
52.16
(1)
(2)
-
2.84
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.
-
9,24,12,346
25,01,306 3,25,12,78,100
-
1
SHAREHOLDING OF DIRECTORS
CATEGORY - WISE SHAREHOLDING
(%)
Name of Director
Mukesh D. Ambani
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
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
No. of shares held as
on March 31, 2017
Promoter
Institutions
Non-Institutions
GDR Holders
36,15,846
3,36,000
27,984
13,544
2,300
-
-
-
-
33,98,146
16,78,374
16,11,886
10,36,666
33,499
2.84
18.58
33.58
45.00
Holders
DISTRIBUTION OF SHAREHOLDING BY SIZE
AS ON MARCH 31, 2017
Category
(Shares)
Up to 500
501 - 1000
1001 - 5000
5001 - 10000
10001 - 20000
Above 20000
TOTAL
16,14,28,853
4,42,09,511
7,44,58,334
1,89,59,537
1,34,97,885
2,93,87,23,980
25,01,306 3,25,12,78,100
% of Total
Shares
4.97
1.36
2.29
0.58
0.42
90.39
100.00
23,93,969
62,585
39,428
2,734
972
1,618
Shares
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17 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
215
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
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
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 216
Particulars
Allotment Date
No. of Shares
Shareholders of Sidhpur Mills Co Limited (Merged with the Company)
Shareholders of Reliance Petrochemicals Limited (Merged with the Company)
Loan Conversion
Debenture Series H Conversion
Warrant Conversion (Debenture Series F)
Euro Issue GDR II
Loan Conversion
Warrant Conversion (Debenture Series J)
Private Placement of Shares
Conversion of Reliance Petrochemicals Limited Debentures
Shareholders of Reliance Polypropylene Limited and Reliance Polyethylene Limited
(Merged with the Company)
Warrants Conversion
Conversion of 3.5% ECB Due 1999 I
Conversion of 3.5% ECB Due 1999 II
Conversion of 3.5% ECB Due 1999 III
Conversion of 3.5% ECB Due 1999 IV
Conversion of 3.5% ECB Due 1999 V
Conversion of 3.5% ECB Due 1999 VI
Bonus Issue III
Conversion of 3.5% ECB Due 1999 VII
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
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, 2017
December 4, 1992
July 7, 1993
August 26, 1993
August 26, 1993
February 23, 1994
March 1, 1994
August 3, 1994
October 21, 1994
December 22, 1994
March 16, 1995
March 10, 1995
May 24, 1997
July 11, 1997
July 22, 1997
September 13, 1997
October 22, 1997
November 4, 1997
December 20, 1997
December 4, 1997
September 27, 1999
January 12, 2000
October 23, 2002
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
Various dates in 2016-17
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
2,45,45,450
75,472
9,95,75,915
74,80,000
544
13,31,042
6,05,068
18,64,766
18,15,755
1,03,475
46,60,90,452
15,68,499
7,624
12,00,00,000
34,26,20,509
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
1,09,01,779
-28,69,495
-4,62 46,280
325,12,78,100
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17 217
CORPORATE BENEFITS TO INVESTORS
DIVIDEND DECLARED FOR THE LAST 10 YEARS
Financial
Year
Dividend
Declaration
Dividend
per Share*
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
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
11
13
13
7
8
8.5
9
9.5
10
10.50
* Share of paid-up value of `10 per share
Note: The Board has recommended a dividend of `11/- per share, for the financial
year 2016-17.
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
SHARES ISSUED ON DEMERGER
Consequent upon the demerger of the coal based,
gas based, financial services and telecommunications
undertakings / businesses of the Company in December,
2005, the shareholders of the Company were allotted equity
shares of the four companies, namely, Reliance Energy
Ventures Limited (REVL), Reliance Natural Resources Limited
(RNRL), Reliance Capital Ventures Limited (RCVL) and Reliance
Communication Ventures Limited (RCoVL) in the ratio of one
equity share of each of the companies for every equity share
held by shareholders except specified 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
%
96.05
1.96
1.99
100.00
98.01% of Company’s paid-up Equity Share Capital has been
dematerialised up to March 31, 2017 (97.91% up to March 31,
2016). 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 2016-17 is given below:
BSE
NSE
Total
Shares (nos.)
Value (in ` crore)
51,10,190
650.70
38,12,839
412.43
89,23,029
1,063.13
[Source: This information is compiled from the data available on 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, 2017 represent
9,24,12,346 equity shares constituting 2.84% 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
RIL GDRs are listed on 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 2016-17 and other particulars with regard to
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 218
Employees’ Stock Options are put up on the Company’s website
and can be accessed at
http://www.ril.com/InvestorRelations/Downloads.aspx
Nagothane Manufacturing Division
P. O. Petrochemicals Township, Nagothane – 402 125,
Roha Taluka, District Raigad, Maharashtra, India
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
PETROCHEMICALS
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
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
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 425 8998 (From 9:00 a.m. to 6:00 p.m.)
Fax: +91-40-67161680
e-mail: rilinvestor@karvy.com Website: www.karvy.com
FOR SHARES/DEBENTURES HELD IN DEMAT
FORM
Investors’ concerned Depository Participant(s) and/or Karvy
Computershare Private Limited.
ANY QUERY ON THE ANNUAL REPORT
Shri 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
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17 219
TRANSFER OF UNPAID/UNCLAIMED
AMOUNTS AND SHARES TO
INVESTOR EDUCATION AND
PROTECTION FUND
During the year under review, the Company has credited
` 29.42 crore to the Investor Education and Protection Fund
(IEPF) pursuant to Section 125(1) of the Companies Act, 2013.
The cumulative amount transferred by the Company to IEPF up
to March 31, 2017 is ` 157.81 crore.
In accordance with Section 124(6) of the Companies Act,
2013 read with the Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and Refund) Rules, 2016,
as amended, the Company has initiated necessary action for
transfer of all shares in respect of which dividend declared for
the financial year 2009-10 or earlier financial years has not been
paid or claimed by the members for seven consecutive years or
more.
The Company has uploaded on its website the details of
unpaid and unclaimed amounts lying with the Company as on
September 1, 2016 as also the details of shares liable for transfer
in the name of IEPF Authority. The aforesaid details are put on
the Company's website and can be accessed at: http://www.ril.
com/InvestorRelations/ShareholdersInformation.aspx.
The Company has also uploaded details of shares liable for
transfer in the name of IEPF Authority on the website of the
Ministry of Corporate Affairs (www.mca.gov.in)
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
Demat
Physical
Aggregate Number of shareholders and the outstanding shares in the
suspense account lying as on April 1, 2016
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, 2017
96
-
-
96
Number of
Shareholders
Number of
equity shares
Number of
Shareholders
(phase wise
transfers)
1,60,115
Number of
equity shares
60,47,599
1,096
77,323
72
3,712
1,308
-
-
1,308
1,59,091
59,73,988
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
Sr.
No.
Compliance observed for the following during the
financial year 2016-17
Regulation
Particulars
1.
Board of Directors
17
Compliance
Status
Yes / No/N.A.
Yes
Composition
Number of 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
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 220
Sr.
No.
Particulars
Regulation
2.
Audit Committee
3.
4.
5.
6.
7.
8.
Nomination and
Remuneration Committee
Stakeholders Relationship
Committee
Risk Management
Committee
Vigil Mechanism
Related Party Transactions
Subsidiaries of the
Company
9.
Obligations with respect
to Independent Directors
10. Obligations with respect
to employees including
senior management,
key managerial persons,
directors and promoters
18
19
20
21
22
23
24
25
26
11. Other Corporate
27
Governance requirements
12. Website
46(2)(b)
to (i)
Yes
Yes
Compliance
Status
Yes / No/N.A.
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Compliance observed for the following during the
financial year 2016-17
Composition
Number of 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
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
The Company did not have any material unlisted subsidiary and as a
result the compliances in respect of material unlisted subsidiary were not
applicable
Review of financial statements of unlisted subsidiary by the Audit
Committee
Minutes of the Board of Directors of the subsidiaries are placed at the
meeting of the Board of Directors
Yes
Yes
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
Agreement with regard to compensation or profit sharing in connection
with dealings in securities of the Company by key managerial persons,
director and promoter
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 familiarization programmes imparted to Independent Directors
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17 221
COMPLIANCE CERTIFICATE OF THE AUDITORS
Certificate from the Company’s Auditors, Chaturvedi & Shah, Deloitte Haskins & Sells LLP and Rajendra & Co., confirming compliance
with conditions of Corporate Governance, as stipulated under Regulation 34 of the Listing Regulations, is attached to this Report.
ADOPTION OF MANDATORY AND NON-MANDATORY REQUIREMENTS
The Company has complied with all mandatory requirements of Regulation 34 of the Listing Regulations. The Company has adopted
following non-mandatory requirements of Regulation 27 and Regulation 34 of the Listing Regulations.
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 2016-17.
Mumbai, April 24, 2017
Mukesh D. Ambani
Chairman and Managing Director
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.
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 222
CEO / CFO CERTIFICATE
To,
The Board of Directors
Reliance Industries Limited
1.
We have reviewed financial statements and the cash flow statement of Reliance Industries Limited for the year ended 31st
March, 2017 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.
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.
2.
3.
4.
We have indicated to the Auditors and the Audit Committee:
i.
that there are no significant changes in internal control over financial reporting during the year;
ii.
that there are changes in accounting policies during the year on account of Ind AS adoption and the same have been
disclosed in the notes to the financial statement; and
iii.
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 24, 2017
Reliance Industries Limited Life is Beautiful. Life is Digital.CORPORATE GOVERNANCE REPORTIntegrated Annual Report 2016-17
223
AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
To the Members
Reliance Industries Limited
INDEPENDENT AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
1. This certificate is issued in accordance with the terms of our engagement with Reliance Industries Limited (‘the Company’).
2.
We have examined the compliance of conditions of Corporate Governance by the Company, for the year ended on 31 March
2017, as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations).
MANAGEMENTS’ RESPONSIBILITY
3.
The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility includes the
design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of
the Corporate Governance stipulated in Listing Regulations.
AUDITOR’S RESPONSIBILITY
4.
Our responsibility is limited to examining 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.
5.
We have examined the books of account and other relevant records and documents maintained by the Company for the
purposes of providing reasonable assurance on the compliance with Corporate Governance requirements by the Company.
6.
We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note on
Certification of Corporate Governance issued by the Institute of the Chartered Accountants of India (the ICAI), the Standards on
Auditing specified under Section 143(10) of the Companies Act 2013, in so far as applicable for the purpose of this certificate
and as per the Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which requires that we comply
with the ethical requirements of the Code of Ethics issued by the ICAI.
7.
We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control
for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services
Engagements.
OPINION
8.
Based on our examination of the relevant records and according to the information and explanations provided to us and the
representations provided by the Management, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the
Listing Regulations during the year ended March 31, 2017.
9.
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
(Registration No.
101720W)
Rajesh D. Chaturvedi
Partner
Membership No.: 45882
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Registration No.
117366W/W-100018)
A. B. Jani
Partner
Membership No.: 46488
For Rajendra & Co.
Chartered Accountants
(Registration No.
108355W)
A. R. Shah
Partner
Membership No.: 47166
Mumbai, April 24, 2017
Corporate Governance Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 224
BOARD'S REPORT
Dear Members,
The Board of Directors are pleased to present the Company’s Fortieth Annual Report (Post-IPO) and the Company's audited financial
statements (standalone and consolidated) for the financial year ended March 31, 2017.
FINANCIAL RESULTS
The Company’s financial performance for the year ended March 31, 2017 is summarised below:
PROFIT BEFORE TAX
Less: Current Tax
Deferred Tax
PROFIT FOR THE YEAR
STANDALONE
CONSOLIDATED
2016-17
2015-16
2016-17
2015-16
₹ crore
US$
million*
₹ crore
US$
million*
₹ crore
US$
million*
₹ crore
US$
million*
40,777
6,288
36,016
5,436
40,034
6,173
38,737
8,333
1,019
1,285
7,801
157
831
1,177
125
8,880
1,321
1,369
8,042
204
834
5,847
1,214
126
31,425
4,846
27,384
4,134
29,833
4,600
29,861
4,507
Add: Other Comprehensive Income
2,192
338
838
126
1,827
282
946
143
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
33,617
5,184
28,222
4,260
31,660
4,882
30,807
4,650
Less: Total Comprehensive Income attributable to
Non Controlling Interest
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE
TO OWNERS OF THE COMPANY
-
-
-
-
(64)
(10)
111
17
33,617
5,184 28,222
4,260 31,724
4,892 30,696
4,633
Add: Balance in Profit and Loss Account (Adjusted)
25,679
4,638
26,716
4,794
7,851
1,393
7,268
1,304
Add: Transferred from Capital Reserve Account
Add: On account of Amalgamation / Disposal of
Subsidiaries
Add: Movement in Other Comprehensive Income
SUB-TOTAL
LESS: APPROPRIATION
Transferred to Statutory Reserve
Transferred to General Reserve
Transferred to Capital Redemption Reserve
Transferred to Debenture Redemption Reserve
Dividend on Equity Shares
Tax on dividend
CLOSING BALANCE (INCLUDING OTHER
COMPREHENSIVE INCOME)
-
-
-
-
-
-
-
-
-
(252)
-
(39)
839
(65)
59,296
9,822
54,938
9,054
39,323
6,246
37,149
-
-
(1,589)
127
(10)
(240)
5,814
-
-
-
-
66
10
35
5
24,790
3,823
22,000
3,321
24,790
3,823
22,000
3,321
-
-
-
-
-
-
-
-
-
-
6,039
1,220
-
-
911
184
-
-
-
-
-
-
-
-
1
3
6,039
1,220
0
0
911
184
34,506
5,999 25,679
4,638 14,467
2,413
7,851
1,393
*
1 US$ = ₹ 64.85 Exchange Rate as on March 31, 2017 (1 US$ = ₹ 66.25 as on March 31, 2016)
Figures for FY 2015-16 have been restated as per Ind AS and therefore may not be comparable with financials for FY 2015-16
approved by the Directors and disclosed in the financial statement of previous year.
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
225
INDIAN ACCOUNTING STANDARD
The Ministry of Corporate Affairs (MCA) on February 16,
2015, notified that Indian Accounting Standards (Ind AS) are
applicable to certain classes of companies from April 1, 2016
with a transition date of April 1, 2015. Ind AS has replaced
the previous Indian GAAP prescribed under Section 133 of
the Companies Act, 2013 ("the Act") read with Rule 7 of the
Companies (Accounts) Rules, 2014.
Ind AS is applicable to the Company from April 1, 2016.
The reconciliations and descriptions of the effect of the
transition from previous GAAP to Ind AS have been set out in
Note 41 in the notes to accounts in the standalone financial
statement and in Note 42 in the notes to accounts in the
consolidated financial statement.
RESULTS OF OPERATIONS AND THE STATE
OF COMPANY’S AFFAIRS
THE HIGHLIGHTS OF THE COMPANY’S
PERFORMANCE (STANDALONE) FOR THE YEAR
ENDED MARCH 31, 2017 ARE AS UNDER:
Revenue from operations increased by 5.5 % to ₹ 2,65,041
crore (US$ 40.9 billion).
Exports increased 0.6% to ₹ 1,47,755 crore (US$ 22.8
billion).
PBDIT increased by 10.2% to ₹ 51,965 crore (US$ 8.0 billion).
Profit before Tax increased by 13.2 % to ₹ 40,777 crore (US$
6.3 billion).
Brent crude oil price averaged US$ 48.6/bbl in FY2016-17
as compared to US$ 47.5/bbl in the previous year. Exports
(including deemed export) from India were marginally higher at
₹ 1,47,755 crore (US$ 22.8 billion) as against ₹ 1,46,855 crore in
the previous year.
During FY 2016-17, the Company took significant steps towards
completion of the ongoing hydrocarbon projects with the
commissioning of Para-xylene (PX) plant at Jamnagar, making
it the 2nd largest producer of PX globally. During the year, the
Company completed the world’s largest and most complex
ethane project. It commissioned ethane receipt and handling
facilities at its Dahej manufacturing facilities in a record time
of less than three years. The Refinery Off-Gas Cracker (ROGC)
and downstream projects as well as gasification linked to DTA
refinery achieved the installation and mechanical completion
during the year and pre-commissioning and start up activities
are in full swing. The installation and mechanical completion
for the gasification linked to the Company’s SEZ refinery
has also been substantially achieved. The completion of
the hydrocarbon capex cycle will significantly enhance the
Company’s cash flows and impart a high degree of stability to
its earnings stream.
DIVIDEND
The Board of Directors has recommended a dividend of ₹ 11/-
(that is, 110%) per equity share of `10/- each (last year ₹ 10.50
per equity share) for the financial year ended March 31, 2017
amounting to ₹ 3,916 crore (inclusive of dividend distribution
tax of ₹ 661 crore). The dividend payment is subject to approval
of members at the ensuing Annual General Meeting.
Cash Profit increased by 11.2% to ₹ 40,909 crore (US$ 6.3
billion).
The dividend payout is in accordance with the Company’s
Dividend Distribution Policy.
Net Profit increased by 14.8 % to ₹ 31,425 crore (US$ 4.8
billion).
Gross Refining Margin stood at US$ 11.0 / bbl for the year
ended March 31, 2017.
FINANCIAL PERFORMANCE REVIEW AND ANALYSIS
(CONSOLIDATED)
The Company achieved a consolidated turnover of ₹ 3,30,180
crore (US$ 50.9 billion) for the year ended March 31, 2017,
an increase of 12.6%, as compared to ₹ 2,93,298 crore in the
previous year. Increase in revenue is primarily on account
of increase in prices of refining and petrochemical products
partially offset by lower volumes from E&P business. Turnover
was also boosted by robust growth in retail business which
recorded a 60.2% surge in turnover to ₹ 33,765 crore.
The Dividend Distribution Policy of the Company is annexed
herewith as Annexure I to this Report.
MATERIAL CHANGES AFFECTING THE
COMPANY
There have been no material changes and commitments
affecting the financial position of the Company between the
end of the financial year and date of this Report. There has
been no change in the nature of business of the Company.
MANAGEMENT’S DISCUSSION AND
ANALYSIS REPORT
Management’s Discussion and Analysis Report for the
year under review, as stipulated under the Securities and
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
226
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:
RETAIL BUSINESS
Reliance Retail achieved a turnover of ` 33,765 crore in
FY 2016- 17 as against ` 21,075 crore during the previous year,
registering a strong growth of 60.2%. The business delivered
record profits during the year with an EBIT of ` 784 crore as
against ` 504 crore in the previous year.
REFINING & MARKETING BUSINESS
The revenue from the R&M segment increased y-o-y to
₹ 2,50,833 crore (US$38.7 billion), reflecting higher average oil
prices and volumes during the year. Refining EBIT increased by
6.5% y-o-y to a record level of ₹ 25,056 crore (US$ 3.9 billion),
supported by strong product demand, lower freight rates and
effective crude sourcing and robust risk management.
At US$11.0/bbl, refining margins were at an 8 (eight) year high.
Premium over Singapore GRM was also at an 8 (eight) year
high of US$5.2/bbl.
PETROCHEMICALS BUSINESS
The revenue from the Petrochemicals segment increased by
12.2% y-o-y to ₹ 92,472 crore (US$ 14.3 billion), primarily due
to increase in prices across polymers and polyester chain.
Petrochemicals segment EBIT increased sharply by 27.5% to
₹ 12,990 crore (US$ 2.0 billion), supported by favourable
product deltas and marginal volume growth. Petrochemical
EBIT margins were at 5 (five) years high at the level of 14%.
OIL AND GAS (EXPLORATION &
PRODUCTION) BUSINESS
During the year, the Company commenced commercial
production from its Coal Bed Methane block (CBM), at Sohagpur
(West). The CBM project is India’s largest surface hydrocarbon
project. The revenues for the domestic oil and gas operations
declined by 34.6% to Rs. 2,787 crore. This was largely on account
of 23% decline in production and reduced gas price realisation.
Consequently domestic upstream operations registered
negative EBIT of Rs. (131) crore. In the US Shale operations,
weaker Natural Gas differentials in the Marcellus region along
with lower volumes resulted in lower revenues and EBITDA.
The business is taking a cautious approach to resuming
development and focusing on conserving cash and retaining
optionality.
Reliance Retail added 371 stores during the year. It operated
3,616 stores across 702 cities with an area of over 13.5 million
square feet. In addition to the retail stores, Reliance Retail
operated 448 fuel outlets as on March 31, 2017.
DIGITAL SERVICES
Reliance Jio announced the commencement of services with
‘Jio Welcome Offer’ in September 2016. In a short period of 170
days, Jio crossed a milestone of 100 million customers on its all
IP wireless broadband network, reflecting an unprecedented
level of acceptance for any technology company globally.
In February 2017, Jio announced industry redefining tariff
plans as it embarked upon the world’s largest migration from
free to paid services. It announced the Jio Prime Membership
for its initial customers and within a month of announcing the
Jio Prime offer, over 72 million Jio customers signed up for Jio
Prime, making it one of the most successful customer privilege
programmes anywhere in the world.
Within 6 months of the launch of Jio, India became the highest
mobile data user globally with a monthly consumption of over
1 billion GB. This level of growth has been unprecedented on
any mobile network anywhere in the world, and is a testimony
to the comprehensive digital ecosystem that Jio has created.
Jio continues to expand its current LTE network coverage
foot print and is also deploying Fiber-to-the-home (FTTH)
technology for wire-line broadband and Carrier-Wi-Fi
technologies for broadband via public hotspots.
MEDIA AND ENTERTAINMENT
Network18 improved its market-standing and continued
investing for growth in what was a tumultuous year for the
media industry. The operating revenues on a consolidated basis
stood at ₹ 1,491 crore, down by 2.4% from ₹ 1,527 crore in FY
2015-16.
Driven by sustained investments into new businesses and
entry into more regional markets, Network18 reported an
consolidated EBIT of ₹ (201) crore for FY 2016-17, as against
₹ 173 crore in FY 2015-16.
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17 227
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 Ratings
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 Act and Ind AS 110 - Consolidated
Financial Statements read with Ind AS 28 - Investments in
Associates and Ind AS 31 - 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 II 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 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 the link: http://www.ril.com/
InvestorRelations/FinancialReporting.aspx. The financial
statements of each of the subsidiaries 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, that is, except
Saturdays, Sundays and Public Holidays at the Registered Office
of the Company.
The Company has formulated a policy for determining material
subsidiaries. The Policy may be accessed at the link: http://www.
ril.com/InvestorRelations/Downloads.aspx.
DIRECTORS’ RESPONSIBILITY
STATEMENT
Your Directors state that:
a)
in the preparation of the annual accounts for the year
ended March 31, 2017, 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, 2017 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;
the Directors have prepared the annual accounts on a
going concern basis;
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
b)
c)
d)
e)
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 certificate from the Auditors of the Company confirming
compliance with the conditions of Corporate Governance is
attached to the Report on Corporate Governance.
The 16th ICSI National Awards for Excellence in Corporate
Governance, were presented to the best Governed Companies
by The Institute of Company Secretaries of India (ICSI) and the
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 228
Company was presented the prestigious ICSI Certificate of
Recognition for Excellence in Corporate Governance for the year
2015-16.
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 the Annual Report.
CONTRACTS OR ARRANGEMENTS
WITH RELATED PARTIES
All contracts / arrangements / transactions entered by the
Company during the financial year with related parties were in
ordinary course of business and on arms’ 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 30 to the standalone financial
statement which sets out related party disclosures pursuant to
Ind AS.
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 livelihood
solutions, addressing poverty, hunger and malnutrition.
Environment: Environmental sustainability, ecological
balance, conservation of natural resources and promoting
bio-diversity.
Health: Affordable solutions for healthcare through
improved access, awareness and health seeking behaviour.
Education and Sports: Access to quality education,
training and skill enhancement, building sports & skills in
young students.
Disaster Response: Managing and responding to disaster.
Arts, Heritage and Culture: Protection and promotion of
India’s arts, culture and heritage.
Urban Renewal
The Company also undertakes other need based initiatives in
compliance with Schedule VII to the Act.
During the year, the Company spent ₹ 659.20 crore (around
2.13% of the average net profits of last three financial years) on
CSR activities.
The annual report on CSR activities is annexed herewith marked
as Annexure III.
CORPORATE SOCIAL
RESPONSIBILITY (CSR)
The Board is pleased to inform that the Company was presented
the first ICSI CSR Excellence Award in the large category in the
ICSI CSR Excellence Awards function organised by The Institute
of Company Secretaries of India (ICSI).
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.
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.
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
229
More details on Risk Management indicating development
and implementation of Risk Management policy including
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
Internal Financial Controls are an integrated part of the risk
management process, addressing financial and financial
reporting risks. The internal financial controls have been
documented, digitised and embedded in the business
processes.
Assurance on the effectiveness of internal financial controls
is obtained through management reviews, control self-
assessment, continuous monitoring by functional experts as
well as testing of the internal financial control systems by the
internal auditors during the course of their audits. We believe
that these systems provide reasonable assurance that our
internal financial controls are designed effectively and are
operating as intended.
DIRECTORS AND KEY MANAGERIAL
PERSONNEL
In accordance with the provisions of the Act and the Articles of
Association of the Company, Smt. Nita M. Ambani and
Shri Hital R. Meswani, Directors of the Company, retire by
rotation at the ensuing Annual General Meeting and being
eligible, have offered themselves for re-appointment.
The term of Shri P. K. Kapil and Shri Nikhil R. Meswani as
Whole-time Director is up to May 15, 2018 and June 30, 2018,
respectively. The Board of Directors on the recommendation
of the Human Resources, Nomination and Remuneration
Committee has re-appointed Shri P. K. Kapil and Shri Nikhil R.
Meswani as Whole-time Directors of the Company for a period
of 5 (five) years with effect from May 16, 2018 and July 01, 2018
respectively, subject to approval of shareholders.
The first term of office of Shri Yogendra P. Trivedi, Prof. Ashok
Misra, Shri Mansingh L. Bhakta, Dr. D. V. Kapur, Prof. Dipak C.
Jain and Dr. Raghunath A. Mashelkar, as Independent Directors,
expires at the ensuing Annual General Meeting.
Dr. D. V. Kapur has requested the Board not to consider him for
re-appointment and relieve him from the office of the director
after the expiry of his present term.
The Board has recommended re-appointment of
Shri Yogendra P. Trivedi, Prof. Ashok Misra, Shri Mansingh L.
Bhakta, Prof. Dipak C. Jain and Dr. Raghunath A. Mashelkar, as
Independent Directors of the Company for a second term of 5
(five) consecutive years.
The Board places on record its appreciation towards valuable
contribution made by Dr. D. V. Kapur during his tenure as a
Director of the Company.
Based on the recommendation of the Human Resources,
Nomination and Remuneration Committee, the Board has
recommended that Dr. Shumeet Banerji be appointed as an
Independent Director by the members for a term of 5 (five)
consecutive years.
The Company has received declarations from all the
Independent Directors of the Company and Dr. Shumeet
Banerji confirming that they meet the criteria of independence
prescribed under the Act and the Listing Regulations.
The following policies of the Company are attached herewith
marked as Annexure IV A and Annexure IV B:
a)
b)
Policy for selection of Directors and determining Directors
independence; and
Remuneration Policy for Directors, Key Managerial
Personnel and other employees.
PERFORMANCE EVALUATION
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, acquaintance with business, communicating inter
se board members, effective participation, domain knowledge,
compliance with code of conduct, vision and strategy,
benchmarks established by global peers, etc, which is in
compliance with applicable laws, regulations and guidelines.
The Board carried out annual performance evaluation of
the Board, Board Committees and Individual Directors and
Chairperson. 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 reports on performance evaluation of the Individual
Directors were reviewed by the Chairman of the Board.
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 230
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.
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. The
Company has received a certificate from the Auditors of the
Company that the Scheme has been implemented in accordance
with the SEBI (Share Based Employee Benefits) Regulations,
2014 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 SEBI
(Share Based Employee Benefits) Regulations, 2014 are put
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, the period of office of
Chaturvedi & Shah, Chartered Accountants, Deloitte Haskins &
Sells LLP, Chartered Accountants and Rajendra & Co., Chartered
Accountants, Statutory Auditors of the Company, expires at the
conclusion of the ensuing Annual General Meeting.
It is proposed to appoint S R B C & CO LLP, Chartered
Accountants and D T S & Associates, Chartered Accountants, as
Joint Auditors of the Company, for a term of 5 (five) consecutive
years. S R B C & CO LLP, Chartered Accountants and D T S &
Associates, Chartered Accountants, have confirmed their
eligibility and qualification required under the Act for holding
the office, as Statutory Auditors of the Company.
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.
COST AUDITORS
The Board appointed the following Cost Auditors for
conducting the audit of cost records of the Company for various
segments for the FY 2016-17:
(i) For Textiles Business - Kiran J. Mehta & Co., Cost
Accountants;
(ii) For Chemicals Business - Diwanji & Associates, Cost
Accountants, K.G. Goyal & Associates, Cost Accountants,
V.J. Talati & Co., Cost Accountants, Kiran J. Mehta & Co.,
Cost Accountants, Shri Suresh D. Shenoy, Cost Accountant,
Shome & Banerjee, Cost Accountants and Dilip M. Malkar &
Co., Cost Accountants;
(iii) For Polyester Business - V.J. Talati & Co., Cost Accountants,
Shri Suresh D. Shenoy, Cost Accountant, and V. Kumar &
Associates, Cost Accountants;
(iv) For Electricity Generation - Dilip M. Malkar & Co., Cost
Accountants;
(v) For Petroleum Business – Shri Suresh D. Shenoy, Cost
Accountant;
(vi) For Oil & Gas Business – V.J. Talati & Co., Cost Accountants
and Shome & Banerjee, Cost Accountants.
Shome & Banerjee, Cost Accountants, were nominated as the
Company’s Lead Cost Auditors.
SECRETARIAL AUDITOR
The Board appointed Dr. K.R. Chandratre, Practising Company
Secretary, to conduct Secretarial Audit for the FY 2016-17. The
Secretarial Audit Report for the financial year ended March 31,
2017 is annexed herewith marked as Annexure V 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 year.
Particulars 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.
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17 231
CORPORATE SOCIAL RESPONSIBILITY AND
GOVERNANCE COMMITTEE (CSR&G)
The CSR&G 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
Committee. The vigil mechanism and whistle blower policy is
put on the Company's website and can be accessed at:
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
recipient are provided in the standalone financial statement
Please refer Note 2, 3, 6, 9, 30 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 VI to
this Report.
EXTRACT OF ANNUAL RETURN
Extract of Annual Return of the Company is annexed herewith
as Annexure VII 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, as
amended, 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 also 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.
GENERAL
The Board of 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:
1. Details relating to deposits covered under Chapter V of the
2.
3.
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.
4. 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.
5. Neither the Managing Director nor the Whole-time
Directors of the Company receive any remuneration or
commission from any of its subsidiaries.
6. 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.
7. No fraud has been reported by the Auditors to the Audit
Committee or the Board.
ACKNOWLEDGEMENT
The Board of 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. The Boards of Directors also wish to place on record its
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, April 24, 2017
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 232
ANNEXURE I
DIVIDEND DISTRIBUTION POLICY
The Board of Directors (the “Board”) of Reliance Industries
Limited (the “Company”) at its meeting held on April 24, 2017
has adopted this Dividend Distribution Policy (the “Policy”) as
required by Regulation 43A of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (the “Listing
Regulations”).
OBJECTIVE
The objective of this Policy is to establish the parameters to be
considered by the Board of Directors of the Company before
declaring or recommending dividend.
The Company has had an uninterrupted dividend payout
since listing. In future, the Company would endeavor to pay
sustainable dividend keeping in view the Company’s policy of
meeting the long-term growth objectives from internal cash
accruals.
CIRCUMSTANCES UNDER WHICH THE
SHAREHOLDERS MAY OR MAY NOT EXPECT
DIVIDEND
The Board of Directors of the Company, while declaring or
recommending dividend shall ensure compliance with statutory
requirements under applicable laws including the provisions
of the Companies Act, 2013 and Listing Regulations. The Board
of Directors, while determining the dividend to be declared or
recommended shall take into consideration the advice of the
executive management of the Company and the planned and
further investments for growth apart from other parameters set
out in this Policy.
The Board of Directors of the Company may not declare or
recommend dividend for a particular period if it is of the view
that it would be prudent to conserve capital for the then
ongoing or planned business expansion or other factors which
may be considered by the Board.
PARAMETERS TO BE CONSIDERED BEFORE
RECOMMENDING DIVIDEND
The Board of Directors of the Company shall consider the
following financial / internal parameters while declaring or
recommending dividend to shareholders:
Profits earned during the financial year
Retained Earnings
Earnings outlook for next three to five years
Expected future capital / liquidity requirements
Any other relevant factors and material events
The Board of Directors of the Company shall consider
the following external parameters while declaring or
recommending dividend to shareholders:
Macro-economic environment - Significant changes in
macro-economic environment materially affecting the
businesses in which the Company is engaged in the
geographies in which the Company operates
Regulatory changes – Introduction of new regulatory
requirements or material changes in existing taxation or
regulatory requirements, which significantly affect the
businesses in which the Company is engaged
Technological changes which necessitate significant new
investments in any of the businesses in which the Company
is engaged
UTILISATION OF RETAINED EARNINGS
The Company shall endeavor to utilise the retained earnings
in a manner which shall be beneficial to the interests of the
Company and also its shareholders.
The Company may utilize the retained earnings for making
investments for future growth and expansion plans, for the
purpose of generating higher returns for the shareholders or
for any other specific purpose, as approved by the Board of
Directors of the Company.
PARAMETERS THAT SHALL BE ADOPTED WITH
REGARD TO VARIOUS CLASSES OF SHARES
The Company has issued only one class of shares viz. equity
shares. Parameters for dividend payments in respect of any
other class of shares will be as per the respective terms of issue
and in accordance with the applicable regulations and will be
determined, if and when the Company decides to issue other
classes of shares.
CONFLICT IN POLICY
In the event of any conflict between this Policy and the
provisions contained in the Listing Regulations, the Listing
Regulations shall prevail.
AMENDMENTS
The Board may, from time to time, make amendments to this
Policy to the extent required due to change in applicable laws
and Listing Regulations or as deemed fit on a review.
For and on behalf of Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 24, 2017
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
233
ANNEXURE II
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 2016-17:
Sr. No. Name of the Company
1
2
3
4
5
6
7
8
Cluster Commercials Private Limited
Devashree Commercial Private Limited
Dignity Mercantile Private Limited
Girisha Commercials Private Limited
Jio Payments Bank Limited
Reliance Commercial Dealers Limited
Reliance Commercial Trading Private Limited
Reliance LNG Limited
2. Companies/ Bodies Corporate which ceased to be subsidiaries during the financial year 2016-17:
Sr. No. Name of the Company
1
2
3
4
5
6
7
8
9
Gapco Kenya Limited
Gapco Tanzania Limited
Gapco Uganda Limited
Gapoil (Zanzibar) Limited
GenNext Holding Investments LLC
Gulf Africa Petroleum Corporation
Reliance do Brasil Indústria e Comércio de Produtos Têxteis, Químicos, Petroquímicos e Derivados Limiteda
Reliance Holding Acquisition Corp
Reliance USA Gas Marketing LLC
3. Companies/ Bodies Corporate which ceased to be a joint venture or associate during the financial year 2016-17.
Reliance LNG Limited which was associate of the Company has become subsidiary of the Company.
For and on behalf of Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 24, 2017
ANNEXURE III
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES FOR THE
FINANCIAL YEAR 2016-17
1.
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
Refer Section: Corporate Social
Responsibility (CSR) in the Board's Report
2.
3.
4.
5.
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
Refer Section: Disclosures: Corporate
Social Responsibility and Governance
Committee in the Board's Report
` 31,020.50 crore
` 620.41 crore
` 620.41 crore
` 659.20 crore
Not applicable
Details given below
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
234
DETAILS OF AMOUNT SPENT ON CSR ACTIVITIES DURING THE FINANCIAL YEAR 2016-17
Sr.
No
CSR project or activity
identified
Sector in which the
project is covered
(clause no. of schedule
VII to the Companies
Act 2013, as amended)
Projects or programs
1)
2)
Local area or other
Specify the State and district where
projects or programs was undertaken
Amount outlay
(budget) project
or program
wise
(` in crore)
Cumulative
expenditure upto
the reporting
period, i.e., March
31, 2017
(` in crore)
Amount spent
direct or through
implementing
agency
Amount spent on
the projects or
programs:
Sub Heads
(1)
Direct
expenditure
on projects
or programs
(2) Overheads
(` in crore)
40.26
32.39
203.77
Implementing
Agency -
Reliance
Foundation*
28.56
17.51
41.16
Implementing
Agency -
Reliance
Foundation*
1
Rural
Transformation – RF
BIJ – “Enhancing
Rural Livelihoods”
Cl (i) Eradicating
hunger, poverty
and malnutrition;
Cl (iv) ensuring
environmental
sustainability;
Cl (x) Rural
Development
Projects;
2
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"
Cl (i) Eradicating
hunger, poverty
and malnutrition;
Cl (iv) ensuring
environmental
sustainability;
Cl (x) Rural
Development
Projects;
1. Andhra Pradesh - District –
Kurnool, Vizianagaram
2. Chhattisgarh – District -
Rajnandgaon
3. Gujarat - District - Surat
4. Haryana – District – Rewari
5.
6. Karnataka – District – Gadag,
Jharkhand – District - Deogarh
Bidar
7. Madhya Pradesh – Agar,
Chhindwara, Seoni, Mandla,
Panna, Barwani, Hoshangabad
8. Maharashtra - District –
Parbhani, Yavatmal, Nagpur,
Mumbai
9. Odisha - District – Balangir
10. Rajasthan – District - Jaipur,
Sawai Madhopur, Banswara
11. Telangana – District - Nizamabad
12. Tamilnadu - District - Sivaganga
13. Uttarakhand – District –
Rudraprayag, Uttarkashi
1. Andhra Pradesh - District - East
Godavari, Krishna, Nellore,
Srikakulam, Visakhapatnam,
Vizianagaram, Kurnool, West
Godavari, Guntur, Prakasam,
Anantapur
2. Gujarat - District - Ahmedabad,
Bharuch, Gir Somnath, Junagadh,
Navsari, Patan, Sabarkantha,
Surendranagar, Valsad, Rajkot,
Kutch, Amreli, Porbandar,
Devbhoomi Dwarka
3. Maharashtra - District -
Akola, Amravati, Aurangabad,
Buldhana, Hingoli, Jalna,
Kolhapur, Mumbai, Nagpur,
Nanded, Parbhani, Raigad,
Ratnagiri, Sindhudurg, Wardha,
Wasim, Latur, Satara, Bhandara,
Gondia, Thane, Yavatmal
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17 Sr.
No
CSR project or activity
identified
Sector in which the
project is covered
(clause no. of schedule
VII to the Companies
Act 2013, as amended)
Projects or programs
1)
2)
Local area or other
Specify the State and district where
projects or programs was undertaken
Amount outlay
(budget) project
or program
wise
(` in crore)
235
Cumulative
expenditure upto
the reporting
period, i.e., March
31, 2017
(` in crore)
Amount spent
direct or through
implementing
agency
Amount spent on
the projects or
programs:
Sub Heads
(1)
Direct
expenditure
on projects
or programs
(2) Overheads
(` in crore)
4. Odisha - District - Baleshwar,
Bargarh, Bhubneshwar,
Jagatsinghpur, Ganjam,
Kendrapada, Puri, Bhadrak,
Sambalpur, Gajpati, Mayurbhanj
5. Tamilnadu - District - Ariyalur,
Chennai, Cuddalore, Dindigul,
Kanyakumari, Madurai,
Nagapattinam, Perambalur,
Pudukkottai, Ramanathapuram,
Sivaganga, Thanjavur,
Theni, Tirunelveli, Tiruvarur,
Trichy, Tuticorin, Villupuram,
Virudhunagar, Namakkal, Karur,
Kanchipuram, Thiruvannamalai
6. Kerala – District – Ernakulam,
Kollam, Kozhikode, Malapurram,
Wayanad, Alleppey
7. Karnataka – District – Udupi
8. Madhya Pradesh – District –
Bhopal, Chhindwara, Dindori,
Sehore, Umaria, Seoni, Shahdol,
Jabalpur
9. Rajasthan – District – Udaipur
10. Daman and Diu – District –
Daman, Diu
11. Telangana – District –
Khammam
12. Puducherry – District –
Puducherry, Karaikal
13. West Bengal – District – Kolkata
1. Andhra Pradesh - District - East
Godavari
7.95
3.93
5.77
1. Andhra Pradesh - District - East
6.68
6.28
10.29
Godavari
Implementing
Agency -
Reliance
Foundation*
Implementing
Agency -
Reliance
Foundation*
3
4
Skilling,
Entrepreneurship
and Alternate
Livelihoods
Community
Development
Cl (ii) Promoting
Education ,
Cl (x) Rural
Development
Projects
Cl (i) Promoting
Education
Cl (x) Rural
Development
Projects
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 236
Sr.
No
CSR project or activity
identified
Sector in which the
project is covered
(clause no. of schedule
VII to the Companies
Act 2013, as amended)
Projects or programs
1)
2)
Local area or other
Specify the State and district where
projects or programs was undertaken
Amount outlay
(budget) project
or program
wise
(` in crore)
Cumulative
expenditure upto
the reporting
period, i.e., March
31, 2017
(` in crore)
Amount spent
direct or through
implementing
agency
Amount spent on
the projects or
programs:
Sub Heads
(1)
Direct
expenditure
on projects
or programs
(2) Overheads
(` in crore)
5
Disaster Relief
Cl (x) Rural
Development
Projects
1. Maharashtra - District - Beed,
Latur, Jalna, Nanded, Hingoli,
Aurangabad, Mumbai
2. Madhya Pradesh - District -
Mandla, Satna, Rewa, Panna
3. Uttarakhand - District -
Rudraprayag, Uttarakashi
14.16
10.56
27.08
6
7
8
Cl (i) Eradicating
hunger, poverty
and malnutrition;
Cl (iv) ensuring
environmental
sustainability;
Cl (x) Rural
Development
Projects;
Cl. (i) Promoting
health care
including
preventive health
care
Rural
Transformation -
Partnerships with
Non- Government
Organisations
Health Outreach
Programme II -
"Static, Mobile
Medical Units and
camps for primary
and preventive
healthcare including
diagnostics"
Health - Drishti
"Corneal transplant
and other activities
for visually
impaired"
Cl (i) Promoting
health care
including
preventive health
care
1. Maharashtra - District - Mumbai,
12.50
12.65
12.65
Thane
1. Maharashtra - District - Mumbai,
5.75
6.67
14.41
Nashik, Thane
2. Delhi - District – New Delhi
3. Andhra Pradesh - District -
Warangal, Kurnool
4. Gujarat - District - Bharuch,
Jamnagar, Valsad
5. Madhya Pradesh - District -
Panna, Chhindwara
6. Karnataka - District - Bidar,
7. Rajasthan - District - Sawai
Madhopur, Udaipur
8. Jharkhand - District - Deogarh
9. Chhattisgarh - District -
Rajnandgaon
10. Uttarakhand - District -
Rudraprayag
1. Maharashtra - District - Jalgaon,
2.00
1.86
4.41
Nagpur, Mumbai
2. Gujarat - District - Bharuch
3. Bihar - District - Munger
4. West Bengal - District - Kolkata
5. Tamilnadu - District - Madurai,
Chennai
6. Punjab - District - Ludhiana
7. Delhi - District – New Delhi
8. Telangana - District - Hyderabad
9. Karnataka - District - Banglore
Implementing
Agency -
Reliance
Foundation*
Implementing
Agency -
Reliance
Foundation*
Implementing
Agency -
Reliance
Foundation*
Implementing
Agency -
Reliance
Foundation*
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17 Sr.
No
CSR project or activity
identified
Sector in which the
project is covered
(clause no. of schedule
VII to the Companies
Act 2013, as amended)
Projects or programs
1)
2)
Local area or other
Specify the State and district where
projects or programs was undertaken
Amount outlay
(budget) project
or program
wise
(` in crore)
237
Cumulative
expenditure upto
the reporting
period, i.e., March
31, 2017
(` in crore)
Amount spent
direct or through
implementing
agency
Amount spent on
the projects or
programs:
Sub Heads
(1)
Direct
expenditure
on projects
or programs
(2) Overheads
(` in crore)
9
Health - "to
develop innovative
technology that
will help train
medical students
and clinicians for
better diagnosis
and improved
healthcare"
10 Health - Sir HN
Reliance Foundation
Hospital and
Research Centre
11 Health Programme
- Mother & Child
Health
12 Health - Lodhivali
Hospital & Art Clinic
13 Health - Partnership
with Non-
Government
Organisations
14
Education - DA
Scholarship
Programme
Cl (i) Promoting
health care
including
preventive health
care
Cl (i) Promoting
health care
including
preventive health
care
Cl (i) Promoting
health care
including
preventive health
care
Cl(i) Promoting
health care
including
preventive health
care
Cl (i) Promoting
health care
including
preventive health
care
Cl (ii) Promoting
Education
10. Chhattisgarh - District - Raipur
11. Madhya Pradesh - District -
Bhopal
12. Uttarakhand - District -
Dehradun
1. Maharashtra - District - Mumbai
2.16
0.83
51.50
1. Maharashtra - District - Mumbai
204.00
228.46
1,030.37
1. Rajasthan – District - Banswara
0.41
0.20
0.98
& Sawai Madhopur
2. Maharashtra – District -
Gangakhed, Yavatmal
3. Gujarat – District - Bharuch,
Rajkot
4. Madhya Pradesh – District -
Chhindwara & Seoni
1. Maharashtra - District - Raigad
3.61
4.26
5.55
7.50
1.76
14.08
2.26
2.13
8.64
1. Maharashtra – District -
Mumbai, Nashik, Thane
2. Gujarat – District - Valsad,
Ahmedabad
3. Delhi – District - New Delhi
4. Rajasthan – District - Udaipur
1. Maharashtra - District - Mumbai
2. Kerala - District - Cochin
3. Goa - District - North Goa,
South Goa
4. Uttarakhand - District -
Rudraprayag, Uttarakashi
5. Gujarat - District - Gandhinagar
6. Tamilnadu - District - Chennai
7. Delhi – District - New Delhi
Implementing
Agency -
Reliance
Foundation*
Implementing
Agency -
Reliance
Foundation*
Implementing
Agency -
Reliance
Foundation*
Implementing
Agency -
Reliance
Foundation*
Implementing
Agency -
Reliance
Foundation*
Implementing
Agency -
Reliance
Foundation*
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 238
Sr.
No
CSR project or activity
identified
Sector in which the
project is covered
(clause no. of schedule
VII to the Companies
Act 2013, as amended)
Projects or programs
1)
2)
Local area or other
Specify the State and district where
projects or programs was undertaken
Amount outlay
(budget) project
or program
wise
(` in crore)
Cumulative
expenditure upto
the reporting
period, i.e., March
31, 2017
(` in crore)
Amount spent
direct or through
implementing
agency
Amount spent on
the projects or
programs:
Sub Heads
(1)
Direct
expenditure
on projects
or programs
(2) Overheads
(` in crore)
15
Education - Reliance
University
Cl (ii) Promoting
Education
1. Maharashtra - District - Raigad
154.94
158.46
286.12
16 Digital Education
Initiatives
Cl (ii) Promoting
Education
including Special
Education
17
Education –
Partnership with
Non-Government
Organisations
Cl (ii) Promoting
Education
18
Sports - Reliance
Foundation Jr. NBA
Programme
Cl (vii) Training
to promote rural
sports, Nationally
recognized sports
19
Sports - RF Young
Champs
Environment - RF
- Urban Renewal
Initiatives
20
21
Cl (vii) Training
to promote rural
sports, Nationally
recognized sports
Cl (iv) Ensuring
environmental
sustainability,
ecological balance
Promoting
Traditional Arts and
Culture
Cl (v) Protection of
national heritage,
art & culture
1. Andhra Pradesh - District -
Anantapur, Chittoor, Guntur,
Kadapa, Krishna, Kurnool,
Prakasam, Srikakakulam,
Visakhapatanam, East Godavari,
Nellore, Warangal, Vizianagaram
2. Gujarat - District – Junagadh,
Mehsana, Vadodara, Ahmedabad
3. Madhya Pradesh - District -
Shahdol
4. Telangana – District -
Khammam, Ranga Reddy
1. Maharashtra – District - Mumbai
2. Delhi - District – New Delhi
3. Kerala - District - Kochi
4. Goa - District - Goa
5. Gujarat - District - Gandhinagar
6. Uttarakhand - District -
Rudraprayag, Uttarkashi
1. Kerala - District - Kottayam,
Kochi
2. Punjab - District - Ludhiana,
Jalandhar
3. Delhi - District – New Delhi
4. Maharashtra - District - Mumbai
5. West Bengal - District - Kolkata
6. Tamil Nadu - District - Chennai
1. Maharashtra - District - Mumbai
2.00
1.40
3.70
32.79
31.64
72.79
2.60
2.82
10.49
3.40
2.18
7.17
1. Maharashtra - District - Mumbai,
1.00
2.91
3.86
Nashik
2. Himachal Pradesh - District -
Shimla
1. Maharashtra - District - Mumbai
1.00
1.01
1.29
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*
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17 Sr.
No
CSR project or activity
identified
Sector in which the
project is covered
(clause no. of schedule
VII to the Companies
Act 2013, as amended)
Projects or programs
1)
2)
Local area or other
Specify the State and district where
projects or programs was undertaken
Amount outlay
(budget) project
or program
wise
(` in crore)
239
Cumulative
expenditure upto
the reporting
period, i.e., March
31, 2017
(` in crore)
Amount spent
direct or through
implementing
agency
Amount spent on
the projects or
programs:
Sub Heads
(1)
Direct
expenditure
on projects
or programs
(2) Overheads
(` in crore)
1. Gujarat - District - Jamnagar
18.07
17.49
17.49
15.00
21.86
21.86
Implementing
Agency -
Reliance
Foundation*
Implementing
Agency -
Reliance
Foundation
Youth Sports**
54.00
25.72
80.77 Direct
7.00
12.55
49.85 Direct
22 Other CSR Initiatives
- at manufacturing
locations
Various Cl. of
Schedule VII
23
Promoting
Grassroot Sports
Cl (vii) Training
to promote rural
sports, nationally
recognised sports.
(Grassroots)
24
Education - CSR
at manufacturing
locations
Cl. (ii) Promoting
Education
25 Health - CSR at
manufacturing
locations
CL (i) Promoting
Preventive
Healthcare
1. Maharashtra – District -
Mumbai, Thane, Pune
2. Goa – District - South Goa
3. Kerala – District - Kochi
4. Tamil Nadu – District - Chennai
5. Assam – District - Guwahati
6. West Bengal – District - Kolkata,
Hoogly, North 24 Parganas,
Nadia, Paschim Medinipur
7. Haryana – District - Gurgaon,
Faridabad
8. Uttar Pradesh – District - Noida,
1.
2.
3.
4.
Ghaziabad
Gujarat - District - Bharuch,
Surat, Jamnagar, Vadodara
Maharashtra - District -
Nagpur, Raigad
Andhra Pradesh - District -
East Godavari
Uttar Pradesh - District -
Barabanki
1.
2.
5. Punjab - District - Hoshiarpur
Madhya Pradesh - District-
6.
Shahdol
Gujarat - District - Bharuch,
Surat, Jamnagar, Ahmedabad,
Vadodara
Maharashtra - District -
Nagpur, Raigad
Andhra Pradesh - District-East
Godavari
Uttar Pradesh - District -
Allahabad, Barabanki
Punjab - District-Hoshiarpur
Madhya Pradesh - District -
Shahdol
5.
6.
4.
3.
7. UT-Dadra & Nagar Haveli
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 240
Sr.
No
CSR project or activity
identified
Sector in which the
project is covered
(clause no. of schedule
VII to the Companies
Act 2013, as amended)
Projects or programs
1)
2)
Local area or other
Specify the State and district where
projects or programs was undertaken
Amount outlay
(budget) project
or program
wise
(` in crore)
Cumulative
expenditure upto
the reporting
period, i.e., March
31, 2017
(` in crore)
Amount spent
direct or through
implementing
agency
Amount spent on
the projects or
programs:
Sub Heads
(1)
Direct
expenditure
on projects
or programs
(2) Overheads
(` in crore)
26 Community
Development - CSR
at manufacturing
locations
Cl (x) Rural
Development
Projects.
27
Sports
Development - CSR
at manufacturing
locations
28 Other Initiatives
- CSR at
manufacturing
locations
Cl (vii) Training
to promote rural
sports, nationally
recognised sports.
Various Cl. Of
Schedule VII
1.
2.
3.
4.
5.
6.
Gujarat - District - Bharuch,
Surat, Jamnagar, Ahmedabad,
Vadodara
Maharashtra - District -
Nagpur, Raigad
Andhra Pradesh - District-East
Godavari
Uttar Pradesh - District -
Allahabad, Barabanki
Punjab - District-Hosiarpur
Madhya Pradesh - District -
Shahdol
7. UT-Dadra & Nagar Haveli
1.
Andhra Pradesh - District -
East Godavari, Kakinada
1.
2.
3.
4.
5.
6.
Gujarat - District - Bharuch,
Surat, Jamnagar, Ahmedabad,
Vadodara
Maharashtra - District -
Nagpur, Raigad
Andhra Pradesh - District-East
Godavari
Uttar Pradesh - District -
Allahabad, Barabanki
Punjab - District-Hosiarpur
Madhya Pradesh - District -
Shahdol
7. UT-Dadra & Nagar Haveli
Total - Direct Expenditure
Total - Overheads
Grand Total
8.60
37.96
40.95 Direct
0.00
0.03
0.07 Direct
0.40
3.74
12.85 Direct
638.60
14.40
653.00
649.26
9.94
659.20
2,039.92
31.41
2,071.33***
* 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.
** Reliance Foundation Youth Sports (RFYS) is a company within the meaning of Section 8 of the Companies Act, 2013 and has a comprehensive approach towards
development of grassroot sports.
*** The above mentioned cumulative total includes only the above mentioned projects. There were additional projects which are not included in the total.
Some CSR activities have been carried out with the support of several other Non-Government Organisations or charitable institutions.
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
241
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.’
Yogendra P. Trivedi
Chairman, CSR&G Committee
Nikhil R. Meswani
Executive Director
Mumbai, April 24, 2017
ANNEXURE IV A
POLICY FOR SELECTION OF DIRECTORS
AND DETERMINING DIRECTORS’
INDEPENDENCE
1.
INTRODUCTION:
1.1
Reliance Industries Limited (RIL) believes 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.
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.
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.
3.2
“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”).
3.3
“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:
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;
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;
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
242
Shall endeavour 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 a 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 its holding, subsidiary or
associate company;
c.
(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;
-
d.
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
(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,
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
administration, research, corporate
governance, technical operations, corporate
social responsibility or other disciplines
related to the company’s business.
g.
shall possess such other qualifications as may
be prescribed, from time to time, under the
Companies Act, 2013.
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 Director and making
its recommendations to the Board.
ANNEXURE IV B
REMUNERATION POLICY FOR DIRECTORS,
KEY MANAGERIAL PERSONNEL AND OTHER
EMPLOYEES
1.
INTRODUCTION:
1.1
Reliance Industries Limited (RIL) recognises the
importance of aligning the business objectives with
specific and measureable individual objectives and
targets. The 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 the level and composition of
remuneration is reasonable and sufficient to
attract, retain and motivate, to run the company
successfully.
1.1.2 Ensuring that relationship of remuneration to
performance is clear and meets the performance
benchmarks.
1.1.3 Ensuring that remuneration involves a balance
between fixed and incentive pay reflecting
243
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 Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 24, 2017
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;
the Company Secretary;
(ii)
(iii) the Whole-time Director;
(iv) the Chief Financial Officer; and
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
244
(v)
such other officer as may be prescribed under the
Companies Act, 2013
3.3
“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 and Key Managerial Personnel shall
include the following components:
(i) Basic Pay
(ii) Perquisites and Allowances
(iii) Stock Options
(iv) Commission (Applicable in case of Executive
Directors)
(v) Retiral benefits
(vi) Annual Performance Bonus
ANNEXURE V
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2017
[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
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai – 400 021
I have conducted the secretarial audit of the compliance of
applicable statutory provisions and the adherence to good
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 Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 24, 2017
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 the financial year ended on 31 March 2017
(‘Audit Period’) complied with the statutory provisions listed
hereunder and also that the Company has proper Board-
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
245
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 31 March 2017 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;
(i)
(ii)
Secretarial Standards issued by The Institute of
Company Secretaries of India; and
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:
(iv) Foreign Exchange Management Act, 1999 and the rules
(a)
Merchant Shipping Act, 1958 and Rules made thereunder;
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) The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
(b)
(c)
(d)
(e)
(f )
The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 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;
(g) The Securities and Exchange Board of India (Delisting
of Equity Shares) Regulations, 2009 (Not applicable to
the Company during the Audit Period);
(h)
(i)
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.
(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. There were
no changes in the composition of the Board of Directors during
the period under review.
Adequate notice is given to all directors to schedule the Board
Meetings. Except where consent of the directors was received
for scheduling meeting at a shorter notice, agenda and detailed
notes on agenda were sent at least seven days in advance. 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 Committees 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 ` 133 crore
as per the terms of issue.
I have also examined compliance with the applicable clauses of
the following:
Dr. K R Chandratre
Place: Pune
FCS No. 1370, C P No: 5144
Date: April 24, 2017
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
246
ANNEXURE VI
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 security has always been one of the key components of
RIL’s business strategy and also one of the biggest challenges
encountered globally. With the commissioning of coal based
power plants at Dahej and Hazira in FY 2016-17, the Company
is now better equipped to benefit from volatile fuel prices and
optimise energy cost.
The Company’s systems and processes ensure optimum energy
usage by continuous monitoring of all forms of energy and
increasing the efficiency of operations.
On the energy conservation front, the Company continues its
thrust on improving energy efficiency through adoption of new
technology and optimisation of operation, thereby reducing
energy cost. The Company spent ` 222.83 crore as capital
investment towards procurement and installation of energy
efficient equipment.
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 and initiatives taken during
the FY 2016-17
Refining & Marketing
Jamnagar manufacturing division (DTA)
Installation of heat recovery system from flue gasses to
preheat combustion air for three heaters in Coker plant and
increase heater efficiency.
Increased heat recovery from Naphtha Splitter (NS) bottom
stream to High Pressure Boiler Feed Water (HP-BFW) and
reduce Medium Pressure (MP) steam consumption.
Installation of new flue gas cooler in Fluid Catalytic Cracker
Unit (FCCU) resulting in additional steam generation.
Reduction of power recovery train wind-milling steam with
low pressure steam line modification.
Increased heat recovery from Clarified Slurry Oil (CSO) and
Light Cycle Oil (LCO) streams to preheat cold feed and boiler
feed water by modifying heat exchanger network in FCCU.
Increased heat recovery from Hydrogen plant to preheat
Boiler Feed Water.
Naphtha Splitter column is refurbished with divided wall
column technology to reduce energy consumption in
distillation.
Routing propylene from Propylene Recovery unit (PRU)
directly to Polypropylene (PP) unit and reduce pumping
power consumption.
Medium Pressure Boiler Feed Water (MP-BFW) preheating
by heat recovery from by Ortho-Xylene product.
Jamnagar manufacturing division (SEZ)
Installation of heat exchanger to increase medium pressure
steam generation in Diesel Hydro Desulfurisation unit.
Increased heat recovery from Clarified Slurry Oil (CSO)
and Light Cycle Oil (LCO) streams to preheat cold feed and
boiler feed water by modifying heat exchanger network in
FCCU and reducing steam consumption.
Refurbishment of the Platformer heater in Heavy Naphtha
Unionfining Unit (HNUU) resulting in increased heat
recovery from flue gasses.
Petrochemicals
Hazira manufacturing division
Combustion and air optimisation in cracker furnaces by
reducing lower speed limit of the Induced Draft (ID) fan,
resulting in fuel gas consumption reduction.
Reflux flow optimisation and pressure reduction in
Benzene Column resulted in Medium Pressure (MP) steam
consumption reduction in Aromatics plant.
Installation of new pressure control system in benzene tower
for reduction of medium pressure steam in aromatics plant.
Stoppage of cooling tower fan in butane plant resulted in
power consumption reduction.
Installation of Advanced Process Control (APC) in butane-1
plant resulted in reduced steam consumption.
Reflux optimisation in Para Di-ethyl benzene plant resulted
in High Pressure (HP) steam consumption reduction in
Aromatics plant.
Reduction in Low Pressure (LP) steam consumption
by increasing heat recovery via Solvent Exchanger in
Butadiene plant.
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
247
Installation of additional LP steam pipelines to increase
Steam export from Purified Terephthalic Acid plant (PTA).
Installation of closed loop condensate system at GCU for
increased recovery of condensate.
Installation of flash vessel to generate Intermediate
Pressure (IP) steam from High Pressure (HP) condensate.
Installation of high efficiency air preheater for hot-oil
vaporiser resulting in reduction of fuel gas consumption in
Poly-Ethylene (PE) Plant.
Provision of soft switch in Styrene Butadiene Rubber (SBR)
unit for operating dryer conveyor during cleaning resulting
in power consumption reduction.
Reduction in diameter of Vinyl Chloride Monomer (VCM)
hi-boil column bottom-up pump impeller resulted in power
reduction.
Nagothane manufacturing division
Low pressure condensate recovery in the Gas Cracker (GC)
Optimisation of the main steam header pressure at Captive
Power Plant (CPP).
Installed a small air compressor and switched-off of a
bigger compressor to avoid venting and reduce power
consumption.
Stoppage of nitrogen compressor in Air Separation Plant
through improved Nitrogen stock Management to reduce
power consumption.
Patalganga manufacturing division
Impeller replacement and corrosion proof coating in
cooling tower pumps resulted in efficiency improvement
and reduction in power consumption.
Refurbishment of Air Pre-Heater (APH) of the back end
heaters in Linear Alkyl Benzene (LAB) plant to reduce fuel
consumption.
Effluent recycle from Demineralisation plant to
Demineralisation Reverse osmosis resulted in reduction of
filter water consumption.
Replacement of burner tips with new energy efficient ones
in stripper reboiler furnace of Para-Xylene (PX) plant and
increase furnace efficiency.
Replacement of DH Column Fin Fan condenser blades with
high efficiency fans to reduce power consumption.
Vadodara manufacturing division
Drying column feed preheating with column bottom
product resulted in steam consumption reduction.
Control system modification in deaerator of Gas Turbine
Power Plant (GTPP) to increase heat recovery from
Poly-Butadiene Rubber (PBR) plant and reduce steam
consumption.
Dahej manufacturing division
Installation of Hydraulic Power Recovery Turbine (HPRT)
to generate electrical power from hydraulic pressure
reduction.
Interconnected High Pressure (HP) and Low Pressure
(LP) air headers to reduce air venting and to stop one air
compressor.
Power consumption reduction by stoppage of one amine
booster pump in Ethylene Propylene Recovery Unit (EPRU)
Refurbishment of condensate stripper in Gas Cracker Unit
(GCU) for reduced steam and power consumption.
Replacement of internal packings of paraffin column
in Linear Alkyl Benzene plant and reduce energy
consumption in the distillation column reboiler.
Other initiatives taken at various manufacturing divisions
Replacement of old motors with Energy efficient motors in
Barabanki and Hoshiarpur Manufacturing Divisions.
Replacement of Fluorescent tube lights with LED lights in
Barabanki and Naroda Manufacturing Divisions.
Installations of an Energy efficient boiler and air
compressor to replace old ones for saving energy at Naroda
Manufacturing Division.
(II) STEPS TAKEN BY THE COMPANY FOR UTILISING
ALTERNATE SOURCES OF ENERGY
Rooftop solar photo voltaic projects are being installed
across RIL manufacturing units.
Innovative applications of renewable energy such as
solar thermal integration with manufacturing processes,
biomass co-firing etc are being evaluated.
Biogas generation facilities being installed at various sites
to process organic waste.
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
248
(III) THE CAPITAL INVESTMENT ON ENERGY CONSERVATION EQUIPMENT
Sr. No.
Manufacturing Division
(I)
1
2
(II)
3
4
5
6
7
8
Jamnagar manufacturing division (DTA)
Jamnagar manufacturing division (SEZ)
Hazira manufacturing division
Vadodara manufacturing division
Dahej manufacturing division
Nagothane manufacturing division
Patalganga manufacturing division
Other manufacturing divisions
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.
Research and technology at Reliance focuses on (i) new
products, processes and catalyst development to support
existing businesses and create breakthrough technologies
for new businesses, (ii) advanced troubleshooting, and
(iii) support to capital projects, and profit and reliability
improvements in manufacturing plants.
1)
MAJOR EFFORTS MADE TOWARDS
TECHNOLOGY ABSORPTION
Refining & Marketing
Profitable disposal of gasifier slag and value creation
by extraction of nickel and vanadium from slag.
Multi-functional sulfur soil nutrient for enhancing crop
quality and yield as sodic soil amendment.
Development of low cost Carbon dioxide adsorbent
and capture process.
Development of the process for direct synthesis of
dimethyl carbonate from Carbon dioxide.
Benzene extraction process from olefinic fluidised
catalytic cracking (FCC) gasoline.
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).
Capital investments
on energy efficient
equipment’s
(`Crores)
Energy savings
(Gcal/hr)
Financial
saving
(` In crore
per Annum)
126.5
15.35
5.64
64.67
6.08
0.07
1.33
3.19
34.58
45.9
12.41
6.27
4.26
10.71
2.43
58.29
62.64
83.16
20.20
11.38
8.69
18.57
4.83
2.93
Development of Zeolite Socony Mobil–5 (ZSM-5)
additive (RMP-5) to improve propylene yield in the
FCC.
Accelerated deactivation protocol for Vacuum gas oil
Hydro treating unit (VGOHT) catalyst.
Fast characterisation of crude using Near-infrared (NIR)
to provide assay update support.
In-house corrosion model developed to estimate true
corrosivity of crude to optimise crude purchases.
In-house RIL platformer model developed and is being
used to maximise value of C5-C12 pool.
Development of in-house RIL model for VGOHT is
started.
Petrochemicals
Development of a Reliance proprietary process to
manufacture Chlorinated Polyvinyl Chloride (CPVC) resin.
Development of Reliance proprietary catalyst for
reforming, dehydrogenation of hydrocarbons.
Development of novel speciality materials like self-
healing elastomers for extended life of a tire.
Development of high strength fiber and film for
ballistic armours.
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.
Purification of crude terephthalic acid using ionic
liquids based technology to significantly reduce
operations and capital cost.
Removal of oxygenates and Carbon di-sulphide (CS2)
from petrochemical naphtha.
Novel processes for production of polymer monomers
such 1-hexene, butadiene.
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
249
Homo grade polypropylene development through
Reliance proprietary catalyst system for better operational
reliability and higher performance of products.
HDPE process and product quality enhancement for
bimodal HDPE.
Modifications in styrene butadiene rubber process
improvement and product quality enhancement.
Novel halo butyl process development and next
generation products for niche applications.
Hybrid sulfur polymers development for construction
and coating sectors.
Biodegradable polyalyl carbonates polymerisation
using carbon dioxide as raw material.
Novel polypropylene product development ranging
from medium to high molecular weight for niche
applications.
Metallocene polyethylene (PE) products and process
development for packaging applications.
Self-adhesive material development for health sector.
Self-healing halo butyl rubber development.
Successful development and commercialisation of
opaque polyethylene terephthalate (PET) resin mainly
for specialty milk products and ultra-high temperature
milk packaging applications.
Successful development of Extrusion Blow Moulding
(EBM) grade of PET.
Successful development and commercialisation of low
antimony PET for fiber applications.
Design, development and installation of
manufacturing facility for eco-friendly polyester
polymerisation catalyst at Hazira. The catalyst required
is manufactured for in-house consumption.
Development of sparkle polyester fibre for fancy yarn
and development of fine denier hollow fibre for winter
wear.
Polyester fibre developed for Acquisition Distribution
Layer (ADL) application.
Development of specialty polyester fibre for asbestos
replacement.
Development of RecoSilk® polyester fibre and filament
for low temperature dyeing for handloom sector.
2.
Development of polymerisation reactor models
and their utilisation in polyester plants for process
optimisation / troubleshooting.
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 to enhance the
productivity of biofuels species.
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, synthetic biology, high
throughput screening and metabolic flux analysis for
biomolecule production.
Developed a web portal (algorithm) for predicting
genes for improving industrial traits for biofuel
production.
Other R&D Activities
Development of indigenous Polymer Electrolyte
Membrane (PEM) fuel cell technology.
Work is underway to develop a technology to produce
methane from unminable, underground coal reserves.
If the technology is successful, it will help increase
production of coal-bed methane.
One step process for production of Carbon Nano Tubes
(CNT) for non-woven mats (NWM), composites and
fibre.
Advance Process Control (APC)/ Real Time
Optimisation (RTO) implementation in all our major
manufacturing facilities.
Modelling and simulation, scale up support and
advance trouble shooting.
Development and use of online soft sensor for I.V.
measurement in SSP reactor.
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 2016-17 is approximately ` 295 crore.
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
250
3.
INFORMATION REGARDING IMPORTED TECHNOLOGY (IMPORTED DURING LAST THREE YEARS)
Details of technology imported
Technology
import from
AMT-ADP process for azeotropic distillation AMT, USA
Halogenated Isobutylene Isoprene Rubber
(HIIR), JV with Sibur
Yarsintez, Russia
Year of
import
2015-16
2015-16
Status implementation / absorption
Design and construction under progress
Basic engineering package is completed.
SSP and IDY Spinning
Ethylene (Cracker) – Ethane feed flexibility
project
Dalian, China and
TMT, Japan
Technip, Houston
2015-16
Plant under commissioning
2014-15
Engineering, execution and start-up completed at
Dahej. At Hazira and Nagothane engineering
completed and construction close to completion.
Synthetic natural gas (SNG)
Hydro treatment of extract
Impact Reactor facility at JMD DTA PP line B WR Grace
Johnson Matthey, UK 2014-15
Plant under design and construction
Axens, France
2014-15
2014-15
Plant under construction
Plant construction nearing completion
4. EXPENDITURE INCURRED ON RESEARCH AND DEVELOPMENT
Sr. No. Particulars
a)
b)
Capital
Revenue
Total
₹ in crore
593
855
1,448
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.
During the year, the Company has exports (FOB value) worth ₹ 1,38,856 crore (US$ 21.4 billion).
(II) TOTAL FOREIGN EXCHANGE EARNED AND USED
Foreign Exchange earned in terms of actual inflows
Foreign Exchange outgo in terms of actual outflows
₹ in crore
1,39,131
1,79,949
Note: Actual inflows does not includes total savings in Foreign Exchange through products manufactured by the Company and deemed exports amounting to
₹ 75,568 crore (US$ 11.7 billion)
For and on behalf of Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 24, 2017
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
251
ANNEXURE VII
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
As on the financial year ended on March 31, 2017
[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
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 (from 9:00 a.m.
to 6:00 p.m.)
Fax: +91 40 67161680
II.
III.
IV.
i)
ii)
iii)
iv)
v)
V.
VI.
A.
B.
C.
VII.
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
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 A
As per Attachment B
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
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 252
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.
1
2
*
#
Name and Description of
main products/services
Refining
Petrochemicals
NIC Code of the product/service *
192- Manufacture of refined petroleum products
201- Manufacture of basic chemicals, fertilizers and nitrogen
compounds, plastic and synthetic rubber in primary forms
% to total turnover
of the company #
67.72
31.00
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
Address of Company
CIN/GLN
CORPORATE
Name of Company
Sr.
No.
1.
Affinity Names, Inc
2.
Aurora Algae Inc
3.
4.
5.
6.
7.
8.
9.
10.
Aurora Algae Pty Ltd
Aurora Algae RGV LLC
Central Park
Enterprises DMCC
Cluster Commercial
Private Limited
Delta Corp East Africa
Limited
Devashree
Commercials Private
Limited
Dignity Mercantile
Private Limited
Ethane Crystal LLC
11.
Ethane Emerald LLC
12.
Ethane Opal LLC
Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware 19901
2000W Sam Houston Parkway S, Suite
700, Houston, Texas 77042
Level 3, 679 Murray Street, West Perth,
WA 6005.
206 East 9th Street, Suite 1300, Austin,
Texas 78701
Unit No. 1801-B, JBC 3,
Plot No JLT-PH2-Y1A,
Jumeirah Lakes Towers, Dubai U.A.E
506, Chiranjiv Tower 43, Nehru Place,
New Delhi 110019
L. R. No.1870 / II /236, The Pride Rock,
No. 6, Donyo Sabuk Avenue, Off General
Mathenge Drive, P.O. Box 69952- 00400,
Nairobi
3rd Floor, 77-B, IFFCO Road, Sector-18,
Gurgaon 122015
506, Chiranjiv Tower 43, Nehru Place,
New Delhi 110019
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.
*
Representing aggregate % of the shares held by the Company and/or its subsidiaries
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)
-
-
-
-
-
U74140DL2013PTC253524
Subsidiary
100.00
2(87)(ii)
-
Subsidiary
58.80
2(87)(ii)
U51900HR2007PTC057424
Subsidiary
100.00
2(87)(ii)
U74140DL2013PTC253542
Subsidiary
100.00
2(87)(ii)
-
-
-
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
Name of Company
Address of Company
CIN/GLN
Sr.
No.
253
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)
-
-
-
U51101HR2007PTC058664
Subsidiary
100.00
2(87)(ii)
U51109MH2007PTC176254
Subsidiary
100.00
2(87)(ii)
U65999MH2016PLC287584
Subsidiary
70.00
2(87)(ii)
U52599MH2007PLC176414
Subsidiary
90.67
2(87)(ii)
U70109HR2006PLC036416
Subsidiary
100.00
2(87)(ii)
-
Subsidiary
100.00
2(87)(ii)
U35300MH2008PLC186471
Subsidiary
100.00
2(87)(ii)
U01119MH2006PTC162902
Subsidiary
100.00
2(87)(ii)
U23200MH1993PLC190934
Subsidiary
100.00
2(87)(ii)
U51900MH2007PLC174470
Subsidiary
75.56
2(87)(ii)
U24110MH1990PLC059590
Subsidiary
100.00
2(87)(ii)
U17120MH2008PTC180384
Subsidiary
94.40
2(87)(ii)
U51909MH2006PLC166162
Subsidiary
100.00
2(87)(ii)
U51109MH2008PLC185389
Subsidiary
100.00
2(87)(ii)
U51909MH2006PTC166164
Subsidiary
100.00
2(87)(ii)
13.
Ethane Pearl LLC
14.
Ethane Sapphire LLC
15.
Ethane Topaz LLC
16. Girisha Commercials
Private Limited
Indiawin Sports Private
Limited
17.
18.
19.
Jio Payments Bank
Limited
Kanhatech Solutions
Limited
20. Model Economic
Township Limited
(Formerly known as
Reliance Haryana SEZ
Limited)
Recron (Malaysia) Sdn
Bhd
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
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
Dealers Limited
Reliance Commercial
Land & Infrastructure
Limited
Reliance Commercial
Trading Private Limited
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.
3rd Floor, 77-B, IFFCO Road,
Gurgaon 122015
3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai – 400002
3rd Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai - 400 021
5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai – 400002
3rd Floor, 77-B, IFFCO Road,
Sector-18, Gurgaon-122015
Level 7, Wisma Goldhill,
67, Jalan Raja Chulan,
50200 Kuala Lumpur, Malaysia
9th Floor, Maker Chambers IV, 222
Nariman Point, Mumbai - 400 021
4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400021
9th Floor, Maker Chambers IV, 222
Nariman Point, Mumbai - 400 021
5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai – 400 002
9th Floor, Maker Chambers IV, 222
Nariman Point, Mumbai - 400 021
Court House, 3rd Floor,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai – 400002
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400021
4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400002
4th Floor, Court House Lokmanya Tilak
Marg, Dhobi Talao Mumbai - 400002
*
Representing aggregate % of the shares held by the Company and/or its subsidiaries
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
254
Sr.
No.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
Name of Company
Address of Company
CIN/GLN
Reliance Comtrade
Private Limited
Reliance Corporate IT
Park Limited
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 Ltd
Reliance Global Energy
Services Limited
Reliance Holdings USA,
Inc
Reliance Industrial
Investments and
Holdings Limited
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 – 400 701.
Capitol Services, Inc. 1675 S. State Street,
Suite B, Dover, Delaware -19901
206 East 9th Street, Suite 1300, Austin,
Texas 78701.
206 East 9th Street, Suite 1300, Austin,
Texas 78701.
Delaware International Registry &
Incorporation Service LLC, 301 North
Market Street, Farmers Bank Building,
Wilmington, DE 19801
Raman Rati Apartment,
Near Ashapura Hotel, Saru Section Road,
Jamnagar- 361002
9th Floor, Maker Chambers IV, 222
Nariman Point, Mumbai - 400 021
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 – 400 021
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
Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware-19901
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
*
Representing aggregate % of the shares held by the Company and/or its subsidiaries
U52599MH2006PTC164458
Holding /
Subsidiary
/ Associate
Subsidiary
% of
Shares
held*
100.00
Applicable
section
2(87)(ii)
U74140MH2001PLC131458
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)
U51100GJ2005PTC046538
Subsidiary
100.00
2(87)(ii)
U45201MH1993PLC190935
Subsidiary
100.00
2(87)(ii)
U40108MH2008PLC185326
Subsidiary
100.00
2(87)(ii)
-
-
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
U60300MH1991PLC059678
Subsidiary
100.00
2(87)(ii)
-
Subsidiary
100.00
2(87)(ii)
U24230MH1999PLC121318
Subsidiary
100.00
2(87)(ii)
-
-
-
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
U65910MH1986PLC041081
Subsidiary
100.00
2(87)(ii)
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
255
Holding /
Subsidiary
/ Associate
Subsidiary
% of
Shares
held*
100.00
Applicable
section
2(87)(ii)
-
U52100MH2007PTC174895
Subsidiary
100.00
2(87)(ii)
U74999MH2015PLC265376
Subsidiary
100.00
2(87)(ii)
U51900MH2007PTC175638
Subsidiary
94.40
2(87)(ii)
U72900MH2013PTC239846
Subsidiary
100.00
2(87)(ii)
-
Subsidiary
99.44
2(87)(ii)
U72900MH2007PLC234712
Subsidiary
99.44
2(87)(ii)
-
-
-
Subsidiary
99.44
2(87)(ii)
Subsidiary
99.44
2(87)(ii)
Subsidiary
99.44
2(87)(ii)
U64200MH2013PTC239845
Subsidiary
100.00
2(87)(ii)
U92100MH2013PTC239849
Subsidiary
100.00
2(87)(ii)
U32204MH2013PTC239944
Subsidiary
100.00
2(87)(ii)
U01403MH2007PLC172415
Subsidiary
75.56
2(87)(ii)
U23203MH2000PLC127885
Subsidiary
90.00
2(87)(ii)
Name of Company
Address of Company
CIN/GLN
Sr.
No.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
Reliance Industries
(Middle East) DMCC
Reliance Innovative
Building Solutions
Private Limited
Reliance Jio Asiainfo
Innovation Centre
Limited
Reliance-GrandOptical
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
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
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
Dhobitalao, 5th Floor, Court House,
Lokmanya Tilak Marg, Mumbai - 400002
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai-400021
3010 Gaylord Parkway, Suite 150, Frisco,
Texas 75034
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai-400021
250 North Bridge Road, #16-02A Raffles
City Tower, Singapore 179101
8th Floor, 105 Wigmore Street,
London, United Kingdom, W1U 1Qy
3010 Gaylord Parkway, Suite 150, Frisco,
Texas 75034
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
4th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai – 400002
63.
Reliance LNG Limited
64.
Reliance Marcellus II LLC Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware -19901
65.
Reliance Marcellus LLC Capitol Services, Inc.
-
-
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
66.
67.
68.
Reliance Payment
Solutions Limited
Reliance Petro
Marketing Limited
Reliance
Petroinvestments
Limited
1675 S. State Street, Suite B, Dover,
Delaware -19901
Dhobi Talao , 5th Floor, Court House,
Lokmanya Tilak Marg, Mumbai – 400002
5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai – 400002
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
U65923MH2007PLC173923
Subsidiary
100.00
2(87)(ii)
U74210MH1999PLC120377
Subsidiary
94.40
2(87)(ii)
U72900MH1999PLC121039
Subsidiary
100.00
2(87)(ii)
*
Representing aggregate % of the shares held by the Company and/or its subsidiaries
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
256
Sr.
No.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
Reliance Polyolefins
Limited
Reliance Progressive
Traders Private Limited
Reliance Prolific
Commercial Private
Limited
Reliance Prolific
Traders Private Limited
Reliance Retail
Ventures Limited
Reliance Sibur
Elastomers Private
Limited
Reliance SMSL Limited
(Formerly known as
Strategic Manpower
Solutions Limited)
Reliance Strategic
Investments Limited
Reliance Supply
Solutions Private
Limited (Formerly
known as Office
Depot Reliance Supply
Solutions Private
Limited)
Reliance Textiles
Limited
Reliance Trading
Limited
Reliance Universal
Commercial Limited
Name of Company
Address of Company
CIN/GLN
Reliance Retail Finance
Limited
Reliance Retail
Insurance Broking
Limited
Reliance Retail Limited 3rd Floor, Court House,
U99999MH1992PLC065847
Holding /
Subsidiary
/ Associate
Subsidiary
% of
Shares
held*
100.00
Applicable
section
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)
U74999MH2007PLC167704
Subsidiary
100.00
2(87)(ii)
U65990MH1999PLC120918
Subsidiary
100.00
2(87)(ii)
U36991MH1999PTC119874
Subsidiary
100.00
2(87)(ii)
9th Floor, Maker Chambers IV, 222
Nariman Point,
Mumbai - 400 021
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 – 400 021
3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai-400002
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
3rd Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai – 400002
9th Floor, Maker Chambers IV, 222,
Nariman Point,
Mumbai – 400 021
5th Floor, Court House,
Lokmanya Tilak Marg,
Dhobi Talao, Mumbai- 400002
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
U17291GJ2015PLC082664
Subsidiary
100.00
2(87)(ii)
U51909MH2006PLC166165
Subsidiary
100.00
2(87)(ii)
U15300MH1999PLC123315
Subsidiary
100.00
2(87)(ii)
*
Representing aggregate % of the shares held by the Company and/or its subsidiaries
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
Name of Company
Address of Company
CIN/GLN
257
Holding /
Subsidiary
/ Associate
Subsidiary
% of
Shares
held*
100.00
Applicable
section
2(87)(ii)
U51100MH2005PLC190767
U51100GJ2005PTC046467
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)
-
-
-
-
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
U65990MH1986PTC041221
Subsidiary
100.00
2(87)(ii)
-
Subsidiary
100.00
2(87)(ii)
U99999GJ1992PLC017798
Associate
41.80
2(6)
U74900HR1989GOI030516
Associate
33.33
-
Associate
50.00
2(6)
2(6)
L60300MH1988PLC049019
Associate
45.43
2(6)
Sr.
No.
84.
85.
86.
87.
88.
Reliance Universal
Enterprises Limited
Reliance Universal
Traders Private Limited
Reliance Vantage Retail
Limited
Reliance Ventures
Limited
Reliance World Trade
Private Limited
89.
RIL (Australia) Pty Ltd
90.
91.
92.
RIL Exploration and
Production (Myanmar)
Company Limited
RIL USA, Inc
RP Chemicals
(Malaysia) Sdn Bhd
93.
Surela Investment &
Trading Private Limited
94. Wave Land Developers
Limited
95. Gujarat Chemical Port
Terminal Company
Limited
Indian Vaccines
Corporation Limited
Reliance Europe
Limited
Reliance Industrial
Infrastructure Limited
96.
97.
98.
9th Floor, Maker Chambers IV, 222,
Nariman Point,
Mumbai – 400 021
Raman Rati Apartment,
Near Ashapura Hotel, Saru Section Road,
Jamnagar- 361002
1st Floor, High Street,Shrimali Society,
Near Navrangpura Railway Crossing,
Navrangpura, Ahmedabad , Gujarat –
380009
9th Floor, Maker Chambers IV, 222,
Nariman Point,
Mumbai – 400 021
Avdesh House, 3rd Floor,
Pritam Nagar, 1st Slope,
Ellisbridge, Ahmedabad - 380006
Level 9, 81, Flinders Street, ADELAIDE,
SA, 5000
Level 8, Center Point Towers, No. 65,
Corner of Sule Pagoda Road & Merchant
Street, Kyauktada Township, Yangon.
Corporation Service Company, 2711,
Centerville Road, Suite 400,
Wilmington, Delaware, USA
Level 8, Symphony House,
Pusat Dgangan Dana1, Jalan PJU 1A/46,
47301
Petaling Jaya, Selangor Darul Ehsan,
Malaysia
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
Po Lakhigam, Via Dahej,
Tal. - Vagra,
Dist.- Bharuch-392130
Village Nainwal,
P.O. Manesar, Gurgaon, Haryana
Devonshire House, 60,
Goswell Road,
London, EC1M 7AD
NKM International House,
5th Floor, 178 Backbay Reclamation,
Behind LIC Yogakshema Building,
Babubhai Chinai Road, Mumbai - 400 020
*
Representing aggregate % of the shares held by the Company and/or its subsidiaries
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 258
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 01-04-2016)
No. of Shares held at the end of the year (As on 31-03-2017)
Demat
Physical
Total
% of total
shares
Demat
Physical
Total
% of total
shares
2,11,72,646
0
0
1,32,14,57,425
0
12,04,71,003
1,46,31,01,074
0
0
0
0
0
0
1,46,31,01,074
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,11,72,646
0
0
1,32,14,57,425
0
0.65
0.00
0.00
40.78
0.00
2,11,72,646
0
0
1,32,14,57,425
0
12,04,71,003
3.72
12,04,71,003
1,46,31,01,074
45.15
1,46,31,01,074
0
0
0
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
0
0
0
0
0
0
1,46,31,01,074
45.15
1,46,31,01,074
0
0
0
0
0
0
0
0
0
0
0
0
0
0
% of change
during the
year
0.00
0.00
0.00
-0.14
0.00
-0.01
2,11,72,646
0
0
1,32,14,57,425
0
12,04,71,003
0.65
0.00
0.00
40.64
0.00
3.71
1,46,31,01,074
45.00
-0.15
0
0
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
1,46,31,01,074
45.00
-0.15
9,20,86,152
3,58,143
9,24,44,295
0
26,53,326
25,09,543
92,700
0
0
2,05,733
15,91,409
2,072
0
0
28,59,059
41,00,952
94,772
0
31,61,72,197
40,06,73,227
5,848
31,61,78,045
2,30,547
40,09,03,774
0
0
0
0
0
0
0
23,22,33,755
2.85
0.00
0.09
0.13
0.00
0.00
9.76
12.37
0.00
0.00
7.17
0.01
8,84,59,582
3,58,083
8,88,17,665
6,700
19,84,615
27,60,802
92,872
0
0
2,04,797
14,78,829
2,072
0
6,700
21,89,412
42,39,631
94,944
0
28,27,68,342
7,96,60,602
5,848
28,27,74,190
2,29,507
7,98,90,109
0
0
63,34,83,999
0
0
0
0
0
63,34,83,999
0
3,01,598
3,01,598
2.73
0.00
0.07
0.13
0.00
0.00
8.70
2.46
0.00
0.00
19.48
0.01
-0.12
0.00
-0.02
0.00
0.00
0.00
-1.06
-9.91
0.00
0.00
12.31
0.00
Foreign Portfolio Investors
23,22,33,755
UTI
0
3,01,608
3,01,608
PROMOTERS
Indian
Individual / HUF
Central Govt.
State Govt(s)
Bodies Corporate
Banks / FI
Any other
Petroleum Trust (through
Trustees for sole beneficiary-
Reliance Industrial Investments
and Holdings Limited)
Sub - Total (A) (1)
Foreign
NRIs - Individuals
Other - Individuals
Bodies Corp.
Banks / FI
Any other
Sub - Total (A) (2)
Total Shareholding of Pro-
moter(A) = (A)(1) + (A)(2)
PUBLIC SHAREHOLDING
Institutions
Mutual Funds
Alternate Investment Funds
Banks / FI
Central Govt.
State Govt(s)
Venture Capital Funds
Insurance Companies
FIIs
Foreign Venture Capital Funds
Others
Qualified Foreign Investor
A
1)
a)
b)
c)
d)
e)
f)
f-i)
2)
a)
b)
c)
d)
e)
B
1)
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
(j-i)
(j-ii)
(j-iii)
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
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
2)
a)
i)
ii)
b)
I)
II)
c)
(c-i)
(c-ii)
(c-iii)
(c-iv)
(c-v)
(c-vi)
(c-vii)
Category of Shareholders
No. of Shares held at the beginning of the year (As on 01-04-2016)
No. of Shares held at the end of the year (As on 31-03-2017)
Demat
Physical
Total
1,04,64,20,900
26,95,360
1,04,91,16,260
% of total
shares
32.38
Demat
Physical
Total
1,08,92,17,514
25,80,734
1,09,17,98,248
% of total
shares
33.58
10,35,90,457
13,84,131
10,49,74,588
1,81,778
36,186
2,17,964
3.24
0.01
8,41,00,888
12,87,756
8,53,88,644
1,81,988
36,186
2,18,174
23,17,51,468
5,85,11,113
29,02,62,581
8.96
21,77,37,432
5,62,33,957
27,39,71,389
2,52,74,947
4,77,050
2,57,51,997
0.79
3,05,63,717
3,73,432
3,09,37,149
Qualified Foreign Investor
0
0
0
NRIs
1,44,60,872
44,49,822
1,89,10,694
0
0
0
1,31,97,690
41,39,325
1,73,37,015
0.00
0.58
0.00
0.00
0.08
5.30
421
8,756
52,24,316
17,18,82,820
421
10,886
23,48,913
17,18,83,624
60,47,599
0.19
59,73,988
0
0
0
0
0
421
8,756
52,24,316
17,18,82,820
59,73,988
421
10,886
23,48,913
17,18,83,624
60,47,599
0
0
0
0
0
Foreign Portfolio Investors
Foreign Nationals
Clearing Member
Shares held by Subsidiary
Companies on which no voting
rights are exercisable
Unclaimed Shares Suspense
Account- Regulation 39 of SEBI
(Listing
Obligations and Disclosure
Requirements) Regulations,
2015)1
(c-viii)
Trusts
(c-ix)
HUF
58,91,024
55,61,195
20,950
26,995
59,11,974
55,88,190
0.18
0.17
79,22,180
50,53,226
20,433
27,921
79,42,613
50,81,147
Sub - Total (B) (2)
56,70,03,184
6,49,06,247
63,19,09,431
19.50
54,18,47,422
6,21,19,010
60,39,66,432
Total Public Shareholding (B) =
(B)(1) + (B)(2)
C
SHARES HELD BY CUSTODIAN
FOR GDRS & ADRS
1,61,34,24,084
6,76,01,607
1,68,10,25,691
51.88
1,63,10,64,936
6,46,99,744
1,69,57,64,680
9,62,31,856
17,700
9,62,49,556
2.97
9,23,94,646
17,700
9,24,12,346
Grand Total (A+B+C)2
3,17,27,57,014
6,76,19,307
3,24,03,76,321
100.00
3,18,65,60,656
6,47,17,444
3,25,12,78,100
100.00
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.
259
% of change
during the
year
1.20
-0.61
0.00
-0.53
0.16
0.00
-0.05
0.00
0.00
0.08
-0.01
-0.01
0.06
-0.01
-0.92
0.28
-0.13
0.00
2.63
0.01
8.43
0.95
0.00
0.53
0.00
0.00
0.16
5.29
0.18
0.24
0.16
18.58
52.16
2.84
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
260
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
Devarshi Commercials LLP
Srichakra Commercials LLP
Karuna Commercials LLP
Tattvam Enterprises LLP
Reliance Industries Holding Private Limited
Petroleum Trust (through Trustees for sole
beneficiary-M/s Reliance Industrial Investments
and Holdings Limited.)
K D Ambani
Shreeji Comtrade LLP
Shrikrishna Tradecom LLP
Svar Enterprises LLP
Reliance Welfare Association
Vasuprada Enterprises LLP
Reliance Industrial Infrastructure Limited
Isha M Ambani
7
8
9
10
11 M D Ambani
12 Nita Ambani
13
14 Akash M Ambani
15
16
17
18 Anant M Ambani
19
20
21 Neutron Enterprises Private Limited
Futura Commercials Private Limited
22
Kankhal Trading LLP
23
24
Bhuvanesh Enterprises LLP
25 Ajitesh Enterprises LLP
26
Badri Commercials LLP
27 Abhayaprada Enterprises LLP
Trilokesh Commercials LLP
28
Taran Enterprises LLP
29
30
Pitambar Enterprises LLP
31 Adisesh Enterprises LLP
32
33
34
Rishikesh Enterprises LLP
Pavana Enterprises LLP
Kamalakar Enterprises LLP
Exotic Officeinfra Private Limited
Carat Holdings and Trading Co Private Limited
Shareholding at the beginning
of the year
(As on 01-04-2016)
Shareholding at the end of the year
(As on 31-03-2017)
No. of
Shares
100
100
100
100
25,550
12,04,71,003
73,31,074
66,77,500
66,77,500
100
36,15,846
33,98,146
33,64,390
33,63,190
25,05,468
100
1,72,000
1,00,000
12,688
5,100
861
845
14,34,65,049
13,46,16,811
12,70,41,799
12,70,41,799
12,45,14,168
12,45,13,168
10,63,73,069
10,49,00,070
8,10,99,093
6,04,09,418
3,56,73,400
63,70,016
% of
total
Shares
of the
company
0.00
0.00
0.00
0.00
0.00
3.72
% of Shares
Pledged /
encumbered
to total
shares *
0.00
0.00
0.00
0.00
0.00
0.00
No. of Shares
35,54,00,205
34,44,47,637
25,40,83,498
21,57,15,804
12,87,68,863
12,04,71,003
% of
total
Shares
of the
company
10.93
10.59
7.81
6.63
3.96
3.71
% of Shares
Pledged /
encumbered
to total
shares *
0.00
0.00
0.00
0.00
0.00
0.00
% change
in share
holding
during
the year
10.93
10.59
7.81
6.63
3.96
-0.01
0.23
0.21
0.21
0.00
0.11
0.11
0.10
0.10
0.08
0.00
0.01
0.00
0.00
0.00
0.00
0.00
4.43
4.15
3.92
3.92
3.84
3.84
3.28
3.24
2.50
1.86
1.10
0.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
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
12,688
5,100
861
845
100
100
100
100
100
100
100
100
100
100
100
100
0.23
0.21
0.21
0.20
0.11
0.10
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
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.20
0.00
-0.01
0.00
0.00
0.00
0.02
0.00
0.00
0.00
0.00
0.00
0.00
-4.43
-4.15
-3.92
-3.92
-3.84
-3.84
-3.28
-3.24
-2.50
-1.86
-1.10
-0.20
(*) 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.
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
261
Shareholder’s Name
Sr.
No.
Shareholding at the beginning
of the year
(As on 01-04-2016)
No. of
Shares
% of
total
Shares
of the
company
% of Shares
Pledged /
encumbered
to total
shares *
Shareholding at the end of the year
(As on 31-03-2017)
No. of Shares
% of
total
Shares
of the
company
% of Shares
Pledged /
encumbered
to total
shares *
% change
in share
holding
during
the year
35 Narahari Enterprises LLP
36
37
38
39
Chakradev Enterprises LLP
Chakradhar Commercials LLP
Chakresh Enterprises LLP
Chhatrabhuj Enterprises LLP
40 Harinarayan Enterprises LLP
41
42
43
44
45
Janardan Commercials LLP
Samarjit Enterprises LLP
Shripal Enterprises LLP
Synergy Synthetics Private Limited
Vishatan Enterprises LLP
46 Anuprabha Commercials Private Limited
47
Elakshi Commercials Private Limited
48 Manuvidya Commercials Private Limited
49 Nirahankara Commercials Private Limited
50
51
52
53
54
55
56
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
Farm Enterprises Limited
(Amalgamated with Reliance Industries Holding
Private Limited w.e.f. 15.10.2016)
6,16,840
100
100
100
100
100
100
100
100
100
100
50
50
50
50
50
50
0
0
0
0
11,89,78,113
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3.67
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
57 Nagothane Agrofarms Private Limited
97,65,000
0.30
0.00
(Amalgamated with Reliance Industries Holding
Private Limited w.e.f. 15.10.2016)
58
Reliance Consultancy Services Private Limited
(Amalgamated with Reliance Industries Holding
Private Limited w.e.f. 15.10.2016)
200
0.00
0.00
100
100
100
100
100
100
100
100
100
100
100
50
50
50
50
50
50
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
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-
-
-
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-
-
-
-0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-3.67
-0.30
0.00
Total
1,46,31,01,074
45.15
0.00 1,46,31,01,074
45.00
0.00
-0.15
(*) 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 55 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, 2017.
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
262
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
Shareholding 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 01-04-2016)
Cumulative Shareholding during
the year (01-04-2016 to 31-03-2017)
No. of shares % of total shares of
No. of shares % of total shares of
the company
the company
1,46,31,01,074
45.15
Note-I
1,46,31,01,074
45.00*
Note: There is no change in the total shareholding of the Promoters between 01-04-2016 and 31-03-2017
* The decrease in % of Promoters' shareholding from 45.15% to 45.00% is due to allotment of 1,09,01,779 shares by the Company under Employees' Stock Option Scheme,
during FY 2016-17.
NOTE-I DETAILS OF INCREASE AND DECREASE IN PROMOTERS’ SHARE HOLDING
Name
Sr.
No.
Shareholding
Date
No. of shares at
the beginning
(01-04-16)/end
of the year (31-
03-17)
% of total
shares of the
Company
Reason
Increase/
Decrease
in
shareholding
Cumulative Shareholding
during the year
(From 01-04-16 to 31-03-17)
No. of shares % of total
shares
of the
company
1
2
3
4
Reliance Industries
Holding Private Limited
25,550
0.00
1-Apr-2016
15-Oct-2016
12,87,68,863
3.96
31-Mar-2017
12,87,43,313
Transmission
(Amalgamation)
12,87,68,863
12,87,68,863
Farm Enterprises
Limited
11,89,78,113
3.67
1-Apr-2016
15-Oct-2016
-11,89,78,113*
Transmission
(Amalgamation)
0
0.00
31-Mar-2017
Nagothane Agrofarms
Private Limited
97,65,000
0.30
1-Apr-2016
15-Oct-2016
-97,65,000*
Transmission
(Amalgamation)
Reliance Consultancy
Services Private Limited
0
200
0
0.00
31-Mar-2017
0.00
1-Apr-2016
15-Oct-2016
0.00
31-Mar-2017
-200*
Transmission
(Amalgamation)
0
0
0
0
0
0
3.96
3.96
0.00
0.00
0.00
0.00
0.00
0.00
* Denotes shares transferred to Reliance Industries Holding Private Limited consequent to amalgamation w.e.f. 15-10-2016
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
263
Reason
Increase/
Decrease
in
shareholding
Cumulative Shareholding
during the year
(From 01-04-16 to 31-03-17)
No. of shares % of total
shares
of the
company
Name
Sr.
No.
Shareholding
Date
% of total
shares of the
Company
No. of shares at
the beginning
(01-04-16)/end
of the year (31-
03-17)
12,45,14,168
100
12,45,13,168
5
6
Abhayaprada
Enterprises LLP
Trilokesh Commercials
LLP
3.84
0.00
3.84
1-Apr-2016
9-Mar-2017
31-Mar-2017
1-Apr-2016
9-Mar-2017
-12,45,14,068
Transfer
(Inter se transfer)
-12,45,13,068
Transfer
(Inter se transfer)
100
0.00
31-Mar-2017
7
Taran Enterprises LLP
10,63,73,069
3.28
1-Apr-2016
9-Mar-2017
-10,63,72,969
Transfer
(Inter se transfer)
100
0.00
31-Mar-2017
8
Adisesh Enterprises LLP
8,10,99,093
2.50
1-Apr-2016
9-Mar-2017
-4,06,85,783
20-Mar-2017
-4,04,13,210
Transfer
(Inter se transfer)
Transfer
(Inter se transfer)
100
0.00
31-Mar-2017
9
Bhuvanesh Enterprises
LLP
13,46,16,811
4.15
1-Apr-2016
15-Mar-2017
-13,46,16,711
Transfer
(Inter se transfer)
100
0.00
31-Mar-2017
10
Ajitesh Enterprises LLP
12,70,41,799
3.92
1-Apr-2016
15-Mar-2017
-12,70,41,699
Transfer
(Inter se transfer)
100
0.00
31-Mar-2017
11
Badri Commercials LLP
12,70,41,799
3.92
1-Apr-2016
15-Mar-2017
-12,70,41,699
Transfer
(Inter se transfer)
100
100
100
100
100
100
4,04,13,310
100
100
100
100
100
100
100
100
12
Tattvam Enterprises LLP
100
100
0.00
31-Mar-2017
0.00
1-Apr-2016
9-Mar-2017
4,06,85,783
15-Mar-2017
13,46,16,711
20-Mar-2017
4,04,13,210
21,57,15,804
6.63
31-Mar-2017
Transfer
(Inter se transfer)
Transfer
(Inter se transfer)
Transfer
(Inter se transfer)
4,06,85,883
17,53,02,594
21,57,15,804
21,57,15,804
0.00
0.00
0.00
0.00
0.00
0.00
1.25
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.25
5.40
6.65
6.63
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
264
Name
Sr.
No.
Shareholding
Date
No. of shares at
the beginning
(01-04-16)/end
of the year (31-
03-17)
% of total
shares of the
Company
13
Devarshi Commercials
LLP
100
0.00
1-Apr-2016
9-Mar-2017
35,54,00,205
10.93
31-Mar-2017
14
Kamalakar Enterprises
LLP
63,70,016
0.20
1-Apr-2016
20-Mar-2017
15
Karuna Commercials
LLP
100
100
0.00
31-Mar-2017
0.00
1-Apr-2016
15-Mar-2017
25,40,83,498
7.81
31-Mar-2017
Reason
Increase/
Decrease
in
shareholding
Cumulative Shareholding
during the year
(From 01-04-16 to 31-03-17)
No. of shares % of total
shares
of the
company
35,54,00,105
Transfer
(Inter se transfer)
35,54,00,205
35,54,00,205
10.96
10.93
-63,69,916
Transfer
(Inter se transfer)
100
100
25,40,83,398
Transfer
(Inter se transfer)
25,40,83,498
25,40,83,498
16
Narahari Enterprises
LLP
6,16,840
0.02
1-Apr-2016
20-Mar-2017
100
0.00
31-Mar-2017
-6,16,740
Transfer
(Inter se transfer)
17
Pavana Enterprises LLP
3,56,73,400
1.10
1-Apr-2016
20-Mar-2017
-3,56,73,300
Transfer
(Inter se transfer)
100
0.00
31-Mar-2017
18
Pitambar Enterprises
LLP
10,49,00,070
3.24
1-Apr-2016
20-Mar-2017
-10,48,99,970
Transfer
(Inter se transfer)
100
0.00
31-Mar-2017
19
Rishikesh Enterprises
LLP
6,04,09,418
1.86
1-Apr-2016
20-Mar-2017
-6,04,09,318
Transfer
(Inter se transfer)
100
0.00
31-Mar-2017
20
Kankhal Trading LLP
14,34,65,049
4.43
1-Apr-2016
20-Mar-2017
-14,34,64,949
Transfer
(Inter se transfer)
21
Srichakra Commercials
LLP
100
100
0.00
31-Mar-2017
0.00
1-Apr-2016
20-Mar-2017
34,44,47,637
10.59
31-Mar-2017
34,44,47,537
Transfer
(Inter se transfer)
22
Svar Enterprises LLP
100
0.00
1-Apr-2016
20-Mar-2017
63,69,916
Transfer
(Inter se transfer)
63,70,016
0.20
31-Mar-2017
100
100
100
100
100
100
100
100
100
100
34,44,47,637
34,44,47,637
63,70,016
63,70,016
0.00
0.00
7.83
7.81
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
10.62
10.59
0.20
0.20
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
265
Name
Sr.
No.
Shareholding
Date
No. of shares at
the beginning
(01-04-16)/end
of the year (31-
03-17)
% of total
shares of the
Company
Reason
Increase/
Decrease
in
shareholding
Cumulative Shareholding
during the year
(From 01-04-16 to 31-03-17)
No. of shares % of total
shares
of the
company
23
Vasuprada Enterprises
LLP
100
0.00
1-Apr-2016
20-Mar-2017
6,16,840
0.02
31-Mar-2017
6,16,740
Transfer
(Inter se transfer)
6,16,840
6,16,840
0.02
0.02
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)
Name
Shareholding
Date
Sr.
No.
No. of Shares at
the beginning
(01-04-16) / end
of the year (31-
03-17)
29,26,02,727
% of total
shares
of the
Company
9.03
1
Life Insurance Corporation of India
Increase/
Decrease
in share-
holding
Reason
Cumulative Shareholding
during the year
(01-04-16 to 31-03-17)
No. of
Shares
% of total
shares
of the
Company
1-Apr-2016
-2,07,452
8-Apr-2016
-3,50,000
22-Apr-2016
23,70,000
24-Jun-2016
14,16,757
30-Jun-2016
88,745
1-Jul-2016
2,73,864
8-Jul-2016
4,00,189
15-Jul-2016
16-Sep-2016
-20,818
23-Sep-2016 -60,34,230
30-Sep-2016 -48,81,420
7-Oct-2016 -46,04,264
-9,13,221
-8,48,930
19,55,000
18,17,805
17,59,689
24,658
23-Dec-2016 -11,81,458
-2,25,436
30-Dec-2016
6-Jan-2017 -21,55,432
13-Jan-2017 -19,80,525
-2,25,687
20-Jan-2017
10-Feb-2017
4,95,000
24-Feb-2017 -11,95,500
28-Feb-2017 -24,40,642
3-Mar-2017 -47,73,753
14-Oct-2016
21-Oct-2016
18-Nov-2016
25-Nov-2016
2-Dec-2016
9-Dec-2016
Transfer 29,23,95,275
Transfer 29,20,45,275
Transfer 29,44,15,275
Transfer 29,58,32,032
Transfer 29,59,20,777
Transfer 29,61,94,641
Transfer 29,65,94,830
Transfer 29,65,74,012
Transfer 29,05,39,782
Transfer 28,56,58,362
Transfer 28,10,54,098
Transfer 28,01,40,877
Transfer 27,92,91,947
Transfer 28,12,46,947
Transfer 28,30,64,752
Transfer 28,48,24,441
Transfer 28,48,49,099
Transfer 28,36,67,641
Transfer 28,34,42,205
Transfer 28,12,86,773
Transfer 27,93,06,248
Transfer 27,90,80,561
Transfer 27,95,75,561
Transfer 27,83,80,061
Transfer 27,59,39,419
Transfer 27,11,65,666
9.02
9.01
9.08
9.12
9.13
9.13
9.15
9.14
8.96
8.81
8.67
8.64
8.61
8.67
8.73
8.78
8.78
8.75
8.74
8.67
8.61
8.60
8.62
8.58
8.51
8.36
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
266
Sr.
No.
Name
Shareholding
Date
No. of Shares at
the beginning
(01-04-16) / end
of the year (31-
03-17)
% of total
shares
of the
Company
Increase/
Decrease
in share-
holding
Reason
Cumulative Shareholding
during the year
(01-04-16 to 31-03-17)
No. of
Shares
% of total
shares
of the
Company
2
Europacific Growth Fund
4,84,70,015
26,26,13,009
9,68,39,631
7-Mar-2017 -28,92,835
10-Mar-2017 -29,26,278
-2,97,701
14-Mar-2017
-7,13,822
17-Mar-2017
-2,50,000
21-Mar-2017
-9,72,021
28-Mar-2017
-5,00,000
8.08 31-Mar-2017
Transfer 26,82,72,831
Transfer 26,53,46,553
Transfer 26,50,48,852
Transfer 26,43,35,030
Transfer 26,40,85,030
Transfer 26,31,13,009
Transfer 26,26,13,009
1.50
1-Apr-2016
29-Apr-2016
6-May-2016
16-Dec-2016
23-Dec-2016
30-Dec-2016
28-Feb-2017
3-Mar-2017
7-Mar-2017
10-Mar-2017
14-Mar-2017
17-Mar-2017
21-Mar-2017
2.98 31-Mar-2017
67,56,583
60,82,202
20,49,777
80,74,514
62,75,709
7,68,000
18,30,024
57,59,976
46,58,579
19,63,829
33,19,780
8,30,643
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
5,52,26,598
6,13,08,800
6,33,58,577
7,14,33,091
7,77,08,800
7,84,76,800
8,03,06,824
8,60,66,800
9,07,25,379
9,26,89,208
9,60,08,988
9,68,39,631
9,68,39,631
8.27
8.18
8.17
8.15
8.14
8.09
8.08
1.70
1.89
1.95
2.20
2.40
2.42
2.48
2.65
2.80
2.86
2.96
2.99
2.98
3
Reliance Chemicals Limited
6,22,39,998
1.92
1-Apr-2016
6,22,39,998
1.91 31-Mar-2017
4
Reliance Polyolefins Limited
6,11,94,924
1.89
1-Apr-2016
6,11,94,924
1.88 31-Mar-2017
0
0
Nil
movement
during the
year
Nil
movement
during the
year
6,22,39,998
1.91
6,11,94,924
1.88
5
Government of Singapore
3,50,35,922
1.08
1-Apr-2016
8-Apr-2016
15-Apr-2016
22-Apr-2016
29-Apr-2016
6-May-2016
13-May-2016
20-May-2016
27-May-2016
3-Jun-2016
10-Jun-2016
17-Jun-2016
24-Jun-2016
8-Jul-2016
15-Jul-2016
22-Jul-2016
29-Jul-2016
5-Aug-2016
12-Aug-2016
-2,81,263
1,823
-6,44,034
-3,08,832
-5,46,659
-1,68,844
5,347
15,587
-25,251
5,30,402
3,57,875
81,145
-2,96,420
67,041
-16,185
-2,61,677
-4,19,711
-1,60,660
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
3,47,54,659
3,47,56,482
3,41,12,448
3,38,03,616
3,32,56,957
3,30,88,113
3,30,93,460
3,31,09,047
3,30,83,796
3,36,14,198
3,39,72,073
3,40,53,218
3,37,56,798
3,38,23,839
3,38,07,654
3,35,45,977
3,31,26,266
3,29,65,606
1.07
1.07
1.05
1.04
1.03
1.02
1.02
1.02
1.02
1.04
1.05
1.05
1.04
1.04
1.04
1.03
1.02
1.02
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17 Sr.
No.
Name
Shareholding
Date
No. of Shares at
the beginning
(01-04-16) / end
of the year (31-
03-17)
% of total
shares
of the
Company
19-Aug-2016
2-Sep-2016
9-Sep-2016
16-Sep-2016
7-Oct-2016
14-Oct-2016
4-Nov-2016
11-Nov-2016
25-Nov-2016
2-Dec-2016
9-Dec-2016
16-Dec-2016
23-Dec-2016
30-Dec-2016
6-Jan-2017
13-Jan-2017
20-Jan-2017
24-Jan-2017
27-Jan-2017
31-Jan-2017
3-Feb-2017
7-Feb-2017
10-Feb-2017
14-Feb-2017
28-Feb-2017
3-Mar-2017
7-Mar-2017
10-Mar-2017
21-Mar-2017
24-Mar-2017
28-Mar-2017
0.94 31-Mar-2017
3,05,42,579
267
Reason
Cumulative Shareholding
during the year
(01-04-16 to 31-03-17)
No. of
Shares
% of total
shares
of the
Company
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
3,29,64,225
3,29,19,014
3,30,56,057
3,30,42,950
3,32,02,888
3,31,17,559
3,30,71,720
3,30,27,718
3,30,14,605
3,34,57,538
3,34,57,290
3,34,21,595
3,33,06,948
3,34,46,742
3,35,40,697
3,35,13,780
3,30,92,666
3,30,11,551
3,27,13,441
3,26,57,578
3,18,83,038
3,16,12,740
3,15,25,965
3,14,91,109
3,13,65,081
3,12,62,341
3,13,41,697
3,12,19,698
3,11,92,945
3,10,94,358
3,11,35,794
3,05,42,579
1.02
1.02
1.02
1.02
1.02
1.02
1.02
1.02
1.02
1.03
1.03
1.03
1.03
1.03
1.03
1.03
1.02
1.02
1.01
1.01
0.98
0.97
0.97
0.97
0.97
0.96
0.97
0.96
0.96
0.96
0.96
0.94
Increase/
Decrease
in share-
holding
-1,381
-45,211
1,37,043
-13,107
1,59,938
-85,329
-45,839
-44,002
-13,113
4,42,933
-248
-35,695
-1,14,647
1,39,794
93,955
-26,917
-4,21,114
-81,115
-2,98,110
-55,863
-7,74,540
-2,70,298
-86,775
-34,856
-1,26,028
-1,02,740
79,356
-1,21,999
-26,753
-98,587
41,436
-5,93,215
6
7
Reliance Aromatics and
Petrochemicals Limited
2,98,89,898
0.92
1-Apr-2016
0
2,98,89,898
0.92 31-Mar-2017
Nil
movement
during the
year
2,98,89,898
0.92
HDFC Trustee Company Limited
A/C HDFC Mutual Funds *
1,33,87,754
0.41
1-Apr-2016
8-Apr-2016
15-Apr-2016
22-Apr-2016
29-Apr-2016
6-May-2016
13-May-2016
20-May-2016
27-May-2016
3-Jun-2016
10-Jun-2016
-1,43,552
15,868
-4,165
-62,819
2,49,254
2,725
97,752
1,77,476
-59
-395
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
1,32,44,202
1,32,60,070
1,32,55,905
1,31,93,086
1,34,42,340
1,34,45,065
1,35,42,817
1,37,20,293
1,37,20,234
1,37,19,839
0.41
0.41
0.41
0.41
0.41
0.41
0.42
0.42
0.42
0.42
* Not in the list of top 10 shareholders as on 01-04-2016. The same has been reflected above since the shareholder was one of the top 10 shareholders as on 31-03-2017.
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 268
Sr.
No.
Name
Shareholding
Date
No. of Shares at
the beginning
(01-04-16) / end
of the year (31-
03-17)
% of total
shares
of the
Company
17-Jun-2016
24-Jun-2016
30-Jun-2016
8-Jul-2016
15-Jul-2016
22-Jul-2016
29-Jul-2016
5-Aug-2016
12-Aug-2016
19-Aug-2016
26-Aug-2016
2-Sep-2016
9-Sep-2016
16-Sep-2016
23-Sep-2016
30-Sep-2016
7-Oct-2016
14-Oct-2016
21-Oct-2016
28-Oct-2016
4-Nov-2016
11-Nov-2016
18-Nov-2016
25-Nov-2016
2-Dec-2016
9-Dec-2016
16-Dec-2016
23-Dec-2016
30-Dec-2016
6-Jan-2017
13-Jan-2017
20-Jan-2017
24-Jan-2017
27-Jan-2017
31-Jan-2017
3-Feb-2017
7-Feb-2017
10-Feb-2017
14-Feb-2017
17-Feb-2017
21-Feb-2017
24-Feb-2017
28-Feb-2017
3-Mar-2017
7-Mar-2017
10-Mar-2017
14-Mar-2017
17-Mar-2017
21-Mar-2017
24-Mar-2017
28-Mar-2017
0.78 31-Mar-2017
2,53,00,206
Increase/
Decrease
in share-
holding
169
1,39,530
4,00,942
82
-1,87,196
-9,97,979
1,69,240
1,06,364
-5,73,579
-324
1,47,708
5,885
-12,972
7,398
26,342
63,145
3,11,327
1,20,500
11,34,442
5,05,742
-30,688
-25,140
5,792
10,45,421
9,88,454
1,468
-1,01,147
6,00,823
10,56,963
7,56,913
5,55,224
3,05,869
2,00,320
2,48,668
-2,49,109
-2,14,777
74,654
-1,97,151
75,183
6,54,710
5,00,348
1,00,578
7,37,581
10,70,530
-3,28,317
14,99,715
1,35,562
5,08,344
10,000
9,959
1,31,000
85,851
Reason
Cumulative Shareholding
during the year
(01-04-16 to 31-03-17)
No. of
Shares
% of total
shares
of the
Company
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
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
1,37,20,008
1,38,59,538
1,42,60,480
1,42,60,562
1,40,73,366
1,30,75,387
1,32,44,627
1,33,50,991
1,27,77,412
1,27,77,088
1,29,24,796
1,29,30,681
1,29,17,709
1,29,25,107
1,29,51,449
1,30,14,594
1,33,25,921
1,34,46,421
1,45,80,863
1,50,86,605
1,50,55,917
1,50,30,777
1,50,36,569
1,60,81,990
1,70,70,444
1,70,71,912
1,69,70,765
1,75,71,588
1,86,28,551
1,93,85,464
1,99,40,688
2,02,46,557
2,04,46,877
2,06,95,545
2,04,46,436
2,02,31,659
2,03,06,313
2,01,09,162
2,01,84,345
2,08,39,055
2,13,39,403
2,14,39,981
2,21,77,562
2,32,48,092
2,29,19,775
2,44,19,490
2,45,55,052
2,50,63,396
2,50,73,396
2,50,83,355
2,52,14,355
2,53,00,206
0.42
0.43
0.44
0.44
0.43
0.40
0.41
0.41
0.39
0.39
0.40
0.40
0.40
0.40
0.40
0.40
0.41
0.41
0.45
0.47
0.46
0.46
0.46
0.50
0.53
0.53
0.52
0.54
0.57
0.60
0.61
0.62
0.63
0.64
0.63
0.62
0.63
0.62
0.62
0.64
0.66
0.66
0.68
0.72
0.71
0.75
0.76
0.77
0.77
0.77
0.78
0.78
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17 269
Sr.
No.
Name
Shareholding
Date
No. of Shares at
the beginning
(01-04-16) / end
of the year (31-
03-17)
% of total
shares
of the
Company
2,43,06,993
0.75
1-Apr-2016
8
Vanguard Emerging Markets
Stock Index Fund, A Series of
Vanguard International Equity
Inde X Fund
Increase/
Decrease
in share-
holding
Reason
Cumulative Shareholding
during the year
(01-04-16 to 31-03-17)
No. of
Shares
% of total
shares
of the
Company
8-Apr-2016
22-Apr-2016
29-Apr-2016
6-May-2016
20-May-2016
27-May-2016
3-Jun-2016
10-Jun-2016
17-Jun-2016
24-Jun-2016
22-Jul-2016
29-Jul-2016
5-Aug-2016
12-Aug-2016
19-Aug-2016
2-Sep-2016
9-Sep-2016
23-Sep-2016
7-Oct-2016
14-Oct-2016
21-Oct-2016
28-Oct-2016
11-Nov-2016
25-Nov-2016
2-Dec-2016
6-Jan-2017
13-Jan-2017
20-Jan-2017
31-Jan-2017
3-Feb-2017
17-Feb-2017
24-Mar-2017
0.77 31-Mar-2017
89,656
13,487
-89,593
-1,22,223
-26,434
-1,26,212
-1,70,250
55,180
-1,18,181
-83,470
-50,629
1,68,708
1,34,418
1,41,030
2,00,576
-3,62,065
90,840
-5,80,408
90,176
14,090
2,11,350
52,565
1,83,170
2,22,622
1,26,810
67,632
1,43,718
67,632
1,66,262
36,634
56,360
1,26,810
1,23,992
2,51,61,246
9
Abu Dhabi Investment Authority
3,46,91,237
1.07
1-Apr-2016
22-Apr-2016
1,000
29-Apr-2016 -10,09,183
6-May-2016 -10,20,193
-8,683
13-May-2016
-3,44,860
20-May-2016
-6,66,425
27-May-2016
-4,93,792
3-Jun-2016
10-Jun-2016 -20,87,063
3,34,037
30-Jun-2016
-2,37,047
15-Jul-2016
12-Aug-2016 -12,20,658
5,31,230
19-Aug-2016
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
Transfer
Transfer
Transfer
2,43,96,649
2,44,10,136
2,43,20,543
2,41,98,320
2,41,71,886
2,40,45,674
2,38,75,424
2,39,30,604
2,38,12,423
2,37,28,953
2,36,78,324
2,38,47,032
2,39,81,450
2,41,22,480
2,43,23,056
2,39,60,991
2,40,51,831
2,34,71,423
2,35,61,599
2,35,75,689
2,37,87,039
2,38,39,604
2,40,22,774
2,42,45,396
2,43,72,206
2,44,39,838
2,45,83,556
2,46,51,188
2,48,17,450
2,48,54,084
2,49,10,444
2,50,37,254
2,51,61,246
3,46,92,237
3,36,83,054
3,26,62,861
3,26,54,178
3,23,09,318
3,16,42,893
3,11,49,101
2,90,62,038
2,93,96,075
2,91,59,028
2,79,38,370
2,84,69,600
0.75
0.75
0.75
0.75
0.75
0.74
0.74
0.74
0.73
0.73
0.73
0.74
0.74
0.74
0.75
0.74
0.74
0.72
0.73
0.73
0.73
0.74
0.74
0.75
0.75
0.75
0.76
0.76
0.77
0.77
0.77
0.77
0.77
1.07
1.04
1.01
1.01
1.00
0.98
0.96
0.90
0.91
0.90
0.86
0.88
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 270
Sr.
No.
Name
Shareholding
Date
No. of Shares at
the beginning
(01-04-16) / end
of the year (31-
03-17)
% of total
shares
of the
Company
Increase/
Decrease
in share-
holding
Reason
Cumulative Shareholding
during the year
(01-04-16 to 31-03-17)
No. of
Shares
% of total
shares
of the
Company
-66,000
26-Aug-2016
-8,79,508
2-Sep-2016
5,31,500
16-Sep-2016
4,100
30-Sep-2016
-7,70,000
7-Oct-2016
5,089
14-Oct-2016
-5,09,000
28-Oct-2016
5,41,684
25-Nov-2016
-3,70,557
2-Dec-2016
-15,750
9-Dec-2016
16-Dec-2016
-75,644
23-Dec-2016 -16,10,928
-7,04,706
30-Dec-2016
-17,600
6-Jan-2017
20-Jan-2017 -15,15,000
1,24,302
24-Feb-2017
4,29,795
28-Feb-2017
-31,115
3-Mar-2017
0.72 31-Mar-2017
2,35,40,262
10 Dimensional Emerging Markets
2,04,07,674
0.63
1-Apr-2016
Value Fund
8-Jul-2016
15-Jul-2016
22-Jul-2016
29-Jul-2016
4-Nov-2016
11-Nov-2016
21-Mar-2017
24-Mar-2017
28-Mar-2017
0.59 31-Mar-2017
1,92,12,321
11 ICICI Prudential Life Insurance
1,74,63,227
0.54
1-Apr-2016
Company Limited#
8-Apr-2016
15-Apr-2016
22-Apr-2016
29-Apr-2016
6-May-2016
13-May-2016
20-May-2016
27-May-2016
3-Jun-2016
10-Jun-2016
17-Jun-2016
24-Jun-2016
30-Jun-2016
1-Jul-2016
8-Jul-2016
-1,26,003
-2,46,657
-1,02,243
-62,027
-1,06,015
-1,20,405
-62,885
-1,64,947
-73,129
-1,31,042
12,015
-2,69,009
-5,46,847
-8,828
3,55,949
-86,631
14,336
-1,19,427
93,054
-1,851
-2,45,815
-6,17,544
-6,25,205
-1,29,300
36,064
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
Transfer
2,84,03,600
2,75,24,092
2,80,55,592
2,80,59,692
2,72,89,692
2,72,94,781
2,67,85,781
2,73,27,465
2,69,56,908
2,69,41,158
2,68,65,514
2,52,54,586
2,45,49,880
2,45,32,280
2,30,17,280
2,31,41,582
2,35,71,377
2,35,40,262
2,35,40,262
2,02,81,671
2,00,35,014
1,99,32,771
1,98,70,744
1,97,64,729
1,96,44,324
1,95,81,439
1,94,16,492
1,93,43,363
1,92,12,321
1,74,75,242
1,72,06,233
1,66,59,386
1,66,50,558
1,70,06,507
1,69,19,876
1,69,34,212
1,68,14,785
1,69,07,839
1,69,05,988
1,66,60,173
1,60,42,629
1,54,17,424
1,52,88,124
1,53,24,188
0.88
0.85
0.87
0.87
0.84
0.84
0.83
0.84
0.83
0.83
0.83
0.78
0.76
0.76
0.71
0.71
0.73
0.73
0.72
0.63
0.62
0.61
0.61
0.61
0.61
0.60
0.60
0.59
0.59
0.54
0.53
0.51
0.51
0.52
0.52
0.52
0.52
0.52
0.52
0.51
0.49
0.48
0.47
0.47
# Ceased to be in the list of top 10 shareholders as on 31-03-2017. The same is reflected above since the shareholder was one of the top 10 shareholders as on 01-04-2016.
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17 Sr.
No.
Name
Shareholding
Date
No. of Shares at
the beginning
(01-04-16) / end
of the year (31-
03-17)
% of total
shares
of the
Company
15-Jul-2016
22-Jul-2016
29-Jul-2016
5-Aug-2016
12-Aug-2016
19-Aug-2016
26-Aug-2016
2-Sep-2016
9-Sep-2016
16-Sep-2016
23-Sep-2016
30-Sep-2016
7-Oct-2016
14-Oct-2016
21-Oct-2016
28-Oct-2016
4-Nov-2016
11-Nov-2016
18-Nov-2016
25-Nov-2016
2-Dec-2016
9-Dec-2016
16-Dec-2016
23-Dec-2016
30-Dec-2016
6-Jan-2017
13-Jan-2017
20-Jan-2017
24-Jan-2017
27-Jan-2017
31-Jan-2017
3-Feb-2017
7-Feb-2017
10-Feb-2017
14-Feb-2017
17-Feb-2017
21-Feb-2017
24-Feb-2017
28-Feb-2017
3-Mar-2017
7-Mar-2017
10-Mar-2017
14-Mar-2017
17-Mar-2017
21-Mar-2017
24-Mar-2017
28-Mar-2017
0.45 31-Mar-2017
1,47,07,941
271
Reason
Cumulative Shareholding
during the year
(01-04-16 to 31-03-17)
No. of
Shares
% of total
shares
of the
Company
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
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
1,46,83,483
1,43,44,717
1,44,01,743
1,43,35,423
1,34,36,031
1,28,18,799
1,20,26,672
1,14,95,668
1,20,14,249
1,15,72,321
1,12,00,875
1,12,41,372
1,12,09,506
1,13,46,550
1,13,63,392
1,12,32,386
1,11,94,645
1,05,41,699
1,05,76,452
1,05,92,594
1,04,82,349
1,04,49,753
1,04,18,775
1,03,04,134
1,03,11,598
1,03,59,586
1,07,28,036
1,03,48,353
1,01,86,716
1,02,07,598
1,03,60,917
1,03,64,234
1,03,66,253
1,03,77,650
1,03,78,363
1,03,87,032
1,04,00,298
1,04,24,807
1,28,53,602
1,28,71,149
1,29,00,039
1,28,99,010
1,28,96,396
1,28,85,768
1,29,31,114
1,32,78,508
1,33,96,485
1,47,07,941
0.45
0.44
0.44
0.44
0.41
0.40
0.37
0.35
0.37
0.36
0.35
0.35
0.35
0.35
0.35
0.35
0.35
0.33
0.33
0.33
0.32
0.32
0.32
0.32
0.32
0.32
0.33
0.32
0.31
0.31
0.32
0.32
0.32
0.32
0.32
0.32
0.32
0.32
0.40
0.40
0.40
0.40
0.40
0.40
0.40
0.41
0.41
0.45
Increase/
Decrease
in share-
holding
-6,40,705
-3,38,766
57,026
-66,320
-8,99,392
-6,17,232
-7,92,127
-5,31,004
5,18,581
-4,41,928
-3,71,446
40,497
-31,866
1,37,044
16,842
-1,31,006
-37,741
-6,52,946
34,753
16,142
-1,10,245
-32,596
-30,978
-1,14,641
7,464
47,988
3,68,450
-3,79,683
-1,61,637
20,882
1,53,319
3,317
2,019
11,397
713
8,669
13,266
24,509
24,28,795
17,547
28,890
-1,029
-2,614
-10,628
45,346
3,47,394
1,17,977
13,11,456
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 272
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
No. of Shares at
the beginning
(01-04-16)/end
of the year
(31-03-17)
% of total
shares
of the
Company
Increase/
Decrease
in share-
holding
Reason Cumulative Shareholding
during the year
(01-04-16 to 31-03-17)
No. of
Shares
% of total
shares of the
Company
A
1
DIRECTORS
Mukesh D. Ambani
Chairman and Managing Director
2
3
4
5
6
Nikhil R. Meswani
Executive Director
Hital R. Meswani
Executive Director
Nita M. Ambani
Non-Executive Director
P. M. S. Prasad
Executive Director
Pawan Kumar Kapil
Executive Director
36,15,846
0.11
1-Apr-2016
36,15,846
0.11
31-Mar-2017
0
Nil movement
during the year
36,15,846
0.11
4,18,374
16,78,374
3,51,886
16,11,886
0.01
0.05
0.01
0.05
1-Apr-2016
27-Mar-2017
31-Mar-2017
1-Apr-2016
27-Mar-2017
31-Mar-2017
12,60,000 ESOS Allotment
12,60,000 ESOS Allotment
16,78,374
16,78,374
16,11,886
16,11,886
0.05
0.05
0.05
0.05
33,98,146
0.10
1-Apr-2016
33,98,146
0.10
31-Mar-2017
0
Nil movement
during the year
33,98,146
0.10
1,36,666
10,36,666
25,000
0.00
0.03
0.00
1-Apr-2016
27-Mar-2017
31-Mar-2017
01-Apr-2016
13-Apr-2016
12-Jul-2016
19-Jul-2016
25-Jul-2016
26-Jul-2016
25-Aug-2016
30-Aug-2016
12-Sep-2016
14-Sep-2016
15-Sep-2016
16-Sep-2016
19-Sep-2016
20-Sep-2016
22-Sep-2016
9,00,000 ESOS Allotment
10,36,666
10,36,666
Transfer
-1,500
-2,000
Transfer
4,000 ESOS Allotment
Transfer
-2,000
Transfer
-1,500
Transfer
-1,000
-1,000
Transfer
5,000 ESOS Allotment
Transfer
-500
Transfer
-1,000
Transfer
-1,000
Transfer
-1,500
Transfer
-500
Transfer
-500
Transfer
-500
23,500
21,500
25,500
23,500
22,000
21,000
20,000
25,000
24,500
23,500
22,500
21,000
20,500
20,000
19,500
0.03
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17
273
Name
Sr.
No.
Shareholding
Date
No. of Shares at
the beginning
(01-04-16)/end
of the year
(31-03-17)
% of total
shares
of the
Company
Increase/
Decrease
in share-
holding
Reason Cumulative Shareholding
during the year
(01-04-16 to 31-03-17)
No. of
Shares
% of total
shares of the
Company
23-Sep-2016
26-Sep-2016
04-Oct-2016
05-Jan-2017
12-Jan-2017
17-Feb-2017
22-Feb-2017
27-Mar-2017
31-Mar-2017
1-Apr-2016
29-Apr-2016
5-May-2016
31-Mar-2017
Transfer
-1,000
Transfer
-1,000
Transfer
-1,000
-1,000
Transfer
13,000 ESOS Allotment
Transfer
-500
Transfer
-2,500
7,999 ESOS Allotment
3,000
3,000
Transfer
Transfer
18,500
17,500
16,500
15,500
28,500
28,000
25,500
33,499
33,499
3,33,000
3,36,000
3,36,000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.01
0.01
33,499
3,30,000
0.00
0.01
3,36,000
0.01
27,984
0.00
1-Apr-2016
27,984
0.00
31-Mar-2017
13,544
0.00
1-Apr-2016
13,544
0.00
31-Mar-2017
2,300
0.00
1-Apr-2016
2,300
0.00
31-Mar-2017
0
0
0
0
0
0
0.00
1-Apr-2016
0.00
31-Mar-2017
0.00
1-Apr-2016
0.00
31-Mar-2017
0.00
1-Apr-2016
0.00
31-Mar-2017
0
Nil movement
during the year
0
Nil movement
during the year
0
Nil movement
during the year
0
0
0
Nil Holding/
movement
during the year
Nil Holding/
movement
during the year
Nil Holding/
movement
during the year
27,984
0.00
13,544
0.00
2,300
0.00
0
0
0
0.00
0.00
0.00
7
8
9
Mansingh L. Bhakta
Independent Director
Yogendra P. Trivedi
Independent Director
Dr. Dharam Vir Kapur
Independent Director
10
Prof. Ashok Misra
Independent Director
11
Prof. Dipak C. Jain
Independent Director
12 Dr. Raghunath A. Mashelkar
Independent Director
13
Adil Zainulbhai
Independent Director
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 274
Name
Sr.
No.
14
Raminder Singh Gujral
Independent Director
B
1
KEY MANAGERIAL
PERSONNEL
K Sethuraman
Group Company Secretary and
Chief Compliance Officer
2
Alok Agarwal
Chief Financial Officer
Shareholding
Date
No. of Shares at
the beginning
(01-04-16)/end
of the year
(31-03-17)
% of total
shares
of the
Company
Increase/
Decrease
in share-
holding
Reason Cumulative Shareholding
during the year
(01-04-16 to 31-03-17)
No. of
Shares
% of total
shares of the
Company
0
0
0.00
1-Apr-2016
0.00
31-Mar-2017
0
Nil Holding/
movement
during the year
0
0.00
54,500
0.00
1-Apr-2016
31-May-2016
10,500 ESOS Allotment
2-Aug-2016
30-Nov-2016
12-Jan-2017
9-Mar-2017
10-Mar-2017
14-Mar-2017
15-Mar-2017
16-Mar-2017
20-Mar-2017
23-Mar-2017
24-Mar-2017
27-Mar-2017
31-Mar-2017
1-Apr-2016
31-May-2016
30-Aug-2016
12-Oct-2016
30-Nov-2016
1-Mar-2017
27-Mar-2017
31-Mar-2017
26,278
2,17,126
0.00
0.01
10,00,126
0.03
10,000 ESOS Allotment
4,000 ESOS Allotment
1,000 ESOS Allotment
Transfer
-4,953
Transfer
-10,092
Transfer
-3,797
Transfer
-6,537
Transfer
-4,621
Transfer
-3,222
Transfer
-10,500
Transfer
-8,500
Transfer
-1,500
65,000
75,000
79,000
80,000
75,047
64,955
61,158
54,621
50,000
46,778
36,278
27,778
26,278
26,278
9,000 ESOS Allotment
15,000 ESOS Allotment
12,000 ESOS Allotment
18,000 ESOS Allotment
9,000 ESOS Allotment
7,20,000 ESOS Allotment
2,26,126
2,41,126
2,53,126
2,71,126
2,80,126
10,00,126
10,00,126
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.01
0.01
0.01
0.01
0.03
0.03
3
Srikanth Venkatachari
Joint Chief Financial Officer
99,180
0.00
1-Apr-2016
99,180
0.00
31-Mar-2017
0 Nil movement
during the year
99,180
0.00
Reliance Industries Limited Life is Beautiful. Life is Digital.BOARD'S REPORTIntegrated Annual Report 2016-17 275
ATTACHMENT H
V. INDEBTEDNESS
INDEBTEDNESS OF THE COMPANY INCLUDING INTEREST OUTSTANDING/ACCRUED BUT NOT
DUE FOR PAYMENT
Secured
Loans excluding
deposits
Unsecured
Loans
Deposits
Total
Indebtedness
₹ in crore
4,591
--
66
4,657
4,79,052
4,72,937
112
6,003
10,594
--
59
10,653
1,02,419
--
233
1,02,652
95,743
98,972
2,338
(5,567)
96,852
--
270
97,122
--
--
--
--
--
--
--
--
--
--
--
––
1,07,010
--
299
1,07,309
5,74,795
5,71,909
2,450
436
1,07,446
--
329
1,07,775
Indebtedness at the beginning of the financial year
i) Principal Amount
ii)
Interest due but not paid
iii) Interest accrued but not due
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
i) Principal Amount
ii)
Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii)
ATTACHMENT I
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. REMUNERATION TO MANAGING DIRECTOR, WHOLE-TIME DIRECTORS AND/OR MANAGER
Particulars of Remuneration
Sr.
No.
1
Gross salary
Mukesh D.
Ambani
Name of MD/WTD/Manager
P.M.S.
Prasad
Hital R.
Meswani
Nikhil R
Meswani
(a) Salary as per provisions contained in section 17(1)
of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of the Income-tax
Act, 1961
(c) Profits in lieu of salary under section 17(3) of the
4.17
0.59
-
3.44
0.89
-
3.03
1.30
-
₹ in crore
Total
Amount
Pawan
Kumar Kapil
2.26
20.43
0.17
3.04
-
7.53
0.09
-
45.85
-
-
9.53
0.71
15.00
64.18
-
12.00
0.25
80.76*
64.18
-
12.00
0.25
80.76*
33.53
1.57
233.78
₹ 4,034 crore (being 10% of the net profits of the Company calculated as per
Section 198 of the Companies Act, 2013)
-
0.25
53.72*
1.00
-
-
0.11
3.54*
175.21
2
3
4
5
Income-tax Act, 1961
Stock Options
Sweat Equity
Commission (as % of profit)
Others(Retiral Benefits)
Total (A)
Ceiling as per the Act
Note: The Managing Director and Whole-time Directors are also entitled to medical reimbursement as per the policy of the Company for
the senior managerial executives.
* The remuneration includes value of stock options exercised during the year as per income tax rules. Whereas as per accounting
rules, the charge on account of stock options is recognised over vesting period.
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
276
l
a
t
o
T
t
n
u
o
m
A
e
r
o
r
c
n
i
₹
2
5
1
.
7
1
0
.
-
0
8
0
1
.
2
3
2
1
.
-
5
3
1
.
2
5
1
.
4
0
0
.
-
5
3
1
.
9
3
1
.
-
-
-
-
-
-
-
-
4
0
0
.
-
5
3
1
.
9
3
1
.
6
2
0
.
-
5
3
1
.
1
6
1
.
-
-
-
-
2
2
0
.
-
5
3
1
.
7
5
1
.
-
-
-
-
9
0
0
.
-
5
3
1
.
4
4
1
.
-
-
-
-
4
1
0
.
-
5
3
1
.
9
4
1
.
-
-
-
-
4
2
0
.
-
5
3
1
.
9
5
1
.
-
-
-
-
1
3
0
.
-
5
3
1
.
6
6
1
.
-
-
-
-
9
0
0
.
-
5
3
1
.
4
4
1
.
-
-
-
-
1
7
3
1
.
2
5
1
.
9
3
1
.
1
6
1
.
7
5
1
.
4
4
1
.
9
4
1
.
9
5
1
.
6
6
1
.
4
4
1
.
.
9
4
7
4
2
)
3
1
0
2
i
,
t
c
A
s
e
n
a
p
m
o
C
e
h
t
f
o
8
9
1
n
o
i
t
c
e
S
r
e
p
s
a
d
e
t
a
u
c
l
a
c
y
n
a
p
m
o
C
e
h
t
l
f
o
s
t
fi
o
r
p
t
e
n
e
h
t
f
o
%
1
g
n
e
b
i
(
e
r
o
r
c
3
0
4
₹
s
r
o
t
c
e
r
i
D
f
o
e
m
a
N
l
a
r
j
u
G
h
g
n
S
i
i
n
a
b
m
A
l
i
a
h
b
u
n
i
a
Z
h
t
a
n
u
h
g
a
R
C
k
a
p
D
i
r
e
d
n
m
a
R
i
.
M
a
t
i
N
l
i
d
A
.
r
D
.
f
o
r
P
r
a
k
l
e
h
s
a
M
A
.
n
i
a
J
k
o
h
s
A
a
r
s
i
M
.
f
o
r
P
r
u
p
a
K
r
i
V
m
a
r
a
h
D
i
d
e
v
i
r
T
P.
a
t
k
a
h
B
.
L
.
r
D
a
r
d
n
e
g
o
Y
h
g
n
i
s
n
a
M
i
/
d
r
a
o
b
g
n
d
n
e
t
t
a
r
o
f
e
e
f
g
n
i
t
t
i
S
s
g
n
i
t
e
e
m
e
e
t
t
i
m
m
o
c
s
r
o
t
c
e
r
i
D
t
n
e
d
n
e
p
e
d
n
I
1
n
o
i
s
s
i
m
m
o
C
s
r
e
h
t
O
·
·
)
1
(
L
A
T
O
T
i
/
d
r
a
o
b
g
n
d
n
e
t
t
a
r
o
f
e
e
f
g
n
i
t
t
i
S
s
r
o
t
c
e
r
i
D
e
v
i
t
u
c
e
x
E
-
n
o
N
r
e
h
t
O
2
n
o
i
t
a
r
e
n
u
m
e
R
f
o
s
r
a
l
u
c
i
t
r
a
P
.
r
S
.
o
N
s
g
n
i
t
e
e
m
e
e
t
t
i
m
m
o
c
n
o
i
s
s
i
m
m
o
C
s
r
e
h
t
O
·
·
)
2
(
L
A
T
O
T
t
c
A
e
h
t
r
e
p
s
a
g
n
i
l
i
e
C
I
L
A
R
E
G
A
N
A
M
L
A
T
O
T
*
N
O
I
T
A
R
E
N
U
M
E
R
)
2
+
1
(
=
)
B
(
L
A
T
O
T
)
3
1
0
2
i
,
t
c
A
s
e
n
a
p
m
o
C
e
h
t
f
o
8
9
1
n
o
i
t
c
e
S
r
e
p
s
a
d
e
t
a
u
c
l
a
c
y
n
a
p
m
o
C
e
h
t
l
f
o
s
t
fi
o
r
p
t
e
n
e
h
t
f
o
%
1
1
g
n
e
b
i
(
e
r
o
r
c
7
3
4
4
₹
,
t
c
A
e
h
t
r
e
p
s
a
g
n
i
l
i
e
C
l
l
a
r
e
v
O
)
B
d
n
a
A
f
o
l
a
t
o
t
e
h
t
g
n
e
b
i
(
s
r
o
t
c
e
r
i
D
r
e
h
t
o
d
n
a
s
r
o
t
c
e
r
i
i
D
e
m
T
-
e
o
h
W
l
,
r
o
t
c
e
r
i
i
D
g
n
g
a
n
a
M
o
t
n
o
i
t
a
r
e
n
u
m
e
r
l
a
t
o
T
*
I
L
E
N
N
O
S
R
E
P
L
A
R
E
G
A
N
A
M
Y
E
K
D
N
A
S
R
O
T
C
E
R
D
F
O
N
O
I
T
A
R
E
N
U
M
E
R
I
.
I
V
I
S
R
O
T
C
E
R
D
R
E
H
T
O
O
T
N
O
I
T
A
R
E
N
U
M
E
R
.
B
J
T
N
E
M
H
C
A
T
T
A
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
ATTACHMENT K
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
Particulars of Remuneration
Sr.
No.
Key Managerial Personnel
CEO
Company
Secretary
(K. Sethuraman)
CFO
(Alok
Agarwal)
Joint CFO
(Srikanth
Venkatachari)
277
₹ in crore
Total
Amount
1
Gross salary
(a) Salary as per provisions contained in section 17(1)
of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of the Income-tax
Act, 1961
(c) Profits in lieu of salary under section 17(3) of the
2
3
4
5
Income-tax Act, 1961
Stock Option
Sweat Equity
Commission (as % of profit)
Others - Retiral Benefits
TOTAL
Not
Applicable
2.07
0.03
-
0.84
-
-
0.09
3.03*
11.55
0.10
-
38.91
-
-
0.15
50.71*
10.83
24.45
0.01
0.14
-
-
-
-
-
0.24
11.08
39.75
-
-
0.48
64.82
*
The remuneration includes value of stock options exercised during the year as per income tax rules. Whereas as per accounting rules,
the charge on account of stock option is recognised over vesting period.
ATTACHMENT L
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES
Type
Section of the
Companies Act
Brief
Description
Details of Penalty /
punishment / compounding
fees imposed
Authority (RD/
NCLT/ COURT)
Appeal made,
if any (give
details)
A. COMPANY
Penalty
Punishment
Compounding
B. DIRECTOR
Penalty
Punishment
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding
N I L
For and on behalf of Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 24, 2017
Board's Report02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
278
STANDALONE
FINANCIAL STATEMENTS
Independent Auditors’ Report on Financial Statements
279 /
284 / Balance Sheet
285 / Statement of Profit and Loss
286 /
288 / Cash Flow Statement
290 / Notes to the Financial Statements
Statement of Changes in Equity
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 279
INDEPENDENT AUDITORS’ REPORT
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, 2017, and the
Statement of Profit and Loss (including Other Comprehensive
Income), the Cash Flow Statement and the Statement of Changes
in Equity for the year then ended, and a summary of the significant
accounting policies and other explanatory information (hereinafter
referred to as “standalone Ind AS financial statements”)
MANAGEMENT’S RESPONSIBILITY FOR THE STANDALONE
IND AS 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 Ind AS financial
statements that give a true and fair view of the financial position,
financial performance including other comprehensive income, cash
flows and changes in equity of the Company in accordance with
the accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) prescribed under section 133
of the Act read with relevant rules issued thereunder.
This responsibility also includes 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 frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and 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 standalone Ind AS 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 Ind
AS 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.
We conducted our audit of the standalone Ind AS 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 Ind
AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the standalone Ind
AS financial statements. The procedures selected depend on
the auditor’s judgment, including the assessment of the risks
of material misstatement of the standalone Ind AS 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 Ind
AS 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 Ind AS
financial statements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone Ind AS financial statements.
OPINION
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone Ind AS
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, 2017, and its profit, total
comprehensive income, its cash flows and the changes in equity for
the year ended on that date.
OTHER MATTERS
The standalone Ind AS financial statements and other financial
information include the Company’s proportionate share in jointly
controlled operations in respect of assets of Rs. 767 crore, liabilities
of Rs.73 crore, expenditure of Rs. 591 crore and the elements
making up the Cash Flow Statement and related disclosures in
respect of an unincorporated joint ventures which is based on
statements from the operator and certified by the management.
Our opinion is not modified in respect of above said matters.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1.
As required by Section 143(3) of the Act, we report, that:
a)
b)
c)
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 Statement of Profit and Loss
including Other Comprehensive Income, the Cash
Flow Statement and Statement of Changes in Equity
dealt with by this Report are in agreement with the
relevant books of account.
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONStandalone Financial Statements
280
INDEPENDENT AUDITORS’ REPORT
d)
e)
f )
g)
In our opinion, the aforesaid standalone Ind AS
financial statements comply with the Indian
Accounting Standards prescribed under section 133 of
the Act read with relevant rules issued thereunder.
On the basis of the written representations received
from the directors as on March 31, 2017 taken on
record by the Board of Directors, none of the directors
is disqualified as on March 31, 2017 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 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,
as amended, in our opinion and to the best of our
information and according to the explanations given
to us:
i.
ii.
The Company has disclosed the impact of
pending litigations on its financial position
in its standalone Ind AS financial statements.
Refer note 32 to the standalone Ind AS financial
statements.
The Company has made provision, as required
under the applicable law or accounting
standards, for material foreseeable losses, if any,
on long-term contracts including derivative
contracts;
iii.
iv.
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 Rs.19.85 crore,
which are held in abeyance due to pending
legal cases; and
The Company has provided requisite disclosures
in the standalone Ind AS financial statements
as regards its holding and dealings in Specified
Bank Notes as defined in the Notification S.O.
3407(E) dated the November 8, 2016 of the
Ministry of Finance, during the period from
November 8, 2016 to December 30, 2016.
Based on audit procedures performed and
the representations provided to us by the
management, we report that the disclosures
are in accordance with the books of account
maintained by the Company and as produced to
us by the Management.
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.
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 24, 2017
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
281
ANNEXURE “A”
TO THE INDEPENDENT AUDITORS’ REPORT ON THE STANDALONE IND AS 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)
the Company’s internal financial controls system over financial
reporting.
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
31st March, 2017 in conjunction with our audit of the standalone
Ind AS financial statements of the Company for the year ended on
that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL
FINANCIAL CONTROLS
The Company’s management is responsible for establishing and
maintaining internal financial controls 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 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 standalone Ind AS 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
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 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, 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 31st March, 2017, 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 24, 2017
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONStandalone Financial Statements 282
ANNEXURE “B”
TO THE INDEPENDENT AUDITORS’ REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF
RELIANCE INDUSTRIES LIMITED
v.
vi.
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) (d) 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,
2017 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, 2017 on
account of disputes are given below:
Income Tax
Act,1961
Income
Tax
2,257 2011-12 and
2012-13
Central
Excise Act,
1944
Excise
Duty
and
Service
Tax
0 # Various Years from
1990-91 to 2006-07
136 Various Years from
1991-92 to 2012-13
4 Various Years from
2006-07 to 2009-10
Commissioner
of Income-Tax
(Appeals)
Commissioner
of Central Excise
(Appeals)
Central Excise
and Service
Tax Appellate
Tribunal
High Court
(Referred to in paragraph 2, under ‘Report on Other Legal and
Regulatory Requirements’ section of our Report of even date)
i.
In respect of its fixed assets:
a)
b)
c)
The Company has maintained proper records showing
full particulars including quantitative details and
situation of fixed assets on the basis of available
information.
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 cases
of leasehold land, aggregating Rs. 778 crore (refer note
1.1 to the standalone Ind AS financial statements) in
respect of which lease deeds are pending execution.
We verified the title deeds for immovable properties
acquired from April 1, 2015 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:
1
2
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.
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
ANNEXURE “B”
TO THE INDEPENDENT AUDITORS’ REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF
RELIANCE INDUSTRIES LIMITED
283
Sr.
No
Name of the
Statute
Nature of
Dues
Sales
Tax/
VAT and
Entry
Tax
3
Central
Sales Tax
Act, 1956
and Sales
Tax Act of
various
States
4
Customs
Act, 1962
Customs
Duty
Period to which the
amount relates
Amount
(` in
crore)
1,337 Various Years from
1999-00 to 2009-10
366 Various Years from
1983-88 to 2012-13
238 Various Years from
2000-01 to 2007-08
0@ 2004-05 and
2011-12
20 2007-08
Forum where
dispute is pending
Joint/ Deputy
Commissioner/
Commissioner
(Appeals)
Sales Tax
Apellate
Tribunal
High Court
Supreme Court
Central Excise
and Service
Tax Appellate
Tribunal
Total
# Rs.35 lakh.
@ Rs.39 lakh.
4,359
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.
In our opinion and according to the information and
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.
In our opinion and according to the information and
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.
xiii.
xiv.
xv.
The Company is not a Nidhi Company and hence reporting
under clause (xii) of Paragraph 3 of the Order is not
applicable.
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
standalone Ind AS financial statements etc. as required by the
applicable accounting standards.
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.
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 24, 2017
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONStandalone Financial Statements 284
BALANCE SHEET
AS AT 31ST MARCH, 2017
ASSETS
Non-current assets
Property, plant and equipment
Capital Work-in-Progress
Intangible assets
Intangible assets under development
Financial Assets
Investments
Loans
Other Non-current assets
Total Non-Current assets
Current assets
Inventories
Financial Assets
Investments
Trade receivables
Cash and cash equivalents
Loans
Other Financial Assets
Other Current Assets
Total Current assets
Total Assets
EQUITY AND LIABILITIES
Equity
Equity Share capital
Other Equity
Total Equity
Liabilities
Non-current liabilities
Financial Liabilities
Borrowings
Provisions
Deferred tax liabilities (Net)
Total non-current liabilities
Current liabilities
Financial Liabilities
Borrowings
Trade payables
Other Financial Liabilities
Other Current liabilities
Provisions
Total current liabilities
Total Liabilities
Total Equity and Liabilities
Significant Accounting Policies
See accompanying Notes to the Financial Statements
Notes
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
1
1
1
1
2
3
4
5
6
7
8
9
10
12
13
14
15
16
17
18
19
20
21
22
1 to 41
1,36,882
1,28,283
16,248
5,906
1,40,544
10,418
2,184
4,40,465
34,018
51,906
5,472
1,754
4,900
3,372
4,859
1,06,281
5,46,746
3,251
2,85,062
2,88,313
78,723
2,118
24,766
1,05,607
22,580
68,161
43,920
16,897
1,268
1,52,826
2,58,433
5,46,746
1,32,662
96,994
14,881
13,911
1,15,134
11,812
3,742
3,89,136
28,034
42,116
3,495
6,892
4,973
2,723
4,305
92,538
4,81,674
3,240
2,50,758
2,53,998
77,830
1,066
23,747
1,02,643
14,490
54,521
46,504
8,348
1,170
1,25,033
2,27,676
4,81,674
1,21,084
65,178
13,924
10,419
63,405
21,655
7,179
3,02,844
36,551
52,044
4,661
11,571
6,763
2,539
3,555
1,17,684
4,20,528
3,236
2,29,508
2,32,744
76,049
898
22,916
99,863
12,916
54,469
16,990
2,251
1,295
87,921
1,87,784
4,20,528
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
Mumbai
Date : April 24, 2017
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
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
Nita M. Ambani
Raminder Singh Gujral
- Chairman & Managing Director
Executive Directors
Directors
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31ST MARCH, 2017
INCOME
Revenue from operations
Sale of Products
Income from Services
Other Income
Total Income
EXPENSES
Cost of Material Consumed
Purchase of Stock-in-Trade
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade
Excise duty and service tax
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
Other comprehensive income:
i.
ii.
Items that will not be reclassified to Statement of Profit and Loss
Income tax relating to items that will not be reclassified to Statement of
Profit and Loss (Previous Year ` 23,63,459)
Items that will be reclassified to Statement of Profit and Loss
Income tax relating to items that will be reclassified to Statement of Profit
and Loss
iii.
iv.
Total comprehensive income for the year
Earnings per equity share of face value of ` 10 each
Basic (in `)
Diluted (in `)
Significant Accounting Policies
See accompanying Notes to the Financial Statements
285
Notes
2016-17
(` in crore)
2015-16
23
24
25
26
27
28
11
17
26.1(iv)
24.1
29
29
1 to 41
2,64,909
132
2,65,041
8,709
2,73,750
1,64,250
5,161
(4,839)
23,016
4,434
2,723
8,465
29,763
2,32,973
40,777
8,333
1,019
31,425
35
(7)
2,752
(588)
2,51,100
141
2,51,241
7,821
2,59,062
1,52,769
4,241
4,171
18,083
4,262
2,562
8,590
28,368
2,23,046
36,016
7,801
831
27,384
(1)
-
1,067
(228)
33,617
28,222
96.90
96.73
84.56
84.39
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
Mumbai
Date : April 24, 2017
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
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
Nita M. Ambani
Raminder Singh Gujral
- Chairman & Managing Director
Executive Directors
Directors
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONStandalone Financial Statements 286
I
I
Y
T
U
Q
E
N
S
E
G
N
A
H
C
F
O
T
N
E
M
E
T
A
T
S
,
7
1
0
2
H
C
R
A
M
T
S
1
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
C
N
A
N
I
F
I
)
e
r
o
r
c
n
i
`
(
d
n
e
e
h
t
t
a
e
c
n
a
l
a
B
y
t
i
u
q
e
n
i
s
e
g
n
a
h
C
1
5
2
3
,
7
1
0
2
,
h
c
r
a
M
t
s
1
3
1
1
7
1
-
6
1
0
2
r
a
e
y
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
f
o
e
h
t
g
n
i
r
u
d
l
a
t
i
p
a
c
e
r
a
h
s
0
4
2
3
,
4
6
1
0
2
,
h
c
r
a
M
t
s
1
3
d
n
e
e
h
t
t
a
e
c
n
a
l
a
B
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
f
o
6
1
-
5
1
0
2
r
a
e
y
y
t
i
u
q
e
n
i
s
e
g
n
a
h
C
e
h
t
g
n
i
r
u
d
l
a
t
i
p
a
c
e
r
a
h
s
l
a
t
o
T
)
e
r
o
r
c
n
i
`
(
r
e
h
t
O
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
d
e
n
i
a
t
e
R
i
s
g
n
n
r
a
E
e
v
r
e
s
e
R
l
a
r
e
n
e
G
d
e
s
a
B
e
r
a
h
S
s
t
n
e
m
y
a
P
s
e
r
u
t
n
e
b
e
D
n
o
i
t
p
m
e
d
e
R
t
n
u
o
c
c
A
e
v
r
e
s
e
R
e
v
r
e
s
e
R
s
e
i
t
i
r
u
c
e
S
i
m
u
m
e
r
P
e
v
r
e
s
e
R
l
a
t
i
p
a
C
e
v
r
e
s
e
R
n
o
i
t
p
m
e
d
e
R
l
a
t
i
p
a
C
e
v
r
e
s
e
R
l
s
u
p
r
u
S
d
n
a
s
e
v
r
e
s
e
R
t
n
e
m
t
o
l
l
a
.
p
p
a
e
r
a
h
S
i
g
n
d
n
e
p
y
e
n
o
m
L
A
T
I
P
A
C
E
R
A
H
S
Y
T
I
U
Q
E
.
A
i
i
g
n
n
n
g
e
b
e
h
t
t
a
e
c
n
a
l
a
B
6
3
2
3
,
5
1
0
2
,
l
i
r
p
A
t
s
1
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
f
o
Y
T
I
U
Q
E
R
E
H
T
O
.
B
6
1
0
2
H
C
R
A
M
1
3
N
O
S
A
,
8
0
5
9
2
2
,
1
9
9
1
,
5
2
7
4
2
,
,
0
1
2
3
5
1
,
0
2
7
1
1
1
,
9
8
0
8
4
,
8
4
1
9
2
7
1
g
n
i
t
r
o
p
e
r
e
h
t
i
f
o
g
n
n
n
g
e
b
e
h
t
i
t
a
e
c
n
a
a
B
l
2
2
2
8
2
,
)
9
3
0
6
(
,
)
0
2
2
1
(
,
-
7
8
2
-
-
-
-
8
3
8
4
8
3
7
2
,
)
9
3
0
6
(
,
)
0
2
2
1
(
,
-
-
-
-
-
)
0
0
0
2
2
(
,
0
0
0
2
2
,
,
8
5
7
0
5
2
,
9
2
8
2
,
0
5
8
2
2
,
,
0
1
2
5
7
1
,
-
-
-
-
)
2
(
8
1
-
-
-
-
-
-
-
-
-
8
9
2
-
-
-
-
-
-
-
-
-
-
7
1
1
1
,
7
8
3
8
4
,
8
4
1
9
2
-
-
-
-
)
9
(
8
r
a
e
y
e
h
t
r
o
f
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
l
a
t
o
T
5
1
0
2
,
l
i
r
p
A
t
s
1
.
e
.
i
d
o
i
r
e
p
s
d
n
e
d
v
D
i
i
i
i
d
n
e
d
v
d
n
o
x
a
T
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
f
o
d
n
e
e
h
t
t
a
e
c
n
a
a
B
l
6
1
0
2
,
h
c
r
a
M
t
s
1
3
s
n
o
i
t
p
O
k
c
o
t
S
e
e
y
o
p
m
E
n
O
l
i
s
g
n
n
r
a
e
d
e
n
a
t
e
r
i
)
m
o
r
f
(
/
o
t
r
e
f
s
n
a
r
T
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
l
a
t
o
T
)
e
r
o
r
c
n
i
`
(
r
e
h
t
O
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
d
e
n
i
a
t
e
R
i
s
g
n
n
r
a
E
e
v
r
e
s
e
R
l
a
r
e
n
e
G
d
e
s
a
B
e
r
a
h
S
s
t
n
e
m
y
a
P
s
e
r
u
t
n
e
b
e
D
n
o
i
t
p
m
e
d
e
R
t
n
u
o
c
c
A
e
v
r
e
s
e
R
e
v
r
e
s
e
R
s
e
i
t
i
r
u
c
e
S
i
m
u
m
e
r
P
e
v
r
e
s
e
R
l
a
t
i
p
a
C
e
v
r
e
s
e
R
n
o
i
t
p
m
e
d
e
R
l
a
t
i
p
a
C
e
v
r
e
s
e
R
l
s
u
p
r
u
S
d
n
a
s
e
v
r
e
s
e
R
t
n
e
m
t
o
l
l
a
.
p
p
a
e
r
a
h
S
i
g
n
d
n
e
p
y
e
n
o
m
7
1
0
2
H
C
R
A
M
1
3
N
O
S
A
,
8
5
7
0
5
2
,
9
2
8
2
,
0
5
8
2
2
,
,
0
1
2
5
7
1
,
7
1
6
3
3
,
2
9
1
2
,
5
2
4
1
3
,
-
-
7
8
6
-
-
-
-
)
0
9
7
4
2
(
,
0
9
7
4
2
,
,
2
6
0
5
8
2
,
1
2
0
5
,
5
8
4
9
2
,
,
0
0
0
0
0
2
,
8
1
-
-
)
2
(
6
1
7
1
1
1
,
7
8
3
8
4
,
8
4
1
9
2
-
-
-
7
1
1
1
,
-
-
3
9
6
0
8
0
9
4
,
-
-
-
8
4
-
-
-
1
9
2
8
-
-
4
)
4
(
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
f
o
d
n
e
e
h
t
t
a
e
c
n
a
a
B
l
7
1
0
2
,
h
c
r
a
M
t
s
1
3
s
n
o
i
t
p
O
k
c
o
t
S
e
e
y
o
p
m
E
n
O
l
r
a
e
y
e
h
t
r
o
f
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
l
a
t
o
T
i
s
g
n
n
r
a
e
d
e
n
a
t
e
r
i
)
m
o
r
f
(
/
o
t
r
e
f
s
n
a
r
T
g
n
i
t
r
o
p
e
r
e
h
t
i
f
o
g
n
n
n
g
e
b
e
h
t
i
t
a
e
c
n
a
a
B
l
6
1
0
2
,
l
i
r
p
A
t
s
1
.
e
.
i
d
o
i
r
e
p
d
r
a
o
B
e
h
t
f
o
f
l
a
h
e
b
n
o
d
n
a
r
o
F
e
t
a
d
n
e
v
e
f
o
t
r
o
p
e
R
r
u
o
r
e
p
s
A
I
I
Y
T
U
Q
E
N
S
E
G
N
A
H
C
F
O
T
N
E
M
E
T
A
T
S
,
7
1
0
2
H
C
R
A
M
T
S
1
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
287
r
o
t
c
e
r
i
i
D
g
n
g
a
n
a
M
&
n
a
m
r
i
a
h
C
-
s
r
o
t
c
e
r
i
D
e
v
i
t
u
c
e
x
E
s
r
o
t
c
e
r
i
D
a
r
s
i
M
k
o
h
s
A
n
i
a
J
.
C
k
a
p
D
i
.
f
o
r
P
.
f
o
r
P
r
a
k
l
e
h
s
a
M
.
A
R
.
.
r
D
r
u
p
a
K
.
.
V
D
.
r
D
l
i
a
h
b
u
n
i
a
Z
l
i
d
A
i
n
a
b
m
A
.
M
a
t
i
N
l
a
r
j
u
G
h
g
n
i
S
r
e
d
n
m
a
R
i
i
n
a
b
m
A
.
.
D
M
i
i
n
a
w
s
e
M
n
a
w
s
e
M
.
.
.
R
N
.
R
H
d
a
s
a
r
P
.
.
S
M
P.
a
t
k
a
h
B
l
i
p
a
K
.
K
P.
.
L
.
M
i
d
e
v
i
r
T
P.
Y
.
s
t
n
a
t
n
u
o
c
c
A
d
e
r
e
t
r
a
h
C
.
o
C
&
a
r
d
n
e
j
a
R
r
o
F
P
L
L
s
l
l
e
S
&
s
n
i
k
s
a
H
e
t
t
i
o
l
e
D
r
o
F
s
t
n
a
t
n
u
o
c
c
A
d
e
r
e
t
r
a
h
C
h
a
h
S
&
i
d
e
v
r
u
t
a
h
C
r
o
F
s
t
n
a
t
n
u
o
c
c
A
d
e
r
e
t
r
a
h
C
y
r
a
t
e
r
c
e
S
y
n
a
p
m
o
C
n
a
m
a
r
u
h
t
e
S
.
K
r
e
n
t
r
a
P
h
a
h
S
.
.
R
A
i
r
a
h
c
a
t
a
k
n
e
V
h
t
n
a
k
i
r
S
l
a
w
r
a
g
A
k
o
A
l
i
n
a
J
.
B
.
A
r
e
n
t
r
a
P
i
d
e
v
r
u
t
a
h
C
.
D
h
s
e
j
a
R
r
e
n
t
r
a
P
r
e
c
ffi
O
l
i
a
i
c
n
a
n
F
f
e
h
C
t
n
o
J
i
i
r
e
c
ffi
O
l
i
a
i
c
n
a
n
F
f
e
h
C
i
7
1
0
2
,
4
2
l
i
r
p
A
:
e
t
a
D
i
a
b
m
u
M
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONStandalone Financial Statements
288
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2017
A: CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Tax as per Statement of Profit and Loss
Adjusted for:
(Profit) / Loss on Sale / Discard of Assets (Net)
Depreciation / Amortisation and Depletion Expense
Effect of Exchange Rate Change
Net Gain on 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 flow from Operating Activities
B: CASH FLOW FROM INVESTING ACTIVITIES
Purchase of tangible and intangible assets
Proceeds from disposal of tangible and intangible assets
Investments in Subsidiaries / Trusts
Disposal of investments in Subsidiaries
Purchase of Other Investments
Proceeds from sale of financial assets
Net cash flow for other financial assets
Interest Income
Dividend Income from Subsidiary and Associates
Dividend Income from Others
Net Cash flow (Used in) Investing Activities
(` in crore)
2016-17
2015-16
40,777
(504)
8,465
(2,062)
(4,116)
(271)
(3,535)
2,723
41,477
(1,857)
(5,984)
27,374
61,010
(9,560)
51,450
(30,266)
1,452
(66,498)
26,461
(6,09,377)
6,19,551
1,304
2,153
10
261
36,016
20
8,590
(2,911)
(2,788)
(691)
(4,169)
2,562
36,629
220
8,517
6,210
51,576
(8,129)
43,447
(20,216)
293
(25,255)
444
(6,68,990)
6,68,877
(917)
3,850
47
644
(54,949)
(41,223)
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2017
C: CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Issue of Equity 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 flow from/(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 8)
289
(` in crore)
2016-17
2015-16
692
4
10,065
(15,329)
8,284
-
(5,355)
(1,639)
(5,138)
6,892
1,754
283
8
7,189
(4,591)
1,843
(7,259)
(4,376)
(6,903)
(4,679)
11,571
6,892
*
Include towards Unclaimed Dividend of ` 241 crore (Previous Year ` 223 crore)
Note:
Other Receivables from Subsidiary aggregating to ` Nil (Previous Year ` 3,263) 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
Mumbai
Date : April 24, 2017
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
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
Nita M. Ambani
Raminder Singh Gujral
- Chairman & Managing Director
Executive Directors
Directors
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATIONStandalone Financial Statements 290
A.
CORPORATE INFORMATION
Reliance Industries Limited (“the Company”) is a listed entity incorporated in India.
The addresses of its registered office and principal place of business are disclosed in the introduction to the annual report.
SIGNIFICANT ACCOUNTING POLICIES
B.
B.1 BASIS OF PREPARATION AND PRESENTATION
The financial statements have been prepared on the historical cost basis except for following assets and liabilities which have been
measured at fair value amount:
i)
ii)
iii)
Certain financial assets and liabilities (including derivative instruments),
Defined benefit plans - plan assets and
Equity settled share based payments
The financial statements of the Company have been prepared to comply with the Indian Accounting standards (‘Ind AS’), including
the rules notified under the relevant provisions of the Companies Act, 2013.
Upto the year ended March 31, 2016, the Company has prepared its financial statements in accordance with the requirement of
Indian Generally Accepted Accounting Principles (GAAP), which includes Standards notified under the Companies (Accounting
Standards) Rules, 2006 and considered as “Previous GAAP”.
These financial statements are the Company`s first Ind AS standalone financial statements.
Company’s financial statements are presented in Indian Rupees (`), which is also its functional currency.
B.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Property, plant and equipment
Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated
depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable
to bringing the assets 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 costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use, are
considered as pre - operative expenses and disclosed under Capital Work - in - Progress.
Depreciation on property, plant and equipment is provided using written down value method except in case of certain assets
from Refining segment and Petrochemical segment & SEZ units / developer which are depreciated using straight line method.
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;
Particular
Fixed Bed Catalyst (useful life: 2 years or more)
Fixed Bed Catalyst (useful life: up to 2 years)
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
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.
Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset
is derecognised.
(b)
Leases
Leases are classified as finance leases whenever the terms of the lease, transfers substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
291
Leased assets: Assets held under finance leases are initially recognised as assets of the Company at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor
is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in Statement of Profit
and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Contingent rentals are
recognised as expenses in the periods in which they are incurred.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will
obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset
and the lease term.
Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the
lease term except where another systematic basis is more representative of time pattern in which economic benefits from the
leased assets are consumed.
(c)
Intangible assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less accumulated
amortisation/depletion and impairment loss, if any. Such cost includes purchase price, borrowing costs, and any cost directly
attributable to bringing the asset to its working condition for the intended use, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the intangible assets.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is
derecognised.
A summary of amortisation policies applied to the Company’s intangible assets to the extent of depreciable amount is, as
follows:
Particular
Technical know – how
Computer Software
Development Rights
Others
Depreciation
Over the useful life of the underlying assets
Over a period of 5 years
Depleted using the unit of production method. The cost of producing wells along with its
related facilities including decommissioning costs are depleted in proportion of oil and gas
production achieved vis-à-vis Proved Developed Reserves. The cost for common facilities
including its decommissioning costs are depleted using Proved Reserves.
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
(d) Research and Development Expenditure
Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are
charged to the Statement of Profit and Loss unless a product’s technological and commercial feasibility has been established,
in which case such expenditure is capitalised
(e)
Finance Cost
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 directly 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.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
292
(f)
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.
Cost of raw materials, chemicals, stores and spares, packing materials, trading and other products are determined on weighted
average basis.
(g)
Impairment of non-financial assets - property, plant and equipment and intangible assets
The Company assesses at each reporting date as to whether there is any indication that any property, plant and equipment
and intangible assets or group of assets, called cash generating units (CGU) may be impaired. If any such indication exists the
recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to
estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which
the asset belongs.
An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is higher of an asset’s fair value less cost of disposal and value in use. Value in use
is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects current
market assessments of the time value of money and risk specific to the assets.
The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable
amount.
(h) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time
is recognised as a finance cost.
Decommissioning liability
The Company records a provision for decommissioning costs towards site restoration activity. Decommissioning costs
are provided at the present value of future expenditure using a current pre-tax rate expected to be incurred to fulfill
decommissioning obligations and are recognized as part of the cost of the underlying assets. Any change in the present value
of the expenditure, other than unwinding of discount on the provision, is reflected as adjustment to the provision and the
corresponding asset. The change in the provision due to the unwinding of discount is recognized in the Statement of Profit and
Loss.
(i)
Employee Benefits Expense
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 Statement of Profit and Loss during the
period in which the employee renders the related service.
Defined Benefit Plans
The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of
resignation/superannuation. The gratuity is paid @15 days salary for every completed year of service as per the Payment of
Gratuity Act 1972.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
293
The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity payment to the
employees. The gratuity fund has been approved by respective IT authorities.
The liability in respect of gratuity 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.
Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.
Employee Separation Costs
Compensation to employees who have opted for retirement under the voluntary retirement scheme of the Company is
payable in the year of exercise of option by the employee. The Company recognises the employee separation cost when the
scheme is announced and the Company is demonstrably committed to it.
(j)
Tax Expenses
The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to
the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised
in other comprehensive income or equity.
-
-
Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of
each reporting period.
(k)
Share based payments
Equity-settled share based payments to employees and others providing similar services are measured at the fair value of
the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share based
payments transactions are set out in Note 26.3.
The fair value determined at the grant date of the equity-settled share based payments is expensed on a straight line basis over
the vesting period, based on the Company`s estimate of equity instruments that will eventually vest, with a corresponding
increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the original estimates, if any, is recognised in Statement of Profit and Loss such
that the cumulative expenses reflects the revised estimate, with a corresponding adjustment to the Share Based Payments
Reserve.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per
share.
(l)
Foreign currencies transactions and translation
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and
liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting
date.
Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss
except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency
borrowings that are directly attributable to the acquisition or construction of qualifying assets, are capitalized as cost of assets.
Additionally, exchange gains or losses on foreign currency borrowings taken prior to April 1, 2016 which are related to the
acquisition or construction of qualifying assets are adjusted in the carrying cost of such assets.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
294
Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange
rates at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value was measured. The gain or loss arising on translation of non-monetary
items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item
(i.e., translation differences on items whose fair value gain or loss is recognised in OCI or Statement of Profit and Loss are also
recognised in OCI or Statement of Profit and Loss, respectively).
(m) Revenue recognition
Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the
buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective
control or managerial involvement with the goods, and the amount of revenue can be measured reliably.
Revenue from rendering of services is recognised when the performance of agreed contractual task has been completed.
Revenue from sale of goods is measured at the fair value of the consideration received or receivable, taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.
Revenue from operations includes sale of goods, services, service tax, excise duty and adjusted for discounts (net), and gain/
loss on corresponding hedge contracts.
Interest income
Interest income from a financial asset is recognised using effective interest rate method.
Dividends
Revenue is recognised when the Company’s right to receive the payment has been established.
(n)
Financial instruments
Financial Assets
i)
A.
Initial recognition and measurement
All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or
loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using
trade date accounting.
B.
C.
D.
Subsequent measurement
a)
Financial assets carried at amortised cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to
hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
b)
Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
c)
Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are measured at FVTPL.
Investment in subsidiaries, Associates and Joint Ventures
The Company has accounted for its investments in subsidiaries, associates and joint venture at cost.
Other Equity Investments
All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and
Loss, except for those equity investments for which the Company has elected to present the value changes in
‘Other Comprehensive Income’.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
295
E.
Impairment of financial assets
In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating impairment of
financial assets other than those measured at fair value through profit and loss (FVTPL).
Expected credit losses are measured through a loss allowance at an amount equal to:
The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date); or
Full lifetime expected credit losses (expected credit losses that result from all possible default events over
the life of the financial instrument)
For trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to be
recognised from initial recognition of the receivables. The Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are
reviewed and changes in the forward looking estimates are analysed.
For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant
increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
ii)
Financial liabilities
A.
Initial recognition and measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of
recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.
B.
Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables
maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the
short maturity of these instruments.
iii) Derivative financial instruments and Hedge Accounting
The Company uses various derivative financial instruments such as interest rate swaps, currency swaps, forwards &
options and commodity contracts to mitigate the risk of changes in interest rates, exchange rates and commodity prices.
Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is
entered into and are also subsequently measured at fair value. Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and
Loss, except for the effective portion of cash flow hedges which is recognised in Other Comprehensive Income and later
to Statement of Profit and Loss when the hedged item affects profit or loss or treated as basis adjustment if a hedged
forecast transaction subsequently results in the recognition of a non-financial assets or non-financial liability.
Hedges that meet the criteria for hedge accounting are accounted for as follows:
a)
Cash flow hedge
The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments
to mitigate the risk of movement in interest rates and foreign exchange rates for foreign exchange exposure on
highly probable future cash flows attributable to a recognised asset or liability or forecast cash transactions. When
a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value
of the derivative is recognized in the cash flow hedging reserve being part of other comprehensive income. Any
ineffective portion of changes in the fair value of the derivative is recognized immediately in the Statement of Profit
and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting is
discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative
gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was
effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative gain or loss
previously recognized in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the
occurrence of the underlying transaction. If the forecasted transaction is no longer expected to occur, then the
amount accumulated in cash flow hedging reserve is reclassified in the Statement of Profit and Loss.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
296
b)
Fair Value Hedge
The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments
to mitigate the risk of change in fair value of hedged item due to movement in interest rates, foreign exchange
rates and commodity prices.
Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value
hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria
for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest
method is used is amortised to Statement of Profit and Loss over the period of maturity.
iv) Derecognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire
or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or
a part of a financial liability) is derecognized from the Company's Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.
(o) Accounting For Oil and Gas Activity
The Company has adopted Successful Efforts Method (SEM) of accounting for its Oil and Gas activities. The policy of
recognition of exploration and evaluation expenditure is considered in line with the principle of SEM. Seismic costs, geological
and geophysical studies, petroleum exploration license fees and general and administration costs directly attributable to
exploration and evaluation activities are expensed off. The costs incurred on acquisition of interest in oil and gas blocks
and on exploration and evaluation other than those which are expensed off are accounted for as Intangible Assets under
Development. All development costs incurred in respect of Proved reserves are also capitalized under Intangible Assets under
Development. Untill a well is ready to commence commercial production, the costs accumulated in Intangible Assets under
Development are classified as Intangible Assets corresponding to proved developed oil and gas reserves. The exploration and
evaluation expenditure which does not result in discovery of proved oil and gas reserves and all cost pertaining to production
are charged to the Statement of Profit and Loss.
The Company used technical estimation of reserves as per the Petroleum Resources Management System guidelines 2011 and
standard geological and reservoir engineering methods. The reserve review and evaluation is carried out annually.
Oil and Gas Joint Ventures are in the nature of joint operations. 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.
C.
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The preparation of the Company’s financial statements requires management to make judgement, estimates and assumptions that
affect the reported amount of revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.
a)
Estimation of oil and gas reserves
The determination of the Company's estimated oil and natural gas reserves requires significant judgements and estimates to
be applied and these are regularly reviewed and updated. Factors such as the availability of geological and engineering data,
reservoir performance data, acquisition and divestment activity, drilling of new wells, and commodity prices all impact on the
determination of the Company’s estimates of its oil and natural gas reserves. The Company bases its proved reserves estimates
on the requirement of reasonable certainty with rigorous technical and commercial assessments based on conventional
industry practice and regulatory requirements.
Estimates of oil and natural gas reserves are used to calculate depletion charges for the Company’s oil and gas properties. The
impact of changes in estimated proved reserves is dealt with prospectively by amortizing the remaining carrying value of the
asset over the expected future production. Oil and natural gas reserves also have a direct impact on the assessment of the
recoverability of asset carrying values reported in the financial statements.
Details on proved reserves and production both on product and geographical basis are provided in Note 31.2.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
297
b)
c)
d)
e)
f)
Decommissioning Liabilities
The liability for decommissioning costs are recognized when the Company has obligation to perform site restoration activity.
The recognition and measurement of decommissioning provisions involves the use of estimates and assumptions. These
include; the timing of abandonment of well and related facilities which would depend upon the ultimate life of the field,
expected utilization of assets by other fields, the scope of abandonment activity and pre-tax rate applied for discounting.
Depreciation / amortisation and useful lives of property plant and equipment / intangible assets
Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking
into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets
annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The
useful lives and residual values are based on the Company’s historical experience with similar assets and take into account
anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes
from previous estimates.
Recoverability of trade receivable
Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision
against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing
of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.
Provisions
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds
resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition
and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be
subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of
changing facts and circumstances.
Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication
exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash
Generating Units (CGU’s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or a groups of assets. Where the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less
costs of disposal, recent market transactions are taken into account, if no such transactions can be identified, an appropriate
valuation model is used.
g)
Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates.
The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on
Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
D.
FIRST TIME ADOPTION OF IND AS
The Company has adopted Ind AS with effect from 1st April 2016 with comparatives being restated. Accordingly the impact of
transition has been provided in the Opening Reserves as at 1st April 2015. The figures for the previous period have been restated,
regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.
a)
Exemptions from retrospective application
Business combination exemption
(i)
The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, “Business
Combinations” to business combinations consummated prior to April 1, 2015 (the “Transition Date”), pursuant to which
goodwill/capital reserve arising from a business combination has been stated at the carrying amount prior to the
date of transition under Indian GAAP. The Company has also applied the exemption for past business combinations to
acquisitions of investments in subsidiaries / associates / joint ventures consummated prior to the Transition Date.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
Reliance Industries Limited
Life is Beautiful. Life is Digital.
298
FINANCIAL STATEMENTS
NOTES TO THE STANDALONE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2017
Annual Report 2016-17
(ii)
Share-based payment transactions
Ind AS 101 encourages, but does not require, first time adopters to apply Ind AS 102 Share based Payment to equity
instruments that were vested before the date of transition to Ind AS. The Company has elected not to apply Ind AS 102
to options that vested prior to April 1, 2015.
(iii) Fair value as deemed cost exemption
The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value
at the transition date except for certain class of assets which are measured at fair value as deemed cost.
(iv) Cumulative translation differences
The Company has elected to apply Ind AS 21 - The Effects of changes in Foreign Exchange Rate prospectively.
Accordingly all cumulative gains and losses recognised are reset to zero by transferring it to retained earnings.
(v)
Long Term Foreign Currency Monetary Items
The Company continues the policy of capitalising exchange differences arising on translation of long term foreign
currency monetary items.
(vi)
Investments in subsidiaries, joint ventures and associates
The Company has elected to measure investment in subsidiaries, joint venture and associate at cost.
(vii) Decommissioning liabilities
The Company has elected to apply the transitional provision with respect to recognition of Decommissioning,
Restoration and Similar Liabilities.
Integrated Annual Report 2016-17
Standalone
Financial Statements
)
e
r
o
r
c
n
i
`
(
K
C
O
L
B
T
E
N
N
O
I
T
E
L
P
E
D
/
N
O
I
T
A
S
I
T
R
O
M
A
/
I
N
O
I
T
A
C
E
R
P
E
D
t
a
s
A
t
a
s
A
t
a
s
A
t
a
s
A
s
t
n
e
m
t
s
u
d
A
j
e
h
t
r
o
F
t
a
s
A
s
t
n
e
m
t
s
u
d
A
j
t
c
a
p
m
I
t
a
s
A
t
a
s
A
s
t
n
e
m
t
s
u
d
A
j
s
t
n
e
m
t
s
u
d
A
j
K
C
O
L
B
S
S
O
R
G
t
a
s
A
s
t
n
e
m
t
s
u
d
A
j
t
c
a
p
m
I
t
a
s
A
n
o
i
t
p
i
r
c
s
e
D
5
1
0
2
4
0
-
1
0
6
1
0
2
3
0
-
1
3
7
1
0
2
-
3
0
-
1
3
7
1
0
2
-
3
0
-
1
3
s
n
o
i
t
c
u
d
e
D
/
#
r
a
e
Y
6
1
0
2
-
4
0
-
1
0
/
s
n
o
i
t
i
d
d
A
/
S
A
D
N
I
n
o
5
1
0
2
4
0
-
1
0
7
1
0
2
-
3
0
-
1
3
s
n
o
i
t
c
u
d
e
D
/
s
n
o
i
t
i
d
d
A
/
6
1
0
2
-
4
0
-
1
0
/
s
n
o
i
t
i
d
d
A
/
)
s
n
o
i
t
c
u
d
e
d
(
n
o
i
t
i
s
n
a
r
T
)
s
n
o
i
t
c
u
d
e
d
(
S
A
D
N
I
n
o
n
o
i
t
i
s
n
a
r
T
5
1
0
2
-
4
0
-
1
0
I
T
N
E
M
P
U
Q
E
&
T
N
A
L
P
,
Y
T
R
E
P
O
R
P
.
1
I
I
S
T
N
E
M
E
T
A
T
S
L
A
C
N
A
N
F
E
N
O
L
A
D
N
A
T
S
E
H
T
O
T
S
E
T
O
N
,
7
1
0
2
H
C
R
A
M
T
S
1
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
8
3
4
6
3
,
2
8
6
6
3
,
0
8
7
6
3
,
-
5
5
7
7
,
6
1
1
0
1
,
4
4
9
9
,
4
0
7
9
7
5
5
,
1
8
1
7
6
,
0
4
3
2
,
3
7
2
1
,
3
1
1
9
0
2
3
9
4
1
8
8
1
6
,
7
4
0
6
7
,
9
1
1
2
,
8
4
0
1
,
2
1
1
5
0
2
1
2
1
2
1
3
6
4
7
,
1
5
5
9
7
,
8
0
7
1
,
2
8
9
2
1
1
7
0
2
3
1
1
0
1
4
6
8
4
,
5
6
1
2
9
,
6
6
0
3
,
8
2
5
2
,
7
9
4
3
1
4
0
1
3
6
3
-
-
1
1
2
4
4
4
2
-
-
5
3
-
-
2
9
1
2
1
5
1
9
3
1
3
5
5
,
0
7
8
3
1
3
7
2
1
8
9
2
4
7
4
4
,
5
5
0
7
8
,
0
0
2
2
,
9
1
2
2
,
2
7
4
7
6
3
1
0
3
4
3
-
5
2
1
5
3
4
1
1
2
5
,
1
9
3
9
7
4
9
3
0
6
7
2
,
5
9
9
0
2
1
,
,
0
5
6
2
3
1
,
,
0
7
8
6
3
1
,
,
3
8
5
4
0
1
,
7
6
4
6
1
4
7
,
4
3
6
7
9
,
9
4
7
6
,
299
8
7
1
5
6
,
9
1
4
0
1
,
4
9
9
6
9
,
1
1
9
3
1
,
6
0
9
5
,
,
3
8
2
8
2
1
,
9
8
-
9
8
2
1
-
2
1
2
1
-
2
1
6
0
3
0
1
6
1
3
-
-
-
-
-
-
6
0
3
0
1
6
1
3
7
7
-
7
7
,
4
8
0
1
2
1
,
,
2
6
6
2
3
1
,
,
2
8
8
6
3
1
,
,
9
9
8
4
0
1
,
7
6
4
6
1
4
7
,
0
5
9
7
9
,
6
2
8
6
,
5
0
1
1
,
6
7
1
7
2
5
4
,
9
9
1
1
,
4
3
1
9
6
4
5
,
0
4
0
1
,
8
8
1
4
9
7
,
5
1
9
1
6
5
2
,
3
6
3
3
3
,
6
1
1
8
,
4
2
9
3
1
,
9
7
0
8
,
1
8
8
4
1
,
9
7
1
7
,
6
3
0
1
,
8
4
2
6
1
,
5
7
8
7
3
,
,
8
0
0
5
3
1
,
,
3
4
5
7
4
1
,
,
0
3
1
3
5
1
,
,
4
7
7
2
4
1
,
-
-
-
8
9
8
9
5
6
5
5
6
1
2
7
3
8
9
4
3
4
5
2
1
,
0
7
6
8
,
3
4
8
6
9
3
2
,
0
8
3
2
3
,
0
0
1
1
,
9
1
7
6
3
,
,
9
6
6
4
3
1
,
3
5
1
1
6
2
7
2
1
,
7
3
3
2
5
1
,
9
4
3
8
,
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
2
8
4
,
-
2
2
8
4
,
2
2
8
4
,
-
7
8
3
9
3
0
4
,
4
4
8
1
8
,
9
0
8
1
,
0
4
7
1
,
3
3
4
7
0
3
4
9
2
2
3
5
8
8
0
9
,
9
2
2
0
1
9
3
2
4
2
1
1
9
,
2
8
7
3
4
2
2
,
6
8
2
6
2
,
,
1
8
7
1
4
2
,
9
4
5
8
1
7
1
1
,
,
2
1
6
0
3
2
,
8
4
6
0
1
,
0
8
7
6
3
,
7
2
3
2
1
,
,
6
1
7
1
7
1
,
4
7
7
4
,
0
1
5
3
,
9
0
6
0
2
6
3
2
4
6
4
,
3
5
4
1
4
2
,
1
-
6
3
9
4
5
5
2
-
-
7
3
1
2
8
9
1
7
6
1
,
7
0
1
9
,
0
6
4
8
4
2
7
2
5
8
1
-
9
4
5
8
1
7
1
1
,
8
2
6
0
1
,
6
8
4
2
,
3
5
4
6
,
9
8
6
1
,
2
8
6
6
3
,
4
4
2
9
3
8
4
3
,
9
9
5
1
,
9
1
3
4
,
7
6
2
3
,
4
8
5
2
7
5
2
2
4
6
4
2
6
6
0
1
,
,
2
0
1
3
6
1
,
,
4
8
2
0
3
2
,
0
7
1
4
5
2
8
3
6
5
5
3
-
4
4
0
1
,
7
7
0
4
1
,
-
-
-
-
-
-
-
-
4
0
4
8
1
,
2
9
2
1
4
,
9
4
1
4
,
3
1
0
3
,
6
4
5
6
1
5
7
8
3
6
4
8
1
6
9
,
,
5
2
0
9
4
1
,
,
8
8
5
0
7
1
,
8
1
3
0
1
8
2
3
-
-
-
-
-
-
8
1
3
0
1
8
2
3
-
-
-
-
-
-
8
1
3
0
1
8
2
3
:
s
t
e
s
s
A
e
l
b
g
n
a
T
i
l
d
n
a
L
d
o
h
e
s
a
e
L
)
1
4
e
t
o
N
r
e
f
e
R
(
l
d
n
a
L
d
o
h
e
e
r
F
)
1
4
e
t
o
N
r
e
f
e
R
(
:
s
t
e
s
s
A
n
w
O
s
g
n
d
i
l
i
u
B
i
y
r
e
n
h
c
a
M
&
t
n
a
P
l
s
n
o
i
t
a
l
l
a
t
s
n
I
l
a
c
i
r
t
c
e
E
l
s
e
r
u
t
x
i
F
&
e
r
u
t
i
n
r
u
F
$
s
t
n
e
m
p
u
q
E
i
s
e
l
c
i
h
e
V
i
s
p
h
S
s
r
e
t
p
o
c
i
l
e
H
&
s
t
f
a
r
c
r
i
A
:
s
t
e
s
s
A
d
e
s
a
e
L
l
a
t
o
T
-
b
u
S
i
y
r
e
n
h
c
a
M
&
t
n
a
P
l
l
a
t
o
T
-
b
u
S
i
s
p
h
S
3
6
0
1
,
4
7
3
0
3
,
5
1
2
8
,
3
2
1
4
5
,
,
8
9
4
1
2
1
,
,
4
0
9
5
9
2
,
4
6
9
4
6
9
3
1
5
1
,
1
0
6
3
,
3
0
0
1
,
4
0
3
1
4
,
-
-
-
6
6
2
5
5
4
3
,
-
7
8
4
3
,
5
0
2
5
1
,
7
7
9
5
9
5
3
,
9
4
8
7
3
,
9
7
1
9
,
0
0
6
1
5
,
,
2
1
2
2
8
2
,
4
0
4
8
1
,
2
9
2
1
4
,
,
6
1
9
0
7
1
,
7
4
2
9
1
4
1
2
2
,
-
0
8
4
2
,
4
8
8
0
2
,
-
-
8
5
9
8
4
3
3
,
)
5
2
0
6
1
(
,
0
6
6
1
5
,
-
9
7
1
9
,
)
5
2
0
6
1
(
,
5
4
1
5
6
,
7
6
2
5
2
,
,
1
6
0
6
3
2
,
s
e
e
F
w
o
h
w
o
n
K
l
a
c
i
n
h
c
e
T
*
:
s
t
e
s
s
A
e
l
b
g
n
a
t
n
i
I
e
r
a
w
t
f
o
S
s
s
e
r
g
o
r
P
-
n
i
-
k
r
o
W
a
t
i
p
a
C
l
)
1
4
e
t
o
N
r
e
f
e
R
(
)
B
+
A
(
l
a
t
o
T
)
B
(
l
a
t
o
T
s
r
e
h
t
O
r
e
d
n
u
s
t
e
s
s
A
e
b
g
n
a
t
n
l
i
I
i
s
t
h
g
R
t
n
e
m
p
o
e
v
e
D
l
)
A
(
l
a
t
o
T
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
s
i
l
i
a
t
i
p
a
c
)
e
r
o
r
c
1
5
2
`
r
a
e
y
s
u
o
v
e
r
P
(
e
r
o
r
c
5
0
2
`
f
o
n
o
i
t
a
i
c
e
r
p
e
d
s
e
d
u
l
c
n
i
r
a
e
y
e
h
t
r
o
f
n
o
i
t
a
i
c
e
r
p
e
D
d
e
t
a
r
e
n
e
g
y
l
l
a
n
r
e
t
n
i
n
a
h
t
r
e
h
t
O
i
s
t
n
e
m
p
u
q
e
e
c
ffi
o
s
e
d
u
l
c
n
I
t
n
e
m
p
o
e
v
e
D
l
$
*
#
02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
300
1.1
Leasehold Land includes ` 778 crore (Previous Year ` 777 crore) in respect of which lease-deeds are pending execution.
1.2 Buildings includes :
i)
ii)
Cost of shares in Co-operative Societies ` 2,00,200 (Previous Year ` 1,99,950).
` 135 crore (Previous Year ` 135 crore) in shares of Companies / Societies with right to hold and use certain area of
Buildings.
1.3
Intangible Assets - Others includes :
i)
ii)
Jetties amounting to ` 812 crore (Previous Year ` 812 crore), the Ownership of which vests with Gujarat Maritime Board.
` 7,403 crore (Previous Year ` 8,367 crore) in preference shares of subsidiaries and lease premium paid with right to hold
and use Land and Buildings.
1.4 Capital Work-in-Progress and Intangible Assets under Development includes :
i)
ii)
` 15,544 crore (Previous Year ` 11,022 crore) on account of project development expenditure.
` 11,526 crore (Previous Year ` 18,646 crore) on account of cost of construction materials at site.
1.5 Project Development Expenditure
(in respect of Projects upto 31st March, 2017, included under Capital Work-in-Progress and Intangible Assets under
Development)
Opening Balance
Add: Transferred from Statement of Profit and Loss
(Refer Note 28 - Other Expenses)
Interest Expenses (Refer Note 27)
Less: Project Development Expenses Capitalised during the year
Closing Balance
2016-17
2015-16
11,022
6,770
(` in crore)
1,961
2,852
2,507
2,302
4,813
15,835
291
15,544
4,809
11,579
557
11,022
1.6
Additions in plant and machinery, Capital work-in-progress, Intangible Assets - Development Rights and Intangible assets
under Development includes ` 2,166 crore (net loss) [Previous Year ` 8,605 crore (net loss)] on account of exchange difference
during the year.
1.7
For Properties pledged as security - refer note 15.1.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
301
(` in crore)
Particulars
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
Units Amount
Units Amount
2. NON-CURRENT INVESTMENTS
Investments measured at
Amortised Cost
In Preference Shares of
Associate Company
Unquoted, fully paid up
9% Non Cumulative Redeemable Preference
Shares of Reliance Gas Transportation
Infrastructure Limited of ` 10 each
In Government Securities
Unquoted
6 Years National Savings Certificates
(Deposited with Sales Tax Department and
Other Government Authorities) [` 33,077
(Previous Year ` 89,497 and ` 87,420)]
Total of Investments measured at
Amortised Cost
Investments measured at Cost
In Equity Shares of Associate Companies
Quoted, fully paid up
Reliance Industrial Infrastructure Limited of
` 10 each
In Equity Shares of Associate Companies
Unquoted, fully paid up
Gujarat Chemicals 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 Years ` 40,40,000)]
Reliance LNG Limited of ` 10 each
[` Nil; (Previous Years ` 2,25,000)]
In Equity Shares of Joint Venture
Company
Unquoted, fully paid up
Jio Payments Bank Limited of ` 10 each
In Equity Shares of Subsidiary Companies
Unquoted, fully paid up
Reliance Energy Generation & Distribution
Private Limited of ` 10 each
Reliance Ethane Holding Pte Ltd of $ 1 each
Reliance Gas Pipelines Limited of ` 10 each
Reliance Global Energy Services (Singapore)
Pte.Ltd of SGD 1 each
Reliance Global Business B.V. of Euro 0.01 each
(01.04.2015 ` 1,25,400)
Reliance Global Energy Services Limited (UK)
of GBP 1 each
50,00,00,000
3,324
50,00,00,000
3,120
50,00,00,000
2,928
3,324
3,120
2,928
-
-
-
-
-
-
3,324
3,120
2,928
68,60,064
68,60,064
16
16
16
16
68,60,064
64,29,20,000
64
64,29,20,000
64
64,29,20,000
62,63,125
11,08,500
52,00,000
-
9,24,00,000
1
4
-
-
69
92
92
62,63,125
11,08,500
52,00,000
22,500
-
12,50,000
1
12,50,000
1
4
-
-
69
-
-
1
62,63,125
11,08,500
52,00,000
22,500
-
12,50,000
15,85,00,000
37,30,00,000
15,00,000
1,010
373
65
18,20,60,000
15,00,00,000
-
1,151
150
-
12,11,60,000
15,00,00,000
-
-
5,00,000
-
32
-
-
-
-
2,00,000
-
16
16
64
1
4
-
-
69
-
-
1
752
150
-
-
-
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
302
Particulars
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
Reliance Jio Messaging Services Private
Limited of `10 each
Reliance LNG Limited of ` 10 each
[` 2,25,000; (Previous Year ` Nil)]
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 `10 each
[` 5,00,000; (Previous Year ` 5,00,000)]
Reliance Ventures Limited of ` 10 each
RIL (Australia) PTY Limited of AUD 1 each
[` Nil; (Previous Year ` 14,07,840)]
In Preference Shares of Subsidiary
Companies
Unquoted, fully paid up
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
9% Non-Cumulative Optionally Convertible
Preference Shares of Reliance Jio Infocomm
Limited of ` 10 each
Reliance Global Business B.V. 'A' Class Shares
of Euro 0.01 each
6% Non-Cumulative Optionally Convertible
Preference Shares of Reliance Energy
Generation & Distribution Limited of ` 10 each
6% Non-Cumulative Optionally Convertible
Preference Shares of Reliance Gas Pipeplines
Limited of ` 10 each
6% Non-Cumulative Optionally Convertible
Preference Shares of Reliance Industrial
Investment & Holding Limited of ` 10 each
6% Non-Cumulative Optionally Convertible
Preference Shares of Reliance Universal
Traders Private Limited of ` 10 each
In Preference Shares of Subsidiary
Company
Unquoted, partly paid up
9% Non-Cumulative Optionally Convertible
Preference Shares of Reliance Jio Infocomm
Limited of ` 10 each (` 6.22 each paid up)
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
148
14,75,04,400
Units Amount
148
14,75,04,400
Units Amount
148
14,75,04,400
(` in crore)
42,450
46
42,450
46
42,450
46
44,74,74,90,000
9,73,28,000
44,747 44,74,74,90,000
7,45,14,000
97
44,747 29,74,74,90,000
5,50,000
75
29,747
1
22,500
-
-
-
-
-
5,66,70,00,000
46,40,28,117
5,667
464
5,66,70,00,000
33,14,48,655
5,667
331
5,66,70,00,000
-
5,667
-
20,20,200
50,000
2
-
20,20,200
50,000
2
-
20,20,200
-
2
-
26,91,150
-
2,351
-
26,91,150
30,000
2,351
-
26,91,150
-
2,351
-
55,003
54,669
38,865
6,12,026
1,103
12,77,836
2,302
63,436
85
4,02,800
113
4,02,800
113
4,02,800
113
3,00,00,00,000
15,000
-
-
3,62,02,475
10,499
36,76,50,000
368
2,62,44,17,000
15,747
1,71,64,000
103
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,93,90,00,000
422
-
-
-
-
-
-
-
-
42,933
2,415
620
6,00,00,00,000
18,660
18,660
-
-
-
-
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 Particulars
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
Units Amount
Units Amount
303
(` in crore)
In Debentures of Subsidiary Companies
Unquoted, fully paid up
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 ` 5000
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 Ambit
Trade Private Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully
Convertible Debentures of Reliance Gas
Pipelines Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully
Convertible Debentures of Reliance Prolific
Commercial Private Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully
Convertible Debentures of Reliance Prolific
Traders Private Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully
Convertible Debentures of Reliance Universal
Traders Private Limited of ` 10 each
Zero Coupon Unsecured Optionally
Fully Convertible Debentures of Reliance
Progressive Traders Private Limited of ` 10
each
Zero Coupon Unsecured Optionally
Fully Convertible Debentures of Reliance
Comtrade Private Limited of ` 10 each
(` 20,00,000)
Zero Coupon Unsecured Optionally Fully
Convertible Debentures of Reliance Eminent
Trading & Commercial Private Limited of ` 10
each
Zero Coupon Unsecured Optionally Fully
Convertible Debentures of Reliance Energy
Generation & Distribution Private Limited of
` 10 each
In Corpus of Trust
Unquoted
Investment in Corpus of Independent Media
Trust
Total of Investments measured at Cost
-
-
2,79,90,000
280
2,79,90,000
280
8,83,143
442
8,83,143
442
8,83,143
442
86,20,00,000
862 15,10,30,00,000
15,103
110 00 00 000
1,100
3,11,10,000
31
2,71,80,000
27
1,97,90,000
-
-
36,76,50,000
368
6,51,50,000
3,75,70,000
38
3,50,10,000
35
2,97,40,000
20
65
30
1,35,78,80,000
1,358
1,23,60,00,000
1,236
3,49,00,000
35
1,11,60,000
11
-
-
-
2,00,000
-
-
-
-
2,12,00,000
21
6,00,00,000
60
-
-
-
-
-
-
3,26,33,70,000
3,263
-
-
-
-
-
-
-
-
1,394
3,366
3,366
1,21,533
20,971
3,184
3,366
3,366
81,506
1,089
1,089
43,843
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
304
Particulars
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
Units Amount
Units Amount
(` in crore)
Investments measured at Fair Value
through Other Comprehensive Income
In Government Securities-Quoted
In Equity Shares
Unquoted, fully paid up
Petronet India Limited of ` 10 each
Petronet VK Limited of ` 10 each
[` 20,000; (Previous Year Nil)]
Ahmedabad Mega Clean Association of ` 10
each
[` 1,00,000; (Previous Year Nil)]
In Debentures or Bonds - Unquoted
Tata Sons Limited
In Debentures or Bonds - Quoted
AXIS Bank Limited
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
Oriental Bank of Commerce
Power Finance Corporation Limited
Power Grid Corporation of India Limited
Punjab National Bank
Rural Electrification Corporation Limited
Small Industries Development Bank of India
Limited
State Bank of India
Yes Bank Limited
Total of Investments measured at Fair Value
Through Other Comprehensive Income
1,00,00,000
19,99,990
10,000
-
2,500
-
9,500
6,300
57,70,976
-
5,750
15,09,485
39,44,752
9,29,946
4,000
42,71,793
-
2,500
25,05,720
-
-
1,000
-
10
-
-
10
-
-
246
-
2,697
560
619
-
748
851
425
104
413
461
-
246
285
-
-
100
7,755
7,765
4,647
3,541
1,00,00,000
-
-
820
-
100
43,850
900
57,70,976
5,850
9,750
16,24,821
39,44,752
9,29,946
-
43,05,143
980
-
25,14,520
2,500
10
-
-
10
83
83
-
10
3,209
90
597
468
1,081
4,237
417
101
-
3,828
102
-
1,171
251
-
-
-
-
15,562
20,302
1,00,00,000
-
-
820
-
100
55,350
-
42,62,612
8,050
11,250
-
39,44,752
9,49,946
-
42,79,543
950
-
12,100
-
950
-
10
-
-
10
83
83
-
10
4,618
-
441
836
1,186
-
417
104
-
1,242
99
-
1,230
-
96
-
10,279
13,913
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
305
(` in crore)
Particulars
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
Units Amount
Units Amount
Investments measured at Fair Value
Through Profit & Loss
In Fixed Maturity Plan - Quoted fully
paid up
AXIS Mutual Fund
Baroda Pioneer Mutual Fund
Birla Sunlife Mutual Fund
DHFL Pramerica Mutual Fund
DSP Blackrock Mutual Fund
HDFC Mutual Fund
ICICI Prudential Mutual Fund
IDFC Mutual Fund
Invesco Mutual Fund (Formerly known as
Religare Mutual Fund)
Kotak Mahindra Mutual Fund
L & T Mutual Fund
LIC Nomura MF
Reliance Mutual Fund
SBI Mutual Fund
Sundaram Mutual Fund
Tata Mutual Fund
UTI Mutual Fund
Total of Investments measured at
Fair Value Through Profit & Loss
Total Non Current Investments
Aggregate amount of quoted investments
Market Value of quoted investments
Aggregate amount of unquoted investments
Aggregate provision for diminution in value
of Investments
-
-
79,55,94,237
23,02,53,577
-
1,14,50,00,000
98,73,00,000
-
32,00,00,000
50,30,56,080
1,82,72,349
-
1,10,57,47,746
71,80,00,000
27,00,00,000
8,50,15,846
66,50,00,000
-
-
947
281
-
1,274
1,152
-
379
597
24
-
1,263
822
308
111
764
3,00,00,000
1,17,72,377
99,16,10,709
40,07,31,150
-
1,14,50,00,000
1,82,08,56,950
2,50,00,000
39,00,00,000
63,67,31,022
4,32,72,349
5,50,00,000
1,49,60,99,239
1,16,19,16,665
27,00,00,000
8,50,15,846
83,09,64,579
7,922
1,40,544
15,693
15,991
1,24,851
42
36
14
1,093
452
-
1,161
2,022
30
425
707
52
63
1,603
1,277
282
102
887
10,206
1,15,134
30,431
30,647
84,703
42
-
1,50,75,101
27,98,82,768
19,01,55,380
20,93,53,761
3,50,00,000
77,12,14,635
3,79,28,740
22,78,25,006
5,45,14,579
-
3,00,00,000
32,99,25,439
23,93,60,369
-
2,74,08,274
27,37,96,672
-
15
280
190
209
35
771
38
228
55
-
30
330
239
-
27
274
2,721
63,405
16,558
16,813
46,847
42
2.1 Category-wise Non current investment
Financial assets carried at amortised cost
Financial assets measured at cost
Financial assets measured at fair value through other
comprehensive income
Financial assets measured at Fair value through
Profit & Loss
Total Non current investment
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
3,324
1,21,533
7,765
7,922
3,120
81,506
20,302
10,206
2,928
43,843
13,913
2,721
1,40,544
1,15,134
63,405
2.2
The list of subsidiaries, joint ventures and associates along with proportion of ownership interest held and country of
incorporation are disclosed in note 37 of Consolidated Financial Statement.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
306
3.
LOANS (UNSECURED AND CONSIDERED GOOD)
Deposits with Related Parties (Refer Note 30(iv))
Loans and advances to Related parties (Refer Note 30(iv))
Other Loans and Advances*
Total
As at
31st March, 2017
As at
31st March, 2016
793
8,756
869
10,418
784
10,129
899
11,812
(` in crore)
As at
1st April, 2015
736
19,989
930
21,655
*
Other Loan and advance includes primarily fair valuation of interest free deposits.
A.
Loans and Advances in the nature of Loans given to Subsidiaries:
Name of the Company
Sr.
No.
LOANS - Non-Current
Reliance Industrial Investments and
Holdings Limited
Reliance Corporate IT Park Limited
Reliance Industries (Middle East) DMCC
LOANS - Current
Reliance Ventures Limited
Reliance Strategic Investments Limited
Reliance Gas Pipelines Limited
Reliance Jio Infocomm Limited
Reliance Jio Messaging Services Pvt
Limited
Reliance Ethane Holding Pte. Limited
Reliance Sibur Elastromers Private Limited
1
2
3
1
2
3
4
5
6
7
Total
As at
31st March, 2017
Maximum
Balance during
the year
As at
31st March, 2016
(` in crore)
Maximum
Balance during
the year
7,949
807
-
8,756
100
1,560
-
-
34
3
-
1,697
10,453
8,853
3,795
38
714
3,025
2,000
34
7
-
6,586
18,268
3,505
38
10,129
105
3,025
-
-
-
-
-
3,130
13,259
3,800
38
2,465
3,271
131
3,260
-
-
89
All the above loans and advances have been given for business purposes
Loans and Advances shown above, fall under the category of ‘Non-Current Loans’ are re-payable within 3 to 5 years.
B)
(i)
Investment by Reliance Industrial Investments and Holdings Limited in the shares of the Company
Sr.
No.
1
2
#
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
(` in crore)
Amount of
Loan Given
71
303
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.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
(ii)
Investment by Reliance Industrial Investments and Holdings Limited in Subsidiaries
Name of the Company
In Equity Shares :
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
Indiawin Sports Private Limited
Kanhatech Solutions Private Limited
Reliance Aerospace Technologies Limited
Reliance Aromatics and Petrochemicals Limited
Reliance Chemicals Limited
Reliance Commercial Land & Infrastructure Limited
Reliance Energy and Project Development Limited
Reliance Exploration & Production DMCC
Reliance Global Commercial Limited
Reliance Innovative Building Solutions Private Limited
Reliance Jio Digital Services Private Limited
Reliance Jio Infratel Private Limited
Reliance Jio Media Private Limited
Reliance Payment Solutions Limited
Reliance Petroinvestments Limited
Reliance Polyolefins Limited
Reliance Retail Finance Limited
Reliance Retail Insurance Broking Limited
Reliance Supply Solutions Private Limited - Class A
Reliance Supply Solutions Private Limited - Class B
Reliance Supply Solutions Private Limited - Class C
Reliance Trading Private Limited
Reliance Universal Commercial Limited
Reliance Universal Enterprises Limited
Reliance World Trade Private Limited
RIL Exploration & Production Mayanmar Company Limited
Name of the Company
In Preference Shares :
Sr.
No.
1
2
3
Reliance Energy & Project Development Limited
Reliance Exploration & Production DMCC
Reliance Jio Infocomm Limited
(iii)
(iv)
Investment by Reliance Ventures Limited in subsidiary:
In Equity Shares:
Sr.
No.
1
Model Economic Township Limited
Name of the Company
Name of the Company
Investment by Reliance Corporate IT Park Limited in subsidiaries:
In Equity Shares:
Sr.
No.
1
2
3
Reliance Commercial Trading Private Limited
Reliance Jio AsiaInfo Innovation Centre Limited
Reliance SMSL Limited (formerly known as Strategic Manpower Solutions Limited)
307
No. of Shares
26,50,000
6,80,00,000
14,00,000
10,09,300
10,10,600
5,30,10,000
10,09,280
1,76,200
50,000
6,46,93,950
1,00,00,000
10,00,000
8,60,10,000
11,50,00,000
88,77,554
10,10,000
20,20,000
40,00,000
13,69,22,912
1,000
3,702
10,50,000
50,000
64,25,000
1,000
74,999
No. of Shares
3,22,600
14,81,219
12,50,00,000
No. of Shares
9,70,00,000
No. of Shares
10,000
10,00,000
50,000
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
308
(v)
Name of the Company
Investment by Reliance Ethane Holding Pte. Limited in Subsidiaries:
In Equity Shares:
Sr.
No.
1
2
3
4
5
6
Ethane Crystal LLC
Ethane Emerald LLC
Ethane Opal LLC
Ethane Pearl LLC
Ethane Sapphire LLC
Ethane Topaz LLC
As at
31st March, 2017
As at
31st March, 2016
No. of Shares
2,74,60,300
2,58,80,300
2,58,37,500
2,75,72,500
2,58,37,500
3,58,37,500
(` in crore)
As at
1st April, 2015
4.
OTHER NON-CURRENT ASSETS
(Unsecured and Considered Good)
Capital Advances
Advances Income Tax (Net of Provision)
Others*
Total
*
Includes ` 295 crore (Previous Year ` 295 crore) deposited in gas pool account - Refer Note 31.4(b).
876
992
316
2,184
3,055
360
327
3,742
6,717
260
202
7,179
Advance Income Tax (Net of Provision)
At start of year
Charge for the year
Others#
Tax paid during the year
At end of year
#
Mainly pertains to Provision for tax on Other Comprehensive Income
5.
INVENTORIES
Raw Materials (Including Material In Transit)
Work-in-Progress
Finished Goods
Stock-in-Trade
Stores and spares
Total
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
360
(8,333)
(595)
9,560
992
260
(7,801)
(228)
8,129
360
As at
31st March, 2017
As at
31st March, 2016
16,225
4,837
9,208
55
3,693
34,018
14,285
2,871
7,595
68
3,215
28,034
260
(` in crore)
As at
1st April, 2015
18,974
5,209
9,409
87
2,872
36,551
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
Particulars
6.
CURRENT INVESTMENTS
Investments measured at Amortised Cost
Collateral Borrowing & Lending Obligation
Unquoted
Total of Investments measured at Amortised Cost
Investments measured at Fair Value through
Other Comprehensive Income
In Debentures or Bonds
Quoted, fully paid up
Housing Development Finance Corporation Limited
Infrastructure Development Finance Company Limited
Power Grid Corporation of India Limited
Rural Electrification Corporation Limited
In Debentures or Bonds
Unquoted, fully paid up
Tata Sons Limited
In Mutual Fund
Quoted
Canara Robeco Mutual Fund (CY : ` 30,77,925,
PY : ` 28,06,950 1st April, 2015 : ` 26,68,225)
Franklin Templeton Mutual Fund
HDFC Mutual Fund
IDFC Mutual Fund
Sundaram Mutual Fund
In Mutual Fund
Unquoted
AXIS Mutual Fund
Birla Sunlife Mutual Fund
DHFL Pramerica Mutual Fund
DSP Blackrock Mutual Fund
Franklin Templeton Mutual Fund
HDFC Mutual Fund
ICICI Prudential Mutual Fund
IDBI Mutual Fund
IDFC Mutual Fund
Indiabulls Mutual Fund
Invesco Mutual Fund (Formerly know as
Religare Mutual Fund)
JM Financial Mutual Fund
JP Morgan Mutual fund
Kotak Mahindra Mutual Fund
LIC Nomura Mutual fund
L&T Mutual Fund
Reliance Mutual Fund
SBI Mutual Fund
Sundaram Mutual fund
Tata Mutual fund
UTI Mutual Fund
309
As at 31st March, 2017
Units Amount
As at 31st March, 2016
Units Amount
(` in crore)
As at 1st April, 2015
Units Amount
-
-
-
-
-
-
-
-
-
-
-
605
-
-
605
3,517
1,000
-
50
2,50,000
-
48,46,69,171
-
-
636
828
141
-
43,07,32,136
2,227 1,46,19,24,195
46,29,44,484
13,27,46,938
2,15,42,067
2,696 1,74,66,09,455
4,108 3,14,03,88,295
-
2,179 2,55,89,69,249
6,74,35,163
41,81,745
-
598
-
-
-
876
-
442
24,22,28,910
-
35,75,78,239
-
41,31,50,203
4,005 2,93,95,30,183
47,97,91,326
57,48,55,030
57,52,39,255
95,15,58,881
853
154
949
1,621
22,313
-
-
-
-
-
2,50,000
-
48,46,69,171
-
-
47,11,06,416
79,16,98,011
42,04,44,404
10,19,08,846
-
1,99,70,78,642
3,24,46,75,382
-
1,79,15,74,045
-
31,44,283
-
-
39,03,49,468
-
35,48,12,327
3,25,06,60,654
45,15,37,935
12,50,80,733
57,52,39,255
94,34,73,340
-
-
800
95
-
5
900
-
-
-
100
100
495
-
3
-
498
216
216
4,850
-
20
-
2,150
2,50,000
-
-
66,34,34,177
550 3,21,11,51,755
96,41,00,960
6,85,74,208
-
-
550
512
20,05,73,403
3,594 3,56,86,60,992
13,86,83,158
1,091
28,23,96,274
168
-
26
2,224
57,02,90,339
3,593 3,37,79,73,042
13,37,083
95,16,34,428
-
23,56,532
-
3,305
87
699
309
-
766
-
566
24,22,28,910
13,99,57,033
48,42,43,154
4,83,83,953
35,83,46,129
3,326 3,23,10,83,691
62,44,11,092
57,48,55,030
34,20,77,650
1,488 1,26,11,83,027
831
684
869
24,138
25,588
1,417
3,822
1,205
75
6,519
241
6,675
627
843
-
969
3,745
200
1,262
-
415
285
202
952
399
466
3,700
1,103
632
479
2,351
25,546
32,779
Total of Investments measured at Fair Value
Through Other Comprehensive Income
22,918
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
310
Particulars
As at 31st March, 2017
Units Amount
As at 31st March, 2016
Units Amount
(` in crore)
As at 1st April, 2015
Units Amount
Investments measured at Fair Value Through
Profit & Loss
In Government Securities - Quoted *
In Debentures or Bonds
Quoted, fully paid up
Andhra Bank
Bank of India
Housing Development Finance Corporation Limited
ICICI Bank
IDFC Bank Limited (Formerly known as Infrastructure
Development Finance Company Limited)
Indian Railway Finance Corporation Limited
LIC Housing Finance Limited
National Bank for Agriculture and Rural Development
National Highways Authority of India
National Thermal Power Company Limited
Oriental Bank of Commerce
Power Finance Corporation Limited
Power Grid Corporation of India Limited
Punjab National Bank
Rural Electrification Corporation Limited
State Bank Of India
Yes Bank Limited
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
1,293
31
99
1,442
100
25
42
178
-
104
2
103
215
-
148
-
-
105
2,594
2,272
-
-
-
-
-
-
-
-
-
-
297
1,000
1,310
1,000
250
400
1,750
-
3,00,650
23
1,000
2,150
1,500
-
-
1,050
-
-
-
-
-
-
-
-
-
6,500
-
75
7,50,000
2,000
2,750
33,12,714
-
-
7,300
2,100
-
1,900
-
-
-
208
197
463
1,387
-
-
In Fixed Maturity Plan - Quoted, fully paid up
AXIS Mutual Fund
Baroda Pioneer Mutual Fund
Birla Sunlife Mutual Fund
DHFL Pramerica Mutual Fund
DSP Blackrock Mutual Fund
HDFC Mutual Fund
HSBC Mutual Fund
ICICI Prudential Mutual Fund
IDFC Mutual Fund
3,00,00,000
1,17,72,377
21,87,87,837
17,04,77,572
20,93,53,761
-
-
92,87,16,328
-
39
15
276
212
272
-
-
1,172
-
-
1,50,75,101
14,98,82,768
-
20,93,53,761
4,56,47,510
-
12,92,24,635
14,75,38,307
3,666
-
-
1,294
-
8
76
201
278
343
-
-
739
219
-
192
-
-
3,350
-
-
-
-
208
197
463
1,397
-
-
2,265
-
18
182
-
252
55
-
156
189
-
-
-
-
-
-
-
-
-
-
-
6,950
-
-
150
23,957
-
645
-
2,624
-
461
969
736
25,90,00,000
6,00,00,000
64,10,00,000
36,80,00,000
15,50,00,000
84,56,47,510
6,00,00,000
89,48,46,064
40,09,22,280
4,372
-
-
-
-
-
-
-
-
-
-
-
699
-
-
15
147
-
861
3
231
231
646
-
2,632
-
462
971
739
5,450
259
60
641
368
155
846
60
897
401
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
311
Particulars
Invesco Mutual Fund (Formerly know as Religare
Mutual Fund)
JP Morgan Mutual fund
Kotak Mahindra Mutual Fund
L & T Mutual Fund
LIC Nomura Mutual fund
Principal PNB Mutual Fund
Reliance Mutual Fund
SBI Mutual Fund
Sundaram Mutual Fund
Tata Mutual fund
UTI Mutual Fund
In Mutual Fund- Quoted
ICICI Prudential Mutual Fund
Kotak Mahindra Mutual Fund
Sundaram Mutual Fund
In Mutual Fund- Unquoted
AXIS Mutual Fund
Baroda Pioneer Mutual Fund
Birla Sunlife Mutual Fund
DHFL Pramerica Mutual Fund
DSP Blackrock Mutual Fund
Edelweiss Mutual Fund
HDFC Mutual Fund
ICICI Prudential Mutual Fund
IDFC Mutual Fund
Indiabulls Mutual Fund
Invesco Mutual Fund (Formerly know as Religare
Mutual Fund)
JM Financial Mutual Fund
Kotak Mahindra Mutual Fund
L & T Mutual Fund
Reliance Mutual Fund
SBI Mutual Fund
Sundaram Mutual Fund
UTI Mutual Fund
Total of Investments measured at Fair Value
Through Profit and Loss
Total Current Investments
Aggregate amount of quoted investments
Market Value of quoted investments
Aggregate amount of unquoted investments
As at 31st March, 2017
Units Amount
86
7,00,00,000
As at 31st March, 2016
Units Amount
28
2,28,25,006
(` in crore)
As at 1st April, 2015
Units Amount
70
7,00,00,000
-
24,81,89,521
2,50,00,000
5,62,49,204
-
39,03,51,492
44,39,16,666
-
-
16,59,64,579
1,66,50,000
5,70,000
-
54,91,20,567
-
78,68,34,038
9,40,86,642
37,40,91,486
23,91,85,878
1,34,13,46,064
1,18,22,39,894
1,30,48,92,684
7,53,48,014
5,81,30,023
-
84,73,13,658
20,05,53,753
1,30,83,95,051
53,51,91,009
11,70,01,509
55,37,82,528
-
322
32
71
-
488
568
-
-
206
3,759
156
52
-
208
948
-
3,057
100
860
251
1,840
1,967
1,854
80
405
-
2,402
294
2,423
1,007
341
1,033
18,862
28,988
51,906
10,731
10,731
41,175
-
11,45,14,578
-
3,21,69,789
-
-
15,03,60,369
-
2,74,08,274
2,28,32,093
1,66,50,000
5,70,000
-
6,59,60,044
7,83,14,262
19,98,33,489
10,09,60,780
-
9,65,71,057
49,84,18,726
66,86,76,540
55,34,30,728
13,12,04,305
11,45,61,254
20,94,33,717
70,96,87,310
4,92,02,764
65,73,20,449
24,64,62,740
-
8,00,26,087
-
138
-
41
-
-
183
-
34
28
1,304
133
45
-
178
70
128
220
106
-
100
520
890
716
150
149
235
1,265
51
698
341
-
126
5,765
16,528
42,116
9,949
9,949
32,167
10,50,00,000
40,00,00,000
19,50,00,000
18,28,13,373
2,50,00,000
30,00,00,000
64,50,00,000
8,80,00,000
17,00,00,000
13,50,00,000
1,66,50,000
5,70,000
4,43,27,649
-
-
8,36,75,211
2,43,52,942
-
-
-
26,24,59,687
50,03,92,546
-
9,92,35,165
20,94,33,717
20,50,03,232
2,00,00,000
9,52,48,074
5,08,30,350
-
-
105
400
195
184
25
300
645
88
170
135
6,004
144
49
51
244
-
-
126
25
-
-
-
371
629
-
123
220
316
20
100
70
-
-
2,000
19,165
52,044
18,501
18,501
33,543
*
Includes ` 595 crore (Previous Year ` 2,285 crore) given as collateral security.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
312
6.1 Category-wise current investment
Financial assets carried at amortised cost
Financial assets measured at Fair value through other
comprehensive income
Financial assets measured at Fair value through
Profit & Loss
Total Current investment
7.
TRADE RECEIVABLES
(Unsecured and Considered Good)
Trade receivables
Total
As at
31st March, 2017
As at
31st March, 2016
-
22,918
28,988
-
25,588
16,528
(` in crore)
As at
1st April, 2015
100
32,779
19,165
51,906
42,116
52,044
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
5,472
5,472
3,495
3,495
4,661
4,661
7.1
Trade receivables are netted with Bill discounting of ` 7,524 crore (previous year ` 6,732 crore)
8.
CASH AND CASH EQUIVALENTS
Cash on Hand
Balance with bank*
Cash and cash equivalents as per balance sheet
Cash and cash equivalent as per standalone statement of cash
flows
As at
31st March, 2017
As at
31st March, 2016
5
1,749
1,754
1,754
16
6,876
6,892
6,892
(` in crore)
As at
1st April, 2015
15
11,556
11,571
11,571
*
i.
ii.
iii.
8.1
Includes towards Unclaimed Dividend of ` 241 crore (Previous Year ` 223 crore)
Deposits of ` 10,87,926 (Previous Year ` 500 crore) with maturity of more than 12 months.
Also Includes fixed deposit of ` 1,335 crore (Previous Year ` 302 crore) Pledged as collateral securities.
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.
8.2
Please refer note 39 for details of Specified Bank Notes (SBN) held and transacted during the period 08/11/2016 to 30/12/2016.
9.
LOANS
(Unsecured and Considered Good)
Loans and Advances to related parties (Refer Note 30(iv))#
Loans Others
Total
#
Refer Note 3A for details of Loans.
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
4,250
650
4,900
4,973
-
4,973
6,763
-
6,763
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
313
(` in crore)
As at
1st April, 2015
547
988
1,004
2,539
As at
31st March, 2017
As at
31st March, 2016
176
1,194
2,002
3,372
776
1,190
757
2,723
10. OTHER FINANCIAL ASSETS
Interest Accrued on Investment
Deposits
Others*
Total
*
Other includes fair valuation of derivatives.
11.
TAXATION
Income tax recognised in Statement of Profit and Loss
Current tax
Deferred tax
Total income tax expenses recognised in the current year
The income tax expenses for the year can be reconciled to the accounting profit as follows:
Profit before tax
Applicable Tax Rate
Computed Tax Expense
Tax effect of :
Exempted income
Expenses disallowed
Additional allowances net of MAT Credit
Current Tax Provision (A)
Incremental Deferred Tax Liability on account of Tangible and Intangible Assets
Incremental Deferred Tax Asset on account of Financial Assets and Other Items
Deferred tax Provision (B)
Tax Expenses recognised in Statement of Profit and Loss (A+B)
Effective Tax Rate
Year Ended
31st March, 2017
(` in crore)
Year Ended
31st March, 2016
8,333
1,019
9,352
7,801
831
8,632
Year Ended
31st March, 2017
40,777
34.608%
14,112
Year Ended
31st March, 2016
36,016
34.608%
12,464
(2,707)
3,044
(6,116)
8,333
1,229
(210)
1,019
9,352
22.93%
(5,306)
3,378
(2,735)
7,801
824
7
831
8,632
23.97%
12. OTHER CURRENT ASSETS
(Unsecured and Considered Good)
Balance with customs, central Excise Authorities
Others#
Total
#
includes primarily prepaid expenses and claim receivables
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
3,436
1,423
4,859
3,400
905
4,305
2,490
1,065
3,555
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 314
As at
31st March, 2017
Units Amount
As at
31st March, 2016
Units Amount
(` in crore)
As at
1st April, 2015
Units Amount
13.
SHARE CAPITAL
Authorised Share Capital
Equity Shares of ` 10 each
Preference Shares of ` 10 each
500,00,00,000
100,00,00,000
5,000 500,00,00,000
1,000 100,00,00,000
6,000
5,000 500,00,00,000
1,000 100,00,00,000
6,000
5,000
1,000
6,000
Issued, Subscribed and Paid up:
Equity Shares of ` 10 each fully paid up
Less: Calls in arrears - by others
[` 2303 (Previous Year March 31, 2016
` 2,303 and April 01, 2015 ` 3,113)]
Total
13.1
13.2
13.3
13.4
Shares were allotted on conversion /
surrender of Debentures and Bonds,
conversion of Term Loans, exercise of
Warrants, against Global Depository
Shares (GDS) and re-issue of Forfeited
Equity Shares, since inception.
Shares held by subsidiaries, 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.
Shares held by associates
Shares were bought back and
extinguished in the last five years.
3,25,12,78,100
3,251 3,24,03,76,321
3,240 3,23,56,88,765
3,236
-
3,251
-
3,240
-
3,236
As at
31st March, 2017
Nos.
45,04,27,345
As at
31st March, 2016
Nos.
45,04,27,345
As at
1st April, 2015
Nos.
45,04,27,345
17,18,82,820
17,18,83,624
17,18,83,624
1,72,000
4,25,82,849
1,72,000
4,62,46,280
1,72,000
4,62,46,280
13.5 The details of shareholders holding more than 5% shares :
Name of the Shareholder
As at 31st March, 2017
No. of Shares
Devarshi Commercials LLP
Srichakra Commercials LLP
Life Insurance Corporation of India
Karuna Commercials LLP
Tattvam Enterprises LLP
35,54,00,205
34,44,47,637
26,26,13,009
25,40,83,498
21,57,15,804
As at 31st March, 2016
No. of Shares
%
held
As at 1st April, 2015
No. of Shares
%
held
29,26,02,727
9.03
29,69,44,782
9.18
%
held
10.93
10.59
8.08
7.81
6.63
13.6 The reconciliation of the number of shares outstanding is set out below :
Particulars
Equity Shares at the beginning of the year
Add: Shares issued on exercise of employee
stock options
Equity Shares at the end of the year
As at
31st March, 2017
No. of Shares
3,24,03,76,321
1,09,01,779
As at
31st March, 2016
No. of Shares
3,23,56,88,765
46,87,556
As at
1st April, 2015
No. of Shares
3,25,12,78,100
3,24,03,76,321
3,23,56,88,765
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
315
13.7 Share options granted under the Company‘s employee share option plan:
The Company has reserved issuance of 11,11,28,872(Previous year 12,20,30,651) 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 74,454 options at a price of ` 1,096 per option, plus all applicable taxes, as may be levied in this regard
on the Company (Previous year 14,967 options at a price of ` 887 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. Please refer note 26.3 for detail disclosure on Share based payments.
14. OTHER EQUITY
Capital Reserve
As per last Balance Sheet
Capital Redemption Reserve
As per last Balance Sheet
Share application money pending allotment
As per last Balance Sheet
Issue of Shares / Application money received
Share Based Payments Reserve Account
As per last Balance Sheet
On Employee Stock Options
Securities Premium Reserve
As per last Balance Sheet
Add : On issue of shares
Less: Calls in arrears - by others
[` 1,03,189 (Previous Year ` 1,03,189)]
Debentures Redemption Reserve
As per last Balance Sheet
General Reserve
As per last Balance Sheet
Add: Transferred from Retained Earnings
Retained Earnings
As per last Balance Sheet
Add: Profit for the year
Less: Appropriations
Transferred to General Reserve
Dividend on Equity Shares [Dividend per Share ` Nil
(Previous year ` 10.00)]
Interim Dividend on Equity Shares [Dividend per Share
` Nil (Previous year ` 10.50)]
Tax on Dividend
Other Comprehensive Income (OCI)
As per last Balance Sheet
Add: Movement in OCI (Net) during the year
Total
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
291
48
8
18
291
48
4
16
17
(9)
20
(2)
48,089
298
48,387
-
8
(4)
18
(2)
48,387
693
49,080
-
291
48
17
20
49,080
1,117
48,387
1,117
48,089
1,117
1,75,210
24,790
1,53,210
22,000
2,00,000
1,75,210
1,53,210
22,850
31,425
54,275
24,790
-
-
-
2,829
2,192
29,485
24,725
27,384
52,109
22,000
2,944
3,095
1,220
1,991
838
22,850
24,725
5,021
2,85,062
2,829
2,50,758
1,991
2,29,508
14.1 Share Application Money Pending Allotment represents application money received on account of Employees Stock Option Scheme.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
316
As at 31st March, 2017 As at 31st March, 2016
Non Current
Current Non Current
Current Non Current
(` in crore)
As at 1st April, 2015
Current
15. BORROWINGS
Secured - At amortised cost
Non Convertible Debentures
Long Term Maturities of Finance Lease Obligations
(Refer Note 30(ii))
Unsecured - At amortised cost
Bonds
Term Loans- from Banks
Total
1,003
-
1,003
23,979
53,741
77,720
78,723
133
-
133
536
5,474
6,010
6,143
1,137
66
1,203
133
28
161
22,607
54,020
76,627
77,830
2,974
11,649
14,623
14,784
1,270
94
1,364
20,303
54,382
74,685
76,049
164
27
191
827
7,426
8,253
8,444
15.1 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.
` 266 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.
15.2 Maturity Profile and Rate of Interest of Non Convertible Debentures are as set out below :
Rate of Interest
Non Current
6.25%
8.75%
10.75%
Total
2020-21
-
500
-
500
2018-19
133
-
370
503
Total
133
500
370
1,003
15.3 Finance Lease Obligations are secured against Leased Assets.
15.4 Maturity Profile and Rate of Interest of Bonds are as set out below :
Rate of
Interest
1.87%
2.06%
2.44%
2.51%
4.13%
4.88%
5.00%
5.875%#
6.34%
6.61%
7.63%
8.25%
9.38%
10.25%
10.50%
Total
Perpetual
Bonds
-
-
-
-
-
-
-
5,188
-
-
-
-
-
-
-
5,188
Non Current*
2096-97 2046-47 2044-45 2035-36 2027-28 2026-27 2025-26 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19
126
124
140
146
-
-
-
-
246
1,102
-
-
-
-
-
1,884
126
123
140
146
6,485
-
-
-
-
-
-
-
-
-
-
7,020
-
-
-
-
-
4,864
-
-
-
-
-
-
-
-
-
4,864
-
-
-
-
-
-
1,297
-
-
-
-
-
-
-
-
1,297
126
123
140
146
-
-
-
-
-
-
-
-
-
-
-
535
126
123
140
146
-
-
-
-
-
-
-
-
-
-
-
535
126
123
140
146
-
-
-
-
-
-
-
-
-
-
-
535
126
124
140
146
-
-
-
-
-
-
-
-
-
-
-
536
126
124
140
146
-
-
-
-
-
-
-
-
-
-
-
536
126
124
140
146
-
-
-
-
-
-
-
-
-
-
-
536
-
-
-
-
-
-
-
-
-
-
-
220
143
-
-
363
-
-
-
-
-
-
-
-
-
-
32
-
-
-
-
32
-
-
-
-
-
-
-
-
-
-
-
-
-
81
-
81
-
-
-
-
-
-
-
-
-
-
-
-
-
-
62
62
(` in crore)
Current
2017-18
133
-
-
133
(` in crore)
Current
2017-18
126
124
140
146
-
-
-
-
-
-
-
-
-
-
-
536
Total
1,008
988
1,120
1,168
6,485
4,864
1,297
5,188
246
1,102
32
220
143
81
62
24,004
*
#
Including ` 25 crore as prepaid finance charges.
Senior Perpetual Notes have no fixed maturity date and the Company will have an option, to redeem the Notes, in whole or in part, on any semi-
annual interest payment date on or after February 5, 2018
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
15.6 Maturity Profile of Unsecured Term Loans are as set out below :
Term Loans- from Banks*
*
Including ` 399 crore as prepaid finance charges.
Maturity Profile
6-10 years
9,004
2-5 years
45,136
Non Current
Total
54,140
As at
31st March, 2017
As at
31st March, 2016
317
(` in crore)
Current
1 year
5,474
(` in crore)
As at
1st April, 2015
16. PROVISIONS - NON CURRENT
Provision for decommissioning of Assets#
Total
2,118
2,118
1,066
1,066
898
898
#
The movement is towards (i) creation of abandonment provision for Panna Mukta, CBM and utilisation for Tapti facilities, (ii) changes in the exchange rates and (iii)
Unwinding of discount.
Provision for Decommissioning of Assets is for Panna Mukta, Tapti, KGD6 and CBM Block. There exist uncertainty (i) in the amount
particularly with respect to KGD6 & CBM block as the abandonment policy is still to be notified by the Government and (ii) the timing of
abandonment of well and related facilities would depend upon the ultimate life of the field and expected utilization of assets by other
fields.
17. DEFERRED TAX LIABILITIES (NET)
The movement on the deferred tax account is as follows:
At the start of the year
Charge/(credit) to Statement of Profit and Loss (Refer Note 11)
At the end of year
Component of Deferred tax liabilities / (asset)
Deferred tax liabilities / (asset) in relation to:
Property, plant and equipment
Financial assets
Loan and advances
Provisions
Total
As at
31st March, 2017
23,747
1,019
24,766
As at
31st March, 2016
22,916
831
23,747
(` in crore)
As at
1st April, 2015
22,916
As at
31st March, 2016
Charge/(credit)
to profit or loss
(` in crore)
As at
31st March, 2017
23,859
326
(10)
(428)
23,747
1,229
158
(11)
(357)
1,019
25,088
484
(21)
(785)
24,766
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
318
18. BORROWINGS – CURRENT
Secured - At Amortised Cost
Working Capital Loans
From Banks
Foreign Currency Loans
Rupee Loans
From Others
Rupee Loans
Unsecured - At Amortised Cost
Other Loans and Advances
From Banks
Foreign Currency Loans
Total
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
5,837
3,621
9,458
-
13,122
13,122
22,580
-
1,672
1,672
1,649
11,169
12,818
14,490
655
17
672
-
12,244
12,244
12,916
18.1 Working Capital Loans from Banks of ` 9,458 crore (Previous Year ` 1,672 crore) are secured by hypothecation of present and
future stock of raw materials, work-in-progress, 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 Segment.
18.2 Working Capital Loans from Others of ` Nil (Previous Year ` 1,649 crore) are secured by way of lien on Government Securities.
19.
TRADE PAYABLES
Micro, Small and Medium Enterprises
Others
Total
As at
31st March, 2017
242
67,919
68,161
As at
31st March, 2016
223
54,298
54,521
(` in crore)
As at
1st April, 2015
131
54,338
54,469
19.1 There are no amounts outstanding to Micro, Small and Medium Enterprises as at March 31, 2017 and no amount were over due during
the year for which disclosure requirements under Micro, Small and Medium Enterprises Development Act, 2006 are applicable.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
319
20. OTHER FINANCIAL LIABILITIES
Current maturities of Long Term Debt
Current maturities of Finance Lease Obligations
(Refer Note 15)
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, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
6,143
-
6,143
-
370
241
1
1
37,164
43,920
14,756
28
14,784
-
300
223
1
1
31,195
46,504
8,417
27
8,444
3
254
199
1
1
8,088
16,990
#
*
These figures do not include any amounts due and outstanding, to be credited to Investor Education and Protection Fund except ` 20 crore (Previous Year ` 17
crore) which is held in abeyance due to legal cases pending.
Includes Security Deposit, Creditors for Capital Expenditure and financial liability at fair value.
21. OTHER CURRENT LIABILITIES
Other Payables^
Total
^
Includes statutory dues and advances from customers.
22. PROVISIONS - CURRENT
Provisions for Employee Benefits (Refer Note 26.1)**
Other Provisions ##
Total
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
16,897
16,897
8,348
8,348
2,251
2,251
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
177
1,091
1,268
252
918
1,170
237
1,058
1,295
**
##
The provision for employee benefit includes annual leave and vested long service leave entitlement accrued and compensation claims made by employees.
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, 2016
of ` 527 crore as per the estimated pattern of dispatches. During the year, ` 527 crore was utilised for clearance of goods. Provision recognised under this class for
the year is ` 596 crore which is outstanding as on 31st March, 2017. 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 ` 314 crore as at 31st March, 2016. During the year, further provision of ` 608 crore was made
and sum of ` 503 crore were reversed on fulfilment of export obligation. Closing balance on this account as at 31st March, 2017 is ` 419 crore.
23. SALE OF PRODUCTS
Particulars of Sale of Products
Petroleum Products
Petrochemical Products
Oil & Gas
Others
Total
2016-17
1,79,438
82,095
2,787
589
2,64,909
(` in crore)
2015-16
1,69,305
76,903
4,259
633
2,51,100
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 320
24. OTHER INCOME
Interest
Bank deposits
Debt instruments
Other financial assets carried at amortised cost
Others (` 14,19,866)
Dividend Income
Other Non Operating Income
Gain on Financial Assets
Realised Gain
Unrealised Gain
Total
2016-17
2015-16
(` in crore)
356
2,933
246
-
2,948
1,168
3,535
271
787
4,116
8,709
706
3,230
232
1
1,733
1,055
4,169
691
173
2,788
7,821
Above income includes assets measured at amortised cost ` 604 crore (Previous Year ` 1,008 crore), Fair Value through Profit and Loss ` 4,991 crore (Previous Year ` 3,964
crore) and Fair Value through Other Comprehensive Income ` 3,114 crore (Previous Year ` 2,849 crore).
24.1 Other Comprehensive Income
Government Securities
Debentures or Bonds
Debt Income Fund
Cash Flow Hedge
2016-17
2015-16
(` in crore)
(30)
220
826
1,736
2,752
41
167
859
-
1,067
2016-17
(` in crore)
2015-16
25. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE
Inventories (at close)
Finished Goods / Stock-in-Trade
Work-in-Progress
Inventories (at commencement)
Finished Goods / Stock-in-Trade
Work-in-Progress
Less: Capitalised during the year
Total
26. EMPLOYEE BENEFITS EXPENSE
Salaries and Wages
Contribution to Provident Fund and Other Funds
Staff Welfare Expenses
Total
9,263
4,837
14,100
7,663
2,871
10,534
1,273
9,261
(4,839)
2016-17
3,889
229
316
4,434
7,663
2,871
10,534
9,496
5,209
14,705
-
14,705
4,171
(` in crore)
2015-16
3,736
222
304
4,262
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 321
26.1 As per Indian Accounting Standard 19 “Employee benefits”, the disclosures as defined 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
2016-17
105
12
40
(` in crore)
2015-16
95
12
38
The Company’s Provident Fund is exempted under Section 17 of Employees’ Provident Fund and Miscellaneous Provisions
Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate
declared by the trust vis-a-vis statutory rate.
Defined Benefit Plan
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
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)
2016-17
657
34
53
(34)
(46)
664
Gratuity (Funded)
2016-17
657
54
-
-
(46)
665
54
(` in crore)
2015-16
615
33
49
10
(50)
657
(` in crore)
2015-16
615
58
-
34
(50)
657
58
(` in crore)
Fair value of Plan Assets
Present value of Obligation
Amount recognised in Balance Sheet (Surplus/(Deficit)
Gratuity (Funded)
As at 31st March 2017 As at 31st March 2016
657
657
-
665
664
1
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
322
IV)
Expenses recognised during the year
In Income Statement
Current Service Cost
Interest Cost
Return on Plan Assets
Net Cost
In Other Comprehensive Income
Actuarial (Gain) / Loss
Return On Plan Assets
Net (Income)/ Expense For the period Recognised in OCI
(` in crore)
Gratuity (Funded)
2016-17
2015-16
34
53
(53)
34
(34)
(1)
(35)
33
49
(49)
33
10
(9)
1
V)
Investment Details :
GOI Securities
Public Securities
State Government Securities
Insurance Policies
Others (including bank balances)
Total
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)
As at 31st March, 2017
As at 31st March, 2016
` in crore
16
4
-
641
4
665
% Invested
2.41
0.60
-
96.39
0.60
100.00
` in crore
20
10
1
590
36
657
% Invested
3.04
1.52
0.15
89.81
5.48
100
Gratuity (Funded)
2016-17
2006-08
(Ultimate)
8%
8%
6%
2015-16
2006-08
(Ultimate)
8%
8%
6%
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information
is certified by the actuary.
The Expected Rate of Return on Plan Assets is determined considering several applicable factors, mainly the composition
of Plan Assets held, assessed risks, historical results of return on Plan Assets and the Company’s policy for Plan Assets
Management.
VII) The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2016-17.
VIII) Sensitivity Analysis
Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade ,expected
salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably
possible changes of the assumptions occurring at end of the reporting period , while holding all other assumptions
constant. The result of Sensitivity analysis is given below:
Particulars
Change in discounting rate (delta effect of +/- 0.5%)
Change in rate of salary increase (delta effect of +/- 0.5%)
Change in rate of employee turnover (delta effect of +/- 0.5%)
(` in crore)
As at 31st March, 2017
As at 31st March, 2016
Decrease
19
20
2
Increase
21
21
2
Decrease
19
19
3
Increase
20
20
3
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
323
These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.
Investment risk The present value of the defined benefit plan liability is calculated using a discount rate which is
Interest risk
Longevity risk
Salary risk
determined by reference to market yields at the end of the reporting period on government bonds.
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset
by an increase in the return on the plan debt investments.
The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan’s liability.
The present value of the defined plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.
26.2 The Company had announced Voluntary Separation Scheme (VSS) for the employees of Allahabad & Nagpur Manufacturing
Divisions in the previous year. A sum of ` 156 crore had been paid during the previous year and debited to the Statement of
Profit and Loss under the head “Employee Benefits Expense”.
26.3 Share based payments
a)
Scheme details
Company has an Employee Stock Option Scheme under which the maximum quantum of options was granted at ` 642
(face value ` 10 each) with options to be vested from time to time on the basis of performance and other eligibility criteria.
Details of Employee Stock Option granted upto 31st March, 2015 but not vested as on 1st April, 2015 :
Financial Year
(Year of Grant)
2006-07
2008-09
2010-11
2011-12
2013-14
2014-15
Total
Number
5,51,760
13,200
5,760
16,855
60,107
45,419
6,93,101
Financial Year of
Vesting
2015-16
2015-16 & 2016-17
2015-16
2015-16
2015-16 to 2018-19
2015-16 to 2019-20
Range of
Exercise Price (`)
642
644.5
929
765 - 972
860 - 880
843.2 - 960.7
Range of Fair value
at Grant Date (`)
309.7
312.4 - 329.9
454.3
388.4 - 482
281.3 - 452.9
253.8 - 473
Details of Employee Stock Option granted from 1st April, 2015 to 31st March, 2017 but not vested as on 31st March, 2017:
Financial Year
(Year of Grant)
2015-16
2016-17
Total
Number
14,967
74,454
89,421
Financial Year of
Vesting
2016-17 to 2019-20
2017-18 to 2020-21
Range of
Exercise Price (`)
887.4
1096
Range of Fair value
at Grant Date (`)
254.5 - 346.4
299.5 - 408.9
Exercise period will expire not later than five years from the date of vesting of options or such other period as may be decided by the Human
Resources, Nomination and Remuneration Committee.
b)
Compensation expenses arising on account of the share based payments
Expenses arising from equity – settled share-based payment transactions
Year ended
31st March, 2017
1.00
(` in crore)
Year ended
31st March, 2016
2.26
c)
Fair Value on the grant date
The fair value at grant date is determined using Black Scholes Model which takes into account the exercise price, the
term of the option, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of the option.
The model inputs for options granted during the year ended March 31, 2017 included;
a.
b.
c.
d.
e.
f.
g.
Weighted average exercise price ` 1,096 (March 31, 2016 ` 887)
Grant date: 05.10.2016 & 10.10.2016 (March 31, 2016: 10.10.2015)
Vesting year: 2017-18 to 2020-21 (March 31, 2016: 2016-17 to 2019-20)
Share price at grant date: ` 1,089 at 05.10.2016 & 1,096 at 10.10.2016)
Expected price volatility of Company’s share: 25.1 % to 26.5%
Expected dividend yield: 1.07 %
Risk free interest rate: 7 %
The expected price volatility is based on the historic volatility (based on remaining life of the options).
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
324
d) Movement in share option during the year:
Particulars
Balance at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Expired / Lapsed during the year
Balance at the end of the year
5,66,253
74,454
-
(81,815)
(14,210)
5,44,682
As of 31st March, 2017
Number of
share options
As of 31st March, 2016
Number of
share options
Weighted
average
exercise price
697.61
1,096.00
-
642.03
758.55
758.82
Weighted
average
exercise price
686.74
887.00
-
642.03
676.36
697.61
6,93,101
14,967
-
(48,945)
(92,870)
5,66,253
Weighted average remaining contractual life of the share option outstanding at the end of year is 247 days (Previous year 580 days).
27. FINANCE COSTS
Interest Expenses*
Other Borrowing Costs
Applicable loss on foreign currency transactions and translation
Total
*
Interest Expenses are net of Interest Capitalised of ` 2,852 crore (Previous Year ` 2,302 crore) (Refer Note 1.5)
28. 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
Establishment Expenses
Professional Fees
General Expenses
Rent
Insurance
Rates & Taxes
Other Repairs
Travelling Expenses
Payment to Auditors
Loss on Sale /Discard of Property, Plant & Equipments
Charity and Donations
Less: Transferred to Project Development Expenditure
Total
2016-17
2,032
-
691
2,723
2016-17
5,035
10,150
1,638
84
1,064
40
234
10
18,255
5,552
1,428
1,456
8,436
1,720
925
100
862
206
310
164
23
69
654
5,033
1,961
29,763
(` in crore)
2015-16
1,473
10
1,079
2,562
(` in crore)
2015-16
4,765
9,809
1,224
58
1,084
1
448
10
17,399
5,871
1,415
975
8,261
1,307
1,618
107
894
144
245
162
25
37
676
5,215
2,507
28,368
#
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.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
28.1 Payment to Auditors as :
Particulars
(a)
(b)
(c)
Total
Auditor:
Statutory Audit Fees
Tax Audit Fees
Certification and Consultation Fees
Cost Audit Fees
325
2016-17
(` in crore)
2015-16
10
1
11
1
23
10
1
13
1
25
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.
28.2 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 ` 620 crore (Previous Year ` 558 crore).
(b)
Expenditure related to Corporate Social Responsibility is ` 659 crore (Previous Year ` 652 crore).
Details of Amount spent towards CSR given below:
Particulars
Rural Transformation
Healthcare
Education
Sports For Development
Disaster Relief
Urban Renewal
Arts and Culture
Total
2016-17
132
267
221
24
11
3
1
659
(` in crore)
2015-16
99
315
219
9
10
0
0
652
(c)
(d)
Out of note (b) above, ` 557 crore (Previous Year ` 578 crore) is spent through Reliance Foundation and ` 22 crore
(Previous Year Nil) is spent through Reliance Foundation Youth Sports, which are related parties.
Out of note (b) above, ` 5 crore (Previous Year ` 7 crore) is towards construction / acquisition of an asset that will be
owned by the Company.
29. EARNINGS PER SHARE (EPS)
i)
ii)
Net Profit after Tax as per Statement of Profit and Loss attributable to Equity
Shareholders (` in crore)
Weighted Average number of Equity Shares used as denominator for calculating
Basic EPS
iii) Weighted Average Potential Equity Shares
iv)
Total Weighted Average number of Equity Shares used as denominator for
calculating Diluted EPS
Basic Earnings per Share (`)
Diluted Earnings per Share (`)
Face Value per Equity Share (`)
v)
vi)
vii)
2016-17
2015-16
31,425
27,384
3,24,31,68,538
3,23,83,16,609
55,93,076
3,24,87,61,614
65,22,434
3,24,48,39,043
96.90
96.73
10
84.56
84.39
10
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
326
30. RELATED PARTIES DISCLOSURES
(i)
As per Ind AS 24, the disclosures of transactions with the related parties are given below:
List of related parties where control exists and also related parties with whom transactions have taken place and relationships:
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
35
36
37
38
39
40
41
Name of the Related Party
Relationship
Adventure Marketing Private Limited #
AETN18 Media Private Limited #
Affinity Names Inc.
Aurora Algae Pty Ltd
Aurora Algae RGV LLC
Aurora Algea Inc.
Capital18 Fincap Private Limited #
Central Park Enterprises DMCC
Colorful Media Private Limited #
Colosceum Media Private Limited #
Cluster Commercials Private Limited ^
Devashree Commercials Private Limited ^
Dignity Mercantile 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
Gapco Kenya Limited
Gapco Tanzania Limited
Gapco Uganda Limited
Gapoil (Zanzibar) Limited
GenNext Holding Investments LLC ** ^
Girisha Commercials Private Limited ^
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 #
Network18 Holdings Limited #
NW18 HSN Holdings Plc # (Formerly known as Network18 HSN Plc.)
Network18 Media & Investments Limited #
Subsidiary
#
**
^
Control by Independent Media Trust of which RIL is the sole beneficiary
Formerly known as Reliance Marcellus Holding LLC
The above entities includes related parties where the relationship existed for the part of the year.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
327
Name of the Related Party
Relationship
Panorama Television Private Limited #
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
Reliance Chemicals Limited
Reliance Clothing India Private Limited
Reliance Commercial Dealers Limited ^
Reliance Commercial Land & Infrastructure Limited
Reliance Commercial Trading Private 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 ^
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
Reliance Jio Digital Services Private Limited
Reliance Jio Global Resources LLC
Reliance Jio Infocomm Limited
Reliance Jio Infocomm Pte. Limited
Subsidiary
Sr.
No.
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
#
**
^
Control by Independent Media Trust of which RIL is the sole beneficiary
Formerly known as Reliance Marcellus Holding LLC
The above entities includes related parties where the relationship existed for the part of the year.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 328
Sr.
No.
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
Name of the Related Party
Relationship
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
Reliance LNG 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
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 SMSL Limited (formerly known as Strategic Manpower Solutions 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
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 #
Subsidiary
@
**
#
^
Control by Petroleum Trust of which RIL is the sole beneficiary
Formerly known as Office Depot Reliance Supply Solution Private Limited
Control by Independent Media Trust of which RIL is the sole beneficiary
The above entities includes related parties where the relationship existed for the part of the year.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 329
Relationship
Subsidiary
Company / Subsidiary is a
beneficiary
Associates/Joint Ventures
Key Managerial Personnel
(KMP)
Relative of KMP
Enterprises over which Key
Managerial Personnel are able
to exercise significant influence
Post Employment
Benefits Plans
Petroleum Trust
Name of the Related Party
RVT Media Private Limited #
Setpro18 Distribution 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 #
Sr.
No.
126
127
128
129
130
131
132
133 Watermark Infratech Private Limited #
134 Wave Land Developers Limited
135 Web18 Holdings Limited #
136 Web18 Software Services Limited #
Independent Media Trust
137
138 Network18 Media Trust ^
139
140 Gujarat Chemical Port Terminal Company Limited
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157 Dhirubhai Ambani Foundation
158 Hirachand Govardhandas Ambani Public Charitable Trust
159 HNH Trust and HNH Research Society
160
161
162
163
164
165
166
167
168
169
Indian Vaccines Corporation Limited
Jio Payments Bank Limited ^
Reliance Europe Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Industrial Infrastructure 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
Shri Alok Agarwal
Shri Srikanth Venkatachari
Shri K. Sethuraman
Smt. Nita M. Ambani
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Reliance Foundations Youth Sports ^
I P C L Employees Provident Fund Trust
Reliance Industries Limited Vadodara Unit Employees Superannuation Fund
RIL Vadodara Unit Employees Gratuity Fund
Reliance Employees Provident Fund Bombay
Reliance Industries Ltd Staff Superannuation Scheme
Reliance Industries Ltd Employees Gratuity Fund
I P C L Employees Gratuity Fund - Baulpur Unit
#
^
Control by Independent Media Trust of which RIL is the sole beneficiary
The above entities includes related parties where the relationship existed for the part of the year.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
330
(ii)
Transactions during the year with related parties :
Sr.
No.
Nature of Transactions
(Excluding Reimbursements)
Subsidiaries/
Beneficiary
Associates/
Joint Venture
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Purchase of Tangible and
Intangible Assets
Purchase / Subscription of
Investments
Sale / Redemption of
Investments
Net Loans and Advances,
Deposits given/ (Returned)
Revenue from Operations
Other Income
Purchases / Material
Consumed
Electric Power, Fuel and Water
Hire Charges
Employee Benefit Expense
Payment to Key Managerial
Personnel/Relative
Sales and Distribution
Expenses
Rent
Professional Fees
General Expenses
Donations
Finance Costs
Balances as at 31st March 2017
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
Figures in italic represents Previous Year’s amounts.
*
Includes reimbursements
1,940
2,302
67,092
38,085
26,462
422
(1,955)
(11,913)
14,954
24,925
1,586
1,721
3,044
2,201
-
-
-
-
272
210
-
-
27
178
-
-
1,391
1,244
528
25
-
-
-
10
1,21,355
81,421
1,277
2,210
13,006
15,099
175
-
659
456
-
94
41,715
35,897
1,163
192
231
237
92
-
-
-
6
43
347
301
231
17
730
631
2,484
1,719
637
585
-
-
-
-
2,619
2,609
14
8
35
39
7
430
-
-
-
-
3,502
2,085
49
35
-
3
618
784
489
315
-
-
1,532
1,837
137
135
Key Managerial
Personnel/
Relative
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
85
79
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Others
(` in crore)
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
337
351
-
-
-
-
-
-
-
-
-
-
604
603
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,171
2,539
67,184
38,085
26,462
422
(1,949)
(11,870)
15,301
25,226
1,817
1,738
3,774
2,832
2,484
1,719
637
585
609
561
85
79
2,646
2,787
14
8
1,426
1,283
535
455
604
603
-
10
1,24,857
83,506
1,326
2,245
13,006
15,102
793
784
1,148
771
-
94
43,247
37,734
1,300
327
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
(iii) Disclosure in Respect of Major Related Party Transactions during the year :
331
Particulars
1
2
3
4
Purchase of Tangible and Intangible Assets
Recron (Malaysia) Sdn. Bhd.
Reliance Corporate IT Park Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Petro Marketing Limited
Reliance Retail Limited
Reliance Sibur Elastomers Private Limited
Gujarat Chemical Port Terminal Company 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 Eminent Trading & Commercial 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 Strategic Investments Limited
Reliance Universal Traders Private Limited
Reliance Ventures Limited
Independent Media Trust
Jio Payments Bank Limited
Sale / Redemption of Investments
Reliance Energy Generation and Distribution Limited
Reliance Ethane Holding Pte. Limited
Reliance Gas Pipelines Limited
Reliance Global Business B.V.
Reliance Industrial Investments and Holdings Limited
Reliance Industries (Middle East) DMCC
Reliance Progressive Traders Private Limited
Reliance Prolific Traders Private Limited
Reliance Universal Traders Private Limited
Net Loans and Advances, Deposits Given / (Returned)
Reliance Commercial Dealers Limited
Reliance Corporate IT Park 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 Messaging Services Private Limited
Reliance Prolific Traders Private Limited
Reliance Strategic Investments Limited
Reliance Ventures Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Europe Limited
Relationship
2016-17
(` in crore)
2015-16
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
Company/
Subsidiary is a
beneficiary
Joint Venture
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
52
1,753
96
6
33
-
4
-
36
191
4
21
10,499
239
591
20,497
498
33,660
23
11
3
58
133
160
171
524
-
92
3,263
404
368
-
19,271
1,566
71
1,416
103
-
(2,698)
-
3
-
1,362
(482)
34
1,296
(1,465)
(5)
9
(3)
106
2,044
75
6
27
43
-
3
166
68
7
-
3,263
399
303
14,091
2,217
15,000
74
60
5
122
243
-
24
-
2,277
-
-
-
-
422
-
-
-
-
-
20
713
(3,263)
-
(33)
(10,573)
482
-
-
903
(142)
22
-
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
332
Particulars
5
Revenue from Operations
Gapco Kenya Limited
Recron (Malaysia) Sdn. Bhd.
Reliance Commercial Dealers Limited ^
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.
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
Other Income
Gapco Kenya Limited
Gapco Tanzania Limited
Gapco Uganda Limited
Recron (Malaysia) Sdn. Bhd.
Reliance Corporate IT Park Limited
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 Jio Messaging Services Private 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 Gas Transportation Infrastructure Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private Limited
Purchases / Material Consumed
Recron (Malaysia) Sdn Bdh
Reliance Commercial Land & Infrastructure Limited
Reliance Industries (Middle East) DMCC
Reliance Petro Marketing Limited
Gujarat Chemical Port Terminal Company 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
6
7
8
^
Relationship
2016-17
(` in crore)
2015-16
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate
Associate
1,522
404
13
2
5
2,748
828
528
6,399
13
229
2,276
1
31
2
15
285
2
3
1
7
327
-
13
213
663
1
47
1
19
267
16
6
6
17
204
1
3
1
20
3,023
-
90
13
623
4
2,484
9,373
468
13
1
3
3,915
924
522
2,232
188
2
7,297
-
47
-
5
236
2
3
1
7
353
2
11
138
816
-
37
-
6
287
54
4
-
13
-
1
3
-
-
2,200
1
-
19
611
-
1,719
The above entities includes related parties where the relationship existed for the part of the year and the amounts reported is for the period during which
the related party relationship existed during the period.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
Particulars
9
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
I P C L Employees Provident Fund Trust
Reliance Industries Limited Vadodara Unit Employees Superannuation
Fund
RIL Vadodara Unit Employees Gratuity Fund
Reliance Employees Provident Fund Bombay
Reliance Industries Ltd Staff Superannuation Scheme
Reliance Industries Ltd Employees Gratuity Fund
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
Shri Alok Agarwal
Shri Srikanth Venkatachari
Shri K. Sethuraman
Smt Nita M. Ambani
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
Indiawin Sports Private Limited
Reliance Corporate IT Park Limited
Reliance Industries (Middle East) DMCC
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
General Expenses
Big Tree Entertainment Private Limited
Indiawin Sports Private Limited
Reliance Commercial Dealers Limited ^
Reliance Retail Limited
Reliance Ports and Terminals Limited
Donations
Hirachand Govardhandas Ambani Public Charitable Trust
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Reliance Foundations Youth Sports
Finance Costs
Reliance Corporate IT Park Limited
10
11
12
13
14
15
16
17
333
Relationship
2016-17
(` in crore)
2015-16
Associate
Associate
Associate
Associate
Subsidiary
Subsidiary
Other*
Other*
Other*
Other*
Other*
Other*
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
Relative of KMP
Subsidiary
Subsidiary
Associate
Associate
Associate
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Others
Others
Others
Others
Subsidiary
2
203
45
387
19
253
103
2
-
222
10
-
15
17
17
7
3
12
11
2
1
26
1
52
2,567
14
26
1,364
1
30
5
-
7
485
36
5
2
19
561
22
-
117
214
34
220
8
202
98
2
3
207
10
31
15
14
14
7
3
12
11
2
1
178
-
33
2,576
8
-
1,244
-
33
6
2
-
418
23
12
4
15
584
-
10
^
*
The above entities includes related parties where the relationship existed for the part of the year and the amounts reported is for the period during which
the related party relationship existed during the period.
Also includes Employee Contribution
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
334
(iv) Balances as at 31st March, 2017
Particulars
Relationship
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
1
2
3
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 Ethane Holding Pte. Limited
Reliance Gas Pipelines Limited
Reliance Holding USA, Inc.
Reliance Industrial Investments and Holdings
Limited
Reliance Industries (Middle East) DMCC
Reliance Jio Messaging Services Private Limited
Reliance Prolific Traders Private Limited
Reliance Strategic Investments Limited
Reliance Ventures Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Europe Limited
Deposits
Reliance Commercial Dealers Limited ^
Gujarat Chemical Port Terminal Company Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private Limited
Financial Gurantees
Reliance Global Energy Services (Singapore) Pte. Ltd.
Reliance Global Energy Services Limited
Reliance Holding USA, Inc.
Reliance Industries (Middle East) DMCC
Reliance Jio Infocomm Limited
Reliance Sibur Elastomers Private Limited
RIL USA, Inc.
Reliance Europe Limited
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Subsidiary
Associate
Associate
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
-
-
-
-
-
1,135
-
3
-
-
8,611
-
35
1,296
1,826
100
-
-
175
147
353
118
195
5
19,455
1,583
19,719
422
336
1,532
2
-
-
-
-
3,823
-
-
-
35
7,321
482
-
-
3,283
153
-
3
175
138
353
118
-
6
19877
895
15070
-
49
1837
2
3
1
8
1
2,976
3,263
-
33
-
17,890
-
-
-
2,263
302
6
3
155
110
353
118
-
6
18,750
1,951
12,770
-
208
1,733
All related party contracts / arrangements have been entered on arms' length basis.
^
The above entities includes related parties where the relationship existed for the part of the year and the amounts reported is for the period during which
the related party relationship existed during the period.
30.1 Compensation of Key management personnel
The remuneration of director and other member of key management personnel during the year was as follows:
Short-term benefits
Post employment benefits
Other long term benefits
Share based payments
Termination benefits
i
ii
iii
iv
v
Total
2016-17
82
2
-
-
-
84
(` in crore)
2015-16
76
2
-
-
-
78
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
335
31.1 Disclosure of the Company’s Interest in Oil and Gas Joint Arrangments (Joint Operation):
Sr.
No.
Name of the Fields in the
Joint Arrangments
Company’s %
Interest
2016-17 2015-16
Partners and their Participating Interest (PI)
Country
1
2
3
4
5
6
7
8
9
Panna Mukta
30%
30% BG Exploration & Production India Limited - 30% ;
Oil and Natural Gas Corporation Limited - 40%
Mid and South Tapti
30%
30% BG Exploration & Production India Limited - 30% ;
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
CB-ONN-2003/1
CY-DWN-2001/2
Block M-17
90%
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 Limited
India
India
India
Myanmar
(UNRD) - 4%
Block M-18
96%
96% United National Resources Development Services Company Limited
Myanmar
(UNRD) - 4%
*
Niko (NELPIO) Limited has withdrawn its entire 10% PI from the Joint Operating Agreement (JOA), however the assignment to RIL & BPEAL is pending
subject to Government approval.
31.2 Quantities of Company’s Interest (on gross basis) in Proved Reserves and Proved Developed Reserves:
Particulars
Oil:
Beginning of the year
Revision of estimates
Production
Closing balance of the year
Particulars
Gas:
Beginning of the year
Revision of estimates
Production
Closing balance of the year
Proved Reserves in India
(Million MT)
2016-17
2015-16
Proved Developed Reserves
in India (Million MT)
2016-17
2015-16
4.32
(0.26)
(0.35)
3.71
1.96
2.78
(0.42)
4.32
1.05
(0.12)
(0.35)
0.58
1.47
-
(0.42)
1.05
Proved Reserves in India
(Million M3#)
Proved Developed Reserves
in India (Million M3#)
2016-17
2015-16
2016-17
2015-16
71,731
(8,500)
(2,280)
60,951
65,741
9,008
(3,018)
71,731
14,582
1,995
(2,280)
14,297
18,812
(1,212)
(3,018)
14,582
#
cubic meter (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl
The reserve estimates for producing fields are revised based on the performance of producing fields and with respect to discovered
fields, the revision are based on the revised geological and reservoir simulation studies.
31.3 Government of India (GOI), by its letters dated 2nd May, 2012, 14th November, 2013, 10th July, 2014 and 3rd June 2016 has
communicated that it proposes to disallow certain costs which the Production Sharing Contract (PSC), relating to Block KG-DWN-98/3
entitles the Company to recover. Based on legal advice received, the Company continues to maintain that a Contractor is entitled to
recover all of its costs under the terms of the PSC and there are no provisions that entitle the Government to disallow the recovery of any
Contract Cost as defined in the PSC. The Company has already referred the issue to arbitration and already communicated the same to
GOI for resolution of disputes. Pending decision of the arbitration, the demand from the GOI of $ 148 million (for ` 961 crore) being the
Company's Share (total demand $ 247 million) towards additional Profit Petroleum has been considered as contingent liability.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
336
31.4 (a)
(b)
(c)
The Government has made a claim of about $ 1.55 billion against the KGD6 Contractor parties in respect of gas said to have
migrated from neighbouring blocks. In carrying out petroleum operations, the Contractor has worked within the boundaries
of the block awarded to it and has complied with all applicable regulations and provisions of the Production Sharing Contract
(“PSC”). The Company has already invoked the dispute resolution mechanism in the PSC and issued a Notice of Arbitration
to the Government on 11th November, 2016. The Company remains convinced of being able to fully justify and vindicate its
position that the Government’s claim is not sustainable.
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 31.3 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 customers to Gas Pool Account is ` 295 crore (net) as at
31st March 2017 and is disclosed under Other Non-Current Assets. Revenue has been recognized at the GoI notified prices in
respect of gas quantities sold.
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 (ONGC) 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 Tribunal
by majority issued a final partial award (“FPA”), and separately, two dissenting opinions in the matter on 12 October 2016.
Claimants have challenged certain parts of the FPA before the English Court and the English court has initiated steps to effect
service of the Challenge proceedings upon the Government.
(d)
NTPC had filed a suit for specific performance of a contract for supply of natural gas by RIL before the Hon’ble Bombay High
Court. 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. The matter is presently sub judice and RIL is of the view that
NTPC’s claim lacks merit and no binding contract for supply of gas was executed between NTPC and RIL.”
(e)
Considering the complexity of above issues, the Company is of the view that any attempt for quantification of possible
exposure to the Company will have an effect of prejudicing Company’s legal position in the ongoing arbitration/litigations.
31.5 Exploration for and Evaluation of Oil and Gas Resources
The following financial information represents the amounts included in Intangible Assets under Development relating to activity
associated with the exploration for and evaluation of oil and gas resources.
Particulars
Exploration & evaluation cost
Exploration Expenditure written off
Other Exploration Cost
Exploration Cost for the Year
Impairment loss
Intangible Assets -Exploration & Appraisal Expenditure
Intangible Assets-Other than E&E
CWIP-Inventory & Advance
Current Liabilities
Net Assets
Capital expenditure on accrual basis
Net Cash Used in Operating activity
Net Cash Used in investing activity
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
46
23
69
46
41
8
(24)
71
81
23
58
-
379
379
-
59
2
(1)
60
14
379
15
-
-
-
-
45
2
(2)
45
-
-
-
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
32. CONTINGENT LIABILITIES AND COMMITMENTS
(I)
Contingent Liabilities
(A)
Claims against the Company / disputed liabilities not
acknowledged as debts*
(a)
(b)
In respect of Joint Ventures
In respect of Others
(B) Guarantees
(i)
(ii)
(iii)
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
(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)
(b)
(II) Commitments
In respect of Joint Ventures
In respect of Others
(A)
Estimated amount of contracts remaining to be executed on capital
account and not provided for:
(a)
In respect of Joint Ventures
(b)
In respect of Others
(B) Uncalled liability on shares and other investments partly paid
(C) Other Commitments
(a)
Sales Tax deferral liability assigned (` Nil [Previous year ` 29,847])
337
2016-17
(` in crore)
2015-16
1,142
2,460
-
43,247
-
1,300
20
10,826
-
383
901
2,150
11,340
-
847
2,639
-
37,734
-
327
20
30,231
-
734
1,284
6,089
-
-
*
The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
(III)
(IV)
The Income -Tax Assessments of the Company have been completed up to Assessment Year 2013-14. The total outstanding demand
upto Assessment Year 2013-14 is ` 2,257 crore as on date (i.e 31st March 2017). 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.
The Securities and Exchange Board of India has passed an Order under section 11B of the Securities and Exchange Board of India Act,
1992 on 24th March 2017 in the matter concerning trading in RPL shares by the Company in the year 2007, directing (i) disgorgement
of ` 447 crores along with interest calculated at 12% per annum from 29th November 2007 till date of payment and (ii) prohibiting RIL
from dealing in equity derivatives in the Futures and Options segment of the stock exchanges, directly or indirectly for a period of one
year from 24th March 2017.The Company has been legally advised that the Order is based on surmises, conjectures and untenable
reasoning. The Company is in the process of filing an appeal against the said Order before the Securities Appellate Tribunal.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
338
33. CAPITAL MANAGEMENT
The Company adheres to a robust Capital Management framework which is underpinned by the following guiding principles;
a)
b)
c)
d)
Maintain financial strength to ensure AAA ratings domestically and investment grade ratings internationally.
Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity risk while meeting investment
requirements.
Proactively manage group exposure in forex, interest and commodities to mitigate risk to earnings.
Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility of the Balance sheet.
This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market conditions and
interest rates environment.
The gearing ratio at end of the reporting period was as follows.
Gross Debt
Cash and Marketable Securities
Net Debt (A)
Total Equity (As per Balance Sheet) (B)
Net Gearing (A/B)
34.
FINANCIAL INSTRUMENTS
As at
31st March, 2017
1,07,446
69,337
38,109
288,313
0.13
As at
31st March, 2016
107104
79,507
27,597
253,998
0.11
(` in crore)
As at
1st April, 2015
97,409
81,167
16,242
232,744
0.07
Valuation
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:
a)
b)
c)
d)
e)
The fair value of investment in quoted Equity Shares, Bonds, Government Securities, Treasury Bills and Mutual Funds is measured at
quoted price or NAV.
The fair value of Interest Rate Swaps is calculated as the present value of the estimated future cash flows based on observable yield
curves.
The fair value of Forward Foreign Exchange contracts and Currency Swaps is determined using forward exchange rates and yield
curves at the balance sheet date.
The fair value of Foreign Currency Option contracts is determined using the Black Scholes valuation model.
Commodity derivative contracts are valued using readily available information in markets and quotations from exchange, brokers
and price index developers
f )
The fair value of the remaining financial instruments is determined using discounted cash flow analysis.
g)
All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 339
(` in crore)
As at 31st March, 2017
Level of
input used in
Carrying
Amount
As at 31st March, 2016
Level of
input used in
Carrying
Amount
As at 1st April, 2015
Level of
input used in
Carrying
Amount
Level 1
Level 2
Level 1
Level 2
Level 1
Level 2
3,324
5,472
1,754
15,318
2,792
36,910
211
366
3
-
-
-
-
-
-
-
-
-
-
33,866
-
-
-
3,044
211
366
3
3,120
3,495
6,892
16,785
2,024
26,734
699
-
-
-
-
-
-
-
-
-
-
-
-
21,119
-
-
-
5,615
699
-
-
3,028
4,661
11,571
28,418
2,539
21,886
-
-
-
-
-
-
-
-
-
-
-
-
-
15,208
-
-
-
6,678
-
-
-
30,683
25,715
4,968
45,890
33,376
12,514
46,692
41,266
5,426
1,07,446
68,161
34,825
2,575
11
366
-
-
-
-
-
-
-
-
-
1,07,104
54,521
29,996
2,575
11
366
1,724
-
-
-
-
-
-
-
-
-
-
-
97,409
54,469
7,601
1,724
-
-
945
-
-
-
-
-
-
-
-
-
-
-
945
-
-
Fair value measurement hierarchy:
Particulars
Financial Assets
At Amortised Cost
Investments*
Trade Receivables
Cash and Bank Balances
Loans
Other Financial Assets
At FVTPL
Investments
Financial Derivatives
Commodity Derivatives
Other Financial Assets
At FVTOCI
Investments
Financial Liabilities
At Amortised Cost
Borrowings
Trade Payables
Other Financial Liabilities
At FVTPL
Financial Derivatives
Commodity Derivatives
Other Financial Liabilities
*
Excludes financial assets measured at Cost (Refer note 2.1).
The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Foreign Currency Risk
The following table shows foreign currency exposures in USD, EUR and JPY on financial instruments at the end of the reporting period. The
exposure to foreign currency for all other currencies are not material.
Foreign Currency Exposure
(` in crore)
Particulars
As at 31st March, 2017
USD
92,922
59,017
(6,281)
EUR
8,498
1,545
(55)
JPY
1,673
70
565
As at 31st March, 2016
USD
92,714
44,908
(2,321)
EUR
6,873
5,389
(2,230)
JPY
2,110
674
(196)
As at 1st April, 2015
USD
88,521
37,375
(5,596)
EUR
3,900
2,093
(2,833)
JPY
2,411
513
(166)
Loans
Trade and Other Payables
Trade and Other Receivables
Derivatives
(2,370)
- Forwards & Futures
-
- Currency Swap
-
- Options
388
Net Exposure
The net exposures have natural hedges in the form of future foreign currency earnings and earnings linked to foreign currency for which the company may follow hedge
accounting.
(23,684)
1,438
2,366
606 1,15,421
30,455
1,356
1,950
(3) 1,54,061
(47,854)
1,015
1,076
99,895
(10,140)
-
-
(108)
(9,136)
-
-
852
(3,352)
-
-
(192)
(1,702)
-
-
(2,591)
-
-
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 340
Sensitivity analysis of 1% change in exchange rate at the end of reporting period net of hedges
Foreign Currency Sensitivity
(` in crore)
Particulars
1% Depreciation in INR
Impact on Equity
Impact on P&L
Total
1% Appreciation in INR
Impact on Equity
Impact on P&L
Total
As at 31st March, 2017
USD
EUR
JPY
As at 31st March, 2016
USD
EUR
JPY
8
(309)
(301)
(8)
309
301
5
(14)
(9)
(5)
14
9
-
(6)
(6)
-
6
6
(830)
(302)
(1,132)
830
302
1,132
27
(26)
1
(27)
26
(1)
4
(4)
-
(4)
4
-
Interest Rate Risk
The exposure of the company’s borrowing and derivatives to interest rate changes at the end of the reporting period are as follows
Interest Rate Exposure
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
(` in crore)
Particulars
Loans
Long term Floating Loan
Long term Fixed Loan
Short term Loan
Total
Derivatives
Foreign Currency Interest rate swap
Rupees Interest rate swap
Currency swap
Total
55,806
29,060
22,580
1,07,446
25,987
9,995
1,015
36,997
56,672
35,942
14,490
1,07,104
39,968
16,835
1,438
58,241
55,615
28,878
12,916
97,409
45,532
23,640
1,356
70,528
(` in crore)
Impact on Interest Expenses for the year on 1% change in Interest rate
Interest rate Sensitivity
Particulars
Impact on Equity
Impact on P&L
Total Impact
As at 31st March, 2017
As at 31st March, 2016
Up Move
(148)
(116)
(264)
Down Move
148
116
264
Up Move
515
(217)
298
Down Move
(515)
217
(298)
Commodity Price Risk
Commodity price risk arises due to fluctuation in prices of crude oil, other feed stock and products. The company has a risk management
framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs.
The company’s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with
the risk management policy, the Company enters into various transactions using derivatives and uses Over the Counter (OTC) as well as
Exchange Traded Futures, Options and Swap contracts to hedge its commodity and freight exposure.
Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial
loss to the company. Credit risk arises from company’s activities in investments, dealing in derivatives and outstanding receivables from
customers.
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 341
The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Sales made
to customers on credit are generally secured through Letters of Credit, Bank Guarantees, Parent Company Guarantees, advance payments
and factoring & forfaiting without recourse to RIL.
Liquidity Risk
Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies
maintaining sufficient stock of cash and marketable securities (` 69,337 crores as on 31st March 2017; ` 79,507 crores as on 31st March
2016) and maintaining availability of standby funding through an adequate line up of committed credit facilities (` 21,831 crores as on
31st March 2017; ` 43,498 crores as on 31st March 2016). Company accesses global financial markets to meet its liquidity requirements.
It uses a range of products and a mix of currencies to ensure efficient funding from across well-diversified markets and investor pools.
Treasury monitors rolling forecasts of the company’s cash flow position and ensures that the company is able to meet its financial obligation
at all times including contingencies.
The company’s liquidity is managed centrally with operating units forecasting their cash and liquidity requirements. Treasury pools the cash
surpluses from across the different operating units and then arranges to either fund the net deficit or invest the net surplus in the market.
Particulars
Maturity Profile of Loans and Derivative Financial Liabilities as on 31 March, 2017
3-5
Years
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
Non Derivative Liabilities
Long Term Loans*
Short Term Loans
Total Borrowings
Derivative Liabilities
Forwards
Options
Currency Swap
Interest Rate Swap
Total Derivative Liabilities
2,582
20,379
22,961
1,115
33
-
-
1,148
1,350
2,201
3,551
380
64
-
1
445
2,211
-
2,211
372
62
42
175
651
33,145
-
33,145
16,484
-
16,484
-
-
42
51
93
-
-
200
49
249
*
Including ` 424 Crore as prepaid finance charges
Particulars
Maturity Profile of Loans and Derivative Financial Liabilities as on 31 March, 2016
3-5
Years
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
Non Derivative Liabilities
Long Term Loans*
Short Term Loans
Total Borrowings
Derivative Liabilities
Forwards
Options
Currency Swap
Interest Rate Swap
Total Derivative Liabilities
2,583
13,388
15,971
8,970
987
9,957
40
-
-
5
45
3
-
-
13
16
3,203
115
3,318
370
-
102
32
504
34,271
-
34,271
15,546
-
15,546
141
-
90
419
650
-
-
224
285
509
*
Including ` 363 Crore as prepaid finance charges
(` in crore)
Total
85,290
22,580
1,07,870
1,867
159
284
276
2,586
(` in crore)
Total
92,883
14,490
1,07,373
554
-
416
754
1,724
Above
5 Years
29,518
-
29,518
-
-
-
-
-
Above
5 Years
28,310
-
28,310
-
-
-
-
-
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 342
Hedge Accounting
The company’s business objective includes safe-guarding its hydrocarbon earnings against adverse price movements of crude oil and other
feedstock, refined products, freight costs as well as foreign exchange and interest rates. Reliance has adopted a structured risk management
policy to hedge all these risks within an acceptable risk limit and an approved hedge accounting framework which allows for Fair Value and
Cash Flow hedges. Hedging instruments include exchange traded futures and options, OTC swaps, forward and options as well as non-
derivative instruments to achieve this objective. The table below shows the position of hedging instruments and hedged items as of the
balance sheet date.
Disclosure of effects of hedge accounting
(` in crore)
A. Fair Value Hedge
Hedging Instrument
Type of Hedge and Risks
Foreign currency risk
Foreign currency risk component -
Borrowings
Commodity price risk
Derivative Contracts
Hedging Items
Type of Hedge and Risks
Nominal
Value
Quantity
(Kbbl)
Carrying amount
Assets Liabilities
Changes
in FV
Hedge
Maturity Date
Line Item in
Balance Sheet
34,101
-
-
32,511
1,590
18,966
2,34,585
366
11
355
Apr. 2017 to
Mar. 2018
Non Current
Liabilities-
Borrowings
Apr. 2017 to
Dec. 2020
Other Financial
Assets / Liabilities
(` in crore)
Carrying amount Changes
in FV
Assets Liabilities
Line Item in Balance Sheet
Foreign currency risk
Export Firm Commitments
Commodity price risk
Firm Commitments for purchase of feedstock and freight
Firm Commitments for sale of products
Inventories
-
1,590
1,590
Current Liabilities - Other Financial Liabilities
3
-
4,149
250
116
-
247 Other Current Assets / Liabilities
116 Other Current Liabilities
(8)
Inventories
(` in crore)
B. Cash Flow Hedge
Hedging Instrument
Type of Hedge and Risks
Foreign currency risk
Foreign currency risk Component -
Borrowings
Hedging Items
Type of Hedge and Risks
Foreign currency risk
Highly Probable Exports
Nominal
Value
Carrying amount
Assets Liabilities
Changes
in FV
Hedge
Maturity Date
Line Item in Balance
Sheet
37,221
-
35,485
1,736
Apr. 2017 to
Mar. 2018
Non Current Liabilities-
Borrowings
Nominal
Value
Changes in
FV
Hedge Reserve
Line Item in Balance Sheet
37,221
1,736
1,736 Other Equities
(` in crore)
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
343
35.
As per Ind AS 108- “Operating Segment”, segment information has been provided under the Notes to Consolidated Financial
Statements. Please refer note 23 for revenue from sale of products.
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, 2017
Sr.
No.
1
2
3
4
5
6
7
8
Particulars
Reliance Global Business B.V.
Reliance Global Energy Services (Singapore)
Reliance Global Energy Services (UK)
Reliance Holding USA, Inc.
Reliance Industries (Middle East) DMCC
Reliance Jio Infocomm Limited
Reliance Sibur Elastomers Private Limited
RIL USA, Inc.
All the above Corporate Guarantees have been given for businesses purpose.
Particulars
37. DETAILS OF RESEARCH AND DEVELOPMENT EXPENDITURE
Sr.
No.
a)
b)
Total
Capital
Revenue
As at
31st March, 2017
-
259
6
19,455
1,428
23,655
2,140
567
(` in crore)
As at
31st March, 2016
1,432
-
7
19,877
73
23,477
-
580
(` in crore)
2016-17
2015-16
593
855
1,448
631
628
1,259
38.
EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have recommended dividend of ` 11.00 per fully paid up equity share of ` 10/- each, aggregating ` 3,916 crore,
including ` 661 crore dividend distribution tax for the financial year 2016-17, which is based on relevant share capital as on March 31,
2017. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date / book closure.
39.
DETAILS OF SPECIFIED BANK NOTES (SBN) HELD AND TRANSACTED DURING THE PERIOD 08/11/2016 TO
30/12/2016 IS AS UNDER:
Closing cash in hand as on 08.11.2016
(+) Permitted receipts
(-) Permitted payments
(-) Amount deposited in Banks
Closing cash in hand as on 30.12.2016
SBNs Other denomination
notes
1,48,33,582
73,49,282
34,04,347
-
1,87,78,517
14,73,71,000
-
-
14,73,71,000
-
(in `)
Total
16,22,04,582
73,49,282
34,04,347
14,73,71,000
1,87,78,517
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
344
40. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved for issue by the board of directors on April 24, 2017.
41.
FIRST TIME IND AS ADOPTION RECONCILIATIONS
41.1 Effect of Ind AS adoption on the standalone balance sheet as at 31st March, 2016 and 1st April, 2015
As at 31st March, 2016
As at 1st April, 2015
Previous
GAAP
Effect of
transition
to Ind AS
As per Ind
AS balance
sheet
Previous
GAAP
Effect of
transition
to Ind AS
As per Ind
AS balance
sheet
(` in crore)
91,477
97,296
39,933
9,583
1,12,630
11,843
4,394
3,67,156
41,185
(302)
(25,052)
4,328
2,504
(31)
(652)
21,980
28,034
-
39,429
3,495
6,892
4,973
2,387
5,354
90,564
4,57,720
2,687
-
-
-
336
(1,049)
1,974
23,953
1,32,662
96,994
14,881
13,911
1,15,134
11,812
3,742
3,89,136
28,034
-
42,116
3,495
6,892
4,973
2,723
4,305
92,538
4,81,674
79,792
65,178
34,771
10,575
62,058
21,655
7,604
2,81,633
41,292
-
(20,847)
(156)
1,347
-
(425)
21,211
36,551
-
50,515
4,661
11,571
6,763
2,537
3,555
1,16,153
3,97,786
1,529
-
-
-
2
-
1,531
22,742
1,21,084
65,178
13,924
10,419
63,405
21,655
7,179
3,02,844
36,551
-
52,044
4,661
11,571
6,763
2,539
3,555
1,17,684
4,20,528
3,240
2,36,944
2,40,184
-
13,814
13,814
3,240
2,50,758
2,53,998
3,236
2,12,940
2,16,176
-
16,568
16,568
3,236
2,29,508
2,32,744
77,866
1,489
13,159
92,514
(36)
(423)
10,588
10,129
77,830
1,066
23,747
1,02,643
76,227
1,404
12,677
90,308
14,490
54,521
46,493
8,348
1,170
1,25,022
2,17,536
4,57,720
-
-
11
-
-
11
10,140
23,954
14,490
54,521
46,504
8,348
1,170
1,25,033
2,27,676
4,81,674
12,916
54,469
16,812
2,251
4,854
91,302
1,81,610
3,97,786
(178)
(506)
10,239
9,555
-
-
178
-
(3,559)
(3,381)
6,174
22,742
76,049
898
22,916
99,863
12,916
54,469
16,990
2,251
1,295
87,921
1,87,784
4,20,528
ASSETS
Non-current assets
Property, plant and equipment
Capital Work-in-Progress
Intangible assets
Intangible assets under development
Financial Assets
Investments
Loans
Other Non-current assets
Total Non Current Assets
Current assets
Inventories
Financial Assets
Investments
Trade receivables
Cash and cash equivalents
Loans
Other Financial Assets
Other Current Assets
Total Current assets
Total Assets
EQUITY AND LIABILITIES
Equity
Equity Share capital
Other Equity
Total equity
Liabilities
Non-current liabilities
Financial Liabilities
Borrowings
Provisions
Deferred tax liabilities (Net)
Total non-current liabilities
Current liabilities
Financial Liabilities
Borrowings
Trade payables
Other Financial Liabilities
Other Current liabilities
Provisions
Total current liabilities
Total Liabilities
Total equity and liabilities
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
41.2 Reconciliation of Profit and Other Equity between Ind AS and Previous GAAP
Nature of adjustments
Notes
Net Profit
Sr
No
1
Net Profit / Other Equity* as per Previous Indian GAAP
Change in accounting policy for Oil & Gas Activity - From Full Cost
Method (FCM) to Successful Efforts Method (SEM)
Fair valuation as deemed cost for Property, Plant and Equipment
Fair Valuation for Financial Assets
Deferred Tax
Proposed dividend including tax
Others
2
3
4
5
6
Total
Net profit before OCI / Other Equity as per Ind AS
Year ended
31st March,
2016
27,417
279
As at
31st March,
2016
2,36,944
(20,217)
-
167
(349)
-
(130)
(33)
27,384
41,292
4,110
(10,588)
-
(783)
13,814
2,50,758
I
II
III
IV
V
345
(` in crore)
Other Equity
As at
1st April,
2015
2,12,940
(20,496)
41,292
2,876
(10,239)
3,559
(424)
16,568
2,29,508
*
Including Share Application Money pending for allotment.
Notes:
I
II
III
IV
V
Change in accounting policy for Oil & Gas Activity – From Full cost method (FCM) to Successful Efforts Method (SEM):
The impact on account of change in accounting policy from FCM to SEM is recognised in the Opening Reserves on the
date of transition and consequential impact of depletion and write offs is recognized in the Statement of Profit and Loss.
Major differences impacting such change of accounting policy are in the areas of;
-
-
Expenditure on surrendered blocks, unproved wells and abandoned wells, which has been expensed under SEM.
Depletion on producing property in SEM is calculated using Proved Developed Reserve, as against Proved Reserve
in FCM.
Fair valuation as deemed cost for Property, Plant and Equipment:
The Company have considered fair value for property, viz land admeasuring over 30,000 acres, situated in India, with
impact of ` 41,292 crore in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in
the reserves.
Fair valuation for Financial Assets:
The Company has valued financial assets (other than Investment in subsidiaries, associate and joint ventures which
are accounted at cost), at fair value. Impact of fair value changes as on the date of transition, is recognised in opening
reserves and changes thereafter are recognised in Statement of Profit and Loss or Other Comprehensive Income, as the
case may be.
Deferred Tax:
The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and
loss approach in the previous GAAP) for computation of deferred taxes has resulted in charge to the Reserves, on the
date of transition, with consequential impact to the Statement of Profit and Loss for the subsequent periods.
Others:
Other adjustments primarily comprise of :
a.
Attributing time value of money to Assets Retirement Obligation: Under Ind AS, such obligation is recognised
and measured at present value. Under previous Indian GAAP it was recorded at cost. The impact for the periods
subsequent to the date of transition is reflected in the Statement of Profit and Loss.
b.
Loan processing fees / transaction cost: Under Ind AS such expenditure are considered for calculating effective
interest rate. The impact for the periods subsequent to the date of transition is reflected in the Statement of Profit
and Loss.
Standalone Financial StatementsNOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
346
41.3 Effect of Ind AS adoption on the Statement of Profit and Loss for the year ended 31st March, 2016
Previous GAAP
Year ended 31st March, 2016
Effect of transition
to Ind AS
(` in crore)
As per Ind AS
INCOME
Revenue from operations
Sale of Products
Income from Services
Other Income
Total Income
EXPENDITURE
Cost of Material Consumed
Purchase of Stock-in-Trade
Changes in Inventories of Finished Goods, Work-in-
Progress and Stock-in-Trade
Excise duty and service tax recovered
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
2,51,100
141
2,51,241
7,582
2,58,823
1,52,769
4,241
4,171
18,083
4,260
2,454
9,566
27,578
2,23,122
35,701
7,802
482
27,417
-
-
-
239
239
-
-
-
-
2
108
(976)
790
(76)
315
(1)
349
(33)
2,51,100
141
2,51,241
7,821
2,59,062
1,52,769
4,241
4,171
18,083
4,262
2,562
8,590
28,368
2,23,046
36,016
7,801
831
27,384
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
Mumbai
Date : April 24, 2017
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
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
Nita M. Ambani
Raminder Singh Gujral
- Chairman & Managing Director
Executive Directors
Directors
NOTES TO THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
CONSOLIDATED
FINANCIAL STATEMENTS
347
Independent Auditors’ Report on Consolidated Financial Statements
348 /
352 / Consolidated Balance Sheet
353 / Consolidated Statement of Profit and Loss
354 / Consolidated Statement of Changes in Equity
356 / Consolidated Cash Flow Statement
358 / Notes to the Consolidated Financial Statements
414 /
Salient Features of Financial Statements of Subsidiary / Associates /
Joint Ventures
Consolidated Financial Statements02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 348
FINANCIAL STATEMENTS
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, 2017, the Consolidated
Statement of Profit and Loss (including Other Comprehensive
Income), the Consolidated Cash Flow Statement and the
Consolidated Statement of Changes in Equity for the year then
ended, and a summary of the significant accounting policies and
other explanatory information (hereinafter referred to as “the
consolidated Ind AS financial statements”).
MANAGEMENT’S RESPONSIBILITY FOR THE
CONSOLIDATED IND AS 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
Ind AS financial statements that give a true and fair view of the
consolidated financial position, consolidated financial performance
including other comprehensive income , consolidated cash flows
and change in equity of the Group including its associates and
jointly controlled entities in accordance with the accounting
principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) prescribed under Section 133 of the
Act read with relevant rules issued thereunder.
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 Ind AS financial statements by the Board of
Directors of the Holding Company, as aforesaid.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated
Ind AS financial statements based on our audit.
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 comparative 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 consolidated Ind AS
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 Ind
AS financial statements. The procedures selected depend on
the auditor’s judgment, including the assessment of the risks
of material misstatement of the consolidated Ind AS 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
Ind AS 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 Ind
AS 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 Ind AS 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, referred to in the Other Matters paragraph
below, the aforesaid consolidated Ind AS 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 including Ind AS , of the
consolidated state of affairs of the Group, its associates and jointly
controlled entities as at March 31, 2017, and their consolidated
profit and their consolidated cash flows and the consolidated
changes in equity for the year ended on that date.
OTHER MATTERS
a)
The consolidated Ind AS financial statements include the
Holding Company’s proportionate share in jointly controlled
operations relating to assets of Rs. 767 crore, liabilities of
Rs. 73 crore, expenditure of Rs. 591 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 Operators and certified by the
management.
b)
c)
Financial statements / consolidated financial statements of
certain subsidiaries which reflect total assets of Rs. 329,209
crore as at March 31, 2017 / December 31, 2016, total
revenues of Rs. 57,979 crore and net cash flows amounting to
( Rs. 2,905) 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 and joint ventures
in which the share of loss (net) of the Group is Rs. 34 crore
have been audited by one of us.
We did not audit the financial statements / consolidated
financial statements of certain subsidiaries, whose financial
statements / consolidated financial statements reflect total
assets of Rs. 50,129 crore as at March 31, 2017 / December 31,
2016, total revenues of Rs. 28,739 crore and net cash flows of
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 349
INDEPENDENT AUDITORS’ REPORT
d)
Rs. 38 crore for the year then ended, as the case may be, on
that date and financial statements of certain associates and
joint ventures in which the share of net loss of the Group is
Rs. 8 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.
We have relied on the unaudited financial statements of an
associate wherein the Group’s share of net profit aggregate
Rs. 41 crore for the year ended March 31, 2017. This
unaudited financial statements as approved by the Board
of Directors of the Company has been furnished to us by
the Management and our report insofar as it relates to the
amounts included in respect of this associate, is based solely
on such approved unaudited financial statements.
Our opinion on the consolidated Ind AS 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 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 Ind AS financial statements.
In our opinion, proper books of account as required
by law relating to preparation of the aforesaid
consolidated Ind AS 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
Statement of Profit and Loss (including Other
Comprehensive Income), Consolidated Statement of
Changes in Equity 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 Ind AS
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, 2017 taken on record by the Board of
Directors of the Holding Company and the reports
of the statutory auditors of its subsidiary companies,
associate companies and jointly controlled companies
incorporated in India, none of the directors of these
entities is disqualified as on March 31, 2017 from being
appointed as a director in terms of Section 164 (2) of
the Act.
f )
g)
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 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.
iv.
The consolidated Ind AS financial statements
disclose the impact of pending litigations on
the consolidated financial position of the Group,
its associates and jointly controlled entities, as
referred to in Note No. 32 to the consolidated
Ind AS financial statements.
Provision has been made in the consolidated
Ind AS 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 Rs.
17 crore, which are held in abeyance due to
pending legal cases.
The Holding Company has provided requisite
disclosures in its consolidated Ind AS
financial statements as to holdings as well as
dealings in Specified Bank Notes as defined
in the Notification S.O. 3407(E) dated the 8th
November, 2016 of the Ministry of Finance,
during the period from November 8, 2016 to
December 30, 2016. Based on audit procedures
performed and the representations provided
to us by the management we report that the
disclosures are in accordance with the books of
accounts maintained by the Holding Company
and the respective group entities, as produced
to us and based on the consideration of report
of other auditors, referred to in the Other
Matters paragraph above. Refer Note No. 40 to
the consolidated Ind AS financial statements.
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 24, 2017
Consolidated Financial Statements02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
350
ANNEXURE “A”
TO THE INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED IND AS 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 Ind AS financial
statements of the Holding Company as of and for the year ended
March 31, 2017, 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.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL
FINANCIAL CONTROLS
The respective Board of Directors of the Holding Company, its
subsidiaries, associates, and jointly controlled entities which
are incorporated in India, are responsible for establishing and
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 (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 respective 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, its subsidiaries, associates and jointly controlled
entities incorporated in India, 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
consolidated Ind AS 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 Holding Company, its subsidiaries,
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
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 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
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 351
ANNEXURE “A”
TO THE INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED IND AS FINANCIAL STATEMENTS
OF RELIANCE INDUSTRIES LIMITED
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, 2017, based on
the internal control over financial reporting criteria established by
the respective companies, considering the essential components of
internal control stated in the Guidance Note.
OTHER MATTERS
Our aforesaid report 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 60 subsidiaries, 1
associate and 3 joint ventures 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
A. B. Jani
Partner
Membership No. 46488
A. R. Shah
Partner
Membership No. 47166
Mumbai
Date: April 24, 2017
Consolidated Financial Statements02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 352
BALANCE SHEET
AS AT 31ST MARCH, 2017
ASSETS
Non-Current Assets
Property, Plant and Equipment
Capital Work-in-Progress
Goodwill
Intangible Assets
Intangible Assets Under Development
Financial Assets
Investments
Loans
Other Non-Current Assets
Total Non-Current Assets
Current Assets
Inventories
Financial Assets
Investments
Trade Receivables
Cash and Cash Equivalents
Loans
Other Financial Assets
Other Current Assets
Total Current Assets
Total Assets
EQUITY AND LIABILITIES
Equity
Equity Share Capital
Other Equity
Non Controlling Interest
Liabilities
Non-Current Liabilities
Financial Liabilities
Borrowings
Other Financial Liabilities
Deferred Payment Liabilities
Provisions
Deferred Tax Liabilities (Net)
Total Non-Current Liabilities
Current Liabilities
Financial Liabilities
Borrowings
Trade Payables
Other Financial Liabilities
Other Current Liabilities
Provisions
Total Current Liabilities
Total Liabilities
Total Equity and Liabilities
Significant Accounting Policies
See accompanying Notes to the Financial Statements
Notes
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
1
1
1
1
2
3
4
5
6
7
8
9
10
12
13
14
15
16
17
18
19
20
21
22
23
1 to 42
1,68,822
2,48,929
4,892
24,812
75,908
25,639
2,708
8,279
5,59,989
53,460
52,751
8,177
3,023
996
8,535
19,871
1,46,813
7,06,802
2,959
2,60,750
2,917
1,52,148
9,025
20,137
2,351
21,198
2,04,859
31,528
76,595
1,04,543
20,882
1,769
2,35,317
4,40,176
7,06,802
1,57,825
1,70,397
4,254
22,831
58,300
41,512
2,032
14,061
4,71,212
46,486
42,503
4,465
11,028
841
6,117
16,345
1,27,785
5,98,997
2,948
2,28,608
3,356
1,41,647
2,249
13,310
1,231
20,494
1,78,931
23,545
60,296
89,533
10,005
1,775
1,85,154
3,64,085
5,98,997
1,46,243
1,02,436
3,471
18,308
40,618
28,951
2,264
16,178
3,58,469
53,244
52,421
4,902
12,357
442
5,710
8,473
1,37,549
4,96,018
2,943
2,05,777
3,313
1,20,453
1,548
7,388
1,011
19,204
1,49,604
27,642
58,548
42,910
3,415
1,866
1,34,381
2,83,985
4,96,018
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
Mumbai
Date : April 24, 2017
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
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
Nita M. Ambani
Raminder Singh Gujral
- Chairman & Managing Director
Executive Directors
Directors
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31ST MARCH, 2017
Notes
2016-17
INCOME
Revenue from Operations
Sale of Products
Income from Services
Other Income
Total Income
EXPENSES
Cost of Materials Consumed
Purchase of Stock-in-Trade
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade
Excise Duty and Service Tax
Employee Benefits Expense
Finance Costs
Depreciation /Amortisation and Depletion Expense
Other Expenses
Total Expenses
Profit Before Share of Profit / (Loss) of Associates and Joint Ventures and Tax
Share of Profit / (Loss) of Associates and Joint Ventures
Profit Before Tax
Tax Expenses
Current Tax
Deferred Tax
Profit for the Year
Other Comprehensive Income:
a)
Items that will not be reclassified to Statement of Profit and Loss
Items that will not be reclassified to Statement of Profit and Loss
Income tax relating to items that will not be reclassified to Statement of
Profit and Loss (Previous Year ` 23,63,459)
Items that will be reclassified to Statement of Profit and Loss
Items that will be reclassified to Statement of Profit and Loss
Income tax relating to items that will be reclassified to Statement of Profit
and Loss
b)
Owners of the Company
Non Controlling Interest
Owners of the Company
Non Controlling Interest
Total Other Comprehensive Income (Net of Tax)
Total Comprehensive Income for the year
Net Profit attributable to:
a)
b)
Other Comprehensive Income attributable to:
a)
b)
Total Comprehensive Income attributable to:
a)
b)
Earnings per equity share of face value of ` 10 each
Basic (in `)
Diluted (in `)
Significant Accounting Policies
See accompanying Notes to the Financial Statements
Owners of the Company
Non Controlling Interest
3,18,749
11,431
3,30,180
9,443
3,39,623
1,75,087
42,431
(5,218)
24,798
8,388
3,849
11,646
38,500
2,99,481
40,142
(108)
40,034
8,880
1,321
29,833
225
(7)
2,198
(589)
1,827
31,660
29,901
(68)
1,823
4
31,724
(64)
101.33
101.14
24
25
26
27
28
11
11
29
29
1 to 42
353
(` in crore)
2015-16
2,85,752
7,546
2,93,298
12,053*
3,05,351
1,58,199
28,055
2,560
19,299
7,407
3,691
11,565
36,074
2,66,850
38,501
236
38,737
8,042
834
29,861
(55)
-
1,229
(228)
946
30,807
29,745
116
951
(5)
30,696
111
100.97
100.75
*
Includes Exceptional item of ` 4,574 crore.
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
Mumbai
Date : April 24, 2017
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
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
Nita M. Ambani
Raminder Singh Gujral
- Chairman & Managing Director
Executive Directors
Directors
Consolidated Financial Statements02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
354
I
I
Y
T
U
Q
E
N
S
E
G
N
A
H
C
F
O
T
N
E
M
E
T
A
T
S
,
7
1
0
2
H
C
R
A
M
T
S
1
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
C
N
A
N
I
F
I
)
e
r
o
r
c
n
i
`
(
d
n
e
e
h
t
t
a
e
c
n
a
l
a
B
y
t
i
u
q
e
n
i
s
e
g
n
a
h
C
9
5
9
2
,
7
1
0
2
,
h
c
r
a
M
t
s
1
3
1
1
7
1
-
6
1
0
2
r
a
e
y
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
f
o
e
h
t
g
n
i
r
u
d
l
a
t
i
p
a
c
e
r
a
h
s
8
4
9
2
,
5
6
1
0
2
,
h
c
r
a
M
t
s
1
3
d
n
e
e
h
t
t
a
e
c
n
a
l
a
B
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
f
o
6
1
-
5
1
0
2
r
a
e
y
y
t
i
u
q
e
n
i
s
e
g
n
a
h
C
e
h
t
g
n
i
r
u
d
l
a
t
i
p
a
c
e
r
a
h
s
)
e
r
o
r
c
n
i
`
(
l
a
t
o
T
r
e
h
t
O
*
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
d
e
n
i
a
t
e
R
i
s
g
n
n
r
a
E
l
a
r
e
n
e
G
e
v
r
e
s
e
R
e
r
a
h
S
d
e
s
a
B
s
e
r
u
t
n
e
b
e
D
n
o
i
t
p
m
e
d
e
R
e
v
r
e
s
e
R
t
n
u
o
c
c
A
s
t
n
e
m
y
a
P
e
v
r
e
s
e
R
l
s
u
p
r
u
S
d
n
a
s
e
v
r
e
s
e
R
s
e
i
t
i
r
u
c
e
S
i
m
u
m
e
r
P
e
v
r
e
s
e
R
l
a
t
i
p
a
C
e
v
r
e
s
e
R
n
o
i
t
p
m
e
d
e
R
l
a
t
i
p
a
C
e
v
r
e
s
e
R
n
i
e
r
a
h
S
f
o
e
v
r
e
s
e
R
e
t
a
i
c
o
s
s
A
y
r
o
t
u
t
a
t
S
s
e
v
r
e
s
e
R
e
v
r
e
s
e
R
n
o
i
t
a
u
l
a
v
e
R
y
e
n
o
M
i
g
n
d
n
e
P
e
r
a
h
S
n
o
i
t
a
c
i
l
p
p
A
t
n
e
m
t
o
l
l
A
L
A
T
I
P
A
C
E
R
A
H
S
Y
T
I
U
Q
E
.
A
i
i
g
n
n
n
g
e
b
e
h
t
t
a
e
c
n
a
l
a
B
3
4
9
2
,
5
1
0
2
,
l
i
r
p
A
t
s
1
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
f
o
Y
T
I
U
Q
E
R
E
H
T
O
.
B
6
1
0
2
,
H
C
R
A
M
T
S
1
3
N
O
S
A
,
7
7
7
5
0
2
,
9
0
0
4
,
9
5
2
3
,
,
4
1
2
3
5
1
,
0
2
7
1
1
1
,
1
9
6
2
4
,
5
9
1
7
3
0
1
7
4
1
7
2
8
7
1
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
i
f
o
g
n
n
n
g
e
b
e
h
t
i
t
a
e
c
n
a
a
B
l
6
9
6
0
3
,
)
9
3
0
6
(
,
)
0
2
2
1
(
,
-
1
8
2
)
7
8
8
(
,
8
0
6
8
2
2
,
-
-
-
1
5
9
)
9
8
5
1
(
,
-
1
7
3
3
,
5
4
7
9
2
,
)
9
3
0
6
(
,
)
0
2
2
1
(
,
-
-
-
)
9
3
0
2
2
(
,
0
0
0
2
2
,
-
4
7
7
0
8
4
4
,
-
-
,
4
1
2
5
7
1
,
-
-
-
-
-
)
2
(
8
1
-
-
-
3
-
-
-
-
-
-
-
2
9
2
-
-
-
1
-
-
0
2
1
1
,
3
8
9
2
4
,
6
9
-
-
-
-
-
)
0
8
(
1
9
2
-
-
-
-
-
-
-
-
-
-
-
5
3
-
-
-
-
8
-
0
1
2
8
1
5
3
8
-
-
-
-
-
8
)
9
(
t
s
1
3
,
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
f
o
d
n
e
e
h
t
t
a
e
c
n
a
l
a
B
s
n
o
i
t
p
O
k
c
o
t
S
e
e
y
o
p
m
E
n
O
l
6
1
0
2
,
h
c
r
a
M
i
s
g
n
n
r
a
E
d
e
n
a
t
e
R
)
i
m
o
r
f
(
/
o
t
r
e
f
s
n
a
r
T
s
r
e
h
t
O
r
a
e
y
e
h
t
r
o
f
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
l
a
t
o
T
5
1
0
2
,
l
i
r
p
A
t
s
1
,
.
e
.
i
d
n
e
d
v
D
i
i
i
i
d
n
e
d
v
d
n
o
x
a
T
e
v
r
e
s
e
R
n
o
i
t
a
l
s
n
a
r
T
y
c
n
e
r
r
u
C
n
g
e
r
o
F
n
i
i
t
n
e
m
e
v
o
m
t
e
n
s
e
d
u
l
c
n
I
*
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
)
e
r
o
r
c
n
i
`
(
l
a
t
o
T
r
e
h
t
O
*
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
d
e
n
i
a
t
e
R
i
s
g
n
n
r
a
E
l
a
r
e
n
e
G
e
v
r
e
s
e
R
e
r
a
h
S
d
e
s
a
B
s
e
r
u
t
n
e
b
e
D
n
o
i
t
p
m
e
d
e
R
e
v
r
e
s
e
R
t
n
u
o
c
c
A
s
t
n
e
m
y
a
P
e
v
r
e
s
e
R
l
s
u
p
r
u
S
d
n
a
s
e
v
r
e
s
e
R
s
e
i
t
i
r
u
c
e
S
i
m
u
m
e
r
P
e
v
r
e
s
e
R
l
a
t
i
p
a
C
e
v
r
e
s
e
R
n
o
i
t
p
m
e
d
e
R
l
a
t
i
p
a
C
e
v
r
e
s
e
R
n
i
e
r
a
h
S
f
o
e
v
r
e
s
e
R
e
t
a
i
c
o
s
s
A
y
r
o
t
u
t
a
t
S
s
e
v
r
e
s
e
R
e
v
r
e
s
e
R
n
o
i
t
a
u
l
a
v
e
R
y
e
n
o
M
i
g
n
d
n
e
P
e
r
a
h
S
n
o
i
t
a
c
i
l
p
p
A
t
n
e
m
t
o
l
l
A
,
8
0
6
8
2
2
,
1
7
3
3
,
0
8
4
4
,
,
4
1
2
5
7
1
,
4
2
7
1
3
,
3
2
8
1
,
1
0
9
9
2
,
-
-
7
8
6
)
9
6
2
(
-
-
-
,
0
5
7
0
6
2
,
4
9
1
5
,
)
6
5
8
4
2
(
,
0
9
7
4
2
,
-
)
2
5
2
(
3
7
2
9
,
-
-
,
4
0
0
0
0
2
,
8
1
0
2
1
1
,
3
8
9
2
4
,
6
9
1
9
2
0
1
2
8
1
5
3
8
-
-
-
)
2
(
6
1
-
-
-
-
-
-
)
2
5
(
3
9
6
-
-
-
-
-
-
-
-
-
-
-
-
-
6
6
-
-
0
2
1
1
,
4
2
6
3
4
,
6
9
1
9
2
0
1
8
4
2
-
-
-
5
3
0
7
8
8
-
-
-
4
)
4
(
t
s
1
,
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
i
f
o
g
n
n
n
g
e
b
e
h
t
i
t
a
e
c
n
a
a
B
l
6
1
0
2
,
l
i
r
p
A
t
s
1
3
,
.
e
.
i
d
o
i
r
e
p
g
n
i
t
r
o
p
e
r
e
h
t
f
o
d
n
e
e
h
t
t
a
e
c
n
a
l
a
B
s
n
o
i
t
p
O
k
c
o
t
S
e
e
y
o
p
m
E
n
O
l
r
a
e
y
e
h
t
r
o
f
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
l
a
t
o
T
i
s
g
n
n
r
a
E
d
e
n
a
t
e
R
)
i
m
o
r
f
(
/
o
t
r
e
f
s
n
a
r
T
s
r
e
h
t
O
7
1
0
2
,
H
C
R
A
M
T
S
1
3
N
O
S
A
e
v
r
e
s
e
R
n
o
i
t
a
l
s
n
a
r
T
y
c
n
e
r
r
u
C
n
g
e
r
o
F
n
i
i
t
n
e
m
e
v
o
m
t
e
n
s
e
d
u
l
c
n
I
*
7
1
0
2
,
h
c
r
a
M
r
o
f
)
e
r
o
r
c
3
7
9
`
r
a
e
Y
s
u
o
v
e
r
P
(
3
1
0
2
i
i
,
t
c
A
s
e
n
a
p
m
o
C
e
h
t
f
o
)
4
(
1
7
n
o
i
t
c
e
S
f
o
s
m
r
e
t
n
i
,
l
e
r
o
r
c
3
4
9
1
`
f
o
t
n
u
o
m
a
e
v
i
t
a
u
m
u
c
a
r
o
f
d
e
t
a
e
r
c
n
e
e
b
t
o
n
s
a
h
e
v
r
e
s
e
R
n
o
i
t
p
m
e
d
e
R
e
r
u
t
n
e
b
e
D
e
h
T
d
r
a
o
B
e
h
t
f
o
f
l
a
h
e
b
n
o
d
n
a
r
o
F
.
r
a
e
y
e
h
t
r
o
f
s
s
o
l
/
t
fi
o
r
p
e
t
a
u
q
e
d
a
n
i
f
o
w
e
v
n
i
i
d
e
t
i
i
m
L
m
m
o
c
o
f
n
I
o
i
J
e
c
n
a
i
l
e
R
e
t
a
d
n
e
v
e
f
o
t
r
o
p
e
R
r
u
o
r
e
p
s
A
I
I
Y
T
U
Q
E
N
S
E
G
N
A
H
C
F
O
T
N
E
M
E
T
A
T
S
,
7
1
0
2
H
C
R
A
M
T
S
1
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
355
r
o
t
c
e
r
i
i
D
g
n
g
a
n
a
M
&
n
a
m
r
i
a
h
C
-
s
r
o
t
c
e
r
i
D
e
v
i
t
u
c
e
x
E
s
r
o
t
c
e
r
i
D
a
r
s
i
M
k
o
h
s
A
n
i
a
J
.
C
k
a
p
D
i
.
f
o
r
P
.
f
o
r
P
r
a
k
l
e
h
s
a
M
.
A
R
.
.
r
D
r
u
p
a
K
.
.
V
D
.
r
D
l
i
a
h
b
u
n
i
a
Z
l
i
d
A
i
n
a
b
m
A
.
M
a
t
i
N
l
a
r
j
u
G
h
g
n
i
S
r
e
d
n
m
a
R
i
i
n
a
b
m
A
.
.
D
M
i
i
n
a
w
s
e
M
n
a
w
s
e
M
.
.
.
R
N
.
R
H
d
a
s
a
r
P
.
.
S
M
P.
a
t
k
a
h
B
l
i
p
a
K
.
K
P.
.
L
.
M
i
d
e
v
i
r
T
P.
Y
.
s
t
n
a
t
n
u
o
c
c
A
d
e
r
e
t
r
a
h
C
.
o
C
&
a
r
d
n
e
j
a
R
r
o
F
P
L
L
s
l
l
e
S
&
s
n
i
k
s
a
H
e
t
t
i
o
l
e
D
r
o
F
s
t
n
a
t
n
u
o
c
c
A
d
e
r
e
t
r
a
h
C
h
a
h
S
&
i
d
e
v
r
u
t
a
h
C
r
o
F
s
t
n
a
t
n
u
o
c
c
A
d
e
r
e
t
r
a
h
C
y
r
a
t
e
r
c
e
S
y
n
a
p
m
o
C
n
a
m
a
r
u
h
t
e
S
.
K
r
e
n
t
r
a
P
h
a
h
S
.
.
R
A
i
r
a
h
c
a
t
a
k
n
e
V
h
t
n
a
k
i
r
S
l
a
w
r
a
g
A
k
o
A
l
i
n
a
J
.
B
.
A
r
e
n
t
r
a
P
i
d
e
v
r
u
t
a
h
C
.
D
h
s
e
j
a
R
r
e
n
t
r
a
P
r
e
c
ffi
O
l
i
a
i
c
n
a
n
F
f
e
h
C
t
n
o
J
i
i
r
e
c
ffi
O
l
i
a
i
c
n
a
n
F
f
e
h
C
i
7
1
0
2
,
4
2
l
i
r
p
A
:
e
t
a
D
i
a
b
m
u
M
Consolidated Financial Statements02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
356
CASH FLOW STATEMENT
FOR THE YEAR ENDED 2016-17
A: CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Tax as per Statement of Profit and Loss
Adjusted for:
Miscellaneous Expenditure written off
Share of (Profit) / Loss of Associates and Joint Ventures
(Profit) / 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 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 Flow from Operating Activities
B: CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Tangible and Intangible Assets
Proceeds from disposal of Tangible and Intangible Assets
Purchase of Investments
Proceeds from Sale of Financial Assets
Net Cash Flow for Other Financial Assets
Maturity of Fixed Deposits
Interest Income
Dividend Income from Associates
Dividend Income from Others
(` in crore)
2016-17
2015-16
40,034
-
108
(461)
11,646
(2,266)
-
(5,410)
-
(345)
(2,985)
3,849
44,170
(8,511)
(6,899)
30,873
59,633
(10,083)
49,550
(78,109)
1,482
(6,54,760)
6,63,990
(321)
(29)
1,110
10
335
38,737
1
(236)
51
11,565
(3,480)
(43)
(2,849)
(4,574)
(732)
(3,244)
3,691
38,887
(6,880)
6,758
7,951
46,716
(8,582)
38,134
(46,898)
344
(7,15,334)
7,21,182
775
67
2,942
10
722
Net Cash Flow (Used in) Investing Activities
(66,292)
(36,190)
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 CASH FLOW STATEMENT
FOR THE YEAR ENDED 2016-17
C: CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Issue of Equity Share Capital
Proceeds from Issue of Share Capital to Non Controlling Interest
Redemption of Preference Share Capital of Non Controlling Interest
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 Flow from / (Used in) 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. 8)
*
Include towards Unclaimed Dividend of ` 241 crore (Previous Year ` 223 crore)
357
(` in crore)
2016-17
2015-16
692
119
(6)
4
31,728
(18,542)
7,595
(53)
(12,920)
-
8,617
(8,125)
11,023
91
11,114
2,989
283
5
(2)
8
34,673
(17,689)
(4,004)
(7,259)
(9,224)
(1)
(3,210)
(1,266)
12,285
4
12,289
11,023
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
Mumbai
Date : April 24, 2017
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
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
Nita M. Ambani
Raminder Singh Gujral
- Chairman & Managing Director
Executive Directors
Directors
Consolidated Financial Statements02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 358
A.
CORPORATE INFORMATION
Reliance Industries Limited (“the Company”) is a listed entity incorporated in India.
The addresses of its registered office and principal place of business are disclosed in the introduction to the annual report.
B.
SIGNIFICANT ACCOUNTING POLICIES
B.1 BASIS OF PREPARATION AND PRESENTATION
The consolidated financial statements have been prepared on the historical cost basis except for the following assets and liabilities
which have been measured at fair value amount:
i)
ii)
Certain financial assets and liabilities (including derivative instruments),
Defined benefit plan’s - plan assets and
iii)
Equity settled share based payments
The consolidated financial statements of the Group have been prepared to comply with the Indian Accounting standards (‘Ind AS’),
including the rules notified under the relevant provisions of the Companies Act, 2013.
Upto the year ended March 31, 2016, the Group has prepared its consolidated financial statements in accordance with the
requirement of Indian Generally Accepted Accounting Principles (GAAP), which includes Standards notified under the Companies
(Accounting Standards) Rules, 2006 and considered as “Previous GAAP”.
These consolidated financial statements are the Group`s first Ind AS consolidated financial statements. The figures for the previous
period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.
The Company’s consolidated financial statements are presented in Indian Rupees (`).
B.2 PRINCIPLES OF CONSOLIDATION
The consolidated financial statements relate to Reliance Industries Limited (‘the Company’) and its subsidiary companies, associates
and joint ventures. The consolidated financial statements have been prepared on the following basis:
(a)
The financial statements of the Company and its subsidiaries are combined on a line by line basis by adding together like items
of assets, liabilities, equity, incomes, expenses and cash flows, after fully eliminating intra-group balances and intra-group
transactions.
(b)
Profits or losses resulting from intra-group transactions that are recognised in assets, such as inventory and property, plant &
equipment, are eliminated in full.
(c)
In case of foreign subsidiaries, 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 Foreign Currency Translation Reserve.
(d)
Offset (eliminate) the carrying amount of the parent’s investment in each subsidiary and the parent’s portion of equity of each
subsidiary.
(e)
The difference between the proceeds from disposal of investment in subsidiaries and the carrying amount of its assets less
liabilities as on the date of disposal is recognised in the Consolidated Statement of Profit and Loss being the profit or loss on
disposal of investment in subsidiary.
(f )
Non Controlling Interest’s share of profit / loss 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
359
(g)
Non Controlling Interest’s share of net assets of consolidated subsidiaries is identified and presented in the Consolidated
Balance Sheet separate from liabilities and the equity of the Company’s shareholders.
(h)
Investment in Associates and Joint Ventures has been accounted under the equity method as per Ind AS 28 - Investments in
Associates and Joint Ventures.
(i)
The Company accounts for its share of post acquisition changes in net assets of associates and joint ventures, after eliminating
unrealised profits and losses resulting from transactions between the Company and its associates to the extent of its share,
through its Consolidated Statement of Profit and Loss, to the extent such change is attributable to the associates’ Statement of
Profit and Loss and through its reserves for the balance based on available information.
C.
OTHER SIGNIFICANT ACCOUNTING POLICIES
These are set out under “Significant Accounting Policies” as given in the Company’s standalone financial statements.
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
360
)
e
r
o
r
c
n
i
`
(
l
k
c
o
B
t
e
N
t
a
s
A
t
a
s
A
t
a
s
A
t
a
s
A
/
s
n
o
i
t
c
u
d
e
D
5
1
0
2
4
0
-
1
0
6
1
0
2
3
0
-
1
3
7
1
0
2
-
3
0
-
1
3
7
1
0
2
-
3
0
-
1
3
s
t
n
e
m
t
s
u
d
A
j
N
O
I
T
E
L
P
E
D
/
N
O
I
T
A
S
I
T
R
O
M
A
/
I
N
O
I
T
A
C
E
R
P
E
D
e
h
t
r
o
F
#
r
a
e
Y
t
a
s
A
6
1
0
2
-
4
0
-
1
0
/
s
n
o
i
t
i
d
d
A
/
)
s
n
o
i
t
c
u
d
e
D
(
s
t
n
e
m
t
s
u
d
A
j
t
c
a
p
m
I
S
A
D
N
I
n
o
n
o
i
t
i
s
n
a
r
T
t
a
s
A
5
1
0
2
4
0
-
1
0
t
a
s
A
7
1
0
2
-
3
0
-
1
3
/
s
n
o
i
t
c
u
d
e
D
s
t
n
e
m
t
s
u
d
A
j
/
s
n
o
i
t
i
d
d
A
t
a
s
A
s
t
n
e
m
t
s
u
d
A
j
6
1
0
2
-
4
0
-
1
0
/
s
n
o
i
t
i
d
d
A
/
)
s
n
o
i
t
c
u
d
e
D
(
s
t
n
e
m
t
s
u
d
A
j
t
c
a
p
m
I
S
A
D
N
I
n
o
n
o
i
t
i
s
n
a
r
T
t
a
s
A
5
1
0
2
-
4
0
-
1
0
K
C
O
L
B
S
S
O
R
G
n
o
i
t
p
i
r
c
s
e
D
I
I
S
T
N
E
M
E
T
A
T
S
L
A
C
N
A
N
F
D
E
T
A
D
L
O
S
N
O
C
E
H
T
O
T
S
E
T
O
N
I
,
7
1
0
2
H
C
R
A
M
T
S
1
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
C
N
A
N
I
F
I
8
1
6
0
4
,
0
0
3
8
5
,
8
0
9
5
7
,
,
6
3
4
2
0
1
,
,
7
9
3
0
7
1
,
,
9
2
9
8
4
2
,
4
7
6
5
1
,
6
6
5
4
4
,
9
6
4
9
,
5
5
6
9
6
,
2
4
8
2
,
6
4
0
3
,
1
8
4
3
0
3
3
9
4
1
9
9
8
7
1
,
9
0
8
4
4
,
1
9
1
0
1
,
1
0
6
8
7
,
9
1
6
2
,
4
9
7
2
,
3
6
4
2
9
2
1
2
1
2
1
2
8
6
7
1
,
3
5
9
4
4
,
1
9
1
3
1
,
6
7
5
3
8
,
1
8
2
2
,
1
6
8
2
,
7
5
6
0
7
2
8
7
1
1
5
1
3
,
-
9
9
3
1
,
8
2
6
5
,
3
1
0
6
9
,
9
2
4
3
,
6
1
6
3
,
6
4
8
1
2
5
3
3
3
6
8
1
-
3
5
4
2
1
6
1
,
8
3
2
6
5
4
1
-
-
8
1
4
9
3
5
1
1
6
7
,
5
7
9
0
5
5
4
1
1
7
2
1
3
3
2
5
1
-
6
2
0
1
,
2
9
0
5
,
4
1
0
0
9
,
2
6
4
2
,
9
8
0
3
,
8
3
7
9
3
4
1
0
3
4
3
,
3
4
1
6
4
1
,
,
1
0
8
7
5
1
,
,
0
0
8
8
6
1
,
,
1
7
9
1
1
1
,
3
4
7
1
,
9
1
5
0
1
,
,
5
9
1
3
0
1
,
-
5
0
3
9
4
5
4
6
2
6
,
9
4
4
8
1
6
3
8
7
7
7
2
-
8
)
4
4
(
)
3
6
8
(
)
1
(
)
1
3
(
)
0
3
(
-
-
-
-
5
6
7
5
3
5
4
,
3
1
6
4
8
,
4
1
0
2
,
2
0
5
2
,
5
8
6
2
6
3
4
9
2
2
3
4
5
3
8
,
)
1
6
9
(
2
0
8
5
9
,
1
8
0
9
1
,
3
5
9
4
4
,
9
1
8
8
1
,
,
9
8
5
9
7
1
,
0
1
7
5
,
7
7
4
6
,
3
0
5
1
,
1
9
7
4
8
4
3
,
4
6
3
,
1
7
7
0
8
2
,
0
0
1
-
0
0
1
4
2
-
4
2
2
2
-
2
2
0
5
2
0
1
0
6
2
-
-
-
1
-
1
9
4
2
0
1
9
5
2
-
7
7
7
7
-
)
7
7
(
)
7
7
(
9
4
2
0
1
9
5
2
2
7
2
0
1
2
8
2
,
3
4
2
6
4
1
,
,
5
2
8
7
5
1
,
,
2
2
8
8
6
1
,
,
1
3
2
2
1
1
,
2
0
5
1
8
1
1
,
3
0
8
2
,
2
2
8
3
1
.
8
0
3
8
1
,
2
4
4
9
7
2
1
,
3
7
7
2
,
7
3
3
8
1
,
1
3
8
2
2
,
6
1
5
3
2
1
1
,
5
8
8
1
,
8
8
2
1
2
,
2
1
8
4
2
,
1
6
5
2
,
2
7
3
1
,
6
1
1
1
,
7
8
4
5
4
,
6
3
5
0
5
,
,
1
5
5
4
6
1
,
,
6
5
6
0
8
1
,
,
4
3
6
3
9
1
,
,
7
6
7
2
6
1
,
3
4
7
1
,
0
2
5
0
1
,
-
1
-
1
1
1
2
1
1
5
5
8
1
,
4
6
1
2
9
1
3
6
4
9
0
3
,
3
1
5
3
,
3
3
0
4
1
,
,
4
5
4
3
0
1
,
1
3
4
8
,
)
8
3
0
1
(
,
1
6
0
6
9
,
,
3
5
0
1
8
2
,
7
9
3
2
,
1
8
1
1
,
4
6
1
1
,
3
9
3
2
4
,
5
3
1
7
4
,
,
9
8
5
0
5
1
,
4
5
1
9
6
1
2
5
0
8
6
3
,
5
5
0
4
,
6
8
4
2
1
,
-
)
8
1
(
)
6
3
(
6
8
7
6
,
2
3
7
6
,
4
9
6
5
,
3
4
2
2
,
0
3
0
1
,
8
4
1
1
,
7
2
9
1
3
,
8
4
3
6
3
,
4
8
6
3
,
8
8
8
1
,
1
0
0
3
,
5
7
7
6
6
,
8
4
3
5
7
,
,
9
0
4
2
3
1
,
,
1
0
4
6
5
3
,
1
1
3
6
4
4
9
4
1
1
2
0
1
3
5
-
2
0
1
9
0
2
1
,
1
-
1
9
1
2
5
4
1
7
3
5
3
,
8
1
9
1
1
,
3
4
6
5
1
6
2
1
3
3
1
1
8
1
3
4
6
1
3
,
4
8
9
0
2
,
-
-
-
0
1
2
1
,
4
8
9
0
2
,
-
1
-
5
7
9
6
7
9
6
8
1
2
,
8
9
3
6
6
2
5
4
0
6
,
8
5
3
6
,
2
4
3
7
2
,
5
2
9
8
1
,
9
0
8
4
4
,
3
8
2
5
1
,
,
5
1
6
8
6
1
,
1
8
0
5
,
3
8
8
5
,
1
0
2
1
,
1
3
7
2
2
4
6
4
,
6
9
9
0
6
2
,
3
4
2
0
3
5
2
,
1
7
2
1
,
0
1
2
5
1
,
6
2
2
6
6
3
5
6
6
6
5
3
-
5
4
0
3
5
3
1
,
2
7
5
7
3
,
)
8
9
9
4
(
,
)
6
(
)
4
5
(
)
8
7
(
)
1
(
-
-
2
1
0
0
2
,
0
1
0
6
4
,
1
6
8
4
,
1
7
5
5
,
4
1
2
1
,
6
6
6
7
8
3
6
4
,
3
0
4
8
5
1
,
,
4
7
9
4
9
1
,
3
7
2
0
1
3
8
2
1
-
1
-
)
3
(
)
3
(
5
7
2
0
1
5
8
2
,
9
7
2
1
6
2
,
3
1
0
0
2
,
7
0
0
6
4
,
,
9
5
2
5
9
1
,
6
7
6
3
,
3
2
6
1
,
7
3
9
3
,
0
3
7
0
6
,
6
6
9
9
6
,
,
5
4
2
1
3
3
,
2
5
2
9
0
1
2
2
5
9
1
8
,
8
7
5
8
,
1
9
5
8
2
,
)
2
(
)
0
3
(
)
5
5
(
)
6
3
7
7
2
(
,
6
2
4
3
,
4
4
5
1
,
0
7
9
3
,
1
7
2
0
8
,
)
3
2
8
7
2
(
,
1
1
2
9
8
,
4
8
1
8
1
,
,
0
7
4
4
8
2
,
s
n
o
i
t
a
l
l
a
t
s
n
I
l
a
c
i
r
t
c
e
E
l
s
e
r
u
t
x
i
F
&
e
r
u
t
i
n
r
u
F
$
s
t
n
e
m
p
u
q
E
i
s
e
l
c
i
h
e
V
i
s
p
h
S
s
r
e
t
p
o
c
i
l
e
H
&
s
t
f
a
r
c
r
i
A
:
s
t
e
s
s
A
d
e
s
a
e
L
l
a
t
o
T
-
b
u
S
i
y
r
e
n
h
c
a
M
&
t
n
a
P
l
i
y
r
e
n
h
c
a
M
&
t
n
a
P
l
l
a
t
o
T
-
b
u
S
i
s
p
h
S
)
A
(
l
a
t
o
T
s
e
e
F
w
o
h
w
o
n
K
l
a
c
i
n
h
c
e
T
*
S
T
E
S
S
A
E
L
B
G
N
A
T
N
I
I
e
r
a
w
t
f
o
S
s
s
e
r
g
o
r
P
-
n
i
-
k
r
o
W
a
t
i
p
a
C
l
)
B
+
A
(
l
a
t
o
T
)
B
(
l
a
t
o
T
s
r
e
h
t
O
r
e
d
n
u
s
t
e
s
s
A
e
b
g
n
a
t
n
l
i
I
i
s
t
h
g
R
t
n
e
m
p
o
e
v
e
D
l
5
6
8
2
,
4
9
9
6
,
7
6
9
3
1
,
s
t
e
s
s
A
e
l
b
g
n
a
T
i
l
d
n
a
L
d
o
h
e
s
a
e
L
l
d
n
a
L
d
o
h
e
e
r
F
:
s
t
e
s
s
A
n
w
O
s
g
n
d
i
l
i
u
B
I
T
N
E
M
P
U
Q
E
&
T
N
A
L
P
,
Y
T
R
E
P
O
R
P
.
1
.
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
s
i
l
i
a
t
i
p
a
c
)
e
r
o
r
c
1
5
3
`
r
a
e
y
s
u
o
v
e
r
P
(
e
r
o
r
c
5
4
3
`
f
o
n
o
i
t
a
i
c
e
r
p
e
d
s
e
d
u
l
c
n
i
r
a
e
y
e
h
t
r
o
f
n
o
i
t
a
i
c
e
r
p
e
D
d
e
t
a
r
e
n
e
g
y
l
l
a
n
r
e
t
n
i
n
a
h
t
r
e
h
t
O
i
s
t
n
e
m
p
u
q
E
e
c
ffi
O
s
e
d
u
l
c
n
I
t
n
e
m
p
o
e
v
e
D
l
$
*
#
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
361
1.1 Leasehold Land includes :
i)
` 778 crore (Previous Year ` 777 crore) in respect of which lease-deeds are pending execution.
1.2 Buildings includes :
i)
ii)
Cost of shares in Co-operative Societies ` 2,00,200 (Previous Year ` 1,99,950).
` 135 crore (Previous Year ` 135 crore) in shares of Companies / Societies with right to hold and use certain area of
Buildings.
1.3
Intangible Assets - Others includes :
i)
Jetties amounting to ` 812 crore (Previous Year ` 812 crore), the Ownership of which vests with Gujarat Maritime Board.
ii)
` 1,935 crore (Previous Year ` 2,899 crore) in shares of companies and lease premium paid with right to hold and use
Land and Buildings.
1.4 Capital Work-in-Progress and Intangible Assets under Development includes :
i)
ii)
` 59,095 crore (Previous Year ` 31,814 crore) on account of Project Development Expenditure.
` 28,667 crore (Previous Year ` 33,432 crore) on account of cost of construction materials at site.
1.5 Project Development Expenditure :
(in respect of Projects upto 31st March, 2017, included under Capital Work-in-Progress and Intangible Assets under
Development)
2016-17
2015-16
Opening Balance
Add: Transferred from Statement of Profit and Loss
(Refer Note No. 28)
Expenses on Project under Construction
Interest Capitalised
1,961
14,776
10,942
Less:
Project Development Expenses Capitalised during the
year
Closing Balance
2,507
6,770
8,096
31,814
27,679
398
59,095
(` in crore)
14,998
17,373
557
31,814
1.6
1.7
Additions in Plant and Machinery, Capital Work-in-Progress, Intangible Assets - Development Rights and Intangible Assets
under Development includes ` 4,643 crore (net loss) [Previous Year ` 9,914 crore (net loss)] on account of exchange difference
during the year.
Depreciation / Amortisation / Depletion for the year includes ` 1,602 crore and ` 145 crore on account of consolidation of RP
Chemicals (Malaysia) Sdn. Bhd. and Reliance Commercial Dealers Limited respectively which have been acquired during the
financial year 2016-17.
1.8 Assets include assets pledged as security - Refer Note No. 15.1 and 15.2.
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
362
Particulars
2.
A.
NON-CURRENT INVESTMENTS
Investment in Associates
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
Units Amount
Units Amount
(` in crore)
Investments measured at Cost
In Equity Shares - Quoted, Fully paid up
Reliance Industrial Infrastructure Limited of
` 10 each
In Equity Shares - Unquoted, Fully paid up
Aeon Learning Private Limited of ` 1 each
[` 1,00,000; (Previous Year : ` 1,00,000;
1st April, 2015: ` 1,00,000]
Algenol LLC
Aurora Algae Inc.
Big Tree Entertainment Private Limited of ` 10
each
Eenadu Television Private Limited of ` 10 each
EFS Midstream LLC
Extramarks Education Private Limited of ` 10
each
Gaurav Overseas Private Limited of ` 10 each
[` 19,21,993; (Previous Year : ` 19,31,469;
1st April, 2015: ` 9,45,470)]
Gujarat Chemical Port Terminal Company
Limited of ` 1 each
Indian Vaccines Corporation Limited of ` 10
each
Matrix Genetics LLC
Reliance Commercial Dealers Private Limited
of ` 10 each
Reliance Commercial Trading Private Limited
of ` 10 each
Reliance Europe Limited of Sterling Pound 1
each
Reliance Jio Infratel Private Limited of ` 10
each (1st April, 2015: ` 40,500)
Reliance LNG Limited of ` 10 each (Previous
Year: ` 2,04,824; 1st April, 2015: ` 2,14,493)
Reliance Luxury Fashion Private Limited of
` 10 each (` 50,000)
Reliance Utilities and Power Private Limited
Class ‘A’ shares of ` 1 each [` 40,40,000;
(Previous Year : ` 40,40,000; 1st April, 2015:
` 40,40,000)]
Wespro Digital Private Limited of ` 10 each
(1st April, 2015: ` 3,41,532)
Vayana Private Limited of ` 10 each
24x7 Learning Private Limited of ` 10 each
In Equity Shares - Unquoted, Partly paid up
Vayana Private Limited of ` 10 each, ` 5.50
paid up
68,60,064
1,00,000
2,87,56,718
-
17,04,279
60,94,190
-
-
171
171
-
1
-
-
274
-
-
68,60,064
1,00,000
1,60,40,769
-
8,479
60,94,190
-
46,87,500
164
164
-
-
-
19
259
-
125
68,60,064
1,00,000
51,54,872
6,31,42,865
8,479
157
157
-
-
-
19
60,94,190
-
46,87,500
255
1,795
125
2,10,000
-
2,10,000
-
1,05,000
-
64,29,20,000
198
64,29,20,000
158
64,29,20,000
106
62,63,125
52,49,344
-
-
1
-
-
-
62,63,125
52,49,344
74,99,990
5,000
11,08,500
33
11,08,500
-
-
5,000
52,00,000
-
35,93,552
6,45,558
-
-
22,500
-
52,00,000
-
31,76,645
6,45,558
4,16,907
-
-
-
-
-
23
-
530
-
-
1
-
11
-
33
-
-
-
-
-
21
-
627
3
3
62,63,125
52,49,344
74,99,990
5,000
11,08,500
5,000
22,500
-
52,00,000
8,014
-
6,45,558
-
1
-
11
-
32
-
-
-
-
-
-
-
2,344
-
-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 363
Particulars
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
Units Amount
Units Amount
(` in crore)
In Preference Shares - Unquoted, Fully
paid up
Aeon Learning Private Limited of ` 1 each
[` 1,020; (Previous Year: ` 1,020)]
Big Tree Entertainment Private Limited -
Compulsorily Convertible Preference Shares
Series B of ` 1,000 each
Big Tree Entertainment Private Limited -
Compulsorily Convertible Preference Shares
Series C of ` 1,000 each
In Debentures - Unquoted, Fully paid up
Extramarks Education Private Limited - 9%
Optionally Fully Convertible Debentures of
` 10,000 each
Reliance Commercial Trading Private Limited -
Zero Coupon Secured Optionally Convertible
Redeemable Debentures - Series B of ` 1000
each
In Limited Liability Partnership
GenNext Ventures Investment Advisers LLP
[` 25,28,335; (Previous Year : ` 22,49,001;
1st April, 2015: ` 14,43,495)]
Investments measured at Amortised Cost
In Preference Shares - Unquoted, Fully
paid up
Reliance Gas Transportation Infrastructure
Limited - 9% Non Cumulative Redeemable
Preference Shares of ` 10 each
A.
Total Investment in Associates
B.
Investment in Joint Ventures
Investment measured at Cost
In Equity Shares - Unquoted, Fully paid up
Brooks Brothers India Private Limited of ` 10 each
D.E. Shaw India Securities Private Limited of
` 10 each
Diesel Fashion India Reliance Private Limited
of ` 10 each
Football Sports Development Limited of ` 10
each (` 13,45,097)
IBN Lokmat News Private Limited of ` 10 each
Iconix Lifestyle India Private Limited of ` 10
each
IMG Reliance Limited of ` 10 each
India Gas Solutions Private Limited of ` 10 each
IndiaCast Media Distribution Private Limited
of ` 10 each fully paid up
Jio Payments Bank Limited of ` 10 each
Marks and Spencer Reliance India Private
Limited (Class A Shares of ` 10 each)
Marks and Spencer Reliance India Private
Limited (Class C Shares of ` 5 each)
2
2,32,356
-
14
2
1,156
-
-
-
3,63,207
191
-
-
205
-
-
-
-
-
-
48
-
48
-
-
-
-
-
-
1,156
-
1,00,000
-
48
-
48
100
4,17,319
42
142
-
-
50,00,00,000
3,324
50,00,00,000
3,120
50,00,00,000
2,928
3,324
4,230
3,120
3,962
2,928
5,619
2,37,65,000
2,50,00,000
4,06,70,000
9,48,417
86,25,000
25,05,000
5,12,63,483
45,05,000
2,28,000
9,24,00,000
81,42,722
12
-
10
-
-
39
123
5
14
84
29
2,18,54,000
2,50,00,000
3,92,00,000
4,62,038
86,25,000
25,05,000
4,97,40,342
45,05,000
2,28,000
-
81,42,722
13
25
12
-
-
36
112
4
13
-
29
1,98,94,000
2,50,00,000
3,57,70,000
1,75,500
86,25,000
25,05,000
4,04,38,897
45,05,000
2,28,000
-
80,52,317
14
25
12
22
-
33
42
4
12
-
33
9,51,16,546
116
9,51,16,546
118
9,16,81,156
127
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 364
Particulars
Reliance Paul & Shark Fashions Private Limited
of ` 10 each
Reliance-GrandVision India Supply Private
Limited of ` 10 each
Reliance-Vision Express Private Limited of
` 10 each
Ryohin-Keikaku Reliance India Private Limited
of ` 10 each
Supreme Tradelinks Private Limited of ` 10 each
Ubona Technologies Private Limited
Viacom18 Media Private Limited of ` 10 each
fully paid up
Zegna South Asia Private Limited of ` 10 each
(Previous Year: ` 29,40,577)
In Preference Shares - Unquoted, Fully
paid up
0.10% Non Cumulative Redeemable
Preference Shares of IBN Lokmat News Private
Limited of ` 100 each
0.001% Optionally Convertible Non-
Cumulative Redeemable Preference Shares of
Viacom18 Media Private Limited of ` 10 each
[` 20,000; (Previous Year : ` 20,000;
1st April, 2015: ` 20,000)]
In Debentures or Bonds - Unquoted,
Fully paid up
IndiaCast Media Distribution Private Limited
- Zero Coupon Compulsorily Convertible
Debentures of ` 10 each
B.
Total Investment in Joint Ventures
C.
Other Investments
Investment measured at Amortised Cost
In Government Securities -
Unquoted
6 Years National Savings Certificate
(Deposited with Sales Tax Department and
Other Government Authorities)
[` 20,33,077; (Previous Year : ` 19,32,097;
1st April, 2015: ` 35,87,400)]
In Debentures or Bonds - Unquoted
Yes Bank Limited - Unsecured Redeemable
Non Convertible, Upper Tier II Bonds of
` 10,00,000 each
In Preference Shares - Unquoted, Fully
paid up
DEN Entertainment Network Private Limited
of ` 10 each
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
4
87,00,000
Units Amount
5
87,00,000
Units Amount
6
87,00,000
(` in crore)
1,35,00,000
8,70,00,000
73,50,000
10,63,545
10,821
5,68,65,124
7
17
6
1,35,00,000
8,45,00,000
-
8
20
-
1,35,00,000
8,45,00,000
-
8
25
-
3
6
1,505
10,63,545
10,821
4,77,68,791
3
5
2,220
10,63,545
10,821
4,77,68,791
1
5
2,318
2,71,49,272
1
2,46,99,272
-
2,32,29,272
2
1,981
2,623
2,689
25,05,250
13
25,05,250
11
25,05,250
4,078
-
2,000
-
2,000
13
11
1,00,00,000
10
1,00,00,000
10
1,00,00,000
10
-
10
10
10
2,004
10
2,644
10
2,709
-
-
3
3
2
2
30
25,00,000
-
-
3
3
2
2
30
25,00,000
-
-
3
3
1
1
30
25,00,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 365
Particulars
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
Units Amount
Units Amount
(` in crore)
Investment measured at Fair Value
through Other Comprehensive Income
In Government Securities - Quoted
In Equity Shares - Quoted, Fully paid up
Algae. Tec Limited of AU$ 0.1636 each
East India Hotels Limited of ` 2 each
Ksl and Industries Limited of ` 4 each
Refex Industries Limited of ` 10 each (Previous
Year: ` 20,90,000; 1st April, 2015: ` 29,89,250)
Yatra Online Inc. of $ 0.0001 each
In Equity Shares - Unquoted, Fully paid up
Ahmedabad Mega Clean Association of ` 10
each (` 1,00,000)
Delhi Stock Exchange Association Limited of
` 10 each
Ensemble Infrastructure India Limited of ` 10
each
MobileNXT Teleservices Private Limited of
` 10 each
Petronet India Limited of ` 10 each
Petronet VK Limited of ` 10 each (` 20,000)
Skorydove Systems Private Limited of ` 10
each
Ushodaya Enterprises Private Limited of ` 100
each [` 27,50,000; (Previous Year : ` 27,50,000;
1st April, 2015: ` 27,50,000)]
Yatra Online Inc. of $ 0.0001 each
Yatra Online Private Limited of ` 10 each
In Preference Shares - Unquoted, Fully
paid up
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 Debentures or Bonds - Unquoted
Tata Sons Limited
VT Media Private Limited - Unsecured Zero
Coupon Optionally Redeemable/Convertible
Debentures of ` 1,000 each
In Debentures or Bonds - Quoted
Axis Bank Limited
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
4,52,88,158
10,59,07,273
4,74,308
2,75,000
19,26,397
10,000
-
-
3,01,876
1,00,00,000
19,99,990
-
27,500
-
1,09,348
-
-
-
-
2,50,000
2,500
-
9,500
6,300
57,70,976
-
5,750
-
12
1,276
1
1
59
1,349
-
-
-
-
10
-
-
-
-
18
28
-
-
-
-
-
25
25
246
-
2,697
560
619
-
748
4,52,88,158
10,59,07,273
4,74,308
2,75,000
-
-
8,98,500
83,763
3,01,876
1,00,00,000
-
-
27,500
27,00,000
1,09,348
15,00,015
9,75,700
4,37,459
820
2,50,000
-
100
43,850
900
57,70,976
5,850
4,647
11
1,105
1
-
-
1,117
-
-
-
-
10
-
-
-
14
18
42
10
10
8
28
83
25
108
-
10
3,209
90
597
468
3,10,02,444
10,59,07,273
4,74,308
2,75,000
-
-
8,98,500
83,763
3,01,876
1,00,00,000
-
3,192
27,500
27,00,000
50,614
15,00,015
9,75,700
4,37,459
820
2,50,000
-
100
55,350
-
42,62,612
8,050
3,542
10
1,137
1
-
-
1,148
-
-
-
-
10
-
-
-
19
8
37
12
11
9
32
83
25
108
-
10
4,618
-
441
836
9,750
1,081
11,250
1,186
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 366
Particulars
National Bank for Agriculture and Rural
Development
National Highways Authority of India
National Thermal Power Corporation Limited
Oriental Bank of Commerce
Power Finance Corporation Limited
Power Grid Corporation of India Limited
Punjab National Bank
Rural Electrification Corporation Limited
Small Industries Development Bank of India
Limited
State Bank of India
Yes Bank Limited
Investments measured at Fair Value
through Profit and Loss
In Preferred Shares - Unquoted, Fully
paid up
EdCast Inc. - Series B
Netradyne Inc. - Series A
In Equity Shares - Quoted, Fully paid up
DEN Networks Limited of ` 10 each
Himachal Futuristic Communications Limited
of ` 1 each
Housing Development Finance Corporation
Limited of ` 2 each
Housing Development Finance Corporation
Limited - Warrant
State Bank of India of ` 1 each
Vascon Engineers Limited of ` 10 each
In Equity Shares - Unquoted, Fully paid up
Air Controls and Chemical Engineering
Company Limited of ` 1 each
[` 1,500; (Previous Year : ` 1,500;
1st April, 2015: ` 1,500)]
Airhop Corporation Inc. @ $ 0.0001 per share
Airspan Networks Inc. @ $1,000 per share
Ecorithim Inc.
Eshwar Land Private Limited of ` 10 each
National Stock Exchange of India Limited of
` 10 each
Reliance Research and Development Services
Private Limited of ` 10 each
[Previous Year : ` 15,000;
1st April, 2015: ` 15,000]
Retailers Association’s Skill Council of India of
` 10 each [` 50,000; (Previous Year : ` 50,000;
1st April, 2015: ` 50,000)]
Shinano Retail Private Limited of ` 10 each
(1st April, 2015: ` 25,00,000)
Sonali Land Private Limited of ` 10 each
[` 4,000; (Previous Year : ` 4,000;
1st April, 2015: ` 4,000)]
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
851
15,09,485
Units Amount
4,237
16,24,821
Units Amount
-
-
(` in crore)
39,44,752
9,29,946
4,000
42,71,793
-
2,500
25,05,720
-
-
1,000
425
104
413
461
-
246
285
-
-
100
7,755
39,44,752
9,29,946
-
43,05,143
980
-
25,14,520
2,500
417
101
-
3,828
102
-
1,171
251
39,44,752
9,49,946
-
42,79,543
950
-
12,100
-
417
104
-
1,242
99
-
1,230
-
-
-
-
-
15,562
950
-
96
-
10,279
2,34,302
75,37,854
19,48,680
4,85,32,764
8,63,217
35,47,800
-
11,61,240
1,000
9,79,036
10,000
-
400
9,35,000
-
5,000
-
400
5
53
58
16
62
130
62
-
4
274
-
7
68
-
80
34
-
-
-
-
-
-
-
19,48,680
4,85,32,764
17
79
19,48,680
4,85,32,764
-
-
-
23
65
27,71,717
306
36,58,400
481
35,47,800
17,42,720
11,61,240
1,000
4,89,518
10,000
-
400
85,000
1,500
5,000
-
400
49
34
3
488
-
3
66
-
80
28
-
-
-
-
-
22,32,720
-
1,000
-
10,000
-
400
85,000
1,500
5,000
2,53,800
400
-
60
-
629
-
-
32
-
80
28
-
-
-
-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 367
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Units Amount
-
-
Units Amount
-
-
Units Amount
-
1,800
(` in crore)
44,54,799
25
44,54,799
25
105
-
294
2,025
466
-
102
-
279
-
-
466
-
-
-
-
-
-
-
-
-
46,57,00,000
466
466
-
-
1,250
125
5,000
50
44,54,799
25
-
-
97
-
237
-
-
-
-
22,505
233
-
-
-
-
1,500
-
148
-
-
2,250
-
262
-
2,250
-
239
-
-
3,000
360
3,000
328
1,500
-
-
-
79,55,94,237
23,02,53,577
-
1,14,50,00,000
98,73,00,00
-
32,00,00,000
149
-
297
-
-
947
281
-
1,274
1,152
-
379
-
1,252
3,00,00,000
1,17,72,377
99,16,10,709
40,07,31,150
-
1,14,50,00,000
1,82,08,56,950
2,50,00,000
39,00,00,000
-
115
912
36
14
1,093
452
-
1,161
2,022
30
425
-
1,252
-
1,50,75,101
27,98,82,769
19,01,55,380
20,93,53,761
3,50,00,000
77,12,14,635
3,79,28,740
22,78,25,006
50,30,56,080
597
63,67,31,022
707
5,45,14,579
-
106
906
-
15
280
190
209
35
771
38
228
55
Particulars
Teesta Retail Private Limited of ` 10 each
(1st April, 2015: ` 18,000)
TerraPower LLC
The Colaba Central Co-operative Consumer's
Wholesale and Retail Stores Limited (Sahakari
Bhandar) of ` 200 each [` 5,000; (Previous
Year: ` 5,000; 1st April, 2015: ` 5,000)]
In Preference Shares - Unquoted, Fully
paid up
Teesta Retail Private Limited - 6% Non
Cumulative Optionally Convertible Preference
Shares of ` 10 each
In Debentures or Bonds - Unquoted
Teesta Retail Private Limited - Unsecured
Zero Coupon Optionally Fully Convertible
Debentures of ` 10 each
In Debentures or Bonds - Quoted
Citicorp Finance (India) Limited - 0% Secured
Redeemable Non Convertible Debentures
Series 534 of ` 10,00,000 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
Corporation Bank
HDB Financial Services Limited - 0% Secured
Redeemable Non Convertible Debentures of
` 10,00,000 each
Indiabulls Housing Finance Limited - 10.60%
Secured Redeemable Non Convertible
Debentures of ` 10,00,000 each
IndusInd Bank Limited
Kotak Mahindra Prime Limited - 0% Secured
Redeemable Non Convertible Debentures of
` 10,00,000 each
In Fixed Maturity Plan - Quoted, Fully
paid up
Axis Mutual Fund
Baroda Pioneer Mutual Fund
Birla Sunlife Mutual Fund
DHFL Pramerica Mutual Fund
DSP Blackrock Mutual Fund
HDFC Mutual Fund
ICICI Prudential Mutual Fund
IDFC Mutual Fund
Invesco Mutual Fund (Formerly know as
Religare Mutual Fund)
Kotak Mahindra Mutual Fund
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 368
Particulars
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
(` in crore)
L&T Mutual Fund
LIC Nomura Mutual Fund
Reliance Mutual Fund
SBI Mutual Fund
Sundaram Mutual Fund
Tata Mutual Fund
UTI Mutual Fund
In Others
DSP Blackrock India Enhanced Equity Fund
Faering Capital India Evolving Fund of ` 1,000
each
GenNext Ventures Fund - Class A units of ` 10
each
HDFC India Real Estate of ` 1,000 Per Unit
JM Financial Property Fund - I of ` 5,534 each
(Previous Year: ` 5,961 each; 1st April, 2015:
` 6,433 each)
KKR India Debt Fund I of ` 1,000 each
LICHFL Urban Development Fund of ` 10,000
each ` 7,346 paid up (Previous Year: ` 7,848
each; 1st April, 2015: ` 3,145 each)
MPM Bioventure IV-QP, LP, USA
Multiples Private Equity Fund - Scheme 1 of
` 1,00,000 each, ` 64,564 each paid up
(Previous Year: ` 68,219 each paid up; 1st April,
2015: ` 62,297 each paid up)
Multiples Private Equity Fund II LLP
Peninsula Realty Fund of ` 1,00,000 each
Urban Infrastructure Opportunities Fund of
` 60,430 per unit (Previous Year: ` 79,930 each;
1st April, 2015: ` 86,160 each)
3one4 Capital Fund Scheme II of ` 1,00,000
each, ` 10,000 paid up
Total Other Investments
C.
Total Non - Current Investments (A+B+C)
1,82,72,349
-
1,10,57,47,746
71,80,00,000
27,00,00,000
8,50,15,846
66,50,00,000
Units Amount
24
-
1,263
822
308
111
764
7,922
4,32,72,349
5,50,00,000
1,49,60,99,239
1,16,19,16,665
27,00,00,000
8,50,15,846
83,09,64,579
Units Amount
52
63
1,603
1,277
282
102
887
10,206
-
3,00,00,000
32,99,25,439
23,93,60,369
-
2,74,08,274
27,37,96,672
Units Amount
-
30
330
239
-
27
274
2,721
30,00,000
21,86,107
5,62,56,805
88,880
50,000
21,40,944
25,000
5,000
5,15,105
1,526
21,600
2,000
37
248
56
8
24
267
16
89
39
52
11
83
2
20,00,000
26,66,290
4,01,28,946
92,435
50,000
30,00,000
25,000
5,000
2,08,000
1,931
21,600
20
267
40
11
30
312
21
94
35
19
22
175
10,00,000
27,10,745
1,48,49,960
2,73,770
50,000
26,82,000
25,000
5,000
-
2,000
21,600
10
271
15
28
32
274
9
96
31
-
25
189
-
-
-
-
932
19,405
25,639
1,046
34,906
41,512
980
20,623
28,951
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 2.1 Category-wise Non Current Investment
Financial Assets measured at Cost
Financial Assets carried at Amortised Cost
Financial Assets measured at Fair Value through Other
Comprehensive Income
Financial Assets measured at Fair Value through
Profit and Loss
Total Non Current Investment
3.
LOANS (Unsecured and Considered Good)
Deposits with Related Parties (Refer Note No. 30)
Loans and Advances to Related Parties (Refer Note No. 30)
Other Loans and Advances*
Total
*
Includes primarily effect of fair valuation of interest free deposits
4.
OTHER NON-CURRENT ASSETS
(Unsecured and Considered Good)
Capital Advances
Security Deposits#
Advances Income Tax (Net of Provision)
Others
Total
#
Includes Deposits given to Related Parties of ` 507 crore (Previous Year ` 507 crore)
5.
INVENTORIES
Raw Materials (Including Material In Transit)
Work-in-Progress
Finished Goods
Stores and Spares
Stock-in-Trade
Others
Total
369
(` in crore)
As at
1st April, 2015
5,400
2,932
15,146
5,473
28,951
(` in crore)
As at
1st April, 2015
737
18
1,509
2,264
As at
31st March, 2017
2,910
3,329
9,157
As at
31st March, 2016
3,486
3,125
21,504
10,243
25,639
13,397
41,512
As at
31st March, 2017
As at
31st March, 2016
618
1
2,089
2,708
784
156
1,092
2,032
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
3,985
2,172
1,746
376
8,279
10,539
1,958
1,223
341
14,061
11,776
1,788
1,063
1,551
16,178
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
16,412
11,426
11,253
3,964
5,896
4,509
53,460
14,492
9,075
9,255
3,462
6,278
3,924
46,486
19,863
10,914
11,299
3,049
4,956
3,163
53,244
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
370
As at 31st March, 2017
Units Amount
As at 31st March, 2016
Units Amount
As at 1st April, 2015
Units Amount
(` in crore)
6.
CURRENT INVESTMENTS
Investment measured at Amortised Cost
Collateral Borrowing and Lending Obligation
- Unquoted
Investment measured at Fair Value through
Other Comprehensive Income
In Debentures or Bonds - Quoted, Fully paid up
Housing Development Finance Corporation Limited
Infrastructure Development Finance Company
Limited
Power Grid Corporation of India Limited
Rural Electrification Corporation Limited
In Debentures or Bonds - Unquoted, Fully paid up
Tata Sons Limited
-
-
-
-
-
In Mutual Fund - Quoted
Canara Robeco Mutual Fund [` 30,77,925; (Previous
Year : ` 28,06,950; 1st April, 2015: ` 26,68,225)]
Franklin Templeton Mutual Fund
HDFC Mutual Fund
IDFC Mutual Fund
Sundaram Mutual Fund
2,50,000
-
48,46,69,171
-
-
In Mutual Fund - Unquoted
Axis Mutual Fund
Birla Sunlife Mutual Fund
DHFL Pramerica Mutual Fund
DSP Blackrock Mutual Fund
Franklin Templeton Mutual Fund
HDFC Mutual Fund
ICICI Prudential Mutual Fund
IDBI Mutual Fund
IDFC Mutual Fund
Indiabulls Mutual Fund
Invesco Mutual Fund (Formerly know as Religare
Mutual Fund)
JM Financial Mutual Fund
JP Morgan Mutual fund
Kotak Mahindra Mutual Fund
L I C Nomura Mutual fund
L&T Mutual Fund
Reliance Mutual Fund
SBI Mutual Fund
Sundaram Mutual fund
Tata Mutual fund
UTI Mutual Fund
47,11,06,416
79,16,98,011
42,04,44,404
10,19,08,846
-
1,99,70,78,642
3,24,46,75,382
-
1,79,15,74,045
-
31,44,283
-
-
39,03,49,468
-
35,48,12,327
3,25,06,60,654
45,15,37,935
12,50,80,733
57,52,39,255
94,34,73,340
-
-
-
-
-
-
-
-
-
-
-
605
-
-
605
3,517
1,000
-
50
-
2,50,000
-
48,46,69,171
-
-
-
-
800
95
-
5
900
-
-
-
100
100
495
-
3
-
498
216
216
4,850
-
20
-
2,150
2,50,000
-
-
66,34,34,176
550 3,21,11,51,755
96,41,00,960
6,85,74,208
-
-
550
1,417
3,822
1,205
75
6,519
241
6,675
627
843
-
969
3,745
200
1,262
-
415
285
202
952
399
466
3,700
1,103
632
479
2,351
25,546
32,779
636
828
141
-
43,07,32,136
2,227 1,46,19,24,195
46,29,44,484
13,27,46,938
2,15,42,067
2,696 1,74,66,09,455
4,108 3,14,03,88,295
-
2,179 2,55,89,69,249
6,74,35,163
41,81,745
-
598
-
-
-
876
-
442
24,22,28,910
-
35,75,78,239
-
41,31,50,203
4,005 2,93,95,30,183
47,97,91,326
57,48,55,030
57,52,39,255
95,15,58,881
853
154
949
1,621
22,313
22,918
512
20,05,73,402
3,594 3,56,86,60,990
13,86,83,159
1,091
28,23,96,273
168
26
-
2,224
57,02,90,340
3,593 3,37,79,73,042
13,37,083
95,16,34,429
-
23,56,533
-
3,305
87
699
309
-
766
-
566
24,22,28,910
13,99,57,033
48,42,43,154
4,83,83,953
35,83,46,129
3,326 3,23,10,83,691
62,44,11,092
57,48,55,030
34,20,77,650
1,488 1,26,11,83,028
831
684
869
24,138
25,588
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 371
(` in crore)
As at 31st March, 2017
Units Amount
As at 31st March, 2016
Units Amount
As at 1st April, 2015
Units Amount
Investments measured at Fair Value through
Profit and Loss
In Government Securities - Quoted *
In Equity Shares - Quoted, Fully paid up
DEN Networks Limited of ` 10 each
6,98,288
In Debentures or Bonds - Quoted, Fully paid up
Andhra Bank
Bank of India
Housing Development Finance Corporation Limited
ICICI Bank
IDFC Bank Limited (Formerly known as
Infrastructure Development Finance Company
Limited)
Indian Railway Finance Corporation Limited
LIC Housing Finance Limited
National Bank for Agriculture and Rural
Development
National Highways Authority of India
National Thermal Power Company Limited
Oriental Bank of Commerce
Power Finance Corporation Limited
Power Grid Corporation of India Limited
Punjab National Bank
Rural Electrification Corporation Limited
State Bank Of India
Yes Bank Limited
In Treasury Bills - Quoted
In Commercial Paper - Unquoted
Small Industries Development Bank of India Limited
In Certificate of Deposits - Unquoted
Andhra Bank
Axis Bank Limited
Canara Bank
Corporation Bank
IDBI Bank
Indian Bank
Oriental Bank of Commerce
297
1,000
1,310
1,000
250
400
1,750
-
3,00,650
23
1,000
2,150
-
1,500
-
-
1,050
-
-
-
-
-
-
-
1,293
6
6
31
99
1,442
100
25
42
178
-
104
2
103
215
-
148
-
-
105
2,594
2,272
-
-
-
-
-
-
-
-
-
-
3,666
6
6
-
-
1,294
-
8
76
201
278
343
-
-
739
219
-
192
-
-
3,350
-
-
-
-
208
197
463
1,397
-
-
2,265
6,98,288
-
-
6,500
-
75
7,50,000
2,000
2,750
33,12,714
-
-
7,300
2,100
-
1,900
-
-
-
208
197
463
1,387
-
-
6,98,288
-
-
-
-
-
-
-
-
-
-
-
6,950
-
-
150
23,957
-
645
-
2,624
-
461
969
736
In Fixed Maturity Plan - Quoted, Fully Paid Up
Axis Mutual Fund
Baroda Pioneer Mutual Fund
Birla Sunlife Mutual Fund
DHFL Pramerica Mutual Fund
3,00,00,000
1,17,72,377
21,87,87,837
17,04,77,572
39
15
276
212
-
1,50,75,101
14,98,82,768
-
-
18
182
-
25,90,00,000
6,00,00,000
64,10,00,000
36,80,00,000
4,372
8
8
-
-
-
-
-
-
-
-
-
-
-
699
-
-
15
147
-
861
3
231
231
646
-
2,632
-
462
971
739
5,450
259
60
641
368
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 372
DSP Blackrock Mutual Fund
HDFC Mutual Fund
HSBC Mutual Fund
ICICI Prudential Mutual Fund
IDFC Mutual Fund
Invesco Mutual Fund (Formerly know as Religare
Mutual Fund)
JP Morgan Mutual fund
Kotak Mahindra Mutual Fund
L & T Mutual Fund
LIC Nomura Mutual fund
Principal PNB Mutual Fund
Reliance Mutual Fund
SBI Mutual Fund
Sundaram Mutual Fund
TATA Mutual fund
UTI Mutual Fund
In Mutual Fund- Quoted
ICICI Prudential Mutual Fund
Kotak Mahindra Mutual Fund
Sundaram Mutual Fund
In Mutual Fund- Unquoted
Axis Mutual Fund
Baroda Pioneer Mutual Fund
Birla Sunlife Mutual Fund
DHFL Pramerica Mutual Fund
DSP Blackrock Mutual Fund
Edelweiss Mutual Fund
HDFC Mutual Fund
ICICI Prudential Mutual Fund
IDFC Mutual Fund
Indiabulls Mutual Fund
Invesco Mutual Fund (Formerly know as Religare
Mutual Fund)
JM Financial Mutual Fund
Kotak Mahindra Mutual Fund
L & T Mutual Fund
Reliance Mutual Fund
SBI Mutual Fund
Sundaram Mutual Fund
Tata Liquid Fund [` 2,09,931; (Previous Year :
` 9,53,985; 1st April, 2015: ` 8,82,902)]
UTI Mutual Fund
Total Current Investments
*
Includes ` 595 crore (Previous Year ` 2,285 crore) given as collateral security.
As at 31st March, 2017
Units Amount
272
-
-
1,172
-
86
20,93,53,761
-
-
92,87,16,328
-
7,00,00,000
As at 31st March, 2016
Units Amount
252
55
-
156
189
28
20,93,53,761
4,56,47,510
-
12,92,24,635
14,75,09,537
2,28,25,006
(` in crore)
As at 1st April, 2015
Units Amount
155
846
60
897
401
70
15,50,00,000
84,56,47,510
6,00,00,000
89,48,46,064
40,09,22,280
7,00,00,000
-
24,81,89,521
2,50,00,000
5,62,49,204
-
39,03,51,492
44,39,16,666
-
-
16,59,64,579
1,66,50,000
5,70,000
-
54,91,20,567
-
80,46,77,508
9,40,86,642
37,40,91,486
23,91,85,878
1,34,16,37,597
1,19,15,36,518
1,42,78,05,347
7,53,48,014
5,81,30,023
-
84,73,13,658
20,05,53,753
1,30,83,95,051
53,53,95,960
11,70,01,509
70
55,37,82,528
-
322
32
71
-
488
568
-
-
206
3,759
156
52
-
208
948
-
3,130
100
860
251
1,924
2,368
2,009
80
405
-
2,402
294
2,423
1,123
341
-
1,043
19,701
29,833
52,751
-
11,45,14,578
-
3,21,69,789
-
-
15,03,60,369
-
2,74,08,274
2,28,32,093
1,66,50,000
5,70,000
-
6,59,60,044
7,83,14,262
19,98,33,489
10,09,60,780
-
9,65,71,057
49,84,63,997
67,15,86,887
55,38,94,835
13,12,04,305
11,45,61,254
20,94,33,717
70,96,87,310
4,92,02,764
65,83,32,128
24,72,06,187
-
342
8,00,48,849
-
138
-
41
-
-
183
-
34
28
1,304
133
45
-
178
70
128
220
106
-
100
534
943
802
150
149
235
1,265
51
742
522
-
-
129
6,146
16,915
42,503
10,50,00,000
40,00,00,000
19,50,00,000
18,28,13,373
2,50,00,000
30,00,00,000
64,50,00,000
8,80,00,000
17,00,00,000
13,50,00,000
1,66,50,000
5,70,000
4,43,27,649
-
-
8,36,75,211
2,43,52,942
-
-
1,39,46,182
26,83,74,966
50,05,34,341
-
9,92,35,165
20,94,33,717
20,52,03,232
2,00,00,000
9,52,48,074
5,16,66,198
-
342
105
400
195
184
25
300
645
88
170
135
6,004
144
49
51
244
-
-
126
25
-
-
38
495
652
-
123
220
316
20
100
254
-
-
-
-
2,369
19,542
52,421
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 6.1 Category-wise Current Investment
Financial Assets carried at Amortised Cost
Financial Assets measured at Fair Value through Other
Comprehensive Income
Financial Assets measured at Fair Value through
Profit and Loss
Total Current Investment
As at
31st March, 2017
-
22,918
As at
31st March, 2016
-
25,588
29,833
52,751
16,915
42,503
As at
31st March, 2017
As at
31st March, 2016
373
(` in crore)
As at
1st April, 2015
100
32,779
19,542
52,421
(` in crore)
As at
1st April, 2015
7.
TRADE RECEIVABLES
(Unsecured and Considered Good)
Trade Receivables
Total
8.
CASH AND CASH EQUIVALENTS
Cash on Hand
Balances with Bank *
Cash and Cash Equivalents as per Balance Sheet
Cash and Cash Equivalent as per Consolidated Statement of
Cash Flows including Deposits#
8,177
8,177
4,465
4,465
4,902
4,902
As at
31st March, 2017
As at
31st March, 2016
113
2,910
3,023
3,023
55
10,973
11,028
11,028
(` in crore)
As at
1st April, 2015
49
12,308
12,357
12,357
*
i.
ii.
Includes towards Unclaimed Dividend of ` 241 crore (Previous Year ` 223 crore).
Includes deposits of ` 32 crore (Previous Year ` 526 crore) with maturity of more than 12 months and fixed deposit of ` 1,699 crore (Previous Year ` 666
crore) pledged as collateral securities.
iii.
#Deposits of ` 34 crore (Previous Year ` 5 crore) are given as lien against Short Term Borrowings.
8.1
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.
8.2 Refer Note No. 40 for details of Specified Bank Notes (SBN) held and transacted during the period 08/11/2016 to 30/12/2016.
9.
LOANS
(Unsecured and Considered Good)
Loans and Advances to related parties (Refer Note No. 30)
Others
Total
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
-
996
996
3
838
841
3
439
442
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
374
10. OTHER FINANCIAL ASSETS
Interest Accrued on Investment
Deposits
Others*
Total
*
Includes fair valuation of derivatives.
As at
31st March, 2017
As at
31st March, 2016
360
2,161
6,014
8,535
936
2,140
3,041
6,117
(` in crore)
As at
1st April, 2015
631
1,728
3,351
5,710
11.
TAXATION
Income Tax recognised in Statement of Profit and Loss
Current Tax
Deferred Tax
Total income Tax expenses
The income Tax expenses for the year can be reconciled to the accounting profit as follows:
Profit Before Tax
Applicable Tax Rate
Computed Tax Expense
Tax effect of :
Exempted Income
Expenses Disallowed
Additional Allowances net of MAT Credit
Non Taxable Subsidiaries and effect of Differential Tax Rate under various jurisdiction
Carried Forward Losses Utilised
Others
Current Tax Provision (A)
Incremental Deferred Tax Liability on account of Tangible and Intangible Assets
Incremental Deferred Tax Liability on account of Financial Assets and Other Items
Deferred Tax Provision (B)
Tax Expenses recognised in Statement of Profit and Loss (A+B)
Effective Tax Rate
Year Ended
31st March, 2017
(` in crore)
Year Ended
31st March, 2016
8,880
1,321
10,201
8,042
834
8,876
Year Ended
31st March, 2017
40,034
34.608%
13,855
(` in crore)
Year Ended
31st March, 2016
38,737
34.608%
13,406
(3,110)
3,270
(6,078)
1,176
(230)
(3)
8,880
1,281
40
1,321
10,201
25.48%
(5,228)
3,542
(2,833)
(699)
(139)
(7)
8,042
796
38
834
8,876
22.91%
Advance Income Tax (Net of Provision)
At start of the year
Charge for the year
Others#
Tax paid during the year
At end of year
#
Mainly pertains to Provision for Tax on Other Comprehensive Income
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
1,133
(8,880)
(601)
10,083
1,735
833
(8,042)
(240)
8,582
1,133
833
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
375
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
16,802
3,069
19,871
11,169
5,176
16,345
5,679
2,794
8,473
12. OTHER CURRENT ASSETS
(Unsecured and Considered Good)
Balance with Customs and Central Excise Authorities
Others*
Total
*
Includes primarily prepaid expenses and claims receivables.
13.
SHARE CAPITAL
Authorised Share Capital:
Equity Shares of ` 10 each
Preference Shares of ` 10 each
500,00,00,000
100,00,00,000
5,000 500,00,00,000
1,000 100,00,00,000
6,000
5,000 500,00,00,000
1,000 100,00,00,000
6,000
5,000
1,000
6,000
Issued, Subscribed and Paid up:
Equity Shares of ` 10 each fully paid up
Less: Calls in arrears - by others
[` 2,303 (Previous Year March 31, 2016
` 2,303 and April 01, 2015 ` 3,113)]
Total
13.1
13.2
13.3
Shares allotted on conversion / surrender
of Debentures and Bonds, conversion of
Term Loans, exercise of Warrants, against
Global Depository Shares (GDS) and
re-issue of Forfeited Equity Shares, since
inception.
Shares held by Associates
Shares bought back and extinguished in
the last five years.
2,95,89,24,277
2,959 2,94,80,21,694
2,948 2,94,33,34,138
2,943
-
2,959
-
2,948
-
2,943
As at
31st March, 2017
45,04,27,345
As at
31st March, 2016
45,04,27,345
As at
1st April, 2015
45,04,27,345
1,72,000
4,25,82,849
1,72,000
4,62,46,280
1,72,000
4,62,46,280
13.4 The reconciliation of the number of shares outstanding is set out below :
Equity Shares at the beginning of the year
Add: Shares issued on exercise of employee stock options
Add: Shares sold by subsidiaries
Equity Shares at the end of the year
As at
31st March, 2017
2,94,80,21,694
1,09,01,779
804
2,95,89,24,277
As at
31st March, 2016
2,94,33,34,138
46,87,556
-
2,94,80,21,694
As at
1st April, 2015
2,94,33,34,138
13.5 Share Options granted under the Company’s Employee Share Option Plan:
The Company has reserved issuance of 11,11,28,872 (Previous year 12,20,30,651) 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 74,454 options at a price of ` 1,096 per option, plus all applicable taxes, as may be levied in this regard
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
376
on the Company (Previous year 14,967 options at a price of ` 887 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. (Refer Note No. 26.3 for detailed disclosure on Share Based Payments).
13.6 Issued, Subscribed and Paid Up Capital excludes 29,23,53,823 (Previous Year 29,23,54,627) equity shares directly held by
subsidiaries/trust, before their becoming subsidiaries of the Company, which have been eliminated.
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
14. OTHER EQUITY
Revaluation Reserve
Add: On Revaluation
Less: Transferred to / (from) Non Controlling Interest
Capital Reserve
As per last Balance sheet
Add: Transfer to Goodwill on Consolidation
Less : Transferred to Retained Earnings
Capital Redemption Reserve
Add: Transferred from Retained Earnings on
redemption of shares
Share Application Money Pending Allotment
As per last Balance sheet
Issue of Shares / Application Money Received
Share Based Payments Reserve
As per last Balance Sheet
On Employee Stock Options
Securities Premium Reserve
As per last Balance Sheet
Add : On issue of shares/ others
Less: Calls in arrears - by others
[` 1,03,189 (Previous Year ` 1,03,189)]
Debenture Redemption Reserve
As per last Balance Sheet
Add: Transferred from Retained Earnings
Statutory Reserve
As per last Balance Sheet
Add: Transferred from Retained Earnings
835
46
881
11
291
-
291
-
96
-
8
(4)
18
(2)
42,983
641
43,624
-
1,120
-
182
66
827
10
837
2
870
835
827
371
759
1,130
839
291
291
371
96
4
16
95
1
17
(9)
20
(2)
42,691
292
42,983
-
96
8
18
95
17
20
43,624
42,983
42,691
1,117
3
1,120
1,120
1,117
147
35
248
182
147
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
377
General Reserve
As per last Balance Sheet
Add: Transferred from Retained Earnings
1,75,214
24,790
1,53,214
22,000
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
Share in Reserves of Associates
As per last Balance Sheet
Retained Earnings
As per last Balance Sheet
Add: Profit for the year
Add: Transferred from Capital Reserve Account
Add: On account of Amalgamation / Disposal of
Subsidiaries
Less : Appropriations
Transferred to Statutory Reserve
Transferred to General Reserve
Transferred to Capital Redemption Reserve
Transferred to Debenture Redemption Reserve
Dividend on Equity Shares [Dividend per Share ` Nil
(Previous Year ` 10.00)]
Interim Dividend on Equity Shares [Dividend per
Share ` Nil (Previous Year ` 10.50)]
Tax on Dividend
Other Comprehensive Income (OCI)*
As per last Balance Sheet
Add: Movement in OCI (Net) during the year
Total
4,480
29,901
-
(252)
34,129
66
24,790
-
-
-
-
-
3,371
1,823
2,00,004
1,75,214
1,53,214
10
10
10
3,259
29,745
839
(65)
33,778
35
22,000
1
3
2,944
3,095
1,220
9,273
4,480
3,259
4,009
(638)
5,194
2,60,750
3,371
2,28,608
4,009
2,05,777
*
Includes net movement in Foreign Currency Translation Reserve
14.1 Share Application Money Pending Allotment represents application money received on account of Employees Stock Option Scheme.
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 378
As at 31st March, 2017 As at 31st March, 2016
Non-Current
Current Non-Current
Current Non-Current
Current
(` in crore)
As at 1st April, 2015
15. BORROWINGS
Secured - At Amortised Cost
Non Convertible Debentures
Term Loan - from Banks
Term Loan – from Others
Long Term Maturities of Finance Lease Obligations
Unsecured - At Amortised Cost
Bonds/Debentures
Term Loans - from Banks
Term Loans – from Others
Total
13,503
5,394
-
-
18,897
133
171
-
2
306
8,637
2,208
-
-
10,845
133
5
-
11
149
1,270
4,559
1,501
9
7,339
164
-
-
14
178
51,234
80,489
1,528
1,33,251
1,52,148
3,860
8,358
401
12,619
12,925
49,312
80,217
1,273
130,802
1,41,647
2,974
12,053
297
15,324
15,473
45,999
66,629
486
1,13,114
1,20,453
825
11,254
-
12,079
12,257
15.1 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.
` 266 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.
` 12,500 crore are secured by hypothecation of movable properties of the subsidiary Company -’Reliance Jio Infocomm
Limited’ except telecom licenses and spectrum.
15.2 Secured Term Loans from Banks referred above to the extent of :
a)
b)
` 5,559 crore are secured by way of mortgage/ hypothecation of movable, immovable properties and current assets.
` 6 crore are secured by way of hypothecation of vehicles and are repayable over a period of two to five years.
15.3 Finance Lease Obligations are secured against Leased Assets.
16. OTHER FINANCIAL LIABILITIES
Others*
Total
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
9,025
9,025
2,249
2,249
1,548
1,548
*
Includes Interest Accrued but not due on Deferred Payment Liabilities, Creditors for Capital Expenditure, Premium payable on Forward Contracts.
17. PROVISIONS - NON CURRENT
Provisions for Annuities
Provision for decommissioning of Assets
Total
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
14
2,337
2,351
22
1,209
1,231
16
995
1,011
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
18. DEFERRED TAX LIABILITIES (NET)
The movement on the deferred tax account is as follows:
At the start of the year
Charge/(Credit) to Statement of Profit and Loss (Refer Note No. 11)
Others (including exchange difference)
At the end of the year
Component of Deferred Tax Liabilities / (Assets):
As at
31st March, 2017
20,494
1,321
(617)
21,198
As at
31st March, 2016
19,204
834
456
20,494
As at
31st March, 2016
Charge/(Credit)
to Statement of
Profit and Loss
Others
(Including
Exchange
Difference)
379
(` in crore)
As at
1st April, 2015
19,204
(` in crore)
As at
31st March, 2017
Deferred Tax Liabilities / (Assets) in relation to:
Property, Plant and Equipment
Financial Assets
Loan and Advances
Provisions
Disallowances
Carried Forward Loss
Others
19. BORROWINGS- CURRENT
Secured - At Amortised Cost
Working Capital Loans
From Banks
Foreign Currency Loans
Rupee Loans
From Others
Rupee Loans
Unsecured - At Amortised Cost
Other Loans and Advances
From Banks
Foreign Currency Loans
Rupee Loans
From Others
Rupee Loans
Loans from Related Parties (Refer Note No. 30)
Total
21,929
326
(10)
(433)
(239)
(1,535)
456
20,494
1,281
381
(11)
(374)
1
155
(112)
1,321
(386)
-
-
-
(125)
(106)
-
(617)
22,824
707
(21)
(807)
(363)
(1,486)
344
21,198
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
6,176
3,657
9,833
-
14,411
6,041
20,452
1,175
68
31,528
75
2,776
2,851
1,649
16,018
2,561
18,579
400
66
23,545
843
2,038
2,881
-
24,348
150
24,498
200
63
27,642
19.1 a)
Working Capital Loans from Banks of ` 9,473 crore (Previous Year ` 2,049 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 machin-
ery), book debts, outstanding monies, receivables, claims, bills, materials in transit, etc. save and except receivables of Oil
and Gas Segment.
b)
c)
d)
` 20 crore (Previous Year ` 728 crore) are secured by way of first charge on all the Current Assets.
` Nil (Previous Year ` 74 crore) is secured by hypothecation of Plant and Machinery.
` 340 crore (Previous Year ` Nil) line of credit is secured by guarantee given by the holding company.
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
380
19.2 Working Capital Loans from Others of ` Nil (Previous Year ` 1,649 crore) are secured by way of lien on Government Securities.
20.
TRADE PAYABLES
Micro, Small and Medium Enterprises
Others
Total
As at
31st March, 2017
267
76,328
76,595
As at
31st March, 2016
236
60,060
60,296
(` in crore)
As at
1st April, 2015
147
58,401
58,548
20.1 There are no amounts outstanding to Micro, Small and Medium Enterprises as at March 31, 2017 and no amount were over due during the
year for which disclosure requirements under Micro, Small and Medium Enterprises Development Act, 2006 are applicable.
21. OTHER FINANCIAL LIABILITIES
Current maturities of Long Term Debt
Current maturities of Finance Lease Obligations
(Refer Note No. 15)
Current maturities of Deferred Payment Liabilities
Interest accrued but not due on Borrowings
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, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
12,923
2
12,925
739
2,452
241
1
3
1
88,181
1,04,543
15,462
11
15,473
739
1,981
223
1
4
1
71,111
89,533
12,243
14
12,257
3
927
199
1
2
1
29,520
42,910
*
#
These figures do not include any amounts due and outstanding, to be credited to Investor Education and Protection Fund except ` 20 crore (Previous Year ` 17
crore) which is held in abeyance due to legal cases pending.
Includes Security Deposit, Creditors for Capital Expenditure and Financial Liabilities at fair value.
22. OTHER CURRENT LIABILITIES
Other Payables^
Total
^
Includes statutory dues and advances from customers.
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
20,882
20,882
10,005
10,005
3,415
3,415
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
381
23. PROVISIONS - CURRENT
Provisions for Employee Benefits (Refer Note No. 26.1)*
Provision for Income Tax (Net of Advance Tax)
Provision for Wealth Tax
Other Provisions #
Total
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
397
11
77
1,284
1,769
426
90
77
1,182
1,775
349
230
77
1,210
1,866
*
#
Includes annual leave and vested long service leave entitlement accrued and compensation claims made by employees.
Includes primarily Provision for Customs Duty, Excise Duty on Finished Goods and Other Duties and Taxes.
24. OTHER INCOME
Interest
Bank Deposits
Debt instruments
Other Financial Assets carried at Amortised Cost
Others
Dividend Income
Gain on Financial Assets
Realised Gain
Unrealised Gain
Profit on De-subsidiarisation of Subsidiary
Other Non Operating Income
Exceptional Item^
Total
2016-17
2015-16
(` in crore)
392
2,263
246
84
3,768
1,642
742
2,195
232
75
1,847
1,002
3,244
732
2,849
43
611
4,574
12,053
2,985
345
5,410
-
703
-
9,443
^
Exceptional item represents the impact of the transaction 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 ` 4,574 crore (net of taxes).
25. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE
2016-17
2015-16
(` in crore)
Inventories (at close)
Finished Goods / Stock-in-Trade
Work-in-Progress
Inventories (at commencement)
Finished Goods / Stock-in-Trade
Work-in-Progress
Less: Capitalised during the year
Add: Opening Stock of Subsidiaries acquired during the year
Less: Consideration of Land surrendered to HSIIDC, Reversal /
Recovery of Annuity on HSIIDC Surrendered Land
Total
28,575
17,149
11,426
15,533
9,075
24,608
1,273
22
-
15,533
9,075
16,255
10,914
27,169
-
-
1
24,608
23,357
(5,218)
27,168
2,560
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 382
26. EMPLOYEE BENEFITS EXPENSE
Salaries and Wages
Contribution to Provident and Other Funds
Staff Welfare Expenses
Total
2016-17
7,233
506
649
8,388
26.1 As per Indian Accounting Standard 19 - “Employee Benefits”, the disclosures as defined are given below:
Defined Contribution Plan
Contribution to Defined Contribution Plan, recognised as expense for the year is as under :
Employer’s Contribution to Provident Fund
Employer’s Contribution to Superannuation Fund
Employer’s Contribution to Pension Scheme
Defined Benefit Plan
I)
Reconciliation of opening and closing balances of Defined Benefit Obligation
2016-17
265
17
137
(` in crore)
2015-16
6,449
443
515
7,407
(` in crore)
2015-16
220
16
110
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
Gratuity
(Funded)
2016-17
865
7
80
69
(9)
(63)
949
2015-16
775
7
65
62
19
(63)
865
II)
Reconciliation of opening and closing balances of Fair Value of Plan Assets
Fair Value of Plan Assets at beginning of the 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
(` in crore)
Gratuity
(Unfunded)
2016-17
31
-
18
3
(21)
(3)
28
Gratuity
(Funded)
2016-17
849
7
69
1
64
(61)
929
61
2015-16
22
-
11
2
(1)
(3)
31
(` in crore)
2015-16
763
7
70
2
68
(61)
849
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
383
III)
Reconciliation of Fair Value of Assets and Obligations
Fair Value of Plan Assets
Present Value of Obligation
Amount recognised in Balance Sheet (Surplus / Deficit)
IV)
Expenses recognised during the year
In Income Statement
Current Service Cost
Interest Cost
Return on Plan Assets
Actuarial (Gain) / Loss
Net Cost
In Other Comprehensive Income
Actuarial (Gain) / Loss
Return on Plan Assets
Net (Income) / Expense for the period
recognised in Other Comprehensive Income
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)
Gratuity
(Unfunded)
As at 31st March
2017
929
949
(20)
2016
849
865
(16)
2017
-
28
28
2016
-
31
31
Gratuity
(Funded)
(` in crore)
Gratuity
(Unfunded)
2016-17
2015-16
2016-17
2015-16
80
69
(66)
4
87
(14)
(3)
(17)
65
62
(60)
5
72
12
(10)
2
18
3
-
-
21
(21)
-
(21)
11
2
-
-
13
(1)
-
(1)
As at 31st March, 2017
(` in crore)
16
4
-
905
4
929
% Invested
1.72
0.43
-
97.42
0.43
100.00
As at 31st March, 2016
(` in crore)
20
10
1
781
37
849
% Invested
2.36
1.18
0.12
91.98
4.36
100.00
Gratuity (Funded)
2016-17
2006-08
(Ultimate)
8%
8%
6%
2015-16
2006-08
(Ultimate)
8%
8%
6%
Gratuity (Unfunded)
2016-17
2006-08
(Ultimate)
8%
-
6%
2015-16
2006-08
(Ultimate)
8%
-
6%
The estimates of Rate of Escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in the employment market.
The 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 Group’s policy for Plan Assets Management.
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
384
VII)
The expected contributions for Defined Benefit Plan for the next financial year will be in line with financial year 2016-17.
VIII) These plan’s typically expose the Group to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.
Investment
Risk
Interest Risk
Longevity Risk
Salary Risk
The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds.
A decrease in the bond interest rate will increase the plan liability; however, this will be partially
offset by an increase in the return on the plan’s debt investments.
The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan’s liability.
The present value of the defined plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan’s participants will increase the plan’s liability.
26.2 The Company had announced Voluntary Separation Scheme (VSS) for the employees of Allahabad & Nagpur Manufacturing
Divisions in the previous year. A sum of ` 156 crore had been paid during the previous year and debited to the Statement of Profit
and Loss under the head “Employee Benefits Expense”.
26.3 Share Based Payments
a)
Scheme details
Company has an Employee Stock Option Scheme under which the maximum quantum of options was granted at ` 642
(face value ` 10 each) with options to be vested from time to time on the basis of performance and other eligibility criteria.
Details of Employee Stock Option granted upto 31st March, 2015 but not vested as on 1st April, 2015 :
Financial Year
(Year of Grant)
2006-07
2008-09
2010-11
2011-12
2013-14
2014-15
Total
Number
5,51,760
13,200
5,760
16,855
60,107
45,419
6,93,101
Financial Year of
Vesting
2015-16
2015-16 & 2016-17
2015-16
2015-16
2015-16 to 2018-19
2015-16 to 2019-20
Range of
Exercise Price (`)
642
644.5
929
765 - 972
860 - 880
843.2 - 960.7
Range of Fair value
at Grant Date (`)
309.7
312.4 - 329.9
454.3
388.4 - 482
281.3 - 452.9
253.8 - 473
Details of Employee Stock Option granted from 1st April, 2015 to 31st March, 2017 but not vested as on 31st March, 2017:
Financial Year
(Year of Grant)
2015-16
2016-17
Total
Number
14,967
74,454
89,421
Financial Year of
Vesting
2016-17 to 2019-20
2017-18 to 2020-21
Range of
Exercise Price (`)
887.4
1096
Range of Fair value
at Grant Date (`)
254.5 - 346.4
299.5 - 408.9
Exercise period will expire not later than five years from the date of vesting of options or such other period as may be decided by the Human
Resources, Nomination and Remuneration Committee.
b)
Compensation expenses arising on account of the share based payments
Expenses arising from equity – settled share-based payment transactions
Year ended
31st March, 2017
1.00
(` in crore)
Year ended
31st March, 2016
2.26
c)
Fair Value on the grant date
The fair value at grant date is determined using Black Scholes Model which takes into account the exercise price, the
term of the option, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of the option.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
385
The model inputs for options granted during the year ended March 31, 2017 included;
a.
b.
c.
d.
e.
f.
g.
Weighted average exercise price ` 1,096 (March 31, 2016 ` 887)
Grant date: 05.10.2016 & 10.10.2016 (March 31, 2016: 10.10.2015)
Vesting year: 2017-18 to 2020-21 (March 31, 2016: 2016-17 to 2019-20)
Share price at grant date: ` 1,089 at 05.10.2016 & ` 1,096 at 10.10.2016)
Expected price volatility of Company’s share: 25.1 % to 26.5%
Expected dividend yield: 1.07 %
Risk free interest rate: 7 %
The expected price volatility is based on the historic volatility (based on remaining life of the options).
d) Movement in share options during the year:
Particulars
As of 31st March, 2017
As of 31st March, 2016
Balance at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Expired / Lapsed during the year
Balance at the end of the year
Number
of Share
Options
5,66,253
74,454
-
(81,815)
(14,210)
5,44,682
Weighted
Average
Exercise Price
697.61
1,096.00
-
642.03
758.55
758.82
Number
of Share
Options
6,93,101
14,967
-
(48,945)
(92,870)
5,66,253
Weighted
Average
Exercise Price
686.74
887.00
-
642.03
676.36
697.61
Weighted average remaining contractual life of the share option outstanding at the end of year is 247 days (Previous Year 580 days).
27. FINANCE COSTS
Interest Expenses*
Other Borrowing Costs
Applicable loss on foreign currency transactions and translation
Total
*
Interest Expenses are net of Interest Capitalised of ` 10,942 crore (Previous Year ` 8,096 crore) (Refer Note No. 1.5)
2016-17
3,157
1
691
3,849
28. OTHER EXPENSES
Manufacturing Expenses
Stores, Chemicals and Packing Materials
Electric Power, Fuel and Water
Labour Processing, Production Royalty and Machinery Hire Charges
Repairs to Building
Repairs to Machinery
Exchange Difference (Net)
Excise Duty #
Lease Rent
Land Development and Construction Expenditure
Selling and Distribution Expenses
Warehousing and Distribution Expenses
Sales Tax / VAT
Other Selling and Distribution Expenses
5,558
11,251
1,705
131
1,114
340
240
47
5,892
1,428
2,974
2016-17
20,386
59
5,249
10,741
1,286
85
1,121
(465)
449
13
6,221
1,416
1,825
(` in crore)
2015-16
2,610
2
1,079
3,691
(` in crore)
2015-16
18,479
34
10,294
9,462
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
386
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 Property, Plant & Equipment
Charity and Donations
Less: Transferred to Project Development Expenditure
Total
2016-17
(` in crore)
2015-16
2,329
2,490
286
1,366
952
340
715
428
35
113
668
1,797
4,496
264
1,155
955
223
500
419
37
77
683
9,722
1,961
38,500
10,606
2,507
36,074
#
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.
28.1 Corporate Social Responsibility (CSR)
(a)
(b)
(c)
(d)
CSR amount required to be spent by the Companies within the Group as per Section 135 of the Companies Act, 2013
read with Schedule VII thereof during the year is ` 636 crore (Previous Year ` 565 crore)
Expenditure related to Corporate Social Responsibility is ` 674 crore (Previous Year ` 659 crore).
Details of Amount spent towards CSR is given below:
Particulars
Rural Transformation
Healthcare
Education
Sports For Development
Disaster Relief
Urban Renewal
Arts and Culture
Total
2016-17
138
267
227
27
11
3
1
674
(` in crore)
2015-16
103
315
222
9
10
-
-
659
Out of note (b) above, ` 571 crore (Previous Year ` 586 crore) is spent through Reliance Foundation and ` 22 crore
(Previous Year ` Nil) is spent through Reliance Foundation Youth Sports, which are related parties.
Out of note (b) above, ` 5 crore (Previous Year ` 7 crore) is towards construction / acquisition of an asset that will be
owned by the Company.
29.
EARNINGS PER SHARE (EPS)
i)
ii)
iii)
iv)
v)
vi)
vii)
Net Profit after Tax as per Statement of Profit and Loss attributable to Equity
Shareholders (After adjusting Non Controlling Interest) (` in crore)
Weighted Average number of Equity Shares used as denominator for
calculating Basic EPS
Weighted Average Potential Equity Shares
Total Weighted Average number of Equity Shares used as denominator for
calculating Diluted EPS
Basic Earnings per Share (`)
Diluted Earnings per Share (`)
Face Value per Equity Share (`)
2016-17
2015-16
29,901
29,745
2,95,08,14,715
2,94,59,61,982
55,93,076
2,95,64,07,791
65,22,434
2,95,24,84,416
101.33
101.14
10
100.97
100.75
10
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
387
30. RELATED PARTIES DISCLOSURES
(i)
List of related parties with whom transactions have taken place and relationships:
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
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
Name of the Related Party
Relationship
24 X 7 Learning Private Limited
Aeon Learning Private Limited
Algenol LLC
Ashwani Commercials Private Limited
Atri Exports Private Limited
Big Tree Entertainment Private Limited
Big Tree Entertainment Singapore Pte. Limited
Carin Commercials Private Limited
Centura Agro Private Limited
Chander Commercials Private Limited
Creative Agrotech Private Limited
Dyulok Technologies Private Limited
Eenadu Television Private Limited
Einsten Commercials Private Limited
Fame Agro Private Limited
Fantain Sports Private Limted
Gaurav Overseas Private Limited
GenNext Ventures Investment Advisers LLP
Gujarat Chemical Port Terminal Company Limited
Honeywell Properties Private Limited
Indian Vaccines Corporation Limited
Jaipur Enclave Private Limited
Kaniska Commercials Private Limited
KCIPI Trading Company Private Limited
Marugandha Land Developers Private Limited
Matrix Genetics LLC
N.C. Trading Company Private Limited
Netravati Commercials Private Limited
Noveltech Agro Private Limited
Parinita Commercials Private Limited
Pepino Farms Private Limited
Prakhar Commercials Private Limited
PT Big Tree Entertainment Indonesia
Rakshita Commercials Private Limited
Reliance Brands Luxury Private Limited
Reliance Commercial Dealers Limited (upto 09.01.2017)
Reliance Commercial Trading Private Limited (upto 09.01.2017)
Reliance Europe Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Industrial Infrastructure Limited
Reliance LNG Limited (upto 09.01.2017)
Reliance Luxury Fashion Private Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private Limited
Rocky Farms Private Limited
Shree Salasar Bricks Private Limited
Spacebound Web Labs Private Limited
Vayana Private Limited
Vishnumaya Commercials Private Limited
Associate Companies
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 388
Sr.
No.
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
Name of the Related Party
Relationship
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
Jio Payments Bank Limited
Marks and Spencer Reliance India 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
Shri Alok Agarwal
Shri Srikanth Venkatachari
Shri K. Sethuraman
Smt. Nita M. Ambani
Dhirubhai Ambani Foundation
Hirachand Govardhandas Ambani Public Charitable Trust
HNH Trust and HNH Research Society
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Reliance Foundations Youth Sports (From 17.08.2016)
I P C L Employees Gratuity Fund - Baulpur Unit
I P C L Employees Provident Fund Trust
Reliance Employees Provident Fund Bombay
Reliance Industries Limited Employees Gratuity Fund
Reliance Industries Limited Staff Superannuation Scheme
Reliance Industries Limited Vadodara Unit Employees Superannuation Fund
RIL Vadodara Unit Employees Gratuity Fund
Joint Ventures
Key Managerial Personnel
(KMP)
Relative of KMP
Enterprises over which Key
Managerial Personnel are able to
exercise significant influence
Post Employment Benefits Plan
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 (ii)
Transactions during the year with related parties :
Sr.
No.
Nature of Transactions
(Excluding Reimbursements)
Associates/
Joint Ventures
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Purchase of Tangible and Intangible Assets
Purchase / Subscription of Investments
Sale / Transfer/Redemption of Investments
Net Loans and Advances, Deposits Given/
(Returned)
Revenue from Operations
Other Income
Purchases/ Material Consumed
Electric Power, Fuel and Water
Hire Charges
Employee Benefits Expense
Payment to Key Managerial Personnel/ Relative
Sales and Distribution Expenses
Rent
Professional Fees
General Expenses
Donations
Finance Costs
Balances as at 31st March, 2017
1
Investments
2
3
4
5
6
7
8
9
Trade Receivables*
Loans and Advances
Deposits
Unsecured Loans
Trade and Other Payables*
Financial Guarantees
Financial Lease Obligations
Performance Guarantees
Note :
Figures in italic represents Previous Year’s amounts.
*
Includes reimbursements
247
237
420
135
125
1,476
8
187
407
380
231
22
733
1,378
2,484
1,719
637
585
-
-
-
-
2,620
2,610
15
9
61
69
233
520
-
-
1
1
6,234
6,606
201
328
1
159
1,125
1,291
68
66
841
929
1,532
1,837
-
1
1
135
Key Managerial
Personnel/
Relative
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
85
79
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
389
Others
(` in crore)
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
337
351
-
-
-
-
-
-
-
-
-
-
618
611
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
247
237
420
135
125
1,476
8
187
407
380
231
22
733
1,378
2,484
1,719
637
585
337
351
85
79
2,620
2,610
15
9
61
69
233
520
618
611
1
1
6,234
6,606
201
328
1
159
1,125
1,291
68
66
841
929
1,532
1,837
-
1
1
135
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
390
(iii) Disclosure in respect of Major Related Party Transactions during the year :
Particulars
Relationship
2016-17
2015-16
Purchase of Tangible and Intangible 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
Big Tree Entertainment Private Limited
Vayana Private Limited
Brooks Brothers India Private Limited
Diesel Fashion India Reliance Private Limited
Football Sports Development Limited
IMG Reliance Limited
Jio Payments Bank Limited
Marks and Spencer Reliance India Private Limited
Reliance-Vision Express Private Limited
Ryohin-Keikaku Reliance India Private Limited
Zegna South Asia Private Limited
Sales/ Transfer/ Redemption of Investments
EFS Midstream LLC
Extramarks Education Private Limited
Reliance Commercial Trading Private Limited
Net Loans and Advances, Deposits Given/(Re-
turned)
Gujarat Chemical Port Terminal Company Limited
Chander Commercials Private Limited
Reliance Commercial Dealers Limited
Reliance Commercial Trading Private Limited
Reliance Europe Limited
Reliance Luxury Fashion Private Limited
Revenue from Operations
Eenadu Television Private Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Commercial Dealers Limited
Reliance Gas Transportation Infrastructure Limited
Reliance Industrial Infrastructure Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private Limited
Big Tree Entertainment Private Limited
Brook Brothers India Private Limited
Diesel Fashion India Reliance Private Limited
Football Sports Development Limited
IBN Lokmat News Private Limited
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Joint Venture
4
8
2
41
192
73
191
-
2
1
42
7
92
-
3
7
2
-
125
-
9
1
-
-
(3)
1
-
1
9
32
3
15
286
1
2
6
-
1
-
-
3
166
68
25
-
24
2
3
-
65
-
15
-
-
1
1,334
100
42
22
1
170
(6)
-
-
1
-
13
60
1
5
236
-
-
3
1
1
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
391
2016-17
2015-16
2
2
4
6
1
1
3
2
28
1
1
-
6
17
204
1
3
90
13
623
4
-
1
2
-
2
5
5
5
1
1
2
-
33
1
4
5
-
13
-
1
3
-
20
611
-
745
-
-
2
Relationship
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Others
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Associate
2,484
1,719
Associate
Associate
Associate
Associate
Others*
Others*
Others*
Others*
Others*
Others*
2
203
45
387
103
222
-
10
2
-
117
214
34
220
98
207
31
10
2
3
Particulars
Iconix Lifestyle India Private Limited
India Gas Solutions Private Limited
IndiaCast Media Distribution Private Limited
IndiaCast UK Limited
Marks and Spencer Reliance India Private Limited
Reliance Paul & Shark Fashions Private Limited
Reliance-Vision Express Private Limited
Ryohin - Keikaku Reliance India Private Limited
Viacom18 Media Private Limited
Zegna South Asia Private Limited
Reliance Foundation
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
Purchases/ Material Consumed
Gujarat Chemical Port Terminal Company Limited
Reliance Industrial Infrastructure Limited
Reliance Ports and Terminals Limited
Reliance Utilities and Power Private Limited
RP Chemicals (Malaysia ) Sdn. Bhd.
Diesel Fashion India Reliance Private Limited
Marks and Spencer Reliance India Private Limited
Zegna South Asia 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
Employee Benefits Expense
I P C L Employees Provident Fund Trust
Reliance Employees Provident Fund Bombay
Reliance Industries Limited Employees Gratuity Fund
Reliance Industries Limited Staff Superannuation
Scheme
Reliance Industries Limited Vadodara Unit
Employees Superannuation Fund
RIL Vadodara Unit Employees Gratuity Fund
*
Also includes Employee Contribution
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
392
Particulars
Relationship
2016-17
2015-16
Payment To Key Management Personnel/ Relative
Shri Mukesh D. Ambani
Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri P.M.S. Prasad
Shri P.K.Kapil
Shri Alok Agarwal
Shri Srikanth Venkatachari
Shri K. Sethuraman
Smt Nita M. Ambani
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
Relative of KMP
Sales and Distribution Expenses
Gujarat Chemical Port Terminal Company Limited
Reliance Ports and Terminals Limited
Brooks Brothers India Private Limited
IMG Reliance Limited
Rent
Reliance Industrial Infrastructure Limited
Professional Fees
Big Tree Entertainment Private Limited
GenNext Ventures Investment Advisers LLP
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
India Gas Solutions Private Limited
General Expenses
Big Tree Entertainment Private Limited
Eenadu Television Private Limited
Matrix Genetics LLC
Reliance Commercial Dealers Limited
Reliance Ports and Terminals Limited
IndiaCast Media Distribution Private Limited
Viacom18 Media Private Limited
Donations
Hirachand Govardhandas Ambani Public Charitable Trust
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Reliance Foundation Youth Sports
Finance Costs
Reliance Europe Limited
Associate
Associate
Joint Venture
Joint Venture
Associate
Associate
Associate
Associate
Associate
Joint Venture
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Others
Others
Others
Others
Associate
15
17
17
7
3
12
11
2
1
52
2,567
-
1
15
1
2
30
25
3
1
2
27
139
7
50
7
2
19
575
22
1
15
14
14
7
3
12
11
2
1
33
2,576
1
-
9
2
1
34
24
8
-
2
27
418
12
48
13
4
15
592
-
1
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 393
(iv) Balances as at 31st March, 2017
Particulars
Relationship
As at
31st March, 2017
As at
31st March, 2016
(` in crore)
As at
1st April, 2015
Loans and Advances
Gujarat Chemical Port Terminal Company Limited
Reliance Commercial Dealers Limited
Reliance Commercial Trading Private Limited
Reliance Europe Limited
Reliance Luxury Fashion Private Limited
Deposits
Ashwani Commericals Private Limited
Atri Exports Private Limited
Cairn 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
Prakher 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
Financial Guarantees
Reliance Europe Limited
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
-
-
-
-
1
65
19
77
10
34
15
43
3
17
147
50
4
23
5
6
3
6
1
48
6
-
353
118
29
33
10
-
150
6
3
-
65
19
77
10
34
15
43
3
17
138
50
4
23
5
6
3
6
1
48
6
175
353
118
29
33
10
6
-
12
3
-
65
19
77
10
33
15
43
3
17
110
50
4
23
5
6
3
6
1
48
6
155
353
118
29
33
10
Associate
1,532
1,837
1315
Note: All related party contracts / arrangements have been entered on arms’ length basis.
30.1 Compensation of Key Management Personnel
The remuneration of director and other member of key management personnel during the year was as follows:
i
ii
iii
iv
v
Short-term benefits
Post employment benefits
Other long term benefits
Share based payments
Termination benefits
2016-17
82
2
-
-
-
84
(` in crore)
2015-16
76
2
-
-
-
78
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
394
31.1 Disclosure of the Company’s Interest in Oil and Gas Joint Arrangements (Joint Operations):
Sr.
No.
Name of the Fields in the Joint
Arrangement (Joint Operations)
Company’s
% Interest
2016-17 2015-16
Partners and their Participating Interest (PI)
Country
1
2
3
4
5
6
7
8
9
Panna Mukta
30%
30% BG Exploration & Production India Limited - 30% ;
Mid and South 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% ;
India
India
India
India
GS - OSN - 2000/1
CB-ONN-2003/1
CY-DWN-2001/2
Block M-17
BP Exploration (Alpha) Limited - 30%
90%
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
India
India
India
Myanmar
Company Limited (UNRD) - 4%
Block M-18
96%
96% United National Resources Development Services
Myanmar
10
EFS JDA Partnership
45%
45% Pioneer Natural Resources USA Inc. - 46.354%;
Company Limited (UNRD) - 4%
Atlas Reliance Marcellus Joint
Venture Partnership
Carrizo Marcellus Joint Venture
Newpek LLC - 8.646%
40%
40% Chevron Upstream Northeast LLC. - 60%
60%
60% Carrizo Marcellus LLC - 40%
USA
USA
USA
Niko (NELPIO) Limited has withdrawn its entire 10% PI from the Joint Operating Agreement (JOA), however the assignment to RIL & BPEAL is pending
subject to Government approval.
11
12
*
31.2 Quantities of Company’s Interest (on gross basis) in Proved Reserves and Proved Developed Reserves:
Reserves in India
Reserves outside India (North America)
Proved Reserves
(Million MT)
Proved Developed
Reserves
(Million MT)
Proved Reserves
(Million MT)
Proved Developed
Reserves (Million MT)
2016-17
2015-16
2016-17
2015-16
2016-17
2015-16
2016-17
2015-16
4.32
(0.26)
(0.35)
3.71
1.96
2.78
(0.42)
4.32
1.05
(0.12)
(0.35)
0.58
1.47
-
(0.42)
1.05
21.27
(9.30)
(1.06)
10.91
23.51
(0.85)
(1.39)
21.27
5.88
(1.14)
(1.06)
3.68
7.45
(0.18)
(1.39)
5.88
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#)
2016-17
2015-16
2016-17
2015-16
2016-17
2015-16
2016-17
2015-16
71,731
(8,500)
(2,280)
60,951
65,741
9,008
(3,018)
71,731
14,582
1,995
(2,280)
14,297
18,812
(1,212)
(3,018)
14,582
46,790
(3,227)
(2,902)
40,661
53,665
(3,779)
(3,096)
46,790
21,762
1,189
(2,902)
20,049
20,197
4,661
(3,096)
21,762
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
#
1 cubic meter (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl
The reserve estimates for producing fields are revised based on the performance of producing fields and with respect to discovered
fields, the revision are based on the revised geological and reservoir simulation studies.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
32. CONTINGENT LIABILITIES AND COMMITMENTS
(I)
(II)
Contingent Liabilities
(A)
(B)
Claims against the Company / disputed liabilities not acknowl-
edged as debts*
(a)
(b)
Guarantees
(i)
In respect of Joint Ventures
In respect of Others
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)
In respect of Joint Ventures
In respect of Others
(ii)
(iii) Outstanding Guarantees furnished to Banks and Financial
Institutions including in respect of Letters of Credits
(a)
(b)
In respect of Joint Ventures
In respect of Others
(C) Other Money for which the Company is contingently liable
(i)
Liability in respect of bills discounted with Banks (including third
party bills discounting)
(a)
(b)
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:
In respect of Joint Ventures
(a)
(b)
In respect of Others
Uncalled Liability on Shares and Other Investments Partly Paid
(B)
(C) Other Commitments
(a)
Sales Tax deferral liability assigned (` Nil [Previous year ` 29,847])
395
2016-17
(` in crore)
2015-16
1,142
3,549
-
8,371
-
1,163
20
15,205
-
383
901
22,606
94
-
847
3,163
-
7,112
-
181
20
35,774
-
734
177
21,463
116
-
*
The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
(III)
(IV)
The Income -Tax Assessments of the Company have been completed up to Assessment Year 2013-14. The total outstanding
demand upto Assessment Year 2013-14 is ` 2,257 crore as on date (i.e 31st March 2017). 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.
The Securities and Exchange Board of India has passed an Order under section 11B of the Securities and Exchange Board of
India Act, 1992 on 24th March 2017 in the matter concerning trading in RPL shares by the Company in the year 2007, directing
(i) disgorgement of ` 447 crore along with interest calculated at 12% per annum from 29th November 2007 till date of payment
and (ii) prohibiting RIL from dealing in equity derivatives in the Futures and Options segment of the stock exchanges, directly
or indirectly for a period of one year from 24th March 2017.The Company has been legally advised that the Order is based on
surmises, conjectures and untenable reasoning. The Company is in the process of filing an appeal against the said Order before
the Securities Appellate Tribunal.
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
396
33. CAPITAL MANAGEMENT
The Group adheres to a robust Capital Management framework which is underpinned by the following guiding principles;
a)
b)
c)
d)
Maintain financial strength to ensure AAA ratings domestically and investment grade ratings internationally.
Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity risk while meeting investment
requirements.
Proactively manage group exposure in forex, interest and commodities to mitigate risk to earnings.
Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility of the Balance sheet.
This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market conditions and
interest rates environment.
The gearing ratio at end of the reporting period was as follows.
Gross Debt
Cash and Marketable Securities
Net Debt (A)
Total Equity (As per Balance Sheet) (B)
Net Gearing (A/B)
34.
FINANCIAL INSTRUMENTS
As at
31st March, 2017
1,96,601
77,226
1,19,375
2,63,709
0.45
As at
31st March, 2016
1,80,665
89,969
90,696
2,31,556
0.39
(` in crore)
As at
1st April, 2015
1,60,352
87,838
72,514
2,08,720
0.35
Valuation
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:
a)
b)
c)
d)
e)
The fair value of investment in quoted Equity Shares, Bonds, Government Securities, Treasury Bills and Mutual Funds is measured at
quoted price or NAV.
The fair value of Interest Rate Swaps is calculated as the present value of the estimated future cash flows based on observable yield
curves.
The fair value of Forward Foreign Exchange contracts and Currency Swaps is determined using forward exchange rates and yield
curves at the balance sheet date.
The fair value of Foreign Currency Option Contracts is determined using the Black Scholes Valuation Model.
Commodity Derivative Contracts are valued using readily available information in markets and quotations from exchange, brokers
and price index developers
f )
The fair value of the remaining financial instruments is determined using discounted cash flow analysis.
g)
All foreign currency denominated assets and liabilities are translated using exchange rate at the reporting date.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 Fair Valuation Measurement Hierarchy:
397
(` in crore)
Particulars
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Carrying
Amount
Level of input used in
Level 2
Level 1
Carrying
Amount
Level of input used in
Level 2
Level 1
Carrying
Amount
Level of input used in
Level 2
Level 1
Financial Assets
At Amortised Cost
Investments*
Trade Receivables
Cash and Bank Balances
Loans
Other Financial Assets
At FVTPL
Investments
Financial Derivatives
Commodity Derivatives
Other Financial Assets
At FVTOCI
Investments
Financial Liabilities
At Amortised Cost
Borrowings
Trade Payables
Other Financial Liabilities
At FVTPL
Financial Derivatives
Commodity Derivatives
Other Financial Liabilities
3,329
8,177
3,023
3,704
7,739
40,076
258
535
3
-
-
-
-
-
-
-
-
-
-
34,985
35
-
-
5,091
223
535
3
3,125
4,465
11,028
2,873
4,968
30,312
717
432
-
-
-
-
-
-
-
-
-
-
-
21,993
12
-
-
8,319
705
432
-
3,032
4,902
12,357
2,706
5,691
25,015
1
18
-
-
-
-
-
-
-
-
-
-
-
16,215
1
-
-
8,800
-
18
-
32,075
27,064
5,011
47,092
34,493
12,599
47,925
42,415
5,510
1,96,601
76,595
95,781
4,246
116
500
-
-
-
-
-
-
-
-
-
1,80,665
60,296
73,490
4,246
116
500
2,590
-
229
-
-
-
-
-
-
-
-
-
1,60,352
58,548
29,979
2,590
-
229
2,204
-
18
-
-
-
-
-
-
-
-
-
2,204
-
18
*
Excludes Financial Assets measured at Cost (Refer Note No. 2.1).
The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Foreign Currency Risk
The following table shows foreign currency exposures in USD, EUR and JPY on financial instruments at the end of the reporting period. The
exposure to foreign currency for all other currencies are not material.
Particulars
Loans
Trade and Other Payables
Trade and Other Receivables
Derivatives
- Forwards and Futures
- Currency Swap
- Options
Net Exposure
As at 31st March, 2017
USD
108,647
72,401
(6,301)
EUR
8,498
1,724
(55)
JPY
1,673
186
565
As at 31st March, 2016
USD
1,03,750
54,584
(2,337)
EUR
6,873
5,604
(2,233)
JPY
2,110
768
(196)
USD
98,215
41,631
(5,924)
(72,691)
2,478
1,076
1,05,610
(9,310)
-
-
857
(1,821)
-
-
603
(46,291)
2,933
2,366
1,15,005
(10,335)
-
-
(91)
(2,714)
-
-
(32)
19,456
2,766
1,950
1,58,094
(` in crore)
As at 1st April, 2015
EUR
3,900
2,102
(2,833)
(3,527)
-
-
(358)
JPY
2,411
513
(166)
(2,489)
-
-
269
The net exposures have natural hedges in the form of future foreign currency earnings and earnings linked to foreign currency for which the company may follow hedge
accounting.
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 398
Interest Rate Risk
The following table shows exposure of the Group’s borrowings and derivatives to interest rate changes at the end of the reporting period:
Particulars
Loans
Long term Floating Loan
Long term Fixed Loan
Short term Loan
Total
Derivatives
Foreign Currency Interest Rate Swap
Rupees Interest Rate Swap
Currency Swap
Total
As at 31st March, 2017
As at 31st March, 2016
(` in crore)
As at 1st April, 2015
91,340
73,733
31,528
1,96,601
27,829
9,995
2,478
40,302
84,770
72,350
23,545
1,80,665
39,968
16,835
2,933
59,736
77,226
55,484
27,642
1,60,352
45,532
23,640
2,766
71,938
Commodity Price Risk
Commodity price risk arises due to fluctuation in prices of crude oil, other feed stock and products. The Group has a risk management
framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs.
The Group’s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with
the risk management policy, the Group enters into various transactions using derivatives and uses Over the Counter (OTC) as well as
Exchange Traded Futures, Options and Swap contracts to hedge its commodity and freight exposure.
Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due, causing financial
loss to the company. Credit risk arises from company’s activities in investments, dealing in derivatives and outstanding receivables from
customers.
The Group has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Sales made to
customers on credit are generally secured through Letters of Credit, Bank Guarantees, Parent Company Guarantees, Advance Payments and
Factoring & Forfaiting without recourse to the Group.
Liquidity Risk
Liquidity risk arises from the Group’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies
maintaining sufficient stock of cash and marketable securities (` 77,226 crore as on 31st March 2017; ` 89,969 crore as on 31st March 2016)
and maintaining availability of standby funding through an adequate line up of committed credit facilities (` 33,644 crore as on
31st March 2017; ` 58,067 crore as on 31st March 2016). The Group accesses global financial markets to meet its liquidity requirements.
It uses a range of products and a mix of currencies to ensure efficient funding from across well-diversified markets and investor pools.
Treasury monitors rolling forecasts of the Group’s cash flow position and ensures that the Group is able to meet its financial obligation at all
times including contingencies.
The Group’s liquidity is managed centrally with operating units forecasting their cash and liquidity requirements. Treasury pools the cash
surpluses from across the different operating units and then arranges to either fund the net deficit or invest the net surplus in the market.
Particulars
Maturity Profile of Loans and Derivative Financial Liabilities as on 31 March, 2017
3-5
Years
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
Non Derivative Liabilities
Long Term Loans*
Short Term Loans
Total Borrowings
Derivative Liabilities
Forwards
Options
Currency Swap
Interest Rate Swap
Total Derivative Liabilities
4,280
29,092
33,372
1,340
33
-
58
1,431
1,511
2,349
3,860
456
64
-
1
521
7,134
87
7,221
898
62
42
175
1,177
68,211
-
68,211
31,227
-
31,227
423
-
485
51
959
-
-
200
74
274
*
Including ` 424 Crore as prepaid finance charges
(` in crore)
Total
1,65,497
31,528
1,97,025
3,117
159
727
359
4,362
Above
5 Years
53,134
-
53,134
-
-
-
-
-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 Particulars
Maturity Profile of Loans and Derivative Financial Liabilities as on 31 March, 2016
3-5
Years
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
Non Derivative Liabilities
Long Term Loans*
Short Term Loans
Total Borrowings
Derivative Liabilities
Forwards
Options
Currency Swap
Interest Rate Swap
Total Derivative Liabilities
2,659
18,965
21,624
9,397
3,795
13,192
185
-
-
5
190
11
-
-
13
24
3,417
785
4,202
585
-
102
32
719
61,179
-
61,179
135
-
90
419
644
32,053
-
32,053
-
-
727
286
1,013
399
(` in crore)
Total
1,57,483
23,545
1,81,028
916
-
919
755
2,590
Above
5 Years
48,778
-
48,778
-
-
-
-
-
*
Including ` 363 Crore as prepaid finance charges
Hedge Accounting
The Group’s business objective includes safe-guarding its hydrocarbon earnings against adverse price movements of crude oil and other
feedstock, refined products, precious metals, freight costs as well as foreign exchange and interest rates. Reliance has adopted a structured
risk management policy to hedge all these risks within an acceptable risk limit and an approved hedge accounting framework which allows
for Fair Value and Cash Flow hedges. Hedging instruments include exchange traded futures and options, OTC swaps, forwards and options
as well as non-derivative instruments to achieve this objective. The table below shows the position of hedging instruments and hedged
items as of the balance sheet date.
Disclosure of effects of hedge accounting is as follows:
(` in crore)
A. Fair Value Hedge
Hedging Instrument
Type of Hedge and Risks
Foreign currency risk
Foreign currency risk
component - Borrowings
Commodity price risk
Derivative Contracts
Hedging Items
Type of Hedge and Risks
Nominal
Value
Quantity
Carrying amount
Changes
in FV
Hedge
Maturity Date
Line Item in
Balance Sheet
(Kbbl)
(Kgs)
Assets Liabilities
34,101
-
-
32,511
1,590
20,886
2,37,540
3,765
382
55
327
Apr. 2017 to
Mar. 2018
Non Current
Liabilities-
Borrowings
Apr. 2017 to
Dec. 2020
Other Financial
Assets / Liabilities
(` in crore)
Carrying amount Changes
in FV
Assets Liabilities
Line Item in Balance Sheet
Foreign currency risk
Export Firm Commitments
Commodity price risk
Firm Commitments for purchase of feedstock and freight
Firm Commitments for sale of products
Inventories
-
1,590
1,590
Current Liabilities - Other Financial Liabilities
3
-
6,328
250
116
16
247 Other Current Assets / Liabilities
116 Other Current Liabilities
(36)
Inventories
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
400
B. Cash Flow Hedge
Hedging Instrument
Type of Hedge and Risks
Foreign currency risk
Foreign currency risk Component -
Borrowings
Hedging Items
Type of Hedge and Risks
Foreign currency risk
Highly Probable Exports
(` in crore)
Nominal
Value
Carrying amount
Assets Liabilities
Changes
in FV
Hedge
Maturity Date
Line Item in Balance
Sheet
37,221
-
35,485
1,736
Apr. 2017 to
Mar. 2018
Non Current Liabilities-
Borrowings
Nominal Value
Changes in FV
Hedge Reserve
(` in crore)
Line Item in Balance
Sheet
37,221
1,736
1,736 Other Equities
35.
36.
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, 2017 to 31st March, 2017 in respect of subsidiaries / associates having financial year ended 31st December, 2016.
SEGMENT INFORMATION
The Group’s operating segments are established on the basis of those components of the group that are evaluated regularly by the
Executive Committee (the ‘Chief Operating Decision Maker’ as defined in Ind AS 108 - ‘Operating Segments’), in deciding how to
allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the
differing risks and returns and the internal business reporting systems.
The Group has four principal operating and reporting segments; viz. Refining, Petrochemicals, Oil & Gas and Organized Retail.
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”.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
(i)
Primary Segment Information
401
(` in crore)
Particulars
Refining
Petrochemicals
Oil and Gas
Organized Retail
Others
Unallocable
Total
2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16
2016-17 2015-16
2016-17 2015-16
2016-17 2015-16
1
2
3
Segment Revenue
External Turnover
Inter Segment
Turnover
Gross Turnover*
Less: Excise Duty /
Service Tax
Net Turnover
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 Non Controlling
Interest)
Add: Share of (Profit)
/ Loss transferred
to Non Controlling
Interest
Profit after Tax (after
adjustment for Non
Controlling Interest)
Other Information
Segment Assets
Segment Liabilities
Capital Expenditure
Depreciation /
Amortisation and
Depletion Expense
1,96,146 1,76,366
58,579
54,687
86,600
5,872
81,766
644
2,50,833 2,34,945
11,399
15,943
92,472
7,074
82,410
6,684
5,191
-
5,191
77
2,34,890 2,23,546
23,534
25,056
85,398
12,990
75,726
10,186
5,114
(1,584)
-
-
25,056
-
-
25,056
-
-
23,534
-
-
23,534
-
-
12,990
-
-
12,990
-
-
10,186
-
-
10,186
-
-
(1,584)
-
-
(1,584)
7,505
9
7,514
138
7,376
3,630
-
-
3,630
-
-
3,630
33,452
313
20,474
601
8,791
2,427
33,765
427
21,075
146
11,218
1,277
33,338
784
20,929
504
9,941
491
-
-
784
-
-
784
-
-
504
-
-
504
-
-
491
-
-
491
7,187
2,009
9,196
932
8,264
1,103
1,103
-
-
1,103
-
-
-
-
-
3,161
3,849
2,985
2,297
8,880
1,321
(7,904)
-
-
3,30,180
-
2,93,298
-
- 3,30,180 2,93,298
19,299
-
24,798
- 3,05,382 2,73,999
39,184
40,898
227
3,691
3,244
(220)
8,042
834
(9,096)
3,849
2,985
40,034
8,880
1,321
29,833
3,691
3,244
38,737
8,042
834
29,861
(12)
(35)
-
-
-
-
(22)
(13)
102
(68)
-
-
68
(116)
25,044
23,499
12,990
10,186
(1,584)
3,630
762
491
593
1,035
(7,904)
(9,096)
29,901
29,745
1,80,720 1,64,824
1,30,713 1,06,536
39,633
3,242
13,600
3,559
1,10,557
53,513
21,568
3,475
89,005
43,463
4,507
3,526
42,225
63,095
6,168
2,841
42,454
70,352
9,701
3,283
11,396
5,260
781
395
10,023
4,332
269
347
2,17,594 1,42,000
92,376
1,33,089
50,821
69,260
188
223
1,44,310 1,50,691
3,21,132 2,81,938
8,064
979
3,365
1,153
7,06,802
7,06,802
1,14,742
11,646
5,98,997
5,98,997
1,12,995
11,565
*
Total Gross Turnover is after elimination of inter segment turnover of ` 63,299 crore (Previous Year ` 61,842 crore).
Inter segment pricing are at Arm’s length basis.
As per Indian Accounting Standard 108 - Operating Segments, the Company has reported segment information on
consolidated basis including businesses conducted through its subsidiaries.
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:
–
–
–
(ii)
(iii)
(iv)
Telecom / Broadband Business
Media
SEZ Development
Textile
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
402
(v)
Secondary Segment Information
1
2
Segment Revenue – External Turnover
Within India
Outside India
Total
Non-Current Assets
Within India
Outside India
Total Non-Current Assets
2016-17
1,52,197
1,77,983
3,30,180
5,33,668
26,321
5,59,989
` in crore
2015-16
1,29,149
1,64,149
2,93,298
4,49,570
21,642
4,71,212
37.
ENTERPRISES CONSOLIDATED AS SUBSIDIARY IN ACCORDANCE WITH INDIAN ACCOUNTING STANDARD
110-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 *
Capital18 Fincap Private Limited
Central Park Enterprises DMCC *
Cluster Commercial Private Limited
Colorful Media Private Limited
Colosceum Media Private Limited
Delta Corp East Africa Limited
Devashree Commercials Private Limited
Digital18 Media Limited
Dignity Mercantile Private 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
Gapco Kenya Limited *
Gapco Tanzania Limited *
Gapco Uganda Limited *
Gapoil (Zanzibar) Limited *
Girisha Commercials Private Limited
Greycells18 Media Limited
Gulf Africa Petroleum Corporation *
Ibn18 (Mauritius) Limited
Independent Media Trust
Indiawin Sports Private Limited
Infomedia Press Limited
Country of
Incorporation
India
India
USA
USA
Australia
USA
India
UAE
India
India
India
Kenya
India
India
India
Mauritius
India
India
Marshall Islands
Marshall Islands
Marshall Islands
Marshall Islands
Marshall Islands
Marshall Islands
Kenya
Tanzania
Uganda
Zanzibar
India
India
Mauritius
Mauritius
India
India
India
Proportion of
Ownership Interest
100.00%
21.27%
100.00%
100.00%
100.00%
100.00%
73.16%
100.00%
100.00%
100.00%
73.16%
58.80%
100.00%
73.16%
100.00%
73.16%
67.27%
41.70%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
76.00%
76.00%
76.00%
76.00%
100.00%
54.30%
76.00%
41.70%
100.00%
100.00%
37.08%
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
Name of the Enterprise
Kanhatech Solutions Limited
Model Economic Township Limited
Moneycontrol Dot Com India Limited
Network18 Holdings Limited
Network18 Media Trust
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
Reliance Clothing India Private Limited
Reliance Commercial Dealers Limited
Reliance Commercial Land & Infrastructure Limited
Reliance Commercial Trading Private Limited
Reliance Comtrade Private Limited
Reliance Corporate IT Park Limited
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 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. *
Reliance Jio Infratel Private Limited
403
Proportion of
Ownership Interest
90.67%
100.00%
67.27%
73.16%
73.16%
73.16%
37.07%
41.70%
100.00%
100.00%
100.00%
100.00%
100.00%
73.16%
100.00%
100.00%
100.00%
75.56%
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%
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%
99.44%
99.44%
99.44%
99.44%
100.00%
Country of
Incorporation
India
India
India
Mauritius
India
India
Cyprus
India
India
India
India
India
Malaysia
India
India
India
India
India
India
India
India
India
India
India
India
USA
USA
USA
USA
India
India
India
Singapore
UAE
India
Netherlands
India
Singapore
UK
USA
India
UAE
India
India
India
USA
India
Singapore
UK
USA
India
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 404
Name of the Enterprise
Reliance Jio Media Private Limited
Reliance Jio Messaging Services Private Limited
Reliance Lifestyle Holdings Limited
Reliance LNG 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
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 SMSL 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
Reliance-GrandOptical 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
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
*
#
Subsidiary Company having 31st December as a reporting date.
Formerly known as Strategic Manpower Solutions Limited
Country of
Incorporation
India
India
India
India
USA
USA
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Australia
Myanmar
USA
Malaysia
India
India
India
India
India
India
India
Mauritius
Mauritius
India
India
India
Kenya
Mauritius
India
Proportion of
Ownership Interest
100.00%
100.00%
75.56%
90.00%
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%
100.00%
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%
100.00%
73.16%
73.16%
41.70%
41.97%
100.00%
100.00%
73.16%
73.16%
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 405
38.
Significant Enterprises consolidated as Associates and Joint Ventures in accordance with Indian Accounting Standard
28 - Investments in Associates and Joint Ventures
Name of the Enterprise
24 X 7 Learning Private Limited
Aeon Learning Private Limited
Algenol LLC#
Big Tree Entertainment Private Limited
Big Tree Entertainment Singapore Pte. Limited
Dyulok Technologies Private Limited
Brooks Brothers India Private Limited
D.E. Shaw India Securities Private Limited
Diesel Fashion India Reliance Private Limited
Eenadu Television Private Limited
Fantain Sports 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 Media Distribution Private Limited
IndiaCast UK Limited
IndiaCast US Limited
Indian Vaccines Corporation Limited
Jio Payments Bank Limited
Marks and Spencer Reliance India Private Limited
Matrix Genetics LLC#
PT Big Tree Entertainment Indonesia
Reliance Brands Luxury Private Limited
Reliance Europe Limited#
Reliance Industrial Infrastructure Limited
Reliance Luxury Fashion 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
Spacebound Web Labs 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.
Country of
Incorporation
India
India
USA
India
Singapore
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
UK
USA
India
India
India
USA
Indonesia
India
UK
India
India
India
India
India
Cyprus
India
India
India
India
India
UK
India
USA
India
Proportion of
ownership interest
27.24%
18.07%
49.05%
28.58%
28.58%
16.24%
37.02%
50.00%
37.02%
10.22%
14.58%
55.00%
50.00%
50.00%
41.80%
20.85%
37.78%
50.00%
50.00%
31.27%
31.27%
31.27%
33.33%
70.00%
46.26%
30.63%
28.58%
37.78%
50.00%
45. 43%
37.78%
37.78%
47.20%
47.20%
20.85%
37.02%
16.59%
46.26%
36.58%
39.15%
20.85%
20.85%
20.85%
37.02%
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 406
39. 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
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Adventure Marketing Private Limited
AETN18 Media Private Limited
Capital18 Fincap Private Limited
Cluster Commercial Private Limited
Colorful Media Private Limited
Colosceum Media Private Limited
Devashree Commercials Private Limited
Digital18 Media Limited
Dignity Mercantile Private Limited
e-Eighteen.com Limited
Equator Trading Enterprises Private Limited
Girisha Commercials 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
Network18 Media & Investments Limited
Network18 Media Trust
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 Techonologies Limited
Reliance Ambit Trade Private Limited
Reliance Aromatics and Petrochemicals Limited
Reliance Brands Limited
Reliance Chemicals Limited
Reliance Clothing India Private Limited
Reliance Commercial Dealers Limited
Reliance Commercial Land & Infrastructure Limited
Reliance Commercial Trading Private Limited
Net Assets i.e. Total Assets minus
Total Liabilities
As % of
consolidated
Net Assets
Amount
(` in crore)
Share in
Profit or Loss
As % of
consolidated
Profit or Loss
Amount
(` in crore)
Share in
Other Comprehensive Income
Amount
(` in crore)
As % of
consolidated
Other
Comprehensive
Income
Share in
Total Comprehensive Income
Amount
(` in crore)
As % of
consolidated
Total
Comprehensive
Income
109.33
2,88,313.18
105.10
31,424.69
120.24
2,192.37
105.97
33,617.06
0.15
0.01
0.04
(0.00)
0.15
0.01
(0.00)
0.00
0.00
0.03
0.51
0.00
(0.00)
1.28
0.08
(0.01)
0.03
1.61
0.00
0.96
(0.00)
(0.00)
3.89
0.00
0.15
0.16
0.00
0.00
0.30
1.05
0.19
0.99
(0.01)
0.08
1.64
0.00
382.99
26.65
94.26
(0.14)
382.98
16.07
(0.01)
4.52
0.00
70.67
1,338.60
0.00
(9.12)
3,365.59
206.93
(30.84)
70.42
4,239.09
0.25
2,539.46
(0.01)
(11.20)
10,259.96
0.10
383.38
414.10
0.01
0.06
778.30
2,780.07
497.67
2,604.93
(13.32)
222.51
4,335.26
3.19
(0.00)
(0.09)
0.00
(0.00)
(0.00)
0.00
(0.00)
0.00
(0.00)
0.05
(0.00)
0.00
(0.01)
(0.00)
(0.01)
(0.01)
(0.00)
(0.02)
0.00
(0.40)
(0.00)
(0.38)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.06)
(0.00)
(0.03)
0.00
(0.00)
0.00
(0.00)
(25.86)
0.64
(0.14)
(0.00)
0.90
(0.00)
0.25
(0.00)
14.68
(0.13)
0.01
(3.86)
(0.00)
(2.57)
(3.50)
(0.88)
(6.69)
0.01
(118.69)
(0.00)
(113.08)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(1.24)
(0.08)
(18.07)
(0.21)
(7.66)
0.52
(0.51)
0.86
-
(0.01)
-
-
-
0.00
-
0.00
-
0.00
-
-
0.00
-
(0.00)
0.00
-
(0.03)
-
0.01
-
0.01
-
-
-
-
-
-
-
-
0.00
-
(0.00)
(0.02)
-
-
-
(0.09)
-
-
-
0.00
-
0.01
-
0.00
-
-
0.02
-
(0.00)
0.00
-
(0.49)
-
0.14
-
0.24
-
-
-
-
-
-
-
-
0.07
-
(0.01)
(0.31)
-
-
(0.00)
(0.08)
0.00
(0.00)
(0.00)
0.00
(0.00)
0.00
(0.00)
0.05
(0.00)
0.00
(0.01)
(0.00)
(0.01)
(0.01)
(0.00)
(0.02)
0.00
(0.37)
(0.00)
(0.36)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.06)
(0.00)
(0.02)
0.00
(0.00)
0.00
(0.00)
(25.95)
0.64
(0.14)
(0.00)
0.90
(0.00)
0.26
(0.00)
14.68
(0.13)
0.01
(3.84)
(0.00)
(2.57)
(3.50)
(0.88)
(7.18)
0.01
(118.55)
(0.00)
(112.84)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(1.24)
(0.08)
(18.00)
(0.21)
(7.67)
0.21
(0.51)
0.86
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 Share in
Other Comprehensive Income
Amount
(` in crore)
As % of
consolidated
Other
Comprehensive
Income
-
(0.37)
-
Name of the Enterprise
Net Assets i.e. Total Assets minus
Total Liabilities
As % of
consolidated
Net Assets
Amount
(` in crore)
Share in
Profit or Loss
As % of
consolidated
Profit or Loss
Amount
(` in crore)
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
Reliance Comtrade Private Limited
Reliance Corporate IT Park Limited
Reliance Eminent Trading & Commercial Private
Limited
Reliance Energy and Project Development Limited
Reliance Energy Generation and Distribution Limited
Reliance Gas Pipelines Limited
Reliance Global Commercial Limited
Reliance-GrandOptical 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 LNG 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 SMSL 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
0.04
3.56
1.45
0.48
4.12
0.28
0.00
0.00
6.77
0.01
0.00
0.00
26.87
0.00
0.03
0.04
0.02
0.00
0.24
0.02
0.07
0.99
0.96
0.24
1.07
0.04
0.00
2.59
2.27
0.24
(0.01)
0.71
0.00
0.00
0.00
0.00
1.30
0.10
0.06
1.28
2.33
118.05
9,385.83
3,836.13
1,256.05
10,871.28
739.04
0.06
0.02
17,851.89
17.96
1.07
8.31
70,864.39
0.79
85.23
95.16
65.41
0.04
625.00
45.03
184.66
2,613.52
2,537.41
631.62
2,816.94
101.93
12.73
6,819.57
5,996.78
629.81
(14.72)
1,866.98
0.05
0.02
1.88
0.06
3,416.67
262.85
151.49
3,376.03
6,133.58
(0.00)
0.58
(0.04)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.06)
(0.01)
0.00
(0.01)
(0.10)
(0.00)
(0.00)
(0.00)
0.02
(0.00)
(0.12)
0.08
(0.00)
0.02
(0.06)
(0.00)
(0.04)
0.00
0.00
1.48
0.00
(0.01)
0.00
1.42
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.01)
1.44
(0.00)
(0.01)
174.80
(12.96)
(0.08)
(0.47)
(0.08)
0.00
(0.00)
(19.27)
(1.93)
0.05
(1.55)
(31.37)
(0.18)
(0.07)
(1.10)
4.56
(0.00)
(35.33)
22.93
(0.72)
6.46
(18.74)
(1.39)
(11.34)
0.02
0.71
442.60
0.02
(1.52)
0.31
423.92
(0.10)
(0.01)
(0.21)
0.01
(0.34)
(0.84)
(2.47)
430.23
(1.03)
-
-
-
-
-
9.40
-
-
-
-
-
-
-
(0.00)
-
(0.00)
0.28
-
0.23
-
-
-
-
(0.00)
(0.11)
-
-
0.76
-
-
-
-
-
-
-
-
-
-
407
Share in
Total Comprehensive Income
As % of
consolidated
Total
Comprehensive
Income
(0.00)
0.53
(0.04)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
0.48
(0.01)
0.00
(0.00)
(0.10)
(0.00)
(0.00)
(0.00)
0.01
(0.00)
(0.11)
0.09
(0.00)
0.03
(0.06)
(0.00)
(0.04)
0.00
0.00
1.39
0.00
(0.00)
0.04
1.34
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.01)
1.36
(0.00)
Amount
(` in crore)
(0.01)
168.09
(12.96)
(0.08)
(0.47)
(0.08)
0.00
(0.00)
152.08
(1.93)
0.05
(1.55)
(31.37)
(0.18)
(0.07)
(1.10)
4.55
(0.00)
(35.37)
28.04
(0.72)
10.57
(18.74)
(1.39)
(11.34)
0.02
0.68
440.52
0.02
(1.52)
14.15
423.92
(0.10)
(0.01)
(0.21)
0.01
(0.34)
(0.84)
(2.47)
430.23
(1.03)
-
(6.71)
-
-
-
-
-
-
171.35
-
-
-
-
-
-
-
(0.01)
-
(0.04)
5.11
-
4.11
-
-
-
-
(0.03)
(2.08)
-
-
13.84
-
-
-
-
-
-
-
-
-
-
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 408
Name of the Enterprise
78
79
80
81
82
83
84
85
86
87
88
Foreign
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
RRB Investments Private Limited
RRB Mediasoft Private Limited
RRK Finhold Private Limited
RVT Finhold Private Limited
RVT Media Private Limited
Setpro18 Distribution Limited
Surela Investment and Trading Private Limited
TV18 Broadcast Limited
TV18 Home Shopping Network Limited
Watermark Infratech Private Limited
Web18 Software Services Limited
Aurora Algae Inc.
Aurora Algae Pty Limited
Aurora Algae RGV LLC
Affinity Names Inc.
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
Gapco Kenya Limited
Gapco Tanzania Limited
Gapco Uganda Limited
Gapoil (Zanzibar) Limited
Gulf Africa Petroleum Corporation
Ibn18 (Mauritius) Limited
Network18 Holdings Limited
NW18 HSN Holdings Plc
Recron (Malaysia) Sdn. Bhd.
Reliance Eagleford Midstream LLC
Reliance Eagleford Upstream GP LLC
Reliance Eagleford Upstream Holding LP
Reliance Eagleford Upstream LLC
Reliance Ethane Holding Pte. Limited
Reliance Exploration & Production DMCC
Reliance Global Business B.V.
Reliance Global Energy Services (Singapore) Pte.
Limited
Net Assets i.e. Total Assets minus
Total Liabilities
As % of
consolidated
Net Assets
Amount
(` in crore)
Share in
Profit or Loss
As % of
consolidated
Profit or Loss
Amount
(` in crore)
0.00
0.11
0.00
0.01
0.03
(0.00)
(0.00)
1.40
0.01
0.15
(0.00)
0.16
(0.09)
-
0.00
0.00
-
0.04
0.07
0.07
0.07
0.07
0.06
0.09
0.17
0.25
0.06
0.00
0.08
0.12
0.04
0.19
0.39
2.26
0.00
(4.19)
0.00
0.39
0.20
0.16
0.01
6.42
293.87
0.09
28.45
80.46
(1.59)
(0.51)
3,697.15
13.86
383.00
(0.41)
412.51
(239.88)
-
0.00
0.00
-
105.31
187.16
175.09
171.72
179.50
169.90
232.36
459.51
655.37
152.62
9.17
219.20
328.12
113.67
497.32
1,020.24
5,952.54
0.07
(11,039.85)
0.13
1,027.16
522.00
422.83
16.79
0.00
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
0.34
(0.51)
(0.00)
(0.00)
(0.03)
0.02
-
-
(0.00)
(0.01)
(0.00)
0.03
0.02
0.01
0.00
0.01
(0.00)
0.14
0.11
0.03
(0.00)
0.55
0.03
(0.07)
0.17
(0.46)
(0.00)
(0.00)
(5.00)
(5.19)
0.00
(0.08)
0.04
(0.13)
0.16
(0.00)
(0.01)
(0.01)
(0.02)
0.03
(0.01)
101.46
(152.76)
(0.00)
(0.01)
(8.29)
6.42
-
-
(0.27)
(1.96)
(0.01)
9.08
7.33
4.22
0.71
2.40
(0.00)
40.42
31.59
7.78
(0.93)
164.04
8.06
(20.83)
50.28
(136.57)
(0.68)
(0.14)
(1,495.50)
(1,551.00)
(0.65)
(24.18)
11.16
(39.10)
Share in
Other Comprehensive Income
Amount
(` in crore)
As % of
consolidated
Other
Comprehensive
Income
-
-
-
-
-
-
-
(0.11)
(0.02)
-
-
Share in
Total Comprehensive Income
As % of
consolidated
Total
Comprehensive
Income
0.00
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
0.31
(0.48)
(0.00)
(0.00)
(0.03)
0.02
-
-
0.00
(0.01)
0.06
0.03
0.02
0.01
0.00
0.01
(0.00)
0.27
0.10
0.02
(0.00)
0.52
0.03
(0.07)
0.16
(0.33)
(0.00)
(0.00)
(4.71)
(4.89)
(0.00)
(0.08)
0.04
(0.12)
Amount
(` in crore)
0.16
(0.00)
(0.01)
(0.01)
(0.02)
0.03
(0.01)
99.53
(153.13)
(0.00)
(0.01)
(8.29)
6.42
-
-
0.95
(1.96)
18.04
9.08
7.33
4.22
0.71
2.40
(0.00)
85.99
31.59
7.78
(0.93)
164.04
8.06
(20.83)
50.28
(104.07)
(0.68)
(0.14)
(1,495.50)
(1,551.00)
(0.65)
(24.18)
11.16
(39.10)
-
-
-
-
-
-
-
(1.93)
(0.37)
-
-
-
-
-
-
1.22
-
18.05
-
-
-
-
-
-
45.57
-
-
-
-
-
-
-
32.50
-
-
-
-
-
-
-
-
-
-
-
-
0.07
-
0.99
-
-
-
-
-
-
2.50
-
-
-
-
-
-
-
1.78
-
-
-
-
-
-
-
-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 Share in
Other Comprehensive Income
Amount
(` in crore)
Name of the Enterprise
Net Assets i.e. Total Assets minus
Total Liabilities
As % of
consolidated
Net Assets
Amount
(` in crore)
Share in
Profit or Loss
As % of
consolidated
Profit or Loss
Amount
(` in crore)
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
Reliance Global Energy Services Limited
Reliance Holding USA, Inc.
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 II LLC
Reliance Marcellus LLC
RIL (Australia) Pty Limited
RIL Exploration and Production (Myanmar) Company
Limited
RIL USA, Inc.
RP Chemicals (Malaysia) Sdn. Bhd.
Television Eighteen Mauritius Limited
Television Eighteen Media and Investments Limited
Wave Land Developers Limited
Web18 Holdings Limited
0.00
(2.74)
0.97
0.01
0.24
0.01
0.08
(0.47)
(2.16)
0.00
0.00
0.15
(0.39)
0.01
0.10
-
0.09
8.82
(7,221.17)
2,550.31
23.23
643.73
24.37
215.32
(1,246.49)
(5,693.34)
0.00
0.52
396.96
(1,022.23)
24.67
275.87
-
224.28
0.00
(20.31)
0.27
0.00
0.00
(0.00)
(0.01)
(0.55)
(2.50)
0.00
(0.00)
0.43
(0.57)
0.00
(0.02)
(0.00)
(0.00)
1.29
(6,073.31)
80.15
0.75
0.00
(0.17)
(2.65)
(165.74)
(747.18)
0.15
(0.00)
127.70
(171.25)
0.01
(6.13)
(0.81)
(0.13)
As % of
consolidated
Other
Comprehensive
Income
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
409
Share in
Total Comprehensive Income
As % of
consolidated
Total
Comprehensive
Income
0.00
(19.14)
0.25
0.00
0.00
(0.00)
(0.01)
(0.52)
(2.36)
0.00
(0.00)
0.40
(0.54)
0.00
(0.02)
(0.00)
(0.00)
Amount
(` in crore)
1.29
(6,073.31)
80.15
0.75
0.00
(0.17)
(2.65)
(165.74)
(747.18)
0.15
(0.00)
127.70
(171.25)
0.01
(6.13)
(0.81)
(0.13)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Non Controlling Interest in all subsidiaries
(1.11)
(2,917.02)
0.23
68.00
(0.25)
(4.49)
0.20
63.51
24 X 7 Learning Private Limited
Aeon Learning Private Limited
Big Tree Entertainment Private Limited
Dyulok Technologies Private Limited
Eenadu Television Private Limited
Fantain Sports Private Limited
Gaurav Overseas Private Limited
GenNext Ventures Investment Advisers LLP
Gujarat Chemical Port Terminal Company Limited
Indian Vaccines Corporation Limited
Reliance Brands Luxury Private Limited
Reliance Industrial Infrastructure Limited
Reliance Luxury Fashion Private Limited
Spacebound Web Labs Private Limited
Vayana Private Limited
Associates (Investments as per the equity method)
Indian
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Foreign
1
2
3
4
5
Algenol LLC
Big Tree Entertainment Singapore Pte. Limited
Matrix Genetics LLC
PT Big Tree Entertainment Indonesia
Reliance Europe Limited
-
-
0.08
0.00
0.10
0.00
0.00
0.00
0.07
0.00
-
0.06
0.00
(0.00)
0.01
0.00
0.00
-
0.00
0.01
-
-
209.47
1.34
274.23
0.32
0.19
0.25
197.52
0.60
-
171.00
0.01
(0.07)
22.73
0.89
5.25
-
1.00
33.37
-
-
(0.17)
-
0.05
(0.00)
0.00
0.00
0.13
(0.00)
-
0.02
(0.00)
(0.00)
(0.00)
(0.27)
(0.00)
(0.01)
(0.01)
0.00
-
-
(50.17)
-
15.71
(0.28)
0.00
0.01
39.08
(0.32)
-
7.46
(0.02)
(0.17)
(0.36)
(79.68)
(0.07)
(2.57)
(3.79)
0.60
-
-
0.02
-
(0.00)
-
0.00
-
-
-
-
0.07
-
-
-
(0.00)
-
-
-
-
-
-
0.35
-
(0.04)
-
0.00
-
-
-
-
1.28
-
-
-
(0.00)
-
-
-
-
-
-
(0.16)
-
0.05
(0.00)
0.00
0.00
0.12
(0.00)
-
0.03
(0.00)
(0.00)
(0.00)
(0.25)
(0.00)
(0.01)
(0.01)
0.00
-
-
(49.82)
-
15.67
(0.28)
0.00
0.01
39.08
(0.32)
-
8.74
(0.02)
(0.17)
(0.36)
(79.68)
(0.07)
(2.57)
(3.79)
0.60
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 410
Name of the Enterprise
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
Jio Payments Bank Limited
Marks and Spencer Reliance India 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
Joint Ventures (Investments as per the equity method)
Indian
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Foreign
1
2
3
4
5
IndiaCast UK Limited
IndiaCast US Limited
Roptonal Limited
Viacom18 Media (UK) Limited
Viacom18 US Inc.
Net Assets i.e. Total Assets minus
Total Liabilities
As % of
consolidated
Net Assets
Amount
(` in crore)
Share in
Profit or Loss
As % of
consolidated
Profit or Loss
Amount
(` in crore)
Share in
Other Comprehensive Income
Amount
(` in crore)
As % of
consolidated
Other
Comprehensive
Income
Share in
Total Comprehensive Income
Amount
(` in crore)
As % of
consolidated
Total
Comprehensive
Income
0.00
0.00
0.00
0.00
0.00
0.01
0.05
0.00
0.02
0.03
0.05
0.00
0.00
0.01
0.00
0.00
0.00
0.22
0.00
0.00
0.00
0.06
(0.00)
(0.00)
11.64
0.45
9.78
0.13
13.17
38.95
122.81
4.99
53.42
84.03
144.98
3.92
6.87
17.37
5.63
2.68
6.23
584.03
0.87
3.10
1.85
159.68
(1.82)
(3.92)
(0.01)
0.00
(0.01)
(0.15)
0.01
0.01
0.02
0.00
0.00
(0.03)
(0.01)
(0.00)
(0.00)
(0.02)
(0.01)
(0.00)
0.00
0.05
(0.01)
0.00
0.00
(0.00)
(0.00)
(0.00)
(3.70)
1.16
(3.78)
(46.32)
2.44
2.48
4.74
0.58
0.53
(8.37)
(2.03)
(1.12)
(0.74)
(5.43)
(1.72)
(0.20)
0.86
15.31
(1.88)
1.38
0.49
(0.52)
(0.10)
(0.10)
0.00
-
0.00
-
(0.00)
-
(0.00)
-
(0.00)
-
(0.07)
0.00
-
0.00
-
-
0.00
(0.06)
-
-
-
-
-
-
-
0.04
-
0.01
-
(0.05)
-
(0.02)
-
(0.08)
-
(1.23)
0.01
-
0.09
-
-
0.03
(1.15)
-
-
-
-
-
-
-
(0.01)
0.00
(0.01)
(0.15)
0.01
0.01
0.01
0.00
0.00
(0.03)
(0.01)
(0.00)
(0.00)
(0.02)
(0.01)
(0.00)
0.00
0.04
(0.01)
0.00
0.00
(0.00)
(0.00)
(0.00)
(3.66)
1.16
(3.77)
(46.32)
2.39
2.48
4.72
0.58
0.45
(8.37)
(3.26)
(1.11)
(0.74)
(5.34)
(1.72)
(0.20)
0.89
14.16
(1.88)
1.38
0.49
(0.52)
(0.10)
(0.10)
(in `)
40.
DETAILS OF SPECIFIED BANK NOTES (SBN) HELD AND TRANSACTED DURING THE PERIOD 08TH NOV, 2016 TO
30TH DEC, 2016 IN RESPECT OF THE HOLDING COMPANY AND ITS INDIAN SUBSIDIARIES ARE AS UNDER:
Closing cash in hand as on 08th Nov, 2016
(+) Permitted receipts
(-) Permitted payments
(-) Amount deposited in Banks
Closing cash in hand as on 30th Dec, 2016
SBNs Other Denomination Notes
96,09,85,500
-
14,000
96,09,71,500
-
11,86,64,037
10,46,07,43,271
9,50,70,135
10,03,70,38,744
44,72,98,429
Total
1,07,96,49,537
10,46,07,43,271
9,50,84,135
10,99,80,10,244
44,72,98,429
41. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved for issue by the Board of Directors on April 24, 2017.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 411
42.
FIRST TIME IND AS ADOPTION RECONCILIATIONS
42.1 Effect of Ind AS adoption on the Consolidated Balance Sheet as at 31st March, 2016 and 1st April, 2015:
As at 31st March, 2016
As at 1st April, 2015
Previous
GAAP
Effect of
transition
to Ind AS
As per Ind
AS Balance
Sheet
Previous
GAAP
Effect of
transition
to Ind AS
As per Ind
AS Balance
Sheet
(` in crore)
1,07,781
1,74,831
5,251
61,999
75,111
37,005
682
16,967
50,044
(4,434)
(997)
(39,168)
(16,811)
4,507
1,350
(2,906)
1,57,825
1,70,397
4,254
22,831
58,300
41,512
2,032
14,061
99,198
1,06,256
4,397
52,863
60,206
25,437
2,151
17,401
47,045
(3,820)
(926)
(34,555)
(19,588)
3,514
113
(1,223)
1,46,243
1,02,436
3,471
18,308
40,618
28,951
2,264
16,178
4,79,627
(8,415)
4,71,212
3,67,909
(9,440)
3,58,469
46,964
(478)
46,486
53,248
(4)
53,244
39,928
4,897
11,197
6,435
2,470
14,696
1,26,587
6,06,214
2,575
(432)
(169)
(5,594)
3,647
1,649
1,198
(7,217)
42,503
4,465
11,028
841
6,117
16,345
51,014
5,315
12,545
4,306
4,127
6,022
1,27,785
5,98,997
1,36,577
5,04,486
1,407
(413)
(188)
(3,864)
1,583
2,451
972
(8,468)
52,421
4,902
12,357
442
5,710
8,473
1,37,549
4,96,018
2,948
2,40,703
3,254
-
(12,095)
102
2,948
2,28,608
3,356
2,943
2,15,556
3,038
-
(9,779)
275
2,943
2,05,777
3,313
1,42,000
2,439
13,310
1,869
13,821
1,73,439
(353)
(190)
-
(638)
6,673
5,492
1,41,647
2,249
13,310
1,231
20,494
1,78,931
1,20,777
1,703
7,388
1,554
12,974
1,44,396
(324)
(155)
-
(543)
6,230
5,208
1,20,453
1,548
7,388
1,011
19,204
1,49,604
ASSETS
Non-Current Assets
Property, Plant and Equipment
Capital Work-in-Progress
Goodwill
Intangible Assets
Intangible Assets Under Development
Financial Assets
Investments
Loans
Other Non-Current Assets
Total Non-Current Assets
Current Assets
Inventories
Financial Assets
Investments
Trade Receivables
Cash and Cash Equivalents
Loans
Other Financial Assets
Other Current Assets
Total Current Assets
Total Assets
EQUITY AND LIABILITIES
Equity
Equity Share Capital
Other Equity
Non Controlling Interest
Liabilities
Non-Current Liabilities
Financial Liabilities
Borrowings
Other Financial Liabilities
Deferred Payment Liabilities
Provisions
Deferred Tax Liabilities (Net)
Total Non-Current Liabilities
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
412
As at 31st March, 2016
As at 1st April, 2015
Previous
GAAP
Effect of
transition
to Ind AS
As per Ind
AS Balance
Sheet
Previous
GAAP
Effect of
transition
to Ind AS
As per Ind
AS Balance
Sheet
(` in crore)
Current Liabilities
Financial Liabilities
Borrowings
Trade Payables
Other Financial Liabilities
Other Current Liabilities
Provisions
Total Current Liabilities
Total Liabilities
Total Equity and Liabilities
23,954
61,252
85,441
13,587
1,636
1,85,870
3,59,309
6,06,214
(409)
(956)
4,092
(3,582)
139
(716)
4,776
(7,217)
23,545
60,296
89,533
10,005
1,775
1,85,154
3,64,085
5,98,997
27,965
59,407
40,209
5,580
5,392
1,38,553
2,82,949
5,04,486
(323)
(859)
2,701
(2,165)
(3,526)
(4,172)
1,036
(8,468)
42.2 Reconciliation of Profit and Other Equity between Ind AS and Previous GAAP:
27,642
58,548
42,910
3,415
1,866
1,34,381
2,83,985
4,96,018
(` in crore)
Sr No Nature of Adjustments
Notes
Net Profit
Year ended
31st March, 2016
Other Equity
As at
31st March, 2016
As at
1st April, 2015
1
2
3
4
5
6
Net Profit / Other Equity as per Previous Indian GAAP
Change in accounting policy for Oil & Gas Activity - From
Full Cost Method (FCM) to Successful Efforts Method (SEM)
Fair valuation as deemed cost for Property, Plant and
Equipment and Intangible Assets Under Development
Fair Valuation for Financial Assets
Deferred Tax
Proposed Dividend including tax
Others
Total
Net Profit before OCI / Other Equity as per Ind AS
*
Includes share application money pending allotment
I
II
III
IV
V
Notes:
27,630
(1,277)
2,40,703*
(39,682)
2,15,556
(37,564)
4,150
32,074
28,540
(180)
(361)
-
(217)
2,115
29,745
3,780
(7,582)
-
(685)
(12,095)
2,28,608
3,021
(7,233)
3,559
(102)
(9,779)
2,05,777
I
II
Change in accounting policy for Oil & Gas Activity – From Full cost method (FCM) to Successful Efforts Method (SEM):
The impact on account of change in accounting policy from FCM to SEM is recognised in the Opening Reserves on the
date of transition and consequential impact of depletion and write off’s are recognized in the Statement of Profit and
Loss. Major differences impacting such change of accounting policy are in the areas of;
-
-
Expenditure on surrendered blocks, unproved wells and abandoned wells, which have been expensed under SEM.
Depletion on producing property in SEM is calculated using Proved Developed Reserve, as against Proved Reserve
in FCM.
Fair valuation as deemed cost for Property, Plant and Equipment and Intangible Assets Under Development:
The Company and it subsidiaries have considered fair value for property, viz. land admeasuring over 33,000 acres, situated
in India, with an impact of ` 51,188 crore, telecom assets with an impact of ` (11,988) crore, gas producing wells in USA
Shale region with an impact of ` (6,426) crore and petrochemical assets of Recron (Malaysia) Sdn. Bhd. with an impact of
` (700) crore as on 31st March, 2016, in accordance with stipulations of Ind AS 101 with the resultant impact being
accounted for in the reserves. The consequential impact on depletion and reversal of impairment are reflected in the
Statement of Profit and Loss.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 2017FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
413
III
IV
V
Fair valuation for Financial Assets:
The Company has valued financial assets (other than Investment in Subsidiaries, Associate and Joint Ventures which are
accounted at cost), at fair value. Impact of fair value changes as on the date of transition, is recognised in the opening
reserves and changes thereafter are recognised in the Statement of Profit and Loss or Other Comprehensive Income, as
the case may be.
Deferred Tax:
The impact of transition adjustments together with Ind AS mandate using the balance sheet approach (against profit
and loss approach in the previous GAAP) for computation of deferred taxes which has resulted in charge to the Reserves,
on the date of transition, with consequential impact to the Statement of Profit and Loss for the subsequent periods.
Others:
Other adjustments primarily comprise of :
a.
b.
Attributing time value of money to Assets Retirement Obligation: Under Ind AS, such obligation is recognised
and measured at present value. Under previous Indian GAAP it was recorded at cost. The impact for the periods
subsequent to the date of transition is reflected in the Statement of Profit and Loss.
Loan processing fees / transaction cost: Under Ind AS such expenditure are considered for calculating effective
interest rate. The impact for the periods subsequent to the date of transition is reflected in the Statement of Profit
and Loss.
42.3 Effect of Ind AS adoption on the Consolidated Statement of Profit and Loss for the year ended 31st March, 2016:
(` in crore)
As per Ind AS
Statement of
Profit and Loss
Effect of
transition to
Ind AS
Previous
GAAP
INCOME
Revenue from Operations
Sale of Products
Income from Services
Other Income
Total Income
EXPENDITURE
Cost of Materials Consumed
Purchase of Stock-in-Trade
Changes in Inventories of Finished Goods, Work-in-
Progress and Stock-in-Trade
Excise Duty and Service Tax
Employee Benefits Expense
Finance Costs
Depreciation / Amortisation and Depletion Expense
Other Expenses
Total Expenses
Profit before Share of Profit/(Loss) of Associates and Joint
Ventures and Tax
Share of Profit / (Loss) of Associates and Joint Ventures
Profit before Tax
Tax Expenses
Current Tax
Deferred Tax
Profit for the Year
Add: Share of (Profit) transferred to Non Controlling Interest
Profit for the Year (After Non Controlling Interest)
2,86,576
9,515
2,96,091
8,035
3,04,126
1,58,186
28,297
2,571
19,547
7,724
3,608
12,916
35,509
2,68,358
35,768
211
35,979
8,073
191
27,715
(85)
27,630
(824)
(1,969)
(2,793)
4,018
1,225
13
(242)
(11)
(248)
(317)
83
(1,351)
565
(1,508)
2,733
25
2,758
(31)
643
2,146
(31)
2,115
2,85,752
7,546
2,93,298
12,053
3,05,351
1,58,199
28,055
2,560
19,299
7,407
3,691
11,565
36,074
2,66,850
38,501
236
38,737
8,042
834
29,861
(116)
29,745
Consolidated Financial StatementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH, 201702-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
414
ANNEXURE “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES/ASSOCIATES/JOINT VENTURES AS
PER COMPANIES ACT, 2013
PART “A” : SUBSIDIARIES
Name of Subsidiary Company
Sr.
No.
Affinity Names Inc.#
The date since
which Subsidiary
was acquired
26.03.2012
1
2
3
4
5
6
7
8
9
Aurora Algae Inc.#
21.04.2015
Aurora Algae Pty Limited#
21.04.2015
Aurora Algae RGV LLC.#
21.04.2015
Central Park Enterprises DMCC#
17.12.2009
Cluster Commercial
Private Limited
12.01.2017
Delta Corp East Africa Limited
20.06.2012
Devashree Commercials Private
Limited
12.01.2017
Dignity Mercantile Private Limited
12.01.2017
10
Ethane Crystal LLC
10.09.2014
11
Ethane Emerald LLC
10.09.2014
12
Ethane Opal LLC
10.09.2014
13
Ethane Pearl LLC
10.09.2014
14
Ethane Sapphire LLC
10.09.2014
15
Ethane Topaz LLC
10.09.2014
16
Gapoil (Zanzibar) Limited#^
01.08.2007
17
Gapco Kenya Limited#^
01.08.2007
18
Gapco Tanzania Limited#^
01.08.2007
Reporting
Currency
Equity Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue from
Operations /
Total Income
Profit Before
Taxation
Provision for
Taxation
Profit After
Taxation
Other
Comprehensive
Income
Total
Comprehensive
Income
Proposed
Dividend
% of
Shareholding*
` in crore
Foreign Currencies in Million
INR
USD
INR
USD
INR
AUD
INR
USD
INR
USD
INR
INR
KSH
INR
INR
INR
USD
INR
USD
INR
USD
INR
USD
INR
USD
INR
USD
INR
TZS
INR
KSH
INR
TZS
0.00
0.00
418.21
61.57
1.03
0.21
-
-
-
0.00
1.91
0. 79
12.49
13.90
4.32
798.30
123.10
787.08
121.37
799.54
123.29
808.74
124.71
795.84
122.72
788.77
121.63
20.16
0.00
0.00
5.70
0.84
240.91
49.12
-
-
-
0.00
2.05
0.79
12.49
13.91
4.32
611.14
94.24
611.99
94.37
627.82
96.81
629.24
97.03
625.94
96.52
556.41
85.80
10.99
1.70
0.25
473.17
69.66
30.31
6.18
-
-
0.68
0.10
0.01
-
-
(1.70)
(0.25)
(60.66)
(8.93)
(270.19)
(55.09)
-
-
(0.68)
(0.10)
(0.15)
-
-
0.01
(0.02)
(0.01)
9.08
1.40
7.26
1.12
4.15
0.64
0.71
0.11
2.33
0.36
(0.06)
(0.01)
7.57
0.01
178.08
27.46
167.83
25.88
167.57
25.84
178.79
27.57
167.57
25.84
232.42
35.84
1.60
500.00
96.67
2,365.04
6,298.46
3,433.42
362.84
893.57
434.05
1,459.54
5,478.05
13,490.84
6,553.25
95.71
559.65
870.07
214.71
29,910.00
1,74,892.00
2,71,898.00
67,096.00
-
-
40.14
5.91
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.14
0.02
7.75
1.58
-
-
-
-
0.31
(0.02)
(0.24)
-
-
20.49
3.16
14.46
2.23
3.63
0.56
8.04
1.24
2.40
0.37
-
-
0.08
26.26
-
-
(8.29)
(1.22)
6.42
1.31
-
-
(0.27)
(0.04)
(0.14)
(1.96)
(31.11)
(0.00)
(0.00)
9.08
1.40
7.33
1.13
4.22
0.65
0.71
0.11
2.40
0.37
(0.00)
(0.00)
(1.29)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.36)
-
-
(8.29)
(1.22)
6.42
1.31
-
-
(0.27)
(0.04)
(0.14)
(1.96)
(31.11)
(0.00)
(0.00)
9.08
1.40
7.33
1.13
4.22
0.65
0.71
0.11
2.40
0.37
(0.00)
(0.00)
(0.93)
(404.59)
(113.06)
(291.53)
4,851.12
60.09
73,240.98
907.15
920.92
41.44
19.67
296.91
9.85
40.42
610.24
31.59
2,87,787.00
12,950.00
3,077.00
9,873.00
-
-
-
-
-
-
-
-
1.22
0.18
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45.57
-
-
(8.29)
(1.22)
6.42
1.31
-
-
0.95
0.14
(0.14)
(1.96)
(31.11)
(0.00)
(0.00)
9.08
1.40
7.33
1.13
4.22
0.65
0.71
0.11
2.40
0.37
(0.00)
(0.00)
(0.93)
(291.53)
85.99
688.08
1,298.32
-
-
31.59
9,873.00
-
-
-
-
-
-
-
-
-
-
-
2.38
37.82
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
100.00
100.00
100.00
100.00
58.80
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
76.00
76.00
76.00
As on 31.12.2016:1EUR = 71.6575, 1US$ = 67.9250, 1GBP = 83.4625, 1Au$ = 49.0450, 1RM = 15.1425, 1KSH = 0.66235, 1TZS = 0.0320, 1USH = 0.0191
As on 31.03.2017:1EUR = 69.2925, 1US$ = 64.8500, 1GBP = 80.9025, 1Au$ = 49.5775, 1KSH = 0.629925, 1SGD = 46.4125
*
#
^
Based on effective shareholding of Equity and Convertible Preference Shares.
Company having 31st December as a reporting date.
Ceased to be Subsidiary as on March 31, 2017.
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 ANNEXURE “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES/ASSOCIATES/JOINT VENTURES AS
PER COMPANIES ACT, 2013
415
Reporting
Currency
Equity Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue from
Operations /
Total Income
Profit Before
Taxation
Provision for
Taxation
Profit After
Taxation
Other
Comprehensive
Income
Total
Comprehensive
Income
Proposed
Dividend
% of
Shareholding*
` in crore
Foreign Currencies in Million
Sr.
No.
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Name of Subsidiary Company
Gapco Uganda Limited#^
Girisha Commercials Private
Limited
Gulf Africa Petroleum
Corporation#^
Indiawin Sports Private Limited
Jio Payments Bank Limited
Kanhatech Solutions Limited
The date since
which Subsidiary
was acquired
01.08.2007
12.01.2017
01.08.2007
07.04.2010
10.11.2016
01.08.2008
Model Economic Township Limited
09.10.2006
Recron (Malaysia) Sdn. Bhd.#
20.07.2007
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 Dealers
Limited
Reliance Commercial Land &
Infrastructure Limited
Reliance Commercial Trading
Private Limited
04.06.2012
31.03.2009
30.12.2009
12.10.2007
30.12.2009
26.09.2013
10.01.2017
30.03.2009
10.01.2017
Reliance Comtrade Private Limited
31.03.2009
Reliance Corporate IT Park Limited
30.03.2009
Reliance Eagleford Midstream LLC#
16.06.2010
Reliance Eagleford Upstream
GP LLC#
Reliance Eagleford Upstream
Holding LP#
17.06.2010
17.06.2010
INR
USH
INR
INR
USD
INR
INR
INR
INR
INR
RM
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
USD
INR
USD
INR
USD
16.71
135.91
175.19
22.57
8,750.10
71,157.15
91,726.04
11,818.79
0.01
(0.01)
2.45
2.45
-
-
-
259.60
8.49
0.71
7.78
1,35,914.34
4,444.68
371.09
4,073.59
0.28
0.01
-
0.01
298.59
347.03
191.07
183.13
19.09
164.04
149.44
22.00
2.65
132.00
75.00
97.00
822.22
542.99
1.40
69.76
10.27
204.28
(11.96)
(4.58)
517.79
76.23
255.98
122.28
79.41
43.96
49.05
2.24
8.99
4,142.09
6,593.22
2,354.13
198.02
130.77
(1.34)
3,035.07
2,014.83
2,004.34
1,330.58
0.06
-
1.00
777.30
787.66
9.36
51.09
77.56
121.57
0.39
0.04
-
-
-
-
28.13
199.00
8.24
0.18
41.22
26.96
(2.56)
(11.96)
(0.88)
(7.92)
4,472.40
(162.31)
2,953.54
(107.19)
0.12
(0.00)
2.81
0.01
-
-
(1.23)
(25.74)
(17.00)
-
24.15
(2.57)
(11.96)
(0.88)
(6.69)
(136.57)
(90.19)
(0.00)
0.02
(1.20)
0.04
(1.24)
1.01
2,779.06
2,780.07
0.00
2,780.06
0.02
(0.08)
-
(0.08)
101.07
396.60
609.69
112.02
242.30
283.83
(28.77)
(10.70)
(18.07)
1.01
0.05
2,603.92
2,604.95
0.02
2,604.91
(13.37)
46.92
60.24
-
0.02
35.70
(0.21)
(7.66)
-
-
(0.21)
(7.66)
53.01
4,282.25
4,376.99
41.73
4,277.91
34.75
(0.51)
-
(0.51)
0.01
3.18
9.69
6.50
7.52
10.68
0.70
(0.16)
0.86
1.00
117.05
118.06
0.01
-
-
2,379.99
7,005.84
19,348.49
9,962.66
12.42
7,012.63
317.89
46.80
0.25
0.04
5,634.65
5,952.54
829.54
(0.18)
(0.03)
876.34
0.07
0.01
-
-
-
-
1,551.07
(12,590.92)
8,120.57
19,160.42
228.35
(1,853.65)
1,195.52
2,820.82
-
-
-
-
-
-
(0.01)
242.39
(0.68)
(0.10)
(0.14)
(0.02)
-
-
-
-
1,742.62
(1,495.50)
256.55
(220.17)
-
67.59
-
-
-
-
-
-
(0.01)
174.80
(0.68)
(0.10)
(0.14)
(0.02)
(1,495.50)
(220.17)
-
-
-
-
-
(0.00)
-
-
(0.49)
32.50
21.46
-
-
-
0.07
-
(0.01)
7.78
4,073.59
0.01
164.04
24.15
(2.57)
(11.96)
(0.88)
(7.18)
(104.07)
(68.73)
(0.00)
(1.24)
(0.08)
(18.00)
(0.21)
(7.67)
-
-
-
(6.71)
-
-
-
-
-
-
(0.51)
0.86
(0.01)
168.09
(0.68)
(0.10)
(0.14)
(0.02)
(1,495.50)
(220.17)
15.00
207.51
447.38
224.87
0.17
472.39
0.85
0.33
0.52
(0.31)
0.21
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
76.00
100.00
76.00
100.00
70.00
90.67
100.00
100.00
100.00
100.00
100.00
75.56
100.00
94.40
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
As on 31.12.2016:1EUR = 71.6575, 1US$ = 67.9250, 1GBP = 83.4625, 1Au$ = 49.0450, 1RM = 15.1425, 1KSH = 0.66235, 1TZS = 0.0320, 1USH = 0.0191
As on 31.03.2017:1EUR = 69.2925, 1US$ = 64.8500, 1GBP = 80.9025, 1Au$ = 49.5775, 1KSH = 0.629925, 1SGD = 46.4125
*
#
^
Based on effective shareholding of Equity and Convertible Preference Shares.
Company having 31st December as a reporting date.
Ceased to be Subsidiary as on March 31, 2017.
Consolidated Financial Statements02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 416
ANNEXURE “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES/ASSOCIATES/JOINT VENTURES AS
PER COMPANIES ACT, 2013
Name of Subsidiary Company
The date since
which Subsidiary
was acquired
Reporting
Currency
Equity Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue from
Operations /
Total Income
Profit Before
Taxation
Provision for
Taxation
Profit After
Taxation
Other
Comprehensive
Income
Total
Comprehensive
Income
Proposed
Dividend
% of
Shareholding*
` in crore
Foreign Currencies in Million
Sr.
No.
41
42
43
44
45
46
47
48
49
50
51
52
Reliance Eagleford Upstream LLC#
16.06.2010
Reliance Eminent Trading &
Commercial Private Limited
Reliance Energy and Project
Development Limited
Reliance Energy Generation and
Distribution Limited
Reliance Ethane Holding Pte.
Limited.
31.03.2009
30.12.2009
22.07.2010
04.09.2014
Reliance Exploration & Production
DMCC#
06.12.2006
Reliance Gas Pipelines Limited
Reliance Global Business B.V.
26.11.2012
04.04.2008
Reliance Global Commercial
Limited
Reliance Global Energy Services
(Singapore) Pte. Limited.
Reliance Global Energy Services
Limited
Reliance-GrandOptical Private
Limited
30.12.2009
18.08.2008
20.06.2008
17.03.2008
53
Reliance Holding USA, Inc.#
29.03.2010
54
55
56
57
58
Reliance Industrial Investments and
Holdings Limited
30.12.1988
Reliance Industries (Middle East)
DMCC#
11.05.2005
Reliance Innovative Building
Solutions Private Limited
Reliance Jio AsiaInfo Innovation
Centre Limited
Reliance Jio Digital Services
Private Limited
30.03.2015
10.06.2015
22.09.2014
59
Reliance Jio Global resources LLC#
15.01.2015
60
Reliance Jio Infocomm Limited
17.06.2010
INR
USD
INR
INR
INR
INR
USD
INR
USD
INR
INR
EUR
INR
INR
USD
INR
GBP
INR
INR
USD
INR
INR
USD
INR
INR
INR
INR
USD
INR
1,551.54
(1,551.41)
18,539.92
18,539.79
228.42
10.00
(228.40)
2,729.47
2,729.45
3,826.13
3,868.39
32.26
-
-
-
1,009.43
(1,551.00)
148.61
(228.34)
1.51
(12.96)
1.01
1,255.04
1,256.24
0.19
1,255.99
0.02
(0.08)
1.25
10,870.03
10,871.28
0.00
10,871.20
0.02
(0.47)
1,027.87
158.50
325.90
47.98
373.00
411.67
59.41
0.05
7.65
1.18
4.05
0.50
0.05
0.34
0.05
(0.71)
(0.11)
196.10
28.87
1,095.77
168.97
545.10
80.25
68.61
10.58
23.10
3.40
1,092.27
168.43
-
-
366.04
2,370.37
1,631.33
7.28
11.16
1.61
0.01
9.14
1.41
4.77
0.59
(0.03)
459.55
66.32
0.06
36.72
5.30
0.00
1,888.24
1,871.45
291.17
15.37
1.90
0.02
288.58
6.55
0.81
0.00
-
-
-
-
-
-
-
-
(7,221.51)
35,667.76
42,888.93
(1,063.16)
5,251.05
6,314.16
443.96
65.36
147.50
17,704.39
26,468.97
8,617.08
15,201.05
0.19
0.03
0.34
0.05
-
11.23
1.62
0.02
(0.65)
(0.10)
(24.18)
(3.56)
(0.08)
11.16
1.61
0.00
11,765.28
(43.13)
1,814.23
22.57
2.79
-
(6.65)
1.54
0.19
(0.00)
1,886.75
(6,073.31)
277.77
868.72
(894.12)
(19.26)
2,846.60
(296.29)
3,397.00
846.69
2,898.02
2,685.41
419.08
64.69
(43.62)
(46.73)
500.11
24.36
124.65
426.65
6.40
-
395.35
1.42
80.15
11.80
(1.93)
1.00
0.07
1.11
0.04
1.10
0.06
0.05
-
-
-
-
-
-
-
-
-
-
-
-
0.00
(4.02)
(0.62)
0.24
0.03
-
-
-
0.01
-
-
-
-
-
-
-
(1,551.00)
(228.34)
(12.96)
(0.08)
(0.47)
(0.65)
(0.10)
(24.18)
(3.56)
(0.08)
11.16
1.61
0.00
(39.10)
(6.03)
1.29
0.16
(0.00)
(6,073.31)
(894.12)
(19.27)
80.15
11.80
(1.93)
0.05
(1.55)
0.75
0.11
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
171.35
-
-
-
-
-
-
-
-
(1,551.00)
(228.34)
(12.96)
(0.08)
(0.47)
(0.65)
(0.10)
(24.18)
(3.56)
(0.08)
11.16
1.61
0.00
(39.10)
(6.03)
1.29
0.16
(0.00)
(6,073.31)
(894.12)
152.08
80.15
11.80
(1.93)
0.05
(1.55)
0.75
0.11
(31.37)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
100.00
100.00
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
99.44
99.44
10.00
(1.69)
554.83
546.52
20.38
3.00
2.85
0.42
23.98
3.53
0.75
0.11
-
-
-
45,000.00
25,864.39
2,00,888.41
1,30,024.02
873.06
1.02
(1.55)
0.75
0.11
59.84
8.81
0.02
(47.91)
(16.54)
(31.37)
As on 31.12.2016:1EUR = 71.6575, 1US$ = 67.9250, 1GBP = 83.4625, 1Au$ = 49.0450, 1RM = 15.1425, 1KSH = 0.66235, 1TZS = 0.0320, 1USH = 0.0191
As on 31.03.2017:1EUR = 69.2925, 1US$ = 64.8500, 1GBP = 80.9025, 1Au$ = 49.5775, 1KSH = 0.629925, 1SGD = 46.4125
*
#
Based on effective shareholding of Equity and Convertible Preference Shares.
Company having 31st December as a reporting date.
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 ANNEXURE “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES/ASSOCIATES/JOINT VENTURES AS
PER COMPANIES ACT, 2013
417
Reporting
Currency
Equity Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
` in crore
Foreign Currencies in Million
Profit Before
Taxation
Provision for
Taxation
Profit After
Taxation
Other
Comprehensive
Income
Total
Comprehensive
Income
Proposed
Dividend
% of
Shareholding*
Sr.
No.
61
Name of Subsidiary Company
Reliance Jio Infocomm Pte.
Limited#
The date since
which Subsidiary
was acquired
01.02.2013
62
Reliance Jio Infocomm UK Limited#
30.07.2013
63
Reliance Jio Infocomm USA Inc.#
05.06.2013
64
65
66
67
68
69
Reliance Jio Infratel Private Limited
17.02.2016
Reliance Jio Media Private Limited
02.01.2015
Reliance Jio Messaging Services
Private Limited
12.09.2013
Reliance Lifestyle Holdings Limited
31.03.2012
Reliance LNG Limited
Reliance Marcellus II LLC#
10.01.2017
28.06.2010
70
Reliance Marcellus LLC#
29.03.2010
71
72
73
74
75
76
77
78
79
80
81
82
83
84
Reliance Payment Solutions
Limited
07.09.2007
Reliance Petro Marketing Limited
31.03.2009
Reliance Petroinvestments Limited
30.12.2009
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
30.12.2009
31.03.2009
31.03.2009
31.03.2009
20.02.2007
20.11.2006
Reliance Retail Limited
20.11.2006
Reliance Retail Ventures Limited
24.04.2007
Reliance Sibur Elastomers Private
Limited
Reliance SMSL Limited@
Reliance Strategic Investments
Limited
21.02.2012
27.11.2007
28.12.2001
INR
USD
INR
GBP
INR
USD
INR
INR
INR
INR
INR
INR
USD
INR
USD
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
665.67
(21.94)
98.00
25.04
3.00
(3.23)
(0.67)
(0.08)
808.24
118.99
43.57
5.22
234.68
(19.36)
217.36
34.55
1.00
86.01
97.33
0.05
0.05
(2.85)
(0.21)
(0.78)
(2.17)
65.36
(0.01)
3,570.21
(4,816.70)
525.61
(709.12)
32.00
62.65
100.14
150.60
147.84
0.04
847.64
124.79
164.51
24.22
19.20
2.30
2.04
0.30
61.86
14.91
55.44
82.43
0.00
2,094.13
308.30
9,599.50
(15,292.84)
9,001.69
14,695.03
1,413.25
(2,251.43)
1,325.24
2,163.42
115.00
510.00
860.47
235.47
63.83
0.05
8.88
1.01
44.98
175.78
619.19
184.91
2,612.51
2,615.46
10.00
2,527.41
2,547.76
574.16
0.25
1.94
10.35
1.00
630.62
636.81
5.19
10.00
2,806.94
2,839.37
22.43
190.78
184.45
2,615.19
-
-
-
0.00
0.00
(0.17)
(0.02)
(2.65)
(0.39)
(0.18)
(0.07)
(1.10)
4.56
(0.00)
Revenue from
Operations /
Total Income
314.15
46.25
8.26
0.99
20.79
3.06
3.14
0.59
229.50
-
-
962.77
-
-
-
-
95.16
14.01
51.06
-
-
-
-
-
-
-
144.00
(165.74)
21.20
(24.40)
540.89
(747.18)
79.63
2.14
(110.00)
(35.33)
6,357.00
0.02
34.48
8.92
41.16
(0.72)
11.45
(18.73)
18.23
-
4.99
0.01
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00
0.00
(0.17)
(0.02)
(2.65)
(0.39)
(0.18)
(0.07)
(1.10)
4.56
(0.00)
(165.74)
(24.40)
(747.18)
(110.00)
(35.33)
22.93
(0.72)
6.46
(18.74)
0.05
(1.39)
0.00
(1.39)
3.82
(11.33)
0.01
(11.34)
2.02
4.00
99.91
8.73
101.97
13.25
0.04
0.52
101.96
7.51
0.07
15.20
0.05
1.09
0.03
0.38
0.02
0.71
4,989.54
6,000.00
619.53
0.05
2.02
1,830.03
11,672.42
4,852.85
826.28
26,861.94
752.82
310.22
442.60
(2.08)
440.52
(3.22)
10.28
5,997.12
1,525.28
0.34
5,939.05
16.07
895.47
17.84
-
0.02
(0.29)
-
1.23
0.02
(1.52)
-
-
0.02
(1.52)
(14.77)
130.36
145.08
-
1,213.78
1,864.96
3,839.56
1,972.58
298.72
940.28
(19.16)
663.39
(19.47)
239.47
0.31
423.92
13.84
-
14.15
423.92
-
-
-
-
-
-
-
-
-
(0.01)
-
-
-
-
-
(0.04)
5.11
-
4.11
-
-
-
-
(0.03)
0.00
0.00
(0.17)
(0.02)
(2.65)
(0.39)
(0.18)
(0.07)
(1.10)
4.55
(0.00)
(165.74)
(24.40)
(747.18)
(110.00)
(35.37)
28.04
(0.72)
10.57
(18.74)
(1.39)
(11.34)
0.02
0.68
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
99.44
99.44
99.44
100.00
100.00
100.00
75.56
90.00
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
As on 31.12.2016:1EUR = 71.6575, 1US$ = 67.9250, 1GBP = 83.4625, 1Au$ = 49.0450, 1RM = 15.1425, 1KSH = 0.66235, 1TZS = 0.0320, 1USH = 0.0191
As on 31.03.2017:1EUR = 69.2925, 1US$ = 64.8500, 1GBP = 80.9025, 1Au$ = 49.5775, 1KSH = 0.629925, 1SGD = 46.4125
*
#
@
Based on effective shareholding of Equity and Convertible Preference Shares.
Company having 31st December as a reporting date.
Formerly known as Strategic Manpower Solutions Limited.
Consolidated Financial Statements02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 418
ANNEXURE “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES/ASSOCIATES/JOINT VENTURES AS
PER COMPANIES ACT, 2013
Investments
Total
Liabilities
Revenue from
Operations /
Total Income
Profit Before
Taxation
Provision for
Taxation
Profit After
Taxation
Other
Comprehensive
Income
Total
Comprehensive
Income
Proposed
Dividend
% of
Shareholding*
` in crore
Foreign Currencies in Million
Reporting
Currency
Equity Share
Capital
Other Equity
136.93
(136.88)
0.05
1.05
0.05
(0.03)
0.83
0.01
Total
Assets
0.56
0.03
1.90
0.06
0.51
0.01
0.02
0.00
-
-
-
-
0.01
(0.10)
-
19.79
0.02
(0.01)
(0.21)
0.01
-
-
-
0.00
(0.10)
(0.01)
(0.21)
0.01
Sr.
No.
85
86
87
88
89
90
91
92
93
94
Name of Subsidiary Company
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
RIL Exploration and Production
(Myanmar) Company Limited
95
RIL USA, Inc.#
The date since
which Subsidiary
was acquired
27.03.2015
23.03.2015
12.10.2007
30.12.2009
27.09.2008
31.03.2009
27.12.2007
07.10.1999
12.09.2013
11.09.2015
26.02.2009
96
RIL(Australia) Pty Limited
07.06.2007
97
RP Chemicals (Malaysia) Sdn. Bhd. #
11.02.2016
98
Surela Investment and Trading
Private Limited
07.05.2012
99
Wave Land Developers Limited
15.03.2008
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
USD
INR
USD
INR
AUD
INR
RM
INR
INR
KSH
6.43
3,410.24
3,416.94
0.27
3,416.56
0.02
(0.34)
-
(0.34)
10.00
252.85
326.83
63.98
0.79
(1.82)
(0.98)
(0.84)
0.56
2.69
0.01
0.52
0.08
20.38
3.00
32.87
6.63
150.93
162.92
11.43
0.03
(2.82)
3,373.34
3,557.64
181.61
1,082.02
656.53
633.85
6,133.57
6,133.67
0.09
6,133.50
0.02
(1.03)
(0.00)
(0.00)
0.52
0.08
0.00
0.00
376.58
1,501.75
1,104.79
221.09
162.65
55.44
(32.87)
(6.63)
543.07
(1,565.30)
358.64
(1,033.71)
0.05
(0.56)
-
-
-
-
0.05
0.01
775.24
511.96
21.55
0.47
7.47
-
-
(0.00)
(0.00)
11,548.27
154.46
1,700.15
22.74
0.25
0.05
343.81
227.05
0.24
0.15
0.03
(171.20)
(113.06)
(0.01)
0.05
0.01
1,797.47
1,187.03
22.06
3.51
0.47
7.47
-
-
(0.61)
(9.64)
(0.69)
(11.03)
(0.35)
203.62
-
-
-
26.76
3.94
-
-
0.05
0.03
-
0.11
(1.80)
(2.47)
430.23
(1.03)
(0.00)
(0.00)
127.70
18.80
0.15
0.03
(171.25)
(113.09)
(0.01)
(0.81)
(12.83)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.10)
(0.01)
(0.21)
0.01
(0.34)
(0.84)
(2.47)
430.23
(1.03)
(0.00)
(0.00)
127.70
18.80
0.15
0.03
(171.25)
(113.09)
(0.01)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
(0.81)
11.51
(12.83)
182.68
100.00
As on 31.12.2016:1EUR = 71.6575, 1US$ = 67.9250, 1GBP = 83.4625, 1Au$ = 49.0450, 1RM = 15.1425, 1KSH = 0.66235, 1TZS = 0.0320, 1USH = 0.0191
As on 31.03.2017:1EUR = 69.2925, 1US$ = 64.8500, 1GBP = 80.9025, 1Au$ = 49.5775, 1KSH = 0.629925, 1SGD = 46.4125
*
#
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.
FINANCIAL STATEMENTSReliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17 419
ANNEXURE “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES/ASSOCIATES/JOINT VENTURES AS
PER COMPANIES ACT, 2013
Name of the Subsidiary which is yet to commence operations -
Sr.
No.
1.
Name of the Company
Aurora Algae RGV LLC.
Names of Subsidiaries which have been liquidated during the year -
Sr.
No.
1
2
3
4
Name of the Companies
GenNext Holding Investments LLC
Reliance do Brasil Indústria e Comércio de Produtos Têxteis, Químicos, Petroquímicos eDerivados Ltda.
Reliance Holding Acquisition Corp
Reliance USA Gas Marketing LLC
PART “B” : ASSOCIATES AND JOINT VENTURES
Statement pursuant to Section 129 (3) of the Companies Act , 2013 related to Associate Companies and Joint Ventures
Name of Associates/Joint Ventures
Sr.
No.
Associates
1
Gujarat Chemical Port Terminal Company Limited
Indian Vaccines Corporation Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Latest
audited
Balance
Sheet Date
The date on
which the
Associate
or Joint
Venture was
associated or
acquired
Shares of Associate/Joint Ventures held
by the company on the year end
No.
Extent of
Holding %
Amount of
Investment
in
Associates/
Joint Venture
(` in crore)
Net-worth
attributable
to
Shareholding
as per latest
audited
Balance
Sheet
(` in crore)
Profit/Loss for the year
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
31.03.2016
01.04.2006 64,29,20,000
31.03.2016
27.03.1989
31.12.2016
10.06.1993
31.03.2017
19.05.1994
62,63,125
11,08,500
68,60,064
64.29
0.61
3.93
16.30
41.80 %
33.33 %
50.00 %
45.43 %
197.52
0.60
33.37
171.04
39.08
(0.32)
0.60
7.46
-
-
-
-
Note - A
Note - A
Note - A
Note - A
-
-
-
-
2
3
4
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
Mumbai
Date : April 24, 2017
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
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
Nita M. Ambani
Raminder Singh Gujral
- Chairman & Managing Director
Executive Directors
Directors
Consolidated Financial Statements02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 420
SHAREHOLDERS’ REFERENCER
AN OVERVIEW
The Company has currently around 2.50 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 Market (NASDAQ, USA).
The Company’s Equity Shares are one of the most actively
traded securities on both BSE and NSE.
The Company’s Equity Shares are under compulsory
trading in demat form only.
98.01% of the Company’s Equity Shares are held in demat
form.
The Company's Registrars and Transfer Agents (R&TA) 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.
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
reviewed periodically by the Company.
Particulars
Service Standards
(No. of working days)
THE SERVICE STANDARDS SET BY THE COMPANY
TO RESPOND TO VARIOUS INVESTOR RELATED
TRANSACTIONS/ACTIVITIES ARE AS FOLLOWS:
Sr.
No.
(A) REGISTRATION ITEMS
1.
2.
3.
4.
5.
6.
7.
8.
Transfers
Transmissions
Transpositions
Deletion of Name
Folio Consolidation
Change of Name
Demat
Remat
3
3
3
3
3
3
3
3
Particulars
Sr.
No.
9.
10.
11.
12.
13.
14.
15.
Issue of Duplicate Certificates
Replacement of Certificates
Certificate Consolidation
Certificate Split
Change of Address
Bank Mandate/Details
Nomination by security holders
Recording Power(s) of Attorney
by security holders
(B) CORRESPONDENCE
1.
2.
16.
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 Related Matters
3.
4.
5.
6.
7.
8.
Service Standards
(No. of working days)
15
3
3
3
2
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 the 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
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
421
have to sign the instruction slips. Instruction cannot be
executed if all joint holders have not signed.
1.6 WHAT ARE THE OTHER SAFETY MEASURES AN
ONLINE CLIENT MUST OBSERVE?
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.
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.
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”
in 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.
Shareholders’ Referencer02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
422
Handle DIS Book issued by DPs carefully.
Insist that the DIS numbers are pre-printed and your
account number (client id) be pre-stamped.
In case you are not transacting frequently make use of
the freezing facilities provided for your demat account.
Pay the margins required to be paid in the time
prescribed.
Deliver the shares in case of sale or pay the money in
case of purchase within the time prescribed.
Participate and vote in general meetings either
personally or through proxy.
Be aware of your rights and responsibilities.
In case of complaints, approach the right authorities
for redressal in a timely manner.
DON’TS
Don’t undertake off-market transactions in securities.
Don’t deal with unregistered intermediaries.
Don’t fall prey to promises of unrealistic returns.
Don’t invest on the basis of hearsay and rumours;
verify before investment.
Don’t forget to take note of risks involved in the
investment.
Don’t be misled by rumours circulating in the market.
Don’t blindly follow media reports on corporate
developments, as some of these could be misleading.
Don’t follow the herd or play on momentum - it could
turn against you.
Don’t be misled by so called hot tips.
Don’t try to time the market.
Don’t hesitate to approach the proper authorities for
redressal of your doubts / grievances.
Don’t leave signed blank DISs of your demat account
lying around carelessly or with anyone.
Do not sign blank DIS and keep them with DP or
broker to save time. Remember your carelessness can
be your peril.
Do not keep any signed blank transfer deeds.
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.
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 despatch of Dividend Warrant
2.2 WHAT IS NATIONAL AUTOMATED CLEARING
HOUSE (NACH)?
The National Payments Corporation of India (NPCI) has
implemented an electronic payment service termed as
“National Automated Clearing House (NACH)” for banks,
financial institutions, Corporates and Government
Departments. It is a centralised system, launched with an
aim to consolidate multiple Electronic Clearing Systems
running across the country, and has both Debit and Credit
variants. NACH aims at facilitating inter-bank, high volume,
debit/credit transactions, which are bulk and repetitive
in nature. NACH system covers several 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.
Reliance Industries Limited Life is Beautiful. Life is Digital.SHAREHOLDERS’ REFERENCERIntegrated Annual Report 2016-17
423
2.4 WHAT ARE THE BENEFITS OF NACH (PAYMENT
THROUGH ELECTRONIC FACILITIES)?
Some of the major benefits are:
a.
b.
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.
c.
Fraudulent encashment of warrants is avoided.
d. Exposure to delays / loss in postal service are avoided.
e.
Issue of duplicate warrants is avoided as there can be
no loss in transit of warrants.
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
the format prescribed by the DP.
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.
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 or 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,
as the case may be. 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 execute an
indemnity before issuing the duplicate warrant.
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:
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.
(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 Core Banking
Solutions (CBS). This extends to all over the country, and
is not necessarily restricted to the designated centres
where payment can be handled through Electronic
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.
2.11WHY 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.
Shareholders’ Referencer02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
424
2.12 WHAT ARE THE PROVISIONS RELATING TO TAX
ON DIVIDEND?
The provisions relating to tax on dividend are provided for
ready reference of Shareholders:
Income by way of dividend in excess of ₹ 10 lakh shall
be chargeable to tax in the case of all the resident
assesses @ 10%, except the following:
A domestic company
A fund or institution or trust or university or
other educational institution or hospital or other
medical institution whose income is exempt
under section 10(23C) of the Income Tax Act
A trust or institution registered under section
12AA of the Income Tax Act
The taxation of dividend income in excess of ₹ 10 lakh is on
gross basis.
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%, that is, 20.36%.
2.13 WHAT ARE THE PROVISIONS RELATING TO TAX
ON TRANSACTION IN SHARES?
General:
Short Term Capital Gains (STCG) tax is payable in case
the shares are sold within 12 months from the date of
purchase @ 15% plus surcharge*:
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. However, exemption for income arising
on transfer of equity shares acquired on or after
October 1, 2004 shall be available only if acquisition
was charged to STT. In any other case, lower of the
following is payable as LTCG tax:
a)
b)
20% of the capital gain computed after
substituting ‘cost of acquisition’ with ‘indexed cost
of acquisition’ plus surcharge*; or
10% of the capital gain computed without
substituting ‘cost of acquisition’ with ‘indexed cost
of acquisition’ plus surcharge*.
Buy-back of shares:
Where any shareholder receives any consideration
from a company under a buy-back, the difference
between the cost of acquisition and the value of
consideration received by the shareholder will be
taxable under the Head “Capital Gains”.
STCG tax is payable @ 15% plus surcharge*, if the
shares are held for less than 12 months.
No LTCG tax is payable if buy-back is routed through
a recognised stock exchange, provided STT has been
paid and shares are held for a period of 12 months
or more. However, exemption for income arising
on transfer of equity shares acquired on or after
October 1, 2004 shall be available, only if acquisition
is chargeable to STT. In any other case, lower of the
following is payable as LTCG tax:
a)
b)
20% of the capital gain computed after
substituting ‘cost of acquisition’ with ‘indexed cost
of acquisition’ plus surcharge*; or
10% of the capital gain computed without
substituting ‘cost of acquisition’ with ‘indexed cost
of acquisition’ plus surcharge*.
Bonus Shares:
For computing Capital Gains, in an event of transfer of
bonus shares by a shareholder, the cost of acquisition
shall be taken as NIL.
STCG tax is payable @ 15% plus surcharge*, if such
bonus shares are held for less than 12 months.
No LTCG tax is payable if such bonus shares are sold
through a recognised stock exchange, provided STT
has been paid and bonus shares are held for a period
of more than 12 months. In any other case, lower of
the following is payable as LTCG tax:
a)
b)
20% of the capital gain computed after
substituting ‘cost of acquisition’ with ‘indexed cost
of acquisition’ plus surcharge*; or
10% of the capital gain computed without
substituting ‘cost of acquisition’ with ‘indexed cost
of acquisition’ plus surcharge*
If bonus shares are held as stock in trade, the shareholder
may take weighted average cost of the original and bonus
shares as the cost of bonus shares. In that case, the total
cost of the original and bonus shares will not change.
*
In case of an individual, Hindu Undivided Family, Association of
Persons, Body of Individuals, Artificial Judicial Person, in addition to
the education cess @ 2% and secondary higher education cess @ 1%,
surcharge @ 10% is payable for income exceeding ₹ 50 lakh but up to
₹ 1 crore and @ 15% for income exceeding ₹ 1 crore.
In case of a domestic company, together with education cess @ 2%
and secondary higher education cess @ 1%, surcharge @ 7% is payable
for income exceeding ₹ 1 crore but up to ₹ 10 crore, and @ 12% for
income exceeding ₹ 10 crore.
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
the Investor Education & Protection Fund.
Recommendations to the Shareholders / Investors
Register NACH Mandate and furnish correct bank
account particulars to Company’s R&TA/Depository
Participant (DP)
Reliance Industries Limited Life is Beautiful. Life is Digital.SHAREHOLDERS’ REFERENCERIntegrated Annual Report 2016-17
425
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 their DP. This would facilitate in receiving direct credits
of dividends, refunds etc., from companies and avoid postal
delays and loss in transit. Investors must update their new
bank account numbers allotted after implementation of
Core Banking Solution (CBS) to the Company’s R&TA in case
of shares held in physical form and to the DP in case of
shares held in demat form.
3. TRANSFER OF UNPAID / UNCLAIMED
DIVIDEND / SHARES IN THE NAME
OF INVESTOR EDUCATION AND
PROTECTION FUND (IEPF) AUTHORITY
3.1 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).
3.2 WHERE CAN THE STATUS OF UNCLAIMED
DIVIDEND NOT TRANSFERRED TO IEPF BE
VERIFIED?
The Company has uploaded the details of unpaid and
unclaimed amounts lying with the Company as on
September 1, 2016 (date of last Annual General Meeting)
on the website of the Company (Web-link: http://www.ril.
com/InvestorRelations/ShareholdersInformation.aspx) as
also on the Ministry of Corporate Affairs’ website (www.
mca.gov.in) which can be accessed by the shareholders for
this purpose.
3.3 WHAT IS THE STATUS OF UNPAID / UNCLAIMED
DIVIDEND FOR DIFFERENT YEARS?
The status of unclaimed and unpaid dividend of the
Company is captured in Chart 1 below:
Chart 1: Status of unclaimed and unpaid dividend for different years:
Unclaimed
Dividend up to financial
year 1994-95
Transfer of unpaid dividend Transferred to General
Claims for unpaid dividend
Revenue account of the
Central Government*
Can be claimed from IEPF
after complying with the
prescribed procedure under
the Companies Act, 2013
(the Act)
Unclaimed
Dividend for financial year
1995-96 to 2008-09
Transferred to Central
Government’s Investor
Education and Protection
Fund (IEPF)
Can be claimed from IEPF
after complying with the
prescribed procedure under
the Act
Unclaimed
Dividend for financial year
2009-10 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
* Pursuant to Section 125 of the Act, the amount in the general revenue account of the Central Government which had been transferred to that account under sub-
section (5) of section 205A of the Companies Act, 1956 and which has remained unpaid or unclaimed, stands credited to IEPF.
Chart 2: Information in respect of unclaimed and
unpaid dividends declared for the financial year
2009-10 and thereafter
Financial year
ended
March 31, 2010
March 31, 2011
March 31, 2012
March 31, 2013
March 31, 2014
March 31, 2015
March 31, 2016
Date of declaration
of dividend
June 18, 2010
June 3, 2011
June 7, 2012
June 6, 2013
June 18, 2014
June 12, 2015
March 10, 2016
Due date for
transfer to IEPF
July 24, 2017
July 9, 2018
July 13, 2019
July 12, 2020
July 24, 2021
July 18, 2022
April 15, 2023
3.4 WHAT ARE THE PROVISIONS RELATING TO
TRANSFER OF SHARES IN THE NAME OF IEPF
AUTHORITY? WHICH SHARES OF A COMPANY
ARE LIABLE TO BE TRANSFERRED IN THE NAME
OF IEPF AUTHORITY?
In accordance with Section 124(6) of the Act, 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 Authority.
However, shares in respect of which specific order of Court
or Tribunal or statutory Authority restraining any transfer
of such shares and payment of dividend is registered with
Shareholders’ Referencer02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
426
the company or shares which are pledged or hypothecated
under the provisions of the Depositories Act, 1996, shall
not be so transferred.
The voting rights on shares transferred in the name of
IEPF Authority shall remain frozen until the rightful owner
claims the shares.
Claim forms completed in all aspects are verified by the
company and on the basis of company’s verification
report, refund shall be released by IEPF Authority in
favour of the claimant’s Aadhaar linked bank account
through electronic transfer.
3.7 WHERE CAN A SHAREHOLDER / CLAIMANT
3.5 WHERE CAN THE DETAILS OF SHARES LIABLE
TO BE TRANSFERRED IN THE NAME OF IEPF
AUTHORITY BE VERIFIED?
Details of shares liable to be transferred in the name
of IEPF Authority are made available on the website
of the Company. Shareholders are advised to visit
the web-link: http://www.ril.com/InvestorRelations/
ShareholdersInformation.aspx to verify if any shares held
by them are liable to be transferred in the name of IEPF
Authority.
Further, the Company, three months before the due
date of transfer of shares, communicates individually the
concerned shareholders whose shares are liable to be
transferred in the name of IEPF Authority, by sending them
an intimation at their latest available address, informing
them about the dividend which has remained unpaid /
unclaimed for a period of seven consecutive years or more
and the eventuality leading to transfer of shares in the
name of IEPF Authority.
3.6 WHETHER SHARES / DIVIDEND TRANSFERRED
IN THE NAME OF IEPF AUTHORITY CAN BE
CLAIMED FROM IEPF AUTHORITY?
Yes. Shares transferred in the name of IEPF Authority
in pursuance of Section 124(6) of the Act as well as
dividend(s) transferred to IEPF in pursuance of Section
124(5) of the Act can be claimed from IEPF Authority.
3.6 WHAT IS THE PROCEDURE TO CLAIM SHARES
AND / OR DIVIDEND FROM IEPF AUTHORITY?
A claimant shall download form IEPF-5 from the website of
IEPF Authority (http://www.iepf.gov.in) for filing the claim (for
shares and / or dividend). It is advised to read the instructions
given in the help-kit carefully before filling the form.
After carefully filling information in form IEPF-5 and
attaching necessary documents, as prescribed in the
said form, the form shall be saved on computer and filed
electronically, free of cost, with IEPF Authority by uploading
the same on the link: http://www.mca.gov.in/mcafoportal/
showEformUpload.do. On successful uploading, an
acknowledgement will be generated indicating the SRN.
The said SRN shall be used for future tracking of the form.
After successfully filing / uploading, form IEPF-5 and the
acknowledgement issued shall be printed.
A claimant is required to submit indemnity bond in original,
copy of acknowledgement and self-attested copy of form
IEPF-5 along with the other documents as mentioned in
the form IEPF-5 to Nodal Officer (IEPF) of the company at its
registered office in an envelope marked “Claim for refund
from IEPF Authority”.
SUBMIT HIS / HER CLAIM FORM ETC. WITH THE
COMPANY?
A shareholder / claimant, claiming shares and / or
dividend amounts from the Company shall, after filing
form IEPF-5 with IEPF Authority electronically, submit the
necessary documents, as prescribed in form IEPF-5, to
the Company’s Nodal Officer. Details of Company’s Nodal
Officer are given below:
Shri Sandeep Deshmukh
Vice-President, Corporate Secretarial
Nodal Officer (IEPF)
Reliance Industries Limited
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai – 400 021
Recommendations to the Shareholders / Investors:
Shareholders / investors are advised to promptly encash
dividend amount(s) due to them. Details of shares liable
for transfer in the name of IEPF Authority / dividend
amounts to be transferred to IEPF are available on the
Company’s web-link: http://www.ril.com/InvestorRelations/
ShareholdersInformation.aspx, which the shareholders
/ investors are advised to visit to verify the details.
Shareholders / investors are also advised to contact Karvy
to claim dividend amounts unpaid / unclaimed, if any, for
the financial years from 2009-10 to 2015-16 so that their
dividend amounts / shares are not transferred in the name
of IEPF Authority.
4. DEMATERIALISATION/
REMATERIALISATION OF SHARES
4.1 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.
4.2 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.
4.3 WHAT ARE THE BENEFITS OF
DEMATERIALISATION?
Elimination of bad deliveries
Elimination of all risks associated with physical
certificates
No stamp duty on transfers
Reliance Industries Limited Life is Beautiful. Life is Digital.SHAREHOLDERS’ REFERENCERIntegrated Annual Report 2016-17
427
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
4.4 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.
4.5 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.
4.6 WHAT IS SMS ALERT FACILITY?
NSDL and CDSL provide 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.
4.7 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.
4.8 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).
4.9 WHAT IS THE PROCEDURE FOR
REMATERIALISATION OF SHARES?
Shareholders should submit the duly filled in
Rematerialisation Request Form (RRF) to the
concerned DP.
DP intimates the relevant Depository of such request.
DP submits RRF to the Company’s R&TA.
Depository confirms rematerialisation request to the
Company’s R&TA.
The Company’s R&TA updates accounts and prints
certificate(s) and informs the Depository.
Depository updates the Beneficiary Account of the
shareholder by deleting the shares so rematerialised.
Share certificate(s) is despatched to the shareholder by
Company’s R&TA.
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 4.3 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.
Shareholders’ Referencer02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
428
5. NOMINATION FACILITY
5.1 WHAT IS NOMINATION FACILITY AND TO WHOM
IS IT MORE USEFUL?
Section 72 of the Act 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.
5.2 WHAT IS THE PROCEDURE FOR APPOINTING A
NOMINEE?
Investors, especially those who are holding shares in single
name, are advised to avail of the nomination facility by
submitting the prescribed Form SH-13 for initial registration
of nomination and Form SH-14 for cancellation and variation
of nomination as per the Act 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”.
However, if shares are held in dematerialised form,
nomination has to be registered with the concerned DP
directly, as per the format prescribed by the DP.
5.3 WHO CAN APPOINT A NOMINEE AND WHO CAN
BE APPOINTED AS A NOMINEE?
Individual shareholders holding the shares / debentures in
single name or joint names can appoint a nominee. In case
of joint holding, joint holders together have to appoint the
nominee. An individual having capacity to contract only
can be appointed as a nominee. Minor can, however, be
appointed as a nominee.
5.4 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.
5.5 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.
5.6 IS NOMINATION FORM REQUIRED TO BE
WITNESSED?
A nomination form must be witnessed.
5.7 WHAT RIGHTS ARE CONFERRED ON THE
NOMINEE AND HOW CAN HE EXERCISE THE
SAME?
As per the provisions of Section 72 of the Act, 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.
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”.
6. TRANSFER / TRANSMISSION /
TRANSPOSITION / DUPLICATE
CERTIFICATES ETC.
6.1 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
Act, duly filled in, executed and share transfer stamps affixed
and also duly attested PAN of the transferor(s) as well as the
transferee(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 Act.
6.2 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.
6.3 WHAT SHOULD TRANSFEREE (PURCHASER) DO
IN CASE TRANSFER FORM IS RETURNED WITH
OBJECTIONS?
Reliance Industries Limited Life is Beautiful. Life is Digital.SHAREHOLDERS’ REFERENCERIntegrated Annual Report 2016-17
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.
6.4 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.
6.5 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.
6.6 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.
6.7 WHAT IS THE PROCEDURE FOR GETTING
THE SHARES HELD IN SINGLE NAME HAVING
NOMINATION TRANSMITTED IN THE NAME OF
NOMINEE?
The following documents are required to be submitted by
the nominee:
429
Duly signed transmission request form;
Original or Copy of death certificate duly attested by a
Notary Public or by a Gazetted Officer; and
Self-attested copy of PAN card of the nominee. (Copy
of PAN card may be substituted with ID proof in case of
residents of Sikkim after collecting address proof )
6.8 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?
The following documents needs to be submitted by the
legal heir(s):
Duly signed transmission request form;
Original or Copy of death certificate duly attested by a
Notary Public or by a Gazetted Officer;
Self-attested copy of PAN card (Copy of PAN card may
be substituted with ID proof in case of residents of
Sikkim after collecting address proof )
Additional documents:
a)
Affidavit from all the legal heirs made on
appropriate non judicial stamp paper – to
the effect of identification and claim of legal
ownership to the securities.
Provided that in case the legal heir(s)/claimant(s)
is named in the succession certificate or probate
of will or will or letter of administration, an
affidavit from such legal heir/claimant(s) alone
would be sufficient.
For value of securities up to ₹ 2,00,000 (Rupees
Two lakh only) per issuer company as on date
of application, one or more of the following
documents:
i.
b)
ii.
Succession certificate or probate of will or will
or letter of administration or court decree,
as may be applicable in terms of Indian
Succession Act, 1925.
In the absence of the documents as
mentioned at (i) above
A No objection certificate [NOC] from all
legal heir(s) executed by all the legal heirs of
the deceased holder not objecting to such
transmission (or) copy of Family Settlement
Deed duly notarized, and
An Indemnity bond made on appropriate non
judicial stamp paper – indemnifying the STA/
Issuer Company.
c)
For value of securities more than ₹ 2,00,000
(Rupees Two lakh only) per issuer company as on
the date of application:
Succession certificate or probate of will or will
or letter of administration or court decree,
as may be applicable in terms of Indian
Succession Act, 1925.
Shareholders’ Referencer02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
430
6.9 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 deed duly executed by all legal heirs of the
deceased beneficial owner.
If the value of shares of the Company as on the date of
application is more than ` 5,00,000, the legal heir(s) should
additionally submit one of the following documents to the DP:
Surety form
Succession certificate
Probated will
Letter of Administration
Note:
The timeline for processing the transmission requests by the DP for
securities held in dematerialised form is 7 days and by the Company /
R&TA for the securities held in physical form is 21 days, after receipt of the
prescribed documents from the claimants/legal heirs.
6.10 HOW CAN THE CHANGE IN ORDER OF NAMES
(THAT IS, TRANSPOSITION) BE EFFECTED?
Share certificate(s) along with a request letter duly signed
by all the joint holders and copies of their PAN Cards, duly
attested, 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.
6.11WHAT 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.
6.12 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 folio should send all such certificates to the
Company’s R&TA for consolidation into a single certificate.
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, Late 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);
Reliance Industries Limited Life is Beautiful. Life is Digital.SHAREHOLDERS’ REFERENCERIntegrated Annual Report 2016-17
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.
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.
Opt for Corporate Benefits in Electronic Form
In case of non-cash corporate benefits like split of shares /
bonus shares, the holders of shares in physical form must
opt to get the shares in electronic form by providing the
details of demat account to the R&TA.
Exercise caution
There is likelihood of fraudulent transfers in case of folios
with no movement or where 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.
7. UNCLAIMED SHARES UNDER LISTING
REGULATIONS
7.1 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)
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.
b)
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.
431
The voting rights on such unclaimed shares shall remain
frozen till the rightful owner claims the shares.
7.2 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 VI 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 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.
INVESTOR SERVICING AND GRIEVANCE
REDRESSAL - EXTERNAL AGENCIES
1. MINISTRY OF CORPORATE AFFAIRS (MCA)
MCA has launched its e-Governance initiative, that is,
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.
The status of complaint can be viewed by quoting the
Service Request Number (SRN) provided at the time of
filing the complaint.
2.
SECURITIES AND EXCHANGE BOARD OF INDIA
(SEBI)
SEBI, in its endeavour to protect the interest of investors,
has provided a platform wherein the investors can lodge
their grievances. This facility is known as SEBI Complaints
Redress System (SCORES) and is available on the SEBI
website (www.sebi.gov.in) and on SCORES’ website (http://
scores.gov.in).
3. SEBI COMPLAINTS REDRESS SYSTEM (SCORES)
The investor complaints are processed in a centralized
web based complaints redress system. The salient features
of this system are: Centralised database of all complaints,
online upload of Action Taken Reports (ATRs) by the
concerned companies and Online viewing by investors of
actions taken on the complaint and its current status.
All companies against whom complaints are pending
on SCORES, 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,
Shareholders’ Referencer02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
432
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 .
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, that is, www.nseindia.com
and go to the link “Investors Service”.
BSE Limited (BSE) - BSE has provided an opportunity
to the investors to file their complaints electronically
through its website: www.bseindia.com under the “Investor
Grievances” section.
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 for effecting change of name.
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 (Regulations). The Regulations came into
force from May 15, 2015, replacing its over two decade old
antecedent. Under the 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 Regulations, the Company has revised its Code
to Regulate, Monitor and Report Trading by Insiders (Reliance
Code). The 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
The Securities and Exchange Board of India (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.
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,
Reliance Industries Limited Life is Beautiful. Life is Digital.SHAREHOLDERS’ REFERENCERIntegrated Annual Report 2016-17
433
To demand poll on any resolution at a General Meeting in
accordance with the provisions of the Act.
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
Act.
Duties / Responsibilities of Investors
To remain abreast of corporate developments, company
specific information and take informed investment
decision(s).
To be aware of relevant statutory provisions and ensure
effective compliance therewith.
To deal with only SEBI registered intermediaries while
dealing in the securities.
Not to indulge in fraudulent and unfair trading in
securities nor to act upon any unpublished price sensitive
information.
To participate effectively in the proceedings of
shareholders’ meetings.
To contribute to the Greener Environment and 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 respond to communications of SEBI / Depository / DP /
Brokers / Sub-brokers / Other Intermediaries / Company,
seeking investor feedback / comments.
NOTE:
This Referencer contains general information. Readers are advised to refer to the
relevant Acts / Rules / Regulations / Guidelines / Clarifications before dealing in
securities.
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 Act, the Companies (Management and Administration)
Rules, 2014 and Clause 44 of 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 receive notice and forms for Postal Ballots in terms of
the provisions of the Act and the relevant Rules issued
thereunder.
To receive copies of the financial statements, including
consolidated financial statements, if any, report of directors
and auditors thereon and every other document required by
law to be annexed or attached to the financial statements
(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.
Shareholders’ Referencer02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
434
NOTICE
NOTICE is hereby given that the Fortieth Annual General
Meeting (Post - IPO) of the members of Reliance Industries
Limited will be held on Friday, July 21, 2017 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:
“RESOLVED THAT pursuant to the provisions of Section
152 of the Companies Act, 2013, Shri Hital R. Meswani
(DIN: 00001623), 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.”
ORDINARY BUSINESS
1. To consider and adopt (a) the audited financial statement
of the Company for the financial year ended March 31,
2017 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, 2017 and the report of Auditors thereon and
in this regard, pass the following resolutions as Ordinary
Resolutions:
(a)
(b)
“RESOLVED THAT the audited financial statement of
the Company for the financial year ended March 31,
2017 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, 2017 and the report of Auditors thereon laid
before this meeting, be and are hereby considered and
adopted.”
2.
To declare a dividend on equity shares for the financial year
ended March 31, 2017 and in this regard, pass the following
resolution as an Ordinary Resolution:
“RESOLVED THAT a dividend at the rate of ₹ 11/- (Eleven
rupees only) per equity share of ₹ 10/- (Ten rupees) each
fully paid-up of the Company be and is hereby declared
for the financial year ended March 31, 2017 and the same
be paid as recommended by the Board of Directors of
the Company, out of the profits of the Company for the
financial year ended March 31, 2017.”
3. To appoint Smt. Nita M. Ambani, who retires by rotation
and being eligible, offers herself for re-appointment as a
Director 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, Smt. Nita M. Ambani
(DIN: 03115198), who retires by rotation at this meeting
and being eligible has offered herself for re-appointment,
be 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:
“RESOLVED THAT pursuant to the provisions of Sections
139, 142 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), S R B C & Co., LLP, Chartered Accountants
(Registration No. 324982E/E300003) and
D T S & Associates, Chartered Accountants (Registration
No. 142412W), be and are hereby appointed as Auditors
of the Company for a term of 5 (five) consecutive years
from the conclusion of this Annual General Meeting till the
conclusion of the sixth Annual General Meeting from this
Annual General Meeting, at such remuneration as shall be
fixed by the Board of Directors of the Company.”
SPECIAL BUSINESS
6.
To re-appoint Shri Pawan Kumar Kapil as a Whole-time
Director and in this regard, pass the following resolution as
a Special Resolution:
“RESOLVED THAT in accordance with the provisions
of Sections 196, 197 and 203 read with Schedule V and
other applicable provisions of the Companies Act, 2013
and the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 (including any
statutory modification(s) or re-enactment(s) thereof, for
the time being in force), approval of the members be and
is hereby accorded to re-appoint Shri Pawan Kumar Kapil
(DIN: 02460200) as a Whole-time Director, designated as
Executive Director of the Company, for a further period
of 5 (five) years from the expiry of his present term of
office, that is, with effect from May 16, 2018 on the terms
and conditions including remuneration as set out in the
Statement annexed to the Notice, with liberty to the Board
of Directors (hereinafter referred to as “the Board” which
term shall include the Human Resources, Nomination and
Remuneration Committee of the Board) to alter and vary
the terms and conditions of the said re-appointment and /
or remuneration as it may deem fit;
4. To appoint Shri Hital R. Meswani, who retires by rotation
and being eligible, offers himself for re-appointment as a
Director and in this regard, pass the following resolution as
an Ordinary Resolution:
RESOLVED FURTHER THAT the Board be and is hereby
authorised to do all acts and take all such steps as may
be necessary, proper or expedient to give effect to this
resolution.”
Reliance Industries Limited Life is Beautiful. Life is Digital.Integrated Annual Report 2016-17
435
7.
To re-appoint Shri Nikhil R. Meswani as a Whole-time
Director and in this regard, pass the following resolution as
an Ordinary Resolution:
9.
To re-appoint Prof. Ashok Misra as an Independent Director
and in this regard, pass the following resolution as a
Special Resolution:
“RESOLVED THAT in accordance with the provisions
of Sections 196, 197 and 203 read with Schedule V and
other applicable provisions of the Companies Act, 2013
and the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 (including any
statutory modification(s) or re-enactment(s) thereof, for
the time being in force), approval of the members be and
is hereby accorded to re-appoint Shri Nikhil R. Meswani
(DIN: 00001620) as a Whole-time Director, designated as
Executive Director of the Company, for a further period
of 5 (five) years from the expiry of his present term of
office, that is, with effect from July 1, 2018 on the terms
and conditions including remuneration as set out in the
Statement annexed to the Notice, with liberty to the Board
of Directors (hereinafter referred to as “the Board” which
term shall include the Human Resources, Nomination and
Remuneration Committee of the Board) to alter and vary
the terms and conditions of the said re-appointment and /
or remuneration as it may deem fit;
RESOLVED FURTHER THAT the Board be and is hereby
authorised to do all acts and take all such steps as may
be necessary, proper or expedient to give effect to this
resolution.”
8.
To re-appoint Shri Yogendra P. Trivedi as an Independent
Director and in this regard, pass the following resolution as
a Special Resolution:
“RESOLVED THAT pursuant to the provisions of Sections
149 and 152 read with Schedule IV and other applicable
provisions, if any, of the Companies Act, 2013 (“the Act”)
and the Companies (Appointment and Qualification of
Directors) Rules, 2014 and the applicable provisions of the
Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (including
any statutory modification(s) or re-enactment(s) thereof,
for the time being in force), Shri Yogendra P. Trivedi
(DIN: 00001879), who was appointed as an Independent
Director and who holds office of Independent Director
up to the conclusion of this Annual General Meeting and
being eligible, and in respect of whom the Company has
received a notice in writing under Section 160 of the Act
from a member proposing his candidature for the office of
Director, be and is hereby re-appointed as an Independent
Director of the Company, not liable to retire by rotation and
to hold office for a second term of 5 (five) consecutive years
on the Board of the Company.”
“RESOLVED THAT pursuant to the provisions of Sections
149 and 152 read with Schedule IV and other applicable
provisions, if any, of the Companies Act, 2013 (“the Act”)
and the Companies (Appointment and Qualification of
Directors) Rules, 2014 and the applicable provisions of the
Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (including
any statutory modification(s) or re-enactment(s) thereof, for
the time being in force), Prof. Ashok Misra (DIN: 00006051),
who was appointed as an Independent Director and who
holds office of Independent Director up to the conclusion
of this Annual General Meeting and being eligible, and
in respect of whom the Company has received a notice
in writing under Section 160 of the Act from a member
proposing his candidature for the office of Director, be and
is hereby re-appointed as an Independent Director of the
Company, not liable to retire by rotation and to hold office
for a second term of 5 (five) consecutive years on the Board
of the Company.”
10.
To re-appoint Shri Mansingh L. Bhakta as an Independent
Director and in this regard, pass the following resolution as
a Special Resolution:
“RESOLVED THAT pursuant to the provisions of Sections
149 and 152 read with Schedule IV and other applicable
provisions, if any, of the Companies Act, 2013 (“the Act”)
and the Companies (Appointment and Qualification of
Directors) Rules, 2014 and the applicable provisions of the
Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (including
any statutory modification(s) or re-enactment(s) thereof,
for the time being in force), Shri Mansingh L. Bhakta
(DIN: 00001963), who was appointed as an Independent
Director and who holds office of Independent Director
up to the date of this Annual General Meeting and being
eligible, and in respect of whom the Company has received
a notice in writing under Section 160 of the Act from
a member proposing his candidature for the office of
Director, be and is hereby re-appointed as an Independent
Director of the Company, not liable to retire by rotation and
to hold office for a second term of 5 (five) consecutive years
on the Board of the Company.”
11.
To re-appoint Prof. Dipak C. Jain as an Independent
Director and in this regard, pass the following resolution as
a Special Resolution:
Notice02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
436
“RESOLVED THAT pursuant to the provisions of Sections
149 and 152 read with Schedule IV and other applicable
provisions, if any, of the Companies Act, 2013 (“the Act”)
and the Companies (Appointment and Qualification of
Directors) Rules, 2014 and the applicable provisions of the
Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (including
any statutory modification(s) or re-enactment(s) thereof, for
the time being in force), Prof. Dipak C. Jain (DIN: 00228513),
who was appointed as an Independent Director and who
holds office of Independent Director up to the date of this
Annual General Meeting and being eligible, and in respect
of whom the Company has received a notice in writing
under Section 160 of the Act from a member proposing his
candidature for the office of Director, be and is hereby re-
appointed as an Independent Director of the Company, not
liable to retire by rotation and to hold office for a second
term of 5 (five) consecutive years on the Board of the
Company.”
12.
To re-appoint Dr. Raghunath A. Mashelkar as an
Independent Director and in this regard, pass the following
resolution as a Special Resolution:
“RESOLVED THAT pursuant to the provisions of Sections
149 and 152 read with Schedule IV and other applicable
provisions, if any, of the Companies Act, 2013 (“the Act”)
and the Companies (Appointment and Qualification of
Directors) Rules, 2014 and the applicable provisions of the
Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (including
any statutory modification(s) or re-enactment(s) thereof, for
the time being in force), Dr. Raghunath A. Mashelkar (DIN:
00074119), who was appointed as an Independent Director
and who holds office of Independent Director up to the
date of this Annual General Meeting and being eligible,
and in respect of whom the Company has received a notice
in writing under Section 160 of the Act from a member
proposing his candidature for the office of Director, be and
is hereby re-appointed as an Independent Director of the
Company, not liable to retire by rotation and to hold office
for a second term of 5 (five) consecutive years on the Board
of the Company.”
13.
To appoint Dr. Shumeet Banerji as an Independent Director
and in this regard, pass the following resolution as an
Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Sections
149 and 152 read with Schedule IV and other applicable
provisions, if any, of the Companies Act, 2013 (“the Act”)
and the Companies (Appointment and Qualification of
Directors) Rules, 2014 and the applicable provisions of the
Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (including
any statutory modification(s) or re-enactment(s) thereof,
for the time being in force), Dr. Shumeet Banerji
(DIN: 02787784), who qualifies for being appointed as
an Independent Director and in respect of whom the
Company has received a notice in writing under Section
160 of the Act from a member proposing his candidature
for the office of Director, be and is hereby appointed as
an Independent Director of the Company, not liable to
retire by rotation and to hold office for a term of 5 (five)
consecutive years, that is, up to July 20, 2022."
14.
To alter the Articles of Association of the Company and
in this regard, pass the following resolution as a Special
Resolution:
“RESOLVED THAT pursuant to the provisions of Section 14
and other applicable provisions, if any, of the Companies
Act, 2013 read with the Companies (Incorporation)
Rules, 2014 (including any statutory modification(s) or
re-enactment(s) thereof, for the time being in force) and
applicable requirements of the Reserve Bank of India,
approval of the members be and is hereby accorded for
alteration of the Articles of Association of the Company by
inserting the following new Article after existing Article 32:
"32A.
Until such time, the Company remains a promoter
of Jio Payments Bank Limited, no person (other
than the promoters / persons comprising the
promoter group / persons acting in concert
with the promoters and promoter group of the
Company), by himself or along with persons
acting in concert with him, shall acquire equity
shares or voting rights of the Company, which
taken together with equity shares or voting rights
already held by him and persons acting in concert
with him, would take the aggregate holding
of such person and persons acting in concert
with him to five percent or more (or such other
percentage as may be prescribed by the Reserve
Bank of India, from time to time) of the paid-up
equity share capital or total voting rights of the
Company without prior approval of the Reserve
Bank of India.
Explanation: For the purposes of this Article, the
terms “promoter”, “promoter group” and “persons
acting in concert” shall have the meanings
respectively assigned to them in the Securities
and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations,
2011 for the time being in force.”
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
Reliance Industries Limited Life is Beautiful. Life is Digital.NOTICEIntegrated Annual Report 2016-17
437
expedient to give effect to this resolution and for matters
connected therewith or incidental thereto.”
15.
To ratify the remuneration of Cost Auditors for the financial
year ending March 31, 2018 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, 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, 2018, be and is hereby ratified.”
16.
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
an aggregate nominal value up to ₹ 25,000 crore (Twenty
five thousand crore rupees only), on private placement,
from such persons and on such terms and conditions as the
Board of Directors of the Company may, from time to time,
determine and consider proper and most beneficial to the
Company including, 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
Mumbai, June 14, 2017
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 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.
2.
3.
4.
Notice02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
438
5.
6.
7.
8.
9.
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 are being sent to members separately along with
a copy of the Notice. Once the vote on a resolution is
cast by a member, whether partially or otherwise, the
member shall not be allowed to change it subsequently
or cast the vote again. The members who have cast
their vote(s) by using remote e-voting may also attend
the Meeting but shall not be entitled to cast their
vote(s) again at the Meeting.
In terms of Section 152 of the Act, Smt. Nita M. Ambani
and Shri Hital R. Meswani, 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.
Smt. Nita M. Ambani and Shri Hital R. Meswani are
interested in the Ordinary Resolutions set out at Item Nos.
3 and 4, respectively, of the Notice with regard to their
re-appointment. Shri Mukesh D. Ambani, Chairman &
Managing Director, being related to Smt. Nita M. Ambani
may be deemed to be interested in the resolution set out at
Item No. 3 of the Notice. Shri Nikhil R. Meswani, Executive
Director, being related to Shri Hital R. Meswani may be
deemed to be interested in the resolution set out at Item
No. 4 of the Notice. 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 Business set out
under Item Nos. 1 to 5 of the Notice.
Details of Directors retiring by rotation / seeking
appointment / re-appointment at the ensuing Meeting
are provided in the “Annexure” to the Notice 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.
Keeping in view the requirements set out in the Act, the
Audit Committee and Board of Directors of the Company
have recommended appointment of S R B C & Co., LLP,
Chartered Accountants (Registration No. 324982E/E300003)
and D T S & Associates, Chartered Accountants (Registration
No. 142412W) as Auditors of the Company for a term of 5
(five) consecutive years from the conclusion of this Annual
General Meeting till the conclusion of the sixth Annual
General Meeting from this Annual General Meeting, at such
remuneration as shall be fixed by the Board of Directors
of the Company. The first year of Audit by the aforesaid
Auditors will be of the financial statement of the Company
for the financial year ending March 31, 2018.
Both, S R B C & Co., LLP, Chartered Accountants and
D T S & Associates, Chartered Accountants have consented
to and confirmed that their appointment, if made, would
be within the limits specified under Section 141(3)(g) of the
Act. They have also confirmed that they are not disqualified
to be appointed as Auditors in terms of the provisions of
the proviso to Section 139(1), Section 141(2) and Section
141(3) of the Act and the provisions of the Companies
(Audit and Auditors) Rules, 2014. The Board commends the
Ordinary Resolution set out at Item No. 5 of the Notice for
approval by the members.
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 (that is, except Saturdays,
Sundays and Public Holidays) during business hours up to
the date of the Meeting. The aforesaid documents will be
also available for inspection by members at the Meeting.
10.
11.
12.
13. (a)
The Company has fixed July 14, 2017 as the 'Record
Date' for determining entitlement of members to
dividend for the financial year ended March 31, 2017.
(b)
The dividend on equity shares, if declared at the Meeting
as recommended by the Board of Directors, will be
credited / despatched between July 21, 2017 and
July 28, 2017 to those members whose names appear on
the Company’s Register of Members on the Record Date;
in respect of the shares held in dematerialised mode,
the dividend will be paid to members whose names are
furnished by National Securities Depository Limited and
Central Depository Services (India) Limited as beneficial
owners as on that date.
14.
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 500032 (Unit: Reliance
Industries Limited).
Reliance Industries Limited Life is Beautiful. Life is Digital.NOTICEIntegrated Annual Report 2016-17
439
of India (SEBI) for every participant in securities
market.
b.
are advised to make nomination in respect of
their shareholding in the Company. Nomination
form (SH-13) is made available in ‘Downloads’
section under Investor Relations dropdown on the
Company’s website: www.ril.com.
19. Members holding shares in electronic mode:
a.
are requested to submit their PAN to their
respective DPs with whom they are maintaining
their demat accounts, as mandated by SEBI for
every participant in securities market.
b.
are advised to contact their respective DPs for
availing the nomination facility.
20.
21.
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.
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 future communications from the Company including
Annual Reports, Notices, Circulars, etc., electronically.
22.
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.
23.
Members are advised to refer to the Shareholders’
Referencer provided in the Annual Report for guidance
on securities related matters. The same can also
be viewed through the link: http://www.ril.com/
InvestorRelations/Downloads.aspx.
24.
Members are requested to fill in and send the Feedback
Form provided in the Annual Report.
15.
16.
17.
Members holding shares in electronic mode may note
that bank particulars registered against their respective
depository accounts will be used by the Company for
payment of dividend. The Company or Karvy cannot act on
any request received directly from the members holding
shares in electronic form for any change of bank particulars
or bank mandates. Such changes are to be advised only to
the Depository Participant (DP) by the members.
Members holding shares in electronic mode are requested
to intimate any change in their address or bank mandates
to their 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 2008-09, 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 September 1, 2016 (date of the previous Annual General
Meeting) on the website of the Company and the same
can be accessed through the link: http://www.ril.com/
InvestorRelations/ShareholdersInformation.aspx. The said
details have also been uploaded on the website of the
Ministry of Corporate Affairs and the same can be accessed
through the link: www.mca.gov.in.
Attention of the members is drawn to the provisions
of Section 124(6) of the Act which require a company
to transfer in the name of IEPF Authority all shares in
respect of which dividend has not been paid or claimed
for 7 (seven) consecutive years or more.
In accordance with the aforesaid provision of the
Act read with the Investor Education and Protection
Fund Authority (Accounting, Audit, Transfer and
Refund) Rules, 2016, as amended, the Company has
already initiated necessary action for transfer of
all shares in respect of which dividend declared for
the financial year 2009-10 or earlier financial years
has not been paid or claimed by the members for
7 (seven) consecutive years or more. Members are
advised to visit the web-link: http://www.ril.com/
InvestorRelations/ShareholdersInformation.aspx to
ascertain details of shares liable for transfer in the
name of IEPF Authority.
18. Members holding shares in physical mode:
a.
are required to submit their Permanent Account
Number (PAN) to the Company / Karvy, as
mandated by the Securities and Exchange Board
Notice02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
440
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:
of the Board, shall be in addition to the remuneration
under (a) above.
ITEM NO. 6
The Board of Directors of the Company (“the Board”) at its
meeting held on April 24, 2017 has, subject to approval of
members, re-appointed Shri Pawan Kumar Kapil
(DIN: 02460200) as a Whole-time Director, designated as
Executive Director, for a further period of 5 (five) years from the
expiry of his present term, that is, May 15, 2018, on terms and
conditions including remuneration as recommended by the
Human Resources, Nomination and Remuneration Committee
(the ‘HRNR Committee’) of the Board and approved by the
Board.
It is proposed to seek members’ approval for the re-
appointment of and remuneration payable to Shri Pawan Kumar
Kapil as a Whole-time Director, designated as Executive Director
of the Company, in terms of the applicable provisions of the Act.
Broad particulars of the terms of re-appointment of and
remuneration payable to Shri Pawan Kumar Kapil are as under:
(a) Salary, Perquisites and Allowances per annum:
Particulars
Salary
Perquisites and Allowances
(₹ in crore)
0.69
0.94
The perquisites and allowances, as aforesaid, shall
include accommodation (furnished or otherwise) or
house rent allowance in lieu thereof; house maintenance
allowance together with reimbursement of expenses and
/ or allowances for utilisation of gas, electricity, water,
furnishing and repairs, medical assistance and leave travel
concession for self and family including dependents.
The said perquisites and allowances shall be evaluated,
wherever applicable, as per the provisions of Income
Tax Act, 1961 or any rules thereunder or any statutory
modification(s) or re-enactment(s) thereof; in the absence
of any such rules, perquisites and allowances shall be
evaluated at actual cost.
(b) The Company’s contribution to provident fund,
superannuation or annuity fund, gratuity payable and
encashment of leave, as per the rules of the Company, shall
be in addition to the remuneration under (a) above.
(c)
Increment in salary, perquisites and allowances and
remuneration by way of incentive / bonus / performance
linked incentive, payable to Shri Pawan Kumar Kapil, as may
be determined by the Board and / or the HRNR Committee
(d) It is clarified that employees stock options granted / to be
granted to Shri Pawan Kumar Kapil, from time to time, shall
not be considered as a part of perquisites under (a) above,
and that the perquisite value of stock options exercised
shall be in addition to the remuneration under (a) above.
(e) Reimbursement of Expenses:
Expenses incurred for travelling, board and lodging
including for Shri Pawan Kumar Kapil’s spouse and
attendant(s) during business trips and provision of car(s) for
use on Company’s business and communication expenses
at residence shall be reimbursed at actuals and not
considered as perquisites.
The overall remuneration payable every year to the Managing
Director and the Whole-time Directors by way of salary,
perquisites and allowances, incentive / bonus / performance
linked incentive, remuneration based on net profits, etc., as
the case may be, shall not exceed in the aggregate 1% (one
percent) of the net profits of the Company as computed in the
manner laid down in Section 198 of the Act or any statutory
modification(s) or re-enactment(s) thereof.
(f) General:
i)
ii)
iii)
iv)
The Whole-time Director will perform his duties as
such with regard to all work of the Company and will
manage and attend to such business and carry out the
orders and directions given by the Board / Managing
Director from time to time in all respects and conform
to and comply with all such directions and regulations
as may from time to time be given and made by the
Board / Managing Director and the functions of the
Whole-time Director will be under the overall authority
of the Managing Director.
The Whole-time Director shall act in accordance with
the Articles of Association of the Company and shall
abide by the provisions contained in Section 166 of the
Act with regard to duties of directors.
The Whole-time Director shall adhere to the
Company’s Code of Conduct.
The office of the Whole-time Director may be
terminated by the Company or by him by giving the
other 3 (three) months’ prior notice in writing.
Shri Pawan Kumar Kapil has attained age of seventy years
on September 1, 2015. Shri Pawan Kumar Kapil has rich and
varied experience in the industry and has been involved in the
operations of the Company. It would be in the interest of the
Reliance Industries Limited Life is Beautiful. Life is Digital.NOTICEIntegrated Annual Report 2016-17
441
Company to continue to avail of his considerable expertise and
to re-appoint Shri Pawan Kumar Kapil as a Whole-time Director.
Accordingly, approval of the members is sought for passing a
Special Resolution for re-appointment of Shri Pawan Kumar
Kapil as a Whole-time Director, as set out in Part-I of Schedule
V to the Act as also under sub-section (3) of Section 196 of the
Act.
Director of the Company, in terms of the applicable provisions
of the Act.
Broad particulars of the terms of re-appointment of and
remuneration payable to Shri Nikhil R. Meswani are as under:
(a) Salary, Perquisites and Allowances per annum:
Save and except as provided in the foregoing paragraph, Shri
Pawan Kumar Kapil satisfies all the other conditions set out in
Part-I of Schedule V to the Act as also conditions set out under
sub-section (3) of Section 196 of the Act for being eligible for his
re-appointment. He is not disqualified from being appointed as
Director in terms of Section 164 of the Act.
The above may be treated as a written memorandum setting
out the terms of re-appointment of Shri Pawan Kumar Kapil
under Section 190 of the Act.
Details of Shri Pawan Kumar Kapil are provided in the
“Annexure” to the Notice 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.
Shri Pawan Kumar Kapil is interested in the resolution set out at
Item No. 6 of the Notice.
The relatives of Shri Pawan Kumar Kapil may be deemed to
be interested in the resolution set out at Item No. 6 of the
Notice, to the extent of their shareholding interest, if any, in the
Company.
Save and except the above, none of the other Directors / Key
Managerial Personnel of the Company / their relatives are, in
any way, concerned or interested, financially or otherwise, in the
aforementioned resolution.
The Board commends the Special Resolution set out at Item No.
6 of the Notice for approval by the members.
ITEM NO. 7
The Board of Directors of the Company ("the Board") at its
meeting held on April 24, 2017 has, subject to approval of
members, re-appointed Shri Nikhil R. Meswani (DIN: 00001620)
as a Whole-time Director, designated as Executive Director, for
a further period of 5 (five) years from the expiry of his present
term, that is, June 30, 2018 on terms and conditions including
remuneration as recommended by the Human Resources,
Nomination and Remuneration Committee (the ‘HRNR
Committee’) of the Board and approved by the Board.
It is proposed to seek the members’ approval for the re-
appointment of and remuneration payable to Shri Nikhil R.
Meswani as a Whole-time Director, designated as Executive
Particulars
Salary
Perquisites and Allowances
(₹ in crore)
1.80
3.50
The perquisites and allowances, as aforesaid, shall
include accommodation (furnished or otherwise) or
house rent allowance in lieu thereof; house maintenance
allowance together with reimbursement of expenses and
/ or allowances for utilisation of gas, electricity, water,
furnishing and repairs, medical assistance and leave travel
concession for self and family including dependents.
The said perquisites and allowances shall be evaluated,
wherever applicable, as per the provisions of Income
Tax Act, 1961 or any rules thereunder or any statutory
modification(s) or re-enactment(s) thereof; in the absence
of any such rules, perquisites and allowances shall be
evaluated at actual cost.
(b) The Company’s contribution to provident fund,
superannuation or annuity fund, gratuity payable and
encashment of leave, as per the rules of the Company, shall
be in addition to the remuneration under (a) above.
(c)
Increment in salary, perquisites and allowances and
remuneration based on net profits or by way of incentive /
bonus / performance linked incentive payable to Shri Nikhil
R. Meswani, as may be determined by the Board and / or
the HRNR Committee of the Board, shall be in addition to
the remuneration under (a) above.
(d) It is clarified that employees stock options granted / to be
granted to Shri Nikhil R. Meswani, from time to time, shall
not be considered as a part of perquisites under (a) above
and that the perquisite value of stock options exercised
shall be in addition to the remuneration under (a) above.
(e) Remuneration based on net profits:
In addition to the salary, perquisites and allowances as
set out above, Shri Nikhil R. Meswani shall be entitled
to receive remuneration based on net profits. Such
remuneration based on net profits payable to him as also
to the Managing Director and other Whole-time Directors
of the Company will be determined by the Board and / or
the HRNR Committee of the Board for each financial year.
(f)
Reimbursement of Expenses:
Expenses incurred for travelling, board and lodging
including for Shri Nikhil R. Meswani’s spouse and
attendant(s) during business trips and provision of car(s) for
use on Company’s business and communication expenses
at residence shall be reimbursed at actuals and not
considered as perquisites.
Notice02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
442
The overall remuneration payable every year to the Managing
Director and the Whole-time Directors by way of salary,
perquisites and allowances, incentive / bonus / performance
linked incentive, remuneration based on net profits, etc., as
the case may be, shall not exceed in the aggregate 1% (one
percent) of the net profits of the Company as computed in the
manner laid down in Section 198 of the Act or any statutory
modification(s) or re-enactment(s) thereof.
(g) General:
i)
ii)
iii)
iv)
The Whole-time Director will perform his duties as
such with regard to all work of the Company and will
manage and attend to such business and carry out the
orders and directions given by the Board / Managing
Director from time to time in all respects and conform
to and comply with all such directions and regulations
as may from time to time be given and made by the
Board / Managing Director and the functions of the
Whole-time Director will be under the overall authority
of the Managing Director.
The Whole-time Director shall act in accordance with
the Articles of Association of the Company and shall
abide by the provisions contained in Section 166 of the
Act with regard to duties of directors.
The Whole-time Director shall adhere to the
Company’s Code of Conduct.
The office of the Whole-time Director may be
terminated by the Company or by him by giving the
other 3 (three) months’ prior notice in writing.
Shri Nikhil R. Meswani satisfies all the conditions set out in Part-I
of Schedule V to the Act as also conditions set out under sub-
section (3) of Section 196 of the Act for being eligible for his
re-appointment. He is not disqualified from being appointed as
Director in terms of Section 164 of the Act.
The above may be treated as a written memorandum setting
out the terms of re-appointment of Shri Nikhil R. Meswani under
Section 190 of the Act.
Details of Shri Nikhil R. Meswani are provided in the “Annexure”
to the Notice 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.
Shri Nikhil R. Meswani is interested in the resolution set out
at Item No. 7 of the Notice. Shri Hital R. Meswani, a Whole-
time Director, being related to Shri Nikhil R. Meswani may be
deemed to be interested in the resolution set out at Item No. 7
of the Notice.
The other relatives of Shri Nikhil R. Meswani may be deemed
to be interested in the resolution set out at Item No. 7 of the
Notice, to the extent of their shareholding interest, if any, in the
Company.
Save and except the above, none of the other Directors / Key
Managerial Personnel of the Company / their relatives are, in
any way, concerned or interested, financially or otherwise, in the
aforementioned resolution.
The Board commends the Ordinary Resolution set out at Item
No. 7 of the Notice for approval by the members.
ITEM NOS. 8, 9, 10, 11 AND 12
Shri Yogendra P. Trivedi (DIN: 00001879), Prof. Ashok Misra
(DIN: 00006051), Shri Mansingh L. Bhakta (DIN: 00001963),
Prof. Dipak C. Jain (DIN: 00228513) and Dr. Raghunath A.
Mashelkar (DIN: 00074119) were appointed as Independent
Directors on the Board of the Company pursuant to the
provisions of Section 149 of the Act read with the Companies
(Appointment and Qualification of Directors) Rules, 2014 and
the erstwhile Clause 49 of the Listing Agreement with the stock
exchanges. They hold office as Independent Directors of the
Company up to the conclusion / date of the ensuing Annual
General Meeting of the Company (“first term” in line with the
explanation to Sections 149(10) and 149(11) of the Act).
The Human Resources, Nomination and Remuneration
Committee of the Board of Directors, on the basis of the report
of performance evaluation of Independent Directors, has
recommended re-appointment of Shri Yogendra P. Trivedi, Prof.
Ashok Misra, Shri Mansingh L. Bhakta, Prof. Dipak C. Jain and Dr.
Raghunath A. Mashelkar as Independent Directors for a second
term of 5 (five) consecutive years on the Board of the Company.
The Board, based on the performance evaluation of
Independent Directors and as per the recommendation of the
Human Resources, Nomination and Remuneration Committee,
considers that, given their background and experience and
contributions made by them during their tenure, the continued
association of Shri Yogendra P. Trivedi, Prof. Ashok Misra, Shri
Mansingh L. Bhakta, Prof. Dipak C. Jain and Dr. Raghunath
A. Mashelkar would be beneficial to the Company and it is
desirable to continue to avail their services as Independent
Directors. Accordingly, it is proposed to re-appoint Shri
Yogendra P. Trivedi, Prof. Ashok Misra, Shri Mansingh L.
Bhakta, Prof. Dipak C. Jain and Dr. Raghunath A. Mashelkar
as Independent Directors of the Company, not liable to retire
by rotation and to hold office for a second term of 5 (five)
consecutive years on the Board of the Company.
Section 149 of the Act and provisions of the Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“Listing Regulations”) inter
alia prescribe that an independent director of a company shall
meet the criteria of independence as provided in Section 149(6)
of the Act.
Section 149(10) of the Act provides that an independent
director shall hold office for a term of up to five consecutive
years on the Board and shall be eligible for re-appointment on
passing a special resolution by the company and disclosure of
such appointment in its Board’s report. Section 149(11) provides
Reliance Industries Limited Life is Beautiful. Life is Digital.NOTICEIntegrated Annual Report 2016-17
443
The Board commends the Special Resolutions set out at Item
Nos. 8, 9, 10, 11 and 12 of the Notice for approval by the
members.
ITEM NO.13
In accordance with the provisions of Section 149 read with
Schedule IV to the Act, appointment of an Independent
Director requires approval of members. Based on the
recommendation of the Human Resources, Nomination and
Remuneration Committee, the Board of Directors has proposed
that Dr. Shumeet Banerji (DIN: 02787784), be appointed as an
Independent Director on the Board of the Company.
The appointment of Dr. Shumeet Banerji, shall be effective upon
approval by the members in the Meeting.
The Company has received a notice in writing from a member
along with the deposit of requisite amount under Section 160
of the Act proposing the candidature of Dr. Shumeet Banerji
for the office of Director of the Company. Dr. Shumeet Banerji
is not disqualified from being appointed as a Director in terms
of Section 164 of the Act and has given his consent to act as
a Director. The Company has received a declaration from Dr.
Shumeet Banerji that he meets the criteria of independence
as prescribed both under sub-section (6) of Section 149 of
the Act and under the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations,
2015 ("Listing Regulations"). In the opinion of the Board, Dr.
Shumeet Banerji fulfils the conditions for his appointment
as an Independent Director as specified in the Act and the
Listing Regulations. Dr. Shumeet Banerji is independent of the
management and possesses appropriate skills, experience and
knowledge.
Details of Dr. Shumeet Banerji are provided in the “Annexure”
to the Notice pursuant to the provisions of (i) the Listing
Regulations and (ii) Secretarial Standard on General Meetings
(“SS-2”), issued by the Institute of Company Secretaries of India.
Copy of draft letter of appointment of Dr. Shumeet Banerji
setting out the terms and conditions of appointment is
available for inspection by the members at the registered office
of the Company.
None of the Directors / Key Managerial Personnel of the
Company / their relatives are, in any way, concerned or
interested, financially or otherwise, in the resolution set out at
Item No. 13 of the Notice.
This statement may also be regarded as an appropriate
disclosure under the Listing Regulations.
The Board commends the Ordinary Resolution set out at Item
No. 13 of the Notice for approval by the members.
that an independent director may hold office for up to two
consecutive terms.
Shri Yogendra P. Trivedi, Prof. Ashok Misra, Shri Mansingh L.
Bhakta, Prof. Dipak C. Jain and Dr. Raghunath A. Mashelkar are
not disqualified from being appointed as Directors in terms of
Section 164 of the Act and have given their consent to act as
Directors.
The Company has received notices in writing from a member
along with the deposit of requisite amount under Section 160
of the Act proposing the candidature of Shri Yogendra P. Trivedi,
Prof. Ashok Misra, Shri Mansingh L. Bhakta, Prof. Dipak C. Jain
and Dr. Raghunath A. Mashelkar for the office of Independent
Directors of the Company.
The Company has also received declarations from Shri Yogendra
P. Trivedi, Prof. Ashok Misra, Shri Mansingh L. Bhakta, Prof. Dipak
C. Jain and Dr. Raghunath A. Mashelkar that they meet with the
criteria of independence as prescribed both under sub-section
(6) of Section 149 of the Act and under the Listing Regulations.
In the opinion of the Board, Shri Yogendra P. Trivedi, Prof. Ashok
Misra, Shri Mansingh L. Bhakta, Prof. Dipak C. Jain and Dr.
Raghunath A. Mashelkar fulfil the conditions for appointment
as Independent Directors as specified in the Act and the Listing
Regulations. Shri Yogendra P. Trivedi, Prof. Ashok Misra, Shri
Mansingh L. Bhakta, Prof. Dipak C. Jain and Dr. Raghunath A.
Mashelkar are independent of the management.
Details of Directors whose re-appointment as Independent
Directors is proposed at Item Nos. 8, 9, 10, 11 and 12, are
provided in the “Annexure” to the Notice pursuant to the
provisions of (i) the Listing Regulations and (ii) Secretarial
Standard on General Meetings (“SS-2”), issued by the Institute of
Company Secretaries of India.
Copy of draft letters of appointment of Shri Yogendra P. Trivedi,
Prof. Ashok Misra, Shri Mansingh L. Bhakta, Prof. Dipak C. Jain
and Dr. Raghunath A. Mashelkar setting out the terms and
conditions of appointment are available for inspection by the
members at the registered office of the Company.
Shri Yogendra P. Trivedi, Prof. Ashok Misra, Shri Mansingh L.
Bhakta, Prof. Dipak C. Jain and Dr. Raghunath A. Mashelkar are
interested in the resolutions set out respectively at Item Nos.
8, 9, 10, 11 and 12 of the Notice with regard to their respective
re-appointments.
The relatives of Shri Yogendra P. Trivedi, Prof. Ashok Misra, Shri
Mansingh L. Bhakta, Prof. Dipak C. Jain and Dr. Raghunath A.
Mashelkar may be deemed to be interested in the respective
resolutions to the extent of their shareholding interest, if any, in
the Company.
Save and except the above, none of the other Directors / Key
Managerial Personnel of the Company / their relatives are, in
any way, concerned or interested, financially or otherwise, in
these resolutions.
This statement may also be regarded as an appropriate
disclosure under the Listing Regulations.
Notice02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 444
ITEM NO. 14
The Company’s subsidiary “Jio Payments Bank Limited” has
been issued a licence under Section 22(1) of the Banking
Regulation Act, 1949 by the Reserve Bank of India (RBI) to carry
on payments bank business in India subject to certain terms
and conditions. The Company is the promoter of Jio Payments
Bank Limited holding 70% equity and State Bank of India holds
the balance 30%.
In compliance with the terms and conditions stipulated by RBI,
the Company had given an undertaking to amend the Articles
of Association of the Company in the manner set out in the
Special Resolution at Item No. 14 of the Notice and RBI had
conveyed its ‘No objection’ to this amendment.
In terms of the proposed amendment, until such time the
Company remains a promoter of Jio Payments Bank Limited,
acquisition of equity shares or voting rights of the Company by
any person (other than the promoters / persons comprising the
promoter group / persons acting in concert with the promoters
/ promoter group of the Company) which would take the
aggregate holding of such person together with persons acting
in concert with him to 5% or more requires prior approval of
RBI.
Accordingly, it is proposed to alter the Articles of Association
of the Company by inserting a new Article 32A in the Articles
of Association of the Company in the manner as set out in the
Special Resolution at Item No. 14 of the Notice.
Copy of the Articles of Association of the Company
incorporating the proposed new Article 32A is available for
inspection by members at the registered office of the Company.
Approval of the members is sought to the alteration of Articles
of Association of the Company by passing a Special Resolution
as set out at Item No. 14 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. 14 of the Notice.
The Board commends the Special Resolution set out at Item
No. 14 of the Notice for approval by the members.
ITEM NO. 15
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, 2018 as
per the following details:
Sr. No. Name of the Cost Auditor
Diwanji & Co.
K. G. Goyal & Associates
V. J. Talati & Co.
Kiran J. Mehta & Co.
Shri Suresh D. Shenoy
V. Kumar & Associates
Shome & Banerjee
Dilip M. Malkar & Co.
Shome & Banerjee (Lead Auditor)
Total
Industry
Electricity and Chemicals
Chemicals
Chemicals, Oil & Gas and Polyester
Textiles and Electricity
Polyester, Chemicals and Petroleum
Polyester
Oil & Gas and Chemicals
Chemicals
Lead Audit Fees
(₹ in lakh)
Audit fees
8.81
3.80
8.67
3.85
8.00
5.47
8.65
6.66
7.35
61.26
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, 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, 2018 by passing an Ordinary Resolution as set
out at Item No. 15 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. 15 of the Notice.
The Board commends the Ordinary Resolution set out at Item
No. 15 of the Notice for approval by the members.
ITEM NO. 16
The members of the Company, at the previous Annual General
Meeting held on September 1, 2016, 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, on private
placement. The said resolution is valid and effective for 1 (one)
Reliance Industries Limited Life is Beautiful. Life is Digital.NOTICEIntegrated Annual Report 2016-17 445
year from September 1, 2016. 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 issue 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. 16 of
the Notice. This enabling resolution authorises the Board of
Directors of the Company to offer or invite subscription for
redeemable non-convertible debentures, as may be required
by the Company, from time to time and as set out herein, for a
period of 1 (one) 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. 16 of the Notice.
The Board commends the Special Resolution set out at Item No.
16 of the Notice for approval by the members.
By Order of the Board of Directors
K. Sethuraman
Group Company Secretary and Chief Compliance Officer
Mumbai, June 14, 2017
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
Notice02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION 446
I
I
I
/
T
N
E
M
T
N
O
P
P
A
G
N
K
E
E
S
/
N
O
T
A
T
O
R
Y
B
G
N
R
T
E
R
S
R
O
T
C
E
R
D
F
O
S
L
I
A
T
E
D
I
I
I
I
I
G
N
T
E
E
M
L
A
R
E
N
E
G
L
A
U
N
N
A
G
N
U
S
N
E
E
H
T
T
A
T
N
E
M
T
N
O
P
P
A
-
E
R
I
7
1
0
2
,
4
1
E
N
U
J
D
E
T
A
D
E
C
T
O
N
E
H
T
O
T
E
R
U
X
E
N
N
A
I
w
o
n
(
T
C
D
U
m
o
r
f
r
e
e
n
g
n
E
i
l
a
c
i
m
e
h
C
l
a
c
i
m
e
h
C
f
o
e
t
u
t
i
t
s
n
I
s
a
n
w
o
n
k
i
a
b
m
u
M
l
,
)
y
g
o
o
n
h
c
e
T
s
r
a
e
y
1
5
r
e
e
n
g
n
E
i
l
a
c
i
m
e
h
C
s
r
a
e
y
1
7
l
y
g
o
o
n
h
c
e
T
&
t
n
e
m
e
g
a
n
a
M
n
i
s
r
a
e
y
8
4
s
r
u
o
n
o
H
m
o
r
f
e
t
a
u
d
a
r
G
e
c
r
e
m
m
o
C
s
r
a
e
y
4
5
i
f
o
y
t
i
s
r
e
v
n
U
m
o
r
f
e
m
m
a
r
g
o
r
P
,
y
t
i
s
r
e
v
n
U
i
,
.
.
A
S
U
.
,
i
a
n
a
v
l
y
s
n
n
e
P
d
o
o
h
d
l
i
h
C
y
l
r
a
E
n
i
i
a
b
m
u
M
a
m
o
p
D
l
i
i
n
a
w
s
e
M
.
R
l
i
h
k
i
N
i
r
h
S
l
i
p
a
K
r
a
m
u
K
n
a
w
a
P
i
r
h
S
i
n
a
w
s
e
M
.
R
l
a
t
i
H
i
r
h
S
i
n
a
b
m
A
.
M
a
t
i
N
.
t
m
S
l
a
c
i
m
e
h
c
o
r
t
e
p
n
i
e
c
n
e
i
r
e
p
x
e
t
s
a
V
.
y
r
t
s
u
d
n
i
m
o
r
f
s
c
i
m
o
n
o
c
E
n
i
e
c
n
e
i
c
S
f
o
r
o
e
h
c
a
B
l
l
o
o
h
c
S
s
s
e
n
i
s
u
B
n
o
t
r
a
h
W
l
m
u
e
o
r
t
e
p
n
i
e
c
n
e
i
r
e
p
x
e
t
s
a
V
.
y
r
t
s
u
d
n
i
l
m
u
e
o
r
t
e
p
n
i
e
c
n
e
i
r
e
p
x
e
t
s
a
V
r
e
d
n
u
o
F
,
i
.
n
a
b
m
A
M
a
t
i
N
t
m
S
s
’
y
n
a
p
m
o
C
r
e
f
e
r
e
s
a
e
P
l
.
y
r
t
s
u
d
n
i
:
e
t
i
s
b
e
w
s
’
y
n
a
p
m
o
C
r
e
f
e
r
e
s
a
e
P
l
:
e
t
i
s
b
e
w
s
’
y
n
a
p
m
o
C
r
e
f
e
r
e
s
a
e
P
l
e
c
n
a
i
l
e
R
,
n
o
s
r
e
p
r
i
a
h
C
&
,
s
e
c
n
e
i
c
S
d
e
i
l
p
p
A
d
n
a
g
n
i
r
e
e
n
g
n
E
f
o
i
l
o
o
h
c
S
m
o
r
f
g
n
i
r
e
e
n
g
n
E
i
l
a
c
i
m
e
h
C
n
i
e
c
n
e
i
c
S
f
o
r
o
e
h
c
a
B
l
n
o
i
t
a
c
u
d
E
d
e
l
i
a
t
e
d
r
o
f
m
o
c
.
l
i
r
.
w
w
w
:
e
t
i
s
b
e
w
.
l
e
fi
o
r
p
.
l
e
fi
o
r
p
d
e
l
i
a
t
e
d
r
o
f
m
o
c
.
l
i
r
.
w
w
w
.
l
e
fi
o
r
p
d
e
l
i
a
t
e
d
r
o
f
m
o
c
.
l
i
r
.
w
w
w
,
t
s
i
n
o
i
t
a
c
u
d
e
n
a
s
i
,
n
o
i
t
a
d
n
u
o
F
,
e
s
n
o
p
s
e
R
r
e
t
s
a
s
i
D
,
t
n
e
m
p
o
e
v
e
D
l
f
o
n
o
i
t
i
n
g
o
c
e
r
n
I
.
l
a
w
e
n
e
R
n
a
b
r
U
o
t
n
o
i
t
u
b
i
r
t
n
o
c
g
n
d
n
a
t
s
t
u
o
r
e
h
i
d
n
a
,
e
g
a
t
i
r
e
H
d
n
a
e
r
u
t
l
u
C
,
s
t
r
A
r
o
f
s
t
r
o
p
S
,
n
o
i
t
a
c
u
d
E
,
,
h
t
l
a
e
H
n
o
i
t
a
m
r
o
f
s
n
a
r
T
l
a
r
u
R
n
i
s
e
v
i
t
a
i
t
i
n
i
h
g
u
o
r
h
t
s
e
v
i
l
l
a
i
c
o
s
r
e
h
t
o
d
n
a
s
t
r
o
p
s
,
n
o
i
t
a
c
u
d
e
i
d
e
v
e
c
e
r
s
a
h
i
.
n
a
b
m
A
M
a
t
i
N
.
t
m
S
e
s
a
e
P
l
.
s
r
u
o
n
o
h
d
n
a
s
d
r
a
w
a
y
n
a
m
.
l
i
r
.
:
w
w
w
e
t
i
s
b
e
w
’s
y
n
a
p
m
o
C
r
e
f
e
r
,
s
a
e
r
a
t
n
e
m
p
o
e
v
e
d
r
o
t
c
e
s
l
.
s
t
r
o
p
s
f
o
t
n
e
n
o
p
o
r
p
a
d
n
a
s
a
h
n
o
i
t
a
d
n
u
o
F
e
c
n
a
i
l
e
R
n
o
i
l
l
i
m
2
1
r
e
v
o
d
e
t
c
a
p
m
i
n
a
m
o
w
s
s
e
n
i
s
u
b
,
t
s
i
p
o
r
h
t
n
a
l
i
h
p
.
l
e
fi
o
r
p
d
e
l
i
a
t
e
d
r
o
f
m
o
c
f
e
i
r
B
/
)
a
e
r
a
l
a
n
o
i
t
c
n
u
f
c
fi
i
c
e
p
s
n
i
i
e
s
i
t
r
e
p
x
e
g
n
d
u
l
c
n
i
(
e
c
n
e
i
r
e
p
x
E
e
m
u
s
e
R
s
n
o
i
t
a
c
fi
i
l
a
u
Q
s
r
a
l
u
c
i
t
r
a
P
e
g
A
l
i
a
u
n
n
A
g
n
n
e
v
n
o
c
e
c
i
t
o
N
e
h
t
f
o
7
l
a
r
e
n
e
G
l
i
a
u
n
n
A
g
n
n
e
v
n
o
c
e
c
i
t
o
N
e
h
t
7
1
0
2
,
1
2
y
l
u
J
n
o
g
n
i
t
e
e
M
l
a
r
e
n
e
G
t
n
e
m
e
t
a
t
s
y
r
o
t
a
n
a
p
x
e
h
t
i
l
w
d
a
e
r
h
t
i
w
d
a
e
r
7
1
0
2
,
1
2
y
l
u
J
n
o
g
n
i
t
e
e
M
i
r
h
S
,
o
t
e
r
e
h
t
t
n
e
m
e
t
a
t
s
y
r
o
t
a
n
a
p
x
e
l
h
c
r
a
M
n
o
t
o
l
l
a
B
l
a
t
s
o
P
y
b
s
r
e
d
o
h
e
r
a
h
s
l
s
a
w
i
n
a
w
s
e
M
.
R
l
a
t
i
H
i
r
h
S
,
4
1
0
2
,
8
2
r
o
t
c
e
r
i
D
e
m
l
i
t
-
e
o
h
W
a
s
a
d
e
t
n
o
p
p
a
-
e
r
i
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
f
o
6
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
e
h
t
y
b
d
e
s
s
a
p
n
o
i
t
u
o
s
e
r
e
h
t
l
r
e
p
s
A
i
a
s
a
d
e
t
n
o
p
p
a
-
e
r
e
b
o
t
d
e
s
o
p
o
r
p
r
o
t
c
e
r
i
D
e
m
l
i
t
-
e
o
h
W
r
o
t
c
e
r
i
D
e
m
l
i
t
-
e
o
h
W
a
s
a
d
e
t
n
o
p
p
a
-
e
r
i
s
i
i
n
a
w
s
e
M
.
R
l
i
h
k
N
i
i
r
h
S
,
o
t
e
r
e
h
t
e
b
o
t
d
e
s
o
p
o
r
p
s
i
l
i
p
a
K
r
a
m
u
K
n
a
w
a
P
l
e
b
a
i
l
,
r
o
t
c
e
r
i
D
e
v
i
t
u
c
e
x
E
s
a
d
e
t
a
n
g
i
s
e
d
n
o
i
t
a
t
o
r
y
b
e
r
i
t
e
r
o
t
l
f
o
e
u
a
v
e
t
i
s
i
u
q
r
e
p
g
n
d
u
l
c
n
i
i
s
l
i
a
t
e
d
k
c
o
t
s
l
f
o
e
u
a
v
e
t
i
s
i
u
q
r
e
p
g
n
d
u
l
c
n
i
i
k
c
o
t
s
l
f
o
e
u
a
v
e
t
i
s
i
u
q
r
e
p
g
n
d
u
l
c
n
i
i
r
e
f
e
r
e
s
a
e
p
l
,
d
e
s
i
c
r
e
x
e
s
n
o
i
t
p
o
k
c
o
t
s
f
o
I
I
V
e
r
u
x
e
n
n
A
o
t
I
t
n
e
m
h
c
a
t
t
A
o
t
e
h
t
f
o
I
I
V
e
r
u
x
e
n
n
A
o
t
I
t
n
e
m
h
c
a
t
t
A
o
t
r
e
f
e
r
e
s
a
e
p
l
,
d
e
s
i
c
r
e
x
e
s
n
o
i
t
p
o
e
h
t
f
o
I
I
V
e
r
u
x
e
n
n
A
o
t
I
t
n
e
m
h
c
a
t
t
A
o
t
r
e
f
e
r
e
s
a
e
p
l
,
d
e
s
i
c
r
e
x
e
s
n
o
i
t
p
o
)
t
r
o
p
e
R
s
’
d
r
a
o
B
e
h
t
)
t
r
o
p
e
R
s
’
d
r
a
o
B
)
t
r
o
p
e
R
s
’
d
r
a
o
B
n
o
i
t
a
r
e
n
u
m
e
r
r
o
f
(
e
r
o
r
c
8
5
6
1
₹
.
s
l
i
a
t
e
d
n
o
i
t
a
r
e
n
u
m
e
r
r
o
f
(
e
r
o
r
c
4
5
2
₹
.
s
l
i
a
t
e
d
n
o
i
t
a
r
e
n
u
m
e
r
r
o
f
(
e
r
o
r
c
8
5
6
1
₹
.
d
e
s
s
a
p
n
o
i
t
u
o
s
e
r
e
h
t
l
r
e
p
s
A
e
h
t
l
t
a
s
r
e
d
o
h
e
r
a
h
s
e
h
t
y
b
l
d
e
h
g
n
i
t
e
e
M
l
a
r
e
n
e
G
l
a
u
n
n
A
.
M
a
t
i
N
.
t
m
S
,
4
1
0
2
,
8
1
e
n
u
J
n
o
i
a
s
a
d
e
t
n
o
p
p
a
s
a
w
i
n
a
b
m
A
i
t
n
e
m
t
n
o
p
p
a
-
e
R
/
t
n
e
m
t
n
o
p
p
A
i
f
o
s
n
o
i
t
i
d
n
o
C
d
n
a
s
m
r
e
T
l
e
b
a
i
l
,
r
o
t
c
e
r
i
D
e
v
i
t
u
c
e
x
e
-
n
o
N
n
o
i
t
a
t
o
r
y
b
e
r
i
t
e
r
o
t
e
r
o
r
c
9
3
1
₹
.
)
y
n
a
f
i
,
s
e
e
f
g
n
i
t
t
i
s
g
n
d
u
l
c
n
i
(
i
n
w
a
r
d
t
s
a
l
n
o
i
t
a
r
e
n
u
m
e
R
Reliance Industries Limited Life is Beautiful. Life is Digital.NOTICEIntegrated Annual Report 2016-17
447
n
o
i
t
a
r
e
n
u
m
e
R
d
n
a
n
o
i
t
a
n
m
o
N
i
r
e
b
m
e
M
-
e
e
t
t
i
m
m
o
C
n
a
m
r
i
a
h
C
–
e
e
t
t
i
m
m
o
C
t
i
d
u
A
l
s
r
e
a
e
D
l
a
i
c
r
e
m
m
o
C
e
c
n
a
i
l
e
R
s
r
e
l
a
e
D
l
a
i
c
r
e
m
m
o
C
e
c
n
a
i
l
e
R
d
e
t
i
m
i
L
d
e
t
i
m
L
i
d
n
a
i
n
a
w
s
e
M
.
R
l
a
t
i
H
i
r
h
S
f
o
r
e
h
t
o
r
B
/
r
o
t
c
e
r
i
D
r
e
h
t
o
y
n
a
o
t
d
e
t
a
e
r
l
t
o
n
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
y
e
K
y
e
K
/
6
r
o
t
c
e
r
i
D
y
n
a
o
t
d
e
t
a
e
r
l
t
o
N
d
n
a
i
n
a
w
s
e
M
.
R
l
i
h
k
N
i
i
r
h
S
f
o
r
e
h
t
o
r
B
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
y
e
K
/
r
o
t
c
e
r
i
D
r
e
h
t
o
y
n
a
o
t
d
e
t
a
e
r
l
t
o
n
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
.
D
h
s
e
k
u
M
i
r
h
S
f
o
e
s
u
o
p
S
d
e
t
a
e
r
l
t
o
n
d
n
a
i
n
a
b
m
A
y
e
K
/
r
o
t
c
e
r
i
D
r
e
h
t
o
y
n
a
o
t
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
5
-
-
d
e
t
i
i
m
L
s
r
e
a
e
D
l
l
a
i
c
r
e
m
m
o
C
e
c
n
a
i
l
e
R
d
e
t
i
i
m
L
s
g
n
d
o
H
l
i
d
n
a
s
t
n
e
m
t
s
e
v
n
I
l
a
i
r
t
s
u
d
n
I
e
c
n
a
i
l
e
R
6
-
d
e
t
i
i
m
L
t
n
e
m
p
o
e
v
e
D
l
s
t
r
o
p
S
l
l
a
b
t
o
o
F
d
e
t
i
i
m
L
H
E
I
n
o
i
t
a
d
n
u
o
F
e
c
n
a
i
l
e
R
4
-
l
a
i
r
e
g
a
n
a
M
y
e
K
/
s
r
o
t
c
e
r
i
D
l
e
n
n
o
s
r
e
P
e
h
t
f
o
s
g
n
i
t
e
e
m
f
o
r
e
b
m
u
N
e
h
t
g
n
i
r
u
d
d
e
d
n
e
t
t
a
d
r
a
o
B
r
a
e
y
s
d
r
a
o
B
r
e
h
t
o
f
o
s
p
h
s
r
o
t
c
e
r
i
i
D
7
1
0
2
,
1
3
h
c
r
a
M
n
o
s
a
i
p
h
s
n
a
m
i
r
i
a
h
C
/
p
h
s
r
e
b
m
e
M
7
1
0
2
,
1
3
h
c
r
a
M
n
o
s
a
s
d
r
a
o
B
r
e
h
t
o
f
o
s
e
e
t
t
i
m
m
o
C
f
o
r
e
h
t
o
h
t
i
i
w
p
h
s
n
o
i
t
a
e
R
l
,
1
3
h
c
r
a
M
n
o
s
a
y
n
a
p
m
o
C
7
1
0
2
e
h
t
n
i
i
l
g
n
d
o
h
e
r
a
h
S
l
t
a
s
r
e
d
o
h
e
r
a
h
s
e
h
t
y
b
d
e
s
s
a
p
2
1
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
d
n
a
;
o
t
e
r
e
h
t
7
1
0
2
,
1
2
y
l
u
J
n
o
g
n
i
t
e
e
M
l
a
r
e
n
e
G
t
n
e
m
e
t
a
t
s
y
r
o
t
a
n
a
p
x
e
h
t
i
l
w
d
a
e
r
h
t
i
w
d
a
e
r
7
1
0
2
,
1
2
y
l
u
J
n
o
g
n
i
t
e
e
M
d
n
a
;
o
t
e
r
e
h
t
t
n
e
m
e
t
a
t
s
y
r
o
t
a
n
a
p
x
e
l
d
e
s
s
a
p
2
1
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
l
a
u
n
n
A
e
h
t
l
t
a
s
r
e
d
o
h
e
r
a
h
s
e
h
t
y
b
l
i
a
u
n
n
A
g
n
n
e
v
n
o
c
e
c
i
t
o
N
e
h
t
f
o
7
l
a
r
e
n
e
G
l
i
a
u
n
n
A
g
n
n
e
v
n
o
c
e
c
i
t
o
N
e
h
t
l
n
o
d
e
h
g
n
i
t
e
e
M
l
a
r
e
n
e
G
l
a
u
n
n
A
e
h
t
4
1
0
2
4
1
0
2
,
8
1
e
n
u
J
6
8
9
1
,
6
2
e
n
u
J
,
4
7
3
8
7
6
1
,
,
8
1
e
n
u
J
n
o
d
e
h
g
n
i
t
e
e
M
l
l
a
r
e
n
e
G
0
1
0
2
,
6
1
y
a
M
9
9
4
3
3
,
,
6
8
8
1
1
6
1
,
,
6
4
1
8
9
3
3
,
5
9
9
1
,
4
t
s
u
g
u
A
4
1
0
2
,
8
1
e
n
u
J
i
e
h
t
n
o
t
n
e
m
t
n
o
p
p
a
t
s
r
fi
f
o
e
t
a
D
d
r
a
o
B
s
n
o
i
t
i
d
n
o
c
i
d
a
p
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
f
o
6
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
s
n
o
i
t
i
d
n
o
c
d
n
a
s
m
r
e
t
g
n
i
t
s
i
x
e
r
e
p
s
A
d
n
a
s
m
r
e
t
g
n
i
t
s
i
x
e
r
e
p
s
A
e
b
o
t
d
e
s
o
p
o
r
p
n
o
i
t
a
r
e
n
u
m
e
R
i
n
a
w
s
e
M
.
R
l
i
h
k
i
N
i
r
h
S
l
i
p
a
K
r
a
m
u
K
n
a
w
a
P
i
r
h
S
i
n
a
w
s
e
M
.
R
l
a
t
i
H
i
r
h
S
i
n
a
b
m
A
.
M
a
t
i
N
.
t
m
S
s
r
a
l
u
c
i
t
r
a
P
Notice02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
,
y
t
i
s
r
e
v
n
U
i
i
t
a
h
a
w
u
G
m
o
r
f
,
r
u
p
n
a
K
T
I
I
448
s
c
i
t
s
i
t
a
t
S
n
i
a
J
.
C
k
a
p
D
i
.
f
o
r
P
a
t
k
a
h
B
.
L
h
g
n
i
s
n
a
M
i
r
h
S
a
r
s
i
M
k
o
h
s
A
.
f
o
r
P
i
d
e
v
i
r
T
P.
a
r
d
n
e
g
o
Y
i
r
h
S
s
r
a
e
y
0
6
s
r
a
e
y
5
8
s
r
a
e
y
9
6
s
r
a
e
y
8
8
l
a
c
i
t
a
m
e
h
t
a
M
n
i
.
.
S
M
r
o
t
i
c
i
l
o
S
d
n
a
e
t
a
c
o
v
d
A
m
o
r
f
g
n
i
r
e
e
n
g
n
E
i
l
a
c
i
m
e
h
C
n
i
.
h
c
e
T
B
.
)
e
t
a
c
o
v
d
A
(
.
.
B
L
L
,
.
m
o
C
B
.
m
o
r
f
g
n
i
t
e
k
r
a
M
n
i
.
.
D
h
P
m
o
r
f
g
n
i
r
e
e
n
g
n
E
i
l
a
c
i
m
e
h
C
n
i
.
.
S
M
.
.
A
S
U
.
,
s
a
x
e
T
f
o
y
t
i
s
r
e
v
n
U
i
,
s
t
t
e
s
u
h
c
a
s
s
a
M
y
t
i
s
r
e
v
n
U
s
t
f
u
T
i
,
i
f
o
y
t
i
s
r
e
v
n
U
m
o
r
f
g
n
i
r
e
e
n
g
n
E
i
&
e
c
n
e
i
c
S
r
e
m
y
l
o
P
n
i
.
.
D
h
P
.
.
A
S
U
.
.
.
A
S
U
.
,
s
t
t
e
s
u
h
c
a
s
s
a
M
n
a
e
D
r
e
m
r
o
F
l
.
r
a
o
h
c
s
d
n
a
r
e
h
c
a
e
t
d
e
h
s
i
u
g
n
i
t
s
i
D
f
o
l
o
o
h
c
S
g
g
o
l
l
e
K
f
o
l
a
r
e
n
e
g
n
i
e
c
n
e
i
r
e
p
x
e
t
s
a
v
g
n
v
a
h
i
i
g
n
v
a
h
,
i
g
n
i
r
e
e
n
g
n
E
f
o
r
o
s
s
e
f
o
r
P
d
n
a
n
o
e
c
n
e
i
r
e
p
x
e
t
s
a
v
g
n
v
a
h
i
s
e
i
t
i
r
u
c
e
s
d
n
a
e
t
a
r
o
p
r
o
c
d
n
a
,
s
w
a
l
f
o
a
n
e
r
a
e
h
t
n
i
e
c
n
e
i
r
e
p
x
e
t
s
a
v
.
n
o
i
t
a
x
a
t
o
t
g
n
i
t
a
e
r
l
s
r
e
t
t
a
m
r
o
t
i
c
i
l
o
S
d
n
a
e
t
a
c
o
v
d
A
g
n
d
a
e
L
i
n
a
i
c
i
m
e
d
a
c
a
n
a
s
i
a
r
s
i
M
k
o
h
s
A
.
f
o
r
P
r
o
t
i
c
i
l
o
S
d
n
a
e
t
a
c
o
v
d
A
g
n
d
a
e
L
i
n
r
e
t
s
e
w
h
t
r
o
N
,
t
n
e
m
e
g
a
n
a
M
:
e
t
i
s
b
e
w
s
’
y
n
a
p
m
o
C
r
e
f
e
r
e
s
a
e
P
l
.
s
w
a
l
s
i
e
H
.
n
o
i
t
a
c
u
d
e
l
a
c
i
n
h
c
e
T
r
e
h
g
H
i
s
’
y
n
a
p
m
o
C
r
e
f
e
r
e
s
a
e
P
l
.
.
A
S
U
.
,
o
g
a
c
i
h
C
,
s
i
o
n
i
l
l
I
,
y
t
i
s
r
e
v
n
U
i
.
l
e
fi
o
r
p
d
e
l
i
a
t
e
d
r
o
f
m
o
c
.
l
i
r
.
w
w
w
y
m
e
d
a
c
A
l
a
n
o
i
t
a
N
e
h
t
f
o
w
o
l
l
e
F
a
l
a
n
o
i
t
a
N
e
h
t
d
n
a
a
d
n
i
I
,
e
c
n
e
i
c
S
f
o
r
o
f
m
o
c
.
l
i
r
.
w
w
w
:
e
t
i
s
b
e
w
s
’
y
n
a
p
m
o
C
r
e
f
e
r
e
s
a
e
P
l
.
l
e
fi
o
r
p
d
e
l
i
a
t
e
d
s
n
o
i
t
a
c
fi
i
l
a
u
Q
s
r
a
l
u
c
i
t
r
a
P
e
g
A
i
g
n
d
u
l
c
n
i
(
e
c
n
e
i
r
e
p
x
E
c
fi
i
c
e
p
s
n
i
e
s
i
t
r
e
p
x
e
f
e
i
r
B
/
)
a
e
r
a
l
a
n
o
i
t
c
n
u
f
e
m
u
s
e
R
r
o
f
m
o
c
.
l
i
r
.
w
w
w
:
e
t
i
s
b
e
w
s
i
H
.
i
g
n
i
r
e
e
n
g
n
E
f
o
y
m
e
d
a
c
A
.
l
e
fi
o
r
p
d
e
l
i
a
t
e
d
e
s
a
e
P
l
l
.
s
e
d
a
o
c
c
a
y
n
a
m
m
h
d
e
n
r
a
e
i
.
l
i
r
.
w
w
w
:
e
t
i
s
b
e
w
s
’
y
n
a
p
m
o
C
r
e
f
e
r
e
v
a
h
s
n
o
i
t
u
b
i
r
t
n
o
c
g
n
d
n
a
t
s
t
u
o
i
.
l
e
fi
o
r
p
d
e
l
i
a
t
e
d
r
o
f
m
o
c
i
g
n
n
e
v
n
o
c
e
c
i
t
o
N
e
h
t
f
o
1
1
.
o
n
l
i
a
u
n
n
A
g
n
n
e
v
n
o
c
e
c
i
t
o
N
e
h
t
f
o
0
1
l
i
a
u
n
n
A
g
n
n
e
v
n
o
c
e
c
i
t
o
N
e
h
t
f
o
9
i
g
n
n
e
v
n
o
c
e
c
i
t
o
N
e
h
t
f
o
8
.
o
n
-
e
R
/
t
n
e
m
t
n
o
p
p
A
i
f
o
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
s
n
o
i
t
i
d
n
o
C
d
n
a
s
m
r
e
T
g
n
i
t
e
e
M
l
a
r
e
n
e
G
l
a
u
n
n
A
7
1
0
2
,
1
2
y
l
u
J
n
o
g
n
i
t
e
e
M
l
a
r
e
n
e
G
7
1
0
2
,
1
2
y
l
u
J
n
o
g
n
i
t
e
e
M
l
a
r
e
n
e
G
t
n
e
m
e
t
a
t
s
y
r
o
t
a
n
a
p
x
e
h
t
i
l
w
d
a
e
r
t
n
e
m
e
t
a
t
s
y
r
o
t
a
n
a
p
x
e
h
t
i
l
w
d
a
e
r
h
t
i
w
d
a
e
r
7
1
0
2
,
1
2
y
l
u
J
n
o
g
n
i
t
e
e
M
l
a
r
e
n
e
G
l
a
u
n
n
A
t
n
e
m
t
n
o
p
p
a
i
o
t
e
r
e
h
t
t
n
e
m
e
t
a
t
s
y
r
o
t
a
n
a
p
x
e
l
h
t
i
w
d
a
e
r
7
1
0
2
,
1
2
y
l
u
J
n
o
e
r
o
r
c
4
4
1
₹
.
l
e
n
u
J
n
o
d
e
h
g
n
i
t
e
e
M
l
a
r
e
n
e
G
4
1
0
2
,
8
1
e
n
u
J
4
1
0
2
,
8
1
e
n
u
J
4
1
0
2
,
8
1
e
n
u
J
n
o
d
e
h
l
l
a
u
n
n
A
e
h
t
l
t
a
s
r
e
d
o
h
e
r
a
h
s
l
n
o
d
e
h
g
n
i
t
e
e
M
l
a
r
e
n
e
G
l
a
u
n
n
A
l
n
o
d
e
h
g
n
i
t
e
e
M
l
a
r
e
n
e
G
l
a
u
n
n
A
g
n
i
t
e
e
M
a
r
e
n
e
G
l
l
a
u
n
n
A
e
h
t
t
a
e
h
t
y
b
d
e
s
s
a
p
1
1
.
o
n
m
e
t
i
e
h
t
l
t
a
s
r
e
d
o
h
e
r
a
h
s
e
h
t
y
b
d
e
s
s
a
p
e
h
t
l
t
a
s
r
e
d
o
h
e
r
a
h
s
e
h
t
y
b
d
e
s
s
a
p
l
s
r
e
d
o
h
e
r
a
h
s
e
h
t
y
b
d
e
s
s
a
p
1
1
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
1
1
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
1
1
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
.
o
n
m
e
t
i
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
l
d
e
s
o
p
o
r
p
n
o
i
t
a
r
e
n
u
m
e
R
i
d
a
p
e
b
o
t
)
y
n
a
5
0
0
2
,
4
t
s
u
g
u
A
4
1
0
2
,
8
1
-
7
7
9
1
,
7
2
r
e
b
m
e
t
p
e
S
5
0
0
2
,
7
2
l
i
r
p
A
2
9
9
1
,
6
1
l
i
r
p
A
i
t
n
e
m
t
n
o
p
p
a
t
s
r
fi
f
o
e
t
a
D
d
r
a
o
B
e
h
t
n
o
,
0
0
0
6
3
3
,
0
0
3
2
,
4
8
9
7
2
,
e
h
t
n
i
i
l
g
n
d
o
h
e
r
a
h
S
h
c
r
a
M
n
o
s
a
y
n
a
p
m
o
C
7
1
0
2
,
1
3
/
r
o
t
c
e
r
i
D
y
n
a
o
t
d
e
t
a
e
r
l
t
o
N
y
e
K
/
r
o
t
c
e
r
i
D
y
n
a
o
t
d
e
t
a
e
r
l
t
o
N
y
e
K
/
r
o
t
c
e
r
i
D
y
n
a
o
t
d
e
t
a
e
r
l
t
o
N
/
r
o
t
c
e
r
i
D
y
n
a
o
t
d
e
t
a
e
r
l
t
o
N
h
t
i
i
w
p
h
s
n
o
i
t
a
e
R
l
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
y
e
K
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
y
e
K
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
y
e
K
/
s
r
o
t
c
e
r
i
D
r
e
h
t
o
5
5
6
6
s
g
n
i
t
e
e
m
f
o
r
e
b
m
u
N
d
e
d
n
e
t
t
a
d
r
a
o
B
e
h
t
f
o
r
a
e
y
e
h
t
g
n
i
r
u
d
e
r
o
r
c
4
4
1
₹
.
o
t
e
r
e
h
t
o
t
e
r
e
h
t
o
t
e
r
e
h
t
t
n
e
m
e
t
a
t
s
y
r
o
t
a
n
a
p
x
e
l
e
r
o
r
c
9
4
1
₹
.
e
r
o
r
c
6
6
1
₹
.
n
w
a
r
d
t
s
a
l
n
o
i
t
a
r
e
n
u
m
e
R
f
i
,
e
e
f
g
n
i
t
t
i
s
g
n
d
u
l
c
n
i
(
i
Reliance Industries Limited Life is Beautiful. Life is Digital.NOTICEIntegrated Annual Report 2016-17
449
r
e
b
m
e
M
-
e
e
t
t
i
m
m
o
C
y
t
i
l
i
b
i
s
n
o
p
s
e
R
m
m
o
c
o
f
n
I
o
i
J
e
c
n
a
i
l
e
R
d
e
t
i
m
L
i
s
e
r
u
t
n
e
V
l
i
a
t
e
R
e
c
n
a
i
l
e
R
i
)
a
d
n
I
e
d
i
s
t
u
o
d
e
t
a
r
o
p
r
o
c
n
i
(
i
)
a
d
n
I
e
d
i
s
t
u
o
d
e
t
a
r
o
p
r
o
c
n
i
(
y
n
a
p
m
o
C
t
s
u
r
T
n
r
e
h
t
r
o
N
y
n
a
p
m
o
C
&
e
r
e
e
D
n
h
o
J
s
e
i
t
r
e
p
o
r
P
c
i
t
s
i
g
o
L
l
a
b
o
G
l
i
)
a
d
n
I
e
d
i
s
t
u
o
d
e
t
a
r
o
p
r
o
c
n
i
(
r
e
b
m
e
M
-
e
e
t
t
i
m
m
o
C
t
i
d
u
A
-
e
e
t
t
i
m
m
o
C
n
o
i
t
a
r
e
n
u
m
e
R
d
n
a
n
o
i
t
a
n
m
o
N
i
r
e
b
m
e
M
m
m
o
c
o
f
n
I
o
i
J
e
c
n
a
i
l
e
R
d
e
t
i
m
i
L
r
e
b
m
e
M
–
e
e
t
t
i
m
m
o
C
t
i
d
u
A
–
e
e
t
t
i
m
m
o
C
n
o
i
t
a
r
e
n
u
m
e
R
d
n
a
n
o
i
t
a
n
m
o
N
i
s
e
r
u
t
n
e
V
l
i
a
t
e
R
e
c
n
a
i
l
e
R
d
e
t
i
m
i
L
l
a
i
c
o
S
e
t
a
r
o
p
r
o
C
r
e
b
m
e
M
d
e
t
i
m
L
i
-
-
d
e
t
i
i
m
L
y
n
a
p
m
o
C
c
i
r
t
c
e
E
r
a
k
s
o
l
r
i
K
l
d
e
t
i
i
m
L
e
t
a
v
i
r
P
g
n
d
a
r
T
z
z
u
b
e
K
l
i
e
t
a
v
i
r
P
e
d
a
n
e
m
o
r
P
a
r
r
e
T
G
K
S
d
e
t
i
m
L
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
r
e
p
o
e
v
e
D
k
v
s
e
K
l
i
d
e
t
i
i
m
L
s
e
c
n
e
i
c
S
e
f
i
L
t
n
a
l
i
b
u
J
d
e
t
i
i
m
L
e
t
a
v
i
r
P
e
c
i
v
r
e
S
i
a
S
e
t
a
v
i
r
P
s
t
n
a
t
l
u
s
n
o
C
i
d
e
v
i
r
T
i
n
a
d
n
I
f
o
n
o
i
t
a
r
e
d
e
F
d
e
t
i
m
L
i
y
n
a
p
m
o
C
n
o
i
t
c
u
r
t
s
n
o
C
d
e
t
i
m
L
i
i
m
a
m
E
d
e
t
i
m
L
i
n
o
i
t
a
i
c
o
s
s
A
e
l
i
b
o
m
o
t
u
A
d
e
t
a
d
i
l
o
s
n
o
C
w
e
N
y
n
a
p
m
o
C
g
n
h
t
o
C
c
a
d
o
Z
l
i
i
s
e
i
r
t
s
u
d
n
I
e
m
e
r
p
u
S
e
h
T
d
e
t
i
m
L
i
d
e
t
i
m
L
i
r
e
h
t
o
f
o
s
p
h
s
r
o
t
c
e
r
i
i
D
h
c
r
a
M
n
o
s
a
s
d
r
a
o
B
7
1
0
2
,
1
3
d
e
t
i
m
i
L
s
e
c
n
e
i
c
S
e
f
i
L
t
n
a
l
i
b
u
J
e
c
r
e
m
m
o
C
f
o
r
e
b
m
a
h
C
C
M
I
8
n
o
i
t
c
e
S
(
y
r
t
s
u
d
n
I
d
n
a
)
y
n
a
p
m
o
c
8
n
o
i
t
c
e
S
(
)
y
n
a
p
m
o
c
s
e
i
r
t
s
u
d
n
I
e
m
e
r
p
u
S
e
h
T
i
/
p
h
s
r
e
b
m
e
M
-
e
e
t
t
i
m
m
o
C
R
S
C
&
y
t
i
l
i
i
b
a
n
a
t
s
u
S
i
l
p
h
s
n
o
i
t
a
e
R
s
r
e
d
o
h
e
k
a
t
S
l
r
e
b
m
e
M
-
e
e
t
t
i
m
m
o
C
n
a
m
r
i
a
h
C
r
e
b
m
e
M
–
e
e
t
t
i
m
m
o
C
t
i
d
u
A
-
e
e
t
t
i
m
m
o
C
n
o
i
t
a
r
e
n
u
m
e
R
d
n
a
n
o
i
t
a
n
m
o
N
i
r
e
b
m
e
M
d
e
t
i
m
i
L
y
n
a
p
m
o
C
g
n
h
t
o
C
c
a
i
d
o
Z
l
i
r
e
b
m
e
M
-
e
e
t
t
i
m
m
o
C
t
i
d
u
A
-
e
e
t
t
i
m
m
o
C
n
o
i
t
a
r
e
n
u
m
e
R
d
n
a
n
o
i
t
a
n
m
o
N
i
n
a
m
r
i
a
h
C
,
1
3
h
c
r
a
M
n
o
s
a
s
d
r
a
o
B
r
e
h
t
o
f
o
s
e
e
t
t
i
m
m
o
C
7
1
0
2
r
e
b
m
e
M
–
e
e
t
t
i
m
m
o
C
t
i
d
u
A
d
e
t
i
m
i
L
i
f
o
p
h
s
n
a
m
r
i
a
h
C
n
i
a
J
.
C
k
a
p
D
i
.
f
o
r
P
a
t
k
a
h
B
.
L
h
g
n
i
s
n
a
M
i
r
h
S
a
r
s
i
M
k
o
h
s
A
.
f
o
r
P
i
d
e
v
i
r
T
P.
a
r
d
n
e
g
o
Y
i
r
h
S
s
r
a
l
u
c
i
t
r
a
P
Notice02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
450
,
t
n
e
m
e
g
a
n
a
M
f
o
l
o
o
h
c
S
g
g
o
l
l
e
K
,
D
h
P
;
i
l
h
e
D
s
r
a
e
y
7
5
f
o
y
t
i
s
r
e
v
n
U
i
,
A
B
M
d
n
a
A
B
T
C
D
U
m
o
r
f
.
.
D
h
P
d
n
a
r
e
e
n
g
n
E
i
s
r
a
e
y
4
7
l
a
c
i
m
e
h
C
i
j
r
e
n
a
B
t
e
e
m
u
h
S
.
r
D
r
a
k
l
e
h
s
a
M
.
A
h
t
a
n
u
h
g
a
R
.
r
D
d
n
a
y
r
o
s
i
v
d
a
n
a
P
L
,
t
e
c
r
o
d
n
o
C
f
o
r
e
d
n
u
o
f
e
h
t
s
i
i
j
r
e
n
a
B
t
e
e
m
u
h
S
i
r
h
S
,
t
s
i
t
n
e
i
c
s
g
n
i
r
e
e
n
g
n
E
i
l
a
c
i
m
e
h
C
t
n
e
n
m
E
i
.
.
A
S
U
.
,
o
g
a
c
i
h
C
,
s
i
o
n
i
l
l
I
,
i
y
t
i
s
r
e
v
n
U
n
r
e
t
s
e
w
h
t
r
o
N
l
a
c
i
m
e
h
C
f
o
e
t
u
t
i
t
s
n
I
“
s
a
n
w
o
n
k
w
o
n
(
,
i
a
b
m
u
M
l
,
)
”
y
g
o
o
n
h
c
e
T
,
n
o
d
n
o
L
,
g
n
E
R
F
,
n
o
d
n
o
L
,
S
R
F
E
m
e
h
C
F
I
i
y
t
i
s
r
e
v
n
U
n
r
e
t
s
e
w
h
t
r
o
N
,
t
n
e
m
e
g
a
n
a
M
f
o
l
o
o
h
c
S
g
g
o
l
l
e
K
e
h
t
m
o
r
f
.
.
D
h
P
i
g
n
d
n
u
o
f
e
h
t
s
a
w
e
H
.
n
o
t
l
i
m
a
H
,
n
e
l
l
A
,
z
o
o
B
r
o
s
s
e
c
e
d
e
r
p
s
t
i
d
n
a
m
r
fi
e
h
t
.
)
4
1
0
2
(
n
a
h
s
u
h
b
V
i
,
z
o
o
B
g
n
i
t
a
r
a
p
e
s
l
a
e
d
c
i
r
o
t
s
i
h
e
h
t
f
o
n
o
i
t
u
c
e
x
e
d
n
a
,
n
g
i
s
e
d
,
n
o
i
t
p
e
c
n
o
c
e
h
t
d
e
l
-
o
c
e
h
8
0
-
7
0
0
2
n
I
.
y
n
a
p
m
o
C
&
z
o
o
B
f
o
r
e
c
ffi
O
e
v
i
t
u
c
e
x
E
f
e
h
C
i
p
u
o
r
G
e
l
y
l
r
a
C
e
h
t
o
t
s
s
e
n
i
s
u
b
t
n
e
m
n
r
e
v
o
g
e
h
t
g
n
i
l
l
e
s
,
n
o
t
l
i
m
a
H
,
n
e
l
l
A
i
&
z
o
o
B
s
a
n
o
i
s
i
v
d
g
n
i
t
l
u
s
n
o
c
y
g
e
t
a
r
t
s
l
l
a
b
o
g
e
h
t
ff
o
g
n
n
n
p
s
d
n
a
i
i
e
c
n
e
i
c
S
l
a
n
o
i
t
a
N
n
a
d
n
i
I
f
o
t
n
e
d
i
s
e
r
P
r
e
m
r
o
F
I
)
R
S
C
(
h
c
r
a
e
s
e
R
l
a
i
r
t
s
u
d
n
I
d
n
a
c
fi
i
t
n
e
i
c
S
r
o
f
l
i
c
n
u
o
C
f
o
l
a
r
e
n
e
G
-
r
o
t
c
e
r
i
D
r
e
m
r
o
F
i
s
i
h
d
e
v
e
c
e
r
e
H
.
n
o
t
l
i
m
a
H
,
n
e
l
l
A
,
z
o
o
B
g
n
n
o
i
i
j
e
r
o
f
e
b
s
s
e
n
i
s
u
B
f
o
l
o
o
h
c
S
l
l
a
b
o
G
e
h
t
f
o
d
r
a
o
B
y
r
o
s
i
v
d
A
e
h
t
d
n
a
,
)
A
S
U
i
(
d
n
M
e
n
O
f
o
d
r
a
o
B
y
r
o
s
i
v
d
A
'
e
t
a
u
d
a
r
G
s
o
g
a
c
i
h
C
f
o
y
t
i
s
r
e
v
n
U
e
h
t
i
.
)
y
n
a
m
r
e
G
(
m
u
i
s
o
p
m
y
S
c
i
m
o
n
o
c
E
t
a
y
t
l
u
c
a
f
e
h
t
f
o
r
e
b
m
e
m
a
s
a
w
e
H
f
o
s
r
e
s
i
v
d
A
r
o
n
e
S
f
o
i
l
e
n
a
P
e
h
t
n
o
s
e
v
r
e
s
e
H
.
)
A
S
U
l
(
a
t
a
d
t
u
o
s
b
A
d
n
a
e
h
t
,
)
K
U
,
s
r
i
a
ff
A
l
a
n
o
i
t
a
n
r
e
t
n
I
f
o
e
t
u
t
i
t
s
n
I
l
a
y
o
R
e
h
T
(
e
s
u
o
H
m
a
h
t
a
h
C
.
l
e
fi
o
r
p
d
e
l
i
a
t
e
d
)
K
U
(
y
g
r
e
n
E
a
a
T
l
,
)
A
S
U
(
h
t
l
a
e
H
g
r
e
B
,
)
A
S
U
(
h
t
l
a
e
H
l
i
a
t
i
g
D
s
u
e
t
o
r
P
o
t
i
r
o
s
i
v
d
a
r
o
n
e
s
a
s
a
s
e
v
r
e
s
d
n
a
)
a
d
n
I
(
d
e
t
i
i
i
m
L
m
m
o
c
o
f
n
I
o
i
J
r
o
f
m
o
c
.
l
i
r
.
w
w
w
:
e
t
i
s
b
e
w
s
’
y
n
a
p
m
o
C
r
e
f
e
r
e
s
a
e
P
l
.
n
o
i
t
a
d
n
u
o
F
n
o
i
t
a
v
o
n
n
I
l
a
n
o
i
t
a
N
e
c
n
a
i
l
e
R
d
n
a
)
d
n
a
e
r
I
(
l
s
l
a
c
i
t
u
e
c
a
m
r
a
h
P
x
i
l
e
F
,
)
d
n
a
e
r
I
(
l
l
l
o
c
o
n
n
I
,
)
A
S
U
(
d
n
a
e
c
n
a
i
l
l
A
h
c
r
a
e
s
e
R
l
a
b
o
G
l
f
o
t
n
e
d
i
s
e
r
P
.
c
n
I
P
H
f
o
s
r
o
t
c
e
r
i
D
f
o
d
r
a
o
B
e
h
t
n
o
s
e
v
r
e
s
y
l
t
n
e
r
r
u
c
i
j
r
e
n
a
B
i
r
h
S
.
.
K
U
,
s
r
e
e
n
g
n
E
i
.
y
n
a
p
m
o
C
l
a
c
i
m
e
h
C
f
o
n
o
i
t
u
t
i
t
s
n
I
d
n
a
)
A
S
N
I
(
y
m
e
d
a
c
A
t
a
r
e
e
r
a
c
r
a
e
y
0
2
a
r
e
t
f
a
3
1
0
2
n
i
y
n
a
p
m
o
C
&
z
o
o
B
m
o
r
f
d
e
r
i
t
e
r
i
j
r
e
n
a
B
a
m
d
a
P
e
h
t
d
n
a
)
0
0
0
2
(
n
a
h
s
u
h
B
a
m
d
a
P
.
d
r
a
o
B
y
r
o
s
i
v
d
A
s
’
n
a
e
D
e
h
t
n
o
d
e
v
r
e
s
y
l
s
u
o
v
e
r
p
s
a
h
e
h
e
r
e
h
w
i
l
i
a
u
n
n
A
g
n
n
e
v
n
o
c
e
c
i
t
o
N
e
h
t
f
o
3
1
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
e
h
t
f
o
2
1
.
o
n
m
e
t
i
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
l
t
n
e
m
e
t
a
t
s
y
r
o
t
a
n
a
p
x
e
h
t
i
l
w
d
a
e
r
7
1
0
2
,
1
2
y
l
u
J
n
o
g
n
i
t
e
e
M
l
a
r
e
n
e
G
n
o
g
n
i
t
e
e
M
a
r
e
n
e
G
l
l
i
a
u
n
n
A
g
n
n
e
v
n
o
c
e
c
i
t
o
N
i
r
h
S
i
.
s
e
n
a
p
m
o
c
e
g
a
t
s
y
l
r
a
e
g
n
p
o
e
v
e
d
n
l
i
i
g
n
i
z
i
l
a
i
c
e
p
s
m
r
fi
t
n
e
m
t
s
e
v
n
i
e
h
t
,
)
1
9
9
1
(
i
r
h
S
a
m
d
a
P
e
h
t
f
o
e
e
d
r
a
w
a
n
a
c
fi
i
c
e
p
s
n
i
i
e
s
i
t
r
e
p
x
e
g
n
d
u
l
c
n
i
(
e
c
n
e
i
r
e
p
x
E
e
m
u
s
e
R
f
e
i
r
B
/
)
a
e
r
a
l
a
n
o
i
t
c
n
u
f
s
n
o
i
t
a
c
fi
i
l
a
u
Q
s
r
a
l
u
c
i
t
r
a
P
e
g
A
-
e
R
/
t
n
e
m
t
n
o
p
p
A
i
f
o
s
n
o
i
t
i
d
n
o
C
d
n
a
s
m
r
e
T
t
n
e
m
t
n
o
p
p
a
i
4
1
0
2
,
8
1
e
n
u
J
n
o
d
e
h
g
n
i
t
e
e
M
l
l
a
r
e
n
e
G
l
a
u
n
n
A
l
a
r
e
n
e
G
l
a
u
n
n
A
e
h
t
t
a
s
r
e
d
o
h
e
r
a
h
s
e
h
t
y
b
l
4
1
0
2
,
8
1
e
n
u
J
n
o
d
e
h
g
n
i
t
e
e
M
l
e
h
t
l
t
a
s
r
e
d
o
h
e
r
a
h
s
e
h
t
y
b
d
e
s
s
a
p
1
1
.
o
n
m
e
t
i
l
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
d
e
s
s
a
p
1
1
.
o
n
m
e
t
i
t
a
n
o
i
t
u
o
s
e
r
e
h
t
r
e
p
s
A
l
i
d
a
p
e
b
o
t
d
e
s
o
p
o
r
p
n
o
i
t
a
r
e
n
u
m
e
R
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
y
e
K
/
r
o
t
c
e
r
i
D
y
n
a
o
t
d
e
t
a
e
r
l
-
-
-
t
o
N
l
a
i
r
e
g
a
n
a
M
y
e
K
/
r
o
t
c
e
r
i
D
y
n
a
o
t
d
e
t
a
e
r
l
t
o
N
-
-
,
1
3
h
c
r
a
M
n
o
s
a
y
n
a
p
m
o
C
e
h
t
n
i
i
l
g
n
d
o
h
e
r
a
h
S
7
1
0
2
y
e
K
/
s
r
o
t
c
e
r
i
D
r
e
h
t
o
h
t
i
i
w
p
h
s
n
o
i
t
a
e
R
l
7
0
0
2
,
9
e
n
u
J
d
r
a
o
B
e
h
t
n
o
t
n
e
m
t
n
o
p
p
a
t
s
r
fi
f
o
e
t
a
D
i
l
e
n
n
o
s
r
e
P
4
d
e
d
n
e
t
t
a
d
r
a
o
B
e
h
t
f
o
s
g
n
i
t
e
e
m
f
o
r
e
b
m
u
N
r
a
e
y
e
h
t
g
n
i
r
u
d
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
o
t
e
r
e
h
t
-
t
n
e
m
e
t
a
t
s
y
r
o
t
a
n
a
p
x
e
h
t
i
l
w
d
a
e
r
7
1
0
2
,
1
2
y
l
u
J
o
t
e
r
e
h
t
e
r
o
r
c
7
5
1
₹
.
i
,
s
e
e
f
g
n
i
t
t
i
s
g
n
d
u
l
c
n
i
(
n
w
a
r
d
t
s
a
l
n
o
i
t
a
r
e
n
u
m
e
R
)
y
n
a
f
i
Reliance Industries Limited Life is Beautiful. Life is Digital.NOTICEIntegrated Annual Report 2016-17
d
e
t
a
r
o
p
r
o
c
n
i
(
)
G
A
l
l
o
c
o
n
n
I
,
y
l
r
e
m
r
o
F
(
c
l
P
s
g
n
d
o
H
l
i
l
l
o
c
o
n
n
I
i
a
d
n
I
–
e
r
t
n
e
C
y
t
i
v
e
g
n
o
L
l
a
n
o
i
t
a
n
r
e
t
n
I
i
)
a
d
n
I
e
d
i
s
t
u
o
n
o
i
t
a
d
n
u
o
F
h
c
r
a
e
s
e
R
c
fi
i
t
n
e
i
c
S
a
d
r
a
h
G
)
y
n
a
p
m
o
c
8
n
o
i
t
c
e
S
(
)
y
n
a
p
m
o
c
8
n
o
i
t
c
e
S
(
i
l
s
e
g
o
o
n
h
c
e
T
d
e
c
n
a
v
d
A
&
l
a
c
i
d
e
M
a
d
r
a
h
G
)
y
n
a
p
m
o
c
8
n
o
i
t
c
e
S
(
n
o
i
t
a
d
n
u
o
F
d
e
t
a
r
o
p
r
o
c
n
i
(
)
.
c
n
I
y
n
a
p
m
o
C
d
r
a
k
c
a
P
t
t
e
w
e
H
l
,
y
l
r
e
m
r
o
F
(
.
c
n
I
P
H
i
)
a
d
n
I
e
d
i
s
t
u
o
d
e
t
a
r
o
p
r
o
c
n
i
(
C
L
L
h
t
l
a
e
H
g
r
e
B
i
)
a
d
n
I
e
d
i
s
t
u
o
e
d
i
s
t
u
o
d
e
t
a
r
o
p
r
o
c
n
i
(
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
l
a
c
i
t
u
e
c
a
m
r
a
h
P
x
i
l
e
F
d
e
t
i
i
m
L
m
m
o
c
o
f
n
I
o
i
J
e
c
n
a
i
l
e
R
i
)
a
d
n
I
i
)
a
d
n
I
e
d
i
s
t
u
o
d
e
t
a
r
o
p
r
o
c
n
i
(
.
c
n
I
,
h
t
l
a
e
H
l
i
a
t
i
g
D
s
u
e
t
o
r
P
i
)
a
d
n
I
e
d
i
s
t
u
o
d
e
t
a
r
o
p
r
o
c
n
i
(
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
g
r
e
n
E
a
a
T
l
d
e
t
i
i
l
m
L
s
n
o
i
t
u
o
S
g
n
i
r
u
t
c
a
f
u
n
a
M
L
A
T
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
e
c
n
e
i
c
s
o
B
e
m
o
y
V
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
r
e
p
a
P
l
a
k
a
S
d
e
t
i
i
m
L
s
e
s
i
r
p
r
e
t
n
E
l
a
m
a
r
i
P
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
g
o
o
c
n
O
s
u
t
c
i
v
n
l
I
d
e
t
i
i
i
l
m
L
s
e
g
o
o
n
h
c
e
T
T
P
K
I
d
e
t
i
i
m
L
s
r
o
t
o
M
a
t
a
T
d
e
t
i
i
m
L
x
a
m
r
e
h
T
,
1
3
h
c
r
a
M
n
o
s
a
s
d
r
a
o
B
r
e
h
t
o
f
o
s
p
h
s
r
o
t
c
e
r
i
i
D
7
1
0
2
i
j
r
e
n
a
B
t
e
e
m
u
h
S
.
r
D
r
a
k
l
e
h
s
a
M
.
A
h
t
a
n
u
h
g
a
R
.
r
D
s
r
a
l
u
c
i
t
r
a
P
n
a
m
r
i
a
h
C
-
e
e
t
t
i
m
m
o
C
y
t
i
l
i
b
i
s
n
o
p
s
e
R
l
a
i
c
o
S
&
e
c
n
a
n
r
e
v
o
G
,
g
n
i
t
a
n
m
o
N
i
.
c
n
I
P
H
r
e
b
m
e
M
-
e
e
t
t
i
m
m
o
C
n
o
i
t
a
s
n
e
p
m
o
C
&
R
H
n
a
m
a
r
u
h
t
e
S
.
K
s
r
o
t
c
e
r
i
D
f
o
d
r
a
o
B
e
h
t
f
o
r
e
d
r
O
y
B
r
e
c
ffi
O
e
c
n
a
i
l
i
p
m
o
C
f
e
h
C
d
n
a
y
r
a
t
e
r
c
e
S
y
n
a
p
m
o
C
p
u
o
r
G
r
e
b
m
e
M
–
s
e
e
t
t
i
m
m
o
C
e
c
n
a
n
r
e
v
o
G
d
n
a
g
n
i
t
a
n
m
o
N
d
n
a
n
o
i
t
a
s
n
e
p
m
o
C
i
d
e
t
i
m
i
L
e
t
a
v
i
r
P
y
g
r
e
n
E
a
l
a
T
r
e
b
m
e
M
–
s
e
e
t
t
i
m
m
o
C
n
o
i
t
a
s
n
e
p
m
o
C
&
R
H
r
e
b
m
e
M
-
e
e
t
t
i
m
m
o
C
t
i
d
u
A
.
c
n
I
,
h
t
l
a
e
H
i
l
a
t
i
g
D
s
u
e
t
o
r
P
n
a
m
r
i
a
h
C
–
e
e
t
t
i
m
m
o
C
t
i
d
u
A
C
L
L
h
t
l
a
e
H
g
r
e
B
d
e
t
i
m
i
L
e
t
a
v
i
r
P
s
l
a
c
i
t
u
e
c
a
m
r
a
h
P
x
i
l
e
F
n
a
m
r
i
a
h
C
–
e
e
t
t
i
m
m
o
C
t
i
d
u
A
n
a
m
r
i
a
h
C
-
e
e
t
t
i
m
m
o
C
e
c
n
a
n
r
e
v
o
G
&
g
n
i
t
a
n
m
o
N
i
.
c
l
P
s
g
n
d
o
H
l
i
l
l
o
c
o
n
n
I
d
e
t
i
i
m
L
x
i
d
e
M
e
n
e
G
e
c
n
a
i
l
e
R
e
e
t
t
i
m
m
o
C
y
t
i
l
i
b
i
s
n
o
p
s
e
R
l
a
i
c
o
S
e
t
a
r
o
p
r
o
C
n
a
m
r
i
a
h
C
–
r
e
b
m
e
M
i
)
a
d
n
I
e
d
i
s
t
u
o
d
e
t
a
r
o
p
r
o
c
n
i
n
o
i
t
a
s
i
n
a
g
r
o
t
fi
o
r
p
-
n
o
N
(
l
a
n
o
i
t
a
n
r
e
t
n
I
h
t
l
a
e
H
s
s
e
c
c
A
i
)
a
d
n
I
e
d
i
s
t
u
o
d
e
t
a
r
o
p
r
o
c
n
i
(
r
e
b
m
e
M
-
e
e
t
t
i
m
m
o
C
t
i
d
u
A
d
e
t
i
m
i
L
s
r
o
t
o
M
a
t
a
T
-
e
e
t
t
i
m
m
o
C
n
o
i
t
a
r
e
n
u
m
e
R
&
n
o
i
t
a
n
m
o
N
i
f
o
s
e
e
t
t
i
m
m
o
C
f
o
p
h
s
n
a
m
i
i
r
i
a
h
C
/
p
h
s
r
e
b
m
e
M
7
1
0
2
,
1
3
h
c
r
a
M
n
o
s
a
s
d
r
a
o
B
r
e
h
t
o
–
e
e
t
t
i
m
m
o
C
t
n
e
m
n
o
r
i
v
n
E
&
h
t
l
a
e
H
,
y
t
e
f
a
S
r
e
b
m
e
M
-
e
e
t
t
i
m
m
o
C
t
n
e
m
e
g
a
n
a
M
k
s
i
R
n
a
m
r
i
a
h
C
d
e
t
i
l
m
i
L
s
e
i
g
o
o
n
h
c
e
T
T
I
P
K
d
e
t
i
l
m
i
L
s
n
o
i
t
u
o
S
g
n
i
r
u
t
c
a
f
u
n
a
M
L
A
T
r
e
b
m
e
M
–
e
e
t
t
i
m
m
o
C
k
s
i
R
&
t
i
d
u
A
d
e
t
i
m
i
L
s
e
s
i
r
p
r
e
t
n
E
l
a
m
a
r
i
P
n
a
m
r
i
a
h
C
–
e
e
t
t
i
m
m
o
C
n
o
i
t
a
r
e
n
u
m
e
R
&
n
o
i
t
a
n
m
o
N
i
d
e
t
i
m
i
L
x
a
m
r
e
h
T
r
e
b
m
e
M
–
e
e
t
t
i
i
m
m
o
C
p
h
s
n
o
i
t
a
e
R
s
r
e
d
o
h
e
k
a
t
S
l
l
e
e
t
t
i
m
m
o
C
y
t
i
l
i
b
i
s
n
o
p
s
e
R
l
a
i
c
o
S
e
t
a
r
o
p
r
o
C
r
e
b
m
e
M
-
i
,
t
n
o
P
n
a
m
i
r
a
N
,
2
2
2
,
V
I
s
r
e
b
m
a
h
C
r
e
k
a
M
l
,
r
o
o
F
d
r
3
i
a
d
n
I
,
1
2
0
0
0
4
i
a
b
m
u
M
:
e
c
ffi
O
d
e
r
e
t
s
i
g
e
R
7
1
0
2
,
4
1
e
n
u
J
,
i
a
b
m
u
M
451
m
o
c
.
l
i
r
l
@
s
n
o
i
t
a
e
r
_
r
o
t
s
e
v
n
i
:
l
i
a
m
-
E
m
o
c
.
l
i
r
.
w
w
w
:
e
t
i
s
b
e
W
1
1
1
5
8
7
2
2
2
2
1
9
+
:
x
a
F
0
0
0
5
8
7
2
2
2
2
1
9
+
:
.
l
e
T
6
8
7
9
1
0
C
L
P
3
7
9
1
H
M
0
1
1
7
1
L
:
N
C
I
Notice02-5657-179180-277278-419420-452CORPORATE OVERVIEWMANAGEMENT REVIEWGOVERNANCEFINANCIAL STATEMENTSSHAREHOLDER INFORMATION
452
ROUTE MAP
Marine Lines
Railway Station
r i n
M a
r
e
v
o
s F l y
e
e L i n
M
a
h
a
r
s
h
i
K
a
r
v
e
R
o
a
d
Birla Matushri Sabhagar
19, Sir Vithaldas Thackersey Marg, Near
Bombay Hospital & Medical Research Centre,
New Marine Lines, Mumbai 400 020
Latitude and Longitude:
18.9404260 N 72.8280710 E
Approximate distance from:
Churchgate Railway Station:
650 meters (via Maharshi Karve Road)
Marine Lines Railway Station:
900 meters (via Maharshi Karve Road/
Sir Vithaldas Thackersey Marg)
Chatrapati Shivaji Terminus (CST):
1200 meters (via Mahapalika Marg)
i d
j
s
G o l M a
M E T R O
B i g C i n e m a
M
a
h
a
r
s
h
i
Q u e e n s R o a d
K
a
r
v
e
R
o
a
d
B o m b a y H o s p i t a l
& M e d i c a l
R e s e a r c h C e n t r e
M
a
h
a
t
m
a
B i r l a M a t u s h r i
S a b h a g a r
G
a
n
d
h
i
R
o
a
d
U A H K h a n M a r g
A a y a k a r
B h a v a n
M
a
h
a
r
s
h
i
K
a
r
v
e
R
o
a
d
S
i
r
V
i
t
h
a
l
d
a
s
T
h
a
c
k
e
r
s
e
y
M
a
r
g
M
a
h
a
p
alik
a M
arg
M
a
h
a
p
i k a
M a h a p a l
l d i n g
B u i
alik
a M
arg
d
a
o
D N R
Chatrapati Shivaji
Terminus
(CST)
Azad
Maidan
d
a
o
D N R
Churchgate
Railway Station
Flora Fountain
Scan the QR code on your smart device to view the map
to reach venue of the Annual General Meeting
Reliance Industries Limited Life is Beautiful. Life is Digital.NOTICEIntegrated Annual Report 2016-17
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 FORTIETH ANNUAL GENERAL MEETING (POST - IPO) of the members of the Company held on Friday,
July 21, 2017 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
PLEASE SEE OVERLEAF FOR AVAILING FACILITY OF ONLINE PRE-REGISTRATION FOR ATTENDING THE ANNUAL GENERAL MEETING
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
Fortieth Annual General Meeting (Post - IPO) of the members of the Company to be held on Friday, July 21, 2017 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, 2017 and the Reports of the Board of
Directors and Auditors thereon
b) Audited Consolidated Financial Statement for the financial year ended March 31, 2017 and the Report of
Auditors thereon
2. Declaration of dividend on equity shares
3. Re-appointment of Smt. Nita M. Ambani, a Director retiring by rotation
4. Re-appointment of Shri Hital R. Meswani, a Director retiring by rotation
5. Appointment of Auditors and fixing their remuneration
6. Re-appointment of Shri Pawan Kumar Kapil as a Whole-time Director
7. Re-appointment of Shri Nikhil R. Meswani as a Whole-time Director
8. Re-appointment of Shri Yogendra P. Trivedi as an Independent Director
9. Re-appointment of Prof. Ashok Misra as an Independent Director
10. Re-appointment of Shri Mansingh L. Bhakta as an Independent Director
11. Re-appointment of Prof. Dipak C. Jain as an Independent Director
* Applicable for investors holding shares in electronic form.
P.T.O.
Facility of online pre-registration for attending the Annual General Meeting:
The Company is pleased to provide Web Check-in facility to its members to enable speedy and hassle free entry to the venue of the Annual General
Meeting (the “Meeting”). This facility offers online pre-registration of members for attending the Meeting and generates pre-printed Attendance
Slips for presentation at the venue of the Meeting.
Members may avail the said Web Check-in facility from 9:00 a.m. (IST) on July 17, 2017 to 5:00 p.m. (IST) on July 20, 2017.
The procedure to be followed for Web Check-in is as follows:
a.
b.
c.
d.
e.
f.
Log on to https://agm.karvy.com and click on “Web Check-in for General Meetings (AGM/EGM/CCM)”.
Select event / name of the company: Reliance Industries Limited
Pass through the security credentials, viz., DP ID / Client ID / Folio no. entry, and PAN No & “CAPTCHA” as directed by the system and
click on “Submit” button.
The system will validate the credentials. Then click on “Generate my Attendance Slip” button.
The Attendance Slip in PDF format will be generated.
Select the “PRINT” option for direct printing or download and save for printing the Attendance Slip.
Members completing Web Check-in successfully need not queue up at the registration counter(s) and are advised to use the dedicated counter(s)
being made available at the venue for attending the Meeting.
Members using Web Check-in facility are requested to carry their valid photo identity proofs along with the above referred Attendance Slip for
verification purpose.
Resolutions
For
Against
12. Re-appointment of Dr. Raghunath A. Mashelkar as an Independent Director
13. Appointment of Dr. Shumeet Banerji as an Independent Director
14. Alteration of Articles of Association
15. Ratification of the remuneration of the Cost Auditors for the financial year ending March 31, 2018
16. Approval of offer or invitation to subscribe to Redeemable Non-Convertible Debentures on private placement
Signed this..................... day of..................2017
Signature of shareholder
Affix a
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 (on poll) 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 / she so wishes. When a Member
6)
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.
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
2016-17
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
Board’s Report
Shareholders’ Referencer
Quality of Financial and
non-financial information in
the Annual Report
INFORMATION ON
COMPANY’S WEBSITE
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
INVESTOR SERVICES
Turnaround time for
response to shareholder’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
MANNU POST OFFICE
GACHIBOWLI, HYDERABAD – 500 032
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
Sir H.N. Reliance Foundation Hospital and Research Centre
SCALABLE, MULTI-USE IN-PATIENT AND
ISOLATION ROOMS
The In-Patient rooms are designed with the capability
to convert to a single-room step-down ICU. Dedicated
Isolation Rooms have been planned across in-
patient floors to accommodate patients with special
requirements.
FULLY-DIGITISED, INSTANT ACCESS TO
PATIENT MEDICAL RECORDS
The seamless integration of all radiology equipment,
HIS (Hospital Information Systems) and the PACS
(Picture Archiving and Communication System) ensures
real-time transfer of data and reports across hospital
systems.
NATIONAL AND INTERNATIONAL GREEN
BUILDING CONFORMANCE
The hospital harvests rainwater, re-uses water for
flushing after STP treatment, generate hot water from
waste heat and uses energy-efficient devices. It is the
first hospital to introduce mega AHUs. Sir H N Hospital is
the largest LEED Gold rated Green Hospital in Mumbai.
STATE-OF-THE-ART PLANNING, DESIGN,
ARCHITECTURE AND INFRASTRUCTURE
The hospital conforms to AIA design standards, ASHARE
for HVAC, NFPA for Medical Gases, the American
Disability Act, AERB for Radiation & Nuclear Medicine,
and the Drug Controller of India for the Blood Bank.
CUTTING-EDGE TECHNOLOGY,
EQUIPMENT AND RESOURCES
The OT Complex is truly ‘modular’, built to manage
infection, increase productivity, and adapt to future
technology changes. Emergency Medical Services
examines and treats patients all in one place. Imaging
modalities reduce radiation doses. The state-of-the-art
CT scan (which reduces radiation exposure) is Asia’s first,
and the world’s fifth. India’s first Pneumatic Tube system
transports medicines and materials, while separate,
parallel lines carry Bio-Medical Wastes.
HIGH-QUALITY CARE WITH
NO DIFFERENTIATION IN SERVICE
Clinical care across the hospital is standardised,
and transcends socio-economic status. The hospital
is Mumbai’s first to offer self-contained rooms
(toilets, showers, rest areas for relatives) to indigent
and subsidised patients.
Largest Gold Certified
Green Hospital in Mumbai
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.
Values and Behaviours that emerge
from this insight:
Customer Value and Excellence
Focus on unleashing the most
productive energies of our people and
enabling new leaders to emerge.
Values and Behaviours that emerge
from this insight:
Respect and One Team
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:
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
reason for our existence and the only
guarantee to our future. Everything
that we do must delight our customer,
each time and always.
We believe that without respecting
all our stakeholders there can be no
Reliance. We acknowledge that there
may be a difference of perspectives but
there must always be respect.
We are committed to excellence, in
spirit and action. We believe everything
that we do and everything we think
can always get better. We see all of
our activities in terms of our higher
purpose and ideals, which drives our
quest for excellence, always.
Whatever the strength of the
individual, we will accomplish more
together. We put the team ahead of
our personal success and commit to
building its capability. We trust each
other to deliver on our respective
obligations.
BSE • 500325
NSE • RELIANCE EQ
BLOOMBERG • RIL:IN
CIN • L17110MH1973PLC019786
Follow us at
We believe the success and reputation
of the company is paramount. Having
an ownership 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.
Upholding our reputation is paramount
as we are judged by how we act. We
are committed to be truthful in all
our actions. We strive to be honest
and forthright with one another and
with all our 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.
Registered Office
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai - 400 021
Tel: +91 22 2278 5000
Fax: +91 22 2278 5111
www.ril.com
)
n
i
.
l
c
i
a
@
o
f
n
i
(
l
c
i
a
-
s
t
n
a
t
l
u
s
n
o
c
e
v
i
t
a
e
r
c
/flameoftruth
/RelianceIndustriesLimited
/flameoftruth
/company/reliance
/+TheFlameOfTruth