Making Life Better.
For Everyone.
INTEGRATED ANNUAL REPORT
2017-18
Making Life Better.
For Everyone.
In 2017-18, Reliance completed 40 years of its IPO.
It was a celebration of visionary entrepreneurship,
global scale and all-encompassing value creation.
More importantly, it was an opportunity for us
to rededicate efforts to help build the India of
tomorrow and imagine a future that would see a
billion lives transformed.
True to our vision, we are working on ideas and initiatives
that will simplify lives. Collectively, Reliance's products
and services portfolio touches almost all Indians on a
daily basis, across economic and social spectrums. We
are leveraging technology and innovation to enrich our
offerings and ensuring that we provide ease of living
and working through what we do.
Our endeavours are also designed to enrich human
experience across every touch point. We are working
on the technologies of the future to provide seamless
access and a better quality of life. For all.
Finally, we are clear that all our efforts must converge
into real value creation for all our stakeholders.
We have demonstrated our ability to do so through
the financial returns we have delivered, the contribution
we have made to the country's exchequer and of course,
through the impact our social initiatives create.
For us, this philosophy is an article of faith and we shall
continue to progress on this path.
At Reliance, the world may have changed around us,
from when we first began, but our commitment and
vision have not. We have evolved from being a textiles
and polyester company to an integrated player across
energy, materials, retail, entertainment and digital
services. Yet, it feels like we have only just begun.
We are now focussed on building platforms that will
herald the Fourth Industrial Revolution and will create
opportunities and avenues for India and all its citizens
to realise their true potential. Historically, Reliance has
focussed on setting new industry benchmarks. When
we created the world's largest single location refinery
at Jamnagar, we put India on the global energy map and
created a national asset.
When we forayed into the retail business, we
accelerated the formalisation of an entire sector by
maximising supply chain efficiency. And, most recently,
when we entered the digital services business through
Jio, we have transformed the Indian telecom space,
and created globally unheard of benchmarks in terms
of subscriber acquisition, data consumption and
infrastructure ramp-up.
“For those who dare to
dream, there is a whole
world to win.”
Shri Dhirubhai H. Ambani
Founder Chairman
HIGHLIGHTS 2017-18
CONSOLIDATED
TURNOVER
CONSOLIDATED PROFIT
AFTER TAX
CONSOLIDATED CONTRIBUTION
TO NATIONAL EXCHEQUER
`4,30,731 crore
`36,075 crore
`86,942 crore
30.5% y-o-y growth
20.6% y-o-y growth
20.8% y-o-y growth
INSIDE THIS REPORT
CORPORATE OVERVIEW
MANAGEMENT REVIEW
Consolidated
2 Reliance at a Glance
4 Key Performance Indicators
6 Letter to Shareholders
10 Board of Directors
12 Making Life Better. For Everyone.
14 Business Model: Integrated Reporting +
16 Strategic Framework
18 Globally the Largest Capex at a Single
Refining and Petrochemical Site
19 People and Innovation
20 JioGenNext
21 Sports and Reliance
22 Reliance Foundation
24 Awards and Recognitions
25 Company Information
26 Product Flow Chart
28 Major Products and Brands
40 Financial Highlights
41 Management’s Discussion and Analysis
Report on Corporate Social Responsibility
164
345
Independent Auditors’ Report on
Consolidated Financial Statements
GOVERNANCE
180 Business Responsibility Report
194
Independent Reasonable Assurance on
Sustainability Disclosures
196 Corporate Governance Report
226 Board's Report
FINANCIAL STATEMENTS
Standalone
275
Independent Auditors’ Report on
Financial Statements
280 Balance Sheet
281 Statement of Profit and Loss
282 Statement of Changes in Equity
284 Cash Flow Statement
286 Notes to the Financial Statements
350 Consolidated Balance Sheet
351
Consolidated Statement
of Profit and Loss
Consolidated Statement of Changes in
Equity
352
354 Consolidated Cash Flow Statement
Notes to the Consolidated Financial
356
Statements
Salient Features of Financial
Statements of Subsidiary/Associates/
Joint Ventures
421
SHAREHOLDER INFORMATION
426 Notice of Annual General Meeting
Attendance Slip and Proxy Form
Members’ Feedback Form 2017-18
Letter to shareholders
6
Making Life Better.
For Everyone.
12
Reliance Foundation
22
ABOUT THIS REPORT
The Reliance Integrated Annual Report has
been prepared in alignment with the
Framework laid down by the International
Integrated Reporting Council. In preparing
the Report, GRI standard, NVG, United
Nations Sustainable Development Goals
and 10 other frameworks were referenced
and respected. The report outlines RIL's
commitment to stakeholder value creation
and defines the actions taken and
outcomes achieved for its stakeholders.
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/ar2017-18/index.html
2
Reliance at a Glance
RIL is India’s largest and most profitable private sector company.
RIL's growth story is unique in the scope and dimension of its contribution to nation building. Over the past four decades, the
achievements of the Company have catapulted it to the super league of global enterprises.
BUSINESS VERTICALS
Revenue
EBIT
(` in crore)
REFINING AND MARKETING
PETROCHEMICALS
OIL AND GAS (E&P)
`3,06,095
`25,869
`1,25,299
`21,179
`5,204
(`1,536)
Processes a wide variety of crude oil to
produce a range of petroleum products,
including transportation fuels, for
domestic as well as export markets
One of the most integrated
petrochemicals facilities globally,
with a wide product portfolio
India operations include conventional
on-land, shallow-water and deep-water
acreages, as well as unconventional
coal-bed methane block; international
presence in US shale gas business
GRM
US$11.6/bbl
Fuel outlets
1,313
30.8 MMT
Petrochemicals production
India's largest
surface footprint hydrocarbon project
48
56
66
RETAIL
DIGITAL SERVICES
MEDIA AND ENTERTAINMENT
`69,198
`2,064
`23,916
`3,174
`1,839
(`25)
India’s largest retailer with presence
across all consumption baskets; a
leading player in food, consumer
electronics and fashion retailing
Jio has built an all-IP data strong future-
proof network with the latest 4G LTE
technology; only network conceived as a
Mobile Video Network, supporting Voice
over LTE (VoLTE) technology
Network18 has its presence in television,
filmed entertainment, digital business,
magazines, mobile content and allied
businesses
1st Indian retailer to cross
US$10 billion
in revenue
186.6 million
India’s largest wireless
data subscriber base
74
India’s 3rd largest broadcaster,
reaching 90% of TV viewers
86
96
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice Reliance at a Glance
3
With deeply embedded values of integrity, safety and excellence, RIL is committed to sustainable growth through creating
value for the nation and enhancing quality of life across the socio-economic spectrum. Reliance endorses inclusive
development for all stakeholders and society at large.
SUSTAINABILITY AT THE CORE
ENVIRONMENT
PEOPLE
CSR
2 crore+ saplings planted till date
Zero fresh water consumption by
design at Jamnagar supersite
1,87,729 Reliance employees
50 lakh+ indirect jobs created
`771 crore CSR expenditure
73 billion litre rain water harvesting
capacity created since inception
VALUE DRIVERS FOR RIL
SCALE AND TECHNOLOGY
INNOVATION AND R&D
RELIANCE MANAGEMENT
SYSTEM (RMS)
World's largest refinery at a single location
Among the top 10 producers for key
petrochemicals
World's only Exabyte mobile network
`1,824 crore R&D expenditure
192 Patents filed
Strategic framework
Processes and requirements
Governance and risk assurance
Effective use of data and technology
VALUE ADDED IN FY 2017-18* (` in crore)
Value added is defined as the value created by the activities of a business and its employees
FY 2017-18
`1,13,632
crore
39,639
7,958
4,740
3,553**
745
56,997
FY 2016-17
`1,01,957
crore
36,635
Stakeholders
5,575
4,434
3,255
Contribution to National Exchequer
Reinvested in the Group to maintain
and develop operations
Providers of Debt
Employee Benefits
659
Providers of Equity Capital
Contribution to Society
51,399
* Standalone
** Dividend recommended for FY 2017-18 is `4,281 crore, including `728 crore as dividend distribution tax
Integrated Annual Report 2017–18
4
Key Performance Indicators
PROFIT AND LOSS METRICS (Consolidated)
BALANCE SHEET METRICS (Consolidated)
TURNOVER (` in crore)
30.5% y-o-y
NETWORTH (` in crore)
12.1% y-o-y
`2,89,798
Networth CAGR of 29.4%*
`4,30,731
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
4,30,731
3,30,180
2,93,298
3,88,494
4,46,339
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
PROFIT AFTER TAX (` in crore)
`36,075
20.6% y-o-y
Net Profit CAGR of 26.5%*
DEBT EQUITY RATIO
0.75
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
36,075
29,901
25,171
23,566
22,493
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
EARNINGS PER SHARE (`)
`60.9
20.3% y-o-y
BOOK VALUE PER SHARE (`)
`495.6
FY 2017-18 #
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
60.9
101.3
85.4
80.1
76.5
FY 2017-18 #
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
SHAREHOLDERS METRICS
MARKET CAPITALISATION (` in crore)
30.4% y-o-y
DIVIDEND PER SHARE (`)
`5,59,223
Market Capitalisation
CAGR of 31.4%*
`6.0
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
5,59,223
4,28,909
3,38,703
2,66,847
3,00,405
FY 2017-18 #
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
#Pursuant to issue of bonus shares during the year in the ratio of 1:1
* CAGR since IPO
2,89,798
2,58,511
2,31,556
2,18,482
1,98,670
0.75
0.75
0.78
0.74
0.70
11.3% y-o-y
495.6
891.2
785.5
742.3
675.9
6.0
11.0
10.5
10.0
9.5
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice Key Performance Indicators
5
SOCIAL METRICS (Standalone)
SOCIAL METRICS (Consolidated)
HSE EXPENDITURE (` in crore)
4.1% y-o-y
CONTRIBUTION TO NATIONAL EXCHEQUER (` in crore)
20.8% y-o-y
`382.6
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
`86,942
382.6
367.4
337.3
289.8
285.0
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
86,942
71,951
50,817
40,827
39,632
R&D EXPENDITURE (` in crore)
26.0% y-o-y
`1,824
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
Reliance Foundation transformed lives of
20 million people since inception. The amount
spent on CSR activities during FY 2017-18
was `771 crore, an increase of 14.4% from the
previous year expenditure of `674 crore.
1,824
1,448
1,259
1,220
1,218
CONSUMER BUSINESS METRICS
Retail Metrics
Digital Services Metrics (FY 2017-18)
NUMBER OF STORES
NUMBER OF JIO SUBSCRIBERS (in million)
7,573
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
RETAIL AREA (million sq. ft.)
17.7
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
7,573
3,616
3,245
2,621
1,691
17.7
13.5
12.8
12.5
11.7
186.6
Q4
Q3
Q2
186.6
160.1
138.6
WIRELESS DATA CONSUMPTION (in crore GB per quarter)
506
Q4
Q3
Q2
VOICE ON NETWORK (crore minutes per day)
414
Consumer businesses now contribute 13.1%
of consolidated segment EBITDA
Q4
Q3
Q2
506
431
378
414
338
267
Integrated Annual Report 2017–18 6
Letter to Shareholders
Dear Fellow Shareowners,
Our motto “Growth is Life” aptly captures the ever-evolving spirit of
Reliance. All our businesses endeavors to deliver superior value to our
stakeholders and make life better for everyone.
Mukesh D. Ambani
Chairman and Managing Director
I am happy to tell you that we have again delivered
outstanding performances on both financial and operational
parameters across all our business segments. FY 2017-18
turned out to be a watershed year in the history of Reliance.
Our new-age consumer businesses achieved leadership
positions nationally – their growth rates outpacing the best
in the world. Jio, now the world’s largest and fastest growing
mobile data network, stunned the world and made us proud
by turning profitable in the very first year of operations.
Reliance Retail is the only Indian retailer to rank among
the world’s Top 200 global retail chains. Our energy and
materials businesses successfully completed one of the
world’s largest, most complex, and most innovative projects,
achieving a level of integration that is unprecedented
globally.
Yes, we have made a spectacular start to our Golden Decade.
In a world full of volatility, uncertainty, complexity and
ambiguity, these achievements are indeed commendable.
I thank and congratulate everyone at Reliance for this feat.
The global economy is now growing at its fastest pace since
2010, with the upturn becoming increasingly synchronised
across countries. The world economy is expected to
strengthen further in 2018 and 2019, with economic
growth projected to rise to about 4%, from 3.7% in 2017.
Stronger investment, the rebound in global trade and higher
employment are helping make the recovery increasingly
broad-based. This long-awaited lift, supported by policy
stimulus, is being accompanied by solid employment
gains, a moderate upturn in investment and a pick-up in
trade growth. The continued rise in global trade was led by
pickup in import demand in developed markets. Growing
protectionism impacting trading relations and geo-political
tensions in parts of Asia are a key area of concern.
India’s economy maintained its strong growth in FY 2017-
18 – the Gross Domestic Product growth was 6.7%, with
a strong 7.7% increase in the last quarter of the year. With
the ‘One Nation, One Tax’ GST regime being implemented,
and gradually stabilising by the second half of the year, the
economy witnessed upsurge in investments, consumption,
as well as government spending. Industrial activity
rebounded, and services indicators too showed positive
trends. Thanks to a series of policy initiatives, India moved
into the world’s Top 100 countries in terms of ease of doing
business. The country also retained its position as a favoured
destination for foreign capital, with gross foreign direct
investment inflows of $64.6 bn in 2017.
Reliance improved on its last year’s record performance
to post a 20.6% jump in net profit to ₹36,075 crore ($5.5
billion). It also became the first Indian company to record an
EBITDA of over $10 billion, with our key businesses – Refining
& Marketing, Petrochemicals, Retail and Digital Services –
achieving record earnings performance.
The year saw our consumer businesses attain a threshold,
wherefrom they will start contributing meaningfully to
consolidated profits. From a mere 2% in FY 2016-17, Jio and
Retail accounted for 13.1% of RIL’s consolidated Segment
EBITDA in FY 2017-18. This was achieved notwithstanding a
sharp 33.6% spurt in consolidated EBITDA to ₹74,184 crore.
Our aim is to have the consumer businesses contribute on
par with the energy and materials business over the next
decade, when we celebrate our Golden Jubilee.
The refining and petrochemical businesses posted record
level of profitability owing to expanded capacities, high
operating rates, and improved cost competitiveness. The
refining business improved upon the preceding year’s
strong Gross Refining Margins (GRMs). The petrochemicals
segment posted a significant jump in profits due to higher
volumes from expanded capacities and better margins.
Refining & Marketing
Globally, oil demand grew at the rate of 1.6 mb/d in CY 2017,
with Asia alone accounting for close to two-thirds of the total
growth. Oil demand in India grew 5.3% in FY 2017-18, similar
to the 5.4% growth of FY 2016-17. The transportation sector
drove the overall demand in India, with gasoline demand
rising 10%, aviation fuel growing 9%, and diesel 6.6%. LPG
demand grew 8% in FY 2017-18, reflecting an increase in
household penetration.
With economic activity picking up across the world, the
global oil demand outlook for 2018 continues to remain
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice Letter to Shareholders
7
strong. IEA has forecast that in 2018, the world will consume
an additional 1.4 mb/d of crude oil. The growing global
demand and reducing inventories augur well for the refining
industry over the next 12-18 months.
The refining and marketing segment reported a 3.2%
increase in EBIT, climbing to its highest ever level of ₹25,869
crore ($4.0 billion). The GRMs for the year rose to a nine-year
high of $11.6/bbl, climbing from last year’s $11.0/bbl.
RIL’s GRM outperformed the Singapore complex margins
by $4.4/bbl. In FY 2017-18, the Singapore complex margin
averaged $7.2/bbl, compared to $5.8/bbl in FY 2016-17,
owing to strong product cracks aided by firm oil demand
growth and lagging refining capacity additions.
We have maintained the highest safety standards and
relentlessly strived to improve energy efficiency and
minimise operating and maintenance costs. We have ensured
adoption of latest developments in technology to improve
asset reliability and avoid unplanned outages, thereby
enabling high on-stream factor.
Reliance has constructed the world’s largest petcoke
gasification unit at Jamnagar – one of the most complex
projects that has integrated as many as 83 process units with
refineries and other downstream units. These process units
operate in extreme conditions, with temperatures ranging
from (-)190°C to (+)1480°C, and pressure fluctuating from
vacuum to 120 standard atmosphere. This project will bring
the full benefit of bottom-of-the-barrel conversion to our
refining business and further boost profitability.
The gasification unit linked to the refinery in DTA is
currently undergoing trial operations to ensure steady
and reliable syngas supply to the Jamnagar complex. The
SEZ gasification is under commissioning. RIL continued to
re-commission its network of retail fuel stations. It now has
1,313 operational outlets. Improving quality of the customer
base, a swift transition to dynamic pricing, and continuing
focus on quality have allowed Petro Retail to bolster its
performance.
Making life better for everyone.
Petrochemicals
FY 2017-18 saw stabilisation of the ethane import project and
commissioning of the large projects at Jamnagar – refinery
off-gas cracker, PX expansion, and other downstream
capacities. These projects took refinery-petrochemicals
integration to an unprecedented level globally. The
commissioning of the Jamnagar projects, one of the world’s
most complex set of projects, in significantly lesser time
and lower cost than comparable projects worldwide, further
endorsed RIL’s world-class project execution capability.
The petrochemicals segment benefited from expanded
capacities as various projects commenced operations
through the year. The segment’s EBIT increased sharply
by 63% to its highest ever ₹21,179 crore ($3.2 billion).
Production increased 23.7% to 30.8 MMT. The EBIT margins
increased sharply to a record level of 16.9% from 14.0%
of last year, owing to favourable product deltas across the
integrated polyester chain, PP and PVC.
The refinery off-gas cracker and its downstream PE and
MEG units were successfully stabilised in the last quarter
of FY 2017-18. With the improved availability of products,
enhanced reliability in operations, and feedstock flexibility,
RIL further strengthened its capability to serve the Indian
market – one of the fastest growing polymer markets in the
world.
In the polyester value chain, demand outpaced capacity
additions in FY 2017-18 and enabled integrated players like
Reliance post healthy operating rates and improved margins
despite the rising costs. China’s ban on imports of recycled
polyester supported the demand growth of virgin polyester.
Our Petrochemicals business has progressed further on
the expression of ‘Chemistry for Smiles’. We have created
R|Elan™, a portfolio of specialty fabrics, a perfect blend of
“art” and “smart” and launched eco-friendly products based
on recycled PET bottles.
Making life better for everyone.
Oil & Gas
Our Oil & Gas business continued to face headwinds owing
to declining volumes and soft prices that improved towards
end of the year. Volumes from conventional fields and US
Shale were lower on account of natural decline and slowdown
in development activity. Our domestic production was down
16.9% at 78.9 Bcfe, whereas the US Shale volume fell 19.7%
to 139.7 Bcfe.
On the positive side, Reliance is poised to become one of
the largest non-conventional gas producers in India with the
ramp up of CBM production that crossed 1 MMSCMD. To
sustain production, the second phase of development has
also commenced.
Reliance and its partner announced plans to invest ₹40,000
crore (~$6 billion) to develop the already discovered deep-
water gas fields in the KG-D6 Block. Development work for
R-Cluster fields has commenced. Satellite fields and Other
Satellite fields will be developed in an integrated manner as a
cluster project. With these fields, we will venture into ultra-
deepwater and High Pressure, High Temperature areas – a
first in India.
In our US Shale Gas business, the natural gas prices were firm
during the year, with offtake from LNG and Mexican exports.
However, the business conditions remained challenging and
we continued with the strategy of ‘fit for purpose’ capital
expenditure.
Integrated Annual Report 2017–18 8
Digital Services
Jio’s next generation all-IP data network with the latest
4G-LTE technology created history, transforming not
just the Indian telecom industry but the whole country.
Within months of Jio’s launch, India shot up to World No.1
in mobile data consumption. Jio has become the world’s
largest and fastest growing mobile data network, boasting
an unprecedented level of consumer engagement. More
subscribers were added to Jio’s network in the last year than
all other operators combined. Equally important, Jio turned
profitable in the very first year of operations. Jio earned a net
profit of ₹723 crore on turnover of ₹23,714 crore in its first
year of commercial operations.
Jio continued with its strong subscriber growth, with
186.6 million customers at the end of March 2018, and the
lowest churn in the industry at 0.25% per month. Each Jio
subscriber on an average consumes 9.7 GB data, 716 minutes
of voice calls, and 13.8 hours of video per month.
Jio’s end-to-end all-IP network is the most differentiated
network with functionalities such as SDN and NFV, and has
been consistently rated as the fastest network in India by
TRAI’s MySpeed application over the last 15 months. Jio’s
average download speed of 17.9 Mbps is more than twice the
network speed available on any other network. Jio has also
been consistently rated to have the widest LTE coverage
in the country. During FY 2017-18, it continued expanding
the 4G network coverage, and further deepening in existing
areas to achieve a 99% population coverage.
Jio is constantly striving to enrich the digital experience of
its customers through innovative applications developed in-
house, or in collaboration with the unique ecosystem of small
and large partners.
Making life better for everyone.
Jio offers its subscribers unique content such as
PyeongChang 2018 Olympic Winter Games, Jio Cricket Play
Along, etc. The MyJio app is the most popular self-care app
with over 150 million downloads and substantial additional
features. Jio has forged partnerships with the likes of Balaji
Telefilms, Eros International and Saavn to bring unique
content with an intuitive user interface to every Indian.
The Company continues to make progress on delivering
enterprise solutions, FTTH and IOT, with beta trials initiated
in a few locations. These services are being offered using the
existing integrated network and platforms.
During the year, Jio was awarded the 1st rank in India
and 17th globally in the Fast Company’s World’s 50 Most
Innovative Companies list for 2018. Jio also won the “Best
Mobile Operator Service for Consumers” award at the
recent Mobile World Congress 2018. It was awarded “The
Disruptors” title in the CNBC TV18’s India Business Leader
Awards 2018. JioTV won the “Best Mobile Video Content”
award at the Global Mobile Awards 2018.
Reliance Retail
Reliance Retail has become the first retailer in India to cross
the $10 billion revenue milestone and enter the world’s Top
200 Retail chains. We have the best reach, the best formats,
and the best customer acceptance in India. Reliance Retail is
India’s largest retailer by revenue and profitability, delivering
superior value to its customers, suppliers and other
stakeholders.
Making life better for everyone.
Over the past five years, the business has grown at a massive
45% annually – doubling every two years. Reliance Retail
ranks among the world’s Top 5 fastest-growing retailers.
Last year alone, Reliance Retail operationalised 3,736 Jio
Points across 3,700 cities to enhance its distribution reach
for consumer durables and connectivity solutions – an
unprecedented feat in India.
Reliance Retail, which operates in four key consumption
baskets, viz. Grocery, Consumer Electronics & Connectivity,
Fashion & Lifestyle, and Fuel Retail, is expanding in every
market, every format and every vertical. Today, we are
present in more than 4,400 cities, covering 17.7 million sq. ft
of retail space.
Strong Cash Flows and Balance Sheet
Reliance became India’s first company to cross $10 billion
in EBITDA in FY 2017-18. As the Company executed India’s
largest-ever capital expenditure programme over the past
five years, the cash profit for the year was up over 31% to
₹56,034 crore, setting stage for the next growth phase of
company’s earnings cycle.
The Company’s debt-equity ratio remained at a conservative
level. We have retained our domestic credit ratings of ‘CRISIL
AAA’ from CRISIL and ‘IND AAA’ from India Rating. For our
international debt, we have an investment grade ‘Baa2’
rating from Moody’s, and ‘BBB+’ from S&P. We maintained
the ratings even as Reliance went through a large investment
cycle over the past five years.
Reliance is globally acknowledged for its unique and
innovative approach in fund-raising. It maintains strong
relationships with a large number of international banks,
financial institutions and export credit agencies. This, along
with our efficient cash flow management and fiscal discipline,
have helped us raise funds at competitive rates and optimise
borrowing costs.
Governance & Safety
RIL differentiates itself as an employer of choice. An
integrated wellness programme for employees has been
implemented in the Company through medical services and
related initiatives. We are committed to providing a healthy
and safe work environment to employees, contractors, and
all visitors.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice Letter to Shareholders
9
We started the Change Agents for Safety Health and
Environment (CASHe) programme more than a decade
ago. Ever since, the CASHe programme has evolved into a
movement encompassing the entire enterprise comprising
thousands of improvement projects.
Our ambition is: “Reliance shall strive to be a leader in the
field of management of Health, Safety and Environment”.
The Jamnagar expansion project has achieved better
than international benchmarks in quality, safety, cost
and schedule. Further, new records for flawless start-ups
and commissioning have been established. RIL is globally
certified as a ‘Healthy Workplace’ for the period 2017-2019
by the Global Centre for Healthy Workplaces, Tucson, USA.
Making life better for everyone.
Sustainable Growth and Societal Responsibility
The Reliance DNA ensures businesses solve problems and
also create societal value for all Indians. In the 40 years of our
journey since listing, we have strived to conduct businesses
in a manner that is sustainable and inclusive. When we
started with textiles, we provided the best-in-quality fabrics
to every Indian. Our petrochemical products have a role to
play in almost every aspect of modern life. When we entered
the refining business, we provided high spec fuels for Indian
and global markets. When we entered telecom, we strived
to provide mobile phones in the hand of every Indian at an
affordable rate. Through Reliance Retail, we have made the
best-in-class global brands available to every section of our
society. And now, with Jio, with the backdrop of inclusivity,
we have made available high-speed data to every Indian at
the most affordable rates, with zero call charge forever.
Making life better for everyone.
Investment in Emerging Technologies
Reliance believes that new technologies and data power will
help unleash the potential of India’s human capital.
Making life better for everyone.
RIL is piloting the use of Virtual Reality (VR) to increase
safety and reliability through a virtual walkthrough plant
environment for interactive training, testing and process
simulation for all crucial personnel.
RIL is implementing a world-class analytics platform and a
data lake using the best-in-breed technologies for its Big
Data initiatives. Multiple advanced-stage pilots are being
undertaken to establish extensive use of machine learning
and artificial intelligence with a view of long-term adoption
and institutionalisation.
Conclusion
Over the last four decades, Reliance has continued to grow
and evolve, creating value by building competitive global-
scale businesses and delivering increasing shareholder value.
Over the past 3-4 years, we made significant investments in
new plants, thus creating organic growth platforms for our
energy and materials businesses. Our new-age businesses
have shown strong resilience and sustainable growth
potential for 1.3 billion Indians, as well as for Reliance, and will
surely script a glorious chapter in our Golden Decade.
I would like to thank all my colleagues for their dedication,
innovation and hard work. By creating new benchmarks in
the businesses we operate in, our team is delivering on our
mission to generate sustainable value for our stakeholders
and India. These efforts also help us to deliver inclusive
growth and make life better for everyone.
Our operational framework has been to integrate the six
capitals – Natural, Human, Manufactured, Intellectual,
Financial, and Social & Relationship – throughout the
organisation and create value for our stakeholders.
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.
An integral part of Reliance’s philosophy is its commitment
to empower and enhance the quality of lives of millions of
people. Sustainability at Reliance embraces environmental
and social responsibility while creating value for its
stakeholders. On the operations side, we are working to
maximise use of clean energy and minimise the carbon
footprint in collaboration with the best available technology
licensors. Reliance Foundation is deeply involved in the
areas of rural transformation, health, education, sports for
development, disaster response, urban renewal, and arts,
culture and heritage. The initiatives of Reliance Foundation
have positively impacted 20 million lives across the nation
and we work incessantly to include all stakeholders in our
growth story.
Making life better for everyone.
With best wishes,
Sincerely,
Mukesh D. Ambani
Chairman and Managing Director
May 21, 2018
Integrated Annual Report 2017–18
10
Board of Directors
Shri Mukesh D. Ambani
Chairman and
Managing Director
Smt. Nita M. Ambani
Non-Executive,
Non-Independent Director
Shri Mansingh L. Bhakta
Lead Independent Director
Chairman: Finance Committee
Shri Yogendra P. Trivedi
Independent Director
Prof. Dipak C. Jain
Independent Director
Prof. Ashok Misra
Independent Director
Dr. Raghunath A. Mashelkar
Independent Director
Chairman: Audit Committee,
Stakeholders’ Relationship
Committee, Corporate Social
Responsibility and Governance
Committee
Member: Human Resources,
Nomination and Remuneration
Committee
Member: Stakeholders’
Relationship Committee
and Health, Safety and
Environment Committee
Member: Audit Committee,
Human Resources, Nomination
and Remuneration Committee,
Corporate Social Responsibility
and Governance Committee and
Health, Safety and Environment
Committee
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice Board of Directors
11
Shri Adil Zainulbhai
Independent Director
Shri Raminder Singh Gujral
Independent Director
Shri Shumeet Banerji
Independent Director
Chairman: Human
Resources, Nomination and
Remuneration Committee
and Risk Management
Committee
Member: Audit Committee
Member: Audit
Committee and Human
Resources, Nomination
and Remuneration
Committee
Member: Corporate
Social Responsibility
and Governance
Committee and Human
Resources,Nomination and
Remuneration Committee
Shri Nikhil R. Meswani
Executive Director
Shri Hital R. Meswani
Executive Director
Shri P. M. S. Prasad
Executive Director
Shri Pawan Kumar Kapil
Executive Director
Member: Stakeholders’
Relationship Committee,
Corporate Social
Responsibility and
Governance Committee and
Finance Committee
Chairman: Health, Safety and
Environment Committee
Member: Stakeholders’
Relationship Committee,
Finance Committee and Risk
Management Committee
Member: Health, Safety and
Environment Committee and
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
Integrated Annual Report 2017–18 12
Making Life Better. For Everyone.
DIGITAL SERVICES
186.6 million
JIO SUBSCRIBERS
86
MEDIA & ENTERTAINMENT
700 million
VIEWERSHIP REACH
OF NETWORKS18'S TV
CHANNELS
96
RETAIL
350 million
FOOTFALLS ACROSS
RETAIL STORES
DURING
THE YEAR
132
Making a difference for farmers
PVC pipes for irrigation – Better durability
Mulch Films – Enhancing productivity for cotton cultivation
CBM water for irrigation – Recycling of water to be used for irrigation
Adding value through consumer products
R|Elan – Next generation fibre
Recron Fibre Fill – Mattresses, pillows and blankets
Relpol – Container for food and beverages
Relflex – Elastomers for automobiles
Unmatched price-value proposition
Reliance Jio – Ecosystem of devices, applications and networks
Reliance Fresh – Neighbourhood grocery store
Reliance Smart – Supermarket - One stop solution for all daily needs
Reliance Footprint – Wide range of footwear, handbags and accessories
Reliance Trends – Diversified portfolio of apparel and accessories
Reliance Digital – Consumer Electronics and Home Appliances
Touching lives of millions of Indians
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice Making Life Better. For Everyone.
Connecting people and businesses
Reliance Gas, Reliance Aviation – Transportation fuels
Voice and Video connectivity via Jio digital services platform
Recron® 3S – Materials for road infrastructure
News18, Colors, JioTV, Jio Cinema, JioMusic – News and
Entertainment
Trans-connect – Fleet management solutions
Delighting families
Project Eve / Trends Woman – Fashion for new age women
Aavaran – Technology enabled safety pendant
Nickelodeon, Hamleys – Fun and learning for kids
40+ international brands – Bringing the best of international
fashion to India
Partnering for India’s development
Education and Sports for All
World-class medical facilities and schools
Topper Learning, Embibe for digital learning
Employment generation across sectors
Sustainable, environment friendly growth
Touching lives of millions of Indians
Board of Directors
13
REFINING & MARKETING
1.5%
OF GLOBAL
TRANSPORTATION
FUEL
132
PETROCHEMICALS
2 billion
POST-CONSUMER PET
BOTTLES RECYCLED
ANNUALLY
56
RELIANCE
FOUNDATION
20 million
LIVES TRANSFORMED
SINCE INCEPTION
164
Integrated Annual Report 2017–18 14
Business Model: Integrated Reporting +
RIL Growth For All
Inputs
Process
NATURAL CAPITAL
Sourcing responsibly and using natural
resources efficiently
2 crore + of saplings planted
HUMAN CAPITAL
Developing people and their knowledge with
necessary skilling and re-skilling programmes
57 lakh+ man-hours of training imparted
Employees from 15+ nationalities
1,87,729 employees on payroll
INTELLECTUAL CAPITAL
Strengthening and future-proofing the Company with
the team’s business experience and research insights
`1,824 crore spent on R&D
1,20,000 sq ft. area for R&D headquarters
900+ scientists and engineers
MANUFACTURED CAPITAL
World-class manufacturing facilities and supply
chain infrastructure to meet customer and
business demands
World's largest refinery and petrochemical site at
a single location
17.7 million sq ft. coverage area (retail)
FINANCIAL CAPITAL
Generating returns for stakeholders through
effective mobilisation and utilisation of
financial resources
Capital expenditure `79,253 crore
SOCIAL AND RELATIONSHIP CAPITAL
Building and nurturing relationships with
consumers, suppliers and communities in
which the Company operates
`14,070 crore spent on indigenous suppliers
`771 crore spent on CSR initiatives
48
56
66
Refining and Marketing
Petrochemicals
Oil and Gas Exploration
and Production
External
Environment
Pg 42-43
Strategy
Pg 16-17 & 107
Business Model
Inputs
Business
Differentiators
Deliverables
Outcomes
Digital
Platforms
Pg 159
Performance
Pg 46-103
Enterprise Risk
Management
Pg 152-158
74
86
96
Retail
Digital
Services
Media and
Entertainment
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice Vision
Through sustainable measures, Reliance creates value for the nation, enhances quality of life across the entire
socio-economic spectrum and helps spearhead India as a global leader in all the domains where it operates.
Business Model: Integrated Reporting +
15
Outputs
Outcomes
United Nations
SDGs
Reference to Other
Frameworks
Goals & Targets
7.3 crore m3 rainwater
harvesting capacity
69,364 (000' m3) water recycled
3,004.0 (000’ GJ) energy saved
6,200+ Ha of greenbelt
Mitigating global warming
Promoting use of eco-friendly fuels
Resource stewardship
Almost 21,000 ideas under Mission
Healthier and safer working
Kurukshetra
environment
Large future-ready skilled workforce
Enhanced employee engagement
Bringing inclusiveness in education
Enhanced workforce demographics
192 patents filed
68 patents granted
Driving innovation culture
Concerted collaborations
Breakthrough R&D
30.8 MMT petrochemical production
US$11.6 /bbl gross refining margin
7,573 retail stores operated
1,313 fuel outlets operated
350 million footfall in retail stores
World-class infrastructure facilities
Energy security
Top quartile performance
Product stewardship
Strong supplier relationships
Revenue of `4,30,731 crore
PBDIT of `74,184 crore
PAT of `36,075 crore
`5,59,223 crore market capitalisation
CAGR of 31.4% since IPO
Enhanced ROCE
Sustainable cash flows
IPIECA, UNGC,
WBCSD, GHG,
TCFD, NCC
Protocol, UNGP
and PMO's
initiatives
supported by
NITI Aayog
IPIECA, UNGC,
NVG, UNGP
and PMO's
initiatives
supported by
NITI Aayog
Clean Energy
Management
of
Environmental
Impact
Waste
Management
Water
Management
Opportunity
& Diversity
Health
Safety
WBCSD
Asset
Utilisation
PMO's initiatives
supported by
NITI Aayog
Supply Chain
Management
Product
Stewardship
TCFD
`86,942 crore contribution to
national exchequer
29 start-ups supported
Outreach of 20 million people
13,500+ villages and 100+ urban
areas impacted
Building sustainable livelihoods
Enhanced quality of life of people
Effective stakeholder engagement
Better customer satisfaction
Digital inclusion
Customer
Satisfaction
Community
Development
IPIECA, UNGC,
NVG, WBCSD,
UNGP, SROI
and PMO's
initiatives
supported by
NITI Aayog
Value Creation
RIL's business model and outcomes are aligned with the integrated reporting framework of the
International Integrated Reporting Council (IIRC), the United Nations Sustainability Development
Goals (SDGs) and 12 other established and emerging frameworks.
View linkages
150
Integrated Annual Report 2017–18 16
Strategic Framework
REFINING AND MARKETING
PETROCHEMICALS
OIL AND GAS (E&P)
STRATEGY
Consistent Growth
Delivering Value
Driving Innovation
Sustainable Transformation In Society
Largest single-site refinery with robust configuration
Consistently maintaining high refinery utilisation and
delivering superior refining margins
Among lowest cost producer globally with flexible
product slate
Engaging with local communities to provide
employment and improve living standards
Presence in one of the fastest growing markets
One of the most integrated petrochemicals producers
globally with industry leading profitability
State-of-the-art production facilities with balanced
cracker portfolio
Wide product portfolio with leadership position across
product categories
Developing deep water resources in KG-D6 block
Partnership with industry leading players in domestic
blocks and US shale
Operating one of most complex and largest deep water
block KG-D6
Ramping up unconventional CBM production
SHAREHOLDER VALUE
EMPLOYEE VALUE
SOCIETAL VALUE
`5,59,223 crore
Market Capitalisation
15+ nationalities
Represented in the employee base
50 lakh+
Indirect employment generation
31.4%
Market Capitalisation CAGR,
since IPO
57 lakh+
Man hours of training imparted
`86,942 crore
Consolidated contribution to
national exchequer
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice Strategic Framework
17
FIVE ENABLERS
Ethics
Safety
Digital technology
Capital productivity
Operational efficiency and effectiveness
India's largest retail infrastructure and supply chain
providing solid foundation for growth
RETAIL
Deploying omni-channel model to enhance the
customer experience and reach
Tie-ups with international brands to bring the best-in-
class products to Indian market
Expanding the reach to tier 2 and tier 3 cities to touch
lives of Indians everyday
World’s largest and fastest growing mobile
DIGITAL SERVICES
data network
Transformative customer value propositions
Fully digitised operations from onboarding
through fulfillment
Only ubiquitous 4G coverage in India with high speed
and quality coverage
Network18 aims to create unparalleled reach to enable
tapping the unexplored segment of population
MEDIA AND ENTERTAINMENT
No. 1 news network by reach
Building strategic alliances with local and global bests in
the media industry
Robust bouquet of channels across various genres -
business, entertainment, infotainment and kids
CUSTOMER VALUE
186.6 million
Jio subscribers
1 in every 2 Indians
Is a consumer of media content; Network18’s
TV channels touch lives of 70 crore Indians
Transforming India's telecom
landscape with a compelling customer
value proposition
7,573
Retail stores across 4,400+ cities
Read more about Strategic
Framework on page 106-107
Integrated Annual Report 2017–18 18
Globally the Largest Capex
at a Single Refining and Petrochemical Site
RIL’s Jamnagar Phase 3 (J3) expansion is nearing completion at a record-setting pace. It is one of the world’s most
complex and highly integrated projects. J3 has redefined refining and petrochemicals integration with full bottom of
the barrel conversion. It has established a new benchmark for the industry.
PUTTING J3 AND ITS SCALE IN PERSPECTIVE
Concrete used
equivalent to
13x
Burj Khalifas
3.5 million m3
Steel used
equivalent to
59x
Eiffel Towers
4,60,000 MT
Pipes laid
equivalent to
2x
the length of India
6,300 km
14 million
engineering man hours
1,200 million
construction man hours
~1,50,000
peak manpower mobilised
PX4 (PARAXYLENE 4)
PETCOKE GASIFICATION
Largest Paraxylene project globally,
Jamnagar is the PX capital of the world
with capability to produce nearly 12,500
tonnes per day (TPD) of Paraxylene
Most complex project with multiple
process units (83 units) spread
over DTA and SEZ; integrated with
downstream units for use of Syngas
ROGC
(REFINERY OFF-GAS CRACKER)
World’s largest off-gas cracker &
downstream PE and MEG units
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice People and Innovation
RELIANCE DNA
India
focussed
First to
deliver on a
global scale
Organic
growth
Globally the Largest Capex | People and Innovation
19
Faster
execution
Game
changing
initiatives
in new areas
Focus on
customer
value
Total number of Reliance employees
Exponentially high indirect employment
1,87,729
50 lakh+
EMPLOYEE ENGAGEMENT
Spirit of celebrating together
Listening to our employees
Over 1.5 lakh employees and
their family members were part
of Reliance Family Day, India's
biggest corporate celebration
The biennial R-Voice
employee engagement survey
has resulted in an improved
score of 84% in 2016
Reliance Family Day Celebration
LEARNING AND DEVELOPMENT AND
AUGMENTING CAPABILITIES
Learnet & Lynda.com:
Collaborative and device-
agnostic platform
Future ready workforce
through social structure
DIVERSITY AND INCLUSION
ACROSS GENERATION, GENDER
AND JURISDICTION
57 lakh+
manhour training provided
Collaboration with
World-class Universities
Over 40%
millennials
People from over
15 nationalities
Recognised as one of the 25 companies in the
‘LinkedIn Top Companies 2018: Where India
Wants to Work Now’ list
Certified as ‘Healthy Workplace’ for 2017-19
by the Global Centre for Healthy Workplaces
INNOVATION PROGRAMMES
43 LEAP lectures since
inception
About 30 workshops
across locations
Almost 21,000
employee ideas
Use of design thinking
and innovation tools
Programme to build
innovation capabilities
Integrated Annual Report 2017–18 20
JioGenNext
About the programme
JioGenNext is a bridge for start-ups to explore
various engagements with Jio / Reliance
Industries Limited (RIL) business units via pilots,
commercial partnerships, joint Go-To-Market
(GTM), strategic investments or a combination
thereof.
JioGenNext provides a unique model of
‘Customer-as-a-Mentor’, which enables start-
ups to launch their businesses in the Jio/RIL
ecosystem at scale and grow rapidly along with
Jio/RIL. Over the past 4 years, it has perfected
this model by closely engaging with all the
relevant stakeholders in the RIL/Jio ecosystem.
Testimonials
Key metrics
6
Cohorts till date
75+
Mentors
30+
Engagements
with RIL
6,000+
Start-up Applications
80
Start-ups selected
Impact
JioGenNext is enabling India’s start-up
ecosystem to flourish during the Fourth
Industrial Revolution.
Some key trends that will enable the
Fourth Industrial Revolution include
Artificial Intelligence (AI), robotics and
services, digital presence, big data,
smart cities, wearable Internet, IoT and
the sharing economy, among others.
The start-ups selected are expected to
transform these domains.
Read more
141
Mayank Chauhan
Co-Founder,
LogicLadder
Sahil Sachdeva
Co-Founder,
Jiny
Ayushi Mishra
Co-Founder,
DronaMaps
JioGenNext has been a great learning
experience. We have got direct
opportunity to pitch our solution to RIL
leadership and this helped us sharpen our
pitch to other large enterprise customers.
JioGenNext also helped us develop Proofs
of Concept (PoCs) with RIL immediately.
The mentoring that we got from the
JioGenNext team was invaluable and all
the coaching that we got until now has
helped us to get new insights for our
product improvement.
JioGenNext helped us in two very
important ways. First, they brought in
the best mentors to conduct sessions,
who equipped us with invaluable practical
knowledge on how to create and grow a
company. Second, JioGenNext introduced
us to various leaders in Jio, who met us
individually and helped us find a use-
case in Jio for our product, and it was a
tremendous success. We created a quick
PoC, which successfully got converted into
a commercial contract. This wouldn’t have
been possible without JioGenNext.
The market we belong to is still nascent and
evolving; therefore, operational strategy
is key to survival. JioGenNext has been a
great help in terms of refining our operating
model and giving us mentorship. In that
sense, our experience was exceptional.
The sectorial break-up of
the 80 start-ups engaged
so far is as follows:
34 Enterprise Solutions
16 Retail and Logistics
Sectors
30 Digital Consumer
Services
Majority of the 80 start-ups
are mapped against the
deep shifts of the Fourth
Industrial Revolution, a
term coined by the World
Economic Forum.
35 Digital Presence
8 Big Data
8 Internet of Things
9 Artificial Intelligence
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice
JioGenNext | Sports and Reliance
21
Sports and Reliance
Reliance has been an ardent promoter of sports and continues to nurture talent in this space. Over the years, Reliance has
promoted and brought to success several initiatives across the sporting landscape.
INDIAN SUPER LEAGUE (ISL)
Promoted by IMG-Reliance and Star India, Indian Super
League (ISL) is India's premier football championship that has
received worldwide recognition.
173 million people watched ISL 2017-18 on TV and 1.3 million
spectators attended matches across different stadia.
IPL TEAM - MUMBAI INDIANS
Reliance owns and operates the ‘Mumbai Indians’ (MI)
franchise of the Indian Premier League (IPL) organised by the
Board of Control for Cricket in India (BCCI).
MI is among the most successful franchisees in the IPL,
winning the championship in 2013, 2015 and 2017.
TENNIS
IMG Reliance owns and operates India’s premium sporting event and South Asia’s only
ATP World Tour 250 Event since 1996. The longest running ATP World Tour Event in
South Asia celebrated its 20th anniversary in 2015 and moved to its new home in Pune
to continue its legacy by hosting the 23rd edition - ‘Tata Open Maharashtra’.
SPORTS FACILITIES AT
RELIANCE
To foster team spirit and build healthy
camaraderie among its employees,
Reliance has sports and recreation
facilities at all its sites and its corporate
office. The state-of-the-art sports
facilities include cricket stadiums, tennis
and basketball courts and football turfs
along with other indoor sport spaces.
Full-size Cricket stadium located at Reliance Corporate Park, Navi Mumbai
Ensuring drinking water supply during Assam floods
Integrated Annual Report 2017–18 22
Reliance Foundation
Reliance Foundation was instituted with a vision to build an inclusive India. Most CSR activities of RIL are
carried out under the umbrella of Reliance Foundation. Led by Smt. Nita M. Ambani, Reliance Foundation
has a comprehensive approach towards the nation's development. The Foundation addresses some of
India’s most pressing development challenges, with the aim of building better lives and improving the
livelihood of the people for a stronger and inclusive India.
FOCUSSING ON CREATING CHANGE IN THE FOLLOWING AREAS:
RURAL TRANSFORMATION
1.2 million+ livelihoods enhanced
7,000 Ha of land brought under sustainable
agricultural practices
Water harvesting and conservation
More than 13,000 villages across 12 states
are now covered through RF Livelihood
Information Services
4.8 million*
rural livelihoods enhanced
HEALTH
0.44 million health consultations provided
1,207 visually impaired individuals
supported with eye care services
4 million*
health consultations given
EDUCATION
16,000 students benefitted through
14 Reliance Foundation schools
713 talented students were awarded
scholarships
13,644*
scholarships provided
Village community meeting
Health outreach programme
Education for the next generation
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice DISASTER RESPONSE
10,000 individuals provided relief in the flood-
affected areas of Assam
4 villages adopted for rehabilitation beyond
the relief efforts in the flood-affected areas
of Gujarat
27,000 fishermen saved by the early warning
advisories during Ockhi cyclone in Southern India
Over 1,50,000 Lakh individuals supported
through disaster relief efforts in Gujarat
1,87,000+
individuals supported
SPORTS FOR DEVELOPMENT
10,000 + schools are now part of RF Jr. NBA
Programme
48 talented young football players were awarded
scholarships under the RF Young Champs
programme
4.7 million youth impacted by the RF Youth Sports
programme
9 million*
youth inspired to adopt a healthy lifestyle
ARTS, CULTURE AND HERITAGE
Supported 8 Prahar, an event dedicated to
Indian classical music
Supported Abbaji, the annual concert
organised by Ustad Zakir Hussain in the
memory of Ustad Allah Rakha Khan
Reliance Foundation
23
Providing immediate relief and rehabilitation during disasters
Young Champs programme promoting sports
* since inception
Read more about RIL's CSR
initiatives on page 164
Promoting Indian art globally
Integrated Annual Report 2017–18 24
Awards and Recognitions
LEADERSHIP
Shri Mukesh D. Ambani won the
ET Business Leader award for
Corporate Excellence in 2017
Shri Mukesh D. Ambani ranked
among Fortune magazine's 50
Greatest Leaders of 2018
Shri Mukesh D. Ambani is the
only Indian business leader to
be ranked among the World’s
75 Most Powerful People by
Forbes magazine
RETAIL
Reliance Digital was awarded
‘Consumer Durables Retailer
of the Year’ at Star Retailer
Awards
DIGITAL SERVICE
Reliance Jio ranked 17th in the
American business magazine
Fast Company’s 50 Most
Innovative Companies list
in 2018
Smt. Nita M. Ambani, Founder
and Chairperson of Reliance
Foundation, felicitated by
Metropolitan Museum of Art
Won ‘Global Game-Changer
Award’ in the seventh edition
of the Marico Innovation
Foundation Awards 2018
Reliance Foundation was
awarded ‘Rashtriya Khel
Protsahan Puruskar’ by the
Honourable President of India
MEDIA
CNBC-TV18 was awarded the
ENBA Best Business channel
award and the show India
Business Hour won the Best
Business Program award
ENERGY AND WATER
CONSERVATION
EFFICIENCY
CAPITAL
RESOURCES
First petrochemical complex
in India to achieve CII
‘GreenCo Gold’ certification
Received The Asset
Corporate Award – Platinum
Award, 2017
HEALTH, SAFETY
AND ENVIRONMENT
Globally certified as a
‘Healthy Workplace’ by
Global Centre for Healthy
Workplaces, Tucson, USA
TECHNOLOGY,
PATENTS, R&D AND
INNOVATION
Received the Drivers of Change
award at the FT ArcelorMittal
Boldness in Business Awards
SUSTAINABILITY
Won the best Sustainable
Corporate of the year 2018 at
the Sustainability 4.0 awards
by Frost and Sullivan and TERI
WBCSD's Reporting Matters
recognised RIL's Sustainability
Report as a leading example in
the aspect of "Reliability"
Received Commendation for
Significant Achievement in
Corporate Excellence from
CII in Sustainability
CORPORATE SOCIAL
RESPONSIBILITY
Since its inception, the
Reliance Foundation
has achieved several
prestigious awards for
positively impacting the
lives of millions
Won the 'Golden
Peacock 2017 Award'
for CSR
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice 25
Company Information
Board of Directors
Chairman and Managing Director
Mukesh D. Ambani
Independent Directors
Mansingh L. Bhakta
Yogendra P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Non Independent Director
Nita M. Ambani
Chief Financial Officer
Alok Agarwal
Joint Chief Financial Officer
Srikanth Venkatachari
Auditors
D T S & Associates
S R B C & Co. LLP
Executive Directors
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
Group Company Secretary
and Chief Compliance
Officer
K. Sethuraman
Solicitors & Advocates
Kanga & Co.
Committees
Audit Committee
Yogendra P. Trivedi (Chairman)
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Human Resources,
Nomination and Remuneration
Committee
Adil Zainulbhai (Chairman)
Yogendra P. Trivedi
Dr. Raghunath A. Mashelkar
Raminder Singh Gujral
Dr. Shumeet Banerji
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. Raghunath A. Mashelkar
Dr. Shumeet Banerji
Health, Safety and
Environment Committee
Hital R. Meswani (Chairman)
P. M. S. Prasad
Pawan Kumar Kapil
Prof. Ashok Misra
Dr. Raghunath A. Mashelkar
Risk Management
Committee
Adil Zainulbhai (Chairman)
Hital R. Meswani
P. M. S. Prasad
Alok Agarwal
Srikanth Venkatachari
Finance Committee
Mukesh D. Ambani (Chairman)
Nikhil R. Meswani
Hital R. Meswani
Bankers
Allahabad Bank
Andhra Bank
Bank of America N.A.
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Citibank
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
Patalganga Manufacturing Division
B-1 to B-5 & A3, MIDC Industrial
Area, P. O. Rasayani, Patalganga
– 410 220, District Raigad,
Maharashtra, India
Nagothane Manufacturing Division
P. O. Petrochemicals Township,
Nagothane - 402 125, Roha Taluka,
District Raigad,
Maharashtra, India
Vadodara
Manufacturing Division
P. O. Petrochemicals,
Vadodara - 391 346,
Gujarat, India
Registered Office
3rd Floor, Maker Chambers IV, 222, Nariman Point,
Mumbai 400 021, India
Tel: +91 22 3555 5000 | Fax: +91-22-2204 2268 /+91-22-2285 2214
e-mail: investor.relations@ril.com
| Website: www.ril.com
Registrars & Transfer Agents
Karvy Computershare Private Limited, Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Financial District, Nanakramguda, Hyderabad 500 032, India
Tel: +91 40 6716 1700 | Toll Free No.: 1800 425 8998 | Fax: +91 40 6716 1680
e-mail: rilinvestor@karvy.com Website : www.karvy.com
41st Annual General Meeting (Post-IPO) on Thursday, July 5, 2018 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
Integrated Annual Report 2017–18 Awards and Recognition | Company Information
26
Product Flow Chart
Natural Gas
Crude Oil
Light Ends
Middle Distillate
Solids/ Fuels
Offgas
LPG
Propane
Naphtha
Refinery C4’s
Gasoline
Jet/Kero Diesel
Fuel Oil / CBFS
Pet Coke
Sulphur
Ethane
B
Ethane/
Propane
A
Ethylene (C2)
EDC
EO
LDPE
HDPE/LLDPE
Propylene (C3)
PP
MTBE
C4's
Butene-1
Butadiene
Benzene
C6+
Toluene
Xylenes
VCM
PVC
Salt
Chlorine
Caustic
TEG
DEG
Styrene
SBR
PBR
LAB
Orthoxylene Paraxylene
Normal Paraffin
Kerosene
MEG
PTA
Acetic Acid
PET
Polyester Chips
Filament
POY
PTY
FDY
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
New Products
Advanced Materials & Composites (Acquired during the Year)
PE
PP
SBR PBR PVC PET
Glass Fibre
Carbon Fibre
Graphene/ other 2D additives
Carbon & Glass Textiles
Thermoset Resin
Formulations
Advanced Materials
Composites
Example: RelWOOD, High Gloss PP, Enhanced Elastomers
Example: Windmill blades, Metro & Railway facades & interiors
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice 27
Jamnagar Expansion Projects
A
Petcoke Gasification
B
Butyl Rubber
Pet Coke
Refinery C4’s
Syngas
Sulphur
HPIB
Butene-1
Hydrogen
SNG
Halogen
Butyl rubber
Halobutyl rubber
Purchased Raw Materials
Partly Purchased Raw Materials
Existing Products
New Products
CBFS
Carbon black feedstock
DEG
EDC
EO
FDY
Di-Ethylene Glycol
Ethylene Di-Chloride
Ethylene Oxide
Fully Drawn Yarn
HDPE
High Density Polyethylene
LAB
Linear Alkyl Benzene
LPG
MEG
Liquified Petroleum Gas
Mono-Ethylene Glycol
MTBE
Methyl Tertiary Butyl Ether
PBR
PET
PE
PFF
Poly Butadiene Rubber
Polyethylene Terephthalate
Polyethylene
Polyester Fibre Fill
LDPE
Low Density Polyethylene
POY
Partially Oriented Yarn
LLDPE
Linear Low-density Polyethylene
PP
Polypropylene
PSF
PTA
PTY
PVC
SBR
SNG
TEG
VCM
HPIB
Polyester Staple Fibre
Purified Terephthalic Acid
Polyester Textured Yarn
PolyVinyl Chloride
Styrene Butadiene Rubber
Synthetic Natural Gas
Tri-Ethylene Glycol
Vinyl Chloride monomer
High Purity Isobutylene
Integrated Annual Report 2017–18Product Flow Chart 28
Major Products and Brands
Refining and Marketing
Logo
Refining
Business / Brand
Product / Service
End Uses
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
Reliance
Aviation
Transportation fuels
Retail distribution of fuels
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
Relstar
Foods
Lubricants
Passengers amenities/food court on highways
Lubricants
Petrochemicals
Logo
Business / Brand
Polymers
Product / Service
End Uses
Repol
Polypropylene (PP)
Woven sacks, leno bags, TQ & BOPP films, films and
containers, components for automobile and consumer
durables, moulded furniture
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice 29
Petrochemicals
Logo
Business / Brand
Polymers
Product / Service
End Uses
Relene
Polyethylene (HDPE,
LLDPE & LDPE)
Woven sacks, raschel bags, containers, industrial crates &
containers, carrier bags, housewares, ropes & twines, pipes
Reon
Polyvinyl Chloride (PVC)
Relpipe
Poly-Olefin HDPE and
PPR pipes
Pipes & fittings; door & window profiles, insulation &
sheathing for wire & cables, footwear, flooring, partitions,
roofing
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
Polybutadiene Rubber (PBR)
Automotive Tyres, Tyre treads, Conveyor & V-Belts, Sports
Goods & Dock Fenders
Styrene Butadiene Rubber (SBR)
Tyres, Footwear, Conveyor belts, Hoses & Mechanical
rubber goods
A superior wood substitute that looks
& feels like wood but, is much stronger.
It is made from a unique Composite of
Natural Fibres, Polymers & Specialised
Blends of additives, using patented
German Technology
RelWood™ can be moulded to make flowing construction,
installations and furniture for indoor as well as outdoor
usage
RelX
Composites
Windmill Blades, Rotor Blades, Modular Buildings, GRP
piping systems
Chemicals
Relab
Linear Alkyl Benzene (LAB)
Detergents
Polyester & Fibre Intermediates
Paraxylene (PX)
Raw material for PTA
Purified Terephthalic Acid (PTA)
Raw material for polyester
Mono Ethylene Glycol (MEG)
Raw material for polyester
Portfolio of Speciality
new-age Fabrics
Apparels
Polyester Staple Fibres, Polyester
Filament Yarns, Speciality Polyesters
Apparel, Home textiles, Technical textiles & Non-wovens
R|Elan™
Recron®
Integrated Annual Report 2017–18Major Products and Brands
30
Logo
Business / Brand
Product / Service
End Uses
Polyester & Fibre Intermediates
Recron® IDY
Polyester high-tenacity industrial
yarns
Conveyor belts, ropes, geo-grids, seat-belts, lashings,
slings, industrial fabrics
Recron® SHT
Polyester Super High Tenacity Fibres Hi-Strength, Low-shrinkage Sewing threads for apparel,
home and industrial applications
Recron® Fancyy
Innovative Polyester Filament Yarns Value-added fine quality fashion fabrics with unique weave
patterns, textures and hand-feel
Recron® Stretch
Stretch yarns for comfortable fit
and freedom of movement
Denim, shirting, suiting, dress material, T-shirt, sportswear,
swimwear, medical bandages & diapers
Recron® Cotluk
Cotton Look, Cotton Feel Yarns
Dress material, shirting, suiting, furnishing fabric, curtain &
bed sheet
Recron® Dyefast
Recron®
Superblack
Can dye at boiling water
temperature with high colour
fastness
Dope dyed black
with high consistency in shade
Recron® Superdye
Bright, brilliant colours
and soft feel, low pill
Ladies outerwear, feather yarn for knitted cardigan,
decorative fabric & home furnishing
Apparel, automotive, non-woven & interlining
Woven & knitted apparel, furnishing & home textile
Recron® Kooltex
Moisture management yarns
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
Sleep and comfort products, Furniture, Toys & Beddings
Secondary Reinforcement Products Construction industry, cement, paper industry, battery
industry, wall papers, wipes & hygiene products & Asbestos
replacement
Recron® Certified
Quality Certified Sleep Products
Pillows, cushions, blankets & quilts
Recron® FeelFresh
Anti microbial fibres & yarns
Active sportswear, Intimate apparel, socks, home furnishings
& garments used in healthcare industry
Recron® Recrobulk Hi-bulk fibres for soft-feel &
Sweaters, pullovers, cardigans, shawls & jackets
warmth
Recron®
GreenGold
Eco-friendly fibres made from 100%
post-consumer polyester waste
Apparel & home textiles
Recron® RecoSilk
Speciality Polyester Filament Yarns
Recron®FS
Flame retardant Fibres & Yarns
Recron® Exclk
Yarns for naturally Soft
Silken hand feel
Recron® EcoD
High standard eco-friendly dying
process to give unbeatable washing,
sublimation & perspiration fastness
Relpet®
Polyethylene Terephthalate (PET)
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
Apparels
Apparels
Packaging for bottled water, beverages, confectionary,
pharmaceutical, agro-chemical and food products
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice 31
Oil and Gas Exploration and Production
Logo
Business / Brand
Product / Service
End Uses
Crude Oil and Natural Gas
Refining, power, fertilisers, petrochemicals and other industries
Retail
Logo
Owned
Business / Brand
Product / Service
End Uses
Ajio
Jio Stores
Project Eve
Reliance Digital
Online fashion store
Speciality Store for mobility &
communication
Apparel speciality store
Electronics speciality store
Reliance Footprint
Footwear speciality store
Reliance Fresh
Neighbourhood store
Reliance Jewels
Jewellery speciality store
Reliance Market
Wholesale cash & carry store
Reliance Resq
Reliance Smart
Consumer electronics after sales
service provider
Supermarket
Reliance Smart.in
Online grocery store
Curated online fashion store offering apparels, accessories, footwear
and much more
Latest assortment of mobiles, tablets, laptops, accessories
Speciality stores catering to entire fashion & lifestyle needs of women
Offering wide range of consumer electronics, home appliances,
entertainment, gaming merchandise
Speciality stores dealing in footwear, handbags and accessories
Dealing in fresh fruits & vegetables, food, grocery and items of
daily use
Fine jewellery with offerings across gold, silver, diamond, precious
stones and other precious metals
Dealing in grocery, clothing, footwear, electronics and general
merchandise
Service provider for consumer electronic products
Dealing in fresh fruits & vegetables, food, clothing, footwear,
electronics and general merchandise
Dealing in fresh fruits & vegetables, food and general merchandise
In-store Brand
Reliance Trends
Reliance Trends
Woman
Avaasa
DNMX
Netplay
Performax
Point Cove
Teamspirit
LYF
Apparel speciality store
Apparel speciality store
Offers wide range of apparel, handbags, footwear and accessories
Offers curated collections of Indian women wear and accessories
Ethnic Indianwear inspired by Indian
ethos and art forms
Denim inspired casuals
Apparel for women
Apparel for men, women and children
Smart casuals for the free spirited
Apparel for men
Activewear for sports and fitness
Apparel and footwear for men, women and children
Smart casuals for kids inspired by
California
Apparel for children
Sport Inspired Casualwear
Apparel for men, women and children
4G Mobile Handsets and
Connectivity Devices
Mobile and connectivity devices
Reconnect
Exclusive Brand from Reliance Digital
Electronic gadgets and accessories
Enzo Matic
Detergent Powder brand
Detergent
Best Farms
Premium Grade Farm Produce brand Food
Good Life
Clean, Hygienic and Wholesome
products brand
Food
Integrated Annual Report 2017–18Major Products and Brands 32
Logo
Business / Brand
Product / Service
End Uses
Exclusive Brand Partnership
Armani Exchange
Bally
Bottega Veneta
Brooks Brothers
Canali
Unisex casual wear brand from the
Armani house, its global in spirit, this
is a brand for the young citizens
Casual wear, Denims
World’s second oldest luxury brand
Shoes, bags and fashion accessories
Italian Luxury accessories brand,
founded in 1966, known for discretion,
quality, and craftsmanship
American iconic brand that has
redefined & shaped classic American
style for nearly two centuries
Tailor-made Italian luxury men’s wear,
leader for more than 80 years.
Luxury bags, Shoes, Accessories
Apparel and accessories for men
Men’s formal wear
Cherokee
Iconic American family lifestyle brand Apparel and accessories for kids
Coach
DC
Diesel
Dune
Emporio Armani
Ermenegildo
Zegna
Flormar
Furla
Giorgio Armani
GAS
G Star Raw
Hamleys
Hugo Boss
Hunkemoller
Founded in 1941, Coach is a leading
design house of modern luxury
accessories and lifestyle collections
with an all-American attitude
American sportswear brand inspired by
skateboarding and snowboarding
Iconic Italian lifestyle brand
Distinctive fashion footwear &
accessories
Emporio Armani is a sub label of
Giorgio Armani, includes ready-to-
wear clothes, sunglasses, perfume,
accessories and watches.
Italian luxury men’s clothing
Leading beauty and colour cosmetic
brand
Furla deals in Italian handbags,
shoes and accessories since 1927.
These collections are constructed
with high quality craftsmanship and
contemporary style
Italian label founded in 1975, known
for clean tailored lines and unisex
occasion wear
Italian clothing brand offering quality
products for intelligent, aware
consumers, with an international,
cosmopolitan attitude
G-Star RAW is a Dutch designer
clothing company, known for
technologically advanced denims
The finest toy shop in the world
German brand founded in 1924,
Sophisticated, modern and iconic
Men’s wear label, market leaders in
the upper premium segment of the
global apparel market.
Leading European lingerie brand
Bags & Accessories
Apparel, accessories, footwear and skateboards
Apparel, accessories and footwear
Accessories and footwear for men and women
Luxury Men’s wear and Women’s wear
Apparel, accessories and footwear for men
Colour cosmetic products
Luxury Bags, Shoes and Accessories
Luxury Men’s wear and Women’s wear
Apparel, accessories and footwear for men & women
Denim, casual wear
Toys
Men’s wear, formal and semi formal
Lingerie, nightwear, swimwear and accessories
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice 33
Logo
Business / Brand
Product / Service
End Uses
Exclusive Brand Partnership
ICONIX
Istore
Jimmy Choo
Kate Spade
Diversified portfolio of fashion and home
brands
Exclusive Apple Products Store
Apparel, footwear, accessory and home fashion
Mobile, Laptops and Connectivity Devices
Jimmy Choo is a 21st century luxury
accessories brand, with shoes at its heart,
more than 150 stores and is present in the
most prestigious department and specialty
stores worldwide
Accessible luxury for women
Women’s footwear and accessories
Handbags, small leather goods, apparel and footwear
Marks & Spencer
Iconic British lifestyle brand
Apparel for women, men and children, lingerie, beauty and
home décor
Michael Kors
MUJI
Luxury accessories and ready-to-wear
brand established in 1981. Products include
accessories, footwear, watches, jewelry,
men’s and women’s ready-to-wear apparel,
eyewear and a full line of fragrance products.
Iconic Japanese lifestyle brand
Bags, Footwear and accessories
Accessories, home, apparel, travel, beauty, stationery, etc.
Paul & Shark
Italian luxury and casual sportswear brand
Apparel, accessories and footwear for men
Paul Smith
Payless
Paul Smith is Britain’s foremost designer,
he combines tradition and modernity for
his Men’s wear high fashion and formalwear
label
Affordable fashion footwear specialty store
Men’s formal wear
Footwear, handbags and accessories
Thomas Pink
British shirt authority
Apparel and accessories for men
Quiksilver
Roxy
Premium youth Lifestyle and culture clothing
brand representing action sports
Global lifestyle brand, offering products for
every aspect of an active girl’s life
Apparel, accessories, footwear, skateboards and surfboards
Apparel, accessories, swimwear and footwear for girls
Scotch & Soda
European couture brand
Shoes, bags and fashion accessories
Steve Madden
Superdry
TUMI
Villeroy & Boch
Vision Express
Fashion forward Footwear & Accessories
Brand
Fashion brand that fuses design influences
from Japanese graphics and vintage
Americana, with the values of British tailoring
Founded in 1975, leading international
business, accessory and travel lifestyle
brand.
Luxurious and timeless pieces since 1748
for bathroom and wellness, tableware and
tiling. Headquartered in Germany, this large
manufacturer of ceramics specialises in innovative
products
Optical specialty store
Accessories and footwear for men and women
Apparel, accessories and footwear
Travel bags, wallets and Bags
Tableware
Spectacles, sunglasses, contact lenses and eyewear care
accessories
Integrated Annual Report 2017–18Major Products and Brands 34
Textiles
Logo
Owned
Business / Brand
Product / Service
End Uses
Only Vimal
Suitings, Shirtings, Readymade
Garments
Fabrics, Apparel and Accessories
MarcoMancini
Suitings, Shirtings
Fabrics
Protector
Anti-dust, Anti-Microbial, Quick
Stain Release & Anti-Pollen Fabric
Finish Technology
Fabrics and Apparel
Only Vimal Sarees
Sarees
Sarees and Dress Material for Women
Vimal Gifting
D-Creased
Ready-to-stitch, take away fabric in
gift packs
Fabrics
Smooth and Wrinkle-Free Fabric
Finish Technology
Fabrics and Apparel
nice
V2
DEO2
Cool Moisture-Absorb Fabric Finish
Technology
Fabrics and Apparel
Ready-to-stitch,
Take away fabric
Fabrics
Anti-Microbial Fabric Finish
Technology
Fabrics and Apparel
Licensed
Georgia Gullini
Suitings, Shirtings
Fabrics, Apparel and Accessories
Digital Services
Logo
Business / Brand
Brand Logo
Product / Service
End Uses
Jio
MyJio
JioTV
Connected Intelligence
Manage your Jio account
Jio is an ecosystem - of best-in-class devices, applications
and networks. a network effect by design
An Omni app for - everything from signing up and paying bills
to topping up and managing account
Live and Catch Up TV on the move Watch 580+ LIVE TV Channels on your smartphones and
tablets.
JioCinema
Entertainment at your fingertips
JioMusic
Music for you. Anytime, Anywhere
A vast library of Movies, TV Shows, Originals, music videos &
content across 10+ languages and genres on phone, tablet,
TV and website.
Stream & download unlimited Ad-free HD Music from one
of the largest library of songs across various languages and
genres
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice 35
Logo
Business / Brand
Product / Service
End Uses
Brand Logo
JioMags
Premium and Popular magazines
Rich library of premium magazines to provide an experience
of reading a real magazine
JioXpressNews
OTT News aggregator app
Stay updated with latest news from 500+ sources in 10+
Indian languages,
JioChat
Free Chat, SMS, Voice & Video Call
An OTT app with Interface in 10 Indian languages and unique
features like multi-party video conferencing, audio and video
notes etc.
Store and access your files from
anywhere
Store online securely all your photos, videos, docs, songs
organised at one place
JioCloud
Jio4GVoice
JioMoney
Experience cash-free living
VoLTE & Rich Communication on all
phones
A telco-grade smartphone app enables customers to enjoy
Jio’s latest services like HD Voice, Video calls, SMS on non-
VoLTE devices
Digitising everyday consumer transactions – simple smart,
and secure payments
JioSecurity
Protect your phone, secure your data Power against threats to digital life. Protects your device 24x7
proactively against risk apps and virus attacks
JioNewsPaper
Digital Newspapers from 100s of
cities
Daily newspapers from multiple cities - both Indian and
International.
JioNet
Gateway to India’s largest Wi-Fi
network
Gateway to blazingly fast Wi-Fi network
JioHealthHub
Your digital health vault
Easy and Secure way to digitally store categorise, manage and
share Health Data
Jioswitch
Secure File Transfer & Share
Easy to use data transfer application. Supports a wide range
of file types to transfer from one smartphone to another
JioGST
GST Service Provider
Easy and safe GST compliance (create, manage, and reconcile
GST-related financial / compliance documents).
Media and Entertainment
Logo
Business / Brand
TV Channels
Product / Service
End Uses
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
Integrated Annual Report 2017–18Major Products and Brands 36
Logo
Business / Brand
Product / Service
End Uses
TV Channels
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
News18 Lokmat
Marathi News Channel
National and International news for Marathi viewers
News18 Urdu
Regional News Channel
Urdu news channel
News18 Rajasthan
Regional News Channel
Rajasthani news channel
News18
Bihar Jharkhand
News18
Uttar Pradesh
Uttarakhand
News18
Madhya Pradesh
Chhattisgarh
News18
Gujarati
News18
Kannada
News18
Bangla
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
Regional News Channel
Bangla news channel
News18 Odiya
Regional News Channel
Oriya news channel
News18 Punjab/
Haryana/ Himachal
Regional News Channel
Regional news for Punjab, Haryana and Himachal Pradesh
News18 Tamil Nadu
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
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice 37
Logo
Business / Brand
Product / Service
End Uses
TV Channels
Colors
Hindi general Entertainment Channel Hindi mass entertainment channel
Colors Infinity
English Entertainment Channel
English entertainment channel
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
Comedy destination for kids
Sonic
Kids Channel
Action and adventure entertainment for kids and young adults
Nickelodeon Junior
Kids Channel
Entertainment aimed at pre-school kids
Colors Marathi
Regional Entertainment Channel
Marathi entertainment channel
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
Integrated Annual Report 2017–18Major Products and Brands 38
Logo
Business / Brand
Product / Service
End Uses
TV Channels
Colors Tamil
Regional Entertainment Channel
Tamil Entertainment channel
History TV18
Infotainment Channel
Factual Entertainment channel
fyiTV18
Infotainment Channel
Lifestyle channel
Filmed Entertainment
Viacom18 Motion
Pictures
Filmed Entertainment
Acquisition, production, syndication, marketing and
distribution of full length feature films within India and
distribution of Indian films in several international markets
Content Asset Monetisation
IndiaCast
Multi-platform ‘Content Asset
Monetisation’ entity
International Channel distribution, advertising sales on
international Channels and content Syndication
Digital Content
Moneycontrol
Finance portal
News18.com
General News portal
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
Infotainment
In.com
News and entertainment portal
Content & videos of Network18 entertainment channels
and websites and popular third party websites
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
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice 39
Logo
Business / Brand
Product / Service
End Uses
Publishing Business
Forbes India
Business publication
Magazine for Business/Financial News & Analysis
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
Colosceum
Production House
Content producers specialising in TV and filmed entertainment
Capital 18
Investment
Investment arm of Network18
Others
Mumbai Indians
Leading IPL cricket team
Sports
Indian Super League India’s Premier Football Event
Sports
Reliance Foundation CSR arm of Reliance group
Philanthropic Initiatives
Sir H. N. Reliance
Foundation Hospital
Hospital
Hospital to provide international quality healthcare services
Reliance Foundation
Youth Sports
Platform to promote a sporting
culture in schools and colleges
Enabling the ecosystem of school and college sports through
talent identification, development, infrastructure and skill
development
Reliance Foundation
Young Champs
Scholarship based football and
education programme
Building India’s Footballing Future
Reliance Foundation
Jr. NBA
India’s largest grassroots
Basketball Initiative
Mass participation Sports initiative
Integrated Annual Report 2017–18Major Products and Brands 40
Financial Highlights
RIL Standalone
` in crore
$ Mn 2017-18
16-17
15-16
14-15 13 -14 12 -13
11-12 10 -11 09 -10 08 - 09
Value of Sales & Services (Revenue)
48,386 3,15,357 2,65,041 2,51,241 3,40,814 4,01,302 3,71,119 3,39,792 2,58,651 2,00,400 1,46,328
Total Income
48,110 3,13,555 2,73,750 2,59,062 3,49,535 4,10,238 3,79,117 3,45,984 2,61,703 2,02,860 1,48,388
Earnings Before
Depreciation,Finance Cost and Tax
Expenses(EBDIT)
9,200
59,961
51,965
47,168
40,323
39,813
38,785
39,811
41,178
33,041
25,374
Depreciation and Amortisation
1,470
9,580
8,465
8,590
8,488
8,789
9,465
11,394
13,608
10,497
5,195
Exceptional Items
Profit For the Year
Equity Dividend %
Dividend Payout
Equity Share Capital
Equity Share Suspense Account
-
-
-
-
-
-
-
-
-
-
(370)
5,157
33,612
31,425
27,384
22,719
21,984
21,003
20,040
20,286
16,236
15,309
-
499
972
-
110
3,255
-
-
105
100
95
90
85
80
70
130
3,095
2,944
2,793
2,643
2,531
2,385
2,084
1,897
6,335
3,251
3,240
3,236
3,232
3,229
3,271
3,273
3,270
1,574
-
-
-
-
-
-
-
-
-
69
Reserves and Surplus
47,305 3,08,312 2,85,062 2,50,758 2,12,923 1,93,842 1,76,766 1,62,825 1,48,267 1,33,901 1,24,730
Net Worth
Gross Fixed Assets
Net Fixed Assets
Total Assets
Market Capitalisation
Number of Employees
48,042 3,13,114 2,83,288 2,53,998 2,16,159 1,97,074 1,79,995 1,66,096 1,51,540 1,37,171 1,26,373
69,427 4,52,492 4,30,093 3,93,117 3,11,815 2,64,281 2,32,270 2,05,493 2,21,252 2,28,004 2,18,673
46,099 3,00,447 2,87,319 2,58,448 1,90,316 1,51,122 1,28,864 1,21,477 1,55,526 1,65,399 1,69,387
94,749 6,17,525 5,46,746 4,81,674 3,97,785 3,67,583 3,18,511 2,95,140 2,84,719 2,51,006 2,45,706
85,803 5,59,223 4,28,909 3,38,703 2,66,847 3,00,405 2,49,802 2,44,757 3,42,984 3,51,320 2,39,721
29,533
24,167
24,121
24,930
23,853
23,519
23,166
22,661
23,365
24,679
Contribution to National Exchequer
8,745
56,997
51,399
43,117
33,322
31,374
28,950
28,197
28,719
17,972
11,574
Key Indicators
Earnings Per Share - (`)
[excluding Exceptional item]
$ 2017-18
16-17
15-16
14-15
13-14
12-13
11-12
10-11
09-10
08-09
0.81
53.1*
96.9
84.6
70.2
68.0
64.8
61.2
62.0
49.7
49.7
Turnover Per Share - (`)
Book Value Per Share - (`)
7.64
7.62
497.8*
817.2
775.3 1,053.3 1,241.7 1,149.5 1,037.8
790.5
612.9
464.9
496.7*
889.0
784.4
668.0
609.8
557.5
507.3
463.2
419.5
401.5
Debt : Equity Ratio
EBDIT / Gross Turnover %
Net Profit Margin %
RONW % **
ROCE % **
0.37:1
0.37:1
0.42:1
0.45:1
0.45:1
0.40:1
0.41:1
0.44:1
0.46:1
0.63:1
19.0
10.7
15.5
28.7
19.6
11.9
17.1
25.4
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
5.7
12.8
11.2
11.7
5.9
13.4
11.6
15.9
7.8
15.5
13.2
16.5
8.1
16.4
13.9
17.3
10.5
21.6
20.3
In this Integrated Annual Report, $ denotes US$, unless otherwise stated
1US $ = ` 65.175 (Exchange rate as on 31.03.2018)
* Pursuant to issue of bonus shares during the year in the ratio of 1:1
** Adjusted for CWIP and revaluation
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview 1-40 Management Review Governance Financial Statements Notice Financial Highlights | Management’s Discussion and Analysis
41
Management’s Discussion and Analysis
Page No. Title
What’s Inside
42
43
46
48
56
66
74
86
96
Overview
Macro environment – global and domestic
Highlights and Key Events
Brief overview of business performance and other events during the year
Financial Performance and Review
Financial information (consolidated and standalone) and discussion on
key parameters
Y
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R
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Business Performance
Refining and Marketing
Petrochemicals
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
Oil and Gas Exploration and Production
Reliance’s business model and operational excellence helped achieve
Retail
Digital Services
Media and Entertainment
a strong overall financial performance. In addition, growth plans and
strategy is elaborated for each business segment
104
Liquidity and Capital Resources
Insights including Reliance’s financing strategy, resource raising, capital
and risk management framework
106
106
108
114
124
132
140
141
149
152
159
Sustainable Growth at Reliance – The
Integrated Approach
Strategic Framework
The Integrated Approach
Natural Capital
Human Capital
Intellectual Capital
Manufactured Capital
Financial Capital
Analysis and disclosure of Reliance’s approach towards sustainable
and responsible growth through the lens of International Integrated
reporting (“IR”) Framework, SDG, PMO’s initiatives supported by
the NITI Aayog and beyond. 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
Social and Relationship Capital
ability to create value over time - short, medium and long-term
Reliance's Sustainability Reporting
Journey
Risk and Governance
Digital Platforms
160
Awards and Recognitions
163
Glossary
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 has built a
scalable 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
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Integrated Annual Report 2017–18
42
Management’s Discussion and Analysis
Forward Looking Statement
The report contains forward-looking statements, identified
by words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’,
‘intends’, ‘projects’, ‘estimates’ and so on. All statements
that address expectations or projections about the future,
but not limited to the Company’s strategy for growth,
product development, market position, expenditures and
financial results, are forward-looking statements. Since
these are based on certain assumptions and expectations of
future events, the Company cannot guarantee that these are
accurate or will be realised. The Company’s actual results,
performance or achievements could thus differ from those
projected in any forward-looking statements. The Company
assumes no responsibility to publicly amend, modify or
revise any such statements on the basis of subsequent
developments, information or events. The Company
disclaims any obligation to update these forward-looking
statements, except as may be required by law.
Overview
Global
Global economic recovery gathered pace, with the world
economy growing at 3.7% in CY 2017, aided by across-the-
board recovery in developed economies, i.e. United States,
European Union and Japan. Growth in Non-OECD markets,
however, remained modest. Green shoots of trade recovery
that was seen towards the end of CY 2016, continued in CY
2017, aided by the recovery in global demand and a sustained
increase in major commodity prices. The sustained rise
in global trade was led by a pickup in import demand in
developed markets. While this augurs well for underlying
demand trends, there are risks emerging from rising
protectionism and trade tensions between major economies,
and from geo-political developments in North East Asia and
the Middle East.
Growth accelerated in the US as the economy approached
full employment, labor markets tightened and inflation
started creeping higher. The US Federal Reserve continued
with the interest rate normalisation cycle in FY 2017-18 by
increasing rates thrice, in Jun 2017, Dec 2017 and Mar 2018.
The world is slowly coming out of the low interest rate and
abundant liquidity regime as advanced economies normalise
monetary policy.
Global oil demand growth remained robust at 1.6 million
barrels per day (mb/d) in CY 2017 led by demand recovery
in the OECD countries and healthy growth in demand from
China and India. Gasoline demand trends remained robust,
contributing around 68% of oil demand growth in the OECD
countries. Global oil price strengthened 18% in FY 2017-18,
supported by the OPEC non-OPEC co-operation to extend
the oil production scale-back to 32.5 mb/d till the end of
2018.
Petrochemicals sector globally continued to see high cracker
utilisation levels driven by firm product demand across
key markets. Global demand for key polymer products
(PE, PP and PVC) grew by 4.1% during 2017, led by India and
China. Polymer margins remained healthy during the year
supported by sustained demand.
India
FY 2017-18 marked a significant economic measure by
the government: The Goods and Services Tax (GST) was
implemented from July, 2017 as the nation moved to ‘one
nation-one tax’. The reform measure has helped India move
into the Top 100 Club in World Bank’s ‘Global Ease of Doing
Business’ rankings.
The Indian economy continued to grow strongly, as the
economy recovered in the 2nd half post stabilisation of the
GST regime. Gross Domestic Product growth rate in
FY 2017-18 was 6.7%, supported by consumption growth and
government spending. With improving investments, there
are signs that a recovery is underway. Industrial activity
has rebounded with strong industrial production growth,
led by a rise in consumption, manufacturing and electricity
generation. Strong vehicle sales growth and improvement
in road freight transport following stabilisation of GST
are further positive signs for continuing demand growth.
Services indicators also show positive trends with services
credit, services exports and imports clocking double
digit growth.
India remained the world’s 3rd largest oil consuming economy
behind USA and China after overtaking Japan last year. Its
annual demand for oil climbed by 0.12 mb/d to
4.68 mb/d.
For FY 2017-18, India’s oil demand grew at 5.3% y-o-y with
strong consumption-led demand growth in gasoline (+10.1%)
and jet fuel (+8.9%). The growth was led by robust passenger
vehicle sales growth, two-wheelers sales growth and growth
in domestic airline passenger traffic. Domestic diesel
demand rose at 6.6% with acceleration in industrial activity.
Polymer demand growth in India continues to be driven
by healthy economic indicators, infrastructure boost and
higher disposable income. During the year, polyester chain
margins recovered with slower capacity growth relative to
demand growth. This supported healthy operating rates and
favourable margins for integrated players.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 43
LLDPE facility at Refinery Off - Gas Cracker (ROGC) complex, Jamnagar
Introduction of GST and emphasis on cash-less transactions
have provided a fillip to organised retail sector in India.
Organised retail has a 9% share in the overall Indian Retailing
market, providing significant growth opportunities to the
formal sector.
FY 2017-18 also marked the commencement of commercial
operations of Jio. Within a short period, Jio has transformed
the digital landscape in India, providing high-speed internet
access to 186.6 million subscribers as on 31st March 2018.
Commissioning of the world’s
largest Refinery Off-Gas
Cracker (ROGC) complex
India’s digital services market is continuing its exponential
growth trajectory with Jio expanding its coverage and
further deepening in existing areas to achieve 99%
population coverage during FY 2018-19. With over 186.6
million subscribers – Jio has ushered in an era of data
abundance in the nation. The digital infrastructure created
by Jio will play a significant role in
accelerating India’s economic growth in
the coming years.
Highlights and Key Events
FY 2017-18 marked the culmination
of RIL’s largest ever petrochemical
expansion project, with the
commissioning of the Refinery Off
Gas Cracker (ROGC) and related
downstream units. During the year, the final phase of the
Paraxylene (PX) expansion was completed and ethane
cracking at Dahej and Hazira have been stabilised. The
projects achieved on-spec production at design capacities
in record time, a testimony to the operational excellence
of RIL’s team. The robust economics of these projects
reflects in sharp increase in petrochemical business earnings
during the year. New volumes in polyester intermediates
and polymer stream, elevated polymer margins and
improving polyester chain margins were key drivers for
record petrochemical business earnings. Refining business
environment remained constructive with strong oil demand
growth outpacing supplies, pushing global utilisation levels
higher. Refining margins remained strong during the year
supported by healthy light distillate cracks and recovery in
middle distillate cracks.
Reliance Retail business also saw significant traction with
robust revenue growth (104.9% y-o-y) and EBIT growth
(163.3% y-o-y). Reliance Retail added 221 stores and 3,736
Jio Points stores during the year and now operates 17.7
million sq. ft. of retail space, the largest footprint of any
organised retailer in India.
Refining & Marketing – Third
successive year of double-digit
Refining Margins
The Refining & Marketing business
reported a record EBIT of `25,869
crore during FY 2017-18 reflects
RIL’s continuing focus on operational
efficiencies and proactive risk
management. Though global oil prices
increased during the year, oil demand
continued to be robust in CY 2017 at 1.6 mb/d. With limited
refining capacity additions, global refinery utilisation rates
remained high at 82.8%, supporting refinery margins.
Crude and product prices increased during the year, with
markets re-balancing amid declining inventories. Production
restraint by OPEC and some Non-OPEC countries helped
restrict supply growth in the firm demand environment,
leading to a drawdown in crude and product inventory
levels in the OECD countries. Firm refining margins were
underpinned by a recovery in middle distillates product
cracks with firm diesel demand on the back of recovering
industrial and mining activity.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 44
During the year, RIL processed 8 new grades of crude,
including grades from USA introduced for the first time.
Commissioning of the new petrochemical units at Jamnagar
(PX and ROGC) has increased the petrochemical intensity
index of the Jamnagar complex, leading to further value
addition to refinery streams.
Petrochemicals – 63.0% increase in earnings
Petrochemical business EBIT reached record levels of
`21,179 crore with incremental volumes from project start-
ups and supportive margin environment. During the year, the
final phase of the PX expansion was completed and ROGC &
related downstream units were commissioned. Also, ethane
cracking stabilised at Hazira and Dahej, leading to improved
yields. Project management and operational excellence was
demonstrated through the rapid ramp-up of new plants to
their design capacity, with on-spec production achieved in
record time.
FY 2017-18 marked the culmination of the largest
petrochemical expansion undertaken by RIL. Over the
course of the last three years, RIL has significantly enhanced
its capacities in key product lines and has improved its global
rankings in key products in the polyester and polymer chain.
Importantly, the new projects have materially improved RIL’s
cost positions in these products with appropriate choice of
feedstock, technology and scale. With the completion of
these projects, RIL’s petrochemical portfolio has
unmatched feedstock integration and flexibility to achieve
sustainable earnings.
Oil and Gas Exploration and Production
Domestic Oil & Gas
RIL commenced commercial production from its Coal Bed
Methane (CBM) block in March 2017. During the course of
the year, production was ramped up to 1 MMSCMD level with
more than 200 wells having been put to production. Gas from
the CBM field was sold through a government mandated
competitive bidding process carried out by CRISIL.
RIL, along with partner BP, have embarked on the next wave
of projects to develop existing discoveries in the KG D6
block. For R-cluster development, all major contracts for
supply of long lead items, installation works and drilling rigs
have been awarded. Field development plans for MJ gas
and condensate field and the Satellite Cluster have been
approved by the Management Committee of the block.
The development and production from the three planned
projects (R-cluster, Satellite Cluster and MJ fields) is
expected to bring on-stream 30-35 MMSCMD of gas in
phases over 2020-22.
International: Shale Gas
US crude and natural gas prices remained volatile during the
course of the year, with a strong uptick in prices towards
the end of the year. Natural gas prices were firm during the
year with increased offtake from LNG and Mexican exports.
Business conditions, however, remained challenging and
RIL continued with its strategy of measured approach to
development, progressing only those projects meeting the
Group’s investment threshold.
During the year, Reliance divested its holdings in the
Marcellus shale JV which were operated by Carrizo Oil & Gas.
Reliance continues to focus on value maximisation in the
remaining two JVs with focus on improvement in well design
and execution efficiency.
Retail Business – Leadership across key consumption
baskets
Reliance Retail achieved revenues of over US$10 billion
during FY 2017-18, becoming the first Indian retailer to cross
this milestone. Reliance Retail Revenues grew 104.9% y-o-y
to `69,198 crore, sustaining a revenue CAGR of 45% over the
last 5 years. Reliance Retail delivered EBITDA of `2,529 crore,
up 114.5% on a y-o-y basis, with profitable growth across all
verticals. Reliance Retail has established a large presence
across all consumption baskets, and is a leading player in
food, consumer electronics and fashion retailing. During the
year, Reliance Retail further expanded its retail footprint and
now operates 7,573 stores in over 4,400 cities.
Digital Services – World’s largest and fastest growing
mobile data network
Jio continued to set new benchmarks as it consolidated its
position as the world’s largest and fastest growing mobile
data network. Jio has India’s largest wireless data subscriber
base of 186.6 million subscribers. Across all key performance
parameters, Jio is resetting industry benchmarks with
largest high quality video consumption, highest voice
consumption per subscriber and the best network quality
with the lowest call drops and fastest download speeds.
Jio is playing a transformational role in creating the digital
eco-system for India, with the growing popularity of its
digital services and applications. MyJio became the fastest
Indian app to cross 150 million downloads and is becoming a
valuable customer engagement app. JioTV was awarded
the “Best Mobile Video Content” app in the Glomo Awards
2018, while JioCinema became India’s no.1 Video-On-
Demand App.
Digital Services business recorded revenues of `23,916
crore, with year-end subscribers’ base at 186.6 million and
Segment EBIT was at `3,174 crore for the year, with EBIT
margin of 13.3%. This is strong financial performance within
very first year of commercial operations demonstrating
strong fundamental and operating leverage of the business.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 45
Media – Strengthening content and delivery
platforms
High quality media content is a key differentiator in the digital
and broadcast ecosystems. Reliance is committed to provide
Indian consumers world-class media for entertainment,
news and information across platforms. During the year,
Reliance continued to strengthen original and exclusive
content for its digital platforms with strategic tie-ups and
investments in film, media production and music platforms.
Reliance’s flagship media Company Network18 consolidated
its operations and continued to raise its standing in the
Media and Entertainment sector.
Network18 subsidiary TV18 took operational control and
raised its stake to 51% in entertainment JV Viacom18
(in March ’18). This will drive value-addition and synergies
across the multi-platform group comprising broadcast,
digital, filmed and experiential entertainment and
media businesses.
Corporate Stewardship:
Reliance believes in fostering an equitable economic growth
and ensuring a sustainable and inclusive growth for all.
During the year, Reliance contributed `771 crore towards
various community development initiatives focused in the
areas of rural transformation, health, education, sports for
development, disaster response, arts, culture and heritage
and urban renewal. Reliance Foundation has transformed
lives of 20 million Indians across 13,500+ villages and 100+
urban locations. During FY 2017-18, Reliance contributed
`86,942 crore to the national exchequer. Reliance continues
to invest in Skill India, Make in India & Digital India. RIL has
been at the forefront of adopting an integrated thinking in
the Company’s management approach. RIL’s integrated
approach to value creation culminates into its six capital
approach which depicts its commitment towards a
sustainable future. Reliance’s businesses are future-ready
and enable the fourth industrial revolution, an amalgamation
of physical, digital and biological innovations.
Digital Platforms
During the year, Reliance has initiated platform driven
organisation process to tap significant potential for its
businesses to improve efficiency, informed & agile decision
making process.
Petcoke Gasification
Integrated Annual Report 2017–18Management’s Discussion and Analysis 46
Financial Performance and Review
Alok Agarwal
Srikanth Venkatachari
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 – underpinned by solid segment earnings
growth, led by volume and margin expansion. Reliance has generated record cash profit of US$8.6 billion (`56,034 crore)
for the year. Additionally, Reliance became the first Indian Company to record PBDIT of US$11.4 billion (`74,184 crore)
with strong contribution from Energy and Materials businesses and the Consumer-facing businesses.
The robust performance for the year also reflects strong underlying fundamentals of Reliance’s refining and
petrochemicals business. The Company’s hydrocarbon and consumer business demonstrated completion of its largest
ever capital expenditure cycle with all major project commissioning during the year, including cracker, paraxylene
facilities, ethane project and wireless services. The structural strength in energy & materials business environment
augurs well for Reliance’s new capacities that have come on stream this year.
`74,184 crore
Record PBDIT
Financial Information – Consolidated and Standalone
Consolidated
Particulars
Value of Sales & Services (Revenue)
PBDIT
Cash Profit
Segment EBIT
Net Profit
Cash & Marketable Securities
Tangible and Intangible Assets
(Ex. Goodwill)
Gross Debt
FY 2017-18
` in crore US$ in billion
66.1
4,30,731
11.4
74,184
8.6
56,034
8.0
52,386
5.5
36,075
12.0
78,063
89.8
5,85,094
FY 2016-17
` in crore
3,30,180
55,529
42,800
38,168
29,901
77,226
5,18,471
Standalone
FY 2017-18
` in crore US$ in billion
48.4
3,15,357
9.2
59,961
7.1
46,352
6.9
45,121
5.2
33,612
10.4
67,566
46.1
3,00,447
FY 2016-17
` in crore
2,65,041
51,965
40,909
38,340
31,425
69,337
2,87,319
2,18,763
33.6
1,96,599
1,16,881
17.9
1,07,446
Reliance achieved consolidated revenue of `4,30,731 crore
(US$66.1 billion), an increase of 30.5%, as compared to
`3,30,180 crore in the previous year. Increase in revenue
was primarily on account of higher volumes with start-up of
petrochemicals projects and uptrend in prices of products
in the refining and petrochemical businesses. Product
prices were led by 18% y-o-y increase in average Brent oil
price to US$57.5/bbl for the year. Reliance’s consolidated
revenue was also boosted by robust growth in Retail and
Digital Services business. Reliance Retail recorded a 104.9%
increase in revenue to `69,198 crore. Digital Services
business recorded revenue of `23,916 crore in its very first
year of commercial operations.
Robust refining and petrochemicals margin environment,
volume growth in petrochemicals and rapidly increasing
contribution from consumer businesses led to significant
rise in operating profits for the year. Operating profit before
other income and depreciation increased by 38.9% on a
y-o-y basis to `64,176 crore (US$9.8 billion) from `46,194
crore in the previous year. Profit after tax was higher by
20.6% at `36,075 crore (US$5.5 billion) as against `29,901
crore in the previous year. Higher interest and depreciation
charges with the commissioning of projects across
businesses resulted in relatively lower growth in
profit after tax.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 47
• Revenue from the Refining and Marketing segment
increased by 22.0% y-o-y to `3,06,095 crore (US$47.0 billion)
including inter segments transfers, primarily on account of
higher crude prices during the year. Segment EBIT increased
by 3.2% to a record level of `25,869 crore (US$4.0 billion),
supported by higher Gross Refining Margins (GRM). GRM
for the year was at a 9-year high of US$11.6/bbl as against
US$11.0/bbl in the previous year. RIL’s GRM outperformed
Singapore complex margins by US$4.4/bbl. As at the end of
the year, RIL operated 1,313 petroleum retail outlets in the
country. RIL’s superior retail proposition reflects in the higher
offtake, with a 42% increase in MS and HSD volumes.
• Revenue from the Petrochemicals segment increased by
35.5% y-o-y to `1,25,299 crore (US$19.2 billion), including
inter segments transfers, primarily due to higher volumes
from new Paraxylene, ROGC and its downstream units (PE
and MEG). Petrochemicals segment EBIT increased sharply
by 63.0% to its highest ever level of `21,179 crore (US$3.2
billion). Earnings was supported by favourable product deltas
across integrated polyester chain, PP and PVC along with
volume growth. EBIT margin was higher by nearly 300bps to
16.9%, reflecting RIL’s strengthened cost positions across
product chains and unmatched feedstock flexibility.
• Revenue from the Oil and Gas segment increased by
0.3% y-o-y to `5,204 crore (US$0.8 billion), including inter
segments transfers. The marginal rise in revenue is due to
ramp-up in CBM operations and better price realisations
in US shale operations. Volumes from conventional fields
and US shale were lower on account of natural decline and
slowdown in development activity. Segment EBIT was at
`(1,536) crore as against `(1,584) crore in the previous year.
For the year, domestic production (RIL share) was at 78.9
BCFe, down 16.9% y-o-y and in US Shale (RIL share) business
was 139.7 BCFe, down 19.7% y-o-y basis.
• Revenue from the Organised Retail business grew by
on account of commencement of Digital Services business,
Petrochemical projects at Jamnagar and higher loan balances.
Depreciation (including depletion and amortisation)
was higher by 43.4% to `16,706 crore (US$2.6 billion) as
compared to `11,646 crore in the previous year, primarily
on account commencement of wireless service business
in Reliance Jio. Higher depreciation also reflected the
capitalisation of new projects in the petrochemicals
business and reduction in reserve estimates in
domestic Exploration & Production business.
Profit after tax was higher by 20.6% at `36,075 crore (US$5.5
billion) as against `29,901 crore in the previous year.
Basic earnings per share (EPS) for the year ended 31st March
2018 was at `60.9* as against `101.3 in previous year.
The Board of Directors of the Company has recommended
dividend of `6/- per fully paid up equity share of `10/-
each, aggregating `4,281 crore (US$ 657 million), including
dividend distribution tax.
Reliance’s fixed assets (excluding goodwill) stood at
`5,85,094 crore (US$89.8 billion) as on 31st March, 2018.
This includes fixed assets of `2,84,647 crore of its
subsidiaries mainly in Reliance Jio, Reliance Holding USA and
Reliance Retail.
Capital expenditure for the year ended 31st March, 2018
was `79,253 crore (US$12.2 billion), including exchange rate
difference. Capital expenditure was principally on account of
the Digital Services business, projects in the petrochemicals
and refining business and in the Organised Retail business.
104.9% y-o-y to `69,198 crore from `33,765 crore in the
previous year. Reliance Retail has become the first retailer
in India to cross the US$10 billion revenue milestone. Retail
business PBDIT grew sharply by 114.5% to `2,529 crore for
the year. Retail segment EBIT increased by 163.3% to `2,064
for the year. EBIT margins for segment expanded by 70 bps
to 3.0% during the year.
Reliance’s gross debt was at `2,18,763 crore (US$33.6
billion). This includes standalone gross debt of `1,16,881
crore and balance in key subsidiaries, including Reliance
Jio (`58,392 crore), Reliance Holding USA (`30,927 crore),
Reliance Retail Group (`3,448 crore), Recron Malaysia (`1,023
crore), Reliance Gas Pipelines Limited (`1,309 crore) and
Independent Media Trust Group (`2,203 crore).
• In its very first year of commercial operations, Digital
Services business recorded revenues of `23,916 crore, with
year-end subscribers base at 186.6 million. Reliance Jio
reported strong financial performance for the year despite
competitive pressures. Segment EBIT was at `3,174 crore
for the year, with EBIT margin of 13.3%.
Other income was lower at `8,862 crore (US$1.4 billion)
as against `9,443 crore in the previous year, primarily on
account of adverse yield movement.
Finance cost was at `8,052 crore (US$1.2 billion) as against
`3,849 crore in the previous year. The increase was primarily
Cash and marketable securities were at `78,063 crore
(US$12.0 billion) resulting in net debt at `1,40,700 crore
(US$21.6 billion).
RIL’s standalone revenue from operations for FY 2017-18
was `3,15,357 crore (US$48.4 billion), an increase of 19.0%
on y-o-y basis. Standalone profit after tax was at `33,612
crore (US$5.2 billion) an increase of 7.0 % against `31,425
crore in the previous year. Basic EPS on standalone basis for
the year was `53.1* as against `96.9 in the previous year.
* Pursuant to issue of bonus shares during the year in the ratio of 1:1
Integrated Annual Report 2017–18Management’s Discussion and Analysis 48
Refining and Marketing (R&M)
Refining segment recorded strong operational performance led by a
9-year high GRM of US$11.6/bbl. EBIT for the year was at a record level
of `25,869 crore. RIL outperformed the Singapore refining benchmark by
US$4.4/bbl, significantly above its 5-year average outperformance. This
reflects the robust operational performance, superior configuration and
consistent high utilisation of refineries at Jamnagar complex.
`25,869 crore
Refining segment recorded its highest
ever EBIT, led by 9 year high GRM of
US$11.6/bbl.
Strategic advantages and competitive strengths
Refinery
Configuration
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 Nelson
Complexity Index, (a metric
for quantifying and ranking
the complexity of refineries)
of 12.7. The complexity level
of Jamnagar site is expected
to improve significantly
by several notches with
the commissioning J3
projects. The refinery’s
complexity provides it the
ability to take advantage of
opportunities arising out of
market volatility to procure
and process different
qualities of crude while
meeting stringent product
specifications.
Additionally, RIL has
significant flexibility to
alter the product mix, to
capture higher netbacks with
changing product supply-
demand dynamics.
The commissioning of ROGC
and downstream units has
provided further integration
with petrochemical, enabling
higher value addition.
Crude Selection
and Sourcing
Operational excellence with
continuous innovation
RIL’s refinery configuration
and logistics infrastructure
availability allows crude
portfolio optimisation.
With inherent design
flexibility, RIL optimises the
crude diet through a mix
of term and spot supply
contacts, sourcing the
most advantageous crude
globally. Eight new crude
grades were processed in
FY 2017-18, including new
North American crudes.
RIL continuously focuses on
debottlenecking, capacity
enhancement, energy
conservation, and product
quality improvement to
enhance its competitive
strengths. In FY 2017-18, these
efforts included:
• Implementation of energy
conservation initiatives to
minimise fuel consumption
• Upgradation of logistics
facility to export high value
Tertiary amyl Methylene
Ether (TAME)
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 49
Hital R. Meswani C Borar
Srinivas
Tuttagunta
P. Raghavendran
Harish Mehta
Surinder Saini
Responsiveness to changing market dynamics continues to provide RIL an edge in crude sourcing and product
placement. RIL has continued expansion of its domestic fuel retailing outlets while maintaining industry leading
throughput per outlet. At the end of the financial year, RIL had 1,313 operational outlets.
Deepening integration post commissioning of paraxylene and ROGC facilities further improved petrochemicals
intensity index. Petcoke Gasification project, one of the largest and most complex projects in the world, will
transform Jamnagar refinery into a unique “bottom-less” refinery by converting refinery residue (petcoke) into
syngas. Gasification start-up is currently in progress with DTA Gasification under stabilisation and optimisation,
while SEZ Gasification is under commissioning.
Logistics and
supply-chain
Market access and
responsiveness
Petrochemical
Intensity
RIL continued to expand its global
market reach by finding new sinks for
gasoline in Latin America and Australia
and gasoil to Brazil. 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 ROGC and
final phase of Paraxylene complex
expansion, the petrochemical intensity
of the Jamnagar refinery has increased,
improving value addition to refinery
streams. With ROGC start-up, ethane
and ethylene from refinery fuel gas is
further value added to MEG, LDPE
and LLDPE.
Jamnagar has a unique locational
advantage with proximity to key
sources of crude supply and large
product markets. 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 for cost-efficient product
evacuation. Marine facility comprising
all-weather port and dedicated pipeline
infrastructure enables berthing of wide
range of ships from Very Large Crude
Carriers (VLCC) to small chemical
carriers. It also supports coastal
movement of products to the
domestic market. RIL optimises freight
costs through opportunistic use of
time charters.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 50
Market Environment
Robust oil demand growth enabling market
re-balancing and supporting prices
Global oil demand growth at 1.6 mb/d in CY 2017 remained
strong as compared to the 10-year average growth of 1.1
mb/d, even in a rising crude oil price environment. Though
global oil demand was dominated by Non-OECD countries
with demand growing at 1.1 mb/d, demand growth was also
witnessed in relatively mature markets of OECD countries
at 0.5 mb/d. Oil demand growth was distributed across
petroleum products, except for fuel oil, which witnessed
subdued demand. Demand growth for diesel got strong
support from broad based economic growth across
the globe.
During CY 2017, emerging economies in Asia accounted
for close to two-third of the global oil demand growth.
Chinese oil demand growth more than doubled to 0.6 mb/d
in CY 2017 (0.3 mb/d in CY 2016). In China, gasoline demand
growth was supported despite a slow down in the growth of
conventional vehicle sales and rising penetration of hybrids
and electric vehicles. Diesel demand rebounded in 2017 after
a contraction in 2016 on the back of economic recovery as
well as improving mining activity.
During FY 2017-18, oil demand was also firm in India led by
gasoline, gasoil, jet fuel and LPG.
Asian Cracks
US$/bbl
Naphtha
Gasoline
Jet
Gasoil
Fuel Oil
Q1 Q2 Q3 Q4
3.0 -0.5
-1.3 -0.2
14.2 16.1 14.4 13.7
10.8 13.2 13.3 16.1
11.4 13.9 13.0 14.8
-2.9 -2.5 -4.3 -6.3
FY
2017-18
0.3
14.6
13.3
13.3
-4.0
FY
2016-17
0.1
13.9
11.5
11.3
-5.4
Non-OPEC gains market share
Global oil supply grew by 0.4 mb/d in CY 2017. OPEC supply
contracted by 0.4 mb/d as a result of adherence to the supply
restraint deal between OPEC and non-OPEC producers
as well as sharp production declines in Venezuela. Saudi
Arabia shouldered a majority of the agreed cuts reducing its
production by 0.5 mb/d. This was partly offset by increased
production from Libya, which was exempted from the OPEC
production cut agreement.
Non-OPEC supplies rose by 0.7 mb/d in CY 2017 after falling
by 0.7 mb/d y-o-y during CY 2016. Supply from the US and
Canada grew by 1 mb/d in CY 2017 as crude price recovered
and US shale oil production growth returned after posting a
decline in CY 2016.
Receding Inventory Lift up Prices
Brent crude oil prices averaged US$57.5/bbl in FY 2017-18,
higher by US$8.9/bbl from FY 2016-17. Adherence to the
production restraint by OPEC and some non-OPEC members
through FY 2017-18 helped restrict oil supply growth to less
than the oil demand growth for the second consecutive year.
This led to the drawdown of crude and product inventories in
OECD countries, with stocks in these countries receding to
their lowest levels in last two years.
Oil Prices
80
70
60
50
40
30
20
6
1
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a
J
6
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8
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r
a
M
Refinery under natural light
Brent
WTI
Dubai
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice Benchmark Refining Margins Gained on Stronger
Middle Distillate Crack
Limited refining capacity additions in CY 2017 and firm oil
demand growth led to refineries running at high utilisation
levels globally. Global refinery utilisation remained high at
82.8% in CY 2017 as compared to a 5-year average of 81.3%.
Refining margins were also supported by unplanned refinery
outages in Americas and strength in transportation
fuel cracks.
Light distillates
Light distillate cracks showed mild improvement in FY 2017-
18 supported by steady demand growth across regions.
Rising crude prices seemed to have an impact on demand
in the US, the largest gasoline market in the world, where
demand was largely flat y-o-y after strong growth in the past
4 years. Growth in China and India remained stable.
Higher import requirement from Latin American nations
(Venezuela and Mexico) as a result of disruptions at domestic
refineries as well as supply outages in US Gulf coast due to
hurricane Harvey supported cracks.
Car sales (conventional) growth in China
slowed down in CY 2017 as a result of
Government’s push to promote new-energy
vehicles (hybrid and electric vehicles) to curb
pollution. Gasoline demand however grew by
3% y-o-y despite these measures.
Demand for naphtha from petrochemical
sector remained firm due to stable end
product demand and favourable naphtha
cracking economics with narrower spread between
Naphtha and LPG.
Middle distillates
Middle distillate cracks strengthened in FY 2017-18 over the
previous year on the back of broad based global economic
recovery supporting strong demand growth. Middle distillate
demand growth accounted for close to half of the oil product
demand growth globally. This was supported by recovery
in developed economies of US and Europe along with
structurally growing demand in emerging economies of Asia.
Gasoil demand in China grew by 2% in CY 2017 recovering
from a 4% contraction in the previous year. Demand growth
in CY 2017 was led by better economic growth, improving
industrial demand and mining activity. India gasoil demand in
FY 2017-18 also recovered strongly, growing by 6.6% y-o-y
as compared to 3% growth in the previous year.
Jet fuel demand growth remained strong aided by robust
8% growth in global international passenger traffic and 7%
growth in domestic air travel. Indian domestic passenger
traffic remained robust, growing by 17.5% y-o-y in CY 2017.
51
Fuel oil
Fuel oil demand declined in CY 2017 after growing for the
first time in many years in CY 2016. Fuel oil demand from the
bunker fuel segment remained firm. However, demand from
the power sector was impacted by natural gas substitution
in the Middle East/West Asia and North Africa during the
second half of the year. Lower Latin American refineries
utilisation and simple refineries upgradation, especially in
Russia, supported margins. Fuel oil cracks also strengthened
owing to OPEC oil output cut which is targeted mainly
towards medium and heavy crude grades.
Global refining environment supportive
Global oil demand is expected to grow by 1.4 mb/d in
CY 2018 supported by improved global economic outlook
and strong petrochemical feedstock demand. Higher crude
oil production from North America as well as spare capacity
available from OPEC/non-OPEC countries participating
in the production curtailment agreement is expected to
help meet demand growth and limit sharp increase in oil
price. Gasoil demand growth is expected to stay firm on
better global economic outlook. Gasoline demand growth is
expected to be supported by growing demand
in emerging markets aided by rising incomes.
Global refinery utilisation is expected to stay
high, supporting product cracks in CY 2018
with oil demand growth expected to outpace
refinery capacity addition.
RIL maintained premium over regional
benchmarks
RIL achieved double-digit GRM for the third year in a row.
At US$11.6/bbl, refining margin was at a 9 year high. RIL
maintained a significant premium of US$4.4/bbl over the
benchmark Singapore Complex margins. RIL achieved
superior refining margins due to strong product cracks,
robust risk management and higher secondary unit
throughputs. Better performance against benchmarks
was underpinned by RIL’s ability to optimise product yields,
expand product reach based on market movement and
process a variety of crudes, including crudes from
North America.
RIL processed 8 new crude grades this year, including new
grades from North America introduced. During the year,
65 different crude grades were processed. Over the years,
RIL has demonstrated its ability to process challenging
crude grades with sulphur content of over 5%, Total Acid
Number (TAN) of 5 (mg KOH/g), viscosity of ~5000 cst and an
American Petroleum Institute (API) gravity as low as 100.
RIL fully utilised the flexibility available in its refining system
to procure competitive feedstock and optimise product
yields to improve margins.
9-year high GRM
of 11.6/bbl
Integrated Annual Report 2017–18Management’s Discussion and Analysis 52
Refining Margins vis-à-vis global benchmarks
Regional Margins
(US$/bbl)
Singapore Complex
RIL GRM
Rotterdam (Brent)
USGC (WTI)
FY 2017-18 FY 2016-17 FY 2015-16
7.2
11.6
6.3
12.8
5.8
11.0
5.3
8.7
7.5
10.8
6.3
11.8
Financial and operational performance
Financial Performance*
FY 2017-18
(` in crore)
3,06,095
25,869
8.5%
FY 2017-18
(US$ in billion)
47.0
4.0
FY 2016-17
(` in crore)
2,50,833
25,056
10.0%
%
Change
22.0%
3.2%
Revenue
EBIT
EBIT%
*consolidated
high base, there has been growth in diesel consumption,
which has allayed some concerns pertaining to impact of
growing electrification.
Growth in demand was led by retail outlet sales, in line with
previous years. The total number of retail outlets in India has
increased to over 62,000, as both state owned oil marketing
companies and private players continue to expand their
network presence.
Higher government spend on infrastructure development is
expected due to the ambitious Bharatmala and Sagarmala
Pariyojana. Former plans to join 550 district headquarters
(with minimum 4-lane highway by developing 50 corridors)
and aims to shift 80% freight traffic to national highways.
Latter entails setting up of 6+ greenfield mega ports,
upgrading existing ports, developing 14+ Coastal Economic
FY 2017-18 revenue from the R&M segment
increased by 22% y-o-y to `3,06,095 crore
(US$47.0 billion), reflecting 18.2% higher
average oil prices during the year. Refining
EBIT increased by 3.2% y-o-y to a record of
`25,869 crore (including exceptional item
of `1,087 crore). Crude throughput for the
year was at 69.8 MMT.
1,313 fuel outlets
operational countrywide
Zones and 29+ Coastal Economic Units
with rail, road and airport linkages to
these water ports. These projects
will create new avenues for network
expansion and continue to support the
demand growth of petroleum products in
India.
Refinery Sales
(FY 2017-18) (In MMT)
(FY 2016-17) (In MMT)
14.5
15.3
42.2
14.6
41.7
10.9
Export
Captive
Domestic
Domestic Marketing
Market Environment
In FY 2017-18, petroleum product consumption in India
increased to 205 MMT, a growth of 5.3%. The industry
continues to grow across product categories with increased
accessibility due to better network penetration and growing
disposable income.
The strong oil demand growth was supported by
transportation fuels. Gasoline demand grew by 10.1% to 26
MMT and Diesel demand grew by 6.6% to 81 MMT. Despite
Petroleum Retail
With a countrywide operational network of 1,313 fuel
outlets, RIL covers the key highways in the country.
Customer count enrolled in RIL’s industry leading fleet
programme, Trans-Connect, grew by 31% during FY 2017-18.
Supported by the network presence and the growing fleet
customer count, RIL outlets registered an outstanding pump
throughput of double the industry average during
the year.
RIL registered y-o-y growth of 42% in diesel and gasoline
retail sales volume. Share of fleet (Trans-Connect) sales in
the retail volumes is significantly higher than competitors.
RIL’s emphasis on quality and quantity of fuels, superior
service and value added offerings at the retail outlets have
resulted in industry leading outlet throughput.
a) 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 from the feeding terminals
through the entire length of the primary and secondary
supply chain to the Retail Outlets. This was validated
with ‘nil’ adverse findings in outlets, randomly checked
by a special task force.
Through real-time network at 100% outlets, RIL was the
first Oil Marketing Company (OMC) to seamlessly rollout
the dynamic pricing regime. The combination of latest
technology, well-defined processes, value propositions
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice
53
with right channel partners and personnel ensures
consistent delivery of superior customer experience.
RIL has partnered with key aggregators in the Banking
and NBFC segment to build customised operating
models for large fleet customers. Leveraging the unique
synergy of Retail and Digital Services businesses, RIL is
developing unique unmatchable offerings for customers.
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.
Adopting best-in-class practices and technology, RIL will
continue working at redefining the fuelling experience in
the country, and to strengthen the enduring relationship
with millions of consumers.
b) Digitisation strategy
RIL Retail Outlets have upgraded their payment
ecosystem to seamlessly accept multiple modes of
payment (Aadhar based, Credit Card, NFC and UPI
Based). The retail network offers next generation
dynamic pricing solutions to create unique and
convenient options for customers.
By introducing mobile based applications, RIL has
bolstered its fleet management offerings. The
customers are empowered with the convenience of
controlling and monitoring truck fleet on the go. The
proposition has also been integrated with Jio Payment
Gateway providing customers the flexibility of 24X7
funds transfer for loading their fleet account.
With digitisation gaining traction, the fleet management
program is embarking on the Virtual Card feature,
by linking the card with owner/driver mobile number,
enabling quicker transactions.
HSD – Direct
Despite growing electrification in railways and industrial
segment, Bulk Diesel market share increased y-o-y by 2.1%
in line with FY 2016-17. During the year, RIL registered a y-o-y
volume growth of 48% despite difficult market conditions
and competition led margin pressure.
On account of superior technology and better service
standards, RIL has become one of the priority supplier for
the Indian Railways. Based on safety and audit reviews, Indian
Railways has awarded RIL multiple “Letter of Appreciation”
from across regions.
Increased sectoral focus in fisheries, infrastructure and Steel
& Coal Mines (SCM) and enhanced coverage in Eastern and
Gasification – Air Separation Unit
Southern markets augurs well for growth in RIL’s bulk
sales volumes.
Aviation Turbine Fuel (ATF)
With a y-o-y Revenue Passenger Kilometer (RPK), a measure
of passenger volumes, growth rate of 17.5% in 2017, India
continues to be the world’s fastest growing domestic
aviation market for the 3rd consecutive year. Demand for
aviation fuel grew at 8.9% y-o-y in FY 2017-18.
Boosted by the UDAN (Ude Desh ka Aam Naagrik) – Regional
Connectivity Scheme (RCS) to make flying affordable to the
masses, Government of India has added 80 new airports
in addition to the existing 75 scheduled airports across
the country over last two years. Growing traffic from this
network will sustain the robust growth in Indian aviation fuel
demand in the medium-term.
With network presence across 28 locations, RIL continues to
be a key player in the ATF business offering innovative
end-to-end solutions to its customers to bring in savings
in fuel costs apart from ensuring best in class service
standards. RIL has the highest market share at 25% of the
airports it operates in.
To strengthen network presence and offer more choices to
customers, RIL is constructing 3 new Aviation Fuel Stations
(AFS) and working on adding another 10 locations in the
near term.
Integrated Annual Report 2017–18Management’s Discussion and Analysis
54
Impacting customers with a difference
Title
Reinforcing Quality & Quantity assurance for the
customer
Engagement with customer
Organisation agility to respond swiftly
Truck Drivers
Airlines
Change in Law
Emission standards
Enhancing customer experience
Action
• Lower customer trust on account of
• 80-85% of highway sales are
• Giving End-to-end
malpractices reported in retail outlets of most
of the competitors
through drivers
• RIL launching unified
• Addressed by launching communication
campaign (on-ground, online & on-air) as ‘Desh
Ka Sacha Pump’
• Leveraged being the Only OMC with 100%
manual intervention proof pump
loyalty programme across
India leveraging in-house
strengths of Jio, Retail,
A1 Plaza & others
infrastructure solutions to get
the product from overseas
terminal into aircraft
• Helping airlines rationalize their
largest cost component
• Usage of high sulphur furnace oil
• Latent demand for Diesel
• Addressing poor buying experience due to hassle
banned in Delhi
Exhaust Fluid (DEF) in India post
of switching through multiple mode of payments
• RIL responded with developing new
standard fuel (LSHS)
• Immediate launch ensured no loss to
customer operation
implementation of BS VI emission
norms for HCVs
• Incorporated unique integrated system to select
multiple payment options like credit card, debit
• RIL launched first non-OEM /
card, UPI, wallets and Bharat QR code.
non-PSU organised offering of DEF
in India
Outcome
Enhanced customer trust and reinforced belief in
our core value proposition of Q&Q delivery
Differentiated customer engagement leading to higher customer
retention reflected in increased sales
customer
Leveraging better responsiveness to change for delivering higher value to the
Improved customer experience and cemented RIL’s
pioneer position in technology
Capex and Growth Plan
Petcoke Gasification
The Jamnagar Pet-coke Gasification is one of largest ‘Clean
Fuel’ projects in the world. Pet-coke gasification upgrades
pet-coke, a low value refinery residue, into clean syngas, to
substitute high cost LNG imports. This will help in reducing
the impact of LNG price volatility. The pet-coke gasification
project shall transform Jamnagar into a unique “bottom-
less” refinery.
Syngas, from pet-coke gasification, shall be captively
consumed for Hydrogen (H2), co-gen fuel and heater fuel, at
the Jamnagar complex. H2 shall be used in hydro-processing
units to generate clean fuels of gasoline and diesel. Syngas,
as co-gen fuel, shall minimise the utility cost of the Jamnagar
complex, exploiting LNG and pet-coke price arbitrage.
Syngas as heater fuel, via Synthetic Natural Gas (SNG), shall
unlock the ethane and ethylene potential in the refinery
off-gas for maximum value addition to petrochemicals, via
the ROGC. Pet-coke gasification enables indirect “Pet-
coke-to-Ethylene”, for cost-competitive, “Make-in-India”
petrochemicals.
DTA Gasification has been started and currently, under
stabilization and optimization. SEZ Gasification is under
commissioning. The Jamnagar pet-coke gasification is
projected to have a major impact on the Jamnagar complex
operations in FY 2018-19.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice Impacting customers with a difference
customer
Title
Reinforcing Quality & Quantity assurance for the
Engagement with customer
Organisation agility to respond swiftly
Truck Drivers
Airlines
Change in Law
Emission standards
Enhancing customer experience
Action
• Lower customer trust on account of
• 80-85% of highway sales are
• Giving End-to-end
• Usage of high sulphur furnace oil
• Latent demand for Diesel
malpractices reported in retail outlets of most
through drivers
of the competitors
• RIL launching unified
• Addressed by launching communication
loyalty programme across
infrastructure solutions to get
the product from overseas
terminal into aircraft
campaign (on-ground, online & on-air) as ‘Desh
India leveraging in-house
• Helping airlines rationalize their
Ka Sacha Pump’
strengths of Jio, Retail,
largest cost component
• Leveraged being the Only OMC with 100%
manual intervention proof pump
A1 Plaza & others
banned in Delhi
• RIL responded with developing new
standard fuel (LSHS)
• Immediate launch ensured no loss to
customer operation
Exhaust Fluid (DEF) in India post
implementation of BS VI emission
norms for HCVs
• RIL launched first non-OEM /
non-PSU organised offering of DEF
in India
• Addressing poor buying experience due to hassle
of switching through multiple mode of payments
• Incorporated unique integrated system to select
multiple payment options like credit card, debit
card, UPI, wallets and Bharat QR code.
Outcome
Enhanced customer trust and reinforced belief in
Differentiated customer engagement leading to higher customer
our core value proposition of Q&Q delivery
retention reflected in increased sales
Leveraging better responsiveness to change for delivering higher value to the
customer
Improved customer experience and cemented RIL’s
pioneer position in technology
55
Business Stewardship
The RIL refineries are built keeping the principle of
responsible use of resources in mind. The Jamnagar
supersite is designed to achieve zero freshwater withdrawal
by implementing design efficiency. Secondly, RIL ensures
productive employment for villagers residing around the
refinery sites. Additionally, Reliance encourages employees
to volunteer for social causes.
For a more holistic view of CSR activities, please refer to the
Report on Corporate Social Responsibility.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 56
Petrochemicals
“RIL achieved record EBIT of `21,179 crore (up 63% y-o-y) and record
production of 30.8 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.
`21,179 crore
Petrochemical EBIT was at a
record level in FY 2017-18
Entered into Advanced
Materials & Composites
Working on incorporating nanomaterials
and composites
Strategic advantages and competitive strength
Global
Scale
Flexibility and
Integration
Leadership
• Global scale and capacities across
petrochemicals
• Integrated Refining and
petrochemicals portfolio
• Relentless focus on safety and
continuous improvement
• Manufacturing Locations: 10 in India
• Diversified feedstock slate with both
and 3 in Malaysia
naphtha and gas based crackers
• Ethane imports from North America
• Enhanced capabilities to crack propane
through VLECs
through ROGC project
• Technical leadership while maintaining
cost efficiencies and responsible and
disciplined operations
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 57
Nikhil R. Meswani Vipul Shah
Paramjit Singh
RIL’s Ethane import project is now being supported by a fully operational fleet of 6 Very Large Ethane Carriers
(VLEC) and crackers have started receiving shipments of Ethane from USA. The installation of Refinery Off Gas
Cracker (ROGC) and downstream projects at Jamnagar have been completed successfully during the year and
plants are operating at designed capacities. FY 2018-19 will reflect full impact of all new initiatives and organic
expansions are poised to drive sustainable earnings growth.
Continuing to augment its customer centricity and consumer orientation, Petrochemicals business has
progressed further on the expression of ‘Chemistry for Smiles’. Reliance has created R|Elan™ – a portfolio of
specialty fabrics, a perfect blend of ‘art’ and ‘smart’. Reliance is developing new lines of business in the Advanced
Materials & Composites and the capabilities to design and print a wide range of products using 3D Printing
technology.
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.”
Market Environment
FY 2017-18 witnessed strong recovery in global energy
prices, which was mirrored in petrochemical feedstock
and product prices. Healthy supply demand fundamentals
bolstered petrochemicals operating environment and
resulted in strong petrochemicals margins.
Olefins and Polymers
Global demand for ethylene increased by 5.5% y-o-y to 153
million tonne (MMT) in 2017. Global ethylene operating rates,
which are indicative of the margin environment, were flat
during 2017 but witnessed sustainable operation above the
five-year average of 88%. Operating rates are expected to
dip marginally in 2018 as new capacities in the US
come online.
Demand by end use
Demand : 153 MMT
Global Ethylene Supply/Demand 2017
Production by feedstock
Production : 153 MMT
Naphtha
Ethane
Propane
Butane
Others
41% Polyethylene
38% Ethylene Oxide
9% Ethylene Di-Chloride
5% Ethyl Benzene
7% Others
62%
15%
9%
6%
8%
Source: IHS Markit
US has started 2 MMTA new capacities in 2017 with a
few crackers delaying start-up due to hurricane Harvey.
Approximately 6 MMTA new capacities are expected to
start in 2018 followed by another 2 MMTA in 2019. Additional
capacities in US are based on low cost ethane from shale gas
production and are likely to impact ethylene price dynamics.
The high incremental demand of propylene from
downstream derivative capacities in Asia resulted in firm
Polypropylene (PP) prices during the year. The demand for
propylene increased by 4.2 MMT in 2017 from the previous
year, while supply gained approx. 4 MMT as compared to the
previous year. Addition of 6-6.5 MMTA new global capacities
in 2018 is expected to strengthen supply fundamentals in
the near-term. Major capacity additions in Northeast Asia
is from on-purpose units. With stringent environmental
restrictions in China and rising crude and feedstock prices
for Coal and Methanol to Olefins (CTO / MTO) and Propane
DeHydrogenation (PDH), the operations of such units are
expected to vary depending upon economic viability. On-
purpose propylene units are expected to remain marginal
contributors to fulfill regional demand.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 58
Making Life Better for Everyone by Harnessing the Power of Chemistry
Integration with refinery & within polymer and polyester chain
Integration with refinery and downstream petrochemical products
•
• Cracker integrated sites at Hazira, Dahej, Vadodara and Nagothane
• Feedstock optimisation through ROGC at Jamnagar, configured to crack refinery off-gases and even propane
• Under Ethane Project created a virtual pipeline for ethane from USA via 6 VLECs
Name
Olefin
Polymers
Polyesters
Fibre
Intermediates
Elastomers
Unsaturated open
chain hydrocarbon
Large molecule with
repeating subunits
Synthetic Fibres
Raw Material for polyester
and textile industries
Polymers with rubber like
elasticity
Description
RIL Portfolio
Ethylene,
Propylene,
Butadiene
Applications/
Associated
Industries
Industrial Chemicals
and Polymers
Capacities/ Global
Market Position
Feedstock for
petrochemical
products
Polyethylene(PE),
Polypropylene(PP),
Polyvinyl chloride
(PVC)
Construction,
Agriculture,
Automobile,
Consumer Goods
PE: 2.2MMTA/ 14th
PP: 2.9 MMTA/ 5th
PVC: 0.7MMTA/ 16th
Polyester Filament Yarns
(PFY), Polyester Staple
Fibres (PSF), Polyethylene
Terephthalate (PET)
Purified Terephthalic Acid
(PTA), Monoethylene Glycol
(MEG), Paraxylene (PX)
Poly-Butadiene Rubber
(PBR), Styrene Butadiene
Rubber (SBR)
Textile / Apparel industries
and Beverages
Polyester and textile
industries
Tyres and Automobile
PFY & PSF: 2.36 MMTA/ 2nd
PET: 1.13MMTA/ 7th
PTA: 4.9MMTA/ 4th
MEG: 1.5MMTA/ 6th
PX: 4.2MMTA/ 2nd
PBR: 120 KTA
SBR: 150 KTA
Key Growth Drivers Increasing Urbanisation & Changing Demographic Mix
| Higher Disposable Incomes
| Rapid Digitisation
Growth in per capita purchasing power
| Economic & Population Growth
| Burgeoning consumer class
New Growth Platforms
Long Term Growth Initiatives
• Digitisation and automation initiatives to transform supply chain and
deliver unparalleled customer experience at an unmatched cost basis
• Utilising robotics and AI in product handling, ware-housing and inventory
management
• Expanding portfolio to advanced materials and composites to diversify
RIL’s market offerings and make RIL future ready
Strategic Advantages
• Developed capabilities to design and print a wide range of products via
3D printing
• Block chain as a technology is currently being explored to enter into
Smart contracts with customers and vendors
Global Scale
• Global scale and capacities across
petrochemicals
Flexibility and Integration
•
Integrated Refining and petrochemicals portfolio
• Diversified feedstock slate with both naphtha and
Leadership
• Relentless focus on safety and continuous
improvement
• Manufacturing Locations: 10 in India
gas based crackers
and 3 in Malaysia
• Enhanced capabilities to crack propane through
• Ethane imports from North America
ROGC project
• Technical leadership while maintaining cost
efficiencies and responsible and disciplined
operations
through VLECs
New Product Development
Polymer
• Reliance’s geotextile products being used in
stabilisation and ground improvement of road in
different regions.
• Mulch film has been used for tomato cultivation in
Tamil Nadu, resulting in better growth of plants,
enhancing productivity
• Newly developed mulch for paddy can provide
better value addition for farmers
Polyester
Reliance has created R|Elan™ – a portfolio of specialty
fabrics, a perfect blend of ‘art’ and ‘smart’, that provide
several attributes such as enhanced performance,
aesthetics, enhanced breathability, dry feel, anti-odour
and have excellent drape, hand feel and are among most
eco-friendly fabrics
Elastomer
Reliance is the only company in the world
offering three different types of High Cis
Polybutadiene rubbers manufactured
using different Ziegler Natta catalysts:
Cobalt, Nickel, and Neodymium
Digitisation
RIL’s Sustainable Growth Approach
• Customer engagement and empowerment through e-CRM mobile
• One of the largest recycler of PET bottles in India - Converts more than
applications
2 billion post-consumer PET bottles per year
• Digitally signed invoices, ePOD (Electronic Proof of Delivery), auto service
certification for transporters, Credit and debit notes for customers and
Electronic DATA Interchange (EDI) with shipping lines
• Recron® GreenGold – Sustainable Fibres for cutting edge fashion
including home textiles at one of the lowest carbon foot-print globally
• RelWoodTM – RIL’s innovative wood substitute will help save forests;
• Applying Machine Learning solutions to fleet risk management for
offers durable, waterproof and sustainable alternative to natural wood
enhanced distribution safety
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 59
CY 2016 % growth
6.1%
4.3%
4.9%
5.5%
5.0%
66
92
41
146
101
Southeast Asia polymer margins
(US$/MT)
HDPE-Naphtha
PP-Propylene
PVC-EDC-Naphtha
Source: Platts and ICIS
FY 2017-18
668
300
583
FY 2016-17
721
252
531
Global Polyolefin and PVC Demand
(In MMT)
Polypropylene
Polyethylene
Poly Vinyl Chloride
Ethylene
Propylene
CY 2017
70
96
43
154
106
Source: IHS Markit
Global polymer market demand in 2017 was estimated at
209 MMT. PE accounted for 46%, PP 34% and PVC 20% of
the market. Total demand for polymers (PE, PP and PVC)
grew by 4.1% during 2017 driven by China and India. Last 5
year CAGR for global polymers demand has been 4.2%. The
global demand for these polymer products is estimated to
grow at the same pace over 2017-21 period. The recent ban
on import of recycled polymers imposed by the Chinese
Government is likely to increase the demand of virgin resin in
the region.
Price and Margin Environment
Polymer chain
Crude oil prices touched near 3-year high in January,
2018 with healthy demand growth projection, higher
compliance to OPEC led production cut and geo-political
concerns. Average naphtha prices in Asia gained, tracking
strengthening of crude prices and healthy demand. Asian
Naphtha prices were up by 19% y-o-y in FY 2017-18. Ethylene
prices in Asia strengthened by 6% y-o-y in FY 2017-18 due to
firm feedstock prices.
Jamnagar Manufacturing Division
Polymer margins continue to remain healthy during
FY 2017-18 on account of firm end product prices and
favourable supply demand fundamentals. On a y-o-y basis,
PE margin corrected by 7% due to strengthening in crude
and naphtha prices. PP margins were robust and improved
by 19% y-o-y with strong growth in demand. PVC continues
to deliver healthy margins, supported by soft EDC prices in
the strong caustic price environment. Tight carbide based
PVC supply due to environmental regulation in China further
strengthened PVC price fundamentals. Rising trade tensions
between USA and China could have an impact on global trade
flows and regional polymer prices.
Polyester and Fibre Intermediates
Polyester sector witnessed healthy recovery during the year
as compared to the challenging market environment in the
previous year. Integrated polyester chain margins were on
an uptrend through the year. Margins for the year improved
across the polyester and intermediates business, leading to a
5 year high chain margin across the polyester chain.
RIL benefitted from its integrated presence across the
polyester chain. While margins shifted within the elements
of the chain, with a notable uptick in PTA-PX margins,
integrated chain margins improved significantly during
the year. Capacity addition in upstream contributed to
improved integrated chain margins for Reliance with reduced
dependency on feedstock sourcing.
Polyester fibre and yarn markets were able to pass on
fluctuation in the upstream markets due to low inventory
levels and high operating rates. Polyester inventories in
China remained low after the first quarter which supported
the markets as fabric transactions in China remained healthy,
averaging higher volumes than the last two years. Global
polyester demand in 2017 increased by a robust 3 MMT,
a similar gain was last seen in 2011, as against a capacity
growth of 2.6 MMT.
China has in the past few years tightened environment
protection norms and enforced regulations to control
industrial pollution. In 2017, China restricted imports of solid
waste into China, whereby it targeted to completely ban
imports of solid waste (including PET) from 2018. Recycled
PET is majorly used for producing PSF (Polyester Staple
Fibre), which consequently witnessed a sharp price gain
towards 3Q FY 2017-18. PSF prices touched US$1255/MT,
highest since 2015, and consequently delta also firmed up.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 60
International cotton prices improved 8% y-o-y during FY
2017-18. Cotton to polyester price differential remained
healthy touching highest levels since 2011, favouring
polyester in blending. Global cotton acreage in 2017-18
(Aug-Jul) is expected to rise amidst increased consumption.
However, Indian cotton production is likely to be impacted
due to increasing pest issues.
Global PET prices for the year increased by 14% y-o-y to
US$1065/ MT with tight supplies due to curtailed output
and good demand. Global PET demand remained healthy
amidst firm beverage consumption from major developed
and emerging economies, CY 2017 PET capacity increased
by 1.2 MMT y-o-y against a demand growth of 0.8 MMT,
however, disruptions in few western capacities resulted in
tight markets.
Polyester and fibre intermediates margins
(US$/MT)
PX
PTA
MEG
POY
PSF
PET
FY 2017-18
346
131
538
282
201
167
Source: Platts, ICIS, CCF Group
FY 2016-17
383
100
428
248
143
141
During the year, Fibre intermediates prices were largely firm,
supported by higher crude oil prices and strong downstream
demand. On the supply side, delays in the startup of a
couple of PTA plants in China, plant outages and shutdowns
supported prices and margins. Both PTA and MEG markets
faced tight inventory levels for a major part of the year.
PTA margins improved significantly during the year,
encouraging restart of idled units and startup of new units
during the year. CY 2017 witnessed demand growth of 3 MMT
with capacity addition of 1.9 MMT.
MEG markets remained strong with a sharp rise of 23% y-o-y
in prices and 26% y-o-y in margins. Firm ethylene prices
supported positive trends in MEG markets, with prices
touching the highest levels in 4 years. During CY 2017, net
global capacity addition of 1 MMT was lower than demand
growth of 1.4 MMT. During the year, Reliance commissioned
its new MEG capacity in Jamnagar. The new capacity is
running at optimum throughput and the additional volume
has been absorbed in domestic and export markets.
PX market witnessed oversupply in the initial part of the
year with slower than anticipated offtake from downstream
PTA market. This was due to delay in start-ups and restarts
of idle PTA plants. Consequently, gains in upstream energy
markets overshadowed rise in PX prices, affecting the deltas
during the year. CY 2017 PX capacity increased by 3MMT and
witnessed demand growth of 1.9 MMT. However, PTA start-
ups pushed up demand for PX towards the end of the year,
supporting higher operating rates.
Elastomers
Global Natural Rubber production witnessed growth
of 7% y-o-y to 13.4 MMT in 2017, while demand growth
was 4% y-o-y to 13.1 MMT. The excess supply of natural
rubber weighed on price fundamentals during the year.
Environmental restriction in China led to reduction in
downstream operation of elastomers industry, which
resulted in shortage of carbon black and limited
tyre production.
Global capacity of butadiene continues to remain stable at 15
MMTA with average operating rate of around 77% in CY 2017.
The key application for butadiene is in the manufacturing
of PBR and SBR. With more light feed crackers coming up
-mainly in the US, the incremental availability of Butadiene
is expected to be limited. The global capacity of PBR is 4.8
MMTA in 2017 with average utilisation rate of 70%. The global
capacity of SBR is 7.1 MMTA in 2017 with average utilisation
rate of 67%.
PBR and SBR demand are directly linked to growth in
the automobile and tyre sector. During CY 2017, global
passenger car production grew at 2.3% and commercial
vehicles production grew strongly by 5.3% y-o-y. The
operating rates of both PBR and SBR are expected to
improve in near future amid growing demand and limited
capacity addition.
Domestic Scenario
Polymers
Indian polymer sector was impacted during the first half of
FY 2017-18 due to GST implementation. Demand revived
post stabilisation of the GST regime. For the full year, India’s
polymer market registered a healthy 7% growth y-o-y.
Demand growth was driven by higher economic activity,
rising disposable income levels, increased spending on
infrastructure and uptrend in the packaging and automobiles
sector. India is among the world’s fastest growing polymer
markets with a five-year CAGR (2012-17) of 9.1%. India is the
second largest demand hub for polymer in Asia after China,
accounting for 11% of the Asian consumption.
PP recorded 10% y-o-y demand growth supported by
healthy consumption across all segments, including raffia
packaging, non-woven, multifilament, automotive, hygiene
applications and appliances. PE demand was higher by
9% y-o-y owing to strong offtake from flexible packaging,
moulded products (e.g. portable toilets – driven by “Swachh
Bharat Abhiyan”) and paper/woven sacks lamination
packaging sector. PVC demand recovered towards the end of
the year and posted a growth of 2% in FY 2017-18.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 61
Financial and Operational Performance
Financial Performance
FY 2017-18
(` in crore)
1,25,299
21,179
16.9%
FY 2017-18
(US$in Billion)
19.2
3.2
FY 2016-17
(` in crore)
92,472
12,990
14.0%
%
Change
35.5
63.0
Revenue
EBIT
EBIT (%)
FY 2017-18 revenue from the Petrochemicals segment
increased sharply by 35.5% y-o-y to `1,25,299 crore
(US$19.2 billion). Revenue growth was primarily due
to higher volumes from new Paraxylene, ROGC and its
downstream units (PE and MEG), with the segment achieving
its highest ever production level of 30.8 MMT, up 24% y-o-y.
Petrochemicals segment EBIT increased sharply by 63.0%
to its highest ever level of ` 21,179 crore (US$ 3.2 billion).
Earnings was supported by favourable product deltas across
integrated polyester chain, PP, PVC along with the growth in
volumes. EBIT margin was higher by nearly 300bps to 16.9%,
reflecting RIL’s strengthened cost positions across product
chains and unmatched feedstock flexibility.
Polymer Production
(Production in MMT)
PP
PE
PVC
Ethylene
FY 2017-18
2.8
1.4
0.7
2.6
FY 2016-17
2.7
1.1
0.7
1.8
RIL manufacture polymer products across 6 sites and
supplies products to more than 70 countries. RIL maintained
the leading position in the Indian polymer market with a
share of 38%.
RIL is the world’s fifth largest producer of PP. During
FY 2017-18, the Company produced 2.8 MMT of PP and has a
pre-eminent position in the domestic PP market
with 50% share.
RIL successfully commissioned the ROGC project along
with downstream facilities. RIL’s total ethylene capacity now
stands at 3.6 MMTPA. Post ROGC start-up RIL became the
14th largest global PE producer with capacity of 2.2 MMTA.
Also, RIL became the 7th and 11th largest producer, globally,
for LLDPE and LDPE, respectively. The additional capacity
has been well absorbed by the growing demand in the Indian
market. RIL has a domestic market share of 21% in the overall
PE market. RIL is the only producer of LDPE in India, and
witnessed a surge in market share from 35% to 53% post
commissioning of ROGC.
RIL’s total PVC production was at 0.7 MMT and it has a 24%
market share in the domestic market.
Polyesters
FY 2017-18 polyester demand growth remained moderate,
with PET (+5%), Polyester Filament Yarn (+4%) and Polyester
Staple Fibre (-3%) y-o-y. Domestic cotton prices largely
remained stable y-o-y owing to tight availability, which was
favorable for polyester blending.
Polyester markets remain subdued due to introduction of
GST regime in the first half of the year, resulting in weaker
demand and low operating rates. Demand revived post
stabilisation of the GST regime, but there was a sharp
increase in imports due to higher GST rates on domestic
production. Higher tax rates across the polyester chain also
resulted in the shutdowns of textile units. Domestic markets
were also impacted by the increase in imports of fabrics
after the implementation of GST as almost all categories
of imports increased compared to pre-GST levels. Import
duties on certain categories of fabrics and end products
were increased subsequently, but imports continue to stay
at a high level.
Moreover, Polyester industry has been witnessing a gradual
shift in the value chain. Now, the Polyester industry dynamics
has shifted to ‘melt to PTY’ compared to earlier ‘melt to POY’
as most of the PTY producers have backward integrated
to POY.
PET demand remained largely stable over the previous
year. Higher GST slabs on the carbonated drinks segment
and disruptions in South India, dampened demand from the
sector; PET volumes from RIL’s Dahej facility has found good
acceptance in the international markets.
Polyester and Intermediates Production
Indian operational performance
Polyester production
(Production in MMT)
POY
PSF
PTY
PET
Fibre Intermediate Productions
(Production in MMT)
PX
PTA
MEG
FY 2017-18
0.8
0.6
0.3
1.0
FY 2016-17
0.8
0.6
0.3
0.9
FY 2017-18
3.7
4.1
1.2
FY 2016-17
2.3
3.9
0.7
Malaysian operational performance
(Production in MMT)
PTA
POY
PSF
DTY
FDY
PET
CY 2017
0.6
0.1
0.1
0.1
0.1
0.1
CY 2016
0.6
0.2
0.1
0.1
0.1
0.1
Integrated Annual Report 2017–18Management’s Discussion and Analysis 62
RIL’s Malaysian operations performance improved further
with focus on productivity improvement and niche markets.
Free Trade Agreements (FTAs) with Turkey and focus on
domestic market opportunities helped place products
at higher netbacks. Operations were streamlined during
the year with emphasis on improving yields of high quality
products, while maintaining a low-cost profile. Firm
PTA margins were supported by focus on reliability and
sustainability of PTA plant operations also helped improve
profitability.
Elastomers
Indian elastomers sector witnessed slow offtake at the
beginning of the year owing to regulatory imposition of
BSIV norms and GST preparedness and implementation.
Elastomers demand gradually improved post GST
stabilisation. Butadiene witnessed stable demand growth,
with demand of 313 KT during the year. Domestic capacity
for butadiene is 550 KTPA, with part of the production
catering to export markets. PBR and SBR demand in India
was around 191 KT and 300 KT, respectively in FY 2017-18
and is likely to grow at 5-7% annually in the medium-term.
Shortage of Carbon Black in India affected both the Tyre and
non-Tyre sector.
Elastomer / chemicals production:
(Production in MMT)
Butadiene
PBR
SBR
FY 17-18
0.2
0.1
0.1
FY 16-17
0.2
0.1
0.1
Transforming RIL Petrochemical business, building an agile organisation
R&M
Naphtha
propane
C3/ Reformate
Petrochemicals
Cracker
C2/ C3/ C4
Ethane
Ethane project
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
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice
63
R|Elan™ - Fabric 2.0: Smart on the inside,
Beautiful outside
R|Elan™ fabrics combine, in perfect proportions,
functionality and fashion and straddle across all major
apparel segments such as Active wear, Denim, Formal
wear and Women’s wear. R|Elan fabrics are currently placed
into three key buckets for apparel applications. They are
Aesthetic/Sensorial, High-performance and Eco-friendly.
R|Elan™ products will provide consumers next generation
fabrics which are in line with the latest fashion trends and
fulfill lifestyle needs as well.
Transforming Life to Quality Life – “Chemistry
for Smiles”
Reliance Petrochemicals constantly endeavors to harness
the power of Chemistry to enable products and services that
add value to life and bring smiles on end-consumer’s face.
To bring this thinking alive, Reliance Petrochemicals has
adopted the b2b2c (business-to-business-to-consumer)
model. Entire business ecosystem including the Research &
Development at Reliance is poised to partner its customers,
across the value chain, and help them develop end-products
that are in line with actual consumers latent and future
needs. Reliance refers to this journey as the ‘Chemistry for
Smiles’.
R|ELAN™
Recron® FS
•
•
•
Portfolio of specialty fabrics with perfect
blend of ‘art’ and ‘smart’
Enhanced performance, aesthetics,
increased breathability, dry feel, anti-
odour with excellent drape and hand feel
Eco-friendly fabrics
•
Modified polyesters with embedded fire
retardant components
• Engineered to prevent fire from spreading
• Enable weaving Smart Fabrics
RELX™
• Material innovation
•
Advanced composites with the strength
for tomorrow’s applications
• Creative innovation to make life more
comfortable
Advanced Solutions
•
•
Developing new lines of business in the
advanced materials domain
Incorporating 2-Dimensional and
nanomaterials like graphene to existing
portfolio of polymers
Integrated Annual Report 2017–18Management’s Discussion and Analysis 64
Advanced Material
Reliance is developing a new business vertical in
the Advanced Materials domain. The 2-dimensional
nanomaterials such as graphene are being added to the
existing polymer portfolio to deliver new formulated
materials that will provide exceptional value to the
customers. RelWood™ is an example of one such material
that looks and feels like high-quality wood but has superior
properties. It is a durable, water-resistant, fire-retardant,
and UV- and termite-proof product that can replace wood
across all applications. The company is in the process of
developing newer products in the areas of:
Enhanced Plastics and Elastomers – For light weighting and
disruptive performance
Fibre-Reinforced Composites – For light weighting and
reduction in steel usage in infrastructure projects
Composites and Carbon Fibre
During the year, RIL acquired the assets of Kemrock
Industries and entered the composites business.
The Company focussed its attention on thermoset
composites such as glass and carbon Fibre-Reinforced
Polymers (FRPs). The ability to deliver exceptional strength
(similar to or better than steel) at a significantly lower weight
is a critical performance attribute of FRPs. Additionally, FRPs
can withstand harsh weather, have a long life with minimal
maintenance, are corrosion resistant and can be moulded
into any shape. Composites are used in a wide range of
markets and applications: industrial, railways, renewable
energy, defence and aerospace. The market for composites
in India is over `30,000 crore and growing rapidly.
RIL expects the newly launched Reliance Composites
Solutions (RCS) business to be the No. 1 composites player in
India. RCS will develop the full range of capabilities, ranging
from composite part design, resin formulation and fibre/
fabric to the final part production. RIL will focus on design
and specifications driven markets and applications that are
critical to India and have the potential to grant better returns.
These include:
• Wind mill blades (especially those over 65 metres long) and
ancillary parts for the wind energy market
• Parts for railways and metros, which have exacting standards
of performance and safety (especially fire retardant)
• Innovative solutions such as carbon wraps to rehabilitate/
refurbish India’s old infrastructure – bridges, buildings (for
improved seismic performance) and pipes
RIL is investing in India’s first and largest carbon fibre
production line with its own technology – to cater to India’s
aerospace and defence needs as well as the specialty
industrial applications
Moreover, RCS will design and administer low-cost and
high-volume products such as modular toilets and homes to
support the Swachh Bharat Mission, disaster relief measures
and Housing for All programmes initiated by the Indian
Government.
RIL is building a robust competence around application
development, materials engineering and formulation
development to support the new as well as the existing
polymer businesses.
3D Printing
Industrial 3D printing (especially with metal) is reaching
an inflection point. To bring about a potential revolution
in manufacturing, RIL has developed the capabilities to
design and print a wide range of products using 3D printing
technology – in both plastic and metal – from prototypes to
functional parts.
Facilitating entrepreneurial spirit across
value chain
Action Taken: RIL has been
instrumental in structuring
reverse supply chain for
recovery of post-consumer
PET bottles which are then
recycled into polyester fibres
and filaments. Under this
initiative, RIL has assisted
in setting up of numerous
recycling units - M/s. Jenex
Enterprises being one such
example. It started business
in 2001 with volumes of 30
metric tonnes per month
and today process about
500-700 metric tonnes
per month, generating
employment for under
privileged section of society.
Outcome: Creating
value out of waste and in
the process, generating
employment.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 65
Circular Economy
For Reliance, ‘Sustainability’ is not just a word but it is
the ‘Way Reliance Operates”. RIL continues to focus on
promoting ‘Circular Economy’ and delivering ‘Societal
Value’. Reliance continues to be one of the largest recyclers
of the post- consumer PET waste and converting it into
value added, branded products like R|Elan™ and Recron®
Certified. RIL’s initiatives like Plasticulture provides
support to farmers in all areas of farming and improves
farm productivity substantially. Through innovation and
application of technology, RIL continue to create sustainable
products.
Petrochemical business has strengthened the customer
supply interface with highly digitised platforms, R&D focus
initiatives & product stewardship, for more information
please refer to page no 127.
Capex and Growth Plan
1)
ROGC Project: RIL successfully commissioned and
achieved design throughput of the World’s largest
Refinery Off-Gas Cracker (ROGC) complex of 1.5 MMTPA
ethylene capacity at Jamnagar. The ROGC complex is
built on Reliance’s core philosophy of deep feedstock
integration to establish industry leading cost and
efficiency benchmarks. This innovative approach of
integration with refineries provides a sustainable cost
advantage, making ROGC competitive with respect to
the crackers in the Middle East and North America, which
have feedstock cost advantage. The complex is also
integrated with downstream facilities of LDPE, LLDPE
and MEG. The ROGC will help RIL to achieve scale and
significantly boost product stewardship and market
offerings. This complex marks a paradigm shift in
the profitability and sustainability of RIL’s
petrochemicals business.
2)
Ethane project: RIL successfully completed the world
scale ethane import project last year. All the six VLECs
are operating at full capacity and delivering cargoes to
Dahej. Ethane cracking at Dahej and Hazira have been
streamlined and both the plants achieved the highest
ever ethylene production. Modification of feedstock
flexibility at Nagothane is also completed and the
complex is ready to receive ethane for cracking.
Business Stewardship
In keeping with the motto of ‘Chemistry to Smiles’, Reliance
continues to produce eco-friendly products such as
GreenGold (made from recycled PET bottles using renewable
energy, with one of the lowest carbon footprints globally),
R|Elan™ (a fabric with increased breathability, anti-odour
benefits, and excellent drape) among others. Additionally,
the company continues to be one of the largest recyclers of
PET bottles in India.
For a more holistic view of CSR activities, please refer to the
Report on Corporate Social Responsibility.
Cracker Control Centre at Jamnagar
Integrated Annual Report 2017–18Management’s Discussion and Analysis 66
Oil & Gas Exploration & Production
The year 2017-18 marked progress on plans to monetise discovered resources
and steps to rationalise the upstream portfolio.
RIL along with its JV partner plans to invest `40,000 crore (~US$6 Bn) to develop
the discovered deepwater resources in the KG D6 Block. Development work
for R-Cluster fields has commenced while Field Development Plans for MJ and
Satellite Cluster fields have been approved by the Government. These fields are
expected to come onstream in the next 3-5 years.
`40,000 crore
Investment planned over
the next 3-5 years to develop
KG D6 discoveries
Strategic Advantages & Competitive Strengths
Reliance’s upstream business encompasses the complete chain of activities from acquisition to exploration, development and
production of hydrocarbons in both conventional and unconventional areas. 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.
Project
Execution
Significant infrastructure
on the east coast
Safety
Partnerships
India’s first and till date
only greenfield deepwater
project.
India’s largest surface
footprint hydrocarbon
project in remote tribal areas
with no prior infrastructure.
RIL has commenced
development of discovered
resources in the KG D6
Block leveraging the existing
infrastructure on the East
Coast.
Over 10 years of safe
operation, with safety record
amongst the best in the
world since commencement
of production in Deep-water
block KG D6 and in Coal Bed
Methane.
Partnerships with global
majors in conventional
as well as unconventional
hydrocarbon plays.
The Partnerships combine
Reliance’s Project execution
skills with global expertise.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 67
P.M.S. Prasad
Naresh Narang
Sanjay B. Roy
With the steady ramp-up of production from the Coal Bed Methane (CBM) fields, in Sohagpur, Reliance is set to
become India’s largest producer of unconventional natural gas. To sustain the production, the second phase of
development has also commenced.
Reliance continues to focus on value preservation in the North America Shale Gas business. As part of portfolio
rationalisation, Reliance and its JV partner Carrizo sold their stake in the Marcellus shale plays to Kalnin Ventures.
Reliance and its partner Pioneer sold part of their acreage in the West Eagle Ford shale play.
Reliance conducts its operations responsibly with a track record of over 10 years of safe operations, at par with the
best in the world.
Market Environment
2017 was a turbulent year for the global oil & gas industry
driven by changing demand-supply equations coupled with
geo-political issues resulting in steady increase in crude
prices.
Brent prices ranged from US$45/bbl in June to ~US$64/bbl
by the end of the year. Average West Texas Intermediate
(WTI) crude oil prices for 2017 was also higher 18% y-o-y
averaging at US$50.95/bbl, US Natural Gas prices remained
strong and Henry Hub (HH) Gas price stayed close to or
above US$3/MMBTU for most of the year. Encouraging
demand from LNG and Mexican exports coupled with
subdued supplies supported higher gas prices.
With respect to Shale Gas operations, WTI and HH prices
were higher y-o-y, with WTI oil prices 18% higher at
US$50.95/bbl in CY 2017 and HH Gas prices 26% higher at
US$3.11/MMBTU. Also, gas and condensate benchmark
differentials improved.
Revenues
EBIT
EBIT (%)
*consolidated
Indian Regulatory Environment
During the last year, there have been many initiatives by
the Government of India to promote the Indian Oil & Gas
industry.
• Policy framework for early monetisation of CBM, which
provided complete Marketing and Pricing freedom for CBM
gas and eased operational issues
• Launch of Open Acreage Licensing Policy (OALP), which
provides options for operators to select exploration areas on
their own rather than wait for formal bid rounds
Financial and Operational Performance*
FY 2017-18
(` in crore)
5,204
(1,536)
(29.5%)
FY 2017-18
(US$ in million)
798.5
(235.7)
FY 2016-17
(` in crore)
5,191
(1,584)
(30.5%)
%
Change
0.3%
Upstream capital spending is expected to grow in 2018.
Major project FIDs are expected to come in unconventional
and deep-water areas (Brazil and GOM), with Operators
taking advantage of oversupply in the service sector to lock
in at lower costs.
For FY 2017-18, revenues increased by 0.3% to `5,204
crore. This marginal change was on account of better price
realisations and ramp-up of production in CBM which were
partly offset by decline in production in KG D6 and Shale Gas.
Consequently, upstream operations registered negative
EBIT of `(1,536) crore.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 68
Operational Performance – Domestic
Production Performance
management to overcome network and operational
challenges.
KG D6 is India’s first and only
greenfield deepwater project
JV production
KG D6
Oil
Gas
Condensate
Panna- Mukta
Oil
Gas
CBM
Gas
Units of
measurement
FY 2017-18 FY 2016-17
MMBBL
BCF
MMBBL
MMBBL
BCF
BCF
0.7
67.9
0.1
5.4
62.1
7.1
1.1
101.1
0.2
6.2
62.5
0.0
KG D6
KG D6 gas production declined by 27% for the year to 67.9
BCF due to natural decline of field and
shut-in of 2 D1D3 and 1 MA wells. KG
D6 operations continue to achieve field
uptime of 100%, which continues to
be the global standard for deep water
facilities. The major challenges faced
are associated with reservoir depletion,
sand and water influx.
Reliance’s near term aim is to maintain wells flowing and
sustain production until future projects are commissioned.
This involves effective reservoir and production
Control-cum-Riser Platform – KG D6
For enhancing recovery and flow assurance, Onshore
Terminal Booster Compressor Low Low Pressure (OTBC LLP)
project has been commissioned. This project will help sustain
D1D3 field production by extending life of flowing wells and
revival of D1D3 shut-in wells.
Panna-Mukta-Tapti
Panna-Mukta field produced 5.4 million barrel of crude, a
reduction of ~13% on y-o-y basis and 62.1 BCF of natural
gas, a reduction of 3% on y-o-y basis. The fall in production
is owing to natural decline in the field, shut in of wells due to
equipment issues and unplanned shutdown of the field due
to cyclone Ockhi. Loss in production was partially offset by
better production optimisation and revival of wells closed
due to integrity issues.
The PSC for Panna-Mukta Block is
scheduled to expire in December 2019.
Having reviewed the future potential and
risk profile, the JV partners have taken
a view of not to progress on seeking
extension of the contract and are
currently making necessary preparation
for handover of the assets to the Government’s nominee on
expiry of the PSC.
Tapti assets are under decommissioning. Plugging and
abandonment of all the Tapti wells has been completed.
Decommissioning activities for the associated facilities have
been initiated.
CBM (Sohagpur East & Sohagpur West)
Reliance commenced commercial production from its Coal
Bed Methane (CBM) block SP (West)–CBM–2001/1 in March
2017. More than 200 wells were put on production with
production ramp-up crossing the 1 MMSCMD level during
the year.
CBM Reservoirs are initially 100% saturated with water. At the
start of production, the wells will go through the ‘Dewatering
Phase’. In the dewatering phase of CBM production, water is
pumped out continuously to increase gas saturation in the
reservoir, resulting in ramp up of gas production from these
wells. The wells put on production have been predominantly
in dewatering phase this year and the production ramp-up
in next 6 -12 months is expected to make RIL the largest
unconventional natural gas producer in India.
Reliance Gas Pipeline Limited, a subsidiary of RIL,
commissioned the 302 km Shahdol-Phulpur Pipeline from
Shahdol (MP) to Phulpur (UP). This pipeline connects the
CBM Gas fields with the Indian Gas Grid providing access to
consumers across the country.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 69
Marketing of 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) in 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.
RIL hired CRISIL to carry out a fully transparent and
competitive bidding process with the objective of
maximising price for sale of CBM Gas. Three rounds of
bidding process were carried out this year. The first two
rounds of bidding were for short duration. The third round
of bidding, carried out in September 2017, was for sale of
CBM gas till FY 2020-21. These were the first open market,
transparent competitive auctions for CBM gas sales in India.
North American Shale Gas Operations
Production Performance
JV production
Gas
Condensate
Units of
measurement
BCF
MMBBL
CY 2017
111.8
4.7
CY 2016
130.3
7.3
Industry Background
US Shale Gas industry has shown remarkable resilience in
recent past and has leveraged the down turn to improve
operational efficiencies and to reduce services costs. The
advancement in shale technology was a key success factor
in both basins (wells with longer laterals and improved
completion designs). With improved cost structure and
improved outlook on prices, activity picked up and rig counts
increased in select shale plays (including Eagle Ford and
Marcellus) during 2017.
Business Performance
The Company continued with its prudent strategy to
improve the value of the remaining development inventory
and securing overall cost leadership.
As part of this strategy, the portfolio was rationalised:
Reliance Marcellus II LLC, a subsidiary of the company
that held assets in the Carrizo joint development; signed a
Purchase and Sale Agreement (“PSA”) on 5th October, 2017
with BKV Chelsea, LLC for sale of its assets in Susquehanna,
Clearfield and Wyoming counties effective 1st April, 2017, for
an initial consideration of US$126 MM subject to customary
adjustments. Additionally, Reliance II LLC would be entitled
to receive additional contingent consideration of upto
US$11.25 MM upon certain conditions being met as per PSA.
The transaction closed on 21st November, 2017.
Reliance’s aggregate capital investments across JVs
remained stable and was US$209 MM during CY 2017.
For 2018, the thrust remains on preserving long-term value
through high-grading of land and development portfolio,
retaining optionality, improving efficiency and well costs,
as well as optimisation of well spacing and completions for
enhanced recoveries.
Operational Performance
At Pioneer JV, drilling and completion activities commenced
at the end of 1st quarter of CY17 with the objective of testing
new well design (down spaced wells with longer laterals and
more intense frac’ing). At Chevron JV, there was no drilling
and completion activity in the JV operated areas, while there
was activity, in the non-operated areas. The joint ventures
drilled 23 wells and put 41 wells on production. Thus there
were 1,129 wells producing by the end of CY 2017.
The principle of Safety first– embedded in Reliance’s value sytsem
Process safety
Cyber Security
Enhancing Fire & Safety System
Action
Installed the most contemporary version
of Rim Seal Fire Protection System for
Condensate storage floating roof tanks
for extremely fast detection and effective
suppression of fire at the incipient stage.
Exhaustive assessment of KG D6
Control System covering all critical
infrastructure
Installed Aspiration smoke detectors
at very early stage at Field Auxiliary
Room (FAR) of KG D6
Re-designed Control System
architecture on account of
perceived increased risk of cyber-
attacks
Software & hardware replaced with
contemporary version to mitigate
the risk
Outcome
Enhancing the safety of tank
Secure control system designed for
the production facilities
Additional barrier to mitigate the risk
of fire
Integrated Annual Report 2017–18Management’s Discussion and Analysis 70
Gross JV production was ~0.88 BCFe/d for all 3 JVs, down
17% y-o-y. Reliance’s share of production and sales were
at 139.7 BCFe and 121.4 BCFe, respectively in CY 2017,
compared to 174.0 BCFe and 150.4 BCFe in CY 2016.
Carrizo JV
Prior to the sale in November 2017, gross JV production was 39
BCFe as compared to 43 BCFe in CY 2016, while Reliance share of
net sales was at 19 BCFe compared to 21 BCFe in 2016.
Digitally enabled
upcoming fields
Pioneer JV
At Eagle Ford, development activities commenced as the
JV tested wells with new well design that involves higher
intensity well completion and changed well spacing, with
encouraging initial results. JV drilled 11 wells while it frac’ed
and put on production 20 wells during
H2 2017. The 2017 wells were very
successful. With limited activity and
natural decline of the existing wells,
year average Gross JV production was
35% down at 118 BCFe compared to 181
BCFe in CY 2016, while Reliance share
of net sales volume was at 47.5 BCFe
compared to 72.9 BCFe in CY 2016. The
share of liquids improved slightly from 65.2% to 67.0% in
CY 2017. Reliance and its partner Pioneer sold part of their
acreage in the West Eagle Ford shale play which was not part
of near term development plan.
Chevron JV
Progress on pad optimisation and on well designs combined
with progress towards Upper Quartile (notably well costs and
LOE) were key achievements during 2017. This has set stage
for restarting development activity in JV operated areas
during CY 2018.
Year average gross JV production declined by 5% to 159
BCFe from 166 BCFe in CY2016, reflecting slowdown in
activity despite improved operational efficiency and strong
well performance. Reliance share of net Sales volume stood
at 55.0 BCFe, compared to 56.7 BCFe in CY 2016.
Exploration Outlook
Fuel strategy and energy basket
Future energy outlook indicates deliberate shift towards
cleaner fuels. There has been a revision in target
investments by industry majors under the new business
environment. Natural gas, being cleaner,
is an ideal transition fuel and stranded
resources of gas in Indian basins form a
good investment option.
Considering the price forecast and
low carbon economy, RIL’s exploration
targets are aligned to prepare for the
future by improving efficiency and
leveraging integrated business model. The key components
of the strategy include:
• Sustain production and expeditiously develop discovered
resource base
• Safe and reliable commissioning and operation of the fields
• Maximise recovery and value generation
Technology & Innovations
In FY 2017-18, focus was on upgrading systems and
technologies in light of upcoming deepwater development
projects, so that the “Upcoming Fields” are digitally enabled in
all possible manner.
A strong foundation for “Data Driven Decisions” is being laid
through the use of Open stack technologies, OEM software
stack and Big data analytics technologies. Efforts are being
Business stewardship from waste
water to farming
Action Taken:
• As part of gas production
cycles in CBM, the gas wells
go through a de-watering
phase, wherein the water
from the wells oozes out
along with gas
• Process continues till
the life cycle of the well
producing roughly 1 lakh
liters of water
• A gravity based water flow
to the fields was designed
along with farmers
• Farmers got water 2-3
times in the crop cycle even
in drought like conditions
• 245 farmers of
neighbouring villages
sowed crop in 15 lakh
square meters (370 acre)
and harvested 4,000
quintals, almost doubled
their yield
Outcome: Enhancing
income of farmers
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 71
made to bring in “Platform way of working” powered by
appropriate selection, design and use of digital platforms, to
support the new fields.
Reliance received US Patent (No. US 9,926,250 B2) on
27th March, 2018 for development of “System for
Regenerating Mono Ethylene Glycol and A Method Therof”
for RIL’s KG D6 Operations.
Bio-CBM
To increase recovery from CBM fields, Reliance has engaged
in R&D efforts in addition to the established methods.
Current focus of this research is Bio-CBM.
In CBM, methane gas which is adsorbed and trapped
naturally in coal seams is produced. Bio-CBM technology
uses microbe injection to produce in-situ methane where
either the coals are devoid of methane or conventional CBM
extraction is uneconomical.
Currently this technology is in nascent stage and the initial
lab tests has shown encouraging results with respect to
methane production potential. Further work is planned
to establish ability of this technology to scale up to a
commercial operation.
Reliance is leveraging its infrastructure (advance
laboratories), diverse inter-disciplinary technical skills,
CBM production expertise, CBM fields and knowledge of
regulatory requirements to give impetus to the Bio-CBM
research.
Update On Arbitration And Other Legal Issues
KG D6 Cost Recovery Arbitration
Arbitration claim commenced by the Company in November
2011 seeking declaration that it is entitled to recover 100%
of its Contract Costs under the Production Sharing Contract
(‘PSC’) for the KG D6 Block. 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 (‘PILs’) were filed before the
Supreme Court against the Company in relation to the KG
D6 PSC seeking reliefs in the nature of disallowance of cost
recovery, quashing GOI’s decision to approve the certain gas
price formula, termination of PSC et al. The Company has
submitted that the underlying issues in the PILs are already
subject matter of ongoing arbitrations relating to the KG D6
Block. Matter is still pending in the Supreme Court.
PMT Arbitration
Arbitration initiated by BGEPIL and RIL against GOI on
16th December 2010 under PSC for Panna – Mukta and Tapti
blocks due to difference in interpretation of certain PSC
provisions between Claimants and Government.
The Tribunal by majority issued a final partial award (‘FPA’),
and separately, two dissenting opinions in the matter on
12th October 2016. Claimants challenged certain parts
of the FPA before the English Courts, which delivered its
judgment on 16th April 2018 and has decided to remit one
of challenged issues back to the Arbitration Tribunal for
redetermination. Arbitration Tribunal is yet to schedule the
quantification phase of the arbitration, which will take place
post determination of Claimants’ request for increase in cost
recovery limit under the PSCs.
Yemen Arbitration
Arbitration filed before ICC Paris by Reliance Exploration
& Production DMCC and Hood Energy Limited (together
‘Claimants’) against the Republic of Yemen (‘RoY’) claiming
that Force Majeure declaration and subsequent termination
of the Production Sharing Agreements for Yemen Blocks 34
and 37 were valid and that Letter of Credit cannot be drawn
by the RoY. The ICC Tribunal ruled in favour of the Claimants.
Annulment application against the ICC Award filed by RoY is
ongoing before the Paris Courts.
Dispute with NTPC
NTPC filed suit for Specific Performance of Contract 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 the Company’s fact witnesses is to be cross
examined by NTPC.
Arbitration Relating to Alleged Migration of Gas
GOI sent a notice to the KG D6 Contractor on 4 November
2016 asking the Contractor to deposit approximately
US$1.55 Bn on account of alleged gas migration from
ONGC’s blocks. RIL, as Operator, for and behalf of all
constituents of the Contractor, initiated arbitration
proceedings against the GOI. Arbitration hearings have
concluded and the Award is awaited.
Capex and Growth Plan
KG D6
Reliance announced plans to embark on the next wave of
projects to develop existing hydrocarbon discoveries in KG
D6 Block. The three planned projects - R-Cluster, Satellite-
Cluster and D55 (MJ) fields, are expected to bring onstream
additional 30-35 million cubic metres (~1 billion cubic feet)
of gas per day, in phases, over 2020-22. With these projects
Reliance will venture into ultra-deepwater and High Pressure,
High Temperature areas - a first in India.
Reliance has rich project execution experience including
knowledge in deep-water oil & gas projects. Additionally,
it expects to leverage its partnership with BP, existing
infrastructure in the Krishna-Godavari Basin and current
downturn in the capital equipment & service provider
market. Production from these projects is expected to
Integrated Annual Report 2017–18Management’s Discussion and Analysis 72
reduce India’s import dependence and amount to over 10%
of the projected gas demand in 2022, benefitting India and
domestic consumers at large. RIL along with its JV partner
plans to invest `40,000 crore (~US$6 Bn) to develop the
discovered deepwater resources in the KG D6 Block.
For R-Cluster development, all major contracts have
been awarded. Engineering & fabrication activities have
commenced. In FY 2018-19, Reliance plans to commence
drilling & completion for development wells and its first
offshore installation campaign.
Management Committee (MC) has approved the Field
Development Plans for MJ fields, Satellite fields and Other
Satellite fields in February, 2018. Reliance has initiated
contracting long lead items for wells and facilities for these
projects.
Simultaneous development of the three projects will
enhance overall capital efficiency and build on project
synergies.
CBM
To sustain plateau production, further CBM development
is being undertaken. Development activities of block SP
(West)–CBM–2001/1 Phase II and SP (East)–CBM–2001/1
block is currently underway. Phase II includes drilling and
completion of more than 180 wells along with an additional
gas gathering station and associated water gathering
stations for collection and processing of CBM Gas and water
respectively.
Business Stewardship
Employee volunteering and community participation are
encouraged within the Company. Acting as a responsible
business, the Company also ensures productive employment
for members of the local community. For a more holistic view
of CSR activities, please refer to the Report on Corporate
Social Responsibility.
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 blocks. RIL also has two joint
ventures in North American shale plays with Pioneer Natural
Resources and Chevron.
CBM Group Gathering Station 12 at Night
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 73
Oil and Gas Portfolio
Block
Country Partner
Conventional
Domestic
KG-DWN-98/3
Panna Mukta
India
India
Mid and South Tapti
India
NEC-OSN-97/2
CB-ONN-2003/1
India
India
NIKO - 10%;
BP - 30%
BG - 30%;
ONGC - 40%
BG - 30%;
ONGC - 40%
BP – 33.33%
BP - 30%
RIL
Stake
JV Acreage
(in acres)
Status
60%
3,16,216 2 Producing Fields
FDP approved for R-Cluster, Satellite Cluster & MJ
30%
2,98,256 Producing Fields
30%
3,63,492
66.67% 2,05,520 DOC reviewed. Part of the Block relinquished
14,826 FDP approved for 8 discoveries. Part of Block
70%
relinquished as RIL did not enter the next
Exploration Phase
GS-OSN-2000/1
International
Block 39
Unconventional
Domestic
CBM
SP(East)-CBM-
2001/1
SP(West)-CBM-2001/1
International
Shale
Pioneer JV
Chevron JV
India
Hardy - 10%
90%
1,48,263 DOC reviewed
Peru
Perenco - 55%;
PetroVietnam -35%
10%
2,13,746 Withdrawn from Block; Formal assignment awaited
India
India
USA
USA
-
-
100%
1,22,317 Development ongoing
100%
1,23,552 Production started
Pioneer – 46.4%;
Newpek – 8.6%
Chevron – 60%
45%
1,49,128 Producing
40%
2,18,104 Producing
* Conventional and CBM acreage converted into acres using 1 sq.km.= 247.1053 acres
During the Year, Blocks MY17 and MY18 in Myanmar were relinquished on account of lack of prospectivity.
RIL also undertook portfolio rationalisation in US Shale business with sale of assets held in JV with Carrizo, and sale of some acreage held in JV with Pioneer
Resources in West Eagle Ford shale.
Recycling green Waste
Action Taken:
• Daily 260 cu. ft. of green
waste is generated through
the routine landscape/
Green Belt maintenance
activities
• Vermicomposting unit is
developed to process green
waste to a fine textured
good quality compost by
means of earthworms
• Compost is utilised as an
organic manure for existing
ornamental plants & fruit
orchards
• Yearly, KG D6 is recycling
about 3120 cu. ft. of green
waste & converting it in a
108 tonnes of fine textured
vermicompost
Outcome: In-house bio-
degradation of the available
green waste by using cost
effective techniques
Integrated Annual Report 2017–18Management’s Discussion and Analysis 74
Retail
Reliance Retail has been one of the 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.
During the year, Reliance Retail has become the first retailer in India to cross the US$10 billion revenue milestone. Segment
PBDIT for FY 2017-18 grew by 114.5% y-o-y to `2,529 crore from `1,179 crore. With 7,573 Retail stores, 495 Owned Petro
Retail Outlets and 4,400+ Cities presence, Reliance Retail is India’s Largest Retailer.
The performance is a reflection of strong business fundamentals and focussed execution by a highly trained and capable
team. Reliance Retail is leveraging RIL’s ecosystem and group strengths to fuel the next stage of growth.
Reliance Retail continues to deliver its promise of trust to all its customers, suppliers and employees.
`2,064 crore
45% CAGR
Retail segment recorded
its highest ever EBIT
Five year revenue growth;
doubling revenue every two years
Strategic advantages and competitive strength
Diversified portfolio of stores
across various consumption
baskets
Adaptive /
Responsive
Serving the
underserved markets
Reliance Retail has developed and
strategically positioned wide array
of stores with a mind-set to serve
customers and achieve leadership
within its category. The strategy has
worked well as Reliance Retail has
achieved leadership in key consumption
baskets and has emerged as India’s
largest retailer.
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.
Reliance Retail has been consistently
expanding at the rate of more than
1 store every day for the last 5 years
penetrating in to markets unserved and
underserved by organised retail.
It enjoys a first mover advantage in
many cities.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 75
Subramaniam V. Darshan Mehta
Akhilesh Prasad
Sunil Nayak
John Wilcox
Damodar Mall
Brian Bade
Kaushal Nevrekar Ashwin Khasgiwala
Customer focussed
robust ecosystem
Partner of
Choice
Multi-channel strategy
Reliance Retail has created an
ecosystem consisting of farmers,
manufacturers, suppliers, supply chain
and logistics partners, distribution
partners with a scalable and integrated
network of infrastructure. This
enables it to provide unlimited choice,
superior value proposition, quality and
unmatched experience across all retail
stores.
Reliance Retail has emerged as the
partner of choice for International
brands and has established exclusive
partnerships with many revered
international brands. It operates the
largest portfolio of international retail
brands in India.
Reliance Retail has adopted multi-
channel strategy and has integrated
‘offline-online’ models to truly
differentiate the customer experience.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 76
Reliance Retail Operating Model
Farmers, growers, small & large enterprises,
regional producers, village & cottage
industries
Interventions across value chain-
from planning, production, quality,
procurement to product support
and product feedback
Buy/
Source
Design and
Sourcing Partners
Development of innovative and superior
products for private brands; Contracting
committed capacities to ensure timely
availability of products
Supply Chain and
Logistics Partners
Seamless movement of products
ensuring freshness and availability
at all times
Move
Integrated Network of
Distribution Centres &
Transport Fleet
Stores, e-com, connected
kiosks, catalogue sales
Providing omni-channel
experience to all customers
Sell/
Support
ResQ
Customer Centricity
Relentless focus on
serving customer needs
Engineering, Construction,
Support Services
Strong, cluster based EPC and
support teams executing rapid
store expansion
Infrastructure
Backbone
Technology
Adopting next generation technology
for better decision making and
improving customer experience
RELIANCE RETAIL ECOSYSTEM
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 77
Market Environment
FY 2017-18 witnessed several important reforms taking place
in the economy. The Government implemented Goods and
Services Taxes with effect from July 2017. The Maharashtra
government permitted shops and retail establishments in
the state to remain open 24 hours a day, seven days a week
and also reduced compliance requirements.
India’s consumption story remains strong. India’s nominal
GDP per capita income is estimated at `1,27,2921 in 2017-
18 closer to US$2,000 mark2. Favourable macroeconomic
parameters, young and aspiring population, growth of
digitisation and internet penetration, shift from traditional to
modern retail channels including e-commerce are all likely to
drive this consumption boom. Indian consumers are evolving
with increasing willingness to spend on wider assortment
of products available at better quality and value. Reliance
Retail’s investments in technology, infrastructure, business
processes and people would ensure that Reliance Retail is
always ahead of the curve in serving its customers.
Presence Across Consumption Baskets
India’s retail market is estimated at US$616 billion in
FY 2015-16 and is expected to grow at a CAGR of 12%
reaching US$960 billion by FY 2019-20 . The penetration of
organised retail in India at 9% is very low. However, organised
retail is growing at a faster pace and is estimated to jump
threefold from US$55 billion in FY 2015-16 to US$161 billion
by FY 2024-253.
Reliance Retail has established a large presence across
all consumption baskets, and is a leading player in food,
consumer electronics and fashion retailing delivering
superior value to its customers, suppliers and shareholders.
Business Overview
Reliance Retail is the retail initiative of Reliance Industries
and an epicentre of its consumer facing businesses. It has
adopted a multi-retail concept strategy and operates a wide
array of store concepts which caters to diverse needs of the
customers across core consumption baskets of Grocery,
Consumer Electronics, Connectivity, Fashion & Lifestyle and
Petro Retail.
s
t
e
k
s
a
B
n
o
i
t
p
m
u
s
n
o
C
Grocery
Consumer Electronics
Fashion & Lifestyle
Petro
Grocery
Food & grocery is the largest consumption category
accounting for 67% share of the retail market. It is estimated
at US$413 billion in FY 2015-16 and is expected to grow
at a CAGR of 11% reaching US$634 billion by FY 2019-203.
The penetration of organised retail is lowest at 3% in this
category. However, organised grocery retail is expected to
grow at a CAGR of 24% reaching US$31 billion by FY 2019-203
from US$13 billion in FY 2015-16. This depicts tremendous
potential for Reliance Retail to penetrate in this category.
In grocery, Reliance Retail operates three unique store
concepts: Reliance Fresh, Reliance Smart and Reliance Market.
Each store concept has a compelling store experience,
engaging store staff and a unique price value proposition.
1 http://www.mospi.gov.in/sites/default/files/press_release/nad_pr_2eni_28feb18_0.pdf
2
3 Edelweiss Research Report titled ‘India Retail Return of the Renaissance’
IMF: http://www.imf.org/external/datamapper/NGDPDPC@WEO/OEMDC/ADVEC/WEOWORLD/IND
Integrated Annual Report 2017–18Management’s Discussion and Analysis
78
Reliance Fresh is a neighbourhood store concept focused
on providing fresh fruits, vegetables and products for
daily household needs with a strong focus on providing
convenience, round the clock freshness at affordable prices.
With three core promises of Fresh Hamesha, Available
Hamesha and Savings Hamesha, Reliance Fresh provides good
quality products across entire grocery needs of a household.
Reliance Smart is a destination supermarket store with a
simplified and strong value proposition “Big Shopping equals
Smart Savings”. The store offers wide range of products with
all products competitively priced all year round, thus providing
households more savings every day. www.reliancesmart.in
is Reliance Retail’s strategic initiative to take Reliance Smart
Omni channel and is currently operational in select cities.
It is an initiative to build an online sales channel for grocery
needs of consumers with focus on leveraging the fulfilment
through existing network of Reliance stores and supply chain
infrastructure.
Reliance Market is India’s largest cash and carry store chain
serving thousands of traditional kiranas, hotel, restaurant
and catering (HORECA), small and medium institutions and
households. It works closely with its member partners and
offers solutions encompassing delivery, payment, etc. The
business operates on the principle of ‘buy for less’ – ‘operate
for less’ – ‘sell for less’ – ‘grow sales’ relying on higher
efficiency of asset utilisation and passing on higher value to
customers. The value thus created by Reliance Markets helps
in supporting member partners offering them ‘profits for your
business-savings for your home’.
Over the years, Reliance Retail has developed a wide range of
offerings under its own brands. Best Farms, Good Life, Masti
Oye, Kaffe, Enzo, Mopz, Expelz, Home One, Graphite, RelGlow,
etc. are some of the brands that are offered in categories such
as home and personal care, staples, food FMCG, and general
merchandise. These brands are available across Reliance
Fresh, Reliance Smart and Reliance Market stores and offer
superior price-value proposition.
Reliance Retail directly partners with a large number of farmers
and small vendors in a farm-to-fork model. The linkages with
the farm has brought about transformational changes in the
quality of life of the farmers. It is enhancing the quality of
produce, reducing wastage by shortening the time to move
fresh produce and reducing intermediaries in the value chain,
thereby benefiting all.
Consumer Electronics
Consumer electronics accounts for nearly 6% of India’s retail
market. It is estimated at US$35 billion in FY 2015-16 and is
expected to grow at a CAGR of 16% reaching US$63 billion
by FY 2019-20 . The penetration of organised retail in this
category is 25% and the organised consumer electronics retail
is expected to grow faster at a CAGR of 32% from US$9 billion
in FY 2015-16 to US$20 billion by FY 2019-203.
In consumer electronics, Reliance Retail operates two store
concepts viz., Reliance Digital and Jio Store. These concepts
are backed by ResQ, India’s first and only ISO certified, multi-
product, multi-brand and multi–location service network
providing end-to-end product life cycle solutions.
Procurement from farmers and
mandis across the country
47 Collection Centres & 14 Processing
Centres (3.6 lac sq. ft.) Pan-India.
Overnight processing, ensuring
freshness, quality and hygiene
Fresh fruits and vegetables delivered
every morning to all stores at 8.00 am
Operate cold rooms at distribution centres and fleet of vehicles to ensure freshness and quality of fruits and vegetables
3 Edelweiss Research Report titled ‘India Retail Return of the Renaissance’
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 79
Reliance Digital is a destination store offering comprehensive
assortment of top electronics and consumer durable brands,
a large selection of innovative products, attractive pricing
and best-in-class service. Its product portfolio varies from
a small memory card to large household appliances offering
a delightful ‘all under one roof’ shopping experience to
consumers. It commands market leadership in high-end
consumer electronics and home appliance categories such as
ultra-high definition TVs, side by side refrigerators, top load
washing machines and inverter air conditioners.
Reliance Retail has a wide portfolio of own brand products
under “Reconnect”, “Jio Phone” and “LYF” brands. The brands
are built on the premise of product innovation, unmatched
user experience and superior quality and gives customers a
wider choice of products that serve their needs.
Jio Store and Jio Point are a small store concept that caters
to rapidly growing market for mobility and communication
products. They offer latest assortment of mobile phones,
communication devices, IT products, accessories and Jio
products & services to customers. They also extend Reliance
Digital’s reach by offering a large assortment of consumer
durables through catalogue & web-sales. In a short period,
Reliance Retail has established Jio Store and Jio Point as the
country’s largest mobile phone retail chain. Jio Store and
Jio Point are increasingly becoming a distribution platform
for most national and international brands as they offer
tremendous reach to partner brands.
Fashion & Lifestyle
Apparel & accessories account for 8% of India’s retail market
and is the second largest category after grocery. Demographic
dividend, proliferation of fashion retail chains and increasing
demand for branded apparel continues to drive growth for
the apparel & accessories category. It is estimated at US$49
billion in FY 2015-16 and is expected to grow at a CAGR of
11% reaching US$74 billion by FY 2019-20. Organised retail
penetration in apparel category is at 22% and the organised
apparel is expected to grow at a CAGR of 22% from US$11
billion in FY 2015-16 to US$24 billion by FY 2019-203.
Reliance Retail is the leading fashion apparel retailer in India
and has adopted a multi-model approach in reaching out to
its customers through various retail concepts that cater to
customer segments from value to premium and luxury.
Trends, the apparel and accessories speciality retail chain,
enjoys market leadership as the largest value fashion retailer
in India. Trends brings a compelling portfolio of national
brands and own brands. A range of own brands such as
Avaasa, DNMX, Netplay, Performax, Teamspirit, etc have
found strong traction with customers seeking fashionable
products at better prices. Each of these brands caters to
diverse tastes and preferences of the customers. Over
the years, the own brand portfolio of Trends has grown
in strength and provides a competitive advantage to the
business. Trends is vertically integrated with complete
control over fashion value chain from designing to fabric
souring, manufacturing, logistics and distribution. It has thus
created a robust ‘fibre-to-wardrobe’ operating model, with
strong portfolio of own brands, helping it to quickly adapt to
emerging fashion trends.
Presence Across All Income Segments in Fashion and Lifestyle
Luxury
Premium
Mid Segment
Value Fashion
Value Apparel
International Partner
Brands
AJIO I M&S I Project Eve
Trends I Footprints
Reliance Market I Smart
Strategically
positioned retail
concepts to serve
customer across
income segments
Integrated Annual Report 2017–18Management’s Discussion and Analysis 80
Reliance Footprint is a leading family footwear destination,
offering a wide range of products from over 50 prominent
international, domestic and own brands. The stores have
mid to premium positioning, offering varied collection of
products in footwear, luggage, handbags & accessories.
Reliance Retail operates a curated fashion & lifestyle
e-commerce platform www.ajio.com (AJIO). Celebrating
fearlessness and uniqueness, AJIO is constantly looking to
bring a fresh, current and accessible perspective to personal
style. The platform features an exclusive handpicked
collection of merchandise from international fashion brands,
Vertical Integration Across Fashion Value Chain
Fully integrated operations from designing to distribution
Designing
Sourcing and Manufacturing
Logistics and Distribution
Work directly with fabric
innovators globally to ensure
price, range and quality control
Over 100 full time designers,
freelancers and international
design houses
Design capabilities through
design studios in Bengaluru and
London supported by design labs
in 6 cities in India
Dedicated manufacturing base
of 250+ vendors in South Asia
and India
Sourcing offices in China and
Bangladesh to support low-cost
manufacturing
Sourcing from leading national and
international brands at various
locations throughout the country
Fresh look to the store every
60 days
Five apparel aggregation centres
in India to serve stores within
48 hours
Indian brands and own labels. AJIO delivers unique value proposition by offering styles that are handpicked, on trend and at
best prices.
Reliance Jewels is the destination for fine jewellery with thousands of exquisitely crafted gold, diamond and bridal jewellery.
The stores provide a delightful customer experience to customers with its 100% purity, transparency, range of designs and
competitive pricing. It 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.
Technology enabled safety pendant
Action Taken:
• The Company introduced
a technology-enabled
pendant, embedded with
a bluetooth device that is
used to trigger an alarm
to 5 emergency contacts.
The wearable product is
called Aavaran. It is light,
affordable, and has a 10
day battery life. When the
distress signal is triggered,
5 people will get an IVR
Recorded Call (15 sec), an
SMS with the user location
and the user gets an option
to see and navigate to
nearest safe place. “Call
Police” option routes the
call to the nearest police
control room.
Impact: This device benefits
women and addresses
the societal challenge of
women’s safety. The device
would instil a sense of
security and comfort to the
individual and their families.
Reliance Retail, through Reliance Brands, has a portfolio of over 40 revered international brands that spans across the
entire spectrum of luxury, bridge to luxury, high-premium and high-street lifestyle. The strong brand portfolio reinforces
Reliance Brand’s position as a partner of choice for best international brands. Leveraging on to Reliance Retail’s deep market
understanding, unwavering focus and strong operating capabilities, many of its partner international brands have made India
as a significant market outside of their home countries and have largest store presence in India than any other country. This
reflects the trust and optimism which Reliance Retail and its partner brands share with each other.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice
81
Qwik Mart – convenience store co-located with petro outlet
Jio point: Serving untapped market
Petro Retail
Reliance is a leading private sector petro retail operator with 495 owned Petro Retail outlets. These outlets yield significantly
higher volumes than an average industry outlet led by efficient processes, technology backbone and well trained employees.
It has Pan-India coverage offering diesel, petrol and LPG to its customers.
Financial and Operational Performance
Parameter
Revenue
PBDIT
EBIT
EBIT Margin
FY 2017-18
(` in crore)
69,198
2,529
2,064
3.0%
FY 2017-18
(US$ in million)
10,617
388
317
FY 2016-17
(` in crore)
33,765
1,179
784
2.3%
% Change in
y-o-y
104.9%
114.5%
163.3%
Reliance Retail achieved a turnover of `69,198 crore in FY
2017-18, more than doubling from the turnover of `33,765
crore achieved last year. The business delivered an EBIT of
`2,064 crore for FY 2017-18, more than doubling from `784
crore achieved last year. During the year, Reliance Retail
added 221 stores and 3,736 Jio Points.
Reliance Retail operated 7,573 retail stores in over 4,400
cities covering an area of 17.7 million sq. ft. as on 31st March,
2018. Reliance Retail operated 495 petro retail outlets as on
31st March, 2018.
Business Performance
Reliance Retail demonstrated stellar operating performance
during FY 2017-18 with strong growth across grocery,
consumer electronics and fashion & lifestyle. This was
backed by a healthy blend of store expansion and same store
sales growth across all its store concepts.
In grocery, the Fruits category is consistently showing high
growth in Reliance Fresh and Smart backed by its supply
chain and sourcing efficiencies. According to Nielsen,
Reliance Fresh and Smart account for over 50% of all fruits
and vegetables sold in modern trade. Reliance Fresh and
Smart stores crossed a milestone of 500 stores mark during
the year and are becoming a preferred destination for buying
fruits and vegetables, staples, beverages and consumer
products.
Qwik Mart, a new convenience store concept, was launched
during the year. Qwik Mart stores are co-located with
Reliance Petro Retail outlets and efficiently leverage the
group strength and resources.
Reliance Market witnessed strong same store sales
growth helped by growth in Kirana customers, better value
proposition and focused customer strategy.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 82
In consumer electronics, Reliance Digital outpaced market
growth across key categories and delivered high double-
digit same store sales growth. Strengthening its product
proposition, Reliance Digital forged a long-term exclusive
partnership with Sharp for High-End TVs. This enhances
Reliance Digital’s competitive advantage in High-End TVs
category. Exclusive assortment, strong value proposition,
ResQ’s service promise and regional focus being the
distinguishing factors which contributed to an impressive
growth. ResQ carried out over 1.2 million repairs and
installations during the year, an increase of 31% over last year.
To further enhance its distribution reach for consumer
durables and connectivity solutions, Reliance Retail has
operationalised 3,736 Jio Points in over 3,700 cities during
the year. These cities are key feeder markets and would
provide access to untapped semi urban and rural market
for Reliance Digital. Jio points serve as a nodal point for
consumers to obtain and recharge Jio services and facilitate
sale of mobility, connectivity and consumer durable products
directly and through catalogues, kiosks and other modes.
In fashion & lifestyle, Trends is the fastest growing apparel
retailer in the country with 458 stores across 223 cities in
28 states. Reliance Retail has added over 100 Trends stores
during the year with ~1 million sq.ft. of retail space. No other
multi-brand apparel retail chain in the country has achieved
such a large expansion in a year and widespread presence.
Trends witnessed over 88 million customer walk-ins during
the year, making it a preferred destination for customers.
Reliance Jewels launched ‘ASYA’, an exclusive handcrafted
collection which is inspired by noble bird HAMSA (or SWAN)
from a leading Indian designer during the year. It continues to
attract strong customer traction by providing widest range,
stunning designs, guaranteed purity & quality and a pleasant
shopping experience.
Project Eve, a new store concept positioned in the mid-to-
premium segment, was launched during the year. Project Eve
is a unique, one-stop, experiential store concept targeting
women in the age group of 25+ and celebrates the spirit
of women by serving them with wider fashion and lifestyle
Curated Fashion and Lifestyle
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 83
offerings, for all occasions, moods and purposes. Project Eve
stores also showcase Marks and Spencer’s curated range of
lingerie and beauty products through a SIS format, the first
ever by Marks and Spencer in India.
AJIO with a multi-fold increase in customer eyeballs, orders
and enhanced last mile delivery to over 12,000 pin codes has
emerged as one of the top fashion e-commerce destinations
in a very short span of time. It has reached to 2.5 million
followers across social media and ranks among the top
shopping apps on Apple iOS and Google Play Store.
During the year, Reliance Brands further strengthened its
partnerships of international brands by acquiring 46.6%
equity stake in Genesis Luxury Fashion Pvt. Ltd, which
operates a rich portfolio of brands such as Armani, Canali,
Michael Kors and many others. Together, Reliance Retail now
operates the largest portfolio of international retail brands
in India.
In petro retail, 47 petro retail outlets were recommissioned
during the year. Reliance Petro Retail outlets have robust
automation of daily fuel pricing at 100% of operational retail
outlets, ensuring customers of correct and timely price
implementation.
Reliance Retail: Partner of Choice
Outlook
Over the past decade, Reliance Retail has built India’s largest
retail infrastructure with 7,573 brick and mortar stores across
4,400+ cities, 5.6 million+ sq. ft. of warehousing facility, a
captive fleet of over 1,300 dedicated trucks, state of the art IT
systems to manage entire retail operations and e-commerce
presence serving more than 12,000 pin codes. This investment
has helped Reliance Retail achieve an unprecedented growth in
India’s organised retail market. Keeping pace with the market
growth and evolving consumer shopping habits, Reliance Retail
has a planned roadmap to capture a significant share of the
organised retail. With aggressive expansion plans, Reliance
Retail is getting future ready and set to further strengthen
and consolidate its leadership position in organised retail. This
expansion will be achieved through the following key pillars:
a)
b)
Augmenting geographical reach across all
consumption baskets
“Bettering the Lives of Indians” every day has been the
core focus of Reliance Retail since inception. Reliance
Retail has the ambition of reaching the hinterlands of
the country and is putting together a framework of
expanding each store concepts across tier 2, tier 3 cities
and beyond to achieve market leadership. It will leverage
and interplay strengths with Reliance Jio to execute this.
Innovating newer store concepts and channels to
meet customer expectations
During the year, Reliance Retail rolled out and expanded
newer store concepts like Project Eve and Trends
Woman. These newer concepts are already resonating
with target customers. In order to cater to growing and
diverse customer needs, Reliance Retail will continue to
Integrated Annual Report 2017–18Management’s Discussion and Analysis
84
c)
d)
innovate and partner with revered international brands
to bring world-class products and services to Indian
consumers.
Enhancing customer experience across all
concepts and channels
Convergence of Online and Offline retailing is being
followed by all retailers to offer seamless experience
to their customers. As part of 2.0 initiatives, Reliance
Retail is operating a connected store concept providing
anytime, anywhere, any device seamless customer
experience. This provides an omni-commerce, omni-
presence reach to Reliance Retail. In order to enhance
this reach and augment customer experience, more
initiatives are being planned, which will be rolled out in a
phased manner.
Leveraging technology, data and insights across
the value chain for agility and transformation
Today, the Indian consumers, especially the millennial,
are becoming connected, digital-savvy, brand conscious
and quality oriented. Global retailers are leveraging
disruptive advanced technologies such as artificial
intelligence, automation, virtual/augmented reality,
robotics, big data analytics and internet of things
to offer experience & lifestyle-driven opportunities
to customers. Reliance Retail will be adopting next
generation technologies that is robust to handle ever-
increasing volumes, flexible to meet diverse customer
expectations and automation to improve productivity,
efficiency and agility.
Business Stewardship
Reliance Retail’s ethos and business principles reflect upon
a wide range of areas, which include health, safety, security,
environment and social impacts of its operations. It ensures
that its activities create societal impact and customer value
while deploying all its resources. Every year, Reliance Retail
executes a large number of social initiatives, and below are a
few highlights of the year:
• People with disabilities are usually denied jobs in India.
However, Reliance Retail trained and recruited 475 specially
abled people during the year. As on 31st March, 2018, Reliance
Retail employed 793 specially abled employees. Each of
these employees are valued and RIL sees lowest attrition
among these employees.
• Many of RIL’s employees are first time wage earners for their
family, thus providing them means of living. Reliance Retail
provides valuable training, nurtures them to advance their
skills and makes them a useful asset to the organisation.
• Reliance Retail was awarded contract through a tender
process to support Fair Price Shops across 10 districts of
Andhra Pradesh covering 5,000+ shops. This is a voluntary
program facilitated by the government of Andhra Pradesh.
Reliance Retail has signed up over 700 fair price shops and
operationalised 41 Fair Price Shops during the year, providing
~400 SKUs across staples, food, home and personal care and
much more ensuring that quality and affordable products
reach common man of the state, thereby sharing value
with society. Further, each of the prospective sign up shops
and supply chain thereof will need to be manned, creating
employment opportunities in the region.
• Reliance Trends’ leadership in India’s fashion apparel
is backed by its Make in India commitment. Reliance
Retail works closely with over 250 vendors across India,
providing them committed volumes, education on modern
manufacturing techniques and support to enhance
productivity and quality.
Reliance Retail in association with Reliance Foundation has
carried out numerous other initiatives contributing towards
rural development and promoting livelihood development
projects. With a people strength of over 90,000, it is a leading
employer among organised retailers in India, making it the
employer of choice.
Reliance Digital
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85
Diversity & Inclusion: Changing societal perspective
To encourage inclusion of
specially abled, Reliance Retail
has explored and mapped
specific job roles which can
be done effectively by them.
This in turn has helped them
earn respect and reputation
in the society. Community
openly acknowledges that it is
beneficial for business to hire
them as on-ground evidence
suggests that employing
such talent helps in managing
rising attrition, create a loyal
workforce, and improve morale
of the employees.
Reliance Market
Integrated Annual Report 2017–18Management’s Discussion and Analysis 86
Digital Services
The Group’s digital communications and services initiatives under Jio umbrella
brand have captured unprecedented adoption and recognition not only in India,
but also world over. The flagship digital communications and services company
Reliance Jio Infocomm Limited (‘RJIL’ or ‘Jio’ or ‘Reliance Jio’) is ranked 17th
amongst the Top 50 Most Innovative Companies in the world & is India’s Top
Most Innovative Company by Fast Company.
Since starting operations in September, 2016, Reliance Jio has been 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 services ecosystem. Reliance Jio is the largest mobile network in the world in terms of mobile data traffic with total
mobile data consumption of over 5 Exabyte in the financial quarter ending March 2018.
Reliance Jio has been not only pioneering but also has been a key catalyst in the creation and growth of wireless broadband
data market in India. With its Pan-India presence, Reliance Jio has attained wireless data leadership position in the industry
that is capable of delivering unmatched customer experience at a scale comparable to none. Jio continues to co-create
digital eco-system and expand its network with a coverage target of 99% of India’s population. Jio reiterates its 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.
186.6 million subscribers
Reliance Jio, the fastest growing digital
technology and communications Company
Strategy and vision
Jio’s strategy and vision are pivoted around Digital India and its key value propositions on
commencement of services are affordable, high quality and abundant data; connected intelligence;
smart, simple and secure services; and bringing people together.
Coverage
Data
Quality
Affordability
Coverage refers to anytime,
anywhere mobile and
wireline broadband access,
backed by the largest
network of 4G spectrum,
tower and fiber assets, thus
providing farthest reach and
access to every Indian.
Jio’s resilient network is
engineered to provide
minimum capacity of over
10 GB per month for every
Indian.
Jio’s mobile consumers
already consume on an
average ~10GB per month.
This is the largest per capita
mobile consumption in the
world.
Jio’s all IP network and
superior Long Term
Evolution (LTE) based
network is backed by world-
class customer service and
quality, and adoption of
latest self-care and digital
app platforms including next
generation customer care
Bots.
Jio’s next generation
network is built at an
extremely efficient cost
base coupled with significant
technology driven operating
efficiencies, which enable
it to offer services at a
substantially lower cost than
others along with host of
other value added services.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 87
Sanjay
Mashruwala
Mathew
Oommen
Pankaj Pawar
Kiran Thomas
Harish Shah
Jyotindra
Thacker
Jagbir Singh
Anish Shah
Anshuman
Thakur
Rajneesh Jain
V Sridhar
Market Environment and Outlook
Globally, humans are using digital devices and services
to augment and enhance their life experience – be this in
communication, entertainment, information, education
health, buying/commerce, sharing or streaming events via
their phones, on ever faster mobile networks. The pace and
reach of this is likely to get faster exponentially.
The majority of voice calls have already moved to next
generation mobile network at almost negligible cost coupled
with rich communication services and plethora of infotainment
and commerce applications. Now, it is the turn of home and
wireless broadband convergence to drive an all pervasive
Internet of Things (IoT) and fully enabled digital life.
Digitisation and data consumption in India were 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. Government’s
strong policy framework and push towards ‘Digital India’
have immensely helped in accelerating the shift towards
digital economy and society.
FY 2017-18 witnessed several important and transformative
changes in the Industry. The industry is going through
a major consolidation phase through mergers or sale of
businesses and from earlier 8 plus players is heading towards
a 3 to 4 player market.
Telecom Regulatory Authority of India (TRAI) has set a
definitive path towards eliminating Interconnect Usage
Charges (IUC) by 2020, while reducing the extant charge of 14
paise per minute to 6 paise per minute. This not only removes
the artificial tariff hurdle with floor price but also allows
faster adoption of more efficient technologies like VoLTE, as
erstwhile legacy networks are nearing obsolescence. This,
along with reduction in international calling terminal rates
to 30 paise per minute from earlier 53 paise per minute, is
beneficial for the end customer, while promoting technology
and services which have almost negligible cost for carrying
and servicing essential services like voice.
This is also a clear indication of the industry’s maturity
and sets a clear forward path enabling quick adoption and
implementation of digital technologies, which Jio has
been pioneering.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 88
Digital transformation across the value chain
India has become an epitome of digital transformation,
driven by various private and public initiatives. During the
last few years, technological advancement coupled with
transformative initiatives by Jio, is enabling availability of
affordable broad band internet plans. This has provided the
required impetus for increasing internet usage in India.
India currently has over ~450 million internet subscribers
(CAGR of ~42% over FY 2006), making it the second largest
online market in the world, ranked only behind China.
However, the overall internet penetration is still at 34%,
skewed in favour of urban India, which has ~76% internet
penetration. Rural India is still underpenetrated with only
15% penetration. With a total rural population of ~906
million, approximately 750 million users still do not
use internet.
Internet users in India –
Urban Rural divide, 2014-171 (in Million)
The above gap represents an opportunity of an at least ~150
million households, which are yet to be connected.
As per EIU forecast, Indian households have been witnessing
an upwards increase in their disposable income since the
last few years. Deloitte predicts that rising affluence of
households will lead to an increased demand for consumer
goods, entertainment systems, etc. which will further
drive demand for internet services. Hence, these untapped
households will represent the next wave for internet
growth in India.
Mobile Phone continues to be the preferred
primary device driving internet usage (in Million)
1
7
92
6
17
77
157
163
263
269
129
246
101
177
2014
2015
2016
2017 (Est)
Urban
Rural
Celebrating Digital Life
Rural
Urban
Mobile
Desktop/Laptop
Tablet
Even though the mobile industry’s contribution to the
country’s GDP currently stands at 6.5% (USD 140 billion)2,
Indian telecom industry hitherto had monolithic approach
towards consumer, with limited innovation or collaboration
that drives eco-system benefits to the end consumer.
Over the last few years, increase in internet penetration has
been driven mostly by availability of cheaper smartphones
or through narrow band wireless access. More than 92% of
rural users (substantially through limited wireless narrow
band access) and 77% urban users have been using mobile as
a primary device for accessing internet through cellular data
connections.
India would be leading the data revolution in the coming
years as the largely untapped market slowly gets included
into the realms of digital services.
1
Internet in India 2016 – An IAMAI & IMRB report, Deloitte-India 2018
Predictions
2 Deloitte Technology Media and Telecommunications Predictions- In-
dia 2018 Predictions
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 89
In early 2016, India became the second largest smartphone
market in the world, trailing China and overtaking the
US with about 250 million smartphone users. The
telecommunications market in India is characterised by
an urban-rural divide, which is manifested by an urban tele
density three times higher than that of rural. This explains
the high smartphone user concentration in urban cities and
an overall low smartphone penetration in the country. The
current smartphone penetration in the country stands at
as low as ~35%. The top 30 cities make up 51% of the entire
smartphone market in India.
With the increasing availability of affordable telecom
services and handsets in the market and the numerous
Government initiatives to connect the unconnected,
Deloitte predicts that India is poised to be at the forefront of
the global data revolution with the introduction of bundle-
based sales of smartphones with net effective price less than
US$ 25 and data rates at less than US$ 1 per GB.
The “smart feature phones” introduced by Reliance Retail
(Reliance’s retail initiative to bridge the digital divide gap)
in the market proved to be a game changer. These phones
would potentially bridge the digital divide by reaching out
to the bottom of the pyramid with several data-driven
functionalities bundled into the devices.
Jio leading from front
Robust
Demand
World’s 2nd largest telecommunications market 1.191 billion subscribers
70% of population lives in non-metro, non-urban areas and not fully data enabled
Increasing consumption of data and media on mobile networks
Attractive
Opportunities
Rural teledensity 56.66
2nd largest internet market globally
GoI launches Digital India program
Education, healthcare, retail, etc., will be connected through internet
Advantage India
Policy
Support
Proactive efforts to transform India into a global telecommunications hub
Prudent regulatory support
New National Telecom Policy 2018 to set the tone for full digitisation path.
Growing
Middle Class
Young population, increasing disposable income
Quick adoption to digital life
~750 million internet users by 2020
Since Jio’s transformative entry and collaborative approach
across the value chain, the industry is steadily moving
towards a converged and value added bundled services
approach.
Jio-Integrated digital services franchise
Seamless converged coverage and abundant capacity
Reliance Jio has built India’s largest a next generation all-IP
data network with latest 4G LTE technology. It is the only
network built as a Mobile Video Network and providing Voice
over LTE (VoLTE) technology. It has built a future ready
network which can easily deploy 5G and beyond technology
in the last leg. Jio has created an ecosystem comprising
network, devices, applications and content, service
experience and affordable tariffs for everyone to live the Jio
Digital Life.
spectrum footprint across frequency bands provides
significant network capacity and deep in-building coverage.
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 all the 22 circles
with an average life of over 15 years. All of this spectrum is
liberalised and can be used for rolling out any technology.
Jio’s next generation network is amongst the best in the
world. The network has advance 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. The Company
has filed 68 patents for the path-breaking initiatives it has
undertaken.
Spectrum and network
Jio’s network is engineered for seamless service delivery
using LTE technology in 800 MHz, 1800 MHz and 2300 MHz
bands through an integrated ecosystem. The combined
Jio is one of the largest network operators in the country
where the coverage is at par with 2G coverage of existing
operators. By far, Jio has the largest LTE coverage in India
and is targeting 99% coverage of the country’s population.
Integrated Annual Report 2017–18Management’s Discussion and Analysis
90
In anticipation of the latent and untapped data and digital
services demand, Jio has built a strong data network with
world-class infrastructure and fiber backhaul for offering
wireless services, wireline services, FTTH, Enterprise
offerings, IoT services and other digital services.
Reliance Jio also signed definitive agreement for the
acquisition of specified assets of Reliance Communications
Limited (‘RCOM’) and its affiliates. The acquisition is subject
to receipt of requisite approvals from Governmental and
regulatory authorities, consents from all lenders, release of
all encumbrances on the said assets and other conditions
precedent. The consideration is payable at completion and is
subject to adjustments as specified in the agreement.
This acquisition, when completed, would bring synergies
while adding to Jio’s network infrastructure asset portfolio
across spectrum, tower and optical fiber.
Superior Network Quality
• Continued expansion of 4G network coverage and further
deepening in existing areas to achieve 99% population
coverage during 2018
• Only network to deploy Pan-India 4G across the 800MHz/
1800MHz/ 2300MHz bands
• World’s largest mobile data consumption network
• World’s largest VOLTE network
• Ranked fastest network over last 15 months by TRAI’s
MySpeed Analytics app (average download speed of 17.9
Mbps during March 2018, as per TRAI)
• Lowest call drop rate; 100% network availability
Jio Digital Vision
Most affordable data in the world – ensuring
access to the common man
Data costs less than `50/GB
Connectivity for every Indian – with bouquet
of digital services
Affordable devices with data connectivity and
applications
High quality data uninterrupted and high speed
data access anywhere, anytime
High speed video ready network
One of the widest reaching
networks globally – spread across cities and villages
To cover >99% of India’s population
Largest Distribution and Service Network
• Continuous enablement of distribution channel through
latest technology enabled platforms and services
• Pan-India distribution channel with over 1 million retailers
• Rapidly growing base of digital outlets and
• Jio Points in partnership with Reliance Retail as master
distributor
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. To bridge the digital divide
gap and to enable access to affordable high speed mobile
data to the hitherto unserved ~500 million plus feature
phone and the unconnected market, Jio has partnered with
Reliance Retail in launching a smart feature phone ‘JioPhone’
catering to this untapped market. This initiative has been
hugely popular with unprecedented demand and adoption.
Jio continues to work with various OEMs’, ODMs’ and other
eco system partners to further innovative and cost effective
devices and solutions at affordable rates to accelerate
adoption and cater digital services to the unserved.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice Jio – Integrated Digital Service Franchise
All-IP Network
Instant call connectivity, minimal call
drop, unmatched HD quality
Rich Capacity
Sufficient capacity for every user on
the network, at all times (combination
of fiber and spectrum)
Seamless Service experience
Seamless Voice, Video & Messaging
experience
91
Seamless In-building coverage
Superior indoor coverage using Macro
and Small cells, backed by Pan-India
FTTH roll out
Ubiquitous Coverage footprint
India’s largest LTE network deployment
with FDD and TDD spectrum (850/
1800/ 2300 Bands) with fiber backhaul
Superior Data experience
Sufficient throughput for the highest
end applications
Partnerships and new ventures
Jio, along with its 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.
To enhance capabilities on content, technology platforms
and applications space while leveraging group synergies,
a strategic transaction was announced for combination of
JioMusic with Saavn, a leading global music OTT platform, to
form India’s largest platform for music, media and artists.
To further digital initiatives into education space during the
year, a strategic investment and partnership was agreed
upon with Indiavidual Learning Pvt Ltd (“Embibe”), a leading
AI-based education platform leveraging data analytics to
deliver personalised learning outcomes to each student.
To bolster content during the year, a strategic partnership
with Eros Media was agreed upon to jointly set-up a `1,000
crore fund for production and acquisition of Indian films and
digital originals across all languages.
Jio, it’s affiliates and its business partners continue to invest,
innovate and enhance the digital ecosystem for bettering
and enriching customer experience, while ensuring tight
integration of devices, network infrastructure, platforms
and applications portfolio to ensure seamless experience to
customers.
Financial and operational performance.
Reliance Jio is the flagship digital communications and
services initiative of Reliance Industries Limited and
epicenter of Group’s digital revolution and transformation.
Realisation of this strategic vision is not only evident in the
unprecedented customer engagement metrics, but also in
the robust financial performance of Digital Services business
in very first year of it’s commercial operations.
Financial Performance
Gross Revenue
EBIT
EBIT%
FY 2017-18
(` in crore)
23,916
3,174
13.3%
FY 2017-18
(US$ in million)
3,669.5
487.0
Despite competitive pressures, Digital Services business
recorded revenues of `23,916 crore, with year-end
subscribers’ base at 186.6 million and Segment EBIT was at
`3,174 crore for the year, with EBIT margin of 13.3%. This
is strong financial performance within the very first year of
commercial operations, demonstrating strong fundamental
and operating leverage of the business.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 92
Jio continues to be the most popular wireless broadband
service provider in the country with its subscriber base
increasing at 186.6 million as on 31st March, 2018. Net
subscriber addition for the Company during FY 2017-18 was at
83 million with lowest churn in the industry at 0.25% per month.
Jio continues to set new benchmarks on various performance
parameters during the exit quarter for FY 2017-18:
• Industry leading ARPU @ INR 137 per month on a diversified
subscriber base.
(Only operator demonstrating business growth and growing
traction of digital life)
• Average voice consumption at 716 minutes per user per
month
(Highest per sub and traffic of 414 crore minutes per day)
• Average data consumption at 9.7 GB per user per month
(Amongst the highest average usage on mobile globally)
• Sustained 506 crore GB data consumption
(World’s largest and fastest growing mobile data network,
with >81% total industry 4G traffic)
• Average consumption of 13.8 hours of video consumption
per user per month
(Largest high quality video consumption network, with
>240 crore hours per month)
This unprecedented adoption and metrics during the year are
backed by:
• End-to-End 4G coverage at par with 2G coverage in the
country
• Transformation role in creating the Digital Eco-System in the
country
• Growing popularity of Jio digital services and applications
across the spectrum
• Customer friendly and most affordable tariffs across user
segments
• Continuing market expansion and customer engagement
through JioPrime
Full service Digital suite
Lifestyle Applications (app)
The Company’s all IP network apart from VoLTE driven high
quality voice calling from and to other telecom networks
is fully enabled and capable of delivering content focused
services. This capability to carry multimedia content,
including music and video offers a rich customer experience.
Jio also through its Group affiliates and partners has enabled
a rich suite of digital applications and tools which encompass
day to day needs including information, entertainment,
commerce and self-service tools.
Jio’s digital suite of applications are already amongst the
most popular in their respective categories and have won
various accolades.
• MyJio is the most popular self-care app with over 150 million
downloads and substantial additional features;
• Best network quality in the country
• JioTV is the best rated live and catch-up TV app;
• Lowest call drop at 0.14%
• Fastest down load speed at 17.9 Mbps
• 100% network availability since commencement of
operations
• JioCinema is the most popular video-on demand app;
Jio Dhan-Dhana-Dhan
Life is beautiful
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 93
Jio Apps
Jio
MyJio
JioTV
JioCinema
JioMusic
JioMags
JioXpressNews
JioChat
JioCloud
Jio4GVoice
JioMoney
JioSecurity
JioNewsPaper
JioNet
JioHealthHub
Jioswitch
JioGST
• Combination of JioMusic and Saavn has created a music
powerhouse forming India’s largest platform for music,
media & artists;
• JioMags and JioNews are other highly popular customer
offerings
• Jio’s KBC play along, a live tv interactive game, was one of it’s
kind and was hugely popular with peak concurrent user base
of 5 million participants engaged on the platform.
Outlook
Jio will continue to evaluate and deploy various technologies,
both wireless and wire line, to offer comprehensive
broadband solutions to consumers, small businesses,
enterprises, government and other entities, while building
and innovating on a full suite of digital services and
applications.
While Jio continues to march on its 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, Jio reiterates its vision
and ultimate goal of a full digital life style solution
provider to every Indian and making a meaningful social-
economic impact.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 94
Jio a complete digital lifestyle solution provider
Delay the Decline
Extend the peak
Move up the value chain in Digital Service
Voice
Messaging
Data Acess
Digital lifestyle solution provider
OTT/Digital
Service
Enabler
Utility
e
u
n
e
v
e
r
t
e
N
Source: Chetan Sharma Consulting
Subscriber Penetration
Reliance Jio – An integrated digital service company
Growth Engines
Network
JioPhone
FTTH
Enterprise
Digital Tech
4G LTE > 2G coverage
99% coverage by
Dec’18
More extensive fiber
network
Pan-India 4G- LTE
across 800/1800/2300
MHZ bands
Large addressable market
~500 million feature
phones in India
Affordable tariff plans
for new data users
Priming market for
growth
Untapped market
opportunity
Minimal wireline
broadband penetration
provides huge
opportunity
Fiber backbone in
place users
Enterprise connectivity
and suite of new
offerings
Affordable services for
SME segment
Large addressable market
Bouquet of media/OTT
content for customers
Exclusive partnership
to enhance the
platform
Opportunity to build
Jio Advertisement
platform
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice
Jio Subscribers as on 31st March, 2018
JAMMU AND
KASHMIR
2.27
HIMACHAL
PRADESH
1.96
PUNJAB
8.27
HARYANA
4.77
DELHI
10.84
RAJASTHAN
10.16
GUJARAT
13.20
MADHYA
PRADESH
11.61
MUMBAI
8.52
MAHARASHTRA
13.48
KARNATAKA
10.37
KERALA
5.50
95
N
ASSAM
3.53
NORTH-EAST
1.68
BIHAR
12.37
WEST BENGAL
7.16
KOLKATA
5.97
UTTAR
PRADESH (WEST)
9.54
UTTAR
PRADESH (EAST)
12.30
ODISHA
5.11
ANDHRA
PRADESH
15.44
TAMIL NADU
12.51
Legend
Circle
Number of subscribers in million
JioGST
Reliance successfully implemented GST with the first invoice being issued in the early hours of the 1st July, 2017. The
compliance system was developed in-house based on complete automation to achieve what Reliance called a ‘Driverless
GST’. A number of remarkable innovations were used to achieve this seamless and technology driven transition to
the new tax regime which included development and setting up an in-house GST Suvidha Provider as JioGST to serve
not only Group entities but also the larger tax community. A robotic system has also been developed in-house for
generation of E-way bills. Phase 1 of Driverless GST will be the lodestone and foundation for a future 100% touchless
system of IDT compliances in the next Phase. The innovations that have driven Driverless GST will also drive the next
wave of automation as Reliance moves to a comprehensive Financial Management System platform.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 96
Media and Entertainment
Network18’s widespread portfolio of media and digital commerce properties are
geared towards touching the daily lives of Indians across geographies, genres
and mediums. Network18 group’s core tenets of journalistic excellence, path-
breaking content creation and unparalleled reach are relentlessly pursued. The
consumer recall that its flagship brands enjoy are matched only by its ambition
to incubate and integrate better offerings, thereby growing the Network18
umbrella for the benefit of all stakeholders.
53
News & Entertainment
channels across India
Reliance is committed to provide Indian consumers world-
class media for entertainment, news and information across
platforms. Reliance media portfolio includes Network18
group and investment in partnerships to strengthen content
for Jio platforms.
Strategic advantages and competitive strength
RIL’s flagship media property Network18 is a media and
entertainment powerhouse with a robust foothold in
television broadcasting, movie production and distribution,
digital content and commerce, print magazines, mobile
content and allied media services businesses.
• One in every two Indians consume Network18’s content. Its
TV channels reach nearly 70 crore Indians, representing 90%
of the TV universe in the country.
• Network18 operates India’s broadest news network with
unmatched coverage through 20 channels spanning 15
languages and 26 states. (No. 1 News network by reach,
No. 2 News network by viewership)
• Network18 also owns the fastest growing entertainment
network in the country, with leadership channels in Hindi,
English, Kids and Music genres. (No. 3 Entertainment
network by viewership, in the non-sports space)
• Its digital properties are used by over 80 million people;
and one in every five internet user in India is on Network18
websites or apps.
Network18’s operating model is driven by its zeal to provide
consumers with 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
Network18 strives to
be channel-agnostic to
ensure its content reaches
seamlessly to consumers
through their platform
of choice. This approach
is increasingly relevant
considering the advent of
digital entertainment and
the splintering of
viewer-ship and engagement
across platforms.
Network18 is future-ready
with its relentless focus
on the identified axes of
growth: regional content and
digital delivery. This two-
pronged approach enables
the Company to reach its
audiences regardless of
geography, language or
demography.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 97
Rahul Joshi
Sudhanshu Vats
Jyoti Deshpande
Hindi News channel News18 India rose to No. 3 spot over
the year, and regularly beats the market leader in urban
primetime in a highly competitive and fast-growing genre.
Thought
leadership
Network
synergy
Strategic
collaborations
Brand
excellence
Network18 is steered
by a professional and
experienced team that helps
it to consistently strive to
host thought leadership on-
air, online and on-ground.
It is deriving leadership not
only through consumption
numbers, but also by
facilitating the development
of new ideas and emerging
thought processes.
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, enabling
enhanced advertising
and subscription revenue
generation.
Network18 has a track
record of building successful
strategic alliances with
international media
companies 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.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 98
Market Environment
During the first half of FY 2017-18, India’s Media and
entertainment (M&E) sector encountered substantial
headwinds due to short-term impact from implementation
of tax reforms. In the second half, the industry gathered
momentum owing to a sharp revival led by robust underlying
content-consumption trends. The pullback in advertising
spends in first half dragged down ad-growth for the year to
3%, but the market is well on its way to recovery heading into
FY 2018-19 (Source: EY-FICCI Frames report, 2018).
India’s M&E industry is expected to grow at an 11.6% CAGR
to reach `2,032 billion by 2020, from its estimated size of
`1,306 billion in 2016 (Source: EY-FICCI Frames report,
2018). This growth will be driven by India’s need for escapism,
knowledge and social acceptance.
Growth drivers
1)
Recovery in economic growth, reforms, and resultant
socio-economic upliftment: Advertising contributes
to the bulk of M&E sector revenues in India. It is largely
influenced by the broader economic cycle, and a revival
post two years of weak ad-spends led by macro-events.
2)
TV viewership continues to grow at a fast clip, despite
the advent of digital: India’s TV content consumption
is on a rise, led by demographic/socio-economic
tailwinds (as measured by BARC), despite the advent of
Digital content. Thus, the conclusion is that Digital is
complementary and not cannibalistic to TV’s content in
India today. Moreover, TV penetration in India reached
64%, taking the total number of TV viewing household
to 183 million in 2017 (recording a 3.5% growth over the
previous year).
Size & Growth CAGR of M&E segments
11.6
1308
2032
24.9
92
224
Digital
M&E Industry
9.8
594
862
TV
2016
2020
CAGR
7.5 mn+ towns
1-7.5 mn+ towns
0.1-1 mn+ towns
<0.1 mn+ towns
Rural
All India
TV owning
Households (mn)
20
19
22
24
99
183
TV
Penetration
94%
91%
87%
79%
52%
64%
3)
4)
Segmentation of market from a genre, geography and
pricing perspective: Content providers are creating new
channels across genres. They are incubating segmented
offerings for catering to a certain demographic, and
digging deeper into attracting regional eyeballs through
vernacular content; thereby expanding the market itself.
Digital as a new medium of personalised and
untethered content consumption: The rapid
advancement in telecom technology, especially 4G
services, coupled with slashed data costs due to
Moneycontrol: Leapfrogging leadership
position – union budget analysis
Action Taken:
• Created uniform budget
section experience
across platforms on
moneycontrol with live
blog, video interviews and
expert analysis
• Use of infographics,
slideshows trivia,
podcasts and stand-up
comedy events
• Budget Chatbot for users
to interact in a new way
• 1 million concurrent users
on mobile app (300%
growth)
Outcome: Enhanced
customer experience and
real time concurrent users
reflected in higher revenues.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 99
5)
6)
7)
competition has created a completely new channel of
content consumption through handheld devices.
Free-To-Air (FTA) channels as a low-cost entry-
point for a vast multitude of Indians: FTA channels
resonate with a large Indian population who do not have
the capacity to pay for content. FTA channels have
grown rapidly over the last couple of years led by BARC
measuring rural content consumption and creating an
untapped advertising market.
Regional content consumption gaining strength:
Data from BARC indicates that growth in content
consumption in languages like Punjabi, Oriya, Bhojpuri,
Assamese and Gujarati is almost twice the rate of growth
of languages like Hindi, Tamil, Telugu and others.
Digitisation – ‘See your customer’: With the
introduction of digitisation, the revenue dynamics of
content distribution have changed. Due to enhanced
transparency at the local cable operator level, multi-
system operators (distributor aggregators) and
broadcasters have gained.
Financial and operational performance
Financial Overview
Particulars
Revenues
EBIT
FY 2017-18
(` in crore)
1,839
(25)
FY 2016-17
(` in crore)
1,491
(201)
% Change
y-o-y
23.3%
Network18 consolidated its operations and continued
to enhance its prominence in the M&E sector during a
challenging year for the industry. The M&E segment
witnessed a short-term pull-back in advertising spends on
account of structural reforms like implementation of Goods
and Services Tax (GST). This influenced advertising revenue
early in the year, but the impact waned off by the end of
the fiscal, triggering a sharp revival. Telecom Regulatory
Authority of India’s (TRAI) tariff order on a-la-carte selling of
channels remained sub-judice, which added to the pressures
of FTA channels and Digital platforms on the TV subscription
business. However, macro tailwinds like a recovering
economy, growing TV consumption and cable digitisation
remain intact. In such an industry landscape, despite
competitive pressures Network18 reported revenues worth
`1,839 crore and EBIT of `(25) crore on a consolidated basis.
The sharp revenue escalation is led by the impact of
subsidiary TV18 acquiring control of entertainment JV
Viacom18, partly offset by HomeShop18 ceasing to be a
subsidiary due to its share-swap acquisition of ShopCJ
during the last quarter of the fiscal. On a comparable
basis (by consolidating Viacom18 and deconsolidating
HomeShop18 throughout), Network18 revenue rose 16%
in FY 2017-18 to `5,027 crore. Comparable (restated) EBIT
also rose to `84 crore, compared to `(46) crore last fiscal,
led by reduction in losses in home-shopping, a stellar year
for movie production, and gains on fair valuation of financial
assets.
Movies by Viacom18
Integrated Annual Report 2017–18Management’s Discussion and Analysis Film business
Film business
Digital business
Digital Content includes Moneycontrol.com (leader in the
finance category), Firstpost.com (India’s first and the biggest
digital-only newsroom), VOOT (No. 2 broadcast OTT in the
country) and News18.com (digital destination for all general
News).
Highlights for the year: VOOT was rated amongst the top five
video-streaming apps according to App Annie, and also won
the IBC2017 Innovation Award.
100
Operational overview
Television business
News
Entertainment
Business News constitutes CNBC
TV18 and CNBC Awaaz, No. 1
in English and Hindi business
news genre, respectively, and
CNBC Bajar, India’s first Gujarati
business news channel.
Highlights of the year: CNBC
TV18 garnered 79% market-share
during the broadcast of the Union
Budget. Also, during the budget
speech, market share of CNBC
TV18 was higher than all English
News channels put together.
Hindi General Entertainment includes flagship general entertainment channel (GEC) Colors,
FTA GEC Rishtey, and FTA Hindi movie channel Rishtey Cineplex.
Highlights of the year: Colors continues to be a strong leader in urban markets and Rishtey
Cineplex has broken even within 1.5 years of its launch.
Film business includes Viacom18 Motion Pictures.
Highlights for the year: Worldwide release of Padmaavat and
Toilet – Ek Prem Katha, both of which have left an indelible
footprint on the box office.
Youth and Music includes MTV India, the No. 1 youth brand, and 24x7 Bollywood music channel
MTV Beats
Highlights of the year: MTV Beats is the fastest growing music channel in the country.
General News includes CNN-
News18 and News18 India.
English Entertainment has VH1, Comedy Central (India’s first 24-hour English comedy
channel) and Colors Infinity.
Highlights of the year: News18
India has successfully moved to
the fourth position in a highly
fragmented genre. Also, it
consistently remains a leader
during mega prime time with a
16.3% market share in urban/
metros.
Highlights of the year: While Comedy Central is the top-ranked English Entertainment
Channel, the English Cluster comprising Comedy Central, Colors Infinity and VH1 combined
control nearly 60% share of the English Entertainment space
Kids Entertainment constitutes of Nickelodeon, the No. 1 channel in Kids category, Sonic,
Nick Jr./Teen Nick and Nick HD+.
Highlights of the year: Nickelodeon’s School Contact Programme reached out to nearly 850
schools across India’s multiple cities.
Digital Commerce includes HomeShop18 and Bookmyshow.
Highlights for the year: Bookmyshow entered live business to
scale growth and diversify its revenue streams. It successfully
organised the prestigious Ed Sheeran concert in Mumbai in
November 2017.
Regional News includes News18
Channels (including erstwhile ETV
channels) and News18 Lokmat.
Highlights of the year: The
market share of News18 regional
channels have grown from 2.5% in
late-2016 to 4.5% currently.
Regional Entertainment: The regional entertainment bouquet of Colors in Kannada, Bangla,
Marathi, Gujarati and Oriya continues to entertain, educate and enthrall regional viewers
through innovative and rooted content. Colors Kannada and Colors Gujarati are market
leaders, while Colors Marathi and Colors Bangla have significantly grown in ratings.
Highlight of the year: Colors Tamil was launched as the seventh regional GEC, in the largest
vernacular market. Amidst high competition, its impactful programming has succeeded in
carving 5% viewership share within a month of launch.
Print/publication business
Print/publication business has a portfolio of highly reputed
magazines comprising Forbes India, Overdrive, Better
Photography and Better Interiors.
Highlights of the year: Successfully executed India’s most
prestigious “Forbes India Leadership Award”.
Infotainment has a factual entertainment channel History TV18 and a lifestyle channel fyiTV18.
Highlights for the year: History TV18 HD was launched on 1st September and was the No. 1
factual entertainment HD channel across India in the first 2 weeks of its launch.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice
Operational overview
Television business
101
Film business
Film business
Film business includes Viacom18 Motion Pictures.
Highlights for the year: Worldwide release of Padmaavat and
Toilet – Ek Prem Katha, both of which have left an indelible
footprint on the box office.
Digital business
Digital Content includes Moneycontrol.com (leader in the
finance category), Firstpost.com (India’s first and the biggest
digital-only newsroom), VOOT (No. 2 broadcast OTT in the
country) and News18.com (digital destination for all general
News).
Highlights for the year: VOOT was rated amongst the top five
video-streaming apps according to App Annie, and also won
the IBC2017 Innovation Award.
Digital Commerce includes HomeShop18 and Bookmyshow.
Highlights for the year: Bookmyshow entered live business to
scale growth and diversify its revenue streams. It successfully
organised the prestigious Ed Sheeran concert in Mumbai in
November 2017.
Print/publication business
Print/publication business has a portfolio of highly reputed
magazines comprising Forbes India, Overdrive, Better
Photography and Better Interiors.
Highlights of the year: Successfully executed India’s most
prestigious “Forbes India Leadership Award”.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 102
Innovation
Moneycontrol has introduced various innovative delivery
methods like live streaming, podcasts, video-on-demand
and so on. Besides, Moneycontrol is now truly an on-the-
move destination with the availability of its app on smart
watches as well. With an ad-free paid app being launched,
Moneycontrol now truly reaches a premium customer base
with a more refined offering.
News18.com, besides being available in nine Indian
languages, continued its focus on intense editorial and
product innovation. The platform consistently offered rich
data driven election coverage. The successful REEL awards
showcased its ability to diversify its revenue steam, while
differentiating itself from competition.
Firstpost has further diversified its offerings through the
launch of FirstCricket (a one-stop destination for cricket
enthusiasts) and ShowSha.com (an integrated entertainment
and cultural destination).
VOOT’s PWA (Progressive Web App) is a class-leading tech
innovation, where Network18 worked closely with Google
engineers to create a mobile-website, which provides an app
experience even through a browser. This opens up the target
market to beyond smartphones and even include feature
phones (which still dominate India’s telecom landscape), as
apps cannot be used in earlier generation feature phones.
Risks
Regulatory changes: The TRAI tariff order on a-la-carte
sale of channels could change the subscription business
model substantially, thereby ushering a period of flux for
the industry as all participants adjust. It could create both
opportunities and challenges.
Digital investments: The digital content and digital
commerce businesses do not have a settled monetisation
model today. Substantial investments by international and
domestic players to capture the Indian market are leading to
cash-burn. This scenario may turn into a drag on profitability
for some time.
Outlook
Network18’s growth aspirations stem from an inherently
high-quality portfolio of properties, a relentless drive
for garnering market-share, and a concerted effort to
utilise synergies and push efficiencies across its owned
and affiliate media (traditional and digital) and telecom
portfolio. The Company believes that India’s M&E sector
is poised for substantial growth, as the segment steadily
gains international stature in terms of both advertising and
consumer spends.
These growth aspirations represent the principal inspiration
behind the following strategic moves during the year.
Lessons in Leadership with Satya Nadella
Mr. Narendra Modi at the News18 Rising India Summit
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 103
Network18 subsidiary TV18 took operational control and
raised its stake to 51% in entertainment JV Viacom18
(March 2018). The partners believe that in India’s fast-
evolving M&E landscape, TV18 can drive value-addition
and synergies across the multi-platform group, comprising
broadcast, digital, filmed and experiential entertainment
and media businesses. Viacom continues to hold 49% in
Viacom18, and shares TV18’s vision for scalability and
enhanced efficiency at Viacom18. Viacom18 is now a
subsidiary of TV18.
Leading TV shopping players HomeShop18 and Shop CJ
combined their businesses (February 2018), creating the
largest home-shopping entity in India under HomeShop18’s
umbrella. The ensuing benefits of scale and synergy
will improve growth prospects for the combined entity,
allowing it to enhance its standing in the TV home-shopping
landscape and compete better with the challenge from
e-commerce. HomeShop18 ceases to be a subsidiary of
Network18, but Network18 remains its largest shareholder.
Umbrella brand ‘News18’ for all general News channels:
With the rebranding of the remaining five ETV and IBN
Lokmat regional channels, the process of having a unified
brand ‘News18’ for all 17 (including 1 international) general
news channels (in 15 languages covering 26 states) is
complete. This makes the News18 network India’s largest
general news brand.
Colors Tamil’s mid-February launch fills a vital whitespace
in Network18’s regional entertainment portfolio, in a highly
competitive market. Its refreshing subjects and cinematic-
quality content are being well received by the audience. The
channel launched with 22 hours of original programming per
month and will ramp-up its content and improve distribution
over the year. It has garnered 5% viewership share and made
strong inroads into urban markets like Chennai.
CNBC TV18’s digital destination CNBCTV18.com/CNBCTV18
app launched on 6th April, 2018. This is a premium digital
platform offering important and useful news and information
about the stock market, business and economy, including fresh
perspectives on entrepreneurship and leadership to audiences.
It also offers video feed/clips of the channel.
Business Stewardship
Network18, the premier media company of Reliance Group,
seeks to transform people’s lives by promoting health,
education and sports. During 2017-18, CNN News18 did a
socially-relevant sting operation to expose the menace of
drug peddling and addiction in Punjab and Delhi. News18 India
channel broadcast special stories to bring out the reality of
government hospitals in Uttar Pradesh, the plight of Muslim
women unsuccessfully seeking a divorce under Triple Talaq
etc. In the financial year 2017-18, the company supported the
“Young Champs” sports initiative aimed at providing training
to sportspersons, Dhirubhai Ambani Scholarships programme
and Health Outreach Program in Mumbai through Reliance
Foundation.
Raising awareness about real-world problems through News
Integrated Annual Report 2017–18Management’s Discussion and Analysis 104
Liquidity and Capital Resources
Srikanth
Venkatachari
Soumyo Dutta
Reliance manages its liquidity and funding risk by diversifying its resource base and tapping new investor pools across
different markets. It uses a judicious mix of currencies, tenors and product types in its liability suite. Reliance Treasury has
been able to deliver value by continuously reducing the spread over the benchmark rate at which it raises funding from
international markets. Reliance, in partnership with various banks and financial institutions, continues to explore and
deploy innovative financing solutions. Today, it is the most active Indian corporation in tapping the ECA financing route that
offer credit for longer tenures at extremely competitive rates. Tight management of cash to cash cycle by extending the
payables and bringing forward the receivables has ensured optimum use of debt for funding of working capital by its various
businesses. Reliance continues to enjoy a strong credit rating and is currently rated two notches above sovereign by S&P and
at par with sovereign by Moody’s.
Financing Strategy
Reliance has over the last few years successfully executed
the largest investment cycle in its corporate history. To
meet funding requirements, Reliance’s dedicated treasury
management team uses unique and innovative financial
instruments and structures to help de-risk projects from a
financing viewpoint. The team has successfully identified
key emerging trends and structured tailor-made “first-in-
market” financing solutions to raise resources at competitive
costs.
As part of its liability management exercise, during
FY 2017-18, Reliance successfully refinanced long- term
financing of US$1 billion equivalent syndicated loan. This
syndicated loan witnessed participation from 20 banks. In
addition, Reliance also re-priced US$350 million bilateral loan
resulting in savings in interest cost over the life of the facility.
As part of its ongoing liability management exercise, during
FY 2017-18, Reliance priced rule 144A/Regulation S offering
Through prudent financial
discipline, Reliance has
maintained judicious mix
of funding sources across
instrument classes, financing
products, financial markets and
investor classes.
Issued unsecured notes of
US$ 800 million at 3.667%, lowest ever
coupon achieved by an Indian corporate
of US$800 million 3.667% Senior
Unsecured Notes due 2027. This was
the lowest coupon ever achieved
by an Indian corporate for a 10-year
issuance, the tightest ever spread
over US Treasury for an Indian entity
for a 10-year issuance as well as
the tightest ever spread over US
Treasury for a 10 year BBB corporate
Reliance maintains strong relationships with more than 100
banks and financial institutions. It has also built relationships
with 14 Export Credit Agencies (ECA) globally – the highest
number for any corporate in the world. This, along with its
exceptional credit profile and high quality credit rating,
strengthens its ability to raise long-term resources from
global financial markets at very competitive rates.
issuance from Asia (ex-Japan) since, global financial crises.
The Notes were oversubscribed 1.6 times across 90
accounts.
The proceeds of these Notes were used to redeem the
outstanding US$ 800 million 5.875% senior perpetual fixed
rate unsecured notes.
Reliance actively explores opportunities to optimise the cost
of borrowing and align the maturity profile of its existing debt
portfolio with the group’s business strategy.
RIL also issued non-convertible debentures aggregating to
`20,000 crore in the Indian capital markets.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 105
Financing in Subsidiaries
During FY 2017-18, Reliance Jio Infocomm Limited (RJIL)
successfully refinanced long-term syndicated loans
aggregating US$1.5 billion, resulting in substantial interest
savings over the life of these loans. This deal saw an initial
response from 17 banks and was further syndicated to
additional 12 banks taking the total number to 29 banks.
RJIL also re-priced a part of its outstanding ECA facility
guaranteed by The Export-Import Bank of Korea (“K-EXIM”)
and funded by non-Korean commercial banks to the tune of
US$261 million, achieving significant savings in interest cost
over the life of this facility.
Capital Resources
During FY 2017-18, Reliance and its subsidiaries tied up
facilities across various financing products and maturities.
The table below shows debt levels for the year ended March,
2018 and March, 2017 for Reliance on a consolidated basis.
Particulars
Cash and marketable securities
Gross debt
Net debt
31st
March, 2018
78,063
2,18,763
1,40,700
(` in crore)
31st
March, 2017
77,226
1,96,599
1,19,373
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.
Liquidity and Treasury Management
Reliance has a strong focus on liquidity and maintains a
robust cash position to ensure the group has adequate cover
to respond to potential short term market illiquidity.
Reliance’s liquidity and borrowing plans are established
within the context of its annual financial and strategic
planning processes. Cash generated through operating
activities remains the primary source for liquidity along with
undrawn borrowing facilities and levels of cash and cash
equivalents.
Reliance believes that the group has sufficient working
capital resource for foreseeable requirements. It
continuously monitors and optimises its working capital
requirements by leveraging diverse trade financing solutions
covering receivable and payable cycles and executing
innovative structured trade products.
Reliance has a well diversified investments portfolio which
assures liquidity and steady returns across different market
environments. An efficient allocation of the portfolio across
various asset classes ensures the most optimum risk-returns
combination for the portfolio. A constant review, careful and
swift calibration of duration of the 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.
The risk management and investment process is regularly
reviewed to refine the processes and incorporate evolving
best practices.
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
International Debt
International Debt
Long-Term Debt
Long-Term Debt
Remarks
Two notches above India’s sovereign Rating
At par with India’s sovereign Rating
Highest rating awarded by CRISIL
Highest rating awarded by India Rating
Rating Agency
S&P
Moody’s
CRISIL
India Rating
Rating
BBB+
Baa2
CRISIL AAA
Ind AAA
Outlook
Stable
Stable
Stable
Stable
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 obligations. Such instruments carry lowest credit risk.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 106
Sustainable Growth at Reliance -
The Integrated Approach
The need to integrate and effectively manage
environmental, financial and social considerations with
business decisions is at the core of Reliance’s value system.
The Company’s business strategy has been highly optimised
to manage risks using four key enablers that reinforce the
Company’s fundamental philosophy – ‘Growth is Life’. The
four enablers are:
A) Strategic Framework
B) The Integrated Approach
C) Risk and Governance
D) Digital Platform
A) Strategic Framework
Reliance’s Strategic Framework sets out its strategy,
financial and risk management framework and
establishes its overarching goals. The expectations
and boundaries within which each of the Company’s
businesses must operate are outlined in the Framework.
It provides guidance to both current and new businesses
in the Group by setting effective business objectives
for each. Reliance drives growth, value, innovation and
societal transformation by leveraging its knowledge
and asset bases, as well as by investing in strategic
opportunities.
Reliance’s Strategic Framework can be divided into three
pillars: Approach, Value Creation and Enablers
B) The Integrated Approach
Reliance acknowledges the interdependence of business
impacts in strengthening its value creation model.
Consequently, the Company has adopted the six capitals
postulated by the International Integrated Reporting
Council’s (IIRC) Integrated Reporting Framework to
measure and showcase its performance:
1) Natural capital
2) Human capital
3)
Intellectual capital
4) Manufactured capital
5) Financial capital
6)
Social and Relationship capital
RIL creates long-term stakeholder value by integrating
the six capital approach with its activities and
processes. The Company takes a holistic view of the
inter-relatedness of these six capitals to enhance value
creation. This is achieved by ushering in higher level
of efficiencies by incorporating a lean management
structure helping the Company maximise returns with
minimal impacts. RIL is conscious of how its internal
strategies and policies interact with the external
variables affecting the business. To support the
business model, RIL has put in place effective systems
such as the Reliance Management System and
Enterprise Risk Management Framework while
leveraging digital technology.
C) Risk and Governance
Reliance recognises that effective risk management
is crucial to its continued profitability and long-term
sustainability of its businesses. The infrastructure for
risk and governance activities at Reliance comprise of
the Enterprise Risk Management (ERM) framework.
The ERM framework identifies, evaluates, manages and
reports risks arising from the Company’s operations.
ERM enables Reliance to manage its risks within
acceptable limits by using risk mitigation techniques and
allocating necessary resources.
D) Digital Platform
Taking RMS journey forward and to create an agile and
responsive organization, Reliance embarked on its
Digital Platforms Journey in 2018. The move to Digital
Platforms enables the Group to evolve the Reliance
Management System (RMS) to the next level.
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Approach
Driving growth, value, inno-
vation 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 cater to the
needs of the large domestic market.
Reliance has a pre-eminent position
in the Indian market in the businesses
it operates in. 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.
Value Creation
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 the 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
Key Reflections
Businesses
• Integrated value chain - Complex
integration for unprecedented value
maximisation
• World’s largest Refinery complex at
Jamnagar
• A first-of-its-kind Refinery
• Off-Gas Cracker (ROGC) setup to
produce petrochemicals / polymers
from refinery off-gas
• Largest coke gasifier being
implemented as a part of RIL’s clean
fuel initiative
• Jio digital ecosystem - apps,
content, service experience and
affordable tariffs
• Reliance Retail: India’s largest
retailer delivering superior value to
its customers, suppliers and other
stakeholders
• Last mile retail and digital services
to the farthest reaches of the
country
• Network18: Unparalleled reach
with multilingual content across
platforms, genres, geographies and
social demographics
• VLECs shipping ethane from the
USA with lowest carbon footprint
globally
Know how – 4G lab to scale
R&D & Innovation
• Progress in Breakthrough
development of composites from
polymer
• Algae to oil platform
Product stewardship
• Nanomaterials & composites
• Future generation fabric
• Free voice using VoLTE
• Future Ready 5G and beyond
Shareholder value
• *Dividend Recommended - `4,281 crore
• *Market Capitalisation – `5,59,223 crore
• 31.4% Market Capitalisation CAGR, since IPO
• *Maintained high RONW (adj.) of 15.5% (standalone)
Employee value
• Over 40% millenial representation at RIL
• R-Voice employee engagement survey, which happens
biennially, increased to 84% in 2016
• R-University: Driving employee learning and training
• *Imparted 57 lakh+ man-hours of training
Customer value
• 186.6 million Jio subscribers
• Average data consumption of 9.7 GB per user per month
on Jio during the exit quarter
• *Transforming India’s telecom landscape with a
compelling customer value proposition
• 7,573 Retail stores across 4,400+ cities
• *79% market share in CNBC TV18 during the annual
budget speech
• *Launched a range of future fabrics under the brand
R|Elan™
• Network18’s TV channels touch lives of 70 crore Indians:
1 in every 2 Indians is a consumer of the content
• Network18’s digital properties are used by 80 million+
people: 1 in 5 Indian internet users is on Network18
websites or apps
• Jio helped Indian consumer to save US$10 billion
annually
• Trans-connect - solution for fleet owners
Societal value
• 50 lakh+ employment generation, indirectly
• *`86,942 crore consolidated contribution to
national exchequer
• Reliance Foundation transformed lives of 20 million
Indians across 13,500+ villages and 100+ urban locations
• *`771 crore CSR expenditure for the year
107
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. Reliance
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. Along with judicial mix of
funding sources this ensures high capital
productivity.
Reliance is committed to conduct all
its initiatives with the highest levels of
integrity.
*Current year outcome
Safety and compliance
• Use of drones for safety
• 10 years of safe operations at E&P
Digital technologies
• Omnichannel initiatives in Reliance
Retail
• Mobile-based applications for fleet
management offerings
• Seamless acceptance of multiple
payment modes at petroleum retail
outlets
• Building scalable platforms across
businesses and functions
Capital productivity
• ROCE (adj.) for FY 2017-18 – 28.7%,
increase 330 bps y-o-y (standalone)
• *Substantial interest savings
from successful refinancing of
long-term loans
Operating efficiencies and
effectiveness
• Fuel retail throughput well above
industry average
• Anytime, anywhere uninterrupted
high-speed data access
Ethics
• Ethics and Compliance Task Force
oversees and monitors implementation
of ethical business practices
Integrated Annual Report 2017–18Management’s Discussion and Analysis 108
Natural Capital
Reliance lives by its vision of creating value through sustainable measures
and contributes towards cleaner air, cleaner water, preservation of flora
& fauna and enhancement of biodiversity. Every manufacturing location
works towards minimising its environmental footprint and endeavours to
be in harmony with the ecosystem.
2 crore+
7.3 crore+ m3
Saplings planted since inception
Rainwater harvesting capacity created
since inception
Key Performance Indicators
FY 2017-18
7.3 crore+ m3
2 crore+
3,004.0
Key Natural Capital Inputs
Rainwater harvesting capacity created since inception
Cumulative saplings planted since inception
Energy saved on account of conservation initiatives (‘000 GJ)
Key Natural Capital Outputs
Total water recycled (‘000 m3)
Solomon energy intensity index ranking places RIL refineries in top decile of performance
Jamnagar refineries have top decile Nelson Complexity Index (a metric for quantifying and ranking the complexity of refineries)
of 12.7. The complexity level of Jamnagar site is expected to improve significantly by several notches with the commissioning of
Jamnagar expansion projects
6,200 Ha of green belt developed, serving as a carbon sink
Jio has put highly efficient systems in place to ensure low carbon intensity per TB of data usage compared to other service providers
Environmental commitment beyond compliance
Key Natural Capital Outcomes
Cleaner air, cleaner water, cleaner soil & preserving flora and fauna & marine ecosystem
Diligent use of scarce resources with minimal environmental footprint and extracting more value from bottom of the barrel
production
FY 2016-17
5 crore+ m3
1.38 crore+
1,437.7
68,707
69,364
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Pawan
Kumar Kapil
Paramjit Singh
Across all sites, Natural capital considerations (air, water and soil) are integrated in RIL’s decision-making at all
stages: design stage, plant operation stage, equipment operation stage and above all, the way it deals with the
external world. Reliance has implemented effective governance mechanism at each manufacturing location
surpassing the legal obligations with respect to air quality, fresh water usage, soil use, impact on flora and fauna,
and marine footprint. Reliance works towards diligent use of scarce resources, extracting more value from bottom
of the barrel production and maximum GB of data per unit of emission. Reliance’s biggest super site is designed
to work without withdrawing a single drop of fresh water from lakes and other sources – through desalination of
sea water, thereby enabling communities to use the precious resources. RIL believes that timely and sufficient
availability of natural resources is imperative for continuity of its business operations and it is an obligation for any
industry towards all its stakeholders. RIL developed over 6,200 Ha of green belt, enriching ecological balance
and biodiversity.
United Nations’ Sustainable Development Goals
PMO’s initiatives supported by
the NITI Aayog:
• National Solar Mission
• National Policy on Bio-fuels
• National Environmental Policy
• National Plan for Conservation of Aquatic
Ecosystem
Key highlights of the year:
• 69,364 (‘000m3) water recycled
• 2 crore+ saplings planted since inception
• Continuous increase in rainwater
harvesting capacity since inception
Integrated Annual Report 2017–18Management’s Discussion and Analysis 110
Managing Natural Capital
Focus Area
Clean Air
Clean Water
Aspect
Philosophy
adopted
Reliance
differentiators
Going beyond
compliance for
stack emissions
by maximising
operational efficiency
Reduction of
emissions by using
eco-friendly fuels
Impact created
Emissions reduction
and recovery
Preventing Soil
Contamination
Preserving Flora and
Fauna
Diligent Use of
Scarce Resources
Minimum dependency
on freshwater
Zero discharge
Minimum waste
disposal
Zero-spill operations
In-situ preservation
of ecosystems
Optimisation
of resource
consumption
Desalination at
Jamnagar
High water recyclability
Water conservation
initiatives
Reduction in water
consumption
Increase in water
recyclability
Largest recycler of
PET bottles
Asia’s largest mango
orchard on arid land
Over 2 crore saplings
planted in greenbelt
Extracting more
value from
bottom-of-the-
barrel production
Increase in waste
recyclability
Greenbelt
development
Habitat restoration
Increase in
operational
efficiency of
refineries
Managing Natural Capital at Reliance
RIL believes that energy efficiency is a core differentiator
to remain ahead of the curve and has taken decisive steps
to improve energy efficiency, thereby reducing green
house gas emission. RIL has constituted an ‘Environmental
Compliance Review Committee’ at each manufacturing
location that reviews environmental performances every
quarter, to go beyond compliance. Reliance has formulated
the ‘Environment Policy’, which states that protection of
the environment is of prime concern. The policy addresses
issues related to the employees, contractors, suppliers
and customers. The Company has installed Continuous
Emission and Effluent Monitoring Systems (CEMS) for
monitoring emissions and discharges at the refinery and
petrochemical units and this is continuously reported
to Central Pollution Control Board (CPCB). There are no
pending or unresolved show cause/ legal notices received
from CPCB or State Pollution Control Board (SPCB). Life
Cycle Assessment (LCA) studies of polypropylene products
were conducted at three manufacturing locations to
understand the overall environmental footprint of these
products. The manufacturing sites have adopted ‘Integrated
Management System’ complying with Environment (ISO-
14001), Quality (ISO-9001) and Occupational Health and
Safety Management Systems (OHSAS-18001). A dedicated
team works relentlessly to identify and implement energy
conservation initiatives, resource optimisation and
renewable energy projects at all RIL’s manufacturing sites.
Clean Air
Energy Efficiency
A) Efficiency improvement:
2)
3)
and largest ROGC complex of 1.5 MMTPA capacity
along with downstream plants and utilities. It
reduced energy intensity of ROGC to 6100 BTU/ lb
HVC (British Thermal Units per pound of High Value
Chemicals).
MEG: RIL integrated three equipment namely,
Ethylene Oxide (EO) stripper, EO re-absorber and
light ends column, resulting in reduced energy
consumption.
Ethane Import: Reliance is the first company to
globally conceptualise large-scale imports of ethane
from North America as feedstock for its cracker
portfolio in India. Cryogenic integration of ethane
handling facility with the cracker complex reduces
load on its propylene and ethylene refrigeration
systems, and in turn, significantly lowers energy
consumption by about 1000 BTU/lb of HVC.
At plant / site level:
1)
RIL deployed energy modelling tools for steam,
power, and process units thereby reducing
emissions.
2)
RIL reduced unaccounted loses by continuous
monitoring of flaring and energy performance of
manufacturing plants and minimised flaring of
hydrocarbons by incorporating innovative measures
with relevant hardware.
At equipment level:
1)
RIL modified gas turbines to operate more efficiently
with Syngas.
At design stage:
1)
ROGC: RIL has successfully commissioned and
achieved design throughput of the world’s first ever
2)
RIL replicated the success seen with advanced
technologies like Divided Wall Column (DWC) to
equipment at other plants.
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111
Culture of energy saving at shop floor level
Action Taken:
At the Hazira plant, it was
observed that pressure
fluctuations in operations of
the benzene column caused
a reduction in heat recovery
to the naphtha stream. Thus,
a new control valve with
a split range control was
used to minimise pressure
variations. Consequently,
heat recovery from the
benzene column overhead
was increased.
Outcome: Continuous
improvement in energy
efficiency through process
modification.
B)
Re-engineering feedstock value chain (Integrated
thinking - emission reduction with enhanced business
performance)
ROGC and Pet Coke Gasification (PCG) are pivotal
to the latest expansion of manufacturing prowess at
the Jamnagar Manufacturing Division (JMD). While
the refinery off gas is used as feedstock to produce
ethylene and propylene, pet coke gasification aids in
supplying Syngas as fuel. Hydrogen gas, produced as a
by-product in PCG, is used as utility in the refinery and
avoids operation of some energy-intensive Hydrogen
Manufacturing Units (HMUs). Following this expansion,
because of its top quartile performance, JMD will be the
‘last man standing refinery’ when it boils down to survival
of the fittest.
Jamnagar refineries have top decile Nelson Complexity
Index (a metric for quantifying and ranking the
complexity of refineries) of 12.7. The complexity level
of Jamnagar site is expected to improve significantly
by several notches with the commissioning J3 projects.
The NCI is a measure of comparing the secondary
conversion capacity of a petroleum refinery with the
primary distillation capacity. The index provides a metric
for quantifying and ranking the complexity of various
refineries and units.
Sustainability Report, RIL discloses the management
strategy to combat risks and seize opportunities and
information on performance of these material topics.
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 registration and issuance of
the same in the form of Certified Emission Reductions
(CERs) from the UNFCCC.
Clean Water
Best-in-class technology at JMD enables desalination of
sea water, thereby saving water from fresh water sources.
RIL ensures that all wastewater generated is treated and
exceeds all state and central regulatory requirements.
RIL encourages its sites to enhance water reusability and
recyclability by making process modifications. The Company
has made focused efforts to recycle substantial quantities of
wastewater from processes across manufacturing locations.
Continuous improvements have enabled RIL to increase
y-o-y recyclability of process water despite increasing
standards of environmental compliance.
Air Emissions
RIL regularly monitors emissions as it is a part of its
environmental management plan. In addition to green
house gas emissions, the Company closely monitors
the emissions of Total Particulate Matter (TPM), Oxides
of Sulphur (SOx) and Oxides of Nitrogen (NOx). During
FY 2017-18, RIL implemented various initiatives for
emissions reduction, which are listed in Annexure VI
of Boards’ Reports. All petrochemicals and refinery
sites have commissioned CEMS (Continuous Emission
Monitoring Systems).
Some manufacturing locations are already zero-discharge
sites and the Company aims to achieve zero-discharge
status at all its operating locations.
RIL has commissioned Sea Water based Reverse Osmosis
(SWRO) plants to convert sea water for industrial use at
JMD. Together, with the thermal desalination units, SWRO
plants enable generation of over 90 MGD (million gallons per
day) generation of fresh water with optimal utilisation from
the energy integration stand-point. JMD has achieved zero
freshwater withdrawal by implementing design efficiency.
RIL has identified material topics related to climate
change through a structured materiality assessment
process in accordance with the GRI Standards. In its
Preventing Soil Contamination
RIL takes conscious efforts to use resources as efficiently
as possible and simultaneously works towards reducing
Integrated Annual Report 2017–18Management’s Discussion and Analysis
112
Reduction in fresh water consumption
by design
Action Taken:
At the Hoshiarpur
Manufacturing Division,
water consumption was
reduced by utilising treated
ETP water for horticulture.
Outcome: During the year,
a total of 12,720 m3 of water
was saved on account of this
initiative.
Plastics and Alternatives – Myth v/s Reality
Life Cycle Analysis show alternatives have nearly
~ 4X or higher environmental footprint
During production:
• Lesser energy consumption: For example, milk packing in
plastic pouches consumes only ~10% of energy required
for packing using 1 litre glass bottles
• Lesser GHG emissions: For example, plastics produce only
~66% of GHG emissions compared to paper bags
emissions and waste generated. The Company ensures that
all waste is sent only to Government-authorised disposal
agencies. Effluents generated are treated to meet the most
stringent state and central regulatory requirements. RIL
has undertaken initiatives to ensure waste generated is
converted to useful ‘bio-manure’ using vermicomposting.
The Company has invested in technologies to extract value
from waste and create new products, thereby reducing its
waste footprint.
During use:
• Higher strength to weight ratio
• Increased food safety, quality and shelf life
• Re-sealable, reusable and easy-to-carry
During recycle:
• Lesser energy spent on recycling: For example, paper
requires 91% more energy to be recycled than plastics
Waste-to-energy:
• Plastic wastes generate twice as much energy as coal
Preserving Flora and Fauna
Reliance regularly engages in initiatives such as tree
plantation drives and maintenance of mangroves in coastal
areas. RIL allocates resources for new and expansion
projects by engaging with field experts to conduct
Waste to value through co-processing
Action Taken:
Manufacturing plants
typically generate several
types of wastes during
manufacturing processes
& shutdown periods.
These wastes have high
calorific values. The
Company explored various
possibilities and through
experimentation, finally used
co-processing of waste.
Outcome: Diligent use of
resources and lower landfill.
Reliance undertakes stringent monitoring measures
to prevent spills during handling and transportation of
materials. The Company monitors spills through an online
incident reporting system and 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.
Reducing material intensity through 100%
recycled products
Action Taken:
PET bottles, which are non-
biodegradable in nature,
after disposal, lead to
environmental degradation.
Recron Green Gold, a
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.
Outcome: RIL is recycling
about 60,000 tonnes/year of
polyester waste with more
than 2 billion post-consumer
PET bottles per year. This
results in removal of non-
biodegradable waste from
the environment and diligent
use of scarce resources.
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environmental impact assessment studies and periodically
monitors its impacts on the local biodiversity.
Reliance has initiated an evaluation of its environmental
aspects using the Natural Capital Protocol published by the
Natural Capital Coalition.
At each site, RIL has taken efforts to maintain a green cover.
As on 31st March, 2018, over 6,200Ha of green belt has been
developed across all manufacturing locations. Additionally,
over 2 crore saplings have been planted across various green
belts since inception.
RIL understands the importance of interacting with various
stake holders to mobilise actions required to protect the
environment. Consequently, in a one-of-a-kind partnership
with the Ministry of Environment, Forests and Climate
Change (MoEFCC), Government of India (GoI) and the Gujarat
Ecological Commission (GEC), Reliance actively contributed
to the setup of India’s first Centre of Excellence (CoE) for
the study of coastal biodiversity of Jamnagar known as the
National Centre for Marine Biodiversity (NCMB).
Diligent Use of Scarce Resources
RIL has taken active steps to increase its material use
efficiency such as converting organic waste to manure and
biogas, recycling various forms of used oil, recycling
of PET bottles and spent catalysts through
authorised re-processors.
According to the Solomon Energy Intensity Index, RIL
refineries are in the top decile performance. A Solomon
study identified RIL’s key strengths as energy efficiency,
operational availability and ability to utilise processing
complexities. With no products that can be classified as
‘bottom-of-the-barrel’, the Jamnagar refinery is pegged
to become among the highest conversion global refineries
with the installation of the gasification, paraxylene and
ROGC plants.
Sensitising “Go Green” as a part of regular business
Action Taken:
Reliance Retail has 7,573
stores and an area of 17.7
million sq. ft. with footfall of
over 350 million. Go Green,
is an initiative by Tetra Pak
in association with Reliance
Smart to collect used tetra
packs. Typically, a store has
a collection centre towards
its exit door to collect PET
bottles and used tetra
packs. Since 2010, over 25
lakh used tetra pack cartons
have been collected through
8,000 families involving
73 societies, 12,000
employees, 8 corporates
and 50,000 students and
teachers through 38 schools.
The initiative is listed in the
Limca Book of Records for
innovative development in
recycling.
Outcome: Increased
societal awareness & waste
recycling.
Monitoring environmental footprint
Action Taken:
The Hazira plant conducted
impact assessment on
Biodiversity & Marine
Ecosystem to determine
ecological sensitivities. In
Biodiversity assessment:
1.
A total of 108 plant
species were observed
in the study area out of
which 47 species of trees,
27 species of shrubs,
31 species of herbs and
grass and 3 species of
climbers were observed.
2.
3.
Among the faunal
species, herpetofauna
were represented by 26
species, avifauna by 140
species and mammals by
8 species.
A MoEFCC approved
laboratory also engaged
in marine environmental
monitoring assessment,
a total of 12 water
quality parameters and
5 biological parameters
at 23 sub-tidal sampling
locations. 9 sediment
quality parameters were
tested at 8 inter-tidal
sampling locations.
The results of the study were
compared with data sets
since 1983 to create an overall
assessment of the ecological
status.
Result: The balance within
biodiversity and marine
ecosystem is maintained
with minimal environmental
impact. RIL also developed
green belts which enhances
flora & fauna.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 114
Human Capital
“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 provides equal
importance to achieving results. Reliance focusses on development of
employees at professional and personal level with holistic well-being.
Over 10 years
of safe operations in Reliance E&P
business, at par with the best in
the world
Over 40%
Millennials representation in
RIL’s workforce
FY 2017-18
1,87,729
382.6
21,000
Key Performance Indicators
Key Human Capital Inputs
Total number of Reliance employees
RIL HSE Expenses (` in crore)
Cumulative ideas submitted under Mission Kurukshetra innovation programme
Total training hours in Reliance are over 57 lakh man-hours
Employees from over 15 nationalities
Career Acceleration Program (CAP), Competency Assurance System (CAS) and Corporate Graduate skills programme for
employees to groom them for leadership roles
Key Human Capital Outputs
In FY 2017-18, featured for the second consecutive year in ‘LinkedIn Top Companies 2018: Where India wants to work now’
Millennials at RIL has been consistently over 40% for the last two years
Collaboration with world-class universities
R-Voice employee engagement survey, which happens biennially, increased to 84% in 2016
Flawless Jamnagar Refinery Expansion Project execution with safety aspects better than international benchmarks
Key Human Capital Outcomes
Future-ready human resource with Reliance’s DNA and values
Direct employment created
Exponentially high indirect employment
1,87,729
50 lakh+
FY 2016-17
1,40,483
367.4
19,000
1,40,483
DNA of Reliance
• India-focussed history
• Employee-centric culture
• United by values and behaviour
• Focus on skilling and reskilling
Employees are well-aligned to the Company values from strategy to execution.
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Hital R. Meswani Ashwani Prashara
The development initiatives seek to promote equitable economic growth and ensure more sustainable,
inclusive and people-centric development with effective use of technology and internal crowd
sourcing – all embodying DNA of Reliance. The Company continues to transform its human resource
management. Reliance strengthened the learning culture through social structuring, inculcating next
generation social media technologies and collaboration with institutes of global eminence.
Over 40% of employees are millennial with a continued focus on learning, and reskilling. Employee
diversity is across generation, gender and jurisdiction with people from over 15 nationalities. HR has
evolved into a robust function which works with the aim of enabling employees to not just navigate
through the current era of disruption but also profoundly influence its success.”
United Nations’ Sustainable Development Goals
PMO’s initiatives supported by the
NITI Aayog:
• Atal Innovation Mission
• Support to Training and Employment
Programme (STEP)
Key highlights of the year:
• The World Economic Forum announced
establishing a new Centre for the Fourth
Industrial Revolution in Mumbai, India in
partnership with RIL
• Featured in ‘LinkedIn Top Companies 2018:
Where India wants to work now’ for two
consecutive years
Integrated Annual Report 2017–18Management’s Discussion and Analysis 116
Workforce Breakdown (Reliance Group)
(Agewise)
6%
10,642
47%
87,829
47%
89,258
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 at the
workplace, the Company has laid emphasis on implementing
next-generation policies like 6-months maternity leave,
followed by 6-months part-time work to help new mothers
balance child-care priorities with work. RIL continues to
undertake pro-active measures such as 24x7 toll-free
helpline for women, reserved parking for expectant mothers,
and self-defence workshop among others.
Less than 30 yrs
30 to 50 yrs
More than 50 yrs
Creating Employment Opportunities
The Reliance Group is among India’s largest private sector
employers, and has created direct employment for 1,87,729
individuals. Reliance continues to shape a progressive work
environment, where purpose-driven talent is attracted,
engaged and motivated by a culture of meritocracy.
Committed to moving towards a younger workforce, 45% of
Reliance’s employees today are millennials. The Company’s
rate of attrition has consistently stayed below the industry
average over the past 3 years.
At RIL, the entrepreneurial culture is aimed to encourage
the young generation to play a vital role in the organisation's
growth.
Diversity and Inclusion
Reliance recognises and respects different cultures,
nationalities, races, religions and sexual orientations in the
world, and among its people. The group focusses specifically
on three aspects of diversity: gender diversity, multi-
generational diversity and employing people with disabilities.
Employee Breakdown (RIL)
3%
19%
14%
1%
2%
61%
Leader
Manager
Executive
Trainee
Apprentice
Non-Supervisor
Quotes by R-Aadya stalwarts and other high achievers
“I got the opportunity to work with various business leaders
across different functions, and today I feel honoured and proud
to be the first female production manager at RIL. This is my
greatest accomplishment so far and feels truly special.” - Hetal
Kothari, Production Manager – Vadodara Manufacturing Division
Augmenting Capabilities and Learning &
Development
Augmenting Capabilities
RIL’s team capabilities are being augmented through the
HR Platform, a first-of-its-kind HR service. It leverages the
micro-service architecture to provide seamless and
real-time delivery and resolution of business requirements.
The use of data analytics at RIL aims to enhance the overall
organisational effectiveness. Over the last year, there
has been an increased focus on the use of analytics and
algorithms within businesses. RIL’s business leaders are
now equipped with real-time dashboards that track all
relevant KPIs across the hire-to-retire cycle. FY 2017-18
also witnessed the application of predictive and prescriptive
analytics in the areas of talent acquisition, workforce
architecture and attrition management. Together, these
applications are helping RIL create an ecosystem, where it
recruits the right talent and enables them to flourish and fulfil
their career aspirations within the organisation.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 117
Learning and development
Reliance aims to maximise organisational performance through
business aligned investment in learning. RIL’s expansion
into diversified segments requires specialised skill sets.
The emphasis lies on progressing and building a learning
environment which is accessible, automated and available for all
employees. The Company has expanded communications and
education campaign to ensure that the learners are fully aware
of the resources available to them.
Using technology for highly interactive, collaborative and device-agnostic platform.
1)
Social Learning
Platform
Learnet
Lynda.com
Platform for social learning and knowledge sharing
across all levels and locations focussing on three pillars;
Partnered with Lynda.com to provide high quality
digital video tutorials by experts to all employees
Philosophy and
action
a. Empowerment & democratisation of learning
b. Agility and fluidity of learning
c. Seamless blend of learning and work
Impact in launch
stage
Employees have shared 769 self-recorded video and
text blogs/ discussions so far with 6,698 comments and
31,690 likes
36,000+ employees are active, viewed over
1.2 million videos and completed over 23,000 course
certificates
Outcome
Social-restructuring amongst employees. Internal crowd sourcing, breaking silos across functions, hierarchy,
geographies and promoting the concept of learning from anybody, from anywhere and that too by anybody,
anytime and anywhere
2)
Driving talent management programmes which help
align business goals and create more opportunities for
employees in transitioning to next levels
• Competency Assurance System (CAS) Process – Building
critical domains of technical and functional skills by
addressing current and future business challenges,
effectively through competent workforce
• Career Acceleration Programme (CAP) - high potential
identification and acceleration programme for middle-
level management
• Corporate Graduate skills programme – A 3 year
development programme that enables graduates to take
accountability of their learning and perform successfully
within the organisation
RIL regularly reviews the talent and potential of its
employee base. Annual talent reviews have allowed RIL
to strengthen its leadership pipeline and be future ready
at all times
Integrated Annual Report 2017–18Management’s Discussion and Analysis
118
3) Learning and learner environment
RIL creates environment through series of activities
like learnet studios, learning kiosks, world-class
infrastructure multipoint video conferencing,
organisation-wide learning week– Spectrum,
organisation-wide knowledge sharing campaign,
“Inspire” among others.
4)
Employing measurement and analytics tools to
improve feedback mechanism and promote internal
communication, transparency, employee enthusiasm
and participation in learning events.
Learning & Development
Business
alignment
Learning Environment
Learner
Measurement
& Analytics
Technology
Talent
Learning
Community
Career
Employee Engagement, Health and Well-being
Leadership Expectations
RIL has a defined a Leadership Expectations (LEs)
framework, that is applicable to all senior level and group
level leaders. These LEs serve as a consistent guiding
compass in how RIL operates, how it leads effectively, how it
makes decisions, and what it deems important.
Additionally, through R-Radio interviews and leader blogs,
leaders share their personal experiences on four different
components of Leadership Expectations i.e. Act Decisively,
Deliver Results, Value Expertise and Inspire People.
The intended focus on expanded accountabilities and
followership enables direction-setting and coaching of RIL’s
future leaders further expanding its leadership cadre. RIL’s
behavioural learning interventions are increasingly focussing
on self- learning.
To foster a culture of expressing appreciation and gratitude,
a peer-to-peer recognition programme – ‘R-Sammaan’ is
available to employees. This programme reinforces the
values and behaviours that employees are expected to
demonstrate through its tangible and digital tools i.e. social
web page and mobile interface.
R-Voice is a fully confidential employee feedback survey to
gain actionable insights into making the Company a great
workplace. The engagement scores have shown a steady
improvement in the last 3 years – constantly closing the
gap to global benchmarks. As a result of R-Voice, there is a
growing focus on continued manager support and enhanced
employee connect.
Employee engagement practices include policy and reward
awareness sessions, recognition ceremonies, town halls,
and webcasts. The Bring Your Family to Work (BYFW) is an
enriching initiative that fills employees’ family members
with pride. It instils a deeper understanding of the vibrant
workplace. This year’s BYFW event saw over 15,000
colleagues & their family members participating.
• R-University has more than 100 platforms offering
collaborated learning by the learner for the learner.
• During FY 2017-18, Reliance imparted 57 lakh+ man-
hours of training to its people across the group.
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RFD Celebration: Spirit of celebrating together
119
Reliance Family Day (RFD) was celebrated to commemorate the birth anniversary of Shri Dhirubhai Ambani. The theme celebrated
the past, the present and the future of the Company with the incumbent Chairman highlighting key achievements and his vision
for Reliance. With over 1.5 lakh colleagues and their family members participating, RFD is the biggest corporate celebration in India
reflecting spirit of ‘One Reliance’.
are carried out for all employees and their spouses. A health
score is generated through the Health Management System
(HMS) for each individual. Additionally, 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.
Located at each of the manufacturing locations and
corporate office, the Occupational Health Centres (OHC)
offer preventive, promotive, curative and rehabilitative
health services. These 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. Wellness will be the
major focus in RIL health improvement interventions with
emotional well-being, a key driving force. In today’s digital
ecosystem, JioHealthHub, an IT-enabled platform, simplifies
the management of health records by enabling users to
upload medical data and maintain a medical profile.
As a testimony to the consistent efforts in making
Reliance an Employer of Choice, Reliance has been
featuring in the “LinkedIn Top Companies 2018: Where
India wants to work now” list consecutively for 2 years.
Additionally, Business Today has recognised RIL as one
of the top 25 best companies to work in India in 2017
Health and Well-Being
The Company has state-of-the-art fitness centres with
modern equipment, professional trainers, a gym hall,
aerobics, yoga and dieticians. Dedicated ‘Sports Zones’
across the site are equipped with table tennis, chess and
carrom as well as world-class grounds for cricket, football,
basketball and lawn tennis. A holistic wellness approach has
been implemented in the Company through several medical
services, sports and other related initiatives.
The state-of-the-art facilities at its medical centres extend
24x7 prompt medical care. Periodic medical examinations
Project product loss control
Action Taken:
The bottom performing
ROs were required to be
revamped in terms of
product loss to within
permissible limits. Hence,
L & D took up the business
need of “Product Loss
Control” on a project mode
and designed a complete
“on-field” assessment and
training module.
Outcome: The business
needs of bringing product
loss under control was
addressed with a 65% drop
in product loss in diesel,
76% positive feedback
on product loss control,
training effectiveness and
91% positive feedback
on increased operational
efficiency
Integrated Annual Report 2017–18Management’s Discussion and Analysis 120
The ‘Reliance Employee and Family Emergency Response
Services (REFERS)’ initiative offers assistance in case of any
medical, accident, fire and security exigencies to employees
and their families.
Initiatives such as Task Based Health Risk Assessment
(TBHRA) and ‘R-Swasthya’ create a culture of holistic
employee well-being. Additionally, the Company organises
Good Health and Health Improvement awards across
all its locations.
R-Swasthya:
• Through R-Swasthya, an employee holistic wellness
programme, RIL sensitises its employees and their family
members about the concept of work-life balance and
importance of a healthy lifestyle. RIL conducts structured
monthly health programmes, health bulletins and health talks
to enhance the well-being of its employees and their families.
Task Based Health Risk Assessment:
• Through the Task Based Health Risk Assessment, employees
are being mapped in Health Management System (HMS) – a
database of health records. This has enabled RIL to provide
a focussed approach to employees across job-profiles and
geographies. The health risk profile mapping of individuals
into HMS enables a healthy working environment.
Reliance Health Index:
• After the completion of Periodic Medical Examination, a
health score for each employee is generated, based on
multiple parameters (family and past history, exercise,
lifestyle, and test results). The results are categorised based
on the severity of risk and frequency of medical health
checkup needed. Internally, Reliance has set a baseline
comparable to the best global practice for Health Index with
scope for continuous improvement.
RIL is globally certified as a ‘Healthy Workplace’ for the
period of 2017-2019 by the Global Centre for Healthy
Workplaces, Tucson, USA. RIL’s best practices for a healthy
workplace has featured among 15 Global Best practices
studies.
Safety
The Operating Management System (OMS) is the way
RIL operates. It help deliver safe, reliable, and compliant
operations. Conformance to the OMS is a dynamic process
designed to continuously improve practices, manage risk
and drive performance improvements. The performance
improvement cycle defined in the OMS has given rise to
a sustainable competitive advantage. The Company’s
principles and practices includes:
1) Safety of a person overrides all production targets.
2) All injuries, occupational illnesses, and safety and
environmental incidents are preventable.
3) RIL shall strive to be a leader in the field of management
of Health, Safety and Environment.
A fully equipped and well-qualified Health Safety and
Environment (HSE) and process safety organisation is in
place at all locations providing necessary governance,
documentation and HSE assurance. To usher in technical
expertise and intervention, and to independent assurance,
the Safety and Operational Risk (S&OR) function is in
place at the corporate. RIL has developed a consistent
and systematic approach for defining potential risks and
protective measures at every facility level, on an annual
basis. The tools for risk management, incident management,
change management and operating management system
(OMS) are digitalised to integrate and bring uniformity across
the organisation.
The Company’s safety awareness theme for last year ‘Yes!
I understand Risk’, aimed to raise risk awareness amongst
internal and neighbouring stakeholders regarding the Highly
Toxic Material (HTM) management programme. Various
programmes like leadership panel discussion on HTM risk
management, posters & other display material, sessions for
contractor personnel, HTM emergency drills, among others
were organised across sites.
Reliance conducts itself responsibly. Reliance E&P has a track
record of over 10 years of safe operations, at par with the
best in the world.
The Jamnagar Refinery Expansion project has exceeded
international benchmarks in quality, safety, cost and
schedule. Besides, new records for flawless start-ups and
commissioning have been established.
Ethics, Human Rights and Redressal
The Company’s Code of Conduct ensures that all its
employees, suppliers and vendors respect human rights
not only among themselves, but also within communities
in which they operate. Reliance 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.
The Company has established a vigil mechanism for
employees and directors to report concerns about unethical
behaviour, actual or suspected fraud or violation of the
Company’s Code of Conduct. As mentioned in the policy, an
Ethics and Compliance Task Force (ECTF) has been established
by the Board with a member of the Board as the Chairman.
The ECTF oversees and monitors the implementation of
ethical business practices within Reliance. The task force
meets once in three months to review the complaints/
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 121
incidents, and reports to the Audit Committee. It comprises
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. While the Executive
Director chairs the meetings, the Head of Business Integrity
plays the role of the secretary and subject matter expert.
The reportable matters may be disclosed to the Ethics and
Compliance Task Force which operates under the supervision
of the Independent Audit Committee. Employees may also
report to the Chairman of the Audit Committee.
All the Company units maintain 100% compliance with local
and national laws, with respect to 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. Reliance recognises the
‘corporate responsibility to respect human rights’, as outlined
in the framework of United Nations Guiding Principles on
Business and Human Rights (UNGP). RIL has therefore
embedded human rights into its policies, business systems
and processes to address issues related to human rights.
RIL has formed the Internal Complaints Committees at 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 case of child labour, forced labour,
involuntary labour, sexual harassment or discriminatory
employment were reported during the period.
Quotes from Reliance Innovation Council
Freedom of Association
The Company has recognised employee unions and
associations at various sites, which encourage 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 complies with the local and national
laws.
Governance and Integration
The HR function has robust overall functioning and continues
to raise the bar of excellence in people policies, practices,
systems and data. This is being accomplished by driving a
mature governance and management assurance process.
Innovation
Sustainable value creation for all stakeholders of Reliance
is enabled by innovation. From sparking off the equity cult
in India to setting up the world’s largest grassroots refinery
to now ushering in a digital revolution in India, Reliance has
always demonstrated that innovation is in its DNA. Reliance’s
innovations touch many facets of life in India including
transportation, retail and healthcare.
Reliance focusses on three aspects surrounding business
innovation – talent, process and environment – to find
innovation opportunities. Reliance develops and deploys
relevant programmes leveraging technology and harnessing
expertise aimed at creating value and a culture of innovation.
Nobel Laureate
Jean-Marie Lehn
Nobel Laureate
Robert Grubbs
Dr. William
Haseltine
Prof. Gary
Hamel
Prof. George
Whitesides
“I have been affiliated
with many companies
across the world, but
Reliance is certainly
the one that is boldest
and with the widest
perspectives, and with
the conviction to turn the
ideas into reality.”
“It is interesting to watch
a company do refining,
followed by retail,
followed by 4G – thanks
mainly to its innovation
in management
leadership.”
“The quality and
excellence that Reliance
is capable of executing
in everything that it
touches, is the best of
what India has to offer. It
is an inspiration not only
for this country but for
the whole world.”
“I must compliment
the systemic approach
Reliance is taking
towards innovation
– it is very rare; most
organisations don’t.”
“Reliance is one of
the most innovative
organisations together
with now being one
of the best R&D
organisations.”
Integrated Annual Report 2017–18Management’s Discussion and Analysis 122
Innovation Programmes
LEAP –
Democratising Inspiration
7 Innovation Habits
Mission
Kurukshetra –
Democratising
Innovation
Beyonders
Chairman’s MK
Challenge (CMKC) –
Crowdsourcing Value
Innovation thrives within inspired
minds. Leading Expert Access
Programme (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.
• Develop deep empathy for
customers
• Look beyond one’s industry
for ideas
• Think beyond product
innovation
• Transform the way the job gets
done
Imagine the impossible
•
• Become a contrarian
• Beware of idea killers
Mission Kurukshetra
(MK) is a step towards
democratising
creativity and
innovation within
the organisation.
Through the MK
technology platform,
employees can submit
ideas and track their
progress right up to
implementation
Beyonders is a
programme which
applies design thinking
principles, with world-
class innovation tools
to solve complex
business problems
and find innovative
solutions to disrupt
business models
Outcome
Since inception, 43 LEAP
lectures have been organised.
During the year, eminent persons
who inspired and interacted with
people at Reliance through LEAP
are Ramji Raghvan from Agastya
International Foundation,
Samir Mitragotri from Harvard
University, Mohandas Pai from
Manipal Global Education,
Deepa Malik- Olympic silver
medalist, Ronnie Screwala-
Founder UTV group and
Arundhati Bhattacharya- Former
Chairperson, State Bank of India
Impact
Inspire a culture of thinking big
about Reliance, the communities
it operates in and the whole
country
Almost 30 workshops of 7
Innovation Habits have been
conducted till date, including
for Jamnagar Manufacturing
Division, Hazira Manufacturing
Division and Reliance Retail teams
MK is now a treasure
trove of almost 21,000
employee ideas that
have a combined
potential to create
significant value for the
organisation
Empower Reliance employees to
inculcate innovation skills
Enable a culture
of internal crowd
sourcing
Beyonders programme
is a flexible innovation
methodology for
result-oriented
project execution.
The programme
accelerates the natural
flow of the innovative
thoughts to discover
novel solutions to
critical problems
Applying design
thinking principles
together with world
class innovation tools
to solve complex
business problems
and deliver first-to-
world breakthrough
innovations
CMKC is a unique end-to-
end innovation programme
– starting from identifying
a strategy based on market
and technology trends and
culminating into ideation
workshops across the
different organisational
layers. The programme
focusses on building
innovation capabilities
by training employees on
world-class innovation
tools & techniques and
fostering a culture of
innovation
CMKC aims to develop
innovative solutions for
identified opportunities
using innovation tools
and crowdsourcing and
implement innovative ideas
on identified themes
Driving substantial
innovation and fostering a
culture of innovation
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123
Business or function
leaders initiate a
campaign seeking ideas
Invited ideators submit
ideas to designated Idea
Champion
Idea Champions and
Leaders jointly decide on
implementation
Other Innovative Ideas
Ideators submit ideas
for any business or
function
MK directs idea
to domain
Idea Champion
Idea Champions and
Leaders jointly decide on
implementation
Ideas from Mission Kurukshetra platform
An idea was submitted on MK to use pre-existing infrastructure in parallel pipelines to house the control equipment for a new ethane
pipeline. This idea eliminated the need for new construction and led to a value addition of `90 crore.
An idea was submitted to optimise the reboiler duty of the toluene column by feeding these two streams directly into the column at
different trays. This not only helped conserve energy, but also created value of `21 crore.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 124
Intellectual Capital
Reliance has transitioned from a smart buyer of technology to a
customiser of technology and is now a flagship developer of technology.
Reliance R&T has breakthrough technologies for all its principal
businesses enabling it to meet the demands ahead of competition.
Jio ranked 17th
in ‘50 Most Innovative
Companies’ list 2018
24
R&D labs
in Navi Mumbai
R&D centre
900+
Scientists and
Engineers
Key Performance Indicators
Key Intellectual Capital Inputs
Patent applications filed (Reliance)
*Total Expenditure incurred on R&D (` in crore)
Researchers/scientists/technologist/engineers
Headquarters R&D Centre with total area
Collaborations with global universities for R&D
Key Intellectual Capital Outputs
Number of patents granted (Reliance)
Over 4,000 customisations of plant’s manufacturing processes
Reliance Jio is future ready for technologies: 5G and beyond
FY 2017-18
192
1,824
FY 2016-17
373
1,448
900 +
1,20,000 sq. ft
68
60
RIL’s breakthrough R&D under development:
1. Algae platform technology – Sustainable source of biofuels, bio-chemicals and nutritional products
2. Biodiesel – Securing India’s energy needs through clean fuels
3. Syngas to bio-chemicals with varied applications in synthetic biology
4. Coal Bed Methane – converting unminable coal to methane
Product Stewardship across all segments
Key Intellectual Capital Outcomes
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.
Reliance Jio ranked 17th in American business magazine Fast Company’s ‘50 Most Innovative Companies list’ 2018.
Future ready for all of Reliance’s businesses with next-gen technologies:
• R&M: Euro VI capable refinery
• Petrochemicals: Advanced materials and composites
E&P: Digitally enabled deep water capabilities
•
•
Jio: Ready for 5G and beyond
• Retail: Omni-channel presence
• Media: Multi-platform and multilingual
*Standalone
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 125
Hital R.
Meswani
Ajit Sapre
Dr. J.V. Kelkar
Gerard Denazelle
Suketu Vakil
In the petrochemicals business, RIL has technologies for next generation composites, making polymer better than steel,
replacing wood with its product that are better than wood. In exploration, RIL is developing technologies to get Oil from Algae.
Besides, RIL has technology for cleaner fuel, process optimisation & energy management and much more.
Reliance’s proprietary technologies can be scaled up & patented. During the year, 68 patents have been granted. The Company
uses internal crowd sourcing as an enabler to R&D and documents the R&D data, process and analytics digitally. During the year,
R&D expenditure was `1,824 crore. The 24 state-of-the-art labs in Navi Mumbai R&D centre, having a total area of
120,000 sq. ft. are spread across various businesses and functions for conducting high-end inter-disciplinary research and are
manned by 900+ scientists and engineers.“
United Nations’ Sustainable Development Goals
PMO’s initiatives supported by
the NITI Aayog:
• Atal Innovation Mission
• Make in India
• National Policy on bio-fuels
• National environmental policy
Key highlights of the year:
• 26.0% increase in R&D expenditure
• Received FGI (Federation of Gujarat
Industries) awards for excellence for
‘Research in Science & Technology’
Integrated Annual Report 2017–18Management’s Discussion and Analysis 126
Research & Technology (R&T)
R&D Megatrends
As the world puts more emphasis on renewables and a low
carbon economy, commodity chemicals give way to high-
performing specialty polymers and chemicals. Digitisation
and advanced analytics, when coupled with nanomaterials
and biomaterials, will pave the way to derive maximum value
from existing operations.
RIL fosters a robust research and innovation culture to
address emerging challenges and demands of its diverse
customer base. The Company’s R&D has end-to-end
presence in value chain from feedstocks to valuable
products. It continually evaluates various opportunities
to excel and benchmark existing products and processes
with best-in-class technological progressions. It leverages
various alliances and partnerships with various institutions
for research and development activities.
Reliance R&T: Fundamentals to value creation
Molecules
Catalysts
Novel Reactors
Processes
Markets
Products
R&T Enablers:
Process and molecular modelling,
advanced analytical, scale-up,
R&T project management
Capability to support existing
businesses:
Chemical synthesis, reactor design,
process development, catalysts &
adsorbents, polymer science
Capabilities for new businesses:
Synthetic biology, genomics,
bioinformatics, nano-technology,
alternate energy, new materials, green
chemistry
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 127
Organisational Structure
Reliance focusses on:
1) Breakthrough R&D for existing and new businesses
ahead of megatrends and
2) Near-term R&D to innovate processes and products for
competitive advantage
Reliance R&T is future ready:
At Reliance, R&D is governed and operated by a well-defined
set of teams: Strategic teams, Leadership teams and
Functional excellence teams.
Enables the fourth industrial revolution, an amalgamation of physical, digital and biological innovations
I n t e g rated Science
O p p o r t unities at the Intersection
Synthetic biology has potential to
integrate and impact all three sciences
Physical
Digital
New materials
IoT, AI, Big Data
Biology
GMO
Composites/ advanced
materials
APC & RTO; NPDI*
Syngas to Biochemical
* Advance Process Control (APC) & Real Time Optimisation (RTO); New Product Development & Introduction (NPDI)
Focus areas of R&D
R&D at RIL has end-to-end presence in value chain from
feedstock to valuable products. Reliance has grown to
be one of the largest and most successful refining and
petrochemical companies in the world. Reliance is now
becoming a world-class developer of technologies in
alignment with global megatrends.
Reliance Jio continues to deploy various technologies, both
wireless and wireline. The focus is constantly on underlying
step-out processes in network design and deployment,
applications and services development, enhancements with
customer experience as a pivotal focus.
Some of the key initiatives consistent with the above trends
are mentioned as below:
Development of composites from polymer -
stronger than steel
RIL innovated and developed a novel disentangled high
molecular weight polyethylene (DPE) and the polymerisation
process to make polymer strength better than steel in axial
direction. The process is scaled up to pilot (first time in the
world) and can be deployed in armour & other applications
(tested & found suitable). The DPE polymer made into
high strength and high modulus tapes, composites, ropes,
molded pipes, pultruded rods and discs. RIL has patented
this stepping stone towards nanomaterial & composites.
Catalytic gasification
RIL has developed catalyst that can gasify feed like pet
coke at temperature below 7500C. The catalytic process
Integrated Annual Report 2017–18Management’s Discussion and Analysis 128
can be used to convert high ash Indian coal to high value
syngas. Work is underway to demonstrate the technology at
larger scale. Patent applications have been filed in multiple
countries.
Innovative product Relfarm S - food productivity
India has 3.8 million hectares of uncultivable sodic soil
and about 80 million hectares of sulphur-deficient soil.
Relfarm S will help in improving soil productivity and convert
uncultivable land for farming.
Eco-smart PVC for specialised applications
Inherently Polyvinyl chloride (PVC) is processed with
higher quantity of external plasticisers which subsequently
leach out resulting in deterioration of product quality and
performance. RIL has developed PVC which does not need
any external plasticisers. Eco-smart PVC retains its inherent
properties, has better extrudability, better transparency and
does not deteriorate over the life cycle of product.
Fuel Cell - Alternate energy
A NMITLI project with CSIR collaboration resulted in
development of 3 kW Polymer Electrolyte Membrane (PEM)
fuel cell stack. Work is underway to extend it to make a
complete fuel cell system for telecom tower power backup
application in collaboration with suitable partners.
Bio-compostable polymers
Globally, plastic pollution is an environmental concern
which is predominantly contributed by packaging plastics.
RIL has developed biodegradable polymers for packaging
applications. The developed product has performance that
is at par with current packaging polymers in terms of physical
and mechanical properties. This development will reduce
plastic waste generation and adverse environmental effects.
Algae platform technology development
RIL has developed a catalytic hydrothermal liquefaction
(RCAT-HTL) process, which utilises water available in the wet
biomass and bio-waste to initiate a myriad of chemical and
physical reactions to convert biomass organics to valuable
bio-products and recovers water as well as nutrients. RIL
has developed some of the world’s most innovative algae
cultivation systems. RIL is exploring multidisciplinary biology
and engineering scientific streams to create a safe and
sustainable source of biofuels, bio-chemicals and nutritional
products as food and feed. Algae bio-crude will help reduce
India’s dependence on energy import and also fortify the
rural economy by creating large number of jobs.
in the development of high-yielding Jatropha hybrids. RIL is
also partnering with global leaders in creating a benchmark
amongst the technology available worldwide. It will enable
production of biodiesel, helping address the energy security
of India through rural development.
Syngas to bio-chemicals
Reliance is poised to be the largest producer of syngas
from the petcoke gasification units at Jamnagar. Besides
being used as energy feedstock, additional valorisation of
syngas is possible by converting it to bio-chemicals using
fermentation. Using synthetic biology approaches, novel
biochemical pathways have been designed to produce
various chemicals in syngas utilising bacteria at Reliance.
Significant progress has been made in demonstrating these
pathways in bacteria and optimising the metabolic flux.
State-of-the-art capabilities have been built in the metabolic
engineering area. The techno-economics of making these
chemicals from syngas using biological ways are extremely
competitive when compared with conventional ones.
Coal Bed Methane (CBM)
The unminable coal, if not redeemed for its value in the
form of methane production, would be a waste of natural
resources. RIL BioCBM process is targeted at converting
unminable coal to methane, a fuel that can improve the
country’s energy security.
Synthetic Biology - Multiple Cross discipline research for
functional food, feed, nutrition, and unique biomaterials
Synthetic biology with all other allied technology
developments in today’s world is becoming much more
robust, intelligent, high-throughput and serves as one
of the most important pillars of 4th industrial revolution,
where biology, digital and physical platforms will merge to
deliver revolutionary technologies to meet future demands
of growing and prosperous humanity. Multiple and diverse
disciplines, viz. molecular biology, genetic engineering,
systems biology, biophysics, computer science, big-data
analytics, and robotics are clubbed under the umbrella
of synthetic biology. Synthetic biology makes it easier to
assemble pieces of DNA effectively and modularising them
in an automation pipeline for standardisation and rapid
commercialisation.
Synthetic biology platform for society at large, with
Reliance’s strong capabilities in digital technology promises
to contribute and create opportunities in agriculture,
environment, and health.
Biodiesel (Jatropha and others)
The key focus is to enhance the productivity of bio-diesel
crops such as Jatropha, Calophyllum and Pongamia, etc. and
cellulosic ethanol crops. RIL has made significant progress
RIL is committed to leverage the next generation biology
advancement to create significant societal impact and make
life healthier and more comfortable.
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Green solution to India’s growing energy
demand using waste as a resource
Action Taken:
Catalytic Hydrothermal
liquefaction (R-Cat HTL),
developed by RIL, converts
wet biomass and organic
waste into energy and
recovers fertiliser-rich water
and bio-char.
Potential: Pilot is done
and is fully operational.
This scheme if scaled up &
found suitable, has potential
to solve dumping waste
problem for society at
large and will emerge as a
environmentally sustainable
process.
R&D – Health, Safety and Environment (HSE)
Ionic liquids replacing Hydrofluoric Acid
RIL has developed an Ionic Liquid (IL)-based catalyst
process technology to replace the Hydrofluoric Acid (HF)
in the manufacturing of Linear Alkyl Benzene (LAB). HF is
potentially hazardous and can be replaced with the Ionic
Liquid. Customer trials are underway based on the material
produced at pilot plant. The Company’s two commercial LAB
manufacturing units, in Patalganga and Vadodara, will be
converted from licensed HF-based technology to inhouse
IL-based technology. RIL has patented IL technology.
Hydrodesulphurisation (HDS) and Hydrodenitrogenation
(HDN) of fuel products
Government regulations and environmental standards
on sulphur content in fuels are becoming more stringent.
Reliance is working on new Ionic Liquids (IL) to produce
cleaner fuel using chemical processes which operate at
moderate conditions to remove sulphur and nitrogen
species that are difficult to remove in traditional HDS /
HDN processes. The indigenous process can be easily
incorporated in the existing hydro-treating plant and can
help in producing cleaner fuel.
Slag waste to chemicals
Hydro process, requires large quantity of acid or alkali for
leaching or the pyro process, which involves very high
temperature i.e. above 17000C. RIL has developed a low cost
low temperature hybrid green process to extract vanadium
from gasifier slag. The green process is being scaled up from
lab to pilot.
Direct conversion of CO2 to Dimethyl Carbonate (DMC)
RIL and CSIR have jointly developed a mixed oxide stable
catalyst to directly convert methanol and CO2 to a high value
product e.g. DMC. Until now, DMC production is being done
through non-green phosgene process which inherently
results in high cost of production. Thus various application
of DMC including its use as additive for gasoline gets ruled
out. DMC is also the gateway for making polycarbonate and
thus of high strategic value. DMC used as fuel allows for
economical methanol consumption without the demerits
of direct use of methanol in Internal Combustion (IC)
engine. The joint process and catalyst has been tested on a
continuous scale, providing stable operation. A strategy for
scaling up is being explored.
Replacement of natural wood pulp in cement flat boards in
autoclave
Currently, wood pulp is used in cement fibre boards for the
autoclave process. Research is being carried out to replace
partial amount of wood pulp with polyester short cut fibres
to get the required strength and to save natural resources.
R&D Key Product Stewardship
Refining
Capable of Euro VI –readiness for future product at
global market. The key focus areas for R&D in refining
are around process improvements and value extraction,
through processes like coking, hydro processing, Fluidised
Catalytic Cracking (FCC), crude processing and advance
separation, gasification, syngas and CO2 value creation,
reliability improvement, and molecular level process
optimisation. Besides conventional refining areas, RIL is also
venturing into new areas such as CO2 to chemicals, biomass
gasification, value addition through refinery by-products and
nanotechnology-based applications.
Petrochemicals
Using the theme of Chemistry for Smiles RIL has introduced
products such as Recron® GreenGold which uses CertainT,
a proprietary DNA-molecular based traceability system that
identifies, tags, tests and tracks the original recycled PET
Integrated Annual Report 2017–18Management’s Discussion and Analysis 130
pellets to finished products. The CertainT platform helps
assure the origin, authenticity, traceability, sustainability and
quality of GreenGold. For details on the product please visit
the website: www.r-elan.com
Advance Process Control (APC) & Real Time
Optimisation (RTO)
• APC and RTO applications facilitates minimising variations,
increasing throughput, optimising yields, minimising utility
consumption, improved stability, reliability and profitability of
process units.
E&P
Reliance received US patent for development of system for
regeneration mono ethylene glycol and a method thereof.
Retail
• Project Eve is an experiential store crafted for independent
and sophisticated women. It offers apparel, beauty &
cosmetics, accessories, footwear, in-store salon and a café,
all under one roof and provides a differentiated, engaging
store environment with a sophisticated yet simple, inclusive
and comfortable store ambience.
• Reliance Retail launched JioPhone which has opened
up possibilities for ~500 million feature phone users to
experience digital freedom. The innovative phone brings in
features of a smart phone in a revolutionary device with its
proprietary operating system KaiOS. The phone operates
on 4G LTE, supports VoLTE (HD Voice), Video Calling, NFC,
hosts range of Jio apps, and can be operated via multilingual
voice commands. JioPhone can project content on any TV
with JioMediaCable.
Jio
Jio continues to innovate across the digital value chain
through process innovations and optimisation, technology
platforms and stack applications, big data analytics and
other key network infrastructure components as well as in
customer service areas. Jio has so far filed 68 patents of
which 11 have been already granted in various jurisdictions.
Jio continues to invest in integration and innovation across
the digital value chain.
R&D Enablers
Infrastructure
The state-of-the-art R&D department, headquartered
in Navi-Mumbai is one of the largest in the country and is
counted amongst most sophisticated labs in India. It includes
24 labs having a total area of 120,000 sq. ft. This centre is
supported by its regional R&D Centres spread across India.
All the R&D centres are well equipped with best-in-class
infrastructure for conducting high-end inter-disciplinary
research.
R&D Centres and their Focus Areas
Navi Mumbai
Catalysis, chemistry, process engineering, modelling,
simulation, material science, synthetic biology,
biotechnology, downstream polymer processing,
product applications and advanced analytical
Hazira
Polypropylene catalysis, and pilot scale testing
Vadodara
Catalysts, adsorbents, organic chemistry, process
development, applied biology, environmental science,
and polymer applications and technologies, elastomer
application and technologies
Patalganga
Polyester materials, processes, products, and
applications
Jamnagar
Crude characterisation, process research, and pilot
scale facilities for supporting refining operations and
renewable energy technology development
Gagva
Pilot plants in over 40 acres of land to develop algae on
sea water and convert biomass to biofuel
Samalkot
Biotechnology for biofuels
Naroda
Performance properties for apparel fabrics and auto
textiles
Collaboration
Reliance continues to actively pursue collaborations 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
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the research and development activity, RIL has a pool of
scientists and engineers (900+) from reputed Indian and
international institutes, few of them are listed below:
Indian
Indian Institute of Science, Bangalore
Indian Institute of Technology (IIT) – Mumbai, Delhi,
Kharagpur, Kanpur, Madras
Institute of Chemical Technology (ICT), Mumbai
Tata Institute of Fundamental Research (TIFR), Mumbai
International
Florida State University
Massachusetts Institute of Technology
Washington University in St. Louis
Louisiana State University
Some of RIL’s scientists have membership/fellowship in
reputed bodies such as IICHE, NBRI & FANE.
R&D Expenditure*
Capital
Revenue
Total
*Standalone
FY 2017-18
1,026
798
1,824
FY 2016-17
593
855
1,448
FY 2015-16
631
628
1,259
FY 2014-15
722
498
1,220
(` in crore)
FY 2013-14
810
408
1,218
Intellectual Property
The patent filings are mainly driven by the objective of
creating business-aligned patent portfolio having a good
mix of patents on improved and cutting-edge technological
solutions. In FY2017-18, a total of 57 patents were granted
to RIL. Reliance is recognised in Asia IP Elite, a select
club featuring companies from Asia Pacific region which
emphasise on integrating intellectual property with
commercial decision-making.
Organised Big Data and Digitisation in R&D
Reliance has implemented fit-for-purpose management
systems, work processes and tools for achieving excellence.
Few of the examples of the digitisation and process centric
initiatives are mentioned below.
a) Electronic Laboratory Notebook (ELN)
R&D 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 is an experiment and/or procedure-driven
electronic laboratory notebook application designed to
give the scientists a robust platform to capture and store
both structured and unstructured data as they conduct
experiments or execute laboratory procedures. 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.
b) New Product Development & Introduction (NPDI)
R&D 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”. This module is
integrated to several other SAP & non-SAP modules viz.
FICO, P&C, HCM, IMPS, ELN and others.
c)
Intellectual Property Management System (IPMS)
R&D has implemented an enterprise-wide Intellectual
Property Portfolio Management application from
product leaders “Thomson Reuters” for centralisation of
patent filing. It enables focussed patent filing and helps in
having a centralised repository for various stakeholders.
Integrated Annual Report 2017–18Management’s Discussion and Analysis
132
Manufactured Capital
“Every day, advances in manufacturing technologies make factories
smarter, safer and environmentally more sustainable. Jamnagar
expansion project, one of the world’s most complex and highly integrated
project, set a world record for fast track project execution.
It has re-defined refining and petrochemicals integration. The investments in megaprojects and complex supply chains have
enabled it to improve energy efficiency and reduce operating costs. Reliance has entered the world of advanced materials
& composites by using the technology of 3D printing. Reliance leverages digital technologies such as Platforms, Artificial
Intelligence, Machine Learning, Robotics Process Automation, Big Data, Internet of Things (IoT), Blockchain, 3-D Printing and
Augmented/Virtual Reality to create innovative solutions for business value addition.”
Key Performance Indicators
Key Manufactured Capital Inputs
Total Asset Value (` in crore)
Grades of crude processed
World’s largest green-field refinery & petrochemical complex
Largest PX project globally
World’s largest off gas cracker & downstream PE and MEG units
Jamnagar Refinery Expansion Project
• 3.5 million m3 concrete poured, equivalent to 13 Burj Khalifa towers
• 4,60,000 MT structural steel erected, equivalent to 59 Eiffel Towers
• 6300 km of pipe erected - Srinagar to Kanyakumari and back
• 14 million engineering man-hours, engineering performed over 20 locations globally
• 1,200 million construction man-hours
• Vast variety of complex materials of construction to handle temperatures from (-)1900C to (+)1,4800C and pressure ranges from
2017-18
8,16,348
65
2016-17
7,12,339
65
vacuum to 120 atm
Key Manufactured Capital Outputs
Petrochemical production
Gross refining margin
No. of stores operated (Retail)
Coverage area (Retail)
No. of fuel outlets operated
Total spectrum footprint (uplink + downlink)
During the exit quarter, average data consumption on Jio is 9.7 GB/month/user
Crude throughput of 69.8 MMT
Jio is the world’s largest mobile data consumption and VoLTE network
Integrated ‘farm-to-fork’ model that includes 47 collection centres
350 million footfall in Retail Store
Key Manufactured Capital Outcomes
1.5% of world’s transportation fuel processed
Enabling and creating digital ecosystem for India
Refinery utilisation levels during the year remained above 5 year average
Jio is world’s largest and fastest growing mobile data network with > 81% of total industry 4G data traffic
30.8 MMT
US$ 11.6/bbl
7,573
17.7 million sq. ft.
1,313
24.9 MMT
US$ 11/bbl
3,616
13.5 million sq. ft.
1,221
1,108MHz
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 133
Hital R.
Meswani
Pawan Kumar
Kapil
B Narayan
Paramjit Singh
Deepak Datta
Ravinder Batra
A. Srinagesh
Lalit Kasliwal
United Nations’ Sustainable Development Goals
PMO’s initiatives supported by the
NITI Aayog:
• Make in India
• Digital India
• Atal Innovation Mission
Key highlights of the year:
• World’s largest off gas cracker &
downstream PE and MEG units
• Largest PX project globally
• Refinery utilisation levels during the year
remained above 5 year average
• Pan-India 4G-LTE across 800/ 1800/ 2,300
MHz bands
Integrated Annual Report 2017–18Management’s Discussion and Analysis 134
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 integrates
data from various systems with process expertise enabling
proactive and intelligent manufacturing decisions in
dynamic environments. Smart manufacturing technology
also aids the Company to improve its performance in terms
of integrity, reliability and effectiveness of business and
manufacturing operations.
With the availability of vast amount of operational data and
big data technologies, RIL initiated the development and
implementation of Industrial Internet of Things (IIoT) based
solutions for realising “last mile” of optimisation across its
manufacturing facilities.
Mobility applications and robotics technology are few
examples of RIL’s several other initiatives that are being
developed and tested in manufacturing operations. The
Company is co-developing these solutions in collaboration
with several research organisations and premier educational
institutes. RIL has already leveraged existing practices using
smart manufacturing technology including:
1) Use of robotics for high-risk jobs such as catalyst loading
in inert atmosphere
2)
Development and implementation of smart pressure
testing methods using wireless protocol. This minimises
risk in addition to improvement in operational efficiency
3) Use of drones for inspection of inaccessible positions
such as flare tips, pipe racks and cable tray, emergency
situation evaluation
• Smart sensors and control elements
• No touch, remote operation, paperless manufacturing and
4)
workflow execution
• Advanced predictive and perspective analytics to predict
future performance and alert equipment failure
Implementation of new technologies in Rotary/
Inspection and corrosion monitoring:
• Early event detection for rotary equipment
•
Developed and deployed thickness measurement and
corrosion monitoring methods for static asset reliability
Reliance is enhancing the skills of its internal domain experts
in the fields of data science and IIoT. These experts are
being trained on analytical platforms, machine learning and
AI algorithms, and programming languages. These newly
acquired skill sets coupled with domain expertise are applied
in prescribing the solution for process performance and
equipment health improvement. The Company is working
with its partners to have its own manufacturing data
platform so as to enable elimination of data latency and drive
quick adoption of big data analytics. This will allow efficient
application of new ideas to meet ever-changing business
requirements. The Operator Training Simulator (OTS) at
Reliance has enabled all greenfield and most brownfield
plants to train engineers on smooth start-up, shutdown and
handling of abnormal situation. RIL has also piloted Virtual
Reality (VR)-based technology for training.
5) Real-time control loop assessment and performance
insights to improve process stability and minimise
operating cost
6) Machine learning based solution for prediction of
equipment and process health to take corrective/
preventive actions for any future performance
deterioration
In addition to development of in-house solutions, RIL is
developing an ecosystem to integrate smart manufacturing
solutions along with technology partners. This includes the
support of infrastructure available through Jio network and
Jio cloud. With this initiative, RIL is not only optimising its
own process, but also contributing towards the inclusion of
other small scale industries (SMEs) in the journey.
Machine learning & data analytics
Action Taken:
Hybrid models using
machine learning (ML) and
artificial neural network
(ANN) algorithms coupled
with engineering principles
were developed to predict
the run-length of a furnace.
The tool also provided
diagnostics for Overall
Equipment Effectiveness
(OEE), energy usage,
prescriptive analytics for
process improvement and
avoidance of unplanned
shutdown.
Outcome: The turnaround
planning, resource
optimisation and inventory
management of the furnace
were improved.
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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 diagram below:
Principle of RIL Secured Connected System
Real -time
Sensors and
systems
Insight into
operations
Connected
RIL SCS
Secured
Learning
through
Advanced
Analytics
Research:
Infrastructure: Jio Ground
Based Mast
Chemical:
New Catalyst Development
Catalyst:
Spent Catalyst
Product:
Complex Product
Technology
Application:
Ground based mast
structure occupies
lesser space compared
to conventional towers,
reduction in size by 5X
RIL’s catalyst is a unique
four component system
metal salt, ligand, and two
co-catalysts eliminating
dependency on the
external licensor
Extensive collaboration
with regenerators &
catalyst vendors to ensure
optimum performance
from regenerated catalyst
Scientific innovations
in Polyolefin catalyst
and product technology
by R&D team with Prof
Grubbs- Nobel Laureate
Outcome:
Transition from a smart buyer of technology to a fast customiser of technology and a flagship developer for
complex process with potential of licensor technology
Integrated Annual Report 2017–18Management’s Discussion and Analysis 136
Switching spinneret cleaning from a
hazardous to a safer process
Outcome:
Process safety and risk
reduction.
Action Taken:
A new system for cleaning
the spinnerets in the
system was developed
and commercialised that is
safer, eco-friendly & cost-
effective.
Digitisation
Within manufacturing operations, RIL has begun the journey
of creating a digital manufacturing platform with the
objective of providing near real-time business insights to
end-users so that they can take fast and effective decisions
through a common and intuitive User Interface (UI). Going
forward, RIL aims to have all the underlying solutions co-
hosted within the digital manufacturing platform envisaged
along with innovative digital technologies to drive business
objectives and outcomes.
1) Portfolio
RIL has a large portfolio of more than 1,800 applications
being used across various businesses, including world-
class implementations such as 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 state-of-the-art
visualisation software.
2) Collaboration with Industries
RIL is exploring collaboration with industry leaders
such as GE, Honeywell, Siemens, Emerson, Schneider
Electric, among others to build foundation blocks for its
long-term Industrial Internet of Things (IIoT) strategy
and the digital manufacturing platform. Reliance is
building state-of-the-art and fit-to-purpose industrial
applications on the IIoT and analytics platforms
by leveraging RIL’s deep process and operational
experience in the hydrocarbon business and Jio’s 4G
data and communication platform. Through such
collaborations, RIL is co-creating capabilities to add
value to the society and industry.
3) Cyber Security
In today’s connected world, cyber security continues
to be a key area of focus. Many state-of-the-art
technology solutions have already been deployed at RIL
to detect, mitigate and prevent various cyber threats.
It is working to fortify its frameworks and architecture
to bring continuous improvements to its already strong
monitoring, detection, and mitigation capabilities.
During this year, while its petroleum retail business got
Payment Card Industry (PCI) Data Security Standard
(DSS) certified, the petrochemicals business was also
re-certified for ISO 27001.
Applied Technologies:
1) Robotics Process Automation:
RIL has created a highly reliable, fast, accurate, round-
the-clock virtual workforce, propelled by Robotics
Process Automation (RPA) technology. RPA has been
successfully deployed across functions such as HR,
Finance, Procurement and others for various repetitive
and monotonous tasks performed by individuals
resulting in improved operational efficiencies. Chat
bots have enabled to increase vendor engagement and
accurately addresses vendor queries on status of orders,
payments and so on.
2) Augmented Customer Experience:
A new Supply Chain Management (SCM) transformation
programme “Augmented Customer Experience” (ACE)
to enhance customer experience based on voice of
customers and enable value added services is currently
under way. A desired outcome of this programme is to
strengthen Customer Relationship Management (CRM)
by enhancing agents and customer experience through
dashboards and mobile applications. This initiative will
enable integrated business planning through advanced
analytics, better supply planning and execution, and
thus to higher customer service levels. Fleet Risk
management dashboard through machine learning
solution leveraging IoT technology was implemented
to minimise the risk for the captive and external fleets.
Umpteen sensors fitted into the fleet collect various
data points which in turn are used for analysis and risk
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management. This is expected to give insights into
various parameters of logistics fleet management.
E-seal (Electronic Seals (RFID Seals)) auto updating in the
vendor portal uses BOTS as part of statutory compliance
requirement by Indian customs for export movement.
Bulk uploading of excel based data on vendor portal is
also automated using BOTS technology.
• 14 million engineering man-hours: More than J1 & J2
combined. Engineering performed over 20 locations globally
• 1,200 million construction man-hours: 60% more than J1 &
J2 combined
• Peak manpower mobilisation of about 1,50,000
• 7,261 equipment erected flawlessly with some of complex
3) Reliance Project Management Group (RPMG):
heavy lifts
RPMG has successfully executed the third phase of the
Jamnagar Refinery Expansion project – J3. As a part
of digitisation initiatives at RPMG, a strategic initiative
was taken up to develop an Integrated Framework (IFW)
with a focus on “end-to-end digitisation” from FEED
to Operations. Advanced technologies of Integrated
Engineering data using SmartPlant 3D model, intelligent
P&IDs and 2D are leveraged to build plant assets. The
J3 project leveraged integrated data availability using
dashboards which helped in effective task execution,
project planning and reporting. Advance data analytics
and machine learning algorithms helped to monitor
project KPIs and help set new benchmarks for future
CAPEX projects.
4) Smart Contract:
Blockchain as a technology is currently being explored
to enter into smart contracts with customers and
vendors for instant matching and settlement processing
on blockchain connected platform, eliminating
intermediaries.
5) R-Cash:
Petroleum Marketing has introduced digital
transformational initiatives, which are first of its kind
in the industry like R-Cash (digital cash management
solution), R-Delight (payment solution for digital),
Manthan (card-less trans-connect fleet application) and
I-Sure (cash loading made easy for fleet customers).
Aligning to the vision of ‘Digital India’, RIL pumps are
accepting multiple modes of payment. RIL’s network
is ready to offer the next generation dynamic pricing
solutions to create unique and convenient options for
RIL’s customers.
Jamnagar Projects
Jamnagar Refinery Expansion Project, one of the world’s
most complex and highly integrated project, is nearly
complete. Jamnagar Refinery Expansions has set a world
record for fast track project execution as the schedules
achieved are substantially better than those accomplished
for similar projects worldwide. The project has re-defined
refining and petrochemicals integration and extracting more
value from bottom of the barrel products. PX project has
resulted in a seamless transition from net importer to net
exporter of Para-Xylene.
• Peak P&M deployment of 10,000 including some of the
largest capacity cranes in the world
• Typically, stabilisation period for ROGC projects is 6 months;
this was achieved in less than 30 days at Jamnagar
• Plants in ROGC complex are currently operating higher than
design capacities. ROGC has one of the lowest ethylene
costs globally
• Vast variety of complex materials of construction to handle
temperatures from (-)1900C to (+)1,4800C and pressure
ranges from vacuum to 120 atm
Emerging Technologies:
Reliance recognises opportunities in artificial intelligence,
machine learning, big data analytics, IIoT, blockchain,
3D printing, artificial intelligence, virtual reality, among
others and has been hard at work setting the stage to build
institutional competencies in these areas.
1) Virtual Reality (VR):
RIL is piloting Virtual Reality (VR) through a virtual
walkthrough plant environment for interactive training,
testing, and process simulation of all critical plant
personnel so as to increase safety and reliability.
2) 3D printing:
3D printing will be an important component of the
RIL’s 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 in
manufacturing.
3) Analytics platform:
RIL is implementing a world-class analytics platform
and a data lake using the best-in-breed technologies for
its big data initiatives. RIL has also developed extensive
in-house expertise in programming languages such as
R, Python, and big data technologies such as Hadoop,
Cassandra among others. Multiple advanced stage pilots
are being done to establish extensive use of machine
learning and artificial intelligence use cases with a view of
long-term adoption and institutionalisation.
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138
4) Cloud First, Mobile First:
True to RIL’s vision of a “Cloud First, Mobile First”
organisation, RIL employees can securely access
transactional, analytical, and informational capability
on their mobile devices anytime and anywhere, thus
improving productivity, response time, safety and
operational reliability.
At RIL, the need to leverage both internal and external
sources of information to identify and create value-
generating opportunities has been recognised. The RIL IT
team, through a combination of motivated and engaged
talent and an eco-system of technology partners, is well
positioned to enable the RIL digital journey.
RIL is developing a partner ecosystem to successfully
implement smart manufacturing solutions. This includes
the support of infrastructure available through 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.
Product Stewardship
Reliance embraces product stewardship by reducing the
environmental, health and safety impacts of products
throughout their lifecycles. The three key categories
of products that the Company manufactures are –
transportation fuels, polymers and polyester fibres. By
setting a uniformly high standard for product development
and going beyond regulatory requirements, Reliance
proactively ensures that its products positively impact the
environment and society at large. Product stewardship
initiatives undertaken in FY 2017-18 are listed below:
Refining & Marketing
RIL continuously focusses on debottlenecking, capacity
enhancement, yield and product quality improvement
to enhance its competitive strengths. Examples of such
initiatives include:
• Euro VI capable refinery
• Energy conservation initiatives to minimise fuel consumption
were implemented
Petrochemicals
Polymers
• Reliance’s geotextile products started being used in
stabilisation and ground improvement of roads
• A breakthrough was achieved for usage of impact Co-
polymer Polypropylene (PP) in mud liner of vehicles
Polyesters
• Reliance launched a range of future fabrics under the brand
R|Elan™ that includes inherent moisture management
mechanism, limits bad odour, is suitable for both formal and
casual wear, and has one of the lowest carbon footprints in
the world.
Advanced Material, Composites and 3D Printing
• Reliance has entered the world of composites, materials that
can deliver exceptional performance in terms of strength,
durability and corrosion resistance at significantly lower
weight compared to steel.
• Using the technology of 3D printing, Reliance has developed
capabilities to design and print a wide range of plastic and
metal products, from prototypes to functional parts.
Exploration & Production
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. Some of the innovative measures are as follows:
1) Upgrading systems and technologies in light of
upcoming deepwater development projects.
R|Elan™ - Smart Fabric 2.0
Advanced Material
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139
GCS apex leadership comprises a multidimensional and
diverse range of experts, including veterans from the military
& paramilitary forces, law enforcement agencies, intelligence
services, as well as technical experts from the industry. To
ensure a high-quality leadership pipeline, GCS operates the
Reliance Security & Risk Management Academy (RSRMA),
a first-of-its-kind training institution in India. Dedicated to
producing world-class security professionals, the academy,
set up in 1998, has trained more than 900 security officers
thus far.
Aided by a cutting-edge technology solutions team, GCS
stands out as the only organisation in the country to host
the largest security workforce, comprising 20,000 security
personnel. Today, GCS provides security cover to the
Jamnagar Refinery, 16 major petrochemical manufacturing
sites in India and supports Telecom and Retail businesses
across 29 States and 7 Union Territories.
To fulfil its mandate of preventive and proactive risk
mitigation, GCS employs a future-ready “de-risking”
framework, leveraging national capacity, and ensuring net
value for all stakeholders. Other salient security services
provided by team GCS include – threat and risk assessments,
intelligence & vigilance, asset protection, and technology
solutions.
2) A strong foundation for ‘data-driven decisions’ is being
laid through the use of open stack technologies, OEM
software stack and big data analytics technologies.
Jio
Jio’s state-of-the-art digital services network enables fast
internet connectivity, high-quality communication services
and rich digital services.
• It is the only network conceived as a Mobile Video Network
from the ground up and supporting Voice over LTE (VoLTE)
technology
• Play along platforms on JioChat are an innovative
engagement tool
Retail
• In FY 2017-18, Reliance Retail focussed on innovation in new
store concepts such as Project Eve and Trends Woman and
online channels to meet customer expectations.
Media
The various initiatives undertaken in the media business in
FY 2017-18 were:
• Live streaming, podcasts, video-on-demand, and others
through moneycontrol app
• News18.com introduced in 5 new languages
Global Corporate Security
Global Corporate Security (GCS) is a distinct function of RIL
mandated to de-risk, safeguard and secure India’s largest
private sector company. GCS officers are engaged round-
the-clock towards safeguarding RIL’s people, assets &
operations, ensuring business continuity at all times, and
reducing the cost of doing business.
Reliance Retail Store
Security team at Jamnagar
Integrated Annual Report 2017–18Management’s Discussion and Analysis 140
Financial Capital
“Reliance is always focussed on improving shareholder returns by
maintaining an optimal capital structure. The Company has significantly
enhanced its operational performance by establishing prudent risk
management framework. Reliance ensures access to funding to meet
its operating needs and strategic objectives while securely and reliably
managing its cash flows in a cost-efficient manner.
Reliance actively explores opportunities to optimise the cost of borrowing and aligns the maturity profile of its existing
debt portfolio with its business strategy. Reliance retained its domestic credit ratings of ‘CRISIL AAA’ from CRISIL and
‘IND AAA’ from India Rating and an investment grade rating for its international debt from Moody’s as Baa2 and BBB+ from
S&P. Cash generated through its operating activities remains the primary source for liquidity along with undrawn borrowing
facilities and levels of cash and cash equivalents.”
Key Performance Indicators
Key Financial Capital Inputs
Capital expenditure
Key Financial Capital Outputs
Revenue
PBDIT
Paid up capital
Profit after taxes
Debt-Equity
*Return on Capital Employed (%)
Key Financial Capital Outcomes
Market capitalisation
CAGR of market capitalisation since IPO (%)
Domestic credit rating
Investment grade rating for its international debt
*Standalone
United Nations’ Sustainable Development Goals
FY 2017-18
79,253
4,30,731
74,184
5,922
36,075
0.75
28.7
5,59,223
31.4
(` in crore)
FY 2016-17
1,14,742
3,30,180
55,529
2,959
29,901
0.75
25.4
4,28,909
31.5
‘CRISIL AAA’ from CRISIL and
‘IND AAA’ from India Ratings
Baa2 from Moody’s and BBB+ from S&P
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice Social and Relationship Capital
141
P. M. S. Prasad
Jagannatha Kumar
“RIL’s ambition is to create more societal value through creating more
and more opportunities - directly and indirectly for the wider society.
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 strives for social innovation through its products and services to ensure sustainable and inclusive growth. With the launch
of digital services, the society is at the inflexion point realising fruits of fourth industrial revolution – the power to enjoy higher
standard of living with abundance of resources at affordable prices for benefit of entire society.
The Company will continue to work with every strata of the economy to benefit the society, industry and ultimately, the nation.”
Key Performance Indicators
Key Social and Relationship Capital Inputs
*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
Spent on indigenous suppliers
CSR expenditure
Total number of startups supported
Reliance Foundation’s outreach spread across India for various social responsibility initiatives
Partnerships for change with various organisations
Key Social and Relationship Capital Outputs
Total villages impacted
Urban locations
Total number of Jio subscribers (million)
Reliance Retail has a portfolio of over 40 international brands
Created an ecosystem of digital startups within the country and directly engaged with 80 startups
7,573 Retail stores in over 4,400 cities across the country
Key partnerships with governments, like-minded NGOs, suppliers
*Standalone
#Dividend recommended for FY 2017-18 is `4,281 crore, including `728 crore as dividend distribution tax.
FY 2017-18
56,997
39,639
7,958
4,740
3,553
745
1,13,632
14,070
771
29
(` in crore)
FY 2016-17
51,399
36,635
5,575
4,434
3,255
659
1,01,957
14,341
674
29
13,500+
100+
186.6
12,500+
74
108.9
Integrated Annual Report 2017–18Management’s Discussion and Analysis 142
Key Social and Relationship Capital Outcomes
Community outreach of Reliance Foundation is more than 20 million
`60,000 crore in annual savings for Indian consumers due to rise in affordability of data prices pioneered by Reliance Jio1
Market capitalisation crossed `6,00,000 crore
Shareholders’ money has doubled every two and a half years, for the last 40 years
Enabler to the Fourth Industrial Revolution
1Source: Institute for Competitiveness
United Nations’ Sustainable Development Goals
PMO’s initiatives supported by the
NITI Aayog:
• Support to training and employment
programme (STEP)
Key highlights of the year:
• 9 startups graduated from JioGenNext and
won the ‘Hot 100’ awards for technology
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.
Reliance’s relationships with the startup ecosystem,
suppliers, government authorities, academia and other
institutions, is addressed in this section. For details about
all other stakeholders (customers, employees, local
communities and NGOs), refer the individual business
sections, Human Capital section, and CSR Report.
RIL believes that good corporate governance can be
achieved by effective stakeholder engagement. Hence,
through frequent engagement and established processes
RIL develops a robust understanding of stakeholder
expectations and is able to foster strong relationships with
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 143
them. For more details on identification of stakeholders,
frequency of engagement and key priorities of stakeholders,
refer to the RIL Sustainability Report at www.ril.com.
JioGenNext Hub: A Unique Start-up Ecosystem
India is the third largest startup ecosystem in the world. It
has 25,000 plus startups and the number has grown 270%
in the past six years. By 2025, India is slated to become
the second largest startup ecosystem with an estimated
1,00,000 startups, which will employ over 3 million people
and impact 30 million SMEs with advanced tools and
technologies.
During the year, JioGenNext received 3,000+ applications
from startups and aspiring entrepreneurs in India across
its two cohorts – of which 29 startups made the cut to
be selected in India’s most coveted corporate venture
programme.
Since 2014, JioGenNext has been mentoring and advising
startups on various areas of business – product roadmap,
customer discovery, go-to-market strategy, customer
acquisition & engagement, talent hiring, pitching and fund
raising.
JioGenNext is a bridge for startups to explore various
engagements with Reliance business units in the form
of pilots, commercial partnerships, joint GTM, strategic
investments or a combination thereof.
Key Metrics
6
80
30+
6,000+
Cohorts till date
Startups selected
Engagements with RIL
Applications from startups and
aspiring entrepreneurs
75+
Mentors
JioGenNext, through its unique model of ‘Customer–as-a-
Mentor’, enables startups to launch their business in the Jio
and RIL ecosystem at scale and grow with the rapid growth
of Reliance. Over the past four years, it has perfected this
model by closely engaging with all the relevant stakeholders
in the RIL and Jio ecosystem. The uniquely designed
‘mentorship’ programme for startups includes features such
as regular pitch sessions, planning and execution of Proof-of-
Concepts, measuring results and discussing improvements
in the roadmap so as to achieve product-market fit. This year,
JioGenNext has integrated 10+ startups within the Jio, RIL
ecosystem for long-term partnerships.
JioGenNext is a structured six-weeks immersive programme
spread across 18 weeks, which apart from providing startups
with access to RIL leadership and domain experts, also offers
state-of-the-art co-working space, technology partnerships
with global companies like Microsoft, Google, Facebook,
etc., external ecosystem mentors and most importantly an
opportunity to test, validate, launch and scale their business
in Jio/RIL.
JioGenNext is focussed on startups operating in the
following three areas of strategic interest - Digital Consumer
Services, Enterprise Solutions and Retail & Logistics. The
sectoral break-up of the 80 startups engaged so far is as
follows - 34 in Enterprise Solutions, 30 in Digital Consumer
Services, and 16 in Retail & Logistics sector.
This year, JioGenNext ran two cohorts – Cohort 5 (11
startups) and Cohort 6 (18 startups) with a total of 29
startups. The industry network has strengthened to a
staggering 75+ mentors and 20+ active partners
during the year.
Pillars of JioGenNext – Talent, Technology and Trust
Talent: JioGenNext looks for passionate and technically
gifted individuals and nurtures their talent to become
pioneers in their respective fields. This is done through
one-on-one mentoring sessions with distinguished
leadership of Reliance and external mentors who are subject
matter experts. JioGenNext is Reliance’s gateway to build a
talent pipeline for the next disruptive technologies.
Technology: JioGenNext is focussed on engaging with
entrepreneurs who are building disruptive businesses
using some of the most powerful technologies like Artificial
Intelligence (AI), Machine Learning (ML), Blockchain,
Augmented Reality/Virtual Reality, Big Data Analytics,
Internet of Things (IoT), Robotics & Drones, India Stack,
Home Automation, and Advanced Materials, among others.
JioGenNext backs entrepreneurs with deep technical
Enguru
LegalDesk
Action Taken:
Through Jio phones Enguru
app was adapted, to help
millions of Jio customers
learn English at the comfort
of their home
Outcome/progress: Enguru
app increased its reach by
5,00,000+ users in less than
a week.
Action Taken:
To digitise the legal
documentation and
contracting process in
Reliance.
Outcome/progress:
It is being piloted by
administrative departments
of RIL for robustness under
various conditions and
use-cases.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 144
knowledge and capability, and helps them with business
mentoring to ensure they build sustainable products and
businesses.
Trust: JioGenNext stands for trust between start-ups and
Reliance. It has fostered a trust-based ecosystem to ensure
a mutually win-win situation for all ecosystem entities. As a
strategic scalerator platform, JioGenNext is able to facilitate
discussions and transactions as a neutral party.
For more information, please visit www.jiogennext.com
Responsibility towards Suppliers
The Company’s vendors are globally reputed and leading
Indian corporates. Most of these corporates have their
own sustainability programmes in place and disclose their
sustainability initiatives publicly. Its contractor base includes
top performing engineering/supervision companies,
construction companies, installation and commissioning
service providers, joint ventures
and consortia.
RIL’s Supplier Code of Conduct strengthens its relationship
with its suppliers. It reflects RIL’s belief in its suppliers to
achieve and adhere to Reliance’s core values, and comply
with labour, human rights, health & safety, environmental
protection, business integrity and confidentiality laws and
standards. Consequently, Reliance conducts a rigorous
screening process for registration and evaluation of all
suppliers. Suppliers’ site visits are a regular part of the
procurement team’s responsibilities.
RIL has procured goods and services (non-crude/non-
feedstock) worth over `14,070 crore from indigenous
suppliers. Through sustained investment in mega projects
and operations, RIL has developed India’s chemicals and
engineering supplier base. Today, leading Indian engineering
companies, raw material companies and industrial goods
companies are RIL’s long-term vendor partners. Currently,
majority of RIL’s suppliers and contractors are India based. RIL
supports and encourages its suppliers to indigenise and to
expand their capabilities and increase their economic value.
RIL’s manufacturing sites act as an economic nerve centres
for nearby communities and businesses. The Company
ensures that it engages local villagers and small businesses
around its areas of operation in productive employment,
especially through vehicle hiring, material handling,
housekeeping, waste-handling and horticulture contracts.
Some of these vendors have been serving the Company for
the past two generations.
Sustainable Sourcing
RIL’s sustainable sourcing is aimed at social progress,
economic development and reduces environmental
impacts by contributing to five strategic focus areas:
Energy Management, Environment Responsibility, Product
Stewardship, Occupational Health and Safety and Social
Institution Building. RIL’s sustainable sourcing ethos
focusses on nine key parameters:
• Green packaging
• Environment protection
• Regeneration/Safe disposal
• Contract worker care
• Community support
• Supplier collaboration
• Make In India and development of India’s engineering talent
• Learning through P&C academy
• Digitally stitched Procedure to Pay (P2P)
The Company has adopted RC-14001, an 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.
The Company has adopted sustainable sourcing practices such
as local vendor engagement, digital invoicing, contractor care
and supplier query redressal. RIL’s determination to reinforce
local manufacturing, will help bridge the gap between robust
domestic consumption and constrained supply, thereby leading
India to become self-sufficient.
Digitally Transformed Procure to Pay Cycle (P2P)
Globally, the procurement functions are transforming
themselves to achieve a digital platform based P2P. RIL has
embarked on a journey to make P2P Cycle more predictive,
stakeholder (suppliers and internal customers) relationship
management more proactive and transactional procurement
more automated. Reliance’s technology architecture aims
to achieve ‘Touchless P2P’. It is imperative that leading
emerging technologies such as IoT, Blockchain, Machine
Learning, Big Data, 3D printing are leveraged to ensure
maximum benefits.
Partnerships for change
Government and other global institutions
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
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 145
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).
RIL understands the importance of interacting with various
stakeholders to mobilise actions required to protect the
environment. Consequently, in a one-of-a-kind partnership
with the Ministry of Environment, Forests and Climate
Change (MoEFCC), Government of India (GoI) and the
Gujarat Ecological Commission (GEC), the Company actively
contributed to the set up of India’s first Centre of Excellence
(CoE) for the study of the coastal biodiversity of
Jamnagar known as the National Centre for Marine
Biodiversity (NCMB).
Businesses
Hydrocarbons
RIL and BP formed a transformational partnership in the
oil and gas sector. The partnership aims to combine BP's
deep-water exploration and development capabilities with
Reliance's exceptional project management and operations
expertise.
RIL is exploring collaboration with industry leaders such
as GE, Honeywell, Siemens, Emerson, Schneider Electric,
and others to build foundation blocks for its long-term
Industrial Internet of Things (IIoT) strategy and the digital
manufacturing platform. Reliance is building state-of-the-
art and fit-to-purpose industrial applications on the IIoT and
analytics platforms by leveraging RIL’s deep process and
operational experience in the hydrocarbons business.
RIL has two joint ventures in North American shale plays with
Pioneer Natural Resources and Chevron.
Retail
Reliance Retail has emerged as the partner of choice
for international brands and has established exclusive
partnerships with many revered international brands. 7 out
of 10 premium international fashion brands have partnered
with Reliance Retail. Retail operates the largest portfolio
of international retail brands in India with over 40 brands
that span across the entire spectrum of luxury, bridge to
luxury, high–premium and high–street lifestyle. Reliance
Brands further strengthened this presence by acquiring
46.6% equity stake in Genesis Luxury Fashion Pvt Ltd, which
operates a rich portfolio of brands such as Armani,
Hugo Boss, Michael Kors and many others.
Digital Services
Jio, along with its business partners, is focussed on making
all components of the digital value chain available to its
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. Other
strategic partnerships like Saavn, Embibe and Eros Media
further enable Jio to enrich the customer experience, while
enhancing the digital ecosystem.
Academia Partnerships
Reliance ‘Industry to Academia Programme (ITAP)’ bridges
the gap between academic excellence and the needs of the
industry by connecting students from universities with the
industry. ITAP has 35 subject experts and engages across
13 subjects. More than 80% of students feel that this
programme will help them apply their classroom
knowledge in professional work. Digitised platforms are
extensively used for material sharing and the same is
constantly evolving.
Reliance University
Reliance is working towards establishing a globally
benchmarked, multi-disciplinary university in Maharashtra.
It will provide an enabling environment and cutting-edge
research facilities to students.
Reliance partners with ISRO – ‘Make in India’
Action Taken:
ISRO gave quality clearance
to the first master batch
of Hydroxyl Terminated
Poly-Butadiene (HTBP) resin,
a fuel binder produced by
Reliance, for use in rocket
launch. The resin was tested
in rockets and the batch was
accepted.
Outcome: This activity
contributes to fuel India’s
space efforts.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 146
Connected by purpose
Jio is a disruptor. It has catalysed India’s digital adoption with a network that is uniquely designed to support multimedia
content and unparalleled customer experience.
A study shows that Jio has led to US$10 billion in annual savings for India, a per capita expansion of 5.65% in GDP and
an unparalleled increase in data consumption*. Further, within six months of operations, the network had enabled India
to catapult to the rank of the highest mobile data user in the world. Such unprecedented success by a digital network is
attributable to its ability to make broadband and digital services accessible to every nook and corner of the nation through its
sheer affordability. Jio has touched a billion lives, opening up a world of possibilities and opportunities for its customers.
* Source: Institute for Competitiveness, 2018
Opening the window to Tadoba
Thanks to Jio, Hans Dalal, a noted tiger conservationist,
could leapfrog the villages around the Tadoba Andhari
Tiger Reserve (TATR) in Maharashtra from digital
darkness to 4G. His letter to Smt. Nita M. Ambani
(Founder Chairperson, Reliance Foundation) saw all
seven villages in the Moharli region of TATR get digitally
connected within a month.
Finding one’s own voice
Rameshwar, who hails from Jalna, Maharashtra, does
not let his speech impairment come in the way of living
a full life. With the need to communicate through sign
language, Jio’s video calling facilities help him stay
connected even with those who are far away.
Fishing for good times
After being trained by Reliance Foundation on the use
of GPS devices and being helped to buy a mobile device,
Balagam and his crew were able to save time and money
as they now had easy access to information on potential
fishing zones along with regular Sea State Forecast.
Giving wings to dreams
Reliance Foundation’s toll-free helpline, powered by Jio,
enabled Priyanka to connect with the outside world and
send out her application for higher studies. A resident of
Dundi Sarrai village, she got admission in a Government
recognised university free of cost; without adding any
additional burden on her poor parents.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 147
Jio – World’s largest and fastest
growing mobile network
Data consumption of 9.7 GB per user per
month in exit quarter
Jio the only network to deploy
Pan-India 4G
across the 800MHz / 1800MHz /
2300MHz bands
Growing better
With the easy availability of information services through
a Jio-powered phone, Nudigoppala was educated on the
timely application of suitable fertilisers and chemicals,
enabling him to reduce expenses and increase his yield as
well as revenue.
Fodder for thought
When Dhirendra Nayak needed a way to reverse the
situation where his Jersey cows were not producing
optimum volume of milk, the information he garnered
through the internet helped him. He was able to get
advice on fodder management as well as on proper
care and treatment of cattle, all of which gave him more
success in his business.
The fearless traveller
The Jio revolution is keeping people connected anytime,
anywhere. A common scene in the trains nowadays is of
passengers on video calls. Affordability and seamless
connectivity have taken the fear away from roaming
charges.
Breathing life into art
For master weaver Haji Hasin Mohammed, Jio has
breathed new life into his business. The display window
for his product has now shrunk to his smartphone
screen. With the Jio network making data affordable and
accessible, he is able to reach out to his clients easily and
in real-time. Almost 75% of his orders are now through
the digital medium.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 148
Enabling the Fourth Industrial Revolution
Reliance is making its humble contribution in societal transformation both within its businesses, and by enabling various
systems in society such as start ups, research and technology, CSR, platforms, digital enablement for all, etc.
Key Trends
Overall
Presence
R&D
Reliance Presence
Digital Presence
Growing business impact through online and wireless technologies
Wearable Internet
Connected (AR/VR) devices to enhance individual experience
Ubiquitous Computing
Affordable and regular access to the internet
Storage for All
Full commoditisation of storage, through unlimited access
The Internet of Things
Interconnection via Internet of computing devices embedded in everyday objects
Smart Cities
Digitally enabled cities that manage resources efficiently
Big Data for Decisions
Analysis of data for improved decision making
Smart Cars
Advanced electronics to improve overall the transportation experience
Artificial Intelligence and Decision-Making
Intelligence demonstrated by machines that learn from data
Robotics and Services
Using machines to deliver result in shorter duration
Blockchain and its Application
An open, distributed list of records to secure transactions between two parties
The Sharing Economy
Facilitate peer-to-peer sharing of goods and services
3D Printing and Its Application
Process of creating physical objects from a digital design
Biotechnology
Use of living systems and organisms to develop products
Implantable Technology
Technology embedded inside body for physical and digital improvement
Advanced Material
Material with exceptional performance in terms of strength, durability and erosion
Information and entertainment
Deliver customised content anytime, anywhere
Circular Economy
Regenerative economic models that utilise waste and create no negative
environmental impact
Supercomputers in your pocket
Increased computing power of smaller, affordable devices
Jio enabling India’s digital ecosystem
Training through VR simulation
Platforms infrastructure & RFID tracking
Physical and Digital Assets for storage
IIoT based predictive analysis
Infrastructure in Townships
Predictive and perspective analytics
Jio Router converts any car into a smart car
Algorithms in refinery and L&D platform
Robotics Process Automation across
functions
Smart contracting & invoicing
Impact of Digital Assets – Jio and Media
Designing and printing plastics and metal
products
Algae to Oil, Bio diesel: R&D
H N Hospital using advanced technologies
to save lives
Several Petrochemicals and R&D products
Jio, Media presence across multiple
platforms
Waste to value products
Jio Apps and phones
Global leadership
Where Reliance itself
is leading the change
Enabler for game
changer
Reliance is providing/
using assets to enable
the larger societal
change
Towards next-
generation leadership
Taking steps towards
leadership in the
technology
Breakthrough
Significant
Collaboration
Leaders of change in
this technology
Significant progress in
in-house R&D
Working with
stakeholder to enable
transformation
Reliance is a leader or an enabler across all the key industrial revolution trends. Additionally, for most of these trends, Reliance
is also enabling multiple start-ups in preparing for the Fourth Industrial Revolution.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 149
Reliance’s Sustainability Reporting Journey
RIL has been publishing Sustainability Reports annually since
FY 2004-05 based on the Global Reporting Initiative’s (GRI)
reporting guidelines. For the last decade, the reports have
been GRI checked with an ‘A+’ application level.
Furthermore, the Company published its first sustainability
report according to GRI Standards’ (including Oil and Gas
sector disclosures) ‘In accordance – Comprehensive’ option
which was introduced in FY 2016-17. The report has been
externally assured (Type-II, High Level) indicating highest
level of comprehensive disclosures for GRI Standards.
RIL is a member of World Business Council of Sustainable
Development (WBCSD) and Global Reporting Initiative (GRI).
WBCSD’s ‘Reporting matters’ 2015 & 2017 has recognised
RIL’s sustainability report as a leading example on aspect of
‘Reliability’. The reports are available at http://www.ril.com/
Sustainability/CorporateSustainability.aspx
In addition to GRI and IR frameworks, this year’s Integrated
Annual Report respects the following 12 frameworks:
1) United Nations Sustainable Development Goals (UN
SDGs),
2) American Petroleum Institute/The International
Petroleum Industry Environmental Conservation
Association (API/IPIECA),
3) United Nations Global Compact (UNGC) Principles,
4) Business Responsibility Framework based on the
principles of National Voluntary Guidelines on Social,
Environmental and Economic Responsibilities of
Business (NVG - SEE),
5) World Business Council for Sustainable Development’s
(WBCSD’s) focus areas,
6) Greenhouse Gas (GHG) Protocol,
7) Task Force on Climate-related Financial Disclosures
(TCFD) recommendations,
8) Natural Capital Protocol (NCP),
9) United Nations Guiding Principles on Business and
Human Rights (UNGP),
10) Social return on investment (SROI),
11) The Global Recycle Standard (GRS) Version 3.0 for
traceability of fibres, and
12) Prime Minister’s Office (PMO) initiatives for
India/NITI Aayog.
KPMG has provided highest level of assurance, please refer
Page No. 194.
Reliance’s Materiality Assessment Approach
As a key strategic focus area, sustainability is crucial to the
delivery of the Group’s strategy and is integrated across
all areas of business. RIL conducts a formal materiality
assessment in accordance with GRI Standards to identify
and prioritise the most significant sustainability topics, set
KPIs and targets for improvement that guide the content
of Sustainability Report. The KPIs and management
approach for identified material topics undergo a monthly
review through the sustainability council, which advises on
improvement measures and action plans. Additionally, an
annual review is conducted by the Board committee.
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. The identification of material issues has been largely
aligned to the Company’s risk management framework and
its strategic approach based on the four areas:
• Strategic and Commercial risks
• Safety and Operations
• Compliance and Control
• Financial risks
Reliance aims to build strong and long-lasting relationships
with its stakeholders through structured dialogues. For more
information on Materiality refer to the Sustainability Report.
Capital
Natural
Human
Intellectual
Social & Relationship
Financial
Manufactured
Material Topic
Energy Efficiency of Operations - Carbon abatement and Offsetting and Managing environmental impact
Talent Attraction and Retention and Health and Safety
Asset Utilisation and Reliable Operations
Community Development and Customer Satisfaction
Economic Performance
Raw Material Security, Supply Chain Management and Security and Asset Protection
Integrated Annual Report 2017–18Management’s Discussion and Analysis 150
Reliance Goals for Sustainable Development
Highlights for FY 2017-18
Linkages to , UNSDG
and PMO’s initiatives
supported by the NITI Aayog
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.
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.
Asset utilisation
Efficient and maximised utilisation of the assets to optimise
energy consumption through operational excellence ensuring
safe and reliable operations. Ensure implementation of best-
in-class technologies for real time monitoring of operational
parameters for safe, reliable and efficient operations.
Opportunity & diversity
As an equal opportunity employer, promote a culture of
transparency, empowerment and meritocracy. Empower women
by advancing opportunities in the Company’s activities and
aspire to achieve 15% women workforce by 2030.
• Over 10 years of safe operations
in E&P
• Installation of mast climbing work
Human Capital
NITI Aayog: Skill India
UN SDGs:
platform
• Stewardship in R&D
Page No. 129
• Set up of ROGC at Jamnagar
Page No. 110
• Stewardship in R&D
Page No. 129
Natural Capital
NITI Aayog: Clean India
UN SDGs:
• Extracting value from bottom of
the barrel
Page No. 110
Intellectual Capital
NITI Aayog: Make in India
UN SDGs:
• Petro Retail throughput is twice
the industry standard
• Constructed the world’s largest
LDPE unit
• Installed the world’s largest
extruder in the LLDPE unit at
Jamnagar
• EURO VI capable refinery
• Use of drone for safety
• Employees from over 15
nationalities
• 40% plus are millennials
• Best-in-class policies for women
Human Capital
NITI Aayog: Digital India
UN SDGs:
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.
• Euro-VI capable refinery
• R|Elan™ Fabric 2.0 with the lowest
carbon footprints globally
• Advanced materials and
composites (e.g. RelWood)
• 1,690 crore GB of data
Manufactured Capital
NITI Aayog: Clean India
UN SDGs:
Customer satisfaction
Aspire to be the most customer-focused company with the
highest customer loyalty.
• World’s largest migration from
free to paid services
• Lowest Churn Rate of 0.25% per
month for digital services
• Launch of project ACE
Social and Relationship
Capital
NITI Aayog: Make in India
UN SDGs:
Managing environmental impacts
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.
• 60,000 tonnes of PET bottles
recycled in a year
• LCA studies for polypropylene
Natural Capital
NITI Aayog: Clean India
UN SDGs:
products
• R&D Stewardship – Algae to oil.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice Reliance Goals for Sustainable Development
Highlights for FY 2017-18
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.
• Transformed lives of 20 million
people
• CSR expenditure of `771 crore
151
Linkages to , UNSDG
and PMO’s initiatives
supported by the NITI Aayog
Social and Relationship
Capital
NITI Aayog: Clean India,
Skill India
UN SDGs:
Waste management
Ensure efficient use of solid catalysts including investment in
development of bio-catalysts to replace solid catalysts.
• Developed advanced ionic liquid
catalysts
Natural Capital
NITI Aayog: Clean India
UN SDGs:
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.
Health
Committed to provide healthcare facilities to all people (on-roll
employees and contract staff) working across all sites at par
with global standards using latest technologies and practices
including maintaining medical history for all.
Water management
Deploy world-class technologies across all sites to reduce fresh
water consumption per unit of production by maximising waste
water recycle and minimising external discharge.
• VLECs shipping ethane from USA
with the lowest carbon footprint
• Warehouse automation
Manufactured Capital
NITI Aayog: Make in India
UN SDGs:
• Best-in-class sports facilities for
employees
• Round-the-clock emergency
medical services to all employees
and family members across the
country through REFERS
• HIV/AIDS awareness and support
programmes at manufacturing
divisions
• 69,364 (‘000 m3) of water
recycled in FY 2017-18
• Total water recycled and
desalination of seawater at
Jamnagar
• Achieved zero water discharge at
Silvassa and Hoshiarpur
Human Capital
NITI Aayog: Healthy India
UN SDGs:
Natural Capital
NITI Aayog: Clean India
UN SDGs:
PMO’s initiatives supported by the NITI Aayog includes:
1) Skill India: Atal Innovation Mission, Support to training and employment programme (STEP)
2) Make in India
3) Digital India
4) Clean India: National Solar Mission, National offshore wind energy policy, National Policy on biofuels, National
environmental policy, National plan for conservation of aquatic ecosystem
5) Healthy India
Integrated Annual Report 2017–18Management’s Discussion and Analysis 152
Risk and Governance
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 risks,
both at the strategic and operational levels. 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.”
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 risks 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
licence 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.
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 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 its business processes and its
governance architecture.
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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
including geopolitical risks, 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.
b) Cyber security risk
As Reliance continues to forge ahead with
digital technology led business process
enablement, it faces an increased exposure
to cyber risks. A digital security breach or
153
disruption to digital infrastructure, due to
intentional or unintentional actions, such
as cyber-attacks or human error could
lead to serious business impact. 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 continues to
strengthen its responses to cybersecurity
threats through proactive and reactive
risk mitigations. These include, proactive
activities to continuously enhance its
cybersecurity policies, standards, technical
safeguards, ongoing monitoring of new
and existing threats and cyber security
awareness initiatives. Reactive responses
to cybersecurity threats, which include IT
disaster recovery, emergency response
and business continuity management
capabilities, enable the reduction of the
impact of a cybersecurity event.
Changes since last year:
The industry continues to witness a
growth in cybersecurity risks, both in
their prevalence and in their disruptive
potential. Breakdown of critical information
infrastructure and networks (Critical
information infrastructure breakdown)
has been identified as one of the top cyber
security risks by the World Economic
Forum (WEF) in its latest Global Risk Report
(2018). It notes that cyber dependency
increases vulnerability to outage of critical
information infrastructure (e.g. internet,
satellites, etc.) and networks, causing
widespread disruption. Large-scale cyber
attacks or ransomware as well as massive
incidents involving data fraud or theft
affecting the organisation or the supply
chain are some of the key cyber security
risks that have the potential to cause
massive economic damages, geopolitical
tensions or widespread loss of trust in the
internet.
Considering the large digital footprint of
Reliance, ongoing efforts are required
Integrated Annual Report 2017–18Management’s Discussion and Analysis
154
to continuously counter these evolving
threats.
Some of the notable measures are:
1)
A Continuous Improvement Program
(CIP) for cyber security that was
instituted across Reliance, to keep pace
with ever increasing threats, has now
been extended to cover the Critical
Information Infrastructure located at
plant operations.
2)
3)
4)
While Reliance routinely conducts
Cyber Security Awareness programs
and ongoing user awareness connect
activities across the Group, remote
plant locations as well as international
operations have also been brought
under this awareness initiative.
Several businesses of Reliance are now
benchmarked against ISO 27001, the
global standard for ISMS (Information
Security Management System)
Retail business operation’s card
payment transaction processing is
now certified to the global PCI DSS 3.2
(Payment Card Industry Data Security
Standard)
c) Jio Customer Experience and Retention
Reliance Jio has now more than 186
million customers following an innovative
customer acquisition strategy. Along with
expansion of its current customer base,
customer retention and experience are
of utmost importance for Jio to generate
sustainable business performance and
return on its investments. Jio is committed
to deliver on a differentiated customer
experience and constant endeavour is to
proactively mitigate any such risks that may
weaken Jio’s value propositions, brand and
customer loyalty.
Mitigation: To successfully capitalise
on Pan-India all IP network, backed by
extensive fiber 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
footprint and digital ecosystem to
expand Jio’s product offerings to
diversify revenue sources and
customer base.
Ongoing investments and operational
excellence in the network infrastructure
contributes to delivering on full
population coverage with superior
customer experience.
Jio Prime Membership Programme: A
loyalty programme that not only offers
most competitive monthly tariff plans
in the industry, but also many other
attractive deals and offers from both Jio
and its partners to ensure retention and
loyalty.
Jio pricing and tariff strategy
focuses on continuous innovation on
products/service offerings keeping
various customer segment needs,
requirements and affordability. The
offerings are always benchmarked with
best value and quality service assurance
vis-à-vis competition.
Changes since last year:
There have been no significant changes in
the nature of the risk exposures over the
last 12 months.
II) Safety and Operational Risks
a)
Health, Safety and Environmental (HSE) risks in
Operations
Reliance is exposed to a wide spectrum of HSE
risks, given the diversity and complexity of
the industry, it operates in. The exploration
& 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. Furthermore,
Reliance believes that all injuries, occupational
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illnesses as well as safety and environmental
incidents are preventable. Reliance focusses
on process safety management as a key area
to manage its risks. A separate Safety and
Operational Risk (S&OR) function which is
independent of the line provides oversight on
safety & operating exposures and periodically
conducts assessments and reviews to provide
independent assurance on the conformance to
the Operating Management System.
Changes since last year:
All entities within the Reliance Group have
progressed risk management through its annual
risk review process which is in place upto facility
level. This process confirms that controls are
in place and it sets priorities for further risk
reduction or elimination. Accountabilities for
risk reduction actions are clear and actions
tracked. A cascaded governance structure is
in place to provide risk oversight. Additionally,
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 has made good progress in enhancing
conformance to the requirements of its
integrated Operating Management System
(OMS). The transition to the OMS was prioritised
with a proactive focus on incident prevention.
The focus was on those OMS sub-elements
which have a high impact on process safety,
reliability and control of day-to-day activities
performed by its personnel. Conformance to
OMS requirements are continuously monitored
through a three lines of defense model. These
initiatives contribute to safety and operating
excellence delivering HSE Excellence.
b)
Safety and environmental risks during
Transportation
Technical integrity failure, natural disasters,
extreme weather, human error and other
adverse events or conditions could lead to
loss of containment of hydrocarbons or other
hazardous materials, as well as fires, explosions
or other personal and process safety incidents
during transportation by road, sea or pipeline.
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
155
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: An augmented ship vetting
programme has been introduced to ensure
that all vessels contracted to carry Reliance
cargoes undergo an enhanced risk assessment
screening using state-of-the-art predictive
risk software. For incident response in shipping
formal documentation and cascading has been
completed.
Reliance is further improving the controls
framework for road transportation working
hand in hand with its contractors. Reliance has
enhanced its capabilities through defensive
driving training, route hazard mapping and real
time tracking. Contractors are able to use these
in an integrated way to deliver safe operations
while on contract with Reliance.
Changes since last year:
Road transport contractors have been
utilising the services for improving safety in
their operations. The emergency response
communication facility has been enhanced
through a dedicated emergency response
centre for road transportation in the country so
that contractors can immediately respond to
any emergency.
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.
c)
Integrated Annual Report 2017–18Management’s Discussion and Analysis
156
Mitigation: Reliance maintains a proactive
posture by continuously monitoring and
assessing emerging threats, vulnerabilities and
risks to manage its physical security. Global
Corporate Security (GCS) is a distinct function
of Reliance mandated to de-risk, safeguard and
secure the Company by harnessing expertise
from across the spectrum. The group security
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. It actively
monitors the threat landscape to
prevent/mitigate risks using a ‘de-risking’
framework, ensuring safe operations and
business continuity.
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:
Despite the prominence and increased
perception of environmental and natural
disasters, cyber and terrorism risks continue
to be increasing globally. Intelligence based on
detailed analysis of past events and emerging
trends indicate that dealing with these threats is
likely to become more complex in the
inter-connected world. Continuous application
of pre-emptive mitigation measures is being
ensured to reduce exposure levels. Reliance is
proactively engaging with as many stakeholders
as possible through external strategic
interventions to mitigate future security risks
to Reliance. This includes capitalising and
strengthening sustainable relationship with
the government agencies to enhance the
security cover at an enterprise level, especially
against terrorism.
III)
Compliance and Control Risks
a)
Regulatory compliance risks
The evolution of the global regulatory
environment and at home the Government of
India’s ambition for reforms and transparency
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 in 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:
With GST being implemented as a regime
change for the country, the efforts have been
focussed on a seamless migration. There have
been no significant changes in the nature of
risk exposures related to other regulatory
compliances during 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.
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.
Mitigation: The interest rate risk is managed
through financial instruments available to
convert floating rate liabilities into fixed rate
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157
liabilities or vice versa, and is aimed at reducing
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 arising from
mismatch of Foreign Currency Assets, Liabilities
and Earnings is tracked and managed within the
risk management framework.
The foreign exchange market is highly 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.
3) How Reliance Manages Risk
Reliance manages, monitors and reports on the principal
risks and uncertainties that can impact its ability to
achieve its strategic objectives. The Company’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:
• 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; both
long-term (such as climate related risks,
opportunities and its financial impacts) and
short-term (such as commodity price risks,
exchange fluctuation risk etc.). 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 depending on the criticality and
impact 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
requirements, along with business needs and
Integrated Annual Report 2017–18Management’s Discussion and Analysis
158
the applicable legal and regulatory requirements,
underpin the practical 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 provides
functional assurance to the businesses in their
area of expertise by:
1)
2)
3)
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
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.
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Digital Platforms
159
Kiran Thomas
Anish Shah
Rui Bastos
Leveraging Digital technology capabilities to enable rapid innovation,
organizational agility and market responsiveness
Reliance is moving to a digital strategy that leverages
the new digital and cloud capabilities to create new value
propositions for the businesses and markets in which
Reliance operates.
Reliance’s digital strategy aims to reformulate a company’s
value proposition in the markets in which it operates by
integrating a combination of products and digital services
that seek to anticipate and respond to current and future
customer needs. To consistently deliver new digital
solutions, Reliance is investing in new digital business
capabilities:
• A cloud enabled operational IT backbone to drive efficiency
and operational excellence,
• A digital services platform to support business agility and
rapid innovation through new digital products and services.
Reliance has built its operational IT backbone over many
years for all its businesses. Existing operational IT backbones
provide foundational capabilities that are needed to enable
digital services platforms but have historically been designed
for reliability and efficiency, rather than speed, agile
development and elastic scaling required for rapid digital
innovation.
Reliance is therefore evolving its existing operational IT
backbone with technology and business capabilities to
build and operate digital services platforms which deliver
on its digital strategies, while still ensuring the efficiency,
scalability, reliability, and predictability of Reliance’s core
operations.
Digital services platform enable rapid innovation and agile
change through technology and business capabilities that
facilitate rapid development and implementation of digital
solutions and innovations. The architecture of a digital
services platform also facilitates experimentation and
reusability of technologies and digital services to improve
operational performance, user experiences and new sources
of value. The Reliance digital services platforms strategy
includes the rollout of 4 key elements:
1)
2)
3)
4)
Software as a service (SaaS) based platforms - Cloud
based hosting environments for storing and accessing
loosely connected services which deliver business
solutions and services
Enterprise data lake - Integrated repository of massive
amounts of data, whether from internal and public
sources (e.g., from social media), purchased or derived
from sensors (e.g. IoT)
Analytics and Data Science engines - Computing
capabilities used for converting data into meaningful
insights through data visualization, machine learning and
artificial intelligence
Enterprise Integration capabilities - Scalable
connections to data and processes that reside in the
company’s operational backbones.
The deployment of cloud enabled operational IT backbones
and digital services platforms also require developing and
embedding fundamental management practices related to:
• Rapid innovation and agility in identifying emerging trends
and opportunities
• Cross-functional development of digital solutions and user-
centered product and service design that integrate business
partners (customers, suppliers, other stakeholders)
• Agile development and DevSecOps practices and the use
of MVP (minimum viable product) concepts and continuous
improvement capabilities and mindsets
• Leveraging business insights from big data repositories of
structured and unstructured data
• Reusing and redeploying plug-and-play technologies and
business skills and capabilities
Moving to digital services platform strategy is therefore
a strategic investment in building integrated, difficult-to-
replicate capabilities that deliver and sustain Reliance’s long
term strategy in a digital future.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 160
Awards and Recognitions
Business Leader Award for Corporate Excellence
Leadership
• Shri Mukesh D. Ambani won ET Business Leader award for
Quality
• A “Quality Circle- Lakshya” from HDPE Plant was awarded
corporate excellence in 2017
• Shri Mukesh D. Ambani ranked amongst the World’s 50
Greatest Leaders by Fortune Magazine in 2018
• Shri Mukesh D. Ambani is the only Indian business leader to
be ranked amongst the ‘World’s 75 Most Powerful People’ by
Forbes magazine
• Smt. Nita M. Ambani, India’s first woman member of the
International Olympic Committee, made it to two prestigious
commissions: Olympic Channel Commission and Olympic
Education Commission
• Smt. Nita M. Ambani, founder of Reliance Foundation
felicitated by Metropolitan Museum of Art for her
philanthropic work
Human Resources
• Recognised as one of the 25 companies in the LinkedIn 'Top
companies - where India wants to work' list-2018
• Won Golden Peacock Award 2017 for Corporate Ethics
• Three employees of RIL received ‘Shram Awards’ declared
by Government of India organised by Ministry of Labour and
Employment at Vigyan Bhavan, Delhi held on 26th February
2018
with highest category “Gold Award” at International
Convention on Quality Control Circles (ICQCC) 2017
• ‘Jazbaa’ Quality Circle was awarded with ‘Par Excellence
Award’ and ‘Topaz’ Quality Circle was awarded with
‘Distinguished Award’ at the 31st Annual Convention of
National Level competition on Quality Concepts (NCQC)
2017
Energy and Water Conservation/ Efficiency
• Received Excellent Energy Efficient Unit Award at CII’s 18th
National Award for Excellence in Energy Management in 2017
• A chlor-alkali plant received the best performer award under
PAT scheme by BEE in 2017
• First petrochemical complex in India to achieve CII “GreenCo
Gold” certification
Technology, Patents, R&D and Innovation
• Received highest category ‘Gold’ rating by International
Research Institute for Manufacturing at IGMC Award 2017
• Received the ‘Drivers of Change’ award at the Financial
Times ArcelorMittal Boldness in Business Awards
• ‘Best Innovation Award’ in R&D at RTM for development and
commercialisation of low cost anti-coking and sulphiding
additive
• Won the IBC Innovation Award 2017
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Golden Peacock Award CSR - 2017
Golden Peacock Award
Most innovative project - CII
• Product innovator of the year in petrochemical sector by
FICCI for ‘Indigenous Technology for Polypropylene Catalyst
& External Donor system for Raffia grade’
• 8th PLASTICON award for innovation in green technology
for ‘High Energy Efficient & Zero Residue Process For High
Performance Catalyst For Producing Homo & Impact PP’
Health, Safety and Environment
• Won the Golden Peacock Eco-innovation Award 2017 for
reducing its carbon footprint in Recron Green Gold products
• Received Gold Award for outstanding achievement in Safety
Management in Textile Sector at the 16th Annual Greentech
Safety Award 2017
• Received “Golden Peacock Environment Management Award
• ICC - Acharya PC Ray award for RIL First-to-World RELS
precursor based Polypropylene Catalyst Technology
Development
2017” in the “Petroleum sector”
• Received the “Most Innovative Project” at “CII -
Environmental Best Practices Awards 2017”
• ICC award for “Excellence in Process Design and
Engineering” for development and commercialisation of
indigenous technology for benzene recovery from FCC
gasoline
Capital Resources
• The Asset Corporate Award – Platinum Award, 2017 to
Reliance Industries Limited. Highest industry recognition
bestowed by The Asset to leading corporates in Asia
• The Asset Triple A Asian Awards, 2017 – Best Syndicated
Loan for Reliance Industries Limited’s US$ 1.75 billion
syndicated term loan facilities
• Asia Pacific Loan Markets Association (APLMA) –Syndicated
Corporate Deal of the Year Award for Reliance Industries
Limited’s US$ 1.75 billion syndicated term loan facilities
• Globally certified as a ‘Healthy Workplace’ by Global Centre
for Healthy Workplaces, Tucson, USA for the period of
2017-2019
• CASHe and Wellness initiatives won a Special Mention Award
by International SOS foundation in the innovation category
of Duty of Care Awards 2017
Risk Management
• Received the award for Best Risk Management Framework &
Systems– Conglomerate at India Risk Management Awards
2018
Corporate Social Responsibility
• Won Golden Peacock Award 2017 for CSR.
• Reliance Foundation was awarded ‘Rashtriya Khel Protsahan
Puruskar’ by Honourable President on the occasion of
National Sports Day for its contribution towards promotion
of sports
Integrated Annual Report 2017–18Management’s Discussion and Analysis 162
• RF Jr. NBA programme entered the Guinness Book of
World Records as over 3400 Jr. NBA students received
basketball lessons from the legendary Kevin Durant in the
world’s largest ever tech-enabled NBA clinic held for future
basketball talent
• Reliance Foundation received mBillionth Award South Asia
2017 under Agriculture & Environment Category for its
information services to farmers, fish folks and livestock
owners
• Reliance Foundation received India CSR community initiative
award 2017 for supporting the flood affected communities
through technology driven digital platforms during relief
operations in Madhya Pradesh
• Reliance Foundation received the Best Corporate Supporter
of Indian Sports at the third Mahindra Scorpio Times of India
Awards for its contribution towards promoting multiple
sports in the country
• Received to Gold IAA Olive Crown Awards 2018 under the
categories “Corporate Crusader of the Year” and “Events”
Sustainability
• Won the best ‘Sustainable Corporate of the year’ 2018 at
Sustainability 4.0 awards by Frost and Sullivan and TERI
• Reliance Jewels won ‘Innovative Jewellery of the Year’ award
at Gemsfield Retail Jewellery Award 2017
• Petro Marketing training won two awards at the CLO Awards
organised and evaluated by TISS and Leap Vault
Digital Services
• Reliance Jio ranked 17th in American business magazine Fast
Company’s ‘50 Most Innovative Companies list’ 2018
• Won ‘Best Mobile Operator Service for Consumers’ at Global
Mobile Awards 2018
• JioTV won the ‘Best Mobile Video Content’ award at Global
Mobile Awards 2018
• Won ‘Global Game-Changer Award’ in the seventh edition of
the Marico Innovation Foundation Awards 2018
• Won gold for best work in the ‘Brand Identity’ category at the
German Design Awards 2018
• Won ‘Innovative Mobile TV’ award for ‘Jio TV’ at the 8th edition
of Aegis Graham Bell Awards
• Won ‘Data Science’ award for its innovation ‘Smart Network
Coverage’ at the 8th edition of Aegis Graham Bell Awards
• Won ‘Best Integration of Digital Content with TV’ award in
Prime Time Awards 2017
• Won bronze medal in ‘Best Integrated TV campaign’ award in
• Won the ‘Golden Peacock Award for Sustainability’ in 2017 in
Prime Time Awards 2017
the ‘Petroleum Sector’
• Reliance Corporate Park recognised as ‘Iconic Indian Project
in Energy Efficiency and Sustainability’ in ACREX Hall of Fame
2018
• Received ‘Commendation for Significant Achievement in
Corporate Excellence’ from CII in sustainability
Retail
• Reliance Smart was awarded ‘Hypermarket of the Year’ at
Annapoorna Food Retail Awards 2017
• Won the ‘Best Mobile Game for Marketing’ award in the 8th
edition of India Digital Awards 2018
• Awarded ‘The Disruptor’ title in CNBC TV18 India Business
Leader Award 2018
Media
• CNBC TV18 and CNBC AWAAZ were awarded with the
English and Hindi Business News Channel of the Year
respectively, at the exchange4media News Broadcasting
Awards (ENBA) 2018
• Reliance Digital was awarded ‘Consumer Durables Retailer of
• India Business Hour won the ENBA Best Business
the Year’ at Star Retailer Awards
Program award
• Reliance Digital won ‘CDIT & Telecommunications Retailer of
• VOOT awarded the coveted ‘Best of 2017’ apps by the iOS
the Year’ in India Retail Awards 2017
App Store
• VOOT’s Progressive Web App product was awarded the IBC
Global Innovation Award 2017 in Amsterdam
• MoneyControl was awarded the Best Mobile App for Business
at the GSMA Asia Awards in June 2017
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Glossary
1)
Downstream
2)
Upstream
The downstream commonly refers to the refining of petroleum crude oil and the processing and
purifying 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.
3)
Nelson Complexity Index
The Nelson complexity index (NCI) is a measure to compare the secondary conversion capacity of
a petroleum refinery with the primary distillation capacity. The index provides an easy metric for
quantifying and ranking the complexity of various refineries and units.
4)
Gross Refining Margin
(GRM)
GRM is the difference between crude oil price and total value of petroleum products produced by
the refinery.
5)
Crude throughput
Crude throughput is the total amount of crude that is processed in the refinery
6)
Crack spreads
Crack spreads are differences between wholesale petroleum product prices and crude oil prices
7)
Refinery Off gas Cracker
A refinery off-gas cracker is a petrochemical unit that uses the gas generated as a byproduct of
refining operations
8)
Pet Coke Gasification
The gasifier converts petroleum coke, the lowest value refinery residue, into high value syngas
9)
Coal Bed Methane (CBM)
CBM is a form of natural gas extracted from coal beds.
10)
LTE Technology
Long Term Evolution (LTE) is often referred to as the next generation wireless network beyond 3G,
with the capacity to support a high demand for connectivity and supporting fast moving mobiles.
Integrated Annual Report 2017–18Management’s Discussion and Analysis 164
Report on Corporate Social Responsibility
Jagannatha
Kumar
Sudarshan
Suchi
Jalaj Dani
Hemant Desai
Dhanraj
Nathwani
Reliance has taken a comprehensive approach towards development,
striving to maximise its impact and reach the unreached. By working at
the grassroots level, the Company has already touched the lives of 20
million people, and endeavours to build a more empowered India.
Reliance: Changing Lives and Empowering India through Collaboration and Digital Technology
Reliance Industries Limited strongly believes in inclusive
economic growth. The Company’s CSR initiatives are
based on this principle, and resonate with India’s National
Development Goals as well as the Sustainable Development
Goals (SDGs) outlined in the United Nations 2030 Agenda for
Sustainable Development.
Most of the CSR activities of the Company are carried out
under the aegis of Reliance Foundation (RF), which in a
span of seven years has emerged as a leading corporate
foundation addressing nation’s multiple development
challenges. The Foundation was established in 2010 under
the leadership of Smt. Nita M. Ambani.
Schedule VII of Section 135 of the Companies Act, 2013 lists
out various areas in which corporate entities are expected
to deploy their CSR funds and implement programmes for
social development. Reliance has strategically chosen the
company’s CSR initiatives with a focus on improving the
quality of life. The initiatives focus on seven areas: Rural
Transformation, Health, Education, Sports for Development,
Disaster Response, Arts, Culture and Heritage and Urban
Renewal. During FY 2017-18, Reliance spent `771 crore on
CSR initiatives under these focus areas.
The key philosophy of all the social development initiatives of
RIL is based on three core commitments of Scale, Impact and
Sustainability.
Till March 2018, Reliance’s development initiatives have
touched the lives of 20 million people across India. The
Company’s initiatives registered an impressive reach across
India as shown in the accompanying map.
Expenditure on CSR Initiatives
The following table presents theme-wise CSR expenditure of Reliance for the year 2017-18.
CSR Expenditure (` in crore)
Rural transformation
Health
Education
Sports for development
Disaster response
Arts, culture & heritage
Urban renewal*
Total
Of the total expenditure, `745 crore is from RIL and the rest is from the Group Companies. Figures are rounded off as appropriate.
*Urban renewal - `34 lakh in FY 2017-18
FY 2017-18
195
148
373
50
4
1
-
771
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice 165
Geographical reach of Reliance’s development initiatives
Legend
Rural Transformation
Health
Education
Sports for Development
Disaster Response
Arts, Culture & Heritage
Urban Renewal
Plant locations with CSR activities
Reliance Foundation focuses on its social initiatives with a
three-pronged strategy:
direct engagement with the community,
(i)
(ii)
forging partnerships and collaborations, and
(iii) leveraging the power of information technology.
Reliance Foundation directly engages with the communities
through a team of trained professionals. It collaborates with
the communities right from understanding their needs,
planning and implementing the programmes, and measuring
the values and impact it has created. In the process,
Reliance engages the community members in planning and
implementation, empowers them through trainings and
works towards scalability and sustainability of the initiatives.
Reliance Foundation forms strategic partnerships with
organisations to bring in synergy to its development
initiatives. These partnerships include state and local
governments and non-government organisations working
at the grassroots level. Reliance collaborates with the
organisations for sharing technical know-how, human
resources and infrastructure. These partnerships support
in delivering Reliance’s commitment by intensively engaging
with the communities and penetrate into the critical issues
that are physically untouched through direct interventions.
Reliance leverages technologies to provide sustainable
solutions. These technological interventions connect
communities on multiple digital platforms for optimum
use of resources, informed decision making and capacity
building. This has been greatly aided by the emergence of Jio
Infocomm as a major player in digital services in recent years.
Through the use of technology, Reliance has made significant
progress in reaching out to the people with various products
and services such as information advisories, digital
classrooms, virtual sports clinics, record keeping of patients
among others.
In addition to Reliance Foundation’s interventions, the
Company also encourages its employees to voluntarily
contribute to social causes. Periodic inputs are obtained
from employees on their interest to contribute to a
particular cause. Additionally, depending upon the needs of
communities, the Company leverages specific skill sets of
employees and allocates resources for effective delivery.
The following sections present an overview of various CSR
initiatives taken up by the Company.
Integrated Annual Report 2017–18Report on Corporate Social Responsibility 166
Reliance Foundation Key Highlights
Increased agricultural produce
Quality healthcare for all
RF Young Champs in action
Rural Transformation
Health
• Livelihoods of 1.2 million+ farmers,
fisherfolk and livestock owners
enhanced (over 4.8 million since
inception)
• More than 73 billion litres of water
harvesting capacity has been created
since inception. As a result, 307
villages were made water secure
• Over 7 million saplings were planted
this year to promote biodiversity (over
20 million since inception)
• Eco-consistent soil conservation
resulted in bringing more than
7,000 Ha of land under sustainable
agricultural practices (over 64,000 Ha
since inception)
• Water harvesting and conservation
efforts resulted in bringing over 32,000
hectares of land under irrigation since
inception
• Over 0.44 million health consultations
provided to patients through Reliance
managed hospitals, mobile and static
medical units and various health
camps (4 million since inception)
• The eye care services supported 1,207
visually impaired individuals under the
Drishti Programme (17,000+ corneal
transplants since inception)
RF Voice services
Water conservation through earthen dam construction
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RF Young Champs in action
Sairandri Sahu conducts a Women’s Saving Group Meeting
Promoting Arts and Culture
Education
Sports for Development
• Providing quality education to
• The RF Jr. NBA programme has scaled
16,000 students through 14 Reliance
Foundation Schools
• 713 talented students were given
scholarships to pursue higher studies
(over 13,644 scholarships since
inception)
up to 10,000+ schools across 34
cities through its physical education
curriculum. So far, the programme has
inspired 9 million children and youth to
adopt healthy, active lifestyle
• The RF Young Champs programme is
supporting 48 talented young football
players through scholarships to hone
their skills with world-class facilities
and best-in-class trainings
•
In its second year, RF Youth Sports
programme introduced athletics
while continuing with football. The
programme reached out to 4.7 million
youth from 3,400+ educational
institutions across
34 cities
Disaster Response
Arts, Culture and Heritage
• Supported over 10,000 individuals
• Supported ‘8 Prahar’, an event
from 22 flood affected villages across
Assam’s 11 districts
• Helped over 0.15 million individuals
from 87 flood affected villages across
2 districts of Gujarat. Adopted four
worst-hit villages to provide required
assistance for rehabilitation, beyond
the immediate relief efforts
• The early warning advisories
disseminated during Ockhi cyclone in
Southern India saved lives of 27,000
fishermen and over 4,600 Ha of paddy
fields
dedicated to Indian classical music,
bringing together singers including
Padma Vibhushan Sangeet Martand
Pandit Jasraj to delight music lovers in
Mumbai
• Supported the annual concert ‘Abbaji’,
organised by Ustad Zakir Hussain
in the memory of renowned tabla
maestro, Ustad Allah Rakha Khan
Integrated Annual Report 2017–18Report on Corporate Social Responsibility 168
1) Rural Transformation
Reliance has been addressing the challenges of
rural communities through its rural transformation
programme. Key initiatives in this programme include
building rural institutions, making villages water secure,
mentoring producer companies and enabling alternative
livelihood options on and off the farm. The programme
also uses technology based solutions for securing
livelihoods of farmers, fisher folk and livestock owners
across the country.
In addition to direct engagement, Reliance supported
several organisations working in the field of rural
development with an aim to benefit the rural community.
This year, the initiatives supported are aimed at building
drought-resilient villages by ensuring water sufficiency,
income enhancement through women-led cooperative
societies and fishermen producer companies, and
capacity building of farmers for better price realisation.
Together, these initiatives help achieve the SDGs 1 (No
Poverty), 2 (No Hunger), 6 (Clean Water and Sanitation)
and 10 (Reduced Inequalities).
1.1) Institution Building
The programme empowers rural communities to
organise themselves into Village Associations,
Producer Companies and Women Thrift Groups.
These community level institutions have facilitated
the development of village level leadership for
addressing local social development issues. Many of
these institutions have taken up advocacy roles at
different levels.
mobilising physical and financial resources in times
of crisis. Some of these leaders are also elected by
people as representatives of Gram Panchayats,
given their active participation in community
development initiatives. Today, over 86,000 rural
households in 1,100 villages from 32 districts
across 12 states in India are associated with the
programme.
1.2) Water Security
The programme aims to provide water security to
villages for irrigation and domestic use. Reliance
works for conserving every drop of rain within the
village. More than 73 billion litres of water harvesting
capacity has been created since inception by
constructing or renovating water harvesting
structures, including earthen/masonry dams and
check dams, farm ponds, open wells, etc). Owing to
this effort, over 32,000 hectares received assured
irrigation for two cropping seasons, despite the rain
deficit in many parts of India this year. These efforts
resulted in water security of 307 villages. Moreover,
several villages have reported an increase in ground
water level by over 2 metres, even at the peak of
summer seasons.
For efficient water management, user groups were
formed across 260 villages that manage and regulate
sustainable water use. Assessments show that
the intervention has positively impacted farmer
livelihood in terms of land use pattern, cropping
intensity and income levels.
For long-term sustainability of these institutions,
the members have come together to contribute
towards creating a community owned fund, infuse
equity into producer companies, savings and thrift
activities. They have also been instrumental in
Reliance supported Paani Foundation’s Water
Cup initiative to ensure water security in rural
Maharashtra. Through this initiative, over 96 billion
litres of water storage capacity has been created
across 1,300+ villages.
Village Transformation by a Woman Leader
Smt. Lachchho Bai Dehriya
(age 62) is a housewife hailing
from Chikhla village of Seoni
district, Madhya Pradesh.
Her life was distressed
when her husband was
struck by paralysis. With a
limited farm income from
just 2 hectares of land,
she managed to raise her
children and married off two
daughters. During all these
years, she felt the need for
environmental conservation
and had a vision for holistic
development of her village
and the need for women to
contribute to this.
After she joined the
rural transformation
programme in 2012, she
received support in land
development, besides
benefitting from trainings
and exposure visits to
widely acknowledged model
villages of Maharashtra.
All these inspired her to
contribute to the village and
women around her.
Equipped with her enhanced
leadership skills, Lachchho
Bai led a thrift group of 30
women to win freedom from
exploitative money-lenders.
Besides agriculture, she
focussed on pressing social
issues such as alcoholism.
Along with 55 women, she
fought for banning liquor and
tobacco shops, after which
the Gram Sabha submitted
a resolution to the local
police. The Police Station
of Kurai block awarded her
for this initiative. Under her
leadership, the village has
made substantial progress
including formation of
seed bank, construction of
toilets, availability of piped
water supply, and enhanced
incomes.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice
Transforming Lives: Water Conservation in
Sendhwa
Value Creation through Enhanced Water
Security
169
The focus areas of Rural
Transformation programme
include enhancement of
water security and creating
livelihood opportunities
for small and marginal
farmers. During 2018,
Reliance initiated an
impact assessment of
its water security and
livelihood interventions
using the Social Returns
on Investment (SRoI)
methodology.
For this assessment, five
programme villages of Agar
(Madhya Pradesh) were
selected. In these villages,
the water and livelihood
interventions reach out to
around 5,100 people. By
the end of March 2018, the
programme in Agar has
completed almost five years
of operations.
The study looks at indicators
such as improvement in
water efficiency, economic
stability, education and
health, livelihoods, reduction
in migration, increase in
confidence, aspirations
and self-worth. Findings
show that the investments
made by Reliance have had a
positive impact on most of
these aspects.
This aggregation also enhances the bargaining
power of farmers. So far, Reliance has mentored 19
FPCs, spanning 10 states. As on 31st March 2018, the
RF-mentored FPCs had 21,500 farmers associated
with them. During FY 2017-18, the annual turnover of
FPCs was `67.5 crore. Each farmer who transacted
through FPCs, on an average had an additional
income of `5,000 to `6,000.
In Bijapuri village of
Sendhwa block (Barwani,
Madhya Pradesh), people
tend to migrate annually
to neighbouring states
including Maharashtra and
Gujarat. With predominant
rain-fed agriculture and lack
of irrigation, the farmers
were unable to cultivate
more than a single crop that
resulted in dependency
on non-farm livelihood
options during Rabi and Zaid
seasons.
A water-budgeting exercise
carried out revealed that
the village could be made
water secure by harvesting
rainwater at strategic
spots. After technical
assessment, Reliance
constructed a check dam
that helped assure irrigation
of 80 hectares. With this
support, the farmers can
now cultivate in at least
two cropping seasons
annually. This has resulted
in year-round availability of
livelihood options within
the villages.
1.3) Farmer Producer Companies
Perennially, India’s farmers have faced the challenge
of establishing market linkages. To help the farmers
overcome this challenge, Reliance empowers them
to set up Farmer Producer Companies (FPCs).
These farmer-owned and farmer-driven companies
sensitise rural producers on the need to come
together as collectives, aggregate farm produce
to bring in economies of scale for fetching better
prices, have sustainable access to markets, etc.
Highlights of Reliance mentored Farmer
Producer Companies for the year
• RF received Krishi
Pragati Award 2017 from
NCDEX for outstanding
contribution in improving
income of small and
marginal farmers through
FPCs.
• Bhimpahad Krushak
Producer Company in
Balangir, Odisha was
licensed as a supplier of
seeds and fertilizers by
the Govt. of Odisha. This
would benefit the farmer
members in getting quality
seeds at nominal subsidized
government prices. The
FPC has been ranked as
Grade “A” organisation by
NABARD.
• Jamwa Ramgarh FPC
was recognized as the
Most Promising Producer
Company.
• In collaboration with
Gujarat State Co-Operative
Cotton Federation Limited,
Jasdan Producer Company
transacted 54,000+
quintals of groundnut that
benefitted 5,700 farmers.
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170
1.4) Nutrition Security
To improve nutritional outcomes among rural
population, Reliance has been promoting its unique
kitchen garden model across its programme
locations as well as providing technical support
to government. This year, Reliance Foundation
extended the scope of its partnership under
Rajmata Jijau Nutrition Mission of Government of
Maharashtra. Under this, RF would provide technical
support to anganwadis across 16 districts in setting
up Reliance Nutrition Gardens. This initiative is
aimed at improving nutritional outcomes of 0.2
million mothers and children in these districts thus
reducing the burden of malnutrition in the state.
1.5) Alternative Rural Livelihoods and
Entrepreneurship
Reliance promotes alternative livelihood options
to provide protection against uncertainties and
catastrophes that affect farm-based livelihoods.
The Company encourages small farmers to initiate
goat-rearing, poultry, nursery raising and
vermi-composting, among others. Till date, ~9,500
rural families have benefitted from alternative
livelihoods (over 7,000 families during FY 2017-18).
1.6) Ecological Security
Reliance promotes ecological security in three ways:
increasing the supply of cultivable land; enhancing
the green cover through large-scale plantation
activity; and improving soil health.
The Company adopts eco-consistent soil
conservation methods that resulted in bringing
an additional 7,000 hectares (64,000 hectares
since inception) under sustainable agricultural
practices. This has led to an improvement in soil
texture, structure, microbial activity and aeration,
and almost 80% of this land has been used for food
production.
To promote biodiversity, over 7 million saplings
were planted during FY 2017-18 (over 20 million
saplings planted since inception). Reliance observed
the World Environment Day and motivated rural
communities and employees to plant saplings. The
event saw an enthusiastic participation of 20,000+
people from over 150 villages across 12 states.
Reliance endorses the protection of the soil eco-
system. It conducted over 11,000 soil health tests
and accordingly disseminated relevant advisories.
Virtual platforms for informed decision-
making
In addition, the users can
also seek information
with the help of key words
through chat. So far, 15,000
different advisories have
been uploaded in 9 different
languages. The content
disseminated through the
app is benefitting a large
population which seeks
information to make the
best decisions about their
livelihoods.
Reliance Foundation has
been using multiple digital
solutions tailored to the
needs of its beneficiaries.
This year, RF leveraged
Jio Infocomm’s “JioChat”
application and added
essential features in it
to provide solutions to a
range of rural users seeking
customised information and
advice on improving their
lives and livelihood. The app
allows users to send and
receive information in the
form of text, images, voice
and video.
1.7) Information Services
Reliance, through its information services
programme, empowers communities by providing
reliable information, tailored to the needs of
farmers, fisherfolk, livestock owners, etc. in more
than 13,000 villages across 12 states. This is
disseminated both digitally and through community
level interventions that include information on
crop management, livestock care, schemes and
subsidies, healthcare, civic services etc. The mobile-
based advisories have reached an additional 1.2
million individuals this year. Overall, these advisories
have reached out to 4.8 million individuals since
inception; thus emerging as a powerful tool of
knowledge dissemination.
As part of the programme, Reliance has created
an ecosystem that comprises of more than 1,000
knowledge and infrastructure partners, thematic
experts, including research institutions, government
departments, NGOs, etc.
1.8) Improving Access to Social Infrastructure
Reliance improved access to social infrastructure
through development of concrete roads connecting
32 villages in Uttar Pradesh. The development of
roads is a turning point for many of these villages as
it has improved access to local markets, schools and
healthcare facilities.
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Contribution to Village Social Transformation
Mission, Maharashtra
In 2017, Reliance joined
hands with Govt of
Maharashtra in its holistic
mission of transforming
1,000 villages. As part of this,
Reliance is demonstrating
a comprehensive model
of rural transformation.
The model empowers
communities to establish
transparent and accountable
governance systems,
achieve food, water,
nutrition and energy security
contribute to sustainable
livelihoods. The model also
emphasises on education,
and awareness on rights
and entitlements. It works
towards strengthening
physical and digital
infrastructure, and making
villages resilient to disasters.
Early results from the direct
engagement by Reliance in
51 villages indicate:
• 252 community leaders
have emerged as change
agents driving the
transformation in 33
villages
• Increased water harvesting
capacity has been assured
irrigation for 2,600 hectares
• 3,500 families earning an
income of more than `1 lakh
per annum.
2) Health
The health programme of Reliance addresses primary
healthcare issues around affordability and accessibility
of quality healthcare. It strives to improve awareness
and healthy living practices, and provides a range of
healthcare services, spanning the entire life cycle. The
Company also provides specialised services through
tertiary healthcare facilities such as multi-specialty
hospitals, at subsidised prices to the communities. The
objectives of this programme are aligned to the SDG 3
(Good Health and Well-being).
Collectively, the health programmes have reached out to
2.5 million people and provided over 4.5 million patient
consultations since inception. Through partnerships,
Reliance supported several organisations working in the
field of healthcare in providing a range of services, both
at primary and tertiary level. These services include
preventive care, maternal and child health, specialised
care for patients with cardiac and kidney problems,
palliative care for terminally ill cancer patients, etc.
2.1) Sir H N Reliance Foundation Hospital and
Research Centre
Since its inauguration in 2014, Sir H N Reliance
Foundation Hospital and Research Centre has
emerged as a centre of quality care in Mumbai. By
keeping abreast of medical innovations and adopting
the best practices in clinical care, the hospital is
poised to offer world class medical care. It has won
India’s foremost quality accreditation from National
Accreditation Board for Hospitals and Healthcare
171
Providers (NABH). A large number of patients with
complex medical issues have been treated here.
Its state-of-the-art operation theatre complex,
including robotics, cutting-edge diagnostics and
imaging facilities, enable the hospital to offer
excellent care.
During the current year alone, the hospital has
successfully performed 6,500 procedures with
excellent outcomes within a strong ethical
framework. These include some of the most
complex surgeries across different specialties
such as cancer, paediatric cardiac surgeries, spine
surgeries, joint replacement surgeries and vascular
interventions. The hospital conducted the first
Robotic kidney transplant in Maharashtra. The
hospital has successfully undertaken advanced Child
Haplo-identical Transplant by TCR Alphabeta and
CD45RA Depletion Method, the first such transplant
in India.
The Hospital organises health awareness
programmes to empower people to take informed
decisions on health issues. Over 9,000 people have
been covered so far, through ~100 programmes. The
Hospital also organized corporate health awareness
talks and school screening camps covering over
5,000 people. Through subsidised and free services,
the hospital benefitted ~ 10,000 out-patients this
year. True to the hospital’s motto, ‘Respect for Life’,
it provided over 200 charity patients with varied
medical services including paediatric cardiac
surgeries, cochlear implants and cancer therapies.
Sir H N Reliance Foundation Hospital and Research Centre
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The Hospital’s Emergency Care Department caters
to a large number of patients every year, and saved
many from death and permanent disability. Its
emergency teams meticulously follow international
best practices to offer lifesaving services in the
‘golden hour’ to treat stroke, heart attack, other
ailments and accidents. Over 9,000 patients
benefitted from the services this year. The Hospital
has initiated “Digital Push” mobile application using
which individuals can digitise and manage their
medical records.
The Hospital’s ethos of ‘patient first’ is exemplified
in the numerous steps it has taken to improve
patient care and give patient’s family members a
reassuring experience. The Hospital has leveraged
technology not only to improve medical care
but also to ensure service excellence. Its online
reports reduce visits to the Hospital and the online
registration and mobile applications help find
suitable doctors and expedite online appointments.
Efforts have been taken to reduce waiting time and
discharge time of out-patients. All these make the
Hospital truly a place where people, processes,
technology and infrastructure converge to provide
the best experience and care.
2.2) Dhirubhai Ambani Hospital
The Dhirubhai Ambani Hospital at Lodhivali near
Patalganga (Maharashtra), has provided free and
subsidised healthcare to 1,923 patients in this
financial year, taking the number of total subsidised
patients to 18,600 since inception. A majority of
these patients include the underprivileged, senior
citizens, and trauma victims from the economically
weaker sections of the society.
The Hospital’s Anti-Retroviral Therapy centre
is the largest in Raigad district. It has registered
over 4,000 persons with HIV/AIDS (PLHIV) since
inception, of which 210 were registered during FY
2017-18. The patients receive free consultation,
counselling, investigation and treatment. In FY 2017-
18, specialised health consultations were provided
to over 17,500 PLHIV taking the total number of
consultations to 0.14 million.
Through Reliance managed hospitals and
community level interventions, care and treatment
services were provided to over 1,200 HIV infected
and affected people, including children. The
Company also provided nutrition and education
support to 112 children affected with HIV. Moreover,
190 tuberculosis screenings were completed during
the year under review. Specialised events were
conducted to sensitise migrant workers, truck
drivers and sex workers on HIV infection. Awareness
was further created to reduce the stigma and
discrimination associated with it by distributing IEC
materials to them.
A Regional Level Marriage Bureau function was
organised at HIV DOTS Centre in collaboration
with Gujarat State Network of People Living with
HIV/AIDS (GSNP+). The programme saw large
participation of over 1,300 PLHIV from 4 states,
where 25 couples tied the knot.
2.3) Alliance for Saving Mothers and
Newborns (ASMAN)
Through Project ASMAN, Reliance, along with four
other organisations, is working in Rajasthan and
Madhya Pradesh to strengthen the health systems by
enhancing quality of services in public health facilities
for improved maternal and newborn outcomes.
The intervention provides technology-based
solutions to healthcare providers, backed by on-site
mentoring and supportive supervision visits during
critical phases of intra-partum and postpartum
care. Covering 81 multi-level health facilities, the
programme has trained 80 Medical Officers and 338
staff nurses on obstetric and newborn care. During
the project cycle, the programme will benefit at least
0.5 million mothers and newborns.
2.4) Eye Care Services
For more than a decade, through RF Drishti
programme, Reliance has been supporting visually
impaired underprivileged people to undergo
corneal transplants by partnering with the National
Association for the Blind, Arvind Eye Hospital and
Sankara Eye Foundation. This year, 1,207 visually
impaired individuals were supported under the
programme (17,031 corneal transplants since
inception).
To increase the awareness about importance of eye
donation, the programme organises a week-long
Drishti Art and Essay Competition every year. This
year, about 10,000 children participated in it.
At the community level, vision screening camps and
mobile eye clinics are regularly conducted across
the plant locations including Jamnagar, Nagothane,
Vadodara and Patalganga. During FY 2017-18, over
16,500 individuals were screened for vision related
issues, of which 1,185 cataract surgeries were done.
Over 1,050 individuals with refractive error were
further linked to specialised facilities for optical
correction and using spectacles.
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2.5) Menstrual Hygiene
Reliance engaged in the promotion of menstrual
hygiene across the rural areas of Nagothane
(Maharashtra) and Dahej (Gujarat) through several
community level interventions. These sessions are
aimed at addressing myths and misconceptions,
increasing the awareness levels on menstrual
hygiene and use of sanitary napkins. These
initiatives benefited over 1,400 adolescent girls and
women during FY 2017-18.
to her awareness efforts,
300 women and girls have
started using hygienic and
quality sanitary napkins.
Chandra Kanwar: Pad Woman from Sawai
Madhopur
Chandra Kanwar, a leader
of women’s thrift group in
Sawai Madhopur, is now
leading the menstrual
hygiene initiative, and
emerging as a change agent
in her community. She
hails from a conservative
family where women do not
have the freedom to make
choices, yet she is breaking
the socio-cultural taboo on
this stigmatised issue. Due
Not stopping at this, she
has founded an emerging
enterprise trading in
quality sanitary napkins,
making them available at an
extremely affordable price to
women in eight surrounding
villages.
2.6) Strengthening of Health System
Reliance is working towards improving the quality of
healthcare in Warangal (Telangana) by strengthening
the public healthcare ecosystem through technical
support to the Government. The objective is to
achieve the process quality standards according to
benchmarks of the National Accreditation Board for
Hospitals and Healthcare Providers and National
Quality Assurance Standards.
Students demonstrating skills
173
The project works towards improving the quality of
care through the adoption of quality management
health systems, process standardisation,
capacity building and technology integration. The
programme positively impacted 8 primary and
secondary healthcare facilities and a tertiary care
teaching hospital (MGM Hospital).
The project has shown improvement in quality
parameters such as safe disposal of biomedical
waste, improvement in management of deliveries
and informed decision-making of district health
administration. It also assisted in improvement in
counselling and implementation of digital record
keeping, among others.
2.7) Health Outreach Programme
Reliance’s health outreach programme provides
primary health services including screenings and
consultations. It employs 10 Mobile Medical Units
(MMUs) and 3 Static Medical Units (SMUs) across
Madhya Pradesh, Maharashtra and Uttarakhand
to offer medical help to the underprivileged
communities. In Mumbai, the high-risk cases are
further referred to tertiary level facilities. The
Company reaches out to the under-privileged
segments with information, education and
communication messages through camps and
technology-enabled information services to
emphasise preventive care and correct health
behaviours.
The medical units are equipped with state-of-the-
art technology to store patient information, which
helps healthcare providers in decision-making,
based on the case history. Through MMUs, SMUs and
camps, over 0.2 million consultations were provided
during the year under review. Further, 35,000
individuals were provided health related advisories
through digital platform. The health outreach
programme also empowers community volunteers
to help prevent seasonal outbreaks.
3) Education
Initiatives of Reliance in the education space are aimed
at promoting primary and secondary education and
enabling higher education through merit-cum-means
scholarships across the country. Reliance has been
leveraging appropriate technologies and learning
resources for improving the quality of teaching and, in
turn, student performance.
To diversify its initiatives in education space, Reliance
supported various organisations in providing
quality education to children from underprivileged
communities. The initiatives of these organizations
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focus on improving enrolment rate, improving skill
sets of teachers, improving English language skills of
children, education on child sexual abuse and positive
communication, mainstreaming of children with special
needs and improving educational infrastructure.
Through these partnerships, Reliance is improving
the learning outcomes of over a lakh children across
the country. The Company’s work in education sector
corresponds to SDG 4 (Quality Education).
3.1) Scholarships for Higher Education
In order to nurture talented young leaders, the
Dhirubhai Ambani Scholarship (DAS) programme
has so far provided financial support to 11,781
meritorious students to pursue graduation in any
stream and institution of their choice. Nearly half
of the DAS scholars are girls, while one-fifth are
specially-abled students. During FY 2017-18, DAS
the programme supported 423 students across the
country. Under Protsahan Scheme in East Godavari
(Andhra Pradesh), scholarships are provided to
meritorious students from the villages around plant
location. This year, 290 students were provided
scholarships under the scheme for pursuing higher
studies.
Together, Reliance has supported 13,644
students through various educational scholarship
programmes.
3.2) Reliance Foundation Schools
Thirteen Reliance Foundation Schools located
in Jamnagar, Surat, Vadodara, Dahej, Lodhivali,
Nagothane, Nagpur and Navi Mumbai, provide
education to over 15,000 children annually. The
schools offer education from kindergarten to
class 12 and are affiliated to the Central Board of
Secondary Education and State Education Boards
of Gujarat and Maharashtra. In 2017, Reliance
Foundation School, Koparkhairane was ranked
among the Top-10 schools in Navi Mumbai by
Hindustan Times.
The RF Schools have constantly maintained
excellent standards of academic performance.
In 2017, 22% students secured the maximum
achievable score of CGPA 10 in the CBSE Class
10 Board examination, 30% students of Science
stream scored above 90% in CBSE Class 12 Board
examination, and 27% students of Commerce
course scored above 80%. Schools affiliated to
the Maharashtra State Board reported 100% pass
percentage, both in Class 10 and Class 12 Science
stream, whereas the schools affiliated with Gujarat
State Board reported 93% pass rate in Class 10
Board examination, and 97% and 88% pass rate,
respectively in Class 12 Board exam for Science and
Commerce streams.
Besides academics, the students of RF Schools
continue to excel in co-scholastic, sporting and
co-curricular pursuits, while winning awards and
recognition at the district, state and national levels.
RF School, Koparkhairane won the ‘Best School’
award for the third consecutive year at the Inter-
School Elocution Competition. Other achievements
included gold medals in International Skating
Competition, Senior National Aquatic Championship
and CBSE National Level Athletics Meet 2017; bronze
medal in athletics at the inaugural Khelo India School
Games, football team representing the School at
the national level; and Swami Vivekananda Award
and Scholarship for state and national level sports
achievement. Three RF Schools were selected for
presenting their Science Projects at the National
Level CBSE Science Exhibition.
Dhirubhai Ambani International School (DAIS)
prepares students for the ICSE, the IGCSE and the
IB Diploma examinations. The school is a member of
the Cambridge International Primary Programme.
DAIS provides world-class education to 1,000+
children annually; and has about 150 teachers
with rich experience in national and international
curricula. Students have consistently achieved
outstanding results across all three curricula.
In 2017, two students of IGCSE Class 10 topped the
world in Mathematics and five students topped in
India in various subjects. The school’s ICSE average
score was 96% and the highest score was 98.4%. In
the IB Diploma Examinations, eight students earned
the perfect score of 45, average score of the class
being 39.2. The IB Diploma graduates of 2017 earned
admissions and scholarships to 22 of the top-30
universities worldwide. During the academic year,
students won over 500 awards in various sporting,
scholastic and co-curricular events at the state,
national and international levels.
Over the years, the School has achieved highest
standards of excellence on all performance
parameters. DAIS is among the very few
schools in India to be jointly accredited by the
Council of International Schools and the New
England Association of Schools & Colleges.
In 2017, Education World ranked DAIS as the
No. 1 International School in India for the fifth
consecutive year. Hindustan Times ranked DAIS
as No. 1 School in Mumbai for the fifth time. Times
of India ranked DAIS as the No. 1 ‘National and
International Curriculum’ School in Mumbai for the
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third consecutive year. DAIS is also one of India’s few
schools to be certified by the Indian Green Building
Council with the highest-level ‘platinum’ rating.
3.3) Reliance University
Reliance is working towards establishing a globally
benchmarked, multi-disciplinary university in
Maharashtra. It will provide an enabling environment
and cutting-edge research facilities to students.
3.4) Infrastructure Support to Schools
Reliance constructed two schools for the
Government of Uttarakhand as part of its relief and
rehabilitation support in the aftermath of devastating
floods in 2013. The two schools, which are now
operational, stand testimony to the Company’s
commitment towards rebuilding Uttarakhand. These
schools cater to nearly 1,000 students, coming from
around 30 villages in the vicinity.
The Government schools across several locations
were supported in enhancing their infrastructure
including furniture, computers, RO plants,
school uniform kits, etc. The spouses of Reliance
employees held English language classes for
students of Moti Khavdi Kanyashala and helped
deprived and school dropout girls to compete
through the National Institute of Open Schooling.
Rashtriya Khel Protsahan Puraskar
Reliance Foundation was
conferred with Rashtriya
Khel Protsahan Puraskar in
2017. On behalf of Reliance
Foundation, Smt. Nita
M. Ambani received the
prestigious award from
Honourable President of
India Shri Ram Nath Kovind,
for her influential role in
transforming India into a
sporting nation.
3.5) Digital Classroom
Reliance has worked with local governments
to establish model digital classrooms in 129
government schools across Andhra Pradesh,
Gujarat, Madhya Pradesh, Maharashtra and
Telangana benefitting about 30,000 students.
A central relay station connects teachers to
all schools for teaching live virtual classes and
facilitates interaction between teachers and
students. Offline classes on specific subjects are
also conducted. The virtual classroom has bolstered
the confidence of students and has resulted in
higher pass percentages. Additionally, the platform
is being used for conducting classes on development
of life-skills, career guidance, etc.
4) Education and Sports for All (ESA)
Using sports as a vehicle, Reliance promotes health,
fitness and active lifestyle to bring about a positive
change among youth and children in both urban and rural
landscapes. Popular sports such as football, basketball
and athletics are used to cultivate strategic thinking,
competitive spirit and leadership abilities among
children and youth. Reliance partners with various
national and state sports bodies in improving the quality
of sporting ecosystem through better facilities, training,
infrastructure and equipment.
4.1) Quality Education to Underprivileged
Under ESA, Reliance supports education of
underprivileged children by partnering with NGOs
and works at grassroots level. As an extension under
this initiative, an innovation in the form of Digital
Learning Van was launched in 2017. The van has
reached out to more than 4,000 children from 10
government schools in Mumbai and Thane districts.
This initiative has positively impacted 0.2 million
children.
4.2) Reliance Foundation Jr. NBA programme
RF Jr. NBA programme, a comprehensive school-
based basketball initiative, completed its fifth
consecutive year. The programme has successfully
integrated basketball into the physical education
curriculum in 10,000+ participating schools
nationwide. The programme has reached out to
9 million students across 34 cities in India since
inception and 5.6 million students in FY 2017-18.
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RF Jr. NBA enters Guinness Book of
World Records
In 2017, the RF Jr. NBA
programme entered the
Guinness Book of World
Records. The programme
witnessed over 3400 Jr. NBA
students at Delhi, Bengaluru,
Chennai, Hyderabad and
Kolkata receiving basketball
lessons from the legendary
Kevin Durant in the world’s
largest ever tech-enabled
NBA clinic held for the future
basketball talent on July 28.
4.3) Reliance Foundation Youth Sports (RFYS)
RFYS provides a nation-wide unique platform
for promoting grassroots sports. In 2007, the
programme continued with football and introduced
athletics to further identify and encourage sporting
talent across the country.
During FY 2017-18, football tournaments of RFYS
expanded to 34 cities, including the cities of
Northeast India, entire Kerala and key cities like
Bangalore, Hyderabad and Chandigarh. Overall,
4,900 teams (including 450 girls’ teams) from 3,400
institutes participated in the tournaments. All India
Football Federation has backed the RFYS grassroots
development programme, counting these players
among ‘the finest young players in the country’.
The programme also sponsored 400 best physical
education teachers for ‘D-License Coaching
Certification’.
Under athletics, different categories have been
promoted, including sprints, relays, long- distance
run, high jump and long jump. Competitions were
held across 8 centres, including sports hubs such as
Punjab, Haryana and Kerala. An inaugural National
Athletic Championship was held in Mumbai, which
saw participation from 2,900 institutes with over
9,000 athletes competing in over 3,000 events.
The programme strategically partnered with
20 institutes across the country for effective
implementation. On the ground, the tournaments
were conducted by officials from Athletics
Federation of India and All India Football Federation.
Reliance further donated equipment to the
participating institutes to promote sports. For
motivating young talent and expanding the reach
of RFYS, all final matches at city level, zonal level
and national level were live-streamed on the RFYS
website.
4.4) Reliance Foundation Young Champs (RFYC)
RFYC is a unique, scholarship-based, full-time
residential football and education programme. It
aims to provide India’s aspiring football talents the
opportunity to hone their skills with world-class
facilities and best-in-class training.
During FY 2017-18, eight young football talents
were awarded scholarships to develop their football
skills, taking the total to 48 scholarships. Under
the programme, 30 Young Champs were sent for
international exposure trip to Spain where they got
an opportunity to play friendly matches, with teams
including Real Madrid, Atletico de Madrid, Valencia,
Villarreal, Rayo Vallecano and Leganes.
The Young Champs Sports Academy has been
accredited as one of the best in India by the All
India Football Federation. Reliance’s objective is to
maintain this position; and also strive towards the
cherished milestone of achieving 5/5 grade.
5) Disaster Response
Reliance aspires to respond swiftly and effectively to
disasters that endanger human lives and livelihoods,
by directly engaging with affected communities. It
leverages all its strengths – including human resources
and information technology – to provide relief and
rehabilitation support. During FY 2017-18, the Company
promptly helped communities affected by floods and
cyclone in Assam, Gujarat and Southern India.
5.1) Flood Response in Assam
The Assam floods in August 2017 affected several
people across the state, leaving them stranded and
dispossessed. Responding to the need, Reliance
identified the 22 villages that did not receive
adequate relief support, and supplied ration-kits to
more than 10,000 people, enough to sustain them
for a duration of 15 days.
5.2) Flood Response in Gujarat
With heavy rains battering Gujarat, floods wreaked
havoc in the state, bringing life to a standstill and
causing widespread damage. Taking note of the
grim situation, Reliance worked relentlessly to
support the afflicted communities. For immediate
sustenance of the victims, teams of Reliance with
support from community volunteers distributed
relief kits to 0.15 million people across 87 villages.
Besides, health camps were conducted to secure
6,000+ people against immediate and medium-term
health risks emanating from floods.
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Reliance Foundation’s toll free helpline received
several calls asking for help to locate missing boats
and fishermen. The information was immediately
shared with the Coastguard and Indian Navy to
facilitate the rescue work and the information on
rescued fishermen was shared with their anxious
families. Over 300 fishermen and 35 boats were
rescued from the deep sea. An assessment shows
that almost 91% of cyclone-affected fishermen
reported having benefitted from the advisories.
6)
Arts, Culture and Heritage and Urban
Renewal
Reliance works to preserve the rich heritage, art
and culture of India for its future generations and
makes conscious efforts to improve the livelihood
opportunities for traditional artisans and craftsmen.
This is done primarily by undertaking various
promotional projects and documenting India's heritage
for the benefit of future generations.
6.1) Abbaji Annual Concert
Reliance continued to support the annual concert
“Abbaji” organised by Ustad Zakir Hussain. The
concert featured several renowned musicians who
came together to pay tribute to the legendary Guru,
Ustad Allah Rakha Khan.
6.2) 8 Prahar: Concert on Indian Classical Music
Reliance supported ‘8 Prahar’, an event dedicated
to Indian classical music. This unique event, jointly
initiated by Art and Artistes and Pancham Nishad,
brought together leading exponents of classical
music, including Padma Vibhushan Sangeet Martand
Pandit Jasraj to delight Mumbai’s music lovers. The
event featured performances from 6.30 a.m. to 3
a.m. of the next day with artistes performing the
Ragas of the respective 'Prahar’ (time of the day).
6.3) Beautification of Public Places
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 improve public spaces
to revitalise the ageing infrastructure and provide
newer facilities. Reliance supported beautification
of public places during FY 2017-18 to improve the
available infrastructure for ease of people. As part
of this project, protective grills on Magdalla Bridge,
Hazira were installed to prevent mishaps. Three
parks in the crowded urban spaces of Mumbai were
revitalised with fencing and periodic maintenance
services.
Disaster Response Gujarat - RF spreading happiness
To maximise the benefits to affected communities,
Reliance used technology to reach out to them with
useful information. Advisories were sent across to
over 0.3 million flood victims to guide on the correct
use of chlorine tablets in water, health precautions,
livestock care, and government schemes. In
addition, over 0.1 million people contacted toll-free
helpline numbers for specific relief requirements.
5.3) Support during Ockhi Cyclone using
Technology
Reliance played a key role in saving many lives when
Cyclone Ockhi hit the southern parts of India. The
Company disseminated advisories related to warnings
on cyclone to coastal areas in Tamil Nadu and Kerala
through its different communication channels.
Due to high windspeed and waves, along with heavy
rainfall, fishermen in these areas were urged not to
venture out into the sea. The timely information
provided by Reliance saved lives of over 27,000
fishermen.
Besides, the farmers were reached through various
communication modes such as ‘Flag Method’,
‘Knowledge on Wheels’, help line and multi-location
audio conferences that saved over 4,600 hectares of
paddy fields.
Leveraging technology, Reliance acted as a bridge
between government functionaries and fishermen.
Integrated Annual Report 2017–18Report on Corporate Social Responsibility
178
Campaign on Swachhata Hi Seva
Reliance Foundation
launched a massive
awareness and cleanliness
campaign titled Swachhata
Hi Seva across the
country. The week-long
campaign organised during
September-October, 2017
aimed at supporting the
Government of India’s
Swachh Bharat Mission.
The campaign mobilised
communities and enabled
them to actively participate
in the Swachh Bharat
Mission by ‘shramdaan’ ,
that is, donating labour. The
campaign covered 15 States
and Union Territories and
engaged around 1,00,000
people.
7) Other Initiatives
7.1) Contribution to Swachh Bharat
Reliance has been motivating its programme
beneficiaries across rural and urban areas on the
importance of cleanliness, hygiene and sanitation.
As part of this, awareness campaigns are carried
out to sensitise people about the advantages of
cleanliness. Reliance has been an active participant
in the ambitious Swachh Bharat Mission of
Government of India.
These campaigns actively engage community
members to drive change. Sensitised villagers are
leveraging government schemes and constructing
toilets. Almost 15,000 toilets have been constructed
so far and 87 villages declared as Open Defecation
Free by the government. Through digital platforms,
people were informed about the application
procedure for availing the benefits of government
schemes such as Sardar Awas Yojana, Pradhan
Mantri Gramin Awas Yojana, and so on.
7.2) Empowering Women through Collectivisation
and Financial Literacy
For various socio-cultural reasons, women have
been a disadvantaged group in India. Driven
by its belief in inclusive growth, Reliance with
its experience of working with marginalised
communities, undertook systematic efforts for
accelerating financial inclusion by promoting
financial literacy among them. Under this
programme, participants would learn the nuances
of personal finance, importance of savings and
would get formally linked to at least one formal
financial institution. Besides, rural women have been
supported to form Women Thrift Groups providing
them a platform to participate, drive and manage
the socio-economic change while being financially
self-reliant. Reliance’s initiatives for women take
intervention areas closer to achieving SDG 5
(Gender Equality).
The model has not only helped in wealth creation
but also enabled women in making their presence
felt in male-dominated spaces. Besides starting
their own enterprises, women have taken the lead
in addressing the pressing issues related to health,
RF Partnership with Government of Maharashtra
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review 41-179 Governance Financial Statements Notice
179
hygiene and sanitation that affect them and
their families. Till date, over 12,000 women have
been provided financial literacy trainings and
3,000+ rural women have formed 110 thrift groups
across 14 districts in 7 states, having collected over
`4.5 million
7.3) Skilling and Employment
Skilling the youth and creating right employment
opportunities for them is Government’s key priority.
Through its skilling and employment programme,
Reliance is working to make the youth employable
by equipping them with marketable skillsets and
providing placement support. This year, nearly
11,000 youth were provided skill training, of which
70% were assisted with placements across retail and
other sector.
Across rural areas, skill enhancement trainings were
provided to around 3,000 women and girls. These
trainings include paper quilling, jewellery, LED bulb
and lamp making, tailoring and embroidery. Through
another initiative, in addition to traditional medium of
sales, 700+ women were taught to create Facebook
page and WhatsApp groups to sell their products.
Together, the various skilling initiatives have benefitted
over 13,800 individuals across India.
7.4) Wildlife Conservation and Animal Welfare
Reliance supports several organisations that
are working for wildlife conservation and animal
welfare. These organisations protect wildlife
against poachers, reducing the incidence of wild
animals straying into human settlements, provide
relief and rehabilitation support to the injured wild
and domestic animals including rescue, treatment
and surgical care, providing shelter, etc. These
organisations also sensitise communities about
the importance of protecting wildlife, and avoiding
human-animal conflict.
7.5) Improving Access to Sports Infrastructure
Reliance installed a multi-sports complex in two
stadiums under Thane Municipal Corporation. This
facility has a specially designed net cage to suit all
playing fields with LED illuminated line markings to
facilitate the sports being played. The sports facility
can accommodate six different games: soccer, ring
hockey, volleyball, handball, cricket and tennis. With
the space for sportspersons and fitness enthusiasts
shrinking in urban areas, these multi-sports
stadiums in the centre of densely populated cities
address an acutely felt need.
Plantation
Integrated Annual Report 2017–18Report on Corporate Social Responsibility
180
Business Responsibility Report
Introduction:
At Reliance Industries Limited (RIL), sustainability is being viewed as being socially cognizant while remaining a technology
driven organisation that delivers stakeholder expectations. This Business Responsibility Report (BRR) is one of the avenues
to communicate the Company’s obligations and performance to all its stakeholders for FY 2017-18.
RIL believes that the foundations of economic growth can be strengthened if the entire society is a part of the growth story.
To achieve this vision, the Company strives to create value for India by elevating the quality of life across the entire
socio-economic spectrum. Furthermore, the Company believes in the effectiveness of communication as the first step
towards creating long-term stakeholder value.
This report conforms to the Business Responsibility Reporting (BRR) requirement of the Securities & Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’) and the National Voluntary
guidelines (NVG) on Social, Environmental and Economic Responsibilities of Business released by the Ministry of Corporate
Affairs, India. Furthermore, Reliance publishes its sustainability performance in a Sustainability Report which is prepared in
accordance with Global Reporting Initiative (GRI) standards and is externally assured. All the Sustainability Reports published
till date can be accessed at www.ril.com.
PRINCIPLE 1
PRINCIPLE 2
PRINCIPLE 3
Ethics, Transparency and
Accountability
Businesses should conduct and govern
themselves with Ethics, Transparency
and Accountability
Product Life Cycle Sustainability
Businesses should provide goods and
services that are safe and contribute
to sustainability throughout their life
cycle
Employees’ well-being
Businesses should promote the
well-being of all employees
PRINCIPLE 4
PRINCIPLE 5
PRINCIPLE 6
Stakeholder Engagement
Businesses should respect the
interests of, and be responsive
towards all stakeholders, especially
those who are disadvantaged,
vulnerable and marginalised
Human Rights
Businesses should respect and
promote human rights
Environment
Businesses should respect, protect
and make efforts to restore the
environment
PRINCIPLE 7
PRINCIPLE 8
PRINCIPLE 9
Policy Advocacy
Businesses, when engaged in influencing
public & regulatory policy, should do so
in a responsible manner
Inclusive Growth
Businesses should support inclusive
growth and equitable development
Customer Value
Businesses should engage with and
provide value to their customers, and
consumers in a responsible manner
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice Annexure 1
Section A: General Information about the Company
Disclosures
Information/Reference sections
181
Corporate Identity Number (CIN) of the Company
Name of the Company
Registered Address
Website
E-mail ID
Financial Year Reported
Sector(s) that the Company is engaged in (industrial
activity code-wise
L17110MH1973PLC019786
Reliance Industries Limited
3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 400 021, India
www.ril.com
investor.relations@ril.com
2017-18
Refining, Petrochemicals (Polymers, Polyester and Fibre Intermediates),
Exploration and Production of Oil & Gas and Textiles.
Industrial Group Description
061
192
201
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
203
062
131
139
Key Products of the Company
Manufactured capital
Page no. 138
As per National Industrial Classification – The Ministry of Statistics and Programme
Implementation
Number of operational locations and markets served
RIL has undertaken business activities in eight international locations. The
major locations include North America, Australia, Europe, East Africa, Middle
East and Asia. RIL has carried out business activities in over 50 domestic
locations. In addition to serving Indian markets, RIL exported to 113 countries
worldwide as on 31st March, 2018.
Corporate Governance Report Page no. 219
Section B: Financial Details of the Company
Disclosures
Paid up Capital
Total Turnover
Total profit after taxes
Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%)
List of activities in which expenditure in above mentioned disclosures has been incurred
*Based on average net profit of the Company for last three financial years
Section C: Other Details
Disclosures
Information/Reference sections
Information/Reference sections
`6,335 crore
`3,15,357 crore
`33,612 crore
*2.12% (`745 crore)
Report on Corporate Social
Responsibility Page no. 164
Participation of Subsidiary companies or any other
entities in RIL’s BR initiatives.
The number of RIL’s subsidiary companies as on 31st March, 2018 was 81 as per the
details given in Boards’ Report.
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 themes. All subsidiaries are aligned with the Group’s CSR
agenda and philosophy which gets implemented through Reliance Foundation.
During FY 2017-18, RIL’s operating subsidiaries and associates such as Reliance
Retail Limited, Reliance Corporate IT Park Limited etc. participated in various
initiatives across several areas including promotion of health care, promoting
education, cleanliness drives, rural development, etc. As part of its BR initiatives,
RIL also collaborates with the relevant external stakeholders like suppliers,
distributors, local communities, government and other entities in the value chain.
Integrated Annual Report 2017–18Business Responsibility Report 182
Section C: Other Details
Disclosures
Information/Reference sections
Stakeholders have the ability to influence the way a company is perceived.
RIL engages with several stakeholders such as suppliers, distributors, local
communities, government and other entities in the value chain. The Company
collaborates with all relevant stakeholders as part of its BR initiatives.
Considering the spread of RIL’s value chain, at present, the number of entities
which directly participate in the BR initiatives would be more than 60%.
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
The Corporate Social Responsibility and Governance (CSR&G) Committee of
the Board of Directors is responsible for implementation of BR policies. The
following are the members of the CSR&G Committee:
DIN Number: 00001879
•
Name: Shri Yogendra P. Trivedi (Chairman)
Designation: Independent Director
•
•
•
DIN Number: 00001620
Name: Shri Nikhil R. Meswani
Designation: Executive Director
DIN Number: 00074119
Name: Dr. Raghunath A. Mashelkar
Designation: Independent Director
DIN Number: 02787784
Name: Dr. Shumeet Banerji
Designation: Independent Director
Particulars
DIN Number
Name
Designation
Telephone Number
Email id
Details
00001620
Shri Nikhil R. Meswani
Executive Director
022 – 3555 5000
nikhil.meswani@ril.com
b. Details of the BR Head
2. GOVERNANCE RELATED TO BR
Frequency of assessing BRR performance
RIL assesses its BRR performance annually.
Frequency of publishing a Sustainability
Report and hyperlink for the same
RIL publishes Sustainability Report annually. Weblink for the report :
http://www.ril.com/Sustainability/CorporateSustainability.aspx
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
Annexure 2 – Details of Compliance
Principle-wise as per National Voluntary Guidelines (NVGs) BR Policy/Policies (Reply in Y/N):
Sl.
No.
1
Do you have policy/policies for…
Questions
P6
P5
P4
P3
P1
P2
Y
Y
Y
Y
Y
Y
183
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
Please refer page no. 184 for linkages of these policies with BR
principles and below for web links.
The policies have been communicated to RIL’s key internal
stakeholders. The BR policies are communicated through this report.
Besides, the Company continues to explore other formal channels to
communicate more with relevant stakeholders.
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.
The BR policy is evaluated internally. Policies pertaining to health,
safety and environment have been audited externally by DNV.
2
3
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)
4
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?
5
6
7
8
9
Does the Company have a grievance redressal mechanism
related to the policy/policies to address stakeholders’
grievances related to policy/policies?
10 Has the Company carried out independent audit/
evaluation of the working of this policy by an internal or
external agency?
Links
Environment Policy
http://www.ril.com/Sustainability/HealthSafety.aspx
Health, Safety and Environment Policy
http://www.ril.com/Sustainability/HealthSafety.aspx
Corporate Social Responsibility Policy
http://www.ril.com/DownloadFiles/IRStatutory/CSR-Policy.pdf
Our Code
http://www.ril.com/DownloadFiles/IRStatutory/ourcode.pdf
Code of Conduct
http://www.ril.com/DownloadFiles/IRStatutory/Code-of-Conduct.pdf
Values & Behaviours
http://www.ril.com/DownloadFiles/IRStatutory/VB.pdf
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.
Integrated Annual Report 2017–18Business Responsibility Report 184
Annexure 3
Linkage of Policies of RIL with BR Principles as per National Voluntary Guidelines (NVG) on Social, Environ-
mental & Economic Responsibilities
Principle
No.
1
Reference Document
Reference Section
NVG Principle
Businesses should conduct and govern
themselves with Ethics, Transparency
and Accountability
Businesses should provide goods and
services that are safe and contribute
to sustainability throughout their life
cycle
Businesses should promote the
well-being of all employees
Businesses should respect the
interests of, and be responsive towards
all stakeholders, especially those who
are disadvantaged, vulnerable and
marginalised
Businesses should respect and
promote human rights
Businesses should respect, protect
and make efforts to restore the
environment
Businesses, when engaged in
influencing public and regulatory policy,
should do so in a responsible manner
Businesses should support inclusive
growth and equitable development
Businesses should engage with and
provide value to their customers and
consumers in a responsible manner
Code of Conduct
Values and Behaviours
Our Code
Code of Conduct
Values and Behaviours
Corporate Social Responsibility Policy
Health, Safety & Environment Policy
Code of Conduct
Values and Behaviours
Code of Conduct
Our Code
Corporate Social Responsibility Policy
Section 2, 3, 5 and 7
Customer Value
Section 3
Section 6
Customer Value
Section 3
Please refer page number 183 for web link
Section 3, 4, 6 and 8
Excellence Value
Section 5 and 6
Section 5
Section 3
Code of Conduct
Our Code
Corporate Social Responsibility Policy
Environment Policy
Section 6 and 8
Section 5
Section 3
Please refer page number 183 for web link
Code of Conduct
Section 5 and 6
Our Code
Health, Safety & Environment Policy
Corporate Social Responsibility Policy
Values and Behaviours
Our Code
Code of Conduct
Corporate Social Responsibility Policy
Section 5
Please refer page number 183 for web link
Section 3
Customer Value
Section 2 & 5
Section 5
Section 3
2
3
4
5
6
7
8
9
Annexure 4
Section E: Principle-wise Performance
Principle 1: Ethics, Transparency and Accountability
Disclosures
Coverage of Code of Conduct policy and details of stakeholder complaints
received and resolved in FY 2017-18.
Information/Reference sections
Human capital Page no. 120
Corporate Governance Report Page no. 208
For Investor grievances please refer to Corporate
Governance Report Page no. 196
Principle 2: Products Life Cycle Sustainability
Disclosures
Information/Reference sections
Products and services incorporating environmental and social risks
a. Zero / low antimony spun lace: Reliance has
developed in-house technology which decreases
the requirement of antimony (a known carcinogen)
in continuous polymerisation for manufacturing
zero/low antimony spun lace fibres, used mainly in
hygiene products.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 185
Principle 2: Products Life Cycle Sustainability
Disclosures
Information/Reference sections
Products and services incorporating environmental and social risks
Recycled products and waste
Procedures for sustainable sourcing and procuring goods and services from
small and local vendors
Principle 3: Employees’ Well-being
Disclosures
Total workforce by various indicators of diversity (e.g. gender, physical
disability, contract type etc.) and efforts for their skill enhancement
b. Bulk tankers to supply products: RIL has increased
the PTA bag size from 1.1 MT to 1.2 MT at Hazira
and Dahej to reduce the use of packing material and
supplies via bulk tankers which results in reduced
handling, decreased contamination and increased
savings to customers.
c. Replacement of GPPS with PET: Polyethylene
Terephthalate (PET) is now used in place of General
Purpose Polystyrene (GPPS) on account of its
techno-economic benefits, better recyclability and
safer than GPPS.
Manufactured capital Page no. 138-139
Natural Capital Page no. 112-113
Social and Relationship Capital Page no. 144
Information/Reference sections
From over 15 nationalities, RIL’s total employee
strength as on 31st March, 2018 is 29,533 which
includes 1,521 female employees. The total number
of permanent employees with disabilities at RIL as on
31st March, 2018 is 70.
RIL takes the health and safety of its employees very
seriously and regularly conducts related training
programmes. RIL’s contractual employees receive
mandatory safety training before entering the
Company’s premises and also acquire on-the-job
training through the contractor and the Company.
At RIL, 71.92% of its permanent workforce received
safety and skill up-gradation trainings and 70.22%
of women employees received trainings through
classroom and web-based training programmes. Out
of 70 permanent employees with disabilities, 37.14%
received safety and skill up gradation trainings. RIL
ensures 100% employee participation in safety and
mock fire drills.
Human capital Page no. 114
Workforce representation and grievance redressal
Human capital Page no. 121
Principle 4: Stakeholder Engagement
Disclosures
Identification and engagement with stakeholders including the vulnerable and
marginalised groups
Information/Reference sections
Report on Corporate Social Responsibility
Page no. 164-179
Social and Relationship capital Page no. 142-143
Integrated Annual Report 2017–18Business Responsibility Report 186
Principle 5: Human Rights
Disclosures
Information/Reference sections
Company’s policy and practices for addressing human rights concerns
Human capital Page no. 120
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
Information/Reference sections
Natural capital Page no. 110-113
Board’s report Page no. 246-250
Natural capital Page no. 110
Information/Reference sections
Responsible policy advocacy in collaboration with policymakers
Social and Relationship capital Page no. 144-145
Principle 8: Inclusive Growth
Disclosures
Information/Reference sections
Details of the Company’s community development initiatives including
financial contribution and ensuring long-term sustainability of projects
Report on Corporate Social Responsibility
Page no. 164-179
Principle 9: Customer Value
Disclosures
Ensuring customer satisfaction while conforming to regulatory requirements
Social and Relationship capital
Page no. 141-142
Board’s Report
Page no. 235-239
In FY 2017-18, RIL has spent `745 crore on
community development initiatives.
Information/Reference sections
Social and Relationship capital
Page no. 142
As on 31st March 2018, 2,183 customer complaints
were received of which 2,080 have been successfully
resolved. As a protocol followed at RIL, all the
complaints received are resolved within 90 days.
Subsequently, most of the remaining complaints have
been resolved.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 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
187
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
Sustainable Development Goal
1.
No poverty –
End poverty
in all its forms
everywhere
2.
Zero hunger
– End hunger,
achieve food
security and
improved
nutrition
and promote
sustainable
agriculture
3.
Good health
and well-
being – Ensure
healthy lives
and promote
well-being for
all at all ages
Social and
relationship
capital
Social and
relationship
capital
Human
capital
NVG8
Businesses
should support
inclusive growth
and equitable
development
NVG2
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
NVG3
Businesses should
promote the
well-being of all
employees
References of illustrations
• Village transformation by a
woman leader
• Enhanced income and
livelihood among rural
marginal farmers
• Increased employment
opportunities in rural
and urban areas for
adults and youths
• Improved quality of life
• Ensuring water
• Farmers’ Enterprises: Key to
availability
Prosperity
• RF Jr NBA enters Guinness
Book of World Records
• Improved food and
nutrition security
• Eradication of hunger
and malnutrition
• Sustainable
agricultural
production
• Market linkages for
agricultural produce
• Improved availability
and accessibility of
healthcare services
• Provision of healthcare
services at subsidised
rates across RIL’s range
of facilities
• Saving lives of mothers
and children
• Improved care and
support for the people
affected by HIV
• Effective management
of non-communicable
diseases and silent
killers (diabetes &
hypertension)
• Lives of underprivileged
communities
enlightened through
comprehensive
eye-care services
• Addressing nutritional
deficiencies for building
healthy future
Integrated Annual Report 2017–18Business Responsibility Report 188
Sustainable Development Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
References of illustrations
• Enguru
• Chandra Kanwar: Pad Woman
from Sawai Madhopur
• Technology enabled safety
pendant
• Addressing inequalities
by providing education
support to students
from poorer
socio-economic
background
• Enhanced quality of
education
• Digital literacy
• Skill development
for better education
opportunities
• Sports for
development
• Improved education
infrastructure in
municipal schools
through partnerships
• Women empowerment
• Effective participation
of women in
development process
• Participation of women
in village decision
making body
• Skilling of women for
enhanced livelihood
opportunities
• Contribution to
Swachh Bharat
Abhiyan
• Transforming Lives: Water
Conservation in Sendhwa
• Contribution to Village Social
• Water security
• Conservation of water
Transformation Mission,
Maharashtra
through rain water
harvesting
• Improved sanitation
through construction
of toilets
• Cleaner villages
• Renewable energy
• Ecological balance
• Conservation of natural
resources
• Campaign on Swachhata Hi
Seva
• Sensitising “Go Green” as a part of
regular business
4.
5.
6.
7.
Quality
education
– Ensure
inclusive and
equitable
quality
education
and promote
lifelong
learning
opportunities
for all
Gender
equality –
Achieve gender
equality and
empower all
women and
girls
Clean water
and sanitation
– Ensure
availability and
sustainable
management
of water and
sanitation for
all
Affordable and
clean energy –
Ensure access
to affordable,
reliable,
sustainable
and modern
energy for all
NVG8
Businesses
should support
inclusive growth
and equitable
development
Human
capital
Social and
relationship
capital
Human
capital
NVG5
Businesses should
respect and
promote human
rights
NVG6
Businesses should
respect, protect
and make efforts
to restore the
environment
Natural
capital
Social and
relationship
capital
NVG2
Businesses should
provide goods and
services that are safe
and contribute to
sustainability throughout
their life cycle
Natural capital
Manufactured
capital
Intellectual
capital
NVG6
Businesses should
respect, protect and
make efforts to restore
the environment
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice Sustainable Development Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
8.
Decent work and
economic growth
– Promote
sustained,
inclusive and
sustainable
economic
growth, full
and productive
employment and
decent work for
all
NVG3
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
9.
Industry,
innovation and
infrastructure
– Build resilient
infrastructure,
promote
sustainable
industrialisation
and foster
innovation
NVG6
Businesses should
respect, protect
and make efforts
to restore the
environment
Manufac-
tured capital
Intellectual
capital
Social and
relationship
capital
• Set up village
knowledge centres
• Education through
digital medium
• Access to information
• Infrastructure
development in rural
and urban areas
10. Reduced
NVG5
inequalities
– Reduce
inequality
within and
among
countries
Businesses should
respect and
promote human
rights
Human
capital
• Women empowerment
• Education for the
underprivileged and
specially-abled
• Support for the
specially-abled
• Empowerment of the
underprivileged
189
References of illustrations
• Diversity & inclusion Changing
societal perspective
• Facilitating entrepreneurial
spirit across value chain
• Business stewardship From
waste water to farming
• LEARNET
• Lynda.com
• Machine learning & data
analytics
• LegalDesk
• Transforming Lives: Water
Conservation in Sendhwa
• Farmers’ Enterprises: Key to
Prosperity
• Virtual platforms for informed
decision-making
• Culture of energy saving at shop
floor level
• Quality assurance through
surprise visits over 200 retail
outlets
• Engagement with customer-
Truck Drivers and Airlines
• Organisation agility to respond
swiftly Enhancing customer
experience
• The principle of Safety first–
immune to challenging economic
cycle Process safety, Cyber
Security and Enhancing Fire &
Safety System
• Leap frogging leadership
position – union budget analysis
• Machine learning & data analytics
• New Catalyst Development
• Spent catalyst
• Complex Product Technology
• Virtual platforms for informed
decision-making
• Diversity & inclusion Changing
societal perspective
Integrated Annual Report 2017–18Business Responsibility Report 190
Sustainable Development Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
References of illustrations
• Promotion of arts and
• Waste to value through co-
culture
processing
• Protection of Indian
heritage
• Infrastructure
development in urban
areas
• Revitalisation of city
infrastructure
• Tree plantation
• Sustainable
production
• Innovation
• Energy conservation
11. Sustainable
cities and
communities
– Make cities
and human
settlement
inclusive, safe,
resilient and
sustainable
12. Responsible
production and
consumption
– Ensure
sustainable
consumption
and production
patterns
Social and
relationship
capital
Manufactured
capital
NVG9
Businesses should
engage with and
provide value to
their customers
and consumers in a
responsible manner
NVG2
Businesses should
provide goods and
services that are
safe and contribute
to sustainability
throughout their life
cycle
NVG9
Businesses should
engage with and
provide value to
their customers
and consumers in a
responsible manner
13. Climate action
NVG6
– Take urgent
actions to
combat climate
original design
change and its
impacts
Businesses should
respect, protect
and make efforts
to restore the
environment
Natural
capital
• Tree plantation
• Tackling climate
change using green
technology
• Timely relief and
rehabilitation to
communities affected
by natural calamities
• Disaster-struck lives
rescued
• Disaster risk mitigation
plans in consultation
with communities
to combat the major
natural disasters/
climatic events such as
cyclones
• Facilitating entrepreneurial
spirit across value chain
• Project product loss control
• Facilitating entrepreneurial
spirit across value chain
• Business stewardship From
waste water to farming
• Recycling green Waste
• Reduction in fresh water
consumption by design
• Reducing Material Intensity
through 100% Recycled
Products
• Green solution to India’s
growing energy demand using
waste as a resource
• Jio Ground Based Mast
• LegalDesk
• Village transformation by a
woman leader
• Switching spinneret cleaning
from a hazardous to a safer
process
• Organisation agility to respond
swiftly- Change in Law and
Emission standards
• Reliance adopted 4 flood
ravaged villages in Gujarat
Natural
capital
• Water security
• Monitoring environmental
footprint
14. Life below
water –
Conserve and
sustainably
use the oceans,
seas and marine
resources for
sustainable
development
NVG6
Businesses should
respect, protect
and make efforts
to restore the
environment
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 191
References of illustrations
• Monitoring environmental
footprint
Sustainable Development Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
Natural
capital
NVG6
Businesses should
respect, protect
and make efforts
to restore the
environment
• Tree plantation
• Soil conservation
• Enhancement of
biodiversity
• Wildlife conservation
• Livestock care and
treatment
• Soil health monitoring
15.
Life on land –
Protect, restore
and promote
sustainable use
of terrestrial
ecosystems,
sustainably
manage
forests, combat
desertification,
and halt and
reverse land
degradation and
halt biodiversity
loss
16. Peace, justice
and strong
institutions
– Promote
peaceful and
inclusive
societies for
sustainable
development,
provide access
to justice for
all and build
effective,
accountable
and inclusive
institutions at
all levels
17.
Partnerships
for the goals
– Strengthen
the means of
implementation
and revitalise
the global
partnership
for sustainable
development
NVG1
Businesses should
conduct and
govern themselves
with Ethics,
Transparency and
Accountability
NVG4
Businesses should
respect the
interests of, and be
responsive towards
all stakeholders,
especially
those who are
disadvantaged,
vulnerable and
marginalised
NVG7
Businesses,
when engaged in
influencing public
and regulatory
policy, should do
so in a responsible
manner
NVG7
Businesses,
when engaged in
influencing public
and regulatory
policy, should do
so in a responsible
manner
• Enhancing Fire & Safety system
• Technology enabled safety
pendant
Social and
relationship
capital
• Formation of
producer companies
for sustainable
livelihood
• Women
empowerment by
forming thrift groups
• Promote peaceful and
inclusive societies for
long-term sustainable
development
• Reliance partners with ISRO –
Make in India
Social and
relationship
capital
• Partnership with like-
minded organisations
including government
and non-government
organsations,
technical agencies,
etc.
Integrated Annual Report 2017–18Business Responsibility Report 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
Organizational 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 305: Emissions 2016
GRI 306: Effluents and waste 2016
GRI 303: Water 2016
GRI 304: Biodiversity 2016
GRI 307: Environmental Compliance 2016
Location of Disclosure & Page Number
Reliance at a Glance (Page 2)
Strategic Framework (Page 16)
Human Capital (Page 120)
Corporate Governance Report (Page 196)
Stakeholder Engagement (Page 142)
Reliance’s Sustainability Reporting Journey (Page 149)
Corporate Governance Report (Page 199)
Human Capital (Page 114-115)
Human Capital (Page 118-120)
Natural Capital (Page 113)
Natural Capital (Page 113)
Natural Capital (Page 113)
Natural Capital (Page 110)
Natural Capital (Page 111)
Natural Capital (Page 111-112)
Natural Capital (Page 111)
Natural Capital (Page 112-113)
Natural Capital (Page 110-111)
Energy efficiency of operations & Carbon abatement and offsetting
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 412: Human rights assessment 2016
GRI 408: Child Labor 2016
GRI 409: Forced or Compulsory labor 2016
GRI 204: Procurement practices 2016
Natural Capital (Page 110)
Natural Capital (Page 110-111)
Board’s Report Annexure VI (Page 246-250)
Natural Capital (Page 111)
Social and Relationship Capital (Page 141-148)
Social and Relationship Capital (Page 141-148)
Social and Relationship Capital (Page 141-148)
Social and Relationship Capital (Page 144)
Social and Relationship Capital (Page 144)
Human capital (Page 120)
Social and Relationship Capital (Page 144)
Human capital (Page 121)
Social and Relationship Capital (Page 144)
Human capital (Page 121)
Social and Relationship Capital (Page 144)
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 193
GRI Standard
Community Development
GRI 103: Management Approach 2016
GRI 203: Indirect economic impacts2016
GRI 413: Local communities 2016
Ethics, Integrity and Compliance
GRI 103: Management Approach 2016
GRI 205: Anti-corruption 2016
GRI 419: Socio economic compliance 2016
Talent Attraction and Retention
GRI 103: Management Approach 2016
GRI 401: Employment 2016
GRI 405: Diversity and Equal opportunity 2016
GRI 404: Training and Education 2016
GRI 402: Labor/Management Relations 2016
Economic Performance
GRI 103: Management Approach 2016
GRI 201: Economic Performance 2016
Location of Disclosure & Page Number
Social and Relationship capital (Page 141)
Corporate Social Responsibility (Page 164-179)
Social and Relationship capital (Page 144)
Corporate Social Responsibility (Page 164-179)
Social and Relationship capital (Page 142)
Corporate Social Responsibility (Page 164-179)
Human capital (Page 120-121)
Human capital (Page 120-121)
Human capital (Page 120-121)
Board’s Report- Annexure III (Page 235-239)
Human capital (Page 114-123)
Human capital (Page 116)
Human capital (Page 116)
Human capital (Page 117-118)
Human capital (Page 121)
Financial capital (Page 140)
Financial Highlights (Page 40)
Financial capital (Page 140)
Financial Highlights (Page 40)
Asset Utilisation and Reliable Operations*
GRI 103: Management Approach 2016
Intellectual capital (Page 124-131)
Security and Asset Protection*
GRI 103: Management Approach 2016
For Sustainability Report please visit www.ril.com.
* Non GRI aspect
Manufactured capital (Page 132-139)
Integrated Annual Report 2017–18Business Responsibility Report 194
Independent Reasonable Assurance Statement to Reliance Industries Limited on their Sustainability
Disclosures in the Integrated Annual Report for Financial Year 2017-18
To the Management of Reliance Industries Limited, 3rd Floor,
Maker Chambers IV, 222, Nariman Point, Mumbai 400021,
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 2017-18. 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, United Nation’s Sustainable Development
Goals (UN SDGs), American Petroleum Institute /
The International Petroleum Industry Environmental
Conservation Association (API/IPIECA) Sustainability
Reporting Guidelines, and Business Responsibility Reporting
Framework based on the principles of National Voluntary
Guidelines on Social, Environmental and Economic
Responsibilities of Business (NVG – SEE), World Business
Council for Sustainable Development’s focus areas and
Accountability’s AA1000APS 2008 (Principles of Inclusivity,
Materiality and Responsiveness)
• Other Frameworks/Initiatives
RIL, has also referred to new and emerging frameworks
such as Task Force on Climate-related Financial
Disclosures (TCFD) recommendations, United Nations
Guiding Principles on Business and Human Rights (UNGP),
United Nations Global Compact (UNGC) Principles, Global
Recycle Standard (GRS) Version 3.0, Natural Capital
Protocol, Social return on investment (SROI) and the
selected Government of India’s initiatives supported by
NITI Aayog.
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.
Scope, Boundary 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,
2017 to 31st March, 2018.
•
•
•
The assurance process was limited to the selected
sustainability disclosures in Business Responsibility
Report, Management’s Discussion and Analysis, Board’s
Report and Corporate Social Responsibility Report.
The sustainability disclosures covered as part of the scope
of the assurance process included water recycled and
reused, reduction of energy consumption, total number of
employees at RIL, total man-hours of training provided to
RIL’s workforce.
The selected disclosures on the other reporting criteria
and frameworks/initiatives were restricted to those
that were shared by the company with KPMG and are
mentioned in this report.
•
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.
Our assurance procedures also included:
•
Assessment of RIL’s reporting procedures regarding their
consistency with the application of GRI Standards.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 195
Evaluating the appropriateness of the quantification
methods used to arrive at the sustainability disclosures
presented in the Report.
We have provided our observations to the Company in a
separate management letter. These, do not, however, affect
our conclusions regarding 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 2017-18.
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.
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 scope
and limitations, we conclude that
• The selected sustainability parameters and disclosures
presented in the Report by RIL are fairly represented.
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
topics, 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.
• The sustainability disclosures as defined under scope of
assurance are in alignment with the GRI standards.
Santhosh Jayaram
Partner
• The company has initiated its alignment on sustainability
disclosures with other reporting criteria and emerging
frameworks as mentioned under reporting criteria.
KPMG India
May 21, 2018
Integrated Annual Report 2017–18Business Responsibility Report 196
Corporate Governance Report
K. Sethuraman
“Good governance, keeping the values and ethics on top is DNA of Reliance. Our
commitment to Corporate Governance goes beyond compliance with regulatory
requirements. We have implemented several best governance practices. Our
aspiration is to be the most admired, innovative and value generating organisation
for all our stakeholders and our governance system is embedded with it.”
“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
This report is prepared in accordance with the provisions
of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations,
2015 (‘Listing Regulations’), and the report contains the
details of Corporate Governance systems and processes at
Reliance Industries Limited (RIL).
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 viz. 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, awards & recognitions,
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, Board Committees, Finance, Compliance and
Assurance teams, Auditors and the senior management.
Our employee satisfaction is reflected in the stability of our
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 197
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.
On standalone basis, we have grown by a Compounded
Annual Growth Rate (CAGR) of Revenues 23.5%, Earnings
Before Interest Tax Depreciation and Amortisation
(EBITDA) 25.4% and Net Profit 26.3%. The financial
markets have endorsed our sterling performance and the
market capitalisation has increased by CAGR of 31.4%
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 2.3 million.
For decades, RIL is growing in step with India’s industrial and
economic development. The Company has helped transform
the Indian economy with large 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 this report.
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. 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 CMD is responsible for corporate
strategy, brand equity, planning, external contacts and all
management matters.
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.
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 directors’ succession and
provide constructive feedback and advice on performance
evaluation to directors.
Integrated Annual Report 2017–18Corporate Governance Report 198
Board Leadership
A majority of the Board, i.e. 8 out of 14 Directors, 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 review inter alia include strategic review
from each of the Committees, a detailed analysis and review
of annual operating plans, capital allocation and budgets.
Additionally, the Board reviews 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
•
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 Director’s
independence
• 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, were appointed as
Auditors of the Company at the Annual General Meeting held
on July 21, 2017, for a term of 5 (five) consecutive years. 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 all businesses
of the Company and that of 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 environmental laws.
At the heart of the 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:
• Remuneration Policy for Directors, Key Managerial Personnel
• The Company has a designated Lead Independent Director
and other employees
with a defined role.
• Policy for determining Material Subsidiaries
• All securities related filings with Stock Exchanges are
• Code of Practices and Procedures for Fair Disclosure of
Unpublished Price Sensitive Information
• Policy for Preservation of Documents
reviewed every quarter by the Stakeholders’ Relationship
Committee.
• The Company has independent Committees for matters
related to Corporate Governance and stakeholders’
interface and nomination of Board members.
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• The Company’s internal audit is also conducted by
10. Social return on investment (SROI),
independent auditors.
11. The Global Recycle Standards (GRS) Version 3.0 for
• The Company undergoes quarterly secretarial compliance
traceability of fibres, and
certification from an independent company secretary who is
in whole-time practice.
12. Prime Minister’s Office (PMO) initiatives for
India / NITI Aayog.
Business 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 has been publishing Sustainability Reports annually
since FY 2004-05 based on the Global Reporting Initiative’s
(GRI) reporting guidelines. For the last decade, the reports
have been GRI checked with an ‘A+’ application level.
Furthermore, the Company published its first sustainability
report according to GRI Standards’ (including Oil and Gas
sector disclosures) ‘In accordance – Comprehensive’ option
which was introduced in 2016-17. The report has been
externally assured (Type II high level) indicating highest
level of comprehensive disclosures for GRI Standards. RIL
is also a member of World Business Council of Sustainable
Development (WBCSD) and Global Reporting Initiative (GRI).
WBCSD’s “Reporting matters” 2015 & 2017 has recognized
RIL’s sustainability report as leading example of the best
practices. The reports are available at http://www.ril.com/
Sustainability/CorporateSustainability.aspx
In addition to GRI and IR frameworks, this year’s Integrated
Annual Report respects the following 12 frameworks:
1. United Nation’s Sustainable Development Goals (UN SDGs),
2. American Petroleum Institute / The International
Petroleum Industry Environmental Conservation
Association (API/IPIECA),
3. United Nations Global Compact (UNGC) Principles,
4. Business Responsibility Framework based on the
principles of National Voluntary Guidelines on Social,
Environmental and Economic Responsibilities of Business
(NVG - SEE),
5. World Business Council for Sustainable Development’s
(WBCSD’s) focus areas,
6. Greenhouse Gas (GHG) Protocol,
7. Task Force on Climate-related Financial Disclosures
(TCFD) recommendations,
8. Natural Capital Protocol (NCP),
9. United Nations Guiding Principles on Business and Human
Rights (UNGP),
Integrated Reporting
RIL has been at the forefront of adopting an integrated
thinking in the Company’s management approach. This
approach reflects in the Company’s business model which
stands on the foundation of value creation for all stakeholder
groups. While the model is designed to deliver superior
financial performance, it also ensures that in the process,
there is significant amount of value addition across the
organisation’s value chain and its related stakeholder groups.
RIL is a firm believer that the success of a business is not
merely defined by the financial performance of the Company
but also on how well it is able to meet its ambitions while
maintaining the balance of the natural ecosystem and meeting
the expectations of the people who are associated with it.
Ensuring long-term societal value creation and propagating
technological advancement are equally critical factors for
the Company’s long-term sustainability. For years, RIL has
been living this philosophy and has based its business and
investment decisions on this integrated approach.
Taking one step further in this direction, RIL published its
maiden Integrated Annual Report in the FY 2016-17 aligned
with the International Integrated Reporting Council’s (IIRC)
framework. The journey has been continued this year
as well with renewed vigor and focus. The concept of the six
capitals of business as suggested by the framework has
been ingrained into the Company’s management philosophy
and has become an important enabler for RIL’s value creation
story. This integrated annual report builds on this story to
showcase the Company’s contribution towards each of the
six capitals viz.:
1. Natural Capital:
RIL has been focusing on the five primary areas of
environmental preservation, viz. clean air, clean water,
preventing soil contamination, preserving flora and fauna
and diligent use of scarce resources. The Company’s
intent to maximise positive impacts across these five
dimensions are evident in its attempts to move towards
a low-carbon energy mix and enhancing waste material
and water recycling across its operations. Several steps
have also been taken to propagate a rich biodiversity
in the areas of its operations. Management of residual
impacts is being handled by implementing best available
technologies which are more efficient and also through
significant investments in pollution control equipment.
Integrated Annual Report 2017–18Corporate Governance Report 200
2. Human Capital:
RIL’s focus is on creating an enabling work environment
which provides a platform to all its workers to learn and
grow. RIL is committed to creating a diverse workforce
and provides equal opportunity to all its employees. The
Company’s HR framework is working towards creating
a culture where employees are encouraged to drive
performance while upholding the organisation’s value
system.
3. Intellectual Capital:
The role of technology holds the key to unlocking value
across all dimensions. RIL has leveraged on its position as
a smart buyer of technology in the past to evolve and build
in-house capabilities to customise existing technologies
and develop new ones. The Company has built a
significant resource pool and is committed to enhance its
efforts in the future.
4. Manufactured Capital:
Over FY 2017-18, RIL has been able to successfully
commission the refinery off gas cracker plant at
Jamnagar. The DTA pet-coke gasification has commenced
operations and is undergoing stabilisation activities,
which is aimed at utilising the bottom-of-the-barrel crude
and contribute further to the nation’s energy security.
5. Financial Capital:
RIL retained its domestic credit ratings of “CRISIL AAA”
from CRISIL and “IND AAA” from India Ratings and an
investment grade rating for its international debt from
Moody’s as Baa2 and BBB+ from S&P. RIL is able to access
capital from diversified markets at competitive rates.
6. Social and Relationship Capital:
RIL has worked alongside its varied stakeholder groups
to further the goal of value creation. With its vendors and
suppliers, it works on developing new and unique solutions
and products. With the local communities, RIL has
established various programmes for social development
which result in long-term, equitable economic growth. RIL
also set up the GenNext Hub, a uniquely positioned global
programme to help start-ups, in scaling up.
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 the Company’s
Registrars and Transfer Agents, details of which are available
on the Company’s website. RIL ensures that complaints of its
shareholders are responded to promptly. A comprehensive
and informative shareholders’ referencer is available on the
website of the Company.
Role of the Company Secretary in overall
Governance Process
The Company Secretary plays a key role in ensuring that the
Board (including committees thereof) procedures are followed
and regularly reviewed. The Company Secretary ensures that
all relevant information, details and documents are made
available to the Directors and senior management for effective
decision-making at the meetings. The Company Secretary
is primarily responsible to assist and advice the Board in the
conduct of affairs of the Company, to ensure compliance with
applicable statutory requirements, 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
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
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.
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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 Directorship(s) and Membership(s) 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 the 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, regulatory 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 and
acquaint with the operations of the Company.
The details of such familiarisation programmes for
Independent Directors are put up on the Company’s
website 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:
• To preside over all meetings of Independent Directors
• To ensure there is an adequate and timely flow of
information to Independent Directors
• To liaise between the Chairman and Managing Director, the
Management and the Independent Directors
• To preside over meetings of the Board and Shareholders
when the Chairman and Managing Director is not present, or
where he is an interested party
• To perform such other duties as may be delegated to the
Lead Independent Director by the Board / Independent
Directors
Meetings of Independent Directors
The Company’s Independent Directors met three times
during the financial year 2017-18 without the presence of
Executives. Such meetings were conducted to enable the
Independent Directors to discuss matters pertaining to
the Company’s affairs and put forth their views to the Lead
Independent Director. The Lead Independent Director
takes appropriate steps to present Independent Directors’
views to the Chairman and Managing Director.
Code of Conduct
The Company has in place a comprehensive Code of
Conduct (‘the Code’) applicable to the Directors and
employees. The Code is applicable to Non-Executive
Directors including Independent Directors to such an 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 core values of the Company viz.
Customer Value, Ownership Mindset, 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/
DownloadFiles/IRStatutory/Code-of-Conduct.pdf 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 a criteria for evaluation of the
performance of the Directors including Independent
Directors. The said criteria provides certain parameters
like attendance, acquaintance with business, communicate
inter se board members, effective participation, domain
Integrated Annual Report 2017–18Corporate Governance Report 202
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 Directorship(s), Membership(s) / Chairmanship(s)
of Committees are put up on the Company’s website and
can be accessed at http://www.ril.com/OurCompany/
Leadership/BoardOfDirectors.aspx
Board Meetings, 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
and Committee 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 in addition to
approving Company’s 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 /
Committee meetings.
The agenda and notes on agenda are circulated to Directors
in advance, and in the defined agenda format. All material
information is incorporated in the agenda for facilitating
meaningful and focused discussions at the meeting. Where
it is not practicable to attach any document to the agenda,
it is tabled before the meeting with specific reference
to this effect in the agenda. In special and exceptional
circumstances, additional or supplementary item(s) on the
agenda are permitted.
All Board and Committee meetings’ agenda papers are
disseminated electronically on a real-time basis, by
uploading them on a secured online application specifically
designed for this purpose, thereby eliminating circulation of
printed agenda papers.
Recording Minutes of Proceedings at Board and
Committee Meetings
The Company Secretary records minutes of proceedings
of each Board and Committee meeting. Draft minutes
are circulated to Board / Committee members for their
comments as prescribed under Secretarial Standard-1. The
minutes are entered in the Minutes Book within 30 days from
the conclusion of the meeting.
Post Meeting follow-up Mechanism
The guidelines for Board / Committee meetings facilitate
an effective post meeting follow-up, review and reporting
process for decisions taken by the Board and
Committees thereof.
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Important decisions taken at Board / Committee meetings
are communicated promptly to the concerned departments
/ divisions. Action taken report on decisions / minutes of the
previous meeting(s) is placed at the succeeding meeting of
the Board / Committees for noting.
Compliance
The Company Secretary, while preparing the agenda, notes
on agenda and minutes of the meeting(s), is responsible for
and is required to ensure adherence to all applicable laws and
regulations, including the Companies Act, 2013 read with rules
issued thereunder, Listing Regulations and Secretarial Standards
issued by the Institute of Company Secretaries of India.
Number of Board Meetings
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:
Date
April 24, 2017
July 20, 2017
July 21, 2017
October 13, 2017
January 19, 2018
March 23, 2018
Board Strength
14
14
14
14
14
14
No. of Directors Present
14
14
14
14
14
14
Attendance of Directors at Board Meetings, last Annual General Meeting and number of other
Directorship(s) and Chairmanship(s) / Membership(s) of Committees of each Director in various
Companies:
Name of the Director
Attendance at meetings
during 2017-18
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
Dr. Shumeet Banerji#
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
Board
6
6
6
3
6
6
6
6
6
3
6
6
6
6
6
AGM
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
NA
Yes
Yes
Yes
Yes
Yes
No. of other
Directorship(s) as
on 31-03-2018
(1)
5
Nil
7
NA
6
2
10
8
2
1
4
1
2
4
Nil
No. of Membership(s) / Chairmanship(s) of
Committees in other Companies as on 31-03-2018
(2)
Nil
Nil
2
NA
2
2
1
6 (including 5 as Chairman)
2
Nil
Nil
1 (as Chairman)
Nil
4
Nil
NA - Not Applicable
(1) The Directorships, held by Directors as mentioned above, do not include directorship(s) in foreign companies.
(2)
In accordance with Regulation 26 of the Listing Regulations, Membership(s) / Chairmanship(s) of only Audit Committees and
Stakeholders’ Relationship Committees in all public limited companies have been considered.
* Ceased to be a Director, w.e.f. July 21, 2017. Three meetings were held during his tenure.
# Appointed as a Director, w.e.f. July 21, 2017. Three meetings were held since his appointment.
Video/tele-conferencing facility is offered to facilitate Directors to participate in the meetings.
The number of directorship(s), committee membership(s) / chairmanship(s) of all Directors is / are within the respective
limits prescribed under the Companies Act, 2013 and the Listing Regulations.
Integrated Annual Report 2017–18Corporate Governance Report 204
COMMITTEES
Details of the Committees and other related information are provided hereunder:
Composition of Committees of the Company
Audit Committee
1.
2.
3.
4.
Yogendra P. Trivedi
Independent Director
(Chairman of the Committee)
Dr. Raghunath A. Mashelkar
Independent Director
Adil Zainulbhai
Independent Director
Raminder Singh Gujral
Independent Director
Human Resources, Nomination and Remuneration Committee
1.
2.
3.
4.
5.
Adil Zainulbhai
Independent Director
(Chairman of the Committee)
Yogendra P. Trivedi
Independent Director
Dr. Raghunath A. Mashelkar
Independent Director
Raminder Singh Gujral
Independent Director
Dr. Shumeet Banerji
Independent Director
Stakeholders’ Relationship Committee
Corporate Social Responsibility and Governance Committee
1.
2.
3.
4.
Yogendra P. Trivedi
Independent Director
(Chairman of the Committee)
Nikhil R. Meswani
Executive Director
Hital R. Meswani
Executive Director
Prof. Ashok Misra
Independent Director
1.
2.
3.
4.
Yogendra P. Trivedi
Independent Director
(Chairman of the Committee)
Nikhil R. Meswani
Executive Director
Dr. Raghunath A. Mashelkar
Independent Director
Dr. Shumeet Banerji
Independent Director
Risk Management Committee
Health, Safety and Environment Committee
1.
2.
3.
4.
5.
Adil Zainulbhai
Independent Director
(Chairman of the Committee)
Hital R. Meswani
Executive Director
P. M. S. Prasad
Executive Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Finance Committee
1.
2.
3.
4.
5.
Hital R. Meswani
Executive Director
(Chairman of the Committee)
P. M. S. Prasad
Executive Director
Pawan Kumar Kapil
Executive Director
Prof. Ashok Misra
Independent Director
Dr. Raghunath A. Mashelkar
Independent Director
1.
2.
3.
Mukesh D. Ambani
Chairman and Managing Director (Chairman of the Committee)
Nikhil R. Meswani
Executive Director
Hital R. Meswani
Executive Director
K. Sethuraman, Group Company Secretary and Chief Compliance Officer, is the Secretary of all the Committees.
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Meetings of Committees held during the year and Directors’ Attendance:
Committees of the
Company
Audit
Committee
Meetings held
Directors’ Attendance
Mukesh D. Ambani
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^
Shumeet Banerji#
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil
11
NA
NA
11
NA
NA
NA
11
11
11
NA
NA
NA
NA
NA
NA
NA - Not a member of the Committee
Human
Resources,
Nomination
and
Remuneration
(HRNR)
Committee
4
Corporate
Social
Responsibility
and
Governance
(CSR&G)
Committee
4
NA
NA
4
1
NA
NA
4
4
2
2
NA
NA
NA
NA
NA
NA
NA
4
2
NA
NA
4
NA
NA
2
NA
3
NA
NA
NA
Stakeholders’
Relationship
Committee
Health,
Safety and
Environment
(HSE)
Committee
Finance
Committee
Risk
Management
Committee
5
NA
NA
5
NA
5
NA
NA
NA
NA
NA
NA
5
4
NA
NA
4
NA
NA
NA
1
2
NA
2
NA
NA
NA
NA
NA
4
4
3
19
19
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
19
19
NA
NA
5
NA
NA
NA
NA
NA
NA
NA
5
NA
NA
NA
NA
5
5
NA
* Ceased to be a member of Committees w.e.f. July 21, 2017. (1 meeting of HRNR Committee, 2 meetings of CSR&G Committee and 1 meeting of HSE Committee
were held during his tenure).
@ Appointed as a member of HSE Committee w.e.f. September 27, 2017. (2 meetings were held since his appointment).
$ Appointed as a member of HSE Committee w.e.f. September 27, 2017. (2 meetings were held since his appointment).
^ Appointed as a member of HRNR Committee w.e.f. September 27, 2017. (2 meetings were held since his appointment).
# Appointed as a member of HRNR Committee and CSR&G Committee w.e.f. September 27, 2017. (2 meetings of each Committee were held since his appointment).
Procedure at Committee Meetings
The Company’s guidelines relating to Board meetings are
applicable to Committee meetings. Each Committee has the
authority to engage outside experts, advisors and counsels
to the extent it considers appropriate to assist in its function.
Minutes of proceedings of Committee meetings are
circulated to the respective committee members and placed
before Board meetings for noting.
Terms of Reference and other Details
of Committees
Audit Committee
The Committee’s composition and terms of reference are in
compliance with the provisions of Section 177 of the Companies
Act, 2013 and Regulation 18 of the Listing Regulations. The
composition of Committee is given in this Report.
Members of the Audit Committee possess
requisite qualifications.
Terms of Reference of the 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.
• Recommendation for appointment, remuneration and
terms of appointment of auditors, including cost auditors,
of the Company.
• Approval of payment to 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 its approval, with particular reference to:
(a) matters required to be included in the Directors’
Responsibility Statement to be included in the
Board’s Report;
(b) changes, if any, in accounting policies and practices and
reasons for the same;
Integrated Annual Report 2017–18Corporate Governance Report
206
(c) major accounting entries involving estimates based on
• To look into the reasons for substantial defaults, in the
the exercise of judgment by management;
(d) significant adjustments made in the financial
statements arising out of audit findings;
(e) compliance with listing and other legal requirements
payment to the depositors, debenture holders, shareholders
(in case of non-payment of declared dividend) and creditors.
• (a) To review the functioning of the Whistle-blower
mechanism;
relating to financial statements;
(b) To oversee the vigil mechanism
(f) disclosure of any related party transactions;
(g) modified opinion(s) in the draft audit report.
•
Approval of appointment of Chief Financial Officer after
assessing qualifications, experience and background etc. of
the candidate.
• Reviewing, with the management, the quarterly financial
statements before submission to the Board for approval.
• Mandatorily review the following:
• Reviewing, with the management, the statement of uses /
application of funds raised through an issue (public issue,
rights issue, preferential issue, etc.), the statement of
funds utilised for the 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 auditor’s independence and
performance and effectiveness of audit process.
• Approval or any subsequent modification of transactions
(a)
(b)
(c)
(d)
(e)
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;
The appointment, removal and terms of
remuneration of the chief internal auditor;
with related parties of the Company.
(f) Statement of deviations:
• 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.
• (a) Reviewing, with the management, performance of
statutory and internal auditors;
(i)
(ii)
quarterly statement of deviation(s) including
report of monitoring agency, if applicable,
submitted to stock exchanges(s) in terms of
Regulation 32(1) of the Listing Regulations.
annual statement of funds utilised for purpose
other than those stated in the offer document
/ prospectus in terms of Regulation 32(7) of the
Listing Regulations.
(b) Reviewing, with the management, adequacy of the
• Reviewing financial statements, in particular the investments
internal control systems.
made by the Company’s unlisted subsidiaries.
• Reviewing the adequacy of internal audit function, if any,
including the structure of 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 there on.
• 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.
• Note report of compliance officer as per SEBI (Prohibition of
Insider Trading) Regulation, 2015.
• Formulating the scope, functioning, periodicity of and
methodology for conducting the internal audit.
• Annual performance evaluation of the Committee
• Review show cause, demand, prosecution notice(s) and
penalty notice(s), which are materially important.
• Review any material default in financial obligations to and by
the listed entity, or substantial non-payment for goods sold
by the Company.
• Review any issue, which involves possible public or product
liability claims of substantial nature, including any judgement
or order which may have passed strictures on the conduct of
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the listed entity or taken an adverse view regarding another
enterprise that may have negative implications on the
Company.
Terms of Reference of the Committee inter alia include the
following
• Formulation of the criteria for determining qualifications,
• Review details of joint venture or collaboration agreement.
• Review sale of investments, subsidiaries, assets which are
material in nature and not in normal course of business.
• Review quarterly details of foreign exchange exposures and
the steps taken by management to limit the risks of adverse
exchange rate movement, if material.
• To carry out any other function as is mandated by the
Board from time to time and / or enforced by any statutory
notification, amendment or modifications 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, 2017 was August 19, 2017 and the cost audit
report was filed by the Company on August 11, 2017. The cost
audit report of the Company for financial year ended
March 31, 2018 will be filed with Central Government on or
before the due date as prescribed under Companies Act, 2013.
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 July 21, 2017.
Meeting Details
Eleven meetings of the Committee were held during the year,
as against the minimum requirement of four meetings. The
meetings were held on April 21, 2017; April 24, 2017;
May 10, 2017; July 19, 2017; July 20, 2017; October 11,
2017; October 13, 2017; December 7, 2017; January 17,
2018; January 19, 2018 and March 23, 2018. The details of
attendance are given in this Report.
Human Resources, Nomination and
Remuneration Committee
The Committee’s composition and terms of reference are in
compliance with the 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. The
composition of Committee is given in this Report.
positive attributes and independence of a Director,
and recommend to the Board a policy, relating to the
remuneration of the Directors, Key Managerial Personnel and
other Employees.
• Formulation of the criteria for evaluation of performance of
Independent Directors and the Board.
• Devising a policy on Board Diversity.
• Identifying 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.
• Consider extension or continuation of the term of
appointment of the independent directors on the basis of the
report of performance evaluation of Independent Directors.
• Specifying the manner for effective evaluation of
performance of Board, its Committees and Individual
Directors and review its implementation and compliance.
• Review human resource policies and overall human resources
of the Company.
• 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.
• Annual performance evaluation of the Committee.
• Review the information on recruitment and remuneration
of senior officers just below the level of board of directors,
including appointment or removal of Chief Financial Officer
and the Company Secretary.
• Review significant labour problems and their proposed
solutions. Any significant development in Human Resources
/ Industrial Relations front like signing of wage agreement,
implementation of Voluntary Retirement Scheme etc.
• To carry out any other function as is mandated by the
Board from time to time and / or enforced by any statutory
notification, amendment or modified as may be applicable.
Meeting Details
Four meetings of the Committee were held during the year.
The meetings were held on April 20, 2017; July 26, 2017;
December 7, 2017 and January 17, 2018. The details of
attendance are given in this Report.
The details relating to remuneration of Directors, as required
under Regulation 34 read with Schedule V of the Listing
Integrated Annual Report 2017–18Corporate Governance Report 208
Regulations, have been given under a separate section, viz.
‘Directors’ Remuneration’ in this Report.
Stakeholders’ Relationship Committee
The Committee’s composition and terms of reference are
in compliance with the provisions of the Companies Act,
2013 and Regulation 20 of the Listing Regulations. The
composition of Committee is given in this Report.
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.
Terms of Reference of the Committee inter alia include the
following:
• Oversee and review all matters connected with transfer of
Company’s securities.
• Approve issue of duplicate shares / debentures certificates.
• Consider, resolve and monitor redressal of investors’
/ shareholders’ / security holders’ grievances related
to transfer of securities, non-receipt of annual reports,
non-receipt of declared dividend, issue / new duplicate
certificates, general meetings and so on.
• Oversee the performance of the Company’s Registrars and
Transfer Agents.
• Monitor implementation and compliance with the Company’s
Code of Conduct for Prohibition of Insider Trading.
• Annual performance evaluation of the Committee.
• To carry out any other function as is mandated by the
Board from time to time and / or enforced by any statutory
notification, amendment or modification as may
be applicable.
Meeting Details
Five meetings of the Committee were held during the year.
The meetings were held on April 29, 2017; July 26, 2017;
September 13, 2017; October 13, 2017 and January 19, 2018.
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
131
133
1
191
456
As on March 31, 2018, no complaints were outstanding.
The response time for attending to investors’
correspondence during financial year 2017-18 is as under:
Particulars
Total number of correspondence
received during 2017-18
Replied within 1 to 4 days of receipt
Replied within 5 to 7 days of receipt
Number
2,37,389
2,36,847
542
%
100.00
99.77
0.23
Corporate Social Responsibility and
Governance Committee
The Committee’s primary 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 the 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.
The composition of Committee is given in this Report.
Terms of Reference of the Committee inter alia include the
following:
• Formulate and recommend to the Board, a Corporate Social
Responsibility (CSR) Policy indicating the activities to be
undertaken by the Company as specified in Schedule VII of
the Companies Act, 2013.
• Recommend the amount of expenditure to be incurred on
the CSR activities.
• Approve Corporate Sustainability Reports and oversee the
implementation of sustainability activities.
• Monitor Company’s compliance with the 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.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 209
• Oversee the implementation of polices 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.
• Monitor CSR Policy of the Company from time to time.
• Monitor the CSR activities undertaken by the Company.
• Ensure compliance with the corporate governance norms
prescribed under the Listing Regulations, the Companies
Act, 2013 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.
• Observe practices of Corporate Governance at all levels and
to suggest remedial measures wherever necessary.
• Review and assess the adequacy of the Company’s
Corporate Governance Manual, Code of Conduct for
Directors and Senior Management, the Code of Ethics and
other internal policies and guidelines and monitor that the
principles described therein are being incorporated into the
Company’s culture and business practices.
Risk Management Committee
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 the provisions of Regulation 21 of the Listing
Regulations. The composition of Committee is given in
this Report.
Terms of Reference of the Committee inter alia include the
following:
• Framing of Risk Management Plan and Policy.
• Overseeing implementation / 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.
• Review of development and implementation of a risk
management policy including identification therein of
element of risk.
• Formulate / approve codes and / or policies for
• Annual performance evaluation of the Committee.
better governance.
• 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 disciplines participation.
• Annual performance evaluation of the Committee.
• To carry out any other function as is mandated by the
Board from time to time and / or enforced by any statutory
notification, amendment or modification as may
be applicable.
Meeting Details
Four meetings of the Committee were held during the year.
The meetings were held on April 24, 2017; July 20, 2017;
October 11, 2017 and January 17, 2018.The details of
attendance are given in this Report.
• To carry out any other function as is mandated by the
Board from time to time and / or enforced by any statutory
notification, amendment or modification as may
be applicable.
Meeting Details
Five meetings of the Committee were held during the year.
The meetings were held on April 21, 2017; August 1, 2017;
October 11, 2017; December 7, 2017 and March 1, 2018. The
details of attendance are given in this Report.
Health, Safety and Environment Committee
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 the applicable pollution
and environmental laws across all locations. The Committee
fulfils its responsibilities by reviewing with the management,
health, safety, environmental and social impacts of the
Company’s various projects and operations.
The composition of Committee is given in this Report.
Integrated Annual Report 2017–18Corporate Governance Report 210
Terms of Reference of the 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.
• Borrow money by way of loan and / or issue and allot bonds
/ notes denominated in one or more foreign currencies
in international markets for the purpose of refinancing
the existing debt, capital expenditure, general corporate
purposes, including working capital requirements and
possible strategic investments within limits approved
by the Board.
• Provide corporate guarantee / performance guarantee within
the limits approved by the Board.
• Approve opening and operation of Investment Management
Accounts with foreign banks and appoint them as agents,
establishment of representative / sales offices in or
outside India.
• Other transactions or financial issues that the Board may
desire to have them reviewed by the Finance Committee.
(a) Forex derivative transactions
(b) OTC trades
(c) Note outstanding borrowings, inter-corporate
• Reviewing regularly and making recommendations about
investments, loans and guarantees
changes to the charter of the Committee.
(d) Note status report and hedging activities on
• Annual performance evaluation of the Committee.
• Reviewing fatal or serious accidents, dangerous occurrences,
any material effluent or pollution problems.
• To carry out any other function as is mandated by the
Board from time to time and / or enforced by any statutory
notification, amendment or modification as may
be applicable.
Meeting Details
Four meetings of the Committee were held during the
year. The meetings were held on April 24, 2017; July 26,
2017; October 13, 2017 and January 19, 2018. The details of
attendance are given in this Report
Finance Committee
The composition of Committee is given in this Report.
Terms of Reference of the 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.
commodity and forex products
• 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.
Meeting Details
Nineteen meetings of the Finance Committee were held
during the year. The meetings were held on April 12, 2017;
April 24, 2017; July 20, 2017; August 31, 2017 (2 meetings);
September 1, 2017 (2 meetings); September 4, 2017
(2 meetings); October 6, 2017; October 13, 2017; November
8, 2017 (2 meetings), November 14, 2017 (2 meetings);
November 17, 2017; November 22, 2017 (2 meetings) and
January 19, 2018. 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 IVB’ 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.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
211
Remuneration of the Managing Director and Whole-time Directors during 2017-18
Name of the Director
Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
Salary and
allowances
4.49
5.27
5.26
8.71*
3.11*
Perquisites
0.27
0.03
0.04
0.00
0.23
* includes performance linked incentives for the FY 2016-17 paid in FY 2017-18.
Retiral
benefits
0.71
0.29
0.29
0.28
0.13
Commission
payable
9.53
14.40
14.40
-
-
(` in crore)
Total
Stock Options
15.00
19.99
19.99
8.99
3.47
-
-
-
-
-
Compensation of Shri Mukesh D. Ambani, Chairman and
Managing Director, has been set at ` 15 crore, 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 2017-18:
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,
Shri Adil Zainulbhai and Dr. Shumeet Banerji, the Company’s
Independent Directors have been appointed as Independent
Directors on the Board of Reliance Jio Infocomm Limited, a
material subsidiary of the Company whose non-convertible
debt securities are listed on Stock Exchanges.
Prof. Dipak C. Jain and Shri Adil Zainulbhai have also been
appointed on the Board of Reliance Retail Ventures Limited
an unlisted subsidiary of the Company.
The Company monitors performance of subsidiary
companies, inter alia, by the following means:
• Financial statements, in particular investments made
by subsidiary companies, are reviewed quarterly by the
Company’s Audit Committee.
(` in crore)
• Minutes of Board meetings of subsidiary companies are
Commission
Total
placed before the Company’s Board regularly.
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
Shumeet Banerji**
Total
Sitting
Fee
0.09
0.33
0.08
0.16
0.09
0.30
0.29
0.06
0.22
0.09
1.71
* ceased to be a director w.e.f. July 21, 2017
** appointed as a director w.e.f. July 21, 2017
1.50
1.50
0.46
1.50
1.50
1.50
1.50
1.50
1.50
1.04
13.50
1.59
1.83
0.54
1.66
1.59
1.80
1.79
1.56
1.72
1.13
15.21
During the year, 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
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
• A statement containing all significant transactions and
arrangements entered into by subsidiary companies is
placed before the Company’s Board.
• Presentations are made by the senior management of
major subsidiaries on business performance to the Board of
Directors of the Company.
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/DownloadFiles/IRStatutory/Material-
Subsidiaries.pdf
General Body Meetings
Annual General Meetings
During the preceding three years, the Company’s Annual
General Meetings were held at Birla Matushri Sabhagar, 19,
Sir Vithaldas Thackersey Marg, Near Bombay Hospital &
Medical Research Centre, New Marine Lines,
Mumbai 400 020.
Integrated Annual Report 2017–18Corporate Governance Report 212
The date and time of Annual General Meetings held during last three years, and the special resolution(s) passed thereat, are
as follows:
Year
2016-17
Date
July 21, 2017
Time
11:00 a.m.
Special Resolution Passed
i. Re-appoint Shri Pawan Kumar Kapil as a Whole-time
Director
ii. Re-appoint Shri Yogendra P. Trivedi as an Independent
Director
iii. Re-appoint Prof. Ashok Misra as an Independent Director
iv. Re-appoint Shri Mansingh L. Bhakta as an Independent
Director
v. Re-appoint Prof. Dipak C. Jain as an Independent Director
vi. Re-appoint Dr. Raghunath A. Mashelkar as an Independent
Director
vii. Alter Articles of Association of the Company
viii. Offer or invitation to subscribe to Redeemable
Non – Convertible Debentures on private placement
2015-16
September 01, 2016
11:00 a.m.
i. Offer or invitation for subscription of Redeemable
2014-15
June 12, 2015
11:00 a.m.
Non – Convertible Debentures on private placement
(enabling resolution – not implemented)
i. Continuation of employment of Shri Pawan Kumar Kapil as a
Whole-time Director designated as Executive Director
ii. Offer or invitation for subscription of Non – Convertible
Debentures on private placement (enabling resolution – not
implemented)
Resolution(s) passed through Postal Ballot:
During the year, members of the Company have approved the
resolutions, stated in the below table by requisite majority, by
means of Postal Ballot, including Electronic Voting (e-voting).
The Postal Ballot Notice dated July 28, 2017 along with the
Postal Ballot Form was sent in electronic form to the members
whose e-mail addresses were registered with the Company
/ respective Depository Participants. In case of physical
shareholding, copies of the Postal Ballot Notice along with
Postal Ballot Form was sent in physical, by permitted mode
along with self-addressed postage pre-paid Business
Reply Envelope.
The Company had published a notice in the newspaper on
August 4, 2017 in Times of India and Maharashtra Times in
compliance with the provisions of the Companies Act, 2013
and Secretarial Standard - 2. The voting period commenced
from Thursday, August 3, 2017 at 9:00 a.m. (IST) and ended on
Friday, September 1, 2017 at 5:00 p.m. (IST). The voting rights
of members were reckoned on the paid-up value of shares
registered in the name of member / beneficial owner (in case
of electronic shareholding) as on Thursday, July 27, 2017.
The Board had appointed Shri Mehul Modi, a Practising
Chartered Accountant, Partner, Deloitte Haskins & Sells
LLP, Chartered Accountants, failing him Shri Hemal Mehta, a
Practising Chartered Accountant, Partner, Deloitte Haskins &
Sells LLP, Chartered Accountants, as Scrutiniser to conduct
the postal ballot process in a fair and transparent manner and
had engaged the services of Karvy Computershare Private
Limited as the agency for the purpose of providing e-voting
facility.
Shri Mehul Modi, Scrutiniser, had submitted his report on
the Postal Ballot to the Chairman on September 2, 2017. The
resolutions were passed on Friday, September 1, 2017.
The details of the voting pattern are given below:
Resolutions passed through Postal Ballot
Increase in Authorised Share Capital and consequent alteration to the Capital
Clause of the Memorandum of Association
Issue of Bonus Shares
Reliance Industries Limited Employees’ Stock Option Scheme 2017’ (‘ESOS
2017’) for employees of the Company
‘Reliance Industries Limited Employees’ Stock Option Scheme 2017’ (‘ESOS
2017’) for employees of the subsidiary companies of the Company
Votes in favour of the
resolution (%)
91.66
Votes against the
resolution (%)
8.34
97.71
85.76
85.76
2.29
14.24
14.24
There is no immediate proposal for passing any resolution through Postal Ballot.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 213
Disclosure on Materially Significant Related Party
Transactions 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
its ordinary course of business and on an arm’s length basis.
They were substantially on similar terms as in earlier years, as
per the provisions of contract.
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 Note 31 of Standalone Financial
Statements, forming part of the Annual Report.
None of the transactions with any of related parties were in
conflict with the Company’s interest.
The Company’s Policy on Materiality of Related Party
Transactions and on dealing with Related Party Transactions
is put up on the Company’s website and can be accessed at
http://www.ril.com/DownloadFiles/IRStatutory/Policy-on-
Materiality-of-RPT.pdf
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 ` 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. SEBI appointed
new Adjudicating Officer (AO) in place of the earlier AO.
Hearing before AO was held on April 19, 2018 and the
adjudication order is awaited.
(ii) (a) SEBI had 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 the shares of Reliance
Petroleum Limited by the Company in the year 2007,
directing (i) disgorgement of ` 447 crore along with
interest calculated at 12% per annum from November
29, 2007 till date of payment and (ii) prohibiting
the Company 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 March 24, 2017. The Company has filed
an appeal against the said Order before the Hon’ble
Securities Appellate Tribunal (‘SAT’). SAT has stayed
the direction on disgorgement till the next date of
hearing and the prohibition from dealing in equity
derivatives in the Futures and Options segment
expired on March 23, 2018.
(b) SEBI had also issued a Show Cause Notice dated
November 21, 2017 to the Company in the matter
concerning trading in the shares of Reliance
Petroleum Limited by the Company in the year 2007,
asking the Company to show cause as to why inquiry
should not be held against the Company in terms of
SEBI (Procedure for Holding Inquiry and Imposing
Penalties by Adjudicating Officer) Rules, 1995 and
penalty be not imposed under the provisions of the
Securities and Exchange Board of India Act, 1992.
The Company is in the process of filing reply to the
said Show Cause Notice.
(iii) 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 Adjudicating Officer, vide Order
dated February 28, 2018, disposed of the adjudication
proceedings initiated against the Company without
imposition of any penalty.
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.
Integrated Annual Report 2017–18Corporate Governance Report
214
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 . Simultaneously, they are also put on the
Company’s website and can be accessed at http://www.ril.
com/InvestorRelations/FinancialReporting.aspx
News releases, presentations, among others: Official news
releases and official media releases are sent to Stock Exchanges
and are put on the Company’s website (www.ril.com).
Presentations to institutional investors / analysts: Detailed
presentations are made to institutional investors and
financial analysts on the Company’s quarterly, half - yearly
as well as annual financial results. These presentations and
schedule of analyst or institutional investors meet are also
put on the Company’s website and can be accessed at http://
www.ril.com/InvestorRelations/FinancialReporting.aspx 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.
Annual Report: The Annual Report containing, inter alia,
Audited Financial Statements, Audited Consolidated
Financial Statements, Board’s 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. The Company’s Annual Report is also available in
downloadable form on the Company’s website and can
be accessed at http://www.ril.com/InvestorRelations/
FinancialReporting.aspx
Chairman’s Communiqué: The printed copy of the
Chairman’s speech is distributed to shareholders at
Annual General Meeting. The document is also put on the
Company’s website and can be accessed at http://www.ril.
com/InvestorRelations/Chairman-Communication.aspx 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 (“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
2016-17. 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)
Thursday, July 5, 2018 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
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 215
Financial Year
April 1 to March 31
Dividend Payment Date
Credit / dispatch of dividend payment: Between July 5, 2018
and July 12, 2018.
Financial Calendar (Tentative)
Results for the Quarter ending
June 30, 2018 – Fourth week of July, 2018
September 30, 2018 – Third week of October, 2018
December 31, 2018 – Third week of January, 2019
March 31, 2019 – Third week of April, 2019
Annual General Meeting – June / July, 2019
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
PPD Series
A to F
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
Listed on Wholesale Debt Market
Segment of BSE and NSE
Listing on Stock Exchanges
Equity Shares
BSE Limited (BSE)
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001
Scrip Code - 500325
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.
National Stock Exchange of India Limited (NSE)
'Exchange Plaza’, C-1, Block G, Bandra Kurla Complex,
Bandra (East), Mumbai 400 051
Trading Symbol – RELIANCE
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.
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.
Debenture Trustee
Axis Trustee Services Limited
Axis House, 2nd Floor, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai 400 025
E-mail: debenturetrustee@axistrustee.com;
complaints@axistrustee.com
Phone: 022-2425 5215/5216
Payment of Listing Fees
Annual listing fee for the financial year 2018-19 has been
paid by the Company to BSE and is being paid to NSE. Annual
maintenance and listing agency fee for the calendar year
2018 has been paid by the Company to the Luxembourg
Stock Exchange.
Payment of Depository Fees
Annual Custody / Issuer fee for the year 2018-19 has been
paid by the Company to Central Depository Services Limited
(CDSL) and will be paid to National Securities Depository
Limited (NSDL) on receipt of the invoice.
Integrated Annual Report 2017–18Corporate Governance Report 216
Stock Market Price Data
Month
National Stock Exchange of India Limited (NSE)
April 2017
May 2017
June 2017
July 2017
August 2017
September 2017*
October 2017
November 2017
December 2017
January 2018
February 2018
March 2018
High Price
(`)
1,467.75
1,402.00
1,445.40
1,631.50
1,664.90
1,652.50
957.80
959.50
938.90
990.95
972.60
959.90
Low Price
(`)
1,337.05
1,295.10
1,309.00
1,371.00
1,530.00
779.10
785.35
873.00
862.65
906.40
871.00
880.00
Volume
(No.)
10,34,10,571
7,33,96,219
8,46,44,001
11,09,92,874
6,42,97,967
14,92,13,053
14,97,79,137
13,08,48,079
12,08,75,177
13,21,23,409
14,49,36,545
13,28,06,701
* 1:1 Bonus shares allotted on September 13, 2017
[Source: This information is compiled from the data available on the websites of BSE and NSE]
High Price
(`)
1,465.00
1,402.00
1,444.00
1,631.10
1,665.00
1,652.40
958.20
959.00
937.00
990.00
971.25
958.80
BSE Limited (BSE)
Low Price
(`)
1,332.00
1,295.00
1,308.60
1,372.10
1,530.00
780.00
786.25
873.00
861.70
907.25
872.10
881.00
Volume
(No.)
93,03,621
60,36,076
1,07,55,312
96,90,182
51,20,100
1,23,17,360
1,31,74,254
1,00,42,930
1,06,70,844
1,23,52,218
71,80,248
67,93,282
Share Price Performance in comparison to Broad Based Indices – BSE Sensex and NSE Nifty as on
March 31, 2018
FY 2017-18
2 years
3 years
5 years
BSE (% Change)
NSE (% Change)
RIL
33.84
68.92
114.09
128.20
Sensex
11.30
30.10
17.92
75.03
RIL
33.65
68.91
113.73
128.41
Nifty
10.25
30.69
19.11
77.98
Registrars and Transfer Agents
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
e-mail: rilinvestor@karvy.com
Website: www.karvy.com
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 and 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 lodgment 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.
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
SEBI has decided that securities of listed companies can be
transferred only in dematerialised form, from a cut-off date,
to be notified
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 217
Shareholding Pattern as on March 31, 2018
Sr. No.
Category of shareholder
(A)
(1)
(2)
(B)
(1)
(2)
(C)
(1)
(2)
Shareholding of Promoter and Promoter Group
Indian
Foreign
Total Shareholding of Promoter and Promoter Group
Public Shareholding
Institutions
Non-institutions
Total Public Shareholding
Shares held by Custodians and against which Depository
Receipts have been issued
Promoter and Promoter Group
Public
Total (A) + (B) + (C)
Number of
shareholders
Total number of
shares
% of
(A+B+C)
55*
0
55
2,92,62,02,148
0
2,92,62,02,148
1,469
22,64,483
22,65,952
2,21,01,15,972
1,03,10,12,900
3,24,11,28,872
0
1
22,66,008
0
16,73,20,002
6,33,46,51,022
46.19
0.00
46.19
34.89
16.28
51.17
0.00
2.64
100.00
* As per disclosure under Regulation 30(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011,
furnished by the promoters.
Category-wise Shareholding (%)
Promoter
Institutions
Non-Institutions
GDR Holders
2.64
16.28
46.19
34.89
Shareholding of Directors
Name of Director
Mukesh D. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P.M.S.Prasad
Pawan Kumar Kapil
No. of equity shares held as on
March 31, 2018
72,31,692
6,80,000
60,400
4,600
Nil
Nil
Nil
4,000
Nil
67,96,292
33,56,748
32,23,772
6,00,000
61,000
Integrated Annual Report 2017–18Corporate Governance Report 218
Holders
Distribution of Shareholding by size as on
March 31, 2018
Category
(Shares)
Upto 500
501 - 1000
1001 - 5000
5001 - 10000
10001 - 20000
Above 20000
Total
20,04,82,033
8,42,47,680
17,75,99,269
5,35,53,920
3,92,30,413
5,77,95,37,707
6,33,46,51,022
20,44,627
1,18,091
90,153
7,755
2,828
2,554
22,66,008
Shares % of total
Shares
3.16
1.33
2.80
0.85
0.62
91.24
100.00
Build-Up of Equity Share Capital
The statement showing build-up of equity share capital is put
up on the Company’s website and can be accessed at http://
www.ril.com/DownloadFiles/IRStatutory/RIL-Build-up-
ShareCapital-2018.pdf
2007-08
2008-09
2009-10
Corporate Benefits to Investors
Dividend Declared for the last 10 years
Date of Dividend
Financial Year
Declaration
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
July 21, 2017
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Dividend
per Share*(`)
13
13
7
8
8.5
9
9.5
10
10.50
11
*Share of paid-up value of ` 10/- each
Note: The Board has recommended a dividend of ` 6 per share of
` 10/- each, for the financial year 2017-18 on the increased
paid-up share capital consequent to issue of Bonus Shares during
the financial year 2017-18 in the ratio of 1:1.
Bonus Issues of fully Paid-Up Equity Shares
Financial Year
1980-81
1983-84
1997-98
2009-10
2017-18
Ratio
3:5
6:10
1:1
1:1
1:1
Dematerialisation of Shares
%
Mode of Holding
95.80
NSDL
2.70
CDSL
1.50
Physical
100.00
Total
98.50% of Company’s paid-up Equity Share Capital has been
dematerialised up to March 31, 2018 (98.01% up to March 31,
2017). 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 2017-18 is given below:
Particulars
Shares (nos.)
Value (in ` crore)
BSE
4,61,124
51.66
NSE
56,80,178
617.97
Total
61,41,302
669.63
[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, 2018 represent
16,73,20,002 equity shares constituting 2.64% 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 an Overseas Depository and
ICICI Bank Limited is the Domestic Custodian of all the Equity
Shares underlying the GDRs issued by the Company.
Employee Stock Options
Particulars with regard to Employees’ Stock Options are put
up on the Company’s website and can be accessed at http://
www.ril.com/DownloadFiles/IRStatutory/ESOS-2006-
Disclosure.pdf and http://www.ril.com/DownloadFiles/
IRStatutory/ESOS-2017-Disclosure.pdf
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 219
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. Majority of 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
MD&A 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
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
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,
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
Transfer of Unpaid / Unclaimed Amounts and
Shares to Investor Education and Protection Fund
During the year under review, the Company has credited
` 19.19 crore to the Investor Education and Protection Fund
(IEPF) pursuant to the provisions of the Companies Act,
Integrated Annual Report 2017–18Corporate Governance Report 220
2013. The cumulative amount transferred by the Company
to IEPF up to March 31, 2018 is ` 177 crore.
In accordance with the provisions of Companies Act, 2013
the Company has transferred 2,99,52,968 equity shares of
` 10/- each, to the credit of IEPF Authority, on November
28, 2017, in respect of which dividend had not been paid
or claimed by the members for seven consecutive years
or more as on the cut-off date, i.e. October 31, 2017. The
Company has initiated necessary action for transfer of
shares in respect of which dividend has not been paid or
claimed by the members consecutively since 2010-11.
The Company has uploaded on its website the details of
unpaid and unclaimed amounts lying with the Company as
on date of last Annual General Meeting (i.e. July 21, 2017)
and details of shares transferred to IEPF during financial year
2017-18. 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 these details on the website
of the IEPF Authority (www.iepf.gov.in).
The voting rights on the shares transferred to IEPF Authority
shall remain frozen till the rightful owner claims the shares.
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 account 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, 2017
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
Number of bonus shares allotted to Unclaimed Suspense
Account during the year
Number of shares transferred to IEPF Authority during the year
Aggregate Number of shareholders and the outstanding shares
in the Suspense Account lying as on March 31, 2018
Number of
Shareholders
Number of
equity shares
Number of
Shareholders
(phase wise
transfers)
Number of
equity shares
96
0
0
0
0
96
1 308
1,59,091
59,73,988
0
0
1,466
1,80,945
67,216
51,08,378
1,308
0
59,23,577
0
1,27,081
80,31,316
2,616
97,760
87,93,682
The voting rights on the shares in the suspense account shall remain frozen till the rightful owners claim the shares.
Compliance of Corporate Governance requirements specified in Regulation 17 to 27 and Regulation
46(2)(b) to (i) of Listing Regulations
Particulars
Sr.
No.
Regulation
1.
Board of Directors
17
Compliance
Status Yes /
No/N.A.
Yes
Compliance observed
•
•
•
•
•
•
•
•
•
•
Composition
Meetings
Review of compliance reports
Plans for orderly succession for appointments
Code of Conduct
Fees / compensation to non-executive Directors
Minimum information to be placed before the Board
Compliance Certificate
Risk assessment and management
Performance evaluation of Independent Directors
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice Particulars
Sr.
No.
2.
Audit Committee
3.
4.
5.
6.
7.
Nomination and Remuneration
Committee
Stakeholders Relationship
Committee
Risk Management Committee
Vigil Mechanism
Related Party Transactions
Regulation
18
19
20
21
22
23
Compliance
Status Yes /
No/N.A.
Yes
Yes
Yes
Yes
Yes
Yes
8.
Subsidiaries of the Company
24
Yes
9.
Obligations with respect to
Independent Directors
10. Obligations with respect to
employees including Senior
Management, Key Managerial
Personnel, Directors and
Promoters
25
26
Yes
Yes
11. Other Corporate Governance
27
Yes
requirements
12 Website
46(2)(b) to (i)
Yes
221
Compliance observed
•
•
•
•
Composition
Meetings
Powers of the Committee
Role of the Committee and review of information by the
Committee
Composition
Role of the Committee
Composition
Role of the Committee
Composition
Role of the Committee
•
•
•
•
•
•
• Review of Vigil Mechanism for Directors and employees
•
•
Direct 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
• No material Related Party transactions
•
Appointment of Company’s Independent Director on the
Board of material subsidiary
Review of financial statements of subsidiary by the Audit
Committee
Minutes of the Board of Directors of the subsidiaries are
placed at the meeting of the Board of Directors
Significant transactions and arrangements of subsidiary
are placed at the meeting of the Board of Directors
Maximum directorships and tenure
Meetings of Independent Directors
Cessation and appointment 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
No 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
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Integrated Annual Report 2017–18Corporate Governance Report 222
Compliance Certificate of the Auditors
Certificate from the Company’s Auditors, S R B C & Co., LLP and D T S & Associates, 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. In addition to half-yearly
reports, quarterly reports were also sent to the members whose e-mail IDs are registered with the Company / Depository
Participants.
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 Senior Management Personnel,
affirmation that they have complied with the ‘Code of Conduct’ and ‘Our Code’ in respect of the financial year 2017-18.
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 27, 2018
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.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 223
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, 2018 and to the best of our knowledge and belief:
i. these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
ii. these statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
2. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company’s Code of Conduct.
3. We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated
the effectiveness of Company’s internal control systems pertaining to financial reporting. We have not come across any
reportable deficiencies in the design or operation of such internal controls.
4. We have indicated to the Auditors and the Audit Committee that:
i. there are no significant changes in internal control over financial reporting during the year;
ii. there are no significant changes in accounting policies during the year; and
iii. there are no instances of significant fraud of which we have become aware.
Mumbai, April 27, 2018
Chief Financial Officer
Joint Chief Financial Officer
Alok Agarwal
Srikanth Venkatachari
Mukesh D. Ambani
Chairman and Managing Director
Integrated Annual Report 2017–18Corporate Governance Report
224
Independent Auditors’ Certificate on compliance with the conditions of Corporate Governance as per
provisions of Chapter IV of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015
To the Members
Reliance Industries Limited
3rd Floor, Maker Chambers IV, 222, Nariman Point,
Mumbai 400 021, India
1. The Corporate Governance Report prepared by Reliance Industries Limited (“the Company”), contains details 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 Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
(“the Listing Regulations”) (‘applicable criteria’) with respect to Corporate Governance for the year ended March 31,
2018. This certificate is required by the Company for annual submission to the Stock exchange and to be sent to the
shareholders of the Company.
Management’s Responsibility
2. The preparation of the Corporate Governance Report is the responsibility of the Management of the Company including
the preparation and maintenance of all relevant supporting records and documents. This responsibility also includes the
design, implementation and maintenance of internal control relevant to the preparation and presentation of the Corporate
Governance Report.
3. The Management along with the Board of Directors are also responsible for ensuring that the Company complies with the
conditions of Corporate Governance as stipulated in the Listing Regulations, issued by the Securities and Exchange Board
of India.
Auditor’s Responsibility
4. Our responsibility is to provide a reasonable assurance that the Company has complied with the conditions of Corporate
Governance, as stipulated in the Listing Regulations.
5. We conducted our examination of the Corporate Governance Report in accordance with the Guidance Note on Reports
or Certificates for Special Purposes and the Guidance Note on Certification of Corporate Governance, both issued by the
Institute of Chartered Accountants of India (“ICAI”). The Guidance Note on Reports or Certificates for Special Purposes
requires that we comply with the ethical requirements of the Code of Ethics issued by ICAI.
6. 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.
7. The procedures selected depend on the auditors’ judgement, including the assessment of the risks associated in
compliance of the Corporate Governance Report with the applicable criteria. The procedures includes, but not limited to,
verification of secretarial records and financial information of the Company and obtained necessary representations and
declarations from directors including independent directors of the Company.
8. The procedures also include examining evidence supporting the particulars in the Corporate Governance Report on a test
basis. Further, our scope of work under this report did not involve us performing audit tests for the purposes of expressing
an opinion on the fairness or accuracy of any of the financial information or the financial statements of the Company taken
as a whole.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 225
Opinion
9. Based on the procedures performed by us as referred in paragraph 7 and 8 above and according to the information
and explanations given to us, we are of the opinion that the Company has complied with the conditions of Corporate
Governance as stipulated in the Listing Regulations, as applicable for the year ended March 31, 2018, referred to in
paragraph 1 above.
Other matters and Restriction on Use
10. This Certificate 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.
11. This Certificate is addressed to and provided to the members of the Company solely for the purpose of enabling it to
comply with its obligations under the Listing Regulations and should not be used by any other person or for any other
purpose. Accordingly, we do not accept or assume any liability or any duty of care or for any other purpose or to any other
party to whom it is shown or into whose hands it may come without our prior consent in writing. We have no responsibility
to update this Certificate for events and circumstances occurring after the date of this Certificate.
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & Co. LLP
Chartered Accountants
(Registration No.324982E/E300003)
T. P. Ostwal
Partner
Membership No. 030848
Place: Mumbai
Date: April 27, 2018
Vikas Kumar Pansari
Partner
Membership No. 093649
Place: Mumbai
Date: April 27, 2018
Integrated Annual Report 2017–18Corporate Governance Report
226
Board’s Report
Dear Members,
The Board of Directors are pleased to present the Company’s Forty-first Annual Report (Post-IPO) and the Company’s
audited financial statements (standalone and consolidated) for the financial year ended March 31, 2018.
Financial Results
The Company’s financial performance for the year ended March 31, 2018 is summarised below:
STANDALONE
CONSOLIDATED
2017-18
2016-17
2017-18
2016-17
Profit Before Tax
Less: Current Tax
Deferred Tax
Profit for the year
Add: Other Comprehensive Income
Total Comprehensive Income for the year
Less: Total Comprehensive Income attributable to Non
Controlling Interest
Total Comprehensive Income attributable to
owners of the Company
Add: Balance in Profit and Loss Account (Adjusted)
Add: Transferred from Capital Reserve Account
Add: Transferred from Revaluation Reserve
Add: Transferred from Share in Reserve of Associates
Add: Transferred from Share Based Payments Reserve
Less: On account of Amalgamation /
Divestment of Stake
Less: Securities Premium on Redemption of
Non-Cumulative Optionally Convertible Preference
Shares
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)
₹ crore
45,725
8,953
3,160
33,612
(3,503)
30,109
US$
million*
₹ crore
US$
million*
₹ crore
US$
million*
₹ crore
7,016 40,777
8,333
1,374
1,019
485
5,157 31,425
(537)
2,192
4,620 33,617
-
157
6,288 49,426
1,285 10,098
3,248
4,846 36,080
338 (1,635)
5,184 34,445
9
-
7,584 40,034
8,880
1,549
1,321
498
5,537 29,833
(251)
1,827
5,286 31,660
(64)
1
US$
million*
6,173
1,369
204
4,600
282
4,882
(10)
30,109
4,620 33,617
5,184 34,436
5,285 31,724
4,892
34,506
5,999 25,679
-
4,638 14,467
2,413
-
7,851
-
1,393
-
4
1
327
10
4
-
-
(283)
(144)
50
2
1
(43)
(22)
(252)
(39)
64,619
10,620 59,296
9,822 48,817
7,686 39,323
6,246
25,000
4,134
3,255
661
31,569
-
3,836 24,790
-
-
-
-
5,550 34,506
634
499
101
-
221
3,823 25,000
2
4,145
3,255
661
5,999 15,533
-
-
-
-
34
66
3,836 24,790
-
-
-
-
2,580 14,467
0
636
499
101
10
3,823
-
-
-
-
2,413
* 1 US$ = ₹ 65.175 Exchange Rate as on March 31, 2018 (1 US$ = ₹ 64.85 as on March 31, 2017)
^ Pertaining to dividend for the financial year 2016-17
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
227
Results of Operations and the State of Company’s
Affairs
to ₹ 4,281 crore (inclusive of dividend distribution tax of
₹ 728 crore). The dividend payment is subject to approval of
members at the ensuing Annual General Meeting.
The Highlights of the Company’s performance
(Standalone) for the year ended March 31, 2018 are as
under:
•
Value of sales and services increased by 19.0 % to
₹ 3,15,357 crore (US$ 48.4 billion).
•
•
•
•
•
•
Exports increased by 19.2 % to ₹ 1,76,117 crore
(US$ 27.0 billion).
PBDIT increased by 15.4 % to ₹ 59,961 crore
(US$ 9.2 billion).
Profit Before Tax increased by 12.1 % to ₹ 45,725 crore
(US$ 7.0 billion).
Cash Profit increased by 13.3 % to ₹ 46,352 crore
(US$ 7.1 billion).
Net Profit increased by 7.0 % to ₹ 33,612 crore
(US$ 5.2 billion).
Gross Refining Margin stood at US$ 11.6 / bbl for the year
ended March 31, 2018.
Financial Performance Review and Analysis (Consolidated)
The Company achieved a consolidated turnover of ₹ 4,30,731
crore (US$ 66.1 billion) for the year ended March 31, 2018, an
increase of 30.5 %, as compared to ₹ 3,30,180 crore in the
previous year. Increase in revenue is primarily on account of
higher volumes with start-up of petrochemicals projects and
uptrend in prices of products in refining and petrochemical
businesses. Turnover was also boosted by robust growth in
retail business which recorded a 104.9 % surge in turnover to
₹ 69,198 crore. Brent crude oil price averaged US$ 57.5 /bbl
in FY2017-18 as compared to US$ 48.6/bbl in the previous
year. Exports (including deemed export) from India were
marginally higher at ₹ 1,76,117 crore (US$ 27.0 billion) as
against ₹ 1,47,755 crore in the previous year.
Dividend
The Board of Directors has recommended a dividend of
₹ 6/- per equity share of ₹ 10/- each on the increased paid-up
share capital post issue of bonus shares during the financial
year 2017-18 in the ratio of 1:1 (last year ₹ 11/- per equity
share) for the financial year ended March 31, 2018 amounting
The dividend payout is in accordance with the Company’s
Dividend Distribution Policy. The Dividend Distribution
Policy of the Company is annexed herewith marked as
Annexure I to this Report.
Bonus Shares
During the year under review, the Company has issued
and allotted 308,03,34,238 bonus shares to the equity
shareholders in the ratio of 1:1 (i.e. one fully paid equity share
of ` 10/- each for one fully paid equity share).
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
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 the Company and its major subsidiaries
consolidated with the Company are as below:
Refining & Marketing Business
FY 2017-18 refining EBIT increased by 3.2% y-o-y to a record
of ` 25,869 crore, supported by strong product demand,
lower freight rates, effective crude sourcing and robust risk
management. With a countrywide operational network of
1,313 fuel outlets, the Company covers the key highways in
the country. Customer count enrolled in Reliance’s industry
leading fleet program, Trans-Connect, grew by 31% during
FY 2017-18. Supported by the network presence and the
growing fleet customer count, Company’s outlets registered
an outstanding Pump throughput of double the industry
average during the year.
Petrochemicals Business
FY 2017-18 revenue growth was primarily due to higher
volumes from new Paraxylene, ROGC and its downstream
units (PE and MEG), with the segment achieving its
Integrated Annual Report 2017–18Board’s Report 228
highest ever production level of 30.8 MMT, up 24% y-o-y.
Petrochemicals segment EBIT increased sharply by 63.0%
to its highest ever level of ₹ 21,179 crore ($ 3.2 billion).
Earnings were supported by favorable product deltas across
integrated polyester chain, PP, PVC along with the growth in
volumes. EBIT margin was higher by nearly 300bps to 16.9%,
reflecting Company’s strengthened cost positions across
product chains and unmatched feedstock flexibility.
Oil and Gas (Exploration & Production) Business
FY 2017-18, revenues increased by 0.3% to `5,204 crore. This
marginal change was on account of better price realisations
and ramp up of production in CBM which were partly offset by
decline in production in KG D6 and Shale Gas. Consequently,
upstream operations registered negative EBIT
of `(1,536) crore.
During the year Reliance divested its holdings in the
Marcellus shale JV which was operated by Carrizo Oil & Gas.
Reliance continues to focus on value maximization in the
remaining two JVs with focus on improvement in well design
and execution efficiency.
The Company commenced commercial production from its
Coal Bed Methane (CBM) block SP (West)–CBM–2001/1 in
March 2017. More than 200 wells were put on production with
production ramp up crossing the 1 MMSCMD level during
the year.
crore achieved last year. During the year, Reliance Retail
added 221 stores and 3,736 Jio Points.
Reliance Retail operated 7,573 retail stores in over 4,400
cities covering an area of 17.7 million sq. ft. as on March 31,
2018. Reliance Retail operated 495 petro retail outlets as on
March 31, 2018.
Digital Services
Despite competitive pressures Digital Services business
recorded revenues of ₹23,916 crore, with year-end
subscribers’ base at 186.6 million and Segment EBIT was at
₹3,174 crore for the year, with EBIT margin of 13.3%. This
is strong financial performance within very first year of
commercial operations demonstrating strong fundamental
and operating leverage of the business.
Media and Entertainment
Network18 subsidiary viz. TV18 took operational control
of and raised its stake to 51% in entertainment JV viz.
Viacom18. TV18 can drive value-addition and synergies
across the multi-platform group, comprising broadcast,
digital, filmed and experiential entertainment and media
businesses.
Network18 reported revenues of ₹1,839 crore (+23% y-o-y,
despite tepid industry environment), and EBIT of ₹(25) crore
on a consolidated basis.
Retail Business
Reliance Retail achieved a turnover of ₹69,198 crore in FY
2017-18, more than doubling from the turnover of ₹33,765
crore achieved last year. The business delivered an EBIT of
₹2,064 crore for FY 2017-18, more than doubling from ₹784
The sharp revenue escalation is led by the impact of
subsidiary TV18 acquiring control of entertainment JV
Viacom18, partly offset by HomeShop18 ceasing to be a
subsidiary due to its share-swap acquisition of ShopCJ
during the last quarter of the fiscal.
Credit Rating
The Company’s financial discipline and prudence is reflected in the strong credit ratings ascribed by rating agencies as given
below:
Instrument
Remarks
Outlook
Rating
International Debt
International Debt
Long Term Debt
Long Term Debt
BBB+
Baa2
CRISIL AAA
IND AAA
Stable
Stable
Stable
Stable
Two notches above India’s sovereign rating
At par with India’s sovereign rating
Highest rating awarded by CRISIL
Highest rating awarded by India Ratings
Rating
Agency
S&P
Moody’s
CRISIL
India Ratings
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 229
Consolidated Financial Statement
In accordance with the provisions of the Companies Act,
2013 (“the Act”) and Ind AS 110 – Consolidated Financial
Statement 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,
as per Section 129(3) of the Act, 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 is put on the Company’s
website and may be accessed at: http://www.ril.com/
InvestorRelations/FinancialReporting.aspx The financial
statements of each of the subsidiaries is put on the
Company’s website and may be accessed at: http://www.ril.
com/InvestorRelations/Downloads.aspx. These documents
will also be available for inspection on all working days, during
business hours, at the Registered Office of the Company.
The Company has formulated a Policy for determining
Material Subsidiaries. The Policy may be accessed at:
http://www.ril.com/DownloadFiles/IRStatutory/Material-
Subsidiaries.pdf
b) 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, 2018 and of the profit of the Company for the
year ended on that date;
c) the Directors have taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and
detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a
going concern basis;
e) the Directors have laid down internal financial controls
to be followed by the Company and that such internal
financial controls are adequate and are operating
effectively; and
f) the Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws and
that such systems are adequate and operating effectively.
Corporate Governance
The Company is committed to maintain the highest
standards of Corporate Governance and adhere to the
Corporate Governance requirements set out by the
Securities and Exchange Board of India (SEBI). The Company
has also implemented several best governance practices.
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.
Secretarial Standards
Business Responsibility Report
The Directors state that applicable Secretarial Standards,
i.e. SS-1 and SS-2, relating to ‘Meetings of the Board of
Directors’ and ‘General Meetings’, respectively, have been
duly followed by the Company.
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 a part of the Annual Report.
Directors’ Responsibility Statement
Contracts or Arrangements with Related Parties
Your Directors state that:
a) in the preparation of the annual accounts for the year
ended March 31, 2018, 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;
All contracts / arrangements / transactions entered by the
Company during the financial year with related parties were
in its ordinary course of business and on an 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
Integrated Annual Report 2017–18Board’s Report 230
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:
http://www.ril.com/DownloadFiles/IRStatutory/Policy-on-
Materiality-of-RPT.pdf
• 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.
There were no materially significant related party
transactions which could have potential conflict with interest
of the Company at large.
• Arts, Culture and Heritage: Protection and promotion of
India’s art, culture and heritage.
• Disaster Response: Managing and responding to disaster.
Members may refer to Note 31 to the standalone financial
statement which sets out related party disclosures pursuant
to Ind AS.
The Company also undertakes other need based initiatives in
compliance with Schedule VII to the Act.
Corporate Social Responsibility (CSR)
During the year under review, the Company has won the
Golden Peacock Award 2017 for the success of its Corporate
Social Responsibility initiatives and in particular for the
transformative work done by Reliance Foundation (RF),
the CSR arm of the Company. Under the able leadership of
its Founder and Chairperson, Smt. Nita M. Ambani, RF has
touched the lives of 20 million people across India covering
more than 13,500 villages and 100 urban locations. The
Company was recognized by the Awards Jury under the
Chairmanship of Justice (Dr.) Arijit Pasayat, former Judge,
Supreme Court of India. Golden Peacock Award, is instituted
by the Institute of Directors (IOD), India in 1991, and are
regarded as a benchmark of Corporate Excellence worldwide.
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.
The CSR Policy may be accessed on the Company’s website
at: http://www.ril.com/DownloadFiles/IRStatutory/CSR-
Policy.pdf
The key philosophy of 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.
During the year, the Company spent ₹ 745 crore (around
2.12% 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 to this Report.
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 Strategic and Commercial, Safety
and Operations, Compliance and Control and Financial
risks have been identified and assessed and there is an
adequate risk management infrastructure in place, capable
of addressing those risks.
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 Managements Discussion and Analysis section,
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.
• Environment: Environmental sustainability, ecological
balance, conservation of natural resources and promoting
bio-diversity.
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
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 231
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, Shri P.M.S. Prasad and
Shri Nikhil. R. Meswani, Directors of the Company, retire
by rotation at the ensuing Annual General Meeting. The
Board of Directors on the recommendation of the Human
Resources, Nomination and Remuneration Committee has
recommended their re-appointment.
Dr. D. V. Kapur has ceased to be a Director of the Company
w.e.f. July 21, 2017. 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
The Board of Directors on recommendation of the Human
Resources, Nomination and Remuneration Committee has
re-appointed Shri Mukesh D. Ambani as Managing Director
of the Company for a period of 5 (five) years with effect from
April 19, 2019, subject to approval of shareholders, as his
current term of office is upto April 18, 2019.
The term of office of Shri Adil Zainulbhai, as an
Independent Director, will expire on March 31, 2019. The
Board of Directors, on recommendation of the Human
Resources, Nomination and Remuneration Committee has
recommended re-appointment of Shri Adil Zainulbhai, as an
Independent Director of the Company for a second term of
5 (five) consecutive years on the expiry of his current term of
office.
The shareholders of the Company at its Annual General
Meeting held on July 21, 2017 have approved 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 on the Board of the Company by
passing special resolution and appointed Dr. Shumeet Banerji
as an Independent Director of the Company, for a term of 5
(five) consecutive years.
The Company has received declarations from all the
Independent Directors of the Company confirming that they
meet the criteria of independence prescribed under the Act
and the Listing Regulations.
The following policies of the Company are attached herewith
marked as Annexure IV A and Annexure IV B:
a) Policy for selection of Directors and determining
Directors’ independence; and
b) 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 include
criteria for performance evaluation of 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.
The Board carried out an annual performance evaluation
of the Board, Committees, Individual Directors and the
Chairperson. The Chairman of the respective 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 Committees.
The report on performance evaluation of the Individual
Directors was reviewed by the Chairman of the Board and
feedback was given to Directors.
Employees’ Stock Option Schemes
The Company’s Employees Stock Option Scheme viz.
ESOS-2006 has been in place since year 2006-07 and the
Company has made grants under ESOS-2006 to the eligible
employees of the Company and its subsidiaries. The Human
Resources, Nomination and Remuneration Committee of the
Board of Directors of the Company, inter alia, administers and
monitors the Employees’ Stock Option Plan of the Company.
The Company, during the year obtained approval of the
members for a new scheme viz. ESOS-2017 and pursuant to
the said approval it was decided to withdraw ESOS-2006 and
cancel balance of options not granted. Accordingly, ESOS-
2006 stands cancelled. However, existing options granted
and which are in force will continue to be governed by ESOS-
2006. The Company did not make any grant under ESOS-
2017 during the FY 2017-18. Other than the above, there has
not been any material change in the Employee Stock Option
Schemes during the current financial year.
Integrated Annual Report 2017–18Board’s Report 232
The Schemes are in line with the SEBI (Share Based Employee
Benefits) Regulations, 2014 (“SBEB Regulations”). The
Company has received a certificate from the Auditors of the
Company that the Schemes are implemented in accordance
with the SBEB Regulations and the resolutions passed by the
members. The certificate would be available at the Annual
General Meeting for inspection by members. The details as
required to be disclosed under the SBEB Regulations and
certificate from Auditors are put on the Company’s website
and may be accessed at: http://www.ril.com/DownloadFiles/
IRStatutory/ESOS-2006-Disclosure.pdf and http://www.ril.
com/DownloadFiles/IRStatutory/ESOS-2017-Disclosure.pdf
Auditors and Auditors’ Report
Statutory Auditors
M/s. S R B C & Co. LLP, Chartered Accountants and
M/s. D T S & Associates, Chartered Accountants were
appointed as Auditors of the Company, for a term of 5 (five)
consecutive years, at the Annual General Meeting held
on July 21, 2017. They have confirmed that they are not
disqualified from continuing as 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 has appointed following cost auditors for
conducting the audit of cost records of products and
services of the Company for various segments for the
FY 2018-19:
(i) For Textiles Business - Kiran J. Mehta & Co., Cost
Accountants;
(ii) For Chemicals Business - Diwanji & Co., Cost
Accountants, K.G. Goyal & Associates, Cost
Accountants, V.J. Talati & Co., Cost Accountants,
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 - Diwanji & Co., Cost
Accountants and Kiran J. Mehta & 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 had appointed Dr. K.R. Chandratre, Practising
Company Secretary, to conduct Secretarial Audit for the
FY 2017-18. The Secretarial Audit Report for the financial
year ended March 31, 2018 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 the
year. The 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.
Corporate Social Responsibility and Governance
Committee (CSR&G)
During the year, the Corporate Social Responsibility and
Governance Committee (CSR&G) was re-constituted
by appointing Dr. Shumeet Banerji as a member of the
Committee. The CSR&G Committee comprises
Shri Yogendra P. Trivedi (Chairman), Shri Nikhil R. Meswani,
Dr. Raghunath A. Mashelkar and Dr. Shumeet Banerji.
Vigil Mechanism
RIL has established a robust Vigil Mechanism and a
Whistle-blower policy in accordance with provisions of
the Act and Listing Regulations. The Vigil Mechanism
is supervised by an ‘Ethics & Compliance Task Force’
comprising a member of the Board as the Chairperson and
senior executives as members.
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/DownloadFiles/IRStatutory/Vigil-
Mechanism-and-Whistle-Blower-Policy.pdf
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 233
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 to Note 3, 9, 2, 6, 31 and 37
to the standalone financial statement).
General
Your Directors state that no disclosure or reporting is
required in respect of the following matters as there were no
transactions on these items during the year under review:
• Details relating to deposits covered under Chapter V of
the Act.
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.
•
•
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 Options Plan referred to in this
Report.
Extract of Annual Return
Extract of Annual Return of the Company is annexed
herewith marked 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 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
on all working days, during business hours, at the Registered
Office of the Company. Any member interested in obtaining
such information may write to the Company Secretary and
the same will be furnished on request.
• The Company does not have any scheme of provision of
money for the purchase of its own shares by employees or
by trustees for the benefit of employees.
• Neither the Managing Director nor the Whole-time
Directors of the Company receive any remuneration or
commission from any of its subsidiaries.
• No significant or material orders were passed by the
Regulators or Courts or Tribunals which impact the going
concern status and Company’s operations in future.
• No fraud has been reported by the Auditors to the Audit
Committee or the Board.
Acknowledgement
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 Board 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 27, 2018
Integrated Annual Report 2017–18Board’s Report 234
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
had 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 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
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.
• Technological changes which necessitate significant new
investments in any of the businesses in which the Company
is engaged
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.
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
Parameters to be considered before recommending
dividend
In the event of any conflict between this Policy and the
provisions contained in the Listing Regulations, the
Regulations shall prevail.
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
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 the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 27, 2018
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 235
ANNEXURE II
Companies which became / ceased to be Company’s
Subsidiaries, Joint Ventures or Associate Companies as
per the provisions of the Companies Act, 2013:
1. Companies / Bodies Corporate which became
Subsidiaries during the financial year 2017-18:
Sr.
No.
1
2
3
4
5
6
7
8
9
10
Name of the Company
Aanant Commercial Private Limited
Dreketi S.A
Jalaja Commercials Private Limited
Naroda Power Private Limited
Reliance Content Distribution Limited
Reliance Digital Media Distribution Limited
Reliance GAS Lifestyle India Private Limited
Resolute Land Consortium Projects Limited
Santol Commercials Private Limited
Tangerine Agro Private Limited
2. Companies / Bodies Corporate which ceased to be
Subsidiaries during the financial year 2017-18:
Sr.
No.
1
2
3
4
5
6
7
8
9
Name of the Company
Aanant Commercial Private Limited
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
Girisha Commercials Private Limited
Name of the Company
Sr.
No.
Jalaja Commercials Private Limited
10
Reliance Aerospace Technologies Limited
11
Reliance Commercial Land & Infrastructure Limited
12
Reliance Commercial Trading Private Limited
13
Reliance Eagleford Midstream LLC
14
Reliance Global Business B.V.
15
Reliance Global Commercial Limited
16
Reliance Jio AsiaInfo Innovation Centre Limited
17
Reliance Petroinvestments Limited
18
Reliance Supply Solutions Private Limited
19
Reliance Trading Limited
20
Reliance Universal Commercial Limited
21
22
RIL (Australia) Pty Limited
23 Wave Land Developers Limited
3. Companies / Bodies Corporate which have become Joint
Venture or Associate during the financial year 2017-18.
Sr.
No.
1
Name of the Company
Balaji Telefilms Limited (Associate)
4. Companies / Bodies Corporate which ceased to be a Joint
Venture or Associate during the financial year 2017-18.
Nil
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 27, 2018
ANNEXURE III
Annual Report on Corporate Social Responsibility (CSR) activities for the financial year 2017-18
1.
2
3.
4.
5.
A brief outline of the Company’s CSR Policy including overview of
projects or programs proposed to be undertaken and a reference
to the web-link to the CSR Policy and projects or programs.
The Composition of the CSR Committee
Average net profit of the Company for last three financial years
Prescribed CSR expenditure
(two percent of the amount mentioned in item 3 above)
Details of CSR spent during the financial year:
Total amount to be spent for the financial year
Total Amount spent during the year
Amount unspent, if any
Manner in which the amount spent during the financial year
Refer Section: Corporate Social Responsibility (CSR) in the
Board’s Report
Refer Section: Disclosures: Corporate Social Responsibility
and Governance Committee in the Board’s Report
₹ 35,154.19 crore
₹ 703.08 crore
₹ 703.08 crore
₹ 745.04 crore
Not applicable
Details given below
Integrated Annual Report 2017–18Board’s Report 236
Details of amount spent on CSR activities during the Financial Year 2017-18
Sr. No
CSR project or Activity Identified
Sector in which the project is
covered (Clause number of Schedule
VII to the Companies Act, 2013, as
amended)
Project or Programme
1.
2.
Local Area or Other
Specify the State and district
where projects or programme
was undertaken
Amount Outlay
(Budget) Project or
Program wise
(` in crore)
Amount spent on
the Projects or
Programs:
Sub Heads
Direct
(1)
Expenditure
on Projects or
Programme
Overheads
(` in crore)
F
(2)
Cumulative
Expenditure up
to the reporting
period
(` in crore)
Amount Spent
(Direct or through
Implementing
Agency)
G
H
C
D
E
PAN INDIA
62.10
37.50
264.64 Implementing
PAN INDIA
22.80
16.20
As per Note 1
10.00
9.60
PAN INDIA
35.00
31.40
Agency -
Reliance
Foundation*
62.92 Implementing
Agency -
Reliance
Foundation
21.43 Implementing
Agency -
Reliance
Foundation
45.67 Implementing
Agency -
Reliance
Foundation
As per Note 2
74.00
86.11
144.60 Direct/
Cl (i) Eradicating hunger,
poverty and malnutrition;Cl
(iv) ensuring environmental
sustainability;Cl (x) Rural
Development Projects
Cl (i) Eradicating hunger,
poverty and malnutrition;Cl
(iv) ensuring environmental
sustainability
Cl (x) Rural Development
Projects
Cl (i) Eradicating hunger,
poverty and malnutrition;Cl
(iv) ensuring environmental
sustainability;Cl (x) Rural
Development Projects
Cl (iv) ensuring
environmental sustainability;
Cl (x) Rural Development
Projects
Cl. (i) Promoting health care
including preventive health
care
Maharashtra - Mumbai,
Thane
9.00
4.10
Cl (i) Promoting health care
including preventive health
care
Cl (i) Promoting health care
including preventive health
care
PAN INDIA
3.00
2.70
Maharashtra - Mumbai
1.00
0.11
Implementing
Agency -
Reliance
Foundation
20.23 Implementing
Agency -
Reliance
Foundation
7.05 Implementing
Agency -
Reliance
Foundation
51.61 Implementing
Agency -
Reliance
Foundation
A
B
Rural Transformation
1
RF Bharat India Jodo –
Enhancing Rural Livelihoods
2
3
4
5
Information Services - Enabling
access to need based locale-
specific content in agriculture,
marine fisheries, public health,
disaster response and other
areas by leveraging technology
Community Development -
Rural Development Projects
Partnership with Non-
Government Organisations
CSR Initiatives at
manufacturing locations
Health
6
7
8
Health Outreach Programme
- Static, Mobile Medical
Units and camps for primary
and preventive healthcare
including diagnostics
Drishti Corneal transplant
and other activities for
visually impaired
To develop innovative
technology that will help
train medical students and
clinicians for better diagnosis
and improved healthcare
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 237
Cumulative
Expenditure up
to the reporting
period
(` in crore)
Amount Spent
(Direct or through
Implementing
Agency)
G
1,141.48 Implementing
H
Agency -
Reliance
Foundation
1.95 Implementing
Agency -
Reliance
Foundation
9.68 Implementing
Agency -
Reliance
Foundation
22.67 Implementing
Agency -
Reliance
Foundation
3.08 Implementing
Agency -
Reliance
Foundation
9.03 Implementing
Agency -
Reliance
Foundation
13.58 Implementing
Agency -
Reliance
Foundation
8.65 Implementing
Agency -
Reliance
Foundation
Sr. No
CSR project or Activity Identified
Sector in which the project is
covered (Clause number of Schedule
VII to the Companies Act, 2013, as
amended)
Project or Programme
1.
2.
Local Area or Other
Specify the State and district
where projects or programme
was undertaken
Amount Outlay
(Budget) Project or
Program wise
(` in crore)
Amount spent on
the Projects or
Programs:
Sub Heads
Direct
(1)
Expenditure
on Projects or
Programme
Overheads
(` in crore)
F
(2)
D
E
Maharashtra - Mumbai
163.00
111.10
As per Note 3
1.00
1.00
Maharashtra - Raigad
4.00
4.14
As per Note 4
24.00
11.05
As per Note 1
2.00
1.52
A
9
10
11
12
B
Sir HN Reliance Foundation
Hospital and Research
Centre
C
Cl (i) Promoting health care
including preventive health
care
Health Programme - Mother
& Child Health
Lodhivali Hospital & ART
Clinic
Partnership with Non-
Government Organisations
13
Community Development
14
CSR Initiatives at
manufacturing locations
Education
15
Vocational Skilling Initiative
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
As per Note 2
8.00
12.17
62.02 Direct
Cl (ii) Promoting Education
As per Note 5
7.50
2.50
16
17
Reconstruction of School at
Uttarakhand
Cl (ii) Promoting Education
Uttarakhand - Rudraprayag,
Uttarkashi
3.22
3.14
Dhirubhai Ambani
Scholarship Programme
Cl (ii) Promoting Education
Gujarat - Junagadh
0.49
0.02
18
Reliance University
Cl (ii) Promoting Education
Maharashtra - Raigad
139.00
303.57
589.69 Implementing
Agency -
Reliance
Foundation
/ Reliance
Foundation
Institution of
Education and
Research**
Integrated Annual Report 2017–18Board’s Report 238
Sr. No
CSR project or Activity Identified
Sector in which the project is
covered (Clause number of Schedule
VII to the Companies Act, 2013, as
amended)
Project or Programme
1.
2.
Local Area or Other
Specify the State and district
where projects or programme
was undertaken
Amount Outlay
(Budget) Project or
Program wise
(` in crore)
Amount spent on
the Projects or
Programs:
Sub Heads
Direct
(1)
Expenditure
on Projects or
Programme
Overheads
(` in crore)
F
(2)
Cumulative
Expenditure up
to the reporting
period
(` in crore)
Amount Spent
(Direct or through
Implementing
Agency)
G
H
3.70 Implementing
Agency -
Reliance
Foundation
C
Cl (ii) Promoting Education
D
As per Note 6
E
-
-
A
19
20
21
B
Digital Education
Initiatives
Partnership with Non-
Government Organisations
CSR Initiatives at
manufacturing locations
Cl (ii) Promoting Education
As per Note 7
76.00
45.99
116.65 Implementing
Cl (ii) Promoting Education
As per Note 2
15.00
15.72
96.49 Direct
Agency -
Reliance
Foundation
Sports for Development
22
Promoting Grassroot Sports Cl (vii) Training to promote
PAN INDIA
64.00
37.61
Rural Sports, Nationally
recognized sports and
Olympic sports
Cl (vii) Training to promote
Rural Sports, Nationally
recognized sports and
Olympic sports
Cl (vii) Training to promote
Rural Sports, Nationally
recognized sports and
Olympic sports
Cl (vii) Training to promote
Rural Sports, Nationally
recognized sports and
Olympic sports
Cl (x) Rural Development
Projects
23
Reliance Foundation Jr. NBA
Programme
24
RF Young Champs
25
Partnership with Non-
Government Organisations
Disaster Response
26
Disaster Relief
PAN INDIA
4.00
2.95
Maharashtra - Thane
6.00
2.48
Maharashtra - Thane
0.10
0.07
As per Note 8
11.79
1.09
Urban Renewal
27
Environment - RF - Urban
Renewal Initiatives
Cl (iv) Ensuring
environmental sustainability,
ecological balance
Maharashtra - Mumbai
2.00
0.34
59.46 Implementing
Agency -
Reliance
Foundation
Youth
Sports ***
13.44 Implementing
Agency -
Reliance
Foundation
9.65 Implementing
Agency -
Reliance
Foundation
0.07 Implementing
Agency -
Reliance
Foundation
17.72 Implementing
Agency -
Reliance
Foundation
4.20 Implementing
Agency -
Reliance
Foundation
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice Amount spent on
the Projects or
Programs:
Sub Heads
Direct
(1)
Expenditure
on Projects or
Programme
Overheads
(` in crore)
F
(2)
239
Cumulative
Expenditure up
to the reporting
period
(` in crore)
Amount Spent
(Direct or through
Implementing
Agency)
G
H
2.14 Implementing
Agency -
Reliance
Foundation
Sr. No
CSR project or Activity Identified
Sector in which the project is
covered (Clause number of Schedule
VII to the Companies Act, 2013, as
amended)
Project or Programme
1.
2.
Local Area or Other
Specify the State and district
where projects or programme
was undertaken
Amount Outlay
(Budget) Project or
Program wise
(` in crore)
A
B
Arts, culture and heritage
28
Promoting Traditional Arts
and Culture
C
D
E
Cl (v) Protection of national
heritage, art & culture
Maharashtra - Mumbai
1.00
0.85
29
CSR Initiatives at
manufacturing locations
Grand Total
Cl (v) Protection of national
heritage, art & culture
As per Note 2
1.00
0.01
12.86 Direct
750.00
745.04
2,816.36
Note 1: Assam - Golaghat; Gujarat - Bharuch, Jamnagar, Navsari, Surat; UT of DNH - Silvassa, Haryana - Rewari; Karnataka - Dakshina Kannada;
Madhya Pradesh - Bhopal, Annuppur, Shahdol; Maharashtra - Mumbai, Palghar, Raigad, Thane; Tamil Nadu - Thiruvallur;
Uttar Pradesh - Kanpur Dehat; West Bengal - East Midnapur
Note 2: Andhra Pradesh - East Godavari; Gujarat - Bharuch, Jamnagar, Surat, Vadodara, Ahmedabad ; Madhya Pradesh - Shahdol ; Maharashtra - Nagpur, Raigad;
Uttar Pradesh - Allahabad, Barabanki; Punjab - Hoshiarpur
Note 3: Maharashtra - Mumbai, Yavatmal, Gangakhed; Gujarat - Jasdan, Bharuch; Madhya Pradesh - Seoni, Chhindwara; Rajasthan - Sawai Madhopur, Banswara
Note 4: Maharashtra - Ahmednagar, Mumbai, Nashik, Thane; Rajasthan - Udaipur; Telangana - Warangal; Uttarakhand - Dehradun
Note 5: Andhra Pradesh - East Godavari; Maharashtra - Mumbai; West Bengal - Kolkata
Note 6: Andhra Pradesh - Anantpur, Chitoor, Guntur, Kadapa, Krishna, Kurnool, Prakasham, Srikakaulam, Vishakapatnam, East Godavari, Nellore, Warangal, Vizianagar;
Gujarat - Junagadh, Mehsana, Vadodara, Ahmedabad; Madhya Pradesh - Shahdol; Telangana - Khammam, Ranga Reddy
Note 7: Chhattisgarh - Raipur; Delhi - Delhi, New Delhi; Gujarat - Ahmedabad; Maharashtra - Mumbai
Note 8: Jammu & Kashmir - Jammu; Uttarakhand - Rudraprayag
*
**
***
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.
Reliance Foundation Institution of Education and Research (RFIER) is a company within meaning of Section 8 of the Companies Act, 2013 to promote,
encourage, support and assist educational, research and medical activities.
Reliance Foundation Youth Sports (RFYS) is a company within 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 of
CSR activities have been carried with support of several other Non-Government Organisation or charitable institutions.
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 27, 2018
Integrated Annual Report 2017–18Board’s Report
240
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;
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;
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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;
(ii) who is not related to promoters or
directors in the company, its holding,
subsidiary or associate company;
c. 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
241
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) a firm of auditors or company
secretaries in practice or cost
auditors of the company or its
holding, subsidiary or associate
company; or
(B) 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
percent 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,
Integrated Annual Report 2017–18Board’s Report
242
sales, marketing, 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.
4.3.2 A Director shall not serve as Director in
more than 20 companies of which not more
than 10 shall be Public Limited Companies.
4.3.3 A Director shall not serve as an Independent
Director in more than 7 Listed Companies
and not more than 3 Listed Companies in
case he is serving as a Whole-time Director
in any Listed Company.
4.3.4 A Director shall not be a member in more
than 10 Committees or act as Chairman
of more than 5 Committees across all
companies in which he holds directorships
For the purpose of considering the limit
of the Committees, Audit Committee and
Stakeholders’ Relationship Committee
of all Public Limited Companies, whether
listed or not, shall be included and all
other companies including Private
Limited Companies, Foreign Companies
and Companies under Section 8 of the
Companies Act, 2013 shall be excluded.
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 27, 2018
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 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.
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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;
(ii) the Company Secretary;
(iv) Commission (Applicable in case of
Executive Directors)
(v)
Retiral benefits
(vi) Annual Performance Bonus
4.1.4 The Annual Plan and Objectives for
Executive Directors and Senior Executives
(Executive Committee) shall be reviewed
by the HRNR Committee and Annual
Performance Bonus will be approved by the
Committee based on the achievements
against the Annual Plan and Objectives.
(iii) the Whole-time Director;
4.2 Remuneration to Non-Executive Directors
4.2.1 The Board, on the recommendation of
the HRNR Committee, shall review and
approve the remuneration payable to the
Non-Executive Directors of the Company
within the overall limits approved by the
shareholders.
4.2.2 Non-Executive Directors shall be entitled
to sitting fees for attending the meetings
of the Board and the Committees thereof.
The Non-Executive Directors shall also
be entitled to profit related commission in
addition to the sitting fees.
4.3 Remuneration to other employees
4.3.1 Employees shall be assigned grades
according to their qualifications and
work experience, competencies as well
as their roles and responsibilities in the
organisation. Individual remuneration shall
be determined within the appropriate grade
and shall be based on various factors such
as job profile, skill sets, seniority, experience
and prevailing remuneration levels for
equivalent jobs.
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 27, 2018
(iv) the Chief Financial Officer; and
(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
Integrated Annual Report 2017–18Board’s Report
244
ANNEXURE V
Secretarial Audit Report
For the Financial Year ended March 31, 2018
[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
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 authorised
representatives during the conduct of secretarial audit, I
hereby report that in my opinion, the Company has, during the
audit period covering the financial year ended on March 31,
2018 (‘Audit Period’) complied with the statutory provisions
listed hereunder and also that the Company has proper Board-
processes and compliance-mechanism in place to the extent,
in the manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and
returns filed and other records maintained by the Company
for the financial year ended on 31 March 2018 according to the
provisions of:
(i)
(ii)
(iii)
(iv)
The Companies Act, 2013; the Companies Act, 1956 (the
Act) and the rules made thereunder;
The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)
and the rules made thereunder;
The Depositories Act, 1996 and the Regulations and Bye-
laws framed thereunder;
Foreign Exchange Management Act, 1999 and the rules
and regulations made thereunder to the extent of Foreign
Direct Investment, Overseas Direct Investment and
External Commercial Borrowings;
(v)
The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’): -
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015;
The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2009
The Securities and Exchange Board of India (Share
Based Employee Benefits) Regulations, 2014;
The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008;
The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Act and dealing
with client;
The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009 (Not
applicable to the Company during the Audit Period);
The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 1998 (Not
applicable to the Company during the Audit Period);
and
(i)
The Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015.
I have also examined compliance with the applicable
clauses of the following:
(i)
(ii)
Secretarial Standards issued by The Institute of
Company Secretaries of India; and
The Listing Agreements entered into by the
Company with the Stock Exchanges.
During the period under review, the Company has
complied with the provisions of the Act, Rules,
Regulations, Guidelines, Standards, etc. mentioned
above.
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I further report that, having regard to the compliance
system prevailing in the Company and on examination of
the relevant documents and records in pursuance thereof
on test-check basis, the Company has complied with the
following laws applicable specifically to the Company:
(a)
Merchant Shipping Act, 1958 and Rules made
thereunder;
(b)
Petroleum Act, 1934 and Rules made thereunder
(c)
Oil Field (Regulation and Development) Act, 1948
and Rules made thereunder;
(d)
The Mines Act, 1952 and Rules made thereunder.
(e)
The Petroleum and Natural Gas Regulatory Board
Act, 2006 and the Rules made thereunder.
I further report that
The Board of Directors of the Company is duly
constituted with proper balance of Executive Directors,
Non-Executive Directors and Independent Directors. The
changes in the composition of the Board of Directors that
took place during the period under review were carried
out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the
Board Meetings. 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
•
•
•
•
•
•
Issued and allotted Unsecured, Listed Redeemable
Non-convertible Debentures on Private Placement,
aggregating ` 20,000 Crore in six tranches as per the
terms of issue of respective tranche.
Redeemed Non-convertible Debentures aggregating
` 133 Crore as per the terms of issue.
Increased its Authorized Share Capital from
` 6000,00,00,000/- (Rupees Six Thousand Crore
only) divided into 500,00,00,000 (Five Hundred
Crore) equity shares of ` 10/- (Rupees Ten only)
each and 100,00,00,000 (One Hundred Crore)
preference shares of ` 10/- (Rupees Ten only) each to
` 15000,00,00,000/- (Rupees Fifteen Thousand Crore
only) divided into 1400,00,00,000 (Fourteen Hundred
Crore) equity shares of ` 10/– (Rupees Ten only) each
and 100,00,00,000 (One Hundred Crore) preference
shares of ` 10/– (Rupees Ten only) each.
Issued and allotted 308,03,34,238 fully paid-up equity
shares of ` 10/- (Rupees Ten only) each by way of
Bonus issue in the proportion of 1 (One) fully paid-up
equity share of ` 10/- (Rupees Ten only) each for every
1 (One) fully paid-up equity share of ` 10/- (Rupees
Ten only) each held as on Record Date i.e. September
9, 2017, fixed for this purpose.
Approved ‘Reliance Industries Limited Employees’
Stock Option Scheme 2017’ (“ESOS 2017”) for
employees of the Company.
Approved ‘Reliance Industries Limited Employees’
Stock Option Scheme 2017’ (“ESOS 2017”) for
employees of the subsidiary companies of the
Company
Dr. K. R. Chandratre
FCS No. 1370, C P No: 5144
Place: Pune
Date: April 27, 2018
Integrated Annual Report 2017–18Board’s Report
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
(a) Steps taken to conserve energy
In light of the global challenges concerning energy
security, Reliance Industries Limited (RIL) considers
energy management as one of the key components of
its responsible business strategy.
Major energy conservation initiatives taken during the
FY 2017-18:
Refining and Marketing
Jamnagar Manufacturing Division (DTA)
•
Heat recovery from LCGO (Light cycle gas oil)
pump-around stream at stripper re-boiler of coker
gas conditioning section to avoid medium pressure
steam consumption;
•
•
•
Recover low level heat from overhead fin fans of
crude distillation unit’s fractionator column and
utilise the same to preheat raw crude feed resulting
in reduced steam consumption;
Heat recovery from deheptaniser (Train 1) column
overhead stream in DTA-Aromatics to increase the
temperature of feed to the xylene column in Isomar
unit. This resulted in reduction of fuel consumption
in re-boiler of xylene column and additional
generation of medium pressure steam from column
overhead circuit.
Installed an in-house developed control system
for steam ejectors (from first principles) to reduce
Medium Pressure steam consumption in Crude
Distillation Units.
Jamnagar Manufacturing Division (SEZ)
•
In Alkylation unit, use low pressure steam to heat
the feed to de-butaniser column and thereby reduce
medium pressure steam consumption in its reboiler.
Petrochemicals
Hazira Manufacturing Division
•
Re-define the speed control strategy of the
induction fans of cracking furnaces to optimise
quantity of combustion air and thereby also optimise
consumption of fuel gas motor power;
•
Optimisation of reflux in debutaniser, depentaniser
and benzene columns to suit the loading of the
•
•
•
•
plant resulting in reduced steam consumption in the
column re-boilers;
Improved heat recovery from flue gases in Cracker
furnace’s convection coils by water washing;
Installation of a parallel steam header for evacuating
increased low pressure steam generated from
reactor exotherm in PTA Plant and reducing pressure
drop in the pipelines
New pressure control system in benzene tower
resulting in higher heat recovery to Naphtha stream
and thereby reduced fuel fired in cracker furnace;
Reduction in consumption of high pressure steam
by replacing thermodynamic steam traps with
inverted bucket steam traps in extrusion section of
Polypropylene Plant;
Vadodara Manufacturing Division
•
•
•
•
•
Improved heat recovery in heat exchanger network
through modifications in 1st stage hydrogenation in
Pyrolysis Gasoline Hydrogenation Unit;
Reduced consumption of high pressure steam by
preheating feed to Clay Tower using lean sulfolane
solvent from Ethylene Di-Chloride side reboiler
outlet;
Installation of flash vessel to generate steam from
reactor exotherm in LDPE Plant
Reduced steam consumption in cycle gas heater by
preheating feed gasses with hot wash water in EOEG
Plant;
Heat recovery for pre-heating of boot water and
finishing of recycled water using stripper overhead
vapours in PBR Plant.
Dahej Manufacturing Division
•
•
Replacing process off gas consumption with excess
nitrogen available and generating additional power
in off gas expander in PTA Plant.
Optimising pressure of intermediate pressure steam
to increase flash steam generation and reduce net
steam consumption in PTA Plant.
Nagothane Manufacturing Division
•
Achieved increase in cracked gas compressor
turbine efficiency by refurbishment of components
and modification of internal design;
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•
•
Refurbished ethylene refrigeration compressor
turbine internals and improving operating efficiency;
Refractory replacement and improving the heat
recovery performance, resulted in increased
efficiency of gas cracker furnace;
Patalganga Manufacturing Division
•
Achieved increased heat recovery in combined feed
exchanger of platformer through chemical cleaning
Other initiatives taken at various manufacturing
divisions
•
At Barabanki, Naroda, Silvassa and Hoshiarpur
manufacturing division, old pumps were replaced
with energy efficient ones. Conventional tube lights
were replaced with LED tube lights.
RIL has been gearing up to contribute to the major
clean energy initiatives of the Govt of India, namely
“Renewable Purchase Obligation (RPO)’ and
‘Perform, Achieve & Trade (PAT)’.
On March 28, 2018, the cracker based manufacturing
units of RIL, namely at Hazira, Dahej, Vadodara and
The capital investment on energy conservation equipment
Manufacturing Division
Refining & Marketing
Jamnagar manufacturing division (DTA)
Jamnagar manufacturing division (SEZ)
Petrochemicals
Hazira manufacturing division
Vadodara manufacturing division
Dahej manufacturing division
Nagothane manufacturing division
Patalganga manufacturing division
Other manufacturing divisions
(b)
Sr.
No
(I)
1
2
(II)
3
4
5
6
7
8
Nagothane have each been notified as ‘Designated
Consumer’ for PAT Cycle III (performance years
2017-18 to 2019-20).
Majority of RIL’s electrical power requirement is
met through Cogeneration process, which as per
Electricity Act 2003, needs to be promoted along
with Renewable sources.
Major Subsidiaries (Retail and Jio) and major office
locations
•
Installed LEDs that resulted in energy savings of
1,379 Gcal/hour
•
•
•
•
Installed strip curtain that resulted in energy savings
of 35 Gcal/hour
Increased solar rooftop capacity that resulted in
total energy savings of 27 Gcal/hour
Installed motion sensors that resulted in energy
savings of 35 Gcal/hour
Improved HVAC and switch sensor systems that
resulted in total energy savings of 329 Gcal/hour
Capital
investments on
energy efficient
equipment’s
(` in crore)
Energy
savings
(Gcal/hr)
Financial
saving
(` in crore per
Annum)
53.72
6.63
3.46
13.31
0.09
3.00
1.40
1.03
40.56
5.40
25.92
7.28
8.22
11.85
0.07
0.23
67.16
9.03
31.17
15.29
7.04
18.75
0.98
0.99
B. Technology Absorption
1) Major efforts made towards 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 business and create breakthrough
technologies for new businesses, (ii) advanced
troubleshooting, and (iii) support to capital projects, and
profit and reliability improvements in manufacturing
plants.
Refining and Marketing
•
•
•
Light coker naphtha processing in SEZ fluidised
catalytic converter (FCC) to enable higher
propylene and ethylene production
DTA coker feed window widening with respect to
metals and asphaltenes by using clarified slurry oil
(CSO) with feed
Low cost green process development for valuable
metal extraction from gasification slag
Integrated Annual Report 2017–18Board’s Report
248
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Development of process for waste plastic
conversion to oil
Value creation from refinery waste by-product
: Using sodium free di-sulphide oils (DSO) to
replace dimethyl disulphide (DMDS) in gas and
naphtha cracker and hydrotreater
Straight run fuel oil (SRFO) processing in coker
unit to improve profitability
Green process and catalyst for direct synthesis
of dimethyl carbonate (DMC) from CO2 and
methanol
Process and catalyst to produce CO from CO2
Optimized coker antifoulant for increasing
throughput and reliability
In-house developed flasher for removal of H2S
from brine at low capex
Process development for CO2 recovery using
novel adsorbent concept
Development of high active FCC catalyst
Proprietary accelerated deactivation protocol
used to select the best vacuum gas oil
hydrotreater (VGOHT) catalyst
Catalyst trials in FCC for continuous yield
improvement/profitability
Catalytic gasification studies in outside lab proving
the concept in continuous bench scale unit
Separation of active catalyst from FCC ecat
Process for direct conversion of syngas to olefins
Electro-reduction of CO2 to ethanol
Different options for CO2 and syn gas to value
products
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 platformer model developed and is
being used to maximise value of C5-C12 pool.
• Development of in-house RIL model for VGOHT.
•
•
Corrected naphtha composition in crude assays to
improve accuracy of linear programming (LP) model
Online corrosion monitoring dashboard
developed with CFD based shear computations to
monitor 44 locations in heavy vacuum gas oil loop
(HVGO) loop.
•
•
Web-portal developed to visualize the corrosive
/ passive molecules in crudes or blends and study
their impact on corrosion.
Fluxant recipe optimisation for gasifier
operations
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
Purification of crude terephthalic acid using ionic
liquids based technology to significantly reduce
operations and capital cost
Novel processes for production of polymer
monomers such 1-hexene, butadiene, isoprene
Low energy catalytic process for n-alkane to
aromatics
Value addition of carbon dioxide and syngas to
chemicals
Eco-smart Polyvinyl Chloride (PVC) development
for specialty applications
New ionomeric material development based
on butyl rubber, styrene butadiene rubber,
polybutadiene rubber for pharmaceutical and
automobile applications
Bio-compostable polymers development for
packaging applications to reduce plastic waste
generation and adverse environmental effects
Development of engineering thermoplastics and
biodegradable polymers based on sustainable
resources like CO2
Development of engineering thermoplastics e.g.,
polyphenylene sulfide for automobile, industrial
and aerospace applications
Sulphur based interpenetrating network
polymers with lower H2S & SO2 emissions
development for various applications in
construction industry
Novel polyolefins product development ranging
from medium to high molecular weight for high
strength niche applications
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
249
•
•
•
•
•
•
•
•
•
•
•
Unique polyolefin product development for 3D
printing
Hydrophilic polypropylene development for
construction and packaging applications
Novel styrene butadiene rubber development for
automobile segment with higher fuel efficient and
longer durability with lower carbon emission
Impact copolymer (ICP) and homo grade
polypropylene development through Reliance
proprietary advanced catalyst system for
better operational reliability and higher product
performance
High melt flow polypropylene grades for
automobile industry by next gen Reliance
proprietary catalyst system
Gas phase polyethylene process and products
development through Ziegler-Natta (ZN) catalyst
Metallocene polyethylene products and process
development for packaging applications
High green strength butyl rubber product
development for automobile segment
Poly isobutylene development through novel
catalytic route for higher yield with superior
microstructure
Self-adhesive materials development for health
sector
Development of linen like polyester for fancy
effect in fabric
• Development of wipe free spinneret
•
•
•
•
•
•
•
Reduced plate thickness spinnerets for
productivity enhancement
Non-circular cross section filaments for moisture
management
Development of Recro-therm fibre for low weight
and warmth in suiting, shirting and bottom wears
Development of speciality polyester fibre for
concrete application
Development of specialty polyester fibre for soil
stabilisation
Development of fancy yarn from mix profiled
capillaries
Development of moisture management fibre
through topical treatment and capillary profile
modification
•
•
Development of durable antibacterial fibre
through topical treatment route
Development and launch of high quality
performance flame retardant polyester
Biofuels and Bio-Chemicals
•
Development of ‘Green Bio crude’ and by-
products 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
Popularizing the cultivation of bio-fuel crops
by growers by conducting method and varietal
demonstrations
Development of catalytic hydrothermal
liquefaction technology for converting wet waste
to wealth
Development of catalyst for upgrading crude
biofuel to reduce acidity (Total Acidity Number)
and enhancing the oil stability
Developed capabilities to design novel metabolic
pathways for biochemicals from syngas,
demonstrated production of chemical in syngas
utilizing bacteria
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
Integrated Annual Report 2017–18Board’s Report
250
2.
3.
•
•
One step process for production of carbon
nanotubes (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
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 2017-18 is approximately ` 486 crore.
Apart from the above monetary savings,there are
other benefits from R&D i.e.
1. Transition from smart buyer of technology to a
flagship developer of technology
2. Future ready for next generation businesses and
mitigating disruption in existing business.
3. Sustaining competitive advantage
4. Generating new intellectual properties
5. Product stewardship
Information regarding imported technology (imported during last three years)
Details of technology imported
Year of import Status implementation / absorption
Technology
imported
from
Exxon Mobil
Liquid Phase Isomerization
AMT-ADP process for azeotropic distillation AMT, USA
Yarsintez,
Halogenated Isobutylene Isoprene Rubber
Russia
(HIIR), JV with Sibur
TMT, Japan
New generation FDY spinning machines
Dalian, China
SSP and IDY spinning
and TMT,
Japan
Particulars
4. Expenditure incurred on Research and Development
Sr.
No
a)
b)
(` in crore)
Capital
Revenue
Total
1,026
798
1,824
2017-18
2015-16
2015-16
2015-16
2015-16
Plant under construction
Design and construction under progress
Detail engineering under progress
Plant commissioned
Plant commissioned
(II) Total Foreign exchange Earned and Used
Particulars
Foreign Exchange earned in terms of
Actual Inflows
Foreign Exchange outgo in terms of
Actual Outflows
₹ in crore
1,69,763
2,21,977
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.
Note: Actual inflows does not include total savings in Foreign
Exchange through products manufactured by the Company
and deemed exports amounting to ₹ 73,736 crore (US$ 11.3
billion).
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
₹1,69,325 crore (US$ 26.0 billion).
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 27, 2018
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
251
Annexure VII
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on March 31, 2018
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
I.
i)
ii)
iii)
iv)
v)
Registration and other Details
CIN
Registration Date
Name of the Company
Category / Sub-Category of the Company
Address of the Registered office and contact details
vi)
vii)
Whether listed company
Name, Address and Contact details of Registrar and Transfer Agent, if any
L17110MH1973PLC019786
08-05-1973
Reliance Industries Limited
Public Company Limited by share
3rd Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
Tel: +91 22 3555 5000
Fax: +91 22 2204 2268 / 2285 2214
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
Principal Business Activities of the Company
All the business activities contributing 10% or more of the total turnover of the Company As per Attachment A
Particulars of holding, subsidiary and associate companies
As per Attachment B
II.
III.
IV.
i)
ii)
iii)
iv)
v)
V.
VI.
i)
ii)
iii)
Shareholding Pattern (Equity Share Capital breakup as percentage of
total equity)
Category-wise Shareholding
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 (MD), Whole-time Directors (WTD) and / or
Manager
Remuneration to other directors
Remuneration to Key Managerial Personnel other than MD / Manager / WTD
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
VII.
Penalties / Punishment/ Compounding of Offences
Integrated Annual Report 2017–18Board’s Report 252
Attachment A
II. Principal Business Activities 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 *
% to total turnover of
the company #
64.19
34.79
192 - Manufacture of refined petroleum products
201 - Manufacture of basic chemicals, fertilizers and
nitrogen compounds, plastic and synthetic rubber in
primary forms
061 - Extraction of Crude petroleum &
062 - Extraction of Natural Gas
0.78
0.24
3
4
Oil & Gas
Others
* As per National Industrial Classification- 2008, Ministry of Statistics and Programme Implementation
# On the basis of Gross Turnover
Attachment B
III.
Sr. No. Name of Company
Particulars of Holding, Subsidiary and Associate Companies / Bodies Corporate
Address of Company
CIN / GLN
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Affinity Names, Inc
Aurora Algae Inc
Dreketi S.A.
Ethane Crystal LLC
Ethane Emerald LLC
Ethane Opal LLC
Ethane Pearl LLC
Ethane Sapphire LLC
Ethane Topaz LLC
Indiawin Sports Private
Limited
Jio Information Solutions
Limited (Formerly known as
Reliance Textiles Limited)
Jio Payments Bank Limited
Kanhatech Solutions
Limited
Model Economic Township
Limited
Capitol Services, Inc. 1675 S. State
Street, Suite B, Dover, Delaware 19901
Capitol Services, Inc. 1675 S. State
Street, Suite B, Dover, Delaware 19901
Juncal 1392, Montevideo, Uruguay
Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.
Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.
Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.
Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.
Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.
Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro,
Marshall Islands MH96960.
3rd Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
Plot No. 384/2, Near Abhishek Complex,
Opp. Amola Chambers, C.G. Road,
Ahmedabad – 380 009
3rd Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai - 400 021
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
3rd Floor, 77-B, IFFCO Road,
Sector-18, Gurgaon-122015
Holding /
Subsidiary /
Associate
Subsidiary
% of
Shares
held*
100.00
Applicable
section
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
Subsidiary
100.00
100.00
2(87)(ii)
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
-
-
-
-
-
-
-
-
-
U51109MH2007PTC176254
Subsidiary
100.00
2(87)(ii)
U65100GJ2015PLC082664
Subsidiary
100.00
2(87)(ii)
U65999MH2016PLC287584
Subsidiary
70.00
2(87)(ii)
U52599MH2007PLC176414
Subsidiary
100.00
2(87)(ii)
U70109HR2006PLC036416
Subsidiary
100.00
2(87)(ii)
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 253
Holding /
Subsidiary /
Associate
Subsidiary
% of
Shares
held*
100.00
Applicable
section
2(87)(ii)
U40108GJ2016PTC093588
-
Subsidiary
100.00
2(87)(ii)
U01119MH2006PTC162902
Subsidiary
100.00
2(87)(ii)
U23200MH1993PLC190934
Subsidiary
100.00
2(87)(ii)
U51900MH2007PLC174470
Subsidiary
80.00
2(87)(ii)
U24110MH1990PLC059590
Subsidiary
100.00
2(87)(ii)
U17120MH2008PTC180384
Subsidiary
100.00
2(87)(ii)
U51909MH2006PLC166162
Subsidiary
99.99
2(87)(ii)
U52599MH2006PTC164458
Subsidiary
100.00
2(87)(ii)
U74999MH2017PLC299342
Subsidiary
100.00
2(87)(ii)
U74140MH2001PLC131458
Subsidiary
100.00
2(87)(ii)
U74999MH2017PLC299344
Subsidiary
100.00
2(87)(ii)
-
-
-
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
U51100MH2005PTC302793
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)
U52609MH2017PTC291039
Subsidiary
51.00%
2(87)(ii)
III.
Sr. No. Name of Company
Particulars of Holding, Subsidiary and Associate Companies / Bodies Corporate
Address of Company
CIN / GLN
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Naroda Power Private
Limited
Plot No. 384/2, Near Abhishek Complex,
Opp, Amola Chambers, C.G Road,
Ahmedabad, GJ, 380 009
Recron (Malaysia) Sdn. Bhd. Suite 7.01-7.03, Level 7,
Reliance Ambit Trade
Private Limited
Reliance Aromatics and
Petrochemicals Limited
Reliance Brands Limited
Wisma Goldhill, 67, Jalan Raja Chulan,
50200 Kuala Lumpur, Malaysia
4th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai - 400 002
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai - 400 021
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
Reliance Digital Media
Distribution Limited
Reliance Eagleford
Upstream GP LLC
Reliance Eagleford
Upstream Holding LP
Reliance Eagleford
Upstream LLC
Reliance Clothing India
Private Limited
Reliance Commercial
Dealers Limited
Reliance Comtrade Private
Limited
Reliance Content
Distribution Limited
Reliance Corporate IT Park
Limited
Reliance Chemicals Limited 9th Floor, Maker Chambers IV, 222
Nariman Point, Mumbai - 400 021
3rd Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
4th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai-400 002
9th Floor, Maker Chambers IV 222,
Nariman Point Mumbai- 400 021
Reliance Corporate Park, Building No.4,
5, TTC Industrial Area, Thane- Belapur
Road, Ghansoli, Navi Mumbai,
Thane – 400 701
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
Capitol Corporate Services, Inc. 206E.9th
St., Suite 1300, Austin, Tx 78701-4411
Capitol Corporate Services, Inc. 206E.9th
St., Suite 1300, Austin, Tx 78701-4411
Delaware International Registry &
Incorporation Service LLC, 301 North
Market Street, Farmers Bank Building,
Wilmington, Delaware 19901
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
9th Floor, Maker Chambers IV, 222
Nariman Point, Mumbai - 400 021
4th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
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
8th Floor, Maker Tower E, Cuffe Parade,
Mumbai- 400 005
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 Lifestyle India
Private Limited (Formerly
known as Reliance Brands
Luxury Private Limited)
Reliance Gas Pipelines
Limited
Reliance Global Energy
Services (Singapore) Pte
Ltd
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
250 North Bridge Road,
#16-01 Raffles City Tower,
Singapore-179101
U60300MH1991PLC059678
Subsidiary
100.00
2(87)(ii)
-
Subsidiary
100.00
2(87)(ii)
Integrated Annual Report 2017–18Board’s Report 254
III.
Sr. No. Name of Company
Particulars of Holding, Subsidiary and Associate Companies / Bodies Corporate
Address of Company
CIN / GLN
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
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-GrandOptical
Private Limited
Reliance Jio Digital Services
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 Limited
Reliance Jio Messaging
Services Limited
Reliance Lifestyle Holdings
Limited
Reliance LNG Limited
Reliance Marcellus II LLC
56
Reliance Marcellus LLC
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
Unit No. 1801, Jumeirah, Business
Centre 3, Plot No. JLT-PH2-Y1A,
Jumeirah Lakes Towers, Dubai, U.A.E
4th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai-400 002
5th Floor, Dhobi Talao, Court House,
Lokmanya Tilak Marg, Mumbai - 400 002
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai-400 021
3010 Gaylord Parkway, Suite 150, Frisco,
Texas 75034
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai-400 021
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- 400 021
3rd Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai - 400 021
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai - 400 021
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
4th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware -19901
Capitol Services, Inc.
1675 S. State Street, Suite B, Dover,
Delaware -19901
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
57
58
59
60
61
62
63
Reliance Payment Solutions
Limited
Reliance Petro Marketing
Limited
Reliance Polyolefins Limited 9th Floor, Maker Chambers IV, 222
Nariman Point, Mumbai - 400 021
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
4th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai-400 002
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
Reliance Progressive
Traders Private Limited
Reliance Prolific
Commercial Private Limited
Reliance Prolific Traders
Private Limited
Reliance Retail Finance
Limited
Holding /
Subsidiary /
Associate
Subsidiary
% of
Shares
held*
100.00
Applicable
section
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
-
-
U65910MH1986PLC041081
Subsidiary
100.00
2(87)(ii)
-
Subsidiary
100.00
2(87)(ii)
U52100MH2007PTC174895
Subsidiary
100.00
2(87)(ii)
U51900MH2007PTC175638
Subsidiary
100.00
2(87)(ii)
U72900MH2013PLC239846
Subsidiary
100.00
2(87)(ii)
-
Subsidiary
100.00
2(87)(ii)
U72900MH2007PLC234712
Subsidiary
99.57
2(87)(ii)
-
-
-
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
U64200MH2013PTC239845
Subsidiary
100.00
2(87)(ii)
U92100MH2013PLC239849
Subsidiary
100.00
2(87)(ii)
U32204MH2013PLC239944
Subsidiary
100.00
2(87)(ii)
U01403MH2007PLC172415
Subsidiary
100.00
2(87)(ii)
U23203MH2000PLC127885
Subsidiary
90.00
2(87)(ii)
-
-
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
U65923MH2007PLC173923
Subsidiary
100.00
2(87)(ii)
U74210MH1999PLC120377
Subsidiary
100.00
2(87)(ii)
U99999MH1992PLC065847
Subsidiary
100.00
2(87)(ii)
U51100MH2005PTC302792
Subsidiary
100.00
2(87)(ii)
U01122MH2006PTC161600
Subsidiary
100.00
2(87)(ii)
U51100MH2005PTC302788
Subsidiary
100.00
2(87)(ii)
U17110MH2000PLC123731
Subsidiary
100.00
2(87)(ii)
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice 255
Holding /
Subsidiary /
Associate
Subsidiary
% of
Shares
held*
100.00
Applicable
section
2(87)(ii)
III.
Sr. No. Name of Company
Particulars of Holding, Subsidiary and Associate Companies / Bodies Corporate
Address of Company
CIN / GLN
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
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 Universal
Enterprises Limited
Reliance Universal Traders
Private Limited
Reliance Vantage Retail
Limited
Reliance Ventures Limited
Reliance World Trade
Private Limited
Resolute Land Consortium
Projects Limited
RIL Exploration and
Production (Myanmar)
Company Limited
RIL USA, Inc
RP Chemicals (Malaysia)
Sdn Bhd
Santol Commercials Private
Limited
Surela Investment and
Trading Private Limited
Tangerine Agro Private
Limited
Balaji Telefilms Limited
Gujarat Chemical Port
Terminal Company Limited
Indian Vaccines
Corporation Limited
Reliance Europe Limited
Reliance Industrial
Infrastructure Limited
3rd Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai-400 002
3rd Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai- 400 002
4th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
Admin Building, MTF Area, Village Sikka,
Taluka & District Jamnagar – 361140
3rd Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
9th Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai – 400 021
Avdesh House, 3rd Floor,
Pritam Nagar, 1st Slope,
Ellisbridge, Ahmedabad - 380 006
3rd Floor, 77- B, IFFCO Road, Sector- 18,
Gurgaon, 122 015
Level 8, Center Point Towers, No. 65,
Corner of Sule Pagoda Road & Merchant
Street, Kyauktada Township, Yangon.
251, Little Falls Drive, Wilmington, DE
19808, USA
Level 8, Symphony House, Pusat
Dgangan Dana1, Jalan PJU 1A/46, 47301
Petaling Jaya, Selangor Darul Ehsan,
Malaysia
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
Swadeshi Complex, Tower 2,
Swadeshi Mills Road, Chunabhatti (East),
Mumbai – 400 022
5th Floor, Court House, Lokmanya Tilak
Marg, Dhobi Talao, Mumbai – 400 002
C-13, Balaji House, Dalia Industrial
Estate, Opp. Laxmi Indl Estate, New Link
Road, Andheri (West), Mumbai - 400 053
Administrative Block, GCPTL, Village
Lakhigam, P.O Dahej, Taluka- Vagra,
Bharuch- 392 130
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
U67200MH2006PLC165651
U01100MH1999PLC120563
Subsidiary
99.95
2(87)(ii)
U51909MH2006PLC166166
Subsidiary
94.63
2(87)(ii)
U25209GJ2012PTC068867
Subsidiary
74.90
2(87)(ii)
U74999MH2007PLC167704
Subsidiary
100.00
2(87)(ii)
U65990MH1999PLC120918
Subsidiary
100.00
2(87)(ii)
U51100MH2005PLC190767
Subsidiary
100.00
2(87)(ii)
U51100MH2005PTC302789
Subsidiary
100.00
2(87)(ii)
U51109MH2007PLC307506
Subsidiary
100.00
2(87)(ii)
U24120MH1999PLC121009
Subsidiary
100.00
2(87)(ii)
U51100GJ1994PTC021590
Subsidiary
100.00
2(87)(ii)
U45400HR2007PLC037102
Subsidiary
100.00
2(87)(ii)
-
-
-
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
Subsidiary
100.00
2(87)(ii)
U51909MH2006PTC163182
Subsidiary
100.00
2(87)(ii)
U65990MH1986PTC041221
Subsidiary
100.00
2(87)(ii)
U01119MH2006PTC162904
Subsidiary
100.00
2(87)(ii)
L99999MH1994PLC082802
Associate
24.92
U99999GJ1992PLC017798
Associate
41.80
U74900HR1989GOI030516
Associate
33.33
-
Associate
50.00
L60300MH1988PLC049019
Associate
45.43
2(6)
2(6)
2(6)
2(6)
2(6)
Integrated Annual Report 2017–18Board’s Report 256
Attachment C
IV.
Shareholding Pattern (Equity Share Capital breakup as percentage of total Equity)
Category-wise Shareholding
i)
Category of Shareholders
No. of Shares held at the beginning of the year (As on 01-04-2017)
No. of Shares held at the end of the year (As on 31-03-2018)
Demat
Physical
Total
% of total shares
Demat
Physical
Total
% of total shares
% of change
during the year
Sr. No.
A
1)
a)
b)
c)
d)
e)
f)
Promoters
Indian
Individual / HUF
Central Government
State Government(s)
Bodies Corporate
Banks / FI
Any other
2,11,72,646
0
0
1,32,14,57,425
0
f-i)
Petroleum Trust (through Trustees
12,04,71,003
for sole beneficiary - Reliance
Industrial Investments and
1,46,31,01,074
0
0
0
0
0
1,46,31,01,074
Holdings Limited)
Sub - Total (A) (1)
Foreign
NRIs – Individuals
Other – Individuals
Bodies Corporate
Banks / FI
Any other
Sub - Total (A) (2)
Total Shareholding of
Promoter(A) = (A)(1) + (A)(2)
Public Shareholding
Institutions
Mutual Funds
Alternate Investment Funds
Banks / FI
Central Government
State Government(s)
Venture Capital Funds
Insurance Companies
FIIs
Foreign Venture Capital Funds
2)
a)
b)
c)
d)
e)
B
1
a)
b)
c)
d)
e)
f)
g)
h)
i)
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
40.64
0.00
4,23,45,292
0
0
2,64,29,14,850
0
12,04,71,003
3.71
24,09,42,006
1,46,31,01,074
45.00
2,92,62,02,148
0
0
0
0
0.00
0.00
0.00
0.00
0
0
0
0
0
1,46,31,01,074
0.00
45.00
0
2,92,62,02,148
0
0
0
0
0
0
0
0
0
0
0
0
0
4,23,45,292
0
0
2,64,29,14,850
0
24,09,42,006
0.67
0.00
0.00
41.72
0.00
3.80
2,92,62,02,148
46.19
0
0
0
0
0
2,92,62,02,148
8,84,59,582
3,58,083
8,88,17,665
6,700
19,84,615
27,60,802
92,872
0
28,27,68,342
7,96,60,602
0
0
2,04,797
14,78,829
2,072
0
5,848
2,29,507
0
6,700
21,89,412
42,39,631
94,944
0
28,27,74,190
7,98,90,109
0
2.73
0.00
0.07
0.13
0.00
0.00
8.70
2.46
0.00
17,19,89,639
2,67,938
17,22,57,577
11,400
44,16,699
59,31,914
1,85,544
0
51,50,77,149
71,43,246
0
0
3,58,133
29,57,538
4,144
0
6,100
1,51,566
0
11,400
47,74,832
88,89,452
1,89,688
0
51,50,83,249
72,94,812
0
0.02
0.00
0.00
1.08
0.00
0.10
1.19
0.00
0.00
0.00
0.00
0.00
1.19
(0.01)
0.00
0.01
0.01
0.00
0.00
(0.57)
(2.34)
0.00
0.00
0.00
0.00
0.00
0.00
46.19
2.72
0.00
0.08
0.14
0.00
0.00
8.13
0.12
0.00
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
Sr. No.
Category of Shareholders
No. of Shares held at the beginning of the year (As on 01-04-2017)
No. of Shares held at the end of the year (As on 31-03-2018)
Demat
Physical
Total
% of total shares
Demat
Physical
Total
% of total shares
% of change
during the year
257
j)
j-i)
j-ii)
j-iii)
2
a)
i)
ii)
b)
i)
ii)
c)
c-i)
c-ii)
c-iii)
c-iv)
c-v)
c-vi)
Others
Qualified Foreign Investor
Foreign Portfolio Investors
UTI
Sub - Total (B) (1)
Non-Institutions
Bodies Corporate
Indian
Overseas
Individuals
Individual shareholders holding
nominal share capital up to ` 1 lakh
Individual shareholders holding
nominal share capital in excess
of ` 1 lakh
Others
0
63,34,83,999
0
1,08,92,17,514
0
0
3,01,598
25,80,734
0
63,34,83,999
3,01,598
1,09,17,98,248
8,41,00,888
1,81,988
12,87,756
36,186
8,53,88,644
2,18,174
21,77,37,432
5,62,33,957
27,39,71,389
3,05,63,717
3,73,432
3,09,37,149
Qualified Foreign Investor
0
0
0
1,31,97,690
41,39,325
1,73,37,015
NRIs
Foreign Portfolio Investors
Foreign Nationals
Clearing Member
Shares held by Subsidiary
Companies on which no voting
rights are exercisable
c-vii)
Unclaimed Shares Suspense
59,73,988
Account- Regulation 39 of
SEBI (Listing Obligations and
Disclosure Requirements)
Regulations, 2015)1
Investor Education and Protection
Fund (IEPF) Authority2
Trusts
HUF
Sub - Total (B) (2)
Total Public Shareholding (B) =
(B)(1) + (B)(2)
c-viii)
c-ix)
c-x)
0
79,22,180
50,53,226
54,18,47,422
1,63,10,64,936
0
0
0
0
0
0
421
8,756
52,24,316
17,18,82,820
421
8,756
52,24,316
17,18,82,820
1,011
13,220
51,77,424
17,18,82,820
59,73,988
0.18
87,93,682
0
0.00
2,99,52,968
20,433
27,921
79,42,613
50,81,147
6,21,19,010
6,46,99,744
60,39,66,432
1,69,57,64,680
0.24
0.16
18.58
52.16
1,97,34,988
1,00,51,847
94,03,80,052
3,14,61,62,032
14,600
47,666
9,06,32,848
9,49,66,840
0
1,50,10,26,389
0
0
0
1,50,10,26,389
0
5,88,573
5,88,573
2,20,57,81,980
43,33,992
2,21,01,15,972
16,34,85,972
3,63,976
12,34,566
70,574
16,47,20,538
4,34,550
40,42,75,999
8,17,76,837
48,60,52,836
9,97,71,184
9,03,362
10,06,74,546
0
0
0
2,68,74,961
65,85,243
3,34,60,204
0.00
19.48
0.01
33.58
2.63
0.01
8.43
0.95
0.00
0.53
0.00
0.00
0.16
5.29
0
0
0
0
0
0
1,011
13,220
51,77,424
17,18,82,820
87,93,682
2,99,52,968
1,97,49,588
1,00,99,513
1,03,10,12,900
3,24,11,28,872
0.00
23.70
0.01
34.89
2.60
0.01
7.67
1.59
0.00
0.53
0.00
0.00
0.08
2.71
0.14
0.47
0.31
0.16
16.28
51.17
2.64
0.00
4.21
0.00
1.31
(0.03)
0.00
(0.75)
0.64
0.00
(0.01)
0.00
0.00
(0.08)
(2.57)
(0.04)
0.47
0.07
0.00
(2.30)
(0.99)
(0.20)
0.00
C.
Shares held by Custodian for
9,23,94,646
17,700
9,24,12,346
2.84
16,73,01,102
18,900
16,73,20,002
GDRs & ADRs
Grand Total (A+B+C)
3,18,65,60,656
6,47,17,444
3,25,12,78,100
100.00
6,23,96,65,282
9,49,85,740
6,33,46,51,022
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 The voting rights on these shares shall remain frozen till the rightful owner claims the shares [Refer to Section 124 of the Companies Act, 2013].
Integrated Annual Report 2017–18Board’s Report 258
Attachment D
IV. Shareholding Pattern (Equity Share Capital breakup as percentage of total Equity)
ii)
Shareholding of Promoters
Sr. No.
Shareholder’s Name
Shareholding at the beginning of the year
(As on 01-04-2017)
Shareholding at the end of the year
(As on 31-03-2018)
No. of Shares % of total Shares
% of Shares
No. of Shares % of total Shares of
%of Shares
% change in
of the Company
Pledged /
the Company
Pledged /
shareholding during
encumbered
to total
shares*
encumbered
the year
to total
shares *
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
Devarshi Commercials LLP
Srichakra Commercials LLP
Karuna Commercials LLP
Tattvam Enterprises LLP
35,54,00,205
34,44,47,637
25,40,83,498
21,57,15,804
Reliance Industries Holding Private
12,87,68,863
Limited
Petroleum Trust (through Trustees
for sole beneficiary - Reliance
Industrial Investments and
12,04,71,003
Holdings Limited)
K. D. Ambani
Shreeji Comtrade LLP
Shrikrishna Tradecom LLP
Svar Enterprises LLP
M. D. Ambani
Nita M. Ambani
Isha M. Ambani
Akash M. Ambani
Reliance Welfare Association
Vasuprada Enterprises LLP
Reliance Industrial Infrastructure
Limited
Anant M. Ambani
Exotic Officeinfra Private Limited
Carat Holdings and Trading Co
Private Limited
Neutron Enterprises Private
Limited
Futura Commercials Private
Limited
Kankhal Trading LLP
Bhuvanesh Enterprises LLP
Ajitesh Enterprises LLP
Badri Commercials LLP
Abhayaprada Enterprises LLP
Trilokesh Commercials LLP
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
10.93
10.59
7.81
6.63
3.96
3.71
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
71,08,00,410
68,88,95,274
50,81,66,996
43,14,31,608
25,75,37,726
0.00
24,09,42,006
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,46,62,148
1,33,55,000
1,33,55,000
1,27,40,032
72,31,692
67,96,292
67,28,780
67,26,380
50,10,936
12,33,680
3,44,000
2,00,000
25,776
10,200
1,722
1,690
200
200
200
200
200
200
11.22
10.88
8.02
6.81
4.07
3.80
0.23
0.21
0.21
0.20
0.11
0.11
0.11
0.11
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
0.29
0.28
0.21
0.18
0.10
0.10
0.01
0.01
0.01
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
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
259
Sr. No.
Shareholder’s Name
Shareholding at the beginning of the year
(As on 01-04-2017)
Shareholding at the end of the year
(As on 31-03-2018)
No. of Shares % of total Shares
% of Shares
No. of Shares % of total Shares of
%of Shares
% change in
of the Company
Pledged /
the Company
Pledged /
shareholding during
encumbered
to total
shares*
encumbered
the year
to total
shares *
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
Taran Enterprises LLP
Pitambar Enterprises LLP
Adisesh Enterprises LLP
Rishikesh Enterprises LLP
Pavana Enterprises LLP
Kamalakar Enterprises LLP
Narahari Enterprises LLP
Chakradev Enterprises LLP
Chakradhar Commercials LLP
Chakresh Enterprises LLP
Chhatrabhuj Enterprises LLP
Harinarayan Enterprises LLP
Janardan Commercials LLP
Samarjit Enterprises LLP
Shripal Enterprises LLP
Synergy Synthetics Private Limited
Vishatan Enterprises LLP
Elakshi Commercials Private
Limited
Pinakin Commercials Private
Limited
Anuprabha Commercials Private
Limited
Manuvidya Commercials Private
Limited
Nirahankara Commercials Private
Limited
Vandhya Commercials Private
Limited
Reliance Life Sciences Private
Limited
Sikka Ports & Terminals
Limited(Previously known as
Reliance Ports and Terminals
Limited)
Reliance Utilities and Power Private
Limited
Reliance Utilities Private Limited
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
50
50
50
50
50
50
0
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
100
100
0
0
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
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Total
1,46,31,01,074
45.00
0.00 2,92,62,02,148
46.19
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.19
(*) 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 above 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, 2018.
Integrated Annual Report 2017–18Board’s Report 260
Attachment E
IV. Shareholding Pattern (Equity Share Capital Breakup as Percentage of Total Equity)
iii) Change in Promoters’ Shareholding
Particulars
Shareholding at the beginning of the year
Cumulative Shareholding during the year
(As on 01-04-2017)
(01-04-2017 to 31-03-2018)
No. of shares % of total shares of
No. of shares % of total shares of
the Company
the Company
At the beginning of the year
1,46,31,01,074
45.00
Date wise Increase / Decrease in Promoters Shareholding during the year
specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus
Note-I
/ sweat equity, etc.)
At the end of the year
2,92,62,02,148
46.19
Note: 1. The change in no. of shares between 01-04-2017 and 31-03-2018 is on account of allotment of bonus equity shares in the ratio of 1:1.
2.
The change in % of total shares of the Company between 01-04-2017 and 31-03-2018 is on account of (i) allotment of bonus equity shares in the ratio of
1:1 and (ii) allotment of shares under Employees’ Stock Option Scheme.
Note-I Details of Increase and Decrease in Promoters’ Shareholding
Sr. No.
Date of Debit / Credit
Name
Increase / Decrease
Shareholding
No. of shares at
% of total shares of the
Company
in shareholding
Reason
Cumulative Shareholding during the year
(01-04-17 to 31-03-18)
No. of shares
% of total shares of the
Company
1
Nirahankara Commercials
Private Limited
2
Vandhya Commercials
Private Limited
3
Anuprabha Commercials
Private Limited
4
Manuvidya Commercials
Private Limited
the beginning
(01-04-17) /
end of the year
(31-03-18)
50
0
50
0
50
0
50
0
0.00
1-Apr-2017
21-Sep-2017
27-Dec-2017
50
Bonus Allotment
(100)
Transfer (Inter se transfer)
0.00
31-Mar-2018
0
0.00
1-Apr-2017
21-Sep-2017
27-Dec-2017
50
Bonus Allotment
(100)
Transfer (Inter se transfer)
0.00
31-Mar-2018
0
0.00
1-Apr-2017
21-Sep-2017
27-Dec-2017
50
Bonus Allotment
(100)
Transfer (Inter se transfer)
0.00
31-Mar-2018
0
0.00
1-Apr-2017
21-Sep-2017
27-Dec-2017
50
Bonus Allotment
(100)
Transfer (Inter se transfer)
0.00
31-Mar-2018
0
5
Exotic Officeinfra Private
12,688
0.00
1-Apr-2017
Limited
21-Sep-2017
27-Dec-2017
12688
Bonus Allotment
400
Transfer (Inter se transfer)
25,776
0.00
31-Mar-2018
0
100
0
0
100
0
0
100
0
0
100
0
0
25,376
25,776
25,776
0.00
0.00
0.00
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 • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
261
Attachment F
IV. Shareholding 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
Sr.
No.
Shareholding
Date of
Debit / Credit
Increase/
Decrease
in shareholding
Reason Cumulative Shareholding during
the year
(01-04-17 to 31-03-18)
No.of Shares
% of total
shares of the
Company
No. of Shares at
the beginning
(01-04-17) / end
of the year
(31-03-18)
26,26,13,009
% of total
shares of the
Company
8.08
1
Life Insurance Corporation of India
2
Europacific Growth Fund
48,29,64,286
9,68,39,631
7.62
2.98
20,91,06,942
3.30
1-Apr-2017
5-Apr-2017
7-Apr-2017
11-Apr-2017
14-Apr-2017
18-Apr-2017
21-Apr-2017
25-Apr-2017
28-Apr-2017
2-May-2017
12-May-2017
16-May-2017
19-May-2017
22-May-2017
23-May-2017
24-May-2017
1-Jun-2017
21-Sep-2017
17-Nov-2017
24-Nov-2017
1-Dec-2017
8-Dec-2017
15-Dec-2017
22-Dec-2017
29-Dec-2017
5-Jan-2018
12-Jan-2018
19-Jan-2018
26-Jan-2018
2-Feb-2018
9-Feb-2018
23-Mar-2018
31-Mar-2018
1-Apr-2017
5-May-2017
9-May-2017
12-May-2017
16-Jun-2017
23-Jun-2017
30-Jun-2017
7-Jul-2017
14-Jul-2017
18-Aug-2017
25-Aug-2017
1-Sep-2017
8-Sep-2017
21-Sep-2017
6-Oct-2017
13-Oct-2017
31-Mar-2018
(19,22,040)
(10,05,250)
(5,88,059)
(1,79,757)
(4,00,000)
(31,816)
(3,00,000)
(5,82,962)
(2,41,499)
(1,31,263)
(2,87,559)
(9,22,261)
(52,000)
(25,000)
(1,59,972)
(3,028)
25,57,80,543
(5,45,107)
(21,88,814)
(21,00,384)
(20,46,898)
(24,41,332)
(23,68,000)
(18,39,000)
(17,77,388)
(23,30,791)
(21,30,975)
(17,77,500)
(17,05,460)
90,196
(16,63,000)
(37,72,347)
(4,05,873)
(1,44,427)
(2,17,700)
32,70,251
23,28,676
2,72,3722
6,99,396
5,86,795
(15,68,686)
(4,89,919)
(11,03,395)
(7,00,000)
10,18,18,471
36,66,389
18,03,611
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Bonus
Allotment
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
Bonus
Allotment
Transfer
Transfer
26,06,90,969
25,96,85,719
25,90,97,660
25,89,17,903
25,85,17,903
25,84,86,087
25,81,86,087
25,76,03,125
25,73,61,626
25,72,30,363
25,69,42,804
25,60,20,543
25,59,68,543
25,59,43,543
25,57,83,571
25,57,80,543
51,15,61,086
51,10,15,979
50,88,27,165
50,67,26,781
50,46,79,883
50,22,38,551
49,98,70,551
49,80,31,551
49,62,54,163
49,39,23,372
49,17,92,397
49,00,14,897
48,83,09,437
48,83,99,633
48,67,36,633
48,29,64,286
9,64,33,758
9,62,89,331
9,60,71,631
9,93,41,882
10,16,70,558
10,43,94,280
10,50,93,676
10,56,80,471
10,41,11,785
10,36,21,866
10,25,18,471
10,18,18,471
20,36,36,942
20,73,03,331
20,91,06,942
20,91,06,942
8.02
7.99
7.97
7.96
7.95
7.95
7.94
7.92
7.92
7.91
7.90
7.87
7.87
7.87
7.87
7.87
8.08
8.07
8.03
8.00
7.97
7.93
7.89
7.86
7.84
7.80
7.76
7.74
7.71
7.71
7.68
7.62
2.97
2.96
2.95
3.06
3.13
3.21
3.23
3.25
3.20
3.19
3.15
3.13
3.22
3.27
3.30
3.30
Integrated Annual Report 2017–18Board’s Report
262
Name
Sr.
No.
Shareholding
Date of
Debit / Credit
Increase/
Decrease
in shareholding
No. of Shares at
the beginning
(01-04-17) / end
of the year
(31-03-18)
3,05,42,579
% of total
shares of the
Company
0.94
3
Government of Singapore
6,84,79,636
1.08
Reason Cumulative Shareholding during
the year
(01-04-17 to 31-03-18)
No.of Shares
% of total
shares of the
Company
1-Apr-2017
5-Apr-2017
7-Apr-2017
11-Apr-2017
14-Apr-2017
21-Apr-2017
28-Apr-2017
2-May-2017
5-May-2017
9-May-2017
12-May-2017
19-May-2017
22-May-2017
24-May-2017
25-May-2017
26-May-2017
29-May-2017
1-Jun-2017
2-Jun-2017
5-Jun-2017
7-Jun-2017
8-Jun-2017
9-Jun-2017
23-Jun-2017
30-Jun-2017
7-Jul-2017
21-Jul-2017
28-Jul-2017
18-Aug-2017
25-Aug-2017
1-Sep-2017
8-Sep-2017
21-Sep-2017
21-Sep-2017
29-Sep-2017
6-Oct-2017
20-Oct-2017
27-Oct-2017
31-Oct-2017
3-Nov-2017
10-Nov-2017
17-Nov-2017
1-Dec-2017
8-Dec-2017
15-Dec-2017
22-Dec-2017
29-Dec-2017
5-Jan-2018
12-Jan-2018
19-Jan-2018
26-Jan-2018
2-Feb-2018
9-Feb-2018
16-Feb-2018
2-Mar-2018
9-Mar-2018
16-Mar-2018
23-Mar-2018
31-Mar-2018
(61,278)
(3,03,801)
(6,04,564)
(8,42,146)
(13,670)
(6,021)
(2,04,111)
(1,19,116)
(2,80,245)
(1,17,087)
(48,476)
(24,962)
(16,034)
(8,274)
(1,61,695)
(3,18,305)
1,83,979
(44,644)
(91,877)
62,441
(60,264)
(1,36,506)
(14,462)
(1,26,364)
1,58,474
1,08,921
11,37,501
1,15,531
46,743
(3,61,343)
(9,16,787)
3,46,072
2,74,74,137
5,64,730
3,80,944
7,962
1,43,533
42,686
31,2276
(2,12,173)
(4,59,926)
(11,47,087)
16,45,090
4,18,459
2,38,365
80,853
10,28,869
3,70,395
7,48,045
21,31,211
2,05,904
1,49,767
7,26,156
(7,319)
(6,72,158)
19,26,372
(50)
45,62,386
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
Bonus
Allotment
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
3,04,81,301
3,01,77,500
2,95,72,936
2,87,30,790
2,87,17,120
2,87,11,099
2,85,06,988
2,83,87,872
2,81,07,627
2,79,90,540
2,79,42,064
2,79,17,102
2,79,01,068
2,78,92,794
2,77,31,099
2,74,12,794
2,75,96,773
2,75,52,129
2,74,60,252
2,75,22,693
2,74,62,429
2,73,25,923
2,73,11,461
2,71,85,097
2,73,43,571
2,74,52,492
2,85,89,993
2,87,05,524
2,87,52,267
2,83,90,924
2,74,74,137
2,78,20,209
5,52,94,346
5,58,59,076
5,62,40,020
5,62,47,982
5,63,91,515
5,64,34,201
5,67,46,477
5,65,34,304
5,60,74,378
5,49,27,291
5,65,72,381
5,69,90,840
5,72,29,205
5,73,10,058
5,83,38,927
5,87,09,322
5,94,57,367
6,15,88,578
6,17,94,482
6,19,44,249
6,26,70,405
6,26,63,086
6,19,90,928
6,39,17,300
6,39,17,250
6,84,79,636
0.94
0.93
0.91
0.88
0.88
0.88
0.88
0.87
0.86
0.86
0.86
0.86
0.86
0.86
0.85
0.84
0.85
0.85
0.84
0.85
0.84
0.84
0.84
0.84
0.84
0.84
0.88
0.88
0.88
0.87
0.84
0.86
0.87
0.88
0.89
0.89
0.89
0.89
0.90
0.89
0.89
0.87
0.89
0.90
0.90
0.90
0.92
0.93
0.94
0.97
0.98
0.98
0.99
0.99
0.98
1.01
1.01
1.08
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
263
Reason Cumulative Shareholding during
the year
(01-04-17 to 31-03-18)
No.of Shares
% of total
shares of the
Company
Name
Sr.
No.
Shareholding
Date of
Debit / Credit
Increase/
Decrease
in shareholding
% of total
shares of the
Company
4
Reliance Chemicals Limited
5
Reliance Polyolefins Limited
No. of Shares at
the beginning
(01-04-17) / end
of the year
(31-03-18)
6,22,39,998
6,22,39,998
6,11,94,924
6,11,94,924
1.91
0.98
1.88
0.97
1-Apr-2017
31-Mar-2018
1-Apr-2017
31-Mar-2018
0
0
Nil
movement
during the
year
Nil
movement
during the
year
6,22,39,998
0.98
6,11,94,924
0.97
6
Vanguard Emerging Markets Stock
Index Fund, A Series of Vanguard
International Equity Index Funds
2,51,61,246
0.77
1-Apr-2017
7-Apr-2017
28-Apr-2017
5-May-2017
12-May-2017
16-May-2017
19-May-2017
30-May-2017
2-Jun-2017
6-Jun-2017
30-Jun-2017
7-Jul-2017
14-Jul-2017
21-Jul-2017
28-Jul-2017
4-Aug-2017
11-Aug-2017
25-Aug-2017
1-Sep-2017
8-Sep-2017
15-Sep-2017
21-Sep-2017
21-Sep-2017
6-Oct-2017
13-Oct-2017
20-Oct-2017
27-Oct-2017
15-Dec-2017
22-Dec-2017
26-Jan-2018
2-Feb-2018
23-Mar-2018
31-Mar-2018
1-Apr-2017
11-Apr-2017
23-Jun-2017
30-Jun-2017
7-Jul-2017
14-Jul-2017
21-Jul-2017
15-Sep-2017
21-Sep-2017
3-Nov-2017
10-Nov-2017
31-Mar-2018
3,07,162
28,180
2,25,440
70,450
33,816
1,18,356
26,874
61,996
64,835
2,41,227
98,630
1,64,921
92,111
63,460
61,996
81,722
3,60,380
1,56,527
1,45,146
1,30,916
(6,16,891)
2,75,64,475
1,71,540
1,77,258
1,31,514
1,20,078
(3,33,541)
(24,58,761)
2,54,552
2,27,472
(14,41,976)
(2,50,350)
22,25,000
7,31,820
22,30,980
5,72,910
13,31,290
25,18,000
23,30,000
2,23,40,000
23,65,571
10,84,429
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Bonus
Allotment
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Bonus
Allotment
Transfer
Transfer
2,54,68,408
2,54,96,588
2,57,22,028
2,57,92,478
2,58,26,294
2,59,44,650
2,59,71,524
2,60,33,520
2,60,98,355
2,63,39,582
2,64,38,212
2,66,03,133
2,66,95,244
2,67,58,704
2,68,20,700
2,69,02,422
2,72,62,802
2,74,19,329
2,75,64,475
2,76,95,391
2,70,78,500
5,46,42,975
5,48,14,515
5,49,91,773
5,51,23,287
5,52,43,365
5,49,09,824
5,24,51,063
5,27,05,615
5,29,33,087
5,14,91,111
5,12,40,761
1,49,55,000
1,56,86,820
1,79,17,800
1,84,90,710
1,98,22,000
2,23,40,000
2,46,70,000
4,70,10,000
4,93,75,571
5,04,60,000
5,04,60,000
0.78
0.78
0.79
0.79
0.79
0.80
0.80
0.80
0.80
0.81
0.81
0.82
0.82
0.82
0.82
0.83
0.84
0.84
0.85
0.85
0.83
0.86
0.87
0.87
0.87
0.87
0.87
0.83
0.83
0.84
0.81
0.81
0.46
0.48
0.55
0.57
0.61
0.69
0.76
0.74
0.78
0.80
0.80
7
New Perspective Fund *
5,12,40,761
1,27,30,000
0.81
0.39
5,04,60,000
0.80
Integrated Annual Report 2017–18Board’s Report
264
Name
Sr.
No.
Shareholding
Date of
Debit / Credit
Increase/
Decrease
in shareholding
No. of Shares at
the beginning
(01-04-17) / end
of the year
(31-03-18)
1,76,30,106
% of total
shares of the
Company
0.54
8
New World Fund Inc *
9
SBI Mutual Funds *
4,77,51,028
1,83,40,739
0.75
0.56
Reason Cumulative Shareholding during
the year
(01-04-17 to 31-03-18)
No.of Shares
% of total
shares of the
Company
1-Apr-2017
28-Apr-2017
2-May-2017
5-May-2017
9-May-2017
12-May-2017
30-May-2017
31-May-2017
1-Jun-2017
2-Jun-2017
16-Jun-2017
23-Jun-2017
4-Aug-2017
11-Aug-2017
15-Sep-2017
21-Sep-2017
31-Mar-2018
1-Apr-2017
5-Apr-2017
7-Apr-2017
11-Apr-2017
14-Apr-2017
18-Apr-2017
21-Apr-2017
25-Apr-2017
28-Apr-2017
2-May-2017
5-May-2017
9-May-2017
12-May-2017
16-May-2017
19-May-2017
22-May-2017
23-May-2017
24-May-2017
25-May-2017
26-May-2017
29-May-2017
30-May-2017
31-May-2017
1-Jun-2017
2-Jun-2017
5-Jun-2017
6-Jun-2017
7-Jun-2017
8-Jun-2017
9-Jun-2017
12-Jun-2017
13-Jun-2017
14-Jun-2017
15-Jun-2017
16-Jun-2017
23-Jun-2017
30-Jun-2017
7-Jul-2017
14-Jul-2017
21-Jul-2017
(6,37,571)
(57,635)
(5,58,286)
(1,52,157)
(2,29,351)
12,56,865
15,54,145
4,98,680
704
12,77,971
5,07,043
14,76,716
5,23,284
15,70,000
2,30,90,514
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Bonus
Allotment
7,07,220
(1,77,748)
88,730
86,977
87,068
80,217
(1,50,717)
3,207
16,393
73,450
73,454
6,11,564
36,939
59,833
16,979
16,927
16,794
23,705
(13,220)
3,504
18,196
(2,43,409)
(11,616)
27,173
20,908
19,443
(3,38,928)
20,151
23,413
18,955
20,388
27,400
7,671
26,898
(1,96,732)
93,723
1,40,001
6,31,033
62,482
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
1,69,92,535
1,69,34,900
1,63,76,614
1,62,24,457
1,59,95,106
1,72,51,971
1,88,06,116
1,93,04,796
1,93,05,500
2,05,83,471
2,10,90,514
2,25,67,230
2,30,90,514
2,46,60,514
4,77,51,028
4,77,51,028
1,90,47,959
1,88,70,211
1,89,58,941
1,90,45,918
1,91,32,986
1,92,13,203
1,90,62,486
1,90,65,693
1,90,82,086
1,91,55,536
1,92,28,990
1,98,40,554
1,98,77,493
1,99,37,326
1,99,54,305
1,99,71,232
1,99,88,026
2,00,11,731
1,99,98,511
2,00,02,015
2,00,20,211
1,97,76,802
1,97,65,186
1,97,92,359
1,98,13,267
1,98,32,710
1,94,93,782
1,95,13,933
1,95,37,346
1,95,56,301
1,95,76,689
1,96,04,089
1,96,11,760
1,96,38,658
1,94,41,926
1,95,35,649
1,96,75,650
2,03,06,683
2,03,69,165
0.52
0.52
0.50
0.50
0.49
0.53
0.58
0.59
0.59
0.63
0.65
0.69
0.71
0.76
0.75
0.75
0.59
0.58
0.58
0.59
0.59
0.59
0.59
0.59
0.59
0.59
0.59
0.61
0.61
0.61
0.61
0.61
0.61
0.62
0.62
0.62
0.62
0.61
0.61
0.61
0.61
0.61
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.61
0.62
0.63
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
Name
Sr.
No.
Shareholding
Date of
Debit / Credit
Increase/
Decrease
in shareholding
% of total
shares of the
Company
No. of Shares at
the beginning
(01-04-17) / end
of the year
(31-03-18)
265
Reason Cumulative Shareholding during
the year
(01-04-17 to 31-03-18)
No.of Shares
% of total
shares of the
Company
28-Jul-2017
4-Aug-2017
11-Aug-2017
18-Aug-2017
25-Aug-2017
1-Sep-2017
8-Sep-2017
15-Sep-2017
21-Sep-2017
21-Sep-2017
22-Sep-2017
29-Sep-2017
6-Oct-2017
13-Oct-2017
20-Oct-2017
27-Oct-2017
31-Oct-2017
3-Nov-2017
10-Nov-2017
17-Nov-2017
24-Nov-2017
1-Dec-2017
8-Dec-2017
15-Dec-2017
22-Dec-2017
29-Dec-2017
5-Jan-2018
12-Jan-2018
19-Jan-2018
26-Jan-2018
2-Feb-2018
9-Feb-2018
16-Feb-2018
23-Feb-2018
2-Mar-2018
9-Mar-2018
16-Mar-2018
23-Mar-2018
31-Mar-2018
1-Apr-2017
5-Apr-2017
7-Apr-2017
11-Apr-2017
18-Apr-2017
21-Apr-2017
25-Apr-2017
5-May-2017
19-May-2017
22-May-2017
5-Jun-2017
13-Jun-2017
15-Jun-2017
16-Jun-2017
23-Jun-2017
30-Jun-2017
14-Jul-2017
(11,99,106)
1,79,793
1,72,475
1,72,273
55,480
1,62,272
(53,923)
(2,43,013)
2,03,999
1,98,58,429
71,940
1,23,316
2,50,801
4,97,826
(62,911)
3,69,063
77,300
91,209
1,49,692
(1,77,322)
(55,225)
(1,81,274)
8,35,920
11,04,607
(25,869)
2,29,902
14,60,718
2,82,842
(85,092)
(6,77,649)
(6,18,129)
(13,12,325)
(15,29,136)
(67,339)
(97,519)
5,88,881
2,51,788
9,02,086
6,55,579
63,118
90,611
174
61,409
46,371
27,085
60,976
55,771
25,429
(39,565)
45,827
66,887
51,834
1,12,602
94,419
82,177
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Bonus
Allotment
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
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Transfer
Transfer
Transfer
Transfer
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Transfer
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Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
1,91,70,059
1,93,49,852
1,95,22,327
1,96,94,600
1,97,50,080
1,99,12,352
1,98,58,429
1,96,15,416
1,98,19,415
3,96,77,844
3,97,49,784
3,98,73,100
4,01,23,901
4,06,21,727
4,05,58,816
4,09,27,879
4,10,05,179
4,10,96,388
4,12,46,080
4,10,68,758
4,10,13,533
4,08,32,259
4,16,68,179
4,27,72,786
4,27,46,917
4,29,76,819
4,44,37,537
4,47,20,379
4,46,35,287
4,39,57,638
4,33,39,509
4,20,27,184
4,04,98,048
4,04,30,709
4,03,33,190
4,09,22,071
4,11,73,859
4,20,75,945
4,27,31,524
1,92,65,426
1,93,56,037
1,93,56,211
1,94,17,620
1,94,63,991
1,94,91,076
1,95,52,052
1,96,07,823
1,96,33,252
1,95,93,687
1,96,39,514
1,97,06,401
1,97,58,235
1,98,70,837
1,99,65,256
2,00,47,433
0.59
0.60
0.60
0.61
0.61
0.61
0.61
0.60
0.61
0.63
0.63
0.63
0.63
0.64
0.64
0.65
0.65
0.65
0.65
0.65
0.65
0.64
0.66
0.68
0.67
0.68
0.70
0.71
0.70
0.69
0.68
0.66
0.64
0.64
0.64
0.65
0.65
0.66
0.67
0.59
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.61
0.61
0.61
0.61
0.62
10
Vanguard Total International Stock
Index Fund *
4,27,31,524
1,92,02,308
0.67
0.59
Integrated Annual Report 2017–18Board’s Report
266
Name
Sr.
No.
Shareholding
Date of
Debit / Credit
Increase/
Decrease
in shareholding
% of total
shares of the
Company
No. of Shares at
the beginning
(01-04-17) / end
of the year
(31-03-18)
Reason Cumulative Shareholding during
the year
(01-04-17 to 31-03-18)
No.of Shares
% of total
shares of the
Company
21-Jul-2017
4-Aug-2017
11-Aug-2017
18-Aug-2017
25-Aug-2017
1-Sep-2017
8-Sep-2017
21-Sep-2017
21-Sep-2017
29-Sep-2017
6-Oct-2017
13-Oct-2017
27-Oct-2017
3-Nov-2017
10-Nov-2017
17-Nov-2017
24-Nov-2017
8-Dec-2017
15-Dec-2017
22-Dec-2017
29-Dec-2017
26-Jan-2018
2-Feb-2018
9-Feb-2018
16-Feb-2018
23-Feb-2018
2-Mar-2018
9-Mar-2018
16-Mar-2018
23-Mar-2018
31-Mar-2018
1-Apr-2017
5-Apr-2017
7-Apr-2017
11-Apr-2017
14-Apr-2017
18-Apr-2017
21-Apr-2017
25-Apr-2017
28-Apr-2017
5-May-2017
9-May-2017
12-May-2017
16-May-2017
19-May-2017
22-May-2017
23-May-2017
24-May-2017
25-May-2017
29-May-2017
30-May-2017
45,325
19,978
19,613
28,112
87,762
58,942
20,051
(2,63,406)
2,03,27,216
94,574
1,60,179
1,67,322
1,62,981
60,839
96,828
1,46,340
1,04,603
2,13,508
(93,730)
(9,30,965)
2,69,171
54,267
91,679
1,13,820
1,96,486
1,05,173
82,772
4,06,543
86,347
(2,92,985)
89,289
(1,32,163)
(2,08,340)
(66,328)
4,70,747
69,600
1,08,038
(562)
(56,006)
1,779
2,57,500
2,67,803
(12,854)
(129)
(445)
(118)
185
(759)
81,563
(1,510)
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Bonus
Allotment
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
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Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
2,00,92,758
2,01,12,736
2,01,32,349
2,01,60,461
2,02,48,223
20307165
2,03,27,216
2,00,63,810
4,03,91,026
4,04,85,600
4,06,45,779
4,08,13,101
4,09,76,082
4,10,36,921
4,11,33,749
4,12,80,089
4,13,84,692
4,15,98,200
4,15,04,470
4,05,73,505
4,08,42,676
4,08,96,943
4,09,88,622
4,11,02,442
4,12,98,928
4,14,04,101
4,14,86,873
4,18,93,416
4,19,79,763
4,16,86,778
4,17,76,067
2,51,68,043
2,49,59,703
2,48,93,375
2,53,64,122
2,54,33,722
2,55,41,760
2,55,41,198
2,54,85,192
2,54,86,971
2,57,44,471
2,60,12,274
2,59,99,420
2,59,99,291
2,59,98,846
2,59,98,728
2,59,98,913
2,59,98,154
2,60,79,717
2,60,78,207
0.62
0.62
0.62
0.62
0.62
0.62
0.63
0.62
0.64
0.64
0.64
0.64
0.65
0.65
0.65
0.65
0.65
0.66
0.66
0.64
0.64
0.65
0.65
0.65
0.65
0.65
0.65
0.66
0.66
0.66
0.66
0.77
0.77
0.77
0.78
0.78
0.79
0.79
0.78
0.78
0.79
0.80
0.80
0.80
0.80
0.80
0.80
0.80
0.80
0.80
11
HDFC Trustee Company Limited
A/C HDFC Mutual Funds#
4,17,76,067
2,53,00,206
0.66
0.78
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
Name
Sr.
No.
Shareholding
Date of
Debit / Credit
Increase/
Decrease
in shareholding
% of total
shares of the
Company
No. of Shares at
the beginning
(01-04-17) / end
of the year
(31-03-18)
267
Reason Cumulative Shareholding during
the year
(01-04-17 to 31-03-18)
No.of Shares
% of total
shares of the
Company
1-Jun-2017
5-Jun-2017
6-Jun-2017
7-Jun-2017
8-Jun-2017
9-Jun-2017
12-Jun-2017
13-Jun-2017
14-Jun-2017
15-Jun-2017
16-Jun-2017
23-Jun-2017
30-Jun-2017
7-Jul-2017
14-Jul-2017
21-Jul-2017
28-Jul-2017
4-Aug-2017
11-Aug-2017
18-Aug-2017
25-Aug-2017
1-Sep-2017
8-Sep-2017
15-Sep-2017
21-Sep-2017
21-Sep-2017
22-Sep-2017
29-Sep-2017
6-Oct-2017
13-Oct-2017
20-Oct-2017
27-Oct-2017
31-Oct-2017
3-Nov-2017
10-Nov-2017
17-Nov-2017
24-Nov-2017
1-Dec-2017
8-Dec-2017
15-Dec-2017
22-Dec-2017
29-Dec-2017
5-Jan-2018
12-Jan-2018
19-Jan-2018
26-Jan-2018
2-Feb-2018
9-Feb-2018
16-Feb-2018
23-Feb-2018
2-Mar-2018
9-Mar-2018
16-Mar-2018
23-Mar-2018
31-Mar-2018
1,373
774
(182)
(98,958)
(2,713)
(87)
(4,43,000)
(3,72,747)
(2,15,923)
(35,00,000)
(4,66,000)
(5,71,628)
(10,94,104)
(16,215)
(1,19,431)
(2,49,428)
(3,21,547)
(3,99,085)
49,398
(2,28,944)
1,956
53,298
(1,27,501)
(10,00,370)
46,497
1,79,57,513
(3,296)
1,94,370
2,08,557
(25,072)
(78,481)
(9,773)
568
(1,703)
(5,28,599)
(5,29,799)
787
172
(22,39,768)
(2,32,068)
(64,375)
(2,50,456)
(5,36,530)
2,676
298
2,20,536
(1,85,177)
1,60,951
(1,53,741)
2,49,356
11,155
6,652
22,03,123
25,94,063
12,59,621
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
Bonus
Allotment
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
2,60,79,580
2,60,80,354
2,60,80,172
2,59,81,214
2,59,78,501
2,59,78,414
2,55,35,414
2,51,62,667
2,49,46,744
2,14,46,744
2,09,80,744
2,04,09,116
1,93,15,012
1,92,98,797
1,91,79,366
1,89,29,938
1,86,08,391
1,82,09,306
1,82,58,704
1,80,29,760
1,80,31,716
1,80,85,014
1,79,57,513
1,69,57,143
1,70,03,640
3,49,61,153
3,49,57,857
3,51,52,227
3,53,60,784
3,53,35,712
3,52,57,231
3,52,47,458
3,52,48,026
3,52,46,323
3,47,17,724
3,41,87,925
3,41,88,712
3,41,88,884
3,19,49,116
3,17,17,048
3,16,52,673
3,14,02,217
3,08,65,687
3,08,68,363
3,08,68,661
3,10,89,197
3,09,04,020
3,10,64,971
3,09,11,230
3,11,60,586
3,11,71,741
3,11,78,393
3,33,81,516
3,59,75,579
3,72,35,200
0.80
0.80
0.80
0.80
0.80
0.80
0.79
0.77
0.77
0.66
0.65
0.63
0.59
0.59
0.59
0.58
0.57
0.56
0.56
0.55
0.55
0.56
0.55
0.52
0.52
0.55
0.55
0.56
0.56
0.56
0.56
0.56
0.56
0.56
0.55
0.54
0.54
0.54
0.50
0.50
0.50
0.50
0.49
0.49
0.49
0.49
0.49
0.49
0.49
0.49
0.49
0.49
0.53
0.57
0.59
3,72,35,200
0.59
Integrated Annual Report 2017–18Board’s Report
268
Name
Sr.
No.
12
Dimensional Emerging Markets
Value Fund#
Shareholding
Date of
Debit / Credit
Increase/
Decrease
in shareholding
No. of Shares at
the beginning
(01-04-17) / end
of the year
(31-03-18)
1,92,12,321
% of total
shares of the
Company
0.59
1-Apr-2017
Reason Cumulative Shareholding during
the year
(01-04-17 to 31-03-18)
No.of Shares
% of total
shares of the
Company
13
Abu Dhabi Investment Authority #
3,40,30,289
2,35,40,262
0.54
0.72
5-Apr-2017
7-Apr-2017
11-Apr-2017
14-Apr-2017
21-Apr-2017
28-Apr-2017
5-May-2017
9-May-2017
12-May-2017
16-May-2017
19-May-2017
22-May-2017
23-May-2017
24-May-2017
25-May-2017
26-May-2017
29-May-2017
1-Sep-2017
21-Sep-2017
22-Sep-2017
29-Sep-2017
6-Oct-2017
13-Oct-2017
16-Mar-2018
31-Mar-2018
1-Apr-2017
28-Apr-2017
19-May-2017
22-May-2017
23-May-2017
24-May-2017
25-May-2017
26-May-2017
29-May-2017
30-May-2017
31-May-2017
1-Jun-2017
2-Jun-2017
15-Jun-2017
16-Jun-2017
23-Jun-2017
30-Jun-2017
14-Jul-2017
21-Jul-2017
4-Aug-2017
11-Aug-2017
25-Aug-2017
8-Sep-2017
15-Sep-2017
21-Sep-2017
21-Sep-2017
22-Sep-2017
29-Sep-2017
6-Oct-2017
13-Oct-2017
(1,41,417)
(2,73,218)
(63,705)
(60,080)
(1,17,190)
(49,581)
(1,78,950)
(87,658)
(1,76,563)
(1,01,756)
(74,126)
(40,496)
(36,592)
(42,482)
(40,494)
(77,755)
(1,65,663)
(98,237)
1,73,86,358
(49,664)
(3,12,981)
(3,42,877)
(67,860)
30,955
6,737
(5,75,731)
(3,34,000)
(2,65,000)
(2,39,737)
(2,39,738)
(1,50,000)
(25,051)
(59,620)
(57,633)
(1,69,190)
7,023
(28,44,777)
3,169
(1,06,885)
(5,59,542)
(26,640)
4,638
73,990
6,245
4,294
49,840
16,280
(5,06,542)
1,80,42,654
7,80,432
(28,29,376)
9,50,124
2,68,000
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Bonus
Allotment
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
Bonus
Allotment
Transfer
Transfer
Transfer
Transfer
1,90,70,904
1,87,97,686
1,87,33,981
1,86,73,901
1,85,56,711
1,85,07,130
1,83,28,180
1,82,40,522
1,80,63,959
1,79,62,203
1,78,88,077
1,78,47,581
1,78,10,989
1,77,68,507
1,77,28,013
1,76,50,258
1,74,84,595
1,73,86,358
3,47,72,716
3,47,23,052
3,44,10,071
3,40,67,194
3,39,99,334
3,40,30,289
3,40,30,289
2,35,46,999
2,29,71,268
2,26,37,268
2,23,72,268
2,21,32,531
2,18,92,793
2,17,42,793
2,17,17,742
2,16,58,122
2,16,00,489
2,14,31,299
2,14,38,322
1,85,93,545
1,85,96,714
1,84,89,829
1,79,30,287
1,79,03,647
1,79,08,285
1,79,82,275
1,79,88,520
1,79,92,814
1,80,42,654
1,80,58,934
1,75,52,392
3,55,95,046
3,63,75,478
3,35,46,102
3,44,96,226
3,47,64,226
0.59
0.58
0.58
0.57
0.57
0.57
0.56
0.56
0.56
0.55
0.55
0.55
0.55
0.55
0.55
0.54
0.54
0.53
0.55
0.55
0.54
0.54
0.54
0.54
0.54
0.72
0.71
0.70
0.69
0.68
0.67
0.67
0.67
0.67
0.66
0.66
0.66
0.57
0.57
0.57
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.56
0.54
0.56
0.57
0.53
0.54
0.55
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice
Name
Sr.
No.
Shareholding
Date of
Debit / Credit
Increase/
Decrease
in shareholding
% of total
shares of the
Company
No. of Shares at
the beginning
(01-04-17) / end
of the year
(31-03-18)
20-Oct-2017
17-Nov-2017
24-Nov-2017
1-Dec-2017
8-Dec-2017
19-Jan-2018
9-Feb-2018
23-Feb-2018
2-Mar-2018
9-Mar-2018
23-Mar-2018
31-Mar-2018
1-Apr-2017
(5,61,400)
(14,59,239)
(18,51,088)
(63,625)
(54,836)
12,050
70,000
74,648
2,66,661
13,14,725
6,27,518
1,99,098
0
14
Reliance Aromatics and
Petrochemicals Limited#
3,33,38,738
2,98,89,898
0.53
0.92
2,98,89,898
0.47
31-Mar-2018
269
Reason Cumulative Shareholding during
the year
(01-04-17 to 31-03-18)
No.of Shares
% of total
shares of the
Company
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Nil
movement
during the
year
3,42,02,826
3,27,43,587
3,08,92,499
3,08,28,874
3,07,74,038
3,07,86,088
3,08,56,088
3,09,30,736
3,11,97,397
3,25,12,122
3,31,39,640
3,33,38,738
0.54
0.52
0.49
0.49
0.49
0.49
0.49
0.49
0.49
0.51
0.52
0.53
2,98,89,898
0.47
* Not in the list of top 10 shareholders as on 01-04-2017. The same has been reflected above since the shareholder was one of the top 10 shareholders as on
31-03-2018.
# Ceased to be in the list of top 10 shareholders as on 31-03-2018. The same is reflected above since the shareholder was one of the top 10 shareholder as on 01-04-
2017.
Attachment G
IV. Shareholding Pattern (Equity Share Capital Breakup as Percentage of Total Equity)
v) Shareholding of Directors and Key Managerial Personnel
Sr. No.
Shareholding
Name
Date of
Debit / Credit
Increase / Decrease
in shareholding
Reason Cumulative Shareholding during the
year(01-04-17 to 31-03-18)
No. of Shares % of total shares of
the Company
% of total shares
of the Company
No. of Shares at the
beginning
(01-04-17) / end of
the year
(31-03-18)
36,15,846
0.11
1-Apr-2017
A
1
2
3
4
5
DIRECTORS:
Mukesh D. Ambani
Chairman and Managing
Director
Nikhil R. Meswani
Executive Director
Hital R. Meswani
Executive Director
Nita M. Ambani
Non-Executive Director
P. M. S Prasad
Executive Director
72,31,692
16,78,374
33,56,748
16,11,886
32,23,772
33,98,146
67,96,292
10,36,666
21-Sep-2017
36,15,846 Bonus Allotment
72,31,692
0.11 31-Mar-2018
0.05
1-Apr-2017
72,31,692
21-Sep-2017
16,78,374 Bonus Allotment
33,56,748
0.05 31-Mar-2018
0.05
1-Apr-2017
33,56,748
21-Sep-2017
16,11,886 Bonus Allotment
32,23,772
0.05 31-Mar-2018
0.10
1-Apr-2017
32,23,772
21-Sep-2017
33,98,146 Bonus Allotment
67,96,292
0.11 31-Mar-2018
0.03
1-Apr-2017
67,96,292
6-Sep-2017
(1,36,666)
Transfer
9,00,000
21-Sep-2017
9,00,000 Bonus Allotment
18,00,000
6,00,000
0.01 31-Mar-2018
30-Jan-2018
(12,00,000)
Transfer
6,00,000
6,00,000
0.11
0.11
0.05
0.05
0.05
0.05
0.11
0.11
0.03
0.03
0.01
0.01
Integrated Annual Report 2017–18Board’s Report
270
Sr. No.
Name
Shareholding
Date of
Debit / Credit
Increase / Decrease
in shareholding
Reason Cumulative Shareholding during the
year(01-04-17 to 31-03-18)
% of total shares
of the Company
No. of Shares % of total shares of
the Company
No. of Shares at the
beginning
(01-04-17) / end of
the year
(31-03-18)
33,499
6
Pawan Kumar Kapil
Executive Director
61,000
3,36,000
0.00 31-Mar-2018
0.01
1-Apr-2017
27-Jun-2017
28-Jun-2017
30-Jun-2017
21-Sep-2017
6,80,000
27,984
0.01 31-Mar-2018
0.00
1-Apr-2017
0.00
1-Apr-2017
15-May-2017
21-Sep-2017
25-Oct-2017
27-Oct-2017
23-Nov-2017
27-Nov-2017
22-Jan-2018
23-Jan-2018
22-May-2017
23-May-2017
25-May-2017
21-Sep-2017
0.00 31-Mar-2018
0.00
1-Apr-2017
0.00
21-Jul-2017
0.00
1-Apr-2017
1
ESOS Allotment
33,500 Bonus Allotment
(1,000)
(1,500)
(300)
(200)
(2,050)
(950)
3,557
1
442
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
3,40,000 Bonus Allotment
500
1,000
716
Transfer
Transfer
Transfer
30,200 Bonus Allotment
0
Nil movement
during the year
21-Sep-2017
2,300 Bonus Allotment
0.00 31-Mar-2018
0.00
1-Apr-2017
0.00 31-Mar-2018
0.00
1-Apr-2017
0.00 31-Mar-2018
0.00
1-Apr-2017
0.00 31-Mar-2018
0.00
1-Apr-2017
6-Feb-2018
7-Feb-2018
8-Feb-2018
9-Feb-2018
12-Feb-2018
0.00 31-Mar-2018
0.00
21-Jul-2017
0.00 31-Mar-2018
0
0
0
Nil Holding/
movement
during the year
Nil Holding/
movement
during the year
Nil Holding/
movement
during the year
1,518
124
32
163
2,163
0
Transfer
Transfer
Transfer
Transfer
Transfer
Nil Holding/
movement
during the year
60,400
13,544
13,544
2,300
4,600
0
0
0
0
0
0
0
4,000
0
0
33,500
67,000
66,000
64,500
64,200
64,000
61,950
61,000
61,000
3,39,557
3,39,558
3,40,000
6,80,000
6,80,000
28,484
29,484
30,200
60,400
60,400
13,544
4,600
4,600
0
0
0
1,518
1,642
1,674
1,837
4,000
4,000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.01
0.01
0.01
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
0.00
7
Mansingh L. Bhakta
Independent Director
8
Yogendra P. Trivedi
Independent Director
9
Dr. Dharam Vir Kapur
Independent Director
(Ceased to be a Director w.e.f.
10
21-07-2017)
Prof. Ashok Misra
Independent Director
11
Prof. Dipak C. Jain
Independent Director
12
Raghunath A. Mashelkar
Independent Director
13
Adil Zainulbhai
Independent Director
14
Raminder Singh Gujral
Independent Director
15
Dr. Shumeet Banerji
Independent Director
(Appointed as a Director w.e.f.
21-07-2017)
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice Sr. No.
Name
Shareholding
Date of
Debit / Credit
Increase / Decrease
in shareholding
Reason Cumulative Shareholding during the
year(01-04-17 to 31-03-18)
271
No. of Shares % of total shares of
the Company
% of total shares
of the Company
No. of Shares at the
beginning
(01-04-17) / end of
the year
(31-03-18)
26,278
0.00
1-Apr-2017
26-Jul-2017
3-Aug-2017
4-Aug-2017
21-Sep-2017
(11,000)
(5,000)
(5,000)
Transfer
Transfer
Transfer
5,278 Bonus Allotment
10,556
10,00,126
0.00 31-Mar-2018
0.03
1-Apr-2017
B
1
Key Managerial Personnel
K. Sethuraman
Group Company Secretary and
Chief Compliance Officer
2
Alok Agarwal
Chief Financial Officer
15,278
10,278
5,278
10,556
10,556
9,75,126
9,50,126
9,25,126
9,00,126
8,75,126
8,25,126
26-Jul-2017
2-Aug-2017
1-Sep-2017
5-Sep-2017
6-Sep-2017
18-Sep-2017
21-Sep-2017
18-Oct-2017
0.03 31-Mar-2018
0.00
1-Apr-2017
21-Sep-2017
11-Dec-2017
(25,000)
(25,000)
(25,000)
(25,000)
(25,000)
(50,000)
Transfer
Transfer
Transfer
Transfer
Transfer
Transfer
8,75,126 Bonus Allotment
17,00,252
(1,00,000)
Transfer
16,00,252
99,180 Bonus Allotment
36,000
ESOS Allotment
16,00,252
1,98,360
2,34,360
2,34,360
0.00
0.00
0.00
0.00
0.00
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.00
0.00
0.00
3
Srikanth Venkatachari
Joint Chief Financial Officer
16,00,252
99,180
2,34,360
0.00 31-Mar-2018
Attachment H
V.
Indebtedness
Indebtedness of the Company including interest outstanding / accrued but not due for payment
Particulars
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
Interest accrued but not due
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)
Secured
Loans excluding
deposits
Unsecured
Loans
Deposits
` in crore
Total
Indebtedness
10,594
--
59
10,653
2,54,453
2,62,391
--
(4)
(7,942)
2,656
--
55
2,711
96,852
--
270
97,122
1,87,947
1,70,880
306
696
18,069
1,14,225
--
966
1,15,191
--
--
--
--
--
--
--
--
--
--
--
--
--
1,07,446
--
329
1,07,775
4,42,400
4,33,271
306
692
10,127
1,16,881
--
1,021
1,17,902
Integrated Annual Report 2017–18Board’s Report
272
Attachment I
VI. Remuneration of Directors and Key Managerial Personnel
i.
Remuneration to Managing Director (MD), Whole-time Directors (WTD) and / or Manager
Particulars of Remuneration
Sr.
No.
Name of MD / WTD / Manager
Mukesh D.
Ambani
Nikhil R.
Meswani
Hital R.
Meswani
P. M. S.
Prasad
` in crore
Total
Amount
Pawan
Kumar
Kapil
1
2
3
4
5
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) Income-tax
Act, 1961
(c) Profits in lieu of salary under section 17(3)
Income-tax Act, 1961
Stock Options
Sweat Equity
Commission (as % of profit)
Others (Retiral Benefits)
Total (i)
Ceiling as per the Act
4.49
5.27
5.26
8.71*
3.11*
26.84
0.27
-
-
-
9.53
0.71
15.00
0.03
-
-
-
14.40
0.29
19.99
0.04
-
-
-
14.40
0.29
19.99
0.00
0.23
-
-
-
-
-
-
0.28
8.99
0.13
3.47
0.57
-
-
-
38.33
1.70
67.44
₹ 4,580 crore (being 10% of the net profits of the Company calculated
as per Section 198 of the Companies Act, 2013)
* includes performance linked incentives for FY 2016-17 paid in FY 2017-18.
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.
Attachment J
VI. Remuneration of Directors and Key Managerial Personnel
ii.
Remuneration to other directors:
Particulars of Remuneration
Sr.
No.
Mansingh L.
Bhakta
Yogendra P.
Trivedi
Prof. Ashok
Misra
Prof. Dipak
C Jain
Name of Directors
Dr.
Raghunath
A.
Mashelkar
Adil
Zainulbhai
Nita M.
Ambani
Raminder
Singh
Gujral
Dr. Dharam
Vir Kapur
(ceased
to be a
Director
w.e.f. July
21, 2017)
` in crore
Total
Amount
Dr.
Shumeet
Banerji
(appointed
as a
Director
w.e.f. July
21, 2017)
1.
Independent Directors
Sitting fee for attending
Board / Committee meetings
0.09
0.33
0.08
0.16
0.09
0.30
0.29
· Commission
· Others
Total (1)
1.50
-
1.59
1.50
-
1.83
0.46
-
0.54
1.50
-
1.66
1.50
-
1.59
1.50
-
1.80
1.50
-
1.79
2.
Other Non-Executive
Directors
Sitting fee for attending
Board / Committee meetings
· Commission
· Others
Total (2)
Total (ii)=(1+2)
Total Managerial
Remuneration*
Overall Ceiling as per the Act
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.59
1.83
0.54
1.66
1.59
1.80
1.79
* Total remuneration to Managing Director, Whole-Time Directors and other Directors (being the total of i and ii)
₹ 458 crore (being 1% of the net profits of the Company calculated as per Section 198 of the Companies Act, 2013)
-
-
-
-
0.06
1.50
-
1.56
1.56
0.22
0.09
1.65
1.50
-
1.72
1.04
12.00
-
-
1.13
13.65
-
-
-
-
-
-
-
-
1.72
1.13
0.06
1.50
-
1.56
15.21
82.65
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance 180-273 Financial Statements Notice Attachment K
VI. Remuneration of Directors and Key Managerial Personnel
iii.
Remuneration to Key Managerial Personnel other than Managing Director / Manager / Whole-time Directors
Sr.
No.
1
2
3
4
5
Particulars of Remuneration
CEO
Key Managerial Personnel
Company
Secretary
(K.
Sethuraman)
CFO
(Alok Agarwal)
Joint CFO
(Srikanth
Venkatachari)
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 Income-tax Act, 1961
Stock Option
Sweat Equity
Commission (as % of profit)
Others- Retiral Benefits
Total
Not
Applicable
2.42
0.07
-
-
-
-
0.09
2.58
11.56
0.01
-
-
-
-
0.15
11.72
10.83
-
-
1.82
-
-
0.24
12.89*
273
` in crore
Total
Amount
24.81
0.08
-
1.82
-
-
0.48
27.19
* 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
Brief Description
Details of penalty
Authority (RD/
Appeal made, if any
Companies Act
/ punishment /
NCLT/ COURT)
(give details)
A. COMPANY
Penalty
Punishment
Compounding
B. DIRECTOR
Penalty
Punishment
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding
compounding fees
imposed
Nil
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 27, 2018
Integrated Annual Report 2017–18Board’s Report
Financial Statements
Standalone
275 / Independent Auditors’ Report on Financial Statements
280 / Balance Sheet
281 / Statement of Profit and Loss
282 / Statement of Changes in Equity
284 / Cash Flow Statement
286 / Notes to the Financial Statements
Integrated Annual Report 2017–18
Standalone Financial Statements
275
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, 2018, the
Statement of Profit and Loss, including the statement of Other
Comprehensive Income, the Cash Flow Statement and the
Statement of Changes in Equity for the year then ended, and a
summary of significant accounting policies and other
explanatory information (hereinafter referred to as “Standalone
Financial Statements”).
Management’s Responsibility for the Standalone
Financial Statements
The Company’s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 (“the Act”)
with respect to the preparation of these Standalone Financial
Statements that give a true and fair view of the Financial Position,
Financial Performance including Other Comprehensive Income,
Cash Flows and the Statement of Changes in Equity of the
Company in accordance with accounting principles generally
accepted in India, including the Indian Accounting Standards
(Ind AS) specified under section 133 of the Act, read with the
Companies (Indian Accounting Standards) Rules, 2015, as
amended. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and
the design, implementation and maintenance of adequate internal
financial control that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the Standalone Financial
Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these Standalone
Financial Statements based on our audit. We have taken into
account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made
thereunder. We conducted our audit of the Standalone Financial
Statements in accordance with the Standards on Auditing, issued
by the Institute of Chartered Accountants of India, as specified
under Section 143(10) of the Act. Those Standards require that we
comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the standalone
Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the Standalone
Financial Statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of
material misstatement of the Standalone Financial Statements,
whether due to fraud or error. In making those risk assessments,
the auditor considers internal financial control relevant to the
Company’s preparation of the Standalone Financial Statements
that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made
by the Company’s Directors, as well as evaluating the overall
presentation of the Financial Statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Standalone
Financial Statements.
Opinion
In our opinion and to the best of our information and according to
the explanations given to us, the Standalone Financial Statements
give the information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of
the Company as at March 31, 2018, its Profit including Other
Comprehensive Income, its Cash Flows and the Statement of
Changes in Equity for the year ended on that date.
Other Matters
1.
The accompanying Standalone Financial Statements
and other financial information includes the Company’s
proportionate share in unincorporated joint operation in
respect of total assets of ` 319 crore, total expenditure
of ` 446 crore and the elements making up the Cash
Flow Statement and related disclosures in respect of
an unincorporated joint operation which is based on
statements from the operator and certified by the
management. Our opinion is not modified in respect of
above matter.
2.
The comparative financial information of the Company for
the year ended March 31, 2017 prepared in accordance
Integrated Annual Report 2017–18 276
Independent Auditors’ Report
with Indian Accounting Standards, included in these
Standalone Financial Statements, have been audited by
the predecessor auditors. The report of the predecessor
auditors on the comparative financial information dated
April 24, 2017 expressed an unmodified opinion.
Report on Other Legal and Regulatory Requirements
1.
As required by the Companies (Auditor’s report) Order, 2016
(“the Order”) issued by the Central Government of India in
terms of sub-section (11) of section 143 of the Act, we give
in the Annexure 1, a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2.
As required by section 143(3) of the Act, we report that:
(a)
(b)
(c)
(d)
(e)
We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purpose 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, 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
books of account;
In our opinion, the aforesaid Standalone Financial
Statements comply with the Accounting Standards
specified under section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules,
2015, as amended;
On the basis of written representations received
from the directors as on March 31, 2018, and taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2018, from
(f)
(g)
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 2” to this report;
With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and
according to the explanations given to us:
i.
ii.
iii.
The Company has disclosed the impact of
pending litigations on its financial position in its
Standalone Financial Statements – Refer Note
33 to the Standalone 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;
There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by the
Company except for an amount of ` 19.02 crore
which are held in abeyance due to pending
legal cases.
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Mumbai
Date: April 27, 2018
Vikas Kumar Pansari
Partner
Membership No. 093649
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
Standalone Financial Statements
277
Annexure 1
To the Independent Auditor’s Report on the Standalone Financial Statements of
Reliance Industries Limited
(Referred to in paragraph 1, under ‘Report on Other Legal and
Regulatory Requirements’ section of our Report)
(iv)
(i)
(a)
The Company has maintained proper records
showing full particulars, including quantitative details
and situation of fixed assets.
In our opinion and according to the information and
explanations provided to us, provisions of section 185 and
186 of the Companies Act 2013 and in respect of loans to
directors including entities in which they are interested and
in respect of loans and advances given, investments made
and, guarantees, and securities given have been complied
with by the Company.
(b)
(c)
The Company has a regular programme for physical
verification in a phased periodic manner, which, in our
opinion, is reasonable having regards to the size of
the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
According to information and explanations given
by the management, the title deeds/lease deeds
of immovable properties included in Property,
Plant and Equipment are held in the name of the
Company except for the immovable properties
which were acquired by entities that have since
been amalgamated with the Company; property
acquired during the year of `178 crore for which the
registration of title deeds is in progress and in cases
of leasehold land of ` 89 crore in respect of which the
letters of allotment are received and supplementary
agreements entered; however, lease deeds are
pending execution (Refer note 1.1 of the
Financial Statements).
(ii)
The management has conducted physical verification of
inventory at reasonable intervals during the year and no
material discrepancies were noticed on such
physical verification.
(iii)
(a)
The Company has granted loans to parties covered
in the register maintained under section 189 of the
Companies Act, 2013. In our opinion and according to
the information and explanations provided to us, the
terms and conditions of the grant of such loans are
prima facie not prejudicial to the Company’s interest.
(b)
(c)
The schedule of repayment of principal and payment
of interest has been stipulated for the loans granted
and the repayment/receipts are regular.
The Principal and interest are not overdue in respect
of loans granted to companies, firms or other parties
listed in the register maintained under section 189 of
the Companies Act, 2013 which are overdue for more
than ninety days.
(v)
(vi)
The Company has not accepted any deposits within the
meaning of Sections 73 to 76 of the Act and the Companies
(Acceptance of Deposits) Rules, 2014 (as amended).
Accordingly, the provisions of clause 3(v) of the Order are
not applicable to the Company.
We have broadly reviewed the books of account maintained
by the Company pursuant to the rules made by the Central
Government for the maintenance of cost records under
section 148(1) of the Companies Act, 2013, related to the
manufacturing activities, and are of the opinion that prima
facie, the specified accounts and records have been made
and maintained. We have not, however, made a detailed
examination of the same.
(vii)
(a)
The Company is generally regular in depositing
with appropriate authorities undisputed statutory
dues including Provident Fund, Employees’ State
Insurance, Income-Tax, Sales-Tax, Goods and
Services Tax, Service Tax, Duty of Custom, Duty of
Excise, Value Added Tax, Cess and Other Statutory
Dues applicable to it.
(b)
According to the information and explanations
provided to us, no undisputed amounts payable
in respect of Provident Fund, Employees’ State
Insurance, Income-Tax, Service Tax, Sales-Tax, Goods
and Services Tax, Duty of Custom, Duty of Excise,
Value Added Tax, Cess and Other Statutory Dues
were outstanding, at the year end, for a period of
more than six months from the date they became
payable.
(c)
According to the records of the Company, the dues of
Income-Tax, Sales-Tax, Service Tax, Duty of Custom,
Duty of Excise, Value Added Tax and Cess which have
not been deposited on March 31, 2018 on account of
any dispute, are as follows:
Integrated Annual Report 2017–18
278
Annexure 1
To the Independent Auditor’s Report on the Standalone Financial Statements of
Reliance Industries Limited
Name of the
Statute
Nature
of Dues
Amount
(` in crore)
Period to which the amount relates
Forum where dispute is pending
Income Tax
Act,1961
Central
Excise Act,
1944
Central
Sales Tax
Act, 1956
and Sales
Tax Act
of various
States
Customs
Act, 1962
Total
Income
Tax
Excise
Duty and
Service
Tax
Sales
Tax/
VAT and
Entry
Tax
Customs
Duty
11 2009-10
Commissioner of Income-Tax (Appeals)
1 Various Years from 1990-91 to 2017-18 Commissioner of Central Excise
(Appeals)
102 Various Years from 1991-92 to 2010-11 Central Excise and Service Tax
Appellate Tribunal
4 Various Years from 2006-07 to 2009-10 High Court
282 Various Years from 1983-88 to 2012-13 Sales Tax
Appellate Tribunal
54 Various Years from 1999-00 to 2011-12 High Court
24 2001-02 and 2008-09
20 2007-08
Supreme Court
Central Excise and Service Tax
Appellate Tribunal
498
(viii)
In our opinion and according to the information and
explanations provided by the management, the Company
has not defaulted in repayment of loans or borrowing
to a financial institution, bank or government or dues to
debenture holders.
(ix)
(x)
(xi)
In our opinion and according to the information and
explanations provided by the management, the Company
has utilized the monies raised by way of debt instruments
and term loans for the purposes for which they were raised.
Based upon the audit procedures performed for the
purpose of reporting the true and fair view of the Financial
Statements and according to the information and
explanations provided by the management, we report
that no fraud by the Company or no fraud on the Company
by the officers and employees of the Company has been
noticed or reported during the year.
According to the information and explanations provided by
the management, the managerial remuneration has been
paid / provided in accordance with the requisite approvals
mandated by the provisions of section 197 read with
Schedule V to the Companies Act, 2013.
(xii)
In our opinion, the Company is not a nidhi Company.
Therefore, the provisions of clause 3(xii) of the Order are not
applicable to the Company and hence not commented upon.
(xiii)
According to the information and explanations provided by
the management, transactions with the related parties are
in compliance with section 177 and 188 of Companies Act,
2013 where applicable and the details have been disclosed
in the Financial Statements, as required by the applicable
accounting standards.
(xiv)
According to the information and explanations provided
to us and on an overall examination of the balance sheet,
the Company has not made any preferential allotment or
private placement of shares or fully or partly convertible
debentures during the year under review and hence,
reporting requirements under clause 3(xiv) of the Order are
not applicable to the Company and, not commented upon.
(xv)
According to the information and explanations provided by
the management, the Company has not entered into any
non-cash transactions with directors or persons
connected with him as referred to in section 192 of
Companies Act, 2013.
(xvi)
According to the information and explanations provided to
us, the provisions of section 45-IA of the Reserve Bank of
India Act, 1934 are not applicable to the Company.
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Mumbai
Date: April 27, 2018
Vikas Kumar Pansari
Partner
Membership No. 093649
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice Standalone Financial Statements
279
Annexure 2
To the Independent Auditor’s Report on the Standalone Financial Statements of
Reliance Industries Limited
Report on the Internal Financial Controls under Clause (i)
of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”)
We have audited the internal financial controls over financial reporting
of Reliance Industries Limited (“the Company”) as of March 31, 2018 in
conjunction with our audit of the Standalone 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 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
the 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.
Auditor’s 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 on Audit
of Internal Financial Controls Over Financial Reporting (the “Guidance
Note”) and the Standards on Auditing as specified under section 143(10)
of the Companies Act, 2013, to the extent applicable to an audit of
internal financial controls and both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether adequate internal financial
controls over financial reporting was established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system over financial
reporting and their operating effectiveness. Our audit of internal financial
controls over financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing the risk that
a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of the Financial
Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the 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 the internal financial control over financial
reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may
deteriorate.
Opinion
In our opinion, to the best of our information and according to the
explanations given to us, the Company has, in all material respects, an
adequate internal financial controls system over financial reporting and
such internal financial controls over financial reporting were operating
effectively as at March 31, 2018, 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 issued by the
Institute of Chartered Accountants of India.
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Mumbai
Date: April 27, 2018
Vikas Kumar Pansari
Partner
Membership No. 093649
Integrated Annual Report 2017–18 280
Balance Sheet
as at 31st March, 2018
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)
Other Non-Current Liabilities
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
As per our Report of even date
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
Mumbai
Date : April 27, 2018
Notes
As at
31st March, 2018
As at
31st March, 2017
(` in crore)
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
1,91,879
92,581
9,085
6,902
1,71,945
17,699
3,522
4,93,613
39,568
53,277
10,460
2,731
3,533
3,856
10,487
1,23,912
6,17,525
6,335
3,08,312
3,14,647
81,596
2,205
27,926
504
1,12,231
15,239
88,675
48,250
37,565
918
1,90,647
3,02,878
6,17,525
1,45,486
1,28,283
9,092
4,458
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 to 41
For and on behalf of the Board
- Chairman & Managing Director
Executive Directors
Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Shumeet Banerji
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
Statement of Profit and Loss
For the year ended 31st March, 2018
Standalone Financial Statements
281
Notes
2017-18
2016-17
(` in crore)
INCOME
Value of Sales
Income from Services
Value of Sales & Services (Revenue)
Less: GST Recovered
Revenue from Operations
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 Profit or Loss
Income tax relating to items that will not be reclassified to
Profit or Loss
Items that will be reclassified to Profit or Loss
Income tax relating to items that will be reclassified to Profit or Loss
iii.
iv.
Total Other Comprehensive Income for the Year (Net of Tax)
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
* After considering allotment of Bonus Equity Shares (Refer Note 30)
24
25
26
27
28
1
29
11
17
25.1
30
30
1 to 41
3,14,917
440
3,15,357
10,022
3,05,335
8,220
3,13,555
1,98,029
7,268
(3,232)
15,293
4,740
4,656
9,580
31,496
2,67,830
45,725
8,953
3,160
33,612
(66)
14
(4,388)
937
(3,503)
30,109
53.08
53.04
2,64,909
132
2,65,041
-
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)
2,192
33,617
49.77*
49.68 *
As per our Report of even date
For and on behalf of the Board
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
Mumbai
Date : April 27, 2018
- Chairman & Managing Director
Executive Directors
Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Shumeet Banerji
Integrated Annual Report 2017–18 282
Statement of Changes in Equity
For the year ended 31st March, 2018
A. Equity Share Capital
Balance at the beginning
of the reporting period
i.e. 1st April, 2016
3,240
Change in Equity
Share Capital during the
year 2016-17
11
Balance at the end
of the reporting period
i.e. 31st March, 2017
3,251
Change in Equity
Share Capital during the
year 2017-18
3,084
(` in crore)
Balance at the end
of the reporting period
i.e. 31st March, 2018
6,335
B. Other Equity
As at 31st March, 2017
Share Application Money Pending Allotment
Reserves and Surplus
Capital Reserve
Capital Redemption Reserve
Securities Premium Reserve
Debenture Redemption Reserve
Share Based Payments Reserve
General Reserve
Retained Earnings
Balance at the
beginning of the
reporting period
i.e.1st April, 2016
Total
Comprehensive
Income for the
Year
Transfer to/
(from) Retained
Earnings
On Employee
Stock Options
(` in crore)
Balance at the end
of the reporting
period i.e.31st
March, 2017
8
-
-
(4)
4
291
48
48,387
1,117
18
1,75,210
22,850
-
-
-
-
-
-
31,425
-
-
-
-
-
24,790
(24,790)
-
-
-
-
693
-
(2)
-
-
-
291
48
49,080
1,117
16
2,00,000
29,485
5,021
687
2,85,062
Other Comprehensive Income
2,829
2,192
Total
2,50,758
33,617
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice Statement of Changes in Equity
For the year ended 31st March, 2018
Standalone Financial Statements
283
Balance at the
beginning of
the reporting
period i.e.1st
April, 2017
Total
Comprehensive
Income for the
Year
Dividends
Tax on
Dividend
Transfer
to/ (from)
Retained
Earnings
On
Employee
Stock
Options
Issue of
Bonus
share
(` in crore)
Balance at
the end of
the reporting
period i.e.31st
March, 2018
As at 31st March, 2018
Share Application Money Pending
Allotment
Reserves and Surplus
Capital Reserve
Capital Redemption Reserve
Securities Premium Reserve
Debenture Redemption Reserve
Share Based Payments Reserve
General Reserve
Retained Earnings
4
-
-
-
-
11
-
15
291
48
49,080
1,117
16
2,00,000
29,485
-
-
-
-
-
-
33,612
-
-
-
-
-
-
(3,255)
-
-
-
-
-
-
(661)
-
-
-
4,134
-
25,000
(29,134)
-
-
126
-
(4)
-
4
-
(48)
(3,032)
-
-
-
-
291
-
46,174
5,251
12
2,25,000
30,051
Other Comprehensive Income
5,021
(3,503)
-
-
Total
2,85,062
30,109
(3,255)
(661)
-
-
-
-
1,518
137
(3,080)
3,08,312
As per our Report of even date
For and on behalf of the Board
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
Mumbai
Date : April 27, 2018
- Chairman & Managing Director
Executive Directors
Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Shumeet Banerji
Integrated Annual Report 2017–18 284
Cash Flow Statement
For the year ended 31st March, 2018
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 Property, Plant and Equipment (Net)
Depreciation / Amortisation and Depletion Expense
Effect of Exchange Rate Change
Net Gain on Financial Assets
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 Property, Plant and Equipment and Intangible Assets
Proceeds from disposal of Property, Plant and Equipment 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 Associates
Dividend Income from Others
Net Cash Flow used in Investing Activities
(` in crore)
2017-18
2016-17
45,725
(8)
9,580
(1,903)
(3,446)
(935)
(3,586)
4,656
50,083
(11,397)
(5,550)
37,479
70,615
(8,615)
62,000
(24,700)
75
(34,973)
-
(4,99,789)
5,04,318
(7,136)
2,162
12
922
(59,109)
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
(54,949)
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice Cash Flow Statement
For the year ended 31st March, 2018
C: CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Issue of Equity Share Capital
Share Application Money
Proceeds from Borrowing - Non Current
Repayment of Borrowing - Non Current
Borrowing - Current (Net)
Dividends Paid (including Dividend Distribution Tax)
Interest Paid
Net Cash Flow used in Financing Activities
Net Increase/(Decrease) in Cash and Cash Equivalents
Opening Balance of Cash and Cash Equivalents
Closing Balance of Cash and Cash Equivalents* (Refer Note 8)
*
Include towards Unclaimed Dividend of ` 259 crore (Previous Year ` 241 crore)
Change in Liability arising from financing activities
Borrowing - Non Current (Refer Note 15)
Borrowing - Current (Refer Note 19)
Standalone Financial Statements
285
(` in crore)
2017-18
2016-17
125
15
28,328
(11,344)
(7,855)
(3,916)
(7,267)
(1,914)
977
1,754
2,731
692
4
10,065
(15,329)
8,284
-
(5,355)
(1,639)
(5,138)
6,892
1,754
1st April,
2017
84,866
22,580
1,07,446
Cash flow
16,984
(7,855)
9,129
Foreign
exchange
movement
(208)
514
306
(` in crore)
31st March,
2018
1,01,642
15,239
1,16,881
As per our Report of even date
For and on behalf of the Board
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
Mumbai
Date : April 27, 2018
- Chairman & Managing Director
Executive Directors
Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Shumeet Banerji
Integrated Annual Report 2017–18 286
A. Corporate Information
Reliance Industries Limited (“the Company”) is a listed entity incorporated in India. The registered office of the Company is
located at 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021, India.
The Company is engaged in activities spanning across hydrocarbon exploration and production, petroleum refining and
marketing, petrochemicals, retail and digital services.
B. Significant Accounting Policies
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.
Company’s Financial Statements are presented in Indian Rupees (`), which is also its functional currency and all values are
rounded to the nearest crore (` 00,00,000), except when otherwise indicated.
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. In case of land
the Company has availed fair value as deemed cost on the date of transition to Ind AS. 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.
Property, Plant and Equipment which are significant to the total cost of that item of Property, Plant and Equipment
and having different useful life are accounted separately.
Other Indirect 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 on depreciable amount
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
Depreciation
Fixed Bed Catalyst (useful life: 2 years or more)
Fixed Bed Catalyst (useful life: up to 2 years)
Premium on Leasehold Land
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.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
287
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 lease.
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 ranging from 18 years to 99 years. 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 losses, 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.
Other Indirect 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 Intangible Assets
Under Development.
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.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
288
A summary of amortisation / depletion policies applied to the Company’s Intangible Assets to the extent of
depreciable amount is as follows:
Particular
Depreciation
Technical Know-How
Computer Software
Development Rights
Others
Over the useful life of the underlying assets ranging from 5 years to 35 years.
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.
In case of Jetty, the aggregate amount amortised to date is not less than the aggregate
rebate availed by the Company.
The amortisation period and the amortisation method for Intangible Assets with a finite useful life are reviewed at
each reporting date.
(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.
(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.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
289
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.
Provision for 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
fulfil 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
The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee
renders the related service. If the contribution payable to the scheme for service received before the balance
sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after
deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services
received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will
lead to, for example, a reduction in future payment or a cash refund.
Defined Benefit Plans
The Company pays gratuity to the employees who have 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.
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 Income Tax 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.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
290
(j)
Tax Expenses
The tax expense for the period comprises of current tax and deferred income tax. Tax is recognised in Statement of
Profit and Loss, except to the extent that it relates to items recognised in the Other Comprehensive Income or in
equity. In which case, the tax is also recognised in Other Comprehensive Income or Equity.
i)
ii)
Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
Income Tax authorities, based on tax rates and laws that are 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 27.3.
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 which
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.
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
Other Comprehensive Income or Statement of Profit and Loss are also recognised in Other Comprehensive Income
or Statement of Profit and Loss, respectively).
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
291
(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 operations 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.
Interest Income
Interest Income from a Financial Assets is recognised using effective interest rate method.
Dividend Income
Dividend Income is recognised when the Company’s right to receive the amount has been established.
(n)
Financial Instruments
Financial Assets
i)
A.
Initial Recognition and Measurement
All Financial Assets are initially recognized at fair value. Transaction costs that are directly attributable
to the acquisition or issue of Financial Assets, 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.
Subsequent measurement
a)
Financial Assets measured 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 measured 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 measured 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.
C.
Investment in Subsidiaries, Associates and Joint Ventures
The Company has accounted for its investments in Subsidiaries, associates and joint venture at cost less
impairment loss (if any).
D. 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, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
292
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 the 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)
iii)
Financial Liabilities
A.
Initial Recognition and Measurement
All Financial Liabilities are recognized at fair value and in case of borrowings, 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.
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 hedge which is recognised in Other Comprehensive
Income and later to Statement of Profit and Loss when the hedged item affects profit or loss or is 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
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
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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.
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.
v) Offsetting
Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet when,
and only when, the Company has a legally enforceable right to set off the amount and it intends, either to settle
them on a net basis or to realise the asset and settle the liability simultaneously
(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. Once 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.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
294
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 next financial years.
(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 it’s 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 32.2.
(b) Decommissioning Liabilities
The liability for decommissioning costs are recognized when the Company has an 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.
(c)
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.
(d) Recoverability of Trade Receivables
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.
(e) 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.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
295
(f )
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.
Standards Issued but not Effective
On March 28, 2018, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contract with Customers and
certain amendment to existing Ind AS. These amendments shall be applicable to the Company from April 01, 2018.
(a)
Issue of Ind AS 115 - Revenue from Contracts with Customers
Ind AS 115 will supersede the current revenue recognition guidance including Ind AS 18 Revenue, Ind AS 11 Construction
Contracts and the related interpretations. Ind AS 115 provides a single model of accounting for revenue arising from
contracts with customers based on the identification and satisfaction of performance obligations.
(b)
Amendment to Existing issued Ind AS
The MCA has also carried out amendments of the following accounting standards:
i.
ii.
Ind AS 21 - The Effects of Changes in Foreign Exchange Rates
Ind AS 40 - Investment Property
iii.
Ind AS 12 - Income Taxes
iv.
Ind AS 28 - Investments in Associates and Joint Ventures and
v.
Ind AS 112 - Disclosure of Interests in Other Entities
Application of above standards are not expected to have any significant impact on the Company’s Financial Statements.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
296
1.
PROPERTY, PLANT AND EQUIPMENT, CAPITAL WORK-IN-PROGRESS, INTANGIBLE ASSETS AND INTANGIBLE
ASSETS UNDER DEVELOPMENT
Description
GROSS BLOCK
DEPRECIATION / AMORTISATION AND DEPLETION
NET BLOCK
(` in crore)
As at
01-04-2017
Additions
/ Adjustments
Deductions
/ Adjustments
As at
31-03-2018
As at
01-04-2017
For the Year#
Deductions
/Adjustments
As at
31-03-2018
As at
31-03-2018
As at
31-03-2017
Property, Plant and
Equipment
Own Assets :
Leasehold Land
Freehold Land
Buildings
Plant and Machinery
Electrical Installations
Equipments $
Furniture and Fixtures
Vehicles
Ships
Aircrafts and Helicopters
Sub-Total
Leased Assets :
Plant and Machinery
Ships
Sub-Total
Total (A)
Intangible Assets : *
Technical Knowhow Fees
Software
Development Rights
Others
Total (B)
Total (A + B)
Previous Year
Capital Work-in-Progress
Intangible Assets Under
Development
19,509
36,780
12,327
1,71,706
4,774
3,510
609
620
423
46
2,50,304
318
10
328
2,50,632
3,601
1,003
41,304
812
46,720
2,97,352
2,83,660
1
181
2,099
48,235
1,700
2,235
55
38
1
-
54,545
-
-
-
54,545
819
30
859
-
1,708
56,253
15,205
-
7
4
332
152
4
6
91
-
-
596
19,510
36,954
14,422
2,19,609
6,322
5,741
658
567
424
46
3,04,253
951
-
4,864
92,165
3,066
2,528
497
413
310
36
1,04,830
-
-
-
306
318
10
10
316
328
596 3,04,581 1,05,146
-
-
-
-
-
596
1,513
4,420
1,033
42,163
812
48,428
3,53,009
2,97,352
2,561
915
33,363
789
37,628
1,42,774
1,34,669
195
-
512
6,520
365
395
22
71
9
1
8,090
-
-
-
8,090
188
42
1,462
23
1,715
9,805
8,670
-
-
2
294
144
4
6
84
-
-
534
1,146
-
5,374
98,391
3,287
2,919
513
400
319
37
1,12,386
18,364
36,954
9,048
1,21,218
3,035
2,822
145
167
105
9
1,91,867
18,558
36,780
7,463
79,541
1,708
982
112
207
113
10
1,45,474
-
-
-
12
-
12
534 1,12,702 1,91,879 1,45,486
306
10
316
12
-
12
-
-
-
-
-
534
565
2,749
957
34,825
812
39,343
1,52,045
1,42,774
1,671
76
7,338
-
9,085
2,00,964
1,54,578
92,581
6,902
1,040
88
7,941
23
9,092
1,54,578
1,28,283
4,458
$
Includes Office Equipments
* Other than internally generated
#
Depreciation / Amortisation and Depletion Expense for the year includes depreciation of ` 225 crore (Previous year ` 205 crore) capitalised during the year. Thus,
the net amount ` 9,580 crore has been considered in Statement of Profit and Loss.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice 297
1.1
Leasehold Land includes :
i)
Leasehold Land includes ` 778 crore (Previous Year ` 778 crore) in respect of which the letters of allotment are
received and supplementary agreements entered, however, lease deeds are pending execution.
` 6,923 crore (Previous Year ` 6,923 crore) towards investment in preference shares representing right to hold and
use all the immovable properties of the investee entity.
ii)
1.2 Buildings includes :
i)
ii)
Cost of shares in Co-operative Societies ` 2,02,700 (Previous Year ` 2,00,200).
` 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 include Jetties amounting to ` 812 crore (Previous Year ` 812 crore), the Ownership of which
vests with Gujarat Maritime Board.
1.4 Capital Work-in-Progress and Intangible Assets Under Development includes :
i)
ii)
` 16,567 crore (Previous Year ` 15,544 crore) on account of Project Development Expenditure.
` 7,551 crore (Previous Year ` 11,526 crore) on account of cost of construction materials at site.
1.5
Additions in Property, Plant and Equipment, Capital Work-in-Progress, Intangible Assets and Intangible Assets Under
Development includes ` 823 crore (net loss) [Previous Year ` 2,166 crore (net loss)] on account of exchange difference
during the year.
1.6 For Assets pledged as security - Refer Note 15.1 .
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
298
Particulars
2.
INVESTMENTS - NON-CURRENT
Investments measured at Amortised Cost
In Preference Shares of Associate Company
Unquoted, fully paid up
9% Non Cumulative Redeemable Preference Shares of East West
Pipeline Limited ( Formerly Reliance Gas Transportation Infrastructure
Limited) of ` 10 each
As at 31st March, 2018
As at 31st March, 2017
Units Amount
Units Amount
(` in crore)
50,00,00,000
3,542
50,00,00,000
3,324
In Government Securities
Unquoted
6 Years National Savings Certificates (Deposited with Sales Tax
Department and Other Government Authorities) [` 33,077 (Previous
Year ` 33,077]
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)]
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
Dreketi S.A. of Uruguayan Peso 1 each (` 45,326)
Jio Information Solutions Limited (Formerly Reliance Textiles Limited)
of ` 10 each [` 5,00,000; (Previous Year ` 5,00,000)]
68,60,064
64,29,20,000
62,63,125
11,08,500
52,00,000
9,24,00,000
20,000
50,000
Reliance Energy Generation and Distribution Limited of ` 10 each
Reliance Ethane Holding Pte Limited of USD 1 each
Reliance Gas Pipelines Limited of ` 10 each
Reliance Global Energy Services (Singapore) Pte Ltd. of SGD 1 each
Reliance Global Energy Services Limited of GBP 1 each
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 ` 2,25,000)]
12,50,000
15,85,00,000
37,30,00,000
15,00,000
5,00,000
14,75,04,400
42,450
44,74,74,90,000
9,73,28,000
22,500
3,542
-
3,542
16
16
64
1
4
-
69
92
92
-
-
68,60,064
64,29,20,000
62,63,125
11,08,500
52,00,000
9,24,00,000
-
50,000
1
1,010
373
65
32
148
46
12,50,000
15,85,00,000
37,30,00,000
15,00,000
5,00,000
14,75,04,400
42,450
44,747 44,74,74,90,000
9,73,28,000
22,500
97
-
3,324
-
3,324
16
16
64
1
4
-
69
92
92
-
-
1
1,010
373
65
32
148
46
44,747
97
-
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
299
Particulars
Reliance Retail Ventures Limited of ` 10 each
Reliance Sibur Elastomers Private Limited of ` 10 each
Reliance Strategic Investments Limited of ` 10 each
Reliance Ventures Limited of ` 10 each
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
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 Pipelines 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
9% Non-Cumulative Optionally Convertible Preference Shares of
Reliance Prolific 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 (Previous year ` 6.22 each
paid up)
8.5% Non-Cumulative Optionally Convertible Preference Shares of
Reliance Retail Ventures Limited of ` 10 each (` 2.50 each paid up)
In Debentures of Subsidiary Companies
Unquoted, fully paid up
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 Prolific Commercial Private Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully Convertible Debentures
of Reliance Comtrade Private Limited of ` 10 each (` 20,00,000)
(Previous Year ` 20,00,000)
Zero Coupon Unsecured Optionally Fully Convertible Debentures of
Reliance Eminent Trading & Commercial Private Limited of ` 10 each
(` in crore)
As at 31st March, 2018
As at 31st March, 2017
Units Amount
Units Amount
5,66,70,00,000
1,15,68,53,117
20,20,200
26,91,150
5,667
1,157
2
2,351
55,696
5,66,70,00,000
46,40,28,117
20,20,200
26,91,150
5,667
464
2
2,351
55,003
6,12,026
1,103
6,12,026
1,103
4,02,800
113
4,02,800
113
13,00,00,00,000
65,000
3,00,00,00,000
15,000
3,62,02,475
10,499
3,62,02,475
10,499
36,76,50,000
368
36,76,50,000
368
2,70,11,17,000
16,391
2,62,44,17,000
15,747
1,71,64,000
103
1,71,64,000
103
14,39,92,000
1,296
-
-
94,873
42,933
-
-
6,00,00,00,000
18,660
80,00,00,000
1,000
-
-
1,000
18,660
8,83,143
442
8,83,143
86,20,00,000
862
86,20,00,000
3,11,10,000
3,75,70,000
2,00,000
31
38
-
3,11,10,000
3,75,70,000
2,00,000
2,12,00,000
21
2,12,00,000
442
862
31
38
-
21
1,394
1,394
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
300
Particulars
In Corpus of Trust
Unquoted
Investment in Corpus of Independent Media Trust
Total of Investments measured at Cost
Investments measured at Fair Value Through Other
Comprehensive Income
In Equity Shares of Other Companies
Unquoted, fully paid up
Petronet India Limited of ` 10 each
Petronet India Limited of ` 0.10 each (` 10,00,000)
Petronet VK Limited of ` 10 each [` 20,000; (Previous Year ` 20,000)]
Ahmedabad Mega Clean Association of ` 10 each [` 1,00,000;
(Previous Year ` 1,00,000)]
Quoted, fully paid up
Balaji Telefilms Limited of ` 2 each
Other Investments
In Membership Share in LLP, Unquoted
Labs 02 Limited Partnership
In Membership Interest in LLC, Unquoted
BreakThrough Energy Ventures LLC
In Debentures or Bonds - Quoted fully paid up
Total of Investments measured at Fair Value Through Other
Comprehensive Income
Investments measured at Fair Value Through Profit and Loss
In Fixed Maturity Plan - Quoted fully paid up
Total of Investments measured at Fair Value Through Profit and
Loss
Total Investments - Non-Current
Aggregate amount of Quoted Investments
Market Value of Quoted Investments
Aggregate amount of Unquoted Investments
Aggregate provision for impairment in value of Investments
As at 31st March, 2018
As at 31st March, 2017
Units Amount
Units Amount
(` in crore)
3,366
3,366
1,56,506
3,366
3,366
1,21,533
-
1,00,00,000
19,99,990
10,000
2,52,00,000
-
-
-
-
-
328
328
2
11
2,698
3,039
8,858
8,858
1,71,945
11,900
12,182
1,60,045
42
1,00,00,000
-
19,99,990
10,000
-
10
-
-
-
10
-
-
-
-
7,755
7,765
7,922
7,922
1,40,544
15,693
15,991
1,24,851
42
(` in crore)
2.1 Category-wise Investment - Non-Current
Financial Assets measured 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 and Loss
Total Investment - Non-Current
3,542
1,56,506
3,039
8,858
1,71,945
3,324
1,21,533
7,765
7,922
1,40,544
As at
31st March, 2018
As at
31st March, 2017
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 34 and Note 35 of Consolidated Financial Statement.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
301
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
847
16,002
850
17,699
793
8,756
869
10,418
(` in crore)
3.
LOANS - NON-CURRENT (Unsecured and Considered Good)
Deposits with Related Parties (Refer Note 31(iv))
Loans and advances to Related parties (Refer Note 31(iv))
Other Loans and Advances*
Total
* Other Loans and Advances includes primarily fair value of interest free deposits.
A.
Loans and Advances in the nature of Loans given to Subsidiaries**:
Name of the Company
Sr.
No.
1
2
3
1
2
3
4
5
6
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 Limited
Reliance Ethane Holding Pte Limited
Total
As at
31st March,
2018
Maximum
Balance during
the year
As at
31st March,
2017
Maximum
Balance during
the year
12,703
13,703
3,299
-
16,002
1,140
1,737
-
-
-
-
2,877
18,879
4,035
-
1,321
1,868
155
-
34
3
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
All the above loans and advances have been given for business purposes
**
Loans and Advances does not include advances towards shares pending for allotment and interest receivable of ` 6 crore
(Previous Year ` 2,553 crore).
^ Loans and Advances fall under the category of ‘Loans - Non-Current’ and 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
159
#
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 (amalgamated in 2007-08) 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, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
302
(ii)
(iii)
Name of the Company
Investment by Reliance Industrial Investments and Holdings Limited in Subsidiaries
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
27
28
29
30
Indiawin Sports Private Limited
Kanhatech Solutions Private Limited
Naroda Power Private Limited
Reliance Ambit Trade Private Limited
Reliance Aromatics and Petrochemicals Limited
Reliance Chemicals Limited
Reliance Commercial Dealers Limited
Reliance Comtrade Private Limited
Reliance Content Distribution Limited
Reliance Corporate IT Park Limited
Reliance Digital Media Distribution Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Energy and Project Development Limited
Reliance Exploration & Production DMCC
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 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 Universal Enterprises Limited
Reliance Universal Traders Private Limited
Reliance Vantage Retail Limited
Reliance World Trade Private Limited
RIL Exploration & Production Myanmar Company Limited
31
Surela Investments and Trading Private Limited
Name of the Company
In Preference Shares :
Sr.
No.
1
2
3
4
5
6
7
8
Indiawin Sports Private Limited
Reliance Corporate IT Park Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Energy and Project Development Limited
Reliance Exploration & Production DMCC
Reliance Jio Infocomm Limited
Reliance Payment Solutions Limited
Reliance Progressive Traders Private Limited
Investment by Reliance Ventures Limited in Subsidiary:
In Equity Shares:
Sr.
No.
1
Model Economic Township Limited
Name of the Company
No. of Shares
26,50,000
7,50,00,000
24,000
10,00,000
10,09,300
10,10,600
37,49,990
10,00,000
50,000
2,37,99,94,480
10,000
1,00,00,000
10,09,280
1,76,200
6,46,93,950
1,00,00,000
10,00,000
8,60,10,000
11,50,00,000
10,10,000
1,00,00,000
10,00,000
1,00,00,000
20,20,000
40,00,000
64,25,000
1,00,00,000
5,60,000
1,000
74,999
5,000
No. of Shares
31,19,96,000
1,10,58,68,620
17,37,000
1,68,934
14,88,017
12,50,00,000
1,00,00,000
1,47,06,000
No. of Shares
9,70,00,000
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
(iv)
Name of the Company
Investment by Reliance Corporate IT Park Limited in Subsidiaries:
In Equity Shares:
Sr.
No.
1
2
3
4
Reliance SMSL Limited
Naroda Power Private Limited
Reliance Commercial Dealers Limited
Reliance LNG Limited
(v)
Investment by Reliance Strategic Investments Limited in Subsidiaries:
In Equity Shares:
Sr.
No.
Name of the Company
1
Reliance Commercial Dealers Limited
303
No. of Shares
50,000
50,000
75,00,000
22,500
No. of Shares
37,50,000
(` in crore)
4. OTHER NON-CURRENT ASSETS (Unsecured and Considered Good)
Capital Advances
Advance Income Tax (Net of Provision)
Other Non-Current Assets with Related Parties (Refer Note 31(ii))
Others*
Total
*
Include ` 295 crore (Previous Year ` 295 crore) deposited in Gas pool account (Refer Note 32.4 (b))
Advance Income Tax (Net of Provision)
At start of year
Charge for the year - Current Tax
Others#
Tax paid (Net) during the year
At end of year
# Pertain 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, 2018
As at
31st March, 2017
355
1,605
1,250
312
3,522
876
992
-
316
2,184
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
992
(8,953)
951
8,615
1,605
360
(8,333)
(595)
9,560
992
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
19,164
5,601
10,864
68
3,871
39,568
16,225
4,837
9,208
55
3,693
34,018
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
304
Particulars
6.
INVESTMENTS - CURRENT
Investments measured at Amortised Cost
Collateral Borrowing and Lending Obligation Unquoted
Total of Investments measured at Amortised Cost
Investments measured at Fair Value Through Other Comprehensive Income
In Mutual Fund Quoted
In Mutual Fund Unquoted
Total of Investments measured at Fair Value Through Other
Comprehensive Income
Investments measured at Fair Value Through Profit and Loss
In Government Securities - Quoted *
In Debentures or Bonds Quoted, fully paid up
In Treasury Bills - Quoted
In Fixed Maturity Plan - Quoted, fully paid up
In Mutual Fund - Quoted
In Mutual Fund - Unquoted
Total of Investments measured at Fair Value Through Profit and Loss
Total Investments - Current
Aggregate amount of Quoted Investments
Market Value of Quoted Investments
Aggregate amount of Unquoted Investments
*
Include ` Nil (Previous Year ` 595 crore) given as collateral security.
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
Amount
Amount
585
585
5
21,542
21,547
-
5,824
1,943
5,359
2
18,017
31,145
53,277
13,133
13,133
40,144
-
-
605
22,313
22,918
1,293
2,594
2,272
3,759
208
18,862
28,988
51,906
10,731
10,731
41,175
6.1 Category-wise Investment - Current
Financial Assets measured at Amortised Cost
Financial Assets measured at Fair Value Through Other Comprehensive Income
Financial Assets measured at Fair Value Through Profit and Loss
Total Investment - Current
585
21,547
31,145
53,277
-
22,918
28,988
51,906
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
As at
31st March, 2018
(` in crore)
As at
31st March, 2017
7.
TRADE RECEIVABLES (Unsecured and Considered Good)
Trade Receivables
Total
10,460
10,460
5,472
5,472
7.1 Trade receivables are netted with Bill discounting of ` 6,065 crore (Previous Year ` 7,524 crore)
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
305
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
8
2,723
2,731
2,731
5
1,749
1,754
1,754
8.
CASH AND CASH EQUIVALENTS
Cash on Hand
Balances with Banks*
Cash and Cash Equivalents as per Balance Sheet
Cash and Cash Equivalents as per Standalone Cash Flow Statement
*
Include Unclaimed Dividend of ` 259 crore (Previous Year ` 241 crore), Deposits of ` 158 crore (Previous Year ` 10,87,926) with maturity of more than 12 months
and fixed deposits of ` 1,270 crore ( Previous Year ` 1,335 crore ) Pledged as collateral securities.
8.1
Cash and Cash Equivalents include 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.
9.
LOANS - CURRENT (Unsecured and Considered Good)
Loans and Advances to Related Parties (Refer Note 31 (iv))#
Loans Others
Total
# Refer Note 3A for details of Loans.
10. OTHER FINANCIAL ASSETS - CURRENT
Interest Accrued on Investment
Deposits
Others^
Total
^ Others include fair value of derivatives.
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
2,883
650
3,533
4,250
650
4,900
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
118
792
2,946
3,856
176
1,194
2,002
3,372
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
306
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 Property, Plant and Equipment and
Intangible Assets
Incremental Deferred Tax Liability / (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
(` in crore)
Year Ended
31st March, 2018
Year Ended
31st March, 2017
8,953
3,160
12,113
8,333
1,019
9,352
Year Ended
31st March, 2018
45,725
34.608%
15,825
Year Ended
31st March, 2017
40,777
34.608%
14,112
(2,591)
3,530
(7,811)
8,953
2,788
372
3,160
12,113
26.49%
(2,707)
3,044
(6,116)
8,333
1,229
(210)
1,019
9,352
22.93%
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
12. OTHER CURRENT ASSETS (Unsecured and Considered Good)
Balance with Customs, Central Excise, GST and State Authorities
Other Current Assets to Related Parties (Refer Note 31 (ii))
Others*
Total
4,552
75
5,860
10,487
*
Include primarily Intangible Assets Under Development held for sale amounting to ` 4,353 crore, prepaid expenses and claim receivables.
3,436
-
1,423
4,859
(` in crore)
13. SHARE CAPITAL
Authorised Share Capital
14,00,00,00,000
(5,00,00,00,000)
1,00,00,00,000
(1,00,00,00,000)
Equity Shares of ` 10 each
Preference Shares of ` 10 each
As at
31st March, 2018
As at
31st March, 2017
14,000
1,000
15,000
5,000
1,000
6,000
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice 307
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
6,335
-
6,335
3,251
-
3,251
Issued, Subscribed and Paid up:
6,33,46,51,022
(3,25,12,78,100)
Less:
Calls in Arrears - by others
[` Nil (Previous Year ` 2,303)]
Equity Shares of ` 10 each fully paid up
Total
13.1
13.2
13.3
13.4
13.5
3,08,03,34,238
-
45,04,27,345
(45,04,27,345)
17,18,82,820
(17,18,82,820 )
3,44,000
(1,72,000)
-
(4,25,82,849 )
Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium
and Capital Redemption Reserve.
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.
Figures in bracket represents Previous Year's figure.
13.6 The details of shareholders holding more than 5% shares :
Name of the Shareholder
Devarshi Commercials LLP
Srichakra Commercials LLP
Karuna Commercials LLP
Life Insurance Corporation of India
Tattvam Enterprises LLP
As at 31st March, 2018
As at 31st March, 2017
No. of
Shares
71,08,00,410
68,88,95,274
50,81,66,996
48,29,64,286
43,14,31,608
%
held
No. of
Shares
11.22 35,54,00,205
10.88 34,44,47,637
8.02 25,40,83,498
7.62 26,26,13,009
6.81 21,57,15,804
%
held
10.93
10.59
7.81
8.08
6.63
13.7 The reconciliation of the number of shares outstanding is set out below :
Particulars
Equity Shares at the beginning of the year
Add: Shares issued on exercise of employee stock options
Add: Bonus Shares
Equity Shares at the end of the year
As at
31st March, 2018
As at
31st March, 2017
No. of Shares
No. of Shares
3,25,12,78,100
30,38,684
3,08,03,34,238
6,33,46,51,022
3,24,03,76,321
1,09,01,779
-
3,25,12,78,100
13.8
During the year, the Company has not granted any options (Previous year 74,454 options) under ESOS-2006 scheme and
the said scheme has been withdrawn. The Members approved a new scheme viz. ‘Reliance Industries Limited Employees’
Stock Option Scheme 2017’ (ESOS-2017) with a limit to grant 6,33,19,568 options. This ceiling will be adjusted for any
future bonus issue of shares or stock splits or consolidation of shares and also may further be adjusted at the discretion of
the Board of Directors for any corporate action (s). The Company has not granted any options under ESOS-2017.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
308
13.9 Rights, preferences and restrictions attached to shares:
The Company has only one class of equity shares having par value of ` 10 each and the holder of the equity share is entitled
to one vote per share. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held.
14. OTHER EQUITY
Share Application Money Pending Allotment
As per last Balance Sheet
Add: Issue of Shares / Application money received
Capital Reserve
As per last Balance Sheet
Capital Redemption Reserve
As per last Balance Sheet
Less: On issue of bonus shares
Securities Premium Reserve
As per last Balance Sheet
Add : On Employee Stock Options
Less: On issue of Bonus shares
Less: Calls in arrears - by others
[` Nil (Previous Year ` 1,03,189)]
Debentures Redemption Reserve
As per last Balance Sheet
Add: Transferred from Retained Earnings
Share Based Payments Reserve
As per last Balance Sheet
Less: On Employee Stock Options
General Reserve
As per last Balance Sheet
Add: Transferred from Retained Earnings
Retained Earnings
As per last Balance Sheet
Add: Profit for the year
Add: Transferred from Share Based Payments Reserve
Less: Appropriations
Transferred to General Reserve
Dividend on Equity Shares
[Dividend per Share ` 11 (Previous year ` Nil)]
Tax on Dividend
Transferred to Debenture Redemption Reserve
As at
31st March, 2018
As at
31st March, 2017
(` in crore)
4
11
48
(48)
49,080
126
49,206
(3,032)
-
1,117
4,134
16
(4)
2,00,000
25,000
29,485
33,612
63,097
4
(25,000)
(3,255)
(661)
(4,134)
4
291
48
15
291
-
8
(4)
48
-
48,387
693
49,080
-
-
46,174
49,080
1,117
-
5,251
1,117
18
(2)
12
16
1,75,210
24,790
2,25,000
2,00,000
22,850
31,425
54,275
-
(24,790)
-
-
-
30,051
29,485
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
309
As at
31st March, 2018
As at
31st March, 2017
(` in crore)
5,021
(3,503)
2,829
2,192
1,518
3,08,312
5,021
2,85,062
Other Comprehensive Income (OCI)
As per last Balance Sheet
Add: Movement in OCI (Net) during the year
Total
14.1
Share Application Money Pending Allotment represents application money received on account of Employees Stock Option
Scheme.
(` in crore)
As at 31st March, 2018 As at 31st March, 2017
Current
Current
Non-
Current
Non-
Current
15. BORROWINGS
Secured - At Amortised Cost
Non-Convertible Debentures
Unsecured - At Amortised Cost
Non-Convertible Debentures
Bonds
Term Loans- from Banks
Total
500
500
503
503
20,000
22,177
38,919
81,096
81,596
-
1,884
17,659
19,543
20,046
1,003
1,003
-
23,979
53,741
77,720
78,723
133
133
-
536
5,474
6,010
6,143
15.1 Secured Non Convertible Debentures referred above to the extent of:
a)
b)
c)
` 370 crore (Previous year ` 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.
` 133 crore (Previous year ` 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 (Previous year ` 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 :
a)
Secured :
Rate of Interest
6.25%
8.75%
10.75%
Total
Non-Current
2020-21
-
500
-
500
Total
-
500
-
500
(` in crore)
Current
2018-19
133
-
370
503
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
310
b)
Unsecured :
Rate of Interest
6.78%
6.80%
6.95%
7.00%
7.07%
7.17%
Total
Non-Current
2022-23
2020-21
-
-
-
5,000
-
5,000
10,000
2,500
2,500
2,500
-
2,500
-
10,000
Total
2,500
2,500
2,500
5,000
2,500
5,000
20,000
15. 3 Maturity Profile and Rate of Interest of Bonds are as set out below :
Rate of
Interest
1.87%
2.06%
2.44%
2.51%
3.67%
4.13%
4.88%
5.00%
6.34%
6.61%
7.63%
8.25%
9.38%
10.25%
10.50%
Total
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
126
-
124
-
141
-
147
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
221
-
144
-
-
-
-
538
365
126
124
141
147
-
6,517
-
-
-
-
-
-
-
-
-
7,055
-
-
-
-
5,214
-
-
-
-
-
33
-
-
-
-
5,247
-
-
-
-
-
-
4,888
-
-
-
-
-
-
-
-
4,888
-
-
-
-
-
-
-
1,304
-
-
-
-
-
-
-
1,304
126
124
141
147
-
-
-
-
-
-
-
-
-
-
-
538
126
124
141
147
-
-
-
-
-
-
-
-
-
-
-
538
126
124
141
147
-
-
-
-
-
-
-
-
-
-
-
538
126
124
141
147
-
-
-
-
-
-
-
-
-
-
-
538
-
-
-
-
-
-
-
-
-
-
-
-
-
81
-
81
-
-
-
-
-
-
-
-
-
-
-
-
-
-
62
62
2019-20
126
124
141
147
-
-
-
-
-
-
-
-
-
-
-
538
*
Include ` 63 crore (Non-Current ` 53 crore and Current ` 10 crore) as prepaid finance charges.
15. 4 Maturity Profile of Unsecured Term Loans are as set out below :
(` in crore)
Current
2018-19
-
-
-
-
-
-
-
(` in crore)
Current*
2018-19
126
124
141
147
-
-
-
-
248
1,108
-
-
-
-
-
1,894
Total
882
868
987
1,029
5,214
6,517
4,888
1,304
-
-
33
221
144
81
62
22,230
(` in crore)
Term Loans- from Banks#
Maturity Profile Non-Current
Current
Above 5 years
1-5 years
7,616
31,517
Total
39,133
1 year
17,766
#
Include ` 321 crore (Non-Current ` 214 crore and Current ` 107 crore) as prepaid finance charges.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
311
As at
31st March, 2018
(` in crore)
As at
31st March, 2017
2,205
2,205
2,118
2,118
16. PROVISIONS - NON-CURRENT
Provision for decommissioning of Assets#
Total
#
The movement in the provision is towards (i) 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 exists uncertainty on the timing of abandonment of well and related facilities
which would depend upon the ultimate life of the field and expected utilization of assets by other fields.
17. DEFERRED TAX LIABILITY (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 (Note 11 )
At the end of year
Component of Deferred tax liabilities / (asset)
Deferred tax liabilities / (asset) in relation to:
Property, Plant and Equipment and Intangible Asset
Financial Assets
Loan and Advances
Provisions
Total
As at
31st March, 2018
24,766
3,160
27,926
(` in crore)
As at
31st March, 2017
23,747
1,019
24,766
As at
31st March, 2017
Charge/(credit) to
Statement of Profit
and Loss
(` in crore)
As at
31st March, 2018
25,088
484
(21)
(785)
24,766
2,788
408
(6)
(30)
3,160
27,876
892
(27)
(815)
27,926
As at
31st March, 2018
(` in crore)
As at
31st March, 2017
18. OTHER NON-CURRENT LIABILITIES
Advance from Related Parties (Refer Note 31 (ii))
Total
504
504
-
-
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
312
19. BORROWINGS – CURRENT
Secured - At Amortised Cost
Working Capital Loans
From Banks
Foreign Currency Loans
Rupee Loans
Unsecured - At Amortised Cost
Other Loans and Advances
From Banks
Foreign Currency Loans
From Others
Commercial Paper*
Total
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
-
1,653
1,653
12
13,574
13,586
15,239
5,837
3,621
9,458
13,122
-
13,122
22,580
*
Maximum amount outstanding at any time during the year was ` 21,876 crore.
19.1
Working Capital Loans from Banks of ` 1,653 crore (Previous Year ` 9,458 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.
20. TRADE PAYABLES
Micro, Small and Medium Enterprises
Others
Total
As at
31st March, 2018
(` in crore)
As at
31st March, 2017
210
88,465
88,675
242
67,919
68,161
20.1 There are no overdue amounts to Micro, Small and Medium Enterprises as at March 31, 2018 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, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
313
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
20,046
1,138
259
-
-
26,807
48,250
6,143
370
241
1
1
37,164
43,920
21. OTHER FINANCIAL LIABILITIES - CURRENT
Current maturities of Borrowings - Non-Current
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
#
These figures do not include any amounts due and outstanding, to be credited to Investor Education and Protection Fund except ` 19 crore (Previous Year
` 20 crore) which is held in abeyance due to legal cases pending.
*
Includes Creditors for Capital Expenditure, Security Deposit and Financial liability at Fair Value.
22. OTHER CURRENT LIABILITIES
Other Payables^
Total
^
Includes advances from customers and statutory dues.
23. PROVISIONS - CURRENT
Provision for Employee Benefits (Refer Note 27.1)**
Other Provisions##
Total
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
37,565
37,565
16,897
16,897
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
276
642
918
177
1,091
1,268
** 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, 2017
of ` 596 crore as per the estimated pattern of dispatches. During the year, ` 596 crore was utilised for clearance of goods. Provision recognised under this class for
the year is ` 274 crore which is outstanding as on 31st March, 2018. 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 ` 419 crore as at 31st March, 2017. During the year, further provision of ` 805 crore was made
and sum of ` 933 crore were reversed on fulfilment of export obligation. Closing balance on this account as at 31st March, 2018 is ` 291 crore.
24. VALUE OF SALES
Particulars of Sale of Products
Petroleum Products
Petrochemical Products
Oil and Gas
Others
Total
2017-18
2,02,216
1,09,614
2,468
619
3,14,917
(` in crore)
2016-17
1,79,438
82,095
2,787
589
2,64,909
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements 314
25. OTHER INCOME
Interest
Bank deposits
Debt instruments
Other Financial Assets measured at Amortised Cost
Others [` 11,56,621 (Previous Year ` 14,19,866)]
Dividend Income
Other Non-Operating Income
Gain on Financial Assets
Realised Gain
Unrealised Gain / (Loss)
Total
(` in crore)
2017-18
2016-17
85
3,231
270
-
3,483
(37)
3,586
935
253
3,446
8,220
356
2,933
246
-
2,948
1,168
3,535
271
787
4,116
8,709
Above other income comprises of assets measured at Cost / Amortised Cost ` 1,725 crore (Previous Year ` 1,961 crore), Fair Value Through Profit and Loss ` 1,900 crore
(Previous Year ` 2,847 crore) and Fair Value Through Other Comprehensive Income ` 4,342 crore (Previous year ` 3,114 crore) and Other Non-Operating Income ` 253
crore (Previous year ` 787 crore)
25.1 Other Comprehensive Income
Government Securities
Debentures or Bonds
Debt Income Fund
Commodity Hedge
Cash Flow Hedge
Total
26. 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
2017-18
-
(686)
(1,769)
(197)
(1,736)
(4,388)
2017-18
10,932
5,601
16,533
9,263
4,837
14,100
799
13,301
(3,232)
(` in crore)
2016-17
(30)
220
826
-
1,736
2,752
(` in crore)
2016-17
9,263
4,837
14,100
7,663
2,871
10,534
1,273
9,261
(4,839)
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
27. EMPLOYEE BENEFITS EXPENSE
Salaries and Wages
Contribution to Provident Fund and Other Funds
Staff Welfare Expenses
Total
2017-18
4,056
246
438
4,740
As per Indian Accounting Standard 19 “Employee benefits”, the disclosures as defined are given below :
27.1 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
2017-18
126
12
50
315
(` in crore)
2016-17
3,889
229
316
4,434
(` in crore)
2016-17
105
12
40
The Company’s Provident Fund is exempted under Section 17 of Employees’ Provident Fund and Miscellaneous Provisions
Act, 1952.
Defined Benefit Plan
I)
Reconciliation of opening and closing balances of Defined Benefit Obligation
Particulars
Defined Benefit Obligation at beginning of the year
Add: On Acquisition / Transfer
Current Service Cost
Interest Cost
Actuarial (Gain) / Loss
Benefits Paid
Defined Benefit Obligation at end of the year
II)
Reconciliation of opening and closing balances of fair value of Plan Assets
Fair value of Plan Assets at beginning of year
Add: On Acquisition / Transfer
Expected Return on Plan Assets
Employer Contribution
Benefits Paid
Fair value of Plan Assets at end of the year
Actual Return on Plan Assets
(` in crore)
Gratuity (Funded)
2017-18
2016-17
664
76
36
50
(13)
(47)
766
657
-
34
53
(34)
(46)
664
(` in crore)
Gratuity (Funded)
2017-18
2016-17
665
76
56
16
(47)
766
56
657
-
54
-
(46)
665
54
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
316
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
Net Cost
In Other Comprehensive Income
Actuarial (Gain) / Loss
Return on Plan Assets
Net (Income)/ Expense for the year recognised in OCI
V)
Investment Details :
(` in crore)
Gratuity (Funded)
As at 31st
March 2018
766
766
-
As at 31st
March 2017
665
664
1
(` in crore)
Gratuity (Funded)
2017-18
2016-17
36
50
(50)
36
(13)
(6)
(19)
34
53
(53)
34
(34)
(1)
(35)
GOI Securities
Public Securities
State Government Securities (` 10,98,308)
Insurance Policies
Others (including bank balances) (` 9,93,805)
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)
Rate of employee turnover (per annum)
As at 31st March, 2018
As at 31st March, 2017
` in crore % Invested
` in crore % Invested
16
1
-
749
-
766
2.09
0.13
0.01
97.76
0.01
100.00
16
4
-
641
4
665
2.41
0.60
-
96.39
0.60
100.00
Gratuity (Funded)
2017-18
2006-08
2016-17
2006-08
(Ultimate)
(Ultimate)
8%
8%
6%
2%
8%
8%
6%
2%
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
317
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 2017-18.
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
(` in crore)
As at 31st March, 2018 As at 31st March, 2017
Decrease
Increase Decrease
Increase
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%)
21
22
4
23
23
4
19
20
2
21
21
2
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
determined by reference to market yields at the end of the reporting period on government bonds.
Interest
Risk
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.
Longevity
Risk
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.
Salary
Risk
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.
27.2
The Company had announced Voluntary Separation Scheme (VSS) for the employees of Patalganga Manufacturing Division.
A sum of ` 1 crore (Previous Year ` Nil) has been paid during the year and debited to the Statement of Profit and Loss under
the head “Employee Benefits Expense”.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
318
27.3 Share Based Payments
a)
Scheme Details
The Company has Employee Stock Option Scheme (ESOS -2006) under which majority of the options have
been granted at the exercise price of ` 321 (face value ` 10 each) to be vested from time to time on the basis of
performance and other eligibility criteria.
Pre Bonus
Post Bonus*
Financial Year of
Vesting
Range of Exercise
price (`) *
Range of Fair value
at Grant Date (`) *
Details of Employee Stock Options granted upto 31st March, 2015 but not vested as on 1st April, 2015
5,51,760
13,200
5,760
16,855
60,107
45,419
6,93,101
11,03,520
2015-16
26,400 2015-16 & 2016-17
2015-16
11,520
2015-16
33,710
1,20,214 2015-16 to 2018-19
90,838 2015-16 to 2019-20
13,86,202
321.00
322.30
464.50
382.50 - 486.00
430.00 - 440.00
421.60 - 480.40
154.90
156.20 - 164.90
227.20
194.20 - 241.00
140.70 - 226.50
126.90 - 236.50
14,967
74,454
89,421
7,82,522
29,934 2016-17 to 2019-20
1,48,908 2017-18 to 2020-21
1,78,842
15,65,044#
443.70
548.00
127.30 - 173.20
149.80 - 204.50
Details of Employee Stock Options granted from 1st April, 2015 to 31st March, 2018
Financial Year
(Year of Grant)
i)
2006-07
2008-09
2010-11
2011-12
2013-14
2014-15
Sub Total
ii)
2015-16
2016-17
Sub Total
Total
*
Stock options post bonus issue, range of exercise price and range of fair value at grant date have been proportionately adjusted to give the
impact of bonus issue in the ratio of 1:1 made by the Company during FY 2017-18.
#
Includes options exercised, expired / lapsed upto 31st March, 2018 i.e. 7,78,232. Accordingly balance of outstanding options granted as on
31st March, 2018 is 7,86,812.
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, of the Board.
b)
Compensation Expenses arising on account of the Share Based Payments
Expenses arising from equity – settled share-based payment
transactions
c)
Fair Value on the grant date
(` in crore)
Year ended
31st March, 2018
1.29
Year ended
31st March, 2017
1.00
The fair value on the grant date is determined using "Black Scholes Model", which takes into account exercise price,
term of the option, share price at grant date and expected price volatility of the underlying shares, expected dividend
yield and risk free interest rate for the term of the option.
The model inputs for options granted during the previous year ended 31st March, 2017 included as mentioned below.
Further, no new stock options were granted during FY 2017-18;
a) Weighted average exercise price `1,096
b)
c)
d)
e)
f)
g)
Grant date: 05.10.2016 & 10.10.2016
Vesting year: 2017-18 to 2020-21
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).
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
319
d) Movement in share options during the year:
Particulars
Balance at the beginning of the year
Bonus Issue
Granted during the year
Exercised during the year
Expired / Lapsed during the year
Balance at the end of the year
As at
31st March, 2018
Number
of share
options
5,44,682
5,44,682
-
(1,73,240)
(1,29,312)
7,86,812
Weighted
average
exercise price
379.41
379.41
-
338.37
430.31
380.08
As at
31st March, 2017
Number
of share
options
5,66,253
-
74,454
(81,815)
(14,210)
5,44,682
Weighted
average
exercise price
697.61
-
1096.00
642.03
758.55
758.82
Weighted average of remaining contractual life of the share options outstanding at the end of year is 288 days (Previous year 247 days)
28. FINANCE COSTS
Interest Expenses*
Applicable loss on foreign currency transactions and translation
Total
*
Interest Expenses are net of Interest Capitalised of ` 3,302 crore (Previous Year ` 2,852 crore)
29. 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
2017-18
3,901
755
4,656
2017-18
5,376
13,565
1,495
97
1,145
52
(95)
11
21,646
5,811
854
446
7,111
(` in crore)
2016-17
2,032
691
2,723
(` in crore)
2016-17
5,035
10,150
1,638
84
1,064
40
234
10
18,255
5,552
1,428
1,456
8,436
#
Excise Duty shown under Manufacturing Expenses 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, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
320
Establishment Expenses
Professional Fees
General Expenses
Rent
Insurance
Rates & Taxes
Other Repairs
Travelling Expenses
Payment to Auditors
Loss on Sale /Discard of Property, Plant and Equipments
Charity and Donations
Less: Transferred to Project Development Expenditure
Total
29.1 Payment to Auditors as :
Particulars
Statutory Audit Fees
Tax Audit Fees
Certification and Consultation Fees
Cost Audit Fees
(a)
(b)
(c)
(d)
Total
2017-18
758
1,049
91
902
606
427
173
18
17
790
4,831
2,092
31,496
2017-18
10
1
6
1
18
(` in crore)
2016-17
1,720
925
100
862
206
310
164
23
69
654
5,033
1,961
29,763
(` in crore)
2016-17
10
1
11
1
23
Certification and consultation fees primarily includes certification fees paid to auditors. Statute and regulation permit
auditors to certify export / import documentation, quarterly filings, XBRL filings, transfer pricing and bond issuances among
others.
29.2 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 ` 703 crore (Previous Year ` 620 crore)
(b)
Expenditure related to Corporate Social Responsibility is ` 745 crore (Previous Year ` 659 crore).
Details of Amount spent towards CSR given below:
Particulars
Rural Transformation
Health
Education
Sports For Development
Disaster Response
Urban Renewal (` 33,94,505)
Arts, Culture and Heritage
Total
2017-18
(` in crore)
2016-17
181
148
371
43
1
-
1
745
132
267
221
24
11
3
1
659
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
321
(c)
Out of note (b) above, ` 672 crore (Previous Year ` 557 crore) is spent through Reliance Foundation, ` 38 crore
(Previous Year ` 22 crore) is spent through Reliance Foundation Youth Sports and ` 1 crore spent through Reliance
Foundation Institution of Education and Research which are related parties.
(d)
Out of note (b) above, ` Nil (Previous Year ` 5 crore) is towards construction / acquisition of an asset that will be
owned by the Company.
30. EARNINGS PER SHARE (EPS)
Face value per Equity Share (`)
Basic Earnings per Share (`)
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
Diluted Earnings per Share (`)
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
Diluted EPS
Reconciliation of weighted average number of shares outstanding
Weighted Average number of Equity Shares used as
denominator for calculating Basic EPS
Total Weighted Average Potential Equity Shares
Weighted Average number of Equity Shares used as
denominator for calculating Diluted EPS
2017-18
2016-17
10
53.08
33,612
10
49.77*
31,425
6,33,26,37,065
6,31,44,54,258
53.04
33,612
49.68*
31,425
6,33,76,93,539
6,32,56,40,411
6,33,26,37,065
6,31,44,54,258
50,56,474
6,33,76,93,539
1,11,86,153
6,32,56,40,411
*
The Company has issued and allotted 308,03,34,238 equity shares to the eligible holders of equity shares on the book closure date (i.e., 9th September, 2017) as
bonus equity shares by capitalizing reserves on 13th September, 2017. The Earnings Per Share figures for the year ended 31st March 2017 have been adjusted to
give effect to the allotment of the bonus shares, as required by Ind AS-33.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
322
31. RELATED PARTIES DISCLOSURES
As per Ind AS 24, the disclosures of transactions with the Related Parties are given below:
(i)
List of Related Parties where control exists and also other 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
Name of the Related Party
Relationship
Aanant Commercial Private Limited ^
Adventure Marketing Private Limited#
AETN18 Media Private Limited#
Affinity Names Inc.
Aurora Algae Pty Limited ^
Aurora Algae RGV LLC ^
Aurora Algae Inc.
Capital18 Fincap Private Limited#
Central Park Enterprises DMCC^
Cluster Commercials 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 ^
Dreketi S.A. ^
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
Girisha Commercials Private Limited ^
Greycells18 Media Limited#
Ibn18 (Mauritius) Limited#
IndiaCast Media Distribution Private Limited # ^
IndiaCast UK Limited# ^
IndiaCast US Limited# ^
Indiawin Sports Private Limited
Infomedia Press Limited#
Jalaja Commericals Private Limited ^
Jio Information Solutions Limited (Formerly Reliance Textiles Limited)
Kanhatech Solutions Limited
Model Economic Township Limited
Moneycontrol Dot Com India Limited#
Naroda Power Private Limited ^
Network18 Holdings Limited#
Network18 Media & Investments Limited#
NW18 HSN Holding PLC# ^
Panorama Television Private Limited#
Subsidiary
# 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, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
323
Relationship
Subsidiary
Sr.
No.
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
84
85
86
87
88
89
90
91
92
93
Name of the Related Party
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 Content Distribution Limited ^
Reliance Corporate IT Park Limited
Reliance Digital Media Distribution 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 Lifestyle India Private Limited
(Formerly Reliance Brands Luxury Private Limited)
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 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 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 Limited
Reliance Jio Messaging Services Limited
Reliance Lifestyle Holdings Limited
Reliance LNG 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, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
Relationship
Subsidiary
324
Name of the Related Party
Reliance Marcellus II LLC
Reliance Marcellus LLC
Reliance Payment Solutions Limited
Reliance Petro Marketing Limited
Reliance Petroinvestments Limited ^
Reliance Polyolefins Limited
Sr.
No.
94
95
96
97
98
99
100 Reliance Progressive Traders Private Limited
101 Reliance Prolific Commercial Private Limited
102 Reliance Prolific Traders Private Limited
103 Reliance Retail Finance Limited
104 Reliance Retail Insurance Broking Limited
105 Reliance Retail Limited
106 Reliance Retail Ventures Limited
107 Reliance Sibur Elastomers Private Limited
108 Reliance SMSL Limited
109 Reliance Strategic Investments Limited
110 Reliance Supply Solutions Private Limited ^
111 Reliance Trading Limited ^
112 Reliance Universal Commercial Limited ^
113 Reliance Universal Enterprises Limited
114 Reliance Universal Traders Private Limited
115 Reliance Vantage Retail Limited
116 Reliance Ventures Limited
117 Reliance World Trade Private Limited @
118 Reliance-GrandOptical Private Limited
119 Resolute Land Consortium Projects Limited ^
120 RIL (Australia) Pty Limited ^
121 RIL Exploration and Production (Myanmar) Company Limited
122 RIL USA, Inc.
123 Roptonal Limited# ^
124 RP Chemicals (Malaysia) Sdn. Bhd.
125 RRB Investments Private Limited#
126 RRB Mediasoft Private Limited#
127 RRK Finhold Private Limited#
128 RVT Finhold Private Limited#
129 RVT Media Private Limited#
130 Santol Commercials Private Limited ^
131 Setpro18 Distribution Limited#
132 Surela Investment and Trading Private Limited
133 Tangerine Agro Private Limited ^
134 Television Eighteen Mauritius Limited#
135 Television Eighteen Media and Investment Limited#
136 TV18 Broadcast Limited#
137 TV18 Home Shopping Network Limited #^
138 Viacom18 Media (UK) Limited # ^
139 Viacom18 Media Private Limited # ^
140 Viacom18 US Inc.# ^
141 Watermark Infratech Private Limited#
142 Wave Land Developers Limited ^
143 Web18 Holdings Limited#
144 Web18 Software Services 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
@ Control by Petroleum Trust of which RIL is the sole beneficiary
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
325
Name of the Related Party
Sr.
No.
145 Independent Media Trust
146 Network18 Media Trust
147 Petroleum Trust
148 Jio Payments Bank Limited
149 East West Pipeline Limited ( Formerly Reliance Gas Transportation Infrastructure Limited)
150 Gujarat Chemical Port Terminal Company Limited
151 Indian Vaccines Corporation Limited
152 Reliance Europe Limited
153 Reliance Industrial Infrastructure Limited
154 Reliance Utilities and Power Private Limited
155 Sikka Ports and Terminals Limited ( Formerly Reliance Ports And Terminals Limited)
156 Shri Mukesh D. Ambani
157 Shri Nikhil R. Meswani
158 Shri Hital R. Meswani
159 Shri P. M. S. Prasad
160 Shri P. K. Kapil
161 Shri Alok Agarwal
162 Shri Srikanth Venkatachari
163 Shri K. Sethuraman
164 Smt. Nita M. Ambani
165 Dhirubhai Ambani Foundation
166 Hirachand Govardhandas Ambani Public Charitable Trust
167 HNH Trust and HNH Research Society
168 Jamnaben Hirachand Ambani Foundation
169 Reliance Foundation
170 Reliance Foundation Institution of Education and Research^
171 Reliance Foundation Youth Sports
172 IPCL Employees Gratuity Fund - Baulpur Unit
173 IPCL Employees Provident Fund Trust
174 Reliance Industries Limited Vadodara Units Employees Superannuation Fund
175 RIL Vadodara Unit Employees Gratuity Fund
176 Reliance Employees Provident Fund Bombay
177 Reliance Industries Limited Staff Superannuation Scheme
178 Reliance Industries Limited Employees Gratuity Fund
^ The above entities includes related parties where the relationship existed for the part of the year
Relationship
Company / Subsidiary is a
beneficiary
Joint Venture
Associates
Key Managerial Personnel
Relative of
Key Managerial Personnel
Enterprises over which Key
Managerial Personnel are
able to exercise significant
influence
Post Employment
Benefits Plans
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
326
(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
Purchase of Property, Plant and
Equipment 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 Benefits Expense
Payment to Key Managerial
Personnel/Relative
Sales and Distribution Expenses
Rent
Professional Fees
General Expenses
Donations
Balances as at 31st March, 2018
1
Investments
2
3
4
5
6
7
8
9
Trade Receivables*
Loans and Advances
Deposits
Trade and Other Payables*
Other Non-Current Liabilities
Other Non-Current Assets
Other Current Assets
Financial Guarantees
10
Performance Guarantees
Note: Figures in italic represents Previous Year's amounts
*
Include reimbursements
1,368
1,940
34,973
67,092
-
26,462
5,944
(1,955)
20,042
14,954
1,586
1,586
9,898
3,044
-
-
-
-
850
272
-
-
-
27
-
-
301
1,391
747
528
-
-
1,56,328
1,21,355
1,388
1,277
18,885
13,006
239
175
1,680
659
504
-
1,250
-
75
-
49,106
41,715
1,689
1,163
126
231
-
92
-
-
(10)
6
239
347
249
231
721
730
4,656
2,484
849
637
-
-
-
-
2,585
2,619
11
14
42
35
12
7
-
-
3,720
3,502
111
49
-
-
608
618
666
489
-
-
-
-
-
-
1,522
1,532
-
137
Key Managerial
Personnel/
Relative
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
97
85
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Others
(` in crore)
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
426
337
-
-
-
-
-
-
-
-
-
-
719
604
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,494
2,171
34,973
67,184
-
26,462
5,934
(1,949)
20,281
15,301
1,835
1,817
10,619
3,774
4,656
2,484
849
637
1,276
609
97
85
2,585
2,646
11
14
343
1,426
759
535
719
604
1,60,048
1,24,857
1,499
1,326
18,885
13,006
847
793
2,346
1,148
504
-
1,250
-
75
-
50,628
43,247
1,689
1,300
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
(iii) Disclosure in Respect of Major Related Party Transactions during the year :
327
(` in crore)
Particulars
Relationship
2017-18
2016-17
1
2
3
4
Purchase of Property, Plant and Equipment 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 Utilities and Power Private Limited
Sikka Ports and Terminals Limited ( Formerly Reliance Ports and
Terminals 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
Reliance Retail Ventures Limited
Jio Payments Bank Limited
Sale / Redemption of Investments
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 Progressive Traders Private Limited
Reliance Prolific Traders Private Limited
Reliance Universal Traders Private Limited
Net Loans and Advances, Deposits Given / (Returned)
Dreketi S.A.^
Reliance Commercial Dealers Limited
Reliance Corporate IT Park Limited
Reliance Ethane Holding Pte Limited
Reliance Industrial Investments and Holdings Limited
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Joint Venture
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
-
1,334
-
2
30
1
8
1
110
7
-
-
-
-
-
644
-
31,340
-
-
-
1,296
693
-
-
-
1,000
-
-
-
-
-
-
-
-
-
1
64
2,164
(3)
4,092
52
1,753
96
6
33
-
4
-
191
36
4
21
10,499
239
591
20,497
498
33,660
23
11
3
58
133
160
171
524
-
92
3263
404
368
19271
1566
71
1416
103
-
-
(2,698)
3
1,362
^
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, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
328
Particulars
Relationship
2017-18
2016-17
(` in crore)
5
6
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
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.
East West Pipeline Limited ( Formerly Reliance Gas Transportation
Infrastructure Limited)
Gujarat Chemical Port Terminal Company Limited
Reliance Industrial Infrastructure Limited
Reliance Utilities and Power Private Limited
Sikka Ports and Terminals Limited ( Formerly Reliance Ports and
Terminals Limited)
Other Income
Gapco Kenya Limited*
Gapco Tanzania Limited*
Gapco Uganda Limited*
Jio Information Solutions Limited (Formerly Reliance Textiles 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 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 Petro Marketing Limited
Reliance Sibur Elastomers Private Limited
Reliance Strategic Investments Limited
Reliance Ventures Limited
RIL USA, Inc.
East West Pipeline Limited ( Formerly Reliance Gas Transportation
Infrastructure Limited)
Gujarat Chemical Port Terminal Company Limited
* These companies are not related parties for FY 2017-18.
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
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
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
5
(34)
(1,296)
(89)
1,040
(10)
-
-
882
14
39
649
5,852
1,243
20
9,978
20
275
1,067
35
2
1
200
1
-
-
-
13
7
1
257
1
7
191
902
-
27
3
37
11
71
54
3
218
10
(482)
34
1,296
(1,465)
(5)
9
(3)
1,522
404
13
2
5
2748
828
528
6,399
13
229
2,276
31
1
2
285
15
2
3
1
-
7
-
327
-
13
213
663
1
47
1
-
19
267
16
6
204
6
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
Particulars
Relationship
2017-18
2016-17
329
(` in crore)
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Reliance Utilities and Power Private Limited
Sikka Ports and Terminals Limited ( Formerly Reliance Ports and
Terminals Limited)
Purchases / Material Consumed
Recron (Malaysia) Sdn. Bhd.
Reliance Commercial Land & Infrastructure Limited
Reliance Industries (Middle East) DMCC
Reliance Gas Pipelines Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Industrial Infrastructure Limited
Reliance Utilities and Power Private Limited
Sikka Ports and Terminals Limited ( Formerly Reliance Ports and
Terminals Limited)
Electric Power, Fuel and Water
Reliance Utilities and Power Private Limited
Hire Charges
East West Pipeline Limited ( Formerly Reliance Gas Transportation
Infrastructure Limited)
Associate
Associate
Associate
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate
15
2
3
1
-
-
8,838
1,060
109
21
1
589
17
-
3
1
1
20
3023
-
90
13
4
623
Associate
4,656
2,484
Associate
Associate
Associate
Associate
Gujarat Chemical Port Terminal Company Limited
Reliance Industrial Infrastructure Limited
Sikka Ports and Terminals Limited ( Formerly Reliance Ports and
Terminals Limited)
Employee Benefits Expense
Subsidiary
Reliance Retail Limited
Subsidiary
Reliance Corporate IT Park Limited
IPCL Employees Provident Fund Trust
Others*
Reliance Industries Limited Vadodara Units Employees Superannuation Fund Others*
Others*
Reliance Employees Provident Fund Bombay
Others*
Reliance Industries Limited Staff Superannuation Scheme
Reliance Industries Limited Employees Gratuity Fund
Others*
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
Sikka Ports and Terminals Limited ( Formerly Reliance Ports and
Terminals Limited)
Subsidiary
Subsidiary
Associate
Associate
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
Relative of KMP
* Also include employee contribution.
475
-
40
334
15
835
110
2
287
11
16
15
20
20
9
3
12
13
3
2
203
2
45
387
19
253
103
2
222
10
-
15
17
17
7
3
12
11
2
1
-
-
86
2,499
26
1
52
2,567
7
8
9
10
11
12
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
Relationship
2017-18
2016-17
(` in crore)
330
Particulars
13
14
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
15 General Expenses
Indiawin Sports Private Limited
Reliance Commercial Dealers Limited
Reliance Retail Limited
Reliance Jio Infocomm Limited
Sikka Ports and Terminals Limited ( Formerly Reliance Ports and
Terminals Limited)
16 Donations
Hirachand Govardhandas Ambani Public Charitable Trust
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Reliance Foundation Youth Sports
Reliance Foundation Institution of Education and Research
(iv) Balances as at 31st March, 2018
Associate
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Others
Others
Others
Others
Others
Particulars
Relationship
1
2
Loans and Advances
Dreketi S.A.^
Reliance Corporate IT Park Limited
Reliance Ethane Holding Pte Limited
Reliance Industrial Investments and Holdings Limited
Reliance Jio Messaging Services Private Limited
Reliance Prolific Traders Private Limited
Reliance Strategic Investments Limited
Reliance Ventures Limited
Reliance Industries (Middle East) DMCC
Deposits
Reliance Commercial Dealers Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Utilities and Power Private Limited
Sikka Ports and Terminals Limited ( Formerly Reliance Ports and Terminals
Limited)
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
11
-
300
1
35
7
-
659
74
14
12
2
6
672
38
1
14
26
1,364
1
30
5
7
485
36
-
5
2
19
561
22
-
As at
31st March,
2018
(` in crore)
As at
31st March,
2017
1
3,299
-
12,703
-
-
1,737
1,140
5
239
137
118
353
-
1,135
3
8,611
35
1,296
1,826
100
-
175
147
118
353
^
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, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
331
Particulars
Relationship
3
Financial Guarantees
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
31.1 Compensation of Key Managerial Personnel
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
As at
31st March,
2018
(` in crore)
As at
31st March,
2017
184
5
19,553
1,535
26,504
847
478
1,522
195
5
19,455
1,583
19,719
422
336
1,532
The remuneration of director and other member of Key Managerial 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
2017-18
(` in crore)
2016-17
91
2
-
2
-
95
82
2
-
-
-
84
32.1 Disclosure of the Company’s Interest in Oil and Gas Joint Arrangements (Joint Operation):
Sr.
No.
Name of the
Fields in the
Joint Ventures
Company’s %
Interest
2017-18 2016-17
Partners and their Participating Interest (PI)
Country
1
2
3
4
5
6
7
8
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*
KG - DWN - 98/3
66.67%
60%
60% BP Exploration (Alpha) Limited - 33.33%
60% Niko (NECO) Limited - 10% ;
BP Exploration (Alpha) Limited - 30%
India
India
India
India
GS - OSN - 2000/1
CB-ONN-2003/1
Block M-17#
90%
70%
-
90% Hardy Exploration and Production (India) Inc. - 10%
70% BP Exploration (Alpha) Limited - 30%
96% United National Resources Development Services Company
India
India
Myanmar
Limited (UNRD) - 4%
Block M-18#
-
96% United National Resources Development Services Company
Myanmar
Limited (UNRD) - 4%
*
During the year the assignment of 6.67% PI of Niko(NELPIO) Limited to the Company has been approved by Government of India, hence change in the
Company’s interest.
# Myanmar Blocks M-17 & M-18 were relinquished during the year on completion of Technical Evaluation Assessment Period.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
332
32.2 Quantities of Company’s Interest (on gross basis) in Proved Reserves and Proved Developed Reserves:
Particulars
Oil:
Opening balance
Revision of estimates
Production
Closing balance
Particulars
Gas:
Opening balance
Revision of estimates
Production
Closing balance
Proved Reserves in India
(Million MT#)
Proved Developed Reserves
in India (Million MT#)
2017-18
2016-17
2017-18
2016-17
3.71
(0.04)
(0.28)
3.39
4.32
(0.26)
(0.35)
3.71
0.58
(0.04)
(0.28)
0.26
1.05
(0.12)
(0.35)
0.58
Proved Reserves in India
(Million M3#)
Proved Developed Reserves
in India (Million M3#)
2017-18
2016-17
2017-18
2016-17
60,951
(2,563)
(1,909)
56,479
71,731
(8,500)
(2,280)
60,951
14,297
(1,187)
(1,909)
11,201
14,582
1,995
(2,280)
14,297
# 1 MT = 7.5 bbl, cubic meter (M3) = 35.315 cubic feet and 1 cubic feet = 1000 BTU
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.
32.3
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 the arbitration is
currently underway. Pending decision of the arbitration, the demand from the GOI of $ 148 million being the Company’s Share (total
demand $ 247 million) towards additional Profit Petroleum has been considered as contingent liability.
32.4 (a)
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 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. The arbitration hearings are over and the arbitral award is awaited.
(b)
In supersession of the Ministry’s Gazette notification no. 22011/3/2012-ONG.D.V. dated 10th January, 2014, the GOI
notified the New Domestic Natural Gas Pricing Guidelines, 2014, on 26th October, 2014. Consequent to the aforesaid
dispute referred to under 32.3 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 customer to Gas Pool
Account is ` 295 crore (net) as at 31st March, 2018 is disclosed under Other Non -Current Assets (refer note 4). Revenue
has been recognized at the GOI notified prices in respect of gas quantities sold from D1D3 field from 1st November, 2014.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
333
(c)
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 Contract 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 Arbitration
Tribunal by majority issued a final partial award (“FPA”), and separately, two dissenting opinions in the matter on 12
October 2016. The FPA does not conclude these proceedings as: (1) the Claimants have challenged certain parts of the
FPA before the English Commercial Court and the Court has delivered its judgment on 16 April 2018 wherein it decided
one of the issues in Claimants favour and this issue will be now remitted back to the Tribunal for determination; and (2)
after this determination there are two further phases of the arbitration to be determined by the Tribunal viz. CRL Increase
and Quantification of Final Award yet to take place. The Company has been notified by Government of its computation
of the purported share of Government’s Profit Petroleum and Royalty alleged to be payable by the Contractor pursuant
to the Government’s interpretation of the FPA. In Company’s view Government’s demand notice is premature since
the quantification of liabilities (if any) of the parties arising out of FPA have to be determined by the Arbitration Tribunal
after the Parties have made their respective submissions on CRL increase and quantification. The Company has already
responded to the Government’s demand notice appropriately. The Company is in the process of reviewing the English court
judgment and will take appropriate next steps.
(d)
NTPC had filed a suit for specific performance of a contract for supply of natural gas by the Company 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 the
Company is of the view that NTPC’s claim lacks merit and no binding contract for supply of gas was executed between
NTPC and the Company.
(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.
32.5 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 (E&E) cost
Exploration Expenditure written off
Other Exploration Cost
Exploration Cost for the Year
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
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
44
14
58
-
56
7
(1)
62
12
14
35
46
23
69
46
41
8
(24)
71
81
23
58
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
334
33. CONTINGENT LIABILITIES AND COMMITMENTS
(I) Contingent Liabilities
(A)
Claims against the Company / disputed liabilities not
acknowledged as debts*
(i)
(ii)
In respect of Joint Ventures
In respect of Others
(B) Guarantees
(i)
(ii)
(iii)
Guarantees to Banks and Financial Institutions against credit
facilities extended to third parties and other Guarantees
(a)
In respect of Joint Ventures
(b)
In respect of Others
Performance Guarantees
(a)
(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)
(II) Commitments
In respect of Others
(A)
Estimated amount of contracts remaining to be executed on
capital account and not provided for:
(i)
In respect of Joint Ventures
(ii)
In respect of Others
Uncalled liability on shares and other investments partly paid
(B)
(C) Other Commitments
(i)
Other Commitments - Investments
2017-18
(` in crore)
2016-17
1,104
862
-
50,628
-
1,689
20
3,670
1,142
2,460
-
43,247
-
1,300
20
10,826
-
383
2,986
2,535
3,000
476
901
2,150
11,340
-
*
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 2015-16. The total outstanding
demand upto AY 2015-16 amounts to ` 11 crore as on date (i.e. 27th April, 2018). Based on the decisions of the Appellate
authorities and the interpretations of other relevant provisions of the Income tax Act, 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 had passed an Order under section 11B of the Securities and Exchange Board of
India Act, 1992 on 24th March, 2017 on a Show Cause Notice dated 16th December, 2010 issued to the Company in the matter
concerning trading in the shares of Reliance Petroleum Limited 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
the Company 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 filed an appeal against the said Order before the
Hon’ble Securities Appellate Tribunal (‘SAT’). SAT has stayed the direction on disgorgement till the next date of hearing and the
prohibition from dealing in equity derivatives in the Futures and Options segment expired on 23rd March, 2018.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
335
34. CAPITAL MANAGEMENT
The Company adheres to a disciplined Capital Management framework, the pillars of which are as follows:
a)
b)
c)
Maintain diversity of sources of financing and spreading the maturity across tenure buckets in order to minimize liquidity
risk.
Maintain AAA rating domestically and investment grade rating internationally by ensuring that the financial strength of the
Balance Sheet is preserved.
Manage financial market risks arising from foreign exchange, interest rates and commodity prices, and minimise the impact
of market volatility on earnings.
d)
Leverage optimally in order to maximise shareholder returns while maintaining strength and flexibility of Balance Sheet.
This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market
conditions and interest rates environment.
The Net Gearing Ratio at the 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 Ratio (A/B)
As at
31st March, 2018
1,16,881
67,566
49,315
3,14,647
0.16
(` in crore)
As at
31st March, 2017
1,07,446
69,337
38,109
288,313
0.13
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
336
35. FINANCIAL INSTRUMENTS
A.
Fair Value Measurement Hierarchy
Particulars
Financial Assets
At Amortised Cost
Investments*
Trade Receivables
Cash and Cash Equivalents
Loans
Other Financial Assets
At FVTPL
Investments
Other Financial Assets
At FVTOCI
Investments
Financial Liabilities
At Amortised Cost
Borrowings
Trade Payables
Other Financial Liabilities
At FVTPL
Other Financial Liabilities
At FVTOCI
Other Financial Liabilities
As at 31st March, 2018
As at 31st March, 2017
Carrying
Amount
Level of
input used in
Level 1
Level 2
Level 3
Carrying
Amount
Level of
input used in
Level 1
Level 2
Level 3
(` in crore)
4,127
10,460
2,731
21,232
2,752
-
-
-
-
-
-
-
-
-
-
40,003
1,104
34,461
-
5,542
1,104
-
-
-
-
-
-
-
3,324
5,472
1,754
15,318
2,792
-
-
-
-
-
-
-
-
-
-
36,910
580
33,866
-
3,044
580
-
-
-
-
-
-
-
24,586
22,120
2,453
13
30,683
25,715
4,958
10
1,16,881
88,675
26,793
1,327
84
-
-
-
-
-
-
-
-
1,327
84
- 1,07,446
68,161
-
34,825
-
-
-
2,952
-
-
-
-
-
-
-
-
-
2,952
-
-
-
-
-
-
*
Exclude Group Company investments [`1,56,506 crore (Previous Year `1,21,533 crore)] measured at cost (Refer Note 2.1).
The financial instruments are categorized into three 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;
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly; and
Level 3: Inputs based on unobservable market data.
Valuation Methodology
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:
a)
b)
c)
d)
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 observable forward
exchange rates and yield curves at the balance sheet date.
The fair value of over-the-counter Foreign Currency Option contracts is determined using the Black Scholes
valuation model.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
337
e)
Commodity derivative contracts are valued using 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.
B.
Financial Risk Management
The different types of risks the company is exposed to are market risk, commodity risk, credit risk and liquidity risk. The
Company uses derivative financial instruments such as forwards, options and swap contracts to minimise any adverse
effect on its financial performance. All such activities are undertaken within an approved Risk Management Policy
framework.
i)
a)
Market Risk
Foreign Currency Risk
Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of
changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which are
denominated in currencies other than Indian Rupee.
The following table shows foreign currency exposures in US Dollar, Euro and Japanese Yen on financial instruments at
the end of the reporting period. The exposure to all other foreign currencies are not material.
Particulars
Borrowings
Trade and Other Payables
Trade and Other Receivables
Derivatives
- Forwards & Futures
- Currency Swaps
- Options
Exposure
Foreign Currency Exposure
(` in crore)
As at 31st March, 2018
As at 31st March, 2017
USD
69,558
72,590
(7,405)
EUR
9,757
1,858
(92)
JPY
1,722
56
-
USD
92,922
59,017
(6,281)
EUR
8,498
1,545
(55)
JPY
1,673
70
565
(37,803)
876
(3,855)
93,961
(11,285)
-
-
238
(1,695)
-
-
83
(47,854)
1,015
1,076
99,895
(9,136)
-
-
852
(1,702)
-
-
606
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, 2018
As at 31st March, 2017
USD
EUR
JPY
USD
EUR
JPY
(630)
357
(273)
630
(357)
273
11
(14)
(3)
(11)
14
3
-
(1)
(1)
-
1
1
8
(309)
(301)
(8)
309
301
5
(14)
(9)
(5)
14
9
-
(6)
(6)
-
6
6
*
Include natural hedges arising from foreign currency denominated earnings, for which hedge accounting has not been implemented.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
338
b.
Interest Rate Risk
The company’s exposure to the risk of changes in market interest rate relates to the floating rate debt obligations
and derivative products taken to mitigate interest rate risk.
The exposure of the Company’s borrowings and derivatives to interest rate changes at the end of the reporting
period are as follows:
Interest Rate Exposure
Particulars
Borrowings
Non-Current - Floating (Includes Current Maturities)*
Non-Current - Fixed (Includes Current Maturities)*
Current#
Total
Derivatives
Foreign Currency Interest Rate Swaps
Rupees Interest Rate Swaps
Currency Swaps
Total
*
Include ` 384 crore (Previous Year ` 424 crore) as Prepaid Finance Charges.
# Include ` 425 crore as Commercial Paper Discount.
Sensitivity analysis of 1% change in Interest rate
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
52,583
49,443
15,664
1,17,690
8,239
17,265
876
26,380
55,806
29,484
22,580
1,07,870
25,987
9,995
1,015
36,997
(` in crore)
Particulars
Impact on Equity
Impact on P&L
Total Impact
ii.
Commodity Price Risk
Interest rate Sensitivity
As at
31st March, 2018
As at
31st March, 2017
Up Move
Down Move
Up Move
Down Move
(307)
(192)
(499)
307
192
499
(148)
(116)
(264)
148
116
264
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 as well as Exchange Traded Futures, Options and Swap contracts to hedge its
commodity and freight exposure.
iii) 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 receivables from customers.
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
339
The company has a prudent and conservative process for managing its credit risk arising in the course of its
business activities. Credit risk is actively managed through Letters of Credit, Bank Guarantees, Parent Company
Guarantees, advance payments and factoring & forfaiting without recourse to the Company. The company restricts
its fixed income investments in liquid securities carrying high credit rating.
iv)
Liquidity Risk
Liquidity risk arises from the Company’s inability to meet its cash flow commitments on the due date. The company
maintains sufficient stock of cash, marketable securities and committed credit facilities. The company accesses
global and local 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
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
3-5
Years
Above
5 Years
Total
Maturity Profile as at 31 March, 2018
(` in crore)
Borrowings
Non-Current*
Current#
Total
Derivative Liabilities
Forwards
Options
Currency Swaps
Interest Rate Swaps
Total
*
#
Include ` 384 crore as Prepaid Finance charges
Include ` 425 crore as Commercial Paper discount
829
8,713
9,542
770
27
-
4
801
3,727
3,501
7,228
15,607
3,450
19,057
37,179
-
37,179
16,991
-
16,991
27,693
-
27,693
1,02,026
15,664
1,17,690
26
18
-
5
49
32
53
44
10
139
-
-
201
11
212
-
-
-
96
96
-
-
-
-
-
828
98
245
126
1,297
(` in crore)
Particulars
Borrowings
Non-Current**
Current
Total
Derivative Liabilities
Forwards
Options
Currency Swaps
Interest Rate Swaps
Total
Maturity Profile as at 31 March, 2017
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
3-5
Years
Above
5 Years
Total
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
33,145
-
33,145
16,484
-
16,484
29,518
-
29,518
85,290
22,580
1,07,870
372
62
42
175
651
-
-
42
51
93
-
-
200
49
249
-
-
-
-
-
1,867
159
284
276
2,586
** Include ` 424 crore as Prepaid Finance charges
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
340
C. Hedge Accounting
The company’s business objective includes safe-guarding its 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, over-the-counter 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 on the balance sheet date.
Disclosure of effect of Hedge Accounting:
A. Fair Value Hedge
Hedging Instruments
Particulars
Foreign Currency Risk
Commodity Price Risk
Derivative Contracts
Foreign Currency Risk
Foreign Currency Risk Component -
Borrowings
Commodity Price Risk
Derivative Contracts
Hedged Items
Particulars
Foreign Currency Risk
Commodity Price Risk
Firm Commitments for purchase of feedstock and freight
Firm Commitments for sale of products
Inventories
Foreign Currency Risk
Export Firm Commitments
Commodity Price Risk
Firm Commitments for purchase of feedstock and freight
Firm Commitments for sale of products
Inventories
Nominal
Value
Quantity
(Kbbl)
Carrying Amount
Assets
Liabilities
Changes
in Fair Value
(` in crore)
Line Item in
Hedge
Maturity
Balance Sheet
As at 31st March, 2018
-
-
-
-
-
-
20,675
2,35,175
29
593
(758)
34,101
-
-
32,511
1,590
18,966
2,34,585
366
11
355
Carrying Amount
Assets
Liabilities
Changes
in Fair Value
-
55
325
3,431
-
29
-
-
-
208
337
213
April 2018 to
December
2020
Other Financial
Assets / Liabilities
As at 31st March, 2017
April 2017 to
March 2018
Borrowings -
Non-Current
April 2017 to
December
2020
Other Financial
Assets / Liabilities
(` in crore)
Line Item in Balance Sheet
As at 31st March, 2018
Other Current Assets / Liabilities
Other Current Assets
Inventories
As at 31st March, 2017
-
1,590
1,590 Other Financial Liabilities - Current
3
-
4,149
250
116
-
247
116
(8)
Other Current Assets / Liabilities
Other Current Liabilities
Inventories
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
341
(` in crore)
Line Item in Balance Sheet
As at 31st March, 2018
As at 31st March, 2017
B. Cash Flow Hedge
Hedging Instruments
Particulars
Nominal
Value
Carrying Amount
Assets
Liabilities
Changes in
Fair Value
Hedge
Maturity
Foreign Currency Risk
-
-
-
-
-
-
Foreign Currency Risk
Foreign Currency Risk
Component - Borrowings
Hedged Items
Particulars
37,221
35,485
1,736
April 2017 to
March 2018
Borrowings - Non-Current
Nominal Value
Changes in Fair Value
Foreign Currency Risk
-
-
(` in crore)
Hedge Reserve
Line Item in
Balance Sheet
As at 31st March, 2018
-
As at 31st March, 2017
Foreign Currency Risk
Highly Probable Exports
37,221
1,736
1,736
Other Equity
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
342
36. As per Ind AS 108- “Operating Segment”, segment information has been provided under the Notes to Consolidated Financial
Statements. Please refer note 24 for revenue from sale of products.
37.
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, 2018
Sr.
No.
1
2
3
4
5
6
7
Particulars
Reliance Global Energy Services (Singapore)
Reliance Global Energy Services
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.
38.
DETAILS OF RESEARCH AND DEVELOPMENT EXPENDITURE
Particulars
Capital
Revenue
Sr.
No.
a)
b)
Total
As at
31st March, 2018
-
6
19,553
1,368
23,575
2,151
570
(` in crore)
As at
31st March, 2017
259
6
19,455
1,428
23,655
2,140
567
2017-18
1,026
798
1,824
(` in crore)
2016-17
593
855
1,448
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
343
39.
EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have recommended dividend of ` 6.00 per fully paid up equity share of ` 10/- each, aggregating ` 4,281
crore, including ` 728 crore dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on
31st March, 2018. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date /
book closure.
40.
The figures for the corresponding previous year have been regrouped / reclassified wherever necessary, to make them comparable.
41.
APPROVAL OF FINANCIAL STATEMENTS
The Financial Statements were approved for issue by the Board of Directors on April 27, 2018.
As per our Report of even date
For and on behalf of the Board
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
Mumbai
Date : April 27, 2018
- Chairman & Managing Director
Executive Directors
Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Shumeet Banerji
Notes to the Standalone Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Standalone Financial Statements
Financial Statements
Consolidated
345 / Independent Auditors’ Report on Consolidated Financial Statements
350 / Balance Sheet
351 / Statement of Profit and Loss
352 / Statement of Changes in Equity
354 / Cash Flow Statement
356 / Notes to the Consolidated Financial Statements
421 /
Salient Features of Financial Statements of Subsidiary / Associates /
Joint Ventures
Corporate Overview Management Review Governance Financial Statements 274-425 Notice
Integrated Annual Report 2017–18
Consolidated Financial Statements
345
Independent Auditors’ Report
To the Members of Reliance Industries Limited
Auditor’s Responsibility
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”), its subsidiaries (the Holding Company
and its subsidiaries together referred to as “the Group”), its
associates and joint ventures comprising of the Consolidated
Balance Sheet as at March 31, 2018, the Consolidated Statement
of Profit and Loss (including Other Comprehensive Income),
the Consolidated Cash Flow Statement, the Consolidated
Statement of Changes in Equity for the year then ended, and a
summary of significant accounting policies and other explanatory
information (hereinafter referred to as “the Consolidated Financial
Statements”).
Management’s Responsibility for the Consolidated
Financial Statements
The Holding Company’s Board of Directors is responsible for
the preparation of these Consolidated Financial Statements
in terms of the requirement of the Companies Act, 2013 (“the
Act”) that give a true and fair view of the Consolidated Financial
Position, Consolidated Financial Performance (including Other
Comprehensive Income), Consolidated Cash Flow Statement
and Consolidated Statement of Changes in Equity of the Group
including its associates and joint ventures in accordance with
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act,
read with the Companies (Indian Accounting Standard) Rules,
2015, as amended.
The respective Board of Directors of the companies included in
the Group and of its associates and joint ventures are responsible
for maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
Group and of its associates and joint ventures and for preventing
and detecting frauds and other irregularities; the 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 Consolidated Financial
Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error, which have
been used for the purpose of preparation of the Consolidated
Financial Statements by the Board of Directors of the Holding
Company, as aforesaid.
Our responsibility is to express an opinion on these Consolidated
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 in
accordance with the Standards on Auditing, issued by the Institute
of Chartered Accountants of India, as 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 Financial
Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the Consolidated Financial
Statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material
misstatement of the Consolidated Financial Statements, whether
due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Holding
Company’s preparation of the Consolidated Financial Statements
that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the
Holding Company’s Board of Directors, as well as evaluating the
overall presentation of the Consolidated Financial Statements.
We believe that the audit evidence obtained by us and the audit
evidence obtained by the other auditors in terms of their reports
referred to in sub-paragraph (b)(2) of the Other Matters paragraph
below, is sufficient and appropriate to provide a basis for our audit
opinion on the Consolidated Financial Statements.
Opinion
In our opinion and to the best of our information and according
to the explanations given to us and based on the consideration of
reports of other auditors on separate financial statements and on
the other financial information of the subsidiaries, associates and
joint ventures, the aforesaid Consolidated Financial Statements
give the information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India of the Consolidated State
of Affairs of the Group, its associates and joint ventures as
at March 31, 2018, their Consolidated Profit (including Other
Comprehensive Income), their Consolidated Cash Flows and
Consolidated Statement of Changes in Equity for the year ended
on that date.
346
Independent Auditors’ Report
Other Matters
(a)
The Consolidated Financial Statements include the Holding
Company’s proportionate share in an unincorporated
joint operation relating to total assets of ` 319 crore as
at March 31, 2018, total expenditure of ` 446 crore, the
elements making up the Cash Flow Statement for the year
ended March 31, 2018 and related disclosures in respect
of an unincorporated joint operation which is based
on statements from the operators and certified by the
management.
(b)
(1)
(2)
The Consolidated Financial Statements includes 7
subsidiaries which reflect total assets of ` 95,122
crore as at March 31, 2018, total revenues of ` 69,498
crore and net cash inflow of ` 127 crore for year then
ended and the financial statements of 3 associates
which reflect Group’s share of net profit of ` 4 crore
for the year ended on March 31, 2018, which have
been audited by one of the joint auditor, individually or
together with another auditor.
We did not audit the financial statements and other
financial information, in respect of 117 subsidiaries
whose financial statements include total assets of `
3,69,266 crore as at March 31, 2018, total revenues
of ` 82,787 crore and net cash inflow of ` 413
crore for the year ended on that date and financial
statements and other financial information of 27
associates and 16 joint ventures which reflects
Group’s share of net profit of ` 2 crore for the year
ended March 31, 2018. These financial statements
and other financial information have been audited
by other auditors, whose financial statements, other
financial information and auditor’s reports have been
furnished to us by the management. Our opinion on
the Consolidated Financial Statements, in so far as
it relates to the amounts and disclosures included
in respect of these subsidiaries, joint ventures and
associates, and our report in terms of sub-sections
(3) of Section 143 of the Act, in so far as it relates
to the aforesaid subsidiaries, joint ventures and
associates, is based solely on the reports of such
other auditors.
(3)
The Consolidated Financial Statements includes 2
subsidiaries, whose financial statements reflect total
assets of ` Nil as at March 31, 2018, total revenues
of ` 743 crore and net cash outflow of ` 130 crore
for the year then ended and the financial statements
of 2 joint ventures and 4 associates which reflects
Group’s share of net profit of ` 53 crore for the year
ended March 31, 2018, which are certified by the
Management. In our opinion and according to the
information and explanations given to us by the
Management, these financial statements and other
financial information are not material to the Group.
Our opinion on the Consolidated Financial
Statements, and our report on Other Legal and
Regulatory Requirements above, 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 and other
financial information certified by the Management.
(c)
The comparative financial information of the Group
including its associates and joint ventures for the year
ended March 31, 2017 prepared in accordance with
Indian Accounting Standard (Ind AS), included in these
Consolidated Financial Statements, have been audited by
the predecessor auditors. The report of the predecessor
auditor on the comparative financial information dated April
24, 2017 expressed an unmodified opinion.
Report on Other Legal and Regulatory Requirements
As required by Section 143 (3) of the Act, based on our audit and
on the consideration of report of the other auditors on separate
financial statements and the other financial information of
subsidiaries, associates and joint ventures, as referred in the
‘Other Matters’ paragraph, we report, to the extent applicable,
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 purpose of our audit of the aforesaid
Consolidated Financial Statements;
In our opinion, proper books of account as required by
law relating to preparation of the aforesaid Consolidated
Financial Statements have been kept so far as it appears
from our examination of those books and reports of the
other auditors;
The Consolidated Balance Sheet, Consolidated Statement
of Profit and Loss (including the Statement of Other
Comprehensive Income), the Consolidated Cash Flow
Statement and Consolidated Statement of Changes in
Equity dealt with by this Report are in agreement with the
books of account maintained for the purpose of preparation
of the Consolidated Financial Statements;
(d)
In our opinion, the aforesaid Consolidated Financial
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
Independent Auditors’ Report
(e)
(f)
(g)
Statements comply with the Accounting Standards
specified under Section 133 of the Act, read with
Companies (Indian Accounting Standard) Rules, 2015, as
amended;
On the basis of the written representations received from
the directors of the Holding Company as on March 31, 2018
taken on record by the Board of Directors of the Holding
Company and the reports of the statutory auditors who are
appointed under Section 139 of the Act, of its subsidiaries,
associates and joint ventures incorporated in India, none
of the directors of the Group’s companies, its associates
and joint ventures incorporated in India is disqualified as on
March 31, 2018 from being appointed as a director in terms
of Section 164 (2) of the Act.
With respect to the adequacy and the operating
effectiveness of the internal financial controls over financial
reporting of the Holding Company, its subsidiaries,
associates and joint ventures incorporated in India, refer to
our separate report in “Annexure 1” to this report;
With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the
explanations given to us and based on the consideration
of the report of the other auditors on separate financial
statements as also the other financial information of the
subsidiaries, associates and joint ventures, as noted in the
‘Other Matters’ paragraph:
Consolidated Financial Statements
347
i.
ii.
iii.
The Consolidated Financial Statements disclose the
impact of pending litigations on its Consolidated
Financial Position of the Group, its associates and
joint ventures – Refer Note 30 to the Consolidated
Financial Statements;
Provision has been made in the Consolidated
Financial Statements, as required under the
applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts
including derivative contracts;
There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Holding Company,
its subsidiaries, associates and joint ventures
incorporated in India during the year ended March 31,
2018 except a sum of ` 19.02 crore, which are held in
abeyance due to pending legal cases.
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Mumbai
Date: April 27, 2018
Integrated Annual Report 2017–18
348
Annexure 1
To the Independent Auditor’s Report on the Consolidated Financial Statements of
Reliance Industries Limited
Report on the Internal Financial Controls under
Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
In conjunction with our audit of the Consolidated Financial
Statements of Reliance Industries Limited as of and for the
year ended March 31, 2018, we have audited the internal
financial controls over financial reporting of Reliance Industries
Limited (hereinafter referred to as the “Holding Company”),
its subsidiaries, its associates and joint ventures, which are
companies 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, its associates and joint ventures, which are
companies incorporated in India, are responsible for establishing
and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the Holding
Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India. These responsibilities include the
design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the
orderly and efficient conduct of its business, including adherence
to the 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 Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Holding
Company its subsidiaries, its associates and joint ventures, which
are companies incorporated in India, internal financial controls
over financial reporting based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”)
and the Standards on Auditing as specified under Section 143(10)
of the Companies Act, 2013, to the extent applicable to an audit
of internal financial controls, both issued by Institute of Chartered
Accountants of India. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting
was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence
about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit
of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit
evidence obtained 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 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 the internal financial control over financial
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice Consolidated Financial Statements
349
Annexure 1
To the Independent Auditor’s Report of even date on the Consolidated Financial
Statements of Reliance Industries Limited
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 Other Matters
paragraph, the Holding Company, its subsidiaries, its associates
and joint ventures, which are companies incorporated in India,
have, maintained 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, 2018, based on the internal control over
financial reporting criteria established by the Holding Company
considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
Other Matters
Our report under Section 143(3)(i) of the Act on the adequacy
and operating effectiveness of the internal financial controls over
financial reporting of the Holding Company, in so far as it relates
to separate financial statements of 80 subsidiaries, 13 associates
and 14 joint ventures, which are companies incorporated in India,
is based on the corresponding reports of the auditors of such
subsidiaries, associates and joint ventures incorporated in India.
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Mumbai
Date: April 27, 2018
Vikas Kumar Pansari
Partner
Membership No. 093649
Integrated Annual Report 2017–18 350
Balance Sheet
As at 31st March, 2018
ASSETS
Non-Current Assets
Property, Plant and Equipment
Capital Work-in-Progress
Goodwill
Other Intangible Assets
Intangible Assets Under Development
Financial Assets
Investments
Loans
Deferred Tax Assets (Net)
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 & 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 & Liabilities
Significant Accounting Policies
See accompanying Notes to the Financial Statements
As per our Report of even date
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
Mumbai
Date : April 27, 2018
Notes
As at
31st March, 2018
(` in crore)
As at
31st March, 2017
1
1
1
1
2
3
4
5
6
7
8
9
10
11
13
14
15
16
17
4
18
19
20
21
3,16,031
1,66,220
5,813
82,041
20,802
25,259
2,668
5,075
8,653
6,32,562
60,837
57,603
17,555
4,255
2,327
8,448
32,761
1,83,786
8,16,348
5,922
2,87,584
3,539
1,44,175
8,542
20,210
2,906
29,618
2,05,451
37,429
1,06,861
1,25,151
43,179
1,232
3,13,852
5,19,303
8,16,348
1,70,483
2,50,377
4,892
23,151
74,460
25,639
2,708
5,537
8,279
5,65,526
48,951
57,260
8,177
3,023
996
8,535
19,871
1,46,813
7,12,339
2,959
2,60,750
2,917
1,52,148
9,025
20,137
2,353
26,735
2,10,398
31,528
76,595
1,04,541
20,882
1,769
2,35,315
4,45,713
7,12,339
1 to 39
For and on behalf of the Board
- Chairman & Managing Director
Executive Directors
Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Shumeet Banerji
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
Statement of Profit and Loss
For the year ended 31st March, 2018
INCOME
Value of Sales
Income from Services
Value of Sales & Services (Revenue)
Less: GST Recovered
Revenue from Operations
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 :
i.
ii.
iii.
iv.
Total Other Comprehensive Income for the Year (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
*
# After considering allotment of Bonus Equity Shares (Refer Note 27)
Items that will not be reclassified to Profit or Loss
Income Tax relating to items that will not be reclassified to Profit or Loss
Items that will be reclassified to Profit or Loss
Income Tax relating to items that will be reclassified to Profit or Loss
Owners of the Company
Non Controlling Interest
Owners of the Company
Non Controlling Interest
Owners of the Company
Non Controlling Interest
Includes exceptional item of ` 1,087 crore
Consolidated Financial Statements
351
Notes
2017-18
(` in crore)
2016-17
4,11,105
19,626
4,30,731
22,466
4,08,265
9,949*
4,18,214
2,07,448
68,628
(8,610)
16,588
9,523
8,052
16,706
50,512
3,68,847
49,367
59
49,426
10,098
3,248
36,080
495
(11)
(3,053)
934
(1,635)
34,445
36,075
5
(1,639)
4
34,436
9
60.94
60.89
3,18,749
11,431
3,30,180
-
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)
50.67#
50.57#
22
23
24
25
1
26
12
12
27
27
1 to 39
As per our Report of even date
For and on behalf of the Board
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
Mumbai
Date : April 27, 2018
- Chairman & Managing Director
Executive Directors
Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Shumeet Banerji
Integrated Annual Report 2017–18 352
Statement of Changes in Equity
For the year ended 31st March, 2018
A. Equity Share Capital
Balance at the beginning
Changes in Equity
Balance at the end
Changes in Equity
Balance at the end
of the reporting period i.e.
Share Capital during the
of the reporting period i.e.
Share Capital during the
of the reporting period i.e.
1st April, 2016
2,948
year 2016-17
31st March, 2017
year 2017-18
31st March, 2018
11
2,959
2,963
5,922
(` in crore)
B. Other Equity
As at 31st March, 2017
Share Application Money Pending
Allotment
Reserves and Surplus
Revaluation Reserve
Capital Reserve
Capital Redemption Reserve
Debenture Redemption Reserve
Share Based Payments Reserve
Share in Reserve of Associate
Statutory Reserves
Securities Premium Reserve
General Reserve
Retained Earnings
Balance at the
beginning of the
reporting period
i.e.1st April, 2016
Total
Comprehensive
Income for the
Year
Transfer to/
(from) Retained
Earnings
Others On Employee
Stock Options
(` in crore)
Balance at the end
of the reporting
period i.e.31st
March, 2017
8
-
-
-
(4)
4
835
291
96
1,120
18
10
182
42,983
1,75,214
4,480
-
-
-
-
-
-
-
-
-
29,901
-
-
-
-
-
-
66
-
24,790
(24,856)
-
-
35
-
-
-
-
-
-
(52)
-
(252)
-
-
-
-
-
(2)
-
-
693
-
-
-
870
291
96
1,120
16
10
248
43,624
2,00,004
9,273
5,194
(269)
687
2,60,750
Other Comprehensive Income*
3,371
1,823
Total
2,28,608
31,724
*
Include net movement in Foreign Currency Translation Reserve
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice Consolidated Financial Statements
353
Statement of Changes in Equity
For the year ended 31st March, 2018
Total
Comprehensive
Income for the
Year
Balance
at the
beginning of
the reporting
period i.e.1st
April, 2017
Dividends
Tax on
Dividend
Divestment
of Stake
Others
Transfer
to/ (from)
Retained
Earnings
On
Employee
Stock
Options
Issue of
Bonus
shares
(` in crore)
Balance at
the end of
the reporting
period
i.e.31st
March, 2018
As at 31st March, 2018
Share Application
Money Pending
Allotment
4
Reserves and
Surplus
Revaluation
Reserve
Capital Reserve
Capital
Redemption
Reserve
Debenture
Redemption
Reserve#
Share Based
Payments Reserve
Share in Reserve of
Associate
Statutory Reserves
Securities Premium
Reserve
870
291
96
1,120
16
10
248
43,624
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(543)
(327)
-
(36)
-
2
-
-
-
-
-
4,145
-
(10)
221
-
-
-
-
-
-
-
-
11
-
-
-
-
(4)
-
-
-
-
(48)
-
-
-
15
-
291
14
5,265
12
-
-
131
-
-
126 (2,912)
469
40,969
General Reserve
Retained Earnings
2,00,004
9,273
-
36,075
-
(3,255)
-
(661)
-
(421)
25,000
(29,031)
12
(144)
-
4
-
-
-
-
2,25,016
11,840
3,693
Other Comprehensive
Income*
5,194
(1,639)
-
-
138
Total
2,60,750
34,436
(3,255)
(661)
(862)
-
-
-
(1)
137 (2,960)
2,87,584
*
#
Include net movement in Foreign Currency Translation Reserve
The Debenture Redemption Reserve has not been created for a cumulative amount of ` 2,789 crore (Previous Year ` 1,943 crore) in terms of Section 71(4) of the
Companies Act, 2013 for Reliance Jio Infocomm Limited in view of inadequate profit.
As per our Report of even date
For and on behalf of the Board
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
Mumbai
Date : April 27, 2018
- Chairman & Managing Director
Executive Directors
Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Shumeet Banerji
Integrated Annual Report 2017–18 354
Cash Flow Statement
For the year ended 2017-18
A: CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Tax as per Statement of Profit and Loss
Adjusted for:
Share of (Profit) / Loss of Associates and Joint Ventures
(Profit) / Loss on Sale / Discard of Property, Plant and Equipment and Other
Intangible Asset (Net)
Depreciation / Amortisation and Depletion Expense
Effect of Exchange Rate Change
Profit on Divestment of Stake*
Gain on Financial Assets
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 Property, Plant and Equipment and Other Intangible Assets
Proceeds from disposal of Property, Plant and Equipment and Other 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
Net Cash Flow (used in) Investing Activities
(` in crore)
2017-18
2016-17
49,426
(59)
(22)
16,706
(2,059)
(1,146)
(4,160)
(1,021)
(2,952)
8,052
62,765
(21,991)
(10,474)
51,003
81,303
(9,844)
71,459
(73,953)
999
(5,33,984)
5,37,504
(1,220)
33
1,310
12
1,009
(68,290)
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
(66,292)
*
Includes Exceptional items of ` 1,087 crore from profit on divestment of stake in Gulf Africa Petroleum Corporation (GAPCO).
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
Cash Flow Statement
For the year ended 2017-18
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 Borrowing - Non current
Repayment of Borrowing - Non current
Borrowing - Current (Net)
Deferred Payment Liabilities
Dividends Paid (including Dividend Distribution Tax)
Interest Paid
Net Cash Flow (used in) / from Financing Activities
Net Increase / (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 9)
*
Include towards Unclaimed Dividend of ` 259 crore (Previous Year ` 241 crore).
Consolidated Financial Statements
355
(` in crore)
2017-18
2016-17
125
281
32
15
36,970
(19,813)
2,713
(739)
(3,916)
(17,669)
(2,001)
1,168
2,989
98
4,255
692
119
(6)
4
31,728
(18,542)
8,334
(739)
(53)
(12,920)
8,617
(8,125)
11,023
91
2,989
As per our Report of even date
For and on behalf of the Board
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
Mumbai
Date : April 27, 2018
- Chairman & Managing Director
Executive Directors
Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Shumeet Banerji
Integrated Annual Report 2017–18 356
A. Corporate Information
The Consolidated Financial Statements comprise financial statements of “Reliance Industries Limited” (“the Holding Company”)
and its subsidiaries (collectively referred to as “the Group”) for the year ended 31st March 2018.
The principal activities of the Group, its joint ventures and associates consist of Refining, Petrochemicals, Oil and Gas, Organised
Retail and Digital Services. Further details about the business operations of the Group are provided in Note 33 - Segment
Information.
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:
i.
ii.
iii.
Certain financial assets and liabilities (including derivative instruments),
Defined Benefit Plan’s - Plan Assets and
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.
The Consolidated Financial Statements comprises of Reliance Industries Limited and all its subsidiaries, being the
entities that it controls. Controls are assessed in accordance with the requirement of Ind AS 110 - Consolidated Financial
Statements.
The Consolidated Financial Statements are presented in Indian Rupees (`) and all values are rounded to the nearest crore
(` 00,00,000), except when otherwise indicated.
B.2 Principles of Consolidation
(a)
(b)
(c)
(d)
(e)
(f)
The financial statements of the Holding 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.
Profits or losses resulting from intra-group transactions that are recognised in assets, such as Inventory and
Property, Plant and Equipment, are eliminated in full.
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 (FCTR).
Goodwill represents the difference between the Company’s share in the net worth of subsidiaries and the cost of
acquisition at each point of time of making the investment in the subsidiaries.
The audited / unaudited financial statements of foreign subsidiaries / joint ventures / associates have been prepared
in accordance with the Generally Accepted Accounting Principle of its Country of Incorporation or Ind AS.
The differences in accounting policies of the Holding Company and its subsidiaries / associates are not material and
there are no material transactions from 1st January, 2018 to 31st March, 2018 in respect of subsidiaries / associates
having financial year ended 31st December, 2017.
(g)
The Consolidated Financial Statements have been prepared using uniform accounting policies for like transactions
and other events in similar circumstances.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
357
(h)
(i)
(j)
(k)
The carrying amount of the parent’s investment in each subsidiary is offset (eliminated) against the parent’s portion
of equity in each subsidiary.
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.
Investment in Associates and Joint Ventures has been accounted under the Equity Method as per Ind AS
28 – Investments in Associates and Joint Ventures. Investments in joint operations are accounted using the
Proportionate Consolidation Method as per Ind AS 111 – Joint Arrangements.
The Group 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 Group and its associates and joint
ventures.
(l)
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.
(m)
Non-Controlling Interest’s share of net assets of consolidated subsidiaries is identified and presented in the
Consolidated Balance Sheet.
B.3 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. In case of land
the Company has availed fair value as deemed cost on the date of transition to Ind AS. 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.
Property, Plant and Equipment which are significant to the total cost of that item of Property, Plant and Equipment
and having different useful life are accounted separately.
Other Indirect 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 straight-line method except in case of certain
assets from Refining segment and Petrochemical segment which are depreciated using written down value method.
Depreciation on wireless telecommunications equipment and components is determined based on the expected
pattern of consumption of the expected future economic benefits. 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
Depreciation
Fixed Bed Catalyst (useful life: 2 years or more)
Fixed Bed Catalyst (useful life: up to 2 years)
Premium on Leasehold Land
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.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
358
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 Consolidated
Statement of Profit and Loss when the asset is derecognised.
(b)
Leases
Leases are classified as finance leases whenever the terms of the lease, transfer substantially all the risks and rewards
of ownership to the lessee. All other leases are classified as operating leases.
Leased Assets: Assets held under finance leases are initially recognised as assets of the Group 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
Consolidated 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 ranging from 18 years to 99 years. However, if there is no
reasonable certainty that the Group 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 Consolidated 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) Other Intangible Assets
Other 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 Other
Intangible Assets. In case of certain Other Intangible Assets, the Group has availed fair value as deemed cost on the
date of transition to Ind AS.
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.
Other Indirect 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 Intangible Assets under
Development.
Gains or losses arising from derecognition of an Other Intangible Asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognised in the Consolidated Statement of
Profit and Loss when the asset is derecognised.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
359
A summary of the amortisation / depletion policies applied to the Group’s Other Intangible Assets to the extent of
depreciable amount is as follows:
Particular
Depreciation
Technical Know-How
Computer Software
Development Rights
License Fee
Spectrum Fees
Others
Over the useful life of the underlying assets ranging from 5 years to 35 years.
Over a period of 5 to 10 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.
Amortised over the remainder of the License period from the date of commencement of
the commercial operation.
Amortised from the date of commencement of commercial operation over the balance
validity period, based on the expected pattern of consumption of the expected future
economic benefits, in accordance with the applicable Accounting Standards.
In case of Jetty, the aggregate amount amortised to date is not less than the aggregate
rebate availed by the Group.
The amortisation period and the amortisation method for Other Intangible Assets with a finite useful life are
reviewed at each reporting date.
(d) Research and Development Expenditure
Revenue expenditure pertaining to research is charged to the Consolidated Statement of Profit and Loss.
Development costs of products are charged to the Consolidated 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 Consolidated Statement of Profit and Loss for the period for which they
are incurred.
(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 Other Intangible Assets
The Group assesses at each reporting date as to whether there is any indication that any Property, Plant and
Equipment and Other 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 Group
estimates the recoverable amount of the CGU to which the asset belongs.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
360
An impairment loss is recognised in the Consolidated 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 Group 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.
Provision for Decommissioning Liability
The Group 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 fulfil
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 Consolidated 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
The Group recognizes contribution payable to the provident fund scheme as an expense, when an employee renders
the related service. If the contribution payable to the scheme for service received before the balance sheet date
exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting
the contribution already paid. If the contribution already paid exceeds the contribution due for services received
before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to,
for example, a reduction in future payment or refund.
Defined Benefit Plans
The Group pays gratuity to the employees who have completed five years of service 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.
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 Income Tax 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.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
361
Employee Separation Costs
Compensation to employees who have opted for retirement under the voluntary retirement scheme is payable in the
year of exercise of option by the employee. The Group recognises the employee separation cost when the scheme is
announced and the Group is demonstrably committed to it.
(j)
Tax Expenses
The tax expense for the period comprises of current tax and deferred income tax. Tax is recognised in Consolidated
Statement of Profit and Loss, except to the extent that it relates to items recognised in the Other Comprehensive
Income or in Equity. In which case, the tax is also recognised in Other Comprehensive Income or Equity.
i.
ii.
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 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 24.3.
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 Group`s estimate of equity instruments that will eventually vest, with a
corresponding increase in equity. At the end of each reporting period, the Group 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
Consolidated 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’s closing rates of
exchange at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognised in Consolidated
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.
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
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
362
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
Other Comprehensive Income or Statement of Profit and Loss are also recognised in Other Comprehensive Income
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 Operations 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 rendering of services is recognised when the performance of agreed contractual task has been
completed.
Revenue also includes revenue towards sharing infrastructure for usage of network by other operators. Revenue
from membership fees are recognised ratably over the membership period. Revenue from other services including
advertisement is recognized on rendering services.
In case of revenue from multiple deliverables, the consideration received from customers is allocated to each
separate unit of identifiable deliverable based on its relative fair value. In case the relative fair value of different
components cannot be determined on a reasonable basis, the total consideration is allocated on a residual value
method.
Interest Income
Interest Income from a financial asset is recognised using Effective Interest Rate Method.
Dividend Income
Dividend Income is recognised when the Group’s right to receive the amount has been established.
(n)
Financial Instruments
Financial Assets
i.
A.
Initial Recognition and Measurement
All financial assets are initially recognized at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets, 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.
Subsequent Measurement
a)
Financial assets measured 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 measured 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.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
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c)
Financial Assets measured 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.
C. Other Equity Investments
All other equity investments are measured at fair value, with value changes recognised in Consolidated
Statement of Profit and Loss, except for those equity investments for which the Group has elected to
present the value changes in ‘Other Comprehensive Income’.
D.
Impairment of Financial Assets
In accordance with Ind AS 109, the Group 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, the Group applies ‘simplified approach’ which requires expected lifetime losses
to be recognised from initial recognition of the receivables. The Group 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 Group uses 12 month Expected Credit Loss to provide for impairment loss where
there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime
Expected Credit Loss is used.
ii.
Financial Liabilities
A.
Initial Recognition and Measurement
All financial liabilities are recognized at fair value and in case of borrowings, net of directly attributable
cost. Fees of recurring nature are directly recognised in the Consolidated 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 Group uses various derivative financial instruments such as interest rate swaps, currency swaps, forwards
and 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 Consolidated
Statement of Profit and Loss, except for the effective portion of cash flow hedge which is recognised in Other
Comprehensive Income and later to Consolidated Statement of Profit and Loss, when the hedged item affects
profit or loss or is treated as basis adjustment if a hedged forecast transaction subsequently results in the
recognition of a non-financial assets or non-financial liability.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
364
Hedges that meet the criteria for hedge accounting are accounted for as follows:
A.
Cash Flow Hedge
The Group 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 Consolidated 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 Consolidated 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 Consolidated Statement of Profit and Loss.
B.
Fair Value Hedge
The Group 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 Consolidated 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 Consolidated Statement of Profit
and Loss over the period of maturity.
iv. Derecognition of Financial Instruments
The Group 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 - Financial
Instruments. A financial liability (or a part of a financial liability) is derecognized from the Group’s Balance Sheet
when the obligation specified in the contract is discharged or cancelled or expires.
v.
Offsetting
Financial assets and financial liabilities are offset and the net amount is presented in the Balance Sheet when,
and only when, the Group has a legally enforceable right to set off the amount and it intends, either to settle
them on a net basis or to realise the asset and settle the liability simultaneously.
(o) Accounting For Oil and Gas Activity
The Group 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. Once a well is ready to commence commercial
production, the costs accumulated in Intangible Assets under Development are classified as Other 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
Consolidated Statement of Profit and Loss.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
365
The Group 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
financial statements, according to the participating interest of the Group.
C. Critical Accounting Judgments and Key Sources of Estimation Uncertainty
The preparation of the Group’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 Group’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 Group’s estimates of its oil and natural gas reserves. The
Group bases it’s 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 Group’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 29.2.
(b) Decommissioning Liabilities
The liability for decommissioning costs are recognized when the Group has an 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.
(c) Depreciation / Amortisation and useful lives of Property Plant and Equipment / Other Intangible Assets
Property, Plant and Equipment / Other 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 Group’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.
(d) Recoverability of Trade Receivables
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.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
366
(e)
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.
(f )
Impairment of Non-Financial Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
indication exists, the Group 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 Group uses judgement in making these assumptions and selecting the inputs to the impairment
calculation, based on it’s past history, existing market conditions as well as forward looking estimates at the end of
each reporting period.
D.
Standards Issued but not Effective
On March 28, 2018, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contract with
Customers and certain amendment to existing Ind AS. These amendments shall be applicable to the Group from
April 01, 2018.
(a)
Issue of Ind AS 115 - Revenue from Contracts with Customers
Ind AS 115 will supersede the current revenue recognition guidance including Ind AS 18 - Revenue, Ind AS 11
Construction Contracts and the related interpretations. Ind AS 115 provides a single model of accounting for revenue
arising from contracts with customers based on the identification and satisfaction of performance obligations.
(b) Amendment to existing issued Ind AS
The MCA has also carried out amendments of the following accounting standards:
i.
ii.
Ind AS 21 - The Effects of Changes in Foreign Exchange Rates
Ind AS 40 - Investment Property
iii.
Ind AS 12 - Income Taxes
iv.
Ind AS 28 - Investments in Associates and Joint Ventures and
v.
Ind AS 112 - Disclosure of Interests in Other Entities
Application of above standards are not expected to have any significant impact on the Group’s financial statements.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
367
1. PROPERTY, PLANT AND EQUIPMENT, OTHER INTANGIBLE ASSETS, CAPITAL WORK-IN-PROGRESS AND
INTANGIBLE ASSETS UNDER DEVELOPMENT
Gross Block
As at
01-04-2017
Additions /
Adjustments
Deductions/
Adjustments
As at
31-03-2018
Depreciation / Amortisation and Depletion
As at
01-04-2017
Deductions/
Adjustments
For the
Year #
As at
31-03-2018
(` in crore)
Net Block
As at
31-03-2018
As at
31-03-2017
21,020
44,953
18,813
273
682
3,730
1,79,054 1,46,987
2,134
2,993
338
50
1,554
132
2,82,545 1,58,873
6,363
6,218
1,485
791
3,484
364
156
7
349
21,137
1,642
45,628
-
22,194
5,628
1,126 3,24,915
95,821
8,340
3,568
9,128
3,552
1,806
835
715
519
5,038
333
186
484
2,033 4,39,385 1,12,084
157
83
17
126
-
12
272
10
282
2,82,827
-
-
-
1,58,873
4
-
4
2,037
268
10
278
4,39,663
250
10
260
1,12,344
3,684
-
2,043
66,775
1,072
73,574
819
57,732
2,952
2,719
1,295
65,517
3,56,401 2,24,390
27,342
3,31,245
83
-
36
3,128
36
2,561
4,420
-
57,732
1,503
4,959
45,487
66,366
872
2,331
50,423
3,283 1,35,808
5,320 5,75,471 1,62,767
1,50,589
2,186
3,56,401
424
-
674
9,340
554
649
130
90
217
82
12,160
1
-
1
12,161
188
1,131
434
3,180
122
5,055
17,216
14,033
19,104
2,033
33
45,628
-
-
55
15,947
6,247
462 1,04,699 2,20,216
4,364
3,976
146
4,981
4,147
54
853
953
12
212
503
106
550
-
4,488
217
267
1
869 1,23,375 3,16,010
4
-
4
873
247
10
257
1,23,632
21
-
21
3,16,031
1,671
2,749
-
56,601
1,131
-
3,055
1,904
33
19,357
47,009
1,658
1,357
974
20
82,041
53,767
1,711
2,584 1,77,399 3,98,072
1,93,634
1,855
1,66,220
20,802
1,62,767
19,378
44,953
13,185
83,233
2,795
2,666
650
272
3,151
178
1,70,461
22
-
22
1,70,483
1,123
-
540
21,288
200
23,151
1,93,634
2,50,377
74,460
Description
Property, Plant and
Equipment
Own Assets :
Leasehold Land
Freehold Land
Buildings
Plant and Machinery
Electrical Installations
Equipments $
Furniture and Fixtures
Vehicles
Ships
Aircrafts and Helicopters
Sub-Total
Leased Assets :
Plant and Machinery
Ships
Sub-Total
Total (A)
Other Intangible Assets*
Technical Knowhow Fees
Spectrum Cost
Software
Development Rights
Others
Total (B)
Total (A+B)
Previous Year
Capital Work-in-Progress
Intangible Assets under
Development
$
Include Office Equipments
* Other than internally generated
#
Depreciation / Amortisation and Depletion for the year include depreciation of ` 289 crore capitalised during the year and also include ` 212 crore and ` 9 crore
on account of consolidation of Viacom18 Media Private Limited and IndiaCast Media Distribution Private Limited respectively which became subsidiaries from 1st
March, 2018. Thus, net amount of `16,706 crore has been considered in Statement of Profit and Loss.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements 368
1.1
Leasehold Land includes ` 778 crore (Previous Year ` 778 crore) in respect of which the letters of allotment are received and
supplementary agreements entered, however, lease deeds are pending execution.
1.2 Buildings includes :
i)
ii)
Cost of shares in Co-operative Societies ` 2,02,700 (Previous Year ` 2,00,200).
` 135 crore (Previous Year ` 135 crore) in shares of Companies / Societies with right to hold and use certain area of
Buildings.
1.3 Other 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 crore (Previous Year ` 7 crore) in shares of companies with right to hold and use Land and Buildings.
1.4 Capital Work-in-Progress and Intangible Assets under Development includes :
i)
ii)
` 38,392 crore (Previous Year ` 59,095 crore) on account of Project Development Expenditure.
` 23,471 crore (Previous Year ` 28,667 crore) on account of cost of construction materials at site.
1.5
Additions in Property, Plant and Equipment, Capital Work-in-Progress, Other Intangible Assets and Intangible Assets under
Development includes ` 1,244 crore (net loss) [Previous Year ` 4,643 crore (net loss)] on account of exchange difference
during the year.
1.6
For Assets pledged as security - Refer Note 15.1 and 15.2.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
369
As at
31st March, 2018
As at
31st March, 2017
Units
Amount
Units
Amount
(` in crore)
Particulars
2.
A.
INVESTMENTS - NON-CURRENT
Investment in Associates
Investments measured at Cost (accounted using
Equity Method)
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)]
Algenol LLC
Big Tree Entertainment Private Limited of ` 10 each
Clayfin Technologies Private Limited of ` 10 each
Eenadu Television Private Limited of ` 10 each
Gaurav Overseas Private Limited of ` 10 each [ ` 28,87,249;
(Previous Year ` 19,21,993)]
Genesis Luxury Fashion Private Limited of ` 319.60 each
Gujarat Chemical Port Terminal Company Limited of ` 1 each
Indian Vaccines Corporation Limited of ` 10 each
Matrix Genetics LLC
Reliance Europe Limited of Sterling Pound 1 each
Reliance Bally India Private Limited of ` 10 each
[Previous Year ` 50,000]
Reliance Utilities and Power Private Limited Class A
shares of ` 1 each [ ` 40,40,000; (Previous Year ` 40,40,000)]
68,60,064
1,00,000
-
17,04,279
35,93,552
60,94,190
3,23,000
82,22,360
64,29,20,000
62,63,125
-
11,08,500
-
175
175
-
-
-
21
301
-
269
250
1
-
35
-
68,60,064
1,00,000
2,87,56,718
17,04,279
35,93,552
60,94,190
2,10,000
-
64,29,20,000
62,63,125
52,49,344
11,08,500
5,000
52,00,000
-
52,00,000
The Indian Film Combine Private Limited of ` 100 each
TV18 Home Shopping Network Limited of ` 10 each
Vay Network Services Private Limited of ` 2 each [ ` 39,14,826]
24x7 Learning Private Limited of ` 10 each
66,360
7,67,196
19,57,413
6,45,558
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
2
2,32,356
3,63,207
In Limited Liability Partnership
GenNext Ventures Investment Advisers LLP [ ` 26,67,227;
(Previous Year ` 25,28,335)]
Investment measured at Amortised Cost
In Preference Shares - Unquoted, Fully paid up
East West Pipeline Limited - 9% Non-Cumulative
Redeemable Preference Shares of ` 10 each
A.
Total Investments in Associates
-
-
-
6,45,558
2
2,32,356
3,63,207
340
23
-
-
1,240
-
-
141
141
-
-
50,00,00,000
3,542
50,00,00,000
3,542
5,098
171
171
-
1
-
23
274
-
-
198
1
-
33
-
-
-
-
-
-
530
-
14
191
205
-
-
3,324
3,324
4,230
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements 370
Particulars
B.
Investment in Joint Ventures
As at
31st March, 2018
As at
31st March, 2017
Units
Amount
Units
Amount
(` in crore)
Investment measured at Cost (accounted using
Equity method)
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 [Previous
Year ` 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 Solution 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)
Reliance Bally India Private Limited of ` 10 each
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 of ` 10 each
Viacom18 Media Private Limited of ` 10 each
Zegna South Asia Private Limited of ` 10 each
In Preference Shares - Unquoted, Fully paid up
IBN Lokmat News Private Limited - 0.10% Non Cumulative
Redeemable Preference Shares of ` 100 each
Viacom18 Media Private Limited - 0.001% Optionally
Convertible Non-Cumulative Redeemable Preference
Shares of ` 10 each [Previous Year ` 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 Investments in Joint Ventures
2,45,00,000
1,07,00,000
4,55,70,000
9,12,531
86,25,000
25,05,000
5,33,60,074
45,05,000
-
9,24,00,000
81,42,722
12
2
11
7
-
42
140
5
-
83
36
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
9,51,16,546
144
9,51,16,546
36,00,000
1,03,50,000
1,35,00,000
8,95,00,000
1,32,30,000
10,63,545
10,821
-
2,71,49,272
25,05,250
-
-
-
87,00,000
1,35,00,000
8,70,00,000
73,50,000
10,63,545
10,821
5,68,65,124
2,71,49,272
25,05,250
4,078
3
5
6
13
10
3
7
-
1
530
13
-
13
-
1,00,00,000
-
543
12
-
10
-
-
39
123
5
14
84
29
116
-
4
7
17
6
3
6
1,505
1
1,981
13
-
13
10
10
2,004
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice 371
Particulars
C. Other Investments
As at
31st March, 2018
As at
31st March, 2017
Units
Amount
Units
Amount
(` in crore)
Investment measured at Amortised Cost
In Government Securities - Unquoted
6 Years National Savings Certificate (Deposited with Sales
Tax Department and Other Government Authorities)
[ ` 29,33,077; (Previous Year ` 20,33,077)]
In Preference Shares - Unquoted, Fully paid up
Den Entertainment Network Private Limited of ` 10 each
In Debentures or Bonds - Unquoted, Fully paid up
Yes Bank Limited - Unsecured Redeemable
Non-Convertible, Upper Tier II Bonds of ` 10,00,000 each
25,00,000
30
Investment measured at Fair Value Through Other
Comprehensive Income (FVTOCI)
In Membership Interest of LLP - Unquoted
Labs 02 Limited Partnership
In Membership Interest of LLC - Unquoted
BreakThrough Energy Ventures LLC
In Equity Shares - Quoted, Fully paid up
Algae. Tech Limited of AU$ 0.1636 each
Balaji Telefilms Limited of ` 2 each
EIH Limited of ` 2 each
Himachal Futuristic Communications Limited of ` 1 each
Infibeam Incorporation Limited - Convertible warrant of
` 186.48 on which ` 46.62 paid per warrant
KSL and Industries Limited of ` 4 each [ ` 34,29,000]
Refex Refrigerants Limited of ` 10 each [ ` 41,53,000]
SMC Global Securities Limited of ` 10 each
Yatra Online Inc. of $ 0.0001 each
In Equity Shares - Unquoted, Fully Paid Up
Ahmedabad Mega Clean Association of ` 10 each
[ ` 1,00,000; (Previous Year ` 1,00,000)]
Eshwar Land Private Limited of ` 10 each
KaiOS Technologies Inc (KTI) of USD 3.675 each
MobileNXT Teleservices Private Limited of ` 10 each
Petronet India Limited of ` 10 each
Petronet India Limited of ` 0.10 each [ ` 10,00,000]
4,52,88,158
2,52,00,000
10,59,07,273
4,85,32,764
21,45,002
4,74,308
2,75,000
1,09,994
19,26,397
10,000
400
19,04,781
3,01,876
-
1,00,00,000
-
-
2
2
3
3
2
2
11
11
6
328
1,685
125
10
-
-
3
62
2,219
-
80
46
-
-
-
25,00,000
30
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
-
-
-
2
2
3
3
-
-
-
-
12
-
1,276
-
-
1
1
-
59
1,349
-
-
-
-
10
-
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
372
Particulars
As at
31st March, 2018
As at
31st March, 2017
Units
Amount
Units
Amount
(` in crore)
Petronet VK Limited of ` 10 each [ ` 20,000; (Previous Year
` 20,000)]
Sonali Land Private Limited of ` 10 each [ ` 4,000]
Ushodaya Enterprises Private Limited of ` 100 each
[ ` 27,50,000; (Previous Year ` 27,50,000)]
Yatra Online Private Limited of ` 10 each
In Preferred Shares - Unquoted, Fully paid up
EdCast Inc. - Series B
Netradyne Inc. - Series A
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, Fully paid up
VT Media Private Limited - Unsecured Zero Coupon
Optionally Redeemable/Convertible Debentures of
` 1,000 each
19,99,990
400
27,500
1,09,348
2,34,302
1,50,75,708
2,025
2,50,000
In Debentures or Bonds - Quoted, Fully paid up
In Others
MPM Bioventure IV-QP, LP, USA
Investments measured at Fair Value Through Profit
and Loss (FVTPL)
In Equity Shares - Quoted, Fully paid up
In Equity Shares - Unquoted, Fully paid up
In Preferred Shares - Unquoted, Fully paid up
In Preference Shares - Unquoted, Fully paid up
In Debentures or Bonds - Quoted, Fully paid up
In Fixed Maturity Plan - Quoted, Fully Paid Up
19,99,990
-
27,500
1,09,348
-
-
-
2,50,000
-
-
-
18
144
5
111
116
466
466
25
25
2,698
66
66
2,217
248
-
-
1,827
8,859
-
-
-
18
28
-
-
-
-
-
25
25
7,755
89
89
274
294
58
466
297
7,922
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice 373
Particulars
As at
31st March, 2018
As at
31st March, 2017
Units
Amount
Units
Amount
(` in crore)
In Others
Avendus Absolute Return Fund - Class AB of ` 1,000 each
DSP Blackrock India Enhanced Equity Fund - Class B of
` 100 each
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 each
IIFL Special Opportunities Fund Class A 5.1 of ` 10 each
JM Financial Property Fund - I of ` 3,876 each (Previous Year
` 4,791 each)
KKR India Debt Fund I of ` 1,000 each
LICHFL Urban Development Fund of ` 10,000 each, ` 7,172
paid up (Previous Year ` 7,287 paid up)
Multiples Private Equity Fund - Scheme 1 of ` 1,00,000 each,
` 48,531 paid up (Previous Year ` 62,084 paid up)
Multiples Private Equity Fund II LLP of ` 1,000 each
Paragon Partners Growth Fund - I of ` 100 each
Peninsula Realty Fund of ` 1,00,000 each
Urban Infrastructure Opportunities Fund of ` 49,430 each
(Previous Year ` 60,430 each)
3one4 Capital Fund Scheme II of ` 1,00,000 each, ` 25,000
paid up (Previous Year ` 10,000 paid up)
5,00,000
-
19,11,868
5,97,16,771
88,880
2,49,09,288
50,000
4,81,250
25,000
5,000
7,51,956
15,69,603
-
21,600
2,000
C.
Total Other Investments
Total Investments - Non-Current (A+B+C)
2.1 Category-wise Investments - Non-Current
Financial Assets measured at Cost (accounted using Equity Method)
Financial Assets measured at Amortised Cost
Financial Assets measured at Fair Value Through Other Comprehensive
Income
Financial Assets measured at Fair Value Through Profit and Loss
Total Investments - Non-Current
3.
LOANS - NON-CURRENT (Unsecured and Considered Good)
Deposits with Related Parties (Refer Note 28(iv))
Loans and Advances to Related Parties (Refer Note 28(iv))
Other Loans and Advances*
Total
*
Include primarily fair value of interest free deposits.
-
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
52
-
205
77
1
25
9
113
19
48
82
25
-
54
5
715
19,618
25,259
-
37
248
56
8
-
24
267
16
39
52
-
11
83
2
843
19,405
25,639
As at
31st March, 2018
2,099
3,547
5,747
13,866
25,259
(` in crore)
As at
31st March, 2017
2,910
3,329
9,246
10,154
25,639
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
608
42
2,018
2,668
618
1
2,089
2,708
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
374
4. DEFERRED TAX
Component of Deferred Tax Assets / (Liabilities):
Deferred Tax Assets (Net)
Deferred Tax Liabilities (Net)
Net Deferred Tax Assets / (Liabilities)
Deferred Tax Assets (Net) in relation to:
Property, Plant and Equipment and Other Intangible
Assets
Financial Assets
Provisions
Disallowances
Carried Forward Losses
Others
Deferred Tax Assets (Net)
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
5,075
29,618
(24,543)
Others
(Including
Exchange
Difference)
5,537
26,735
(21,198)
(` in crore)
As at
31st March,
2018
As at
31st March,
2017
(Charge)/Credit
to Statement of
Profit and Loss
3,996
(10,435)
(85)
(6,524)
-
22
332
1,128
59
5,537
As at
31st March,
2017
10
3
(196)
9,905
347
(366)
Charge/
(Credit)
to Statement of
Profit and Loss
-
10
(99)
13
65
(96)
Others
(Including
Exchange
Difference)
10
35
37
11,046
471
5,075
As at
31st March,
2018
Deferred Tax Liabilities (Net) in relation to:
Property, Plant and Equipment and Other Intangible
Assets
Financial Assets
Loan and Advances
Provisions
Disallowances
Carried Forward Losses
Others
Deferred Tax Liabilities (Net)
27,331
706
(21)
(785)
(31)
(358)
(107)
26,735
2,663
213
(6)
(30)
28
168
(154)
2,882
-
1
-
-
-
-
-
1
29,994
920
(27)
(815)
(3)
(190)
(261)
29,618
Net Deferred Tax Assets / (Liabilities)
(21,198)
(3,248)
(97)
(24,543)
5. OTHER NON-CURRENT ASSETS (Unsecured and Considered Good)
Capital Advances
Security Deposits*
Advance Income Tax (Net of Provision)
Others
Total
*
Include Deposits of ` 504 crore (Previous Year ` 507 crore) given to Related Parties. (Refer Note 28(iv)).
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
1,983
2,617
2,639
1,414
8,653
3,985
2,172
1,746
376
8,279
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
375
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
19,432
12,321
12,788
4,129
10,824
1,343
60,837
16,412
11,426
11,253
3,964
5,896
-
48,951
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
585
585
7
7
5
21,744
21,756
-
3,334
5,824
1,943
5,359
3
18,799
35,262
57,603
-
-
6
6
605
22,313
22,924
1,293
4,509
2,594
2,272
3,759
208
19,701
34,336
57,260
6.
INVENTORIES
Raw Materials (Including Material In Transit)
Work-in-Progress *
Finished Goods
Stores and Spares
Stock-in-Trade
Others
Total
*
Includes land and its development cost of ` 6,679 crore (Previous Year ` 6,532 crore)
7.
INVESTMENTS - CURRENT
Investment measured at Amortised Cost
Collateral Borrowing and Lending Obligation - Unquoted
Investment measured at Fair Value Through Other Comprehensive Income
(FVTOCI)
In Equity Shares - Quoted Fully paid up
DEN Networks Limited of ` 10 each
[Current Year Units - 6,98,288 (Previous Year Units 6,98,288)]
In Mutual Fund - Quoted
In Mutual Fund - Unquoted
Investment measured at Fair Value Through Profit and Loss (FVTPL)
In Government Securities - Quoted #
In Equity Shares - Quoted, Fully paid up
In Debentures or Bonds - Quoted, Fully Paid Up
In Treasury Bills - Quoted
In Fixed Maturity Plan - Quoted, Fully Paid Up
In Mutual Fund - Quoted
In Mutual Fund - Unquoted
Total Investments - Current
#
Include ` Nil (Previous Year ` 595 crore) given as collateral security.
7.1 Category-wise Investments - Current
Financial Assets measured at Amortised Cost
Financial Assets measured at Fair Value Through Other Comprehensive Income
Financial Assets measured at Fair Value Through Profit and Loss
Total Investments - Current
As at
31st March, 2018
585
21,756
35,262
57,603
(` in crore)
As at
31st March, 2017
-
22,924
34,336
57,260
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
376
8.
TRADE RECEIVABLES (Unsecured and Considered Good)
Trade Receivables
Total
9.
CASH AND CASH EQUIVALENTS
Cash on Hand
Balances with Banks*
Cash and Cash Equivalents as per Balance Sheet
Cash and Cash Equivalents as per Consolidated Cash Flow Statement includ-
ing Deposits#
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
17,555
17,555
8,177
8,177
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
89
4,166
4,255
4,255
113
2,910
3,023
3,023
*
Include Unclaimed Dividend of ` 259 crore (Previous Year ` 241 crore), Deposits of ` 213 crore (Previous Year ` 32 crore) with maturity of more than 12 months
and Fixed Deposits of ` 1,376 crore (Previous Year ` 1,699 crore) pledged as collateral securities.
# Deposits of ` Nil (Previous Year ` 34 crore) are given as lien against Short Term Borrowings.
9.1 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.
10. OTHER FINANCIAL ASSETS - CURRENT
Interest Accrued on Investment
Deposits
Others^
Total
^
Include fair value of derivatives.
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
158
1,884
6,406
8,448
360
2,161
6,014
8,535
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
11. OTHER CURRENT ASSETS (Unsecured and Considered Good)
Balance with Customs, Central Excise, GST and State Authorities
Others**
Total
22,802
9,959
32,761
16,802
3,069
19,871
** Include primarily Intangible Assets Under Development held for sale amounting to ` 4,353 crore, prepaid expenses and claims receivables.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice 377
(` in crore)
Year Ended
31st March, 2018
Year Ended
31st March, 2017
10,098
3,248
13,346
8,880
1,321
10,201
12. 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 Property, Plant and Equipment and
Other Intangible Assets
Incremental Deferred Tax (Asset) / 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
ADVANCE INCOME TAX (NET OF PROVISION)
At start of the year
Charge for the year
Others*
Tax paid during the year
At end of the year#
* Mainly pertain to Provision for Tax on Other Comprehensive Income
# Refer Note 5 and Note 21
Year Ended
31st March, 2018
49,426
34.608%
17,105
(` in crore)
Year Ended
31st March, 2017
40,034
34.608%
13,855
(2,630)
4,109
(7,599)
196
(1,116)
33
10,098
13,098
(9,850)
3,248
13,346
27.00%
(3,110)
3,270
(6,078)
1,176
(230)
(3)
8,880
1,281
40
1,321
10,201
25.48%
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
1,735
(10,098)
1,157
9,844
2,638
1,133
(8,880)
(601)
10,083
1,735
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
378
13. SHARE CAPITAL
Authorised Share Capital:
14,00,00,00,000 Equity Shares of ` 10 each
(5,00,00,00,000)
1,00,00,00,000 Preference Shares of ` 10 each
(1,00,00,00,000)
Issued, Subscribed and Paid up:
5,92,18,26,196 Equity Shares of ` 10 each, fully paid up
(2,95,89,24,277)
Less: Calls in Arrears - by others
[` Nil (Previous Year ` 2,303)]
Total
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
14,000
1,000
15,000
5,922
-
5,922
5,000
1,000
6,000
2,959
-
2,959
13.1
2,95,98,63,235 Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium
(-)
Reserve and Capital Redemption Reserve.
13.2
45,04,27,345 Shares allotted on conversion / surrender of Debentures and Bonds, conversion of Term Loans,
13.3
13.4
(45,04,27,345)
3,44,000
(1,72,000)
-
(4,25,82,849)
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.
Figures in brackets represent Previous Year figures.
13.5 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: Bonus Shares
Add: Shares sold by subsidiaries
Less: Bonus Shares issued against shares held by eligible entity (trust)
Equity Shares at the end of the year
As at
31st March, 2018
No. of Shares
2,95,89,24,277
30,38,684
3,08,03,34,238
-
12,04,71,003
5,92,18,26,196
As at
31st March, 2017
No. of Shares
2,94,80,21,694
1,09,01,779
-
804
-
2,95,89,24,277
13.6
During the year, the Company has not granted any options (Previous year 74,454 options) under ESOS-2006 scheme and
the said scheme has been withdrawn. The Members approved a new scheme viz. ‘Reliance Industries Limited Employees’
Stock Option Scheme 2017’ (ESOS-2017) with a limit to grant 6,33,19,568 options. This ceiling will be adjusted for any
future bonus issue of shares or stock splits or consolidation of shares and also may further be adjusted at the discretion of
the Board of Directors for any corporate action (s). The Company has not granted any options under ESOS-2017.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
379
13.7 Rights, preferences and restrictions attached to shares:
The Company has only one class of equity shares having par value of ` 10 each and the holder of the equity share is entitled
to one vote per share. The dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held.
13.8
Issued, Subscribed and Paid Up Capital excludes 29,23,53,823 (Previous Year 29,23,53,823) equity shares directly held by
subsidiaries/trust, before their becoming subsidiaries of the Company.
During the year 2017-18 as a part of bonus issue, the Company has issued 12,04,71,003 equity shares as bonus shares to the
eligible entity (trust). Accordingly the same has been eliminated as the trust is getting consolidated in the Financial Statements.
As at
31st March, 2018
As at
31st March, 2017
(` in crore)
14. OTHER EQUITY
Share Application Money Pending Allotment
As per last Balance Sheet
Add: Application Money Received / Issue of Shares
Revaluation Reserve
As per last Balance Sheet
Add: On Revaluation
Less: Divestment of Stake
Less: Transferred to Retained Earnings
Less: Transferred to Non Controlling Interest
Capital Reserve
As per last Balance Sheet
Capital Redemption Reserve
As per last Balance Sheet
Add: Transferred from Retained Earnings on redemption of
shares
Less: Issue of Bonus Shares
Less: Divestment of Stake
Debenture Redemption Reserve
As per last Balance Sheet
Add: Transferred from Retained Earnings
Share Based Payments Reserve
As per last Balance Sheet
Less: On Employee Stock Options
Share in Reserves of Associates
As per last Balance Sheet
Less: Transferred to Retained Earnings
4
11
870
-
870
543
327
-
96
2
98
48
36
1,120
4,145
16
4
10
10
15
-
291
4
870
291
8
(4)
835
46
881
-
-
11
96
-
96
-
-
14
96
1,120
-
5,265
1,120
18
2
10
-
16
10
12
-
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
380
As at
31st March, 2018
As at
31st March, 2017
(` in crore)
Statutory Reserve
As per last Balance Sheet
Add: Transferred from Retained Earnings
Securities Premium Reserve
As per last Balance Sheet
Add: Securities Premium on Redemption of Non-Cumulative
Optionally Convertible Preference Shares / Others
Add: On Employee Stock Options
Less: Issue of Bonus Shares
Less: Calls in arrears - by others [` Nil (Previous Year ` 1,03,189)]
General Reserve
As per last Balance Sheet
Add: Transferred from Retained Earnings
Add: Movement during the year
Retained Earnings
As per last Balance Sheet
Add: Profit for the year
Add: Transferred from Revaluation Reserve
Add: Transferred from Share in Reserve of Associates
Add: Transferred from Share Based Payments Reserve
Less: On account of Amalgamation / Divestment of Stake
Less: Securities Premium on Redemption of Non-Cumulative
Optionally Convertible Preference Shares
Less : Appropriations
Transferred to Statutory Reserve
Transferred to General Reserve
Transferred to Debenture Redemption Reserve
Transferred to Capital Redemption Reserve
Dividend on Equity Shares
[Dividend per Share ` 11 (Previous Year ` Nil)]
Tax on Dividend
Other Comprehensive Income (OCI) *
As per last Balance Sheet
Add: Divestment of Stake
Add: Movement during the year
Total
*
Includes net movement in Foreign Currency Translation Reserve
248
221
43,624
131
126
43,881
2,912
-
2,00,004
25,000
12
9,273
36,075
327
10
4
421
144
45,124
221
25,000
4,145
2
3,255
661
5,194
138
(1,639)
248
469
182
66
42,983
(52)
693
43,624
-
-
40,969
43,624
1,75,214
24,790
-
2,25,016
2,00,004
4,480
29,901
-
-
-
252
-
34,129
66
24,790
-
-
-
-
11,840
9,273
3,371
-
1,823
3,693
2,87,584
5,194
2,60,750
14.1
Share Application Money Pending Allotment represents application money received on account of Employees Stock Option
Scheme.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
381
As at
31st March, 2018
As at
31st March, 2017
Non-Current
Current
Non-Current
Current
(` in crore)
8,500
6,065
14,565
27,000
41,242
59,487
1,881
1,29,610
1,44,175
5,003
804
5,807
-
1,884
28,825
643
31,352
37,159
13,503
5,394
18,897
7,002
44,232
80,489
1,528
1,33,251
1,52,148
133
171
304
-
536
11,682
401
12,619
12,923
15. BORROWINGS
Secured - At Amortised Cost
Non-Convertible Debentures
Term Loans - from Banks
Unsecured - At Amortised Cost
Non-Convertible Debentures
Bonds
Term Loans - from Banks
Term Loans – from Others
Total
15.1 Secured Non-Convertible Debentures referred above to the extent of:
a)
b)
c)
d)
` 370 crore (Previous Year ` 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.
` 133 crore (Previous Year ` 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 (Previous Year ` 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 (Previous Year ` 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)
` 6,860 crore (Previous Year ` 5,559 crore) are secured by way of mortgage/ hypothecation of movable, immovable
properties and current assets.
` 9 crore (Previous Year ` 6 crore) are secured by way of hypothecation of vehicles and are repayable over a period of
two to five years.
15.3 Maturity Profile and Rate of Interest of Non-Convertible Debentures are as set out below :
a)
Secured :
Rate of Interest
6.25%
8.10%
8.25%
8.32%
8.40%
8.55%
8.75%
10.75%
Total
2025-26
-
-
1,000
-
-
-
-
-
1,000
2024-25
-
-
1,000
-
-
-
-
-
1,000
Non-Current
2021-22
-
-
-
2,000
-
-
-
-
2,000
2023-24
-
-
1,000
-
-
-
-
-
1,000
2020-21
-
-
-
-
-
-
500
-
500
2019-20
-
3,000
-
-
-
-
-
-
3,000
(` in crore)
Current
2018-19
133
-
-
-
1,000
3,500
-
370
5,003
Total
-
3,000
3,000
2,000
-
-
500
-
8,500
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
382
b)
Unsecured :
Rate of Interest
6.78%
6.80%
6.95%
7.00%
7.07%
7.17%
8.90%
8.95%
9.00%
9.25%
Total
Non-Current
2024-25 2022-23 2020-21 2019-20
-
-
-
-
-
-
5,000
-
-
-
5,000
-
1,000
-
500
-
-
-
-
-
10,000
1,500
2,500
2,500
2,500
-
2,500
-
-
2,000
-
-
12,000
-
-
-
-
-
-
-
-
1,000
2,500
3,500
15.4 Maturity Profile and Rate of Interest of Bonds are as set out below :
Unsecured :
(` in crore)
Current
Total 2018-19
-
2,500
-
2,500
-
2,500
-
5,000
-
2,500
-
5,000
-
1,000
-
2,500
-
1,000
-
2,500
-
27,000
(` in crore)
Current*
Rate of
Interest
1.87%
2.06%
2.44%
2.51%
3.67%
4.13%
4.50%
4.88%
5.00%
5.40%
6.25%
6.34%
6.61%
7.63%
8.25%
9.38%
10.25%
10.50%
Total
Non-Current*
2096-97
2046-47
2044-45
2040-41
2035-36
2027-28
2026-27
2025-26
2024-25
2023-24
2022-23
2021-22
2020-21
2019-20
Total
2018-19
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
81
-
81
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
62
62
-
-
-
-
-
-
-
4,888
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,194
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,304
-
-
-
-
-
-
-
-
-
-
-
-
-
5,214
-
-
-
-
-
-
-
-
33
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
221
144
-
-
126
124
141
147
-
-
-
-
-
-
-
-
-
-
-
-
-
-
126
124
141
147
-
6,517
-
-
-
-
-
-
-
-
-
-
-
-
126
124
141
147
126
124
141
147
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
126
124
141
147
-
-
-
-
-
9,581
-
-
-
-
-
-
-
-
126
124
141
147
-
-
6,388
-
-
-
-
-
-
-
-
-
-
-
126
124
141
147
-
-
-
-
-
-
-
-
-
-
-
-
-
-
882
868
987
1,029
5,214
6,517
6,388
4,888
1,304
9,581
3,194
-
-
33
221
144
81
62
126
124
141
147
-
-
-
-
-
-
-
248
1,108
-
-
-
-
-
4,888
3,194
1,304
5,247
365
538
7,055
538
538
10,119
6,926
538
41,393
1,894
*
Include ` 161 crore (Non-Current ` 151 crore and Current ` 10 crore) as Prepaid Finance Charges.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
15.5 Maturity Profile of Secured Term Loans are as set out below :
Term Loans- from Banks *
*
Include ` 25 crore (Non-Current ` 25 crore and Current ` Nil) as Prepaid Finance Charges.
15.6 Maturity Profile of Unsecured Term Loans are as set out below :
Term Loans- from Banks #
Term Loans- from Others
#
Include ` 628 crore (Non-Current ` 496 crore and Current ` 132 crore) as Prepaid Finance Charges.
16. OTHER FINANCIAL LIABILITIES - NON-CURRENT
Others ^
Total
383
Non-Current
Above
5 years
2,831
1-5
years
3,259
(` in crore)
Current
Total
1 year
6,090
804
Non-Current
Above
5 years
14,765
-
1-5
years
45,218
1,881
(` in crore)
Current
Total
1 year
59,983
1,881
28,957
643
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
8,542
8,542
9,025
9,025
^
Include primarily Interest Accrued but not due on Deferred Payment Liabilities and Creditors for Capital Expenditure.
17. PROVISIONS - NON-CURRENT
Provision for Annuities
Provision for Decommissioning of Assets **
Others
Total
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
18
2,886
2
2,906
14
2,337
2
2,353
** The movement in the provision is primarily towards (i) Utilisation for Tapti facilities, (ii) changes in the exchange rates and (iii) Unwinding of discount. Provision for
Decommissioning of Assets is primarily for Panna Mukta, Tapti, KGD6 and CBM Block. There exits uncertainty on 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.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
384
As at
31st March, 2018
As at
31st March, 2017
(` in crore)
18. BORROWINGS - CURRENT
Secured - At Amortised Cost
Working Capital Loans
From Banks
Foreign Currency Loans
Rupee Loans
Unsecured - At Amortised Cost
Other Loans and Advances
From Banks
Foreign Currency Loans
Rupee Loans
From Others
Commercial Paper*
294
2,410
2,937
940
Loans from Related Parties (Refer Note 28(ii))
Total
*
Maximum amount outstanding at any time during the year was ` 39,614 crore (Previous Year ` 8,474 crore).
6,176
3,657
2,704
9,833
14,411
69
14,480
7,147
68
31,528
3,877
30,784
64
37,429
18.1
a)
Working Capital Loans from Banks of ` 1,991 crore (Previous Year ` 9,473 crore) are secured by hypothecation of
present and future stock of raw materials, stock-in-process, finished goods, stores and spares (not relating to plant
and machinery), book debts, outstanding monies, receivables, claims, bills, materials in transit, etc. save and except
receivables of Oil and Gas Segment.
b)
c)
` 382 crore (Previous Year ` 20 crore) are secured by way of first charge on all the Current Assets.
` 294 crore (Previous Year ` 340 crore) line of credit are secured by guarantee given by the Holding Company.
d)
` 37 crore (Previous Year ` Nil) are secured by way of lien on Fixed Deposits.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
385
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
37,159
870
2,598
259
-
3
-
84,262
1,25,151
12,923
739
2,452
241
1
3
1
88,181
1,04,541
19. OTHER FINANCIAL LIABILITIES - CURRENT
Current maturities of Borrowings - Non-Current
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
*
These figures do not include any amounts due and outstanding, to be credited to Investor Education and Protection Fund except ` 19 crore (Previous Year ` 20
crore) which is held in abeyance due to legal cases pending.
#
Include Creditors for Capital Expenditure, Security Deposit and Financial Liability at Fair Value.
20. OTHER CURRENT LIABILITIES
Other Payables ^
Total
^
Include advances from customers and statutory dues.
21. PROVISIONS - CURRENT
Provision for Employee Benefits (Refer Note 24.1)**
Provision for Income Tax (Net of Advance Tax)
Other Provisions ^^
Total
As at
31st March, 2018
(` in crore)
As at
31st March, 2017
43,179
43,179
20,882
20,882
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
570
1
661
1,232
397
11
1,361
1,769
** Include annual leave and vested long service leave entitlement accrued and compensation claims made by employees.
^^ Include primarily Provision for Customs Duty, Excise Duty on Finished Goods and Other Duties and Taxes.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements 386
22. OTHER INCOME
Interest
Bank Deposits
Debt instruments
Other Financial Assets measured at Amortised Cost
Others
Dividend Income
Other Non Operating Income
Gain on Financial Assets
Realised Gain
Unrealised Gain
Profit on Divestment of Stake*
Total
2017-18
2016-17
(` in crore)
99
2,565
270
18
4,113
47
2,952
1,021
670
4,160
1,146
9,949
392
2,263
246
84
3,768
1,642
2,985
345
703
5,410
-
9,443
Other Income comprises of income from assets measured at Amortised Cost ` 1,050 crore (Previous Year ` 1,178 crore), income from assets measured at Fair Value
Through Profit and Loss ` 3,887 crore (Previous Year ` 4,448 crore), income from assets measured at Fair Value Through Other Comprehensive Income ` 4,342 crore
(Previous Year ` 3,114 crore) and Other Non Operating Income ` 670 crore (Previous Year ` 703 crore).
*
Includes Exceptional items of ` 1,087 crore from profit on divestment of stake in Gulf Africa Petroleum Corporation (GAPCO).
2017-18
2016-17
(` in crore)
23. 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
Less: Divestment of Stake
Add: Opening Stock of Subsidiaries acquired during the year
Total
23,612
12,321
17,149
11,426
28,575
799
453
-
17,149
11,426
35,933
28,575
15,533
9,075
24,608
1,273
-
22
27,323
(8,610)
23,357
(5,218)
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
24. EMPLOYEE BENEFITS EXPENSE
Salaries and Wages
Contribution to Provident and Other Funds
Staff Welfare Expenses
Total
2017-18
8,090
591
842
9,523
24.1 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
2017-18
284
16
163
387
(` in crore)
2016-17
7,233
506
649
8,388
(` in crore)
2016-17
265
17
137
(` in crore)
Gratuity (Funded)
Gratuity (Unfunded)
2017-18
2016-17
2017-18
2016-17
Defined Benefit Obligation at beginning of the year
Add: On Acquisition/Transfers/Others
Current Service Cost
Interest Cost
Actuarial (Gain) / Loss
Benefits Paid
Defined Benefit Obligation at end of the year
949
60
93
70
(33)
(99)
1,040
865
7
80
69
(9)
(63)
949
28
-
17
2
(7)
(3)
37
31
-
18
3
(21)
(3)
28
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/Others
Expected Return on Plan Assets
Actuarial Gain / (Loss)
Employer Contribution
Benefits Paid
Fair Value of Plan Assets at end of the year
Actual Return on Plan Assets
(` in crore)
Gratuity (Funded)
2017-18
2016-17
929
47
74
3
45
(97)
1,001
75
849
7
69
1
64
(61)
929
61
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
388
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 year recognised
in Other Comprehensive Income
V)
Investment Details:
Government of India Securities
Public Securities
State Government Securities (` 10,98,308)
Insurance Policies
Others (including Bank Balances) (` 9,93,805)
VI) Actuarial Assumptions
Mortality Table (IALM)
(` in crore)
Gratuity (Funded)
Gratuity (Unfunded)
As at 31st March
As at 31st March
2018
1,001
1,040
(39)
2017
929
949
(20)
2018
-
37
(37)
2017
-
28
(28)
Gratuity (Funded)
Gratuity (Unfunded)
2017-18
2016-17
2017-18
2016-17
(` in crore)
93
70
(64)
-
99
(36)
(10)
(46)
80
69
(66)
4
87
(14)
(3)
(17)
17
2
-
-
19
(7)
-
(7)
18
3
-
-
21
(21)
-
(21)
As at 31st March, 2018
As at 31st March, 2017
(` in crore) % Invested
(` in crore) % Invested
16
1
-
984
-
1,001
1.60
0.10
0.01
98.28
0.01
100.00
16
4
-
905
4
929
1.72
0.43
-
97.42
0.43
100.00
Gratuity (Funded)
Gratuity (Unfunded)
2017-18
2016-17
2017-18
2016-17
2006-08
2006-08
2006-08
2006-08
(Ultimate)
(Ultimate)
(Ultimate)
(Ultimate)
Discount Rate (per annum)
Expected Rate of Return on Plan Assets (per annum)
Rate of Escalation in Salary (per annum)
8%
8%
6%
8%
8%
6%
8%
-
6%
8%
-
6%
The estimates of Rate of Escalation in salary considered in actuarial valuation, take into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information is
certified by the actuary.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
389
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.
VII)
The expected contributions for Defined Benefit Plan for the next financial year will be in line with financial year 2017-18.
VIII) These plan’s typically expose the Group 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
determined by reference to market yields at the end of the reporting period on government bonds.
Interest
Risk
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.
Longevity
Risk
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.
Salary
Risk
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.
24.2
The Company had announced Voluntary Separation Scheme (VSS) for the employees of Patalganga Manufacturing Division.
A sum of ` 1 crore (Previous Year ` Nil) has been paid during the year and debited to the Statement of Profit and Loss under
the head “Employee Benefits Expense”.
24.3 Share Based Payments
a)
Scheme Details
The Company has Employee Stock Option Scheme (ESOS -2006) under which majority of the options have
been granted at the exercise price of ` 321 (face value ` 10 each) to be vested from time to time on the basis of
performance and other eligibility criteria.
Financial Year
(Year of Grant)
i)
2006-07
2008-09
2010-11
2011-12
2013-14
2014-15
Sub Total
ii)
2015-16
2016-17
Sub Total
Total
Pre Bonus
Post Bonus*
Financial Year of
Vesting
Range of Exercise
price (`) *
Range of Fair value
at Grant Date (`) *
Details of Employee Stock Options granted upto 31st March, 2015 but not vested as on 1st April, 2015
5,51,760
13,200
5,760
16,855
60,107
45,419
6,93,101
11,03,520
2015-16
26,400 2015-16 & 2016-17
2015-16
11,520
2015-16
33,710
1,20,214 2015-16 to 2018-19
90,838 2015-16 to 2019-20
13,86,202
321.00
322.30
464.50
382.50 - 486.00
430.00 - 440.00
421.60 - 480.40
154.90
156.20 - 164.90
227.20
194.20 - 241.00
140.70 - 226.50
126.90 - 236.50
14,967
74,454
89,421
7,82,522
29,934 2016-17 to 2019-20
1,48,908 2017-18 to 2020-21
1,78,842
15,65,044#
443.70
548.00
127.30 - 173.20
149.80 - 204.50
Details of Employee Stock Options granted from 1st April, 2015 to 31st March, 2018
*
#
Stock options post bonus issue, range of exercise price and range of fair value at grant date have been proportionately adjusted to give
the impact of bonus issue in the ratio of 1:1 made by the Company during FY 2017-18.
Include options exercised, expired / lapsed upto 31st March, 2018 i.e. 7,78,232. Accordingly balance of outstanding options granted as
on 31st March, 2018 is 7,86,812.
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, of the Board.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
390
b)
Compensation Expenses arising on account of the Share Based Payments
Expenses arising from equity – settled share-based payment
transactions
c)
Fair Value on the grant date
(` in crore)
Year ended
31st March, 2018
1.29
Year ended
31st March, 2017
1.00
The fair value on the grant date is determined using “Black Scholes Model”, which takes into account exercise price,
term of the option, share price at grant date and expected price volatility of the underlying shares, expected dividend
yield and risk free interest rate for the term of the option.
The model inputs for options granted during the previous year ended 31st March, 2017 included as mentioned below.
Further, no new stock options were granted during FY 2017-18;
a) Weighted average exercise price `1,096
b)
c)
d)
e)
f)
g)
Grant date: 05.10.2016 & 10.10.2016
Vesting year: 2017-18 to 2020-21
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
Balance at the beginning of the year
Bonus Issue
Granted during the year
Exercised during the year
Expired / Lapsed during the year
Balance at the end of the year
As at
31st March, 2018
Number
of share
options
5,44,682
5,44,682
-
(1,73,240)
(1,29,312)
7,86,812
Weighted
average
exercise price
379.41
379.41
-
338.37
430.31
380.08
As at
31st March, 2017
Number
of share
options
5,66,253
-
74,454
(81,815)
(14,210)
5,44,682
Weighted
average
exercise price
697.61
-
1096.00
642.03
758.55
758.82
Weighted average of remaining contractual life of the share options outstanding at the end of year is 288 days (Previous year 247 days)
25. FINANCE COSTS
Interest Expenses*
Other Borrowing Costs
Applicable loss on foreign currency transactions and translation
Total
*
Interest Expenses are net of Interest Capitalised of ` 10,035 crore (Previous Year ` 10,942 crore).
2017-18
7,246
51
755
8,052
(` in crore)
2016-17
3,157
1
691
3,849
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
391
2017-18
2016-17
(` in crore)
26. OTHER EXPENSES
Manufacturing Expenses
Stores, Chemicals and Packing Materials
Electric Power, Fuel and Water
Labour Processing, Production Royalty and Machinery Hire Charges
Repairs to Building
Repairs to Machinery
Exchange Difference (Net)
Excise Duty #
Lease Rent
Land Development and Construction Expenditure
Selling and Distribution Expenses
Warehousing and Distribution Expenses
Sales Tax / VAT
Other Selling and Distribution Expenses
Establishment Expenses
Professional Fees
Network Operating Expenses
Access Charges (Net)
Regulatory Charges
General Expenses
Programming and Telecast Related Expenses
Rent
Insurance
Rates and Taxes
Other Repairs
Travelling Expenses
Payment to Auditors
Loss on Sale /Discard of Property, Plant and Equipment and Other
Intangible Assets
Charity and Donations
Less: Transferred to Project Development Expenditure
Total
5,852
14,569
1,511
158
1,280
27
(95)
138
6,396
854
3,284
1,187
4,948
4,170
1,775
2,271
577
1,480
1,003
701
717
435
30
139
816
23,440
103
10,534
20,386
59
10,294
5,558
11,251
1,705
131
1,114
340
240
47
5,892
1,428
2,974
2,329
-
-
-
2,490
286
1,366
952
340
715
428
35
113
668
20,249
3,814
50,512
9,722
1,961
38,500
#
Excise Duty shown under Manufacturing Expenses 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 Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements 392
26.1 Corporate Social Responsibility (CSR)
(a)
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 ` 729 crore (Previous Year ` 636 crore)
(b)
Expenditure related to Corporate Social Responsibility is ` 771 crore (Previous Year ` 674 crore)
Details of Amount spent towards CSR is given below:
Particulars
Rural Transformation
Health
Education
Sports For Development
Disaster Response
Urban Renewal (` 33,94,505)
Arts, Culture and Heritage
Total
2017-18
(` in crore)
2016-17
195
148
373
50
4
-
1
771
138
267
227
27
11
3
1
674
(c)
Out of note (b) above, ` 698 crore (Previous Year ` 571 crore) is spent through Reliance Foundation, ` 38 crore
(Previous Year ` 22 crore) is spent through Reliance Foundation Youth Sports and ` 1 crore is spent through Reliance
Foundation Institution of Education and Research which are related parties.
(d)
Out of note (b) above, ` Nil (Previous Year ` 5 crore) is towards construction / acquisition of an asset that will be
owned by the Company.
27. EARNINGS PER SHARE (EPS)
Face Value per Equity Share (`)
Basic Earnings per Share (`)
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
Diluted Earnings per Share (`)
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
Diluted EPS
Reconciliation of Weighted Average number of shares outstanding
Weighted Average number of Equity Shares used as denominator for calculating
Basic EPS
Total Weighted Average Potential Equity Shares
Weighted Average number of Equity Shares used as denominator for calculating
Diluted EPS
2017-18
2016-17
10
60.94
36,075
10
50.67*
29,901
5,91,98,12,239
5,90,16,29,432
60.89
36,075
50.57*
29,901
5,92,48,68,713
5,91,28,15,585
5,91,98,12,239
5,90,16,29,432
50,56,474
1,11,86,153
5,92,48,68,713
5,91,28,15,585
*
The Company has issued and allotted 2,95,98,63,235 equity shares to the eligible holders of equity shares on the book closure date (i.e., 9th September, 2017) as
bonus equity shares by capitalizing reserves on 13th September, 2017. The Earnings Per Share figures for the year ended 31st March, 2017 have been adjusted to
give effect to the allotment of the bonus shares, as required by Ind AS-33.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
393
28. RELATED PARTIES DISCLOSURES
(i)
List of Related Parties with whom transactions have taken place and relationships:
Name of the Related Party
Relationship
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
24 X 7 Learning Private Limited
Aeon Learning Private Limited
Algenol LLC^
Ashwani Commercials Private Limited
Atri Exports Private Limited
Big Tree Entertainment DMCC^
Big Tree Entertainment Lanka 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
Clayfin Technologies Private Limited (Formerly known as Vayana Private Limited)
Creative Agrotech Private Limited
Dyulok Technologies Private Limited
East West Pipeline Limited
(Formerly known as Reliance Gas Transportation Infrastructure Limited)
Eenadu Television Private Limited
Einsten Commercials Private Limited
Fame Agro Private Limited
Fantain Sports Private Limited
Foodfesta Wellcare Private Limited
Gaurav Overseas Private Limited
Genesis La Mode Private Limited^
Genesis Luxury Fashion Private Limited^
GenNext Ventures Investment Advisers LLP
GLB Body Care Private Limited^
GLB Perfumes and Beauty Private Limited^
GLF Lifestyle Brands Private Limited^
GML India Fashion Private Limited^
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
M Entertainments Private Limited^
Marugandha Land Developers Private Limited
Matrix Genetics LLC^
N.C. Trading Company Private Limited
Netravati Commercials Private Limited
Noveltech Agro Private Limited
NW18 HSN Holdings PLC*
Parinita Commercials Private Limited
Pepino Farms Private Limited
Prakhar Commercials Private Limited
PT Big Tree Entertainment Indonesia
Rakshita Commercials Private Limited
Reliance GAS Lifestyle India Private Limited (Formerly known as Reliance Brands
Luxury Private Limited)**
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Reliance Bally India Private Limited (Formerly known as Reliance Luxury Fashion
Private Limited)#
Reliance Utilities and Power Private Limited
52
Rocky Farms Private Limited
53
54
Shop CJ Network Private Limited
^ The companies were related parties for part of the year.
* The company ceased to be a subsidiary and became an associate from 15.02.2018.
** The company was an associate upto 28.08.2017 and became a subsidiary from 29.08.2017.
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
50
51
# The company was an associate upto 28.09.2017 and thereafter became a joint venture from 29.09.2017.
Associates
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
394
Sr.
No.
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
96
Name of the Related Party
Relationship
Shree Salasar Bricks Private Limited
Sikka Ports and Terminals Limited (Formerly known as Reliance Ports and
Terminals Limited)
SpaceBound Web Labs Private Limited
The Indian Film Combine Private Limited^
Townscript USA, Inc.^
TV18 Home Shopping Network Limited*
Vay Network Services Private Limited
Vishnumaya Commercials Private Limited
Brooks Brothers India Private Limited
D. E. Shaw India Securities Private Limited
Diesel Fashion India Reliance Private Limited
Football Sports Development Limited
IBN Lokmat News Private Limited
Iconix Lifestyle India Private Limited
IMG Reliance Limited
IndiaCast Media Distribution Private Limited^^
IndiaCast UK Limited^^
IndiaCast US Limited^^
India Gas Solutions Private Limited
Jio Payments Bank Limited
Marks and Spencer Reliance India Private Limited
Reliance Bally India Private Limited (Formerly known as 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
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
97
98
99
100 Jamnaben Hirachand Ambani Foundation
101 Reliance Foundation
102 Reliance Foundation Institution of Education and Research^
103 Reliance Foundations Youth Sports
104 IPCL Employees Gratuity Fund - Baulpur Unit
105 IPCL Employees Provident Fund Trust
106 Reliance Employees Provident Fund Bombay
107 Reliance Industries Limited Employees Gratuity Fund
108 Reliance Industries Limited Staff Superannuation Scheme
109 Reliance Industries Limited Vadodara Units Employees Superannuation Fund
110 Reliance Jio Infocomm Limited Employees Gratuity Fund
111 RIL Vadodara Unit Employees Gratuity Fund
^ The companies were related parties for part of the year.
* The company ceased to be a subsidiary and became an associate from 15.02.2018.
^^ Accounted as joint venture till 28.02.2018. Consolidated as subsidiary with effect from 01.03.2018.
# The company was an associate upto 28.09.2017 and thereafter became a joint venture from 29.09.2017.
Associates
Joint Ventures
Key Managerial Personnel
(KMP)
Relative of Key Managerial
Personnel (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, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
(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 Property, Plant and Equipment and
Other 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, 2018
1
Investments
2
3
4
5
6
7
8
Trade Receivables*
Loans and Advances
Deposits
Unsecured Loans
Trade and Other Payables*
Financial Guarantees
Performance Guarantees
Note: Figures in italic represent Previous Year’s amounts
*
Include reimbursements
156
247
709
420
1
125
27
8
319
406
251
231
724
733
4,656
2,484
849
637
-
-
-
-
2,587
2,620
13
15
66
61
46
233
-
-
2
1
5,641
6,234
139
201
42
1
1,112
1,125
64
68
681
841
1,522
1,532
-
1
395
Others
(` in crore)
Total
-
-
-
-
-
-
-
-
5
1
-
-
-
-
-
-
-
-
446
361
-
-
-
-
-
-
-
-
-
-
745
618
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
156
247
709
420
1
125
27
8
324
407
251
231
724
733
4,656
2,484
849
637
446
361
97
85
2,587
2,620
13
15
66
61
46
233
745
618
2
1
5,641
6,234
139
201
42
1
1,112
1,125
64
68
681
841
1,522
1,532
-
1
Key
Managerial
Personnel/
Relative
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
97
85
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
396
(iii) Disclosure in respect of Major Related Party Transactions during the year :
Relationship
2017-18
(` in crore)
2016-17
Particulars
Purchase of Property, Plant and Equipment and
Other Intangible Assets
East West Pipeline Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Utilities and Power Private Limited
Reliance Industrial Infrastructure Limited
Sikka Ports and Terminals Limited
Purchase / Subscription of Investments
Algenol LLC
Big Tree Entertainment Private Limited
Gaurav Overseas Private Limited
[ ` 11,00,000 (Previous Year ` Nil)]
Genesis Luxury Fashion Private Limited
The Indian Film Combine Private Limited
TV18 Home Shopping Network Limited
Vay Network Services Private Limited
[` 39,14,826 (Previous Year ` Nil)]
Brooks Brothers India Private Limited
Diesel Fashion India Reliance Private Limited
Football Sports Development Limited
IMG Reliance Limited
Jio Payments Bank Limited
Reliance Bally India Private Limited
Reliance Paul & Shark Fashions Private Limited
Reliance-Vision Express Private Limited
Ryohin-Keikaku Reliance India Private Limited
Zegna South Asia Private Limited
Associate
Associate
Associate
Associate
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
Joint Venture
Sales/ Transfer/ Redemption of Investments
Algenol LLC
Extramarks Education Private Limited
Associate
Associate
Net Loans and Advances, Deposits Given/(Returned)
Chander Commercials Private Limited
Einsten Commericals Private Limited
Gujarat Chemical Port Terminal Company Limited
Kanishka Commercials Private Limited
Reliance Europe Limited
Vishnumaya Commercials Private Limited
Football Sports Development Limited
Reliance Bally India Private Limited
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Revenue from Operations
Big Tree Entertainment Private Limited
East West Pipeline Limited
Eenadu Television Private Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Commercial Dealers Limited*
Reliance Industrial Infrastructure Limited
Reliance Utilities and Power Private Limited
Sikka Ports and Terminals Limited
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
* The company was an associate upto 09.01.2017 and thereafter became a subsidiary from 10.01.2017.
5
8
116
5
22
-
-
-
269
340
28
-
1
5
42
9
-
4
2
3
6
-
1
-
-
(6)
(10)
3
-
(2)
42
-
-
37
1
2
-
2
200
3
8
4
192
2
41
73
191
-
-
-
-
-
2
1
42
7
92
-
-
3
7
2
-
125
1
-
9
-
(3)
-
-
1
1
32
-
1
9
3
286
15
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
397
(` in crore)
2016-17
2
6
-
1
2
-
2
4
6
-
1
-
1
3
2
28
1
1
204
6
17
-
3
1
-
90
13
4
623
-
1
2
2017-18
3
6
4
1
3
3
2
5
6
1
1
1
1
2
3
30
2
5
218
10
15
2
3
1
2
109
21
1
589
1
1
2
Relationship
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
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
Joint Venture
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Associate
4,656
2,484
Particulars
Brooks Brothers India 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
Jio Payments Bank Limited
Marks and Spencer Reliance India Private Limited
Reliance Bally 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
East West Pipeline Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Reliance Utilities and Power Private Limited
Sikka Ports and Terminals Limited
Football Sports Development Limited
Purchases/ Material Consumed
Gujarat Chemical Port Terminal Company Limited
Reliance Industrial Infrastructure Limited
Reliance Utilities and Power Private Limited
Sikka Ports and Terminals Limited
Brooks Brothers India Private Limited
Diesel Fashion India Reliance Private Limited
Marks and Spencer Reliance India Private Limited
Electric Power, Fuel and Water
Reliance Utilities and Power Private Limited
Hire Charges
East West Pipeline Limited
Gujarat Chemical Port Terminal Company Limited
Reliance Industrial Infrastructure Limited
Sikka Ports and Terminals Limited
Associate
Associate
Associate
Associate
Employee Benefits Expense
Others*
I P C L Employees Provident Fund Trust
Others*
Reliance Employees Provident Fund Bombay
Reliance Industries Limited Employees Gratuity Fund
Others*
Reliance Industries Limited Staff Superannuation Scheme Others*
Others*
Reliance Industries Limited Vadodara Unit Employees
Superannuation Fund
Reliance Jio Infocomm Limited Employees Gratuity Fund Others*
* Also include Employee Contribution
475
-
40
334
110
287
16
11
2
20
203
2
45
387
103
222
-
10
2
24
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
Relationship
2017-18
(` in crore)
2016-17
398
Particulars
Payment To Key Managerial Personnel/ Relative
Shri Mukesh D. Ambani
Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri P.M.S. Prasad
Shri P.K.Kapil
Shri Alok Agarwal
Shri Srikanth Venkatachari
Shri K. Sethuraman
Smt Nita M. Ambani
Sales and Distribution Expenses
Gujarat Chemical Port Terminal Company Limited
Sikka Ports and Terminals Limited
IMG Reliance Limited
Rent
Ashwani Commerical Private Limited
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^
Sikka Ports and Terminals Limited
IBN Lokmat News Private Limited
IndiaCast Media Distribution Private Limited
Viacom18 Media Private Limited
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
Relative of KMP
Associate
Associate
Joint Venture
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Donations
Hirachand Govardhandas Ambani Public Charitable Trust Others
Others
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Others
Reliance Foundation Institution of Education and Research Others
Others
Reliance Foundation Youth Sports
Finance Costs
Reliance Europe Limited
Associate
^ The company was an associate upto 09.01.2017 and thereafter became a subsidiary from 10.01.2017.
15
20
20
9
3
12
13
3
2
86
2,499
2
2
11
1
-
39
26
-
-
2
6
-
12
1
25
-
2
6
698
1
38
2
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
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
399
As at
31st March, 2018
(` in crore)
As at
31st March, 2017
42
-
66
19
77
10
35
15
36
3
17
137
50
4
27
5
6
3
6
1
48
6
118
29
33
353
8
-
1
65
19
77
10
34
15
43
3
17
147
50
4
23
5
6
3
6
1
48
6
118
29
33
353
10
(iv) Balances as at 31st March, 2018
Particulars
Loans and Advances
Football Sports Development Limited
Reliance Bally India Private Limited
Relationship
Joint Venture
Joint Venture
Deposits
Ashwani Commericals Private Limited
Atri Exports Private Limited
Carin Commercials Private Limited
Centura Agro Private Limited
Chander Commercials Private Limited
Creative Agrotech Private Limited
Einsten Commercials Private Limited
Fame Agro Private Limited
Gaurav Overseas Private Limited
Gujarat Chemical Port Terminal Company Limited
Honeywell Properties Private Limited
Jaipur Enclave Private Limited
Kaniska Commercials Private Limited
Marugandha Land Developers Private Limited
Netravati Commercials Private Limited
Noveltech Agro Private Limited
Parinita Commercials Private Limited
Pepino Farms Private Limited
Prakhar Commercials Private Limited
Rakshita Commercials Private Limited
Reliance Utilities and Power Private Limited
Rocky Farms Private Limited
Shree Salasar Bricks Private Limited
Sikka Ports and Terminals 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
1,522
1,532
28.1 Compensation of Key Managerial Personnel
The remuneration of director and other member of Key Managerial 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
2017-18
91
2
-
2
-
95
(` in crore)
2016-17
82
2
-
-
-
84
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
400
29.1 Disclosure of the Company’s Interest in Oil and Gas Joint Arrangements (Joint Operations):
Sr.
No.
1
2
3
4
5
6
7
8
Name of the Fields in the
Joint Arrangement (Joint
Operations)
Panna Mukta
Company’s
% Interest
2017-18 2016-17
Partners and their Participating Interest (PI)
Country
30%
30% BG Exploration & Production India Limited - 30% ;
India
Oil and Natural Gas Corporation Limited - 40%
Mid and South Tapti
30%
30% BG Exploration & Production India Limited - 30% ;
India
NEC - OSN - 97/2*
KG - DWN - 98/3
GS - OSN - 2000/1
CB-ONN-2003/1
Block M-17 #
Oil and Natural Gas Corporation Limited - 40%
66.67%
60%
60% BP Exploration (Alpha) Limited - 33.33%
60% Niko (NECO) Limited - 10% ;
India
India
BP Exploration (Alpha) Limited - 30%
90%
70%
-
90% Hardy Exploration and Production (India) Inc. - 10% India
India
70% BP Exploration (Alpha) Limited - 30%
Myanmar
96% United National Resources Development Services
Company Limited (UNRD) - 4%
Block M-18 #
-
96% United National Resources Development Services
Myanmar
9
10
EFS JDA Partnership
Atlas Reliance Marcellus Joint
Venture Partnership
Company Limited (UNRD) - 4%
45%
40%
45% Pioneer Natural Resources USA Inc. - 46.354%;
40% Chevron Upstream Northeast LLC - 60%
11
Carrizo Marcellus Joint Venture ^
-
60% Carrizo Marcellus LLC - 40%
USA
USA
USA
*
During the year the assignment of 6.67% PI of Niko (NELLPIO) Limited to the Company has been approved by Government of India, hence change
in the Company’s % Interest.
# Myanmar Blocks M-17 & M -18 were relinquished during the year on completion of Technical Evaluation Assessment Period.
^
Reliance Marcellus II, LLC (RM II), a subsidiary of the Company signed a Purchase and Sale Agreement (“PSA”) on 5 October, 2017 with BKV
Chelsea, LLC for sale of its assets in Susquehana, Clearfield and Wyoming counties effective 1 April, 2017, for an initial consideration of $126
million adjustable for revenue and expenditure post effective date and subject to closing conditions being met. Additionally, Reliance II LLC
would be entitled to receive additional contingent consideration of upto $11.25 million upon certain conditions being met as per PSA (presently
estimated at Nil). The transaction closed on 21 November, 2017 (closing date) and Reliance II LLC received an initial adjusted consideration of
$110.32 million. The final settlement will take place on or before 150 days from the closing date.
29.2 Quantities of Company’s Interest (on gross basis) in Proved Reserves and Proved Developed Reserves:
Reserves in India
Proved Reserves
(Million MT**)
Proved Developed
Reserves
(Million MT**)
Reserves outside India (North America)
Proved Developed
Proved Reserves
Reserves
(Million MT**)
(Million MT**)
Oil:
Opening Balance
Revision of estimates
Production
Closing Balance
** 1 MT = 7.5 bbl
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
3.71
(0.04)
(0.28)
3.39
4.32
(0.26)
(0.35)
3.71
0.58
(0.04)
(0.28)
0.26
1.05
(0.12)
(0.35)
0.58
10.91
0.33
(0.72)
10.52
21.27
(9.30)
(1.06)
10.91
3.68
0.46
(0.72)
3.42
5.88
(1.14)
(1.06)
3.68
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
401
Reserves in India
Proved Reserves
(Million M3#)
Proved Developed
Reserves
(Million M3#)
Reserves outside India (North America)
Proved Developed
Proved Reserves
(Million M3#)
Reserves
(Million M3#)
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
2017-18
2016-17
60,951
(2,563)
-
(1,909)
56,479
71,731
(8,500)
-
(2,280)
60,951
14,297
(1,187)
-
(1,909)
11,201
14,582
1,995
-
(2,280)
14,297
40,661
5,180
(5,221)
(2,529)
38,091
46,790
(3,227)
-
(2,902)
40,661
20,049
988
(3,952)
(2,529)
14,556
21,762
1,189
-
(2,902)
20,049
Gas:
Opening Balance
Revision of estimates
Sale during the year^
Production
Closing Balance
# 1 cubic meter (M3) = 35.315 cubic feet and 1 cubic feet = 1000 BTU
^ Sale of upstream assets in Carrizo Marcellus Joint Venture
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.
29.3
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 the arbitration is currently underway. Pending decision of the arbitration, the demand from the GOI of $ 148
million being the Company’s Share (total demand $ 247 million) towards additional Profit Petroleum has been considered as
contingent liability.
29.4 (a)
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 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. The arbitration hearings are over and the arbitral award is
awaited.
(b)
(c)
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 30.3 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 customer to Gas Pool Account is ` 295 crore (net) as at 31st March, 2018 is disclosed under Other Non -Current
Assets. Revenue has been recognized at the GOI notified prices in respect of gas quantities sold from D1D3 field
from 1st November, 2014.
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 Contract 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 Arbitration Tribunal by majority issued a final partial award (“FPA”), and separately, two dissenting
opinions in the matter on 12 October 2016. The FPA does not conclude these proceedings as: (1) the Claimants have
challenged certain parts of the FPA before the English Commercial Court and the Court has delivered its judgment
on 16 April 2018 wherein it decided one of the issues in Claimants favour and this issue will be now remitted back
to the Tribunal for determination; and (2) after this determination there are two further phases of the arbitration to
be determined by the Tribunal viz. CRL Increase and Quantification of Final Award yet to take place. The Company
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
402
has been notified by Government of its computation of the purported share of Government’s Profit Petroleum
and Royalty alleged to be payable by the Contractor pursuant to the Government’s interpretation of the FPA. In
Company’s view Government’s demand notice is premature since the quantification of liabilities (if any) of the parties
arising out of FPA have to be determined by the Arbitration Tribunal after the Parties have made their respective
submissions on CRL increase and quantification. The Company has already responded to the Government’s demand
notice appropriately. The Company is in the process of reviewing the English court judgment and will take appropriate
next steps.
(d)
NTPC had filed a suit for specific performance of a contract for supply of natural gas by the Company 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 the Company is of the view that NTPC’s claim lacks merit and no binding contract for supply
of gas was executed between NTPC and the Company.
(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.
30. CONTINGENT LIABILITIES AND COMMITMENTS
(I)
Contingent Liabilities
(A) Claims against the Company / disputed liabilities not
acknowledged as debts*
(i)
(ii)
In respect of Joint Ventures
In respect of Others
(B) Guarantees
(i)
(ii)
Guarantees to Banks and Financial Institutions against credit
facilities extended to third parties and other Guarantees
(a)
In respect of Joint Ventures
In respect of Others
(b)
Performance Guarantees
(a)
(b)
In respect of Joint Ventures
In respect of Others
(iii) Outstanding Guarantees furnished to Banks and Financial
Institutions including in respect of Letters of Credits
(a)
(b)
In respect of Joint Ventures
In respect of Others
(C) Other Money for which the Company is contingently liable
Liability in respect of bills discounted with Banks (including third party
bills discounting)
(i)
In respect of Others
(II) Commitments
(A)
Estimated amount of contracts remaining to be executed on
capital account and not provided for:
In respect of Joint Ventures
(i)
In respect of Others
(ii)
(B) Uncalled Liability on Shares and Other Investments Partly Paid
(C) Other Commitments
(i)
Other Commitments - Investments
2017-18
(` in crore)
2016-17
1,104
2,440
-
4,901
-
1,341
20
5,051
1,142
3,549
-
8,371
-
1,163
20
15,205
-
383
2,986
39,537
3,141
476
901
22,606
94
-
*
The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
403
(III)
(IV)
The Income -Tax Assessments of the Company have been completed up to Assessment Year 2015-16. The total
outstanding demand upto AY 2015-16 amounts to ` 11 crore as on date (i.e 27th April, 2018). Based on the decisions of the
Appellate authorities and the interpretations of other relevant provisions of the Income tax Act, 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 had passed an Order under section 11B of the Securities and Exchange
Board of India Act, 1992 on 24th March, 2017 on a Show Cause Notice dated 16th December, 2010 issued to the Company
in the matter concerning trading in the shares of Reliance Petroleum Limited 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 the Company 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 filed an
appeal against the said Order before the Hon’ble Securities Appellate Tribunal (‘SAT’). SAT has stayed the direction on
disgorgement till the next date of hearing and the prohibition from dealing in equity derivatives in the Futures and Options
segment expired on 23rd March, 2018.
31. CAPITAL MANAGEMENT
The Group adheres to a disciplined Capital Management framework, the pillars of which are as follows:
a)
b)
c)
Maintain diversity of sources of financing and spreading the maturity across tenure buckets in order to minimize liquidity
risk.
Maintain investment grade ratings for all issuing entities, domestically and internationally by ensuring that the financial
strength of their Balance Sheets are preserved.
Manage financial market risks arising from foreign exchange, interest rates and commodity prices, and minimise the impact
of market volatility on earnings.
d)
Leverage optimally in order to maximise shareholder returns while maintaining strength and flexibility of Balance Sheet.
This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market
conditions and interest rates environment.
The Net Gearing Ratio at the 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 Ratio (A/B)
As at
31st March, 2018
2,18,763
78,063
1,40,700
2,93,506
0.48
(` in crore)
As at
31st March, 2017
1,96,599
77,226
1,19,373
2,63,709
0.45
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
404
32. FINANCIAL INSTRUMENTS
A.
Fair Value Measurement Hierarchy
Particulars
Financial Assets
At Amortised Cost
Investments*
Trade Receivables
Cash and Cash Equivalents
Loans
Other Financial Assets
At FVTPL
Investments
Other Financial Assets
At FVTOCI
Investments
Financial Liabilities
At Amortised Cost
Borrowings
Trade Payables
Other Financial Liabilities
At FVTPL
Other Financial Liabilities
At FVTOCI
Other Financial Liabilities
Carrying
Amount
4,132
17,555
4,255
4,995
7,059
As at
31st March, 2018
(` in crore)
As at
31st March, 2017
Level of input used in
Level 2
Level 1
Level 3
Carrying
Amount
Level of input used in
Level 2
Level 1
Level 3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,329
8,177
3,023
3,704
7,739
-
-
-
-
-
-
-
-
-
-
49,128
1,389
40,798
-
8,152
1,389
178
-
44,490
796
39,488
35
4,900
761
27,503
24,208
2,550
745
32,170
27,045
5,090
2,18,763
1,06,861
93,700
2,750
84
-
-
-
-
-
-
-
-
2,750
84
- 1,96,599
76,595
-
95,781
-
-
-
4,862
-
-
-
-
-
-
-
-
-
4,862
-
-
-
-
-
-
102
-
35
-
-
-
-
-
*
Exclude Investments in Associates and Joint Ventures [` 2,099 crore (Previous Year ` 2,910 crore)] measured at cost (Refer Note 2.1).
The financial instruments are categorized into three 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;
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly; and
Level 3: Inputs based on unobservable market data.
Valuation Methodology
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:
a)
b)
c)
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 observable forward
exchange rates and yield curves at the balance sheet date.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
405
d)
e)
The fair value of over-the-counter Foreign Currency Option and Interest Rate Swaption contracts is determined
using the Black Scholes valuation model.
Commodity derivative contracts are valued using 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.
B.
Financial Risk Management
The different types of risks the Group is exposed to are market risk, commodity risk, credit risk and liquidity risk. The group
uses derivative financial instruments such as forwards, options and swap contracts to minimise any adverse effect on its
financial performance. All such activities are undertaken within an approved Risk Management Policy framework.
i)
a)
Market Risk
Foreign Currency Risk
Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of
changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which are
denominated in currencies other than Indian Rupee.
The following table shows foreign currency exposures in US Dollar, Euro and Japanese Yen on financial instruments at
the end of the reporting period. The exposure to all other foreign currencies are not material.
Particulars
Borrowings
Trade and Other Payables
Trade and Other Receivables
Derivatives
- Forwards and Futures
- Currency Swaps
- Options
Exposure
Foreign Currency Exposure
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
USD
88,980
92,174
(7,782)
EUR
9,757
1,905
(93)
(60,392)
(1,922)
(3,855)
1,07,203
(11,320)
-
-
249
JPY
1,722
72
-
(1,711)
-
-
83
USD
1,08,647
72,401
(6,301)
(72,691)
2,478
1,076
1,05,610
EUR
8,498
1,724
(55)
(9,310)
-
-
857
JPY
1,673
186
565
(1,821)
-
-
603
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
406
b)
Interest Rate Risk
The Group’s exposure to the risk of changes in market interest rate relates to the floating rate debt obligations and
derivative products taken to mitigate interest rate risk.
The exposure of the Group’s borrowings and derivatives to interest rate changes at the end of the reporting period
are as follows:
Interest Rate Exposure
Particulars
Borrowings
Non-Current - Floating (Includes Current Maturities)*
Non-Current - Fixed (Includes Current Maturities)*
Current#
Total
Derivatives
Foreign Currency Interest Rate Swaps
Rupees Interest Rate Swaps
Currency Swaps
Total
(` in crore)
As at
31st March, 2018
As at
31st March, 2017
90,201
91,947
38,144
2,20,292
10,863
17,705
(1,922)
26,646
91,338
74,157
31,606
1,97,101
27,829
9,995
2,478
40,302
*
#
Include ` 814 crore (Previous Year ` 424 crore) as Prepaid Financial Charges.
Include ` 715 crore (Previous Year ` 78 crore) as Commercial Paper Discount.
ii)
Commodity Price Risk
Commodity price risk arises due to fluctuation in prices of crude oil, other feed stock and products and bullion.
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 as well as Exchange Traded Futures, Options and Swap contracts to hedge its commodity and
freight exposure.
iii) 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 Group. Credit risk arises from Group’s activities in investments, dealing in derivatives
and receivables from customers.
The Group has a prudent and conservative process for managing its credit risk arising in the course of its business
activities. Credit risk across the Group, is actively managed through Letters of Credit, Bank Guarantees, Parent
Group Guarantees, advance payments, security deposits and factoring and forfaiting without recourse to Group. The
Group restricts its fixed income investments in liquid securities carrying high credit rating.
iv)
Liquidity Risk
Liquidity risk arises from the Group’s inability to meet its cash flow commitments on the due date. The Group
maintains sufficient stock of cash, marketable securities and committed credit facilities. The Group accesses global
and local 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.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
407
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
Borrowings
Non-Current*
Current#
Total
Derivative Liabilities
Forwards
Options
Currency Swaps
Interest Rate Swaps
Total
*
#
Include ` 814 crore as Prepaid Finance Charges.
Include ` 715 crore as Commercial Paper Discount.
(` in crore)
Maturity Profile as at 31st March, 2018
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
3-5
Years
Above
5 Years
Total
3,699
29,629
33,328
12,433
4,890
17,323
21,169
3,625
24,794
51,871
-
51,871
45,588
-
45,588
47,388
-
47,388
1,82,148
38,144
2,20,292
1,176
27
-
53
1,256
244
18
-
5
267
220
53
44
10
327
55
-
693
11
759
-
-
(14)
125
111
-
-
-
-
-
1,695
98
723
204
2,720
(` in crore)
Particulars
Borrowings
Non-Current**
Current##
Total
Derivative Liabilities
Forwards
Options
Currency Swaps
Interest Rate Swaps
Total
Maturity Profile as at 31st March, 2017
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
3-5
Years
Above
5 Years
Total
4,280
29,170
33,450
1,340
33
-
58
1,431
1,511
2,349
3,860
456
64
-
1
521
7,132
87
7,219
898
62
42
175
1,177
68,211
-
68,211
31,227
-
31,227
53,134
-
53,134
1,65,495
31,606
1,97,101
423
-
485
51
959
-
-
200
74
274
-
-
-
-
-
3,117
159
727
359
4,362
** Include ` 424 crore as Prepaid Finance Charges.
## Include ` 78 crore as Commercial Paper Discount.
C. Hedge Accounting
The Group’s business objective includes safe-guarding its 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. The Group 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, over-the-counter 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 on the balance sheet date.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
408
Disclosure of effect of Hedge Accounting:
A. Fair Value Hedge
Hedging Instruments
Particulars
Nominal
Value
Quantity
Carrying Amount
(Kbbl)
(Kgs)
Assets
Liabilities
Changes
in Fair Value
(` in crore)
Line Item in
Hedge
Maturity
Balance Sheet
As at 31st March, 2018
Foreign Currency Risk
-
-
-
-
-
-
-
Commodity Price Risk
Derivative Contracts
Foreign Currency Risk
Foreign Currency
Risk Component -
Borrowings
Commodity Price Risk
Derivative Contracts
Hedged Items
Particulars
Foreign Currency Risk
29,393
2,34,884
4,002
197
826
(823)
34,101
-
-
-
32,511
1,590
20,886
2,37,540
3,765
382
55
327
January 2018
to December
2020
Other Financial
Assets / Liabilities
As at 31st March, 2017
April 2017 to
March. 2018
Borrowings -
Non-Current
April 2017 to
December
2020
Other Financial
Assets / Liabilities
(` in crore)
Line Item in Balance Sheet
As at 31st March, 2018
Other Current Assets / Liabilities
Other Current Assets
Inventories
As at 31st March, 2017
Carrying Amount
Assets
Liabilities
Changes
in Fair Value
-
55
346
5,566
-
29
-
-
-
208
358
257
-
1,590
1,590 Other Financial Liabilities - Current
3
-
6,328
250
116
16
247
116
(36)
Other Current Assets / Liabilities
Other Current Liabilities
Inventories
Commodity Price Risk
Firm Commitments for purchase of feedstock and freight
Firm Commitments for sale of products
Inventories
Foreign Currency Risk
Export Firm Commitments
Commodity Price Risk
Firm Commitments for purchase of feedstock and freight
Firm Commitments for sale of products
Inventories
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
409
B. Cash Flow Hedge
Hedging Instruments
Particulars
Nominal
Value
Carrying Amount
Assets
Liabilities
Changes in
Fair Value
Hedge
Maturity
(` in crore)
Line Item in Balance Sheet
Foreign Currency Risk
-
Interest Rate Risk
Interest Rate Swap
2,546
-
53
-
-
-
43
As at 31st March, 2018
-
April 2022 to
June 2022
Other Financial Assets
As at 31st March, 2017
Foreign Currency Risk
Foreign Currency Risk
Component - Borrowings
Hedged Items
Particulars
37,221
-
35,485
1,736
April 2017 to
Mach. 2018
Borrowings - Non-Current
Nominal Value
Changes in Fair Value
Hedge Reserve
(` in crore)
Line Item in
Balance Sheet
As at 31st March, 2018
Foreign Currency Risk
-
Interest Rate Risk
Interest Rate Risk Component
2,546
-
-
-
43
Borrowings -
Non-Current
As at 31st March, 2017
Foreign Currency Risk
Highly Probable Exports
37,221
1,736
1,736
Other Equity
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
410
33. 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 five principal operating and reporting segments; viz. Refining, Petrochemicals, Oil and Gas, Organised Retail and
Digital Services.
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)
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”.
b)
(i)
Primary Segment Information
(` in crore)
Particulars
1
2
3
Segment Revenue
External Turnover
Inter Segment
Turnover
Value of Sales and
Services (Revenue)*
Less: GST Recovered
Revenue from Operations
(Net of GST)
Segment Result before
Interest and Taxes
Less: Interest Expense
Add: Interest Income
Profit Before Tax
Less: Current Tax
Less: 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
Refining
Organised Retail Digital Services
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
Petrochemicals
Unallocable
Oil and Gas
Others
Total
2,28,997 1,96,146 1,14,229
11,070
54,687
77,098
86,600
5,872
4,966
238
5,191
-
68,729
469
33,452
313
4,685
19,231
541
58
9,125
3,492
8,250
2,369
3,06,095 2,50,833 1,25,299
92,472
5,204
5,191
69,198
33,765
23,916
599
12,617
10,619
696
9,390
3,05,399 2,50,833 1,15,909
-
-
92,472
-
5,204
-
5,191
6,952
62,246
-
33,765
3,091
20,825
-
599
2,337
10,280
-
10,619
-
-
-
-
-
- 4,30,731 3,30,180
-
-
-
- 4,30,731 3,30,180
22,466
-
-
- 4,08,265 3,30,180
25,869
25,056
21,179
12,990
(1,536)
(1,584)
2,064
784
3,174
(52)
1,636
974
2,140
2,730
54,526
40,898
25,869
25,056
21,179
12,990
(1,536)
(1,584)
2,064
784
3,174
(52)
1,636
25,869
25,056
21,179
12,990
(1,536)
(1,584)
2,064
784
3,174
(52)
1,636
974
8,052
2,952
(2,960)
10,098
3,248
974 (16,306)
3,849
2,985
1,866
8,880
1,321
(8,335)
8,052
2,952
49,426
10,098
3,248
36,080
3,849
2,985
40,034
8,880
1,321
29,833
8
(12)
1
-
-
-
(71)
(22)
(4)
-
61
102
-
-
(5)
68
25,877
25,044
21,180
12,990
(1,536)
(1,584)
1,993
762
3,170
(52)
1,697
1,076 (16,306)
(8,335)
36,075
29,901
2,01,539 1,79,685 1,23,775 1,11,775
70,473
1,67,221 1,37,255
21,568
13,600
3,475
3,559
79,660
8,953
4,681
15,319
3,121
37,310
47,210
(1,277)
3,203
42,225
53,904
6,168
2,841
24,433
14,925
4,837
465
11,396 2,49,730 1,97,679
5,260 1,48,747 1,29,287
68,230
48,145
24
3,630
781
395
52,833
9,596
8,165
962
38,931 1,26,728 1,30,648 8,16,348 7,12,339
6,180 3,48,989 3,09,980 8,16,348 7,12,339
79,253 1,14,742
1,465
2,930
11,646
16,706
624
728
(4,889)
644
* Total Value of Sales and Services is after elimination of inter segment turnover of ` 1,11,598 crore (Previous Year ` 63,299 crore).
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice
411
(ii)
Inter segment pricing are at Arm’s length basis.
(iii)
As per Indian Accounting Standard 108 - Operating Segments, the Company has reported segment information on
consolidated basis including businesses conducted through its subsidiaries.
(iv)
The reportable segments are further described below:
–
–
–
–
–
–
The Refining segment includes production and marketing operations of the petroleum products.
The Petrochemicals segment includes production and marketing operations of petrochemical products namely,
High density Polyethylene, Low density Polyethylene, Linear Low density Polyethylene, Polypropylene, Polyvinyl
Chloride, Polyester Yarn, Polyester Fibres, Purified Terephthalic Acid, Paraxylene, Ethylene Glycol, Olefins, Aromatics,
Linear Alkyl Benzene, Butadiene, Acrylonitrile, Poly Butadiene Rubber, Styrene Butadiene Rubber, 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 Digital Services segment includes range of digital services in India.
The business, which were not reportable segments during the year, have been grouped under the “Others” segment.
This mainly comprises of:
•
•
•
Media
SEZ Development
Textile
(v) Secondary Segment Information
1
2
Segment Revenue – External Turnover
Within India
Outside India
Total
Non-Current Assets
Within India
Outside India
Total
2017-18
2,09,093
2,21,638
4,30,731
6,09,272
23,290
6,32,562
` in crore
2016-17
1,52,197
1,77,983
3,30,180
5,38,852
26,674
5,65,526
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements
412
34. ENTERPRISES CONSOLIDATED AS SUBSIDIARY IN ACCORDANCE WITH INDIAN ACCOUNTING
STANDARD 110 - CONSOLIDATED FINANCIAL STATEMENTS
Name of the Enterprise
Sr.
No.
Adventure Marketing Private Limited
1
AETN18 Media Private Limited
2
Affinity Names Inc.*
3
Aurora Algae Inc.*
4
Aurora Algae Pty Limited*
5
Capital18 Fincap Private Limited
6
Colorful Media Private Limited
7
Colosceum Media Private Limited
8
Digital18 Media Limited
9
Dreketi S.A.*
10
E-18 Limited
11
e-Eighteen.com Limited
12
Equator Trading Enterprises Private Limited
13
Ethane Crystal LLC
14
Ethane Emerald LLC
15
Ethane Opal LLC
16
Ethane Pearl LLC
17
Ethane Sapphire LLC
18
Ethane Topaz LLC
19
Greycells18 Media Limited
20
IBN18 (Mauritius) Limited
21
Independent Media Trust
22
IndiaCast Media Distribution Private Limited
23
IndiaCast UK Limited
24
IndiaCast US Limited
25
Indiawin Sports Private Limited
26
Infomedia Press Limited
27
Jio Information Solutions Limited (Formerly known as Reliance Textiles Limited)
28
29
Kanhatech Solutions Limited
30 Model Economic Township Limited
31 Moneycontrol Dot Com India Limited
Naroda Power Private Limited
32
Network18 Holdings Limited
33
Network18 Media & Investments Limited
34
Network18 Media Trust
35
Panorama Television Private Limited
36
Petroleum Trust
37
RB Holdings Private Limited
38
RB Media Holdings Private Limited
39
RB Mediasoft Private Limited
40
Recron (Malaysia) Sdn. Bhd.*
41
Reed Infomedia India Private Limited
42
Reliance Ambit Trade Private Limited
43
Reliance Aromatics and Petrochemicals Limited
44
Reliance Brands Limited
45
Reliance Chemicals Limited
46
Reliance Clothing India Private Limited
47
* Subsidiary Company having 31st December as reporting date.
Country of
Incorporation
India
India
USA
USA
Australia
India
India
India
India
Uruguay
Mauritius
India
India
Marshall Islands
Marshall Islands
Marshall Islands
Marshall Islands
Marshall Islands
Marshall Islands
India
Mauritius
India
India
UK
USA
India
India
India
India
India
India
India
Mauritius
India
India
India
India
India
India
India
Malaysia
India
India
India
India
India
India
Proportion of
Ownership Interest
100.00%
21.27%
100.00%
100.00%
100.00%
73.16%
100.00%
73.16%
73.16%
100.00%
73.16%
67.27%
41.70%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
54.30%
41.70%
100.00%
31.48%
31.48%
31.48%
100.00%
37.08%
100.00%
100.00%
100.00%
67.27%
100.00%
73.16%
73.16%
73.16%
41.70%
100.00%
100.00%
100.00%
100.00%
100.00%
73.16%
100.00%
100.00%
75.56%
100.00%
94.40%
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice Sr.
No.
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
84
85
86
87
88
89
90
91
92
93
94
95
96
Name of the Enterprise
Reliance Commercial Dealers Limited
Reliance Comtrade Private Limited
Reliance Content Distribution Limited
Reliance Corporate IT Park Limited
Reliance Digital Media Distribution 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 Lifestyle India Private Limited (Formerly known as Reliance Brands
Luxury Private Limited)
Reliance Gas Pipelines Limited
Reliance Global Energy Services (Singapore) Pte Ltd.
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 Digital Services 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 Limited
Reliance Jio Messaging Services Limited
Reliance Lifestyle Holdings Limited
Reliance LNG Limited
Reliance Marcellus II LLC*
Reliance Marcellus LLC*
Reliance Payment Solutions Limited
Reliance Petro Marketing 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 Universal Enterprises Limited
* Subsidiary Company having 31st December as reporting date.
413
Country of
Incorporation
India
India
India
India
India
USA
USA
USA
USA
India
India
India
Singapore
UAE
India
Proportion of
Ownership Interest
99.99%
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%
38.54%
India
Singapore
UK
USA
India
UAE
India
India
USA
India
Singapore
UK
USA
India
India
India
India
India
USA
USA
India
India
India
India
India
India
India
India
India
India
India
India
India
India
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%
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%
94.40%
94.45%
74.90%
100.00%
100.00%
100.00%
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements 414
Name of the Enterprise
Reliance Universal Traders Private Limited
Reliance Vantage Retail Limited
Reliance Ventures Limited
Sr.
No.
97
98
99
100 Reliance World Trade Private Limited
101 Reliance-GrandOptical Private Limited
102 Resolute Land Consortium Projects Limited
103 RIL Exploration and Production (Myanmar) Company Limited
104 RIL USA, Inc.*
105 Roptonal Limited
106 RP Chemicals (Malaysia) Sdn. Bhd.*
107 RRB Investments Private Limited
108 RRB Mediasoft Private Limited
109 RRK Finhold Private Limited
110 RVT Finhold Private Limited
111 RVT Media Private Limited
112 Santol Commercials Private Limited
113 Setpro18 Distribution Limited
114 Surela Investment and Trading Private Limited
115 Tangerine Agro Private Limited
116 Television Eighteen Mauritius Limited
117 Television Eighteen Media and Investment Limited
118 TV18 Broadcast Limited
119 Viacom18 Media (UK) Limited
120 Viacom18 Media Private Limited
121 Viacom18 US Inc.
122 Watermark Infratech Private Limited
123 Web18 Holdings Limited
124 Web18 Software Services Limited
* Subsidiary Company having 31st December as reporting date.
Country of
Incorporation
India
India
India
India
India
India
Myanmar
USA
Cyprus
Malaysia
India
India
India
India
India
India
India
India
India
Mauritius
Mauritius
India
UK
India
USA
India
Mauritius
India
Proportion of
Ownership Interest
100.00%
100.00%
100.00%
100.00%
94.40%
100.00%
100.00%
100.00%
21.27%
100.00%
73.16%
100.00%
73.16%
73.16%
41.70%
100.00%
73.16%
100.00%
100.00%
73.16%
73.16%
41.70%
21.27%
21.27%
21.27%
100.00%
73.16%
73.16%
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice 415
35. 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
Sr.
No.
24 X 7 Learning Private Limited
1
Aeon Learning Private Limited
2
Big Tree Entertainment DMCC
3
Big Tree Entertainment Lanka Private Limited
4
Big Tree Entertainment Private Limited
5
Big Tree Entertainment Singapore Pte Limited
6
Brooks Brothers India Private Limited
7
Clayfin Technologies Private Limited (Formerly Vayana Private Limited)
8
D. E. Shaw India Securities Private Limited
9
Diesel Fashion India Reliance Private Limited
10
Dyulok Technologies Private Limited
11
Eenadu Television Private Limited
12
Fantain Sports Private Limited
13
Foodfesta Wellcare Private Limited
14
Football Sports Development Limited
15
Gaurav Overseas Private Limited
16
Genesis La Mode Private Limited
17
Genesis Luxury Fashion Private Limited
18
GenNext Ventures Investment Advisers LLP
19
GLB Body Care Private Limited
20
GLB Perfumes and Beauty Private Limited
21
GLF Lifestyle Brands Private Limited
22
GML India Fashion Private Limited
23
Gujarat Chemical Port Terminal Company Limited
24
IBN Lokmat News Private Limited
25
Iconix Lifestyle India Private Limited
26
IMG Reliance Limited
27
India Gas Solutions Private Limited
28
Indian Vaccines Corporation Limited
29
30
Jio Payments Bank Limited
31 M Entertainments Private Limited
32 Marks and Spencer Reliance India Private Limited
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
NW18 HSN Holdings PLC
PT Big Tree Entertainment Indonesia
Reliance Bally India Private Limited (Formerly Reliance Luxury Fashion Private Limited)
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Reliance Paul & Shark Fashions Private Limited
Reliance-GrandVision India Supply Private Limited
Reliance-Vision Express Private Limited
Ryohin-Keikaku Reliance India Private Limited
Shop CJ Network Private Limited
SpaceBound Web Labs Private Limited
Supreme Tradelinks Private Limited
The Indian Film Combine Private Limited
Townscript USA, Inc.
TV18 Home Shopping Network Limited
Ubona Technologies Private Limited
Vay Network Services Private Limited
Zegna South Asia Private Limited
Country of
Incorporation
India
India
UAE
Sri Lanka
India
Singapore
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Cyprus
Indonesia
India
UK
India
India
India
India
India
India
India
India
India
USA
India
India
India
India
Proportion of
Ownership Interest
27.24%
14.98%
28.58%
28.58%
28.58%
28.58%
37.02%
39.15%
50.00%
37.02%
20.22%
10.22%
17.05%
28.58%
55.00%
50.00%
35.20%
35.20%
50.00%
35.20%
35.20%
35.20%
35.20%
41.80%
20.85%
37.78%
50.00%
50.00%
33.33%
70.00%
20.00%
46.26%
30.14%
28.58%
37.78%
50.00%
45.43%
37.78%
47.20%
47.20%
37.02%
31.93%
28.58%
46.26%
20.00%
20.22%
31.93%
36.58%
39.15%
37.02%
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements 416
36. 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
Adventure Marketing Private Limited
AETN18 Media Private Limited
Capital18 Fincap Private Limited
Colorful Media Private Limited
Colosceum Media Private Limited
Digital18 Media Limited
e-Eighteen.com Limited
Equator Trading Enterprises Private Limited
Greycells18 Media Limited
Independent Media Trust
IndiaCast Media Distribution Private Limited
Indiawin Sports Private Limited
Infomedia Press Limited
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
Jio Information Solutions Limited
Kanhatech Solutions Limited
Model Economic Township Limited
Moneycontrol Dot Com India Limited
Naroda Power Private 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 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 Comtrade Private Limited
Reliance Content Distribution Limited
Reliance Corporate IT Park Limited
Reliance Digital Media Distribution Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Energy and Project Development Limited
Net Assets i.e. Total
Assets minus
Total Liabilities
As % of
consolidated
Net Assets
Amount
(` in crore)
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Amount
(` in crore)
As % of
consolidated
Profit or
Loss
As % of
consolidated
Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated
Total
Comprehensive
Income
Amount
(` in crore)
107.20 3,14,647.30
93.17
33,612.47
213.75
(3,503.43)
87.43
30,109.04
0.13
0.02
0.03
0.13
0.01
0.00
0.03
0.46
(0.00)
1.15
0.02
0.07
(0.01)
0.00
0.02
1.44
0.00
(0.00)
0.84
(0.00)
(0.06)
3.50
0.00
0.13
0.14
(0.00)
0.27
0.95
0.19
0.89
(0.01)
0.08
0.04
0.00
3.40
(0.00)
1.31
0.38
382.99
68.03
95.70
382.98
18.24
5.95
85.07
1,338.45
(13.86)
3,365.61
71.66
204.77
(33.94)
0.01
70.84
4,231.64
0.25
(0.09)
2,476.25
(0.01)
(175.17)
10,259.97
0.09
383.38
414.10
(0.02)
778.41
2,780.06
545.47
2,604.94
(19.82)
226.53
118.04
0.03
9,992.07
(0.01)
3,836.25
1,111.59
(0.00)
(0.02)
0.00
(0.00)
0.01
0.00
0.04
(0.00)
(0.01)
(0.00)
0.00
(0.01)
(0.01)
(0.00)
0.00
(0.02)
(0.00)
(0.00)
(0.18)
(0.00)
(0.45)
0.00
(0.00)
0.00
(0.00)
(0.00)
0.00
(0.00)
(0.01)
(0.00)
(0.02)
0.01
(0.00)
(0.00)
1.38
(0.00)
0.00
(0.00)
(0.00)
(8.59)
0.60
(0.00)
2.18
1.48
14.60
(0.15)
(4.76)
(0.00)
0.67
(2.17)
(3.10)
(0.01)
0.41
(7.28)
(0.00)
(0.00)
(64.48)
(0.00)
(164.01)
0.01
(0.01)
0.00
(0.00)
(0.03)
0.11
(0.09)
(4.85)
(0.24)
(6.52)
3.72
(0.01)
(0.02)
498.74
(0.02)
0.13
(0.09)
-
0.00
(0.05)
-
0.00
0.00
0.01
-
(0.00)
-
(0.01)
(0.00)
(0.00)
-
-
(0.00)
-
-
(0.08)
-
(0.00)
-
-
-
-
-
-
-
(0.04)
-
(0.00)
(0.02)
-
-
(0.48)
-
-
-
-
(0.03)
0.85
-
(0.01)
(0.05)
(0.19)
-
0.03
-
0.17
0.01
0.00
-
-
0.03
-
-
1.27
-
0.05
-
-
-
-
-
-
-
0.64
-
0.02
0.25
-
-
7.84
-
-
-
(0.00)
(0.03)
0.00
(0.00)
0.01
0.00
0.04
(0.00)
(0.01)
(0.00)
0.00
(0.01)
(0.01)
(0.00)
0.00
(0.02)
(0.00)
(0.00)
(0.18)
(0.00)
(0.48)
0.00
(0.00)
0.00
(0.00)
(0.00)
0.00
(0.00)
(0.01)
(0.00)
(0.02)
0.01
(0.00)
(0.00)
1.47
(0.00)
0.00
(0.00)
(0.00)
(8.62)
1.45
(0.00)
2.17
1.43
14.41
(0.15)
(4.73)
(0.00)
0.84
(2.16)
(3.10)
(0.01)
0.41
(7.25)
(0.00)
(0.00)
(63.21)
(0.00)
(163.96)
0.01
(0.01)
0.00
(0.00)
(0.03)
0.11
(0.09)
(4.21)
(0.24)
(6.50)
3.97
(0.01)
(0.02)
506.58
(0.02)
0.13
(0.09)
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice 417
Name of the Enterprise
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
78
79
80
81
82
83
84
Reliance Energy Generation and Distribution Limited
Reliance GAS Lifestyle India Private Limited
Reliance Gas Pipelines Limited
Reliance Industrial Investments and Holdings Limited
Reliance Innovative Building Solutions Private Limited
Reliance Jio Digital Services Limited
Reliance Jio Infocomm Limited
Reliance Jio Infratel Private Limited
Reliance Jio Media Limited
Reliance Jio Messaging Services Limited
Reliance Lifestyle Holdings Limited
Reliance LNG Limited
Reliance Payment Solutions Limited
Reliance Petro Marketing 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 Universal Enterprises Limited
Reliance Universal Traders Private Limited
Reliance Vantage Retail Limited
Reliance Ventures Limited
Reliance World Trade Private Limited
Reliance-GrandOptical Private Limited
Resolute Land Consortium Projects Limited
RRB Investments Private Limited
RRB Mediasoft Private Limited
RRK Finhold Private Limited
RVT Finhold Private Limited
RVT Media Private Limited
Santol Commercials Private Limited
Setpro18 Distribution Limited
Surela Investment and Trading Private Limited
Tangerine Agro Private Limited
TV18 Broadcast Limited
TV18 Home Shopping Network Limited
Viacom18 Media Private Limited
Watermark Infratech Private Limited
Web18 Software Services Limited
Net Assets i.e. Total
Assets minus
Total Liabilities
As % of
consolidated
Net Assets
Amount
(` in crore)
10,871.21
3.70
99.89
0.03
742.15
0.25
19,072.31
6.50
21.41
0.01
0.00
7.34
35.07 1,02,932.76
0.45
0.00
84.65
0.03
94.01
0.03
69.26
0.02
-
-
920.12
0.31
123.45
0.04
2,501.73
0.85
2,537.55
0.86
632.52
0.22
2,816.95
0.96
101.97
0.03
14.12
0.00
9,066.46
3.09
6,997.26
2.38
1,551.11
0.53
(10.93)
(0.00)
2,108.67
0.72
3,416.63
1.16
264.68
0.09
156.70
0.05
3,697.66
1.26
6,133.63
2.09
0.02
0.00
-
-
6.63
0.00
293.87
0.10
0.09
0.00
28.44
0.01
105.93
0.04
-
-
(1.56)
(0.00)
(0.55)
(0.00)
-
-
3,792.61
1.29
-
-
1,251.53
0.43
383.00
0.13
(0.43)
(0.00)
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Amount
(` in crore)
As % of
consolidated
Profit or
Loss
(0.00)
(0.00)
0.01
0.01
0.01
(0.00)
2.00
(0.00)
(0.00)
(0.00)
0.01
(0.00)
(0.01)
0.19
0.00
0.00
0.00
0.00
0.00
0.00
3.45
0.00
(0.01)
0.00
0.67
(0.00)
0.01
0.02
0.89
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.27
(0.13)
0.02
0.00
(0.00)
(0.54)
(0.11)
3.08
3.38
3.44
(0.98)
722.96
(0.34)
(0.58)
(1.15)
4.04
(0.04)
(4.88)
69.83
1.40
0.14
0.90
0.01
0.04
1.37
1,243.14
0.49
(3.71)
0.15
241.69
(0.34)
1.82
7.69
321.65
(0.71)
(0.00)
(0.04)
0.21
(0.00)
(0.00)
(0.01)
(0.03)
(0.01)
0.03
(0.04)
(0.01)
96.37
(46.46)
6.68
0.00
(0.01)
As % of
consolidated
Other
Comprehensive
Income
-
-
(0.00)
(28.87)
-
-
(0.33)
-
-
-
0.01
-
(0.00)
(0.52)
(1.91)
-
-
-
-
(0.00)
(0.23)
-
-
(0.22)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.06
(0.02)
(0.08)
-
-
Amount
(` in crore)
-
-
0.03
473.24
-
-
5.41
-
-
-
(0.20)
-
0.01
8.59
31.32
-
-
-
-
0.03
3.75
-
-
3.63
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.91)
0.38
1.28
-
-
As % of
consolidated
Total
Comprehensive
Income
(0.00)
(0.00)
0.01
1.38
0.01
(0.00)
2.12
(0.00)
(0.00)
(0.00)
0.01
(0.00)
(0.01)
0.23
0.10
0.00
0.00
0.00
0.00
0.00
3.62
0.00
(0.01)
0.01
0.70
(0.00)
0.01
0.02
0.93
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.28
(0.13)
0.02
0.00
(0.00)
Amount
(` in crore)
(0.54)
(0.11)
3.11
476.62
3.44
(0.98)
728.37
(0.34)
(0.58)
(1.15)
3.84
(0.04)
(4.87)
78.42
32.72
0.14
0.90
0.01
0.04
1.40
1,246.89
0.49
(3.71)
3.78
241.69
(0.34)
1.82
7.69
321.65
(0.71)
(0.00)
(0.04)
0.21
(0.00)
(0.00)
(0.01)
(0.03)
(0.01)
0.03
(0.04)
(0.01)
95.46
(46.08)
7.96
0.00
(0.01)
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements 418
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
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Amount
(` in crore)
As % of
consolidated
Profit or
Loss
As % of
consolidated
Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated
Total
Comprehensive
Income
Amount
(` in crore)
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
31
32
33
34
35
36
37
38
39
40
41
42
Affinity Names Inc.
Aurora Algae Inc.
Aurora Algae Pty Limited
Dreketi S.A.
E-18 Limited
Ethane Crystal LLC
Ethane Emerald LLC
Ethane Opal LLC
Ethane Pearl LLC
Ethane Sapphire LLC
Ethane Topaz LLC
IBN18 (Mauritius) Limited
IndiaCast UK Limited
IndiaCast US 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 Energy Services (Singapore) Pte Ltd.
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 Exploration and Production (Myanmar) Company Limited
RIL USA, Inc.
Roptonal Limited
RP Chemicals (Malaysia) Sdn. Bhd.
Television Eighteen Mauritius Limited
Television Eighteen Media and Investment Limited
Viacom18 Media (UK) Limited
Viacom18 US Inc.
Web18 Holdings Limited
-
0.00
-
(0.00)
0.04
0.07
0.07
0.07
0.07
0.07
0.07
0.12
0.00
0.00
(0.02)
-
0.34
1.91
0.00
(0.89)
0.00
0.35
0.52
0.02
0.00
(5.56)
0.33
0.01
0.22
0.02
0.08
(0.01)
(0.91)
0.00
0.17
0.11
(0.40)
0.01
0.09
(0.00)
(0.00)
0.08
-
13.67
-
(0.02)
108.45
210.19
198.26
194.35
207.13
192.27
194.16
337.94
6.35
3.01
(45.86)
-
988.65
5,592.64
0.06
(2,599.97)
0.06
1,032.24
1,540.09
47.77
11.81
(16,319.17)
968.92
38.13
650.38
48.15
234.87
(24.91)
(2,660.59)
0.52
507.04
321.68
(1,165.52)
25.06
271.12
(4.29)
(7.98)
225.40
(0.00)
(1.04)
0.68
(0.00)
(0.00)
0.05
0.05
0.05
0.05
0.04
0.04
0.02
(0.00)
(0.00)
(0.01)
0.02
0.03
(0.01)
(0.00)
(4.99)
(26.56)
(0.00)
2.89
0.09
0.01
(0.08)
(374.31)
244.36
(0.02)
(0.13)
16.75
16.75
16.29
16.88
14.73
14.47
8.12
(0.18)
(0.09)
(2.88)
7.22
12.52
(4.98)
(0.00)
(1,799.61)
(9,581.31)
(0.13)
1,043.85
30.89
1.85
(37.04) (13,361.05)
111.53
7.03
6.71
1.38
6.83
1,147.26
(500.40)
(0.00)
133.75
(0.16)
(100.09)
0.26
(6.18)
(0.02)
(0.03)
(0.04)
0.31
0.02
0.02
0.00
0.02
3.18
(1.39)
(0.00)
0.37
(0.00)
(0.28)
0.00
(0.02)
(0.00)
(0.00)
(0.00)
-
-
-
-
(0.17)
(0.33)
(0.33)
(0.33)
(0.60)
(0.41)
(0.69)
-
-
-
-
-
5.32
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.73
5.34
5.47
5.41
9.91
6.71
11.34
-
-
-
-
-
(87.23)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
(1.09)
0.71
(0.00)
0.01
0.06
0.06
0.06
0.08
0.06
0.07
0.02
(0.00)
(0.00)
(0.01)
0.02
(0.22)
(0.01)
(0.00)
(5.23)
(27.82)
(0.00)
3.03
0.09
0.01
(38.80)
0.32
0.02
0.02
0.00
0.02
3.33
(1.45)
(0.00)
0.39
(0.00)
(0.29)
0.00
(0.02)
(0.00)
(0.00)
(0.00)
(0.08)
(374.31)
244.36
(0.02)
2.60
22.09
22.22
21.70
26.79
21.44
25.81
8.12
(0.18)
(0.09)
(2.88)
7.22
(74.71)
(4.98)
(0.00)
(1,799.61)
(9,581.31)
(0.13)
1,043.85
30.89
1.85
(13,361.05)
111.53
7.03
6.71
1.38
6.83
1,147.26
(500.40)
(0.00)
133.75
(0.16)
(100.09)
0.26
(6.18)
(0.02)
(0.03)
(0.04)
Non Controlling Interest in all Subsidiaries
(1.21)
(3,539.20)
(0.01)
(4.93)
0.27
(4.45)
(0.03)
(9.38)
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements 274-425 Notice 419
Net Assets i.e. Total
Assets minus
Total Liabilities
As % of
consolidated
Net Assets
Amount
(` in crore)
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Amount
(` in crore)
As % of
consolidated
Profit or
Loss
As % of
consolidated
Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated
Total
Comprehensive
Income
Amount
(` in crore)
-
0.00
0.05
0.01
0.00
0.10
0.00
0.00
0.00
0.00
0.09
0.00
0.00
0.00
0.01
0.00
0.09
0.00
0.00
0.06
0.00
(0.00)
0.12
0.01
0.00
0.00
(0.00)
0.00
0.09
(0.00)
0.01
(0.00)
0.00
0.00
0.00
0.00
-
0.01
0.05
-
-
0.01
141.30
21.43
1.86
301.38
0.76
0.07
0.29
8.91
268.71
0.27
0.11
0.02
21.92
3.14
250.42
0.85
0.02
175.38
10.94
(0.11)
340.00
23.26
0.39
0.01
(0.09)
12.04
253.18
(1.45)
35.40
(0.00)
12.31
1.51
10.86
7.27
-
41.70
140.17
-
-
-
(0.15)
(0.00)
(0.00)
0.07
(0.00)
(0.00)
(0.00)
0.00
(0.01)
0.00
0.00
(0.00)
0.00
0.00
0.15
(0.00)
(0.00)
0.01
(0.00)
0.00
0.00
(0.01)
(0.01)
(0.00)
(0.00)
(0.00)
0.00
(0.01)
0.00
(0.00)
(0.00)
0.00
(0.01)
(0.08)
0.00
0.01
0.02
(0.00)
-
-
(54.69)
(0.22)
(0.46)
26.96
(1.41)
(0.91)
(0.01)
1.17
(3.12)
0.01
0.01
(0.00)
0.87
0.69
52.69
(0.00)
(0.00)
4.42
(1.50)
0.02
0.06
(3.04)
(4.32)
(0.02)
(0.12)
(0.08)
0.13
(4.98)
1.11
(0.00)
(0.05)
1.06
(2.90)
(29.39)
0.24
2.09
8.14
(0.31)
-
-
0.02
(0.00)
-
(0.02)
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
(0.20)
-
-
-
(0.00)
-
-
-
-
-
-
-
-
(0.00)
-
(0.00)
-
0.01
-
(0.00)
-
-
-
(0.35)
0.01
-
0.27
0.00
-
-
-
-
-
-
-
-
-
-
-
-
3.29
-
-
-
0.01
-
-
-
-
-
-
-
-
0.00
-
0.01
-
(0.09)
-
0.05
-
-
-
(0.16)
(0.00)
(0.00)
0.08
(0.00)
(0.00)
(0.00)
0.00
(0.01)
0.00
0.00
(0.00)
0.00
0.00
0.15
(0.00)
(0.00)
0.02
(0.00)
0.00
0.00
(0.01)
(0.01)
(0.00)
(0.00)
(0.00)
0.00
(0.01)
0.00
(0.00)
(0.00)
0.00
(0.01)
(0.09)
0.00
0.01
0.02
(0.00)
-
-
(55.04)
(0.21)
(0.46)
27.23
(1.41)
(0.91)
(0.01)
1.17
(3.12)
0.01
0.01
(0.00)
0.87
0.69
52.69
(0.00)
(0.00)
7.71
(1.50)
0.02
0.06
(3.03)
(4.32)
(0.02)
(0.12)
(0.08)
0.13
(4.98)
1.11
(0.00)
(0.05)
1.06
(2.89)
(29.39)
0.15
2.09
8.19
(0.31)
Name of the Enterprise
24 X 7 Learning Private Limited
Aeon Learning Private Limited
Big Tree Entertainment Private Limited
Clafyin Technologies Private Limited
Dyulok Technologies Private Limited
Eenadu Television Private Limited
Fantain Sports Private Limited
Foodfesta Wellcare Private Limited
Gaurav Overseas Private Limited
Genesis La Mode Private Limited
Genesis Luxury Fashion Private Limited
GenNext Ventures Investment Advisers LLP
GLB Body Care Private Limited
GLB Perfumes and Beauty Private Limited
GLF Lifestyle Brands Private Limited
GML India Fashion Private Limited
Gujarat Chemical Port Terminal Company Limited
Indian Vaccines Corporation Limited
M Entertainments Private Limited
Reliance Industrial Infrastructure Limited
Shop CJ Network Private Limited
SpaceBound Web Labs Private Limited
The Indian Film Combine Private Limited
TV18 Home Shopping Network Limited
Vay Network Services Private Limited
Associates (Investment accounted 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
20
21
22
23
24
25
Foreign
1
2
3
4
5
6
7
Big Tree Entertainment DMCC
Big Tree Entertainment Lanka Private Limited
Big Tree Entertainment Singapore Pte Limited
NW18 HSN Holdings PLC
PT Big Tree Entertainment Indonesia
Reliance Europe Limited
Townscript USA, Inc.
Joint Ventures (Investment accounted as per the Equity Method)
Indian
1
2
3
4
5
6
7
8
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
IndiaCast Media Distribution Private Limited
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018 Integrated Annual Report 2017–18Consolidated Financial Statements Corporate Overview
Management Review
Governance
Financial Statements
274-425
Notice
420
Reliance Industries Limited • Making Life Better. For Everyone.
Name of the Enterprise
9
10
11
12
13
14
15
16
17
18
19
20
Foreign
1
2
3
4
5
India Gas Solutions Private Limited
Jio Payments Bank Limited
Marks and Spencer Reliance India Private Limited
Reliance Bally 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
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)
0.00
0.03
0.06
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-
0.00
-
-
-
-
-
5.40
83.04
179.10
3.34
4.82
6.22
12.81
10.18
2.63
6.56
-
1.47
-
-
-
-
-
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Amount
(` in crore)
As % of
consolidated
Profit or
Loss
0.00
(0.00)
0.09
(0.00)
(0.00)
(0.00)
(0.02)
(0.00)
(0.00)
0.00
0.11
0.00
0.00
0.00
(0.00)
(0.00)
(0.00)
0.42
(0.99)
30.71
(0.19)
(0.57)
(0.61)
(6.79)
(1.01)
(0.04)
0.39
38.04
0.45
1.36
0.47
(1.08)
(0.04)
(0.04)
As % of
consolidated
Other
Comprehensive
Income
-
0.00
(0.09)
-
(0.00)
-
(0.01)
(0.00)
-
0.00
0.02
-
-
-
-
-
-
Amount
(` in crore)
-
(0.01)
1.54
-
0.00
-
0.13
0.00
-
(0.06)
(0.29)
-
-
-
-
-
-
As % of
consolidated
Total
Comprehensive
Income
0.00
(0.00)
0.09
(0.00)
(0.00)
(0.00)
(0.02)
(0.00)
(0.00)
0.00
0.11
0.00
0.00
0.00
(0.00)
(0.00)
(0.00)
Amount
(` in crore)
0.42
(1.00)
32.25
(0.19)
(0.57)
(0.61)
(6.66)
(1.01)
(0.04)
0.33
37.75
0.45
1.36
0.47
(1.08)
(0.04)
(0.04)
36.1 On 28th February, 2018, TV18 Broadcast Limited, a subsidiary of the Company increased its equity interest in Viacom18 Media
Private Limited from 50% to 51% by acquiring in cash 1% of the equity shares held by MTV Asia Ventures (India) Pte Ltd., Mauritius
for ` 130 crore and consequently obtained operational control over Viacom18 Media Private Limited. Accordingly, TV18 Broadcast
Limited has consolidated Viacom18 Media Private Limited as subsidiary from 1st March, 2018. Consequent to this acquisition,
IndiaCast Media Distribution Private Limited, which was hitherto a Joint Venture, was accounted as subsidiary with effect from
1st March, 2018.
The gain on re-measurement of previously held equity interest amounting to ` 4,942 crore which has been credited to Statement
of Profit or Loss in accordance with Ind AS 103 - Business Combinations has been adjusted against Goodwill so created and netted
off in Exceptional Items, since the Group considers equity interest in Viacom18 Media Private Limited as long term strategic
business of the Group with no intention to liquidate in the near future. Accordingly Goodwill of ` 1,041 crore has been recorded.
37. EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have recommended dividend of ` 6.00 per fully paid up equity share of ` 10/- each, aggregating ` 4,281
crore, including ` 728 crore dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on
31st March, 2018. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date /
book closure.
38.
The figures for the corresponding previous year have been regrouped / reclassified wherever necessary, to make them comparable.
39. APPROVAL OF FINANCIAL STATEMENTS
The Consolidated Financial Statements were approved for issue by the Board of Directors on April 27, 2018.
Notes to the Consolidated Financial Statementsfor the year ended 31st March, 2018
Integrated Annual Report 2017–18
Consolidated Financial Statements
421
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.
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*
The date
since which
Subsidiary
was
acquired
26.03.2012
1
2
3
4
5
6
7
8
9
Affinity Names Inc.#
Aurora Algae Inc.#
21.04.2015
Aurora Algae Pty Limited#^
21.04.2015
Dreketi S.A.#^^
21.08.2017
Ethane Crystal LLC
10.09.2014
Ethane Emerald LLC
10.09.2014
Ethane Opal LLC
10.09.2014
Ethane Pearl LLC
10.09.2014
Ethane Sapphire LLC
10.09.2014
10
Ethane Topaz LLC
10.09.2014
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Indiawin Sports Private Limited
07.04.2010
Jio Information Solutions Limited**
23.03.2015
Jio Payments Bank Limited
Kanhatech Solutions Limited
Model Economic Township Limited
Naroda Power Private Limited
10.11.2016
01.08.2008
09.10.2006
Recron (Malaysia) Sdn. Bhd.#
20.07.2007
Reliance Ambit Trade Private Limited
31.03.2009
Reliance Aromatics and Petrochemicals
Limited
Reliance Brands Limited
Reliance Chemicals Limited
30.12.2009
12.10.2007
30.12.2009
Reliance Clothing India Private Limited
26.09.2013
Reliance Commercial Dealers Limited
10.01.2017
Reliance Comtrade Private Limited
31.03.2009
Reliance Content Distribution Limited
05.09.2017
Reliance Corporate IT Park Limited
Reliance Digital Media Distribution
Limited
30.03.2009
05.09.2017
Revenue
from
Operations
/
Total
Income
-
-
2.62
0.41
244.80
49.01
-
-
73.78
11.32
73.78
11.32
73.78
11.32
73.78
11.32
67.91
10.42
64.07
9.83
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
190.78
195.81
0.00
-
70.68
-
-
-
-
-
2,780.06
563.20
2,604.91
-
7.38
-
-
-
7.16
23.74
174.83
-
5,285.40
3,348.90
4.41
0.02
317.88
0.02
40.07
511.05
-
-
(0.08)
(0.01)
(374.31)
(58.60)
244.36
48.92
(0.02)
(0.00)
16.75
2.57
16.75
2.57
16.29
2.50
16.88
2.59
14.73
2.26
14.47
2.22
(2.17)
(0.01)
(1.42)
0.41
(8.62)
(0.00)
15.04
9.53
0.11
(0.09)
(8.17)
(0.24)
(6.52)
0.64
(0.01)
(0.02)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1.34)
-
2.52
1.60
-
-
(3.32)
-
-
(3.08)
-
-
(0.08)
(0.01)
(374.31)
(58.60)
244.36
48.92
(0.02)
(0.00)
16.75
2.57
16.75
2.57
16.29
2.50
16.88
2.59
14.73
2.26
14.47
2.22
(2.17)
(0.01)
(1.42)
0.41
(7.28)
(0.00)
12.52
7.93
0.11
(0.09)
(4.85)
(0.24)
(6.52)
3.72
(0.01)
(0.02)
0.06
0.01
444.95
69.66
30.87
6.18
0.00
0.00
178.97
27.46
168.67
25.88
168.41
25.84
179.69
27.57
168.41
25.84
168.41
25.84
2.65
0.05
132.00
75.00
97.00
0.01
856.97
542.99
1.00
1.01
101.08
1.01
0.05
15.00
1.00
0.05
(0.06)
(0.01)
(431.28)
(67.52)
(30.87)
(6.18)
(0.03)
(0.00)
31.22
4.79
29.59
4.54
25.94
3.98
27.44
4.21
23.85
3.66
25.74
3.95
202.12
(0.04)
(13.39)
(4.16)
0.00
0.00
13.92
2.18
0.00
0.00
0.00
0.00
770.82
118.27
760.98
116.76
771.15
118.32
784.06
120.30
768.48
117.91
769.07
118.00
315.73
0.02
123.77
70.99
0.00
0.00
0.26
0.04
-
-
0.03
0.00
560.64
86.02
562.72
86.34
576.80
88.50
576.93
88.52
576.21
88.41
574.91
88.21
110.96
0.01
5.16
0.15
4,134.64
6,745.29
2,513.65
(0.10)
131.67
83.43
777.41
-
2,673.18
1,693.76
790.88
2,779.05
2,780.07
444.39
2,603.93
(19.87)
211.53
117.04
(0.02)
1,015.87
2,604.98
45.50
517.11
118.06
0.05
0.09
1,684.53
1,067.34
12.47
0.01
470.40
0.04
65.32
290.58
0.02
0.02
INR
USD
INR
USD
INR
AUD
INR
USD
INR
USD
INR
USD
INR
USD
INR
USD
INR
USD
INR
USD
INR
INR
INR
INR
INR
INR
INR
RM
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
2,379.99
7,612.08
25,288.53
15,296.46
18.95
4,315.48
0.01
(0.02)
0.01
0.02
-
-
592.42
(0.02)
93.68
498.74
-
(0.02)
As on 31.12.2017:1US$ = 63.8750, 1GBP = 86.2825, 1AUD = 49.9500, 1RM = 15.7825
As on 31.03.2018:1US$ = 65.1750, 1GBP = 92.2775, 1AUD = 50.0450 , 1RM = 16.8675
* Representing aggregate % of the shares held by the company and / or its subsidiaries
# Company having 31st December as reporting date
^ Ceased to be Subsidiary as on 31st March, 2018
^^ Financial Information is based on Unaudited Results
** Formerly known as Reliance Textiles Limited
-
-
-
-
-
-
-
-
5.34
0.82
5.47
0.84
5.41
0.83
9.91
1.52
6.71
1.03
11.34
1.74
0.01
-
(0.02)
-
0.03
-
(87.23)
(55.27)
-
-
0.64
-
0.02
0.25
-
-
7.84
-
(0.08)
(0.01)
(374.31)
(58.60)
244.36
48.92
(0.02)
(0.00)
22.09
3.39
22.22
3.41
21.70
3.33
26.79
4.11
21.44
3.29
25.81
3.96
(2.16)
(0.01)
(1.44)
0.41
(7.25)
(0.00)
(74.71)
(47.34)
0.11
(0.09)
(4.21)
(0.24)
(6.50)
3.97
(0.01)
(0.02)
506.58
(0.02)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
70.00
100.00
100.00
100.00
100.00
100.00
100.00
80.00
100.00
100.00
99.99
100.00
100.00
100.00
100.00
Corporate Overview
Management Review
Governance
Financial Statements
274-425
Notice
422
Reliance Industries Limited • Making Life Better. For Everyone.
Annexure “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES / ASSOCIATES / JOINT VENTURES
AS PER COMPANIES ACT, 2013
Name of Subsidiary Company
Sr.
No.
The date
since which
Subsidiary
was
acquired
Reporting
Currency
Equity
Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue
from
Operations
/
Total
Income
(` 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*
28
Reliance Eagleford Midstream LLC#^
16.06.2010
29
Reliance Eagleford Upstream GP LLC#
17.06.2010
INR
USD
INR
USD
298.94
46.80
0.26
0.04
5,293.70
5,592.64
828.76
(0.19)
(0.03)
875.56
0.06
0.01
-
-
-
-
30
Reliance Eagleford Upstream
Holding LP#
17.06.2010
INR
11,039.84
(13,639.80)
7,624.06
10,224.02
31
Reliance Eagleford Upstream LLC#
16.06.2010
INR
11,040.35
(11,040.28)
USD
1,728.35
(2,135.39)
1,728.43
(1,728.42)
10.00
3,826.25
1,193.59
9,081.75
1,421.80
4,253.68
1,600.63
9,081.68
1,421.79
417.43
1.01
1,110.58
1,111.78
1.25
10,869.96
10,871.34
1,033.02
158.50
(0.78)
(0.12)
1,032.57
158.43
2,892.83
(1,352.74)
1,552.16
(211.78)
(0.11)
369.15
40.08
6.15
7.20
0.78
243.00
116.01
3,600.88
3,333.11
511.41
20.39
2.21
452.89
100.00
373.00
7.69
1.18
4.61
0.50
0.32
0.05
0.19
0.13
0.33
0.05
12.07
1.89
16.12
2,858.73
3,285.34
504.08
8.58
0.93
-
-
-
-
-
-
-
-
-
1,111.48
10,871.20
1,032.57
158.43
-
-
18.48
-
-
-
-
(4.98)
(0.78)
(0.00)
(0.00)
1,448.81
(1,799.61)
226.82
(281.74)
969.11
(9,581.31)
151.72
(1,500.01)
16.54
0.13
0.02
0.02
0.20
0.03
(0.09)
(0.54)
(0.13)
(0.02)
1,058.79
1,043.85
165.76
10.76
163.42
(0.11)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
207.93
640.58
-
-
-
-
30,209.92
4,635.20
30.73
3.33
2.48
33.96
5.21
2.31
0.25
(0.60)
3.06
0.47
0.46
0.05
(4.98)
(0.78)
(0.00)
(0.00)
(1,799.61)
(281.74)
(9,581.31)
(1,500.01)
0.13
(0.09)
(0.54)
(0.13)
(0.02)
1,043.85
163.42
(0.11)
3.08
30.90
4.74
1.85
0.20
(13,361.05)
(2,091.75)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.03
-
-
-
-
-
-
3.38
473.24
111.53
17.46
3.44
(0.98)
7.03
1.10
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(16,319.49)
20,621.53
36,940.70
(2,554.91)
3,228.42
5,783.28
416.66
65.23
2,008.23 (13,361.05)
314.40
(2,091.75)
147.50
18,924.81
31,779.86
12,707.55
16,870.77
1,276.97
3.38
1,136.02
(167.10)
3,730.56
2,761.64
2,298.29
6,201.69
111.53
177.85
64.69
10.00
-
-
(26.16)
(43.28)
(2.66)
38.13
5.97
584.04
29.88
7.61
39.54
6.19
432.35
359.81
8.47
0.27
1.41
0.22
-
7.29
-
-
970.91
7.44
0.19
58.57
9.17
17.46
3.44
(0.98)
7.03
1.10
45,000.00
57,932.76
2,53,730.64
1,50,797.88
1,015.70
20,154.48
1,109.13
386.17
722.96
5.41
664.30
104.00
47.46
5.50
246.24
38.55
1.00
86.01
(13.92)
(2.18)
0.69
0.08
(11.37)
(1.78)
(0.55)
(1.36)
851.96
133.38
60.31
6.99
243.49
38.12
0.49
89.08
201.59
31.56
12.17
1.41
8.62
1.35
0.04
4.43
-
-
-
-
108.27
16.95
-
27.68
273.77
42.86
36.76
4.26
82.65
12.94
15.97
2.47
6.71
1.05
1.55
0.18
6.52
1.02
(0.34)
(0.58)
-
-
0.17
0.02
(0.32)
(0.05)
-
-
6.71
1.05
1.38
0.16
6.84
1.07
(0.34)
(0.58)
-
-
-
-
-
-
-
-
(4.98)
(0.78)
(0.00)
(0.00)
(1,799.61)
(281.74)
(9,581.31)
(1,500.01)
0.13
(0.09)
(0.54)
(0.13)
(0.02)
1,043.85
163.42
(0.11)
3.11
30.89
4.74
1.85
0.20
(13,361.05)
(2,091.75)
476.62
111.53
17.46
3.44
(0.98)
7.03
1.10
728.37
6.71
1.05
1.38
0.16
6.83
1.07
(0.34)
(0.58)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
51.00
100.00
100.00
100.00
-
100.00
100.00
100.00
100.00
100.00
100.00
99.57
100.00
100.00
100.00
100.00
100.00
32
33
34
35
36
37
38
39
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 Lifestyle India Private
Limited**
Reliance Gas Pipelines Limited
Reliance Global Energy Services
(Singapore) Pte Ltd.
31.03.2009
30.12.2009
22.07.2010
04.09.2014
06.12.2006
09.08.2017
26.11.2012
18.08.2008
40
Reliance Global Energy Services Limited
20.06.2008
41
Reliance Holding USA, Inc.#
29.03.2010
42
43
44
45
46
47
48
Reliance Industrial Investments and
Holdings Limited
Reliance Industries (Middle East)
DMCC#
Reliance Innovative Building Solutions
Private Limited
Reliance Jio Digital Services Limited
Reliance Jio Global Resources LLC#
Reliance Jio Infocomm Limited
Reliance Jio Infocomm Pte Limited#
30.12.1988
11.05.2005
30.03.2015
22.09.2014
15.01.2015
17.06.2010
01.02.2013
49
Reliance Jio Infocomm UK Limited#
30.07.2013
50
Reliance Jio Infocomm USA, Inc.#
05.06.2013
51
52
Reliance Jio Infratel Private Limited
Reliance Jio Media Limited
17.02.2016
02.01.2015
USD
INR
INR
INR
INR
USD
INR
USD
INR
INR
INR
USD
INR
GBP
INR
USD
INR
INR
USD
INR
INR
INR
USD
INR
INR
USD
INR
GBP
INR
USD
INR
INR
As on 31.12.2017:1US$ = 63.8750, 1GBP = 86.2825, 1AUD = 49.9500, 1RM = 15.7825
As on 31.03.2018:1US$ = 65.1750, 1GBP = 92.2775, 1AUD = 50.0450 , 1RM = 16.8675
* Representing aggregate % of the shares held by the company and / or its subsidiaries
# Company having 31st December as reporting date
^ Ceased to be Subsidiary as on 31st March, 2018
** Formerly known as Reliance Brands Luxury Private Limited
Integrated Annual Report 2017–18
Consolidated Financial Statements
423
Annexure “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES / ASSOCIATES / JOINT VENTURES
AS PER COMPANIES ACT, 2013
Reporting
Currency
Equity
Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue
from
Operations
/
Total
Income
(` 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*
94.14
0.13
0.50
0.00
(1.15)
Sr.
No.
53
54
55
56
Name of Subsidiary Company
Reliance Jio Messaging Services
Limited
Reliance Lifestyle Holdings Limited
Reliance LNG Limited
Reliance Marcellus II LLC#
The date
since which
Subsidiary
was
acquired
12.09.2013
31.03.2012
10.01.2017
28.06.2010
57
Reliance Marcellus LLC#
29.03.2010
INR
12,220.88
(14,881.47)
8,475.57
11,136.16
USD
1,913.25
(2,329.78)
1,326.90
1,743.43
INR
INR
INR
INR
97.33
0.05
0.05
(3.32)
69.21
(0.05)
3,357.33
(3,382.25)
USD
525.61
(529.51)
202.13
132.87
-
1.21
0.19
-
26.12
4.09
115.00
0.05
1.01
10.00
805.12
123.40
2,500.72
2,527.55
976.30
798.03
2,614.66
3,001.53
56.18
674.58
112.93
463.98
1.00
631.52
640.71
8.19
10.00
2,806.95
2,896.83
79.88
202.07
10,040.58
-
-
-
-
-
-
29.47
2,502.13
0.00
-
-
306.28
-
4.04
(0.04)
202.16
1,147.26
31.65
805.53
126.11
21.22
163.09
37.08
6.19
19.01
0.16
12.19
179.61
(500.40)
(78.34)
(4.88)
95.92
2.19
0.14
0.93
0.02
0.04
1.92
-
-
-
-
-
-
-
-
26.09
0.79
-
0.03
0.01
0.00
0.55
(1.15)
4.04
(0.04)
1,147.26
179.61
(500.40)
(78.34)
(4.88)
69.83
1.40
0.14
0.90
0.01
0.04
1.37
2.02
4.00
4,989.54
6,000.00
1,544.53
0.05
2.02
6.43
10.00
0.56
2.69
0.01
0.05
0.05
0.52
0.08
19.16
3.00
566.02
358.64
0.01
0.05
0.01
99.95
10.12
102.11
15.48
0.14
1.36
101.00
9.02
4,076.92
24,084.41
15,017.95
534.41
51,456.17
1,874.68
631.54
1,243.14
997.26
6.58
6,998.15
2,595.39
0.89
1,044.28
6,991.04
153.84
14.87
-
0.61
(0.26)
(10.98)
226.78
237.71
-
1,513.15
1.11
0.12
3.45
0.96
0.49
(3.71)
0.15
2,106.65
3,867.36
1,758.69
3,711.50
296.26
210.19
(31.50)
241.69
3,410.20
3,416.67
254.68
442.57
0.04
177.89
3.76
1,146.58
0.06
-
-
-
-
160.46
4,844.24
6,133.69
0.02
-
0.52
0.08
1,854.10
1,347.06
290.27
835.75
529.54
-
21.53
-
210.89
2,001.27
1,268.03
-
22.08
-
156.14
3,694.97
6,133.62
(0.03)
(0.05)
(0.00)
(0.00)
487.88
76.38
(1,731.55)
(1,097.13)
(0.01)
(0.60)
(0.01)
3,416.56
-
-
4,389.55
6,133.50
-
-
-
-
-
-
-
-
-
3.46
-
0.02
2.96
3.02
(0.34)
0.80
0.02
405.29
340.05
0.02
-
-
0.00
0.00
12,563.57
1,966.90
(0.71)
(0.00)
(0.04)
(0.00)
(0.00)
139.44
21.83
427.42
270.82
(100.00)
(63.36)
0.00
0.22
0.00
(0.01)
0.02
(0.01)
-
(1.02)
(7.67)
18.40
-
-
-
-
-
5.68
0.89
0.09
0.06
-
0.06
(0.34)
1.82
7.69
321.65
(0.71)
(0.00)
(0.04)
(0.00)
(0.00)
133.76
20.94
(100.09)
(63.42)
(0.01)
(0.04)
-
(0.01)
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
Reliance Payment Solutions Limited
07.09.2007
Reliance Petro Marketing 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
31.03.2009
30.12.2009
31.03.2009
31.03.2009
31.03.2009
20.02.2007
20.11.2006
20.11.2006
24.04.2007
21.02.2012
27.11.2007
Reliance Strategic Investments Limited
28.12.2001
Reliance Universal Enterprises Limited
27.09.2008
Reliance Universal Traders Private
Limited
Reliance Vantage Retail Limited
Reliance Ventures Limited
31.03.2009
27.12.2007
07.10.1999
Reliance World Trade Private Limited
12.09.2013
Reliance-GrandOptical Private Limited
17.03.2008
Resolute Land Consortium Projects
Limited
RIL Exploration and Production
(Myanmar) Company Limited
79
RIL USA, Inc.#
19.07.2017
11.09.2015
26.02.2009
80
RP Chemicals (Malaysia) Sdn. Bhd. #
11.02.2016
81
82
83
Santol Commercials Private Limited
19.07.2017
Surela Investment and Trading Private
Limited
Tangerine Agro Private Limited
07.05.2012
19.07.2017
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
USD
INR
USD
INR
RM
INR
INR
INR
As on 31.12.2017:1US$ = 63.8750, 1GBP = 86.2825, 1AUD = 49.9500, 1RM = 15.7825
As on 31.03.2018:1US$ = 65.1750, 1GBP = 92.2775, 1AUD = 50.0450 , 1RM = 16.8675
* Representing aggregate % of the shares held by the company and / or its subsidiaries
# Company having 31st December as reporting date
The above statement also indicates performance and financial position of each of the subsidiaries.
-
(0.20)
-
-
-
-
-
0.01
8.59
31.32
-
-
-
-
0.03
3.75
-
-
3.63
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1.15)
3.84
(0.04)
1,147.26
179.61
(500.40)
(78.34)
(4.87)
78.42
32.72
0.14
0.90
0.01
0.04
1.40
1,246.89
0.49
(3.71)
3.78
241.69
(0.34)
1.82
7.69
321.65
(0.71)
(0.00)
(0.04)
(0.00)
(0.00)
133.75
20.94
(100.09)
(63.42)
(0.01)
(0.04)
(0.01)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
90.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.95
94.63
74.90
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
Corporate Overview
Management Review
Governance
Financial Statements
274-425
Notice
424
Reliance Industries Limited • Making Life Better. For Everyone.
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 Companies
Dreketi S.A.
Names of Subsidiaries which have been liquidated/sold during the year -
Name of the Companies
Sr.
No.
1
Aanant Commercial Private Limited*
2
Aurora Algae RGV LLC
3
Central Park Enterprises DMCC
4
Cluster Commercials Private Limited*
5
Delta Corp East Africa Limited
6
Devashree Commercials Private Limited*
7
Dignity Mercantile Private Limited*
8
Gapco Kenya Limited
9
Gapco Tanzania Limited
10
Gapco Uganda Limited
11
Gapoil (Zanzibar) Limited
12
Girisha Commercials Private Limited*
13
Gulf Africa Petroleum Corporation
14
Jalaja Commercials Private Limited*
15
Reliance Aerospace Technologies Limited*
16
Reliance Commercial Land & Infrastructure Limited*
17
Reliance Commercial Trading Private Limited*
18
Reliance Global Business B.V.
19
Reliance Global Commercial Limited*
20
Reliance Jio AsiaInfo Innovation Centre Limited*
21
Reliance Petroinvestments Limited*
22
Reliance Trading Limited*
23
Reliance Universal Commercial Limited*
24
Reliance Supply Solutions Private Limited*
RIL (Australia) Pty Limited
25
26 Wave Land Developers Limited
* Companies amalgamated during the year pursuant to the Scheme of Amalgamation.
Integrated Annual Report 2017–18
Consolidated Financial Statements
425
Annexure “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES / ASSOCIATES / JOINT VENTURES
AS PER COMPANIES ACT, 2013
Part “B” : Associates and Joint ventures
Statement pursuant to Section 129 (3) of the Companies Act , 2013 related to Associates and Joint Ventures
Sr. No. Name of Associates/Joint Ventures
Latest
audited
Balance
Sheet Date
The date on
Shares of Associate/Joint Ventures held by the
Net-worth
Profit/Loss for the year
which the
Associate
or Joint
Venture was
associated or
acquired
Company on the year end
No.
Amount of
Extent of
Investment in
Holding %
Associates/
Joint Venture
(` in crore)
attributable to
Shareholding
as per latest
audited
Balance Sheet
(` in crore)
Considered in
Not
Consolidation
Considered in
(` in crore)
Consolidation
Description
of how there
Reason
why the
is Significant
Associate/
Influence
Joint
Venture
is not
consolidated
Associates
1
2
3
4
5
Gujarat Chemical Port Terminal Company Limited
31.03.2017
01.04.2006
64,29,20,000
Indian Vaccines Corporation Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Balaji Telefilms Limited
31.03.2017
27.03.1989
31.12.2017
10.06.1993
31.03.2018
19.05.1994
62,63,125
11,08,500
68,60,064
31.03.2017
22.08.2017
2,52,00,000
64.29
0.61
3.93
16.30
328.36
41.80%
33.33%
50.00%
45.43%
24.92%
202.88
3.58
50.83
146.95
163.01
52.69
0.07
1.13
4.43
-
-
-
-
-
-
Note - A
Note - A
Note - A
Note - A
-
-
-
-
-
Note - B
Note:
A. There is significant influence due to percentage(%) of voting power.
B. Accounted as per the requirement of Ind AS 109 - Financial Instruments.
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 D T S & Associates
Chartered Accountants
(Registration No.142412W)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
K. Sethuraman
Company Secretary
Mumbai
Date : April 27, 2018
- Chairman & Managing Director
Executive Directors
Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
M.L. Bhakta
Y.P. Trivedi
Prof. Ashok Misra
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Shumeet Banerji
426
NOTICE
NOTICE is hereby given that the Forty-first Annual General
Meeting (Post - IPO) of the members of Reliance Industries
Limited will be held on Thursday, July 5, 2018 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:
Ordinary Business
1.
To consider and adopt (a) the audited financial statement
of the Company for the financial year ended March 31,
2018 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, 2018 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, 2018 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, 2018 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, 2018 and in this regard, pass the
following resolution as an Ordinary Resolution:
“RESOLVED THAT a dividend at the rate of ₹ 6/- (Six
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, 2018 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, 2018.”
3.
To appoint Shri P. M. S. Prasad, who retires by rotation
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, Shri P. M. S. Prasad
(DIN: 00012144), who retires by rotation at this meeting
be and is hereby appointed as a Director of the Company,
liable to retire by rotation.”
4.
To appoint Shri Nikhil R. Meswani, who retires by rotation
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, Shri Nikhil R. Meswani
(DIN: 00001620), who retires by rotation at this meeting
be and is hereby appointed as a Director of the Company,
liable to retire by rotation.”
Special Business
5.
To re-appoint Shri Mukesh D. Ambani as Managing
Director and in this regard, to pass, the following
resolution as an Ordinary Resolution:
“RESOLVED THAT in accordance with the provisions
of Sections 196, 197 and 203 read with Schedule V and
other applicable provisions, if any, of the Companies
Act, 2013 and the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014
(including any statutory modification(s) or re-enactment
thereof for the time being in force), approval of the
members be and is hereby accorded to re-appoint
Shri Mukesh D. Ambani (DIN: 00001695) as Managing
Director of the Company, for a period of 5 (five) years, on
expiry of his present term of office, i.e. with effect from
April 19, 2019, on the terms and conditions including
remuneration as set out in the Statement annexed
to the Notice convening this Meeting, with liberty to
the Board of Directors (hereinafter referred to as “the
Board” which term shall be deemed to include Human
Resources, Nomination and Remuneration Committee
of the Board) to alter and vary the terms and conditions
of the said re-appointment and / or remuneration as it
may deem fit and as may be acceptable to Shri Mukesh
D. Ambani, subject to the same not exceeding the limits
specified under Schedule V to the Companies Act, 2013
or any statutory modification or re-enactment thereof;
RESOLVED FURTHER THAT the Board be and is hereby
authorised to do all acts and take all such steps as may
be necessary, proper or expedient to give effect to this
resolution.”
6.
To re-appoint Shri Adil Zainulbhai 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
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements Notice 426-435
427
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 Adil Zainulbhai (DIN: 06646490), who was appointed
as an Independent Director and who holds office as an
Independent Director up to March 31, 2019 and being
eligible, 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, i.e. up to March 31, 2024.”
7.
To ratify the remuneration of Cost Auditors for the
financial year ending March 31, 2019 and in this regard,
pass the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of
Section 148 and other applicable provisions, if any, of
the Companies Act, 2013 read with the Companies
(Audit and Auditors) Rules, 2014 (including any statutory
modification(s) or re-enactment(s) thereof, for the time
being in force), the remuneration, as approved by the
Board of Directors and set out in the Statement annexed
to the Notice convening this Meeting, to be paid to the
Cost Auditors appointed by the Board of Directors of the
Company, to conduct the audit of cost records of the
Company for the financial year ending March 31, 2019, be
and is hereby ratified.”
8.
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
₹ 20,000 crore (Rupees Twenty thousand crore 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, utilisation 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, May 21, 2018
Registered Office:
3rd Floor, Maker Chambers IV, 222, Nariman Point,
Mumbai 400 021, India
CIN: L17110MH1973PLC019786
Website: www.ril.com
Tel.: +91 22 2278 5000
E-mail: investor.relations@ril.com
Fax: +91 22 2204 2268 / 2285 2214
Integrated Annual Report 2017–18Notice
428
Notes:
A Statement pursuant to Section 102(1) of the
Companies Act, 2013 (“the Act”), relating to the Special
Business to be transacted at the Annual General Meeting
(“Meeting”) is annexed hereto.
7.
1.
2.
3.
4.
5.
A member entitled to attend and vote at 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.
Attendance slip, proxy form and the route map of the
venue of the Meeting are annexed hereto.
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.
The Company is providing facility for voting by
electronic means (e-voting) through an electronic
voting system which will include remote e-voting 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 sent herewith. 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.
6.
In terms of the provisions of Section 152 of the Act,
Shri P.M.S. Prasad and Shri Nikhil R. Meswani, Directors,
retire by rotation at the Meeting. Human Resources,
Nomination and Remuneration Committee and the
Board of Directors of the Company commend their
respective re-appointments.
Shri P.M.S. Prasad and Shri Nikhil 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 Hital R. Meswani, Executive
Director, being related to Shri Nikhil 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 other 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 4 of the Notice.
8.
The requirement to place the matter relating to
appointment of Auditors for ratification by members at
every Annual General Meeting is done away with vide
notification dated May 7, 2018 issued by the Ministry of
Corporate Affairs, New Delhi. Accordingly, no resolution
is proposed for ratification of appointment of Auditors,
who were appointed in the Annual General Meeting held
on July 21, 2017.
9.
Details of Directors retiring by rotation / seeking
re-appointment at the ensuing Meeting are provided in
the “Annexure” to the Notice.
10. Members / Proxies / Authorised Representatives are
requested to bring to the Meeting necessary details
of their shareholding, attendance slip(s) and copies of
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.
11. Relevant documents referred to in the Notice are
open for inspection by the members at the Registered
Office of the Company on all working days (i.e. except
Saturdays, Sundays and Public Holidays) during business
hours up to the date of the Meeting. The aforesaid
documents will be also available for inspection by
members at the Meeting.
12. The dividend on equity shares, if declared at the Meeting,
will be credited / despatched within a week from the
conclusion of the Meeting to those members whose
names appear on the Company’s Register of Members
on the Record Date fixed for the purpose; 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.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements Notice 426-435
429
13. Members holding shares in electronic mode are
17.
requested to intimate any change in their address or
bank mandates to their Depository Participants (“DPs”)
with whom they are maintaining their demat accounts.
Members holding shares in physical mode are requested
to advise any change in their address or bank mandates
to the Company / Company’s Registrar and Transfer
Agents, i.e. Karvy Computershare Private Limited
(“Karvy”).
Due dates for transfer of unclaimed/unpaid dividends for
the financial year 2010-11 and thereafter to IEPF:
FY ended
March 31, 2011
March 31, 2012
March 31, 2013
March 31, 2014
March 31, 2015
March 31, 2016
March 31, 2017
Declaration Date Due Date
June 3, 2011
June 7, 2012
June 6, 2013
June 18, 2014
June 12, 2015
March 10, 2016
July 21, 2017
July 9, 2018
July 13, 2019
July 12, 2020
July 24, 2021
July 18, 2022
April 15, 2023
August 26, 2024
14. The Company has transferred the unpaid or unclaimed
dividends declared up to financial years 2009-10, 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 dividends lying with the Company as on
July 21, 2017 (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 IEPF Authority and the same can be accessed
through the link: www.iepf.gov.in.
15. (a)
Adhering to the various requirements set out
in the Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and
Refund) Rules, 2016, as amended, the Company
has, during financial year 2017-18, transferred to
the IEPF Authority all shares in respect of which
dividend had remained unpaid or unclaimed for
seven consecutive years or more as on the due date
of transfer, i.e. October 31, 2017. Details of shares
transferred to the IEPF Authority are available 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 IEPF Authority and the same can be
accessed through the link: www.iepf.gov.in.
(b)
Members may note that shares as well as
unclaimed dividends transferred to IEPF Authority
can be claimed back from them. Concerned
members/investors are advised to visit the
weblink: http://iepf.gov.in/IEPFA/refund.html
or contact Karvy for lodging claim for refund of
shares and / or dividend from the IEPF Authority.
18. Members holding shares in physical mode:
(a)
(b)
are required to submit their Permanent Account
Number (PAN) and bank account details to the
Company / Karvy, if not registered with the
Company as mandated by SEBI.
are advised to register the nomination in respect
of their shareholding in the Company. Nomination
Form (SH-13) is put on the Company’s website
and can be accessed at link http://www.ril.com/
DownloadFiles/IRForms/Nominations.pdf.
(c)
are requested to register / update their e-mail
address with the Company / Karvy for receiving all
communications from the Company electronically.
19. Members holding shares in electronic mode:
(a)
are requested to submit their PAN and bank account
details to their respective DPs with whom they are
maintaining their demat accounts.
(b)
are advised to contact their respective DPs for
registering the nomination.
(c)
are requested to register / update their e-mail
address with their respective DPs for receiving all
communications from the Company electronically.
20. Non-Resident Indian members are requested to inform
Karvy / respective DPs, immediately of:
(a)
Change in their residential status on return to India
for permanent settlement.
(b)
Particulars of their bank account maintained in India
with complete name, branch, account type, account
number and address of the bank with pin code
number, if not furnished earlier.
16. SEBI has decided that securities of listed companies
21. Shareholders’ Referencer giving guidance on securities
can be transferred only in dematerialised form from a
cut-off date, to be notified. In view of the above and to
avail various benefits of dematerialisation, members
are advised to dematerialise shares held by them in
physical form.
related matters is put on the Company’s website
and can be accessed at link http://www.ril.com/
DownloadFiles/IRForms/Shareholders-Referencer.pdf.
22. Members are requested to fill in and send the Feedback
Form provided in the Annual Report.
Integrated Annual Report 2017–18Notice
430
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:
(d)
Item No. 5
The Board of Directors of the Company (“Board”), at its
meeting held on April 27, 2018 has, subject to the approval
of members, re-appointed Shri Mukesh D. Ambani (DIN:
00001695) as Managing Director, for a period of 5 (five) years
from the expiry of his present term, i.e. with effect from April
19, 2019, on the terms and conditions including remuneration
as recommended by the Human Resources, Nomination and
Remuneration Committee (“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 Mukesh
D. Ambani as Managing 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 Mukesh D. Ambani are
as under:
(a) Salary, Perquisites and Allowances per annum:
Particulars
Salary
Perquisites and Allowances
(` in crore)
4.17
0.59
(f)
The perquisites and allowances shall be evaluated,
wherever applicable, as per the provisions of
Income-tax Act, 1961 or any rules thereunder or any
statutory modification(s) or re-enactment thereof;
in the absence of any such rules, perquisites and
allowances shall be evaluated at actual cost. The
Managing Director is entitled to medical reimbursement
as per the policy of the Company for senior managerial
executives.
(b)
The Company’s contribution to provident fund,
superannuation or annuity fund, to the extent these
singly or together are not taxable under the Income
Tax law, gratuity payable and encashment of leave, as
per the rules of the Company and to the extent not
taxable under the Income Tax law, shall not be included
for the purpose of computation of the overall ceiling of
remuneration.
(c) Remuneration based on net profits:
In addition to the salary, perquisites and allowances as
set out above, Shri Mukesh D. Ambani shall be entitled to
receive remuneration based on net profits which will be
determined by the Board and / or HRNR Committee of
the Board for each financial year.
Any increment in salary, perquisites, and allowances and
remuneration based on net profits payable to
Shri Mukesh D. Ambani, as may be determined by the
Board and / or the HRNR Committee of the Board, shall
be in addition to remuneration under (a) above.
(e) Reimbursement of Expenses:
Expenses incurred for travelling, boarding and lodging
including for 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 of the
Company) 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 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.
The expenses, as may be borne by the Company for
providing security to Shri Mukesh D. Ambani and his
family members shall not be considered as perquisites
and accordingly, not to be included for the purpose of
computation of the overall ceiling of remuneration.
(g) General:
(i)
The Managing 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 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.
(ii)
The Managing Director shall act in accordance with
the Articles of Association of the Company and shall
abide by the provisions contained in Section 166 of
the Act with regard to duties of directors.
(iii)
The Managing Director shall adhere to the
Company’s Code of Conduct.
(iv) The office of Managing Director may be terminated
by the Company or by him by giving the other 3
(three) months’ prior notice in writing.
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements Notice 426-435
431
Shri Mukesh D. Ambani satisfies all the conditions set out
in Part-I of Schedule V to the Act as also conditions set out
under Section 196(3) 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 Mukesh D. Ambani
under Section 190 of the Act.
Details of Shri Mukesh D. Ambani are provided in the
“Annexure” to the Notice.
Shri Mukesh D. Ambani is interested in the resolution set out
at Item No. 5 of the Notice. Smt Nita M. Ambani, being related
to Shri Mukesh D. Ambani may be deemed to be interested in
the said resolution.
The other relatives of Shri Mukesh D. Ambani may be deemed
to be interested in the said resolution 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 resolution.
The Board commends the Ordinary Resolution set out at
Item No. 5 of the Notice for approval by the members.
Item No. 6
Shri Adil Zainulbhai (DIN: 06646490) was appointed as an
Independent Director of the Company and he holds office
as an Independent Director of the Company up to March 31,
2019 (“first term”).
The HRNR Committee of the Board of Directors, on the basis
of the report of performance evaluation, has recommended
re-appointment of Shri Adil Zainulbhai as an Independent
Director for a second term of 5 (five) consecutive years on
the Board of the Company.
The Board, based on the performance evaluation and as per
the recommendation of the HRNR Committee, considers
that, given his background and experience and contributions
made by him during his tenure, the continued association
of Shri Adil Zainulbhai would be beneficial to the Company
and it is desirable to continue to avail his services as an
Independent Director. Accordingly, it is proposed to
re-appoint Shri Adil Zainulbhai as an Independent Director
of the Company, not liable to retire by rotation, for a second
term of 5 (five) consecutive years on the Board of the
Company.
Shri Adil Zainulbhai is not disqualified from being appointed
as a Director in terms of Section 164 of the Act and has given
his consent to act as a Director.
The Company has also received declaration from Shri Adil
Zainulbhai that he meets the criteria of independence
as prescribed both under Section 149(6) 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, Shri Adil Zainulbhai fulfils the
conditions for appointment as an Independent Director as
specified in the Act and the Listing Regulations.
Shri Adil Zainulbhai is independent of the management.
Details of Shri Adil Zainulbhai, are provided in the “Annexure”
to the Notice. He shall be paid remuneration by way of fee
for attending meetings of the Board or Committees thereof
or for any other purpose whatsoever as may be decided by
the Board, reimbursement of expenses for participating in
the Board and other meetings and profit related commission
within the limits stipulated under Section 197 of the Act.
Copy of draft letter of appointment of Shri Adil Zainulbhai
setting out the terms and conditions of appointment is
available for inspection by the members at the registered
office of the Company.
Shri Adil Zainulbhai is interested in the resolution set
out at Item No. 6 of the Notice with regard to his re-
appointment. Relatives of Shri Adil Zainulbhai may be
deemed to be interested in the resolution 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 resolution.
This statement may also be regarded as an appropriate
disclosure under the Act and the Listing Regulations.
The Board commends the Special Resolution set out at Item
No. 6 of the Notice for approval by the members.
Integrated Annual Report 2017–18Notice 432
Item No. 7
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, 2019 as per the following details:
Sr. No. Name of the Cost Auditor
1.
2.
3.
4.
5.
6.
7.
8.
9.
Diwanji & Co.
K. G. Goyal & Associates
V. J. Talati & Co.
Kiran J. Mehta & Co.
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 crore)
Audit fees
0.10
0.03
0.09
0.04
0.09
0.06
0.09
0.07
0.08
0.65
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, 2019 by passing an Ordinary
Resolution as set out at Item No. 7 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.
The Board commends the Ordinary Resolution set out at
Item No. 7 of the Notice for approval by the members.
Item No. 8
The members of the Company, at the Annual General
Meeting held on July 21, 2017, had passed a special resolution
authorising the Board of Directors of the Company to offer
or invite subscriptions for redeemable non-convertible
debentures, of an aggregate nominal value up to ₹ 25,000
crore, in one or more series / tranches, on private placement.
The said resolution is valid and effective for 1 (one) year from
July 21, 2017. The members may note that the Company has
made private placement of redeemable non-convertible
debentures aggregating to ` 20,000 crore 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 a 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. 8 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.
The Board commends the Special Resolution set out at
Item No. 8 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, May 21, 2018
Registered Office: 3rd Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai 400 021, India
CIN: L17110MH1973PLC019786
Website: www.ril.com
Tel.: +91 22 2278 5000
E-mail: investor.relations@ril.com
Fax: +91 22 2204 2268 / 2285 2214
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements Notice 426-435 Annexure to the Notice dated May 21, 2018
Details of Directors retiring by rotation / seeking re-appointment at the Meeting
433
Shri P. M. S. Prasad
Age
Qualifications
Experience (including expertise in specific
functional area) / Brief Resume
Terms and Conditions of Re-appointment
Remuneration last drawn (including sitting
fees, if any)
Remuneration proposed to be paid
Date of first appointment on the Board
Shareholding in the Company as on March 31,
2018
Relationship with other Directors / Key
Managerial Personnel
Number of meetings of the Board attended
during the financial year (2017-18)
Directorships of other Boards as on March 31,
2018
Membership / Chairmanship of Committees of
other Boards as on March 31, 2018
Shri Nikhil R. Meswani
Age
Qualifications
Experience (including expertise in specific
functional area) / Brief Resume
Terms and Conditions of Re-appointment
66 years
Bachelor Degrees in Science from Osmania University and in Engineering from Anna
University
Vast experience in petroleum and petrochemical industry. Please refer Company’s
website: www.ril.com for detailed profile.
In terms of Section 152(6) of the Act, Shri P.M.S. Prasad who was re-appointed as a
Whole-time Director at the Annual General Meeting held on June 18, 2014 is liable to
retire by rotation at the Meeting.
₹ 8.99 crore (for remuneration details including perquisite value of stock options
exercised, please refer to Attachment I of Annexure VII to the Board’s Report)
As per existing approved terms and conditions
August 21, 2009
6,00,000 equity shares of ` 10/- each
Not related to any Director / Key Managerial Personnel
6
• Network18 Media & Investments Limited
• TV18 Broadcast Limited
• Reliance Commercial Dealers Limited
• Viacom 18 Media Private Limited
Network18 Media & Investments Limited
• Audit Committee- Member
• Nomination and Remuneration Committee- Member
• Corporate Social Responsibility Committee – Member
• Stakeholders’ Relationship Committee – Member
TV18 Broadcast Limited
• Audit Committee- Member
• Nomination and Remuneration Committee- Member
• Corporate Social Responsibility Committee – Member
• Stakeholders’ Relationship Committee – Member
Reliance Commercial Dealers Limited
• Nomination and Remuneration Committee – Chairman
Viacom 18 Media Private Limited
• Corporate Social Responsibility Committee – Member
52 years
Chemical Engineer from UDCT (now known as Institute of Chemical Technology),
Mumbai
Vast experience in petrochemical industry and taxation matters. Please refer
Company’s website: www.ril.com for detailed profile.
In terms of Section 152(6) of the Act, Shri Nikhil R. Meswani who was re-appointed
as a Whole-time Director at the Annual General Meeting held on July 21, 2017 is
liable to retire by rotation at the Meeting.
₹ 19.99 crore (for remuneration details including perquisite value of stock options
exercised, please refer to Attachment I of Annexure VII to the Board’s Report)
As per existing approved terms and conditions
June 26, 1986
Remuneration last drawn (including sitting fees,
if any)
Remuneration proposed to be paid
Date of first appointment on the Board
Shareholding in the Company as on March 31, 2018 33,56,748 equity shares of ` 10/- each
Integrated Annual Report 2017–18Notice 434
Shri Nikhil R. Meswani
Relationship with other Directors / Key
Managerial Personnel
Number of meetings of the Board attended
during the financial year (2017-18)
Directorships of other Boards as on March 31,
2018
Membership / Chairmanship of Committees of
other Boards as on March 31, 2018
Brother of Shri Hital R. Meswani and not related to any other Director / Key
Managerial Personnel
6
• Reliance Commercial Dealers Limited
Reliance Commercial Dealers Limited
• Audit Committee- Chairman
• Nomination and Remuneration Committee- Member
Shri Mukesh D. Ambani
Age
Qualifications
Experience (including expertise in
specific functional area) / Brief Resume
Terms and Conditions of Re-
appointment
Remuneration last drawn (including
sitting fees, if any)
Remuneration proposed to be paid
Date of first appointment on the Board
Shareholding in the Company as on
March 31, 2018
Relationship with other Directors / Key
Managerial Personnel
Number of meetings of the Board
attended during the financial year
(2017-18)
Directorships of other Boards as on
March 31, 2018
Membership / Chairmanship of
Committees of other Boards as on
March 31, 2018
Shri Adil Zainulbhai
61 years
Chemical Engineer from the Institute of Chemical Technology, Mumbai and MBA from
Stanford University in the US
Vast experience in petroleum and petrochemical, telecom and retail industries. Please refer
Company’s website: www.ril.com for detailed profile.
As per the resolution at item no. 5 of the Notice convening this Meeting read with explanatory
statement thereto, Shri Mukesh D. Ambani is proposed to be re-appointed as Managing
Director
₹ 15.00 crore (for remuneration details, please refer to Attachment I of Annexure VII to the
Board’s Report)
As per the resolution at item no. 5 of the Notice convening this Meeting read with explanatory
statement thereto.
April 1, 1977
72,31,692 equity shares of ` 10/- each
Spouse of Smt. Nita M. Ambani and not related to any other Director / Key Managerial
Personnel
6
• KDA Enterprises Private Limited
• Reliance Retail Ventures Limited
• Reliance Jio Infocomm Limited
• Reliance Foundation Institution of Education And Research
• Reliance Foundation
-
Age
Qualifications
64 years
Graduated in Mechanical Engineering from the Indian Institute of Technology and MBA Degree
from Harvard Business School.
Vast experience in Management consulting. Please refer Company’s website: www.ril.com for
detailed profile.
As per the resolution at item no. 6 of the Notice convening this Meeting read with explanatory
statement thereto, Shri Adil Zainulbhai is proposed to be re-appointed as an Independent Director
₹ 1.79 crore (for remuneration details, please refer to Attachment J of Annexure VII to the
Board’s Report)
As per the resolution at item no. 6 of the Notice convening this Meeting read with explanatory
statement thereto.
Date of first appointment on the Board December 20, 2013
Experience (including expertise in
specific functional area) / Brief Resume
Terms and Conditions of Re-
appointment
Remuneration last drawn (including
sitting fees, if any)
Remuneration proposed to be paid
Reliance Industries Limited • Making Life Better. For Everyone.Corporate Overview Management Review Governance Financial Statements Notice 426-435 435
Shri Adil Zainulbhai
Shareholding in the Company as on
March 31, 2018
Relationship with other Directors / Key
Managerial Personnel
Number of meetings of the Board
attended during the financial year
(2017-18)
Directorships of other Boards as on
March 31, 2018
Membership / Chairmanship of
Committees of other Boards as on
March 31, 2018
Nil
Not related to any Director / Key Managerial Personnel
6
• Cipla Limited
• Network18 Media & Investments Limited
• TV18 Broadcast Limited
• Larsen And Toubro Limited
• Reliance Retail Ventures Limited
• Reliance Jio Infocomm Limited
• TV18 Home Shopping Network Limited
• Piramal Foundation
Cipla Limited
• Nomination and Remuneration Committee- Member
• Corporate Social Responsibility Committee – Member
Network18 Media & Investments Limited
• Audit Committee- Chairman
• Nomination and Remuneration Committee- Member
• Corporate Social Responsibility Committee – Chairman
• Stakeholders’ Relationship Committee – Chairman
TV18 Broadcast Limited
• Audit Committee- Chairman
• Nomination and Remuneration Committee- Member
• Corporate Social Responsibility Committee – Chairman
Larsen and Toubro Limited
• Nomination and Remuneration Committee- Member
Reliance Retail Ventures Limited
• Audit Committee- Chairman
• Nomination and Remuneration Committee- Member
• Corporate Social Responsibility Committee – Chairman
Reliance Jio Infocomm Limited
• Audit Committee- Chairman
• Nomination and Remuneration Committee- Member
• Corporate Social Responsibility Committee – Chairman
TV18 Home Shopping Network Limited
• Audit Committee- Member
• Nomination and Remuneration Committee- Member
• Sub Committee of Directors – Member
By Order of the Board of Directors
K. Sethuraman
Group Company Secretary and Chief Compliance Officer
Mumbai, May 21, 2018
Registered Office:
3rd Floor, Maker Chambers IV, 222, Nariman Point,
Mumbai 400 021, India
CIN: L17110MH1973PLC019786
Website: www.ril.com
Tel.: +91 22 2278 5000
E-mail: investor.relations@ril.com
Fax: +91 22 2204 2268 / 2285 2214
Integrated Annual Report 2017–18Notice ROUTE MAP
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Birla Matushri Sabhagar
19, Sir Vithaldas Thackersey Marg, Near
Bombay Hospital & Medical Research Centre,
New Marine Lines, Mumbai 400 020
Latitude and Longitude:
18.9404260 N 72.8280710 E
Approximate distance from:
Churchgate Railway Station:
650 meters (via Maharshi Karve Road)
Marine Lines Railway Station:
900 meters (via Maharshi Karve Road/
Sir Vithaldas Thackersey Marg)
Chatrapati Shivaji Terminus (CST):
1200 meters (via Mahapalika Marg)
M
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Churchgate
Railway Station
Flora Fountain
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 2204 2268 / 2285 2214
ATTENDANCE
SLIP
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*
Folio No.
No. of Shares
NAME AND ADDRESS OF THE SHAREHOLDER:
I hereby record my presence at the FORTY-FIRST ANNUAL GENERAL MEETING (POST - IPO) of the members of the Company
held on Thursday, July 5, 2018 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 2204 2268 / 2285 2214
Name of the
member(s):
Registered address:
e-mail Id:
Folio No. / *Client Id:
*DP Id:
I/We being the member(s) of
shares of Reliance Industries Limited, hereby appoint:
1)
2)
3)
of
of
of
having e-mail id
having e-mail id
having e-mail id
or failing him
or failing him
and whose signature(s) are appended below as my / our proxy to attend and vote (on a poll) for me / us and on my / our behalf at the
Forty-first Annual General Meeting (Post - IPO) of the members of the Company to be held on Thursday, July 5, 2018 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, 2018 and the Reports of the Board of
Directors and Auditors thereon
b) Audited Consolidated Financial Statement for the financial year ended March 31, 2018 and the Report of
Auditors thereon
2. Declaration of dividend on equity shares
3. Appointment of Shri P. M. S. Prasad, a Director retiring by rotation
4. Appointment of Shri Nikhil R. Meswani, a Director retiring by rotation
5. Re-appointment of Shri Mukesh D. Ambani as Managing Director
6. Re-appointment of Shri Adil Zainulbhai 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 2, 2018 to 5:00 p.m. (IST) on July 4, 2018.
The procedure to be followed for Web Check-in is as follows:
a.
b.
c.
d.
e.
f.
Log on to https://evoting.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 & “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
7. Ratification of the remuneration of the Cost Auditors for the financial year ending March 31, 2019
8. Approval of offer or invitation to subscribe to Redeemable Non-Convertible Debentures on private placement
Signed this..................... day of..................2018
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
‘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 appoints a Proxy and both the Member and Proxy attend the Meeting, the Proxy will stand automatically revoked.
In the case of jointholders, the signature of any one holder will be sufficient, but names of all the jointholders should be
stated.
6)
7) This form of proxy shall be signed by the appointer or his attorney duly authorized in writing, or if the appointer is a body
corporate, be under its seal or be signed by an officer or an attorney duly authorized by it.
8) This form of proxy will be valid only if it is duly complete in all respects, properly stamped and submitted as per the
applicable law. Incomplete form or form which remains unstamped or inadequately stamped or form upon which the
stamps have not been cancelled will be treated as invalid.
9) Undated proxy form will not be considered valid.
10) If Company receives multiple proxies for the same holdings of a member, the proxy which is dated last will be considered
valid; if they are not dated or bear the same date without specific mention of time, all such multiple proxies will be treated
as invalid.
Members’
Feedback Form
2017-18
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 2204 2268 / 2285 2214
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
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
Annual Report
Management’s Discussion
and Analysis Report
Business Responsibility
Report
Report on Corporate Social
Responsibility
Corporate Governance
Report
Board’s Report
Quality of Financial and
non-financial information in
the Annual Report
Information on
Company’s Website
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-1282
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
Reliance Foundation endeavours to
build an inclusive India by pioneering
a holistic model to address our nation’s
multifaceted development challenges,
and contribute to its collective
aspirations. In a span of seven years,
the development initiatives of Reliance
have touched the lives of 20 million
people across India.
Reliance Foundation endeavours to
build an inclusive India by pioneering
a holistic model to address our nation’s
multifaceted development challenges,
and contribute to its collective
aspirations. In a span of seven years,
the development initiatives of Reliance
have touched the lives of 20 million
people across India.
if undelivered, please return to
Karvy Computershare Private Limited
Unit: Reliance Industries Limited
Karvy Selenium Tower B, Plot No. 31 & 32
Gachibowli, Financial District,
Nanakramguda, Hyderabad - 500 032
There cannot be a better celebration of
There cannot be a better celebration of
our 40 years than to be with my entire
our 40 years than to be with my entire
Reliance Family of over 250,000 people
Reliance Family of over 250,000 people
in its full spirit and glory all together.
in its full spirit and glory all together.
Mukesh D. Ambani,
Reliance Family Day Speech, 2017
BSE • 500325
NSE • RELIANCE
BLOOMBERG • RIL:IN
CIN • L17110MH1973PLC019786
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai - 400 021
Tel: +91 22 3555 5000
Fax: +91 22 2204 2268/
22 2285 2214
www.ril.com
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