“For those who dare to dream,
there is a whole world to win.”
Shri Dhirubhai H. Ambani
Founder Chairman
Connecting everyone.
Connecting everywhere.
Connecting everything.
The Jio Revolution.
The Reliance motto of 'Growth is Life' is a
timeless expression of intent for Reliance,
even as we enter the fifth decade of our
operations. Our belief in a connected future
and shared value creation is unflinching
and absolute. It is reflected in the way we
think about our business, our people and
our country. Our robust business portfolio
ranging from energy to materials, retail to
digital services and entertainment touch
and transform in many different ways;
and our evolution mirrors the relentless
progress that our country has made over
the years and the spirit of dynamism and
hope that it brings to the world. The launch
of digital services under the Jio brand
is perhaps the strongest validation of
this spirit.
In a little over three years, Jio has
transformed the way India looks at
communication. Jio has ushered in a new
digital era, in which everyone, everywhere
has equal access to high-speed data, and
a bouquet of connected services that are
meant to simplify lives, increase efficiency
and productivity, and make information
available at the fingertips of over a billion
people.
The Jio Revolution has truly democratised
digitalisation in India, helping India become
the largest consumer of mobile data
worldwide.
At Reliance, we envision digital as an
all-encompassing, game-changing
paradigm that can positively impact
the lives of millions with applications
across business models, value chains and
customer touchpoints. Jio is being delivered
as a stable, scalable and sustainable platform
on which the dreams and aspirations of
#NewIndia can be realised. Our large-
scale investments in digital infrastructure
empowers our network and provides citizens
uninterrupted access to a wide repertoire of
services and conveniences. The introduction
of our ‘connected living’ concept will see
everyone, being connected everywhere,
to virtually everything. We are helping
transform the #InternetOfThings into the
#InternetOfLife.
Throughout this Integrated Annual Report,
we have tried to demonstrate how Reliance's
businesses function and create value, and
how they further our founder's dream and
mission, in a quest to contribute to the
unstoppable growth of India and to make the
lives of over a billion people better.
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 Standards, National Voluntary Guidelines (NVGs), United Nations Sustainable Development Goals (UN SDGs) and 13 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.
Scan the QR Code on your
smart device to view the
Integrated Annual Report online at
https://www.ril.com/ar2018-19/index.html
Other reports and information at www.ril.com
• Corporate sustainability related information
http://www.ril.com/Sustainability/CorporateSustainability.aspx
• Quarterly results and analyst presentations
http://www.ril.com/InvestorRelations/FinancialReporting.aspx
• Financial statements of subsidiary companies
http://www.ril.com//InvestorRelations/Downloads.aspx
HIGHLIGHTS FY 2018-19
₹6,22,809 crore
₹39,588 crore
₹8,63,996 crore
Consolidated Turnover
44.6%
y-o-y growth
Consolidated Profit After Tax
13.1%
y-o-y growth
Market Capitalisation
54.5%
y-o-y growth
INSIDE THIS REPORT
CORPORATE OVERVIEW
MANAGEMENT REVIEW
Reliance at a Glance
Key Performance Indicators
Letter to Shareholders
2
4
6
10 Board of Directors
12 Theme Introduction
14 Business Model:
Integrated Reporting
Oil and Gas Exploration & Production
16 Refining and Marketing
20 Petrochemicals
24
26 Retail
30 Digital Services
34 Media and Entertainment
36 Reliance Foundation
38 Reliance in Our Lives
40 Awards and Accolades
43 Company Information
44 Product Flow Chart
46 Financial Highlights
48 Management’s Discussion and
170
Analysis
Report on Corporate Social
Responsibility
GOVERNANCE
184 Business Responsibility Report
204
Independent Reasonable Assurance
on Sustainability Disclosures
206 Corporate Governance Report
238 Board's Report
Consolidated
335
Independent Auditors’ Report on
Consolidated Financial Statements
346 Consolidated Balance Sheet
347
Consolidated Statement
of Profit and Loss
Consolidated Statement of Changes
in Equity
348
350 Consolidated Cash Flow Statement
352
Notes to the Consolidated Financial
Statements
Salient Features of Financial
Statements of Subsidiary/Associates/
Joint Ventures
433
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
Standalone
259
Independent Auditors’ Report on
Financial Statements
268 Balance Sheet
269 Statement of Profit and Loss
270 Statement of Changes in Equity
272 Cash Flow Statement
274 Notes to the Financial Statements
440 Notice of Annual General Meeting
• Attendance Slip and Proxy Form
• Members’ Feedback Form 2018-19
Connecting everyone.
Connecting everywhere.
Connecting everything.
Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
RELIANCE AT A GLANCE
Realising India’s aspirations
RIL is India’s largest and most profitable private sector company. RIL continued to be a significant global player in the integrated energy
value chain while establishing leadership positions in the retail and digital services business in India. RIL is now focussed on building
platforms across its industry-leading businesses that will herald the Fourth Industrial Revolution and will create opportunities for the
nation to realise its true potential.
BUSINESS VERTICALS
REFINING AND
MARKETING
The robust operational performance, superior configuration and
consistent high utilisation of refineries at Jamnagar complex have
helped RIL outperform the Singapore refining benchmark.
₹3,93,988 cr 68.3 MMT
₹19,868 cr
Crude throughput
PETROCHEMICALS
₹1,72,065 cr
₹32,173 cr
OIL AND GAS (E&P)
₹5,005 cr
₹(1,379) cr
RETAIL
₹1,30,566 cr
₹5,546 cr
DIGITAL SERVICES
Owns and operates one of the most integrated petrochemicals
facilities globally, with a portfolio comprising polymers, polyesters,
fibre intermediates, aromatics and elastomers.
37.7 MMT
Highest ever Petchem production
Upstream portfolio in India includes operations in conventional
deepwater acreages and the unconventional Coal Bed Methane
(CBM) block.
58.9 BCFe
RIL’s share of domestic production
India’s largest retailer by reach, scale, revenue and profitability.
Established presence across key consumption baskets and
holds a leadership position in food, consumer electronics and
fashion retailing.
PAGE 16
PAGE 20
PAGE 24
6th fastest growing retail company in the world*
PAGE 26
Jio has built a world-class all-IP data, strong future-proof network
with the latest 4G LTE technology. It is the only greenfield all-IP
network supporting Voice over LTE (VoLTE) technology.
₹46,506 cr
₹8,784 cr
Ranked #1
in the country by Adjusted Gross Revenue (AGR)
MEDIA AND
ENTERTAINMENT
₹5,116 cr
₹(52) cr
Revenue
EBIT
2
Network18 is a media and entertainment powerhouse with its
foothold in television, filmed entertainment, digital business,
magazines, mobile content and allied businesses.
800+ million
people in India reached by Network18 TV channels
PAGE 30
PAGE 34
*Source: Global Powers of Retailing 2019, Deloitte
Reliance Industries Limited | Integrated Annual Report 2018–19 By combining economic success with environmental protec tion and social responsibility, RIL is committed to delivering sustainable
growth and creating value for the nation through its products and services that enhance the quality of life for everyone, everywhere.
SUSTAINABILITY AT THE CORE
VALUE DRIVERS FOR RIL
ENVIRONMENT
2.1+ crore
Saplings planted till date
7.32+ crore m3
Rainwater harvesting capacity
created since inception
PAGE 112
PEOPLE
1,94,056
Direct employment
50+ lakh
Indirect employment
CORPORATE SOCIAL
RESPONSIBILITY
₹904 crore
CSR expenditure during the year
26 million
Lives touched across 18,000+
villages and 200+ urban
locations since inception
VALUE ADDED (CONSOLIDATED)
PAGE 120
PAGE 170
INNOVATION AND R&D
120
Patent applications granted
during the year
900+
Researchers and
scientists
SCALE AND TECHNOLOGY
World’s largest refinery at a single location
Among the top 10 producers for key petrochemicals
India’s largest mobile data network
First retailer in India to cross the ₹1,00,000 crore turnover milestone
PLATFORMS
Software as a Service (SaaS) based platforms
Enterprise data lake
Analytics and data science engines
Enterprise integration capabilities
Value added is defined as the value created by the activities of a business and its employees.
FY 2018-19
₹2,18,163 crore
FY 2017-18
₹1,68,110 crore
(₹ in crore)
56,919
27,749
12,488
3,852*
904
1,16,251
Stakeholders
Reinvested in the Group to
maintain and develop operations
Providers of Debt
Employee Benefits
Providers of Equity Capital
Contribution to Society
Contribution to National Exchequer
(₹ in crore)
49,233
18,087
9,523
3,554
771
86,942
* Dividend recommended for FY 2018-19 is `4,641 crore, including `789 crore as dividend distribution tax
3
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. KEY PERFORMANCE INDICATORS
Creating consistent value for all
PROFIT AND LOSS METRICS
Consolidated
BALANCE SHEET METRICS
Consolidated
TURNOVER
₹6,22,809 crore
(₹ in crore)
44.6% y-o-y
NET WORTH
₹3,24,644 crore
2018-19
2017-18
2016-17
2015-16
2014-15
6,22,809
4,30,731
3,30,180
2,93,298
3,88,494
31-03-2019
31-03-2018
31-03-2017
31-03-2016
31-03-2015
PROFIT AFTER TAX
₹39,588 crore
(₹ in crore)
13.1% y-o-y
DEBT EQUITY RATIO
0.74
2018-19
2017-18**
2016-17
2015-16
2014-15
EARNINGS PER SHARE
₹66.8
2018-19#
2017-18#
2016-17
2015-16
2014-15
SHAREHOLDERS METRICS
39,588
34,988
29,901
25,171
23,566
(₹)
9.7% y-o-y
66.8
60.9
101.3
85.4
80.1
CAGR
26.1%*
2018-19
2017-18
2016-17
2015-16
2014-15
BOOK VALUE PER SHARE
₹653.3
31-03-2019#
31-03-2018#
31-03-2017
31-03-2016
31-03-2015
CAGR
29.0%*
(₹ in crore)
12.0% y-o-y
3,24,644
2,89,798
2,58,511
2,31,556
2,18,482
0.74
0.75
0.75
0.78
0.74
(₹)
31.8% y-o-y
653.3
495.6
891.2
785.5
742.3
MARKET CAPITALISATION
₹8,63,996 crore
(₹ in crore)
54.5% y-o-y
DIVIDEND PER SHARE
₹6.5
(₹)
8.3% y-o-y
31-03-2019
31-03-2018
31-03-2017
31-03-2016
31-03-2015
8,63,996
5,59,223
4,28,909
3,38,703
2,66,847
CAGR
31.9%*
2018-19#
2017-18#
2016-17
2015-16
2014-15
* CAGR since IPO
**Excludes exceptional item of `1,087 crore representing profit from divestment of stake in Gulf Africa Petroleum Corporation
# Pursuant to issue of Bonus Shares in the ratio 1:1 in FY 2017-18
4
6.5
6.0
11.0
10.5
10.0
Reliance Industries Limited | Integrated Annual Report 2018–19 SOCIAL METRICS
Consolidated
HSE EXPENDITURE
₹664 crore
(₹ in crore)
50.9% y-o-y
R&D EXPENDITURE
₹2,377 crore
(₹ in crore)
30.3% y-o-y
CONTRIBUTION TO NATIONAL
EXCHEQUER
₹1,16,251 crore
(₹ in crore)
33.7% y-o-y
0
3
4
2
0
4
0
4
4
9
0
3
4
6
6
8
4
4
,
1
9
5
2
,
1
0
2
2
,
1
7
7
3
,
2
4
2
8
,
1
1
5
2
,
6
1
,
1
2
4
9
,
6
8
1
5
9
,
1
7
7
1
8
,
0
5
7
2
8
,
0
4
2014-15
2015-16
2016-17
2017-18
2018-19
2014-15
2015-16
2016-17
2017-18
2018-19
2014-15
2015-16
2016-17
2017-18
2018-19
CONSUMER BUSINESS METRICS
RELIANCE FOUNDATION
RETAIL STORES
10,415
(nos)
5
1
4
,
0
1
3
7
5
,
7
6
1
6
,
3
5
4
2
,
3
1
2
6
,
2
NUMBER OF JIO
SUBSCRIBERS (FY 2018-19)
306.7 million
(million)
CUMULATIVE REACH
26 million
(million)
6
2
7
.
6
0
3
1
.
0
8
2
3
.
2
5
2
3
.
5
1
2
0
2
2
1
5
6
2014-15
2015-16
2016-17
2017-18
2018-19
Jun 2018
Sep 2018
Dec 2018
Mar 2019
2014-15
2015-16
2016-17
2017-18
2018-19
5
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. LETTER TO SHAREHOLDERS
A robust foundation
for the golden decade
Dear Fellow Shareowners,
It gives me great pleasure to share with you the
exceptional performance of our Company in
FY 2018-19. Our revenue and profit numbers have
touched new heights, strengthening our position
as India’s largest private sector company by market
capitalisation and profitability.
Mukesh D. Ambani
Chairman and Managing Director
We now rank in the top 100 profitable
companies in the Fortune Global 500 list of
‘World’s Largest Corporations’. We delivered
a solid performance in our hydrocarbons
businesses despite the volatile oil price
environment and incremental capacities in
some of our product categories.
Consumer businesses witnessed
phenomenal growth in terms of revenues
and profitability, with Reliance Retail and
Jio now collectively contributing nearly
25% of consolidated segment EBITDA.
Global economic growth remained healthy
at 3.6% in CY 2018, as against 3.8% in
CY 2017, impacted by weaker performance
in the European Union and China.
Economic activity was driven by a boost in
spending due to tax cuts by the US.
Global trade growth was robust in the first
half of 2018, but tapered later in the
year with trade tensions and higher
energy prices.
The Indian economy continued to witness
an increase in investments, with Gross
Fixed Capital Formation growth at a
six-year high of 10%. Healthy industrial
activity continued and service indicators
sustained positive trends. Service exports
growth is at a seven-year high of almost
17%. The Indian economy remains the
fastest growing major economy in the
world.
6
In a volatile hydrocarbon chain
environment, Reliance recorded its highest-
ever consolidated net profit of `39,588
crore (US$5.7 billion) during the year,
registering a growth of 13.1% y-o-y.
The petrochemical business contributed
record earnings, as the benefits of our
investments in capacities and technologies
offset weak margins in the polymer chain.
Our refining business also delivered
resilient performance in a challenging
global environment where gasoline
margins have plummeted to a nine-year
low.
The strong financial performance also
reflected the increasing contribution
of consumer businesses in Reliance’s
earnings.
Retail business continues to scale
new heights, achieving two important
milestones during the year – crossing the
turnover mark of `1,00,000 crore and the
store count of 10,000. We are witnessing
strong traction across consumption
baskets, achieved on the back of
unmatched service and value proposition.
The strong improvement in profitability
reflects our increasing scale and focus on
efficiencies.
It is heartening to see India embrace the
digital life. Reliance Jio continues to add
subscribers at a rate unprecedented in the
telecom world. With over 306.7 million
mobile data subscribers, Reliance Jio has
propelled India to become the largest
mobile data consuming market in the
world. The whole-hearted acceptance of
Jio's digital services is evident from the
sheer volume of data carried on its wireless
network – an astounding 3 exabytes per
month. Jio is now ranked #1 among mobile
telecom operators in the country, in terms
of Adjusted Gross Revenue (AGR). With
the demerger of fiber and tower assets,
Jio has emerged as an asset-light digital
services company. The demerger has also
significantly reduced our leverage and
strengthened our Balance Sheet.
REFINING & MARKETING
Global oil demand growth at 1.2 mb/d in
CY 2018 was around the 10-year average
despite higher oil prices. Brent, the global
crude oil benchmark, at US$71/bbl in CY
2018 was higher at US$17/bbl y-o-y.
US, China and India accounted for almost
all of the global oil demand growth,
with oil consumption in these economies
rising by 1.1 mb/d.
On the other hand, global oil supply grew
by 2.6 mb/d in CY 2018. Non-OPEC supply
grew by 2.7 mb/d, on the back of strong
Reliance Industries Limited | Integrated Annual Report 2018–19 supply growth in the US (2.2 mb/d) and
Canada (0.4 mb/d). OPEC (Organization of
the Petroleum Exporting Countries) supply
contracted by 0.1 mb/d y-o-y in CY 2018
as a result of sharp production declines
in Venezuela and adherence to the supply
restraint deal between OPEC and non-OPEC
producers.
The Refining & Marketing segment reported
a decrease of 19.8% y-o-y in EBIT– amidst a
challenging price margin environment and
particularly weak gasoline demand in the
second half of the year. Gasoline margins
have been impacted due to weak demand
growth, with high pump prices and strong
refinery runs leading to rising inventories.
At US$9.2/bbl, RIL's refining margin
remained relatively strong even
in a dynamic and volatile market.
RIL maintained a significant premium of
US$ 4.3/bbl over the benchmark Singapore
complex margins. RIL’s superior refining
margins are a result of superior product
slate, robust risk management and higher
secondary unit throughputs.
All units of the gasification complex,
including air separation units, material
handling systems, gasifier islands, syngas
shift and processing facilities, sulphur
recovery units, and associated utilities and
off-sites, have been started safely.
The complex is currently under
stabilisation. On the domestic retail front,
with a countrywide operational network of
1,372 retail fuel outlets, RIL is covering all
the key highways in the country.
PETROCHEMICALS
Petrochemicals segment demonstrated
the earning power of the new plants
commissioned over the last investment
cycle, unmatched integration and feedstock
flexibility. During the year, we commenced
cracking of Ethane at Nagothane. The
impressive earnings in the petrochemicals
business is a result of Reliance’s
investments over the last few years. This is
reflected in the record production of 37.7
MMT and highest ever earnings delivered
by the business this year. The EBIT margins
increased by 180 bps this year on the
back of strong integrated polyester chain
margins.
The strong results were achieved in an
environment of declining utilisation rates in
key product chains with new supply
ramp-up. This demonstrates the resilience
of the Reliance business model, which is
based on deep inter-linkages between
refining and petrochemical chains,
feedstock flexibility and a wide
product portfolio.
By leveraging the capabilities in polymer
formulations, materials engineering,
product design and 3D printing, Reliance
is strengthening its new business line for
Advanced Materials & Composites to deliver
innovative products and solution offerings
to the industry.
OIL & GAS
FY 2018-19 marked progress on
plans to monetise our discovered
deepwater resources. Development work
for R-Cluster and Satellite Cluster fields
has commenced, while field development
plans for MJ have been approved by the
government. These fields are expected to
come on-stream from mid-2020.
We also progressed on the second phase
of development activities at our domestic
CBM blocks to enhance production from
these fields.
Our ongoing upstream business continues
to be impacted by a natural decline in
volumes. Domestic production was down
25.4% at 58.9 Bcfe, while the US Shale
volume fell 32.4% to 94.5 Bcfe during
FY 2018-19. There has been steady
production from the CBM fields in
Sohagpur.
At US$9.2/bbl, RIL's refining margin
remained relatively strong even in a
volatile market dynamics.
The petrochemicals business earnings
reflect the benefits of Reliance’s
investments over the last few years.
Development work for R-Cluster and
Satellite Cluster fields has commenced
while field development plans for
MJ have been approved by the
government.
7
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. LETTER TO SHAREHOLDERS (CONTD)
RELIANCE RETAIL
Reliance Retail became the first retailer in
India to cross the `1,00,000 crore turnover
milestone and is now ranked 94th in
Deloitte’s Global Powers of Retailing 2019
list. Reliance Retail also crossed the 10,000
store count milestone. It has cemented
its position as India’s largest retailer
by revenue and profitability, delivering
superior value to its customers, suppliers
and other stakeholders.
Reliance Retail’s revenue growth in
FY 2018-19 was primarily driven by
aggressive store addition and spurt in
same-store sales. Growing at a rate of
nearly 10 stores per day in the last two
years, Reliance Retail witnessed one of
the fastest store expansions in the world.
It added a total of 2,829 stores to its tally
during FY 2018-19. As on March 31, 2019,
Reliance Retail operated 10,415 retail stores
in over 6,600+ towns and cities, covering
22 million sq. ft. of area.
Reliance Retail’s New Commerce initiative
is now in the pilot phase. The differentiated
business model will provide a technology
platform for millions of small merchants
across India to strengthen and grow
their business. Leveraging technology
and connectivity, the platform will drive
efficiency and value creation for all players
in India’s retail market –principally the
producers / brand owners, supply chain,
merchants and customers.
DIGITAL SERVICES
Jio added an average 10 million subscribers
a month and crossed the 300 million
subscriber milestone this year to become
the world’s fastest growing digital services
company. Jio has not only revolutionised
India’s telecommunication industry but
also digitised its hinterlands through its
extensive network penetration. Recently,
Jio was recognised for its meaningful
impact by being ranked #1 globally on
Fortune’s 'Change the World' list.
The ranking evaluates companies that use
the profit motive to help the planet and
make an important social impact.
Jio maintained a healthy growth
momentum in financial parameters too,
with its EBITDA and net profit witnessing
a sharp growth of 124% y-o-y and 310%
y-o-y, respectively.
The phenomenal level of customer
engagement on Jio’s platform is evident
from the fact that over 3 exabytes per
month of data is carried on its wireless
network. Every Jio subscriber consumes
on an average 10.9 GB data, 823 minutes
of voice calls and 17 hours of video per
month. In CY 2018, Jio carried close to 71%
of the total 4G traffic of India.
It has also entered into a series of content
partnerships with Disney and Star India,
among others, to provide best-in-class
content to its subscribers.
Expanding at the rate of nearly 10
stores per day in the last two years
Providing the power of data and
internet to rural India and the lowest
economic strata
8
Wireline network connectivity in India
continues to remain underserved.
Jio is working towards serving the need
for better connectivity with its GigaFiber
services. This would include home
broadband, entertainment and smart home
IoT solutions. Jio, with its FTTH services,
has set a target to connect 50 million
homes across the country. To accelerate
Jio’s commitment to connect 50 million
homes with Jio’s solutions, RIL has
made strategic investments in Hathway
Cable and Datacom Limited and DEN
Networks Limited.
During the year, Jio demerged passive
tower and fiber infrastructure into an
InvIT structure. Jio has now emerged
as an asset-light, focussed digital
services company.
CREATING AN INDIAN DIGITAL
ECOSYSTEM
We are making a strategic transition
by creating multiple platforms across
consumer business, agriculture, education
and healthcare that will accelerate our
growth. In addition to its own digital
platform, in the past year, Reliance has
partnered with more than a dozen
coming-of-the-age businesses. These
are mostly in the Technology, Media and
Telecom (TMT) and retail sectors, along
with strategic investments in two major
MSOs – Hathway and Den. Reliance
believes that creating an ecosystem with
new-age entrepreneurs will help unleash
the potential of India’s vast human capital.
ROBUST CASH FLOWS AND BALANCE
SHEET
During the year, Reliance generated a
record PBDIT of `92,656 crore, up 26.8%
y-o-y, and its highest ever net profit of
`39,588 crore, up 13.1% y-o-y. RIL enjoys
prime credit ratings as a result of its fiscal
prudence and strong cash flows. We have
retained our domestic credit ratings of
‘CRISIL AAA’ from CRISIL and ‘IND AAA’ from
India Rating. For our international debt,
Reliance Industries Limited | Integrated Annual Report 2018–19 I would like to convey my sincere
appreciation to the Board of Directors
for their guidance. I would also like to
express my heartiest gratitude to all our
stakeholders for their enduring faith in
Reliance.
With best wishes,
Sincerely,
Mukesh D. Ambani
Chairman and Managing Director
July 2, 2019
we have an investment grade ‘Baa2’ rating
from Moody’s and ‘BBB+’ from S&P.
During FY 2018-19, Reliance Jio Infocomm
Limited (RJIL) successfully tied up
JPY 53.5 billion – the largest Samurai
loan for an Asian corporate and also for a
telecom company. Additionally, RJIL tied
up US$825 million and EUR 150 million
K-Sure-supported Export Credit Agency
(ECA) financing with door-to-door tenor
of over 10 years – the largest financing
transaction globally in the telecom sector
supported by K-Sure.
The demerger of the tower and fiber
assets of Jio into separate InvITs has
helped establish Jio franchise as an asset-
light digital services company.
The transaction has resulted in a significant
liability reduction for Reliance.
Reliance will also get to participate in
value-unlocking through third-party use
of these infrastructure assets through the
preference shares that Reliance holds in
these entities.
GOVERNANCE AND SAFETY
Reliance’s governance standards are built
on the foundation of systems that support
transparency and ethical business conduct.
In an effort to strengthen risk management
and internal controls, Reliance instituted
the Reliance Management System (RMS),
designed to operationalise a harmonious
work culture by codifying and embedding
standardised processes into the DNA of
every function. RMS has been further
strengthened by leveraging the power of
digitised platforms.
In all our businesses, the health and safety
of our employees is sacrosanct. This year
marks a decade of safe operations in
the E&P business, which is a significant
achievement compared to any benchmark.
In FY 2018-19, we intensified our efforts
on safety by implementing Competency
Assurance System to ensure reliable
operation delivery and safety competence
among the frontline staff.
SUSTAINABILITY
We are committed to making continuous
improvements across the triple bottom line
and enabling positive change in the society.
Our ability to manage, utilise and transform
the six capitals – Natural Capital, Human
Capital, Manufactured Capital, Intellectual
Capital, Financial and Social and
Relationship Capital – is the key to creating
value for our stakeholders. In our continued
pursuit of excellence, noteworthy capital
investments were undertaken, which led
to reduction of carbon emissions and
enhancement of resource efficiency. We
are committed to becoming a leader in the
emerging circular economy and becoming
one of the largest recyclers of plastics
in India.
Integral to growing revenue is the
ongoing improvement of our social and
relationship capital. Reliance Foundation
is committed to bringing about a positive
change in the lives of our stakeholders. Our
business objectives are aligned with the
Global Sustainable Development Goals,
which is reflected through our work in
the areas of rural transformation, health,
education, sports for development, disaster
response, arts, culture and heritage, and
urban renewal. In FY 2018-19, there was
an impressive growth in the number of
beneficiaries of our community outreach
programmes.
CONCLUSION
We are in a rapidly changing world where
digital connectivity and abundance of
data is reshaping value creation models
across verticals. We continue to improve
and evolve consistently, fostering an
entrepreneurial mindset across the
organisation. Overall, we delivered yet
another year of robust performance,
achieving remarkable success across our
businesses. I would like to thank the entire
team at Reliance for their untiring efforts
and unflinching commitment to achieve
the lofty goals we have set for our
golden decade.
9
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BOARD OF DIRECTORS
C
Shri Mukesh D. Ambani
Chairman and Managing Director
Smt. Nita M. Ambani
Non-Executive, Non-Independent Director
Shri Mansingh L. Bhakta
Lead Independent Director
C
C
C
M
Shri Yogendra P. Trivedi
Independent Director
Prof. Dipak C. Jain
Independent Director
Committees
Audit Committee
Stakeholders’ Relationship
Committee
Corporate Social Responsibility
and Governance Committee
Human Resources,
Nomination and
Remuneration Committee
Finance Committee
Health, Safety and Environment
Committee
Risk Management Committee
Chairman
Member
M
MM
M
C
MC
Dr. Raghunath A. Mashelkar
Independent Director
Shri Adil Zainulbhai
Independent Director
10
Reliance Industries Limited | Integrated Annual Report 2018–19CM
M M
M M
M
Shri Raminder Singh Gujral
Independent Director
Dr. Shumeet Banerji
Independent Director
M
M
M
MM
C
M
M M
Smt. Arundhati Bhattacharya
Independent Director
Shri Nikhil R. Meswani
Executive Director
Shri Hital R. Meswani
Executive Director
M
M
M
Shri P. M. S. Prasad
Executive Director
Shri Pawan Kumar Kapil
Executive Director
11
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Connecting everyone.
Connecting everywhere.
Reach
Infrastructure
REFINING AND
MARKETING
Jamnagar site has
complexity index of 21.1
68.3 MMT crude
throughput
Crude Processing Capacity
1.24 mbpd
Managing
650 million transactions
annually across fuel
retail network
Every 3.5 minutes,
RIL fuels a plane & every
9th diesel engine is fuelled
by RIL, in India
RIL
processing
1.5% of global
transportation
fuel
Fuel retail
network serves
500 districts & cover
~2,90,000 kms
of National and State
Highways
PETROCHEMICALS
Created the world’s first
and only virtual pipeline
for Ethane from USA to
RIL plants in India with
6 VLEC’s and pipelines on
the ground
World’s first ever Refinery
Off-Gas Cracker (ROGC)
complex of 1.5 MMTA
capacity
37.7 MMT petrochemicals
production
OIL & GAS
Portfolio includes
operations in conventional
deep water acreages and
unconventional Coal Bed
Methane (CBM) block
100% Field uptime in
KG D6 operations
2,000 million
PET bottles recycled
annually
Fashion-for-Earth
initiative connected
with end consumers for
sustainability in
fashion with
75 million
impressions
Petrochemical
products exported
to over
100 countries
Shahdol-Phulpur
302 kms
pipeline connects
CBM gas fields
(Shahdol, MP) to the Indian
gas grid (Phulpur, UP)
12
Reliance Industries Limited | Integrated Annual Report 2018–19
Connecting everything.
Connects to the
customer through
its presence over
6,600
towns and
cities including
Tier II and III cities
Over
500 million
footfall in
Retail stores
Infrastructure
RETAIL
10,415 stores covering
22 million sq ft area
Reliance Retail operates
the most extensive store
network in the country
306.7 million
subscribers on
Jio network
Jio is fast
approaching its
target of 99%
population
coverage
Network18's
digital content properties
are now used by
> 130 million
people
Network18's
television channels
reach out to
800+ million
people in India
1 in every 2 Indians is a
consumer of Newtork18's
broadcast content
DIGITAL SERVICES
Jio has built the country’s
largest all-IP data network
on 4G-LTE technology
The Jio network carries
over 3 Exabytes of data
and over 250bn VoLTE
minutes per month
MEDIA &
ENTERTAINMENT
Network18 boasts of a
portfolio of 55 domestic
channels.
#1 News network by
viewership
Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
13
BUSINESS MODEL: INTEGRATED REPORTING
Multi-capital approach to value creation
INPUTS
PROCESS
NATURAL CAPITAL
• Zero freshwater withdrawal at Jamnagar
Page 112
Manufacturing Division
• 2,650.68 (000' GJ) of energy saved from
conservation initiatives
HUMAN CAPITAL
• ₹664 crore of HSE expenditure
• 23,000+ ideas on Mission Kurukshetra
Page 120
innovation platform
• 66+ lakh man-hours of training imparted
• Employees from over 16 nationalities
MANUFACTURED CAPITAL
• ₹10,02,406 crore of asset value
• Over 170 crude grades processed at
Page 132
Jamnagar
• Crude processing capacity of 1.24 mbpd
Page 140
INTELLECTUAL CAPITAL
• 164 patent applications filed during the year
• 900+ researchers and scientists
• Strategic partnerships with leading
organisations/institutes
• Partnering with technology platforms to
create a digital ecosystem
FINANCIAL CAPITAL
₹1,32,445 crore of capital expenditure
Page 148
SOCIAL AND RELATIONSHIP
CAPITAL
• Goods and services worth ₹18,566 crore
Page 150
sourced from indigenous suppliers
• With over 8,000+ applications, 106+ start-ups
supported through JioGenNext
• `904 crore spent on CSR initiatives
14
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.
Refining and
Marketing
PAGE 16
Petrochemicals
PAGE 20
BUSINESS MODEL
Oil and Gas
Exploration &
Production
PAGE 24
n m
External Envir o
Pg 48-4 9
s
t
u
p
n
I
t
n
e
S
t
r
P
g 1
a
t
e
1
g
0
-
1
y
1
1
s
e
l
b
a
r
e
v
i
l
e
D
D
i
g
t
a
l
P
P
g
l
a
1
t
4
f
7
o
r
m
s
s
s
e
n
i
s
u
B
s
r
o
t
a
i
t
n
e
r
e
ff
D
i
s
e
m
o
c
t
u
O
e
c
n
a
m
r
7
0
2-1
Perfo
Pg 5
t
n
Enterprise Risk Ma n a g e m e
Pg 162-16 8
Retail
Digital Services
PAGE 26
PAGE 30
Media and
Entertainment
PAGE 34
Reliance Industries Limited | Integrated Annual Report 2018–19
VALUE CREATION
RIL’s business model and outcomes are aligned with the Integrated Reporting framework of International Integrated
Reporting Council (IIRC), the United Nation’s Sustainable Development Goals (UN SDGs) and 14 other frameworks.
OUTPUTS
OUTCOMES
UN SDGs
Non-hazardous waste
798.61 (000' MT)
Total water recycled
73,142.1 (000' m3)
Waste water discharge
27,871.9 (000' m3)
One of the largest recyclers
of PET bottles (~2 billion)
• Mitigating global warming
• Investments in long-term renewable
energy solutions
• Promoting use of eco-friendly fuels and
clean technology
• Resource stewardship
Focus on millenial
workforce
Collaboration with
world-class universities
49.8%
plus are millennials
Over 500 million
footfalls in Retail stores
Gross refining margin
US$9.2/bbl
Spectrum footprint
1,108 MHz
Crude throughput
68.3 MMT
Petrochemical production
37.7 MMT
R|Elan specially engineered
sustainable fibre
Patents granted
120
Have investments in
IP-rich companies such as
Haptik, Indiavidual
(Embibe), Reverie
Sankhyasutra among others
Over 4,000
customisations of plant
manufacturing process
Total Revenue
`6,22,809 crore
Profit After Tax
`39,588 crore
Return on Capital Employed
(standalone)
24.9%
Earnings per share
`66.8
Villages impacted
18,000+
through RF
Urban locations impacted
200+
through RF
Customer engagement
metrics continued to
increase
Total Value Added during
the year
`2,18,163 crore
• Healthier and safer working environment
• Enhanced employee engagement
• Investing in proficient workforce
• Direct and indirect employment
generated
• Facilitating leadership programmes
• World-class infrastructure facilities
• Creating a digital ecosystem
• Future-ready for transition to 5G and
beyond
• Most extensive retail store network in the
country
• Driving innovation culture with next-gen
technologies
• Product stewardship
• Breakthrough R&D in big data and
digitalisation
• Strong earnings per share
• 31.9 % CAGR in market capitalisation
• Building sustainable livelihoods
• Enhanced community reach
• Effective stakeholder engagement
• Better customer experience through
digitisation
15
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
BUSINESS REVIEW
Refining and Marketing (R&M)
MAJOR PRODUCTS AND BRANDS
Crude processing
capacity
1.24 mbpd
REFINING
Propylene
Feedstock for polypropylene
LPG
Domestic, commercial and
industrial fuel
Naphtha
Feedstock for petrochemicals
such as ethylene, propylene
and fertilisers and as fuel in
power plants
High Speed Diesel
Transport fuel
Sulphur
Feedstock for fertilisers and
pharmaceuticals
16
Gasoline
Transport fuel
Alkylate
High-octane blend stock for
gasoline
Petroleum Coke
Fuel for power plants, cement
plants and feed for gasification
Superior Kerosene Oil
Domestic fuel
Aviation Turbine Fuel
Aviation fuel
Reliance Industries Limited | Integrated Annual Report 2018–19 Jamnagar site
has complexity
index of
21.1
PETROLEUM RETAIL
Reliance Gas
Liquefied Petroleum Gas (LPG)
Domestic, commercial and
industrial fuel
Reliance Petroleum Retail
Transportation Fuels
Retail distribution of fuels
Auto LPG
Auto LPG
Auto fuel outlet
Trans Connect
Fleet Management Services
Fleet management solutions
A1 Plaza
Highway Hospitality Services
Highway food plaza
Qwik Mart
Convenience Shopping
Shopping of beverages, snacks
gifts on highways
Refresh
Foods
Passenger amenities / food
courts on highways
Relstar
Lubricants
Engine oil and lubricants
Reliance Aviation
Jet/Aviation Turbine Fuel
Aviation fuel
17
Reliance Petroleum
retail outlets
1,372
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BUSINESS REVIEW (CONTD)
Refining and Marketing (R&M)
VISION
Jamnagar shall be the refinery
icon of the world with
best-in-class performance
MISSION
Ensure the Jamnagar refinery
is future-ready with a strategic
transformation to optimal
oil-to-chemicals
MEGATRENDS
STRENGTHS
Bottomless Product Slate
Producing oil products at higher margins
Oil-to-Chemicals
Integrated value chain from oil-to-chemicals
Technological Revolution
Innovation through application of technology
New Energy
Alternate energy ‘renewables’
Cleaner Fuel
Cleaner and sustainable form of mobility,
including e-regulatory changes of IMO 2020
READ MORE ON PAGE 54
1
2
3
4
5
18
Best-in-class Portfolio
Jamnagar site has
complexity index
of 21.1
Increasing the
Advantage
Through the Petcoke
Gasification complex
Logistics and Supply-
Chain
State-of-the-art
logistics infrastructure
Crude Selection and
Sourcing
Crude portfolio
optimisation
Readiness for
oil-to-chemicals
Reliance Industries Limited | Integrated Annual Report 2018–19 ILLUSTRATION
Propane – Surging
growth story
Action
Undertook detailed assessment to
identify potential industries and
benefits vis-à-vis substitutes of High
Speed Diesel (HSD) and partnered
with customers to provide know-how
on installation and usage
Outcome
RIL has become the preferred
propane supplier to auto ancillary,
ceramic and steel industry.
Growth in monthly sales
400%
PERFORMANCE
(cid:25)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:26)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:27)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:28)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
Revenue (` in crore)
EBIT (` in crore)
GRM (US$/bbl)
Outperformed Singapore complex refining margins by (US$/bbl)
(cid:30)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
6.6
8.4
8.6
9.2
8.1
8.6
10.8
11.0
11.6
9.2
(cid:31)
(cid:25)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:26)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:27)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:28)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:30)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:31)
19
3.1
3.2
0.7
1.4
2.2
2.3
3.3
5.2
4.4
4.3
5,00,000
4,00,000
3,00,000
2,00,000
1,00,000
0
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
* Excludes exceptional item of ₹1,087 crore representing profit from divestment of stake in Gulf Africa Petroleum Corporation during FY 2017-18
* Excludes exceptional item of ₹1,087 crore representing profit from divestment of stake in Gulf Africa Petroleum Corporation during FY 2017-18
5,00,000
4,00,000
3,00,000
2,00,000
1,00,000
0
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.9,8479,18212,81513,39215,82725,05623,53424,782*19,8683,39,8904,05,8523,72,9233,26,5323,93,9883,06,0952,50,8332,34,9451,75,1202,35,1756,056 PHARMA AND HEALTHCARE
Medicine blister packs, syringes,
blood bags, IV bottles and lab coats
for doctors
BUSINESS REVIEW (CONTD)
Petrochemicals
MAJOR PRODUCTS AND BRANDS
INFRASTRUCTURE
Roads, buildings, windmills, solar panels
and telecom poles (Jio)
TRANSPORT AND
AUTOMOTIVE
Metro, cars, mass
transport and tyres
WATER STORAGE AND SUPPLY
Water storage tanks and PVC pipes
AGRICULTURE/PLASTICULTURE
Drip irrigations, pond linings, crop/fruit
covers, sprinklers, mulching and silage bags
37.7 MMT
Highest petrochemical
production
20
Reliance Industries Limited | Integrated Annual Report 2018–19 SPORTS
Golf balls, turf and
sportswear
RESIDENTIAL
Apparels, beds, sofas, rugs,
pillows, wood floors, curtains,
consumer durables and FMCG
World's
largest
Integrated polyester
producer
PACKAGING
Plastic bottles and disposable
packages
11
locations in India
3
in Malaysia
INDUSTRIAL
Cables and ducting, and 3D printing
21
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BUSINESS REVIEW (CONTD)
Petrochemicals
VISION
To be among the Top 5
petrochemical companies
in the world
MISSION
To enrich lives and deliver
smiles by harnessing the power
of chemistry
MEGATRENDS
STRENGTHS
Oil-to-Chemicals
Integrated value chain from oil-to-chemicals
Technological Revolution
Innovation through technology, materials
engineering, product design and
market-focused application development
Sustainability and Circular Economy
Closing the loop and rethinking raw materials
Urbanisation
Meeting the new global market demands
Evolving Consumption Patterns
Transforming lifestyles of the diverse masses
READ MORE ON PAGE 62
1
2
3
4
5
22
Integrated
Petrochemical Producer
Refinery generating
world-class products at
Jamnagar
Sustainability/ Circular
economy
Creating value from
waste
Market Environment
and Responsiveness
Record high
productions to meet
market demands
Wide Product Portfolio
Moving closer to the
consumer with every
product and brand
Feedstock Flexibility
Increased with JMD
expansion
Reliance Industries Limited | Integrated Annual Report 2018–19 ILLUSTRATION
Catalysing waste reduction, increasing sustainability in fashion
Fashion industry has a large carbon footprint due to the complexities involved in the long
value chains for raw material sourcing, manufacturing, product processing, dyeing and
colouration, shipping, retail, consumer use and post-use disposal.
Action
Reliance Petrochemicals launched 'Fashion-for-Earth', an overarching initiative that provides
a thrust to usage of materials in a sustainable manner, inculcates circularity in the fashion
industry and inspires like-minded partners and the downstream industry to adopt waste
reduction, thereby contributing to the enhancement of the quality of life of our future
generations.
Scale of Impact: Reliance launched a number of nation-wide initiatives such as #earthtee,
Circular Design Challenge and #EOOTD under the Fashion-for-Earth initiative. More than 75
million consumer impressions were achieved.
Outcome
Several industry leaders, designers, celebrities and social influencers were involved
in raising environmental awareness. Each initiative was covered by the leading
newspapers, magazines and television channels, leading to a multiplier effect.
PERFORMANCE
Revenue (` in crore)
EBIT (` in crore)
EBIT margin (%)
14.6
14.1
10.5
7.6
8.1
8.6
12.4
14.1
16.9
18.7
2,00,000
1,60,000
1,20,000
80,000
40,000
0
2,00,000
1,60,000
1,20,000
80,000
40,000
0
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
(cid:26)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:27)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:28)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:30)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:31)
(cid:26)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:27)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:28)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:30)(cid:31)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:31)
23
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.12,99021,17910,1868,2918,4039,0607,1599,5408,6411,04,01896,80482,41092,47259,15467,69286,46294,1771,72,06532,1731,25,299 BUSINESS REVIEW (CONTD)
Oil and Gas Exploration & Production
MAJOR PRODUCTS AND BRANDS
OIL AND GAS ASSETS
The Company’s oil and gas
assets include KG D6,
Panna- Mukta, Tapti and two
CBM blocks. RIL also has
two joint ventures in North
American shale plays – Pioneer
Natural Resources and Chevron.
₹35,000
crore
Development plan
underway in the
KG D6 block
100%
Field uptime in KG D6
operations
24
Reliance Industries Limited | Integrated Annual Report 2018–19 VISION
Towards energy security for
the nation
MISSION
Our mission is to maximise stakeholders'
value by finding, producing and marketing
hydrocarbons and to provide sustainable
growth while catering to the needs of
customers, partners, employees and the
local communities in which we do business.
We will conduct our business in a manner
that protects the environment as well as
the health and safety of our employees,
contractors and the local communities in
which we do business.
MEGATRENDS
ILLUSTRATION
Deepwater Pipeline Installation
1
2
Energy Security within
jurisdiction
Meeting India’s energy
demands
Advantaged Oil
Short cycle time for
field development
STRENGTHS
Project Execution
Short duration from
discovery to extraction
Resilient Infrastructure
Strong offshore
capabilities in India
Safety
Paramount focus on safety
(zero accidents and 100%
compliance)
Partnerships
Partner of choice for
global majors
Effective use of thermal imaging
camera for real-time detection of
minor / major gas leaks
Action
Portable infrared thermographic cameras being
used which can operate in wavelengths as long as
14,000 nano metres to detect minor hydrocarbon
gas leaks as low as 0.35g/hr.
Scale of Impact: Undetected gas leaks at more than
20 locations were identified in the plant
and rectified.
Outcome
Enhanced workplace safety, and reduced
emissions and maintenance costs.
READ MORE ON PAGE 72
25
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BUSINESS REVIEW (CONTD)
Retail
Retail
MAJOR PRODUCTS AND BRANDS
STORE AND SERVICE CONCEPTS
Number of stores
opened over the last
two years
~ 10 a day
IN-STORE BRANDS
26
Presence in towns
and cities
6,600+
Reliance Industries Limited | Integrated Annual Report 2018–19 EXCLUSIVE PARTNERSHIPS
Reliance Retail
operates
10,415
stores
27
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BUSINESS REVIEW (CONTD)
Retail
VISION
To be the most admired and successful
organised retail company in India that
enhances the quality of life of every Indian
MISSION
• Provide millions of customers with unlimited choice,
outstanding value proposition, superior quality and
unmatched experience across the full spectrum of
products and services
• Serve the entire spectrum of Indian society i.e., from
households, kiranas and traders, to small and medium
enterprises and large corporations
• Reach the length and breadth of the country through
our physical and digital distribution platforms
• Enable the choice, opportunity and livelihood of our
supplier ecosystem consisting of producers, farmers,
artisans, craftsmen and manufacturers
• Generate direct and indirect employment opportunities
with skill transformation and talent development on an
unprecedented scale
MEGATRENDS
STRENGTHS
Integrating Value Chain
Connecting suppliers, small and large, to
B2B and B2C customers through a pan-India
ecosystem
Digitisation
Connecting physical and digital spaces, with
endless aisle kiosks and multiple payment
modes with real-time analytics support
Bridging Urban-Rural Divide
Bringing quality products at affordable
prices to smaller tier cities, meeting
demand gap and offering employment
READ MORE ON PAGE 80
1
2
3
28
Diversified Portfolio of
Stores across Various
Consumption baskets
Leadership in key
consumption basket
Adaptive / Responsive
Maintaining market
leadership
Serving the
Underserved Markets
Expanding at the rate
of 4 stores every day
for the last 5 years
Customer-focussed
Robust Ecosystem
Providing unlimited
choice, superior value
proposition, and
quality and unmatched
experience across all
retail stores
Partner of Choice
Largest portfolio of
international retail
brands in India
Multi-channel Strategy
Integrated
‘offline-online’
models
Reliance Industries Limited | Integrated Annual Report 2018–19 SOCIETAL VALUES (UN SDGs) ILLUSTRATION
Decent Work and
economic growth
Gender equality
Responsible consumption
and production
Action
Providing employment to people with
minimum education (10th or 12th standard),
giving them the opportunity to advance
their education, and providing extensive
functional and behavioural training
Scale of Impact: Reliance Retail currently
employs nearly 46,000 people with this
qualification.
Action
Specific focus on gender sensitisation
programmes for male staff, ensured high
levels of awareness on Prevention of Sexual
Harassment (POSH) at workplace, opened 6
Reliance SMART stores and 1 Reliance Digital
store run completely by women employees
Scale of Impact: As of March 31, 2019 22%
of Reliance Retail's pan-India workforce
comprises of women.
Action
Recycled plastic waste into objects
such as spectacles, park benches
and fishing nets, and partnered
with Tetra Pak to run a 'Go Green'
initiative.
(cid:24)(cid:29)(cid:28)(cid:31)(cid:31)
Scale of Impact: Integrating green
practices in day-to-day operations.
(cid:25)(cid:29)(cid:31)(cid:31)(cid:31)
Outcome
Balanced workplace with equal
opportunity at every level, inclusive
growth, career progression and economic
advancement of employees.
PERFORMANCE
Outcome
Equal opportunities to all individuals
and fairness in all employee-related
policies.
Outcome
Sustainable growth through
responsible business practices,
ensuring societal values.
(cid:27)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:26)(cid:29)(cid:28)(cid:31)(cid:31)
Revenue (` in crore)
EBIT (` in crore)
EBIT (%)
(11.0)
(11.0)
(11.1)
(8.7)
(2.8)
0.8
2.4
2.4
2.3
3.0
4.2
1,40,000
1,20,000
1,00,000
80,000
60,000
40,000
20,000
0
1,40,000
1,20,000
1,00,000
80,000
60,000
40,000
20,000
0
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
29
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
(cid:30)(cid:29)(cid:28)(cid:31)(cid:31)
(cid:31)
(cid:24)(cid:29)(cid:28)(cid:31)(cid:31)
(cid:25)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:26)(cid:29)(cid:28)(cid:31)(cid:31)
(cid:27)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:30)(cid:29)(cid:28)(cid:31)(cid:31)
(cid:31)
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.7842,064504417118(668)(307)(679)(503)14,55617,64021,07533,7654,5656,1027,63610,8451,30,56669,1985,546 BUSINESS REVIEW (CONTD)
Digital Services
MAJOR PRODUCTS AND BRANDS
Jio4GVoice
VoLTE and rich
communication on all
phones
MyJio
Manage your Jio
account
JioGigaFiber
JioGigaFiber
306.7
million
Subscribers for
Reliance Jio
30
JioNews
Complete package
for digital news and
magazines
JioSaavn
Music for you. Anytime,
Anywhere
JioHealthHub
Your digital health
vault
JioTV
Live and Catch Up TV on
the move
JioCinema
Entertainment at your
fingertips
Reliance Industries Limited | Integrated Annual Report 2018–19 Ranked
#1
In India by Adjusted
Gross Revenue
JioCloud
Store and access your
files from anywhere
JioNet
Gateway to India’s
largest Wi-Fi network
JioGigaFiber
JioGigaFiber
Embibe
Education platform
JioGST
GST service provider
JioChat
Free chat, SMS, voice
and video calls
JioMoney & Jio
Payments Bank
Experience cash-free living
JioSecurity
Protect your phone,
secure your data
JioSwitch
Secure file transfer
and share
31
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BUSINESS REVIEW (CONTD)
Digital Services
VISION
To connect everyone and everything,
everywhere – always at the highest
quality and the most affordable price.
Jio’s vision is to transform India with
the power of digital revolution
MISSION
• Connectivity for every Indian
• Superior customer experience
• Affordable data
• Best-in-class fixed-line solutions platforms
MEGATRENDS
STRENGTHS
Narrowing the Urban-Rural Divide
1
2
3
4
5
Mobility as First Screen for Internet
Low fixed-line penetration (<7% of households)
and improving mobile device ecosystem to
lead to >800 million mobile internet users
Smartphone Transition
Of the 850 million unique user base, only 400
million are smartphone users. This provides a
huge runway for growth.
Narrowband IoT*
Non-mobile IoT devices to reach >1.3 billion
in India by 2022, finding utility in home and
enterprise applications
Technology Platforms
Data network proliferation will lead to
platforms that will digitise customer lifecycle
across ecosystems
Narrowing the Urban-Rural Divide
Low rural Internet penetration at 25% vis-à-vis
93% for urban markets presents opportunity to
expand digital consumer services.
READ MORE ON PAGE 90
*Source: FICCI Media and Entertainment Report 2019
32
Coverage
Jio’s 4G coverage has allowed it to serve
underpenetrated areas and is approaching
its target of 99% population coverage
Capacity
Extensive infrastructure deployment
with multiple spectrum band gives Jio
unparalleled network capacity, low latency
and high speed
Distribution
Jio has set up an extensive distribution
network of over 7,600 Jio Stores (through
Reliance Retail) and over 1 million retail
touchpoints to serve its expanding
customer base
Reliance Industries Limited | Integrated Annual Report 2018–19 ILLUSTRATION
Providing prompt relief
during natural disasters
JioPhone empowering women
in rural India
Action
Resumed network services during Kerala
floods within 24 hours and helped BSNL
resume services in Munnar
Scale of Impact: Connectivity
services in Kerala
Action
Enable rural women to access the Internet
and share information on education,
health, family welfare, farming and
government schemes
Scale of Impact: Women in rural India
(e.g., the e-Sakhi programme run by the
Government of Rajasthan)
Outcome
Outcome
Helping people connect with
families by restoring network
Social and economic development
of women in rural India, thereby
accelerating India’s digital revolution
PERFORMANCE
Operating Revenue (` in crore)
EBIT (` in crore)
Jio Subscriber Base (In million)
138.6
160.1
186.6
215.3
252.3
280.1
306.7
14,000
11,200
8,400
5,600
2,800
0
14,000
11,200
8,400
5,600
2,800
0
Sep - 2017
Dec - 2017
Mar - 2018
Jun - 2018
Sep - 2018
Dec - 2018
Mar - 2019
Sep - 2017
Dec - 2017
Mar - 2018
Jun - 2018
Sep - 2018
Dec - 2018
Mar - 2019
(cid:24)(cid:25)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:24)(cid:24)(cid:29)(cid:30)(cid:31)(cid:31)
(cid:28)(cid:29)(cid:25)(cid:31)(cid:31)
(cid:27)(cid:29)(cid:26)(cid:31)(cid:31)
(cid:30)(cid:29)(cid:28)(cid:31)(cid:31)
(cid:31)
(cid:24)(cid:25)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:24)(cid:24)(cid:29)(cid:30)(cid:31)(cid:31)
(cid:28)(cid:29)(cid:25)(cid:31)(cid:31)
(cid:27)(cid:29)(cid:26)(cid:31)(cid:31)
(cid:30)(cid:29)(cid:28)(cid:31)(cid:31)
(cid:31)
33
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.2,3622,0421,4951,7151,44026110,94212,3027,2138,1368,4219,65313,6092,665 BUSINESS REVIEW (CONTD)
Media and Entertainment
MAJOR PRODUCTS AND BRANDS
DIGITAL ENTERTAINMENT
Touching hearts everywhere,
everytime, across devices
PUBLISHING BUSINESS
Class-leading specialised print
magazines
TV CHANNELS
Diverse content, impactful brands
Network18 boasts of 55 channels
in India spanning news and
entertainment, including 16
international channels
DIGITAL NEWS
Marquee properties that enlighten millions
FILMED ENTERTAINMENT
Fresh subjects and an enviable
success rate
34
DIGITAL COMMERCE
Pioneering, ubiquitous platforms
CONTENT ASSET
MONETISATION
Reliance Industries Limited | Integrated Annual Report 2018–19 VISION & MISSION
Network18 aims to be a channel-agnostic
provider of top-drawer content, across
genres, regions and languages. We aim to be
India’s top media house with unparalleled
reach, and touch the lives of Indians across
geographies and genres
MEGATRENDS
1
2
Vernacular Content
Consumption
Digital Delivery
and the OTT Wave
STRENGTHS
Market leader in multiple genres (Business News #1,
leading premium urban channels in both Hindi
general news and general entertainment, and Kids #1 –
dominates the English entertainment space).
'Network effect' and play on vernacular media
growth - Benefits of regional portfolio across News
(14) and Entertainment (8) channels.
Marquee digital properties such as MoneyControl
and VOOT provide content synergy and future
growth avenues.
(cid:28)(cid:31)
(cid:29)(cid:30)
(cid:29)(cid:31)
READ MORE ON PAGE 100
(cid:30)
(cid:31)
(cid:28)(cid:31)
(cid:29)(cid:30)
(cid:29)(cid:31)
(cid:30)
(cid:31)
35
PERFORMANCE
No. of domestic channels
Viewership share of overall TV (%)
100
75
50
25
0
100
75
50
25
0
2015-16
2016-17
2017-18
2018-19
2015-16
2016-17
2017-18
2018-19
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.13.413.412.911.955415052 RELIANCE FOUNDATION
Catalysing transformative change
Reliance Foundation was instituted with a vision to build a stronger and inclusive India. 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. With the aim of building better lives and improving
the livelihood of the people for a stronger and inclusive India, the Foundation addresses some of India's most
pressing development challenges.
RURAL TRANSFORMATION
Creating sustainable livelihood solutions, addressing poverty,
hunger and malnutrition
7.2+ million
Livelihoods
augmented since
inception
75%
Fisher folk reported positive
outcomes by following
information advisories
434
Water-secured
villages, since
inception
83%
Farmers reported
saving input cost on
agriculture
80%
Increase in daily vegetable
intake among children enrolled
in anganwadis under the
Nutrition Mission, Maharashtra
77%
Of farmers reported
enhancement in
income levels
73%
Families are food-secure with availability
of adequate quantity of food grains
throughout the year
HEALTH
Affordable solutions for healthcare through improved access,
awareness and hygienic behaviour
6+ million
Health consultations,
since inception
18,000+
Corneal transplants
for vision care, since
inception
1,700
Individuals from underprivileged
segments were provided with
sight and livelihood
63%
Of malnourished children showed
improved health
93%
Patients screened positive for
tuberculosis were cured with
routine treatment and follow-ups
EDUCATION
Access to quality education, training and skill enhancement
12,285
Dhirubhai Ambani
scholarships disbursed
14
Schools with 16,000
students enrolled
1,000+
Teachers awarded RF Teachers award
for their outstanding contribution
98%
Pass percentage of students in
Classes 10 and Class 12 in RF schools
36
Reliance Industries Limited | Integrated Annual Report 2018–19 SPORTS FOR DEVELOPMENT
Promoting sports amongst youth to facilitate their skills and
development
Sports programme marks its presence in additional 36 cities
(70 cities since inception)
5 million
Children reached through the sports
initiative (18 million since inception)
RF Jr. NBA
Scaled to 7,900 schools
across 34 cities
5.5+ million
Children, adolescents and youth
were reached out through Reliance
Foundation Youth Sports
19 young champs
from 10 states awarded
scholarships this year to develop
their football skills
DISASTER RESPONSE
Managing and responding to disasters
74,000+
Affected families were
supported in Kerala flood relief
During FY 2018-19, RF promptly
helped communities affected
by floods and cyclone in Andhra
Pradesh, Kerala, Gujarat,
Odisha, Uttar Pradesh and
Tamil Nadu
ARTS, CULTURE AND HERITAGE
Protection and promotion of India’s art, culture and heritage
Supported the annual concert
'Abbaji' organised by Ustad
Zakir Hussain as part of its arts
and culture initiative
37
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. RELIANCE IN OUR LIVES
Everytime. Everyday!
GOOD MORNING!
• Recron – Mattresses, pillows
and blankets
• Relwood – Superior wood
substitute for indoor and
outdoor furniture
GETTING TO WORK
• R|Elan™ A fabric that can be used across
apparel segments such as activewear, and
denim, ethnic and western wear, both
formals and casuals
• Only Vimal – Suitings, shirtings and
readymade garments
• Reliance Trends – A wide range of apparels,
handbags, footwear and accessories
• Reliance Footprint – Speciality stores
dealing in footwear, luggage, handbags and
accessories
MEALS
• Reliance Fresh – Fresh fruits and
vegetables, food, groceries and items of
daily use
• Reliance SMART – Fresh fruits and
vegetables, food, clothing, footwear,
electronics and general merchandise
• Reliance Gas – Domestic, commercial
and industrial fuel
ENTERTAINMENT
• Viacom18 Motion Pictures – For full-
length feature films within India
• Entertainment channels – Colors, MTV,
VH1, Comedy Central, History TV18, Sonic
and MTV Beats
• BookMyShow – Online ticket booking for
movies, plays, sporting events and shows
PARTIES AND CELEBRATIONS
• Reliance Jewels – Premium jewellery
chain offering a wide range of fine
jewellery across gold, silver, diamond
among others
• Project EVE – Speciality stores catering
to entire fashion and lifestyle needs of
women
BACK HOME
• JioTV – Live and Catch up TV on the move
• JioSaavn – Large library of songs across
various languages and genres accessible
anytime, anywhere
• JioCinema – Library of movies, TV shows,
music videos and content across 11
languages and genres on phone, tablet,
TV and website
38
Reliance Industries Limited | Integrated Annual Report 2018–19 GETTING UP TO SPEED
• Network18 – News content
through multiple channels in
multiple languages
• JioNews – Multiple daily
newspapers/magazines
from multiple Indian and
international cities
CONVENIENT COMMUTE
• Reliance Petroleum Retail –
DIGITISING WORK
• JioCloud – Store and access files from
Transportation fuel for daily commute
anywhere
• Qwikmart – Convenience stores for
shopping of beverages, snacks and gifts
on highways
• Reflex – Polymers and elastomers in tyres
and Automobiles
• JioSwitch – Easy-to-use data transfer
application for secure transfer and
sharing of a wide range of files
• JioMoney – Digitising everyday consumer
transactions – simple, smart and secure
payments
• Jio4GVoice – HD voice and video calls,
and SMS
THE EVENING BREAK
• Relpet – Packaging for bottled water,
LUNCH TIME
• Repol – Containers for carrying food and
UPDATING KNOWLEDGE
• Moneycontrol – Comprehensive financial
beverages, confectionary, food
products among others
beverages
• Relene – Containers and carrier bags for
• JioChat – Free chat, SMS, voice and
carrying food and beverages
video calls
information, and news and in-depth
analysis of various sectors, industries and
businesses.
• Forbes India – Magazine for financial/
business news and analysis
39
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. AWARDS AND ACCOLADES
Awarded Digital Icon of the Year
19th National Award for Excellent Energy-efficient Unit
LEADERSHIP
• Shri Mukesh D. Ambani is among '100
Most Influential People' as per TIME
magazine for 2019
• Shri Mukesh D. Ambani received the
'Digital Icon of the Year' Award at the
Drivers of Digital Awards 2018
• Shri Mukesh D. Ambani is among
the 'Top 100 Global Thinkers' for
accelerating a smartphone internet
revolution in the world's largest
democracy as per Foreign Policy
magazine
• Shri Mukesh D. Ambani ranked 24th in
QUALITY
•
'Quality Circle -Lakshya' from HDPE
Plant, 'Udaan' of QC department, and
'Prayas' from CCPP Plant was awarded
with the highest category 'Gold Award'
at the 6th Annual Convention on Quality
Concepts
'Quality Circle- Jazbaa' from QC
department was awarded with the
highest category 'Gold Award' at
International Convention on Quality
Control Circles (ICQCC 2018) at
Singapore
•
CAPITAL RESOURCES
•
•
'Best Syndicated Loan' and 'Issuer of the
Year – Corporate (South Asia)' by The
Asset
'Best ECA-backed Telecoms Finance
Deals of the Year' by Trade and Export
Finance (TXF) for its K-Sure supported
ECA financing of $825 million and
€150 million
•
IFR Asia – Issuer of the Year award
• Finance Asia – Issuer of the Year award
• The Asset Triple A – 'Best Trade Finance
Solution', 'Best Supply Chain Solution'
and 'Treasurer of the Year'
Fortune list of '50 Greatest Leaders in the
World'
• Shri Mukesh D. Ambani is India's top
ENERGY AND WATER CONSERVATION/
EFFICIENCY
• Won CII’s 'Excellent Energy-efficient
philanthropist, according to the Hurun
India Philanthropy List 2018, which is a
ranking of the most generous individuals
from India
HUMAN RESOURCES
• Received Tata Institute of Social
Sciences (TISS) Leap Vault CLO (Chief
Learning Officer) award in 2018 for 'Best
Leadership Development Programme'
• Ranked 10th position in the 'LinkedIn Top
Companies: Where India Wants to Work
Now'
• Ranked in the India's Top 25 'Best
Companies to Work For' in the Business
Today–People Strong Survey 2019
Unit' award at the '19th National Award
for Excellence in Energy Management
2018
• Won the 'Making India Energy Efficient'
award for the year 2018 at Future of
Energy Management Summit, Mumbai.
TECHNOLOGY, PATENTS, R&D AND
INNOVATION
• Received the 'North American
Maintenance Excellence Award 2018'
by the Foundation of Industrial
Maintenance Excellence, Florida, US
• Won Best Innovative Project Award for
'Acid Free Cooling Water Treatment
Program'
• Won the highest 'Gold Award' at
ICCQC - 18 at Singapore for case study
on 'Improving performance of 51/14
denier'.
• Won the "Shram Shree Award" from the
state of Gujarat for special contribution
to enhancing throughput of CP
HEALTH, SAFETY AND ENVIRONMENT
• Received the 'Safety Innovation Award
2018' from the Institution of Engineers
(India), Delhi State Centre
• Awarded 'The APEX India Afforestation
Excellence Award 2017' under Platinum
category
• Awarded 'Platinum Award' for
outstanding achievement in the field
of Environment Management in Textile
Sector at the 18th Annual Greentech
Environment Award 2018
• Awarded 'International Safety Award'
with 'Merit from British Safety council'
• Awarded 'Platinum Award' at Grow Care
India Safety Awards 2018
• Won the 'Annual Greentech Gold
Safety Award 2018' at the 17th Annual
Greentech Foundation, New Delhi
• Received 'HSE Award – Platinum
Category for the Year 2017-18'–the
highest among the three categories
(Platinum, Gold and Bronze) given by
the National Safety Council
40
Reliance Industries Limited | Integrated Annual Report 2018–19 Asia Sustainability Reporting Awards 2018
Retail Jeweller India Awards 2018
Annual Greentech Gold Safety Award 2018
CORPORATE SOCIAL RESPONSIBILITY
• Won the award from the Ministry of
Rural Housing and Information and
Broad Casting, Government of Andhra
Pradesh, on contribution made under
CSR activities in the East Godavari
District and vicinity areas of KG D6.
• Won CSR Award 2018-19 'Ek Kaam Desh
Ke Naam' for the initiative 'Women
Empowerment through Skilling:
Transforming human into human
resource'.
• Reliance Foundation won the 'Social
Contributors' award at Pitch Top 50
Brands
SUSTAINABILITY
• Won the 'Apex National Award for
Manufacturing Competitiveness' (NAMC)
2018 under the Gold category
• Received 'Sustainability Award' for the
Best Green Process in Petrochemical
Sector by FICCI
• Received 'Asia’s Best Community
Reporting Award' at Asia Sustainability
Reporting Awards
• Won the 'Best Sustainable Corporate of
the Year 2018' at the Sustainability 4.0
Awards by Frost and Sullivan and TERI
• Won the 'Sustainable Corporate of the
Year Award – 1st Runner-up' 2019 at the
Sustainability 4.0 awards by Frost and
Sullivan and TERI
• Won the 'CII-ITC Sustainability Awards
2018'
• Won the 'India Green Manufacturing
Challenge (IGMC) Gold Medal Award
2018' from International Research
Institute for Manufacturing, India
• Winner of 'Sustainability Category' at
the 5th Edition of Aditya Birla Group:
'Manufacturing Today: Reinventing The
Future' at Vadodara
• Reliance Foundation received 'Olive
Crown Press Corporate – Silver Award'
at the International Advertising
Association’s India Chapter 2019 for
creative excellence in communicating
sustainability for the second consecutive
year
RETAIL
• Reliance Fresh rated as India's 'Most
Trusted Grocery Brand' in the Brand
Trust Report
• Reliance SMART won 'Rapid Expansion
with SMART Hyper Model' award at
IMAGES South India Retail Awards 2018
• Reliance Digital awarded 'National
Retailer of the Year' by India Retail and
e-Retail Awards 2018
• Reliance Digital received 'Most Admired
Consumer Electronics Retailer of the
Year' at IMAGES Retail Awards 2018
• Reliance Digital received 'Best Use of
Social Media in Marketing' at National
Marketing Excellence Awards 2018
(Times Network)
• Reliance Digital received the following
awards for excellence at the ACEF Asian
Leadership Award 2018:
Gold for Grand Prix Award for the
'Most Admired Brand of the Year'
Silver for 'Excellence in Brand
Awareness'
• Project Eve was awarded the 'Most
Admired Retail Launch' of the year by
IMAGES Retail Awards
• Reliance Jewels won 'Innovative
Marketing Campaign of the Year 2018'
award at Gem and Jewellery Trade
Council of India (GJTCI) Awards
• Reliance Jewels won award for the TV
Campaign of the Year at the 14th FURA
Retail Jeweller India Awards 2018
• Petro Retail won the prestigious
Federation of Indian Petroleum Industry
(FIPI) award for Digitalisation Initiatives
in the Oil and Gas Sector – Company of
the Year 2017
• Petro Retail won 'Gold award' from
Brandon Hall, US, for 'Product Loss
Training' case study under the
category of 'Best Results of a Learning
Programme' for 2018
DIGITAL SERVICES
• Jio ranked No. 1 in the 'Fortune Change
the World 2018 Top10' list
• Jio won the 'Best Mobile Operator
Service for Consumers' award at the
Global Mobile GLOMO Awards 2018
• Jio TV app won the 'Best Mobile Video
Content' award at GLOMO Awards
• Jio was awarded the ‘Most Innovative
Company’ award by Economic Times
• Jio was awarded the ‘Most Innovative
Company - JioSaavn’ award by Fast
Company
• Jio was awarded the ‘Most Innovative
Company - Value-added Services’ award
by Aegis Graham Bell
• Jio earned the 17th spot on the global
list in American business magazine
Fast Company’s 50 Most Innovative
Companies list 2018
41
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. AWARDS AND ACCOLADES (CONTD)
Sustainability 4.0 Award by Frost & Sullivan and TERI
Golden Peacock Award
Sector' award at Global Marketing
Excellence
• Jio Cricket Play Along won the
'Marketing Excellence in Sports
Marketing' award at Global Marketing
Excellence
• Jio Interact was awarded the 'Brand
Excellence in Telecom Sector' at ABP
Brand Excellence in Marketing awards
• Jio Cricket Play Along won the award for
content marketing at ET Now Stars of
the Industry Awards
• Jio Phone won the 'Best New Brand,
Product and Service Launch' award at
ET Now Stars of the Industry Awards
• Jio KBC was awarded the 'Marketing
Campaign of the Year' award at ET Now
Stars of the Industry Awards
• Jio Interact won the award for Marketing
'Excellence in Telecom Sector' at ET Now
Stars of the Industry Awards
• Jio Cricket Play Along won the 'Best
Consumer Mobile Service' award at
Indian Digital Awards(IAMAI)
• Jio Cadbury’s Generosity Campaign won
the 'Best Brand Awareness Campaign'
using mobile award at Indian Digital
Awards (IAMAI)
• Jio Interact won the 'Best Use of Bot'
award at Indian Digital Awards (IAMAI)
• Jio Interact – 102 Not Out won the 'Best
Use of Native Advertising' at Indian
Digital Awards (IAMAI)
MEDIA
• CNBC TV18 and CNBC Awaaz were the
No. 1 in English and Hindi businesses,
respectively, in the news genre
• Nickelodeon is the No 1. Channel in the
kid’s category since August 2014
• CNBC Awaaz awarded 'Best Business
Channel on International Commodities
Coverage' by Commodity Participants
Association of India (CPAI) 2018
• CNBC Awaaz awarded 'Leader in Hindi
Business News' by IMWBuzz TV-Video
Summit and Awards 2018
• Talk show 'Bollywood Roundtables' won
'Best Talk Show 2018' at Asian Television
Awards
• Mr. Zakka Jacob won 'The Best News
Presenter' 2018 at Asian Television
Awards
• Abby Awards – Viacom18 won the title
of ‘Creative Company of the Year’ on the
back of its work for MTV
• Media 360 Awards 'Best Use of
Experiential Marketing' –
Dance Deewane (Viacom18)
• E4M Prime Time Awards – 'Best Program
Promotion Strategy' – Single Medium –
Bigg Boss 11 (Viacom18)
• Won 'The Disruptor Award' from Indian
Leadership Awards
• Jio was awarded 'India’s Most Influential
Brands by IPSOS'
• Jio KBC won the 'Best Mobile Game
Used for Marketing' Award at Indian
Digital Awards (IAMAI) 2018
• Jio won the 'AFAQS India's Buzziest
Brand 2018' award across India in all
categories
• Jio for Swachhata won award for
'Marketing Strategy – Social Connect' at
Maddies 2018
• Jio Cricket Play Along won award
for 'Channel/Media Strategy–Mobile
Applications' at Maddies 2018
• Hall of Fame won the 'Mobile Marketer
of the Year' 2018 award at Maddies 2018
• Jio Interact won awards for 'Brand
Campaign–Category Creation' and
'Innovative Use of Technology Sector' at
Indian Marketing Award 2018
• JioPhone won the 'Best Low-cost
Smartphone' award at Mobby’s
Awards 2018
• Jio Interact won the 'Best Use of Digital
Media in Marketing and Advertising'
Award at Mobby’s awards 2018
• Jio won the 'Disruptor of the Year',
'Digital Strategists' and 'Bottom of the
Pyramid' awards in Pitch Top 50 Brands
• Jio KBC won the 'Best Integrated
Branded Content' and 'Best Use of
Mobile Medium for Marketing' awards at
Indian Content Marketing Awards
• Jio Interact won the 'Marketing
Excellence in Telecom, Energy & Utility
42
Reliance Industries Limited | Integrated Annual Report 2018–19 COMPANY INFORMATION
BOARD OF DIRECTORS
COMMITTEES
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
REGISTRARS &
TRANSFER AGENTS
Karvy Fintech 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
Chairman and Managing
Director
Mukesh D. Ambani
Independent Directors
Mansingh L. Bhakta
Yogendra P. Trivedi
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Non Independent Director
Nita M. Ambani
Executive Directors
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
Chief Financial Officer
Alok Agarwal
Joint Chief Financial Officer
Srikanth Venkatachari
Auditors
D T S & Associates
S R B C & CO LLP
Group Company Secretary
and Chief Compliance
Officer
K. Sethuraman
Joint Company Secretary
and Compliance Officer
Savithri Parekh
Solicitors & Advocates
Kanga & Co.
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
Audit Committee
Yogendra P. Trivedi (Chairman)
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Stakeholders’ Relationship
Committee
Yogendra P. Trivedi (Chairman)
Arundhati Bhattacharya
Nikhil R. Meswani
Hital R. Meswani
Risk Management
Committee
Adil Zainulbhai (Chairman)
Dr. Shumeet Banerji
Hital R. Meswani
P. M. S. Prasad
Alok Agarwal
Srikanth Venkatachari
Finance Committee
Mukesh D. Ambani (Chairman)
Nikhil R. Meswani
Hital R. Meswani
Human Resources,
Nomination and
Remuneration Committee
Adil Zainulbhai (Chairman)
Yogendra P. Trivedi
Dr. Raghunath A. Mashelkar
Raminder Singh Gujral
Dr. Shumeet Banerji
Corporate Social
Responsibility and
Governance Committee
Yogendra P. Trivedi (Chairman)
Dr. Raghunath A. Mashelkar
Dr. Shumeet Banerji
Nikhil R. Meswani
Health, Safety and
Environment Committee
Hital R. Meswani (Chairman)
Dr. Raghunath A. Mashelkar
Arundhati Bhattacharya
P. M. S. Prasad
Pawan Kumar Kapil
MAJOR PLANT
LOCATIONS
Dahej Manufacturing
Division
P. O. Dahej,
Taluka: Vagra,
District Bharuch - 392 130,
Gujarat, India
Hazira Manufacturing
Division
Village Mora,
P. O. Bhatha, Surat-Hazira Road,
Surat - 394 510,
Gujarat, India
Jamnagar
Village Meghpar/Padana, Taluka
Lalpur, Jamnagar - 361 280,
Gujarat, India
Jamnagar SEZ Unit Village
Meghpar/Padana, Taluka
Lalpur, Jamnagar - 361 280,
Gujarat, India
KG D6 Onshore Terminal
Village Gadimoga,
Tallarevu Mandal,
East Godavari District – 533 463,
Andhra Pradesh, India
Nagothane Manufacturing
Division
P. O. Petrochemicals Township,
Nagothane - 402 125, Roha
Taluka, District Raigad,
Maharashtra, India
Patalganga Manufacturing
Division
B-1 to B-5 & A3, MIDC Industrial
Area, P. O. Rasayani, Patalganga
– 410 220, District Raigad,
Maharashtra, India
Vadodara Manufacturing
Division
P. O. Petrochemicals,
Vadodara - 391 346,
Gujarat, India
42nd Annual General Meeting (Post-IPO) on August 12, 2019 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
43
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
PRODUCT FLOW CHART
A diverse set of products
and end applications
NATURAL
GAS
BUTYL RUBBER
Jamnagar Expansion Project
Refinery C4
HPIB
Butyl Rubber
Halobutyl Rubber
Butene-1
Halogen
Light ends
Refinery C4
Offgas
Propane
Naphtha
LPG
Gasoline
Ethane/Propane
Ethane
Ethylene
Propylene
PP
EDC
HDPE/LLDPE
LDPE
EO
C4's
MTBE
Butene-1
Butadiene
C6+
Benzene
Toluene
Xylenes
VCM
PVC
DEG/TEG
Styrene
SBR
PBR
LAB
Orthoxylene
Paraxylene
Salt
Caustic
Chlorine
MEG
PET
PTA
Polyester Chips
Normal
Paraffin
Kerosene
Acetic Acid
Filament
FDY
POY
PTY
Texturised /
Twisted Dyed Yarn
Staple
PSF
PFF
PET Bottles
(Recycled)
Spun Yarn
Non-woven
Applications
Filler Products/
Non-wovens/
Technical Textiles
Fabrics
Apparel
Wool Viscose
Silk Linen
Purchased Raw Materials
Partly Purchased Raw Materials
Existing Products
New Products
44
Reliance Industries Limited | Integrated Annual Report 2018–19 CRUDE
OIL
Middle distillate
Solids/fuels
Diesel
Jet/Kero
Fuel Oil / CBFS
Petcoke
Sulphur
PETCOKE GASIFICATION
Jamnagar Expansion Project
Pet Coke
Syngas
Sulphur
Hydrogen
SNG
CBFS
DEG
EDC
EO
FDY
HDPE
HPIB
LAB
LDPE
LLDPE
LPG
MEG
MTBE
PBR
PET
PFF
POY
PP
PSF
PTA
PTY
PVC
SBR
SNG
TEG
VCM
Carbon Black feedstock
Di-Ethylene Glycol
Ethylene Di-Chloride
Ethylene Oxide
Fully Drawn Yarn
High Density Polyethylene
High Purity Isobutylene
Linear Alkyl Benzene
Low Density Polyethylene
Linear Low-density Polyethylene
Liquefied Petroleum Gas
Mono-Ethylene Glycol
Methyl Tertiary Butyl Ether
Poly Butadiene Rubber
Polyethylene Terephthalate
Polyester Filament Fibre
Partially Oriented Yarn
Polypropylene
Polyester Staple Fibre
Purified Terephthalic Acid
Polyester Textured Yarn
PolyVinyl Chloride
Styrene Butadiene Rubber
Synthetic Natural Gas
Tri-Ethylene Glycol
Vinyl Chloride monomer
RELIANCE COMPOSITE SOLUTIONS
Glass rowing
(procured)
Glass Fibre
Multiple raw materials
PTA, EO, Styrene, etc.
(captive / procured)
Resin
(Polyester / Epoxy / Phenolic)
Pultrusion
Filament
Winding
Mass Transport
Unit
Centrifugal
Casting
Sheet Molding
Wind Mill Unit
General Molding
Product plants
End use applications
45
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. FINANCIAL HIGHLIGHTS
RIL Standalone
US $
million
FY 2018-19 FY 2017-18 FY 2016-17 FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13 FY 2011-12 FY 2010-11 FY 2009-10
Value of Sales & Services
(Revenue)
57,984
4,00,986
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
Total Income
57,020
3,94,323
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
(₹ in crore)
Earnings Before
Depreciation, Finance Cost
and Tax Expenses(EBDIT)
Depreciation and
Amortisation
Profit For the Year
Equity Dividend %
Dividend Payout
Equity Share Capital
Reserves and Surplus
Net Worth
Gross Fixed Assets
Net Fixed Assets
9,786
67,676
59,961
51,965
47,168
40,323
39,813
38,785
39,811
41,178
33,041
1,527
10,558
9,580
8,465
8,590
8,488
8,789
9,465
11,394
13,608
10,497
5,085
35,163
33,612
31,425
27,384
22,719
21,984
21,003
20,040
20,286
16,236
-
514
917
57,694
49,762
68,916
45,513
60
110
3,554
6,339
3,255
6,335
-
-
3,251
105
3,095
3,240
100
2,944
3,236
95
2,793
3,232
90
2,643
3,229
85
2,531
3,271
80
2,385
3,273
70
2,084
3,270
3,98,983
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
3,44,128
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
4,76,591
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
3,14,745
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
Total Assets
1,12,175
7,75,745
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
Market Capitalisation
1,24,936
8,63,996
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
Number of Employees
Contribution to National
Exchequer
Key Indicators
Earnings Per Share - (`)
[excluding Exceptional item]
Turnover Per Share - (`)
Book Value Per Share - (`)
Debt : Equity Ratio
EBDIT / Gross Turnover %
Net Profit Margin %
RONW % **
ROCE % **
28,967
29,533
24,167
24,121
24,930
23,853
23,519
23,166
22,661
23,365
9,774
67,589
56,997
51,399
43,117
33,322
31,374
28,950
28,197
28,719
17,972
US $ FY 2018-19 FY 2017-18 FY 2016-17 FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13 FY 2011-12 FY 2010-11 FY 2009-10
0.80
9.15
9.25
55.5*
53.1*
96.9
84.6
70.2
68.0
64.8
61.2
62.0
49.7
632.6*
542.9*
0.40:1
16.9
8.8
13.7
24.9
497.8*
496.7*
0.37:1
19.0
10.7
15.5
28.7
817.2
889.0
0.37:1
19.6
11.9
17.1
25.4
775.3
784.4
0.42:1
18.8
10.9
15.1
17.2
1,053.3
1,241.7
1,149.5
1,037.8
668.0
0.45:1
11.8
6.7
13.4
12.7
609.8
0.45:1
9.9
5.5
12.9
11.5
557.5
0.40:1
10.5
5.7
12.8
11.2
507.3
0.41:1
11.7
5.9
13.4
11.6
790.5
463.2
0.44:1
15.9
7.8
15.5
13.2
612.9
419.5
0.46:1
16.5
8.1
16.4
13.9
In this Integrated Annual Report, $ denotes US$, unless otherwise stated
US$1 = `69.155 (Exchange rate as on 31.03.2019)
* Adjusted for issue of Bonus Shares in 2017-18 in the ratio of 1:1
** Adjusted for CWIP and revaluation
46
Reliance Industries Limited | Integrated Annual Report 2018–19 MANAGEMENT DISCUSSION AND ANALYSIS
Corporate
Overview
2 ‒ 40
Management
Review
41 ‒ 179
Governance
180 ‒ 285
Financial
Statements
286 ‒ 425
Notice
426 ‒ 450
INSIDE THIS SECTION
YEARLY REVIEW
48 OVERVIEW
Macro environment – global and
domestic
49 HIGHLIGHTS AND KEY EVENTS
Brief overview of business
performance and other events
during the year
52 FINANCIAL PERFORMANCE
AND REVIEW
Financial information (consolidated
and standalone) and discussion on key
parameters
54 BUSINESS PERFORMANCE
Analysis and description of all major
business segments of Reliance
covering strategic advantages and
competitive strengths. The discussion
structure covers the environment
the business operates in and how
Reliance’s business model and
operational excellence helped achieve
a strong overall financial performance.
In addition, growth plans and strategy
is elaborated for each business
segment
Refining and
Marketing
PAGE 54
Retail
PAGE 80
Petrochemicals
PAGE 62
Digital Services
PAGE 90
Oil and Gas
Exploration &
Production
PAGE 72
Media and
Entertainment
PAGE 100
108 LIQUIDITY AND CAPITAL RESOURCES
Insights including Reliance’s financing strategy, resource
raising, capital and risk management framework
SUSTAINABLE FUTURE & GROWING RESPONSIBILITY
110 SUSTAINABLE GROWTH AT
RELIANCE – THE INTEGRATED
APPROACH
Analysis and disclosure of Reliance’s
approach towards sustainable and
responsible growth through the lens
of International Integrated reporting
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
ability to create value over time - short,
medium and long-term
110 Strategic Framework
110 The Integrated Approach
Natural Capital and Climate Change
PAGE 112
158 Reliance's Sustainability
Reporting Journey
162 RISK AND GOVERNANCE
Human Capital and People Connect
PAGE 120
169 GLOSSARY
Manufactured Capital and
Product Stewardship
PAGE 132
Intellectual Capital and Innovation
PAGE 140
Financial Capital and Credit Rating
PAGE 148
Social and Relationship Capital
PAGE 150
47
Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
MANAGEMENT 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.
48
Overview
GLOBAL
Global economic growth remained healthy
at 3.6% in CY 2018, as against 3.8% in
CY 2017, impacted by weaker performance
in the European Union and China. This
was driven by a boost in spending due to
tax cuts by the United States, which grew
at 2.9%, equalling its decade-high growth
achieved in 2015. Global trade growth was
robust in the first half of 2018, as oil prices
rallied due to the impending re-imposition
of sanctions on Iran by the United
States along with continuing declines in
production in Venezuela. Trade tensions
and imposition of tariffs saw front loading
of imports in 2018.
Global trade weakened towards the end
of 2018 partly due to the impact of tariff
increases in the United States and China
and higher energy prices. The global trade
slowdown was led by a sharp deceleration
in import demand in emerging markets.
Given relatively weaker growth outlook,
China is implementing a stimulus package
and the United States Fed has indicated a
pause in the monetary policy tightening
cycle. These policy support measures could
potentially help offset growth weakness in
the European Union, and be supportive for
global demand and commodity prices in
the near term.
Higher oil prices had an impact on demand
across the hydrocarbon chain, with global
oil demand growth slowing to
1.2 mbpd in 2018 from 1.5 mbpd in 2017.
Key petrochemical feedstock Ethylene
demand growth in 2018 also slowed to
3% y-o-y v/s 5.5% growth in the previous
year. Volatility in feedstock prices, muted
demand and incremental supply from new
capacities led to a challenging environment
for businesses in the energy chain.
INDIA
Indian economy remained the fastest
growing major economy in the world in CY
2018. In FY 2018-19, the estimated Gross
Domestic Product growth rate is 6.8%,
driven by strong private consumption
growth at 8.1%.
The economy continued to witness an
increase in investments, with Gross Fixed
Capital Formation growth at a six-year-
high of 10%. Healthy industrial activity
continued, and services indicators
sustained positive trends with services
credit, air traffic growth, and commercial
vehicle sales clocking double digit growth.
Services exports growth at 17%, is at
a seven-year-high. With continuing
policy initiatives, India moved to the 77th
rank from 100th, in terms of ease of
doing business.
For FY 2018-19, India’s oil demand grew
at about 3% y-o-y with consumption-led
demand growth in gasoline (+8.1%), gasoil
(+3.0%) and jet fuel (+9.1%). The demand
was driven by robust growth in commercial
vehicle sales and strong air traffic growth
during the year. On the rural side, tractor
sales and three-wheeler sales declined
from the highs of FY 2017-18, but continued
to grow in double digits. Domestic demand
growth for petrochemical products was
healthy with both polymer and polyester
demand growing at 7.0% y-o-y.
India continues to embrace the digital
life. Reliance Jio has propelled India to
become the largest mobile data consuming
economy in the world. With ubiquitous
and reliable data services, data networks
are increasingly being used for media
and entertainment, education, market
information and for transactions among
other use-cases. Adoption of digital
transactions witnessed exponential growth.
UPI payments grew from 0.7% of GDP in
FY 2017-18 to 4.7% in FY 2018-19, while
credit card growth averaged a strong 32%
y-o-y in FY 2018-19.
Personal consumption trends remain
strong with personal credit at a
healthy 18% y-o-y, reflective of the
strength in India’s consumption cycle.
Reliance Retail continues to benefit from
strong demand growth across consumer
staples and discretionary goods and its
ability to deliver a superior customer
experience and value proposition.
Reliance Industries Limited | Integrated Annual Report 2018–19 Highlights and Key Events
FY 2018-19 marked the coming of age of
Reliance’s consumer businesses. From a
mere 2% EBITDA contribution in
FY 2015-16, consumer businesses now
account for 24.6% of RIL’s consolidated
EBITDA. During the year, RIL’s segment
EBITDA grew by 23% to `87,640 crore, led
by record earnings from petrochemicals,
digital services and retail businesses.
Petrochemical business achieved record
EBITDA of `37,645 crore, up 45.6% y-o-y.
This was led by record production volume
of 37.7 MMT and a strong polyester chain
margin environment. Petrochemical
earnings demonstrated the earnings
power of the new plants commissioned
over the last investment cycle, unmatched
integration and feedstock flexibility.
Refining business was impacted by weak
light distillate cracks and volatile crude
price environment. During the year, all
units of the Gasification complex were
started safely and are currently under
stabilisation.
Reliance Jio continues to add subscribers
at a rate unprecedented in the telecom
or technology world. With 306.7 million
mobile data subscribers, Jio has been the
key catalyst in the creation of a broadband
data market in India and is now ranked #1
among mobile telecom operators in the
country, by Adjusted Gross Revenue (AGR).
Another key pillar of growth during the year
was the organised retail business, which
crossed the `1,00,000 crore milestone and
achieved record EBITDA of `6,201 crore.
Reliance Retail continued accelerated
expansion of its nation-wide footprint and
operationalised 2,829 stores during the
year, crossing the 10,000 stores milestone.
REFINING & MARKETING – WEAK
LIGHT DISTILLATE CRACKS LEAD
DOWN MARGINS
During the year, benchmark Brent oil prices
were up 22% due to geo-political tensions,
supply disruptions from Venezuela, Iran
and Libya as well as OPEC+ production
cuts. Demand growth was impacted by the
high pump level prices in the US and other
economies, along with slower growth in
the Chinese economy. Global oil demand
growth slowed down to 1.2 mbpd, leading
to supply-demand mismatch in products
like gasoline resulting in significant margin
erosion.
RIL’s gross refining margins declined to
US$9.2/bbl led by weak light distillate
cracks, which was only partially offset
by resilient middle distillate cracks.
With 306.7 million mobile data
subscribers, Reliance Jio has
propelled India to become the largest
mobile data consuming market
in the world.
Reliance Retail crossed the milestone
of turnover of `1,00,000 crore during
FY 2018-19.
LLDPE facility at Refinery Off–Gas Cracker (ROGC) complex, Jamnagar
49
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Operational excellence and flexibility
helped Reliance maintain a significant
US$4.3/bbl premium over the regional
benchmark – Singapore Refining Margins.
The resilient performance by Reliance’s
refining business was supported by
proactive crude sourcing, optimising of
product yields and robust risk management
in a challenging environment.
PETROCHEMICALS – RESILIENT
BUSINESS MODEL SHINING
THROUGH
Petrochemicals business delivered its
best ever performance, with EBITDA
contribution of `37,645 crore, up 45.6%
y-o-y. Petrochemical production was also at
a record high of 37.7 MMT, up 16% y-o-y.
The strong results were achieved in an
environment of declining utilisation rates
in key product chains with new supply
ramp-up. This demonstrates the resilience
of the Reliance business model based on
deep inter-linkages between refining and
petrochemical chains, feedstock flexibility
and the wide product portfolio. While
polymer chain margins were impacted by
new supplies out of the US Ethane based
crackers, polyester chain profitability
continued to be robust led by a strong PTA
and PX margins.
With the commencement of ethane
cracking at Nagothane, all the key
components of Reliance’s petrochemical
investment cycle are now fully contributing
to earnings.
OIL AND GAS EXPLORATION &
PRODUCTION – NEW PROJECTS TO
START CONTRIBUTING FROM THE
NEXT FISCAL YEAR
Reliance is undertaking development
of three ultra-deep / deepwater, High
Pressure High Temperature (HPHT)
R-Cluster, Satellite- Cluster and D55 (MJ)
fields. First gas from R-Cluster is expected
by mid-2020 followed by Satellite Cluster
and MJ fields over the next two years. The
new development will leverage Reliance’s
partnership with BP, existing infrastructure
in the Krishna-Godavari Basin and
downturn in the capital equipment and
service provider market.
50
RELIANCE RETAIL –
GROWTH ACROSS ALL KEY
CONSUMPTION BASKETS
Reliance Retail achieved record turnover of
`1,30,566 crore, up 88.7% y-o-y. Turnover
growth was driven by rapid store expansion
and robust growth in same-store-sales.
Jio is aiming to provide global standard
wireline infrastructure and services in India
through its FTTH and Enterprise offerings.
To accelerate this rollout, RIL has made
strategic investments in Hathway
Cable and Datacom Limited and DEN
Networks Limited.
Reliance Retail achieved its highest ever
EBITDA of `6,201 crore, up 145% y-o-y.
The strong operating performance was
driven by 100 bps improvement in EBITDA
margin to 4.7%.
Jio also continues to execute on its plans
of building a digital ecosystem spanning
across media and entertainment,
commerce, education, healthcare and
agriculture.
MEDIA – STRENGTHENING
OFFERING AHEAD OF EVOLVING
MARKET TRENDS
Reliance is committed to offering
differentiated and relevant media
content for the Indian market as part of
its digital services bouquet. As part of
this commitment, Reliance is investing in
creation of original content relevant for
the evolving trends in media consumption,
to be delivered in a pipe-and-platform-
agnostic manner to India’s diverse
populace. Through owned content-engines
and symbiotic partnerships, Reliance
is building an extensive media content
library which will cater to all segments of
the audience, and dovetail with its wide
delivery platforms.
Reliance’s flagship media company
Network18 continued on its growth
trajectory, and invested in key areas to
fill whitespaces or fortify its competitive
position. Impetus on identified growth
areas of vernacular content and digital
delivery continued during the year, and the
strength and reach of multiple powerful
brands was extended across regions and
mediums. Growing ad-spends in regional
channels (news, led by regional elections
and continued rise of viewership share;
and entertainment, driven by rising
consumption and value-perception) was
a consistent theme for the TV channel
portfolio as well as Digital properties.
Continuing strong growth momentum,
Reliance Retail has achieved revenue CAGR
of 55% and EBITDA CAGR of 76% over the
last 5 years.
Reliance Retail operated 10,415 retail stores
in over 6,600 towns and cities covering
an area of 22.0 million sq. ft. as of March
2019. A record footfall of over 500 million
was received during the year, a growth of
44% y-o-y. Reliance Retail is now working
on plans to launch a differentiated New
Commerce platform, which will enable
millions of small merchants across the
country to compete in a digital age.
DIGITAL SERVICES – STRONG
TRACTION IN SUBSCRIBER
ADDITION AND USER ENGAGEMENT
Jio continued its robust growth momentum
during FY 2018-19. Digital Services business
revenue grew by 94.5% to `46,506 crore
and EBIT grew by 176.7% to `8,784 crore.
This was driven by strong adoption of Jio
services, reflected in strong subscriber
addition and usage metrics on data and
voice. Reliance Jio added 120.1 million
subscribers during the year, taking total
subscriber base to 306.7 million.
Jio is now India’s largest mobile telecom
operator ranked by Adjusted Gross Revenue
(AGR). Jio leads the Industry in terms of
Average Revenue Per User (ARPU) (`126.2/
month), with healthy average voice
consumption (823 minutes per user per
month) and average data consumption
(10.9 GB per user per month). Total data
consumption on a monthly basis exceeds
3 Exabytes in March 2019. Jio has built a
video-ready all IP-network as evidenced by
video data consumption on the network of
over 500 crore hours per month.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 CORPORATE STEWARDSHIP
Reliance is committed towards promoting
a balanced economic growth and
establishing an inclusive and sustainable
growth for all.
During FY 2018-19, Reliance contributed
`1,16,251 crore to the national exchequer
and `904 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
touched the lives of 26 million Indians since
inception.
The management at RIL follows an
integrated thinking approach which leads
up to six capital approach and helps in
ensuring a sustainable future. Different
businesses in Reliance foster physical,
digital and biological innovations, thus,
exhibiting readiness for future megatrends
and empowering the fourth industrial
revolution.
DIGITAL PLATFORMS
During the year, Reliance initiated platform
driven organisation processes
to tap significant potential for its
businesses to improve efficiency and
facilitate informed and agile decision
making process.
REAL ESTATE DEVELOPMENTS
NMSEZ PROJECT
RIL entered into a Memorandum of
Understanding (MoU) with the Government
of Maharashtra to develop a Global
Economic Digital & Services Hub with
global partnerships. RIL through its wholly
owned subsidiary has entered into an MoU
with NMSEZ to sub-lease land of about
4,000 acres along with the associated
development rights. The Project will usher
the Industry 4.0 Revolution in Maharashtra
and will induce significant Industrial
growth, not only by offering world class
Infrastructure but also by partnering with
the best of global technology companies
in the areas of Innovation and Learning,
Research & Development, Technological
Advancement and building efficient
Manufacturing and Service capabilities.
INDIAN FILM COMBINE
RIL through its wholly-owned subsidiary
has acquired majority stake in Indian Film
Combine, which is building a Drive-in
Theatre, Hotel, Retail Mall and Clubhouse at
Bandra Kurla Complex (BKC) in Mumbai.
JIO WORLD CENTRE
The Company is also constructing a state-
of-the-art, world-class Convention Centre,
Performing art Theatre, Retail Mall, Office
space and Clubhouse at Bandra Kurla
Complex (BKC), Mumbai.
Both these projects are aimed at
making BKC the most attractive Retail,
Entertainment and Cultural destination
of Mumbai city along with a much needed
world-class Convention Centre.
Reliance Retail has achieved revenue
CAGR of 55% and EBITDA CAGR of 76%
over the last 5 years.
The resilient performance by
Reliance’s refining business was
supported by proactive crude
sourcing, optimising of product yields
and robust risk management in a
challenging environment.
Jio leads the Industry in terms of
ARPU (`126.2/month), average voice
consumption (823 minutes per user per
month) and average data consumption
(10.9 GB per user per month).
51
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Financial Performance and Review
Alok Agarwal
Srikanth Venkatachari
The year was characterised
by volatile macro-economic
environment. Adding to uncertainty
were higher oil prices in the first
half of the year and increasing
geo-political tensions through the
year. Reliance achieved its best ever
performance in this environment
with record contribution from
petrochemicals, retail and digital
services businesses.
Robust operating performance for
the year underscored the strength
of the petrochemicals business that
we have reinforced over the last
investment cycle. Furthermore,
our consumer businesses continue
to scale new heights with industry
leading metrics. The scalability
of retail and digital services
business platforms has created
unprecedented value for all
stakeholders.
At Reliance, we continue to
maintain strong balance sheet with
investment grade ratings.
Our scale of energy business
operations and growth catalyst
in consumer businesses will help
deliver superior and reliable returns
over the long term.
52
FINANCIAL INFORMATION – CONSOLIDATED AND STANDALONE
Particulars
Consolidated
Standalone
FY 2018-19
FY 2017-18
FY 2018-19
FY 2017-18
` in
crore
US$
in billion
` in
crore
` in
crore
US$
in billion
` in
crore
Value of Sales and Services
(Revenue)
PBDIT
Cash Profit
Segment EBIT
Net Profit
Cash and Marketable
Securities
Tangible and Intangible Assets
(Excluding Goodwill)
Gross Debt
US$1 = `69.155 (Exchange rate as on 31.03.2019)
6,22,809
92,656
64,478
66,222
39,588
1,33,027
5,65,840
2,87,505
90.1
4,30,731
4,00,986
58.0
3,15,357
13.4
9.3
9.6
5.7
73,097*
54,947*
51,299*
34,988*
67,676
48,485
50,771
35,163
9.8
7.0
7.3
5.1
59,961
46,352
45,121
33,612
19.2
78,063
1,12,155
16.2
67,566
81.8
5,85,094
3,14,745
45.5
3,00,447
41.6
2,18,763
1,61,720
23.4
1,16,881
*Excludes exceptional item of `1,087 crore representing profit from divestment of stake in Gulf Africa Petroleum Corporation
REVENUE
Reliance achieved consolidated revenue
of `6,22,809 crore (US$90.1 billion),
an increase of 44.6%, as compared to
`4,30,731 crore in the previous year.
Increase in revenue was primarily
on account of volume increase with
stabilisation of petrochemicals projects
and oil price related increase in realisations
in the refining and petrochemical products.
The higher volumes in petrochemicals
business are on account of first full year of
operations of new petrochemical facilities.
Reliance’s consolidated revenue was also
boosted by robust growth in retail and
digital services business, which recorded
an increase of 88.7% and 94.5% in revenue,
respectively as compared to the
previous year.
PROFIT
Volume growth in petrochemicals and
rapidly increasing contribution from
consumer businesses led to significant
rise in operating profit for the year.
Operating Profit before other income and
depreciation increased by 30.8% on a y-o-y
basis to `83,918 crore (US$12.1 billion) as
compared to `64,176 crore in the previous
year. Profit after tax before exceptional
item was higher by 13.1% at `39,588 crore
(US$5.7 billion) as against `34,988 crore in
the previous year. Relatively lower growth
in profit after tax is mainly due to higher
interest charges and depreciation due to
stabilisation of projects.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 SEGMENT REVIEW
• Refining and Marketing – Revenue
(including inter segment transfers)
increased by 28.7% y-o-y to `3,93,988
crore (US$57 billion) primarily on
account of higher crude prices during
the year. Segment EBIT decreased by
19.8% to `19,868 crore (US$2.9 billion),
impacted by significantly higher crude
prices, weak product cracks, lower
light-heavy differential and unplanned
shutdown of Fluid Catalytic Cracking
(FCC) Unit. GRM for FY 2018-19 stood at
US$9.2/bbl, outperforming Singapore
complex margins by US$4.3/bbl.
• Petrochemicals – Revenue (including
inter segment transfers) increased
by 37.3% y-o-y to `1,72,065 crore
(US$24.9 billion), primarily due to
higher prices and volumes, which
reflected full benefits of ROGC and
Paraxylene capacity expansion projects.
Petrochemicals segment EBIT increased
sharply by 51.9% to its highest ever level
of `32,173 crore (US$4.7 billion).
• Oil and Gas – Revenues decreased by
3.8% y-o-y to `5,005 crore. Volumes from
domestic upstream fields and US shale
were lower on account of natural decline
and slowdown in development activity.
Segment EBIT was at `(1,379) crore as
against `(1,536) crore in the previous
year. For the year, domestic production
(RIL share) was at 58.9 Bcfe, down
25.4% y-o-y and in US Shale (RIL share)
business was 94.5 Bcfe, down 32.4%
y-o-y basis.
• Organised Retail – Revenues grew by
88.7% y-o-y to ₹ 1,30,566 crore. Business
PBDIT for FY 2018-19 grew by 145.2%
y-o-y to ₹ 6,201 crore. EBITDA margins
improved 100 bps to 4.7% boosting
operating profitability. Reliance Retail
further consolidated its leadership
position and is India’s largest, most
profitable and fastest growing retailer.
• Digital Services – The business recorded
revenues of `46,506 crore, with
year-end subscribers base at 306.7
million. Reliance Jio reported strong
financial performance for the year.
Segment EBIT was at `8,784 crore for
the year, with EBIT margin of 18.9% as
against 13.3% in previous year.
OTHER FINANCIAL HIGHLIGHTS
Other Income before exceptional item
was lower at `8,635 crore (US$1.2 billion)
as against `8,862 crore in the previous
year, primarily on account of adverse yield
movement.
Finance Cost was at `16,495 crore
(US$2.4 billion) as against `8,052 crore
in the previous year. The increase was
primarily on account of commencement
of digital services business, petrochemical
projects at Jamnagar and higher loan
balances.
Depreciation (including depletion and
amortisation) was higher by 25.3% to
`20,934 crore (US$3.0 billion) as compared
to `16,706 crore in the previous year,
primarily on account of commencement
of wireless service business in Reliance
Jio. Higher depreciation also reflected
the capitalisation of new projects in the
petrochemicals business.
Basic Earnings Per Share (EPS) for the
year ended March 31, 2019 was at `66.8
as against `60.9 in previous year.
The Board of Directors of the Company
has recommended dividend of `6.5/- per
fully paid up equity share of `10/- each,
aggregating `4,641 crore (US$671 million),
including dividend distribution tax.
Reliance’s fixed assets (excluding
goodwill) stood at `5,65,840 crore
(US$81.8 billion) as on March 31, 2019. This
includes RIL Standalone's fixed assets of
`3,14,745 crore and balance of `2,51,095
crore in its subsidiaries mainly
Reliance Jio, Reliance Holding USA and
Reliance Retail.
Capital Expenditure for the year ended
March 31, 2019 was `1,32,445 crore
(US$19.2 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.
Reliance’s Gross Debt was at `2,87,505
crore (US$41.6 billion). This includes
standalone gross debt of `1,61,720 crore
and balance in key subsidiaries, including
Reliance Jio (`67,018 crore), Reliance
Holding USA (`34,848 crore), Reliance
Retail Group (`12,832 crore), Independent
Media Trust Group (`3,045 crore),
Hathway Cable and Datacom Limited
(`1,973 crore), Reliance Gas Pipelines
Limited (`1,379 crore) and Recron Malaysia
(`1,170 crore).
Cash and Marketable Securities were
at `1,33,027 crore (US$19.2 billion)
resulting in net debt at `1,54,478 crore
(US$22.3 billion).
RIL’s standalone Revenue from Operations
for FY 2018-19 was `4,00,986 crore (US$58
billion), an increase of 27.2% on y-o-y
basis. Profit after tax was at `35,163 crore
(US$5.1 billion) an increase of 4.6% against
`33,612 crore in the previous year. Basic
EPS on standalone basis for the year was
`55.5 as against `53.1 in the previous year.
Reliance achieved a consolidated
revenue of `6,22,809 crore, growth of
44.6% from previous year.
Standalone revenue from operations
at `4,00,986 crore, growth of 27.2%
y-o-y.
53
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Refining and Marketing (R&M)
Hital R. Meswani
C Borar
Srinivas Tuttagunta
P. Raghavendran
Harish Mehta
Surinder Saini
RIL continued to outperform
Singapore complex margins with a
premium of US$4.3/bbl, significantly
above its 5-year average. It reflects
the robust operational performance,
superior configuration and consistent
high utilisation of refineries at
Jamnagar.
Refining EBIT for the year was
down 19.8% y-o-y at ₹19,868 crore
led by lower GRM of US$9.2/bbl.
The segment performance was
impacted by volatile crude prices
and multi-year low light distillate
product cracks.
Petrochemicals intensity index
further improved with enhanced
integration post commissioning of
paraxylene and ROGC facilities at
Jamnagar. RIL also started up all units
of the Petcoke Gasification project.
On stabilisation, the gasification
complex will reduce supplemental
energy cost significantly. Petcoke
gasification project, is transforming
Jamnagar refinery into a unique
'bottom-less' refinery by converting
refinery residue into syngas.
RIL expanded its domestic fuel
retailing footprint to 1,372 outlets
and maintained industry leading
throughput per outlet.
54
Aromatics Complex at Jamnagar
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH
BEST-IN-CLASS
PORTFOLIO
INCREASING
THE ADVANTAGE
LOGISTICS AND
SUPPLY-CHAIN
CRUDE SELECTION
AND SOURCING
• Jamnagar site has
complexity index of 21.1
• Ability to run a wide basket of
crudes and among the lowest
cost producers globally
• Strong operational
performance with flexible
product slate, selling to
highest value markets
• On stabilisation, Petcoke
Gasification complex will
reduce supplemental energy
cost significantly while
ensuring value addition to
captive Petcoke
• Debottlenecking of Diesel
Hydro De-Sulphurisation
(DHDS) unit to higher
capacity
• Ramp-up of domestic retail
network to 1,372 outlets
• State-of-the-art logistics
infrastructure to support
the largest refining hub at
Jamnagar
• Optimises freight costs
through opportunistic use of
time charters
• Global outreach with trading
offices and tankages at key
locations
• Refinery configuration allows
crude portfolio optimisation
with changing market
dynamics
• Eleven new crude grades
processed, including new
North American light grades
and opportunity crude
grades from Latin America
MARKET ENVIRONMENT
ROBUST OIL DEMAND GROWTH
ENABLING MARKET RE-BALANCING AND
SUPPORTING PRICES
Global oil demand growth at 1.2 mb/d in
CY 2018 was around the 10-year average
despite higher oil prices. Brent crude oil
price at US$71/bbl in CY 2018 was higher by
30.9% y-o-y. US, China and India accounted
for almost all of the global growth at
1.1 mb/d. Oil demand growth in the US
was the highest at 0.5 mb/d aided by the
commissioning of large ethane crackers,
higher shale production as well as firm
economic growth. Growth in China at
0.4 mb/d and in India at 0.2 mb/d was
largely structural and broad based.
Global oil demand growth was led by
ethane, LPG and middle distillates.
Demand growth for gasoil was supported
by improved economic activity. Gasoline
demand growth slowed in 2018 impacted
by increase in oil prices.
Chinese oil demand growth was largely
stable at 0.4 mb/d led by a growth in
petrochemical feedstock and jet fuel.
In China, gasoline demand was largely flat
y-o-y due to lower car sales. Diesel demand
declined in China for 2018 owing to slowing
economic growth as well as rising share of
natural gas in the energy mix.
Asian Cracks US$/bbl
Naphtha
Gasoline
Jet
Gasoil
Fuel Oil
Q1
-1.4
12.1
15.3
15.3
-6.0
Q2
-1.3
11.6
14.5
15.4
-4.2
Q3
-6.4
4.7
15.6
15.8
-0.2
Q4
-7.5
3.7
13.0
14.0
-0.9
FY 2018-19
-4.1
8.0
14.6
15.1
-2.8
FY 2017-18
0.3
14.6
13.3
13.3
-4.0
Acid Gas Removal at Gasification
Complex at Jamnagar
55
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Refining and Marketing (R&M)
NON-OPEC GAINS MARKET SHARE
Global oil supply grew by 2.6 mb/d in
CY 2018. Non-OPEC supply grew by 2.7
mb/d led by the strong supply growth in
North America (2.2 mb/d in the US and 0.4
mb/d in Canada). Supply from Russia was
higher by 0.2 mb/d y-o-y while supplies
from Mexico declined by 0.2 mb/d y-o-y.
OPEC supply contracted by 0.1 mb/d y-o-y
in CY 2018 as a result of sharp production
declines in Venezuela and adherence to the
supply restraint deal between OPEC and
non-OPEC producers. Supply from Saudi
Arabia was higher by 0.4 mb/d y-o-y as
Saudi Arabia took a larger than mandated
cut in 2017. Supply from Venezuela fell
further by 0.6 mb/d in 2018. Supply from
Iran for the full year 2018 was lower only
by 0.2 mb/d with US sanctions enforced
towards the end of the year.
OIL PRICES (US$/bbl)
80
70
60
50
40
30
20
Brent
West Texas Intermediate (WTI)
Dubai
7
1
-
n
a
J
7
1
-
b
e
F
7
1
-
r
a
M
7
1
-
r
p
A
7
1
-
y
a
M
7
1
-
n
u
J
7
1
-
l
u
J
7
1
-
g
u
A
7
1
-
p
e
S
7
1
-
t
c
O
7
1
-
v
o
N
7
1
-
c
e
D
8
1
-
n
a
J
8
1
-
b
e
F
8
1
-
r
a
M
8
1
-
r
p
A
8
1
-
y
a
M
8
1
-
n
u
J
8
1
-
l
u
J
8
1
-
g
u
A
8
1
-
p
e
S
8
1
-
t
c
O
8
1
-
v
o
N
8
1
-
c
e
D
9
1
-
n
a
J
9
1
-
b
e
F
9
1
-
r
a
M
FIRM MIDDLE DISTILLATE CRACKS
SUPPORTED REFINING MARGINS
Singapore and North West European
refining margins were lower y-o-y as sharp
decline in light distillate cracks weighed on
stronger middle distillate cracks. Refining
margins in the US Gulf Coast were higher
due to the access to deeply discounted
crude supply from the US as well as from
Canada primarily owing to logistical
constraints for evacuation of crude oil.
Middle distillate cracks gained from firm
economic growth and low inventories
across trading hubs. Refinery utilisation
edged up in CY 2018 to 82.9% compared to
the 5 year average of 81.3% as net refinery
capacity addition lagged oil demand
growth.
Light Distillates
Light distillate cracks were lower in
FY 2018-19 due to moderation in gasoline
demand growth across key markets as well
as higher inventory especially in the US.
Rising oil 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. Growth in China slowed
after new car sales declined by 3% in
CY 2018. Gasoline demand growth in India
in FY 2018-19 was strong at 8.1% y-o-y
despite higher retail prices.
Middle Distillates
Middle distillate cracks strengthened in
FY 2018-19 over the previous year on firm
global demand growth. Middle distillate
demand growth accounted for close to
two-thirds of the oil product demand
growth globally. Gasoil demand was
exceptionally strong in the US aided by
good economic growth as well as higher
shale oil production. Gasoil demand in
China however, fell by 4% in CY 2018 as
the share of natural gas in the energy mix
continues to increase. Gasoil demand in
India was resilient at 3% despite higher
retail prices. Gasoil demand growth
generally remained firm in other parts of
the world through CY 2018.
56
SUPPLY DISRUPTION LED BY
GEO-POLITICAL DISTURBANCE
SUPPORTED OIL PRICES
Brent crude oil prices averaged
US$70.1/bbl in FY 2018-19, higher by
22% y-o-y. Oil prices increased despite
significantly higher production from non-
OPEC suppliers. Heightened geopolitical
tensions in the Middle East, sanctions on
Iran, sharp production decline in Venezuela
and armed conflict in Libya added to the
uncertainty in oil supply.
Jet fuel demand growth remained strong with
Aviation Turbine Fuel (ATF) demand growing
3.0% y-o-y aided by robust 6% y-o-y global
international passenger traffic growth and 7%
growth in global domestic air travel. Jet fuel
demand in India grew by 9.1% led by 18.6%
growth in air traffic in CY 2018.
FUEL OIL
Fuel oil demand declined in CY 2018 due to
substitution from other fuels. Fuel oil demand
from the power sector continued to be
impacted by natural gas substitution in the
Middle East and West Asia. Declining heavy
crude oil production (mainly in Venezuela and
Mexico) and lower Latin American refinery
utilisation reduced the availability of fuel oil.
Further, OPEC oil output cut targeted mainly
towards medium and heavy crude grades and
continuing refinery upgrades tightened fuel
oil supply and boosted fuel oil cracks.
STABLE DEMAND OUTLOOK, IMO 2020
IMPLEMENTATION TO SUPPORT REFINING
ENVIRONMENT
Global oil demand is expected to grow by
1.3 mb/d in CY 2019 supported by moderating
oil prices and start-up of petrochemical
projects in US and China. US crude production
is expected to grow sharply in 2019 as well.
Gasoil demand growth is expected to gain
from the implementation of stricter marine
fuel sulphur specifications starting January
2020. Gasoline demand growth is expected
to recover on moderating oil prices as well as
rising incomes in emerging markets. Global
refinery utilisation is expected to ease with
the addition of large green-field refinery
capacities towards the second half of CY 2019.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 RIL PREMIUM OVER REGIONAL BENCHMARKS ABOVE 5-YEAR AVERAGE
At US$9.2/bbl, RIL refining margin remained relatively strong even in a volatile market.
RIL maintained a significant premium of US$4.3/bbl over the benchmark Singapore
Complex margins. RIL achieved superior refining margins due to optimal secondary unit
utilisation, maximisation of middle distillate yield, dynamic crude sourcing and responsive
product placement.
RIL processed 11 new crude grades this year, including new grades from North America and
opportunity crudes from Latin America. During the year, 64 different crude grades were
processed.
Refining Margins vis-à-vis global benchmarks
Regional Margins (US$/bbl)
Singapore Complex
RIL GRM
Rotterdam (Brent)
USGC (WTI)
FY 2018-19
4.9
9.2
5.6
13.6
FY 2017-18
7.2
11.6
6.3
12.8
FY 2016-17
5.8
11.0
5.3
8.7
FINANCIAL AND OPERATIONAL PERFORMANCE
FINANCIAL PERFORMANCE*
Revenue
EBIT
EBIT%
FY 2018-19
(₹ in crore)
3,93,988
19,868
5.0%
FY 2018-19
(US$ in billion)
57
2.9
FY 2017-18
(₹ in crore)
3,06,095
24,782#
8.1%
% Change
28.7%
(19.8%)
*consolidated
# excludes exceptional item of `1,087 crore representing profit from divestment of stake in Gulf Africa Petroleum
Corporation (GAPCO) during FY 2017-18.
FY 2018-19 revenue from the R&M segment increased by 28.7% y-o-y to ₹3,93,988 crore
(US$57 billion), primarily on account of higher average oil prices during the year. Refining
EBIT decreased by 19.8% y-o-y to ₹19,868 crore impacted by volatile crude prices,
multiyear low gasoline and naphtha cracks. Crude throughput for the year was at
68.3 MMT.
REFINERY SALES (In MMT)
FY 2017–18
FY 2018–19
14.5
14.6
42.2
15.6
17.0
39.1
Export
Captive
Domestic
DOMESTIC MARKETING
Market Environment
In FY 2018-19, the petroleum product
consumption increased to 212 MMT, growth
of 2.7% y-o-y. The industry growth continues
to be led by transportation fuels with
improving accessibility due to increased
network penetration, higher automobile
sales and rising disposable income.
On account of their share, the transportation
fuels are driving the strong oil demand
growth. Gasoline demand grew by 8.1% to
28 MMT and Diesel demand grew by 3.0% to
84 MMT. Growth in demand was facilitated
by expansion of retail network and road
infrastructure. The total number of retail
outlets in India has increased to over 64,624
as both state owned oil marketing companies
and private players continue to expand their
network presence.
With the implementation of the ambitious
Bharatmala and Sagarmala Pariyojana, there
is significantly higher government spend
on infrastructure development ongoing in
the country. These projects are creating
new avenues for network expansion and
will support demand growth of petroleum
products in India over medium-term.
DTA Refinery at Jamnagar
57
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Refining and Marketing (R&M)
Petroleum Retail Business
With a countrywide operational network of
1,372 fuel outlets, RIL is covering
all the key highways in the country.
At 0.2 Million, customer count enrolled
in RIL’s marquee fleet programme –
Transconnect, grew by 12.5% during FY
2018-19. RIL registered industry leading
throughput with innovative loyalty
customer programmes and strong
customer value proposition.
RIL registered y-o-y growth of 9.1%
in retail Diesel and 21.8% in retail
gasoline volume compared to 2.6% and
8.1% for industry, respectively. Share of
fleet (trans-connect) sales in the retail
volumes is significantly higher than
competitors. RIL’s emphasis on quality
and quantity (Q&Q) of Fuels, superior
service and technology enabled value
added offerings at the retail outlets have
resulted in industry leading throughput.
'Desh ka Sacha Pump' campaign built
around showcasing RIL’s Q&Q proposition
continues to resonate with the customers.
A) Operating Strategy
RIL serves its family of satisfied
customers with a unique Q&Q fuelling
experience through the entire supply
chain to the Retail Outlets. RIL’s refinery
is technically equipped to produce BS VI
fuels and has already started supplies of
the same in the National Capital Territory
(NCT) and adjoining districts.
After being the first Oil Manufacturing
Company (OMC) to rollout dynamic
pricing regime, RIL has now also become
the first OMC to implement Vapor
Recovery System (VRS) at retail outlets
at all the locations in the mandated
geographies within stipulated timelines.
RIL has reinforced its customer value
proposition by leveraging the unique
synergy of RIL’s group companies –
Reliance Retail and Reliance Jio.
An array of co-located convenience
stores have already been launched in the
retail network and company is working
on plans to augment the setup. Jio
connects each of RIL’s outlet through
high end fiber providing best-in-class
connectivity which would form the
backbone of RIL’s pioneering proactive
customer service.
Mixing its customer-first approach with
industry-leading practices, RIL will
continue setting higher benchmarks
of customer fueling experience in the
country.
B) Digitisation Strategy
RIL continues leveraging technology to
exceed service expectations of all RIL's
internal and external stakeholders.
As a part of RIL's digital transformation,
both RIL's Customer Service and
Technology are rapidly evolving.
For enabling the same, RIL is working
on the opportunities in the Industry 4.0
landscape. Next generation technologies
such as Artificial Intelligence, Blockchain
and Internet of Things (IoT) are the
epicentre of RIL's business improvement
and enhancement initiatives.
To augment seamless implementation of
these services in the field, RIL has already
initiated the rollout of state-of-art new
age fuel dispensers across the network.
To take the fuel delivery to customer’s
Empowering customers to monitor
door-step, RIL is working on next
generation business models. Over 260
sites are serving diesel in packaged
containers to non-transport sector in
general and telecom sector in particular.
RIL has all the requisite regulatory
permits for launching diesel in High
Density Polyethylene (HDPE) packs.
their fleet on the go, offering flexibility
of 24X7 fund transfer for loading their
fleet account and introduction of virtual
card for enabling quicker transactions
continue to resonate well with RIL's key
customer segment.
Through its social media channel, RIL
endeavours to work closely with the
last mile customer for getting service
feedback and upgrading the offerings to
meet their expectations.
Petroleum B2B Business
A) HSD – Direct
Bulk Diesel registered a y-o-y growth
of 5.1% in spite of the concerns around
growing electrification. During the year,
RIL registered a y-o-y volume growth
of 21.7% increasing market share to
8.5% despite difficult market conditions
and competition led margin pressure.
Non-railway business registered an
impressive 34% y-o-y growth.
Alongside strengthening railway
business, RIL has also created a strong
foothold in the second largest sector
in the direct HSD segment through the
foray in State Transport Undertaking
(STU). Mines, infrastructure and fisheries
58
Reliance petro retail outlet
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 have all showed promising growth on the
back of focused sector specific operating
strategy.
Growth in HSD – Direct sales volume
would be driven by getting higher
volume share in STUs, designing unique
operating models for fisheries and mines
along with strengthening presence in the
Southern markets.
B) Aviation Turbine Fuel (ATF)
With a double digit growth for over 50
consecutive months, at a growth rate
of 18.6% in 2018, India is the fastest
growing domestic aviation market in
the world for the 4th consecutive year.
Demand for aviation fuel grew at 9.1%
y-o-y in FY 2018-19. RIL achieved y-o-y
Volume growth of 9.3% to its airline
partners.
In addition to the best in class service
standards and end-to-end automation,
RIL continues to be the only OMC offering
unique turnkey solutions to its airline
partners for cost reduction across its
network. Having the highest market
share at 20% of the operating airports
reinforces customer’s trust in Reliance
Aviation.
To leverage the soaring Indian aviation
market, RIL has enhanced its network of
Aviation Fuel Stations to 30 in
FY 2018-19 and working on adding
another 10 locations in the near term.
C) Facilitating Nation’s Energy Security
More than three quarters of RIL’s
production of transportation fuels was
absorbed in the Indian market during
FY 2018-19. In addition to selling through
own retail network and HSD – Direct
segment, the absorption was achieved
by bridging the product deficit of all
the major Public Sector Oil Marketing
Companies in India.
RIL is also partnering with Government
in meeting their vision of abolishing
indoor pollution to improve the health
of rural women. Significant share of the
household cooking LPG demand of the
Public Sector OMCs is met by RIL.
JAMNAGAR SUPERSITE HAS
COMPLEXITY INDEX OF 21.1
Complexity index (CI) designates the
capabilities of a refinery to upgrade
lowest quality crude to the highest quality
refinery products, including fuels and
petrochemicals. Complexity index of
Jamnagar supersite, as per KBC, a global
refinery consultant, has increased from
earlier 12.7 to 21.1 or a 66.1% boost
with the start-up of Jamnagar expansion
projects, including ROGC and downstream
units, Paraxylene complex and Petcoke
Gasification complex. RIL’s Jamnagar
supersite ranks 1st in the world in
complexity barrels, aided by best-in-class
Refinery and Petrochemicals integration.
OIL TO CHEMICAL
Reliance has developed a future-ready
Oil-to-Chemical strategic vision to,
progressively, transform the Jamnagar
refinery from a leading producer of fuels to
chemicals.
The fundamentals of the Jamnagar oil-to-
chemical strategy, are to employ advanced
molecule management to upgrade the
refinery intermediate streams, by value.
The Jamnagar oil-to-chemical objectives
are to preserve as well as upgrade existing
refinery margins, while maximising asset
utilisation, for a sustainable competitive
cost of chemicals.
RIL has developed a disruptive technology
innovation, a Multizone Catalytic Cracking
(MCC) process, which converts a wide range
of feedstock to high value propylene and
ethylene in a single riser. This technology,
protected by Reliance’s IP, shall underpin
Jamnagar’s oil-to-chemical mission.
The oil-to-chemical programme is a
roadmap implemented over a long time
horizon, based on market outlook and
price triggers for refinery fuel products. The
ultimate goal is to achieve greater than 70%
conversion of crude refined in Jamnagar,
to competitive chemical building blocks of
olefins and aromatics.
The Jamnagar refinery product slate, at the
culmination of oil-to-chemical transition,
shall be only jet fuels and petrochemicals.
All refined products priced below crude
shall be eliminated for chemicals at initial
stage. Final fuel de-risking shall target
elimination of gasoline, alkylate and diesel,
synchronised to the global evolution of
E-mobility and transport fuel demand
decline.
In summary, the Jamnagar supersite shall
continue to maintain a pre-eminence in
Reliance’s revenues and earnings, with the
oil-to-chemical growth plan.
Market outlook
With expectations of global petrochemicals
demand growing at a faster rate as
compared to transportation fuels in longer
term, some companies are investing to
integrate refinery to petchem to maximise
yields of petrochemicals from every barrel
of oil processed. This can possibly lead to
significant cost savings through economies
of scale and improve competitiveness of
companies undertaking such projects.
New complexes in Asia and the Middle East
have announced projects with 25-40%
crude to chemical conversion. A Leading
Middle Eastern NOC in collaboration with
technology providers has undertaken
research to maximise oil to chemical
conversion to 70%.
R&M PLATFORM
The R&M business has already embarked
on Journey of Platform Based Ways
of Working. Also single unified source
(Datalake) for all the organisation data,
is established. Advanced analytical
models along with visualisation, are being
developed and delivered to business users
in phase wise manner. These initiatives are
helping business users with insights for
informed decision making.
Jamnagar supersite ranks 1st in the
world, in complexity-barrels.
59
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Refining and Marketing (R&M)
Q ILLUSTRATION: IMPACTING CUSTOMERS WITH A DIFFERENCE
Digital ecosystem
Increase in customer
engagement
Reinforce
customer trust
Innovating Technology to Transform
Transconnect
Technology adoption–Automated
Delivery Receipt (ADR) – Eliminating
manual intervention
Convenience for Customers–
C Stores
Situation
Situation
Situation
There was a need to increase customer
retention along with targeting new
customers
Primary purpose of eliminating manual
intervention was to increase transparency
with airline partners
To be more competitive in the market by
trying to offer more convenient shopping
experience to customers
Action
Action
Action
•
Issuance of Virtual Card for Instant
enrolment allowing real-time
deliverance of marketing offers to
customers
• Trans-Mobile for Instant transaction,
cash loading and simplified account
updation
• Integration of customer and fleet
application, allowing real time viewing
of customer creation
• Installing state-of-the-art system to
provide 100% ADR to all scheduled
airline partners
• Offering collocated one stop shop
(successful commissioning at 8 pilot
points) for purchasing products of daily
needs and consumption
• Leveraging synergy with Reliance Retail
via convenience stores – Qwik Mart
Outcome
Outcome
Outcome
Improved customer experience leading
to higher customer retention reflected in
increased sales
Total transparency helped reinforce
customer trust in RIL service
Reinforced competitiveness through
unique proposition
60
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 PROJECT UPDATE
PETCOKE GASIFICATION
All units of the Gasification complex
including air separation units, material
handling systems, gasifier islands, syngas
shift and processing facilities, sulfur
recovery units, and associated utilities
and offsites have been started safely.
Currently, the gasification complex is under
stabilisation.
The pet-coke gasification project shall
transform Jamnagar into a unique
'bottom-less' refinery by upgrading low
value refinery residue, pet-coke, into
clean syngas. This will help in reducing
the impact of LNG price volatility by
substituting high cost LNG imports. It is one
of the largest ‘Clean Fuel’ projects in the
world. Syngas shall leverage LNG and pet-
coke price arbitrage to minimise the utility
cost of the Jamnagar complex.
BUSINESS STEWARDSHIP
The Jamnagar supersite is designed to
achieve zero freshwater withdrawal by
implementing design efficiency. It is also
capable of producing Euro VI fuel.
Jamanagar petcoke gasification – one of the largest ‘Clean Fuel’ projects in world
61
Petcoke Gasification Unit at JamnagarGovernance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Petrochemicals
Nikhil R. Meswani
Vipul Shah
Par Singh
RIL achieved record EBIT of `32,173 crore
(up 51.9% y-o-y) and production
of 37.7 MMT in the petrochemicals segment
for the year, reflecting value accretion
and growth acceleration through scaled
up capacities. RIL’s integrated operations,
feedstock flexibility and enhanced customer
focused approach, delivered a sustainable
bottom line for the Petrochemicals business
amidst a challenging global environment.
Completion of last mile connectivity of
the ethane pipeline and commencement
of ethane cracking at Nagothane
division underpinned RIL’s global cost
competitiveness.
Building on its 'Chemistry for Smiles'
theme, RIL continues to broaden its product
portfolio, through innovation and customer
centric initiatives, like R|ELan fabrics and
Recron Certified products. RIL launched the
'Fashion For Earth' and the eco-sustainability
porgramme, to promote circularity within
the fashion industry.
Reliance is also strengthening its newly
ventured Advanced Materials and
Composites businesses by leveraging
the capabilities in polymer formulations,
materials engineering and product design,
3D printing and application development
to deliver innovative products and solution
offerings to the industry.
62
Jamnagar supersite
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 ROBUST ASSET
PROFILE
STRATEGY
SUSTAINING VALUE
CREATION
COMPETITIVE
STRENGTHS
• One of the most integrated
petrochemicals producers globally
• Leading market position across product
categories
• World class production facilities
• Industry leading operating rates across
products
• Commissioning of High Purity Iso-
Butylene (HPIB) unit for C4 value
addition
• Refinery off gas cracker, a unique project
and expansion of downstream capacity
to cater to expected demand growth
• Ethane imports enable a cost advantage
and feedstock security
• Strong brand initiatives enabling
Reliance’s shift in focus towards
consumers
• Fully integrated operations providing
cost competitiveness
• Captive and cost effective feedstock
supplies provide feedstock security
• Benefits of economies of scale
• High domestic market share across most
products
• Proximity to key consuming markets and
diversified consumer base
INTRODUCTION
HARNESSING THE POWER OF CHEMISTRY
Name
Olefin
Polymers
Polyesters
DESCRIPTION
Unsaturated open chain
hydrocarbon
Large molecule with
repeating subunits
Synthetic Fibres
Aromatics and Fibre
Intermediates
Elastomers
Raw Material for
polyester and textile
industries, Industrial
Chemicals
Polymers with rubber
like elasticity
RIL PORTFOLIO
Ethylene, Propylene,
Butadiene
Polyethylene(PE),
Polypropylene(PP),
Polyvinyl chloride (PVC)
Polyester Filament
Yarns (PFY), Polyester
Staple Fibres (PSF),
Polyethylene
Terephthalate (PET)
Purified Terephthalic
Acid (PTA), Monoethylene
Glycol (MEG), Paraxylene
(PX), Benzene (BZ)
Poly-Butadiene
Rubber (PBR), Styrene
Butadiene Rubber
(SBR), Butyl Rubber
APPLICATIONS/ASSO-
CIATED INDUSTRIES
Industrial Chemicals
and Polymers
Construction,
Agriculture, Automobile,
Consumer Goods
Textile / Apparel
industries and
Beverages
Polyester and textile
industries, Industrial
Chemicals
Tyres and Automobile
CAPACITIES/ GLOBAL
MARKET POSITION
Feedstock for
petrochemical products
Ethlyene: 3.6 MMTA
PE: 2.3 MMTA/ 11th
PP: 2.9 MMTA/ 5th
PVC: 0.7 MMTA/ 16th
PFY and PSF: 2.1 MMTA
PET: 1.1 MMTA/ 8th
PTA: 4.9 MMTA/ 4th
MEG: 1.5 MMTA/ 6th
PX: 4.8 MMTA/ 1st
PBR: 120 KTA
SBR: 150 KTA
63
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Petrochemicals
MARKET ENVIRONMENT
FY 2018-19 witnessed a firm energy price environment which, reflected in petrochemical
feedstock and product prices. However, the strength in product prices were relatively
modest as compared to feedstock prices, resulting in mixed petrochemicals margins.
OLEFINS AND POLYMERS
Global demand for ethylene increased by 3% y-o-y to 158 MMT in 2018. Global ethylene
operating rates have declined to about 88% from about 89.5% in previous year. New
capacities of 6 MMTA was added during the year, resulting in capacity addition outpacing
demand growth.
Global Ethylene Supply/Demand 2018
Production by feedstock
Production : 158 MMT
Naphtha
Ethane
Propane
Butane
Others
Source: IHS Markit
Demand by end use
Demand : 158 MMT
40% Polyethylene
39% Ethylene Oxide
9% Ethylene Di-Chloride
5% Ethyl Benzene
7% Others
62%
15%
9%
6%
8%
USA has started 3.5 MMTA new ethane based crackers capacity in 2018. The other major
capacity additions were in China, Iran and South Korea. In the USA, another 4.3 MMTA
crackers capacity is expected to come online in 2019. These additional capacities are based
on low cost ethane from shale gas production, continuing to pressurise ethylene market
fundamentals. In Asia, 2.3 MMTA capacity is expected to come online in China in 2019
besides 1.3 MMTA capacity in Malaysia.
Global propylene demand increased by 6% y-o-y to 112 MMTA in 2018. The higher
incremental demand compared to supply (5% y-o-y) resulted in operating rate increasing
to 80% from 78.5% in 2017. The addition of 2.8 MMTA capacities in 2018 is expected to
keep markets well supplied in the near-term. Economics of Coal to Olefins (CTO) capacities
improved during the year with softening of coal prices; however, environmental risk
persists. On-purpose Coal to Olefins (CTO), Methanol to Olefins (MTO) and Propane
Dehydrogenation (PDH) units remained the marginal supplier of Olefins to global markets.
Global Polyolefin and PVC Demand
(In MMT)
Polypropylene
Polyethylene
Poly Vinyl Chloride
Ethylene
Propylene
Source: IHS Markit
CY 2018
74
101
45
158
112
CY 2017
70
96
43
154
106
% growth
5.7%
5.2%
4.7%
2.6%
5.7%
Global polymer demand (PE, PP and PVC) in 2018 was estimated at 220 MMT. Polyethylene
(PE) accounted for 46%, Polypropylene (PP) 34% and Polyvinyl Chloride (PVC) 20% of the
market. Demand for polymers remained resilient amid uncertain global economic growth
and grew by a healthy 4.8% during the year, above the 5-year CAGR (4.6%). The global
demand for polymers is expected to grow at a healthy pace in near term, driven by India,
China and other emerging economies. Trade conflicts between the US and China re-routed
global trade flow. Incremental supplies from the US have been diverted to the South East
Asian market, while China increased its imports from the Middle East. China’s ban on
import of recycled polymers w.e.f. January 1, 2018 resulted in increased demand for virgin
resin in the region.
64
PRICE AND MARGIN ENVIRONMENT
Polymer chain
Crude oil prices saw high volatility during
the year. The prices touched near 4-year
high amid geo-political concerns and
production cut by OPEC. In the later
part of the year, prices moderated due to
global economic concerns, crude stock
build-up in the US and weaker energy
demand growth projection. Average
naphtha prices in Asia were up by 16% y-o-y
in FY 2018-19 amidst strong crude price
and sustained petrochemical demand.
Ethylene prices in Asia marginally softened
by 3% due to lower downstream PE prices
amid new capacity additions in the US.
Propylene prices in Asia strengthened by
12% with healthy downstream PP demand
growth and seasonal turnaround of
crackers in North East Asia.
South East Asia polymer margins
(US$/MT)
HDPE-Naphtha
PP-Propylene
PVC-EDC-Naphtha
FY 2018-19 FY 2017-18
668
300
583
576
249
465
Source: Platts and ICIS
PP and PVC prices remained well above
5-year average during FY 2018-19 with
healthy demand supply scenario. However,
polymer margins weakened due to high
feedstock prices. On y-o-y basis, PP, PE
and PVC margins corrected by 17%, 14%
and 20%, respectively. PE prices weakened
amid increased supplies as first wave of
new ethane-based capacities came online
in the US. PVC margins weakened due to
high Ethylene Dichloride (EDC) prices led by
a weak caustic price environment.
Polyester and Fibre Intermediates
The polyester market remained volatile
during FY 2018-19 with overall weakness
due to sluggish downstream demand.
Initial strength was followed by gradual
weakness in polyester sales, which further
weakened as demand remained lacklustre
even after Chinese National holidays.
Overall, polyester prices during the period
were higher but margins declined due to
firm feed-stock prices. Globally, polyester
demand growth was resilient at 3% during
2018, driven by demand in Asia’s emerging
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 economies, which cover 85% of the global
market. The Indian polyester market
witnessed healthy demand growth of 7%.
to grow by 3% CAGR till 2022. India demand
is around 10% of the global consumption
(68 MMTA).
Global PET prices for the year surged by
18% y-o-y as demand remained healthy
amidst tight supplies with delays in the
restart of the PET units in USA, Europe
and China. PET margins surged by 32%
y-o-y owing to firm demand from beverage
segment, tight supplies and curtailed
output. During CY 2018, global PET demand
was estimated at 24 MMT, compared to
global PET capacity of 31 MMT. Asia / Far
East region account for 42% of global
PET demand with China’s PET demand
estimated at 5.5 MMT (23% of global PET
demand).
Polyester and fibre intermediates margins
(US$/MT)
PX
PTA
MEG
POY
PSF
PET
FY 2018-19 FY 2017-18
346
131
538
282
201
167
479
181
417
262
154
222
Source: Platts, ICIS, CCF Group
During FY 2018-19, polyester chain margins
remained healthy, indicating strong
market sentiments. Operating rates across
polyester chain remained healthy favouring
integrated polyester producers during the
year.
During the year, PX prices gained 25% y-o-y
driven by firm feedstock prices and healthy
PTA demand. During CY 2018, global PX
capacity grew by 4% y-o-y, compared to 9%
y-o-y demand growth. However, start-up
issues in new PX units and subsequent
planned turnarounds kept PX markets
tight, supporting prices and margins.
PTA markets remained buoyant amidst
healthy operational efficiencies, supported
by strong downstream demand and tight
supplies. PTA margins improved 38% y-o-y
with firm demand from markets outside
China. During 2018, Global PTA capacity
grew by 7% y-o-y compared to 8% y-o-y
demand growth. China continues to
be the largest consumer of PTA,
accounting for 58% of the global
consumption. China demand is expected
Monoethylene Glycol (MEG) markets
witnessed weakness as margins declined
by 23% y-o-y during the period. MEG
markets had a strong start to the year but
faltered due to rising port inventories and
slower offtake from polyester sector. Global
capacity grew by 6% y-o-y during 2018,
compared to 8% y-o-y demand growth.
China introduced trading in MEG at Dalian
Futures Exchange to streamline investment
into MEG and curb speculative trading.
International cotton prices improved 5%
y-o-y during FY 2018-19. Cotton to polyester
price differential narrowed marginally and
stayed above 5-year average, favouring
polyester consumption. Global cotton
production in 2018-19 (August-July) is
expected to decline 4% y-o-y to 26 MMT
against increased consumption of 1% y-o-y
at 27 MMT. Slower than expected arrivals
in Indian markets have bolstered domestic
cotton prices. India’s cotton supply is
estimated to drop 1% y-o-y to 7.19 MMT
during cotton season 2018-19. Total cotton
consumption is estimated to be stable at
6.49 MMT, resulting in 13% y-o-y lower
closing stock at 0.70 MMT, conducive to
polyester substitution
Elastomers
During 2018, global Natural rubber
production was at 13.9 MMT, up 2.5% y-o-y
while demand growth was up about 4.9%
y-o-y to 13.87 MMT. Slowdown in economic
activities driven by the US-China trade
conflict weighed on downstream operation
and rubber consumption.
Global capacity of Butadiene continues to
remain stable at 15.2 MMTA with average
operating rate of around 78% in CY 2018.
With more light feed crackers coming
up, mainly in the US, the availability of
Butadiene is expected to be limited.
The global capacity of PBR is 4.5 MMTA
in 2018 with average utilisation rate of
78%, while the global capacity of SBR is
6.7 MMTA in 2018 with average utilisation
rate of 68%. PBR and SBR demand are
directly linked to growth in automobile
and tyre sectors. During CY 2018, global
passenger car assembly grew at 2.3% while
commercial vehicles production grew by
5.3% y-o-y. The operating rates of both PBR
and SBR are expected to improve in near
future with growing demand and limited
capacity addition.
DOMESTIC SCENARIO AND
OPERATIONAL PERFORMANCE
Polymers
The Indian polymer market registered a
healthy growth of about 7% in FY 2018-19
y-o-y. PE demand growth was healthy at 4%
y-o-y (led by LLDPE growth of 11% y-o-y)
driven by increasing disposable income and
growth in e-commerce sector. PP demand
growth was at 7% y-o-y driven by boost in
infrastructure and cement industry. PVC
demand growth has been fuelled by pipe
demand, both in the construction and
agriculture sectors. Enhanced focus on R&D
in automobile and appliance sector led to
sustainable growth in the PP co-polymer
segment in India. Increasing awareness
and policies against single usage plastic
resulted in lower demand growth in tubular
quench (TQ) and thermoforming sectors of
PP and PE.
India is the world’s fastest growing polymer
market with a 5-year CAGR (2014-18)
demand growth of 9.1%. It is the second
largest demand hub for polymer in Asia
after China.
Cracker Control Centre
65
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Petrochemicals
FINANCIAL AND OPERATIONAL PERFORMANCE
Financial Performance
Revenue
EBIT
EBIT (%)
FY 2018-19
(` in crore)
1,72,065
32,173
18.7%
FY 2018-19
(US$ in Billion)
24.9
4.7
FY 2017-18
(` in crore)
1,25,299
21,179
16.9%
%
Change
37.3
51.9
FY 2018-19 revenue from the
Petrochemicals segment increased
by 37.3% y-o-y to `1,72,065 crore
(US$24.9 billion), primarily due to higher
volumes and prices, which reflected full
benefits of ROGC and Paraxylene capacity
expansion projects. Petrochemicals
segment EBIT increased sharply by 51.9%
to its highest ever level of `32,173 crore
(US$4.7 billion). Strong integrated polyester
chain margins offset weakness across the
polymer chain, which was impacted by
incremental supplies from new US crackers.
Petrochemical segment recorded strong
EBIT margin of 18.7%, aided by strength in
PX margins.
Polymer Production
(Production in MMT) FY 2018-19 FY 2017-18
2.8
PP
1.4
PE
0.7
PVC
2.6
Ethylene
2.9
2.1
0.7
3.7
RIL is a leading global manufacturer
of polymers with 6 state-of-the-art
manufacturing facilities. RIL maintained
its leadership position in Indian polymer
market with domestic industry market
share of 33%.
RIL is the world’s fifth largest producer
of PP. During FY 2018-19, the Company
recorded its highest ever production of PP
at 2.9 MMT and maintained 45% domestic
market share. Post start-up of ROGC and
downstream plants, RIL became world’s
7th and 11th largest producer of LLDPE and
LDPE respectively. RIL produced 2.1 MMT
of PE, which helped grow the domestic
PE market share to 28% and LDPE market
share from 35% (before start-up of ROGC)
to 62%. RIL’s PVC production was at
0.7 MMT with 23% domestic market share.
RIL’s continuous efforts towards
strengthening of supply chain network,
enabled the Company to place polymers
in more than 70 countries globally during
the year.
Polyester and Intermediates
Production
Global production*
(Production in MMT) FY 2018-19 FY 2017-18
1.1
POY
0.7
PSF
1.1
PET
3.7
PX
4.7
PTA
MEG
1.2
* Malaysia numbers included
1.1
0.7
1.2
4.3
4.9
1.7
During the period, Indian polyester
filaments market grew by 10% y-o-y while
PET market grew by 9%. PFY markets were
buoyant in the early part of the year as
downstream units diversified with new
applications, expansion and re-stocking
due to firm prices. PSF markets weakened
due to liquidity crunch, increased recycled
PSF availability and weak international
price environment. PET demand firmed
amidst improved downstream buying,
supported by Government’s decision
to exclude PET from ban on single-use
plastics.
Domestic Elastomer Production
Elastomer production
(Production in MMT) FY 2018-19 FY 2017-18
0.2
Butadiene
0.1
PBR
0.1
SBR
0.2
0.1
0.1
Indian elastomers sector witnessed stable
demand environment during the year, led
by commercial vehicle demand growth
(17.6%). Passenger vehicle demand
growth was muted during the year at 2.7%.
66
Automobile demand in the latter part of the
year was impacted by poor festive demand,
revised axle norms and high fuel prices.
Butadiene witnessed demand growth of
15% y-o-y to 360 KT during the year as
against an installed capacity of 550 KTPA.
PBR and SBR demand in India is estimated
to be 194 KT and 330 KT respectively in
FY 2018-19 and is expected to grow at 5-7%
annually in the medium-term.
NEW PRODUCT DEVELOPMENTS
Polymers
• PE Net for paddy stubble bales:
Broadening Plasticulture applications.
• Special PE sleeves for saplings:
Protection from wildfires in Maharashtra
• Cast film PP for food packaging: Increase
shelf-life of perishables and products
containing high fatty acid
• PE bubble film for greenhouses: Better
technical performance and higher shelf-
life of nearly 10 years, reducing farmers’
recurring expenses
• High melt flow index PE: For applications
of stretch films
• 100% recyclable PE pouch: For consumer
packaging application
PROJECT UPDATE
Record production during the year was
achieved with full utilisation of the ROGC
and PX projects which were commissioned
in the previous year. RIL also completed the
last leg of ethane pipeline between Dahej
and Nagothane during the year. Ethane
cracking at Dahej, Hazira and Nagothane
has been streamlined and all the plants
achieved highest ever ethylene production.
Refinery Off Gas Cracker at Jamnagar
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 INTEGRATED BUSINESS MODEL
TRANSFORMING RIL PETROCHEMICAL BUSINESS, BUILDING A CUSTOMER CENTRIC ORGANISATION
Petrochemicals
R&M
Naphtha
Propane
Cracker
Ethane
Ethane Imports
C3/ Reformate
C2/ C3/ C4
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
Delivering sustainable
solutions
Global business process
Reliance Management Systems
Integrated SCM
CRM
R-HR
World-class IT and analytics
APO
Price Mgmt. System
Forecasting Tools
SAP-BPC
CONSUMER FACING BUSINESS
R|ELAN – NEXT GENERATION FABRIC
R|Elan™ is a portfolio of innovative fabrics that has been developed to offer more
to end consumers, across apparel segments like activewear, denim, ethnic and
western wear, both formals and casuals. Fabrics from R|Elan™ are made from
specially engineered fibres that combine functionality and fashion with a focus on
sustainability.
Flagship products
R|Elan™ Kooltex used in making
activewear apparels
R|Elan™ FreeFlow used in manufacturing
sarees and dress material, western and
ethnic wears
R|Elan™ SuperSoft used in shirting
R|Elan™ GreenGold, the textile made
out of the greenest fibres in the world,
manufactured by recycling used PET
bottles that finds its way in trousers
and denim
R|Elan™ SuperBlack used in suiting
Widespread acceptance
In line with RIL’s B2B2C focus, R|Elan™
directly connects with brands and retailers
who know their target consumers. R|Elan™
has been gaining overwhelming acceptance
from domestic and global brands across all
apparel segments.
In order to support circularity in fashion
and catalyse waste reduction in the fashion
industry, R|Elan™ has launched the ‘Circular
Design Challenge’ through its ‘Fashion
for Earth’ initiative together with the UN
Environment in India and Lakme Fashion
Week of IMG-Reliance.
Committed to a larger purpose
R|Elan™ is committed to a circular
economy in fashion industry and is one
of the world’s 'greenest' recycler of PET
bottles into fabric, thereby helping reduce
pollution and carbon footprint.
67
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Petrochemicals
RECRON® CERTIFIED
Developing a unique consumer brand
Fifteen years ago, Reliance identified
the under-served ‘sleep and dream’
product category as an opportunity
area and developed Recron® Certified, a
unique consumer brand franchise-based
business. Since then, Recron® Certified has
consolidated its position as a true-value,
high-quality home-comforts product brand
and has become the largest selling pillow
brand in the country. Owing to the depth
of its merchandise and wide-spread reach,
Recron® Certified is a brand appealing to
both the value-seeking mass segment and
the premium class-seeking segment.
Focus areas
• Strengthen its portfolio further by
penetrating deeper into the home
comfort segment
• Extend consumer trust from pillows to
mattresses, leveraging brand strength,
category expertise and quality emphasis.
It aims to enhance customer comfort
during sleep and become a leading
mattress brand in the chosen segment
One in 10 families in India has
experienced the comfort of sleeping
on a Recron® Certified pillow.
RECRON® CERTIFIED – HELPING MILLIONS SLEEP BETTER
Pan-India presence through an extensive channel network comprising Authorised
Licensee manufacturers, Distributors and Retailers (both traditional as well as modern
retail formats)
100% quality control – Committed to offering products with highest quality standards as
per the existing RIL standards, and consistent across all the markets, using the
‘Zero Defect Principle’
75% products made using ‘green fibres’, thereby making them environmentally friendly,
generating societal value and promoting a circular economy
68
BRAND PROPOSITION:
THE SLEEP EXPERTS
The brand consists of a wide range
of products in the Sleep Comfort
category – pillows, cushions, bolsters,
comforters and quilts. With the recent
addition of a number of products
variants in the high-growth mattress
segment, Recron® Certified is now
truly a one-stop shop for all sleep and
dream products.
In each of its product categories,
significant investments in R&D
have ensured that the brand offers
superior attributes, including
aesthetics, ergonomics, durablity and
value in use.
ADVANCE MATERIAL
Reliance is developing a new business
vertical in the Advance Material domain.
Material properties and material
engineering coupled with design, provides
a development platform that will add
value to Reliance’s current and new
product offerings and enable Reliance to
deliver compelling solutions to customers.
RelWoodTM is one such advance material,
replacing wood across categories.
Reliance has already ventured into
Fibre-Reinforced Composites as part of
its Advance Material strategy, which helps
in light weighting and rendering superior
properties. It has the potential to reduce
steel usage in infrastructure projects.
Reliance is also working on two-
dimensional nanomaterials such as
graphene, which when added to the
existing polymer portfolio, would deliver
new formulated materials that will provide
exceptional value to the customers.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19
RELWOOD™ – ONE MATERIAL, ENDLESS
POSSIBILITIES
The consumption of wood in India has risen
with the growth of construction industry
at about 10% y-o-y. However, for nearly a
century, there has been no path-breaking
innovation in the wood material industry
in India, except for the advent of plywood.
Reliance identified an opportunity in this
space and innovated RelWood™, a natural
fibre polymer composite. RelWood™ is
the result of a disruptive technology that
combines the aesthetics and warmth of
wood with a focus on sustainability.
Made with patented German technology,
RelWood™ is 100% waterproof,
termite-proof, UV-resistant and
fire-resistant, but is virtually
indistinguishable from wood by look or
touch. It can also be thermoformed to
create unique shapes and designs.
and aerospace. RCS leverages in-house
designing and development capabilities
to deliver new applications and solutions,
tailor made as per customer requirements.
RELX™ COMPOSITES AND
CARBON FIBRE
RIL acquired the assets of Kemrock
Industries in FY 2017-18, which is now
launched as Reliance Composite Solutions
(RCS) under the trademark RelX™. RCS
has a state-of-the-art manufacturing
facility spread across 198 acres, having
composites processing units consisting of
3 feedstock and 7 finished goods plants.
RCS will provide solutions to markets like
mass transport and railways, renewable
energy, infrastructure, automotive, defence
RelWood furniture
Q INNOVATIVE PRODUCT DEVELOPMENT
1 FTTX POLE FOR TELECOMMUNICATION
These are composite poles used for transmitting gigabytes of data and are produced by pultrusion process.
Poles are designed as per TIA-222 G2 (US telecom standard). These poles are lightweight and cost competitive,
compared with existing metal or concrete ones. The design is flexible to attach additional fixtures and can be
used as a utility pole or as a next generation smart pole. Reliance is also engaged in developing new innovative
composite material for a smart light pole for 5G infrastructure.
2 UNDERGROUND FUEL STORAGE TANK (UST)
These are underground FRP storage tank prototypes for storing petroleum products. It is designed according
to the latest standard EN13121-3 and tested for UL-1316. The use of composite has benefitted the tank with
non-corrosive property, less manufacturing time and improved product life.
3 TRAIN COACH TOILETS
Reliance materials – right from thermoplastics to composites – are used in the production of prototype of toilet
modules with a new radical design considering aesthetic, functional and passenger comfort requirement.
4 TRAIN INTERIORS FOR COACH
Reliance’s composites are being used in prototypes of new passenger locomotive interiors with new features such
as inclined stair arrangement for easy ingress and egress of passengers and foldable ladder for giving passengers
easy access to berths.
5 CARBON FIBRE WRAP
Using carbon fibre wrap, Reliance Composites has the capability to design and implement solutions aimed at
restoring building, pipeline, road and bridges infrastructure.
Reliance Composites is building an application development centre to showcase capabilities and to help customers understand
the applications. It will be equipped with state-of-the-art characterisation and testing facility to foster innovation and new product
development.
RIL is also investing in India’s first and largest carbon fibre production line with homegrown technology–to cater to India’s aerospace and
defence needs and other specialty industrial applications.
69
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Petrochemicals
• Predictive analytics on demand forecast
integrated for accurate planning to serve
customers better
• Customer interface for fabric certification
and brand management for R|Elan brand
was built on open source, microservices
based platform architecture
PROCESS AUTOMATION AND
ENHANCED DECISION MAKING
• Robotic Process Automation (BOT) for
automating repetitive processes
like E-way bill, e-BRC, B2B order
processing etc.
• No touch sales order processing based
on auto allocation through system
• Block chain platform integrated with
electronic Bill of Lading (eBL) to issue
and manage eBL. Blockchain enabled LC
transaction through a consortium led by
HSBC
• “Business Command Center” system of
role based dashboards that leverages
information for collaborative operations
and enhanced decision making
• Data Science and Predictive Analytics
deployed for Price forecasting, Customer
Credit risk management and freight cost
analysis
DIGITAL SUPPLY CHAIN
• Warehouse Management (EWM) operated
on smart devices simplifies complex
logistics, optimises inventory tracking,
distribution operations, multi-channel
fulfilment, and more, all real time
• Ensure distribution safety through
'Emergency Response Center' on
IoT enabled Vehicle Tracking System
integrated with biometrics and voice box
• Automation through EDI (Electronic Data
Interface) with major ports and shipping
lines
• ePOD mobile app for drivers to capture
electronic proof of delivery and auto
service certification for transporters
• Integrated Business Planning and
Optimisation implemented with objective
to maximise contribution rate
• Cloud based systems for digital
settlement of commercial contracts, eBL
and road freight management
•
RELIANCE’S APPROACH TO CIRCULAR
ECONOMY
Plastics play a major role in improving the
quality of life and help in tackling number
of societal challenges. Plastics directly aid
in achieving the UN’s SDGs by reducing
food waste (increasing shelf life of food),
helping reduce resource consumption
(current alternatives use more energy and
water in production) and providing raw
materials for life saving medical instruments.
Through innovative solutions/ applications,
plastic products help in improving process
efficiency, thereby reducing overall GHG
emissions particularly in automotive and
construction industries.
Unfortunately, due to unchecked littering,
plastics as a whole get maligned. The
benefits of plastics need to be acknowledged
by encouraging proper collection,
segregation and education. This will ensure
our smooth transition, as a society, towards a
circular economy.
For Reliance, ‘Sustainability’ is not just a buzz
word, it is about how Reliance operates. RIL
strives to promote Circular Economy and
deliver Societal Value. Reliance’s approach
is to innovate, collaborate and educate
communities to help end plastic waste in the
environment:
•
Innovate through circular business
models: 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. During
FY 2018-19, RIL recycled about 2 billion
waste PET bottles, converting it to
products like Recron® GreenGold – one of
the lowest carbon foot-print globally.
Educate (Communication and
Awareness): Reliance continues to
engage with internal and external
stakeholders to educate and improve
ReleXTM Applications
3D PRINTING TECHNOLOGY
Additive Manufacturing, commonly known
as 3D printing, is gaining acceptance
rapidly with increase in number of
proven applications in end-use parts in
various industries. RIL has developed
capabilities to design and print prototypes
as well as end-use parts for Oil and
Gas, Medical, Electronics and Industrial
Tooling industries. RIL is also working on
developing 3D-printable materials out of
RIL’s downstream products such as PP
and PE.
DIGITAL INITIATIVES AND PLATFORM
DIGITAL CUSTOMER EXPERIENCE
• Enhancing user experience and enabling
Sales and Collection transactions on
smart devices
• E2E tracking of Order Fulfilment is
enabled on mobility Platform
• Machine Learning enabled Chatbot for
customers, agents and transporters
• Delivery tracking through IOT enabled
Vehicle Tracking System is implemented
for dedicated fleet
• Collaborative planning through CRM
platform to effectively manage customer
demand
• Mobility apps like approvals, account
management, customer visits to
empower Sales Force for better customer
service
70
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 •
consumer awareness. During FY 2018-19,
the Company carried out awareness
sessions across the manufacturing sites
and also carried out awareness at major
schools in Mumbai.
Collaborate: Reliance engages and
collaborates with governments,
businesses and consumers to drive
effective solutions. For instance, RIL
led participation of Indian Industry at
UNEA-4 Nairobi
Q ILLUSTRATION
Reliance’s Fashion For Earth
launched the ‘Circular
Design Challenge’ at Lakme
Fashion Week with the UN
Environment
Need to reduce waste and implement
circular economy concepts in the fashion
value chain
BEFORE
AFTER
RIL worked with Afroz Shah’s team to
clean up the Versova beach in Mumbai.
RIL sponsored the BobCat to expedite
retrieval of solid waste off the beaches
and from the oceans. This one-of a
kind solution has replaced the need for
manual clean-up drives by volunteers.
It has resulted in a more efficient and
systematic cleanup recovering about
1.5 Million Kgs. of solid waste in 180
days – that much less waste in the
oceans
INITIATIVES HIGHLIGHTS
•
Reliance has 3 plastic-to-roads projects
underway on pilot basis. These
initiatives have helped create solution
for disposal of non-recyclable post-
consumer plastic waste. As a first pilot,
1.2 tonnes of plastic waste has already
been used for construction of 2,600m2
of road in Reliance Corporate Park.
Further, about 50 tonnes of plastic
waste will be used at Nagothane
Manuacturing Division for construction
of 40 km of road.
Action Taken
To incentivise waste reduction
and catalyse adoption of circular
economy in the Indian textile
industry, Reliance, UN Environment
and Lakme Fashion Week,
successfully launched and concluded
the first edition of the ‘Circular Design
Challenge’. The ‘Circular Design
Challenge’ is an annual competition
where fashion and product designers
submit a proof of concept of
creating a fashion collection that
encompasses key principles of
circularity, sustainability, aesthetics
and scalability. First edition of the
challenge was won by Stefano Funari
and Poornima Pande for their brand
‘I was a Sari’.
Scale of Impact
First edition of the Circular Design
Challenge saw over 900 registrations
from over 30 cities across the
country.
Outcome
Through such initiatives Reliance has
helped raise awareness on textile
waste generation and promote the
use of sustainable materials and offer
solutions that are helpful in reducing
environmental impact caused by
waste in the fashion, textile industry.
Circular Design Challenge
BUSINESS STEWARDSHIP
In keeping with the motto of ‘Chemistry
for 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.
71
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Oil and Gas Exploration & Production
P.M.S. Prasad
Naresh Narang
Sanjay B. Roy
FY 2018-19 marked progress on plans
to monetise discovered resources in
deepwaters.
RIL has commenced development
work for R-Cluster and Satellite
Cluster fields in the KG D6 Block.
Field Development Plans for MJ have
been approved by Government.
These fields are expected to come
onstream from mid-2020 onwards.
There has been steady production
from the Coal Bed Methane (CBM)
fields in Sohagpur. Development
activities are underway to further
enhance the production.
Reliance continues to focus on
value preservation in the Shale Gas
business. In this regard, Reliance is
restructuring its Shale Gas assets
through cross-border merger of
RHUSA with RIL.
72
CBM Group Gathering Station
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH
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 deepwater capabilities, coupled
with the knowledge of operations in
unconventional areas such as CBM.
PROJECT
EXECUTION
SAFETY
KG D6 – India’s first and till date only
greenfield deepwater project
CBM – India’s largest surface footprint
hydrocarbon project in remote tribal areas
with no prior infrastructure
Over 11 years of safe operation, with
safety record among the best in the world
since commencement of production in
deepwater block KG D6 and in Coal Bed
Methane
SIGNIFICANT
INFRASTRUCTURE
ON THE EAST COAST
PARTNERSHIPS
RIL has commenced development of
discovered resources in the KG D6 Block
leveraging the existing infrastructure on the
East Coast.
Partnerships with global majors in
conventional as well as unconventional
hydrocarbon plays. The partnerships
combine Reliance’s project execution skills
with global expertise
MARKET ENVIRONMENT
In 2018, global oil demand slowed down
to 1.2 mb/d. Demand growth was largely
driven by growth in USA, China and India.
Oil demand was led by ethane, LPG and
middle distillates while gasoline demand
slowed down. Demand growth was
impacted due to high pump level prices in
USA and other economies. Brent oil prices
strengthened 22% during the year due to
geo-political tensions, supply disruptions
from Venezuela, Iran and Libya as well as
OPEC+ production cuts.
US Henry Hub (HH) gas prices averaged
above US$3/mmbtu and peaked as high
as US$4.8/mmbtu in the second half of
the year. Asia LNG prices strengthened,
averaging around US$9/mmbtu;
however, the prices they remained volatile
throughout the year.
Upstream capital expenditure showed a
rising trend with increased drilling activity
especially in North America.
New exploration is also on the rising trend
although it is yet to return to levels prior
to the price collapse. Global upstream
investment is set to rise for the third
consecutive year and is expected to
increase by 4% in 2019 following higher
than expected spending last year.
INDIAN REGULATORY ENVIRONMENT
During the year, there have been many
initiatives by the Government of India to
promote the Indian Oil and Gas industry.
Open Acreage Licensing Policy (OALP) was
implemented, which provides options for
operators to select exploration areas on
their own. Under OALP Bid Round-I, 55
Blocks were awarded and subsequently,
the Government has launched OALP Bid
Round-II offering Blocks under Petroleum
Operation Contract for International
Competitive Bidding.
WIP
Subsea Structure Foundation Installation
in Deepwater (about 2,000 m WD)
73
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Oil and Gas Exploration & Production
OIL AND GAS PORTFOLIO
Block
Country
Partner
RIL
Stake
JV Acreage
(in acres)
Status
CONVENTIONAL
DOMESTIC
KG-DWN-98/3
India
NIKO–10% (see Note1);
BP–30%
Panna Mukta
India
Mid and South Tapti
India
NEC-OSN-97/2
GS-OSN-2000/1
INTERNATIONAL
Block 39
India
India
Peru
BG–30%;
ONGC–40%
BG–30%;
ONGC–40%
BP – 33.33%
Hardy–10%
60%
3,16,216 1 Producing Fields
Field Development Plan (FDP) approved for R-Cluster, Satellite
Cluster and MJ, Field Development activities underway
30%
2,98,256 Producing Fields. Production Sharing Contract (PSC)
to expire in December 2019
30%
3,63,492 Decommissioning and site restoration activities underway
66.67%
90%
2,05,520 FDP Submitted. Under review with GoI
1,48,263 Declaration Of Commerciality (DOC) reviewed
Perenco–55%;
PetroVietnam -35%
10%
2,13,746 RIL has withdrawn from the PSC. Assignment under approval
with Government of Peru.
UNCONVENTIONAL
DOMESTIC
CBM
SP(East)-CBM-2001/1
SP(West)-CBM-2001/1
INTERNATIONAL
Shale
Pioneer JV
India
India
-
-
100%
100%
1,22,317 Development ongoing
1,23,552 Production started
USA
Pioneer – 46.4%;
Newpek – 8.6%
45%
1,49,128 Producing
Chevron JV
USA
Chevron – 60%
40%
2,18,104 Producing
Notes
1: Post default of Cash Call, RIL-BP issued Default notice to NIKO on October 16, 2018. Since the dues are not cured by NIKO, RIL-BP has issued notice to NIKO to withdraw from
Joint Operating Agreement (JOA) and PSC and assign their Participating Interest (PI) to RIL-BP. NIKO has served a notice of arbitration in response to the withdrawal notice.
The arbitration tribunal has been constituted and proceedings to commence.
2: Reliance and BP sold their stake in onland Block CB10 to Sun Petro.
74
Coal Bed Methane Station
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 FINANCIAL AND OPERATIONAL PERFORMANCE*
Revenues
EBIT
*Consolidated basis
FY 2018-19
(` in crore)
5,005
(1,379)
FY 2018-19
(US$ in million)
724
(199)
FY 2017-18
(` in crore)
5,204
(1,536)
%
Change
(3.8%)
FY 2018-19 revenues for the Oil and Gas segment decreased by 3.8% y-o-y to `5,005 crore.
Volumes from domestic upstream fields and US shale were lower because of natural
decline and slowdown in development activity. Segment EBIT was at `(1,379) crore as
against `(1,536) crore in the previous year. For the year, domestic production (RIL share)
was at 58.9 Bcfe, down 25.4% y-o-y and in US Shale (RIL share), business was 94.5 Bcfe,
down 32% y-o-y basis.
OPERATIONAL PERFORMANCE – DOMESTIC
Production Performance
JV production
KG D6
Oil
Gas
Condensate
PANNA- MUKTA
Oil
Gas
CBM
Gas
Unit of
measurement
FY 2018-19
FY 2017-18
MMBBL
BCF
MMBBL
MMBBL
BCF
BCF
0.26
36.4
0.03
4.1
51.1
12.6
0.75
67.9
0.05
5.4
62.1
7.1
KG D6
KG D6 gas production declined by 46%
for the year to 36.4 BCF due to natural
decline of D1D3 field and cessation of MA
Field in September 2018. KG D6 operations
continue to achieve field uptime of 100%,
which continues to be the global standard
for deepwater facilities. Despite challenges
associated with substantial reservoir
depletion and sand and water influx, the
focus remains on sustaining production
until future projects are commissioned.
Panna-Mukta-Tapti
Panna-Mukta field produced 4.1 million
barrels of crude, a reduction of 24% on
y-o-y basis and 51.1 BCF of natural gas,
a reduction of 18% on y-o-y basis.
The fall in production is due to natural
decline and increasing water cut in the
field, shut in of wells due to integrity
issues and unplanned field shutdown due
to tilting of single buoy mooring facility
by water ingress in July 2018. Loss in
production was partially offset by better
production optimisation and successful
revival of a few wells, which were shut in
due to integrity issues.
The Production Sharing Contract (PSC)
for Panna-Mukta Block is expiring on
December 21, 2019 and necessary
preparations are in progress for handover
of the assets to the Government (i.e. GoI
nominee) on expiry of the PSC.
The ‘Decommissioning Plan for Tapti
Part B Facilities’ is approved by GoI and
the contract for Engineering Preparation
Removal and Disposal (EPRD) has been
awarded. The decommissioning activities
are scheduled to be completed by end
2021.
CBM (Sohagpur East and Sohagpur West)
RIL commenced production from its Coal
Bed Methane (CBM) block SP (West)–in
March 2017. More than 200 wells are on
production, with production averaging
1 mmscmd this year. As CBM Reservoirs
are initially 100% saturated with water,
the wells go through ‘Dewatering Phase’
during initial years of production. In the
dewatering phase of CBM production,
water is pumped out continuously to
increase the gas saturation in the reservoir,
resulting in ramp up of gas production
from these wells. Dewatering process
in RIL’s fields is underway for achieving
further production ramp-up.
Reliance Gas Pipeline Limited, a
subsidiary of RIL, operates the 302 km
Shahdol-Phulpur Pipeline from Shahdol
(MP) to Phulpur (UP). This pipeline
connects the CBM Gas fields with the
Indian Gas Grid.
NORTH AMERICAN SHALE GAS
OPERATIONS
Production Performance
JV
production
Gas
Condensate
Unit of
measurement
BCF
MMBBL
CY
2018
73.8
3.5
CY
2017
111.8
4.7
Business Performance
Reliance is restructuring its Shale Gas
assets through cross-border merger of
RHUSA with RIL, integrating the US gas
resources with the Indian market, as done
with ethane for petrochemicals. This will
allow shale gas assets to benefit from the
expected upcycle in commodities.
The Company continued to focus on
value maximisation of remaining two JVs
through production stabilisation, well
design improvements reflecting latest
completion designs and improving well
inventory through development plan
optimisation and acreage consolidation.
As part of this strategy, the sale of certain
Eagle Ford assets in the Western Eagle Ford
area to Sundance Energy Inc., was closed
during the first half of 2018.
Reliance’s aggregate capital investments
across JVs dropped considerably and was
US$159 million during CY 2018.
For 2019, the thrust remains on preserving
long-term value through high-grading of
land and development portfolio, retaining
75
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Oil and Gas Exploration & Production
optionality, improving execution efficiency
and cost structure.
Operational Performance
At Pioneer JV, drilling and completion
activities commenced at the end of third
quarter of CY 2018 with the objective of
testing wells in a new area. At Chevron
JV, drilling and completion activity
commenced in the second half of
2018 in the JV operated areas, while
activity continued to ramp up, in the
non-operated areas. The joint ventures
drilled 28 wells and put 11 wells on
production.
Gross JV production was about 0.62
BCFe/d for the 2 JVs, down 30% y-o-y.
Reliance’s share of production and
sales were at 94.5 BCFe and 84.0 BCFe,
respectively, in CY 2018, compared to
139.7 BCFe and 121.4 BCFe in CY 2017.
Pioneer JV
At Eagle Ford, development activities
commenced drilling of one pad with 3 wells
to explore a new area in the agreement.
JV drilled only 1 well and did not frack any
well during the year while the production
has been rolled over to 2019. With zero
activity and natural decline of the
existing wells, year average gross JV
production was 21% down at 93 BCFe
compared to 118 BCFe in CY 2017, while
Reliance share of net sales volume was at
38.7 BCFe compared to 47.5 BCFe in
CY 2017. The share of liquids slightly
declined from 67.0% to 66.5% in CY 2018.
Chevron JV
While 2018 was characterised by optimised
cost structure (well costs and Lease
Operating Expenses (LOE)), there was little
progress on JV operated areas, considering
low gas prices that prevailed in early 2018.
With upward trend that prevailed in gas
prices during the second half of 2018,
development activity in JV operated areas
restarted from 3Q CY 2018. There was 1 rig
operating in the JV operated area. There
was also significant progress in non-
operated areas (with very small working
interest) in terms of drilling and wells put
on production.
76
4. Safe Reliable Operations using
Operations Platform – providing real-
time insights into well performance,
production optimisation by monitoring
and modelling physical constraints
across the production systems
BIO-CBM
To increase recovery from CBM fields,
Reliance is 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 the nascent
stage and the initial lab tests have shown
encouraging results with respect to
methane production potential. Future work
Umbilical Installation at Live
Platform (CRP)
Year average gross JV production declined
by 17% to 131 BCFe from 159 BCFe in
CY 2017, reflecting slowdown in JV
operated activity despite improved
operational efficiency and strong well
performance. Reliance share of net sales
volume stood at 45.2 BCFe, compared to
55.0 BCFe in CY 2017.
EXPLORATION OUTLOOK
RIL is in leadership position in exploring
and producing hydrocarbons from
deepwaters off India’s East Coast,
specifically in KG basin through resources
established, produced and variable plays
targeted. RIL has the necessary basin and
play know-how for assessing the petroleum
systems in the area. RIL's strategy aims
to explore prospects that may eventually
leverage existing infrastructure.
Application of new technology played
a pivotal role, extending the data and
interpretation to its technical limits.
BroadSeis and BroadBand technology
application aided to image scanning
deeper targets with improved geological
understanding. Enhancing the data for fluid
contact analysis through optical stacking
has de-risked prospects. Application of
robust pore pressure integrated wellbore
stability models helped in drilling safe and
economic wells.
TECHNOLOGY AND INNOVATIONS
E&P PLATFORM
Aligned with Reliance Enterprise Digital
Vision of 'Reimagining the business model
by adopting platform way of working to
scale-up stakeholders' experience and
value 'E&P's digital vision is anchored
on the following focus areas, judiciously
blending open source technologies and
Original Equipment Manufacturers (OEM)
technologies:
1. Cross Domain Collaboration using
Geo-Technical Platform
2. Collaborative Well Planning and
Drilling Analytics using Drilling
Platform
3. Smart Capital Project execution using
Project Management Platform
Deepwater Pipeline Installation Pipes
being welded at welding stations
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 is planned to establish the ability of this
technology to scale up to a commercial
operation.
Several microbial consortia were
isolated from various locations within
India, screened for methane production
potential and the best consortium is being
optimised.
RIL is leveraging its infrastructure
(advance laboratories), requisite diverse
inter-disciplinary technical skills, CBM
production expertise, CBM fields and
Q ILLUSTRATION
Flare stack inspection with
drones at KG D6
onshore terminal
Flare stack inspections are carried out
to check the healthiness of the system
at regular intervals. The inspection
involves major shutdown of processes,
flare downtime, use of heavy weight
winches, scaffolding erection and the
associated risks.
Action Taken
Safe, reliable and quick inspection of
flare system with minimum human
intervention using drones
Scale of Impact
Elimination of shutdown times,
minimisation of manual intervention,
data accuracy and time and cost
reduction
Outcome
Enabled access to otherwise
inaccessible structures and details,
and actionable information during
shutdown period
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 for the KG
D6 Block (KG D6 PSC). 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 certain gas
price formula and termination of PSC.
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 was initiated by BG Exploration
and Production India Limited and RIL
(together the Claimants) against the
Government on December 16, 2010 under
PSCs for Panna – Mukta and Tapti blocks
due to difference in interpretation of
certain PSC provisions between Claimants
and Government. The Arbitral Tribunal by
majority issued a final partial award (FPA),
and separately, two dissenting opinions in
the matter on October 12, 2016. Claimants
challenged certain parts of the FPA before
the English Courts, which delivered its
judgment on April 16, 2018 and remitted
one of the challenged issues back to the
Arbitral Tribunal for reconsideration. The
Arbitral Tribunal decided in favour of the
Claimants in large part vide its final partial
award dated October 1, 2018 (‘2018 FPA’).
The Government has filed an appeal before
the English commercial court against this
2018 FPA. The Claimants have also filed
an appeal against the 2018 FPA on limited
aspects of the 2018 FPA, which were not
decided in favour of the Claimants. Arbitral
Tribunal is yet to schedule recomputation
of accounts and the quantification phase of
the arbitration, which will take place post
determination of Claimants’ request for
increase in cost recovery limit under the
PSCs. The Government has also filed an
execution petition before the Hon’ble Delhi
High Court under sections 47 and 49 of the
Arbitration and Conciliation Act, 1996 and
Section 151 of the Civil Procedure Code,
1908 seeking enforcement and execution
of the FPA.
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. This suit is still pending adjudication
in the Bombay High Court and the
Company’s fact witnesses in the suit are to
be cross examined by NTPC.
ARBITRATION RELATING TO ALLEGED
MIGRATION OF GAS
GOI sent a notice to the KG D6 Contractor
on November 4, 2016 asking the Contractor
to deposit approximately US$1.55 billion
on account of alleged gas migration from
ONGC’s blocks. RIL, as Operator, for and on
behalf of all constituents of the Contractor,
initiated arbitration proceedings against
the GOI. The Arbitral Tribunal vide its
Final Award dated July 24, 2018 upheld
Contractor’s claims.
GOI filed an appeal on November 15, 2018
before the Hon’ble Delhi High Court, under
section 34 of the Arbitration Act, against the
Final Award of the Arbitral Tribunal and the
appeal is currently pending adjudication
before the Hon’ble Delhi High Court.
WRIT PETITION FILED AGAINST FIR IN
ANTI-CORRUPTION BUREAU
In 2014, four individuals filed a complaint to
the then Chief Minister of the Government
of National Capital Territory of Delhi
alleging collusion between the then
Ministers of the Central Government and
the Company in relation to increasing the
price of gas produced by the Company from
the KG D6 Block. The then Chief Minister of
Delhi had ordered the ACB to register the
FIR and investigate the matter.
77
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Oil and Gas Exploration & Production
The Company has filed a Writ Petition
before the Hon’ble Delhi High Court
questioning the jurisdiction of the ACB in
registering the FIR against the Company.
The Company has contended that the ACB
lacks jurisdiction to file the FIR. The matter
is currently pending before the Hon’ble
Delhi High Court.
LCIA ARBITRATION FILED BY NIKO
(NECO) LIMITED (NIKO)
Due to Niko’s failure to pay the cash
calls issued by RIL as Operator of KG D6
Block pursuant to the terms of the Joint
Operating Agreement (JOA), RIL and BP
issued a Notice of Withdrawal to Niko
in terms of the JOA requiring Niko to
withdraw from the KG D6 PSC and JOA.
Thereafter, Niko has initiated arbitration
proceedings against RIL and BP on
December 19, 2018 and the arbitration
tribunal has been constituted.
PROJECT UPDATE
KG D6
Reliance commenced the development of
three deepwater fields, R-Cluster, Satellite
Cluster and D55 (MJ) fields. First gas from
R-Cluster is expected by mid-2020 followed
by Satellite Cluster and MJ fields over
the next two years. These projects are
estimated to contribute upto 20% of India’s
domestic production, which will reduce
India’s energy import dependence.
underway which is expected to commence
in FY 2019-20.
Reliance has rich project execution
experience, including knowledge
in deepwater oil and 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 and
service provider market.
For R-Cluster development, all contracts
have been awarded and engineering
and fabrication activities are ongoing.
Drilling and completion activity for six
development wells commenced during
the year. Majority of materials / equipment
have been delivered and first offshore
installation campaign has been completed
successfully.
For Satellite Cluster development, contracts
have been awarded. Detailed engineering
and manufacturing of Subsea Production
System (SPS) is in progress. Well planning
and preparation for drilling campaign is
underway, which is expected to commence
in FY 2019-20.
For MJ field development, contracting of
long lead items is underway. Well planning
and preparation for drilling campaign is
To accrete hydrocarbon resources,
infrastructure led exploration efforts are
being pursued in the proven petroleum
play fairways. These pursuits would benefit
from the existing world class deepwater
infrastructure.
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 100 wells along
with an additional gas gathering station
and associated water gathering stations for
collection and processing of CBM Gas and
water respectively. Phase II development
activities are in advanced stage and is
expected to come online in the second half
of FY 2019-20.
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.
Fabrication of Subsea Structure
Subsea Structure Foundation Installation
78
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Q ILLUSTRATION
Green Cover
Medical camp
Women
Empowerment
Promoting education
in rural areas
Improved child
health
Action
Enhanced livelihood
opportunities for 100
widows at Pedavalasala
village by promoting
and creating awareness
about backyard poultry.
Comprehensive health
check-up camp was
organised and prescribed
medicines distributed
to reduce incidence
of communicable and
seasonal diseases by a
20 member–specialist
doctors’ team.
1,500 coconut trees
planted at Gadimoga
panchayat and
Bhairavapalem,
Theerdalamondi and
Dariyalatippa villages
on the occasion of
Gandhi Jayanti and
women members were
mobilised to safeguard
the trees after plantation
at identified households
as a part of community
ownership.
Commemorating
birth anniversary of
Reliance’s Founder
Chairman Shri Dhirubhai
H Ambani, district
Level quiz competition
is being organised
by RIL covering all
schools across the East
Godavari District, Andhra
Pradesh since 2010 with
participation from over
2,200 students from 550
schools.
As a part of community
connect, two anganwadi
centres Katkona and
Lalpur have been
adopted by teams of RIL
employees and their
spouses. The teams
work towards the basic
health and nutritional
supplements to children
with provisions of
sport materials at the
centres, and promoting
awareness on health and
hygiene.
Scale of Impact
Generating employment opportunities for communities and
ensuring healthy employee-community engagement
Employee Social Responsibility has resulted in communities extending
their co-operation and assistance for the project
Outcome
79
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Retail
Subramaniam V.
Brian Bade
Damodar Mall
Akhilesh Prasad
Shawn Gray
Darshan Mehta
Sunil Nayak
Kaushal Nevrekar
Ashwin Khasgiwala
Reliance Retail has effectuated a
consumption boom in the country,
taking organised retail to the smallest
of towns and making it accessible to
middle class customers in India.
Reliance Retail continues to deliver
remarkable results as it nearly
doubled its revenues and tripled its
profits in FY 2018-19. Reliance Retail’s
inclusion in the list of top 100 global
retailers* is a testimony of its growth
and depicts the trust of consumers.
With 10,415 retail stores, presence in
6,600 plus towns and cities and
22 million sq. ft. retail space, Reliance
Retail is the largest retailer in India.
Reliance Retail is committed to its
ethos of shared prosperity–making a
difference to the life of every Indian.
Reliance Retail continues its journey
of making shopping enjoyable for the
entire family.
* Global Powers of Retailing 2019, Deloitte
80
Menswear focused apparel store
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH
DIVERSIFIED PORTFOLIO OF
STORES ACROSS VARIOUS
CONSUMPTION BASKETS
Reliance Retail has developed and
strategically positioned a wide array of
stores with a mindset 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.
SERVING THE
UNDERSERVED MARKETS
PARTNER OF
CHOICE
Reliance Retail has been expanding at
the rate of 4 stores every day for the last 5
years, penetrating into markets unserved
and underserved by organised retail. It
enjoys a first mover advantage in many
cities.
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.
ADAPTIVE /
RESPONSIVE
CUSTOMER FOCUSSED
ROBUST ECOSYSTEM
MULTI-CHANNEL
STRATEGY
Reliance Retail operates on a framework
that fosters rapid adaptation to the 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 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 adopted a
multi-channel strategy and has
integrated ‘offline-online’ models to truly
differentiate the customer experience.
Destination Supermarket
81
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Retail
RELIANCE RETAIL OPERATING MODEL
BUYING
VENDOR ECOSYSTEM
Comprehensive network of vendors
from farmers to large enterprises
MOVING
Efficient and seamless supply: Direct
delivery to stores from chain network, fleet of
vehicles and logistic partners
Direct delivery to stores from suppliers in
select cases
SELLING
CHANNEL ECOSYSTEM
Providing anytime, anywhere, shopping
experience through stores, e-com, connected
kiosks and catalogue sales; after sales service
through ResQ and dedicated customer care
Buying
Moving
Selling
Design & develop solutions
Need gap and planning
Data analytics
NEED GAP AND PLANNING
DESIGN & DEVELOP
SOLUTIONS
DESIGN ECOSYSTEM
Combination of inhouse and
external design support for
product development
DATA ANALYTICS
CUSTOMERS
Serving individuals, kiranas,
hotels, restaurants, caterers and
B2B customers; engagement
through loyalty porgramme,
enriching shopping experience
through consumer insights
Leveraging technology backbone
across entire value chain and
integrated IT systems
Inhouse engineering, procurement
and construction team supporting
rapid expansion
People — microservices
organisation with defined roles and
responsibilities
MARKET OVERVIEW
India’s retail market is estimated at around
US$700 billion in 2017 and is expected to
grow at a CAGR of approximately 12% over
the next 4 years to reach around US$1,100
billion by 2021. The penetration of organised
retail market is estimated at 9% in 2017
and is expected to grow to 13% by 2021.
The organised retail market is estimated at
around US$67 billion in 2017 and is expected
to grow at a CAGR of approximately 21%
over the next 4 years to reach around
US$145 billion by 2021.
Food and grocery, apparel and accessories,
jewellery and consumer electronics together
contribute 88.8% of organised retail market
in 2017. Reliance Retail has established
large presence across these categories to
serve market opportunity and transform
the retail landscape in India.
The strategy and business model of
Reliance Retail has consistently helped it
outpace the growth of organised retail and
it is fully geared up to be able to continue
this growth momentum in future.
BUSINESS OVERVIEW
Reliance Retail is engaged in the business
of retailing products and services across
five key consumption baskets: a) Fashion
and Lifestyle, b) Consumer Electronics,
c) Grocery, d) Petro Retail and e)
Connectivity. Under each consumption
basket, Reliance Retail operates multiple
customer centric store concepts that
provide superior customer experience,
focused assortment, attractive price value
proposition and best quality products.
Reliance Retail operates one of the most
extensive retail store networks in the world
backed by committed and well trained
manpower, robust infrastructure backbone
and an integrated value chain. Reliance
Retail has created an ecosystem that
connects producers and manufacturers to
consumers seamlessly in over 6,600 towns
and cities of India through its 10,415 stores.
82
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19
FASHION AND LIFESTYLE
The organised apparel, accessories and
footwear market is estimated at around
US$16 billion in 2017 and is expected to
more than double to around US$35 billion
by 2021. Organised retail penetration
in apparel and accessories category is
estimated at approximately 24% and
in footwear category, it is estimated at
approximately 27%. This is expected to
grow to in the range of 37% and 31%,
respectively by 2021.
Reliance Retail is the largest fashion
retailer in India with 1,769 stores across
350 cities. Reliance Retail operates multiple
speciality store concepts, which cater to
all income segments ranging from value to
mid segment and premium to luxury.
Trends is Reliance Retail’s flagship fashion
concept positioned in the value segment
and built on the principle of democratising
fashion for aspiring Indian consumers.
It is India’s largest apparel destination
with over 670 stores across 350 cities.
Trends stores are spread across malls,
high streets and city centres connecting
with customers in best settings. Trends
is a multi-brand store concept offering
national and international brands. Trends
has developed a strong portfolio of in-store
brands such as Avaasa, DNMX, Netplay,
Performax, Teamspirit, etc. to cater to
the diverse tastes and preferences of
customers. Many of these brands have
shown tremendous acceptance with
customers and have grown up to match
in size and scale equivalent to established
national brands. In-store brands contribute
over 70% to Trends revenues.
RELIANCE RETAIL FASHION LANDSCAPE
FASHION PYRAMID
y
r
u
x
u
L
y
r
u
x
u
L
e
l
b
a
d
r
o
ff
A
i
m
u
m
e
r
P
m
a
e
r
t
s
n
i
a
M
e
u
l
a
V
83
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Retail
The ability of Trends stores to cater to
an ever increasing number of customers
comes from its vertically integrated
operating model which, allows it to control
the entire fashion value chain. Trends has
set up in-house design studios, which,
supplemented with international design
houses, generates new designs on a regular
basis. Trends sources its own fabric and
gets the designs manufactured through
hundreds of vendor partners across India
and international markets. This translates
into fresh fashion across stores on a regular
basis.
Reliance Footprint is a leading multi-brand
footwear chain offering over 50 prominent
international, domestic and in-store
brands. The store provides offers wide
collection of products across footwear,
luggage, handbags and accessories.
The stores offers high quality products
at attractive value proposition, making it
a destination for all footwear and travel
needs.
‘Project Eve’, is a unique and first of its kind
experiential store concept that caters to
the entire fashion and lifestyle needs of
women. Positioned in the mid to premium
segment, the store offers apparel, beauty
and cosmetics, accessories, footwear,
in-store salon and a café, all under one
roof to address entire fashion needs of
a woman. Since its launch in July 2017,
Project Eve has now scaled to 20 stores
across major cities.
Reliance Jewels is a leading premium
jewellery chain, offering a wide range of
fine jewellery. It offers exquisitely crafted
gold, diamond, bridal jewellery, ornaments
for special occasions as well as daily wear
with a profuse mix of traditional and
contemporary designs. The stores provide a
delightful customer experience guaranteed
by a promise of 100% purity in quality and
transparency in prices. Reliance Jewels has
an inhouse design team and a dedicated
production facility enabling it to exercise
complete control over superior crafted
jewellery sold through its stores.
Reliance Brands works with international
brands in the premium to luxury segment
with a focus on apparel, footwear and
lifestyle categories. With a portfolio of over
40 revered international brands, Reliance
Brands operates the largest portfolio of
premium and luxury brands in India.
Over the years, Reliance Brands has
emerged as a partner of choice for best
international brands. Reliance Brands
operates the largest store network of
international retail brands in India with over
400 stores.
AJIO is a curated fashion platform offering
the trendiest and most unique styles from
across India and the world. It features over
500 national and international brands
alongside an in-store brand collection under
the name ‘AJIO’. AJIO operates a digital
ecosystem and democratises fashion for
consumers across India. AJIO operates
on an omni-channel model by providing
anytime anywhere shopping to consumers.
It leverages many of its partner brands’
network of stores to serve consumers
84
Curated Fashion and lifestyle
Reliance Digital–Personalising Technology
through kiosks, fulfil orders, facilitate
returns, replacement and refund. AJIO
delivers products across 17,800 PIN codes.
CONSUMER ELECTRONICS
The organised consumer electronics
market is estimated at US$11 billion in
2017 and is expected to more than double
to US$26 billion by 2021. Organised retail
penetration in the consumer electronics
category is estimated at 27% and is
expected to grow to in the range of 35% by
2021.
Reliance Retail operates Reliance Digital,
the largest consumer electronics speciality
retail chain in India with 357 stores
across 166 cities. Reliance Digital offers
a wide range of technology products
and consumer electronics from mobiles,
laptops, cameras to large appliances such
as UHD TVs, Air Conditioners, Washing
Machines and much more. Reliance Digital
stores are located on high streets and
malls, serving technology needs of all age
groups, including millennials to Generation
Z and income strata across households.
Personalising technology for every Indian,
Reliance Digital is transforming the way
India shops for technology products
and consumer electronics by providing
product experience zones, wide range
of assortment across 200 national and
international brands, quality service
through ResQ, supported by trained and
knowledgeable staff and much more.
Reliance Digital has a wide portfolio of
in-store brand products under 'Reconnect',
'JioPhone' and 'LYF' brands. The brands are
built on the premise of product innovation,
unmatched user experience, superior
quality and give customers a wider choice
of products that serve their needs.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Reliance SMART is the destination
supermarket store, dealing in fresh foods,
staples, items of daily needs, home and
personal care items, apparel and general
merchandise with attractive price-value
proposition. Reliance SMART operates 154
stores across 96 cities.
Reliance SMART stores are operated across
key cities in high traffic areas such as
residential catchments, city centres,
malls, etc. with a focus to serve every
household’s recurring food and non-food
consumption. The stores operate on an
everyday low-price strategy and promises
365 day savings with a minimum 5%
discount on maximum retail price (MRP) of
the products, attractive promotions and a
wide variety of products to choose from.
Reliance Market is the largest chain of
cash and carry stores serving thousands
of kirana, hotel, restaurants and catering
(HORECA), small and medium institutional
partners and households across fresh
foods, FMCG products, staples, non-food
and general merchandise items. It operates
46 stores across 42 cities.
The core business model of Reliance Market
is to serve all kinds of small / large market
participants across the trading value chain
through efficient sourcing and distribution,
including last mile distribution to
member partners.
With a focus to provide quality produce to
consumers at affordable prices, Reliance
Retail has developed in-store brands, which
provide a wide range of offerings across
various categories such as staples, food,
FMCG, home and personal care and general
merchandise. Best Farms, Good Life, Masti
Oye, Kaffe, Enzo, Mopz, Expelz, Home One,
Graphite, RelGlow, etc. are some of the
brands that have developed a strong liking
by consumers. These brands are available
across Reliance Fresh, Reliance SMART and
Reliance Market stores.
Reliance Retail operates on a farm-to-fork
grocery value chain. It directly partners
with a large number of farmers and small
vendors, which ensures and enhances
quality of produce through ground level
support, reduction in wastages and quicker
movement of produce to consumers,
thereby benefiting all.
PETRO RETAIL
Reliance Retail operates 516 owned Petro
Retail outlets. These outlets are spread
across India with a focus on serving highway
corridors between major cities.
Reliance Petro Retail outlets yield
significantly higher volumes than industry
average led by efficient processes,
technology backbone and well-trained
employees. It offers diesel, petrol and LPG to
its customers with a focus on serving clean
and pure fuel.
CONNECTIVITY
Reliance Retail works as the Master
Distributor for Jio connectivity services.
The distribution network comprises over
7,600 Jio stores. These in turn work with over
1 million retailers across the country for new
customer acquisition and recharges.
ResQ is Reliance Digital’s service arm
and India’s only ISO 9001 certified
electronics service brand. ResQ
provides multi-brand, multi-product
service, including installation, repairs,
maintenance and comprehensive ResQ
care plans to consumers, thereby providing
a one stop solution to consumers.
Jio Store is a small store concept offering
range of mobility, connectivity and smaller
sized tech products such as mobiles,
laptops, cameras, memory cards, etc.
It acts as an interface for providing
Jio’s connection, recharge services and
resolving customer concerns. These stores
are located in high traffic areas such as
high streets, commercial complexes, etc.
across 6,600 plus towns and cities in India.
Jio Stores leverage this deep-rooted
reach by depicting, demonstrating and
selling Reliance Digital’s catalogue of
consumer electronics and technology
products to consumers. Nearly 10%
of Jio Stores’ revenues come through
catalogue sales. Thus, it fills the much
needed demand-supply gap for consumers
based in remote pockets of India, thereby
enabling the ease of living for every Indian.
GROCERY
The organised food and grocery market
is estimated at US$16 billion in 2017
and is expected to more than double to
US$41 billion by 2021. Organised retail
penetration in the food and grocery
category is estimated at 3% and is
expected to grow to in the range of 6%
by 2021.
Reliance Fresh is India’s leading chain of
neighbourhood stores with 378 stores
across 57 cities. Rated as India's Most
Trusted Grocery Brand by Brand Trust
Report 2018, Reliance Fresh offers fresh
fruits and vegetables, staples, cereals,
and items of daily needs to consumers at
attractive prices with a focus on providing
quality produce.
Reliance Fresh stores are placed in
residential neighbourhood catchments,
which gives it the ability to reach out to a
set of customers and serve them for their
daily needs.
Reliance SMART
85
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Retail
INTEGRATED VALUE CHAIN
Behind all of Reliance Retail’s stores and omni-channel initiatives is its integrated value chain that connects farmers, small producers,
manufacturers, national and international brands to consumers through its pan-India presence of stores, B2B ecosystem and service network.
RELIANCE RETAIL INTEGRATED VALUE CHAIN ACROSS MULTIPLE CONSUMPTION BASKETS
FIBRE TO WARDROBE FASHION VALUE CHAIN
Design and Sourcing
Own team
Design houses in India
and abroad
Fabric procurement:
Buying offices in India and
abroad, buying from village
and cottage industries,
small and big enterprises
Contracted capacity
with hundreds of vendor
partners, regional
producers
Controlling quality
of products through
inspection and lab tests
Robust planning from
demand to design
Integrated network of
distribution centres and
transport fleet
Network of supply chain
and logistics partners
Ensuring fresh fashion
at stores
CONSUMER ELECTRONICS VALUE CHAIN
Strong partnerships with over 200 national and
international brands – enabling exclusive and
latest products, building customer experience
zones
Research and
product design
teams building
compelling portfolio
of in-store brand
products
Robust demand
and inventory
planning, ensuring
latest products are
available at stores
every season
FARM TO FORK GROCERY VALUE CHAIN
Integrated network
of distribution
centres and
transport fleet
ResQ’s express
service and support,
network of service
partners–timely
delivery and
installation
Network of farmers,
growers, producers
and small scale
industries. Access to
agriculture produce
markets
Buying from FMCG
majors, small and
large enterprises.
Arrangements with
vendor partners
for developing and
sourcing in-store
brand products
Integrated network
of collection centres,
distribution centres,
cold storage and
transport fleet
Leveraging
sophisticated tools
for demand planning
and inventory
replenishment
Ensuring availability
of fresh food at stores
throughout the day
Leveraging store
network, delivering
products to the
doorsteps of
consumers across
select cities
86
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19
FINANCIAL AND OPERATIONAL PERFORMANCE
Parameter
Revenue
PBDIT
PBDIT Margin (%)
EBIT
EBIT Margin (%)
Reliance Retail achieved a turnover of
`1,30,566 crore in FY 2018-19, an increase
of 88.7% y-o-y. The business delivered
an EBIT of `5,546 crore for FY 2018-19,
more than doubling over previous year.
Core Retail (excl. Connectivity, Petro-Retail)
PBDIT margin improved to 7.0% vs
6.0% last year.
Reliance Retail operated 10,415 retail
stores in over 6,600 towns and cities
covering an area of 22 million sq. ft. as
on March 31, 2019. Additionally, Reliance
Retail operated 516 petro retail outlets as
on March 31, 2019.
BUSINESS PERFORMANCE
Reliance Retail witnessed resilient growth
across all consumption baskets during
FY 2018-19. It continued accelerated
expansion of stores and operationalised
more than 2,800 stores across all
consumption baskets during the period.
A record of over 500 million footfalls was
received during the period, a growth of
44% y-o-y.
REVENUE MIX–FY 2018-19 (%)
10.2
33.5
17.9
30
8.4
Grocery Consumer Electronic
Fashion and Lifestyle
Connectivity Petro Retail
Reliance Retail operates more stores than
any other organised retailer in India.
The FY 2018-19 revenue and profits
FY 2018-19
(` in crore)
1,30,566
6,201
4.7%
5,546
4.2%
FY 2018-19
(US$ in million)
18,880
897
4.7%
802
4.2%
FY 2017-18
(` in crore)
69,198
2,529
3.7%
2,064
3.0%
% change in
y-o-y
88.7%
145.2%
168.7%
of Reliance Retail demonstrates the
leadership position it has established in
the market. Reliance Retail’s growth is not
only noticeable in the Indian context but
also at a global scale. Reliance Retail has
been ranked as the 6th fastest growing retail
company in the world and features 94th
in the list of Global Powers of Retailing by
Deloitte based on FY 2017-18 revenues.
During the period, Reliance Retail formed
several long-term strategic partnerships.
These partnerships add significant value to
its offerings across all consumption baskets.
• Partnership with Disney to develop and
market co-branded (Disney and Reliance
in-store brand) SKUs across various
categories such as food, fashion, toys and
much more
• Reliance Brands formed an exclusive
partnership with Mothercare, UK
along with the purchase of the current
Mothercare India business
• Genesis Luxury Fashion and Genesis
Colors, which became a subsidiary of
Reliance acquired exclusive rights for
Salvatore Ferragamo, an Italian luxury
brand
• Reliance Brands announced a partnership
with Replay Jeans, Italian leader in the
premium denim segment
• Reliance Brands announced a partnership
with Williams-Sonoma to bring Pottery
Barn, Pottery Barn Kids and West Elm to
India
In Fashion and Lifestyle, Trends witnessed
strong growth backed by accelerated store
expansion and strong same-store sales
growth during the period. Trends continued
its mission to democratise fashion across
India. More than 2/3rd of Trends stores
are now serving Tier II and III cities and
generating strong growth from these
markets.
During the period, Trends rolled out 65
small town Trends stores, thus further
penetrating in to Tier III/ IV towns. The
concept has received encouraging
response from consumers, paving way
for its expansion. Trends Man and Trends
Women concepts continue to gather
strong traction from consumers and have
expanded to 10 stores and 21 stores,
respectively. Trends is the largest and
fastest growing fashion retail chain in India
and has opened more than 125 new stores
during the period.
During the period, Reliance Retail acquired
from ITC Limited all rights, title, interest,
trade-marks and intellectual property in
the brand ‘John Players’. John Players
is a mid-segment menswear brand with
national presence.
The curated online fashion destination
AJIO continued to grow with strong
customer traction during the period.
It features more than 1,30,000 options and
witnessed nearly 2/3rd revenue from repeat
customers. AJIO mobile app continues to
be one of the top shopping apps on
Google Play Store and Apple iStore with
over 12.7 million app downloads during
the period.
AJIO implemented omni-channel
initiatives during the period whereby 555
Trends stores were integrated for online
order fulfilment, return and refund. AJIO
also launched AJIO Gold during the period,
which offers a collection of premium and
luxury brands such as Superdry, Steve
Madden, Dune, DC, Scotch and Soda, Gas,
and many more.
Reliance Brands launched a new
multi-brand store ‘The White Crow’
featuring brands like Diesel, Marc Jacobs,
Onitsuka Tiger, etc. The White Crow is a
destination store for the world’s finest
international brands.
87
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Retail
Reliance Jewels opened over 80 stores
during the period. It now operates 143
stores / Store-in-Stores (SIS) pan India.
In Consumer Electronics, Reliance Digital
witnessed strong growth driven by robust
customer demand, wider coverage,
effective marketing communication and
rapid store expansion during the period.
It continued to outpace the market growth
across key categories of mobiles, laptops,
UHD TVs, Air Conditioners, Washing
Machines, etc. Reliance Digital continued
to delight customers by upgrading store
environment to enhance customer
experience, aggressive opening price
points and focused promotions.
In Grocery, Reliance Retail witnessed
strong growth across staples, fruits and
vegetables, home and personal care,
confectionery and snacks and general
merchandise categories. It strengthened
in-store brand portfolio with new product
launches across food FMCG, home
and personal care, staples, luggage,
disposables and stationary categories.
A glimpse of new product launches is
depicted in the below image. Reliance
Market saw strong growth backed by
growth in business with Kirana and
HORECA members.
OUTLOOK
With the world’s largest millennial
population embracing digitisation, social
media and technology, India’s retail
trade has no longer remained a mere
buy-move-sell architecture. It is imperative
that retailers deploy sophisticated tools
such as artificial intelligence, analytics,
automation, etc. to identify existing
need gaps, foresee future requirements,
design and develop ‘solutions’ than just
products to address demands of aspiring
consumers, follow up and periodically
assess the consumer feedback.
Reliance Retail is rightly positioned to
exploit this opportunity and transform
the retail landscape in India. Reliance
Retail has been growing at a rapid pace
with revenues growing over 7 times and
EBITDA growing over 14 times in the last
five years. Reliance Retail aims to continue
this journey of rapid growth. Following key
drivers will form growth pillars as business
marches ahead:
a. Continued expansion of physical store
presence
Reliance Retail has opened more than
10 stores a day over the last 2 years to
cross 10,415 stores across 6,600 plus
towns and cities with careful planning
and execution. This provides Reliance
Retail a first mover advantage across
so many Tier 3 and Tier 4 towns.
Reliance Retail will continue to invest
in expanding the existing store network
across all consumption baskets.
b. Integration of online and offline
channels connecting everyone,
everything, everywhere
To further supplement the reach of
physical stores, Reliance Retail has
created an online channel for its
consumer electronics and fashion and
lifestyle businesses. The physical stores
are now being equipped with kiosks
so that consumers can browse endless
aisles and shop for products which may
not be readily available at stores. Stores
are also being equipped to handle
delivery, return, replacement and refund
to provide anytime, anywhere shopping
experience to consumers. Reliance
Retail will further develop and enhance
core capabilities such as mobile
apps, social media linked interactive
app features, delivery and fulfilment
infrastructure, etc. to provide superior
omni-channel solutions to connected
and mobile consumers across all
consumption baskets.
c. Strengthening in-store brand portfolio
Developing a set of robust in-store
brands across consumption baskets
and its acceptance by consumers will
provide Reliance Retail an edge in terms
of generating sustainable demand,
growing revenues and improving
profitability. The growing market
opportunity provides tremendous
potential to create wider portfolio of
in-store brands across multiple
categories, which can serve consumers
through Reliance Retail’s physical
reach and distribution. Reliance Retail
would continue to innovate with
in-store brands through a solution-
based approach to share increased
value with its supply partners and
customers.
d. Enhancing customer experience
Reliance Retail operates with a vision
to be the most admired and successful
retailer that enhances the quality of life
of every Indian. With this ethos, Reliance
Retail has always endeavoured and will
continue to provide superior customer
experience through continuous
improvements in store environment
and create consumer focused store
concepts.
88
In-store brand products
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19
Further, Reliance Retail aims to enhance
its core capabilities, including leveraging
customer insights through use of
sophisticated tools and much more to
cater to the ever increasing demand of
surging India and consolidate its market
leadership across all consumption
baskets and store concepts.
BUSINESS STEWARDSHIP
Reliance Retail operates its business
keeping societal well-being as a key
objective. Few of the social initiatives that
demonstrate how Reliance Retail is making
a difference to the society are captured
below:
• People with disabilities usually find it
extremely challenging to get jobs in
India. However, Reliance Retail employs
over 1,000 Persons with Disability (PwD)
in various roles at store level. PwD
employees bring immense potential and
value to the workplace and their attrition
rate is the lowest in the Company. The
Company has laid down focused hiring
strategies to ensure steady growth of
these numbers.
• Urbanisation has been on a rise in India
as more and more people from small
towns are migrating to larger cities in
search of work opportunities. With the
spread of Reliance Retail store network
in 6,600 towns and cities, Reliance
Retail has been able to create work
opportunities in thousands of small
towns and spread avenues of livelihood
for such families.
• Reliance Trends’ leading position in
India’s fashion apparel market is backed
by its ‘Make in India’ commitment.
This year, Trends sourced more than
3 crore metres of fabric from Indian
producers. Reliance Trends works
closely with over 400 vendors across
India, providing them with committed
volumes, educating them on modern
manufacturing techniques and
supporting them to enhance productivity
and quality.
Q ILLUSTRATION
DIVERSITY, EQUITY AND INCLUSION
Reliance Retail’s HR policies carry an agenda for Diversity, Equity and Inclusion across three pillars of Employment, Engagement
and Empowerment.
Employment
Engagement
Empowerment
Action
Action
Action
Reliance Retail is an equal opportunity
employer, employing without any
discrimination with respect to age,
gender, caste or disabilities. Furthermore,
the Company celebrates diversity
and promotes inclusivity through
several leadership programmes such
as 'Saksham' for PwDs and 'Jagriti' for
female employees
Rigorous employee training of 1-3 weeks
covering all SOPs/Processes before
joining the shop floor; focused leadership
development and step-up programmes
for employees and particularly for
women; same training and benefits for all
employees including PWDs
Launching Womens Resource Groups
(WRG), which are steered by senior
women colleagues to guide and mentor
women through their careers, mentoring
young mothers returning from maternity
breaks
Impact
Impact
Impact
As of March 31, 2019, Reliance Retail
has 22% women employees pan India,
over 1,000 PwD employees ; offered
employment to nearly 40,000 unskilled
resources during FY 2018-19
24 women taking over store leadership role
in Reliance Fresh, Reliance SMART
and Reliance Market
Promoting and empowering women in
the workplace
Outcome
Equal opportunity, fairness and equity
in employment practices, which ensure
customer satisfaction
Outcome
Attrition dropping by 33% and customer
complaints reducing by 50%
Outcome
Safety and security for women and PwD
staff in all locations
89
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Digital Services
Sanjay Mashruwala
Mathew Oommen
Pankaj Pawar
Kiran Thomas
Harish Shah
Jyotindra Thacker
Anish Shah
Anshuman Thakur
Rajneesh Jain
V. Sridhar
Ashish Lodha
Shyam Mardikar
Anuj Jain
Prateek Pashine
Aayush Bhatnagar
Jio is the fastest growing digital company globally with
306.7 million subscribers as of March 31, 2019. Among
the many accolades it has received since inception, Jio
was ranked as the top company globally on Fortune's
'Change The World' list that ranked companies that have
helped the planet and made an important social impact.
The whole-hearted acceptance of Jio’s digital services is
evident from over 3 Exabytes per month of data that is
carried on its wireless network.
Jio has been the key catalyst in the creation of a
broadband data market in India and is now ranked
#1 amongst mobile telecom operators in the country
by Adjusted Gross Revenue (AGR). Following up on its
success in wireless, Jio is now aiming to catapult the
wireline infrastructure and services in India to global
standards, with the launch of its FTTH and Enterprise
services. Jio continues to build a digital ecosystem
spanning across media and entertainment, commerce,
financial services, education, healthcare and agriculture
through group affiliates.
Jio remains committed to the Digital India campaign
with focus on providing world class digital services at
affordable prices to every citizen of the country.
90
Connecting lives through JioPhone
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 STRATEGY AND VISION
Jio is determined to connect everyone and everything, everywhere – always at the highest quality and the most affordable price. In this
context, the strategy and vision is to completely digitise the customer lifecycle. Through platforms held by group affiliates, Jio will offer
not just connectivity solutions but also services across media and entertainment, commerce, financial services, education, healthcare
and agriculture.
COVERAGE
DATA
QUALITY
AFFORDABILITY
AGILITY
Average per capita data
consumption on Jio’s
networks is nearly
11 GB per month with
potential upside from
new use cases coming
up every day.
Affordable and simple
pricing plans have been
the key to the large-scale
adoption of Jio services. Jio
has been able to offer these
on the back of superior
technology based operating
efficiencies, enabling it to
offer services at the most
affordable price.
India has been a supply
constrained market
with limited network
infrastructure. Jio
offers services on an
all-IP, LTE network with
best-in-class customer
service, easy app-based
customer interaction
for query resolution and
recharges, and AI based
bots to provide seamless
onboarding and service
experience.
Jio’s adoption of agile
model while developing
its systems has
supported its ability to
scale and adapt in an
orderly manner.
The same was
demonstrated post
discontinuation of
Aadhar based e-KYC.
Jio implemented the
alternative digital KYC
process seamlessly in a
timely manner, without
affecting its operations.
Coverage refers to
anytime, anywhere
mobile broadband
access. Jio’s 4G coverage
at present is greater
than 2G coverage
in India and is fast
approaching its target
of 99% population
coverage. This coverage
is backed by pan India
4G spectrum across
three bands and the
best fiber and tower
infrastructure in the
country, providing the
best network experience
and farthest reach.
Media and Entertainment
Commerce
Education
Healthcare
Agriculture
JioTV
JioCinema
JioSaavn
JioNews
Network18
BookMyShow
O2O platform
Enable 20 million small
merchants to compete
with organised retail
Data Analytics and AI for
consumer insights
Digitally enabled
education to overcome
infra challenges
Connect 58,000 colleges
and 1.9 million schools
Infra for 200 million
children in 2 years
Overcome deficit of
physical infra
Telemedicine,
Tele-radiology,
e-Diagnostics, Genomics
Long gestation
opportunity
Combine digital tools
with wisdom of farmers
Tech for water
conservation, soil
management, precision
farming
BEST IN CLASS CONNECTIVITY
91
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Business Performance
Digital Services
MARKET ENVIRONMENT AND
OUTLOOK
Adoption of VoLTE – India now has over
500 million mobile broadband data
subscribers, buoyed by Jio’s entry and
subsequent adoption of its services.
Jio’s VoLTE offering on its fully dedicated
IP-networks has prompted an industry
wide transition from Circuit Switched
technology to VoLTE (Voice over LTE), and
deeper penetration of 4G networks. Device
ecosystem too has seen a transition with
100% of the smartphones shipped into
India now being 4G enabled.
Data upsurge – Adoption of LTE and
improving device ecosystem has led to
a transition in data consumption trends,
with more than 90% of wireless data in the
country carried on 4G network now. There
has also been a surge in video usage with
70% of all data traffic on Jio network being
used for video.
A combination of increasing device
and network penetration, and higher
affordability is likely to result in further
increase in data demand across wireless
networks in India. As per data in the Cisco
VNI report, mobile data in India is expected
to grow 9x during FY 2017-22. Government’s
strong policy framework and push towards
‘Digital India’ is helping in this rapid
transition towards digital economy and
society.
Regulatory impact – From regulatory
perspective, TRAI had set a definitive path
towards eliminating Interconnect Usage
Charges (IUC) with effect from January
1, 2020. This will hasten the adoption of
more efficient technologies like VoLTE,
which have a negligible cost for carrying
and servicing essential voice services. Jio
has been a pioneer in the rollout of digital
technologies and this sets a clear path
forward for an industry wide rollout.
TRAI has also set the ball rolling for 5G
spectrum auctions in India with availability
in newer frequency bands like 700 MHz
and 3,300-3,600 MHz. Jio with its 5G
ready network would play a key role in
development of the 5G ecosystem in the
country, based on market dynamics.
92
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Data Localisation – Jio has been a strong
supporter of local storage of data, which
is critical for national interest and security
given the increasing sophistication of
cyber-attacks. Data localisation will also
spur investment in creating server and
cloud capacity in India, incentivising
research and development and creating
employment in line with the Government of
India’s 'Make in India' initiative.
Jio believes that Indians are the true
owners of their data and the ownership
should not be transferred to any corporate
entity. Without the consent of the user,
no data should be collected, processed or
used by any corporate. This would require
a regulatory framework to ensure that
corporates are taking adequate measures
to ensure data protection.
Wireline networks – Wireline remains a
huge opportunity in India, given that fixed
broadband penetration is at less than 7%
of households, with most being served by
legacy infrastructure and technology. Fiber
penetration at less than 2% is significantly
lower than global benchmarks. Given the
trend in mobile broadband consumption
wherein close to 70% of data is consumed
indoors, need for high speed fiber
connectivity at homes and enterprise is
well established.
Last mile connectivity and intracity fiber
networks will be a key differentiator. In this
context, Jio is well positioned to tap this
virtually greenfield opportunity to offer
FTTx services with its extensive layout of
fiber network and customer touch points
across 1,600 cities.
BRIDGING THE URBAN
RURAL DIVIDE
India has set new incentivising standards
for mobility led inclusion, driven by
a combination of private and public
initiatives. Jio realises that reducing
the digital inequality is crucial to
ensure equal access to information and
knowledge, as well as foster innovation
and entrepreneurship. Jio has been a key
catalyst for data usage across geographies
and strata of society with its deep network
coverage and affordable data plans.
This has been the primary reason for the
data boom that the country has seen over
the past two years. Prior to the launch
of Jio services, the total mobile data
traffic across all networks in India was
0.2 Exabytes per month. At present, Jio
network alone carries over 3 Exabytes per
month, with the industry data traffic being
more than 5 Exabytes per month.
INDUSTRY DATA USAGE (Crore GBs, Quarter Ending)
Others
4G
140
1,445
146
1,282
158
1,097
155
887
138
669
120
532
107
436
81
340
44
243
50
297
47
27
Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 India is the second largest smartphone
market in the world after China, with
approximately 400 million smartphone
users. Notwithstanding, smartphone
penetration has been low, constrained
by low affordability and adoption in rural
areas. This should improve as device prices
go down and per capita incomes increase.
JioPhone has played an important role in
providing the power of data and internet to
rural India and the lowest economic strata.
The 'Monsoon Hungama' plan for JioPhone
has been very successful in driving first
time adoption by mobile internet users,
especially in rural areas. Also, Government
initiatives on Digital India has been a big
driver along with deeper rollout of LTE
networks.
Despite this, rural India remains a highly
underpenetrated market and presents
a huge opportunity for digitisation.
According to data from TRAI, rural mobile
penetration stands at 57% while rural
internet penetration is 25%, indicating that
rural remains primarily a voice market.
Rural broadband penetration is even lower
at 21%.
JIO LEADING FROM FRONT
As per EIU forecasts, Indian households
have been witnessing an upward trend in
their disposable income for the last few
years. Deloitte expects that rising affluence
will drive adoption of internet-based
services. Supported by affordable network
and devices, India’s young population is set
to lead the data revolution in the coming
years as untapped markets start adopting
more digital services.
JIO – AN INTEGRATED DIGITAL
SERVICES FRANCHISE
Jio’s transformative entry and collaborative
approach across the consumption value
chain has catalysed industry transition
towards convergence of wireless, wireline,
media entertainment and other value-
added services.
LARGE HEADROOM FOR RURAL INTERNET PENETRATION (%)
70
60
50
40
30
20
10
0
Sep-15
Sep-16
Sep-17
Sep-18
Dec-18
Mar-19
Rural mobile penetration
Rural internet penetration
ADVANTAGE INDIA
Robust Demand
Attractive Opportunities
Supportive Industry Policy
Growing Middle Class
World’s 2nd largest
telecommunications market
with 1,161 million subscribers
(March, 2019)
70% of population lives in
non-metro, non-urban areas
and is not fully data enabled
Increasing consumption of data
and media on mobile networks
Rural teledensity at 57.13%
(March 19)
2nd largest internet market
globally
GoI launches Digital India
programme
Education, healthcare,
commerce and agriculture will
be connected through internet
Proactive efforts to
transform India into a global
telecommunications hub
New National Digital
Communications Policy 2018 to
set the tone for full digitisation
path
Young population and
increasing disposable income
Quick adoption to digital life
750 million internet users by
2020
1.25 billion broadband
subscribers by 2024*
*Source: Ericsson Mobility Report 2019
93
48.150.856.358.559.257.112.813.714.621.823.925.4Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Digital Services
NETWORK BUILT FOR COVERAGE AND
CAPACITY
Jio has built the country’s largest all-IP
data network on 4G-LTE technology. The
network has been built as a mobile video
network, provides VoLTE and is future
ready for transition to 5G and beyond. Jio’s
target is to reach 99% population coverage,
significantly ahead of any 2G network
coverage in India. It is also augmenting
capacity by adding new sites, fiber
backhaul and small cells.
BEST IN CLASS NETWORK QUALITY
Jio’s wireless network now carries
over 3 Exabytes of data and nearly
25,000 crore minutes of voice per month.
Across the 306.7 million subscriber base,
this translates to a per capita usage of 10.9
Gigabytes and 823 minutes per month.
Despite this growing traffic, call drop rate
on Jio networks remains the lowest in
the industry and data download speed
is also by far the fastest in the industry.
According to TRAI’s data, Jio is the fastest
4G operator with highest average download
speed for the last 27 months – registering
average download speed of 20.8 mbps
on its network, more than twice to that
of the nearest operator (at 9.5 mbps).
The entire scale up of Jio has come
alongside sustained network performance
underlining its quality and capacity.
LIBERALISED SPECTRUM ACROSS
THREE BANDS
Jio’s network is designed to seamlessly
work across 800 MHz, 1800 MHz and 2300
MHz frequency bands. In fact, each of the
sites on the network radiates all three
bands. The combined spectrum footprint
of 1,108 MHz (uplink + downlink) across
the three bands in 22 circles provides
significant network capacity and deep
in-building coverage. Average life of the
spectrum portfolio is over 14 years with all
spectrum liberalised, which can be used to
roll out any future technology.
UNDERSEA CABLE NETWORK FOR
GLOBAL CONNECTIVITY
Jio has been actively creating a multi
terabit capacity international fiber network.
94
Jio with its partners is a part of two undersea
cable network consortiums:
• BBG (Bay of Bengal Gateway), a state of
the art 8,100 kms undersea cable system
providing direct connectivity to SE Asia
and Middle East, then onward to Europe,
Africa and Far East. This strategically
important undersea cable facility has a
landing facility in Chennai
• AAE-1 (Asia Africa Europe) stretches over
25,000 kms from Marseille, France to
Hong Kong. This is the longest 100 Gbps
undersea cable system with 21 landing
stations across Europe and Asia. In India, it
has a landing station in Mumbai
JIO DIGITAL VISION
DEMOCRATISING DATA
Most affordable
data in the world – ensuring access to
the common man
Best value offering in data
Connectivity for every Indian
Rich 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
Widest network in India
Spread across cities and villages
To cover >99% of India’s population
BEST IN CLASS NETWORK
ARCHITECTURE
Investment in infrastructure and innovation
are crucial drivers of economic growth
and development, and Jio has been a
forerunner in deploying world class digital
infrastructure, while constantly thriving
for innovative solutions to deliver the
best services for its subscribers. Jio’s next
generation network is amongst the best
in the world. Built from the ground up to
support high data usage and low latency,
advanced features such as Software Defined
Networking (SDN) and Network Function
Virtualisation (NFV) have been incorporated
into its design. Combined with significant
in-house data centre capacity already
built and investments into CDN (Content
Distribution Network), the network
does not just support superior customer
experience but is also future ready, with
potential transition to 5G in cost and time
efficient manner.
NETWORK AND PLATFORM INNOVATION
Jio has been on the forefront of innovation,
be it for network technology, platforms
or consumer services. Till date, the
company has filed 100 patents for the
pioneering initiatives it has undertaken,
of which 18 have been granted. In FY
2018-19 alone, the company filed for 35
patents and was granted 12. These patents
span across devices, network, cloud,
digital media, branding and customer
experience. Jio’s patents cover areas of
cutting-edge technology including video
bots, blockchain, NFV (Network Function
Virtualisation) and eMBMS (Evolved
Multimedia Broadcast Multicast Services).
TRULY DIGITAL JIO PLATFORMS
Since its inception, Jio has taken a platform
approach to integrate digital experience
and services with Jio Digital Platforms.
This has made all systems and processes
extremely modular resulting in quick
time to market for any new solution or
system changes. This was evident in recent
suspension of Aadhar based eKYC process
during the year, when the new process
was developed and deployed across the
country in less than 2 weeks.
Taking the same approach further,
JioCloud is now hybrid cloud ready and
migrated to an open source. To keep pace
with technology transitions, the company
has created horizontal organisational
frameworks and communities to
institutionalise all current and ongoing
learnings at Jio.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 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 and Messaging
experience
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 (800/ 1800/ 2300 Bands)
with fiber backhaul
Superior Data experience
Sufficient throughput for the
highest end applications
CREATING A MICROSYSTEM WITH NEW
ENTREPRENEURS
India is fast emerging as an innovation
centre for new technologies. Young
entrepreneurs are using technology to
solve customer problems across the strata
of population. Jio, because of its best in
class 4G network has been a key catalyst for
this ecosystem. Taking this a step further,
Reliance is nurturing and developing this
ecosystem further through investment and
collaboration.
In FY 2018-19, through group affiliates
Reliance has invested in companies
like C-Square (software), EasyGov
(e-governance), Grab-a-grub (logistics),
Haptik (chatbot solution), Netradyne (AI,
logistics), NEWJ (digital and social media),
Radisys (5G, IoT), Reverie (language as a
service platform), Sankhyasutra (simulation
services) and SkyTran (transportation
technology). Each of these investments
have been carefully selected to fit into
Reliance digital ecosystem to enhance and
keep its offering across mobility, homes
and enterprises future ready.
DISTRIBUTION TO COVER THE LENGTH
AND BREADTH OF THE COUNTRY
Reliance Retail works as the Master
Distributor for Jio connectivity services.
The distribution network comprises of
over 7,600 Jio stores. These in turn work
with over 1 million retailers across the
country for new customer acquisition and
recharges. In addition to this, services are
also sold through the MyJio application, the
most popular self-care application in the
country.
MAJOR CONTENT PARTNERSHIPS
IN FY 2018-19
To improve customer engagement on
the network, Jio has entered into a series
of content partnerships in FY 2018-19
to provide best in class content to its
subscribers. These include:
• Partnership with Disney to offer content
from Disney, Pixar, Marvel, Lucas Film
on JioCinema app. The app hosts a
dedicated Disney branded section on the
homepage with content spanning across
movies, animation and short series
• Agreement with Star India for a period of
5 years, for the telecast of all BCCI Cricket
matches (T20, One Day Internationals,
International Test Matches, BCCI
Domestic Tournaments) on the JioTV
platform
SUITE OF DIGITAL SERVICES
Jio’s all IP network is fully enabled and
capable of delivering content focused
services. This enriches customer experience
due to the network’s ability to carry and
deliver multimedia content. Jio through
its group affiliates has created a rich suite
of applications and tools that encompass
entertainment, news, information,
commerce and self-service. Jio’s digital
suite of applications are already amongst
the most popular in their respective
categories and have won various accolades.
Most popular ones include JioTV (630+
channels of live and catch up TV, across
16 languages and, 11 genres), JioCinema
(Video on Demand, 10,000+ movies,
1,20,000+episodes, 70,000+ music videos),
JioMoney, JioNews (Personalised news
app with use of AI and ML algorithms
consolidating various content formats
including Live TV, Short videos, News
articles, Magazines and Newspapers) and
JioChat. Through the MyJio app, digital
self-service and e-Care capability is offered,
which proves to be a cornerstone of Jio’s
Digital proposition for its customers.
During the year, JioMusic and Saavn were
brought together into a single application,
creating industry leading user interface
and analytics with a library of over 45
million tracks in 16 languages. The platform
is differentiated through the exclusive
content produced via its Artist Originals
Program. This is the first Jio OTT (Over
The Top) content application which is also
available to non-Jio customers across the
world, on a freemium model. JioSaavn
has global collaborations with leading
artists. During the year JioSaavn’s Artist
Originals 'AO' facilitated collaboration
between Bollywood composer Pritam and
Marshmello, which got 70 million views
of ‘BIBA’ track on OTT platforms, and AO
collaboration between global hip hop
legend Nas and India’s two biggest rap
stars, Divine and Naezy.
95
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Digital Services
SUITE OF DIGITAL APPS FOR THE CONSUMER
MyJio
JioTV
JioCinema
JioMoney
Full service app with
MACD – Prepaid Postpaid
payments, Voucher, Loyalty,
Troubleshooting, Vitual Assistant
Live and catch up TV –
16 languages, 11 genres, 630+
channels, 130+ HD channels
Video on demand– 10,000+
movies, 1,20,000+ episodes,
70,000 + music videos, Exclusive
Web Originals
Jio Money is a digital payment
platform. Jio Payments bank is
a JV with SBI where live trials
are in progress.
JioNews
Embibe
JioChat
JioSaavn
Intelligently packaged
consolidated and personalised
news app with use of AI and ML
algorithms
Varied contents formats
including Live TV, Short videos,
News articles, Magazines and
Newspapers
175+ Live channels, 900+
magazines, 300+ newspaper
editions
Unique data driven AI based
education services platform
catering to Engineering,
Medical, Banking and Class 8-10
Fully encrypted messaging, HD
quality group voice and video
conferencing, events and
play-along initiatives
Launched integrated JioSaavn
app with refreshed UI/UX
45+ million tracks under license
across 16 languages with key
differentiation through Artist
Originals Program
Key initiatives include new
original content releases and
programmatic ad deals and live
lyrics/karaoke
RIL also acquired a majority equity stake
in Indiavidual Learning Pvt Ltd (Embibe),
a leading AI-based education platform
leveraging data analytics to deliver
personalised learning outcomes to each
student. The investment in Embibe
underlines Reliance's commitment
to developing the education sector in
India and the world, making education
accessible to the widest possible group of
students by deploying technology. Reliance
aims to connect over 1.9 million schools
and 58,000 universities across India with
technology, while strengthening Jio's
leadership position as a digital technology
company.
During the year, Jio also came out with a
unique and differentiated offering, Kumbh
JioPhone to enrich the spiritual experience
of devotees visiting the Kumbh. The Kumbh
JioPhone offered a suite of benefits like real
time travel information, ticket bookings,
stay options, routes and maps,
family locator, multimedia devotional
content, news alerts and entertainment,
among others.
WIRELINE NETWORK TO ENHANCE
CONNECTIVITY
India currently has only 19 million
households (6.3% penetration) with
fixed broadband connections, including
less than 2% fiber connected households.
Jio has set out a target to connect 50
million homes across the country with
its GigaFiber services. These services
would include home broadband, wireline,
content and smart home IoT solutions. Jio
GigaFiber is designed to provide fast and
secure ultra-broadband home experience
to the Indian audience.
To accelerate this rollout, RIL has made
strategic investments in Hathway Cable
and Datacom Limited and DEN Networks
Limited. These investments will create a
win-win outcome for Local Cable Operators
(LCOs), consumers, content providers
and overall ecosystem. Through these
investments, Jio will be strengthening
the 27,000 LCOs aligned with DEN and
Hathway to provide Jio Home solutions
to millions of homes. This will accelerate
Jio’s commitment to provide services to 50
million homes in the shortest possible time.
DEMERGER OF TOWER AND FIBER
ASSETS
Board of Reliance Jio Infocomm Limited
(RJIL) approved the demerger of its passive
infrastructure, tower and fiber assets into
two separate SPVs. The scheme of the
demerger was effective from March 31, 2019
post all requisite internal, shareholder, debt
holder and regulatory approvals. The assets
would be held by a separate SEBI registered
Infrastructure Investment Trusts (InvIT).
This demerger deleverages the balance
sheet and establishes Jio franchise as an
asset-light, digital services company.
96
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19
FINANCIAL, OPERATING AND
CUSTOMER ENGAGEMENT METRICS
Jio continued its momentum from the
previous year to FY 2018-19, reporting
robust revenue growth and margin
performance. This was driven by strong
adoption of Jio services, reflected in strong
subscriber addition and usage metrics on
data and voice. Subscriber addition of 120
million in FY 2018-19 was well ahead of
the 83 million added in FY 2017-18. Gross
revenue of `46,506 crore for FY 2018-19 on
a subscriber base of 306.7 million and EBIT
margin of 18.9% marked the continuation
of profitable growth.
FINANCIAL PERFORMANCE
Financial
Parameter
Gross
Revenue
EBIT
EBIT (%)
FY 2018-19
FY 2017-18
` in
crore
US$
in million
` in
crore
46,506
6724.9
23,916
8,784
18.9%
1270.2
3,174
13.3%
Jio continues to transform Indian Telecom
industry with its leading performance
benchmarks as follows:
• Industry leading ARPU of `126.2 per
month during the quarter ended March
2019
• Average voice consumption at 823
minutes per user per month (highest per
subscriber usage in the industry) during
the quarter ended March 2019
• Average data consumption of 10.9 GB
per user per month (amongst highest
per subscriber usage globally) during the
quarter ended March 2019
• Total wireless data consumption of 956
crore GBs during the quarter ended
March 2019 (one of the world’s largest
and fastest growing mobile data
network)
• Video consumption drove most of the
usage, increasing to over 500 crore hours
per month
OUTLOOK
Jio will continue to invest and build world
class digital infrastructure for the citizens
of the country, making a meaningful
socio-economic impact and generating
shareholder returns over the next several
decades. This will be built on the tenets of
providing data network with best coverage
and network quality at the most affordable
prices. In addition to connectivity solutions
and already established media and
entertainment services, Jio strives to create
a comprehensive digital ecosystem, with
focus on scaling up its new offerings across
commerce, education, healthcare, financial
services and agriculture.
Working on its commitment to Wireline
services, Jio has built the product and
services to transform every home to
SMART Home by serving the digital needs
of tomorrow’s India today – including
ultra-high speed internet, content, Home
voice services and Home IoT services,
among a list of digital services. Jio will
continue to work relentlessly to provide
widespread fiber connectivity to Modern
India.
TARGETING DIFFERENT CUSTOMER GROUPS WITH TAILOR MADE SERVICES
Mobile Customer
Home Broadband
Enterprise customer
Connectivity
Payments
Media
Health
Education
Commerce (combination of ubiquitous
connectivity and physical retail)
Smart Home
Voice activated commerce
UHD entertainment
VR Gaming
Video Conferencing
IoT (overlay with Quad play Offering)
Cloud Application
Data Analytics
Machine Learning
(overlay with traditional voice + data
services, Machine to Machine (M2M)
interfacing, M2M connectivity)
97
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Digital Services
RELIANCE JIO-AN INTEGRATED DIGITAL SERVICE COMPANY
Growth
Engines
Network
JioPhone
FTTH
Enterprise
Digital Technology
4G LTE > 2G coverage
Large addressable market
On track for 99%
population coverage
More extensive fiber
network
Pan India 4G- LTE
across 800/1800/2300
MHZ bands
450 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
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
Opportunities across
commerce, financial
services, education,
healthcare and agriculture
Q ILLUSTRATION: CORPORATE SOCIAL RESPONSIBILITY
Jio Apps and Smart education
Better farm productivity
Superior healthcare
Smart education for Girl Child
Increasing farm output
Bringing superior healthcare to people
Jio has been a key catalyst for the digital revolution in India, building numerous cases of
social, economic and sustainability benefits across the country.
Situation
Action Taken
Action Taken
Action Taken
Jio Gyan Shala was inaugurated at
Maharani Laxmi Bai Government Girls
Higher Secondary School in Satna,
Madhya Pradesh
Providing farmers with easy availability
of expert advice on fertilisers, pest
management and animal husbandry
through JioChat
As a test case, the first ever tele-robotic
operation was conducted in the state of
Gujarat (using Jio’s fiber connectivity over
32kms)
Scale of Impact
Scale of Impact
Scale of Impact
Smart classes to help over 2,000 girl
students
Farmers across multiple states
Performing intervention by operating
robotically controlled instrument
Outcome
Outcome
Outcome
Bringing high quality education to the
girls in villages
Boosting agriculture output during both
Rabi and Kharif seasons, improving
milk productivity in livestock thereby
increasing annual earnings of farmers
Building new cases for long distance
treatment and surgery for overcoming
healthcare infrastructure challenges in
the country
98
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)• Reliance Industries Limited | Integrated Annual Report 2018–19
Q ILLUSTRATION: JIOPHONE
Affordable devices and digital education
Improved business results
Improving digital education
Multiple business cases emerging among small business
owners (and MSMEs)
JioPhone was launched with the objective of empowering every Indian with the power of digital services, especially first-time
mobile data users who could not afford a smartphone. Its adoption and popularity have empowered many and changed countless
lives for the better.
Situation
Action
Action
JioPhone delivers online learning content used for primary /
middle school students in rural India where there is sub-optimal
education infrastructure
With the affordable device and solutions, multiple use cases
have emerged with businesses using video chat to track their
field sales force, training manpower, tourist operators facilitating
connectivity in remote areas and fishermen using it for tracking
weather patterns and relaying information
Scale of Impact
Scale of Impact
Rural population and first-time mobile internet users in villages
All small business owners across sectors ranging from small
machinery and parts manufacturing, sales and services
organisations, tourism and fishery
Outcome
Significant opportunity for improving rural education content
using digital platforms, ready access to updated educational
content, increasing awareness among children and adults
Outcome
Leverage affordable technology to improve business results,
create efficiency, improve customer experience and navigate
hazardous situations
99
• Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Media and Entertainment
Rahul
Joshi
Sudhanshu
Vats
Jyothi
Despande
Ramesh
Damani
Network18 continues to grow in
stature and significance, with an
aim to deepen engagement through
extending our powerful brands in
news and entertainment across
mediums, distribution platforms and
business models. With India’s vibrant
media sector as its playground, and
an unbridled aim to reach out and
intermesh with the lives of Indians
across demographics and languages,
Network18 maintains its position at
the cutting edge, touching the lives
of 1 in every 2 Indian. Network18’s
forays into subscription models
through its flagship digital properties
are aimed at embracing change and
accelerating growth as it continues to
invest towards becoming an industry
leader.
100
Inform, enlighten and entertain
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH
Network18 is RIL’s flagship investment
into the media and entertainment sector.
It is one of the most diversified media
conglomerates in the country, with
footprints across television broadcasting,
movie production and distribution, digital
content and commerce, print magazines,
mobile content and allied media services.
• Network18’s television channels
reach out to 800+ million people in
India, representing 95%+ of the TV
viewing universe. This makes more
than 1 in every 2 Indian, a consumer of
Network18's broadcast content.
• Subsidiary TV18 has cemented its #1
position amongst News networks in
India. Its 20 domestic channels span 15
languages, providing a solid leadership
in reach. With a 10.6% share of news
viewership in FY19, TV18 maintains its
leadership even versus to legacy brands
and free-to-air networks.
• Subsidiary Viacom18 is the youngest and
fastest growing premium entertainment
network in India. It is the #3 pan-India
entertainment broadcaster (ex-sports),
with an 11.1% viewership share in FY19.
Apart from TV broadcasting, its full
portfolio-offering includes a film studio
renowned for clutter-breaking cinema
and a leading OTT platform.
• Network18’s digital content properties
across news and entertainment are now
used by over 130 million people; and one
in every four internet users in India is on
Network18 websites or apps.
Network18’s operating model puts the
audience at the centre, and is driven
by its zeal to provide consumers with
best-in-class media and entertainment
products and content that establish new
benchmarks in creative excellence, fair
journalism and audience engagement.
OPERATING PILLARS
OPERATING PILLARS
CHANNEL-
AGNOSTIC
APPROACH
REACH FOR
IMPACT
THOUGHT
LEADERSHIP
NETWORK
SYNERGY
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 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.
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
driving 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.
STRATEGIC
COLLABORATIONS
BRAND
EXCELLENCE
OPERATING MODEL
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.
Brand
Business Model
Audience
Content
Medium
101
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Media and Entertainment
Value-chain: Network18 dovetails with the Jio ecosystem across content creation and distribution, thereby delivering the best of Indian
and global content and brands to discerning audiences across India’s vast demographic diversity.
VALUE CHAIN
Producer
Content Creation and Curation
(IP ownership with broadcaster)
Digital–Own Platform(B2C)
Audience
Subscription
Income
TV–Cable/DTH/FTTx (B2B2C)
Advertising
Revenue
Advertiser
Digital–Telco Platform (B2B)
Content Syndication
(Inbound and Outbound)
Partner
Network18 and its affiliates across the
media, telecom and broadband value-
chain are stitching together a compelling
value-proposition for its viewers in a
pipe-agnostic manner. Synergies in content
creation and efficiency in distribution serve
to amplify the reach of Network18’s brands,
delivering impactful ideas and immersive
imagery in class-leading packaging.
MARKET ENVIRONMENT
India’s media and entertainment sector
grew at a robust pace in CY 2018 (13.4%
y-o-y) to reach a size of `1.67 trillion,
driven by a strong recovery following
the temporary ad-revenue hiccups post
implementation of GST in the previous year.
The industry is slated to grow at 12% CAGR
over CY 2018-21, reaching a size of `2.35
trillion in CY 2021. This growth is likely to be
driven by tailwinds of better connectivity,
higher disposable incomes and availability
102
of wider variety of content, especially in
Indic languages.
Within the media and entertainment sector,
the subs-sectors that Network18 primarily
plays in are well-placed; TV continues to be
the dominant medium while Digital is the
fastest growing (after the nascent segment
of online gaming), and is likely to overtake
Films this year and Print by 2021.
(Source: EY-FICCI FRAMES 2019 report)
MEDIA AND ENTERTAINMENT SECTOR SEGMENTS
0
500
1,000
1,500
2,000
2,500
Rs bn
2017
2018
2019E
2021E
TV
Print
Films
Digital
Others
Total
(Source: EY-FICCI Frames 2019 report)
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)6603031561192381,4761,6741,8872,349740306175169285317194223338815955338236354467Reliance Industries Limited | Integrated Annual Report 2018–19 GROWTH DRIVERS
4. Telco partnerships for Digital media: While paid digital video viewers grew from
Consumption drivers:
1. Socio-economic tailwinds: With more
households having television sets,
better rural electrification allowing
for more consumption, and improved
awareness and propensity to watch, TV
viewership in India continues to rise. As
measured by BARC, TV penetration in
India currently stands at 66% and overall
viewership is still rising, despite the
advent of the Digital medium.
2. Advent of digital medium: India is still
substantially a single-screen market
(only 4 million out of 198 million homes
have multiple TVs), and hence co-
viewership at home is the norm. The
availability of cheap data and handsets
has spurred a mobile revolution in
India, which has opened up a wide pipe
that is used the maximum for content
viewership. As mobile (and especially
smartphone) penetration has risen,
the convenience and personalisation
of viewing content digitally has caught
on, which has created a parallel channel
for video consumption vis-a-vis TV. As a
result, Indians spent 30% of their phone
time on media and entertainment apps
(EY-FICCI FRAMES 2019 report)
MOBILE SUBSCRIBER GROWTH
(million)
Urban
Rural
2017
2018
Source: TRAI
3. OTT revolution underway: Led by
the promise of direct-to-consumer
monetisation, OTT apps have
proliferated, with Global and Indian
content players (broadcasters and
producers) as well as distribution
platforms launching their (mostly video)
offerings. 325 million people viewed
videos online in 2018, a growth of
25% from 2017 (EY-FICCI FRAMES 2109
report).
7million in 2017 to 12-15 million in 2018 (driving Digital subscription up 262% to `14
billion), the percentage of paying subscribers to total consumers is still less than 5%. In
contrast, over 200 million people accessed digital content through telco data bundles.
As a result, ~60% of video viewership volumes were generated by telcos.
(Source: EY-FICCI FRAMES 2019 report)
5. Rise of vernacular consumption: India is a linguistically diverse market, and people
wish to consume content in their own language to a very large degree. Hence, content
producers (both Indian and Global, across broadcast and digital) have increasingly
created vernacular offerings, which have found instant traction. A substantial chunk of
viewership growth on TV is presently being led by regional languages as a result.
VIEWERSHIP GROWTH WAS LED BY REGIONAL LANGUAGES (%)
Oriya
Assamese
Marathi
Bhojpuri
Urdu
English
Hindi
Gujarati
Tamil
Kannada
Bengali
Telugu
All India/2+/Channel Lang/Wk 38-50/2017 and 2018
(Source: BARC)
6. Segmentation of content offerings: As the number of channels has risen and the
digital medium has grown in significance and scale, more segmented content which can
cater to different sensibilities and age groups is being created. While escapism GEC and
Movies still command the lion’s share of viewership, other genres are attaining critical
mass.
3%
6%
6%
7%
24%
GEC
Movies
News
Kids
All India/2+/Wk 37-49/2018
Music
1%
53%
Sports
Others
103
49952666864634262522201515151414109Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Media and Entertainment
Monetisation drivers:
1. Digitisation of cable: The digitisation
of cable has enabled improved
subscription revenue, as it has
reduced rampant under-reporting of
subscribers as well as improved billing
and identification of customers. India’s
ARPU (average revenue per user) has
continued to rise as a result, and the
broadcaster share has risen to 25%.
ARPU (Rs/month)
Markets
DAS-I
DAS-II
DAS-III
DAS-IV
2017
250-350
200-325
150-225
125-200
2018
250-350
200-325
175-225
125-225
(Source: EY-FICCI FRAMES 2019 report)
2. New TRAI tariff regime: The new tariff
regime ushered in by the regulator
allows for unbundling of bouquets to
enable customer choice, and betters
transparency across the broadcast
value chain. This process shall allow
strong content propositions to thrive,
and optimize the financials of a channel
based on its demand and the propensity
to garner advertising and subscription
revenue. While it shall lead to some flux
in the short-run, the regulation shall
turn the broadcaster model from B2B to
B2C, which is a positive for monetisation
as the broadcaster share of on-ground
collections shall rise substantially. The
new regime shall also reduce carriage/
placement expenses substantially,
which has been a major pain-point for
(especially new) broadcasters.
3. Adoption of Digital Advertising: As the
advent of digital content consumption
(especially video) continues, more
advertisers are increasingly attracted
to digital advertising. As volumes of
digital content have risen very sharply,
advertising rates on digital have been
under pressure; but the influx of new
advertisers onto the medium and the
promise of impact-measurability is
making digital advertising an integral
part of media plans. The aim of reaching
out to varied audiences coupled with
the possibility of targeting has driven
104
even traditional advertisers to allocate
ad-budgets to digital too. This is driving
sharp growth in digital advertising
on local media platforms, despite
global behemoths like Google (esp.
YouTube) and Facebook cornering a
disproportionate chunk presently.
FINANCIAL AND OPERATIONAL
PERFORMANCE
FINANCIAL OVERVIEW
Network18 continued on its growth
trajectory, and invested in key areas to fill
whitespaces and ring-fence its position.
While the first three quarter of FY 2018-19
were buoyed by the revival in ad-spends
and rising traction with viewers across
the board, the last quarter dragged due to
the new tariff regime for TV channels, and
impact of absence of movie ‘Padmaavat’,
Union budget and some Cricket/Live
events this year. On a comparable basis,
FY 2018-19 ex-film revenue rose 7%
y-o-y on regional growth and a reviving
ad-environment. FY 2018-19 operating
EBITDA was up 13% y-o-y despite `131
crore additional investments into regional
channels and digital expansions (VOOT
International & Kids and CricketNext). This
was led by regional news gestation losses
compressing 42% y-o-y, and Business-as-
usual Entertainment EBITDA margins rising
to 9% (vs 5% in FY 2017-18). EBIT however
was impacted by fair valuation of financial
assets.
Reported
FY
2018-19
US$
in million
FY
2017-18
` in
crore
%
Change
y-o-y
` in
crore
Revenue
5,116
739.8
1,839
178%#
EBIT
EBIT
Margin (%)
(52)
(7.5)
(25)
(1.0%)
(1.3%)
# +2% on a comparable basis
CORPORATE RESTRUCTURING
There have been realignments in corporate
structure for group simplification, which
have provided operational synergies.
The scheme of arrangement for the merger
by absorption of wholly-owned direct
and indirect subsidiaries of Network18
and TV18 with the respective parent was
approved by the National Company Law
Tribunal (Mumbai bench). The scheme
became effective from 1st November 2018,
the appointed date being 1st April 2016.
NEW TARIFF REGIME
New tariff order (NTO) implementation is
medium-term positive, but has resulted
in viewership being impacted for all
broadcasters as process of consumers
choosing channels/packs and distribution
realignments is still underway. This also
resulted in volatile viewership data, and
advertisers pulling back spends in Q4
FY 2018-19, dragging full year growth.
Subscriber base has yet to normalize due to
implementation challenges. The channels
(through ‘Colors wala pack’ as well as
distributor packs) have witnessed strong
uptake in this transition phase; led by
breadth of content at a value price-point,
and improved distribution tie-ups.
We believe that in the new regime, pay
channels will have better consumer
connect as well as distribution economics
in the medium term. Our Free-to-Air (FTA)
channels Rishtey (General Entertainment)
and Rishtey Cineplex (Hindi Movies)
were withdrawn from DD Freedish, and
relaunched as pay channels with strong
content propositions.
TV18 News still retained its leadership even
versus FTA peers despite being a pay-
network, though the cluster’s viewership
share fell to 9.3% post NTO implementation
(11.5% pre-NTO).
Post NTO and shift from Freedish, the
viewership share of top 4 entertainment
broadcasters (ex-sports) all fell by 2 to
4% each. Our Entertainment cluster’s
viewership share was 8.6% (11.7%
pre-NTO), maintaining its #3 position.
THE YEAR OF VERNACULAR
The year was defined by regional content
consumption as well as monetisation
witnessing accelerated growth across all
parts of the media industry that Network18
plays in, whether broadcasting or digital;
and straddling news, entertainment and
film.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Q OPERATIONAL OVERVIEW
1 TELEVISION BUSINESS
NEWS
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: Amidst choppy markets, the business news channels continued their dominant leadership in their
respective genres.
General News includes CNN-News18 and News18 India.
Highlights of the year: News18 India became the #2 General Hindi News channel. The channel also touched #1 position
in primetime in a highly competitive genre.
Regional News includes 13 News18 channels (including erstwhile ETV channels) and News18 Lokmat.
Highlights of the year: The market share of News18 regional channels has grown from 2.5% in late 2016 to 6% (pre-NTO).
ENTERTAINMENT
Hindi General Entertainment includes flagship general entertainment channel (GEC) Colors, GEC Rishtey, and Hindi movie
channel Rishtey Cineplex.
Highlights of the year: For the entire FY 2018-19, Colors was the #2 player in the pay Hindi GE category and a clear category
leader in all day prime time. Despite a much smaller library, Rishtey Cineplex as an FTA channel continued to climb, taking
the #1 spot in a cluttered genre of Hindi movie channels, led by smart curation and distribution.
Youth and Music includes MTV India, the No. 1 youth brand, and 24x7 Bollywood music channel MTV Beats
Highlights of the year: MTV Beats remained the fastest growing music channel in the country.
English Entertainment has VH1, Comedy Central (India’s first 24-hour English comedy channel) and Colors Infinity.
Highlights of the year: While Comedy Central is the top-ranked English Entertainment Channel, the English cluster comprising of
Comedy Central, Colors Infinity and VH1 combined to control nearly 60% share of the English Entertainment space
Kids Entertainment constitutes of Nickelodeon, Sonic, Nick Jr. /Teen Nick and Nick HD+.
Highlights of the year: Nickelodeon has been the No.1 channel in the kid’s category since August 2014 and continues to
lead the segment.
Regional Entertainment The regional entertainment bouquet comprises of Colors Kannada and Colors Super (Kannada),
Colors Bangla, Colors Oriya, Colors Gujarati and the latest entrant Colors Tamil.
Highlights of the year: The regional portfolio was extended into movies to further provide segmented offerings to a
growing consumer-base, with the launch of Colors Kannada Cinema.
Infotainment has factual entertainment channel History TV18 and lifestyle channel FYI TV18.
Highlights of the year: FYI TV18 has grown from strength to strength to cement its position as the No.1 Lifestyle channel.
2 FILM BUSINESS
Film business includes Viacom18 Studios and Jio Studios.
Highlights of the year: Andhadhun, became the highest rated 2018 Indian Film on IMDb. Manto, one of our finest movies
was India's official entry in the 'Un Certain Regard' Category at Cannes. Viacom18 Studios successfully forayed into Telugu
cinema with 'Devadas' and into Malayalam cinema with “Kodathi Samaksham Balan Vakeel”.
3 DIGITAL BUSINESS
Digital Content includes Moneycontrol.com (leader in the finance category), VOOT (#2 broadcaster–OTT in the country) and
News18.com (digital destination for all general news), as well as fledgling properties IN.com (celeb news) and CricketNext.
Highlights of the year: Broadcast OTT VOOT has amassed over 130 mn gross downloads, and boasts of the highest
watchtime in broadcast-OTTs at 45mn+.
Digital Commerce includes Bookmyshow
Highlights of the year: BookMyShow entered into Live event production with world’s largest live entertainment company Cirque
Du Soleil with their production show “Bazzar”. The show which was held for the first time in India in Nov-Dec18 at Mumbai and
Delhi got an overwhelming response.
4 PRINT/PUBLICATION BUSINESS
Publication business Publication business has a portfolio of highly reputed magazines comprising Forbes India, Overdrive,
Better Photography and Better Interiors.
105
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)
Business Performance
Media and Entertainment
•
•
•
•
Growing ad-spends in regional channels
(news, led by regional elections;
and entertainment, driven by rising
consumption and value-perception) was
a consistent theme for the TV channel
portfolio as well as Digital properties like
News18.com and VOOT.
Viewership share of our regional news
cluster increased further to 6% of all
news viewed in India, vs 2.5% two years
ago. Improved ad-traction and active
cost control pruned gestation losses of
our 8 regional news channels launched
over FY 2015-17.
Regional entertainment channels
continued their viewership and
monetisation improvements across most
of our geographies, clocking in excess of
30% growth y-o-y on aggregate.
Viacom18 Studios sharpened its focus
into regional cinema, through films
like Thackeray (bilingual in Hindi and
Marathi), Ani…Dr Kashinath Ghanekar
(Marathi) and Devadas (foray into
Telugu).
GROWTH AND INNOVATION
Network18 has been striving to improve its
portfolio as well as enhance its outreach,
so as to realise economies of scale and
attain leadership. Substantial investments
continue to be made to create a compelling
proposition for viewers.
Free-to-Air (FTA) channels, Rishtey
and Cineplex, were taken to the pay
ecosystem and rebranded as Colors
Rishtey and Colors Cineplex respectively,
establishing the channels as premium
urban entertainment destinations. The
Colors Cineplex library is being beefed
up, to function as a full-fledged pay movie
channel. In the case of Colors Rishtey, it
is likely to allow for an overall increase in
monetization in the long-run, and slots-in
better with industry dynamics in the new
tariff regime.
Investments were made to revamp and
extend MoneyControl MoneyControl took
initial steps to venture into subscription
model (ad-free and premium features) and
transactions (mutual fund distribution).
Cricket portal CricketNext (#3 portal in
India) was relaunched with a dedicated
app. Over the next few months, CricketNext
intends to build on this momentum with its
coverage of the IPL and World Cup.
News 18 Languages portfolio has
steadily grown its spread across
regional languages, with content in Hindi,
Marathi, Bangla, Gujarati, Kannada, Tamil,
Malayalam, Telugu, Punjabi and Urdu
(Malayalam was launched in May 2018 and
Telugu went live in August 2018). Unique
Users on languages grew 118 per cent
(December 18), with more than 96 per
cent of our users coming through mobile
phones.
Entertainment portal IN.com was
relaunched in August 18. It will be India’s
premiere destination with opinionated
content around celebrities. Largely aimed
at millennials, the language and content
promises to be fresh and young.
Regional movie channel Colors Kannada
movies was launched in Q2 FY 2018-
19, to complement our leading GECs
in Karnataka. It solidifies our existing
leadership, and is #2 with 15% share in
Kannada movie genre.
VOOT’s product proposition has been
bolstered through making news channel
content available on it too. Additionally, the
platform is making rapid strides towards a
pay model too, with the first international
launch in UK through a partnership with
Virgin mobile. VOOT Kids, a differentiated,
niche pay offering went into Beta
Viacom18 studios announced its digital
content arm–Tipping Point in May 2018.
The intention was to create short-form
content for Digital (especially for VOOT) by
utilizing the strengths of the movie studio;
thereby creating high-value content in-
house, amidst the current high-competition
war for content.
RISKS
TRAI’s new tariff order shall benefit
broadcasters in the long-run as carriage/
placement costs gets rationalized, the
business becomes more B2C than B2B, and
transparency improves broadcasters share
of consumer ARPU. However, the changed
business model on subscription and flux in
advertising mechanics is likely to impact
business in the short run.
Fragmentation of viewership: With the
advent of Digital and a launch of multiple
new platforms led by cheaper bandwidth,
viewership has expanded significantly,
thereby fragmenting the consumer base
across platforms. This higher churn rates and
lower stickiness provides an opportunity
to wean away viewers from traditional
dominant players in television, but also is a
challenge as monetisation models are still
evolving.
Digital monetisation is lagging investments,
especially amidst strong competition.
Content costs: Spike in demand for content
creation/curation is driving up content costs
across Digital, Movies and GEC.
Consolidation (both horizontal and vertical)
continues to exert influence on the market.
There have been multiple cases of M&A
across the broadcast and digital value chain,
examples of which include Star’s acquisition
by Disney, DishTV acquiring Videocon D2H,
and Reliance Industries taking controlling
stakes in Den and Hathway.
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 media
and entertainment sector is poised for
substantial growth, as the segment steadily
gains international stature in terms of both
advertising and consumer spends.
106
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 BUSINESS STEWARDSHIP
At Network18, Corporate Social
Responsibility (CSR) is embedded in the
Company’s long-term business strategy.
The Company’s community initiatives
help elevate the quality of life of millions,
especially the disadvantaged sections
of the society. Network18 seeks to
transform people’s lives by promoting
health, education and sports.
Some socially relevant programs
undertaken during the year are -
•
•
•
•
•
As a responsible broadcaster,
Nickelodeon has an annual pro socio
campaign, Together for Good, which
aims at making kids responsible and
positive agents of change in society.
In an industry first, Viacom18 has
partnered with the world's largest
philanthropic organisation, Bill
and Melinda Gates Foundation,
and development communications
specialists, BBC Media Action to
create a general entertainment fiction
series with an underlying behaviour
change message on sanitation.
CNN-News18 did the chilling expose
#ChildSexHighway which uncovered
the disturbing secret of child sex trade
along national highways.
Swasth Immunised India–Network18
and Serum Institute of India joined
hands to help immunise the kids
of India. The aim of this campaign
is to spread awareness about
immunisation in India.
Road Safety Initiative – The road to
safety campaign created by Network
18 in partnership with DIAGEO created
awareness and inspired change for
millions of people in India. Backed by
ministers, bureaucrats and celebrities
across 20+ states in the country, the
campaign reached more than 130+
million people. State wise road safety
issues were deliberated to ensure
impactful steps are being taken to
reduce the number of accidents.
Q ILLUSTRATION
Innovation in interactive content
‘Voting on Voot’
was launched
across genres
and languages–
Bigg Boss S12,
Sur Nava Dhyas
Nava, Bigg Boss
Kannada S06
Launching
‘Video Vichaar’
on Bigg Boss
S12 fans an
opportunity
to share their
opinions
via video
submission
350 Mn+ Votes
cast on
the platform
60K+ video
submissions
on Bigg Boss
Launched as
a pre-budget
interactivity
Launched Play
Along with Ke
Hobe Banglar
Kotipoti to
allow users be
part of game
show through
innovative
weekly games
Participation
from 1.50
million users
Union Budget
Poll saw 300K
interactions
Action Taken
Launching
an ‘Ask me
Anything’
interactivity
format to allow
users vote on
question they
want to ask in
reality shows
Scale of Impact
Over 2 million
votes on
national
television
Outcome
•
•
•
•
Voot empowering today’s digital audience through interactivity
2nd screen engagement across 11 formats and 30 shows
Fans involved In the conversation of the show
Facilitated users to analyse budget impact on products
JIO STUDIOS
Jio Studios, RIL’s media arm, has been set
up with the vision to build a 360 degree
content ecosystem of films, web series,
music and other content in Hindi and
regional languages. “Stree” and “Luka
Chuppi”, the first two Hindi film releases
under the Jio Studios banner enjoyed
tremendous box office success and there
are several projects under development.
With a rapidly growing 306.7 million Jio
user base on mobility and the imminent
launch of the fiber-to-the-home services,
Jio Studios is tasked with aggregating
the best in class content for JioTV and
JioCinema as well as producing quality
content to create a differentiated
compelling consumer offering across all Jio
platforms. Jio Studios will also look to build
synergies with other media investments of
Reliance such as Viacom18, Balaji Telefilms,
Eros and JioSaavn to maximize the creative
bandwidth within the group.
Jio Studios intends to work with all the
top talent across Hindi and regional
entertainment industry including producers,
directors, writers and actors as well as
music artistes and composers to bring
interesting stories to the market in multiple
languages whether in the form of film, web
series or original music videos. Being a
technology company, the focus is on weaving
innovative elements into content to promote
interactivity and increase engagement
between users and content.
The mantra at Jio Studios is to become
a one-stop-shop for every Indian’s
entertainment needs by bringing them
interesting stories that can be enjoyed across
any device inside or outside the home.
107
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Liquidity and Capital Resources
Srikanth
Venkatachari
Soumyo
Dutta
Managing Liquidity and Capital
resources for Reliance and all its
group companies is a key focus
area within Treasury. The financial
markets witnessed heightened
uncertainty and volatility on
the back of geopolitical and
trade tensions as well as some
significant changes in the banking
regulatory environment in India.
Reliance Treasury focused on
providing liquidity at the optimal
risk adjusted cost by using a
variety of markets, instruments
and currencies. By maintaining its
investment portfolio in low risk
liquid investments, it was able
to navigate the dislocation in the
financial markets in the second
half of the year. In partnership with
banks it continued to innovate by
deploying new technologies like
API and investing in Blockchain.
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.
108
FINANCING STRATEGY
Reliance has over the last few years
successfully executed the largest
investment cycle in its corporate history.
Over the last couple of years, Reliance
has rolled out its digital services business
‘Reliance Jio’ across India
Through prudent financial discipline,
Reliance has maintained a judicious mix of
funding sources across instrument classes,
financing products, financial markets and
investor classes.
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.
Reliance has capitalised on opportunities
to optimise cost of borrowing and align
maturity profile of existing debt portfolio
with business strategy
During FY 2018-19, Reliance tied-up new
financing as well as refinanced its existing
loans as part of its on-going liability
management exercise.
NEW FINANCING
During FY 2018-19, Reliance tied-up:
i) US$340 million and EUR 136 million
SACE backed facility – This is the first
transaction globally under the SACE
Push Facility where SACE support is
“untied” and based on potential future
engagement with Italian vendors.
The deal was structured with four
different tranches at differential levels of
SACE cover and bank pricing.
ii) US$1.5 billion equivalent syndicated
term loan facilities – These facilities were
tied-up in USD and JPY. The facilities
were tied up in March with availability
periods between 6 to 9 months and
average life of 5.25 and 5.5 years from
weighted average drawdown date.
REFINANCING
As part of its liability management exercise,
during FY 2018-19, Reliance successfully
refinanced long-term financing of US$2.7
billion syndicated term loan facilities.
Reliance lengthened the maturity of its
long-term debt portfolio through this
refinancing exercise. This was the most
widely syndicated loan by Reliance till date
with participation from 44 banks and a total
amount of US$1 billion syndicated.
This syndicated loan was awarded the
‘Best Syndicated Loan’ by The Asset, Asia’s
leading financial publication for issuers and
investors.
RIL also issued non-convertible debentures
aggregating to `19,000 crore in the Indian
capital markets.
FINANCING IN SUBSIDIARIES
During FY 2018-19, Reliance Jio Infocomm
Limited (RJIL) successfully tied up JPY
53.5 bilillion, the largest Samurai loan for
an Asian corporate and also for a telecom
company. The loan was successfully
syndicated to 9 local Japanese banks
aggregating to JPY 19.5 billion, thereby
taking the total number of participating
banks to 12. Additionally, RJIL also
tied-up term loan facilities aggregating to
US$1.5 billion.
In June 2018, RJIL tied up US$825 million
and EUR 150 million Korea Trade Insurance
Corporation (K-Sure) supported ECA
financing with door to door tenor of over
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 ten years. This transaction was the largest
financing transaction globally in the
telecom sector supported by K-Sure.
The K-Sure deal has been awarded ‘Best
ECA-backed Telecoms Finance Deals of the
Year’ by Trade and Export Finance (TXF)
as part of their perfect 10 awards, which
recognise only 10 deals globally within
Export and Project finance for 2018.
CAPITAL RESOURCES
During FY 2018-19, Reliance and its
subsidiaries tied up facilities across various
financing products and maturities. The
table below shows debt levels for the year
ended March 2019 and March 2018 for
Reliance on a consolidated basis.
Particulars
(` in crore)
March 31,
March 31,
2019
2018
Cash and Marketable
Securities
1,33,027
78,063
Gross Debt
2,87,505
2,18,763
Net Debt
1,54,478
1,40,700
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 dislocation.
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.
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
Rating
Agency
S&P
Rating
Outlook Remarks
BBB+
Stable
International Debt
Long-Term Debt
Long-Term Debt
Moody’s
CRISIL
India Rating Ind AAA
Stable
Baa2
CRISIL AAA 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 Rating
RATINGS DEFINITIONS
S&P BBB+: An obligation rated BBB exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely to lead to a
weakened capacity of the obligor to meet its financial commitment on the obligation.
Moody’s Baa2: Obligations rated Baa are judged to be medium-grade and subject to
moderate credit risk and as such may possess certain speculative characteristics.
CRISIL AAA: Instruments with this rating are considered to have the highest degree of
safety regarding timely servicing of financial obligations. Such instruments carry the 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 the lowest credit risk.
109
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth at Reliance
Reliance has been at the forefront of integrating sustainability
into its core business, pioneering change at the technological,
behavioural as well as the policy levels. In its business strategy,
the Company has gone much beyond risk management to
inculcate a future growth oriented management philosophy
which draws from four key enablers that reinforce the
Company’s fundamental philosophy – ‘Growth is Life’.
The four enablers are:
A. Strategic Framework
B. Integrated Approach
C. Risk and Governance
D. Digital Platform
A. STRATEGIC FRAMEWORK AT
RELIANCE
A prudent financial framework, a
robust risk management framework
and the Company’s short and long
term objectives linked to value creation
define Reliance’s Strategic Framework.
It also outlines the expectations and
boundaries within which each of the
Company’s businesses must operate.
The intent is to also provide guidance
to the established as well as evolving
businesses in the Group by setting
effective business objectives for each.
The entire framework is underpinned
by the core belief that value creation
and preservation are paramount.
This cuts across the entire set of
internal and external stakeholders and
leverages a strong knowledge and asset
base as well as investment in strategic
opportunities.
Reliance’s Strategic Framework can be
divided into three pillars:
• Approach
• Value creation
• Enablers
B. THE INTEGRATED APPROACH
Reliance is cognisant of the value it
creates across its value chain for all of
its stakeholders. This value creation
is not only monetary but also takes
several other forms, both tangible
and intangible. The Company has
110
adopted the six capitals postulated by
the International Integrated Reporting
Council’s (IIRC) Integrated Reporting
framework to aptly delineate its
value creation story:
• Natural Capital and Climate
Change
• Human Capital and People
Connect
• Manufactured Capital and
Product Stewardship
• Intellectual Capital and Innovation
• Financial Capital and Credit Rating
• Social and Relationship Capital
A strong balance sheet is the outcome
of a robust financial framework.
By capitalising on additional
opportunities such as efficient use of
natural resources which leads to cost
reduction and maintaining strong
relations with stakeholders, Reliance is
able to further augment its bottom line.
Reliance’s growth ambitions are fueled
by its people who are being constantly
up-skilled and brought up to speed
with the use of latest technologies.
This enables the Company to leverage
investments in emerging technologies
which bring in more efficiency, which
also leads to safer and environmentally
friendly operations. The Company’s
growth also fuels fast paced economic
growth of the areas where it operates.
RIL also leverages digital technology
and smart manufacturing applications
to create innovative solutions for
business functions.
C. RISK AND GOVERNANCE
Risk management at Reliance is
reviewed based on the ever-changing
external and internal environment
to ensure decision-making is aligned
with the organisation’s business
strategy, improving the resilience
of the organisation, which creates
sustainable value. The Company
recognises that effective risk
management is fundamental to its
continued profitability and long-term
sustainability. 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 the Reliance Management
System (RMS) journey forward and
to create an agile and responsive
organisation, 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.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19
Approach
Driving growth, value, innovation
and transformation in society
Reliance is moving at great
pace towards the new age of
industrialisation. At the core of this
transformation is the Company’s
unique ability to optimise value
creation from its existing asset base
while simultaneously augmenting
investments which drive growth
exponentially.
Technology is playing a pivotal role
in all of this and the Company is
deriving the maximum possible value
from the ongoing digital revolution.
Reliance leverages its strategic
investments and leadership position
in India to take advantage of the
large domestic market while building
competencies that can be rolled out
on a global scale.
All of Reliance’s business activities
and new investments have to stand
the litmus test of creating value
for its shareholders, employees,
customers and society.
Key Reflections of 2018-19
•
Integrating backward–Started
with textile, then integrated
hydrocarbon business now a
significant player in consumer
facing businesses
• Global Scale
• World’s largest Refinery complex
at Jamnagar
• “Reliance Retail” the largest
retailer by revenue in India
• Jio is shaping the future of India
through transformative, quality
and affordable access of end-
to-end digital services for every
Indian and making digital India
vision a reality
Enablers
Reliance’s Group Strategy is founded on five
enablers. These include safe operations,
digital technology, capital productivity,
operational excellence and ethics.
Reliance believes that the Health and Safety
of its people supersedes all production
targets. There is a continued focus on ensuring
compliance, which helps Reliance to preserve
enterprise value, and provide a perpetual
license securing its right to operate across India
and globally.
Digital technologies have become the prime
movers of Reliance’s new-age businesses as
well as the significant enablers for driving the
efficiency and safety of existing businesses.
Reliance is a pioneer in harnessing new digital
technologies and mobility initiatives that
transform its value creation model.
Reliance’s approach to maximise value creation
also hinges on its ability to optimise resource
and capital efficiency. Whether it is customer
facing and internal, Reliance drives a mind-set
for continuous improvement and processes
which forms the bedrock of all its operations.
Reliance is committed to conduct all its
initiatives with the highest levels of integrity.
Safety and compliance
• Use of drones for safety
• E&P has a track record of over 10 years of
safe operations
Digital technologies
• Omni-channel initiatives in Reliance Retail
• *GST for community
• Future Ready 5G, 6G and beyond
Capital productivity
• *ROCE (adj.) for FY 2018-19 – 24.9%
• *Substantial interest savings from
successful refinancing of long-term loans
Operational efficiencies and effectiveness
• Anytime, anywhere uninterrupted
high-speed data access
Ethics
• Ethics and Compliance Task Force oversees
and monitors implementation of ethical
business practices
Value Creation
Shareholder value
Reliance’s approach to drive shareholder value rests on active
portfolio management to continuously enhance the quality of its
business portfolio, and consistently deliver enhanced shareholder
returns by maintaining a focus on long-term growth potential.
Employee value
Reliance’s growth is intrinsically linked to the growth of its people.
The Company’s approach towards value creation for its employees
focuses on 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
Reliance is cognisant of its responsibility towards the communities
that it operates in. Apart from creating direct and indirect economic
benefits for the society such as job creation and infrastructure
upgradation, Reliance, through a dedicated team of developmental
professionals, directly engages with the society to identify their needs
and designs interventions, which lead to an overall enhancement in
the quality of life of citizens.
Shareholder value
• *Dividend Recommended–`4,641 crore
• *Market Capitalisation – `8,63,996 crore
• 31.9% Market Capitalisation CAGR, since IPO
• *Maintained high RONW (adj.) of 13.7% (standalone)
Employee value
• Employing people from 16 nationalities, including 55 foreign
nationals in the leadership team
• Reliance's millennial (under 30) strength grown to 49.8%
• Digital learning platforms for employees to learn anytime,
anywhere
• R-University: Driving employee learning and training
• *Imparted 66.93 lakh man hours of training
Customer value
• 306.7 million Jio subscribers
• *Transforming India’s telecom landscape with a compelling
customer value proposition
• Over 500 million footfalls across all stores of Reliance Retail
• *Network18’s digital properties are used by 130 million+ people; 1
in every 4 Indian Internet user is on Network18 websites or apps
• Mottos of 'Chemistry for Smiles' and 'Transforming Life into Quality Life'
Societal value
• 1.94 lakh direct employment generation
• *`67,589 crore contribution to the national exchequer
• Reliance Foundation touched the lives of over 26 million people
•
since inception
Indians impacted across 18,000+ villages and 200+ urban locations
through Reliance Foundation
• CSR activities in conformity with SDGs
• *CSR expenditure of `904 crore
*Current year outcome
111
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Natural Capital and Climate Change
Pawan Kumar Kapil
Par Singh
RIL incorporates Natural capital
considerations (air, water and
soil) into its decision-making at all
stages in its operational locations:
design stage, operation stage and
above all, in its interactions with
the external world. Through sound
governance, environmental impacts
of each manufacturing location are
maintained at levels which are lower
than the prescribed legal obligations
with respect to air quality, fresh
water usage, soil use, impact on flora
and fauna, and marine ecosystems.
Reliance believes in the concept of
resource optimisation, extracting
more value from bottom of the barrel
production in its hydrocarbon business
and handling maximum GB of data per
unit of emission in its digital business.
The Company’s strategy towards
combating climate change aims to
reduce emissions in its operations,
allow better assessment of impacts
and support an orderly transition to
a low-carbon economy. Reliance’s
refining complex, which is the largest in
the world, is designed to operate solely
on desalinated sea water, thus making
fresh water resources from lakes and
rivers available for communities to use.
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 6,151
acres of green belt, enriching ecological
balance and biodiversity.
112
MATERIAL TOPICS
OTHER FRAMEWORKS REFERENCED
API/IPIECA, UNGC, WBCSD, GHG Protocol,
TCFD, Natural Capital protocol, UNGP,
NVG-SEE, NGRBC
1. Energy Efficiency of Operations
2. Carbon Abatement and Offsetting
3. Managing Environmental Impact
4. Water management
5. Waste management
6. Renewable and alternative energy
7. Ecosystems and Biodiversity
UNITED NATION’S SDGs
PMO’S INITIATIVES SUPPORTED BY THE NITI AAYOG
1. National Solar
Mission
2. National Policy
on Bio Fuels
3. National
4. National Plan
Environment
Policy
for Conservation
of Aquatic
Ecosystem
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Q KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
Rainwater harvesting capacity
created since inception
7.32+ crore m3
Cumulative saplings planted since inception
2.1+ crore
Energy saved on account of conservation
initiatives
26,50,680 GJ
Natural resources which RIL uses – water, air,
land and minerals
Crude throughout
68.3 MMT
Q KEY 10 YEAR HIGHLIGHTS
Total water recycled (000' m3)
73,142.11
FY 2018-19
69,363.84
FY 2017-18
Waste water discharge (000' m3)
27,871.88
FY 2018-19
30,054.39
FY 2017-18
Scope 1 Emissions (million TCO2)
29.36
31.50
FY 2017-18
FY 2018-19
Air emissions–TPM (in 000’ MT)
2.29
3.04
FY 2017-18
FY 2018-19
Air emissions–VOC (in 000’ MT)
41.88
42.90
FY 2017-18
FY 2018-19
Air emissions–NOx (in 000’ MT)
34.43
36.72
FY 2018-19
FY 2017-18
• Established
a mangrove
nursery with
over 40,000
saplings at
Kakinada
• Planted 12
lakh saplings
across all
manufacturing
divisions
• Started
procuring
recyclable
green
polymer
packaging
bags
• Carried out
mangrove
plantation on
over 50 ha. of
land
• Planted
20 lakh+
saplings with
an average
survival rate
of 80%
• Hazira plant
achieved
zero wastage
of Butadiene
in Small
Group
Activity
(SGA)
• Conserved
1,63,500
tonnes+ of
soil
Cleaner air, cleaner water, cleaner soil and
preserving flora and fauna and marine
ecosystem
Recognised Task Force on Climate-
related Financial Disclosures (TCFD)
Recommendations
Diligent use of scarce resources with minimal
environmental footprint and extracting more
value from bottom of the barrel production.
No major spill or catastrophe
Non Hazardous Waste (in 000’ MT)
798.61
909.99
FY 2018-19
FY 2017-18
• Commissioned
world’s first
ROGC complex
of 1.5 MMTPA
capacity. It
resulted in
reduction
in energy
intensity of
ROGC to 6100
BTU/lb HVC*
• Saved 1.44
million GJ
of energy
through
various energy
efficiency
improvement
initiatives
• RIL’s pet-coke
gasification
project at
Jamnagar
is under
stabilisation
(cid:26)(cid:31)(cid:31)
(cid:27)(cid:31)
(cid:28)(cid:31)
(cid:29)(cid:31)
(cid:30)(cid:31)
(cid:31)
(cid:26)(cid:31)(cid:31)
(cid:27)(cid:31)
(cid:28)(cid:31)
(cid:29)(cid:31)
(cid:30)(cid:31)
(cid:31)
113
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
7000
5600
4200
2800
1400
0
7000
5600
4200
2800
1400
0
60.7165.6862.9260.4863.3268.7169.365,858.142,431.332,227.764,307.093,019.384,333.403,932.811,437.703,004.022,650.6873.1447.82 Energy Saved on Account of conservation Initiatives (000' GJ) Total Water Recycled (in Million m3/annum)65.73Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Natural Capital and Climate Change
MANAGING NATURAL CAPITAL AT RELIANCE
Reliance strives to improve its environmental performance continuously with enhancement in its current practices and implementation of
management systems across all locations. The Company’s aim is to promote ‘Nature Neutral’ practices across its operations and value chain.
MANAGING NATURAL CAPITAL – TOWARDS A BETTER PLANET
Focus Area
Aspect
Philosophy adopted
RIL differentiators
Impact created
CLEAN AIR
• Going beyond compliance for
stack emissions by maximising
operational efficiency
• Emission reduction through
design improvements and
eco-friendly fuels
CLEAN WATER
• Plan for minimum reliance on
• Desalination at Jamnagar
freshwater
• Zero discharge
• Emissions reduction and recovery
• Reduction in water consumption
Increase in water recyclability
•
PREVENTING SOIL
CONTAMINATION
• Minimum waste disposal
• Zero-spill operations
• 2 Billion PET bottles recycled /
•
Increase in waste recyclability
annum
BIODIVERSITY
•
In-situ preservation of ecosystems
• Over 2.1 crore saplings planted
DILIGENT USE OF
SCARCE RESOURCES
• Optimisation of resource
• Syngas as a fuel
consumption
• Greenbelt development
• Habitat restoration
•
Increase in operational efficiency of
refineries
DIGITAL ECONOMY
• Advanced technology enabling
• Digital ecosystem replacing travel
• Reduced emissions at consumer end
reduced footprint
ENVIRONMENT MANAGEMENT –
TOWARDS A BETTER PLANET
RIL's Environment Policy5 reaffirms its
commitments towards environment and
society and addresses relevant issues
applicable to all its employees, contractors,
suppliers and customers.
RIL further strengthened its statutory
compliance system during the year.
The Environmental Management Systems
at all the manufacturing locations have
migrated to ISO-14001:2015 standard.
The ‘integrated reliance compliance
management system’ (iRCMS) ensured
that all new applicable regulations are also
fully complied with. RIL’s manufacturing
locations continue to improve
environmental practices under ‘Green Card
Performance Rating System’, and detailed
second and third-party environmental
audits. The environmental compliance
review committee reviewed compliance
status, every quarter, and provided
guidance for improvement in compliance
and beyond.
5 http://www.ril.com/Sustainability/HealthSafety.aspx
114
During the year, Environmental
Clearance was granted by Ministry of
Environment, Forests & Climate Change
(MoEF&CC) for the proposed expansion
and debottlenecking project of the
petrochemical complex at Nagothane.
TRAINING
To strengthen employees’ skills, hands-on
computer-based training on air dispersion
modelling was imparted. Training and
awareness session on statutory and
technical aspects of rainwater harvesting
was arranged. The session, delivered by
renowned experts was also telecasted
live through video conference across all
manufacturing locations to benefit more
employees.
PERFORMANCE
All manufacturing locations prepared
environmental sustainability plan for
the year and worked towards achieving
improvement in their environmental
performance. Some of the major initiatives
during the year include improvement
projects at ETP resulting in increase
of treated effluent recycled, enhanced
rainwater harvesting capacities and
recycling of waste through co-processing in
cement industries.
The Company is extending its internal
studies on ‘Life Cycle Assessment’ for its
major polyester products. RIL periodically
organises Suppliers’ meets to discuss
and further improve their environmental
performance.
RIL is one of the 10 companies from India
that is a member of World Business Council
For Sustainable Development (WBCSD),
which reflects its commitment towards
playing an active role in transforming
business and shaping society. The
Company’s vision of transformation and
growth mirrors WBCSD’s position: ‘Business
is good for sustainable development
and sustainable development is good for
businesses’.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 CLEAN AIR
ENERGY EFFICIENCY
Strategic investments
Reliance’s commitment towards
maintaining energy efficiency in its
operations drives it to promote a broad
range of energy conservation initiatives at
all its manufacturing locations. A dedicated
team works to identify and implement
energy conservation initiatives, resource
optimisation and renewable energy
projects at all of RIL’s manufacturing sites.
For more details, refer Annexure V
of Board’s Report.
1. Petcoke gasification integrated
with combined cycle gas turbine,
commissioned at Jamnagar for steam
and power generation, is identified as
a cleaner technology by International
Energy Agency (IEA). Aim is to transform
the Jamnagar refinery into a unique
'bottom-less' refinery by converting
refinery residue (petcoke) into syngas.
2. The gas turbines at Jamnagar are being
retrofitted to facilitate syngas firing
capability with reduced NOX and SOX
emissions.
3. Efforts on energy cost reduction and
energy security is demonstrated by
installation of two coal fired thermic fluid
heaters in Patalganga Manufacturing
Division.
4. To minimise flare losses, operating
procedures during start up and
turndown are modified together with
hardware changes resulting in reduced
operating costs and GHG emissions.
Design stage
The Company’s initiatives on clean
technology, energy efficiency and
renewable energy include:
1. Renewable energy usage in CCPP: Use
of the dried bio-sludge from Effluent
Treatment Plant as a fuel in CCPP and
trials planned for biomass co-firing in
CCPP boilers in the Dahej manufacturing
division.
2. Partnering with global technology
leaders, RIL is developing a bespoke
technology for extracting Vanadium
Pentoxide (V2O5)/ FerroVanadium (FeV)
from gasification slag, a byproduct from
petcoke gasification process. Alongside
these efforts, in-house R&D is also being
pursued with a focus of low cost high
efficiency hydro process for the same.
This will boost gasification margins and
help India develop into a global source
for V2O5 and ferrovanadium in the near
future.
Retrofitting process equipment
1. Technology change
a. Converting the distillation process
for dehydration of acetic acid water
mixture from conventional distillation
to azeotropic distillation resulting in
reduced steam consumption at Hazira
Manufacturing Division.
b. Replicating the success of advanced
distillation technology, Divided Wall
Column (DWC), to other applications
is under study.
2. Optimisation
a. Installation of sonic horn in place of
conventional soot blowers to improve
performance of boilers in Captive
Power Plant at Hazira and Dahej.
b. Real time closed loop control
and Advanced Process Control/
Real Time Optimiser systems to
ensure economic, safe and reliable
operations.
c. Automated reporting and data
collection and monitoring through
Management Information Intelligence
System (MIIS) dashboard enables
effective analysis and faster response.
d. Installation of Solar PV of 60.48 kWp
at Jamnagar.
e. Replacement of conventional lamps
to LED lamps for lowering energy
consumption.
f. Waste heat recovery:
exchangers for improved heat
recovery and consequent reduction
in fuel consumption.
• Installed air preheaters in all Coker
heaters at JMD, resulting in reduced
fuel consumption.
g. Improving cogeneration by
switching to lower pressure steam
consumption, thereby generating
more electrical power and reducing
steam consumption at Hazira and
Vadodara manufacturing divisions.
h. HP Nitrogen compressor operated at
50% load, avoiding spillback to save
electrical power at the new MEG plant
of Jamnagar manufacturing division.
To set organisational boundaries for
consolidated GHG emissions, Reliance has
utilised the operational control approach
for the various entities covered under the
Report. RIL’s accounting GHG emissions
is based on the 'GHG Protocol Corporate
Accounting and Reporting Standard' issued
by the World Resources Institute (WRI) and
the World Business Council for Sustainable
Development (WBCSD). In FY 2018-19,
Scope 1 emissions from fuel consumption
were 29.36 million tCO2e and Scope 2
emissions from electricity consumption
were 1.15 million tCO2e. The total GHG
emissions from Reliance’s operations
decreased by 5.18% in FY 2018-19.
RIL has registered eight CDM projects with
the United Nations Framework Convention
on Climate Change (UNFCCC). These
projects are related to energy efficiency,
use of renewable energy and cleaner fuels.
The Company has built in-house capacity
to develop CDM projects and obtain the
registration and issuance of the same in
the form of Certified Emission Reductions
(CERs) from the UNFCCC. Reliance has
recognised the TCFD recommendations
with a commitment to enhance its
climate-related disclosures. For more
details, refer TCFD disclosures Page No 159.
•
•
Implementation of recovery of heat
from overhead streams in crude
distillation columns in DTA and SEZ
reduced steam consumption
Modification of crude preheat
PERFORM ACHIEVE AND TRADE (PAT)
TARGETS
RIL’s chlor-alkali unit at Dahej, Jamnagar
refinery and petrochemical units at Dahej,
Nagothane, Hazira and Vadodara and
115
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Sustainable Growth At Reliance
The Integrated Approach: Natural Capital and Climate Change
textile unit at Naroda have been given
specific energy consumption targets by
the Government of India under the PAT
scheme, a regulatory instrument to reduce
specific energy consumption in energy
intensive industries.
Air Emissions
RIL regularly monitors emissions as a
part of its environmental management
plan. In addition to GHG emissions, the
Company closely monitors the emissions
of Total Particulate Matter (TPM), Oxides of
Sulphur (SOX) and Oxides of Nitrogen (NOX).
The continuous emission and effluent
monitoring systems (CEMS) for emissions
and discharges, installed at the refinery
and petrochemical units, are now fully
operational and real time data is being
continuously transmitted to CPCB.
TPM
FY 2017-18
FY 2018-19
NOX
FY 2017-18
FY 2018-19
(000' MT)
(000' MT)
RIL’s refinery and all manufacturing units
are in compliance with the prescribed
permissible limits given by CPCB/SPCB
for air emissions, effluent quality and
discharge. All manufacturing units are
ISO-14001 compliant and have robust
systems in place to monitor environmental
footprints. The Company frequently
submits environmental monitoring
reports to CPCB/ SPCB, and annually
discloses environmental performance in
its sustainability report. No show cause
or legal notices were received from CPCB/
SPCB during the year FY 2018-19.
CLEAN WATER
At RIL, achieving minimum water
consumption at every manufacturing
location is a key priority. Hence, it employs
116
water and meet increasing standards of
environmental compliance.
Some manufacturing locations are already
zero-discharge sites and the Company is
working towards achieving zero-discharge
status at all its operating locations.
WATER RECYCLED
(000' M3)
FY 2017-18
FY 2018-19
PREVENTING SOIL CONTAMINATION
RIL focuses on using resources as efficiently
as possible and simultaneously works
Q ILLUSTRATION
Researching Carbon
Capture Storage and Use at
Jamnagar
Situation
To reduce carbon emissions ways
to capture and use the carbon
emissions from existing refinery
processes is essential.
Action Taken
RIL and Council of Scientific and
Industrial Research (CSIR) have
jointly developed a mixed oxide
stable catalyst to directly convert
methanol and CO2 to a high value
product e.g. Dimethyl Carbonate
(DMC). Process for capturing CO2 from
exit flue gas streams containing lean
concentration of the gas has also been
developed. Experiments conducted in
Fluidised Catalytic Reactor pilot plant
demonstrated greater than 90% CO2
removal efficiency.
Outcome
CO2 removal resulting in process and
cost efficiency for the plant while
reducing atmospheric CO2.
specific measures to ensure the optimum
use of water sources such as rivers, lakes
and reservoirs with the aid of local water
utility departments. Use of cutting-edge
technologies at the Jamnagar plant
enables desalination of sea water, thereby
saving water from fresh water sources.
In FY 2018-19, the total water withdrawal
across all manufacturing plants was 179.55
million m3 as compared to 167.41 million
m3 in FY 2017-18, which represents a 7.25%
increase. RIL ensures that all wastewater
generated is treated and meets all state and
central regulatory requirements.
Continuous efforts have enabled RIL to
increase the amount of recycled process
Effluent Treatment Plant
towards minimising emissions and waste
generated. The Company ensures that all
waste is sent to government-authorised
disposal agencies only. Effluents generated
are treated to meet the most stringent
state and central regulatory requirements.
During the reporting period, RIL's effluent
discharge from all manufacturing units
reduced by 7.26% compared to last year,
to 27.87 million m3. RIL has undertaken
initiatives such as converting the
organic waste into bio-manure by vermi-
composting method, thereby reducing
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)3.042.2936.7234.4369,363.8473,142.11Reliance Industries Limited | Integrated Annual Report 2018–19 Q ILLUSTRATION: CREATING VALUE FROM WASTE ACROSS THE VALUE CHAIN
Business operations
Customer outreach
Societal intervention
Situation
Situation
Situation
Increased consumerism and material
usage putting pressure on the
environment
Need to increase awareness around
uncontrolled littering and possible
solutions
Solid waste pollution at public places
Action Taken
Action Taken
Action Taken
RIL’s polyester plants are studying
the possibility of chemical recycling
to convert PET bottles to other
applications, namely r-PET, r-Filament
yarns and r-fibre. Parallelly, RIL has
also conducted plastic awareness
sessions in all its polyester sites, for
the employees, their families and the
society. These fibres play an important
role in textile, apparel, nonwoven and
filling applications. These sessions
focused on right use, storage, disposal
and reuse of plastics in everyday life.
RIL’s PET business has involved end
consumers in its recycling initiative.
It encourages end consumers to deposit
empty PET bottles at Reverse Vending
Machines (RVM) installed at Reliance
SMART stores, railway stations and
various other locations. To promote
PET recycling more effectively, there
is a discount coupon as a reward for
depositing bottles. These machines
spread awareness about material
circularity and alternate green products.
To support the initiative, the stores
conduct interactive awareness sessions
for all participants.
Reliance started 'Project VersoWah!'
to support an environmental activist,
Afroz Shah, solve the plastic pollution
issue. The focus was to reduce
manual intervention, clear the litter
from the beach and develop a robust
circular solution. Reliance identified
a mechanised solution for the beach
cleaning exercise. It is a unique
solution used in India for such a
cleaning operation. This has resulted
in recovering approximately 1.5
million kgs of waste in 180 days – that
much less waste in the ocean.
Outcome
Outcome
Outcome
Conversion of 36,000 MT of PET
waste (approximately 2 billion
bottles) per annum to Polyester
staple fibres. This resulted in
removal of non-biodegradable
waste from the environment and
diligent use of scarce resources.
Collection of PET bottle waste
across the value chain.
Versova beach has been cleaned.
It has helped in preserving the local
marine life and bio-diversity.
This initiative by Reliance has
helped in starting a global beach
clean-up movement.
117
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Natural Capital and Climate Change
the waste disposed. RIL also undertakes
stringent monitoring measures to prevent
spills during handling and transportation
of materials. During the reporting period,
the hazardous and non-hazardous
waste disposed from our hydrocarbons
operations were 89.69kT and 798.61 kT,
respectively.
PRESERVATION OF BIODIVERSITY
RIL regularly monitors the impact of its
operations on the surrounding ecosystem
by conducting periodic environment
impact studies through external experts.
It also carries out environment impact
assessments for all Greenfield and
brownfield projects to understand and
mitigate their impacts on the surrounding
environment and ecosystem.
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), 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).
Reliance has initiated an evaluation of its
environmental aspects using the Natural
Capital Protocol published by the Natural
Capital Coalition.
To promote biodiversity, more than 2.1
crore saplings have been planted across
all RIL sites till date. Apart from this, 6,151
acres of green belt has been added across
all manufacturing divisions since their
inception.
NATURAL CAPITAL PROTOCOL
Reliance has initiated the evaluation of
its environmental impacts with an aim to
include natural capital in decision-making
by using the Natural Capital Protocol. As a
part of the commitment towards Natural
Capital Coalition, Reliance has established
necessary management systems across
its operations for the conservation of
natural resources. The Company allocates
resources for new and expansion projects
by engaging with field experts to conduct
environmental impact assessment studies
and periodically monitor their impacts
on the local biodiversity. Hazira and
Dahej manufacturing divisions conducted
impact assessment on biodiversity and
marine ecosystem to determine ecological
sensitivities.
118
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 DILIGENT UTILISATION OF SCARCE
NATURAL RESOURCES
In order to improve its raw material
productivity and improve resource
conservation, RIL has taken various
measures such as recycling of used oil,
slop oil and oily sludge conversion of
organic waste into organic manure and
bio gas, recycle of spent catalysts through
authorised re-processors. In the last few
years, Reliance has put conscious efforts to
utilise more and more recycled PET bottles
as raw material for its petrochemical
operation and emerged as the single
largest recycler of PET bottles in India.
Additional initiatives include the increase
in the PTA bag size from 1.1 MT to 1.2 MT to
reduce use of packaging material, facilitate
higher transport efficiency at Dahej and
Hazira manufacturing divisions, and raw
material supply in bulk tankers that lead
to reduction in packing material, handling,
contamination and provided savings to
customers.
According to the Solomon’s energy intensity
index, RIL’s refineries are among the top
quartile performance. RIL’s key strength
identified as per Solomon study are energy
efficiency, operational availability and
utilised processing complexity. Since the
installation of the gasification, paraxylene
and Refinery Off-Gas Cracker (ROGC)
plants, the Jamnagar refinery is pegged to
be among the highest conversion global
refineries with no products that can be
classified as ‘bottom-of-the-barrel’.
DIGITAL ECONOMY
Reliance continually explores new ways
to make its operations more efficient by
putting technology to use for direct energy
savings, increasing renewable energy
sources and establishing a culture of digital
collaboration that lessens the need for
travel.
Q ILLUSTRATION
The ecosystem created by
Digital Services
Situation
Committing to smart and sustainable
ways of meeting growing
mobility needs
Action Taken
The digital ecosystem created
by Digital Services has enabled
new forms of communication.
Video conferencing has helped to
reduce travel time and resulted in
agile decision making, which in
turn, positively impacts business
productivity. For households,
video calling has become a very
common way of communication,
thereby reducing the geographical
boundary. The reduction in travel
is also contributing to lower carbon
footprints of operations.
Outcome
The data revolution brought about
by Jio has facilitated the use of video
conferencing across the country,
thereby avoiding travel emissions.
Jamnagar Green Belt
119
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Human Capital and People Connect
Hital R.
Meswani
Ashwani
Prashara
Sanjay
Jog
Reliance seeks to create a working
culture which is people-centric,
inclusive, diverse and progressive.
The Company wants to imbibe a sense
of pride in its people, so much so that
they reckon RIL as the best company
to work for. This is bolstered by our
approach to exponential learning
opportunities which is augmented by
a digitally connected ecosystem.
With the launch of pioneering
platform-based learning and
development solutions, the Company
is setting the stage for its burgeoning
millennial population to feel more
empowered, secure and content with
their jobs.
The scale of Reliance’s operations
lead to several indirect benefits.
One of the most significant of these is
the creation of indirect employment.
With over 50 lakh people contributing
to Reliance’s growth story, RIL gives
back in terms of value creation for all.
120
MATERIAL TOPICS
OTHER FRAMEWORKS REFERENCED
API/IPIECA, UNGC, NVG-SEE, NGRBC, UNGP
1 Talent Attraction and Retention
2 Health and Safety
3 Labour management
4 Employee Diversity
UNITED NATION’S SDGs
PMO’S INITIATIVES SUPPORTED BY THE NITI AAYOG
1. Atal Innovation
2. Support to
Mission
Training and
Employment
Programme (STEP)
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Q KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
Total number of Reliance employees
1,94,056
1,87,729
FY 2017-18
FY 2018-19
RIL HSE Expenses (` in crore)
664
440
FY 2017-18
FY 2018-19
Cumulative ideas submitted on Mission
Kurukshetra innovation platform
23,000
21,000
FY 2017-18
FY 2018-19
Total training hours in Reliance are over
66.93 lakh+
man-hours
Employees from over 16 nationalities
Career Acceleration Program (CAP),
Competency Assurance System (CAS) and
Corporate Graduate skills programme for
employees to groom them for leadership roles
Q KEY 10 YEAR HIGHLIGHTS
Future-ready human resource with Reliance
DNA and values
Exponentially high indirect employment
50 lakh+
FY 2018-19
Collaboration with world-class universities
Focus on millennial workforce
48.8%+
are under the age of 30
RIL on India’s Top 25 'Best Companies
to Work For' in Business Today’s
‘People Strong Survey’ for the 3rd
consecutive year
(cid:26)(cid:25)(cid:31)(cid:31)(cid:31)
(cid:27)(cid:31)(cid:31)
DNA OF RELIANCE
1
India-focused history
2 Employee-centric culture
3 United values and behavior
4 Focus on skilling and reskilling
Employees are well-aligned to the Company
(cid:29)(cid:31)(cid:31)
values from strategy to execution.
(cid:28)(cid:31)(cid:31)
2,00,000
1,60,000
1,20,000
80,000
40,000
0
2,00,000
1,60,000
1,20,000
80,000
40,000
0
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
(cid:30)(cid:31)(cid:31)
(cid:31)
(cid:26)(cid:25)(cid:31)(cid:31)(cid:31)
(cid:27)(cid:31)(cid:31)
(cid:28)(cid:31)(cid:31)
(cid:29)(cid:31)(cid:31)
(cid:30)(cid:31)(cid:31)
(cid:31)
121
61,19558,73065,13571,78783,52897,5601,22,0321,40,4831,87,7293094024304406641,94,056 Employee Strength for Reliance (Nos.) HSE Expenses (` in crore)Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Human Capital and People Connect
VALUES AND BEHAVIOUR
The Company’s success relies on the
continued support of its vastly diverse
human capital. To bring consistency in
approach and behaviour Reliance places
emphasis on aligning its people with a
strong value system, which is underlined
by six core values, viz Customer value,
Respect, Ownership mindset, Excellence,
One team and Integrity.
RIL has been recognised as an employer
of choice, and has been ranked 10th in the
2019 'LinkedIn Top Companies: Where India
Wants to Work Now' list, the only non-tech
/ non-IT company to make it to the top 10
companies in the list.
RIL on India’s Top 25 'Best Companies
to Work For' in Business Today’s
‘People Strong Survey’ for the
3rd consecutive year
RIL fosters a culture that is performance-
oriented, meritocratic and transparent.
RIL focuses on holistic development of
employees’ well-being at a professional
and personal level. Through engagement
initiatives, learning platforms, wellness
and safety programmes, and sustainability
initiatives, the employees across
businesses and geographies are connected
to each other and the Company – RIL is
‘connecting everyone, everywhere’.
CREATING EMPLOYMENT
OPPORTUNITIES
The Reliance Group is one of the biggest
private sector employers in India that
has created employment for more than
1.9 lakh individuals. With the help of a
robust, consistent and meritocratic HR
framework, Reliance continues to maintain
a progressive people environment, where
purpose driven talent is attracted and
engaged.
RIL’s entrepreneurial culture aims to
motivate the young generation to play an
integral role in the Company’s growth.
122
PEOPLE (RELIANCE GROUP) (%)
6
44
50
Stakeholders
Less than 30 years: 50% – 96,624
30 to 50 years: 44% – 86,548
More than 50: 6% – 10,884
PEOPLE BREAKDOWN FOR RIL
As on March 31, 2019, Reliance Industries
Limited employee strength was 28,967
and total number of female employees
was 1,671.
EMPLOYEE BREAK-UP (RIL) (%)
19
1
3
4
16
58
Stakeholders
Leader
Manager
Executive
Non-Supervisory
Apprentice
Trainee
FOCUS ON HIRING MILLENNIALS
Reliance strongly believes in its millennial
employees and encourages them to be
a vital part in the Company’s growth
and development. The cadre building
programmes such as Reliance Emerging
Leaders Programme (RELP) and Graduate
Engineering Trainee (GET) Programme
are the key routes through which high
potential entry level talent is hired to help
build a young talent pipeline for all the
businesses. With an increased focus on
summer internship hiring, the Company is
steadily establishing Reliance Summer as
the primary route of hiring young talent.
Reliance visits premier B-Schools and
Engineering institutes including Indian
Institutes of Management (IIMs) and Indian
Institutes of Technology (IITs) to ensure
intake of high-quality talent.
Further, engagements with institutes like
the Aspire Leadership Connect Series,
Alumni Connect sessions, online quizzes
and social media engagement have
positioned Reliance as an aspirational
brand and a preferred talent destination.
TALENT MANAGEMENT
RIL endeavours to identify and
develop high potential talent within
the organisation and provide them
with accelerated learning and growth
opportunities. There are various initiatives
taken by the organisation to achieve the
same, including on-the-job training, digital
learning, coaching and workshops. Some of
the prominent ones are:
TALENT REVIEWS
Talent Reviews are conducted annually for
all employees at the leadership level. The
process helps identify, assess and develop
people to meet the leadership roles.
CAREER ACCELERATION
PROGRAMME (CAP)
Initiated in 2014, CAP is one of the flagship
cadre development programmes for middle
level managers and provides them with
multi-faceted learning, development and
mentorship opportunities. It grooms them
for senior level leadership roles.
SAPPHIRE COACHING PROGRAMME
The programme provides focused and
customised development opportunities
to people managers in the manufacturing
business. It emphasises on 2 key tenets of
being a successful leader, i.e. Delivering
Performance and Developing People.
It uses the Growth, Self-Awareness,
Authenticity (GSA) Development Model of
Leadership Excellence. The fifth batch of
Sapphire was kicked-off in 2018.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 STEP-UP PROGRAMME
A highly focused programme was
introduced in 2015 to prepare high
potential employees to be skill-ready for
their transition into next level leadership
roles in the organisation. Over the last
4 years, around 300 employees have
benefitted from this programme.
DIVERSITY AND INCLUSION
The employees at RIL represent
diverse nationalities, culture, gender,
abilities, generations and experiences.
The Company strives to create a
comprehensive workplace environment
and leverages its rich and diverse human
resource with a sustainable competitive
advantage where each one is provided with
an opportunity to participate, contribute
and grow.
Diversity and Inclusion (D&I) at Reliance is
fully integrated into its people strategy and
broadly focuses on three areas – Gender,
Ability and Generation. RIL recognises the
intersection among these three areas and
others such as work and life experiences
and socio-economic context. RIL constantly
works towards making its policies inclusive
for all.
Based on specific needs of women
employees, the Company has developed a
maternity support programme along with
reasonable adjustments such as reserved
parking, specific learning sessions and
Employee Resource Group (ERG) for new
parents. The leave policies include 182 days
of Maternity Leave followed by 6 months
of half day leave policy for new mothers,
84 days leave policy for adoptive parents
and commissioning mothers respectively.
RIL also provides 5 days of Paternity Leave.
Reliance undertakes pro-active measures
such as 24*7 toll free helpline for women,
D&I related learning interventions and
self-defence workshops on a regular basis.
Jio’s D&I programme was launched by
Ms. Isha Ambani. The first phase focused on
training employees on unconscious bias,
diversity sensitisation and nurturing gender
diversity along with a series of initiatives
such as Fireside Chat with accomplished
women, Meet and Greet sessions with
leaders of Jio, Tech Talks for women in
technology, etc.
Reliance Employees
123
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Human Capital and People Connect
Q ILLUSTRATION
Gender
Generation
Skill
R-Aadya – a symbol of women
empowerment
The Ultimate Pitch – Engaging
India’s talented youth
Author Hunt – celebrating diversity
through employee stories
Action Taken
Action Taken
Action Taken
‘R-Aadya–Awaken the Senses’
is Reliance’s flagship mentoring
programme designed for women
across Reliance with an objective to
prepare them for leadership positions.
Launched by Ms. Isha Ambani, it is
currently in its third year and has
covered 112 participants since its
launch. Selected employees from
different businesses are assigned
internal mentors from senior
leadership, throughout the span of the
programme, with other interventions
and engagement sessions to make a
wholesome learning experience.
Centred on the entrepreneurial
DNA of Reliance, The Ultimate Pitch
(TUP) is Reliance’s flagship business
school engagement competition. The
fourth edition of TUP was launched
across 55 leading Indian B-Schools to
assess prospective candidates with
creative business ideas to transform
society and deliver superior customer
experiences.
In addition to a cash prize, the winners
also got to be mentored by Reliance’s
JioGenNext and work at Reliance.
The Readify Author Hunt is a story
writing initiative undertaken
for employees from different
backgrounds and cultures launched
with the intent to celebrate diversity.
Organised by Readify, the contest
portrayed stories in different genres
under fiction and non-fiction
categories.
250 stories were received in the
first round, which were screened by
Readify editors. The shortlisted stories
were again evaluated by a panel of
eminent writers, associated with
Readify.
Outcome
Outcome
Outcome
R-Aadya, as the symbol of women
empowerment, has become the
gender diversity brand of the
Company. Here, participants take
away strategic business planning
tools, business acumen,
cross-functional learning and a
sense of community.
TUP 2019 received wide media
coverage and generated around
10,99,923 impressions on Facebook.
In addition to engaging employees,
Reliance is also nurturing authors, and
sharing their voice with the world.
This competition helped Reliance as
an employer to harness fresh young
talent.
34 winners were selected, under
different categories and their stories and
names were published on the website
http://readify.in/rah-reliance/
The Ultimate Pitch has been recognised as the 5th Most Prestigious B-School Competition by Dare2Compete Awards.
The Ultimate Pitch 4.0
124
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Q ILLUSTRATION
Ability
Saksham – appreciating
PwD employees
Action Taken
With several inclusivity initiatives that
started in 2016, Reliance Retail today
employs over 1000 PwD (Persons with
Disabilities) employees PAN India.
In 2019, Retail launched ‘Saksham–
Transforming Capabilities’, a
programme dedicated to highlight
the strengths and contributions of its
specially abled associates.
Over 100 PwD associates attended
the programme at the head office
in Mumbai in January 2019, which
included various performances and
leadership talks.
Outcome
Through Saksham, PwD employees
found a platform to share their
stories and experiences.
“R Aadya has been a transformational
Initiative. It has been a platform
for women across geographies and
business units to interact, learn
and unlearn from each other. This
cross-functional shared learning
has been an enabler and a support
system to accomplish our goals. The
mentorship sessions with the veterans
of Reliance and focused training to
unleash the potential in oneself has
helped in the long run. It has been an
opportunity and a matter of pride to
be associated with it.”
EMPLOYEE ENGAGEMENT
RIL has conceptualised and has regularly
implemented multiple initiatives to
enhance employee engagement, thereby
leading to a more productive work
environment.
BRING YOUR FAMILY TO WORK
Bring Your Family to Work (BYFW) is an
initiative that fills employees’ family
members with pride and brings both home
and work families together. This year’s
BYFW event witnessed around 15,000
colleagues and their family members,
participating in a plethora of activities and
awareness initiatives. ‘Mitra’ robot marked
more than 6,000 unique interactions, and
kiosks of RelWood and R|Elan received over
1,000 queries expressing interest to buy
Reliance products in the market. More than
2,000 saplings and 9,000 recycled bags were
given as souvenirs to raise environmental
awareness. The event also garnered over
5 lakh impressions on LinkedIn, Facebook
and Twitter.
Bring Your Family to Work Week 2019
Neha S Agrawal, Jio
RELIANCE FAMILY DAY (RFD)
Reliance Family Day (RFD) is one of the
biggest corporate celebrations in India,
reflecting the spirit of ‘One Reliance’. Every
year, RFD is celebrated to commemorate
the birth anniversary of Shri Dhirubhai
Ambani. A host of indoor and outdoor
activities, before and during the event,
were planned for employees and their
families as part of the celebrations of
RFD ’18. In addition, several awareness
campaigns were carried out and blood
donation camps were organised to urge
employees to donate blood.
LEARNING AND DEVELOPMENT
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.
During FY 2018-19, Reliance imparted 66.93
Lakh hours of training to its people across
the Group.
Learning and Development at Reliance
supports in building capabilities both for
individuals and the organisation at large.
Towards this end, it envisages that:
• Learning becomes a way of life in RIL
(democratisation of learning)
• Learning becomes a strong business
enabler
• R-University becomes a well
respected brand
• The future of learning fully integrates
technology solutions and HR Platforms
• Employees are reskilled and upskilled to
meet challenges of the future
125
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Human Capital and People Connect
The organisation focuses on both technical or functional capability building and behavioural or managerial capability building.
Functional and technical capability building is anchored by business embedded
functional academies, which offer a wide range of business aligned learning programmes
to build technical, functional and business capabilities for the employees. The academies
include:
Functional
and technical
capability
Academies
Behavioural
and managerial
capability
The Learning
Trek
k
r
o
w
e
m
a
r
f
t
n
e
m
p
o
l
e
v
e
D
d
n
a
g
n
n
r
a
e
L
i
For behavioural and managerial capability building, an innovative mechanism called The
Learning Trek has been conceptualised. This signifies that, similar to a trek, capability
building is a stretch on one’s time and effort and enables one to reach multiple peaks.
The four key Learning interventions in this framework include:
1. Base Camp – Learning by Mandate:
It will strengthen alignment of newly
hired employees with organisational
culture, processes and practices, thereby
accelerating their productivity and time
to job-readiness.
3. Great People Skills (GPS) – Learning by Role:
GPS consists of role-specific interventions
for people managers. Much like a GPS,
this will help one assess where one is with
their people manager capability and help
them build it further.
2. Ascender – Learning by Choice:
It’s a buffet of interventions focusing on
behavioural and soft skills development to
facilitate ‘ascent’ towards career excellence.
Learning in Ascender is by choice.
4. Star Trek – Learning by Invitation:
STAR Trek is a by-invitation accelerated
learning path for identified high potential
employees through bespoke experience
and exposure-based learning programmes.
LEARN ANYTIME, ANYWHERE
In keeping with RIL’s philosophy
of providing learners the ability
to learn anytime, anywhere
and on any device, the Learning
function aims to develop
'Best-in-Class' digital learning
solutions in partnership with
the 'Learn and Grow' Platform.
Using technology, RIL also
offers employees a highly
interactive, collaborative and
device-agnostic social learning
platform
Q ILLUSTRATION
Learnet
Situation
Platform for social learning and knowledge sharing
across all levels, businesses, functions and locations
• Empowerment and democratisation of learning
• Agility and fluidity of learning
• Seamless blend of learning and work
Lynda.com
Situation
Partnered with Lynda.com to provide
high quality digital video tutorials by
experts to all employees, across levels
and roles
Impact
Across Reliance–24,525 employees have accessed the
portal, sharing 1,739 self-recorded video and text blogs
or discussions so far with 5,684 comments and 8,577 likes
Impact
Across Reliance – 54,600+ employees
are active on the portal. They viewed
over 2.7 million videos and completed
over 59,000 course certificates
• Social-restructuring among employees
• Internal crowd sourcing, breaking silos across functions, hierarchy, geographies
• Promoting the concept of anytime, anywhere, anybody learning
Outcome
126
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19
LEARNING WEEK
Spectrum is a week-long initiative aimed at strengthening the learning culture at Reliance. In its third edition in 2018, the initiative
witnessed around 30,000 employees participating in a plethora of learning activities, where one could learn anything right from how to
play the flute to using the collaborator quotient, to how to beat pollution.
Spectrum was intended to empower the academies to plan and execute learning interventions, and create heterogeneous teams to
sustain the learning interventions across the Company. Other highlights of this unique and engaging learning intervention include:
The event garnered around
65,984
impressions on Facebook
40,219
likes on the Spectrum app
60%
learning (expert talks) were delivered
using digital technologies
67,068
videos viewed on Lynda.com
during Spectrum
Experience Zone
across locations
98%
of the advocates believe that Spectrum
is an enabler to learning
Training workshop
127
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Human Capital and People Connect
TRAINING TO ENSURE RELIABLE AND SAFE OPERATIONS–CAS
To ensure reliable operation delivery and safety competence among frontline staff, RIL has deployed a comprehensive Competency
Assurance System (CAS) in which manufacturing teams have established area specific job competency profiles and competency-based
learning content to train and develop all job appointees in asset facing roles. As part of the CAS process, employees go through robust self
and managerial assessments followed by assurance through online quizzes and field task tests. Over 8,500 customised quizzes and task
tests for each job role and work area have been defined.
Over 6,200 asset facing employees had enrolled into this programme in the past year. Over 4,000 employees have been fully certified for
their role specific competencies and many more are in advanced stages of the assurance process.
Q ILLUSTRATION
Impact of employee training on product
loss reduction
Karm Yogi Awas – State-of-the-art residential
infrastructure for construction employees
Situation
Situation
Using training as a tool to reduce the product loss
at retail outlets
Vast number of employees to support the construction of
new projects at Jamnagar.
Action Taken
Action Taken
A learning programme was designed to improve product loss
reduction across certain retail outlets. Under this programme,
an intensive 7-day training was conducted on decantation and
malpractices identification by 15 high caliber trainers. Retail
outlet specific gaps were identified and training was delivered
on mitigation actions.
The ‘Karm Yogi Awas’ (KYA) project involved bringing together
a large diversified group of over 1.3 lakh workers for the
construction of the world’s largest petrochemical project at
Jamnagar. With multiple labour camps, KYA had a network
of support teams across security, IR, medical services and
corporate affairs to support the KYA Administration. Every
KYA had facilities catering to health, hygiene and welfare. The
facilities included shopping centres, ATMs, meditation centres,
central transportation system, schools for children and Mahila
Prashikshan Kendra to name a few.
Outcome
Outcome
Phase I: 44% reduction in the Product Loss Recovery in 47
retail outlets with a 59% increase in sales volume of MS
and HSD (Petrol and Diesel amount per Kilo Litre)
Phase II: In 433 retail outlets, reduction of 65% in the
product loss recovery amount per Kilo Litre (KL) of fuel
and reduction of 62% in operator loss related recoveries
Phase III: Positive feedback from channel partners
(operators and dealers) received post training at 900+
Retail Outlets
Recognition: The project has received multiple award's
including the Gold Award in 'Best Results of a Learning
Program' category by Brandon Hall Group, 2018
128
Employees saved travelling time. Through short term
skill development programmes, approximately 63,000
skilled workers were added. Availability of highly engaged
Employees was driven by the provision of good living
conditions, hygienic environment and engagement activities.
Karm Yogi Awas
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 HEALTH AND WELLBEING
1) EMERGENCY ASSISTANCE
2) MITIGATING HAZARDS
3) PHYSICAL HEALTH
4) EMOTIONAL HEALTH
REFERS
TBHRA
Reliance Health Index
Project WISH
Reliance Employee and Family
Emergency Response Services
(REFERS) offers continuous
assistance in case of any medical,
accident, fire and security
exigencies.
Task Based Health Risk Assessment
(TBHRA) is a unique programme
that has given a focused
approach to evaluate the effect of
occupational hazards specific to
the employees’ tasks.
Reliance health index is an
indicator for the health score which
emerges out of considerations of
parameters like family and past
history, exercise, smoking and
alcohol addiction, etc.
Based on the score, employee’s
health check-ups and periodic
doctor consultations are planned.
Project WISH–Work life
Improvement for Safety and
Health, is a unique work-life
balance project which focuses on
the mental and emotional health of
employees.
Impact
Emergency services are
provided across the country
through strategic tie-ups with
multi-specialty hospitals.
State-of-art facilities at site
medical centres extend prompt
medical and emergency care 24X7.
TBHRA provides exposure data
linked to each employee or group
of employees during medical
surveillance.
Reliance health index is helping
in promoting wellness culture
and healthier lifestyles among
employees and family members.
Project WISH has initiated
recognition of mental health
issues at RIL workplaces and
a committed response from
employees and family members
across locations. This year 252
work-life balance sessions were
conducted engaging over 20,000
participants.
5) HOLISTIC WELLNESS
6) SAFER WORKPLACE
7) HEALTHY LIVING
R-Swasthya
CASHE
Sports
R-Swasthya provides for preventive, curative
and promotive aspects of not only the
physical but emotional, mental, spiritual and
financial aspects of wellness. Initiatives are
designed to educate employees about lifestyle
modifications to prevent early cases and
complications of chronic lifestyle disorders.
The Change Agents for Safety Health and
Environment (CASHE) movement is a step
towards inculcating the best practices in
the field of occupational health, safety and
environment. Through monthly and yearly
reviews, and project charter, CASHE helped
create a culture of healthy and safe workplace.
Impact
This initiative is creating an organisational
culture promoting a healthier lifestyle.
It advocates physical activity inputs
and dietary changes. Additionally,
Reliance is addressing the high burden of
non-communicable diseases with clear,
concise and realistic wellness initiatives for
prevention of diabetes and hypertension
among employees and their families.
The programme started in 2003, and
has helped in reducing HSE risks across
organisations and over thousands of projects
have been identified and control measures
implemented till date.
In FY 2018-19, 1,326 CASHE projects were
carried out across RIL.
The wide range of facilities in RCP include
Cricket and football stadiums, 2 tennis courts,
1 basketball court, 5 badminton courts, 2
volleyball courts, Marathon running training on
campus, bicycles across facilities, Play areas
with TT, chess, carom across campus, Box
cricket, 2 fully equipped gym (1 gym open 24x7),
with zumba, yoga, meditation, aerobics, and
contemporary dancing classes; Townships have
similar facilities.
Greater involvement in sports would lead to
healthier living, help fight lifestyle diseases
and bring a sense of discipline in lifestyle. It
also helps build a sense of community among
employees and their families.
Additionally, our physical and digital assets help maintain a healthy working environment for all Reliance employees. The JioHealthHub,
an IT-enabled platform, simplifies management of health records by enabling the users to upload medical data and maintain a medical
profile. Additionally, RIL owns web based Health Management System (HMS), which is a robust databank containing health records of all
employees. The Health Score of all employees and their spouses based on their periodic medical examinations are maintained within the
HMS. Good Health and Health Improvement awards are given to employees across all locations based on system driven metrics, and acts
as a motivation tool for creating wellness culture among employees and family members.
Occupational Health Centres (OHC) located at each of the manufacturing locations and corporate office offer preventive, promotive,
curative and rehabilitative health services. These OHCs are equipped with state-of-the-art diagnostic and therapeutic equipment with
129
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Sustainable Growth At Reliance
The Integrated Approach: Human Capital and People Connect
accreditation from leading agencies like
Joint Commission International (JCI),
National Accreditation Board for Hospitals
(NABH), and National Accreditation Board
for Laboratories (NABL).
SAFETY
The Company’s safety principles and
practices are:
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.
The Company is committed towards
promoting a safe working culture for all its
employees and stakeholders. Reliance’s
ultimate goal is to establish a zero accident
work environment. To ensure this, all
manufacturing locations have a fully
equipped and well-qualified Health, Safety
and Environment (HSE) and process safety
organisation, which is supported by a
Centre of Excellence (CoE) at the Corporate
to bring in subject matter expertise and
governance in various fields of HSE.
To improve on the existing practises and
interpret incidents, RIL has implemented
‘Learning from Incidents’ across all its sites.
Reliance has also developed a systematic
approach to identify and define potential
risks and protective measures at every
facility level, on an annual basis. All the
tools for risk management, incident
management and Operating Management
System (OMS) are digitalised to bring ease
and uniformity across the organisation.
Some of the safety infinitives undertaken
within manufacturing are given below.
DEVELOPMENT OF RISK REGISTERS
This year, Reliance developed risk registers
for more than 45 technologies for every
single manufacturing plant. These
registers form the basis for Reliance’s risk
management system, and help ensure
that right barriers are in place to prevent
incidents.
130
HSE CULTURE
The HSE culture transformation project
focuses on further enhancing the safety
leadership and engages operations to
create a safe workplace for all. Over the
past year, more than 1,000 workshops were
organised at all sites and within layers in
the organisation. This was seen in a positive
response by employees in culture surveys.
LIFE CAMPAIGNS
During the year, various safety initiatives
were rolled out to further reduce incidents.
The LIFE campaigns were based on data
analysis of past years’ incidents and
learnings from these incidents were
spread across all sites. As a result of these
campaigns, incidents related to falling from
heights, electrical safety, hot work, and
work with toxic gases have significantly
reduced. Also, process safety and fire and
smouldering incidents have reduced over
25% compared to last year.
ETHICS AND HUMAN RIGHTS
RIL’s Code of Conduct defines the
behaviour expected from all the employees
and stakeholders and practices along
with the policies and systems for effective
implementation. The Company’s Code of
Conduct ensures that all its employees,
suppliers and vendors are required to
respect human rights of not only each
other, but also of the communities in which
they operate. RIL has developed a set of
policies, codes, and guidelines to govern
its directors, senior executives, officers,
employees (whether permanent, fixed term
or temporary) and third parties, including
suppliers and business partners associated
with RIL. The Company takes into account
global standards and endeavours to comply
with all global norms on human rights,
including the principles outlined in the
United Nations’ Universal Declaration of
Human Rights.
An Ethics and Compliance Task Force
(ECTF) comprising the Reliance Group’s
Executive Director (Chairman, ECTF),
General Counsel, Group Controller and
Group Company Secretary has been
established which oversees and monitors
implementation of ethical business
practices within Reliance. The task force
meets once in three months to review the
complaints and incidents and reports them
to the Audit committee. The Company has
established a vigil mechanism and a whistle
blower policy for employees and directors
to deal with issues related to ethics,
noncompliance and violations
of the company’s Code of Conduct. The
whistle-blower can make a protected
disclosure either to the Ethics and
Compliance Task Force or directly to the
Audit committee via email, telephone or
through a letter. RIL’s Code of Conduct,
Vigil mechanism and Whistle blower policy
form the foundation of the Company’s
commitment towards ethical conduct
at all levels.
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). An internal
complaint committee has been set up at
all operations locations where employees
can register their complaint 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.
During the reporting period, there were
no cases of child labour, forced labour,
involuntary labour, sexual harassment and
discriminatory employment.
Reliance continues to report its progress
against the 10 principles of UNGC in the
Sustainability report. The 10 principles
cover the topics of human rights, labour,
anti-corruption and environment.
FREEDOM OF ASSOCIATION
At various sites, Reliance has recognised
employee unions and associations, which
encourage the employees to participate
in open and constructive dialogue with
the management, without fear of reprisal,
discrimination, intimidation or harassment.
Almost 100% of the non-supervisory
permanent employees at its manufacturing
locations are covered under the collective
bargaining agreements with trade unions,
which also comply with the local and
national laws.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 GOVERNANCE AND INTEGRATION
The HR function continues to raise the
bar of excellence in people policies,
practices, systems and data. This has
been accelerated by a mature Human
Resources – Governance, Integration and
Assurance Team. This team focuses on
strategically driving key people-focused
transformational initiatives across Reliance
along with adoption of progressive HR
policies and institutionalising governance
meetings – from team level to the highest
governing body.
INNOVATION
Reliance believes in creating value via
innovation for all its stakeholders and has
always demonstrated that innovation is
in its DNA. This ethos led to sparking the
equity cult in India, setting up the world’s
largest grassroots refinery, and paved
the way for the largest retailer, fulfilling
aspirations of millions and ushered in a
digital revolution. Reliance’s innovations
have touched many facets of life in India,
including transportation, retail and
healthcare.
Reliance focuses 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.
INNOVATION PROGRAMMES
Inspire
Adopt
Apply
Design
Engage
LEAP
Innovation thrives within
inspired minds. LEAP
was born with the aim
of providing people at
Reliance access to global
thought and innovation
leaders through interactive
sessions.
7 Innovation Habits
The 7 innovation
habits programme aims
at empowering
entry-level and middle-
level employees at Reliance
with specific innovation
skills and problem-solving
capabilities.
Mission Kurukshetra
Mission Kurukshetra
(MK) is a step towards
democratising creativity
and innovation within the
organisation.
D4
In this action-oriented
programme, participants
identify innovation
opportunities and are
trained to use cutting
edge innovation tools
and techniques to find
innovative solutions to
business problems.
JioTalks – talks that inspire
JioTalks is our people
interactive platform
with state-of-the-art
infrastructure, aimed at
inspiring employees with
an exclusive opportunity to
interact with the brightest
minds from across the field.
Outcome
Since inception, 47
LEAP lectures have been
organised. During the year,
eminent speakers included
Anshu Gupta of Goonj,
Olympian shooter Abhinav
Bindra, Israeli tech leader
Saul Singer, and Ola
co-founder Bhavish
Aggarwal.
Impact
Till date, 33 workshops of
7 Innovation Habits have
been conducted.
MK is now a treasure
trove of more than 23,000
employee ideas that have
a combined potential to
create significant value for
the organisation
Applying design thinking
principles to deliver first-to-
world innovations.
Since establishment,
88 events have been
conducted at JioTalks
auditorium. Last year’s
events included eminent
speakers like Dr. Pawan
Agrawal (Dabbawala),
Mohandas Pai, Prahlad
Kakkar, Raveena Tandon,
Kris Gethin and Jamie
Angus.
Inspire a culture of thinking
big about Reliance, the
communities it operates in
and the whole country
Empower Reliance
employees to inculcate
innovation skills
Enable a culture of internal
crowd sourcing
Drive innovation on live
opportunities and create
a vibrant culture of
innovation
Leave a positive influence
on the employees with an
exciting and inspirational
session
131
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Manufactured Capital and Product Stewardship
Hital R.
Meswani
Pawan Kumar
Kapil
B Narayan
Par
Singh
Deepak
Datta
Ravinder
Batra
A. Srinagesh
Lalit
Kasliwal
Reliance has tapped into some of the
latest advances in manufacturing
technologies to make its
manufacturing plants smarter,
safer and environmentally more
sustainable. The Jamnagar expansion
project is one of the world’s most
complex and highly integrated
project. Through this project, the
Company has re-defined refining and
petrochemicals integration. Not only
has investing in these megaprojects
and complex supply chains augmented
capacity and enhanced complexities,
it has also enabled the Company to
improve energy efficiency and reduce
operating costs per unit of output.
Our next generation infrastructure,
network and key partnerships
enable us to have differentiated our
businesses and deliver compelling
customer experiences. In the digital
business, the scale of fiber and tower
infrastructure setup is unprecedented
and future ready. Through adoption of
new technologies such as 3D printing
Reliance has entered the world of
advanced materials and composites.
The Company’s retail footprint is ever
expanding, adding more stores
year-on-year and increasing penetration
to more rural as well as urban areas.
132
MATERIAL TOPICS
OTHER FRAMEWORKS REFERENCED
NVG-SEE, NGRBC
1. Raw Material Security
2. Managing Systemic Risks from
Technology Disruption
3. Data privacy and security
4. Digital Inclusion
5. Asset Utilisation and Reliable
operations
6. Security and asset protection
UNITED NATION’S SDGs
PMO’S INITIATIVES SUPPORTED BY THE NITI AAYOG
1. Make in India
2. Digital India
3. Atal Innovation
Mission
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Q KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
Total Asset Value (` in crore)
10,02,406
FY 2018-19
8,16,348
FY 2017-18
Grades of crude processed
64
65
FY 2017-18
FY 2018-19
Q KEY 10 YEAR HIGHLIGHTS
• RIL formed
strategic
alliance
with BP to
enhance its
deep water
exploration
and
development
capabilities.
• RIL set
a global
benchmark
by achieving
a peak
operating
rate of 120%
at Jamnagar.
• RIL
commenced
production
from KG-D6.
• RIL entered
into 3
partnerships
in shale gas
in North
America.
Petrochemical production
37.7 MMT
FY 2018-19
32.5 MMT
FY 2017-18
Gross refining margin
US$9.2/bbl
FY 2018-19
US$11.6/bbl
FY 2017-18
No. of stores operated (Retail)
10,415
FY 2018-19
7,573
FY 2017-18
Complexity index of Jamnagar supersite
has increased from earlier 12.7 to 21.1, a
66.1% boost with the start-up of Jamnagar
expansion projects
Refinery utilisation levels during the year
remained above 5 year average
Reliance Retail operates the most extensive
store network in the country
World’s fastest store expansion, added
about 10 stores a day in last 2 years
Coverage area (Retail)
22 million sq.ft.
FY 2018-19
17.7 million sq. ft.
FY 2017-18
Jio is the world’s fastest growing mobile
data network with 71% of total industry 4G
data traffic
No. of fuel outlets operated
1,372
FY 2018-19
1,313
FY 2017-18
Digital Services witnessed about 95% y-o-y
growth in daily voice traffic, with lowest call
drop rate at 0.1%
Crude throughput of 68.3 MMT
Over 500 million footfalls in Retail stores
Enabling and creating digital ecosystem for
India
Jio is the fastest 4G operator with the
highest average download speed of 20.9
mbps, more than twice that of nearest
operator
High speed fiber connectivity at homes and
enterprises across 1,600 cities
• RIL made 2
significant
discoveries in
KG and Cauvery
basin.
• Reliance Retail
achieved over
10 million sq. ft.
of retail space.
• RIL commissioned
new Paraxylene (PX)
capacity at Jamnagar.
• RIL commenced
commercial production
from CBM fields at
Sohagpur.
• Completed
Ethane project,
with Ethane
Cracking at
Nagothane.
• Reliance
Jio crossed
300 million
subscriber
mark.
• Reliance
acquired the
control of
Network18
Media.
• Constructed
world’s largest
petcoke
gasification
unit at
Jamnagar.
• Reliance
Jio reaches
186.6 million
subscribers.
• Commissioned
the world's
largest ROGC
complex.
• Reliance Retail
launched its
own brand of
smartphones and
television.
• Reliance Jio
commenced
operation and
became the only
operator with pan
India presence.
• Refineries
achieved
record crude
processing of
68.5 MMT.
133
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Manufactured Capital and Product Stewardship
PUTTING MANUFACTURING EXCELLENCE AT RELIANCE INTO PERSPECTIVE
Concrete
used in Jamnagar
expansion
equivalent to
13x
Burj Khalifas
Steel used to
build Jio towers is
equivalent to
140x
Eiffel Towers
Retail Store area
equivalent to
over 380
football fields
3 million m3 of concrete
used in Jamnagar
expansion project
Steel used to build about 1,75,000
Jio telecom towers
Retail stores cover
22 million sq. ft. area
CAPACITY
Reliance has emerged as the world’s largest
player in refining and petrochemicals.
Jamnagar supersite ranks 1st in the
world, in complexity-barrels, defined as
complexity index times crude throughput
in barrels per day. The Complexity Index
of Jamnagar supersite, as per KBC, a
Global refinery consultant, has increased
from earlier 12.7 to 21.1 or a 66.1% boost
with the start-up of Jamnagar expansion
projects, including ROGC and downstream
units, Paraxylene complex and Petcoke
Gasification complex. Reliance Retail has
transformed the retail landscape in India.
About 10 stores a day have been added
over the last 2 years to cross 10,415 stores
across 6,600+ towns and cities. Digital
services continue to scale up with 306.7
million subscribers translating this to a per
capita usage of 10.9 GB and 823 minutes
per month.
SMART MANUFACTURING
RIL promotes the culture of innovation and
explores new opportunities for enhancing
efficiency in business operations. The
Company’s improved performance
in terms of integrity, reliability and
effectiveness of business is an outcome
of adopting state-of-the-art technologies
134
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. The Company
has implemented the development and
implementation of Industrial Internet
of Things (IIoT) based solutions at its
manufacturing locations to analyse vast
amount of operational data. RIL envisioned
its smart manufacturing adoption through
the following broad class of activities:
• Deploy / develop smart sensors and
control elements, including edge devices
• No touch, remote operation, paperless
manufacturing and workflow execution
• Advanced predictive and perspective
analytics to predict future performance
and alert equipment failure
The Company promotes and adopts new
training opportunities in the fields of
analytical platforms, computer vision,
machine learning and AI algorithms and
programming languages. RIL strives to
enhance the skill sets of relevant personnel
internally by converting these opportunities
into success. These newly acquired skill
sets, coupled with domain expertise, are
applied in prescribing the solution for
process performance and equipment health
improvement. The Company engages its
partners to have its own manufacturing
data platform so as to facilitate elimination
of data latency and drive quick adoption of
big data analytics. Implementation of this
initiative resulted in efficient application
of new ideas to meet the ever-changing
business requirements. The Operator
Training Simulator (OTS) deployed at
critical plants of RIL is extensively used for
operator competency improvement, to
train for start-up, shutdown and handle
plant emergency and process safety related
scenarios. The 'Learning by Doing' aspect
of OTS has not only improved the operator
confidence for taking charge at the panel,
but also has reduced overall training time.
RIL has also piloted Virtual Reality (VR)-
based technology for training.
RIL’s manufacturing locations also
showcased immense progress in executing
a gamut of projects related to mobility
application, image analytics and
robotics technology. The Company is
also co-developing these solutions in
collaboration with several research
organisations and premier educational
institutes. RIL has already started leveraging
smart manufacturing technologies in
existing practices:
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Q ILLUSTRATION: EMERGING TECHNOLOGIES
Industrial Internet
of Things (IIOT)
Computer
Vision and Machine
Learning
Robotics process
and automation
Smart contract
Situation
Requirement for reliable, fast, accurate technology
Action Taken
Action Taken
Action Taken
Action Taken
RIL has diligently planned and
implemented automation
in its business operations by
Robotics Process Automation
(RPA) technology. Chat bots
have been implemented to
increase vendor engagement
and accurately address vendor
queries on status of orders,
payments and so on.
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.
A machine learning based
computer vision solution
was developed to identify
contamination in rubber
production. The solution
uses video stream from plant
production line, analyses the
video and generates alerts in
real-time. The solution also
minimises the exposure of
employees to a hazardous
environment. This solution
is scalable to all the rubber
producing plants of RIL.
RIL is exploring collaborations
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 its
deep process and operational
experience in the hydrocarbon
business and Jio’s 4G data and
communication platform.
Outcome
Outcome
Outcome
Outcome
Strengthening partnerships
through industry
collaborations
Improved quality and
customer experience, leading
to higher customer retention
reflected in increased sales
Reinforced competitiveness
through unique proposition
This will potentially reduce
the lead time for procurement
and improve security in
transactions
135
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Manufactured Capital and Product Stewardship
1. Deployed machine learning based
solution for prediction of process health
to take corrective/ preventive actions for
any future performance deterioration
2. Deployed solution in manufacturing
using image analytics technologies to
eliminate off-spec rubber production due
to contamination
3. Deployed mobile application in
operations
4. Development of an IIoT device with
real-time edge analytics to assess the
health of rotary equipment and provide
root-cause of health deterioration
5. Use of robots for inspection and cleaning
of inaccessible location like AC ducts,
which improves quality of air and
thereby, the health of people
6. Implementation of new technologies
in rotary/ inspection and corrosion
monitoring for early event detection and
deployment of thickness measurement
and corrosion monitoring for static asset
reliability
7. Real-time assessment of plant
instrumentation, automation assets and
performance insights to improve process
stability and minimise operating cost
RIL has primarily focused on developing a
secured IIoT and analytics based solution
meeting the Company’s Integrated
Risk Management standards. 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 and medium
enterprises (SMEs) in the journey.
Safety at Reliance
136
ELEMENTS OF RIL SECURED CONNECTED SYSTEM
RIL has developed and effectively implemented real-time analytics system known as RIL
Secured Connected System (RILSCS). By virtue of this system, the Company can analyse
the operations on instantaneous basis for predicting future challenges. The elements of RIL
SCS are described in the diagram below:
Sensors
and Systems
Connected
Real-time
Insight into
operations
Learning
through
advanced
analytics
RIL SECURED
CONNECTED
SYSTEM
Secured
DIGITISATION
RIL is committed towards digital inclusion and has set an objective of developing all the
underlying solutions co-hosted within the digital manufacturing platform. It is envisaged
along with innovative digital technologies to drive business objectives and outcomes. With
the help of these platforms, RIL has provided near real-time business insights to its end
users, which allow them to take fast and effective business decisions through a common and
intuitive User Interface (UI). RIL’s digitisation strategy is focused upon two main parameters:
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.
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.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Augmented customer experience
To enhance the customer experience,
RIL is planning to develop a new Supply
Chain Management (SCM) transformation
programme 'Augmented Customer
Experience' (ACE). Objective of this
programme is to enhance customer
experience based on voice of customers
and enable value added services. This
initiative will enable integrated business
planning through advanced analytics,
better supply planning and execution, and
thus lead 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.
A desired outcome of this programme
is to strengthen Customer Relationship
Management (CRM) by enhancing agents
and customer experience through
dashboards and mobile applications.
PRODUCT STEWARDSHIP
Reliance proactively ensures that its
products positively impact the environment
and society at large. The three key
categories of products that the Company
manufactures are – transportation fuels,
polymers and polyester fibres. RIL sets
a uniformly high standard for product
development, which goes beyond
regulatory requirements. Product
stewardship initiatives undertaken in FY
2018-19 are listed below:
REFINING & MARKETING
RIL has focused on debottlenecking,
capacity enhancement, energy
conservation and product quality
improvement to enhance its competitive
strengths. Some efforts include:
• Debottlenecking of Diesel
Hydrodesulphurisation (DHDS) unit to
higher capacity
• Improved diesel recovery with
modifications to vacuum units
Jamnagar Refinery is not only state-of-
the-art in terms of technical capability
but also resilient to natural disasters.
During the Gujarat earthquake of
2001, which was 7.7 on the Richter
scale, Jamnagar refinery did not suffer
any major damage.
Q ILLUSTRATION
Gaining competitive
advantage through liquid
phase isomerisation
Situation
Reduction of productivity in PX4 plant
due to leakage of Packinox Exchanger.
Action Taken
The challenge of enhancing
productivity was resolved through use
of Liquid Phase Isomerisation (LPI)
Technology. It utilises its capacity of
only xylene isomerisation bypassing
of Isomar Reactor with Packinox and
is a breakthrough idea of improving
productivity.
Outcome
LPI technology consumes lesser
energy and thus has lower Capex and
Opex requirements. LPI technology
significantly adds to the Company’s
competitive advantage for PX
production.
PETROCHEMICALS
Polymers
• Reliance is continuously developing its
plasticulture applications, which have
utility in agriculture and dairy industries
in India. During the year, PE grades have
been used for manufacturing of net for
paddy stubble bales.
• Poly Ethylene manufactured by Reliance
is used to develop special sleeves to
protect saplings on hills from wild fire in
Maharashtra.
• A breakthrough was achieved for usage
of impact Co-polymer Polypropylene
(PP) in mud liner of vehicles.
• Reliance is developing 2-dimensional
nanomaterials such as graphene, which
adds to the existing polymer portfolio.
Polyesters
R|Elan™ is RIL’s umbrella brand, which
encompasses a range of new age fabrics.
It is a blend of art and 'smart', with
fabrics that provide enhanced aesthetics,
performance and comfort. Through this,
RIL fulfils the consumer needs, across
apparel segments like active wear, denim,
formal wear and women’s wear.
Composites and Carbon Fibre
Under its Trademark RelX™, Reliance
Composite Solutions successfully
developed the following projects:
•
Developed FTTx Pole for
telecommunication, which is light
weight and cost competitive
Designed and delivered underground
fuel storage tanks for storing petroleum
products as per the latest design,
fabrication, inspection and testing
standards
Started producing interiors and toilet
modules for train coaches
Developed carbon fibre wrap, which
can be used to strengthen depleted
pipelines, buildings, roads and bridges
•
•
•
3D Printing
RIL has developed capabilities to design
and print prototypes as well as end-use
parts for Oil and Gas, Medical, Electronics
and Industrial Tooling sectors. RIL is also
working on developing 3D-printable
materials out of our downstream products
such as PP and PE.
137
LPI at PX plant
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Manufactured Capital and Product Stewardship
Other Brands
Recron® Certified is the largest selling
Pillow Brand in the country. It operates on
B2B2C (Business to Business to Consumer)
model. This enables RIL to reach millions of
consumers across India.
RETAIL
Trends has grown rapidly over the last few
years driven by store expansion and higher
productivity of existing stores, lead by
better merchandise and engaging shopping
experience. In order to serve customers
better and provide them with superior store
experience, Reliance Retail has introduced
new store concepts such as Trends Woman
and Trends Man. These stores have received
strong traction from customers since their
launch, paving way for their expansion.
Reliance Retail has introduced compact
Trends stores across Tier III / Tier IV towns
that offer focused assortment at stronger
value proposition. During the year, 65 small
town Trends stores were rolled out.
DIGITAL SERVICES
•
Under GigaFiber, Jio has built the
product and services to transform every
home to a Smart Home by serving
digital needs of tomorrow’s India today
– including ultra-high-speed internet,
content, home voice services and Home
IoT services among others.
Jio has built the country’s largest all-IP
data network on 4G-LTE technology and
as a mobile video network, provides
VoLTE and is future ready for transition
to 5G and beyond.
MEDIA
•
During FY 2018-19, Network18 launched
MC Pro, a paid app with premium and
ad-free content. Further, MoneyControl
also launched MC Transact during the
year for enabling speedy investments.
VOOT’s product proposition has been
bolstered through making news channel
content available on it. Additionally, the
platform is making rapid strides towards
a pay model.
Viacom18 Motion Pictures announced
its digital content arm–Tipping Point.
•
•
•
The intention was to create short-form
content for Digital (especially for VOOT)
by utilising the strengths of the movie
studio, thereby creating high-value
content in-house, amidst the current
high-competition war for content.
EXPANSION PROJECTS
As the world migrates from fossil fuels
to renewable energy, RIL will further
maximise this Oil to Chemicals conversion
and upgrade all of its fuels to high value
petrochemicals. This up-gradation will be
implemented in a phased manner over the
next decade to meet the rapidly increasing
demand for petrochemicals in India and
the region. The hydrocarbon business is
thus poised for robust value creation and
exciting times ahead.
Refinery off-gas cracker
In January 2018, RIL announced successful
commissioning of the world’s first ever
Refinery Off-Gas Cracker (ROGC) complex of
1.5 MMTA capacity.
•
The ROGC complex uses off-gases from
Jamnagar refineries as feedstock,
helping RIL emerge as one of the most
efficient producers of polymers in the
world.
The complex was built in a record time
with approximately 40% lower capital
cost compared to similar projects
globally.
The unique configuration with
sustainable cost advantage, competitive
project schedule, lower capital
cost and flawless start-up made
the ROGC complex one of the best
executed projects globally, right from
conceptualisation to commissioning.
•
•
•
Trends store at Gadag
138
Petcoke gasification
•
Petcoke gasification project, one of the
largest clean initiatives in the world,
uniquely turned Jamnagar refineries
‘bottom-less’ by converting low-value
petroleum coke into syngas.
One of the most complex projects, it
has integrated 83 process units with
refineries and other downstream units
operating in extreme conditions, with
temperatures ranging from (-)190°C to
(+)1,480°C, and pressure fluctuating from
vacuum to 120 standard atmosphere.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 •
•
Downstream expansions
•
RIL expanded the PX production
capacity significantly, making RIL the
world’s second largest PX producer.
RIL added capacities of PTA, MEG, PFY
and PET, reinforcing itself as the world's
largest integrated polyester player.
Thanks to the new LLDPE and LDPE
plants, RIL can now produce the
entire range of PE grades covering all
end-uses in the Indian market. The
additional capacities of MEG, LLDPE
and LDPE helped absorb the ethylene
produced from ROGC. Similarly,
Propylene from ROGC enhanced output
of Polypropylene (PP) at Jamnagar to
produce high-value co-polymers.
GLOBAL CORPORATE SECURITY
Global Corporate Security (GCS) is a
distinct function of RIL mandated to
secure, safeguard and de-risk India’s
largest private sector company. GCS
officers are engaged round-the-clock for
safeguarding RIL’s people, assets and
operations, ensuring business continuity
at all times and reducing the cost of doing
business. GCS apex leadership comprises
a multidimensional and diverse range
of experts, including veterans from the
military, central police organisations,
paramilitary forces, law enforcement
agencies, intelligence services and other
subject-matter experts from the industry.
GCS operates the Reliance Security and
Risk Management Academy (RSRMA),
a first-of-its-kind training institution in
India, dedicated to producing world-class
security professionals. The academy has
trained more than 900 security officers
thus far. GCS also carried out a capacity-
building exercise to create a favourable
security posture around the campus and
office facilities by de-risking the ecosystem.
Towards this, the security teams conducted
37 sessions on ‘Safety and Security’ for
5,361 school children covering 34 schools
of Mumbai. RIL is also at the forefront
of developing national-level security
doctrines in coordination with academia
and think-tanks.
As part of the next stage of its
intelligence-led and technology-driven
evolution, the Company is implementing
platform-based hi-tech solutions for
analysing risk, designing security
processes and supporting operations
on ground, with minimal impact on
business operations. Digitised process
enhancements, permitting comprehensive
collection, collation and analysis of
actionable information, will support threat
assessments and risk-mapping, enabling
future-ready security solutions for all RIL
stakeholders.
Gasification Unit
Maritime security Drill at Jamnagar
139
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Intellectual Capital and Innovation
Hital R.
Meswani
Ajit
Sapre
Dr. J V Kelkar
Gerard
Denazelle
Suketu
Vakil
Kiran Thomas
Anish Shah
Rui Bastos
RIL’s DNA of organic growth has been
institutionalised through the Reliance Management
System (RMS) across the organisation, which
is a key intellectual capital. Now Reliance is on
a transformational journey where platforms
are being implemented across businesses and
functions, leveraging digital technology capabilities
to enable rapid innovation, organisational agility
and market responsiveness. Additionally, through
Research and Technology, the Company creates
next generation technologies, and has evolved from
buyer and customiser of technology to developer
of technology, across projects, products and
businesses.
RIL continued to invest heavily in areas of research
such as new materials for a cleaner environment
and energy transition and security. This includes
applications of synthetic biology that brings
together the physical, digital and biological
domains to better enable the Fourth Industrial
Revolution.
Reliance has transitioned from buyer of technology
to flagship developer of greener technology – for
all its principal businesses ahead of competition.
There’s significant potential to scale up and patent
Reliance’s proprietary technologies. During the
year, 120 patents have been granted.
The Company’s tacit knowledge base is a significant
resource that the Company taps into and uses
internal crowd sourcing as an enabler
to R&T.
140
MATERIAL TOPICS
OTHER FRAMEWORKS REFERENCED
1. Innovation and Technology
2. Data Privacy and Security
WBCSD
UNITED NATION’S SDGs
PMO’S INITIATIVES SUPPORTED BY THE NITI AAYOG
1. Atal
Innovation
Mission
2. Make
in India
3. National
Policy on
bio-fuels
4. National
environmental
policy
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Q KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
Patent applications filed (Reliance)
164
FY 2018-19
192
FY 2017-18
Number of patents granted (Reliance)
120
FY 2018-19
68
FY 2017-18
Over 4,000 customisations of plant’s
manufacturing processes
Reliance Jio is future ready for
technologies: 5G and beyond
Product Stewardship across
all segments
*Total Expenditure incurred on
R&D (` in crore)
2,377
FY 2018-19
1,824
FY 2017-18
Researchers/scientists/
technologists/engineers
900+
FY 2018-19
Headquarters R&D Centre with total area
1,20,000 sq. ft.
FY 2018-19
Collaborations with global universities for R&D
Q KEY 10 YEAR HIGHLIGHTS
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.
Future ready for all Reliance Businesses with
next-gen technologies:
• R&M: Euro VI capable refinery
• Petrochemical: 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
RIL’s state-
of-the-art
Navi Mumbai
R&D facility
became fully
functional.
RIL developed
process to
generate ‘Green
Bio Crude’ from
algae.
Reliance
Jio filed 54
patents in a
year.
RIL developed
additives
for in-house
utilisation in
cracker coking
passivation.
2,400
2,000
1,600
1,200
800
400
0
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2,400
2,000
1,600
1,200
800
400
0
141
40,000+
saplings
planted at
Kakinada
Revenue (` in crore) Capital (` in crore)2076547386311,2861382033143353804084986281,0918107225938551,026798Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Intellectual Capital and Innovation
RESEARCH AND TECHNOLOGY (R&T)
R&D MEGATRENDS
RIL fosters a robust research and
innovation culture to address emerging
challenges and demands of its diverse
customer base. 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.
Across the spectrum, there is an accelerated
use of digital technologies. The table below
elaborates more on Reliance’s transition
from a Buyer to a Developer, and shows the
evolution of the Company as it capitalises
on megatrends as an opportunity.
R&T MISSION
RIL shall develop innovative products,
processes and catalysts to increase and
sustain the profitability and growth of
Reliance in a compliant, safe and reliable
manner. To achieve this mission, RIL
has transitioned from a smart buyer
of technology to a fast customiser of
technology and a flagship developer
through technology largely developed
in-house that creates significant value.
R&T enables the innovation based growth
agenda for Reliance.
Research and Technology plays a vital
role in the growth agenda of Reliance by
focusing on:
i) New products, processes and catalyst
development to support existing
business and create breakthrough
technologies for new businesses
ii) Advanced troubleshooting
iii) Support to capital projects, and
profit and reliability improvements in
manufacturing plants
142
Products
Project
Reinventing business
BUYER
Nanomaterials
IPCL refinery
Non-conventional sale
CUSTOM-
ISER
DEVELOPER
Plasticulture,
Poly Ethylene Pouch,
Project Eve
Algae to Oil
CDM
Oil to
Chemicals
Fibre to Home
Digital ecosystem
RESEARCH AND TECHNOLOGY (R&T)
Molecule
Catalysts
Novel
Reactors
Processes
Markets
Products
R&T
Eco PVC
Catalytic
gasification;
Ionic liquid
HDS and
HDN;
DMC*
Coal Bed
Methane
Algae
to Oil;
Biodiesel
Composites;
Relfarm S;
Bio compostable
polymer
Reliance R&T: Fundamentals to value creation
R&T ENABLERS
Process and molecular modelling, advanced analytical, scale-up, R&T project management
R&T
ENABLERS
Capability to support existing businesses
Capabilities for new businesses
Chemical synthesis
Reactor design
Process development
Catalysts and adsorbents
Polymer science
Synthetic biology
Genomics
Bioinformatics
Nano-technology
Alternate energy
New materials
Green chemistry
Digital ecosystem
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19
ORGANISATIONAL STRUCTURE
The R&T function at Reliance has two
distinct themes:
i) Breakthrough R&T for existing and new
businesses ahead of megatrends
ii) Near-term R&T to innovate processes
and products for competitive advantage
At Reliance, R&T is governed and operated
by a well-defined set of teams: strategic
teams, leadership teams and functional
excellence teams.
Reliance R&T is future ready
Reliance R&T has adopted an approach
which is an amalgamation of physical,
digital and biological innovations, which
enables the Company to bring forth the
next gen industrial revolution.
FOCUS AREAS OF R&T
R&T at RIL has end-to-end presence in
value chain from feedstock to value-added
products. RIL has grown to be one of the
largest and most successful refining and
petrochemical companies in the world.
It 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, with enhancement of
customer experience as a pivotal focus.
Some of the key initiatives consistent with
the above trends are mentioned below:
THEME: CLEAN ENVIRONMENT
Biodegradable Polymers as packaging
material
Globally, plastic pollution is an
environmental concern. 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
impacts.
Eco-smart PVC, which does not
deteriorate, 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 the
product.
THEME: PRODUCT INNOVATION
Specialty PP Products and Catalyst
Development – for high performance
materials
The Polymer team has developed high melt
flow PP products and Ultrahigh Molecular
weight PP using advanced generation
catalyst system having better hydrogen
response and productivity. This strategic
high performance material development
provides an opportunity to move from
commodity polyolefin – PP to specialty
polyolefin catering to niche applications
such as high performance PP products for
automobile application.
Metallocene LLDPE products and
catalyst technology – Indigenisation of
catalyst
Global Metallocene LLDPE (mLLDPE)
market is in the range of 5-6 MMTPA for
different applications and the overall
growth rates are expected to reach 7%
per year. RIL has developed metallocene
catalyst technology to produce mLLDPE
in gas phase process for packaging film
applications. The produced mLLDPE
resin has chemical, morphological and
molecular weight characteristics at par with
target characteristics. This development
has helped reduce dependence on external
catalyst suppliers.
Highly Reactive Polyisobutylene
(HR-PIB) Process and Product
Development – additive for increased
fuel efficiency
HR-PIBs carry a terminal vinylidene
functionality. Due to this characteristic,
they have found applications as
intermediates in the preparation of
additives for fuels and lubricants as
well as other functional modifications.
A new catalyst and process have been
developed for HR-PIB products with desired
functionality.
High Performance Elastomeric
Products and Applications – self
healing material
New elastomeric materials have been
developed based on Endo-rich bromobutyl
rubber. The elastomeric ionomers have
self-healing characteristics and potential
applications for high performance
pharmaceutical stopper, high impact
polyolefin materials for automobile and
elastomeric fibres.
Carbon Fibers – light weighting of
materials
Electric vehicles demand light weighting of
automotive body parts without sacrificing
strength. Carbon fiber composites have the
potential to satisfy this need. However, they
need to be developed at a cost-effective
price point. Towards this goal, RIL R&T is
developing technologies for carbon fibers
using various raw materials and different
process approaches.
Synthetic Biology – physical, digital
and biological sciences to create value
added products
Multiple cross-discipline researches for
functional food, feed, nutrition, unique
biomaterials and AI driven genomics and
photosynthesis studies are opening up
a plethora of opportunities. Synthetic
biology, with all other allied technology
development, serves as one of the most
important pillars of the 4th industrial
revolution as an amalgamation of
physical, digital and biological platforms.
Multiple and diverse disciplines, viz.
molecular biology, genetic engineering,
bioinformatics, systems biology,
photosynthesis, 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 artificially synthesised DNA and
modularising them in an automation
pipeline to fast-track proof-of-concept
validation, process standardisation and
rapid commercialisation. Targeted genome
editing using CRISPR has evolved as a
143
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Intellectual Capital and Innovation
robust technology, which has empowered
synthetic biology with throughput,
precision, accuracy and time-bound
delivery of projects to products.
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. RIL
has developed knowledge in the area of
algae photosynthesis and translated the
knowledge into modern agriculture crop
productivity enhancement interventions
by connecting photosynthesis with digital
technology capability of Jio. This is
helping to leapfrog into an era of precision
agriculture, which will have a disruptive
impact on Indian agriculture and would
have the potential to address food security.
RIL is committed to leverage the next
generation biology advancement to create
significant societal impact and make life
healthier and more comfortable.
THEME: ENERGY TRANSITION AND
SECURITY
Fuel Cell for–alternate renewable
energy
The first fully indigenous prototype of a
high temperature-polymer electrolyte
membrane (HT-PEM) fuel cell system
comprising fuel cell stack, methanol
reformer, balance of plant and control
system has been built and lab testing is
underway followed by testing on simulated
RIL-Jio towers.
Algae to Oil Downstream – converting
feedstock to renewable crude
Reliance Catalytic Hydrothermal
Liquefaction (RCAT-HTL) is a feed flexible
technology that converts any biomass and
organic waste into ‘drop-in’ energy dense
renewable crude that can be processed
in the existing refining infrastructure to
produce transportation fuels. Various
feedstock such as algae, food waste,
industrial sludge, lignin waste, distillery
waste and palm oil mill waste have been
tested with RCAT-HTL. Engine testing using
RCAT-HTL derived fuels shows promising
results. RIL’s RCAT-HTL technology won the
Golden Peacock Eco-Innovation Award and
Global Clean Energy Award in 2018.
144
Coal Bed Methane (CBM) – converting
unminable coal to methane
The unminable coal, if not redeemed for its
value in the form of methane production,
would be a waste of natural resources. RIL’s
BioCBM process is targeted at converting
unminable coal to methane, a fuel that can
improve the country’s energy security.
Speciality fuel development – for
India’s space programmes
R&T is contributing its bit to the nation’s
space research programme with in-house
technology development for ISROSENE (a
speciality fuel). Molex Raffinate stream from
one of our plants is being suitably upgraded
using two alternate technologies to meet
the stringent fuel specifications set by ISRO.
Lab/Pilot scale optimisation is currently
underway and scale up to a commercial
unit is planned in the next phase.
THEME: HEALTH SAFETY AND
ENVIRONMENT (HSE)
Ionic liquids replacing Hydrofluoric
Acid – replacing hazardous catalyst
RIL developed an Ionic Liquid (IL)-based
technology to replace the Hydrofluoric Acid
(HF) catalyst for manufacturing of Linear
Alkyl Benzenes (LAB). HF is potentially
hazardous and will be replaced with the
non-hazardous Ionic Liquid. LAB produced
form the pilot plant has been used for
market seeding. The customer feedback
is very promising. The Company’s two
commercial LAB manufacturing units in
Patalganga and Vadodara will be converted
from licensed HF-based technology to in
house IL-based technology. RIL has several
patents for this technology. This process
significantly reduces the risk of health and
environmental hazards of operation.
REFINING AND PETROCHEMICALS
Catalytic gasification – converting
waste to value
RIL has developed a catalyst that can gasify
feed like petcoke at temperatures below
750⁰C. The catalytic process can be
used to convert high-ash Indian coal
to high-value syngas. The process is
demonstrated in both dual bed and single
bed in pilot scale. The reaction mechanism
of catalytic gasification and subsequent
results are published in the ‘Energy & Fuels’
journal, by the American Chemical Society.
Work is underway to demonstrate the
technology at larger scale.
Multizone Catalytic Cracking (MCC) –
producing high value petrochemicals
RIL has developed a new Multizone
Catalytic Cracking (MCC) process, which
converts a wide range of feedstock to
high value propylene and ethylene in a
single riser. The MCC process is a platform
technology for producing high value
petrochemicals in the refinery. MCC can be
designed and operated in different modes
to manufacture olefins and gasoline.
Low Cost Anti-Coking & Sulfiding
Additive – import substitution of
specialty additive
RIL has developed and started commercial
production of low cost anti-coking and
sulfiding additive from refinery waste.
This is a cost effective alternate of imported
commercial additive Di-methyl Di-sulphide
(DMDS) for steam cracker and hydro treater
applications. This indigenous product
is being utilised in the world’s largest
refinery off gas cracker (ROGC) unit of RIL
Jamnagar manufacturing complex. RIL
has received several prestigious awards,
e.g., Golden Peacock (innovative product),
FICCI (innovative process) and Centre for
High Technology, Govt. of India (best R&D
development) for this patented technology.
Slag waste to chemicals – green
process to convert waste to metals
Hydro process requires large quantity
of acid or alkali for leaching or the
pyro process, which involves very high
temperature. i.e., above 1,700⁰C. RIL has
developed a low-cost low temperature
hybrid green process to extract vanadium
from gasifier slag. The green process is
demonstrated in pilot scale, which is being
demonstrated to scale.
Direct conversion of CO2 to Dimethyl
Carbonate (DMC) – creating value out
of CO2
RIL has developed a mixed oxide stable
catalyst to directly convert methanol and
CO2 to a high value product, viz. DMC.
Until now, DMC production is being done
through non-green phosgene process,
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 which inherently results in high cost of
production. Thus, various applications
of DMC, including its use as additive for
gasoline, gets ruled out. DMC is also the
gateway for making polycarbonate and
thus is 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. 0.1 kg Catalyst was prepared
for testing its activity. The result was an
improved methanol conversion to 65-70 %
with DMC yield of about 50%. A strategy for
scaling up is being explored.
Agronomy – Biojet fuel for nation
using Jatropha
In India, bio-fuels have taken a significantly
positive turn in the last couple of years.
Government of India (GoI) is aggressively
promoting indigenous production and use
of biofuels. Consistent with this biofuel
ambition, the Indian Air Force (IAF) is also
aggressively pursuing introduction of
bio-jet for its fleet. IAF’s goal is to attain
bio-jet blending level of 10% in its ATF
requirement. At the most recent Republic
Day fly-past, IAF flew an AN-32 transporter
jet using bio-jet/ATF blend. The bio-jet used
for this flight was produced using Jatropha
oil as feedstock.
RIL’s Jatropha hybrid development
programme has succeeded in developing
high yielding Jatropha hybrids. Our
hybrid productivity is the best globally.
After successive generation of hybrid
developments, our hybrids are stably
yielding >3 mt/ha-year of seed yield under
rain-fed conditions in poor quality soil.
Availability of Jatropha seeds in significant
quantity will mitigate the major challenge
that biofuel industry is facing, i.e., lack of
availability of quality feedstock.
RIL has developed a technology, which is
ready for commercialisation.
Polymer composites for lightweight
vehicle and body armour
RIL innovated and developed a new
disentangled high molecular weight
polyethylene (DPE). High strength
tapes and fibre have been used to make
composite materials suited to produce
body and vehicle armour. The process
inclusive of polymerisation, preparation
of oriented tapes/fibres and composites
is scaled up to pilot and armour products
made from tapes. This process has been
tested both for body and vehicle armour
applications. RIL has patented this cutting-
edge technology.
Advanced Material
• 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.
• RelWoodTM is another example of
advanced material that looks and feels
like high quality wood but has superior
properties. It is a durable, water-resistant,
fire retardant and termite proof product
that can replace wood across all
applications.
E&P
Reliance is engaged in R&T efforts to
increase the recovery from CBM fields
with Bio-CBM technology, which used
microbe injection to produce in-situ
methane where either coals are devoid of
methane or conventional CBM extraction is
uneconomical.
Retail
Reliance Retail entered into a partnership
with Disney to develop and market
co-branded SKUs across various categories
such as food, fashion, toys and more.
Digital Services
Jio continues to innovate across the
digital value chain through R&D in
cutting-edge technologies such as video
bots, blockchain, advanced features like
Software Defined Networking (SDN),
Network Function Virtualisation (NFV) and
Evolved Multimedia Broadcast Multicast
Services (eMBMS). Till date, Reliance Jio
has filed 100 patents out of which 18 have
been granted. In FY 2018-19 alone, the
Company filed for 35 patents and was
granted 12.
R&T PRODUCT STEWARDSHIP
Refining
The focus areas for R&T in refining are
around process development and efficiency
through processes like gasification,
syngas and CO2 value creation, oil to
chemical, value addition through refinery
by-products, etc. Even advanced analytical
models along with visualisation are being
developed and delivered to business users
in a phase-wise manner, thus helping to
make informed decisions in the refining
business.
Petrochemical
Polymers
• Reliance has manufactured cast film
polypropylene to maintain high
shelf-life of meat and other food
products containing high fatty acids.
• Reliance has developed polyethylene
bubble film for greenhouse applications,
which provides better technical
performance and longer shelf life
of nearly 10 years. Usage of the film
will help farmers to reduce recurring
expenses with increased performance of
greenhouse structures.
• Reliance has developed high melt flow
index (MFI) polyethylene grades for
application of stretch film.
• Reliance has developed a polyethylene
pouch, which is 100% recyclable and
suitable for consumer packaging
applications.
Advance Process Control (APC) and Real
Time Optimisation (RTO)
• APC and RTO applications facilitate
minimising variations, increasing
throughput, optimising yields,
minimising utility consumption,
improved stability, reliability and
profitability of process units.
145
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Intellectual Capital and Innovation
R&D EXPENDITURE
CAPITAL
REVENUE
Total
R&T ENABLERS
1. Infrastructure
FY 2018-19
FY 2017-18
FY 2016-17
FY 2015-16
1,286
1,091
2,377
1,026
798
1,824
593
855
1,448
631
628
1,259
(` in crore)
FY 2014-15
722
498
1,220
All the R&D centres are well equipped with best-in-class infrastructure for conducting high-end inter-disciplinary research.
R&D Centres
NAVI MUMBAI Catalysis, chemistry, process engineering, modelling, simulation, material science, synthetic biology, biotechnology, downstream
Focus Areas
HAZIRA
VADODARA
PATALGANGA
JAMNAGAR
GAGVA
SMALKOT
NARODA
polymer processing, product applications and advanced analytical
Polypropylene catalysis and pilot scale testing
Catalysts, adsorbents, organic chemistry, process development, applied biology, environmental science, polymer applications and
technologies, elastomer application and technologies
Polyester materials, processes, products and applications
Crude characterisation, process research, and pilot scale facilities for supporting refining operations and renewable energy
technology development
Pilot plants in over 40 acres of land to develop algae on sea water and convert biomass to biofuel
Biofuels Farm
Performance properties for apparel fabrics and auto textiles
2. 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), 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.
3. R&D Personnel
RIL runs initiatives and campus recruitment
drives across universities and colleges to
attract fresh talent and the next generation
of engineers and scientists. To support 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 institutes
• 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 Institutes
• 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 and FANE.
4. Intellectual Property
At RIL, continuous R&T efforts have
resulted in the creation of diverse
technological solutions and corresponding
patent portfolio spread across various
geographies. A robust internal Intellectual
Property (IP) governance framework
ensures these patents are in close
alignment with the organisation’s business
objectives. In FY 2018-19, a total of 108
patents were granted to RIL.
For the last few years, Reliance has been
consistently featuring among the ‘Asia IP
Elite’, a select club of companies from the
Asia Pacific region having best IP systems
and processes with emphasis on integrating
intellectual property with commercial
decision-making. In the year 2018-19,
Reliance was adjudged winner of the
India Innovation Awards in the Corporate
category organised by Clarivate Analytics.
5. Organised Big Data and Digitisation
RIL 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:
146
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 a) New Product Development and
Introduction (NPDI)
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 and non-SAP modules, viz. FICO,
P&C, HCM, IMPS, ELN and others.
b)
Intellectual Property Management
System (IPMS)
R&D has implemented an enterprise-
wide Intellectual Property Portfolio
Management application for
centralisation of patent filing. It enables
focused patent filing and helps in
having a centralised repository for
various stakeholders.
c) Electronic Laboratory Notebook (ELN)
R&D has implemented best-in-class
ELN which is seamlessly integrated
with the Laboratory Information
Management System (LIMS). ELN is a
procedure-driven 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 and directly capture
results from interfaced analytical
instruments and barcode systems for
sample lifecycle management.
CBM Well site
DIGITAL PLATFORMS
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 enables 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 platform’s
strategy includes the rollout of 4 key
elements:
1) Software as a service (SaaS) based
platforms–Cloud based hosting
environments for storing and accessing
loosely connected services which deliver
business solutions and services
2) 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)
3) Analytics and Data Science engines–
Computing capabilities used for
converting data into meaningful insights
through data visualisation, machine
learning and artificial intelligence
4) 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-centred 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.
147
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Sustainable Growth At Reliance
The Integrated Approach: Financial Capital and Credit Rating
Reliance is always focused on
improving shareholder returns
by maintaining an optimal capital
structure. The Company has
significantly enhanced its operational
performance by establishing prudent
risk management framework.
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.
MATERIAL ISSUES
Economic Performance
MATERIAL TOPICS
Economic Performance
UNITED NATION’S SDGs
148
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Q KEY PERFORMANCE INDICATORS
INPUTS
Capital Expenditure (` in crore)
1,32,445
FY 2018-19
79,253
FY 2017-18
OUTPUTS
Revenue (` in crore)
6,22,809
FY 2018-19
PBDIT (` in crore)
92,656
FY 2018-19
Net Profit (` in crore)
39,588
FY 2018-19
Debt-Equity Ratio
0.74
FY 2018-19
4,30,731
FY 2017-18
73,097*
FY 2017-18
34,988*
FY 2017-18
0.75
FY 2017-18
Return on Capital
Employed (%) (Standalone)
24.9
FY 2018-19
28.7
FY 2017-18
OUTCOMES
Market Capitalisation (` in crore)
8,63,996
FY 2018-19
5,59,223
FY 2017-18
CAGR of Market Capitalisation since IPO (%)
31.9
FY 2018-19
31.4
FY 2017-18
Domestic credit rating
‘CRISIL AAA/Stable’ from CRISIL and
‘IND AAA/Stable’ from India Ratings
Investment grade rating for its
international debt
(cid:27)(cid:25)(cid:31)(cid:31)(cid:31)(cid:31)
Baa2 from Moody’s and BBB+ from S&P
Q KEY HIGHLIGHTS
24,503
19,294
19,724
20,879
22,493
23,566
25,171
29,901
34,988*
39,588
650000
520000
390000
260000
130000
0
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
*Excludes exceptional item of `1,087 crore representing profit from divestment of stake in Gulf Africa Petroleum Corporation
650000
520000
390000
260000
130000
0
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
(cid:25)(cid:28)(cid:31)(cid:31)(cid:31)(cid:31)
(cid:29)(cid:26)(cid:31)(cid:31)(cid:31)(cid:31)
(cid:28)(cid:27)(cid:31)(cid:31)(cid:31)(cid:31)
(cid:30)(cid:29)(cid:31)(cid:31)(cid:31)(cid:31)
(cid:31)
(cid:27)(cid:25)(cid:31)(cid:31)(cid:31)(cid:31)
(cid:25)(cid:28)(cid:31)(cid:31)(cid:31)(cid:31)
(cid:29)(cid:26)(cid:31)(cid:31)(cid:31)(cid:31)
(cid:28)(cid:27)(cid:31)(cid:31)(cid:31)(cid:31)
(cid:30)(cid:29)(cid:31)(cid:31)(cid:31)(cid:31)
(cid:31)
149
3,30,180 4,30,731 2,93,298 3,88,494 4,46,339 3,68,571 4,08,392 2,76,372 2,11,727 1,98,670 1,82,030 1,69,445 2,18,482 2,31,556 2,58,5113,24,6446,22,809 2,89,798 Revenue (` in crore) Net Worth (` in crore) Net Profit (` in crore) 1,54,093 1,41,003Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
The Integrated Approach: Social and Relationship Capital
P.M.S.
Prasad
B Srinivasan
Jagannatha
Kumar
RIL, through its businesses, as
well as through its community
initiatives aims to progressively
create more opportunities, thus
creating enhanced societal value
– directly and indirectly for the
wider society. Through various
initiatives such as Jio-GenNext
and strategic investments, RIL is
enabling platforms for startups to
proliferate. This has helped create
an environment which supports
exponential growth of startups.
There has been considerable focus
on enhancing customer centricity.
Customer-centric solutions for
various products and services are
helping the Company garner an
extended outreach. This is achieved
through a two-way approach
including a wide network of brick and
mortar stores, while simultaneously
leveraging digital platform based
offerings which are serviced by
applications supported by Digital
Services.
Social innovation is an important tool
which the Company utilises through
which its products and services
ensure sustainable and inclusive
growth. The Company’s nation-wide
outreach ensures that economic
MATERIAL ISSUES
prosperity is taken to the doorsteps
Community Development
of the farthest corners, ensuring
abundance for all.
Customer Satisfaction
Supply chain management
The Company will continue to work
with every strata of the economy
to benefit the society, industry and
ultimately, the nation.
150
MATERIAL TOPICS
OTHER FRAMEWORKS REFERENCED
1. Community Development
2. Customer Satisfaction
3. Supply chain management
UNITED NATION’S SDGs
IPIECA, UNGC, NVG-SEE, NGRBC, WBCSD, UNGP,
SROI, Social and Human Capital Protocol
PMO’S INITIATIVES SUPPORTED BY THE NITI AAYOG
1. Support to training
and employment
programme (STEP)
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Q KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
*Reinvested in the Group to maintain and
develop operations (` in crore)
41,869
FY 2018-19
39,639
FY 2017-18
Total villages impacted through Reliance
Foundation
18,000+
FY 2018-19
13,500+
FY 2017-18
*Providers of Debt (` in crore)
12,373
FY 2018-19
7,958
FY 2017-18
Urban locations
200+
FY 2018-19
100+
FY 2017-18
Strong relationship with all our stakeholders
Open and timely communication
with suppliers and contractors
Community outreach of Reliance
Foundation is more than 26 million
Spent on indigenous suppliers (` in crore)
18,566
FY 2018-19
14,070
FY 2017-18
Total number of Jio subscribers (In million)
306.7
FY 2018-19
186.6
FY 2017-18
Developmental initiatives aimed at
community upliftment
(cid:23)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:25)(cid:29)(cid:24)(cid:31)(cid:31)
(cid:28)(cid:29)(cid:27)(cid:31)(cid:31)
(cid:27)(cid:29)(cid:26)(cid:31)(cid:31)
(cid:30)(cid:29)(cid:28)(cid:31)(cid:31)
(cid:31)
(cid:23)(cid:29)(cid:31)(cid:31)(cid:31)
(cid:25)(cid:29)(cid:24)(cid:31)(cid:31)
(cid:28)(cid:29)(cid:27)(cid:31)(cid:31)
(cid:27)(cid:29)(cid:26)(cid:31)(cid:31)
(cid:30)(cid:29)(cid:28)(cid:31)(cid:31)
(cid:31)
151
*Providers of Equity Capital (` in crore)
3,852
FY 2018-19
3,553
FY 2017-18
Total value added (` in crore)
2,18,163
FY 2018-19
1,68,109
FY 2017-18
CSR Expenditure (` in crore)
904
771
FY 2017-18
FY 2018-19
*Contribution to National Exchequer (` in crore)
67,589
FY 2018-19
56,997
FY 2017-18
Total no. of startups supported - 26
*Standalone
Customer engagement metrics continue
to increase – 10.9GB/ user/ month and 823
minutes of VOLTE voice/ user/ month
Q KEY HIGLIGHTS - RIL STANDALONE
RIL's contribution to India's GDP: 3.3%
70,000
56,000
42,000
28,000
14,000
0
70,000
56,000
42,000
28,000
14,000
0
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
51,39956,99743,11733,32231,37428,19728,95028,71917,9723,3703,3542,8623,6864,2604,4345,83467,5894,7402,6242,350 Contribution to National Exchequer (` in crore) Employee Benefits (` in crore)Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
Social and Relationship Capital
STAKEHOLDER ENGAGEMENT
Stakeholder's views, concerns and key expectations have been elemental in calibrating RIL’s business strategy. The Company maintains an
open and constructive dialogue with all its key stakeholders, namely, Investors and Shareholders, Employees, Customers, Suppliers, Trade
unions, Government and Regulatory authorities, Local communities and NGOs.
Internal and external stakeholders are mapped based on the analysis of topics which have the potential or actual impacts on the
Company’s activities. RIL believes that engaging with stakeholders in a transparent manner helps in understanding their societal needs
and expectations, leading to sustainable decision making and enhanced stakeholder value creation. In this regard, the first step is to
identify the key priorities of the Company’s most pertinent stakeholders. For further details on the process, please refer to the RIL’s
sustainability report at www.ril.com.
Stakeholder category
Functions
Corresponding mode(s) of engagement
Frequency of engagement
Business Teams: R&M,
Petrochemicals, Exploration and
Production
Manufacturing division CSR Teams
& Reliance Foundation
Human Resources
Procurement
Industry interactions
Meetings and annual report
Meetings, surveys and web portals
Annually, Monthly, Need based
Meetings, newsletters, surveys and trainings Monthly, Need based
Industrial Relations
Manufacturing division CSR Teams
and Reliance Foundation
Investor Relations
Visits and camps
Visits and telephonic discussions
Visits and telephonic discussions
Secretarial and Legal
Industry interactions
Annually, Quarterly, Monthly, Need based
Real time, on-Command, Need based,
Annually, Quarterly, Need based
Daily
Annually, Need based
Annually, Half-yearly, Monthly, Need
based
Annually, Need based
Customers
Local communities
Employees
Suppliers
Trade unions
NGOs
Investors and
shareholders
Government and
regulatory authorities
JIOGENNEXT: A UNIQUE STARTUP
ECOSYSTEM
JioGenNext has quickly established itself as
one of the leading corporate accelerators in
India since its inception in September 2014.
Over the years, it has played a pivotal role
in catalysing the entrepreneurial ecosystem
by assisting numerous early-stage
technology startups to achieve exponential
growth through mentorship, industry
connect and strategic partnerships.
JioGenNext supports startups on various
areas of business such as stakeholder
development, product road map,
go-to-market strategy, customer acquisition
and engagement, talent hiring, pitching
and fund raising. Under the guidance of
the RIL leadership, it became the preferred
platform for exceptional founders to launch
their startup in the Jio ecosystem.
While Talent, Technology and Trust remain
the three key pillars of JioGenNext, it is
now incorporating a new framework of
ASSURED, which stands for Affordability,
Scalability, Sustainability, Universal, Rapid,
Excellence and Distinctiveness. ASSURED
is a tool or a framework given to every
startup in the cohort. As they check off on
each parameter, the startup’s success gets
ASSURED and they tackle every possible
risk that could lead to their potential
downfall.
Each parameter when observed closely will
ensure that a startup grows sustainably in
the ecosystem while also ensuring that it
meets the ultimate objective of a Digital
India roadmap laid out by the Chairman.
Q KEY METRICS
Applications from
startups and aspiring
entrepreneurs
8,000+
Startups selected
106+
152
Sectorial Break-up of selected startups
7 AgriTech 2 Drone
10 Digital Consumer Services
12 EdTech 8 FinTech
17 Enterprise Solutions
8 HealthTech and Fitness
9 IoT 3 Logistics
4 Network
10 Media and Entertainment
12 Retail 4 Social Media
Funding raised
US$300mn 35+
Engagements with RIL
Cohorts
9
Corporate Partners
24
Mentors and Business Leaders
70
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Jio-GenNext enables inclusive innovations
to meet the needs of everyone. One of
the challenges Digital Services aims to
overcome is the poor and inadequate
educational infrastructure by delivering
high-quality education and skill trainings
to schools, colleges and universities across
the country through digital platforms.
Once this is done, India will have one
of the most digitally enabled education
systems in the world. This has been the
guiding principle behind the numerous
EdTech startups. These entrepreneurs are
providing unique educational solutions to
an array of learners from different walks of
life. Some of them are as below:
• Avaz (FreeSpeech) is the perfect app
for anyone who is learning the English
language, especially for the ones with
special needs, such as autism, dyslexia
and hearing impairments . It is also
useful for anyone who is trying to make
sense of English grammar.
• Guvi’s mission is to make technical
education available to all in their native
languages. Guvi offers technical video
courses like Android, Python, Java,
C, C++, Machine Learning, Big Data,
MongoDB in vernacular languages, which
are created by working professionals .
These courses are available in various
native languages like Tamil, Telugu,
Hindi, Kannada, Bengali, etc.
• MadGuy Labs offers mobile-based exam
test preparation services for government
job aspirants in vernacular languages
such as Kannada, Telugu, Marathi and
Hindi, apart from English.
• Plowns is a platform for parents to store
and share all the amazing things created by
children like paintings, clay models, etc.
• Utter has built the world’s first mobile
platform that enables English and
Workplace Skills training for fresher’s
and digital blue-collar workers. Powered
by multilingual chatbots and expert
tutoring, the platform has over 2 million
learners so far.
These are few of the outstanding startups
that were part of JioGenNext – Summer
2018 programme. Moving away from its
sector-agnostic approach, JioGenNext
launched thematic cohorts in 2018 with
platform focus to go inch-wide and mile-deep in terms of startup engagement. JioGenNext
conducted two Jio-centric market access days to showcase curated list of startups;
‘Cultivate’, for exceptional AgriTech startups that are transforming the food & agriculture
value chain in India using digital technologies and ‘Jio Access’, for innovative Indian startups
in the AI Voice and Vision space.
The other notable startup alumni included the following:
•
•
•
•
•
•
•
Akasa Labs offer solutions in the areas of contracting, payments, traceability and
tokenization for organisations with complex supply-chain networks, eventually creating
value for end users.
COSGrid Networks provide Software Defined Wide Area Network (SD-WAN) solutions
that enable nimble operations for next generation IoT enabled enterprises.
DataCultr Data Streaming platform enables enterprises to connect and control their data
and devices in real-time, helping them take their IoT solutions quicker to market.
Fabulyst leverages Computer Vision, AI and NLP to create virtual personal stylist for
fashion commerce.
LeanAgri aims to increase incomes of farmers by increasing farm yields through
systematic implementation of scientific techniques, providing essential resources and
regular monitoring.
Signzy currently offers a digital on-boarding solution for banks, NBFCs and other
financial institutions in adherence to the regulatory compliance.
BigHaat is agri inputs marketplace platform providing a wide choice of quality inputs to
farmers at their doorstep.
• Kritsnam is in the field of IoT with focus on water resources management.
• Proximal Soilsens Technologies brings affordable technologies for precision farming.
•
FRS Labs is a technology company specialising in customer on-boarding (KYC),
authentication and fraud prevention solutions for businesses.
PiOctave creates video enabled interactive security smart devices and solutions.
Slang is a Voice to Action platform, which can be used to quickly add a multi-lingual
voice interface to any mobile app.
•
•
Q ILLUSTRATION
Artificial Intelligence for grading and quality monitoring
of Agri commodity
Lack of transparency and standardisation of agri commodity poses a threat to farmers’
income and quality control, and may lead to wastage of produce
Situation
Action Taken
To overcome this issue, Intello labs leveraged artificial intelligence (AI) to build a
platform for image-based quality grading of vegetables. Intello’s AI uses a photo of
the commodity sample to generate instantaneous quality metrics. Upon successful
demonstration of the solution, the same was implemented at Reliance Fresh stores
where the app helped the store managers check the quality of food produce
Outcome
The app has helped the stores ensure better quality of produce being sold to the
customers at the right price, which in turn ensures a fair price for farmers as well.
This has also helped the stores reduce the quantity of dumped vegetables
by almost a third.
153
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable Growth At Reliance
Social and Relationship Capital
RESPONSIBILITY TOWARDS
SUPPLIERS
Suppliers are an integral part of the RIL’s
business performance. They are the key
drivers for development, manufacturing
and reliability of products, helping
the Company meet evolving customer
expectations. The Company’s supplier
base includes top performing engineering/
supervision companies, construction
companies, installation and commissioning
service providers, joint ventures and
consortia. Most of them have their own
sustainability programmes and disclose
their sustainability initiatives publicly.
In order to strengthen its relationship
with suppliers, RIL has a board approved
Supplier Code of Conduct and takes a
formal acceptance from them for abiding
by this Code of Conduct during the
vendor registration process. It reflects
RIL’s belief in its suppliers to achieve and
adhere to its core values, and comply
with labour, human rights, health and
safety, environmental protection, business
integrity and confidentiality laws and
standards. Consequently, Reliance
conducts a comprehensive sustainability
assessment and rigorous screening
process for registration and evaluation of
all suppliers. The procurement team also
conducts regular surveillance audits at
suppliers’ sites to assess performance.
Supporting local economy has always
been one the focus areas for RIL. The
Company is continuously exploring the
potential for development of suppliers
hailing from socially and economically
backward communities. The Company
has procured goods and services (non-
crude/non feedstock) worth over `18,566
crore from indigenous suppliers. As the
Company continues to grow its operations,
it encourages suppliers to indigenise and
expand their capabilities and increase their
economic value.
RIL regularly engages with 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, thus expanding
154
its direct and indirect economic impacts.
Through sustained investment in mega
projects and operations, RIL has developed
India’s chemicals and engineering supplier
base and majority of the suppliers and
contractors are based in India.
SUSTAINABLE SOURCING
The five focus areas of RIL’s sustainable
sourcing strategy are aimed at social
progress, economic development and
mitigation of environmental impacts.
The focus areas are:
• Energy management
• Environmental responsibility
• Product stewardship
• Occupational health and safety
• Social institution building
RIL’s sustainable sourcing ethos
focuses on nine key parameters:
• Green packaging
• Environmental 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)
All of RIL’s suppliers and contractors
operate in compliance to applicable laws
and regulations, and labour laws.
In order to effectively manage activities like
manufacturing, distribution and the use of
chemicals in the products, RIL has adopted
RC-14001, an international environmental
management system. The Company has
sourced REACH (Registration, Evaluation,
Authorisation and Restriction of Chemicals)
compliant materials for improving human
health impacts and the protection of
environment. As part of this, even Tier 1
suppliers of the Company are required to
procure REACH-compliant materials.
Apart from this, local vendor engagement,
digital invoicing, contractor care and
supplier query redressal are some of the
Company’s other sustainable sourcing
practices. 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.
CUSTOMER ENGAGEMENT
Reliance drives customer value through
its product innovation for customers,
application and service levels, ability
to deliver a consistently high consumer
experience and its overall reputation and
brand promise in the markets it operates
in. To achieve this goal, Reliance has
undertaken various engagement strategies
to understand the voice of the customer.
RIL Petrochemical business is shifting from
traditional B2B business model to a B2B2C
model. R|Elan™ and Recron® Certified are
the brands that solely function on the
B2B2C model. By engaging directly with
brands and retailers who are well aware of
their target consumers, RIL is able to offer
unique and specialised solutions to cater
to the growing demand. This helps RIL
stay relevant in the fast-paced consumer
driven market. Retail business is leveraging
consumer insights through the use of
technology-enabled tools and enhancing
its core capabilities. Various channels
have been implemented across all store
concepts for capturing customer feedback.
These include feedback forms, customer
feedback registers, message services to
customers and online portals such as
ROMA, Litmus and Happy Calling. In Digital
Services business, customer engagement
begins right at the on boarding stage.
Customer feedback is taken at various
stages, including on-boarding, usage of
services and post resolution of customer
queries. Apart from this, calls from contact
centre, SMS and web links are also used as
feedback channels.
PARTNERSHIPS FOR CHANGE
GOVERNMENT AND OTHER GLOBAL
INSTITUTIONS
RIL is a member of several business and
industrial associations such as The World
Economic Forum, The American Chemistry
Council (ACC), Indian Chemical Council
(ICC), The Chemicals and Petroleum
Manufacturer’s Association (CPMA), Gulf
Petrochemicals and Chemicals Association
(GPCA), World Business Council for
Sustainable Development (WBCSD),
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 European Petrochemicals Association
(EPCA), American Fuel and Petrochemical
Manufacturers (AFPM), Association of
Oil and Gas Operators in India (AOGO),
Federation of Indian Chambers of
Commerce and Industry (FICCI),
Confederation of Indian Industry (CII),
Associated Chambers of Commerce and
Industry of India (ASSOCHAM), Association
of Synthetic Fibre Industry (ASFI), Synthetic
and Rayon Export Promotion Council
(SRTEPC), and The Synthetic and Art Silk
Mill’s Research Association (SASM IRA).
The Company is cognisant of the
importance of stakeholder interaction for
preserving and protecting the environment.
In a unique partnership with the Ministry of
Environment, Forests and Climate Change
(MoEFCC), the Government of India (Gol)
and the Gujarat Ecological Commission
(GEC), the Company actively contributed
to the setup of India’s first Centre of
Excellence (CoE) for the study of the coastal
biodiversity of Jamnagar. This centre is
known as the National Centre for Marine
Biodiversity (NCMB).
Business Partnerships
Hydrocarbon
RIL has forged an strategic partnership
with BP that aims to combine Reliance’s
exceptional project management and
operations expertise with BP’s deep-water
exploration and development capabilities
in the Krishna-Godavari Basin. With a
focus on US shale oil, RIL has two joint
ventures with Pioneer Natural Resources
and Chevron for drilling and completion
activities. With a focus on Industrial
Internet of Things (IIoT) strategy and
the digital manufacturing platform, RIL
is exploring partnerships with industry
leaders such as GE, Honeywell, Siemens,
Emerson, Schneider Electric, among others.
Retail
Reliance Retail is setting up long term
exclusive partnerships with reputed
retailers from across the globe.
In categories such as food, fashion, toys and
much more, Reliance retail has partnered
with Disney to develop and market
co-brand SKU’s. In the premium denim
segment, Reliance Brands has ventured
with Replay jeans. To bring popular retail
concepts like Pottery Barn, Pottery Barn
Kids and West Elm to India, Reliance
Brands has announced partnership with
Williams-Sonoma. The company has further
extended its presence by acquiring stakes in
Mothercare, British kids-wear brand
and Salvatore Ferragamo, an Italian
luxury brand.
Digital Services
With a focus on customer service and
engagement, Digital Services has entered
into a series of partnerships with a number
of organisations. Reliance has made
strategic investments in Hathway Cables,
Datacom Limited and Den networks in
order to provide global standard wireline
infrastructure and services in India.
Through group affiliates, the Company has
invested in Grab-a-grub (logistics), C-Square
(software), Netradyne (AI, logistics),
Reverie (language as a service platform),
Tech Media (new age journalism), SkyTran
(transportation technology), Radisys (5G,
IoT), EasyGov (e-governance), Sankhyasutra
(simulation services) and Haptik (chatbot
solution). In the sports category, Reliance
Jio has entered into an agreement with Star
India for the telecast of all cricket matches
on the JioTV platform. Jio has also tied up
with Zee to make available 37 TV Channels
to Jio subscribers on the JioTV platform.
To contribute to the education sector in
India, Reliance has acquired a majority
equity stake in Indiavidual Learning Pvt
Ltd. (Embibe), a leading AI-based education
platform leveraging data analytics to
deliver personalised learning outcomes to
students.
Academic partnership
To build and attract a pool of fresh talent
and next generation engineers in the
organisation, Reliance has collaborated
with various universities and colleges
across India and the globe. Some such
universities with academic partnerships
are 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; Florida State
University; Massachusetts Institute of
Technology and Washington University in
St. Louis Louisiana State University.
Social Stewardship
Jio has reached 306.7 million subscribers
and provides transformative, quality and
affordable access of end-to-end digital
services for every Indian. Impacts of
Reliance's products, services and community
investment activities on society at large is
mentioned under the Human capital, Natural
capital, CSR report and case studies sections
of the Report. Reliance's strategy is driven by
employee and societal value, which aims to
foster inclusive growth through job creation
and community development. Reliance
seeks to focus strategically on discrete
social problems, all aimed at enabling
lives and livelihoods. The Company is in
the process of conducting evaluation of its
social aspects using the Social and Human
Capital Protocol published by the Social and
Human Capital Coalition. Reliance adopts
rigorous processes to identify the impact
of its social initiatives created on primary
stakeholders. It establishes baseline values
of key indicators that describe the status
of stakeholders at the beginning of the
intervention and periodically assesses the
status of stakeholders with reference to the
baseline.
RESPONSIBILITY TOWARDS
COMMUNITIES
DISASTER RESPONSE
As a responsible business, Reliance swiftly
and effectively responds to disasters that
endanger human lives and livelihoods by
directly engaging with affected communities.
During FY 2018-19, the Company promptly
helped communities affected by floods and
cyclone in Andhra Pradesh, Kerala, Gujarat,
Odisha, Uttar Pradesh and Tamil Nadu.
For more details, please refer Report on
Corporate Social Responsibility on
page no. 182.
CLEANLINESS DRIVE - PROJECT
VERSOWAH!
Reliance worked extensively with Mr. Afroz
Shah and team for the clean up of Versova
beach in Mumbai and sponsored BobCat for
easy retrieval of solid waste off the beaches.
For more details, please refer Management
Discussion and Analysis on page no. 117.
155
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Enabling the Fourth Industrial Revolution
Sr No Key Trends
Reliance Presence
ENABLER - RELIANCE IS PROVIDING/ USING ASSETS AND TECHNOLOGY TO ENABLE LARGER SOCIETAL CHANGES
1.
2.
3.
4.
5.
Digital Economy Convenient and quicker payment
solutions
JioMoney – smart and secure payments, Jio Payments bank –
accessible and affordable banking solutions
Advanced Materials Materials with exceptional
performance in terms of strength and durability
Biodegradable polymers, polymer composites for Armor application,
Relwood- Water resistant and fire retardant material that can
replace wood
Collective Learning Efficient sharing of information to
disseminate knowledge
Jio connecting 58,000 colleges and 1.9 Mn schools; Embibe – Leading AI
based education platform, Jio Gyan Shala providing smart classes
Smart Cities Digitally enabled cities which optimise
resource consumption
Providing wireline infrastructure through FTTH offerings, JioPhone
providing power of data and Internet, JioFi and Jio Router Enabling
transformation
Circular Economy Regenerative approach aimed at
converting waste to value products
Plastic-to-road projects, zero freshwater withdrawal at The Jamnagar
supersite, implement Vapor recovery system (VRS) at retail outlets
TOWARDS NEXT-GEN LEADERSHIP – TAKING STEPS TOWARDS LEADERSHIP IN THIS TECHNOLOGY
Immersive Experience Enhancing overall user
experience by use of AR and VR
Operator Training Simulator (OTS) enabling efficient training of
engineers, piloted VR based technology for training
Big Data for Decisions Analysing vast amount of data to
enable effective decision making
Predictive analytics on demand forecast, Advanced analytical models
along with visualization in R & M Platform
Digital Coverage Pervasive wireless and wireline
network across urban and rural areas
Internet of Things (IoT) Interconnection via Internet of
computing devices embedded in everyday objects
India's largest next gen all-IP data network with pan-India 4G LTE
coverage, Network18’s digital properties are used by over 130 million
people
IoT enabled Vehicle Tracking System, Home IoT sensors for SMART
Homes by Jio, IoT device with real-time edge analytics to assess the
health of rotary equipment
Blockchain Initiatives Decentralised, distributed ledger
to securely record transactional data
Block chain platform integrated with electronic Bill of Lading (eBL),
Blockchain to enable smart contracts with customers and vendors
Incorporating Drones Use of drones to increase safety
and minimise human intervention
Safe, Reliable and quick inspection of flare system, Use of drones for
emergency situation evaluation
Digital Trade Digitally-enabled trade transactions of
goods and services with transfer of data
Robotics and Services Use of machines to perform
repetitive actions or jobs in a shorter and efficient
manner
AJIO facilitates sale and purchase of various fashion and lifestyle,
BookMyShow, MyJio App enabling digital payment for prepaid and
postpaid services
Sir H. N. Reliance Foundation Hospital has multiple automated systems
in diagnostic services, Use of robots for inspection and cleaning of AC
ducts, etc. Robotic Process Automation (RPA) for automating repetitive
processes
Machine Learning Study of algorithms and statistical
models to effectively perform specific tasks relying on
patterns and inferences.
ML based solutions for prediction of process health,
ML enabled chatbot for customers, agents and transporters in
Petrochemicals business
6.
7.
8.
9.
10.
11.
12.
13.
14.
156
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Sr No Key Trends
Reliance Presence
15.
16.
Artificial Intelligence Ability of machine or computer
program to learn from available data
JioInteract - world’s first AI based brand-engagement video platform,
AI based content dissemination under Reliance information
services programme
Cyber Security Practice of defending computer systems,
servers and network to avoid damage, theft and
disruption
Big Data based Security Analytics platform, Reliance Retail, only multi-
brand retail chain in India to have PCIDSS certification, “DevSecOps”
practice in E & P Platform to maintain and sustain platforms
BREAKTHROUGH - LEADERS OF CHANGE IN THIS TECHNOLOGY
17.
18.
19.
Energy Transition Use of cleaner and alternate Energy
sources to conserve natural resources
Developed high yielding Jatropha hybrids, RCAT-HTL technology
converting organic waste into ‘drop-in’ energy dense renewable crude,
developed first fully indigenous prototype of a HT-PEM fuel cell system
Pioneering Biotechnology Use of biomolecular and
cellular processes to develop new products
and technologies
Use of algae photosynthesis in modern agriculture crop productivity
enhancement interventions by connecting photosynthesis with
digital technology
3-D Printing and Its Applications Additive
manufacturing process to create three dimensional
objects from a digital design
Capability to design and print prototypes as well as end-products for
Oil & Gas industry, developed JioFi and Jio Routers
COLLABORATION - WORKING WITH STAKEHOLDERS TO ENABLE TRANSFORMATION
20.
21.
Entrepreneurship Capacity and willingness to develop,
organise and manage a business venture along with its
inherent risks
JioGenNext Hub : advising and mentoring early-stage technology
start-ups, RF empowered Farmer producer Companies (FPCs), Jio Chat
virtual camps provide advice on animal husbandry
Technology for “Space” Application of science
and engineering to the exploration and utilisation
of outer space
In-house technology development of ISROSENE - a specialty fuel for
space applications
157
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 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. Reports published
until FY 2013-14 have been GRI checked
with an ‘A+’ application level. RIL was
among the first companies to adopt the
G4 guidelines and subsequently the GRI
Standards. The Sustainability Report for
FY 2017-18 was prepared in accordance
with the “Comprehensive” option of the
new Standards (including the Oil and
Gas sector disclosures). The reports are
externally assured as per the reasonable
assurance requirements of the ISAE 3000
standard and Type II High level assurance
using AA1000AS standards. RIL is also a
member of World Business Council of
Sustainable Development (WBCSD) and
Global Reporting Initiative (GRI). WBCSD’s
“Reporting matters” 2015 and 2017 have
recognized RIL’s sustainability report as a
leading example of the best practices. The
reports are available at http://www.ril.com/
Sustainability/CorporateSustainability.aspx
In addition to the GRI Standards, the Report
also refers to a large number of nationally
and globally adopted frameworks
including:
1)
International Integrated Reporting
Council’s Report
2) Global Reporting Initiative (GRI)
3) United Nation’s Sustainable
Development Goals (UN SDGs)
4) American Petroleum Institute / The
International Petroleum Industry
Environmental Conservation
Association (API/IPIECA)
Q CAPITAL AND MATERIAL TOPICS
Natural
• Managing Environmental Impacts
• Carbon Abatement and Offsetting
• Energy Efficiency of Operations
• Ecosystems and Biodiversity
• Renewable and Alternative Energy
• Water Management
• Waste Management
Social and Relationship Intellectual
• Supply Chain Management
• Customer Satisfaction
• Community Development
158
5) United Nations Global Compact (UNGC)
Principles
6) Business Responsibility Framework
based on the principles of National
Voluntary Guidelines on Social,
Environmental and Economic
Responsibilities of Business (NVG–SEE)
7) National Guidelines on Responsible
Business Conduct (NGRBC)
8) World Business Council for Sustainable
Development’s (WBCSD’s) focus areas,
9) Greenhouse Gas (GHG) Protocol
10) Task Force on Climate-related Financial
Disclosures (TCFD) recommendations
11) Natural Capital Protocol (NCP)
12) Social and Human Capital Protocol
13) United Nations Guiding Principles on
Business and Human Rights (UNGP)
14) The Global Recycle Standards (GRS)
Version 3.0 for traceability of fibre
15) Social return on investment (SROI),
16) Prime Minister’s Office (PMO) initiatives
for India / NITI Aayog.
The Report has been externally assured
by KPMG India for selected sustainability
related disclosures in the report as per
Reasonable Assurance requirements of the
ISAE 3000 (Revised) Assurance Standard.
Please refer Page No 204-205.
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. The scope of sustainability
reporting was extended to Reliance Retail
and Digital Services since FY 2017-18. Until
then the scope of reporting was limited to
RIL and Reliance Foundation.
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 the 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-level CSR and Governance
committee.
MATERIALITY ASSESSMENT
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; and
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 2017-18.
Link: https://www.ril.com/DownloadFiles/
SustainiabilityReports/RILs%20
Sustainability%20Report%202017-18.pdf
Human
• Talent Attraction and Retention
• Innovation
• Health and Safety
• Employee Diversity
• Labor Management
Intellectual
• Innovation and Technology
• Managing Systemic Risks from
Technology Disruptions
• Data Privacy and Security
Financial
• Economic Performance
Manufactured
• Raw material security
• Security and asset protection
• Asset Utilisation and Reliable Operations
• Digital Inclusion
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 TASK FORCE ON CLIMATE RELATED FINANCIAL DISCLOSURES (TCFD)
TCFD was established by the Financial Stability Board with the aim of improving the reporting of climate-related risks and opportunities.
These recommendations guide the organisation on how to conduct business and drive commitment in the transition towards a low carbon
global economy.
Reliance has recognised the TCFD recommendations with a commitment to enhance its climate-related disclosures, and improve the
management and reporting of climate-related risks. Reliance acknowledges the efforts around the world aiming to limit global temperature
rise to two degrees Celsius above pre-industrial levels. The principles laid out in the TCFD recommendations are an important step which
help move forward together to improve transparency and build better understanding of potential climate-related risks and opportunities.
Q CORE ELEMENTS OF RECOMMENDED CLIMATE-RELATED FINANCIAL DISCLOSURES
Governance
Strategy
Risk Management
Metric and Targets
Reliance’s governance structure
includes avenues to exercise the
oversight responsibilities with
respect to climate change risks
at multiple levels ranging from
operations to Board of Directors:
1. Oversight and Governance:
a. Board of Directors
b. Board level CSR&G
Committee
2. Identification and
prioritisation
a. Business Risk and
Assurance Committee
b. Functional Risk and
Assurance Committee
c. Business leaders
3. Implementation and
Monitoring
a. Sustainability council
b. Governance and
integration
For more details please refer:
Risk and Governance
Page No 165
Sustainability Report 2017-18
Page No 50
1. Analysis and description of all
business segments of Reliance
covering strategic advantages
and competitive strength
1. Reliance has adopted a Three
Lines of Defense model to
enable continuous and real
time assessment of risks:
1. Reliance has been reporting
annually on its carbon
footprint as a part of Annual
and Sustainability Report.
2. Structured materiality
assessment process in
accordance with the GRI
Standards
For more details please refer:
Management Discussion and
Analysis Page No 158
Business Model Page No 14-15
a. Verification by functional
leaders regarding risk
management procedures.
b. Network of functional and
business risk and assurance
committees providing
guidance on mitigation
of identified risks to
businesses.
c. Group Audit function
providing assurance and
advisory support on the
management systems
2. Climate related risks leading
to business opportunities–Our
approach to circularity in
operations including ROGC
and gasification operations at
Jamnagar
3. Changing the nature of doing
business via new models
such as B2B2C–Plastic
recycling “Value out of Waste”
– Integrated collection and
processing
For more details please refer:
Risk and Governance Page No 165
2. In FY 2018-19 the GHG
emissions decrease by
5.18% as compared to last
year because of change
in fuel mix. The energy
efficiency improvement
initiatives resulted in saving
energy of 2.65 million GJ.
3. RIL’s manafucaturing plants
have been allocated energy
efficiency and renewable
energy targets under the PAT
and RPO schemes
4. RIL is committed to reduce
the carbon intensity of its
energy mix
For more details please refer:
Natural Capital Page No
113, 115
Sustainability Report 2017-18
Page No 76
Board's report Annexure V
Page No. 253
159
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Reliance’s Sustainability Reporting Journey
Reliance Goals for Sustainable Development
RELIANCE GOALS FOR SUSTAINABLE
DEVELOPMENT
HIGHLIGHT FOR FY 2018-19
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 operations parameters for safe,
reliable and efficient operations.
Installation of mast climbing work platform
•
• Stewardship in R&D
• Setup of ROGC at Jamnagar
• Stewardship in R&D
NITI Aayog:
Skill India
NITI Aayog:
Clean India
• Extracting value from bottom of barrel production
• Retail Petro 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 compliant refinery
• Use of drone for safety
NITI Aayog:
Make in India
Opportunity and 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 employees
by 2030.
• Employing people from 16 nationalities
• 49.8% plus are millennials under the age
of 30 years
• Best-in-class policies for women
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 compliant refinery
• R|Elan™ Fabric 2.0 has one of the lowest carbon
footprints in the world
• Advanced materials and composites (ex. RelWood)
• 956 Crore GB of data
Customer Satisfaction
Aspire to be the most customer focused
company with the highest customer loyalty.
• World’s largest migration from free to paid services
• Across the 306.7 million subscriber base of Jio, call drop
rate is below 0.1%.
• Launch of project ACE
Capitals —
Human
Social and relationship
Natural
Manufactured
Intellectual
Financial
160
NITI Aayog:
Skill India
NITI Aayog:
Clean India
NITI Aayog:
Make in India
S
A
F
E
T
Y
C
L
E
A
N
E
N
E
R
G
Y
A
S
S
E
T
U
T
I
L
I
S
A
T
I
O
N
D
I
V
E
R
S
I
T
Y
O
P
P
O
R
T
U
N
I
T
Y
A
N
D
S
T
E
W
A
R
D
S
H
I
P
P
R
O
D
U
C
T
S
A
T
I
S
F
A
C
T
I
O
N
C
U
S
T
O
M
E
R
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19
RELIANCE GOALS FOR SUSTAINABLE
DEVELOPMENT
HIGHLIGHT FOR FY 2018-19
I
G
N
G
A
N
A
M
L
A
T
N
E
M
N
O
R
I
V
N
E
S
T
C
A
P
M
I
NITI Aayog:
Clean India
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.
• ~ 2 billion PET bottles recycled in a year
• LCA studies for polypropylene products
• Stewardship in R&D – Algae to oil
Y
G
R
E
N
E
N
A
E
L
C
E
T
S
A
W
T
N
E
M
E
G
A
N
A
M
N
I
A
H
C
Y
L
P
P
U
S
T
N
E
M
E
G
A
N
A
M
H
T
L
A
E
H
R
E
T
A
W
T
N
E
M
E
G
A
N
A
M
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.
• Touched lives of 26 million people
• CSR expenditure of `904 crore
NITI Aayog:
Clean India, Skill India
Waste Management
Ensure efficient use of solid catalysts including
investment in development of bio-catalysts to
replace solid catalysts.
• Developed of advanced ionic liquid
catalysts
NITI Aayog:
Clean India
NITI Aayog:
Make in India
NITI Aayog:
Healthy India
NITI Aayog:
Clean India
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.
• VLECs shipped ethane from USA with
the lowest carbon footprint
• Warehouse automation
• Local supplier development
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.
• 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
Water Management
Deploy world-class technologies across all sites
to reduce fresh water consumption per unit of
production by maximising waste water recycle
and minimizing external discharge.
• 40.74% water recycled in FY 2018-19
• Total water recycled and desalination of
water at Jamnagar
• Achieved zero water discharge at Silvassa
and Hoshiarpur
161
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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 Reliance’s
strategic objectives and to ensure
that Reliance only accepts risk
for which Reliance is adequately
compensated. Reliance’s Enterprise
Risk Management framework drives
a consistent and systematic approach
for identifying and managing risk,
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, further progress
has been made with driving a risk
aware culture through continuous
self-assessment processes based
on clear accountabilities for risk
and control ownership and ongoing
oversight by designated Committees.
Furthermore, Reliance is building
on the investments in continuous
controls monitoring capabilities
across the Three Lines Of Defense,
enabled by analytics technology,
covering all key risk areas.
162
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 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 Reliance manages risks
through Reliance’s Risk Management
Framework.
2. RELIANCE’S VIEW ON RISK
2.1 Risk Appetite
Reliance’s risk appetite is linked to
its strategic approach and is based
on the stance it has taken across
four areas:
• Strategic and Commercial:
Reliance manages strategic risk in
the pursuit of profitable growth
in both mature and emerging
markets. Given the volatile markets
and economic climate in which it
operates, the adaptability of its
people, its service offerings and its
infrastructure are key.
• Safety and Operations: Reliance
is committed to conduct all its
activities in a manner appropriate
to avoid harm to employees and
the community. Reliance strives to
deliver safe, reliable and compliant
operations.
• Compliance and Control:
Compliance with laws and
regulations is fundamental to
maintaining its license to operate
in the various industries that
it operates in. Reliance also
believes that accurate and reliable
information provides a competitive
advantage and is key to effective
management of its business.
It therefore accepts minimal risk in
relation to reporting risks.
• Financial: Reliance manages
financial risk to maintain a prudent
financing strategy, even when
undertaking major investment 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 Reliance’s business processes and
governance architecture.
2.2 Risk Factors
Reliance emphasises risks that
threaten the achievement of the
Group’s business objectives over
the short to medium-term. As part
of its annual planning process,
Reliance reviews plan related risks,
opportunities and uncertainties.
It identifies those as having a high
priority for particular oversight
by the Board and its various
committees and by Executive
Committees. An overview of
these risks is provided hereafter,
including the actions taken to
mitigate these risks and any related
opportunities.
163
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Risk and Governance
1 STRATEGIC AND COMMERCIAL RISKS
Commodity Prices and markets:
Reliance’s financial performance is subject to the fluctuating prices of
crude oil, natural gas and downstream petroleum products. Prices of
oil, gas and 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,
North 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 hedging of
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.
Cybersecurity risk
As Reliance continues its journey with digital transformation, it faces an
increased exposure to cyber risks. A digital security breach or disruption
to digital infrastructure, due to intentional or unintentional actions, such
as cyber- attacks, data breaches or human error could lead to serious
business impact. These include revenue loss, 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 non-compliance and reputational damage.
Mitigation: Reliance continues to strengthen its Cyber Security Posture
through next generation Cyber Security Architecture to meet the
demands of the digital transformation and protection against emerging
cyber threats. Next generation architecture includes enhancement of the
technical safeguards for prevention and detection of threats, situational
awareness and automated security response.
Changes since last year:
Reliance’s industry continues to witness a growth in cybersecurity breaches, both in their prevalence and in their disruptive potential. Data Fraud/
Theft and Cyber Attacks have been identified in the top 5 global risks by the World Economic Forum (WEF) in its latest Global Risk Report (2019)
owing to rising cyber dependency with the increase in digital interconnection of people, things and organisations.
Considering the large digital footprint of Reliance, ongoing efforts are required to combat these evolving threats.
Some of the notable measures are:
1. A Continuous Improvement Program (CIP) for cyber security that was instituted across Hydrocarbon, to keep pace with ever increasing threats and
improve the security posture of the company, has now been extended to cover the other group companies of Reliance
2. Innovative Cyber Security Initiatives including simulated phishing programmes were launched to spread awareness on Cyber Security
3. Several businesses of Reliance are now benchmarked against ISO 27001, the global standard for ISMS (Information Security Management System)
4. Reliance’s retail business operations (Reliance Retail and Petro Retail) process that involves payment card transaction processing is now certified to
the global PCI DSS 3.2 (Payment Card Industry Data Security Standard)
5. Big Data based Security Analytics platform has set up for proactive detection and remediation of threats with efficient detection techniques and
improved incident response capabilities
Data Privacy Risk
New Data privacy laws are increasing the imperatives to protect
personal information of individuals. The endless series of data scandals
and breaches in the last year have transformed the way that citizens,
governments and organisations think about data privacy globally.
Currently in India, the Data Privacy requirements are governed by the
Information Technology Act 2000, amendment 2008. Reliance is evolving
its own Data Protection Policy based on Indian and global best practices.
Mitigation: At Reliance, Data Privacy is taken up as one of the top
priorities. Reliance is committed to safeguard the privacy of individuals
and ensures that they continue to trust RIL with their personal data or
information. RIL has adopted the 'Privacy by default' principles in its
approach to Data Privacy i.e., privacy of data and information is upheld
first by default.
Changes since last year:
A group wide Data Privacy Framework has been established, which includes the following elements:
1. A Data Privacy Policy has been published to all employees and is hosted on all RIL public facing applications
2. A Privacy Impact Assessment has been conducted for all group companies
3. As required by the existing privacy legal requirement, employees’ consent was taken to deal with the personal data as per employment contract
4. Awareness Campaigns have been deployed across Reliance to promote awareness on Data Privacy
5. Major businesses of RIL are ISO 27001 certified, which is a reasonable security compliance as per Information Technology Act 2000,
amendment 2008
164
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 Jio Customer Experience and Retention
Reliance Jio has now more than 307 million customers on the back of
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 endeavor 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 and tower infrastructure 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. Leverage Jio’s Pan-India network foot print and digital ecosystem
to expand Jio’s product offerings to diversify revenue sources and
customer base.
2. Ongoing investments and operational excellence in the network
infrastructure contribute to delivering on full population coverage with
superior customer experience.
3. 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.
4. 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.
2 SAFETY AND OPERATIONAL RISKS
Health, Safety and Environmental (HSE) risks in Operations
Reliance operates a wide spectrum of businesses in the hydrocarbon
sector, which poses HSE risks that are managed through various
embedded controls at multiple levels in the processes in the
hydrocarbon value chain. 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 and security breach, can result
in loss of life, environmental degradation and overall disruption in
business activities. Risk management in Reliance’s hazardous operations
involves technical risk analysis by competent and experienced teams.
The risk assessments involve identifying the potential hazardous
situations and the corresponding controls, including engineered controls
and administrative controls that enable the risks to be within the
organisation’s risk policy.
Mitigation: The Reliance HSE policy requires that ‘Safety of persons
overrides all production targets’. This is underpinned with the HSE
Management principle 'Reliance believes that all injuries, occupational
illnesses as well as safety and environmental incidents are preventable.'
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. In the
consistent pursuit to achieve safe, reliable and compliant operations at
Reliance, risk management is the fulcrum to achieve the goals. A separate
Safety and Operational Risk (S&OR) function which is independent of the
line, along with its embedded HSE function, provides oversight on safety
and operating exposures and periodically conducts assessments and
reviews to provide independent assurance on the conformance to the
Operating Management System.
Changes since last year:
Reliance’s operating entities progressed risk management by reviewing risk registers and keeping them ‘Live’. There have been focused risk
mitigation discussion and actions that encompass strengthening existing controls and including new risk mitigation actions where appropriate. The
annual risk process sets objectives and timelines for each level of the organisation to enable smooth functioning of the safety and operational risk
management process.
Reliance’s cascaded governance structure has matured in driving holistic risk management and engages the line management actively. The key risks
in each facility are discussed in the various risk committee meetings and periodic assurance is provided for the effective control of the risks. The
three lines of defense for risk management enables managing the availability and adequacy of the controls.
In addition to the risk management process, a robust risk culture has been a focus, which included enhancing risk management competency among
the leadership and the asset facing personnel.
Reliance believes that conforming to the requirements of Reliance’s Operating Management System (OMS) will lead to long-term sustenance of
operating excellence and support Reliance’s goal of no accident, no harm to people and no damage to environment.
165
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Risk and Governance
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 risks,
including exploration vessels, oil tankers, chemical tankers, gas tankers,
dry cargo vessels, and Reliance is operating a fleet of tugs port service
vessels and operations of port and terminal infrastructure. With most
crude being supplied to Reliance by vessel and the overwhelming
majority of refined products being exported by vessels, 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 ensures that all
vessels contracted to carry Reliance cargoes are screened based on
risk prior to its induction. For incident response in shipping, formal
documentation and cascading have been completed.
Reliance is further improving the controls framework for road
transportation working hand in hand with Reliance’s contractors. Reliance
has supported the contractors in accessing quality training for their
drivers and risk mitigation measures during the journey. Reliance has
supported capacity building in the key areas impacting transportation
safety, viz defensive driving training, route hazard mapping and real time
tracking. Reliance’s contractors can use these in an integrated way to
deliver safe operations while on contract with Reliance.
Changes since last year:
Additional 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, lightning and earthquakes.
If the Company does not respond, or is perceived to not respond, in an
appropriate manner to either an external or internal crisis, its business
and operations could be severely disrupted. Inability to restore or replace
critical capacity to the required level within an agreed timeframe would
prolong the impact of any disruption and could severely affect Reliance’s
business and operations.
Mitigation: Reliance maintains a proactive posture by continuously
monitoring and assessing emerging threats, vulnerabilities and risks to
manage its physical security. 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, any disruption or incident, Reliance
maintains disaster recovery, crisis and business continuity management
plans.
Changes since last year:
There have been no significant changes in the security risk exposure over the last 12 months. Cyber threats, insider threats and terrorism risks
continue to be causes for concern globally. Continuous application of pre-emptive mitigation measures, proactive engagement with concerned
stakeholders and sustained relationships with sovereign agencies continue.
3 COMPLIANCE AND CONTROL RISKS
Regulatory compliance risks
The evolution of the global regulatory environment and at home, the
Government of India's ambition for reforms and transparency have
resulted in increased regulatory scrutiny that has raised the bar with
regards to regulatory compliance. This requires the alignment of
corporate performance objectives, while ensuring compliance with
regulatory requirements.
166
Mitigation: Reliance recognises that meeting all applicable regulatory
requirements can be challenging. A comprehensive and digitally enabled
compliance management framework has been deployed which is
designed to:
• Understand changes to regulatory standards in a timely manner and
assess their impact to strengthen decision making processes and
integrate these in the business strategy of each of the industries in
which it operates
• Convergence of risk, compliance processes and controls mechanisms to
ensure continued operational efficiency and effectiveness of business
processes
• Assign single point of accountability with appropriate responsibility
matrix cascading till the lowest level of organisation
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19 4 FINANCIAL RISKS
Treasury risks
Treasury risks include, among others, exposure to movements in interest rates and foreign exchange rates. Reliance also maintains sufficient
liquidity, so that it is able to meet its financial commitments on due dates and is not forced to obtain funds at higher interest rates. It has access
to markets worldwide and 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.
Foreign Exchange risk
Reliance prepares its financial statements in Indian Rupee (`), 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: The interest rate risk is managed through financial
instruments available to convert floating rate liabilities into fixed rate
liabilities or vice versa, and is aimed at reducing the cost of borrowings.
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.
business outcomes by allowing the
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
Reliance’s risk management
The Group 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
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, has articulated an
absolute commitment of the Group
to effective risk management and
provides oversight to identify
and understand significant risks,
both long term and short-term.
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
167
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Risk and Governance
strategy, planning, operations,
performance management,
resource and capital allocation
and project appraisal. The BRAC’s
do this by collating risk data,
assessing risk management
activities, reviewing near
misses and incidents through
root cause analysis followed
by implementation of required
improvements.
• Day-to-day Risk Management–
Management and staff at Reliance’s
facilities, assets and functions
identify and manage risk,
promoting safe, compliant and
reliable operations. For example,
Reliance’s Group-wide Operating
Management System (OMS)
integrates Reliance requirements
on health, safety, security,
environment, social responsibility,
operational reliability and
related issues. These Reliance
requirements, along with business
needs and the applicable legal and
regulatory requirements, underpin
the practical 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 Providing a view, independent of
the line, of risks within their area of
functional expertise
2
3
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.
168
MANAGEMENT DISCUSSION AND ANALYSIS (CONTD)Reliance Industries Limited | Integrated Annual Report 2018–19
Glossary
1)
Downstream
2)
Upstream
3)
Complexity Index
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.
The Complexity Index (CI) 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)
5)
6)
7)
8)
9)
Gross Refining Margin (GRM)
GRM is the difference between crude oil price and total value of petroleum products produced by the refinery.
Crude throughput
Crude throughput is the total amount of crude that is processed in the refinery.
Crack spreads
Crack spreads are differences between wholesale petroleum product prices and crude oil prices.
Refinery Off gas Cracker
A refinery off-gas cracker is a petrochemical unit that uses the gas generated as a byproduct of refining
operations.
Pet Coke Gasification
The gasifier converts petroleum coke, the lowest value refinery residue, into high value syngas.
Coal Bed Methane (CBM)
CBM is a form of natural gas extracted from coal beds.
10) LTE Technology
11) Additives
12) Condensate
13) Greenhouse Gas
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.
Specialty chemicals incorporated into fuels and lubricants that enhance the performance of the finished
products.
Hydrocarbons that are in a gaseous state at reservoir conditions, but condense into liquid as they travel up the
wellbore and reach surface conditions.
Gases that trap heat in Earth’s atmosphere (e.g., water vapor, ozone, carbon dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride).
14) Liquefied Natural Gas
Natural gas that is liquefied under extremely cold temperatures to facilitate storage or transportation in
specially designed vessels.
15) SDG
Sustainable Development Goals - set of 17 goals declared by the United Nations
169
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. REPORT ON CORPORATE SOCIAL RESPONSIBILITY
Changing lives,empowering India
Jagannatha
Kumar
Jalaj
Dani
Hemant
Desai
Dhanraj
Nathwani
Reliance has been involved in various initiatives
for creating lasting social impact. It recognises
that sustainable development is at the core of its
business decisions and therefore has aligned its
sustainability strategy with its business goals.
Reliance’s efforts aim to bring about a paradigm
shift and facilitate transformative change
towards building an inclusive India.
Reliance’s direct engagement model offers
multiple opportunities to empower the
marginalised sections of society and make
a meaningful difference in people’s lives.
Application of technology across programmes
and adoption of innovative practices are shaping
future strategies and actions through which
Reliance is now able to exponentially expand the
scale and speed of its reach and impact.
A large constituent of the community with whom
Reliance works consists of underserved people
who often do not have access to knowledge or
information on best practices and continue to be
vulnerable.
Through its initiatives in the sphere of Rural
Transformation, Health, Education, Sports for
Development, Disaster Response, Arts, Culture
and Heritage, and Urban Renewal, Reliance is
creating sustainable change.
Reliance’s social initiatives have so far touched
26 million people across India in more than
18,000 villages and 200 urban locations.
170
Reliance Industries Limited | Integrated Annual Report 2018–19 Reliance Industries Limited is keenly aware
of its responsibilities towards the larger
community which is India, which has put its
trust and faith in the Company to make it
the largest private company in the country.
As an organisation, Reliance owes its
success to the people of India and strives to
work for their sustainable development.
CSR activities of the Company are carried
out under the aegis of Reliance Foundation
(RF). Established in 2010, under the
leadership of Smt. Nita M. Ambani, RF has
emerged as a leading corporate foundation
addressing nation’s multiple development
challenges. RF has touched the lives of 26
million people through various platforms.
Reliance’s initiatives in the areas of Rural
Transformation, Health, Education,
Sports for Development, Disaster
Response, Arts, Culture and Heritage, and
Urban Renewal are in keeping with the
Sustainable Development Goals (SDGs)
outlined in the United Nations 2030
Agenda for Sustainable Development
and India’s National Developmental Goals.
The Company’s CSR policy and initiatives
delineates the vision, mission, thrust areas
and key requirements as per the Schedule
VII of Section 135 of the Companies Act,
2013 which lists out various areas in which
corporate entities are expected to deploy
their CSR funds and implement programmes
for social development. During FY 2018-19,
Reliance spent `904 crore on CSR initiatives
on these focus areas.
RELIANCE FOUNDATION OUTREACH
Legend
Rural Transformation
Health
Education
Sports for Development
Disaster Response
Arts, Culture and Heritage
Urban Renewal
Plant locations with CSR activities
171
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Reliance’s commitment by intensively
engaging with the communities and
penetrate into the critical issues that
are physically untouched through
direct interventions.
(iii) Leveraging Technology
Reliance leverages technology to
provide sustainable solutions.
These technological interventions
connect communities on multiple
digital platforms for optimum use of
resources, informed decision making
and capacity building. Through the
use of technology, Reliance has made
significant progress in reaching out
to people with various services such
as information advisories, digital
classrooms, virtual sports clinics and
record keeping of patients, among
others.
Reliance encourages its employees
to voluntarily contribute to social
causes. Periodic inputs are obtained
from employees on their interest to
contribute to a particular cause.
The Company leverages specific
skill sets of employees and allocates
resources for effective delivery.
CUMULATIVE REACH
(in Million)
March-19
March-18
March-17
March-16
March-15
Q KEY ACHIEVEMENTS OF RURAL TRANSFORMATION PROGRAMMES
75% programme villages
were made water secure
83% farmers
reported saving in input cost on agriculture
73% families
are food secure throughout the year
77% farmers
reported enhancement in income levels
80% increase
in daily vegetable intake among children
enrolled in anganwadis under the Rajmata
Jijau Nutrition Mission, Maharashtra
75% fisherfolk
reported positive outcomes by following
information advisories
Reliance’s social initiatives are based on a
three-pronged strategy:
(i) Direct engagement with the
community
To generate meaningful change,
which is sustainable, Reliance directly
engages with the community. A team
of trained professionals from Reliance
Foundation directly engage and
collaborate with the communities,
right from understanding their needs,
planning and implementing the
programmes, and measuring the
values and impact they have created.
(ii) Forging Partnerships and
Collaborations
Reliance Foundation forms strategic
partnerships with state and local
governments and non-government
organisations working at the
grassroots level to bring in synergy
to various development initiatives. It
collaborates with the organisations for
sharing technical knowledge, human
resources and infrastructure. These
partnerships support in delivering
Rural Transformation
Reliance works with some of the most
marginalised communities in India to
create shared value. Instead of being
passive receivers of aid, Reliance empowers
the community to take charge of their own
development.
Community being the primary stakeholders
in the process of development, Reliance
engages the community members in
planning and implementation of the village
development plans, empowers them
through trainings, and works towards
scaling and sustaining the initiatives.
They are partners in the process of social
transformation and are deeply invested
in the vision of a self-sustained and
flourishing village.
172
62012526REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19
Through the collaborative efforts of
the communities and Reliance, rural
institutions – Village Associations (VA) - are
built and leaders are groomed from among
the people to ensure sustainability. The VAs
then undertake initiatives to tackle various
issues of development such as water
scarcity, lack of food and nutrition security,
dearth of alternative livelihood options,
lack of access to markets and the exclusion
of women from financial decision-making.
Reliance partners with grassroots
organisations, local government
departments and other technical resource
agencies to share best practices, create
a knowledge platform and leverage
resources.
Through its information services
programme, Reliance provides critical
information to rural populations in the
areas of agriculture, animal husbandry,
marine/inland fisheries, employment and
skilling, government schemes/subsidies,
insurance, civic services, health, education,
micro-enterprises and local e-commerce
linkages.
The rural transformation initiatives have
helped empower communities, improved
the quality of livelihood assets, provided
food, nutrition and water security,
improved access to markets, empowered
people through technology and diversified
livelihood options.
The initiatives under the rural
transformation programme have
contributed to various national priority
missions such as Gram Uday Se Bharat
Uday Abhiyan, Unnat Bharat Abhiyan,
Swachh Bharat Abhiyan, Skill India Mission
and Digital India.
More than 7 million people across 18,000
villages have been impacted through the
rural transformation programme.
The population served through this
programme are small and marginal
farmers, livestock owners and fishermen.
EMPOWERED COMMUNITIES
DRIVING CHANGE
Reliance empowers rural communities
to organise themselves into VAs, Farmer
Producer Companies (FPCs) and
Women Thrift Groups (WTGs). It also
closely works with the Gram Panchayats.
These community level institutions
work to address social development issues
in the villages.
Village Association
The VA is a democratic village level
institution comprising both men and
women who collectively work towards
efficient governance of the village.
560 VAs and 3,000 leaders are helming the
process of development. Dual membership
per household ensures that women
are part of the development dialogue.
The VA mobilises and galvanises the
community to plan, manage resources
and execute development projects. To
execute these projects, the VA draws up
inclusive village action plans, ensures
community contribution either in the
form of finances or shramdaan, leverages
funds and maintains a relationship with
the government and other agencies. All
the processes and practices of the VA are
governed by the principles of transparency,
open decision making and accountability.
Reliance’s institution building and
leadership development initiatives at the
village level are creating steady, systematic
and sustainable change.
After intensive engagement, many of these
VAs are now able to independently govern
themselves and are ready to transition to
newer roles in spearheading community
development processes.
The community members have also taken
up leadership roles and contributed in
bringing transformation. Some of these
leaders have been honoured at the
district, state and national level for their
contribution.
Furthermore, the programme has
generated awareness amongst
communities on different government
schemes and sensitised them on the
importance of collective action to leverage
its benefits. They are now able to access
various government schemes and engineer
their rural transformation journey
independently.
This year Reliance played an active role in
People’s Plan Campaign of Government
of India by supporting Gram Panchayats
to develop a comprehensive plan for
holistic economic development. In
partnership with National Institute of
Rural Development and Panchayati Raj,
awareness programmes were conducted
in 1,812 Gram Panchayats on the need for
participation in development planning
process. Further, it intensively supported
244 Gram Panchayats in preparing their
development plans. This will lead to greater
mobilisation of financial resources into the
villages which will aid in their development.
VILLAGE LEADERS APPRECIATED
Nishaben Choudhri, a women leader and a farmer
from Zankhvav village of Surat district, Gujarat, was
conferred with the Pandit Deen Dayal Upadhyay Krishi
Vigyan Protshahan Puraskar for farm innovation. She
was also awarded prize money of `50,000.
173
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CONTD)
Value Addition And Market Linkages
Through Farmer Producer Companies
After intensive efforts to increase the
area under production as well as the
productivity of the existing land, through
water security measures and sustainable
agricultural practices, Reliance worked to
address the next problem faced by farmers
– the marketing of produce.
Traditionally, farmers in India have faced
the issue of establishing market linkages,
which negatively affects their incomes and
their quality of life. As a solution to these
problems, Reliance empowers farmers
to set up FPCs. These farmer-owned and
managed companies help them come
together as a collective, aggregate produce
for economies of scale and bargain for
better market prices.
The FPCs in Jasdan, Gujarat and Jamai,
Madhya Pradesh have started creating
value addition by sorting, grading,
packaging and processing agricultural
and horticultural produce. They have even
started trading in finished products instead
of raw commodities with their own brand
of groundnut oil. The oranges from Agar,
Madhya Pradesh and guavas from Sawai
Madhopur, Rajasthan are making their way
to retail outlets across the country.
The FPCs have successfully established
linkages with various government
institutions such as NABARD & Department
of Agriculture to leverage support for
farmer training, capacity building, raising
working capital and acquiring finance to
purchase assets for FPCs.
The FPCs have established links with agri-
input companies and government agencies
to provide quality inputs at reasonable
prices. The Kamareddy Progressive FPC
174
ventured into an altogether new business
of hiring out farm machinery that was
purchased at `40 lakh, with 50% subsidy
provided by the Department of Agriculture.
Four FPCs have received a collective equity
grant of `35 lakh from the Small Farmers
Agri-business Consortium.
and job creation. So far, 111 WTGs are
supported by Reliance.
Value addition through sorting and grading
So far, Reliance has mentored the
formation of 22 FPCs spread across 11
states. Of these, 17 FPCs are registered
with NCDEX and 6 FPCs are registered
with e-NAM platform for online trading of
produce.
Till March 2019, the Reliance mentored
FPCs have nearly 32,000 farmer
shareholders. During the same financial
year, these companies recorded a collective
annual turnover of `40 crore.
Economic Empowerment Through
Women Thrift Groups
WTGs provide an opportunity for women to
play a more meaningful and economically
active role in their homes and in the village
as well.
It is a platform to bring social and
economic freedom to women through the
accumulation and retention of local wealth
within the village, which is controlled and
managed entirely by women. It is a model
that further enables women to participate,
drive and manage the socio-economic
change process while being financially self-
reliant. It improves their decision making
capacities. The financial self-reliance of
women especially has the potential to serve
as a vehicle for social change, through
which multiple social interventions for
development can be delivered, including
financial literacy, education, health, digital
literacy and skilling for self-employment
Women’s meeting at Jasdan, Gujarat
Empowerment Through
Digital Platforms
Access to knowledge resources and
information is an important step towards
empowerment. Ironically, those who need
it the most are deprived of it. Information
asymmetry deprives the poor and
marginalised communities from accessing
rightful entitlements. Reliance has set
up a digital platform to provide the right
information at the right time.
Reliance collaborates with an ecosystem
that comprises 1,171 knowledge and
infrastructure partners, thematic
experts, including research institutions,
government departments, NGOs and
grassroots organisations. These partners
provide invaluable information on crop
management, livestock care, ocean state
forecasts, cyclone warnings, schemes and
subsidies, technology, healthcare, civic
services and other topics.
A variety of modes are used to disseminate
information among communities which
includes the toll free helpline number:
1800 419 8800, a YouTube channel,
video calls, audio/video conferencing,
multilingual voice messaging service, All
India Radio, community radio networks
and social media platforms. Additionally,
various field based programmes are also
conducted.
The timely reception of information could
be the deciding factor which prevents a
pest attack on a farmer’s land or prevents
the fisherman from entering the sea during
a dangerous storm. It helps to avert losses
and dangers and also augment income
REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 and utilise government schemes such as
shepherd insurance, which they would
otherwise not be aware of.
To strengthen the process, the programme
is moving towards artificial intelligence
based content dissemination to
beneficiaries. Additionally, the programme
is working towards providing weather
based agro advisories at a micro-level.
Enhancing the
livelihoods of fishermen
Unpredictability, risk and uncertain
returns characterise the vocation of
fishing for most fisherfolk in India.
Reliance seeks to mitigate all three
issues through the dissemination of
advisories on potential fishing zones,
ocean state forecast and cyclone alert.
Based on this information, decisions can
be taken to avoid dangers to life as well
as income. This is especially useful for
marginal fishermen, who use traditional
and low-end boats, and constitute
a majority of the fishermen in India.
Reliance addresses the critical needs
of almost 15% of marine fisher folk in
India to ensure a reasonable return on
investment made per trip.
Evidence from the coastal region has
shown that the advisories helped
fishermen in enhancing income, saved
input cost and their lives from cyclone
and erratic weather conditions. This year,
1.17 Lakh fishermen were supported
by Reliance of which 15% are inland
fishermen (2.73 lakh fishermen since
inception).
The information services programme has
reached more than 2.3 million individuals
in 16,000 villages across 18 states. Overall,
these advisories have reached out to 7.2
million individuals since inception, thus
emerging as a powerful tool of knowledge
dissemination.
The programme contributes to the Digital
India mission of Government of India which
is aimed at enhancing the livelihood of
rural segments by means of technology.
WATER SECURITY
Water being vital for an agrarian
economy, Reliance endeavours to make
its intervention villages water secure.
Towards this end, 85.8 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. These efforts
resulted in 434 villages becoming water
secure.
Most of these villages have formed water
user groups for managing and regulating
usage. The positive impact created through
water interventions has resulted in reduced
drudgery for women, who apart from
tending to their household duties, also
have to walk several kilometres to fetch
water. It has also increased the land use,
cropping intensity, agricultural production
and income for communities. Owing to this
effort, over 38,500 hectares of land have
received assured irrigation for two cropping
seasons.
Reliance also partnered with several
non-government organisations, including
Paani Foundation, to promote the cause of
water conservation.
FOOD SECURITY
In an effort to ensure food security of small
and marginal households, integrated
sustainable agriculture practices such as
use of better quality seeds, application
of organic manure, integrated nutrient
management, integrated pest and disease
management measures were promoted.
Reliance has collaborated with different
organisations to bring in innovative
solutions to enhance farm production.
This year, Reliance piloted agricultural
production enhancement technologies
such as precision farming, crop cafeteria,
WATER – CHANGING VILLAGE
LANDSCAPE
Reliance has been supporting villages to
improve their farm production by ensuring
sustained availability of water. Shivani BK,
a small village in the district of Yavatmal
in Maharashtra, is a shining example of
how collective action has reversed years
of human inflicted degradation of natural
resources.
With contribution of shramdaan by
the villagers, 697 million litres of water
harvesting capacity was created, which
has resolved the drinking water woes of
the village and increased the availability
of water all year round. This feat laid the
foundation for the adoption of sustainable
agricultural practices, leading to 200%
increase in agricultural production and
augmented cropping intensity.
The motivated villagers participated in
a state level competition to create water
harvesting structures, and bagged first
place at the taluka level with a prize money
of `15 lakh.
introduction of stress tolerant crops,
system of rice intensification (SRI), plastic
mulching and other practices to augment
farm productivity.
Second crop in Bidar, Karnataka
175
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Stress Tolerant Crop Varieties and Sustainable Agricultural Practices
Reliance’s food security intervention is
spread across multiple agro-climatic
zones. Various approaches to benefit the
farmers have been adopted. These include
participatory variety selection (PVS),
adoption of good package of practices
(PoP), SRI and identifying stress tolerant
(heat and drought resistant) seed varieties
to suit the changing climate. These
practices aid in increasing the production
of the land.
PVS involves collaborations between
farmers and leading research institutions.
They study the best suited variety of crop
for the agro-climatic area. These varieties
have desired features such as drought
tolerance, high yield, heat tolerance, short
duration, etc.
PoPs promoted by RF are soil testing, seed
variety selection, seed/seedling treatment,
early transplanting of young seedlings
(15 days old), optimal spacing between
rows, integrated nutrient management
(INM), integrated pest management (IPM)
using bio pesticides, proper weeding using
cono-weeder and irrigation as per crop
requirement.
SRI practices adopted by farmers are
seedling treatment, optimum spacing
and seed rate, seedling transplanting at
young age (15 days), integrated nutrient
management (INM), integrated pest
management (IPM) and weeding using
cono-weeder.
The RF team has successfully identified
paddy seed varieties such as DRR-44
& Bina-17 (Balangir) and Danteshwari
(Itarasi) for seed production. In the demo
plots, the average yield was 40% higher
than the control plot yield because of
adoption of good PoPs. The average yield
in SRI demo plots was 114% higher than
the control plot yield.
The key achievements in the year are 48%
higher yield due to Danteshwari paddy
seed and 103% higher yield due to Bina-11.
The interventions resulted in bringing
65,500 Ha of land under sustainable
agricultural practices. Over 49,800
households have become food secure with
access to at least 10 quintals of food grains
each year.
NUTRITION SECURITY
Interventions promoting nutrition have
continued to yield significant results in
the form of more than 13,000 Reliance
Nutrition Gardens (RNGs) that have
positively impacted over 1 lakh individuals
this year.
Reliance has entered into a partnership
with the Government of Maharashtra
under its Rajmata Jijau Nutrition Mission to
promote RNGs in anganwadi premises in 16
districts. Early results of an internal impact
study indicates that the average production
of fresh fruits and vegetables was more
than 300 Kgs in a year. The introduction of
fresh fruits and vegetables in the daily food
intake of the children has improved their
general nutrition level. This initiative is
improving the dietary intake of over 2 lakh
children.
DE-RISKING AND DIVERSIFYING
LIVELIHOODS
The alternative livelihoods promoted
by Reliance provide protection against
uncertainties and catastrophes that affect
households dependent on agriculture.
Small and marginal farmers were
176
encouraged to take up goat-rearing,
poultry, bee keeping, nursery raising,
mushroom cultivation and vermi-
composting and other viable options.
ECOLOGICAL SECURITY
Ecological security is of importance to
everyone, but within the rural context,
it becomes all the more significant since
ecological degradation can directly impact
their livelihoods and their lives. To provide
the much needed ecological security,
Reliance is moving towards climate smart
agriculture through the following practices:
Improving soil health
•
• Enhancing the green cover through
large-scale plantation activities
• Encouraging horticultural activities
Community RNG at Sendhwa, Madhya Pradesh
To augment the livelihoods of existing
livestock owners, Reliance has conducted
over 1,190 livestock camps in remote
locations. Through these camps, over 2.1
lakh livestock animals have been provided
treatment, which includes vaccination,
artificial insemination, improved breeding
practices, deworming, etc. Improved
livestock health translates into augmented
incomes for the poor and landless.
This year, 18,000 rural families have
benefitted from alternative livelihoods
(more than 37,000 families since inception)
with 15% more income as compared to the
previous year.
REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 These measures have led to significant
improvement in soil texture, structure,
microbial activity and aeration. This
year, over 5,800 farmers were assisted
in conducting soil health tests (over
19,200 tests since inception). Increase
in availability of water and significant
reduction in soil erosion have resulted
in improved land productivity. For many
households, it has served as a medium of
additional income.
On World Environment Day, rural
communities and employees were
motivated to plant saplings. The event saw
an enthusiastic participation of over 20,000
people from over 150 villages across 12
states.
To promote biodiversity, over 0.49 million
saplings were planted during FY 2018-19
(over 21.5 million saplings planted since
inception).
Health
Reliance, through its health programmes,
addresses primary healthcare issues
around affordability and accessibility of
quality healthcare. It strives to improve
awareness and encourage healthy living
practices. A range of healthcare services
spanning the entire life cycle of patients
is offered. Through tertiary healthcare
facilities such as multi-specialty hospitals,
the Company provides specialised services
at subsidised prices to the communities.
The health programmes have reached
out to 2.5 million people and provided
over 6 million patient consultations since
inception.
Reliance also supported several
organisations in providing a range of
healthcare services, including preventive
care, maternal and child health, specialised
care for patients with cardiac and kidney
problems, palliative care for terminally ill
cancer patients, leprosy, coronary heart
diseases, etc.
The health initiatives of Reliance supports
government initiatives on reproductive,
maternal, new-born, child and adolescent
health, health systems strengthening,
non-communicable disease control
programmes and communicable disease
control programmes.
SIR H. N. RF HOSPITAL (RFH)
Community Health Outreach
Operations
With its multilevel presence in patient
care with the help of RF Health Outreach
program, RFH ensures access to affordable
and quality primary and preventive
healthcare to all sections of society.
During the year, more than 25,500 families
were enrolled for the Health Outreach
Program (1.79 lakh families since inception)
and availed healthcare services at a
location which is accessible and at an
affordable cost from a team of qualified
Health Care professionals.
The five Mobile Medical Units (MMUs) and
three Static Medical Units (SMUs) of the the
RFH Health Outreach programme reaches
out to 11 wards and 74 marginalised
urban slum locations in Mumbai and Navi
Mumbai.
Over 1.5 lakh consultations took place this
year (5.8 lakh since inception). This includes
over 27,000 specialist consultations (over
95,000 since inception).
Apart from the patient consultations,
the RFH Health Outreach programme
has undertaken several specialised
programmes.
During the year, 16,636 women in the
reproductive age group were screened for
anaemia and over 10,000 were diagnosed
as anaemic. These women were provided
with nutrition counselling and health
awareness. The moderate and severe
anemia cases were treated with hematinic
and deworming as per protocol. Those
requiring specialised treatment were
referred to RFH.
In the year 2018-19, more than 11,500
children under the age of 5 were screened
and 550 children were identified as
malnourished and supported by way of free
of cost treatment and counselling support.
In the area of Non Communicable Disease
Control and Prevention, more than 35,000
individuals were screened for hypertension.
Around 10% of these were newly diagnosed
as hypertensive. Out of 21,000 individuals
that were screened for diabetes, about
5,000 were diagnosed as diabetic. While at-
risk patients were advised to make life style
modifications, the diagnosed patients were
promptly initiated on treatment. These
patients are followed up at regular intervals
to prevent, early identification and control
any complications from these diseases
The cancer prevention and control
programme screened around 15,000
individuals for oral, breast and cervical
cancers. Intensive health awareness
sessions are conducted in the communities
and complete support is provided in
referring every individual suspected
of cancer to a higher centre for further
evaluation, confirmation and if needed,
treatment.
177
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. The Community based Preventive Health
Screening programme entails carrying
out door to door screening of people for
prevention and early detection and referral
of diseases like diabetes and hypertension
among adults, anaemia in women of
reproductive age and acute malnutrition
among children under the age of 5. The
Health Outreach programme ensures the
participation of community members
through training of volunteers from the
community to do basic preventive health
screening under supervision and thus
enabling the community to take action for
their health.
Sir H.N. Reliance Foundation Hospital
And Research Centre
Sir H.N .Reliance Foundation Hospital’s
(RFH) clinical care is supported by quality
framework and patient safety practices.
The hospital’s thrust on innovation has led
to accessible and affordable healthcare for
all. RFH’s approach to health care extends
beyond treatment and aims at achieving
the best medical outcomes for all.
Centres of Excellence: Through various
speciality services, RFH remains committed
to providing the best-in-class evidence-
based care at its centres of excellence
– Cardiac Science, Orthopaedics,
Neurosciences, Gastroenterology, Renal
Sciences, Oncosciences. The care delivery is
strengthened by world-class infrastructure.
The patient care ecosystem is supported
by a rehabilitation department, equipped
with operation rooms, critical care
units, emergency medicine department,
preventive health check-up unit, out-
patient clinics and diagnostics. A global
panel of experts brings the international
best practices and expertise to all.
This year, 64 total knee replacements and
81 cataract surgeries were conducted for
poor patients free of charge in addition
to the high-end bone marrow transplant,
renal transplant procedures and
paediatric cardiovascular surgeries.
Advanced Sports Science programme
has been initiated to provide world-class
178
care to help athletes prepare for various
tournaments, including the Olympics.
RFH measures its clinical outcomes
against international benchmarks as part
of its continuous quality improvement
framework that insists on the value of care.
In the domain of surgery, the international
benchmarks are related to length of stay
after surgery, hospital-based infection
rate, percentage of cases re-admitted for
further treatment, etc. RFH outcomes
stand exceptionally high in all these
areas. In the area of patient rehabilitation,
RFH has reported a higher percentage
improvement in patient fitness levels
vis-à-vis the benchmarks in all categories
of rehabilitation - neuro, cardiac and
oncological.
The hospital and blood bank received
NABH Certification and is on its way to
receiving JCI accreditation. RFH received
the green building gold standard and
award from Brihan Mumbai Electricity
Supply and Transport for minimising
energy consumption.
ALLIANCE FOR SAVING MOTHERS AND
NEWBORNS (ASMAN)
Project ASMAN is a partnership between
Reliance Foundation, Tata Trusts, MSD
for Mothers, Bill and Melinda Gates
Foundation and United States Agency for
International Development. It is focused
on strengthening healthcare system for
mothers and new-borns by enhancing
the quality of public health services.
The programme functions as a public-
private partnership with the government.
The programme is currently working in
partnership with the governments of
Rajasthan and Madhya Pradesh. There
are 42 health facilities in 4 districts in the
former and 39 facilities in 4 districts of the
latter. It has touched at least 0.5 million
mothers and new-born infants during the
project cycle.
The initiative focuses on capacity building
of primary care providers in labour rooms
with the help of technological innovations.
It lays special focus on the critical 48-60
hours of the intra and post-partum period.
The primary goal of ASMAN is to reduce
neonatal and maternal mortality through
the adoption of key technologies that
improve capacity-building. A tablet based
Intrapartum Monitoring and Decision
Support Tool has been rolled out in 70
facilities and has registered 66,396 cases
till now. Almost 900 service providers have
been trained on obstetric and new-born
care skills in these states. This initiative
will help in improved adherence to
essential practices; early identification
of complications and its appropriate
management; timely referrals; improved
case monitoring; recording and reporting
for effective decision making. As part
of this initiative, game scenarios have
been developed, which simulate real life
complication cases, testing application of
knowledge and decision-making skills of
the providers.
RF DRISHTI
Reliance, through its RF Drishti programme,
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, 1,153 visually impaired individuals
were supported under the programme
(18,000+ corneal transplants since
inception).
A week-long Drishti Art and Essay
Competition organised every year aims
to increase the awareness about the
importance of eye donation. This year,
nearly 9,000 children participated in it.
Under this programme, an international
Braille newspaper is published every
fortnight, which has a circulation of 3,700.
The newspaper reaches visually impaired
readers across India and the world.
CARE AND SUPPORT FOR HIV AND
TUBERCULOSIS
Reliance has set up hospitals at Lodhivali
(Maharashtra), Jamnagar and Hazira
(Gujarat) providing free and subsidised
healthcare services to underprivileged and
deprived segments. The services range
from general healthcare, communicable
and non-communicable diseases including
REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 HIV and tuberculosis. Additionally, trauma
victims of highway accidents are provided
free treatment. This year over 0.1 million
consultations have been provided with
over 3.1 million consultations provided
since inception.
Care and support treatment are provided
to people living and affected with HIV
(PLHIV), including children and orphans.
The hospitals registered 7,718 PLHIV since
inception, of which 242 were registered this
year. So far, over 0.33 million specialised
health consultations and counselling were
provided to PLHIV. Several awareness
generation activities were conducted
with migrant workers, truck drivers, sex
workers and general population to sensitise
and reduce stigma and discrimination
associated with it. Nutritional support has
been provided to 1,457 children affected
with HIV, besides providing emotional
support. This year, 353 individuals were
screened for tuberculosis, taking the total
screenings to 16,024 since inception. With
continuous follow up and treatment, over
93% of smear positive cases were cured of
the disease.
For the last four years, Reliance has
been organising regional level marriage
bureau function at HIV DOTS Centre in
collaboration with Gujarat State Network of
People Living with HIV/AIDS (GSNP+). These
functions saw participation of 2,737 PLHIV
from states including Gujarat, Rajasthan,
Madhya Pradesh and Maharashtra, of which
63 couples were engaged.
HEALTH SERVICES AT PLANT SITES
Reliance’s health outreach programme also
provides primary health services to the
underprivileged communities across the
plant locations in Andhra Pradesh, Gujarat,
Haryana, Maharashtra, Madhya Pradesh
and Uttar Pradesh through 13 MMUs and
health camps. Through MMUs and camps,
over 3.7 lakh consultations were provided
during the year.
This year, more than 21, 000 women and
adolescent girls were screened for anaemia,
of which nearly 14,900 were found anaemic
and were provided nutritional counselling
and referred for further treatment.
In addition, more than 10,000 children
under the age of five years were screened
for malnutrition of which 189 children were
identified as malnourished this year.
The programme has so far screened over
36,500 cases for improving child nutritional
status and more than 44,500 women and
adolescent girls for anaemia.
At the community level, vision screening
camps and mobile eye clinics are regularly
conducted across the plant locations.
During 2018-19, more than 21,000
consultations were done for vision related
issues, of which 745 cataract surgeries were
done (over 1.24 lakh consultations and
11,230 cataract surgeries since inception).
Over 3,600 individuals (over 11,000
individuals since inception) with refractive
error were provided spectacles.
Education
DHIRUBAI AMBANI SCHOLARSHIP PROGRAMME
In order to nurture talented young leaders,
the Dhirubhai Ambani Scholarship (DAS)
programme has so far provided financial
support to 12,285 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 2018-19, DAS programme
supported 504 students across the country.
During the year, three alumni meets were
held in Mumbai, Bangalore and Vadodara in
which around 100 alumni participated.
CUMULATIVE SCHOLARS UNDER
DAS PROGRAMME
March-19
March-18
March-17
March-16
March-15
“One has to continuously work hard
as someone, somewhere is watching
and will come forward to help you out.
For me it was DAS, that helped me sail
through my hardship.”
CA Pratik Ekhande, Pune
179
11,78111,35810,92110,45712,285Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Prominent achievements of
RF Schools this year
• Students from RF schools won two
international prizes in Skating and
Taekwondo
• 34 accolades and medals at the
national level in events such as
skating, athletics, swimming, Jeet
Kune Do, yoga, Arts and Science
• Students received platinum and gold
certificates of merit at Times Spark,
and five State level accomplishments
in water polo, Tang Soo Do,
swimming, Science and Technology
exhibitions
DHIRUBHAI AMBANI
INTERNATIONAL SCHOOL
Dhirubhai Ambani International School
(DAIS) has been ensuring quality education
for children year after year and prepares
students for the ICSE, the IGCSE and the
IB Diploma examinations. The school is a
member of the Cambridge International
Primary Programme. The school provides
world class education to over 1,050 children
annually and has about 140 teachers
with rich experience in national and
international curricula. The students have
consistently achieved outstanding results
across all the three curricula. In 2018 IGCSE
results, 85.4% of all grades achieved were
A* and A. Three students topped the world
in five subjects and four topped in India in
four subjects. The School’s ICSE average
score was 94.2% and the highest score was
98.6%. In the IB Diploma Examinations,
eight students earned the perfect score
of 45 and the School’s average score was
40 points. The IB Diploma graduates of
2018 earned admissions to 21 of the top 30
universities worldwide. During the
year, students won over 550 awards in
various co-scholastic, sporting and
co-curricular events at the state, national
and international levels.
Over the years, the School has consistently
achieved the highest standards of
excellence in all areas. DAIS is jointly
accredited by the Council of International
Schools and the New England Association
of Schools and Colleges. DAIS is also a
‘Green Building Certified’ School with
‘platinum’ rating from the Indian Green
Building Council. In 2018, Education World
ranked DAIS as the No. 1 International
School in India for the sixth consecutive
year; Hindustan Times ranked DAIS as No.
1 International School in Mumbai, after
having ranked the school as the No. 1
School in Mumbai for five years. Times of
India ranked DAIS as the No. 1 ‘National
and International Curriculum’ School in
Mumbai for the fourth consecutive year
JIO INSTITUTE
Reliance has received a letter of Intent
for setting up Jio Institute under the
‘Institutions of Eminence Deemed to be
Universities Regulation, 2017’ of University
Grant Commission (UGC) under MHRD,
Government of India in July, 2018.
Jio Institute is envisioned to be an
exemplary academic institution of higher
learning with a world class platform for
research, lifelong learning and student
experience. Jio Institute will prepare the
next generation of leaders and significantly
contribute to the advancement of Indian
society.
Jio Institute is currently working on
planning and conceptualising the academic
programme, curriculum, research agenda,
research centre, institutional collaboration
and campus development.
OTHER EDUCATION INITIATIVES
Under Protsahan Scheme in East Godavari
(Andhra Pradesh), scholarships are
provided to meritorious students from
the villages around the plant location.
This year, 218 students were provided
scholarships under the scheme for pursuing
their higher studies 2,081 scholarships have
been provided since inception.
Reliance Foundation collaborated with
Centre for Teacher Accreditation - Teaching
Professionals’ Olympiad. This year, more
than 60,000 teachers from over 10,000
schools across 2,000 locations participated
in the CENTA TPO, India’s national
competition for teachers. Over 1,000
outstanding teachers received awards at
the Reliance Foundation Teacher Awards.
“DAS is a very good programme, that
inspired me becoming a Mechanical Engineer
and an expert in Nano Technology. Let this
platform become a harbinger of new ideas.”
Mr. Sanket Mahajan, MD Sanket
Innovations Pvt. Ltd.,Nashik
RELIANCE FOUNDATION SCHOOLS
Reliance Foundation Schools are
committed to provide an enjoyable and
enriching educational experience to
children. Currently, there are 13 Reliance
Foundation Schools, which are located
in Jamnagar, Surat, Vadodara, Dahej,
Lodhivali, Nagothane, Nagpur and Navi
Mumbai, educating over 14,500 children
annually. The schools offer education
from kindergarten to Class 12 and are
affiliated to CBSE, Gujarat State Board and
Maharashtra State Board.
In the 2018, Class 10 CBSE Board
examinations, the pass percentage of
Reliance Foundation Schools was 98.8%.
In Class 12 CBSE Board examinations,
the pass percentage was 97.8% and
100% in Science and Commerce streams,
respectively. The pass percentage in
Maharashtra State Board examinations
was 100% in Class 10 and 98% and 90% in
Class 12 Science and Commerce streams,
respectively. In the Gujarat State Board
examinations, pass percentage was 91% in
both Class 10 and Class 12 Science stream.
Students of Reliance Foundation Schools
continue to excel in co-scholastic, sporting
and co-curricular pursuits and have
won awards and recognitions in various
events at the district, state, national and
international levels.
180
REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 Sports for Development
Through its various sports programmes,
Reliance aims at bringing about 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
besides promoting health, fitness and
active lifestyle. Reliance partners with
various national and state sports bodies
to improve the quality of the sporting
ecosystem through better facilities,
training, infrastructure and equipment. The
initiatives of Reliance in the field of sports
aims to promote and contribute to the
Khelo India initiative and National Sports
Talent Search Scheme of the government.
These sports initiatives seek to develop
a culture of sports in India. In order to
identify and mentor sports talents, Reliance
reaches out to remote corners of the
country. The talents were identified and
mentored through a rigorous process of
training, coaching and participation in
various tournaments in India and abroad
where they can compete with the best and
develop their talent.
RELIANCE FOUNDATION YOUNG
CHAMPS (RFYC)
RFYC is a unique, scholarship-based,
full-time residential football and education
programme. It aims to provide India’s best
aspiring football talents the opportunity to
hone their skills with world-class facilities
and best-in-class training.
The Young Champs Academy was the first
to achieve four out of a maximum possible
five stars, making it the best residential
football academy in India under the
academy accreditation programme of the
All India Football Federation. Reliance’s
objective is to maintain this position and
also strive towards the cherished milestone
of being the first academy to achieve a
five-star rating.
This year, 19 young football talents were
awarded scholarships to develop their
football skills, taking the total to 61
scholarships across 15 states. Under the
programme, 46 Young Champs went on an
international exposure trip to Spain and
Japan where they got an opportunity to
play friendly matches with international
teams representing elite football clubs.
RELIANCE FOUNDATION JR. NBA
PROGRAMME
The RF Jr NBA programme is aimed at
promoting school based basketball all
over India, with a special focus on training
coaches and providing quality equipment.
In its sixth year, this programme has
reached out to 6 million children across
7,900 schools from 34 cities. All these
schools have adopted and implemented
the training modules prepared by Reliance
Foundation and have integrated basketball
into their school curriculum.
To boost the basketball skills among
schools, the programme conducts
coaching on physical education and skills
development for teachers and children.
Further, the programme refurbished over
10,000 basketball courts.
RELIANCE FOUNDATION YOUTH
SPORTS (RFYS)
Launched in 2016, RFYS programme
conducted competitions across schools
and colleges from more than 70 cities
to discover the untapped talent in the
country. It reached out to over 5.5 million
children, adolescent and youth.
The football tournaments saw participation
from 7,100 teams, including 800 girls’ teams
from over 5,200 institutes. Over 90,000
athletes registered their participation in
these tournaments. Continuing to build
an ecosystem around the sport, the
programme created a digital learning
platform that can be freely accessed by
football enthusiasts to hone their technical
skills. The programme supported 46 best
physical education teachers this year for
‘D-License Coaching Certification’, taking
the total number of trained coaches to 660.
In collaboration with the Association of
Indian Football Coaches, RFYS conducted
the All India Football Federation grassroots
level courses for the 55 best coaches under
the programme.
This year, the programme scaled up
its talent hunt for athletes across 30
cities. It registered over 20,000 athletes
(including 7,000 girls) from 3,500 institutes
participating in various events, including
sprints, relays, short-distance run,
long-distance run, high jump, long
jump and shotput. For enhancing skills
and better sporting performance, the
programme organised a training camp for
37 best athletes of the previous season,
conducted by International Association of
Athletics Federation Level-4 Coaches from
Australia. The camp introduced sports
science to athletics training, which included
mental EQ evaluation. As a result of this,
nine athletes were able to better their
previous national records.
181
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. RELIANCE FOUNDATION EDUCATION
AND SPORTS FOR ALL
Reliance Foundation Education and Sports
for All initiative support the education of
underprivileged children by partnering
with 14 NGOs and working at the grassroots
level. These NGOs focus on encouraging
sports, literacy and life skills among the
children. Under this initiative, a Digital
Learning Van, embedded with technology,
has been providing quality education
to more than 4,000 children from 10
government schools in Mumbai and Thane
districts. Together, these initiatives have
positively impacted 0.2 million children.
National Final Football
Disaster Response
Reliance swiftly and effectively responds
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. In the
process, Reliance collaborates with
different community based organisations
and government departments to prioritise
and provide need based support to affected
communities. During FY 2018-19, the
Company helped communities affected
by floods and cyclones in Andhra Pradesh,
Kerala, Gujarat, Odisha, Uttar Pradesh and
Tamil Nadu.
KERALA FLOOD RELIEF
The Reliance family worked relentlessly to
support the flood affected communities of
Kerala when heavy rains battered the state
in August 2018. Using the digital platform,
early warning messages were provided
to states where the Indian Meteorological
Department had declared a red-alert.
When continuous rainfall brought life to a
standstill and caused widespread damage,
Reliance geared up its team and distributed
relief kits to provide immediate sustenance
to the affected families across 6 districts.
As part of the support, relief materials were
distributed to over 74,000 affected families.
182
Additionally, fodder kits were distributed
and livestock health camps were conducted
to secure over 3,000 animals against
immediate and medium-term health risks
emanating from floods.
As a measure of solidarity with the people
of Kerala, RF Chairperson, Smt. Nita M.
Ambani, visited the relief camp in Allapuzha
district and interacted with the people.
On behalf of Reliance Family, she handed
over a cheque of `21 crore to the Chief
Minister’s Relief Fund.
CONTRIBUTION TO DISASTER
PREPAREDNESS PROGRAMME
In September 2018, Reliance Foundation in
association with INCOIS jointly organised
‘Indian Ocean-wide 18 Tsunami Mock
Exercise’ in the tsunami prone states of
Maharashtra, Gujarat and Odisha. This was
part of a nationwide tsunami mock drill
coordinated by INCOIS that aimed at
preparing fishermen living in these areas,
and training the government departments
to manage tsunami and other disaster
situations. In all the mock drill locations,
RF team members visited and created
awareness among various stakeholders
and coordinated with various players for
conducting the IOWave 18 Tsunami Mock
Exercise.
OTHER INITIATIVES
In addition to Kerala relief efforts, Reliance
also provided support to people affected
in the Gaja Cyclone in Tamil Nadu, Titli
Cyclone in Andhra Pradesh and Odisha, and
floods in Gujarat and Uttar Pradesh.
REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 Arts, Culture and Heritage
Reliance continued to support the annual
concert ‘Abbaji’ organised by Ustad Zakir
Hussain as part of its Arts, Culture and
Heritage initiative. The concert featured
several renowned musicians who came
together to pay tribute to Ustad Zakir
Hussain’s father, the legendary Guru, Ustad
Allah Rakha Khan.
Other Initiatives
CONTRIBUTION TO SWACHH BHARAT
The Reliance family, under the stewardship
of Reliance Foundation initiative, carried
out an extensive ‘Swachhta Hi Seva’
campaign reaching more than 42 lakh
people across 429 locations in the two
week long campaign that ended on October
2, 2018. More than 2 lakh volunteers
(employees, rural and urban community
leaders and groups) supported by Reliance
through various initiatives participated in
various cleanliness activities.
In a mass outreach, Reliance’s digital
services platform broadcasted audio
advisories on Swachhta Hi Seva campaign
to more than 2.8 million individuals across
316 districts in 18 States, focusing on
environment, open defecation diseases,
water and sanitation issues.
SKILLING AND EMPLOYMENT
Through its skilling and employment
programme, Reliance is working towards
making the youth employable by
equipping them with marketable skillsets
and providing placement support. It has
leveraged the power of technology to
link the potential youth for skill training
and employment opportunities. Linkages
have been established with skilling
training institutes for entrepreneurship
development in farm and non-farm
sectors, including agriculture, horticulture,
mushroom cultivation, inland fisheries,
animal husbandry, mobile repairing skills,
etc. This year, over 9,400 youth were linked
to various employment opportunities
across sectors, including retail, banking,
telecom, etc. (over 24,500 recruitments
since inception). The initiative contributes
to Skill India Mission of the Government of
India.
WILDLIFE CONSERVATION AND ANIMAL
WELFARE
Reliance Veterinary Hospital in Padana
attended to more than 15,000 animals
during the year; of these, over 13,000
were given medicinal treatment, surgery
was conducted on 376 animals and 1,298
animals were treated for gynaecology
issues. Apart from conducting various
veterinary camps, an artificial insemination
(A.I.) programme was initiated in August,
2018 under which about 800 A.I. cases were
successfully handled.
For wildlife conservation and animal
welfare, Reliance supported organisations
that work along with communities to
protect wildlife and avoid human-animal
conflict. Under this initiative, 50 volunteers
from villages adjoining the reserves were
trained on camera traps, GPS, plaster
casting of pugmarks and managing
incidents of human-animal conflict.
The initiatives of this year have helped Reliance move closer to its aim of transformative change. Through its policy of direct engagement,
leveraging technology and forging partnerships, Reliance has been able to scale its impact to include a diverse section of the population who
benefit from these efforts. Farmer and fisher folk, women and children, students and budding sporting talents, people in need of health-care
support and citizens faced by natural disasters and many different communities have been positively impacted in FY 2018-19. To expand its
scale, next year, Reliance will further intensify its efforts, especially through digital technology.
183
Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BUSINESS RESPONSIBILITY REPORT
INTRODUCTION
Sustainability at Reliance Industries
Limited (RIL), embraces environmental
and social responsibility while creating
value for its stakeholders. The Business
Responsibility Report (BRR) is one of the
avenues to communicate the Company’s
obligations and performance to all
its stakeholders.
RIL believes in accelerating India’s
transition to a knowledge economy by
focusing on social connect and stakeholder
engagement. To achieve this vision, the
Company strives to create value for India
by elevating the quality of life across the
entire socio-economic spectrum.
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.
In order to provide guidance to businesses
regarding the responsible business
conduct, Ministry of Corporate Affairs
(MCA), Government of India, released
a set of guidelines in 2011 called the
National Voluntary Guidelines on the
Social, Environmental and Economic
Responsibilities of Business (NVGs).
In order to align the NVG’s with the
Sustainable Development Goals, UNGP,
the new principles called the National
Guidelines on Responsible Business
Conduct (NGRBC) were formed in
March 2019. RIL is one of the pioneers to
adopt the NGRBC guidelines.
The Company 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.
Q NVG PRINCIPLES
1 ETHICS, TRANSPARENCY AND
ACCOUNTABILITY
Businesses should conductand govern
themselves with ethics, transparency and
accountability
2 PRODUCT LIFE CYCLE SUSTAINABILITY
Businesses should provide goods and services
that are safe and contribute to sustainability
throughout their life cycle
3 EMPLOYEES’ WELL-BEING
Businesses should promote the wellbeing
of all employees
4 STAKEHOLDER ENGAGEMENT
Businesses should respect the interests of, and be
responsive towards all stakeholders, especially
those who are disadvantaged, vulnerable
and marginalised
5 HUMAN RIGHTS
Businesses should respect and promote
human rights
6 ENVIRONMENT
Businesses should respect, protect, and make
efforts to restore the environment
7 POLICY ADVOCACY
Businesses, when engaged in influencing
public and regulatory policy, should do so in a
responsible manner
8 INCLUSIVE GROWTH
Businesses should support inclusive growth and
equitable development
9 CUSTOMER VALUE
Businesses should engage with and provide
value to their customers and consumers in a
responsible manner
184
Reliance Industries Limited | Integrated Annual Report 2018–19
Annexure 1
Q SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
Disclosures
Corporate Identity Number (CIN) of the Company
Name of the Company
Registered Address
Website
E-mail ID
Information/Reference sections
L17110MH1973PLC019786
Reliance Industries Limited
3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 400 021, India
www.ril.com
investor.relations@ril.com
Disclosures
Financial Year Reported
Information/Reference sections
2018-19
Sector(s) that the Company is engaged in (industrial
activity code-wise):
201
List three key products/services that the Company
manufactures/provides (as in balance sheet):
Total number of locations where business activity is
undertaken by the Company:
Refining, Petrochemicals (Polymers, Polyester and Fibre Intermediates), Exploration
and Production of Oil & Gas and Textiles.
Industrial Group
061
192
Description
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 fibers
Extraction of natural gas
Spinning, weaving and finishing of textile
Manufacture of other textiles
203
062
131
139
As per National Industrial Classification – The Ministry of Statistics and Programme Implementation
Manufactured Capital and Product Stewardship
Page no. 137
RIL has undertaken business activities in eight international locations. The major
locations include North America, South America, Europe, Middle East and Asia. RIL
has carried out business activities in over 50 domestic locations. In addition to serving
Indian markets, RIL exported to 107 countries worldwide as on 31st March, 2019.
Corporate Governance Report
Page no. 229
Q 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
Information/Reference sections
` 6,339 crore as on 31st March, 2019
` 4,00,986 crore as on 31st March, 2019
` 35,163 crore as on 31st March, 2019
*2.09% (`849 crore)
Report on Corporate Social Responsibility
Page No. 171
Q SECTION C: OTHER DETAILS
Disclosures
Participation of subsidiary
companies or any other entities in
RIL’s BR initiatives.
Information/Reference sections
The number of RIL’s subsidiary companies as on 31st March, 2019 was 157 as per details given in Annual 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, Reliance Foundation
Youth Sports and Reliance Foundation Institute of Education & Research. During FY 2018-19,RIL’s operating
subsidiaries and associates such as Reliance Retail Limited, Reliance Corporate IT Park Limited etc. participated in
various initiatives across several areas which includes promotion of Rural livelihoods, Education, Health, Water and
Environment as part of its BR initiatives. RIL also collaborates with relevant external stakeholders like suppliers,
distributors, local communities, government and other entities in the value chain. 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 is more than 60%.
185
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Q SECTION D: BR INFORMATION
Disclosures
Information/Reference sections
1. DETAILS OF DIRECTOR/DIRECTORS RESPONSIBLE FOR BR:
a.
Details of the Director/Directors
responsible for the implementation of the
BR policy/policies
b.
Details of the BR Head
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 (if applicable)
Name
Designation
Telephone Number
Email id
Details
00001620
Shri. Nikhil R. Meswani
Executive Director
022 – 3555 5000
nikhil.meswani@ril.com
2. GOVERNANCE RELATED TO BR
Frequency of assessing BRR performance
The CSR&G Committee assesses the BR performance of the Company annually.
Frequency of publishing a Sustainability Report
and hyperlink for the same
RIL publishes Sustainability Report annually.
http://www.ril.com/Sustainability/CorporateSustainability.aspx
Annexure 2
PRINCIPLE-WISE AS PER NATIONAL VOLUNTARY GUIDELINES (NVGs) BR POLICY/POLICIES (REPLY IN Y/N)
Sl. No. Questions
P6
P7
P4
P5
P1
P3
P2
P8
P9
Do you have policy/policies for...
Has the policy been formulated in consultation with relevant
stakeholders?
Does the policy conform to any national /international standards?
If yes, specify. (The policies are based on NVG-guidelines, in
addition to conformance to the spirit of international standards
like ISO 9000, ISO 14000, OHSAS 18000, UNGC guidelines and ILO
principles)
Has the policy 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?
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
1
2
3
4
5
186
BUSINESS RESPONSIBILITY REPORT (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19
Sl. No. Questions
P1
P2
P3
P4
P5
P6
P7
P8
P9
6
7
8
9
10
Indicate the link to view the policy online?
Has the policy been formally communicated to all relevant
internal and external stakeholders?
Please refer Annexure 3 below 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 also explore other formal channels to
communicate with more relevant stakeholders.
Does the Company have in-house structure to implement its
policy/policies?
Yes, the CSR&G Committee of the Board of Directors is responsible for
the implementation of RIL’s policies.
Does the Company have a grievance redressal mechanism related
to the policy/policies to address stakeholders’ grievances related
to policy/policies?
Yes, any grievance or feedback related to the policies can be sent to in-
vestor.relations@ril.com. CSR&G Committee of the Board of Directors is
responsible for addressing stakeholder concerns related to BR policies.
Has the Company carried out independent audit/
evaluation of the working of this policy by an internal or external
agency?
The BR policy is evaluated internally. Policies pertaining to health,
safety and environment have additionally been audited externally
by DNV.
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
Annexure 3
LINKAGE OF RIL’S POLICIES WITH BR PRINCIPLES AS PER NATIONAL VOLUNTARY GUIDELINES ON SOCIAL,
ENVIRONMENTAL & ECONOMIC RESPONSIBILITIES
Principle
No.
Reference Document
Reference Section
NVG Principle
1
2
3
4
5
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
Section 2, 3, 5 and 7
Customer Value
Section 3
Section 6
Customer Value
Code of Conduct
Values and Behaviours
Our Code
Code of Conduct
Values and Behaviours
Corporate Social Responsibility Policy Section 3
Please refer page no. 187 for web link
Health, Safety & Environment Policy
Section 3, 4, 6 and 8
Code of Conduct
Excellence Value
Values and Behaviours
Section 5 and 6
Code of Conduct
Our Code
Section 5
Corporate Social Responsibility Policy Section 3
Code of Conduct
Our Code
Section 6 and 8
Section 5
187
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Principle
No.
NVG Principle
Reference Document
Reference Section
6
7
8
9
Businesses should respect, protect and make efforts
to restore the environment
Corporate Social Responsibility Policy Section 3
Environment Policy
Please refer page no. 187 for web link
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
Section 5 and 6
Section 5
Please refer page no. 187 for web link
Our Code
Health, Safety & Environment Policy
Corporate Social Responsibility Policy Section 3
Customer Value
Values and Behaviours
Section 2 & 5
Our Code
Code of Conduct
Section 5
Corporate Social Responsibility Policy Section 3
Annexure 4
Q SECTION E: PRINCIPLE WISE PERFORMANCE
Disclosures
PRINCIPLE 1: ETHICS, TRANSPARENCY AND ACCOUNTABILITY
Coverage of Code of Conduct policy
and details of stakeholder complaints
received and resolved in FY 2018-19
Information/Reference sections
Human Capital and People Connect
Page no. 130
Corporate Governance Report Page no. 217-218
For Investor grievances please refer to Corporate Governance Report Page no. 218
PRINCIPLE 2: PRODUCT LIFE CYCLE SUSTAINABILITY
Products or services incorporating
social or environmental concerns
As a global business leader, RIL continuously endeavours to address environmental and social concerns which is
reflected in its business processes and products. Some such products created during FY 2018-19 have been listed below:
a. Safety program to handle Ethylene Oxide: Ethylene Oxide (EO) is a class I flammable liquid. Hence, the EO
business has adopted a 6-point safety program to enhance road safety that comprises facets such as tank
/ valve testing, police verification of drivers, Antilock Braking System (ABS) installation in tankers, Stainless
Steel tank installation and driver training programs. The EO business conducts safety audits of customer
factories before supply as well as frequent follow-ups with customers to implement recommended measures
of safety. Additionally, in line with international practices, the EO business is planning to supply its customers
through pipelines and invites potential customers to setup plants in close proximity to the RIL EO site so as to
decrease risks involved in transportation.
b. Introduction of RELPET IM 5590 product: In India, most of the blood collection tubes required during blood
donation and surgeries are imported. RIL’s PET business introduced RELPET IM 5590 product which is an
important raw material in manufacturing blood collection tubes. To generate widespread awareness about
this, PET business has showcased live production of these tubes at Indiaplast 2019 exhibition for 5 days.
c. Recycling of PET bottles at Reliance SMART stores: RIL’s PET business has undertaken PET bottle recycling
initiative in FY 2018-19. This initiative involved customers to come and deposit empty PET bottles at Reverse
Vending Machines (RVM) installed at Reliance SMART stores, Railway stations and various other locations. To
promote PET recycling more effectively, there is a dispense reward for depositing bottles by way of various
discount coupons. Also, these machines act as Static Advertisement for our brands Recron Green Gold and R|Elan.
Manufactured Capital and Product Stewardship
Page no. 133-134, 137-138
Recycled products and waste
Procedures for sustainable sourcing
and procuring good and services from
small and local vendors
Natural Capital and Climate Change
Page no. 117-118
Social and Relationship Capital
Page no. 154
188
BUSINESS RESPONSIBILITY REPORT (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 Disclosures
PRINCIPLE 3: EMPLOYEES’ WELL-BEING
Total workforce by various indicators
of diversity (e.g. gender, physical
disability, contract labour etc.) and
efforts for their skill enhancement
Information/Reference sections
The total number of employees is 28,967 as on 31st March, 2019. The total number of permanent women
employees is 1,671 as on 31st March, 2019. The total number of permanent employees with disabilities is
61 as on 31st March, 2019.
Health and safety of employees is of paramount importance to RIL, and to create safe workplace,
emphasis is given on health and safety related training programs. During FY 2018-19, RIL imparted 2.02
million man-hours of training to its workforce. 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, 93.49% of its permanent workforce received safety and skill up-gradation trainings. 90.74% of
women employees received trainings through classroom and web-based training programs. Out of 61
permanent employees with disabilities, 30.60% received safety and skill up gradation trainings. RIL
ensures 100% employee participation in safety and mock fire drills.
Workforce representation
and grievance redressal
Human Capital and People Connect
Page no. 122
Human Capital and People Connect
Page no. 130
PRINCIPLE 4: STAKEHOLDER ENGAGEMENT
Identification and engagement with
stakeholders including the vulnerable
and marginalised groups
Report on Corporate Social Responsibility Page no. 170-183
Social and Relationship Capital
Page no. 152 & 155
PRINCIPLE 5: HUMAN RIGHTS
Company’s policy and practices for
addressing human rights concerns
PRINCIPLE 6: ENVIRONMENT
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
Responsible policy advocacy in
collaboration with policymakers
PRINCIPLE 8: INCLUSIVE GROWTH
Details of the Company’s community
development initiatives including
financial contribution and ensuring
long-term sustainability of projects
PRINCIPLE 9: VALUE FOR CUSTOMERS
Ensuring customer satisfaction while
conforming to regulatory requirements
Human capital and People Connect
Page no. 130
Natural Capital and Climate Change
Page no. 114
Board’s report Page no. 255-259
Natural Capital and Climate Change
Page no. 116
Social and Relationship Capital Page no. 154-155
Report on Corporate Social Responsibility Page no. 170-183
Social and Relationship Capital
Board’s Report Page no. 249-252
In FY 2018-19, RIL has spent ` 849 crore on community development initiatives.
Page no. 155
Social and Relationship Capital
Page no. 154
As on 31st March 2019, 1,732 customer complaints were received of which 1,695 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.
189
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Annexure 5
Q SECTION A: GENERAL DISCLOSURES
Disclosures
Company Details
Information/Reference sections
Year of registration: 1973
Employees
Percentage of women:
i. On the Governance Structure: 14%
a) Names of subsidiary / associate companies: 157 / 8. For more details, please refer Annexure A on page no. 433-439
b) Details of Trust/Society/Section 8 company to further its CSR agenda:
i. Names: Reliance Foundation, Reliance Foundation Youth Sports and Reliance Foundation Institution of Education and
Research
Associate entities
2016 and 2017 respectively under Section 8 of the Companies Act, 2013
ii. Organisation form (Trust, Society, Company) and year of establishment: Not-for-profit companies established in 2010,
iii. Main objects/purpose: To create and support meaningful and innovative activities that address some of India’s most
pressing development challenges, with the aim of enabling lives, living and livelihood for a stronger and inclusive India
iv. Amounts and sources of funds received in the reporting year: `904 crore were spent towards CSR activities, of the total
expenditure, `849 crore is from RIL and the rest is from the Group Companies.
Q SECTION B: MANAGEMENT AND PROCESS DISCLOSURES
Disclosure Questions
P1
P2
P3
P4
P5
P6
P7
P8
P9
POLICY AND MANAGEMENT PROCESSES
1
Names of the policy / policies that covers each Principle
2
3
4
5
Core Elements related to the Principle that the policy/
policies cover
Policy/ policies relating to each principle that has been
translated into guidelines and procedures
Extent to which manpower, planning and financial
resources have been allocated for the implementation of
the policy/ policies relating to each Principle
National and International codes and standards adopted
mapped to various Principles
GOVERNANCE, LEADERSHIP AND OVERSIGHT
6
7
8
9
Names of the above policies that have been approved by
the Board/top management
Name of the specified committee(s) of the Board/
Director/Officer and processes to oversee the
implementation of the policy/ policies
The process for board/ top management to review
performance against the above policies and incorporating
inputs
Process for board/ top management to review compliance
with statutory requirements of relevance to the Principles
and rectify any non-compliances
10 Frequency of the reviews of the business’s alignment with
the Principles and Core Elements conducted by the board/
top management
Please refer the links of the policies on Page no. 187 which cover each principle
stated in National Guidelines on Responsible Business Conduct
All the core elements stated as part of the Principles are covered in the policies.
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
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
All the policies are approved by the Chairman and specific Board committees.
CSR&G Committee of the Board of Directors is responsible for the implementation
of RIL’s policies
Corporate Social Responsibility and Governance (CSR&G) committee oversees
the sustainability performance on a continuous basis. The committee reviews
the policies and practices developed in line with the sustainability strategy. The
annual performance against the policies is reviewed by the Board committee and
specific action points are recommended to enhance sustainable performance.
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 to review various statutes, such as industrial and labour laws, taxation laws,
corporate and securities laws and health, safety and environmental laws.
The CSR&G Committee reviews the business alignment with the principles and
core elements annually.
190
BUSINESS RESPONSIBILITY REPORT (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 Disclosure Questions
STAKEHOLDER ENGAGEMENT
P1
P2
P3
P4
P5
P6
P7
P8
P9
11 Description of the process to identify your business’ key
stakeholders
RIL has identified eight internal and external stakeholder groups: Employees,
Government and Regulatory Authorities, Customers, Local Communities,
Suppliers, Trade Unions, Shareholders, and NGOs.
12 Description of the process to engage with your
stakeholders on the Principles
13 Description of the processes to identify groups that are
vulnerable and marginalised stakeholders
14 Description of the processes to identify issues related
to inclusion and impact of adopting the Principles on
vulnerable and marginalised stakeholders.
COMMUNICATIONS
15 Description of process to communicate to stakeholders,
the impact of your policies, procedures, decisions and
performance that impact them (100 words)
RIL aims to build strong and long-lasting relationships with their stakeholders through
structured dialogues. The Company weaves stakeholder engagement throughout
the sustainability reporting process, and the organisation continuously engages the
stakeholders as it relates to its business needs and to understand their priorities.
Reliance has been working for education, health and wellbeing of marginalised
sections of the society. To identify the vulnerable and marginalised stakeholders
within the identified focus areas, several methodologies were adopted such as
desk research for situational analysis, participatory rural appraisal, community
need assessment and focus group discussion with the stakeholders. These
methods helps in prioritising the community level interventions that would
contribute to the overall development goals of the country.
RIL’s CSR policy outlines its commitment towards improving the lives of India’s
most marginal and vulnerable communities. The development initiatives have
systematically analysed and identified the population who are catering to the
marginal and vulnerable criteria.
RIL aims to build strong relationships with its stakeholders and communicate the
impacts of the Company’s policies, procedures through various medium like Supplier
meets, Customer meets, community meetings, Annual General Meetings, workshops,
intranet and regular updates.
16 Description of how the business communicates the results
of stakeholder engagement in the public domain
The performance against the Guidelines is communicated to the stakeholder
through stakeholder interactions, Business responsibility report, Annual report
and Sustainability Report.
17 Description of the process of communicating performance
against these Guidelines to relevant stakeholders
18 Note on how disclosures and reporting helped in
improving business performance / strategy
RIL believes in listening to the viewpoints of its stakeholders and addressing them
on priority. The Company values the inputs received from the engagement process
and these engagements help to identify material aspects. The progress on the
material aspects are communicated in Annual report, Business Responsibility
Report, Sustainability Report and on websites at periodic intervals. The stakeholder
engagement process and outcomes are mentioned as a part of Sustainability report.
Sustainability reporting and Business responsibility reporting measure,
understand and communicate the Company’s economic, environmental, social
and governance performance, and then set goals, which helps create positive
impact on the society and manage change more effectively.
191
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Q SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
Disclosures
Information/Reference sections
PRINCIPLE 1: INTEGRITY, ETHICS, TRANSPARENCY, ACCOUNTABILITY
Essential
Indicators
Review of performance by
top management against the
principles and core elements
Awareness programs and
complaints received across the
Principles and Core Elements of
the Guidelines
Leadership
Indicators
Describe the reporting mechanism
of responsible business practices
Percentage of stakeholders
covered by social and
environmental audits
The Company has constituted a Corporate Social Responsibility and Governance Committee
which assists the Board in formulating and monitoring the implementation of sustainability and
overall governance regarding social responsibility.
The Committee also oversees the implementation of policies mentioned in the Business
responsibility manual covering the principles and core elements of the Guidelines. The Committee
reviews the business responsibility report and recommends the Board for the approval.
The Company aims to follow and promote sustainable business practices and continuously
strives to create awareness among all the stakeholders. The leadership team was informed
regarding the new principles released, called the National Guidelines on Responsible Business
Conduct (NGRBC).
Corporate Governance Report Page no. 223
Board’s Report Page no. 243-244
RIL has developed its Annual 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. The Sustainability disclosures in Annual report are assured using reasonable
assurance criteria as per ISAE 3000 (Revised) Standards. The assurance statement provided by KPMG
India is available in the ‘Independent Assurance Statement’ section of the Integrated Annual report and
Sustainability report.
A large number of RIL’s suppliers are multi-national OEMs. The Company has observed that all these
companies regularly publish sustainability performance and are quite advanced in the sustainability
curve. RIL requires its smaller scale suppliers, to ensure they implement environmental as well as
health and safety initiatives to make their operations green as well as safe. The Company also ensures
that they are compliant to all regulatory requirements and review their performance on a regular basis.
This helps the Company to ensure continuity of its suppliers’ businesses and thereby its own business
as well.
Social and Relationship Capital
Independent Reasonable Assurance Statement Page no. 204-205
Sustainability Report 2017-18 Page no. 170-173
Page no. 152 & 154-55
PRINCIPLE 2: SAFE AND SUSTAINABLE GOODS AND SERVICES
Essential
Indicators
Details of investment in specific
technologies along with
percentage of input material and
services sourced from suppliers
adhering sustainability standards.
1. Hydrofluoric Acid (HF) Replacement in Linear Alkyl Benzene (LAB) process: Development of a
Reliance proprietary catalyst and process to replace hydrofluoric acid (HF) in the manufacture
of linear alkyl benzene (LAB) for use in detergents
2. R-Cat HTL: Development of catalytic hydrothermal liquefaction technology for converting wet
waste to wealth
3. Waste Plastic to Oil: Development of process for waste plastic conversion to oil
4. Energy efficient technology Refer Annexure V of the Board’s Report Page no. 253-254
5. Refinery Off Gas Cracker: World’s first ever and largest Refinery off Gas Cracker complex
of 1.5 MMTPA capacity
6. PET Bottle Recycling Plant: Recycling 2 billion PET bottles annually with total recycling
capacity of 60 KTA.
7. Plastics to road pilots are underway with a total investment of ` 10 crore
Natural Capital and Climate Change
Social and Relationship Capital
Page no. 154
Page no. 114
192
BUSINESS RESPONSIBILITY REPORT (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 Leadership
Indicators
Disclosures
Communication of impacts to
various stakeholder groups and
examples on how the feedback
received from stakeholders is used
for improvements
Information/Reference sections
RIL continues to collaborate and emphasises on maintaining long term association with its
stakeholders.
E.g.
1. RIL encourages the local vendors for indigenisation. To gain significant cost and quality
advantage, the Company emphasises on supplier collaboration.
2. Mission Kurukshetra is a step towards democratising creativity and innovation within the
organisation. Through the Mission Kurukshetra platform, the employees can submit ideas and
track their progress right up to implementation.
Human Capital and People Connect
Social and Relationship Capital
Page no. 152
Page no. 130-131
PRINCIPLE 3: WELL-BEING OF EMPLOYEES
Essential
Indicators
Number of cases/complaints
against child labour, forced labour,
discrimination
Work life balance topics which are
implemented
Leadership
Indicators
Human Capital and People Connect
Business Responsibility Report Annexure 4 Page no. 189
Page no. 131
Human Capital and People Connect
Page no. 129
PRINCIPLE 4: RESPECT AND RESPONSIVENESS TO ALL STAKEHOLDERS
Essential
Indicators
Social and Relationship Capital
Sustainability Report 2017-18 Page no. 38-41
Page no. 152
Leadership
Indicators
Report on Corporate Social Responsibility Page no. 170-183
Identification of stakeholders,
functions responsible to interact
with them, details on formal
engagement with them on
environment and social issues
Incorporation of inputs from
stakeholders
Examples of decisions and actions
taken by the business to address
the interests of vulnerable/
marginalised groups
PRINCIPLE 5: RESPECT AND PROMOTE HUMAN RIGHTS
Essential
Stakeholder groups governed
Indicators
by the grievance committee for
human rights issues
Coverage of Employee categories
by the human rights policies
Human Capital and People Connect
Business Responsibility Report Annexure 4 Page no. 189
Page no. 130
Leadership
Indicators
Percentage of contractual
employees and value chain
partners trained on human rights
aspect
The Company requires its suppliers to comply fully with all legal requirements regarding labour
practices and human rights, including freedom of association and collective bargaining. There is
a robust mechanism in place to monitor the performance of the significant suppliers, especially
with respect to their performance against the Company’s Supplier Code of Conduct. The Company
prohibits child, forced or compulsory labour in any of its operations and also ensure the same is
followed across its supply chain.
Social and Relationship Capital
Page no. 154
PRINCIPLE 6: RESPECT, PROTECT AND RESTORE THE ENVIRONMENT
Essential
Indicators
Good practices in reduction,
recycling, and reuse initiatives
that contributed to lowering the
adverse environmental footprint
1. PET bottles which are non-biodegradable in nature, after disposal, lead to environmental
degradation. Recron Green Gold Polyester Staple Fiber is produced by a highly eco-friendly
process; apart from being made from 100% recycled PET bottles, it also uses 90% recycled
water
2. To add value to refinery elemental sulphur a new product was developed RelFarmS as soil
nutrient to enhance crop yield and converting sodic soil to cultivable soil.
3. Adopting advanced technologies for water treatment, such as reverse osmosis and ultra-
filtration, the requirement for freshwater in cooling towers was replaced with recycled water.
Business Responsibility Report Annexure 4 Page no. 189
193
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Leadership
Indicators
Disclosures
Good practices cited in reduction,
recycling, and reuse initiatives
benchmarked against industry
best practice
Information/Reference sections
Natural Capital and Climate Change
Page no. 114-118
PRINCIPLE 7: RESPONSIBLE AND TRANSPARENT POLICY ADVOCACY
Essential
Indicators
Social and Relationship Capital
Review public policy advocacy
positions by the governance
structure for consistency with the
Principle
Page no. 154-155
Leadership
Indicators
The public policy positions
available in the public domain.
Examples (up to three) of any
policy changes in the past year as
a result of your advocacy efforts
Social and Relationship Capital
Business Responsibility Report Annexure 4 Principle 7 Page no. 189
Page no. 154-155
PRINCIPLE 8: PROMOTE INCLUSIVE GROWTH AND EQUITABLE DEVELOPMENT
Essential
Indicators
Social and Relationship Capital
Report on Corporate Social Responsibility Page no. 170-183
Page no. 154-155
Social impact assessments of your
business operations and details of
investments (top three by value) in
regions which are underdeveloped
Impact of your community
initiatives contribute to local and
national development
Leadership
Indicators
Leadership
Indicators
PRINCIPLE 9: PROVIDE VALUE TO CONSUMER RESPONSIBLY
Essential
Number of complaints in respect
Indicators
to data privacy, advertising,
delivery of essential services
List of national-international
product labels / certifications
being used by the business
Steps taken to inform and educate
vulnerable and marginalised
consumers about safe and
responsible usage of products
Social and Relationship Capital
Report on Corporate Social Responsibility Page no. 170-183
Page no. 154-155
Business Responsibility Report Annexure 4 Page no. 189
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
pellets to finished 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.
Management and staff at the Company’s facilities, assets and functions identify and manage risk,
promoting safe, compliant and reliable operations. The Company is committed towards customer
safety through its business operations. We review the environmental, health and safety impacts of
our products continuously to ensure that they do not pose any risks to people and environment. The
company ensure uniformly high standard for product stewardship complying with all health and safety
regulatory mandates and go beyond regulatory legal requirements.
LINKAGE OF UNITED NATIONS’ SUSTAINABLE DEVELOPMENT GOALS (SDGS) WITH BUSINESS RESPONSIBILITY
REPORT, MANAGEMENT’S DISCUSSION AND ANALYSIS, CORPORATE SOCIAL RESPONSIBILITY REPORT AND
ILLUSTRATIONS
Sustainable
Development
Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
References of illustrations
Social and
Relationship
Capital
• Enhancing livelihood and
income among fishermen
and rural farmers
• Skilling and employment
• Village Leaders Appreciated (Page no. 173)
• Diversity, Equity and Inclusion - Employment,
Engagement and Empowerment (Page no. 89)
PRINCIPLE
3 Employees’
Well-being
4 Stakeholder
Engagement
8 Inclusive
Growth
End poverty
in all its forms
everywhere
194
BUSINESS RESPONSIBILITY REPORT (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19
Sustainable
Development
Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
References of illustrations
End hunger,
achieve food
security and
improved
nutrition
and promote
sustainable
agriculture
PRINCIPLE
2 Product
Life Cycle
Sustainability
6 Environmental
Management
7 Policy
Advocacy
8 Inclusive
Growth
9 Value for
Customers
PRINCIPLE
3 Employees’
Well-being
Ensure healthy
lives and
promote well-
being for all at all
ages
6 Environmental
Management
8 Inclusive
Growth
• Stress tolerant crop varieties and sustainable agricultural
practices (Page no. 176)
Social and
Relationship
Capital
•
Improved food and
nutrition security
• Market linkages for
agricultural produce
• Ensuring water security
• Sustainable agricultural
production
• Employee social responsibility -
Medical camp (Page no. 79)
• Employee social responsibility -
Improved child health (Page no. 79)
• Affordable devices and digital education (Page no. 99)
• Superior healthcare (Page no. 98)
Human
Capital
and People
Connect
• Primary and preventive
health care services
to underprivileged
communities
Improved care and support
for the people affected by
HIV and Tuberculosis
•
• Saving lives of mothers and
newborns
• Providing eye-care services
•
for underprivileged
communities
Improved availability and
accessibility of healthcare
services
• Effective management
of non-communicable
diseases
195
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable
Development
Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
References of illustrations
PRINCIPLE
• Education and sports for
• Employee social responsibility
Promoting education in rural areas (Page no. 79)
• Jio Apps and smart education (Page no. 98)
3 Employees’
Well-being
8 Inclusive
Growth
9 Value for
Customers
Human
Capital
and People
Connect
Social and
Relationship
Capital
•
development
• Enhanced quality
of education for
underprivileged
Providing education
support to students from
poorer socio-economic
background
Skill development
for better education
opportunities
•
Human
Capital
and People
Connect
• Women empowerment
• Skilling of women for
enhanced livelihood
opportunities
• R-Aadya – a symbol of women
empowerment (Page no. 124)
• Diversity, Equity and Inclusion -
Employment (Page no. 89)
• Participation of women
• Diversity, Equity and Inclusion -
in village decision making
body
Engagement (Page no. 89)
• Diversity, Equity and Inclusion -
Empowerment (Page no. 89)
Societal values - Gender Equality (Page no. 29)
•
• Jio Apps and smart education (Page no. 98)
• JioPhone empowering women in rural India (Page no. 33)
• Employee social responsibility -
Women Empowerment (Page no. 79)
• Saksham – appreciating PwD employees (Page no. 125)
• Water - Changing village landscape (Page no. 175)
Ensure inclusive
and equitable
quality
Protsaham
scheme
education
and promote
lifelong learning
opportunities
for all
Achieve gender
equality and
empower all
women and girls
PRINCIPLE
3 Employees’
Well-being
4 Stakeholder
Engagement
5 Human
Rights
8 Inclusive
Growth
PRINCIPLE
2 Product
Life Cycle
Sustainability
6 Environmental
Management
8 Inclusive
Growth
Natural
Capital and
Climate
Change
Social and
Relationship
Capital
Ensure
availability and
sustainable
management
of water and
sanitation for all
• Water security
•
Conservation of water
through construction of
water harvesting structures
• Contribution to Swachh
Bharat Abhiyan
• Construction of toilets
196
BUSINESS RESPONSIBILITY REPORT (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 Sustainable
Development
Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
References of illustrations
• Researching Carbon Capture Storage and Use at
Jamnagar (Page no. 116)
• Ecological balance
• Linkages with Ujjwala
scheme
• Bio gas
• Solar micro-grid
Natural
Capital and
Climate
Change
Manufactured
Capital and
Product
Stewardship
Intellectual
Capital and
Innovation
Financial
Capital and
Credit Rating
Human
Capital
and People
Connect
PRINCIPLE
2 Product
Life Cycle
Sustainability
6 Environmental
Management
7 Policy
Advocacy
PRINCIPLE
2 Product
Life Cycle
Sustainability
3 Employees’
Well-being
5 Human
Rights
8 Inclusive
Growth
PRINCIPLE
3 Employees’
Well-being
4 Stakeholder
Engagement
6 Environmental
Management
8 Inclusive
Growth
Ensure access
to affordable,
reliable,
sustainable and
modern energy
for all
Promote
sustained,
inclusive and
sustainable
economic
growth, full
and productive
employment
and decent work
for all
Build resilient
infrastructure,
promote
sustainable
industrialisation
and foster
innovation
• Providing alternative
livelihood and
entrepreneurship
opportunities
• Leveraging knowledge
and Skill development for
youth
Manufactured
Capital and
Product
Stewardship
• Access to information
through information
services program.
Improving access to social
infrastructure
•
Intellectual
Capital and
Innovation
Social and
Relationship
Capital
• Societal values - Decent work and
economic growth (Page no. 29)
• Karm Yogi Awas – State-of-the-art residential
infrastructure for construction employees (Page no. 128)
• The Ultimate Pitch – Engaging India’s
talented youth (Page no. 124)
• Learnet (Page no. 126)
• Lynda.com (Page no. 126)
• Emerging Technologies - Computer Vision and
Machine Learning (Page no. 135)
Improved business results (Page no. 99)
•
• Enhancing the livelihoods of fishermen (Page no. 175)
• Emerging Technologies - Robotics process and
automation (Page no. 135)
• Emerging Technologies - Smart contract (Page no. 135)
•
Impacting Customers with a difference -
Digital Ecosystem (Page no. 60)
Impacting Customers with a difference -
Reinforce customer trust (Page no. 60)
Impacting Customers with a difference -
Increase in customer engagement (Page no. 60)
•
•
• Effective use of thermal imaging camera for real time
detection of minor/major gas leaks (Page no. 25)
• Flare stack inspection with drones at KGD-6 onshore
terminal (Page no. 77)
Innovation in interactive content (Page no. 107)
•
• The ecosystem created by Digital Services (Page no. 119)
• Creating value from waste -
Societal intervention (Page no. 117)
• Artificial Intelligence for grading and quality monitoring
of Agri commodity (Page no. 153)
197
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable
Development
Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
References of illustrations
PRINCIPLE
2 Product
Life Cycle
Sustainability
Human
Capital
and People
Connect
• Author Hunt – celebrating diversity
through employee stories (Page no. 124)
• Women empowerment
• Education and
empowerment for the
underprivileged and
specially-abled
• Technology driven
education platform
Social and
Relationship
Capital
•
Infrastructure development
in rural and urban areas
• Creating value from waste - Business operations,
Customer outreach, Societal Intervention (Page no. 117)
• Reliance’s Fashion For Earth launched the ‘Circular
Design Challenge’ at Lakme Fashion Week with the UN
Environment (Page no. 71)
• Societal values - Responsible Consumption and
Production (Page no. 29)
• Catalysing waste reduction, increasing sustainability in
fashion (Page no. 23)
• Tree plantation
• Energy conservation
• Sustainable production
Manufactured
Capital and
Product
Stewardship
• Propane – Surging Growth Story (Page no. 19)
• Better farm productivity (Page no. 98)
•
Impact of employee training on
Product loss reduction (Page no. 128)
Gaining competitive advantage through liquid phase
isomerisation (Page no. 137)
•
5 Human
Rights
6 Environmental
Management
7 Policy
Advocacy
PRINCIPLE
3 Employees’
Well-being
4 Stakeholder
Engagement
7 Policy
Advocacy
8 Inclusive
Growth
9 Value for
Customers
PRINCIPLE
2 Product
Life Cycle
Sustainability
6 Environmental
Management
9 Value for
Customers
Reduce
inequality within
and among
countries
Make cities
and human
settlement
inclusive, safe,
resilient and
sustainable
Ensure
sustainable
consumption
and production
patterns
198
BUSINESS RESPONSIBILITY REPORT (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 Sustainable
Development
Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
References of illustrations
Natural
Capital and
Climate
Change
• Disaster risk mitigation
plans in consultation with
communities to combat
the major natural disasters
climatic events such as
cyclones
• Timely relief and
rehabilitation to
communities affected by
natural calamities
• Providing prompt relief during disaster (Page no. 33)
• Researching Carbon Capture Storage and Use at
Jamnagar (Page no. 116)
• Contribution to disaster preparedness
programme (Page no. 182)
• Vapour Recovery System (VRS) roll out at all petro retail
outlets (Page no. 58)
•
Information dissemination
on potential fishing zone
• Awareness to fishermen
about sustainable fishing
Natural
Capital and
Climate
Change
• Water - Changing village landscape (Page no. 175)
• Employee social responsibility -
Green Cover (Page no. 79)
• Reliance’s Fashion For Earth launched the ‘Circular
Design Challenge’ at Lakme Fashion Week with the UN
Environment (Page no. 71)
Natural
Capital and
Climate
Change
• Soil conservation
• Tree plantation
• Enhancement of
biodiversity
• Wildlife conservation and
animal welfare
• Sustainable Agriculture
Practices
• Soil health and
bio-fertilisers promotion
PRINCIPLE
2 Product
Life Cycle
Sustainability
6 Environmental
Management
7 Policy
Advocacy
8 Inclusive
Growth
PRINCIPLE
2 Product
Life Cycle
Sustainability
6 Environmental
Management
7 Policy
Advocacy
8 Inclusive
Growth
9 Value for
Customers
PRINCIPLE
2 Product
Life Cycle
Sustainability
6 Environmental
Management
7 Policy
Advocacy
8 Inclusive
Growth
9 Value for
Customers
Take urgent
actions to
combat climate
original design
change and its
impacts
Conserve and
sustainably
use the oceans,
seas and marine
resources for
sustainable
development
Protect, restore
and promote
sustainable use
of terrestrial
ecosystems,
sustainably
manage
forests, combat
desertification,
and halt and
reverse land
degradation and
halt biodiversity
loss
199
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sustainable
Development
Goal
Business
Responsibility
Report
Management
Disclosure &
Analysis
Corporate Social
Responsibility
References of illustrations
PRINCIPLE
• Formation of village
• Water - Changing village landscape (Page no. 175)
Social and
Relationship
Capital
associations and farmer
producer companies for
sustainable livelihood
• Women empowerment by
forming thrift groups
• Supporting gram
panchayat for economic
development
Social and
Relationship
Capital
• Partnership with
likeminded organisations
including government
and non-government
organisation, technical
agencies, etc.
• Lynda.com (Page no. 126)
• Emerging Technologies - Industrial Internet of
Things (IIOT) (Page no. 135)
• Societal values - Responsible Consumption and
Production (Page no. 29)
1 Ethics,
Transparency
and
Accountability
3 Employee
Well-being
4 Stakeholder
Engagement
5 Human
Rights
7 Policy
Advocacy
8 Inclusive
Growth
PRINCIPLE
1 Ethics,
Transparency
and
Accountability
7 Policy
Advocacy
8 Inclusive
Growth
Promote
peaceful and
inclusive
societies for
sustainable
development,
provide access to
justice for all and
build effective,
accountable
and inclusive
institutions at all
levels
Strengthen
the means of
implementation
and revitalise
the global
partnership
for sustainable
development
200
BUSINESS RESPONSIBILITY REPORT (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 Q 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 Disclousre
Organisational Profile
Strategy
Ethics and Integrity
Governance
Stakeholder Engagement
Reporting Practice
MATERIAL TOPIC
HEALTH AND SAFETY
Location of Disclosure & Page Number
Reliance at glance (Page 2)
Business Model: Integrated Reporting (Page 14-15)
Strategy (Page 110)
Human Capital and People Connect (Page 130)
Corporate Governace Report (Page 206)
Social and Relationship Capital (Page 152)
Reliance’s Sustainability Reporting Journey (Page 158)
Corporate Governace Report (Page 208)
GRI 103: Management Approach 2016
GRI 403: Occupational health and safety 2016
Human Capital and People Connect (Page 130)
Human Capital and People Connect (Page 130)
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 307: Environmental Compliance 2016
WASTE MANAGEMENT
GRI 103: Management Approach 2016
GRI 306: Effluents and waste 2016
WATER MANAGEMENT
GRI 103: Management Approach 2016
GRI 303: Water 2016
ECOSYSTEMS AND BIODIVERSITY
GRI 103: Management Approach 2016
GRI 304: Biodiversity 2016
Natural Capital and Climate Change (Page 118)
Natural Capital and Climate Change (Page 118)
Natural Capital and Climate Change (Page 118)
Natural Capital and Climate Change (Page 114)
Natural Capital and Climate Change (Page 115)
Natural Capital and Climate Change (Page 117-118)
Natural Capital and Climate Change (Page 116)
Natural Capital and Climate Change (Page 116)
Natural Capital and Climate Change (Page 114)
Natural Capital and Climate Change (Page 117-118)
Natural Capital and Climate Change (Page 114)
Natural Capital and Climate Change (Page 116)
Natural Capital and Climate Change (Page 118)
Natural Capital and Climate Change (Page 118)
201
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. GRI Standard
Location of Disclosure & Page Number
ENERGY EFFICIENCY OF OPERATIONS & CARBON ABATEMENT AND OFFSETTING
GRI 103: Management Approach 2016
GRI 302: Energy 2016
GRI 305: Emissions 2016
RENEWABLE AND ALTERNATIVE ENERGY
GRI 103: Management Approach 2016
GRI 302: Energy 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
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 404: Training and Education 2016
LABOUR MANAGEMENT
GRI 103: Management Approach 2016
GRI 402: Labor/Management Relations 2016
202
Natural Capital and Climate Change (Page 115)
Natural Capital and Climate Change (Page 115)
Board’s Report Annexure V (Page 255)
Natural Capital and Climate Change (Page 115)
Natural Capital and Climate Change (Page 115)
Natural Capital and Climate Change (Page 115)
Board’s Report Annexure V (Page 255)
Social and Relationship Capital (Page 154)
Social and Relationship Capital (Page 154)
Social and Relationship Capital (Page 154)
Social and Relationship Capital (Page 154)
Social and Relationship Capital (Page 154)
Human Capital and People Connect (Page 130
Social and Relationship Capital (Page 154)
Human Capital and People Connect (Page 130)
Social and Relationship Capital (Page 154)
Human Capital and People Connect (Page 130)
Social and Relationship Capital (Page 154)
Social and Relationship Capital (Page 154)
Report on Corporate Social Responsibility (Page 170-183)
Social and Relationship Capital (Page 158)
Report on Corporate Social Responsibility (Page 170-183)
Social and Relationship Capital (Page 155)
Report on Corporate Social Responsibility (Page 170-183)
Human Capital and People Connect (Page 130)
Human Capital and People Connect (Page 130)
Human Capital and People Connect (Page 130)
Board’s Report Annexure III (Page 249-252)
Human Capital and People Connect (Page 122)
Human Capital and People Connect (Page 122)
Human Capital and People Connect (Page 125)
Human Capital and People Connect (Page 125)
Human Capital and People Connect (Page 125)
BUSINESS RESPONSIBILITY REPORT (CONTD) Reliance Industries Limited | Integrated Annual Report 2018–19 GRI Standard
Location of Disclosure & Page Number
EMPLOYEE DIVERSITY
GRI 103: Management Approach 2016
GRI 405: Diversity and Equal opportunity 2016
ECONOMIC PERFORMANCE
GRI 103: Management Approach 2016
GRI 201: Economic Performance 2016
Human Capital and People Connect (Page 123)
Human Capital and People Connect (Page 123)
Financial Capital and Credit Rating (Page 148)
Financial Highlights (Page 46)
Financial Capital and Credit Rating (Page 148-149)
Financial Highlights (Page 46)
ASSET UTILISATION AND RELIABLE OPERATIONS*
GRI 103: Management Approach 2016
Intellectual Capital and Innovation (Page 140-147)
SECURITY AND ASSET PROTECTION*
GRI 103: Management Approach 2016
DIGITAL INCLUSION*
Manufactured Capital and Product Stewardship (Page 132-139)
GRI 103: Management Approach 2016
Manufactured Capital and Product Stewardship (Page 136)
MANAGING SYSTEMIC RISKS FROM TECHNOLOGY DISRUPTIONS*
GRI 103: Management Approach 2016
Manufactured Capital and Product Stewardship (Page 132-139)
DATA PRIVACY AND SECURITY*
GRI 103: Management Approach 2016
* Non GRI aspect
Manufactured Capital and Product Stewardship (Page 136-137)
Enterprise Risk Management (Page 164)
203
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. INDEPENDENT REASONABLE ASSURANCE STATEMENT
to Reliance Industries Limited on their Sustainability Disclosures in the
Integrated Annual Report for Financial Year 2018-19
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 selected Sustainability
disclosures presented in the Integrated
Annual Report (‘the Report’) of Reliance
Industries Limited (‘RIL’ or ‘the Company’)
for FY 2018-19. 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 National Guidelines on
Responsible Business Conduct (NGRBC),
Task Force on Climate-related Financial
204
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
and Human Capital Protocol, 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, 2018 to 31st March, 2019.
• The assurance process was limited to
the selected sustainability disclosures
at relevant sections in the annual
integrated 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 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.
• Evaluating the appropriateness of the
quantification methods used to arrive at
the sustainability disclosures presented
in the Report.
• Verification of systems and procedures
used for quantification, collation, and
analysis of sustainability disclosures
included in the Report.
• Understanding the appropriateness of
various assumptions, estimations and
Reliance Industries Limited | Integrated Annual Report 2018–19 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 2018-19.
• 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.
• The sustainability disclosures as
defined under scope of assurance are in
alignment with the GRI standards.
• The company has also referred to
other reporting criteria and emerging
frameworks as mentioned under
reporting criteria.
• We have provided our observations to
the Company in a separate management
letter. These, do not, however, affect our
conclusions regarding the Report.
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) 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.
Santhosh Jayaram
Partner
KPMG India
July 02, 2019
205
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. CORPORATE GOVERNANCE REPORT
“Between my past, the present and the future, there is one
common factor: Relationship and Trust. This is the foundation of
our growth.”
Founder Chairman
Shri Dhirubhai H. Ambani
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 focussed 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 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,
K. Sethuraman
Savithri Parekh
“Our constant endeavour
is to strengthen Corporate
Governance, with the ultimate
objective of maintaining a
balance between economic
and social goals. We have put
strong governance framework in
place to align with the interests
of individuals, corporations
and society.”
206
Reliance Industries Limited | Integrated Annual Report 2018–19 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 over 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 23.6%, Earnings Before
Interest Tax Depreciation and Amortisation
(EBITDA) 25.1% and Net Profit 25.7%.
The financial markets have endorsed
our sterling performance and the market
capitalisation has increased by CAGR of
31.9% 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 2.2 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
relating to 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.
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 and Our Code
• 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 Directors’ independence
• Remuneration Policy for Directors,
Key Managerial Personnel and other
employees
• Policy for determining Material
Subsidiaries
• Code of Practices and Procedures for
Fair Disclosure of Unpublished Price
Sensitive Information
• Policy for Preservation of Documents
• Policy on Determination and Disclosure
of Materiality of Events and Information
and Web Archival Policy
• Dividend Distribution Policy
• Group Risk Management Policy
• Commodity and Freight Risk
Management
• Policy on Subsidiary Governance
• Prevention of Sexual Harassment Policy
• Materiality Policy for Commodity
exposure
207
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. AUDITS AND INTERNAL CHECKS
AND BALANCES
S R B C & CO LLP, Chartered Accountants
and D T S & Associates, Chartered
Accountants, are Auditors of the
Company. The Company has an Internal
Audit Cell besides external firms acting
as independent internal auditors that
reviews internal controls and operating
systems and procedures. A dedicated
Legal Compliance Cell ensures that the
Company conducts its businesses with high
standards of legal, statutory and regulatory
compliances. RIL has implemented 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, health, safety and
environmental laws etc.
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
208
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:
GRI. WBCSD’s “Reporting matters” 2015
& 2017 has recognised RIL’s sustainability
report as leading example of the best
practices. The reports are put up on the
Company’s website.
• The Company has a designated Lead
Independent Director with a defined
role.
• All securities related filings with Stock
Exchanges are reviewed every quarter
by the Stakeholders’ Relationship
Committee.
• The Company has independent
Committees for matters related
to Corporate Governance and
stakeholders’ interface and nomination
of Board members.
• The Company’s internal audit is also
conducted by independent auditors.
• The Company undergoes quarterly
secretarial compliance certification from
an independent company secretary who
is in whole-time practice.
• The Company has appointed an
independent firm of Chartered
Accountant to conduct concurrent audit
of share transfer and other incidental
functions carried by Registrar and
Transfer Agents.
• The Company also has several other
committees of senior management to
review operational risk and governance
practices.
RIL’S SUSTAINABILITY REPORTING
JOURNEY
RIL has been publishing Sustainability
Reports annually since financial year
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
This is the third year of publishing
Integrated Report. This year’s Integrated
Annual Report refers the following 16
frameworks:
1.
International Integrated Reporting
Council (IIRC),
2. Global Reporting Initiative,
3. United Nation’s Sustainable
Development Goals (UN SDGs),
4. American Petroleum Institute / The
International Petroleum Industry
Environmental Conservation
Association (API / IPIECA),
5. United Nations Global Compact
(UNGC) Principles,
6. Business Responsibility Framework
based on the principles of National
Voluntary Guidelines on Social,
Environmental and Economic
Responsibilities of Business
(NVG - SEE),
7. World Business Council for Sustainable
Development’s focus areas,
8. Greenhouse Gas (GHG) Protocol,
9. Task Force on Climate-related
Financial Disclosures (TCFD)
recommendations,
10. Natural Capital Protocol (NCP),
11. United Nations Guiding Principles on
Business and Human Rights (UNGP),
12. Social return on investment (SROI),
13. The Global Recycle Standards (GRS)
Version 3.0 for traceability of fibres,
14. Prime Minister’s Office (PMO) initiatives
for India / NITI Aayog,
15. Social and Human Capital Protocol,
and
16. National Guideline on Responsible
Business Conduct by MCA.
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 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 promoting
technological advancement are equally
critical factors for the Company’s long-term
sustainability. For years, RIL has been living
with 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
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 AND
CLIMATE CHANGE
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. Reliance believes in the concept
of resource optimisation, extracting more
value from bottom of the barrel production
in its hydrocarbon business. Several steps
have also been taken to propagate a rich
biodiversity in the areas of its operations.
Through sound governance, environmental
impacts of each manufacturing location are
maintained at levels which are beyond the
legal obligations with respect to air quality,
fresh water usage, soil use, impact on
entire ecosystems.
well as developing technologies for cleaner
fuel adoption, process optimisation &
energy management and much more. The
Company has built a significant resource
pool and is committed to enhance its
efforts in the future.
5. FINANCIAL CAPITAL AND
CREDIT RATING
RIL has a strong track record of
raising long-term financing from global
financial markets at very competitive rates.
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.
6. SOCIAL AND RELATIONSHIP
CAPITAL
2. HUMAN CAPITAL AND PEOPLE
RIL, through its businesses,
CONNECT
RIL’s focus is on creating an enabling
work environment which provides a
platform to all its employees to learn
and grow. RIL is committed to creating
a diverse workforce and provides equal
opportunity to all its employees. Reliance
strengthened the learning culture through
social structuring, inculcating next
generation social media technologies and
collaboration with institutes of global
eminence.
3. MANUFACTURED CAPITAL AND
PRODUCT STEWARDSHIP
RIL has tapped into some of
the latest advances in manufacturing
technologies to make its manufacturing
plants smarter, safer and environmentally
more sustainable. The Jamnagar expansion
project set a world record for fast track
project execution, despite being one of the
world’s most complex and highly integrated
project. Through this project, the Company
has re-defined refining and petrochemicals
integration.
4. INTELLECTUAL CAPITAL AND
INNOVATION
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. RIL is also adopting as
as well as through its community
initiatives aims to create more and more
opportunities thus creating enhanced
societal value – directly and indirectly
for the wider society. 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.
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
put up on the Company’s website.
209
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. ROLE OF THE COMPANY SECRETARY
IN OVERALL GOVERNANCE
PROCESS
Functions of Company Secretary are
discharged by Group Company Secretary
and Joint Company Secretary. The
Company Secretary plays a key role
in ensuring that the Board (including
in 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. The
Company Secretary interfaces between the
management and regulatory authorities for
governance matters.
BOARD OF DIRECTORS
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
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.
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, category, DIN and shareholding of Directors are as follows:
Category
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. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil
Promoter
Directors
Independent
Directors
Executive
Directors
210
Director
Identification
Number (DIN)
No. of equity
shares held as
on March 31,
2019
00001695
72,31,692
03115198
00001963
00001879
00228513
00074119
06646490
07175393
02787784
02011213
00001620
00001623
00012144
02460200
67,96,292
6,80,000
60,400
0
0
0
7,000
13,500
0
33,56,748
32,23,772
6,00,000
58,300
Smt. Nita M. Ambani is 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.
Prof. Ashok Misra, demitted office as an
Independent Director of the Company,
w.e.f. October 17, 2018.
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.
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 in 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. Visits to various plant locations
and Corporate Social Responsibility
activity locations are organised for the
Independent Directors to enable them to
understand and get acquainted with the
operations of the Company.
The details of such familiarisation
programmes for Independent Directors are
put up on the Company’s website.
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 CODE OF CONDUCT
The Company has in place a comprehensive
Code of Conduct and Our Code (the Codes)
applicable to the Directors and employees.
The Codes give guidance and support
needed for ethical conduct of business and
compliance of law. The Codes reflect the
core values of the Company viz. Customer
Value, Ownership Mindset, Respect,
Integrity, One Team and Excellence.
A copy of the Code of Conduct and Our
Code has been put up on the Company’s
website. The Codes have 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 Company believes that sound
succession plans for the senior leadership
are very important for creating a robust
future for the Company. The Human
Resources, Nomination and Remuneration
Committee works along with the Human
Resource team of the Company for a
structured leadership succession plan.
CORE SKILLS / EXPERTISE /
COMPETENCIES AVAILABLE WITH
THE BOARD
The Board comprises highly qualified
members who possess required skills,
expertise and competence that allow them
to make effective contributions to the
Board and its Committees.
The following skills / expertise /
competencies have been identified for the
effective functioning of the Company and
are currently available with the Board:
• Leadership / Operational experience
• Strategic Planning
•
Industry Experience, Research &
Development and Innovation
• Global Business
• Financial, Regulatory / Legal & Risk
Management
• Corporate Governance
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.
In the opinion of the Board, the
Independent Directors fulfil the conditions
specified in the Listing Regulations and are
independent of the management.
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
2018-19. 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.
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 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.
211
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 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. Every quarter,
the Board notes compliances of all laws
applicable to the Company.
The Meetings are generally held at the
Company’s office at Maker Chambers IV,
222, Nariman Point, Mumbai 400 021.
The Company’s various business heads /
service heads are advised to schedule their
work plans well in advance, particularly
with regard to matters requiring discussion
/ approval / decision at Board / 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
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. All
material information is incorporated in
the agenda for facilitating meaningful
and focussed 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 the
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.
Important decisions taken at Board /
Committee meetings are communicated
promptly to the concerned departments
/ divisions. Action taken 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
framed thereunder, Listing Regulations
and Secretarial Standards issued by the
Institute of Company Secretaries of India.
NUMBER OF BOARD MEETINGS
Seven Board meetings were held during the
year, as against the statutory requirement
of four meetings. The details of Board
meetings held are given below:
Date
April 27, 2018
June 22, 2018
July 27, 2018
October 17, 2018
January 17, 2019
March 6, 2019
March 29, 2019
Board
Strength
No. of
Directors
Present
14
14
14
14
14
14
14
13
13
14
14
14
13
14
212
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 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:
No. of Membership(s)
Name of the Director
/ Chairmanship(s)
of committees in
other Company(s)
as on 31-03-2019
(2)
Category of Directorship and name of the other listed
Company(s) as on 31-03-2019
No. of other
Directorship(s)
as on
31-03-2019
Attendance
at meetings
during
2018-19
Board AGM (1)
Mukesh D. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
7
7
7
4
Prof. Ashok Misra *
Prof. Dipak C. Jain
7
Dr. Raghunath A. Mashelkar 6
Yes
Yes
Yes
No
Yes
Yes
5
Nil
5
NA
3
9
Adil Zainulbhai
7
Yes
9
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya #
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P. M.S. Prasad
Pawan Kumar Kapil
NA - Not Applicable
7
6
3
7
7
7
7
6
Yes
Yes
NA
Yes
Yes
Yes
Yes
2
1
4
4
1
3
4
Yes
Nil
1. Reliance Jio Infocomm Limited@ – Non-Executive Director
Nil
1. Zodiac Clothing Company Limited – Independent Director
2. The Supreme Industries Limited – Independent Director
3. Emami Limited – Independent Director
NA
1. Reliance Jio Infocomm Limited@ – Independent Director
1. Godrej Agrovet Limited – Independent Director
2. Piramal Enterprises Limited - Independent Director
Nil
Nil
2 (including 1 as
Chairman)
NA
2
1
1. Cipla Limited – Independent Director
2. Network18 Media & Investments Limited – Independent
8 (including 5 as
Chairman)
Director
3. TV18 Broadcast Limited – Independent Director
4. Larsen & Toubro Limited – Independent Director
5. Reliance Jio Infocomm Limited@ – Independent Director
1. Adani Power Limited – Independent Director
1. Reliance Jio Infocomm Limited@ – Independent Director
1. Piramal Enterprises Limited – Independent Director
2. Wipro Limited – Independent Director
3. CRISIL Limited – Independent Director
1. EIH Limited – Non-Executive Director
Nil
Nil
1. Network18 Media & Investments Limited –
Non-Executive Director
2
Nil
1
Nil
1 (as Chairman)
Nil
4
2. TV18 Broadcast Limited – Non-Executive Director
Nil
Nil
(1)
(2)
The Directorships, held by Directors as mentioned above, do not include directorship(s) in foreign companies.
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.
@
Debentures are listed on Stock Exchanges
*
#
Ceased to be a Director, w.e.f. October 17, 2018. Four meetings were held during his tenure.
Appointed as a Director, w.e.f. October 17, 2018. Three meetings were held since her 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.
213
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
COMMITTEES
DETAILS OF THE COMMITTEES AND OTHER RELATED INFORMATION ARE PROVIDED HEREUNDER:
Composition of Committees of the Company
Audit Committee
1. Yogendra P. Trivedi
Independent Director
(Chairman of the Committee)
2. Dr. Raghunath A. Mashelkar
Independent Director
3. Adil Zainulbhai
Independent Director
4. Raminder Singh Gujral
Independent Director
Human Resources, Nomination and Remuneration Committee
1. Adil Zainulbhai
Independent Director
(Chairman of the Committee)
2. Yogendra P. Trivedi
Independent Director
3. Dr. Raghunath A. Mashelkar
Independent Director
4. Raminder Singh Gujral
Independent Director
5. Dr. Shumeet Banerji
Independent Director
Stakeholders’ Relationship Committee
Corporate Social Responsibility and Governance Committee
1. Yogendra P. Trivedi
Independent Director
(Chairman of the Committee)
2. Prof. Ashok Misra (up to October 17, 2018)
Independent Director
3. Arundhati Bhattacharya (w.e.f. October 17, 2018)
Independent Director
4. Nikhil R. Meswani
Executive Director
5. Hital R. Meswani
Executive Director
Risk Management Committee
1. Adil Zainulbhai
Independent Director
(Chairman of the Committee)
2. Dr. Shumeet Banerji (w.e.f. October 17, 2018)
Independent Director
3. Hital R. Meswani
Executive Director
4. P.M.S. Prasad
Executive Director
5. Alok Agarwal
Chief Financial Officer
6. Srikanth Venkatachari
Joint Chief Financial Officer
Finance Committee
1. Yogendra P. Trivedi
Independent Director
(Chairman of the Committee)
2. Dr. Raghunath A. Mashelkar
Independent Director
3. Dr. Shumeet Banerji
Independent Director
4. Nikhil R. Meswani
Executive Director
Health, Safety and Environment Committee
1. Hital R. Meswani
Executive Director
(Chairman of the Committee)
2. Dr. Raghunath A. Mashelkar
Independent Director
3. Prof. Ashok Misra (up to October 17, 2018)
Independent Director
4. Arundhati Bhattacharya (w.e.f. October 17, 2018)
Independent Director
5. P. M. S. Prasad
Executive Director
6. Pawan Kumar Kapil
Executive Director
1. Mukesh D. Ambani Chairman and Managing Director (Chairman of the Committee)
2. Nikhil R. Meswani Executive Director
3. Hital R. Meswani Executive Director
K. Sethuraman, Group Company Secretary and Chief Compliance Officer and Savithri Parekh, Joint Company Secretary and Compliance
Officer, are the secretaries for all the committees constituted by the Board.
214
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19
Meetings of Committees held during the year and Directors’ Attendance:
Committees of the Company
Audit
Committee
Human
Resources,
Nomination
and
Remuneration
Committee
Corporate
Social
Responsib-
ility and
Governance
Committee
Stakehold-
ers’
Relationship
(SRC)
Committee
Health,
Safety and
Environment
(HSE)
Committee
Finance
Committee
Risk
Management
(RM)
Committee
Meetings held
Directors’ Attendance
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 #
Arundhati Bhattacharya @
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P.M.S. Prasad
Pawan Kumar Kapil
NA - Not Applicable
13
NA
NA
13
NA
NA
12
13
13
NA
NA
NA
NA
NA
NA
NA
5
NA
NA
5
NA
NA
5
5
5
5
NA
NA
NA
NA
NA
NA
4
NA
NA
4
NA
NA
4
NA
NA
4
NA
NA
2
NA
NA
NA
4
NA
NA
4
3
NA
NA
NA
NA
NA
1
NA
2
4
NA
NA
4
NA
NA
NA
3
NA
4
NA
NA
NA
1
NA
NA
4
4
3
14
11
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
13
14
NA
NA
2
NA
NA
NA
NA
NA
NA
2
NA
1
NA
NA
NA
2
2
NA
*
Ceased to be a member of Committees w.e.f. October 17, 2018. (3 meetings of SRC Committee and 3 meetings of HSE Committee were held during his tenure).
@ Appointed as a member of Committees w.e.f. October 17, 2018. (1 meeting of SRC Committee and 1 meeting of HSE Committee were held since her appointment).
#
Appointed as a member of RM Committee w.e.f. October 17, 2018. (1 meeting of the Committee was 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. The composition and terms of
reference of all the committees are in
compliance with the Companies Act, 2013
and Listing Regulations, as applicable. The
composition of all the committees is given
in this Report.
Terms of Reference and other Details
of Committees
Audit Committee
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.
• Recommend appointment,
remuneration and terms of appointment
of auditors, including cost auditors, of
the Company.
• Approval of payment to statutory
auditors, including cost auditors, for any
other services rendered by them.
• Review with the management, the
annual financial statements and
auditor’s 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 in terms of clause (c)
of sub-section (3) of Section 134 of
the Companies Act, 2013;
b) changes, if any, in accounting policies
and practices and reasons for the
same;
c) major accounting entries involving
estimates based on the exercise of
judgement by management;
d) significant adjustments made in the
financial statements arising out of
audit findings;
e) compliance with listing and other
legal requirements relating to
financial statements;
f) disclosure of any related party
transactions;
215
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. g) modified opinion(s) in the draft audit
report.
• Review with the management, the
quarterly financial statements before
submission to the Board for approval.
• Review 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.
• Review and monitor the auditor’s
independence and performance and
effectiveness of audit process.
• Approval or any subsequent
modification of transactions with
related parties of the Company.
• 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) Review with the management,
performance of statutory and
internal auditors.
b) Review with the management
adequacy of the internal control
systems.
• Review 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.
• Discuss with internal auditors of any
significant findings and follow up
there-on.
• Review 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
216
nature and reporting the matter to the
Board.
• Discuss with statutory auditors before
• Note report of compliance officer as per
SEBI (Prohibition of Insider Trading)
Regulations, 2015.
the audit commences, about the nature
and scope of audit as well as post audit
discussion to ascertain any area of
concern.
• Formulate the scope, functioning,
periodicity of and methodology for
conducting the internal audit.
• Review show cause, demand,
• Look into the reasons for substantial
defaults, in the payment to the
depositors, debenture holders,
shareholders (in case of non-payment of
declared dividend) and creditors.
• Review the functioning of the Whistle
Blower mechanism / oversee the vigil
mechanism.
• Approval of appointment of Chief
Financial Officer after assessing
qualifications, experience and
background etc. of the candidate.
• Mandatorily review the following:
a) Management Discussion and Analysis
of financial condition and results of
operations
b) Statement of significant related
party transactions (as defined by
the Audit Committee), submitted by
management
c) Management letters / letters of
internal control weaknesses issued
by the statutory auditors
d) Internal audit reports relating to
internal control weaknesses
e) Appointment, removal and terms of
remuneration of the chief internal
auditor
f) Statement of deviations:
(a) quarterly statement of
deviation(s) including report of
monitoring agency, if applicable,
submitted to stock exchange(s) in
terms of Regulation 32(1) of the
Listing Regulations.
(b) 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.
• Review financial statements, in
particular the investments made by the
Company’s unlisted subsidiaries
prosecution notices and penalty notices,
which are materially important.
• Review any material default in financial
obligations to and by the Company, 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 the Company or taken an adverse
view regarding another enterprise that
may have negative implications on the
Company.
• Details of any joint venture or
collaboration agreement.
• Sale of investments, subsidiaries, assets
which are material in nature and not in
normal course of business.
• Quarterly details of foreign exchange
exposures and the steps taken by
management to limit the risks of
adverse exchange rate movement, if
material.
• Review the utilisation of loans and /
or advances from / investment by the
holding company in the subsidiary
exceeding ` 100 crore or 10% of the
asset size of the subsidiary, whichever
is lower including existing loans /
advances / investments.
• 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.
General
Members of the Audit Committee possess
requisite qualifications. 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.
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 During the year all the recommendations
made by the Committee were accepted by
the Board. The Lead Cost Auditor 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, 2018 was August 25, 2018 and the cost
audit report was filed by the Company
on August 10, 2018. The cost audit report
of the Company for financial year ended
March 31, 2019 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 Committee was
present at the last Annual General Meeting
held on July 5, 2018.
Meeting Details
Thirteen meetings of the Committee
were held during the year, as against the
statutory requirement of four meetings.
The meetings were held on April 12, 2018;
April 25, 2018; April 27, 2018; June 22, 2018;
July 25, 2018; July 27, 2018; October 16,
2018; October 17, 2018; January 17,
2019; January 18, 2019; February 7,
2019; March 6, 2019 and March 29, 2019.
The details of attendance of Committee
members are given in this Report.
Human Resources, Nomination and
Remuneration Committee
Terms of Reference of the Committee
inter alia include the following:
• Formulate the criteria for determining
qualifications, positive attributes
and independence of a Director, and
recommend to the Board a policy,
relating to the remuneration of the
Directors, Key Managerial Personnel and
other employees.
• Formulate the criteria for evaluation of
performance of Independent Directors
and the Board of Directors.
• Devise a policy on Board Diversity.
•
Identify persons who are qualified to
become Directors and who may be
appointed in senior management in
accordance with the criteria laid down
and to recommend to the Board their
appointment and / or removal.
• Consider extension or continue the term
of appointment of the Independent
Directors on the basis of the report of
performance evaluation of Independent
Directors.
• Specify the manner for effective
evaluation of performance of Board, its
Committees and Individual Directors
to be carried out either by the Board,
by the Human Resources, Nomination
and Remuneration Committee or by an
independent external agency 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 Schemes.
• Review 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.
• Review significant development in
Human Resources / Industrial Relations
front like signing of wage agreement,
implementation of Voluntary Retirement
Scheme etc.
• Recommend to the Board, all
remuneration, in whatever form,
payable to senior management.
• 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 as against statutory
requirement of one meeting. The meetings
were held on April 25, 2018; July 26,
2018; October 16, 2018; January 18,
2019 and March 29, 2019. The details of
attendance of Committee members are
given in this Report. During the year all the
recommendations made by the Committee
were accepted by the Board.
The Chairman of the Committee was
present at the last Annual General Meeting
held on July 5, 2018.
Stakeholders’ Relationship Committee
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.
• 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.
• Consider, resolve and monitor various
aspects of interest of shareholders,
debenture holders and other security
holders including the redressal of
investors’ / shareholders’ / security
217
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Investor Grievance Redressal
The number of complaints received and resolved to the satisfaction of investors during the
year and their break-up is as under:
Type of Complaints
Number of Complaints
Non-Receipt of Annual Reports
Non-Receipt of Dividend
Non-Receipt of Interest / Redemption payments
Transfer of securities
Total
189
126
11
536
862
As on March 31, 2019, no complaints were outstanding.
The response time for attending to investors’ correspondence during financial year
2018-19 is as under:
Particulars
Total number of correspondence received during 2018-19
Replied within 1 to 4 days of receipt
Replied after 4 days of receipt
Number
3,07,303
3,06,047
1,256
%
100.00
99.59
0.41
Corporate Social Responsibility and
Governance Committee
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 to 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.
from time to time and to review and
recommend the Business Responsibility
Report (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.
• Oversee the implementation of polices
• Review and assess the adequacy of
contained in the Business Responsibility
Policy Manual and to make any changes
/ modifications, as may be required,
the Company’s Corporate Governance
Manual, Code of Conduct for Directors
and Senior Management, the Code
holders’ grievances related to transfer /
transmission of securities, non-receipt
of annual reports, non-receipt of
declared dividend, issue new / duplicate
certificates, general meetings and so on.
• Review measures taken for effective
exercise of voting rights by shareholders.
• Review adherence to the service
standards adopted by the Company
in respect of various services being
rendered by the Registrar & Share
Transfer Agent and recommend
methods to upgrade the service
standards adopted by the Company.
• Review various measures and initiatives
taken by the Company for reducing
the quantum of unclaimed dividends
and ensuring timely receipt of dividend
warrants / annual reports / statutory
notices by the security shareholders of
the Company.
• 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 as against statutory
requirement of one meeting. The meetings
were held on May 21, 2018; July 27, 2018;
October 17, 2018 and January 29, 2019.
The details of attendance of Committee
members are given in this Report.
The Chairman of the Committee was
present at the last Annual General Meeting
held on July 5, 2018.
Compliance Officer
K. Sethuraman, Group Company Secretary
and Chief Compliance Officer and Savithri
Parekh, Joint Company Secretary and
Compliance Officer, are the Compliance
Officers for complying with requirements of
Securities Laws.
Prohibition of Insider Trading
With a view to regulate trading in securities
by the directors and designated persons,
the Company has adopted a Code of
Conduct for Prohibition of Insider Trading.
218
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 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.
• Formulate / approve codes and / or
policies for 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 disciplined participation.
• Carry out any other function as is
mandated by the Board from time
to time and / or enforced by any
statutory notification, amendment or
modification as may be applicable.
Meeting Details
Four meetings of the Committee were held
during the year. The meetings were held on
April 27, 2018; July 26, 2018; October 16,
2018 and January 17, 2019. The details of
attendance of Committee members are
given in this Report. During the year all the
recommendations made by the Committee
were accepted by the Board.
Risk Management Committee
Terms of Reference of the Committee
inter alia include the following:
• Frame Risk Management Plan and
Policy.
• Oversee implementation / Monitoring of
Risk Management Plan and Policy.
• Validate the process of Risk
Management.
• Validate the procedure for Risk
Minimisation.
• Periodically review and evaluate the
Risk Management Policy and practices
with respect to risk assessment and risk
management processes.
• Continually obtain 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.
• Review of cyber security and related
risks.
• 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
Two meetings of the Committee were
held during the year as against statutory
requirement of one meeting. The meetings
were held on July 26, 2018 and January 18,
2019. The details of attendance of
Committee members are given in this
Report.
Health, Safety and Environment
Committee
Terms of Reference of the Committee
inter alia include the following:
• Monitor and ensure the highest
standards of environmental, health and
safety norms.
recommendations about changes to the
charter of the Committee.
• Review fatal or serious accidents,
dangerous occurrences, any material
effluent or pollution problems.
• 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 25, 2018; July 25, 2018; October 16,
2018 and January 29, 2019. The details of
attendance of Committee members are
given in this Report.
Finance Committee
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
• Ensure compliance with applicable
management.
pollution and environmental laws at the
Company’s works / factories / locations
by putting in place effective systems
in this regard and review the same
periodically.
• Review as the Committee deems
appropriate, the Company’s health,
safety and environment related policy
and making recommendations as
necessary.
• Review the Company’s performance on
health, safety and environment related
matters and suggest improvements as
the Committee may deem necessary.
• Review procedures and controls being
followed at the Company’s various
manufacturing facilities and plants for
compliance with relevant statutory
provisions.
• Review regularly and making
• Exercise all powers to borrow money
(otherwise than by issue of debentures)
within limits approved by the Board,
and take necessary actions connected
therewith, including refinancing for
optimisation of borrowing costs.
• Give guarantees / issue letters of
comfort / providing securities within the
limits approved by the Board.
• Borrow money by way of loan and
/ or issue and allot bonds / notes
denominated in one or more foreign
currencies in international markets for
the purpose of refinancing the existing
debt, capital expenditure, general
corporate purposes, including working
capital requirements and possible
strategic investments within limits
approved by the Board.
219
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. • Provide corporate guarantee /
performance guarantee by the Company
within the limits approved by the Board.
• Approve opening and operation of
Investment Management Accounts with
foreign banks and appoint them as
agents, establishment of representative
/ sales offices in or outside India.
• Other transactions or financial issues
that the Board may desire to have them
reviewed by the Finance Committee
such as:
– Forex Derivative Transactions
– OTC Trades
– Note outstanding borrowings, inter
corporate investments, loans and
guarantees
– Note status report and hedging
activities on commodity and forex
products.
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, communication inter se
between board members, effective
participation, domain knowledge,
compliance with code of conduct, vision
and strategy, benchmarks established by
global peers etc., which is in compliance
with applicable laws, regulations and
guidelines.
The details relating to remuneration of
Directors, as required under Regulation 34
read with Schedule V of the Listing
Regulations, have been given under
a separate section, viz. ‘Directors’
Remuneration’ in this Report.
DIRECTORS’ REMUNERATION
REMUNERATION POLICY
The Company’s Remuneration Policy
for Directors, Key Managerial Personnel
and other employees is available on the
Company’s website. 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.
• Delegate authorities from time to time
REMUNERATION OF THE MANAGING DIRECTOR AND WHOLE-TIME DIRECTORS
to the executives / authorised persons to
implement the Committee’s decisions.
• Carry out any other function as is
mandated by the Board from time to
time.
Meeting Details
Fourteen meetings of the Finance
Committee were held during the year.
The meetings were held on April 27, 2018;
July 27, 2018; October 12, 2018; October
16, 2018; October 17, 2018; November 2,
2018; November 6, 2018; November 9, 2018;
December 5, 2018; December 10, 2018;
December 11, 2018; March 5, 2019; March 7,
2019 and March 8, 2019. The details of
attendance of Committee members are
given in this Report.
Name of the Director
Salary and
allowances
Perquisites
Retiral
benefits
Commission
payable
Total
(` in crore)
Stock
Options
Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
4.45
5.81
5.80
9.70*
3.77*
0.31
0.02
0.03
0.00
0.26
0.71
0.34
0.34
0.30
0.14
9.53
14.40
14.40
-
-
15.00
20.57
20.57
10.01
4.17
-
-
-
-
-
* includes performance linked incentives for the FY 2017-18 paid in FY 2018-19.
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 date 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.
220
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 REMUNERATION OF NON-EXECUTIVE DIRECTORS
Name of the Non – Executive Director
Sitting Fee
Commission
0.09
0.36
0.12
0.10
0.34
0.30
0.07
0.28
0.19
0.07
1.92
1.65
1.65
0.90
1.65
1.65
1.65
1.65
1.65
1.65
0.75
14.85
(` in crore)
Total
1.74
2.01
1.02
1.75
1.99
1.95
1.72
1.93
1.84
0.82
16.77
subsidiary. Keeping in view good corporate
governance, Prof. Dipak C. Jain, Shri Adil
Zainulbhai and Dr. Shumeet Banerji, the
Company’s Independent Directors are
Independent Directors on the Board of
Reliance Jio Infocomm Limited (RJIL), a
material subsidiary of the Company whose
non-convertible debt securities are listed
on Stock Exchanges. Prof. Dipak C. Jain
and Shri Adil Zainulbhai are 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.
• Minutes of Board meetings of subsidiary
companies are placed before the
Company’s Board regularly.
• A statement containing all significant
transactions and arrangements entered
into by subsidiary companies is placed
before the Company’s Board.
• Presentations are made to the
Company’s Board on business
performance by the senior management
on major subsidiaries of the Company.
The Company’s Policy for determining
Material Subsidiaries is put up on the
Company’s website.
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.
Mansingh L. Bhakta
Yogendra P. Trivedi
Prof. Ashok Misra *
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Nita M. Ambani
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya**
Total
* ceased to be a director w.e.f. October 17, 2018
** appointed as a director w.e.f. October 17, 2018
During the year, there were no other
pecuniary relationships or transactions of
Non-Executive Directors with the Company.
The Company has not granted any stock
option to its Non-Executive Directors.
SUBSIDIARY COMPANIES’
MONITORING FRAMEWORK
All subsidiary companies are managed
with their Boards having the rights and
obligations to manage such companies
in the best interest of their stakeholders.
As on March 31, 2019, the Company
did not have any material unlisted
The date and time of Annual General Meetings held during last three financial years, and the special resolution(s) passed thereat, are as
follows:
Year
Date
Time
Special Resolution Passed
2017-18
July 5, 2018
11:00 a.m.
2016-17
July 21, 2017 11:00 a.m.
Offer or invitation to subscribe to Redeemable Non-Convertible Debentures on private placement
i. Re-appoint Shri Adil Zainulbhai as an Independent Director
ii.
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.
2015-16
September
1, 2016
11:00 a.m.
i.
Offer or invitation to subscribe to Redeemable Non – Convertible Debentures on private
placement
Offer or invitation to subscribe to Redeemable Non – Convertible Debentures on private
placement
221
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. RESOLUTION(S) PASSED THROUGH
POSTAL BALLOT:
No postal ballot was conducted during
the financial year 2018-19. There is no
immediate proposal for passing any
resolution through postal ballot.
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.
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.
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 alleging
incorrect disclosure of the diluted
Earnings per Share. The Company
filed a reply to the show cause notice
and attended the personal hearing
on July 26, 2016. SEBI appointed new
Adjudicating Officer (AO). The last
hearing before the AO was held on
November 22, 2018. Further details
sought by AO have been provided.
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
(b)
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
filed an appeal against the said
Order before 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.
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 made preliminary
objections in the matter in a
hearing before the Adjudication
Officer on September 11, 2018
and filed written submissions
with SEBI on September 12, 2018
in relation to the said preliminary
objections.
(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.
222
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19
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
violations to the Chairman of the Audit
Committee. During the year, no employee
was denied access to the Audit Committee.
The Vigil Mechanism and Whistle-blower
policy is put up on the Company’s website.
PREVENTION OF SEXUAL
HARASSMENT OF WOMEN AT
WORKPLACE
The Company is committed to provide
a work environment that ensures every
employee is treated with dignity, respect
and afforded equal treatment. The details
of the same have been disclosed in the
Management’s Discussion & Analysis
(MD&A) Report forming part of the Annual
Report.
ADOPTION OF MANDATORY AND
DISCRETIONARY REQUIREMENTS
The Company has complied with all
mandatory requirements of Regulation 34
of the Listing Regulations. The Company
has adopted the following discretionary
requirements 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
unmodified opinions on financial
statements.
REPORTING OF INTERNAL AUDITOR
The Internal Auditor directly reports to the
Audit Committee.
MEANS OF COMMUNICATION
Quarterly results: The Company’s
quarterly / half-yearly / annual financial
results are sent to the Stock Exchanges and
published in ‘Indian Express’, ‘Financial
Express’ and ‘Loksatta’. Simultaneously,
they are also put on the Company’s
website.
News releases, presentations: Official
news releases and official media releases
are sent to Stock Exchanges and are put on
the Company’s website.
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 are put on
the Company’s website, 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
Statement, Audited Consolidated Financial
Statement, Board’s Report, Auditors’
Report and other important information is
circulated to members and others entitled
thereto. The 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.
Chairman’s Communiqué: 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.
Letters to Investors: Letters were sent
to the shareholders / debenture holders
as per records, for claiming unclaimed /
unpaid dividend / interest or redemption
amount on debentures / dematerialisation
of shares / updating PAN and Bank Account
details. The Company has also sent
intimations to the shareholders holding
shares in physical form, informing them
about SEBI’s mandate to permit transfer of
shares only in dematerialised form w.e.f.
April 1, 2019.
NSE Electronic Application Processing
System (NEAPS): NEAPS is a web-based
application designed by NSE for corporates.
All periodical and other compliance filings
are filed electronically on NEAPS.
BSE Listing Centre (Listing Centre): BSE’s
Listing Centre is a web-based application
designed for corporates. All periodical
and other compliance filings are filed
electronically on the Listing Centre.
SEBI Complaints Redress System
(SCORES): Investor complaints are
processed at SEBI 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
complaints and their current status.
Designated exclusive email-IDs: 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 sends feedback form seeking
shareholders’ views on various matters
relating to investor services and Annual
Report for improvement in future.
223
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 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.
CREDIT RATING
The Company has obtained rating from
CRISIL Limited, ICRA Limited and CARE
Ratings Limited during the financial year
2018-19. There has been no revision in
credit ratings during the financial year
2018-19.
Rating Agency
CRISIL Limited
ICRA Limited
CARE Ratings Limited CARE AAA
Rating
Outlook
CRISL AAA
Stable
[ICRA] AAA Stable
Stable
UTILISATION OF FUNDS RAISED
THROUGH ISSUE OF
NON-CONVERTIBLE DEBENTURES
The Company has issued on private
placement and allotted, Unsecured,
Redeemable Non-convertible Debentures
(NCDs) of face value of ` 10,00,000/-
(Rupees Ten Lakh) each, aggregating
`19,000 crore (paid up to the extent of
` 17,000 crore) during the financial year
2018-19 in five tranches as per the terms
of issue of the respective tranches. The
funds raised through issuance of NCDs have
been utilised for refinancing of existing
borrowings and other purpose in the
ordinary course of business.
DEBENTURE TRUSTEE
Axis Trustee Services Limited
The Ruby, 2nd Floor, SW,
29, Senapati Bapat Marg,
Dadar (West), Mumbai – 400028
Tel: +91-22-62300451
Fax: +91-22-62300700
Email: debenturetrustee@axistrustee.com;
complaints@axistrustee.com
Domestic Custodian
ICICI Bank Limited
Empire Complex, 1st Floor, 414, Senapati
Bapat Marg, Lower Parel, Mumbai 400 013
PAYMENT OF LISTING FEES
Annual listing fee for the financial year
2019-20 has been paid by the Company
to BSE and NSE. Annual maintenance and
listing agency fee for the calendar year
2019 has been paid by the Company to the
Luxembourg Stock Exchange.
PAYMENT OF DEPOSITORY FEES
Annual Custody / Issuer fee for the year
2019-20 will be paid by the Company to
Central Depository Services Limited (CDSL)
and National Securities Depository Limited
(NSDL) on receipt of the invoice.
FEES PAID TO THE STATUTORY
AUDITORS
Total fees for all services paid by the
Company and its subsidiaries, on a
consolidated basis, to statutory auditors
of the Company and other firms in the
network entity of which the statutory
auditors are a part, during the year ended
March 31, 2019, is as follows:
Particulars
Fees for audit and
related services
Other fees
Total
D T S &
Associates
and their
network
entities
(` in crore)
S R B C &
CO LLP
and their
network
entities
7.44
14.65
0.32
7.76
24.88
39.53
DEBT SECURITIES
The details of listing of Non-Convertible
Debentures issued by the Company are
given here below:
Non-Convertible
Debentures Series
PPP 180 – T1
PPD Series A to H
PPD Series IA & IB
PPD Series J
Listing Details
Listed on Debt Market
Segment of BSE and
NSE
GENERAL SHAREHOLDER
INFORMATION
ANNUAL GENERAL MEETING
Monday, August 12, 2019 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
DIVIDEND PAYMENT DATE
Credit / dispatch of dividend payment:
Between August 13, 2019 and August 19,
2019.
FINANCIAL YEAR
April 1 to March 31
FINANCIAL CALENDAR (TENTATIVE)
RESULTS FOR THE QUARTER ENDING
June 30, 2019 – Third week of July, 2019
September 30, 2019 – Third week of
October, 2019
December 31, 2019 – Third week of
January, 2020
March 31, 2020 – Third week of April, 2020
Annual General Meeting – June / July,
2020
LISTING ON STOCK EXCHANGES
Equity Shares
BSE Limited (BSE)
Phiroze Jeejeebhoy Towers, Dalal Street,
Mumbai 400 001
Scrip Code - 500325
National Stock Exchange of India Limited
(NSE)
Exchange Plaza, C-1, Block G, Bandra-Kurla
Complex, Bandra (East), Mumbai 400 051
Trading Symbol – RELIANCE
ISIN: INE002A01018
Global Depository Receipts (GDRs)
Luxembourg Stock Exchange
35A Boulevard Joseph II,
L-1840, Luxembourg
Overseas Depository
The Bank of New York Mellon Corporation
240, Greenwich Street, New York,
NY 10286, USA
224
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19
STOCK MARKET PRICE DATA
Month
April 2018
May 2018
June 2018
July 2018
August 2018
September 2018
October 2018
November 2018
December 2018
January 2019
February 2019
March 2019
National Stock Exchange of India Limited (NSE)
BSE Limited (BSE)
High Price (`)
Low Price (`)
Volume (No.)
High Price (`)
Low Price (`)
Volume (No.)
1,011.00
1,000.00
1,036.00
1,190.40
1,329.00
1,281.35
1,257.70
1,186.00
1,174.90
1,264.70
1,321.20
1,388.00
885.25
906.60
918.45
957.00
1,165.95
1,183.50
1,016.40
1,050.00
1,055.00
1,081.10
1,206.00
1,218.60
12,59,00,999
12,69,10,309
16,15,78,463
19,92,78,275
14,88,03,132
17,99,32,122
27,54,87,319
16,36,81,574
15,27,34,872
21,37,48,954
17,44,15,206
18,66,86,479
1,010.70
999.30
1,035.80
1,190.00
1,328.75
1,279.90
1,260.00
1,186.00
1,174.00
1,263.00
1,320.85
1,386.60
886.10
907.10
919.10
957.55
1,166.00
1,183.20
1,017.00
1,050.30
1,055.35
1,081.25
1,206.15
1,218.20
86,39,469
1,13,78,419
1,66,12,272
1,14,41,431
99,39,864
96,48,792
1,81,45,610
1,72,83,993
1,01,28,281
1,41,70,613
1,40,01,202
1,47,48,550
[Source: This information is compiled from the data available on the websites of BSE and NSE]
BSE SENSEX VS RIL SHARE PRICE
E
S
B
39,000
38,000
37,000
36,000
35,000
34,000
33,000
32,000
NSE NIFTY VS RIL SHARE PRICE
E
S
N
12,000
11,500
11,000
10,500
10,000
9,500
9,000
8
1
-
r
p
A
8
1
-
y
a
M
8
1
-
n
u
J
8
1
-
l
u
J
8
1
-
g
u
A
8
1
-
p
e
S
8
1
-
t
c
O
8
1
-
v
o
N
8
1
-
c
e
D
9
1
-
n
a
J
9
1
-
b
e
F
9
1
-
r
a
M
BSE Sensex
RIL Close Price (`)
1,400
1,300
1,200
1,100
1,000
900
800
L
I
R
1,400
1,300
1,200
1,100
L
I
R
1,000
900
800
8
1
-
r
p
A
8
1
-
y
a
M
8
1
-
n
u
J
8
1
-
l
u
J
8
1
-
g
u
A
8
1
-
p
e
S
8
1
-
t
c
O
8
1
-
v
o
N
8
1
-
c
e
D
9
1
-
n
a
J
9
1
-
b
e
F
9
1
-
r
a
M
NSE Nifty
RIL Close Price (`)
225
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. SHARE PRICE PERFORMANCE IN COMPARISON TO BROAD BASED INDICES – BSE SENSEX AND NSE NIFTY AS ON
MARCH 31, 2019
FY2018-19
2 Years
3 Years
5 Years
10 years
RIL Share Performance
on BSE
Sensex Performance
RIL Share Performance
on NSE
Nifty Performance
54.40%
106.65%
160.81%
193.29%
257.94%
17.30%
30.56%
52.60%
72.75%
298.34%
54.44%
106.41%
160.86%
192.94%
257.63%
14.93%
26.71%
50.21%
73.38%
284.78%
MARKET CAPITALISATION
The Market Capitalisation of the Company based on year end closing prices quoted on NSE is given below:
e
r
o
r
c
h
k
a
l
n
i
`
10
9
8
7
6
5
4
3
2
1
0
8.64
5.74
3.53
3.45
2.40
2.50
3.01
2.67
4.28
3.39
0
1
-
9
0
0
2
1
1
-
0
1
0
2
2
1
-
1
1
0
2
3
1
-
2
1
0
2
4
1
-
3
1
0
2
5
1
-
4
1
0
2
6
1
-
5
1
0
2
7
1
-
6
1
0
2
8
1
-
7
1
0
2
9
1
-
8
1
0
2
REGISTRARS AND TRANSFER AGENTS
Karvy Fintech 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
SHARE TRANSFER SYSTEM
Share transfers have been processed and
share certificates duly endorsed have
been delivered within a period of seven
days from the date of receipt, subject to
documents being valid and complete in
all respects. The Board has delegated
the authority for approving transfer,
transmission, and so on of the Company’s
securities to the Managing Director and / or
Company Secretary. A summary of transfer
/ transmission of securities of the Company
so approved by the Managing Director /
Company Secretary is placed at quarterly
meetings of Board 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.
Trading in equity shares of the Company
is permitted only in dematerialised form.
SEBI has mandated that securities of
listed companies can be transferred only
in dematerialised form w.e.f. April 1, 2019.
Accordingly the Company / its RTA has
stopped accepting any fresh lodgement
of transfer of shares in physical form.
Members holding shares in physical
form are advised to avail of the facility of
dematerialisation.
226
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19
SHAREHOLDING PATTERN AS ON MARCH 31, 2019
Category of shareholder
Sr.
No.
(A) Shareholding of Promoter and Promoter Group
(1)
Indian
(2) Foreign
Total Shareholding of Promoter and Promoter Group
(B) Public Shareholding
(1)
Institutions
(2) Non-institutions
Total Public Shareholding
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group
(2) Public
Total shares held by Custodians and against which Depository
Receipts have been issued
Total (A) + (B) + (C)
Number of
shareholders
Total number of
shares
% of (A+B+C)
51*
0
51
1,586
22,09,597
22,11,183
0
1
1
292,62,02,148
0
292,62,02,148
225,51,95,645
100,86,25,552
326,38,21,197
0
14,86,70,478
14,86,70,478
46.16
0.00
46.16
35.58
15.91
51.49
0.00
2.35
2.35
22,11,235
633,86,93,823
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 (%)
15.91
35.58
2.35
46.16
Promoters
Institutions
Non-Institutions
GDR Holders
DISTRIBUTION OF SHAREHOLDING BY SIZE AS ON MARCH 31, 2019
Category (Shares)
Upto 500
501 - 1000
1001 - 5000
5001 - 10000
10001 - 20000
Above 20000
Total
DEMATERIALISATION OF SHARES
Mode of Holding
NSDL
CDSL
Physical
Total
Holders
19,98,890
1,11,990
87,476
7,581
2,790
2,512
22,11,239
Shares
18,80,21,041
7,99,32,384
17,27,04,224
5,23,83,077
3,85,99,409
580,70,53,688
633,86,93,823
% of total Shares
2.97
1.26
2.72
0.83
0.61
91.61
100.00
%
95.91
2.85
1.24
100.00
227
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BUILD-UP OF EQUITY SHARE CAPITAL
The statement showing build-up of equity share capital is put up on the Company’s
website.
CORPORATE BENEFITS TO INVESTORS
DIVIDEND DECLARED FOR THE LAST 10 YEARS
Financial Year
Date of Dividend Declaration
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
October 7, 2009
June 18, 2010 (post bonus issue 1:1)
June 3, 2011
June 7, 2012
June 6, 2013
June 18, 2014
June 12, 2015
March 10, 2016
July 21, 2017
July 5, 2018 (post bonus issue 1:1)
Bonus Issues of fully Paid-Up Equity Shares
Financial Year
1980-81
1983-84
1997-98
2009-10
2017-18
Dividend per Equity Share of
` 10/- each (`)
13
7
8
8.5
9
9.5
10
10.50
11
6
Ratio
3:5
6:10
1:1
1:1
1:1
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 2018-19 is given below:
Particulars
Shares (nos.)
Value (` in crore)
NSE
85,04,668
963.81
BSE
6,29,591
70.86
Total
91,34,259
1,034.67
[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,
2019 represent 14,86,70,478 equity shares
constituting 2.35% 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.
228
RIL GDRs are exempted securities under
US Securities Law. RIL GDR programme
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.
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. 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.
RISK MANAGEMENT POLICY
WITH RESPECT TO COMMODITIES
INCLUDING THROUGH HEDGING
COMMODITIES EXPOSURE
•
The Company is exposed to price volatility
on various Petroleum, Petrochemical
and other Energy related commodities,
as part of its business operations. Due
to the dynamic markets, prices of such
Commodities fluctuate and can result
in Margin Risk. This policy prescribes
the guidelines for hedging Commodities
Price risks.
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 • HEDGING POLICY
Exposures are identified and measured
across the Company so that appropriate
hedging can be done on a Net basis. For
Commodities hedging, there exist Over the
Counter (OTC) and Exchange markets that
offer financial instruments (derivatives),
that enable managing the Price risk.
Strategic decisions regarding the timing
and the usage of derivatives instruments
such as Swaps / Futures / Options, shall be
taken based on various factors including
market conditions, physical inventories,
macro-economic situation. These decisions
and execution shall be done in line
with the Board approved Commodities
Risk Management framework. The Risk
Management Committee has oversight on
all hedging actions taken.
More detail on Risk Management are
covered under the Enterprise Risk
Management section of the MD&A Report,
which forms part of Annual Report.
Exposure of the Company to commodity risks, which are material
Commodity Name
Exposure towards
particular commodity
(` in crore)
Crude
Middle Distillates
Light Distillates
Polymer
Petchem Intermediate
Polyester
Total
2,33,483
1,36,537
64,062
50,638
46,711
26,811
5,58,242
Exposure in Quantity
terms
towards the particular
commodity
(in 1000 Metric Ton)
70,029
30,360
14,098
5,730
6,587
2,643
% of such exposure hedged
through commodity derivatives
Domestic market
OTC Exchange
International market
OTC Exchange*
-
-
-
-
-
-
-
-
-
-
-
-
28%
45%
3%
-
-
-
15%
20%
20%
-
-
-
Total
43%
65%
23%
-
-
-
* Includes OTC transactions cleared through International Exchanges
PLANT LOCATIONS IN INDIA
REFINING & MARKETING
DTA Jamnagar Refinery
Village Meghpar / Padana, Taluka Lalpur,
Jamnagar – 361 280, Gujarat, India
SEZ Jamnagar Refinery
Unit of Reliance Jamnagar SEZ
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
SEZ Jamnagar Refinery
Unit of Reliance Jamnagar SEZ
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,
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
Hazira Manufacturing Division
Village Mora, P.O. Bhatha, Surat-Hazira
Road, Surat – 394 510, Gujarat, India
Vadodara Manufacturing Division
P. O. Petrochemicals, Vadodara – 391 346,
Gujarat, India
Hoshiarpur Manufacturing Division
Dharamshala Road, V.P.O. Chohal, District
Hoshiarpur – 146 024, Punjab, India
DTA Jamnagar Refinery
Village Meghpar / Padana, Taluka Lalpur,
Jamnagar – 361 280, Gujarat, India
Vadodara Composites Division
Vadodara - Halol Expressway, Vill - Asoj,
Taluka - Waghodia, Vadodara,
Gujarat, 391 510
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 Fintech 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 Fintech Private
Limited.
229
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. ANY QUERY ON THE ANNUAL REPORT
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, the Company has credited
` 40.28 crore to the Investor Education
and Protection Fund (IEPF) pursuant to
the provisions of the Companies Act, 2013.
The cumulative amount transferred by the
Company to IEPF up to March 31, 2019 is
` 217 crore.
In accordance with the provisions of
Companies Act, 2013 the Company has
transferred 15,69,292 equity shares of
`10/- each, to the credit of IEPF Authority,
on August 3, 2018, 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. July 9,
2018. 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 2011-12.
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 5, 2018) and details of shares
transferred to IEPF during financial year
2018-19. The aforesaid details are put on
the Company’s website.
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.
Due dates for transfer to IEPF, of unclaimed / unpaid dividends for the financial year 2011-12 and thereafter:
FY ended
March 31, 2012
March 31, 2013
March 31, 2014
March 31, 2015
March 31, 2016
March 31, 2017
March 31, 2018
Declaration Date
June 7, 2012
June 6, 2013
June 18, 2014
June 12, 2015
March 10, 2016
July 21, 2017
July 5, 2018
Due Date
July 13, 2019
July 12, 2020
July 24, 2021
July 18, 2022
April 15, 2023
August 26, 2024
August 4, 2025
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, 2018
Less: Number of shareholders who approached the Company
for transfer of shares (which number is the same as shares
transferred from suspense account during the year)
Less: 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, 2019
Number of
Shareholders
Number of equity
shares
Number of equity
shares
Number of
Shareholders
(phase wise
transfers)
96
0
0
96
2,616
97,760
87,93,682
0
0
3,559
3,21,033
4,143
2,13,524
2,616
90,058
82,59,125
The voting rights on the shares in the suspense account shall remain frozen till the rightful owners claim the shares.
230
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 WEBLINK FOR THE MATTERS REFERRED IN THIS REPORT ARE AS UNDER
Particulars
Website link
http://www.ril.com/DownloadFiles/IRStatutory/Familiarisation-Programme-for-Independent-Directors.pdf
http://www.ril.com/OurCompany/Leadership/BoardOfDirectors.aspx
http://www.ril.com/OurCompany/Leadership/BoardCommittees.aspx
http://www.ril.com/DownloadFiles/IRStatutory/Material-Subsidiaries.pdf
http://www.ril.com/DownloadFiles/IRStatutory/Policy-on-Materiality-of-RPT.pdf
http://www.ril.com/DownloadFiles/IRStatutory/Policy-for-Selection-of-Directors.pdf
https://www.ril.com/DownloadFiles/IRStatutory/Code-of-Conduct.pdf
http://www.ril.com/DownloadFiles/IRStatutory/ourcode.pdf
http://www.ril.com/DownloadFiles/IRStatutory/Remuneration-Policy-for-Directors.pdf
Composition of Board of Directors and
Profile of Directors
Composition of various Committees of the
Board and their terms of reference
Familarisation Programme for
Independent Directors
Code of Conduct
Our Code
Remuneration Policy for Directors,
Key Managerial Personnel and other
employees
Policy for selection of Directors and
determining Directors’ independence
Policy for determining Material
Subsidiaries
Policy on Materiality of Related Party
Transactions and on dealing with Related
Party Transactions
Policy on Determination and Disclosure of
Materiality of Events and Information and
Web Archival Policy
Vigil Mechanism and Whistle- Blower Policy http://www.ril.com/DownloadFiles/IRStatutory/Vigil-Mechanism-and-Whistle-Blower-Policy.pdf
Quarterly, Half-yearly and Annual Financial
Results (from 2000 to 2019)
Presentation to institutional investors and
analysts (from 1999 to 2019)
Annual Report (from 1976 to 2019)
Chairman’s Communication (from 2002
to 2018)
ESOS Disclosure under SEBI (Share Based
Employee Benefits) Regulations, 2014 as
on March 31, 2019
Sustainability Reports
Details of unpaid and unclaimed amounts
lying with the Company as on date of last
Annual General Meeting (i.e. July 5, 2018)
and details of shares transferred to IEPF
during financial year 2018-19.
Build-up of Equity Share Capital
Shareholders’ Referencer
https://www.ril.com/DownloadFiles/IRStatutory/Build-up-of-Equity-Share-Capital.pdf
http://www.ril.com/DownloadFiles/IRForms/Shareholders-Referencer.pdf
http://www.ril.com/InvestorRelations/FinancialReporting.aspx
http://www.ril.com/InvestorRelations/Chairman-Communication.aspx
http://www.ril.com/ Sustainability/CorporateSustainability.aspx
http://www.ril.com/InvestorRelations/ShareholdersInformation.aspx
http://www.ril.com/DownloadFiles/IRStatutory/SEBI-Regulations-2006.pdf
http://www.ril.com/DownloadFiles/IRStatutory/SEBI-Regulations-2017.pdf
http://www.ril.com/DownloadFiles/IRStatutory/MaterialityPolicy.pdf
http://www.ril.com/InvestorRelations/FinancialReporting.aspx
http://www.ril.com/InvestorRelations/FinancialReporting.aspx
231
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. COMPLIANCE OF CORPORATE GOVERNANCE REQUIREMENTS SPECIFIED IN REGULATION 17 TO 27 AND
REGULATION 46(2)(b) TO (i) OF LISTING REGULATIONS
Particulars
Regulation Compliance
Key Compliance observed
Sr.
No.
1.
Board of Directors
17
Status Yes / No
/ N.A.
Yes
• Composition and Appointment of Directors
• Meetings and quorum
• 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 by CEO and CFO
• Risk assessment and risk management plan
• Performance evaluation of Independent Directors
• Recommendation of Board for each item of special business
• Directorships in listed entities
• Composition
• Meetings and quorum
• Chairperson present at Annual General Meeting
• Role of the Committee
• Composition
• Chairperson present at Annual General Meeting
• Meetings and quorum
• Role of the Committee
• Composition
• Chairperson present at Annual General Meeting
• Meetings and quorum
• Role of the Committee
• Composition
• Meetings and quorum
• Role of the Committee
• 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
Prior approval including omnibus approval of Audit Committee for Related Party
Transactions.
Periodical review of Related Party Transactions
Disclosure on Related Party Transactions
Appointment of Company’s Independent Director on the Board of material
subsidiary
Review of financial statements and investments 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
Annual Secretarial Audit Report and Annual Secretarial Compliance Report
•
• No material unlisted subsidiary incorporated in India
•
•
•
•
•
Maximum directorships and tenure
Meetings of Independent Directors
Cessation and appointment of Independent Directors
Familiarisation of Independent Directors
Declaration from Independent Directors that he / she meets the criteria of
independence
Directors and Officers insurance for all the Independent Directors
2.
3.
4.
5.
6.
7.
8.
9.
Maximum Number of
Directorships
Audit Committee
17A
18
Nomination and
Remuneration
Committee
Stakeholders
Relationship
Committee
Risk Management
Committee
Vigil Mechanism
Related Party
Transactions
19
20
21
22
23
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Subsidiaries of the
Company
24
Yes
10.
Secretarial Audit
11.
Obligations with
respect to Independent
Directors
24A
25
Yes
Yes
232
•
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 Particulars
Regulation Compliance
Key Compliance observed
Sr.
No.
12.
Obligations with
respect to employees
including Senior
Management, Key
Managerial Personnel,
Directors and
Promoters
13.
14
Other Corporate
Governance
requirements
Website
Status Yes / No
/ N.A.
Yes
Yes
Yes
26
27
46(2)(b)
to (i)
•
•
•
•
•
•
•
•
•
•
•
•
•
•
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 Personnel, Director and
Promoter
Compliance with discretionary requirements
Filing of quarterly compliance report on Corporate Governance
Terms and conditions of appointment of Independent Directors
Composition of various Committees of the Board of Directors
Code of Conduct of Board of Directors and Senior Management Personnel
Details of establishment of Vigil Mechanism / Whistle-blower policy
Policy on dealing with Related Party Transactions
Policy for determining material subsidiaries
Details of familiarisation programmes imparted to Independent Directors
NO DISQUALIFICATION CERTIFICATE FROM COMPANY SECRETARY IN PRACTICE
Certificate from Dr. K. R. Chandratre, Practising Company Secretary, confirming that none of the Directors on the Board of the Company
have been debarred or disqualified from being appointed or continuing as directors of companies by the Securities and Exchange Board
of India, Ministry of Corporate Affairs, or any such other Statutory Authority, as stipulated under Regulation 34 of the Listing Regulations, is
attached to this Report.
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, copy of which is attached to this Report. 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.
COMPLIANCE CERTIFICATE OF THE AUDITORS
Certificate from the Company’s Auditors, S R B C & CO LLP and D T S & Associates, Chartered Accountants, confirming compliance with
conditions of Corporate Governance, as stipulated under Regulation 34 of the Listing Regulations, is attached to this Report.
CERTIFICATE ON COMPLIANCE WITH CODE OF CONDUCT
I hereby confirm that the Company has obtained from all the members of the Board and Senior Management Personnel, affirmation that
they have complied with the ‘Code of Conduct’ and ‘Our Code’ in respect of the financial year 2018-19.
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 18, 2019
233
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. NO DISQUALIFICATION CERTIFICATE FROM COMPANY SECRETARY IN PRACTICE
To,
The Members
Reliance Industries Limited
3rd Floor, Maker Chambers IV, 222,
Nariman Point, Mumbai 400 021
I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Reliance Industries Limited
having CIN L17110MH1973PLC019786 and having registered office at 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400021
Maharashtra, India (hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose of issuing this
Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Clause 10(i) of the Securities Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
In my opinion and to the best of my information and according to the verifications (including Directors Identification Number (DIN)
status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its officers, I hereby
certify that none of the Directors on the Board of the Company as stated below for the financial year ending on 31 March, 2019, have been
debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India,
Ministry of Corporate Affairs, or any such other Statutory Authority.
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Name of the Directors
Director Identification Number
Date of appointment in the Company
Mukesh Dhirubhai Ambani
Mansingh Laxmidas Bhakta
Yogendra Premkrishna Trivedi
Dipak Chand Jain
Raghunath Anant Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Shumeet Banerji
Arundhati Bhattacharya
Nita Mukesh Ambani
Nikhil Rasiklal Meswani
Hital Rasiklal Meswani
Madhusudana Sivaprasad Panda
Pawan Kumar Kapil
00001695
00001963
00001879
00228513
00074119
06646490
07175393
02787784
02011213
03115198
00001620
00001623
00012144
02460200
01.04.1977
27.09.1977
16.04.1992
04.08.2005
09.06.2007
20.12.2013
12.06.2015
21.07.2017
17.10.2018
18.06.2014
26.06.1986
04.08.1995
21.08.2009
16.05.2010
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of the
Company. My responsibility is to express an opinion on these, based on my verification. This certificate is neither an assurance as to
the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the
Company.
Dr. K.R.Chandratre
FCS No. 1370, C P No. 5144
Pune,
April 18, 2019
234
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 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 March 31, 2019
and to the best of our knowledge and belief:
i.
ii.
these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be
misleading;
these statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting
standards, applicable laws and regulations.
2. 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.
ii.
there are no significant changes in internal control over financial reporting during the year;
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.
Mukesh D. Ambani
Chairman and Managing Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Mumbai, April 18, 2019
235
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
INDEPENDENT AUDITOR’S 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, 2019. 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 in the form of an opinion whether the Company has complied with the
condition of Corporate Governance, as stipulated in the Listing Regulation.
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 auditor’s 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.
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, 2019, referred to in paragraph 1 above.
236
CORPORATE GOVERNANCE REPORT Reliance Industries Limited | Integrated Annual Report 2018–19 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)
T P Ostwal
Partner
Membership No.: 030848
Place: Mumbai
Date: April 18, 2019
For S R B C & CO LLP
Chartered Accountants
Registration No.: 324982E / E300003
Vikas Kumar Pansari
Partner
Membership No.: 093649
Place: Mumbai
Date: April 18, 2019
237
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BOARD’S REPORT
Dear Members,
The Board of Directors are pleased to present the Company’s Forty-second Annual Report (Post-IPO)
and the Company’s audited financial statements (standalone and consolidated) for the financial
year ended March 31, 2019.
FINANCIAL RESULTS
The Company’s financial performance for the year ended March 31, 2019 is summarised below:
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/Others
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)
STANDALONE
CONSOLIDATED
2018-19
2017-18
2018-19
2017-18
`
crore
US$
million*
`
crore
US$
million*
`
crore
US$
million*
47,367
9,440
2,764
35,163
59,674
94,837
-
6,849
1,365
399
5,085
8,629
13,714
-
45,725
8,953
3160
33,612
(3,503)
30,109
-
7,016
1,374
485
5,157
(537)
4,620
-
55,227
11,683
3,707
39,837
58,765
98,602
241
7,986
1,689
536
5,761
8,498
14,259
35
`
crore
49,426#
10,098
3,248
36,080
(1,635)
34,445
9
US$
million*
7,584
1,549
498
5,537
(251)
5,286
1
94,837
13,714
30,109
4,620
98,361
14,224
34,436
5,285
31,569
-
-
-
-
-
-
5,550
-
-
-
-
-
-
34,506
-
-
-
4
-
-
5,999
-
-
-
1
-
-
15,533
-
-
-
-
(639)
(15)
2,580
-
-
-
-
(92)
(2)
14,467
-
327
10
4
(283)
(144)
2,413
-
50
2
1
(43)
(22)
1,26,406
19,264
64,619
10,620 1,13,240
16,710
48,817
7,686
-
30,000
-
4,124
3,554
728
88,000
-
4,338
-
596
514
105
13,711
-
25,000
-
4,134
3,255
661
31,569
-
3,836
-
634
499
101
5,550
15
30,000
-
4,147
3,554
728
74,796
2
4,338
-
600
514
105
11,151
221
25,000
2
4,145
3,255
661
15,533
34
3,836
-
636
499
101
2,580
* 1 US$ = ` 69.155 Exchange Rate as on March 31, 2019 (1 US$ = ` 65.175 as on March 31, 2018)
# Includes exceptional item of ` 1,087 crore
^ Pertaining to previous financial year
RESULTS OF OPERATIONS AND THE STATE OF COMPANY’S AFFAIRS
THE HIGHLIGHTS OF THE COMPANY’S PERFORMANCE (STANDALONE) FOR THE YEAR ENDED MARCH 31, 2019 ARE AS UNDER:
• Value of sales and services increased by 27.2% to ` 4,00,986 crore (US$ 58 billion).
• Exports increased by 27.4% to ` 2,24,391 crore (US$ 32.4 billion).
• PBDIT increased by 12.9% to ` 67,676 crore (US$ 9.8 billion).
• Profit Before Tax increased by 3.6% to ` 47,367 crore (US$ 6.8 billion).
• Cash Profit increased by 4.6% to ` 48,485 crore (US$ 7.0 billion).
• Net Profit increased by 4.6% to ` 35,163 crore (US$ 5.1 billion).
• Gross Refining Margin stood at US$ 9.2 / bbl for the year ended March 31, 2019.
238
Reliance Industries Limited | Integrated Annual Report 2018–19
FINANCIAL PERFORMANCE REVIEW
AND ANALYSIS (CONSOLIDATED)
The Company achieved a consolidated
revenue of ` 622,809 crore ($ 90.1 billion),
an increase of 44.6% as compared to
` 430,731 crore in the previous year.
Increase in revenue was primarily on
account of higher product price realization
led by 22% y-o-y increase in average Brent
crude price, and increased petrochemical
volumes. Robust growth in Retail and
Digital Services business also contributed
to higher revenues. Operating Profit
before other income, depreciation and
exceptional items increased by 30.8%
on a y-o-y basis to ` 83,918 crore ($12.1
billion). Volume growth in Petrochemicals
and rapidly increasing contribution from
consumer businesses led to significant rise
in operating profit for the year.
DIVIDEND
The Board of Directors has recommended a
dividend of ` 6.50 per equity share of ` 10/-
each (@65%) for the financial year ended
March 31, 2019 (last year ` 6/- per equity
share). The payout is expected to be ` 4,641
crore (inclusive of dividend distribution
tax of ` 789 crore). The dividend payment
is subject to approval of members at the
ensuing Annual General Meeting.
The dividend recommended is in
accordance with the Company’s Dividend
Distribution Policy. The Dividend
Distribution Policy of the Company
is annexed herewith and marked as
Annexure I to this Report and the same
is put up on the Company’s website and
can be accessed at http://www.ril.com/
DownloadFiles/IRStatutory/Dividend-
Distribution-Policy.pdf
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.
DEVELOPMENTS IN BUSINESS
OPERATIONS / PERFORMANCE
The developments in business
operations / performance of the Company
and its major subsidiaries consolidated
with the Company are as below:
REFINING & MARKETING BUSINESS
In FY 2018-19, refining EBIT decreased by
19.8% y-o-y to ` 19,868 crore, impacted
by volatile crude prices, multiyear low
gasoline and naphtha cracks. Weakness
in light distillate cracks was partly offset
by firm middle distillate cracks. The
Company’s refining margins declined to
$9.2/bbl, however, maintained a significant
$4.3/bbl premium over the Singapore
complex margins. With a countrywide
operational network of 1,372 fuel retail
outlets, the Company covers all major
highways across the country. Supported
by the network presence and the growing
fleet customer count, Company’s
outlets registered an outstanding pump
throughput of more than double the
industry average during the year.
PETROCHEMICALS BUSINESS
In FY 2018-19, petrochemicals business
delivered its best ever performance with
the segment achieving its highest ever
production level of 37.7 MMT, up 16% y-o-y.
Petrochemicals segment EBIT increased
by 51.9% to its highest level of ` 32,173
crore. EBIT margin increased to 18.7% from
16.9%, aided by strong integrated polyester
chain margins. With the commencement of
ethane cracking at Nagothane, all the key
components of petrochemical investment
cycle are now fully contributing to the
earnings.
OIL AND GAS (EXPLORATION &
PRODUCTION) BUSINESS
In FY 2018-19, revenues decreased by 3.8%
to ` 5,005 crore. Volumes from domestic
upstream fields and US shale were lower on
account of natural decline and slowdown
in development activity. Consequently,
upstream operations registered EBIT
of ` (1,379) crore. RIL is undertaking
development of three deepwater fields,
R-Cluster, Satellite- Cluster and D55 (MJ)
fields. These fields are expected to come
onstream from mid-2020 onwards. The
new development expects to leverage RIL’s
partnership with BP, existing infrastructure
in the Krishna-Godavari basin and current
downturn in the capital equipment and
services market. More than 200 wells are
on production in Reliance’s domestic
CBM block with production averaging
1 mmscmd this year.
RETAIL BUSINESS
Reliance Retail achieved a turnover of
` 1,30,566 crore in FY 2018-19, an increase
of 88.7% y-o-y. The business delivered an
EBIT of ` 5,546 crore for FY 2018-19, more
than doubling over previous year. EBIT
margin increased by 120 bps to 4.2% for
the year. During the year, Reliance Retail
added over 2,800 stores and now operates
10,415 retail stores in over 6,600 towns and
cities covering an area of 22 million sq. ft.
Reliance Retail operated 516 owned petro
retail outlets as on March 31, 2019.
DIGITAL SERVICES
Digital service business achieved revenue
of ` 46,506 crore, an increase of 94.5%
y-o-y. Segment EBIT increased by 176.7%
to ` 8,784 crore with EBIT margin of
18.9%. The company added 120.1 million
subscribers during the year, with year-end
subscribers’ base at 306.7 million. This was
driven by strong adoption of Jio services
across the country reflected by healthy
customer engagement metrics on data
and voice. The Board of Jio approved the
demerger of its passive infrastructure,
tower and fiber assets into two separate
Special Purpose Vehicles (SPVs). The
scheme of demerger was effective 31st
March 2019 post all requisite internal,
shareholder, debt holder and regulatory
239
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. approvals. The assets would be held by a
separate Securities and Exchange Board of
India registered Infrastructure Investment
Trusts (InvIT). This demerger deleverages
the balance sheet and establishes Jio
franchise as an asset-light, digital services
company.
MEDIA AND ENTERTAINMENT
Reliance’s flagship media company
Network18 Media & Investments Limited
continued on its growth trajectory, and
invested in key areas to fill whitespaces
or fortify its competitive position. Focus
during the year was on regional content,
while ad-monetisation witnessed
accelerated growth across broadcasting
and digital platforms and genres-news,
entertainment and film. Network18
reported revenues of ` 5,116 crore (growth
of 178% y-o-y), and EBIT of ` (52) crore on a
consolidated basis.
ACQUISITION OF SHARES AND
CONTROL OF DEN NETWORKS
LIMITED (DEN) AND HATHWAY
CABLE AND DATACOM LIMITED
(HATHWAY)
During the year, Digital Media Distribution
Trust (DMDT), of which Reliance Content
Distribution Limited, a wholly-owned
subsidiary of the Company is the sole
beneficiary, through six Special Purpose
Vehicles (SPVs), owned and controlled
by DMDT, acquired shares of and sole
control over Den Networks Limited and
Hathway Cable and Datacom Limited and
also acquired indirect control over GTPL
Hathway Limited and Hathway Bhawani
Cabletel and Datacom Limited.
CREDIT RATING
The Company’s financial discipline and prudence is reflected in the strong credit ratings
ascribed by rating agencies as given below:
Instrument
Rating
Agency
International Debt
S&P
Rating
BBB+
Outlook
Remarks
Stable
Two notches above India’s
sovereign rating
International Debt
Moody’s
Baa2
Stable
Long-Term Debt
CRISIL
CRISIL AAA
Stable
Long-Term Debt
India Ratings IND AAA
Stable
At par with India’s
sovereign rating
Highest rating awarded by
CRISIL
Highest rating awarded by
India Ratings
CONSOLIDATED FINANCIAL
STATEMENT
In accordance with the provisions of the
Companies Act, 2013 (“the Act”) and Ind AS
110 – Consolidated Financial Statements
read with Ind AS 28 Investments in
Associates and Joint Venture 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 providing details of
performance and 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 up on the
Company’s website and can be accessed
at http://www.ril.com/InvestorRelations/
FinancialReporting.aspx. The financial
statements of the subsidiaries, as required,
are put up on the Company’s website
and can 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 is put up on the Company’s website
and can be accessed at https://www.ril.
com/DownloadFiles/IRStatutory/Material-
Subsidiaries.pdf
SECRETARIAL STANDARDS
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.
DIRECTORS’ RESPONSIBILITY
STATEMENT
Your Directors state that:
a)
b)
c)
in the preparation of the annual
accounts for the year ended March 31,
2019, the applicable accounting
standards read with requirements
set out under Schedule III to the Act
have been followed and there are no
material departures from the same;
the Directors have selected such
accounting policies and applied them
consistently and made judgements
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, 2019 and of
the profit of the Company for the year
ended on that date;
the Directors have taken proper and
sufficient care for the maintenance
of adequate accounting records in
accordance with the provisions of
the Act for safeguarding the assets
of the Company and for preventing
and detecting fraud and other
irregularities;
d) the Directors have prepared the annual
accounts on a going concern basis;
e)
the Directors have laid down internal
financial controls to be followed by
the Company and that such internal
240
BOARD’S REPORTReliance Industries Limited | Integrated Annual Report 2018–19 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 part of the
Annual 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.
BUSINESS RESPONSIBILITY
REPORT
As stipulated under the Listing Regulations,
the Business Responsibility Report
describing the initiatives taken by the
Company from an environmental, social
and governance perspective is attached as
a part of the Annual Report.
CONTRACTS OR ARRANGEMENTS
WITH RELATED PARTIES
All contracts / arrangements / transactions
entered by the Company during the
financial year with related parties were
in its ordinary course of business and on
an arm’s length basis. During the year,
the Company had not entered into any
contract / arrangement / transaction with
related parties which could be considered
material in accordance with the policy
of the Company on materiality of related
party transactions.
The Policy on Materiality of Related Party
Transactions and on dealing with Related
Party Transactions as approved by the
Board 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
There were no materially significant
related party transactions which could
have potential conflict with interest of the
Company at large.
Members may refer Note 31 to the
Standalone Financial Statement which sets
out related party disclosures pursuant to
Ind AS.
CORPORATE SOCIAL
RESPONSIBILITY (CSR)
During the year under review, the
Company has won the Golden Peacock
Global Award 2018 for the success of its
Corporate Social Responsibility initiatives.
This is the third time the Company won
the award highlighting its commendable
work under CSR ambit. The award is to
recognise the transformative work done by
Reliance Foundation (RF), the CSR arm of
the Company. The Award instituted by the
Institute of Directors (IOD), India in 1991,
is regarded as a benchmark of Corporate
Excellence worldwide. Under the able
leadership of its Founder and Chairperson,
Smt. Nita M. Ambani, RF has touched the
lives of around 26 million people across
India covering more than 18,000 villages
and 200 urban locations.
The Corporate Social Responsibility and
Governance (“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. There has not been any change in
the policy during the current year.
The CSR Policy is put up on the Company’s
website and can be accessed 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 including sustainable
development of water and land
resources, diversification of livelihoods
and access to knowledge resources
through digital platforms.
• Health: Promoting healthcare across
all levels, including preventive health
care and sanitation through improved
access, awareness and health seeking
behaviour.
• Education: Setting up of an Institution
of Eminence for higher education in the
country, access to quality education,
training and skill enhancement
including employability enhancing
vocational skills among youth.
• Sports for Development: Long-term
commitment towards development
of grassroots sports in the country
through training, mentoring and other
development programmes for the
youth.
• Disaster Response: Managing and
responding to disaster situations
through appropriate relief measures.
• Arts, Culture and Heritage: Protection
and promotion of India’s art, culture and
heritage.
• Environment: Environmental
sustainability, ecological balance,
conservation of natural resources and
promoting biodiversity.
The Company also undertakes other
need-based initiatives in compliance with
Schedule VII to the Act.
During the year, the Company spent ` 849
crore (around 2.09 % of the average net
profits of last three financial years) on CSR
activities.
The annual report on CSR activities
is annexed herewith and marked as
Annexure III to this Report.
RISK MANAGEMENT
The 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
241
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. (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 Management’s Discussion and
Analysis section, which forms part of the
Annual Report.
INTERNAL FINANCIAL CONTROLS
Internal Financial Controls are an
integrated part of the risk management
process, addressing financial and financial
reporting risks. The internal financial
controls have been documented, digitised
and embedded in the business processes.
Assurance on the effectiveness of internal
financial controls is obtained through
management reviews, control self-
assessment, continuous monitoring by
functional experts as well as testing of the
internal financial control systems by the
internal auditors and statutory auditors
during the course of their audits. The
Company believes that these systems
provide reasonable assurance that
Company’s 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.K. Kapil and Smt. Nita M.
Ambani, 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 (“HRNR”)
242
Committee has recommended their
re-appointment.
Prof. Ashok Misra demitted office as an
Independent Director of the Company w.e.f.
October 17, 2018. The Board places on
record its appreciation towards valuable
contribution made by Prof. Ashok Misra
during his tenure as a Director of the
Company.
The term of office of Shri R.S. Gujral as
an Independent Director, will expire on
June 11, 2020. The Board of Directors,
based on the performance evaluation
and as per the recommendation of the
HRNR Committee has recommended
re-appointment of Shri R.S. Gujral, 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 Board considers that, given his
background, experience and contributions
made by him during his tenure, the
continued association of Shri R.S. Gujral
would be beneficial to the Company.
The Board of Directors, on
recommendation of the HRNR Committee,
has:
(a) Appointed Smt. Arundhati
Bhattacharya as an Additional Director,
to be an Independent Director,
effective October 17, 2018;
(b) Re-appointed Shri P.M.S. Prasad as
Executive Director for a period of five
years effective August 21, 2019; and
(c) Appointed Smt. Savithri Parekh
as Joint Company Secretary and
Compliance Officer effective March 29,
2019.
The Company has received declarations
from all the Independent Directors of the
Company confirming that they meet the
criteria of independence prescribed under
the Act and the Listing Regulations.
The Company has devised the following
Policies viz:
a) Policy for selection of Directors and
determining Directors’ independence;
and
b) Remuneration Policy for Directors,
Key Managerial Personnel and other
employees.
The aforesaid policies are put up on the
Company’s website and can be accessed
at http://www.ril.com/DownloadFiles/
IRStatutory/Policy-for-Selection-of-
Directors.pdf and http://www.ril.com/
DownloadFiles/IRStatutory/Remuneration-
Policy-for-Directors.pdf
The Policy for selection of Directors and
determining Directors’ independence
sets out the guiding principles for the
HRNR 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.
The Policy also provides for the factors
in evaluating the suitability of individual
Board members with diverse background
and experience that are relevant for the
Company’s operations.
There has been no major change in the
aforesaid policy during the year. The
criteria of independence, number of
directorships and committee memberships
prescribed in the policy has been changed
to align the policy with the amendment
made in this regard in the Act and the
Listing Regulations.
The Remuneration Policy for Directors, Key
Managerial Personnel and other employees
sets out the guiding principles for the HRNR
Committee for recommending to the Board
the remuneration of the Directors, Key
Managerial Personnel and other employees
of the Company. There has been no change
in the policy during the current year.
PERFORMANCE EVALUATION
The Company has 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.
In accordance with the manner specified
by the HRNR Committee, the Board carried
out annual performance evaluation of
the Board, its Committees and Individual
BOARD’S REPORTReliance Industries Limited | Integrated Annual Report 2018–19 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.
(II) COST AUDITORS
The Board has appointed following Cost
Accountants as Cost Auditors for conducting
the audit of cost records of products
and services of the Company for various
segments for the financial year 2019-20
under section 148 of the Act read with
the Companies (Cost Records and Audit)
Rules, 2014:
(i) Textiles Business - Kiran J. Mehta & Co;
(ii) Chemicals Business - Diwanji & Co.,
K.G. Goyal & Associates, V.J. Talati & Co.,
Suresh D. Shenoy, Shome & Banerjee
and Dilip M. Malkar & Co.;
(iii) Polyester Business - V.J. Talati & Co., Suresh
D. Shenoy and V. Kumar & Associates;
(iv) Electricity Generation - Diwanji & Co.
and Kiran J. Mehta & Co.;
(v) Petroleum Business – Suresh D. Shenoy;
(vi) Oil & Gas Business – V.J. Talati & Co. and
Shome & Banerjee;
(vii) Gasification-Suresh D. Shenoy; and
(viii) Composite Solution - Diwanji & Co.
Shome & Banerjee, Cost Accountants,
were nominated as the Company’s Lead
Cost Auditors.
(III) SECRETARIAL AUDITOR
The Board had appointed Dr. K.R.
Chandratre, Practising Company Secretary,
to conduct Secretarial Audit for the financial
year 2018-19. The Secretarial Audit Report
for the financial year ended March 31, 2019
is annexed herewith and marked as
Annexure IV to this Report. The Secretarial
Audit Report does not contain any
qualification, reservation or adverse remark.
Directors. The Independent Directors carried
out annual performance evaluation of 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. A consolidated report was
shared with the Chairman of the Board
for his review and giving feedback to each
Director.
EMPLOYEES’ STOCK OPTION
SCHEMES
The HRNR Committee inter alia administers
and monitors Employees’ Stock Option
Schemes of the Company. No grants have
so far been made under Employee Stock
Option Scheme - 2017. Employee Stock
Option Scheme - 2006 (“ESOS - 2006”) has
been withdrawn during the financial year
2017-18. However options granted under
ESOS - 2006, which are in force continue to
be governed by ESOS - 2006.
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 are put up on the Company’s
website and can be accessed at
http://www.ril.com/DownloadFiles/
IRStatutory/SEBI-Regulations-2006.pdf
and http://www.ril.com/DownloadFiles/
IRStatutory/SEBI-Regulations-2017.pdf
AUDITORS AND AUDITORS’ REPORT
(I) STATUTORY AUDITORS
S R B C & CO LLP, Chartered Accountants and
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. The Auditors have confirmed that
they are not disqualified from continuing as
Auditors of the Company.
DISCLOSURES
(I) MEETINGS OF THE BOARD
Seven 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.
(II) 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.
(III) CORPORATE SOCIAL
RESPONSIBILITY AND GOVERNANCE
COMMITTEE
The Corporate Social Responsibility
and Governance (“CSR&G”) Committee
comprises Shri Yogendra P. Trivedi
(Chairman), Shri Nikhil R. Meswani,
Dr. Raghunath A. Mashelkar and
Dr. Shumeet Banerji.
(IV) HUMAN RESOURCES, NOMINATION
AND REMUNERATION COMMITTEE
The Human Resources, Nomination and
Remuneration Committee comprises Shri
Adil Zainulbhai (Chairman), Shri Yogendra
P. Trivedi, Dr. Raghunath A. Mashelkar, Shri
Raminder Singh Gujaral and Dr. Shumeet
Banerji
(V) VIGIL MECHANISM
The Company 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 Ethics & Compliance Task Force or to
the Chairman of the Audit Committee.
The Vigil Mechanism and Whistle-blower
policy is put up on the Company’s website
and can be accessed at: http://www.ril.
com/DownloadFiles/IRStatutory/Vigil-
Mechanism-and-Whistle-Blower-Policy.pdf
243
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. (VI) PREVENTION OF SEXUAL
HARASSMENT AT WORKPLACE
As per the requirement of the Sexual
Harassment of Women at Workplace
(Prevention, Prohibition & Redressal)
Act, 2013 (“POSH Act”) and Rules made
thereunder, the Company has formed
Internal Complaints Committee for
various work places to address complaints
pertaining to sexual harassment in
accordance with the POSH Act. The
Company has a policy for prevention of
Sexual Harassment, which ensures a free
and fair enquiry process with clear timelines
for resolution. To build awareness in this
area, the Company has been conducting
online programme on a continuous basis.
(VII) PARTICULARS OF LOANS GIVEN,
INVESTMENTS MADE, GUARANTEES
GIVEN AND SECURITIES PROVIDED
Particulars of loans given, investments
made, guarantees given and securities
provided along with the purpose for which
the loan or guarantee or security is proposed
to be utilised by the recipient are provided
in the Standalone Financial Statement
(Please refer Note 2, 3, 6, 9, 31 and 37 to the
Standalone Financial Statement).
(VIII) DEBENTURES
The Company has issued on private
placement basis and allotted, Unsecured,
Redeemable Non-convertible Debentures
(NCDs) aggregating `19,000 crore (paid up
to the extent of ` 17,000 crore) during the
financial year 2018-19. The funds raised
through issuance of NCDs have been utilised
for refinancing of existing borrowings and
other purpose in the ordinary course of
business.
(IX) CONSERVATION OF ENERGY,
TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND
OUTGO
The particulars relating to conservation
of energy, technology absorption, foreign
exchange earnings and outgo, as required to
be disclosed under the Act, are provided in
Annexure V to this Report.
(X) ANNUAL RETURN
As required under Section 134(3)(a)of the
Act, the Annual Return is put up on the
Company’s website and can be accessed
at http://www.ril.com/DownloadFiles/
IRStatutory/Annual Return 2018-19.pdf
and http://www.ril.com/DownloadFiles/
IRStatutory/Annual Return 2017-18.pdf
(XI) PARTICULARS OF EMPLOYEES AND
RELATED DISCLOSURES
In terms of the provisions of Section
197(12) of the Act read with Rules 5(2) and
5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel)
Rules, 2014, a statement showing the
names of top ten employees in terms of
remuneration drawn and names and other
particulars of the employees drawing
remuneration in excess of the limits set out
in the said rules 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 forms part of this Report.
Having regard to the provisions of the
second 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.
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.
•
•
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 Schemes
referred to in this Report.
• The Company does not have any scheme
of provision of money for the purchase
of its own shares by employees or by
trustees for the benefit of employees.
• Neither the Managing Director nor the
Whole-time Directors of the Company
receive any remuneration or commission
from any of its subsidiaries.
• No significant or material orders
were passed by the Regulators or
Courts or Tribunals which impact the
going concern status and Company’s
operations in future.
• No fraud has been reported by the
Auditors to the Audit Committee or the
Board.
• There is no Corporate Insolvency
Resolution Process initiated under the
Insolvency and Bankruptcy Code, 2016.
ACKNOWLEDGEMENT
The Board of Directors wish to place on
record its deep sense of appreciation
for the committed services by all the
employees of the Company. The Board of
Directors would also 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.
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 18, 2019
244
BOARD’S REPORTReliance Industries Limited | Integrated Annual Report 2018–19 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 objective of this Policy is to establish
the parameters to be considered by the
Board of Directors of the Company before
declaring or recommending dividend.
The Company has had an uninterrupted
dividend payout since listing. In future,
the Company would endeavour to pay
sustainable dividend keeping in view the
Company’s policy of meeting the long-
term growth objectives from internal cash
accruals.
CIRCUMSTANCES UNDER WHICH THE
SHAREHOLDERS MAY OR MAY NOT
EXPECT DIVIDEND
The Board of Directors of the Company,
while declaring or recommending dividend
shall ensure compliance with statutory
requirements under applicable laws
including the provisions of the Companies
Act, 2013 and Listing Regulations. The
Board of Directors, while determining the
dividend to be declared or recommended
shall take into consideration the advice of
the executive management of the Company
and the planned and further investments
for growth apart from other parameters set
out in this Policy.
The Board of Directors of the Company may
not declare or recommend dividend for
a particular period if it is of the view that
it would be prudent to conserve capital
for the then ongoing or planned business
expansion or other factors which may be
considered by the Board.
PARAMETERS TO BE CONSIDERED
BEFORE RECOMMENDING DIVIDEND
The Board of Directors of the Company
shall consider the following financial /
internal parameters while declaring or
recommending dividend to shareholders:
• Profits earned during the financial year
• Retained Earnings
• Earnings outlook for next three to five
years
• Expected future capital / liquidity
requirements
• Any other relevant factors and material
events.
The Board of Directors of the Company
shall consider the following external
parameters while declaring or
recommending dividend to shareholders:
• Macro-economic environment -
Significant changes in macro-economic
environment materially affecting the
businesses in which the Company is
engaged in the geographies in which the
Company operates
• Regulatory changes – Introduction
of new regulatory requirements or
material changes in existing taxation
or regulatory requirements, which
significantly affect the businesses in
which the Company is engaged
• Technological changes which
necessitate significant new investments
in any of the businesses in which the
Company is engaged.
UTILISATION OF RETAINED EARNINGS
The Company shall endeavor to utilise
the retained earnings in a manner which
shall be beneficial to the interests of the
Company and also its shareholders.
The Company may utilise the retained
earnings for making investments for
future growth and expansion plans, for the
purpose of generating higher returns for
the shareholders or for any other specific
purpose, as approved by the Board of
Directors of the Company.
PARAMETERS THAT SHALL BE
ADOPTED WITH REGARD TO VARIOUS
CLASSES OF SHARES
The Company has issued only one class
of shares viz. equity shares. Parameters
for dividend payments in respect of any
other class of shares will be as per the
respective terms of issue and in accordance
with the applicable regulations and will
be determined, if and when the Company
decides to issue other classes of shares.
CONFLICT IN POLICY
In the event of any conflict between this
Policy and the provisions contained in the
Listing Regulations, the Regulations shall
prevail.
AMENDMENTS
The Board may, from time to time, make
amendments to this Policy to the extent
required due to change in applicable laws
and Listing Regulations or as deemed fit on
a review.
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 18, 2019
245
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 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 2018-19:
Sr.
No. Name of the Company
C-Square Info Solutions Private Limited
1.
Dronagiri Bokadvira East Infra Limited
2.
Dronagiri Bokadvira North Infra Limited
3.
Dronagiri Bokadvira South Infra Limited
4.
Dronagiri Bokadvira West Infra Limited
5.
Dronagiri Dongri East Infra Limited
6.
Dronagiri Dongri North Infra Limited
7.
Dronagiri Dongri South Infra Limited
8.
9.
Dronagiri Dongri West Infra Limited
10. Dronagiri Funde East Infra Limited
11. Dronagiri Funde North Infra Limited
12. Dronagiri Funde South Infra Limited
13. Dronagiri Funde West Infra Limited
14. Dronagiri Navghar East Infra Limited
15. Dronagiri Navghar North First Infra
Limited
16. Dronagiri Navghar North Infra Limited
17. Dronagiri Navghar North Second Infra
Limited
18. Dronagiri Navghar South First Infra
Limited
19. Dronagiri Navghar South Infra Limited
20. Dronagiri Navghar South Second Infra
Limited
21. Dronagiri Navghar West Infra Limited
22. Dronagiri Pagote East Infra Limited
23. Dronagiri Pagote North First Infra
Limited
24. Dronagiri Pagote North Infra Limited
25. Dronagiri Pagote North Second Infra
Limited
26. Dronagiri Pagote South First Infra
Limited
27. Dronagiri Pagote South Infra Limited
28. Dronagiri Pagote West Infra Limited
29. Dronagiri Panje East Infra Limited
30. Dronagiri Panje North Infra Limited
31. Dronagiri Panje South Infra Limited
32. Dronagiri Panje West Infra Limited
33. Genesis Colors Limited
34. Genesis La Mode Private Limited
246
Sr.
No. Name of the Company
35. Genesis Luxury Fashion Private Limited
36. GLB Body Care Private Limited
37. GLF Lifestyle Brands Private Limited
38. GML India Fashion Private Limited
39. Grab A Grub Services Private Limited
Indiavidual Learning Private Limited
40.
41. Jio Estonia OÜ
42. Jio Digital Fibre Private Limited
43. Kalamboli East Infra Limited
44. Kalamboli North First Infra Limited
45. Kalamboli North Infra Limited
46. Kalamboli North Second Infra Limited
47. Kalamboli North Third Infra Limited
48. Kalamboli South First Infra Limited
49. Kalamboli South Infra Limited
50. Kalamboli West Infra Limited
51. M Entertainments Private Limited
52. Mindex 1 Limited
53. New Emerging World of Journalism
Private Limited
54. Radisys B.V.
55. Radisys Cayman Limited
56. Radisys Canada Inc
57. Radisys Convedia (Ireland) Limited
58. Radisys Corporation
59. Radisys GmbH
60. Radisys India Private Limited
61. Radisys International LLC
62. Radisys International Singapore Pte. Ltd
63. Radisys Poland sp. z.o.o
64. Radisys Spain S.L.U.
65. Radisys Systems Equipment Trading
(Shanghai) Co., Ltd.
66. Radisys Technologies (Shenzhen) Co.,
Ltd.
67. Radisys UK Limited
68. Reliance Navi Mumbai Infra Limited
69. Reverie Language Technologies Private
Limited
70. Rhea Retail Private Limited
71. Rutvi Project Managers Private Limited
72. Saavn Inc
73. Saavn LLC
74. Saavn Media Private Limited
75. SankhyaSutra Labs Private Limited
76. The Indian Film Combine Private Limited
77. Ulwe East Infra Limited
78. Ulwe North Infra Limited
79. Ulwe South Infra Limited
Sr.
No. Name of the Company
80. Ulwe Waterfront East Infra Limited
81. Ulwe Waterfront North Infra Limited
82. Ulwe Waterfront South Infra Limited
83. Ulwe Waterfront West Infra Limited
84. Ulwe West Infra Limited
2. Companies / Bodies Corporate which
ceased to be Subsidiaries during the
financial year 2018-19:
Sr.
No. Name of the Company
1.
2.
3.
4.
5.
6
7.
8.
Jio Digital Fibre Private Limited
Resolute Land Consortium Projects
Limited
RIL Exploration and Production
(Myanmar) Limited
Reliance LNG Limited
Reliance Jio Infratel Private Limited
Rutvi Project Managers Private Limited
Santol Commercials Private Limited
Tangerine Agro Private Limited
3. Companies / Bodies Corporate which
have become Joint Ventures or
Associates during the financial year
2018-19:
Sr.
No. Name of the Company
1.
2.
3.
4.
East West Pipeline Limited
Jamnagar Utilities & Power Private
Limited
Jio Digital Fibre Private Limited
Rutvi Project Managers Private Limited
4. Companies / Bodies Corporate which
ceased to be a Joint Venture or
Associate during the financial year
2018-19:
Sr.
No. Name of the Company
1.
East West Pipeline Limited
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 18, 2019
BOARD’S REPORTReliance Industries Limited | Integrated Annual Report 2018–19 ANNEXURE III
Annual Report on Corporate Social Responsibility (CSR) activities for the financial year 2018-19
1.
2
3.
4.
5.
A brief outline of the Company’s CSR Policy including overview of
projects or programmes proposed to be undertaken and a reference to
the web-link to the CSR Policy and projects or programmes.
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
` 40,558.13 crore
` 811.16 crore
` 811.16 crore
` 849.32 crore
Not applicable
Details given below
Details of amount spent on CSR activities during the financial year 2018-19
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) Local Area or Other
2) Specify the State and
district where projects
or programmes was
undertaken
Amount
Outlay
(Budget)
Project or
Programme-
wise
(` in crore)
Amount spent on the
Projects or Programmes:
Sub Heads
1) Direct Expenditure
on Projects or
Programmes
2) Overheads
(` in crore)
Cumulative
Expenditure
upto the
reporting
period
(` in crore)
Amount Spent
Direct or through
Implementing
Agency (IA)
RURAL TRANSFORMATION
1
RF Bharat India Jodo Cl (i) Eradicating hunger,
PAN INDIA
60.12
23.07
287.71
IA (1)
2
3
4
5
RF Information
Services
Community
Development
Partnership with
Non- Government
Organisations
CSR Initiatives - at
manufacturing
locations
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 (x) Rural Development
Projects
Cl (x) Rural Development
Projects
Cl (i) Eradicating hunger,
poverty and malnutrition;
Cl (iv) Ensuring
environmental
sustainability;
Cl (x) Rural Development
Projects
PAN INDIA
20.14
16.77
79.69
IA (1)
As per Note 1
PAN INDIA
As per Note 2
46.47
63.47
70.95
14.58
36.01
48.91
94.58
IA (1)
IA (1)
29.31
173.91
Direct
247
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 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) Local Area or Other
2) Specify the State and
district where projects
or programmes was
undertaken
Amount
Outlay
(Budget)
Project or
Programme-
wise
(` in crore)
Amount spent on the
Projects or Programmes:
Sub Heads
1) Direct Expenditure
on Projects or
Programmes
2) Overheads
(` in crore)
Cumulative
Expenditure
upto the
reporting
period
(` in crore)
Amount Spent
Direct or through
Implementing
Agency (IA)
HEALTH
6
Health Outreach
Programme
7
8
9
10
11
Drishti Corneal
transplant and other
initiatives for visually
impaired
Digital Health
Sir HN Reliance
Foundation Hospital
and Research Centre
Sir HN Hospital Trust
Lodhivali Hospital &
ART Clinic
12 Partnership with
Non- Government
Organisations
13 Mother & Child
Health Programme
& Other Community
Development
Initiatives
Cl. (i) Promoting health care
including preventive health
care
Cl (i) Promoting health care
including preventive health
care
Cl (i) Promoting health care
including preventive health
care
Cl (i) Promoting health care
including preventive health
care
Cl (i) Promoting health care
including preventive health
care
Cl (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
Maharashtra
- Mumbai, Thane
PAN INDIA
Maharashtra
- Mumbai.
Maharashtra
- Mumbai.
Maharashtra
- Mumbai.
Maharashtra
- Raigad
As per Note 3
Madhya Pradesh
- Shahdol
0.50
3.00
11.00
35.50
0.29
20.52
IA (1)
2.47
9.52
IA (1)
11.03
62.64
IA (1)
4.05
466.84
IA (1)
150.00
72.19
750.88
IA (1)
3.00
5.00
1.00
3.06
12.74
IA (1)
5.04
27.71
IA (1)
0.91
5.94
IA (1)
14 CSR Initiatives at
manufacturing
locations
Cl (i) Promoting health care
including preventive health
care
As per Note 2
16.00
14.36
76.38
Direct
EDUCATION
15
Vocational Skilling
Initiative
16 Reconstruction
of School at
Uttarakhand
17 Dhirubhai Ambani
Scholarship
Programme
Jio Institute
- Institution of
Eminence *
19 Digital Educations
18
Initiatives
20 Partnership with
Non-Government
Organisations
21 CSR Initiatives at
manufacturing
locations
248
Cl (ii) Promoting education
As per Note 4
Cl (ii) Education
Cl (ii) Promoting Education
Uttarakhand
- Rudraprayag,
Uttarkashi
As per Note 5
5.85
-
6.50
0.68
9.71
-
13.58
IA (1)
IA (1)
8.21
16.86
IA (1)
Cl (ii) Promoting Education Maharashtra
225.50
476.90
1,066.59
IA (1) / IA (2)
- Raigad
Cl (ii) Promoting Education
As per Note 6
Cl (ii) Promoting Education
As per Note 7
Cl (ii) Promoting Education
As per Note 2
0.00
8.15
2.00
0.02
3.72
21.45
138.10
IA (1)
IA (1)
20.08
116.57
Direct
BOARD’S REPORTReliance Industries Limited | Integrated Annual Report 2018–19 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)
Cl (vii) Promoting rural
sports, Nationally
recognised sports and
Olympic sports
Cl (vii) Promoting rural
sports, Nationally
recognised sports and
Olympic sports
Cl (vii) Promoting rural
sports, Nationally
recognised sports and
Olympic sports
Cl (vii) Promoting rural
sports, Nationally
recognised sports and
Olympic sports
Cl (vii) Promoting rural
sports, Nationally
recognised sports and
Olympic sports
SPORTS FOR DEVELOPMENT
22 Promoting Grassroot
Sports
23 Reliance Foundation
Jr. NBA Programme
24 RF Young Champs
25 Partnership with
Non- Government
Organisations
26 CSR Initiatives at
manufacturing
locations
DISASTER RESPONSE
27 Disaster Relief
URBAN RENEWAL
28
Environment - RF
- Urban Renewal
Initiatives
Cl (x) Rural Development
Projects
As per Note 9
Cl (iv) Ensuring
environmental
sustainability, ecological
balance
Maharashtra
- Mumbai
ARTS, CULTURE AND HERITAGE
29 Promoting Traditional
Arts and Culture
30 CSR Initiatives at
manufacturing
locations
Cl (v) Protection of national
heritage, art & culture
Cl (v) Protection of national
heritage, art & culture
As per Note 8
As per Note 2
Project or Programme
1) Local Area or Other
2) Specify the State and
district where projects
or programmes was
undertaken
Amount
Outlay
(Budget)
Project or
Programme-
wise
(` in crore)
Amount spent on the
Projects or Programmes:
Sub Heads
1) Direct Expenditure
on Projects or
Programmes
2) Overheads
(` in crore)
Cumulative
Expenditure
upto the
reporting
period
(` in crore)
Amount Spent
Direct or through
Implementing
Agency (IA)
PAN INDIA
66.00
40.93
100.39
IA (3)
PAN INDIA
Maharashtra
- Thane
Maharashtra
- Mumbai
3.85
3.00
2.56
16.00
IA (1)
1.36
11.01
IA (1)
10.00
3.78
3.85
IA (1)
As per Note 2
1.00
0.02
0.02
Direct
5.00
0.50
0.50
1.00
26.08
43.80
IA (1)
0.37
4.57
IA (1)
0.74
0.10
2.88
12.96
IA (1)
Direct
Some of CSR activities have been carried in partnership with other Non-Government Organisations or charitable institutions.
Grand Total
825.00
849.32
3,665.68
Previous years figures have been regrouped and restated for better pesentation.
249
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Note 1: Andhra Pradesh - East Godavari;
Gujarat - Bharuch, Jamnagar, Navsari,
Surat; Haryana - Jhajjar; Madhya Pradesh
- Anuppur, Shahdol; Maharashtra -
Mumbai, Palghar, Thane.
Note 2: Andhra Pradesh - East Godavari;
Gujarat - Bharuch, Jamnagar, Navsari,
Surat, Vadodara, Ahmedabad; Madhya
Pradesh - Shahdol; Maharashtra - Nagpur,
Raigad; Uttar Pradesh - Allahabad,
Barabanki; Punjab - Hoshiarpur
Note 3: Maharashtra - Mumbai,
Gangakhed, Yavatmal; Gujarat - Jasdan,
Netrang; Telangana - Warangal;
Uttarakhand - Dehradun; Madhya
Pradesh - Jamai, Seoni; Rajasthan
- Banswara, Sawai Madhopur; Union
Territory - Delhi.
Note 4: Andhra Pradesh - Anantapur,
Kurnool, Vishakhapatnam; Bihar - Patna;
Gujarat - Ahmedabad; Jharkhand - Ranchi;
Madhya Pradesh - Bhopal; Maharashtra
- Mumbai, Nagpur, Pune, Thane, Nashik;
Odisha - Bhubneshwar, Rajasthan -
Bhilwara, Jaipur; Tamil Nadu - Chennai;
Telangana - Karim Nagar, Khammam,
Nizamabad; Uttar Pradesh - Ghaziabad,
Lucknow; Uttarakhand - Rudraprayag;
West Bengal - Kolkata; Union Territory
- Delhi, Chandigarh.
Note 5: Goa - North Goa; Gujarat - Aravalli,
Banaskantha, Bharuch, Bhavnagar, Botad,
Chhota Udepur, Dahod, Dang, Devbhoomi
Dwarka, Gandhinagar, Gir Somnath,
Jamnagar, Junagadh, Kheda, Kutch,
Mahisagar, Mehsana, Morbi, Narmada,
Navsari, Panchmahal, Patan, Porbandar,
Rajkot, Sabarkantha, Surat, Surendranagar,
Tapi, Vadodara; Haryana - Faridabad;
Karnataka - Bengaluru; Kerela - Kollam;
Maharashtra - Mumbai, Thane, Pune,
Raigad; Punjab - Amritsar; Rajasthan
- Jaipur; Tamilnadu – Chennai; Union
Territory - Delhi, Dadra and Nagar Haveli,
Diu and Daman.
Note 6: Andhra Pradesh - Chittoor,
East Godavari, Guntur, Kadapa, Krishna,
Kurnool, Prakasam, Srikakulam,
Vishakhapatnam, Vizianagaram, West
Godavari; Madhya Pradesh - Shahdol;
Uttar Pradesh - Anantapur.
Note 7: Gujarat - Gandhinagar;
Maharashtra - Mumbai, Nagpur;
Uttarakhand - Chamoli; Union Territory
- Delhi.
Note 8: Maharashtra - Mumbai; Union
Territory - Delhi.
Note 9: Kerala - Wayanad, Kannur,
Kozhikode, Malappuram, Palakad, Thirusur,
Ernakulam, Allappuzha
Note:
IA (1) - Reliance Foundation (RF), a
IA (2) - 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.
IA (3) - Reliance Foundation Youth Sports
(RFYS), a company within meaning
of Section 8 of the Companies Act,
2013 has a comprehensive approach
towards development of grassroot
sports.
*Includes ` 475 crore towards contribution
to RFIER as Corpus for the proposed
University project.
The implementation and monitoring of
Corporate Social Responsibility (CSR)
Policy, is in compliance with CSR objectives
and policy of the Company.
Yogendra P. Trivedi Nikhil R. Meswani
Chairman,
CSR&G Committee
Executive Director
Mumbai, April 18, 2019
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.
250
BOARD’S REPORTReliance Industries Limited | Integrated Annual Report 2018–19
ANNEXURE IV
SECRETARIAL AUDIT REPORT
For the Financial Year Ended March 31, 2019
(iii) The Depositories Act, 1996 and the
Regulations and Bye-laws framed
thereunder;
[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, 2019 (‘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 2019
according to the provisions of:
(i) The Companies Act, 2013; the
Companies Act, 1956 (the Act) and the
rules made thereunder;
(ii) The Securities Contracts (Regulation)
Act, 1956 (‘SCRA’) and the rules made
thereunder;
(iv) Foreign Exchange Management Act,
1999 and the rules and regulations
made thereunder to the extent of
Foreign Direct Investment, Overseas
Direct Investment and External
Commercial Borrowings;
(v) The following Regulations and
Guidelines prescribed under the
Securities and Exchange Board of India
Act, 1992 (‘SEBI Act’): —
(a) The Securities and Exchange Board of
India (Substantial Acquisition of Shares
and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of
India (Prohibition of Insider Trading)
Regulations, 2015;
(c) The Securities and Exchange Board of
India (Issue of Capital and Disclosure
Requirements) Regulations, 2009
(d) The Securities and Exchange Board of
India (Share Based Employee Benefits)
Regulations, 2014;
(e) The Securities and Exchange Board
of India (Issue and Listing of Debt
Securities) Regulations, 2008;
(f) The Securities and Exchange Board of
India (Registrars to an Issue and Share
Transfer Agents) Regulations, 1993
regarding the Act and dealing with
client;
(g) The Securities and Exchange Board
of India (Delisting of Equity Shares)
Regulations, 2009 (Not applicable
to the Company during the Audit
Period);
(h) 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) Secretarial Standards issued by The
Institute of Company Secretaries of
India; and
(ii) 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.
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.
251
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 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 ` 19,000 Crore
(Paid up to the extent of ` 17,000 crore) in
five tranches as per the terms of issue of
respective tranche.
Dr. K. R. Chandratre
FCS No.: 1370, C. P. No.: 5144
Place: Pune
Date: 18/04/2019
This report is to be read with my letter of
even date which is annexed as Annexure
and forms an integral part of this report.
ANNEXURE TO THE SECRETARIAL AUDIT REPORT
To
The Members,
Reliance Industries Limited
My report of even date is to be read along with this letter:
1. Maintenance of secretarial records is the responsibility of the management of the
Company. My responsibility is to express an opinion on these secretarial records based
on my audit.
2.
I have followed the audit practices and processes as were appropriate to obtain
reasonable assurance about the correctness of the contents of the secretarial records.
I believe that the process and practices I followed, provide a reasonable basis for my
opinion.
3.
I have not verified the correctness and appropriateness of financial records and books
of accounts of the Company.
4. Wherever required, I have obtained Management Representation about the
compliance of laws, rules and regulations and happening of events, etc.
5. The compliance of the provisions of corporate and other applicable laws, rules,
regulations, standards is the responsibility of management.
6. The Secretarial Audit report is neither an assurance as to future viability of the
Company nor of the efficacy or effectiveness with which the management has
conducted the affairs of the Company.
Dr. K. R. Chandratre
FCS No.: 1370, C. P. No.: 5144
Place: Pune
Date: 18/04/2019
252
BOARD’S REPORTReliance Industries Limited | Integrated Annual Report 2018–19 ANNEXURE V
PARTICULARS OF ENERGY
CONSERVATION, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO REQUIRED
UNDER THE COMPANIES (ACCOUNTS)
RULES, 2014
A. Conservation of Energy
(i) Steps taken to conserve energy
We continue to meet the growing
energy demand, while working towards
minimising the environmental footprint of
our ongoing operations, as well as future
projects. At Reliance, we are continually
exploring new ways to make our operations
more efficient by putting technology to use
for direct energy savings and increasing
renewable energy sources.
Major energy conservation initiatives taken
during the FY 2018-19:
Refining and Marketing
Jamnagar Manufacturing Division (SEZ)
–
Installation of new Air Pre-Heater (APH)
in all 4 fired heaters of coker plant to
recover heat from flue gas.
– Heat Recovery from Crude Column
Overhead Vapours and reducing fuel
consumption in Crude heater.
Jamnagar Manufacturing Division (DTA)
–
Switching off 50% lighting fixtures for
12 hours while maintaining stipulated
illumination levels.
– HP Nitrogen compressor running
at 50% load instead of 100% by
modifying compressor controls to
reduce electrical power consumption
in MEG plant.
–
Change the throttle limit (TL) current in
utility air compressor to avoid venting
of compressed air during low load
operation.
Petrochemicals
Hazira Manufacturing Division
– Water washing of convection coils of
main furnaces resulting in better heat
recovery and fuel gas consumption
reduction.
–
Increased Quench Water flow through
heat exchanger to increase waste
heat recovery and reduce LP steam
consumption (Cracker De-aerator).
– Optimisation of Depentaniser
reflux and temperature control by
provision of bypass in GHU (Gasoline
Hydrogenation Unit) cooling water
exchangers.
–
–
–
–
–
–
–
Flare losses reduction by substituting
Fuel Gas with Nitrogen in Purging flare
lines.
Replacement of existing blades of Fin
fan collars with high efficiency aerofoil
blades resulting in Power consumption
reduction.
Reduction of reflux flow rate of
Benzene tower to reduce MP (Medium
pressure) steam consumption.
Reduction of reflux flow rate of
C-201 distillation column resulted
saving in HP (High Pressure) steam
consumption.
Reduction of LP (Low Pressure) steam
consumption by reflux flow trip setting
value optimisation in Butene-1 tall
columns.
Replacing MP steam with LP steam
in MEG-1 dehydrator, post column
internal modification, and in finishing
line dryers resulted in MP steam
saving.
Converting conventional distillation
process with Azeotropic distillation
in DH Column resulted in LP steam
consumption reduction by 30 TPH.
– Utilisation of lower size pump to
transfer methyl acetate to Methyl
Acetate Hydrolysis unit resulted in
Power saving.
– HP Steam Consumption reduction by
rectifying Traps, attending to leaks &
usage optimisation in Extruder.
–
–
–
–
–
–
–
Stopping of one vaporiser by using HP
Steam in Low boilers column reboiler
resulting in fuel gas consumption
reduction.
LP steam consumption by
Co-Monomer reflux optimisation
for ‘50 MI HD’ grade production in
PE plant.
Solution preheater temperature
optimisation in HD grades resulted in
fuel gas saving in PE plant.
Saving in LP Steam by shifting of
Boiler Feed Water load to Deaerator
5&6 and stoppage of Deaerator 7&8 by
reduction in fixed losses.
Stoppage of one Boiler Feed Water
pump at CCPP (coal fired captive
power plant) and increasing speed of
other pumps resulted in power saving.
Reduction of temperature set point
to 80oC from 110oC resulted in power
saving in ESP hopper heater of CCPP.
Fly ash recirculation in Boiler-3
resulting in increased boiler efficiency
and power consumption reduction in
PA fan.
Vadodara Manufacturing Division
–
–
–
Change of Steam for BBP from LMP to
LP steam to avoid venting of LP steam,
resulting in saving of 2 MT/hr steam.
Replacing turbine drive to motor drive
for Boiler Feed Water turbine driven
pump resulting in fuel reduction.
Steam optimisation in PVC (Poly Vinyl
Chloride) slurry stripper by installation
of steam to feed ratio controller.
– Use of LP steam instead of MP steam to
– Optimisation of water addition in
finishing line dryers.
–
PVC Effluent cooler upgradation for
increased heat recovery from hot
effluent into DMW resulting in LP
steam consumption reduction.
– HCL-Column vapour feed chilling
scheme resulted in Power saving
MEG reactor (Mono-Ethylene Glycol)
resulting in steam saving in multiple
effect evaporators in EOEG plant
(Ethylene Oxide-Ethylene Glycol).
–
Cooling water pumps replacement
with better efficiency at PP-4 plant
(polypropylene).
253
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Naroda Manufacturing Division
–
–
–
–
–
–
Replacement of old gas pipe with new
gas pipeline reduces leakage losses
and compressor power.
Conversion of Thermic fluid heating
to direct Gas firing in Stenter of textile
plant resulted in reduced thermal and
power consumption reduction.
Replacement of old ducts with
new ducts in air humidification/
conditioning systems resulted in
reduced leakages and thereby reduced
power consumption.
Conversion of stenters from DC (Direct
current) drives to AC (Alternating
current) drives, resulted in power
saving.
Steam and water savings achieved by
process modifications, installation of
air vent and by condensate recovery
mens wear processing and steam
distribution headers.
Replacement of 3,000 no.’s 36W T-8
light fittings by 2,500 no.’s 18W LED
Tube lights resulting in energy saving
of 60 kW.
Other initiatives taken at various
manufacturing divisions
– Ordinary tube lights replaced with
LED lights at Barabanki Manufacturing
Division.
–
–
–
(ii)
–
–
–
Replacement of old motor with energy
efficient motor in utility section at
Barabanki Manufacturing Division.
3 No. Energy Efficient Cooling
Water Pump Motor Replacement at
Hoshiarpur Manufacturing Division.
1 No. Energy Efficient Chilled Water
Pump Motor Replacement at
Hoshiarpur Manufacturing Division.
Steps taken to utilise alternate
sources of energy
Installation of Solar traffic blinkers
& lights at Silvassa Manufacturing
Division.
Solar cells installed on top of MRS
building for lighting at Hazira
Manufacturing Division.
Bio gas generated from anaerobic
treatment of effluents is used as
fuel in process heaters at Hazira
Manufacturing Division.
(iii) Capital investment on energy conservation equipment
Sr.
No
Manufacturing Division
Capital
investments on
energy efficient
equipment
(` in crore)
Jamnagar manufacturing division (SEZ)
Jamnagar manufacturing division (DTA)
(I) Refining & Marketing
1
2
(II) Petrochemicals
3
4
5
6
7
8
9
10 Alternate sources of energy
Hazira manufacturing division
Vadodara manufacturing division
Dahej manufacturing division
Nagothane manufacturing division
Silvassa manufacturing division
Naroda manufacturing division
Other manufacturing divisions
99.1
0.0
36.1
7.3
0.5
0.4
4.7
11.3
0.3
0.1
Energy
savings
(Gcal/hr)
14.9
0.8
34.1
5.8
30.4
3.0
0.0
1.7
0.0
0.0
– Major inspection of Gas Turbine -1 and
rotor replacement resulted in 3.24%
improvement in gas turbine heat rate.
–
–
Bypass of Heavies and light end
column at FPU (Feed Processing Unit).
Automation of ratio control in place
of being manual in stripper column in
PBR2 plant (Poly-Butadiene Rubber).
Dahej Manufacturing Division
– Maximising utilisation of hydrogen
from Chlor Alkali plant and reducing
fuel consumption.
–
–
–
–
–
–
–
Provision of pumping trap.
Conversion of class IV control valve
into Class VI-PIC5001.
Pump Overhauling carried out for
Cooling Tower pumps with operating
efficiency less than 60%.
Vacuum Improvement in C2
refrigeration compressor’s steam
turbine exhaust condenser resulting in
steam consumption reduction.
Increasing Condensate recovery by
provision of high pressure pump
resulting in thermal energy recovery.
Implementation of Advance process
controller in PVC plant resulted in
energy index improvement.
Line-2 Centrifuge Weir Height
reduction in PVC plant resulting in
better moisture removal and thereby
energy consumption reduction in the
subsequent drying process.
Nagothane Manufacturing Division
–
Steam trap replacement with
Bimetallic and IB type traps.
Silvassa Manufacturing Division
–
–
LED lighting installed in place of
conventional lighting.
Energy cost savings on account of
maintaining higher power factor.
254
BOARD’S REPORTReliance Industries Limited | Integrated Annual Report 2018–19 B. Technology Absorption
Research and technology at RIL helps
create superior value by harnessing internal
research and development skills and
competencies and creates innovations
in emerging technology domains related
to RIL’s various businesses. Research and
technology at Reliance focuses on:
(i)
new products, processes and catalyst
development to support existing
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.
1.
Major efforts made towards
technology absorption
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.
• 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.
• Optimised 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.
• 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 as 1-hexene,
butadiene, isoprene.
• Process for direct conversion of syngas
• Low energy catalytic process for
to olefins.
• Electro-reduction of CO2 to ethanol.
• Different options for CO2 and syn gas to
value products.
• Catalyst testing and selection support to
manufacturing.
•
• 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.
• Advanced technical support to
manufacturing operations.
• 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 visualise the
corrosive/passive molecules in crudes
or blends and study their impact on
corrosion.
• Fluxant recipe optimisation for gasifier
operations.
n-alkane to aromatics.
• Value addition of carbon dioxide and
syngas to chemicals.
• Eco-smart Polyvinyl Chloride (PVC)
development for specialty applications.
• Catalyst testing and selection support to
manufacturing.
• 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.
• Advanced technical support to
• Unique polyolefin product development
Gasification.
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.
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.
•
• Advanced technical support to
manufacturing operations
Impact copolymer (ICP) and homo grade
polypropylene development through
Reliance proprietary advanced catalyst
255
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. •
In-house research and external
technology for converting abundantly
available cellulosic biomass in India to
fuels and chemicals.
• Application of biotechnology to enhance
the productivity of biofuels species.
• Testing the best hybrids produced by
us and others at different agro-climatic
zones to identify most productive
cultivators.
• Popularising the cultivation of bio-fuel
crops by growers by conducting method
and varietal demonstrations.
• 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 utilising 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.
• 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
2.
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 2018-19 is
approximately ` 488 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.
3.
Information regarding imported technology (imported during last three years)
Details of technology imported
Liquid Phase Isomerisation
AMT-ADP process for azeotropic
distillation
Halogenated Isobutylene
Isoprene Rubber (HIIR), JV with
Sibur
Gas cracker (New facility in JMD
and revamps in DMD, HMD, NMD)
Technology
imported
from
Exxon
Mobil
AMT, USA
Yarsintez,
Russia
Year of
import
Status implementation /
absorption
2017-18
2015-16
2015-16
Commissioned successfully in
April 2018
Commissioned in HMD PTA-1 in
June 2018.
Detail engineering under progress
Technip
2012-13
Commissioned successfully in
2017-18.
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.
256
BOARD’S REPORTReliance Industries Limited | Integrated Annual Report 2018–19 4.
Expenditure incurred on Research
and Development
(II) Total Foreign exchange Earned and
Used
Sr.
No.
a)
b)
Particulars
Capital
Revenue
Total
(` in
crore)
1,286
1,091
2,377
Foreign exchange Earnings and Outgo
(I) Activities relating to export,
initiatives to increase exports,
Developments of New export
markets for Products and Services
and Export Plan.
The Company has continued to
maintain focus and avail of export
opportunities based on economic
considerations. During the year, the
Company has exports (FOB value)
worth `2,12,469 crore (US$ 30.7
billion).
Foreign Exchange earned in terms
of Actual Inflows
Foreign Exchange outgo in terms
of Actual Outflows
(` in
crore)
2,14,337
3,07,558
Note: Actual inflows does not include
total savings in Foreign Exchange through
products manufactured by the Company
and deemed exports amounting to
` 1,12,058 crore (US$ 16.2 billion).
For and on behalf of Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 18, 2019
257
Governance 184 ‒ 257Corporate Overview1 ‒ 46Management Review47 ‒ 183Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
STANDALONE FINANCIAL STATEMENTS
259 Independent Auditors’ Report on Financial Statements
268 Balance Sheet
269 Statement of Profit and Loss
270 Statement of Changes in Equity
272 Cash Flow Statement
274 Notes to the Financial Statements
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF RELIANCE INDUSTRIES LIMITED
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL
STATEMENTS
OPINION
We have audited the accompanying Standalone Financial Statements
of Reliance Industries Limited (“the Company”), which comprise
the Balance sheet as at March 31, 2019, 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 notes to the financial statements,
including a summary of significant accounting policies and other
explanatory information.
In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid Standalone Financial
Statements give the information required by the Companies Act,2013,
as amended (‘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,
2019, its profit including other comprehensive income, its cash flows
and the changes in equity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the Standalone Financial Statements in
accordance with the Standards on Auditing (SAs), as specified under
section 143(10) of the Act. Our responsibilities under those Standards
are further described in the ‘Auditor’s Responsibilities for the Audit
of the Standalone Financial Statements’ section of our report. We are
independent of the Company in accordance with the ‘Code of Ethics’
issued by the Institute of Chartered Accountants of India together
with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the Code of Ethics.
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.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the Standalone
Financial Statements for the financial year ended March 31, 2019.
These matters were addressed in the context of our audit of the
Standalone Financial Statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these
matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have determined the matters described below to be the key
audit matters to be communicated in our report. We have fulfilled
the responsibilities described in the Auditor’s responsibilities for
the audit of the Standalone Financial Statements section of our
report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the Standalone
Financial Statements. The results of our audit procedures, including
the procedures performed to address the matters below, provide
the basis for our audit opinion on the accompanying Standalone
Financial Statements.
Key audit matters
A. Carrying value of Investments in Reliance Energy Generation and Distribution Limited
How our audit addressed the key audit matter
Management regularly reviews whether there are any indicators of
impairment on the investments made by the Company (Refer Note B.2
(p).i.E by reference to the requirements under Ind AS 36 “Impairment of
Assets”). Accordingly, management has identified impairment indicators
(operating losses, negative net-worth) in Reliance Energy Generation and
Distribution Limited (REGDL), a wholly owned subsidiary of the Company
with an investment of ` 10,501 crore. As a result, an impairment
assessment has been performed by the Company by comparing the
carrying value of these investments to their recoverable amount to
determine whether an impairment was required to be recognised.
For the purpose of the above impairment testing, value in use has
been determined by forecasting and discounting future cash flows.
Furthermore, the value in use is highly sensitive to changes in some
of the inputs used for forecasting the future cash flows e.g. future oil
and natural gas prices and reserves volumes. The determination of the
recoverable amount of the investments in REGDL involved judgment due
to inherent uncertainty in the assumptions supporting the recoverable
amount of these investments.
Accordingly, the evaluation of impairment of investments in REGDL was
determined to be a key audit matter.
Our audit procedures included and were not limited to the following:
•
•
•
•
•
Obtained and read the financial statements of REGDL and its
subsidiaries to identify any disclosure for impairment of assets in their
standalone financial statements.
Assessing the appropriateness of the Company’s valuation
methodology applied in determining the recoverable amount.
In making this assessment, we also evaluated the objectivity,
independence and competency of specialists involved in the process.
Assessing the assumptions around the key drivers of the cash flow
forecasts including future oil and natural gas prices and reserves
volumes, discount rates, etc.
Assessing the appropriateness of the weighted average cost of capital
used in the determining recoverable amount by engaging valuation
experts.
Discussing/Evaluating potential changes in key drivers as compared
to previous year / actual performance with management in order to
evaluate whether the inputs and assumptions used in the cash flow
forecasts were suitable.
259
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. INDEPENDENT AUDITORS’ REPORT
Key audit matters
B. Investment in Reliance Jio Infocomm Limited (RJIL)
A) As at March 31, 2019, the Company has a total investments of ` 44,200
crore in Reliance Jio Infocomm Limited (subsidiary of the Company)
which constitutes 13 % of the total investment portfolio of the
Company (Refer Note 2 of the financial statements). These investments
are classified as financial assets in the financial statements.
As per Ind AS 36 – ‘Impairment of assets’, the standard is applicable
to financial assets classified as subsidiaries. Accordingly, in assessing
whether there is any indication that an asset may be impaired, an
entity shall consider as a minimum, the external and internal sources
of information, any other indications or evidences from internal
reporting that indicates that the assets may be impaired.
In case of RJIL, the existence of an impairment indicator is significantly
influenced by whether there is an impairment to the underlying
property, plant and equipment and intangible assets including
‘Spectrum / License fee’ in its financial statements. This assessment
involves significant judgment especially in relation to determination of
the expected pattern of consumption of the expected future economic
benefits.
B) Further, in the current year, as part of Composite Scheme of
Arrangement between RJIL, Jio Digital Fibre Private Limited (JDFPL)
and Reliance Jio Infratel Private Limited (RJIPL) (‘the scheme’) for
demerger of optic fiber cable undertaking of RJIL, upon the scheme
becoming effective on 31 March 2019, the Company, being shareholder
of RJIL, has received Equity Shares and Optionally Convertible
Preference Shares with surplus rights (‘OCPS’) of JDFPL. Pursuant to
receipt of these Equity Shares and OCPS, the Company has allocated
its cost of investments in RJIL into RJIL and JDFPL and elected to value
its investment in OCPS at Fair value through Other Comprehensive
Income (FVOCI). Subsequently, Company sold its controlling equity
stake in JDFPL to Digital FIbre Infrastructure Trust resulting into a
gain of ` 494 crore recognised in the statement of profit & loss. The
remaining Equity investment in JDFPL has been measured at FVTPL
and OCPS continued to be measured at FVTOCI. The Company has no
control or significant influence over JDFPL post the sale of controlling
stake. Refer Note 2.3 of the financial statements.
The same has been reported as a significant transaction that
occurred during the current year which involves exercise of judgment
and interpretation of the relevant Indian Accounting Standards
and applicable statutes / regulations. Accordingly, assessment of
impairment indicator for the investments in RJIL and accounting
treatment in the financial statements pursuant to demerger of optic
fiber cable undertaking of RJIL has been considered as a key audit
matter.
260
How our audit addressed the key audit matter
•
Assessing the recoverable value headroom by performing sensitivity
analysis of key assumptions used.
•
Performed inquiry procedures with the auditor of the step down
subsidiary of REGDL on their significant findings in relation to the
key data and assumptions used by the management for estimating
the oil and gas reserve; calculation of the depletion charge and
future net income and reasonableness of the discount rate used by
the subsidiary for calculating the future net income for impairment
calculation.
A) In respect of the impairment indicator assessment for the investments
in RJIL, our audit procedures included and were not limited to the
following:-
•
•
•
Obtained and read the financial statements of RJIL to identify if any
disclosure is made for impairment of assets in its standalone financial
statements.
Obtained the impairment indicator assessment performed by the
management considering internal / external sources of information
specifically relating to RJIL tangible and intangible assets including
‘Spectrum / License fee’ and related expected pattern of consumption
of expected future benefits.
Performed inquiry procedures with the subsidiary auditor on their
significant findings in relation to amortization and impairment of
property, plant and equipment and intangible assets, especially in
relation to ‘Spectrum / License fee’.'
B) In respect of the accounting treatment applied in the financial
statements pursuant to demerger of optic fiber cable undertaking
of RJIL, our audit procedures included and were not limited to the
following:-
•
•
•
•
•
•
•
Obtained and read the composite scheme of arrangement for
demerger of the optic fiber cable undertaking.
Obtained the memo prepared by the Company in consultation with
external experts (including related assumptions and accounting
policy choice) on the accounting treatment to be applied in the
financial statements.
Evaluating whether the measurement, recognition and disclosure of
the said transaction is in line with the applicable Indian Accounting
Standards.
Performing substantive testing procedures including involvement of
valuation specialists for testing of the valuation reports provided by
the management for appropriateness of assumptions involved and
testing of the computation.
Assessing whether the accounting entries recorded in the books is
in line with the accounting treatment assessed above, including the
arithmetical accuracy of the same.
Performed inquiry procedures with the auditors of RJIL on the
accounting treatment applied in its standalone financial statements
in respect of the demerger.
Review of the disclosure made by the Company in the financial
statements in this regard.
StandaloneReliance Industries Limited | Integrated Annual Report 2018–19
Key audit matters
C. Capitalisation of property, plant and equipment
As part of Gasification project, the Company has incurred additional
capital expenditure, for modification of power plant equipments i.e. Gas
Turbines, Auxiliary Boilers, HRSGs, Process Furnaces, etc. to make them
compatible to multiple feedstock, including those received from petcoke
gasifier. Currently all units of the gasification complex, its associated
utilities and offsites have been started and the complex is under
stabilization.
The testing phase of the project is under progress as at March 31, 2019
as it has not achieved the quality and efficiency parameters. Accordingly,
significant level of judgement is involved to ensure that capitalisation
of Property, Plant and Equipment meet the recognition criterias of
Ind AS 16 - Property, Plant and Equipment, specifically in relation to
determination of trial run period and costs associated with trial runs for
it to be ready for intended use.
As a result, the aforesaid matter was determined to be a key audit
matter.
D. Changes in useful life and residual value of plant and machinery
As at March 31, 2019, the Company had a gross block of ` 228,340 crore in
plant and machinery which constitutes 72.32% of the property, plant and
equipment (Refer Note 1 of the financial statements).
In the current year, the Company has revised the useful life and residual
value of the plant and machinery. Assessment of useful life and residual
values of plant and machinery in an integrated and complex plants
involves management judgment, consideration of historical experiences,
anticipated technological changes, etc. Refer Note 1.7 of the financial
statements.
Accordingly, it has been determined as a key audit matter.
How our audit addressed the key audit matter
Our audit procedures included and were not limited to the following
•
•
Assessing the nature of the costs incurred to substantially modify
the existing power plants to test whether such costs are incurred
specifically for trial run and meet the recognition criteria as set out in
para 16 to 22 of Ind AS 16.
Evaluating the assessment provided by third party vendors involved
in the construction and testing process to determine whether
capitalisation ceased when the asset is in the location and condition
necessary for it to be capable of operating in the manner intended by
the management.
Our audit procedures included and were not limited to the following:
•
•
•
•
Evaluating the reasonableness of the assumptions considered by the
management in estimation of useful life and residual values.
Examining the useful economic lives and residual value assigned with
reference to the Company’s historical experience, technical evaluation
by third party and our understanding of the future utilisation of assets
by the Company.
Assessing whether the impact on account of the change has been
appropriately recognised in the financial statements.
Review of the disclosure made by the Company in the financial
statements in this regard.
E. Estimation of oil reserves and decommissioning liabilities
Refer to Note 32.2 on proved reserves and production both on product
and geographical basis and Note C(A) on estimation of Oil and Gas
reserves, Note C(C) on depreciation and amortisation and Note 16 of the
financial statements.
Our procedures have focused on management’s estimation process
in the determination of oil and gas reserves and decommissioning
liabilities. Our work included and were not limited to the following
procedures:
Understand the Company’s process associated with the oil and gas
reserves estimation process.
Evaluating the objectivity, independence and competence of the
Internal specialists involved in the oil and gas reserves estimation
process.
Assessing whether the updated oil and gas reserve estimates were
included appropriately in the Company’s consideration of impairment,
accounting for amortization/depletion and disclosures of proved
reserves and proved developed reserves in the financial statements.
Testing of assumption used in the determining the decommissioning
provisions. Also compared these assumptions with past year and
enquired for reasons for any variations.
The determination of the Company’s oil and natural gas reserves
requires significant judgments and estimates to be applied. 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 impacts the determination of the
Company’s estimates of oil and natural gas reserves. The Company bases
its proved reserves estimates considering reasonable certainty with
rigorous technical and commercial assessments based on conventional
industry practice and regulatory requirements.
Estimates of oil and gas reserves are used to calculate depletion charges
for the Company’s oil and gas assets. The impact of changes in estimated
proved reserves is dealt with prospectively by amortising 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’s carrying values reported in the financial
statements.
•
•
•
•
Further, the recognition and measurement of decommissioning
provisions involves use of estimates and assumptions relating to 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.
Accordingly, the same is considered as a key audit matter.
261
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
INDEPENDENT AUDITORS’ REPORT
Key audit matters
F. Litigation matters (Oil and Gas)
The Company has certain significant open legal proceedings under
arbitration for various complex matters with the Government of India
and other parties, continuing from earlier years, which are as under:
a) Disallowance of certain costs under the production sharing contract,
relating to Block KG-DWN-98/3 and consequent deposit of differential
revenue on gas sales from D1D3 field to the gas pool account
maintained by Gail (India) Limited (Refer Note 32.3 and Note 32.4 (b)).
b) Claim against the Company in respect of gas said to have migrated
from neighboring blocks (KGD6) (Note 32.4 (a)).
c) Claims relating to limits of cost recovery, profit sharing and audit and
accounting provisions of the public sector corporations etc., arising
under two production sharing contracts entered into in 1994 (Note
32.4(c) ).
d) Suit for specific performance of a contract for supply of natural gas
before the Hon’ble Bombay High Court (Note 32.4 (d)).
Due to complexity involved in these litigation matters, management’s
judgement regarding recognition and measurement of provisions for
these legal proceedings is inherently uncertain and might change over
time as the outcomes of the legal cases are determined. Accordingly, it
has been considered as a key audit matter.
G. IT systems and controls over financial reporting
We identified IT systems and controls over financial reporting as a
key audit matter for the Company because its financial accounting
and reporting systems are fundamentally reliant on IT systems and
IT controls to process significant transaction volumes, specifically
with respect to revenue and raw material consumption. Automated
accounting procedures and IT environment controls, which include IT
governance, IT general controls over program development and changes,
access to programs and data and IT operations, IT application controls
and interfaces between IT applications are required to be designed and
to operate effectively to ensure accurate financial reporting.
How our audit addressed the key audit matter
Our audit procedures included and were not limited to the following:
•
•
•
•
•
Assessing management’s position through discussions with the
in-house legal expert and external legal opinions obtained by the
Company (where considered necessary) on both, the probability of
success in the aforesaid cases, and the magnitude of any potential
loss.
Discussion with the management on the development in these
litigations during the year ended March 31, 2019.
Roll out of enquiry letters to the Company’s legal counsel (internal/
external) and study the responses received from them. Also verified
that accounting/disclosure made by the Company are in accordance
with the assessment of legal counsel.
Review of the disclosures made by the Company in the financial
statements in this regard.
Obtained representation letter from the management on the
assessment of these matters.
Our procedures included and were not limited to the following:
•
•
•
•
Assessing the complexity of the IT environment by engaging IT
specialists and through discussion with the head of IT.
Assessing the design and evaluation of the operating effectiveness of
IT general controls over program development and changes, access to
programs and data and IT operations by engaging IT specialists.
Assessing the design and evaluation of the operating effectiveness
of IT application controls in the key processes impacting financial
reporting of the Company by engaging IT specialists.
Assessing the operating effectiveness of controls relating to data
transmission through the different IT systems to the financial
reporting systems by engaging IT specialists.
INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITOR’S REPORT THEREON
The Company’s Board of Directors is responsible for the other
information. The other information comprises the information
included in the Annual report, but does not include the Standalone
Financial Statements and our auditors’ report thereon.
Our opinion on the Standalone Financial Statements does not
cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the other information and,
in doing so, consider whether such other information is materially
inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report
in this regard.
RESPONSIBILITIES OF MANAGEMENT FOR THE
STANDALONE FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters
stated in section 134(5) of 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 changes in equity
of the Company in accordance with the 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 controls, that were operating effectively for ensuring the
262
StandaloneReliance Industries Limited | Integrated Annual Report 2018–19 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.
In preparing the Standalone Financial Statements, management
is responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the
Company’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE
STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about
whether the Standalone Financial Statements as a whole are
free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on
the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the
audit. We also:
•
•
•
•
Identify and assess the risks of material misstatement of the
Standalone Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we are
also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in
place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
Conclude on the appropriateness of management’s use of the
going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt
on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the
Standalone Financial Statements, including the disclosures,
and whether the Standalone Financial Statements represent the
underlying transactions and events in a manner that achieves
fair presentation.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the Standalone Financial Statements
for the financial year ended March 31, 2019 and are therefore
the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our
report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of
such communication.
OTHER MATTER
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 ` 55
crore, total expenditure of ` 494 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.
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;
263
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. INDEPENDENT AUDITORS’ REPORT
2. As required by Section 143(3) of the Act, we report that:
(h) With respect to the other matters to be included in
(a)
We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b) 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;
(c)
The Balance Sheet, the Statement of Profit and Loss
including the Statement of 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;
(d) 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;
(e)
(f)
On the basis of the written representations received from
the directors as on March 31, 2019 taken on record by the
Board of Directors, none of the directors is disqualified as
on March 31, 2019 from being appointed as a director in
terms of Section 164 (2) of the Act;
With respect to the adequacy of the internal financial
controls over financial reporting of the Company with
reference to these Standalone Financial Statements and
the operating effectiveness of such controls, refer to our
separate Report in “Annexure 2” to this report;
(g)
In our opinion, the managerial remuneration for the
year ended March 31, 2019 has been paid / provided
by the Company to its directors in accordance with the
provisions of section 197 read with Schedule V to the Act;
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended,
in our opinion and to the best of our information and
according to the explanations given to us:
i.
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;
ii. The Company has made provision, as required
under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term
contracts including derivative contracts;
iii. 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 ` 1.51 crore which are held in abeyance
due to pending legal cases.
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
T P Ostwal
Partner
Membership No. 030848
Mumbai
Date: April 18, 2019
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
Vikas Kumar Pansari
Partner
Membership No. 093649
264
StandaloneReliance Industries Limited | Integrated Annual Report 2018–19 Annexure 1
To the Independent Auditor’s Report of even date 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 of even date)
(i)
(a)
The Company has maintained proper records showing full
particulars, including quantitative details and situation
of fixed assets.
(iv)
(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 previous 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 allotment letters are received and supplementary
agreements entered; however, lease deeds are pending
execution. (Refer note 1.1 of the Financial Statements).
(c)
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.
In our opinion and according to the information and explanations
provided to us, the Company has not granted any loans or
provided any guarantees or security to the parties covered under
Section 185 of the Act. The Company has complied with the
provisions of Section 186 of the Act in respect of investments
made or loans or guarantee or security provided to the parties
covered under Section 186.
(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.
(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.
(vii) (a)
(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)
The schedule of repayment of principal and payment of
interest has been stipulated for the loans granted and the
repayment/receipts are regular.
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, Sales Tax,
Goods and Service tax, Service 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.
265
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
INDEPENDENT AUDITORS’ REPORT
Annexure 1
To the Independent Auditor’s Report on the Standalone Financial Statements of Reliance Industries Limited
(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, 2019 on account of any dispute, are as follows:
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
Income Tax
Central Excise Act, 1944 Excise Duty
and Service
Tax
Central Sales Tax Act,
1956 and Sales Tax Act
of various States
Sales Tax/ VAT
and Entry Tax
Customs Act, 1962
Customs Duty
* ` 0.12 crore
28 Various Years from 1997-98 to 2016-17
-* Various Years from 1990-91 to 2017-18
210 Various Years from 1991-92 to 2016-17
4 Various Years from 2006-07 to 2009-10
496 Various Years from 1983-88 to 2011-12
55 Various Years from 2000-01 to 2011-12
23 2001-02 and 2005-06
20 2007-08
Commissioner of Income-Tax (Appeals)
Commissioner of Central Excise (Appeals)
Central Excise and Service Tax Appellate
Tribunal
High Court
Sales Tax Appellate Tribunal
High Court
Supreme Court
Central Excise and Service Tax Appellate
Tribunal
(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)
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
material fraud on the Company by the officers and employees of
the Company has been noticed or reported during the year.
(xi)
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)
T P Ostwal
Partner
Membership No. 030848
Mumbai
Date: April 18, 2019
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
Vikas Kumar Pansari
Partner
Membership No. 093649
266
StandaloneReliance Industries Limited | Integrated Annual Report 2018–19
Annexure 2
To the Independent Auditor’s Report of even Date 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, 2019 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 with reference to these standalone
financial statements 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 with
reference to these standalone financial statements 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 with reference to these standalone financial statements and
their operating effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of internal financial
controls over financial reporting with reference to these standalone financial
statements, 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 with reference to these standalone
financial statements.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER
FINANCIAL REPORTING WITH REFERENCE TO THESE
FINANCIAL STATEMENTS
A company’s internal financial control over financial reporting with reference
to these standalone financial statements 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 with reference to these standalone financial
statements 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 WITH
REFERENCE TO THESE STANDALONE FINANCIAL
STATEMENTS
Because of the inherent limitations of internal financial controls over
financial reporting with reference to these standalone financial statements,
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 with reference to these standalone
financial statements to future periods are subject to the risk that the internal
financial control over financial reporting with reference to these standalone
financial statements 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, the Company has, in all material respects, adequate internal
financial controls over financial reporting with reference to these standalone
financial statements and such internal financial controls system over
financial reporting with reference to these standalone financial statements
were operating effectively as at March 31, 2019, 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)
T P Ostwal
Partner
Membership No. 030848
Mumbai
Date: April 18, 2019
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
Vikas Kumar Pansari
Partner
Membership No. 093649
267
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BALANCE SHEET
As at 31st March, 2019
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 Due to:
Micro and Small Enterprise
Other than Micro and Small Enterprise
Other Financial Liabilities
Other Current Liabilities
Provisions
Total Current Liabilities
Total Liabilities
Total Equity and Liabilities
Significant Accounting Policies
See accompanying Notes to the Financial Statements
Notes
As at
31st March, 2019
As at
31st March, 2018
(` 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 to 41
1,94,895
1,05,155
8,293
6,402
2,71,980
31,806
4,287
6,22,818
44,144
59,556
12,110
3,768
4,876
17,274
11,199
1,52,927
7,75,745
6,339
3,98,983
4,05,322
1,18,098
2,483
47,317
504
1,68,402
39,097
229
88,012
27,675
46,225
783
2,02,021
3,70,423
7,75,745
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
183
88,492
48,250
37,565
918
1,90,647
3,02,878
6,17,525
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)
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
Chairman & Managing Director
Executive Directors
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Nita M. Ambani
Non-Executive, Non-Independent Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Mumbai
Date: April 18, 2019
268
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Independent Directors
StandaloneReliance Industries Limited | Integrated Annual Report 2018–19
STATEMENT OF PROFIT AND LOSS
For the year ended 31st March, 2019
Notes
2018-19
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 / (Loss) 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
4,00,139
847
4,00,986
16,082
3,84,904
9,419
3,94,323
2,65,288
8,289
(3,294)
13,885
5,834
9,751
10,558
36,645
3,46,956
47,367
9,440
2,764
35,163
76,892
(16,569)
(827)
178
59,674
94,837
55.48
55.47
24
25
26
27
28
1
29
11
17
25.1
25.2
30
30
1 to 41
(` in crore)
2017-18
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
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)
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
Chairman & Managing Director
Executive Directors
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Nita M. Ambani
Non-Executive, Non-Independent Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Mumbai
Date: April 18, 2019
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Independent Directors
269
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Balance as at
1st April,
2018
Total
Comprehensive
Income for the
Year
Dividends
Tax on
Dividend
Transfer
to/ (from)
Retained
Earnings
On Employee
Stock Options
Balance as at
31st March, 2019
15
-
-
-
-
(13)
2
(` in crore)
Balance as at
31st March, 2019
6,339
(` in crore)
-
132
-
(3)
-
-
-
116
291
46,306
9,375
9
2,55,000
26,808
61,192
3,98,983
STATEMENT OF CHANGES IN EQUITY
For the year ended 31st March, 2019
A. EQUITY SHARE CAPITAL
Balance as at
1st April, 2017
3,251
Change during
the year 2017-18
3,084
Balance as at
31st March, 2018
6,335
Change during
the year 2018-19
4
B. OTHER EQUITY
As at 31st March, 2019
Share Application Money Pending Allotment
RESERVES AND SURPLUS
Capital Reserve
Securities Premium
Debenture Redemption Reserve
Share Based Payments Reserve
General Reserve
Retained Earnings
291
46,174
5,251
12
2,25,000
30,051
-
-
-
-
-
35,163
-
-
-
-
-
(3,554)
-
-
-
-
-
(728)
-
-
4,124
-
30,000
(34,124)
Other Comprehensive Income
1,518
59,674
-
-
Total
3,08,312
94,837
(3,554)
(728)
-
-
270
StandaloneReliance Industries Limited | Integrated Annual Report 2018–19 Balance as
at 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
Balance as at
31st March,
2018
(` in crore)
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
As at 31st March, 2018
Share Application Money Pending Allotment
RESERVES AND SURPLUS
Capital Reserve
Capital Redemption Reserve
Securities Premium
Debenture Redemption Reserve
Share Based Payments Reserve
General Reserve
Retained Earnings
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)
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
Chairman & Managing Director
Executive Directors
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Nita M. Ambani
Non-Executive, Non-Independent Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Mumbai
Date: April 18, 2019
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Independent Directors
271
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. CASH FLOW STATEMENT
For the year ended 31st March, 2019
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
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)
Dividend Paid (including Dividend Distribution Tax)
Interest Paid
Net Cash Flow from / (used) in Financing Activities
Net Increase in Cash and Cash Equivalents
Opening Balance of Cash and Cash Equivalents
Closing Balance of Cash and Cash Equivalents ** (Refer Note 8)
* Amount spent in Cash towards Corporate Social Responsibility is ` 849 crore (Previous Year ` 745 crore).
** Include towards Unclaimed Dividend of ` 235 crore (Previous Year ` 259 crore).
272
2018-19
47,367
(15)
10,558
(1,540)
(2,605)
(449)
(5,761)
9,751
57,306
(19,777)
(4,575)
9,300
42,254
(9,426)
32,828
(24,971)
103
(28,827)
97
(10,05,611)
10,17,713
(19,150)
2,612
3
445
(57,586)
117
2
23,989
(6,594)
24,147
(4,282)
(11,584)
25,795
1,037
2,731
3,768
(` in crore)
2017-18
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)
125
15
28,328
(11,344)
(7,855)
(3,916)
(7,267)
(1,914)
977
1,754
2,731
StandaloneReliance Industries Limited | Integrated Annual Report 2018–19 CHANGE IN LIABILITY ARISING FROM FINANCING ACTIVITIES
Borrowing - Non-Current (Refer Note 15)
Borrowing - Current (Refer Note 19)
Borrowing - Non Current (Refer Note 15)
Borrowing - Current (Refer Note 19)
1st April,
2018
1,01,642
15,239
1,16,881
1st April,
2017
84,866
22,580
1,07,446
Cash flow
17,395
24,147
41,542
Cash flow
16,984
(7,855)
9,129
Foreign
exchange
movement
(` in crore)
31st March,
2019
3,586
(289)
3,297
1,22,623
39,097
1,61,720
Foreign
exchange
movement
(` in crore)
31st March,
2018
(208)
514
306
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)
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
Chairman & Managing Director
Executive Directors
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Nita M. Ambani
Non-Executive, Non-Independent Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Mumbai
Date: April 18, 2019
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Independent Directors
273
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. NOTES to the Standalone Financial Statements for the year ended 31st March, 2019
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)
Certain Financial Assets and Liabilities (including
derivative instruments),
ii) Defined Benefit Plans - Plan Assets and
iii) 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.
With effect from 1st April 2018, Ind AS 115 – “Revenue
from Contracts with Customers” (Ind AS 115) supersedes
Ind AS 18 – “Revenue” and related Appendices.
The Company has adopted Ind AS 115 using the modified
retrospective approach. The application of Ind AS
115 did not have any material impact on recognition
and measurement principles. However, it results in
additional presentation and disclosure requirements
for the company.
The 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) Current and Non-Current Classification
The Company presents assets and liabilities in
the Balance Sheet based on Current/ Non-Current
classification.
An asset is treated as Current when it is –
-
-
-
Expected to be realised or intended to be sold or
consumed in normal operating cycle;
Held primarily for the purpose of trading;
Expected to be realised within twelve months
after the reporting period, or
274
-
Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
-
-
-
-
It is expected to be settled in normal
operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after
the reporting period, or
There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.
The Company classifies all other liabilities
as non-current.
Deferred tax assets and liabilities are classified as
non-current assets and liabilities.
(b) 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
StandaloneReliance Industries Limited | Integrated Annual Report 2018–19
& 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)
Over its useful life as
technically assessed
Fixed Bed Catalyst (useful
life: up to 2 years)
100% depreciated in the
year of addition
Premium on Leasehold
Land (range upto 99 years)
Plant and Machinery
(useful life: 25 to 40 years)
Over the period of lease
term
Over its useful life as
technically assessed
The residual values, useful lives and methods of
depreciation of Property, Plant and Equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.
Gains or losses arising from derecognition of a
Property, Plant and Equipment are measured as the
difference between the net disposal proceeds and
the carrying amount of the asset and are recognised
in the Statement of Profit and Loss when the asset
is derecognised.
(c) 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 capitalised.
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.
(d) 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.
The company’s intangible assets comprises
assets with finite useful life which are amortised
on a straight-line basis over the period of their
expected useful life.
275
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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
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.
Others
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.
(e) Research and Development Expenditure
Revenue expenditure pertaining to research is
charged to the Statement of Profit and Loss.
Development costs are capitalised as an intangible
asset if it can be demonstrated that the project is
expected to generate future economic benefits, it is
probable that those future economic benefits will
flow to the entity and the costs of the asset can be
measured reliably, else it is charged to the Statement
of Profit and Loss.
(f)
Cash and Cash Equivalents
Cash and cash equivalents comprise of cash on hand,
cash at banks, short-term deposits and short-term,
highly liquid investments that are readily convertible
to known amounts of cash and which are subject to
an insignificant risk of changes in value.
(g) Finance Costs
Borrowing costs include exchange differences arising
from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest
cost. Borrowing costs that are 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.
(h ) Inventories
(i)
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 finished goods, work-in-progress, raw
materials, chemicals, stores and spares, packing
materials, trading and other products are determined
on weighted average basis.
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
276
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
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.
(j) 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 recognised 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 recognised in the
Statement of Profit and Loss.
(k) 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 recognises 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 recognised 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 recognised 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
The Company recognises the employee separation
cost when the scheme is announced and the
Company is demonstrably committed to it.
(l) Tax Expenses
The tax expenses 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. 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.
ii. 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.
277
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Deferred tax assets are recognised to the extent
it is probable that taxable profit will be available
against which the deductible temporary
differences, and the carry forward of unused tax
losses can be utilised
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.
(m) 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.
(n) 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 capitalised 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).
In case of an asset, expense or income where a
non-monetary advance is paid/received, the date
of transaction is the date on which the advance was
initially recognised. If there were multiple payments
or receipts in advance, multiple dates of transactions
are determined for each payment or receipt of
advance consideration.
(o) Revenue Recognition
Revenue from contracts with customers is recognised
when control of the goods or services are transferred
to the customer at an amount that reflects the
consideration entitled in exchange for those goods
or services. The Company is generally the principal
as it typically controls the goods or services before
transferring them to the customer.
Generally, control is transferred upon shipment of
goods to the customer or when the goods is made
available to the customer, provided transfer of title
to the customer occurs and the Company has not
retained any significant risks of ownership or future
obligations with respect to the goods shipped.
Revenue from rendering of services is recognised
over time by measuring the progress towards
complete satisfaction of performance obligations at
the reporting period.
Revenue is measured at the amount of consideration
which the company expects to be entitled to in
exchange for transferring distinct goods or services
278
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
to a customer as specified in the contract, excluding
amounts collected on behalf of third parties (for
example taxes and duties collected on behalf of
the government). Consideration is generally due
upon satisfaction of performance obligations and
a receivable is recognised when the it becomes
unconditional. Generally, the credit period varies
between 0-60 days from the shipment or delivery of
goods or services as the case may be.
The Company provides volume rebates to certain
customers once the quantity of products purchased
during the period exceeds a threshold specified and
also accrues discounts to certain customers based
on customary business practices which is derived on
the basis of crude price volatility and various market
demand – supply situations. Consideration are
determined based on its most likely amount.
Generally, sales of petroleum products contain
provisional pricing features where revenue is
initially recognised based on provisional price.
Difference between final settlement price and
provisional price is recognised subsequently.
The Company does not adjust short-term advances
received from the customer for the effects of
significant financing component if it is expected at
the contract inception that the promised good or
service will be transferred to the customer within a
period of one year.
Contract Balances:
Trade Receivables
A receivable represents the Company’s right to an
amount of consideration that is unconditional.
Contract Liabilities
A contract liability is the obligation to transfer
goods or services to a customer for which the
Company has received consideration (or an amount
of consideration is due) from the customer. If a
customer pays consideration before the Company
transfers goods or services to the customer, a
contract liability is recognised when the payment is
made or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when
the Company performs under the contract.
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.
(p) Financial Instruments
i.
Financial Assets
A.
Initial Recognition and Measurement
All Financial Assets are initially recognised 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)
b)
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 represent solely payments of
principal and interest on the principal
amount outstanding.
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 represents 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.
Financial assets are reclassified subsequent
to their recognition, if the Company changes
its business model for managing those
financial assets. Changes in business model
are made and applied prospectively from the
reclassification date which is the first day of
immediately next reporting period following
the changes in business model in accordance
with principles laid down under Ind AS 109 –
Financial Instruments.
279
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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).
The investments in preference shares
with the right of surplus assets which are
in nature equity in accordance with Ind
AS 32 are treated as separate category of
investment and measured as at FVTOCI.
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’. However, dividend on such equity
investments are recognised in Statement of
Profit and loss when the company’s right to
receive payment is established.
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. Financial Liabilities
A.
Initial Recognition and Measurement
All Financial Liabilities are recognised 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 amortised
cost using the effective interest method.
iii.
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. At the inception of a hedge
relationship, the Company formally designates
and documents the hedge relationship to
which the Company wishes to apply hedge
accounting and the risk management objective
and strategy for undertaking the hedge.
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.
280
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
Hedges that meet the criteria for hedge
accounting are accounted for as follows:
A. Cash Flow Hedge
The Company designates derivative
contracts or non-derivative Financial
Assets / Liabilities as hedging instruments
to mitigate the risk of movement in
interest rates and foreign exchange
rates for foreign exchange exposure
on highly probable future cash flows
attributable to a recognised asset or
liability or forecast cash transactions.
When a derivative is designated as a cash
flow hedging instrument, the effective
portion of changes in the fair value of
the derivative is recognised 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 recognised 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
recognised 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
recognised 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 derecognises 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
derecognised 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.
(q) Non-current Assets Held for Sale
Non-current assets are classified as held for
sale if their carrying amount will be recovered
principally through a sale transaction rather than
through continuing use and sale is considered
highly probable.
A sale is considered as highly probable when decision
has been made to sell, assets are available for
immediate sale in its present condition, assets are
being actively marketed and sale has been agreed or
is expected to be concluded within 12 months of the
date of classification.
Assets and liabilities classified as held for sale are
measured at the lower of their carrying amount
and fair value less cost of sell and are presented
separately in the Balance Sheet.
(r) 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
281
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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 capitalised 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.
(s)
Earnings Per Share
Basic earnings per share is calculated by dividing
the net profit after tax by the weighted average
number of equity shares outstanding during the
year adjusted for bonus element in equity share.
Diluted earnings per share adjusts the figures used in
determination of basic earnings per share to take into
account the conversion of all dilutive potential equity
shares. Dilutive potential equity shares are deemed
converted as at the beginning of the period unless
issued at a later date.
C.
CRITICAL ACCOUNTING JUDGEMENTS 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.
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 amortising
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 recognised
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 utilisation of assets by other fields, the scope
of abandonment activity and pre-tax rate applied
for discounting.
(C) DEPRECIATION / AMORTISATION AND USEFUL
LIFE OF PROPERTY PLANT AND EQUIPMENT /
INTANGIBLE ASSETS
Property, Plant and Equipment / Intangible Assets are
depreciated / amortised over their estimated useful
life, after taking into account estimated residual
value. Management reviews the estimated useful life
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 life
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.
(A) ESTIMATION OF OIL AND GAS RESERVES
(D) RECOVERABILITY OF TRADE RECEIVABLES
The determination of the Company’s estimated oil and
natural gas reserves requires significant judgements
Judgements are required in assessing the recoverability
of overdue trade receivables and determining whether
282
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
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
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 FINANCIAL AND NON-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.
In case of non-financial assets company estimates asset’s
recoverable amount, which is higher of an asset’s or Cash
Generating Units (CGU’s) fair value less costs of disposal
and its value in use.
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) RECOGNITION OF DEFERRED TAX ASSETS AND
LIABILITIES
Deferred tax assets and liabilities are recognised for
deductible temporary differences and unused tax losses
for which there is probability of utilisation against the
future taxable profit. The Company uses judgement
to determine the amount of deferred tax that can be
recognised, based upon the likely timing and the level of
future taxable profits and business developments.
(H) FAIR VALUE MEASUREMENT
For estimates relating to fair value of financial
instruments refer note 35 of financial statements.
D.
STANDARDS ISSUED BUT NOT EFFECTIVE
On March 30,2019, the Ministry of Corporate Affairs (MCA)
has notified Ind AS 116 – Leases and certain amendment to
existing Ind AS. These amendments shall be applicable to the
Company from April 01, 2019.
A)
ISSUE OF IND AS 116 - LEASES
Ind AS 116 will replace the existing leasing standard
i.e. Ind AS 17 and related interpretations. Ind AS 116
introduces a single lessee accounting model and
requires lessee to recognise assets and liabilities for
all leases with non-cancellable period of more than
twelve months except for low value assets. Ind AS 116
substantially carries forward the lessor accounting
requirement in Ind AS 17.
B) AMENDMENT TO EXISTING STANDARD
The MCA has also carried out amendments of the
following accounting standards
i.
Ind AS 101- First time adoption of Indian
Accounting Standards
Ind AS 103 – Business Combinations
Ind AS 109 - Financial Instruments
Ind AS 111 – Joint Arrangements
Ind AS 12 – Income Taxes
Ind AS 19 – Employee Benefits
ii.
iii.
iv.
v.
vi.
vii. Ind AS 23 – Borrowing Costs
viii. Ind AS 28 - Investment in Associates
and Joint Ventures
Application of above standards are not expected to have any
significant impact on the Company’s financial statements.
283
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
1.
PROPERTY, PLANT AND EQUIPMENT, CAPITAL WORK-IN-PROGRESS, INTANGIBLE ASSETS AND INTANGIBLE ASSETS UNDER
DEVELOPMENT
Gross Block
Depreciation / Amortisation and Depletion
Net Block
(` in crore)
As at
01-04-2018
Additions
/Adjustments
Deductions
/Adjustments
As at
31-03-2019
As at
01-04-2018
For the
Year #
Deductions
/Adjustments
As at
31-03-2019
As at
31-03-2019
As at
31-03-2018
19,510
36,954
14,422
2,19,609
6,322
5,741
658
567
424
46
3,04,253
318
10
328
3,04,581
4,420
1,033
42,163
812
48,428
3,53,009
2
92
2,238
9,152
513
44
57
38
1
-
12,137
-
-
-
12,137
138
43
630
52
863
13,000
19
3
7
421
104
362
3
36
7
-
962
-
-
-
962
-
13
-
-
13
975
19,493
37,043
16,653
2,28,340
6,731
5,423
712
569
418
46
1,146
-
5,374
98,391
3,287
2,919
513
400
319
37
3,15,428 1,12,386
318
10
328
306
10
316
3,15,756 1,12,702
217
-
950
6,621
572
565
35
61
10
1
9,032
1
-
1
9,033
4,558
1,063
42,793
864
49,278
2,749
957
34,825
812
39,343
3,65,034 1,52,045
161
44
1,412
38
1,655
10,688
1
-
1
381
87
359
3
35
7
-
1,362
-
6,323
1,04,631
3,772
3,125
545
426
322
38
18,364
36,954
9,048
1,21,218
3,035
2,822
145
167
105
9
874 1,20,544 1,94,884 1,91,867
18,131
37,043
10,330
1,23,709
2,959
2,298
167
143
96
8
-
-
-
12
-
12
874 1,20,861 1,94,895 1,91,879
307
10
317
11
-
11
-
13
-
-
13
2,910
988
36,237
850
40,985
1,671
76
7,338
-
9,085
887 1,61,846 2,03,188 2,00,964
1,648
75
6,556
14
8,293
2,97,352
56,253
596
3,53,009
1,42,774
9,805
534 1,52,045 2,00,964
1,05,155
6,402
92,581
6,902
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)
INTANGIBLE ASSETS *
Technical Knowhow Fees
Software
Development Rights
Others
Total (B)
Total (A + B)
Previous Year
CAPITAL WORK-IN-PROGRESS
INTANGIBLE ASSETS
UNDER DEVELOPMENT
$ Includes Office Equipments
* Other than internally generated
#
Depreciation / Amortisation and Depletion Expense for the year includes depreciation of ` 130 crore (Previous Year ` 225 crore) capitalised during the year.
Thus, the net amount ` 10,558 crore has been considered in Statement of Profit and Loss.
284
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone 1.1
LEASEHOLD LAND INCLUDES :
i)
ii)
Leasehold Land includes ` 89 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.
1.2 BUILDINGS INCLUDES :
i) Cost of shares in Co-operative Societies ` 2,03,700 (Previous Year ` 2,02,700).
ii)
` 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)
` 21,823 crore (Previous Year ` 16,567 crore) on account of Project Development Expenditure.
ii) ` 6,625 crore (Previous Year ` 7,551 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 ` 4,580 crore (net loss) [Previous Year ` 823 crore (net loss)] on account of exchange difference
during the year.
1.6 For Assets pledged as security - Refer Note 15.1 .
1.7
Till year ended 31 March 2018, the estimated useful life of certain assets of plant and machinery were in range of 15-25 years
with residual value of 5% of original cost. The management, based on internal and external technical evaluation, reassessed the
estimates. Basis the technical evaluation made by the Management, the Company has revised the useful life of those assets in
the range of 25 to 40 years and residual value to 15% of original cost effective from April 01, 2018.
The company has also evaluated certain assets and wherever necessary, has provided for accelerated depreciation in
some of the assets.
285
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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 of ` 10 each
As at 31st March, 2019
As at 31st March, 2018
Units
Amount
Units
Amount
(` in crore)
-
-
-
50,00,00,000
3,542
In Debentures of Other Companies
Unquoted, fully paid up
9% Non-convertible Debentures of Jio Digital Fibre Private Limited of ` 10 lakh each
9% Non-convertible Debentures of Reliance Jio Infratel Private Limited of
` 10 lakh each
4,53,420
1,18,360
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
Unquoted, fully paid up
Gujarat Chemicals Port Terminal Company Limited of ` 1 each
Indian Vaccines Corporation Limited of ` 10 each
Jamnagar Utilities & Power Private Limited (Formerly Reliance Utilities and
Power Private Limited) Class 'A' shares of ` 1 each
[` 40,40,000; (Previous Years ` 40,40,000)]
Reliance Europe Limited of Sterling Pound 1 each
In Equity Shares of Joint Venture Companies
Unquoted, fully paid up
Jio Payments Bank Limited of ` 10 each
Rutvi Project Managers Private Limited of ` 10 each
In Equity Shares of Subsidiary Companies
Unquoted, fully paid up
Indiavidual Learning Private Limited of ` 1 each
Jio Information Solutions Limited of ` 10 each [` 5,00,000;
(Previous Year ` 5,00,000)]
Radisys Corporation of USD 10 each
Reliance Content Distribution Limited of ` 10 each [` 5,00,000; (Previous Year ` Nil)]
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
68,60,064
64,29,20,000
62,63,125
52,00,000
11,08,500
16,24,00,000
5,00,000
45,78,904
50,000
75,00,000
50,000
12,50,000
15,85,00,000
37,30,00,000
15,00,000
30,00,000
14,75,04,400
42,450
45,342
11,836
57,178
-
57,178
16
16
64
1
-
4
69
162
1
163
327
-
539
-
1
1,010
373
65
54
148
46
-
-
68,60,064
64,29,20,000
62,63,125
52,00,000
11,08,500
9,24,00,000
-
-
50,000
-
-
12,50,000
15,85,00,000
37,30,00,000
15,00,000
5,00,000
14,75,04,400
42,450
286
3,542
-
-
-
-
3,542
16
16
64
1
-
4
69
92
-
92
-
-
-
-
1
1,010
373
65
32
148
46
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone Particulars
Reliance Industries Uruguay Petroquímica S.A. (Formerly Dreketi S.A.) of
Uruguayan Peso 1 each [(Previous Year ` 45,326)]
Reliance Jio Infocomm Limited of ` 10 each (Refer Note 2.3)
Reliance Jio Messaging Services Private Limited of ` 10 each
Reliance LNG Limited of ` 10 each [` Nil; (Previous Year ` 2,25,000)]
Reliance Navi Mumbai Infra Limited of ` 10 each [` 5,00,000; (Previous Year ` Nil)]
Reliance Retail Ventures Limited of ` 10 each
Reliance Sibur Elastomers Private Limited of ` 10 each
Reliance Strategic Investments Limited of ` 10 each
Reliance Ventures Limited of ` 10 each
Saavn Media Private Limited of ` 1 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
6% Non-Cumulative Optionally Convertible Preference Shares of Reliance
Content Distribution Limited of ` 10 each
Unquoted, partly paid up
8.5% Non-Cumulative Optionally Convertible Preference Shares of Reliance
Retail Ventures Limited of ` 10 each [` 4.125 each paid-up; (Previous Year ` 2.5
each paid up)]
In Debentures of Subsidiary Companies
Unquoted, fully paid up
Zero Coupon Unsecured Convertible Redeemable Debentures of Reliance
Industrial Investments and Holdings Limited of ` 5,000 each
Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance
Industrial Investments and Holdings Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance
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)
(` in crore)
As at 31st March, 2019
As at 31st March, 2018
Units
Amount
Units
Amount
31,39,733
1
20,000
-
44,74,74,90,000
-
-
50,000
5,66,70,00,000
1,23,17,53,117
20,20,200
26,91,150
4,66,019
44,200
-
-
-
5,667
1,232
2
2,351
5,429
61,445
44,74,74,90,000
9,73,28,000
22,500
-
5,66,70,00,000
1,15,68,53,117
20,20,200
26,91,150
-
44,747
97
-
-
5,667
1,157
2
2,351
-
55,696
6,14,905
1,108
6,12,026
1,103
4,02,800
113
4,02,800
113
-
-
13,00,00,00,000
65,000
3,62,08,075
10,500
3,62,02,475
10,499
36,76,50,000
368
36,76,50,000
368
4,37,11,94,954
35,629
2,70,11,17,000
16,391
1,71,64,000
103
1,71,64,000
103
14,39,92,000
1,296
14,39,92,000
1,296
5,34,00,60,000
5,340
-
-
54,457
94,873
80,00,00,000
1,650
80,00,00,000
1,000
1,650
1,000
8,83,143
86,20,00,000
3,11,10,000
3,75,70,000
2,00,000
442
862
31
38
-
8,83,143
86,20,00,000
3,11,10,000
3,75,70,000
2,00,000
442
862
31
38
-
287
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Particulars
As at 31st March, 2019
As at 31st March, 2018
Units
Amount
Units
Amount
(` in crore)
Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance
Eminent Trading & Commercial Private Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully Convertible Debentures of Reliance
Content Distribution Limited of ` 10 each
2,12,00,000
21
2,12,00,000
1,55,08,00,000
1,551
-
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 (FVTOCI)
In Equity Shares of Other Companies
Unquoted, fully paid up
Ahmedabad Mega Clean Association of ` 10 each [` 1,00,000;
(Previous Year ` 1,00,000)]
Petronet India Limited of ` 0.10 each [ ` 10,00,000; (Previous Year ` 10,00,000)
Petronet VK Limited of ` 10 each [` 20,000; (Previous Year ` 20,000)]
VAKT Holdings Limited of USD 0.001 each
Quoted, fully paid up
Balaji Telefilms Limited of ` 2 each
Eros International Plc of GBP 0.30 each
2,945
3,366
3,366
1,24,111
10,000
1,00,00,000
19,99,990
36,267
2,52,00,000
31,11,088
-
-
-
35
35
207
197
404
10,000
1,00,00,000
19,99,990
-
2,52,00,000
-
In Preference Shares of Other Company
Unquoted, fully paid up
10% Optionally Convertible Preference Shares of Jio Digital Fibre Private
Limited of ` 10 each
77,70,11,98,375
77,701
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 *
In Fixed Maturity Plan - Quoted, fully paid up #
Total of Investments measured at Fair Value Through Other Comprehensive Income
INVESTMENTS MEASURED AT FAIR VALUE THROUGH PROFIT AND LOSS (FVTPL)
In Equity Shares of Other Companies
Unquoted, fully paid up
Jio Digital Fibre Private Limited of ` 1 each
In Fixed Maturity Plan - Quoted, fully paid up #
Total of Investments measured at Fair Value Through Profit and Loss
2,49,54,43,338
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
Include ` 327 crore (Previous Year ` Nil) given as collateral security. (Refer Note 19)
*
# Refer Note 35 C
288
77,701
5
50
2,098
10,148
12,301
90,441
250
-
250
2,71,980
12,666
12,874
2,59,314
17
21
-
1,394
3,366
3,366
1,56,506
-
-
-
-
-
328
-
328
-
-
2
11
2,698
-
2,711
3,039
-
8,858
8,858
1,71,945
11,900
12,182
1,60,045
42
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
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
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
57,178
1,24,111
90,441
250
2,71,980
3,542
1,56,506
3,039
8,858
1,71,945
2.2
2.3
The list of subsidiaries, joint ventures and associates along with proportion of ownership interest held and country of
incorporation are disclosed in Note 35 and Note 36 of Consolidated Financial Statement.
As a part of Composite Scheme of Arrangement between Reliance Jio Infocomm Limited (RJIL), Jio Digital Fibre Private Limited
(JDFPL) and Reliance Jio Infratel Private Limited (RJIPL) (‘the scheme’) for demerger of optic fiber cable undertaking (‘the
Undertaking’) of RJIL, upon the scheme becoming effective on 31 March 2019, the Company, being shareholder of RJIL, has
received Equity Shares and Optionally Convertible Preference Shares with surplus rights (‘OCPS’) of JDFPL. Pursuant to receipt
of these Equity Shares and OCPS, the Company has allocated its cost of investments in RJIL into RJIL and JDFPL and elected
to value its investment in OCPS at Fair value through Other Comprehensive Income (FVTOCI) and accordingly fair value gain of
` 77,158 crore on OCPS has been accounted in Other Comprehensive Income. Subsequently, Company sold its controlling equity
stake in JDFPL to Digital FIbre Infrastructure Trust resulting into a total gain of ` 494 crore recognised in the statement of profit
& loss. The remaining Equity investment in JDFPL has been measured at FVTPL and OCPS continued to be measured at FVTOCI.
The Company has no control or significant influence over JDFPL post the sale of controlling stake.
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.
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
822
30,152
832
31,806
847
16,002
850
17,699
289
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
A. LOANS AND ADVANCES IN THE NATURE OF LOANS GIVEN TO SUBSIDIARIES **:
Sr.
No.
Name of the Company
As at
31st March, 2019
Maximum Balance
during the year
As at
31st March, 2018
(` in crore)
Maximum Balance
during the year
Loans - Non-Current ^
Reliance Industrial Investments and Holdings Limited
Reliance Corporate IT Park Limited
Reliance Jio Infocomm Limited
Reliance Gas Pipelines Limited
Loans - Current
Reliance Ventures Limited
Reliance Strategic Investments Limited
Reliance Gas Pipelines Limited
Reliance Energy Generation and Distribution Limited
Reliance Jio Messaging Services Limited
Reliance Ethane Holding Pte Limited
1
2
3
4
1
2
3
4
5
6
Total
14,941
5,867
9,194
150
30,152
2,312
2,322
-
242
-
-
4,876
35,028
14,941
5,867
28,750
150
2,312
3,619
-
242
-
-
12,703
3,299
-
-
16,002
1,140
1,737
-
-
-
-
2,877
18,879
13,703
4,035
-
-
1,321
1,868
155
-
34
3
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 ` Nil (Previous Year ` 6 crore).
^ Loans and Advances fall under the category of ‘Loans - Non-Current’ and are re-payable more than 1 year.
Note 1
The following five wholly-owned subsidiaries of Reliance Industrial Investments and Holdings Limited (RIIHL) hold shares of
the Company as on March 31, 2019 as set out in the table below. These shares are held by these companies pursuant to the
merger of the companies in which they were holding shares with the Company.
Sr.
No.
Name of the wholly-owned subsidiary of RIIHL
No. of shares
of the Company
1
2
3
4
5
Reliance Chemicals Limited
Reliance Polyolefins Limited
Reliance Energy & Project Development Limited
Reliance Universal Enterprises Limited
Reliance Aromatics and Petrochemicals Limited
Note 2
Investments by RIIHL in subsidiaries
In Equity Shares :
Sr.
No.
Name of the Company
Dronagiri Bokadvira East Infra Limited
Dronagiri Bokadvira North Infra Limited
Dronagiri Bokadvira South Infra Limited
Dronagiri Bokadvira West Infra Limited
Dronagiri Dongri East Infra Limited
Dronagiri Dongri North Infra Limited
Dronagiri Dongri South Infra Limited
Dronagiri Dongri West Infra Limited
Dronagiri Funde East Infra Limited
1
2
3
4
5
6
7
8
9
10 Dronagiri Funde North Infra Limited
11 Dronagiri Funde South Infra Limited
12 Dronagiri Funde West Infra Limited
13 Dronagiri Navghar East Infra Limited
14 Dronagiri Navghar North First Infra Limited
15 Dronagiri Navghar North Infra Limited
16 Dronagiri Navghar North Second Infra Limited
17 Dronagiri Navghar South First Infra Limited
290
6,22,39,998
6,11,94,924
20,58,000
1,65,00,000
2,98,89,898
No. of Shares
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
Sr.
No.
Name of the Company
18 Dronagiri Navghar South Infra Limited
19 Dronagiri Navghar South Second Infra Limited
20 Dronagiri Navghar West Infra Limited
21 Dronagiri Pagote East Infra Limited
22 Dronagiri Pagote North First Infra Limited
23 Dronagiri Pagote North Infra Limited
24 Dronagiri Pagote North Second Infra Limited
25 Dronagiri Pagote South First Infra Limited
26 Dronagiri Pagote South Infra Limited
27 Dronagiri Pagote West Infra Limited
28 Dronagiri Panje East Infra Limited
29 Dronagiri Panje North Infra Limited
30 Dronagiri Panje South Infra Limited
31 Dronagiri Panje West Infra Limited
Indiawin Sports Private Limited
32
33
Jio Estonia OU
34 Kalamboli East Infra Limited
35 Kalamboli North First Infra Limited
36 Kalamboli North Infra Limited
37 Kalamboli North Second Infra Limited
38 Kalamboli North Third Infra Limited
39 Kalamboli South First Infra Limited
40 Kalamboli South Infra Limited
41 Kalamboli West Infra Limited
42 Kanhatech Solutions Private Limited
43 Naroda Power Private Limited
44 New Emerging World Journalism Private Limited
45 Radisys India Private Limited
46 Reliance Ambit Trade Private Limited
47 Reliance Aromatics and Petrochemicals Limited
48 Reliance Chemicals Limited
49 Reliance Commercial Dealers Limited
50 Reliance Comtrade Private Limited
51 Reliance Corporate IT Park Limited
52
53 Reliance Eminent Trading & Commercial Private Limited
54 Reliance Energy and Project Development Limited
55 Reliance Exploration & Production DMCC
56 Reliance Innovative Building Solutions Private Limited
57 Reliance Jio Digital Services Private Limited
58 Reliance Jio Media Private Limited
59 Reliance Jio Messaging Services Private Limited
60 Reliance Payment Solutions Limited
61 Reliance Polyolefins Limited
62 Reliance Progressive Traders Private Limited
63 Reliance Prolific Commercial Private Limited
64 Reliance Prolific Traders Private Limited
65 Reliance Retail Finance Limited
66 Reliance Retail Insurance Broking Limited
67 Reliance Universal Enterprises Limited
68 Reliance Universal Traders Private Limited
69 Reliance Vantage Retail Limited
Jio Infrastructure Management Services Limited (Formerly Reliance Digital Media Distribution Limited)
No. of Shares
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
26,50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
7,50,00,000
24,000
30,001
2,10,000
10,00,000
10,09,300
10,10,600
37,50,000
10,00,000
2,37,99,94,480
10,000
1,00,00,000
10,09,280
1,76,200
6,46,93,950
4,00,00,000
8,60,10,000
9,73,28,000
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
291
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sr.
No.
Name of the Company
Surela Investments and Trading Limited (Formerly Surela Investments and Trading Private Limited)
70 Reliance World Trade Private Limited
71
72 The Indian Film Combine Private Limited
73 Ulwe East Infra Limited
74 Ulwe North Infra Limited
75 Ulwe South Infra Limited
76 Ulwe Waterfront East Infra Limited
77 Ulwe Waterfront North Infra Limited
78 Ulwe Waterfront South Infra Limited
79 Ulwe Waterfront West Infra Limited
80 Ulwe West Infra Limited
In Preference Shares :
Sr.
No.
1
2
3
4
5
6
7
8
Name of the Company
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
Note 3
Investments by Reliance Strategic Investments Limited in subsidiaries
In Equity Shares:
Sr.
No.
Name of the Company
Den Networks Limited
1
2 Model Economic Township Limited
Note 4
Investment by Reliance Corporate IT Park Limited in Subsidiaries
In Equity Shares:
Sr.
No.
1
2
3
Name of the Company
Naroda Power Private Limited
Reliance Commercial Dealers Limited
Reliance SMSL Limited
Note 5
Investment by Reliance Strategic Investments Limited in Subsidiaries
In Equity Shares:
Sr.
No.
1
2
Name of the Company
Den Networks Limited
Reliance Commercial Dealers Limited
Note 6
Investment by Reliance Energy Generation and Distribution Limited in Subsidiary
In Equity Shares:
Sr.
No.
Name of the Company
1
Reliance Holdings USA, Inc
292
No. of Shares
1,000
5,000
5,73,751
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
No. of Shares
31,19,96,000
1,10,58,68,620
17,37,000
1,53,000
14,90,700
12,50,00,000
1,00,00,000
1,47,06,000
No. of Shares
4,61,520
9,70,00,000
No. of Shares
50,000
75,00,000
50,000
No. of Shares
14,87,160
37,50,000
No. of Shares
1,75,405
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
Note 7
Investment by Reliance Jio Infocomm Limited in Subsidiaries
In Equity Shares:
Sr.
No.
1
2
3
Name of the Company
Reliance Jio Infocomm Pte. Limited
Reliance Jio Infocomm USA Inc.
Reliance Jio Infocomm UK Limited
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
*
Include Land and its Development Cost of ` 620 crore (Previous Year ` 620 crore)
No. of Shares
12,10,00,000
3,85,47,66,449
60,00,000
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
967
1,827
1,179
314
4,287
355
1,605
1,250
312
3,522
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
1,605
(9,440)
236
9,426
1,827
992
(8,953)
951
8,615
1,605
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
19,634
6,450
13,162
84
4,814
44,144
19,164
5,601
10,864
68
3,871
39,568
293
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Particulars
6.
INVESTMENTS - CURRENT
INVESTMENTS MEASURED AT AMORTISED COST
In Collateral Borrowing and Lending Obligation - Unquoted
Total of Investments measured at Amortised Cost
INVESTMENTS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI)
In Fixed Maturity Plan - Quoted, fully paid up ^
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 (FVTPL)
In Debentures or Bonds - Quoted, fully paid up *
In Fixed Maturity Plan - Quoted, fully paid up ^
In Government Securities - Quoted *
In Mutual Fund - Quoted ^
In Treasury Bills - Quoted
In Certificate of Deposits - Quoted
In Debentures of Other Companies - Unquoted, fully paid up
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
^ Refer Note 35 C
Include ` 13,384 crore (Previous Year ` Nil) given as collateral security. (Refer Note 19)
*
# Include ` 21 crore (Previous Year ` Nil) given as collateral security for F&O Trading.
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
7.
TRADE RECEIVABLES (UNSECURED AND CONSIDERED GOOD)
Trade Receivables
Total
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
-
-
3,358
8
23,693
27,059
7,359
-
12,835
-
-
373
11,478
452
32,497
59,556
23,933
23,933
35,623
585
585
-
5
21,542
21,547
5,824
5,359
-
2
1,943
-
-
18,017
31,145
53,277
13,133
13,133
40,144
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
-
27,059
32,497
59,556
585
21,547
31,145
53,277
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
12,110
12,110
10,460
10,460
294
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone 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 Cash Flow Statement
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
19
3,749
3,768
3,768
8
2,723
2,731
2,731
*
Include Unclaimed Dividend of ` 235 crore (Previous Year ` 259 crore) and Fixed Deposits of ` 303 crore (Previous Year ` 158 crore) with maturity of more than 12 months.
Fixed deposits of ` 2,608 crore (Previous Year ` 1,270 crore) are given 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)) #
Other Loans
Total
# Refer Note 3A for details of Loans.
10. OTHER FINANCIAL ASSETS - CURRENT
Interest Accrued on Investment
Deposits to Related Parties (Refer Note 31(IV))
Other Deposits
Others ^
Total
^ Others include fair value of derivatives.
11. TAXATION
INCOME TAX RECOGNISED IN STATEMENT OF PROFIT AND LOSS
Current Tax
Deferred Tax
Total Income Tax expenses recognised in the current year
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
4,876
-
4,876
2,883
650
3,533
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
147
10,245
3,718
3,164
17,274
118
-
792
2,946
3,856
Year ended
31st March, 2019
(` in crore)
Year ended
31st March, 2018
9,440
2,764
12,204
8,953
3,160
12,113
295
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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
Deferred tax Provision (B)
Tax Expenses recognised in Statement of Profit and Loss (A+B)
Effective Tax Rate
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
Year ended
31st March, 2019
Year ended
31st March, 2018
47,367
34.944%
16,552
(3,107)
4,006
(8,011)
9,440
3,425
(661)
2,764
12,204
25.76%
45,725
34.608%
15,825
(2,591)
3,530
(7,811)
8,953
2,788
372
3,160
12,113
26.49%
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
9,543
85
1,571
11,199
4,552
75
5,860
10,487
*
Includes (Previous year also includes Intangible Assets Under Development held for sale amounting to ` 4,353 crore) prepaid expenses and claims receivables.
13. SHARE CAPITAL
AUTHORISED SHARE CAPITAL
14,00,00,00,000 Equity Shares of ` 10 each
(14,00,00,00,000)
1,00,00,00,000 Preference Shares of ` 10 each
(1,00,00,00,000)
ISSUED, SUBSCRIBED AND PAID UP
6,33,86,93,823 Equity Shares of ` 10 each fully paid up
(6,33,46,51,022)
Total
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
14,000
1,000
15,000
6,339
6,339
14,000
1,000
15,000
6,335
6,335
296
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone 13.1
13.2
13.3
13.4
3,08,03,34,238 Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium and Capital
(3,08,03,34,238)
Redemption Reserve.
45,04,27,345 Shares were allotted on conversion / surrender of Debentures and Bonds, conversion of Term Loans, exercise of
(45,04,27,345)
Warrants, against Global Depository Shares (GDS) and re-issue of Forfeited Equity Shares, since inception.
17,18,82,820 Shares held by subsidiaries, which were allotted pursuant to the Schemes of Amalgamation sanctioned by the
(17,18,82,820)
3,44,000
(3,44,000)
Hon’ble High Courts in the previous years, do not have voting rights and are not eligible for Bonus Shares
Shares held by associates
Figures in bracket represents Previous Year's figure.
13.5 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, 2019
As at 31st March, 2018
No. of Shares
% held
No. of Shares
% held
71,08,00,410
68,88,95,274
50,81,66,996
43,19,75,079
43,14,31,608
11.21
10.87
8.02
6.81
6.81
71,08,00,410
68,88,95,274
50,81,66,996
48,29,64,286
43,14,31,608
11.22
10.88
8.02
7.62
6.81
13.6 THE RECONCILIATION OF THE NUMBER OF SHARES OUTSTANDING IS SET OUT BELOW :
Particulars
Equity Shares at the beginning of the year
Add: Shares issued on exercise of employee stock options
Add: Bonus Shares
Equity Shares at the end of the year
As at
31st March, 2019
As at
31st March, 2018
No. of Shares
No. of Shares
6,33,46,51,022
40,42,801
-
6,33,86,93,823
3,25,12,78,100
30,38,684
3,08,03,34,238
6,33,46,51,022
13.7 Options granted under ESOS-2006 prior to withdrawal of scheme, continue to be governed by ESOS-2006. 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.
13.8 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.
297
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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
As per last Balance Sheet
Add : On Employee Stock Options
Less: On issue of Bonus shares
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 ` 6 (Previous Year ` 11)]
Tax on Dividend
Transferred to Debenture Redemption Reserve
OTHER COMPREHENSIVE INCOME (OCI)
As per last Balance Sheet
Add: Movement in OCI (Net) during the year
Total
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
15
(13)
-
-
46,174
132
46,306
-
5,251
4,124
12
(3)
2,25,000
30,000
30,051
35,163
65,214
-
(30,000)
(3,554)
(728)
(4,124)
1,518
59,674
15
291
-
2
291
-
4
11
48
(48)
49,080
126
49,206
(3,032)
46,306
46,174
1,117
4,134
9,375
5,251
16
(4)
9
12
2,00,000
25,000
2,55,000
2,25,000
29,485
33,612
63,097
4
(25,000)
(3,255)
(661)
(4,134)
26,808
30,051
5,021
(3,503)
61,192
1,518
3,98,983
3,08,312
14.1 Share Application Money Pending Allotment represents application money received on account of Employees Stock
Option Scheme.
298
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
15. BORROWINGS
SECURED - AT AMORTISED COST
Non-Convertible Debentures
UNSECURED - AT AMORTISED COST
Non-Convertible Debentures
Bonds
Term Loans- from Banks
Total
As at 31st March, 2019
As at 31st March, 2018
Non-Current
Current
Non-Current
Current
(` in crore)
500
500
37,000
22,939
57,659
1,17,598
-
-
-
555
3,970
4,525
500
500
20,000
22,177
38,919
81,096
503
503
-
1,884
17,659
19,543
1,18,098
4,525
81,596
20,046
15.1 SECURED NON-CONVERTIBLE DEBENTURES REFERRED ABOVE TO THE EXTENT OF:
a)
b)
c)
` 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.
` Nil (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.
` Nil (Previous year ` 133 crore ) are secured by way of first mortgage / charge on all the properties situated at Hazira
Complex and at Patalganga Complex 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
8.75%
Total
b) Unsecured :
Rate of
Interest
6.78%
6.80%
6.95%
7.00%
7.07%
7.17%
8.30%
8.65%
8.70%
8.95%
9.05%
Total
Non-Current
2020-21
500
500
Total
500
500
2028-29
2022-23
2021-22
2020-21
Non-Current
-
-
-
-
-
-
-
3,000
500
3,000
3,500
10,000
-
-
-
5,000
-
5,000
-
-
-
-
-
10,000
-
-
-
-
-
-
7,000
-
-
-
-
7,000
2,500
2,500
2,500
-
2,500
-
-
-
-
-
-
10,000
Total
2,500
2,500
2,500
5,000
2,500
5,000
7,000
3,000
500
3,000
3,500
37,000
(` in crore)
Current
2019-20
-
-
(` in crore)
Current
2019-20
-
-
-
-
-
-
-
-
-
-
-
-
299
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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%
7.63%
8.25%
9.38%
10.25%
10.50%
Total
2096-97
2046-47
2044-45
2035-36 2027-28
2026-27 2025-26 2024-25
2023-24
2022-23
2021-22
2020-21
Total
2019-20
Non-Current*
Current *
-
-
-
-
-
-
-
-
-
-
-
86
-
86
-
-
-
-
-
-
-
-
-
-
-
-
67
67
-
-
-
-
-
-
5,186
-
-
-
-
-
-
5,186
-
-
-
-
-
-
-
1,383
-
-
-
-
-
1,383
-
-
-
-
5,532
-
-
-
34
-
-
-
-
5,566
-
-
-
-
-
-
-
-
-
235
153
-
-
388
134
132
149
156
-
-
-
-
-
-
-
-
-
571
134
132
149
156
-
6,915
-
-
-
-
-
-
-
7,486
134
132
149
156
-
-
-
-
-
-
-
-
-
571
134
132
149
156
-
-
-
-
-
-
-
-
-
571
134
132
149
156
-
-
-
-
-
-
-
-
-
571
134
132
149
156
-
-
-
-
-
-
-
-
-
571
804
792
894
936
5,532
6,915
5,186
1,383
34
235
153
86
67
23,017
134
132
149
156
-
-
-
-
-
-
-
-
-
571
*
Include ` 94 crore (Non-Current ` 78 crore and Current ` 16 crore) as prepaid finance charges.
15.4 MATURITY PROFILE OF UNSECURED TERM LOANS ARE AS SET OUT BELOW :
Term Loans- from Banks #
Non-Current
Above 5 years
1-5 years
10,214
47,926
Total
58,140
(` in crore)
Current
1 year
4,117
# Include ` 628 crore (Non-Current ` 481 crore and Current ` 147 crore) as prepaid finance charges.
15.5 The Company has satisfied all the covenants prescribed in terms of borrowings.
16. PROVISIONS - NON-CURRENT
Provision for decommissioning of Assets ^
Total
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
2,483
2,483
2,205
2,205
^
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 utilisation of assets by other fields.
17. DEFERRED TAX LIABILITIES (NET)
The movement on the deferred tax account is as follows:
At the start of the year
Charge to Statement of Profit and Loss (Note 11 )
Charge to Other Comprehensive Income
At the end of year
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
27,926
2,764
16,627
47,317
24,766
3,160
-
27,926
300
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
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
18. OTHER NON-CURRENT LIABILITIES
Advance from Related Parties (Refer Note 31 (II))
Total
19. BORROWINGS – CURRENT
SECURED - AT AMORTISED COST
Working Capital Loans
From Banks
Rupee Loans
From Others
Rupee Loans
UNSECURED - AT AMORTISED COST
Other Loans and Advances
From Banks
Foreign Currency Loans
Rupee Loans
From Others
Commercial Paper *
Total
Charge/(credit) to
(` in crore)
As at
31st March, 2018
Statement of
Profit and Loss
Other
Comprehensive
Income
As at
31st March, 2019
27,876
892
(27)
(815)
27,926
3,425
(549)
(7)
(105)
2,764
-
16,627
-
-
16,627
31,301
16,970
(34)
(920)
47,317
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
504
504
504
504
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
8,603
6,128
14,731
5,482
1,000
17,884
24,366
39,097
1,653
-
1,653
12
-
13,574
13,586
15,239
*
Maximum amount outstanding at any time during the year was ` 27,143 crore, (Previous Year ` 21,876 crore)
19.1 Working Capital Loans from Banks of ` 8,603 crore (Previous Year ` 1,653 crore) are secured by Government Securities (Refer
Note 6) and 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.
19.2 Working Capital Loans from Others of ` 6,128 crore (Previous Year ` Nil) are secured by Government Securities and Bonds
(Refer Note 2 and 6)
19.3 Refer note 35 B (iv) for maturity profile.
19.4 The Company has satisfied all the covenants prescribed in terms of borrowings.
301
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
20. TRADE PAYABLES DUE TO
Micro and Small Enterprise
Other than Micro and Small Enterprise
Total
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
229
88,012
88,241
183
88,492
88,675
20.1 There are no overdues to Micro, Small and Medium Enterprises as at March 31, 2019. An amount of ` 2.38 crore is not payable as
per the terms of contract.
21. OTHER FINANCIAL LIABILITIES - CURRENT
Current maturities of Borrowings - Non-Current
Interest accrued but not due on Borrowings
Unclaimed Dividends #
Other Payables *
Total
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
4,525
1,613
235
21,302
27,675
20,046
1,138
259
26,807
48,250
#
*
These figures do not include any amounts due and outstanding, to be credited to Investor Education and Protection Fund except ` 2 crore (Previous Year
` 19 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
Contract Liabilities
Other Payables ^
Total
^ Mainly includes statutory dues.
23. PROVISIONS - CURRENT
Provision for Employee Benefits (Refer Note 27.1) **
Other Provisions ##
Total
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
40,882
5,343
46,225
32,114
5,451
37,565
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
277
506
783
276
642
918
** 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 for excise duty payable on clearance of goods lying in stock as on 31st March, 2018 of ` 274 crore as per the estimated pattern of
dispatches. During the year, ` 274 crore was utilised for clearance of goods. Provision recognised under this class for the year is ` 269 crore which is outstanding as on
31st March, 2019. 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 ` 291 crore as at 31st March, 2018. During the year, further provision of ` 1,306 crore was made and sum of ` 1,361 crore were reversed on fulfilment
of export obligation. Closing balance on this account as at 31st March, 2019 is ` 236 crore.
2018-19
(` in crore)
2017-18
24. REVENUE FROM OPERATIONS
DISAGGREGATED REVENUE
Refining
Petrochemicals
Oil and Gas
Others
Value of Sales
Income from Services
Total ^^
^^ Net of GST
Revenue from contract with customers differ from the revenue as per contracted price due to factors such as taxes recovered, volume rebate, discounts, hedge etc.
2,46,036
1,35,516
1,992
571
3,84,115
789
3,84,904
2,01,547
1,00,340
2,468
584
3,04,939
396
3,05,335
302
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone 25. OTHER INCOME
INTEREST
Bank deposits
Debt instruments
Other Financial Assets measured at Amortised Cost
Others [` 8,38,573 (Previous Year ` 11,56,621)]
DIVIDEND INCOME
OTHER NON-OPERATING INCOME
GAIN ON FINANCIAL ASSETS *
Realised Gain
Unrealised Gain / (Loss)
Total
2018-19
(` in crore)
2017-18
85
3,231
270
-
3,483
(37)
146
5,337
278
-
1,666
939
5,761
449
604
2,605
9,419
3,586
935
253
3,446
8,220
* Refer Note 2.3
Above other income comprises of assets measured at Cost / Amortised Cost ` 2,567 crore (Previous Year ` 1,725 crore), Fair Value Through Profit and Loss
` 2,056 crore (Previous Year ` 1,900 crore), Fair Value Through Other Comprehensive Income ` 4,192 crore (Previous Year ` 4,342 crore) and Other Non-operating Income
` 604 crore (Previous Year ` 253 crore).
25.1 OTHER COMPREHENSIVE INCOME - ITEMS THAT WILL NOT BE RECLASSIFIED TO
PROFIT AND LOSS
Remeasurement of Defined Benefit Plan
Equity Instruments through OCI #
Total
# Refer Note 2.3
25.2 OTHER COMPREHENSIVE INCOME - ITEMS THAT WILL BE RECLASSIFIED TO
PROFIT AND LOSS
Debentures or Bonds
Debt Income Fund
Fixed Maturity Plan
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
2018-19
(20)
76,912
76,892
2018-19
(93)
(1,002)
186
70
12
(827)
2018-19
13,246
6,450
19,696
10,932
5,601
16,533
131
16,402
(3,294)
(` in crore)
2017-18
19
(85)
(66)
(` in crore)
2017-18
(686)
(1,769)
-
(197)
(1,736)
(4,388)
(` in crore)
2017-18
10,932
5,601
16,533
9,263
4,837
14,100
799
13,301
(3,232)
303
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
27. EMPLOYEE BENEFITS EXPENSE
Salaries and Wages
Contribution to Provident Fund and Other Funds
Staff Welfare Expenses
Total
2018-19
5,109
255
470
5,834
27.1 AS PER INDIAN ACCOUNTING STANDARD 19 “EMPLOYEE BENEFITS”, THE DISCLOSURES AS DEFINED ARE GIVEN BELOW :
Defined Contribution Plans
Contribution to Defined Contribution Plans, recognised as expense for the year is as under :
Particulars
Employer’s Contribution to Provident Fund
Employer’s Contribution to Superannuation Fund
Employer’s Contribution to Pension Scheme
2018-19
137
12
55
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
(` in crore)
2017-18
4,056
246
438
4,740
(` in crore)
2017-18
126
12
50
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
Return on Plan Assets
Employer Contribution
Benefits Paid
Fair value of Plan Assets at end of the year
(` in crore)
Gratuity (Funded)
2018-19
2017-18
766
38
43
62
(20)
(69)
820
664
76
36
50
(13)
(47)
766
(` in crore)
Gratuity (Funded)
2018-19
2017-18
766
38
22
63
(69)
820
665
76
56
16
(47)
766
304
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
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
GOI Securities
Public Securities
State Government Securities (Previous Year ` 10,98,308)
Insurance Policies
Others (including bank balances) (Previous Year ` 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)
(` in crore)
Gratuity (Funded)
As at 31st
March, 2019
As at 31st
March, 2018
820
820
-
766
766
-
(` in crore)
Gratuity (Funded)
2018-19
2017-18
43
62
(62)
43
(20)
40
20
36
50
(50)
36
(13)
(6)
(19)
As at 31st March, 2019
As at 31st March, 2018
` in crore
% Invested
` in crore
% Invested
13
-
-
806
1
820
1.59
-
-
98.29
0.12
100.00
16
1
-
749
-
766
2.09
0.13
0.01
97.76
0.01
100.00
Gratuity (Funded)
2018-19
2006-08
(Ultimate)
8%
8%
6%
2%
2017-18
2006-08
(Ultimate)
8%
8%
6%
2%
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 2018-19.
305
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
VIII) Sensitivity Analysis
Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate, expected salary
increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible
changes of the assumptions occurring at end of the reporting period , while holding all other assumptions constant. The
result of Sensitivity analysis is given below:
Particulars
Change in discounting rate (delta effect of +/- 0.5%)
Change in rate of salary increase (delta effect of +/- 0.5%)
Change in rate of employee turnover (delta effect of +/- 0.5%)
(` in crore)
As at 31st March, 2019
As at 31st March, 2018
Decrease
Increase
Decrease
Increase
22
23
4
23
24
3
21
22
4
23
23
4
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 in the
previous year. A sum of ` 1 crore had been paid during the previous year and debited to the Statement of Profit and Loss under
the head “Employee Benefits Expense”.
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.
Financial Year
(Year of Grant)
Number
Financial Year of
Vesting
Range of Exercise
price (`)
Range of Fair value
at Grant Date (`)
i)
ii)
Details of Employee Stock Options granted upto 31st March, 2015 but not vested as on 1st April, 2015
11,03,520
2006-07
26,400
2008-09
11,520
2010-11
33,710
2011-12
1,20,214
2013-14
90,838
2014-15
13,86,202
Sub Total
Details of Employee Stock Options granted from 1st April, 2015 to 31st March, 2019
2015-16
2016-17
Sub Total
2015-16
2015-16 & 2016-17
2015-16
2015-16
2015-16 to 2018-19
2015-16 to 2019-20
321.00
322.30
464.50
382.50 - 486.00
430.00 - 440.00
421.60 - 480.40
2016-17 to 2019-20
2017-18 to 2020-21
29,934
1,48,908
1,78,842
443.70
548.00
154.90
156.20 - 164.90
227.20
194.20 - 241.00
140.70 - 226.50
126.90 - 236.50
127.30 - 173.20
149.80 - 204.50
Total
15,65,044 #
#
Includes options exercised, expired / lapsed upto 31st March, 2019 i.e. 10,66,805. Accordingly balance of outstanding options granted as on 31st March,
2019 is 4,98,239.
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.
306
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
b) Compensation Expenses arising on account of the Share Based Payments
Year ended
31st March, 2019
(` in crore)
Year ended
31st March, 2018
Expenses arising from equity – settled share-based payment transactions
0.64
1.29
c)
Fair Value on the grant date
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 year ended 31st March, 2017 included as mentioned below. Further, no new
stock options were granted during FY 2018-19;
a) Weighted average exercise price `1,096
b) Grant date: 05.10.2016 & 10.10.2016
c) Vesting year: 2017-18 to 2020-21
d) Share Price at grant date: ` 1,089 at 05.10.2016 & ` 1,096 at 10.10.2016
e) Expected price volatility of Company's share: 25.1% to 26.5%
f) Expected dividend yield: 1.07%
g) 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
Exercised during the year
Expired / Lapsed during the year
Balance at the end of the year
As at 31st March, 2019
As at 31st March, 2018
Number of
share options
Weighted average
exercise price
Number of share
options
Weighted average
exercise price
7,86,812
-
(2,86,573)
(2,000)
4,98,239
380.08
-
403.58
321.00
366.82
5,44,682
5,44,682
(1,73,240)
(1,29,312)
7,86,812
Weighted average of remaining contractual life of the share options outstanding at the end of year is 414 days (Previous Year 288 days)
28. FINANCE COSTS
Interest Expenses *
Applicable loss on foreign currency transactions and translation
Total
*
Interest Expenses are net of Interest Capitalised of ` 2,622 crore (Previous Year ` 3,302 crore)
2018-19
8,770
981
9,751
379.41
379.41
338.37
430.31
380.08
(` in crore)
2017-18
3,901
755
4,656
307
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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
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
2018-19
(` in crore)
2017-18
6,344
15,723
1,017
126
1,328
126
159
16
24,839
6,493
872
970
8,335
462
1,453
90
1,045
1,113
511
249
22
37
935
5,917
2,446
36,645
5,376
13,565
1,495
97
1,145
52
(95)
11
21,646
5,811
854
446
7,111
758
1,049
91
902
606
427
173
18
17
790
4,831
2,092
31,496
#
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.
29.1 PAYMENT TO AUDITORS AS :
Particulars
(a) Statutory Audit Fees
(b) Tax Audit Fees
(c) Certification and Consultation Fees
(d) Cost Audit Fees
Total
2018-19
11
1
9
1
22
(` in crore)
2017-18
10
1
6
1
18
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.
308
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
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 ` 811 crore (Previous Year ` 703 crore).
(b) Expenditure related to Corporate Social Responsibility is ` 849 crore (Previous Year ` 745 crore).
Particulars
Rural Transformation
Health
Education
Sports For Development
Disaster Response
Urban Renewal [` 36,89,332; (Previous Year ` 33,94,505)]
Arts, Culture and Heritage
Total
2018-19
(` in crore)
2017-18
133
113
527
49
26
-
1
849
181
148
371
43
1
-
1
745
(c)
Out of note (b) above, ` 289 crore (Previous Year ` 672 crore) contributed to Reliance Foundation, ` 41 crore (Previous Year
` 38 crore) to Reliance Foundation Youth Sports and ` 476 crore (Previous Year ` 1 crore) to Reliance Foundation Institution of
Education and Research which are related parties.
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
* Dilutive impact of Employee Stock Option Scheme.
2018-19
2017-18
10
55.48
35,163
10
53.08
33,612
6,33,76,24,192
55.47
35,163
6,33,26,37,065
53.04
33,612
6,33,90,37,425
6,33,76,93,539
6,33,76,24,192
14,13,233
6,33,90,37,425
6,33,26,37,065
50,56,474
6,33,76,93,539
309
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 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 RELATIONSHIPS:
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Name of the Related Party
Relationship
ABC Cable Network Private Limited ^
Adhunik Cable Network Private Limited ^
Adventure Marketing Private Limited #
AETN18 Media Private Limited #
Affinity Names Inc.
Ambika DEN Cable Network Private Limited ^
Amogh Broad Band Services Private Limited ^
Angel Cable Network Private Limited ^
Antique Communications Private Limited ^
Augment Cable Network Private Limited ^
Aurora Algae Pty Limited &
Aurora Algae Inc.
Bali Den Cable Network Private Limited ^
Bee Network & Communication Private Limited ^
Bhadohi DEN Entertainment Private Limited ^
Big Den Entertainment Private Limited ^
Binary Technology Transfers Private Limited ^
Blossom Entertainment Private Limited ^
Cab-i-Net Communications Private Limited ^
Capital18 Fincap Private Limited # &
Channels India Network Private Limited ^
Chennai Cable Vision Network Private Limited ^
Colorful Media Private Limited #
Colosceum Media Private Limited #
Crystal Vision Media Private Limited ^
Den A.F. Communication Private Limited ^
Den Aman Entertainment Private Limited ^
DEN Ambey Cable Networks Private Limited ^
Den Ashu Cable Private Limited ^
DEN BCN Suncity Network Private Limited ^
Den Bindra Network Private Limited ^
Den Broadband Private Limited ^
Den Budaun Cable Network Private Limited ^
Den Citi Channel Private Limited ^
Den Classic Cable TV Services Private Limited ^
DEN Crystal Vision Network Private Limited ^
Den Digital Cable Network Private Limited ^
Den Discovery Digital Network Private Limited ^
Den Elgee Cable Vision Private Limited ^
Den Enjoy Cable Networks Private Limited ^
Den Enjoy Navaratan Network Private Limited ^
DEN Enjoy SBNM Cable Network Private Limited ^
Den F K Cable TV Network Private Limited ^
Den Faction Communication System Private Limited ^
Den Fateh Marketing Private Limited ^
Subsidiary
^ Relationship established during the year
# Control by Independent Media Trust of which RIL is the sole beneficiary
& Ceased to be related party
310
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
Name of the Related Party
Sr.
No.
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
94
95
^ Relationship established during the year
# Control by Independent Media Trust of which RIL is the sole beneficiary
& Ceased to be related party
Den Futuristic Cable Networks Private Limited ^
DEN Harsh Mann Cable Network Private Limited ^
Den Jai Ambey Vision Cable Private Limited ^
Den Kashi Cable Network Private Limited ^
Den Kattakada Telecasting and Cable Services Private Limited ^
DEN Krishna Cable TV Network Private Limited ^
Den Maa Sharda Vision Cable Networks Private Limited ^
Den Mahendra Satellite Private Limited ^
Den Malabar Cable Vision Private Limited ^
DEN Malayalam Telenet Private Limited ^
Den MCN Cable Network Private Limited ^
Den Mod Max Cable Network Private Limited ^
DEN MTN Star Vision Networks Private Limited ^
Den Nashik City Cable Network Private Limited ^
Den Networks Limited ^
DEN Patel Entertainment Network Private Limited ^
DEN Pawan Cable Network Private Limited ^
Den Pradeep Cable Network Private Limited ^
DEN Prayag Cable Networks Private Limited ^
Den Premium Multilink Cable Network Private Limited ^
Den Prince Network Private Limited ^
Den Radiant Satelite Cable Network Private Limited ^
Den Rajkot City Communication Private Limited ^
Den Sahyog Cable Network Private Limited ^
Den Sariga Communications Private Limited ^
Den Satellite Cable TV Network Private Limited ^
Den Saya Channel Network Private Limited ^
Den Steel City Cable Network Private Limited ^
DEN STN Television Network Private Limited ^
Den Supreme Satellite Vision Private Limited ^
DEN Varun Cable Network Private Limited ^
DEN VM Magic Entertainment Private Limited ^
Den-Manoranjan Satellite Private Limited ^
Desire Cable Network Private Limited ^
Devine Cable Network Private Limited ^
Digital18 Media Limited # &
Disk Cable Network Private Limited ^
Divya Drishti Den Cable Network Private Limited ^
Drashti Cable Network Private Limited ^
Dronagiri Bokadvira East Infra Limited ^
Dronagiri Bokadvira North Infra Limited ^
Dronagiri Bokadvira South Infra Limited ^
Dronagiri Bokadvira West Infra Limited ^
Dronagiri Dongri East Infra Limited ^
Dronagiri Dongri North Infra Limited ^
Dronagiri Dongri South Infra Limited ^
Dronagiri Dongri West Infra Limited ^
Dronagiri Funde East Infra Limited ^
Dronagiri Funde North Infra Limited ^
Dronagiri Funde South Infra Limited ^
Relationship
Subsidiary
311
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Relationship
Subsidiary
Name of the Related Party
Dronagiri Funde West Infra Limited ^
Dronagiri Navghar East Infra Limited ^
Dronagiri Navghar North First Infra Limited ^
Dronagiri Navghar North Infra Limited ^
Dronagiri Navghar North Second Infra Limited ^
Dronagiri Navghar South First Infra Limited ^
Dronagiri Navghar South Infra Limited ^
Dronagiri Navghar South Second Infra Limited ^
Dronagiri Navghar West Infra Limited ^
Dronagiri Pagote East Infra Limited ^
Dronagiri Pagote North First Infra Limited ^
Dronagiri Pagote North Infra Limited ^
Dronagiri Pagote North Second Infra Limited ^
Dronagiri Pagote South First Infra Limited ^
Dronagiri Pagote South Infra Limited ^
Dronagiri Pagote West Infra Limited ^
Dronagiri Panje East Infra Limited ^
Dronagiri Panje North Infra Limited ^
Dronagiri Panje South Infra Limited ^
Dronagiri Panje West Infra Limited ^
E-18 Limited # &
e-Eighteen.com Limited #
Ekta Entertainment Network Private Limited ^
Elite Cable Network Private Limited ^
Eminent Cable Network Private Limited ^
Equator Trading Enterprises Private Limited # &
Ethane Crystal LLC
Ethane Emerald LLC
Ethane Opal LLC
Ethane Pearl LLC
Ethane Sapphire LLC
Ethane Topaz LLC
Fab Den Network Private Limited ^
Fortune (Baroda) Network Private Limited ^
Fun Cable Network Private Limited ^
Galaxy Den Media & Entertainment Private Limited ^
Gemini Cable Network Private Limited ^
Genesis Colors Limited ^
Genesis La Mode Private Limited ^
Genesis Luxury Fashion Private Limited ^
GLB Body Care Private Limited ^
GLF Lifestyle Brands Private Limited ^
Glimpse Communications Private Limited ^
GML India Fashion Private Limited ^
Greycells18 Media Limited #
Sr.
No.
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141 Hathway Bhawani Cabletel & Datacom Limited ^
142 Hathway Broadband Private Limited ^
143 Hathway Cable and Datacom Limited ^
144 Hathway Cnet Private Limited ^
^ Relationship established during the year
# Control by Independent Media Trust of which RIL is the sole beneficiary
& Ceased to be related party
312
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone Relationship
Subsidiary
Name of the Related Party
Sr.
No.
145 Hathway Digital Private Limited ^
146 Hathway Enjoy Cable Network Private Limited ^
147 Hathway Gwalior Cable & Datacom Private Limited ^
148 Hathway Internet Satellite Private Limited ^
149 Hathway JMD Farukhabad Cable Network Private Limited ^
150 Hathway Kokan Crystal Cable Network Private Limited ^
151 Hathway Krishna Cable Private Limited ^
152 Hathway Mantra Cable & Datacom Private Limited ^
153 Hathway Media Vision Private Limited ^
154 Hathway Mysore Cable Network Private Limited ^
155 Hathway Nashik Cable Network Private Limited ^
156 Hathway New Concept Cable & Datacom Private Limited ^
157 Hathway Software Developers Private Limited ^
158 Hathway Space Vision Cabletel Private Limited ^
159 Hathway United Cables Private Limited ^
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
Ibn18 (Mauritius) Limited # &
Ideal Cables Private Limited ^
IndiaCast Media Distribution Private Limited #
IndiaCast UK Limited #
IndiaCast US Limited #
Indiavidual Learning Private Limited ^
Indiawin Sports Private Limited
Indradhanush Cable Network Private Limited ^
Infomedia Press Limited #
ITV Interactive Media Private Limited ^
Jhankar Cable Network Private Limited ^
Jio Cable and Broadband Holdings Private Limited ^ $
Jio Content Distribution Holdings Private Limited ^ $
Jio Digital Cableco Private Limited ^$
Jio Digital Distribution Holdings Private Limited ^ $
Jio Digital Fibre Private Limited ^&
Jio Estonia OU ^
Jio Futuristic Digital Holdings Private Limited ^ $
Jio Information Solutions Limited
Jio Infrastructure Management Services Limited
(Formerly Reliance Digital Media Distribution Limited)
Jio Internet Distribution Holdings Private Limited ^ $
Jio Television Distribution Holdings Private Limited ^ $
Kalamboli East Infra Limited ^
Kalamboli North First Infra Limited ^
Kalamboli North Infra Limited ^
Kalamboli North Second Infra Limited ^
Kalamboli North Third Infra Limited ^
Kalamboli South First Infra Limited ^
Kalamboli South Infra Limited ^
Kalamboli West Infra Limited ^
Kanhatech Solutions Limited
Kishna DEN Cable Networks Private Limited ^
Liberty Media Vision Private Limited ^
180
181
182
183
184
185
186
187
188
189
190
191
192
^ Relationship established during the year
# Control by Independent Media Trust of which RIL is the sole beneficiary
$ Control by Digital Media Distribution Trust of which Reliance Content Distribution Limited is the sole beneficiary, which is a wholly-owned subsidiary of the Company
& Ceased to be related party
313
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Relationship
Subsidiary
Name of the Related Party
Libra Cable Network Private Limited ^
Sr.
No.
193
194 M Entertainments Private Limited ^
195 Mahadev Den Cable Network Private Limited ^
196 Mahavir Den Entertainment Private Limited ^
197 Maitri Cable Network Private Limited ^
198 Mansion Cable Network Private Limited ^
199 Marble Cable Network Private Limited ^
200 Meerut Cable Network Private Limited ^
201 Mindex 1 Limited ^
202 Model Economic Township Limited
203 Moneycontrol Dot Com India Limited #
204 Mountain Cable Network Private Limited ^
205 Multi Channel Cable Network Private Limited ^
206 Multi Star Cable Network Private Limited ^
207 Multitrack Cable Network Private Limited ^
208 Naroda Power Private Limited
209 Nectar Entertainment Private Limited ^
210 Network18 Holdings Limited # &
211 Network18 Media & Investments Limited #
212 New Emerging World of Journalism Private Limited ^
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
Panorama Television Private Limited # &
Radiant Satellite (India) Private Limited ^
Radisys B.V. ^
Radisys Canada, Inc. ^
Radisys Cayman Limited ^
Radisys Convedia (Ireland) Limited ^
Radisys Corporation ^
Radisys GmbH ^
Radisys India Private Limited ^
Radisys International LLC ^
Radisys International Singapore Pte. Ltd. ^
Radisys Poland sp. z o.o ^
Radisys Spain S.L.U. ^
Radisys Systems Equipment Trading (Shanghai) Co. Ltd. ^
Radisys Technologies (Shenzhen) Co., Ltd. ^
Radisys UK Limited ^
RB Holdings Private Limited #
RB Media Holdings Private Limited #
RB Mediasoft Private Limited #
Recron (Malaysia) Sdn. Bhd.
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
^ Relationship established during the year
# Control by Independent Media Trust of which RIL is the sole beneficiary
& Ceased to be related party
314
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone Sr.
No.
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
Name of the Related Party
Relationship
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
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 Industries Uruguay Petroquímica S.A. (Formerly Dreketi S.A.)
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 Navi Mumbai Infra 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 @
Subsidiary
^ Relationship established during the year
@ Control by Petroleum Trust of which Reliance Industrial Investments and Holdings Limited is the sole beneficiary, which is a wholly-owned subsidiary of the Company
& Ceased to be related party
315
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Name of the Related Party
Relationship
Subsidiary
Sr.
No.
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
Reliance-GrandOptical Private Limited
Resolute Land Consortium Projects Limited &
Rhea Retail Private Limited ^
RIL Exploration and Production (Myanmar) Company Limited &
RIL USA, Inc.
Roptonal Limited #
Rose Entertainment Private Limited ^
RP Chemicals (Malaysia) Sdn. Bhd.
RRB Investments Private Limited # &
RRB Mediasoft Private Limited #
RRK Finhold Private Limited # &
RVT Finhold Private Limited # &
RVT Media Private Limited # &
Saavn Inc. ^
Saavn LLC ^
Saavn Media Private Limited ^
Sanmati DEN Cable TV Network Private Limited ^
Sanmati Entertainment Private Limited ^
Santol Commercials Private Limited &
Setpro18 Distribution Limited # &
Shree Sidhivinayak Cable Network Private Limited ^
Silverline Television Network Private Limited ^
Sree Gokulam Starnet Communication Private Limited ^
Srishti DEN Networks Private Limited ^
Surela Investment and Trading Limited
(Formerly Surela Investment and Trading Private Limited)
Tangerine Agro Private Limited &
318
Television Eighteen Mauritius Limited # &
319
Television Eighteen Media and Investments Limited # &
320
The Indian Film Combine Private Limited ^
321
Trident Entertainment Private Limited ^
322
TV18 Broadcast Limited #
323
324 Ulwe East Infra Limited ^
325 Ulwe North Infra Limited ^
326 Ulwe South Infra Limited ^
327 Ulwe Waterfront East Infra Limited ^
328 Ulwe Waterfront North Infra Limited ^
329 Ulwe Waterfront South Infra Limited ^
330 Ulwe Waterfront West Infra Limited ^
331 Ulwe West Infra Limited ^
332 United Cable Network (Digital) Private Limited ^
333 UTN Cable Communications Private Limited ^
VBS Digital Distribution Network Private Limited ^
334
Viacom18 Media (UK) Limited #
335
Viacom18 Media Private Limited #
336
Viacom18 US Inc. #
337
Victor Cable TV Network Private Limited ^
338
339
Vision India Network Private Limited ^
340 Watermark Infratech Private Limited #
^ Relationship established during the year
# Control by Independent Media Trust of which RIL is the sole beneficiary
& Ceased to be related party
316
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone Name of the Related Party
Sr.
No.
341 Web18 Holdings Limited # &
342 Web18 Software Services Limited # &
343 Win Cable and Datacom Private Limited ^
Digital Media Distribution Trust ^
344
345
Independent Media Trust
346 Network18 Media Trust
Petroleum Trust
347
Jio Payments Bank Limited
348
Rutvi Project Managers Private Limited ^
349
East West Pipeline Limited
350
Gujarat Chemical Port Terminal Company Limited
351
Indian Vaccines Corporation Limited
352
Reliance Europe Limited
353
Reliance Industrial Infrastructure Limited
354
Jamnagar Utilities & Power Private Limited
355
(Formerly Reliance Utilities and Power Private Limited)
Sikka Ports and Terminals Limited
Shri Mukesh D. Ambani
Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri P. M. S. Prasad
Shri Pawan Kumar Kapil
Shri Alok Agarwal
Shri Srikanth Venkatachari
Shri K. Sethuraman
Smt. Savithri Parekh **
Smt. Nita M. Ambani
Dhirubhai Ambani Foundation
356
357
358
359
360
361
362
363
364
365
366
367
368 Hirachand Govardhandas Ambani Public Charitable Trust
369 HNH Trust and HNH Research Society
370
371
372
373
374
375
376
377
378
379
380
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Reliance Foundation Institution of Education and Research
Reliance Foundation Youth Sports
IPCL Employees Provident Fund Trust
IPCL Employees Gratuity Fund - Baulpur Unit
Reliance Industries Limited Vadodara Units Employees Supernnuation Fund
RIL Vadodara Unit Employees Gratuity Fund
Reliance Employees Provident Fund Bombay
Reliance Industries Limited Staff Superannuation Scheme
Reliance Industries Limited Employees Gratuity Fund
# Control by Independent Media Trust of which RIL is the sole beneficiary
^ Relationship established during the year
** Appointed w.e.f. 29.03.2019
& Ceased to be related party
Relationship
Subsidiary
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 Benefit
317
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
(II)
TRANSACTIONS DURING THE YEAR WITH RELATED PARTIES :
Sr.
No.
1
2
3
4
5
6
7
8
9
Nature of Transactions (Excluding Reimbursements)
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
Sale of Businesses (Through Slump Sale)
Sale of Property, Plant and Equipment
Purchases of Goods / Services
10
Electric Power, Fuel and Water
11 Hire Charges
12
Employee Benefits Expense
13 Payment to Key Managerial Personnel/Relative
14
Sales and Distribution Expenses
15 Rent
16 Professional Fees
17 General Expenses #
18 Donations
Balances as at 31st March, 2019
1
2
3
4
5
6
7
8
9
Investments
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
# Does not include sitting fees of Non-Executive Directors of ` 2 crore
*
Include reimbursements
318
Subsidiaries/
Beneficiary
Associates/
Joint
Venture
Key Managerial
Personnel/
Relative
(` in crore)
Others
Total
1,600
1,368
33,180
34,973
65,097
-
26,389
5,944
31,444
20,042
2,401
1,586
77
-
22
-
21,623
9,898
-
-
400
-
915
850
-
-
2
-
-
-
258
301
531
747
-
-
1,23,863
1,56,328
1,855
1,388
35,028
18,885
10,485
239
2,007
1,680
504
504
1,179
1,250
85
75
84,508
49,106
1,801
1,689
213
126
70
-
3,768
-
(25)
(10)
333
239
246
249
-
-
1
-
1,447
721
5,140
4,656
869
849
-
-
-
-
2,066
2,585
10
11
33
42
13
12
-
-
248
3,720
30
111
-
-
583
608
815
666
-
-
-
-
-
-
1,419
1,522
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
101
97
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
498
426
-
-
-
-
-
-
-
-
-
-
851
719
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,813
1,494
33,250
34,973
68,865
-
26,364
5,934
31,777
20,281
2,647
1,835
77
-
23
-
23,070
10,619
5,140
4,656
1,269
849
1,413
1,276
101
97
2,068
2,585
10
11
291
343
544
759
851
719
1,24,111
1,60,048
1,885
1,499
35,028
18,885
11,068
847
2,822
2,346
504
504
1,179
1,250
85
75
85,927
50,628
1,801
1,689
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
(III) DISCLOSURE IN RESPECT OF MAJOR RELATED PARTY TRANSACTIONS DURING THE YEAR :
Particulars
Relationship
2018-19
2017-18
(` in crore)
1
2
3
4
Purchase of Property, Plant and Equipment and Intangible Assets
Affinity Names Inc.
Gujarat Chemical Port Terminal Company Limited
Jamnagar Utilities & Power Private Limited
(Formerly Reliance Utilities and Power Private Limited)
Reliance Corporate IT Park Limited
Reliance Industrial Infrastructure Limited
Reliance Petro Marketing Limited
Reliance Retail Limited
Reliance Sibur Elastomers Private Limited
Sikka Ports and Terminals Limited
Purchase / Subscription of Investments
Indiavidual Learning Private Limited ^
Jio Payments Bank Limited
Radisys Corporation ^
Reliance Content Distribution Limited
Reliance Energy Generation and Distribution Limited
Reliance Global Energy Services Limited
Reliance Industrial Investments and Holdings Limited
Reliance Industries (Middle East) DMCC
Reliance Industries Uruguay Petroquímica S.A. (Formerly Dreketi S.A.)
Reliance Jio Infocomm Limited
Reliance Prolific Traders Private Limited
Reliance Retail Ventures Limited
Reliance Sibur Elastomers Private Limited
Rutvi Project Managers Private Limited ^
Saavn Media Private Limited ^
Sale / Redemption of Investments
East West Pipeline Limited *
Reliance Jio Infocomm Limited #
Reliance Jio Messaging Services Limited
Net Loans and Advances, Deposits Given / (Returned)
Gujarat Chemical Port Terminal Company Limited
Reliance Commercial Dealers Limited
Reliance Corporate IT Park Limited
Reliance Energy Generation and Distribution Limited
Reliance Ethane Holding Pte Limited
Reliance Gas Pipelines Limited
Reliance Industrial Investments and Holdings Limited
Reliance Industries (Middle East) DMCC
Reliance Industries Uruguay Petroquímica S.A. (Formerly Dreketi S.A.)
Reliance Jio Infocomm Limited #
Reliance Jio Messaging Services Limited
Reliance Prolific Traders Private Limited
Reliance Strategic Investments Limited
Reliance Ventures Limited
Subsidiary
Associate
Associate
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Joint Venture
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Joint Venture
Subsidiary
Associate
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
2
1
15
1,584
14
-
13
1
183
327
70
539
6,891
2
23
19,238
5
1
-
-
650
75
1
5,429
3,768
65,000
97
(25)
-
12,812
242
-
150
2,238
(5)
(1)
9,195
-
-
584
1,173
-
8
110
1,334
1
2
30
1
7
-
-
-
-
-
-
644
-
-
31,340
1,296
1,000
693
-
-
-
-
-
(10)
64
2,164
-
(3)
-
4,092
5
1
-
(34)
(1,296)
(89)
1,040
^ Relationship established during the year
*
#
Investment in Preference shares of East West Pipeline Limited sold to Jamnagar Utilities & Power Plant Limited and Sikka Ports and Terminals Limited.
The Company had Investment of ` 65,000 crore in preference shares of Reliance Jio Infocomm Limited (RJIL) which, during the year, converted into Loan given to
RJIL. Subsequently, loan amounting ` 57,178 crore was settled by issue of 9% Non-convertible debentures by Jio Digital Fibre Private Limited and Reliance Jio
Infratel Private Limited amounting ` 45,342 crore and ` 11,836 crore respectively consequent to a Composite Scheme of Arrangement (Refer note 2.3).
319
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Particulars
Relationship
2018-19
2017-18
(` in crore)
5
6
Revenue from Operations
Associate
East West Pipeline Limited
Gujarat Chemical Port Terminal Company Limited
Associate
Jamnagar Utilities & Power Private Limited (Formerly Reliance Utilities and Power Private Limited) Associate
Subsidiary
Recron (Malaysia) Sdn. Bhd.
Subsidiary
Reliance Commercial Dealers Limited
Subsidiary
Reliance Corporate IT Park Limited
Subsidiary
Reliance Energy Generation and Distribution Limited
Subsidiary
Reliance Gas Pipelines Limited
Subsidiary
Reliance Global Energy Services (Singapore) Pte Ltd.
Associate
Reliance Industrial Infrastructure Limited
Subsidiary
Reliance Industrial Investments and Holdings Limited
Subsidiary
Reliance Industries (Middle East) DMCC
Subsidiary
Reliance Jio Infocomm Limited
Subsidiary
Reliance Petro Marketing Limited
Subsidiary
Reliance Retail Limited
Subsidiary
Reliance Sibur Elastomers Private Limited
Subsidiary
RIL USA, Inc.
Associate
Sikka Ports and Terminals Limited
Other Income
Associate
East West Pipeline Limited
Subsidiary
Ethane Crystal LLC
Subsidiary
Ethane Emerald LLC
Subsidiary
Ethane Opal LLC
Subsidiary
Ethane Pearl LLC
Subsidiary
Ethane Sapphire LLC
Subsidiary
Ethane Topaz LLC
Subsidiary
Greycells18 Media Limited
Gujarat Chemical Port Terminal Company Limited
Associate
Jamnagar Utilities & Power Private Limited (Formerly Reliance Utilities and Power Private Limited) Associate
Subsidiary
Jio Information Solutions Limited
Subsidiary
Network18 Media & Investments Limited
Subsidiary
Recron (Malaysia) Sdn. Bhd.
Subsidiary
Reliance Brands Limited
Subsidiary
Reliance Commercial Dealers Limited
Subsidiary
Reliance Corporate IT Park Limited
Associate
Reliance Europe Limited
Subsidiary
Reliance Gas Pipelines Limited
Subsidiary
Reliance Global Energy Services (Singapore) Pte Ltd.
Subsidiary
Reliance Holding USA, Inc.
Associate
Reliance Industrial Infrastructure Limited
Subsidiary
Reliance Industrial Investments and Holdings Limited
Subsidiary
Reliance Jio Infocomm Limited
Subsidiary
Reliance Jio Messaging Services Limited
Subsidiary
Reliance Lifestyle Holdings Limited
Subsidiary
Reliance Petro Marketing Limited
Subsidiary
Reliance Sibur Elastomers Private Limited
Subsidiary
Reliance Strategic Investments Limited
Subsidiary
Reliance Ventures Limited
Subsidiary
RIL USA, Inc.
Associate
Sikka Ports and Terminals Limited
320
33
1
278
1,614
12
165
1
1,412
10,984
-
1,192
1,743
166
13,098
34
214
809
19
229
1
1
1
1
1
1
1
-
-
-
1
7
3
-
473
15
7
2
215
2
1,102
246
-
2
-
6
244
85
5
-
35
2
200
882
14
39
-
649
5,852
1
1,243
-
20
9,978
20
275
1,067
1
218
-
-
-
-
-
-
10
3
13
7
-
1
257
15
1
7
191
2
902
27
3
-
37
11
71
54
3
1
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone Particulars
7
8
9
Sale of Businesses (Through Slump Sale)
Reliance Corporate IT Park Limited
Sale of Property, Plant and Equipment
Gujarat Chemical Port Terminal Company Limited
Reliance Sibur Elastomers Private Limited
Purchases of Goods / Services
Gujarat Chemical Port Terminal Company Limited
IndiaCast Media Distribution Private Limited
Jamnagar Utilities & Power Private Limited
(Formerly Reliance Utilities and Power Private Limited)
Reliance Gas Pipelines Limited
Reliance Global Energy Services (Singapore) Pte Ltd.
Reliance Industrial Infrastructure Limited
Reliance Industries (Middle East) DMCC
Reliance Petro Marketing Limited
Reliance Retail Limited
Sikka Ports and Terminals Limited
10 Electric Power, Fuel and Water
Jamnagar Utilities & Power Private Limited
(Formerly Reliance Utilities and Power Private Limited)
11 Hire Charges
East West Pipeline Limited
Reliance Gas Pipelines Limited
Reliance Industrial Infrastructure Limited
Reliance Sibur Elastomers Private Limited
Sikka Ports and Terminals Limited
12 Employee Benefits Expense
IPCL employees Provident fund Trust
Reliance Employees Provident Fund Bombay
Reliance Industries Limited Vadodara Unit Employees superannuation Fund
Reliance Industries Limited Employees Gratuity fund
Reliance Industries Limited Staff superannuation scheme
Reliance Corporate IT Park Limited
Reliance Retail Limited
13 Payment to Key Managerial Personnel / Relative
Shri Mukesh D. Ambani
Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri P.M.S. Prasad
Shri Pawan Kumar Kapil
Shri Alok Agarwal
Shri Srikanth Venkatachari
Shri K. Sethuraman
Smt. Savithri Parekh**
Smt. Nita M. Ambani
14 Sales and Distribution Expenses
Gujarat Chemical Port Terminal Company Limited
Reliance Payment Solutions Limited
Reliance Retail Limited
Sikka Ports and Terminals Limited
* Also include employee contribution.
** Appointed w.e.f. 29.03.2019
Relationship
2018-19
2017-18
(` in crore)
Subsidiary
Associate
Subsidiary
Associate
Subsidiary
Associate
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Associate
77
1
22
160
11
6
1,453
2
21
20,134
1
21
1,259
-
-
-
109
-
1
1,060
-
21
8,838
-
-
589
Associate
5,140
4,656
Associate
Subsidiary
Associate
Subsidiary
Associate
Other *
Other *
Other *
Other *
Other *
Subsidiary
Subsidiary
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
Relative of KMP
Associate
Subsidiary
Subsidiary
Associate
759
399
23
1
87
109
314
1
63
11
887
28
15
21
21
10
4
12
14
2
-
2
63
1
1
2,003
475
-
40
-
334
110
287
2
16
11
835
15
15
20
20
9
3
12
13
3
-
2
86
-
-
2,499
321
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Relationship
2018-19
2017-18
(` in crore)
Particulars
15 Rent
Reliance Industrial Infrastructure Limited
16 Professional Fees
Reliance Corporate IT Park Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Reliance Industries (Middle East) DMCC
Reliance Industries Uruguay Petroquímica S.A. (Formerly Dreketi S.A.)
Reliance Jio Infocomm Limited
Reliance Payment Solutions Limited
17 General Expenses
Reliance Commercial Dealers Limited
Reliance Jio Infocomm Limited
Reliance Retail Limited
Sikka Ports and Terminals Limited
18 Donations
Hirachand Govardhandas Ambani Public Charitable Trust
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Reliance Foundation Institution of Education and Research
Reliance Foundation Youth Sports
(IV) BALANCES AS AT 31ST MARCH, 2019
Associate
Subsidiary
Associate
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Others
Others
Others
Others
Others
Particulars
Relationship
1
2
3
Loans and Advances
Reliance Corporate IT Park Limited
Reliance Energy Generation and Distribution Limited
Reliance Gas Pipelines Limited
Reliance Industrial Investments and Holdings Limited
Reliance Industries (Middle East) DMCC
Reliance Industries Uruguay Petroquímica S.A. (Formerly Dreketi S.A.)
Reliance Jio Infocomm Limited
Reliance Strategic Investments Limited
Reliance Ventures Limited
Deposits
Gujarat Chemical Port Terminal Company Limited
Jamnagar Utilities & Power Private Limited
(Formerly Reliance Utilities and Power Private Limited)
Reliance Commercial Dealers Limited
Reliance Corporate IT Park Limited
Reliance Jio Infocomm Limited
Sikka Ports and Terminals Limited
Financial Guarantees
Recron (Malaysia) Sdn. Bhd.
Reliance Europe 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 Infocomm Limited
Reliance Sibur Elastomers Private Limited
RIL USA, Inc.
322
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
10
251
26
7
1
2
2
3
429
36
66
13
5
40
289
476
41
11
300
35
7
1
-
-
-
659
14
74
12
2
6
672
1
38
As at
31st March,
2019
(` in crore)
As at
31st March,
2018
5,867
242
150
14,941
-
-
9,194
2,322
2,312
112
118
240
10,244
1
353
1,127
1,419
346
-
6
20,747
531
59,036
2,282
433
3,299
-
-
12,703
5
1
-
1,737
1,140
137
118
239
-
-
353
-
1,522
-
184
5
19,553
1,535
26,504
847
478
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
31.1 COMPENSATION OF KEY MANAGERIAL PERSONNEL
The compensation of director and other member of Key Managerial Personnel during the year was as follows:
Short-term benefits
Post employment benefits
i
ii
iii Other long-term benefits
iv
v
Share based payments
Termination benefits
Total
2018-19
(` in crore)
2017-18
94
3
-
2
-
99
91
2
-
2
-
95
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
2018-19 2017-18
Partners and their Participating Interest (PI)
Country
1
2
3
4
5
6
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% 66.67% BP Exploration (Alpha) Limited - 33.33%
60% Niko (NECO) Limited - 10% ;
60%
BP Exploration (Alpha) Limited - 30%
GS - OSN - 2000/1
CB-ONN-2003/1 *
90%
-
90% Hardy Exploration and Production (India) Inc. - 10%
70% BP Exploration (Alpha) Limited - 30%
* Assigned entire PI and Operatorship to Sun Petro. Government approval received. PSC amendment under process.
32.2 QUANTITIES OF COMPANY’S INTEREST (ON GROSS BASIS) IN PROVED RESERVES AND PROVED DEVELOPED RESERVES:
India
India
India
India
India
India
Particulars
Oil:
Opening balance
Revision of estimates
Production
Closing balance
Particulars
Gas:
Opening balance
Revision of estimates
Production
Closing balance
# 1 cubic meter (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl
Proved Reserves in India
(Million MT#)
Proved Developed Reserves in
India (Million MT#)
2018-19
2017-18
2018-19
2017-18
3.39
(0.18)
(0.19)
3.02
3.71
(0.04)
(0.28)
3.39
0.26
0.03
(0.19)
0.10
0.58
(0.04)
(0.28)
0.26
Proved Reserves in India
(Million M3 #)
Proved Developed Reserves in
India (Million M3#)
2018-19
2017-18
2018-19
2017-18
56,479
194
(1,434)
55,239
60,951
(2,563)
(1,909)
56,479
11,201
194
(1,434)
9,961
14,297
(1,187)
(1,909)
11,201
323
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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 The 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 KGDWN-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 communicated the same to
GOI for resolution of disputes. Pending decision of the
arbitration, the demand from the GOI of $ 148 million
(` 1,024 crore) being the Company’s share [total demand
$ 247 million (` 1,707 crore)] 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
Production Sharing Contract (“PSC”). The Company
has invoked the dispute resolution mechanism
in the PSC and issued a Notice of Arbitration
to the Government on 11th November, 2016.
The international arbitration panel has issued an
award in favour of the Company, BP Exploration
(Alpha) Limited “BP” & Niko (NECO) Limited “Niko”
(Consortium) rejecting completely the claims of
the Government of India against the Consortium
in respect of migrated gas, by a majority of 2 to 1
with two eminent international jurists deciding in
favour. All the contentions of the Consortium have
been upheld by the majority with a finding that the
Consortium was entitled to produce all gas from its
contract area. All claims made by the Government
of India in respect of migrated gas have been
rejected and the consortium is not liable to pay any
amount to the Government of India. During the
year, Government of India has filed appeal in
Delhi High Court.
(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
324
(c)
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)
(Refer Note 4) as at 31st March 2019 is disclosed
under Other Non-Current Assets. Revenue has been
recognised at the GoI notified prices in respect
of gas quantities sold from D1D3 field from
1st November 2014.
In December 2010, the Company and BG Exploration
and Production India Limited (together, the
’Claimants‘) referred a number of disputes,
differences and claims arising under two Production
Sharing Contracts entered into in 1994 among
the Claimants, Oil and Natural Gas Corporation
Limited (ONGC) and the Government (the ’PSCs‘)
to arbitration. The disputes relate to, among other
matters, 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.
Claimants have challenged certain parts of the FPA
before the English Court. English Court had remitted
Claimants’ (Shell-RIL) case, that there was agreement
between GOI and Contractor at Management
Committee level that certain costs will be fully
recoverable, to the Tribunal for reconsideration
by 2 October 2018. Tribunal has delivered its Final
Partial Award on 1 October 2018 and has provided its
unanimous final partial award which is favourable to
the Claimants. During the year, Government of India
has filed an appeal before the English Courts against
the Tribunal’s award.
(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.
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
(e) Due to Niko’s failure to pay the cash calls issued by the Company as Operator of KG D6 Block pursuant to the terms of the
Joint Operating Agreement (“JOA”), the Company and BP issued a Notice of Withdrawal to Niko in terms of the JOA requiring
Niko to withdraw from the KG D6 PSC and JOA. Thereafter, Niko has initiated arbitration proceedings against the Company
and BP on 19 December 2018 and the arbitration tribunal has been constituted and proceedings are yet to commence.
Pending completion of assignment of PI of NIKO (6.67%) to the Company, net payments made on behalf of Niko (i.e.
6.67%) since the date of default notice is classified as Receivable in the books of accounts.
(f) 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 - 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
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)
Guarantees to Banks and Financial Institutions against credit facilities extended
to third parties and other Guarantees
-
(iii)
In respect of Others
(ii) Performance Guarantees
- In respect of Others
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
(II) COMMITMENTS
(A)
Estimated amount of contracts remaining to be executed
on capital account and not provided for:
(i)
(ii)
Uncalled liability on shares and other investments partly paid
In respect of Joint Ventures
In respect of Others
(B)
(C) Other Commitments
(i) Other Commitments - Investments
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
-
2
2
-
-
-
-
(63)
2
(62)
44
14
58
56
7
(1)
62
12
14
35
2018-19
(` in crore)
2017-18
1,252
1,391
90,927
1,801
1,254
7,345
3,599
1,486
2,350
464
1,104
862
50,628
1,689
20
3,670
2,986
2,535
3,000
476
325
*
The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
(III) The Income -Tax Assessments of the Company have been completed up to Assessment Year 2016-17. The total outstanding
demand upto AY 2016-17 is ` 28.08 crore as on date. 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.
(IV) 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 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.
34. CAPITAL MANAGEMENT
The Company adheres to a Disciplined Capital Management framework, the pillars of which are as follows:
a)
Maintain diversity of sources of financing and spreading the maturity across tenure buckets in order to minimise liquidity risk.
b)
c)
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 macroeconomic 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, 2019
(` in crore)
As at
31st March, 2018
1,61,720
1,12,155*
49,565
4,05,322
0.12
1,16,881
67,566
49,315
3,14,647
0.16
*
Cash and Marketable Securities include cash and cash equivalents of ` 3,768 crore, current investments of ` 59,556 crore and other marketable securities of ` 48,831
crore including investments in Jio Digital Fibre Private Limited and Reliance Jio Infratel Private Limited.
326
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
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, 2019
As at 31st March, 2018
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)
57,178
12,110
3,768
36,682
16,471
32,747
803
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,660
-
16,359
803
11,728
-
4,127
10,460
2,731
21,232
2,752
40,003
1,104
-
-
-
-
-
34,461
-
1,17,500
37,611
2,098
77,791
24,586
22,120
1,61,720
88,241
21,117
2,024
9
-
-
-
-
-
-
-
-
2,024
9
-
-
-
-
-
1,16,881
88,675
26,793
1,327
84
-
-
-
-
-
-
-
-
-
-
5,542
1,104
2,453
-
-
-
1,327
84
-
-
-
-
-
-
-
13
-
-
-
-
-
*
Exclude Group Company investments ` 1,24,111 crore (Previous Year ` 1,56,506 crore) measured at cost (Refer Note 2.1).
Reconciliation of fair value measurement of the investment categorised at level 3:
Particulars
Opening Balance
Addition during the year
Sale/Reduction during the year
Total Gain/(Loss)
Closing Balance
Line item in which gain/loss recognised
As at 31st March, 2019
As at 31st March, 2018
(` in crore)
At FVTPL
-
11,481
248
494
11,728
Other Income - ` 246
crore realised; ` 248
crore unrealised
At FVTOCI
13
621
-
77,157
77,791
Other Comprehensive
Income - Items that
will not be reclassi-
fied to Profit or Loss
At FVTPL
-
-
-
-
-
At FVTOCI
10
13
10
-
13
The financial instruments are categorised 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 recognised and subsequently re-measured at fair value as described below:
a)
b)
The fair value of investment in quoted Equity Shares, Bonds, Government Securities, Treasury Bills, Certificate of Deposits 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.
327
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
c)
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.
d)
The fair value of over-the-counter Foreign Currency Option contracts is determined using the Black Scholes valuation model.
e)
f)
Commodity derivative contracts are valued using available information in markets and quotations from exchange, brokers and
price index developers.
The fair value for level 3 instruments is valued using inputs based on information about market participants assumptions and
other data that are available.
g)
The fair value of the remaining financial instruments is determined using discounted cash flow analysis.
h)
All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.
B. FINANCIAL RISK MANAGEMENT
The company’s activities expose it to variety of financial risks: market risk, credit risk, interest rate risk and liquidity risk.
The Company endeavors to use derivative instruments to manage the volatility of financial markets and minimise the adverse
impact on its financial performance. All such activities are undertaken within an approved Risk Management Policy framework.
i) Market Risk
a)
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, 2019
USD
79,540
76,814
(9,257)
EUR
9,387
1,570
(166)
JPY
2,401
-
(3)
As at 31st March, 2018
USD
69,558
72,590
(5,520)
EUR
9,757
1,858
(92)
JPY
1,722
56
-
(17,865)
775
(3,987)
1,26,020
(10,504)
-
-
287
(2,375)
-
-
23
(27,519)
876
(3,855)
1,06,130
(11,285)
-
-
238
(1,695)
-
-
83
Sensitivity analysis of 1% change in exchange rate at the end of reporting period net of hedges *:
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
Foreign Currency Sensitivity
As at 31st March, 2019
USD
EUR
JPY
As at 31st March, 2018
USD
EUR
JPY
(` in crore)
(753)
94
(659)
753
(94)
659
6
(9)
(3)
(6)
9
3
-
-
-
-
-
-
(728)
334
(394)
728
(334)
394
11
(14)
(3)
(11)
14
3
-
(1)
(1)
-
1
1
*
Include natural hedges arising from foreign currency denominated earnings, for which hedge accounting has not been implemented.
328
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
b)
Interest Rate Risk
The Company is also exposed to interest rate risk, changes in interest rates will affect future cash flows or the fair values
of its financial instruments, principally debt. The Company issues debt in a variety of currencies based on market
opportunities and it uses derivatives to hedge interest rate exposures. 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
Receive Fix
-
-
Pay Fix
Currency Swaps
Bond Future-Short
Receive Fix
Pay Fix
*
Include ` 722 crore (Previous Year ` 384 crore) as Prepaid Finance Charges.
# Include ` 192 crore (Previous Year ` 425 crore) as Commercial Paper Discount.
Sensitivity analysis of 1% change in Interest rate :
(` in crore)
As at
31st March, 2019
As at
31st March, 2018
57,988
65,357
39,289
1,62,634
1,729
1,066
5,850
7,015
775
184
52,583
49,443
15,664
1,17,690
2,607
5,632
12,675
4,590
876
-
(` in crore)
Particulars
Impact on Equity
Impact on P&L
Total Impact
ii) Commodity Price Risk
Interest rate Sensitivity
As at 31st March, 2019
As at 31st March, 2018
Up Move
(197)
(318)
(515)
Down Move
197
318
515
Up Move
(307)
(192)
(499)
Down Move
307
192
499
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 price 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. The Company ensures that sales of products are made to customers with appropriate
creditworthiness. Investment and other market exposures are managed against counterparty exposure limits.
Credit information is regularly shared between businesses and finance function, with a framework in place to quickly
identify and respond to cases of credit deterioration.
329
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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 a range of short-dated, secure and liquid instruments including short-term bank deposits, money
market funds, reverse repos and similar instruments. The portfolio of these investments is diversified to avoid concentration
risk in any one instrument or counterparty.
Particulars ^
Borrowings
Non-Current *
Current #
Total
Derivative Liabilities
Forwards
Options
Currency Swaps
Interest Rate Swaps
Total
Maturity Profile as at 31st March, 2019
Below
3 Months
3-6
Months
6-12
Months
(` in crore)
1-3
Years
3-5
Years
Above
5 Years
Total
574
39,286
39,860
758
53
-
1
812
1,531
3
1,534
505
-
-
1
506
2,583
-
2,583
266
-
-
6
272
50,381
-
50,381
27,329
-
27,329
40,947
-
40,947
1,23,345
39,289
1,62,634
-
-
252
53
305
1
-
-
137
138
-
-
-
-
-
1,530
53
252
198
2,033
^ Does not include Trade Payables (Current) amounting to ` 88,241 crore
*
Include ` 722 crore as Prepaid Finance charges
# Include ` 192 crore as Commercial Paper discount
Particulars ^
Borrowings
Non-Current *
Current #
Total
Derivative Liabilities
Forwards
Options
Currency Swaps
Interest Rate Swaps
Total
Maturity Profile as at 31st March, 2018
Below
3 Months
6-12
Months
3-6
Months
(` in crore)
1-3
Years
3-5
Years
Above
5 Years
Total
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
^ Does not include Trade Payables (Current) amounting to ` 88,675 crore
*
Include ` 384 crore as Prepaid Finance charges
# Include ` 425 crore as Commercial Paper discount
330
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
C. RECLASSIFICATION
The Company has reclassified certain non-derivative financial assets on 1st day of July 2018 from fair value through
profit and loss (FVTPL) to financial assets at fair value through other comprehensive income (FVTOCI) on account of its
business model change.
Cost and Fair value of reclassified assets as on reporting date is ` 18,722 crore and ` 20,059 crore respectively. Effective interest
rate is 7.54% per annum. Interest revenue recognised during the period ` 1,060 crore
Change in fair value gain/(loss) of ` 277 crore that would have been recognised in profit and loss during the reporting period if
the financial assets had not been reclassified.
Refer Note 2 and 6.
D. 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
As at 31st March, 2019
Foreign Currency Risk
Foreign Currency Risk
Component - Forwards
Commodity Price Risk
Derivative Contracts
As at 31st March, 2018
Foreign Currency Risk
Foreign Currency Risk
Component - Forwards
Commodity Price Risk
Derivative Contracts
Hedged Items
Particulars
Nominal
Value
Quantity
(Kbbl)
Carrying Amount
Assets
Liabilities
Changes
in Fair Value
Hedge
Maturity
(` in crore)
Line Item in
Balance Sheet
480
-
-
37
(37)
39,048
3,57,970
612
393
132
April 2019 to
December 2019
Other Financial
Liabilities
April 2019 to
December 2021
Other Financial
Assets / Liabilities
-
-
-
-
-
-
20,675
2,35,175
29
593
(758)
April 2018 to
December 2020
Other Financial
Assets / Liabilities
Carrying Amount
Assets Liabilities
Changes
in Fair Value
(` in crore)
Line Item in Balance Sheet
As at 31st March, 2019
Foreign Currency Risk
Import Firm Commitments
Commodity Price Risk
Firm Commitments for purchase of feedstock
and freight
Firm Commitments for sale of products
Inventories
37
131
-
3,324
-
198
414
-
37
20
(414)
262
Other Current Assets
Other Current Assets / Liabilities
Other Current Assets
Inventories
331
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Particulars
As at 31st March, 2018
Foreign Currency Risk
Export Firm Commitments
Commodity Price Risk
Firm Commitments for purchase of feedstock
and freight
Firm Commitments for sale of products
Inventories
B. Cash Flow Hedge
Hedging Instruments
Carrying Amount
Assets Liabilities
Changes
in Fair Value
(` in crore)
Line Item in Balance Sheet
-
55
325
3,431
-
29
-
-
-
208
337
213
Other Current Assets / Liabilities
Other Current Assets
Inventories
Particulars
As at 31st March, 2019
Foreign Currency Risk
Foreign Currency Risk
Component - Trade Payable
As at 31st March, 2018
Foreign Currency Risk
Foreign Currency
Risk Component - Borrowings
Hedged Items
Particulars
As at 31st March, 2019
Foreign Currency Risk
Highly Probable Exports
As at 31st March, 2018
Foreign Currency Risk
Highly Probable Exports
C. Movement in Cash Flow Hedge
Sr.
No.
Particulars
Nominal
Value
Carrying Amount
Assets
Liabilities
Changes in
Fair Value
Hedge
Maturity
(` in crore)
Line Item in
Balance Sheet
20,759
-
-
-
20,747
12
April 2019 to
December 2019
Trade Payable
-
-
-
Nominal
Value
Changes in Fair Value
20,759
-
(12)
-
(` in crore)
Hedge
Reserve
Line Item in Balance Sheet
Other Equity
12
-
2018-19
2017-18
(` in crore)
Line Item in Balance Sheet / Statement
of Profit and Loss
1
2
3
4
5
At the beginning of the year
Gain/ (loss) recognised in other comprehensive income
during the year
Hedge ineffectiveness recognised in profit or loss
Amount reclassified to Profit and Loss during the year
At the end of the year
-
(1,743)
-
1,755
12
1,736
347 Items that will be reclassified to
Profit & Loss
-
(2,083) Value of Sale
- Other Comprehensive Income
36. As per Ind AS 108- “Operating Segment”, segment information has been provided under the Notes to Consolidated
Financial Statements.
332
NOTES to the Standalone Financial Statements for the year ended 31st March, 2019Reliance Industries Limited | Integrated Annual Report 2018–19Standalone
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, 2019
Sr.
No.
Particulars
1
2
3
4
5
6
7
Reliance Global Energy Services Limited
Reliance Holding USA, Inc.
Reliance Industries (Middle East) DMCC
Reliance Jio Infocomm Limited
Reliance Jio Infratel Private Limited
Reliance Sibur Elastomers Private Limited
RIL USA, Inc.
All the above Corporate Guarantees have been given for business purpose.
38.
DETAILS OF RESEARCH AND DEVELOPMENT EXPENDITURE
Sr.
No.
Particulars
Capital
Revenue
a)
b)
Total
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
6
20,747
1,391
44,251
5,500
2,282
605
2018-19
1,286
1,091
2,377
6
19,553
1,368
23,575
-
2,151
570
(` in crore)
2017-18
1,026
798
1,824
39.
EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have recommended dividend of ` 6.5 per fully paid up equity share of ` 10/- each, aggregating ` 4,641
crore, including ` 789 crore dividend distribution tax for the financial year 2018-19, which is based on relevant share capital as
on 31st March, 2019. 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 18, 2019.
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)
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
Chairman & Managing Director
Executive Directors
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Nita M. Ambani
Non-Executive, Non-Independent Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Mumbai
Date: April 18, 2019
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Independent Directors
333
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
CONSOLIDATED FINANCIAL STATEMENTS
335 Independent Auditors’ Report on Financial Statements
346 Balance Sheet
347 Statement of Profit and Loss
348 Statement of Changes in Equity
350 Cash Flow Statement
352 Notes to the Financial Statements
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF RELIANCE INDUSTRIES LIMITED
REPORT ON THE AUDIT OF THE CONSOLIDATED
FINANCIAL STATEMENTS
OPINION
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, 2019, the consolidated Statement
of Profit and Loss including other comprehensive income,
the consolidated Cash Flow Statement and the consolidated
statement of Changes in Equity for the year then ended, and
notes to the Consolidated Financial Statements, including a
summary of significant accounting policies and other explanatory
information (hereinafter referred to as “the Consolidated
Financial Statements”).
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 Companies Act, 2013,
as amended (“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, 2019,
their consolidated profit including other comprehensive income,
their consolidated cash flows and the consolidated statement of
changes in equity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the Consolidated Financial Statements
in accordance with the Standards on Auditing (SAs), as specified
under section 143(10) of the Act. Our responsibilities under those
Standards are further described in the ‘Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements’ section of our
report. We are independent of the Group in accordance with the
‘Code of Ethics’ issued by the Institute of Chartered Accountants
of India together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of
the Act and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and
the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Consolidated Financial Statements.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
Consolidated Financial Statements for the financial year ended
March 31, 2019. These matters were addressed in the context of
our audit of the Consolidated Financial Statements as a whole, and
in forming our opinion thereon, and we do not provide a separate
opinion on these matters. For each matter below, our description of
how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key
audit matters to be communicated in our report. We have fulfilled
the responsibilities described in the Auditor’s responsibilities for
the audit of the Consolidated Financial Statements section of our
report, including in relation to these matters. Accordingly, our
audit included the performance of procedures designed to respond
to our assessment of the risks of material misstatement of the
Consolidated Financial Statements. The results of audit procedures
performed by us and by other auditors of components not audited
by us, as reported by them in their audit reports furnished to us
by the management, including those procedures performed to
address the matters below, provide the basis for our audit opinion
on the accompanying Consolidated Financial Statements.
335
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. INDEPENDENT AUDITORS’ REPORT
Key audit matters
How our audit addressed the key audit matter
A. Capitalisation of property, plant and equipment, intangible assets and related depreciation and amortization
The Holding Company has identified capitalisation of property, plant
and equipment as a key audit matter. As a part of Gasification project,
the Holding Company has incurred additional capital expenditure, for
modification of power plant equipments i.e. Gas Turbines, Auxiliary
Boilers, HRSGs, Process Furnaces, etc. to make them compatible to
multiple feedstock, including those received from petcoke gasifier.
Currently all units of the gasification complex, its associated utilities and
offsites have been started and the complex is under stabilization.
The testing phase of the project is under progress as at March 31, 2019
as it has not achieved the quality and efficiency parameters. Accordingly,
significant level of judgement is involved to ensure that capitalisation
of Property, Plant and Equipment meet the recognition criterias of
Ind AS 16 - Property, Plant and Equipment, specifically in relation to
determination of trial run period and costs associated with trial runs for
it to be ready for intended use.
As a result, the aforesaid matter was determined to be a key audit matter.
The auditors of Reliance Jio Infocomm Limited (‘RJIL’), a subsidiary of
the Holding Company, have reported a key audit matter on capitalisation
of property plant and equipment / intangible assets and amortization
/ depreciation of spectrum costs and related tangible assets as it is a
material item on the balance sheet of the subsidiary in value terms.
Property, plant and equipment and intangible assets of the subsidiary as
at March 31, 2019 is ` 134,000 crore. While the subsidiary has capitalised
the wireless telecommunication project, it continues to augment
capacity therein and continues to invest in setting up the wireline
telecommunication project. Items of Property, plant and equipment and
Intangibles are capitalised when they are ready for use as intended by
the management. Further, spectrum costs and the related tangible assets
are amortised / depreciated to appropriately reflect the expected pattern
of consumption of expected future economic benefits from continued
use of the said assets (Refer Note B.3 (e) of the consolidated financial
statements).
Determination of timing of capitalisation as well as rate of amortization
/ depreciation in order to ensure compliance with the stipulation of
the applicable Accounting Standards involve estimates, significant use
of technology and significant judgment. Accordingly, valuation and
completeness are key assertions related to capitalisation of Property,
plant and equipment and Intangible assets while accuracy is the key
assertion in respect of depreciation / amortization charge.
Our audit procedures included and were not limited to the following
•
•
•
Assessing the nature of the costs incurred to substantially modify
the existing power plants to test whether such costs are incurred
specifically for trial runs and meet the recognition criteria as set out in
para 16 to 22 of Ind AS 16.
Evaluating the assessment provided by third party vendors involved
in the construction and testing process to determine whether
capitalisation ceased when the asset is in the location and condition
necessary for it to be capable of operating in the manner intended by
the management.
In respect of the key audit matter reported by the auditors of RJIL,
we performed inquiry of the audit procedures performed by them to
address the key audit matter. As reported by the subsidiary auditor,
the following procedures have been performed by them:-
i.
ii.
iii.
iv.
Testing the design, implementation and operating effectiveness
of controls in respect of review of capital work in progress,
particularly in respect of timing of the capitalisation with source
documentation.
Testing controls over determination of expected economic
benefits from the use of relevant assets and monitoring actual
consumption thereof to true-up the expected pattern of
consumption during an accounting period.
Testing including substantial involvement of internal telecom
and information technology specialists to validate the expected
pattern of consumption of the economic benefits emanating
from the use of the relevant assets as well as testing the relevant
application systems used in monitoring of actual consumption of
the expected economic benefits.
Substantive testing procedures including, testing necessary
authorisations for capitalisation of items of PPE and Intangible
assets, testing supporting documentation for consumption
of capital goods inventory, comparison of actual pattern of
consumption of benefits for current year with the budget
and testing the mathematical accuracy of computation of
amortization / depreciation charge for the year.
•
Obtained and read the financial statements of RJIL to identify whether
disclosure for capitalisation of property, plant and equipment,
intangible assets including spectrum and related amortization/
depreciation has been appropriately disclosed in the consolidated
financial statements of the Group.
336
ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
Key audit matters
How our audit addressed the key audit matter
B. Changes in useful life and residual value of plant and machinery
As at March 31, 2019 the Holding Company had a gross block of ` 228,340
crore in plant and machinery which constitutes 52.1% of the property,
plant and equipment.
In the current year, the Holding Company has revised the useful life and
residual value of the plant and machinery used in the refining segment.
Assessment of useful lives and residual values of plant machinery in
an integrated and complex plants involves management judgment,
consideration of historical experiences, anticipated technological
changes, etc. (Refer Note 1.7 of the consolidated financial statements).
Accordingly, it has been determined as a key audit matter.
Our audit procedures included and were not limited to the following
•
•
•
•
Evaluating the reasonableness of the assumptions considered by the
management in estimation of useful life and residual values.
Examining the useful economic lives and residual value assigned with
reference to the Holding Company’ historical experience, technical
evaluation by third party and our understanding of the future
utilisation of assets by the Holding Company.
Assessing whether the impact on account of the change has been
appropriately recognized in the financial statements.
Review of the disclosures made in the financial statements in this
regard.
C. Estimation of oil reserves and decommissioning liabilities
Refer to Note 30.2 on proved reserves and production both on product
and geographical basis and Note C (A) on Estimation of Oil and Gas
Reserves, Note C (C) on depreciation, amortization and impairment
charges and Note B.3 (k) of Provisions.
Our procedures have focused on management’s estimation process
in the determination of oil and gas reserves and decommissioning
liabilities. Our work included and were not limited to, the following
procedures:
The determination of the Holding Company’s oil and natural gas reserves
requires significant judgments and estimates to be applied. 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 impacts the determination of the Holding
Company’s estimates of oil and natural gas reserves. The Holding
Company bases its proved reserves estimates considering reasonable
certainty with rigorous technical and commercial assessments based on
conventional industry practice and regulatory requirements.
Estimates of oil and gas reserves are used to calculate depletion charges
for the Holding Company’s oil and gas assets. The impact of changes
in estimated proved reserves is dealt with prospectively by amortising
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’s carrying values reported in the
financial statements.
•
•
•
•
•
Further, the recognition and measurement of decommissioning
provisions involves use of estimates and assumptions relating to 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.
Accordingly, the same is considered as a key audit matter.
The auditors of Reliance Holding USA Inc. (‘RHUSA’), subsidiary of the
Holding Company have also reported a key audit matter on the aforesaid
topic.
Understand the Holding Company’s process and controls associated
with the oil and gas reserves estimation process.
Evaluating the objectivity, independence and competence of the
Internal specialists involved in the oil and gas reserves estimation
process.
Test that the updated oil and gas reserve estimates were included
appropriately in the Holding Company’s consideration of impairment,
accounting for amortization/depletion and disclosures of proved
reserves and proved developed reserves in the financial statements.
Testing of assumption used in the determining the decommissioning
provisions. Also compared these assumptions with past year and
enquired for reasons for any variations.
In respect of the key audit matter reported to us by the auditors of
RHUSA, we performed inquiry of the audit procedures performed by
them to address the key audit matter.
As reported to us by the subsidiary auditor, they have performed
procedures in relation to the approach used; test of controls
performed with regard to data input into the system for calculation of
oil and gas reserves; audit report issued by external experts appointed
by the subsidiary relating to the audit of the key data and assumptions
used by the management for estimating the oil and gas reserve and
the future net income as at the year end; competence and objectivity
of the external experts; calculation of the depletion charge and
future net income and reasonableness of the discount rate used by
the subsidiary for calculating the future net income for impairment
calculation.
•
With respect to RHUSA, obtained and read its financial statements to
identify whether the disclosures on estimation of oil reserves have
been included in the consolidated financial statements of the Group.
337
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
INDEPENDENT AUDITORS’ REPORT
Key audit matters
D. Litigation matters (Oil and Gas)
The Holding Company has certain significant open legal proceedings
under arbitration for various complex matters with the Government
of India and other parties, continuing from earlier years, which are as
under:
a)
b)
c)
Disallowance of certain costs under the production sharing
contract, relating to Block KG-DWN-98/3 and consequent deposit
of differential revenue on gas sales from D1D3 field to the gas pool
account maintained by Gail (India) Limited (Note 30.3 and 30.4 (b)).
Claim against the Holding Company in respect of gas said to have
migrated from neighboring blocks (KGD6) (Note 30.4 (a)).
Claims relating to limits of cost recovery, profit sharing and audit
and accounting provisions of the public sector corporations etc.,
arising under two production sharing contracts entered into in 1994
(Note 30.4 (c)).
d)
Suit for specific performance of a contract for supply of natural gas
before the Hon’ble Bombay High Court (Note 30.4 (d)).
Due to complexity involved in these litigation matters, management’s
judgement regarding recognition and measurement of provisions for
these legal proceedings is inherently uncertain and might change over
time as the outcomes of the legal cases are determined. Accordingly, it
has been considered as a key audit matter.
E.
IT systems and controls over financial reporting
We identified IT systems and controls over financial reporting as a key
audit matter for the Holding Company because its financial accounting
and reporting systems are fundamentally reliant on IT systems and
IT controls to process significant transaction volumes, specifically
with respect to revenue and raw material consumption. Automated
accounting procedures and IT environment controls, which include IT
governance, IT general controls over program development and changes,
access to programs and data and IT operations, IT application controls
and interfaces between IT applications are required to be designed and
to operate effectively to ensure accurate financial reporting.
Impairment of Goodwill
F.
The Group’s balance sheet includes ` 11,997 crore of goodwill,
representing 1% of total Group assets. In accordance with Ind AS,
goodwill is allocated to Cash Generating Units (CGUs) which are tested
annually for impairment using discounted cash-flow approach of each
CGU’s recoverable value compared to the carrying value of the assets.
A deficit between the recoverable value and the CGU’s net assets would
result in impairment.
The impairment test includes sensitivity testing of key assumptions,
including revenue growth, operating margin and discount rate.
The annual impairment testing is considered a significant accounting
judgement and estimate and a key audit matter because the
assumptions on which the tests are based are highly judgmental and are
affected by future market and economic conditions which are inherently
uncertain.
How our audit addressed the key audit matter
Our audit procedures included and were not limited to the following:
•
•
•
•
•
Assessing management’s position through discussions with the in-
house legal expert and external legal opinions obtained by the Holding
Company (where considered necessary) on both the probability of
success in the aforesaid cases, and the magnitude of any potential
loss.
Discussion with the management on the development in these
litigations during the year ended March 31, 2019.
Roll out of enquiry letters to the Holding Company’s legal counsel
(internal/external) and study the responses received from them. Also
assessed that accounting/disclosure made by the Holding Company
are in accordance with the assessment of legal counsel.
Review of the disclosures made in the financial statements in this
regard.
Obtained representation letter from the management on the
assessment of these matters.
Our procedures included and were not limited to the following:
•
•
•
•
Assessing the complexity of the IT environment by engaging IT
specialists and through discussion with the head of IT.
Assessing the design and evaluation of the operating effectiveness of
IT general controls over program development and changes, access to
programs and data and IT operations by engaging IT specialists.
Assessing the design and evaluation of the operating effectiveness
of IT application controls in the key processes impacting financial
reporting of the Holding Company by engaging IT specialists.
Assessing the operating effectiveness of controls relating to data
transmission through the different IT systems to the financial reporting
systems by engaging IT specialists.
With respect to goodwill relating to material subsidiaries, our audit
procedures included and were not limited to the following:
•
•
•
•
•
Obtained and read the financial statements of the material
subsidiaries.
Assessing the appropriateness of the methodology applied in
determining the CGUs to which goodwill is allocated.
Assessing the assumptions around the key drivers of the cash flow
forecasts including discount rates, expected growth rates and terminal
growth rates used, including engaging valuation specialists in certain
cases.
Assessing the recoverable value headroom by performing sensitivity
testing of key assumptions used.
Discussed potential changes in key drivers as compared to previous
year / actual performance with management in order to evaluate
whether the inputs and assumptions used in the cash flow forecasts
were reasonable.
338
ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Key audit matters
G. Revenue Recognition
The accounting policies of the Group for revenue recognition are set out
in Note B 3 (p) to the Consolidated Financial Statements.
The auditors of Reliance Jio Infocomm Limited (‘RJIL’), subsidiary of the
Holding Company, have reported revenue recognition as a key audit
matter due to the high volume of the transactions, high degree of IT
systems involvement and considering that accounting for certain tariff
schemes involve exercise of judgments and estimates, thereby affecting
occurrence, cut-off and accuracy assertions in respect of revenue
recognition.
Reliance Retail Ventures Limited (‘RRVL’), a subsidiary of the Holding
Company, trades in various consumption baskets on a principal basis
and recognizes full value of consideration on transfer of control of traded
goods to the customers which most of the time coincides with collection
of cash or cash equivalent. The auditors of subsidiary has have reported
revenue recognition as a key audit matter due to the high volume of
the transactions and reconciliation of mode of payments with revenue
recognised.
H.
Inventory
The auditors of Reliance Retail Ventures Limited (‘RRVL’), a subsidiary
of the Holding Company have reported existence of inventory as a key
audit matter due to involvement of high risk, basis the nature of the
retail industry wherein value per unit is relatively insignificant but high
volumes are involved which are dispersed across different point of sales
and warehouses.
Refer Note B.3 (i) to the consolidated financial statements of the Group.
How our audit addressed the key audit matter
Our audit procedures included and were not limited to the following:
•
•
Obtained and read the financial statements of RJIL and RRVL to
identify whether the revenue recognition policies are included in the
consolidated financial statement of the Group.
In respect of the key audit matter reported by the auditors of RJIL,
we performed inquiry of the audit procedures performed by them to
address the key audit matter. As reported by the subsidiary auditor,
the following procedures have been performed by them:-
i.
ii.
iii.
iv.
involvement of IT specialists and testing of the IT environment
inter-alia for access controls and change management controls
over the subsidiary company’s billing and other relevant support
systems.
evaluation and testing of the design and operating effectiveness
of the relevant business process controls, inter-alia controls
over the capture, measurement and authorization of revenue
transactions and involvement of IT specialists for testing the
automated controls therein.
evaluation of substantive testing involved, testing collections,
customer ratings for new products and tariffs introduced in
the year, testing the reconciliation between revenue per the
billing system and the financial records and testing supporting
documentation for manual journal entries posted in revenue to
ensure veracity thereof.
validation of the judgements and estimates exercised by the
management regarding the application of revenue recognition
accounting standard with respect to certain tariff schemes,
particularly in view of adoption of Ind AS 115.
•
In respect of the key audit matter reported to us by the auditors of
RRVL, we performed inquiry of the audit procedure performed by them
to address the key audit matter. As reported to us by the subsidiary
auditor, the following procedure have been performed by them:-
i.
Evaluation of the design, testing of the implementation of
internal controls and review on the operating effectiveness of
the controls relating to reconciliation of consideration with
store sales by selection of samples from different stores and
dates throughout the period of audit and reperformance of the
reconciliation between store sales and the mode of payment
collection report.
Our audit procedures included and were not limited to the following:
•
In respect of the key audit matter reported to us by the auditors
of RRVL, we performed inquiry of the audit procedures performed
by them to address the key audit matter. As reported to us by the
subsidiary auditor, the following procedures have been performed by
them:-
i. Evaluation of the design and testing of the implementation of
internal controls relating to physical inventory counts on a test
basis;
ii. Performance of test of controls over verification of documentary
evidences of controls including the calculation of shrinkages.
iii. Performance of test of details through sample selection of stores as
part of the inventory verification program, including verification of
inventory from floor to documentary evidence and vice versa and
verification of shrinkage.
339
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
INDEPENDENT AUDITORS’ REPORT
Key audit matters
I. Transfer of the fiber undertakings
How our audit addressed the key audit matter
Pursuant to a Composite Scheme of Arrangement between Reliance
Jio Infocomm Ltd (RJIL), Jio Digital Fibre Private Limited (JDFPL)
and Reliance Jio Infratel Private Limited (RJIPL) (the Scheme), RJIL
has demerged its optic fiber cable undertaking to JDFPL upon the
Scheme becoming effective on 31 March 2019. As per the Scheme,
RJIL transferred the Undertaking to JDFPL at book value and adjusted
the carrying amount of net assets in Reserves. Further, JDFPL applied
purchase method of accounting in accordance with Ind AS 103 as
mentioned in the Scheme and recorded assets and liabilities of the
Undertaking at their respective fair values and issued Equity Shares of
` 3 Crore (Fair Value ` 497 crore) and Optionally Convertible Preference
Shares with surplus rights (OCPS) of ` 544 crore (Fair Value ` 77,701/-
Crore) to the Company, being the shareholders of RJIL.
Pursuant to receipt of these Equity Shares and OCPS, the Holding
Company in its standalone financial statements (SFS) has allocated its
cost of investments in RJIL into RJIL and JDFPL and elected to value its
investment in OCPS at Fair value through Other Comprehensive Income
(FVTOCI).
Subsequently, the Holding Company sold its controlling equity stake
in JDFPL to Digital FIbre Infrastructure Trust resulting into a gain of `
246 crore recognized in the consolidated statement of profit & loss.
The management has determined that, the Holding Company has no
control or significant influence over JDFPL post the controlling stake sale.
Further the remaining Equity investment in JDFPL is measured at FVTPL
and OCPS is measured at FVTOCI in the consolidated financial statements
(Refer Note 2.2 of the consolidated financial statements).
The auditors of RJIL have also reported a key audit matter in respect
of the accounting treatment applied for the Scheme in its financial
statements.
The above is considered as a key audit matter as the same has been
reported as a significant transaction that occurred during the current
year which involves exercise of judgment and interpretation of the
relevant Indian Accounting Standards and applicable tax and other
statutes / regulations.
Our audit procedures included and were not limited to the following:
•
•
•
•
•
•
Obtained and read the composite scheme of arrangement for
demerger of the optic fiber cable undertaking.
Obtained the memo prepared by the Holding Company in consultation
with external experts (including related assumptions and accounting
policy choice) on the accounting treatment to be applied in the
financial statements.
Evaluating whether the accounting treatment of the said transaction is
in line with the applicable Indian Accounting Standards.
Performing substantive testing procedures including involvement of
valuation specialists for testing of the valuation reports provided by
the management for appropriateness of assumptions involved and
testing of the computation.
Assessing whether the accounting entries recorded in the books is
in line with the accounting treatment assessed above, including the
arithmetical accuracy of the same.
In respect of the key audit matter reported by the auditors of RJIL,
we performed inquiry of the audit procedures performed by them to
address the key audit matter. As reported by the subsidiary auditor,
the following procedures have been performed by them:-
•
•
Evaluation and testing of the internal controls over the
management’s assessment of the accounting treatment of the said
transaction in terms of the applicable Indian Accounting Standards
and applicable tax and other statutes/regulations, identification of
assets and liabilities related to each of the two undertakings.
Substantive testing procedures including involvement of tax
specialists to validate the management position on tax implications
of the transaction and testing of tax computation for appropriate
application of tax laws, involvement of valuation specialists for
testing of the valuation reports provided by the management
for appropriateness of assumptions involved and testing of the
computation, accounting of the transactions and the disclosures
for compliance with the requirements of applicable accounting
standards.
J.
Impairment of assets of subsidiaries of Reliance Industrial Investments and Holding Limited
The auditors of Reliance Industrial Investments and Holdings Limited,
(‘RIIHL’), subsidiary of the Holding Company have reported a key audit
matter on impairment of investment and loans given to subsidiaries
as the recoverability assessment involves significant management
judgement and estimates (Refer Note B.3 (j) of the consolidated financial
statements). Though these investments and loans are eliminated at the
consolidated level, the assets of the RIIHL subsidiaries are included on a
line by line basis in the consolidated financial statements. Accordingly,
the impairment of these assets is considered to be a key audit matter.
Our audit procedures included and were not limited to the following:
•
•
Obtained and read the financial statements of RIIHL and its
subsidiaries to identify whether any impairment has been recorded in
the current year.
In respect of the key audit matter reported to us by the auditors
of RIIHL, we performed inquiry of the audit procedures performed
by them to address the key audit matter. As reported to us by the
subsidiary auditor, the following procedures have been performed by
them for material subsidiaries: -
i.
ii.
iii.
Assessment of the net worth of RIIHL subsidiaries/associates on
the basis of latest available financial statements.
Assessment of the methodologies applied to ascertain the fair
value or as the case may be, value in use of the assets of the
subsidiaries / associates, where the net worth was negative.
Assessment of the accuracy and reasonableness of the input data
and assumptions used to determine the fair value of ‘subsidiaries’
assets, cash flow estimates including sensitivity analysis of key
assumptions used.
340
ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITOR’S REPORT THEREON
The Holding Company’s Board of Directors is responsible for
the other information. The other information comprises the
information included in the Annual report, but does not include
the Consolidated Financial Statements and our auditor’s
report thereon.
Our opinion on the Consolidated Financial Statements does not
cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Consolidated Financial
Statements, our responsibility is to read the other information and,
in doing so, consider whether such other information is materially
inconsistent with the Consolidated Financial Statements or our
knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to
report in this regard.
RESPONSIBILITIES OF MANAGEMENT FOR THE
CONSOLIDATED FINANCIAL STATEMENTS
The Holding Company’s Board of Directors is responsible for the
preparation and presentation of these Consolidated Financial
Statements in terms of the requirements of the Act that give a true
and fair view of the consolidated financial position, consolidated
financial performance including other comprehensive income,
consolidated cash flows and consolidated statement of changes in
equity of the Group including its associates and joint ventures in
accordance with the 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. 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; 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 Directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the
respective Board of Directors of the companies included in the
Group and of its associates and joint ventures are responsible
for assessing the ability of the Group and of its associates and
joint ventures to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends
to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Those respective Board of Directors of the companies included
in the Group and of its associates and joint ventures are also
responsible for overseeing the financial reporting process of the
Group and of its associates and joint ventures.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE
CONSOLIDATED FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about
whether the Consolidated Financial Statements as a whole
are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on
the basis of these Consolidated Financial Statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the
audit. We also:
•
•
•
•
Identify and assess the risks of material misstatement of the
Consolidated Financial Statements, whether due to fraud or
error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether
the Holding Company has adequate internal financial
controls system in place and the operating effectiveness
of such controls.
Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant
doubt on the ability of the Group and its associates and joint
ventures to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in
the Consolidated Financial Statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our
341
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. INDEPENDENT AUDITORS’ REPORT
auditor’s report. However, future events or conditions may
cause the Group and its associates and joint ventures to cease
to continue as a going concern.
March 31, 2019 and related disclosures in respect of an
unincorporated joint operation which is based on statements
from the operators and certified by the management.
Evaluate the overall presentation, structure and content of the
Consolidated Financial Statements, including the disclosures,
and whether the Consolidated Financial Statements represent
the underlying transactions and events in a manner that
achieves fair presentation.
(b) (1)
•
•
Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities
within the Group and its associates and joint ventures of
which we are the independent auditors and whose financial
information we have audited, to express an opinion on the
Consolidated Financial Statements. We are responsible for
the direction, supervision and performance of the audit
of the financial statements of such entities included in
the consolidated financial statements of which we are the
independent auditors. For the other entities included in the
consolidated financial statements, which have been audited
by other auditors, such other auditors remain responsible
for the direction, supervision and performance of the audits
carried out by them. We remain solely responsible for
our audit opinion.
We communicate with those charged with governance of
the Holding Company and such other entities included in
the Consolidated Financial Statements of which we are the
independent auditors regarding, among other matters, the planned
scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the Consolidated Financial Statements
for the financial year ended March 31, 2019 and are therefore
the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our
report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of
such communication.
OTHER MATTER
(a)
The Consolidated Ind AS financial statements include the
Holding Company’s proportionate share in an unincorporated
joint operation relating to total assets of ` 55 crore as at
March 31, 2019, total expenditure of ` 494 crore, the elements
making up the Cash Flow Statement for the year ended
342
(2)
(3)
The Consolidated Ind AS financial statements includes
16 subsidiaries which reflect total assets of ` 1,59,078
crore as at March 31, 2019, total revenues of ` 1,13,108
crore and net cash inflow of ` 220 crore for the year then
ended and the financial statements of an associate which
reflect Group’s share of net profit of ` 4 crore for the year
ended on March 31, 2019, 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 254 subsidiaries
whose Ind AS financial statements include total assets of
` 3,49,858 crore as at March 31, 2019, and total revenues
of ` 1,76,610 crore and net cash inflow of ` 1,991 crore
for the year ended on that date and financial statements
and other financial information of 125 associates and
joint ventures which reflects Group’s share of net profit of
` 17 crore for the year ended March 31, 2019. These Ind
AS financial statement and other financial information
have been audited by other auditors, which 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.
The Consolidated Ind AS financial statements include
unaudited financial statements and other unaudited
financial information in respect of 53 subsidiaries, whose
financial statements reflect total assets of ` 16 crore as
at March 31, 2019, total revenues of ` 3 crore and net
cash inflow of ` 4 crore for the year then ended and the
financial statements of 21 associates and joint ventures
which reflects Group’s share of net profit of ` 91 crore
for the year ended March 31, 2019. These unaudited
financial statements and other unaudited financial
information have been furnished to us by the
management. Our opinion, in so far as it relates 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 such unaudited financial
statement and other unaudited financial information.
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.
ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
(g)
(h)
In our opinion and based on the consideration of reports
of other statutory auditors of the subsidiaries, associates
and joint ventures incorporated in India, the managerial
remuneration for the year ended March 31, 2019 has been
paid / provided by the Holding Company, its subsidiaries,
associates and joint ventures incorporated in India to their
directors in accordance with the provisions of section 197 read
with Schedule V to the Act;
With respect to the other matters to be included in the
Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended, in our opinion
and to the best of our information and according to the
explanations given to us 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
matter’ paragraph:
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 in
its Consolidated Financial Statements – Refer Note 31 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, 2019 except for an
amount of ` 1.52 crore which are held in abeyance due to
pending legal cases.
For D T S & Associates
Chartered Accountants
(Registration No.142412W)
T P Ostwal
Partner
Membership No. 030848
Mumbai
Date: April 18, 2019
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
Vikas Kumar Pansari
Partner
Membership No. 093649
Our opinion above on the Consolidated Financial Statements, and
our report on Other Legal and Regulatory Requirements below, is
not modified in respect of the above matters with respect to our
reliance on the work done and the reports of the other auditors and
the financial statements and other financial information certified
by the Management.
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 noted in the ‘Other
Matter’ paragraph we report, to the extent applicable, that:
(a)
(b)
(c)
(d)
(e)
We / the other auditors whose report we have relied
upon, have sought and obtained all the information and
explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit of the aforesaid
Consolidated Financial Statements;
In our opinion, proper books of account as required by law
relating to preparation of the aforesaid consolidation of
the 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, the 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;
In our opinion, the aforesaid Consolidated 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 the written representations received from the
directors of the Holding Company as on March 31, 2019 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, none of the directors of the Group’s companies,
its associates and joint ventures incorporated in India is
disqualified as on March 31, 2019 from being appointed as a
director in terms of Section 164 (2) of the Act;
(f)
With respect to the adequacy and the operating effectiveness
of the internal financial controls over financial reporting with
reference to these Consolidated Financial Statements of the
Holding Company and its subsidiary companies, associate
companies and joint ventures incorporated in India, refer to
our separate Report in “Annexure 2” to this report;
343
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
INDEPENDENT AUDITORS’ REPORT
Annexure 1
To the Independent Auditor’s Report of even date 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, 2019, we have audited the internal
financial controls over financial reporting of Reliance Industries
Limited (hereinafter referred to as the “Holding Company”)
and 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 with reference to these consolidated
financial statements 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, both, issued by Institute of Chartered
Accountants of India, and deemed to be prescribed under section
143(10) of the Act, to the extent applicable to an audit of internal
financial controls. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting with reference
to these consolidated financial statements 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 with reference to these consolidated
financial statements and their operating effectiveness. Our audit
of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over
financial reporting with reference to these consolidated financial
statements, 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 with reference to
these consolidated financial statements.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER
FINANCIAL REPORTING WITH REFERENCE TO THESE
CONSOLIDATED FINANCIAL STATEMENTS
A company’s internal financial control over financial reporting
with reference to these consolidated financial statements 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 with reference to these
consolidated financial statements 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.
344
ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 INHERENT LIMITATIONS OF INTERNAL FINANCIAL
CONTROLS OVER FINANCIAL REPORTING WITH
REFERENCE TO THESE CONSOLIDATED FINANCIAL
STATEMENTS
Because of the inherent limitations of internal financial controls
over financial reporting with reference to these consolidated
financial statements, 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 with reference to these
consolidated financial statements to future periods are subject to
the risk that the internal financial control over financial reporting
with reference to these consolidated financial statements
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, adequate internal
financial controls system over financial reporting with reference
to these consolidated financial statements and such internal
financial controls over financial reporting with reference to these
consolidated financial statements were operating effectively as
at March 31, 2019, 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 with reference to these consolidated financial
statements of the Holding Company, in so far as it relates to
separate financial statements of 217 subsidiaries, 56 associates
and 23 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)
T P Ostwal
Partner
Membership No. 030848
Mumbai
Date: April 18, 2019
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
Vikas Kumar Pansari
Partner
Membership No. 093649
345
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. BALANCE SHEET
As at 31st March, 2019
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
Assets Held for Sale
Total Assets
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital
Other Equity
Non-Controlling Interest
LIABILITIES
Non-Current Liabilities
Financial Liabilities
Borrowings
Other Financial Liabilities
Deferred Payment Liabilities
Provisions
Deferred Tax Liabilities (Net)
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
Liabilities directly associated with Assets Held for Sale
Total Liabilities
Total Equity and Liabilities
Significant Accounting Policies
See accompanying Notes to the Financial Statements
Notes
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
1
1
1
1
2
3
4
5
6
7
8
9
10
11
39
13
14
15
16
17
4
18
19
20
21
39
1 to 42
3,02,115
1,50,178
11,997
84,262
29,285
1,64,549
6,813
4,776
17,676
7,71,651
67,561
70,939
30,089
7,512
545
12,638
36,804
2,26,088
4,667
10,02,406
5,926
3,81,186
8,280
2,07,506
10,020
18,839
2,856
49,923
548
2,89,692
64,436
1,08,309
87,051
52,901
1,326
3,14,023
3,299
6,07,014
10,02,406
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
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)
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
Chairman & Managing Director
Executive Directors
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Nita M. Ambani
Non-Executive, Non-Independent Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Mumbai
Date: April 18, 2019
346
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Independent Directors
ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
STATEMENT OF PROFIT AND LOSS
For the year ended 31st March, 2019
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 / (Loss) for the Year [Net of Tax]
Total Comprehensive Income for the Year
NET PROFIT ATTRIBUTABLE TO:
a) Owners of the Company
b) Non Controlling Interest
OTHER COMPREHENSIVE INCOME ATTRIBUTABLE TO:
a) Owners of the Company
b) Non Controlling Interest
Total Comprehensive Income attributable to:
a) Owners of the Company
b) Non Controlling Interest
EARNINGS PER EQUITY SHARE OF FACE VALUE OF ` 10 EACH
Basic (in `)
Diluted (in `)
Significant Accounting Policies
See accompanying Notes to the Financial Statements
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
*
Includes exceptional item of ` Nil (Previous Year ` 1,087 crore)
Notes
22
23
24
25
26
1
27
12
12
23.1
23.2
28
28
1 to 42
2018-19
5,85,540
37,269
6,22,809
41,789
5,81,020
8,635
5,89,655
2,75,237
1,23,930
(4,680)
13,885
12,488
16,495
20,934
76,242
5,34,531
55,124
103
55,227
11,683
3,707
39,837
77,470
(16,705)
(2,177)
177
58,765
98,602
39,588
249
58,773
(8)
98,361
241
66.82
66.80
(` in crore)
2017-18
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
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)
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
Chairman & Managing Director
Executive Directors
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Nita M. Ambani
Non-Executive, Non-Independent Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Mumbai
Date: April 18, 2019
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Independent Directors
347
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
STATEMENT OF CHANGES IN EQUITY
For the year ended 31st March, 2019
A. EQUITY SHARE CAPITAL
Balance as at
1st April, 2017
2,959
Change during
the year 2017-18
2,963
Balance as at
31st March, 2018
Change during
the year 2018-19
5,922
4
(` in crore)
Balance as at
31st March, 2019
5,926
B. OTHER EQUITY
Balance as at
1st April,
2018
Total
Comprehensive
Income for the
Year
Dividend
Tax on
Dividend
Transfer
to/(from)
Retained
Earnings
Others
On
Employee
Stock
Options
(` in crore)
Balance as at
31st March,
2019
As at 31st March, 2019
Share Application Money Pending Allotment
15
-
-
-
-
-
(13)
2
RESERVES AND SURPLUS
Capital Reserve
Capital Redemption Reserve
Debenture Redemption Reserve *
Share Based Payments Reserve
Statutory Reserve
Securities Premium
General Reserve
Retained Earnings
Other Comprehensive Income #
291
14
5,265
12
469
40,969
2,25,016
11,840
3,693
-
-
-
-
-
-
39,588
58,773
-
-
-
-
-
-
(3,554)
-
-
-
-
-
-
(728)
-
-
Total
2,87,584
98,361
(3,554)
(728)
-
4,147
-
15
-
30,000
(34,162)
-
-
-
-
-
-
63
-
(654)
-
-
-
(5)
-
132
-
-
-
291
14
9,412
7
484
41,164
2,55,016
12,330
62,466
(591)
114
3,81,186
*
The Debenture Redemption Reserve has not been created for a cumulative amount of ` 2,956 crore (Previous Year ` 2,789 crore) in terms of Section 71(4) of the Companies
Act, 2013 for Reliance Jio Infocomm Limited.
# Includes net movement in Foreign Currency Translation Reserve.
348
ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Balance as at
1st April, 2017
Total Comprehen-
sive Income for
the Year
Dividend
Tax on
Dividend
Divest-
ment of
Stake
Transfer
to/ (from)
Retained
Earnings
Others
On
Employee
Stock
Options
Issue of
Bonus
shares
Balance as at
31st March,
2018
(` in crore)
4
-
-
-
-
-
-
11
-
15
As at 31st March, 2018
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 Reserve
Securities Premium
General Reserve
Retained Earnings
870
291
96
1,120
16
10
248
43,624
2,00,004
9,273
-
-
-
-
-
-
-
-
-
36,075
-
-
-
-
-
-
-
-
-
(3,255)
-
-
-
-
-
-
-
-
-
(661)
(543)
-
(36)
-
-
-
-
-
-
(421)
(327)
-
2
4,145
-
(10)
221
-
25,000
(29,031)
-
-
-
-
-
-
-
-
-
131
12
(144)
-
(1)
-
-
-
-
(4)
-
-
126
-
4
-
-
-
(48)
-
-
-
-
(2,912)
-
-
-
291
14
5,265
12
-
469
40,969
2,25,016
11,840
-
3,693
137
(2,960)
2,87,584
Other Comprehensive Income *
5,194
(1,639)
-
-
138
Total
2,60,750
34,436
(3,255)
(661)
(862)
*
Includes net movement in Foreign Currency Translation Reserve.
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)
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
Chairman & Managing Director
Executive Directors
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Nita M. Ambani
Non-Executive, Non-Independent Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Mumbai
Date: April 18, 2019
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Independent Directors
349
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. CASH FLOW STATEMENT
For the year ended 31st March, 2019
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 *
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 Other Intangible Assets
Proceeds from disposal of Property, Plant and Equipment and Other Intangible Assets
Purchase of Other 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
2018-19
55,227
(103)
33
20,934
(1,319)
(20)
(2,607)
(548)
(5,016)
16,495
83,076
(36,499)
(6,724)
18,074
57,927
(12,191)
45,736
(93,626)
849
(11,23,763)
11,18,332
(2,370)
12
1,012
3
545
(99,006)
(` in crore)
2017-18
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)
Includes Exceptional items of ` Nil (Previous Year ` 1,087 crore) from profit on divestment of stake in Gulf Africa Petroleum Corporation (GAPCO).
*
# Amount spent in cash towards Corporate Social Responsibility is ` 904 crore. (Previous Year ` 771 crore).
350
ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 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
Movement in Deposits
Dividend Paid (including Dividend Distribution Tax)
Interest Paid
Net Cash Flow (used in) / from Financing Activities
Net Increase 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 ` 235 crore (Previous Year ` 259 crore).
2018-19
117
113
-
2
80,299
(20,245)
26,402
(870)
(2,292)
(4,282)
(23,338)
55,906
2,636
4,255
621
7,512
(` in crore)
2017-18
125
281
32
15
36,970
(19,813)
2,713
(739)
-
(3,916)
(17,669)
(2,001)
1,168
2,989
98
4,255
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)
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
Chairman & Managing Director
Executive Directors
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Nita M. Ambani
Non-Executive, Non-Independent Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Mumbai
Date: April 18, 2019
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Independent Directors
351
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019
A. CORPORATE INFORMATION
The Consolidated Financial Statements comprise financial
statements of “Reliance Industries Limited” (“the Holding
Company” or “The Company”) and its subsidiaries
(collectively referred to as “the Group”) for the year ended
31st March, 2019.
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 34 - 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.
Certain financial assets and liabilities (including
derivative instruments),
ii. Defined Benefit Plan’s - Plan Assets and
iii. Equity settled Share Based Payments
The Consolidated Financial Statements of the Group have
been prepared to comply with the Indian Accounting
Standards (‘Ind AS’), including the rules notified under the
relevant provisions of the Companies Act, 2013.
The Consolidated Financial Statements comprises of
Reliance Industries Limited and all its subsidiaries,
being the entities that it controls. Control is assessed
in accordance with the requirement of Ind AS 110 -
Consolidated Financial Statements.
With effect from 1st April 2018, Ind AS 115 – “Revenue
from Contracts with Customers” (Ind AS 115) supersedes
Ind AS 18 – “Revenue” and related Appendices. The Group
has adopted Ind AS 115 using the modified retrospective
approach. The application of Ind AS 115 did not have
any material impact on recognition and measurement
principles. However, it results in additional presentation
and disclosure requirements for the Group.
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)
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.
352
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
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).
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 / joint ventures / associates
are not material and there are no material transactions
from 1st January, 2019 to 31st March, 2019 in respect of
subsidiaries / joint ventures / associates having financial
year ended 31st December, 2018.
The Consolidated Financial Statements have been
prepared using uniform accounting policies for like
transactions and other events in similar circumstances.
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.
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.
(l)
Non-Controlling Interest’s share of net assets of
consolidated subsidiaries is identified and presented in
the Consolidated Balance Sheet.
ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
Held primarily for the purpose of trading;
(c) Property, Plant and Equipment
B.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a) Current and Non-Current Classification
The Group presents assets and liabilities in the
Balance Sheet based on Current/ Non-Current
classification.
An asset is treated as Current when it is –
Expected to be realised or intended to be sold or
consumed in normal operating cycle;
-
-
-
-
Expected to be realised within twelve months
after the reporting period, or
Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as Non-Current.
A liability is treated as Current when –
-
-
-
-
It is expected to be settled in normal
operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after
the reporting period, or
There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.
The Group classifies all other liabilities
as Non-Current.
Deferred Tax Assets and Liabilities are classified as
Non-Current Assets and Liabilities
b) Business Combination
Business Combinations are accounted for using
the acquisition method of accounting, except for
common control transaction which are accounted
using the pooling of interest method that is
accounted at carrying values.
The cost of an acquisition is measured at the fair
value of the assets transferred, equity instruments
issued and liabilities assumed at their acquisition
date i.e., the date on which control is acquired.
Contingent consideration to be transferred is
recognised at fair value and included as part of cost of
acquisition. Transaction related costs are expensed in
the period in which the costs are incurred.
For each business combination, the Group elects
whether to measure the non-controlling interests
in the acquiree at fair value or at the proportionate
share of the acquiree’s identifiable net assets.
Goodwill arising on business combination is initially
measured at cost, being the excess of the aggregate
of the consideration transferred and the amount
recognised for non-controlling interests, and any
previous interest held, over the net identifiable
assets acquired and liabilities assumed. After initial
recognition, Goodwill is tested for impairment
annually and measured at cost less any accumulated
impairment losses if any.
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 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.
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.
353
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Particular
Depreciation
Fixed Bed Catalyst (useful
life: 2 years or more)
Over its useful life as
technically assessed
Fixed Bed Catalyst (useful
life: up to 2 years)
100% depreciated in the
year of addition
Premium on Leasehold
Land (range upto 99 years)
Over the period of lease
term
Plant and Machinery (25 to
40 years)
Over its useful life as
technically assessed
The residual values, useful lives and methods of
depreciation of Property, Plant and Equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.
Gains or losses arising from derecognition of a
Property, Plant and Equipment are measured as the
difference between the net disposal proceeds and the
carrying amount of the asset and are recognised in
the Consolidated Statement of Profit and Loss when
the asset is derecognised.
(d) 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 capitalised. 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 lower 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.
(e) 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 for preparing the asset for
its 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.
The Group’s Other Intangible Assets include assets
with finite and indefinite useful life. Assets with
finite useful life are amortised on a straight-line
basis over their expected useful life and assets
with indefinite useful lives are not amortised but
are tested for impairment annually at the cash
generating unit level.
A summary of the amortisation / depletion policies
applied to the Group’s Other Intangible Assets to the
extent of depreciable amount is as follows:
354
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
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.
(f) Research and Development Expenditure
Revenue expenditure pertaining to research
is charged to the Consolidated Statement of
Profit and Loss.
Development costs are capitalised as an intangible
asset if it can be demonstrated that the project is
expected to generate future economic benefits, it is
probable that those future economic benefits will
flow to the entity and the costs of the asset can be
measured reliably, else it is charged to the Statement
of Profit and Loss.
(g) Cash and Cash Equivalents
Cash and Cash Equivalents comprise of cash on hand,
cash at bank, short-term deposits and short-term
highly liquid investments that are readily convertible
to known amounts of cash and which are subject to
an insignificant risk of changes in value.
(h) Finance Costs
Borrowing costs include exchange differences arising
from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest
cost. Borrowing costs that are 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.
(i) Inventories
(j)
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 finished goods, work-in-progress, raw
materials, chemicals, stores and spares, packing
materials, trading and other products are determined
on weighted average basis.
Impairment of Non-Financial Assets — Property,
Plant and Equipment, Goodwill and Other
Intangible Assets
The Group assesses at each reporting date as to
whether there is any indication that any Property,
Plant and Equipment, Goodwill 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.
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
355
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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.
(k) 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 fulfill
decommissioning obligations and are recognised 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 recognised in the
Consolidated Statement of Profit and Loss.
(l) 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 recognises 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 recognised as a liability after deducting
the contribution already paid. If the contribution
already paid exceeds the contribution due for
356
services received before the balance sheet date, then
excess is recognised 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 basic 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
The Group recognises the employee separation cost
when the scheme is announced and the Group is
demonstrably committed to it.
(m) Tax Expenses
The tax expenses 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. 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.
ii. 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 Assets are recognised to the extent
it is probable that taxable profit will be available
against which the deductible temporary
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
differences, and the carry forward of unused tax
losses can be utilised.
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.
(n) 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 25.3.
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.
(o) 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 capitalised 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).
In case of an asset, expense or income where a
non-monetary advance is paid/received, the date
of transaction is the date on which the advance was
initially recognised. If there were multiple payments
or receipts in advance, multiple dates of transactions
are determined for each payment or receipt of
advance consideration.
(p) Revenue Recognition
Revenue from contracts with customers is recognised
when control of the goods or services are transferred
to the customer at an amount that reflects the
consideration entitled in exchange for those goods
or services. The Group is generally the principal as
it typically controls the goods or services before
transferring them to the customer.
Generally, control is transferred upon shipment of
goods to the customer or when the goods is made
available to the customer, provided transfer of title to
the customer occurs and the Group has not retained
any significant risks of ownership or future obligations
with respect to the goods shipped.
Revenue from rendering of services is recognised over
time by measuring the progress towards complete
satisfaction of performance obligations at the
reporting period.
Revenue is measured at the amount of consideration
which the group expects to be entitled to in exchange
for transferring distinct goods or services to a customer
as specified in the contract, excluding amounts
collected on behalf of third parties (for example taxes
and duties collected on behalf of the government).
Consideration is generally due upon satisfaction of
performance obligations and a receivable is recognised
357
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
when it becomes unconditional. Generally, the credit
period varies between 0-60 days from the shipment
or delivery of goods or services as the case may be.
The Group provides volume rebates to certain
customers once the quantity of products purchased
during the period exceeds a threshold specified and
also accrues discounts to certain customers based
on customary business practices which is derived on
the basis of crude price volatility and various market
demand – supply situations. Consideration are
determined based on its most likely amount.
Generally, sales of petroleum products contain
provisional pricing features where revenue is
initially recognised based on provisional price.
Difference between final settlement price and
provisional price is recognised subsequently.
The Group does not adjust short-term advances
received from the customer for the effects of
significant financing component if it is expected at
the contract inception that the promised good or
service will be transferred to the customer within a
period of one year.
Contract Balances
Trade Receivables
A receivable represents the Group’s right to an
amount of consideration that is unconditional.
Contract Liabilities
A contract liability is the obligation to transfer
goods or services to a customer for which the
Group has received consideration (or an amount
of consideration is due) from the customer.
If a customer pays consideration before the Group
transfers goods or services to the customer, a
contract liability is recognised when the payment is
made or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when
the Group performs under the contract.
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.
(q) Financial Instruments
i.
Financial Assets
A.
Initial Recognition and Measurement
All financial assets are initially recognised at
fair value. Transaction costs that are directly
attributable to the acquisition or issue
of financial assets, which are not at Fair
358
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)
b)
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 represent solely payments of
principal and interest on the principal
amount outstanding.
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 represent 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.
Financial assets are reclassified subsequent
to their recognition, if the Group changes
its business model for managing those
financial assets. Changes in business model
are made and applied prospectively from the
reclassification date which is the first day of
immediately next reporting period following
the changes in business model in accordance
with principles laid down under Ind AS 109 –
Financial Instruments.
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
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
the value changes in ‘Other Comprehensive
Income’. However, dividend on such equity
investments are recognised in Statement of
Profit and loss when the company’s right to
receive payment is established.
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 recognised 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 amortised
cost using the effective interest method.
iii.
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 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. At the inception of a hedge
relationship, the Group formally designates and
documents the hedge relationship to which the
Group wishes to apply hedge accounting and
the risk management objective and strategy for
undertaking the hedge. 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.
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
359
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
the derivative is recognised 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 recognised 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 recognised 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 recognised 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 derecognises 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 derecognised 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.
(r) Non-Current Assets Held for Sale
Non-Current Assets are classified as Held for
Sale if their carrying amount will be recovered
principally through a sale transaction rather than
through continuing use and sale is considered
highly probable.
A sale is considered as highly probable when decision
has been made to sell, assets are available for
immediate sale in its present condition, assets are
being actively marketed and sale has been agreed or
is expected to be concluded within 12 months of the
date of classification.
Assets and liabilities classified as Held for Sale are
measured at the lower of their carrying amount
and fair value less cost of sell and are presented
separately in the Consolidated Balance Sheet.
(s) 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 capitalised
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
360
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
gas reserves and all cost pertaining to production
are charged to the Consolidated Statement of
Profit and Loss.
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.
(t)
Company’s Equity Shares held by its
Subsidiaries
The Holding Company has issued equity shares
which are held by its subsidiaries/ trust, before their
becoming subsidiaries of the Company. The share
held by these subsidiaries / trust are treated as
Treasury Shares and are recognised at cost, and
eliminated from Company’s Equity Share Capital in
Consolidated Financial Statements.
(u) Earnings Per Share
Basic Earnings Per Share is calculated by dividing the
net profit after tax by the weighted average number
of equity shares outstanding during the year adjusted
for bonus element in equity share and excluding
treasury shares. Diluted Earnings Per Share adjusts
the figures used in determination of basic earnings
per share to take into account the conversion of all
dilutive potential equity shares. Dilutive potential
equity shares are deemed converted as at the
beginning of the period unless issued at a later date.
C.
CRITICAL ACCOUNTING JUDGEMENTS 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 amortising 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 30.2.
(B) DECOMMISSIONING LIABILITIES
The liability for decommissioning costs are recognised
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 utilisation of assets by other fields, the scope
of abandonment activity and pre-tax rate applied
for discounting.
(C) DEPRECIATION / AMORTISATION AND USEFUL LIFE
OF PROPERTY PLANT AND EQUIPMENT / OTHER
INTANGIBLE ASSETS
Property, Plant and Equipment / Other Intangible Assets
are depreciated / amortised over their estimated useful
life, after taking into account estimated residual value.
Spectrum Cost is amortised over its balance validity
period, based on the expected pattern of consumption of
the expected future economic benefits.
Management reviews the estimated useful life 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 life
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.
361
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
(D) RECOVERABILITY OF TRADE RECEIVABLES
(G) RECOGNITION OF DEFERRED TAX ASSETS AND
LIABILITIES
Deferred tax assets and liabilities are recognised for
deductible temporary differences and unused tax losses
for which there is probability of utilisation against
the future taxable profit. The Group uses judgement
to determine the amount of deferred tax that can be
recognised, based upon the likely timing and the level of
future taxable profits and business developments.
(H) FAIR VALUE MEASUREMENT
For estimates relating to fair value of financial instruments
refer note 33 of financial statements.
D.
STANDARDS ISSUED BUT NOT EFFECTIVE
On March 30,2019, the Ministry of Corporate Affairs (MCA)
has notified Ind AS 116 – Leases and certain amendment to
existing Ind AS. These amendments shall be applicable to the
Group from April 01, 2019.
A)
ISSUE OF IND AS 116 - LEASES
Ind AS 116 will replace the existing leasing standard
i.e. Ind AS 17 and related interpretations. Ind AS 116
introduces a single lessee accounting model and
requires lessee to recognise assets and liabilities for
all leases with non-cancellable period of more than
twelve months except for low value assets. Ind AS 116
substantially carries forward the lessor accounting
requirement in Ind AS 17.
B) AMENDMENT TO EXISTING STANDARD
The MCA has also carried out amendments of the
following accounting standards
i.
Ind AS 101- First time adoption of Indian
Accounting Standards
Ind AS 103 – Business Combinations
Ind AS 109 - Financial Instruments
Ind AS 111 – Joint Arrangements
Ind AS 12 – Income Taxes
Ind AS 19 – Employee Benefits
ii.
iii.
iv.
v.
vi.
vii. Ind AS 23 – Borrowing Costs
viii. Ind AS 28 - Investment in Associates and Joint Ventures
Application of above standards are not expected to have any
significant impact on the Group’s financial statements.
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
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 FINANCIAL AND NON-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 Group’s past history, existing market
conditions as well as forward-looking estimates at the end
of each reporting period.
In case of non-financial assets the Group estimates asset’s
recoverable amount, which is higher of an asset’s or Cash
Generating Units (CGU’s) fair value less costs of disposal
and its value in use.
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.
Goodwill and intangible assets with indefinite lives
have been allocated to the respective CGUs which are
determined at the entity level. During the year ended
March 31, 2019, the Group has determined that there is no
impairment towards these assets.
362
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
1. PROPERTY, PLANT AND EQUIPMENT, OTHER INTANGIBLE ASSETS, CAPITAL WORK-IN-PROGRESS AND INTANGIBLE ASSETS UNDER
Gross Block
Depreciation / Amortisation and Depletion
Net Block
As at
01-04-2018
Additions /
Adjustments ^
Deductions/
Adjustments
As at
31-03-2019
As at
01-04-2018
For the
Year #
Deductions/
Adjustments
As at
31-03-2019
As at
31-03-2019
As at
31-03-2018
(` in crore)
DEVELOPMENT
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
21,137
45,628
22,194
3,24,915
8,340
9,128
1,806
715
5,038
484
4,39,385
268
10
278
4,39,663
4,420
57,732
4,959
66,366
2,331
1,35,808
5,75,471
803
1,964
3,997
53,891
1,948
1,401
826
41
4
59
64,934
21
-
21
64,955
138
407
3,335
1,330
4,230
9,440
74,395
40
12
(47)
60,958
113
410
9
59
4,625
-
21,900
47,580
26,238
3,17,848
10,175
10,119
2,623
697
417
543
66,179 4,38,140
2,033
-
6,247
486
-
1,161
1,04,699 13,298
831
978
189
79
240
81
1,23,375 17,343
3,976
4,147
953
503
550
267
17
-
(27)
3,668
91
392
6
58
468
-
2,502
-
7,435
1,14,329
4,716
4,733
1,136
524
322
348
4,673 1,36,045
19,398
47,580
18,803
2,03,519
5,459
5,386
1,487
173
95
195
3,02,095
19,104
45,628
15,947
2,20,216
4,364
4,981
853
212
4,488
217
3,16,010
-
-
-
289
10
299
66,179 4,38,439
247
10
257
22
-
22
1,23,632 17,365
-
-
-
269
10
279
4,673 1,36,324
20
-
20
3,02,115
21
-
21
3,16,031
-
-
-
(1,666)
828
(838)
4,558
58,139
8,294
69,362
5,733
1,46,086
65,341 5,84,525
2,749
1,131
1,904
47,009
974
53,767
160
1,788
652
3,001
1,324
6,925
1,77,399 24,290
-
-
-
(1,155)
23
(1,132)
2,909
2,919
2,556
51,165
2,275
61,824
3,541 1,98,148
3,56,401
2,24,390
5,320
5,75,471
1,62,767 17,216
2,584
1,77,399
1,649
55,220
5,738
18,197
3,458
84,262
3,86,377
3,98,072
1,50,178
1,671
56,601
3,055
19,357
1,357
82,041
3,98,072
1,66,220
29,285
20,802
$ Includes Office Equipments.
* Other than internally generated.
#
Depreciation / Amortisation and Depletion for the year include depreciation of ` 160 crore (Previous Year ` 289 crore) capitalised during the year and also include ` 3,196
crore on account of entities acquired, mainly Den Networks Limited, Hathway Cable and Datacom Limited and Radisys Corporation, during the year 2018-19. Thus, net
amount of ` 20,934 crore has been considered in the Statement of Profit and Loss.
Additions / adjustments in gross block for the year include ` 8,601 crore on account of entities acquired during the year 2018-19.
^
363
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 1.1
Leasehold Land includes ` 86 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) Cost of shares in Co-operative Societies ` 2,03,700 (Previous Year ` 2,02,700).
ii)
` 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)
Jetties amounting to ` 812 crore (Previous Year ` 812 crore), the ownership of which vests with Gujarat Maritime Board.
ii)
` 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)
` 34,473 crore (Previous Year ` 38,392 crore) on account of Project Development Expenditure.
ii) ` 18,750 crore (Previous Year ` 23,471 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 ` 5,117 crore (net loss) [Previous Year ` 1,244 crore (net loss)] on account of exchange difference
during the year.
1.6 For Assets pledged as security - Refer Note 15.1, 15.2 and 15.3.
1.7 Till year ended 31st March, 2018, the estimated useful life of certain assets of plant and machinery were in range of 15-25 years
with residual value of 5% of original cost. The management, based on internal and external technical evaluation, reassessed the
estimates. Basis the technical evaluation made by the Management, the Company has revised the useful life of those assets in the
range of 25-40 years and residual value to 15% of original cost effective from 1st April, 2018.
The Company has also evaluated certain assets and wherever necessary, has provided for accelerated depreciation in
some of the assets.
364
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
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
GTPL Hathway Limited of ` 10 each
In Equity Shares - Unquoted, Fully paid up
Aeon Learning Private Limited of ` 1 each (Previous Year ` 1,00,000)
Big Tree Entertainment Private Limited of ` 10 each
CCN DEN Network Private Limited of ` 10 each
Clayfin Technologies Private Limited of ` 10 each
DEN ADN Network Private Limited of ` 10 each
Den Satellite Network Private Limited of ` 10 each
Eenadu Television Private Limited of ` 10 each
Gaurav Overseas Private Limited of ` 10 each [` 28,35,517;
(Previous Year ` 28,87,249)]
Genesis Luxury Fashion Private Limited of ` 319.60 each
Gujarat Chemical Port Terminal Company Limited of ` 1 each
Hathway VCN Cablenet Private Limited of ` 10 each
Indian Vaccines Corporation Limited of ` 10 each [ ` 34,48,495]
Jamnagar Utilities & Power Private Limited Class A
shares of ` 1 each [ ` 40,40,000 ; (Previous Year ` 40,40,000)]
(Formerly known as Reliance Utilities and Power Private Limited)
NW18 HSN Holdings PLC of USD 0.2 each
Pan Cable Services Private Limited of ` 10 each
Reliance Europe Limited of Sterling Pound 1 each
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 (Previous Year ` 39,14,826)]
24x7 Learning Private Limited of ` 10 each
In Preference Shares - Unquoted, Fully paid up
Aeon Learning Private Limited - Series B Compulsorily Convertible Preference
Shares (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 B1 of ₹ 10 each
Big Tree Entertainment Private Limited - Compulsorily Convertible
Preference Shares Series C of ` 1,000 each
Big Tree Entertainment Private Limited - Compulsorily Convertible Preference
Shares Series C1 of ₹ 10 each
Big Tree Entertainment Private Limited - Compulsorily Convertible Preference
Shares Series D of ` 10 each
TV18 Home Shopping Network Limited - Compulsory Convertible Preference
Shares of ₹ 100 each
In Preference shares - Unquoted, Partly paid up
NW18 HSN Holdings PLC - Class O Preference Shares of USD 0.2 each, paid up
USD 0.05 each
As at 31st March, 2019
As at 31st March, 2018
Units
Amount
Units
Amount
(` in crore)
68,60,064
4,70,10,528
-
17,04,279
20,40,000
35,93,552
19,38,000
50,295
60,94,190
3,23,000
-
64,29,20,000
12,520
62,63,125
52,00,000
92,62,233
10
11,08,500
-
7,67,196
19,57,413
-
-
1,156
2,31,200
1,807
3,61,400
3,41,857
5,53,285
12,75,367
175
-
175
-
-
-
21
-
-
301
-
269
250
-
1
-
-
-
35
340
23
-
-
1,240
-
-
-
188
391
579
-
-
-
22
4
64
335
-
68,60,064
-
1,00,000
17,04,279
-
35,93,552
-
-
60,94,190
3,23,000
-
82,22,360
329 64,29,20,000
-
62,63,125
52,00,000
-
-
-
92,62,233
-
11,08,500
66,360
7,67,196
19,57,413
6,45,558
2
1,156
2,31,200
-
-
37
-
-
-
-
791
-
-
-
98
-
278
40
416
-
-
1,807
141
3,61,400
-
-
12,75,367
-
-
-
141
-
-
365
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Particulars
As at 31st March, 2019
As at 31st March, 2018
Units
Amount
Units
Amount
(` in crore)
In Debentures - Unquoted, Fully paid up
Ashwani Commercials Private Limited - Zero Coupon Unsecured Optionally Fully
Convertible Debentures of ` 10 each
13,55,90,000
In Share Warrant - Unquoted, Partly paid up
NW18 HSN Holdings PLC - Share Warrant of USD 10 each, paid up
USD 0.01 each
24,18,393
-
24,18,393
136
136
-
-
-
-
-
-
-
-
-
-
-
-
50,00,00,000
3,542
-
1,922
3,542
5,098
2,45,00,000
2,23,22,952
1,22,50,000
1,07,00,000
5,16,95,000
9,12,531
7,000
15,810
13,05,717
25,500
2,55,000
2,42,250
2,49,000
20,400
10,200
1,02,000
51,000
9,63,000
68,850
68,000
15,300
2,29,500
86,25,000
25,05,000
5,33,60,074
1,05,05,000
16,24,00,000
81,42,722
14
29
14
2
14
5
-
-
-
1
4
6
-
-
-
-
-
4
10
-
-
-
-
46
150
8
151
49
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
In Limited Liability Partnership
GenNext Ventures Investment Advisers LLP [ ` 26,72,980;
(Previous Year ` 26,67,227)]
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
INVESTMENT IN JOINT VENTURES
Investment measured at Cost (accounted using Equity method)
In Equity Shares - Unquoted, Fully paid up
Brooks Brothers India Private Limited of ` 10 each
Burberry India Private Limited of ` 10 each
Canali 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
Hathway Bhaskar CCN Multi Entertainment Private Limited of ` 10 each
Hathway Bhawani NDS Network Private Limited of ` 500 each [` 31,19,917]
Hathway Cable MCN Nanded Private Limited of ` 10 each [` 29,72,821]
Hathway CBN Multinet Private Limited of ` 10 each
Hathway CCN Entertainment (India) Private Limited of ` 10 each
Hathway CCN Multinet Private Limited of ` 10 each
Hathway Channel 5 Cable & Datacom Private Limited of ` 10 each
Hathway Dattatray Cable Network Private Limited of ` 10 each
Hathway Digital Saharanpur Cable and Datacom Private Limited of ` 10 each
Hathway Ice Television Private Limited of ` 10 each
Hathway Latur MCN Cable and Datacom Private Limited of ` 10 each
Hathway MCN Private Limited of ` 10 each
Hathway Sai Star Cable & Datacom Private Limited of ` 10 each
Hathway Sonali OM Crystal Cable Private Limited of ` 10 each
Hathway Palampur Cable Network Private Limited of ` 10 each [` 18,83,237]
Hathway Prime Cable and Datacom Private Limited of ` 10 each
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
Jio Payments Bank Limited of ` 10 each
Marks and Spencer Reliance India Private Limited (Class A Shares of ` 10 each)
B.
366
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Particulars
As at 31st March, 2019
As at 31st March, 2018
Units
Amount
Units
Amount
(` in crore)
Marks and Spencer Reliance India Private Limited (Class C Shares of ` 5 each)
Net 9 Online Hathway Private Limited of ` 10 each
Reliance Bally India Private Limited of ` 10 each
Reliance Paul & Shark Fashions Private Limited of ` 10 each
Reliance-Grand Vision India Supply Private Limited of ` 10 each
Reliance-Vision Express Private Limited of ` 10 each
Rutvi Project Managers 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
V&B Lifestyle India 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 Series "I" of ` 100 each
IBN Lokmat News Private Limited - 0.10% Non Cumulative Redeemable Preference
Shares Series "II" of ` 100 each
IBN Lokmat News Private Limited - 0.01% Optionally Convertible Non Cumulative
Redeemable Preference Share Series "II" of ` 100 each
IBN Lokmat News Private Limited - 0.10% Non Cumulative Redeemable Preference
Shares Series "III" of ` 100 each
9,51,16,546
5,000
36,00,000
1,08,50,000
1,35,00,000
9,20,00,000
5,00,000
1,65,62,000
10,63,545
10,821
87,45,000
2,71,49,272
2,20,000
2,49,999
1
20,35,250
In Limited Liability Partnership
Hathway SS Cable & Datacom LLP [` Nil]
B. Total Investments in Joint Ventures
C. OTHER INVESTMENTS
Investment measured at Cost
In Equity Shares - Unquoted, Fully paid up
Sonali Land Private Limited of `10 each [ ` 4,000; (Previous Year ` 4,000)]
Investment measured at Amortised Cost
In Government Securities - Unquoted
6 Years National Savings Certificate (Deposited with Sales Tax Department and
Other Government Authorities) [ ` 45,02,837; (Previous Year ` 29,33,077)]
In Preference Shares - Unquoted, Fully paid up
Den Entertainment Network Private Limited of ` 10 each
In Debentures or Bonds - Unquoted, Fully paid up
Jio Digital Fibre Private Limited - 9% Non-convertible Debentures of ` 10 lakh each
Reliance Jio Infratel Private Limited - 9% Non-convertible Debentures of
` 10 lakh each
Yes Bank Limited - Unsecured Redeemable Non-Convertible,
Upper Tier II Bonds of ` 10,00,000 each
400
-
4,53,420
1,18,360
45,342
11,836
30
3
57,181
191
3
4
5
6
10
1
12
3
5
8
2
757
-
5
-
10
15
-
-
772
-
-
-
-
-
-
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
2,20,000
2,49,999
1
20,35,250
400
25,00,000
-
-
30
144
-
3
5
6
13
-
10
3
7
-
1
530
-
5
-
8
13
-
-
543
-
-
-
-
2
2
-
-
3
3
367
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Particulars
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
Affinity Energy and Health Limited of AU$ 0.1636 each
(Formerly known as Algae. Tech Limited)
Balaji Telefilms Limited of ` 2 each
EIH Limited of ` 2 each
Eros International Plc of GBP 0.30 each
Himachal Futuristic Communications Limited of ` 1 each
KSL and Industries Limited of ` 4 each [ ` 13,75,493; (Previous Year ` 34,29,247)]
Refex Industries Limited of ` 10 each (Previous Year ` 41,52,500)
(Formerly known as Refex Refrigerants Limited)
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)]
Aeon Learning Private Limited of ` 1 each (` 1,00,000)
24x7 Learning Private Limited of ` 10 each
Delhi Stock Exchange Association Limited of ₹ 10 each
Eshwar Land Private Limited of ` 10 each
Future 101 Design Private Limited of ` 10 each
Hathway Patiala Cable 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 ` 0.10 each [` 10,00,000; (Previous Year ` 10,00,000)]
Petronet VK Limited of ` 10 each [ ` 20,000 ; (Previous Year ` 20,000)]
Ushodaya Enterprises Private Limited of ` 100 each
[ ` 27,50,000; (Previous Year ` 27,50,000)]
VAKT Holdings Limited of US$0.001 each
Yatra Online Private Limited of ` 10 each
In Convertible Warrants, Partly paid up
Infibeam Incorporation Limited - Convertible warrant of
` 186.48 on which ` 46.62 paid per warrant
In Preferred Shares - Unquoted, Fully paid up
EdCast Inc. - Series B
KaiOS Technologies Inc (KTI) - Series A
Netradyne Inc. - Series A
Skytran Inc.
368
As at 31st March, 2019
As at 31st March, 2018
Units
Amount
Units
Amount
(` in crore)
5
5
50
50
4,52,88,158
2
4,52,88,158
2,52,00,000
10,59,07,273
31,11,088
4,85,32,764
4,74,308
2,75,000
3,03,704
19,26,397
10,000
1,00,000
6,45,558
8,98,500
400
1,607
71,175
19,04,781
3,01,876
1,00,00,000
19,99,990
27,500
36,267
1,09,348
21,45,002
2,34,302
6,25,000
1,91,34,355
30,11,471
207
2,52,00,000
2,181 10,59,07,273
-
4,85,32,764
4,74,308
2,75,000
197
109
-
1
6
56
2,759
1,09,994
19,26,397
10,000
-
-
8,98,500
400
-
-
19,04,781
3,01,876
1,00,00,000
19,99,990
27,500
-
1,09,348
21,45,002
2,34,302
-
1,50,75,708
-
-
-
-
-
80
12
3
46
-
-
-
-
35
16
192
-
-
5
36
276
23
340
2
2
11
11
6
328
1,685
-
125
-
-
3
62
2,209
-
-
-
-
80
-
-
46
-
-
-
-
-
18
144
10
10
5
-
111
-
116
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 As at 31st March, 2019
As at 31st March, 2018
Units
Amount
Units
Amount
(` in crore)
2
-
7770,24,48,375
77,703
Particulars
In Preference Shares - Unquoted, Fully paid up
Aeon Learning Private Limited - Series B Compulsorily convertible Preference
Shares of ` 1 each (` 1,020)
Jio Digital Fibre Private Limited - 10% Optionally Convertible Preference Shares of
` 10 each
Karexpert Technologies Private Limited - Series A Preference Shares of ` 20 each
Pipeline Infrastructure Private Limited - 0.1% Compulsory Convertible Preference
Shares of ` 10 each
Pipeline Infrastructure Private Limited - 0.1% Redeemable Preference Shares of
` 10 each
Teesta Retail Private Limited - 6% Non-Cumulative Optionally Convertible
Preference Shares of ` 10 each
In Debentures - Unquoted, Fully paid up
VT Media Private Limited - Unsecured Zero Coupon Optionally Redeemable/
Convertible Debentures of ` 1,000 each
22,222
400,00,00,000
5,00,00,000
2,025
2,50,000
Teesta Retail Private Limited - Unsecured Zero Coupon Optionally Fully Convertible
Debentures of ` 10 each
3,00,00,000
In Debentures or Bonds - Quoted, Fully paid up *
In Fixed Maturity Plan - 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 Equity Shares - Unquoted, Partly paid up
In Debentures or Bonds - Quoted, Fully paid up
In Fixed Maturity Plan - Quoted, Fully paid up
In Others
Avendus Absolute Return Fund - Class AB of ` 1,000 each
Faering Capital India Evolving Fund of ` 1,000 each
GenNext Ventures Fund - Class A units of ` 10 each
HDFC India Real Estate Fund of ` 1,000 each
IIFL Special Opportunities Fund Class A 5.1 of ` 10 each
JM Financial Property Fund - I of ` 3,721 each (Previous Year ` 3,876 each)
KKR India Debt Fund I of ` 1,000 each
LICHFL Housing and Infrastructure Fund of ` 100 each
LICHFL Urban Development Fund of ` 10,000 each, ` 3,857 paid up
(Previous Year ` 7,172 paid up)
Include ` 327 crore (Previous Year ` Nil) given as collateral security. (Refer Note 18)
*
# Refer Note 33 C
-
18,28,287
6,08,31,760
88,880
4,95,06,919
50,000
7,39,556
1,16,000
25,000
10
4,000
50
466
82,229
25
30
55
2,098
10,148
44
44
2,516
878
10
2,731
-
-
183
76
1
51
7
51
1
11
-
-
-
-
-
2,025
2,50,000
-
5,00,000
19,11,868
5,97,16,771
88,880
2,49,09,288
50,000
4,81,250
-
25,000
-
-
-
-
-
466
466
25
-
25
2,698
-
66
66
2,217
248
-
1,827
8,859
52
205
77
1
25
9
113
-
19
369
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Particulars
Multiples Private Equity Fund - Scheme 1 of ` 1,00,000 each, ` 40,846 paid up
(Previous Year ` 48,581 paid up)
Multiples Private Equity Fund II LLP of ` 1,000 each
Paragon Partners Growth Fund - I of ` 100 each
Urban Infrastructure Opportunities Fund of ` 29,930 each
(Previous Year ` 49,430 each)
3one4 Capital Fund Scheme II of ` 1,00,000 each, ` 55,000 paid up
(Previous Year ` 25,000 paid up)
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
As at 31st March, 2019
As at 31st March, 2018
(` in crore)
Units
5,000
8,46,056
29,29,919
21,600
2,000
Units
5,000
7,51,956
15,69,603
21,600
2,000
Amount
51
109
44
23
11
619
1,61,855
1,64,549
Amount
48
82
25
54
5
715
19,618
25,259
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
2,694
57,181
97,920
6,754
1,64,549
2,099
3,547
5,747
13,866
25,259
2.2
Pursuant to a Composite Scheme of Arrangement between Reliance Jio Infocomm Limited (RJIL), Jio Digital Fibre Private Limited
(JDFPL) and Reliance Jio Infratel Private Limited (RJIPL) (the Scheme), RJIL has demerged its optic fiber cable undertaking
(‘the Undertaking’) to JDFPL upon the Scheme becoming effective on 31st March, 2019. As per the Scheme, RJIL transferred the
Undertaking to JDFPL at book value and adjusted the carrying amount of net assets in Reserves. Further, JDFPL applied purchase
method of accounting in accordance with Ind AS 103 as mentioned in the Scheme and recorded assets and liabilities of the
Undertaking at their respective fair values and issued Equity Shares of ` 3 crore and Optionally Convertible Preference Shares
with surplus rights (OCPS) of ` 544 crore to the Company being the shareholders of RJIL. Pursuant to receipt of these Equity
Shares and OCPS, the Company in its Standalone Financial Statements (SFS) has allocated its cost of investments in RJIL into
RJIL and JDFPL and elected to value its investment in OCPS at Fair value through Other Comprehensive Income (FVTOCI) and
accordingly fair value gain of ` 77,158 crore on OCPS has been accounted in Other Comprehensive Income in the SFS.
Subsequently, Company sold its controlling equity stake in JDFPL to Digital FIbre Infrastructure Trust resulting into a gain of
` 246 crore recognised in the Consolidated Statement of Profit & Loss. The management has determined that, the Company has
no control or significant influence over JDFPL post the sale of controlling stake. To achieve harmonisation of the accounting
treatment in the SFS and CFS, considering the accounting treatment prescribed in the Scheme as well as the applicable Ind
AS and the views expressed in the external opinions obtained by the Company, the remaining Equity investment in JDFPL is
measured at FVTPL and OCPS is measured at FVTOCI in the Consolidated Financial Statements.
3. LOANS - NON-CURRENT (UNSECURED AND CONSIDERED GOOD)
Deposits with Related Parties (Refer Note 29(IV))
Loans and Advances to Related Parties (Refer Note 29(IV))
Other Loans and Advances *
Total
*
Include primarily fair value of interest free deposits.
370
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
583
-
6,230
6,813
608
42
2,018
2,668
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
4. DEFERRED TAX
COMPONENT OF DEFERRED TAX
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)
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)
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
4,776
49,923
(45,147)
As at
31st March,
2018
(Charge)/Credit
to Statement of
Profit and Loss
(Charge)/Credit
to Other
Comprehensive
Income
Others
(Including
Exchange
Difference)
5,075
29,618
(24,543)
(` in crore)
As at
31st March,
2019
(6,850)
10
35
37
19,148
(7,305)
5,075
29,994
920
(27)
(815)
(3)
(190)
(261)
29,618
(4,503)
(10)
5
(8)
3,819
(201)
(898)
3,792
(523)
(7)
(103)
(6)
133
(477)
2,809
-
-
-
-
-
-
-
-
16,627
-
-
-
-
-
16,627
6
(11,347)
-
7
46
1,195
(655)
599
869
-
-
-
-
-
-
869
-
47
75
24,162
(8,161)
4,776
34,655
17,024
(34)
(918)
(9)
(57)
(738)
49,923
Net Deferred Tax Assets / (Liabilities)
(24,543)
(3,707)
(16,627)
(270)
(45,147)
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
5. OTHER NON-CURRENT ASSETS (UNSECURED AND CONSIDERED GOOD)
Capital Advances
Security Deposits *
Advance Income Tax (Net of Provision) #
Others ^
Total
Include Deposits of ` 465 crore (Previous Year ` 487 crore) given to Related Parties (Refer Note 29(IV)).
*
# Refer Note 12
^ Include ` 295 crore (Previous Year ` 295 crore) deposited in Gas pool account (Refer Note 30.4 (b))
3,858
1,921
3,420
8,477
17,676
1,983
2,617
2,639
1,414
8,653
371
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 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 ` 7,410 crore (Previous Year ` 7,299 crore)
7.
INVESTMENTS - CURRENT
INVESTMENT MEASURED AT AMORTISED COST
In 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 (Previous Year Units 6,98,288)
In Fixed Maturity Plan - Quoted, Fully paid up #
In Mutual Fund - Quoted #
In Mutual Fund - Unquoted #
INVESTMENT MEASURED AT FAIR VALUE THROUGH PROFIT AND LOSS (FVTPL)
In Debentures or Bonds - Quoted, Fully Paid Up ^
In Equity Shares - Quoted, Fully paid up
In Fixed Maturity Plan - Quoted, Fully Paid Up
In Government Securities - Quoted ^
In Mutual Fund - Quoted
In Treasury Bills - Quoted
In Certificate of Deposits - Quoted
In Equity Shares - Unquoted, Fully paid up
In Preference Shares - Unquoted, Fully paid up
In Debentures or Bonds - Unquoted, Fully paid up
In Mutual Fund - Unquoted # **
Total Investments - Current
# Refer Note 33 C
^ Include ` 13,384 crore (Previous Year ` Nil) given as collateral security. (Refer Note No. 18)
** Include ` 21 crore (Previous Year ` Nil) given as collateral security for F&O Trading.
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
372
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
19,993
13,312
15,228
5,124
12,001
1,903
67,561
19,432
12,321
12,788
4,129
10,824
1,343
60,837
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
-
-
-
-
3,358
8
23,909
27,275
7,359
2,216
-
12,835
84
-
373
105
50
11,478
9,164
43,664
70,939
585
585
7
7
-
5
21,744
21,756
5,824
3,334
5,359
-
3
1,943
-
-
-
-
18,799
35,262
57,603
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
-
27,275
43,664
70,939
585
21,756
35,262
57,603
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
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 including Deposits
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
30,089
30,089
17,555
17,555
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
188
7,324
7,512
7,512
89
4,166
4,255
4,255
*
Include Unclaimed Dividend of ` 235 crore (Previous Year ` 259 crore), Fixed Deposits of ` 339 crore (Previous Year ` 213 crore) with maturity of more than 12 months and
Fixed Deposits of ` 3,447 crore (Previous Year ` 1,376 crore) are given as collateral securities.
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 Deposits of ` 17 crore (Previous Year ` 17 crore) given to Related Parties (Refer Note 29(IV)).
^ Include fair value of derivatives.
11. OTHER CURRENT ASSETS (UNSECURED AND CONSIDERED GOOD)
Balance with Customs, Central Excise, GST and State Authorities
Others **
Total
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
212
4,693
7,733
12,638
158
1,884
6,406
8,448
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
21,109
15,695
36,804
22,802
9,959
32,761
** Includes prepaid expenses, deposits and claims receivables. Previous year also includes Intangible Assets Under Development held for sale amounting to ` 4,353 crore.
12. TAXATION
INCOME TAX RECOGNISED IN STATEMENT OF PROFIT AND LOSS
Current Tax
Deferred Tax
Total Income Tax Expenses
Year ended
31st March, 2019
(` in crore)
Year ended
31st March, 2018
11,683
3,707
15,390
10,098
3,248
13,346
373
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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
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
13. SHARE CAPITAL
AUTHORISED SHARE CAPITAL:
14,00,00,00,000
(14,00,00,00,000)
1,00,00,00,000
(1,00,00,00,000)
Equity Shares of ` 10 each
Preference Shares of ` 10 each
ISSUED, SUBSCRIBED AND PAID UP:
5,92,58,68,997
(5,92,18,26,196)
Total
Equity Shares of ` 10 each, fully paid up
374
Year ended
31st March, 2019
(` in crore)
Year ended
31st March, 2018
55,227
34.944%
19,299
(3,191)
4,583
(7,736)
709
(1,973)
(8)
11,683
8,295
(4,588)
3,707
15,390
27.87%
49,426
34.608%
17,105
(2,630)
4,109
(7,599)
196
(1,116)
33
10,098
13,098
(9,850)
3,248
13,346
27.00%
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
2,638
(11,683)
200
12,191
3,346
1,735
(10,098)
1,157
9,844
2,638
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
14,000
1,000
15,000
5,926
5,926
14,000
1,000
15,000
5,922
5,922
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
13.1
13.2
13.3
2,95,98,63,235 Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium Reserve and
(2,95,98,63,235)
Capital Redemption Reserve.
45,04,27,345 Shares allotted on conversion / surrender of Debentures and Bonds, conversion of Term Loans, exercise of
Warrants, against Global Depository Shares (GDS) and re-issue of Forfeited Equity Shares, since inception.
(45,04,27,345)
3,44,000
(3,44,000)
Shares held by Associates
Figures in brackets represent Previous Year figures.
13.4 THE RECONCILIATION OF THE NUMBER OF SHARES OUTSTANDING IS SET OUT BELOW :
Equity Shares at the beginning of the year
Add: Shares issued on exercise of employee stock options
Add: Bonus Shares
Less: Bonus Shares issued against shares held by eligible entity (trust)
Equity Shares at the end of the year
As at
31st March, 2019
As at
31st March, 2018
No. of Shares
No. of Shares
5,92,18,26,196
40,42,801
-
-
5,92,58,68,997
2,95,89,24,277
30,38,684
3,08,03,34,238
12,04,71,003
5,92,18,26,196
13.5 Options granted under ESOS-2006 prior to withdrawal of scheme, continue to be governed by ESOS-2006. 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.
13.6 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.
13.7 Issued, Subscribed and Paid Up Capital excludes 41,28,24,826 (Previous Year 41,28,24,826) equity shares directly or beneficially
held by subsidiaries / trust, which are consolidated in the Financial Statements.
375
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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
Less: Divestment of Stake
Less: Transferred to Retained Earnings
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
STATUTORY RESERVE
As per last Balance Sheet
Add: Transferred from Retained Earnings
SECURITIES PREMIUM
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
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
15
(13)
-
-
-
14
-
14
-
-
5,265
4,147
12
5
-
-
469
15
40,969
63
132
41,164
-
2
-
291
14
9,412
7
484
4
11
870
543
327
96
2
98
48
36
1,120
4,145
16
4
10
10
248
221
43,624
131
126
43,881
2,912
15
-
291
14
5,265
12
-
469
41,164
40,969
376
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 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 / Others
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 ` 6 (Previous Year ` 11)]
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
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
2,00,004
25,000
12
2,55,016
2,25,016
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)
11,840
3,693
2,87,584
12,330
62,466
3,81,186
2,25,016
30,000
-
11,840
39,588
-
-
-
639
15
50,774
15
30,000
4,147
-
3,554
728
3,693
-
58,773
14.1 Share Application Money Pending Allotment represents application money received on account of Employees Stock Option
Scheme.
15. BORROWINGS
SECURED - AT AMORTISED COST
Non-Convertible Debentures
Term Loans - from Banks
Term Loans - from Others
UNSECURED - AT AMORTISED COST
Non-Convertible Debentures
Bonds
Term Loans - from Banks
Term Loans – from Others
Total
As at 31st March, 2019
As at 31st March, 2018
Non-Current
Current
Non-Current
Current
(` in crore)
15,000
4,699
383
20,082
42,500
43,786
99,072
2,066
1,87,424
2,07,506
3,000
654
117
3,771
1,500
555
8,914
823
11,792
15,563
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
377
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
15.1 SECURED NON-CONVERTIBLE DEBENTURES REFERRED ABOVE TO THE EXTENT OF:
a)
b)
c)
d)
` 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.
` 17,500 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.
` Nil (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.
` Nil (Previous year ` 133 crore ) are secured by way of first mortgage / charge on all the properties situated at Hazira
Complex and at Patalganga Complex of the Company
15.2 SECURED TERM LOANS FROM BANKS REFERRED ABOVE TO THE EXTENT OF:
a)
b)
` 5,347 crore (Previous Year ` 6,860 crore) are secured by way of mortgage/ hypothecation of movable, immovable
properties and current assets.
` 6 crore (Previous Year ` 9 crore) are secured by way of hypothecation of vehicles and are repayable over a period of
one to five years.
15.3 SECURED TERM LOANS FROM OTHERS REFERRED ABOVE TO THE EXTENT OF:
a)
` 500 crore (Previous Year ` Nil) are secured by way of mortgage/ hypothecation of movable, immovable properties and
current assets.
15.4 MATURITY PROFILE AND RATE OF INTEREST OF NON-CONVERTIBLE DEBENTURES ARE AS SET OUT BELOW :
a) Secured :
Rate of Interest
7.97%
8.00%
8.10%
8.25%
8.32%
8.69%
8.70%
8.75%
Total
b) Unsecured :
Rate of Interest
6.78%
6.80%
6.95%
7.00%
7.07%
7.17%
8.30%
8.65%
8.70%
8.90%
8.95%
9.05%
9.25%
378
Non-Current
(` in crore)
Current
2025-26
2024-25
2023-24
2022-23
2021-22
2020-21
Total
2019-20
-
-
-
1,000
-
-
-
-
1,000
-
-
-
1,000
-
-
-
-
1,000
-
5,000
-
1,000
-
-
-
-
6,000
1,000
-
-
-
-
-
-
-
1,000
-
-
-
-
2,000
2,000
1,500
-
5,500
Non-Current
-
-
-
-
-
-
-
500
500
1,000
5,000
-
3,000
2,000
2,000
1,500
500
15,000
-
-
3,000
-
-
-
-
-
3,000
(` in crore)
Current
2028-29
2024-25
2022-23
2021-22
2020-21
Total
2019-20
-
-
-
-
-
-
-
3,000
500
-
3,000
3,500
-
10,000
-
-
-
-
-
-
-
-
-
1,000
-
-
2,500
3,500
-
-
-
5,000
-
5,000
-
-
-
-
-
-
-
10,000
-
-
-
-
-
-
7,000
-
-
-
-
-
-
7,000
2,500
2,500
2,500
-
2,500
-
-
-
-
-
2,000
-
-
12,000
2,500
2,500
2,500
5,000
2,500
5,000
7,000
3,000
500
1,000
5,000
3,500
2,500
42,500
-
-
-
-
-
-
-
-
-
1,000
500
-
-
1,500
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
15.5 MATURITY PROFILE AND RATE OF INTEREST OF BONDS ARE AS SET OUT BELOW :
Unsecured :
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%
7.63%
8.25%
9.38%
10.25%
10.50%
Non-Current *
(` in crore)
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
Total
2019-20
-
-
-
-
-
-
-
-
-
-
-
-
-
-
86
-
86
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
67
67
-
-
-
-
-
-
-
5,186
-
-
-
-
-
-
-
-
5,186
-
-
-
-
-
-
-
-
-
-
3,489
-
-
-
-
-
3,489
-
-
-
-
-
-
-
-
1,383
-
-
-
-
-
-
-
1,383
-
-
-
-
5,532
-
-
-
-
-
-
34
-
-
-
-
5,566
-
-
-
-
-
-
-
-
-
-
-
-
235
153
-
-
388
134
132
149
156
-
-
-
-
-
-
-
-
-
-
-
-
571
134
132
149
156
-
6,915
-
-
-
-
-
-
-
-
-
-
7,486
134
132
149
156
-
-
-
-
-
-
-
-
-
-
-
-
571
134
132
149
156
-
-
-
-
-
-
-
-
-
-
-
-
571
134
132
149
156
-
-
-
-
-
10,465
-
-
-
-
-
-
11,036
134
132
149
156
-
-
6,978
-
-
-
-
-
-
-
-
-
7,549
804
792
894
936
5,532
6,915
6,978
5,186
1,383
10,465
3,489
34
235
153
86
67
43,949
134
132
149
156
-
-
-
-
-
-
-
-
-
-
-
-
571
*
Include ` 179 crore (Non-Current ` 163 crore and Current ` 16 crore) as Prepaid Finance Charges.
15.6 MATURITY PROFILE OF SECURED TERM LOANS ARE AS SET OUT BELOW :
Term Loans - from Banks #
Term Loans - from Others ^
# Include ` 51 crore (Non-Current ` 42 crore and Current ` 9 crore) as Prepaid Finance Charges.
^ Include ` 3 crore (Non-Current ` 2 crore and Current ` 1 crore) as Prepaid Finance Charges.
15.7 MATURITY PROFILE OF UNSECURED TERM LOANS ARE AS SET OUT BELOW :
Non-Current
Above
5 years
1,358
-
1-5 years
3,383
385
(` in crore)
Current
Total
4,741
385
1 year
663
118
Term Loans - from Banks **
Term Loans - from Others
Non-Current
Above 5 years
1-5 years
21,834
-
78,374
2,066
Total
1,00,208
2,066
(` in crore)
Current
1 year
9,108
823
** Include ` 1,330 crore (Non-Current ` 1,136 crore and Current ` 194 crore) as Prepaid Finance Charges.
15.8 The Group has satisfied all the covenants prescribed in terms of borrowings.
379
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
16. OTHER FINANCIAL LIABILITIES - NON-CURRENT
Others *
Total
*
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
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
10,020
10,020
8,542
8,542
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
20
2,832
4
2,856
18
2,886
2
2,906
#
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 exists uncertainty on the timing of abandonment of well and related facilities
would depend upon the ultimate life of the field and expected utilisation of assets by other fields.
As at 31st March, 2019
As at 31st March, 2018
(` in crore)
18. BORROWINGS - CURRENT
SECURED - AT AMORTISED COST
Working Capital Loans
From Banks
Foreign Currency Loans
Rupee Loans
From Others
Rupee Loans
UNSECURED - AT AMORTISED COST
Other Loans and Advances
From Banks
Foreign Currency Loans
Rupee Loans
From Others
Commercial Paper ^
181
9,400
11,135
1,423
Loans from Related Parties (Refer Note 29(II))
Total
^
Maximum amount outstanding at any time during the year was ` 72,281 crore (Previous Year ` 39,614 crore).
9,581
6,128
12,558
36,099
70
64,436
294
2,410
2,937
940
2,704
-
3,877
30,784
64
37,429
18.1 a)
Working Capital Loans from Banks of ` 8,885 crore (Previous Year ` 1,991 crore) are secured by Government Securities
(Refer Note 7) and 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)
d)
e)
` 515 crore (Previous Year ` 382 crore) are secured by way of first charge on all the Current Assets.
` 181 crore (Previous Year ` 294 crore) line of credit are secured by guarantee given by the Holding Company.
` Nil (Previous Year ` 37 crore) are secured by way of lien on Fixed Deposits.
Working Capital Loans from Others of ` 6,128 crore (Previous Year ` Nil) are secured by Government Securities and Bonds
(Refer Note 2 and 7).
f)
The Group has satisfied all the covenants prescribed in terms of borrowings.
380
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
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 *
Unclaimed/ Unpaid matured deposits and interest accrued thereon
Other Payables #
Total
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
15,563
1,370
3,452
235
3
66,428
87,051
37,159
870
2,598
259
3
84,262
1,25,151
*
These figures do not include any amounts due and outstanding, to be credited to Investor Education and Protection Fund except ` 2 crore (Previous Year ` 19 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 25.1) **
Provision for Income Tax (Net of Advance Tax)
Other Provisions @
Total
** 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.
22. REVENUE FROM OPERATIONS
DISAGGREGATED REVENUE
Refining
Petrochemicals
Oil and Gas
Organised Retail
Digital Services
Others
Total ^^
^^ Include Income from Services; Net of GST
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
52,901
52,901
43,179
43,179
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
687
74
565
1,326
2018-19
3,06,154
1,39,259
4,384
1,15,257
2,071
13,895
5,81,020
570
1
661
1,232
(` in crore)
2017-18
2,28,301
1,04,839
4,966
61,777
1,594
6,788
4,08,265
Revenue from contract with customers differ from the revenue as per contracted price due to factors such as taxes recovered, volume rebate, discounts, hedge etc.
381
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
23. 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
2018-19
(` in crore)
2017-18
209
4,438
282
87
1,404
1,203
5,016
548
444
2,607
20
8,635
99
2,565
270
18
4,113
47
2,952
1,021
670
4,160
1,146
9,949
Other Income comprises of income from assets measured at Amortised Cost ` 1,772 crore (Previous Year ` 1,050 crore), income from assets measured at Fair Value Through
Profit and Loss ` 2,226 crore (Previous Year ` 3,887 crore), income from assets measured at Fair Value Through Other Comprehensive Income ` 4,192 crore (Previous Year
` 4,342 crore) and Other Non Operating Income ` 445 crore (Previous Year ` 670 crore).
*
Includes Exceptional items of ` NIL (Previous Year ` 1,087 crore) from profit on divestment of stake in Gulf Africa Petroleum Corporation (GAPCO).
23.1 OTHER COMPREHENSIVE INCOME - ITEMS THAT WILL NOT BE RECLASSIFIED TO
PROFIT AND LOSS
Remeasurement of Defined Benefit Plan
Equity Instruments through OCI #
Total
# Refer Note 2.2
23.2 OTHER COMPREHENSIVE INCOME - ITEMS THAT WILL BE RECLASSIFIED TO
PROFIT AND LOSS
Debentures or Bonds
Debt Income Fund
Fixed Maturity Plan
Commodity Hedge
Cash Flow Hedge
Foreign Currency Translation
Total
2018-19
(9)
77,479
77,470
2018-19
(87)
(1,003)
186
70
3
(1,346)
(2,177)
(` in crore)
2017-18
53
442
495
(` in crore)
2017-18
(675)
(1,769)
-
(197)
(1,692)
1,280
(3,053)
382
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
2018-19
(` in crore)
2017-18
23,612
12,321
40,541
35,933
17,149
11,426
28,575
799
453
-
35,861
(4,680)
2018-19
10,854
657
977
12,488
27,323
(8,610)
(` in crore)
2017-18
8,090
591
842
9,523
(` in crore)
2017-18
284
16
163
(` in crore)
24. 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
25. EMPLOYEE BENEFITS EXPENSE
Salaries and Wages
Contribution to Provident and Other Funds
Staff Welfare Expenses
Total
27,229
13,312
23,612
12,321
35,933
131
-
59
25.1 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
2018-19
333
14
173
Gratuity (Funded)
Gratuity (Unfunded)
2018-19
2017-18
2018-19
2017-18
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
1,040
44
108
84
(27)
(88)
1,161
949
60
93
70
(33)
(99)
1,040
37
27
23
5
(3)
(4)
85
28
-
17
2
(7)
(3)
37
383
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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
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
Other Comprehensive Income
V)
Investment Details
Government of India Securities
Public Securities
State Government Securities [` Nil (Previous Year
` 10,98,308)]
Insurance Policies
Others (including Bank Balances) [` Nil (Previous Year
` 9,93,805)]
(` in crore)
Gratuity (Funded)
2018-19
2017-18
1,001
42
40
1
112
(87)
1,109
929
47
74
3
45
(97)
1,001
Gratuity (Funded)
(` in crore)
Gratuity (Unfunded)
As at 31st March
As at 31st March
2019
1,109
1,161
(52)
2018
1,001
1,040
(39)
2019
-
85
(85)
2018
-
37
(37)
(` in crore)
Gratuity (Funded)
Gratuity (Unfunded)
2018-19
2017-18
2018-19
2017-18
108
84
(80)
112
(28)
40
12
93
70
(64)
99
(36)
(10)
(46)
23
5
-
28
(3)
-
(3)
17
2
-
19
(7)
-
(7)
As at 31st March, 2019
As at 31st March, 2018
(` in crore)
% Invested
(` in crore)
% Invested
13
-
-
1,096
-
1.17
0.00
0.00
98.83
0.00
16
1
-
984
-
1.60
0.10
0.01
98.28
0.01
1,109
100.00
1,001
100.00
384
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
VI) Actuarial Assumptions
Mortality Table (IALM)
Discount Rate (per annum)
Expected Rate of Return on Plan Assets (per annum)
Rate of Escalation in Salary (per annum)
Gratuity (Funded)
2018-19
2006-08
(Ultimate)
8%
8%
6%
2017-18
2006-08
(Ultimate)
8%
8%
6%
Gratuity (Unfunded)
2018-19
2006-08
(Ultimate)
8%
8%
6%
2017-18
2006-08
(Ultimate)
8%
-
6%
The estimates of Rate of Escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in the employment market. The 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 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 2018-19.
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
Longevity 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.
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.
25.2 The Company had announced Voluntary Separation Scheme (VSS) for the employees of Patalganga Manufacturing Division in the
previous year. A sum of ` 1 crore had been paid during the previous year and debited to the Statement of Profit and Loss under
the head “Employee Benefits Expense”.
25.3 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)
Number
Financial Year of
Vesting
Range of Exercise
price (`)
Range of Fair value
at Grant Date (`)
i) Details of Employee Stock Options granted upto 31st March, 2015 but not vested as on 1st April, 2015
2006-07
2008-09
2010-11
2011-12
2013-14
2014-15
2015-16
2015-16 & 2016-17
2015-16
2015-16
2015-16 to 2018-19
2015-16 to 2019-20
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
ii) Details of Employee Stock Options granted from 1st April, 2015 to 31st March, 2019
2016-17 to 2019-20
2015-16
2017-18 to 2020-21
2016-17
443.70
548.00
127.30 - 173.20
149.80 - 204.50
11,03,520
26,400
11,520
33,710
1,20,214
90,838
13,86,202
29,934
1,48,908
1,78,842
15,65,044 *
Sub Total
Sub Total
Total
*
Includes options exercised, expired / lapsed upto 31st March, 2019 i.e. 10,66,805. Accordingly balance of outstanding options granted as on 31st March,
2019 is 4,98,239.
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.
385
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
b) Compensation Expenses arising on account of the Share Based Payments
Year ended
31st March, 2019
(` in crore)
Year ended
31st March, 2018
Expenses arising from equity – settled share-based payment transactions
0.64
1.29
c)
Fair Value on the grant date
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 year ended 31st March, 2017 included as mentioned below. Further, no new
stock options were granted during FY 2018-19;
a) Weighted average exercise price `1,096
b) Grant date: 05.10.2016 & 10.10.2016
c) Vesting year: 2017-18 to 2020-21
d) Share Price at grant date: ` 1,089 at 05.10.2016 & ` 1,096 at 10.10.2016
e) Expected price volatility of Company’s share: 25.1% to 26.5%
f) Expected dividend yield: 1.07%
g) 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
Exercised during the year
Expired / Lapsed during the year
Balance at the end of the year
As at 31st March, 2019
As at 31st March, 2018
Number of
share options
Weighted average
exercise price
Number of share
options
Weighted average
exercise price
7,86,812
-
(2,86,573)
(2,000)
4,98,239
380.08
-
403.58
321.00
366.82
5,44,682
5,44,682
(1,73,240)
(1,29,312)
7,86,812
Weighted average of remaining contractual life of the share options outstanding at the end of year is 414 days (Previous Year 288 days)
26.
FINANCE COSTS
Interest Expenses *
Other Borrowing Costs
Applicable loss on foreign currency transactions and translation
Total
*
Interest Expenses are net of Interest Capitalised of ` 11,254 crore (Previous Year ` 10,035 crore).
2018-19
15,247
267
981
16,495
386
379.41
379.41
338.37
430.31
380.08
(` in crore)
2017-18
7,246
51
755
8,052
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
27. 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
2018-19
(` in crore)
2017-18
23,440
103
10,534
28,243
117
13,811
6,819
17,029
1,022
307
1,495
1,240
159
172
7,193
872
5,746
2,083
11,041
4,050
4,190
3,327
2,466
4,123
1,201
1,355
867
707
42
83
982
5,852
14,569
1,511
158
1,280
27
(95)
138
6,396
854
3,284
1,184
4,948
4,170
1,775
2,271
577
1,480
1,003
701
717
435
33
139
816
36,517
2,446
76,242
20,249
3,814
50,512
*
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.
27.1 PAYMENT TO AUDITORS AS :
Particulars
(a) Statutory Audit Fees
(b) Tax Audit Fees
(c) Certification and Consultation Fees
(d) Cost Audit Fees
Total
2018-19
27
2
12
1
42
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.
(` in crore)
2017-18
23
1
8
1
33
387
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
27.2 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 ` 866 crore (Previous Year ` 729 crore).
(b) Expenditure related to Corporate Social Responsibility is ` 904 crore (Previous Year ` 771 crore).
Particulars
Rural Transformation
Health
Education
Sports For Development
Disaster Response
Urban Renewal (Previous Year ` 33,94,505)
Arts, Culture and Heritage
Total
2018-19
(` in crore)
2017-18
156
116
540
59
31
1
1
904
195
148
373
50
4
-
1
771
(c)
Out of note (b) above, ` 341 crore (Previous Year ` 698 crore) is contributed to Reliance Foundation, ` 41 crore (Previous Year
` 38 crore) to Reliance Foundation Youth Sports and ` 476 crore (Previous Year ` 1 crore) to Reliance Foundation Institution
of Education and Research which are related parties.
28. 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
* Dilutive impact of Employee Stock Option Scheme.
2018-19
2017-18
10
66.82
39,588
10
60.94
36,075
5,92,47,99,366
66.80
39,588
5,91,98,12,239
60.89
36,075
5,92,62,12,599
5,92,48,68,713
5,92,47,99,366
14,13,233
5,92,62,12,599
5,91,98,12,239
50,56,474
5,92,48,68,713
388
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 29. RELATED PARTIES DISCLOSURES
(I) LIST OF RELATED PARTIES AND RELATIONSHIPS:
Sr.
No.
Name of the Related Party
Relationship
24 X 7 Learning Private Limited ^
Aeon Learning Private Limited ^
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
Big Tree Sport & Recreational Events Tickets Selling L.L.C ^
1
2
3
4
5
6
7
8
9
10 Bookmyshow Sdn. Bhd. ^
11 Carin Commercials Private Limited
12 CCN DEN Network Private Limited ^
13 Centura Agro Private Limited
14 Chander Commercials Private Limited
15 Clayfin Technologies Private Limited
16 Creative Agrotech Private Limited
17 DEN ABC Cable Network Ambarnath Private Limited ^
18 DEN ADN Network Private Limited ^
19 DEN New Broad Communication Private Limited ^
20 Den Satellite Network Private Limited ^
21 DL GTPL Broadband Private Limited ^
22 DL GTPL Cabnet Private Limited ^
23 Dyulok Technologies Private Limited
24
25
26
27
28
29
30 Gaurav Overseas Private Limited
31 Genesis La Mode Private Limited *
32 Genesis Luxury Fashion Private Limited *
33 GenNext Ventures Investment Advisers LLP
34 GLB Body Care Private Limited *
35 GLB Perfumes and Beauty Private Limited ^
36 GLF Lifestyle Brands Private Limited *
37 GML India Fashion Private Limited *
38 Go2Space Event Management Private Limited ^
39 GTPL Abhilash Communication Private Limited ^
40 GTPL-Ahmedabad Cable Network Private Limited ^
41 GTPL Anjali Cable Network Private Limited ^
42 GTPL Bansidhar Telelink Private Limited ^
43 GTPL Bariya Television Network ^
44 GTPL Bawa Cable ^
45 GTPL Blue Bell Network Private Limited ^
46 GTPL Broadband Private Limited ^
47 GTPL Chaudhary Vision ^
48 GTPL City Channel Private Limited ^
East West Pipeline Limited
Eenadu Television Private Limited
Einsten Commercials Private Limited
Fame Agro Private Limited
Fantain Sports Private Limited
Foodfesta Wellcare Private Limited
Associates
^ Companies were related parties for part of the year.
* Company was an associate upto 06.09.2018 and became a subsidiary from 07.09.2018.
389
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Relationship
Associates
Sr.
No.
Name of the Related Party
49 GTPL Crazy Network ^
50 GTPL Dahod Television Network Private Limited ^
51 GTPL DCPL Private Limited ^
52 GTPL Deesha Cable Net Private Limited ^
53 GTPL Hariom World Vision ^
54 GTPL Hathway Limited ^
55 GTPL Henish Cable Vision ^
56 GTPL Insight Channel Network Private Limited ^
57 GTPL Jay Santoshima Network Private Limited ^
58 GTPL Jaydeep Cable ^
59 GTPL Junagadh Network Private Limited ^
60 GTPL Jyoti Cable ^
61 GTPL Kaizen Infonet Private Limited ^
62 GTPL KCBPL Broad Band Private Limited ^
63 GTPL Khambhat Cable Network ^
64 GTPL Khusboo Video Channel ^
65 GTPL Kolkata Cable & Broadband Pariseva Limited ^
66 GTPL Leo Vision ^
67 GTPL Link Network Private Limited ^
68 GTPL Lucky Video Cable ^
69 GTPL Ma Bhagawati Entertainment Services ^
70 GTPL Media Entertainment ^
71 GTPL Meghana Distributors Private Limited ^
72 GTPL Narmada Cable Services ^
73 GTPL Narmada Cyberzone Private Limited ^
74 GTPL Parshwa Cable Network Private Limited ^
75 GTPL Parth World Vision ^
76 GTPL SK Vision ^
77 GTPL Sai Vision ^
78 GTPL Sai World Channel ^
79 GTPL Sanjiv Cable Vision ^
80 GTPL-Sharda Cable Network Private Limited ^
81 GTPL Shiv Cable ^
82 GTPL Shiv Cable ^
83 GTPL Shiv Cable Network ^
84 GTPL Shiv Cable Vision ^
85 GTPL Shiv Network Private Limited ^
86 GTPL Shivshakti Network Private Limited ^
87 GTPL Shree Shani Cable ^
88 GTPL Shreenathji Communication ^
89 GTPL SK Network Private Limited ^
90 GTPL SMC Network Private Limited ^
91 GTPL Solanki Cable Network Private Limited ^
92 GTPL Sorath Telelink Private Limited ^
93 GTPL Space City Private Limited ^
94 GTPL Surat Telelink Private Limited ^
95 GTPL Swastik Communication ^
96 GTPL Tridev Cable Network ^
97 GTPL TV Tiger Private Limited ^
98 GTPL V&S Cable Private Limited ^
^ Companies were related parties for part of the year.
390
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Sr.
No.
Name of the Related Party
99 GTPL Vidarbha Telelink Private Limited ^
100 GTPL Video Badshah Private Limited ^
101 GTPL Video Vision Private Limited ^
102 GTPL Vision Services Private Limited ^
103 GTPL Vraj Cable ^
104 GTPL VVC Network Private Limited ^
105 GTPL World View Cable ^
106 GTPL World Vision ^
107 GTPL Zigma Vision Private Limited ^
108 Gujarat Chemical Port Terminal Company Limited
109 Hathway VCN Cablenet Private Limited ^
110 Honeywell Properties Private Limited
111 Indian Vaccines Corporation Limited
112 Jaipur Enclave Private Limited
113 Jamnagar Utilities & Power Private Limited
(Formerly known as Reliance Utilities and Power Private Limited)
114 Kaniska Commercials Private Limited
115 KCIPI Trading Company Private Limited
116 M Entertainments Private Limited *
117 Konark IP Dossiers Private Limited ^
118 Marugandha Land Developers Private Limited
119 N.C. Trading Company Private Limited
120 Netravati Commercials Private Limited
121 Nomobo Entertainment Private Limited ^
122 Noveltech Agro Private Limited
123 NW18 HSN Holdings PLC
124 Pan Cable Services Private Limited ^
125 Parinita Commercials Private Limited
126 Pepino Farms Private Limited
127 Prakhar Commercials Private Limited
128 PT Big Tree Entertainment Indonesia
129 Rakshita Commercials Private Limited
130 Reliance Europe Limited
131 Reliance Industrial Infrastructure Limited
132 Rocky Farms Private Limited
133 Shop CJ Network Private Limited
134 Shree Salasar Bricks Private Limited
135 Sikka Ports and Terminals Limited
136 SpaceBound Web Labs Private Limited
137 The Indian Film Combine Private Limited *
138 Townscript USA, Inc.
139 TV18 Home Shopping Network Limited
140 Vaji Communication Private Limited ^
141 Vay Network Services Private Limited
142 Vishnumaya Commercials Private Limited
143 Vizianagar Citi Communications Private Limited ^
^ Companies were related parties for part of the year.
* Company was an associate upto 16.04.2018 and became a subsidiary from 17.04.2018.
Relationship
Associates
391
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Relationship
Joint Ventures
Sr.
No.
Name of the Related Party
144 Brooks Brothers India Private Limited
145 Burberry India Private Limited ^
146 Canali India Private Limited ^
147 D. E. Shaw India Securities Private Limited
148 Diesel Fashion India Reliance Private Limited
149 Football Sports Development Limited
150 Hathway Bhaskar CCN Multi Entertainment Private Limited ^
151 Hathway Bhawani NDS Network Private Limited ^
152 Hathway Cable MCN Nanded Private Limited ^
153 Hathway CBN Multinet Private Limited ^
154 Hathway CCN Entertainment (India) Private Limited ^
155 Hathway CCN Multinet Private Limited ^
156 Hathway Channel 5 Cable & Datacom Private Limited ^
157 Hathway Dattatray Cable Network Private Limited ^
158 Hathway Digital Saharanpur Cable & Datacom Private Limited ^
159 Hathway ICE Television Private Limited ^
160 Hathway Latur MCN Cable & Datacom Private Limited ^
161 Hathway MCN Private Limited ^
162 Hathway Palampur Cable Network Private Limited ^
163 Hathway Prime Cable & Datacom Private Limited ^
164 Hathway Sai Star Cable & Datacom Private Limited ^
165 Hathway Sonali OM Crystal Cable Private Limited ^
166 Hathway SS Cable & Datacom LLP ^
167 IBN Lokmat News Private Limited
168 Iconix Lifestyle India Private Limited
169 IMG Reliance Limited
170 India Gas Solutions Private Limited
171 Jio Payments Bank Limited
172 Marks and Spencer Reliance India Private Limited
173 Net 9 Online Hathway Private Limited ^
174 Reliance Bally India Private Limited
175 Reliance Paul & Shark Fashions Private Limited
176 Reliance-Grand Vision India Supply Private Limited
177 Reliance-Vision Express Private Limited
178 Rutvi Project Managers Private Limited
179 Ryohin-Keikaku Reliance India Private Limited
180 Supreme Tradelinks Private Limited
181 Ubona Technologies Private Limited
182 V&B Lifestyle India Private Limited ^
183 Zegna South Asia Private Limited
^ Companies were related parties for part of the year.
392
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Sr.
No.
Name of the Related Party
184 Shri Mukesh D. Ambani
185 Shri Nikhil R. Meswani
186 Shri Hital R. Meswani
187 Shri P. M. S. Prasad
188 Shri Pawan Kumar Kapil
189 Shri Alok Agarwal
190 Shri Srikanth Venkatachari
191 Shri K. Sethuraman
192 Smt. Savithri Parekh *
193 Smt. Nita M. Ambani
194 Dhirubhai Ambani Foundation
195 Hirachand Govardhandas Ambani Public Charitable Trust
196 HNH Trust and HNH Research Society
197 Jamnaben Hirachand Ambani Foundation
198 Reliance Foundation
199 Reliance Foundation Institution of Education and Research
200 Reliance Foundations Youth Sports
201 IPCL Employees Gratuity Fund - Baulpur Unit
202 IPCL Employees Provident Fund Trust
203 Reliance Employees Provident Fund Bombay
204 Reliance Industries Limited Employees Gratuity Fund
205 Reliance Industries Limited Staff Superannuation Scheme
206 Reliance Industries Limited Vadodara Units Employees Superannuation Fund
207 Reliance Jio Infocomm Limited Employees Gratuity Fund
208 RIL Vadodara Unit Employees Gratuity Fund
* Appointed w.e.f. 29.03.2019
Relationship
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
393
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. (II) TRANSACTIONS DURING THE YEAR WITH RELATED PARTIES :
(` in crore)
Sr.
No.
Nature Of Transactions
(Excluding Reimbursements)
Associates/
Joint
Ventures
Key Managerial
Personnel/
Relative
Others
1
2
3
4
5
6
7
8
9
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
10
Employee Benefits Expense
11 Payment to Key Managerial Personnel / Relative
12
Sales and Distribution Expenses
13 Rent
14 Programming and Telecast Related Expenses
15 Professional Fees
16 General Expenses*
17 Donations
18
Finance Costs
Balances as at 31st March, 2019
1
2
3
4
5
6
7
Investments
Trade Receivables #
Loans and Advances
Deposits
Unsecured Loans
Trade and Other Payables #
Financial Guarantees
Note: Figures in italic represent Previous Year’s amounts.
* Does not include sitting fees of Non-Executive Directors.
# Include reimbursements
394
255
156
1,052
709
3,768
1
8
27
398
319
251
251
1,454
724
5,140
4,656
869
849
-
-
-
-
2,067
2,587
12
13
38
-
57
66
14
46
-
-
2
2
2,694
5,641
108
139
97
42
1,065
1,112
70
64
860
681
1,419
1,522
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
101
97
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
5
-
-
-
-
-
-
-
-
524
446
-
-
-
-
-
-
-
-
-
-
-
-
903
745
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
255
156
1,052
709
3,768
1
8
27
415
324
251
251
1,454
724
5,140
4,656
869
849
524
446
101
97
2,067
2,587
12
13
38
-
57
66
14
46
903
745
2
2
2,694
5,641
108
139
97
42
1,065
1,112
70
64
860
681
1,419
1,522
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
(III) DISCLOSURE IN RESPECT OF MAJOR RELATED PARTY TRANSACTIONS DURING THE YEAR :
Particulars
Relationship
2018-19
(` in crore)
2017-18
Purchase of Property, Plant and Equipment and Other Intangible Assets
East West Pipeline Limited
Gujarat Chemical Port Terminal Company Limited
Jamnagar Utilities & Power Private Limited
Reliance Industrial Infrastructure Limited
Sikka Ports and Terminals Limited
Purchase / Subscription of Investments
Ashwani Commercials Private Limited
Big Tree Entertainment Private Limited
DEN ADN Network Private Limited
Den Satellite Network Private Limited
Genesis Luxury Fashion Private Limited *
GTPL Hathway Limited
The Indian Film Combine Private Limited #
TV18 Home Shopping Network Limited
Brooks Brothers India Private Limited
Diesel Fashion India Reliance Private Limited
Football Sports Development Limited
Hathway CBN Multinet Private Limited
Hathway CCN Entertainment (India) Private Limited
Hathway CCN Multinet Private Limited
Hathway MCN Private Limited
Hathway Sai Star Cable & Datacom Private Limited
IMG Reliance Limited
India Gas Solutions Private Limited
Jio Payments Bank Limited
Net 9 Online Hathway Private Limited
Reliance Bally India Private Limited
Reliance Paul & Shark Fashions Private Limited
Reliance-Vision Express Private Limited
Rutvi Project Managers Private Limited
Ryohin-Keikaku Reliance India Private Limited
Sales/ Transfer/ Redemption of Investments
Algenol LLC
East West Pipeline Limited ^
Net Loans and Advances, Deposits Given/(Returned)
Ashwani Commercials Private Limited
Einsten Commericals Private Limited
Gujarat Chemical Port Terminal Company Limited
Kaniska Commercials Private Limited
Prakhar Commercials Private Limited
Vishnumaya Commercials Private Limited
Football Sports Development Limited
Reliance Paul & Shark Fashions Private Limited
Reliance-Vision Express Private Limited
Associate
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
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
-
1
18
20
216
136
278
4
64
-
391
-
61
-
6
-
1
4
6
4
10
-
6
70
3
-
1
3
1
3
-
3,768
(3)
-
(25)
-
(19)
-
51
1
3
* Company was an associate upto 06.09.2018 and became a subsidiary from 07.09.2018.
# Company was an associate upto 16.04.2018 and became a subsidiary from 17.04.2018.
^ Investment in Preference shares of East West Pipeline Limited sold to Jamnagar Utilities and Power Plant Limited and Sikka Ports and Terminals Limited.
5
8
116
5
22
-
-
-
-
269
-
340
28
1
5
42
-
-
-
-
-
9
-
-
-
4
2
3
-
6
1
-
-
(6)
(10)
3
-
(2)
42
-
-
395
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Particulars
Relationship
2018-19
(` in crore)
2017-18
Revenue from Operations
Den Satellite Network Private Limited
East West Pipeline Limited
Eenadu Television Private Limited
GTPL Hathway Limited
GTPL Kolkata Cable & Broadband Pariseva Limited
Gujarat Chemical Port Terminal Company Limited
Jamnagar Utilities & Power Private Limited
Reliance Industrial Infrastructure Limited
Sikka Ports and Terminals Limited
TV18 Home Shopping Network Limited
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
Jamnagar Utilities & Power Private Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Sikka Ports and Terminals Limited
Football Sports Development Limited
Purchases/ Material Consumed
East West Pipeline Limited
Gujarat Chemical Port Terminal Company Limited
Jamnagar Utilities & Power Private Limited
Reliance Industrial Infrastructure Limited
Sikka Ports and Terminals Limited
Brooks Brothers India Private Limited
Canali India Private Limited
Diesel Fashion India Reliance Private Limited
Marks and Spencer Reliance India Private Limited
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
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
Associate
Joint Venture
Joint Venture
Joint Venture
Joint Venture
2
34
2
3
2
2
279
1
22
2
4
6
9
1
3
10
3
-
-
3
1
1
1
3
2
-
2
17
229
1
-
15
2
-
4
1
160
6
21
1,259
3
1
1
2
-
37
1
-
-
2
200
2
3
-
3
6
4
1
3
3
2
5
6
1
1
1
1
2
3
30
2
5
218
10
3
15
2
1
2
-
109
1
21
589
1
-
1
2
* The Company was a Joint Venture upto 28.02.2018 and thereafter became subsidiary from 01.03.2018.
396
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
Particulars
Electric Power, Fuel and Water
Jamnagar Utilities & Power Private Limited
Hire Charges
East West Pipeline Limited
Reliance Industrial Infrastructure Limited
Sikka Ports and Terminals Limited
Employee Benefits Expense
I P C L Employees Provident Fund Trust
Reliance Employees Provident Fund Bombay
Reliance Industries Limited Employees Gratuity Fund
Reliance Industries Limited Staff Superannuation Scheme
Reliance Industries Limited Vadodara Unit Employees Superannuation Fund
Reliance Jio Infocomm Limited Employees Gratuity Fund
Payment To Key Managerial Personnel/ Relative
Shri Mukesh D. Ambani
Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri P.M.S. Prasad
Shri Pawan Kumar Kapil
Shri Alok Agarwal
Shri Srikanth Venkatachari
Shri K. Sethuraman
Smt. Savithri Parekh**
Smt Nita M. Ambani
Sales and Distribution Expenses
Big Tree Entertainment Private Limited
Gujarat Chemical Port Terminal Company Limited
Sikka Ports and Terminals Limited
IMG Reliance Limited
Rent
Ashwani Commercials Private Limited
Reliance Industrial Infrastructure Limited
Programming and Telecast Related Expense
Big Tree Entertainment Private Limited
Eenadu Television Private Limited
GTPL Hathway Limited
Football Sports Development Limited
IBN Lokmat News Private Limited
IMG Reliance Limited
* Also include Employee Contribution.
** Appointed w.e.f. 29.03.2019
Relationship
2018-19
(` in crore)
2017-18
Associate
5,140
4,656
Associate
Associate
Associate
Others*
Others*
Others*
Others*
Others*
Others*
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
Relative of KMP
Associate
Associate
Associate
Joint Venture
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
759
23
87
109
314
63
11
1
26
15
21
21
10
4
12
14
2
-
2
1
63
2,003
-
2
10
7
14
1
5
2
9
475
40
334
110
287
16
11
2
20
15
20
20
9
3
12
13
3
-
2
-
86
2,499
2
2
11
-
-
-
-
-
-
397
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Particulars
Professional Fees
Big Tree Entertainment Private Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
General Expenses
Eenadu Television Private Limited
Matrix Genetics LLC
Sikka Ports and Terminals Limited
IBN Lokmat News Private Limited
Indiacast Media Distribution Private Limited *
Jio Payments Bank Limited
Donations
Hirachand Govardhandas Ambani Public Charitable Trust
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Reliance Foundation Institution of Education and Research
Reliance Foundation Youth Sports
Finance Costs
Reliance Europe Limited
Relationship
2018-19
(` in crore)
2017-18
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Others
Others
Others
Others
Others
Associate
1
29
27
-
-
13
-
-
1
5
40
341
476
41
2
1
39
26
2
6
12
1
25
-
2
6
698
1
38
2
* The Company was a Joint Venture upto 28.02.2018 and thereafter became subsidiary from 01.03.2018.
398
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
(IV) BALANCES AS AT 31ST MARCH, 2019
Particulars
Loans and Advances
Football Sports Development Limited
Reliance Paul & Shark Fashions Private Limited
Reliance-Vision Express Private Limited
Deposits
Ashwani Commercials Private Limited
Atri Exports Private Limited
Carin Commercials Private Limited
Centura Agro Private Limited
Chander Commercials Private Limited
Creative Agrotech Private Limited
Einsten Commercials Private Limited
Fame Agro Private Limited
Gaurav Overseas Private Limited
Gujarat Chemical Port Terminal Company Limited
Honeywell Properties Private Limited
Jaipur Enclave Private Limited
Kaniska Commercials Private Limited
Marugandha Land Developers Private Limited
Netravati Commercials Private Limited
Noveltech Agro Private Limited
Parinita Commercials Private Limited
Pepino Farms Private Limited
Prakhar Commercials Private Limited
Rakshita Commercials Private Limited
Jamnagar Utilities & 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
Relationship
Joint Venture
Joint Venture
Joint Venture
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
As at
31st March, 2019
(` in crore)
As at
31st March, 2018
93
1
3
63
19
77
10
35
15
36
3
17
112
50
4
27
5
6
3
6
1
29
6
118
29
33
353
8
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
Associate
1,419
1,522
29.1 COMPENSATION OF KEY MANAGERIAL PERSONNEL
The compensation of director and other member of Key Managerial Personnel during the year was as follows:
Short-Term Benefits
i
ii
Post Employment Benefits
iii Other Long-Term Benefits
Share Based Payments
iv
v
Termination Benefits
Total
2018-19
(` in crore)
2017-18
94
3
-
2
-
99
91
2
-
2
-
95
399
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
30.1 DISCLOSURE OF GROUP’S INTEREST IN OIL AND GAS JOINT ARRANGEMENTS (JOINT OPERATIONS):
Sr.
No.
Name of the Fields in the Joint
Arrangement (Joint Operations)
Panna Mukta
Company’s %
Interest
Partners and their Participating Interest (PI)
Country
2018-19
30%
2017-18
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% ;
NEC - OSN - 97/2
KG - DWN - 98/3
GS - OSN - 2000/1
CB-ONN-2003/1 *
EFS JDA Partnership
Atlas Reliance Marcellus Joint Venture
Partnership
Oil and Natural Gas Corporation Limited - 40%
66.67%
60%
66.67% BP Exploration (Alpha) Limited - 33.33%
60% Niko (NECO) Limited - 10% ;
BP Exploration (Alpha) Limited - 30%
90%
-
45%
40%
90% Hardy Exploration and Production (India) Inc. - 10%
70% BP Exploration (Alpha) Limited - 30%
45% Pioneer Natural Resources USA Inc. - 46.354%;
Newpek LLC - 8.646%
40% Chevron Upstream Northeast LLC - 60%
India
India
India
India
India
India
USA
USA
USA
1
2
3
4
5
6
7
8
* Assigned entire PI and Operatorship to Sun Petro. Government approval received. PSC amendment under process.
30.2 QUANTITIES OF GROUP’S INTEREST (ON GROSS BASIS) IN PROVED RESERVES AND PROVED DEVELOPED RESERVES:
Reserves in India
Reserves outside India (North America)
Proved Reserves
(Million MT #)
Proved Developed Reserves
(Million MT #)
Proved Reserves
(Million MT #)
Proved Developed Reserves
(Million MT #)
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
3.39
(0.18)
-
(0.19)
3.02
3.71
(0.04)
-
(0.28)
3.39
0.26
0.03
-
(0.19)
0.10
0.58
(0.04)
-
(0.28)
0.26
10.52
(0.72)
(0.29)
(0.59)
8.92
10.91
0.33
-
(0.72)
10.52
3.42
(0.14)
(0.29)
(0.59)
2.40
3.68
0.46
-
(0.72)
3.42
Reserves in India
Reserves outside India (North America)
Proved Reserves
(Million M3 ^)
Proved Developed Reserves
(Million M3 ^)
Proved Reserves
(Million M3 ^)
Proved Developed Reserves
(Million M3 ^)
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
2018-19
2017-18
56,479
194
-
(1,434)
55,239
60,951
(2,563)
-
(1,909)
56,479
11,201
194
-
(1,434)
9,961
14,297
(1,187)
-
(1,909)
11,201
38,091
2,081
(112)
(1,638)
38,422
40,661
5,180
(5,221)
(2,529)
38,091
14,556
828
(112)
(1,638)
13,634
20,049
988
(3,952)
(2,529)
14,556
Oil:
Opening Balance
Revision of estimates
Sale during the year
Production
Closing Balance
# 1 MT = 7.5 bbl
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
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.
400
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
30.3 The 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 KGDWN-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 communicated the same to
GOI for resolution of disputes. Pending decision of the
arbitration, the demand from the GOI of $ 148 million
(` 1,024 crore) being the Company’s share [total demand
$ 247 million (` 1,707 crore)] towards additional Profit
Petroleum has been considered as contingent liability.
30.4 (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
Production Sharing Contract (“PSC”). The Company
has invoked the dispute resolution mechanism
in the PSC and issued a Notice of Arbitration
to the Government on 11th November, 2016.
The international arbitration panel has issued an
award in favour of the Company, BP Exploration
(Alpha) Limited “BP” & Niko (NECO) Limited “Niko”
(Consortium) rejecting completely the claims of
the Government of India against the Consortium
in respect of migrated gas, by a majority of 2 to 1
with two eminent international jurists deciding in
favour. All the contentions of the Consortium have
been upheld by the majority with a finding that the
Consortium was entitled to produce all gas from its
contract area. All claims made by the Government
of India in respect of migrated gas have been
rejected and the consortium is not liable to pay any
amount to the Government of India. During the
year, Government of India has filed appeal in
Delhi High Court.
(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 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
(c)
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)
(Refer Note 5) as at 31st March 2019 is disclosed
under Other Non-Current Assets. Revenue has been
recognised at the GOI notified prices in respect
of gas quantities sold from D1D3 field from
1st November 2014.
In December 2010, the Company and BG Exploration
and Production India Limited (together, the
’Claimants‘) referred a number of disputes,
differences and claims arising under two Production
Sharing Contracts entered into in 1994 among
the Claimants, Oil and Natural Gas Corporation
Limited (ONGC) and the Government (the ’PSCs‘)
to arbitration. The disputes relate to, among other
matters, 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 12th October, 2016.
Claimants have challenged certain parts of the FPA
before the English Court. English Court had remitted
Claimants’ (Shell-RIL) case, that there was agreement
between GOI and Contractor at Management
Committee level that certain costs will be fully
recoverable, to the Tribunal for reconsideration by
2nd October, 2018. Tribunal has delivered its Final
Partial Award on 1st October, 2018 and has provided
its unanimous final partial award which is favourable
to the Claimants. During the year, Government of
India has filed an appeal before the English Courts
against the Tribunal’s award.
(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) Due to Niko’s failure to pay the cash calls issued by
the Company as Operator of KG D6 Block pursuant to
the terms of the Joint Operating Agreement (“JOA”),
the Company and BP issued a Notice of Withdrawal to
Niko in terms of the JOA requiring Niko to withdraw
from the KG D6 PSC and JOA. Thereafter, Niko
401
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
has initiated arbitration proceedings against the Company and BP on 19 December 2018 and the arbitration tribunal has
been constituted and proceedings are yet to commence. Pending completion of assignment of PI of NIKO (6.67%) to the
Company, net payments made on behalf of Niko (i.e. 6.67%) since the date of default notice is classified as Receivable in the
books of accounts.
(f) Considering the complexity of above issues, the Company is of the view that any attempt for quantification of possible
exposure to the Company will have an effect of prejudicing Company’s legal position in the ongoing arbitration/litigations.
31. CONTINGENT LIABILITIES AND COMMITMENTS
(I)
(II)
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
- In respect of Others
Performance Guarantees
- In respect of Others
(iii) Outstanding Guarantees furnished to Banks and Financial Institutions including in
respect of Letters of Credits
(a)
(b)
COMMITMENTS
(A)
In respect of Joint Ventures
In respect of Others
Estimated amount of contracts remaining to be executed on capital account and not provided for:
(i)
(ii)
In respect of Joint Ventures
In respect of Others
(B) Uncalled Liability on Shares and Other Investments Partly Paid
(C)
Lease Commitments
Operating Lease Commitments
(i)
(ii)
(iii)
Not later than one year
Later than one year but not later than five years
Later than five years
(D) Other Commitments
(i)
Investments
(` in crore)
2018-19
2017-18
1,253
4,088
2,210
1,655
1,254
13,779
3,599
15,171
2,431
4,475
16,990
12,412
464
1,104
2,440
4,901
1,341
20
5,051
2,986
39,537
3,141
3,440
13,077
12,706
476
* The Group has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
(III) The Income -Tax Assessments of the Company have been completed up to Assessment Year 2016-17. The total outstanding
demand upto AY 2016-17 is ` 28 crore as on date. 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.
(IV) 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 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.
402
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
32. CAPITAL MANAGEMENT
The Group adheres to a disciplined Capital Management framework, the pillars of which are as follows:
a)
Maintain diversity of sources of financing and spreading the maturity across tenure buckets in order to minimise liquidity risk.
b)
c)
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 macroeconomic 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, 2019
(` in crore)
As at
31st March, 2018
2,87,505
1,33,027^
1,54,478
3,87,112
0.40
2,18,763
78,063
1,40,700
2,93,506
0.48
^
Cash and Marketable Securities include Cash and Cash Equivalents of ₹ 7,512 crore, Current Investments of ₹ 70,939 crore and Other Marketable Securities of ₹ 54,576
crore including investments in Jio Digital Fibre Private Limited and Reliance Jio Infratel Private Limited.
33. FINANCIAL INSTRUMENTS
A. FAIR VALUE MEASUREMENT HIERARCHY
As at 31st March, 2019
As at 31st March, 2018
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)
Particulars
Financial Assets
At Amortised Cost
Investments #
Trade Receivables
Cash and Cash Equivalents
Loans
Other Financial Assets
At FVTPL
Investments
Loans
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
57,181
30,089
7,512
7,256
11,724
50,418
102
914
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18,188
-
8
20,152
102
906
12,078
-
-
4,132
17,555
4,255
4,802
7,059
49,128
193
1,389
-
-
-
-
-
-
-
-
-
-
40,798
-
-
8,152
193
1,389
1,25,195
40,119
2,219
82,857
27,503
24,208
2,550
2,87,505
1,08,309
77,422
4,077
9
-
-
-
17
-
-
-
-
4,060
9
-
-
-
-
-
2,18,763
1,06,861
93,700
2,750
84
-
-
-
-
-
-
-
-
2,750
84
-
-
-
-
-
178
-
-
745
-
-
-
-
-
403
# Exclude Investments in Associates and Joint Ventures [` 2,694 crore (Previous Year ` 2,099 crore)] measured at cost (Refer Note 2.1).
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
Reconciliation of fair value measurement of the investment categorised at Level 3:
(` in crore)
Particulars
Opening Balance
Addition during the year
Sale/Reduction during the year
Total Gain/(Loss)
Closing Balance
Line item in which gain/loss recognised
As at 31st March, 2019
At FVTPL
178
11,636
248
512
12,078
Other Income - ` 246
crore realised; ` 266
crore unrealised
At FVTOCI
745
4,847
-
77,265
82,857
Other Comprehensive
Income - Items that
will not be reclassi-
fied to Profit or Loss
As at 31st March, 2018
At FVTPL
177
10
-
(9)
178
At FVTOCI
639
110
10
6
745
Other Comprehensive
Income - Items that
will not be reclassi-
fied to Profit or Loss
Other Income - ` (9)
crore unrealised
The financial instruments are categorised 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 recognised and subsequently re-measured at fair value as described below:
a)
b)
c)
d)
e)
f)
The fair value of investment in quoted Equity Shares, Bonds, Government Securities, Treasury Bills, Certificate of Deposits 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 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.
The fair value for Level 3 instruments is valued using inputs based on information about market participants assumptions and
other data that are available.
g) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.
h) 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) Market Risk
a)
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.
404
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
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, 2019
USD
1,14,151
87,289
(9,432)
EUR
10,552
1,699
(168)
JPY
5,738
10
(3)
As at 31st March, 2018
USD
88,980
92,174
(5,896)
EUR
9,757
1,905
(93)
JPY
1,722
72
-
(50,112)
(6,172)
(3,987)
1,31,737
(11,723)
-
-
360
(5,720)
-
-
25
(50,071)
(1,922)
(3,855)
1,19,410
(11,320)
-
-
249
(1,711)
-
-
83
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
Bond Future-Short
(` in crore)
As at
31st March, 2019
As at
31st March, 2018
1,09,411
1,15,221
64,840
2,89,472
40,822
13,228
(6,172)
184
90,201
91,947
38,144
2,20,292
10,863
17,705
(1,922)
-
*
Include ` 1,563 crore (Previous Year ` 814 crore) as Prepaid Financial Charges.
# Include ` 404 crore (Previous Year ` 715 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 price 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 ensures that sales of products are made to customers with appropriate
creditworthiness. Credit information is regularly shared between businesses and finance function, with a framework in place
to quickly identify and respond to cases of credit deterioration.
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.
405
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
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.
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 a range of short-dated, secure and liquid instruments including short-term bank deposits,
money market funds, reverse repos and similar instruments. The portfolio of these investments is diversified to avoid
concentration risk in any one instrument or counterparty.
Particulars*
Borrowings
Non-Current #
Current ^
Total
Derivative Liabilities
Forwards
Options
Currency Swaps
Interest Rate Swaps
Total
Maturity Profile as at 31st March, 2019
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
3-5
Years
Above
5 Years
Total
(` in crore)
4,482
60,302
64,784
1,192
53
1
153
1,399
3,842
1,549
5,391
7,457
2,989
10,446
82,466
-
82,466
57,601
-
57,601
68,784
-
68,784
2,24,632
64,840
2,89,472
945
-
-
1
946
772
-
(53)
6
725
23
-
735
54
812
1
-
(37)
231
195
-
-
-
-
-
2,933
53
646
445
4,077
(` in crore)
* Does not include Trade Payables (Current) amounting to ` 1,08,309 crore.
# Include ` 1,563 crore as Prepaid Finance Charges.
^ Include ` 404 crore as Commercial Paper Discount.
Particulars**
Borrowings
Non-Current ##
Current ^^
Total
Derivative Liabilities
Forwards
Options
Currency Swaps
Interest Rate Swaps
Total
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
** Does not include Trade Payables (Current) amounting to ` 1,06,861 crore.
## Include ` 814 crore as Prepaid Finance Charges.
^^ Include ` 715 crore as Commercial Paper Discount.
406
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
C. RECLASSIFICATION
The Company has reclassified certain non-derivative financial assets on 1st day of July 2018 from Fair Value through
Profit and Loss (FVTPL) to Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI) on account of its
business model change.
Cost and Fair value of reclassified assets as on reporting date is ` 18,722 crore and ` 20,059 crore respectively. Effective interest
rate is 7.54% per annum. Interest revenue recognised during the period is ` 1,060 crore.
Change in fair value gain/(loss) of ` 277 crore that would have been recognised in profit and loss during the reporting period if
the financial assets had not been reclassified.
Refer Note 2 and 7.
D. 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.
Disclosure of effect of Hedge Accounting:
A.
Fair Value Hedge
Hedging Instruments
Nominal
Value
Quantity
(Kbbl)
(Kgs)
Carrying Amount
Assets Liabilities
Changes in
Fair Value
Hedge
Maturity
(` in crore)
Line Item in
Balance Sheet
480
-
-
-
37
(37)
April 2019 to
December 2019
Other Financial
Liabilities
47,479
3,60,229
2,981
689
559
43 February 2019 to
December 2021
Other Financial
Assets / Liabilities
-
-
-
-
-
-
-
-
29,393
2,34,884
4,002
197
826
(823)
January 2018 to
December 2020
Other Financial
Assets / Liabilities
Particulars
As at 31st March, 2019
Foreign Currency Risk
Foreign Currency Risk
Component - Forwards
Commodity Price Risk
Derivative Contracts
As at 31st March, 2018
Foreign Currency Risk
Foreign Currency Risk
Component - Forwards
Commodity Price Risk
Derivative Contracts
Hedged Items
Particulars
As at 31st March, 2019
Foreign Currency Risk
Import Firm Commitments
Commodity Price Risk
Firm Commitments for purchase of feedstock and freight
Firm Commitments for sale of products
Inventories
As at 31st March, 2018
Foreign Currency Risk
Export Firm Commitments
Commodity Price Risk
Firm Commitments for purchase of feedstock and freight
Firm Commitments for sale of products
Inventories
Carrying Amount
Assets Liabilities
Changes
in Fair Value
(` in crore)
Line Item in Balance Sheet
37
131
-
5,021
-
55
346
5,566
-
198
414
-
-
29
-
-
37
Other Current Assets
20 Other Current Assets / Liabilities
Other Current Assets
Inventories
(414)
308
-
-
208 Other Current Assets / Liabilities
Other Current Assets
358
Inventories
257
407
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
B. Cash Flow Hedge
Hedging Instruments
Particulars
As at 31st March, 2019
Foreign Currency Risk
Components - Trade
Payable
Interest Rate Risk
Interest Rate Swap
As at 31st March, 2018
Foreign Currency Risk
Interest Rate Risk
Interest Rate Swap
Hedged Items
Nominal
Value
Carrying Amount
Assets Liabilities
Changes in
Fair Value
Hedge
Maturity
20,759
-
-
-
-
-
2,546
53
20,747
-
-
-
12
-
-
April 2019 to
December 2019
-
-
43
April 2022 to June 2022
Other Financial Assets
(` in crore)
Line Item in
Balance Sheet
Trade Payable
-
Particulars
Nominal Value
Changes in
Fair Value
Hedge Reserve
As at 31st March, 2019
Foreign Currency Risk
Highly Probable Exports
Interest Rate Risk
Interest Rate Risk Component
As at 31st March, 2018
Foreign Currency Risk
Highly Probable Exports
Interest Rate Risk
Interest Rate Risk Component
C. Movement in Cash Flow Hedge
20,759
(12)
-
-
2,546
-
-
-
12
-
-
43
(` in crore)
Line Item in
Balance Sheet
Other Equity
-
-
Borrowings -
Non-Current
Particulars
2018-19
2017-18
(` in crore)
Line Item in Balance Sheet / Statement
of Profit and Loss
At the beginning of the year
Gain/ (loss) recognised in Other Comprehensive Income
during the year
Amount reclassified to Profit and Loss during the year
At the end of the year
44
(1,748)
1,750
46
1,736
391 Items that will be reclassified to
Profit & Loss
(2,083) Sale
44 Other Comprehensive Income
Sl.
No.
1
2
3
4
34. 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”.
b)
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”.
408
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
(I) PRIMARY SEGMENT INFORMATION
Particulars
Refining
Petrochemicals
Oil and Gas
Organised Retail
Digital Services
Others
Unallocable
Total
2018-19 2017-18 2018-19
2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18
(` in crore)
1
2
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)
3 Other
Information
Segment Assets
Segment Liabilities
Capital Expenditure
Depreciation /
Amortisation and
Depletion Expense
3,07,154
86,834
1,54,502
2,28,997
17,563
77,098
3,93,988 3,06,095 1,72,065
1,14,229
11,070
1,25,299
4,384
621
5,005
4,966
238
1,29,466
1,100
5,204 1,30,566
68,729
469
69,198
9,064
37,442
46,506
4,685
19,231
23,916
18,239
3,912
22,151
9,125
3,492
12,617
1,000
3,92,988
696
3,05,399
15,243
1,56,822
9,390
1,15,909
-
5,005
-
5,204
14,209
1,16,357
6,952
62,246
6,993
39,513
3,091
20,825
4,344
17,807
2,337
10,280
-
-
-
-
-
4,30,731
6,22,809
-
-
-
-
- 6,22,809 4,30,731
-
-
41,789
5,81,020
22,466
4,08,265
19,868
25,869 #
32,173
21,179
(1,379)
(1,536)
5,546
2,064
8,784
3,174
1,230
1,636
484
2,140
66,706
54,526
19,868
25,869
32,173
21,179
(1,379)
(1,536)
5,546
2,064
8,784
3,174
1,230
1,636
19,868
25,869
32,173
21,179
(1,379)
(1,536)
5,546
2,064
8,784
3,174
1,230
1,636
16,495
5,016
(10,995)
11,683
3,707
(26,385)
8,052
2,952
(2,960)
10,098
3,248
(16,306)
16,495
5,016
55,227
11,683
3,707
39,837
8,052
2,952
49,426
10,098
3,248
36,080
-
8
1
1
-
-
(177)
(71)
(36)
(4)
(37)
61
-
-
(249)
(5)
19,868
25,877
32,174
21,180
(1,379)
(1,536)
5,369
1,993
8,748
3,170
1,193
1,697
(26,385)
(16,306)
39,588
36,075
2,20,107
1,93,397
14,105
3,170
2,01,539
1,67,221
15,319
3,121
1,29,955
84,432
1,527
5,472
1,23,775
79,660
8,953
4,681
36,135
54,160
5,899
3,021
37,310
47,210
(1,277)
3,203
35,560
22,508
4,971
655
24,433
14,925
4,837
465
3,60,404
1,50,083
(40,621)
6,558
2,49,730
1,48,747
48,145
3,630
66,047
11,782
15,754
1,525
52,833
9,596
8,165
962
1,54,198
4,86,044
1,735
533
1,26,728
3,48,989
(4,889)
644
10,02,406
10,02,406
3,370
20,934
8,16,348
8,16,348
79,253
16,706
* Total Value of Sales and Services is after elimination of inter segment turnover of ` 1,47,472 crore (Previous Year ` 1,11,598 crore).
# Includes exceptional item of ` 1,087 crore.
(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.
409
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
–
–
–
The Organised Retail segment includes organised retail business in India.
The Digital Services segment includes range of digital services in India and investment in telecom infrastructure business.
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
Segment Revenue – External Turnover
Within India
Outside India
Total
Non-Current Assets
2
Within India
Outside India
Total
2018-19
3,18,608
3,04,201
6,22,809
7,50,163
21,488
7,71,651
(` in crore)
2017-18
2,09,093
2,21,638
4,30,731
6,09,272
23,290
6,32,562
35. ENTERPRISES CONSOLIDATED AS SUBSIDIARY IN ACCORDANCE WITH INDIAN ACCOUNTING STANDARD 110 - CONSOLIDATED FINANCIAL
STATEMENTS
Sr.
No.
Name of the Enterprise
ABC Cable Network Private Limited
1
Adhunik Cable Network Private Limited
2
Adventure Marketing Private Limited
3
AETN18 Media Private Limited
4
Affinity Names Inc. *
5
Ambika DEN Cable Network Private Limited
6
Amogh Broad Band Services Private Limited
7
Angel Cable Network Private Limited
8
Antique Communications Private Limited
9
10 Augment Cable Network Private Limited
11 Aurora Algae Inc. *
12 Bali Den Cable Network Private Limited
13 Bee Network and Communication Private Limited
14 Bhadohi DEN Entertainment Private Limited
15 Big Den Entertainment Private Limited
16 Binary Technology Transfers Private Limited
17 Blossom Entertainment Private Limited
18 Cab-i-Net Communications Private Limited
19 Channels India Network Private Limited
20 Chennai Cable Vision Network Private Limited
21 Colorful Media Private Limited
22 Colosceum Media Private Limited
23 Crystal Vision Media Private Limited
24 Den A.F. Communication Private Limited
25 Den Aman Entertainment Private Limited
26 DEN Ambey Cable Networks Private Limited
27 Den Ashu Cable Private Limited
* Subsidiary Company having 31st December as reporting date.
410
Country of
Incorporation
Proportion of
Ownership Interest
India
India
India
India
USA
India
India
India
India
India
USA
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
22.45%
78.62%
100.00%
21.27%
100.00%
40.09%
78.62%
22.45%
78.62%
78.62%
100.00%
40.12%
71.96%
20.45%
78.62%
71.96%
78.62%
40.11%
68.82%
54.68%
100.00%
73.15%
40.09%
78.62%
40.09%
47.95%
40.09%
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Sr.
No.
Name of the Enterprise
28 DEN BCN Suncity Network Private Limited
29 Den Bindra Network Private Limited
30 Den Broadband Private Limited
31 Den Budaun Cable Network Private Limited
32 Den Citi Channel Private Limited
33 Den Classic Cable TV Services Private Limited
34 DEN Crystal Vision Network Private Limited
35 Den Digital Cable Network Private Limited
36 Den Discovery Digital Network Private Limited
37 Den Elgee Cable Vision Private Limited
38 Den Enjoy Cable Networks Private Limited
39 Den Enjoy Navaratan Network Private Limited
40 DEN Enjoy SBNM Cable Network Private Limited
41 Den F K Cable TV Network Private Limited
42 Den Faction Communication System Private Limited
43 Den Fateh Marketing Private Limited
44 Den Futuristic Cable Networks Private Limited
45 DEN Harsh Mann Cable Network Private Limited
46 Den Jai Ambey Vision Cable Private Limited
47 Den Kashi Cable Network Private Limited
48 Den Kattakada Telecasting and Cable Services Private Limited
49 DEN Krishna Cable TV Network Private Limited
50 Den Maa Sharda Vision Cable Networks Private Limited
51 Den Mahendra Satellite Private Limited
52 Den Malabar Cable Vision Private Limited
53 DEN Malayalam Telenet Private Limited
54 Den MCN Cable Network Private Limited
55 Den Mod Max Cable Network Private Limited
56 DEN MTN Star Vision Networks Private Limited
57 Den Nashik City Cable Network Private Limited
58 Den Networks Limited
59 DEN Patel Entertainment Network Private Limited
60 DEN Pawan Cable Network Private Limited
61 Den Pradeep Cable Network Private Limited
62 DEN Prayag Cable Networks Private Limited
63 Den Premium Multilink Cable Network Private Limited
64 Den Prince Network Private Limited
65 Den Radiant Satelite Cable Network Private Limited
66 Den Rajkot City Communication Private Limited
67 Den Sahyog Cable Network Private Limited
68 Den Sariga Communications Private Limited
69 Den Satellite Cable TV Network Private Limited
70 Den Saya Channel Network Private Limited
71 Den Steel City Cable Network Private Limited
72 DEN STN Television Network Private Limited
73 Den Supreme Satellite Vision Private Limited
74 DEN Varun Cable Network Private Limited
75 DEN VM Magic Entertainment Private Limited
76 Den-Manoranjan Satellite Private Limited
77 Desire Cable Network Private Limited
78 Devine Cable Network Private Limited
Country of
Incorporation
Proportion of
Ownership Interest
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
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
40.11%
40.09%
78.62%
40.09%
78.62%
40.09%
40.10%
69.63%
40.09%
40.09%
40.09%
20.45%
20.45%
40.10%
78.62%
40.09%
78.62%
40.09%
40.10%
40.10%
78.62%
58.18%
40.10%
47.17%
40.09%
40.09%
40.09%
40.10%
20.45%
40.09%
78.62%
40.09%
49.53%
78.62%
55.62%
40.09%
40.09%
51.10%
40.08%
78.62%
40.10%
40.09%
40.09%
78.62%
20.45%
40.09%
40.09%
78.62%
40.09%
78.62%
78.62%
411
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sr.
No.
Name of the Enterprise
79 Digital Media Distribution Trust
80 Disk Cable Network Private Limited
81 Divya Drishti Den Cable Network Private Limited
82 Drashti Cable Network Private Limited
83 Dronagiri Bokadvira East Infra Limited
84 Dronagiri Bokadvira North Infra Limited
85 Dronagiri Bokadvira South Infra Limited
86 Dronagiri Bokadvira West Infra Limited
87 Dronagiri Dongri East Infra Limited
88 Dronagiri Dongri North Infra Limited
89 Dronagiri Dongri South Infra Limited
90 Dronagiri Dongri West Infra Limited
91 Dronagiri Funde East Infra Limited
92 Dronagiri Funde North Infra Limited
93 Dronagiri Funde South Infra Limited
94 Dronagiri Funde West Infra Limited
95 Dronagiri Navghar East Infra Limited
96 Dronagiri Navghar North First Infra Limited
97 Dronagiri Navghar North Infra Limited
98 Dronagiri Navghar North Second Infra Limited
99 Dronagiri Navghar South First Infra Limited
100 Dronagiri Navghar South Infra Limited
101 Dronagiri Navghar South Second Infra Limited
102 Dronagiri Navghar West Infra Limited
103 Dronagiri Pagote East Infra Limited
104 Dronagiri Pagote North First Infra Limited
105 Dronagiri Pagote North Infra Limited
106 Dronagiri Pagote North Second Infra Limited
107 Dronagiri Pagote South First Infra Limited
108 Dronagiri Pagote South Infra Limited
109 Dronagiri Pagote West Infra Limited
110 Dronagiri Panje East Infra Limited
111 Dronagiri Panje North Infra Limited
112 Dronagiri Panje South Infra Limited
113 Dronagiri Panje West Infra Limited
114 e-Eighteen.com Limited
115 Ekta Entertainment Network Private Limited
116 Elite Cable Network Private Limited
117 Eminent Cable Network Private Limited
118 Ethane Crystal LLC
119 Ethane Emerald LLC
120 Ethane Opal LLC
121 Ethane Pearl LLC
122 Ethane Sapphire LLC
123 Ethane Topaz LLC
124 Fab Den Network Private Limited
125 Fortune (Baroda) Network Private Limited
126 Fun Cable Network Private Limited
127 Galaxy Den Media & Entertainment Private Limited
128 Gemini Cable Network Private Limited
129 Genesis Colors Limited
412
Country of
Incorporation
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
India
India
India
India
India
India
India
India
India
India
India
India
India
Marshall Islands
Marshall Islands
Marshall Islands
Marshall Islands
Marshall Islands
Marshall Islands
India
India
India
India
India
India
Proportion of
Ownership Interest
100.00%
40.09%
20.45%
78.62%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
67.26%
40.09%
57.57%
44.02%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
40.09%
40.09%
78.62%
40.09%
40.09%
60.45%
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Sr.
No.
Name of the Enterprise
Country of
Incorporation
Proportion of
Ownership Interest
130 Genesis La Mode Private Limited
131 Genesis Luxury Fashion Private Limited
132 GLB Body Care Private Limited
133 GLF Lifestyle Brands Private Limited
134 Glimpse Communications Private Limited
135 GML India Fashion Private Limited
136 Greycells18 Media Limited
137 Hathway Bhawani Cabletel & Datacom Limited
138 Hathway Broadband Private Limited
139 Hathway Cable and Datacom Limited
140 Hathway Cnet Private Limited
141 Hathway Digital Private Limited
142 Hathway Enjoy Cable Network Private Limited
143 Hathway Gwalior Cable & Datacom Private Limited
144 Hathway Internet Satellite Private Limited
145 Hathway JMD Farukhabad Cable Network Private Limited
146 Hathway Kokan Crystal Cable Network Private Limited
147 Hathway Krishna Cable Private Limited
148 Hathway Mantra Cable & Datacom Private Limited
149 Hathway Media Vision Private Limited
150 Hathway Mysore Cable Network Private Limited
151 Hathway Nashik Cable Network Private Limited
152 Hathway New Concept Cable & Datacom Private Limited
153 Hathway Software Developers Private Limited
154 Hathway Space Vision Cabletel Private Limited
155 Hathway United Cables Private Limited
156 Ideal Cables Private Limited
157 Independent Media Trust
158 IndiaCast Media Distribution Private Limited
159 IndiaCast UK Limited
160 IndiaCast US Limited
161 Indiavidual Learning Private Limited
162 Indiawin Sports Private Limited
163 Indradhanush Cable Network Private Limited
164 Infomedia Press Limited
165 ITV Interactive Media Private Limited
166 Jhankar Cable Network Private Limited
167 Jio Cable and Broadband Holdings Private Limited
168 Jio Content Distribution Holdings Private Limited
169 Jio Digital Cableco Private Limited
170 Jio Digital Distribution Holdings Private Limited
171 Jio Estonia OÜ *
172 Jio Futuristic Digital Holdings Private Limited
173 Jio Information Solutions Limited
174 Jio Infrastructure Management Services Limited (Formerly known as Reliance Digital Media
Distribution Limited)
175 Jio Internet Distribution Holdings Private Limited
176 Jio Television Distribution Holdings Private Limited
177 Kalamboli East Infra Limited
178 Kalamboli North First Infra Limited
* Subsidiary Company having 31st December as reporting date.
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
India
India
India
UK
USA
India
India
India
India
India
India
India
India
India
India
Estonia
India
India
India
India
India
India
India
81.20%
67.95%
87.83%
81.20%
78.62%
81.20%
65.61%
37.13%
71.96%
71.96%
71.96%
71.96%
71.96%
71.96%
71.96%
71.96%
69.34%
71.96%
71.96%
71.96%
71.96%
64.81%
71.96%
71.96%
71.96%
71.96%
71.96%
100.00%
31.48%
31.48%
31.48%
85.25%
100.00%
78.62%
37.08%
71.96%
78.62%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
413
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sr.
No.
Name of the Enterprise
179 Kalamboli North Infra Limited
180 Kalamboli North Second Infra Limited
181 Kalamboli North Third Infra Limited
182 Kalamboli South First Infra Limited
183 Kalamboli South Infra Limited
184 Kalamboli West Infra Limited
185 Kanhatech Solutions Limited
186 Kishna DEN Cable Networks Private Limited
187 Liberty Media Vision Private Limited
188 Libra Cable Network Private Limited
189 M Entertainments Private Limited
190 Mahadev Den Cable Network Private Limited
191 Mahavir Den Entertainment Private Limited
192 Maitri Cable Network Private Limited
193 Mansion Cable Network Private Limited
194 Marble Cable Network Private Limited
195 Meerut Cable Network Private Limited
196 Mindex 1 Limited
197 Model Economic Township Limited
198 Moneycontrol Dot Com India Limited
199 Mountain Cable Network Private Limited
200 Multi Channel Cable Network Private Limited
201 Multi Star Cable Network Private Limited
202 Multitrack Cable Network Private Limited
203 Naroda Power Private Limited
204 Nectar Entertainment Private Limited
205 Network18 Media & Investments Limited
206 Network18 Media Trust
207 New Emerging World of Journalism Private Limited
208 Petroleum Trust
209 Radiant Satellite (India) Private Limited
210 Radisys B.V. *
211 Radisys Canada Inc. *
212 Radisys Cayman Limited *
213 Radisys Convedia (Ireland) Limited *
214 Radisys Corporation *
215 Radisys GmbH *
216 Radisys India Private Limited
217 Radisys International LLC *
218 Radisys International Singapore Pte. Ltd. *
219 Radisys Poland sp. z o.o *
220 Radisys Spain S.L.U. *
221 Radisys Systems Equipment Trading (Shanghai) Co. Ltd. *
222 Radisys Technologies (Shenzhen) Co. Ltd. *
223 Radisys UK Limited *
224 RB Holdings Private Limited
225 RB Media Holdings Private Limited
226 RB Mediasoft Private Limited
227 Recron (Malaysia) Sdn. Bhd. *
228 Reliance Ambit Trade Private Limited
* Subsidiary Company having 31st December as reporting date.
414
Country of
Incorporation
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Gibraltar
India
India
India
India
India
India
India
India
India
India
India
India
India
Netherlands
Canada
Cayman Islands
Ireland
USA
Germany
India
USA
Singapore
Poland
Spain
China
China
UK
India
India
India
Malaysia
India
Proportion of
Ownership Interest
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
20.45%
71.96%
40.09%
83.17%
40.09%
40.21%
20.45%
51.89%
78.62%
40.09%
100.00%
100.00%
67.26%
20.45%
78.62%
40.09%
40.10%
100.00%
78.62%
73.15%
73.15%
75.00%
100.00%
40.09%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Sr.
No.
Name of the Enterprise
Country of
Incorporation
Proportion of
Ownership Interest
229 Reliance Aromatics and Petrochemicals Limited
230 Reliance Brands Limited
231 Reliance Chemicals Limited
232 Reliance Clothing India Private Limited
233 Reliance Commercial Dealers Limited
234 Reliance Comtrade Private Limited
235 Reliance Content Distribution Limited
236 Reliance Corporate IT Park Limited
237 Reliance Eagleford Upstream GP LLC *
238 Reliance Eagleford Upstream Holding LP *
239 Reliance Eagleford Upstream LLC *
240 Reliance Eminent Trading & Commercial Private Limited
241 Reliance Energy and Project Development Limited
242 Reliance Energy Generation and Distribution Limited
243 Reliance Ethane Holding Pte Limited
244 Reliance Exploration & Production DMCC *
245 Reliance Gas Lifestyle India Private Limited
246 Reliance Gas Pipelines Limited
247 Reliance Global Energy Services (Singapore) Pte Ltd.
248 Reliance Global Energy Services Limited
249 Reliance Holding USA, Inc. *
250 Reliance Industrial Investments and Holdings Limited
251 Reliance Industries (Middle East) DMCC *
252 Reliance Industries Uruguay Petroquímica S.A. (Formerly known as Dreketi S.A.) *
253 Reliance Innovative Building Solutions Private Limited
254 Reliance Jio Digital Services Limited
255 Reliance Jio Global Resources LLC *
256 Reliance Jio Infocomm Limited
257 Reliance Jio Infocomm Pte. Limited *
258 Reliance Jio Infocomm UK Limited *
259 Reliance Jio Infocomm USA, Inc. *
260 Reliance Jio Media Limited
261 Reliance Jio Messaging Services Limited
262 Reliance Lifestyle Holdings Limited
263 Reliance Marcellus II LLC *
264 Reliance Marcellus LLC *
265 Reliance Navi Mumbai Infra Limited
266 Reliance Payment Solutions Limited
267 Reliance Petro Marketing Limited
268 Reliance Polyolefins Limited
269 Reliance Progressive Traders Private Limited
270 Reliance Prolific Commercial Private Limited
271 Reliance Prolific Traders Private Limited
272 Reliance Retail Finance Limited
273 Reliance Retail Insurance Broking Limited
274 Reliance Retail Limited
275 Reliance Retail Ventures Limited
276 Reliance Sibur Elastomers Private Limited
277 Reliance SMSL Limited
278 Reliance Strategic Investments Limited
* Subsidiary Company having 31st December as reporting date.
India
India
India
India
India
India
India
India
USA
USA
USA
India
India
India
Singapore
UAE
India
India
Singapore
UK
USA
India
UAE
Uruguay
India
India
USA
India
Singapore
UK
USA
India
India
India
USA
USA
India
India
India
India
India
India
India
India
India
India
India
India
India
India
100.00%
75.56%
100.00%
94.40%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
38.72%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
99.44%
99.44%
99.44%
99.44%
99.44%
100.00%
100.00%
94.45%
100.00%
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%
415
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Country of
Incorporation
Proportion of
Ownership Interest
India
India
India
India
India
India
India
USA
Cyprus
India
Malaysia
India
USA
USA
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
UK
India
USA
India
India
India
India
100.00%
100.00%
100.00%
100.00%
100.00%
94.40%
94.45%
100.00%
21.27%
40.09%
100.00%
100.00%
71.82%
71.82%
71.82%
78.62%
40.09%
78.62%
40.09%
40.09%
40.09%
100.00%
83.17%
78.62%
41.70%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
40.09%
71.96%
40.09%
21.27%
21.27%
21.27%
78.62%
71.96%
100.00%
71.96%
Sr.
No.
Name of the Enterprise
279 Reliance Universal Enterprises Limited
280 Reliance Universal Traders Private Limited
281 Reliance Vantage Retail Limited
282 Reliance Ventures Limited
283 Reliance World Trade Private Limited
284 Reliance-GrandOptical Private Limited
285 Rhea Retail Private Limited
286 RIL USA, Inc. *
287 Roptonal Limited
288 Rose Entertainment Private Limited
289 RP Chemicals (Malaysia) Sdn. Bhd. *
290 RRB Mediasoft Private Limited
291 Saavn Inc.
292 Saavn LLC
293 Saavn Media Private Limited
294 Sanmati DEN Cable TV Network Private Limited
295 Sanmati Entertainment Private Limited
296 Shree Sidhivinayak Cable Network Private Limited
297 Silverline Television Network Private Limited
298 Sree Gokulam Starnet Communication Private Limited
299 Srishti DEN Networks Private Limited
300 Surela Investment and Trading Limited
301 The Indian Film Combine Private Limited
302 Trident Entertainment Private Limited
303 TV18 Broadcast Limited
304 Ulwe East Infra Limited
305 Ulwe North Infra Limited
306 Ulwe South Infra Limited
307 Ulwe Waterfront East Infra Limited
308 Ulwe Waterfront North Infra Limited
309 Ulwe Waterfront South Infra Limited
310 Ulwe Waterfront West Infra Limited
311 Ulwe West Infra Limited
312 United Cable Network (Digital) Private Limited
313 UTN Cable Communication Private Limited
314 VBS Digital Distribution Network Private Limited
315 Viacom18 Media (UK) Limited
316 Viacom18 Media Private Limited
317 Viacom18 US Inc.
318 Victor Cable TV Network Private Limited
319 Vision India Network Private Limited
320 Watermark Infratech Private Limited
321 Win Cable & Datacom Private Limited
* Subsidiary Company having 31st December as reporting date.
416
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 36. SIGNIFICANT ENTERPRISES CONSOLIDATED AS ASSOCIATES AND JOINT VENTURES IN ACCORDANCE WITH INDIAN ACCOUNTING STANDARD
28 - INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
Sr.
No.
Name of the Enterprise
1
Big Tree Entertainment DMCC
2
Big Tree Entertainment Lanka Private Limited
3
Big Tree Entertainment Private Limited
4
Big Tree Entertainment Singapore Pte. Limited
5
Big Tree Sport & Recreational Events Tickets Selling L.L.C
6
Bookmyshow Sdn. Bhd.
7
Brooks Brothers India Private Limited
8
Burberry India Private Limited
Canali India Private Limited
9
10 CCN DEN Network Private Limited
11 Clayfin Technologies Private Limited
12 D. E. Shaw India Securities Private Limited
13 DEN ABC Cable Network Ambarnath Private Limited
14 DEN ADN Network Private Limited
15 DEN New Broad Communication Private Limited
16 Den Satellite Network Private Limited
17 Diesel Fashion India Reliance Private Limited
18 DL GTPL Broadband Private Limited
19 DL GTPL Cabnet Private Limited
20 Dyulok Technologies Private Limited
21 Eenadu Television Private Limited
22 Fantain Sports Private Limited
23 Foodfesta Wellcare Private Limited
24 Football Sports Development Limited
25 Gaurav Overseas Private Limited
26 GenNext Ventures Investment Advisers LLP
27 Go2Space Event Management Private Limited
28 GTPL Abhilash Communication Private Limited
29 GTPL-Ahmedabad Cable Network Private Limited
30 GTPL Anjali Cable Network Private Limited
31 GTPL Bansidhar Telelink Private Limited
32 GTPL Bariya Television Network
33 GTPL Bawa Cable
34 GTPL Blue Bell Network Private Limited
35 GTPL Broadband Private Limited
36 GTPL Chaudhary Vision
37 GTPL City Channel Private Limited
38 GTPL Crazy Network
39 GTPL Dahod Television Network Private Limited
40 GTPL DCPL Private Limited
41 GTPL Deesha Cable Net Private Limited
42 GTPL Hariom World Vision
43 GTPL Hathway Limited
44 GTPL Henish Cable Vision
45 GTPL Insight Channel Network Private Limited
46 GTPL Jay Santoshima Network Private Limited
47 GTPL Jaydeep Cable
48 GTPL Junagadh Network Private Limited
49 GTPL Jyoti Cable
50 GTPL Kaizen Infonet Private Limited
Country of
Incorporation
Proportion of
Ownership Interest
UAE
Sri Lanka
India
Singapore
UAE
Malaysia
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
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
28.74%
28.74%
28.74%
28.74%
14.08%
28.74%
37.02%
29.62%
33.30%
40.09%
39.15%
50.00%
40.09%
40.09%
40.09%
39.31%
37.02%
6.98%
6.98%
21.56%
10.22%
20.17%
28.74%
55.00%
50.00%
50.00%
28.74%
13.70%
20.01%
26.86%
13.70%
13.70%
13.70%
26.86%
26.86%
13.70%
13.70%
13.43%
13.70%
26.86%
26.86%
13.70%
26.86%
13.70%
20.00%
13.70%
13.70%
13.70%
13.70%
26.86%
417
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Sr.
No.
Name of the Enterprise
51 GTPL KCBPL Broad Band Private Limited
52 GTPL Khambhat Cable Network
53 GTPL Khusboo Video Channel
54 GTPL Kolkata Cable & Broadband Pariseva Limited
55 GTPL Leo Vision
56 GTPL Link Network Private Limited
57 GTPL Lucky Video Cable
58 GTPL Ma Bhagawati Entertainment Services
59 GTPL Media Entertainment
60 GTPL Meghana Distributors Private Limited
61 GTPL Narmada Cable Services
62 GTPL Narmada Cyberzone Private Limited
63 GTPL Parshwa Cable Network Private Limited
64 GTPL Parth World Vision
65 GTPL SK Vision
66 GTPL Sai Vision
67 GTPL Sai World Channel
68 GTPL Sanjiv Cable Vision
69 GTPL-Sharda Cable Network Private Limited
70 GTPL Shiv Cable
71 GTPL Shiv Cable
72 GTPL Shiv Cable Network
73 GTPL Shiv Cable Vision
74 GTPL Shiv Network Private Limited
75 GTPL Shivshakti Network Private Limited
76 GTPL Shree Shani Cable
77 GTPL Shreenathji Communication
78 GTPL SK Network Private Limited
79 GTPL SMC Network Private Limited
80 GTPL Solanki Cable Network Private Limited
81 GTPL Sorath Telelink Private Limited
82 GTPL Space City Private Limited
83 GTPL Surat Telelink Private Limited
84 GTPL Swastik Communication
85 GTPL Tridev Cable Network
86 GTPL TV Tiger Private Limited
87 GTPL V&S Cable Private Limited
88 GTPL Vidarbha Telelink Private Limited
89 GTPL Video Badshah Private Limited
90 GTPL Video Vision Private Limited
91 GTPL Vision Services Private Limited
92 GTPL Vraj Cable
93 GTPL VVC Network Private Limited
94 GTPL World View Cable
95 GTPL World Vision
96 GTPL Zigma Vision Private Limited
97 Gujarat Chemical Port Terminal Company Limited
98 Hathway Bhaskar CCN Multi Entertainment Private Limited
99 Hathway Bhawani NDS Network Private Limited
100 Hathway Cable MCN Nanded Private Limited
101 Hathway CBN Multinet Private Limited
102 Hathway CCN Entertainment (India) Private Limited
418
Country of
Incorporation
Proportion of
Ownership Interest
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
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
13.73%
13.70%
13.70%
13.73%
13.70%
13.70%
13.70%
13.70%
13.70%
26.86%
13.70%
16.11%
15.39%
13.70%
13.70%
13.70%
13.70%
13.70%
13.70%
13.70%
13.70%
13.70%
13.70%
13.76%
13.70%
13.70%
13.70%
13.70%
13.70%
13.70%
13.70%
16.52%
26.86%
13.70%
13.70%
20.28%
13.70%
25.56%
13.70%
13.70%
13.70%
13.70%
13.70%
13.70%
13.70%
24.22%
41.80%
50.37%
36.70%
27.99%
36.70%
36.70%
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Sr.
No.
Name of the Enterprise
103 Hathway CCN Multinet Private Limited
104 Hathway Channel 5 Cable & Datacom Private Limited
105 Hathway Dattatray Cable Network Private Limited
106 Hathway Digital Saharanpur Cable & Datacom Private Limited
107 Hathway ICE Television Private Limited
108 Hathway Latur MCN Cable & Datacom Private Limited
109 Hathway MCN Private Limited
110 Hathway Palampur Cable Network Private Limited
111 Hathway Prime Cable & Datacom Private Limited
112 Hathway Sai Star Cable & Datacom Private Limited
113 Hathway Sonali OM Crystal Cable Private Limited
114 Hathway SS Cable & Datacom LLP
115 Hathway VCN Cablenet Private Limited
116 IBN Lokmat News Private Limited
117 Iconix Lifestyle India Private Limited
118 IMG Reliance Limited
119 India Gas Solutions Private Limited
120 Indian Vaccines Corporation Limited
121 Jio Payments Bank Limited
122 Konark IP Dossiers Private Limited
123 Marks and Spencer Reliance India Private Limited
124 Net 9 Online Hathway Private Limited
125 Nomobo Entertainment Private Limited
126 NW18 HSN Holdings PLC
127 Pan Cable Services Private Limited
128 PT Big Tree Entertainment Indonesia
129 Reliance Bally India Private Limited
130 Reliance Europe Limited
131 Reliance Industrial Infrastructure Limited
132 Reliance Paul & Shark Fashions Private Limited
133 Reliance-Grand Vision India Supply Private Limited
134 Reliance-Vision Express Private Limited
135 Rutvi Project Managers Private Limited
136 Ryohin-Keikaku Reliance India Private Limited
137 Shop CJ Network Private Limited
138 SpaceBound Web Labs Private Limited
139 Supreme Tradelinks Private Limited
140 Townscript USA, Inc.
141 TV18 Home Shopping Network Limited
142 Ubona Technologies Private Limited
143 V&B Lifestyle India Private Limited
144 Vaji Communication Private Limited
145 Vay Network Services Private Limited
146 Vizianagar Citi Communications Private Limited
147 Zegna South Asia Private Limited
Country of
Incorporation
Proportion of
Ownership Interest
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Cyprus
India
Indonesia
India
UK
India
India
India
India
India
India
India
India
India
USA
India
India
India
India
India
India
India
36.70%
36.70%
36.70%
36.70%
36.70%
36.70%
36.70%
36.70%
36.70%
36.70%
48.93%
36.70%
18.01%
20.85%
37.78%
50.00%
50.00%
33.33%
70.00%
19.66%
46.26%
35.98%
28.74%
29.77%
23.99%
28.74%
37.78%
50.00%
45.43%
37.78%
47.20%
47.20%
50.00%
37.02%
36.55%
28.74%
46.26%
21.56%
36.55%
36.58%
33.97%
13.70%
39.15%
13.70%
37.02%
419
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 37.
ADDITIONAL INFORMATION, AS REQUIRED UNDER SCHEDULE III TO THE COMPANIES ACT, 2013, OF ENTERPRISES CONSOLIDATED AS
SUBSIDIARY / ASSOCIATES / JOINT VENTURES
Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
104.70 4,05,321.94
88.27
35,162.52
101.55
59,673.99
96.18
94,836.51
(0.00)
(0.00)
0.10
0.02
0.00
(0.00)
0.00
(0.00)
(0.00)
0.00
(0.00)
0.00
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.10
0.01
0.00
(0.00)
0.00
0.02
(0.00)
0.00
-
0.01
0.00
(0.00)
(0.00)
(0.00)
0.00
0.00
0.00
0.02
0.00
(0.00)
0.00
(0.00)
(0.00)
(0.15)
(0.48)
382.98
75.49
0.06
(0.03)
0.21
(0.31)
(0.03)
0.39
(1.34)
0.03
0.53
(1.64)
(0.28)
(0.16)
(1.32)
(2.00)
382.98
20.14
3.39
(0.21)
1.02
60.34
(0.82)
0.46
-
56.08
0.03
(0.79)
(0.78)
(0.22)
1.92
1.92
0.52
61.69
10.63
(0.09)
12.19
(3.65)
(3.78)
(0.00)
-
(0.00)
0.02
-
-
-
-
(0.00)
0.00
-
-
0.00
-
-
0.00
-
-
(0.00)
0.00
0.00
-
-
0.00
0.00
(0.00)
(0.00)
(0.01)
-
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
0.00
(0.00)
-
0.00
(0.00)
0.00
(0.01)
-
(0.01)
7.47
-
-
-
-
(0.01)
0.08
-
-
0.02
-
-
0.22
-
-
(0.00)
1.88
1.13
-
-
0.70
0.04
(0.20)
(0.02)
(2.86)
-
(0.24)
(0.05)
(0.03)
(0.63)
0.37
(0.18)
0.52
(0.46)
-
0.05
(0.03)
0.22
-
-
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00
-
-
-
-
-
-
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.01)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.03
-
-
-
-
-
-
-
(0.08)
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
-
(0.00)
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
(0.01)
-
(0.01)
7.46
-
-
-
-
(0.01)
0.08
-
-
0.02
-
-
0.22
-
-
(0.00)
1.91
1.13
-
-
0.70
0.04
(0.20)
(0.02)
(2.94)
-
(0.24)
(0.05)
(0.03)
(0.63)
0.37
(0.18)
0.52
(0.46)
-
0.05
(0.03)
0.22
Name of the Enterprise
PARENT
Reliance Industries Limited
SUBSIDIARIES
Indian
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
ABC Cable Network Private Limited
Adhunik Cable Network Private Limited
Adventure Marketing Private Limited
AETN18 Media Private Limited
Ambika DEN Cable Network Private Limited
Amogh Broad Band Services Private Limited
Angel Cable Network Private Limited
Antique Communications Private Limited
Augment Cable Network Private Limited
Bali Den Cable Network Private Limited
Bee Network and Communication Private Limited
Bhadohi DEN Entertainment Private Limited
Big Den Entertainment Private Limited
Binary Technology Transfers Private Limited
Blossom Entertainment Private Limited
Cab-i-Net Communications Private Limited
Channels India Network Private Limited
Chennai Cable Vision Network Private Limited
Colorful Media Private Limited
Colosceum Media Private Limited
Crystal Vision Media Private Limited
Den A.F. Communication Private Limited
Den Aman Entertainment Private Limited
DEN Ambey Cable Networks Private Limited
Den Ashu Cable Private Limited
DEN BCN Suncity Network Private Limited
Den Bindra Network Private Limited
Den Broadband Private Limited
Den Budaun Cable Network Private Limited
Den Citi Channel Private Limited
Den Classic Cable TV Services Private Limited
DEN Crystal Vision Network Private Limited
Den Digital Cable Network Private Limited
Den Discovery Digital Network Private Limited
Den Elgee Cable Vision Private Limited
Den Enjoy Cable Networks Private Limited
Den Enjoy Navaratan Network Private Limited
DEN Enjoy SBNM Cable Network Private Limited
Den F K Cable TV Network Private Limited
Den Faction Communication System Private Limited
Den Fateh Marketing Private Limited
420
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Name of the Enterprise
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
85
86
87
Den Futuristic Cable Networks Private Limited
DEN Harsh Mann Cable Network Private Limited
Den Jai Ambey Vision Cable Private Limited
Den Kashi Cable Network Private Limited
Den Kattakada Telecasting and Cable Services
Private Limited
DEN Krishna Cable TV Network Private Limited
Den Maa Sharda Vision Cable Networks Private Limited
Den Mahendra Satellite Private Limited
Den Malabar Cable Vision Private Limited
DEN Malayalam Telenet Private Limited
Den MCN Cable Network Private Limited
Den Mod Max Cable Network Private Limited
DEN MTN Star Vision Networks Private Limited
Den Nashik City Cable Network Private Limited
Den Networks Limited
DEN Patel Entertainment Network Private Limited
DEN Pawan Cable Network Private Limited
Den Pradeep Cable Network Private Limited
DEN Prayag Cable Networks Private Limited
Den Premium Multilink Cable Network Private Limited
Den Prince Network Private Limited
Den Radiant Satelite Cable Network Private Limited
Den Rajkot City Communication Private Limited
Den Sahyog Cable Network Private Limited
Den Sariga Communications Private Limited
Den Satellite Cable TV Network Private Limited
Den Saya Channel Network Private Limited
Den Steel City Cable Network Private Limited
DEN STN Television Network Private Limited
Den Supreme Satellite Vision Private Limited
DEN Varun Cable Network Private Limited
DEN VM Magic Entertainment Private Limited
Den-Manoranjan Satellite Private Limited
Desire Cable Network Private Limited
Devine Cable Network Private Limited
Digital Media Distribution Trust
Disk Cable Network Private Limited
Divya Drishti Den Cable Network Private Limited
Drashti Cable Network Private Limited
Dronagiri Bokadvira East Infra Limited
Dronagiri Bokadvira North Infra Limited
Dronagiri Bokadvira South Infra Limited
Dronagiri Bokadvira West Infra Limited
Dronagiri Dongri East Infra Limited
Dronagiri Dongri North Infra Limited
Dronagiri Dongri South Infra Limited
Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
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)
0.68
(0.00)
0.00
(0.00)
(0.00)
0.00
(0.00)
0.00
0.00
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.00
0.00
(0.00)
0.00
(0.00)
(0.00)
1.78
0.00
(0.00)
(0.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
52.52
(1.22)
(0.48)
(2.95)
(2.44)
3.14
1.04
0.02
(0.57)
(1.00)
(3.84)
(0.17)
(0.03)
(1.25)
2,633.47
(0.43)
0.35
(0.86)
(0.38)
3.15
(0.93)
0.29
1.33
(0.93)
(0.37)
(2.34)
0.91
(0.85)
(0.47)
1.75
0.09
(0.09)
10.25
(0.42)
(0.07)
6,887.86
0.80
(0.05)
(1.53)
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.00
(0.00)
-
(0.00)
0.00
(0.00)
(0.00)
0.00
0.00
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.01
(0.00)
0.00
-
0.00
0.01
-
0.00
(0.00)
0.00
(0.00)
-
0.00
(0.00)
-
0.00
(0.00)
-
0.01
-
-
(0.00)
-
-
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
1.07
(0.06)
-
(0.08)
0.05
(0.16)
(0.16)
0.05
0.02
(0.10)
(0.01)
0.01
(0.08)
(0.72)
3.87
(0.08)
0.03
-
0.02
2.24
-
0.01
(1.87)
0.03
(0.10)
-
0.10
(0.02)
-
0.11
(0.01)
-
4.52
-
-
(0.00)
-
-
0.07
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.60)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00
(0.00)
-
(0.00)
0.00
(0.00)
(0.00)
0.00
0.00
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.00
(0.00)
0.00
-
0.00
0.00
-
0.00
(0.00)
0.00
(0.00)
-
0.00
(0.00)
-
0.00
(0.00)
-
0.00
-
-
(0.00)
-
-
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
1.07
(0.06)
-
(0.08)
0.05
(0.16)
(0.16)
0.05
0.02
(0.10)
(0.01)
0.01
(0.08)
(0.72)
3.27
(0.08)
0.03
-
0.02
2.24
-
0.01
(1.87)
0.03
(0.10)
-
0.10
(0.02)
-
0.11
(0.01)
-
4.52
-
-
(0.00)
-
-
0.07
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
421
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.02
0.00
(0.00)
0.01
0.00
(0.00)
(0.00)
(0.00)
(0.00)
0.03
0.01
0.04
0.00
0.02
(0.00)
0.00
0.00
(0.00)
0.00
1.11
(0.00)
(0.05)
0.00
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
94.05
2.67
(0.02)
20.53
0.93
(0.81)
(1.36)
(0.87)
(7.38)
102.57
33.22
172.86
0.31
77.41
(0.19)
13.27
0.60
(3.85)
3.19
4,302.05
(0.43)
(209.59)
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)
0.02
(0.00)
-
0.00
(0.00)
(0.00)
-
(0.00)
(0.00)
(0.04)
0.02
0.01
0.00
0.04
-
0.01
(0.01)
(0.00)
0.00
0.07
0.00
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)
9.15
(0.10)
-
0.94
(0.26)
(0.13)
-
(0.13)
(0.47)
(14.73)
9.68
3.55
0.01
14.67
-
4.37
(3.00)
(0.06)
0.03
29.81
0.00
2.89
0.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
-
-
-
-
-
-
-
-
0.00
0.00
(0.00)
-
0.00
-
0.00
0.00
(0.00)
-
0.00
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.17)
-
-
-
-
-
-
-
-
0.49
0.16
(0.28)
-
0.06
-
0.01
0.01
(0.00)
-
0.46
-
(0.24)
-
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.01
(0.00)
-
0.00
(0.00)
(0.00)
-
(0.00)
(0.00)
(0.01)
0.01
0.00
0.00
0.01
-
0.00
(0.00)
(0.00)
0.00
0.03
0.00
0.00
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
8.98
(0.10)
-
0.94
(0.26)
(0.13)
-
(0.13)
(0.47)
(14.24)
9.84
3.27
0.01
14.73
-
4.38
(2.99)
(0.06)
0.03
30.27
0.00
2.65
0.00
Name of the Enterprise
Dronagiri Dongri West Infra Limited
Dronagiri Funde East Infra Limited
Dronagiri Funde North Infra Limited
Dronagiri Funde South Infra Limited
Dronagiri Funde West Infra Limited
Dronagiri Navghar East Infra Limited
Dronagiri Navghar North First Infra Limited
Dronagiri Navghar North Infra Limited
Dronagiri Navghar North Second Infra Limited
Dronagiri Navghar South First Infra Limited
Dronagiri Navghar South Infra Limited
Dronagiri Navghar South Second Infra Limited
88
89
90
91
92
93
94
95
96
97
98
99
100 Dronagiri Navghar West Infra Limited
101 Dronagiri Pagote East Infra Limited
102 Dronagiri Pagote North First Infra Limited
103 Dronagiri Pagote North Infra Limited
104 Dronagiri Pagote North Second Infra Limited
105 Dronagiri Pagote South First Infra Limited
106 Dronagiri Pagote South Infra Limited
107 Dronagiri Pagote West Infra Limited
108 Dronagiri Panje East Infra Limited
109 Dronagiri Panje North Infra Limited
110 Dronagiri Panje South Infra Limited
111 Dronagiri Panje West Infra Limited
112 e-Eighteen.com Limited
113 Ekta Entertainment Network Private Limited
114 Elite Cable Network Private Limited
115 Eminent Cable Network Private Limited
116 Fab Den Network Private Limited
117 Fortune (Baroda) Network Private Limited
118 Fun Cable Network Private Limited
119 Galaxy Den Media & Entertainment Private Limited
120 Gemini Cable Network Private Limited
121 Genesis Colors Limited
122 Genesis La Mode Private Limited
123 Genesis Luxury Fashion Private Limited
124 GLB Body Care Private Limited
125 GLF Lifestyle Brands Private Limited
126 Glimpse Communications Private Limited
127 GML India Fashion Private Limited
128 Greycells18 Media Limited
129 Hathway Bhawani Cabletel & Datacom Limited
130 Hathway Broadband Private Limited
131 Hathway Cable and Datacom Limited
132 Hathway Cnet Private Limited
133 Hathway Digital Private Limited
134 Hathway Enjoy Cable Network Private Limited
422
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Name of the Enterprise
135 Hathway Gwalior Cable & Datacom Private Limited
136 Hathway Internet Satellite Private Limited
137 Hathway JMD Farukhabad Cable Network Private Limited
138 Hathway Kokan Crystal Cable Network Private Limited
139 Hathway Krishna Cable Private Limited
140 Hathway Mantra Cable & Datacom Private Limited
141 Hathway Media Vision Private Limited
142 Hathway Mysore Cable Network Private Limited
143 Hathway Nashik Cable Network Private Limited
144 Hathway New Concept Cable & Datacom Private Limited
145 Hathway Software Developers Private Limited
146 Hathway Space Vision Cabletel Private Limited
147 Hathway United Cables Private Limited
148 Ideal Cables Private Limited
149 Independent Media Trust
150 IndiaCast Media Distribution Private Limited
151 Indiavidual Learning Private Limited
152 Indiawin Sports Private Limited
153 Indradhanush Cable Network Private Limited
154 Infomedia Press Limited
155 ITV Interactive Media Private Limited
156 Jhankar Cable Network Private Limited
157 Jio Cable and Broadband Holdings Private Limited
158 Jio Content Distribution Holdings Private Limited
159 Jio Digital Cableco Private Limited
160 Jio Digital Distribution Holdings Private Limited
161 Jio Futuristic Digital Holdings Private Limited
162 Jio Information Solutions Limited
163 Jio Infrastructure Management Services Limited
164 Jio Internet Distribution Holdings Private Limited
165 Jio Television Distribution Holdings Private Limited
166 Kalamboli East Infra Limited
167 Kalamboli North First Infra Limited
168 Kalamboli North Infra Limited
169 Kalamboli North Second Infra Limited
170 Kalamboli North Third Infra Limited
171 Kalamboli South First Infra Limited
172 Kalamboli South Infra Limited
173 Kalamboli West Infra Limited
174 Kanhatech Solutions Limited
175 Kishna DEN Cable Networks Private Limited
176 Liberty Media Vision Private Limited
177 Libra Cable Network Private Limited
178 M Entertainments Private Limited
179 Mahadev Den Cable Network Private Limited
180 Mahavir Den Entertainment Private Limited
181 Maitri Cable Network Private Limited
Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.01)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.87
0.01
0.03
0.08
(0.00)
(0.01)
(0.00)
(0.00)
0.19
0.64
0.00
0.16
0.38
(0.00)
(0.00)
0.25
0.16
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.02
(0.00)
(0.00)
0.00
0.00
(0.00)
0.00
(0.00)
(0.58)
(1.63)
0.00
(1.19)
(13.88)
(18.71)
(0.08)
(19.38)
(10.40)
(0.84)
(12.60)
(1.04)
(0.16)
(0.78)
3,365.60
21.82
99.58
295.93
(1.67)
(37.73)
(0.42)
(1.14)
725.47
2,474.09
0.01
612.89
1,469.14
(0.01)
(0.02)
972.61
630.47
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
74.81
(0.55)
(2.27)
5.20
0.13
(2.14)
5.89
(0.26)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
(0.00)
0.00
0.00
-
(0.00)
0.00
(0.00)
0.00
(0.00)
0.23
-
(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)
0.01
-
0.00
(0.00)
0.00
(0.00)
0.00
0.00
0.00
(0.00)
0.00
(0.70)
0.22
(0.20)
0.00
(0.40)
(0.03)
0.02
0.02
-
(0.00)
0.00
(0.01)
0.11
(1.50)
91.14
-
(3.79)
-
(0.01)
(0.40)
(0.78)
(0.00)
(0.40)
(0.68)
(0.02)
(0.01)
(0.49)
(0.40)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
3.97
-
0.00
(0.35)
0.01
(0.24)
0.45
0.04
-
-
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
0.00
(0.00)
0.00
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00
-
-
-
-
-
-
-
-
-
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
0.05
(0.06)
0.02
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00
-
-
-
-
-
-
-
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
(0.00)
0.00
0.00
-
(0.00)
0.00
(0.00)
0.00
(0.00)
0.09
-
(0.00)
-
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
-
0.00
(0.00)
0.00
(0.00)
0.00
0.00
0.00
(0.00)
0.00
(0.70)
0.22
(0.20)
0.00
(0.40)
(0.03)
0.02
0.02
-
(0.00)
0.00
(0.01)
0.16
(1.56)
91.16
-
(3.79)
-
(0.01)
(0.40)
(0.78)
(0.00)
(0.40)
(0.68)
(0.02)
(0.01)
(0.49)
(0.40)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
3.97
-
0.00
(0.35)
0.01
(0.24)
0.45
0.04
423
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
0.01
(0.00)
0.00
1.09
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.44
(0.00)
0.00
2.65
(0.00)
0.03
0.00
0.10
0.11
0.24
0.72
0.12
0.67
(0.01)
0.07
0.03
1.78
4.82
0.99
0.28
2.81
0.03
0.19
0.00
10.02
0.00
0.06
10.44
0.02
0.02
0.02
0.00
0.26
0.05
0.64
0.66
31.30
(0.31)
2.25
4,219.65
0.54
(0.28)
(2.29)
(0.51)
(0.12)
(0.09)
(0.72)
1,701.65
(0.01)
6.24
10,259.98
(4.23)
118.33
0.10
383.38
414.09
913.49
2,780.06
460.21
2,604.95
(39.42)
277.13
118.01
6,887.90
18,673.07
3,841.27
1,096.55
10,871.24
102.16
752.00
0.01
38,786.92
12.57
242.97
40,399.92
83.43
86.40
71.64
0.05
1,015.55
210.08
2,478.89
2,538.61
0.00
(0.00)
(0.00)
(0.03)
(0.00)
-
0.00
(0.00)
-
(0.00)
-
(1.59)
(0.00)
(0.01)
0.00
-
0.05
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.10)
(0.00)
(0.05)
0.00
(0.00)
(0.01)
0.96
0.01
(0.00)
(0.00)
0.01
0.02
(0.00)
0.05
(0.02)
(0.01)
7.44
(0.00)
(0.02)
0.01
(0.00)
(0.01)
0.21
(0.00)
0.00
1.96
(0.01)
(0.05)
(10.79)
(0.40)
-
0.09
(0.03)
-
(0.00)
-
(634.65)
(0.00)
(2.21)
0.01
-
20.57
(0.32)
0.00
(0.00)
(0.51)
(0.12)
(40.51)
(0.24)
(19.62)
0.72
(0.03)
(2.99)
381.12
5.01
(0.12)
(1.09)
2.26
9.35
(0.00)
20.21
(8.84)
(4.26)
2,964.43
(1.22)
(7.61)
2.27
(0.00)
(4.59)
81.73
(0.36)
1.05
-
-
-
(0.00)
-
-
-
-
-
-
-
(0.02)
-
-
-
-
0.00
-
-
-
-
-
0.00
-
0.00
(0.00)
-
-
(0.00)
-
-
-
0.00
0.00
-
0.78
-
(0.00)
0.01
-
-
0.00
-
0.00
0.01
(0.01)
-
-
-
-
(0.06)
-
-
-
-
-
-
-
(10.46)
-
-
-
-
0.17
-
-
-
-
-
0.25
-
0.01
(0.08)
-
-
(0.12)
-
-
-
0.01
0.50
-
456.33
-
(0.11)
3.85
-
-
0.11
-
0.01
4.90
(7.49)
-
0.00
(0.00)
(0.00)
(0.01)
(0.00)
-
0.00
(0.00)
-
(0.00)
-
(0.65)
(0.00)
(0.00)
0.00
-
0.02
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.04)
(0.00)
(0.02)
0.00
(0.00)
(0.00)
0.39
0.01
(0.00)
(0.00)
0.00
0.01
(0.00)
0.48
(0.01)
(0.00)
3.01
(0.00)
(0.01)
0.00
(0.00)
(0.00)
0.09
(0.01)
0.00
1.96
(0.01)
(0.05)
(10.85)
(0.40)
-
0.09
(0.03)
-
(0.00)
-
(645.11)
(0.00)
(2.21)
0.01
-
20.74
(0.32)
0.00
(0.00)
(0.51)
(0.12)
(40.26)
(0.24)
(19.61)
0.64
(0.03)
(2.99)
381.00
5.01
(0.12)
(1.09)
2.27
9.85
(0.00)
476.54
(8.84)
(4.37)
2,968.28
(1.22)
(7.61)
2.38
(0.00)
(4.58)
86.63
(7.85)
1.05
Name of the Enterprise
182 Mansion Cable Network Private Limited
183 Marble Cable Network Private Limited
184 Meerut Cable Network Private Limited
185 Model Economic Township Limited
186 Moneycontrol Dot Com India Limited
187 Mountain Cable Network Private Limited
188 Multi Channel Cable Network Private Limited
189 Multi Star Cable Network Private Limited
190 Multitrack Cable Network Private Limited
191 Naroda Power Private Limited
192 Nectar Entertainment Private Limited
193 Network18 Media & Investments Limited
194 Network18 Media Trust
195 New Emerging World of Journalism Private Limited
196 Petroleum Trust
197 Radiant Satellite (India) Private Limited
198 Radisys India Private Limited
199 RB Holdings Private Limited
200 RB Media Holdings Private Limited
201 RB Mediasoft Private Limited
202 Reliance Ambit Trade Private Limited
203 Reliance Aromatics and Petrochemicals Limited
204 Reliance Brands Limited
205 Reliance Chemicals Limited
206 Reliance Clothing India Private Limited
207 Reliance Commercial Dealers Limited
208 Reliance Comtrade Private Limited
209 Reliance Content Distribution Limited
210 Reliance Corporate IT Park Limited
211 Reliance Eminent Trading & Commercial Private Limited
212 Reliance Energy and Project Development Limited
213 Reliance Energy Generation and Distribution Limited
214 Reliance Gas Lifestyle India Private Limited
215 Reliance Gas Pipelines Limited
216 Reliance-GrandOptical Private Limited
217 Reliance Industrial Investments and Holdings Limited
218 Reliance Innovative Building Solutions Private Limited
219 Reliance Jio Digital Services Limited
220 Reliance Jio Infocomm Limited
221 Reliance Jio Media Limited
222 Reliance Jio Messaging Services Limited
223 Reliance Lifestyle Holdings Limited
224 Reliance Navi Mumbai Infra Limited
225 Reliance Payment Solutions Limited
226 Reliance Petro Marketing Limited
227 Reliance Polyolefins Limited
228 Reliance Progressive Traders Private Limited
424
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Name of the Enterprise
229 Reliance Prolific Commercial Private Limited
230 Reliance Prolific Traders Private Limited
231 Reliance Retail Finance Limited
232 Reliance Retail Insurance Broking Limited
233 Reliance Retail Limited
234 Reliance Retail Ventures Limited
235 Reliance Sibur Elastomers Private Limited
236 Reliance SMSL Limited
237 Reliance Strategic Investments Limited
238 Reliance Universal Enterprises Limited
239 Reliance Universal Traders Private Limited
240 Reliance Vantage Retail Limited
241 Reliance Ventures Limited
242 Reliance World Trade Private Limited
243 Rhea Retail Private Limited
244 Rose Entertainment Private Limited
245 RRB Mediasoft Private Limited
246 Saavn Media Private Limited
247 Sanmati DEN Cable TV Network Private Limited
248 Sanmati Entertainment Private Limited
249 Shree Sidhivinayak Cable Network Private Limited
250 Silverline Television Network Private Limited
251 Sree Gokulam Starnet Communication Private Limited
252 Srishti DEN Networks Private Limited
253 Surela Investment and Trading Limited
254 The Indian Film Combine Private Limited
255 Trident Entertainment Private Limited
256 TV18 Broadcast Limited
257 Ulwe East Infra Limited
258 Ulwe North Infra Limited
259 Ulwe South Infra Limited
260 Ulwe Waterfront East Infra Limited
261 Ulwe Waterfront North Infra Limited
262 Ulwe Waterfront South Infra Limited
263 Ulwe Waterfront West Infra Limited
264 Ulwe West Infra Limited
265 United Cable Network (Digital) Private Limited
266 UTN Cable Communication Private Limited
267 VBS Digital Distribution Network Private Limited
268 Viacom18 Media Private Limited
269 Victor Cable TV Network Private Limited
270 Vision India Network Private Limited
271 Watermark Infratech Private Limited
272 Win Cable & Datacom Private Limited
Foreign
1
2
Affinity Names Inc.
Aurora Algae Inc.
Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
0.16
0.73
0.03
0.00
3.25
1.98
0.43
(0.00)
0.44
0.88
0.07
0.04
0.98
1.59
(0.01)
0.00
0.08
1.65
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
0.57
(0.00)
0.71
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0.01)
0.00
0.34
(0.00)
(0.00)
0.10
(0.01)
0.00
0.00
631.67
2,817.39
101.84
17.73
12,587.41
7,648.12
1,648.72
(10.65)
1,707.00
3,416.59
265.86
157.26
3,775.56
6,163.61
(35.86)
1.02
293.87
6,389.84
(0.97)
(0.53)
(1.56)
0.89
(1.64)
(1.17)
(0.49)
2,218.15
(1.15)
2,763.39
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
(0.22)
(22.09)
0.91
1,332.52
(2.10)
(2.06)
383.00
(19.70)
1.70
14.06
(0.00)
0.00
(0.00)
0.01
7.88
0.00
(0.01)
0.00
(1.01)
(0.00)
0.00
0.01
0.20
(0.00)
(0.06)
(0.00)
(0.00)
(0.00)
(0.00)
-
0.00
0.00
0.00
(0.00)
0.00
(0.00)
-
0.21
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
0.00
0.20
-
-
0.00
(0.00)
0.00
(0.00)
(0.85)
0.43
(0.12)
3.59
3,138.26
0.87
(2.39)
0.94
(401.68)
(0.38)
1.19
2.56
77.90
(0.82)
(22.44)
(0.01)
(0.00)
(1.67)
(0.02)
-
0.03
0.28
0.03
(0.03)
0.05
(0.60)
-
85.05
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.06)
0.11
0.21
81.01
-
-
0.00
(0.00)
1.66
(0.83)
-
-
-
0.00
0.00
-
-
(0.00)
-
-
-
-
-
-
0.00
-
-
(0.00)
-
-
-
-
-
-
-
-
-
(0.01)
-
-
-
-
-
-
-
-
-
-
-
(0.00)
-
-
-
-
-
-
-
-
-
0.02
1.49
-
-
(0.65)
-
-
-
-
-
-
0.59
-
-
(0.13)
-
-
-
-
-
-
-
-
-
(8.66)
-
-
-
-
-
-
-
-
-
-
-
(0.02)
-
-
-
-
-
-
(0.00)
0.00
(0.00)
0.00
3.18
0.00
(0.00)
0.00
(0.41)
(0.00)
0.00
0.00
0.08
(0.00)
(0.02)
(0.00)
(0.00)
(0.00)
(0.00)
-
0.00
0.00
0.00
(0.00)
0.00
(0.00)
-
0.08
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
0.00
0.08
-
-
0.00
(0.00)
0.00
(0.00)
(0.85)
0.43
(0.12)
3.61
3,139.75
0.87
(2.39)
0.29
(401.68)
(0.38)
1.19
2.56
77.90
(0.82)
(21.85)
(0.01)
(0.00)
(1.80)
(0.02)
-
0.03
0.28
0.03
(0.03)
0.05
(0.60)
-
76.39
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.06)
0.11
0.21
80.99
-
-
0.00
(0.00)
1.66
(0.83)
425
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
0.06
0.06
0.06
0.06
0.06
0.06
0.00
0.00
0.00
0.04
0.00
0.01
0.00
0.00
(0.06)
0.00
0.03
0.00
0.00
0.00
0.00
(0.00)
0.00
3.37
0.00
1.29
1.29
0.28
0.43
0.06
0.01
(5.31)
0.29
0.00
0.01
0.23
0.01
0.07
(0.01)
1.82
0.22
0.08
0.21
0.03
0.02
(0.00)
(0.00)
239.90
227.04
222.47
236.16
220.19
221.99
7.10
3.80
0.40
163.11
8.68
21.70
0.07
1.74
(229.67)
4.16
101.36
0.36
1.32
0.92
14.29
(6.58)
7.94
13,038.09
0.07
4,990.53
4,992.12
1,095.15
1,667.56
239.99
35.70
(20,547.33)
1,139.28
0.79
51.14
899.11
55.30
257.97
(32.06)
7,050.90
866.05
321.10
828.78
122.68
83.70
(4.15)
(8.46)
0.05
0.05
0.04
0.04
0.05
0.05
0.00
0.00
0.00
0.01
0.00
0.00
0.00
(0.00)
(0.56)
0.00
0.00
0.00
(0.00)
0.00
0.00
(0.00)
0.00
8.24
-
(3.99)
(11.11)
(0.00)
(0.05)
0.48
0.00
(21.35)
0.19
0.00
0.01
0.03
0.00
0.00
(0.01)
(1.28)
0.78
(0.00)
0.06
(0.00)
(0.12)
0.00
0.00
18.12
18.33
17.57
17.77
17.98
18.19
0.88
0.61
0.00
3.35
0.27
(1.67)
0.00
(0.21)
(222.94)
0.79
0.12
0.13
(0.29)
0.13
0.58
(0.35)
0.37
3,281.94
-
(1,588.96)
(4,427.70)
(0.10)
(19.84)
189.33
1.44
(8,503.45)
75.41
0.12
3.98
11.42
1.18
1.39
(4.82)
(509.01)
312.17
(0.59)
23.32
(0.00)
(47.96)
0.04
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
0.39
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00
(0.00)
(1.25)
(1.66)
(1.32)
(1.38)
(1.80)
(2.22)
-
-
-
-
0.00
(1.47)
0.00
-
1.19
-
0.00
-
-
-
-
-
0.00
227.78
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.08
(0.50)
0.02
0.02
0.02
0.02
0.02
0.02
0.00
0.00
0.00
0.00
0.00
(0.00)
0.00
(0.00)
(0.22)
0.00
0.00
0.00
(0.00)
0.00
0.00
(0.00)
0.00
3.56
-
(1.61)
(4.49)
(0.00)
(0.02)
0.19
0.00
(8.62)
0.08
0.00
0.00
0.01
0.00
0.00
(0.00)
(0.52)
0.32
(0.00)
0.02
(0.00)
(0.05)
0.00
(0.00)
16.87
16.67
16.25
16.39
16.18
15.97
0.88
0.61
0.00
3.35
0.27
(3.14)
0.00
(0.21)
(221.75)
0.79
0.12
0.13
(0.29)
0.13
0.58
(0.35)
0.37
3,509.72
-
(1,588.96)
(4,427.70)
(0.10)
(19.84)
189.33
1.44
(8,503.45)
75.41
0.12
3.98
11.42
1.18
1.39
(4.82)
(509.01)
312.17
(0.59)
23.32
(0.00)
(47.96)
0.12
(0.49)
Name of the Enterprise
Ethane Crystal LLC
Ethane Emerald LLC
Ethane Opal LLC
Ethane Pearl LLC
Ethane Sapphire LLC
Ethane Topaz LLC
Indiacast UK Limited
Indiacast US Limited
Jio Estonia OÜ
3
4
5
6
7
8
9
10
11
12 Mindex 1 Limited
Radisys B.V.
13
Radisys Canada Inc.
14
Radisys Cayman Limited
15
Radisys Convedia (Ireland) Limited
16
Radisys Corporation
17
Radisys GmbH
18
Radisys International LLC
19
Radisys International Singapore Pte. Ltd.
20
Radisys Poland sp. z o.o
21
Radisys Spain S.L.U.
22
Radisys Systems Equipment Trading (Shanghai) Co. Ltd.
23
Radisys Technologies (Shenzhen) Co. Ltd.
24
Radisys UK Limited
25
Recron (Malaysia) Sdn. Bhd.
26
Reliance Eagleford Upstream GP LLC
27
Reliance Eagleford Upstream Holding LP
28
Reliance Eagleford Upstream LLC
29
Reliance Ethane Holding Pte Limited
30
Reliance Exploration & Production DMCC
31
Reliance Global Energy Services (Singapore) Pte Ltd.
32
Reliance Global Energy Services Limited
33
Reliance Holding USA, Inc.
34
Reliance Industries (Middle East) DMCC
35
Reliance Industries Uruguay Petroquímica S.A.
36
Reliance Jio Global Resources LLC
37
Reliance Jio Infocomm Pte Limited
38
Reliance Jio Infocomm UK Limited
39
Reliance Jio Infocomm USA, Inc.
40
Reliance Marcellus II LLC
41
Reliance Marcellus LLC
42
RIL USA, Inc.
43
Roptonal Limited
44
RP Chemicals (Malaysia) Sdn. Bhd.
45
Saavn Inc.
46
Saavn LLC
47
Viacom18 Media (UK) Limited
48
Viacom18 US Inc.
49
426
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Name of the Enterprise
Non Controlling Interest In all Subsidiaries
ASSOCIATES (INVESTMENT 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
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
Big Tree Entertainment Private Limited
CCN DEN Network Private Limited
Clayfin Technologies Private Limited
DEN ABC Cable Network Ambarnath Private Limited
DEN ADN Network Private Limited
DEN New Broad Communication Private Limited
Den Satellite Network Private Limited
DL GTPL Broadband Private Limited
DL GTPL Cabnet 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 *
GLF Lifestyle Brands Private Limited *
GML India Fashion Private Limited *
Go2Space Event Management Private Limited
GTPL Abhilash Communication Private Limited
GTPL-Ahmedabad Cable Network Private Limited
GTPL Anjali Cable Network Private Limited
GTPL Bansidhar Telelink Private Limited
GTPL Bariya Television Network
GTPL Bawa Cable
GTPL Blue Bell Network Private Limited
GTPL Broadband Private Limited
GTPL Chaudhary Vision
GTPL City Channel Private Limited
GTPL Crazy Network
GTPL Dahod Television Network Private Limited
GTPL DCPL Private Limited
GTPL Deesha Cable Net Private Limited
GTPL Hariom World Vision
GTPL Hathway Limited
GTPL Henish Cable Vision
GTPL Insight Channel Network Private Limited
GTPL Jay Santoshima Network Private Limited
GTPL Jaydeep Cable
GTPL Junagadh Network Private Limited
Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
(2.14)
(8,280.34)
(0.63)
(249.21)
0.01
8.00
(0.24)
(241.21)
0.10
-
0.01
0.00
0.00
(0.00)
0.02
0.00
0.00
0.00
0.09
0.00
(0.00)
0.00
-
-
0.00
-
-
-
0.00
0.00
(0.00)
0.00
0.00
0.00
0.00
(0.00)
0.01
0.00
(0.00)
0.00
0.00
0.00
0.00
0.00
0.10
0.00
0.00
(0.00)
0.00
0.00
374.34
-
22.31
0.44
4.00
(0.39)
64.49
0.02
0.26
0.76
334.84
0.23
(0.41)
0.28
-
-
0.27
-
-
-
0.00
0.64
(0.08)
0.42
0.14
0.02
0.02
(0.50)
23.42
0.07
(0.00)
0.45
0.16
6.18
1.21
0.03
390.72
0.04
0.15
(0.36)
0.02
0.03
(0.08)
-
0.00
0.00
0.00
(0.00)
0.00
0.00
0.00
(0.00)
0.08
(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)
(0.00)
0.00
(0.00)
0.00
(0.00)
0.02
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(32.64)
-
1.52
0.06
0.74
(0.83)
0.26
0.02
0.25
(1.12)
33.44
(2.11)
(3.09)
(0.01)
1.66
(0.04)
0.00
0.00
1.68
0.28
(0.00)
(0.02)
(0.01)
(0.00)
0.03
0.00
(0.00)
(0.00)
(0.35)
0.00
(0.00)
(0.01)
0.00
(0.31)
0.01
(0.00)
6.01
(0.00)
(0.03)
(0.09)
0.00
(0.01)
0.00
-
(0.00)
-
-
-
-
-
-
(0.00)
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
-
-
-
-
-
-
-
(0.00)
-
-
-
-
-
0.32
-
(0.32)
-
-
-
-
-
-
(0.01)
(0.07)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.02)
-
-
-
-
-
-
-
(0.11)
-
-
-
-
-
(0.03)
-
0.00
0.00
0.00
(0.00)
0.00
0.00
0.00
(0.00)
0.03
(0.00)
(0.00)
(0.00)
0.00
(0.00)
0.00
0.00
0.00
0.00
(0.00)
(0.00)
(0.00)
(0.00)
0.00
0.00
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.00
(0.00)
0.00
(0.00)
0.01
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(32.32)
-
1.20
0.06
0.74
(0.83)
0.26
0.02
0.25
(1.13)
33.37
(2.11)
(3.09)
(0.01)
1.66
(0.04)
0.00
0.00
1.68
0.28
(0.00)
(0.02)
(0.01)
(0.00)
0.03
0.00
(0.00)
(0.00)
(0.37)
0.00
(0.00)
(0.01)
0.00
(0.31)
0.01
(0.00)
5.90
(0.00)
(0.03)
(0.09)
0.00
(0.01)
427
* Company was an associate upto 06.09.2018 and became a subsidiary from 07.09.2018.
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Name of the Enterprise
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
GTPL Jyoti Cable
GTPL Kaizen Infonet Private Limited
GTPL KCBPL Broad Band Private Limited
GTPL Khambhat Cable Network
GTPL Khusboo Video Channel
GTPL Kolkata Cable & Broadband Pariseva Limited
GTPL Leo Vision
GTPL Link Network Private Limited
GTPL Lucky Video Cable
GTPL Ma Bhagawati Entertainment Services
GTPL Media Entertainment
GTPL Meghana Distributors Private Limited
GTPL Narmada Cable Services
GTPL Narmada Cyberzone Private Limited
GTPL Parshwa Cable Network Private Limited
GTPL Parth World Vision
GTPL SK Vision
GTPL Sai Vision
GTPL Sai World Channel
GTPL Sanjiv Cable Vision
GTPL-Sharda Cable Network Private Limited
GTPL Shiv Cable
GTPL Shiv Cable
GTPL Shiv Cable Network
GTPL Shiv Cable Vision
GTPL Shiv Network Private Limited
GTPL Shivshakti Network Private Limited
GTPL Shree Shani Cable
GTPL Shreenathji Communication
GTPL SK Network Private Limited
GTPL SMC Network Private Limited
GTPL Solanki Cable Network Private Limited
GTPL Sorath Telelink Private Limited
GTPL Space City Private Limited
GTPL Surat Telelink Private Limited
GTPL Swastik Communication
GTPL Tridev Cable Network
GTPL TV Tiger Private Limited
Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
0.00
0.00
(0.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(0.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(0.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(0.00)
0.00
0.00
0.00
0.14
0.87
(1.07)
0.02
0.02
6.65
0.09
0.36
0.10
0.01
0.03
(1.17)
0.05
0.37
0.11
0.09
0.08
0.02
0.45
0.04
(0.08)
0.02
0.03
0.26
0.07
0.04
0.00
0.03
0.09
0.10
0.04
0.05
0.13
0.35
(0.18)
0.18
0.14
0.42
(0.00)
0.00
(0.00)
(0.00)
0.00
0.00
(0.00)
(0.00)
0.00
(0.00)
0.00
0.00
0.00
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
0.00
(0.00)
0.00
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
0.01
(0.01)
(0.00)
0.00
0.45
(0.00)
(0.04)
0.00
(0.00)
0.00
0.44
0.00
(0.04)
0.00
(0.00)
(0.01)
(0.00)
(0.02)
(0.00)
(0.00)
0.00
(0.00)
(0.02)
(0.00)
(0.01)
(0.00)
(0.00)
0.00
0.00
(0.00)
0.05
(0.07)
(0.00)
0.01
(0.01)
(0.00)
(0.05)
-
-
0.00
-
-
0.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00
-
-
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)
0.01
(0.01)
(0.00)
0.00
0.46
(0.00)
(0.04)
0.00
(0.00)
0.00
0.44
0.00
(0.04)
0.00
(0.00)
(0.01)
(0.00)
(0.02)
(0.00)
(0.00)
0.00
(0.00)
(0.02)
(0.00)
(0.01)
(0.00)
(0.00)
0.00
0.00
(0.00)
0.05
(0.07)
(0.00)
0.01
(0.01)
(0.00)
(0.05)
428
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
Name of the Enterprise
GTPL V&S Cable Private Limited
81
GTPL Vidarbha Telelink Private Limited
82
GTPL Video Badshah Private Limited
83
GTPL Video Vision Private Limited
84
GTPL Vision Services Private Limited
85
GTPL Vraj Cable
86
GTPL VVC Network Private Limited
87
GTPL World View Cable
88
GTPL World Vision
89
GTPL Zigma Vision Private Limited
90
Gujarat Chemical Port Terminal Company Limited
91
Hathway VCN Cablenet Private Limited
92
Indian Vaccines Corporation Limited
93
94
Konark IP Dossiers Private Limited
95 M Entertainments Private Limited *
Nomobo Entertainment Private Limited
96
Pan Cable Services Private Limited
97
Reliance Industrial Infrastructure Limited
98
Shop CJ Network Private Limited
99
100 SpaceBound Web labs Private Limited
101 The Indian Film Combine Private Limited *
102 TV18 Home Shopping Network Limited
103 Vaji Communication Private Limited
104 Vay Network Services Private Limited
105 Vizianagar Citi Communications Private Limited
Foreign
1
2
3
4
5
6
7
8
9
Big Tree Entertainment DMCC
Big Tree Entertainment Lanka Private Limited
Big Tree Entertainment Singapore Pte. Limited
Big Tree Sport & Recreational Events Tickets Selling L.L.C
Bookmyshow Sdn. Bhd.
NW18 HSN Holdings PLC
PT Big Tree Entertainment Indonesia
Reliance Europe Limited
Townscript USA, Inc.
0.00
(0.00)
0.00
0.00
0.00
0.00
(0.00)
0.00
0.00
0.00
0.09
-
0.00
0.00
0.00
(0.00)
-
0.05
0.00
(0.00)
-
0.01
0.00
0.00
(0.00)
0.00
(0.00)
0.01
(0.00)
-
-
(0.00)
0.01
(0.00)
0.03
(1.04)
0.33
0.07
2.16
0.20
(0.01)
0.06
0.06
0.00
329.49
-
0.34
0.43
-
(0.92)
-
188.32
0.29
(0.11)
-
39.82
0.42
0.39
(0.17)
0.19
(0.24)
19.52
(0.14)
-
-
(1.91)
36.93
(0.01)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.00
0.00
0.20
(0.00)
(0.00)
0.00
0.00
(0.00)
-
0.01
(0.03)
(0.00)
0.00
(0.08)
(0.00)
(0.01)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
-
-
(0.01)
0.00
(0.00)
0.00
(0.00)
(0.02)
(0.00)
(0.18)
0.00
(0.01)
(0.00)
0.00
0.03
79.07
(0.00)
(0.51)
0.07
0.00
(0.92)
-
3.54
(11.34)
(0.00)
0.01
(33.44)
(0.02)
(3.88)
0.01
(0.15)
(0.16)
(0.17)
(0.35)
-
-
(4.00)
1.55
(0.01)
-
-
-
-
-
-
-
-
-
-
0.00
-
-
-
-
-
-
0.01
0.00
-
-
0.00
-
-
-
(0.00)
0.00
(0.00)
(0.00)
-
-
0.00
-
-
-
-
-
-
-
-
-
-
-
-
0.00
-
-
-
-
-
-
6.22
0.04
-
-
0.05
-
-
-
(0.01)
0.01
(0.76)
(0.00)
-
-
0.04
-
-
* Company was an associate upto 16.04.2018 and became a subsidiary from 17.04.2018.
0.00
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.00
0.00
0.08
(0.00)
(0.00)
0.00
0.00
(0.00)
-
0.01
(0.01)
(0.00)
0.00
(0.03)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
-
-
(0.00)
0.00
(0.00)
0.00
(0.00)
(0.02)
(0.00)
(0.18)
0.00
(0.01)
(0.00)
0.00
0.03
79.07
(0.00)
(0.51)
0.07
0.00
(0.92)
-
9.76
(11.30)
(0.00)
0.01
(33.39)
(0.02)
(3.88)
0.01
(0.16)
(0.15)
(0.93)
(0.35)
-
-
(3.96)
1.55
(0.01)
429
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. Name of the Enterprise
JOINT VENTURES ( INVESTMENT AS PER THE
EQUITY METHOD)
Indian
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Brooks Brothers India Private Limited
Burberry India Private Limited
Canali India Private Limited
D.E. Shaw India Securities Private Limited
Diesel Fashion India Reliance Private Limited
Football Sports Development Limited
Hathway Bhaskar CCN Multi Entertainment Private Limited
Hathway Bhawani NDS Network Private Limited
Hathway Cable MCN Nanded Private Limited
Hathway CBN Multinet Private Limited
Hathway CCN Entertainment (India) Private Limited
Hathway CCN Multinet Private Limited
Hathway Channel 5 Cable & Datacom Private Limited
Hathway Dattatray Cable Network Private Limited
Hathway Digital Saharanpur Cable & Datacom
Private Limited
Hathway ICE Television Private Limited
Hathway Latur MCN Cable & Datacom Private Limited
Hathway MCN Private Limited
Hathway Palampur Cable Network Private Limited
Hathway Prime Cable & Datacom Private Limited
Hathway Sai Star Cable & Datacom Private Limited
Hathway Sonali OM Crystal Cable Private Limited
Hathway SS Cable & Datacom LLP
IBN Lokmat News Private Limited
Iconix Lifestyle India Private Limited
IMG Reliance Limited
India Gas Solutions Private Limited
Jio Payments Bank Limited
16
17
18
19
20
21
22
23
24
25
26
27
28
29 Marks and Spencer Reliance India Private Limited
30
31
32
33
34
35
36
37
38
39
40
Net 9 Online Hathway Private Limited
Reliance Bally India Private Limited
Reliance Paul & Shark Fashions Private Limited
Reliance-Grand Vision India Supply Private Limited
Reliance-Vision Express Private Limited
Rutvi Project Managers Private Limited
Ryohin-Keikaku Reliance India Private Limited
Supreme Tradelinks Private Limited
Ubona Technologies Private Limited
V&B Lifestyle India Private Limited
Zegna South Asia Private Limited
Net Assets i.e.
Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive Income
Share in
Total Comprehensive
Income
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
As % of
consolidated Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated Total
Comprehensive
Income
Amount
(` in crore)
0.00
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
0.01
0.04
0.00
0.04
0.06
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
13.89
29.37
14.23
1.61
14.40
4.89
-
0.31
0.30
0.72
3.62
6.25
-
-
-
-
-
4.41
0.19
-
10.12
-
-
(10.82)
45.86
149.54
7.92
151.29
240.21
3.05
3.62
5.17
5.64
9.85
1.00
11.59
2.66
5.43
8.16
2.34
0.00
0.01
0.00
0.00
(0.00)
(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)
0.01
0.01
0.02
(0.01)
(0.00)
0.14
(0.00)
0.00
(0.00)
(0.00)
(0.01)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.00
1.19
3.37
0.97
0.10
(1.95)
(2.38)
(0.16)
0.01
0.03
0.28
(0.15)
(0.12)
0.00
0.45
(0.02)
0.00
(0.00)
0.13
(0.01)
0.00
(0.41)
0.82
(0.02)
2.19
3.14
9.62
(3.48)
(1.72)
56.46
(0.00)
0.21
(0.11)
(0.54)
(5.16)
(0.00)
(1.45)
0.02
(1.15)
(0.29)
0.67
0.00
(0.00)
0.00
-
0.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
-
0.00
-
0.00
(0.00)
-
0.00
0.00
-
0.00
-
0.00
-
0.00
0.00
0.00
0.01
(0.00)
0.03
-
0.01
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.03)
-
0.04
-
0.03
(1.43)
-
0.00
0.00
-
0.06
-
0.01
-
0.02
0.01
0.02
0.00
0.00
0.00
0.00
(0.00)
(0.00)
(0.00)
0.00
0.00
0.00
(0.00)
(0.00)
0.00
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
0.00
0.01
(0.00)
(0.00)
0.06
(0.00)
0.00
(0.00)
(0.00)
(0.01)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.00
1.20
3.37
1.00
0.10
(1.94)
(2.38)
(0.16)
0.01
0.03
0.28
(0.15)
(0.12)
0.00
0.45
(0.02)
0.00
(0.00)
0.13
(0.01)
0.00
(0.41)
0.82
(0.02)
2.16
3.14
9.66
(3.48)
(1.69)
55.03
(0.00)
0.21
(0.11)
(0.54)
(5.10)
(0.00)
(1.44)
0.02
(1.13)
(0.28)
0.69
430
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 38. SIGNIFICANT ACQUISITION DURING THE YEAR
During the year, the Group has, directly / through its subsidiaries, acquired a controlling stake of:
•
•
•
•
51.34% in Hathway Cable Datacom Limited (‘Hathway’) for a consideration of ` 2,940 crore. Subsequently, pursuant to the SEBI
regulations, it has acquired, in open offer to shareholders, an additional equity stake of 20.61% in Hathway for a consideration
of ` 1,180 crore.
66.01% in Den Networks Limited (‘Den’) for a consideration of ` 2,289 crore. Subsequently, pursuant to the SEBI regulations, it
has acquired, in open offer to shareholders, an additional equity stake of 12.05% in Den for a consideration ` 417 crore.
71.82% in Saavn Media Private Limited (‘Saavn’) for a consideration of ` 5,429 crore.
83.17% in The Indian Film Combine Limited for a consideration of ` 2,940 crore.
The consideration for the above acquisitions have been settled in cash other than Saavn that has been settled through intangible
assets. Further, the non-controlling interest of ` 3,990 crore for the above acquisitions have been measured at proportionate share of
the acquiree’s identifiable net assets. All assets acquired and liabilities assumed in the above acquisitions have been recorded at fair
value and the resultant goodwill of ` 2,768 crore has been recorded.
The revenue and profit for the above acquisitions has been included in the Consolidated Financial Statements since its
acquisition date.
All other acquisitions are considered to be immaterial.
39. ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE
In March 2019, the Management committed to a plan involving divestment of controlling stake in 6 Very Large Ethane Carrier (VLEC)
subsidiaries within the Petrochemical segment and entered into a binding arrangement with the prospective buyers. Accordingly all
assets and liabilities of these subsidiaries have been classified as Held for Sale.
As at 31st March, 2019, the assets and liabilities have been measured at the lower of their carrying amount and fair value
less cost of sale:
ASSETS
Property, Plant and Equipment
Trade Receivables
Cash and Cash Equivalent
Other Financial Assets
Other Current Assets
Total
LIABILITIES
Borrowing - Non Current
Other Financial Liabilities
Other Current Liabilities
Total
2018-19
4,426
19
74
55
93
4,667
2018-19
2,942
348
9
3,299
(` in crore)
2017-18
-
-
-
-
-
-
(` in crore)
2017-18
-
-
-
-
431
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
40. EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have recommended dividend of ` 6.5 per fully paid up equity share of ` 10/- each, aggregating ` 4,641 crore,
including ` 789 crore dividend distribution tax for the financial year 2018-19, which is based on relevant share capital as on
31st March, 2019. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record
date / book closure.
41. The figures for the corresponding previous year have been regrouped / reclassified wherever necessary, to make them comparable.
42. APPROVAL OF FINANCIAL STATEMENTS
The Consolidated Financial Statements were approved for issue by the Board of Directors on April 18, 2019.
432
NOTES to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19
ANNEXURE “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES / ASSOCIATES / JOINT VENTURES AS PER COMPANIES ACT, 2013
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue from
Operations /
Total Income
Profit Before
Taxation
Provi-
sion for
Taxation
Profit After
Taxation
Other
Compre-
hensive
Income
Total Com-
prehensive
Income
Proposed
Dividend
% of Share-
holding*
(` in crore)
Foreign Currencies in Million
PART “A” : SUBSIDIARIES
Sr.
No.
Name of Subsidiary Company
The date
since which
Subsidiary
was acquired
Reporting
Currency
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
Affinity Names Inc. #
Aurora Algae Inc. #
C–Square Info Solutions Private
Limited**
Dronagiri Bokadvira East Infra
Limited ^
Dronagiri Bokadvira North Infra
Limited ^
Dronagiri Bokadvira South Infra
Limited ^
Dronagiri Bokadvira West Infra
Limited ^
Dronagiri Dongri East Infra Limited ^
Dronagiri Dongri North Infra Limited ^
Dronagiri Dongri South Infra Limited ^
Dronagiri Dongri West Infra Limited ^
Dronagiri Funde East Infra Limited ^
Dronagiri Funde North Infra Limited ^
Dronagiri Funde South Infra Limited ^
Dronagiri Funde West Infra Limited ^
Dronagiri Navghar East Infra Limited ^
Dronagiri Navghar North First Infra
Limited ^
Dronagiri Navghar North Infra
Limited ^
Dronagiri Navghar North Second
Infra Limited ^
Dronagiri Navghar South First Infra
Limited ^
Dronagiri Navghar South Infra
Limited ^
Dronagiri Navghar South Second
Infra Limited ^
Dronagiri Navghar West Infra
Limited ^
Dronagiri Pagote East Infra Limited ^
Dronagiri Pagote North First Infra
Limited ^
Dronagiri Pagote North Infra Limited ^
Dronagiri Pagote North Second Infra
Limited ^
26.03.2012
21.04.2015
01.03.2019
28.01.2019
24.01.2019
24.01.2019
24.01.2019
31.01.2019
24.01.2019
24.01.2019
04.02.2019
28.01.2019
31.01.2019
24.01.2019
31.01.2019
04.02.2019
29.01.2019
30.01.2019
01.02.2019
01.02.2019
29.01.2019
01.02.2019
29.01.2019
16.01.2019
01.02.2019
24.01.2019
01.02.2019
INR
USD
INR
USD
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
Equity
Share
Capital
0.07
0.01
486.03
69.66
1.78
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
1.63
0.23
(471.97)
(67.64)
(0.95)
1.70
0.24
14.08
2.02
6.70
-
-
0.02
0.00
5.87
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.70
0.24
0.01
0.00
12.55
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.66
0.24
(0.83)
(0.12)
(3.68)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
-
-
-
-
(0.25)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.66
0.24
(0.83)
(0.12)
(3.43)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.66
0.24
(0.83)
(0.12)
(3.43)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
As on 31.12.2018: 1US$ =69.7750, 1GBP =89.0600, 1EUR =79.9875, 1AUD =49.2775, 1RM =16.8850, 1SGD=51.2475, 1CNY=10.1139, 1PLN=18.6017
As on 31.03.2019: 1US$ =69.1550, 1GBP =90.5250, 1EUR =77.6725, 1AUD =49.0200, 1RM =16.9400
* Representing aggregate % of voting power held by the company and / or its subsidiaries
# Company having 31st December as reporting date
^ Financial information is based on Unaudited Results
** Not Consolidated
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
81.64
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
433
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES / ASSOCIATES / JOINT VENTURES AS PER COMPANIES ACT, 2013
Sr.
No.
Name of Subsidiary Company
The date
since which
Subsidiary
was acquired
Reporting
Currency
Equity
Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue from
Operations /
Total Income
Profit Before
Taxation
Provi-
sion for
Taxation
Profit After
Taxation
28
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
56
57
58
59
60
61
62
63
64
65
66
67
Dronagiri Pagote South First Infra
Limited ^
Dronagiri Pagote South Infra Limited ^
Dronagiri Pagote West Infra Limited ^
Dronagiri Panje East Infra Limited ^
Dronagiri Panje North Infra Limited ^
Dronagiri Panje South Infra Limited ^
Dronagiri Panje West Infra Limited ^
Ethane Crystal LLC
Ethane Emerald LLC
Ethane Opal LLC
Ethane Pearl LLC
Ethane Sapphire LLC
Ethane Topaz LLC
Genesis Colors Limited
Genesis La Mode Private Limited
Genesis Luxury Fashion Private
Limited
GLB Body Care Private Limited
GLF Lifestyle Brands Private Limited
GML India Fashion Private Limited
Grab A Grub Services Private Limited **
Indiavidual Learning Private Limited
Indiawin Sports Private Limited
Jio Estonia OÜ #
Jio Information Solutions Limited
Jio Infrastructure Management
Services Limited ##
Jio Payments Bank Limited
Kalamboli East Infra Limited ^
Kalamboli North First Infra Limited ^
Kalamboli North Infra Limited ^
Kalamboli North Second Infra
Limited ^
Kalamboli North Third Infra Limited ^
Kalamboli South First Infra Limited ^
Kalamboli South Infra Limited ^
Kalamboli West Infra Limited ^
Kanhatech Solutions Limited
M Entertainments Private Limited
Mindex 1 Limited
Model Economic Township Limited
Naroda Power Private Limited
New Emerging World of Journalism
Private Limited
01.02.2019
29.01.2019
24.01.2019
31.01.2019
28.01.2019
28.01.2019
04.02.2019
10.09.2014
10.09.2014
10.09.2014
10.09.2014
10.09.2014
10.09.2014
07.09.2018
07.09.2018
07.09.2018
07.09.2018
07.09.2018
07.09.2018
07.03.2019
11.06.2018
07.04.2010
22.11.2018
23.03.2015
04.09.2017
10.11.2016
24.01.2019
25.01.2019
24.01.2019
25.01.2019
25.01.2019
24.01.2019
01.02.2019
21.01.2019
01.08.2008
17.04.2018
21.05.2018
09.10.2006
12.12.2017
26.11.2018
INR
INR
INR
INR
INR
INR
INR
INR
USD
INR
USD
INR
USD
INR
USD
INR
USD
INR
USD
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
EUR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
GBP
INR
INR
INR
0.05
(0.00)
0.05
-
0.05
0.05
0.05
0.05
0.05
0.05
189.90
27.46
178.97
25.88
178.70
25.84
190.66
27.57
178.70
25.84
178.70
25.84
12.57
12.00
17.46
1.57
89.94
5.00
0.06
0.54
2.65
0.40
0.05
0.05
0.01
232.00
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
75.00
0.01
0.02
0.00
97.00
0.01
0.04
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
50.00
7.23
48.07
6.95
43.77
6.33
45.50
6.58
41.49
6.00
43.29
6.26
90.00
21.22
155.40
(1.26)
(12.53)
8.27
13.24
99.04
293.28
-
-
(0.06)
(0.03)
(15.88)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.19)
0.12
163.09
18.02
4,122.65
(0.10)
6.20
0.05
0.05
0.05
0.05
0.05
0.05
779.65
112.74
765.27
110.66
784.01
113.37
793.62
114.76
771.77
111.60
772.88
111.76
128.95
92.98
252.59
0.33
85.42
27.80
17.90
111.12
412.15
0.40
0.05
0.01
0.00
271.67
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
75.51
0.32
163.99
18.12
6,881.75
-
6.69
-
-
-
-
-
-
539.75
78.05
538.23
77.83
561.54
81.20
557.46
80.61
551.58
79.76
550.89
79.66
26.38
59.76
79.73
0.02
8.01
14.53
4.60
11.54
116.22
-
-
0.02
0.02
55.55
-
-
-
-
-
-
-
-
0.70
0.19
0.88
0.10
2,662.10
0.09
0.45
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
52.75
-
66.01
-
0.15
-
7.02
44.73
296.07
-
-
0.00
-
226.51
-
-
-
-
-
-
-
-
70.96
-
-
-
-
-
-
-
(0.00)
-
(0.00)
-
-
-
-
-
-
78.28
11.32
78.28
11.32
78.28
11.32
78.28
11.32
78.28
11.32
78.28
11.32
54.34
108.62
154.20
0.00
51.82
35.91
43.87
11.53
376.74
0.00
0.00
-
-
14.99
-
-
-
-
-
-
-
-
4.10
0.03
4.07
0.45
216.75
-
0.34
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
18.12
2.62
18.33
2.65
17.57
2.54
17.77
2.57
17.98
2.60
18.19
2.63
(14.73)
13.54
1.05
0.01
14.67
5.82
(7.23)
(2.86)
115.18
0.00
0.00
(0.02)
(0.01)
(2.45)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
3.97
0.02
3.71
0.41
(8.26)
(0.00)
(2.97)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3.86
(2.50)
0.00
-
1.45
-
(1.36)
24.04
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.01
0.36
0.04
2.53
-
(0.76)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
18.12
2.62
18.33
2.65
17.57
2.54
17.77
2.57
17.98
2.60
18.19
2.63
(14.73)
9.68
3.55
0.01
14.67
4.37
(7.23)
(1.50)
91.14
0.00
0.00
(0.02)
(0.01)
(2.45)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
3.97
0.01
3.35
0.37
(10.79)
(0.00)
(2.21)
(` in crore)
Foreign Currencies in Million
Total Com-
prehensive
Income
Proposed
Dividend
% of Share-
holding*
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
16.87
2.44
16.67
2.41
16.25
2.35
16.39
2.37
16.18
2.34
15.97
2.31
(14.24)
9.84
3.27
0.01
14.73
4.38
(7.38)
(1.56)
91.16
0.00
0.00
(0.02)
(0.01)
(2.41)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
3.97
0.01
3.35
0.37
(10.85)
(0.00)
(2.21)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3.17
0.35
-
-
-
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
72.73
100.00
99.37
100.00
100.00
100.00
73.03
85.25
100.00
100.00
100.00
100.00
70.00
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
75.00
Other
Compre-
hensive
Income
-
-
-
-
-
-
-
(1.25)
(0.18)
(1.66)
(0.24)
(1.32)
(0.19)
(1.38)
(0.20)
(1.80)
(0.26)
(2.22)
(0.32)
0.49
0.16
(0.28)
-
0.06
0.01
(0.15)
(0.06)
0.02
-
-
-
-
0.04
-
-
-
-
-
-
-
-
0.00
-
-
-
(0.06)
-
-
As on 31.12.2018: 1US$ =69.7750, 1GBP =89.0600, 1EUR =79.9875, 1AUD =49.2775, 1RM =16.8850, 1SGD=51.2475, 1CNY=10.1139, 1PLN=18.6017
As on 31.03.2019: 1US$ =69.1550, 1GBP =90.5250, 1EUR =77.6725, 1AUD =49.0200, 1RM =16.9400
* Representing aggregate % of voting power held by the company and / or its subsidiaries
# Company having 31st December as reporting date
^ Financial information is based on Unaudited Results
** Not Consolidated
## Formerly known as Reliance Digital Media Distribution Limited
434
ANNEXURE “A” to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Reporting
Currency
Equity
Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue from
Operations /
Total Income
Profit Before
Taxation
Provi-
sion for
Taxation
Profit After
Taxation
Other
Compre-
hensive
Income
Total Com-
prehensive
Income
Proposed
Dividend
% of Share-
holding*
(` in crore)
Foreign Currencies in Million
Sr.
No.
Name of Subsidiary Company
Radisys B.V. #
Radisys Canada Inc. #
Radisys Cayman Limited #
The date
since which
Subsidiary
was acquired
11.12.2018
11.12.2018
11.12.2018
Radisys Convedia (Ireland) Limited #
11.12.2018
Radisys Corporation #
Radisys GmbH #
Radisys India Private Limited
Radisys International LLC #
Radisys International Singapore
Pte. Ltd. #
Radisys Poland sp. z o.o #
Radisys Spain S.L.U. #
Radisys Systems Equipment Trading
(Shanghai) Co. Ltd. #
Radisys Technologies (Shenzhen)
Co. Ltd. #
Radisys UK Limited #
Recron (Malaysia) Sdn. Bhd. #
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
11.12.2018
11.12.2018
24.12.2018
11.12.2018
11.12.2018
11.12.2018
11.12.2018
11.12.2018
11.12.2018
11.12.2018
20.07.2007
31.03.2009
30.12.2009
12.10.2007
30.12.2009
26.09.2013
10.01.2017
31.03.2009
04.09.2017
30.03.2009
Reliance Eagleford Upstream GP LLC #
17.06.2010
Reliance Eagleford Upstream
Holding LP #
17.06.2010
Reliance Eagleford Upstream LLC #
16.06.2010
Reliance Eminent Trading &
Commercial Private Limited
Reliance Energy and Project
Development Limited
Reliance Energy Generation and
Distribution Limited
31.03.2009
30.12.2009
22.07.2010
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
INR
EUR
INR
USD
INR
USD
INR
USD
INR
USD
INR
EUR
INR
INR
USD
INR
SGD
INR
PLN
INR
EUR
INR
CNY
INR
CNY
INR
GBP
INR
RM
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
USD
INR
USD
INR
USD
INR
INR
INR
0.24
0.03
0.00
0.00
0.02
0.00
0.00
0.00
523.31
75.00
0.21
0.03
0.21
38.44
5.51
0.00
0.00
0.01
0.01
0.02
0.00
3.52
3.48
41.75
41.28
1.69
0.19
9,168.39
542.99
1.00
1.01
101.08
1.01
0.05
8.44
1.06
21.70
3.11
0.05
0.01
1.74
0.25
(752.98)
(107.92)
3.95
0.49
118.12
62.92
9.02
0.36
0.07
1.31
0.70
0.90
0.11
10.77
10.65
(48.33)
(47.79)
6.25
0.70
3,869.70
229.18
912.49
2,779.05
359.13
2,603.94
(39.47)
15.00
1.00
0.05
2,379.99
0.26
0.04
21,479.19
3,078.35
21,479.84
3,078.44
10.00
262.13
117.01
6,887.85
16,293.08
(0.19)
(0.03)
(16,488.66)
(2,363.12)
(16,487.72)
(2,362.98)
3,831.27
10.14
1.27
25.26
3.62
0.07
0.01
3.00
0.43
507.05
72.67
6.42
0.80
148.86
101.39
14.53
1.49
0.29
1.40
0.75
1.21
0.15
17.74
17.54
76.12
75.26
8.29
0.93
32,216.75
1,908.01
922.51
2,780.07
1,658.09
2,604.97
41.56
589.27
118.06
6,887.90
38,193.34
0.07
0.01
6,462.33
926.17
5,223.43
748.61
4,291.79
1.46
0.18
3.56
0.51
-
-
1.26
0.18
736.72
105.59
2.26
0.28
30.53
0.03
0.00
1.13
0.22
0.08
0.04
0.29
0.04
3.45
3.41
82.70
81.77
0.35
0.04
19,178.66
1,135.84
9.02
0.01
1,197.88
0.02
80.98
312.14
0.05
0.00
19,520.27
-
-
1,471.80
210.94
231.31
33.15
450.52
4.16
0.52
-
-
-
-
-
-
42.88
6.15
-
-
-
0.03
0.00
-
-
-
-
0.01
0.00
-
-
-
-
0.83
0.09
-
-
135.59
2,780.06
789.78
2,604.91
-
23.69
-
6,887.86
18.93
-
-
-
-
4,992.01
715.44
-
1.01
1,095.54
1,096.74
0.19
1,096.48
1.25
10,869.99
11,113.95
242.71
10,871.20
4.38
0.55
6.55
0.94
-
-
-
-
741.35
106.25
8.71
1.09
195.26
2.37
0.34
2.84
0.55
1.26
0.68
2.05
0.26
3.00
2.96
16.83
16.64
3.12
0.35
58,695.97
3,476.22
6.98
0.02
357.14
0.01
38.36
522.99
-
-
8,854.50
-
-
1,619.70
232.13
594.95
85.27
37.78
0.02
0.36
0.34
0.04
0.63
0.09
-
-
(0.21)
(0.03)
(218.47)
(31.31)
1.10
0.14
31.10
0.12
0.02
0.15
0.03
(0.29)
(0.15)
0.16
0.02
0.58
0.57
(0.35)
(0.34)
0.38
0.04
2,650.61
156.98
(0.51)
(0.12)
(57.44)
(0.24)
(19.62)
0.88
(0.03)
(2.99)
504.66
-
-
(1,588.96)
(227.73)
(4,427.70)
(634.57)
5.01
(0.12)
(1.09)
0.07
0.01
2.30
0.33
-
-
-
-
4.47
0.64
0.31
0.04
10.53
-
-
0.02
0.00
-
-
0.03
0.00
-
-
-
-
0.01
0.00
(631.33)
(37.39)
-
-
(16.93)
-
-
0.16
-
-
123.54
-
-
-
-
-
-
-
-
-
0.27
0.03
(1.67)
(0.24)
-
-
(0.21)
(0.03)
(222.94)
(31.95)
0.79
0.10
20.57
0.12
0.02
0.13
0.03
(0.29)
(0.15)
0.13
0.02
0.58
0.57
(0.35)
(0.34)
0.37
0.04
3,281.94
194.37
(0.51)
(0.12)
(40.51)
(0.24)
(19.62)
0.72
(0.03)
(2.99)
381.12
-
-
(1,588.96)
(227.73)
(4,427.70)
(634.57)
5.01
(0.12)
(1.09)
-
-
(1.47)
(0.21)
-
-
-
-
1.19
0.17
-
-
0.17
-
-
-
-
-
-
-
-
-
-
-
-
-
-
227.78
13.49
-
-
0.25
-
0.01
(0.08)
-
-
(0.12)
-
-
-
-
-
-
-
-
-
0.27
0.03
(3.14)
(0.45)
-
-
(0.21)
(0.03)
(221.75)
(31.78)
0.79
0.10
20.74
0.12
0.02
0.13
0.03
(0.29)
(0.15)
0.13
0.02
0.58
0.57
(0.35)
(0.34)
0.37
0.04
3,509.72
207.86
(0.51)
(0.12)
(40.26)
(0.24)
(19.61)
0.64
(0.03)
(2.99)
381.00
-
-
(1,588.96)
(227.73)
(4,427.70)
(634.57)
5.01
(0.12)
(1.09)
As on 31.12.2018: 1US$ =69.7750, 1GBP =89.0600, 1EUR =79.9875, 1AUD =49.2775, 1RM =16.8850, 1SGD=51.2475, 1CNY=10.1139, 1PLN=18.6017
As on 31.03.2019: 1US$ =69.1550, 1GBP =90.5250, 1EUR =77.6725, 1AUD =49.0200, 1RM =16.9400
* Representing aggregate % of voting power held by the company and / or its subsidiaries
# Company having 31st December as reporting date
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
80.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
435
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES / ASSOCIATES / JOINT VENTURES AS PER COMPANIES ACT, 2013
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue from
Operations /
Total Income
Profit Before
Taxation
Provi-
sion for
Taxation
Profit After
Taxation
Other
Compre-
hensive
Income
Total Com-
prehensive
Income
Proposed
Dividend
% of Share-
holding*
(` in crore)
Foreign Currencies in Million
Sr.
No.
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
Name of Subsidiary Company
The date
since which
Subsidiary
was acquired
Reporting
Currency
Reliance Ethane Holding Pte Limited
04.09.2014
Reliance Exploration & Production
DMCC #
Reliance GAS Lifestyle India Private
Limited
Reliance Gas Pipelines Limited
Reliance Global Energy Services
(Singapore) Pte Ltd.
Reliance Global Energy Services
Limited
Reliance–GrandOptical Private
Limited
Reliance Holding USA, Inc. #
Reliance Industrial Investments and
Holdings Limited
Reliance Industries (Middle East)
DMCC #
Reliance Industries Uruguay
Petroquímica S.A. #**
Reliance Innovative Building
Solutions Private Limited
06.12.2006
09.08.2017
26.11.2012
18.08.2008
20.06.2008
17.03.2008
29.03.2010
30.12.1988
11.05.2005
21.08.2017
30.03.2015
Reliance Jio Digital Services Limited
22.09.2014
Reliance Jio Global Resources LLC #
Reliance Jio Infocomm Limited
Reliance Jio Infocomm Pte Limited #
15.01.2015
17.06.2010
01.02.2013
Reliance Jio Infocomm UK Limited #
30.07.2013
Reliance Jio Infocomm USA, Inc. #
Reliance Jio Media Limited
Reliance Jio Messaging Services
Limited
Reliance Lifestyle Holdings Limited
Reliance Marcellus II LLC #
Reliance Marcellus LLC #
Reliance Navi Mumbai Infra 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
05.06.2013
02.01.2015
12.09.2013
31.03.2012
28.06.2010
29.03.2010
24.01.2019
07.09.2007
31.03.2009
30.12.2009
31.03.2009
31.03.2009
31.03.2009
INR
USD
INR
USD
INR
INR
INR
USD
INR
GBP
INR
INR
USD
INR
INR
USD
INR
USD
INR
INR
INR
USD
INR
INR
USD
INR
GBP
INR
USD
INR
INR
INR
INR
USD
INR
USD
INR
INR
INR
INR
INR
INR
INR
Equity
Share
Capital
1,096.11
158.50
334.82
47.99
100.00
373.00
8.13
1.18
27.16
3.00
0.05
(0.96)
(0.14)
1,332.74
191.00
2.16
379.00
231.86
33.52
8.54
0.95
(0.04)
1,095.70
158.44
1,688.37
241.97
109.16
3,819.36
5,059.72
731.65
187.82
20.75
0.02
0.55
0.08
20.81
2.98
7.00
3,067.36
4,819.73
696.95
152.12
16.80
0.01
1,095.59
158.43
-
-
4.45
126.96
-
-
167.03
18.45
-
12,238.88
1,754.05
147.50
(32,786.21)
(4,698.85)
38,639.42
14,956.30
2,143.50
53,776.92
35,503.63
5,088.30
14,990.00
12,173.23
1,744.64
25,321.64
1,246.39
178.63
0.70
0.10
64.69
40.00
0.00
0.00
45,000.00
902.89
129.40
53.44
6.00
268.97
38.55
86.01
97.33
0.05
3,667.41
525.61
23,815.92
3,413.25
0.05
115.00
0.05
1.01
10.00
(107.11)
(15.34)
0.09
0.02
(52.12)
202.97
51.14
7.33
(4,600.08)
(3.78)
(0.54)
1.86
0.21
(11.00)
(1.58)
(2.58)
(10.93)
71.59
(3,699.47)
(530.21)
(16,765.02)
(2,402.73)
(0.00)
900.55
210.03
2,477.88
2,528.61
4,305.08
617.00
1.10
0.16
23.60
248.88
51.61
7.40
1,95,780.01
1,163.05
166.69
77.27
8.68
273.85
39.25
85.55
87.25
318.93
0.49
0.07
9,915.76
1,421.11
0.05
1,088.04
945.06
2,595.86
3,413.50
3,165.80
453.71
0.31
0.04
11.03
5.91
0.47
0.07
1,55,380.09
263.94
37.83
21.97
2.47
15.88
2.28
2.12
0.85
247.29
32.55
4.67
2,864.86
410.59
-
72.49
734.98
116.97
874.89
1.00
630.67
639.33
7.66
10.00
2,807.39
2,916.23
98.84
2,769.63
396.94
-
-
-
17.36
-
-
1,263.56
-
-
-
-
123.81
17.74
5.96
0.34
1.03
-
-
-
-
-
8.24
215.39
2,477.46
0.00
-
-
-
-
-
-
55.86
1,477.71
55,200.63
7,982.16
22.99
2.54
0.00
1,299.65
186.26
1,233.94
21,693.06
3,109.00
2.35
0.34
1.70
0.53
62.42
8.95
38,838.46
365.35
52.36
83.01
9.32
119.78
17.17
1.50
0.30
395.92
2.50
0.36
816.67
117.04
-
6.45
13,209.59
123.57
48.61
(0.10)
(0.01)
(19.84)
(2.84)
3.51
11.28
200.02
28.93
1.47
0.16
(0.00)
(8,503.45)
(1,218.70)
24.01
75.41
10.81
0.21
0.03
(8.84)
(4.26)
3.98
0.57
4,556.46
11.42
1.64
1.41
0.16
2.81
0.40
(1.22)
(7.61)
2.27
(4.82)
(0.69)
(509.01)
(72.95)
(0.00)
(4.59)
126.47
(0.21)
1.05
6.74
(0.85)
24.90
0.43
-
-
-
-
1.25
1.93
10.69
1.55
0.03
0.00
-
-
-
3.80
-
-
0.09
0.01
-
-
-
-
1,592.03
-
-
0.23
0.03
1.42
0.20
-
-
-
-
-
-
-
-
-
44.74
0.15
-
-
-
(0.10)
(0.01)
(19.84)
(2.84)
2.26
9.35
189.33
27.38
1.44
0.16
(0.00)
-
-
-
-
0.01
0.50
-
-
-
-
-
(0.10)
(0.01)
(19.84)
(2.84)
2.27
9.85
189.33
27.38
1.44
0.16
(0.00)
(8,503.45)
(1,218.70)
20.21
-
-
456.33
(8,503.45)
(1,218.70)
476.54
75.41
10.81
0.12
0.02
(8.84)
(4.26)
3.98
0.57
2,964.43
11.42
1.64
1.18
0.13
1.39
0.20
(1.22)
(7.61)
2.27
(4.82)
(0.69)
(509.01)
(72.95)
(0.00)
(4.59)
81.73
(0.36)
1.05
(0.85)
0.43
-
-
-
-
-
(0.11)
-
-
3.85
-
-
-
-
-
-
-
-
0.11
-
-
-
-
-
0.01
4.90
(7.49)
-
-
-
75.41
10.81
0.12
0.02
(8.84)
(4.37)
3.98
0.57
2,968.28
11.42
1.64
1.18
0.13
1.39
0.20
(1.22)
(7.61)
2.38
(4.82)
(0.69)
(509.01)
(72.95)
(0.00)
(4.58)
86.63
(7.85)
1.05
(0.85)
0.43
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.44
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
As on 31.12.2018: 1US$ =69.7750, 1GBP =89.0600, 1EUR =79.9875, 1AUD =49.2775, 1RM =16.8850, 1SGD=51.2475, 1CNY=10.1139, 1PLN=18.6017
As on 31.03.2019: 1US$ =69.1550, 1GBP =90.5250, 1EUR =77.6725, 1AUD =49.0200, 1RM =16.9400
* Representing aggregate % of voting power held by the company and / or its subsidiaries
# Company having 31st December as reporting date
^ Financial information is based on Unaudited Results
** Formerly known as Dreketi S.A.
436
ANNEXURE “A” to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Sr.
No.
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
Name of Subsidiary Company
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
Reverie Language Technologies
Private Limited **
Rhea Retail Private Limited
RIL USA, Inc. #
20.02.2007
20.11.2006
20.11.2006
24.04.2007
21.02.2012
27.11.2007
28.12.2001
27.09.2008
31.03.2009
27.12.2007
07.10.1999
12.09.2013
22.03.2019
07.06.2018
26.02.2009
RP Chemicals (Malaysia) Sdn. Bhd. #
11.02.2016
Saavn Inc. #
Saavn LLC #
Saavn Media Private Limited ##
Sankhyasutra Labs Private Limited **
Surela Investment and Trading
Limited
The Indian Film Combine Private
Limited
Ulwe East Infra Limited ^
Ulwe North Infra Limited ^
Ulwe South Infra Limited ^
Ulwe Waterfront East Infra Limited ^
Ulwe Waterfront North Infra Limited ^
Ulwe Waterfront South Infra Limited ^
Ulwe Waterfront West Infra Limited ^
Ulwe West Infra Limited ^
05.04.2018
05.04.2018
05.04.2018
12.03.2019
07.05.2012
17.04.2018
04.02.2019
28.01.2019
28.01.2019
29.01.2019
29.01.2019
15.01.2019
30.01.2019
04.02.2019
The date
since which
Subsidiary
was acquired
Reporting
Currency
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue from
Operations /
Total Income
Profit Before
Taxation
Provi-
sion for
Taxation
Profit After
Taxation
Other
Compre-
hensive
Income
-
0.02
1.49
-
-
Equity
Share
Capital
2.02
4.00
4,989.54
6,000.00
1,644.53
0.05
2.02
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
USD
INR
RM
INR
USD
INR
USD
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
99.82
13.73
7,597.87
1,648.12
4.19
(10.70)
1,704.98
101.86
19.32
0.02
1.59
34,377.55
7,688.44
4,209.01
21,790.14
40.32
2,560.29
306.19
4,100.19
316.84
2,393.19
101.75
13.01
3,576.13
7,678.13
56.33
-
3,143.81
0.07
17.28
(0.12)
4.98
0.00
1.39
1,01,946.52
14.00
17.00
4,818.78
1.09
0.47
1,680.52
0.22
2.86
(0.12)
3.59
3,138.26
0.87
(2.39)
2,037.67
(105.03)
1.15
(368.87)
0.21
32.81
0.94
(401.68)
(0.65)
-
6.43
3,410.16
3,416.62
0.03
3,416.56
10.00
255.86
1,349.69
1,083.83
-
0.56
2.69
0.01
0.02
77.73
20.93
3.00
2,657.94
1,574.14
0.00
0.00
1,373.87
196.90
0.06
0.11
0.05
156.70
3,772.87
6,163.60
24.02
(113.59)
845.12
121.12
(1,829.16)
(1,083.31)
122.68
17.58
(1,290.17)
(184.90)
6,389.78
13.10
(0.54)
159.07
6,100.90
6,163.68
32.70
174.73
2,626.61
376.44
906.17
536.67
122.68
17.58
172.02
24.65
6,652.26
13.56
21.57
1.81
2,325.34
0.07
8.66
210.59
1,760.56
252.32
77.39
45.83
-
-
88.25
12.65
262.42
0.35
22.06
-
4,932.25
6,163.50
24.05
-
-
-
-
-
122.68
17.58
-
-
1,766.83
-
3.91
0.02
3.58
4.03
224.00
0.02
3.15
191.29
27,380.41
3,924.10
501.11
296.78
-
-
126.82
18.18
11.69
2.63
0.30
(0.38)
-
(0.38)
0.62
(0.57)
1.19
0.58
113.43
(0.82)
(56.38)
(21.18)
317.05
45.44
23.52
13.93
(0.00)
(0.00)
(47.95)
(6.87)
(0.95)
(0.84)
0.10
(1.98)
35.53
-
(0.13)
1.26
4.88
0.70
0.20
0.12
-
-
0.01
0.00
0.72
-
0.05
2.56
77.90
(0.82)
(56.25)
(22.44)
312.17
44.74
23.32
13.81
(0.00)
(0.00)
(47.96)
(6.87)
(1.67)
(0.84)
0.05
6.90
2,211.25
2,463.91
245.76
13.83
0.60
(0.02)
0.58
(0.60)
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
-
-
-
-
-
-
-
-
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
-
-
-
-
-
0.03
0.59
-
-
-
-
-
-
-
-
(0.13)
-
-
-
-
-
-
-
-
-
-
-
As on 31.12.2018: 1US$ =69.7750, 1GBP =89.0600, 1EUR =79.9875, 1AUD =49.2775, 1RM =16.8850, 1SGD=51.2475, 1CNY=10.1139, 1PLN=18.6017
As on 31.03.2019: 1US$ =69.1550, 1GBP =90.5250, 1EUR =77.6725, 1AUD =49.0200, 1RM =16.9400
* Representing aggregate % of voting power held by the company and / or its subsidiaries
# Company having 31st December as reporting date
^ Financial information is based on Unaudited Results
** Not Consolidated
## Financial information for Saavn Media Private Limited is for a period of 15 months
The above statement also indicates performance and financial position of each of the subsidiaries.
(` in crore)
Foreign Currencies in Million
Total Com-
prehensive
Income
Proposed
Dividend
% of Share-
holding*
(0.12)
3.61
3,139.75
0.87
(2.39)
0.29
(401.68)
(0.38)
1.19
2.56
77.90
(0.82)
(56.22)
(21.85)
312.17
44.74
23.32
13.81
(0.00)
(0.00)
(47.96)
(6.87)
(1.80)
(0.84)
0.05
(0.60)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
99.95
94.45
74.90
100.00
100.00
100.00
100.00
100.00
100.00
100.00
80.16
100.00
100.00
100.00
100.00
100.00
82.33
85.62
100.00
83.17
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
437
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 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.
Name of the Companies
Dronagiri Bokadvira East Infra Limited
Dronagiri Bokadvira North Infra Limited
Dronagiri Bokadvira South Infra Limited
Dronagiri Bokadvira West Infra Limited
Dronagiri Dongri East Infra Limited
Dronagiri Dongri North Infra Limited
Dronagiri Dongri South Infra Limited
Dronagiri Dongri West Infra Limited
Dronagiri Funde East Infra Limited
1
2
3
4
5
6
7
8
9
10 Dronagiri Funde North Infra Limited
11 Dronagiri Funde South Infra Limited
12 Dronagiri Funde West Infra Limited
13 Dronagiri Navghar East Infra Limited
14 Dronagiri Navghar North First Infra Limited
15 Dronagiri Navghar North Infra Limited
16 Dronagiri Navghar North Second Infra Limited
17 Dronagiri Navghar South First Infra Limited
18 Dronagiri Navghar South Infra Limited
19 Dronagiri Navghar South Second Infra Limited
20 Dronagiri Navghar West Infra Limited
21 Dronagiri Pagote East Infra Limited
22 Dronagiri Pagote North First Infra Limited
23 Dronagiri Pagote North Infra Limited
24 Dronagiri Pagote North Second Infra Limited
25 Dronagiri Pagote South First Infra Limited
26 Dronagiri Pagote South Infra Limited
27 Dronagiri Pagote West Infra Limited
28 Dronagiri Panje East Infra Limited
29 Dronagiri Panje North Infra Limited
30 Dronagiri Panje South Infra Limited
31 Dronagiri Panje West Infra Limited
32 Kalamboli East Infra Limited
33 Kalamboli North First Infra Limited
34 Kalamboli North Infra Limited
35 Kalamboli North Second Infra Limited
36 Kalamboli North Third Infra Limited
37 Kalamboli South First Infra Limited
38 Kalamboli South Infra Limited
39 Kalamboli West Infra Limited
40 Reliance Navi Mumbai Infra Limited
41 Ulwe East Infra Limited
42 Ulwe North Infra Limited
43 Ulwe South Infra Limited
44 Ulwe Waterfront East Infra Limited
45 Ulwe Waterfront North Infra Limited
46 Ulwe Waterfront South Infra Limited
47 Ulwe Waterfront West Infra Limited
48 Ulwe West Infra Limited
438
ANNEXURE “A” to the Consolidated Financial Statements for the year ended 31st March, 2019ConsolidatedReliance Industries Limited | Integrated Annual Report 2018–19 Name of the Subsidiaries which have ceased to be subsidiary / liquidated / sold / merged during the year
Sr.
No.
1
2
3
4
5
6
7
8
Name of the Companies
Jio Digital Fibre Private Limited
Resolute Land Consortium Projects Limited
RIL Exploration and Production (Myanmar) Limited
Reliance LNG Limited
Reliance Jio Infratel Private Limited
Rutvi Project Managers Private Limited
Santol Commercials Private Limited
Tangerine Agro Private Limited
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
ASSOCIATES
Latest
audited
Balance
Sheet
Date
The date on
which the
Associate
or Joint
Venture was
associated
or acquired
Shares of Associate / Joint Ventures
held by the Company on the year end
No.
Amount of
Investment
in Associates /
Joint Venture
(` in crore)
Extent
of
Holding
%
Net-worth
attributable to
Shareholding
as per latest
audited
Balance Sheet
(` in crore)
Profit / Loss for the year
Considered in
Consolidation
(` in crore)
Not
Considered in
Consolidation
Description
of how
there is
Significant
Influence
Reason
why the
Associate /
Joint Venture
is not
consolidated
1
2
3
4
5
6
7
8
Gujarat Chemical Port Terminal Company Limited
31.03.2018
01.04.2006
64,29,20,000
64.29
41.80%
Indian Vaccines Corporation Limited
Reliance Europe Limited
31.03.2018
27.03.1989
31.12.2018
10.06.1993
Reliance Industrial Infrastructure Limited
31.03.2019
19.05.1994
Rutvi Project Managers Private Limited *
-
29.03.2019
62,63,125
11,08,500
68,60,064
5,00,000
Balaji Telefilms Limited
Jio Digital Fibre Private Limited *
31.03.2018
22.08.2017
2,52,00,000
-
31.03.2019
2,49,54,43,338
Jamnagar Utilities & Power Private Limited
31.03.2018
07.05.2018
52,00,000
0.61
3.93
33.33%
50.00%
16.30
45.43%
0.50
50.00%
206.64
24.92%
249.54
48.46%
0.40
26.00%
251.36
3.07
57.08
153.82
-
211.72
-
0.52
79.06
(0.51)
1.53
3.51
(0.00)
-
-
-
-
-
-
-
-
-
-
-
Note-A
Note-A
Note-A
Note-A
Note-A
-
-
-
-
-
-
-
-
Note-B
Note-B
Note-C
* Incorporated during the year
Notes:
A. There is significant influence due to percentage(%) of voting power.
B. Accounted as per requirement of Ind AS 109- Financial Instruments.
C. The Company holds 26% of equity shares with voting rights, with no right to dividend and no right to participate in the surplus assets of the company.
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)
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P. K. Kapil
Chairman & Managing Director
Executive Directors
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Nita M. Ambani
Non-Executive, Non-Independent Director
Alok Agarwal
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Mumbai
Date: April 18, 2019
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
Independent Directors
439
Notice 440 ‒ 450Governance 184 ‒ 257Financial Statements258 ‒ 439Management Review47 ‒ 183Corporate Overview1 ‒ 46Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. NOTICE
NOTICE is hereby given that the Forty-second Annual General
Meeting (Post-IPO) of the members of Reliance Industries Limited
will be held on Monday, August 12, 2019 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, 2019 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, 2019 and the
report of Auditors thereon and in this regard, to consider and
if thought fit, to pass, with or without modification(s), the
following resolutions as Ordinary Resolutions:
a)
“RESOLVED THAT the audited financial statement of the
Company for the financial year ended March 31, 2019 and
the reports of the Board of Directors and Auditors thereon
laid before this meeting, be and are hereby considered
and adopted.”
b) “RESOLVED THAT the audited consolidated financial
statement of the Company for the financial year ended
March 31, 2019 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, 2019 and in this regard, to consider and
if thought fit, to pass, with or without modification(s), the
following resolution as an Ordinary Resolution:
“RESOLVED THAT a dividend at the rate of ` 6.50 (Six rupees
and Fifty paise only) per equity share of ` 10/- (Ten rupees)
each fully paid-up of the Company, as recommended by
the Board of Directors, be and is hereby declared for the
financial year ended March 31, 2019 and the same be paid
out of the profits of the Company for the financial year ended
March 31, 2019.”
3. To appoint Shri Pawan Kumar Kapil, who retires by rotation as
a Director and in this regard, to consider and if thought fit, to
pass, with or without modification(s), the following resolution
as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section
152 and other applicable provisions of the Companies Act,
2013, Shri Pawan Kumar Kapil (DIN: 02460200), 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 Smt. Nita M. Ambani, who retires by rotation as a
Director and in this regard, to consider and if thought fit, to
pass, with or without modification(s), the following resolution
as an Ordinary Resolution:
440
“RESOLVED THAT pursuant to the provisions of Section 152
and other applicable provisions of the Companies Act, 2013,
Smt. Nita M. Ambani (DIN: 03115198), 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 P.M.S. Prasad as a Whole-time Director and
in this regard, to consider and if thought fit, to pass, with or
without modification(s), the following resolution as a Special
Resolution:
“RESOLVED THAT in accordance with the provisions
of Sections 196, 197 and 203 read with Schedule V and
other applicable provisions of the Companies Act, 2013
and the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 (including any statutory
modification(s) or re-enactment(s) thereof, for the time being
in force), approval of the members be and is hereby accorded
to re-appoint Shri P.M.S. Prasad (DIN: 00012144) as a Whole-
time Director, designated as Executive Director, for a period of
5 (five) years from the expiry of his present term of office, i.e.,
with effect from August 21, 2019 on the terms and conditions
including remuneration as set out in the Statement annexed
to the Notice, with liberty to the Board of Directors (hereinafter
referred to as “the Board” which term shall include the Human
Resources, Nomination and Remuneration Committee of the
Board) to alter and vary the terms and conditions of the said
re-appointment and / or remuneration as it may deem fit;
RESOLVED FURTHER THAT the Board be and is hereby
authorised to do all acts and take all such steps as may
be necessary, proper or expedient to give effect to this
resolution.”
6. To re-appoint Shri Raminder Singh Gujral as an Independent
Director and in this regard, to consider and if thought fit, to
pass, with or without modification(s), the following resolution
as a Special Resolution:
“RESOLVED THAT pursuant to the provisions of Sections 149,
152 read with Schedule IV and other applicable provisions of
the Companies Act, 2013 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
Raminder Singh Gujral (DIN: 07175393), who was appointed
as an Independent Director and who holds office as an
Independent Director up to June 11, 2020 and in respect
of whom the Company has received a notice in writing
under Section 160 of the Act from a member proposing his
candidature for the office of Director, being eligible, be and is
hereby re-appointed as an Independent Director, not liable to
Reliance Industries Limited | Integrated Annual Report 2018–19
retire by rotation and to hold office for a second term of 5 (five)
consecutive years, i.e., up to June 11, 2025;
RESOLVED FURTHER THAT the Board of Directors 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.”
7. To appoint Smt. Arundhati Bhattacharya as an Independent
Director and in this regard, to consider and if thought fit, to
pass, with or without modification(s), the following resolution
as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Sections 149,
152 read with Schedule IV and other applicable provisions of
the Companies Act, 2013 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), Smt.
Arundhati Bhattacharya (DIN: 02011213), who was appointed
as an Additional Director pursuant to the provisions of
Section 161(1) of the Act and the Articles of Association of
the Company and in respect of whom the Company has
received a notice in writing under Section 160 of the Act from
a member proposing her candidature for the office of Director,
be and is hereby appointed as an Independent Director, not
liable to retire by rotation and to hold office for a term up to
October 16, 2023;
RESOLVED FURTHER THAT the Board of Directors be and is
hereby authorised to do all acts and take all such steps as
may be necessary, proper or expedient to give effect to this
resolution.”
8. To ratify the remuneration of Cost Auditors for the financial
year ending March 31, 2020 and in this regard, to consider
and if thought fit, to pass, with or without modification(s), the
following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section 148
and other applicable provisions of the Companies Act, 2013
read with the Companies (Audit and Auditors) Rules, 2014
(including any statutory modification(s) or re-enactment(s)
thereof, for the time being in force), the remuneration,
as approved by the Board of Directors and set out in the
Statement annexed to the Notice, to be paid to the Cost
Auditors appointed by the Board of Directors, to conduct the
audit of cost records of the Company for the financial year
ending March 31, 2020, be and is hereby ratified.”
By Order of the Board of Directors
K. Sethuraman
Group Company Secretary and Chief Compliance Officer
Mumbai, July 3, 2019
Registered Office:
3rd Floor, Maker Chambers IV, 222, Nariman Point,
Mumbai 400 021, India
CIN: L17110MH1973PLC019786
Website: www.ril.com E-mail: investor.relations@ril.com
Tel.: +91 22 3555 5000 Fax: +91 22 2204 2268
441
Governance 184 ‒ 257Management Review47 ‒ 183Corporate Overview1 ‒ 46Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution.
NOTICE
NOTES:
1. 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.
2. 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 proxy holder shall prove his identity at
the time of attending the Meeting.
3. Attendance slip, proxy form and the route map of the venue of
the Meeting are annexed hereto.
4. 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.
5. 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 in the
e-voting communication. 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. 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. The Company has provided facility of one-way live webcast
of the proceedings of the Meeting. Members who are entitled
to participate in the Meeting can view the same. Members are
requested to read instructions in this regard contained in the
accompanying e-voting communication.
7.
In terms of the provisions of Section 152 of the Act, Shri Pawan
Kumar Kapil and Smt. Nita M. Ambani, Directors, retire by
rotation at the Meeting. Human Resources, Nomination and
442
Remuneration Committee and the Board of Directors of the
Company commend their respective re-appointments.
Shri Pawan Kumar Kapil and Smt. Nita M. Ambani are
interested in the Ordinary Resolutions set out at Item Nos.
3 and 4, respectively, of the Notice with regard to their
re-appointment. Shri Mukesh D. Ambani, Chairman and
Managing Director, being related to Smt. Nita M. Ambani may
be deemed to be interested in the resolution set out at Item
No. 4 of the Notice. Save and except the above, none of the
Directors / Key Managerial Personnel of the Company / their
relatives are, in any way, concerned or interested, financially
or otherwise, in the Ordinary Business set out under Item Nos.
1 to 4 of the Notice.
8. Details of Directors retiring by rotation / seeking appointment
/ re-appointment at the ensuing Meeting are provided in the
“Annexure” to the Notice.
9. Members / Proxies / Authorised Representatives are requested
to bring to the Meeting necessary details of their shareholding,
attendance slip(s) and copy(ies) of Annual Report.
10. 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 (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.
13. The Company has transferred the unpaid or unclaimed
dividends declared up to financial years 2010-11, 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 5, 2018 (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.
Reliance Industries Limited | Integrated Annual Report 2018–19
14. 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
2018-19, 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., July 9, 2018. Details
of shares so far 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.
Members may note that shares as well as unclaimed
dividends transferred to IEPF Authority can be claimed
back from the IEPF Authority.
The concerned members/investors are advised to read
Company’s Shareholders’ Referencer at weblink http://
www.ril.com/DownloadFiles/IRForms/Shareholders-
Referencer.pdf or visit the weblink of the IEPF Authority
http://iepf.gov.in/IEPFA/refund.html, or contact
Company’s Registrar and Transfer Agents, i.e., Karvy
Fintech Private Limited (“Karvy”), for detailed procedure
to lodge the claim with the IEPF Authority.
15. Securities and Exchange Board of India (“SEBI”) has
mandated that securities of listed companies can be
transferred only in dematerialised form w.e.f. April 1,
2019. Accordingly, the Company/Karvy has stopped
accepting any fresh lodgment of transfer of shares in
physical form. Members holding shares in physical form
are advised to avail of the facility of dematerialisation.
16. Due dates for transfer to IEPF, of the unclaimed/unpaid
dividends for the financial year 2011-12 and thereafter, are as
under:
17. Members holding shares in physical mode are:
a)
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.
b) advised to register 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)
requested to register / update their e-mail
address with the Company / Karvy for receiving all
communications from the Company electronically.
18. Members holding shares in electronic mode are:
a)
requested to submit their PAN and bank account details
to their respective Depository Participants (“DPs”) with
whom they are maintaining their demat accounts.
b) advised to contact their respective DPs for registering
nomination.
c)
requested to register / update their e-mail
address with their respective DPs for receiving all
communications from the Company electronically.
19. 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.
20. Shareholders’ Referencer giving guidance on securities
related matters is uploaded on the Company’s website and
can be accessed at link http://www.ril.com/DownloadFiles/
IRForms/Shareholders-Referencer.pdf.
Financial year
ended
March 31, 2012
March 31, 2013
March 31, 2014
March 31, 2015
March 31, 2016
March 31, 2017
March 31, 2018
Declaration Date
Due Date
21. Members are requested to fill in and send the Feedback Form
provided in the Annual Report.
June 7, 2012
June 6, 2013
June 18, 2014
June 12, 2015
March 10, 2016
July 21, 2017
July 5, 2018
July 13, 2019
July 12, 2020
July 24, 2021
July 18, 2022
April 15, 2023
August 26, 2024
August 4, 2025
443
Governance 184 ‒ 257Management Review47 ‒ 183Corporate Overview1 ‒ 46Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. NOTICE
STATEMENT PURSUANT TO SECTION 102(1) OF THE
COMPANIES ACT, 2013 (“THE ACT”)
The following Statement sets out all material facts relating to the
Special Business mentioned in the Notice:
Item No. 5
The Board of Directors of the Company (“the Board”), at its meeting
held on April 18, 2019 has, subject to approval of members,
re-appointed Shri P.M.S. Prasad (DIN: 00012144) as a Whole-time
Director, designated as Executive Director, for a period of 5 (five)
years from the expiry of his present term, i.e., with effect from
August 21, 2019, on terms and conditions including remuneration
as recommended by the Human Resources, Nomination and
Remuneration Committee (the ‘HRNR Committee’) of the Board.
It is proposed to seek members’ approval for the re-appointment
of and remuneration payable to Shri P.M.S. Prasad as a Whole-time
Director, designated as Executive Director of the Company, in terms
of the applicable provisions of the Companies Act, 2013 (“the Act”).
Broad particulars of the terms of re-appointment of and
remuneration payable to Shri P.M.S. Prasad are as under:
(a) Salary, Perquisites and Allowances per annum:
Salary
Perquisites and Allowances
(` in crore)
1.99
3.67
The perquisites and allowances, as aforesaid, shall include
accommodation (furnished or otherwise) or house rent
allowance in lieu thereof; house maintenance allowance
together with reimbursement of expenses and / or allowances
for utilisation of gas, electricity, water, furnishing and repairs,
medical assistance and leave travel concession for self
and family including dependents. The said perquisites and
allowances shall be evaluated, wherever applicable, as per
the provisions of Income Tax Act, 1961 or any rules thereunder
or any statutory modification(s) or re-enactment(s) thereof;
in the absence of any such rules, perquisites and allowances
shall be evaluated at actual cost.
(b) The Company’s contribution to provident fund,
superannuation or annuity fund, gratuity payable and
encashment of leave, as per the rules of the Company, shall be
in addition to the remuneration under (a) above.
(c) Increment in salary, perquisites and allowances and
remuneration by way of incentive / bonus / performance
linked incentive, payable to Shri P.M.S. Prasad, as may be
determined by the Board and / or the HRNR Committee of
the Board, shall be in addition to the remuneration under (a)
above.
(d) It is clarified that employees stock options granted / to be
granted to Shri P.M.S. Prasad, from time to time, shall not be
considered as a part of perquisites under (a) above, and that
the perquisite value of stock options exercised shall be in
addition to the remuneration under (a) above.
444
(e) Reimbursement of Expenses:
Expenses incurred for travelling, board and lodging including
for Shri P.M.S. Prasad’s spouse and attendant(s) during
business trips and provision of car(s) for use on Company’s
business and communication expenses at residence shall be
reimbursed at actuals and not considered as perquisites.
The overall remuneration payable every year to the Managing
Director and the Whole-time Directors by way of salary, perquisites
and allowances, incentive / bonus / performance linked incentive,
remuneration based on net profits, etc., as the case may be, shall
not exceed in the aggregate 1% (one percent) of the net profits of
the Company as computed in the manner laid down in Section
198 of the Act or any statutory modification(s) or re-enactment(s)
thereof.
(f) General:
(i) The Whole-time Director will perform his duties as such
with regard to all work of the Company and will manage
and attend to such business and carry out the orders and
directions given by the Board / Managing Director from
time to time in all respects and conform to and comply
with all such directions and regulations as may from
time to time be given and made by the Board / Managing
Director and the functions of the Whole-time Director will
be under the overall authority of the Managing Director/
Board of Directors.
(ii) The Whole-time Director shall act in accordance with the
Articles of Association of the Company and shall abide by
the provisions contained in Section 166 of the Act with
regard to duties of directors.
(iii) The Whole-time Director shall adhere to the Company’s
Code of Conduct.
(iv) The office of the Whole-time Director may be terminated
by the Company or by him by giving the other 3 (three)
months’ prior notice in writing.
Shri P.M.S. Prasad will attain the age of seventy years on February
11, 2022. Shri P.M.S. Prasad has rich and varied experience in the
industry and has been involved in the operations of the Company.
It would be in the interest of the Company to continue to avail of
his considerable expertise and to re-appoint Shri P.M.S. Prasad
as a Whole-time Director. Accordingly, approval of the members
is sought for passing a Special Resolution for re-appointment of
Shri P.M.S. Prasad as a Whole-time Director, as set out in Part-I of
Schedule V to the Act as also under sub-section (3) of Section 196
of the Act.
Save and except as provided in the foregoing paragraph, Shri P.M.S.
Prasad satisfies all the other conditions set out in Part-I of Schedule
V to the Act as also conditions set out under sub-section (3) of
Section 196 of the Act for being eligible for his re-appointment. Shri
P.M.S. Prasad is not disqualified from being appointed as a director
in terms of Section 164 of the Act.
Reliance Industries Limited | Integrated Annual Report 2018–19
The above may be treated as a written memorandum setting out
the terms of re-appointment of Shri P.M.S. Prasad under Section
190 of the Act.
Details of Shri P.M.S. Prasad are provided in the “Annexure” to
the Notice, pursuant to the provisions of (i) the Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“Listing Regulations”) and (ii)
Secretarial Standard on General Meetings (“SS-2”), issued by the
Institute of Company Secretaries of India.
Shri P.M.S. Prasad is interested in the resolution set out at Item No.
5 of the Notice.
The relatives of Shri P.M.S. Prasad may be deemed to be interested
in the resolution set out at Item No. 5 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 Special Resolution set out at Item No. 5
of the Notice for approval by the members.
Item No. 6
At the Annual General Meeting held on June 12, 2015, the members
of the Company had appointed Shri Raminder Singh Gujral (DIN:
07175393) as an Independent Director of the Company, to hold
office up to June 11, 2020 (“first term”).
The Human Resources, Nomination and Remuneration Committee
(the ‘HRNR Committee’) of the Board of Directors, on the basis
of the report of performance evaluation, has recommended
re-appointment of Shri Raminder Singh Gujral 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 Raminder
Singh Gujral 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 Raminder Singh
Gujral 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 Raminder Singh Gujral is not disqualified from being
appointed as a director in terms of Section 164 of the Companies
Act, 2013 (“the Act”), and has given his consent to act as a director.
The Company has also received declaration from Shri Raminder
Singh Gujral 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 Raminder Singh Gujral fulfils
the conditions for appointment as an Independent Director as
specified in the Act and the Listing Regulations. Shri Raminder
Singh Gujral is independent of the management.
Details of Shri Raminder Singh Gujral are provided in the
“Annexure” to the Notice, pursuant to the provisions of (i) Listing
Regulations and (ii) Secretarial Standard on General Meetings
(“SS-2”), issued by the Institute of Company Secretaries of India.
He shall be paid remuneration by way of fee for attending meetings
of the Board or Committees thereof or for any other purpose 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 Raminder Singh Gujral
setting out the terms and conditions of appointment is available
for inspection by the members at the registered office of the
Company.
Shri Raminder Singh Gujral is interested in the resolution set out
at Item No. 6 of the Notice with regard to his re-appointment.
Relatives of Shri Raminder Singh Gujral 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.
Item No. 7
Based on the recommendation of the Human Resources,
Nomination and Remuneration Committee, the Board of Directors
of the Company appointed, pursuant to the provisions of Section
161(1) of the Companies Act, 2013 (“the Act”), and the Articles
of Association of the Company, Smt. Arundhati Bhattacharya
(DIN: 02011213) as an Additional Director, to hold office as an
Independent Director of the Company for a term of 5 (five)
consecutive years with effect from October 17, 2018.
In accordance with the provisions of Section 149 read with
Schedule IV to the Act, appointment of Independent Directors
requires approval of the members.
Smt. Arundhati Bhattacharya is not disqualified from being
appointed as a director in terms of Section 164 of the Act and has
given her consent to act as a director.
445
Governance 184 ‒ 257Management Review47 ‒ 183Corporate Overview1 ‒ 46Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. NOTICE
The Company has also received declaration from Smt. Arundhati
Bhattacharya that she 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”).
Item No. 8
The Board of Directors has, on the recommendation of the Audit
Committee, 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, 2020 as per the following details:
In the opinion of the Board, Smt. Arundhati Bhattacharya fulfils
the conditions for appointment as an Independent Director as
specified in the Act and the Listing Regulations. Smt. Arundhati
Bhattacharya is independent of the management and possesses
appropriate skills, experience and knowledge.
Details of Smt. Arundhati Bhattacharya are provided in the
“Annexure” to the Notice, pursuant to the provisions of (i) Listing
Regulations and (ii) Secretarial Standard on General Meetings (“SS-
2”), issued by the Institute of Company Secretaries of India. She
shall be paid remuneration by way of fee for attending meetings
of the Board or Committees thereof or for any other purpose 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 the letter of appointment of Smt. Arundhati Bhattacharya
setting out the terms and conditions of appointment is available
for inspection by the members at the registered office of the
Company.
Smt. Arundhati Bhattacharya is interested in the resolution set
out at Item No. 7 of the Notice with regard to her appointment.
Relatives of Smt. Arundhati Bhattacharya 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 Ordinary Resolution set out at Item No. 7
of the Notice for approval by the members.
446
1.
2.
3.
4.
5.
6.
7.
8.
Sr.
No.
Name of the Cost
Auditor
Industry
Diwanji & Co.
Electricity, Chemicals and
Composite Solution
K. G. Goyal & Associates Chemicals
V. J. Talati & Co.
Chemicals, Oil & Gas and
Polyester
Textiles and Electricity
Polyester, Chemicals,
Petroleum and Gasification
Polyester
Chemicals
Oil & Gas and Chemicals
Lead Cost Audit Fees
Kiran J. Mehta & Co.
Suresh D. Shenoy
V. Kumar & Associates
Dilip M. Malkar & Co.
Shome & Banerjee
Shome & Banerjee,
Lead Cost Auditor
Total
(In `)
Cost Audit
Fees
10,00,000
3,53,000
9,51,000
4,20,000
9,31,000
6,00,000
7,33,000
9,49,000
8,00,000
67,37,000
In accordance with the provisions of Section 148 of the Companies
Act, 2013 (“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 for the
remuneration payable to the Cost Auditors for the financial year
ending March 31, 2020 by passing an Ordinary Resolution as set out
at Item No. 8 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. 8
of the Notice for ratification by the members.
By Order of the Board of Directors
K. Sethuraman
Group Company Secretary and Chief Compliance Officer
Mumbai, July 3, 2019
Registered Office:
3rd Floor, Maker Chambers IV, 222, Nariman Point,
Mumbai 400 021, India
CIN: L17110MH1973PLC019786
Website: www.ril.com E-mail: investor.relations@ril.com
Tel.: +91 22 3555 5000 Fax: +91 22 2204 2268
Reliance Industries Limited | Integrated Annual Report 2018–19 ANNEXURE TO THE NOTICE DATED JULY 3, 2019
Details of Directors retiring by rotation / seeking appointment / re-appointment at the Meeting
Shri Pawan Kumar Kapil
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, 2019
Relationship with other Directors / Key Managerial Personnel
Number of meetings of the Board attended during the financial year
(2018-19)
Directorships of other Boards as on March 31, 2019
Membership / Chairmanship of Committees of other Boards as on
March 31, 2019
Smt. Nita M. 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, 2019
Relationship with other Directors / Key Managerial Personnel
Number of meetings of the Board attended during the financial year
(2018-19)
Directorships of other Boards as on March 31, 2019
Membership / Chairmanship of Committees of other Boards as on
March 31, 2019
73 years
Chemical Engineer
Vast experience in petroleum industry. Please refer Company’s website:
www.ril.com for detailed profile.
In terms of Section 152(6) of the Companies Act, 2013, Shri Pawan
Kumar Kapil who was re-appointed as Whole-time Director at the
Annual General Meeting held on July 21, 2017, is liable to retire by
rotation.
` 4.17 crore (for remuneration details, please refer the Corporate
Governance Report)
As per existing approved terms and conditions
May 16, 2010
58,300 equity shares of ` 10/- each
Not related to any Director / Key Managerial Personnel
6
Nil
Nil
56 years
Commerce Graduate from Mumbai University, Diploma in Early
Childhood Education
Smt. Nita M. Ambani is a businesswoman, educationist, philanthropist
and a strong proponent of sports. She is the Founder & Chairperson
of Reliance Foundation (RF), which has touched the lives of over 26
million people across India, through initiatives in Rural Transformation,
Health, Education, Sports for Development, Disaster Response,
Arts, Culture & Heritage and Urban Renewal. In recognition of her
outstanding contribution to education, sports and other social sector
development areas, Smt. Nita M. Ambani has received many awards
and honours. Please refer Company’s website: www.ril.com for detailed
profile.
In terms of Section 152(6) of the Companies Act, 2013, Smt. Nita M.
Ambani who was appointed as a Non-executive Director at the Annual
General Meeting held on June 18, 2014, is liable to retire by rotation.
` 1.72 crore (for remuneration details, please refer the Corporate
Governance Report)
As per existing approved terms and conditions
June 18, 2014
67,96,292 equity shares of ` 10/- each
Spouse of Shri Mukesh D. Ambani and not related to any other
Director / Key Managerial Personnel
7
• Reliance Foundation
• EIH Limited
• Football Sports Development Limited
• Reliance Foundation Institution of Education and Research
Nil
447
Governance 184 ‒ 257Management Review47 ‒ 183Corporate Overview1 ‒ 46Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. NOTICE
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, 2019
Relationship with other Directors / Key Managerial Personnel
Number of meetings of the Board attended during the financial year
(2018-19)
Directorships of other Boards as on March 31, 2019
Membership / Chairmanship of Committees of other Boards as on
March 31, 2019
67 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.
As per the resolution at Item No. 5 of the Notice convening this
Meeting read with explanatory statement thereto, Shri P.M.S. Prasad is
proposed to be re-appointed as a Whole-time Director.
` 10.01 crore (for remuneration details, please refer the Corporate
Governance Report)
As per the resolution at Item No. 5 of the Notice convening this Meeting
read with explanatory statement thereto and the resolution at Item No.
12 passed by the shareholders at the Annual General Meeting held on
June 18, 2014.
August 21, 2009
6,00,000 equity shares of `10/- each
Not related to any Director / Key Managerial Personnel
7
• 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
• Risk Management Committee – Member
TV18 Broadcast Limited
• Audit Committee – Member
• Nomination and Remuneration Committee – Member
• Corporate Social Responsibility Committee – Member
• Stakeholders’ Relationship Committee – Member
• Risk Management Committee – Member
Reliance Commercial Dealers Limited
• Nomination and Remuneration Committee – Chairman
• Corporate Social Responsibility Committee – Member
Viacom 18 Media Private Limited
• Corporate Social Responsibility Committee – Member
448
Reliance Industries Limited | Integrated Annual Report 2018–19 Shri Raminder Singh Gujral
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, 2019
Relationship with other Directors / Key Managerial Personnel
Number of meetings of the Board attended during the financial year
(2018-19)
Directorships of other Boards as on March 31, 2019
Membership / Chairmanship of Committees of other Boards as on
March 31, 2019
65 years
BA (Economics Honours), LLB, MBA (IIM-Ahmedabad) and MA (Fletcher
School, US)
Vast experience in taxation and administration. 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 Raminder Singh Gujral is
proposed to be re-appointed as an Independent Director
` 1.93 crore (for remuneration details, please refer the Corporate
Governance Report)
As per the resolution at Item No. 6 of the Notice convening this Meeting
read with explanatory statement thereto and the resolution at Item No.
11 passed by the shareholders at the Annual General Meeting held on
June 18, 2014
June 12, 2015
7,000 equity shares of ` 10/- each
Not related to any Director / Key Managerial Personnel
7
• Adani Power Limited
• Adani Power (Mundra) Limited
Adani Power Limited
• Audit Committee – Member
• Nomination and Remuneration Committee – Chairman
Adani Power (Mundra) Limited
• Audit Committee – Member
• Nomination and Remuneration Committee – Member
449
Governance 184 ‒ 257Management Review47 ‒ 183Corporate Overview1 ‒ 46Financial Statements258 ‒ 439Notice 440 ‒ 450Connecting everyone. Connecting everywhere. Connecting everything. The Jio Revolution. 63
Post Graduate in English Literature from Jadavpur University,
West Bengal
Over 40 years as a banker (Past Chairman of State Bank of India
from 2013 to 2017). Please refer Company’s website: www.ril.com for
detailed profile.
As per the resolution at Item No. 7 of the Notice convening this Meeting
read with explanatory statement thereto, Smt. Arundhati Bhattacharya
is proposed to be appointed as an Independent Director
` 0.82 crore (for remuneration details, please refer the Corporate
Governance Report)
As per the resolution at Item No. 7 of the Notice convening this Meeting
read with explanatory statement thereto and the resolution at Item No.
11 passed by the shareholders at the Annual General Meeting held on
June 18, 2014
October 17, 2018
Nil
Not related to any Director / Key Managerial Personnel
3 (appointed w.e.f. October 17, 2018)
• Piramal Enterprises Limited
• CRISIL Limited
• Wipro Limited
• Swift India Domestic Services Private Limited
Piramal Enterprises Limited
Risk Management Committee – Financial Services - Member
Wipro Limited
Audit, Risk and Compliance Committee - Member
By Order of the Board of Directors
K. Sethuraman
Group Company Secretary and Chief Compliance Officer
NOTICE
Smt. Arundhati Bhattacharya
Age
Qualifications
Experience (including expertise in specific functional area) / Brief
Resume
Terms and Conditions of 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, 2019
Relationship with other Directors / Key Managerial Personnel
Number of meetings of the Board attended during the financial year
(2018-19)
Directorships of other Boards as on March 31, 2019
Membership / Chairmanship of Committees of other Boards as on
March 31, 2019
Mumbai, July 3, 2019
Registered Office:
3rd Floor, Maker Chambers IV, 222, Nariman Point,
Mumbai 400 021, India
CIN: L17110MH1973PLC019786
Website: www.ril.com E-mail: investor.relations@ril.com
Tel.: +91 22 3555 5000 Fax: +91 22 2204 2268
450
Reliance Industries Limited | Integrated Annual Report 2018–19 ROUTE MAP
Marine Lines
Railway Station
r i n
M a
r
e
v
o
s F l y
e
e L i n
M
a
h
a
r
s
h
i
K
a
r
v
e
R
o
a
d
i d
j
s
G o l M a
M E T R O
B i g C i n e m a
M
a
h
a
r
s
h
i
Q u e e n s R o a d
K
a
r
v
e
R
o
a
d
B o m b a y H o s p i t a l
& M e d i c a l
R e s e a r c h C e n t r e
M
a
h
a
t
m
a
B i r l a M at u s h r i
S a b h a ga r
G
a
n
d
h
i
R
o
a
d
U A H K h a n M a r g
A a y a k a r
B h a v a n
M
a
h
a
r
s
h
i
K
a
r
v
e
R
o
a
d
S
i
r
V
i
t
h
a
l
d
a
s
T
h
a
c
k
e
r
s
e
y
M
a
r
g
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
a
h
a
p
alik
a M
arg
M
a
h
a
p
alik
i k a
M a h a p a l
l d i n g
B u i
a M
arg
d
a
o
D N R
Chatrapati Shivaji
Terminus
(CST)
Azad
Maidan
d
a
o
D N R
Churchgate
Railway Station
Flora Fountain
THIS PAGE INTENTIONALLY LEFT BLANK.
ATTENDANCE SLIP
CIN: L17110MH1973PLC019786
Registered Office: 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021
Website: www.ril.com; e-mail: investor .relations@ril.com; Tel.: +91 22 3555 5000; Fax: +91 22 2204 2268
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-SECOND ANNUAL GENERAL MEETING (POST-IPO) of the members of the Company held on
Monday, August 12, 2019 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 3555 5000; Fax: +91 22 2204 2268
Name of the member(s):
Registered address:
e-mail Id:
Folio No. / *Client Id:
*DP Id:
I/We being the member(s) of
shares of Reliance Industries Limited, hereby appoint:
1)
2)
3)
of
of
of
having e-mail id
having e-mail id
having e-mail id
or failing him
or failing him
and whose signature(s) are appended below as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the
FORTY-SECOND ANNUAL GENERAL MEETING (POST-IPO) of the members of the Company to be held on Monday, August 12, 2019 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/We 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, 2019 and the Reports of the Board of
Directors and Auditors thereon
b) Audited Consolidated Financial Statement for the financial year ended March 31, 2019 and the Report of
Auditors thereon
2. Declaration of dividend on equity shares
3. Appointment of Shri Pawan Kumar Kapil, a Director retiring by rotation
4. Appointment of Smt. Nita M. Ambani, a Director retiring by rotation
5. Re-appointment of Shri P.M.S. Prasad as Whole-time Director
6. Re-appointment of Shri Raminder Singh Gujral 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. on August 8, 2019 to 5:00 p.m. on August 11, 2019.
The procedure to be followed for Web Check-in is as follows:
a.
b.
c.
d.
e.
f.
Log on to https://agm.karvy.com and click on “Web Check-in for General Meetings (AGM/EGM/CCM)”.
Select event / name of the company: Reliance Industries Limited
Pass through the security credentials, viz., DP ID / Client ID / Folio no. entry, and PAN No & “CAPTCHA” as directed by the system and click on
“Submit” button.
The system will validate the credentials. Then click on “Generate my Attendance Slip” button.
The Attendance Slip in PDF format will be generated.
Select the “PRINT” option for direct printing or download and save for printing the Attendance Slip.
Members completing Web Check-in successfully need not queue up at the registration counter(s) and are advised to use the dedicated counter(s)
being made available at the venue of 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. Appointment of Smt. Arundhati Bhattacharya as an Independent Director
8. Ratification of the remuneration of the Cost Auditors for the financial year ending March 31, 2020
Signed this..................... day of..................2019
Signature of shareholder
Affix a
Revenue
Stamp
Signature of first proxy holder
Signature of second proxy holder
Signature of third proxy holder
Notes:
1)
This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the
Company, not less than forty-eight hours before the commencement of the Meeting.
2) A proxy need not be a member of the Company and shall prove his identity at the time of attending the Meeting.
3) A person can act as a proxy on behalf of members not exceeding fifty and holding in the aggregate not more than 10% of the
total share capital of the Company carrying voting rights. A Member holding more than 10% of the total share capital of the
Company carrying voting rights may appoint a single person as proxy and such person shall not act as a proxy for any other
person or shareholder.
** 4) This is only optional. Please put a ‘√’ in the appropriate column against the resolutions indicated in the Box. If you leave the
‘For’ or ‘Against’ column blank against any or all the resolutions, your proxy will be entitled to vote (on poll) at the Meeting
in the manner he/she thinks appropriate.
5) Appointing a proxy does not prevent a member from attending the Meeting in person if he / she so wishes. When a Member
6)
appoints a proxy and both the Member and proxy attend the Meeting, the proxy will stand automatically revoked.
In the case of jointholders, the signature of any one holder will be sufficient, but names of all the jointholders should be
stated.
7) This form of proxy shall be signed by the appointer or his attorney duly authorised in writing, or if the appointer is a body
corporate, be under its seal or be signed by an officer or an attorney duly authorised by it.
8) This form of proxy will be valid only if it is duly completed 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
2018-19
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 3555 5000; Fax: +91 22 2204 2268
Name : .....................................................................................e-mail id : ..........................................................................................
Address : .............................................................................................................................................................................................
DP ID. : ................................................................................... Client ID. : ..........................................................................................
Folio No. : ...........................................................................................................................................................................................
(in case of physical holding)
No. of equity shares held : ................................................................
Signature of Member
Excellent
Very Good
Good
Satisfactory
Unsatisfactory
Annual Report
Management’s Discussion
and Analysis Report
Business Responsibility
Report
Report on Corporate Social
Responsibility
Corporate Governance
Report
Board’s Report
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
Contents
Presentation
Presentation
Contents
Presentation
Contents
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:
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 Fintech Private Limited
Karvy Selenium Tower B, Plot No. 31-32, Gachibowli,
Financial District, Nanakramguda,
Hyderabad - 500 032
Fold
“As the world migrates from fossil fuels to renewable energy, we will further maximise this Oil to
Chemicals conversion and upgrade our fuels to high value petrochemicals. This up-gradation will
be implemented in a phased manner over the next decade to meet the rapidly increasing demand
for petrochemicals, in India and the region. The hydrocarbon business is thus poised for robust
value creation and exciting times ahead.”
Mukesh D. Ambani
JAMNAGAR EXPANSION PROJECT
3.5 million
cubic metres
of concrete used.
Equivalent to
13 Burj Khalifas
4,60,000 MT
of steel used.
Equivalent to
59 Eiffel Towers
~ 1,50,000
people
peak manpower
mobilised
1,200 million
construction
man-hours
14 million
engineering
man-hours
6,300 kms
length of piping used.
Equivalent to 2x the
distance between
Kashmir and
Kanyakumari
REFINERY OFF-GAS
CRACKER
PETCOKE
GASIFICATION
DOWNSTREAM
EXPANSIONS
• In January 2018, RIL announced
• Petcoke gasification project, one of the
• RIL expanded the paraxylene (PX)
successful commissioning of the world’s
first ever and largest Refinery Off Gas
Cracker (ROGC) complex of 1.5 MMTPA
capacity
largest ‘Clean Fuel’ projects in the world,
uniquely turned Jamnagar refineries
‘bottom-less’ by converting low-value
petroleum coke into syngas
production capacity significantly, which
made RIL the world’s largest PX producer
• RIL added capacities of PTA, MEG, PFY and
PET, reinforcing itself as world's largest
integrated Polyester player
T
h
e
J
i
o
R
e
v
o
l
u
t
i
o
n
.
C
o
n
n
e
c
t
i
n
g
e
v
e
r
y
o
n
e
.
C
o
n
n
e
c
t
i
n
g
e
v
e
r
y
w
h
e
r
e
.
C
o
n
n
e
c
t
i
n
g
e
v
e
r
y
t
h
i
n
g
.
I
N
T
E
G
R
A
T
E
D
A
N
N
U
A
L
R
E
P
O
R
T
2
0
1
8
-
1
9
Continue reading text version or see original annual report in PDF
format above