For those who dare to dream,
there is a whole world to win.
Shri Dhirubhai H. Ambani
Founder Chairman
Naye India ka
Naya Josh
As a resilient India steps into a new decade, it is
emerging as an economic hub that will play a major
role in defining the new normal for the world. At
Reliance, we are aligned to the aspirations of a New
India, where economic growth and social development
go hand-in-hand. Our vision for the India of tomorrow
is complemented by scaling of technologies that can
positively impact millions of Indians. We are focusing
our energies on India’s rising consumer ecosystem
and are devising platforms that can truly uplift the
quality of life of every Indian. With an undying passion
that resonates with the spirit of India, we continue to
contribute positively to the nation’s growth and fulfill a
billion dreams.
Highlights
FY 2019-20
Consolidated Turnover
`6,59,205 CRORE
5.4%
Consolidated Net Worth
`3,75,734 CRORE
15.7%
Consolidated EBITDA
(before exceptional items)
`1,02,280 CRORE
10.4%
y-o-y growth
About this Report
The Reliance Integrated Annual Report has
been prepared in alignment with the Integrated
Reporting Framework laid down by the
International Integrated Reporting Council
(IIRC). 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.
Other reports and information at
www.ril.com
Quarterly results and analyst presentations
https://www.ril.com/InvestorRelations/
FinancialReporting.aspx
Financial statements of subsidiary companies
https://www.ril.com/InvestorRelations/
Downloads.aspx
Inside this Report
CORPORATE OVERVIEW
MANAGEMENT REVIEW
2 Reliance at a Glance
4 Key Performance Indicators
Letter to Shareholders
6
10 Board of Directors
12 Naye India ka Naya Josh
14 Jio Platforms
16 COVID-19 Response
Approach to ESG
18
20 Reliance Foundation
22 Awards and Accolades
23 Company Information
24 Financial Highlights
26 Management Discussion and
Analysis
GOVERNANCE
180 Business Responsibility Report
182 Independent Assurance on
Sustainability Disclosures
184 Corporate Governance Report
212 Board’s Report
Naye India ka
Naya Josh
PG 12
COVID-19
Response
PG 16
FINANCIAL STATEMENTS
Standalone
235 Independent Auditors’ Report on
Financial Statements
244 Balance Sheet
245 Statement of Profit and Loss
246 Statement of Changes in Equity
248 Cash Flow Statement
250 Notes to the Financial
Statements
Consolidated
313 Independent Auditors’ Report on
Consolidated Financial Statements
326 Consolidated Balance Sheet
327 Consolidated Statement
of Profit and Loss
328 Consolidated Statement of
Changes in Equity
330 Consolidated Cash Flow Statement
332 Notes to the Consolidated
Financial Statements
410 Salient Features of Financial
Statements of Subsidiaries/
Associates/Joint Ventures
SHAREHOLDER INFORMATION
418 Notice of Annual General Meeting
• Members’ Feedback Form 2019-20
PG 12
Scan the QR Code on your smart device to view
the Integrated Annual Report online at
https://www.ril.com/ar2019-20/index.html
Our Approach
to ESG
PG 18
Reliance at a Glance
Bringing alive a billion dreams
Reliance is India’s largest and most profitable private sector company. Reliance continues 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.
Creating Value for All Stakeholders
Investors and
Shareholders
First Indian company to cross
`10 TRILLION
in market capitalisation
Retains strong domestic and
international credit rating
Employees
1,95,618
Direct employment
1.1+ CRORE
Man-hours of training imparted
Government and
Regulatory Authorities
HIGHEST PAYER
Of customs and excise duty
in the private sector
`1,15,461 CRORE
Contribution to the National
Exchequer this year
Local
Communities
`1,022 CRORE
CSR expenditure during
the year
3.6 CRORE
Lives touched since inception
Environment
Customers and Suppliers
2.2+ CRORE
Saplings planted till date
9.9+ CRORE M3
Rainwater harvesting capacity
created since inception
Unparalleled access to
diversified products and
highest quality 5G-ready
digital platform
Reinforcing local
manufacturing and
procurement
Value Added Statement (Consolidated)
Value added is defined as the value created by the activities of a business and its employees
FY 2019-20
`2,27,365 CRORE
FY 2018-19
`2,18,163 CRORE
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
Total Value Added
FY 2019-20
FY 2018-19
62,675
30,280
14,075
3,852*
1,022
1,15,461
2,27,365
56,919
27,749
12,488
3,852
904
1,16,251
2,18,163
Value Drivers for Reliance
INNOVATION AND R&D
SCALE AND TECHNOLOGY
PLATFORMS
PG 140
PG 134
• 140 patents granted during
the year
• 900+ researchers and
scientists
• R&D expenditure –
`2,538 crore
• Sustaining strong track
record of performance –
fastest growing retailer
India’s largest mobile data
network
•
• World’s largest refinery at a
• Bio-innovation and circularity
single location
• Software as a Service
(SaaS) based platforms
• Enterprise data lake
• Analytics and
data science engines
• Enterprise integration
capabilities
• Among the Top 10 producers
for key petrochemicals
PG 134
PG 140
Our Businesses
Retail
Digital
Services
Retail
Media and
Entertainment
`1,62,936 CRORE
`9,654 CRORE
India’s largest retailer by reach,
scale, revenue and profitability
`68,462 CRORE
`22,517 CRORE
`5,357 CRORE
`617 CRORE
Jio has a future proof all-IP data
network with the latest 4G LTE
technology
Network18 is one of India’s
most diversified Media and
Entertainment platform
Refining and
Marketing
Petrochemicals
Exploration and
Production
`3,87,522 CRORE
`24,461 CRORE
RIL continued to outperform
Singapore complex margin
with US$5.7/bbl premium
`1,45,264 CRORE
`30,933 CRORE
Owns and operates one of the
most integrated petrochemicals
facilities globally
`3,211 CRORE
`353 CRORE
Upstream portfolio includes
operations in deepwater
acreages and the CBM block
2
All figures in ` crore
* Excluding dividend on partly paid shares
Revenue
EBITDA
3
Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh
Key Performance Indicators
Scaling new heights
Profit and Loss
Metrics
Balance Sheet
Metrics
Shareholder
Metrics
TURNOVER
` crore
PROFIT AFTER TAX
` crore
25.1% CAGR*
EARNINGS PER SHARE
`
NET WORTH
` crore
BOOK VALUE PER SHARE
`
DEBT EQUITY RATIO
MARKET CAPITALISATION
` crore
30.4% CAGR*
DIVIDEND PER SHARE
`
`6,59,205 CRORE
`44,324 CRORE
5.4%
11.3%
`70.7
5.7%
`3,75,734 CRORE
15.7%
`715.1
9.5%
0.74
`7,05,212 CRORE
`6.5
,
5
0
2
9
5
6
,
,
2
1
2
5
2
1 6
3
7
0
3
,
,
,
4
* CAGR since IPO
^ Before exceptional items
4
2
3
,
4
4
7
3
8
9
3
,
3
9
9
4
3
,
.
7
0
7
.
8
6
6
.
9
0
6
8
9
7
9
8
,
,
2
,
4
4
6
4
2
3
,
,
4
3
7
5
7
3
,
1
.
5
1
7
3
.
3
5
6
.
6
5
9
4
5
7
0
.
4
7
0
.
4
7
0
.
,
6
9
9
3
6
8
,
,
3
2
2
9
5
5
,
,
2
1
2
5
0
7
,
.
5
6
.
5
6
.
0
6
y-o-y growth
* CAGR since IPO
y-o-y growth
Consumer Business Metrics
Reliance Foundation
Social Metric
Innovation Metric
Towards Nation Building
RETAIL STORES
nos.
11,784
RETAIL AREA
million sq. ft.
28.7
JIO SUBSCRIBERS
million
387.5
CUMULATIVE REACH
crore
3.6
HSE EXPENDITURE
` crore
`668 CRORE
R&D EXPENDITURE
` crore
`2,538 CRORE
CONTRIBUTION TO
NATIONAL EXCHEQUER
` crore
`1,15,461 CRORE
4
8
7
,
1
1
5
1
4
0
1
,
3
7
5
7
,
.
7
8
2
2
2
.
7
7
1
.
5
7
8
3
.
7
6
0
3
.
6
6
8
1
6
3
.
.
6
2
.
0
2
4
All figures are consolidated except consumer business metrics and Reliance Foundation.
All figures are consolidated except consumer business metrics and Reliance Foundation.
5
2018-192018-192018-192018-192017-182017-182017-182017-182019-202019-202019-202,53886,9422019-20^2018-192017-18^2019-20^2018-192017-182019-206686644402,3771,8242018-192017-182019-202018-192018-192018-192018-192017-182017-182017-182017-182019-202019-202019-202019-202018-192017-182019-202018-192017-182019-202018-192017-182019-201,16,2511,15,4612018-192017-182019-20Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh Letter to Shareholders
Partnering our way forward
Dear and Esteemed Fellow
Shareowners,
At the outset, it is my pleasant
duty to inform you that recently,
your Company has successfully
completed the Rights Issue of
₹53,124 crore. It was oversubscribed
1.59 times, cumulating to an overall
commitment of over ₹84,000 crore.
With feelings of pride and humility,
I would like to let you know that
this was the largest Rights Issue
in the last 10 years globally by a
non-financial institution, and the
largest ever in India. Your Company
thus created a new landmark in the
history of India’s capital market.
One of its significant features was that the
public portion was also subscribed 1.22
times, reflecting their widespread and
unwavering confidence in RIL’s vision of
the future. The Rights Entitlement (RE) was
actively traded with the prices always being
higher than the intrinsic value and these
healthy premia were a reflection of the
broad-based interest in the Rights Issue.
I convey my profuse and profound thanks
to all of you, both domestic and foreign
public shareholders, for your overwhelming
response to the Rights Issue.
The success of RIL’s Rights Issue becomes
all the more significant when seen in the
context of the prolonged nationwide
lockdown necessitated by the COVID-19
pandemic. It is a vote of confidence, by
both domestic and foreign investors, in the
intrinsic strength of the Indian economy.
I have no doubt that the Indian economy
will bounce back to follow a high-growth
trajectory in the times to come.
I dedicate the success of the
Rights Issue to our Founder and timeless
source of inspiration and guidance,
Shri Dhirubhai H. Ambani, who pioneered
people-oriented investment culture in
India. He taught us to remember, always,
that you are Reliance’s biggest source of
strength and that we must treasure your
trust as our greatest asset. I am therefore
both delighted and humbled by your
extraordinary show of confidence in the
future of Reliance.
We have recently raised over `1,68,818
crore through investments by global tech
investors into Jio Platforms of `1,15,694
crore and the Rights Issue of `53,124
crore. The combined capital raised has no
precedence globally in such a short time.
Both of these are also unprecedented
in Indian corporate history and have
set new benchmarks. This is even more
remarkable that this was achieved
amidst a global lockdown caused by the
COVID-19 pandemic.
Along with the stake sale to BP in the
petro-retail JV, the total fund raise is in
excess of `1,75,000 crore. Our net debt
was `1,61,035 crore, as on 31st March 2020.
With these investments, RIL has now
become net debt-free.
Dear Shareowners,
During these extraordinary times of
the COVID-19 pandemic, our Company
has been contributing positively to the
social and financial well-being of all our
stakeholders, above all, to the common
people of India. Value of human life is of
utmost importance, and this fundamental
principle continues to guide our business
and philanthropic activities. We have
come together as an organisation, with the
combined strengths of Reliance Industries,
Reliance Retail, Reliance Jio, Reliance Life
Sciences, Reliance Foundation and all the
members of the Reliance family, to deploy
a sustainable and resilient response to
this global pandemic. Our multifarious
activities, and our widely publicised motto,
6
#CoronaHaaregaIndiaJeetega, have won
much appreciation from the people, the
media, and the authorities at the central,
state and local levels.
Even as we help the nation battle this
crisis, we remain committed to growing
our traditional and new businesses, which
are guided by our long-term vision of a
prosperous Digital India.
During FY 2019-20, Reliance executed
on the next phase of its growth journey,
forging transformative partnerships
across businesses. Recognising the
pivotal role of Reliance Jio in India’s digital
transformation, global technology giants
Microsoft and Facebook have partnered
with us. With Facebook, the strategic
focus of the partnership is India’s Micro,
Small and Medium Enterprises (MSMEs),
farmers, small merchants and Small and
Medium Enterprises (SMEs) in the informal
sector. Additionally, the partnerships
will empower people and enterprises
seeking state-of-the-art digital services.
Marquee technology-focused investors
have also endorsed our strategic direction
with significant equity investments into
Jio Platforms Ltd.
In the Energy businesses, Reliance is
working to complete the contours of a
strategic partnership with Saudi Aramco.
The partnership gives our refineries access
to a wide portfolio of value-accretive crude
grades and enhanced feedstock security
for a higher oil-to-chemicals conversion.
In the fuel retail business, Reliance and
BP formed a new JV to grow the retail
service station network and aviation fuels
business across India.
Our Consumer businesses continue to
establish new milestones every year,
with Reliance Retail and Jio collectively
having grown by 49.3% y-o-y of the
consolidated EBITDA. We delivered a
robust performance in our Oil-to-Chemicals
(O2C) business despite the weak global
economic environment and volatility in
energy markets. Our consolidated EBITDA
crossed the ₹1,00,000 crore mark, a first
by an Indian company.
The global economy grew at 2.4% in
CY 2019, slowing from 3.0% in CY 2018
amid global trade war, tariff-related
uncertainties and Brexit. The COVID-19
crisis has further impacted the slowdown.
The Indian economy grew by 3.8% in
FY 2019-20, remaining one of the fastest
growing major economies in the world.
Industrial activities remained healthy in
the beginning of the year, but saw some
weakness later. Auto sales suffered
due to weak credit conditions, demand
softness, and change in regulatory norms.
However, services credit averaged at a
healthy 10% y-o-y growth even as credit
growth deteriorated.
In a volatile environment, Reliance
recorded consolidated net profit of
₹44,324 crore (US$5.9 billion) during the
year, registering a growth of
11.3% y-o-y (before exceptional items
on account of COVID-19). Our consumer
businesses further strengthened their
leadership positions and recorded robust
growth on all operating and financial
parameters during the year. Both Reliance
Retail and Reliance Jio continue to work
towards providing superior products and
services to Indian consumers. Our O2C
business delivered sustained earnings
due to its integrated portfolio, cost
competitiveness, feedstock flexibility and
product placement capabilities.
The strong financial performance also
reflected the increasing contribution
of consumer businesses in Reliance’s
earnings. Consumer businesses now
account for 35% of our consolidated
segment EBITDA.
Retail business continues to scale new
heights, achieving important milestones
during the year – achieving a turnover
of `1,62,936 crore and a store count of
11,784. We are witnessing incredible growth
and strong traction across consumption
baskets, on the back of unmatched service
and value proposition.
It is heartening to see India embrace the
new possibilities of digital life. Reliance
Jio continues to add subscribers at a rate
unprecedented in the telecom world. With
387.5 million mobile data subscribers (as
of March 31, 2020), Reliance Jio has truly
become the digital lifeline of Indians.
RELIANCE RETAIL
Reliance Retail continues to grow in scale,
driven by new store expansions across the
geography, improving store throughput
and favourable product mix. Operating
leverage is resulting in the release of strong
operating cash flows to continue making
requisite investments to secure future
readiness and delivering profitable growth.
Roll-out of the Digital Commerce initiative
will open up further growth opportunities
for the organised retail business, leveraging
the best of our consumer and digital
platforms. Reliance Retail and WhatsApp
have entered into a commercial partnership
agreement to further accelerate Reliance
Retail’s Digital Commerce business on the
JioMart platform using WhatsApp and to
support small businesses on WhatsApp.
Reliance Retail has the largest customer
franchise for over 125 million registered
customers who cherish all its unique
store concepts. Every week, Reliance
Retail serves millions of customers who
patronise our stores.
DIGITAL SERVICES
Reliance Jio has been the key catalyst in
creating the broadband data market in
India. It is now the #1 ranked mobile telecom
operator in the country by both Adjusted
Gross Revenue (AGR) and subscribers.
Building on this success, Reliance Jio
is rolling out its state-of-the-art wireline
services across homes and enterprises.
All this will help lay a strong foundation for
offering platform-based digital services.
India is the second-largest smartphone
market in the world after China, with
7
Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh Letter to Shareholders (contd)
approximately 450 million unique
smartphone users. Over the past two years,
JioPhone has successfully transitioned
approximately 100 million erstwhile feature
phone (2G) users to the 4G network.
However, there are still millions of 2G phone
users in India, who cannot use the Internet
and are hence excluded from enjoying the
fruits of digital life. This highlights the urgent
need for India to transition fully from the
2G era into the 4G era and beyond, and the
opportunity Jio has in this transformation.
Jio’s success in building technology
specifically for India and its ability to
proliferate across the country has attracted
global technology leaders – Facebook and
Microsoft—to forge partnerships with it.
RIL, Jio Platforms and Facebook Inc. signed
binding agreements for an investment
of `43,574 crore by Facebook into Jio
Platforms. This partnership is aimed at
accelerating India’s all-round development,
fulfilling the needs of Indian people and
the Indian economy. The joint focus will
be to digitally enable and empower India’s
60 million MSMEs, 120 million farmers, 30
million small merchants and millions of
SMEs in the informal sector, in addition to
empowering people seeking various digital
services. Last year, we announced our
partnership with Microsoft. The aim of these
partnerships is to enhance the adoption of
leading technologies such as data analytics,
Artificial Intelligence (AI), cognitive services,
Blockchain, Internet of Things (IoT), and
edge computing among SMEs to make
them ready to compete and grow, while
helping accelerate technology-led GDP
growth in India and driving adoption of
next-gen technology solutions at scale.
REFINING AND MARKETING
Global economic uncertainty and trade
tensions impacted oil demand, which
reached its lowest level since 2011, even
while the global oil supply grew. Despite
the global downturn, RIL continued to
outperform Singapore complex margins
with a premium of US$5.7/bbl, significantly
above its 5-year average. Our Petro-retail
segment outperformed the industry with
y-o-y growth of 9.8% in retail diesel and
14.7% in retail gasoline volume.
8
FY 2019-20 revenue from the Refining
and Marketing (R&M) segment declined
by 1.6% y-o-y to `3,87,522 crore and
segment EBITDA decreased by 6.1%
y-o-y to `24,461 crore. The R&M segment
performance was impacted due to lower
price realisations due to fall in crude prices
and weaker product margins, particularly for
transportation fuels.
PETROCHEMICALS
The Petrochemicals segment continues
to harness the power of chemistry to
bring smiles to our customers and end
consumers. FY 2019-20 witnessed
volatile energy price environment, which
echoed in petrochemical feedstock and
product prices. Global macro factors
such as trade barriers, excess capacities,
geo-political uncertainties and regulatory
pressure, among others, weighed on
demand and price, resulting in decline in
petrochemicals margins.
FY 2019-20 revenue from the
Petrochemicals segment decreased by
15.6% to `1,45,264 crore due to lower
price realisations with weaker demand in
well-supplied markets. Petrochemicals
segment EBITDA was at `30,933 crore,
down due to lower margins in key products
— Paraxylene (PX), Monoethylene Glycol
(MEG), Polyethylene Terephthalate (PET),
Polypropylene (PP) and Polyethylene (PE).
OIL AND GAS
Development of R-Cluster, Satellite Cluster
and MJ fields — three projects in KG-D6
are on track to monetise discoveries.
These projects will utilise the existing gas
production infrastructure of KG D6 block.
Further, this infrastructure can act as a hub
for development of any discovery from
contiguous areas in future. Combined
production from these three projects is
expected to significantly reduce India’s
import dependence and enhance India’s
energy security. The peak production
from these three fields is expected to
reach 1 BCFe per day in 2023, about 15%
of India’s projected demand that year. We
also progressed on the second phase of
development activities at our domestic Coal
Bed Methane (CBM) blocks to enhance
production from these fields.
ROBUST CASH FLOWS AND
BALANCE SHEET
During the year, Reliance generated a
record EBITDA of ₹1,02,280 crore, up 10.4%
y-o-y, and its net profit of ₹44,324 crore, up
11.3% y-o-y. (before exceptional items on
account of COVID-19).
Reliance continues to tie up new financing
as well as refinance its existing loans as part
of its ongoing liability management exercise.
Reliance was awarded Best Issuer (Corporate)
– South Asia by The Asset, Asia’s leading
financial publication for issuers and investors.
During the year, RIL issued €405 million
Schuldschein. RIL’s inaugural Schuldschein
was tied up as a combination of fixed and
floating rate notes and a combined average
tenor of over five years. RIL is the first
non-European domiciled borrower and the
first Asian corporate to enter this traditionally
German-centric debt market utilising a broad
marketing strategy. This transaction was the
largest syndicated Schuldschein issuance by a
non-European company and the largest in the
Oil & Gas sector globally.
RIL also tied up two Export Credit Agency
(ECA) supported financing — US$200
million and JPY5.30 billion Korea Trade
Insurance Corporation (KSure) supported
financing — along with
€341 million direct facility from
Export-Import Bank of Korea (KEXIM) and
US$365 million facility guaranteed by KEXIM.
Our diversified earnings streams and
conservative Balance Sheet place
Reliance at an advantageous position to face
the ongoing macro challenges. We are
fully committed on our investment plans in
our consumer businesses and new
initiatives. We are at the doorsteps of a huge
opportunity and our Rights Issue and all other
equity transactions will strengthen Reliance
and position us to create substantial value for
all our stakeholders in the years to come.
SUSTAINABILITY
We are committed to making continuous
improvements across the Triple Bottom Line
(People, Planet and Profit) and enabling
positive change in our society. Our ability to
manage, utilise and transform the six capitals
– natural capital, human capital, manufactured
capital, intellectual capital, financial capital,
and social and relationship capital – is
the key to creating value for our multiple
stakeholders. In our relentless pursuit of
excellence, noteworthy capital investments
were undertaken, which led to the
resource optimisation and enhancement of
operational efficiency. We are committed to
becoming a leader in circular economy and
are 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 bring
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
these testing times of COVID-19, Reliance
Foundation is running the world’s largest
food-distribution programme to serve the
ones worst hit by the pandemic.
COVID-19 PANDEMIC RESPONSE
We have been tirelessly working on a
multi-pronged prevention, mitigation,
adaptation and ongoing support strategy
with the government and civil society to
beat this pandemic. From hospitals and
equipment to catering to everyday needs
such as hunger and safety, we have
mustered all our resources to serve our
people and our country.
As soon as the COVID-19 crisis surfaced
in our country, Reliance Foundation set up
India’s first dedicated 100-bed COVID-19
hospital in Mumbai in just two weeks,
and is expanding the capacity to 250
beds. India’s frontline warriors needed
Personal Protective Equipment (PPE) in
this battle against COVID-19. So, we swiftly
established a unit in Silvassa to mass
produce high-quality PPEs. We produce
1 lakh PPEs per day and are the largest
producer of high-quality PPEs in India.
To further extend our services to those in
need, we launched Mission Anna Seva to
provide meals and support marginalised
communities and frontline warriors across
the nation. So far, RF has provided over
5 crore nutritious meals through ration kits,
food coupons and cooked meals across
17 states and a Union Territory of India.
This is the single largest meal distribution
programme ever undertaken in the world by
a corporate foundation.
During the crisis, Reliance Retail is working
to provide essential supplies every day to
millions of Indians through our stores and
home deliveries across over 200 cities.
Reliance Jio continues to provide seamless
connectivity in this time of distress and
help India fight COVID-19 through the use
of technology: enabling work-from-home,
learn-from-home, and health-at-home for
Indians; enabling continuity of service for
lower-end users of JioPhone; Government
of India’s Corona Helpline and Reliance
Foundation’s COVID India tool.
To ensure the health and well-being of our
employees and their families, we have set
up several initiatives such as the nationwide
emergency response infrastructure that
is available 24x7. We have also created
JioHealthHub app for free virtual video
consultation with all of our doctors and
developed resources for mental health,
emotional well-being, yoga, wellness,
nutrition and psychological guidance.
CONCLUSION
We are in a rapidly changing world where
digital connectivity, abundance of data
and intelligent harnessing of data are
reshaping value creation models across
verticals. Despite the volatility, in the
economic environment, we continue to
improve and evolve consistently, fostering
an entrepreneurial mindset across the
organisation. Overall, we have delivered
yet another year of robust performance,
achieving remarkable success across
our businesses.
At Reliance, our purpose has been to
solve the big problems before India and
the world. We started with the purpose of
clothing millions of Indians, ensuring that
every Indian gets a decent quality of life,
and then solving the problem of energy.
As we grew, we addressed India’s bigger
problems. With no prior experience, we
entered organised retail. Despite the
odds, we had the tenacity to stay and to
be persistent. With Jio, we brought India
into the Digital Age by connecting billions
of Indians with world-class and affordable
digital services. If we trace our history,
we have always embraced the future
with boldness, and have both inspired
and empowered future generations to
succeed by becoming entrepreneurial,
setting ambitious goals, taking more
risks and innovating constantly in their
enterprises. As we usher in the next
decade, we accept the responsibility as
custodians of the future.
Our vision is to build a New Reliance for a
New India. Our mission is to GROW INDIA,
AND GROW WITH INDIA. Your tremendous
vote of confidence in the Rights Issue
has yet again convinced us that you fully
endorse this vision and mission. Reliance’s
foundational trust-based relationship with
you has consistently spurred us to achieve
more. I assure you that Reliance will achieve
more in its ongoing Golden Decade than
it did in the previous four decades. As we
begin our journey in a new financial year,
we rededicate ourselves to the task of
contributing our utmost to India’s inclusive
and accelerated growth, propelled by
the adoption of digital technologies.
This will improve the lives of 1.3 billion
Indians and make India a leading DIGITAL
NATION in the world.
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. 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
June 20, 2020
9
Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh Board of Directors
Shri Mukesh D. Ambani
Chairman and Managing Director
Smt. Nita M. Ambani
Non-Executive Director
Dr. Shumeet Banerji
Non-Executive Director
Smt. Arundhati Bhattacharya
Non-Executive Director
C
Shri Yogendra P. Trivedi
Non-Executive Director
Prof. Dipak C. Jain
Non-Executive Director
Shri K. V. Chowdary
Non-Executive Director
Shri Nikhil R. Meswani
Executive Director
M M M
M M
C
CC
M
M
M
M
M
M M M
Dr. Raghunath A. Mashelkar
Non-Executive Director
Shri Adil Zainulbhai
Non-Executive Director
Shri Hital R. Meswani
Executive Director
Shri P. M. S. Prasad
Executive Director
M
MM
M
CC
M
C
M
M M
M M
Shri Raminder Singh Gujral
Non-Executive 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
Shri Pawan Kumar Kapil
Executive Director
10
11
M M
C Chairman M Member
M
Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh NAYE INDIA KA NAYA JOSH
LOW RES IMAGE
Better yields
for those who
feed us
Jio Krishi App, Aerial Technology
As a resurgent India embraces the future,
our products and services will help create a
New India.
As a company which is ‘Made in India’, ‘Made
for India’ and ‘Made by Indians’, we have
always aligned our businesses with national
goals and priorities, with a vision to make
India self-reliant, strong and prosperous.
With a core focus on catering to the consumer
economy, Reliance is investing forward by
harnessing the power of new technologies to
usher a better tomorrow for every Indian.
With a New India,
stands a New Reliance.
Easier learning
for the makers
of tomorrow
JioMeet, Embibe
Ease of doing business
for every Indian
JioPOS Lite, JioMoney
Unbeatable leadership
in the Indian
consumer space
Successfully executed the
largest-ever Rights Issue
despite challenges posed
by country-wide lockdown
due to COVID-19 pandemic
Quicker access
to effective
healthcare
JioHealthHub, JioMeet
Enhancing the
quality of life of
Indians
JioMart, AJIO
12
Trusted by millions of
customers, investors and
other stakeholders
Partnership with global
leaders to bring the best
for India
Unmatched
connectivity for
everyone
Jio4G, JioPhone
13
Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh Reliance Industries Limited
Integrated Annual Report 2019-20
Corporate
Overview
Management
Review
Governance
Financial
Statements
Notice
Jio Platforms
Laying the foundations
for a Digital Society in India
The world around us is being exponentially transformed through technology. This global
revolution is driven by digital technologies that enable the creation, transmission, processing and
consumption of information.
Jio Platforms is creating Total Digital Solutions that dramatically improve the quality of lives for the
citizens, and create global competitiveness for our businesses – small, medium and large alike.
Jio Platforms – a Total Solutions Approach
1
SERVING ALL CUSTOMER SEGMENTS
Consumers
Merchants
Micro, Small and
Medium Businesses
Large
Enterprises
2
SOLUTIONS FOR INDUSTRY ECOSYSTEMS
Telecom
Financial
Services
Healthcare
Commerce
Education
Media and
Gaming
Agriculture
Smart City,
Govt-to-Citizen
Manufacturing
Hospitality
14
14
Naye India Ka Naya Josh
3
CONNECTING EVERYONE AND EVERYTHING, EVERYWHERE
4G
5G
Wireless Broadband,
Narrowband Internet of Things
Optical Fiber Based Home and
Business Broadband
4
CAPABILITY ACROSS DIGITAL TECHNOLOGIES
Devices and
Operating System
Cloud
Computing
Big Data
AR/VR
Internet
of Things
Blockchain
Artificial
Intelligence
Super-
computing
Robotics
Drones
5
GLOBALLY VALIDATED VALUE CREATION
Jio’s Total Solutions Approach, inclusive business models
and world-class digital capabilities have been validated by investments
from leading global partners.
This would place Jio Platforms Limited among the Top 5 listed companies in India by market
capitalisation within just three and half years of launch of commercial services.*
Facebook
Silver Lake
Vista
General Atlantic
KKR
Mubadala
*Events after the reporting period
43,574
5,656
11,367
6,598
11,367
9,094
Silver Lake and Co-investors
4,547
Abu Dhabi Investment Authority
5,684
JIO PLATFORMS
LIMITED
TPG
L Catterton
PIF
TOTAL
4,547
1,895
11,367
1,15,694
Figures in ` crore
15
15
Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh COVID-19 Response
Managing a black swan event,
the Reliance way
Business Response
SAFETY AND PEOPLE FIRST
• Daily COVID-19 symptom
checker
• Seamless transition to
Work from Home (WFH)
• Remote onboarding
of new employees
• Multiple health initiatives for
employees such as virtual
medical consultations, yoga
sessions and guidance
on mental health
ALIGNMENT OF BUSINESSES WITH SOCIAL NEEDS
• Augmented India’s COVID-19
testing capabilities with
3,500 tests per day with
priority access to RIL
employees and family
• CSIR-IIIM and RIL to
develop RT-LAMP based
test for COVID-19
• Protective gear to on-ground
staff and frontline warriors
• RIL’s work in fight against
COVID-19 resonated most as
per LinkedIn and Twitter
DIGITAL PLAYBOOK AND TECHNOLOGY TO AID
RAPID ECONOMIC RECOVERY
• Launched JioMart
• AJIO — Digital fashion and
lifestyle platform
• Launched JioMeet
• Innovative channels of recharge
(e.g., ATM, JioPOS Lite)
• Doorstep delivery of fuel —
1,000+ sites operational
IMAGE TBU
AGILITY AND FAST TRACK EXECUTION
• Fund raising from marquee global technology investors
• Largest-ever Rights Issue in India (`53,124 crore)
• Quick adaptability to WFH model
• SMART Point — Ideation to launch in 45 days
RETAIL
DIGITAL SERVICES
REFINING AND MARKETING
• JioMart services launched in 200 cities
• Enhanced safety and hygiene
standards across stores
• Launched JioMeet — Work from
home, Learn from home, Health at
home — Stay Productive, Stay Safe
Worked non-stop to keep the wheels of the
economy moving, ensuring India remains
secure in fuel and energy
Jio associate programme on
JioPOS Lite initiated — 1 million
agents onboarded for recharges
and new acquisitions
Strengthened partnership
and provided uninterrupted
services to kiranas
Ensured operation of >98%
of the grocery stores
JioMart order flow 4X times
pre-lockdown period
• Double data add-on pack
• Government of India’s
Corona Helpdesk powered
by Haptik Chatbot
55+ million messages by
20+ million users
PETRO RETAIL
5.5+ lakh litres of free fuel
provided to 14,000 notified
emergency response vehicles
• Digital Warriors kept the network
uptime 100% and helped customers
through virtual call centres
• Traffic surge handled with
network elasticity
PETROCHEMICALS
• Uninterrupted supply of key packaging
raw materials for essentials
• Unit at Silvassa is equipped to produce
1 lakh high-quality PPEs per day
Strategic investments in
Jio Platforms from marquee
investors crosses `1 lakh crore
Digital Commerce and
omni-channel capacities
to handle 10X times home
delivery of pre-lockdown
Philanthropic
Response
`556 CRORE
Contribution to the PM CARES
fund and various state and
other relief funds
RELIANCE FOUNDATION
HOSPITAL
• Nation-wide emergency response
infrastructure (24*7)
• Set up India’s first dedicated
COVID-19 hospital in partnership with
BMC at Seven Hills
Seven Hills Hospital
RELIANCE FOUNDATION
• Embarked on a multi-sortie airlift
mission to expedite delivery of PPEs,
e.g., airlifted 10 lakh surgical masks
• Mission Anna Seva
• Live teaching through virtual school
platform at DAIS
5+ CRORE
Meals distributed to
marginalised communities and
frontline workforce
IMAGE TBU
Retail warriors
Digital warriors
Fuelling of emergency response vehicles
16
17
Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh Our Approach to ESG
Integration of Environmental,
Social and Governance
into business models
Environmental
Circularity ingrained within businesses
Petcoke
to high-value
products
Plastic waste
to value
Retail
e-waste –
EPR*
Enabler
to the digital
economy
Social
Reliance Sustainable
Development Goals
• Managing Environmental
Impacts
• Clean Energy
• Waste Management
• Water Management
• Asset Utilisation
• Product Stewardship
*Extended Producer’s Responsibilities (EPR)
Reliance Sustainable
Development Goals
• Safety
• Health
• Opportunity and Diversity
• Customer Satisfaction
• Supply Chain Management
• Community Development
Frameworks considered
Updates for the year
Frameworks considered
Updates for the year
UN SDGs
• Algae-to-Oil (A2O) plant to create
• E-waste collection and extended
UN SDGs
renewable bio-crude
• RCAT-HTL technology converts any
organic waste into renewable crude
• CO2 capturing piloted from refinery
and power plant flue gas
• Circular economy
1. R|Elan products and circular design
challenge
2. ReRoute converting plastic waste
to road
3. Large PET recycling capacities
4. Recycling waste polyester and
PET to create high-value fabric,
chemicals and products
producer responsibility authorisation
for Reliance Retail
• Fuel cells and lithium ion batteries
deployed in telcom infrastructure
• Several water and energy
conservation initiatives during the year
• Environment and climate-related risks
and opportunities addressed and
mitigated
• Environmental performance oversight
by the Board (HSE Committee)
National Missions
• Skill India
• Clean India
• Make in India
• Healthy India
• UNGC
• UNGP
• NVG-SEE
• NGRBC
• SROI
• SHCP
• IIRC
• `668 crore HSE expenditure
• Health consultations provided through
JioHealthHub app and daily COVID-19
symptom checker for all employees
• Diversity with increasing women in
Reliance Retail
• A group-wide millennials with 51.6%
under the age of 30
• Employee training — anytime,
anywhere (through Coursera/Lynda/
Linkedin Learning Partnership)
• Resilient data security and customer
data privacy systems in place
• Strong relationships and regular
engagement with stakeholders
• 37,000+ villages impacted through
continual rural transformation
initiatives
• Developed community leaders for
sustained impact and built water-
secure villages
• Medical facilities for employees
• Non-Discrimination and Human Rights
nationally
Policy
• Education and sports efforts for
society
PG 114
PG 122
PG 156
Reliance Policies
• Code of Conduct
• Whistle Blower Policy
• Vigil Mechanism
• Ethics and Compliance
Task Force (ECTF)
Committees and Oversight
Key Initiatives and Interventions
Board Committees monitor timely
performance and progress made of ESG
parameters:
• Health Safety and Environment
Committee
• Corporate Social Responsibility
• Board diversity in skill, industry and gender
• Sustainability oversight and performance monitoring by the Board
• Strong business ethics frameworks and policies, including Whistle Blower
Policy and Data Security Policy
• Supplier Code of Conduct ensuring suppliers adhere to fundamental values
• Sustainability Reporting and disclosure practices with external assurance
Reliance Values and Behaviours
Committee
• Human Resources, Nomination and
Remuneration Committee
PG 184
19
National Missions
• Clean India
• Make in India
• Digital India
• TCFD
• GRI
• API/IPIECA
• NCP
• Traceability
• CDP (for Jio)
• IIRC
Governance
18
Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh Reliance Foundation
Pioneering change
with inclusive growth
Reliance Foundation was instituted with a vision to build a stronger and inclusive
India. CSR activities of RIL are carried out under the aegis of Reliance Foundation.
Led by Smt. Nita M. Ambani, Reliance Foundation plays a catalytic role in
addressing the nation’s development challenges through innovative and sustainable
solutions, with the aim of facilitating transformative changes to ensure overall well-
being and higher quality of life for all.
RURAL TRANSFORMATION
Creating sustainable livelihood solutions and
addressing poverty, hunger and malnutrition
1.09 CRORE
Livelihoods augmented,
since inception
9.9+ CRORE M3
Of rainwater harvesting
capacity created, since
inception
HEALTH
38,500 FARMERS
Have availed trainings in
agriculture and
agri-allied skills since
inception
65,500+ HECTARES
Of land brought under
improved cultivation
Improved nutritional intake of
3+ LAKH children through
anganwadis
894 VILLAGES
Have improved access to
drinking water
Affordable solutions for healthcare through improved
accessibility and awareness
67 LAKH
Health consultations,
since inception
75,000
Women were diagnosed
and treated for anaemia,
since inception
81,500+
Children screened for
malnutrition, since
inception
18,500+
Corneal transplants
for vision care, since
inception
100%
Success rate for liver
transplant programme
EDUCATION
Access to quality education, training and skill enhancement
2 LAKH
Underprivileged children were
provided with quality education
43,000 STUDENTS
And over 1,000 teachers
empowered by Reliance
Foundation digital
classrooms
12,776
Dhirubhai Ambani
Scholarships disbursed
15,645 STUDENTS
Enrolled in 14 Reliance
Foundation Schools
SPORTS FOR DEVELOPMENT
Promoting sports among youth to facilitate their skills and development
2.15 CRORE
Children reached through
the sports initiative
since inception
1.1 CRORE
Students engaged by
integrating basketball
into the curriculum
90 LAKH
Children, adolescents and youth
reached out through Reliance
Foundation Youth Sports
79
Reliance Foundation Young Champs
scholarships awarded to develop
football skills
Reliance Foundation Jr. NBA scaled to
13,500 SCHOOLS
across 21 states and Union Territories
DISASTER RESPONSE
Managing and responding to disasters
10+ LAKH PEOPLE
Supported with relief
activities in 14 states in
the aftermath of disasters
5.6 LAKH
People received early
warning/post-disaster
advisories
Capacity building of 700+
individuals for better response
to emergency situations
Technology-enabled
support to organisations
ARTS, CULTURE AND HERITAGE
Protection and promotion of India’s art, culture and heritage
Supported the annual concert ‘Abbaji’ organised by Ustad Zakir Hussain
Reliance Foundation partnered with Jio Mumbai Academy of Moving Image (MAMI) and
Star to encourage movies with social messages
https://www.ril.com/DownloadFiles/CSR201920.pdf
20
20
Naye India Ka Naya Josh
21
Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh Awards and Accolades
Recognised among the best
Iconic Business Leader of the
Decade at the IBLA
Reliance Retail
Winner of Annapoorna Food Retail Award
100+ national and international awards and recognitions
for Jio in 2019
LEADERSHIP
• Shri. Mukesh D. Ambani was recognised
as the Iconic Business Leader of
the Decade at the Indian Business
Leader Awards (IBLA).
• Smt. Nita Ambani has been named
among the Top 10 iSportconnect’s
Influential Women In Sport 2020 by the
largest global private network of Sport
Business Executives.
TECHNOLOGY, PATENTS,
R&D AND INNOVATION
• Reliance awarded for exceptional
presentation in UNIPOL PE Global
Technology Conference 2019 in USA.
• DTA refinery was awarded ‘India
Manufacturing Excellence Award 2019’ in
High Platinum Category & Future Ready
Factory Award by Frost and Sullivan.
RETAIL
• Reliance Retail received the Annapoorna
Food Retailer of the Year Award 2019
conferred by Retailers Association of
India (RAI) in association with Federation
of Indian Chamber of Commerce and
Industry (FICCI).
• Reliance Retail featured in the Global
100 Top Retailers – the only Indian
company to do so.
• Reliance Retail has topped the
list of 50 fastest growing retailers
globally in Deloitte’s Global Powers of
Retailing Report, 2020.
DIGITAL SERVICES
• Reliance Jio won the ‘Best Data Service
Innovation – Emerging Market’ at Global
Carrier Awards.
• Reliance Jio won Gold Award for
Excellence in Innovation in Technology
Industry at Asia Pacific Stevie.
• JioPhone was adjudged as ‘Mobile
Device Innovation’ at Global
Telecom Awards.
• Jio was recognised as ‘Best LTE Service
Provider’ and JioPhone as ‘Handset
Innovation of the Year’ at Asia’s Telecom
Excellence Awards.
MEDIA
• CNN News18 won the Exchange4media
News Broadcasting Awards (ENBA) 2019
for ‘Best early prime show (English):
Viewpoint’ and ‘Best late prime time
show (English): News Epicentre’.
HUMAN RESOURCES
• RIL’s culture of open communication
and enabling leadership won it the
Corporate Recognition Award 2019
— the highest corporate honour from
Toastmasters International.
ENERGY AND WATER
CONSERVATION/ EFFICIENCY
• Reliance won the 13th CII National Award
for Excellence in Water Management
2019, in the heavy industry category.
CAPITAL RESOURCES
• Reliance was awarded Best
Issuer (Corporate) – South Asia
by The Asset, Asia’s leading
financial publication for
issuers and investors.
HEALTH, SAFETY AND
ENVIRONMENT
• Reliance was declared ‘Winner’ at
18th Annual Greentech Safety Award
2019 for persistent commitment in the
field of safety.
CORPORATE
SOCIAL RESPONSIBILITY
• RIL was awarded the
Golden Peacock Award for Corporate
Social Responsibility 2019 for
improving the livelihoods of farmers,
fisher-folk and livestock owners through
information services.
SUSTAINABILITY
• Dahej Manufacturing Division, Silvassa
Manufacturing Division and Hoshiarpur
Manufacturing Division awarded Apex
India Environment Excellence Award,
2019 under Platinum Category.
Company Information
BOARD OF DIRECTORS
COMMITTEES
BANKERS
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
Deutsche Bank
The Hong Kong and Shanghai
Banking Corporation Limited
HDFC Bank Limited
ICICI Bank Limited
IDBI Bank Limited
Indian Bank
Indian Overseas Bank
Punjab National Bank
Standard Chartered Bank
State Bank of India
Union Bank of India
REGISTRARS &
TRANSFER AGENTS
KFin Technologies Private
Limited
(Formerly known as Karvy
Fintech Private Limited)
Selenium Tower B,
Plot 31-32, Gachibowli, Financial
District, Nanakramguda,
Hyderabad 500 032
Tel: +91 40 6716 1700
Toll Free No.: 1800 425 8998
(From 9:00 a.m. to 6:00 p.m.)
Fax: +91 40 6716 1680
e-mail: rilinvestor@kfintech.com
Website: www.kfintech.com
Chairman and
Managing Director
Mukesh D. Ambani
Non-Executive Directors
Yogendra P. Trivedi
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K. V. Chowdary
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
Group Company Secretary
and Chief Compliance
Officer
K. Sethuraman
Joint Company Secretary
and Compliance Officer
Savithri Parekh
Auditors
D T S & Associates LLP
S R B C & CO LLP
Solicitors & Advocates
Kanga & Co.
REGISTERED OFFICE
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai 400 021
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
K. V. Chowdary
Stakeholders’ Relationship
Committee
Yogendra P. Trivedi (Chairman)
Arundhati Bhattacharya
K. V. Chowdary
Nikhil R. Meswani
Hital R. Meswani
Risk Management
Committee
Adil Zainulbhai (Chairman)
Dr. Shumeet Banerji
K. V. Chowdary
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
K. V. Chowdary
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
43rd Annual General Meeting (Post-IPO) on Wednesday, July 15, 2020 at 2:00 p.m. through Video Conferencing / Other Audio-Visual Means
22
23
Corporate OverviewManagement ReviewFinancial StatementsNotice Governance Reliance Industries Limited Integrated Annual Report 2019-20Naye India Ka Naya Josh
Financial Highlights
RIL STANDALONE
US $
(` in crore, unless otherwise stated)
Value of Sales and
Services (Revenue)
Total Income
Earnings Before
Depreciation, Finance
Cost and Tax Expenses
(EBDIT)
Depreciation and
Amortisation
Exceptional Items
Profit for the Year
Equity Dividend (%)
Dividend Payout
Equity Share Capital
Reserves and Surplus
Net Worth
Gross Fixed Assets
Net Fixed Assets
Total Assets
Market Capitalisation
Number of Employees
Contribution to National
Exchequer
million FY 2019-20 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
2,58,651
2,51,241
48,266
3,65,202
3,39,792
4,01,302
2,65,041
4,01,583
3,40,814
3,15,357
3,71,119
48,295
8,775#
3,65,421
66,394#
3,94,323
67,676
3,13,555
59,961
2,73,750
51,965
2,59,062
47,168
3,49,535
40,323
4,10,238
39,813
3,79,117
38,785
3,45,984
39,811
2,61,703
41,178
1,286
9,728
10,558
9,580
8,465
8,590
8,488
8,789
9,465
11,394
13,608
561
4,084
-
509
838
55,276
48,961
65,639
44,200
1,28,053
93,202
-
4,245
30,903
65
3,852
6,339
4,18,245
3,70,465
4,96,657
3,34,436
9,68,912
7,05,212
26,488
-
35,163
60
3,554
6,339
3,98,983
3,44,128
4,76,591
3,14,745
7,75,745
8,63,996
28,967
-
33,612
110
3,255
6,335
3,08,312
3,13,114
4,52,492
3,00,447
6,17,525
5,59,223
29,533
-
31,425
-
-
3,251
2,85,062
2,83,288
4,30,093
2,87,319
5,46,746
4,28,909
24,167
-
27,384
105
3,095
3,240
2,50,758
2,53,998
3,93,117
2,58,448
4,81,674
3,38,703
24,121
-
22,719
100
2,944
3,236
2,12,923
2,16,159
3,11,815
1,90,316
3,97,785
2,66,847
24,930
-
21,984
95
2,793
3,232
1,93,842
1,97,074
2,64,281
1,51,122
3,67,583
3,00,405
23,853
-
21,003
90
2,643
3,229
1,76,766
1,79,995
2,32,270
1,28,864
3,18,511
2,49,802
23,519
-
20,040
85
2,531
3,271
1,62,825
1,66,096
2,05,493
1,21,477
2,95,140
2,44,757
23,166
-
20,286
80
2,385
3,273
1,48,267
1,51,540
2,21,252
1,55,526
2,84,719
3,42,984
22,661
7,248
54,842
67,589
56,997
51,399
43,117
33,322
31,374
28,950
28,197
28,719
KEY INDICATORS
Earnings Per Share* (`)
Turnover Per Share* (`)
Book Value Per Share* (`)
Debt : Equity Ratio
EBDIT/Gross Turnover (%)
Net Profit Margin (%)
RONW (%) **
ROCE (%) **
US $ FY 2019-20 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
0.7#
62.0
84.6
790.5
775.3
7.6
463.2
784.4
7.7
0.44:1
0.42:1
-
15.9
18.8
-
7.8
10.9
-
15.5
15.1
-
13.2
17.2
-
70.2
1,053.3
668.0
0.45:1
11.8
6.7
13.4
12.7
55.5#
576.1
584.4
0.62:1^
18.2#
9.6#
11.3#
17.9#
61.2
1,037.8
507.3
0.41:1
11.7
5.9
13.4
11.6
64.8
1,149.5
557.5
0.40:1
10.5
5.7
12.8
11.2
68.0
1,241.7
609.8
0.45:1
9.9
5.5
12.9
11.5
55.5
633.5
542.9
0.40:1
16.9
8.8
13.7
24.9
96.9
817.2
889.0
0.37:1
19.6
11.9
17.1
25.4
53.1
497.8
496.7
0.37:1
19.0
10.7
15.5
28.7
In this Integrated Annual Report, $ denotes US$, unless otherwise stated
US$1 = `75.665 (Exchange rate as on 31.03.2020)
^ Increase primarily on account of Scheme of Arrangement among Reliance Jio Infocomm Limited and certain class of its creditors to transfer certain liabilities to
RIL. Refer note 40.1 of Standalone Financial Statements
* Adjusted for issue of Bonus Shares in 2017-18 in the ratio of 1:1
** Adjusted for CWIP and revaluation
# Before exceptional items
Management Discussion and Analysis
Inside This Section
Yearly Review
26 OVERVIEW
Macro environment –
global and domestic
27 HIGHLIGHTS AND KEY EVENTS
Brief overview of key developments
during the year
28 FINANCIAL PERFORMANCE
AND REVIEW
Financial information (consolidated
and standalone) and discussion
on key parameters
30 BUSINESS PERFORMANCE
Analysis and description of all major
business segments of Reliance
covering brands, strategic advantages
and competitive strengths. The
discussion structure covers the market
environment the business operates in
and how Reliance’s business model
and operational excellence helped
achieve a strong performance
Retail
PG 30
Refining and
Marketing
PG 72
Digital Services
PG 46
Petrochemicals
PG 82
Media
and Entertainment
PG 62
Oil and
Gas Exploration &
Production
PG 96
106 LIQUIDITY AND CAPITAL RESOURCES
Insights including Reliance’s financing strategy, resource
raising, capital and risk management framework
Sustainable Future and Growing Responsibility
109 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, National Missions
and beyond. It reflects performance
and outcome, stewardship, and inter-
dependencies for the broad base of
capitals (natural, human, manufactured,
intellectual, financial, social and
relationship) and communicates the
factors that materially affect the ability
to create value over time
110 STRATEGIC FRAMEWORK
112 THE INTEGRATED APPROACH
Natural Capital and Climate Change
PG 114
169 RELIANCE'S
SUSTAINABILITY
REPORTING JOURNEY
Human Capital and People Connect
170 RISK AND GOVERNANCE
176 AWARDS AND ACCOLADES
179 GLOSSARY
PG 122
Manufactured Capital and
Product Stewardship
PG 134
Intellectual Capital and Innovation
PG 140
Financial Capital and Credit Rating
PG 154
Social and Relationship Capital
and Value Creation
PG 156
24
25
25
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewNaye India Ka Naya Josh
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.
26
Overview
GLOBAL
The global economy grew at 2.4% in
CY 2019, slowing from 3% in CY 2018 amid
global trade war, tariff related uncertainties,
and Brexit. Chinese growth moderated
but held up at 6.1% despite escalation of
trade tensions with the United States (US).
Amidst trade tensions and Brexit related
uncertainty, EU growth also weakened to
1.1%. However, with talks of trade resolution
in second half of 2019, Europe started to
see some recovery in growth. Brexit, which
was a key uncertainty for Europe over the
last two years, also saw resolution towards
end 2019. The US economy remained
relatively strong growing at 2.3%.
Global trade environment remained
challenging due to heightened trade
tensions. However, negotiations between
the US and China since mid-October
resulted in Phase One agreement. Partial
roll-back of some US tariffs in exchange for
Chinese commitments to make additional
purchases of US products mark a de-
escalation of trade tensions.
Oil prices averaged US$61 / bbl in 2019
supported by continued production cuts
and supply constraints from Iran and
Venezuela. Global oil demand growth
declined to 0.8mbpd in 2019, from 1.2 mbpd
in 2018. Oil demand growth continued
to be led by China, India and other
Asian economies.
Global demand for ethylene increased by
4% y-o-y to 167 MMT in 2019. However,
capacity addition across key petrochemical
products significantly outpaced demand
growth, pushing down prices and margins
to multi-year low for these products.
Global growth outlook has changed since
the outbreak of COVID-19. There has been
coordinated global monetary policy easing
and fiscal support from governments. These
policy support measures would act as
cushions offsetting weakness in growth to
some extent . However, global economic
activity is likely to contract in 2020 and
global growth environment will remain
challenging in the short term.
INDIA
The Indian economy grew by 4.2% in
FY 2019-20 still remaining one of the
fastest growing major economies in the
world. Industrial activity remained healthy
in the beginning of the year, but saw
some weakness later. Auto sales suffered
due to weak credit conditions, demand
softness, and change in regulatory norms.
However, services credit averaged at a
healthy 10% y-o-y growth even as credit
growth deteriorated. Despite weak trade
environment amid increasing protectionism,
services exports remained resilient at about
8%. On the rural side, with food prices
firming up, demand saw some recovery with
three-wheeler sales returning to positive
growth in December quarter (+8% y-o-y),
but reversed the recovery in 4Q.
India’s oil demand remained flat in
FY 2019-20 as compared to the previous
year, with consumption-led demand
growth in gasoline (+6.2% y-o-y) and LPG
(+6% y-oy). ATF growth (-3.5% y-o-y) was
subdued as air traffic growth remained
soft, while diesel demand (-1% y-o-y) was
impacted by weaker economic growth.
Domestic demand growth for petrochemical
products was healthy with polymer and
polyester demand growing by 4% and
9.0% respectively.
Thrust on policy initiatives continued.
FY 2019-20 saw consolidation of Public
Sector Banks, which should strengthen the
banking sector. Non-performing loans in the
banking sector have come down to 9.3%
from >10% before FY 2019-20. Resolution
under the Insolvency and Bankruptcy Code
(IBC) is bringing procedural predictability
with higher recovery rates (43% in 2019
vs 14% in 2017). With continued policy
initiatives, India further continued its climb
in the Ease of Doing Business rankings,
climbing up 14 places to reach the 63rd
rank. India is the only major country to
have moved up by 67 places in just 4
years. FY 2019-20 also saw corporate
tax cut being announced, further easing
business environment. Government also
announced significant rebates for new
manufacturing units to attract global supply
chains. Outbreak of COVID-19 would make
growth environment challenging in first
half of FY 2020-21 but liquidity measures
announced by the government should help
provide support.
Domestic data usage and use of digital
platforms continue to gain traction in India.
Reliance Jio has become the second largest
single-country operator in the world. The
extra-ordinary circumstances unfolding
in 2020 has underscored the need for
strong data networks. Increasingly, digital
platforms have become critical for home,
business and school connectivity. Digital
transactions also continue to accelerate
with UPI payments reaching 10% of GDP
from just 0.7% of GDP in FY 2017-18,
while credit card growth continued to be
strong at 24% y-o-y. Similarly, personal
credit remained strong at about 17% y-o-y
reflective of the underlying consumption
demand. While continuing to grow
its organised retail platform, Reliance
Retail is working to integrate producers/
manufacturers, supply chain, small
merchants and consumers in a seamless
digital ecosystem that will benefit all
elements of the retail chain.
Highlights and
Key Events
Reliance executed on the next phase of
its growth journey in FY 2019-20, forging
transformative partnerships across
businesses. In the Energy businesses,
Reliance is working to complete the
contours of a defining strategic partnership
with Saudi Aramco (Aramco). Reliance
and Aramco share a common outlook and
vision on the evolution of the business in
the future with emphasis on higher oil-to-
chemicals conversion. The partnership
gives the refineries access to a wide
portfolio of value accretive crude grades
and enhanced feedstock security. In the
fuel retail business, Reliance and British
Petroleum (BP) formed a new joint venture
to grow the retail service station network
and aviation fuels business across India.
In Digital Services, Reliance is working
with Microsoft to enhance adoption of
leading technologies like data analytics, AI,
cognitive services, blockchain, Internet of
Things, and edge computing among small
and medium enterprises. Microsoft Azure
cloud platform and Technology stack along
with Jio’s connectivity infrastructure provide
Indian enterprises world-class technology
solutions to enhance competitiveness.
Recognising the pivotal role of Jio in
India’s digital transformation, Facebook
has taken an equity stake in Jio Platforms.
The strategic focus of the partnership is
India’s micro, small and medium businesses,
farmers, small merchants and small
and medium enterprises in the informal
sector. Additionally, the partnership seeks
to empower people seeking various
digital services.
Concurrent with the investment, Jio
Platforms, Reliance Retail and WhatsApp
also entered into a commercial partnership
agreement to further accelerate Reliance
Retail’s Digital Commerce business on the
JioMart platform using WhatsApp and to
support small businesses on WhatsApp.
In the current financial year, Reliance
completed its first Rights Issue in 3
decades. It was the largest Rights Offering
by a non-financial company globally in the
last 10-years and enabled participation
of all shareholders in growth businesses
of Reliance. The Rights offering received
an overwhelming response, despite the
challenges presented by the lockdown.
Overall subscription for the issue was at
1.6x, representing a capital commitment of
$11.2bn and public subscription was 1.22x
Through the Covid-19 crisis, Reliance
operated its O2C facilities at near 100%
by shifting products to export markets to
sustain operating rates. Scale economics
along with strong competitive cost
positions across the chain helped Reliance
sustain positive contribution through this
unprecedented phase.
Apart from ensuring safety and well-being
of employees through the pandemic,
Reliance significantly stepped up support
to the Community. The Covid-19 response
included use of facilities for production of
grades and equipment used in medical
applications, steps to support state medical
infrastructure and contributions to social
efforts in helping marginalized communities
and migrant workers.
Reliance is geared to provide products and
services needed by Indian consumers as
the economy emerges from the lock-down.
The partnership between Jio and
Facebook will empower farmers and
small & medium businesses/enterprises/
merchants with various digital services.
27
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewNaye India Ka Naya Josh FINANCIAL PERFORMANCE AND REVIEW
Alok
Agarwal
Srikanth
Venkatachari
Anshuman
Thakur
Saurabh
Sancheti
Lalit
Kasliwal
C. Borar
Dinesh
Thapar
Raj
Mullick
Robust performance for the year reflects benefits of
our integrated Oil to Chemicals (O2C) value chain and
the rapid scale-up of our consumer businesses. For the
year, our O2C businesses reported resilient performance
despite unprecedented macro challenges. Our O2C
business has inherent strengths due to feedstock flexibility
and cost competitive positions across products. The
cost economics also benefitted from the high operating
rates we were able to maintain by leveraging our robust
product placement capabilities. Our O2C business, with
new partnerships, is well poised to pursue growth and
sustainable value creation in the coming years.
Our consumer and technology led businesses continue
to be guided by our obsession to provide the best value
to our customers. Reliance Retail delivered robust
performance with record revenues and EBITDA for the
year. Our digital services business is recognised for
having the nation’s widest 4G wireless network. Jio has
continued on its unprecedented growth journey receiving
overwhelming customer response for best-in-class mobile
connectivity services. On combined basis, retail and digital
services business EBITDA has increased by 49% compared
to previous year.
We are steadfast in our commitment to capital discipline
and financial strength. We remain focused on operating
excellence, executing our growth projects, improving
returns on assets and shareholder value enhancement.
FINANCIAL INFORMATION – CONSOLIDATED AND STANDALONE
Particulars
Value of Sales and Services (Revenue)
EBITDA
Cash Profit
Segment EBIT
Net Profit
Cash and Marketable Securities
Tangible and Intangible Assets (Excluding Goodwill)
Gross Debt
US$1 = `75.665 (Exchange rate as on 31.03.2020)
*Excluding Exceptional Item
Consolidated
FY 2019-20
₹ in crore US$ in billion
87.1
6,59,205
13.5
1,02,280*
9.5
71,623*
9.4
71,294*
5.9
44,324*
23.2
1,75,259
83.5
6,31,505
44.4
3,36,294
FY 2018-19
₹ in crore
6,25,212
92,656
64,478
69,683
39,837
1,36,743
5,65,840
2,87,505
Standalone
FY 2019-20
₹ in crore US$ in billion
48.3
3,65,202
8.8
66,394*
6.2
47,089*
6.3
47,400*
4.6
35,148*
19.2
1,45,535
44.2
3,34,436
34.7
2,62,345
FY 2018-19
₹ in crore
4,01,583
67,676
48,485
54,602
35,163
1,12,302
3,14,745
1,61,720
REVENUE
Reliance achieved consolidated revenue of `6,59,205 crore (US$87.1 billion), an increase of 5.4%, as compared to `6,25,212 crore in
the previous year. Increase in revenue was primarily on account of higher revenue from Consumer Business. Reliance’s consolidated
revenue was boosted by robust growth in retail and digital services business, which recorded an increase of 24.8% and 40.7% in revenue,
respectively as compared to the previous year. Revenues for the Refining and Petrochemical business declined in line with fall in average oil
and product prices for the year.
PROFIT
Consolidated EBITDA for the year increased by 10.4% on a y-o-y basis to `102,280 crore as compared to `92,656 crore in the previous year.
Consolidated EBITDA nearly doubled in the last five years. Profit After Tax (excluding exceptional items) was higher by 11.3% at `44,324 crore
28
(US$5.9 Billion) as against `39,837 crore in
the previous year.
SEGMENT REVIEW
Retail - Reliance Retail continues to grow
in scale, driven by new store expansion
across the geography, improving store
throughput and favourable product
mix. Operating leverage is resulting in
release of strong operating cash flows to
continue making requisite investments for
securing future readiness and delivering
profitable growth. The business continues
to improve customer experience across all
store concepts and focuses on providing
unmatched value proposition, which has
resulted in robust growth in footfalls and
operating metrics. Roll-out of the Digital
Commerce initiative will open up further
growth opportunities for the organised
retail business, leveraging the best of our
consumer and digital platforms.
Organised Retail revenues grew by 24.8%
y-o-y to ` 1,62,936 crore. Segment EBITDA
for FY 2019-20 grew by 55.7% y-o-y to
` 9,654 crore. EBITDA margins improved
130 bps to 6.6% boosting operating
profitability. Reliance Retail further
consolidated its leadership position and is
India’s largest, most profitable and fastest
growing retailer.
Digital Services - Reliance Jio has been
the key catalyst in creating the broadband
data market in India. It is now the #1 ranked
mobile telecom operator in the country by
both Adjusted Gross Revenue (AGR) and
subscribers. Building on this success, Jio
is rolling out its state-of-the-art wireline
services across Homes and Enterprises.
All this will help lay a strong foundation for
offering platform based digital services. To
further facilitate this from the perspective
of business organisation, Jio has
consolidated all its technology capabilities,
investments and connectivity business
into a single holding company called Jio
Platforms Limited.
The business recorded revenues of
` 68,462 crore, as against ` 48,660 crore
in previous year, with year-end subscribers
base at 387.5 million. Reliance Jio reported
strong financial performance for the year.
Segment EBITDA was at `22,517 crore
for the year, as against `15,341 crore
in previous year
The fallout of the global pandemic
impacted commodity markets and prices
in the last quarter of FY 2019-20. Despite
the challenging industry conditions, Oil
to Chemicals (O2C) business delivered a
resilient performance.
Refining and Marketing – Revenue
(including inter segment transfers)
decreased by 1.6% y-o-y to ` 3,87,522
crore (US$51.2 billion). Segment EBITDA
decreased by 6.1% to `24,461 crore (US$3.2
billion). The impact in revenue was because
of lower price realisation in domestic and
export markets due to fall in crude prices.
GRM for FY 2019-20 stood at US$8.9/
bbl, outperforming Singapore complex
margins by US$5.7/bbl.
Petrochemicals – Revenue (including inter
segment transfers) decreased by 15.6%
y-o-y to ` 1,45,264 crore (US$19.2 billion),
primarily due to lower price realisations with
weaker demand in well-supplied market.
Segment EBITDA decreased by 18.3% to
`30,933 crore (US$4.1 billion) due to lower
margins in key products - Paraxylene, MEG,
PET, Polypropylene and Polyethylene.
Oil and Gas – Revenues decreased by
35.8% y-o-y to ` 3,211 crore. Volumes from
domestic upstream fields and US shale
were lower on account of natural decline
and slowdown in development activity.
Segment EBITDA was at `353 crore as
against `1,642 crore in the previous year.
For the year, domestic production (RIL
share) was at 38.8 BCFe, down 34.1% y-o-y
and US Shale production (RIL Share) was
80.4 BCFe, down 14.9% y-o-y basis.
OTHER FINANCIAL HIGHLIGHTS
Other Income was at ` 13,956 crore
(US$1.8 billion) as against ` 8,386 crore in
the previous year, primarily on account of
interest income.
Finance Cost was at ` 22,027 crore (US$2.9
billion) as against ` 16,495 crore in the
previous year. The increase was primarily
on account of higher loan balances,
currency depreciation and lower interest
capitalisation on account of commissioning
of digital projects.
Depreciation (including depletion and
amortisation) was higher by 6.1% to
` 22,203 crore (US$2.9 billion) as compared
to ` 20,934 crore in the previous year.
Increase in depreciation was primarily on
account of capitalisation of Gasification and
digital services projects.
Basic Earnings Per Share (EPS) for the year
ended March 31, 2020 (before exceptional
items) was at ` 70.66 as against ` 66.82
in previous year. Basic Earning Per Share
for the year ended March 31, 2020 (after
exceptional item) was at ` 63.49 as against
` 66.82 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.
Reliance’s fixed assets (excluding goodwill)
stood at ` 6,31,505 crore (US$83.5 billion)
as on March 31, 2020. This includes RIL
Standalone’s fixed assets of ` 3,34,436
crore and balance of ` 2,97,069 crore in its
subsidiaries mainly Reliance Jio, Reliance
Holding USA and Reliance Retail.
Capital Expenditure for the year ended
March 31, 2020 was ` 77,444 crore (US$10.2
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 ` 3,36,294
crore (US$44.4 billion). This includes
standalone gross debt of ` 2,62,345 crore
and balance in key subsidiaries, including
Reliance Holding USA (` 36,254 crore),
Reliance Jio (` 23,242 crore), Reliance
Retail Group (` 4,618 crore), Independent
Media Trust Group (` 3,265 crore), Reliance
Sibur Elastomers Pvt Ltd (` 2,478 crore)
and Hathway Cable and Datacom Limited
(` 1,975 crore).
Cash and Marketable Securities were
at ` 1,75,259 crore (US$23.2 billion)
resulting in net debt at ` 1,61,035 crore
(US$21.2 billion).
RIL’s standalone Revenue for FY 2019-20
was ` 3,65,202 crore (US$48.3 billion), a
decrease of 9.06% on y-o-y basis. Profit
after tax was at ` 30,903 crore (US$4.1
billion) a decrease of 13.2% against ` 35,163
crore in the previous year. Basic EPS on
standalone basis (before exceptional
item) for the year was ` 55.45 as against
` 55.48 in the previous year. Basic EPS on
standalone basis (after exceptional item) for
the year was ` 48.75 as against ` 55.48 in
the previous year.
29
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh Management Discussion and Analysis (contd)
BUSINESS PERFORMANCE
Retail
VISION
MISSION
To be the most admired and
successful organised retail
company in India that enhances
the quality of life of every Indian
• 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
`1,62,936 CRORE
Revenue for FY 2019-20,
growth of 24.8% y-o-y
`9,654 CRORE
EBITDA for FY 2019-20,
growth of 55.7% y-o-y
In-store
brands
Store and service
concepts
Exclusive
partnerships
Consumer Electronics
Consumer Electronics
Fashion & Lifestyle
Fashion & Lifestyle
Grocery
Grocery
30
31
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh Subramaniam V.
Isha
Ambani
Akash
Ambani
Brian
Bade
Damodar
Mall
Akhilesh
Prasad
Anant
Ambani
Shawn
Gray
Darshan
Mehta
Sunil
Nayak
Kaushal
Nevrekar
Ashwin
Khasgiwala
Dinesh
Thapar
Jayant
Bhalerao
Dr. Vinodkumar
Dhanuka
Bijay
Sahoo
Gulur
Venkatesh
FY 2019-20 has been a growth year for Reliance
Retail with all consumption baskets consistently
delivering on business strategy. Current
positioning of the business and the business
momentum is highlighted in the following points:
1. In the backdrop of slowing economy and tepid
consumer sentiment brought out by the onset
of COVID 19, Reliance Retail delivered robust
and competitive performance with steady
margin improvement.
2. Business continues to grow in scale, driven by new
store expansion across the geography, improving
store throughput and favourable product mix.
3. Operating leverage is resulting in release of strong
operating cash flows to continue making requisite
investments to secure future readiness and
delivering profitable growth alongside.
4. Business continues to improve customer
experience across all store concepts and focuses
on providing unmatched value proposition, which
has resulted in robust growth in footfalls and
operating metrics.
5. Reliance Retail is aiming to capture a sizable share
of the large untapped consumption opportunity
in the country through physical stores, digital
platforms and B2B channels.
32
PERFORMANCE
R Revenue (` in crore) P EBITDA (` in crore)
Number of stores
CAGR
2,621
3,245
3,616
7,573
10,415
11,784
56%
64%
35%
R
P
STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH
Rapid execution capabilities
Reliance Retail’s meticulous planning, frugal approach, large scale and
rapid execution has been the major driver of robust growth with capital
efficiency y-o-y. The year has seen launch of over 1,500 stores across
concepts demonstrating Reliance Retail’s superior execution skills.
SMART Point, a neighborhood store concept took less than 45 days
from design conceptualisation to launch during which 18 stores were
opened across Thane, Navi Mumbai and Kalyan in Maharashtra.
Integrated value chain
Reliance Retail’s integrated value chain ensures seamless distribution
across demand markets through supply chain efficiencies. Reliance
Retail’s farm to fork model with interventions at the farm level to
procure fresh fruits and vegetables every day from farmers; fiber
to wardrobe model for fashion & lifestyle, design to install and after
sales service model in consumer electronics are fully integrated value
chains which ensures direct control over product quality with sourcing
benefits and stronger consumer value proposition.
Largest customer franchise
Reliance Retail has the largest customer franchise of over 125
million registered customers who patronise all its diverse store
concepts. Reliance Retail serves millions of customers every week
who visit the stores and make them an important part of their
shopping mission.
Extensive physical reach
Reliance Retail continues to penetrate further into smaller
towns through new store expansion across all store concepts.
Reliance Retail stores enjoy first mover advantage in a
large number of markets which remain underserved by
organised retail.
Exposure to key consumption baskets with fairly
spread revenues
Reliance Retail’s store concepts span across all major consumption
baskets which accounts for over 80% of consumption needs of Indian
households. This enables Reliance Retail to touch and improve the
lives of its consumers across diverse needs.
Partner of choice
Reliance Retail operates the largest portfolio of esteemed
international partner brands.
33
BUSINESS PERFORMANCE: RetailReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh01,31,2501,75,00087,50043,7500FY 2015FY 2016FY 2017FY 2018FY 2019FY 20209,0006,0003,00012,00017,6407842,529 6,201 9,65469,1981,30,5661,62,9361,17933,76585721,075 RELIANCE RETAIL OPERATING MODEL
Design &
Develop
Solutions
stem
n
ig
y
s
s
e
o
D
c
E
Need
Gap &
Planning
Buying
V endor
E c o system
Moving
m
el
n
E cosyste
C han
Selling
Custo m e r
Franc h i s e
Data
Analytics
Buying
Vendor Ecosystem
Comprehensive network
of vendors from farmers to
large enterprises
Channel 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
Providing anytime, anywhere,
shopping experience through
stores, e-com, connected kiosks
and catalogue sales; after
sales service through resQ and
dedicated customer care
Data Analytics
Serving individuals, kiranas,
hotels, restaurants, caterers and
B2B customers; engagement
through loyalty programme,
enriching shopping experience
through consumer insights
Design & Develop
Solutions
Combination of inhouse and
external design support for
product development
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 US$822
billion in FY 2019-20 and is expected to
grow at a CAGR of 10% over next 5 years
to reach US$1,315 billion by FY 2024-25.
The penetration of organised retail market
is estimated at 11% in FY 2018-19 and is
expected to grow to 17% by FY 2024-25E.
The organised retail market is estimated at
US$89 billion in FY 2018-19 and is expected
to grow at a CAGR of 21% over next 5 years
to reach US$230 billion by FY 2024-25E.
BUSINESS OVERVIEW
Reliance Retail is India’s largest and most
successful retailer. In just 14 years of
launch, Reliance Retail has accomplished a
feat which no other retailer has achieved.
Reliance Retail touches every aspect of its
consumers’ life from morning to evening,
food to fashion, items of necessities to
luxuries of life, cities to towns, online to
offline and much more, enabling the ease
of living for every Indian. Reliance Retail is
not only India’s foremost retailer, but it has
emerged as the fastest growing retailer in
the world and features among the top 100
retailers globally1.
Reliance Retail has established its business
across five key consumption baskets of:
a) Consumer Electronics, b) Fashion &
Lifestyle, c) Grocery, d) Petro Retail and
e) Connectivity with deep business moats.
The dimensions of the business span across
11,784 physical retail stores across 7,000+
towns and cities, direct to consumer, Digital
commerce channels and B2B channels
serving millions of Indian consumers
across underserved markets. The adjacent
table sets out the spread of Reliance
Retail’s business.
1Deloitte Global Powers of Retailing 2020
34
Total area
28.7 MILLION SQFT
Total store count
11,784 STORES
West
538
261
2,343
3,142 STORES
7.6 MILLION SQFT
South
337
932
2,094
3,363 STORES
11.3 MILLION SQFT
North
108
566
2,022
2,696 STORES
5.4 MILLION SQFT
East
350 91
2,142
2,583 STORES
4.4 MILLION SQFT
Consumer Electronics
Fashion & Lifestyle
Grocery
Consumption Basket
# of stores
# of stores share
# of Towns and
Cities
FY 2019-20
Footfalls (Cr)
Consumer Electronics
Fashion & Lifestyle
Grocery
Total
* includes stores of partner brands under joint ventures
8,601
2,386*
797
11,784
73.0%
20.2%
6.8%
100.0%
7,000+
450+
180+
7,000+
23
17
24
64
35
BUSINESS PERFORMANCE: RetailReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh
CONSUMER ELECTRONICS
The Consumer Electronics market is
estimated at US$53 billion in
FY 2019-20 and is expected to grow at a
CAGR of 11% over next 5 years to reach
US$91 billion by FY 2024-25. The organised
Consumer Electronics market is estimated
at US$18.2 billion in FY 2019-20 with a
penetration of 34%.
Reliance Retail is India’s largest Consumer
Electronics retailer with an extensive
physical store network. The key proposition
of Reliance Retail’s store concepts is
centered around ‘Service’, ‘Solution’
and ‘Consumer Experience’. Reliance
Digital is an experiential store concept
where consumers can touch, feel, use
and experience the products. Reliance
Digital takes care of entire lifecycle needs
of a consumer right from identifying the
need gap, narrowing down the solution,
suggesting product choices, to pre and
post installation support to the customers
through its service arm resQ.
Reliance Digital is India’s largest big
box retail chain offering wide range of
products across all key categories of
mobiles, computing, household appliances
such as televisions, washing machines,
air conditioners, coolers, refrigerators,
cameras, speakers, and many more.
resQ is India’s only ISO 9001 certified
electronics service brand. With 171 service
centers, 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.
Reliance Digital offers exclusive value
for money products under its own
brands ‘Reconnect’, ‘Jio Phone’ and
‘LYF’, exclusive brands ‘BPL’, ‘Sharp’ and
‘Kelvinator’ under long term collaboration
arrangements and SKUs from all the leading
Consumer Electronics brands. The core
business model of Reliance Digital is to
offer latest, exclusive and sophisticated
products to consumers, in an all under
one roof experiential store environment,
at attractive price points and leverage its
supply chain, partnerships with leading
Consumer Electronics brand partners
and financing partners to offer a win-win
proposition for all.
Jio Stores offers connectivity and mobility
solutions to consumers with over 8,100
stores across 7,000+ towns and cities. Jio
Stores act as an interface offering Reliance
Digital’s catalogue of offerings, through a
‘phygital’ experience to consumers. Close
to 10% of Jio store’s revenues come through
catalogue sales.
A glimpse of how Reliance Retail
approaches consumer electronics
consumption baskets is outlined in the
below infographic:
APPROACH TO BUSINESS – CONSUMER ELECTRONICS
1 Customers needs,
Evolving technology trends,
Upcoming seasons
2 Develop complete solution
based on product, price,
service and experience
3 Planning and working
backwards with sourcing
partners offering exclusive
SKUs, unmatched solutions
7
4 Develop affordability
programs by working
with banks and financing
partners
8
6
1
1
Consumer
Electronics
5
2
4
5 Facilitate “touch, try, feel
and interact” for better
customer experience. Train
customer service associate
for selling personalised
solutions. Develop own
brand products to cross sell /
upsell / add-on solutions
3
6 Keep in mind regional
preferences to offer focused
assortment
7 Comprehensive service
through resQ, Cross sell
resQ Service plans
8 Gather 3600 feedback,
analyse data for
improvements
FASHION & LIFESTYLE
The Fashion & Lifestyle market is estimated at US$139 billion in FY 2019-20 and is expected to grow at a CAGR of 11% over next 5 years
to reach US$233 billion by FY 2024-25. The organised Fashion & Lifestyle market is estimated at US$40 billion in FY 2019-20 with a
penetration of 29%.
Reliance Retail is the largest fashion & lifestyle retailer in India with offerings across all income segments covering value, mainstream,
premium, affordable luxury and luxury. Reliance Retail manages end to end value chain across apparel, footwear, accessories, toys and
much more through bouquet of store concepts. A glimpse of how Reliance Retail approaches fashion & lifestyle business is outlined in the
below infographic
APPROACH TO BUSINESS – FASHION AND LIFESTYLE
1 Customers needs,
Evolving fashion trends,
Trends’ fashion forward
ethos
2 Wider yet regional focus
keeping in mind diverse
customers
7
3 Develop value proposition
based on price expectations
4 Working backwards with
sourcing partners
8
6
1
Fashion and
Lifestyle
5
2
4
5 Focus on value engineering
• To maximise quality
• To minimise cost
• To speed up processes
6 Increase number of drops
per season and offer fresh
fashion across stores for
returning consumers
3
7 Increased customer
following
8 Gather 3600 feedback,
analyse data for
improvements
Trends is the flagship store concept of
Reliance Retail democratising fashion for
millions of Indian consumers. Acceptance
of Trends concept by its consumers has
further helped it to nurture engaging
store concepts of Trends Woman, Trends
Man, Trends Junior and Trends Footwear.
Together, Trends is India’s largest fashion
retail chain operating over 1,400 stores.
Trends predominantly sells own brand
products, which constitute over 70% of its
sales. The core business model of Trends is
dogged upon providing best and latest of
fashion trends to consumers at compelling
price points backed by an integrated value
chain that ensures high quality products
with optimisation from sourcing till delivery
of products to consumers. This approach
ensures early break-even for most Trends
stores and contribute to the overall
profitability of the business. At the same
time, a curated blend of select third-party
brand offerings add to the choices and
comparison for the consumers.
Trends has developed a robust portfolio
of over 20 own brands such as Avaasa,
DNMX, Netplay, Performax, Teamspirit, etc.
to cater to diverse tastes and preferences
of customers. Today, many of these
brands have an annual turnover of over
` 500 crore making them comparable to
many national and international brands
operating in the market.
36
37
BUSINESS PERFORMANCE: RetailReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh RELIANCE RETAIL FASHION PYRAMID
y
r
u
x
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L
l
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d
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u
x
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V
Under the Trends umbrella, Reliance Retail
operates Trends Small Town, which is a
smaller sized store measuring about 5,000
sq. ft. on an average, offering focused range
of products for dressing needs of entire
family. The store concept is addressed to
Tier III and Tier IV towns, where larger sized
quality real estate may be either difficult to
find or may be inefficient to operate. Trends
Small Town concept has been well received
by its customers and has scaled up to 240
stores across 200+ towns in a short time.
Trends Footwear is a family footwear
store concept offering affordable and
fashionable footwear for everyday needs.
The stores offer a range of value for money
merchandise under own brands and a wide
variety of footwear and accessories across
all leading footwear brands.
In addition, Trends operates three apparel
store concepts: Trends Woman, Trends Man
and Trends Junior. These are destination
stores for women, men and kids (aged 0-14
years) respectively and offers apparel,
footwear & accessories in differentiated
store environment.
Project Eve is an experiential women’s
only store concept positioned in the mid
to premium segment. The store offers
apparel, beauty & cosmetics, accessories,
footwear, in-store salon and a café, all
under one roof to address entire wardrobe
needs of a woman.
The Jewellery market is estimated at US$65
billion in FY 2019-20 and is expected to
grow at a CAGR of 11% over next 5 years
to reach US$111 billion by FY 2024-25. The
organised Jewellery market is estimated
at US$20 billion in FY 2019-20 with a
penetration of 31%. Crafted on the pillars
of purity, trust, transparency and quality,
Reliance Jewels is a chain of premium
jewellery stores present across 60+ towns
and cities offering wide variety of fine
jewellery collections.
To cater to the needs of India’s millennials
to Generation-Z, Reliance Retail has
created a curated fashion platform AJIO.
It offers over 2,50,000 styles of curated
collections across own brand and 1,400+
national and international brands. AJIO
provides seamless shopping experience to
customers through e-com website, mobile
app, physical outlets inside Trends, and
endless aisle kiosks.
Reliance Retail operates over 650 stores
across a portfolio of 46 revered exclusive
international partner brands. It has set up,
built and ‘glocalised’ international brands
such as Armani, Diesel, Brooks Brothers,
Marks & Spencer, Muji, Mothercare
and many more.
GROCERY
The Food & Grocery market is estimated
at US$545 billion in FY 2019-20 and is
expected to grow at a CAGR of 9% over
next 5 years to reach US$850 billion by
FY 2024-25. The organised food and
grocery market is estimated at US$21 billion
in FY 2019-20 with a penetration of 3.7%.
Reliance Retail is the largest grocery
retailer in India with a presence of 797
stores across 180+ towns and cities.
Reliance Retail endeavors to bring
extensive selection of fresh produce, items
of daily use and general merchandise
in a modern setting and at an attractive
value proposition. In order to achieve this,
Reliance Retail operates four engaging
store concepts viz. Reliance Fresh, Reliance
SMART, SMART Point and Reliance Market,
delivering benefits of modern shopping
experience to consumers.
Reliance Fresh is the neighbourhood store
offering daily needs and essential items
across fresh foods, staples, FMCG, home
and personal care and much more with
a focus on offering convenience, quality
produce and ensuring availability.
Reliance SMART is a destination store
concept offering wide variety of products
across fresh foods, staples, FMCG, home
and personal care, beauty & cosmetics,
value apparel & footwear, general
merchandise and much more in an all under
one roof setting.
SMART Point, a smaller avatar of SMART
store, is a one stop multi-purpose
store concept housed in residential
neighborhoods offering SMART’s price
promise across all grocery needs, pharmacy
and assisted Digital commerce.
Reliance Market is the wholesale cash and
carry store concept serving households,
kiranas, hotel, restaurants and catering
(HORECA), institutions and B2B member
partners. Reliance Market is the largest
cash and carry chain operating over 52
stores across 46 cities.
Reliance Retail has developed wide
range of own brand products across
various categories such as staples, food
FMCG, home & personal care and general
merchandise. Best Farms, Good Life, Masti
Oye, Kaffe, Enzo, Mopz, Expelz, Home
One, Graphite, RelGlow, among others are
some of the brands that have been well
received by consumers.
The inherent strength of Reliance Retail’s
grocery business model arises from its
farm-to-fork grocery value chain. Reliance
Retail has directly partnered with tens of
thousands of farmers and small vendors
which ensures that quality produce is made
available at its stores through ground level
interventions, supply chain efficiencies,
lower wastages compared with traditional
trade channels, and an agile movement of
produce to consumers, thereby ensuring
shared prosperity.
A glimpse of how Reliance Retail
approaches grocery business is outlined in
the below infographic:
APPROACH TO BUSINESS – GROCERY
1 Customers needs,
Fresh foods, Daily items,
Occasional and seasonal
needs
2 Ensuring availability through
focused inventory planning
3 Partnerships with
7
manufacturers, farmers and
access to mandis for efficient
procurement. Interventions
across the value chain to
ensure quality produce
4 Improve store environment,
carry out focused marketing
campaigns, Train customer
service associates for cross
sell / upsell
8
6
1
Grocery
5
2
4
3
5 Develop own brand products
through vendor ecosystems
to cross sell / upsell
6 Keep in mind regional
preferences to offer focused
assortment
7 Leveraging store network
to deliver products to
channel partners
and doorsteps of the
consumers
8 Gather 3600 feedback,
analyse data for
improvements
38
39
BUSINESS PERFORMANCE: RetailReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh
Technology
transformation of
physical retail
Upward income
mobility to drive growth
across all categories
Millennial and
Generation Z preferences
to shape the market
PETRO RETAIL
Reliance Retail is a leading private sector
petro retail operator with 519 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. The petro outlets offers diesel,
petrol and LPG to its customers with a focus
to serve high quality fuels.
CONNECTIVITY
Reliance Retail works as the Master
Distributor for Jio connectivity services. The
distribution network comprises over 8,100
Jio stores and vast network of retailers
across the country for new customer
acquisition and recharges.
MEGATRENDS AND BUSINESS RESPONSIVENESS
Mega trend
Description
How Reliance Retail is Geared up
“Connectedness” or digitally
influenced consumption
will become the norm
Consumers use digital platforms
for product discovery and pre-
purchase research.
Providing omni-channel experience with
flexibility of pick up and/or return from home/
nearest store. Leveraging wide variety of
media including social media to engage and
influence consumer.
Connecting physical and digital spaces, with
endless aisle kiosks and multiple payment
modes with real-time analytics support
Blending physical and digital
experience to acquire, engage and
serve customers and reduce cost of
operations with positive influence on
revenue and margin
140 million households move into the
middle class and another 20 million
move into the high-income bracket
driving discretionary consumption
Presence across all key consumption baskets
with leaderships in all store concepts. Offering
unmatched value proposition across full
spectrum of products and services.
Business will have richer, more
willing buyers, but these buyers will
be highly informed and make very
specific choices for themselves and
their families.
Catering to tastes and preferences of diverse
nature of customers through engaging store
concepts such as Trends Woman, Trends Man,
and omni-channel presence.
Competition among online
and offline retailers to
partner with Kirana stores
Partnering with Kirana eases last mile
logistics, builds customer connect
and solves hyper-local problem for
online retailers. It adds touchpoints for
offline retailers.
Reliance Retail is establishing its Digital
Commerce Platform to serve consumers
in partnership with traditional retailers.
Launched pilot phase
of JioMart during the year.
FINANCIAL AND OPERATIONAL PERFORMANCE
Parameter
Revenue
EBITDA
EBITDA Margin*
EBIT
EBIT Margin
* EBITDA margin is on net revenue
40
FY 2019-20
(` in crore)
1,62,936
9,654
6.6%
8,263
5.1%
FY 2019-20
(US$ in million)
21,534
1,276
1,092
FY 2018-19
(` in crore)
1,30,566
6,201
5.3%
5,546
4.2%
% change
Y-o-Y
24.8%
55.7%
49.0%
Reliance Retail achieved a turnover of
` 1,62,936 crore in FY 2019-20, registering
a growth of 24.8% y-o-y. EBITDA margin
improves to 6.6% vs 5.3% last year. The
business delivered an EBIT of ` 8,263
crore in FY 2019-20, registering a growth
of 49% y-o-y.
Reliance Retail operated 11,784 retail stores
in over 7,000 towns and cities covering an
area of 28.7 million sq. ft. as on 31st March
2020. Reliance Retail operated 519 petro
retail outlets as on 31st March 2020.
BUSINESS PERFORMANCE
Reliance Retail demonstrated yet another
year of highest ever revenue, EBITDA and
margin expansion despite challenging
market environment, slowing consumer
demand, and COVID-19 disruption towards
the end of the year. This robust business
performance is backed by consistent
strategy, sharp operational execution and a
customer centric approach.
REVENUE
Business performance has been broad
based with growth delivered across all
categories. The revenue growth continues
to be built around a balanced mix of healthy
like for like sales from existing stores,
bolstered by new customers acquired
from a rapid expansion of stores across
consumption baskets and geographies.
The gains of modern retail are being
brought to the real ‘Bharat’ as more than
2/3rd of stores are operated in Tier II, Tier III
and Tier IV towns.
Business model is witnessing the benefits
of operational efficiencies with margin
growth outpacing the exponential revenue
growth. The margins continue to improve
across all consumption baskets backed
by improving store productivity, favorable
product portfolio mix, sourcing benefits
and operational efficiencies. Further,
initiatives centered around process
improvements, use of technology and
training are helping optimise costs and
enhance store throughput resulting in
margin improvement.
REVENUE MIX
(` in crore)
Change y-o-y
9
10
27
FY 2019-20
`1,62,936
FY 2018-19
`1,30,566
34
9
33
21
18
30
9
Consumption Basket
Consumer Electronics
Fashion & Lifestyle
Grocery
Connectivity
Petro Retail
FY 2019-20
44,625
Change y-o-y
5,440
% Growth y-o-y
14%
13,552
34,601
55,943
14,215
2,624
11,187
12,207
912
24%
48%
28%
7%
Reliance Digital
41
BUSINESS PERFORMANCE: RetailReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh As the business is scaling up further,
benefits of operating leverage are providing
significant headroom for the business to
continue making requisite investments to
secure its future readiness, whilst delivering
profitable growth alongside. Expansion
of the business in Tier 3 / Tier 4 markets
and early break even witnessed in these
markets reflect this feat.
In Consumer Electronics, the business
continued to pursue physical store
expansion and opened 605 stores during
FY 2019-20. Reliance Digital continues
to march ahead of its competition and
crossed a milestone of 400 stores. Business
registered robust growth which was driven
by focused strategy, marketing campaigns,
superior customer experience, exclusive
product SKUs, partnerships with leading
financial institutions for consumer financing,
strong festive season footfalls and big
days performance.
Reliance Retail entered into a long-term
exclusive brand licensing arrangement
with Kelvinator and BPL. The arrangement
grants Reliance Retail an exclusive
manufacturing, marketing and distribution
right in India for a range of products
covering consumer electronics, durables
and accessories.
SMART Superstore
42
consistency in supplies. Reliance Retail
has also been a growth catalyst for many
regional brands in developing innovative
products, packaging designs and in
expanding their markets.
OUTLOOK
Reliance Retail is now embarking on a
journey to transform traditional retail
through its JioMart Digital Commerce
Platform. The roadmap to this journey
requires Reliance Retail to establish a
complex yet robust physical and digital
pan-India infrastructure and neatly weave
this network to a smooth, sound and
responsive operating system, which will
enable Reliance Retail to serve consumers
in partnership with traditional retailers.
Reliance Retail has commenced taking
strides towards this with the launch of
pilot phase of JioMart in select cities. It
provides omni-channel experience to
consumers who can place orders through
alternative ways including Whatsapp which
will be served by merchant partners. It is
aimed at changing the entire customer
journey in ways that even consumers who
are not comfortable with digital channels
become comfortable with JioMart. JioMart
acts as a centralised procurement and
delivery platform between manufacturers
and merchant partners. JioMart enables
digitisation of merchants through Jio PoS
at the backend and JioMart app at the
frontend. As for the pilot, Reliance Retail has
commenced onboarding merchant partners
in a limited geography.
Reliance Retail will continue to invest in
expanding the existing store network
and enhance core capabilities including
omni-channel solutions, innovative store
concepts, enhancing store environment for
providing immersive customer experience,
leveraging customer insights through use of
sophisticated technology and much more to
consolidate its market leadership across all
consumption baskets and store concepts.
In Fashion and Lifestyle, Trends continues
to carry out fastest store expansion among
fashion retailers in India and opened over
500 stores during FY 2019-20. Overall,
the Fashion & Lifestyle business crossed
2,000 store mark.
AJIO continues to witness superlative
growth across all operating parameters
viz. web visits, assortment listing, browsing
time, number orders, among others. The
business continues to strengthen its O2O
(offline-to-online) capabilities through
in-store couponing, endless aisle kiosks
across 841 Trends and extension stores,
direct deliveries from 350 Trends and 70
Trends Footwear stores.
Reliance Brands acquired the iconic British
Toy retailer Hamleys. With over 250 years’
history, Hamleys is oldest toy retailer in
the world, bringing smiles and laughter
to children all over the world. During the
year, Reliance Brands announced a JV with
Tiffany & Co, American luxury jeweller and
specialty retailer, JV with WOMO | Bullfrog,
the premium Italian men’s cosmetics brand
and exclusive partnerships with British
Footwear and Handbags brand Kurt Geiger.
The market for traditional jewellery
retailers faced headwinds during the year,
whereas customer centric modern trade
retailers witnessed growing demand.
Business believes this movement to
be a secular trend. To capitalise on this
market opportunity, Reliance Jewels
nearly doubled its reach from 143 stores
to 241 stores.
In Grocery, the business accelerated the
pace of expansion with 98 SMART stores
launches during the year, taking total
SMART store count to over 250 stores.
Almost half of the SMART stores are in
Tier II and smaller towns and have shown
equally robust customer traction and sales
throughput as the stores in metro cities.
A new store concept SMART Point was
executed in a record 45 days’ time from
concept ideation to launch. The business
continues to strengthen merchandising
capabilities through stronger ties with
vendor partners – exclusive product
launches, exclusive pack sizes and
People
Products*
Places
1,39,000+
employees
27 YEARS
average age
24%
Women employees
2,000+
Differently abled employees
48 YEARS
Leadership age
10%
Women leaders
2 CRORE
units of electronics
16 CRORE
garments
262 CRORE
units of grocery
65 CRORE
vehicles refueled
46
International partner brands
* Scale of Annual Sales
11,784
stores
7,000+
towns and cities presence
28.7 MILLION SQ. FT
of retail space
328
Warehouses and DCs
310 MILLION CU. FT
of warehousing space
171
resQ service centers
FUTURE READYING THE BUSINESS FOR A POST COVID-19 WORLD
Reliance Retail promptly addressed many
of the challenges posed by COVID-19
disruptions through numerous initiatives
and actions. It ensured security of its
employees through daily monitoring
of diagnostic symptoms, assistance
to employees in case of medical
emergencies, early disbursement of
salaries, protective gear for on-ground
staff, recognition of heroes for their
exceptional service through newsletters
and much more. Business ensured that
more than 98% of the grocery stores
were operational, sufficiently stocked
with essentials and re-aligned store
layouts for quick service. It increased
capacity for home delivery, enabled
“buy online pick up in store” to prevent
crowding at stores, introduced “combos”
to reduce shopping time and launched
bulk ordering for residential societies.
Business ensured supplies across the
entire ecosystem and delivered essentials
to various state governments, and NGOs
for welfare initiatives in partnership with
Reliance Foundation.
As much as COVID-19 was a disruption,
the business also viewed it as an
opportunity to strengthen its partnership
with kirana ecosystem. During the
lockdown JioMart provided uninterrupted
services to kiranas across Navi Mumbai,
Thane and Kalyan and witnessed order
flow increase of 4x times of pre-lockdown
period. JioMart also commenced
WhatsApp ordering for consumers
through its partnership with Facebook.
Reliance Retail is rewiring parts of its
business and future readying it for a
post COVID-19 world through various
measures. It is enhancing safety and
hygiene standards and workplace
practices for offices, stores and
operations. Business is re-imagining
the store in a post COVID-19 world and
reworking its interactions with customers
when they come back, how they come
back, their shopping journey, checkout
and so on. Taking a 3600 view of the
customers, business is strengthening
digital commerce and omni-channel
capabilities, bolstering its supply chain /
fulfillment capacity to handle 10x home
delivery. The lockdown has provided
valuable learnings for JioMart’s business
model and yielded encouraging progress.
This will enable accelerated roll-out of
JioMart Digital Commerce. Business
is further building a strong own brand
portfolio in apparel and grocery in
keeping with emerging consumer trends.
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BUSINESS PERFORMANCE: RetailReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh BUSINESS STEWARDSHIP
Reliance SMART Stores Partnership with local NGOs
Reliance SMART connects the customers
with the under-privileged by collecting
donations from customers and donating
the same to NGOs. The platform aids
busy customers who want to help the
under-privileged by connecting them
with the under-privileged.
These NGOs cater to senior citizens,
orphans, destitute and differently-abled.
The store staff have established cordial
relationship with these institutions by
visiting these NGOs on a monthly basis
to donate and also inviting them for
the store visits.
The Store Operations team identify and
connect with NGOs to carry out donation
activities in their premises.
A monthly budget has been set for each
SMART store to conduct the donation
activity for the NGOs.
A collection bin has been installed
in SMART stores in which customers
donate items and it also has a money
Donation box where customers can
voluntarily contribute Re.1 or more.
Stores also buy items from their
community budget and add to the
customers’ donations.
Stores then segregate and pack the
donation items before visiting the NGO.
Stores share donation details and
pictures of the activity during NGO visit
on monthly basis.
More than 100 NGOs have collaborated
with Reliance SMART Stores covering
all major cities of India. Every month
Reliance SMART touches lives of
over 1 lakh underprivileged people.
On an average, 15,000 kg. worth of
non-perishable food items, clothes,
personal and homecare items, sweets
and stationary items are donated
on monthly basis.
Serving and caring the society as
a responsible corporate citizen by
contributing to improve the living
conditions of the less fortunate.
Establishing Reliance Retail Stores
as community Stores, a focal
point, where people can feel their
connection with the underprivileged.
Spreading happiness and love
among orphans, differently abled
and senior citizens.
SOCIAL MOBILITY
Reliance Retail is home to almost
one lakh employees with diverse
socio-economic and educational
backgrounds. Reliance Retail
provides employment and
development opportunities to a wide
strata of population ranging from
unskilled workforce to people with
doctoral degrees.
Under the National Apprenticeship
Promotion Scheme (NAPS), unskilled
workforce work with Reliance Retail
as apprentices in a year-long program.
Another initiative named Source-Train-
Hire, is run in partnership with Reliance
Foundation, through which Reliance
Retail trains unemployed youth across
nation with the aim of imparting their
skills to help them move up the social
ladder through gainful employment.
Reliance Retail helps the employees
with financial assistance schemes for
higher education. Through the BBA in
Retail program, Reliance Retail helps
them become graduates. Reliance
Retail also provides the opportunity to
earn “Recognition of Prior Learning”
RPL Certificate under PMKVY scheme.
Under the “Step-Up” program,
store and warehouse people get an
opportunity to be trained and grow
towards more complex roles.
Reliance Retail also recognises that
there is a huge opportunity to provide
upwards social mobility to people
with disabilities who constitute 2.2%
of Indian population. Through the
efforts of making Reliance Retail
a great and welcoming place to
work for people with disabilities,
more than 2,000 PWDs are part of
Reliance Retail family.
PURPOSE, PASSION, PERSEVERANCE HAS LED RELIANCE RETAIL TO
BECOME FASTEST GROWING RETAILER IN THE WORLD
The seed of Reliance Retail was sown with a vision of building the most admired
& successful organised retail company in India that enhances the quality of life
of every Indian.
The journey that started 14 years ago has manifested into a remarkable and robust
business that we all are proud of.
Reliance Retail’s operating model is based on customer centricity, while leveraging
common centers of excellence in technology, business processes and supply chain.
In an endeavor to serve customers across geographies, segments and consumption
occasions, Reliance Retail has built and refined multiple store concepts with a focus to
serve diverse needs of its customers.
Reliance Retail has consistently endeavoured to provide best store experience,
unmatched value proposition and seamless anytime, anywhere shopping experience,
through omni-channel initiatives. This strategy has resulted in strong operating
performance, broad-based growth and leadership across consumption baskets.
Reliance Retail engages with its value chain partners and bring out disruptive gains for
all stakeholders.
In the grocery consumption basket, linkages with the farm have brought about
transformational changes in the quality of life of farmers, also enhancing the quality
of produce, reducing wastage by shortening the time to move fresh produce and
reducing intermediaries in the value chain, thereby benefiting all. Modern grocery
retail has evolved in India and so has the consumers. To remain relevant to weekly
and monthly shopping missions of a household, Reliance Retails grocery stores have
successfully maintained a fine balance of serving local tastes by offering small brands,
as well as national and international brands. Similar interventions in fashion & lifestyle
and consumer electronics consumption baskets have also brought about lasting gains
to all value chain partners and have benefited consumers.
With an undistracted focus and commitment to better the Indian retail landscape,
Reliance Retail has emerged as a leader in not only in Indian market context but also
global arena. Reliance Retail has featured amongst the fastest growing retailers in
the list of “Global Powers of Retailing” published by Deloitte for 3 consecutive years
based on FY2016-17, FY2017-18 and FY2018-19 financial numbers. Reliance Retail has
currently featured at #1 position amongst the fastest growing retailers in the world, a
feat that makes India proud.
EASE OF LIVING FOR
EVERY INDIAN
Carrying forward the vision of the
Chairman of creating an ease of living
for every Indian, Reliance Retail is
leaving no stone unturned. Reliance
Retail’s commitment to “bettering
the lives” has led to the initiative of
bringing millions of farmers, small
scale producers and merchants to the
forefront of the retail revolution by
partnering with them for growth.
Reliance Retail is committed to
creating one of the world’s most
people-friendly, performance-driven,
and process-efficient learning
organisation, where the best and the
brightest work together to create a
responsive, respectful and delightful
work environment. This has impacted
the lives of millions of people by
improving their living standards to
a great extent.
Unforeseen situations, language
barriers and disabilities would never
diminish the spark in the eyes of the
employees. They are committed to
exhibit the core values of Reliance
Retail at all times. Be it providing
exceptional shopping experience
or helping the needy and elderly,
Reliance Retail’s employees go an
extra mile to create an impact in our
customer’s buying decision to a great
extent. There have been bounteous
instances wherein the customers have
appreciated the quality of hard work
our employees have put in for the
following areas:
• Offering great customer service
• Going out of the way to help the
differently abled
• Voluntary efforts of help during
natural calamities
• Showcasing presence of mind by
helping customers in need
• Display of integrity and sincerity
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BUSINESS PERFORMANCE: RetailReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya JoshACTIONIMPACTOUTCOMEPURPOSEPASSION PERSEVERANCE Management Discussion and Analysis (contd)
BUSINESS PERFORMANCE
Digital Services
VISION
MISSION
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
• Connectivity for every Indian
• Superior customer experience
• Affordable data
• Best-in-class fixed-line
solutions platforms
Next-generation technology
company building a digital
society for India by bringing
together Jio’s leading digital
apps, digital ecosystems
and India’s #1 high speed
connectivity platform under
one umbrella
MyJio
Manage your Jio account
Jio Call
VoLTE and rich
communication on all phones
Jio Store
Install and manage your
apps on Jio devices
Jio Motive
Make your car Wi-Fi enabled,
check real-time location and
status, emergency contacts
JioTV
Live and catch-up
TV on the move
JioCinema
Entertainment at
your fingertips
JioSaavn
Music for you.
Anytime, Anywhere
JioGames
Bringing games to
everyone’s life
JioHealthHub
Your digital health vault
JioNews
Complete package for
digital news and magazines
JioTV+
Aggregating video
content across OTT apps
JioAds
Cross-device marketing
technology platform
JioCloud
Store and access your
files from anywhere
JioNet
Gateway to India’s
largest Wi-Fi network
JioBrowser
Fast, safe and
lightweight Indian browser
JioHome and
JioSmartLiving
To control IoT devices,
access media
content, customised
home automation
and surveillance
JioChat
Free chat, SMS, voice
and video calls
JioSecurity
Protect your phone,
secure your data
JioSmartSecurity
Security camera application
which lets you connect and
view multiple cameras
JioPOS Lite
Peer to peer mobile recharging
on a commission basis
Tesseract
Democratising mixed
reality
JioMoney and
Jio Payments Bank
Experience cash-free living
JioSwitch
Secure file
transfer and share
JioGST
GST service provider
JioMart
Online to Offline (O2O)
commerce platform
Embibe
Education platform
46
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Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh Sanjay
Mashruwala
Mathew
Oommen
Jyotindra
Thacker
V. Sridhar
Isha
Ambani
Pankaj
Pawar
Anish
Shah
Ashish
Lodha
Akash
Ambani
Kiran
Thomas
Anant
Ambani
Harish
Shah
Anshuman
Thakur
Rajneesh
Jain
Shyam
Mardikar
Dhruv Kumar
Tayal
Anuj
Jain
Prateek
Pashine
Aayush
Bhatnagar
Saurabh
Sancheti
R. Srinivasan
Sanjay
Jog
Rahul
Mukherjee
Jio continues to drive the digital revolution in India
with 387.5 million subscribers becoming a part of the
Jio ecosystem as of March 31, 2020. Jio was built on
the core thesis of the transformative power of data
with connectivity as an enabler. It has delivered the
fastest at scale connectivity user onboarding and is
now layering on a robust digital services ecosystem
of apps while leveraging its deep technology
capabilities.
As a first step towards creating the digital services
ecosystem in the country, Reliance Jio has been the
key catalyst in creating the broadband data market in
India. It is now the #1 ranked mobile telecom operator
in the country by both Adjusted Gross Revenue (AGR)
and subscribers.
Building on this success, Jio is rolling out its state-
of-the-art wireline services across homes and
enterprises. All this will help lay a strong foundation
for offering platform-based digital services.
To further facilitate this from the perspective of a
business organisation, Jio has consolidated all its
technology capabilities, investments and connectivity
businesses into a single-holding company called Jio
Platforms Limited.
Jio remains committed to creating the world’s
premier digital society in India. This will be built on
the transformative power of data, where connectivity
becomes the enabler for digital platforms, improving
lives of every citizen of the country.
PERFORMANCE
R Operating Revenue (` in crore) E EBIT (` in crore)
Jio Subscriber Base (In million)
160.1
186.6 215.3 252.3 280.1 306.7 331.3 355.2 370.0 387.5
R
STRATEGY
E
Jio remains committed to its vision of connecting everyone and everything, everywhere – always at the highest quality and the most
affordable price.
Data
Average per capita
data consumption on
Jio’s networks is
11+ GB per month
with potential upside
from new use cases
coming up every day.
Quality
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.
Affordability
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.
Agility
Jio’s adoption of an
agile model while
developing its systems
has supported its ability
to scale and adapt in an
orderly manner.
Coverage
Coverage refers to
anytime, anywhere mobile
broadband access. Jio’s
4G coverage at present is
greater than 2G coverage
in India with close to 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.
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BUSINESS PERFORMANCE: Digital ServicesReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh0020,00015,00010,0005,000DEC 2017MAR 2018JUN 2018SEP 2018SEP 2019DEC 2018DEC 2019MAR 2019MAR 2020JUN 20194,5003,0001,5006,0008,136 1,4402,042 2,362 2,665 3,080 3,322 3,857 4,104 11,416 12,893 14,328 15,741 1,715 10,023 1,495 8,421 16,534 17,555 18,632 TOTAL SOLUTIONS FOR
ECOSYSTEMS
Jio is creating a massive digital ecosystem
for a billion Indians with domain expertise
across business verticals in the platform
company. The platform company will not
just provide world-class fixed-mobile
converged connectivity, but also digital
solutions across business verticals and
the customer life cycle. Jio has taken the
ecosystem approach to bring together
its pan-India network and distribution
presence with deep technology expertise
to benefit consumers, merchants/Small and
Medium Businesses (SMBs) and enterprises.
Jio’s services span across connectivity and
cloud, media, digital commerce, financial
services, gaming, education, healthcare,
agriculture, Government to Citizen (G2C),
smart cities and manufacturing.
DIGITAL PLATFORMS
Jio has created strong internal
capabilities across the following key
digital technologies:
Infrastructure as a Service (IaaS), Platform
as a Service (PaaS), Big Data, Augmented
Reality/Virtual Reality (AR/VR), Internet
of Things (IoT), Blockchain, Artificial
Intelligence (AI), Machine Learning (ML),
edge computing, speech/natural language,
super computing, computer vision,
robotics and drones.
These capabilities will power the
creation of reimagined solutions for
various ecosystems.
MARKET ENVIRONMENT
AND OUTLOOK
ADOPTION OF DIGITAL SERVICES
India now has over 650 million mobile
broadband subscribers driven by
large-scale launch of 4G-LTE network
across the country by Jio and other
mobile operators. Deeper rollout of
4G-LTE networks has also led to a steady
increase in mobile internet penetration
across rural areas to 28%. India has seen
a meaningful transition from 2G/3G to 4G
and existing 350 million feature phone
users are expected to follow suit with
affordable smartphones and seamless
availability of mobile data networks over the
next few years.
EXPONENTIAL GROWTH IN
DATA USAGE
Increasing adoption of broadband services
has led to a 50% y-o-y growth in wireless
data usage across the country over
FY 2018-19. Increasing availability of
devices, improving network penetration,
higher affordability for data services
and emerging new use cases are likely
to sustain this exponential growth
in data demand.
Jio with affordable data plans has been
the primary driver of data boom in India
over the past three years. Prior to the
Media and
Entertainment
• JioTV
• JioTV+
• JioCinema
• JioSaavn
• JioNews
Commerce
Education
Healthcare
Agriculture
• Digitally enabled
education to overcome
infrastructural challenges
• JioMart
• Enable 20 million
small merchants
to compete with
organised retail
• Data analytics and AI
for consumer insights
• Overcome deficit of
physical infrastructure
• Tele-medicine,
tele-radiology,
e-diagnostics and
genomics
• Long gestation
opportunity
• Combine digital
tools with the
wisdom of farmers
• Technology for water
conservation, soil
management and
precision farming
BEST-IN-CLASS CONNECTIVITY
have left the network and Jio is now a net
receiver of IUC.
JIO’S OFF-NET VOICE
TRAFFIC MIX
(%)
Outgoing
Incoming
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 4.5 Exabytes per
month, with the industry data traffic of more
than 7.5 Exabytes per month (this was 6.9
Exabytes at the end of CY 2019).
As per data in the Ericsson Mobility Report
2019, mobile data in India is expected
to grow 3X during CY 2019-25E, with
mobile broadband subscriptions expected
to double during the same period. The
government’s endeavour to roll out next-
generation data network in the remotest
corner of the country for all citizens
would accelerate this transition towards a
digital society.
MONTHLY MOBILE
TRAFFIC — INDIA
(Exabytes)
WIRELESS
BROADBAND SUBSCRIBERS
(Million)
Broadband subscribers
Source: Ericsson Mobility Report
REGULATORY DEVELOPMENTS
Among the key regulatory developments
with respect to the digital services business,
was TRAI’s decision to push back the
transition to Bill and Keep (BAK) regime by
12 months. The Interconnect Usage Charge
(IUC) would now be reduced to zero with
effect from January 1, 2021. Accordingly, Jio
introduced a charge of 6 paise/minute on
all off-net outgoing voice minutes to pass
through the impact of change in regulatory
stance on IUC in October 2019. This has
led to a significant improvement in voice
traffic mix as misusers of free voice services
Source: TRAI
Jio continues to believe that transition to
the BAK regime will hasten the adoption
of more efficient technologies like VoLTE,
which has a negligible cost for carrying and
servicing essential voice services.
During the year, TRAI has also initiated
consultation process on feasibility of
establishing a floor price for mobility
services in the country. Market dynamics
have improved in the recent past, as
reflected by tariff hikes effective December,
2019 wherein all the operators revised
their tariff plans upwards by up to 40%.
As a responsible corporate citizen, Jio
would continue to actively engage with the
regulator and industry stakeholders to drive
growth for all.
In addition, the Honorable Supreme Court
of India had, in its verdict related to the
pending AGR matter, directed operators
to pay the outstanding dues before
January 24, 2020. In compliance with this
judgement, Jio had self-assessed AGR
related levy and deposited `195 crore
with the Department of Telecom within the
stipulated timeframe.
The government has also expressed its
intentions of conducting the next round of
spectrum auctions during the fiscal year
2020-21. Jio with its 5G-ready network and
extensive fiber assets, would play a key role
in the development of the 5G ecosystem in
India, based on market dynamics.
WIRELINE NETWORKS
With sub-optimal wireline infrastructure
and a meagre 7% penetration in terms
of households, India has for long, been
a laggard in fixed broadband services.
Fiber penetration in low single digits is
significantly lower than global benchmarks.
Jio is approaching Fiber to the Home
(FTTH) services as a huge greenfield
opportunity to potentially connect 50
million homes and 15 million enterprises
with high-speed fiber across 1,600 cities.
Jio’s extensive intracity fiber network,
last-mile execution, seamless customer
experience along with attractive bundling
of digital content and smart home IoT
solutions would be key differentiators.
Jio had connected approximately one
million homes with JioFiber services
until March 2020.
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BUSINESS PERFORMANCE: Digital ServicesReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh0105152025201820192025E6.922.04.6OCT 2019MAR 202040.8049.2050.9059.200175350525700DEC 2016DEC 2017DEC 2018JAN 2020345500654.3217 JioFiber OFFERING FOR CONNECTED HOMES
High-speed
Internet
Home
Networking
Free HD
Voice
Security and
Surveillance
TV Plus
Gaming
TV Video Calling
Music
Get access to content across
MOVIES + TV SHOWS +
VIDEO ON DEMAND
largest data lakes across corporates in India
would abide by the law in letter and spirit.
DIGITAL SERVICES FOR ALL
Government of India has undertaken the
project BharatNet which is the world’s
largest rural broadband project to provide
broadband connectivity to all 2,50,000
Gram Panchayats covering 6,25,000
villages. Jio has in its own way tried to
boost the ‘Digital India’ initiative by covering
99% of population with an all-IP 4G-LTE
network. Jio with the widest 4G coverage
is the only provider of mobile data services
to almost 250 million citizens of the
country would play a pivotal role in digital
inclusion in India.
DATA PROTECTION
Jio believes that customers are true owners
of their data and without their consent, no
data should be collected, processed or
used by any corporate entity. Also, Jio has
been an active supporter of local storage of
critical and sensitive customer data in the
interest of national security and protection
of customer privacy. Data localisation is also
expected to drive investment and create
employment in the country.
The regulatory framework through the
Personal Data Protection Bill, 2019 is
currently being finalised by the
Government of India to ensure adequate
measures are taken by corporates with
respect to data protection. Reliance with
more than 500 million customers across
consumer businesses and one of the
52
India is the second-largest smartphone
market in the world after China, with
approximately 450 million unique
smartphone users. Notwithstanding,
smartphone penetration has been low,
constrained by availability of good
quality affordable devices for the lowest
economic strata.
Over the past two years, JioPhone
(marketed by Reliance Retail) has
successfully transitioned over 100 million
erstwhile feature phone users to 4G
network. The 'JioPhone Diwali' offer
introduced in October 2019 has been very
successful in accelerating data adoption as
subscribers have seen enormous value in
the affordable bundle of device and digital
services. Despite this, rural India remains
an underpenetrated market and presents a
huge opportunity for digitisation, with rural
broadband penetration at 28%.
Jio believes that the availability of digital
services at affordable price points would
drive adoption of Internet-based services
by all and give the right tools in the hands
of young Indian entrepreneurs to drive
revolutionary growth.
SOCIETAL CONTRIBUTION IN THE
TIME OF COVID-19 CRISIS
In tandem with RIL’s response to its call-of-
duty to be at the service of the nation 24x7
in the collective fight against COVID-19, Jio
has remained committed to serve a billion
Indians, provide seamless connectivity in
this time of distress and help India fight
COVID-19 through the use of technology.
• Enabling work from home, learn from
home and health at home for Indians –
Jio's world-class broadband connectivity
solution (JioFiber, mobility and JioFi) has
been a key communication platform for
387.5 million subscribers. In addition,
Jio has also offered double data and
additional offnet minutes to all mobility
add-on pack users, double data for all
JioFiber subscribers and introduced
complimentary 10 Mbps JioFiber plan,
not yet launched for outside Reliance, as
it is under testing phase.
JioMeet – AN INTEGRATED CONNECTIVITY SOLUTION
VIRTUAL MEET FROM HOME
CONNECT WITH COLLEAGUES
For meetings, collaborative work and design sessions
USE JioMeet
App on any device or
Operating System
CONNECT
With family and friends
MULTIMEDIA
Collaboration
VIRTUAL LEARN FROM HOME
JioMeet
is an integrated component
within the Jio eEducation Platform
ASSIGN AND SUBMIT
Homework and assignments
STUDENTS AND TEACHERS
Attend virtual classroom
RECORDED
Class sessions and notes
VIRTUAL HEALTH FROM HOME
JioMeet
is an integrated component within
the Jio eHealth Platform
DIGITAL
Waiting rooms for
doctor productivity
CONSULT
Doctor virtually
ORDER
Medicines online
GET
Prescriptions online
ORDER
Lab tests online
• Enabling continuity of service for
JioPhone users – Amidst the nationwide
lockdown, to enable continuity of
services, Jio provided additional
100 voice minutes and 100 SMS to
JioPhone users who have not been able
to recharge. Jio users could receive
incoming calls even if the validity of their
existing packs have ended.
• Traffic surge handled with network
elasticity – Jio’s world-class
infrastructure (industry-leading capacity
and best-in-class technology) provided
seamless and uninterrupted services
despite the significant traffic surge
during the lockdown. Advantages of a
high degree of network automation also
came to the fore as physical movement
is restricted in majority areas.
•
• Government of India’s Corona Helpline
and Reliance Foundation, COVID India
Tool – Jio also extended its technology
expertise to the Government of India,
powering its official WhatsApp-based
helpdesk and providing a single channel
for all official queries/communication.
In addition, the Reliance Foundation
symptom checker tool allowed all Indians
to check symptoms from home and take
precautionary action.
Introducing innovative channels of
recharge – To enable subscribers
who do not recharge through digital
platforms, Jio facilitated recharges
through ATM machines, SMS/Call
and individual calling by geography
representatives for those who need
help in recharging. Jio also launched an
application, JioPOS Lite, to allow peer-
to-peer recharge on a commission basis.
53
BUSINESS PERFORMANCE: Digital ServicesReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh JioPOS Lite – INNOVATION TO EXTEND THE NETWORK OF JIO CHANNEL PARTNERS
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Made Easy
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process, get your Jio
partner ID created
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start earning
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numbers, start earning
commission
Dashboard
Profile Section
Faster and smoother
flow to transact with us
Transaction view made
clear and with easy
tap, you can set up and
change the M-pin
4G
42%
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42%
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JIO’S AGR MARKET SHARE
HAS GROWN STEADILY
JIO IS #1 IN 17 OUT OF 22 CIRCLES,
CLOSE SECOND IN 3 OTHERS
Jio AGR Market Share
JIO PLATFORMS LIMITED –
CREATION OF THE WORLD’S
BEST TECH ECOSYSTEM
Jio has made investments in excess of
US$50 billion since inception to create
the largest and most advanced digital
and connectivity ecosystem in India, with
a rich bouquet of successful apps and
platforms. New growth areas in Narrow-
Band (NB) IoT, IaaS/ PaaS, mixed reality,
gaming, education, healthcare, agriculture
and manufacturing have been identified.
This has created a portfolio of world-class,
legacy-free and future-proof digital assets.
As a part of restructuring of the digital
businesses that Jio undertook during the
year, a single platform company named
Jio Platforms Limited has been created.
This has been done to bring together
digital assets of Reliance spanning across
connectivity and technology investments
under a single wholly-owned subsidiary.
This has created not just an ability to
leverage the subscriber base to create the
world’s best and most relevant platforms,
but also create a debt-free and financially
strong holding company that could pursue
growth opportunities and be attractive for
strategic investments and partnerships.
Jio Platforms Limited
MyJio
JioTV
JioTV+
JioNews
JioCloud
Jio Call
JioChat JioSecurity
JioHealthHub
JioSwitch
JioBrowser
JioGames
JioAdvertising
JioPrime
Reliance Jio Infocomm Limited
Investments/Acquisitions
Wireless
Broadband
Home
Broadband
Enterprise
and SMB
Broadband
Netradyne
JioEstonia OU
Source: TRAI
54
Rank 1
Source: TRAI
Rank 2
PG 14
55
BUSINESS PERFORMANCE: Digital ServicesReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh05040302010SEP 17DEC 17MAR 18JUN 18SEP 18DEC 18MAR 19JUN 19SEP 19DEC 1934404043433038292014 PARTNERSHIPS WITH GLOBAL
TECHNOLOGY LEADERS
Jio’s success in building technology,
specifically for India and its ability to
proliferate across the country has attracted
global technology leaders – Facebook and
Microsoft—to forge partnerships with it.
Facebook – In April 2020, RIL, Jio Platforms
Limited and Facebook Inc. announced
the signing of binding agreements for an
investment of `43,574 crore by Facebook
into Jio Platforms. This investment by
Facebook valued Jio Platforms at
`4.6 lakh crore pre-money Enterprise Value.
Facebook’s investment translated into a
9.99% equity stake in Jio Platforms on a
fully diluted basis.
This partnership is aimed at accelerating
India’s all-round development, fulfilling the
needs of Indians and Indian economy. The
joint focus will be India’s 60 million micro,
small and medium businesses, 120 million
farmers, 30 million small merchants and
millions of SMEs in the informal sector, in
addition to empowering people seeking
various digital services.
Concurrent with the investment, Jio
Platforms, Reliance Retail Limited and
WhatsApp also entered into a commercial
partnership agreement to further accelerate
Reliance Retail’s Digital Commerce
business on the JioMart platform using
WhatsApp and to support small businesses
on WhatsApp. The companies will work
closely to ensure that consumers are able to
access the nearest kiranas who can provide
products and services to their homes
by transacting seamlessly with JioMart
using WhatsApp.
Microsoft – In August 2019, Jio and
Microsoft Corp. embarked on a unique,
comprehensive, long-term strategic
relationship aimed at accelerating the
digital transformation of the Indian economy
and society. This 10-year commitment
combines the world-class capabilities
of both companies to offer a detailed
set of solutions comprising connectivity,
computing, storage solutions, and other
technology services and applications
essential for Indian businesses. It will span
the broad Reliance Industries ecosystem
including its existing and new businesses.
The aim of the partnership is to enhance
the adoption of leading technologies such
as data analytics, AI, cognitive services,
Blockchain, IoT, and edge computing
among SMEs to make them ready to
compete and grow, while helping accelerate
technology-led GDP growth in India and
driving adoption of next-gen technology
solutions at scale.
Specifically, Jio’s connectivity infrastructure
will promote the adoption of the Microsoft
Azure cloud platform and technology stack
to its enterprise customers. In addition,
Jio will leverage the Microsoft Azure cloud
platform to develop innovative cloud
solutions focused on the needs of Indian
businesses. Jio will also set up data centres
in locations across India, consisting of
next-generation compute, storage and
networking capabilities, and Microsoft will
deploy its Azure platform in these data
centres to support Jio’s offerings. The
initial two data centres, which can house
IT equipment consuming up to 7.5 MW
of power, are being set up in the states
of Gujarat and Maharashtra. These are
targeted to be fully operational in CY 2020.
ENTERPRISE MARKET – JIO UNIQUELY POSITIONED TO CAPTURE THE EXPANDING INFORMATION AND
COMMUNICATION TECHNOLOGY (ICT) MARKET
Increase customer
revenues
by jointly exploring and enabling
additional sources of revenues,
attracting new customers
and increasing repeat sales
through digitisation
Transform experience of
end customers
work on avenues that transform
the experience of their customers
through digital technology
and thereby strengthen their
market position
Improve productivity/
reduce costs
by improving productivity of their
people and assets
BFSI
IT/Technology
Healthcare
Media
Smart City
Education
Call Centre
Hospitality
Retail
Manufacturing
56
NETWORK BUILT FOR A BILLION
INDIANS, WITH WORLD-CLASS
NETWORK ARCHITECTURE
Jio’s all-IP data network is built on the
4G-LTE technology. The network built as
a mobile video network carries more than
4 Exabytes of data monthly and is future
ready to transition to 5G and beyond.
Network capacity too is being augmented
by adding incremental sites, Wi-Fi access
points, small cells and expanding fiber
backhaul. To further improve the network
experience, advanced features such as
Software Defined Networking (SDN) and
Network Function Virtualisation (NFV) have
been incorporated, along with significant in-
house data centre capacity and investments
into Content Distribution Network (CDN).
Even with 387.5 million subscribers having
per capita voice usage of 771 minutes per
month and data usage of 11.3 GB per month,
data speed remains the highest while
network latency and call drop rates remain
the lowest among all networks across the
country. The entire scale-up of Jio has come
alongside sustained network performance
underlining its quality and capacity.
PROGRESS ON TOWER AND
FIBER INVIT
Jio’s passive infrastructure, which
includes 1,75,000 towers and 1.1 million
route kilometers for fiber in full scope,
has already been transferred through a
Scheme as of March 31, 2019, held through
two separate Infrastructure Investment
Trusts (InvIT). During the year, Reliance
has signed a binding agreement with
Brookfield Infrastructure Partners LP and
HIGH USER ENGAGEMENT
11.3 GB
Data/user/month
Combined for smartphone
and JioPhone users
~5 HOURS
Daily time spent/user
428 CR
GB/month data traffic
771 MINS
VoLTE voice
consumption/
user/month
>70%
Data traffic used
for video
its institutional partners for investment
in the units to be issued by the Tower
InvIT. Brookfield and affiliates will invest
`25,215 crore in Tower InvIT. Discussions
with potential investors for Fiber InvIT
are in progress.
FIXED MOBILE CONVERGENCE
In the next phase of the connectivity
rollout, Jio will offer state-of-the-art wireline
services across FTTH and Enterprises.
The core and aggregation layers of the
Jio network have been converged and
5G-ready from the time of inception. This
will allow Jio to offer services across the
fixed mobile connectivity layers, leading
to not just enhanced experience but also
efficient pricing.
LIBERALISED SPECTRUM ACROSS
THREE BANDS
The strength of Jio network is in the fact
that the entire 1,108 MHz of pan-India
spectrum holding across the three bands
(800 MHz, 1800 MHz and 2300 MHz) is
deployed towards 4G-LTE. Each of the sites
on the network radiates all three bands. The
average life of the spectrum is 13 years with
all spectrum liberalised, which can be used
to roll out any future technology.
PIONEERING VOICE
TECHNOLOGIES AT SCALE – FROM
VOLTE TO VOWI-FI
Jio is the first network globally to roll out
VoLTE at scale. In fact, Jio is the largest
VoLTE network carrying 9 billion minutes
per day. To further improve customer
experience, Jio also launched nationwide
voice and video over Wi-Fi services. With
this, customers can use any Wi-Fi network
for Jio Wi-Fi calling. The voice and video
calls seamlessly switch over between
VoLTE and Wi-Fi to provide an enhanced
voice/video-calling experience.
UNDERSEA CABLE FOR DIGITAL
CONNECTIVITY
Jio has been actively creating a multi terabit
capacity international fiber network. 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 km undersea cable
system providing direct connectivity
to South East Asia and Middle East,
57
BUSINESS PERFORMANCE: Digital ServicesReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh India has a rich and fast-growing ecosystem
of entrepreneurs who are using technology
to solve customer problems across the
strata of population. Reliance is playing an
important role in developing this ecosystem
through investments and collaboration.
Over the course of time, Reliance has
invested in companies such as Embibe
(AI-based education platform), Karexpert
(digital healthcare platform), Tesseract (AR/
VR capabilities), Reverie (AI for speech
and language recognition), SankhyaSutra
(computing, analytics and simulation tools),
Netradyne (AI-based fleet management),
Easygov (G2C solutions), Haptik (AI/ML for
speech and language recognition), Saavn
(online music platform), NewJ (content
curator), Radisys (digital initiative for
communications and networks) and Asteria
(drone technology).
These investments, along with Reliance’s in-
house developed technology capabilities,
will be a part of Jio Platforms Limited and
have been carefully selected to fit into the
Reliance digital ecosystem to enhance and
keep its offering across mobility, homes and
enterprises future ready.
FINANCIAL, OPERATING AND
CUSTOMER ENGAGEMENT
METRICS
Digital services reported another year
of strong revenue and EBITDA growth
driven by continued momentum in wireless
subscriber addition. Customer engagement
on Jio network also remained healthy
across data and voice services, with video
accounting for 70% of data usage. Net
subscriber addition of 81 million in
FY 2019-20 was well ahead of the industry
peers. Revenue of `68,462 crore for
FY 2019-20 on a year-ending subscriber
base of 387.5 million and EBIT margin of
21% underlines the best-in-class execution
capability of the digital services team.
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 km 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.
DISTRIBUTION ACROSS EVERY
NOOK AND CORNER OF THE
COUNTRY
Reliance Retail works as the Master
Distributor for Jio connectivity services
Jio has a pan-India distribution channel
with over 1 million retailers for customer
acquisition and selling recharges ensuring
every Indian home is within 20 kms of a
Jio Point. In addition to this, services are
also sold through the MyJio application,
the best-in-class full-service (prepaid and
post-paid payments, loyalty coupons,
troubleshooting, addition or deletion of
services) self-care application. MyJio’s
success is evident from a large portion
of smartphone and JioFiber customers
recharging and selecting their subscription
plans through the application.
INNOVATION ACROSS NETWORKS
AND PLATFORMS
Right since its inception, Jio has strived
to lead innovation in India across network
technology, platforms and consumer
services. Till date, Jio has filed 134
patents for the pioneering initiatives it
has undertaken, of which 29 have been
granted. In FY 2019-20 alone, Jio filed for 31
patents and was granted 10. These patents
span across devices, network, cloud, digital
media, branding and customer experience.
Jio’s patents cover areas of cutting-edge
technology, including IoT, 5G, video bots,
Blockchain, NFV and Evolved Multimedia
Broadcast Multicast Services (eMBMS).
SUITE OF DIGITAL APPS
Jio has taken a practical approach to
technology and a platform approach to
bring networks, technology, services and
experience under a single umbrella. This
58
has made the time to market for Jio’s
solutions the lowest across any technology
firms, allowing it to be nimbler and more
responsive to customer and market needs.
Across technologies and customer needs,
Jio endeavours to create scalable and
globally exportable platforms.
Jio network’s ability to seamlessly carry
multimedia content has allowed it to enrich
customer experience through a rich suite
of applications and tools that encompass
entertainment, news, information,
commerce and self-service. Jio’s rich suite
of digital applications have won multiple
accolades and continue to have the best-
in-class customer engagement metrics in
their respective categories. These include
JioTV (680+ channels of live and catch-up
TV, across 15 languages and 10 genres),
JioCinema (video on demand, 10,000+
movies, 1,20,000+ episodes, 60,000+
music videos), JioMoney, JioNews (190+ live
channels, 800+ magazines, 10+ languages,
JioSaavn (India #1 OTT music app with 55+
million tracks across 16 languages, unique
Artist Originals Programme), JioChat,
JioHealthHub, among others. MyJio
app with digital self-service and e-care
capability is a cornerstone of Jio’s
digital proposition for its customers.
Jio has done deep integration of
JioSaavn, JioCinema and
JioCloud, among others, into MyJio to
provide a single-window access to all
apps. Digital services to the customer
would expand from the current media and
entertainment to also include education,
commerce, healthcare, agriculture
and e-governance.
INVESTMENTS IN NEXT-
GENERATION TECHNOLOGY
CAPABILITIES
With technology capability in its core DNA,
Jio has invested in technologies ranging
across Big Data, Blockchain, Mixed Reality,
edge compute, IoT, computer vision, secure
identity, AI/ML, super compute, robotics
and IaaS/PaaS. Some of these are already
integrated and find use cases in the
existing offerings, while others would drive
launch of Jio’s next set of digital offerings
to the consumers.
FINANCIAL PERFORMANCE
Financial Parameter
FY 2019-20
FY 2018-19
Revenue
EBITDA
EBIT
EBIT (%)
₹ in crore US$ in million
₹ in crore
68,462
22,517
14,363
21.0
9,048
2,976
1,898
48,660
15,341
8,784
18.1
Y-o-Y
(%)
40.7
46.8
63.5
Jio continues to transform the Indian
telecom industry with key performance
indicators as follows:
• ARPU of `130.6 per month during the
quarter ended March 2020
• Average data consumption of 11.3 GB
per user per month during the quarter
ended March 2020
• Average voice consumption at 771 VoLTE
minutes per user per month during the
quarter ended March 2020
• Total wireless data consumption of 1,284
crore GBs (12.8 Exabytes) during the
quarter ended March 2020 (one of the
world’s largest mobile data networks)
• High user engagement with ~5 hours
spent by each subscriber per day on
the Jio ecosystem
OUTLOOK
Jio envisages a significant opportunity in
building a digital society for the citizens of
the country, which besides catalysing the
productivity and overall economic growth
would also generate adequate shareholder
returns over the next several decades.
Key pillars of building this digital society
would be; i) best-in-class wireless and
wireline data network for all at the most
affordable prices, ii) digital platforms for
Media & Entertainment (M&E), commerce,
education, financial services, health,
government services, agriculture and more,
iii) next-generation technologies such as
Blockchain, AI, IoT and Mixed Reality.
Over the next few years, Jio would focus
on creating a robust wireline network
across the country, offering high-speed
connectivity and a bouquet of digital
services to every home and enterprise.
Jio is geared up to touch the lives of over a
billion Indians through its wireless as well as
wireline offerings.
Endless possibilities with JioFiber connectivity
59
BUSINESS PERFORMANCE: Digital ServicesReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh JIO — BRIDGING THE PHYSICAL-DIGITAL DIVIDE
PAN INDIA DIGITAL
NETWORK
4G LTE
Wi-Fi
FTTx
5G
DEEP GEOGRAPHICAL
PRESENCE
Jio Centres, Jio Points
FSAs, Own stores
Channel partners
Direct to doers
Customers
Consumers
Merchants/SMBs
Enterprises
Digital Commerce
Manufacturing
Smart Cities
Payment and Finance
Entertainment
Education
Agriculture
Healthcare
Compute
Cloud
Edge
Super compute
Tech Platforms
IoT
Blockchain
Big Data, AI/ML
AR/VR
Robotics/Drones
Connected Device
Hardware
Operating system
Developer
Ecosystem
Apps and Content
Mobile apps
PC/STB/VR apps
Curated content
User generated
60
JioPhone
JioPhone is one of a kind product that
combines the affordability and ease
of use of a feature phone with the
functionalities of a smartphone for
first-time mobile Internet users.
Over 100 million Internet-deprived
feature phone users are brought onto
the mobile broadband platform.
An affordable 4G-enabled handset
for the large feature phone
user base in India, to make the
transition towards using Internet
and digital media over mobility
network. Critical in bridging the
digital divide in the country.
Supporting India digitally during difficult times
Reliance Jio has been at the forefront in supporting its users during the
COVID-19 pandemic.
a) Additional calling and
b) Digital recharge awareness campaign/
data benefits
recharge partner initiative
Jio offered double data benefits
across its data voucher recharges,
bundled voice minutes in the data
vouchers, additional 100 voice minutes
and 100 SMS to JioPhone users,
access to incoming services despite
expiry of validity of existing packs.
Jio educated users on benefits and ease
of doing digital recharge. It was among the
first telecom operators to introduce ATM
recharge facility across all leading banks’
ATMs. Jio launched the app, JioPOS Lite, a
virtual recharge store that allows peer-to-
peer recharges on a commission basis.
Assured connectivity in times of a
national crisis.
Promotion of digital recharges through
multiple channels.
Enabling continuity of services for
every Jio subscriber.
Introducing innovative methods of
recharge to substitute traditional
physical channels.
Jio’s #CORONAHAAREGAINDIAJEETEGA initiative
a) Healthcare at home
b) Work from home and learn from home
1) Symptom checker for COVID-19 on digital devices.
2) Jio Haptik Technologies has powered the
Government of India’s new WhatsApp chatbot called ‘MyGov
Corona Helpdesk’ to help address queries around the
Coronavirus outbreak and disseminate verified information.
3) Medical consultation through JioHealthHub.
Real-time medical consultation, and communication of patient
updates in real-time through connections to electronic health
records, business and office apps.
Enabling Indian citizens to stay safe, allowing for remote
care and prevention of unnecessary pressure on the
medical system.
Combining digital capabilities with Microsoft Teams, the
unified communication and collaboration hub for teamwork,
providing a communications hub for all lessons in a school
year, with free storage available for individuals and teams,
and launch of Jio’s own platform, JioMeet.
Remote audio and video meetings, meeting recording,
collaborative conversations, screen sharing and file sharing,
unlimited messaging, scheduling, chat and search app
capabilities; enabling students and teachers to go beyond
video calling to scheduling classroom sessions, document
and screen sharing and informal chat channels for real-time
doubt clarification.
Ensured a one-stop solution for all communication
needs and enabled remote working, remote learning
and remote engagement.
61
BUSINESS PERFORMANCE: Digital ServicesReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya JoshOUTCOMEIMPACTACTIONOUTCOMEOUTCOMEOUTCOMEOUTCOMEIMPACTIMPACTIMPACTIMPACTACTIONACTIONACTIONACTION Management Discussion and Analysis (contd)
BUSINESS PERFORMANCE
Media and Entertainment
800+ MILLION
reached through television channels
MISSION AND VISION
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.
`617 CRORE
EBITDA for FY 2019-20
TV CHANNELS
Diverse content, impactful brands
Network18 boasts of 56 channels in India spanning news and entertainment and an additional 16 international channels
DIGITAL ENTERTAINMENT
Touching hearts everywhere,
everytime, across devices
PUBLISHING BUSINESS
Class-leading specialised
print magazines
FILMED ENTERTAINMENT
Fresh subjects and an
enviable success rate
DIGITAL NEWS
Marquee properties that enlighten millions
DIGITAL COMMERCE
Pioneering, ubiquitous platform
CONTENT ASSET MONETISATION
62
63
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh Sanjay
Rahul
Joshi
Mashruwala
Jyoti
Deshpande
Ramesh
Damani
Network18 Media and Investments is one of
India’s most diversified Media & Entertainment
conglomerates. Its uniqueness lies in the
cross-section of its media properties and an
innate ability to create and nurture brands that
resonate with viewers across geographies and
demographics. As it grows in size, stature and
significance, its news and entertainment arms
are constantly at the cutting edge of innovation.
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.
Network18 commissioned India’s largest integrated digital newsroom at Mumbai
64
STRATEGIC ADVANTAGES AND COMPETITVE STRENGTHS
Reach
• 1 in every 2 Indians a consumer of our
broadcast content - TV channels reach
out to 800+ million people in India
annually, representing 95%+ of the TV
viewing universe.
• One in every four internet users in India is
on Network18 websites or apps - Digital
properties are now used by over 190
million people every month
OPERATING PILLARS
Viewership
• Subsidiary TV18 maintains its leadership
even versus to legacy brands and free-to-
air networks, with a 10.5% share of news
viewership in FY20.
• Subsidiary Viacom18 (a JV with Viacom
Inc) is the #3 pan-India entertainment
broadcaster, with a 9.5% entertainment
viewership share in FY20.
Diversity
• 20 domestic TV News channels span 15
languages, and Digital News from the
stable is available in 13 languages.
• Full-portfolio entertainment offering
includes 9 regional language TV
channels, a film studio renowned
for clutter-breaking cinema, and a
leading OTT platform.
PERFORMANCE
N No. of domestic channels (%)
V Viewership Share of Overall TV (%)
Channel-agnostic approach
Network18 strives to be channel-agnostic
to ensure its content reaches seamlessly to
consumers through their platform of choice.
Reach for impact
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.
Thought leadership
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.
Network synergy
Network18’s spread of properties facilitates
cross-promotion and cross-pollination of
content and expertise across its network,
enabling enhanced advertising and subscription
revenue generation.
Strategic collaborations
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.
Brand excellence
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.
N
V
65
BUSINESS PERFORMANCE: Media and EntertainmentReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh2015-162016-172017-182019-202018-194111.913.4555611.913.45212.9500255075051015 VALUE CHAIN
Network18 is spread 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. Network18 and its affiliates across the media, telecom and cable/
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.
Producer
Content Creation and Curation
(IP ownership with broadcaster)
Digital – Own Platform (B2C)
e
c
n
e
d
u
A
i
Subscription
Income
TV – Cable/DTH/FTTx (B2B2C)
Advertising
Revenue
A
d
v
e
r
t
i
s
e
r
Digital – Telco Platform (B2B)
Content Syndication
(Inbound and Outbound)
Partner
MARKET ENVIRONMENT
SUMMARY
The Indian media and entertainment sector
grew at a modest 9% in CY 2019, compared
to the normal double-digit growth
witnessed in the recent past as per
EY-FICCI media & entertainment
2020 report. This was led by a weaker
macroeconomic scenario (CY 2019 GDP
growth decelerated to 5.8%) dragging
advertising revenue, even as a pivot
towards B2C/B2B2C models of outreach
and monetisation boosted subscription
revenue, offering some respite. The industry
has scaled up to `1.82 trillion, with TV being
the largest contributor (43.2%) followed
by Print. TV grew just 6% led by the TRAI
New Tariff Order (NTO) impact, and Print
continues to see a slow but largely secular
decline, while Digital (+31% y-o-y growth)
has driven growth for the overall sector.
Digital has rapidly gained scale (>12% of
the media and entertainment pie in CY
2019, slated to outpace Print by CY 2022);
and remained resilient led by the promise
of targeted advertising and exponential
subscription growth.
Growth projections for the sector are at
risk considering the impact of COVID-19
pandemic on the macro-environment, which
directly and indirectly affects advertising.
With economic activity faltering amidst a
country-wide lockdown, advertising may
remain suppressed for much of H1
FY 2020-21. Policy interventions for
protecting the affected, fiscal stimulus
for kick-starting economic activity and
monetary easing to infuse liquidity are
expected to drive H2 towards normalcy.
However, the severity of the pandemic
and pace of its containment remain a key
monitorable. Nevertheless, with robust
media consumption underpinned by
demographic trends and improving content
availability as well as access-economics,
this key sector of the Indian economy is
expected to bounce back along with the
macro-environment in due course.
66
INDIA MEDIA AND
ENTERTAINMENT SECTOR
REVENUE
TV
Films
Digital
Total
Print
Other
Source: EY-FICCI estimates
KEY DRIVERS
IMPLEMENTATION OF NEW
TARIFF ORDER IMPACTED
CHANNEL REACH, BUT BOOSTED
SUBSCRIPTION REVENUE
The unbundling of existing bouquets
resulted in creation of customised language
bouquets as well as segmentation of the
market by price. The order enabled choice
for the consumer, which resulted in an
obvious drop in reach of certain channels
versus the previous regime. Channels
that were not opted for by consumers
faced erosion in not just subscription but
also ad-revenue. A B2C regime resulted
in a reset in pricing, and strong channel
bouquets gained as a result. The EY FICCI
report estimates that end-customer prices
grew by over 25% on average to cross
`225 net of taxes. Broadcaster yields, (i.e
share of consumer spend that flows to the
broadcaster) improved in general, led by
non-discriminatory pricing and a clampdown
on carriage fees.
SHIFT OF FREE-TO-AIR (FTA)
HINDI GENERAL ENTERTAINMENT
CHANNELS OUT OF THE DD
FREEDISH PLATFORM
All the major broadcasters shifted their
FTA channels out of DD Freedish post the
implementation of NTO to avoid concerns
around arbitrage of value, and converted
them to Pay. This has impacted viewership
(and consequently ad-monetisation)
for those channels very sharply, as DD
Freedish used to contribute 60-90%
viewership. All top 4 broadcasters have
faced a drop of 2-5% viewership share and
consequent revenues, while the smaller
broadcasters that have purely FTA channels
gained as a result.
CONCENTRATION OF SPENDS
AROUND MAJOR EVENTS AMIDST
A WEAK AD ENVIRONMENT
The first half of the fiscal had multiple major
sporting events (IPL, Cricket and Football
World Cups), which saw viewership and
ad-spends gravitating towards the highly
concentrated sports genre, and away from
the broad-based general entertainment
genre. The national elections in May 2019
also boosted ad-spends on news channels
during that period, and government/
political ad-spends contracted sharply
post the same. A relatively benign festive
season was the result of absence of some
major advertisers in sectors such as Auto,
Handsets, Telcos, among others from the
roster. As economic activity further slowed
towards the second half and the COVID-19
pandemic surfaced in Q4, a consequent
sharp fall in advertising continued to impact
broadcasters’ ad-revenues.
AD-REVENUES FLOWED TO
TARGETED MEDIUMS WITH
UNDERLYING CONSUMPTION
TAILWINDS
Weak macro-economic trends dragged
down consumer spends and depressed
broader corporate appetite for above-the-
line marketing activity (TV ad volumes
fell 4% y-o-y in 2019, and a number of
advertisers fell similarly). In a tepid ad-
environment, advertisers pivoted spends
towards targeted genres and platforms
to improve Return on Investment (ROI).
Further, a rapid growth in sports, vernacular
and digital content consumption and
measurement drove up their shares in the
consumption pie. As a result, while national
GEC ad - revenue faced headwinds, sports
channels, regional TV channels and Digital
gained handsomely.
DIGITAL PLATFORMS CONTINUED
TO GAIN TRACTION; THOUGH
CORD-CUTTING MAY NOT BE AN
IMMEDIATE CONCERN
Overall viewership on TV remained stable
in 2019, indicating that TV still has a long
road ahead of itself in the country. Though
H2-2019 witnessed a 5% drop, Indians still
spend 3 hrs 42 mins watching TV everyday
on an average. However, Digital is growing
at a fast clip alongside, with different
consumer cohorts emerging based on
price-point as well as use-case. Time spent
on entertainment apps increased 58% in
2019 and sessions on entertainment apps
increased 10%, as per App Annie data.
DIGITAL ADVERTISING BECAME
MAINSTREAM IN INDIA
Advertisers have gained comfort with
the Digital medium and raised their share
of spends on Digital across the board.
Share of non-English language content
consumption has risen to 93% (37% in
non-Hindi), which has resulted in 65%+
ads being in regional languages. Share
of programmatic advertising and native
advertising continues to jump.
PERCENTAGE SPENDS ON
DIGITAL BY SECTOR
2019
Source: Dentsu Digital Advertising in
India report 2019
67
BUSINESS PERFORMANCE: Media and EntertainmentReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh28532838856717519120724416922127941430529630130974078779088205001,0001,5002,0002,500201820192020E2022E1,6741,8221,9652,41618.5FMCGE-COMMERCECONSUMERDURABLESBFSITELECOMAUTORETAILOTHERS051015203035254045MEDIA & ENTERTAINMENT37.337.941.834.715.922.920.44.4 D2C SUBSCRIPTIONS RISING FAST
D2C Subscription models proliferated
through sachet pricing, though
monetisation was still small.
By comparison, 260 million consumers
accessed video content through Telco
bundles, EY-FICCI estimates.
PAID DIGITAL SUBSCRIBERS AND
SUBSCRIPTIONS
(million)
Subscribers
Subscriptions
Source: EY-FICCI estimates
OTTS STEPPED-UP
PARTNERSHIPS; SOME EXITED:
Amidst rising competition from local as
well as global players, some platforms
(Viu, Hooq) made an exit. Others
began partnering and integration with
peer platforms, syndicating content
to other digital players, and deep
integration with Telcos.
News18 Gujarati - Corona update
68
FINANCIAL AND OPERATIONAL
PERFORMANCE
FINANCIAL OVERVIEW
Network18 improved its financial
performance even amidst substantial
weakness in the advertising environment,
as business mix pivoted towards
subscription and syndication. Broad-based
cost controls across verticals further helped
improve the business profitability, amidst an
uncertain macro-environment.
Advertising remained under pressure
during the fiscal, led by weakening
economic growth, NTO related flux
in Q1 and COVID-19 pandemic during
late - Q4. Revival in rankings of flagship
entertainment channel, national elections
and continued growth in digital platforms
were offsetting factors.
Linear TV subscription revenue benefitted
from NTO implementation, growing 43%
in FY 2019-20. Distribution improvements
through tie-ups with cable and telecom
platforms have boosted the reach and
enlarged the value-proposition of our
channel brands. The contribution of
subscription in revenue mix has increased
to 35% in FY 2019-20, from 26% in
FY 2018-19. Digital partnerships (B2B)
are a new revenue stream which has
boosted profitability, as the strategy of
being platform-agnostic is playing out
across broadcasting as well as web-
series production.
While ad-revenues for all media have been
impacted by the COVID-19 pandemic, News
has been impacted to a lesser degree,
as its share in TV viewership has jumped
from 7% to > 15%.
Reported financials
Digital properties continue to benefit from
consumption tailwinds that have been
further boosted during the lockdown.
Entertainment has been impacted
the maximum as broadcasters have
replaced original programming with
re-runs due to the shuttering of content
production at present.
CORPORATE RESTRUCTURING
Consolidation to catapult Network18
to India’s largest listed media and
distribution company with revenue
of > `8,000 crore: On February 17,
2020, the boards of Network18, subsidiary
TV18 and cable companies Hathway
and Den Networks approved a Scheme
of Arrangement for consolidation into
Network18. This merger is subject
to all necessary approvals and the
appointed date for the merger shall
be February 1, 2020. Aggregation of a
content powerhouse across news and
entertainment (both linear and digital) and
the country’s largest cable distribution
network under the same umbrella shall
boost efficiency and exploit synergies,
creating value for all stakeholders. The
merged Network18 will be net-debt free
and enjoy a ~50% share of subscription in
revenue mix, making it much more resilient.
For more details, see the press release
https://www.bseindia.com/xml-data/
corpfiling/AttachHis/73fb4bef-1876-42bf-
8e78-635ac63ecc5d.pdf and info pack
https://www.bseindia.com/xml-data/
corpfiling/AttachHis/35e1aae9-2cfb-4d4f-
8e8d-6964f480ecae.pdf
Revenue
EBITDA
EBIT
EBIT Margin (%)
FY 2019-20
FY 2018-19 % Change y-o-y
₹ in crore US$ in million
₹ in crore
5,357
617
351
6.6%
708
81.5
46.4
5,116
212
(52)
(1.0%)
4.7%
191%
775%
OPERATIONAL OVERVIEW
TELEVISION BUSINESS
NEWS
ENTERTAINMENT
Business News constitutes CNBC TV18
and CNBC Awaaz, No. 1 in English and Hindi
business news genres, 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 was the
#2 Hindi News channel in the pay category.
News18 Network led by CNN News18 and
News18 India provided stellar coverage of the
national elections as well as the COVID-19
pandemic amidst challenging circumstances.
Regional News includes 13 News18 channels
(including the erstwhile ETV channels) and
News18 Lokmat.
Highlights of the year: The cluster has
the highest reach (452 million viewers) and
viewership in the country (6.1% share of all News
viewership) amongst regional news peers.
FILM BUSINESS
Hindi General Entertainment includes flagship general entertainment channel (GEC) Colors, re-run
GEC Colors Rishtey, and Hindi movie channel Colors Cineplex.
Highlights of the year: Flagship GEC Colors resurrected its ranking to #2 in Q4, with a 19.6% share
amongst pay - GECs; driving revenue growth amidst a tepid ad-environment. Colors Rishtey has climbed to
#2 amongst repeat-programming pay - GECs. Colors Cineplex is under ramp-up and viewership share has
risen to 5.2% within a year of re-launch as a pay channel.
Youth and Music includes MTV India, the No. 1 youth brand, and 24x7 Bollywood music channel MTV
Beats.
Highlights of the year: MTV Beats has raised its viewership share to 13.5% in a crowded category.
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 Comedy Central, Colors Infinity and VH1 controls nearly 67% 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 Kids category since August 2014
and continues to lead the segment.
Regional Entertainment The regional entertainment bouquet comprises Colors Kannada and Colors
Super (Kannada), Colors Bangla, Colors Oriya, Colors Gujarati, Colors Tamil and recently launched movie
channels Colors Kannada Cinema and Gujarati Cinema.
Highlights of the year: Colors Marathi maintained its strong #2 rank in the genre, with viewership share
rising to 25.4%.
Infotainment has factual entertainment channel History TV18 and lifestyle channel FYI TV18.
Film business includes Viacom18 Studios and Jio Studios.
Highlights of the year: Andhadhun broke ground in an untapped market like China, and went on to become the third highest grossing Indian film ever.
Web - content production unit Tipping Point delivered three major web - series — Jamtara, Taj Mahal – 1989 and She for Netflix.
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 opinion - portal and digital content studio FIrstPost.
Highlights of the year: Content of OTT video-on-demand platform VOOT is now consumed by 100 million MAUs (Monthly Active Users). Original series ‘Asur’
on VOOT Select was rated 8.5 on IMDB.
Digital Commerce includes Bookmyshow
Highlights of the year: BookMyShow scaled up its live entertainment business, managing and executing the iconic Sunburn Live music festivals, world-
famous Irish rock - band U2’s first tour of India, and international touring exhibition titled “Avengers S.T.A.T.I.O.N.” in association and under license with Marvel
Entertainment.
PRINT/PUBLICATION BUSINESS
Publication business has a portfolio of highly reputed magazines comprising Forbes India, Overdrive, Better Photography and Better Interiors.
69
BUSINESS PERFORMANCE: Media and EntertainmentReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh010203040201820192020E3216211174
GROWTH AND INNOVATION
Network18 has been striving to improve
its portfolio as well as enhance its
outreach to segment the market and
fill critical whitespaces. Substantial
investments continue to be made to create
a compelling proposition for viewers.
In a tepid ad-environment, the group
pushed forth in improving its annuity-style
income from subscription revenue and
syndication of content.
BROADCASTING
•
Improved distribution tie-ups across
cable and telcos have brought the
consumer closer to our class-leading
content bouquet at an affordable
optimum price. The implementation
of NTO provided a reset to pricing
(shifted from B2B to B2C), boosting
our linear TV subscription income
substantially by 40%+ y-o-y.
• Monetisation of content through digital
partnerships (B2B) drove step-up in
profitability. In line with our strategy
of being platform-agnostic, the group
stitched multiple partnerships with notable
digital platforms for serving their users a
discerning selection of our content.
DIGITAL
Pay - propositions were created in flagship
properties in News and Entertainment to
allow premium customers to benefit from
high-end content on an ad-free basis.
• MoneyControl (MC) Pro: MC Pro, the
behind-paywall offering from the leading
finance portal in the country, received a
great response from consumers. By the
end of the fiscal, it had scaled up to 1.5
lakh paying customers, which signals
both a strong demand for premium
financial news and tools, and an
increasing willingness to pay.
• VOOT Select: Voot Select, the freemium
entertainment offering, was launched
in March 2020 with live channels,
digital-first broadcast content and a
discerning library of original content that
has received audience acclaim. It aims
to build upon the strength of the brand
and the engagement levels the existing
ad-driven model has enjoyed.
70
• Voot Kids: This Kids edutainment
product was also launched during
the year. It is a niche, differentiated
product with Watch-Play-Learn-
Listen capabilities.
witnessed augurs well for the future, as some
of the increased engagement will stay - on
even when the pandemic tapers off. We have
stayed the course on our digital impetus and
sharp focus on profitability.
RISKS
TRAI’s new tariff order modification (NTO
2.0) aims to reduce the pricing disparity of
channels within a bouquet, which in effect
shall reduce either channels within the
bouquet or the price of the bouquet.
This has the potential to impact bouquet
reach and channel subscription revenue.
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. These higher churn rates
and lower stickiness provide 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.
OUTLOOK
The COVID-19 pandemic is a major black -
swan event, which has dragged the economy
and the advertising environment as a
result. The immediate impact on ad-driven
media industry will be significant; however,
an increasing proportion of subscription
revenues will help. With economic activity
faltering amidst a country-wide lockdown,
advertising may remain suppressed for much
of H1 FY 2020-21. The cost-optimisation
exercise undertaken across verticals during
FY 2019-20 will help us in these tough
times, and will be furthered aggressively
as our preparedness for the uncertain
economic scenario. We remain confident
that our portfolio of genre-defining brands
shall weather this storm and emerge even
stronger. The growth in media consumption
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.
The Company undertook some socially
relevant programmes during the year:
• Network18 launched Mission Paani in
2019 - to change attitudes and behaviour
to improve water use efficiency.
• Network18 and Serum Institute of
India (SII) have come together to
launch a nation-wide vaccination and
immunisation campaign — Swasth
Immunised India. It aims to build a robust
campaign aimed at spreading awareness
on the importance and benefits of
immunisation among the masses.
• The MTV Staying Alive Foundation,
partnering with Viacom18, brings a new
campaign to India in January 2020.
“MTV Nishedh”, will focus on
fostering healthier attitudes and
behaviours and removing the stigma
surrounding several health-related
issues, including sexual reproductive
health and well-being, contraceptive
care, tuberculosis (TB) and nutrition.
• Network18 launched #IndiaGives, a
campaign meant to provide support to
the daily wage earners who have been
hit the hardest by the COVID-19 crisis
in the country.
Reliance Foundation acts as the funnel
through which the Network18 Group
reaches out to empower people and
deepen its social engagements.
Network18 is creating awareness and mobilising donors to raise money for the poor affected by COVID-19
JIO STUDIOS
Jio Studios was set up in 2018 to
complete Jio’s triple-play offering, which
includes mobility solutions for voice and
data, high-speed home Internet and
fixed-line connectivity through fiber-to-
the-home (FTTH), and a whole host of
digital services and content. Jio Studios
invests actively to produce and acquire
original content, including films and web
series across languages, forge long-term
content alliances and aggregate content
to power Jio’s distribution platform and
expand its reach.
The already profitable film studio business
has tasted early success through box office
hits such as Stree, Luka Chuppi, Bala and
has an interesting slate of films across
budgets, languages and formats as well as
compelling original web content, all with the
promise of “great storytelling” at its heart.
RIL has already created a large portfolio
of media and digital properties, integrated
closely with new-age technology. Jio
Studios is responsible for building and
exploring synergies between these
businesses and aligning them with Jio’s
digital distribution ecosystem with a view to
ultimately make Jio’s ‘mobility’ and ‘home’
products and services more attractive to
the end consumer.
Jio Studios will now look to leverage the
newly announced Facebook partnership to
drive synergies using chat and social media
to maximise discovery, engagement and
commerce of its content apps and drive
further growth in consumption. Developing
content using Augmented Reality (AR) and
mixed reality technology is next on cards. In
a post COVID world, Jio Studios will explore
disruptive new business models to offer
latest content directly to consumers.
Jio Studios will continue to be the
catalyst that offers consumer salience
and differentiation by complementing
the Group’s technological and
distribution prowess.
A glimpse into select Jio Studios’ released films
71
BUSINESS PERFORMANCE: Media and EntertainmentReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh Jamnagar site is the largest
single site refinery with
complexity index of
21.1
Management Discussion and Analysis (contd)
BUSINESS PERFORMANCE
Refining and Marketing
VISION
Jamnagar Refinery 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
1.24 MBPD
crude processing
capacity
Refining
Petroleum
Retail
Propylene
Feedstock for polypropylene
LPG
Domestic, commercial and
industrial fuel
High Speed Diesel/ Gasoline
Transport fuel
Naphtha
Feedstock for petrochemicals
such as ethylene, propylene
and fertilisers and as fuel
in power plants
Sulphur
Feedstock for fertilisers and
pharmaceuticals
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
Reliance Aviation
Jet/Aviation Turbine Fuel
Aviation fuel
Relstar
Lubricants
Engine oil and lubricants
72
73
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh Hital R.
Meswani
P.M. S.
Prasad
Anant
Ambani
Srinivas
Tuttagunta
C. Borar
J. Rajaraman
P. K.
Kapil
Harish
Mehta
Surinder
Sani
Piyush
Bhatt
Ashwani
Prashara
We are witnessing a black swan event. The year
was characterised by soft regional refining margins
and significant price volatility amidst looming trade
wars and tightening oil sanctions on a few crude oil
producers. The much-awaited rally in refining margins
due to the change to bunker fuel specifications
from 1st Jan 2020 did not materialise due to lower
than expected boost from marine gasoil demand
as Very Low Sulphur Fuel Oil (VLSFO) remained
the bunker fuel of choice in the new International
Maritime Organisation (IMO) low sulphur regime. The
weakness has been accentuated by COVID-19 and
associated lockdowns resulting in a downward spiral
of global oil demand towards the end of FY 2019-
20. In these difficult times, RIL delivered profitable
operations at near normal utilisation levels mainly
due to its highly complex and flexible refining assets;
nimble crude oil sourcing; agile product evacuation;
diverse geographical footprint and proactive oil price
risk management. RIL’s efforts to sustain competitive
advantage has seen the augmentation of Coking
capacity to convert low value residue into high value
distillates and full scale commissioning of coke
gasification project to reduce energy costs
RIL continued to outperform Singapore complex
margins with a premium of US$ 5.7/bbl, significantly
above its 5-year average. It reflects the robust
operational performance, superior configuration and
consistent high utilisation of refineries at Jamnagar.
Refining EBITDA for the year was down 6.1%
y-o-y at ₹24,461 crore led by lower GRM of
US$8.9/bbl. The segment performance was
impacted by volatile crude prices and multi-year
low light distillate product cracks. Petrochemicals
integration has been further enhanced with
successful commissioning of High Purity Iso-Butylene/
Isobutylene Isoprene Rubber (HPIB / IIR) complex.
Petcoke Gasification complex operation has been
stabilised successfully and is being ramped-up, paving
the way for significant reduction in supplemental
energy cost. Petcoke gasification project, is
transforming Jamnagar refinery into a unique ‘residue-
free refinery’ by converting coke into valuable syngas.
RIL expanded its domestic fuel retailing footprint
to 1,398 outlets and maintained industry leading
throughput per outlet.
PERFORMANCE
R Revenue (` in crore) E EBIT (` in crore)
GRM (US$/bbl)
Outperformed Singapore complex refining margins by (US$/bbl)
8.4
8.6
9.2
8.1
8.6
10.8
11.0
11.6
9.2
8.9
3.2
0.7
1.4
2.2
2.3
3.3
5.2
4.4
4.3
5.7
R
E
STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTH
Best-in-class portfolio –
Combination of world class
scale and asset quality
• Largest single site refinery
with crude processing
capacity of 1.24 mbpd and site
complexity index of 21.1
Leveraging the asset linkages
• Commissioning of Petcoke Gasification complex
Crude selection and sourcing
• Crude processing window is further
has reduced supplemental energy cost significantly
• Continued enhancement of Diesel Hydro De-
Sulphurisation capacity to capture favourable
economics during IMO
• Debottlenecking of Coker unit augmenting RIL’s
augmented with de-salter up-gradation
and increasing sulphur handling capability
• 16 new crude grades processed, including
opportunity crude grades from North Sea,
Latin America and Straight Run Fuel Oil
(SRFO) / diluted bitumen, during IMO
• Ability to run a large basket of
capacity to convert residue to high value distillates
crudes across the quality spectrum
whilst being among lowest cost
refiners globally
• Launching of niche diesel grade during IMO
• Commissioning of HPIB unit for C4 value addition
• Ramp-up of domestic retail network to 1,398 outlets
• Flexible product slate with access
to high value markets
CDU (4 Trains)
• 1.24 mbpd, crude processing capacity
• Largest single site refinery – 1.5 times
the next largest
Coker (2 Trains)
• Highest coking capacity at single location with
capacity of 404 KBSPD. More than 2.5 times
the next largest
• Coker with world’s largest coke drum installed
FCCU (2 Trains)
• World’s largest FCCUs with total 425 KBPSD
capacity. 1.7 times the next largest
• Maximum Ethylene & Propylene producing
conventional FCCUs
Source: Internal estimates/market information
• Platformer (2 Trains)
• World’s largest CCR units in the world. About
1.5 times the next largest
• 2 units with combined capacity of 213 KBPSD
Petchem Plants
• Worlds largest Paraxylene Plant
• World’s largest Ethylene Plant (ROGC)
• World’s largest Polypropylene plant
Logistics and supply-chain
• Strong logistics infrastructure with
largest operating port and rail, road &
pipeline connectivity
• Adequate time-chartered vessels cover
during IMO to manage freight volatility
• Trading offices across major trading hubs
and tankages at key locations to capture
opportunity in the VUCA world
74
75
Management Discussion and Analysis (contd)BUSINESS PERFORMANCE: Refining and MarketingReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewNaye India Ka Naya Josh005,00,0004,00,0003,00,0002,00,0001,00,0002010-112011-122012-132013-142014-152015-162016-172017-182018-192019-203,87,52221,33412,81513,39215,82724,78223,53422,8803,93,9883,72,9234,05,8523,39,8902,34,9453,06,09525,0562,50,8339,8473,26,5329,1822,35,17540,00030,00010,00020,00050,000
Geographical representation of
crude grades sourced till date:
20
16
10
58
35
55
6
Middle East
Europe & Eurasia
Africa
S. & Cent. America
North America
Asia
Australia
Represents No. of grades of crude
sourced from the region (200)
MARKET ENVIRONMENT
WEAK OIL DEMAND GROWTH DUE
TO UNCERTAINTY AND TRADE
TENSIONS
Global oil demand growth at 0.8 mb/d
in CY 2019 was the lowest since 2011 as
the consumption was affected by global
economic uncertainty and trade tensions.
Brent crude oil price at US$64.3/bbl in
CY 2019 was lower by 9.5% y-o-y.
China accounted for more than three-
quarters of CY 2019 global oil demand
growth. Oil demand growth in China at 0.7
mb/d and in India at 0.2 mb/d was largely
structural and broad based, together
accounting for almost all of global growth.
Among products, global oil demand growth
was led by gasoline and middle distillates.
Chinese oil demand growth was driven
largely by transport fuels and petrochemical
demand. Despite the slowdown in activity
in the manufacturing sector, public support
for infrastructure projects is expected
to have supported the demand growth,
notably for gasoil.
India’s growth rate remained lower than
last year due to excessive monsoon and
sluggish economic activity.
GLOBAL OIL DEMAND
OECD
Non OECD
UoM: MBPB
98.9
99.2
100.5
100.7
3
.
1
5
6
.
7
4
2
.
2
5
0
.
7
4
5
.
2
5
1
.
8
4
0
.
3
5
7
.
7
4
93.5
2
.
8
4
3
.
5
4
Source : IEA
76
Asian Cracks
US$/bbl
Naphtha
Gasoline
Jet Kero
Gasoil
Fuel Oil
Q1
-9.1
5.7
12.2
13.0
-3.8
Q2
-7.8
7.9
15.8
16.2
-0.5
Q3
-2.2
8.1
13.9
15.4
-19.7
Q4
-2.9
4.9
8.5
11.9
-8.4
FY 2019-20
-5.5
6.7
12.6
14.1
-8.1
NON-OPEC GAINS MARKET SHARE
Global oil supply grew by 0.2 mb/d in CY 2019. Iran and Venezuela dominated the decline of
supply in 2019, while the US once again saw strong growth.
Sanctions and OPEC+ cuts wiped 1.9 mb/d off OPEC supply compared to 2018. Tough US
sanctions cut Iran’s crude production by 1.2 mb/d to 2.4 mb/d, the lowest annual rate since
1988. Venezuelan crude supply, hit by sanctions and under investment, fell further in 2019.
Non-OPEC oil supply continued to exceed expectations, posting gains of nearly 2.1 mb/d in
CY 2019. Record output from the US, Canada, Brazil along with robust gains from Norway and
the start-up of production in Guyana fueled the growth. Increased efforts to stem or reverse
declines in some of the more mature producing countries, including China, Mexico and
Colombia, also made a contribution.
OIL PRICES
(US$/bbl)
Brent
West Texas Intermediate (WTI)
Dubai
SLOWDOWN IN DEMAND AND
OUTBREAK OF COVID-19 PUSHED
THE CRUDE PRICES LOWER
Brent crude oil prices averaged US$61.1/bbl
in FY 2019-20, lower by 13% y-o-y.
Lower global demand and enough supply
kept oil prices in check. Oil prices in Q4
FY 2019-20 was lowest as the demand was
hit badly by the outbreak of COVID-19 in
China, the major demand hub.
MIDDLE DISTILLATES
Middle distillate cracks in Singapore were lower
in FY 2019-20 over the previous year on lower
global demand growth. Gasoil demand growth
accounted for close to 50% of the oil product
demand growth globally. Gasoil demand growth
was marred by warmer than usual winters and
lower than expected boost from bunker fuel
demand as VLSFO remained the bunker fuel of
choice to replace HSFO in new IMO low sulphur
regime. Supplies from start-up of new refining
capacities in China, Brunei and Malaysia also
added to the regional surplus, pressurising the
cracks. COVID -19 outbreak further deteriorated
the demand in Q4 FY 2019-20 amid surplus
supplies leading to crack weakening. Jet fuel/
Kero demand moderated amid slowdown in
global passenger traffic in 2019 which rose by
4.2% against year CY 2018 growth of 7.3%. ATF
demand in India grew by 10.4% y-o-y in CY 2019.
Air traffic in India grew by 5.1%, ending a four-
year streak of strong double-digit demand
growth. The closure of a major domestic carrier
and weakening of economic activity led to
slower demand growth.
FUEL OIL
Fuel oil demand declined in CY 2019 as the bunker demand transitioned towards IMO 0.5%
marine fuel and suppliers switched their operations towards LSFO and MGO. This has led
to crack weakening y-o-y and especially in Q4 CY 2019, when the Singapore HSFO crack
averaged US$ (19.7)/bbl.
LIGHT DISTILLATES
Gasoline cracks were slightly higher in US and flat in Europe and lower in Asian market in
CY 2019 as compared to last year due to moderation in gasoline demand growth across key
markets as well as higher inventory especially in the US during Q4 CY 2019. Growth in China
slowed after new car sales declined by 7.4% in CY 2019. Gasoline demand growth in India in
CY 19 was strong at 8.9% y-o-y showing high growth in first half of the year and slowdown in
car sales impacting growth in second half of the year.
REFINING MARGINS VIS-À-VIS GLOBAL BENCHMARKS
Regional Margins (US$/bbl)
Singapore Complex
RIL GRM
Rotterdam (Brent)
USGC (WTI)
FY 2019-20
3.2
8.9
5.0
14.2
FY 2018-19
4.9
9.2
5.6
13.6
FINANCIAL AND OPERATIONAL PERFORMANCE
FY 2019-20
(₹ in crore)
3,87,522
24,461
6.3%
FY 2019-20
(US$ in billion)
51.2
3.2
Revenue
EBITDA
EBITDA Margin (%)
FY 2018-19
(₹ in crore)
3,93,988
26,050
6.6%
FY 2017-18
7.2
11.6
6.3
12.8
% Change
(1.6%)
(6.1%)
Segment revenue marginally declined due to
lower price realisations in domestic as well as
export markets due to fall in crude oil prices
during the year. RIL’s refining throughput was
70.6 MMT during the year. Refining EBITDA for
the year was down 6.1% y-o-y at `24,461 crore
led by lower GRM of US$8.9/bbl. The segment
performance was impacted by volatile crude
prices and multi-year low light distillate product
cracks. RIL sustained its profitability in the
Refining business by optimising advantaged
feedstock sourcing, higher crude throughput
and maximising middle distillate pool to capture
favourable margins.
MARGINS
Singapore complex margins were lower y-o-y
due to lower cracks across products especially
the FO cracks which fell significantly in Q4
CY 2019. Freight was also higher for CY 2019
and averaged US$1.1/bbl against CY 2018
average of US$0.8/bbl. Margins in North
Western Europe was flat y-o-y but margins in
USGC were up y-o-y in CY 2019 due to slightly
higher gasoline and middle distillate crack as
compared to last year. Global refinery utilisation
edged lower in CY 2019 to 81.6% compared
to 82.3% in CY 2018. Utilisation in US were
lower due to unplanned refinery shutdown and
tropical storm. Asian Refinery utilisation were
down in CY 2019 due to lower margins.
OUTLOOK
Global oil demand is expected to fall by
8.6 mb/d in CY 2020 because of lockdowns
and travel bans in H1 CY 2020 due to COVID-19
outbreak and widespread shutdown of China’s
economy in Q1 CY 2020.
US crude supply is expected to decline
by 2.8 mb/d y-o-y by Q4 CY2020. Total
non-OPEC oil production is set to fall by
3.3 mb/d during 2020.
Demand recovery is expected in second half of
the year as the easing of lockdowns and travel
bans comes into effect.
CARBON NET ZERO
At Reliance, sustainability is integral to growth
in the decades to come. RIL has a vision of
carbon net zero at Jamnagar through a host
of sustainable long term initiatives such as
efficiency improvements; converting carbon
intense petroleum products into chemicals;
enhanced use of renewable energy in place of
conventional fuels; offsetting carbon dioxide
by growing algae and capture, utilisation and
sequestration of carbon.
DIGITALISATION
Reliance is pursuing digitalisation to gain
from its profound power by integrating
data across the value chain for seamless
working of its entire supply chain as well as
Finance, Human Resources, etc. Using a set
of cutting-edge solutions, it has automated
its systems and improved efficiencies. RIL is
at an advanced stage of building platforms
on next gen technologies for improved
trade execution and efficiencies, planning,
faster response time, customer delight
and insightful performance management.
We are also adopting technologies like
Artificial Intelligence / Machine learning
for advanced analytics to enable business
decision making.
DOMESTIC MARKETING
MARKET ENVIRONMENT
In FY 2019-20, the petroleum product
consumption remained stagnant at 214 MMT.
COVID-19 and ensuing shutdown had a
strong downward pull in the month of March
eliminating the overall growth of 2% which
the industry had sustained till the penultimate
month. While transportation fuels continue
to drive the growth, bulk of the growth is
driven by the steady rise in gasoline and LPG
demand. Improving road network, muted
on-boarding of country-wide urban metro
network and higher shift to gasoline vehicles
with steady decline in gasoline-diesel
differential has more than made up for sub
optimal growth in disposable income, overall
automobile sales and weak economic activity
across the country.
With 56% share in the overall energy
portfolio, transportation fuels continue to be
the major determinant of oil demand growth.
Gasoline demand grew by 6.0% to 30 MMT
and diesel demand fell by 1.1% to 82.5 MMT.
Barring macro-economic and environment
factors, demand growth has also been
supported by expansion in the retail network.
The total number of retail outlets in India has
grown to over 69,100 as both state owned
oil marketing companies and private players
expanded their network presence albeit at a
muted pace from previous years.
77
Management Discussion and Analysis (contd)BUSINESS PERFORMANCE: Refining and MarketingReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewNaye India Ka Naya JoshJan-Mar190.020.040.060.080.0100.0120.0Apr-Jun19Jul-Sep19Oct-Dec19Jan-Mar20JAN 2019JAN 2020FEB 2020MAR 2020040206080FEB 2019MAR 2019APR 2019MAY 2019JUN 2019JUL 2019AUG 2019SEP 2019OCT 2019NOV 2019DEC 2019 In the light of ongoing pandemic, the recent downward pull faced by the demand of petroleum
products particularly of transportation fuels will be guided by the extent and duration of
country-wide lockdown. Continued movement of essential commodities across the country
has ensured relatively lower impact on highway fuel demand.
Further, the industry is facing some headwinds from impetus on electric vehicles both in public
and private transportation, but this should be more than compensated by the growing spend
on infrastructure activities by Government of India (GOI) around their ambitious countrywide
road connectivity and port led development. Combination of these projects are expected to
enhance both inter and intra-city connectivity which in-turn will sustain demand growth of
petroleum products in the near future. Barring the ongoing shutdown related impact both in
the domestic and International sector, aviation sector has maintained a steady upward growth.
REFINERY SALES
(In MMT)
Exports
Captive
Domestic
13.4
15.6
FY 2019-20
72.6 MMT
17.3
41.9
17.0
FY 2018-19
71.7 MMT
39.1
PETROLEUM RETAIL BUSINESS
Having recommissioned the entire network,
RIL has focused on improving the quality of
sales across the operational countrywide
network of 1,398 fuel outlets.
continues to be significantly higher than the
competitors. Continued sales volume growth
in-spite of muted growth in the industry,
reflects a strong correlation with RIL’s ‘Desh
ka Sacha Pump’ campaign.
Dual strategy of locking large fleet
customers through unique Transconnect
propositions and attracting individual
customers via dynamic pricing has helped
RIL to further strengthen the leadership
position in industry throughput. During
FY 2019-20, RIL registered over 10% y-o-y
growth in average outlet sales volume.
Both the count and volume throughput from
active customers enrolled in the marquee
fleet programme – Transconnect has grown
consistently during FY 2019-20. Driver
loyalty program combined with provision of
value-added fuel has further strengthened
the customer value proposition.
RIL has outperformed across all four quarters
in retail diesel and gasoline sales. It registered
y-o-y growth of 9.8% in retail diesel and 14.7%
in retail gasoline volume compared to (1.5%)
and 6.3% for industry, respectively.
Share of fleet (Transconnect) sales in
the retail volumes has further grown and
78
Starting mid- March, retail fuel sales across
the country were severely impacted by the
lockdown. However, on account of strong
customer value propositions and strategic
presence across highways, RIL fuel outlets
had relatively lower impact on sales and
should return back to regular sales volumes
within a month of the removal of lockdown in
their respective geography.
A) OPERATING STRATEGY
RIL serves its family of satisfied customers
with a unique Q&Q assured fuelling
experience. Being technically equipped,
RIL’s refinery migrated to BS VI fuels
ahead of the 1st April, 2020 deadline
provided by Government.
Building unmatched value proposition, RIL
continues to augment its customer value
proposition through seamless integration
with Reliance Retail and Reliance Jio.
Co-located convenience stores have drawn
higher footsteps translating to increased
fuel sales. RIL further intends to leverage
this with a proposed network-wide rollout of
these stores in the future.
Leveraging the high end Jio fiber
connectivity, RIL is piloting a gamut of next
generation technologies, these would
go a long way in adding automation led
operational and process efficiency.
With the exponential growth in last mile
fuel delivery, RIL is redefining the Indian
fuel retailing landscape. Over 1,000 sites
are serving diesel through a mix of the
packaged containers and mobile dispensing
units to the non-transport sector. With all
permits in place for in-house production of
High Density Polyethylene (HDPE) packs,
RIL should be able to bring in significant
process synergies. RIL will be the pioneering
Indian Oil Marketing Company to launch light
weight and tamper proof HDPE packs for
doorstep delivery in the country.
Riding on industry-leading pioneering
technology, synergies of group companies
and proactive focus on customer’s
latent needs, RIL will continue taking the
fueling experience of Indian customers to
even higher levels.
B) DIGITISATION STRATEGY
With the onset of digital media, RIL’s
Customer Service is rapidly evolving. In line
with the changing times, RIL is gradually
increasing its footprint in the digital world.
By adopting the next generation
technologies such as AI, Blockchain and
Internet of Things (IoT); RIL continues to
improve business processes and enhance
customer experience.
RIL has rolled out state-of-the-art new
age fuel dispensers across the network.
Empowering customers to monitor 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
Unlike the retail segment, the Bulk Diesel
continued the trend of muted y-o-y growth
of 0.4% in spite of the impact of shutdowns
in March 2020. The industry segment
continues to maintain the overall demand in-
spite of slowing industrialisation and vastly
improved electrification. During the year, RIL
registered a y-o-y volume growth of 10.8%
increasing market share to 8.8% despite
expected demand contraction and margin
pressure. Non-railway business registered
an impressive 16% y-o-y growth.
Building on strong customer connect,
RIL has been able to further strengthen
relationship with railways reflected in
increased volumes and margins. Specific
focus on infrastructure, construction
and mining segment has provided
healthy returns.
Growth in HSD – Direct sales volume would
be driven by continued volume growth from
railways, sourcing higher volume share in
State Transport Units (STUs), designing
unique operating models along with
strengthening presence in the high potential
markets across the country.
B) AVIATION TURBINE FUEL (ATF)
The double-digit growth observed over
52 consecutive months might have been
stalled. However, India continues to be
one of the fastest growing aviation market
in the world for the 5th consecutive year.
Air-passenger traffic in India, one of the
world’s fastest-growing aviation markets,
rose 9% even in February, 2020 after the
Indian carriers recouped to full capacity
that was lowered following the closure of
a major domestic carrier in the first few
months of FY 2019-20 as well as disruptions
at Mumbai airport owing to construction
and maintenance.
Following the COVID-19 pandemic,
while travel restrictions were being
imposed elsewhere, India was largely
unaffected till the end of March, 2020
before the sharp escalation in travel bans
globally and lockdowns impacted India’s
aviation sector too.
On account of its network strength,
cost competitiveness, industry leading
technology and best-in-class service
standards, RIL improved its volume share
in the domestic market. Having the highest
market share in 20% of the operating airports
continues to reinforce the customer’s trust in
Reliance Aviation.
RIL is looking to increase its network to
45 locations as against 30 at the end of
FY 2019-20 and is well geared to benefit with
the growth in the Indian aviation market.
C) FACILITATING NATION’S ENERGY
SECURITY
75% of RIL’s production of transportation
fuels from DTA refinery was absorbed
in the Indian market during FY 2019-20.
While sales through own retail network
and, HSD – Direct segment has grown, the
volumes through bridging PSU product
deficit has also remained at similar levels
from previous year.
RIL continues to be the largest supplier of
LPG to Public Sector OMCs. Aligned to GOI
vision of creating a healthy environment
in Indian kitchens, RIL through robust
KYC norms and innovative distribution
model continues to target improving the
quality of life for rural household and
migrant labourers.
PROJECT UPDATE
PETCOKE GASIFICATION:
• The Petcoke gasification, the world’s
largest, achieved steady-state operation,
after a steep ramp-up
• Major accomplishments include, 100%
design petcoke feed and 120 days of
continuous gasifier operations
• This year’s focus shall be to maximise
syngas availability of all gasifiers
• The Jamnagar petcoke gasification
has achieved iconic status in the
gasification universe.
Leveraging
Industry 4.0: Next generation
initiatives
On the Lubes growth curve with
Relstar: Empowerment driven
growth
• Machine Learning and Advanced Algorithms for price
• Created unique win-win propositions for customers,
forecasting led to increase in market share
influencers and channel partners
• Real-time centralised CCTV analysis across network to
• Facilitated ownership mindset by grooming channel
monitor staff’s service compliance
partners as entrepreneurs
• Automatic Number Plate Recognition for proactively
• Technology led 100% remuneration transparency
identifying customer and enabling promotion
Increased process compliance and much superior
customer experience
33% CAGR in last 3 years against ~1-2% for industry;
Rated as “Prestigious Rising Brand 2020”
79
Management Discussion and Analysis (contd)BUSINESS PERFORMANCE: Refining and MarketingReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewNaye India Ka Naya JoshOUTCOMEOUTCOMEACTIONACTION Product flow chart
A diverse set of products
and end applications
NATURAL
GAS
CRUDE
OIL
Light ends
Middle distillate
Solids/fuels
Refinery C4
Offgas
Propane
Naphtha
LPG
Gasoline
Diesel
Jet/Kero
Fuel Oil / CBFS
Petcoke
Sulphur
BUTYL RUBBER
Jamnagar Expansion Project
Refinery C4
HPIB
Butyl Rubber
Halobutyl Rubber
Butene-1
Halogen
Ethane/Propane
Ethane
Ethylene
Propylene
C4's
EDC
HDPE/LLDPE
LDPE
EO
PP
MTBE
Butene-1
HTPB
Butadiene
Cyclohexane
C6+
Benzene
Toluene
Xylenes
PETCOKE GASIFICATION
Jamnagar Expansion Project
Petcoke
Coal
Syngas
Sulphur
Hydrogen
SNG
High Purity Isobutylene
CBFS Carbon Black feedstock
Di-Ethylene Glycol
DEG
Ethylene Di-Chloride
EDC
Ethylene Oxide
EO
FDY
Fully Drawn Yarn
HDPE High Density Polyethylene
HPIB
HTPB Hydroxyl Terminated Polybutadiene
Linear Alkyl Benzene
LAB
LDPE
Low Density Polyethylene
LLDPE Linear Low-density Polyethylene
LPG
Liquefied Petroleum Gas
MEG Mono-Ethylene Glycol
MTBE Methyl Tertiary Butyl Ether
PBR
PET
PFF
POY
PP
PSF
PTA
PTY
PVC
SBR
SNG
TEG
VCM Vinyl Chloride monomer
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
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
80
RELIANCE COMPOSITE SOLUTIONS
Glass rowing
(procured)
Multiple raw materials PTA, EO, Styrene, etc.
(captive / procured)
Glass Fibre
Resin
(Polyester / Epoxy / Phenolic)
Pultrusion
Filament
Winding
Mass Transport
Unit
Centrifugal
Casting
Sheet Molding
Wind Mill Unit
General Molding
Product plants
End use applications
81
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewNaye India Ka Naya Josh Management Discussion and Analysis (contd)
BUSINESS PERFORMANCE
Petrochemicals
VISION
MISSION
To be among the Top 5
most profitable
Petrochemical Companies
in the World
Sustainably Enrich Lives
and Deliver Smiles
by Harnessing the
Power of Chemistry
38.4 MMT
Highest petrochemical
production
INFRASTRUCTURE
Roads, buildings, windmills, solar
panels and telecom poles
PHARMA AND HEALTHCARE
Medicine blister packs, syringes,
blood bags, IV packs, bottles, lab
coats, masks and PPEs
TRANSPORT AND AUTOMOTIVE
Metro, cars, mass transport,
tubes and tyres
AGRICULTURE/
PLASTICULTURE
Drip irrigations, pond
linings, crop/fruit covers,
sprinklers, mulching and
silage bags
INDUSTRIAL
Cables &
ducting and
reinforcements
WATER STORAGE
AND SUPPLY
Water storage
tanks and PVC
pipes
RESIDENTIAL
Apparels, beds, sofas, rugs,
pillows, wood floors, curtains,
consumer durables and FMCG
SPORTS
Golf balls, turf and sportswear
PACKAGING
Plastic bottles and disposable
packages
82
83
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh Nikhil R.
Meswani
Par
Singh
Anant
Ambani
Seema
Nair
Vipul
Shah
FY 2019-20 was a challenging year for the global
petrochemical industry. While on supply side, we
witnessed significant capacity additions, on demand side,
geo-political issues caused uncertainty and impacted
trade flows and consumer demand. An exceptional
development - COVID-19, only further disrupted end use
demand and caused uncertainty across the globe.
Amidst this unprecedented and volatile business
environment, our Petrochemicals business continued to
perform, and delivered an EBITDA of `30,933 crore while
maintaining a healthy EBITDA margin of 21%. This resilient
performance was driven by our broad product portfolio,
deep integration coupled with feedstock flexibility that not
only diversifies our contribution mix but also significantly
reduces earnings volatility across market cycles. As the
impact of COVID-19 intensified in India towards the end of
the fourth quarter, we responded by adapting our plants
and product mix and our customer relationships to ensure
a continuous supply of key packaging raw materials into
the essential domestic sectors of health and hygiene, food
and milk packaging, pharma and medical.
We not only strengthened our B2B2C business model
transition through end-consumer initiatives like R|Elan™,
but also expanded our advanced material portfolio with
value-added, carbon-wrap solutions such as RelInforce™.
During the year, we continued to create an enabling
ecosystem for widespread adoption of circularity to help
position India as a global leader in sustainability and
plastic recycling – we recycled more than 2 billion
post-consumer PET bottles into high-value fibres. We also
launched ReRoute™ – our Waste Plastic to Road Initiative
after extensive proof of concept testing with 40 km of in-
house road constructed at our Nagothane Manufacturing
Division.
World-class production facilities
84
PERFORMANCE
R Revenue (` in crore) E EBIT (` in crore)
EBIT Margin (%)
14.6
14.1
10.5
7.6
8.1
8.6
12.4
14.1
18.8
17.6
R
E
STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTHS
Robust asset profile
• 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
Sustaining value creation
• Refinery off-gas cracker, a unique project and expansion of
downstream capacity to cater to expected demand growth
• Ethane imports continue to enable a cost advantage and
feedstock security
• Strong brand initiatives enabling Reliance’s shift in focus
towards consumers
Competitive strengths
• 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
85
BUSINESS PERFORMANCE: PetrochemicalsReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh002,00,0001,60,0001,20,00080,00040,0002010-112011-122012-132013-142014-152015-162016-172017-182018-192019-201,45,26425,5477,1598,4038,29121,17910,18632,3941,72,06594,1771,04,01896,80482,4101,25,29912,99092,4729,06086,4629,54067,69240,00030,00010,00020,00050,000
HARNESSING THE
POWER OF CHEMISTRY
Reliance is constantly harnessing the
power of Chemistry to deliver Smiles to its
customers and end consumers.
Chemistry for Smiles: A creative
expression that connects science with
emotions and conveys how Reliance
Petrochemicals, the industrial giant using
chemistry, works towards the intangible
sweet emotions of life — smiles.
Every business in the Petrochemicals
segment uses chemistry to create
formulations that are transformed into a
diverse range of end products for everyday
life – be it polyesters for apparel, home
fashion and packaging potable liquids or
elastomers for tyres and automotive parts,
polymers for healthcare and agriculture or
aromatics for detergents and soaps.
The positive attributes of these very
products that all consumers use and
interact with daily, underlines the necessity
and importance of Reliance Petrochemicals
in everyone’s lives.
Reliance Petrochemicals in that sense
is actually the ‘Industry of Things’
that enable products and services
which make the modern life healthy,
convenient and enjoyable.
This relentless focus on creating a positive
impact and ‘transforming life into quality life’
for our end consumers is what drives our
competitive edge and differentiates us.
1 Olefin
2 Polymers
3 Polyesters
Description
Unsaturated open
chain hydrocarbon
Large molecule with
repeating subunits
Synthetic Fibres
4 Aromatics and Fibre
Intermediates
5 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/
Associated
Industries
Capacities/
Global Market
Position
Industrial Chemicals
and Polymers
Construction, Agriculture,
Automobile, Consumer
Goods, Packaging
Textile / Apparel
industries and
Beverages
Feedstock for
petrochemical products
Ethlyene: 3.6 MMTA
PE: 2.3 MMTA/ 12th
PP: 2.9 MMTA/ 6th
PVC: 0.7 MMTA/ 17th
PFY and PSF:
2.1 MMTA
PET: 1.1 MMTA/ 8th
Polyester and textile
industries, Industrial
Chemicals
PTA: 4.9 MMTA/ 4th
MEG: 1.5 MMTA/ 8th
PX: 4.8 MMTA/ 2nd
Tyres and
Automobile
PBR: 120 KTA
SBR: 150 KTA
MARKET ENVIRONMENT
FY 2019-20 witnessed a volatile energy
price environment, which echoed in the
petrochemical feedstock and product
prices. Global macro factors such as trade
barriers, excess capacities, Geo-political
uncertainties, and regulatory pressure
among others, weighed on demand and
price, resulting in decline in petrochemical
margins across regions.
In face of a weakened macro environment,
the Petrochemical business still delivered
a resilient operating and financial
performance, heading into the COVID-19
crisis. RIL strategically optimised logistics
and expanded its exports across both
polymers and polyesters to compensate
for the slowdown in domestic markets
towards the end of the financial year,
while fully catering to the essential
domestic sectors first.
OLEFINS AND POLYMERS - STABLE
DEMAND ENVIRONMENT
Global demand for ethylene increased
by 4% y-o-y to 167 MMT in 2019, while
operating rates remained stable at
near 90%. New capacities of 7 MMTA
were added during the year, resulting
in capacity addition significantly
outpacing demand growth.
Global polymer demand (PE, PP and PVC)
in 2019 is 232 MMT. Polyethylene (PE)
accounted for 46%, Polypropylene (PP)
34% and Polyvinyl Chloride (PVC) 20%
of the market. Global polymer demand
growth remained subdued during the year
amid concerns over economic outlook,
trade conflicts between USA and China
and several geo-political uncertainties.
Outbreak of COVID-19 during Q4 of FY
2019-20 in China and other countries
caused slowdown in the industry. The
global demand growth of polymers is
expected to remain subdued in near
term. However, demand growth in Asia
is likely to be healthy led by India and
China as the economies emerge from the
COVID -19 crisis.
86
PRICE AND MARGIN
ENVIRONMENT - POLYMER CHAIN
Average naphtha prices in Asia were down
by 16% y-o-y in FY 2019-20 amidst softening
of crude price and slowdown of demand
on economic concerns. Ethylene prices
in Asia softened by 30% with pressure
from new capacity additions in the USA
and weakening downstream PE prices.
Propylene prices in Asia also weakened by
11% with falling PP prices and on purpose
PDH unit turnarounds in North East Asia.
South East Asia Polymer Margins
(US$/MT)
HDPE-Naphtha
PP-Propylene
PVC-EDC-Naphtha
Source: Platts and ICIS
FY
2019-20
FY
2018-19
390
166
462
576
249
465
Overall polymer margins softened due
to weakening of prices. On y-o-y basis,
PP and PE margins corrected by 33% and
32%, respectively. PVC margins remained
largely stable.
POLYESTER AND FIBRE
INTERMEDIATES
Polyester sector during FY 2019-20 was
influenced by the USA - China trade war
and further impacted by the COVID-19
outbreak in the later part of the year. As the
outbreak spread across China and many
nations across the globe, governmental
restrictions to contain the outbreak were
imposed. Consequently, the demand for
polyester weakened. Prices during the
year declined reflecting the fluctuations
in the feedstocks; margins however
remained strong for PFY and PSF while PET
deltas declined.
COVID-19 in Q4 FY 2019-20 impacted
the polyester and downstream rates
especially in China, which in turn has had
an adverse effect on the upstream demand,
thus leading to a build-up of inventories.
However, health-care and hygiene sector
witnessed a spike in demand due to the
COVID-19 crisis with increased usage of
medical textiles and non-woven.
During FY 2019-20, PX markets witnessed
capacity addition of 12 MMT against an
estimated consumption growth of 3 MMT.
The start-up of new large PX units in China
dampened the market sentiments and
concerns, and excess supplies from the new
units resulted in squeezed margins.
PTA markets witnessed balanced supply
demand scenario with high operating rates
until the third quarter. The start-up of new
capacities in the later part of the year set in
the bearish tone in the markets. To add to
the weak market sentiments, the build-
up of PTA inventories, due to slower than
expected polyester demand before and
after the Chinese Lunar New Year holidays,
impacted prices and margins. During
FY 2019-20, PTA prices decreased 24%
and margins dropped 14% y-o-y, but still
remained above the 5-year average.
The MEG market witnessed volatility
throughout the year. Increased demand in
the early part of the year and geo-political
tensions in the Middle East reduced port
inventories, while supporting price and
margins. Start-up of large MEG units in
China further weighed down an already
oversupplied market resulting in a stock
build-up of over 1MMT at year-end. MEG
prices slumped 32% y-o-y during FY 2019-
20 and margins weakened 48% y-o-y below
the 5-year average.
Global PET prices fluctuated in line with
the volatility in feedstock prices as geo-
political tensions dampened the buying
sentiments across the regions. Given the
essential nature of packaging in the food
and beverage sectors, PET business has
been much less affected by the COVID-19
crisis than other polyester products, and
remains one of the most advantaged
polymers so far.
Polyester and fiber
intermediates margins
(US$/MT)
FY 2019-20 FY 2018-19
PX
PTA
MEG
POY
PSF
PET
292
155
215
282
163
158
479
181
417
262
154
222
Source: Platts, ICIS, CCF Group
Elastomers
During CY 2019, the global Natural Rubber
production decreased by 1% on y-o-y basis
(from 13.887 MMT to 13.731 MMT), due to
fungal disease in rubber plants in Thailand
and Indonesia. Demand growth was flat at
13.5 MMT. Slowdown in economic activities
driven by the USA-China trade conflict,
effect of COVID-19 and slump in automobile
industries weighed on operation and
rubber consumption.
Global capacity of Butadiene has increased
by 6.6% to 16.23 MMT, with additional
capacities getting commissioned up in
China and Malaysia. The Operating Rate
has come down, from 77% at the earlier
part of the year to less than 70% by March
due to the COVID-19 pandemic. With
the downstream auto sector severely
affected, the operating rates of Butadiene
is expected to remain at similar levels in
the short term.
Global capacity of PBR is 4.5 MMTA
in FY 2019-20 with average utilisation
rate of 76%, while the global capacity of
E-SBR is 4.2 MMTA in FY 2019-20 with
average utilisation rate of 78%. The global
capacity of IIR is 1.9 MMTA with average
utilisation rate of 64%. PBR and SBR
demand is directly linked to automobile
and tyre sectors.
LEADING GLOBAL
PRESENCE ACROSS AN
INTEGRATED PRODUCT
PORTFOLIO
The Company has built a leading presence
across all key product portfolio by building
state of the art, highly integrated facilities,
driving operational excellence across
every facet of the business, and creating
Innovative Sustainable Solutions for the
industry. With every expansion, Reliance
has executed world scale investment
projects in record times.
Polymers
The Indian polymer market registered
growth of about 4% in FY 2019-20 y-o-y.
PE demand growth was healthy at 7% y-o-y
driven by policy boost for infrastructure,
irrigation and other water management
projects and growth in e-commerce
sector. PP demand growth was at 2% y-o-y
87
BUSINESS PERFORMANCE: PetrochemicalsReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh subdued from auto sector and slowdown
due to COVID-19. Overall good demand
growth has been observed form the health
and hygiene sector (PP fiber filament), food
and FMCG packaging (BOPP and LLDPE
films), rigid packaging for edible oil, hair oil
and sanitizers (PP and PE), milk packaging
(LDPE), pipes and drip laterals for irrigation
(PE and PVC). Increasing awareness
and policies against single usage plastic
resulted in lower demand growth in the first
half of the year.
Polymer Production - RIL
(Production in
MMT)
PP
PE
PVC
Ethylene
FY
2019-20
2.9
2.3
0.8
3.8
FY
2018-19
2.9
2.1
0.7
3.7
RIL has achieved highest ever polymer
production during the year. RIL is a leading
global manufacturer of polymers with six
state-of-the-art manufacturing facilities. RIL
maintained its leadership position in Indian
polymer market with a domestic industry
market share of 33%.
RIL’s continuous efforts towards
strengthening its supply chain network
enabled the Company to place polymers
in more than 70 countries globally during
the year. RIL exported 1.1 MMT of polymers
during the year.
Polyester and Intermediates
Production
RIL production*
(Production
in MMT)
POY
PSF
PET
PX
PTA
MEG
* Malaysia numbers included
FY
2019-20
1.0
0.7
1.2
4.2
4.9
1.7
FY
2018-19
1.1
0.7
1.2
4.3
4.9
1.7
During FY 2019-20, Indian polyester
filaments market grew by 12% on a y-o-y
basis, staple demand weakened marginally
by 1% y-o-y, while PET market grew by
88
10%. Polyester fibre and filament market
witnessed weakness at the start of the year
due to weak demand and financial crunch
with end users which improved later ahead
of Diwali and Christmas celebrations.
PET markets remained buoyant amidst
strong demand for beverage consumption
due to extended summer and national
events at the year beginning which
continued amidst festivities later in the year.
During fourth quarter, domestic polyester
demand remained subdued amidst
fluctuations in raw material prices and weak
downstream demand, with nationwide
lockdown towards quarter-end. In India,
with the spread of the virus since early
March 2020 and subsequent lockdown, the
downstream polyester industry, which is
labour oriented, was completely shut down.
During FY 2019-20, despite an inclement
business environment, RIL has maintained
its market share and optimised
inventory levels.
Domestic Elastomer Production
Elastomer production
Elastomer production — India
(Production
in MMT)
Butadiene
PBR
SBR
FY
2019-20
FY
2018-19
0.5
0.1
0.2
0.4
0.1
0.2
Elastomer production — RIL
(Production
in MMT)
Butadiene
PBR
SBR
FY
2019-20
FY
2018-19
0.2
0.1
0.1
0.2
0.1
0.1
Indian elastomers sector witnessed a weak
demand environment during the year, as
the automobile industry went through an
unprecedented downturn with sales of
new vehicles plummeting significantly.
Weak consumer sentiments coupled with
transition to BS-VI w.e.f April 1, 2020, led to
muted demand. During Q4, the COVID-19
pandemic crippled the demand of auto
industry further.
Butadiene witnessed production growth
of 6% to 482 KT during FY 2019-20. With
domestic demand steady at 350 KT, the
balance volume is exported. The demand
of Butadiene was affected during the
lockdown period in the third week of March
and the demand is likely to be muted in
the next quarter.
Total PBR demand in the industry stood
at 0.185 MMT, de-grew by 5%. As for the
production front, PBR achieved its highest
ever production at 0.13 MMT for
FY 2019-20. Even though the entire
automobile industry was impacted by
overall economic slowdown, RIL was able to
maintain market share in PBR.
SBR demand in India in FY 2019-20 is
0.25 MMT. Although industry witnessed
de-growth of 4% in FY 2019-20, Reliance
increased its SBR production by 6% from
0.12 MMT in FY 2019-20 with wider product
portfolio and niche grades. Imports
witnessed de-growth of 33% in FY 2019-20.
SUSTAINING VALUE
CREATION TO DRIVE
BUSINESS PERFORMANCE
RIL is one of the most vertically integrated
petrochemicals producers globally with
a leading market position across product
categories. World class production facilities
and industry leading operating rates across
products, helped deliver a sustainable
operating leverage across cycles. Refinery
off gas cracker, a unique project and
expansion of downstream capacity allowed
to meet the domestic demand, substitute
imports and save foreign exchange for the
country. Recent commissioning of High
Purity Iso- Butylene (HPIB) unit for C4 value
addition is another example of continuous
value creation.
LEVERAGING INTEGRATION
TO DELIVER PROFITABLE
GROWTH ACROSS
VALUE CHAINS
Fully integrated operations continue to
provide cost competitiveness. Advantaged
feedstock supplies provided feedstock
security and further enhanced economies
of scale. Furthermore, our deep integration
(O2C) enables full capacity utilization, while
minimising dependence on external feeds. With the recent drop in crude and flattening of the cost curve, RIL regularly optimized sites to
take advantage of the feedstock flexibility between Naphtha, Ethane, Off-Gases and C2C3, and enhanced margins.
FINANCIAL AND OPERATIONAL PERFORMANCE
Financial Performance
Revenue
EBITDA
EBITDA Margin (%)
EBIT
EBIT Margin (%)
FY 2019-20
(₹ in crore)
FY 2019-20
(US$ in billion)
1,45,264
30,933
21.3%
25,547
17.6%
19.2
4.1
3.4
FY 2018-19
(₹ in crore)
1,72,065
37,866
22.0%
32,394
18.8%
% change
(15.6%)
(18.3%)
(21.1%)
FY 2019-20 revenue from the
Petrochemicals segment decreased by
15.6% to `1,45,264 crore (US$19.2 billion)
due to lower price realisations with
weaker demand in well-supplied markets.
Petrochemicals segment EBITDA was
at `30,933 crore (US$4.1 billion), down
18.3% as compared to previous year,
due to lower margins in key products —
Paraxylene, MEG, PET, Polypropylene and
Polyethylene. However, EBITDA was still
high at 21.3%, a globally envious position
in such volatile markets. The resilient
performance of petrochemical segment
was led by feedstock flexibility, higher
volumes and optimization of product mix
to meet changing demand and application
trends while leveraging diversified
distribution chain.
RIL strategically optimised logistics and
expanded its exports across both polymers
and polyesters to compensate for the
slowdown in domestic markets towards the
end of the year, while fully catering to the
essential domestic sectors first.
FLEXING AN AGILE
BUSINESS MODEL
WITH SAFETY
FIRST APPROACH
Pan-India supply chain, proximity to
key consuming markets and diversified
consumer base enabled near real-time
product placement amidst a global
slowdown.
With the spread of Covid-19 across India,
RIL, taking full advantage of its global
reach and deep customer connect, quickly
shifted towards significant exports mode,
and inverted / pivoted business model from
20%/80% (exports/domestic) to 80%/20%
in just 10 days.
RIL also switched to multimodal logistics
using India’s extensive rail networks, as
drivers availability became a challenge,
within a week of lockdown to quadruple its
multimodal dispatches in April-May in a safe
and responsible manner.
Over the course of the year, RIL has
significantly enhanced road safety through
our vehicle tracking & Emergency Response
Center (ERC) – FIRST OF ITS KIND IN INDIA.
At every 100 kms of the hazardous
cargo movement route, Reliance has
an Emergency Response Centre which
analyses tanker movement (24x7) to
ensure no accidents take place, however
if any unfortunate accident happens, the
ERC team quickly provides response
within 60-90 minutes.
ERC played a major role during
COVID -19 lockdown by guiding drivers
(of all trucks) towards safer routes and
also helping them with respect to food (by
providing location of operational Dhabas).
This was highly appreciated by all the
transporters and drivers.
NEW PRODUCT DEVELOPMENT
• 30 MFI high crystalline PP impact
copolymer grade was introduced for
Injection molding applications. It is an
ideal material where high stiffness,
high flow and good impact strength is
required like automotive and appliances
parts. The grade has high flow and fast
crystallisation characteristics which
makes it suitable for large-size articles
with lower cycle times.
• Anti-sea erosion works with PP
Geo-bags and road stabilisation
works with PP Bi Axial geogrids
commenced in India.
• Multi-layer PP containers were
developed mainly for food packaging,
which have the properties of gas
barrier and are treated with anti-mist
agents to maintain high shelf-life of the
food products.
• 20 litre containers for diesel storage
and retail, have been manufactured
using HDPE as per safety norms
and regulations.
• Recyclable pallets for material handling
and transportation have been developed
using LLDPE roto-molding grades.
The existing pallets available in the
market contain PU foam to achieve
the stiffness, which make it difficult for
recycling, as separation of PE and PU is
technically difficult. Newly developed
pallets by RIL contain LLDPE skin
layer and in-situ rigid LLDPE foam to
fill the cavity, replacing PU foam. This
also helps to reduce the pallet weight
by 7-10%, which in turn reduces the
transportation cost.
89
BUSINESS PERFORMANCE: PetrochemicalsReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh TRANSFORMING RIL PETROCHEMICAL BUSINESS,
BUILDING A CONSUMER FACING BUSINESS
Circular Design Challenge
Reliance is transforming Petchem’s traditional business to a solutions driven consumer facing organisation. This creates a demand pull,
ensures higher margins and will help insulate from market volatilities.
Petrochemicals
R&M
Naphtha
Propane
Cracker
Ethane
C3/ Reformate
C2/ C3/ C4
Polymers
Elastomers
Polyesters
Ethane Imports
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
Deliver
sustainable solutions
Global business
process
Reliance Management
Systems
Integrated SCM
CRM
R-HR
World-class IT and
analytics
Automatic Process
Optimisation
Price Management
System
Forecasting Tools
SAP-BPC
R|ELAN™ — FUTURE READY FABRICS
R|Elan™ Fabric 2.0 - the next-generation
fabric brand, made with specialty
polyester fibres.
R|Elan™ has continued to grow by
consolidating its brand partnership with
more than 50 brands and extending its
value chain globally, resulting in a major
jump in exports of R|Elan™ specialty
products in the last financial year. Apart
from this, R|Elan™ has continued to
penetrate new product categories such
as ethnic wear, intimate wear, sportswear,
etc. and initiated marketing activities that
seamlessly sync and showcase the benefits
of its growth engines.
90
R|Elan at Lakme Fashion Week (LFW).
Circular Design Challenge
The 2nd edition of Circular Design Challenge
(CDC) presented a new winning champion
of eco-fashion to the world. Malai
Biomaterials Design was selected from
a final shortlist of five contenders. This
pioneering event promoting circular fashion
and incentivising waste-reduction solutions
was conducted by R|Elan™ ‘Fashion For
Earth’ in association with Lakme Fashion
Week (LFW) and the United Nations
Environment Programme in LFW 2020.
R|Elan™ has conceptualised and consistently
supported this circularity initiative to
encourage sustainable solutions in the
fashion industry.
This year’s event took place in February
2020 post completion of the year-long
engagement that ensured scalability,
growth and recognition for the first ever
winner of our Circular Design Challenge.
Extending our value chain to
global markets
During the year, RIL joined hands with
Turkey’s textile behemoth, Kıvanç Tekstil.
They are partnering with Reliance to
use R|Elan™ GreenGold — an innovative
sustainable fabric — and market it to
leading global apparel brands who source
their requirements from Turkey to meet
the ever-growing demand of environment
friendly apparels for consumers across the
world. The value chain of R|Elan™ was also
expanded to Malaysia and Bangladesh
where six new partners were added.
Launch of Raymond® Sustainouva
powered by R|Elan™ GreenGold
RIL and Raymond Group, India’s leading
fashion and textile manufacturer and
retailer, launched Sustainouva™ – an
eco-friendly and sustainable range of
fabrics manufactured using R|Elan™
GreenGold. The Sustainouva™ range
redeemed around 1 million PET bottles
from landfills. The fabric range is available
at 1,500 stores of the Raymond Shop
across 700 cities. This was also supported
by in-store POS kits made by R|Elan™,
which showcased the process of R|Elan™
GreenGold from fibre to Sustainouva fabric.
R|Elan™ Run to make
India Litter Free
Sustainability and promoting sustainable
practices have been a major focus for
R|Elan™. This extends to and has a significant
emphasis on all its marketing activities such
as the R|Elan™ Run to make India Litter Free
– a plogging (combination of jogging with
picking up litter) run that began from Kochi
culminating in Delhi. The run covered 1,000
km across 50 cities in India and collected
tonnes of littered plastic waste. All plastic
bottles collected from this activity was sent in
for recycling to our PET bottle recycling facility
for manufacturing R|Elan™ GreenGold, one of
the greenest man-made fibres in the world.
R|Elan™ Fitness Party
During the year, R|Elan™ launched a few
fitness events titled R|Elan™ Fitness Parties
at major shopping centers in consuming
markets such as Chandigarh, Ludhiana,
etc. These were conducted in partnership
with some of our brand partners involving
celebrity fitness enthusiasts to ensure
desired levels of consumer engagement.
RELWOOD™ – ONE MATERIAL,
ENDLESS POSSIBILITIES
Relwood used for outdoor decks
RelWood™ is a composite made with a
proprietary blend of natural fibres and
polymers with the look and feel of wood
but without the problems associated with
wood. The special attributes of RelWood™
— thermoforming, weatherability, water and
termite proof, and fire retardancy – enable
usage in all applications where wood
is used, and in many more where wood
cannot be used.
Applications where RelWood™ has already
been installed include facades, decking,
furniture, pergolas, flooring and paneling.
RIL is also developing a suite of solutions
– such as pre-finished doors with door
frames – which will deliver greater value
to our customers.
91
BUSINESS PERFORMANCE: PetrochemicalsReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh RCS has been awarded development
order from BEML, Bengaluru to supply
composite components of metro train set
for the Mumbai Metro project. RCS is also
working with other similar metro projects
across India. RCS successfully completed
development orders of Integral Coach
Factory (ICF), Chennai for side panels and
toilet modules for local and passenger
coaches leading to RCS being awarded
vendor status for supply of composite
components to Indian Railways. RCS has
initiated participation in global markets of
Fibre-reinforced Plastic (FRP) components
for application in Infrastructure.
Few Other major developments
RCS received
•
IRIS Certification for Design,
Development and Manufacturing of
Vehicle Body, Vehicle fittings and
Interiors for rail applications
• BIS certification for Glassfiber-reinforced
Plastics (GRP) pipes for potable water
(IS12709) and also for sewerage,
industrial waste and water other than
potable (IS14402)
•
Initiation of exports for GRP parts used
in infrastructure
• Petroleum & Explosives Safety
Organization (PESO) approval received
for Underground Fuel Storage
Tank applications
RELINFORCE™
Pipeline rehabilitation
Changing social needs, upgrading of design
standards, increased safety requirements
and deterioration due to ageing or
corrosion result in existing concrete
structures such as bridges, jetties, buildings
and steel pipelines to be strengthened.
Reliance introduced RELinforce™, a range of
Carbon and Glass Fiber reinforced polymer
systems for structural strengthening and
protection of the structural members
and pipes. Setting up the solution
involves using guidelines that confirm to
international standards and does not just
repair degraded structures, it makes them
stronger than original and resistant against
harmful effects of seismic forces and
corrosive mediums.
Establishment of our value chain
in domestic markets
Focusing on three major focus areas, i.e.
Industrial, Infrastructure and Building, in its
maiden year, RELinforce™ served domestic
customers and internal Reliance sites by
setting up solutions that included design,
materials and installation (with partner). To
address the specific need of each individual
application, RELinforce™ is backed by
Application Development Centre (ADC) and
Material Engineering Centre (MEC) aligned
towards setting up a sustainable solution
for our customers.
A Step towards Greener India
Sustainability, longevity and minimum
disruption in operations of assets form the
basis on which our solutions are developed,
92
making it one of the most preferred type
of application for any rehabilitation project.
With ample scope for new development,
this advanced material will enable lower
maintenance cost with increased durability
and functionality of the old structure, saving
India’s available and valuable resources
for building new infrastructure and assets
in virgin areas.
RELX™ COMPOSITES
Reliance Composite Solutions (RCS)
under the trade mark RELX™,
commissioned Unsaturated Polyester resin
plant during the year. Besides meeting
in-house requirements, the capacity will
be utilised to supply other composite
manufacturers in India.
Composite components supply for metro projects
REROUTING END OF LIFECYCLE —
PLASTIC WASTE TO ROAD
High quality of ReRoute roads
even after monsoons
Plastic products have become ubiquitous
in our lives. Due to their low cost,
ease of manufacturing, versatility and
imperviousness to moisture, they are used
in a wide range of applications such as in
construction, food packaging, healthcare,
automotive, electrical appliance, electronics
and space science.
However, the prevailing linear economy
model of “make-use-dispose” and improper
disposal of waste has resulted in low rate
of recycling for certain plastics, thereby
creating environmental pollution.
Solution
One viable application for such, “end
of life-cycle” plastic waste could be in
road construction.
Road constructed with post-consumer,
non-recyclable plastic waste ensures
enhanced durability, higher resistance to
deformation, increased resistance to water
induced damages and improved stability
and strength. It also facilitates possible
substitution of bitumen, thereby reducing its
cost of construction due to the price delta
between bitumen and waste plastic.
The plastic waste that is used is, “end of
life plastic”, i.e. plastic that has outlived its
use/reuse, which is difficult to recycle. The
plastic waste acts as a binder when heated
to a certain temperature, without emission
of toxic gases.
Creating Value from Waste
As part of sustainability and circularity initiatives, RIL formally launched the waste plastic to roads initiative titled ReRoute™.
The Company has piloted around 40 km of road in Nagothane, Maharashtra and 1 km inside RIL-RCP campus at Ghansoli,
Navi Mumbai, which demonstrated that end-of-life plastics can be utilised in a sustainable manner to enhance quality of our
roads and also be beneficial to the environment.
RIL has demonstrated the savings of bitumen and inspected the quality of road after a couple of seasons.
It is noteworthy to mention that the quality of road was phenomenal even after a record monsoon rainfall of
3,500 mm. The road has been performing well since then without formation of any potholes.
Collection of waste:
household and plant
offices
Dry waste segregated
further into plastic,
wood, glass, paper etc.
Coating an aggregate
and mixing with
Bitumen
Segregation into
dry waste and
wet waste
Shredding of plastic
films (SLP-PE/PP
and MLP)
Dry waste segregated
further into plastic,
wood, glass, paper, etc.
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BUSINESS PERFORMANCE: PetrochemicalsReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya JoshACTIONPROCESSOUTCOME Initiatives by the Indian
Government
National Highways Authority of India has
mandated use of waste plastics in road
construction. The Indian Roads Congress
has also amended the existing code for
waste plastics by taking valuable inputs
from RIL. Several other road construction
authorities spanning various states have
embarked on a mission to utilise waste
plastics in constructing several roads in
their respective states.
Path Forward
ReRoute shall create an effective
ecosystem for usage of non-recyclable,
“end of life” plastic waste and in road
construction by advocating better quality
of roads and promoting the same to major
stakeholders such as governments and
private institutions, and road contractors.
Given that there is a huge business
potential in road construction, this is
another such environment friendly initiative
that could help the industry convert an
adversity into an opportunity and generate
wealth from waste.
INNOVATING TO
CATER TO CUSTOMERS
AND NATIONS NEEDS
Using its superior distribution in India and
broad product slate, Reliance catered
to essential domestic sectors (Milk &
Food Packaging) facilitating Agricultural
demand for Irrigation and Health &
Hygiene ( PPE, Mask). Within a very short
span of time, Reliance ramped up special
melt blown Polypropylene production to
support domestic N95 mask production
and eliminated import dependency for a
key raw material.
Reliance is working tirelessly to cater to
the nation’s requirement of PPE Suits, N95
Masks and Swabs:
1. Alok Industries manufactured over
1,00,000 SITRA approved suits per day.
2. Fabric suitable for medical applications
is being supplied from Recron
Malaysia to make surgical gowns for
DRDO requirements
94
3. Set up a KN95 mask manufacturing
facility at Alok Industries in record time
4. Reliance and Johnson & Johnson: RIL
PSF sliver forms the raw material along
with swab stem rod. One Crore swabs
under production
PSF Sliver to be attached to Swab Stem-Rod
PPE Suit
LEADING THE
ADOPTION OF
CIRCULAR ECONOMY
IN INDIA
Plastics through their resource saving
potential and intrinsic recyclability make
a massive contribution to environmental
sustainability. Socially, plastics play a
vital part by permitting hygienic food and
resources for all sections of society.
Plastics have also been at the forefront
of relief efforts during natural disasters
and catastrophic events. In response to
the ongoing COVID-19 outbreak, plastic
industry has supplied various essential
items such as food and water through
fast, clean and hygienic plastic packaging.
Plastic supports almost all the Personal
Protective Equipment (PPE) such as
gloves, masks, aprons, and packaging
for hand sanitizers and other personal
hygiene products. Plastics are not only
playing a crucial role in preventing the
spread, but also in medical equipment
such as plastic swabs and vials used for
testing kits, ventilators, packaging of
pharmaceutical drugs made from plastics,
which ensure quick and effective treatment
of the patients.
RIL’s commitment to environmental
sustainability is demonstrated through
collaboration efforts, education initiatives,
and projects to ensure smooth transition
towards a circular economy.
1. RIL is reviewing its portfolio, which
includes various projects on collection,
sorting and recycling of plastics,
including end-of-life solutions such as
plastic to fuel and plastic to road.
2. The Company actively engages and
collaborates with global associations,
governments, businesses and
consumers to drive effective solutions.
3. RIL’s education and communication
initiatives continues to promote a
sustainability and circular economy
mindset by engaging with internal and
external stakeholders.
RELIANCE INITIATIVES
Some additional initiatives
undertaken at Reliance
• During FY 2019-20, RIL continued
to recycle about 2 billion waste PET
bottles, converting it to products such as
Recron® GreenGold.
• RIL is in the process of increasing
its recycling efforts by doubling the
capacity to recycling about 5 billion PET
bottles in the near future.
• During FY 2019-20, Reliance Foundation
carried out a massive PET bottle
collection drive ‘Recycle4Life’ that
collected a record 78 metric tonnes of
plastic waste across various Reliance
sites all over India.
• RIL continues to collaborate with Afroz
Shah in initiatives to clean-up beach and
river at Versova Beach and Mithi River.
• Reliance is the only Indian company
to participate in the global effort
to eliminate plastic waste in the
environment at Alliance to End
Plastic Waste (AEPW). The Alliance is
currently implementing three projects
in India focused on eliminating littered
plastic waste: Renew Ganga, The City
Partnerships project at Haridwar and
Rishikesh, and Grameen Creative Lab -
Zero Plastic Waste Cities at Puducherry.
• Reliance initiatives for Circularity in
plastics advance UN SDGs by reducing
dependency on new resources (by
engaging in collection, sorting and
recycling of plastics), and reducing
plastic and other waste bound
for land and marine environment
(through communication and
awareness initiatives).
Employee volunteers at the Mithi River clean up
Volunteers with Bobcat at Versova
Converted Waste to Value
Closing the loop on plastics and
repurposing waste plastics to create
innovative products (textile, roads,
furniture)
BUILDING DIGITAL
PLATFORMS FOR
ENRICHING CUSTOMER
EXPERIENCE
Digitalising our
SUPPLY CHAIN via:
1. Vehicle Tracking Solution (VTS) –
Mobile, SIM based tracking for all Sites-
Live track and trace being monitored.
2. No Touch Sales Order clearance,
Proof of Delivery (POD) digitisation
and reverse billing process. Electronic
Data Interchange (EDI) integration
with shipping lines for invoicing and
settlement processing.
3. R-Delight – 3PL Workforce Service
Settlement Management tool based
on Micro Services Architecture. Cloud
based systems for digital settlement
of commercial contracts, eBL and road
freight management.
Other Key Platform Initiatives
to build a digital ecosystem
for business and performance
management include:
1. Petrochemicals Command Center to
provide a unified view for CXO to access
all performance monitoring dashboards
along with User Access Management
2. Automation of Shipping Instruction/
Bill of Lading filing and AI enabled
Scrutiny to ensure the accuracy,
reduce the penalty costs for legally
binding export documentation thereby
improving productivity
3. AI enabled Letter of Credit (LC) Scrutiny
to improve efficiency, cycle time and
minimise working capital.
4. Vendor Managed Inventory (VMI)
application provides higher customer
satisfaction by assuring supply, reduced
working capital requirement and thereby
ensuring customer loyalty.
5. Planning Optimisation and
Manufacturing Execution Systems (MES)
at Recron Malaysia plants.
6. R-Elan Customer Management with
Fabric Library through Portal. Customer
onboarding, Fabric testing and
certification, Hangtag ordering and
fulfillment, Comprehensive Inventory
Management of Fabric, Hangers &
Swatches can all be accomplished
through this portal.
7. Establishing Data Lake for Petchem
command center
OUTLOOK
Initial impacts of COVID-19 on the GDP
growth in many major economies is likely
to be significant in the short term, leading
to demand destruction. With gradual
opening up of economies and increasing
manufacturing activities, demand for most
petrochemical products is expected to
recover by the second half of 2020. In
the near term, demand for polymers and
polyester products is likely to be supported
by various applications in the healthcare,
hygiene & safety and packaging segments.
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BUSINESS PERFORMANCE: PetrochemicalsReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh Management Discussion and Analysis (contd)
BUSINESS PERFORMANCE
Oil and Gas Exploration
& Production
VISION
MISSION
To be a premier contributor to
the India’s Gas Based Economy
with production >25% of current
domestic production.
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.
Oil and Gas
Assets
The Company’s oil and gas assets include KG D6 and two Coal Bed Methane (CBM) blocks.
RIL also has two joint ventures in North American shale plays with Ensign Natural Resources
and Chevron.
The Company also holds exploration acreages in NEC25 and KG UDW1 blocks.
38.8 BCFe
RIL’s share of
domestic production
RELIANCE E&P PORTFOLIO ACROSS THE ASSET LIFECYCLE
Exploration &
Appraisal
Project
Definition
Field
Development
Field
Management
and
Operations
KG UDW1
KG D6
• R-Cluster
• Sat-Cluster
• MJ
CBM Fields
US Shale Assets
Field
Abandonment
KG D6
• D1D3
• MA
Tapti Fields
96
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Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh P.M.S.
Prasad
Naresh
Narang
Sanjay B.
Roy
B. Ganguly
Ravikumar
Prekki
The key focus for FY 2019-20 was to monetise the ~3 TCFE
discovered resources in our east coast, KG D6 deepwater
asset, while sustaining production and maximising
recovery from the existing fields.
Concurrent development of three deep/ultra-deepwater
projects, in block KG D6 namely, R-Cluster, Satellite
Cluster and MJ fields, is being pursued by leveraging
the existing world class hub infrastructure. All contracts
have been awarded and projects are in different stages
of maturity with commissioning of the first of the three
projects i.e. R Cluster, expected this year.
Combined production from these three fields is expected
to be 1 BCFe/day (30 MMSCMD) by FY 2024. This would
catapult the RIL-BP JV to becoming one of the premier
contributors to the Indian Gas economy.
Up until March 2020, all projects have been ahead
of schedule. However, outbreak of the COVID-19
pandemic and consequent lockdowns have presented
unprecedented constraints in the execution of these
deepwater projects. While safety of people and assets
remains our top priority, we are making all efforts to
progress these projects and expect to commission the
R-Cluster Field in mid FY 2021.
There has been a steady production of about ~1 MMSCMD
from the Coal Bed Methane (CBM) fields in Sohagpur,
making RIL the largest producer of CBM gas in the
country. Further activities are underway to augment
production.
Reliance with a significant gas resource base is poised to
be a premier contributor to India’s gas-based economy.
Within three years, we are aiming to achieve peak
production of gas that will be equivalent to nearly 30%
of India’s indigenous production. This will translate into
substantial multiplier effects for the economy and lead to
energy import savings to the tune of nearly US$25 billion
over 10-12 years.
VALUE CREATION FOR THE STAKEHOLDERS
Shareholder Value
Deepwater/unconventional/
downstream integration with other
businesses
Employee Value
Institutionalise E&P learning
and development programmes
Societal Value
Strive for positive social impact from
RIL’s business activities
Value
Creation
Customer Value
Recognised ‘Partner of Choice’ for
international E&P players
STRATEGIC ADVANTAGES AND COMPETITIVE STRENGTHS
RIL as an integrated E&P Operator is India’s leading Deepwater Operator. Globally, a distinguished leading operator in the execution
of complex deepwater projects and operations. Portfolio also encompasses unconventional assets which includes CBM and
US Shale assets.
Quality asset base and world class capabilities
Deepwater
• First and only greenfield
deepwater project in India
• Development of 3 TCFe
resources in the KG D6
Block in progress
Coal Bed Methane
•
India’s largest surface
footprint unconventional
hydrocarbon project and
highest CBM producer
India’s premier gas producer
Will be a major contributor to India’s quest for clean energy as a
leading producer of gas
Control-cum-Riser Platform
98
•
Partnerships
•
JV with BP in India synergising its strengths in project execution
and operations with BP’s vast E&P experience
JV with Chevron and Ensign in US shale assets
Safety
Over 12 years of safe operation, with safety record among the best
in the world since the commencement of production in deepwater
block KG D6 and CBM
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BUSINESS PERFORMANCE: Oil and Gas Exploration & ProductionReliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh MARKET ENVIRONMENT
Nations worldwide are in pursuit of cleaner
and greener energy to reduce the carbon
footprint. Gas is the ideal transition fuel in
the energy mix for the foreseeable future.
In India, gas consumption within the energy
mix is expected to triple by year 2030 from
current levels of 5% to 15% with strong
demand from Fertilizer, Power, Refining
and other industrial sectors and the rapidly
emerging City Gas Distribution sector.
Oil prices softened in 2019 due to oversupply.
Brent and West Texas Intermediate (WTI)
averaged US$64/bbl and US$57/bbl
respectively in 2019, US$7/bbl lower than
2018 averages. Throughout the year, crude
oil prices were under pressure due to
increase in US production which muted the
impact on prices due to, drone attacks on oil
production facilities in Saudi Arabia, OPEC+
production cuts, and US sanctions on Iran
and Venezuela. However, with COVID-19
destroying demand, coupled with the delay
in OPEC+ in agreeing on production cuts, the
oil market is in turmoil with prices falling over
70% since October 2019.
Natural gas production in the US set a
record in 2019, averaging 92.1 BCF/d
leading to reduced gas prices. US Henry
Hub gas price averaged at US$2.6/MMBTU
compared to US$3.0/MMBTU in 2018.
Given the global demand for gas is
projected to grow by 4-5% y-o-y and in
absence of investments in LNG projects in
the next five years, gas prices are expected
to rebound faster and continue its uptrend
for most of the decade.
COVID-19 RESPONSE
OBJECTIVE
IMPACT
Zero cases at all
Safety
project locations/
operating sites
Project
Execution and
Operations
Safe, Reliable and
Timely delivery of
Projects despite
disruptions to
normal functioning
Mitigate impact on
revenue and cash
flows
Value:
Demand
Destruction
and Price
Collapse
RESPONSE
• Safety of employees, contractor staff at all sites
accorded top priority.
• All measures pursuant to government and company
•
advisories implemented
“Work from Home” leveraging digital Infrastructure
for business continuity.
• Supporting local communities around sites with
medical and essentials supplies
• Contingency plans being implemented to mitigate
impact on vendor service and equipment deliveries
due to COVID-19 global lockdown/ restrictions
• Close co-ordination with Government authorities for
mobilisation of material and resources for petroleum
operations that are essential services
Despite Force Majeure notices from contractors,
working closely with them to ensure continuity
• Reduction in expenditure while delivering on
•
business priorities
o Cost and cash outflow reduction and deferment
o Non-essential activities being deferred
o Reduction of operating expenditure
OIL AND GAS PORTFOLIO
Block
Country Partner
CONVENTIONAL
DOMESTIC
KG-DWN-98/3
India
BP – 33.33%
(See Note 1)
RIL
Stake
JV Acreage
(In Acres)
Status
66.67%
2,90,230 D1D3 Field ceased for
production from 3rd Feb
2020. Field Development
Plan (FDP) approved for
• R-Cluster,
• Satellite Cluster and
• MJ, Field Development
activities underway.
2,05,520 FDP Submitted. Under
review with GoI
NEC-OSN-97/2
India
BP – 33.33%
66.67%
KG-UDWHP-2018/1
India
BP – 40%
60%
374,093 Revenue Sharing
Contract (RSC) signed on
July 16, 2019.
UNCONVENTIONAL
DOMESTIC
CBM
SP (East)-
CBM- 2001/1
SP (West)-
CBM- 2001/1
INTERNATIONAL
Shale
Ensign JV
India
India
100%
1,22,317 Development ongoing
100%
1,23,552 Producing
45%
1,27,907 Producing
USA
Ensign – 46.4%
Newpek – 8.6%
USA Chevron – 60%
Chevron JV
Notes
1. Assignment of 10% of NIKO PI to RIL (66.67%) and BP (33.33%) was approved by Government of India, and
2,26,358 Producing
40%
PSC amendment is complete.
2. Panna Mukta PSC expired on 21st December 2019 and Field was handed over to GoI nominee ONGC.
3. Mid and South Tapti field PSC also expired on 21st December 2019 and decommissioning activity for
facilities underway.
4. GS-OSN-2000/1 was relinquished during the year.
5. Ensign took over from Pioneer as operator
Sub-sea structures
100
FINANCIAL AND OPERATIONAL PERFORMANCE
Revenues
EBITDA
FY 2019-20
(` in crore)
3,211
353
FY 2019-20
(US$ in million)
424.4
46.7
FY 2018-19
(` in crore)
5,005
1,642
%
Change
(35.8%)
(78.5%)
FY 2019-20 revenues for the Oil and Gas segment decreased by 35.8% y-o-y to `3,211
crore. Volumes from domestic upstream fields and US shale were lower because of natural
decline and slowdown in development activity. Segment EBITDA was at `353 crore as
against `1,642 crore in the previous year. For the year, domestic production (RIL share) was
at 38.8 BCFe, down 34.1% y-o-y and in US Shale (RIL share), business was 80.4 BCFe, down
14.9% y-o-y basis.
Unit of measurement
OPERATIONAL PERFORMANCE
Domestic
JV production
KG D6
Oil
Gas
Condensate
Panna- Mukta
Oil
Gas
CBM
Gas
MMBBL
BCF
MMBBL
MMBBL
BCF
BCF
FY 2019-20
FY 2018-19
—
17.5
—
2.6
34.2
12.2
0.26
36.4
0.03
4.1
51.1
12.6
Major Updates/Highlights
RESPONSE
IMPACT
RIL along with BP, successfully bid for ultra-deepwater Block KG-
Awarded
UDWHP-2018/1 under OALP-II. Acreage is contiguous to KG D6 block. RIL is
Ultra-deepwater
Block KG-
the operator with 60% participating interest (PI), while BP holds 40% PI.
UDWHP-2018/1
Deepwater
Development –
New Records
E-Auction for Gas
KG D6 – Assignment
of Niko’s PI
KG D6 – D1D3 Gas
Field Cessation
KG D6 – D26
(MA) Field
Abandonment
Panna-Mukta-Tapti
PSC Expiry
The RSC was signed in July 2019 and Petroleum Exploration License (PEL)
issued in August 2019.
Installation of gas gathering manifold (R-DWPLEM) in 1,922 m water depth,
which is the deepest subsea installation in India.
R-Cluster Gas evacuation pipeline, the deepest in India, has been installed
in ~2000 m water depth and tied to existing Control and Riser Platform.
Successfully conducted a first-of-its-kind e-auction for the sale of R-Cluster gas.
Assignment of NIKO’s PI to RIL & BP was approved by GOI.
RIL and BP currently hold 66.67% & 33.33% PI respectively in the Block.
D1D3 field ceased production in February 2020. Wells were closed in a
safe manner.
India’s first abandonment of deep-water facilities undertaken. The
MA Field Decommissioning Plan has been approved by OISD and
Management Committee. All the MA production facilities (pipelines, Buoy
and Umbilicals) have been safely abandoned in line with the GOI’s site
restoration guidelines. This is India’s first abandonment of deep-water
facilities.
The Production Sharing Contract (PSC) for Panna-Mukta Block expired on
December 21, 2019. Assets were handed over to the Government nominee
ONGC.
Over the 25-year PSC life, the fields produced 228 MMBBL oil and 2.6 TCF
Gas generating US$ 25 billion revenues and contributed US$ 4.5 billion to
the Government exchequer.
Decommissioning for Tapti Part B Facilities are underway and are
scheduled to be completed by end of 2021.
KG D6
D1D3 field was India’s first deepwater
gas field to be put on production in April
2009. While there were initial setbacks
due to geological surprises, the RIL-BP
joint venture through its efforts and further
investments extended the field life upto
February 2020, maximising recovery
from the field.
The KG D6 Block has so far produced an
overall 3 TCFe of Gas, Oil and Condensate.
The block has established several global
benchmarks in terms of operational
performance, including 99.9 % uptime and
100% incident-free operations. Majority
of the production facilities established
for development of the gas fields will
be utilised towards development of the
three new fields.
KG D6 Deepwater Development Update
The development of three deepwater fields,
R-Cluster, Satellite Cluster and MJ fields is
on track for commencement of production
in FY 2020-21. The R-Cluster fields which
will come onstream first, will have a peak
production of 12.9 MMSCMD, about 10%
of India’s current gas production. The
combined production from the three fields
will ramp up to 30 MMSCMD in 2023 when
all the fields are onstream.
R-Cluster
Drilling and completion of six development
wells has been successfully completed.
All major sub-sea installation works such as
installation of 18” subsea pipeline tie-back
to Control and Riser Platform (CRP), subsea
structures, in-field pipelines including
PLETs, subsea Umbilicals have been
completed along with testing. Currently pre-
commissioning work is ongoing.
Existing facilities, including CRP and
Onshore Terminal (OT) are being made
ready to receive gas from the field.
The field is on track for start of
production this year.
Sale of gas, through an open
and transparent bidding process,
is being pursued.
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Fabrication, assembly and testing of
subsea production system is on track.
16” Satellite gas evacuation pipeline and
suction piles for subsea structures have
been installed during the first offshore
installation campaign in Q1 2020. The
second offshore installation campaign is
scheduled to commence in Q3 FY 2021.
Drilling and Lower Completion activities
of five development wells have also
commenced during the year and will get
completed this year.
MJ
All contracts have been awarded.
Engineering, procurement and
manufacturing activities for FPSO,
Subsea production system, Risers and
Umbilicals are currently underway. Drilling
campaign commenced in March 2020
with mobilisation of second drilling rig,
‘West Polaris’.
CBM (Sohagpur East & Sohagpur West)
RIL is currently producing Coal Bed
Methane (CBM) from its block SP (West)–
CBM–2001/1. Nearly 230 wells are on
production with production averaging
~1 MMSCMD in the year.
To sustain production plateau, development
activities of phase II of block SP (West)–
CBM–2001/1 are being undertaken.
Phase II included drilling and completion
of 67 wells along with an additional Gas
Gathering Station (GGS) and associated
water gathering stations for collection
and processing of CBM Gas and water
respectively.
Reliance Gas Pipeline Limited, a subsidiary
of RIL, has commissioned the 302 km
Shahdol-Phulpur Pipeline from Shahdol
(MP) to Phulpur (UP). This pipeline connects
the CBM Gas fields with the National
Gas Grid providing access to consumers
across the country.
US Shale
In 2019, Reliance focused on preserving
long-term value through continued
development with strict capital discipline
and use of latest technology on
completion design.
102
Chevron focused on their “factory model”
on development optimisation and brought
two new well pads on stream by year-end
with an optimised completion design. Also,
the first well in the Utica formation was
successfully put into production.
Ensign Natural Resources (ENR) took over
operatorship from Pioneer in Q2 CY 2019
and commenced development activity with
one rig. 21 new wells were put on stream,
9 of which were for completions only, as
wells had been drilled by Pioneer already.
Overall results demonstrated lower costs
(~20%), improved cycle times (down by
~20%) and improved performance (initial
production ~15% higher) when compared to
2017 performance.
Reliance’s aggregate capital investments
across JVs increased y-o-y and was
US$ 263 million during CY 2019,
reflecting development momentum in
Chevron during early 2019 and restart of
activity in Ensign JV.
For 2020, major focus areas include
value maximisation, retaining optionality,
improving execution efficiency and
cost structure.
Operational Performance
JV
production
Unit of
measurement
CY
2019
CY
2018
Gas
BCFe
65.9
73.8
Condensate MMBBL
2.4
3.5
In 2019, the JVs together drilled 62 wells
and put 51 wells on production.
Gross JV production was ~0.53 BCFe/d
for the 2 JVs, down 14% y-o-y. Reliance’s
share of production and sales were at 80.4
BCFe and 70.5 BCFe, respectively in CY
2019, compared to 93.5 BCFe and 84.0
BCFe in CY 2018.
CHEVRON JV
JV operated areas had significant increase
in development activity during early 2019
which was followed by slowdown beginning
Q4 2019, considering low gas prices. There
was 1 rig operating in JV operated area.
Gross JV production declined by 4%
to 127 BCFe from 131 BCFe in CY 2018,
reflecting slowdown activity. However
operational efficiency had improved and
well performance remained strong. Reliance
share of net Sales volume stood at 43.7
BCFe vis-à-vis 45.2 BCFe in CY 2018.
ENSIGN JV
In 2019, Ensign was focused on bringing
the DUC (Drilled Uncompleted) wells
online followed by new drills in core CGPs.
Development activities commenced in July
2019, with 1 rig and 1 frac crew remaining
mobilised for the balance 2019. With zero
activity in H1 2019 and natural decline of the
existing wells, average Gross JV production
was down 29% at 66 BCFe vis-à-vis 93
BCFe in CY 2018 and Reliance share of net
sales volume was at 26.9 BCFe vis-à-vis
38.7 BCFe in CY 2018. The share of liquids
improved from 66.5% to 67.4% in CY 2019.
EXPLORATON OUTLOOK
RIL’s exploration strategy is focused on
catchment areas in proximity to existing KG
D6 block to leverage existing infrastructure.
RIL won the block KG UDW-1 in the ultra-
deep waters of KG basin in the OALP round
II. The mapped play is in geologically
challenging domain and will require state-
of-the-art technology in acquisition and
processing to preserve amplitude fidelity for
ultimate drilling decisions.
RIL is also looking for similar opportunities
in the Mahanadi basin where it has
discovered resources in the block NEC-
25 from NELP-I.
TECHNOLOGY AND
INNOVATIONS
RIL’s endeavour towards creating E&P
digital platforms aims to free up the locked
down data structures, workflows and
functionalities inside the native architecture
of OEM solutions. The objective is to make
them more interoperable through “Open
Standardised Interfaces”, so that there
is a good degree of freedom to innovate
solutions to the business problems. This
would achieve the “layered modular
software architecture” which enables the delivery of products and services to the consumers of the E&P business, in a truly platform
ways of working.
SOLUTIONS AS PART OF THE E&P DIGITAL PLATFORM
Drilling Advisory
Digital Oil Field
Integrates real-time drilling data with planning and engineering data to provide insights into drilling
operations
Entire field connected through fibre optics for replicating the behaviour of the producing field as an on-line
management system throughout the entire lifecycle of any asset.
Digital Twin
Digital replica of assets from engineering, construction and operations perspective
Autonomous Field
Provides reservoir and production performance insights in a unified, easily consumable and intuitive
visualisation
Integrated Operation
Centre
Provides comprehensive view of entire operations with up-to-date analysis from Well head production to
plant utilisation
All these solutions deliver the following value propositions:
• Reduce manual efforts in collecting, collating and processing the information.
•
Integrate workflows/ information-flows and bring in cross-domain collaborations among various technical and support functions,
resulting in ease and new ways of doing the work.
• Enhance collaboration as teams work with an “outcome-based approach”.
I-UDH Installation
CRP modifications underway
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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 PSC
for the KG D6 Block. Parties have filed their
respective pleadings before the Arbitral
Tribunal as part of arbitration proceedings.
PUBLIC INTEREST LITIGATIONS
(PILS)
Three PILs were filed before the Supreme
Court in 2013 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
Production Sharing Contracts (‘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 (‘2016
FPA’), and separately, two dissenting
opinions in the matter on October 12, 2016.
Claimants challenged certain parts of the
2016 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 and
Claimants filed an appeal before the
English Commercial Court against this
2018 FPA. The English Commercial Court
has rejected Government’s challenges to
2018 FPA and upheld Claimants’ challenge
and has remitted the underlying issue in
challenge back to the Arbitration Tribunal
for determination. Claimants have filed
an application before the Arbitral Tribunal
seeking increase in the PSC Cost Recovery
Limit and the same is sub judice. 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 2016 FPA ignoring the judgements
of English High Court and the subsequent
Tribunal Awards. The Claimants content
that Government’s Execution Petition is
not maintainable. Government’s Execution
Petition is currently sub judice.
DISPUTE WITH NTPC
NTPC filed suit in 2006 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 contesting its unfair claim. 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 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 Chief Minister of Delhi had
ordered the ACB to register the FIR and
investigate the matter.
The Company has filed a Writ Petition
before the Hon’ble Delhi High Court
questioning the jurisdiction of the ACB in
registering the case against the Company.
The Company has contended that the ACB
lacks jurisdiction to file the case. The matter
is currently pending before the Hon’ble
Delhi High Court.
CSR ACTIVITIES
Health
The health outreach programs at
CBM are implemented through
Mobile Medical Unit (MMU) services,
targeted multispecialty health camps,
model Aanganwadi programs,
awareness drives and rejuvenating
health infrastructure with support
from District Health Administration,
to tackle anaemia screening, eye
ailments, dental problems, gynae
issues, sanitation, cleanliness,
menstrual health and preventive care.
Special occasions like Girl Child week
was observed, felicitating mothers
of new born girl child and planting
saplings in their names.
More than 1 lakh consultations
were provided, and over 3,000
individuals have benefitted through
specialised health camps.
Enhanced health infrastructure
and awareness
Food and nutritional
security
Education
Farmers are supported for practicing
resource optimisation, enriching
productivity, technology, timely support
of quality farm inputs, promotion of
cash crops, and work with government
agencies to leverage their schemes for
enhanced farmers’ income.
1,280 acres supported with System of
Rice Intensification (SRI), more than 200
acres supported for vegetable cultivation
as cash crops and 50 acres converted to
orchards as models of agro-horticulture
and multi-layered cropping system.
Enhanced yield and farm income
21 digital classrooms installed in
government schools with mini
science centres in selected schools to
promote science and math. Ensured
safe and convenient journey of
over 400 girl students to and from
their schools and colleges through
designated buses. 5 coaching centres
being run for students preparing for
competitive exams.
More than 3,000 students have access
to digital education, over 1,000 students
benefited from science and math
centres, over 30 students have been
successful in getting admissions to
prestigious schools, more than 4,500
students have been supported with
educational materials.
Reduced dropout rate and
absenteeism
Water and sanitation
Skilling and livelihood
Over 50 water bodies and over 30 low cost water harvesting
bodies, Bori bandhan, collectively developed with nearby
communities are built to harvest rain water and ensure ground
water recharge, RO water filter and iron removal plant to
ensure quality drinking water to households. 8 solar toilets are
installed in schools.
Over 2 lakh m3 of water harvesting capacity developed and over
15 villages have been ensured improved access and availability of
drinking and irrigation water.
Accessible and affordable water availability, clean and
hygienic facilities
In partnership with various skilling agencies, youth and women
were skilled in bike repairing, JCB operations, stitching,
handicrafts making and capacity building in alternative off farm
livelihoods such as poultry, goatry and pisciculture.
More than 3,000 households supported through continuous
inputs, training and capacity building.
Enhanced income for households and employment
opportunities
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Alok
Agarwal
Srikanth
Venkatachari
Soumyo
Dutta
Anshuman
Thakur
Managing Liquidity and Capital resources for
Reliance and all its group companies continue to
remain a key focus area within Treasury. Reliance
continued to tap new liquidity pools to diversify
its sources of debt financing. Treasury retained
its focus on providing liquidity to the businesses
at the optimal risk adjusted cost by accessing
financing from different markets and using
different instruments and currencies. There were
multiple shocks in the financial markets during
the year emanating from sharp moves in crude oil
price, changing sentiment on account of US-China
trade war, credit events in the domestic financial
markets in India and the COVID-19 crisis. The
company was successfully able to navigate all such
dislocations in the market, continued to manage
its financial market risks prudently and deliver a
consistent return on its investment portfolio by
staying invested in low risk, liquid instruments.
RIL, in partnership with banks continued to
innovate and deploy new technologies in banking
and payment operations. Reliance continues to
enjoy a strong credit rating and continues to be
rated two notches above sovereign by S&P and is
one notch above sovereign by Moody’s.
FINANCING STRATEGY
Reliance Treasury is focused on securing
liquidity and capital for all its businesses.
It makes sure that the capital is made
available at the optimum risk adjusted
cost and is made available at the time
when businesses require it. It also ensures
maintaining a prudent mix of funding
sources across instrument classes,
financing products, geographical markets
and investor classes. Reliance Treasury
continuously assesses markets in order to
identify and spot the right financing and
investment opportunities.
Reliance enjoys a strong reputation of being
a trendsetter in financing, both in Asian
as well as global financial markets. It has
many ‘first-in-market’ financing solutions
to its credit. It has, over the years, built and
nurtured strong relationships with more
than 100 banks and financial institutions
as well as 14 Export Credit Agencies
(ECAs) globally – the highest number for
any corporate entity in the world. These
strong relationships, coupled with the
strength of its balance sheet, the strength
of its business cash flows, exceptional
credit profile and high-quality credit rating
ensure that Reliance continues to have
access to financing at the most competitive
rates at all times and even during tight
liquidity conditions.
Whenever required, the company has
been able to refinance its debt by aligning
its maturity profile with the requirements
of the businesses, at an optimised cost.
During FY 2019-20, Reliance tied-up
financing for $5.9 billion, by raising some
new debt and by refinancing some of its
existing loans as part of its on-going liability
management exercise.
Reliance was awarded as Best Issuer
(Corporate) – South Asia by The Asset,
Asia’s leading financial publication for
issuers and investor.
NEW FINANCING
Some of the key new financings
raised by Reliance during FY 2019-20
are listed below:
(i) EUR 405 million Schuldschein – These
facilities were tied-up as a combination
of fixed and floating rate facilities and
a combined average tenor of over five
years. The deal was priced at the lower
end of the pricing range across all
tranches. A mix of banks and institutional
investors as well as smaller retail banks
participated in the transaction.
RIL is the first non-European domiciled
borrower and the first Asian corporate
to enter this traditionally German-centric
debt market utilising a broad marketing
strategy. This transaction was the largest
syndicated Schuldschein issuance by a
non-European company and the largest
in the Oil & Gas sector globally. The deal
received significant oversubscription of
order book at 2.7 times
This deal was awarded Schuldschein
of the year by Global Capital, a leading
financial publication for issuers
and investors.
(ii) US$200 million and JPY 5.30 billion
Korea Trade Insurance Corporation
(K-Sure) supported ECA financing
with door to door tenor of over ten
years. Reliance group is now the
largest exposure for K-Sure globally
(excl. sovereigns).
(iii) ECA financing comprising of EUR 341
million direct facility and USD$365
million facility guaranteed by
The Export-Import Bank of Korea with a
door to door tenor of ten years.
REFINANCING
As part of its liability management exercise,
during FY 2019-20, Reliance successfully
tied up long-term financing via US$1.1 billion
syndicated term loan facility. The facility
will be used to refinance the equivalent
debt maturing in FY 2020-21. Reliance will
lengthen the maturity of its long-term debt
portfolio through this refinancing exercise.
FINANCING IN SUBSIDIARIES
During FY 2019-20, Reliance Jio Infocomm
Limited (RJIL) successfully tied up US$600
million and JPY 15.90 billion Korea Trade
Insurance Corporation (K-Sure) supported
ECA financing with door to door tenor
of over ten years. This transaction was
guaranteed by RIL and was awarded ‘Best
ECA-backed Telecoms Finance Deals of the Year’ by Trade and Export Finance (TXF).
TRANSFER OF LIABILITIES
To align RJIL’s capital structure with that of global technology peers and to have significant
financial strength to address the Digital Services opportunity in India, a scheme of
arrangement was entered into by RJIL with certain classes of its creditors to transfer certain
identified liabilities to RIL.
In March 2020, pursuant to the approval of Hon. National Company Law Tribunal,
Ahmedabad Bench, the identified liabilities of RJIL have been transferred to RIL with effect
from the Appointed Date mentioned therein.
CAPITAL RESOURCES
During FY 2019-20, Reliance and its subsidiaries tied up facilities across various financing
products and maturities. The table below shows debt levels for the year ended March 2020
and March 2019 for Reliance on a consolidated basis.
Particulars
March 31, 2020
March 31, 2019
Cash and Marketable Securities
Gross Debt
Net Debt
1,75,259
3,36,294
1,61,035
1,36,743
2,87,505
1,50,762
(` in crore)
LIQUIDITY AND TREASURY MANAGEMENT
Reliance maintains a strong focus on liquidity to ensure that the group always has adequate
cover to face any potential short term market disruptions. Cash from operating activities
is strong. Investments in the form of cash and cash equivalents provides an additional
liquidity buffer.
Reliance’s liquidity management and investment plans are created within the context of its
annual financial and strategic planning processes and reviewed on an ongoing basis.
Reliance believes that the Group has sufficient working capital resources for running
all its businesses smoothly. We continuously monitor and optimise our working capital
requirements by leveraging diverse trade financing solutions covering receivable and
payment products and executing innovative structured trade products.
Our investment portfolio has been created to achieve twin objectives of optimal returns
and assurance of liquidity when needed. The investment portfolio is well diversified and is
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.
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SUSTAINABLE GROWTH AT RELIANCE
CREDIT RATING
Reliance’s financial discipline and prudence is reflected in the strong credit ratings ascribed
by rating agencies. The table below depicts the credit rating profile:
Instrument
Rating Agency
Rating Remarks
International Debt S&P
BBB+
Two notches above India’s sovereign Rating
International Debt Moody’s
Baa2
One notch above India’s sovereign Rating
Long-Term Debt
CRISIL
Long-Term Debt
CARE
Long-Term Debt
ICRA
AAA
AAA
AAA
Highest rating by CRISIL
Highest rating by CARE
Highest rating by ICRA
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.
CARE 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.
ICRA 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.
FINANCIAL SERVICES – NEW
BUSINESS SEGMENT
During FY 2019-20, based on an internal
reorganisation of its business segments
and increased focus during business
reviews carried out by the management, RIL
identified ‘Financial services’ as a separate
business segment.
The anchor ecosystem of Jio (387.5 million
customers), and Reliance Retail (11,784
stores) provides a strong distribution
channel for financial products. The strategy
of the Financial Services business centres
around creating tailor-made financial
products and offering them as extensions
of other products that are being offered
to customers in the anchor ecosystem
of Reliance’s consumer businesses. This
synergistic relationship will benefit both
the financial services and the anchor
ecosystem businesses.
FINANCIAL AND OPERATIONAL
PERFORMANCE
This financial services segment achieved a
turnover of `1,271 crore and an EBIT of `473
crore in FY 2019-20.
108
Reliance was one of the first companies in India
to integrate sustainability into its core business.
This has helped the Company pioneer change at
the technological, behavioural as well as the policy
level. 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
Strategic
Framework
Integrated
Approach
Risk and
Governance
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 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 by investment in
strategic opportunities.
Reliance’s strategic framework can be
divided into three pillars:
• Approach
• Value creation
• Enablers
B. THE INTEGRATED APPROACH
Reliance, by design, creates positive
value across its value chain for all of
its stakeholders, both in tangible and
intangible form. The Company has
respected 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
Intellectual Capital and Innovation
•
• Manufactured Capital and
Product Stewardship
• Financial Capital and Credit Rating
• Social and Relationship and Value
Creation Capital
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 triple
bottom line. Reliance’s growth ambitions
are fuelled by its efforts to constantly
upskill its employees and bring them
up to speed with the use of latest
technologies. This enables the Company
to adopt emerging technologies quickly
and bring in more efficiency, which also
leads to safer and environment-friendly
operations. 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 to generate sustainable
value. The Company recognises
that effective risk management and
robust governance structures are
fundamental to continue leading the
phygital revolution. The infrastructure
for risk and governance activities at
Reliance comprise 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 the necessary
resources, thereby being resilient
through volatile environments.
D. DIGITAL PLATFORM
The move to digital platforms enables
the Group to evolve the Reliance
Management System (RMS) and build
an agile and future-ready organisation.
This strategic digital platforms journey
reflects in its business performance.
Reliance has built the best access
to Indian consumers by creating the
physical-digital bridge. By capitalising on
the current platforms, Reliance has built
a world-class business today with a clear
vision for the future.
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Reliance’s Strategic Framework
APPROACH
DRIVING GROWTH, VALUE, INNOVATION
AND TRANSFORMATION IN SOCIETY
Reliance is moving at a 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.
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 design interventions,
which lead to an overall enhancement in the quality of
life of citizens.
110
KEY REFLECTIONS
Integrating backward — Started with textile, then integrated
hydrocarbon business; now a significant player in consumer-facing
businesses
Reliance Retail is the largest retailer by revenue in India
#1 ranked mobile telecom operator in the country by both
Adjusted Gross Revenue (AGR) and subscribers
World’s largest refinery complex at Jamnagar
KEY REFLECTIONS OF FY 2019-20
Shareholder Value
• #*Dividend recommended – ` 6.5 per equity share
• #Market capitalisation – ` 7,05,212 crore
• Reliance’s digital service arm Jio Platforms Limited valued at
` 4.6 lakh crore
• #30.4% market capitalisation CAGR, since IPO
• *Maintained high RONW (adj.) of 11.3%
Employee Value
• #Reliance’s millennial (under 30) strength grown to 51.6%
• Retail has female diversity of 24%
• Digitised learning – launch of Linkedin Learning and learnet
• R-University: Driving employee learning and training
• *Imparted 1.1+ crore man-hours of training
• Developed EmpXP to create digital ecosystem
Customer Value
• Retail has the largest registered customer base of
over 125 million
• 387.5 million Jio subscribers
• *Launched ‘Chemistry for Smiles’ and ‘Transforming Life
into Quality Life’
• Recognised ‘Partner of Choice’ for international players
Societal Value
• ` 1,15,461 crore contribution to the national exchequer
• Reliance Foundation transformed lives of 3.6 crore Indians
across 37,000+ villages and several urban locations
ENABLERS
Reliance’s group strategy is
founded on five enablers. These
include safe operations, digital
technology, capital productivity,
operational excellence and ethics.
Digital technologies and platforms
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 believes that the health and
safety of its workforce 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.
Reliance’s approach to maximise value
creation also hinges on its ability to
optimise resource and capital efficiency.
Whether it is customer facing internal,
Reliance drives a mindset 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.
KEY REFLECTIONS
Digital Technologies
• Omni-channel initiatives in Reliance Retail
• Future-ready 5G, 6G and beyond
Safety and Compliance
• resQ is India’s only ISO 9001 certified electronics
service brand
• Use of drones for safety
• E&P has a track record of over 12 years of
safe operations, with safety record among the
best in the world
Capital Productivity
• #*ROCE (adj.) for FY 2019-20 – 17.9%
• Substantial interest savings from successful refinancing
of long-term loans
Operational Efficiencies and Effectiveness
• Over 1 million Customer touchpoints and direct customer
service ops hubs across thecountry
• Every Indian house within 20 km of a Jio Point
• Anytime, anywhere uninterrupted high-speed
data access
• Largest single site refinery with site complexity index
of 21.1
• Industry leading throughput per petro retail outlet
• Leading global manufacturer of polymers with 6 state-of-
the-art manufacturing facilities
Ethics
• Ethics and Compliance Task Force oversees and
monitors implementation of ethical business practices
• Awareness through mandatory learning sessions on
“Creating a Respectful Workplace” for all employees
*Standalone
#Current year outcome
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Integrated to drive value
Inputs
NATURAL CAPITAL
PG 114
• Minimum reliance on freshwater, maximum
use of natural water resources and
recycling of water
• Leading technologies to minimise
waste across materials, energy and
natural resources
HUMAN CAPITAL
PG 122
• `668 crore of HSE expenditure
• Diversity and inclusion across businesses
including frontline-consumer facing units
• 29,000+ ideas on the Mission Kurukshetra
innovation platform
MANUFACTURED CAPITAL
PG 134
Process
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.
External
Environment
Strategy
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Performance
• `11,65,915 crore of asset value
• Crude processing capacity of 1.24 mbpd
• 78 crude grade processed at JMD
• Technological advancement to ensure asset health
Digital
Platforms
INTELLECTUAL CAPITAL
PG 140
• Partnering with technology platforms to create a
digital ecosystem
• `2,538 crore of R&D expenditure during the year
• Bio-innovations and Circularity
• 127 patent applications filed during the year
• 900+ researchers and scientists
FINANCIAL CAPITAL
PG 154
• `77,444 crore of capital expenditure
• `53,124 crore raised through Rights Issue
• Strategic investments in Jio Platforms from
marquee investors crosses `1 lakh crore
SOCIAL AND
RELATIONSHIP CAPITAL
PG 156
• With over 9,700 applications, 136 start-ups
supported through JioGenNext
• Goods and services worth `15,371 crore
sourced from indigenous suppliers
• `1,022 crore spent on CSR initiatives
112
Enterprise Risk
Management
OUR BUSINESSES
Retail
Digital
Services
Media and
Entertainment
PG 30
PG 46
PG 62
Refining and
Marketing
Petrochemicals
Exploration
and
Production
PG 72
PG 82
PG 96
VALUE CREATION
Reliance’s business model and outcomes are aligned with the International Integrated Reporting Council’s (IIRC)
Integrated Reporting Framework, the United Nations Sustainable Development Goals and 15 other frameworks.
Outputs
Outcomes
JMD site designed for zero
freshwater withdrawal
One of the largest recyclers of
PET bottles (~2 billion)
9.9+ crore M3 of rainwater
harvesting capacity created
since inception
Total water recycled
74.4 (MILLION M3)
2,450.1 (000’ GJ)
of energy saved
from conservation
initiatives
• Digital economy with advanced technologies and
reduced footprint
• Cleaner air, cleaner water, cleaner soil and preserving
flora and fauna, and the marine ecosystem
• Diligent use of scarce resources with minimal
environmental footprint and extracting more value
from bottom-of-the-barrel production
24% of Reliance Retail
employees are women
Inspired the culture of innovative
mind set and crowd-sourcing of
business relevant ideas
Focus on millennials#
51.6%
# Under the age of 30 years
Pan India 11,784
Retail stores across formats
Spectrum footprint
1,108 MHz
Petrochemical production
38.4 MMT
Real-time monitoring
of safe and reliable
operations with help of
AI/ML/Robotics
Refinery throughput
70.6 MMT
Partnership with Microsoft
for innovative cloud solutions
for Indian businesses
Patents granted
140
Conversion of waste
plastics to road,
development of
bio-plastics
Total Revenue
`6,59,205 CRORE
Maintained Debt-Equity
ratio at 0.74
US$100+ MILLION
funding raised by alumni of
JioGenNext during the year
37,000+
villages impacted through
Reliance Foundation
Profit After Tax^
`44,324 CRORE
Retained Strong Credit
Rating from Domestic and
International Agencies
^ Before exceptional items
Total Value Added
during the year
`2,27,365 CRORE
Enhancing ease of
living for Indians
• Healthier and safer working environment
• Future-ready human resources with Reliance
DNA and values
• Facilitating leadership programmes
• Reliance Retail has unprecedented reach covering
length and breadth of the country
• Jio is the world’s fastest growing mobile data network
• World-class infrastructure facilities
• Enabling and creating a digital ecosystem
• Driving innovation culture with next-gen technologies
• Transition from smart buyer to fast customiser
of technology
• Breakthrough R&D in Big Data and digitalisation
• Product stewardship
• Strong credit rating
• 30.4 % CAGR in market capitalisation
• Connecting the unconnected by providing a
digital platform
• Open and timely communication with suppliers
and contractors
• 3.6 crore of community outreach through
Reliance Foundation
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Management Discussion and Analysis (contd)
SUSTAINABLE GROWTH AT RELIANCE
The Integrated Approach:
Natural Capital and Climate Change
KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
FY 2019-20
FY 2018-19
FY 2019-20
FY 2018-19
Reliance aspires to be nature neutral and has taken a holistic and
climate conscious approach to development.
Reliance is integrating climate related aspects into its overall
decision-making process across different levels, including
risk management, governance, performance management
and the overall business strategy. The consumer businesses,
have utilised leading technologies thus minimising waste and
maximising resource efficiency. Digital Services has proactively
implemented energy efficiency measures such as the use of
Lithium Ion batteries, HVAC systems and renewable energy
sources across sites and through its indirect impacts, enabling
a low carbon future. Across consumption baskets, Retail has
deployed responsible waste management and reduction strategies.
Retail’s efforts in e-waste management have enabled it to receive
Extended Producer Responsibility (EPR) authorisation from CPCB.
Reliance supersite, Jamnagar is a beacon that exemplifies the
tenet of eco-innovation, and demonstrates how processes can
consume less water. It is also making big strides in contributing to
India’s clean energy transition and enabling a circular economy.
Utilising bottom-of-the-barrel crude to generate non-conventional
energy options is enabling conservation of natural resource
and minimising the emission intensity. Reliance state-of-the-
art supersite is designed to generate less waste and emissions.
Reliance is also India’s largest PET recycler, recycling two billion
bottle every year, and creating high-value products from waste
such as roads, apparel and more.
Through products that are eco-efficient, Reliance has helped its
consumers reap the benefits of its technological prowess.
UN’s Sustainable
Development Goals
Material Topics
• Energy Efficiency of Operations
• Carbon Abatement and Offsetting
• Managing Environmental Impacts
• Water management
• Waste management
• Renewable and alternative energy
• Ecosystems and Biodiversity
Other frameworks referenced
API/IPIECA, UNGC, WBCSD,
GHG Protocol, TCFD, Natural
Capital protocol, UNGP,
NVG-SEE, NGRBC, TPI
National Missions
• National Solar Mission
• National Policy on Bio Fuels
• National Environment Policy
• National Plan for Conservation of
Aquatic Ecosystem
Natural resources – water, air, land,
minerals and biodiversity
Refinery throughput 70.6 MMT
7.3+M3
Rainwater harvesting capacity created
since inception (crore)
9.9+M3
Cumulative saplings planted since
inception (crore)
2.1+
2.2+
Energy saved on account of
conservation initiatives (‘000 GJ)
2,650.7
2,450.1
73.1
Total water recycled (in Million M3)
74.4
Air emissions-TPM (in 000’ MT)
1.8
Air emissions-NOx (in 000’ MT)
29.4
Non Hazardous Waste (in 000’ MT)
606.6
798.6
34.4
2.3
Cleaner air, cleaner water,
cleaner soil, preserving
marine ecosystem, flora
and fauna
Recognised Task Force on
Climate-related Financial
Disclosures (TCFD)
Recommendations
Diligent use of scarce
resources with minimal
environmental impact and
extracting more value
from bottom of the barrel
production.
No major spill or catastrophe
VALUE CREATION
As a responsible organisation, Reliance believes in creating value for the society it operates in. Throughout the years Reliance has made
conscious efforts to improve its performance on energy and water footprint and created value for society.
Energy Saved on Account of conservation Initiatives (000’ GJ)
Total Water Recycled (in Million M3/annum)
114
115
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewNaye India Ka Naya Josh2010-112011-122012-132013-142014-152015-162016-172017-182018-192019-2065.762.960.569.463.373.174.42,650.72,450.14,307.13,019.44,333.43,932.83,004.068.71,437.765.760.72,227.82,431.35,6004,2002,8001,4000080604020• Hazira plant achieved zero wastage of Butadiene in Small Group Activity (SGA)• Planted 12 lakh saplings across all manufacturing divisions• Started procuring recyclable green polymer packaging bags• Saved 1.44 million GJ of energy through various energy efficiency improvement initiatives• Carried out Mangrove plantation on over 50 hectares of land• Planted 20 lakh+ saplings with an average survival rate of 80%• Conserved 1,63,500 tonnes+ of soil• 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*• RIL’s pet-coke Gasification project at Jamnagar is under stabilisation• 9.9+ crore M3 of rainwater harvesting capacity created, since inception
SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Natural Capital and Climate Change
RELIANCE’s GOALS FOR SUSTAINABLE DEVELOPMENT
Goals
Highlights of FY 2019-20
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.
• 7 RIL plants have set targets under Perform,
Achieve and Trade scheme
• 52kW roof top solar panels at Patalganga
• Company-wide forums like Mission Kurukshetra and
focused annual event like energy conservation week
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.
WASTE MANAGEMENT
Ensure efficient use of solid catalysts including
investment in development of bio-catalysts to replace
solid catalysts.
• Total GHG reduction of 351.4 ktCO2e due to energy
conservation efforts
• About 2 billion PET bottles recycled annually
• 2.2+ crore saplings have been planted across all RIL sites
• Hazardous waste is recycled as alternate fuels and
raw material (AFR) to cement industries
• Clean-ups in Mumbai with 8500 MT of solid waste
removed in 12 months
• Used plastic waste to resurface a 40km road
• Installation of anaerobic digester for disposal of degradable waste
WATER MANAGEMENT
Deploy world-class technologies across all sites to
reduce freshwater consumption per unit of production
by maximising wastewater recycle and minimising
external discharge.
• 74.4 million M3 of water recycled in FY 2019-20
• Desalination of water at Jamnagar
• Overall rainwater harvesting capacity was increased in 3 sites
MANAGING NATURAL
CAPITAL AT RELIANCE
GOVERNANCE OF NATURAL CAPITAL
MANAGEMENT AT RELIANCE
Manufacturing locations prepare
environmental and sustainability action plans,
as part of their Annual Operating Plan. The
progress of implementation of such plans
are regularly reviewed at site level and
by the ‘Environmental Compliance Review
Committees’, every quarter. These plans and
their status of implementation are further
reviewed and assessed by the group Safety
and Operation Risk (S&OR) team. The S&OR
team present the performance and initiatives
to the Board every quarter. Health, Safety
& Environment (HSE) Board Committee
monitors and ensures the highest level of
environmental, health and safety norms
within the company.
116
Health, Safety & Environment Board Committee
Safety & Operation (S&OR)
CoE - Environment
ECRC
(headed by site presidents)
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
CLEAN AIR
Aspect
Philosophy adopted
RIL stewardship
Impact created
• Going beyond compliance for
stack emissions by maximising
operational efficiency
• Emission reduction through
design improvements and
eco-friendly fuels
• Emissions reduction
and recovery
CLEAN WATER
• Minimum reliance on freshwater
• Desalination at
Jamnagar
• Reduction in water consumption
Increase in water recyclability
•
PREVENTING SOIL
CONTAMINATION
• Minimum waste disposal to landfill
• Zero-spill operations
• About 2 Billion PET bottles
•
Increase in waste
recyclability
PRESERVING
BIODIVERSITY
DILIGENT USE OF
SCARCE RESOURCES
•
In-situ preservation of ecosystems
recycled /annum
• Over 2.2 crore
saplings planted
• Optimisation of resource consumption
• Syngas as a fuel
• Greenbelt development
• Habitat restoration
•
Increase in operational
efficiency of refineries
DIGITISATION
• Advanced technology enabling
reduced footprint
• Digital ecosystem
replacing travel
• Reduced emissions at
consumer end
Reliance remains focused on its main
objectives of furthering statutory
compliances and improving the
organisation’s environmental performances
through sustainability initiatives. The
compliance systems and processes
continue to be strengthened with rigorous
internal and external audit processes and
review by Environmental Compliance
Review Committees. Reliance’s initiatives
have been recognised by various domestic
and international agencies. Reliance aligns
the organisational level environmental
performance with UN Sustainable
Development Goals and prepare
environmental sustainability plans to
achieve these objectives. The thrust areas
in the sustainability drive are reduction
of freshwater consumption, resource
conservation, GHG emission reduction and
increase in green cover.
During the year, these efforts
were rewarded when
• Hoshiarpur manufacturing division
achieved the distinction of being the
first polyester yarn manufacturing
site in India to receive the coveted
‘GreenCo Gold rating’.
• Dahej manufacturing division was
awarded the ‘International Green Apple
Environment Award, 2019’ by ‘The Green
Organization, UK’ for environmental best
practices/green initiatives implemented.
CLEAN AIR
ENERGY EFFICIENCY
At RIL, energy management encompasses
energy related technologies, systems,
tools, standards, best practices and
procedures and also the supporting
business processes and organisational
structures. Cost-optimal investment into
energy efficient technologies, coupled with
supporting organisational and governance
practices meets the challenge of energy
savings and reduced production costs while
maintaining product quality, safety and
desired production volumes. At Reliance,
the consideration towards cleaner air is built
into each stage of business operations viz;
(a) strategic decision making, (b) process
design and later (c) continuously improving
efficiency through its operational life.
STRATEGIC INVESTMENTS
a. Stabilised Gasification operations
produce syngas of 950 TPH which
has helped to reduce Natural
gas consumption.
b. Reliable supply of hydrogen from
gasification complex has minimised
hydrogen generation from our own units.
c. Gas turbines at Jamnagar are being
retrofitted in a phased manner to
facilitate syngas firing capability with
reduced NOX and SOX emissions.
d. The cogeneration power plants at Hazira
Manufacturing Division (HMD) and Dahej
Manufacturing Division (DMD) and the
hot oil unit at Patalganga Manufacturing
Division (PMD) have optimally switched
fuels and reduced their energy
costs, owing to the reduction in
natural gas prices.
DESIGN STAGE
The Company’s initiatives on clean
technology, energy efficiency and
renewable energy include:
• Use of heat pump compressors at
reboilers of butane- 1 distillation column
and butane prefractionation column at
High Purity Iso-Butylene (HPIB) plant.
• Use of steam condensate as a
heat source for distillation column
reboiler at HPIB plant.
OPERATIONS STAGE
a. Optimisation of steam, power and
hydrogen on an hourly basis across
various complexes at JMD.
b. Minimised flaring from new paraxylene
plant’s Reformate Splitter Column with
an innovative Subcooled Reflux Scheme.
c. Generation of medium pressure steam
in Heavy Naptha Unionfining Unit
and platformer section by installation
of hot separator.
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d. Replicated the benefit of modifying
crude preheat exchangers for better
heat recovery and to reduce fuel
consumption in crude heaters.
e. Optimisation of dryer regeneration
cycles in gas dryers of C2 Complex to
reduce steam consumption.
f. Replicating the use of an advanced
distillation technology for the separation
of petrochemical Naphtha.
g. Increasing process efficiency by in-
house modifications in carbon recovery
package in Petcoke Gasification.
h. Evaluation of an advanced Heat
Integrated Distillation technology
is in progress.
i. To reduce GHG emissions at the
complex level, New Cracker Furnace
configuration is being studied.
RIL incentivises and celebrates ideas
pertaining to energy conservation in
company wide forums like Mission
Kurukshetra and focused annual event like
energy conservation week.
PERFORM ACHIEVE AND TRADE
TARGETS
Seven manufacturing locations of RIL have
been given specific energy consumption
targets under Perform, Achieve and Trade
scheme by Government of India. These
include, chlor-alkali unit at Dahej, Jamnagar
refinery and petrochemical units at Dahej,
Nagothane, Hazira and Vadodara and
textile unit at Naroda. RIL is currently
working with Bureau of Energy Efficiency
(BEE), Ministry of Power, for closure of
Perform, Achieve and Trade Cycle II.
Energy conservation / Resource Conservation
Energy conservation by reducing the load on chillers
For Reliance Jio Infocomm Limited site operations, Heating, Ventilation and Air
Conditioning (HVAC) system plays major role in total energy consumption. Precision
Air conditioners and Chiller system along with air handling units are installed in
server rooms to maintain the desired temperatures and ventilation.
Details: Hot Air Aisle containment inside the server rooms are installed for achieving
more efficiency for Precision Air Handling Unit (PAHU).
Faster cooling, improved ventilation
By implementing hot aisle containment, hot air in the server room moved in
upward direction and provided clear separation between cold and hot air. This has
improved overall thermal performance.
This has improved overall thermal performance by reduction in numbers of PAHUs
and lowering carbon emission.
118
ENVIRONMENTAL PERFORMANCE
To set organisational boundaries for
consolidated GHG emissions, RIL has
utilised the operational control approach
for the various entities covered under the
Report. Accounting of GHG emission at RIL
is based on its group level internal standard
which is based on standards and guidelines
issued by GRI, WRI/WBCSD, IPIECA
and ISO 14064.
RIL has registered eight Clean Development
Mechanism (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. RIL
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.
GHG EMISSION REDUCTION
The climate change mitigation strategy
and energy conservation initiatives
implemented by the RIL team help reduce
GHG emission of the organisation’s
operations. RIL endeavors to adopt the
best available technology and equipment
in its operations, entailing least energy
consumption. The dedicated energy
teams across the manufacturing locations
continuously work towards reducing
specific energy consumption. These
initiatives result in reduction of GHG
emission from RIL’s operations. Additionally,
the renewable energy projects also help
achieve significant GHG emission reduction.
During the year, the Company installed
52kW roof top solar panels at Patalganga
manufacturing division. A total GHG
reduction of 351.4 ktCO2e was achieved
due to various energy conservation
and renewable energy initiatives
by the Company.
REDUCTION IN FUGITIVE EMISSION
RIL practices ‘Leak Detection and Repair’
programme across all its major sites to
prevent and reduce fugitive emission. The
good preventive maintenance practices
at RIL’s manufacturing divisions also help
prevent fugitive emissions eg.installing
of double mechanical seals in pumps and
valves to reduce fugitive emission (PMD).
RIL continues to encourage inclusivity by
celebrating environmental occasions and
spread awareness on environment and
conservation, within site and beyond the
fence. During the year ‘World Water Day’,
‘World Environment Day’ and ‘Energy
Conservation Day’ were observed with
befitting programmes within site and in
neighborhood areas.
AIR EMISSIONS
RIL regularly monitors emissions as a part
of its environmental management plan. At
RIL, stack emissions are regularly monitored
at all manufacturing locations, for all the
parameters stipulated in the ‘Consent to
Operate’ including 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 Central
Pollution Control Board (CPCB). Due to RIL’s
perpetual efforts to reduce air emissions
from its operations, in FY 2019-20,
absolute PM emissions decreased by 21.7%
while NOx emissions decreased 14.6%
compared to FY 2018-19.
TPM
(000’MT)
NOx
(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 performance. The
Company regularly submits environmental
monitoring reports to 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 2019-20.
CLEAN WATER
Water remains one of the most precious
resources on the planet. In addition to
minimising the use of freshwater, Reliance
continues to widen its use of recycled water
and treated effluent.
RIL continues to reuse treated effluent
from the manufacturing plants for other
application, besides horticulture purpose.
Over the years, the treated effluent is
increasingly being reused for cooling tower
make-up and for firewater requirement.
Water losses are being minimised and
rainwater harvesting capacities are
being augmented.
During FY 2019-20, Reliance took several
steps across multiple manufacturing
locations to reduce its water related
impacts. In Vadodara Manufacturing
Division (VMD), treated sanitary effluent
streams are diverted as make-up water for
cooling tower. In Nagothane Manufacturing
Division (NMD) treated effluent is
increasingly being used in fire water
network and horticulture. In Patalganga
Manufacturing Division (PMD) efforts have
been taken to reduce steam and water
losses in system. In Silvassa Manufacturing
Division (SMD) AHU condensate is being
collected and treated for reuse in the
process. In Hoshiarpur Manufacturing
Division (HoMD) multiple initiatives
were taken this year like, installation of
water efficient faucets and taps, reuse of
treated wastewater for plant and domestic
usage, among others. Overall rainwater
harvesting capacity was increased in
NMD, SMD and HoMD.
As a result of these efforts, in
FY 2019-20 the total water recycled
across all manufacturing plants was
74.4 million m3 as compared to
73.1 million m3 in FY 2018-19. Total
water recycled has increased by 1.8%
compared to previous year. RIL ensures
that all wastewater generated is
treated and meets all state and central
regulatory requirements.
WATER RECYCLED
(in Million M3)
PREVENTING SOIL
CONTAMINATION
RIL focuses on using resources as efficiently
as possible and simultaneously works
towards minimising emissions and waste
generated. The Company ensures that all
waste is sent to government-authorised
disposal agencies. Effluents generated are
treated to meet the most stringent state and
central regulatory requirements. RIL has
undertaken initiatives such as converting
the organic waste into ‘bio-manure by
vermi-composting method, thereby
reducing the waste disposed. RIL also
undertakes stringent monitoring measures
to prevent spills during storage,
handling, and transportation of materials.
During FY 2019-20 the hazardous and
non-hazardous waste disposed from RIL’s
hydrocarbons operations were 92.4 kT and
606.6 kT respectively.
RIL sends its hazardous waste generated
in its manufacturing units for co-processing
as alternate fuels and raw material (AFR)
in cement industries. Manufacturing
locations, namely HMD, DMD and VMD,
continue to utilise the waste generated at
the locations, for co-processing in cement
industries. The main projects undertaken
during the year include; utilisation of plastic
waste in 40 km road resurfacing project
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(NMD), installation of anaerobic digester
for disposal of degradable waste (DMD),
installation of volute machine to reduce
quantity of ETP sludge (HoMD), and usages
of new modified adsorbent to NGCT to get
higher life with consequent reduction in
waste disposal frequency (PMD).
BIODIVERSITY MANAGEMENT
RIL regularly monitors 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.
Reliance has initiated an evaluation of its
environmental aspects using the Natural
Capital Protocol published by the Natural
Capital Coalition.
RIL’s efforts for in-situ preservation of
ecosystems prompts the organisation to
improve green cover at its locations. To
promote biodiversity, more than 2.2 crore
saplings have been planted across all RIL
sites till date. Apart from this 2,600 acres
of green belt has been added across all
manufacturing divisions since inception.
Marine litter clean-up at Versova beach and
volunteering program
Reduce and remove plastic littered into the oceans, which creates risks
for marine ecosystems and life under water.
RIL is working with Afroz Shah’s team to clean up the Versova beach in
Mumbai. RIL sponsored 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. The machine clocks 4,000 man-hours
of work in an eight-hour shift and can work in both dry and wet weather.
RIL encouraged employee volunteers, contributing 1200+ hours in regular
clean-up activities on clean of Versova beach.
More efficient and systematic
clean-up recovering about 8500 MT
of solid waste in 12 months.
Beach cleaned of
non-biodegradable waste from
the ocean and saw return of a
thriving ecosystem including
seeing Olive Ridley turtles on
the beach after a gap
of 20 years.
NATURAL CAPITAL
PROTOCOL
Given the many ecosystem services
that nature provides, the organisation is
committed to factor in its environmental
impacts on wider societal wellbeing.
The concept of natural capital and
measuring, valuing and accounting for
it – is evolving, hence Reliance have taken
various initiatives to develop understanding
about Natural Capital, including methods
for its measurement, valuation and to
learn about its applications. Natural capital
assessments provide extra insights which
enable Reliance to understand RIL’s impact
and dependency on the environment to
help us manage it in a suitable way and take
informed decisions.
TRANSITION PATHWAY
INITIATIVE (TPI)
Reliance is making conscious efforts to
adopt the elements of Transition Pathway
Initiative (TPI) into its business strategy.
The company uses its three line of defense
model for continuous and real-time
assessment of climate related risks. As part
of these efforts, the Company measures
and monitors its GHG emissions, identifies
emission hotspots and develops strategies
to mitigate its GHG emission footprint.
Through, its Research and Development
efforts Reliance is driving development of
climate friendly technology solutions such
as, alternate energy sources like Fuel cells,
bio fuels etc. Reliance is also consciously
investing in renewable energy and energy
efficiency technologies to mitigate the
GHG emissions at an organization level.
These include many ingenious solutions
developed by employees at plant level. One
example of which was to utilize methane
in waste water in PTA plant at Dahej which
reduced the dependency of the plant on
conventional fuel.
DILIGENT UTILISATION OF
SCARCE NATURAL RESOURCES
RIL’s refineries are among the top quartile
performance, according to the Solomon’s
energy intensity index. 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 amongst the highest conversion global
refineries with no products that can be
classified as ‘bottom-of-the-barrel’.
To improve its raw material productivity,
RIL has taken various measures such
as recycling of slop oil and oily sludge,
conversion of organic waste into organic
manure and bio gas, recycle of spent
catalysts through authorised re-processors.
In 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. With R&D teams the business has also
launched innovative products like R|Elan
and ReRoute made from waste plastics.
Raw material supply in bulk tankers leading
to reduced packing material, handling,
contamination and savings to customers.
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.
Jio has created a massive digital ecosystem
for a millions of Indians. By connecting
the unconnected, the platform company
doesn’t just provide world class fixed-
mobile converged connectivity, but also
digital solutions across the customer life
cycle. Digital solutions that enable seamless
video conferencing like facilities thereby
reducing the need to travel and avoiding
travel emissions. Advanced technologies
and the digital economy enable a
reduced footprint.
Enabling Work from home, Learn
from home & Health at Home for
Indians, Jio has launched JioMeet,
an integrated connectivity solution.
Moved from
Physical to Digital
Be better connected with Jio and
reduce the need for travel
Enhancing the quality of life
through digital commerce facilities
Monitoring
Environmental
Footprint
In the last assessment carried
out in FY 2017-18, Hazira plant
conducted impact assessment
on biodiversity and marine
ecosystem to determine
ecological sensitivities, a total of
108 plant species were observed
in the study area comprising 47
species of trees, 27 species of
shrubs, 31 species of herbs and
grass and 3 species of climbers
Among the faunal species,
herpetofauna were represented
by 26 species, avifauna by 140
species and mammals by 8
species. A MoEFCC approved
laboratory is also engaged in
marine environmental monitoring
assessment, which comprised a
total of 12 water quality parameters
and 5 biological parameters at
23 sub-tidal sampling locations.
Additionally, 9 sediment quality
parameters were tested at 8
inter-tidal sampling locations.
The results of the study
were compared with data
sets since 1983 to create
an overall assessment of
the ecological status. The
balance within biodiversity
and marine ecosystems was
maintained with minimal
environmental impact. RIL
also develops green belts
which enhances flora & fauna
Jamanagar petcoke gasification – one of the
largest ‘Clean Fuel’ projects in world
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SUSTAINABLE GROWTH AT RELIANCE
The Integrated Approach:
Human Capital and People Connect
KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
FY 2019-20
FY 2018-19
Reliance believes the highest act of value-creation lies in saving
human life, ensuring human health, and enhancing human
wellbeing and happiness. The drive to solve societal challenges,
the passion to perform and the dedication demonstrated every day
by our people has made Reliance one of the largest conglomerates
in India. The scale of Reliance’s operations lead to creation of
indirect employment - over 50 lakh people.
While the world grapples with COVID-19 pandemic, we at
Reliance have brought together all our strengths across Reliance
Foundation, Retail, Digital Services and Hydrocarbons to do
more for our country. To ensure our employees and families
are protected through the crisis, we have set out several health
and hygiene measures including national emergency response,
JioHealth Hub for virtual doctor consults, guidance resources on
mental, emotional, psychological and nutritional health, to name a
few. Most of these services extend beyond our employees and are
for the nation. Additionally, we truly appreciate our employees on
the frontline – Reliance Foundation Hospital’s doctors & nurses,
Retail store managers and employees, telecom infrastructure
teams and all other essential services’ employees who have
served our nation in times of need.
With unity in diversity of skill, ability, gender and generations,
we have built industry leaders across Retail, Digital Services, RIL,
Media and Foundation. Our work culture revolves around our
values, and the themes of innovation, diversity & inclusion, human
centricity and embracing the future with boldness. This is bolstered
by our approach to exponential learning opportunities which is
augmented by a digitally connected ecosystem.
We believe in empowering our people with the best available
facilities and developing them through the best-in-class learning
opportunities to build a workforce ready for the future.
UN’s Sustainable
Development Goals
Material Topics
• Talent Attraction and Retention
• Health and Safety
• Labour management
• Employee Diversity
•
Innovation
Other frameworks referenced
API/IPIECA, UNGC,
NVG-SEE, NGRBC, UNGP
National Missions
• Atal Innovation Mission
• Support to Training and Employment
Programme (STEP)
1,94,056
Total number of Reliance employees
1,95,618
RIL HSE Expenses (` in crore)
664
668
Cumulative ideas submitted under
Mission Kurukshetra innovation
programme
29,000+
Total training hours in Reliance are over
1.1+ CRORE man-hours
Career Acceleration Program (CAP),
Competency Assurance System
(CAS) and Corporate Graduate skills
programme for employees to groom
them for leadership roles.
23,000+
Collaboration with
world-class universities
Future-ready human resource with
Reliance DNA and values
Diversity in skill, generation
and ability
51.6% are millennials under the age
of 30 years
~24% of Reliance Retail employees
are women
RIL has been recognised as an
employer of choice and has been
ranked 10th in the 2019 ‘LinkedIn
Top Companies
RIL has featured in India’s Top 25
‘Best Companies to Work For’ in
Business Today’s ‘People Strong
Survey’ for the 4th consecutive year
VALUE CREATION
Whether it is in the form of employment opportunities or in the form of wellbeing of its employees, Reliance has put conscious
efforts to deliver increasing value.
Employee Strength for Reliance (Nos.)
HSE Expenses (` in crore)
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SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Human Capital and People Connect
RELIANCE’s GOALS FOR SUSTAINABLE DEVELOPMENT
Goals
Highlights of FY 2019-20
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.
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.
• Competency Assurance System (CAS) deployed
to ensure safe and reliable operations
• S&OR facilitates alignment with the Global
standards like OSHA, API, NFPA
• 51.6% are millennials (under the age of 30 years)
• Crossed the target for 2030 and are at 15.3%
women employees at Reliance group level
• Best-in-class policies for women, and other pro-active measures like
24*7 toll free helpline, child care facility and relevant workshops
• Saksham like initiatives to provide more opportunities of
growth for the differently-abled: reaching 1000+ people
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.
• 24 x 7 emergency services offered to all employees
and their family members through REFERS
• Workshops and sessions on Yoga & Meditation, and celebrated
International Yoga Day across sites and hospitals
• R-Swasthya - for physical, mental, social, spiritual and
financial wellbeing of employees and their families
Reliance, is committed to attracting the best
talent, empowering them with opportunities
for continuous learning and, developing
an organisational culture wherein every
individual personifies the 3Ps – Purpose,
Passion and Perseverance. The benefits of
competitive advantages and the synergies
that exist between them are only realised
through the 3Ps. The result is a workforce
with unmatched capabilities, anchored in a
culture of grit and excellence.
“Pursue your goals even in the
face of difficulties and convert
adversities into opportunities”
Shri Dhirubhai H. Ambani
Staying true to vision of the Founder
Chairman, Reliance employees are
encouraged to be entrepreneurs and
architects of their own destiny and
embody the “Founder-Owner” mentality.
“Ownership Mindset” is also enshrined
as one of Reliance’s six core values. The
Company ensures the right conditions for
its people to grow and flourish while living
the core values and behaviours.
124
EMPLOYEE ENGAGEMENT
RIL’s objective is to assess and continuously
improve the state of employee engagement
across hiring, onboarding, performance,
development and retention in an ongoing
manner to enable continuous feedback and
improvement of employee’s experience.
BRING YOUR FAMILY TO WORK
Bring Your Family to Work (BYFW) is an
initiative for employees to showcase their
workplace to their family members. The
fourth edition of the BYFW witnessed
participation from over 21,400 employees
and family members, a 50% jump from
the third edition of the event. BYFW 2019
showcased how. The “New Reliance for
a New India” theme was incorporated
across stalls and displays. 3,000 saplings
were given away as souvenirs by Reliance
Foundation to raise awareness on
sustainability. The event also garnered
25.23 lakh impressions.
RELIANCE FAMILY DAY
Reliance Family Day (RFD) commemorates
the birth anniversary of RIL’s visionary
Founder Chairman, Shri Dhirubhai Ambani,
through many activities. This year,
RIL Chairman and Managing Director
Sh. Mukesh Ambani said, “We have
to always remember the values of our
Founder, Sh. Dhirubhai Ambani. For him,
purpose was most important. We always
say that for all of us at Reliance, it is India
first; Reliance, second; and self, last. I am
sure that many generations of Reliance will
carry this tradition forward.” In 2019, over
3 lakh people attended the celebrations
across various locations.
RECOGNITION
The Company has received several
awards and accolades in recognition of its
people practices:
Rankings:
LinkedIn WIWTW – Top 10: RIL has been
recognsed 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.
BT Best Places to Work For – Top 25:
RIL has featured in India’s Top 25 ‘Best
Companies to Work For’ in Business
Today’s ‘People Strong Survey’ for the 4th
consecutive year.
EMPLOYEE ENGAGEMENT
DURING COVID-19
As India’s largest private company with
almost all of its businesses in the “essential
services” sectors, Reliance recognised the
special responsibility it bore to support
the nation and fellow citizens through the
COVID-19 crisis.
The evolving situation around COVID-19
was monitored closely and the resulting
safety, social, and economic risks posed
by the crisis were evaluated on an ongoing
basis. Right from the beginning, the
leadership pushed towards extensive safety
protocols and mandatory practices across
India to ensure all efforts were made to
keep Reliance COVID-free.
Employee and Family Wellbeing
1. Reliance Foundation Hospitals, RIL
doctors, and other healthcare personnel
worked round-the clock for the health
and safety of nearly 20-lakh extended
Reliance family throughout India.
2. Developed COVID-19 testing capabilities.
3. Set up a 24x7 emergency helpline
number for Reliance employees
and families globally for any
emergency situation.
4. With the digital capabilities of Jio and
the medical expertise of doctors at
Sir H N Reliance Foundation Hospital,
developed a Virtual OPD and Inpatient
Care platform on the JioHealthHub app.
Employees and family members could
book a free video consultation with RIL
doctors and receive virtual healthcare,
counselling, diagnosis, and prescription.
5. The self-diagnostic daily COVID-19
Symptoms Checker was enabled for all
employees and their family members
to monitor their health status on a daily
basis. Emergency response protocols
were triggered automatically in case
anyone’s symptoms showed a high
risk of COVID-19.
7. Continued to issue frequent, accurate,
valuable, and up-to-date communication
on COVID-19, and created guidance
resources on mental health and
physical safety for all employees and
family members.
8. Psychological guidance sessions were
arranged with Reliance psychiatrist and
regular resources on well-being were
shared with employees.
New ways of working
1. Approximately 90% of staff was moved
to an agile working arrangement.
2. IT and Medical Support was enabled
for all staff members and to help them
adjust to new work arrangements,
curated, bite-sized learning modules on
R-University, the Company’s learning
portal, were also rolled out.
3. Adapted the hiring process to roll out a
Virtual Summer Internship Programme.
Engaged 84 new hires through remote
onboarding, virtual friendly projects,
gamification, online learning modules,
and virtual assessments for pre-
placement offers.
Crisis Communication Practices
The Company issued advisories, guidelines,
and guidance documents regularly to
encourage early adoption of safety
measures and enable business continuity.
Communications were timely, accurate,
consistent and prioritised the physical
and mental wellbeing of all employees,
contractors and family members.
The Company also developed a
comprehensive compendium “RIL Info Pack
on COVID-19” and published on the internal
employee portals including topics such as:
1. Enabling working from home through
helpful manuals on IT connectivity
2. Guidance resources on coping
with stressful situations for
employee wellbeing
3. Ways of dealing with personal
challenges in new work environments
4. Providing easy access to all
important contacts such as medical
assistance, IT, among others through
frequent reminders
5. Encouraging daily monitoring of
health and reinforcing safety and
hygiene practices
TALENT MANAGEMENT
RIL endeavors to meet all internal talent
requirements. It focuses on developing
high potential talent pools by providing
accelerated learning and growth
opportunities. There are various initiatives
taken by the organisation to achieve this,
including on-the-job trainings, digital
learning, coaching and workshops.
Some prominent Talent Management
practices are:
1. Career Acceleration Programme
Launched in 2015, the Career
Acceleration Program (CAP) is the
flagship mid-level cadre development
program to identify calibre and provide
an accelerated career growth. The
program offers a unique opportunity
to the participants to work on cross
business assignments, high-impact
action learning projects and to interact
with senior leaders.
2. Sapphire Coaching Programme
This programme provides focused and
customised development opportunities
to managers in the manufacturing
business. Using the Growth, Self-
Awareness, Authenticity (GSA)
development model for leadership
excellence, the programme emphasises
on 2 key tenets of being a successful
leader: delivering performance and
developing people.
3. First Line Young Engineers at
Reliance
First Line Young Engineers at Reliance
(FLYER) is a structured development
program for young engineers. In
association with IIM Bangalore, the
program is designed to equip Reliance
Engineers with requisite skills and
knowledge to build their careers at
Reliance. The first batch of 40 FLYER
participants were selected through a
robust process from a pool of 360 young
graduate engineers who had applied
to the program.
4. Step-Up Programme
A highly focused programme was
introduced in 2015 to prepare high
potential employees to be skill-ready for
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SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Human Capital and People Connect
their transition into next level leadership
roles in the organisation. Over the last
5 years, around 300 employees have
benefitted from this programme.
5. Speed mentoring
Speed mentoring helps employees
seek professional guidance and receive
insights from multiple leaders in a
short time-span
6. Vision boarding
Vision boarding help employees to
identify their career goals and create
an individual development plans
to achieve them.
7. Talent reviews
Talent reviews are conducted annually
helps identify, assess and develop
employees to meet the leadership needs
of the business.
PEOPLE DEVELOPMENT INITIATIVES AT SITES
DRONACHARYA –
FE SKILL SCHOOL
Panel officer (PO) is a critical job role
in the asset facing team. Hence it is
imperative to create a strong talent
pipeline of PO for continued business
operations. The Dronacharya scheme
trains Field Executive (FE) talent pool for
the PO role and their entire competency
assessment and assurance is completed
during their FE job tenure.
WOMEN IN NIGHT SHIFT
For the first time in the history of Reliance,
JMD has acquired permission that allow
women employees to work in night shifts.
This calls for multiple levels of preparation
to create an enabling environment which
was done seamlessly.
MDP PROGRAM IN
COLLABORATION WITH IIM B
JMD has collaborated with IIM B in
creating a customised Management
Development Program (MDP) for
identified future leaders with high
potential. It’s a combination of classroom
and action learning project with strong
evaluation process through simulation
and case studies. All the leaders who
complete the course will be given
higher responsibility to ensure maximum
utilisation of the acquired competency.
EMPXP
The Employee Experience Platform (EmpXP) is an endeavor to create the dedicated
digital ecosystem required to build human relationships and drive productivity. EmpXP
facilitates continuous improvements by regularly soliciting employee feedback and uses
advanced analytics to systemically generate insights that help leaders rethink the vision for
the organisation.
Roll-out across Reliance:
EmpXP has over 96,000 users across
Hydrocarbons and Retail, and with the
planned scale up in Jio, will cater to over
2 lakh active employees by the end
of August 2020.
Employee Experience Platform
A mobile first, hybrid ‘System of Interaction’ layer, integrating
7 Key Features in a ‘Single Window’ platform
1 Employee
Services
2 Integrated
Search
3 Self service
Dashboards
4 Communities
of Practice/Interest
5 Employee Virtual
Assistant-Voicebot
6 Notification, Nudges
and Reminders
7 HR Consumerisation
(Ratings, Feeback)
Self Service and
Self Sufficient
Contextualised, Personalised
and Seamless Experience
Easy Scale-up across
the Reliane Group
The Platform’s services have customised
features based on differences in the
business environments, deliverables and
employee needs.
The platform continues to evolve and
improve in an agile manner by collecting
and incorporating the user feedback on
every micro-service used by employees on
a real-time basis. As of today, the average
app rating stands at 4.53 (out of 5) from
over 23,000 employee reviews.
Learning Platform
The EmpXP features an Integrated Learning
Management and Delivery Platform that
is augmented by an open source content
authoring tool to enable businesses, teams,
and subject matter experts to create their
own content. It is powered by a search
engine and an AI-enabled assistant for
personalised recommendations based on
demographics, history and preferences of
learners in line with the content library.
RIL has developed a maternity support programme with reasonable adjustments such as
reserved parking for pregnant women employees and employees with disability, 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, child care facility and self-defense
workshops on a regular basis.
5E FRAMEWORK
1.76 LAKH
Users
20,000
Daily Learners
Global Thought Leadership with Josh Bersin
“Reliance and Reliance Jio have created
a world-class work experience for their
employees. Through careful design,
innovative technologies, and an amazing
culture, Reliance Industries sets a
standard for other organisations around
the world.” - Josh Bersin, Author and
HR thought leader, mentioned at Global
Learning and Talent summit hosted by RIL.
DIVERSITY & INCLUSION
Diversity and Inclusion (D&I) at Reliance
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. Under the
guidance of Ms. Isha Ambani, RIL has
developed a Group Diversity & Inclusion
Charter which follows a 5E framework
to support a more inclusive workplace
for all employees.
Educate
Sensitise
and develop
capabilities to
foster an
inclusive
environment
Encourage
Support of
internal and
external
stakeholders,
increase visibility
Enable
Support though
infrastructure,
practices and
policies
Experience
Provide an
inclusive
experience to all
employee and
grow them allies
and ambassadors
Effectiveness
Create,
Measure,
Monitor,
Report and
Benchmark
International Women’s Day (IWD) 2020 was celebrated across RIL’s sites and offices
through a host of events. The day culminated with Ms. Isha Ambani launching the coffee
table book, The Women of Reliance – 101 Perspectives, featuring a hundred and one real-
life stories authored by women from across Reliance. Addressing the audience at the event,
Ms Ambani said, “I am proud of and grateful to the women at Reliance who have fueled the
growth of this organisation. In our offices and plants, on shop floors and in stores, leading
from the front and working behind the scenes – the women of Reliance have shown that
diversity is not just a business imperative, but also a huge business advantage.”
Ms. Isha Ambani launching the coffee table book, ‘The Women of Reliance – 101 Perspectives’
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NEW-AGE RETAIL INITIATIVES
Reliance Retail, believes in echoing the
ideology of being a diverse yet inclusive
organisation. The customer base is diverse
and a diverse team is needed to penetrate
to the mind-set of a diverse customer
base. A top-down approach was adopted
to demonstrate the spirit of inclusion and
diversity. As a starting point, around 200+
senior leaders, have been sensitised on
“Unconscious Biases” as biases often serves
as blockages to an inclusive workplace. As
a supporter of mindful leadership, Reliance
Retail developed the “WE Women Leaders”
Program which focuses on mentoring
women. In Reliance Retail, there has been
focus on several women initiatives to foster
culture of gender equality and inclusion.
1. Building managerial capabilities
for women:
a. Jagriti and Pragati are two initiatives
launched by Reliance Retail grocery
teams. While Jagriti is a 6 months
program focusing on building managerial
capabilities of women associates,
Pragati is a 90 day program which aims
at building capabilities of Women Store
Managers. 75 women employees have
successfully completed the program and
have taken up higher responsibilities.
b. Flying Lessons was a series of one-
day workshops intended to raise
aspiration levels by providing exposure
to ways and means of maximising their
personal and professional potential.
These workshops were conducted at
Bengaluru and Mumbai covering 52
participants across Levels.
2. HER stories series - recognising
success stories of women in the
organisation.
3. All women stores: Since there are
a large number of women customers, a
unique concept of “All Women Stores”
was brought in to cater to their specific
requirements.
4. Reintegration workshop for
5. Financial planning workshops:
”Financial Planning” has been identified
as one of the focus areas under “WE
WOMEN” to provide requisite knowledge
and skills and help them manage cash flow
effectively.
6. Stores run by women store
managers: There are women store
managers across 65 grocery stores.
They ensure better hygiene, discipline
and working conditions.
There is a format-wise charter for stores
and corporate with specified targets
around gender equality. An increase
of 3% and 6% in the women headcount
percentage at corporate and stores
respectively is being targeted.
Dialogue with Senior
Women Leaders
Ms. Isha Ambani hosted a Networking
meet “D&I Dialogue with Senior Women
Leaders” across the Reliance Group.
The purpose of meeting was to meet
the senior women leaders and onboard
them on the gender inclusion efforts.
The women leaders volunteered
to support the inclusion agenda
and help drive it within their roles,
businesses and organisation at large
Panel Discussion with
external experts
Panel discussion with external D&I
experts to create awareness on
inclusion, leading to questioning biases,
thereby creating a safe workplace.
maternity returners: Reintegration
workshop was designed to offer support
and help ease the transition for maternity
returners back into workforce.
The session generated positive
feedback and also resulted in more
employees wanting to contribute to
the inclusion agenda.
Saksham
The “Saksham” program believes in
capabilities of the differently-abled
and provides them a platform with
equal opportunity at Reliance Retail
grocery stores.
Identifying Sourcing Channels: The
right people with basic understanding
of work culture and ability to adjust
to the workplace were on-boarded
through avenues such as tie-ups
with NGOs, referral programs and
employee ambassadors.
Role Identification and Training
Process: Suitable roles for the
differently-abled staff were identified
through initial shortlisting, completion
of On the Job Training (OJT) program
and completion of ‘digital work’
training modules.
Sensitisation: Employees and
customers were sensitised through a
variety of training materials.
• Under the Saksham Initiative,
nearly 1000 differently-abled
persons have been employed
at Reliance Retail stores across
India till date.
• Over time, the Differently abled
have succeeded in making an
impact on the store operations.
The customer service at the
stores where they are employed
is at par with any other Reliance
Retail store.
LEARNING & DEVELOPMENT
RIL’s expansion into diversified segments
requires specialised skill sets requiring a
learning environment that is accessible and
automated. During FY 2019-20, Reliance
imparted 1.1+ crore man-hours of training to
its people across the Group.
The organisation focusses on building two
distinct set of capabilities, namely:
• Technical and Functional
• Behvaioural and Leadership
A comprehensive exercise to identify
business and function-specific skill
requirements has been conducted in
partnership with respective apex leadership
teams. Across 3 businesses and 8 functions,
251 current and 148 future skills were
identified to be incorporated into learning
curricula for FY 2020-21.
BEHAVIOURAL AND LEADERSHIP
CAPABILITY BUILDING
Through the ‘One Reliance’ approach
to behavioral and leadership capability
building, a comprehensive framework
called as ‘Learning Trek’ was introduced
in FY 2018-19.
In FY 2019-20, Learning Trek delivered
substantial results in the four focus areas
that were chosen – Base Camp for new
hires (Learning by Mandate), Ascender
for soft skill capability building (Learning
by Choice), Great People Skills for people
manager capability building (Learning
by Role), STAR Trek for leadership
development (Learning by Invitation). It also
expanded its scope to include 2 additional
areas – R-Aadya (Diversity and Inclusion
related Learning) and Digital Capability
(Enhance our Digital Journey).
Innovative sessions as part of the R-Manager
Base Camp
Ascender
Great People Skills
R-Aadya
Digital Capability
Star Trek
BASE CAMP
Base Camp aims to strengthen alignment
of new hires with organisational culture,
processes and practices, thereby
accelerating their productivity and time
to job-readiness.
GREAT PEOPLE SKILLS
People manager capability building
targets all 5000+ people managers
across the organisation in line with the
role requirements across the hierarchy of
people managers.
ASCENDER
It’s a buffet of interventions focusing on
behavioural and soft skills development to
facilitate ‘ascent’ towards career excellence..
R-AADYA
Reliance’s effort to build and foster talent
across diverse employee groups is
strengthened via D&I-focused interventions,
such as R-Aadya (to develop women
leadership in RIL), Inclusive Leadership (to
generate awareness about unconscious
bias), among others.
DIGITAL CAPABILITY
This initiative aims at enabling platform way
of working. It is planned as a comprehensive
Organisation Development process
that taps into all relevant elements like
processes and practices, structure, metrics,
rewards, and talent.
STAR TREK
STAR (Select Talent At Reliance) Trek offers
leadership developmental opportunities to high
caliber talent at Reliance. It also focusses on
launching and institutionalising experience and
exposure-based learning approaches.
DIGITAL LEARNING
Anytime, Anywhere Learning: RIL endeavors to enable learners to learn anytime,
anywhere and on any device. On a continuous basis, the learning function invests efforts
towards developing ‘Best-in-Class’ learning solutions in partnership with the ‘Learn and
Grow’ Platform. In FY 2019-20, employees in Hydrocarbons accessed over 2 lakh hours of
digital learning content.
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L&D – Behavior Based
Safety Program in E&P
L&D – Workshop for
Petro-Marketing
The program “Behavioral Based
Safety” was designed to improve the
organisation’s safety performance
by addressing factors that are critical
to building an incident free culture,
where individuals take personal
responsibility for safety.
The training programs provided
opportunities for participants to
practice safety conversations and to
give feedback to crewmembers on
how their actions impact team safety.
The flagship training program
has helped E&P to enhance the
safety culture and achieve critical
milestone of zero incident for
recent drilling projects and is
geared up to ensure the same for
all upcoming projects.
To empower Dealers of low scoring
(Third Party Audit) Retail Outlets
by identifying performance gaps,
demonstrating best practices and
thereby committing towards attaining
operational excellence.
One day workshop was designed for
23 dealers to learn from experiences
and practices of high performing
dealers. Brainstorming sessions
were conducted on closing the
Non-Compliances with respect
to Customer Service, Quantity &
Quality and Safety.
3 weeks post the workshop,
increase in overall score at
Mancherial outlet by 20 % (CIP by
12 %); overall score for nine ROs
have increased by 11 % on average
(CIP by 5 %).
Context
Impact
LinkedIn Learning
Learnet
LinkedIn Learning (erstwhile Lynda.com)
is a content partner with RIL to provide
high quality micro and macro learning
through digital video tutorials by experts
Learnet is the in-house platform for
social learning and knowledge sharing
across businesses, levels and locations,
via video and text blogs and interactive
engagement features such as like,
share, comment
Across Reliance, 72,600+ employees
have been active users of erstwhile
Lynda.com (now upgraded to LinkedIn
Learning) leveraging the power of
best-in-class bite-sized video learning
content
Across Reliance, over 45,600
employees accessed the portal,
sharing 2,671 self-recorded video
and text blogs or discussions, with
8.5 lakh views and 37,628 likes and
comments
Outcome
of Digital
Learning
i. Democratisation of learning – anytime, anywhere, on any
device, for anyone
ii. Leveraging externally curated as well as internally created
learning content
iii. Internal crowd sourcing of ideas, breaking silos across functions,
hierarchies, geographies
SPECTRUM 2019
Spectrum, RIL’s annual dedication to the culture of continuous learning and development,
expanded as a learning and career week in its fourth year. The initiative witnessed around
25,800+ employees participating in a plethora of learning and development activities, all
centered around the event theme: I’M IN – Involved, Invested, In-charge. It was a pan-RIL
event that was held across all sites and locations. Some key events include interactive
Experience Zones showcasing next-gen technologies, immersive sessions leveraging
VR-based simulations, Speed-Mentoring sessions, Fire-Side Chat with Apex Leaders, an
all-Reliance Quiz competition, Panel Discussions, IDP Workshops, Blog-sharing, among
others. The key highlights were:
• 2.5 Million impressions on Social Media
• 27,500 views on Learnet (social learning and blogging portal) during Spectrum
• 95% advocates believe that Spectrum promoted a culture of learning
TRAINING & COMPETENCY ASSURANCE FOR SAFE & RELIABLE
OPERATIONS
To ensure reliable operation delivery and safety competence amongst frontline staff, RIL
has deployed a Competency Assurance System (CAS). Employees go through structured
learning followed by a series of assessments and on-field tests. To ensure robustness of
competency process, two lines of defense have been institutionalised for competency
verification and process auditing by internally trained verifiers and auditors.
Manufacturing learning and competency teams have defined over 15,000 customised
learning content, quizzes and task tests for different asset facing job roles and specific
work areas. Over 7,000 asset facing employees including young graduate and diploma
engineer trainees (GETs & DETs) have been enrolled into CAS program in last 2 years
and over 5,800 employees have been fully certified for at least one role-area specific
competencies and many more are in advanced stages of the assurance process.
HEALTH & WELLBEING
(R-SWASTHYA)
R-Swasthya was
established with the
objective to Endeavour,
Encourage and Enhance
holistic wellness in an
engaging manner
encompassing the physical, mental, social,
spiritual and financial wellbeing of the
employees and family members.
INITIATIVES IN FY 2019-20
• The theme of the Occupational
Health (OH) Week across Reliance
was “Stop Diabetes. Diabetes
Concerns Every Family”
• Monsoon Masti, a sports and fitness
initiative, was held at Reliance Corporate
Park, Navi Mumbai
• The walking challenge, 3 Billion By
Founder’s Day, was launched on
September 16, 2019 with a collective aim
to achieve and log 3 Billion Steps in the
mobile app by the year end
International Yoga Day 2019
was celebrated across Reliance -
Hydrocarbons, Retail, Jio, Network-18,
Foundation and Hospital sites
across the country
•
• A three-day workshop on Heartfulness,
Relaxation, and Meditation was
organised from 24th to 26th of September
• Happy Hour: Every Thursday
‘Yoga & Meditation’ Session was
organised in the campus
Additionally initiatives such as Reliance
Employee and Family Emergency Response
Services (REFERS), Task Based Health Risk
Assessment (TBHRA) and Change Agents
of Safety Health and Environment (CASHE)
continue to provide emergency services,
ensuring occupational safety and promoting
healthier lifestyles for all employees.
SAFETY
Reliance’s Health, Safety and Environment
Policy reflects the importance of
Human value, Safety & Operational
Risk Management Principle and the
Company’s Ambition to be a leader in the
field of management of Health, Safety
and Environment. To achieve safety and
operational excellence, and to continuously
improve the quality of Operating activities,
Operating Management System (OMS) has
been implemented across organisation.
The OMS defines a set of operating
requirements and outlines a systematic way
for businesses to deliver them. The OMS
framework spells out “What” is expected
and also provides “How” to meet these
expectations in the form of practices,
processes and procedures.
Risk management is at the heart of the
OMS and implementation of standardised
Risk Management process has brought in
enhanced risk understanding right from
Board to the Asset facing employees.
An engrained process of learning from
incident supports the identification of
risk and barriers.
To provide necessary governance,
documentation and HSE assurance, a
fully equipped and well-qualified HSE and
Process Safety organisation is in place at
all locations. Safety and Operational Risk
(S&OR) function is in place at the Corporate
to bring in technical expertise and to give
independent assurance. S&OR facilitates
aligning the requirements of OMS with the
Global standards like OSHA, API, NFPA.
R-Swasthya - 3 billion by Founder’s Day.
Cumulatively achieved 3.2 billion steps and
beat the target.
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SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Human Capital and People Connect
MISSION KURUKSHETRA (MK)
MK aims at democratising creativity and
innovation by empowering everyone
to innovate. It is a digital platform via
which all ideas are submitted, brought
to logical conclusion and executed for
impact. Through MK, employees put
creative problem-solving into practice
and reskill themselves in ideation. MK was
relaunched in a new avatar in 2019 with the
following features:
Collaborative
All ideas are visible to all
stakeholders, leading to greater
synergy, collaboration and
employee engagement
Social
Gamification and social engagement
increase participation leading to cross-
functional collaboration
New-age
Modular, flexible and configurable
platform with new-age user interfaces
and AI-based idea evaluation tools
Objective
Generate more business value,
improve ideation quality and increase
collaboration and employee engagement.
“I would like to take this opportunity
to invite you to wholeheartedly
participate in this innovation movement
at Reliance. With your innovative
ideas and the new and upgraded
MK, Reliance will undoubtedly be
on the path to becoming the most
innovative company in the world!”
Chairman Sh. Mukesh D.
Ambani, MK relaunch
In response, around 500 ideas were
submitted on day 1 and 1000+ ideas within
first week. MK is now a treasure trove
of more than 29,000 employee ideas
that have a combined potential to create
significant value for the organisation.
50th LEAP Chairman and Dr. Mashelkar
Reliance has implemented a “Three lines of Defense” approach to keep an independent
check on the operating and maintenance activities. To support this initiative S&OR has
rolled out the assurance process and conducted planned assurance at Terminals and
Petrochemical business.
Fostering on the founder Chairman’s vision of ‘Ushering in a digital revolution to create a
magical lifestyle’, the HSE digital tools for OMS, Risk management, Incident management,
Change Management and Competency development are being continuously upgraded to
align business requirements and global standards.
INNOVATION
Innovation in Reliance is sharply focused on ‘Integrated innovation-led exponential growth’.
Reliance develops and deploys relevant programmes leveraging digital technology and
harnessing expertise aimed at creating value and a culture of innovation.
JIO LEAP
Jio LEAP was born with the aim of providing people at Reliance access to global thought and
innovation leaders through interactive sessions. Since inception, 50 Jio LEAP events have
been organised, including starring 3 Nobel Laureates, 2 Olympians and 19 CEOs. It is their
purpose, passion, and perseverance that gets translated into inspiration.
The 50th Jio LEAP session featured a special fireside chat between Dr. RA Mashelkar and
Sh. Mukesh D Ambani, attended by 500 leaders. Sh. Mukesh D Ambani expounded on
Reliance’s role in creating a prosperous India and laid out the vision, values and forward
path for the next decade.
Key Messages from Chairman
Sh. Mukesh Ambani on 50th LEAP
“Embrace the future with boldness and empower successive
generations to take more risks, to do things that nobody has
done, and to innovate.”
“Adaptability is key – we cannot control situations, but we can
adapt to them faster than anybody else.”
“It is important to learn, unlearn and relearn – it makes you
clear-headed.”
RIL has developed a set of policies, codes,
and guidelines to govern its directors,
senior executives, officers, all employees
and third parties, including suppliers and
business partners. The Company takes into
account global standards and endeavours
to comply with all global norms on ethical
conduct of business and human rights,
including the principles outlined in the
United Nations’ Universal Declaration
of Human Rights.
Employees and other stakeholders are
required to report actual or suspected
violations of applicable laws and regulations
and the Code of Conduct.
As part of new employee on-boarding into
Reliance, an extensive induction session is
conducted covering essence of the Code of
Conduct and related guidelines. To ensure
continued awareness about the prevalent
policies and guidelines, every employee
must undergo the annual mandatory
training on ‘Code of Conduct’ and
‘Creating a Respectful Workplace’. As part
of annual appraisal cycle, all employees
submit a mandatory self-declaration of
understanding and adherence of the
Reliance Code of Conduct.
An Ethics and Compliance Task Force
(ECTF) comprising the Reliance Group’s
Executive Director, 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 Code.
The whistle-blower can make a protected
disclosure either to the ECTF or directly to
the Audit committee via email, telephone or
through a letter.
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 complaints 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. There is also a
mandatory learning program in place on
“Creating a Respectful Workplace” for all
employees. 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.
During the reporting period, there were
no cases of child labour, forced labour,
involuntary labour, sexual harassment and
discriminatory employment.
FREEDOM OF ASSOCIATION
At various sites, Reliance has registered
employee unions and associations.
Employees are encouraged 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.
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 transformation team
specifically focused on strategically driving
key people-focused transformational
initiatives across Reliance along with
adoption of progressive HR policies.
The function is managed through a
mature Human Resources – Governance,
Integration and Assurance process in place
with periodic reviews across various teams
in the organisation.
RIA Lifetime award Sanjay Mashruwala
RELIANCE INNOVATION
AWARDS (RIA)
Reliance Innovation Awards recognise
the innovation spirit of Reliance – to set
quantum goals, be bolder than others,
persevere and make the impossible
possible. The infinity symbol depicts
Reliance’s infinite aspirations, infinite
innovation, and infinite growth. In 2019,
about 1,000 applications and nominations
were received of which 43 people were
recognised across three award categories:
Game Changer Award - given to the most
innovative, high impact projects in Reliance.
Pathbreaker Award - given to innovation
leaders who demonstrate outstanding
leadership and innovation through a
portfolio of innovation projects that create
significant value
Lifetime Innovation Leadership Award
– recognises a senior leader who
demonstrates long-term commitment to the
cause of innovation at Reliance.
ETHICS & HUMAN RIGHTS
Reliance’s Code of Conduct provides the
guidance and support needed to conduct
business ethically and to comply with
the relevant laws. Failure to follow this
Code could result in disciplinary action
and even dismissal. The Code lays down
responsibility and expectations from
employees and stakeholders. It also
ensures that all employees, suppliers and
vendors are required to respect human
rights of not only each other, but also of the
communities in which they operate.
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SUSTAINABLE GROWTH AT RELIANCE
The Integrated Approach:
Manufactured Capital and Product Stewardship
KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
UN’s Sustainable
Development Goals
Material Topics
• Raw material security
• Managing systemic risks from
technology disruptions
• Data privacy and security
• Digital inclusion
• Asset utilisation and
reliable operations
• Security and asset protection
Other frameworks referenced
NVG-SEE and NGRBC
National Missions
• Make in India
• Digital India
• Atal Innovation Mission
Reliance is leading India’s technological quantum leap and
ushering in the fourth industrial revolution across its Retail, Digital
Services and Hydrocarbon businesses.
Our next generation digital infrastructure, unprecedented scale of
network and key partnerships differentiate our each business and
deliver compelling customer experiences. 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. The
Jamnagar supersite is one of the world’s most complex and highly
integrated site that has re-defined refining and petrochemicals
integration. From developing infrastructure to reach the masses
and service consumers in remotest areas to rolling out new or
customised products and services like Project Eve or Fiber-to-the-
home to serve all segments, Reliance has truly made global local.
Technological advances such as remote sensing and predictive
analysis using AI, ML, IIoT, robotic process and automation are
well integrated within our operations to ensure asset health is
maintained and performance is optimised. Such solutions are not
only integrated within our refinery and plants but are also offered
seamlessly through the physical and digital ecosystem.
Reliance is also making significant contributions to enhancing
the circularity of the Indian economy, while we continue to
build up significant technological capabilities to deliver world
class operational performance. From developing bioplastics to
recycling plastics for road constructions, Reliance is creating more
opportunities to generate wealth from waste. From developing
products which have the lowest carbon footprint in their segment
to advanced material that present sustainable alternatives to
conventional materials, Reliance has demonstrated Product
Stewardship and Innovation.
Reliance, has been instrumental in creating significant societal
value by leveraging its manufacturing strengths. During the
pandemic when the country needed such strength the most,
Reliance ramped up the production of PPEs to manufacture 1 lakh
PPEs per day in very short time.
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FY 2019-20
FY 2018-19
FY 2019-20
FY 2018-19
Total asset value (` in crore)
11,65,915
Grades of crude processed
78
64
10,02,406
9.2
37.7
Petrochemical production (MMT)
38.4
Gross refining margin (US$/bbl)
8.9
No. of stores operated (Retail)
10,415
11,784
Coverage area (Retail) (million sq.ft.)
22
28.7
No. of fuel outlets operated
1,398
Jio’s all IP 4G LTE network coverage at
present is greater than 2G coverage in
India and is fast approaching its target
of 99% population coverage
1,372
Complexity index of Jamnagar supersite
has increased from earlier 12.7 to 21.1
Refinery utilisation levels during the
year remained above 5 year average
Reliance Retail has unprecedented reach
covering length and breadth of
the country
Jio’s world class infrastructure
(industry leading capacity and best in
class technology) provided seamless
and uninterrupted services despite
the significant traffic surge during the
lockdown
Enabling and creating a digital
ecosystem for India
Jio network carries over 4.5 Exabytes
per month of industry data traffic of
more than 7.5 Exabytes per month
Refinery throughput of 70.6 MMT
Over 640 million footfall
in Retail stores
VALUE CREATION
Through its manufacturing excellence, Reliance has created value for all its stakeholders. The timeline below shows a glimpse of
Reliance’s effort towards manufacturing excellence:
2010-11
RIL entered into into partnerships in
shale gas in North America
2011-12
RIL formed a strategic alliance with BP
to enhance its deepwater exploration
and development capabilities
2012-13
Refineries achieved record crude
processing of 68.5 MMT
2013-14
Reliance Retail achieved the
milestone of over 10 million square
feet of retail space during the year
2014-15
RIL started India’s largest Styrene
Butadiene Rubber (SBR) plant at
Hazira
RIL made 2 significant discoveries in
KG and Cauvery basins
2019-20
Started production of specialty rubber
(Butyl Rubber - IIR) (RSEPL)
Facebook Inc. announced the signing of
binding agreements for an investment
of ` 43,574 crore by Facebook into Jio
Platforms, with an equity stake of 9.99%
RIL, along with BP, successfully bid for
ultra-deepwater Block KG-UDWHP-2018/1
2018-19
RIL commissioned the world’s first
ever Refinery Off-Gas Cracker
(ROGC) complex of 1.5 MMTPA
capacity
RIL became the second largest PX
producer in the world
2017-18
RIL constructed the world’s largest
petcoke gasification unit at Jamnagar
2016-17
RIL commissioned new Paraxylene
(PX) capacity at Jamnagar
RIL scaled up CBM production
crossing 1 mmscmd
RIL commenced commercial
production from CBM fields at
Sohagpur
2015-16
Reliance Retail launched ‘LYF’, its own
brand of 4G LTE smartphones and 4K
television
Reliance Retail launched
www.ajio.com, the curated fashion
and lifestyle e-commerce platform
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RELIANCE’s GOALS FOR SUSTAINABLE DEVELOPMENT
Goals
Highlights of FY 2019-20
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 operation parameters for
safe, reliable and efficient operations.
• Extracting value from bottom of barrel production
• IIoT device with real-time edge analytics to
assess the health of equipment
• VR based technologies and Operator Training Simulator
(OTS) deployed to train for start-up, shutdown and
handle plant and process safety related emergencies
PRODUCT STEWARDSHIP
Develop a roadmap for each product in its portfolio
based on continuous engagement with customers
to understand their current and future requirements
and be a pace-setter in adapting new and
emerging technologies.
• Digital ecosystem with apps like JioMeet within Jio eEducation
platform, and reaching mirco-communities with Jio POS-Lite
• Debottlenecking Coker unit and commissioning High Purity
Iso-Butylene (HPIB) unit, to create high value products
• Launched Composites and Carbon Fibre products like RelX
and RELInforce; and continue the circularity commitment
with Sustainouva fabric range using R|Elan, and ReRoute
• Commissioned OT Booster Compressor to increase field life and
Gas evacuation pipeline - deepest subsea installation in India
SMART MANUFACTURING
Reliance promotes 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. These technologies became
more relevant to operate RIL’s manufacturing operations when all are continuing to fight
against COVID-19.
RIL’S STRATEGIES FOR SMART MANUFACTURING
Technologies
Artificial intellenge and
machine learning
Big data analytics
Maximise yield throughput by
predicting process/operation upset
leveraging
Process
IIoT and Edge
computing
Robotics
Historical and real time process data
Maximise use of asset by predicting
failure leveraging
Asset
maintenance
Computer Vision
Asset and process, data inspection data
Mobile application
AR VR
3D printing
136
Workplace
safety
Eliminate incidence, reduce exposure
of humane to unwanted situation
leveraging
Operation, asset data, operational
safety data
Reliance’s smart manufacturing adoption
strategy includes:
• Deploying/developing smart sensors and
control elements, including edge devices
• No touch, remote operation, paperless
manufacturing and workflow execution,
including robotics
• Predictive and perspective analytics
for predicting performance and alert
equipment failure
Technologies that leverage smart
manufacturing include:
1. Deployment of AI and ML based
solutions for prediction of process health
to take corrective/preventive actions for
any future performance deterioration,
to develop the best operating zone for
sustained optimum operations
2. Deployment of computer vision
technology to eliminate product give
away in rubber production
3. Deployment of IoT based solution
for remote monitoring of pressure
test during shutdowns and remote
monitoring of processes in difficult-to-
access locations
4. Deployment of a sensor-based system to analyse the health of a battery in the
substation to identify residual life of each cell in a battery bank
5. Development of robotic solutions for deployment in manufacturing, in collaboration with
premier institutes in India
6. Real-time assessment of plant instrumentation, automation assets and performance
insights to improve process stability and minimise operating cost
7. Co-development of an IIoT device with real-time edge analytics to assess the health
of rotary equipment and provide the root cause of health deterioration, enabling early
event detection and reduction in maintenance cost
8. Designed in-house and manufactured a robotic solution for remotely raking in/out of the
electrical breaker in the substation, eliminating any arc flash incidence, which can be
rolled out across multiple sites
The application of acquired skilled sets of analytical platforms, computer vision, ML,
AI algorithms and programming languages, with domain expertise, aids in prescribing
solutions. The Operator Training Simulator (OTS) deployed at critical plants is used
extensively to improve competency, to train for start-up, shutdown and handle plant and
process safety related emergencies. Reliance is also experimenting with Virtual Reality (VR)
based technology for employee training.
Reliance is developing an ecosystem to integrate smart manufacturing solutions along
with technology partners with the support of infrastructure available through Jio network
and Jio cloud. With this initiative, Reliance is not only optimising its own process, but
also contributing towards the inclusion of other Small and Medium Enterprises (SMEs)
in the journey.
Enterprise applications
Industry 4.0 Smart Factory
Improve operating margin by
Predict and Eliminate
• Process upset
• Equipment failure
• Safety incidence
Advanced analytics/big data
Artificial intelligence, predictive,
perspective, analytics, big data
Paperless manufacturing
Mobile application in shop floor
system driven
No touch operation
Robotics automation
Connected sensors
IIoT device and smart instrument
Shop floor: operation, maintenance, quality safety
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Replacement of Lithium
ion batteries instead of
the traditional Valve-
Regulated Lead-Acid
(VRLA) batteries
Reduction of DG set Run-Hours in the
event of SEB power failure through
use of fast charging / discharging
type Lithium Ion (Li-Ion) Batteries
instead of the traditional VRLA
Batteries for fast charging.
For reliable operation of Tower sites,
continuous power supply is required.
Normally received from the Electricity
supply company. In the event of failure
of SEB supply, back-up power is
taken from batteries. In case of power
interruption for longer periods, DG
power is used.
Details: Lithium Ion batteries occupy
less space due to higher power
density. By deploying Li-Ion Batteries,
which can re-charge at fast rate of
33% (as against 10% for VRLA Battery)
DG Run-Hours has been drastically
reduced. This has been done by cyclic
charging / discharging of Batteries.
The watt efficiency (95%) of Li-ion is
more than VRLA Batteries (85%).
Moreover, VRLA Battery need
controlled environment whereas
Li-Ion Batteries can be operated in
ambient conditions. Hence, they are
more suitable for tower application.
Installation of Li-Ion Batteries
resulted in reduction of DG
Run-Hours leading to reduction
in energy consumption and
emissions.
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SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Manufactured Capital and Product Stewardship
DIGITAL TRANSFORMATION
As part of its Digital Transformation, RIL has set out the objective of developing the
underlying manufacturing digital capabilities and technologies as part of its digital
enterprise, manufacturing and operational platforms. This has included leveraging the Jio
network, the Hydrocarbons cloud and datalake infrastructure.
The adoption of innovative digital technologies has focused on driving strategic business
objectives and outcomes. With these platforms, RIL is now providing near real-time
business insights to its end users, allowing the various stakeholders to take fast and
effective business decisions through a common and intuitive User Interface (UI). RIL’s
digitisation strategy has therefore, focused on two main themes:
ELEMENTS OF RIL SECURED CONNECTED SYSTEM
RIL has developed and effectively implemented a real-time analytics system known as RIL
Secured Connected System (RILSCS). By virtue of this system, the Company can analyse the
operations on an instantaneous basis for predicting future challenges. The elements of
RILSCS are described in the diagram below:
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AUGMENTED CUSTOMER EXPERIENCE
To enhance the customer experience, RIL has rolled out the Augmented Customer
Experience (ACE) programme with the objective of enhancing customer experience based
on the voice of customers, improving supply chain processes and enabling value-added
services. This initiative integrates business planning through advanced analytics, better
supply planning and execution, to drive higher customer service levels.
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 2019-20 are listed below:
During the year, Reliance Retail launched
SMART Point, a one-stop multi-purpose
store concept, offering grocery, pharmacy
and assisted e-commerce. The entire
process from concept to execution took less
than 45 days during which 18 stores were
launched across Thane, Navi Mumbai and
Kalyan in Maharashtra.
DIGITAL SERVICES
• Launched JioPOS Lite, creating a
completely new pool of entrepreneurs
who can serve their micro-communities
as Jio channel partners, for recharges or
on-boarding on Jio platform
• Launched JioMeet app in these testing
times of global pandemic, connecting
families, enabling corporate meetings and
collaboration and helping educational
institutions to continue with their
academic calendar.
MEDIA
• On election counting day, Network18
News deployed ‘Magic Wall’, an analytical
tool that uses artificial intelligence
for election programming and result
presentation. Powered by research
done at the constituency level by
the extensive News18 network, this
innovation enabled the breakdown of
LIVE results based on parameters like
demographics, industrial growth, farmer
distress, millennial influence, the impact of
government schemes, etc.
REFINING & MARKETING
RIL has focused on debottlenecking,
capacity enhancement, energy
conservation and product quality
improvement to enhance its competitive
strengths. Some efforts inter alia include:
• Debottlenecking of the Coker unit
augmented the Company’s capacity to
convert residue to high-value distillates
• Coke Drums replacement one of the
most difficult project undertaken globally.
Unique strategy to safely replace drums.
• Commissioning of a High Purity
Isobutylene (HPIB) unit for
C4 value addition
RETAIL
Reliance Retail launched a new store concept ‘Trends Junior’, a destination store for kids aged
0-14 years and offers apparel, footwear and accessories in a differentiated store environment.
• In its’ endeavour towards continuous
improvement in its’ energy performance,
Jamnagar Refinery has implemented quite
138
a few schemes, translating into 63 Gcal/hr
energy savings. Further, Energy Real Time
Optimiser (ERTO) has been implemented
to ensure optimised energy performance
of integrated operation of Refinery-
Petchem-Gasifier sites at Jamnagar
in successfully extending the field life by
almost five years
• Gas evacuation pipeline, the deepest in
India, has been laid in ~2,000 m water
depth and tied to Risers at CRP.
PETROCHEMICALS
Polymers
• Recyclable pallets for material handling
and transportation have been developed
using Linear Low Density Polyethylene
(LLDPE) roto-molding grades. The existing
pallets available in the market contain PU
foam to achieve stiffness, which make
it difficult for recycling as separation of
PE and PU is technically difficult. This
also helps to reduce the pallet weight
by 7-10%, which in turn reduces the
transportation cost.
• Anti-sea erosion works with PP geobags
and road stabilisation works with PP
biaxial geogrids commenced in India.
Polyesters
• Launched Sustainouva™ – an
eco-friendly and sustainable range of
fabrics manufactured using R|Elan™
GreenGold, in partnership with India’s
leading fashion and textile manufacturer
and retailer, Raymond Group
Composites
Reliance Composite Solutions using
composites and carbon fibre under
its trademark RelX™ has successfully
developed the following:
• Introduced RELinforce™, a range of
carbon and glass fibre reinforced polymer
systems for structural strengthening
and protection of the structural
members and pipes
Other Brands
RIL formally launched the waste plastic
to roads initiative titled ReRoute™. The
Company has piloted around 40 km of road
in Nagothane, Maharashtra and 1 km inside
RIL-RCP campus at Ghansoli, Navi Mumbai
OIL AND GAS EXPLORATION AND
PRODUCTION
• Commissioned OT Booster Compressor
to reduce back pressure and side-track
activities in the shut-in wells, to sustain
production. These efforts by RIL, are first
in the world for deepwater fields, helped
CIRCULAR DESIGN CHALLENGE 2.0
R|Elan™ ‘Fashion For Earth’ partnered with
the United Nations Environment Program
(UNEP) for the 2nd edition of India’s biggest
sustainable fashion award - circular design
challenge — a design philosophy that
promotes reusing and recycling of raw
materials and end products with a view to
reduce the environmental footprint of Indian
fashion industry.
400 qualified registrations were received
from 40 cities across the country. 86 final
applications were shortlisted and further
distilled to five qualifiers by the Final
Selection Group (FSG).
The finalists comprised a diverse group of
active and environment conscious young
individuals. Gauri Gopal, the founder
of Skilled Samaritan, impressed jury by
showing how her label employed the
rope-making skills of rural women to create
commercial products. Varsha Rani Solanki,
the founder of Off-grain, intrigued everyone
by showing how her label converted waste
products to beautiful, fashionable products.
Esha Agarwal explained how her label
Chambray & Co. helped consume less
material and upskilled local artisans. Susmit
Chempodil and Zuzanaa Gombosova,
co-founders of ‘Malai’, innovated a
biocomposite material from coconut waste
that decomposes within 90-120 days.
Finally, Mallika Reddy from Cancelled Plans,
took waste materials from industrial process
destined for oceans and landfills and made
fashionable goods.
Susmith Chempodil and Zuzanaa
Gombosova were declared as the winners
of Circular Design Challenge 2.0 by the jury.
They were presented the grand prize of
`20 lakh to support them scale their
innovation to a marketable collection
and make a discernible impact to waste
reduction and environment betterment.
They would also have a chance to
showcase their scaled-up collection at the
next Lakme Fashion Week in August 2020.
GLOBAL CORPORATE SECURITY
Global Corporate Security (GCS) is a distinct
function of Reliance mandated to secure,
safeguard and de-risk India’s largest private
sector company. Round-the-clock, GCS
officers are engaged 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 and
intelligence agencies 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 proactively engages with public &
private enterprises, academia, think-tanks
and sovereign security forces to develop
security doctrines, industry best practices
and policy frameworks. This helps to
address the entire spectrum of existing
and evolving strategic and operational
security risks.
In response to the COVID-19 crisis, GCS
teams across the enterprise, covering
all the locations, handled the crisis in an
exemplary manner on a 24/7 basis. Their
contribution has been critical in saving lives,
providing security and protection of assets
and ensuring business continuity in the
most optimal manner.
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Management Discussion and Analysis (contd)
SUSTAINABLE GROWTH AT RELIANCE
The Integrated Approach:
Intellectual Capital and Innovation
At Reliance, we have the unique opportunity to develop path-
breaking technologies that operate at the fusion of physical,
digital and biological worlds. Several of our breakthrough
technologies are first to the world and are catering to growth of
existing and future businesses.
Each of our business segments started with the vision to solve
a societal challenge. With our passion, determination and will
to innovate, we have ushered in a new era of revolution - a
phygital future for our country. Our people, our technologies,
our research, our intellectual capital, have enabled us to create
next-gen products and platforms.
Our R&D teams are working on Bio-innovations to use our
expertise in algae, mixed with AI and ML to increase agricultural
productivity. We see value in waste and have demonstrated that
by converting waste plastic to roads, developing bio-plastics
and through processes such as catalytic gasification. While
R&D is working on growth opportunities for business, it is also
looking to solve for themes such as climate action or affordable
and clean energy. Our technology developments have also won
us many national and international awards and accolades.
In these unprecedented times, all our strengths from R&D are
being utilised to help our nation fight this pandemic. These
innovations range from our synthetic biology team working to
identify novel ways to detect, protect and treat the COVID-19
infected patients, to our ability to design and fabricate
simple ventilator prototypes for mass production using 3D
printing skills, make PPEs (Personal Protective Equipment)
with our range of polymer products, using our knowledge of
synthetic chemistry to make low cost sanitizers or utilising our
understanding in adsorbents to make enriched oxygen from air.
UN’s Sustainable
Development Goals
Material Topics
•
Innovation and Technology
Other frameworks referenced
WBCSD
National Missions
• Atal Innovation Mission
• Make in India
• National Policy on Biofuels
• National Environmental Policy
KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
FY 2019-20
FY 2018-19
FY 2019-20
FY 2018-19
Number of patents granted
(Reliance)
140
Reliance Jio is future ready for
technologies: 5G and beyond
120
Product Stewardship across
all segments
164
Patent applications filed (Reliance)
127
*Total Expenditure incurred
on R&D (` in crore)
2,377
2,538
Researchers/scientists/
technologist/engineers
900+
Headquarters R&D Centre
with total area
1,25,000 SQ. FT.
Collaborations with global
universities for R&D
*Standalone
VALUE CREATION
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:
• Retail: Omni-channel solutions and
digital commerce platforms
• Jio: Digital ecosystem and
5G ready network
• Media: Multi-platform and multilingual
• R&M: Euro VI capable refinery
• Petrochemical: Advanced
materials and composites
• E&P: Digitally enabled deep water
capabilities
Through its innovation and R&D initiatives, Reliance has contributed towards nation’s intellectual capital as well as created products and
services that deliver positive value to its customers. A snapshot, of that is below;
Revenue (` in crore)
Capital (` in crore)
140
140
141
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewNaye India Ka Naya Josh2011-122010-112012-132013-142014-152015-162016-172017-182018-192019-207388107221,0266311,2861,091380408498628798593855203654314335RIL developed technology that increases the efficacy of sulphur as a fertiliser.RIL successfully developed fully indigenous ‘Polymer Electrolyte Membrane’ (PEM) technology.RIL implemented New Product Development Initiative (NPDI).RIL became first in the world to successfully extract benzene from diolefin and gasoline products.Reliance Jio filed 54 patents in a year.RIL implemented Intellectual Property Management System (IPMS).RIL Jamnagar became Euro VI capable refinery.Reliance Jio developed 5G and beyond capability.RIL developed ISROSENE – a speciality fuel for space travel application.RIL prototyped first fully indigenous HT-PEM fuel cell system.RIL has established tools of synthetic biology, in combination of digital technologies.RIL has developed a catalytic process that can convert plastic waste to stable oil.RIL set up coking research facility for upgrading refinery residue.RIL’s state-of-the-art Navi Mumbai R&D facility became fully functional.1,5001,200900600300001,5001,2009006003001,2441,294RIL developed more environmentally friendly processes for Purified Terepthalic Acid (PTA) manufacture.RIL developed microbial and photocatalytic processes for effluent treatment which avoided hazardous waste discharge.RIL developed additives for in-house utilisation in cracker coking passivation.RIL introduced Recron® Duratarp for waterproof fabrics.RIL developed Recron 3S which replaces carcinogenic asbestos in roofing sheets.RIL developed PP Nonwoven crop cover.
SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Intellectual Capital and Innovation
RELIANCE’s GOALS FOR SUSTAINABLE DEVELOPMENT
Goals
Highlights of FY 2019-20
PRODUCT STEWARDSHIP
Develop roadmap 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.
• AJIO’s Just-In-Time inventory model and offline-
to-online innovative capabilities
• Integrated connectivity solutions (apps), fiber-to-the-home
solutions (infrastructure) and next-generation technology
capabilities integrated seamlessly within business
• Petcoke gasification process - converting waste to value
• Bio-CBM process converting unminable coal to methane
• R&D supporting in Prevention, Detection and Treatment of COVID-19
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.
• Fuel Cells for–distributed energy supply
built and tested for Jio towers
• Algae to Oil plant to create renewable bio-crude
• Catalytic gasification – converting waste
(petcoke) to high value (syngas)
• RCAT-HTL converts any organic waste into renewable crude
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.
• CO2 capturing piloted from refinery and power plant flue gas
• Bioplastic development for packaging and agriculture
• Circular economy push by recycling waste Polyester and
PET to create high value fabric, chemicals and products
• Advances in synthetic biology and advanced biomaterials
• Ionic liquids replacing hazardous catalyst
R&T ENABLERS
R & T
ENABLERS
Capability to support existing
businesses
Chemical synthesis
Reactor design
Process development
Catalysts and adsorbents
Polymer science
RESEARCH &
TECHNOLOGY (R&T)
VISION
R&T will develop innovative products,
processes and catalysts to increase
and sustain the profitability and
growth of Reliance.
Role of R&T in Reliance’s journey of value
creation for its stakeholders:
• Shareholder value: R&T will build an
IP portfolio to provide a long-term
competitive advantage
• Customer Value: R&T will support all
technologies to create customer value with
short term as well as long term projects
• Societal Value:
• R&T will help businesses to reach
all segments of society through
products developed for masses
• R&T will support universities through
sponsored research programmes that
help create jobs in Reliance and in
educational institutions across India
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Capabilities for new
businesses
Synthetic Biology
Genomics
Bioinformatics
Nano-technology
Alternate energy
New materials
Green chemistry
Digital ecosystem
THEME
Bio Innovations
RIL-Biology
RIL – biology platform has more than
75 scientists and engineers hired from
world’s top-class research institutes and
universities. Integration of deep-learning
in biology, especially synthetic biology
has enabled the team with next-gen
technologies and processes to work on
some of the important global challenges.
Synthetic Biology led innovation
for next-gen biomaterials and
food ingredients
Synthetic biology is widely envisioned as
an epitome of innovation led growth. With
disciplines in genetic engineering, omics,
big-data analytics, and robotics, among
others, the synthetic biology division
embraces, state-of-the-art technologies
to achieve highest productivity outcomes
for novel products creating new business
opportunities.
RIL R&D has pioneered zero to one
innovation to develop most productive,
robust and scalable year-round outdoor
algal cultivation (continuously for more
than three years). Thus, RIL’s algae
cultivation and downstream cutting-edge
technology can economically transform
conventional production practices, be it
traditional agriculture or modern synthetic
bio-chemistry approaches to develop
new materials, food ingredients in a more
sustainable way.
Over the last few years RIL has rapidly
established tools of synthetic biology,
on algal technology platform, further
combining Reliance’s strong capabilities in
digital technologies, it is poised to create
tangible opportunities in food, materials,
agriculture and health.
Functional competencies - to
enable next-gen products
The integration of omics through AI
and ML algorithms equipped with big-
data processing has helped streamline
RIL’s genome engineering efforts
using Clustered Regularly Interspaced
Short Palindromic Repeats (CRISPR) –
technology to improve photosynthetic
efficiency, biomass productivity, and
many other complex traits. To rapidly
evaluate outcomes and establish proof-of-
concept (POC) for RIL’s synthetic biology
endeavours, a high-throughput screening
pipeline, indoor and outdoor cultivation
evaluation, and Quality Assurance/ Quality
Control (QA/ QC) monitoring capability
have been established. To further achieve
optimised algae productivity targets, RIL
utilised end-to-end process engineering
from process scale-up, photo bioreactor
designs, large scale product extraction,
robotics, and high-throughput analytics
platforms to develop food and feed
ingredients from algae-biomass.
Food and feed:
With its algae based synthetic biology
platform, RIL developed alternatives for
conventional food and feed ingredients that
have the lowest carbon footprint of current-
day conventional crop.
products will be introduced initially in the
high-end specialised market catering to bio-
medical, wound care and personal care.
Integration of algal knowledge
with AI and ML tools to boost
agricultural productivity:
RIL’s R&D envisages to use its core
strength in photosynthesis research, AI-ML
platform, CRISPR, genomics and a state-
of-the-art biology laboratory to accelerate
innovations in modern agriculture. It seeks
to deploy smart applications of CRISPR
technologies, microbiome, and Genome-
Wide-Association-Studies (GWAS) using
sequenced genomes of crops, and genome
sequencing projects of non-conventional/
orphan crops to specifically address food
and nutrition gaps of the country. RIL’s R&D
efforts in modern agricultural hybridisation
and selection has delivered high-yielding
elite seeds under rain-fed conditions for
Jatropha as biofuels.
Fish Feed
Advanced biomaterials
Using synthetic biology-enabled
technologies, RIL plans to provide
sustainable biomaterials and polymers
which can be produced in an algae platform
using CO2. A commercialisation plan for
biomaterials (such as nanocellulose, non-
animal leather, spider silk, among others)
and their composites is underway. These
Algal pond at Gagwa
Bio Coal Bed Methane (Bio-CBM)
– converting unminable coal to
methane
RIL’s Bio-CBM process is targeted at
converting unminable coal to methane,
a fuel that can improve the country’s
energy security. Methane thus produced
not only meets energy need, but also
reduces GHG emissions.
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SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Intellectual Capital and Innovation
THEME
Industry, Innovation and
Infrastructure
Functional elastomer technology
development
New technology has been developed for
functionalisation of elastomer through
an emulsion polymerisation process.
Reactive silica and graphite composites
prepared with this material have superior
rolling resistance and longer life reducing
auto emissions.
High performance elastomeric
products and applications
New class of ionic cross-linked
elastomeric material has been developed.
The presence of ionic groups provides
these materials excellent adhesion
to rubber, metal, plastic and wood
substrates. New range of adhesives have
been developed for automobile and other
household applications.
Polymer composites for
lightweight vehicle and body
armour
RIL has developed disentangled high
molecular weight polyethylene (DPE) that
has been used to prepare high strength
tapes and fibre that is used in body and
vehicle armour.
Carbon fibres
Carbon fibre composites can be used
to make light-weight automotive body
parts of electric vehicles. However, they
need to be developed at a cost-effective
price point. RIL R&D is developing
technologies for carbon fibres using
various raw materials and different
process approaches.
Graphene composites
RIL R&D is developing novel intercalating
agents for exfoliating graphite into layered
graphene using industrially practiced
polymer/elastomer processing operations.
Niche composites
RIL’s R&D and Business Development have
developed thermoset composite solutions
that can be coated on surfaces to provide
adequate protection from mild to harsh
corrosive environments.
Internally Plasticised PVC (IP-PVC)
for specialised applications
RIL has developed internally plasticised-
PVC (IP-PVC) that does not need any
external plasticizers. IP-PVC retains its
inherent properties, has better extrudability,
transparency and does not deteriorate over
the life cycle of the product.
High performance elastomeric
products
New elastomeric materials have been
developed by RIL based on endo-rich
bromobutyl rubber. These elastomeric
ionomers have self-healing characteristics
and potential applications for high
performance pharmaceutical stopper, high
impact polyolefin materials for automobile
and elastomeric fibres.
Ionic liquids replacing
hydrofluoric acid
RIL R&D has developed a non-hazardous
ionic liquid-based catalyst and process
technology to replace hazardous
hydrofluoric acid catalyst for manufacturing
of Linear Alkyl Benzenes (LAB).
THEME
Affordable and
Clean Energy
THEME
THEME
Oil to Chemicals
Refining and
Petrochemicals
Algae to Oil (A2O)
RIL R&D has been operating a large pilot
facility at Gagwa near Jamnagar, where
it converts sunlight, CO2 and sea water
to renewable bio-crude. R&D has been
running these ponds continuously without
crashes for more than three years, a world
record. Promise of algae has been known
for some time; however, no one in the
world has been able to cultivate algae
without crashes and significant downtime.
R&D has developed all components of
the technology value chain. This will be a
critical technology for converting CO2 to
useful products to combat climate change.
Catalytic gasification –
converting waste to value
RIL has developed a catalyst that can
gasify feed like pet-coke, coal, biomass,
among others at temperatures below
750⁰C. The catalytic process can be
used to convert high-ash Indian coal
to high-value syngas. The process is
demonstrated at pilot scale. The reaction
mechanism of catalytic gasification and
subsequent results are published in
the ‘Energy and Fuels’ journal, by the
American Chemical Society. Work is
underway to scale-up the technology.
Fuel Cells for distributed
energy supply
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 is presently
being tested on simulated Jio towers. In
the long-term fuel cells will be supplied
by renewable hydrogen and replace
current methanol reforming to produce
in-situ hydrogen.
Bimodal HDPE Technology
Development for Blow Molding
and Pipe Grades HDPE - A slurry
ethylene polymerisation process has been
developed using dual reactors to produce
bimodal pipe and blow molding grade
HDPE. The high-performance supported
titanium catalyst is jointly developed with
supplier to tune the catalyst specific for
RIL’s commercial application.
Metallocene LLDPE (mLLDPE)
products and catalyst technology-
Metallocene based LLDPE product is
in greater demand due to excellent
mechanical properties compared to
conventional LLDPE product. Today
these catalysts are imported. R&D has
developed metallocene catalysts at bench
scale for gas phase mLLDPE production
for packaging film applications. The RIL
produced mLLDPE resin has good balance
of mechanical, thermal, morphological and
rheological properties.
Catalyst for linear high productive
Polybutadiene Rubber (PBR)
products- Novel cobalt-based catalyst
has been developed for linear PBR grade.
This R&D developed catalyst and process
has higher cis content equivalent to
expensive imported Neodymium Butadiene
Rubber (Nd-BR) catalyst and resulting
product.
Multizone Catalytic
Cracking (MCC)
For transforming fuel refinery to
high value petrochemicals, R&D has
developed a new Multizone Catalytic
Cracking (MCC) process, which converts
a wide range of distressed hydrocarbon
feedstock, and or neat crude to high
value propylene, ethylene and BTX
(Benzene, Toluene and Xylene) without
producing any fuels. This platform
technology is a foundation for RIL’s Oil
to Chemicals (O2C) plan. A 5 KBPSD
MCC demonstration plant design is
in progress. RIL has also developed
a unique technology to separate the
aromatics BTX component from olefinic
MCC gasoline and recycle the raffinate
stream to MCC riser for maximising
petrochemicals production.
Di-sulfide oil (DSOO) utilised at ROGC
Low Cost Anti-Coking and
Sulfiding Additive – import
substitution of specialty additive
RIL has developed and started
commercial production of low-cost anti-
coking and sulfiding additive (Di-sulfide
oil- DSO) from refinery waste stream.
This is a cost-effective alternative to
imported commercial additive Di-methyl
Di-sulphide (DMDS) for steam cracker
and hydro-processing applications. This
indigenous product is being utilised
in the world’s largest refinery off-gas
cracker (ROGC) unit of RIL Jamnagar
manufacturing complex. The application is
being extended to RIL’s hydro-processing
units. RIL has received several 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. Several external
companies have shown interest in RIL’s
product and it is exploring licensing
opportunity for Indian refineries and
petrochemical cracker units, as per the
directions of Ministry of Petroleum and
Natural Gas (MOP&NG).
In-house FCC Catalyst
Development
R&D has developed in-house inexpensive
selective catalyst for Fluid Catalytic
Cracking Unit (FCCU), to improve
conversion and propylene yield. This
catalyst is scaled-up and performance
being demonstrated at pilot plant scale.
This catalyst will be toll manufactured for
commercial trials in Reliance FCC units.
Specialty PP Products and
Catalyst Development for High
Performance Materials – R&D has
developed catalysts for high performance
ultra-high molecular weight specialty
polypropylene.
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THEME
Circular Economy
Waste Plastics to Road
New solutions for sustainable use of these
plastic products is the need of the hour. RIL
R&D has helped the Sustainability Solutions
team in RIL-Petchem business in launching
ReRouteTM, the only product of its kind in
the market today that can be used to make
bituminous concrete road surfacing using
the ‘dry mix’ process.
Catalytic pyrolysis of mixed plastic
to stable oil
RIL has developed a catalytic process
that can convert plastic waste including
multi-layer plastics without requiring
feed segregation or clean up to stable
oil that can be processed in refineries or
petrochemical plants to produce plastics
again, thus closing the loop. This process
gives higher yield of very stable oil.
Overall circularity is highest for the RIL
THEME
Climate Action
Direct conversion of CO2 to
Dimethyl Carbonate (DMC) – for
CO2 monetisation
R&D has developed a mixed oxide
stable catalyst to directly convert
methanol and CO2 to a high value Di-
methyl carbonate (DMC) product used
as solvent and specialty chemical.
Currently, DMC production is done by an
expensive hazardous phosgene process.
If inexpensive DMC is available, it’s high
value polycarbonates could be produced.
Furthermore, DMC could also be blended
in transportation fuels as an oxygenate
additive instead of ethanol or methanol.
This year RIL has achieved substantial
improvement in DMC yield and methanol
146
process compared to several competing
technologies.
Bioplastic Development
At RIL, a new biodegradable plastic is being
developed for packaging and agricultural
applications. The developed polymer has
high resilience and toughness and can be
used in flexible as well as rigid packaging,
agriculture mulch films, among others.
This can also be compounded with various
fillers for ease of downstream processing
and enhancing product properties.
Waste to Wealth
Reliance Catalytic Hydrothermal
Liquefaction technology (RCAT-HTL)
converts any biomass and organic waste
into ‘drop-in’ renewable crude that can be
processed to produce transportation fuels.
Conventional refinery processes such as
Hydrotreatment have been successfully
used to upgrade the crude from RCAT HTL
to transportation fuels. These upgraded
fuels replicate the specifications of
conventional transportation fuels, such as
diesel, jet fuel, among others.
conversion by modifying the catalyst and
by optimising the process conditions. The
process and the catalyst have successfully
been scaled up to a pilot stage with
continuous operation. The long term
stability studies of the catalyst have also
been completed. In addition, RIL has also
developed the solid heterogeneous catalyst
for the regeneration of the dehydrating
agent used in this novel DMC process.
Process for CO2 capturing from
refinery and power plant flue gas
R&D has developed and demonstrated at
a pilot scale a sorbent based circulating
fluidised bed process for concentrating CO2
from dilute refinery and power plant flue
gases. This process is protected by several
patents in India and abroad. The estimated
cost of CO2 capture is less than 18 US$/
tonne as compared to 35 US$/ tonne for
amine-based process.
RIL has developed a low temperature, low-
cost hybrid process to extract vanadium
and nickel from gasifier slag. After
demonstration of a successful pilot, efforts
are being made to scale-up this process.
PET-based fabric recycling
To recycle PET in all its forms, RIL is
targeting to separate PET from mixed fabric
blends and convert it back to fibres and
to fabric. This will be an important step
towards fostering the circular economy
and addressing the environmental burden
caused by the discarded PET based fabrics.
Recycling of Waste Polyester
RIL is developing an in-house technology
to convert waste recyclable polyester
material into valuable chemicals to make
polyurethane with improved physical
properties. It will help to strengthen circular
economy and reduce environmental impact.
Benzene Recovery
Unit
This venture targets the reduction
of the amount of Benzene and
other hazardous air pollutants in the
gasoline pool – a cause for health and
environmental concerns. This novel
processing operation represents the
only extractive distillation unit setup
in the world that can process FCC
gasoline heart cut fraction for the
dual purpose of producing high purity
benzene and benzene lean gasoline.
Significantly lower particulate
emissions as the gasoline processed
will contain 30% less benzene.
R&T PRODUCT STEWARDSHIP
Retail
AJIO onboarded over 200 brands on
JIT (Just-in-time) inventory model which
reduced time to market for new styles. AJIO
continues to strengthen its O2O (offline-
to-online) capabilities. ‘Drop at Store with
Cash Refund’ and ‘Pick at Store’ is now
live in Bengaluru. Endless aisle kiosks
across 750 Trends stores contributed 33%
to O2O business.
Digital Services
1. Reliance Jio is in the process of
developing Fiber To The Home (FTTH)
services to connect to a potential
customer base of 50 million homes
and 15 million enterprises. Its key
differentiators are intracity fiber network,
last mile execution, seamless customer
experience along with attractive
bundling of digital content and smart
home IoT solutions. Jio has connected
approximately one million homes with
JioFiber services till March 2020.
2. With technology capability in its core
DNA, Jio has invested in technologies
ranging across Big Data, Mixed Reality,
Block Chain, Edge Compute, Internet of
Things (IoT), Computer Vision, Secure
Identity, Artificial Intelligence/Machine
Learning, Super Compute, Robotics and
Infrastructure as a Service/Platform as a
Service (SaaS).
3. Jio has launched JioMeet, an integrated
connectivity solution that allows Work,
Learn and Health from home.
Media and Entertainment:
1. Launch of MoneyControl Pro, Voot
Select and Voot Kids: Pay-propositions
were created in flagship properties in
News and Entertainment, so as to allow
premium customers to benefit from high-
end content on an ad-free basis.
Refining and Marketing:
1. Reliance’s petcoke gasification project
(largest in the world) has achieved
steady-state operation, after a steep
ramp-up demonstrating 100% design
petcoke as feed and 120 days of
continuous gasifier operation.
Petrochemicals
1. ReRouteTM: ReRouteTM is an initiative
to use waste plastic in the construction
of roads to increase the use of end-
of-life plastics.
2. Launch of Raymond® Sustainouva
powered by R|Elan™ GreenGold: RIL
and Raymond Group, India’s leading
fashion and textile manufacturer and
retailer, launched Sustainouva™ – an
eco-friendly and sustainable range of
fabrics manufactured by using R|Elan™
GreenGold. The Sustainouva™ range
redeemed around 1 million PET bottles
from landfills.
3. RELX™ COMPOSITES: Reliance
Composite Solutions (RCS) under
the trade mark RELX™ commissioned
Unsaturated Polyester resin plant
during the year.
Oil & Gas Exploration and
Production
1. Bio CBM: Bio CBM technology increases
the recovery from CBM fields. It is
used in areas where coal is devoid of
methane or conventional CBM extraction
is economically infeasible. Currently,
this technology is in a nascent stage.
Reliance is leveraging its infrastructure
(advanced laboratories), requisite
diverse inter-disciplinary technical
skills, CBM production expertise, CBM
fields and knowledge of regulatory
requirements to give impetus to the
Bio-CBM research.
RIL scientist working on synthetic biology
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which along with the gene specific
primers could be used for identification
of SARS-Cov 2 in swab samples. In
order to accelerate development, the
team has drafted a manuscript and
submitted to global data center/ public
at large. Several other manuscripts
are under development and will be
made open source.
c. Ventilator Prototypes: In order to fast
track ventilator in-house development,
the team is using a concept developed in
Italy, which involves CPAP machine with
3-D printed Charlotte valve and special
snorkelling mask. R&T 3-D printed the
valves and prototypes are getting ready
for testing at RIL hospitals.
d. Portable Pressure Swing Adsorption
(PSA) units for Oxygen Enrichment of
Air: Utilising the Company’s expertise in
adsorption technology, R&D can design
oxygen generators capable of producing
5 to 7 litre per minute oxygen with purity
of 90 to 95%. There is a possibility that
demand for on-site oxygen may become
severe and availability of portable
oxygen generators will be useful. The
main components for making such
units include adsorbent vessels and
adsorbent, air compressor, solenoid
valves, among others. The team will
work with PSA oxygen suppliers in India,
to accelerate commercialisation.
EFFORTS TO FIGHT COVID-19
R&D teams are trying various ways to help
RIL and the nation to fight this pandemic.
Broadly the R&D efforts can be classified
into three categories: Prevention -
Detection - Treatment
PREVENTION:
a. Indigenous Sanitizer Production: R&D
has given recipe and process to produce
large quantity sanitizer (2 Ton) meeting
WHO specification at 20% of market
cost using the raw materials available
in the refinery.
b. Nano coated Masks, PPE: R&D is
working with various CSIR labs to certify
Nexar polymer that has shown ability to
destroy lipid layer of various viruses and
bacteria, thus in-situ killing them. Once
done this polymer coated propylene
PPE’s will be provided to front line
medical staff fighting COVID-19.
C OVID-1
9
DETECTION:
a. Detect and protect: A dozen of
scientists from synthetic biology
group of R&D are working to facilitate
large scale screening of samples to
combat COVID-19 infection. The team
is identifying instruments (Real Time –
Polymerase Chain Reaction Ribo Nucleic
Acid (RT – PCR, RNA) extractor, among
others) to build infrastructure to do
20,000 assay per day.
b. Designing novel and low-cost kits for
COVID-19 detection: Bioinformatics
team of R&D designed peptides that
can be used for development of
immunological detection kit to facilitate
1 million detection to begin with at an
affordable cost.
148
Synthetic Biology R&D team is working
with CSIR-IIIM to develop high-
throughput assay for detection of
COVID-19 using RT – LAMP technology.
This technology has tremendous
potential for early detection of infection
without any cost intensive infrastructure
(RT – PCR). Population screening using
super-high-throughput technologies are
needed to screen spread of the virus in
slums and amongst migrant-workers.
The teams are also working with next-
gen sequencing companies in Mumbai
to develop method and protocols for
community analysis. The team has
also proposed multi-layer imaging
technologies for COVID-19 community
screening based on facial temperature
profile and coarse voice symptoms using
an Intelligent API.
TREATMENT:
a. Proposal on treatment for COVID-19:
Biology R&D has submitted proposal
for application of Niclosamide as a
potential drug for COVID-19. The team
has also proposed the potential use
of Astaxanthin for Cytokine Storm
Syndrome (CSS) therapy in severe
COVID-19 patients and is working in
collaboration with other organisations
on testing several anti-viral molecules
against SARS-Cov2.
b. Building knowledge base and sharing
idea to global scientific communities
to fight against COVID-19: Molecular
biologists and bioinformatics scientist
of R&D have conducted detailed
studies on the genome of SARS-Cov 2
available in public databases. The team
has perceived a PCR based work-flow
R&D EXPENDITURE
Capital
Revenue
Total
(` in crore)
FY 19-20
FY 18-19
FY 17-18
FY 16-17
FY 15-16
1,244
1,294
2,538
1,286
1,091
2,377
1,026
798
1,824
593
855
631
628
1,448
1,259
R&T ENABLERS
Collaboration
Reliance collaborates with high-ranked
universities and institutes such as
University of Helsinki (Finland), Pacific
Northwest National Laboratory, ICGEB
(New Delhi), Ben-Gurion University of the
Negev (Israel), IIP Dehradun, IIT Bombay,
IIT Kharagpur, IIT Chennai, NCL Pune,
Florida State University, University of
Massachusetts Amherst, University of
Delaware, Penn State University, Kansas
State University, IIIM Jammu, Gujrat State
Forensic University, Institute of Chemical
Technology, IEC Frieberg, Germany and
Clemson University among others.
R&D Personnel
Researchers/scientists/ technologists/
engineers: 900+
RIL runs campus recruitment drives to
attract talent from the best universities.
RIL has a pool of scientists and engineers
(900+) from reputed Indian and international
institutes as 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
•
Engineers (IICHE), National Botanical
Research Institute (NBRI) and Fellowship
Criteria - Indian National Academy of
Engineering (FNAE).
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 2019-20, RIL
filed 127 patent applications and 140
patents were granted.
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.
1. 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.
2. Implemented Industry 4.0
Technologies
Emerging digital technologies are
being applied in discovery research.
Capabilities include advanced
data science and analytics, cloud
computing, artificial intelligence,
machine learning, industrial IoT, process
control automation and cyber security.
Reliance has established state-of-
the-art infrastructure and facilities
with high performance computing
clusters for advanced computational
research; scientific big data ecosystem
for laboratory informatics and data
science; Azure cloud computing platform
for scalable computing, storage and
scientific application deployment;
and secured remote access to CSIR
national and university labs for open
collaborative research.
3. 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 scientists a robust platform to
capture and store both structured and
unstructured data as they conduct
experiments or execute laboratory
procedures. The ELN user interface can
be modified by creating experimental
templates. This will allow scientists
to easily enter information as well as
directly capture results from analytical
instruments and barcode systems for
sample lifecycle management.
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 The Indian Institute of Chemical
R&D center, Navi Mumbai campus
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DIGITAL PLATFORMS
The Reliance digital transformation
strategy is reformulating the Company’s
value proposition by integrating products
and digital services that respond to
current and future customer needs.
This has led to the deployment of a
variety of mobile and cloud native
capabilities to create or enhance value
propositions for the businesses and
markets in which Reliance operates.
By the year end, Reliance has fully
operationalised and enabled:
• Several digital services platforms
have gone live to support process
automation, increase business agility
and rapidly innovate new business
and digital products.
• An IT team that has been upskilled to
build, transition, operate and support
both close source and open source
technologies of legacy monolith and
cloud native application portfolios.
• Design thinking, Agile development
and DevSecOps practices and the
use of MVP (minimum viable product)
concepts based on cross functional
teams have been rolled out to drive
continuous improvement capabilities
and deliver new platform capabilities
at scale and at speed.
• A fully cloud native microservices
based architecture that leverages the
best of open source cloud scalable
technologies to enable plug and play
product and service innovations and
drive cost efficiencies at scale.
• To leverage business insights
from sources of structured and
unstructured big data repositories,
enterprise data governance
capabilities have been enabled to
integrate several data lakes which
underpin Smart Manufacturing, IIOT
and many other ML and AI capabilities
and initiatives.
•
Increased collaboration with strategic
vendors to support the transition
of legacy business critical IT
solutions to the cloud.
•
Increased collaborations with
educational institutes across India
to develop the next generation of IT
team with cloud native skills.
• A cloud IT backbone and
infrastructure to support and
transition legacy IT systems to
increasingly digitised business
processes on cloud native digital
platforms but also enable the Group’s
Work from Home requirements.
• A new security architecture that
supports the IT landscape in
transitioning to a fully cloud based
reality that is able to address the
cybersecurity and data privacy
challenges that lie ahead.
Moving to digital services platform
strategy has therefore been a strategic
investment in building integrated,
difficult-to-replicate capabilities that
deliver and sustain Reliance’s long term
strategy in a digital future.
ENABLING THE FOURTH INDUSTRIAL REVOLUTION
Reliance is ushering in the Fourth Industrial Revolution (4IR) within the country. As a leader in the space, Reliance has capitalised on the
megatrends in the digital, phygital and biological sphere: Trends such as use of advanced technologies and equipment, global move from
a physical to a digital economy, advancements in biotech integrated within business, and a circular business model that derives value from
waste. More about how Reliance is enabling the 4IR is given below:
Key Trends
Sr
No
DIGITAL TRENDS
1.
Artificial Intelligence and
Machine Learning
Ability of a machine or a
computer program to learn
from available data and use
algorithms to effectively
perform specific tasks relying
on patterns and inferences
2. Cloud Computing and
Big Data
Large amount of data collected
and stored over time pertaining
to a particular activity or
business
3. Data Analytics
Analysing data to enable
effective decision making
4. Dynamic Simulation
Immersive and real-time
emulation of data for
monitoring situations without
being physically present
5. Connectivity
Capacity for the
interconnection of platforms,
systems, applications and
users
Reliance’s Presence
Facial recognition used to comply with DOT KYC norms while onboarding telecom customers
Haptik using AI for GOI’s official WhatsApp based helpdesk for COVID-19
Embibe: AI based education analytics enabling personalised education for every student for school and
competitive exams
Machli App by Jio: AI bridging the information asymmetry gap for fishermen
EmpXP: Integrated Learning Management and Delivery Platform with AI-enabled
tutor for employees
AI solutions for scrutiny in Letter of Credit and Shipping instructions, improving efficiency
and cycle time in Petchem exports
Machine learning solutions for prediction of process health in manufacturing processes
Jio operates one of the globally largest big-data lakes for telecom
Jio in collaboration with Microsoft will set up data-centers in locations across India, consisting of next-
generation compute, storage and networking capabilities
Established remote data centers for businesses and a Data Lake for Petchem
Good Operating Zone (GoZ) for sustained optimal gasification operation in the refinery, polymer and
petchem plants, using manufacturing Big Data
Analysis of impact of various parameters on freight, aiding decision making in R&M logistics
Customer Credit Risk Management with Credit Scoring for aiding decision making for credit limits and
release in Petchem
Business Performance Management (BPR) dashboards for effective monitoring of the financial
performance against budgets in Petchem
Sankhyasutra Labs revolutionising the world of simulation and scientific computing to improve
operations
Integrated operations centre to overview and monitor entire operation systems with real-time-data and
up to date analysis from well head production to plant utilisation in E&P
Simulation for operator competency improvement and training at several critical plants at RIL
Immersive sessions leveraging VR-based simulations in Spectrum-2019 learning week and piloted VR
based technology for training
Developed a digital twin of a 4000KM pipeline to monitor and predict leakages saving inspection costs
and avoiding downtime in collaboration with GE
Jio is the first network globally to roll out VoLTE at scale and has also provided the option of VoWi-Fi for
calling using internet services
Rolling out one of the largest fibre to home networks globally
Deployed pan India wireless IOT network using NBIoT technology.
Jio’s all-IP data network is future ready to transition to 5G and beyond to serve 99% of the Indian
consumers
Fast approaching its target to cover 99% of Indian population with an all IP 4G LTE network
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Leader
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Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Intellectual Capital and Innovation
Key Trends
Reliance’s Presence
Sr
No
6.
7.
Industrial IoT
Use of smart sensors and
actuators to automate, enhance
and monitor manufacturing and
industrial processes
Blockchain
Distributed ledger to record
transactional data while
ensuring security, transparency,
and decentralisation
8. Cyber Security
Application of technologies
to protect systems, networks,
programs, devices and data
from cyber-attacks
9. Digital Trade
Using digital platforms to
facilitate transaction of goods
and services
PHYGITAL TRENDS
10. Circular Economy
An approach towards
elimination of waste and
continuous use of resources
11. Robotics and Services
Use of machines to perform
repetitive actions or jobs in a
shorter and efficient manner
Co-developed an IIoT device to assess the health of rotary equipment for real-time analytics and root
cause mapping across manufacturing plants to reduce maintenance cost
Sensor based system to analyse health of batteries in substation units
Across businesses, IIoT and robotic process and automation are well integrated within operations to
ensure asset health and optimised performance
Aims to bring transparency in goods transportation through blockchain
RIL and VAKT: Digitising the global commodities trading industry and creating a secure and trusted
ecosystem, powered by blockchain
Smart Contracts for instant matching and settlement processing eliminating intermediaries in payment
channels
Jio has been an active supporter of local storage of critical and sensitive customer data in the interest of
national security and protection of customer privacy
Reliance Retail, only multi- brand retail chain in India to have PCIDSS certification
Many state-of-the-art technology solutions have already been deployed to detect, mitigate and prevent
various cyber threats
“DevSecOps” practice in E&P Platform to maintain and sustain platforms
JioMart: omni-channel experience for consumers to place orders through alternative ways including
App and Whatsapp which will be served by merchant partners allowing 30 million corner stores across
India transact digitally with customers in their neighbourhood
Jio will roll out Mutual fund investment opportunities through the JioMoney platforms thus assisting
financial inclusion
Only Indian company in Alliance to End Plastic Waste contributing to projects like Renew Ganga, The
City Partnerships project and Grameen Creative Lab - Zero Plastic Waste Cities
ReRoute: End-of-life plastic to road project initiatives
Utilisation of bottom-of-the-barrel crude to generate non-conventional energy at state-of-the-art
supersite at Jamnagar
EPR authorisation for e-waste management for Retail
Vapour recovery system at petro-retail outlets
Robotic solution development for deployment in manufacturing in collaboration with premier institute in
India
In-house development of robotic devices to eliminate exposure of people to hazard deployed in
substations across multiple sites
12. Smart Logistics
SkyTran: A Personal Rapid Transit system concept for the future
Use of technological
advancements which enables
stakeholder’s to control the
rising flow of goods
13. Advanced Materials
Materials with exceptional
properties developed through
technological advancements
Reliance Transconnect – digital fleet management for Petroleum retail business unit
Retail’s Omni-Channel and Integrated Value Chain
Mobile SIM based real-time tracking for all sites for monitoring and tracing
Introduced POD digitisation and reverse billing process for supply chain optimisation in petchem
EDI integration for shipping lines for invoicing and settlement processing
Designing novel and low-cost kits for COVID-19 detection by bio-informatics team of R&D
R&D developed process to produce large quantity sanitizer (2 Ton) by using raw material in the refinery
R-Elan, RELinforce, RELx Composites: developed multiple materials with desirable characteristics
Developed 30 MFI high crystalline PP copolymer grade for Injection molding applications
Introduced Disentangled high molecular weight polyethylene used to prepare high strength tapes and fibre
In-house technology development of ISROSENE - a specialty fuel for space applications
Key Trends
Sr
No
14. Aerial Technology
Aerial technologies to aid data
collection and decision making
Reliance’s Presence
3D-Mapping of COVID-19 hotspots by DronaMaps
Collaboration with Asteria Aerospace to develop actionable intelligence on drone based aerial data
15. Nanotechnology
Patented process for synthesis of carbon nanotubes
Development of process aimed
at designing at atomic or
molecular scale
16. Additive Manufacturing
Techniques used to
manufacture 3D objects based
on ‘printing’ successive layers
of materials
17. Energy Transition
Advance energy storage
and transmission solutions to
conserve natural resources
18. Horizontal and Vertical
Integration
Strategies for acquisition
of and partnerships with
businesses to gain competitive
advantage
BIOLOGICAL TRENDS
19. Biotechnology
Uses living processes,
organisms or systems to
manufacture products or
technology intended to
improve the quality of human
life
20. Agri-Tech
The use of technological
innovations in agriculture to
increase its yield, efficiency,
and profitability
21. Genomics
Sequencing and analysis of an
organism's genome, its DNA
3D printed valves and prototypes for ventilators ready for testing at RIL hospitals in COVID-19 pandemic
Organic and biomass Waste-to-Wealth using RCAT HTL to create transportation fuels
Minimisation of using HMUs for hydrogen generation while ensuring reliable supply of Hydrogen from
gasification complex, leading to fuel consumption reduction in HMUs
Developed high yielding Jatropha hybrids for bio-fuel production
Usage of Lithium Ion batteries, HVAC systems and renewable energy sources across sites as energy
efficiency measures by digital services
Collaboration with Facebook and Microsoft to accelerate digital transformation in India
Partnerships with WOMO | Bullfrog, Tiffany and KG to introduce luxury goods and high end services
On completion of Backward Integration, collaborations with GE, BP Chevron and Ensign
Investments in and acquisition of startups like Haptik, Netradyne, Embibe, Skytran, Saavn, EasyGov,
Reverie
Submitted proposal for application of Niclosamide as a potential drug for COVID-19 by Biology R&D
team
The biology R&D team has proposed the usage of Astaxanthin for CSS therapy in severe COVID-19
patients
Developed Novel biomaterials like Nanocellulose, non-animal leather, Spider Silk, among others and is
working with various CSIR labs to certify Nexar polymer
Use of algae photosynthesis to boost crop productivity by connecting photosynthesis with digital
technology
Jio Krishi App for farmers to help make Data-Driven Decisions on the Jio platform
PE grades developed to manufacture nets for paddy stubble bales as an application of Plasticulture
Analysis of thousands of sequenced genomes of crops with AI/ML to accelerate innovations in modern
agriculture and address hunger and nutrition-gap of society
Poised to create tangible opportunities in food, materials, agriculture, and health backed by tools of
synthetic biology, Algal technology platform by RIL’s biology R&D team
In addition to the segments mentioned above, Reliance also nurtures the start-up ecosystem through
JioGenNext Hub, enabling the 4th Industrial Revolution, more information on which can be found
on page 160.
Key
Key
Breakthrough
Leader
Collaboration
Business as usual
Breakthrough
Leader
Collaboration
Business as usual
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SUSTAINABLE GROWTH AT RELIANCE
The Integrated Approach:
Financial Capital and Credit Rating
Reliance is focussed on optimising shareholder return by
maintaining an optimum capital structure, liability profile and
leverage ratio. The current low interest rate environment will
enable Reliance to optimise on its interest cost. All its businesses
generate strong operating cashflows. This year, our annual EBITDA
crossed the `1,00,000 crore mark for the first time. Our consumer
businesses recorded a robust growth on all operating and financial
parameters and they now contribute to 35% of our consolidated
segment EBITDA. Investments in the form of cash and cash
equivalents has served as a liquidity buffer against macro shock
and volatility. With a strong emphasis on risk management, the
Company continues to secure its cash-flow and earnings risks.
Reliance retained its domestic credit ratings of AAA from CRISIL,
CARE and ICRA and investment grade rating for its international
debt from Moody’s as Baa2 and BBB+ from S&P. The ratings are
a testimony to Reliance’s strong balance sheet and the reliable
growth trajectory of its business earnings.
UN’s Sustainable
Development Goals
Material Topics
Economic performance
KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
FY 2019-20
FY 2018-19
FY 2019-20
FY 2018-19
FY 2019-20
FY 2018-19
Capital expenditure (` in crore)
1,32,445
77,444
6,25,212
92,656
39,837
Revenue (` in crore)
6,59,205
EBITDA (` in crore)
1,02,280*
Net profit (` in crore)
44,324*
Debt-Equity ratio
0.74
Return on capital
employed (%) (standalone)
24.9
17.9*
*Before exceptional items
0.74
8,63,996
Market capitalisation (` in crore)
7,05,212
CAGR of market capitalisation
since IPO (%)
31.9
30.4
Domestic credit rating for
long term debt
AAA from CRISIL, CARE and ICRA
Investment grade rating for its
international debt
‘Baa2’ from Moody’s and ‘BBB+’
from S&P
VALUE CREATION
Since its inception, Reliance has been a profit making enterprise with a focus on creating wealth for its investors. Below is the snapshot of
Reliance’s financial performance.
Revenue (` in crore)
Net Worth (` in crore)
*Net Profit (` in crore)
19,272
19,717
20,886
22,548
23,640
29,861
29,833
36,080
39,837
39,880
154
155
* Including minority Interest and after exceptional item
Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewNaye India Ka Naya Josh2010-112011-122012-132013-142014-152015-162016-172017-182018-192019-20 1,82,030 1,98,670 2,18,482 2,89,798 2,31,5563,24,6443,75,7346,25,2126,59,205 4,08,392 4,46,339 3,88,494 2,93,298 4,30,731 2,58,511 3,30,180 1,69,445 3,68,571 1,54,093 2,76,372006,50,0005,20,0003,90,0002,60,0001,30,0006,50,0005,20,0003,90,0002,60,0001,30,000
Management Discussion and Analysis (contd)
SUSTAINABLE GROWTH AT RELIANCE
The Integrated Approach:
Social and Relationship Capital and Value Creation
KEY PERFORMANCE INDICATORS
INPUTS
OUTPUTS
OUTCOMES
FY 2019-20
FY 2018-19
FY 2019-20
FY 2018-19
At Reliance, we strongly believe in creating societal value and
positively impacting the entire value chain. We actively work with
all our stakeholders to contribute to our nation’s digital and local
economy.
Through our businesses, with our partners and suppliers, we
provide a platform for social innovation. With initiatives like
JioGenNext we give start-ups a platform to achieve exponential
growth within the Jio ecosystem. Through newer initiatives we are
further connecting the unconnected, providing a digital platform
for customers to engage with the widely distributed network of
brick-and-mortar stores. Through our retail network we service
every segment of the Indian economy, and through our Oil-to-
Chemicals business we continue to enhance life of every Indian.
In fulfilling our responsibility towards our suppliers, customers
and communities, we enhance our business performance. And
we continue to address the needs of all stakeholders – be it by
transforming villages around our refinery or training farmers on
agricultural productivity through Retail.
UN’s Sustainable
Development Goals
Material Topics
• Community Development
• Customer Satisfaction
• Supply chain management
Other frameworks referenced
IPIECA, UNGC, NVG-SEE, NGRBC,
WBCSD, UNGP, SROI, Social and
Human Capital Protocol
National Missions
• Support to training and
employment programme
(STEP) for women
• Swachh Bharat Abhiyan
• Jal Shakti Abhiyan
12,488
1,16,251
Contribution to National
Exchequer (` in crore)
1,15,461
Employee Benefits (` in crore)
14,075
CSR expenditure (` in crore)
1,022
Total number of startups supported
27
Reliance Foundation has a pan-India
outreach for various community initiatives
904
26
Total villages impacted
through Reliance Foundation
18,000+
37,000+
Total number of Jio
subscribers (million)
387.5
Customer engagement metrics
continue to improve – 11.3 GB/
user/ month and 771 minutes
of VOLTE voice consumption/
user/ month
306.7
Strong relationship with all
stakeholders
Open and timely
communication with
suppliers and contractors
Community outreach of
Reliance Foundation is
more than 3.6 crore
Developmental initiatives
aimed at community
upliftment
Contribution to
nation building
Partnerships for
change with various organisations
`15,371 crore spent
on indigenous suppliers
VALUE CREATION
As a responsible organisation, Reliance has always strived to make positive change in the society. Whether it is contribution to the national
exchequer and the nation’s GDP, CSR spend on community improvement or value created to its employees, RIL has always excelled.
CSR Expenditure (` in crore)
Employee Benefits (` in crore)
156
156
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Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewNaye India Ka Naya Josh2011-122010-112012-132013-142014-152015-162016-172017-182018-192019-2014,0755,1795,5726,2629,5237,40712,4888,3883,3243,9551,0229047626597716743,0002,2501,5007500015,00012,0009,0006,0003,000
SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Social and Relationship Capital and Value Creation
RELIANCE’s GOALS FOR SUSTAINABLE DEVELOPMENT
Key Priorities
Focus Areas
Impact Created
Goals
Highlights of FY 2019-20
CUSTOMER SATISFACTION
Aspire to be the most customer focused company with
the highest customer loyalty.
COMMUNITY DEVELOPMENT
Empowering the underprivileged, enhancing their
access to better amenities and increasing the outreach
of community initiatives to 20 million people by
2030 with the minimum CSR expenditure at 2% of
the net profit.
SUPPLY CHAIN MANAGEMENT
Committed to build and maintain a top-quartile supply
chain with focus on sustainability by collaborating with
suppliers, helping them build their capacity and address
sustainability issues through site-level training.
• Reliance Digital caters to lifecycle needs of the
customer through initiatives such as resQ
• Digital platforms to enhance customer experience
• High user engagement with ~5 hours spent by
each subscriber per day on Jio ecosystem
• Customers can monitor their fleet on the go and access
digital platforms like Vehicle Tracking Solutions (VTS)
• Crossed the target for 2030 and touched lives of 3.6 crore people
• CSR expenditure of ` 1,022 crore
• Support to people distressed by floods
and cyclones across 9 states
• Digital advancements in supply chain through P&C platform
• Reliance Retail worked with farmers to reduced
wastage, increase yields, ensure food security for
country and trust of millions of customers.
• Enhancing India’s digital ecosystem by attracting global
technology partners like Facebook and Microsoft.
SOCIAL AND HUMAN CAPITAL
PROTOCOL
Reliance’s philosophy is focused on making
a meaningful and measurable impact on
the society through job creation, promotion
of new business ideas and community
development, with a focus on creating
necessary conditions for sustainable
livelihood. The Company conducts impact
assessments of its programmes to assess
the quantitative and qualitative social-
economic impacts, respecting the Social
and Human Capital Protocol published by
the Social and Human Capital Coalition.
Reliance has set up a robust framework
for measuring the outcome and impact
of its initiatives on primary beneficiaries.
These assessments have helped the
Company establish 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. These assessments have further
supported RIL in understanding the value
created by its social initiatives in terms
of improved health, education initiatives,
additional income, and improvement in the
quality of life.
Based on the assessments, Reliance
has identified some of the key priorities,
focus areas and impact created from
those initiatives:
Skilling and Employment
CONTRIBUTION TO
THE ECONOMY
Supporting nation’s
growth
• Contribution to the national exchequer `1,15,461 crore
• Capital expenditure `77,444 crore
EMPLOYMENT
Supplier and vendor relations
Customer relations
Start-up incubation and
promotion
• Procured goods and services worth over `15,371 crore
from indigenous suppliers
• More than US$100 million raised in funding by mentored
start-ups, during the year
• Till date 136 startups selected and incubated.
Skilling and Employment
• 29,000 youth were linked to various employment
opportunities across sectors, including retail, banking,
telecom, since inception
RURAL
TRANSFORMATION
Village Association,
Farmer Producer Companies
(FPC’s), Women Thrift Groups
• More than 65,500 hectares of land brought under
improved cultivation, since inception
• 8,500 community based leaders developed,
since inception
• 26 FPOs in 12 states supported to strengthen market
access for over 50,000 farmers, since inception
Water Security
• 9.9+ crore M3 of rainwater harvesting capacity created,
Livelihood Security
Nutrition Security
since inception
• 84 lakh farmers provided services to improve
agricultural livelihood, since inception
• More than 13,000 Reliance Nutrition Gardens (RNGs)
were set up to ensure nutrition security, during the year
HEALTH
Patient Care
• 67 lakh health consultations provided through various
Ecological Security
• 2.2+ crore saplings planted since inception
EDUCATION
Health services at plant sites
Dhirubhai Ambani
Scholarship Programme
(DAS)
health programmes, since inception
• Through Mobile Medical Unit (MMUs) and camps, over
3.94 lakh consultations were provided, during the year
• The DAS programme has provided financial support to
12,776 meritorious students
STAKEHOLDER ENGAGEMENT
At Reliance, stakeholder inclusiveness
has been a fundamental part of its
responsible business practices and is
essential in understanding opinions and
perceptions of people most relevant to
all business segments. The Company
often engages with its stakeholders and,
subsequently, endeavours to meet their
expectations through a proactive approach.
The Company’s approach is to have
transparent dialogues with stakeholders
and communicate to them its story of
value creation.
For further details on the process, please
refer to the Reliance’s Sustainability Report
at www.ril.com.
Dialogue and Stakeholder inclusiveness
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Reliance has identified eight groups of stakeholders as follows:
THE JOURNEY SO FAR
Stakeholder
Functions
Mode(s) of engagement
Frequency of engagement
CUSTOMERS
Business Teams: Retail, Digital services, R&M,
Petrochemicals, Exploration and Production
Meetings, surveys and web
portals
Annually, Monthly, Need based,
real-time
LOCAL
COMMUNITIES
Manufacturing division CSR Teams, Reliance
Foundation, Reliance Foundation Youth Sports
and Reliance Foundation Institution of Education
and Research
Meetings, newsletters,
surveys, field work and
trainings
Annually, Quarterly, Monthly, Need
based
EMPLOYEES
Human Resources
SUPPLIERS
Procurement
Personal / group
interactions, mailers and
trainings
Annually, Quarterly, Monthly, Need
based, Real time, on-Command
Meetings and Annual
Report
Real time, on-Command, need
based
TRADE UNIONS
Industrial Relations
Meetings and camps
NGOs
Manufacturing division CSR Teams, Reliance
Foundation, Reliance Foundation Youth Sports
and Reliance Foundation Institution of Education
and Research
Meetings and
correspondence
Daily, Monthly, quarterly and need
based
Annually, Need based
INVESTORS AND
SHAREHOLDERS
GOVERNMENT AND
REGULATORY
AUTHORITIES
Investor Relations and Secretarial
Meetings, conferences and
correspondence
Annually, Half-yearly, Quarterly
Monthly, Need based
Secretarial and legal
Industry representations,
filings, correspondence and
meetings
Annually, Quarterly, Need based
JIOGENNEXT – EMPOWERING
INDIAN STARTUP ACHIEVE
EXPONENTIAL GROWTH
JioGenNext is a start-up focused division
of Reliance Industries Limited (RIL). Since
its inception in 2014, JioGenNext has
been a strong force in empowering the
Indian start-up ecosystem. The vision of
JioGenNext is to engage with high-calibre
start-ups and exceptional founders and
assist them in achieving exponential growth
through the Jio ecosystem. Over the years,
it has mentored 11 batches comprising
136 startups across multiple verticals, by
helping them scale up, get market access,
and raising capital. Of the 11 batches, three
were theme-based cohorts – two in fintech
space and one driving digital innovation in
the SMB / Enterprise segment.
Focusing on mentoring, JioGenNext has
built an exceptional pool of mentors from
within Reliance, as well as the external
ecosystem. Founders of RIL investee
companies have now become mentors to
early-stage start-ups, with the sense of
paying it forward to the next generation of
entrepreneurs.
Aakrit Vaish of Haptik, Jasminder Singh
Gulati of NowFloats and Harsh Shah of
Fynd, founders of RIL’s alumni start-ups,
have turned mentors for start-ups as part of
JioGenNext. In addition, some of the alumni
start-ups are also investing and acquiring
start-ups in subsequent batches. Last year,
Haptik acquired one of the alumni start-ups,
BuzzOpinion, to enhance capabilities in
voice chatbot solutions.
JioGenNext Jury Day Deliberation
SECTORAL BREAK-UP OF SELECTED STARTUPS
8 AGRITECH
10 MEDIA AND ENTERTAINMENT
11 DIGITAL CONSUMER SERVICES
4 NETWORK
13 RETAIL
4 SOCIAL MEDIA
2 DRONE
12 EDTECH
17 ENTERPRISE SOLUTIONS
32 FINTECH
8 HEALTHTECH AND FITNESS
9 IOT
6 LOGISTICS
9,700+
applications from startups and
aspiring entrepreneurs
136
startups engaged in total
US$100+ MILLION
in funding raised by alumni
during the year
40+
engagements with Reliance
11
cohorts + 2 access days
26
corporate partners
80+
mentors and business leaders
achieve exponential growth. Reliance,
under the leadership of Shri Mukesh
Ambani, has believed in achieving 10x
growth in an affordable and sustainable
manner. At JioGenNext, there is a huge
emphasis on doing well by doing good.
For example, alums, such as Jiny, Clinikk
and BharatAgri, have been able to make
a considerable impact –Jiny provided
digital assistance in vernacular languages
for millions of Internet users; Clinikk in
primary healthcare for families of blue-collar
workers; and BharatAgri by increasing
productivity and profitability of farmer
communities, using digital technologies.
Alums like LogiNext and HeadSpin have
shown global scalability of their business
models, thereby attracting substantial
growth capital.
HIGHLIGHTS FOR FY 2019-20:
JioGenNext and NPCI collaborate
for financial inclusion
JioGenNext, along with National Payments
Corporation of India (NPCI) and Jio
Payments Bank, will collaborate with fintech
start-ups for improving existing payment
related problems and build feasible
solutions based on UPI 2.0 features. The
programme, designed to be a hybrid
version of hackathon and accelerator,
enables selected start-ups to work on pre-
defined use cases in fintech space.
Dr. R.A. Mashelkar,
Board Member at RIL & Chairman of
Reliance Innovation Council
“JioGenNext provides a platform for young
aspirational technopreneurs with ignited
minds to achieve non-linear growth with
unmatched speed, scale and sustainability.”
In the past five years, JioGenNext has
emerged as one of the leading accelerators
in India, assisting start-ups to scale up and
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A focus on startups driving innovation for Small Medium Businesses (SMBs)/ Enterprises
There are over 50 million SMB’s in India which are likely to spend US$14 - US$16 billion this year on digital technologies. Given the
opportunity, start-ups will play an important role in the digitalisation of small and medium businesses (SMBs) in India, enabling them in
areas, such as discoverability, customer engagement and digital transactions. JioGenNext recently concluded a cohort aimed at start-ups
working on solving problems within the Indian SMBs / Enterprise segment.
FY 2019-20 STARTUPS ALUMNI LIST
Name
Description
Name
Description
Batch 9 – Basecamp 1 – (March 2019 – May 2019)
SPOTLIGHT ON ALUMNI
• CabDost (Batch 9):
CabDost provides tax-filing assistance
to cab drivers. This platform offers
vernacular-based support across eight
languages. Through this ecosystem,
CabDost has increased its presence to
14 cities offline, and 100 cities online,
encompassing 22,000 customers. It
aims to set up 10,000 tax filing desks
across the nation and bring over 30
million people who are a part of the
gig economy under the formal tax
paying economy.
Yamuna Sastry,
Co-founder at CabDost
““It was a great opportunity for us at
CabDost to be part of JioGenNext
Accelerator Program. The program was
action driven and founder focused. The
mentorship from the mentor pool consisting
of senior RIL and Jio leaders and other
thought-leaders from the entrepreneurial
ecosystem was extremely useful. The
program enabled us to build a strong
foundation to a scalable business model
and helped us expand to 25 cities. The
continuous engagement and post-program
support has been instrumental in our
growth journey.”
• Rapidor (Batch 10):
Rapidor is a B2B platform focused
• Aerchain (Batch 11):
Aerchain is an end-to-end procurement
on automating order to payment and
collections for SMEs. This platform
(web + mobile app) enables business
owners to track real-time data on
receivables, payment cycles and
customer profitability. The collaboration
with JioGenNext and NPCI has enabled
Rapidor to build payment solutions,
using UPI 2.0 features. Post the
JioGenNext mentorship programme,
the Company has achieved a month-on-
month growth of 27 per cent on orders
processed and is currently processing
` 50 crore worth of transactions each
month. It recently won the Comet
competition held in Mumbai and was
awarded go-to-market (GTM) funding of
US$100,000 by Ingram Micro Cloud, a
company based in Irvine, California, US.
platform for mid and large-sized
enterprises. The platform brings
efficiencies in the procurement
process by automating sourcing, order
management, accounts management
and other manual tasks. Additionally,
Aerchain is driving significant cost
savings to enterprises through an
e-auction portal, thus enabling price
discovery and bringing in transparency
in the procurement process. Guidance
from the Reliance procurement
team / mentors has also helped them
immensely in streamlining and validating
their procurement workflow process.
Thomson Skariah,
Co-founder at Rapidor
“ The fresh perspectives from the curated
sessions clubbed with strong market
connects; has played a key role in helping
us re-strategise and reposition our product.
I immensely value the opportunity we
continue to have, to collaborate not just
with Jio, but also with the other startup
founders in the program.”
Harsha Kadimisetty,
Co-founder at Aerchain
“In addition to the business aspects
such as redefining our GTM strategy for
Enterprise and Midmarket segments in
Indian and global markets, build a range
of connections across the ecosystem; the
program helped us gain a lot of clarity
the kind of culture we want to drive
in our company.”
PORTFOLIO COMPANIES RAISE GROWTH FUNDING
• LogiNext, a company that offers logistic automation solution, raised US$39 million as part of its Series B funding, led by marquee
investors Tiger Global Management and Steadview Capital. LogiNext plans to use this funding to expand its presence beyond India to
New York (US), London (UK) and Sydney (Australia). Previously, the Company raised US$10 million in a Series A round, led by Paytm and
Alibaba in 2016.
• HeadSpin, a company that ensures connected experiences enabled by web, mobile, IoT and 5G, announced a US$60 million Series
C funding round, led by Dell Technologies Capital and ICONIQ Capital, with participation from institutional investors Tiger Global
Management, Kearny Jackson, and Alpha Square Group. The Company, post this funding round, has achieved the status of a unicorn,
valued at US$1.1 billion.
Loktra is a cloud platform to run a modern-day
financial institution
Camcom.ai is a computer vision first AI startup for
automating auto insurance claims
LOKTRA
ZIMYO
Zimyo offers cloud-based HR management
software as a service to companies for
managing their human resources, with a focus
on helping them with payday loans
CABDOST
CabDost offers tax filing and financial
inclusion services for taxi drivers and other
bottom of the pyramid segment
Haqien is an advanced security encryption
solution for securing data in transit using
quantum randomness
HAQIEN
CAMCOM.AI
PAYZELLO
PINGAL
MICROCHIP
PAYMENT
Payzello is a smart banking solution targeting
millennials offering features such as spend
management, money tracking and a physical banking
card for debit, credit and forex transactions
Pingal provides a financial analytics platform for
financial institutions
Microchip Payments offers a voice enabled mobile
app named PayEasy that enables payments in offline
mode.
Jio Access Day (Finnext) – May 2019
Camcom.ai is a computer vision first AI startup
for automating auto insurance claims
Early Salary is an online consumer lending platform for
salaried individuals
EaseBuzz helps business establish an online
presence and manages end to end payments
EARLY SALARY
ESTHENOS
Esthenos provides software solutions for NBFCs
and other financial institutions for automation of lead
generation, origination, underwriting, disbursement
and collections of loan
Fingpay enables digital transactions in rural
India
SMARTCOIN
SmartCoin is a mobile app offering microloans ranging
from `1000 to `50,000 for a tenure of 2 weeks to
3 months at an interest rate of 2.5% per month and
disbursed in 2 hours.
Batch 10 – Basecamp 2 – (August 2019 - October 2019)
Swipez is a common platform for merchants
to manage their billing and collect payments.
Fingage is a B2B platform for online sellers, service
providers and freelancers to manage cash flow, GST
compliance, loans and overdrafts.
PayEasy is voice enabled mobile app that
enables payments in offline mode. The
solution is aimed at rural areas where internet
penetration is minimal.
FINGAGE
APIRIA
Apiria is an online virtual assistant for employees to
automate repetitive activities on HR portal.
CAMCOM.AI
EASE BUZZ
FINGPAY
SWIPEZ
PAYEASY
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SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Social and Relationship Capital and Value Creation
Name
Description
Name
Description
CLOUDNBFC
WEARBERRY
CloudNBFC, a mobile ready automated
lending platform for NBFCs. They enable
small NBFCs to become digitally ready to
serve across all loan segments to compete
with new.
Wearberry is an IoT company focused on
digitising payments in rural and unorganised
economies. It has built RuPay enabled PoS
machines for Rural India, biometric card for
use cases like smart community solutions,
Unified Public Transport Card etc.
MINKSPAY
RAPIDOR
B2B merchant app for FMCG distributors and small
retailers to accept payments digitally through UPI QR
codes with value-added services like digital khata book
and customer engagement tools
B2B software which provides for order management,
product catalog management, inventory management
and online payment facility. Built robo risk assessment
to facilitate activity-based lending to manage working
capital need of SME businesses. P2P lenders and Banks
can choose business in need of working capital to
efficiently lend within their respective risk appetite
BHARAT RIDES
Bharat Rides aims at simplifying urban
mobility by combining journey planning with
various forms of urban transportation.
Batch 11 – Basecamp 3 – (December 2019 – February 2020)
AERCHAIN
Aerchain is a Procure-to-pay platform with
e-auction for price discovery from vendors
Eatabl provides Restaurant digital ordering systems
with personalised recommendations.
EATABL
eShipz offers first mile logistics solution to
ease outbound shipments from warehouses.
IOBOT
TECHNOLOGIES
Iobot Technologies provides an IoT platform digitising
SME business operations, logistics and warehouses
Apiria is an online virtual assistant for employees to
automate repetitive activities on HR portal.
Qzense Labs offers a solution for Grading and
sorting of fresh fruits using handheld scanner.
Shoppre provides consolidated parcel forwarding for
global buyers from India.
SHOPPRE
SpiderG is a book-keeping app with payment
solution for micro-businesses.
Headlights offers IoT enabled cameras enabling
transparency in automotive repairs
HEADLIGHTS
ESHIPZ
QZENSE LABS
SPIDERG
RESPONSIBILITY TOWARDS
SUPPLIERS
The Supplier Code of Conduct, developed
by Reliance, forms the basis of the
Company’s relationship with its suppliers.
Reliance’s belief in its suppliers to attain and
adhere to fundamental values, comply with
labour and human rights, health and safety,
environmental protection, ethical conduct,
business integrity and confidentiality laws
and standards is reflected in its Supplier
Code of Conduct. Accordingly, a rigorous
screening process is undertaken by
Reliance for registration and assessment of
all suppliers. The Company has a system of
rigorous engagement with suppliers during
both pre-award and post-award stages.
Using a well-defined set of assessment
criteria, Reliance continues to drive high
performance from its suppliers. This year,
Reliance has strengthened its commitment
towards the Supplier Code of Conduct by
seeking explicit acceptance from all its
suppliers towards the same.
Reliance is taking utmost care to ensure
integrity, transparency and understanding
of conflict of interest scenarios. The
Company facilitates a range of measures
to comply with the prevalent Anti-Money
Laundering, Anti-Bribery and Prevention of
Corruption Act, as well as its own Supplier
Code of conduct. The Ethics Committee
and compliance functions have built
strong capability to undertake regulatory
compliance checks, counterparty checks,
real-time screening of any suspicious
transactions, and investigations of reported
incidents to strongly curb any unlawful
behaviour by any of its suppliers.
Reliance has procured goods and services
worth over ` 15,371 crore from resident
suppliers. The Company’s continuous
164
investments in mega projects and
operations has led to establishment of
India’s chemical and engineering supplier
base. Presently, leading Indian engineering
companies, raw material companies and
industrial goods companies are Reliance’s
long-term vendor partners. Furthermore,
majority of Reliance’s suppliers and
contractors are India-based. Reliance
supports and encourages its suppliers to
indigenise and to expand their capabilities
and increase their economic value.
SUSTAINABLE SOURCING
Reliance’s sustainable sourcing
emphasises on five strategic areas that
are intended towards social progress,
economic development and reduced
environmental impacts.
The five strategic areas are:
1. Energy Management
2. Environment Responsibility
3. Product Stewardship
4. Occupational Health and Safety
5. Social Institution Building
RIL’s sustainable sourcing ethos focus on
nine key parameters:
1. Green packaging
2. Environment protection
3. Regeneration/Safe disposal
4. Contract worker care
5. Community support
6. Supplier collaboration
7. Make in India and development of India’s
engineering talent
8. Learning through P&C academy
9. Digitally stitched Procure to Pay (P2P)
The adoption of RC-14001, an international
environmental management system, has
led the Company to effectively manage
activities like manufacturing, distribution
and use of chemicals in its products. For
improving human health impacts and for
the protection of environment, Reliance
sources REACH (Registration, Evaluation,
Authorisation and Restriction of Chemicals)
compliant materials, and its requirements
include that Tier-1 suppliers also procure
REACH-compliant materials.
Reliance also reaffirms its commitment
towards developing a vibrant Micro, Small
and Medium Enterprise (MSME) supplier
base by reaching out proactively to its
suppliers to update their entity status with
MSME registration / UAN details in order to
ensure compliance with the MSMED act.
P&C PLATFORM:
P&C Platform aims to deliver a set of P2P
(Procure to Pay) services required to serve
the needs of buying teams, cross-functional
stakeholders and suppliers - delivering the
targeted business objectives. The platform
experience will be provided through many
digital assets such as cognitive assistants,
digital agents, BOTs, prediction machines,
control towers, automated warehousing
and hyper-data analytics on a “Mobile
First” environment. This platform will utilise
an internet scale technology architecture,
set-up an open source and best in
domain technologies.
This platform intends to achieve
unprecedented productivity improvement
– virtually delivering 100% touchless
operations by eliminating all repetitive and
manual tasks. Reliance seeks to develop
a deep knowledge in its buy categories
through the power of Artificial Intelligence,
Machine Learning and Big Data-analytics.
These augmented cognitive abilities will
optimise the Company’s cost base, manage
supply risks and achieve near perfect on-
time performance.
This is an exciting journey to integrate
the P2P cycle and build an agile and lean
procurement function. This platform’s
designs thinking harnesses and creates
large, scalable network of buyers and
suppliers that can interface with each
other on demand. At its full potential, it
can alter the industry cost structure by
enabling externalised innovation. Security,
governance and transactional transparency
will be key tenets in the Platform
Architecture of Working.
In addition, Reliance continues to invest in
and experiment with new and disruptive
digital technologies of 3D printing and IOT
enabled systems of ‘Connected Worker’
and ‘Connected Machines’.
CUSTOMER ENGAGEMENT
RIL continues to improve business
processes and enhance customer
experience. The Company has rolled out
state-of-art new-age fuel dispensers across
the network, empowering customers
to monitor their fleet on the go, offering
the flexibility of 24X7 fund transfer for
loading their fleet account and introduction
of virtual card for enabling quicker
transactions. Reliance’s petrochemicals
business is building digital platforms for
enhanced customer experience through
scalable, agile and predictive business
services, providing suite of services
such as: Vehicle Tracking Solution (VTS),
No touch sales order clearance, Cloud-
based systems for digital settlement of
commercial contracts, eBL and road freight
management etc.
Reliance Retail has the largest customer
franchise of over 125 million registered
customers who patronise all its diverse
store concepts. It will continue to invest
in expanding the existing store network
and enhance core capabilities, including
omni-channel solutions, innovative store
concepts, enhancing store environment for
providing immersive customer experience,
leveraging customer insights through use
of sophisticated tools and much more to
consolidate its market leadership. Reliance
Digital takes care of entire lifecycle needs
of a consumer right from identifying the
need gap, narrowing down the solution,
suggesting product choices, to pre and
post installation support to the customers
through its service arm resQ.
Jio has taken a practical approach to
technology and a platform approach to
bring networks, technology, services and
experience under a single umbrella. This
has made the time to market for Jio’s
solutions the lowest across any technology
firms, allowing it to be nimbler and more
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SUSTAINABLE GROWTH AT RELIANCE: The Integrated Approach: Social and Relationship Capital and Value Creation
responsive to customer and market needs.
Across technologies and customer needs,
Jio endeavours to create scalable and
globally exportable platforms.
‘Avani’ – all women
grocery stores
For stores with a higher footfall
of women customers the right
women leaders and employees
were identified. These women were
equipped with required trainings
to prepare for managerial roles at
stores. Also changed unloading
infrastructure to make it easier for
women associates. With support
from relevant functions, Avani was
launched on International Women’s
Day-8th March’19.
Reduced customer complaints
and attrition, increased customer
footfalls, enhanced brand Image with
better store hygiene and discipline.
Avani Store launched and
operated at major metro locations
of Mumbai, Bengaluru, Pune,
Jaipur, Indore, Bhubaneshwar,
Hyderabad and Ahmedabad.
166
RESPONSIBILITY TOWARDS
COMMUNITIES
DISASTER RESPONSE
RIL is committed in its aim to respond
to all disaster situations wherein human
lives and livelihood are endangered.
The Company promptly assists in the
aftermath of disasters to efficiently and
effectively provide relief and alleviate
human suffering. During FY 2019-20,
Reliance relieved communities distressed
by floods and cyclones across 50 districts
of Andhra Pradesh, Bihar, Gujarat,
Karnataka, Kerala, Punjab, Odisha, Madhya
Pradesh and Maharashtra. For more
details, please refer Report on Corporate
Social Responsibility (https://www.ril.com/
DownloadFiles/CSR201920.pdf)
SPORTS
Reliance encourages sports as a medium to
encourage learning and building leadership
for the children and youth of India. The
sporting initiatives offer a platform to
budding athletes across India to develop
their talents and prowess in multiple sports.
Since inception, Reliance’s sporting
initiatives have reached 2.15 crore
youngsters across the country.
For more details, please refer
Report on Corporate Social
Responsibility (https://www.ril.com/
DownloadFiles/CSR201920.pdf)
COVID-19
Reliance leveraged all of its resources –
human as well as material – to help India
overcome the threat posed by the virus.
With a 24x7, multi-pronged approach,
Reliance quickly mobilised on-the-ground
efforts to ensure the nation wins the battle
against COVID-19.
For more details, please refer COVID-19
response (https://www.ril.com/
DownloadFiles/CSR201920.pdf)
PARTNERSHIPS FOR CHANGE
GOVERNMENT AND OTHER
GLOBAL INSTITUTIONS
RIL is affiliated with numerous business and
industrial organisations namely;
1. The American Chemistry Council (ACC),
2. The Chemicals and Petroleum
Manufacturer’s Association (CPMA),
3. Gulf Petrochemicals and Chemicals
Association (GPCA),
4. Association of Oil and Gas Operators
in India (AOGO),
5. Synthetic and Rayon Export Promotion
Council (SRTEPC),
6. Federation of Indian Petroleum
Industry (FIPI)
BUSINESS PARTNERSHIPS
Refining and Marketing,
Petrochemicals, Exploration and
Production:
Under OALP II Round, RIL along with BP,
successfully bid for ultra-deepwater Block
KG-UDWHP-2018/1, contiguous to RIL’s KG
D6 block for exploration of new play fairway
and resource accretion in catchment areas
that can leverage the existing infrastructure.
During the year, RIL joined hands with
Turkey’s textile behemoth, Kıvanç Tekstil,
which is partnering with Reliance to use
R|Elan™ GreenGold-an innovative sustainable
fabric and market it to leading global apparel
brands who source their requirements from
Turkey to meet the ever-growing demand
of environment - friendly apparels for
consumers across the world. In partnership
with Raymond Group, India’s leading fashion
and textile manufacturer and retailer, RIL
launched Sustainouva™ – an eco-friendly and
sustainable range of fabrics manufactured by
using R|Elan™ GreenGold.
Retail:
Reliance Retail has been establishing long-
standing partnerships with renowned brands
from across the globe. Reliance Brands
acquired the oldest and the iconic British
Toy retailer, Hamleys. The Company has
also announced an iconic joint venture with
Tiffany & Co, an American luxury jeweller
and specialty retailer and WOMO | Bullfrog,
the premium Italian men’s cosmetics brand.
Reliance Brands established an exclusive
partnership with Kurt Geiger to bring the
British footwear and handbags brand to India.
In the home appliance category, Reliance
Retail entered a long-term exclusive brand
licensing agreement with Kelvinator, one of
the most premium American Brand.
Consequent to the partnership between JPL
and Facebook, Reliance Retail and WhatsApp
also entered a commercial partnership
agreement to further accelerate Reliance
Retail’s Digital Commerce business on the
JioMart platform to support small businesses
on WhatsApp. The companies will work
closely to ensure that consumers are able to
access the nearest kiranas who can provide
products and services to their homes
by transacting seamlessly with JioMart
using WhatsApp.
Digital Services:
Jio’s success in building technology
specifically for India and ability to proliferate
across the country has attracted global
technology leaders – Facebook and
Microsoft to forge partnerships with it.
Facebook: In April 2020, RIL, Jio Platforms
Limited and Facebook Inc. announced
the signing of binding agreements for an
investment of ` 43,574 crore (9.99% stake)
by Facebook. This partnership is aimed to
accelerate India’s all-round development,
fulfilling the needs of Indian people and the
Indian economy. The joint focus will be on
India’s 60 million micro, small and medium
businesses, 120 million farmers, 30 million
small merchants and millions of small and
medium enterprises in the informal sector,
in addition to empowering people seeking
various digital services.
Microsoft:Jio and Microsoft Corp. entered
into a strategic long-term partnership to
combine the world-class capabilities of
both companies.This partnership aims
at enhancing the adoption of leading
technologies, such as data analytics, AI,
cognitive services, blockchain, Internet of
Things, and edge computing, to accelerate
GDP growth in India and drive adoption of
next-gen technology solutions at scale.
Jio will leverage the Microsoft Azure
cloud platform to develop innovative
cloud solutions focused on the needs
of Indian businesses. Jio will set up
data centres in locations across India,
consisting of next-generation compute,
storage and networking capabilities, and
Microsoft will deploy its Azure platform in
these data centres.
ACADEMIC PARTNERSHIPS:
Reliance has been working in partnership
with various universities and colleges
across India and the globe to grasp
the attention of new talents and next
generation engineers in the Company.
Some universities in academic collaboration
with Reliance are:
Global – Florida State University;
Massachusetts Institute of Technology;
Universities of Florida state, Washington, St.
Louis Louisiana State, Helsinki, Penn State,
Kansas State; Pacific Northwest National
Laboratory; Ben-Gurion University of the
Negev, Israel; University of Massachusetts
Amherst; Institute for Energy Process
Engineering and Chemical Engineering
(IEC), Frieberg, Germany; Clemson
University; University of Delaware.
Indian – Indian Institute of Science,
Bangalore; Indian Institute of Technology
(IIT) – Mumbai, Delhi, Kharagpur,
Kanpur, Madras; Institute of Chemical
Technology (ICT), Mumbai; Tata Institute
of Fundamental Research (TIFR),
Mumbai; International Centre for Genetic
Engineering and Biotechnology (ICGEB),
New Delhi; Indian Institute of Petroleum
(IIP), Dehradun; National Chemical
Laboratory (NCL), Pune; Indian Institute of
Integrative Medicine (IIIM), Jammu; Gujrat
State Forensic University.
SOCIAL STEWARDSHIP
Reliance’s social stewardship strategy
includes nurturing and communicating
diligently with people and communities
around the manufacturing divisions
and bringing qualitative changes in the
lives of the underprivileged. Jio remains
committed to creating the world’s premier
digital society in India. It will be built on
the transformative power of data, where
connectivity becomes the enabler for
digital platforms, improving lives of
every citizen of the country. Influence
of Reliance’s products, services and
community investment activities on the
society at large is stated in the Human
Capital and People Connect, Natural
Capital and Climate Change, CSR report
and case studies sections of the Report.
Reliance seeks to impact people’s lives
through its CSR initiatives. The Company’s
CSR policy is intended at improving the
lives, living and livelihood for a stronger
and inclusive India. Using the Social and
Human Capital Protocol, the Company has
set up a Monitoring & Evaluation (M&E)
framework that is focused on measuring
the outcome and impact of initiatives. It
institutes baseline values of key pointers
that defines the status of stakeholders at
the commencement of the intervention
and regularly evaluates the status of
stakeholders with reference to the baseline.
Addressing the triple
bottom line by serving
customers, building
business and saving
the planet, one
neighbourhood, one
store and one farmer
at a time
Farm to Table
Ensuring 12-hour delivery from
harvest to availability in store is by
sourcing and supplying carrot, tomato,
cucumber and green leafy vegetables,
fulfilling 50% demand of fruits and
vegetables that are bought by the
Indian modern retail consumer.
Raising farm income
Enhanced farmer income and reduced
wastage as Reliance Retail, on account
of its strong logistics, sources 77%
of fruits and vegetables directly from
farmers eliminating middlemen.
Resource optimisation
Reliance Retail is providing trainings
to farmers in order to help them
get the best and variety of produce
from their land, increase their yield
per hectare, optimise the use
of limited natural resources and
educate them on modern agricultural
practices. 118 such trainings were
executed in FY 2019-20.
Reduced wastage of fruits and
vegetables, significant increase in
yield per hectare, ensuring food
security of country and trust of more
than 10 million customers.
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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.
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.
CORE ELEMENTS OF RECOMMENDED CLIMATE-RELATED FINANCIAL DISCLOSURES
Governance
Strategy
Risk Management
Metric and Targets
1. Analysis and
description of all
business segments
of Reliance
covering strategic
advantages and
competitive strengths
2. Structured materiality
assessment process
in accordance with
the GRI Standards
For more
details please refer:
Management Discussion
and Analysis Page No 26
Business Model
Page No 112
Business Strategy
Page No 33,
49, 65, 75, 85, 99
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 170
1. Reliance has adopted a Three
Lines of Defence 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 Reports.
2. RIL’s manufacturing plants
have been allocated energy
efficiency and renewable
energy targets under the
Perform, Achieve and
Trade & RPO schemes
3. RIL is committed to reduce
the carbon intensity
of its energy mix
For more details please refer:
Natural Capital and Climate
Change Page No 114
Reliance’s Sustainability Reporting
Journey: Reliance Sustainable
Development Goals Page No 169
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
and innovative products.
RIL’s approach to circularity is
embedded within operations
including ROGC and gasification
operations at Jamnagar
3. Changing the nature of doing
business via new models such
as B2B2C and creating “Value
out of Waste” with Integrated
collection and processing units
For more details please refer:
Risk and Governance
Page No 170
RELIANCE’s SUSTAINABILITY REPORTING JOURNEY
RELIANCE’s SUSTAINABILITY
REPORTING JOURNEY
Reliance has been testifying
its sustainability journey since
FY 2004-05 through annually publishing
its sustainability report based on the
Global Reporting Initiative’s (GRI) reporting
guidelines. Reliance was among the
primary companies that implemented the
G4 guidelines and later the GRI Standards.
Reports published until FY 2013-14 have
been GRI checked with an ‘A+’ application
level. The Sustainability Report for
FY 2018-19 was prepared in accordance
with the “Comprehensive” option of the
new Standards (including the Oil and Gas
sector disclosures). As per the reasonable
assurance requirements of the ISAE 3000
standard and Type II-High level assurance,
the reports are externally assured, using
AA1000AS standards. Reliance is also
associated with World Business Council of
Sustainable Development (WBCSD) and
Global Reporting Initiative (GRI). WBCSD’s
“Reporting matters” 2015 and 2017 have
recognised Reliance’s sustainability report
as a leading example of the best practices.
The Report respects 17 global and national
frameworks which include:
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)
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) National Missions
17) Transition Pathway initiative (TPI)
As per Reasonable Assurance requirements
of the ISAE 3000 (Revised) Assurance
Standard, the Report has been externally
assured by KPMG India for chosen
sustainability related disclosures in the
report. Please refer Page No 182.
Sustainability is decisive to the delivery
of the Group’s strategy as a fundamental
strategic focus area and is incorporated
past all regions of business. The scale of
sustainability reporting was protracted to
Reliance Retail and Digital Services since
FY 2017-18. Till then the scope of reporting
was limited to RIL and Reliance Foundation.
To distinguish and prioritise the critical
sustainability topics, set KPIs and targets
for further development, Reliance
conducts a formal materiality assessment
in correspondence with GRI Standards.
The Sustainability council advises on
development measures and actions
plans in the monthly review of KPIs and
management approach for classified
material topics. Furthermore, an annual
review is conducted by the Board-level CSR
and Governance committee.
MATERIALITY ASSESSMENT
Reliance conducts materiality assessment
that includes the practice of distinguishing
and evaluating several economic,
environmental and social matters
that could influence its establishment
and stakeholders and arrange them
into potential material topics. The
classification of material concerns has been
fundamentally aligned to the Company’s
risk management framework and its
strategic approach established across
the four areas: Strategic and Commercial
risks; Safety and Operations; Compliance
and Control; and Financial risks. Reliance
regularly intends to develop solid and
enduring interactions with its stakeholders
by means of organised discussions. For
more information on Materiality refer to the
Sustainability Report.
Capital and Material Topics
Natural Capital and
Climate Change
• Managing Environmental Impacts
• Carbon Abatement and Offsetting
• Energy Efficiency of Operations
• Ecosystems and Biodiversity
• Renewable and Alternative Energy
• Water Management
• Waste Management
Human Capital and
People Connect
Innovation
• Talent Attraction and Retention
•
• Health and Safety
• Employee Diversity
• Labour Management
Intellectual Capital
and Innovation
•
Innovation and Technology
Manufactured Capital
and Product Stewardship
• Raw material security
• Security and asset protection
• Asset Utilisation and Reliable Operations
• Digital Inclusion
• Managing Systemic Risks from
Technology Disruptions
• Data Privacy and Security
Financial Capital
and Credit Rating
• Economic Performance
Social and Relationship Capital
and Value Creation
• Supply Chain Management
• Customer Satisfaction
• Community Development
168
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Nikhil R.
Meswani
Hital R.
Meswani
Harish
Shah
Laxmidas
V. Merchant
P.M.S.
Prasad
Srikanth
Venkatachari
K. R. Raja
Reliance Group’s Enterprise Risk Management
framework with its consistent and systematic
approach for identifying and managing risk, both
at the strategic and operational levels enabled
your organisation to continue on its growth path.
Deep culture of Risk Management that the
organisation has achieved over the past years,
based on clear accountabilities of risk and control
and continuous control monitoring enabled by
technology across the three Lines of Defense
and backed by ongoing management processes
including oversight by Board of Directors has
enabled Reliance to mitigate risks including the
risk triggered by the black swan event –
the COVID-19.
ENTERPRISE RISK MANAGEMENT
Reliance Risk Management Framework
was stress tested by the black swan
event and the outcomes are encouraging.
Over a number of years, Reliance has
matured its Risk Management Framework
which identifies, manages, monitor and
reports both, the key risks and also the
newly emerged risks - that can impact
achievement of its strategic objectives.
Reliance’s Risk Management Framework
is founded on sound organisation design
principles and is enabled by effective
use of technology. The Company’s risk
management is customised for business
segments and functions and has three
layered organisational structure to enable
effective management and governance of
key risks and emerging risks.
Reliance’s Risk Management Framework
is designed to avoid incidents and
maximise business outcomes by enabling
the management to:
• Understand the risk environment and
assess the potential exposure.
• Manage overall potential exposure and
determine risk mitigation strategies.
• Monitor the effectiveness of the
risk management.
• Enhance controls and improve
wherever necessary.
• Report across the management chain
all the way up to the Board on a
periodic basis.
The Risk Management Framework covers
risk management activities at three levels:
1. Day-to-day Risk Management – this
includes identification and mitigation of
risks by the management and staff at our
entities, assets and functions.
This is executed as an embedded
component in the Operating
Management System, Financial
Management System and People
Management System.
2. Business and Strategic Risk
Management – this is executed by
business, function and Group leadership.
It also results in integration of risks
with key business processes such
as strategy, planning, performance
management, resource allocation and
project appraisal.
3. Oversight and Governance – the Board,
Executive Committees, Group and
functional leadership provide oversight
to the identification and management
of the most significant risks and are
also responsible for improving the
Risk Management Framework and
ensuring compliance.
170
The organisation structure at Reliance
specific to risk management is fortified with
three Lines of Defense (LOD) and three
layers of governance. The company has
implemented a three LOD model who are
collectively responsible to exercise risk
management activities. They are as follows:
• The Business / Process Managers
• The Risk Management Function
• The Internal Audit and Management
Assurance Function
The Board provides oversight
through various risk and executive
committees listed below:
1. Board and its committees:
• Risk Management Committee
• Audit Committee
• Stakeholder Relationship Committee
• CSR and Governance Committee
• Finance Committee
• HR, Nomination and
Remuneration Committee
2. Executive Committees:
• Group Operational Risk Committee
• Group Financial Risk Committee
• Group Audit and Disclosure Committee
• Group Compliance Committee
• Group People Committee
3. Business Risk and Assurance
Committees (BRAC) which meet on a
monthly basis for Business and Strategic
Risk Management.
4. Business and Functional Leaders:
Functional assurance and
monitoring an on-going basis and
weekly LOD meetings.
Leveraging Technology for Risk
Management and Assurance
Reliance leverages technological
advancements to support the Risk
Management Framework and it has
significantly matured across all 3 major
business segments. New businesses
also adopt leading risk management
technologies, processes and the
experience available in the Group to
manage the risks better. Reliance uses a
Group level Management System (RMS),
thus creating a common risk language to
facilitate risk awareness across all in the
organisation. A robust ERP system, data
analytics capabilities and Governance, Risk,
Compliance and Audit (GRCA) tools are
used for risk management process.
The key risks discussed below, separately or in combination, could have a material adverse effect on the implementation of our strategy,
our business, financial performance, results of operations, cash flows, liquidity, prospects, shareholder value and returns and reputation.
RISK AND RESPONSE:
1) STRATEGIC AND COMMERCIAL RISKS
Commodity prices and markets:
Risk: Companies are experiencing significant demand
destruction due to the cessation of business activities on
account of lockdown due to COVID-19.
Further, external market conditions, especially, prices of
crude oil, natural gas and downstream products have a direct
impact on Reliance’s financial performance. These prices 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, and
political instability including geopolitical risks, economic
conditions and Government pricing policy of petroleum
products among others.
Cybersecurity risk
Risk: COVID-19 has forced organisations across the board to
embrace practices such as social distancing, remote working
and increase the adoption of new technologies. These factors
have created an ideal situation for cyber criminals to attack
IT infrastructure and launch a range of hacking strategies like
malware, ransomware, phishing emails among others.
Risk Response: Reliance exports its products to diverse geographical locations
so that the risk of non-evacuation is mitigated with minimal adverse effect.
Since Reliance operates an integrated hydrocarbon business, some of these
risks are offset by gains in other parts of the Group’s integrated hydrocarbon
business.
The risk of non-availability of crude and feedstock is actively managed by
sourcing crude from multiple geographies (Asia, the Middle East, West Africa,
Latin/ South America, North America and North Africa) using short-term and
long-term purchase contracts and locking prices.
In order to hedge the exposures arising from commodity price fluctuations,
Reliance has a robust Commodity Risk Management Policy and Framework that
ensures the risk remains within manageable levels.
Risk Response: Reliance has strengthened and continues to strengthen its
capabilities to defend itself against existing and emerging cyber security
threats like phishing attacks, DDOS attacks and malware, combining detection
tools with cyber threat intelligence to protect the systems.
It uses Continuous Improvement Programs which ensures that digital
transformation takes into consideration Next Generation Cyber Security
Architecture which is based on Defense-in-depth (DiD) strategy having
enhanced prevention, detection and correction capabilities to mitigate
cybersecurity threats at every layer of the IT landscape.
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Cybersecurity risk (Contd.)
Further, Reliance continues to focus on large scale digital
transformation and hence it also exposes it to increased
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 have
a serious impact on business. This impact could include 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, reputational damage as well as revenue loss.
Data Privacy Risk
Risk: The Government introduced the Personal Data Protection
Bill, 2019, in the Parliament, which would create the first cross-
sectoral legal framework for data protection in India. While
currently in India, the data privacy requirements are governed
by the Information Technology Act 2000, amendment 2008.
Due to COVID-19, regulations will require companies to put
in place processes, policies and infrastructure for collecting
personal information about medical condition of employees,
vendors visiting our premises and other visitors. Significant
cost and effort will be expended in complying with statutory,
regulatory or contractual restrictions with respect to collection of
data, its storage, its security and dissemination to manage data
privacy risk.
Thus, data privacy laws are increasing the imperatives to
protect personal information of individuals. Citizens and
Governments across the globe continue to face data scandals
and data breaches. This has transformed the way that citizens,
governments and organisations think about data privacy
globally.
Customer Experience and Retention
Risk: Digital Services has now 387.5 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 Digital Services
to generate sustainable business performance and return on
its investments. Digital Services is committed to deliver on a
differentiated customer experience and constant endeavour is
to proactively mitigate any such risks that may weaken it’s value
propositions, brand and customer loyalty.
Also, Reliance has implemented strong and intelligent monitoring and response
capabilities to protect Reliance’s Information and Information Assets. To
mitigate this risk further, Reliance has conducted extensive awareness sessions
about cybersecurity threats, increased use of big-data, machine learning and
digital forensic capabilities to monitor these threats.
In order to ensure and demonstrate preparedness, Reliance has obtained
external global certifications like ISO 27001, PCI DSS 3.2 (Payment Card
Industry Data Security Standard).
Risk Response: Reliance is constantly evolving its Data Protection Policy which
are not only compliant with Indian regulations but are based on global best
practices and standards to allay any personal data privacy concerns. Reliance
group continues to upgrade its Data Privacy Framework and 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 and embedded across the entire
data lifecycle. Employees’ consent management process is established, and
explicit consent is being taken for services provided to a third party. Enhanced
practices are in place to ensure protection of personal data while sharing it with
third parties. Identified applications which store personal data are adequately
secured. Besides, data privacy awareness campaigns are conducted on an
ongoing basis.
Risk Response: With onset of COVID-19, Digital Services adopted Work from
Home (WFH) policy for most of its staffs and proactively engaged with local
authorities for smooth passage of resources to provide uninterrupted
services to its customer base. Other steps taken were: deployment of
JioPOS Lite for mobile recharges, limited hours store operations in few
rural and semi urban areas, shift to virtual call center for customer support,
enhancing network capacity for better indoor coverage in residential areas and
above all continuous drive for improvement in quality of service resulting in
better customer experiences.
Further, to ensure sustained customer value proposition, Digital Services’
strategic and risk framework encapsulates the following mitigations/plans to
deliver next generation digital services:
1. Expand Digital Services product offerings to diversify revenue sources and
customer base on the back of pan-India penetration.
2. Continual investments in operational excellence and network infrastructure
to deliver superior customer experience.
3. Digital Services Prime Membership Program which offers most competitive
monthly tariff plans in the industry, other attractive deals and offers from
both itself and its partners to ensure retention and loyalty.
4. Digital Services 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.
2) SAFETY AND OPERATIONAL RISKS
Health, Safety and Environmental (HSE) risks in Operations
Risk: HSE risks include the effects of natural disasters (floods,
earthquakes, among others and safety lapses on human capital.
The nature of our operations especially in the hydrocarbon sector
exposes us, our employees and the society, to a wide range of
health, safety, security and environment risks due to the geographic
location and technical complexity of operations.
Various HSE regulations across geographies regulate Reliance’s
business of Exploration & Production of oil and gas, and their
further refining and processing. 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.
Safety and Environmental risks during Transportation
Risk: With most crude being supplied to Reliance by sea vessel,
road and pipeline and the overwhelming majority of refined
products being exported by sea, Reliance faces the risk of HSE
incidents, oil spills leading disruption to business activities.
Events like 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.
Thus, 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.
Physical Security and Natural Calamity risks
Due to the geographical presence and nature of its business
operations, Reliance is susceptible to hostile acts such as terrorism
or piracy which could harm the Company’s people and disrupt
its operations. Some of Reliance’s sites are subject to natural
calamities such as floods, cyclones, lightning and earthquakes.
Failure to respond quickly or to be perceived as not responding
fast enough, in an appropriate manner to either an external or
internal crisis, could disrupt its business and operations severely
and also damage reputation. The impact of such disruption can be
prolonged and severely impact Reliance’s business and operations
if it is unable to restore or replace critical capacity to the required
level within an agreed timeframe.
Risk Response: Reliance’s HSE policy reiterates our value that ‘Safety of
persons overrides all production targets’ and that we believe that all injuries,
occupational illnesses as well as safety and environmental incidents are
preventable.
Reliance has a state-of-the-art dedicated Safety and Operational Risk
(S&OR) function which provides oversight on safety and operational risk
exposures, periodically conducts risk assessments and reviews through
competent multidisciplinary team, to provide independent assurance
on the conformance to the Operating Management System. These risks
across Reliance’s wide spectrum of businesses in the hydrocarbon sector
are managed through various embedded controls at multiple levels of the
hydrocarbon value chain.
The safety operational risk process has matured across hydrocarbon
entities and the entity risk registers are periodically reviewed and updated.
Risk understanding is cascaded through regular risk communication to
stakeholders at both leadership and asset facing levels. It 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 with no harm to environment.
Risk Response: Reliance has a strong vessel vetting and incident monitoring
and emergency response system.
Using an augmented ship vetting program, all vessels contracted to carry
Reliance cargo are screened based on risk rating prior to its induction. For
incident response in shipping, formal documentation and cascading have
been completed.
Reliance has an improved and advanced controls framework for road
transportation which is efficiently run in collaboration with Reliance’s
contractors. Reliance supports 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,
like: defensive driving training, route hazard mapping and real-time tracking.
A dedicated state-of-the-art emergency response center can provide
emergency response to transporters in the country including transportation
through contractors. Reliance’s contractors can use these in an integrated
way to deliver safe operations while on contract with Reliance.
Risk Response: 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 and help Reliance maintain
a proactive posture by continuously monitoring and assessing emerging
threats, vulnerabilities and risks to manage its physical security. Further,
Reliance maintains a best in class detailed disaster recovery, crisis and
business continuity management plans to respond to natural calamities, any
disruption or incident.
The businesses are provided assurance on an ongoing basis by GCS with
respect to the management of security risks affecting its people, assets and
operations. It actively monitors the threat landscape to prevent or mitigate
risks using a ‘de-risking’ framework, ensuring safe operations and business
continuity.
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Physical Security and Natural Calamity risks (Contd.)
Another natural calamity, the coronavirus pandemic (COVID-19), is
an unprecedented event in the history of the world and has created
humongous challenges for mankind and enterprises. The emerging
risk arising out of social distancing, national lockdown, uncertainty
in environment, demand contraction, government intervention
(ranging from encouraging certain business to indirect stoppage of
goods and services) – has overshadowed the last couple of week
out of the entire year.
Continuous application of pre-emptive mitigation measures, proactive
engagement with concerned stakeholders and sustained relationships with
sovereign agencies continue.
Reliance Foundation has been actively involved in India’s war against
COVID-19. The health of our employees and their family is of utmost priority
and we have throughout the pandemic supported our employees through
different means including provision of emergency medical response.
Company ensured the availability of essentials by swiftly enhancing its
capability to deliver beyond stores and ensured adequate supplies to
partner Kirana Stores along with direct pickup from farmers.
3) COMPLIANCE AND CONTROL RISKS
Regulatory compliance risks
Risk: COVID-19 has led the government to announce a range
of notifications which companies needs to adopt swiftly and
effectively.
The evolution of the regulatory environment globally 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.
“Governance” has been expanded to cover more laws, that
companies would be expected to comply with such as SEBI
changes to Governance policy, Ministry of Corporate Affairs
National Guidelines on Responsible Business Conduct.
Risk Response: While Reliance recognises that meeting all applicable regulatory
requirements can be challenging, it has a comprehensive and digitally enabled
compliance management framework which is enhanced on an ongoing basis to:
Understand changes to regulatory standards, in a timely manner and integrate
these changes in the business strategy, risks, compliance processes, controls;
Assign single point of accountability with appropriate responsibility matrix
cascading till the lowest level of organisation with oversight linked back to the
committee of the Board of Directors.
To reduce risks associated with fraud, bribery and corruption, further controls have
been put in place, awareness has been enhanced and training for all employees
has been made mandatory.
COVID-19 instigated regulatory changes across legislative bodies were also
tracked and integrated within reliance compliance management system by a
dedicated team of multidisciplinary competent people including lawyers, Company
Secretaries, Chartered Accountants with zero tolerance tone from the Board of
Directors.
4) FINANCIAL RISKS
Treasury risks
Risk: Treasury risks include, among others, exposure to movements
in interest rates and foreign exchange rates. Reliance also
maintains sufficient liquidity, buffer to be able to meet all 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.
Risk Response: All long term liabilities which are due for maturity in FY
21 have already been refinanced and the company continues to maintain
enough liquidity buffer to meet additional demands that may emerge on
account of COVID-19 crisis.
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.
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.
EMBRACING CHANGE AND CONTINUOUS IMPROVEMENT
Reliance’s ability to withstand the impact of the risks was bolstered by its robust Risk Management Framework. It helped us to preempt
scenarios, respond in time and is providing us with the fortitude to withstand pressure. As we go through the VUCA (Volatile, Uncertain,
Complex and Ambiguous) world, we have an enhanced risk refresh cycle both in terms of its periodicity and intensity. Teams are being
trained to be future-ready, harnessing technological support and match with emerging domain knowledge. The GRCA team has also
demonstrated its capability to deliver through technology tools, in remote working scenario. Process mining tools are being deployed
to help enhanced real-time monitoring of process, controls and compliances. We shall now perform what-if analysis, predictive scenario
building, use of external risk proxies and indices in data analytics and machine learning with more periodicity and intensity in the risk
management process for key risks and emerging risks.
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Winner of Future Ready Factory Award by
Frost and Sullivan
Winner at 18th Annual Greentech
Safety Award
Winner of Golden Peacock Environment
Management Award
LEADERSHIP
• Shri. Mukesh D. Ambani was recognised
as the Iconic Business Leader of
the Decade at the Indian Business
Leader Awards (IBLA).
• Smt. Nita Ambani became the first Indian
to be honoured and elected to the
Board of The Metropolitan Museum of
Art at New York.
• Smt. Nita Ambani has been named
among the top-10 iSportconnect’s
Influential Women In Sport 2020 by the
largest global private network of Sport
Business Executives.
• RIL retains No. 1 Indian company
tag in Forbes magazine’s ‘Global
2000 – The World’s Largest Public
Companies’ list for 2019.
• RIL has become the first Indian private
company to top the Fortune India 500
List of largest corporations.
TECHNOLOGY, PATENTS, R&D
AND INNOVATION
• Awarded for exceptional presentation
in UNIPOL PE Global Technology
Conference 2019 in USA.
• DTA refinery was awarded “India
Manufacturing Excellence Award
2019” in High Platinum Category
& Future Ready Factory Award by
Frost and Sullivan.
• Hazira Manufacturing Division was
conferred highest Platinum Award
along with Future Ready Factory
certificate in Process Sector, Mega Large
Business category.
• Won National Awards for Manufacturing
Competitiveness (NAMC) by
International Research Institute for
Manufacturing (IRIM).
176
• Received the Federation of Indian
• Reliance Retail received Golden
Petroleum Industry (FIPI) Innovator of
the Year Award for Development and
Commercialisation of Low-Cost Anti-
Coking and Sulfiding Additive from DSO
– a by-product of LPG Merox.
RETAIL
• Reliance Retail received the Annapoorna
Food Retailer of the Year Award 2019
conferred by Retailers Association of
India (RAI) in association with Federation
of Indian Chamber of Commerce and
Industry (FICCI).
• Marks & Spencer Reliance JV was
recognised among the top 75 ‘Best
Workplaces for Women’ in India and
highest ranked retailer in ‘India’s Best
Companies to Work For’ as per Great
Places To Work (GPTW) Institute.
• Reliance Digital was selected as India’s
only Electronics Retail Superbrand for
2019-20 by The Superbrands Company.
• Reliance Retail featured in the Global
100 Top Retailers – the only Indian
company to do so.
• Reliance Retail has topped the
list of 50 fastest growing retailers
globally in Deloitte’s Global Powers of
Retailing Report, 2020.
Reliance Digital received:
•
• ET Now Awards 2019 – Best use
of Social Media Marketing for
“Digital India Sale”.
Indian Retail Awards 2019 – National
Retailer of the Year by Franchise India.
Indian Retail Awards 2019 – CDIT &
Electronics Retailer of the Year by
Franchise India.
•
Spoon Award at India Retail Forum by
IMAGES Group for:
• Most Admired Category Performer of
the Year across 3 categories.
• Most Admired Brand Retail
Partnership of the Year for
partnership with Daawat and Parle.
• Reliance Fresh and Reliance SMART
won 4 Awards at ET Now World Digital
Marketing Congress Global Digital
Marketing Awards.
• Reliance Fresh and Reliance SMART won
3 Awards at ET NOW Global Awards for
Retail Excellence.
DIGITAL SERVICES
• Reliance Jio won the ‘Best Data Service
Innovation – Emerging Market’ at Global
Carrier Awards.
• Reliance Jio won Gold Award for
Excellence in Innovation in Technology
Industry at Asia Pacific Stevie.
• JioPhone was adjudged as ‘Mobile
Device Innovation’ at Global
Telecom Awards.
• Jio was recognised as ‘Best LTE Service
Provider’ and JioPhone as ‘Handset
Innovation of the Year’ at Asia’s Telecom
Excellence Awards.
• JioTV won the ‘IPTV Innovation Award’
at World Communication Awards.
• Reliance Jio was named as ‘Champions
of Rural Market’ by Economic Times.
• Reliance Jio was awarded for ‘Excellence
in Leveraging HR Technology’ at SHRM
Excellence Awards.
• Reliance Jio was rated as Strongest
Brand in India by Brand Finance.
• Jio was ranked 2nd in India’s Most
Influential Brand list by Ipsos.
• Jio was named as India’s Most Valuable
Brands (10th) by Kantar Millward Brown.
• Reliance Jio was awarded as ‘Marketer
JobBuzz Workplace 2025 Conclave and
Expo Den”, 2019.
• Won two gold awards for “Best
of the Year’ by The International
Advertising Association’s (IAA).
• JioSaavn was adjudged as ‘Best Music
App’ at Drivers of Digital Awards.
• JioInteract won ‘Best Innovation in
Mobile Marketing’ at Indian Digital
Marketing Awards (IDMA) 2019.
• Reliance Jio was named as ‘Winner –
Leading Practice in Talent Acquisition’
by People First.
• Reliance Jio was awarded as ‘Best
Video Distribution Platform’ by
Economic Times.
MEDIA
• CNN News18 won the Exchange4media
News Broadcasting Awards (ENBA)
Awards 2019 for “Best early prime
show (English): Viewpoint”, and
“Best late prime time show (English):
News Epicentre”.
• CNBC Awaaz won the ENBA Awards
in 2019 for “Best News Channel of
the year – Hindi”.
• CNBC TV18 won the ENBA Awards 2019
for “Best Business Programme in English
(India Business Hour)”, “Best Anchor
– English – Shereen Bhan”, and “Best
News Channel of the year – English”.
• Entertainment subsidiary Viacom18 won
“Creative Company of the Year” at the
2019 ABBY Awards.
• Moneycontrol won the ACEF Global
Customer Engagement Awards – Most
Admired Mobile App Gold, 2018.
• Andhadhun won the National Award for
“Best Hindi Film”, 2018.
HUMAN RESOURCES
• L&D VMD team won “Diamond” Award at
State level HR/CSR convention.
• L&D VMD team bagged “Par Excellence
Award” at NCQC 2019, Varanasi.
• RIL’s culture of open communication
and enabling leadership won it the
Corporate Recognition Award 2019
— the highest corporate honour from
Toastmasters International.
• Runners-up in the “Happiest Workplace”
and “Best New-Age Employer in
Conglomerates” categories in “Times
Corporate University” and “L&D Team
of the Year” and three silver awards for
“Best Induction Training Program”, “Best
Mobile Learning Program” and “Best
Blended Learning Program”, at the TISS
Leap Vault CLO Awards 2019.
• Reliance TUP 4.0 awarded the 2nd Most
Prestigious B-School Competition by
Dare2Compete Awards.
ENERGY AND WATER
CONSERVATION / EFFICIENCY
• Won the 13th CII National Award for
Excellence in Water Management 2019,
in heavy industry category.
CAPITAL RESOURCES
• Reliance was awarded as Best Issuer
(Corporate) – South Asia by The Asset,
Asia’s leading financial publication for
issuers and investors.
• RIL’ became the first non-European
domiciled borrower and the first
Asian corporate to enter a deal of
EUR 405 million which was awarded
Schuldschein of the year by Global
Capital, a leading financial publication
for issuers and investors.
‘Best ECA-backed Telecoms Finance
Deals of the Year’ by Trade and Export
Finance (TXF) for its K-Sure supported
ECA financing of US$600 million and
JPY 15.90 billion.
•
HEALTH, SAFETY AND
ENVIRONMENT
• Awarded ‘Winner’ for outstanding
achievement in field of Environment
Management in Textile Sector
at 19th Annual Greentech
Environment Award 2019.
• Awarded ‘Winner’ at 18th Annual
Greentech Safety Award 2019
for persistent commitment in the
field of Safety.
• Recertified “Green Fiber” Recycler
by Control Union, Netherlands for
the fibre produced at Barabanki
Manufacturing Division.
• Reliance received ‘Golden Peacock
Environment Management Award, 2019’
for Vadodara Manufacturing Division.
• Awarded “Energy and Environment
Foundation Global Safety Award 2020”.
• HMD’s Antiretroviral Treatment centre
was declared the ‘Best ART Centre in
Low Load Category’ by the Information
Education & Communication division,
Gujarat State AIDS Control Society,
Health & Family Welfare Department,
Government of Gujarat.
• DTA Refinery won International Safety
Award by British Safety Council, UK.
• Reliance received ‘Greentech
Environment Award-2019’ for Nagothane
Manufacturing Division.
• RIL’s Medical Services team received
the innovative best practices at RIL,
Bharat Electronics Limited Award for
best scientific paper and Young Scientist
Award at the National Conference on
Occupational Health – OCCUCON 2020.
CORPORATE SOCIAL
RESPONSIBILITY
• Reliance Industries Limited was
awarded the Golden Peacock Award for
Corporate Social Responsibility 2019
for improving the livelihoods of farmers,
fisher-folk and livestock owners through
information services.
• Reliance Foundation’s Machli app
won the “Application for Social Good”
Award at the 10th AEGIS Graham
Bell Awards 2019.
• Reliance Foundation’s Jal Shakti
Abhiyan campaign won two gold
International Advertising Association
(IAA) Olive Crown Awards 2020 under
“Events” and “Corporate Crusader of the
Year” categories.
• Reliance won the Confederation of
Indian Industry (CII) National Award for
Excellence in Water Management, 2019,
in the “Beyond the Fence” category.
• RIL bagged the Mahatma Award, 2019,
under the category for Excellence in
Corporate Social Responsibility.
• Reliance Foundation wins the ACEF 8th
Asian Leaders Award, 2019, for Disaster
Response during Kerala floods in 2018.
• Reliance mentored Farmer Producer
Organisations in Agar, Madhya Pradesh
and Kamareddy, Telangana were
conferred with Samunnati and the ET
FPO Awards for their Best Performance
in West and South Regions respectively.
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GLOSSARY
Term
Sr.
No
Meaning
Reliance Foundation Winners at
CII National Award
Reliance Foundation Winners at
Olive Crown Awards
RIL Winning Golden Peacock
Award for CSR
• Reliance mentored Saurashtra
Swanirbhar Khedut Producer Co. Ltd.
was awarded “FPO of the Year in
Agriculture-2019” under Mature and
Emerging category.
• Reliance Foundation received the “Best
Innovative CSR Project Award 2019” by
UBS Forum for improving the livelihoods
of marine fishermen in India through
information services.
• The Dahej Manufacturing division’s
CSR team won the 4th “Ek Kaam Desh
Ke Naam” Exceed Award for its CSR
initiative ‘Women empowerment through
skilling: Transforming human into
Human Resource’.
• Sir H.N. Reliance Foundation Hospital
and Research Centre won FICCI
Social Initiative Awards 2019 in the
Corporates & Healthcare Service
Providers Category.
• The surgeons of Sir H.N. Reliance
Foundation Hospital and Research
Centre were honoured with Best Critical
Care for Patients Award at the Emirates
Critical Care Conference in Dubai.
• Sir H.N. Reliance Foundation Hospital
and Research Centre awarded Times
Healthcare Leaders of Medicine and
technology awards 2020 for Best
Multi Speciality Hospital, Best Hospital
in Cardiac Science, Best Hospital in
Gastroenterology, Best Hospital in
Oncology and CEO of the year.
• At Economic Awards 2020, Sir H.N.
Reliance Foundation Hospital and
Research Centre received best
national hospital award for Cardiology,
Excellence in CSR at National Level
and best Multi Speciality hospital at
Regional level.
• Sir H.N. Reliance Foundation Hospital
and Research Centre won Navbharat
Healthcare summit awards 2020 for Best
Healthcare Leadership.
SUSTAINABILITY
• Apex India Environment Excellence
Award 2019 under Platinum Category for
Dahej Manufacturing Division, Silvassa
Manufacturing Division and Hoshiarpur
Manufacturing Division.
• RIL’s Hoshiarpur Manufacturing
Division won ‘FICCI ‘Chemicals and
Petrochemicals Awards 2019’ for “Most
Environment-Friendly Company in
Petrochemicals”.
‘GHKC – GreEnv Contest-2019’ for
Silvassa Manufacturing Division.
• Hoshiarpur manufacturing division
•
achieved the distinction of being the
first polyester yarn manufacturing site in
India to receive the coveted ‘GreenCo
Gold rating’ by CII.
• Received Bronze in ‘Asia’s Best
Community Reporting Award’ at Asia
Sustainability Reporting Awards.
QUALITY
• PTD Parakram QC Team, Kaizen Lean
QC Team of QAD and “Quality Circle-
Warriors” from UB2 Plant won “Excellent
Award” at NCQC 2019, Varanasi.
• RIL’s ship Relgas Isheta was awarded
a Blue Flag for participating in the US
Coast Guard’s AMVER (Automated
Mutual Assistance Vessel Rescue
System) programme.
1
2
3
4
5
6
7
8
9
Big-box retail chain
Phygital
Glocalised
Omni-channel
FTTH
Edge computing
A big-box store is a physically large retail establishment, usually part of a chain of stores. The term
sometimes also refers, by extension, to the company that operates the store.
Phygital marketing is a blended customer experience where digital applications relate to the physical world
and actual space of the customer journey. Most often, phygital experiences are immersive, interactive real-
time experiences that offer immediate transactions and/or engagement.
Reflecting or characterised by both local and global considerations.
Omni-channel is a cross-channel content strategy that organisations use to improve their user experience
and drive better relationships with their audience across points of contact. It is a multi-channel approach
that provides the customer with an integrated customer experience.
Fiber-to-the-home (FTTH) is the delivery of a communications signal over optical fiber from the operator's
switching equipment to a home.
Edge computing is a distributed computing system that brings computation and data storage closer to the
location where it is needed, to improve response times and save bandwidth.
Over-The-Top (OTT)
An over-the-top media service is a streaming media service offered directly to viewers via the Internet.
Downstream
Upstream
10
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 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.
11
Gross Refining Margin (GRM)
GRM is the difference between crude oil price and total value of petroleum products produced
by the refinery.
12
13
Crude throughput
Crude throughput is the total amount of crude that is processed in the refinery.
Refinery Off-Gas Cracker (ROGC) ROGC is a petrochemical unit that uses the gas generated as a byproduct
of refining operations.
14
Petcoke gasification
A process for converting petroleum coke (petcoke) and other refinery waste streams and residuals into
power, steam, and hydrogen for use in the production of cleaner transportation fuels.
15
HVAC systems
A Heating, Ventilation and Air Conditioning (HVAC) system is a heating and cooling system that uses
dampers or valves to heat or cool only the designated areas.
16
HSE Compliance Standards
Health, Safety, Environment (HSE) Compliance Standards establish the minimum requirements to meet
corporate expectations for the management of Health, Safety and Environmental aspects.
17
LCA studies
18
ETP
Life Cycle Assessment (LCA) is the systematic analysis of the environmental impact of products during their
entire life cycle.
Effluent Treatment Plant (ETP) is a process design for treating industrial waste water for its reuse or safe
disposal to the environment.
178
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Reliance Industries Limited Integrated Annual Report 2019-20Notice Financial StatementsGovernance Management ReviewCorporate OverviewManagement Discussion and Analysis (contd)Naye India Ka Naya Josh Business Responsibility Report
INTRODUCTION
At Reliance Industries Limited (RIL),
sustainability is viewed as environmental
and social responsibility, which allows
the Company to deliver on stakeholder
expectations. RIL continues to communicate
the Company’s obligations and
performance to all its stakeholders through
its Business Responsibility Report (BRR).
As a responsible corporate citizen, RIL
continues to actively engage with all its
stakeholders to drive their growth for all.
The Company believes in accelerating
India’s transition to a knowledge economy
and continues its efforts 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 and Exchange Board of
India (Listing Obligations and Disclosure
Requirements) Regulations, 2015
(SEBI LODR) and the National Voluntary
Guidelines on Social, Environmental and
Economic Responsibilities of Business
(NVGs) released by the Ministry of
Corporate Affairs (MCA), Government of
India. To provide guidance to businesses
regarding responsible business conduct,
the MCA 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 NVGs with
the Sustainable Development Goals,
UNGP, 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.
NVG PRINCIPLES
1. ETHICS, TRANSPARENCY AND
2. PRODUCT LIFE CYCLE
ACCOUNTABILITY
Businesses should conduct and govern
themselves with ethics, transparency
and accountability
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 well-being
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
GENERAL INFORMATION ABOUT THE COMPANY
Disclosures
Corporate Identity Number (CIN) of the Company
Information/Reference sections
L17110MH1973PLC019786
Name of the Company
Registered address
Website
E-mail id
Reliance Industries Limited
3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021, India
www.ril.com
investor.relations@ril.com
Financial year reported
2019-20
Refining, Petrochemicals (Polymers, Polyester and Fibre Intermediates), Exploration and
Production of Oil & Gas and Textiles
Sector(s) that the Company is engaged in
(industrial activity code-wise)
Industrial Group Description
061
192
201
Extraction of crude petroleum
Manufacture of refined petroleum products
Manufacture of basic chemicals, fertilisers and nitrogen compounds, plastic
and synthetic rubber in primary forms
Manufacture of man-made 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
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
• Transportation fuels
• Polymers
• Polyester fibre
International locations:
i.
RIL has undertaken business activities in eight international locations (on a standalone basis).
The major locations include North America, South America, Europe, the Middle East and Asia.
ii. National locations:
RIL has carried out business activities in over 50 domestic locations. The Company’s
manufacturing divisions are at Barbanki, Dahej, Hazira, Hoshiarpur, Jamnagar, Nagothane,
Naroda, Patalganga, Silvassa and Vadodara. The Exploration and Production (E&P) units are at
KG-D6 – Gadimoga. Besides, there are CBM blocks and various regional marketing offices.
Markets served by the Company:
In addition to serving Indian markets, RIL exported to 109 countries worldwide during FY 2019-20.
A detailed Business Responsibility Report based on the National Voluntary Guidelines on Social, Environmental and Economic
Responsibilities of Business (NVG-SEE) and National Guidelines on Responsible Business Conduct (NGRBC) released
by the Ministry of Corporate Affairs (MCA), Government of India is available on the Company’s website and can be
accessed at https://www.ril.com/DownloadFiles/BRR201920.pdf
180
Naye India Ka Naya Josh
181
Naye India Ka Naya JoshManagement ReviewNotice Financial StatementsGovernance Corporate OverviewReliance Industries Limited Integrated Annual Report 2019-20 INDEPENDENT REASONABLE ASSURANCE STATEMENT TO RELIANCE INDUSTRIES LIMITED ON
THEIR SUSTAINABILITY DISCLOSURES IN THE INTEGRATED ANNUAL REPORT FOR FINANCIAL
YEAR 2019-20
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 2019-20. 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
182
Responsible Business Conduct (NGRBC),
Task Force on Climate-related Financial
Disclosures (TCFD) recommendations,
United Nations Guiding Principles on
Business and Human Rights (UNGP), United
Nations Global Compact (UNGC) Principles,
Global Recycle Standard (GRS) Version 3.0,
Natural Capital Protocol, Social and Human
Capital Protocol, the selected Government
of India’s National Missions and Transition
Pathway Initiative (TPI).
• 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
ASSURANCE STANDARDS
We conducted the assurance in
accordance with
• Reasonable Assurance requirements of
International Federation of Accountants’
(IFAC) International Standard on
Assurance Engagement (ISAE) 3000
(Revised) Assurance Engagements
Other than Audits or Reviews of
Historical Financial Information
• Under this standard, we have reviewed
the information presented in the report
against the characteristics of relevance,
completeness, reliability, neutrality and
understandability.
BOUNDARY, SCOPE AND
LIMITATIONS
• The boundary of assurance covers
the sustainability performance of RIL’s
manufacturing divisions, refineries,
exploration and production in India;
business divisions such as chemicals;
fibre intermediates; petroleum; polyester;
polymers; Reliance Foundation and
corporate office at Reliance Corporate
Park, for the period 1st April, 2019 to
31st March, 2020.
• The sustainability disclosures covered
as part of the scope of the assurance
process were limited to water recycled
and reused, reduction of energy
consumption, total number of employees
at RIL and total man-hours of training
provided to RIL workforce.
• The assurance process was limited to
the selected sustainability disclosures
at relevant sections in the annual
integrated report.
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 materiality thresholds used by RIL
for data analysis.
• Discussions with the personnel
responsible for the evaluation of
competence required to ensure
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
June 20, 2020
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 2019-20.
• Verification of disclosures through site
visits and virtual conference meetings
with 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 evidences were
obtained to support our conclusions on the
information and data verified.
Where such documentary evidences could
not be collected due to sensitive nature of
the information, our team verified the same
at the company premises.
CONCLUSIONS
Based on our assurance procedures
and in line with the boundary, scope and
limitations, we conclude that
• The selected sustainability parameters
and disclosures presented in the Report
by RIL are fairly represented.
• 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.
183
Business Responsibility Report (contd)Naye India Ka Naya JoshManagement ReviewNotice Financial StatementsGovernance Corporate OverviewReliance Industries Limited Integrated Annual Report 2019-20 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.”
Shri Dhirubhai H. Ambani
Founder Chairman
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 the stakeholders. We consider
stakeholders as partners in our success
and remain committed to maximising
stakeholders’ value, be it Customers, Local
Communities, Employees, Suppliers, Trade
Unions, NGOs, Investors & Shareholders and
Government & Regulatory Authorities. This
approach to value creation emanates from
RIL’s 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 and 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 & Assurance teams, Auditors
and the senior management. Our employee
satisfaction is reflected in the stability of
our senior management, low attrition across
various levels and substantially higher
productivity. Above all, we feel honoured
to be integral to India’s social development.
Details of several such initiatives are
available in the Report on Corporate Social
Responsibility.
At RIL, we believe that as we move closer
towards our aspirations of being a global
corporation, our Corporate Governance
standards must be globally benchmarked.
Therefore, we have institutionalised the
right building blocks for future growth.
The building blocks will ensure that we
achieve our ambition in a prudent and
sustainable manner. RIL not only adheres
to the prescribed Corporate Governance
practices as per the Listing Regulations,
but is also committed to sound Corporate
Governance principles and practices. It
constantly strives to adopt emerging best
practices being followed worldwide. It is
our endeavour to achieve higher standards
and provide oversight and guidance to the
management in strategy implementation,
risk management and fulfilment of stated
goals and objectives.
Over the years, we have strengthened
governance practices. These practices
define the way how business is conducted
and value is generated. Stakeholders’
K. Sethuraman
Savithri Parekh
Jyoti Jain
Sridhar Kothandaraman
Ratnesh Rukhariyar
“At Reliance Industries Limited,
we are committed to create an
agile organisation promoting
practices that uphold governance
and ensure business continuity.”
184
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 Initial Public Offer (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 22.7%, Earnings Before
Interest, Tax, Depreciation and Amortisation
(EBITDA) before exceptional items 24.3%
and Net Profit before exceptional items
25.1%. The financial markets have endorsed
our sterling performance and the market
capitalisation has increased by CAGR of
30.4% during the same period. In terms of
distributing wealth to our shareholders,
apart from having a track record of
uninterrupted dividend payout, we have
also delivered consistent unmatched
shareholder returns since listing. The result
of our initiative is our ever widening reach
and recall. Our shareholder base has grown
from 52,000 after the IPO to a consolidated
present base of around 26 lakh.
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 various 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 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
in the Company.
The Chairman takes a lead role in
managing the Board and facilitating
effective communication among Directors.
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.
The Company Secretary assists the
Chairman in management of the Board’s
administrative activities such as meetings,
schedules, agendas, communications and
documentations.
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 the 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
• Code of Practices and Procedures for
Fair Disclosure of Unpublished Price
Sensitive Information
• Health, Safety and
Environment (HSE) Policy
• Vigil Mechanism and
Whistle-blower Policy
• Prevention of Sexual Harassment Policy
• Corporate Social Responsibility Policy
• Policy for selection of Directors and
determining Directors’ independence
• Remuneration Policy for Directors,
Key Managerial Personnel and
other employees
• Dividend Distribution Policy
• Policy for determining Material Subsidiaries
• Policy on Subsidiary Governance
• 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
• Policy for Preservation of Documents
• Group Risk Management Policy
• Materiality Policy for Commodity exposure
• Commodity and Freight Risk
Management Policy
• Foreign Exchange and Derivatives Risk
Management Policy
Investment Governance Policy
•
• Data Privacy Policy
•
•
Information Security Policy
Intellectual Property Policy
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AUDITS AND INTERNAL CHECKS
AND BALANCES
S R B C & CO LLP, Chartered Accountants
and D T S & Associates LLP, Chartered
Accountants, are the Statutory Auditors
of the Company. The Statutory Auditors
and the Group Internal Audit Function
perform independent reviews of the
ongoing effectiveness of the Reliance
Management System which integrates
the various components of the systems of
internal control.
RISK MANAGEMENT, INTERNAL
CONTROLS AND COMPLIANCE
The Company has put in place the “Reliance
Management System” (RMS) as a 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. RMS is enabled
through extensive use of technology to
support the risk management processes,
ensure the ongoing effectiveness of internal
controls in processes, compliance with
applicable laws and regulations.
In conformity with international
standards, the Compliance Function
ensures compliance activities related
to the Financial, Operational and People
Management Systems of the various group
entities. This includes covering various
statutes such as industrial and labour laws,
taxation laws, corporate and securities
laws, health, safety and environmental laws,
etc. All compliance activities are supported
by a robust online compliance monitoring
system (iRCMS) to ensure ongoing
compliance. The ongoing effectiveness
of compliance management activities is
reviewed independently by the Group
Audit Function.
The combination of independent
governance, assurance and oversight
structures, combined with automated risk
management, controls and compliance
monitoring, ensures the ongoing
robustness and integrity of financial
reporting, management of internal controls
and ensures compliance with statutory laws,
regulations and company’s policies. These
provide the foundations that enable optimal
186
use and protection of assets, facilitate the
accurate and timely compilation of financial
statements and management reports.
BEST CORPORATE
GOVERNANCE PRACTICES
RIL strives for highest Corporate
Governance standards and practices. It,
therefore, endeavours to continuously
improve and adopt the best of
international Corporate Governance codes
and practices. Some of the implemented
global governance norms and best
practices include the following:
• All securities related filings with
Stock Exchanges are reviewed
every quarter by the Stakeholders’
Relationship Committee.
• The Company has independent Board
Committees covering matters related to
Risk Management, HSE, Internal Audit,
Stakeholder Relationship, Directors’
Remuneration and the nomination
of Board members.
• The Company also has several
other Executive committees of
senior management who review the
ongoing effectiveness of operational
and financial risk mitigations and
governance practices.
• The Group has an independent Internal
Audit Function that provides risk-based
assurance across all material areas of
Group Risk and Compliance exposures.
• 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
Accountants to conduct concurrent audit
of share transfer and other incidental
functions carried out by Registrar and
Transfer Agents.
RIL’S SUSTAINABILITY
REPORTING JOURNEY AND
INTEGRATED REPORTING
RIL commenced its Sustainability Reporting
in the FY 2004-05, based on the Global
Reporting Initiative’s (GRI) reporting
guidelines. The reports are available on the
website of the Company.
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. RIL’s Sustainability
Reporting Journey and its Integrated
Reporting is covered in Management
Discussion and Analysis Report.
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
Registrar and Transfer Agents, details of
which are available on the Company’s
website. RIL ensures that complaints
of its shareholders are responded to
promptly. A comprehensive and informative
shareholders’ referencer is available on the
website of the Company.
ROLE OF THE COMPANY
SECRETARY IN OVERALL
GOVERNANCE PROCESS
Functions of of the Company Secretary
are discharged by the Group Company
Secretary and the Joint Company Secretary.
The Company Secretary plays a key role
in ensuring that the Board (including
committees thereof) procedures are
followed and regularly reviewed. The
Company Secretary ensures that all relevant
information, details and documents are
made available to the Directors and senior
management for effective decision-making
at the meetings. The Company Secretary
is primarily responsible to assist and
advice the Board in the conduct of affairs
of the Company, to ensure compliance
with applicable statutory requirements,
to provide guidance to directors and to
facilitate convening of meetings. The
Company Secretary interfaces between the
management and regulatory authorities for
governance matters.
BOARD OF DIRECTORS
BOARD LEADERSHIP
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. The Board 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.
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:
Sr.
No.
1
2
Name of the Director
Category
Promoter Directors
Mukesh D. Ambani
(Chairman and Managing Director)
Nita M. Ambani
(Non-Executive Director)
Yogendra P. Trivedi
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K. V. Chowdary
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
3
4
5
6
7
8
9
10
11
12
13
14
Board members named at Sr. No. 3 to 9 are Independent Directors.
Executive Directors
Non-Executive Directors
Director Identification
Number (DIN)
00001695
No. of equity shares held as
on March 31, 2020
75,00,000
03115198
00001879
00228513
00074119
06646490
07175393
02787784
02011213
08485334
00001620
00001623
00012144
02460200
75,00,000
60,400
-
-
-
12,000
13,500
-
-
33,56,748
32,23,772
6,00,000
53,000
Smt. Nita M. Ambani is the spouse of Shri Mukesh D. Ambani.
Shri Nikhil R. Meswani and Shri Hital R. Meswani, are brothers and not related to Promoter Directors. None of the other directors are
related to any other director on the Board.
Shri Mansingh L. Bhakta (88 years), demitted office as an Independent Director of the Company, w.e.f. August 12, 2019, on account of his
advanced age. Other than this, there was no other material reason for demitting office as an Independent Director of the Company.
DIRECTORS’ PROFILE
A brief resume of the Directors, nature
of their expertise in specific functional
areas etc. are available on the website
of the Company.
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 including Finance, Sales,
Marketing of the Company’s major business
segments, overview of business operations
of major subsidiaries, global business
environment, business strategy and risks
involved. Detailed presentations on the
Company’s business segments are made
in separate meetings of the Independent
Directors from time to time.
Monthly / 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 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 the Independent
Directors are available on the website
of the Company.
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.
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A copy of the Code of Conduct and Our
Code are available on the website of the
Company. The Codes have been circulated
to the Directors and Senior Management
Personnel, and its compliance is affirmed
by them annually.
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.
A declaration on confirmation of compliance
of the Code of Conduct, 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
CORE SKILLS / EXPERTISE /
COMPETENCIES AVAILABLE
WITH THE BOARD
The Board comprises of qualified members
who possess required skills, expertise and
competencies 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
While all the Board members possess the skills identified, their area of core expertise is given below:
Name of the
Director
Name of the
Director
Area of Expertise
Area of Expertise
Leadership / Operational experience
Strategic Planning
Industry Experience, Research & Development
and Innovation
Global Business
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Leadership / Operational experience
Industry Experience, Research & Development
and Innovation
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Leadership / Operational experience
Strategic Planning
Industry Experience, Research & Development
and Innovation
Global Business
Corporate Governance
Leadership / Operational experience
Strategic Planning
Industry Experience, Research & Development
and Innovation
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Leadership / Operational experience
Strategic Planning
Industry Experience, Research & Development
and Innovation
Global Business
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Leadership / Operational experience
Strategic Planning
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Leadership/ Operational experience
Strategic Planning
Global Business
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Mukesh D. Ambani
Yogendra P. Trivedi
Prof. Dipak C. Jain
Dr. Raghunath A.
Mashelkar
Adil Zainulbhai
Raminder Singh
Gujral
Dr. Shumeet Banerji
188
Arundhati
Bhattacharya
K. V. Chowdary
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
Leadership / Operational experience
Strategic Planning
Global Business
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Leadership / Operational experience
Strategic Planning
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Leadership / Operational experience
Strategic Planning
Corporate Governance
Leadership / Operational experience
Strategic Planning
Industry Experience, Research & Development
and Innovation
Global Business
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Leadership / Operational experience
Strategic Planning
Industry Experience, Research & Development
and Innovation
Global Business
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Leadership/ Operational experience
Strategic Planning
Industry Experience, Research & Development
and Innovation
Global Business
Financial, Regulatory / Legal & Risk Management
Corporate Governance
Leadership / Operational experience
Industry Experience, Research & Development
and Innovation
Financial, Regulatory / Legal & Risk Management
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 an 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 / she
participates as a Director and thereafter
at the first meeting of the Board in every
financial year, gives a declaration that
he / she meets the criteria of independence
as provided under the law and that
he / she is not aware of any circumstance or
situation, which exist or may be reasonably
anticipated, that could impair or impact
his / her ability to discharge his / her duties
with an objective independent judgement
and without any external influence.
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 Board of Directors of the Company
way back in October 2005 introduced the
concept of Lead Independent Director and
had designated Shri Mansingh L. Bhakta as
a Lead Independent Director. The Role of
the Lead Independent Director is as under:
• Presides over meetings of the
Independent Directors
• Ensures adequacy and timely flow of
information to the Independent Directors
• Liaises between the Chairman and
Managing Director, the Management and
the Independent Directors
• Presides over meetings of the Board
and Shareholders when the Chairman
and Managing Director is not present or
where he is an interested party
• 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
two times during the financial year 2019-20.
Such meetings were conducted to enable
the Independent Directors to discuss
matters pertaining to the Company’s affairs
and put forth their views.
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 main
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 and is authorised to constitute
other 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.
NUMBER OF BOARD MEETINGS
Seven Board meetings were held during
the financial year, as against the statutory
requirement of four meetings. The details of
Board meetings held are given below:
Date
April 18, 2019
July 19, 2019
October 18, 2019
October 25, 2019
December 16, 2019
January 17, 2020
February 17, 2020
Board
Strength
14
14
14
14
14
14
14
No. of
Directors
Present
13
14
14
14
14
14
13
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Attendance of Directors at Board Meetings, last Annual General Meeting (AGM) and No. of other
Directorship(s) and Chairmanship(s) / Membership(s) of Committees of each Director in various Companies:
Name of the Director
Attendance at
meetings during
2019-20
No. of other
Directorship(s)
as on
31-03-2020
Category of Directorship and name of
the other listed Company(s)
as on 31-03-2020
Mukesh D. Ambani
Mansingh L. Bhakta*
Yogendra P. Trivedi
Board
7
1
7
AGM
Yes
Yes
Yes
(1)
3
NA
4
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K. V. Chowdary#
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
NA – Not Applicable
7
7
7
7
6
7
5
7
7
7
7
7
Yes
Yes
Yes
Yes
Yes
Yes
NA
Yes
Yes
Yes
Yes
Yes
3
6
7
2
2
5
2
2
1
3
4
1
No. of
Membership(s) /
Chairmanship(s)
of committees in
other Company(s)
as on 31-03-2020
(2)
Nil
NA
3 (including 2 as
Chairman)
2
1
Nil
NA
1. Zodiac Clothing Company Limited –
Independent Director
2. The Supreme Industries Limited –
Independent Director
3. Emami Limited – Independent Director
Nil
1. Godrej Agrovet Limited – Independent
Director
2. Piramal Enterprises Limited – Independent
Director
1. Cipla Limited – Independent Director
2. Network18 Media & Investments Limited –
8 (including 5 as
Chairman)
Independent Director
3. TV18 Broadcast Limited – Independent
Director
4. Larsen & Tourbo Limited – Independent
Director
1. Adani Power Limited – Independent Director
Nil
1. Piramal Enterprises Limited – Independent
Director
2. Wipro Limited – Independent Director
3. CRISIL Limited – Independent Director
1. CCL Products (India) Limited – Independent
Director
2. Divi’s Laboratories Limited – Independent
Director
1. EIH Limited – Non-Executive Director
Nil
Nil
1. Network18 Media & Investments Limited –
Non-Executive Director
2. TV18 Broadcast Limited – Non-Executive
Director
Nil
2
Nil
3 (including 1 as
Chairperson)
3
Nil
1 (as Chairman)
1 (as Chairman)
4
Nil
COMMITTEES
DETAILS OF THE COMMITTEES AND OTHER RELATED INFORMATION ARE PROVIDED HEREUNDER:
Composition of Committees of the Company:
Audit Committee
1.
Human Resources, Nomination and Remuneration Committee
1.
Adil Zainulbhai
(Chairman of the Committee)
2. Yogendra P. Trivedi
3. Dr. Raghunath A. Mashelkar
4. Raminder Singh Gujral
5. Dr. Shumeet Banerji
6. K. V. Chowdary
Corporate Social Responsibility and Governance Committee
1.
Yogendra P. Trivedi
(Chairman of the Committee)
2. Dr. Raghunath A. Mashelkar
3. Dr. Shumeet Banerji
4. Nikhil R. Meswani
Health, Safety and Environment Committee
1.
Hital R. Meswani
(Chairman of the Committee)
2. Dr. Raghunath A. Mashelkar
3. Arundhati Bhattacharya
4. P. M. S. Prasad
5. Pawan Kumar Kapil
Yogendra P. Trivedi
(Chairman of the Committee)
2. Dr. Raghunath A. Mashelkar
3. Adil Zainulbhai
4. Raminder Singh Gujral
5. K. V. Chowdary
Stakeholders’ Relationship Committee
1.
Yogendra P. Trivedi
(Chairman of the Committee)
2. Arundhati Bhattacharya
3. K. V. Chowdary
4. Nikhil R. Meswani
5. Hital R. Meswani
Risk Management Committee
1.
Adil Zainulbhai
(Chairman of the Committee)
2. Dr. Shumeet Banerji
3. K. V. Chowdary
4. Hital R. Meswani
5. P. M. S. Prasad
Alok Agarwal
6.
Chief Financial Officer
Srikanth Venkatachari
Joint Chief Financial Officer
7.
Finance Committee
1.
Mukesh D. Ambani
(Chairman of the Committee)
2. Nikhil R. Meswani
3. Hital R. Meswani
The composition of the Committees is in accordance with the provisions of the Listing Regulations and the Companies Act, 2013.
K. Sethuraman, Group Company Secretary and Chief Compliance Officer and Savithri Parekh, Joint Company Secretary and Compliance
Officer, are the secretaries of all the Committees constituted by the Board.
(1)
(2)
The Directorships, held by Directors as mentioned above, do not include directorship(s) in foreign companies and Section 8 companies under the
Companies Act, 2013.
In accordance with Regulation 26 of the Listing Regulations, Membership(s) / Chairmanship(s) of only Audit Committees and Stakeholders’ Relationship
Committees in all public limited companies have been considered.
* Ceased to be a Director, w.e.f. August 12, 2019. Two meetings were held during his tenure.
# Appointed as a Director, w.e.f. October 18, 2019. Five meetings were held since his appointment.
Video / tele-conferencing facility is offered to facilitate the Directors to participate in the meetings.
The number of Directorship(s) and Committee Membership(s) / Chairmanship(s) of all Directors is / are within the respective limits prescribed under the
Companies Act, 2013 and the Listing Regulations.
190
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Meetings of Committees held during the year and members’ attendance:
Committees of the
Company
Audit
Committee
Human
Resources,
Nomination
and
Remuneration
(HRNR)
Committee
Corporate
Social
Responsibility
and
Governance
Committee
Stakeholders’
Relationship
(SR)
Committee
Health,
Safety and
Environment
Committee
Finance
Committee
Risk
Management
(RM)
Committee
Meetings held
Directors’ Attendance
Mukesh D. Ambani
Mansingh L. Bhakta
Yogendra P. Trivedi
Prof. Dipak C. Jain
Dr. Raghunath A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K. V. Chowdary*
Nita M. Ambani
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
12
NA
NA
12
NA
11
12
12
NA
NA
5
NA
NA
NA
NA
NA
4
NA
NA
4
NA
4
4
4
3
NA
1
NA
NA
NA
NA
NA
4
NA
NA
4
NA
4
NA
NA
3
NA
NA
NA
3
NA
NA
NA
4
NA
NA
4
NA
NA
NA
NA
NA
4
2
NA
4
4
NA
NA
4
NA
NA
NA
NA
4
NA
NA
NA
4
NA
NA
NA
4
3
4
7
7
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
7
7
NA
NA
4
NA
NA
NA
NA
NA
4
NA
3
NA
1
NA
NA
3
4
NA
NA – Not a member of the Committee
* Appointed as a member of committees w.e.f. October 18, 2019 (5 meetings of Audit Committee, 1 meeting of HRNR Committee, 2 meetings of SR Committee
and 1 meeting of RM Committee were held since his appointment).
Procedure at Committee Meetings
The Company’s guidelines relating to
the Board meetings are applicable to the
Committee meetings. Each Committee has
the authority to engage outside experts,
advisors and counsels to the extent it
considers appropriate to assist in its
functioning. Minutes of the proceedings of
Committee meetings are circulated to the
respective committee members and placed
before the Board meetings for noting. The
composition and terms of reference of all
the Committees are in compliance with
the Companies Act, 2013 and the Listing
Regulations, as applicable. The composition
of all the Committees is given in this Report.
Details of Committees
Audit Committee
Terms of Reference of the Committee
inter alia include the following:
• Recommend appointment, remuneration
and terms of appointment of auditors.
• Approval of payment to statutory
auditors, including cost auditors, for any
other services rendered by them.
192
• 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.
• Review and monitor the auditor’s
independence, performance and
effectiveness of audit process.
• 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 nature and
reporting the matter to the Board.
• Review the functioning of the
Whistle-blower mechanism / oversee
the vigil mechanism.
• Review financial statements, in particular
the investments made by the Company’s
unlisted subsidiaries.
The detailed terms of reference of the
Committee is available on the website
of the Company.
General
Members of the Audit Committee possess
requisite qualifications. The representatives
of Statutory Auditors are permanent invitees
to the Audit Committee meetings held
quarterly, to approve financial statements.
The representatives of Statutory Auditors,
Executives from Accounts department,
Finance department, Corporate Secretarial
department and Internal Audit department
attend the Audit Committee meetings.
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 Internal Auditor reports directly to the
Audit Committee.
The Chairman of the Committee was
present at the last Annual General Meeting
held on August 12, 2019.
Meeting Details
Twelve meetings of the Committee
were held during the year, as against
the statutory requirement of four
meetings. The meetings were held
on April 5, 2019; April 17, 2019; April
18, 2019; July 18, 2019; July 19, 2019;
October 14, 2019; October 18, 2019;
October 25, 2019; December 16, 2019;
January 15, 2020; January 17, 2020
and February 17, 2020. 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 the 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.
• Recommend to the Board, all
remuneration, in whatever form, payable
to senior management.
• Review Human Resource policies
and overall human resources
of the Company.
The detailed terms of reference of the
Committee is available on the website
of the Company.
The Chairman of the Committee was
present at the last Annual General Meeting
held on August 12, 2019.
Meeting Details
Four meetings of the Committee were
held during the year, as against statutory
requirement of one meeting. The meetings
were held on April 17, 2019; July 18, 2019;
October 15, 2019 and January 16, 2020.
The details of attendance of Committee
members are given in this Report.
Stakeholders’ Relationship Committee
The terms of reference of the Committee is
available on the website of the Company.
The Chairman of the Committee was
present at the last Annual General Meeting
held on August 12, 2019.
Meeting Details
Four meetings of the Committee were
held during the year, as against statutory
requirement of one meeting. The
meetings were held on April 25, 2019;
August 14, 2019; October 25, 2019 and
January 21, 2020. The details of attendance
of Committee members are given
in this Report.
Investor Grievance Redressal
The number of complaints received and
resolved to the satisfaction of investors
during the year (out of the investor base of
26 lakh) and their break-up is as under:
Type of Complaints
Non-Receipt of Annual Reports
Non-Receipt of Dividend
Non-Receipt of Interest /
Redemption payments
Transfer of securities
Total
No. of
Complaints
115
110
3
383
611
As on March 31, 2020, no complaints
were outstanding.
The response time for attending to
investors’ correspondence during financial
year 2019-20 is as under:
Particulars
Total number of
correspondence
received during
the financial year
2019-20
Replied within 1 to
4 days of receipt
Replied after 4
days of receipt
No.
2,91,909
%
100
2,91,866
99.99
43
0.01
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.
Corporate Social Responsibility and
Governance Committee
The terms of reference of the Committee is
available on the website of the Company.
Meeting Details
Four meetings of the Committee were
held during the year. The meetings were
held on April 18, 2019; August 14, 2019;
October 17, 2019 and January 16, 2020.
The details of attendance of Committee
members are given in this Report.
Risk Management Committee
The terms of reference of the Committee is
available on the website of the Company.
Meeting Details
Four meetings of the Committee were
held during the year, as against statutory
requirement of one meeting. The meetings
were held on April 17, 2019; July 18, 2019;
October 17, 2019 and January 16, 2020.
The details of attendance of Committee
members are given in this Report.
Health, Safety and Environment
Committee
The terms of reference of the Committee is
available on the website of the Company.
Meeting Details
Four meetings of the Committee were
held during the year. The meetings were
held on April 25, 2019; August 14, 2019;
October 25, 2019 and January 21, 2020.
The details of attendance of Committee
members are given in this Report.
Finance Committee
The terms of reference of the Committee is
available on the website of the Company.
Meeting Details
Seven meetings of the Committee were
held during the year. The meetings were
held on April 18, 2019; July 19, 2019;
December 9, 2019; December 16, 2019,
February 3, 2020, February 18, 2020 and
March 31, 2020. The details of attendance
of Committee members are given
in this Report.
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compliance with code of conduct, vision
and strategy, benchmarks established by
global peers etc., which is in compliance
with applicable laws, regulations
and guidelines.
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 the Independent
Directors. The said criteria provides certain
parameters like attendance, acquaintance
with business, communication inter se
between board members, effective
participation, domain knowledge,
DIRECTORS’ REMUNERATION
REMUNERATION POLICY
The Company’s Remuneration Policy for
Directors, Key Managerial Personnel and
other employees is available on the website
of the Company.
The Company’s remuneration policy is
directed towards rewarding performance
based on review of achievements
periodically. The remuneration policy is in
consonance with existing industry practice.
REMUNERATION OF THE MANAGING DIRECTOR AND WHOLE-TIME DIRECTORS FOR THE FINANCIAL
YEAR 2019-20
Name of the Director
Perquisites
Mukesh D. Ambani
Nikhil R. Meswani
Hital R. Meswani
P. M. S. Prasad
Pawan Kumar Kapil
*includes performance linked incentives for the FY 2018-19 paid in FY 2019-20.
0.40
0.02
0.04
0.00
0.29
Salary and
allowances
4.36
6.32
6.31
10.81*
3.60*
Retiral
benefits
0.71
0.37
0.37
0.34
0.15
Commission
payable
9.53
17.28
17.28
-
-
(` in crore)
Stock
Options
-
-
-
-
-
Total
15.00
24.00
24.00
11.15
4.04
In light of the COVID-19 outbreak in India,
which has exacted a huge toll on the
societal, economic and industrial health
of the nation, Shri Mukesh D. Ambani, the
Chairman and Managing Director, has
voluntarily decided to forego his salary.
The Board of Directors noted his decision
to forego his salary until the impact of
COVID-19 abates.
The Chairman and Managing Director
had his salary capped at ` 15 crore since
2008-09 in order to set a personal
example of moderation in managerial
compensation levels. And now, he is
forgoing his salary until the company and
all its businesses are fully back to their
earnings potential. On a similar note, other
Executive Directors have also expressed
their decision to draw remuneration up to
50% of their remuneration entitlement and
as recommended by 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.
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
options to its Non-Executive Directors.
FRAMEWORK FOR MONITORING
SUBSIDIARY COMPANIES
During the year, Reliance Jio Infocomm
Limited (RJIL), Reliance Retail Limited (RRL)
and Reliance Industrial Investments and
Holdings Limited (RIIHL) were material
subsidiaries of the Company, as per Listing
Regulations. Post closure of the financial
year, Jio Platforms Limited and Reliance
Global Energy Services (Singapore) Pte.
Limited have become material subsidiaries
and RIIHL has ceased to be a material
subsidiary of the Company.
In terms of the provisions of Regulation 24(1)
of the Listing Regulations, appointment
of one of the Independent Directors of
the Company on the Board of material
subsidiaries was applicable only to
RJIL and RRL. Prior to RRL and RJIL
becoming material unlisted subsidiaries
of the Company, Prof. Dipak C. Jain was
appointed as an Independent Director
on the Board of RRL and Prof. Dipak C.
Jain, Shri Adil Zainulbhai and Dr. Shumeet
Banerji were appointed as Independent
Directors on the Board of RJIL and they are
continuing as such.
Keeping in view good Corporate
Governance Prof. Dipak C. Jain and Shri
Adil Zainulbhai are also on the Board
of Reliance Retail Ventures Limited, an
unlisted subsidiary of the Company. For
better administration and governance,
key subsidiary companies have voluntarily
appointed Independent Directors on their
respective Boards. The composition and
effectiveness of Boards of subsidiaries is
reviewed by the Company periodically.
Governance framework is also ensured
through appointment of Managerial
Personnel and Secretarial Auditor. A
robust compliance management system
covering all the subsidiaries is also in
place. Guidance is provided to subsidiaries
on matters relating to conduct of Board
meeting, training and familiarisation
programmes for the Independent Directors
on the Board of subsidiaries.
The Company is in compliance with
Regulation 24A of the Listing Regulations.
The Company’s unlisted material
subsidiaries RJIL, RRL and RIIHL undergo
Secretarial Audit. Copy of Secretarial
Audit Reports of these subsidiaries
are available on the website of the
Company. The Secretarial Audit report
of these subsidiaries does not contain
any qualification, reservation or adverse
remark or disclaimer.
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 available on the
website of the Company.
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.
REMUNERATION OF THE NON-EXECUTIVE DIRECTORS FOR THE FINANCIAL YEAR 2019-20
The date and time of the Annual General Meetings held during last three years and the special resolution(s) passed thereat, are as follows:
Name of the 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
K. V. Chowdary**
Nita M. Ambani
Total
*Ceased to be a director w.e.f. August 12, 2019.
**Appointed as a director w.e.f. October 18, 2019.
Sitting Fee
0.02
0.33
0.09
0.31
0.29
0.25
0.17
0.17
0.14
0.07
1.84
Commission
0.42
1.15
1.15
1.15
1.15
1.15
1.15
1.15
0.52
1.15
10.14
(` in crore)
Total
0.44
1.48
1.24
1.46
1.44
1.40
1.32
1.32
0.66
1.22
11.98
Year
2018-19
Date
August 12, 2019
Time
11:00 a.m.
2017-18
July 5, 2018
11:00 a.m.
2016-17
July 21, 2017
11:00 a.m.
Special Resolution(s) Passed
i.
ii.
i.
ii.
Re-appoint Shri P. M. S. Prasad as a Whole-time Director
Re-appoint Shri Raminder Singh Gujral as an Independent Director
Re-appoint Shri Adil Zainulbhai as an Independent Director
Offer or invitation to subscribe to Redeemable Non-Convertible Debentures on private
placement
Re-appoint Shri Pawan Kumar Kapil as a Whole-time Director
Re-appoint Shri Yogendra P. Trivedi as an Independent Director
Re-appoint Prof. Ashok Misra as an Independent Director
Re-appoint Shri Mansingh L. Bhakta as an Independent Director
Re-appoint Prof. Dipak C. Jain as an Independent Director
Re-appoint Dr. Raghunath A. Mashelkar as an Independent Director
Alteration of the Articles of Association of the Company
i.
ii.
iii.
iv.
v.
vi.
vii.
viii. Offer or invitation to subscribe to Redeemable Non-Convertible Debentures on private
194
195
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Corporate Governance Report (contd)
RESOLUTION(S) PASSED THROUGH
POSTAL BALLOT:
No postal ballot was conducted during
the financial year 2019-20. 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. The Company
has made full disclosure of transactions with
the related parties as set out in Note 32 of
Standalone Financial Statements, forming
part of the Annual Report.
There were no materially significant
related party transactions which could
have potential conflict with interest of the
Company at large.
The Company’s Policy on Materiality of
Related Party Transactions and on dealing
with Related Party Transactions is available
on the website of the Company.
196
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 8, 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 5, 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 SEBI 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 filed an appeal against
the said Order before SAT. SAT has
stayed the direction on disgorgement
until the disposal of the appeal.
The prohibition from dealing in equity
derivatives in the Futures and Options
segment expired on March 23, 2018.
The appeal has been heard by SAT
and is reserved for orders.
(b) SEBI had also issued a Show Cause
Notice (SCN) 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 SEBI Act, 1992. The Company
has made written submissions in
response to the SCN, including on
June 15, 2018, September 12, 2018
and September 20, 2019. Hearings
were held before the Adjudicating
Officer on September 11, 2018,
January 24, 2020 and March 12, 2020
and the matter is part-heard.
(iii) SEBI had issued a show cause
notice dated November 26, 2015
to the Company alleging that, the
Company had not provided the
information sought by SEBI regarding
categorization of the Directors of the
Company as on January 07, 2000.
The Adjudicating Officer, vide Order
dated February 28, 2018, disposed of
the adjudication proceedings initiated
against the Company without imposition
of any penalty.
WHISTLE-BLOWER POLICY
The Company promotes safe, ethical
and compliant conduct of 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 encouraged to report
violations of applicable laws and regulations
and the Code of Conduct – without fear of
any retaliation. 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 and there
was no instance of denial of access to the
Audit Committee. The Vigil Mechanism and
Whistle-blower Policy is available on the
website of the Company.
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. Please refer
Human Capital section of Management
Discussion and Analysis Report,
for more details.
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 the 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’. They are also
available on the website of the Company.
News releases, presentations: Official
news releases and official media releases
are sent to Stock Exchanges and are also
available on the website of the Company.
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 available on the
website of the Company, 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 the members and others
entitled thereto. The Management
Discussion and Analysis Report forms part
of the Annual Report. The Annual Report is
also available in downloadable form on the
website of the Company.
Chairman’s Communiqué: Printed copy of
the Chairman’s speech is distributed to the
shareholders at the Annual General Meeting.
A copy of the Chairman’s speech is also sent
to all the shareholders, whose e-mail IDs are
registered with the Company / Depository
Participants. The document is also available
on the website of the Company.
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@kfintech.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.
GENERAL SHAREHOLDER
INFORMATION
ANNUAL GENERAL MEETING
Wednesday, July 15, 2020 at 2:00 p.m.
through Video Conferencing / Other Audio
Visual Means as set out in the Notice
convening the Annual General Meeting.
DIVIDEND PAYMENT DATE
Between July 16, 2020 and July 22, 2020
for electronic transfer to the shareholders
who have furnished bank account details to
the Company / its Registrar.
Physical warrants shall be dispatched to
the shareholders, who have not registered
their ECS mandates, upon normalisation of
postal services.
FINANCIAL YEAR
April 1 to March 31
FINANCIAL CALENDAR
(TENTATIVE) RESULTS FOR THE
QUARTER ENDING
June 30, 2020 – Third week of July, 2020
September 30, 2020 – Third week
of October, 2020
December 31, 2020 – Fourth week
of January, 2021
March 31, 2021 – Fourth week of April, 2021
Annual General Meeting – June / July, 2021
197
Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Corporate Governance Report (contd)
LISTING ON STOCK EXCHANGES
Equity Shares
BSE Limited (BSE)
Phiroze Jeejeebhoy Towers, Dalal Street,
Mumbai - 400 001
Domestic Custodian
ICICI Bank Limited
Empire Complex, 1st Floor, 414, Senapati
Bapat Marg, Lower Parel (West),
Mumbai - 400 013
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
STOCK MARKET PRICE DATA
PAYMENT OF LISTING FEES
Annual listing fee for the financial year
2020-21 has been paid by the Company
to BSE and NSE. Annual maintenance and
listing agency fee for the calendar year
2020 has been paid by the Company to
Luxembourg Stock Exchange.
PAYMENT OF DEPOSITORY FEES
Annual Custody / Issuer fee is being paid by
the Company within the due date based on
invoices received from the Depositories.
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, 2020,
is ` 46.27 crore.
CREDIT RATING
The Company’s financial discipline and
prudence is reflected in the strong credit
ratings ascribed by rating agencies as
given below. There has been no revision
in credit ratings during the financial year
2019-20. The details of the Credit Rating are
mentioned in Management Discussion and
Analysis Report.
UTILISATION OF FUNDS
RAISED THROUGH ISSUE OF
NON-CONVERTIBLE DEBENTURES
During the financial year 2019-20 no
funds were raised through issue of
Non-Convertible Debentures.
DEBENTURE TRUSTEE
Axis Trustee Services Limited
The Ruby, 2nd Floor, SW,
29, Senapati Bapat Marg,
Dadar (West), Mumbai – 400 028
Tel: +91-22-62300451
Fax: +91-22-62300700
E-mail: debenturetrustee@axistrustee.com;
complaints@axistrustee.com
Website Address: www.axistrustee.com
BSE SENSEX VS RIL SHARE PRICE
BSE SENSEX
RIL Close Price
NSE NIFTY VS RIL SHARE PRICE
NSE NIFTY
RIL Close Price
Month
April 2019
May 2019
June 2019
July 2019
August 2019
September 2019
October 2019
November 2019
December 2019
January 2020
February 2020
March 2020
National Stock Exchange of India Limited (NSE)
Low Price (`)
1,321.00
1,227.50
1,248.65
1,162.40
1,095.30
1,172.65
1,281.30
1,422.55
1,508.05
1,407.20
1325.00
875.65
High Price (`)
1,412.40
1,417.50
1,374.25
1,300.00
1,304.45
1,335.75
1,489.65
1,584.15
1,617.55
1,609.00
1,508.00
1,369.00
Volume (No.) High Price (`)
1,410.90
16,69,46,655
1,417.00
24,52,03,012
1,373.00
13,32,79,066
1,299.80
15,79,81,147
1,304.00
23,91,04,397
1,336.00
18,15,20,211
1,489.50
16,42,71,981
1,584.00
16,70,40,786
1,617.80
17,14,67,991
1,609.50
19,98,39,592
1,507.95
18,37,80,216
1,368.75
45,49,78,169
BSE Limited (BSE)
Low Price (`)
1,321.60
1,227.00
1,248.05
1,163.00
1,095.65
1,173.25
1,281.20
1,423.35
1,509.10
1,407.45
1,325.00
875.70
[Source: This information is compiled from the data available on the websites of BSE and NSE]
198
Volume (No.)
1,15,01,774
1,97,31,034
70,48,484
85,47,940
1,10,67,323
89,95,149
75,03,066
80,62,936
1,01,31,329
83,79,170
98,91,342
23,45,49,195
SHARE PRICE PERFORMANCE IN COMPARISON TO BROAD BASED INDICES – BSE SENSEX AND NSE NIFTY AS
ON MARCH 31, 2020
FY2019-20
2 Years
3 Years
5 Years
10 Years
RIL Share
Performance on BSE
Sensex
Performance
RIL Share
Performance on NSE
NIFTY
Performance
-18.39%
26.01%
68.66%
169.78%
107.03%
-23.80%
-10.62%
-0.51%
5.40%
68.12%
-18.30%
26.18%
68.64%
169.67%
107.35%
-26.03%
-14.99%
-6.28%
1.26%
63.79%
RIL’s share price on BSE and NSE has been adjusted for the year 2017 and earlier years, on account of issue of bonus shares in
the FY 2017-18.
REGISTRARS AND TRANSFER
AGENTS
KFin Technologies Private Limited
(Formerly known as Karvy Fintech
Private Limited)
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@kfintech.com
Website: www.kfintech.com
SHARE TRANSFER SYSTEM
SEBI has mandated that, effective April 1,
2019, no share can be transferred in
physical mode. Hence, the Company has
stopped accepting any fresh lodgement
of transfer of shares in physical form.
The Company had sent communication
to the shareholders encouraging them
to dematerialise their holding in the
Company. The communication, inter alia,
contained procedure for getting the shares
dematerialised. Shareholders holding
shares in physical form are advised to avail
the facility of dematerialisation.
During the year, the Company had obtained,
on half-yearly basis, a certificate, from a
Company Secretary in Practice, certifying
that all certificates have been issued within
thirty days of the date of lodgement of the
transfer (for cases lodged prior to April
1, 2019), sub-division, consolidation and
renewal as required under Regulation
40(9) of the Listing Regulations and filed
a copy of the said certificate with the
Stock Exchanges.
Trading in equity shares of the Company is
permitted only in dematerialised form.
199
Naye India Ka Naya JoshAPR 2019MAR 2020MAY 2019JUN 2019JUL 2019AUG 2019BSERILSEP 2019OCT 2019NOV 2019DEC 2019JAN 2020FEB 202042,00040,00038,00036,00034,00032,00030,00028,0001,6008001,5001,4001,3001,2001,1001,000900RILNSEAPR 2019MAR 2020MAY 2019JUN 2019JUL 2019AUG 2019SEP 2019OCT 2019NOV 2019DEC 2019JAN 2020FEB 202014,00013,00012,00011,00010,0009,0008,0001,6001,0001,5001,4001,3001,2001,100Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview * As per disclosure under Regulation 30(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, furnished by the promoters.
(B) BONUS ISSUES OF FULLY PAID-UP EQUITY SHARES
Corporate Governance Report (contd)
SHAREHOLDING PATTERN AS ON MARCH 31, 2020
Category of shareholder
Sr.
No.
(A) Shareholding of Promoter and
Promoter Group
Indian
(1)
(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
Promoter and Promoter Group
(1)
(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)
52*
0
52
1,819
26,30,300
26,32,119
309,80,84,968
0
309,80,84,968
235,51,81,559
73,46,36,787
308,98,18,346
0
1
1
0
15,13,64,196
15,13,64,196
48.87
0
48.87
37.15
11.59
48.74
0
2.39
2.39
26,32,172
633,92,67,510
100.00
CATEGORY-WISE SHAREHOLDING (%)
GDR Holders
Promoters
Non-Institutions
Institutions
2.39
11.59
48.87
37.15
DISTRIBUTION OF SHAREHOLDING BY SIZE AS ON MARCH 31, 2020
Category (Shares)
Up to 500
501 - 1000
1001 - 5000
5001 - 10000
10001 - 20000
Above 20000
Total
DEMATERIALISATION OF SHARES
Mode of Holding
NSDL
CDSL
Physical
Total
200
Holders
24,20,204
1,11,888
87,135
7,516
2,788
2,641
26,32,172
Shares % of total Shares
19,66,29,029
7,97,76,788
17,15,81,459
5,18,42,226
3,85,67,592
580,08,70,416
633,92,67,510
3.10
1.26
2.71
0.82
0.61
91.50
100.00
%
95.95
2.97
1.08
100.00
Dividend per
Equity Share of
` 10/- each (`)
7.00
8.00
8.50
9.00
9.50
10.00
10.50
11.00
6.00
6.50
Ratio
3:5
6:10
1:1
1:1
1:1
BUILD-UP OF EQUITY SHARE CAPITAL
The statement showing build-up of equity share capital is available on the website
of the Company.
CORPORATE BENEFITS TO INVESTORS
(A) DIVIDEND DECLARED FOR THE LAST 10 YEARS
Financial Year
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
Date of Dividend
Declaration
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)
August 12, 2019
Financial Year
1980-81
1983-84
1997-98
2009-10
2017-18
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 2019-20 is given below:
Particulars
Shares (Nos.)
Value (` in crore)
BSE
13,98,416
157.43
NSE
99,81,430
1,314.76
Total
113,79,846
1,472.19
[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,
2020 represent 15,13,64,196 equity shares
constituting 2.39% 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
The Global Depository Receipts of the
Company are listed on Luxembourg
Stock Exchange and are traded
on the International Order Book
(London Stock Exchange) and amongst
qualified institutional investors on the
over-the-counter market in the United
States of America.
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 available on the website
of the Company.
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 Management
Discussion and Analysis 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.
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Corporate Governance Report (contd)
• 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, are
taken based on various factors including
market conditions, physical inventories,
macro-economic situation. These
decisions and execution are done in line
with the Board approved Commodities
Risk Management framework. The Risk
Management Committee has oversight on
all hedging actions taken.
More details on Risk Management
are covered under the Enterprise Risk
Management section of the Management
Discussion and Analysis Report.
Exposure of the Company to commodity risks, which are material is as
under:
Exposure
towards the
particular
commodity
(` in crore)
Exposure in
Quantity terms
towards the
particular
commodity (in
1000 Metric
Ton)
2,10,093
1,25,629
72,190
30,807
64,984
15,584
38,419
35,731
5,783
6,206
21,625
4,96,481
2,604
1,33,174
% of such exposure hedged through
commodity derivatives
Total
Domestic
market
International
market
OTC Exchange
OTC Exchange*
-
-
-
-
-
-
-
-
-
-
-
-
23%
31%
18%
14%
41%
45%
6%
46%
52%
-
-
-
-
-
-
-
-
-
Commodity
Name
Crude
Middle
Distillates
Light
Distillates
Polymer
Petchem
Intermediate
Polyester
Total
*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
Hazira Manufacturing Division
Village Mora, P. O. Bhatha, Surat-Hazira
Road, Surat – 394 510, Gujarat, India
Hoshiarpur Manufacturing
Division
Dharamshala Road, V. P. O. Chohal, District
Hoshiarpur – 146 024, Punjab, India
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
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
202
Silvassa Manufacturing Division
342, Kharadpada, P. O. Naroli – 396 235,
Union Territory of Dadra and
Nagar Haveli, India
Vadodara Manufacturing Division
P. O. Petrochemicals,
Vadodara – 391 346, Gujarat, India
Vadodara Composites Division
Vadodara - Halol Expressway,
Vill - Asoj, Taluka – Waghodia,
Vadodara – 391 510, Gujarat, India
OIL & GAS
KG D6 Onshore Terminal
Village Gadimoga, Tallarevu Mandal,
East Godavari District – 533 463,
Andhra Pradesh, India
Coal Bed Methane Project (CBM)
Village & P. O.: Lalpur, Tehsil: Burhar, District
Shahdol, Madhya Pradesh – 484 110, India
TEXTILES
Naroda Manufacturing Division
103 / 106, Naroda Industrial Estate, Naroda,
Ahmedabad – 382 330, Gujarat, India
ADDRESS FOR
CORRESPONDENCE
FOR SHARES / DEBENTURES HELD
IN PHYSICAL FORM
KFin Technologies Private Limited
(Formerly known as Karvy Fintech
Private Limited)
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@kfintech.com
Website: www.kfintech.com
FOR SHARES / DEBENTURES
HELD IN DEMAT FORM
Investors’ concerned Depository
Participant(s) and / or KFin Technologies
Private Limited.
ANY QUERY ON THE ANNUAL
REPORT
Smt. Savithri Parekh
Joint Company Secretary and
Compliance Officer
Reliance Industries Limited
3rd Floor, Maker Chambers IV,
222, Nariman Point,
Mumbai - 400 021
E-mail: rilagm@ril.com
TRANSFER OF UNPAID /
UNCLAIMED AMOUNTS
AND SHARES TO INVESTOR
EDUCATION AND PROTECTION
FUND
During the year, the Company has credited
` 24.89 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, 2020
is ` 242 crore.
In accordance with the provisions of the
Companies Act, 2013, the Company has
transferred 18,46,438 equity shares of
` 10/- each, to the credit of IEPF Authority,
on August 7, 2019, 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 12, 2019. 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 2012-13.
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. August 12, 2019).
Details of shares transferred to IEPF
Authority during financial year 2019-20
are also available on the website
of the Company.
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 2012-13 and thereafter:
FY ended
March 31, 2013
March 31, 2014
March 31, 2015
March 31, 2016
March 31, 2017
March 31, 2018
March 31, 2019
Declaration Date
Due Date
June 6, 2013
June 18, 2014
June 12, 2015
March 10, 2016
July 21, 2017
July 5, 2018
August 12, 2019
July 12, 2020
July 24, 2021
July 18, 2022
April 15, 2023
August 26, 2024
August 4, 2025
September 11, 2026
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
Aggregate number of shareholders and the outstanding shares in the
suspense account lying as on April 1, 2019
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)
Add: Number of shareholders and aggregate number of shares transferred
to the Unclaimed 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, 2020
Demat
Physical
No. of
shareholders
No. of
equity shares
No. of
shareholders
(phase-wise
transfers)
No. of
equity shares
96
2,616
90,058
82,59,125
0
0
0
0
0
0
4,228
5,68,598
425
61,630
7,366
3,19,389
96
2,616
78,889
74,32,768
The voting rights on the shares in the suspense account shall remain frozen till the rightful owner claim the shares.
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WEBLINKS FOR THE MATTERS REFERRED IN THIS REPORT ARE AS UNDER:
COMPLIANCE OF CORPORATE GOVERNANCE REQUIREMENTS SPECIFIED IN REGULATION 17 TO 27 AND
REGULATION 46(2)(b) TO (i) OF LISTING REGULATIONS
Particulars
Website link
Policies and Code
http://www.ril.com/DownloadFiles/IRStatutory/Remuneration-Policy-for-Directors.pdf
https://www.ril.com/DownloadFiles/IRStatutory/Code-of-Conduct.pdf
http://www.ril.com/DownloadFiles/IRStatutory/ourcode.pdf
https://www.ril.com/InvestorRelations/Downloads.aspx
Code of Conduct
Our Code
Familarisation Programme for Independent
Directors
Remuneration Policy for Directors,
Key Managerial Personnel and other
employees
Policy for selection of Directors and
determining Directors’ independence
Policy for determining Material Subsidiaries http://www.ril.com/DownloadFiles/IRStatutory/Material-Subsidiaries.pdf
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
Reports
http://www.ril.com/DownloadFiles/IRStatutory/Policy-for-Selection-of-Directors.pdf
http://www.ril.com/DownloadFiles/IRStatutory/Policy-on-Materiality-of-RPT.pdf
http://www.ril.com/DownloadFiles/IRStatutory/MaterialityPolicy.pdf
Quarterly, Half-yearly and Annual Financial
Results (from 2002 to 2020)
Presentation to institutional investors and
analysts (from 1999 to 2020)
Annual Report (from 1976 to 2020)
Chairman’s Communication (from 2002 to
2019)
Sustainability Reports
Shareholder Information
Composition of Board of Directors and
Profile of Directors
Composition of various Committees of the
Board and their terms of reference
ESOS Disclosure under SEBI (Share Based
Employee Benefits) Regulations, 2014 as
on March 31, 2020
Details of unpaid and unclaimed
amounts lying with the Company as on
date of last Annual General Meeting
(i.e. August 12, 2019) and details of shares
transferred to IEPF during financial year
2019-20.
Secretarial Audit Report of Material
Unlisted Subsidiary
Build-up of Equity Share Capital
Shareholders’ Referencer
Investor Contacts
http://www.ril.com/InvestorRelations/FinancialReporting.aspx
http://www.ril.com/InvestorRelations/FinancialReporting.aspx
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/OurCompany/Leadership/BoardOfDirectors.aspx
http://www.ril.com/OurCompany/Leadership/BoardCommittees.aspx
https://www.ril.com/DownloadFiles/IRStatutory/ESOS-2006-Disclosure-2019-20.pdf
https://www.ril.com/DownloadFiles/IRStatutory/ESOS-2017-Disclosure-2019-20.pdf
http://www.ril.com/InvestorRelations/ShareholdersInformation.aspx
http://www.ril.com/DownloadFiles/IRStatutory/Secretarial-Audit-Reports-of-material-subsidiaries.pdf
https://www.ril.com/DownloadFiles/IRStatutory/Build-up-of-Equity-Share-Capital.pdf
http://www.ril.com/DownloadFiles/IRForms/Shareholders-Referencer.pdf
https://www.ril.com/InvestorRelations/Investor-Contacts.aspx
Sr.
No.
Particulars
Regulation
1
Board of Directors
17
Compliance
Status
Yes / No / N.A.
Yes
2
3
4
5
6
7
8
Maximum Number of
Directorships
Audit Committee
Nomination and Remuneration
Committee
Stakeholders Relationship
Committee
17A
18
19
20
Risk Management Committee
21
Vigil Mechanism
Related party transactions
22
23
Yes
Yes
Yes
Yes
Yes
Yes
Yes
9
Subsidiaries of the Company
24
Yes
Key Compliance observed
• 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 Chief Executive Officer and Chief
Financial Officer
• 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
• Role of the Committee
• Composition
• Meetings
• Role of the Committee
• Vigil Mechanism for Directors and employees
• Adequate safeguards against victimisation
• 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 subsidiaries
• Review of financial statements and investments of subsidiaries 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 subsidiaries are
placed at the meeting of the Board of Directors
10
Secretarial Audit
24A
Yes
• Annual Secretarial Audit Report and Annual Secretarial
Compliance Report
• Secretarial Audit Report of material unlisted subsidiaries
incorporated in India
204
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Corporate Governance Report (contd)
Sr.
No.
11
12
Particulars
Regulation
Obligations with respect to
Independent Directors
25
Compliance
Status
Yes / No / N.A.
Yes
26
Yes
Obligations with respect to
employees including Senior
Management, Key Managerial
Personnel, Directors and
Promoters
13
Other Corporate Governance
requirements
27
Yes
14
Website
46(2)(b) to (i)
Yes
Key Compliance observed
• Maximum directorships and tenure
• Meetings of Independent Directors
• Cessation and appointment of Independent Directors
• Familiarisation of Independent Directors
• Declaration from Independent Director that he / she meets the
criteria of independence
• Directors and Officers insurance for all the Independent Directors
• Memberships / Chairmanships in Committees
• Affirmation on compliance of Code of Conduct by Directors and
Senior Management
• Disclosure of shareholding by Non-Executive Directors
• Disclosures by Senior Management about potential
conflicts of interest
• No agreement with regard to compensation or profit sharing in
connection with dealings in securities of the Company by Key
Managerial Personnel, Director and Promoter
• Compliance with discretionary requirements
• Filing of quarterly, half-yearly and yearly 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
ANNUAL SECRETARIAL COMPLIANCE REPORT
Pursuant to the SEBI circular no. CIR/CFD/ CMD1/27/2019 dated February 8, 2019, the Company has obtained an Annual Secretarial
Compliance Report from Dr. K. R. Chandratre, Practising Company Secretary, confirming compliance of SEBI Regulations / Circulars /
Guidelines issued thereunder and applicable to the Company. There are no observations or adverse remarks in the said report.
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 SEBI, Ministry of Corporate
Affairs, or any such other Statutory Authority, as stipulated under Regulation 34(3) of the Listing Regulations, is attached to this Report.
CEO AND CFO CERTIFICATION
The Chairman and Managing Director (CMD) and the Chief Financial Officer (CFO) 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 CMD and the CFO 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 LLP, 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, the affirmation
that they have complied with the ‘Code of Conduct’ and ‘Our Code’ in respect of the financial year 2019-20.
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 30, 2020
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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 - 400 021,
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 2020, 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 Director
Mukesh Dhirubhai Ambani
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
Veerayya Chowdary Kosaraju
DIN
00001695
00001879
00228513
00074119
06646490
07175393
02787784
02011213
03115198
00001620
00001623
00012144
02460200
08485334
Date of appointment
in the Company
01.04.1977
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
18.10.2019
Ensuring the eligibility of 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
Place: Pune
Date: 30 April 2020
UDIN: F001370B000192297
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 (the Company) for the year ended
March 31, 2020 and to the best of our knowledge and belief:
i.
ii.
these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
these statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting
standards, applicable laws and regulations.
There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent,
illegal or violative of the Company’s Code of Conduct.
We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the
effectiveness of Company’s internal control systems pertaining to financial reporting. We have not come across any reportable
deficiencies in the design or operation of such internal controls.
2.
3.
4.
We have indicated to the Auditors and the Audit Committee that:
i.
ii.
there are no significant changes in internal controls 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 30, 2020
208
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Corporate Governance Report (contd)
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 (AS AMENDED)
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, 2020. This report 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.
6.
7.
8.
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.
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.
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.
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, 2020, referred to in paragraph 1 above.
OTHER MATTERS AND RESTRICTION ON USE
10.
This Report 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 Report 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 Report for events and circumstances
occurring after the date of this Report.
For D T S & Associates LLP
Chartered Accountants
ICAI Firm Reg Number: 142412W/ W100595
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Reg Number: 324982E/E300003
per T. P. Ostwal
Partner
Membership No.: 030848
UDIN: 20030848AAAAAO8055
Place: Mumbai
Date: April 30, 2020
per Vikas Kumar Pansari
Partner
Membership No.: 093649
UDIN: 20093649AAAAAP4660
Place: Mumbai
Date: April 30, 2020
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Dear Members,
The Board of Directors are pleased to present the Company’s Forty-third Annual Report (Post–IPO) and the Company’s audited financial
statements for the financial year ended March 31, 2020.
FINANCIAL RESULTS
The Company’s financial performance (standalone and consolidated) for the year ended March 31, 2020 is summarised below:
STANDALONE
CONSOLIDATED
2019-20
2018-19
2019-20
2018-19
`
crore
US$
million*
`
crore
US$
million*
`
crore
US$
million*
`
crore
US$
million*
PROFIT BEFORE TAX (before exceptional item)
44,561
5,889
47,367
6,849
58,050
7,672
55,227
Less: Current Tax
Deferred Tax
7,200
2,213
952
292
9,440
2,764
1,365
399
8,630
5,096
1,141
673
11,683
3,707
7,986
1,689
536
PROFIT FOR THE YEAR (before exceptional item)
35,148
4,645
35,163
5,085
44,324
5,858 39,837
5,761
Less: Exceptional Item (net of tax)^
4,245
561
-
-
4,444
587
-
-
PROFIT FOR THE YEAR
30,903
4,084 35,163
5,085
39,880
5,271 39,837
5,761
Less: Net Profit attributable to Non-Controlling Interest
-
-
-
-
526
70
249
36
Net Profit Attributable to Owners of the Company
30,903
4,084
35,163
5,085
39,354
5,201 39,588
5,725
Add: Balance in Retained Earnings
26,808
4,815
30,051
5,283
12,330
2,038
11,840
1,967
Less: Pursuant to Scheme of Arrangement/Others
-
-
-
-
8,496
1,123
654
95
Sub-Total
LESS: APPROPRIATION
Transferred to Statutory Reserve
Transferred to General Reserve
Transferred to Capital Redemption Reserve
Transferred to Debenture Redemption Reserve
Transferred to Special Economic Zone Reinvestment Reserve
Dividend on Equity Shares
Tax on dividend
Closing Balance
57,711
8,899 65,214
10,368
43,188
6,116 50,774
7,597
-
-
-
-
5,500
3,852
732
-
-
-
-
727
509
97
-
-
30,000
4,338
-
4,124
-
3,554
728
-
596
-
514
105
77
-
40
15
5,500
3,852
732
10
-
5
2
727
509
97
15
2
30,000
4,338
-
-
4,147
600
-
3,554
728
-
514
105
47,627
7,566 26,808
4,815
32,972
4,766
12,330
2,038
* 1 US$ = ` 75.665 Exchange Rate as on March 31, 2020 (1 US$ = ` 69.155 as on March 31, 2019)
^ Please refer note no. 30.3 of the Standalone Financial Statement and note no.28.2 of the Consolidated Financial Statement.
RESULTS OF OPERATIONS AND
THE STATE OF COMPANY’S
AFFAIRS
THE HIGHLIGHTS OF THE
COMPANY’S PERFORMANCE
(STANDALONE) FOR THE YEAR
ENDED MARCH 31, 2020 ARE AS
UNDER:
• Value of sales and services
decreased by 9.1% to ` 3,65,202 crore
(US$ 48.3 billion).
• Exports decreased by 9.6% to
` 2,02,830 crore (US$ 26.8 billion).
• EBITDA (before exceptional Item)
decreased by 1.9% to ` 66,394 crore
(US$ 8.8 billion).
• Profit Before Tax (before exceptional
Item) decreased by 5.9% to
` 44,561 crore (US$ 5.9 billion).
• Cash Profit decreased by 2.9% to
` 47,089 crore (US$ 6.2 billion).
• Net Profit (before exceptional Item) was
stable at ` 35,148 crore (US$ 4.6 billion).
• Gross Refining Margin stood
at US$ 8.9/bbl.
FINANCIAL PERFORMANCE
REVIEW AND ANALYSIS
(CONSOLIDATED)
The Company achieved a consolidated
revenue of ` 6,59,205 crore
(US$ 87.1 billion), an increase of 5.4%
as compared to ` 6,25,212 crore in the
previous year. Increase in revenue is
primarily on account of higher revenues
from the Consumer businesses. Digital
Services business and Retail business
recorded an increase of 40.7% and 24.8%,
respectively, in revenue as compared to
previous year. Revenues for the Refining
and Petrochemicals business declined in
line with fall in average oil and product
prices for the year. Average Brent oil price
declined 13% y-o-y, while realisations for
key petrochemical products declined
by 15%-32% y-o-y. This was partially
offset by higher crude throughput and
petrochemicals production during the year.
DIVIDEND
The Board of Directors has recommended
a dividend of ` 6.50 (Six rupees and
Fifty paise only) per equity share of
` 10/- (Ten rupees) each fully paid-up of
the Company (last year ` 6.50 per equity
share of ` 10/- each). Pro-rata dividend
shall be paid in proportion to face value
paid-up on the partly paid shares. Dividend
is subject to approval of members at the
ensuing Annual General Meeting (AGM)
and shall be subject to deduction of income
tax at source.
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 https://www.ril.com/
DownloadFiles/IRStatutory/Dividend-
Distribution-Policy.pdf
DETAILS OF MATERIAL CHANGES
FROM THE END OF THE
FINANCIAL YEAR TILL THE DATE
OF THIS REPORT
Material changes and commitments
affecting the financial position of the
Company between the end of the financial
year and date of this report are given below.
GLOBAL PANDEMIC – COVID-19
The outbreak of Coronavirus (COVID-19)
pandemic globally and in India is causing
significant disturbance and slowdown
of economic activity. In many countries,
businesses are being forced to cease or
limit their operations for long or indefinite
periods of time. Measures taken to contain
the spread of the virus, including travel
bans, quarantines, social distancing
and closures of non-essential services
have triggered significant disruptions to
businesses worldwide, resulting in an
economic slowdown.
COVID-19 is significantly impacting
business operation of the companies, by
way of interruption in production, supply
chain disruption, unavailability of personnel,
closure / lockdown of production facilities
etc. On March 24, 2020, the Government
of India ordered a nationwide lockdown
for 21 days which further got extended till
May 3, 2020 to prevent community spread
of COVID-19 in India resulting in significant
reduction in economic activities. Further,
during March 2020 / April 2020, there
has been significant volatility in oil prices,
resulting in uncertainty and reduction
in oil prices.
In assessing the recoverability of
Company’s assets such as investments,
loans, intangible assets, Goodwill,
Trade receivable etc. the Company
has considered internal and external
information. The Company has performed
sensitivity analysis on the assumptions
used basis the internal and external
information / indicators of future economic
conditions and the Company expects to
recover the carrying amount of the assets.
RIGHTS ISSUE OF EQUITY SHARES
The Board of Directors of the Company
has approved the issue of equity shares
of ` 10/- each of the Company on rights
basis to eligible equity shareholders of
the Company at an issue price of ` 1,257/-
per fully paid-up equity share (including a
premium of ` 1,247/- per equity share), 25%
of the issue price viz. ` 314.25 per equity
share will be payable on application, in the
ratio of 1 equity share for every 15 equity
shares held by eligible equity shareholders
as on a ‘record date’.
ISSUE OF DEBENTURES
The Company has issued and allotted
on private placement basis, unsecured,
redeemable, non-convertible Debentures
(NCDs) aggregating ` 11,295 crore from
the end of the financial year till the date
of this report.
SCHEME OF AMALGAMATION OF
RELIANCE HOLDING USA INC.,
RELIANCE ENERGY GENERATION
AND DISTRIBUTION LIMITED WITH
THE COMPANY
The Company has filed a composite
scheme of amalgamation and a plan of
merger amongst Reliance Holding USA Inc.
(“RHUSA”), Reliance Energy Generation
and Distribution Limited (“REGDL”) and the
Company (the “Scheme”), which inter alia
provides for merger of RHUSA with REGDL
and merger of REGDL with the Company
under Sections 230 to 232 read with
Section 234 and other applicable provisions
of the Companies Act, 2013 (‘the Act’),
with the Hon’ble National Company Law
Tribunal, Mumbai Bench, for its approval.
212
213
Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Board’s Report (contd)
SCHEME OF ARRANGEMENT
BETWEEN THE COMPANY AND
RELIANCE O2C LIMITED
The Board of Directors of the Company
has approved a scheme of arrangement
under Sections 230 to 232 and other
applicable provisions of the Act, between
(i) the Company, its shareholders and
creditors, and (ii) Reliance O2C Limited
and its shareholders and creditors (the
“Scheme”). Reliance O2C Limited is a
company incorporated under the Act, on
January 24, 2019. The Scheme inter alia
provides for transfer of oil-to-chemicals
(“O2C”) undertaking of the Company to
Reliance O2C Limited as a going concern
on slump sale basis for a lump sum
consideration equal to the income tax
net worth of the O2C undertaking as on
the appointed date of the Scheme. O2C
undertaking of the Company comprises
entire oil-to-chemicals business of
the Company consisting of refining,
petrochemicals, fuel retail and aviation fuel
(majority interest only) and bulk wholesale
marketing businesses together with its
assets and liabilities. The Scheme is
subject to necessary statutory / regulatory
approvals under applicable laws including
approval of the Stock Exchanges and the
National Company Law Tribunal.
AGREEMENTS WITH FACEBOOK,
INC.
The Company, Jio Platforms Limited
(“JPL”) and Facebook, Inc. (“Facebook”)
signed binding agreements for an
investment of ` 43,574 crore by Facebook
into JPL, which values JPL at ` 4.62
lakh crore pre-money enterprise value
(US$ 65.95 billion, assuming a conversion
rate of ` 70 to a US$) and post-money
equity value of ` 4.36 crore. This investment
will translate into a 9.99% equity stake of
Facebook in JPL on a fully diluted basis.
Concurrent with the investment, JPL,
Reliance Retail Limited (“Reliance Retail”)
and WhatsApp Inc. have also entered into
a commercial partnership agreement to
further accelerate Reliance Retail’s digital
commerce business. JioMart platform
would be integrated with WhatsApp Inc. to
ensure that consumers are able to access
the nearest kiranas who can provide
products and services to their homes by
214
transacting with JioMart using WhatsApp.
The transaction is subject to regulatory and
other customary approvals.
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.
BUSINESS OPERATIONS
/ PERFORMANCE OF THE
COMPANY AND ITS MAJOR
SUBSIDIARIES
The developments in business operations
/ performance of the Company and its
major subsidiaries consolidated with the
Company are as below:
RETAIL BUSINESS
Reliance Retail achieved a turnover of
` 1,62,936 crore in FY 2019-20, registering
a growth of 24.8% y-o-y. EBITDA margin
improved to 6.6% vs 5.3% last year. The
business delivered an EBIT of ` 8,263 crore
in FY 2019-20, registering a growth
of 49% y-o-y. The year has witnessed
consistent and sustainable performance at
a significant scale being built up through
incremental numbers on all counts. Reliance
Retail has added 30% of store space within
FY 2019-20 itself with the addition of over
1,500 stores. Reliance Retail operated
11,784 retail stores in over 7,000 towns and
cities covering an area of 28.7 million sq. ft.
as on March 31, 2020. Reliance Retail
operated 519 petro retail outlets as on
March 31, 2020.
DIGITAL SERVICES
Digital service business achieved revenue
of ` 68,642 crore, an increase of 40.7%
y-o-y. Segment EBITDA was at `22,517
crore for the year, as against `15,341
crore in previous year. Segment EBITDA
increased by 46.8% with EBIT margin of
21%. The Digital business made net addition
of 81 million mobility subscribers during
the year, with year-end mobile subscribers’
base at 387.5 million. This was driven by
strong adoption of Jio’s services across
the country reflected by healthy customer
engagement metrics on data and voice.
Pursuant to the Scheme of Arrangement
amongst Reliance Jio Infocomm Limited
and certain class of its creditors, approved
by the Hon’ble National Company Law
Tribunal, Ahmedabad bench, identified
liabilities of ` 1,04,365 crore stood
transferred to the Company for an equal
amount of consideration.
In August 2019, Jio and Microsoft Corp.
embarked on a unique, comprehensive,
long-term strategic relationship aimed
at accelerating the digital transformation
of the Indian economy and society. The
partnership aims to offer a detailed set
of solutions comprising connectivity,
computing, storage solutions and other
technology services and applications
essential for Indian businesses.
MEDIA AND ENTERTAINMENT
Network18 improved its financial
performance even amidst substantial
weakness in the advertising environment,
as business mix pivoted towards
subscription and syndication. Broad-based
cost controls across verticals further helped
improve the business profitability, amidst
an uncertain macro-environment. During
FY 2019-20, Network18 reported revenues
of ` 5,357 crore (growth of 4.7% y-o-y) and
EBITDA of ` 617 crore.
On February 17, 2020, the Boards of
Network18, subsidiary TV18, and cable
companies Hathway and Den Networks
approved a Scheme of Arrangement for
consolidation into Network18. This merger
is subject to all necessary approvals and
the Appointed Date for the merger shall
be February 1, 2020. Aggregation of a
content powerhouse across news and
entertainment (both linear and digital) and
the country’s largest cable distribution
network under the same umbrella shall
boost efficiency and exploit synergies,
creating value for all stakeholders. The
merged Network18 will be net-debt free
and enjoy a ~50% share of subscription in
revenue mix; making it much more resilient.
REFINING & MARKETING BUSINESS
The Company continued to outperform
Singapore complex margins with a
premium of US$ 5.7/bbl, significantly
above its 5-year average. It reflects the
robust operational performance, superior
configuration and consistent high utilisation
of refineries at Jamnagar.
Refining EBITDA for the year was down 6%
y-o-y at ` 24,461 crore led by lower Gross
Refining Margin (GRM) of US$8.9/bbl. The
segment performance was impacted by
volatile crude prices and multi-year low light
distillate product cracks. Petrochemicals
integration has been further enhanced
with successful commissioning of High
Purity Iso-Butylene/ Isobutylene Isoprene
Rubber (HPIB / IIR) complex. Petcoke
Gasification complex operation has
been stabilised successfully and is being
ramped-up, paving the way for significant
reduction in supplemental energy cost.
Petcoke gasification project, is transforming
Jamnagar refinery into a unique ‘Residue
free refinery’ by converting coke into
valuable syngas. The Company expanded
its domestic fuel retailing footprint to 1,398
outlets and maintained industry leading
throughput per outlet.
PETROCHEMICALS BUSINESS
The petrochemicals industry witnessed
an uncertain and volatile environment.
Towards the end of the year, Company
leveraged its global reach and deep
customer connect to quickly shift to an
export mode, inverting its business model
from 20%-80% (exports / domestic) to
80%-20% through agile multi-modal logistic
solutions, while still fully catering to the
essential domestic sectors first.
The revenue for FY 2019-20 from the
Petrochemicals segment decreased by
15.6% to ` 1,45,264 crore (US$ 19.2 billion).
Petrochemicals segment EBITDA was at
` 30,933 crore (US$ 4.1 billion), down 18.3%
as compared to previous year due to lower
margins in key products.
The Company also launched new
value-added products like RELInforce and
ReRoute to strengthen its consumer facing
segment and derive more value from waste.
OIL AND GAS (EXPLORATION &
PRODUCTION) BUSINESS
The revenue for FY 2019-20 for the Oil
and Gas segment decreased by 35.8%
y-o-y to ` 3,211 crore. Volumes from
domestic upstream fields and US shale
were lower because of natural decline
and slowdown in development activity.
Segment EBITDA was at ` 353 crore as
against ` 1,642 crore in the previous year.
The domestic production (RIL share) was
at 38.8 BCFe, down 34.1% y-o-y and in US
Shale (RIL share), business was 80.4 BCFe,
down 14.9% y-o-y basis.
CREDIT RATING
The Company’s financial discipline and
prudence is reflected in the strong credit
ratings ascribed by rating agencies.
The details of credit ratings are disclosed
in the Management Discussion and
Analysis Report, which forms part of the
Annual Report.
CONSOLIDATED FINANCIAL
STATEMENT
In accordance with the provisions of
the Act and Listing Regulations read
with Ind AS-110-Consolidated Financial
Statement, Ind AS-28-Investments in
Associates and Joint Ventures and Ind
AS-31-Interests in Joint Ventures, the
consolidated audited financial statement
forms part of 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 the
Company’s subsidiaries, joint ventures or
associate companies.
A statement providing details of
performance and salient features of
the financial statements 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 https://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 https://www.ril.com/
InvestorRelations/Downloads.aspx
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
During the year under review:
a)
b)
Reliance Jio Infocomm Limited,
Reliance Retail Limited and Reliance
Industrial Investments and Holdings
Limited (RIIHL) were material
subsidiaries of the Company, as per
Listing Regulations. Post closure of the
financial year, Jio Platforms Limited
and Reliance Global Energy Services
(Singapore) Pte. Limited have become
material subsidiaries and RIIHL has
ceased to be a material subsidiary of
the Company; and
The Company acquired 37.7% of the
equity share capital of Alok Industries
Limited and has also invested
` 250 crore in Optionally Convertible
Preference Shares, in accordance
with the approved Resolution Plan.
The Company along with JM Financial
Asset Reconstruction Company Limited
acting in its capacity as a Trustee
of ‘JMFARC March 2018–Trust’, will
acquire joint control of Alok Industries
Limited upon implementation of the
approved Resolution Plan.
SECRETARIAL STANDARDS
The Company has followed applicable
Secretarial Standards, i.e. SS-1 and
SS-2, relating to ‘Meetings of the
Board of Directors’ and ‘General
Meetings’ respectively.
215
Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Board’s Report (contd)
DIRECTORS’ RESPONSIBILITY
STATEMENT
Your Directors state that:
a)
b)
c)
d)
e)
f)
in the preparation of the annual
accounts for the year ended March
31, 2020, 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, 2020 and of
the profit of the Company for the year
ended on that date;
the Directors have taken proper and
sufficient care for the maintenance
of adequate accounting records in
accordance with the provisions of the
Act for safeguarding the assets of
the Company and for preventing and
detecting fraud and other irregularities;
the Directors have prepared the annual
accounts on a going concern basis;
the Directors have laid down internal
financial controls to be followed by
the Company and that such internal
financial controls are adequate and are
operating effectively; and
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 adheres 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.
216
of, Rural Transformation; Health; Education;
Sports for Development; Disaster
Response; Arts, Culture, Heritage and
Urban Renewal.
The Company supported major national
campaigns like Swachhata hi Seva and Jal
Shakti Abhiyan. It responded fast to national
emergencies and disasters including
floods and more recently, COVID-19
pandemic which has earned accolades
from one and all.
CSR initiatives of the Company have
won several awards including Mahatma
Award 2019 for Excellence in Corporate
Social Responsibility. The Company was
conferred with the Golden Peacock Award
2019–for the fourth consecutive year.
CSR initiatives of the Company under the
leadership of Smt. Nita M. Ambani, Founder
and Chairperson, Reliance Foundation,
have touched the lives of around 3.6 crore
people across India covering more
than 37,000 villages and several urban
locations across India.
The CSR policy, formulated by the
Corporate Social Responsibility and
Governance (“CSR&G”) Committee
and approved by the Board, continues
unchanged. The policy can be accessed
at https://www.ril.com/DownloadFiles/
IRStatutory/CSR-Policy.pdf
The three core commitments of Scale,
Impact and Sustainability form the bed-
rock of the Company’s philosophy on
CSR initiatives.
As per the CSR policy of the Company,
Rural Transformation, Health, Education,
Environment, Arts, Heritage & Culture and
Disaster Response, are the focus areas for
CSR engagement.
During the year, the Company spent ` 909
crore (around 2.08% 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.
BUSINESS RESPONSIBILITY
REPORT
As stipulated under the Listing Regulations,
the Business Responsibility Report
(BRR) describing the initiatives taken by
the Company from an environmental,
social and governance perspective is
put up on the Company’s website and
can be accessed at https://www.ril.com/
DownloadFiles/BRR201920.pdf
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 or which is required to
be reported in Form No. AOC-2 in terms
of Section 134(3)(h) read with Section 188
of the Act and Rule 8(2) of the Companies
(Accounts) Rules, 2014.
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 https://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 32 to the
Standalone Financial Statement which
sets out related party disclosures
pursuant to Ind AS.
CORPORATE SOCIAL
RESPONSIBILITY (CSR)
Over the past decade, the Company
has focused on several corporate social
responsibility programmes and has
touched the lives of millions of Indians.
The Company continued its endeavour to
improve the lives of people and provide
opportunities for their holistic development
through its different initiatives in the areas
RISK MANAGEMENT
The Company has a structured Group
Risk Management Framework, designed
to identify, assess and mitigate risks
appropriately. The Risk Management
Committee has been entrusted with the
responsibility to assist the Board in:
a)
b)
overseeing and approving the
Company’s enterprise wide risk
management framework; and
ensuring that all material Strategic and
Commercial, Safety and Operations,
Cybersecurity, Compliance and
Control and Financial risks have
been identified, assessed and that
adequate risk mitigations are in place,
to address these risks.
Further details on the Risk Management
activities including the implemented
risk management policies, key risks
identified and their mitigations are
covered in Management’s Discussion
and Analysis section, which forms part of
the Annual Report.
INTERNAL FINANCIAL
CONTROLS
Internal Financial Controls are an integral
part of the Group Risk Management
framework and processes that address
financial and financial reporting risks.
The key internal financial controls have
been documented, automated wherever
possible and embedded in the respective
business processes.
Assurance to the Board on the
effectiveness of internal financial
controls is obtained through 3 Lines of
Defence which include:
a)
b)
c)
Management reviews and control
self-assessment;
Continuous controls monitoring by
functional experts as well as; and
Independent design and operational
testing by the Group Internal Audit
function and the Statutory Auditor
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.
b)
they have registered their names in the
Independent Directors’ Databank.
The Company has devised, inter alia, the
following policies viz.:
a)
b)
Policy for selection of Directors
and determining Directors’
independence; and
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 https://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
change in the policy during the current year.
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.
DIRECTORS AND KEY
MANAGERIAL PERSONNEL
In accordance with the provisions of
the Act and the Articles of Association
of the Company, Shri Hital R. Meswani
and Shri P.M.S. Prasad, Directors of the
Company, retire by rotation at the ensuing
AGM. The Board of Directors on the
recommendation of the Human Resources,
Nomination and Remuneration (“HRNR”)
Committee has recommended their
re-appointment.
Shri Mansingh L. Bhakta was on the Board
of the Company since September 27, 1977,
i.e. even before initial public offering of
the Company and has rendered immense
service to the Company. He demitted office
as an Independent Director w.e.f.
August 12, 2019 on account of his advanced
age. The Board places on record its
deepest gratitude and appreciation
towards valuable contribution made by
Shri Mansingh L. Bhakta to the growth and
governance of the Company during his
tenure as a Director of the Company.
The Board of Directors has:
a)
b)
Appointed Shri K. V. Chowdary as an
Additional Director who holds office up
to the ensuing AGM; and
Re-appointed Shri Hital R. Meswani as
Executive Director for a further period
of five years effective August 4, 2020.
The Board of Directors on the
recommendation of the HRNR Committee
commends their appointment /
re-appointment at the ensuing AGM.
The Company has received declarations
from all the Independent Directors of the
Company confirming that:
a)
they meet the criteria of independence
prescribed under the Act and the
Listing Regulations and
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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
Directors. The Independent Directors
carried out annual performance evaluation
of the Chairperson, the non-independent
directors and the Board as a whole. 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”) was
withdrawn during FY 2017-18. However,
options granted under ESOS–2006
continue to be governed by ESOS–2006.
The Schemes are in line with the Securities
Exchange Board of India (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
is available for inspection by members in
electronic mode. The details as required to
be disclosed under the SBEB Regulations
are put up on the Company’s website and
can be accessed at https://www.ril.com/
DownloadFiles/IRStatutory/ESOS-2006-
Disclosure-2019-20.pdf and https://www.
ril.com/DownloadFiles/IRStatutory/ESOS-
2017-Disclosure-2019-20.pdf
218
Shome & Banerjee, Cost Accountants,
were nominated as the Company’s Lead
Cost Auditors.
In accordance with the provisions of
Section 148(1) of the Act, read with the
Companies (Cost Records and Audit) Rules,
2014, the Company has maintained cost
accounts and records.
SECRETARIAL AUDITOR
The Board had appointed Dr. K.R.
Chandratre, Practising Company Secretary,
to conduct Secretarial Audit for the financial
year 2019-20. The Secretarial Audit Report
for the financial year ended March 31,
2020 is annexed herewith and marked as
Annexure IV to this Report. The Secretarial
Audit Report does not contain any
qualification, reservation or adverse remark.
DISCLOSURES
MEETINGS OF THE BOARD
Seven Meetings of the Board of Directors
were held during the year. The particulars
of the meetings held and attended by
each Director are detailed in the Corporate
Governance Report.
AUDIT COMMITTEE
The Audit Committee comprises
Shri Yogendra P. Trivedi (Chairman),
Dr. Raghunath A. Mashelkar, Shri Adil
Zainulbhai, Shri Raminder Singh Gujral and
Shri K. V. Chowdary. During the year, all
the recommendations made by the Audit
Committee were accepted by the Board.
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.
AUDITORS AND AUDITORS’
REPORT
STATUTORY AUDITORS
S R B C & CO LLP, Chartered Accountants
and D T S & Associates LLP (formerly
known as D T S & Associates), Chartered
Accountants were appointed as Auditors
of the Company for a term of 5 (five)
consecutive years, at the AGM held on
July 21, 2017. The Auditors have confirmed
that they are not disqualified from
continuing as Auditors of the Company.
The Notes on financial statement referred to
in the Auditors’ Report are self-explanatory
and do not call for any further comments.
The Auditors’ Report does not contain any
qualification, reservation, adverse remark
or disclaimer.
COST AUDITORS
The Board has appointed following
Cost 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
2020-21 under Section 148 of the Act read
with the Companies (Cost Records and
Audit) Rules, 2014:
i.
ii.
iii.
iv.
v.
vi.
Textiles Business –
Kiran J. Mehta & Co;
Chemicals Business – Diwanji & Co.,
K.G. Goyal & Associates, V.J. Talati
& Co., Suresh D. Shenoy, Shome &
Banerjee and Dilip M. Malkar & Co.;
Polyester Business – V.J. Talati
& Co., Suresh D. Shenoy, V.
Kumar & Associates and K.G.
Goyal & Associates;
Electricity Generation – Diwanji & Co.
and Kiran J. Mehta & Co.;
Petroleum Business –
Suresh D. Shenoy;
Oil & Gas Business – V.J. Talati & Co.
and Shome & Banerjee;
vii.
Gasification – Suresh D. Shenoy; and
viii. Composite Solution –
Kiran J. Mehta & Co.
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 Gujral, Dr. Shumeet Banerji
and Shri K. V. Chowdary.
STAKEHOLDERS RELATIONSHIP
COMMITTEE
The Committee comprises Shri
Yogendra P. Trivedi (Chairman), Smt
Arundhati Bhattacharya, Shri K. V.
Chowdary, Shri Nikhil R. Meswani and
Shri Hital R. Meswani.
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. An Ethics and
Compliance Task Force (ECTF) comprising
an Executive Director, General Counsel,
Group Controller and Group Company
Secretary has been established which
oversees and monitors implementation of
ethical business practices in the Company.
The task force meets periodically to review
the complaints and incidents and reports
them to the Audit Committee.
Protected disclosures can be made by
a Whistle-blower through an e-mail or
dedicated telephone line or a letter to
the ECTF 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 https://www.ril.com/DownloadFiles/
IRStatutory/Vigil-Mechanism-and-Whistle-
Blower-Policy.pdf
PREVENTION OF SEXUAL
HARASSMENT AT WORKPLACE
As per the requirements of the Sexual
Harassment of Women at Workplace
(Prevention, Prohibition & Redressal)
Act, 2013 (“POSH Act”) and Rules made
thereunder, the Company has formed an
Internal Committee to address complaints
pertaining to sexual harassment in the
workplace. The Company policy mandates
prevention of sexual harassment and to
ensure a free and fair enquiry process
with clear timelines for resolution. To
build awareness, the Company has been
conducting online training programmes on
a periodic basis.
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, 32 and 38 to the Standalone
Financial Statement).
CONSERVATION OF ENERGY,
TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS
AND OUTGO
The particulars relating to conservation
of energy, technology absorption, foreign
exchange earnings and outgo, as required
to be disclosed under the Act, are provided
in Annexure V to this Report.
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
Extracts of the Annual return in form MGT
9 for the FY 2019-20 can be accessed
at http://www.ril.com/DownloadFiles/
IRStatutory/Extract-of-Annual-
Return-2019-20.pdf
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 the 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.
Any member interested in obtaining such
information may write to the Company to
email id - rilagm@ril.com
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview 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 and regulatory authorities,
stock exchanges, customers, vendors,
members and debenture holders during the
year under review.
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 30, 2020
Board’s Report (contd)
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 has been no change in the nature
of business 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 30, 2020
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”).
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
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.
three to five years
• Expected future capital /
liquidity requirements
• Any other relevant factors and
material events.
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.
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 endeavour 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.
220
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Board’s Report (contd)
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:
3.
Companies / Bodies Corporate
which have become Joint
Ventures or Associates during the
financial year 2019-20:
Sr.
No.
1.
2.
3.
4.
5.
6.
4.
Name of the Company
Vadodara Enviro Channel Limited
Reliance Jio Infratel Private Limited
India Gas Solutions Private Limited
Football Sports Development Limited
IMG Reliance Limited
Alok Industries Limited
There are no Companies / Bodies
Corporate which have ceased to be
Joint Venture or Associate during the
financial year 2019-20.
For and on behalf of the Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
Mumbai, April 30, 2020
1.
Companies / Bodies Corporate which
became Subsidiaries during the
financial year 2019-20:
2.
Companies / Bodies Corporate which
ceased to be Subsidiaries during the
financial year 2019-20:
Name of the Company
Ethane Crystal LLC
Sr.
No.
1.
2. Ethane Emerald LLC
3. Ethane Opal LLC
4. Ethane Sapphire LLC
5. Ethane Topaz LLC
6. Ethane Pearl LLC
7.
Reliance Services and Holdings Limited
(formerly Known as Naroda Power
Limited)
8. Reliance World Trade Private Limited
9. Reliance Polyolefins Limited
10. Reliance Energy and Project
Development Limited
Reliance Aromatics and Petrochemicals
Limited
11.
12. Reliance Chemicals Limited
13. Reliance Universal Enterprises Limited
14. Rhea Retail Private Limited
15. Reliance Lifestyle Holdings Limited
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Name of the Company
Reliance 4IR Realty Development Limited
(formerly known as Dhraviance Realty
Limited)
Tesseract Imaging Private Limited
Surajya Services Private Limited
Reliance Ethane Pipeline Limited
Reliance Projects & Property
Management Services Limited (formerly
known as Reliance Digital Platform &
Project Services Limited)
Reliance Strategic Business Ventures
Limited
Reliance Petroleum Retail Limited
Reliance Brands Holding UK Limited
Shopsense Retail Technologies Private
Limited
10. Affinity USA Inc.
Jio Limited
11.
12.
Jio Platforms Limited
13. eDreams Edusoft Private Limited
14. NowFloats Technologies Private Limited
15. Asteria Aerospace Private Limited
16. Shri Kannan Departmental Store Private
Limited
The Hamleys Group Limited
17.
18. Hamleys of London Limited
19. Hamleys (Franchising) Limited
20. Hamleys Asia Limited
21. Hamleys Toys (Ireland) Limited
22. Luvley Limited
23. Scrumpalicious Limited
24. Hamleys Global Holdings Limited
ANNEXURE III
Annual Report on Corporate Social Responsibility (CSR) activities for the financial year 2019-20
1.
2.
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)
3.
4.
5. 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
Details of amount spent on CSR activities during the financial year 2019-20
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
` 43,747.43 crore
` 874.95 crore
` 874.95 crore
` 908.71 crore
Not applicable
Details given below
CSR project or Activity Identified
Sr.
No.
Sector in which the project
is covered (Clause number
of Schedule VII to the
Companies Act, 2013,
as amended)
RURAL TRANSFORMATION
RF Bharat India Jodo
1
2
RF Information Services
3
4
5
Community Development
Partnership with Non-
Government Organisations
CSR Initiatives – at
manufacturing locations
Cl (i) Eradicating hunger,
poverty and malnutrition;
Cl (iv) Ensuring
environmental
sustainability;
Cl (x) Rural Development
Projects
Cl (i) Eradicating hunger,
poverty and malnutrition;
Cl (iv) Ensuring
environmental
sustainability;
Cl (x) Rural Development
Projects
Cl (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
Projects or
Programmes:
1) Local Area or Other
2) Specify the State
and district
where projects or
programmes were
undertaken
Amount Outlay
(Budget)
Project or
Programme-
wise
(` in crore)
Amount spent on
the Projects or
Programmes:
Sub Heads
Direct
1)
Expenditure
on Projects or
Programmes
Overheads
(` in crore)
2)
Cumulative
Expenditure
upto the
reporting
period
(` in crore)
Amount
Spent Direct
or through
Implementing
Agency (IA)
PAN INDIA
12.00
10.20
297.91
IA (1)
PAN INDIA
10.00
6.17
85.86
IA (1)
As per Note 1
25.00
22.28
58.29
PAN INDIA
As per Note 2
17.00
4.00
16.42
111.00
3.47
177.38
Direct
IA (1)
IA (1)
222
223
Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Board’s Report (contd)
CSR project or Activity Identified
Sr.
No.
HEALTH
6
Drishti Corneal transplant and
other initiatives for visually
impaired
Sir HN Reliance Foundation
Hospital and Research Centre
7
8
Lodhivali Hospital - ART Clinic
9
Partnership with Non-
Government Organisations
10 Mother & Child Health
programme & Other Community
Development Initiatives
11
CSR Initiatives at manufacturing
locations
12 Community Development -
Health Initiatives
13 Completed Projects of Earlier
Years
Sector in which the project
is covered (Clause number
of Schedule VII to the
Companies Act, 2013,
as amended)
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
Projects or
Programmes:
1) Local Area or Other
2) Specify the State
and district
where projects or
programmes were
undertaken
Amount Outlay
(Budget)
Project or
Programme-
wise
(` in crore)
Amount spent on
the Projects or
Programmes:
Sub Heads
Direct
1)
Expenditure
on Projects or
Programmes
Overheads
(` in crore)
2)
Cumulative
Expenditure
upto the
reporting
period
(` in crore)
Amount
Spent Direct
or through
Implementing
Agency (IA)
PAN INDIA
4.00
2.24
11.76
IA (1)
Maharashtra
– Mumbai
Maharashtra
– Raigad
42.00
19.38
1237.10
IA (1)
1.75
1.32
14.06
IA (1)
As per Note 3
2.25
2.04
29.75
IA (1)
CSR project or Activity Identified
Sr.
No.
Sector in which the project
is covered (Clause number
of Schedule VII to the
Companies Act, 2013,
as amended)
Projects or
Programmes:
1) Local Area or Other
2) Specify the State
and district
where projects or
programmes were
undertaken
Amount Outlay
(Budget)
Project or
Programme-
wise
(` in crore)
Amount spent on
the Projects or
Programmes:
Sub Heads
Direct
1)
Expenditure
on Projects or
Programmes
Overheads
(` in crore)
2)
Cumulative
Expenditure
upto the
reporting
period
(` in crore)
Amount
Spent Direct
or through
Implementing
Agency (IA)
EDUCATION
14 Vocational Skilling Initiative
15 Dhirubhai Ambani Scholarship
Cl (ii) Promoting Education As per Note 4
Cl (ii) Promoting Education As per Note 5
2.00
4.00
0.97
3.62
10.68
20.48
IA (1)
IA (1)
16
Programme
Jio Institute – Institution of
Eminence*
Partnership with Non-
Government Organisations
18 Other CSR Initiatives – RF
17
Schools and at manufacturing
locations
Cl (ii) Promoting Education Maharashtra –
Mumbai, Raigad
Cl (ii) Promoting Education As per Note 6
Cl (ii) Promoting Education Daman & Diu –
Silvassa; Gujarat
– Surat, Jamnagar;
Maharashtra –
Mumbai, Raigad
231.00
228.96 1,295.55 IA (1) / IA (2)
13.00
4.00
11.72
149.82
2.62
2.62
IA (1)
IA (1)
Madhya Pradesh
– Shahdol; West
Bengal – East
Medinipur
As per Note 2
Gujarat – Surat;
Maharashtra –
Raigad; Punjab
– Hoshiarpur
Maharashtra –
Mumbai, Thane
1.00
0.87
6.81
IA (1)
19 CSR Initiatives at manufacturing
Cl (ii) Promoting Education As per Note 2
6.00
5.93
122.50
Direct
locations
20 Completed Projects of Earlier
Cl (ii) Promoting Education PAN INDIA
-
-
17.30
Direct
7.50
7.46
83.84
Direct
1.50
1.39
1.39
IA (1)
Years
SPORTS FOR DEVELOPMENT
Promoting Grassroot Sports
21
-
-
83.16
IA (1)
22 Reliance Foundation Jr. NBA
Programme
23 Reliance Foundation Young
Champs
24 Partnership with Non-
Government Organisations
25 CSR Initiatives at manufacturing
locations
PAN INDIA
40.00
36.83
137.22
IA (3)
PAN INDIA
4.80
2.51
18.51
IA (1)
Maharashtra
– Thane
Maharashtra
– Raigad
5.00
2.26
13.27
IA (1)
0.15
0.01
3.86
IA (1)
As per Note 2
0.05
0.04
0.06
Direct
Cl (vii ) Promoting
rural sports, Nationally
recognised sports,
Paralympic sports and
Olympic sports
Cl (vii) Promoting rural
sports, Nationally
recognised sports,
Paralympic sports and
Olympic sports
Cl (vii) Promoting rural
sports, Nationally
recognised sports,
Paralympic sports and
Olympic sports
Cl (vii) Promoting rural
sports, Nationally
recognised sports,
Paralympic sports and
Olympic sports
Cl (vii) Promoting rural
sports, Nationally
recognised sports,
Paralympic sports and
Olympic sports
224
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Board’s Report (contd)
CSR project or Activity Identified
Sr.
No.
DISASTER RESPONSE
26 Disaster Relief #
URBAN RENEWAL
27 Environment – RF – Urban
Renewal Initiatives
ARTS, CULTURE AND HERITAGE
28 Promoting Traditional Arts and
Culture
29 CSR Initiatives at manufacturing
locations
Sector in which the project
is covered (Clause number
of Schedule VII to the
Companies Act, 2013,
as amended)
Cl (viii) Contribution to
the prime minister’s
national relief fund or
Prime Minister’s Citizen
Assistance and Relief in
Emergency Situations
Fund (PM CARES Fund)
Cl (xii) Disaster
management, including
relief, rehabilitation and
reconstruction activities
Cl (iv) Ensuring
environmental
sustainability, ecological
balance
Cl (v) Protection of
national heritage, art and
culture
Cl (v) Protection of
national heritage, art and
culture
Projects or
Programmes:
1) Local Area or Other
2) Specify the State
and district
where projects or
programmes were
undertaken
Amount Outlay
(Budget)
Project or
Programme-
wise
(` in crore)
Amount spent on
the Projects or
Programmes:
Sub Heads
Direct
1)
Expenditure
on Projects or
Programmes
Overheads
(` in crore)
2)
Cumulative
Expenditure
upto the
reporting
period
(` in crore)
Amount
Spent Direct
or through
Implementing
Agency (IA)
PAN INDIA
519.00
518.83
562.63
Direct /
IA (1)
Maharashtra
– Mumbai
1.50
0.37
4.94
IA (1)
As per Note 7
1.25
0.69
3.57
IA (1)
As per Note 2
0.25
0.11
13.07
Direct
Grand Total
960.00
908.71
4574.39
Some of CSR activities have been carried in partnership with other Non-Government Organisations.
Previous years figures have been regrouped and restated for better presentation.
Note 1: Andhra Pradesh – East
Godavari; Gujarat – Bharuch, Dahej,
Surat, Jamnagar, Navsari, Surat, Valsad;
Haryana – Jhajjar, Rewari;
Madhya Pradesh – Anuppur, Shahdol,
Ujjain; Maharashtra – Mumbai, Palghar,
Thane, Raigad; Tamilnadu – Tiruvallur;
Uttar Pradesh – Barabanki, Ghazipur.
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, Parbhani,
Yavatmal; Gujarat – Rajkot, Bharuch;
Telangana – Warangal;
Uttarakhand – Dehradun;
Madhya Pradesh – Chhindwara, Seoni;
Rajasthan – Banswara, Sawai Madhopur;
Union Territory – Delhi.
Note 4: Andhra Pradesh – Anantapur,
Kurnool, Vishakhapatnam; Bihar – Patna;
Gujarat – Ahmedabad, Jamnagar;
Jharkhand – Ranchi;
Madhya Pradesh – Bhopal;
Maharashtra – Mumbai, Nagpur, Pune,
Thane, Nashik; Odisha – Bhubaneswar;
Rajasthan – Bhilwara, Jaipur;
Tamil Nadu – Chennai;
Telangana – Karimnagar, 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; Kerala – Kollam;
Maharashtra – Mumbai, Thane, Pune,
Raigad; Punjab – Amritsar;
Rajasthan – Jaipur; Tamilnadu – Chennai;
Union Territory – Delhi, Dadra and Nagar
Haveli, Daman and Diu.
Note 6: Gujarat – Gandhinagar;
Maharashtra – Mumbai, Nagpur;
Uttarakhand – Chamoli;
Union Territory – Delhi.
Note 7: Maharashtra – Mumbai;
Union Territory – Delhi.
IA (1) – Reliance Foundation (RF), is a
company within the meaning of
Section 8 of the Companies Act,
2013 and has a comprehensive
approach towards development with
an overall aim to create and support
meaningful and innovative activities
that address some of India’s most
pressing developmental challenges,
with the aim of enabling lives, living
and livelihood for a stronger and
inclusive India.
IA (2) – Reliance Foundation Institution
of Education and Research
(RFIER) is a company within the
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
the meaning of Section 8 of
the Companies Act, 2013 has a
comprehensive approach towards
development of grassroot sports.
* Includes ` 228.80 crore towards
contribution to RFIER as Corpus for the
proposed University project.
# Expenditure on Disaster Relief includes
contribution to PM CARES Fund.
The implementation and monitoring of
Corporate Social Responsibility (CSR)
Policy, is in compliance with CSR objectives
and policy of the Company.
Yogendra P. Trivedi
Chairman,
CSR&G Committee
Nikhil R. Meswani
Executive Director
Mumbai, April 30, 2020
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ANNEXURE IV
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR
ENDED 31 MARCH, 2020
[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 authorized representatives
during the conduct of Secretarial Audit,
I hereby report that in my opinion, the
Company has, during the audit period
covering the financial year ended on
31 March, 2020 (‘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, 2020
according to the provisions of:
(i)
(ii)
(iii)
(iv)
The Companies Act, 2013 (the Act) and
the rules made thereunder;
The Securities Contracts (Regulation)
Act, 1956 (‘SCRA’) and the rules
made thereunder;
The Depositories Act, 1996 and
the Regulations and Bye-laws
framed thereunder;
The 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 prescribed
under the Securities and Exchange
Board of India Act, 1992 (‘SEBI Act’): —
(a)
(b)
(c)
(d)
(e)
The Securities and Exchange
Board of India (Substantial
Acquisition of Shares and
Takeovers) Regulations, 2011;
The Securities and Exchange
Board of India (Prohibition of
Insider Trading) Regulations, 2015;
The Securities and Exchange
Board of India (Issue of Capital
and Disclosure Requirements)
Regulations, 2018;
The Securities and Exchange
Board of India (Share
Based Employee Benefits)
Regulations, 2014;
The Securities and Exchange
Board of India (Issue and
Listing of Debt Securities)
Regulations, 2008;
(f)
(g)
(h)
(i)
The Securities and Exchange
Board of India (Registrars to an
Issue and Share Transfer Agents)
Regulations, 1993 regarding the
Act and dealing with client;
The Securities and Exchange
Board of India (Delisting of Equity
Shares) Regulations, 2009 (Not
applicable to the Company during
the Audit Period); and
The Securities and Exchange
Board of India (Buyback of
Securities) Regulations, 2018 (Not
applicable to the Company during
the Audit Period).
The Securities and Exchange
Board of India (Listing Obligations
and Disclosure Requirements)
Regulations, 2015
I have also examined compliance with the
applicable clauses of the following:
(i)
(ii)
Secretarial Standards (SS-1 and SS-2)
issued by The Institute of Company
Secretaries of India; and
Listing Agreements entered into
by the Company with BSE Limited
and the National Stock Exchange
of India Limited.
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)
(b)
(c)
(d)
(e)
Merchant Shipping Act, 1958 and Rules
made thereunder;
Petroleum Act, 1934 and Rules
made thereunder;
Oil Field (Regulation and Development)
Act, 1948 and Rules made thereunder;
The Mines Act, 1952 and Rules made
thereunder; and
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, and
a system exists for seeking and obtaining
further information and clarifications on the
agenda items before the meeting and for
meaningful participation at the meeting.
All decisions at Board Meetings and
Committee Meetings were 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:
1.
Pursuant to the Scheme of
Arrangement amongst Reliance
Jio Infocomm Limited and certain
class of its creditors approved by
the Hon’ble National Company Law
Tribunal, Ahmedabad bench vide
order dated 13 March, 2020, the
Company has assumed identified
liabilities (as defined in the Scheme)
with effect from the appointed date
i.e. December 16, 2019. Out of total
identified liabilities of ` 104,365
crore transferred to the Company,
borrowings comprise ` 66,987 crore.
The ISINs relating to debentures
assumed by the Company stood
transferred in its name with effect from
30 March, 2020.
2.
The Company has cancelled certain
non-convertible debentures [PPD
Series G – 3570, H – 3450, IB – 5850],
in accordance with the terms of issue of
these Debentures, which were bought
by the Company from the open market
during the financial year 2019-20.
Dr. K. R. Chandratre
FCS No.: 1370, CP No.: 5144
UDIN: F001370B000192253
Place: Pune
Date: April 30, 2020
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Board’s Report (contd)
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
The Company continues to meet the
growing energy demand, while working
towards minimising the environmental
footprint of its ongoing operations, as
well as future projects. The Company is
continually exploring new ways to make
its 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 2019-20
Refining and Marketing
Jamnagar manufacturing division (DTA)
•
Installation of hot separator in
Continuous Catalytic Reformer (CCR)
Platformer and Medium Pressure (MP)
steam generation from convection
section of platformer heater
Installation of Hot Separator to
generate MP steam (utilisation of
stripper bottom heat)
•
• Upgradation of 25 Tonnes per Hour
(TPH) by-product wet steam by
installation of superheater for export
to Outside Battery Limit (OSBL) LP
steam header from Low Density Poly
Ethylene (LDPE) plant
• Trim modification of Boiler Feed
Water (BFW) control valve installed
on Steam Turbo Generator (STG) very
High Pressure to Medium Pressure
(HHP-MP) Pressure Reducing De
Superheating (PRDS) station
• Reduction of the minimum
PRDS opening by 2-2.5% in
captive power plant
• HP cooling water stopped in Mono
Ethylene Glycol (MEG) cooling tower
• Diversion of refining column
overhead stream to MEG day tank
bypassing MEG column
Petrochemicals
Hazira manufacturing division
• Water washing of convection coils of
two recycle furnaces and one main
furnace resulting in reduction of fuel
gas consumption
• Para Di Ethyl Benzene (PDEB) –
Reduction of reflux flow rate of C-201
tower from 15 TPH to 12 TPH resulted
saving in HP steam consumption
• LP Steam saving due to stoppage
of BD preheater
• Replacement of High Pressure
• Power saving in BD compressor by
process improvements
•
• Reduction in fuel gas consumption
by optimising the warm-up ‘Heat
Transfer Fluid’ flow to Low Boil’s
Column (LB) reboiler
Increasing in efficiency of Cooling
Tower-1 (CT) pump by refurbishment
• Stoppage of 1 Boiler Feed Water (BFW)
pump (out of 7 running pump) at Coal
based Captive Power Plant (CCPP)
resulted in power saving
• Sonic horn installation in boiler 1 & boiler
5 resulted in coal saving
• Fly ash recirculation in Boiler-1 resulting
in coal, bed material and power saving
(HP) steam with MP Steam in Clay
treater Feed heater in Extractive
Distillation (ED) Unit
Implementation of “Duel feed scheme”
in existing toluene column
Isomer Benzene Column (IBC) feed
preheating by lean solvent (Phase-2)
•
•
• Modification of crude preheat
exchangers from 2 pass to 4 pass for
better heat recovery and to reduce fuel
consumption in crude heater
Jamnagar manufacturing division (SEZ)
• Preheating of Vacuum Gas Oil (VGO)
cold feed with fractionator bottom
Jamnagar manufacturing division
(C2 Complex)
• Optimisation of Cracked Gas
Compressor / Unsaturated Gas /
Saturated Gas (CGC / USG / SG) dryers
regeneration time in ROGC (Refinery
Off-Gas Cracker) plant
230
Vadodara manufacturing division
• Naphtha furnace offline chemical
cleaning of convection section
• Carbon dioxide Recovery Unit (CRU)
performance improvement
• Usage of Finishing water instead
De-mineralised (DM) water as a recycle
water (heat recovery)
• Reflux reduction in T-410 Tower Expected
steam reduction and load shifting
Dahej manufacturing division
• Remembraning of 12 electrolysers in
Chlor Alkali plant
• Reduction of steam consumption in
Purified Teraphthalic Acid (PTA) plant
by closure of Very High Pressure to
Low Pressure, Very High Pressure to
Intermediate Pressure and High Pressure
to Medium Pressure blow down valves
• Stoppage of one pump in Cooling Tower-
01 after refurbishing of all pumps
Nagothane manufacturing division
• Cracker furnace H-13 insulation
was revamped to minimise
surface heat losses
• Sustained trap management system to
minimise steam losses
• Modification of Gas turbine inlet air filter
•
for performance enhancement
Insulation revamp of Heat Recovery
Steam Generator (HRSGs) in Captive
Power Plant (CPP)
• Rectification of Gas Cracker (GC) cold
line insulation for loss minimisation
• Replacement of motor drive with
steam turbine for one quench water
pump in GC plant
Naroda manufacturing division
• Power saving by replacement of supply
air ducts in worsted spinning
• Power saving by manually optimising
humidification plants in weaving and
worsted spinning
• Power saving by stopping one
operational line in Effluent
Treatment Plant (ETP)
Silvassa manufacturing division
• Savings on Light Emitting Diodes
(LED) lighting conversion upon
conventional lighting
Incentive for saving energy in electrical
power distribution on account of
maintaining high-Power Factor
•
Patalganga manufacturing division
• LP steam to Polyester line-up
through PTA header
• Optimisation of steam
consumption in deaerator
Other initiatives taken at various
manufacturing divisions
• Ordinary lights replaced with LED lights
at Barabanki Manufacturing Division
(ii) Steps taken to utilise alternate
sources of energy
•
Increasing Utilisation of Biogas at
Polyethylene Terephthalate Plant
causing decreased consumption of
Liquid Petroleum Gas fuel at Dahej
Manufacturing Division
• Production and use of Biogas from
•
canteen waste at industrial canteen at
Dahej Manufacturing Division
Installation of solar traffic blinkers and
lights at Silvassa Manufacturing Division
• Gas generated in PTA Upflow Anerobic
Sludge Blended (UASB) reactor is
used in process heaters at Hazira
Manufacturing Division
• Power generated from windfarm is
credited for import from the grid at
Vadodara Manufacturing Division
Installation of Solar heater on
Administration Building roof at
Patalganga Manufacturing Division
•
(iii) Capital investment on energy conservation equipment
Capital
investments on
energy efficient
equipment
(` in crore)
Manufacturing Division
Refining & Marketing
Jamnagar manufacturing Division (DTA)
Jamnagar manufacturing Division (SEZ)
Jamnagar manufacturing Division (C2)
Petrochemicals
Hazira manufacturing Division
Vadodara manufacturing division
Dahej manufacturing division
Nagothane manufacturing division
Patalganga Petro manufacturing division
Barabanki manufacturing division
Naroda manufacturing division
Silvassa manufacturing division
Alternate sources of energy
47.08
4.49
2.88
3.93
0.43
16.01
5.21
0.01
0.03
0.20
0.86
0.85
Energy
savings
(Gcal/hr)
56.65
6.30
16.19
8.94
2.08
16.58
1.39
1.68
0.01
0.19
0.08
1.19
B) Technology Absorption
Research and technology development
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 development at
Reliance focus on:
(i)
New products, processes and catalyst
development to support existing
business and create breakthrough
technologies for new businesses,
1.
Major efforts made towards
technology absorption
Refining and Marketing
• Crude to Chemicals by Multi zone
Catalytic Cracking technology (MCC)
• Conversion of waste plastics to
stable oil for reconversion to plastics
(circular economy)
• RIL Carbon Dioxide (CO2) capture
process from dilute refinery / power
plant flue gases
• Catalyst development for improvement
of cycle length of Diesel HydroTreating
Unit (DHT) units
(ii)
Advanced troubleshooting and
• Development of Hi-Active Fluid Catalytic
(iii)
Support to capital projects, and
profit and reliability improvements in
manufacturing plants.
Cracking (FCC) catalyst for Fluid
Catalytic Cracking Unit (FCCUs)
• Advanced support to Gasification
• Low cost process development for
valuable metals (Vanadium, Nickel)
extraction from gasification slag
• Green process and catalyst for direct
synthesis of Dimethyl Carbonate (DMC)
from CO2 and methanol
• Proprietary accelerated deactivation
protocol used to select the best vacuum
gas oil hydrotreater (VGOHT) catalysts
• Catalyst trials in FCC units for continuous
yield improvement/profitability
• Catalytic gasification studies in outside
lab proving the concept in continuous
bench scale unit
• FCC Catalyst switchover support
• Opportunity crude selection to
improve economics
• Deoxo catalyst evaluation
and recommendation
• Warranty replacement due to faulty
design of char filter fuses from
M/s. Porvair, based on R&D findings
• F-clean process development for reuse
of Porvair and PALL char filter fuses for
sustainable operation of gasifiers
• 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 hydrotreaters
• Various catalyst testing and
selection support to refining and
petrochemicals plants
• Light coker naphtha processing in SEZ
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
• Corrosion study on heavy crude
processing in Coker unit
• Study to analyse if Artificial Neural
Network (ANN) models can
substitute Linear Programming (LP)
models in planning and direct to
better optimal points
• Development of in-house composition
based RX models for plant monitoring
and LP applications
• High Sulphur Fuel Oil (HSFO) quality
analysis for scheduling support
• Near Infrared (NIR) based fast
crude characterisation for
assay update support
• Naphtha molecular assay for crude
scheduling and valuation
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Board’s Report (contd)
• Development of a Hybrid Polyolefin
Reactor model framework combining
the micro scale kinetics and meso scale
heat/mass transfer
Improvement of the performance and
reliability of the polymerisation process
•
• Capturing of complex physics in
• Development of catalyst for upgrading
crude biofuel to reduce acidity (Total
Acidity Number) and enhancing
the oil stability
• Commissioning and Troubleshooting of
Dow Therm purification system at SMD
and DMD respectively
Third Stage Separator (TSS) cyclone
separator and model validation with
experimental data
• Analysis of Oxychlorination
spent catalyst – Vinyl Chloride
Monomer (VCM) at VMD
• Bio-CBM process kinetic
model development
Petrochemicals
• Development for ICP and Homo Grades
Polypropylene (PP) with RIL Proprietary
Diester Catalyst System
• Gas phase Linear Low Density
Polyethylene (LLDPE)/High Density
Polyethylene (HDPE) production with
in-house catalysts & Metallocene
catalyst development for LLDPE
• Development of Functional ESBR grades
for silica-based composite for Green Tyre
• Valorisation of Poly Vinyl Chloride
(PVC) value chain
• Biodegradable Polymers for
packaging applications
• Development of internally plasticised
PVC with improved processability
• Value added Elastomeric
Ionomers development
• High performance
engineering thermoplastic
Polyphenylene Sulphide (PPS)
• Development of advanced Polyethylene
(PE) Products and Catalyst Technology
• Development of high strength fiber and
film for ballistic armours
• Chloride free CCR catalyst with higher
aromatics yield development
• Aromatics purification using zeolites
• Purification process for sulfolane
• Self-healing elastomer:
Polybutadiene rubber (PBR) grade
(Relnext) for enhanced (40%) tire life
• Coke Less Naphtha/Gas steam cracking
• Development of adsorbent and process
for 80% propylene recovery from
polyolefin plant off gas
• Non Hydrofluoric Acid (HA) route to
Linear Alkyl Benzene (LAB) using RIL
proprietary Ionic Liquid catalyst
• Purified Terephthalic Acid (PTA)/
Isophthalic acid (IPA)
process optimisation
232
• Shelf life evaluation of 7767 catalyst for
utilisation of adsorbent at HMD and JMD
• Evaluation of spare activated alumina
and activated carbon (Linde) at NMD for
improved shelf life
• Technical support to NMD cracker plant
for MS-3A of M/s. Grace. GC Dryers
Molecular Sieves sample analysis at
VMD for verification of usage
• Evaluation of Delair supplied activated
alumina of PTA off gas drier at DMD
• RCA of PE grade alumina (4 x 7 and
7 x12 size) supplied by M/s, Axens at
PE plant of HMD
• Evaluation of Molecular sieve 3A and
characterisation, GOP VMD
• Evaluation of activated alumina samples
supplied by M/s. Siddhartha Industries P.
Ltd. and M/s. Axens for PE plant of HMD
• Technical support to BBH/GOP-VMD
plant - Selection of acid activated clay
for benzene clay tower
• Rejection of PE-AA240MS grade
activated alumina of M/s, Axens for PE
plant at HMD – material – Evaluation
• Technical support to PP plant – VMD –
Adsorbent samples of PP plant – VMD
evaluated for shelf life and use
• Plant/technical support to Synthetic
Natural Gas (SNG) train-1 at Gasification-
JMD – adsorbent sample evaluation
• Technical support to LLDPE plant of
NMD. Spent AZ-300 adsorbent sample
tested for residual life
• Residual life analysis of 4.5 MT of
adsorbent – CD/COS PP HMD
• Chemical Oxygen Demand (COD) Bio
Culture trial in PMD Polyester ETP
• Evaluation of residual life of Ion
Exchange Resin – resin selection
and reuse for NMD
• Resin residual life estimation for DMD
Mono Ethylene Glycol (MEG) plant
• Residual life analysis of Ion Exchange
Resins for DI Plant NMD Plant
• Chloride analysis of DMD_EOEG_ CO2
Regenerator stream
• Chloride Guard bed adsorbent testing
for DTA/SEZ JMD
• Evaluation of Activated
Carbon from DMD Plant
• Advance Manufacturing support for
Styrene-Butadiene Rubber (SBR) plant
• Effluent treatment by Cavitation process
• Development of Technology information
package (TIP) for process modification
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
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
• Demonstrated Algae to ethanol concept
to produce more than 10,000 tons gallon
of liquid fuel per acre per year
• Technology development for commercial
production of Specialty products viz.
Super Proteins, Aqua and Animal Feed,
Nanocellulose, Non-Animal Leather,
High Strength Silk, Iron Fortified Protein
and Astaxanthin by leveraging RIL
algal R&D platform
Advanced Materials and Other R&D
Activities
• Development of indigenous polymer
electrolyte membrane (PEM) fuel
cell technology
• Development of a technology to produce
methane from un-minable, underground
coal reserves to increase production of
coal-bed methane
• Process for production of carbon fibres
from Poly Acrylo Nitrile (PAN) and
Petroleum Pitch
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 initiative in FY 2019-20 is
approximately ` 419 crores.
Apart from the above monetary savings,
there are other benefits from R&D, which
are as follows:
• Advance process control (APC)/Real time
optimisation (RTO) implementation in
major manufacturing facilities
• Transition from smart buyer
of technology to a flagship
developer of technology
• Modelling and simulation scale up,
• Future ready for next generation
support and advance trouble shooting
• Polymeric materials for 3D printing
• Graphene polymer and
elastomer composites
• Emerging advanced carbon, polymer
and other materials
businesses and mitigating disruption in
existing business
• Visionary disruptive business and
technology strategy to disrupt mobility,
industrial sector
• Sustaining competitive advantage
• Generating new intellectual properties
for business value creation
• Product stewardship
3. Information regarding imported technology (imported during last three
years)
Details of technology
imported
Halogenated Isobutylene Isoprene
Rubber (HIIR), JV with Sibur
Isobutylene Isoprene Rubber (IIR),
JV with Sibur
Technology
imported
from
Yarsintez,
Russia
Year of
import
2015-16
Sibur, Russia
2012
Status implementation /
absorption
Technology has been fully
absorbed in year 2020
Technology has been fully
absorbed in year 2019
Foreign Exchange Earnings and Outgo
Activities relating to export,
I.
initiatives to increase exports,
Developments of New export
markets for Products and Services
and Export Plan.
The Company has continued to maintain
focus and avail of export opportunities
based on economic considerations.
During the year, the Company has exports
(FOB value) worth ` 1,90,743 crore
(US$ 25.2 billion).
II.
Total Foreign Exchange Earned and
Used
(` in crore)
1,91,517
92,679
2,84,196
2,60,280
a.
b.
c.
Foreign Exchange
earned in terms of
Actual Inflows
Total savings in
Foreign Exchange
through products
manufactured by the
Company and deemed
exports (US$ 12.2
billion)
Subtotal (a+b)
Foreign Exchange
outgo in terms of
Actual Outflows
For and on behalf of Board of Directors
Mukesh D. Ambani
Chairman and Managing Director
4. Expenditure incurred on Research and Development
Mumbai, April 30, 2020
Sr. No. Particulars
a)
b)
Total
Capital
Revenue
(` in crore)
1,244
1,294
2,538
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Standalone Financial
Statements
Independent Auditors’ Report on Financial Statements
Balance Sheet
Statement of Profit and Loss
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
235
244
245
246
248
250
Note
1
2
3
Property, Plant and Equipment, Intangible Assets,
Capital Work-In-Progress and Intangible Assets Under
Development
Investments – Non-Current
Loans – Non-Current
4 Other Non-Current Assets
5
6
7
Inventories
Investments – Current
Trade Receivables
8 Cash And Cash Equivalents
9
Loans – Current
10 Other Financial Assets – Current
11
Taxation
12 Other Current Assets
13 Share Capital
14 Other Equity
15 Borrowings – Non-Current
16 Other Financial Liabilities – Non-Current
17 Provisions – Non-Current
18 Deferred Tax Liabilities (Net)
19 Other Non-Current Liabilities
20 Borrowings – Current
21 Trade Payables
22 Other Financial Liabilities – Current
23 Other Current Liabilities
24 Provisions – Current
25 Revenue From Operations
26 Other Income
27 Changes in Inventories of Finished Goods,
Work-In-Progress and Stock-In-Trade
28 Employee Benefits Expense
29 Finance Costs
30 Other Expenses
31 Earnings Per Share (EPS)
32 Related Parties Disclosures
33 Oil & Gas Disclosures
34 Contingent Liabilities and Commitments
35 Capital Management
36 Financial Instruments
37 Segment Information
38 Details of loans given, Investments made and
Guarantee given covered u/s 186 (4) of the
Companies Act, 2013.
39 Details of Research and Development Expenditure
40 Significant Arrangements During The Year
41 Events After The Reporting Period
260
261
266
269
269
270
270
270
271
271
271
271
272
273
274
276
276
276
276
277
277
277
278
278
278
278
279
279
283
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311
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
includes joint operations, which comprise the Balance sheet as
at March 31, 2020, 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 Standalone 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, 2020, 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 ‘Auditors’ Responsibilities
for the Audit of the Standalone Financial Statements’ section of our
Key audit matters
A. Capitalisation of property, plant and equipment
During the year ended March 31, 2020, the Company has incurred
significant capital expenditure. Further, out of the total additions to
property, plant and equipment of ` 1,13,300 crore in the current year,
significant part of the capitalisation pertains to the Gasification project,
including 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. All
units of the gasification complex and related integrated projects have
been successfully commissioned and capitalised during the year.
Significant level of judgement is involved to ensure that the aforesaid
capital expenditure/additions meet the recognition criteria 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.
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
judgement, were of most significance in our audit of the Standalone
Financial Statements for the financial year ended March 31, 2020.
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 Auditors’ 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.
How our audit addressed the key audit matter
Our audit procedures included and were not limited to the following:
• Performed walk-through of the capitalisation process and tested the
design and operating effectiveness of the controls in the process.
• Assessed the nature of the additions made to property, plant and
equipment and capital work-in-progress on a test check basis to test
that they meet the recognition criteria as set out in para 16 to 22 of
Ind AS 16, including any such costs incurred specifically for trial run.
• Assessed that the borrowing cost capitalised (including foreign
exchange loss to the extent it is considered as an adjustment
to interest cost) is in accordance with the accounting policy
of the Company.
• Reviewed the project completion/handover certificate provided by
the management to determine whether the asset is in the location
and condition necessary for it to be capable of operating in the
manner intended by the management.
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STANDALONEManagement ReviewNotice Financial StatementsGovernance Corporate Overview Independent Auditors’ Report
How our audit addressed the key audit matter
Key audit matters
B. Estimation of oil reserves, decommissioning liabilities and impairment evaluation of development rights
Refer to Note 33.2 on proved reserves and production on product and
geographical basis, Note C(A) on estimation of Oil and Gas reserves
and Note B.2 (s) on Accounting for Oil and Gas activity, Note C(B)
on Decommissioning Liabilities, Note C(C) on Property Plant and
Equipment/Intangible Assets and Note B.2 (j) on Provisions and Note
B.2 (i) on impairment of non- financial assets and Note 17 of the financial
statements.
the oil and gas reserves.
Our work included and were not limited to the following procedures:
• Performed walk-through of the estimation process associated with
The determination of the Company’s oil and natural gas reserves
requires significant judgements 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.
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 utilisation 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.
C. 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 33.3 and Note 33.4 (b)).
b) Claim against the Company in respect of gas said to have migrated
• Assessed the valuation methodology, including assumptions around
the key drivers of the cash flow forecasts including future oil and gas
prices, estimated reserves, discount rates used, etc. by engaging
valuation experts.
• Assessed the objectivity, independence and competence of
the Company’s specialists involved in the process and valuation
specialists engaged by us.
• Assessed whether the updated oil and gas reserve estimates were
included in the Company’s, accounting for amortisation/depletion and
disclosures of proved reserves and proved developed reserves in the
financial statements.
• Tested the assumption used in determining the decommissioning
provisions. Also compared these assumptions with the previous year
and enquired for reasons for any variations.
Our audit procedures included and were not limited to the following:
• Assessed the 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.
• Discussed with the management on the development in these
litigations during the year ended March 31, 2020.
from neighbouring blocks (KGD6) (Note 33.4 (a)).
• Rolled out of enquiry letters to the Company’s legal counsel and
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 33.4 (c)).
d) Suit for specific performance of a contract for supply of natural gas
before the Hon’ble Bombay High Court (Note 33.4(d)).
e) Arbitration proceedings relating to notice of withdrawal issued to Niko
(NECO) Limited (Note 33.4(e)).
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.
noted the responses received.
• Assessed the responses received from Company’s legal counsel by
engaging legal experts.
• Assessed the objectivity, independence and competence of
the Company’s legal counsel involved in the process and legal
experts engaged by us.
• Reviewed the disclosures made by the Company in the financial
statements in this regard.
Key audit matters
D. 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.
E. Fair value measurement
As at March 31, 2020, the Company has investments of ` 78,107 crore
in the equity and Optionally Convertible Preference Shares (‘OCPS’) of
Jio Digital Fiber Private Limited (‘JDFPL’) and Reliance Jio Infratel Private
Limited (‘RJIPL’) which are measured at fair value as per Ind AS 109 read
with Ind AS 113.
These investments are Level 3 investments as per the fair value hierarchy
in Ind AS 113 and accordingly determination of fair value is based on
a high degree of judgement and input from data that is not directly
observable in the market. Further, the fair value is significantly influenced
by the expected pattern of future benefits of the tangible assets of JDFPL
(fiber assets) and RJIPL (tower assets). Refer Note 2 and Note 36A in the
financial statements.
Accordingly, the same has been considered as a key audit matter.
F. Impact due to significant volatility in crude prices
Due to the ongoing geopolitical and economic situation in the world,
there has been significant slowdown of economic activities and significant
volatility in crude oil prices during March 2020 and subsequent to the
year end.
Management has assessed the impact of the aforesaid events on the
financial statements specifically in areas of inventory impairment of
certain investments, development rights, etc. including subsequent
events up to the reporting date. Pursuant to such evaluation, the
Company has valued its inventories at net realisable value and
recognised a loss of ` 4,245 crore (net of current tax of ` 899 crore)
which has been disclosed as exceptional items in the statement of
profit and loss (Refer Note C (I) of Critical Accounting Judgements
and Key sources of Estimation uncertainty and Note 30.3). Estimates
and judgements are involved in determining the net realisable value
of inventory including related hedges, impairment of investments and
development rights stated above.
Accordingly, the same has been considered as a key audit matter.
How our audit addressed the key audit matter
Our procedures included and were not limited to the following:
• Assessed the complexity of the IT environment by engaging IT
specialists and through discussion with the head of IT and internal
audit and identified IT applications that are relevant to our audit.
• Assessed 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.
• Assessed 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.
• Assessed the operating effectiveness of controls relating to data
transmission through the different IT systems to the financial
reporting systems by engaging IT specialists.
Our audit procedures included and were not limited to the following:
• Reviewed the fair valuation reports obtained by the management by
involvement of external valuation experts.
• Assessed the methodology and the assumptions applied in
determining the fair value by engaging valuation specialists.
• Assessed the objectivity, independence and competence of the
Company’s external specialists involved in the process and valuation
specialists engaged by us.
• Assessed the adequacy of disclosure in Note 2 and Note 36A in the
financial statements.
Our audit procedures included and were not limited to the following:
• Obtained and reviewed the management impact assessment on
account of reduction in oil prices, including judgement and estimates
applied in determining the areas of impact.
• Assessed the determination of impact on account of inventories
valued at net realisable value, including related hedges.
• Performed subsequent event procedures upto the date of
the audit report.
• Assessed the disclosure made in Note 30.3 in the
financial statements.
• Also refer procedures stated in Point B relating to ‘Estimation of oil
reserves, decommissioning liabilities and impairment evaluation of
development rights’ and Point G relating to ’Investments in Reliance
Energy Generation and Distribution Limited.
236
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STANDALONENaye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Independent Auditors’ Report
Key audit matters
G. Investments in Reliance Energy Generation and Distribution Limited
Management regularly reviews whether there are any indicators of
impairment on the investments made by the Company (Refer Note B.2
(q).i.E by reference to the requirements under Ind AS 36 “Impairment of
Assets”). Accordingly, management has identified impairment indicators
by considering internal/external sources of information in Reliance Energy
Generation and Distribution Limited (REGDL) and RHUSA Inc. (subsidiary
of REGDL). As at March 31, 2020 the Company has an investment of `
15,842 crore in REGDL. Further, the Company has also given a guarantee
on the borrowings of RHUSA Inc. (subsidiary of REGDL) of ` 22,700
crore. As a result, an impairment assessment has been performed by the
Company by comparing the carrying value of these investments (including
the guarantee given by the Company on the borrowings of RHUSA Inc.)
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 the management by considering estimates such as
future oil and natural gas prices, reserves volumes, discount rates etc.
Management has also involved external specialists for determining of
reserve volumes and value in use.
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 REGDL to identify any
disclosure for impairment of assets in these financial statements.
• Performed inquiry procedures with the auditor of RHUSA Inc.
in relation to the assumptions used (future oil and gas prices,
estimated reserves, discount rates etc.) for determining the value
in use, including the testing of IT controls and information provided
by the entity (IPE) on the IT application used for reserve and well
data management.
• Assessed the objectivity, independence and competence of
the Company’s specialists and external specialists involved
in the process.
• Assessed assumptions used for determining value in use. Further,
also performed testing of IPE and assessed the recoverable value
headroom available.
Accordingly, it has been considered as a key audit matter.
H. Transfer of identified liabilities from Reliance Jio Infocomm Limited
During the year, Reliance Jio Infocomm Limited (subsidiary of the
Company or ‘RJIL’) and certain classes of its creditors have entered
into a scheme of arrangement whereby the certain identified liabilities
aggregating to `104,365 crore together with interest accrued (but not
paid thereon), hedges along with receivables or payables and all other
balances with respect to the identified liabilities of RJIL have been
transferred to the Company with equivalent consideration, in accordance
with the order dated March 13, 2020 issued by National Company Law
Tribunal. Refer Note 32 (III) (6) in the financial statements.
Our audit procedures included and were not limited to the following:
• Understood the structure of the transaction from the management.
• Obtained and read the order issued by NCLT to assess that
the accounting treatment has been applied in accordance
with the Scheme.
• Assessed the measurement, recognition and disclosure of the said
transaction in line with the applicable Indian Accounting Standards.
Being a significant transaction that occurred during the current year, it has
been considered as a key audit matter.
INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITORS’ 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.
238
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
judgements 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 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.
AUDITORS’ 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 auditors’ 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 judgement 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 with reference
to financial statements 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 auditors’ 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 auditors’ 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, 2020 and are therefore
the key audit matters. We describe these matters in our auditors’
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
` Nil as at March 31, 2020, total expenditure of ` 177 crore and
the elements making up the Cash Flow Statement for the year
ended March 31, 2020 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.
2. As required by Section 143(3) of the Act, we report that:
(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;
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STANDALONENaye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Independent Auditors’ Report
(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) On the basis of the written representations received from
the directors as on March 31, 2020 taken on record by the
Board of Directors, none of the directors is disqualified as
on March 31, 2020 from being appointed as a director in
terms of Section 164 (2) of the Act;
(f) 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, 2020 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;
(h) With respect to the other matters to be included in
the Auditors’ 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 34 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 ` 1.63 crore which are held in abeyance
due to pending legal cases.
For D T S & Associates LLP
Chartered Accountants
ICAI Firm Reg. Number:
142412W/W100595
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Reg. Number:
324982E/E300003
per T P Ostwal
Partner
Membership No.: 030848
UDIN: 20030848AAAAAR2144
per Vikas Kumar Pansari
Partner
Membership No.: 093649
UDIN: 20093649AAAAAN1906
Mumbai
Date: April 30, 2020
Mumbai
Date: April 30, 2020
ANNEXURE 1
TO THE INDEPENDENT AUDITORS’ 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.
(b) 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.
(c) 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 leasehold
land of ` 83 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 Standalone Financial Statements).
The management has conducted physical verification
of inventory at reasonable intervals during the year
and no material discrepancies were noticed on such
physical verification.
According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to
companies, firms, Limited Liability Partnerships or other parties
covered in the register maintained under Section 189 of the
Act. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of
the Order are not applicable to the Company and hence not
commented upon.
(ii)
(iii)
(iv)
In our opinion and according to the information and
explanations provided to us, the Company has not granted
(v)
(vi)
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 of the Act.
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 Act, related to the manufacturing activities, and
are of the opinion that prima facie, the specified accounts
and records have been made and maintained. We have not,
however, made a detailed examination of the same.
(vii) (a)
The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues
including Provident fund, Employees’ State Insurance,
Income-tax, Sales-tax, Goods and Services tax, 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, 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.
240
241
STANDALONENaye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Independent Auditors’ Report
ANNEXURE 1
RELIANCE INDUSTRIES LIMITED
TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF
ANNEXURE 2
TO THE INDEPENDENT AUDITORS’ REPORT OF EVEN DATE 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, 2020 on account of any dispute, are as follows:
Name of the Statute
Nature of Dues
Income Tax Act, 1961
Central Excise Act, 1944
Income Tax
Excise Duty and
Service Tax
Amount
(` in crore)
Period to which the amount relates
Forum where the dispute is pending
48 2011-12 and 2012-13
0.13 Various Years from 1990-91 to 2017-18
713 Various Years from 1991-92 to 2016-17
Commissioner of Income-Tax (Appeals)
Commissioner of Central Excise
(Appeals)
Central Excise and Service Tax
Appellate Tribunal
Central Sales Tax Act,
1956 and Sales Tax Act of
various States
Customs Act, 1962
Sales Tax/ VAT
and Entry Tax
5 Various Years from 2006-07 to 2009-10 High Court
496 Various Years from 1983-88 to 2011-12
83 Various Years from 2000-01 to 2011-12
Sales Tax Appellate Tribunal
High Court
Customs Duty
20 2007-08
Central Excise and Service Tax
Appellate Tribunal
(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 the Act.
(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 LLP
Chartered Accountants
ICAI Firm Reg. Number:
142412W/W100595
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Reg. Number:
324982E/E300003
per T P Ostwal
Partner
Membership No.: 030848
UDIN: 20030848AAAAAR2144
per Vikas Kumar Pansari
Partner
Membership No.: 093649
UDIN: 20093649AAAAAN1906
Mumbai
Date: April 30, 2020
Mumbai
Date: April 30, 2020
(viii) In our opinion and according to the information and
explanations provided by the management, the Company has
not defaulted in repayment of loans or borrowing to a financial
institution, bank or government or dues to debenture holders.
(ix)
(x)
(xi)
In our opinion and according to the information and
explanations provided by the management, the Company has
utilised 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.
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 Act.
(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 the Act
where applicable and the details have been disclosed in
the financial statements, as required by the applicable
accounting standards.
242
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”) which includes joint operations
as of March 31, 2020 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 (the
“Guidance Note”) issued by the Institute of Chartered Accountants of
India. These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business,
including adherence to 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 Act.
AUDITORS’ 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 and the Standards on Auditing
as specified under Section 143(10) of the Act, 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 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
auditors’ 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 over financial reporting with reference to these Standalone
Financial Statements.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER
FINANCIAL REPORTING WITH REFERENCE TO THESE
STANDALONE 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
over financial reporting with reference to these Standalone Financial
Statements were operating effectively as at March 31, 2020, 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 LLP
Chartered Accountants
ICAI Firm Reg. Number:
142412W/W100595
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Reg. Number:
324982E/E300003
per T P Ostwal
Partner
Membership No.: 030848
UDIN: 20030848AAAAAR2144
per Vikas Kumar Pansari
Partner
Membership No.: 093649
UDIN: 20093649AAAAAN1906
Mumbai
Date: April 30, 2020
Mumbai
Date: April 30, 2020
243
STANDALONENaye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Balance Sheet
As at 31st March, 2020
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
Other Financial Liabilities
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 Enterprises
Other than Micro and Small Enterprises
Other Financial Liabilities
Other Current Liabilities
Provisions
Total Current Liabilities
Total Liabilities
Total Equity and Liabilities
Significant Accounting Policies
See accompanying Notes to the Financial Statements
As per our Report of even date
For D T S & Associates LLP
Chartered Accountants
(Registration No.142412W/ W100595)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Alok Agarwal
Chief Financial Officer
Mumbai
Date: April 30, 2020
244
Notes
As at
31st March, 2020
As at
31st March, 2019
(` 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
24
2,97,847
15,638
8,624
12,327
4,19,073
44,348
4,458
8,02,315
38,802
70,030
7,483
8,443
15,028
16,100
10,711
1,66,597
9,68,912
6,339
4,18,245
4,24,584
1,78,751
2,924
1,410
50,556
504
2,34,145
51,276
116
70,932
1,20,618
66,169
1,072
3,10,183
5,44,328
9,68,912
1,94,895
1,05,155
8,293
6,402
2,72,043
31,806
4,287
6,22,881
44,144
59,640
12,110
3,768
4,876
17,127
11,199
1,52,864
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 to 43
For and on behalf of the Board
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P.K. Kapil
Nita M. Ambani
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K.V. Chowdary
Chairman and Managing Director
Executive Directors
Non-Executive Directors
Statement of Profit and Loss
For the year ended 31st March, 2020
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
Employee Benefits Expense
Finance Costs
Depreciation/Amortisation and Depletion Expense
Other Expenses
Total Expenses
Profit Before Exceptional Item and Tax
Exceptional Item (Net of Tax)
Profit Before Tax*
TAX EXPENSES*
Current Tax
Deferred Tax
Profit for the Year
OTHER COMPREHENSIVE INCOME
i. Items that will not be reclassified to Profit or Loss
ii. Income tax relating to items that will not be reclassified to Profit or Loss
iii. Items that will be reclassified to Profit or Loss
iv. Income tax relating to items that will be reclassified to Profit or Loss
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 `) – Before Exceptional Item
Basic (in `) – After Exceptional Item
Diluted (in `) – Before Exceptional Item
Diluted (in `) – After Exceptional Item
Significant Accounting Policies
See accompanying Notes to the Financial Statements
Notes
2019-20
3,62,869
2,333
3,65,202
14,322
3,50,880
14,541
3,65,421
2,37,342
7,292
77
14,902
6,067
12,105
9,728
33,347
3,20,860
44,561
4,245
40,316
7,200
2,213
30,903
(392)
(944)
(6,921)
1,183
(7,074)
23,829
55.45
48.75
55.44
48.75
25
26
27
28
29
1
30
30.3
11
18
26.1
26.2
31
31
31
31
1 to 43
(` in crore)
2018-19
4,00,139
1,444
4,01,583
16,082
3,85,501
8,822
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
–
47,367
9,440
2,764
35,163
76,892
(16,569)
(827)
178
59,674
94,837
55.48
55.48
55.47
55.47
*Profit Before Tax is after Exceptional Item and tax thereon and Tax Expenses are excluding the Current Tax on Exceptional Item.
As per our Report of even date
For and on behalf of the Board
For D T S & Associates LLP
Chartered Accountants
(Registration No.142412W/ W100595)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Alok Agarwal
Chief Financial Officer
Mumbai
Date: April 30, 2020
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Chairman and Managing Director
Executive Directors
Non-Executive Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P.K. Kapil
Nita M. Ambani
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K.V. Chowdary
245
STANDALONENaye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Statement of Changes in Equity
For the year ended 31st March, 2020
A. EQUITY SHARE CAPITAL
Balance as at
1st April, 2018
6,335
Change during
the year 2018-19
4
Balance as at
31st March, 2019
6,339
Change during
the year 2019-20
-*
*Shares of ` 57,36,870 issued on exercise of employee stock options.
B. OTHER EQUITY
As at 31st March, 2020
Share Application Money Pending Allotment
RESERVES AND SURPLUS
Capital Reserve
Securities Premium
Debenture Redemption Reserve
Share Based Payments Reserve
General Reserve
Retained Earnings
Special Economic Zone Reinvestment
Reserve
Balance
as at
1st April,
2019
Total
Comprehensive
Income for the
Year
Dividends
Tax on
Dividend
Transfer
to/(from)
Retained
Earnings
On
Employee
Stock
Options
2
-
-
-
-
(1)
1
291
46,306
9,375
9
2,55,000
26,808
-
-
-
-
-
-
30,903
-
-
-
-
-
-
(3,852)
-
-
-
-
-
-
(732)
-
-
-
-
-
-
(5,500)
5,500
Other Comprehensive Income
61,192
(7,074)
-
-
Total
3,98,983
23,829 (3,852)
(732)
-
-
(` in crore)
Balance as at
31st March, 2020
6,339
(` in crore)
Balance as at
31st March, 2020
-
23
-
(5)
-
-
-
-
17
291
46,329
9,375
4
2,55,000
47,627
5,500
54,118
4,18,245
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
(` 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
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)
-
-
As per our Report of even date
For and on behalf of the Board
For D T S & Associates LLP
Chartered Accountants
(Registration No.142412W/ W100595)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Alok Agarwal
Chief Financial Officer
Mumbai
Date: April 30, 2020
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P.K. Kapil
Nita M. Ambani
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K.V. Chowdary
-
132
-
(3)
-
-
-
116
291
46,306
9,375
9
2,55,000
26,808
61,192
3,98,983
Chairman and Managing Director
Executive Directors
Non-Executive Directors
246
247
STANDALONENaye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
CHANGE IN LIABILITY ARISING FROM FINANCING ACTIVITIES
Borrowing – Non-Current (Refer Note 15)
Borrowing – Current (Refer Note 20)
Borrowing – Non-Current (Refer Note 15)
Borrowing – Current (Refer Note 20)
1st April,
2019
1,22,623
39,097
1,61,720
1st April,
2018
1,01,642
15,239
1,16,881
Cash flow*
78,072
11,828
89,900
Cash flow
17,395
24,147
41,542
Foreign
exchange
movement
10,374
351
10,725
Foreign
exchange
movement
3,586
(289)
3,297
(` in crore)
31st March,
2020
2,11,069
51,276
2,62,345
(` in crore)
31st March,
2019
1,22,623
39,097
1,61,720
* Includes Consideration for Non-Current Borrowings transferred from RJIL through scheme (Refer Note 40.1).
As per our Report of even date
For and on behalf of the Board
For D T S & Associates LLP
Chartered Accountants
(Registration No.142412W/ W100595)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Alok Agarwal
Chief Financial Officer
Mumbai
Date: April 30, 2020
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Chairman and Managing Director
Executive Directors
Non-Executive Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P.K. Kapil
Nita M. Ambani
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K.V. Chowdary
Cash Flow Statement
For the year ended 31st March, 2020
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Tax as per Statement of Profit and Loss
(After Exceptional Item and Tax thereon)
Adjusted for:
Loss on Buy back of Debentures
(Profit) / Loss on Sale / Discard of Property, Plant & Equipment (Net)
Depreciation / Amortisation and Depletion Expense
Effect of Exchange Rate Change
Net Gain on Financial Assets#
Tax on Exceptional item
Dividend Income
Interest Income#
Finance costs
Operating Profit before Working Capital Changes
Adjusted for:
Trade and Other Receivables
Inventories
Trade and Other Payables
Cash Generated from Operations
Taxes Paid (Net)
Net Cash Flow from Operating Activities*
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Property, Plant and Equipment and Intangible Assets
Consideration for Capex Liabilities transferred from RJIL through scheme$&
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 (including Advance Received)
Net Cash Flow for Other Financial Assets
Interest Income
Dividend Income from Subsidiaries/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
Payment of Lease Liabilities
Proceeds from Borrowings – Non-Current
Consideration for Non-Current Borrowings transferred from RJIL through scheme&
Repayment of Borrowings – Non-Current
Borrowings – Current (Net)
Dividends Paid (including Dividend Distribution Tax)
Interest Paid
Net Cash Flow from 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)
Includes amount spent in cash towards Corporate Social Responsibility is ` 909 crore (Previous Year ` 849 crore).
# Other than Financial Services Segment.
*
$ Net of repayment of ` 5,529 crore.
& Refer Note 40.1.
2019-20
(` in crore)
2018-19
40,316
47,367
60
192
9,728
(253)
(1,717)
(899)
(350)
(10,899)
12,105
48,283
5,050
5,342
23,139
81,814
(5,254)
76,560
(23,183)
31,849
15
(2,12,106)
65,365
(9,86,656)
10,02,471
(24,620)
3,863
303
47
(1,42,652)
18
1
(97)
20,323
66,987
(9,238)
11,828
(4,584)
(14,471)
70,767
4,675
3,768
8,443
-
(15)
10,558
(1,540)
(2,252)
-
(449)
(5,517)
9,751
57,903
(24,011)
(4,575)
9,300
38,617
(9,426)
29,191
(24,971)
-
103
(28,827)
97
(10,01,730)
10,17,713
(19,150)
2,368
3
445
(53,949)
117
2
-
23,989
-
(6,594)
24,147
(4,282)
(11,584)
25,795
1,037
2,731
3,768
248
249
STANDALONENaye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview A. CORPORATE INFORMATION
A liability is current when:
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, digital services and
financial 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, 2019, Ind AS 116 – “Leases” (Ind
AS 116) supersedes Ind AS 17 – “Leases”. The Company
has adopted Ind AS 116 using the prospective approach.
The application of Ind AS 116 has resulted into recognition
of ‘Right-of-Use’ asset with a corresponding Lease Liability
in the Balance Sheet.
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
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.
250
-
-
-
-
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 and Petrochemical segment & SEZ
units/developer which are depreciated using straight-
line method. Depreciation is provided based on
useful life of the assets as prescribed in Schedule II
to the Companies Act, 2013 except in respect of the
following assets, where useful life is different than
those prescribed in Schedule II;
Particular
Depreciation
Fixed Bed Catalyst (useful
life: 2 years or more)
Fixed Bed Catalyst (useful
life: up to 2 years)
Premium on Leasehold
Land (range upto 99 years)
Plant and Machinery (useful
life: 25 to 40 years)
Over its useful life as
technically assessed
100% depreciated in the
year of addition
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
The Company, as a lessee, recognises a right-of-use
asset and a lease liability for its leasing arrangements,
if the contract conveys the right to control the use of
an identified asset.
The contract conveys the right to control the use
of an identified asset, if it involves the use of an
identified asset and the Company has substantially
all of the economic benefits from use of the asset
and has right to direct the use of the identified asset.
The cost of the right-of-use asset shall comprise of
the amount of the initial measurement of the lease
liability adjusted for any lease payments made at
or before the commencement date plus any initial
direct costs incurred. The right-of-use assets is
subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any
and adjusted for any remeasurement of the lease
liability. The right-of-use assets is depreciated using
the straight-line method from the commencement
date over the shorter of lease term or useful life of
right-of-use asset.
The Company measures the lease liability at the
present value of the lease payments that are not
paid at the commencement date of the lease. The
lease payments are discounted using the interest
rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined,
the Company uses incremental borrowing rate.
For short-term and low value leases, the Company
recognises the lease payments as an operating
expense on a straight-line basis over the lease term.
(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.
A summary of amortisation/depletion policies applied to the Company’s Intangible Assets to the extent of depreciable
amount is as follows:
Particular
Depreciation
Over a period of 5 years.
Technical Know-How Over the useful life of the underlying assets ranging from 5 years to 35 years.
Computer Software
Development Rights 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.
251
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
(e) Research and Development Expenditure
Revenue expenditure pertaining to research is
charged to the Statement of Profit and Loss as
and when incurred.
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
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.
(i)
Impairment of Non-Financial Assets
– Property, Plant and Equipment and
Intangible Assets
The Company assesses at each reporting date as
to whether there is any indication that any Property,
Plant and Equipment and Intangible Assets or group
of Assets, called Cash Generating Units (CGU)
may be impaired. If any such indication exists, the
recoverable amount of an asset or CGU is estimated
to determine the extent of impairment, if any. When
it is not possible to estimate the recoverable amount
of an individual asset, the Company estimates
the recoverable amount of the CGU to which
the asset belongs.
An impairment loss is recognised in the Statement of
Profit and Loss to the extent, asset’s carrying amount
exceeds its recoverable amount. The recoverable
amount is higher of an asset’s fair value less cost of
disposal and value in use. Value in use is based on
the estimated future cash flows, discounted to their
present value using pre-tax discount rate that reflects
current market assessments of the time value of
money and risk specific to the assets.
The impairment loss recognised in prior accounting
period is reversed if there has been a change in the
estimate of recoverable amount.
(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) Contingent Liabilities
Disclosure of contingent liability is made when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable
that an outflow of resources embodying economic
benefits will be required to settle or a reliable
estimate of amount cannot be made.
(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 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. 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 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 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.
Remeasurement gains and losses arising from
adjustments and changes in actuarial assumptions
are recognised in the period in which they occur in
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.
that it relates to items recognised in the Other
Comprehensive Income. In which case, the tax is also
recognised in Other Comprehensive Income.
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.
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.
(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 28.2.
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.
(m) 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
(o) Foreign Currencies Transactions and
Translation
Transactions in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction.
252
253
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
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.
(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 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
254
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
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 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.
(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 Value Through Profit or Loss,
are adjusted to the fair value on initial
recognition. Purchase and sale of Financial
Assets are recognised using trade
date accounting.
B. Subsequent Measurement
a)
Financial Assets measured at
Amortised Cost (AC)
A Financial Asset is measured at
Amortised Cost if it is held within a
business model whose objective is
to hold the asset in order to collect
contractual cash flows and the
contractual terms of the Financial Asset
give rise on specified dates to cash
flows that represent solely payments of
principal and interest on the principal
amount outstanding.
b)
Financial Assets measured at Fair
Value Through Other Comprehensive
Income (FVTOCI)
A Financial Asset is measured at
FVTOCI if it is held within a business
model whose objective is achieved by
both collecting contractual cash flows
and selling Financial Assets and the
contractual terms of the Financial Asset
give rise on specified dates to cash
flows that 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.
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
E.
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.
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).
255
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
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. For
trade and other payables maturing within
one year from the balance sheet date, the
carrying amounts approximate fair value due
to the short maturity of these instruments.
iii. Derivative Financial Instruments and
Hedge Accounting
The Company uses various derivative financial
instruments such as interest rate swaps, currency
swaps, forwards & options and commodity
contracts to mitigate the risk of changes in
interest rates, exchange rates and commodity
prices. 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
256
gains or losses arising from changes in the
fair value of derivatives are taken directly to
Statement of Profit and Loss, except for the
effective portion of cash flow hedge which is
recognised in Other Comprehensive Income and
later to Statement of Profit and Loss when the
hedged item affects profit or loss or is treated as
basis adjustment if a hedged forecast transaction
subsequently results in the recognition of a
Non-Financial Assets or Non-Financial liability.
Hedges that meet the criteria for hedge
accounting are accounted for as follows:
A. Cash Flow Hedge
The Company designates derivative
contracts or non-derivative Financial Assets/
Liabilities as hedging instruments to mitigate
the risk of movement in interest rates and
foreign exchange rates for foreign exchange
exposure on highly probable future cash
flows attributable to a recognised asset or
liability or forecast cash transactions.
When a derivative is designated as a cash
flow hedging instrument, the 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.
(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.
Non-current assets held for sale are neither
depreciated nor amortised.
Assets and liabilities classified as held for sale are
measured at the lower of their carrying amount
and fair value less cost of sale and are presented
separately in the Balance Sheet.
(s) Accounting for Oil and Gas Activity
The Company has adopted Successful Efforts
Method (SEM) of accounting for its Oil and Gas
activities. The policy of recognition of exploration
and evaluation expenditure is considered in line with
the principle of SEM. Seismic costs, geological and
geophysical studies, petroleum exploration license
fees and general and administration costs directly
attributable to exploration and evaluation activities
are expensed off. The costs incurred on acquisition
of interest in oil and gas blocks and on exploration
and evaluation other than those which are expensed
off are accounted for as Intangible Assets Under
Development. All development costs incurred in
respect of proved reserves are also 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.
(t) 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.
257
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
supply chain disruption, unavailability of personnel,
closure/lockdown of production facilities etc. On
24th March, 2020, the Government of India ordered
a nationwide lockdown for 21 days which further got
extended till 3rd May, 2020 to prevent community spread
of COVID-19 in India resulting in significant reduction in
economic activities. Further, during March 2020/April
2020, there has been significant volatility in oil prices,
resulting in uncertainty and reduction in oil prices.
In assessing the recoverability of Company’s assets such
as Investments, Loans, intangible assets, Goodwill, Trade
receivable etc. the Company has considered internal
and external information. The Company has performed
sensitivity analysis on the assumptions used basis the
internal and external information/indicators of future
economic conditions, the Company expects to recover the
carrying amount of the assets.
(A) ESTIMATION OF OIL AND GAS RESERVES
The determination of the Company’s estimated oil and
natural gas reserves requires significant judgements
and estimates to be applied and these are regularly
reviewed and updated. Factors such as the availability of
geological and engineering data, reservoir performance
data, acquisition and divestment activity, drilling of
new wells, and commodity prices all impact on the
determination of the Company’s estimates of its oil and
natural gas reserves. The Company bases it’s proved
reserves estimates on the requirement of reasonable
certainty with rigorous technical and commercial
assessments based on conventional industry practice and
regulatory requirements.
Estimates of oil and natural gas reserves are used to
calculate depletion charges for the Company’s oil and gas
properties. The impact of changes in estimated proved
reserves is dealt with prospectively by 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 33.2.
(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) PROPERTY PLANT AND EQUIPMENT/
INTANGIBLE ASSETS
Estimates are involved in determining the cost attributable
to bringing the assets to the location and condition
necessary for it to be capable of operating in the manner
intended by the management. 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
(H) FAIR VALUE MEASUREMENT
For estimates relating to fair value of financial instruments
refer note 36 of financial statements.
GLOBAL HEALTH PANDEMIC ON COVID-19
AND FALL IN CRUDE PRICE
The outbreak of Coronavirus (COVID-19) pandemic
globally and in India is causing significant disturbance
and slowdown of economic activity. In many countries,
businesses are being forced to cease or limit their
operations for long or indefinite periods of time. Measures
taken to contain the spread of the virus, including travel
bans, quarantines, social distancing, and closures
of non-essential services have triggered significant
disruptions to businesses worldwide, resulting in an
economic slowdown.
COVID19 is significantly impacting business operation
of the companies, by way of interruption in production,
take into account anticipated technological changes. The
depreciation/amortisation for future periods is revised if
there are significant changes from previous estimates.
(D) RECOVERABILITY OF TRADE RECEIVABLES
(I)
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 (including litigations) 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.
258
259
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
1.
PROPERTY, PLANT & EQUIPMENT, CAPITAL WORK-IN-PROGRESS, INTANGIBLE ASSETS AND INTANGIBLE ASSETS
UNDER DEVELOPMENT
Gross Block
Depreciation/Amortisation and Depletion
Net Block
(` in crore)
1.4 Capital work-in-Progress and Intangible Assets under Development includes:
i)
ii)
` 2,348 crore (Previous Year ` 21,823 crore) on account of Project Development Expenditure.
` 1,669 crore (Previous Year ` 6,625 crore) on account of cost of construction materials at site.
As at
01-04-2019
Additions/
Adjustments
Deductions/
Adjustments
As at
31-03-2020
As at
01-04-2019
For the
Year #
Deductions/
Adjustments
As at
31-03-2020
As at
31-03-2020
As at
31-03-2019
1.5 Additions in Property, Plant & Equipment, Capital work-in-progress, Intangible Assets and Intangible assets under Development
includes ` 5,715 crore (net loss) [Previous Year ` 4,580 crore (net loss)] on account of exchange difference during the year.
Description
PROPERTY, PLANT AND
EQUIPMENT
Own Assets:
Land
Buildings
Plant & Machinery
Electrical Installations
Equipments$
Furniture & Fixtures
Vehicles
Ships
Aircrafts & Helicopters
Sub-Total
Right-of-Use Assets:
Land
Plant & Machinery
Ships
Sub-Total
Total (A)
INTANGIBLE ASSETS *
Technical Knowhow Fees
Software
Development Rights
Others
Total (B)
Total (A + B)
Previous Year
CAPITAL
WORK-IN-PROGRESS
INTANGIBLE ASSETS
UNDER DEVELOPMENT
38,834
16,653
2,29,218
6,727
4,549
712
569
418
46
2,97,726
17,702
318
10
18,030
3,15,756
4,558
1,063
42,793
864
49,278
3,65,034
140
3,186
98,526
4,513
1,121
122
69
90
-
1,07,767
-
4,302
-
4,302
1,12,069
534
93
455
149
1,231
1,13,300
-
22
1,906
277
236
127
34
6
-
38,974
19,817
3,25,838
10,963
5,434
707
604
502
46
2,608 4,02,885
6
-
-
6
2,614
17,696
4,620
10
22,326
4,25,211
5,092
-
964
192
36,412
6,836
1,013
-
7,028
43,481
9,642 4,68,692
-
6,323
1,05,227
3,772
2,529
545
426
322
38
1,19,182
1,362
307
10
1,679
1,20,861
2,910
988
36,237
850
40,985
1,61,846
-
817
6,500
495
631
44
53
12
1
8,553
171
187
-
358
8,911
244
42
479
135
900
9,811
-
3
1,752
262
231
121
33
5
-
2,407
1
-
-
1
2,408
-
192
6,836
-
7,028
9,436
-
7,137
1,09,975
4,005
2,929
468
446
329
39
1,25,328
1,532
494
10
2,036
1,27,364
3,154
838
29,880
985
34,857
1,62,221
3,53,009
13,000
975 3,65,034
1,52,045
10,688
887
1,61,846
38,974
12,680
2,15,863
6,958
2,505
239
158
173
7
2,77,557
16,164
4,126
-
20,290
2,97,847
1,938
126
6,532
28
8,624
3,06,471
2,03,188
15,638
38,834
10,330
1,23,991
2,955
2,020
167
143
96
8
1,78,544
16,340
11
-
16,351
1,94,895
1,648
75
6,556
14
8,293
2,03,188
1,05,155
12,327
6,402
$ Includes office equipments.
* Other than internally generated.
# Depreciation/Amortisation and Depletion Expense for the year includes depreciation of ` 83 crore (Previous Year ` 130 crore) capitalised during the year.
Thus, the net amount ` 9,728 crore has been considered in Statement of Profit and Loss.
1.1 RIGHT-OF-USE (LAND) INCLUDES:
i)
ii)
` 83 crore (Previous Year ` 89 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 ` 2,03,700).
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.
260
1.6 For Assets given as security – Refer Note 15.1 .
1.7 The Company has adopted Ind AS 116 ‘Leases’ effective April 1, 2019 and applied the Standard to its leases, pursuant to which it
has reclassified its leased asset as Right-of-Use Assets. Further, additions include recognition of leasing arrangement towards
Plant and Machinery as Right-of-use Assets of ` 4,302 crore and a Lease Liability of ` 3,081 crore as at April 1, 2019. The impact
on the profit for the year is not material.
Particulars
2.
INVESTMENTS – NON-CURRENT
INVESTMENTS MEASURED AT AMORTISED COST
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
In Government Securities
Unquoted
6 Years National Savings Certificates (Deposited with Sales Tax Department
and Other Government Authorities) [` 39,087 (Previous Year ` 33,077]
Total of Investments measured at Amortised Cost
INVESTMENTS MEASURED AT COST
In Equity Shares of Associate Companies
Quoted, fully paid up
Reliance Industrial Infrastructure Limited of ` 10 each
In Equity Shares of Associate Companies
Unquoted, fully paid up
Gujarat Chemicals Port Limited (Formerly Gujarat Chemical Port Terminal
Company Limited) of ` 1 each
Indian Vaccines Corporation Limited of ` 10 each
Reliance Europe Limited of Sterling Pound 1 each
Jamnagar Utilities & Power Private Limited Class 'A' shares of ` 1 each
[` 40,40,000; (Previous Year ` 40,40,000)]
Vadodara Enviro Channel Limited of ` 10 each [ ` 1,43,020; (Previous Year ` Nil)]
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
2,53,420
27,394
4,53,240
45,342
1,18,360
12,795
1,18,360
11,836
40,189
-
40,189
57,178
-
57,178
68,60,064
16
16
68,60,064
16
16
64,29,20,000
64
64,29,20,000
64
62,63,125
11,08,500
52,00,000
14,302
1
4
-
-
69
62,63,125
11,08,500
52,00,000
-
1
4
-
-
69
261
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Particulars
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
Particulars
In Equity Shares of Joint Venture Companies
Unquoted, fully paid up
Jio Payments Bank Limited of ` 10 each
Pipeline Management Services Private Limited (Formerly Rutvi Project
Managers Private Limited) of ` 10 each [` 50,00,000; (Previous Year
` 50,00,000)]
India Gas Solution Private Limited of ` 10 each
Football Sports Development Limited of ` 10 each
IMG Reliance Limited of ` 10 each
In Equity Shares of Subsidiary Companies
Unquoted, fully paid up
Indiavidual Learning Private Limited of ` 1 each
Reliance BP Mobility Limited (Formerly Jio Information Solutions Limited) of
`10 each [` 9,00,000; (Previous Year ` 5,00,000)]
Radisys Corporation of USD 10 each
Reliance Content Distribution Limited of ` 10 each
[` 5,00,000; (Previous Year ` 5,00,000)]
Reliance Energy Generation & 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.Limited of SGD 1 each
Reliance Global Energy Services Limited of GBP 1 each
Reliance Industrial Investments and Holdings Limited of `10 each
(Refer Note 2.4)
Reliance Industries (Middle East) DMCC of AED 1000 each
Reliance Jio Infocomm Limited of `10 each (Refer Note 2.3)
Reliance O2C Limited (Formerly Reliance Navi Mumbai Infra Limited) of ` 10
each [` 5,00,000; (Previous Year ` 5,00,000)]
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
Reliance Industries Uruguay Petroquímica S.A. of Uruguayan Peso 1 each
Saavn Media Private Limited of ` 1 each
Reliance Commercial Dealer Limited of ` 10 each
Indiawin Sports Private Limited of ` 10 each
Reliance Projects & Property Management Services Limited
(Formerly Reliance Digital Platform & Project Services Limited) of ` 10 each
(Refer Note 2.4)
Reliance 4IR Realty Development Limited of ` 10 each (Refer Note 2.4)
Reliance Strategic Business Ventures Limited of ` 10 each (Refer Note 2.4)
Jio Platforms Limited of ` 10 each (Refer Note 2.3)
Jio Limited of ` 10 each [` 1,00,000; (Previous Year ` Nil)]
16,24,00,000
5,00,000
1,50,00,000
10,80,141
5,33,60,074
45,78,904
90,000
75,00,000
50,000
12,50,000
15,56,72,113
37,30,00,000
15,00,000
30,00,000
14,75,04,400
42,450
-
50,000
5,66,70,00,000
1,44,52,18,117
20,20,200
26,91,150
31,39,733
5,84,926
1,50,00,000
26,50,000
10,00,00,000
10,00,00,000
10,00,00,000
4,96,13,00,000
10,000
162
1
15
134
201
513
327
-
539
-
1
992
373
65
54
33
46
-
-
5,667
1,445
2
2,351
1
6,826
25
3
32
17,614
10,035
4,961
-
51,392
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
162
1
-
-
-
163
327
-
539
-
1
1,010
373
65
54
148
42,450
44,74,74,90,000
50,000
46
44,200
-
5,66,70,00,000
1,23,17,53,117
20,20,200
26,91,150
31,39,733
4,66,019
-
-
-
5,667
1,232
2
2,351
1
5,429
-
-
-
-
-
-
-
-
-
-
-
61,445
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
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 Investments & Holdings Limited of ` 10 each (Refer Note 2.4)
9% 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
9% Non-Cumulative Optionally Convertible Preference Shares of Indiawin
Sports Private Limited of ` 10 each
12% Cumulative Compulsorily Convertible Preference Shares of Indiavidual
Learning Private Limited of ` 1 each
0.01% Redeemable Preference Shares of ` 10 each of Reliance BP Mobility
Limited (Formerly Jio Information Solutions Limited)
6% Non-Cumulative Optionally Convertible Preference Shares of Reliance
Strategic Business Ventures Limited of ` 10 each
0.01% Non-Cumulative Optionally Convertible Preference Shares of Jio
Platforms Limited of ` 10 each (Refer Note 2.3)
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 ` 4.125 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 ` 5000 each
Zero Coupon Unsecured Optionally Fully Convertible Debentures of
Reliance Industrial Investments and Holdings Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully Convertible Debentures of
Reliance Ambit Trade Private Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully Convertible Debentures of
Reliance Prolific Commercial Private Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully Convertible Debentures of
Reliance Comtrade Private Limited of ` 10 each [` 20,00,000; (Previous
Year ` 20,00,000)]
Zero Coupon Unsecured Optionally Fully Convertible Debentures of
Reliance Eminent Trading & Commercial Private Limited of ` 10 each
Zero Coupon Unsecured Optionally Fully Convertible Debentures of
Reliance Content Distribution Limited of ` 10 each
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
6,14,905
1,108
6,14,905
1,108
4,02,800
113
4,02,800
113
5,46,24,604
15,841
3,62,02,475
10,500
36,76,50,000
368
36,76,50,000
368
4,72,41,72,954
11,628
4,37,11,94,954
35,629
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
5,34,00,60,000
5,340
27,49,96,000
27,69,198
30,00,00,000
27,75,000
275
277
300
288
1,77,02,51,62,850
1,77,025
-
-
-
-
-
-
-
-
-
-
2,13,962
54,457
80,00,00,000
1,650
80,00,00,000
1,650
1,650
1,650
8,83,143
442
8,83,143
-
3,11,10,000
3,75,70,000
2,00,000
2,12,00,000
-
31
38
-
21
86,20,00,000
3,11,10,000
3,75,70,000
2,00,000
2,12,00,000
442
862
31
38
-
21
1,61,28,71,200
1,613
1,55,08,00,000
1,551
2,145
2,945
262
263
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Particulars
In Corpus of Trust
Unquoted
Investment in Corpus of Independent Media Trust
Total of Investments measured at Cost
INVESTMENTS MEASURED AT FAIR VALUE THROUGH OTHER
COMPREHENSIVE INCOME (FVTOCI)
In Equity Shares of Other Companies
Unquoted, fully paid up
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)]
Ahmedabad Mega Clean Association of ` 10 each [` 1,00,000; (Previous
Year ` 1,00,000)]
VAKT Holdings Limited of US$0.001 each
Quoted, fully paid up
Balaji Telefilms Limited of ` 2 each
Eros International PLC of GBP 0.30 each
In Preference Shares of Other Companies
Unquoted, fully paid up
10% Optionally Convertible Preference Shares of Jio Digital Fibre Private
Limited of ` 10 each
10% Optionally Convertible Preference Shares of Reliance Jio Infratel
Private Limited of ` 10 each
10% Cumulative Redeemable Preference Shares of Jio Digital Fibre Private
Limited of ` 10 each
Other Investments
In Membership Share in LLP, Unquoted
Labs 02 Limited Partnership
In Membership Interest in LLC, Unquoted
BreakThrough Energy Ventures LLC
In Debentures or Bonds – Quoted fully paid up*
In Fixed Maturity Plan – Quoted fully paid up^
In Government Securities – Quoted*
Total of Investments measured at Fair Value Through Other
Comprehensive Income
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
Particulars
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
3,366
3,366
2,73,113
-
-
-
39
39
95
39
134
1,00,00,000
19,99,990
10,000
39,894
2,52,00,000
31,11,088
3,366
3,366
1,24,111
-
-
-
35
35
207
197
404
1,00,00,000
19,99,990
10,000
36,267
2,52,00,000
31,11,088
INVESTMENTS MEASURED AT FAIR VALUE THROUGH PROFIT AND
LOSS (FVTPL)
In Equity Shares of Other Companies – Quoted, fully paid up
In Equity Shares of Other Companies – Unquoted, fully paid up
In Preference Shares of Other Companies – Unquoted, fully paid up
Total of Investments measured at Fair Value Through Profit and Loss
Total Investments – Non-Current
Aggregate amount of Quoted Investments
Market Value of Quoted Investments
Aggregate amount of Unquoted Investments
Aggregate provision for impairment in value of Investments
* Includes ` 11,448 crore (Previous Year ` 327 crore) given as collateral security. (Refer Note 20).
^ Refer Note 36 C.
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
77,70,11,98,375
77,701
77,70,11,98,375
77,701
Total Investment – Non-Current
250
355
250
855
4,19,073
27,272
27,475
3,91,801
17
-
250
-
250
2,72,043
12,729
12,937
2,59,314
17
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
40,189
2,73,113
1,04,916
855
4,19,073
57,178
1,24,111
90,504
250
2,72,043
5,00,00,000
12,50,000
50
1
77,752
16
103
1,539
11,070
14,263
26,991
1,04,916
-
-
-
-
77,701
5
50
2,161
10,148
-
12,364
90,504
2.2 The list of subsidiaries, joint ventures and associates along with proportion of ownership interest held and country of
incorporation are disclosed in Note 36 and Note 37 of Consolidated Financial Statement.
2.3 The Company has incorporated ‘Jio Platforms Limited’ (JPL) a wholly-owned subsidiary for digital platform initiatives and has
invested ` 4,961 crore in Equity Shares and ` 1,77,025 crore in Optionally Convertible Preference Shares (OCPS) of JPL. Further,
the Company transferred its investment in Reliance Jio Infocomm Limited (equity shares – ` 44,200 crore and OCPS - ` 20,250
crore) to JPL at cost.
2.4 During the year, the Board of Directors of Reliance Industrial Investments and Holdings Limited (RIIHL) at their meeting held on
15th July, 2019 approved a Composite Scheme of Arrangement (herein after referred to as “Scheme”) between RIIHL , Reliance
Digital Platform & Project Services Limited, Reliance 4IR Realty Development Limited, Reliance Strategic Business Ventures
Limited and other Companies and their respective shareholders and creditors, inter-alia for demerger of its various business
undertaking to respective entities. The Scheme has been duly approved by the Ahmedabad bench of the Hon’ble National
Company Tribunal (NCLT) vide its Order dated 5th September, 2019.
Pursuant to above scheme of arrangement, the Company has reallocated its investment and loans in the respective entities.
264
265
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
702
42,720
926
44,348
822
30,152
832
31,806
In Preference Shares:
Sr.
No.
1
2
Name of the Company
Reliance Payment Solutions Limited
C Square Info-solutions Private Limited
No. of Shares
1,00,00,000
13,20,000
Note 2
Investment by Reliance Projects & Property Management Services Limited (Formerly Reliance Digital Platform & Project
Services Limited) in Subsidiaries
In Equity Shares:
3. LOANS – NON-CURRENT (UNSECURED AND CONSIDERED GOOD)
Deposits with Related Parties (Refer Note 32 (IV))
Loans and advances to Related parties (Refer Note 32 (IV))
Other Loans and Advances*
Total
* Other Loans and advances includes primarily fair valuation of interest free deposits.
A. LOANS AND ADVANCES IN THE NATURE OF LOANS GIVEN TO SUBSIDIARIES#:
Sr.
No.
Name of the Company
As at
31st March, 2020
Maximum Balance
during the year
As at
31st March, 2019
(` in crore)
Maximum Balance
during the year
1
2
3
4
5
6
7
1
2
3
4
5
6
7
Loans – Non-Current^
Reliance Industrial Investments and Holdings
Limited*
Reliance Corporate IT Park Limited
Reliance Jio Infocomm Limited
Reliance Gas Pipelines Limited
Reliance 4IR Realty Development Limited*
Reliance Projects & Property Management Services
Limited (Formerly Reliance Digital Platform &
Project Services Limited) *
Reliance Strategic Business Ventures Limited *
Loans – Current
Reliance Ventures Limited
Reliance Strategic Investments Limited
Reliance Retail Limited
Reliance Sibur Elastomers Private Limited
Reliance Energy Generation and Distribution
Limited
Reliance Corporate IT Park Limited
Jio Platforms Limited
Total
10,497
13,761
-
670
1,648
10,793
5,351
42,720
-
2,420
-
110
-
990
11,000
14,520
57,240
21,367
16,908
9,194
670
5,362
15,743
5,549
2,312
2,767
2,500
110
1,630
990
12,903
14,941
5,867
9,194
150
-
-
-
30,152
2,312
2,322
-
-
242
-
-
4,876
35,028
All the above loans and advances have been given for business purposes.
# Loans and Advances does not include interest receivable of ` 3 crore (Previous Year ` Nil).
^ Loans and Advances fall under the category of ‘Loans – Non-Current‘ and are re-payable after more than 1 year.
* Refer Note 2.4.
Note 1
Investment by Reliance Industrial Investments and Holdings Limited in Subsidiaries
In Equity Shares:
Sr.
No.
Name of the Company
Reliance Payment Solutions Limited
Kanhatech Solutions Private Limited
Reliance Retail Insurance Broking Limited
Reliance Retail Finance Limited
Jio Infrastructure Management Services Limited
Reliance Petroleum Retail Limited
C Square Info-solutions Private Limited
Grab a Grub Services Private Limited
Surajya Service (EGOV) Private Limited
1
2
3
4
5
6
7
8
9
10 Shopsense Retail Technologies Private Limited
266
14,941
5,867
28,750
150
-
-
-
2,312
3,619
-
-
242
-
-
No. of Shares
11,50,00,000
7,50,00,000
40,00,000
6,81,20,000
10,000
10,000
14,54,750
53,050
2,174
1,49,45,575
Sr.
No.
1
Name of the Company
Reliance SMSL Limited
Note 3
Investment by Reliance 4IR Realty Development Limited in Subsidiaries
In Equity Shares:
Sr.
No.
Name of the Company
Reliance Corporate IT Park Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Prolific Traders Private Limited
Reliance Progressive Traders Private Limited
Reliance Universal Traders Private Limited
Reliance Prolific Commercial Private Limited
Reliance Comtrade Private Limited
Reliance Ambit Trade Private Limited
Reliance Vantage Retail Limited
1
2
3
4
5
6
7
8
9
10 Surela Investment and Trading Private Limited
11
The Indian Film Combine Private Limited
12 Dronagiri Bokadvira North Infra Limited
13 Dronagiri Bokadvira East Infra Limited
14 Dronagiri Bokadvira West Infra Limited
15 Dronagiri Bokadvira South Infra Limited
16 Dronagiri Dongri North Infra Limited
17 Dronagiri Dongri East Infra Limited
18 Dronagiri Dongri West Infra Limited
19 Dronagiri Dongri South Infra Limited
20 Dronagiri Funde North Infra Limited
21 Dronagiri Funde East Infra Limited
22 Dronagiri Funde West Infra Limited
23 Dronagiri Funde South Infra Limited
24 Dronagiri Navghar North Infra Limited
25 Dronagiri Navghar East Infra Limited
26 Dronagiri Navghar West Infra Limited
27 Dronagiri Navghar South Infra Limited
28 Dronagiri Navghar North First Infra Limited
29 Dronagiri Navghar South First Infra Limited
30 Dronagiri Navghar North Second Infra Limited
31 Dronagiri Navghar South Second Infra Limited
32 Dronagiri Pagote North Infra Limited
33 Dronagiri Pagote East Infra Limited
34 Dronagiri Pagote West Infra Limited
35 Dronagiri Pagote South Infra Limited
36 Dronagiri Pagote North First Infra Limited
37 Dronagiri Pagote South First Infra Limited
38 Dronagiri Pagote North Second Infra Limited
39 Dronagiri Panje North Infra Limited
No. of Shares
50,000
No. of Shares
2,37,99,94,480
1,00,00,000
1,00,00,000
1,00,00,000
1,00,00,000
10,00,000
10,00,000
10,00,000
5,60,000
5,000
5,73,751
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
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
267
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Sr.
No.
Name of the Company
40 Dronagiri Panje East Infra Limited
41 Dronagiri Panje West Infra Limited
42 Dronagiri Panje South Infra Limited
43 Kalamboli North Infra Limited
44 Kalamboli East Infra Limited
45 Kalamboli West Infra Limited
46 Kalamboli South Infra Limited
47 Kalamboli North First Infra Limited
48 Kalamboli South First Infra Limited
49 Kalamboli North Second Infra Limited
50 Kalamboli North Third Infra Limited
51 Ulwe North Infra Limited
52 Ulwe East Infra Limited
53 Ulwe West Infra Limited
54 Ulwe South Infra Limited
55 Ulwe Waterfront North Infra Limited
56 Ulwe Waterfront East Infra Limited
57 Ulwe Waterfront West Infra Limited
58 Ulwe Waterfront South Infra Limited
In Preference Shares:
Sr.
No.
1
2
3
4
Name of the Company
Reliance Corporate IT Park Limited
Reliance Eminent Trading & Commercial Private Limited
Reliance Progressive Traders Private Limited
Reliance Universal Traders Private Limited
Note 4
Investment by Reliance Strategic Business Ventures Limited in Subsidiaries
In Equity Shares:
Sr.
No.
1
2
3
4
Name of the Company
Reliance Exploration & Production DMCC
Reliance Innovative Building Solutions Private Limited
Reliance Jio Messaging Services Private Limited
Nowfloats Technologies Private Limited
In Preference Shares:
Sr.
No.
Name of the Company
1
Reliance Exploration & Production DMCC
Note 5
Investment by Reliance Strategic Investments Limited in Subsidiaries
In Equity Shares:
Sr.
No.
1
Name of the Company
DEN Network Limited
Note 6
Investment by Reliance Gas Pipelines Limited in Subsidiaries
In Equity Shares:
Sr.
No.
1
Name of the Company
Reliance Ethane Pipeline Limited
268
No. of Shares
Note 7
Investment by Jio Platforms Limited in Subsidiaries
In Equity 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
50,000
50,000
No. of Shares
1,12,09,43,246
17,37,000
2,03,06,000
7,20,00,000
No. of Shares
1,76,200
6,46,93,950
9,73,28,000
1,80,735
No. of Shares
14,90,700
No. of Shares
14,87,160
No. of Shares
10,000
Sr.
No.
Name of the Company
Reliance Jio Infocomm Limited
Surajya Service (EGOV) Private Limited
Jio Haptik Technologies Limited
Reverie Language Technologies Private Limited
New Emerging World Journalism Private Limited
Tesseract Imaging Private Limited
SankhyaSutra Labs Private Limited
Radisys India Private Limited
Jio Estonia OU
1
2
3
4
5
6
7
8
9
10 Asteria Aerospace Private Limited
In Preference Shares:
Sr.
No.
1
2
3
Name of the Company
SankhyaSutra Labs Private Limited
Reliance Jio Infocomm Limited
Tesseract Imaging Private Limited
4. OTHER NON-CURRENT ASSETS (UNSECURED AND CONSIDERED GOOD)
Capital Advances
Advance Income Tax (Net of Provision)
Others Non-Current Assets with Related Parties (Refer Note 32(II))
Others *
Total
* Includes ` 295 crore (Previous Year ` 295 crore) deposited in Gas pool account (Refer Note 33.4 (b)).
As at
31st March, 2020
2,087
2,045
-
326
4,458
No. of Shares
45,00,00,00,000
14,551
4,35,00,000
14,366
30,001
9,000
50,957
2,10,000
50,000
6,02,337
No. of Shares
9,54,198
1,09,12,50,00,000
3,175
(` in crore)
As at
31st March, 2019
967
1,827
1,179
314
4,287
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 and exceptional item.
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
1,827
(7,200)
2,164
5,254
2,045
1,605
(9,440)
236
9,426
1,827
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
5.
INVENTORIES
Raw Materials (Including Material In Transit)
Work-in-Progress*
Finished Goods
Stock-in-Trade
Stores and Spares
Total
* Includes Land, Development Cost and on transfer on completion of Projects of ` 5,253 crore (Previous Year ` 620 crore).
15,040
7,748
10,873
45
5,096
38,802
19,634
6,450
13,162
84
4,814
44,144
269
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Particulars
6. INVESTMENTS – CURRENT
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 Government Securities – Quoted *
In Debentures or Bonds Quoted, fully paid up *
In Treasury Bills – Quoted
In Mutual Fund – Unquoted ^
In Certificate of Deposits – Quoted
In Debentures of Other Companies – Unquoted, fully paid up
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 36 C.
* Includes ` 11,690 crore (Previous Year ` 13,384 crore) given as collateral security. (Refer Note 20).
6.1 CATEGORY-WISE INVESTMENT – CURRENT
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
8. CASH AND CASH EQUIVALENTS
Cash on Hand
Balances with Banks*
Cash and Cash Equivalents as per Balance Sheet
Cash and Cash Equivalent as per Cash Flows Statement
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
-
2,720
38,216
40,936
14,783
3,442
10,869
-
-
-
29,094
70,030
31,814
31,814
38,216
3,358
8
23,693
27,059
12,894
7,384
-
452
373
11,478
32,581
59,640
24,017
24,017
35,623
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
40,936
29,094
70,030
27,059
32,581
59,640
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
7,483
7,483
12,110
12,110
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
17
8,426
8,443
8,443
19
3,749
3,768
3,768
* Includes Unclaimed Dividend of ` 220 crore (Previous Year ` 235 crore),Fixed Deposits of ` 249 crore (Previous Year ` 303 crore) with maturity of more than
12 months and Fixed Deposits of ` 2,549 crore ( Previous Year ` 2,608 crore) given as collateral securities. These deposits can be withdrawn by the Company
at any point of time without prior notice or penalty on the principal.
270
9.
LOANS – CURRENT (UNSECURED AND CONSIDERED GOOD)
Loans and Advances to Related Parties (Refer Note 32 (IV))#
Other Loans
Total
# Refer Note 3.A for details of Loans.
10. OTHER FINANCIAL ASSETS – CURRENT
Deposits to Related Parties (Refer Note 32 (IV))
Other Deposits
Others*
Total
* Mainly includes fair valuation of derivatives.
11. TAXATION
INCOME TAX RECOGNISED IN STATEMENT OF PROFIT AND LOSS
Current tax
Deferred tax
Total Income Tax expenses recognised in the current year
The income tax expenses for the year can be reconciled to the accounting profit as follows:
Profit Before Tax and Exceptional Items
Applicable Tax Rate
Computed Tax Expense
TAX EFFECT OF:
Exempted income
Expenses disallowed
Additional allowances net of MAT Credit
Current Tax Provision (A)
Incremental Deferred tax Liability on account of Property, Plant and Equipment and Intangible
Assets
Incremental Deferred tax Liability/(Asset) on account of Financial Assets and Other items
Deferred Tax Provision (B)
Tax Expenses Recognised in Statement of Profit and Loss ( A+B )
Effective Tax Rate
Tax on Exceptional Item
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 32 (II))
Others#
Total
# Includes primarily prepaid expenses and claims receivable.
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
14,523
505
15,028
4,876
-
4,876
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
-
606
15,494
16,100
10,245
3,718
3,164
17,127
Year ended
31st March, 2020
(` in crore)
Year ended
31st March, 2019
7,200
2,213
9,413
9,440
2,764
12,204
Year ended
31st March, 2020
44,561
34.944%
15,571
(3,100)
3,632
(8,903)
7,200
3,271
(1,058)
2,213
9,413
21.12%
(899)
Year ended
31st March, 2019
47,367
34.944%
16,552
(3,107)
4,006
(8,011)
9,440
3,425
(661)
2,764
12,204
25.76%
-
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
7,685
134
2,892
10,711
9,543
85
1,571
11,199
271
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview 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
6,33,92,67,510 Equity Shares of ` 10 each fully paid up
(6,33,86,93,823)
Total
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
14,000
1,000
15,000
6,339
6,339
14,000
1,000
15,000
6,339
6,339
13.1
13.2
13.3
Redemption Reserve.
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)
-
(17,18,82,820)
41,31,68,826 Shares held by Associates. (Refer Note)
Shares held by Subsidiaries. (Refer Note)
(3,44,000)
Figures in bracket represents Previous Year's figure.
Note: Petroleum Trust holds 24.09 crore shares and 5 wholly-owned subsidiaries were holding 17.19 crore shares of the Company, both aggregating to
41.28 crore shares. Pursuant to a scheme of arrangement sanctioned by the National Company Law Tribunal, Ahmedabad, the 5 wholly-owned subsidiaries
of the Company have been amalgamated with Reliance Services and Holdings Limited (“RSHL”), a company controlled by Petroleum Trust w.e.f. September
13, 2019. Pursuant to amendment to the trust deed, Petroleum Trust has ceased to be under the control of the Company. However, as before, the beneficial
interest in all these shares continues to be with Reliance Industrial Investments and Holdings Limited, a wholly-owned subsidiary of the Company. Both
Petroleum Trust and RSHL are Associates as per Accounting Standard.
13.4 THE DETAILS OF SHAREHOLDERS HOLDING MORE THAN 5% SHARES:
Name of the Shareholder
Srichakra Commercials LLP
Devarshi Commercials LLP
Karuna Commercials LLP
Tattvam Enterprises LLP
Life Insurance Corporation of India
As at 31st March, 2020
As at 31st March, 2019
No. of Shares
% held
No. of Shares
% held
68,88,95,274
50,81,66,996
50,81,66,996
50,81,66,996
37,18,05,415
10.87
8.02
8.02
8.02
5.87
68,88,95,274
71,08,00,410
50,81,66,996
43,14,31,608
43,19,75,079
10.87
11.21
8.02
6.81
6.81
13.5 THE RECONCILIATION OF THE NUMBER OF SHARES OUTSTANDING IS SET OUT BELOW:
Particulars
Equity Shares at the beginning of the year
Add: Shares issued on exercise of employee stock options
Equity Shares at the end of the year
As at
31st March, 2020
As at
31st March, 2019
No. of Shares
No. of Shares
6,33,86,93,823
5,73,687
6,33,92,67,510
6,33,46,51,022
40,42,801
6,33,86,93,823
13.6 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. The Company has not granted any options under ESOS-2017.
13.7 RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO SHARES:
The Company has only one class of equity shares having face value of ` 10 each and the holder of the equity share is
entitled to one vote per share. The dividend proposed by Board of Directors is subject to approval of the shareholders in
the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the
holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of
equity shares held.
14. OTHER EQUITY
SHARE APPLICATION MONEY PENDING ALLOTMENT
As per last Balance Sheet
Add: Issue of Share/Application money received
CAPITAL RESERVE
As per last Balance Sheet
SECURITIES PREMIUM
As per last Balance Sheet
Add: On Employee Stock Options
DEBENTURES REDEMPTION RESERVE
As per last Balance Sheet
Add: Transferred from Retained Earning
SHARE BASED PAYMENTS RESERVE
As per last Balance Sheet
Less: On Employee Stock Options
SPECIAL ECONOMIC ZONE REINVESTMENT RESERVE
As per last Balance Sheet
Add: Transferred from Retained Earnings
GENERAL RESERVE
As per last Balance Sheet
Add: Transferred from Retained Earning
RETAINED EARNINGS
As per last Balance Sheet
Add: Profit for the year
Less: Appropriations
Transferred to General Reserve
Dividend on Equity Shares [Dividend per Share ` 6.5 (Previous Year ` 6)]
Tax on Dividend
Transferred to Special Economic Zone Reinvestment Reserve
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, 2020
(` in crore)
As at
31st March, 2019
2
(1)
46,306
23
9,375
-
9
(5)
-
5,500
1
291
15
(13)
46,174
132
2
291
46,329
46,306
5,251
4,124
9,375
9,375
12
(3)
-
-
9
-
4
5,500
2,55,000
-
2,25,000
30,000
2,55,000
2,55,000
26,808
30,903
57,711
-
(3,852)
(732)
(5,500)
-
61,192
(7,074)
30,051
35,163
65,214
(30,000)
(3,554)
(728)
-
(4,124)
47,627
26,808
1,518
59,674
54,118
4,18,245
61,192
3,98,983
14.1 Share Application Money Pending Allotment represents application money received on account of Employees Stock
Option Scheme.
272
273
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
As at 31st March, 2020
As at 31st March, 2019
Non-Current
Current
Non-Current
Current
Rate of Interest
(` in crore)
b) Unsecured:
15. BORROWINGS
SECURED – AT AMORTISED COST
Non-Convertible Debentures
UNSECURED – AT AMORTISED COST
Non-Convertible Debentures
Bonds
Term Loans – from Banks
Term loans – from Others
13,382
13,382
29,679
24,530
1,09,498
1,662
1,65,369
498
498
11,990
620
18,315
895
31,820
500
500
37,000
22,939
57,659
-
1,17,598
-
-
-
555
3,970
-
4,525
Total
1,78,751
32,318
1,18,098
4,525
15.1 SECURED NON-CONVERTIBLE DEBENTURES REFERRED ABOVE TO THE EXTENT OF:
a)
b)
` 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.
` 13,386 crore (Previous Year ` Nil) are secured by hypothecation of the movable properties, both present and future,
including movable plant and machinery, spares, tools and accessories, furniture, fixtures and vehicles of Reliance Jio
Infocomm Limited, subsidiary of the Company, save and except the telecom licenses, spectrum, brand name, goodwill and
any intellectual property rights and such of the assets that are procured through financing from Cisco Systems Capital India
Private Limited.
15.2 MATURITY PROFILE AND RATE OF INTEREST OF NON-CONVERTIBLE DEBENTURES ARE AS SET OUT BELOW:
a) Secured:
Rate of Interest
7.97%
8.00%
8.25%
8.32%
8.70%
8.75%
Total
Non-Current*
(` in crore)
Current*
2025-26
2024-25
2023-24
2022-23
2021-22
Total
2020-21
-
-
-
-
1,000
1,000
-
-
-
1,000
-
-
-
1,000
-
1,000
3,886
1,000
-
-
-
4,886
-
-
-
-
-
1,000
-
-
-
2,000
3,500
-
5,500
1,000
3,886
3,000
2,000
3,500
-
13,386
-
-
-
-
-
500
500
* Includes ` 6 crore (Non-Current ` 4 crore and Current ` 2 crore) as prepaid finance charges.
274
(` in crore)
Current*
2020-21
2,500
2,500
2,500
-
2,500
-
-
-
-
2,000
-
-
-
12,000
Current *
6.78%
6.80%
6.95%
7.00%
7.07%
7.17%
8.30%
8.65%
8.70%
8.95%
9.00%
9.05%
9.25%
Total
2028-29
2024-25
2022-23
2021-22
Non-Current*
-
-
-
-
-
-
-
2,415
1,000
2,655
-
3,143
-
9,213
-
-
-
-
-
-
-
-
-
-
1,000
-
2,500
3,500
-
-
-
5,000
-
5,000
-
-
-
-
-
-
-
10,000
-
-
-
-
-
-
7,000
-
-
-
-
-
-
7,000
Total
-
-
-
5,000
-
5,000
7,000
2,415
1,000
2,655
1,000
3,143
2,500
29,713
*Includes ` 44 crore (Non-Current ` 34 crore and Current ` 10 crore) as prepaid finance charges.
15.3 MATURITY PROFILE AND RATE OF INTEREST OF BONDS ARE AS SET OUT BELOW:
Non-Current*
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
Total
2020-21
-
-
-
-
-
-
-
-
-
-
-
94
-
94
-
-
-
-
-
-
-
-
-
-
-
-
73
73
-
-
-
-
-
-
5,675
-
-
-
-
-
-
5,675
-
-
-
-
-
-
-
1,513
-
-
-
-
-
1,513
-
-
-
-
6,053
-
-
-
38
-
-
-
-
6,091
-
-
-
-
-
-
-
-
-
257
167
-
-
424
147
144
163
170
-
-
-
-
-
-
-
-
-
624
147
144
163
170
-
7,567
-
-
-
-
-
-
-
8,191
147
144
163
170
-
-
-
-
-
-
-
-
-
624
147
144
163
170
-
-
-
-
-
-
-
-
-
624
147
144
164
171
-
-
-
-
-
-
-
-
-
626
735
720
816
851
6,053
7,567
5,675
1,513
38
257
167
94
73
24,559
147
145
163
170
-
-
-
-
-
-
-
-
-
625
* Includes ` 34 crore (Non-Current ` 29 crore and Current ` 5 crore) as prepaid finance charges.
15.4 MATURITY PROFILE OF UNSECURED TERM LOANS ARE AS SET OUT BELOW:
Term Loans – from Banks*
Term Loans – from Others
Non-Current
Above 5 years
1-5 years
29,082
-
29,082
81,862
1,662
83,524
Total
1,10,944
1,662
1,12,606
* Includes ` 1,751 crore (Non-Current ` 1,446 crore and Current ` 305 crore) as prepaid finance charges.
15.5 The Company has satisfied all the covenants prescribed in terms of borrowings.
15.6 Refer Note 40.1.
(` in crore)
Current
1 year
18,620
895
19,515
275
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
16. OTHER FINANCIAL LIABILITIES – NON-CURRENT
Lease Liabilities
Total
17. PROVISIONS – NON-CURRENT
Provision for decommissioning of Assets#
Total
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
2,924
2,924
-
-
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
1,410
1,410
2,483
2,483
# The movement in the provision is towards (i) Utilisation for Tapti facilities, (ii) changes in the exchange rates (iii) Unwinding of discount and (iv) impact of
transfer of provision consequent to transfer of Panna Mukta to GOI nominee. Provision for Decommissioning of Assets is for Tapti, KGD6 and CBM Block.
18. 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
COMPONENT OF DEFERRED TAX LIABILITIES/(ASSET)
Deferred tax liabilities / (asset) in relation to:
Property, Plant and Equipment and Intangible Asset
Financial Assets and Others
Loan and Advances
Provisions
19. OTHER NON-CURRENT LIABILITIES
Advance from Related Parties (Refer Note 32 (II))
Total
As at
31st March, 2020
47,317
2,213
1,026
50,556
(` in crore)
As at
31st March, 2019
27,926
2,764
16,627
47,317
(` in crore)
Charge/(credit) to
As at
31st March, 2019
Statement of
Profit and Loss
Other
Comprehensive
Income
As at
31st March, 2020
31,301
16,970
(34)
(920)
47,317
3,271
(1,592)
6
528
2,213
-
1,026
-
-
1,026
34,572
16,404
(28)
(392)
50,556
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
504
504
504
504
20. 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 *
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
4,720
18,847
23,567
-
-
27,709
27,709
8,603
6,128
14,731
5,482
1,000
17,884
24,366
Total
51,276
39,097
*Maximum amount outstanding at any time during the year was ` 29,054 crore ( Previous Year ` 27,143 crore).
20.1 Working Capital Loans from Banks of ` 4,720 crore (Previous Year ` 8,603 crore) are secured by Government Securities (Refer
Note 2 and 6) and hypothecation of stock of raw materials, work-in-progress, finished goods, stores and spares (not relating
to plant and machinery), book debts, outstanding monies, receivables, claims, bills, materials in transit, etc. save and except
receivables of Oil and Gas Segment.
20.2 Working Capital Loans from Others of ` 18,847 crore (Previous Year ` 6,128 crore) are secured by Government Securities and
Bonds (Refer Note 2 and 6).
20.3 Refer note 36 B (iv) for maturity profile.
20.4 The Company has satisfied all the covenants prescribed in terms of borrowings.
21. TRADE PAYABLES DUE TO
Micro and Small Enterprise
Other than Micro and Small Enterprise
Total
21.1 There are no overdues to Micro, Small and Medium Enterprises as at March 31, 2020.
22. OTHER FINANCIAL LIABILITIES – CURRENT
Current maturities of Borrowings - Non-Current
Interest accrued but not due on Borrowings
Unclaimed Dividends#
Lease Liabilities – Current
Advance from Related Parties (Refer Note 32 (II))
Other Payables *
Total
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
116
70,932
71,048
229
88,012
88,241
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
32,318
2,814
220
102
7,969
77,195
1,20,618
4,525
1,613
235
-
-
21,302
27,675
276
# Does not include any amount due and outstanding, to be credited to Investor Education and Protection Fund except ` 2 crore (Previous Year ` 2 crore) which
is held in abeyance due to legal cases pending.
* Includes Creditors for Capital Expenditure, Security Deposit and Financial Liability at Fair Value.
277
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
23. OTHER CURRENT LIABILITIES
Contract Liabilities
Other Payables ^
Total
^ Mainly includes statutory dues.
24. PROVISIONS - CURRENT
Provisions for Employee Benefits (Refer Note 28.1)**
Other Provisions#
Total
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
63,882
2,287
66,169
40,882
5,343
46,225
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
334
738
1,072
277
506
783
** The provision for employee benefit includes annual leave and vested long service leave entitlement accrued.
# The Company had recognised liability for excise duty payable on clearance of goods lying in stock as on 31st March, 2019 of ` 269 crore as per the estimated
pattern of dispatches. During the year, ` 269 crore was utilised for clearance of goods. Provision recognised under this class for the year is ` 387 crore which
is outstanding as on 31st March, 2020. 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 ` 236 crore as at 31st March, 2019. During the year, further provision of ` 1,632 crore was made and sum
of ` 1,673 crore were reversed on fulfilment of export obligation. Closing balance on this account as at 31st March, 2020 is ` 195 crore.
25. REVENUE FROM OPERATIONS
DISAGGREGATED REVENUE
Refining
Petrochemicals
Oil & Gas
Others
Value of Sales
Income from Financial Services
Income from Other Services
Value of Services
Total ^^
2019-20
2,34,687
1,12,726
1,093
522
3,49,028
616
1,236
1,852
3,50,880
(` in crore)
2018-19
2,46,036
1,35,516
1,992
571
3,84,115
597
789
1,386
3,85,501
^^ 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.
26.1 OTHER COMPREHENSIVE INCOME – ITEMS THAT WILL NOT BE RECLASSIFIED TO
PROFIT AND LOSS
Remeasurement of Defined Benefit Plan
Equity Instruments through OCI
Total
26.2 OTHER COMPREHENSIVE INCOME – ITEMS THAT WILL BE RECLASSIFIED TO
PROFIT AND LOSS
Government Securities
Debenture or Bonds
Debt Income Fund
Fixed Maturity Plan
Commodity Hedge
Cash Flow Hedge
Total
27. 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: Exceptional Items (Refer Note 30.3)
2019-20
(` in crore)
2018-19
Total
* Excludes on transfer on completion of Projects.
26. OTHER INCOME
INTEREST
Bank deposits
Debt instruments
Other Financial Assets measured at Amortised Cost
Others (Previous Year ` 8,38,573)
DIVIDEND INCOME
OTHER NON-OPERATING INCOME
GAIN ON FINANCIAL ASSETS
Realised Gain
Unrealised Gain/(Loss)
Total
146
5,093
278
-
1,666
586
127
10,502
67
203
1,886
(170)
10,899
350
1,576
1,716
14,541
5,517
449
604
2,252
8,822
Above includes income from assets measured at Cost/Amortised Cost ` 7,435 crore (Previous Year ` 2,323 crore), income from assets measured at Fair Value
Through Profit and Loss ` 1,514 crore (Previous Year ` 1,703 crore) and income from assets measured at Fair Value Through Other Comprehensive Income
` 4,016 crore (Previous Year ` 4,192 crore).
278
28. EMPLOYEE BENEFITS EXPENSE
Salaries and Wages
Contribution to Provident Fund and Other Funds
Staff Welfare Expenses
Total
2019-20
(128)
(264)
(392)
2019-20
152
(107)
254
166
(1,491)
(5,895)
(6,921)
2019-20
10,918
3,115
14,033
13,246
6,450
19,696
448
5,138
14,110
77
2019-20
5,390
260
417
6,067
(` in crore)
2018-19
(20)
76,912
76,892
(` in crore)
2018-19
-
(93)
(1,002)
186
70
12
(827)
(` in crore)
2018-19
13,246
6,450
19,696
10,932
5,601
16,533
131
-
16,402
(3,294)
(` in crore)
2018-19
5,109
255
470
5,834
279
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview 28.1 AS PER INDIAN ACCOUNTING STANDARD 19 “EMPLOYEE BENEFITS”, THE DISCLOSURES AS DEFINED ARE GIVEN BELOW:
IV) Expenses recognised during the year
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
2019-20
136
12
58
(` in crore)
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
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
* Includes benefits of ₹ 73 crore (Previous Year ₹ Nil) by the Company
II) Reconciliation of opening and closing balances of fair value of Plan Assets
(` in crore)
Gratuity (Funded)
2019-20
2018-19
820
-
45
66
117
(78)
970
766
38
43
62
(20)
(69)
820
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
Insurance Policies
Others (including bank balances)
VI) Actuarial Assumptions
(` in crore)
Mortality Table (IALM)
Fair value of Plan Assets at beginning of the year
Add: On Acquisition/ Transfer
Return on Plan Assets
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)]
Gratuity (Funded)
2019-20
2018-19
820
-
55
100
(5)
970
766
38
22
63
(69)
820
(` in crore)
Gratuity (Funded)
As at 31st
March, 2020
As at 31st
March, 2019
970
970
-
820
820
-
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)
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 2019-20.
(` in crore)
Gratuity (Funded)
2019-20
2018-19
45
66
(66)
45
117
11
128
43
62
(62)
43
(20)
40
20
As at 31st March, 2020
As at 31st March, 2019
` in crore
% Invested
` in crore
% Invested
9
961
-
970
0.92
99.08
-
100.00
13
806
1
820
1.59
98.29
0.12
100.00
Gratuity (Funded)
2019-20
2006-08
(Ultimate)
6.84%
6.84%
4.00% p.a. for the
next 2 years,
6.00% p.a.
thereafter
2%
2018-19
2006-08
(Ultimate)
8.10%
8.10%
6%
2%
280
281
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
VIII) Sensitivity Analysis
c) Fair Value on the grant date
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 rate of discounting (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, 2020
As at 31st March, 2019
Decrease
Increase
Decrease
Increase
26
26
2
27
27
2
22
23
4
23
24
3
These plans typically expose the Company to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk
and Salary Risk.
Investment
Risk
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 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.
Longevity
Risk
the return on the plan’s debt investments.
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants will
increase the plan’s liability.
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.
28.2 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 of Options Outstanding
As at 31st
March, 2020
As at 31st
March, 2019
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
1,63,136
2008-09
6,180
1,69,316
Sub-Total
ii) Details of Employee Stock Options granted from 1st April, 2015 to 31st March, 2020
2015-16
2016-17
Sub-Total
2016-17 to 2019-20
2017-18 to 2020-21
2015-16
2015-16 & 2016-17
3,81,825
12,480
3,94,305
7,482
96,452
1,03,934
-
60,224
60,224
321.00
322.30
154.90
156.20 - 164.90
443.70
548.00
127.30-173.20
149.80-204.50
The fair value at grant date is determined using “Black Scholes Model” which takes into account the exercise price, term of the
option, share price at grant date and expected price volatility of the underlying shares, expected dividend yield and the risk free
interest rate for the term of the option.
The model inputs for options granted during the year ended March 31, 2017 included as mentioned below. Further no new stock
options were granted during FY 2019-20;
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)
g) Risk free interest rate: 7 %
Expected dividend yield: 1.07%
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
As at 31st March, 2020
As at 31st March, 2019
Particulars
Balance at the beginning of the year
Exercised during the year
Expired / Lapsed during the year
Balance at the end of the year
Number of
share options
4,98,239
(2,67,439)
(1,260)
2,29,540
Weighted average
exercise price
366.82
355.21
321.00
380.59
7,86,812
(2,86,573)
(2,000)
4,98,239
Number of
share options
Weighted average
exercise price
Weighted average remaining contractual life of the share option outstanding at the end of year is 468 days (Previous Year 414 days).
29. FINANCE COSTS
Interest Expenses*
Interest on Lease Liabilities
Applicable loss on foreign currency transactions and translation
Total
* Net of Interest Capitalised of ` 4,054 crore (Previous Year ` 2,622 crore).
2019-20
9,767
246
2,092
12,105
380.08
403.58
321.00
366.82
(` in crore)
2018-19
8,770
-
981
9,751
Total
2,29,540
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.
b) Compensation expenses arising on account of the Share Based Payments
Expenses arising from equity – settled share-based payment transactions
Year ended
31st March, 2020
0.28
(` in crore)
Year ended
31st March, 2019
0.64
282
283
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
30. 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
2019-20
5,210
13,759
685
122
1,258
178
189
23
21,424
6,581
856
601
8,038
601
1,702
79
939
942
512
159
31
196
1,107
6,268
2,383
33,347
(` in crore)
2018-19
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
# Excise Duty shown under manufacturing expenditure represents the aggregate of Excise Duty borne by the Company and difference between Excise Duty on
opening and closing stock of finished goods.
30.1 PAYMENT TO AUDITORS AS:
Particulars
(a) Statutory Audit Fees
(b) Tax Audit Fees
(c) Certification and Consultation Fees
(d) Cost Audit Fees
Total
2019-20
21
1
8
1
31
(` in crore)
2018-19
18
1
2
1
22
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.
30.2 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 ` 875 crore (Previous Year ` 811 crore).
(b) Expenditure related to Corporate Social Responsibility is ` 909 crore (Previous Year ` 849 crore).
Particulars
Rural Transformation
Health
Education
Sports for Development
Disaster Response
Arts, Culture, Heritage and Urban Renewal
Total
2019-20
58
35
254
42
519
1
909
(` in crore)
2018-19
133
113
527
49
26
1
849
(c)
Out of note (b) above, ` 121 crore (Previous Year ` 289 crore) contributed to Reliance Foundation, ` 37 crore (Previous Year ` 41
crore) to Reliance Foundation Youth Sports and ` 229 crore (Previous Year ` 476 crore) to Reliance Foundation Institution of
Education and Research which are related parties.
30.3 EXCEPTIONAL ITEMS
(a) COVID-19 has significant impact on business operations of the Company. Further, there is substantial drop in oil prices
accompanied with unprecedented demand destruction. The Company based on its assessment has determined the impact of
such exceptional circumstances on its financial statements and the same has been disclosed separately as ‘Exceptional Items’ of
` 4,245 crore, net of taxes of ` 899 crore in the Statement of Profit and Loss for the year ended March 31, 2020. (also read with
Note C (I) of Critical Accounting Judgements and Key sources of Estimation uncertainty above)
31. EARNINGS PER SHARE (EPS)
FACE VALUE PER EQUITY SHARE (`)
BASIC EARNINGS PER SHARE (`) – BEFORE EXCEPTIONAL ITEM
BASIC EARNINGS PER SHARE (`) – AFTER EXCEPTIONAL ITEM
Net Profit after Tax as per Statement of Profit and Loss attributable to Equity Shareholders
(` in crore) – Before Exceptional Item
Net Profit after Tax as per Statement of Profit and Loss attributable to Equity Shareholders
(` in crore) – After Exceptional Item
Weighted Average number of Equity Shares used as denominator for calculating Basic EPS
DILUTED EARNINGS PER SHARE (`) – BEFORE EXCEPTIONAL ITEM
DILUTED EARNINGS PER SHARE (`) – AFTER EXCEPTIONAL ITEM
Net Profit after Tax as per Statement of Profit and Loss attributable to Equity Shareholders
(` in crore) – Before Exceptional Item
Net Profit after Tax as per Statement of Profit and Loss attributable to Equity Shareholders
(` in crore) – After Exceptional Item
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.
2019-20
2018-19
10
55.45
48.75
35,148
30,903
10
55.48
55.48
35,163
35,163
6,33,91,12,980
55.44
48.75
6,33,76,24,192
55.47
55.47
35,148
30,903
35,163
35,163
6,33,93,96,408
6,33,90,37,425
6,33,91,12,980
2,83,428
6,33,93,96,408
6,33,76,24,192
14,13,233
6,33,90,37,425
284
285
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
32. 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
46
47
Name of the Related Party
Relationship
ABC Cable Network Private Limited
Adhunik Cable Network Limited (Formerly Adhunik Cable Network Private Limited)
Adventure Marketing Private Limited#
AETN18 Media Private Limited#
Affinity Names Inc.
Affinity USA Inc.^
Ambika DEN Cable Network Private Limited
Amogh Broad Band Services Private Limited
Angel Cable Network Private Limited
Antique Communications Private Limited
Asteria Aerospace Private Limited^
Augment Cable Network Private Limited
Aurora Algea Inc.
Bali Den Cable Network Limited (Formerly 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
C-Square Info-Solutions Private Limited^
Den A.F. Communication Private Limited
Den Aman Entertainment Private Limited
DEN Ambey Cable Networks Private Limited
Den Ashu Cable Limited (Formerly Den Ashu Cable Private Limited)
DEN BCN Suncity Network Limited (Formerly 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 Limited (Formerly DEN Crystal Vision Network Private Limited)
Den Digital Cable Network Private Limited
Den Discovery Digital Networks 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
DEN Harsh Mann Cable Network Limited (Formerly DEN Harsh Mann Cable Network
Private Limited)
Subsidiary
Sr.
No.
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
Name of the Related Party
Relationship
Den Jai Ambey Vision Cable Private Limited
Den Kashi Cable Network Limited (Formerly Den Kashi Cable Network Private Limited)
Den Kattakada Telecasting And Cable Services Limited (Formerly Den Kattakada
Telecasting And Cable Services Private Limited)
DEN Krishna Cable TV Network Limited (Formerly DEN Krishna Cable TV Network
Private Limited)
Den Maa Sharda Vision Cable Networks Limited (Formerly 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 Limited (Formerly Den MCN Cable Network Private Limited)
Den Mod Max Cable Network Private Limited
DENMTN 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 Limited (Formerly DEN Pawan Cable Network Private Limited)
Den Pradeep Cable Network Private Limited
DEN Prayag Cable Networks Limited (Formerly DEN Prayag Cable Networks Private Limited)
Den Premium Multilink Cable Network Private Limited
Den Prince Network Limited (Formerly Den Prince Network Private Limited)
Den Radiant Satellite Cable Network Private Limited
Den Rajkot City Communication Private Limited
Den Sahyog Cable Network Limited (Formerly Den Sahyog Cable Network Private Limited)
Den Sariga Communications Private Limited
Den Satellite Cable TV Network Private Limited
Den Saya Channel Network Limited (Formerly 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 Limited (Formerly Den Varun Cable Network Private Limited)
Den VM Magic Entertainment Limited (Formerly Den VM Magic Entertainment
Private Limited)
Den-Manoranjan Satellite Private Limited
Desire Cable Network Limited (Formerly 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
Subsidiary
# Control by Independent Media Trust of which RIL is the sole beneficiary.
^ Relationships established during the year.
286
# Control by Independent Media Trust of which RIL is the sole beneficiary.
^ Relationships established during the year.
@ Ceased to be related party.
287
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Name of the Related Party
Dronagiri Navghar South First Infra Limited
Sr.
No.
Dronagiri Funde West Infra Limited
96
Dronagiri Navghar East Infra Limited
97
Dronagiri Navghar North First Infra Limited
98
Dronagiri Navghar North Infra Limited
99
100 Dronagiri Navghar North Second Infra Limited
101
102 Dronagiri Navghar South Infra Limited
103 Dronagiri Navghar South Second Infra Limited
104 Dronagiri Navghar West Infra Limited
105 Dronagiri Pagote East Infra Limited
106 Dronagiri Pagote North First Infra Limited
107
Dronagiri Pagote North Infra Limited
108 Dronagiri Pagote North Second Infra Limited
109 Dronagiri Pagote South First Infra Limited
Dronagiri Pagote South Infra Limited
110
Dronagiri Pagote West Infra Limited
111
Dronagiri Panje East Infra Limited
112
Dronagiri Panje North Infra Limited
113
Dronagiri Panje South Infra Limited
114
Dronagiri Panje West Infra Limited
115
eDreams Edusoft Private Limited^
116
e-Eighteen.com Limited#
117
Ekta Entertainment Network Private Limited
118
Elite Cable Network Private Limited
119
Eminent Cable Network Private Limited
120
Ethane Crystal LLC@
121
Ethane Emerald LLC@
122
Ethane Opal LLC@
123
Ethane Pearl LLC@
124
Ethane Sapphire LLC@
125
Ethane Topaz LLC@
126
Fab Den Network Limited (Formerly Fab Den Network Private Limited)
127
Fortune (Baroda) Network Private Limited
128
Fun Cable Network Private Limited
129
Futuristic Media and Entertainment Private Limited ( Formerly Den Futuristic Cable
130
Networks Private Limited)
Galaxy Den Media & Entertainment Private Limited
131
132 Gemini Cable Network Private Limited
Genesis Colors Limited
133
Genesis La Mode Private Limited
134
135 Genesis Luxury Fashion Private Limited
136 GLB Body Care Private Limited
137
GLF Lifestyle Brands Private Limited
138 Glimpse Communications Private Limited
139 GML India Fashion Private Limited
140 Grab A Grub Services Private Limited^
141
142 Hamleys (Franchising) Limited^
Hamleys Asia Limited^
143
144
Hamleys Global Holdings Limited^
145 Hamleys of London Limited^
146 Hamleys Toys (Ireland) Limited^
Greycells18 Media Limited#
# Control by Independent Media Trust of which RIL is the sole beneficiary.
^ Relationships established during the year.
@ Ceased to be related party.
288
Relationship
Subsidiary
Relationship
Subsidiary
Name of the Related Party
Hathway Digital Private Limited
Hathway Krishna Cable Private Limited
Hathway Bhawani Cabletel and Datacom Limited
Sr.
No.
147
148 Hathway Broadband Private Limited
149 Hathway Cable and Datacom Limited
150 Hathway Cnet Private Limited
151
152 Hathway Enjoy Cable Network Private Limited
153 Hathway Gwalior Cable & Datacom Private Limited
154 Hathway Internet Satellite Private Limited
155 Hathway JMD Farukhabad Cable Network Private Limited
156 Hathway Kokan Crystal Cable Network Private Limited
157
158 Hathway Mantra Cable & Datacom Private Limited
159 Hathway Media Vision Private Limited
160 Hathway Mysore Cable Network Private Limited
161
Hathway Nashik Cable Network Private Limited
162 Hathway New Concept Cable & Datacom Private Limited
163 Hathway Software Developers Private Limited
164 Hathway Space Vision Cabletel Private Limited
165 Hathway United Cables Private Limited
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
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 Estonia OU
Jio Futuristic Digital Holdings Private Limited$
Jio Haptik Technologies Limited (Formerly Reliance Jio Digital Services Limited)
Jio Infrastructure Management Services Limited
Jio Internet Distribution Holdings Private Limited$
Jio Limited^
Jio Platforms 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
# Control by Independent Media Trust of which RIL is the sole beneficiary.
^ Relationships established during the year.
$ 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.
289
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Name of the Related Party
Moneycontrol.Dot Com India Limited#
Liberty Media Vision Private Limited
Libra Cable Network Limited (Formerly Libra Cable Network Private Limited)
Sr.
No.
198
199
200 Luvley Limited^
201 M Entertainments Private Limited
202 Mahadev Den Cable Network Private Limited
203 Mahavir Den Entertainment Private Limited
204 Maitri Cable Network Private Limited
205 Mansion Cable Network Private Limited
206 Marble Cable Network Private Limited
207 Media18 Distribution Services Limited^#
208 Meerut Cable Network Private Limited
209 Mindex 1 Limited
210 Model Economic Township Limited
211
212 Mountain Cable Network Limited (Formerly Mountain Cable Network Private Limited)
213 Multi Channel Cable Network Private Limited
214 Multi Star Cable Network Limited (Formerly Multi Star Cable Network Private Limited)
215 Multitrack Cable Network Private Limited
216 Nectar Entertainment Private Limited
Network18 Media & Investments Limited#
217
218 New Emerging World of Journalism Private Limited
219 NowFloats Technologies Private Limited^
220 Radiant Satellite (India) Private Limited
221
Radisys B.V.
222 Radisys Canada Inc.
223 Radisys Cayman Limited
224 Radisys Convedia (Ireland) Limited
225 Radisys Corporation
226 Radisys GmbH
227 Radisys India Private Limited
228 Radisys International LLC
229 Radisys International Singapore PTE. Limited
230 Radisys Poland sp. z o.o
231
232 Radisys Systems Equipment Trading (Shanghai) Co. Limited
233 Radisys Technologies (Shenzhen) Co., Limited
234 Radisys UK Limited
235 RB Holdings Private Limited#
236 RB Media Holdings Private Limited#
RB Mediasoft Private Limited#
237
238 Recron (Malaysia) Sdn Bhd
239 Reliance 4IR Realty Development Limited^
240 Reliance Ambit Trade Private Limited
241
242 Reliance BP Mobility Limited (Formerly Jio Information Solutions Limited)
243 Reliance Brands Holdings UK Limited ^
244 Reliance Brands Limited
245 Reliance Chemicals Limited@
246 Reliance Clothing India Private Limited
247
Reliance Commercial Dealers Limited
248 Reliance Comtrade Private Limited
249 Reliance Content Distribution Limited
Reliance Aromatics and Petrochemicals Limited@
Radisys Spain S.L.U.
# Control by Independent Media Trust of which RIL is the sole beneficiary.
^ Relationships established during the year.
@ Ceased to be related party.
290
Relationship
Subsidiary
Name of the Related Party
Reliance Gas Pipelines Limited
Reliance Eagleford Upstream GP LLC
Sr.
No.
250 Reliance Corporate IT Park Limited
251
252 Reliance Eagleford Upstream Holding LP
253 Reliance Eagleford Upstream LLC
254 Reliance Eminent Trading & Commercial Private Limited
255 Reliance Energy and Project Development Limited@
256 Reliance Energy Generation and Distribution Limited
257 Reliance Ethane Holding Pte. Limited
258 Reliance Ethane Pipeline Limited^
259 Reliance Exploration & Production DMCC
260 Reliance GAS Lifestyle India Private Limited
261
262 Reliance Global Energy Services (Singapore) Pte. Limited
263 Reliance Global Energy Services Limited
264 Reliance Holding USA, Inc.
265 Reliance Industrial Investments and Holdings Limited
266 Reliance Industries (Middle East) DMCC
267 Reliance Industries Uruguay Petroquímica S.A.
268 Reliance Innovative Building Solutions Private Limited
269 Reliance Jio Global Resources LLC
270 Reliance Jio Infocomm Limited
Reliance Jio Infocomm Pte. Limited
271
272 Reliance Jio Infocomm UK Limited
273
274
275 Reliance Jio Messaging Services Limited
276 Reliance Lifestyle Holdings Limited@
277
278 Reliance Marcellus LLC
279 Reliance O2C Limited (Formerly Reliance Navi Mumbai Infra Limited)
280 Reliance Payment Solutions Limited
281
282 Reliance Petroleum Retail Limited^
283 Reliance Polyolefins Limited@
284 Reliance Progressive Traders Private Limited
285 Reliance Projects & Property Management Services Limited (Formerly Reliance Digital
Reliance Jio Infocomm USA Inc.
Reliance Jio Media Limited
Reliance Petro Marketing Limited
Reliance Marcellus II LLC
Relationship
Subsidiary
Reliance Retail Ventures Limited
Platform & Project Services Limited)^
286 Reliance Prolific Commercial Private Limited
287 Reliance Prolific Traders Private Limited
288 Reliance Retail Finance Limited
289 Reliance Retail Insurance Broking Limited
290 Reliance Retail Limited
291
292 Reliance Services and Holdings Limited (Formerly Naroda Power Private Limited)@
293 Reliance Sibur Elastomers Private Limited
294 Reliance SMSL Limited
295 Reliance Strategic Business Ventures Limited^
296 Reliance Strategic Investments Limited
297 Reliance Universal Enterprises Limited@
298 Reliance Universal Traders Private Limited
299 Reliance Vantage Retail Limited
300 Reliance Ventures Limited
301
Reliance World Trade Private Limited@
^ Relationships established during the year.
@ Ceased to be related party.
291
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Relationship
Subsidiary
Name of the Related Party
Sr.
No.
302 Reliance-GrandOptical Private Limited
303 Reverie Language Technologies Private Limited^
304 Rhea Retail Private Limited@
305 RIL USA, Inc.
306 Roptonal Limited#
307 Rose Entertainment Private Limited
308 RP Chemicals (Malaysia) Sdn Bhd
309 RRB Mediasoft Private Limited#
310
311
312
313
314
315
316
317
318
319
320 Silverline Television Network Limited (Formerly Silverline Television Network
Saavn Inc.
Saavn LLC
Saavn Media Private Limited
SankhyaSutra Labs Private Limited^
Sanmati DEN Cable TV Network Private Limited
Sanmati Entertainment Private Limited
Scrumpalicious Limited^
Shopsense Retail Technologies Private Limited^
Shree Sidhivinayak Cable Network Private Limited
Shri Kannan Departmental Store Private Limited^
Private Limited)
Sree Gokulam Starnet Communication Private Limited
Surajya Services Private Limited^
Surela Investment and Trading Limited
The Indian Film Combine Private Limited
Trident Entertainment Private Limited
321
322 Srishti Den Networks Limited (Formerly Srishti Den Networks Private Limited)
323
324
325 Tesseract Imaging Private Limited^
326 The Hamleys Group Limited^
327
328
329 TV18 Broadcast Limited#
330 Ulwe East Infra Limited
Ulwe North Infra Limited
331
332 Ulwe South Infra Limited
333 Ulwe Waterfront East Infra Limited
334 Ulwe Waterfront North Infra Limited
335 Ulwe Waterfront South Infra Limited
336 Ulwe Waterfront West Infra Limited
337 Ulwe West Infra Limited
338 United Cable Network (Digital) Limited (Formerly United Cable Network (Digital)
Name of the Related Party
Football Sports Development Limited^
IMG Reliance Limited^
Sr.
No.
353
354
355 India Gas Solutions Private Limited^
356 Jio Payments Bank Limited
357
Pipeline Management Services Private Limited (Formerly Rutvi Project Managers
Private Limited)
358 Gujarat Chemical Port Limited (Formerly Gujarat Chemical Port Terminal
Company Limited)
Reliance Europe Limited
Shri Srikanth Venkatachari
Shri K. Sethuraman
Smt. Savithri Parekh
Smt. Nita M. Ambani
359 Indian Vaccines Corporation Limited
360 Jamnagar Utilities & Power Private Limited
361
362 Reliance Industrial Infrastructure Limited
Sikka Ports & Terminals Limited
363
364 Vadodara Enviro Channel Limited
365 Shri Mukesh D. Ambani
366 Shri Nikhil R. Meswani
367
Shri Hital R. Meswani
368 Shri P. M. S. Prasad
369 Shri Pawan Kumar Kapil
370 Shri Alok Agarwal
371
372
373
374
375 Dhirubhai Ambani Foundation
376 Hirachand Govardhandas Ambani Public Charitable Trust
377 HNH Trust and HNH Research Society
378
379
380 Reliance Foundation Institution of Education and Research
381
382 IPCL Employees Provident Fund Trust
383 Reliance Industries Limited Vadodara Units Employees Supernnuation Fund
384 RIL Vadodara Unit Employees Gratuity Fund
385 Reliance Employees Provident Fund Bombay
386 Reliance Industries Limited Staff Superannuation Scheme
Reliance Industries Limited Employees Gratuity Fund
387
IPCL Employees Gratuity Fund - Baulpur Unit
388
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Reliance Foundation Youth Sports
Private Limited)
Viacom18 Media (UK) Limited#
339 UTN Cable Communications Private Limited
340 VBS Digital Distribution Network Private Limited
341
342 Viacom 18 Media Private Limited#
343 Viacom18 US Inc.#
344 Victor Cable TV Network Private Limited
345 Vision India Network Private Limited
346 Watermark Infratech Private Limited#
347 Web18 Digital Services Limited^#
348 Win Cable and Datacom Private Limited
349 Digital Media Distribution Trust
350 Independent Media Trust
351 Network 18 Media Trust
352 Petroleum Trust@
# Control by Independent Media Trust of which RIL is the sole beneficiary.
^ Relationships established during the year.
@ Ceased to be related party.
292
Company/Subsidiary is a beneficiary
^ Relationships established during the year.
Relationship
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
293
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Subsidiaries/
Beneficiary
Associates/
Joint
Venture
Key Managerial
Personnel/
Relative
(` in crore)
Others
Total
Sr.
No.
Nature of Transactions (Excluding Reimbursements)
Balances as at 31st March, 2020
Subsidiaries/
Beneficiary
Associates/
Joint
Venture
Key Managerial
Personnel/
Relative
(` in crore)
Others
Total
(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 (Refer Note 2.3 and 2.4)
Sale / Redemption of Investments (Refer Note 2.3 and 2.4)
Net Loans and Advances, Deposits Given / (Returned)
(Refer Note 2.4)
Net Advance Received
Transfer of Liabilities (Refer Note 40.1)
Revenue from Operations
Other Income
Sale of Property, Plant and Equipment
10 Purchases Goods / Services
11
Electric Power, Fuel and Water
12 Hire Charges
13
Employee Benefit Expense
14
Payment to Key Managerial Personnel/Relative
15
Sales and Distribution Expenses
16
Rent
17
Professional Fees
18 General Expenses#
19 Donations
20 Sale of Business (Through Slump Sale)
Note: Figures in italic represents Previous Year’s amounts.
# Does not include sitting fees of Non- Executive Directors of ₹ 2 crore.
1,493
1,600
2,41,035
33,180
93,037
65,097
11,891
26,389
(7,969)
-
1,04,365
-
26,783
31,688
3,659
2,157
-
22
1,399
21,623
-
-
539
400
1,413
915
-
-
1
2
-
-
428
258
571
531
-
-
-
77
155
213
350
70
-
3,768
(41)
(25)
-
-
-
-
153
333
32
246
-
1
1,578
1,447
4,898
5,140
119
869
-
-
-
-
2,184
2,066
11
10
30
33
15
13
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
110
101
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3
3
-
-
-
-
-
-
-
-
566
506
-
-
-
-
-
-
-
-
-
-
462
851
-
-
1,648
1,813
2,41,385
33,250
93,037
68,865
11,850
26,364
(7,969)
1,04,365
-
26,936
32,021
3,694
2,406
-
23
2,977
23,070
4,898
5,140
658
1,269
1,979
1,421
110
101
2,185
2,068
11
10
458
291
586
544
462
851
-
77
1
2
3
4
5
6
7
8
9
Investments$
Trade Receivables*
Loans and Advances
Other Non-Current Assets
Deposits
Trade and Other Payables*
Other Non-Current Liabilities
Other Current Assets
Financial Guarantees
10 Performance Guarantees
11 Other Financial Liabilities - Current
2,72,515
1,23,863
461
1,855
57,243
35,028
-
1,179
160
10,485
280
2,007
504
504
-
85
27,711
84,508
1,986
1,801
7,969
-
599
248
24
30
-
-
-
-
542
583
1,128
815
-
-
-
-
1,447
1,419
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
134
-
-
-
-
-
-
-
2,73,114
1,24,111
485
1,885
57,243
35,028
-
1,179
702
11,068
1,408
2,822
504
504
134
85
29,158
85,927
1,986
1,801
7,969
-
Figures in italic represents Previous Year’s amounts.
$ Includes Investment in Saavn Media Private Limited of ` 654 crore from existing shareholders.
*Includes reimbursements.
(III) DISCLOSURE IN RESPECT OF MAJOR RELATED PARTY TRANSACTIONS DURING THE YEAR:
Particulars
Relationship
2019-20
2018-19
(` in crore)
1
2
Purchase of Property Plant & Equipment and Intangible Assets
Subsidiary
Affinity Names Inc.
Gujarat Chemical Port Limited (Formerly Gujarat Chemical Port Terminal Company Limited) Associate
Associate
Jamnagar Utilities & Power Private Limited
Reliance Corporate IT Park Limited
Subsidiary
Reliance Projects & Property Management Services Limited (Formerly Reliance Digital
Platform & Project Services Limited)
Reliance Industrial Infrastructure Limited
Reliance Jio Infocomm Limited
Reliance Retail Limited
Reliance Sibur Elastomers Private Limited
Sikka Ports & Terminals Limited
Purchase / Subscription of Investments
Football Sports Development Limited ^
IMG Reliance Limited ^
India Gas Solutions Private Limited ^
Indiavidual Learning Private Limited
Indiawin Sports Private Limited
Reliance BP Mobility Limited (Formerly Jio Information Solutions Limited)
Associate
Subsidiary
Subsidiary
Subsidiary
Associate
Joint Venture
Joint Venture
Joint Venture
Subsidiary
Subsidiary
Subsidiary
Subsidiary
-
-
2
581
267
7
634
7
4
146
134
201
15
277
278
300
2
1
15
1,584
-
14
-
13
1
183
-
-
-
327
-
-
295
294
^ Relationships established during the year.
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Particulars
Relationship
2019-20
2018-19
(` in crore)
Joint Venture
Joint Venture
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
3
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Jio Payments Bank Limited
Jio Platforms Limited ^ (Refer Note 2.3)
Radysis Corporation
Reliance 4IR Realty Development Limited ^ (Refer Note 2.4)
Reliance Commercial Dealers Limited
Reliance Content Distribution Limited
Reliance Projects & Property Management Services Limited ^ (Formerly Reliance Digital
Platform & Project Services Limited) (Refer Note 2.4)
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.
Reliance Jio Infocomm Limited
Reliance Retail Ventures Limited
Reliance Sibur Elastomers Private Limited
Reliance Strategic Business Ventures Limited ^ (Refer Note 2.4)
Pipeline Management Services Private Limited(Formerly Rutvi Project Managers
Private Limited)
Saavn Media Private Limited
Sale / Redemption of Investments
East West Pipeline Limited
Reliance Content Distribution Limited
Reliance Ethane Holding Pte Limited
Reliance Industrial Investments and Holdings Limited (Refer Note 2.4)
Reliance Jio Infocomm Limited (Refer Note 2.3)
Reliance Jio Messaging Services Limited
Net Loans and Advances, Deposits Given / (Returned)
Gujarat Chemical Port Limited (Formerly Gujarat Chemical Port Terminal company Limited) Associate
Subsidiary
Jio Platforms Limited ^
Subsidiary
Reliance 4IR Realty Development Limited ^ (Refer Note 2.4)
Subsidiary
Reliance Commercial Dealers Limited
Subsidiary
Reliance Corporate IT Park Limited
Reliance Projects & Property Management Services Limited ^ (Formerly Reliance Digital
Platform & Project Services Limited) (Refer Note 2.4)
Reliance Energy Generation and Distribution Limited
Reliance Gas Pipelines Limited
Reliance Industrial Investments and Holdings Limited (Refer Note 2.4)
Reliance Industries (Middle East) DMCC
Reliance Industries Uruguay Petroquímica S.A.
Reliance Jio Infocomm Limited
Reliance Sibur Elastomers Private Limited
Reliance Strategic Business Ventures Limited ^ (Refer Note 2.4)
Reliance Strategic Investments Limited
Reliance Ventures Limited
5 Net Advance Received
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
4
-
1,81,986
-
17,613
25
89
32
5,341
-
3,565
-
-
20,250
-
213
10,323
-
743
-
27
18
28,542
64,450
-
(41)
11,002
1,648
(80)
(1,360)
10,793
(242)
520
(4,444)
-
-
(9,194)
110
5,351
99
(2,312)
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)
9,194
-
-
584
1,173
Jio Platforms Limited ^
^ Relationships established during the year.
Subsidiary
(7,969)
-
296
Particulars
6 Transfer of Liabilities
Relationship
2019-20
2018-19
(` in crore)
7
Subsidiary
Joint Venture
Reliance Jio Infocomm Limited (Refer Note 40.1)
Revenue from Operations
Associate
East West Pipeline Limited
E-Eighteen.Com Limited
Subsidiary
Gujarat Chemical Port Limited (Formerly Gujarat Chemical Port Terminal Company Limited) Associate
Associate
Jamnagar Utilities & Power Private Limited
Jio Payments Bank Limited
Joint Venture
Pipeline Management Services Private Limited ^ (Formerly Rutvi Project Managers Private
Limited)
Recron (Malaysia) Sdn. Bhd.
Reliance Commercial Dealers Limited
Reliance Corporate IT Park Limited
Reliance Projects & Property Management Services Limited ^ (Formerly Reliance Digital
Platform & Project Services Limited)
Reliance Energy Generation and Distribution Limited
Reliance Gas Pipelines Limited
Reliance Global Energy Services (Singapore) Pte. Limited
Reliance Industrial Investments and Holdings Limited
Reliance Industries (Middle East) DMCC
Reliance Jio Infocomm Limited
Reliance Petro Marketing Limited
Reliance Retail Limited
Reliance Sibur Elastomers Private Limited
Reliance Strategic Investments Limited
RIL USA, Inc.
Sikka Ports & Terminals Limited
TV18 Broadcast Limited
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
8 Other Income
Associate
East West Pipeline Limited
Subsidiary
E-Eighteen.Com Limited
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
Subsidiary
Gujarat Chemical Port Limited (Formerly Gujarat Chemical Port Terminal Company Limited) Associate
India Gas Solutions Private Limited ^
Jamnagar Utilities & Power Private Limited
Jamnaben Hirachand Ambani Foundation
Jio Platforms Limited ^
Network18 Media & Investments Limited
Recron (Malaysia) Sdn. Bhd.
Reliance 4IR Realty Development Limited ^
Reliance Brands Limited
Reliance Commercial Dealers Limited
Joint Venture
Associate
Other
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
^ Relationships established during the year.
@ Ceased to be related party.
1,04,365
-
1
3
126
1
4
1,540
16
291
567
-
353
8,478
584
-
39
13,981
38
379
63
450
19
1
-
3
-
-
-
-
-
-
1
10
1
2
3
49
1
6
124
3
1
-
33
-
1
278
-
-
1,614
12
165
-
1
1,412
10,984
1,192
1,743
166
13,098
34
214
244
809
19
-
229
-
1
1
1
1
1
1
1
-
-
-
3
-
1
7
-
3
-
297
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Particulars
Relationship
2019-20
2018-19
Particulars
(` in crore)
Relationship
2019-20
2018-19
(` in crore)
Subsidiary
Subsidiary
Reliance Corporate IT Park Limited
Reliance Projects & Property Management Services Limited^ (Formerly Reliance Digital
Platform & Project Services Limited)
Reliance Energy Generation and Distribution Limited
Reliance Ethane Holding Pte Limited
Reliance Europe Limited
Reliance Exploration & Production DMCC
Reliance Gas Pipelines Limited
Reliance Global Energy Services (Singapore) Pte. Limited
Reliance Holding USA, Inc.
Reliance Industrial Infrastructure Limited
Reliance Industrial Investments and Holdings Limited
Reliance Jio Infocomm Limited
Reliance Lifestyle Holdings Limited@
Reliance Retail Limited
Reliance Sibur Elastomers Private Limited
Reliance Strategic Business Ventures Limited ^
Reliance Ventures Limited
RIL USA, Inc.
Sikka Ports & Terminals Limited
TV18 Broadcast Limited
Sale of Property, Plant and Equipment
Gujarat Chemical Port Limited (Formerly Gujarat Chemical Port Terminal Company Limited) Associate
Subsidiary
Reliance Sibur Elastomers Private Limited
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Subsidiary
9
10 Purchases Goods / Services
Gujarat Chemical Port Limited (Formerly Gujarat Chemical Port Terminal Company Limited) Associate
Subsidiary
IndiaCast Media Distribution Private Limited
Associate
Jamnagar Utilities & Power Private Limited
Subsidiary
Reliance Gas Pipelines Limited
Subsidiary
Reliance Global Energy Services (Singapore) Pte. Limited
Associate
Reliance Industrial Infrastructure Limited
Subsidiary
Reliance Industries (Middle East) DMCC
Subsidiary
Reliance Petro Marketing Limited
Subsidiary
Reliance Retail Limited
Subsidiary
Reliance Sibur Elastomers Private Limited
Associate
Sikka Ports & Terminals Limited
Electric Power, Fuel and Water
Jamnagar Utilities & Power Private Limited
Associate
11
823
486
30
297
16
3
26
4
236
2
974
368
1
8
4
196
9
2
1
4
-
-
162
-
-
91
92
21
1,195
2
17
1
1,395
473
-
-
-
15
-
7
2
215
2
1,102
246
2
-
6
-
85
5
-
-
1
22
160
11
6
1,453
2
21
20,134
1
21
-
1,259
4,898
5,140
18 General Expenses
12 Hire Charges
East West Pipeline Limited
Reliance Gas Pipelines Limited
Reliance Industrial Infrastructure Limited
Reliance Sibur Elastomers Private Limited
Sikka Ports & Terminals Limited
13 Employee Benefits Expense
HNH Trust and HNH Research Society
IPCL employees Provident fund Trust
Reliance Employees Provident Fund Bombay
^ Relationships established during the year.
@ Ceased to be related party.
* Also include employee contribution.
298
Associate
Subsidiary
Associate
Subsidiary
Associate
Other
Other*
Other*
-
539
22
-
97
10
124
320
759
399
23
1
87
8
109
314
Reliance Commercial Dealers Limited
Reliance Global Energy Services (Singapore) Pte. Limited
Reliance Jio Infocomm Limited
Reliance Retail Limited
Sikka Ports & Terminals Limited
Vadodara Enviro Channel Limited
^ Relationships established during the year.
* Also include employee contribution.
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 Projects & Property Management Services Limited ^ (Formerly Reliance Digital
Platform & Project Services Limited)
Reliance Retail Limited
Other*
Other*
Other*
Subsidiary
Subsidiary
Subsidiary
14 Payment to Key Managerial Personnel / Relative
Shri Mukesh D. Ambani
Shri Nikhil R. Meswani
Shri Hital R. Meswani
Shri PMS Prasad
Shri Pawan Kumar Kapil
Shri Alok Agarwal
Shri Srikanth Venkatachari
Shri K. Sethuraman
Smt. Savithri Parekh
Smt. Nita M. Ambani
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
Relative of KMP
15 Sales and Distribution Expenses
Gujarat Chemical Port Limited (Formerly Gujarat Chemical Port Terminal Company Limited) Associate
IMG Reliance Limited ^
Reliance Payment Solutions Limited
Reliance Retail Limited
Sikka Ports & Terminals Limited
Joint Venture
Subsidiary
Subsidiary
Associate
16 Rent
Reliance Industrial Infrastructure Limited
17 Professional Fees
Reliance Corporate IT Park Limited
Reliance Projects & Property Management Services Limited ^ (Formerly Reliance Digital
Platform & Project Services Limited)
Reliance Europe Limited
Reliance Gas Pipelines Limited
Reliance Industrial Infrastructure Limited
Reliance Industries (Middle East) DMCC
Reliance Industries Uruguay Petroquímica S.A.
Reliance Jio Infocomm Limited
Reliance Payment Solutions Limited
Associate
Subsidiary
Subsidiary
Associate
Subsidiary
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
1
100
11
947
428
38
15
24
24
11
4
12
14
3
2
1
65
1
1
-
2,118
11
298
124
23
-
7
1
2
-
3
480
1
19
71
12
3
1
63
11
887
-
28
15
21
21
10
4
12
14
2
-
2
63
-
1
1
2,003
10
251
-
26
-
7
1
2
2
3
429
-
36
66
13
-
299
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Relationship
2019-20
2018-19
32.1 COMPENSATION OF KEY MANAGERIAL PERSONNEL
The compensation of directors and other member of Key Managerial Personnel during the year was as follows:
(` in crore)
Particulars
19 Donations
Hirachand Govardhandas Ambani Public Charitable Trust
Jamnaben Hirachand Ambani Foundation
Reliance Foundation
Reliance Foundation Institution of Education and Research
Reliance Foundation Youth Sports
20 Sale of Business (Through Slump Sale)
Reliance Corporate IT Park Limited
(IV) BALANCES AS AT 31ST MARCH, 2020
Other
Other
Other
Other
Other
Subsidiary
Particulars
Relationship
1
2
3
Loans and Advances
Jio Platforms Limited ^
Reliance 4IR Realty Development Limited ^ (Refer Note 2.4)
Reliance Corporate IT Park Limited
Reliance Projects & Property Management Services Limited ^ (Formerly Reliance Digital
Platform & Project Services Limited) (Refer Note 2.4)
Reliance Energy Generation and Distribution Limited
Reliance Gas Pipelines Limited
Reliance Industrial Investments and Holdings Limited (Refer Note 2.4)
Reliance Jio Infocomm Limited
Reliance Strategic Business Ventures Limited ^ (Refer Note 2.4)
Reliance Strategic Investments Limited
Reliance Sibur Elastomers Private Limited
Reliance Ventures Limited
Deposits
Gujarat Chemical Ports Limited (Formerly as Gujarat Chemical Port Terminal
Company Limited)
Jamnagar Utilities & Power Private Limited
Reliance Commercial Dealers Limited
Reliance Corporate IT Park Limited
Reliance Jio Infocomm Limited
Sikka Ports & Terminals Limited
Financial Guarantees
Recron (Malaysia) Sdn. Bhd.
Reliance Europe Limited
Reliance Exploration & Production DMCC
Reliance Global Energy Services Limited
Reliance Global Energy Services (Singapore) Pte. Limited
Reliance Holding USA, Inc.
Reliance Industries (Middle East) DMCC
Reliance Jio Infocomm Limited
Reliance Sibur Elastomers Private Limited
RIL USA, Inc.
^ Relationships established during the year.
Subsidiary
Subsidiary
Subsidiary
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
6
66
124
229
37
-
5
40
289
476
41
77
(` in crore)
As at
31st March,
2020
As at
31st March,
2019
11,002
1,648
14,751
10,793
-
670
10,497
-
5,351
2,420
110
-
71
118
160
-
-
353
659
1,447
378
6
160
22,700
580
731
2,497
-
-
-
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
Short-term benefits
i
ii Post employment benefits
iii Share based payments
2019-20
106
3
-
109
(` in crore)
2018-19
94
3
2
99
33.1 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
Partners and their Participating Interest (PI)
Country
1
Panna Mukta*
2019-20
-
2018-19
30% BG Exploration & Production India Limited – 30% ;
Oil and Natural Gas Corporation Limited – 40%
2 Mid and South Tapti
30%
30% BG Exploration & Production India Limited – 30% ;
Oil and Natural Gas Corporation Limited – 40%
3
4
5
6
NEC - OSN - 97/2
KG - DWN - 98/3**
GS - OSN - 2000/1 ***
KG-UDWHP-2018/1
66.67% 66.67% BP Exploration (Alpha) Limited – 33.33%
60% BP Exploration (Alpha) Limited – 33.33%
66.67%
-
90% Hardy Exploration and Production (India) Inc. – 10%
60%
- BP Exploration (Alpha) Limited – 40%,
India
India
India
India
India
India
* Panna Mukta Production sharing contract (“PSC”) expired on 21st December, 2019 and all assets and liabilities transferred to Government of India (“GOI”)
Nominee i.e. ONGC.
** Post default of Niko, GOI has approved revised PI (RIL 66.67% and BP 33.33%) in KGD6 effective from 29.08.2019 and accordingly PSC was amended.
*** Block GS-OSN-2000/1 has been surrendered to GOI w.e.f. 21st August, 2019.
33.2 QUANTITIES OF COMPANY’S INTEREST (ON GROSS BASIS) IN PROVED RESERVES AND PROVED DEVELOPED RESERVES:
Particulars
Oil:
Opening Balance
Revision of estimates
Production
Closing balance
Particulars
Gas:
Opening Balance
Revision of estimates
Production
Closing balance
Proved Reserves in India
(Million MT*)
Proved Developed Reserves in
India (Million MT*)
2019-20
2018-19
2019-20
2018-19
3.02
0.33
(0.11)
3.24
3.39
(0.18)
(0.19)
3.02
0.10
0.01
(0.11)
-
0.26
0.03
(0.19)
0.10
Proved Reserves in India
(Million M3*)
Proved Developed Reserves in
India (Million M3*)
2019-20
2018-19
2019-20
2018-19
55,239
4,274
(987)
58,526
56,479
194
(1,434)
55,239
9,961
251
(987)
9,225
11,201
194
(1,434)
9,961
*1 cubic meter (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl.
The reserve estimates for producing fields are revised based on the performance of producing fields and with respect to discovered
fields, the revision are based on the revised geological and reservoir simulation studies.
300
301
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
33.3 The Government of India (GOI), by its letters dated
2nd May, 2012, 14th November, 2013, 10th July, 2014
and 3rd June, 2016 has disallowed certain costs which
the Production Sharing Contract “(PSC”), relating to
Block KGDWN-98/3 entitles the Company to recover.
The Company continues to maintain that a Contractor is
entitled to recover all of its costs under the terms of the
PSC and there are no provisions that entitle the GOI to
disallow the recovery of any Contract Cost as defined in
the PSC. The Company has already referred the issue
to arbitration and communicated the same to GOI for
resolution of disputes. The demand from the GOI of $ 165
million (` 1,246 crore) being the Company’s share [total
demand $ 247 million; (` 1,869 crore)] towards additional
Profit Petroleum has been considered as contingent
liability. The arbitration tribunal has scheduled the seventh
procedural hearing in December 2020.
33.4
(a) GOI sent a notice to the KG D6 Contractor on
(b)
4th November, 2016 asking the Contractor to deposit
approximately US$1.55 billion on account of alleged
gas migration from ONGC’s blocks. RIL, as Operator,
for and on behalf of all constituents of the Contractor,
initiated arbitration proceedings against the GOI. The
Arbitral Tribunal vide its Final Award dated 24th July,
2018 upheld Contractor’s claims. GOI filed an Appeal on
15th November, 2018 before the Hon’ble Delhi High Court,
under Section 34 of the Arbitration Act, against the Final
Award of the Arbitral Tribunal and the Appeal is currently
pending adjudication before the Hon’ble Delhi High Court.
The matter is listed for hearing on 16th July, 2020.
In supersession of Ministry’s Gazette Notification no.
22011/3/2012-ONG.D.V. dated 10th January, 2014, the
GOI notified the New Domestic natural Gas Pricing
Guidelines 2014, the GOI has directed the Company
to instruct customers to deposit differential revenue
on gas sales from D1D3 field on account of the prices
determined under the above guidelines converted to
NCV basis and the prevailing price prior to 1st November
2014 ($ 4.205 per MMBTU) to be credited to the gas pool
account maintained by GAIL (India) Limited. The amount
so deposited by customer in Gas pool Account is ` 295
crore (net) as at 31st March, 2020 is disclosed under Other
Non-Current Assets (Refer Note 4). Revenue has been
recognised at the GOI notified prices in respect of gas
quantities sold from D1D3 field from 1st November, 2014.
(c) An arbitration was initiated by BG Exploration and
Production India Limited and RIL (together the Claimants)
against GOI on 16th December, 2010 under the PSCs
for Panna – Mukta and Tapti blocks due to difference
in interpretation of certain PSC provisions between
Claimants and GOI. The Arbitral Tribunal by majority
issued a final partial award (‘2016 FPA’), and separately,
two dissenting opinions in the matter on 12th October,
2016. Claimants challenged certain parts of the 2016
FPA before the English Courts, which delivered its
302
judgement on 16th April, 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 1st October, 2018 (‘2018 FPA’). GOI and Claimants
filed an appeal before the English Commercial Court
against this 2018 FPA. The English Commercial Court has
rejected GOI’s challenges to 2018 Final Partial Award
and upheld Claimants’ challenge that Arbitration Tribunal
had jurisdiction over the limited issue and has remitted
the issue back to the Arbitration Tribunal to be decided
by 28th May, 2020 (or such later date as the parties may
agree in writing or the Court may order). Claimants have
filed an application before the Arbitral Tribunal seeking
increase in the PSC Cost Recovery Limit and the same
is pending. The arbitration hearings to hear the said
application which was scheduled in March/April 2020
have been rescheduled due to COVID-19. The Arbitration
Tribunal is yet to schedule recomputation of accounts and
the quantification phase of the arbitration, which will take
place after determination of the Claimants’ request for an
increase in the cost recovery limit under the PSCs.
GOI 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 2016 FPA. The Claimants content
that GOI’s Execution Petition is not maintainable. GOI’s
Execution Petition is currently sub judice. Claimants have
also filed Application for Recall/Modification, challenging
the Orders of Delhi High Court wherein Directors were
directed to file Affidavits of Assets. The matter is listed on
19th June, 2020 for hearing.
(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 initiated
arbitration proceedings against the Company and BP
on 19th December, 2018 and the arbitration tribunal has
been constituted. Parties informed the Tribunal that they
have entered into a settlement agreement to resolve
the arbitration dispute and requested Tribunal to make a
Consent Award. Tribunal is in the process of issuing the
Final Award by Consent.
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. Moreover, the
Company considers above demand/disputes as remote.
33.5 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
Capital Expenditure on accrual Basis
Net Cash Used in Operating activity
Net Cash Used in investing activity
34. CONTINGENT LIABILITIES AND COMMITMENTS
(I) CONTINGENT LIABILITIES
(A) Claims against the Company/disputed liabilities not acknowledged as
debts*
(i) In respect of Joint Ventures
(ii) In respect of Others
(B) Guarantees
(i)
Guarantees to Banks and Financial Institutions against credit facilities
extended to third parties and other Guarantees
-
In respect of Others
(ii) Performance Guarantees
In respect of Others
(iii)
-
Outstanding Guarantees furnished to Banks and Financial Institutions
including in respect of Letters of Credits
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)
In respect of Joint Ventures
In respect of Others
(B) Uncalled liability on shares and other investments partly paid
(C) Other Commitments
(i) Other Commitments – Investments
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
4
-
4
-
-
-
-
2
2
(63)
2
(62)
2019-20
(` in crore)
2018-19
1,838
1,325
41,012
1,986
1,391
6,625
10,058
1,594
2,350
445
1,252
1,391
90,927
1,801
1,254
7,345
3,599
1,486
2,350
464
* The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
303
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
(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 ` 48.40
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 filed an appeal against the said order
before the Hon’ble SAT. The Hon’ble SAT has stayed the
direction on disgorgement until the disposal of the appeal.
The prohibition from dealing in equity derivatives in the
Futures and Options segment expired on March 23, 2018.
The appeal has been heard by the Hon’ble SAT and is
reserved for judgement.
35. CAPITAL MANAGEMENT
The Company adheres to a disciplined Capital Management
framework in order to maintain a strong balance sheet. The
main objectives are as follows:
a)
b)
c)
d)
Maintain AAA rating domestically and investment grade
rating internationally.
Manage foreign exchange, interest rates and
commodity price risk, and minimise the impact of market
volatility on earnings.
Diversify sources of financing and spread the maturity
across tenure buckets in order to manage liquidity risk.
Leverage optimally in order to maximise
shareholder returns.
The Net Gearing Ratio at end of the reporting period was as follows:
Gross Debt
Cash and Marketable Securities
Net debt (A)
Total Equity (As per Balance Sheet) (B)
Net Gearing (A/B)
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
2,62,345
1,45,535
1,16,810
4,24,584
0.28
1,61,720
1,12,302
49,418
4,05,322
0.12
Cash & Marketable Securities include cash and equivalents of ` 8,443 crore (Previous Year ` 3,768 crore), current investments of ` 70,030 crore (Previous
Year ` 59,640 crore), other marketable securities of ` 67,062 crore (Previous Year ` 48,894 crore) including investments in Jio Digital Fibre Private Limited
and Reliance Jio Infratel Private Limited.
36. 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, 2020
As at 31st March, 2019
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)
40,189
7,483
8,443
59,376
6,167
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
57,178
12,110
3,768
36,682
16,324
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29,949
9,933
3,359
-
25,735
9,933
855
-
32,831
803
4,662
-
16,441
803
11,728
-
1,45,852
66,455
1,487
77,910
1,17,563
37,611
2,161
77,791
2,62,345
71,048
85,346
5,316
562
-
-
-
-
-
-
-
-
5,316
562
-
-
-
-
-
1,61,720
88,241
21,117
2024
9
-
-
-
-
-
-
-
-
2024
9
-
-
-
-
-
* Exclude Group Company investments ` 2,73,113 crore (Previous Year ` 1,24,111 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, 2020
As at 31st March, 2019
At FVTPL
At FVTOCI
At FVTPL
At FVTOCI
(` in crore)
11,728
605
11,478
-
855
77,791
114
-
5
77,910
Other
Comprehensive
Income – Items
that will not be
reclassified to
Profit or Loss
-
11,481
248
494
11,728
Other Income –
` 246 crore
realised;
` 248 crore
unrealised
13
621
-
77,157
77,791
Other
Comprehensive
Income – Items
that will not be
reclassified to
Profit or Loss
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 are based on unobservable market data.
304
305
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
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 forward exchange
rates and yield curves at the balance sheet date.
The fair value of Over-the-Counter Foreign Currency
Option contracts is determined using the Black Scholes
valuation model.
Commodity derivative contracts are valued using available
information in markets and quotations from exchange,
brokers and price index developers.
The fair value of level 3 instruments is valued using
inputs based on information about market participants
assumptions and other data that are available.
g)
h)
The fair value of the remaining financial instruments is
determined using discounted cash flow analysis.
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. Within the boundaries of approved
Risk Management Policy framework the Company
uses derivative instruments to manage the volatility of
financial markets and minimise the adverse impact on its
financial performance.
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.
(` in crore)
Particulars
Borrowings
Trade and Other Payables
Trade and Other Receivables
Derivatives
- Forwards & Futures
- Currency Swap
- Options
Exposure
As at 31st March, 2020
As at 31st March, 2019
USD
1,25,212
77,663
(11,499)
EUR
18,820
855
(1,738)
JPY
10,717
17
(7)
USD
79,540
76,814
(9,257)
EUR
9,387
1,570
(166)
JPY
2,401
-
(3)
(52,219)
(3,712)
(3,620)
1,31,825
(16,558)
-
(1,929)
(550)
(10,704)
-
-
(17,865)
775
(3,987)
23 1,26,020
(10,504)
-
-
287
(2,375)
-
-
23
Sensitivity analysis of 1% change in exchange rate at the end of reporting period net of hedges:*
Foreign Currency Sensitivity
(` in crore)
Particulars
1% Depreciation in INR
Impact on Equity
Impact on P&L
Total
1% Appreciation in INR
Impact on Equity
Impact on P&L
Total
As at 31st March, 2020
As at 31st March, 2019
USD
EUR
JPY
USD
EUR
JPY
(601)
288
(313)
601
(288)
313
(3)
(11)
(14)
3
11
14
-
-
-
-
-
-
(753)
94
(659)
753
(94)
659
6
(9)
(3)
(6)
9
3
-
-
-
-
-
-
306
* Includes natural hedges arising from foreign currency denominated earnings, for which hedge accounting may be implemented.
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 borrowing and derivatives to interest rate changes at the end of the reporting period
are as follows:
Interest Rate Exposure
(` in crore)
As at
31st March, 2020
As at
31st March, 2019
Particulars
Borrowings
Non-Current – Floating (includes Current Maturities)*
Non-Current – Fixed (includes Current Maturities)*
Current#
Total
Derivatives
Foreign Currency Interest Rate Swaps
- Receive Fix
- Pay Fix
Rupees Interest Rate Swaps
- Receive Fix
- Pay Fix
Currency Swaps
Bond Future – Short
*Include ` 1,835 crore (Previous Year ` 722 crore) as Prepaid Finance Charges.
# Include ` 515 crore (Previous Year ` 192 crore) as Commercial Paper Discount.
1,24,647
88,257
51,791
2,64,695
-
51,452
3,925
6,125
3,712
400
57,988
65,357
39,289
1,62,634
1,729
1,066
5,850
7,015
775
184
(` in crore)
Particulars
Impact on Equity
Impact on P&L
Total Impact
ii) Commodity Price Risk
Interest rate Sensitivity
As at 31st March, 2020
As at 31st March, 2019
Up Move
(54)
(506)
(560)
Down Move
54
506
560
Up Move
(197)
(318)
(515)
Down Move
197
318
515
Commodity price risk arises due to fluctuation in prices of crude oil, other feed stock and products. The company has
a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices
and freight costs.
The Company’s commodity risk is managed centrally through well-established trading operations and control processes. In
accordance with the risk management policy, the Company enters into various transactions using derivatives and uses over-
the-counter as well as Exchange Traded Futures, Options and Swap contracts to hedge its commodity and freight exposure.
iii)
Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due
causing financial loss to the Company. Credit risk arises from company’s activities in investments, dealing in derivatives,
receivables from customers and other financial instruments. 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, respond and recognise cases of credit deterioration.
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, advance payments and factoring &
forfaiting without recourse to the Company. The company restricts its fixed income investments in liquid securities carrying
high credit rating.
307
Foreign Currency Exposure
Sensitivity analysis of 1% change in Interest rate:
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
iv) Liquidity Risk
D. HEDGE ACCOUNTING
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 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
Lease Liabilities (Gross)
Derivative Liabilities
Forwards
Options
Currency Swaps
Interest Rate Swaps
Total
^ Does not include Trade Payables (Current) ` 71,048 crore.
* Include ` 1,835 crore as Prepaid Financial Charges.
# Include ` 515 crore of Commercial Paper Discount.
Maturity Profile as at 31st March, 2020
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
3-5
Years
Above
5 Years
Total
(` in crore)
9,751
44,663
54,414
87
3,478
31
320
3
3,832
12,319
703
13,022
87
10,570
6425
16,995
165
58,895
-
58,895
592
67,580
-
67,580
552
53,789
-
53,789
5,129
2,12,904
51,791
2,64,695
6,612
122
-
240
1
363
119
-
415
342
876
75
-
-
47
122
-
-
-
122
122
-
-
-
-
-
3,794
31
975
515
5,315
(` in crore)
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
574
39,286
39,860
758
53
-
1
812
1,531
3
1,534
505
-
-
1
506
2,583
-
2,583
50,381
-
50,381
27,329
-
27,329
40,947
-
40,947
1,23,345
39,289
1,62,634
266
-
-
6
272
-
-
252
53
305
1
-
-
137
138
-
-
-
-
-
1,530
53
252
198
2,033
^ Does not include Trade Payables (Current) ` 88,241 crore.
* Include ` 722 crore as Prepaid Financial Charges.
# Include ` 192 crore of Commercial Paper Discount.
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 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 ` 10,301 crore (Previous Year ` 18,722 crore) and ` 12,112 crore
(Previous Year ` 20,059 crore) respectively. Effective interest rate for the year is 7.90% per annum (Previous Year 7.54% per
annum). Interest revenue recognised during the period ` 814 crore (Previous Year ` 1,060 crore).
Change in fair value gain /(loss) of ` 225 crore (Previous Year ` 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.
308
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. The Company 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)
Carrying Amount
Assets
Liabilities
Changes
in Fair Value
Hedge
Maturity
(` in crore)
Line Item in
Balance Sheet
-
-
-
-
-
-
-
38,468
5,65,932
5,708
3,214
1,213
April 2020 to
December 2023
Other Financial
Assets / Liabilities
480
-
-
37
(37)
April 2019 to
December 2019
Other Financial
Liabilities
39,048
3,57,970
612
393
132
April 2019 to
December 2021
Other Financial
Assets / Liabilities
Particulars
As at 31st March, 2020
Foreign Currency Risk
Foreign Currency Risk
Component – Forwards
Commodity Price Risk
Derivative Contracts
As at 31st March, 2019
Foreign Currency Risk
Foreign Currency Risk
Component-Forwards
Commodity Price Risk
Derivative Contracts
Hedged Items
Particulars
As at 31st March, 2020
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, 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
Carrying Amount
Assets
Liabilities
Changes
in Fair Value
(` in crore)
Line Item in Balance Sheet
-
3,214
-
6,706
37
131
-
3,324
-
116
3,141
-
-
198
414
-
-
3,069
Other Current Assets / Liabilities
(3,134)
(1,148)
37
20
(414)
262
Other Current Assets
Inventories
Other Current Assets
Other Current Assets / Liabilities
Other Current Assets
Inventories
309
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
B. Cash Flow Hedge
Hedging Instruments
Particulars
As at 31st March, 2020
Foreign Currency Risk
Foreign Currency Risk
Component – Trade Payables
Foreign Currency Risk
Component – Borrowings
Interest Rate Risk
Interest Rate Swaps
As at 31st March, 2019
Foreign Currency Risk
Foreign Currency Risk
Component – Trade Payables
Hedged Items
Particulars
As at 31st March, 2020
Foreign Currency Risk
Highly Probable Forecasted
Exports
Interest Rate Risk
Borrowings
As at 31st March, 2019
Foreign Currency Risk
Highly Probable Forecasted
Exports
C. Movement in Cash Flow Hedge
Nominal
Value
Carrying Amount
Assets
Liabilities
Changes in
Fair Value
Hedge
Maturity
48,694
18,491
49,931
20,759
-
-
-
-
52,966
(4,272)
19,384
(893)
405
(405)
April 2020 to
December 2021
April 2020 to
September
2022
March 2021 to
March 2025
20,747
12
April 2019 to
December 2019
(` in crore)
Line Item in
Balance Sheet
Trade Payables
Borrowings
Other Financial
Liabilities
Trade Payable
(` in crore)
Nominal
Value
Changes in Fair Value
Hedge
Reserve
Line Item in Balance Sheet
67,184
5,165
(5,165)
Other Equity
39. DETAILS OF RESEARCH AND DEVELOPMENT EXPENDITURE
Sr.
No.
Particulars
Capital
Revenue
a)
b)
Total
2019-20
1,244
1,294
2,538
(` in crore)
2018-19
1,286
1,091
2,377
40. SIGNIFICANT ARRANGEMENTS DURING THE YEAR
40.1 TRANSFER OF LIABILITIES FROM RELIANCE JIO INFOCOMM LIMITED (RJIL)
Pursuant to the Scheme of Arrangement amongst RJIL and certain class of its creditors, approved by the Hon’ble National
Company Law Tribunal, Ahmedabad bench vide order dated March 13, 2020, certain liabilities of ` 1,04,365 crore have stood
transferred to RIL with an equal amount of consideration and the same has been recognised in financial statements with effect
from appointed date i.e. December 16, 2019.
40.2 SCHEME OF AMALGAMATION OF RELIANCE HOLDING USA INC., RELIANCE ENERGY GENERATION AND DISTRIBUTION
LIMITED WITH THE COMPANY
The Board of Directors of the Company at its meeting held on 19th July, 2019 has approved the Scheme of Amalgamation of
Reliance Holding USA Inc. (RHUSA), Reliance Energy Generation and Distribution Limited (REGDPL) with the Company (the
Scheme), which inter alia provides for merger of RHUSA with REGDL and merger of REGDL with the Company under Sections
230 to 232 read with Section 234 and other applicable provisions of the Companies Act, 2013 and Section 18-209 of the
Delaware Limited Liability Company Act.
The Company has filed above Scheme with the Hon’ble National Company Law Tribunal, Mumbai Bench, for their approval on
April 29, 2020.
49,931
20,759
405
(12)
(718)
Other Equity
The Board of Directors have recommended dividend of ` 6.5 per fully paid up equity share of ` 10/- each for the financial year 2019-20.
41. EVENTS AFTER THE REPORTING PERIOD
12
Other Equity
43. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved for issue by the Board of Directors on April 30, 2020.
42. The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable.
Particulars
2019-20
2018-19
Line Item in Balance Sheet/Statement of
Profit and Loss
(` in crore)
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
12
(6,264)
369
(5,883)
-
(1,743)
Items that will be reclassified to Profit or
Loss
1,755 Value of Sale
12 Other Comprehensive Income
Sr.
No.
1
2
3
4
37. As per Ind AS 108 – “Operating Segment”, segment information has been provided under the Notes to Consolidated
Financial Statements.
38. 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, 2020
Sr.
No.
Particulars
1
2
3
4
5
6
7
8
Reliance Global Energy Services Limited
Reliance Holding USA, Inc.
Reliance Industries (Middle East) DMCC
Reliance Jio Infocomm Limited
Reliance Sibur Elastomers Private Limited
Reliance Jio Infratel Private Limited
Jio Digital Fibre Private limited
RIL USA, Inc.
All the above Corporate Guarantees have been given for business purpose.
310
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
7
22,700
1,372
-
2,497
9,094
3,260
662
6
20,747
1,391
44,251
2,282
5,500
-
605
As per our Report of even date
For and on behalf of the Board
For D T S & Associates LLP
Chartered Accountants
(Registration No.142412W/ W100595)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Alok Agarwal
Chief Financial Officer
Mumbai
Date: April 30, 2020
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Chairman and Managing Director
Executive Directors
Non-Executive Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P.K. Kapil
Nita M. Ambani
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K.V. Chowdary
311
STANDALONENotesto the Standalone Financial Statements for the year ended 31st March, 2020Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Consolidated Financial
Statements
Independent Auditors’ Report on Financial Statements
Balance Sheet
Statement of Profit and Loss
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
313
326
327
328
330
332
Note
1
2
3
Property, Plant and Equipment, Other Intangible
Assets, Capital Work-In-Progress and Intangible
Assets Under Development
Investments – Non-Current
Loans – Non-Current
4 Deferred Tax
5 Other Non-Current Assets
6
7
8
Inventories
Investments – Current
Trade Receivables
9 Cash and Cash Equivalents
10 Other Financial Assets – Current
11 Other Current Assets
12 Taxation
13 Share Capital
14 Other Equity
15 Borrowings – Non-Current
16 Other Financial Liabilities – Non-Current
17 Deferred Payment Liabilities
18 Provisions – Non-Current
19 Borrowings – Current
20 Other Financial Liabilities – Current
21 Other Current Liabilities
22 Provisions – Current
23 Revenue From Operations
24 Other Income
25 Changes in Inventories of Finished Goods,
Work-In-Progress and Stock-In-Trade
26 Employee Benefits Expense
27 Finance Costs
28 Other Expenses
29 Earnings Per Share (EPS)
30 Related Parties Disclosures
31 Oil & Gas Disclosures
32 Contingent Liabilities and Commitments
33 Capital Management
34 Financial Instruments
35 Segment Information
36 Enterprises Consolidated as Subsidiary in
Accordance with Indian Accounting Standard 110 –
Consolidated Financial Statements
37 Significant Enterprises Consolidated as Associates
and Joint Ventures in Accordance with Indian
Accounting Standard 28 – Investments in Associates
and Joint Ventures
38 Additional Information, as Required Under Schedule
III to The Companies Act, 2013, Of Enterprises
Consolidated as Subsidiary / Associates / Joint
Ventures
39 Assets and Liabilities Classified as Held For Sale
40 Events after the Reporting Period
343
344
350
350
351
351
352
352
352
353
353
353
354
355
356
358
359
359
359
360
360
360
361
361
362
362
366
366
367
368
377
380
380
381
387
389
396
399
409
409
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 which includes joint
operations (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,
2020, 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, 2020, 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 ‘Auditors’ Responsibilities
for the Audit of the Consolidated Financial Statements’ section
of our report. We are independent of the Group, its associates
and joint ventures in accordance with the ‘Code of Ethics’ issued
Key audit matter
A. Capitalisation of property, plant and equipment
During the year ended March 31, 2020, the Holding Company has
incurred significant capital expenditure. Further, out of the total additions
to property, plant and equipment of ` 1,13,300 crore of the Holding
Company in the current year, significant part of the capitalisation
pertains to the Gasification project, including 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. All units of the gasification complex and
related integrated projects have been successfully commissioned and
capitalised during the year.
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.
EMPHASIS OF MATTER
We draw attention to Note 1.8 of the Consolidated Financial
Statements in respect of Composite Scheme of arrangement
approved by National Company Law Tribunal, Ahmedabad during
the year. As per the Scheme, the Group has accounted the fair
valuation impact of ` 38 crore to its retained earnings relating
to intangible assets under development, overriding the Indian
Accounting Standards. Our opinion is not modified in respect
of this matter.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
Consolidated Financial Statements for the financial year ended
March 31, 2020. 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 Auditors’ 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.
How our audit addressed the key audit matter
Our audit procedures included and were not limited to the following:
• Performed walk-through of the capitalisation process and tested the
design and operating effectiveness of the controls in the process.
• Assessed the nature of the additions made to property, plant and
equipment and capital work-in-progress on a test check basis to test
that they meet the recognition criteria as set out in para 16 to 22 of
Ind AS 16, including any such costs incurred specifically for trial run.
• Assessed that the borrowing cost capitalised (including foreign
exchange loss to the extent it is considered as an adjustment to
interest cost) is in accordance with the accounting policy of the
Holding Company.
313
CONSOLIDATEDManagement ReviewNotice Financial StatementsGovernance Corporate Overview Independent Auditors’ Report
Key audit matter
Significant level of judgement is involved to ensure that the aforesaid
capital expenditure/additions meet the recognition criteria 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 amortisation/
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, 2020 is ` 1,63,427 crore. While RJIL continues to augment
wireless network capacity therein, the wireline telecommunication was
capitalised during the year. 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 (c) and B.3 (e) of
the consolidated financial statements).
Determination of timing of capitalisation as well as rate of amortisation/
depreciation in order to ensure compliance with the applicable
Accounting Standards involve significant estimates and judgement and
use of technology. Accordingly, it has been considered as a key audit
matter.
How our audit addressed the key audit matter
• Reviewed the project completion/handover certificate provided by
the management to determine whether 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. Testing the design, implementation and operating
effectiveness of controls in respect of review of timing of
the capitalisation with source documentation along with key
performance indicators used for capitalisation of the wireline
project;
ii. 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;
iii. Involved 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 and the IT environment over the relevant application
systems used in monitoring of actual consumption thereof;
iv. 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 and testing the mathematical
accuracy of computation of amortisation/depreciation charge
for the year.
B. Estimation of oil reserves, decommissioning liabilities and impairment evaluation of development rights
Refer to Note 31.2 on proved reserves and production on product and
geographical basis, Note C(A) on estimation of Oil and Gas reserves
and Note B.3 (t) on Accounting for Oil and Gas activity, Note C(B) on
Decommissioning Liabilities, Note C(C) on Property Plant and Equipment/
Other Intangible Assets and Note B.3 (k), on provisions, Note B.3 (j)
on impairment of non-financial assets and Note 18 of the consolidated
financial statements.
the oil and gas reserves.
Our work included and were not limited to the following procedures:
• Performed walk-through of the estimation process associated with
The determination of the Holding Company’s oil and natural gas reserves
requires significant judgements 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.
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
consolidated 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 utilisation of assets by other fields, the
scope of abandonment activity and pre-tax rate applied for discounting.
• Assessed the valuation methodology, including assumptions around
the key drivers of the cash flow forecasts including future oil and gas
prices, estimated reserves, discount rates used, etc. by engaging
valuation experts.
• Assessed the objectivity, independence and competence of the
Holding Company’s specialists involved in the process and valuation
specialists engaged by us.
• Assessed whether the updated oil and gas reserve estimates were
included in the Holding Company’s, accounting for amortisation/
depletion and disclosures of proved reserves and proved developed
reserves in the consolidated financial statements.
• Tested the assumption used in determining the decommissioning
provisions. Also compared these assumptions with the previous year
and enquired for reasons for any variations.
• In respect of the key audit matter reported by the auditors of RHUSA,
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: -
Key audit matter
Accordingly, the same is considered as a key audit matter.
How our audit addressed the key audit matter
• As reported to us by the subsidiary auditor, they have performed
The auditors of Reliance Holding USA Inc. (‘RHUSA’), subsidiary of the
Holding Company have also reported a key audit matter on the aforesaid
topic.
C. 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) 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 31.3 and Note 31.4 (b)).
b) Claim against the Holding Company in respect of gas said to have
migrated from neighbouring blocks (KGD6) (Note 31.4 (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 31.4 (c)).
d) Suit for specific performance of a contract for supply of natural gas
before the Hon’ble Bombay High Court (Note 31.4 (d)).
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 including the testing of IT controls and
information provided by the entity (IPE) on the IT application used
for reserve and well data management; 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 using
audited oil and gas reserves and reasonableness of the discount
rate used by the subsidiary for calculating the future net income for
impairment calculation.
Our audit procedures included and were not limited to the following:
• Assessed the 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.
• Discussed with the management on the development in these
litigations during the year ended March 31, 2020.
• Rolled out of enquiry letters to the Holding Company’s legal counsel
and noted the responses received.
• Assessed the responses received from Holding Company’s legal
counsel by engaging legal experts.
• Assessed the objectivity, independence and competence of the
Holding Company’s legal counsel involved in the process and legal
experts engaged by us.
• Reviewed the disclosures made in the consolidated financial
e) Arbitration proceedings relating to notice of withdrawal issued to Niko
statements in this regard.
(NECO) Limited (Note 31.4 (e)).
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.
D. 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.
Our procedures included and were not limited to the following:
• Assessed the complexity of the IT environment by engaging IT
specialists and through discussion with the head of IT and internal
audit and identified IT applications that are relevant to our audit.
• Assessed 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.
• Assessed 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.
• Assessed the operating effectiveness of controls relating to data
transmission through the different IT systems to the financial
reporting systems by engaging IT specialist.
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Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewGovernance Corporate OverviewNotice CONSOLIDATEDFinancial Statements Independent Auditors’ Report
Key audit matter
E. Fair value measurement
As at March 31, 2020, the Holding Company has investments of ` 78,107
crore in the equity and Optionally Convertible Preference Shares (‘OCPS’)
of Jio Digital Fibre Private Limited (‘JDFPL’) and Reliance Jio Infratel
Private Limited (‘RJIPL’) which are measured at fair value as per Ind
AS 109 read with Ind AS 113.
These investments are Level 3 investments as per the fair value hierarchy
in Ind AS 113 and accordingly determination of fair value is based on
a high degree of judgement and input from data that is not directly
observable in the market. Further, the fair value is significantly influenced
by the expected pattern of future benefits of the tangible assets of JDFPL
(fiber assets) and RJIPL (tower assets). Refer Note 2 and Note 34A in the
consolidated financial statements.
The auditors of Reliance Strategic Business Ventures Limited, (‘RSBVL’),
subsidiary of the Holding Company have reported a key audit matter
on fair valuation of investments of ` 5,511 crore held outside the Group
and stated at fair value through Other Comprehensive income or at fair
value through Profit and Loss in accordance with requirements of Ind AS
109 read with Ind AS 113. Of the above, investments of ` 4,557 crore are
Level 3 investments, where determination of fair value is based on a high
degree of judgement. Accordingly, the same has been considered as a
key audit matter.
F. Impact due to significant volatility in crude prices
Due to the ongoing geopolitical and economic situation in the world,
there has been significant slowdown of economic activities and
significant volatility in crude oil prices during March 2020 and subsequent
to the year end.
Management has assessed the impact of the aforesaid events on the
consolidated financial statements specifically in areas of inventory,
impairment of certain investments, development rights, etc. including
subsequent events upto the reporting date. Pursuant to such evaluation,
Holding Company has valued its inventories at net realisable value
and recognised a loss of ` 4,245 crore (net of current tax of ` 899
crore) which has been disclosed as exceptional items in the statement
of profit and loss (Refer Note C (J) of Critical Accounting Judgements
and Key sources of Estimation uncertainty and Note 28.2). Estimates
and judgements are involved in determining the net realisable value
of inventory including related hedges, impairment of investments and
development rights stated above.
Accordingly, the same has been considered as a key audit matter.
G. Impairment of Goodwill
The Group’s balance sheet as at March 31, 2020 includes ` 10,259
crore of goodwill, representing 1% of the total Group assets. As per the
requirements of Ind AS 36 ‘Impairment of Assets’ and the accounting
policy of the Group, goodwill is tested for impairment annually.
Goodwill is allocated to the Cash Generating Unit (CGU) to which it
belongs and the Group determines the CGU’s recoverable value using
the discounted cash-flow approach. Any deficit between the recoverable
value so determined and the carrying value of the CGU (including
goodwill) is recorded as impairment (if any).
How our audit addressed the key audit matter
Our audit procedures included and were not limited to the following:
• Reviewed the fair valuation reports obtained by the management by
involvement of external valuation experts.
• Assessed the methodology and the assumptions applied in
determining the fair value by engaging valuation specialists.
• Assessed the objectivity, independence and competence of the
Holding Company’s external specialists involved in the process and
valuation specialists engaged by us.
• Assessed the adequacy of disclosure in Note 2 and Note 34A in the
consolidated financial statements.
• In respect of the key audit matter reported to us by the auditors of
RSBVL, 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.
ii.
With respect to quoted investments, assessment of the fair value
based on the latest quoted prices available on the stock exchanges;
With respect to fair valuation based on the valuation model,
assessment of the model used for determining the fair value based
on their knowledge of the industry;
iii. Assessing the key assumptions used to estimate fair valuation based
on present economic factors and relevance to the industry;
iv. Assessed the potential impact of reasonable possible downside
changes in the key assumptions.
Our audit procedures included and were not limited to the following:
• Obtained and reviewed the management impact assessment on
account of reduction in oil prices, including judgement and estimates
applied in determining the areas of impact.
• Assessed the determination of impact on account of inventories
valued at net realisable value, including related hedges.
• Performed subsequent event procedures up to the date of
the audit report.
• Performed inquiry procedures with the auditors of the components in
relation to specific impacts on their financial statements on account of
the aforesaid events.
• Assessed the disclosure made in Note 28.2 in the consolidated
financial statements.
• Also refer procedures stated in Point B relating to ‘Estimation of oil
reserves, decommissioning liabilities and impairment evaluation of
development rights’
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.
• Assessed the assumptions around the key drivers of the cash flow
forecasts including discount rates, expected revenue growth rates
and operating margin considered, including engaging valuation
specialists in certain cases.
Key audit matter
The determination of the recoverable amount involves use of
assumptions to determine the future cash flows, including revenue
growth, operating margin and discount rates. Due to the inherent
uncertainty associated with these assumptions and the consequent cash
flow projections, the same is considered as a key audit matter.
How our audit addressed the key audit matter
• Discussed potential changes in key drivers as compared to previous
year/actual performance with management in order to evaluate
the inputs and assumptions used in the cash flow forecasts
were reasonable.
• Assessed the recoverable value headroom by performing sensitivity
testing of key assumptions used.
• Assessed the adequacy of disclosure in Note C (F) of Critical
Accounting judgements and key sources of estimation uncertainty in
the consolidated financial statements.
H. Loss of control on Petroleum Trust and Reliance Services and Holdings Limited
Refer Note 2A and Note 13.7 in the consolidated financial statements.
Our audit procedures included and were not limited to the following:
In the current year, the trust deed of Petroleum Trust (‘PT’) of which
Reliance Industrial Investments and Holdings Limited (a wholly-owned
subsidiary of the Holding Company or ‘RIIHL’) was the settlor and sole
beneficiary was amended, as a result of which operational powers to
control and manage the trust were transferred from RIIHL to independent
trustees, resulting in loss of control over PT. Further, RIIHL sold 50%
holding in Reliance Services and Holdings Limited (erstwhile wholly-
owned subsidiary of RIIHL or ‘RSHL’) to PT, resulting in loss of control in
RSHL. Consequently, RSHL and PT became an associate of the Holding
Company.
Subsequent to above, certain subsidiaries holding treasury shares of the
Holding Company were amalgamated under a composite court scheme
of arrangement into RSHL, whereby RSHL has given consideration in the
form of preference shares to RIIHL and PT. Accordingly, RSHL and PT
have fair valued their investments in their standalone financial statements.
Accordingly, as per equity method of accounting in Ind AS 28, a gain of
` 24,411 crore has been recognised in the other comprehensive income
in the consolidated financial statements of the Group.
• Obtained and read the trust deed and the amendment to the trust
deed of Petroleum Trust.
• Assessed management’s position on loss of control which is
supported by external legal opinions obtained by the Holding
Company in this regard.
• Assessed the objectivity, independence and competence of the
external legal expert involved in the process.
• Assessed the measurement and recognition of loss of control
on the consolidated financial statements in line with Ind
AS 110 and Ind AS 28.
Judgement is involved in determining the loss of control over the PT and
accordingly, the same is considered as a key audit matter.
I. Changes in presentation of segment information and new reportable segment
Based on overall internal reorganisation and increased focus of the
Executive Committee (Chief operation decision maker or CODM),
‘financial services’ has been identified as a separate operating segment.
This segment principally comprises of management and deployment of
identified resources of the Company to various activities including
non-banking financial services, insurance broking etc. Accordingly,
identified assets and related income which were erstwhile lying in
“Unallocated” have been transferred to the financial services segment.
Our audit procedures included and were not limited to the following:
• Obtained and read the notes approved by the Executive Committee
(CODM) which records decisions made by the EC in review of
business performance and allocation of resources to segments.
• Assessed the discrete financial information for the financial
services segment.
• Assessed compliance with the disclosure requirements of
Schedule III of the Companies Act, 2013 and Ind AS 108 including
restatement of comparative segment information in the consolidated
financial statements.
The aforesaid change has also resulted in a change in the presentation
and disclosure of interest income relating to the financial services
segment in the statement of profit and loss from “other income” to
“Revenue from operations”.
In addition to above, the CODM has evaluated its treasury function
and has emphasised that management of long-term resources and
business trade financing will be a part of centralised treasury function in
Unallocable.
As segment reporting is a significant disclosure, the above change has
been considered as a key audit matter. Refer Note 35 of the consolidated
financial statements.
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Key audit matter
J. Revenue recognition
The accounting policies of the Group for revenue recognition are set out
in Note B.3 (q) 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 revenue
streams and tariff schemes involve exercise of judgements and estimates
regarding application of the revenue recognition accounting standards.
Reliance Retail Ventures Limited (‘RRVL’), a subsidiary of the Holding
Company, trades in various consumption baskets on a principal basis with
high volume of transactions and recognises 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 from customers.
Reconciliation of mode of payments with revenue recognised is identified
as a key audit matter by their auditors. Further, RRVL renders various
services on principal basis and recognises revenue at a point in time
when the customer consumes the services rendered. Testing of whether
the performance obligation is satisfied for such services is identified as a
key audit matter by their auditors.
How our audit addressed the key audit matter
Our audit procedures included 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 statements 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.
involvement of internal IT specialists and testing of the IT
environment inter alia for access controls, change management and
application specific controls over the subsidiary company’s billing
and other relevant support systems;
ii. evaluation and testing of the design and operating effectiveness of
the relevant business process controls, inter-alia controls over the
capture, measurement and authorisation of revenue transactions;
iii. Testing collections and, the reconciliation between revenue per
the billing system and the financial records and testing supporting
documentation for manual journal entries posted in revenue;
iv. validation of significant judgements and estimates exercised by
the management regarding the application of revenue recognition
accounting standard with respect to certain revenue streams and
tariff schemes, in accordance with 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 and testing of the operating effectiveness of
internal controls (including test of details on representative sampling
basis) 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.
ii. Evaluation of the design and testing of the operating effectiveness
of internal controls (including test of details on representative
sampling basis) relating to recognition of revenue from rendering of
services for ensuring revenue recognition at a point in time by way
of customer acknowledgement of the consumption of such services
and receipt of consideration.
Key audit matter
K. 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.
The auditors of RRVL have also reported valuation of inventory as a key
audit matter due to involvement of judgement relating to determination of
net realisable value (NRV) of inventories (except Gold and Silver), which is
based on historical evidence and the current economic conditions.
Refer Note B.3 (i) to the consolidated financial statements of the Group.
L. Implementation of Ind AS 116 – Leases
The auditors of Reliance Jio Infocomm Limited (‘RJIL’), a subsidiary of
the Holding Company, have reported a key audit matter on Ind AS 116 –
Leases (the ‘Standard’).
Implementation of the Standard has a significant impact on the asset
and liability position of RJIL and involves review of significant contractual
arrangements to determine those which fall under the purview of the
Standard. Judgement is also involved in determining the application of
the Standard to the relevant contractual arrangements about whether an
arrangement is scoped out of the purview of the Standard by virtue of it
not involving an identified asset, composite arrangements which involve
both, an element of service and identified asset and variable leasing
arrangements which do not require recognition of a right of use asset and
a corresponding lease liability.
Accordingly, implementation of Ind AS-116 has been reported as a key
audit matter.
Refer Note B.3 (d) of significant accounting policies, Note C(K) of Critical
Accounting Judgements and Key sources of Estimation uncertainty and
Note 1.7 to the consolidated financial statements of the Group.
How our audit addressed the key audit matter
Our audit procedures included 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 and estimation
of NRV on a test basis;
ii. Performance of test of controls through verification of documentary
evidences including verification of count sheets and 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,
verification of shrinkage and related entries recorded in books of
accounts.
iv. Performance of test of details through sample selection of inventory
as part of testing the NRV estimate by considering subsequent sales
prices and management’s latest forecast and trading plans in terms
of planned discounts.
Our audit procedures included and were not limited to the following:
• Obtained and read the financial statements of RJIL to identify
whether Ind AS 116 accounting policies are included in the
consolidated financial statement of the Group.
• In respect of the key audit matter reported to us by the auditors
of RJIL, 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 and testing of the design and operating effectiveness of
controls in respect of review of subsidiary’s contractual agreements
to identify those which fall under the purview of the Standard,
determining the application of the Standard to the relevant
contractual agreements;
ii.
involvement of internal subject matters experts, inter-alia telecom
specialists, accounting standard specialists to review the
judgements exercised by the management in determining the
application of the Standard;
iii. Substantive testing of the computation of the Right of Use
Asset (‘RoU’) and lease liability, amortisation of the ROU and the
corresponding finance cost and impact on taxation;
iv. review of accounting policies on Ind AS 116- leases included in the
financial statements and testing of the disclosures made in the
financial statements mandated by the Standard.
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How our audit addressed the key audit matter
Key audit matter
M. Impairment of assets of subsidiaries of Reliance Industrial Investments and Holding Limited and Reliance Strategic Business
Venture Limited
The auditors of Reliance Industrial Investments and Holdings Limited,
(‘RIIHL’) and Reliance Strategic Business Ventures Ltd, (‘RSBVL’),
subsidiaries 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 and RSBVL 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.
• In respect of the key audit matter reported to us by the auditors of
RIIHL and RSBVL, we performed inquiry of the audit procedures
performed by them to address the key audit matter. As reported to
us by the subsidiary auditors, the following procedures have been
performed by them for material subsidiaries: -
its subsidiaries to identify whether any impairment has been recorded
in the current year.
• Obtained and read the financial statements of RIIHL and RSBVL and
Our audit procedures included and were not limited to the following:
i. Assessment of the net worth of RIIHL and RSBVL subsidiaries/
associates on the basis of latest available financial statements.
ii. 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.
iii. Assessment of the input data and key assumptions used to
determine the fair value of ‘subsidiaries’ assets, cash flow estimates
including sensitivity analysis of key assumptions used.
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 judgements 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.
INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITORS’ 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 auditors’
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
320
AUDITORS’ 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 auditors’ 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 judgement 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 with reference
to financial statements 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
auditors’ 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 auditors’ report.
However, future events or conditions may cause the Group
and its associates and joint ventures to cease to continue as
a going concern.
• 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.
• 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, 2020 and are therefore the
key audit matters. We describe these matters in our auditors’ 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 MATTERS
(a) The Consolidated Financial Statements include the Holding
Company’s proportionate share in an unincorporated joint
operation relating to total assets of ` Nil as at March 31, 2020,
total expenditure of ` 177 crore, the elements making up the
Cash Flow Statement for the year ended March 31, 2020
and related disclosures in respect of an unincorporated joint
operation which is based on statements from the operators
and certified by the management. Our opinion is not modified
in respect of this matter.
(b)
(1)
The accompanying Consolidated Financial Statements
include the financial statements and other financial
information of 18 subsidiaries which reflect total assets of
` 1,40,363 crore as at March 31, 2020, total revenues of
` 1,45,810 crore and net cash outflows of ` 3,493 crore for
the year ended on that date, and the financial statements
and other financial information of an associate which
reflects Group’s share of net profit after tax of ` 4 crore for
the year ended March 31, 2020, which have been audited
by one of the joint auditors, individually or together with
another auditor.
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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, 2020 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;
(i) With respect to the other matters to be included in the
Auditors’ 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
Matters’ paragraph:
i.
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 32 to
the Consolidated Financial Statements;
ii. 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;
iii. 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, 2020 except for an amount of ` 1.63 crore
which are held in abeyance due to pending legal cases.
For D T S & Associates LLP
Chartered Accountants
ICAI Firm Reg. Number:
142412W/W100595
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Reg. Number:
324982E/E300003
per T P Ostwal
Partner
Membership No.: 030848
UDIN: 20030848AAAAAS5679
per Vikas Kumar Pansari
Partner
Membership No.: 093649
UDIN: 20093649AAAAAO6374
Mumbai
Date: April 30, 2020
Mumbai
Date: April 30, 2020
(2) We did not audit the financial statements and other
financial information, in respect of 321 subsidiaries,
whose Ind AS financial statements include total assets of
` 6,52,382 crore as at March 31, 2020, and total revenues
of ` 2,06,641 crore and net cash (inflows) of ` 18,656 crore
for the year ended on that date and financial statements
and other financial information of 97 associates and
30 joint ventures which reflects Group’s Share of net
profit after tax of ` 6 crore for the year ended March
31, 2020. These Ind AS financial statement and other
financial information have been audited by other auditors,
which financial statements, other financial information
and auditors’ 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-section (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 report(s) of such
other auditors.
(3) The accompanying Consolidated Financial Statements
include unaudited financial statements and other
unaudited financial information in respect of 13
subsidiaries, whose financial statements and other
financial information reflect total assets of ` 46 crore as
at March 31, 2020, and total revenues of ` 95 crore and
net cash (inflows) of ` 1 crore for the year ended on that
date and the unaudited financial statements and other
unaudited financial information in respect of 15 associates
and 18 joint ventures which reflects Group’s share of net
profit after tax of ` 97 crore for the year ended March 31,
2020. 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-section (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 statements 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.
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
matters’ paragraph we report, to the extent applicable, that:
(a) 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;
(b)
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;
(c) 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;
(d)
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;
(e) The matter prescribed in Emphasis of Matter paragraph
above, in our opinion, does not have an adverse effect on the
functioning of the Group.
(f) On the basis of the written representations received from the
directors of the Holding Company as on March 31, 2020 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, 2020 from being appointed as a
director in terms of Section 164 (2) of the Act;
(g) 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 subsidiaries, associates and joint
ventures, incorporated in India, refer to our separate Report in
“Annexure 1” to this report;
322
323
Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewGovernance Corporate OverviewNotice CONSOLIDATEDFinancial Statements Independent Auditors’ Report
ANNEXURE 1
TO THE INDEPENDENT AUDITORS’ 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 which includes joint
operations as of and for the year ended March 31, 2020, we have
audited the internal financial controls over financial reporting
of Reliance Industries Limited which includes joint operations
(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 (the “Guidance Note”) issued by the
Institute of Chartered Accountants of India. These responsibilities
include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including
adherence to 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.
AUDITORS’ 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 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 auditors’ 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.
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 below, 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 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 31,2020, 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 statement of 280 subsidiaries, 55 associates
and 22 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 LLP
Chartered Accountants
ICAI Firm Reg. Number:
142412W/W100595
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Reg. Number:
324982E/E300003
per T P Ostwal
Partner
Membership No.: 030848
UDIN: 20030848AAAAAS5679
per Vikas Kumar Pansari
Partner
Membership No.: 093649
UDIN: 20093649AAAAAO6374
Mumbai
Date: April 30, 2020
Mumbai
Date: April 30, 2020
324
325
Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewGovernance Corporate OverviewNotice CONSOLIDATEDFinancial Statements Balance Sheet
As at 31st March, 2020
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, 2020
(` in crore)
As at
31st March, 2019
1
1
1
1
2
3
4
5
6
7
8
9
10
11
39
13
14
15
16
17
18
4
19
20
21
22
39
4,35,920
59,096
10,259
86,479
50,010
2,03,852
21,732
2,900
37,407
9,07,655
73,903
72,915
19,656
30,920
669
27,434
32,763
2,58,260
-
11,65,915
6,339
4,46,992
8,016
1,97,631
18,804
18,839
1,790
54,123
465
2,91,652
93,786
96,799
1,44,778
75,663
1,890
4,12,916
-
7,04,568
11,65,915
3,02,115
1,50,178
11,997
84,262
29,285
1,64,612
5,452
4,776
17,676
7,70,353
67,561
71,023
30,089
11,081
545
10,283
36,804
2,27,386
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
Statement of Profit and Loss
For the year ended 31st March, 2020
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
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, EXCEPTIONAL ITEM AND TAX
Share of Profit / (Loss) of Associates and Joint Ventures
PROFIT BEFORE EXCEPTIONAL ITEM AND TAX
Exceptional Item (Net of Tax)
PROFIT BEFORE TAX *
TAX EXPENSES *
Current Tax
Deferred Tax
PROFIT FOR THE YEAR
OTHER COMPREHENSIVE INCOME:
i.
ii
iii.
iv.
Total Other Comprehensive Income for the Year [Net of Tax]
Total Comprehensive Income for the Year
NET PROFIT ATTRIBUTABLE TO:
a) 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 `) – Before Exceptional Item
Basic (in `) – After Exceptional Item
Diluted (in `) – Before Exceptional Item
Diluted (in `) – After Exceptional Item
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
Notes
23
24
25
26
27
1
28
28.2
12
12
24.1
24.2
29
29
29
29
1 to 42
2019-20
5,91,778
67,427
6,59,205
47,560
6,11,645
13,956
6,25,601
2,60,621
1,49,667
(5,048)
14,902
14,075
22,027
22,203
89,211
5,67,658
57,943
107
58,050
(4,444)
53,606
8,630
5,096
39,880
22,286
(1,088)
(7,085)
1,180
15,293
55,173
39,354
526
15,311
(18)
54,665
508
70.66
63.49
70.66
63.49
(` in crore)
2018-19
5,85,540
39,672
6,25,212
42,118
5,83,094
8,386
5,91,480
2,75,237
1,23,930
(4,680)
13,885
12,488
16,495
20,934
78,067
5,36,356
55,124
103
55,227
-
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
66.82
66.80
66.80
* Profit before tax is after Exceptional Item and tax thereon and Tax Expenses are excluding the Current Tax on Exceptional Item.
1 to 42
As per our Report of even date
For and on behalf of the Board
As per our Report of even date
For and on behalf of the Board
For D T S & Associates LLP
Chartered Accountants
(Registration No.142412W/ W100595)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Alok Agarwal
Chief Financial Officer
Mumbai
Date: April 30, 2020
326
Chairman and Managing Director
Executive Directors
Non-Executive Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P.K. Kapil
Nita M. Ambani
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K.V. Chowdary
For D T S & Associates LLP
Chartered Accountants
(Registration No.142412W/ W100595)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Alok Agarwal
Chief Financial Officer
Mumbai
Date: April 30, 2020
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Chairman and Managing Director
Executive Directors
Non-Executive Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P.K. Kapil
Nita M. Ambani
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K.V. Chowdary
327
Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewGovernance Corporate OverviewNotice CONSOLIDATEDFinancial Statements
Statement of Changes in Equity
For the year ended 31st March, 2020
A. EQUITY SHARE CAPITAL
Balance as at
1st April, 2018
5,922
Change during
the year 2018-19
4
Balance as at
31st March, 2019
5,926
Change during
the year 2019-20
413
(` in crore)
Balance as at
31st March, 2020
6,339
B. OTHER EQUITY
Balance as at
1st April,
2019
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,
2020
As at 31st March, 2020
Share Application Money Pending Allotment
RESERVES AND SURPLUS
Capital Reserve
Capital Redemption Reserve
Debenture Redemption Reserve
Share Based Payments Reserve
Statutory Reserve
Special Economic Zone Reinvestment
Reserve
Securities Premium
Instruments Classified as Equity
General Reserve
Retained Earnings
2
291
14
9,412
7
484
-
41,164
-
2,55,016
12,330
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
40
15
-
77
5,500
-
(4)
-
-
-
-
-
-
-
39,354
-
-
-
(3,852)
-
-
-
(732)
- 20,207
4,165
-
-
-
(8,496)
(5,632)
Other Comprehensive Income#
62,466
15,311
-
-
-
(181)
Total
3,81,186
54,665
(3,852)
(732)
-
15,691
* Refer Note 13.7.
# Includes net movement in Foreign Currency Translation Reserve.
(1)
-
-
-
11
-
-
24
-
-
-
-
34
1
291
50
9,427
18
561
5,500
61,395
4,165
2,55,016
32,972
77,596
4,46,992
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
291
14
5,265
12
469
40,969
2,25,016
11,840
-
-
-
-
-
-
-
39,588
-
-
-
-
-
-
-
(3,554)
-
-
-
-
-
-
-
(728)
Other Comprehensive Income#
3,693
58,773
-
-
Total
2,87,584
98,361
(3,554)
(728)
# Includes net movement in Foreign Currency Translation Reserve.
-
-
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
As per our Report of even date
For and on behalf of the Board
For D T S & Associates LLP
Chartered Accountants
(Registration No.142412W/ W100595)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Alok Agarwal
Chief Financial Officer
Mumbai
Date: April 30, 2020
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Chairman and Managing Director
Executive Directors
Non-Executive Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P.K. Kapil
Nita M. Ambani
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K.V. Chowdary
328
329
Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewGovernance Corporate OverviewNotice CONSOLIDATEDFinancial Statements
Cash Flow Statement
For the year ended 31st March, 2020
A. CASH FLOW FROM OPERATING ACTIVITIES
NET PROFIT BEFORE TAX AS PER STATEMENT OF PROFIT AND LOSS
(AFTER EXCEPTIONAL ITEM AND TAX THEREON)
Adjusted for:
Share of (Profit) / Loss of Associates and Joint Ventures
Loss on Buy back of Debentures
(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) / Loss on Divestment of Stake
Net Gain on Financial Assets#
Tax on Exceptional Item
Dividend Income#
Interest Income#
Finance Costs#
Operating Profit before Working Capital Changes
Adjusted for:
Trade and Other Receivables
Inventories
Trade and Other Payables
Cash Generated from Operations
Taxes Paid (Net)
Net Cash Flow from Operating Activities*
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of 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 (including Advance Received)
Upfront Fibre Payment
Net Cash Flow for Other Financial Assets
Interest Income
Dividend Income from Associates
Dividend Income from Others
Net Cash Flow used in Investing Activities
# Other than Financial Services Segment.
* Includes amount spent in cash towards Corporate Social Responsibility is ` 1,022 crore. (Previous Year ` 904 crore).
2019-20
(` in crore)
2018-19
53,606
55,227
(107)
60
247
22,203
107
11
(2,076)
(948)
(110)
(10,317)
21,880
84,556
(9,804)
(6,342)
38,050
1,06,460
(8,386)
98,074
(76,517)
964
(11,59,270)
11,73,330
(16,439)
650
1,477
18
70
(75,717)
(103)
-
33
20,934
(1,319)
(20)
(2,471)
-
(501)
(4,952)
16,491
83,319
(40,136)
(6,724)
18,078
54,537
(12,191)
42,346
(93,626)
849
(11,05,479)
11,03,615
-
(1,960)
972
3
498
(95,128)
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Issue of Equity Share Capital
Proceeds from Issue of Share Capital to Non-Controlling Interest / Compulsory Convertible
Debentures
Share Application Money
Payment of Lease Liabilities
Proceeds from Borrowings – Non-Current
Repayment of Borrowings – Non-Current
Borrowings – 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)
2019-20
18
111
1
(1,062)
28,665
(18,179)
25,095
(1,370)
(2,720)
(4,592)
(28,508)
(2,541)
19,816
11,081
23
30,920
(` in crore)
2018-19
117
113
2
-
80,299
(20,245)
26,402
(870)
(2,292)
(4,282)
(23,338)
55,906
3,124
7,336
621
11,081
As per our Report of even date
For and on behalf of the Board
For D T S & Associates LLP
Chartered Accountants
(Registration No.142412W/ W100595)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Alok Agarwal
Chief Financial Officer
Mumbai
Date: April 30, 2020
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Chairman and Managing Director
Executive Directors
Non-Executive Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P.K. Kapil
Nita M. Ambani
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K.V. Chowdary
330
331
Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewGovernance Corporate OverviewNotice CONSOLIDATEDFinancial Statements
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, 2020.
The principal activities of the Group, its joint ventures and
associates consist of Refining, Petrochemicals, Oil and Gas,
Organised Retail, Digital Services and Financial Services.
Further details about the business operations of the Group are
provided in Note 35 – 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, 2019, Ind AS 116 – “Leases”
(Ind AS 116) supersedes Ind AS 17 – “Leases”. The Group
has adopted Ind AS 116 using the prospective approach.
The application of Ind AS 116 has resulted into recognition
of ‘Right of Use’ asset with a corresponding Lease Liability
in the Balance Sheet.
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.
(b)
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.
332
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
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, 2020 to
31st March, 2020 in respect of subsidiaries/joint
ventures/associates having financial year ended
31st December, 2019.
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.
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;
Held primarily for the purpose of trading;
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 transactions 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 fair value of 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.
(c) 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 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.
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Particular
Depreciation
Fixed Bed Catalyst (useful
life: 2 years or more)
Fixed Bed Catalyst (useful
life: up to 2 years)
Premium on Leasehold
Land (range upto 99 years)
Plant and Machinery
(25 to 40 years)
Over its useful life as
technically assessed
100% depreciated in the
year of addition
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 Consolidated Statement of Profit and Loss
when the asset is derecognised.
(d) Leases
The Group, as a lessee, recognises a right-of-use
asset and a lease liability for its leasing arrangements,
if the contract conveys the right to control the use of
an identified asset.
The contract conveys the right to control the use
of an identified asset, if it involves the use of an
identified asset and the Group has substantially all
of the economic benefits from use of the asset and
has right to direct the use of the identified asset.
The cost of the right-of-use asset shall comprise of
the amount of the initial measurement of the lease
liability adjusted for any lease payments made at
or before the commencement date plus any initial
direct costs incurred. The right-of-use assets is
subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any
and adjusted for any remeasurement of the lease
liability. The right-of-use asset is depreciated using
the straight-line method from the commencement
date over the shorter of lease term or useful life of
right-of-use asset.
The Group measures the lease liability at the
present value of the lease payments that are not
paid at the commencement date of the lease. The
lease payments are discounted using the interest
rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined,
the Group uses incremental borrowing rate.
For short-term and low value leases, the Group
recognises the lease payments as an operating
expense on a straight-line basis over the lease term.
The Group, as a lessor, classifies a lease either as
an operating lease or a finance lease. Leases are
classified as finance lease 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.
(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:
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 as and when incurred.
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
Consolidated 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.
All other borrowing costs are charged to the
Consolidated Statement of Profit and Loss for the
period for which they are incurred.
(i) Inventories
Items of inventories are measured at lower of
cost and net realisable value after providing for
obsolescence, if any, except in case of by-products
which are valued at net realisable value. Cost of
inventories comprises of cost of purchase, cost of
conversion and other costs including manufacturing
overheads net of recoverable taxes incurred
in bringing them to their respective present
location and condition.
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.
(h) Finance Costs
(j) Impairment of Non-Financial Assets —
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.
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.
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An impairment loss is recognised in the Consolidated
Statement of Profit and Loss to the extent, asset’s
carrying amount exceeds its recoverable amount. The
recoverable amount is higher of an asset’s fair value
less cost of disposal and value in use. Value in use is
based on the estimated future cash flows, discounted
to their present value using pre-tax discount rate that
reflects current market assessments of the time value
of money and risk specific to the assets.
The impairment loss recognised in prior accounting
period is reversed if there has been a change in the
estimate of recoverable amount.
(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) Contingent Liability
Disclosure of contingent liability is made when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Group or a present obligation that arises from
past events where it is either not probable that an
outflow of resources embodying economic benefits
will be required to settle or a reliable estimate of
amount cannot be made.
(m) Employee Benefits Expense
Short-Term Employee Benefits
The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the
336
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. 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 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.
Remeasurement gains and losses arising from
adjustments and changes in actuarial assumptions
are recognised in the period in which they occur, in
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.
(n) 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. In which case, the tax
is also recognised in Other Comprehensive Income.
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
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.
(o) Share Based Payments
Equity-settled share based payments to employees
and others providing similar services are measured
at the fair value of the equity instruments at the grant
date. Details regarding the determination of the
fair value of equity-settled share based payments
transactions are set out in Note 26.2.
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.
(p) 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.
(q) 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
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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 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.
(r) 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)
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.
b)
Financial Assets measured at Fair
Value Through Other Comprehensive
Income (FVTOCI)
A financial asset is measured at
FVTOCI if it is held within a business
model whose objective is achieved by
both collecting contractual cash flows
and selling financial assets and the
contractual terms of the financial asset
give rise on specified dates to cash
flows that 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.
338
C. Other Equity Investments
All other equity investments are measured
at fair value, with value changes recognised
in Consolidated Statement of Profit and
Loss, except for those equity investments
for which the Group has elected to present
the value changes in ‘Other Comprehensive
Income’. However, dividend on such equity
investments is 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.
For trade and other payables maturing
within one year from the balance sheet
date, the carrying amounts approximate
fair value due to the short maturity of
these instruments.
iii. Derivative Financial Instruments and
Hedge Accounting
The Group uses various derivative financial
instruments such as interest rate swaps,
currency swaps, forwards and options and
commodity contracts to mitigate the risk of
changes in interest rates, exchange rates and
commodity prices. 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 asset 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 the derivative is
339
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
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.
(s) 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.
Non-current assets held for sale are neither
depreciated nor amortised.
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.
(t) 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 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.
(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.
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 31.2.
(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) PROPERTY PLANT AND EQUIPMENT/OTHER
INTANGIBLE ASSETS
Estimates are involved in determining the cost attributable
to bringing the assets to the location and condition
necessary for it to be capable of operating in the manner
intended by the management. 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.
(D) RECOVERABILITY OF TRADE RECEIVABLES
Judgements are required in assessing the recoverability
of overdue trade receivables and determining whether a
provision against those receivables is required. Factors
considered include the credit rating of the counterparty,
the amount and timing of anticipated future payments and
any possible actions that can be taken to mitigate the risk
of non-payment.
(E) PROVISIONS
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.
340
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Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
(F) IMPAIRMENT OF FINANCIAL AND
(J) GLOBAL HEALTH PANDEMIC ON COVID-19
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, 2020, the Group has determined that there is no
impairment towards these assets.
(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 34 of financial statements.
(I) REVENUE
The application of Accounting Standard on Revenue
Recognition for digital segment involves complexity and
use of key judgements with respect to multiple elements
deliverables, timing of revenue recognition, accounting of
discounts, incentives, etc. The Management has reviewed
such accounting treatment and is satisfied about its
appropriateness in terms of the relevant Ind AS.
AND FALL IN CRUDE PRICE
The outbreak of Coronavirus (COVID-19) pandemic
globally and in India is causing significant disturbance
and slowdown of economic activity. In many countries,
businesses are being forced to cease or limit their
operations for long or indefinite periods of time. Measures
taken to contain the spread of the virus, including travel
bans, quarantines, social distancing, and closures
of non-essential services have triggered significant
disruptions to businesses worldwide, resulting in an
economic slowdown.
COVID-19 is significantly impacting business operation
of the companies, by way of interruption in production,
supply chain disruption, unavailability of personnel,
closure/lockdown of production facilities etc. On
24th March, 2020, the Government of India ordered
a nationwide lockdown for 21 days which further got
extended till 3rd May, 2020 to prevent community spread
of COVID-19 in India resulting in significant reduction in
economic activities. Further, during March 2020/April
2020, there has been significant volatility in oil prices,
resulting in uncertainty and reduction in oil prices.
In assessing the recoverability of Group assets such as
Investments, Loans, Intangible assets, Goodwill, Trade
receivable etc. the Group has considered internal and
external information. The Group has performed sensitivity
analysis on the assumptions used basis the internal
and external information/indicators of future economic
conditions, the Group expects to recover the carrying
amount of the assets.
(K) LEASES
The Group evaluates if an arrangement qualifies to be a
lease as per the requirements of Ind AS 116. Identification
of a lease requires significant judgement. The Group
uses judgement in assessing whether a contract (or part
of contract) include a lease, the lease team (including
anticipated renewals), the applicable discount rate,
variable lease payments whether are in-substance fixed.
The judgement involves assessment of whether the
asset included in the contract is a fully or partly identified
asset based on the facts and circumstances, whether the
contract include a lease and non-lease component and if
so, separation thereof for the purpose of recognition and
measurement, determination of lease term basis,
inter alia the non-cancellable period of lease and whether
the lessee intends to opt for continuing with the use of
the asset upon the expiry thereof, and whether the lease
payments are fixed are variable or a combination of both.
1. PROPERTY, PLANT AND EQUIPMENT, OTHER INTANGIBLE ASSETS, CAPITAL WORK-IN-PROGRESS AND INTANGIBLE
ASSETS UNDER DEVELOPMENT
Gross Block
Depreciation/Amortisation and Depletion
Net Block
As at
01-04-2019
Additions/
Adjustments^
Deductions/
Adjustments
As at
31-03-2020
As at
01-04-2019
For the
Year #
Deductions/
Adjustments
As at
31-03-2020
As at
31-03-2020
As at
31-03-2019
(` in crore)
49,371
27,672
3,18,853
10,175
9,019
2,623
697
417
543
4,19,370
18,683
-
318
-
10
19,011
4,38,381
5,406
58,139
8,294
69,362
4,943
1,46,144
5,84,525
482
4,551
1,26,104
5,291
4,503
899
77
90
90
1,42,087
210
2,225
7,446
57
-
9,938
1,52,025
535
2,768
1,460
2,081
992
7,836
1,59,861
3
51
3,447
308
333
162
55
5
-
4,364
-
17
-
(2)
-
15
4,379
49,850
32,172
4,41,510
15,158
13,189
3,360
719
502
633
5,57,093
18,893
2,208
7,764
59
10
28,934
5,86,027
-
7,978
1,15,008
4,716
3,947
1,136
524
322
348
1,33,979
1,970
-
307
-
10
2,287
1,36,266
-
1,380
11,108
864
1,143
346
69
12
78
15,000
310
300
1,189
14
-
1,813
16,813
(20)
-
273
6,201
24
6,478
10,857
5,961
60,907
9,481
65,242
5,911
1,47,502
7,33,529
245
3,756
2,485
2,919
1,045
2,613
1,740
51,165
341
1,429
61,882
5,856
1,98,148 22,669
-
23
2,141
297
314
131
52
5
-
2,963
-
1
8
-
-
9
2,972
(20)
-
232
6,472
31
6,715
9,687
-
9,335
1,23,975
5,283
4,776
1,351
541
329
426
1,46,016
2,280
299
1,488
14
10
4,091
1,50,107
4,021
5,404
3,426
46,433
1,739
61,023
2,11,130
5,75,471
74,395
65,341
5,84,525
1,77,399 24,290
3,541
1,98,148
49,850
22,837
3,17,535
9,875
8,413
2,009
178
173
207
4,11,077
16,613
1,909
6,276
45
-
24,843
4,35,920
1,940
55,503
6,055
18,809
4,172
86,479
5,22,399
3,86,377
59,096
49,371
19,694
2,03,845
5,459
5,072
1,487
173
95
195
2,85,391
16,713
-
11
-
-
16,724
3,02,115
1,650
55,220
5,681
18,197
3,514
84,262
3,86,377
1,50,178
50,010
29,285
Description
PROPERTY, PLANT
AND EQUIPMENT
Own Assets:
Land
Buildings
Plant and Machinery
Electrical Installations
Equipments$
Furniture and Fixtures
Vehicles
Ships
Aircrafts and Helicopters
Sub-Total
Right-of-Use Assets:
Land
Buildings
Plant and Machinery
Vehicles
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
$ Includes Office Equipments.
* Other than internally generated.
# Depreciation/Amortisation and Depletion for the year includes depreciation of ` 86 crore (Previous Year ` 160 crore) capitalised during the year and ` 437
crore on account of entities acquired during the year 2019-20 and excludes ` 57 crore on account of Divestment of Stake in relation to Asset Held for Sale
pertaining to 2018-19. Thus, ` 22,203 crore has been considered in the Statement of Profit and Loss.
^ Additions/adjustments in gross block for the year include ` 1,744 crore on account of entities acquired during the year 2019-20.
1.1
Right of Use (Land) includes ` 83 crore (Previous Year ` 89 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 ` 2,03,700).
ii)
` 135 crore (Previous Year ` 135 crore) in shares of Companies / Societies with right to hold and use certain area of Buildings.
342
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Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
1.3 Other Intangible Assets – Others includes:
i)
ii)
Jetties amounting to ` 812 crore (Previous Year ` 812 crore), the ownership of which vests with Gujarat Maritime Board.
Particulars
` 7 crore (Previous Year ` 7 crore) in shares of companies with Right to hold and use Land and Buildings.
1.4 Capital Work-in-Progress and Intangible Assets Under Development includes:
i)
ii)
` 15,684 crore (Previous Year ` 34,473 crore) on account of Project Development Expenditure.
` 9,168 crore (Previous Year ` 18,750 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 ` 6,255 crore (net loss) [Previous Year ` 5,117 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
1.8
The Company has adopted Ind AS 116 ‘Leases’ effective April 1, 2019 and applied the Standard to its leases, pursuant to which it has
reclassified its leased asset as Right-of-Use Assets. Further, additions include recognition of leasing arrangement as Right-of-use
Assets as at April 1, 2019. The impact on the profit for the year is not material.
During the year, pursuant to a scheme of arrangement sanctioned by the National Company Law Tribunal, Reliance Corporate IT Park
Limited (“RCITPL”), a wholly-owned subsidiary of the Company has reclassified its development rights in leasehold land to “Intangible
Assets under Development”. In terms of the scheme, RCITPL has accounted the fair valuation impact of “Intangible Assets under
Development” aggregating to ` 38 crore in the retained earnings, overriding the provisions of Ind AS in accordance with the current
accounting guidelines. Same accounting treatment has been followed in consolidated financial statements.
Particulars
2 INVESTMENTS – NON-CURRENT
INVESTMENT IN ASSOCIATES
A.
Investments measured at Cost (accounted using Equity Method)
In Equity Shares – Quoted, Fully paid up
GTPL Hathway Limited of ` 10 each
Reliance Industrial Infrastructure Limited of ` 10 each
In Equity Shares – Unquoted, Fully paid up
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 [` 27,97,720;
(Previous Year ` 28,35,517)]
Gujarat Chemical Port Limited of ` 1 each (Formerly known as Gujarat
Chemical Port Terminal Company Limited)
Hathway VCN Cablenet Private Limited of ` 10 each
Indian Vaccines Corporation Limited of ` 10 each [` 18,50,655;
(Previous Year ` 34,48,495)]
Jamnagar Utilities & Power Private Limited Class A shares of ` 1 each
[` 40,72,000 ; (Previous Year ` 40,72,000)]
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
344
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
4,26,97,825
68,60,064
17,04,279
20,40,000
35,93,552
19,38,000
50,295
60,94,190
3,23,000
380
190
570
-
-
23
3
66
375
-
4,70,10,528
68,60,064
17,04,279
20,40,000
35,93,552
19,38,000
50,295
60,94,190
3,23,000
391
188
579
-
-
22
4
64
335
-
64,29,20,000
430
64,29,20,000
329
12,520
62,63,125
52,32,000
92,62,233
10
11,08,500
-
-
-
-
-
39
12,520
62,63,125
52,32,000
92,62,233
10
11,08,500
-
-
-
-
-
37
Reliance Services and Holdings Limited of ` 10 each
(Formerly known as Naroda Power Private Limited)
Television Home Shopping Network Limited of ` 10 each
(Formerly known as TV18 Home Shopping Network Limited)
Vadodara Enviro Channel Limited of ` 10 Each [` 1,43,020 ]
Vay Network Services Private Limited of ` 2 each
[` Nil (Previous Year ` 39,14,826)]
In Preference Shares – Unquoted, Fully paid up
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
Reliance Services and Holdings Limited – 6% Non-Cumulative Redeemable
Preference Shares of ` 1,000 each (Refer Note 13.7)
(Formerly known as Naroda Power Private Limited)
Television Home Shopping Network Limited – Compulsory Convertible
Preference Shares of ₹ 100 each (Formerly known as TV18 Home Shopping
Network Limited)
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
50,000
-
14,302
19,57,413
1,156
2,31,200
1,807
3,61,400
-
-
-
-
936
-
-
17
-
-
7,67,196
-
19,57,413
1,156
2,31,200
1,807
3,61,400
-
-
-
-
791
-
-
98
-
3,41,857
278
3,41,857
278
17,64,66,916
16,175
-
-
-
-
5,53,285
40
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
12,75,367
In Debentures - Unquoted, Fully paid up
Ashwani Commercials Private Limited - Zero Coupon Unsecured Optionally
Fully Convertible Debentures of ` 10 each
Reliance Services and Holdings Limited – Zero Coupon Unsecured Optionally
Fully Convertible Debentures of ` 10 each
(Formerly known as Naroda Power Private Limited)
13,55,90,000
9,97,50,000
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
In Limited Liability Partnership
GenNext Ventures Investment Advisers LLP [` 25,60,426;
(Previous Year ` 26,72,980)]
In Corpus of Trust
Unquoted
Investment in Corpus of Petroleum Trust (Refer Note 13.7)
A. Total Investments in Associates
12,75,367
13,55,90,000
-
24,18,393
16,470
-
-
136
100
236
-
-
-
-
27,119
27,119
45,331
416
-
-
136
-
136
-
-
-
-
-
-
1,922
345
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Particulars
B.
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
Ethane Crystal LLC Class A Share
Ethane Emerald LLC Class A Share
Ethane Opal LLC Class A Share
Ethane Pearl LLC Class A Share
Ethane Sapphire LLC Class A Share
Ethane Topaz LLC Class A Share
Ethane Crystal LLC Class C Share
Ethane Emerald LLC Class C Share
Ethane Opal LLC Class C Share
Ethane Pearl LLC Class C Share
Ethane Sapphire LLC Class C Share
Ethane Topaz LLC Class C Share
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
[` 33,14,237 ; (Previous Year ` 31,19,917)]
Hathway Cable MCN Nanded Private Limited of ` 10 each
[` 45,86,231 ; (Previous Year ` 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 & Datacom Private Limited of ` 10 each
Hathway Ice Television Private Limited of ` 10 each
Hathway Latur MCN Cable & 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
[` Nil; (Previous Year ` 18,83,237)]
Hathway Prime Cable & 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 Solutions 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)
Marks and Spencer Reliance India Private Limited (Class C Shares of ` 5 each)
Net 9 Online Hathway Private Limited of ` 10 each
346
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
Particulars
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
2,45,00,000
2,23,22,952
1,22,50,000
1,07,00,000
5,65,95,000
84,933
80,046
79,914
85,280
79,914
79,914
1,97,48,739
1,86,12,443
1,85,81,663
1,98,29,430
1,85,81,663
1,85,81,663
10,80,141
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
1,50,00,000
16,24,00,000
81,42,722
9,51,16,546
5,000
15
33
15
1
17
1
1
1
1
1
1
196
188
177
187
175
176
41
-
-
-
1
4
7
-
-
-
-
-
5
11
1
-
-
-
39
157
6
152
49
194
3
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
9,51,16,546
5,000
14
29
14
2
14
-
-
-
-
-
-
-
-
-
-
-
-
5
-
-
-
1
4
6
-
-
-
-
-
4
10
-
-
-
-
46
150
8
151
49
191
3
Pipeline Management Services Private Limited of ` 10 each
(Formerly known as Rutvi Project Managers Private Limited)
Reliance Bally India Private Limited of ` 10 each
Reliance Paul & Shark Fashions Private Limited of ` 10 each
Reliance Sideways Private Limited of ` 10 each
Reliance-Grand Vision India Supply Private Limited of ` 10 each
Reliance-Vision Express Private Limited of ` 10 each
Ryohin-Keikaku Reliance India Private Limited of ` 10 each
Supreme Tradelinks Private Limited of ` 10 each
TCO Reliance India 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
In Limited Liability Partnership
Hathway SS Cable & Datacom LLP
B. Total Investments in Joint Ventures
C. OTHER INVESTMENTS
Investment measured at Amortised Cost
In Government Securities – Unquoted
6 Years National Savings Certificate (Deposited with Sales Tax Department
and Other Government Authorities) [` 45,08,847; (Previous Year ` 45,02,837)]
In Debentures or Bonds – Unquoted, Fully paid up
Jio Digital Fibre Private Limited – 9% Non-convertible Debentures of
` 10,00,000 each
Reliance Jio Infratel Private Limited – 9% Non-convertible Debentures of
` 10,00,000 each
Yes Bank Limited – Unsecured Redeemable Non-Convertible,
Upper Tier II Bonds of ` 10,00,000 each
In Others
Pass Through Certificates
Digital Fibre Infrastructure Trust
Tower Infrastructure Trust
5,00,000
2
5,00,000
36,00,000
1,08,50,000
-
1,35,00,000
9,20,00,000
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
48,50,000
1,21,00,000
5,000
1,35,00,000
9,70,00,000
2,48,92,000
-
1,37,20,000
10,821
87,45,000
2,98,44,272
2,20,000
2,49,999
1
20,35,250
4
5
-
5
6
17
-
14
5
7
5
1,926
-
5
-
9
14
-
-
1,940
-
-
1
4
5
-
6
10
12
3
-
5
8
2
757
-
5
-
10
15
-
-
772
-
-
2,53,420
27,394
4,53,420
45,342
1,18,360
12,795
1,18,360
11,836
30
3
30
3
40,192
3,126
26
12
3,164
57,181
-
-
-
-
347
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview 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 AUD 0.1636 each
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 [` 8,06,324; (Previous Year
` 13,75,493)]
Refex Industries Limited of ` 10 each
SMC Global Securities Limited of ` 2 each
Yatra Online Inc. of USD 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;
(Previous Year ` 1,00,000)]
24x7 Learning Private Limited of ` 10 each
DSE Estates Limited of ` 1 each
(Formerly known as Delhi Stock Exchange Association Limited )
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 USD 0.001 each
Yatra Online Private Limited of ` 10 each
In Convertible Warrants, Partly paid up
Infibeam Avenues Limited - Convertible warrant of ` 186.48 on which ` 46.62
paid per warrant (Formerly known as Infibeam Incorporation Limited)
In Preferred Shares – Unquoted, Fully paid up
EdCast Inc. – Series B
KaiOS Technologies Inc (KTI) – Series A
Netradyne Inc. – Series A
Skytran Inc.
348
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
Particulars
16
16
103
103
2
95
697
39
44
-
1
7
13
898
-
-
-
-
-
14
3
46
-
-
-
-
39
4
106
-
-
5
36
276
39
356
5
5
50
50
2
207
2,181
197
109
-
1
6
56
2,759
-
-
-
-
80
12
3
46
-
-
-
-
35
16
192
-
-
5
36
276
23
340
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
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
5,87,158
19,26,397
10,000
1,00,000
6,45,558
8,98,500
400
2,019
71,175
19,04,781
3,01,876
1,00,00,000
19,99,990
27,500
39,894
1,09,348
-
2,34,302
6,25,000
1,91,34,355
48,29,651
In Preference Shares – Unquoted, Fully paid up
Aeon Learning Private Limited – Series B Compulsorily Convertible
Preference Shares of ` 1 each
Jio Digital Fibre Private Limited – 10% Optionally Convertible Preference
Shares of ` 10 each
Jio Digital Fibre Private Limited – 10% Cumulative Redeemable Preference
Shares of ` 10 each
Karexpert Technologies Private Limited – Series A Preference Shares of ` 20
each
Karexpert Technologies Private Limited – Series B 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
Reliance Jio Infratel Private Limited – 10% Optionally Convertible 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
Teesta Retail Private Limited – Unsecured Zero Coupon Optionally Fully
Convertible Debentures of ` 10 each
In Debentures or Bonds – Quoted, Fully paid up*
In Fixed Maturity Plan – Quoted, Fully paid up#
In Government Securities – Quoted*
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 Preference Shares – Unquoted, Fully paid up
In Debentures or Bonds – Quoted, Fully paid up
In Others
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 [` 2,15,090 ]
IIFL Special Opportunities Fund Class A 5.1 of ` 10 each
JM Financial Property Fund – I of ` 3,721 each (Previous Year ` 3,721 each)
JMFRAC – Securities Receipt
JMFARC – MARCH 2018 – Trust – Series I of ` 1,000 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, ` 3,762 paid up
(Previous Year ` 3,857 paid up)
* Include ` 11,448 crore (Previous Year ` 327 crore) given as collateral security (Refer Note 19).
# Refer Note 34 C.
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
2
-
2
-
77,70,11,98,375
77,701
77,70,11,98,375
77,701
12,50,000
22,222
33,332
1
10
15
12,50,000
22,222
-
1
10
-
4,00,00,00,000
4,000
4,00,00,00,000
4,000
5,00,00,000
5,00,00,000
50
50
5,00,00,000
-
50
-
2,025
466
2,025
466
82,293
82,228
2,50,000
-
25
-
2,50,000
3,00,00,000
25
1,539
11,070
14,263
-
-
250
606
-
250
814
103
76
-
44
4
34
80
2
1
10
15,02,630
1,98,38,351
88,880
4,95,06,919
50,000
3,40,000
8,00,000
2,53,314
1,16,000
25,000
18,28,287
6,08,31,760
88,880
4,95,06,919
50,000
-
-
7,39,556
1,16,000
25,000
25
30
55
2,161
10,148
-
44
44
2,516
879
10
-
2,731
183
76
1
51
7
-
-
51
1
11
349
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Particulars
As at 31st March, 2020
As at 31st March, 2019
Units
Amount
Units
Amount
(` in crore)
Multiples Private Equity Fund - Scheme 1 of ` 1,00,000 each, ` 22,437 paid up
(Previous Year ` 40,846 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 ` 27,930 each
(Previous Year ` 29,930 each)
3one4 Capital Fund Scheme II of ` 1,00,000 each, ` 85,000 paid up
(Previous Year ` 55,000 paid up)
5,000
9,45,361
44,27,780
21,600
2,000
31
137
63
26
25
5,000
8,46,056
29,29,919
21,600
2,000
C. Total Other Investments
Total Investments – Non-Current (A+B+C)
636
1,56,581
2,03,852
51
109
44
23
11
619
1,61,918
1,64,612
2.1 CATEGORY-WISE INVESTMENTS – NON-CURRENT
Financial Assets measured at Cost (accounted using Equity Method)
Financial Assets measured at Amortised Cost
Financial Assets measured at Fair Value Through Other Comprehensive Income
Financial Assets measured at Fair Value Through Profit and Loss
Total Investments – Non-Current
3 LOANS – NON-CURRENT (UNSECURED AND CONSIDERED GOOD)
Deposits with Related Parties (Refer Note 30(IV))
Other Loans and Advances *
Total
* Include primarily Consumer Device Financing and fair valuation of interest free deposits.
4 DEFERRED TAX
COMPONENT OF DEFERRED TAX
Deferred Tax Assets (Net)
Deferred Tax Liabilities (Net)
Net Deferred Tax Assets/(Liabilities)
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
47,271
43,356
1,10,669
2,556
2,03,852
2,694
57,181
97,982
6,755
1,64,612
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
542
21,190
21,732
583
4,869
5,452
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
2,900
54,123
(51,223)
4,776
49,923
(45,147)
350
As at
31st March,
2019
(Charge)/Credit
to Statement of
Profit and Loss
(Charge)/Credit
to Other
Comprehensive
Income
Others
(Including
Exchange
Difference)
DEFERRED TAX ASSETS (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 Assets (Net)
DEFERRED TAX LIABILITIES (NET) IN RELATION TO:
Property, Plant and Equipment and Other Intangible Assets
Financial Assets and Others
Loan and Advances
Provisions
Disallowances
Carried Forward Losses
Others
Deferred Tax Liabilities (Net)
(11,347)
-
-
47
75
24,162
(8,161)
4,776
34,655
17,024
(34)
(918)
(9)
(57)
(738)
49,923
(2,180)
1,649
1
184
(16)
(907)
(701)
(1,970)
3,519
(1,626)
6
513
-
32
682
3,126
-
-
-
-
-
-
49
49
-
1,026
-
-
-
-
-
1,026
13
1
-
1
1
637
(608)
45
104
-
-
(7)
(1)
(8)
(40)
48
(` in crore)
As at
31st March,
2020
(13,514)
1,650
1
232
60
23,892
(9,421)
2,900
38,278
16,424
(28)
(412)
(10)
(33)
(96)
54,123
Net Deferred Tax Assets/(Liabilities)
(45,147)
(5,096)
(977)
(3)
(51,223)
5 OTHER NON-CURRENT ASSETS (UNSECURED AND CONSIDERED GOOD)
Capital Advances
Security Deposits*
Advance Income Tax (Net of Provision)#
Upfront Fibre payment
Others^
Total
* Include Deposits of ` 468 crore (Previous Year ` 465 crore) given to Related Parties (Refer Note 30(IV)).
# Refer Note 12.
^ Include ` 295 crore (Previous Year ` 295 crore) deposited in Gas pool account (Refer Note 31.4 (b)).
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
5,724
3,234
5,612
15,570
7,267
37,407
3,858
1,921
3,420
-
8,477
17,676
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
6
INVENTORIES
Raw Materials (Including Material in Transit)
Work-in-Progress**
Finished Goods
Stores and Spares
Stock-in-Trade
Others
Total
15,312
21,617
12,890
11,723
10,261
2,100
73,903
** Includes Land, Development Cost and on transfer on completion of Projects of ` 12,362 crore (Previous Year ` 7,410 crore).
19,993
13,312
15,228
5,124
12,001
1,903
67,561
351
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
7
INVESTMENTS – CURRENT
INVESTMENT 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*
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 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 34 C.
# Include ` 11,690 (Previous Year ` 13,384 crore) given as collateral security. (Refer Note 19).
7.1 CATEGORY-WISE INVESTMENTS – CURRENT
Financial Assets measured at Fair Value Through Other Comprehensive Income
Financial Assets measured at Fair Value Through Profit and Loss
Total Investments – Current
8
TRADE RECEIVABLES (UNSECURED AND CONSIDERED GOOD)
Trade Receivables
Total
9 CASH AND CASH EQUIVALENTS
Cash on Hand
Balances with Banks^
Others – Deposits/Advances
Cash and Cash Equivalents as per Balance Sheet
Cash and Cash Equivalents as per Cash Flow Statement
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
-
2,720
38,450
41,170
3,442
-
14,809
82
10,869
-
-
-
-
2,543
31,745
72,915
3,358
8
23,909
27,275
7,384
2,216
12,894
84
-
373
105
50
11,478
9,164
43,748
71,023
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
41,170
31,745
72,915
27,275
43,748
71,023
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
19,656
19,656
30,089
30,089
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
77
19,685
11,158
30,920
30,920
188
7,389
3,504
11,081
11,081
^ Include Unclaimed Dividend of ` 220 crore (Previous Year ` 235 crore), Fixed Deposits of ` 529 crore (Previous Year ` 339 crore) with maturity of more
than 12 months and Fixed Deposits of ` 4,897 crore (Previous Year ` 3,447 crore) are given as collateral securities. These deposits can be withdrawn by the
Company at any point of time without prior notice or penalty on the principal.
352
10 OTHER FINANCIAL ASSETS – CURRENT
Deposits*
Others#
Total
* Include Deposits of ` 17 crore (Previous Year ` 17 crore) given to Related Parties (Refer Note 30(IV)).
# Mainly includes fair valuation of derivatives.
11 OTHER CURRENT ASSETS (UNSECURED AND CONSIDERED GOOD)
Balance with Customs, Central Excise, GST and State Authorities
Others^
Total
^ Includes prepaid expenses, deposits and claims receivable.
12 TAXATION
INCOME TAX RECOGNISED IN STATEMENT OF PROFIT AND LOSS
Current Tax
Deferred Tax
Total Income Tax Expenses
The income tax expenses for the year can be reconciled to the accounting profit as follows:
Profit Before Tax (Before Exceptional Item)
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
Tax on Exceptional Item
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
8,428
19,006
27,434
4,693
5,590
10,283
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
24,856
7,907
32,763
21,109
15,695
36,804
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
8,630
5,096
13,726
11,683
3,707
15,390
As at
31st March, 2020
58,050
34.944%
20,285
(` in crore)
As at
31st March, 2019
55,227
34.944%
19,299
(3,118)
4,362
(10,455)
(516)
(1,984)
56
8,630
5,699
(603)
5,096
13,726
23.65%
(948)
(3,191)
4,583
(7,736)
709
(1,973)
(8)
11,683
8,295
(4,588)
3,707
15,390
27.87%
-
353
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
13.1
13.2
2,95,98,63,235
(2,95,98,63,235)
41,31,68,826
(3,44,000)
Shares held by Associates (Refer Note 13.7).
Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium Reserve and
Capital Redemption Reserve.
Less: Pursuant to Scheme of Arrangement (Refer Note 13.7)
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 and exceptional item.
# Refer Note 5 and Note 22.
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
Total
ISSUED, SUBSCRIBED AND PAID UP:
6,33,92,67,510
(5,92,58,68,997)
Equity Shares of ` 10 each, fully paid up
Total
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
3,346
(8,630)
2,474
8,386
5,576
2,638
(11,683)
200
12,191
3,346
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
14,000
1,000
15,000
6,339
6,339
14,000
1,000
15,000
5,926
5,926
Figures in brackets represent Previous Year figures.
13.3 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: Pursuant to Scheme of Arrangement (Refer Note 13.7)
Equity Shares at the end of the year
As at
31st March, 2020
As at
31st March, 2019
No. of Shares
No. of Shares
5,92,58,68,997
5,73,687
41,28,24,826
6,33,92,67,510
5,92,18,26,196
40,42,801
-
5,92,58,68,997
13.4 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. The Company has not granted any options under ESOS-2017.
13.5 RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO SHARES:
The Company has only one class of equity shares having face 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.
13.6 Issued, Subscribed and Paid Up Capital excludes Nil (Previous Year 41,28,24,826) equity shares directly or beneficially held by
subsidiaries/trust, which are consolidated in the Financial Statements.
354
13.7 Petroleum Trust holds 24.09 crore shares and 5 wholly-owned subsidiaries were holding 17.19 crore shares of the Company, both
aggregating to 41.28 crore shares. Petroleum Trust and the wholly-owned subsidiaries were hitherto being consolidated with
the financials of the Company and the Consolidated Financial Statements reflected the issued shares of the Company at 592.6
crore shares i.e. net of these 41.28 crore shares. Pursuant to a scheme of arrangement sanctioned by the National Company Law
Tribunal, Ahmedabad, the 5 wholly-owned subsidiaries of the Company have been amalgamated with Reliance Services and
Holdings Limited (“RSHL”), a company controlled by Petroleum Trust w.e.f. September 13, 2019. Pursuant to amendment to the
trust deed, Petroleum Trust has ceased to be under the control of the Company. Accordingly, Petroleum Trust and the 5 wholly-
owned subsidiaries are not being consolidated with the Company and the Consolidated Financial Statements reflect the issued
shares of the Company at 633.9 crore shares (same number as in the Standalone Financial Statements). However, as before, the
beneficial interest in all these shares continues to be with Reliance Industrial Investments and Holdings Limited, a wholly-owned
subsidiary of the Company. Both Petroleum Trust and RSHL are Associates as per Accounting Standard.
As at 31st March, 2020
As at 31st March, 2019
(` in crore)
14. OTHER EQUITY
SHARE APPLICATION MONEY PENDING ALLOTMENT
As per last Balance Sheet
Add: Application Money Received/Issue of Shares
CAPITAL RESERVE
As per last Balance Sheet
CAPITAL REDEMPTION RESERVE
As per last Balance Sheet
Add: Transferred from Retained Earnings
DEBENTURE REDEMPTION RESERVE
As per last Balance Sheet
Add: Transferred from Retained Earnings
SHARE BASED PAYMENTS RESERVE
As per last Balance Sheet
Add: On Employee Stock Options
STATUTORY RESERVE
As per last Balance Sheet
Add: Transferred from Retained Earnings
SECURITIES PREMIUM
As per last Balance Sheet
Add: Pursuant to Scheme of Arrangement/Others (Refer Note 13.7)
Add: On Employee Stock Options
SPECIAL ECONOMIC ZONE REINVESTMENT RESERVE
As per last Balance Sheet
Add: Transferred from Retained Earnings
GENERAL RESERVE
As per last Balance Sheet
Add: Transferred from Retained Earnings
2
(1)
14
40
54
4
9,412
15
7
11
484
77
41,164
20,207
24
-
5,500
2,55,016
-
1
291
2
291
15
(13)
14
-
14
-
50
14
5,265
4,147
9,427
9,412
18
561
12
(5)
469
15
40,969
63
132
7
484
61,395
41,164
-
-
5,500
-
2,25,016
30,000
2,55,016
2,55,016
355
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
(` in crore)
15.1 SECURED NON-CONVERTIBLE DEBENTURES REFERRED ABOVE TO THE EXTENT OF:
Instrument classified as equity
Zero Coupon Optionally Fully Convertible Unsecured
Debentures
As per last Balance Sheet
Add: Pursuant to Scheme of Arrangement (Refer Note 13.7)
Compulsory Convertible Debenture
As per last Balance Sheet
Issued & Paid Up during the Year
RETAINED EARNINGS
As per last Balance Sheet
Add: Profit for the year
Less: Pursuant to Scheme of Arrangement / Others (Refer Note 13.7)
Less: Appropriations
Transferred to Statutory Reserve
Transferred to General Reserve
Transferred to Debenture Redemption Reserve
Transferred to Capital Redemption Reserve
Transferred to Special Economic Zone Reinvestment Reserve
Dividend on Equity Shares [Dividend per Share ` 6.5
(Previous Year ` 6)]
Tax on Dividend
OTHER COMPREHENSIVE INCOME (OCI) *
As per last Balance Sheet
Add: Movement during the year
Less: Pursuant to Scheme of Arrangement / Others (Refer Note 13.7)
Total
* Includes net movement in Foreign Currency Translation Reserve.
As at 31st March, 2020
As at 31st March, 2019
-
4,126
4,126
-
39
39
12,330
39,354
8,496
43,188
77
-
15
40
5,500
3,852
732
62,466
15,311
181
4,165
32,972
77,596
4,46,992
-
-
-
-
11,840
39,588
654
50,774
15
30,000
4,147
-
-
3,554
728
3,693
58,773
-
-
-
12,330
62,466
3,81,186
a)
b)
` 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.
` 13,386 crore (Previous Year ` 17,500 crore) are secured by hypothecation of the movable properties, both present and
future, including movable plant and machinery, spares, tools and accessories, furniture, fixtures and vehicles of Reliance Jio
Infocomm Limited, subsidiary of the Company, save and except the telecom licenses, spectrum, brand name, goodwill and
any intellectual property rights and such of the assets that are procured through financing from Cisco Systems Capital India
Private Limited.
15.2 SECURED TERM LOANS FROM BANKS REFERRED ABOVE TO THE EXTENT OF:
a)
b)
` 3,278 crore (Previous Year ` 5,347 crore) are secured by way of mortgage/hypothecation of movable, immovable
properties and current assets.
` 3 crore (Previous Year ` 6 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)
` 62 crore (Previous Year ` 500 crore) 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%
8.25%
8.32%
8.70%
8.75%
Non-Current*
(` in crore)
Current*
2025-26
2024-25
2023-24
2022-23
2021-22
Total
2020-21
-
-
1,000
-
-
-
1,000
-
-
1,000
-
-
-
1,000
-
3,886
1,000
-
-
-
4,886
1,000
-
-
-
-
-
1,000
-
-
-
2,000
3,500
-
5,500
1,000
3,886
3,000
2,000
3,500
-
13,386
-
-
-
-
-
500
500
* Include ` 6 crore (Non-Current ` 4 crore and Current ` 2 crore) as Prepaid Finance Charges.
b) Unsecured:
Rate of Interest
Non-Current#
(` in crore)
Current#
14.1 Share Application Money Pending Allotment represents application money received on account of Employees Stock Option
2028-29
2024-25
2022-23
2021-22
Total
2020-21
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
356
As at 31st March, 2020
As at 31st March, 2019
Non-Current
Current
Non-Current
Current
(` in crore)
13,382
2,798
44
16,224
29,679
38,754
1,11,312
1,662
1,81,407
1,97,631
498
483
18
999
11,990
7,746
23,246
896
43,878
44,877
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
6.78%
6.80%
6.95%
7.00%
7.07%
7.17%
8.30%
8.65%
8.70%
9.00%
8.95%
9.05%
9.25%
-
-
-
-
-
-
-
2,415
1,000
-
2,655
3,143
-
9,213
-
-
-
-
-
-
-
-
-
1,000
-
-
2,500
3,500
-
-
-
5,000
-
5,000
-
-
-
-
-
-
-
10,000
-
-
-
-
-
-
7,000
-
-
-
-
-
-
7,000
-
-
-
5,000
-
5,000
7,000
2,415
1,000
1,000
2,655
3,143
2,500
29,713
# Include ₹ 44 crore (Non-Current ₹ 34 crore and Current ₹ 10 crore) as Prepaid Finance Charges.
2,500
2,500
2,500
-
2,500
-
-
-
-
-
2,000
-
-
12,000
357
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
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%
2096-
97
-
-
-
-
-
-
-
-
-
-
-
-
-
-
94
-
94
2040-
2044-
2046-
41
45
47
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,675
-
-
-
-
-
-
-
- 3,569
-
-
-
-
-
-
-
-
-
-
-
-
-
73
-
-
73 5,675 3,569
Non-Current *
2027-
2035-
28
36
-
-
-
-
-
-
-
-
- 6,053
-
-
-
-
-
-
-
1,513
-
-
-
-
38
-
-
-
-
-
-
-
-
-
1,513 6,091
2026-
27
-
-
-
-
-
-
-
-
-
-
-
-
257
167
-
-
424
2025-
26
147
144
163
170
-
-
-
-
-
-
-
-
-
-
-
-
624
2024-
25
147
144
163
170
-
7,567
-
-
-
-
-
-
-
-
-
-
8,191
2023-
24
147
144
163
170
-
-
-
-
-
-
-
-
-
-
-
-
624
2022-
23
147
144
163
170
-
-
-
-
-
-
-
-
-
-
-
-
2021-
22
147
144
164
171
-
-
-
-
-
10,708
-
-
-
-
-
-
624 11,334
(` in crore)
Current *
Total
2020-21
735
720
816
851
6,053
7,567
-
5,675
1,513
10,708
3,569
38
257
167
94
73
38,836
147
145
163
170
-
-
7,139
-
-
-
-
-
-
-
-
-
7,764
* Include ` 100 crore (Non-Current ` 82 crore and Current ` 18 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 ` 19 crore (Non-Current ` 16 crore and Current ` 3 crore) as Prepaid Finance Charges.
15.7 MATURITY PROFILE OF UNSECURED TERM LOANS ARE AS SET OUT BELOW:
Non-Current
Above
5 years
876
-
1-5 years
1,938
44
Total
2,814
44
Term Loans – from Banks^
Term Loans – from Others
Non-Current
Above 5 years
1-5 years
29,082
-
83,676
1,662
Total
1,12,758
1,662
^ Include ` 1,752 crore (Non-Current ` 1,446 crore and Current ` 306 crore) as Prepaid Finance Charges.
15.8 The Group has satisfied all the covenants prescribed in terms of borrowings.
(` in crore)
Current
1 year
486
18
(` in crore)
Current
1 year
23,552
896
16 OTHER FINANCIAL LIABILITIES - NON-CURRENT
Lease Liabilities
Others**
Total
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
7,516
11,288
18,804
-
10,020
10,020
** Include primarily Interest Accrued but not due on Deferred Payment Liabilities, Deposits and Creditors for Capital Expenditure.
358
17. DEFERRED PAYMENT LIABILITIES
UNSECURED
Payable to Department of Telecommunication ("DoT")
Total
As at 31st March, 2020
As at 31st March, 2019
Non-Current
Current
Non-Current
Current
(` in crore)
18,839
18,839
-
-
18,839
18,839
1,370
1,370
During the year ended 31st March, 2017, 2015 and 2014, Reliance Jio Infocomm Limited (RJIL) had won the auction for spectrum
aggregating to 580.3 MHz (DL+UL). RJIL had opted for deferred payment for a specified portion of the auction price. The deferred payment
liability recognised in the financial statements was payable in 16 annual instalments after a moratorium of two years. During the year,
RJIL opted for deferment of instalments due for the years 2020-2021 and 2021-2022, in response to such one-time option provided by
DoT, whereby, the revised instalments are payable only from FY 2022-2023, without any increase in the existing time period specified for
making the instalment payments.
18 PROVISIONS – NON-CURRENT
Provision for Annuities
Provision for Decommissioning of Assets*
Others
Total
As at
31st March, 2020
As at
31st March, 2019
17
1,771
2
1,790
20
2,832
4
2,856
* The movement in the provision is primarily towards (i) Utilisation for Tapti facilities, (ii) changes in the exchange rates (iii) Unwinding of discount and (iv) impact
of transfer of provision consequent to transfer of Panna Mukta to GOI nominee. Provision for Decommissioning of Assets is for Tapti, KGD6 and CBM Block.
As at 31st March, 2020
As at 31st March, 2019
(` in crore)
19 BORROWINGS – CURRENT
SECURED – AT AMORTISED COST
Working Capital Loans
From Banks
Foreign Currency Loans
Rupee Loans
From Others
Rupee Loans
UNSECURED – AT AMORTISED COST
Other Loans and Advances
From Banks
Foreign Currency Loans
Rupee Loans
Commercial Paper#
Loans from Related Parties (Refer Note 30(II))
Total
181
9,400
11,135
1,423
23
8,984
9,187
3,015
9,007
18,847
12,202
53,655
75
93,786
# Maximum amount outstanding at any time during the year was ` 83,642 crore (Previous Year ` 72,281 crore).
9,581
6,128
12,558
36,099
70
64,436
359
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
19.1 a)
Working Capital Loans from Banks of ` 5,580 crore (Previous Year ` 8,885 crore) are secured by Government Securities and
Bonds (Refer Note 7) and hypothecation 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)
` 3,427 crore (Previous Year ` 515 crore) are secured by way of first charge on all the Current Assets.
Working Capital Loans from Others of ` 18,847 crore (Previous Year ` 6,128 crore) are secured by Government Securities and
Bonds (Refer Note 2 and 7).
d)
Refer note 34 B (iv) for maturity profile.
e) The Group has satisfied all the covenants prescribed in terms of borrowings.
20 OTHER FINANCIAL LIABILITIES – CURRENT
Current maturities of Borrowings – Non-Current
Current maturities of Deferred Payment Liabilities (Refer Note 17)
Interest accrued but not due on Borrowings
Unclaimed Dividend *
Unclaimed/Unpaid matured deposits and interest accrued thereon
Lease Liabilities – Current
Other Payables#
Total
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
44,877
-
3,261
219
3
1,181
95,237
1,44,778
15,563
1,370
3,452
235
3
-
66,428
87,051
* Does not include any amount due and outstanding, to be credited to Investor Education and Protection Fund except ` 2 crore (Previous Year ` 2 crore) which
is held in abeyance due to legal cases pending.
# Include Creditors for Capital Expenditure, Security Deposit and Financial Liability at Fair Value.
21. OTHER CURRENT LIABILITIES
Contract Liabilities
Other Payables^
Total
^ Includes primarily statutory dues.
22 PROVISIONS – CURRENT
Provision for Employee Benefits (Refer Note 26.1) **
Provision for Income Tax (Net of Advance Tax)
Other Provisions@
Total
** Include annual leave and vested long service leave entitlement accrued.
@ Include primarily Provision for Customs Duty, Excise Duty on Finished Goods and Other Duties and Taxes.
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
64,690
10,973
75,663
41,338
11,563
52,901
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
968
36
886
1,890
687
74
565
1,326
360
23 REVENUE FROM OPERATIONS
DISAGGREGATED REVENUE
Refining
Petrochemicals
Oil and Gas
Organised Retail
Digital Services
Financial Services
Others
Total*
2019-20
3,09,081
1,16,829
2,666
1,41,187
11,270
758
29,854
6,11,645
(` in crore)
2018-19
3,06,154
1,39,259
4,384
1,15,257
3,896
250
13,894
5,83,094
* Include Income from Services; 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.
24 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 / (Loss)
PROFIT / (LOSS) ON DIVESTMENT
Total
2019-20
2018-19
(` in crore)
473
9,133
385
326
2,180
(104)
10,317
110
1,464
2,076
(11)
13,956
180
4,432
282
58
1,703
768
4,952
501
442
2,471
20
8,386
Above includes income from assets measured at Cost / Amortised cost ` 8,099 crore (Previous Year ` 1,983 crore), income from assets
measured at Fair value through Profit and Loss ` 377 crore (Previous Year ` 1,770 crore) and income from assets measured at Fair Value
Through Other Comprehensive Income ` 4,016 crore (Previous Year ` 4,191 crore).
24.1 OTHER COMPREHENSIVE INCOME – ITEMS THAT WILL NOT BE RECLASSIFIED
TO PROFIT AND LOSS
Remeasurement of Defined Benefit Plan
Equity Instruments through OCI
Total
2019-20
(176)
22,462
22,286
(` in crore)
2018-19
(9)
77,479
77,470
361
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
24.2 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
Government Securities
Foreign Currency Translation
Total
2019-20
(55)
256
166
(1,491)
(5,929)
152
(184)
(7,085)
(` in crore)
2018-19
(87)
(1,003)
186
70
3
-
(1,346)
(2,177)
(` in crore)
Defined Benefit Plan
I) Reconciliation of opening and closing balances of Defined Benefit Obligation
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
Gratuity (Funded)
Gratuity (Unfunded)
2019-20
2018-19
2019-20
2018-19
(` in crore)
1,161
(160)
99
85
134
(100)
1,219
1,040
44
108
84
(27)
(88)
1,161
85
172
57
13
34
(13)
348
37
27
23
5
(3)
(4)
85
* Includes benefits of ` 84 crore (Previous Year ` 1 crore) paid directly by Employer Entities.
2019-20
2018-19
II) Reconciliation of opening and closing balances of Fair Value of Plan Assets
25 CHANGES IN INVENTORIES OF FINISHED GOODS,
WORK-IN-PROGRESS AND STOCK-IN-TRADE
INVENTORIES (AT CLOSE)
Finished Goods / Stock-in-Trade
Work-in-Progress*
INVENTORIES (AT COMMENCEMENT)
Finished Goods / Stock-in-Trade
Work-in-Progress
Less: Capitalised during the year
Less: Exceptional Item (Refer Note 28.2)
Add: Opening Stock of Subsidiaries acquired during the year
Total
* Excludes on transfer on completion of Projects.
26 EMPLOYEE BENEFITS EXPENSE
Salaries and Wages
Contribution to Provident and Other Funds
Staff Welfare Expenses
Total
23,151
16,984
27,229
13,312
40,541
448
5,138
132
27,229
13,312
40,135
40,541
23,612
12,321
35,933
131
-
59
35,087
(5,048)
2019-20
12,160
794
1,121
14,075
35,861
(4,680)
(` in crore)
2018-19
10,854
657
977
12,488
26.1 AS PER INDIAN ACCOUNTING STANDARD 19 – “EMPLOYEE BENEFITS”, THE DISCLOSURES AS DEFINED ARE GIVEN BELOW:
Defined Contribution Plan
Contribution to Defined Contribution Plan, recognised as expense for the year is as under:
Employer’s Contribution to Provident Fund
Employer’s Contribution to Superannuation Fund
Employer’s Contribution to Pension Scheme
2019-20
355
25
181
(` in crore)
2018-19
333
14
173
362
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 crore)
Gratuity (Funded)
2019-20
2018-19
1,109
(155)
75
3
150
(16)
1,166
1,001
42
40
1
112
(87)
1,109
(` in crore)
Gratuity (Funded)
As at 31st March
Gratuity (Unfunded)
As at 31st March
2020
1,166
1,219
(53)
2019
1,109
1,161
(52)
2020
-
348
(348)
2019
-
85
(85)
(` in crore)
Gratuity (Funded)
Gratuity (Unfunded)
2019-20
2018-19
2019-20
2018-19
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
99
85
(86)
98
131
11
142
108
84
(80)
112
(28)
40
12
57
13
-
70
34
-
34
23
5
-
28
(3)
-
(3)
363
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
V)
Investment Details
Government of India Securities
Insurance Policies
Total
VI) Actuarial Assumptions
Mortality Table (IALM)
Discount Rate (per annum)
Expected Rate of Return on Plan Assets (per annum)
Rate of Escalation in Salary (per annum)
As at 31st March, 2020
As at 31st March, 2019
(` in crore)
% Invested
(` in crore)
% Invested
9
1,157
1,166
0.77
99.23
100.00
13
1,096
1,109
1.17
98.83
100.00
Gratuity (Funded)
2019-20
2006-08
(Ultimate)
7%
7%
4.00% p.a.
for the next
2 years, 6.00%
p.a. thereafter
2018-19
2006-08
(Ultimate)
8%
8%
6%
Gratuity (Unfunded)
2019-20
2006-08
(Ultimate)
7%
7%
4.00% p.a.
for the next
2 years, 6.00%
p.a. thereafter
2018-19
2006-08
(Ultimate)
8%
8%
6%
The estimates of Rate of Escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and
other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
The Expected Rate of Return on Plan Assets is determined considering several applicable factors, mainly the composition of Plan
Assets held, assessed risks, historical results of return on Plan Assets and the 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 2019-20.
VIII) These plan’s typically expose the Group to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk and
Salary Risk.
Investment Risk
Interest Risk
Longevity Risk
Salary Risk
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds.
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in
the return on the plan debt investments.
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants will
increase the plan’s liability.
The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As
such, an increase in the salary of the plan participants will increase the plan’s liability.
26.2 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 of Options Outstanding
As at 31st
March, 2020
As at 31st
March, 2019
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
1,63,136
2006-07
6,180
2008-09
1,69,316
Sub-Total
ii) Details of Employee Stock Options granted from 1st April, 2015 to 31st March, 2020
2015-16
2016-17
Sub-Total
2016-17 to 2019-20
2017-18 to 2020-21
2015-16
2015-16 & 2016-17
3,81,825
12,480
3,94,305
7,482
96,452
1,03,934
-
60,224
60,224
321.00
322.30
154.90
156.20 - 164.90
443.70
548.00
127.30-173.20
149.80-204.50
Total
2,29,540
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.
b) Compensation expenses arising on account of the Share Based Payments
Expenses arising from equity – settled share-based payment transactions
c) Fair Value on the grant date
Year ended
31st March, 2020
0.28
(` in crore)
Year ended
31st March, 2019
0.64
The fair value at grant date is determined using “Black Scholes Model” which takes into account the exercise price, term of the
option, share price at grant date and expected price volatility of the underlying shares, expected dividend yield and the risk free
interest rate for the term of the option.
The model inputs for options granted during the year ended March 31, 2017 included as mentioned below. Further no new stock
options were granted during FY 2019-20;
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)
g) Risk free interest rate: 7%
Expected dividend yield: 1.07%
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
As at 31st March, 2020
As at 31st March, 2019
364
Weighted average remaining contractual life of the share option outstanding at the end of year is 468 days (Previous Year 414 days).
Particulars
Balance at the beginning of the year
Exercised during the year
Expired / Lapsed during the year
Balance at the end of the year
Number of
share options
4,98,239
(2,67,439)
(1,260)
2,29,540
Weighted average
exercise price
366.82
355.21
321.00
380.59
7,86,812
(2,86,573)
(2,000)
4,98,239
Number of
share options
Weighted average
exercise price
380.08
403.58
321.00
366.82
365
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
27
FINANCE COSTS
Interest Expenses*
Interest on Lease Liabilities
Other Borrowing Costs
Applicable loss on foreign currency transactions and translation
Total
* Net of Interest Capitalised of ` 8,253 crore (Previous Year ` 11,254 crore).
28 OTHER EXPENSES
MANUFACTURING EXPENSES
Stores, Chemicals and Packing Materials
Electric Power, Fuel and Water
Labour Processing, Production Royalty and Machinery Hire Charges
Repairs to Building
Repairs to Machinery
Exchange Difference (Net)
Excise Duty#
Lease Rent
LAND DEVELOPMENT AND CONSTRUCTION EXPENDITURE
SELLING AND DISTRIBUTION EXPENSES
Warehousing and Distribution Expenses
Sales Tax / VAT
Other Selling and Distribution Expenses
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
2019-20
19,828
33
74
2,092
22,027
(` in crore)
2018-19
15,247
-
267
981
16,495
(` in crore)
2019-20
2018-19
28,243
117
13,811
23,993
162
12,966
5,680
15,098
688
463
1,446
253
189
176
7,516
856
4,594
1,154
16,919
5,616
5,784
9,801
2,418
5,793
1,142
1,208
2,377
788
55
257
1,181
6,819
17,029
1,022
307
1,495
1,240
159
172
7,193
872
5,746
2,083
11,041
5,875
4,190
3,327
2,466
4,123
1,201
1,355
867
707
42
83
982
54,493
2,403
89,211
38,342
2,446
78,067
# Excise Duty shown under manufacturing expenditure represents the aggregate of excise duty borne by the Company and difference between excise duty on
opening and closing stock of finished goods.
28.1 PAYMENT TO AUDITORS AS:
Particulars
(a) Statutory Audit Fees
(b) Tax Audit Fees
(c) Certification and Consultation Fees
(d) Cost Audit Fees
Total
2019-20
38
2
13
2
55
(` in crore)
2018-19
27
2
12
1
42
28.2 EXCEPTIONAL ITEM:
COVID 19 has significant impact on business operations of the Company. Further, there is substantial drop in oil prices
accompanied with unprecedented demand destruction. The Company based on its assessment has determined the impact of
such exceptional circumstances on its financial statements and the same has been disclosed separately as ‘Exceptional Item’ of
` 4,245 crore, net of taxes of ` 899 crore in the Statement of Profit and Loss for the year ended March 31, 2020. (also read with
Note C (J) of Critical Accounting Judgements and Key sources of Estimation uncertainty above).
In addition to above, the Group has also recognised ` 53 crore against erstwhile subsidiary GAPCO liability and ` 146 crore (net of
tax ` 49 crore) for Adjusted Gross Revenue (AGR) dues of Reliance Jio Infocomm Limited, as part of exceptional item.
28.3 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 ` 987 crore (Previous Year ` 866 crore).
(b) Expenditure related to Corporate Social Responsibility is ` 1,022 crore (Previous Year ` 904 crore).
Particulars
Rural Transformation
Health
Education
Sports For Development
Disaster Response
Urban Renewal
Arts, Culture and Heritage
Total
2019-20
86
55
277
64
531
4
5
1,022
(` in crore)
2018-19
156
116
540
59
31
1
1
904
(c) Out of note (b) above, ` 222 crore (Previous Year ` 341 crore) is contributed to Reliance Foundation, ` 47 crore (Previous
Year ` 41 crore) to Reliance Foundation Youth Sports and ` 229 crore (Previous Year ` 476 crore) to Reliance Foundation
Institution of Education and Research which are related parties.
29 EARNINGS PER SHARE (EPS)
FACE VALUE PER EQUITY SHARE (`)
BASIC EARNINGS PER SHARE (`) – BEFORE EXCEPTIONAL ITEM
BASIC EARNINGS PER SHARE (`) – AFTER EXCEPTIONAL ITEM
Net Profit after Tax as per Statement of Profit and Loss attributable to Equity Shareholders
(After adjusting Non-Controlling Interest) (` in crore) – Before Exceptional Item
Net Profit after Tax as per Statement of Profit and Loss attributable to Equity Shareholders
(After adjusting Non-Controlling Interest) (` in crore) – After Exceptional Item
Weighted Average number of Equity Shares used as denominator for calculating Basic EPS
DILUTED EARNINGS PER SHARE (`) – BEFORE EXCEPTIONAL ITEM
DILUTED EARNINGS PER SHARE (`) – AFTER EXCEPTIONAL ITEM
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
2019-20
2018-19
10
70.66
63.49
43,798
39,354
10
66.82
66.82
39,588
39,588
6,19,81,37,619
70.66
63.49
39,354
5,92,47,99,366
66.80
66.80
39,588
6,19,84,21,047
5,92,62,12,599
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
6,19,81,37,619
2,83,428
6,19,84,21,047
5,92,47,99,366
14,13,233
5,92,62,12,599
* Dilutive impact of Employee Stock Option Scheme.
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.
366
367
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
30. RELATED PARTIES DISCLOSURES
(I) LIST OF RELATED PARTIES AND RELATIONSHIPS:
Name of the Related Party
Relationship
Sr.
No.
1
2
3
4
5
6
7
8
9
10
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
Bookmyshow Live Private Limited (Formerly known as Nomobo Entertainment
Private Limited)
Bookmyshow Sdn. Bhd.
Bookmyshow Venues Management Private Limited (Formerly known as Go2Space Event
Management Private Limited)
Carin Commercials Private Limited
CCN DEN Network Private Limited
Centura Agro Private Limited
Chander Commercials Private Limited
Clayfin Technologies Private Limited
Creative Agrotech 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
Einsten Commercials Private Limited
Fame Agro Private Limited
Fantain Sports Private Limited
Foodfesta Wellcare Private Limited
Gaurav Overseas Private Limited
GenNext Ventures Investment Advisers LLP
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
GTPL Jyoti Cable
GTPL Kaizen Infonet Private Limited
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
^ The companies were related parties for part of the year.
Associates
Relationship
Associates
Name of the Related Party
Sr.
No.
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100 Gujarat Chemical Port Limited (Formerly known as Gujarat Chemical Port Terminal
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 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 SK Vision
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
GTPL V & S Cable Private Limited
GTPL Vidarbha Telelink Private Limited
GTPL Video Badshah Private Limited
GTPL Video Vision Private Limited
GTPL Vision Services Private Limited
GTPL Vraj Cable
GTPL VVC Network Private Limited
GTPL World View Cable
GTPL World Vision
GTPL Zigma Vision Private Limited
Company Limited)
Hathway VCN Cablenet Private Limited
101
102 Honeywell Properties Private Limited
Indian Vaccines Corporation Limited
103
Jaipur Enclave Private Limited
104
Jamnagar Utilities & Power Private Limited
105
Kaniska Commercials Private Limited
106
KCIPI Trading Company Private Limited
107
108
Konark IP Dossiers Private Limited
109 Marugandha Land Developers Private Limited
^ The companies were related parties for part of the year.
368
369
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Name of the Related Party
Relationship
Sr.
No.
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
N.C. Trading Company Private Limited
Netravati Commercials Private Limited
Noveltech Agro Private Limited
NW18 HSN Holdings PLC
Pan Cable Services Private Limited
Parinita Commercials Private Limited
Pepino Farms Private Limited
Petroleum Trust^
Prakhar Commercials Private Limited
PT Big Tree Entertainment Indonesia
Rakshita Commercials Private Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Reliance Services and Holdings Limited (Formerly known as Naroda Power
Private Limited)^
Rocky Farms Private Limited
Scod18 Networking Private Limited^
Shop CJ Network Private Limited^
Shree Salasar Bricks Private Limited
Sikka Ports and Terminals Limited
SpaceBound Web Labs Private Limited
Townscript Pte Ltd, Singapore^
Townscript USA, Inc.
Tribevibe Entertainment Private Limited^
Television Home Shopping Network Limited (Formerly known as TV18 Home Shopping
Network Limited)
Vadodara Enviro Channel Limited
Vaji Communication Private Limited
Vay Network Services Private Limited
Vishnumaya Commercials Private Limited
Vizianagar Citi Communications Private Limited
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
Ethane Crystal LLC^
Ethane Emerald LLC^
Ethane Opal LLC^
Ethane Pearl LLC^
Ethane Sapphire LLC^
Ethane Topaz LLC^
Football Sports Development Limited
Hathway Bhaskar CCN Multi Entertainment Private Limited
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152 Hathway Bhawani NDS Network Private Limited
153 Hathway Cable MCN Nanded Private Limited
154 Hathway CBN Multinet Private Limited
155 Hathway CCN Entertainment (India) Private Limited
156 Hathway CCN Multinet Private Limited
157
158 Hathway Dattatray Cable Network Private Limited
159 Hathway Digital Saharanpur Cable & Datacom Private Limited
160 Hathway ICE Television Private Limited
161
162 Hathway MCN Private Limited
163 Hathway Palampur Cable Network Private Limited
164 Hathway Prime Cable & Datacom Private Limited
^ The companies were related parties for part of the year.
Hathway Latur MCN Cable & Datacom Private Limited
Hathway Channel 5 Cable & Datacom Private Limited
Associates
Joint Ventures
Name of the Related Party
Sr.
No.
165 Hathway Sai Star Cable & Datacom Private Limited
166 Hathway Sonali OM Crystal Cable Private Limited
167
168
169
170
171
172
173 Marks and Spencer Reliance India Private Limited
174
175
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
Net 9 Online Hathway Private Limited
Pipeline Management Services Private Limited (Formerly known as Rutvi Project Managers
Private Limited)
Reliance Bally India Private Limited
Reliance Sideways Private Limited^
Reliance Paul & Shark Fashions Private Limited
Reliance-Grand Vision India Supply Private Limited
Reliance-Vision Express Private Limited
Ryohin-Keikaku Reliance India Private Limited
Supreme Tradelinks Private Limited^
TCO Reliance India Private Limited^
Ubona Technologies Private Limited
V&B Lifestyle India Private Limited
Zegna South Asia Private 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
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
Reliance Foundation
Dhirubhai Ambani Foundation
197
198 Hirachand Govardhandas Ambani Public Charitable Trust
199 HNH Trust and HNH Research Society
200 Jamnaben Hirachand Ambani Foundation
201
202 Reliance Foundation Institution of Education and Research
203 Reliance Foundations Youth Sports
204
205 IPCL Employees Provident Fund Trust
206 Reliance Employees Provident Fund Bombay
207 Reliance Industries Limited Employees Gratuity Fund
208 Reliance Industries Limited Staff Superannuation Scheme
209 Reliance Industries Limited Vadodara Units Employees Superannuation Fund
210
211
Reliance Jio Infocomm Limited Employees Gratuity Fund
RIL Vadodara Unit Employees Gratuity Fund
IPCL Employees Gratuity Fund – Baulpur Unit
^ The companies were related parties for part of the year.
Relationship
Joint Ventures
Key Managerial Personnel (KMP)
Relative of
Key Managerial Personnel (KMP)
Enterprises over which
Key Managerial Personnel are able to
exercise significant influence
Post Employment Benefits Plan
370
371
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview (II) TRANSACTIONS DURING THE YEAR WITH RELATED PARTIES:
(III) DISCLOSURE IN RESPECT OF MAJOR RELATED PARTY TRANSACTIONS DURING THE YEAR:
Sr.
No.
Nature of Transactions
(Excluding Reimbursements)
Associates/
Joint Ventures
Key Managerial
Personnel/
Relative
(` in crore)
Others
Total
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
14
Rent
Programming and Telecast Related Expenses
15
Professional Fees
16 General Expenses*
17 Donations
18
Finance Costs
Balances as at 31st March, 2020
1
2
3
4
5
6
7
8
9
Investments
Trade Receivables#
Loans and Advances
Other Financial Assets
Deposits
Unsecured Loans
Trade and Other Payables#
Other Current Assets
Financial Guarantees
Notes: Figures in italic represent Previous Year’s amounts.
* Does not include sitting fees of Non-Executive Directors.
# Include reimbursements.
372
209
255
87
1,052
-
3,768
(82)
8
406
398
57
251
1,587
1,454
4,898
5,140
119
869
-
-
-
-
2,253
2,067
13
12
55
38
48
57
29
14
-
-
2
2
47,271
2,694
123
108
33
97
12
-
1,027
1,065
75
70
1,179
860
-
-
1,447
1,419
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
110
101
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
17
3
3
-
-
-
-
-
-
586
532
-
-
-
-
-
-
-
-
-
-
-
-
573
903
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4
-
134
-
-
-
209
255
87
1,052
-
3,768
(82)
8
417
415
60
254
1,587
1,454
4,898
5,140
119
869
586
532
110
101
2,253
2,067
13
12
55
38
48
57
29
14
573
903
2
2
47,271
2,694
123
108
33
97
12
-
1,027
1,065
75
70
1,183
860
134
-
1,447
1,419
Particulars
Relationship
2019-20
(` in crore)
2018-19
Purchase of Property, Plant and Equipment and Other Intangible Assets
Gujarat Chemical Port 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
GTPL Hathway Limited
Television Home Shopping Network 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
India Gas Solutions Private Limited
Jio Payments Bank Limited
Net 9 Online Hathway Private Limited
Pipeline Management Services Private Limited
Reliance Paul & Shark Fashions Private Limited
Reliance-Vision Express Private Limited
Ryohin-Keikaku Reliance India Private Limited
TCO Reliance India Private Limited
Zegna South Asia Private Limited
Sales / Transfer / Redemption of Investments
East West Pipeline Limited
Net Loans and Advances, Deposits Given / (Returned)
Ashwani Commercials Private Limited
Einsten Commercials Private Limited
Gujarat Chemical Port Limited
Kaniska Commercials Private Limited
Prakhar Commercials Private Limited
Reliance Services and Holdings Limited
Football Sports Development Limited
Reliance Paul & Shark Fashions Private Limited
Reliance-Vision Express Private Limited
Revenue from Operations
CCN DEN Network Private Limited
DEN ADN Network Private Limited
Den Satellite Network Private Limited
DL GTPL Cabnet Private Limited
East West Pipeline Limited
Eenadu Television Private Limited
GTPL Hathway Limited
GTPL Kolkata Cable & Broadband Pariseva Limited
Gujarat Chemical Port Limited
Jamnagar Utilities & Power Private Limited
Reliance Industrial Infrastructure 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
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
-
38
8
163
-
-
-
-
-
-
5
51
-
-
-
-
-
-
-
-
-
1
5
8
14
3
-
-
(1)
(41)
3
-
(2)
(42)
-
-
3
3
19
5
-
10
92
19
4
126
-
1
18
20
216
136
278
4
64
391
61
6
-
1
4
6
4
10
6
70
3
1
1
3
3
-
-
3,768
(3)
-
(25)
-
(19)
-
51
1
3
-
-
2
-
34
2
3
2
2
279
1
373
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Particulars
Sikka Ports and Terminals Limited
Television Home Shopping Network Limited
Brooks Brothers India Private Limited
Burberry India Private Limited
Diesel Fashion India Reliance Private Limited
Football Sports Development Limited
Hathway Cable MCN Nanded Private Limited
Hathway CCN Entertainment (India) Private Limited
Hathway CCN Multinet Private Limited
Hathway Latur MCN Cable & Datacom Private Limited
Hathway MCN Private Limited
Hathway Sai Star Cable & Datacom Private Limited
IBN Lokmat News Private Limited
Iconix Lifestyle India Private Limited
IMG Reliance Limited
India Gas Solutions Private Limited
Jio Payments Bank Limited
Marks and Spencer Reliance India Private Limited
Net 9 Online Hathway Private Limited
Pipeline Management Services Private Limited
Reliance Bally India Private Limited
Reliance Paul & Shark Fashions Private Limited
Reliance-Vision Express Private Limited
Ryohin-Keikaku Reliance India Private Limited
Zegna South Asia Private Limited
Reliance Foundation
Other Income
CCN DEN Network Private Limited
DEN ADN Network Private Limited
East West Pipeline Limited
GTPL Hathway Limited
Gujarat Chemical Port Limited
Jamnagar Utilities & Power Private Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
Football Sports Development Limited
IBN Lokmat News Private Limited
Iconix Lifestyle India Private Limited
India Gas Solutions Private Limited
Pipeline Management Services Private Limited
Jamnaben Hirachand Ambani Foundation
Purchases / Material Consumed
East West Pipeline Limited
Gujarat Chemical Port 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
Electric Power, Fuel and Water
Jamnagar Utilities & Power Private Limited
374
Relationship
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
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Others
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Others
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Joint Venture
2019-20
(` in crore)
2018-19
19
-
4
1
6
3
5
1
1
4
10
4
1
3
18
1
5
20
1
4
2
1
3
2
2
11
3
1
-
1
10
2
16
2
-
1
11
1
6
3
-
162
-
21
1,395
1
1
-
5
22
2
4
-
6
9
-
-
-
-
-
-
1
3
10
3
3
1
-
-
1
1
3
2
2
17
-
-
229
-
1
-
15
2
4
-
-
-
-
3
1
160
6
21
1,259
3
1
1
2
5,140
Associate
4,898
Particulars
Hire Charges
East West Pipeline Limited
Reliance Industrial Infrastructure Limited
Sikka Ports and Terminals Limited
Employee Benefits Expense
HNH Trust and HNH Research Society
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
CCN DEN Network Private Limited
DEN ADN Network Private Limited
Den Satellite Network Private Limited
DL GTPL Cabnet Private Limited
GTPL Hathway Limited
GTPL Kolkata Cable & Broadband Pariseva Limited
Gujarat Chemical Port Limited
Sikka Ports and Terminals Limited
Hathway Sai Star Cable & Datacom Private 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
Hathway Cable MCN Nanded Private Limited
Hathway Dattatray Cable Network Private Limited
Hathway Latur MCN Cable & Datacom Private Limited
Hathway MCN Private Limited
Hathway Sai Star Cable & Datacom Private Limited
IBN Lokmat News Private Limited
IMG Reliance Limited
* Also include Employee Contribution.
Relationship
2019-20
(` in crore)
2018-19
Associate
Associate
Associate
Others
Others*
Others*
Others*
Others*
Others*
Others*
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
KMP
Relative of KMP
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
-
22
97
10
124
320
100
11
1
20
15
24
24
11
4
12
14
3
2
1
-
2
1
5
3
49
6
65
2,118
2
1
2
11
1
26
-
-
1
1
1
3
2
2
18
759
23
87
8
109
314
63
11
1
26
15
21
21
10
4
12
14
2
-
2
1
-
-
-
-
-
-
63
2003
-
-
2
10
7
14
1
5
-
-
-
-
-
2
9
375
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Particulars
Professional Fees
Big Tree Entertainment Private Limited
Reliance Europe Limited
Reliance Industrial Infrastructure Limited
IMG Reliance Limited
Pipeline Management Services Private Limited
General Expenses
CCN DEN Network Private Limited
DEN ADN Network Private Limited
Den Satellite Network Private Limited
Eenadu Television Private Limited
Reliance Europe Limited
Sikka Ports and Terminals Limited
Vadodara Enviro Channel Limited
IMG Reliance Limited
Jio Payments Bank Limited
Zegna South Asia Private 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
(IV) DISCLOSURE IN RESPECT OF MAJOR RELATED PARTY BALANCES:
Particulars
Loans and Advances
CCN DEN Network Private Limited
DEN ADN Network Private Limited
Reliance Services and Holdings Limited
Football Sports Development Limited
Hathway ICE Television Private Limited
Hathway Sai Star Cable & Datacom Private 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 Limited
Honeywell Properties Private Limited
Jaipur Enclave Private Limited
376
Relationship
2019-20
(` in crore)
2018-19
Associate
Associate
Associate
Joint Venture
Joint Venture
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Others
Others
Others
Others
Others
Associate
1
23
17
2
4
1
1
5
1
3
12
3
1
1
1
6
66
225
229
47
2
1
29
27
-
-
-
-
-
-
-
13
-
-
1
-
5
40
341
476
41
2
Relationship
As at
31st March, 2020
(` in crore)
As at
31st March, 2019
Associate
Associate
Associate
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
18
6
7
-
1
1
-
-
63
19
77
10
35
15
36
3
17
71
50
4
-
-
-
93
-
-
1
3
63
19
77
10
35
15
36
3
17
112
50
4
Particulars
Jamnagar Utilities & Power 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
Rocky Farms Private Limited
Shree Salasar Bricks Private Limited
Sikka Ports and Terminals Limited
Vishnumaya Commercials Private Limited
Financial Guarantees
Reliance Europe Limited
Relationship
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
As at
31st March, 2020
118
30
5
6
3
6
1
30
6
29
33
353
7
(` in crore)
As at
31st March, 2019
118
27
5
6
3
6
1
29
6
29
33
353
8
Associate
1,447
1,419
30.1 COMPENSATION OF KEY MANAGERIAL PERSONNEL
The compensation of director and other member of Key Managerial Personnel during the year was as follows:
i. Short-Term Benefits
ii. Post Employment Benefits
iii. Share Based Payments
Total
2019-20
106
3
-
109
(` in crore)
2018-19
94
3
2
99
31.1 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)
1
Panna Mukta *
Company’s % Interest Partners and their Participating Interest (PI)
Country
2019-20
-
2018-19
30% BG Exploration & Production India Limited – 30% ;
India
Oil and Natural Gas Corporation Limited – 40%
2 Mid and South Tapti
30%
30% BG Exploration & Production India Limited – 30% ;
India
3
4
5
6
7
NEC – OSN – 97/2
KG – DWN – 98/3#
GS – OSN – 2000/1 ^
KG-UDWHP-2018/1
EFS JDA Partnership
Oil and Natural Gas Corporation Limited – 40%
66.67%
66.67%
66.67% BP Exploration (Alpha) Limited – 33.33%
60% BP Exploration (Alpha) Limited – 33.33%
-
90%
Hardy Exploration and Production (India) Inc.
– 10%
60%
45%
- BP Exploration (Alpha) Ltd. – 40%,
45% Ensign Operating LLC – 46.354%;
India
India
India
India
USA
(Prevoius Year Pioneer Natural Resources USA
Inc. – 46.354%)
Newpek LLC – 8.646%
8
Atlas Reliance Marcellus Joint Venture Partnership
40%
40% Chevron Upstream Northeast LLC – 60%
USA
* Panna Mukta Production sharing contract (“PSC”) expired on 21st December, 2019 and all assets and liabilities transferred to Government of India (“GOI”)
Nominee i.e. ONGC.
# Post default of Niko, GOI has approved revised PI (RIL 66.67% and BP 33.33%) in KGD6 effective from 29th August, 2019 and accordingly PSC was
amended.
^ Block GS-OSN-2000/1 has been surrendered to GOI w.e.f. 21st August, 2019.
377
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
31.2 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*)
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
3.02
0.33
-
(0.11)
3.24
3.39
(0.18)
-
(0.19)
3.02
0.10
0.01
-
(0.11)
-
0.26
0.03
-
(0.19)
0.10
8.92
1.48
-
(0.40)
10.00
10.52
(0.72)
(0.29)
(0.59)
8.92
2.40
0.45
-
(0.40)
2.45
3.42
(0.14)
(0.29)
(0.59)
2.40
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#)
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
55,239
4,274
-
(987)
58,526
56,479
194
-
(1,434)
55,239
9,961
251
-
(987)
9,225
11,201
194
-
(1,434)
9,961
38,422
(2,688)
-
(1,489)
34,245
38,091
2,081
(112)
(1,638)
38,422
13,634
5,064
-
(1,489)
17,209
14,556
828
(112)
(1,638)
13,634
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.
31.3 The Government of India (GOI), by its letters dated
2nd May, 2012, 14th November, 2013, 10th July 2014
and 3rd June, 2016 has disallowed certain costs which
the Production Sharing Contract “(PSC”), relating to
Block KGDWN-98/3 entitles the Company to recover.
The Company continues to maintain that a Contractor is
entitled to recover all of its costs under the terms of the
PSC and there are no provisions that entitle the GOI to
disallow the recovery of any Contract Cost as defined in
the PSC. The Company has already referred the issue
to arbitration and communicated the same to GOI for
resolution of disputes. The demand from the GOI of $ 165
million (` 1,246 crore) being the Company’s share [total
demand $ 247 million; (` 1,869 crore)] towards additional
Profit Petroleum has been considered as contingent
liability. The arbitration tribunal has scheduled the seventh
procedural hearing in December 2020.
31.4 (a) GOI sent a notice to the KG D6 Contractor on
4th November, 2016 asking the Contractor to
deposit approximately $1.55 billion on account of
alleged gas migration from ONGC’s blocks. RIL, as
Operator, for and on behalf of all constituents of the
Contractor, initiated arbitration proceedings against
the GOI. The Arbitral Tribunal vide its Final Award
(b)
dated 24th July, 2018 upheld Contractor’s claims.
GOI filed an Appeal on 15th November, 2018 before
the Hon’ble Delhi High Court, under Section 34 of
the Arbitration Act, against the Final Award of the
Arbitral Tribunal and the Appeal is currently pending
adjudication before the Hon’ble Delhi High Court.
The matter is listed for hearing on 16th July, 2020.
In supersession of Ministry’s Gazette Notification no.
22011/3/2012-ONG.D.V. dated 10th January, 2014,
the GOI notified the New Domestic natural Gas
Pricing Guidelines 2014, the GOI has directed the
Company to instruct customers to deposit differential
revenue on gas sales from D1D3 field on account of
the prices determined under the above guidelines
converted to NCV basis and the prevailing price
prior to 1st November, 2014 ($ 4.205 per MMBTU)
to be credited to the gas pool account maintained
by GAIL (India) Limited. The amount so deposited
by customer in Gas pool Account is ` 295 crore
(net) as at 31st March, 2020 is disclosed under
Other Non-Current Assets (Refer Note 5). Revenue
has been recognised at the GOI notified prices in
respect of gas quantities sold from D1D3 field from
1st November 2014.
(c) An arbitration was initiated by BG Exploration and
Production India Limited and RIL (together the
Claimants) against GOI on 16th December, 2010
under the PSCs for Panna – Mukta and Tapti blocks
due to difference in interpretation of certain PSC
provisions between Claimants and GOI. The Arbitral
Tribunal by majority issued a final partial award (‘2016
FPA’), and separately, two dissenting opinions in the
matter on 12th October, 2016. Claimants challenged
certain parts of the 2016 FPA before the English
Courts, which delivered its judgement on 16th April,
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
1st October, 2018 (‘2018 FPA’). GOI and Claimants
filed an appeal before the English Commercial Court
against this 2018 FPA. The English Commercial
Court has rejected GOI’s challenges to 2018 Final
Partial Award and upheld Claimants’ challenge
that Arbitration Tribunal had jurisdiction over the
limited issue and has remitted the issue back to
the Arbitration Tribunal to be decided by 28th May,
2020 (or such later date as the parties may agree in
writing or the Court may order). Claimants have filed
an application before the Arbitral Tribunal seeking
increase in the PSC Cost Recovery Limit and the
same is pending. The arbitration hearings to hear the
said application which was scheduled in March/April
2020 have been rescheduled due to COVID-19. The
Arbitration Tribunal is yet to schedule recomputation
of accounts and the quantification phase of the
arbitration, which will take place after determination
of the Claimants’ request for an increase in the cost
recovery limit under the PSCs.
GOI 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 2016 FPA. The
Claimants content that GOI’s Execution Petition is not
maintainable. GOI’s Execution Petition is currently
sub-judice. Claimants have also filed Application for
Recall/Modification, challenging the Orders of Delhi
High Court wherein Directors were directed to file
Affidavits of Assets. The matter is listed on 19th June,
2020 for hearing.
(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 initiated arbitration proceedings against the
Company and BP on 19th December, 2018 and the
arbitration tribunal has been constituted. Parties
informed the Tribunal that they have entered into
a settlement agreement to resolve the arbitration
dispute and requested Tribunal to make a Consent
Award. Tribunal is in the process of issuing the Final
Award by Consent
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. Moreover, the Company considers
above demand/disputes remote.
378
379
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
32. 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
(a)
(b)
In respect of Joint Ventures
In respect of Others
(ii) Performance Guarantees
In respect of Others
(iii)
-
Outstanding Guarantees furnished to Banks and Financial Institutions including in respect
of Letters of Credits
(a)
(b)
In respect of Joint Ventures
In respect of Others
(II) COMMITMENTS
(A) 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) Other Commitments
(i)
Investments
2019-20
(` in crore)
2018-19
1,839
5,049
1,253
4,088
20
7,393
1,965
1,391
14,686
11,396
8,306
2,401
445
-
7,210
1,655
1,254
13,779
3,599
15,171
2,431
464
* 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 ` 48 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
Futures and Options segment expired on March 23, 2018.
The appeal has been heard by the Hon’ble SAT and is
reserved for judgement.
(V) Plaintiffs in the relevant case had filed a Derivative action
suit of ` 3,114 crore before the Bombay High Court alleging
that all business opportunities undertaken by the certain
companies of Network18 Group should be routed through
e-Eighteen.com Limited. Based on the legal advice by the
legal counsel, management is of the view that the above
claim made by the plaintiffs is unlikely to succeed.
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 filed an appeal against the said order
before the Hon’ble SAT. The Hon’ble SAT has stayed the
direction on disgorgement until the disposal of the appeal.
The prohibition from dealing in equity derivatives in the
33. CAPITAL MANAGEMENT
The Group adheres to a disciplined Capital Management
framework in order to maintain a strong balance sheet. The
main objectives are as follows:
a)
Maintain investment grade ratings for all issuing entities,
domestically and internationally by ensuring that the
financial strength of their Balance Sheets are preserved.
Manage foreign exchange, interest rates and
commodity price risk, and minimise the impact of market
volatility on earnings.
Diversify sources of financing and spread the maturity
across tenure buckets in order to manage liquidity risk.
Leverage optimally in order to maximise
shareholder returns.
b)
c)
d)
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, 2020
3,36,294
1,75,259
1,61,035
4,53,331
0.36
(` in crore)
As at
31st March, 2019
2,87,505
1,36,743
1,50,762
3,87,112
0.39
* Cash and Marketable Securities include Cash and Cash Equivalents of ` 30,920 crore (Previous Year ` 11,081 crore), Current Investments of ` 72,915
crore (Previous Year ` 71,023 crore) and Other Marketable Securities of ` 71,424 crore (Previous Year ` 54,639 crore) including investments in Jio Digital
Fibre Private Limited and Reliance Jio Infratel Private Limited.
Additionally, if Investment in RIL Shares held by Petroleum Trust and Reliance Services and Holdings Limited is considered as Marketable Securities, the
Net Debt shall further reduce by ` 43,294 crore to ` 1,17,741 crore.
34. 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
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
As at 31st March, 2020
As at 31st March, 2019
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)
43,356
19,656
30,920
22,401
16,465
34,301
-
10,969
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,689
-
2
27,508
-
10,967
1,104
-
-
57,181
30,089
11,081
5,895
9,369
50,503
102
914
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18,190
-
8
20,235
102
906
12,078
-
-
1,51,839
67,432
1,510
82,897
1,25,257
40,119
2,281
82,857
3,36,294
96,799
1,12,143
-
-
-
-
-
-
6,000
37
5,963
562
-
562
-
-
-
-
-
2,87,505
1,08,309
77,422
4,077
9
-
-
-
17
-
-
-
-
4,060
9
-
-
-
-
-
# Exclude Investments in Associates and Joint Ventures [` 47,271 crore (Previous Year ` 2,694 crore)] measured at cost (Refer Note 2.1).
380
381
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Reconciliation of fair value measurement of the investment categorised at Level 3:
(` in crore)
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
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, 2020
As at 31st March, 2019
At FVTPL
At FVTOCI
At FVTPL
At FVTOCI
12,078
655
11,633
4
1,104
Other Income –
` 4 crore unrealised
82,857
4,972
4,939
7
82,897
Other
Comprehensive
Income – Items that
will not be
reclassified
to Profit or Loss
178
11,636
248
512
12,078
Other Income –
` 246 crore
realised;
` 266 crore
unrealised
745
4,847
-
77,265
82,857
Other
Comprehensive
Income – Items that
will not be
reclassified
to Profit or Loss
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)
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.
e)
f)
g)
h)
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.
The fair value of the remaining financial instruments is
determined using discounted cash flow analysis.
All foreign currency denominated assets and liabilities are
translated using exchange rate at reporting date.
B. FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to variety of financial risks:
market risk, credit risk, interest rate risk and liquidity risk.
Within the boundaries of approved Risk Management
Policy framework The Group uses derivative instruments
to manage the volatility of financial markets and minimise
the adverse impact on its financial performance.
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.
382
Particulars
Borrowings
Trade and Other Payables
Trade and Other Receivables
Derivatives
- Forwards and Futures
- Currency Swaps
- Options
Exposure
b)
Interest Rate Risk
Foreign Currency Exposure
(` in crore)
As at 31st March, 2020
As at 31st March, 2019
USD
EUR
JPY
USD
EUR
JPY
1,28,414
81,528
(12,151)
18,820
918
(1,738)
10,717
45
-
1,14,151
87,289
(9,432)
10,552
1,699
(168)
5,738
10
(3)
(53,341)
(3,712)
(3,620)
(16,571)
-
(1,929)
1,37,118 (500)
(10,707)
-
-
55
(50,112)
(6,172)
(3,987)
1,31,737
(11,723)
-
-
360
(5,720)
-
-
25
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:
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
Interest Rate Exposure
(` in crore)
As at
31st March, 2020
As at
31st March, 2019
1,33,952
1,10,477
94,765
3,39,194
51,849
10,050
3,712
400
1,09,411
1,15,221
64,840
2,89,472
40,822
13,228
(6,172)
184
* Include ` 1,921 crore (Previous Year ` 1,563 crore) as Prepaid Financial Charges.
# Include ` 979 crore (Previous Year ` 404 crore) as Commercial Paper Discount.
ii) Commodity Price Risk
iii) Credit 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.
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 and other financial instruments. 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, respond and recognise cases of
credit deterioration.
383
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
The Group has a prudent and conservative process
for managing its credit risk arising in the course of
its business activities. Credit risk across the Group,
is actively managed through Letters of Credit, Bank
Guarantees, Parent Group Guarantees, advance
payments, security deposits and factoring and
forfaiting without recourse to Group. The Group
restricts its fixed income investments in liquid
securities carrying high credit rating.
iv) Liquidity Risk
Liquidity risk arises from the Group’s inability to meet
its cash flow commitments on the due date. The
Group maintains sufficient stock of cash, marketable
securities and committed credit facilities. The Group
accesses global and local financial markets to meet
its liquidity requirements. It uses a range of products
and a mix of currencies to ensure efficient funding
from across well-diversified markets and investor
pools. Treasury monitors rolling forecasts of the
Group’s cash flow position and ensures that the
Group is able to meet its financial obligation at all
times including contingencies.
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.
C. RECLASSIFICATION
D. HEDGE ACCOUNTING
The Company has reclassified certain non-derivative
financial assets on 1st day of July, 2018 from fair value
through profit and loss (FVTPL) to 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 ` 10,301 crore (Previous Year ` 18,722 crore) and
` 12,112 crore (Previous Year ` 20,059 crore) respectively.
Effective interest rate for the year is 7.90% per annum
(Previous Year 7.54% per annum). Interest revenue
recognised during the period ` 814 crore (Previous Year
` 1,060 crore).
Change in fair value gain/(loss) of ` 225 crore (Previous
Year ` 277 crore) that would have been recognised in
profit and loss during the reporting period if the financial
assets had not been reclassified.
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.
Maturity Profile as at 31st March, 2020
(` in crore)
Refer Note 2 and 7.
Particulars*
Borrowings
Non-Current#
Current ^
Total
Other Financial Liabilities
Derivative Liabilities
Forwards
Options
Currency Swaps
Interest Rate Swaps
Total
Below
3 Months
3-6
Months
6-12
Months
1-3
Years
3-5
Years
Above
5 Years
Total
10,371
77,730
88,101
459
4,155
31
320
3
4,509
16,844
4,637
21,481
459
18,001
12,398
30,399
895
72,347
-
72,347
3,471
68,631
-
68,631
2,809
-
58,235 2,44,429
94,765
58,235 3,39,194
13,708
5,615
115
-
240
1
356
115
-
415
342
872
75
-
-
331
406
-
-
-
235
235
-
-
-
-
-
4,460
31
975
912
6,378
* Does not include Trade Payables (Current) amounting to ` 96,799 crore.
# Include ` 1,921 crore as Prepaid Finance Charges.
^ Include ` 979 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, 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
3,842
1,549
5,391
7,457
2,989
10,446
82,466
-
82,466
57,601
-
57,601
68,784 2,24,632
64,840
68,784 2,89,472
-
1,192
53
1
153
1,399
945
-
-
1
946
772
-
(53)
6
725
23
-
735
54
812
1
-
(37)
231
195
-
-
-
-
-
2,933
53
646
445
4,077
** 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.
384
Disclosure of effect of Hedge Accounting:
A. Fair Value Hedge
Hedging Instruments
Particulars
Nominal
Value
Quantity
Carrying Amount
(Kbbl)
(Kgs)
Assets
Liabilities
Changes in
Fair Value
Hedge
Maturity
Line Item in
Balance Sheet
(` in crore)
As at 31st March, 2020
Foreign Currency
Risk
Foreign Currency
Risk Component –
Forwards
Commodity Price
Risk
Derivative Contracts
As at 31st March, 2019
Foreign Currency
Risk
Foreign Currency
Risk Component
– Forwards
Commodity Price
Risk
Derivative Contracts
-
-
-
-
-
-
-
-
46,161 5,67,894
4,987
6,701
3,879
1,541
April 2020
to December
2023
Other Financial
Assets/
Liabilities
480
-
-
-
37
(37)
47,479 3,60,229
2,981
689
559
43
April 2019 to
December
2019
Other Financial
Liabilities
February 2019
to December
2021
Other Financial
Assets/
Liabilities
385
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Hedged Items
Particulars
As at 31st March, 2020
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, 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
Carrying Amount
Assets
Liabilities
Changes
in Fair
Value
(` in crore)
Line Item in Balance Sheet
-
-
-
3,214
197
9,251
37
131
-
5,021
116
3,141
-
3,069 Other Current Assets / Liabilities
Other Current Assets
Inventories
(3,034)
(1,296)
-
198
414
-
37
Other Current Assets
20 Other Current Assets / Liabilities
Other Current Assets
Inventories
(414)
308
Nominal
Value
Carrying Amount
Assets
Liabilities
Changes in
Fair Value
Hedge
Maturity
(` in crore)
Line Item in
Balance Sheet
48,693
18,491
-
-
-
52,966
(4,272)
19,384
(893)
April 2020 to
December 2021
April 2020 to
September 2022
Trade Payables
Borrowings
405
(405)
March 2021 to March
2025
Other Financial
Liabilities
Interest Rate Swap
49,931
As at 31st March, 2019
Foreign Currency Risk
Foreign Currency Risk
Components – Trade
Payable
20,759
-
20,747
12
April 2019 to
December 2019
Trade Payable
B. Cash Flow Hedge
Hedging Instruments
Particulars
As at 31st March, 2020
Foreign Currency Risk
Foreign Currency Risk
Components – Trade
Payable
Foreign Currency
Risk Components
– Borrowings
Interest Rate Risk
Hedged Items
Particulars
Nominal Value
Changes in
Fair Value
Hedge Reserve
(` in crore)
Line Item in
Balance Sheet
As at 31st March, 2020
Foreign Currency Risk
Highly Probable Forecasted
Exports
Interest Rate Risk
Borrowings
As at 31st March, 2019
Foreign Currency Risk
Highly Probable Forecasted
Exports
C. Movement in Cash Flow Hedge
67,184
49,931
5,165
405
(5,165)
Other Equity
(718)
Other Equity
20,759
(12)
12
Other Equity
Particulars
2019-20
2018-19
Line Item in Balance Sheet/
Statement of Profit and Loss
(` in crore)
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
46
(6,298)
369
(5,883)
44
(1,748)
Items that will be reclassified to Profit &
Loss
1,750 Value of Sale
46 Other Comprehensive Income
Sl.
No.
1
2
3
4
35. 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 six principal operating and reporting segments;
viz. Refining, Petrochemicals, Oil and Gas, Organised Retail,
Digital Services and Financial 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)
b)
Revenue and Expenses have been identified to a
segment on the basis of relationship to operating
activities of the segment. Revenue and Expenses which
relate to enterprise as a whole and are not allocable to
a segment on reasonable basis have been disclosed
as “Unallocable”.
Segment Assets and Segment Liabilities represent Assets
and Liabilities in respective segments. Investments, tax
related assets and other assets and liabilities that cannot
be allocated to a segment on reasonable basis have been
disclosed as “Unallocable”.
386
387
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
(I) PRIMARY SEGMENT INFORMATION
Refining
Petrochemicals
Oil and Gas
Organised Retail
Digital Services
Financial Services
Others
Unallocable
Total
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
2019-20
2018-19
(` in crore)
3,09,892
77,630
3,87,522
3,07,154
86,834
3,93,988
1,30,010
15,254
1,45,264
1,54,502
17,563
1,72,065
2,666
545
3,211
4,384
621
5,005
1,57,851
5,085
1,62,936
1,29,466
1,100
1,30,566
21,468
46,994
68,462
11,218
37,442
48,660
811
3,86,711
1,000
3,92,988
13,181
1,32,083
15,243
1,56,822
-
3,211
-
5,005
16,664
1,46,272
14,209
1,16,357
10,198
58,264
7,322
41,338
758
513
1,271
-
1,271
21,334
22,880
25,547
32,394
(1,407)
(1,379)
8,263
5,546
14,363
8,784
473
250
-
250
-
250
233
36,560
5,903
42,463
6,706
35,757
18,238 -
3,913 -
22,151 -
6,59,205
-
-
-
- 6,59,205
6,25,212
-
6,25,212
-
4,344
17,807 -
-
-
47,560
6,11,645
42,118
5,83,094
-
-
-
The Organised Retail segment includes organised retail business in India.
The Digital Services segment includes provision of a range of digital services in India and investment in telecom
infrastructure business.
The Financial Services segment comprises of management and deployment of identified resources of the Company to
various activities including non-banking financial services, insurance broking etc.
- Other business segments which are not separately reportable have been grouped under the Others segment.
This mainly comprises of:
• Media
•
•
SEZ Development
Textile
2,721
1,225 (1,344)
(2,917)
69,950
66,766
(V) During the year, the Company has identified ‘Financial services’ as a separate business segment. It is based on internal
21,880
9,980
16,491
4,952
21,880
9,980
16,491
4,952
21,334
22,880
25,547
32,394
(1,407)
(1,379)
8,263
5,546
14,363
8,784
473
233
2,721
1,225
(13,244)
(14,456)
58,050
55,227
21,334
22,880
25,547
32,394
(1,407)
(1,379)
8,263
5,546
14,363
8,784
473
233
2,721
1,225
21,334
22,880
25,547
32,394
(1,407)
(1,379)
8,263
5,546
14,363
8,784
473
233
2,721
1,225
(4,444)
-
(4,444)
-
(17,688)
8,630
5,096
(31,414)
(14,456)
11,683
3,707
(29,846)
53,606
8,630
5,096
39,880
55,227
11,683
3,707
39,837
-
-
1
1
-
-
(276)
(177)
(31)
(36)
-
-
(220)
(37)
-
-
(526)
(249)
21,334
22,880
25,548
32,395
(1,407)
(1,379)
7,987
5,369
14,332
8,748
473
233
2,501
1,188
(31,414)
(29,846)
39,354
39,588
reorganisation of its business segments, increased focus and business review carried out by the Chief Operating Decision Maker
(CODM) of the Company – Executive Committee. The Financial Services segment comprises of management and deployment of
identified resources of the Company to various activities including non-banking financial services, insurance broking etc.
Further, the CODM has evaluated that business trade financing would be part of the centralised treasury function along with
management of long-term resources raised by the Company.
(VI) SECONDARY SEGMENT INFORMATION
1
2
Segment Revenue – External Turnover
Within India
Outside India
Total
Non-Current Assets
Within India
Outside India
Total
2019-20
3,61,801
2,97,404
6,59,205
8,82,217
25,438
9,07,655
(` in crore)
2018-19
3,21,011
3,04,201
6,25,212
7,48,865
21,488
7,70,353
2,29,070
38,265
10,805
3,127
2,20,103
46,928
14,105
3,170
1,30,866
12,129
7,306
5,386
1,29,952
21,745
1,527
5,472
42,693
42,626
3,134
1,760
36,133
42,201
5,899
3,021
38,165
19,276
9,259
1,391
35,560
22,508
4,971
655
2,77,439
75,837
38,972
8,154
2,13,393
1,50,083
(40,621)
6,558
25,258
78
-
-
8,332
19
-
-
92,522
25,180
10,697
1,853
65,992
10,790
15,754
1,525
3,29,902
9,52,524
340
532
2,92,941
7,08,132
1,735
533
11,65,915
11,65,915
80,513
22,203
10,02,406
10,02,406
3,370
20,934
36. ENTERPRISES CONSOLIDATED AS SUBSIDIARY IN ACCORDANCE WITH INDIAN ACCOUNTING STANDARD 110 –
CONSOLIDATED FINANCIAL STATEMENTS
Name of the Enterprise
Sr.
No.
Country of
Incorporation
Proportion of
Ownership Interest
Particulars
1
Segment Revenue
External Turnover
Inter Segment Turnover
Value of Sales and
Services (Revenue) *
Less: GST Recovered
Revenue from Operations
(Net of GST)
2 Segment Result before
Interest and Taxes#
Less: Finance Cost ^
Add: Interest Income **
Profit Before Tax and
Exceptional Items
Less: Exceptional Item
(Net of Tax)
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
* Total Value of Sales and Services is after elimination of inter segment turnover of ` 1,51,924 crore (Previous Year ` 1,47,473 crore).
# Segment results (EBIT) of the financial services segment include interest income and interest expense relating to the segment.
^ Finance cost relating to Financial Services segment of ` 147 crore (Previous Year ` 4 crore) has been considered as part of Segment result.
** Interest Income relating to Petrochemicals Segment of ` 337 crore (Previous Year Nil) has been considered as part of Segment result.
(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.
388
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
ABC Cable Network Private Limited
Adhunik Cable Network Limited (Formerly known as Adhunik Cable Network Private Limited)
Adventure Marketing Private Limited
AETN18 Media Private Limited
Affinity Names Inc. *
Affinity USA Inc. *
Ambika DEN Cable Network Private Limited
Amogh Broad Band Services Private Limited
Angel Cable Network Private Limited
Antique Communications Private Limited
Asteria Aerospace Private Limited
Augment Cable Network Private Limited
Aurora Algae Inc. *
Bali Den Cable Network Limited (Formerly known as 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
India
India
India
India
USA
USA
India
India
India
India
India
India
USA
India
India
India
India
India
* Subsidiary Company having 31st December as reporting date.
44.00%
78.58%
100.00%
21.27%
100.00%
100.00%
78.58%
78.58%
44.00%
78.58%
74.57%
78.58%
100.00%
40.11%
71.96%
20.44%
78.58%
71.96%
389
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Name of the Enterprise
Sr.
No.
Country of
Incorporation
Proportion of
Ownership Interest
Name of the Enterprise
Sr.
No.
Country of
Incorporation
Proportion of
Ownership Interest
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
C-Square Info Solutions Private Limited
Den A.F. Communication Private Limited
Den Aman Entertainment Private Limited
DEN Ambey Cable Networks Private Limited
Den Ashu Cable Limited (Formerly known as Den Ashu Cable Private Limited)
DEN BCN Suncity Network Limited (Formerly known as 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 Limited (Formerly known as 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
DEN Harsh Mann Cable Network Limited (Formerly known as DEN Harsh Mann Cable Network
Private Limited)
Den Jai Ambey Vision Cable Private Limited
Den Kashi Cable Network Limited (Formerly known as Den Kashi Cable Network
Private Limited)
Den Kattakada Telecasting And Cable Services Limited (Formerly known as Den Kattakada
Telecasting And Cable Services Private Limited)
DEN Krishna Cable TV Network Limited (Formerly known as DEN Krishna Cable TV Network
Private Limited)
Den Maa Sharda Vision Cable Networks Limited (Formerly known as 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 Limited (Formerly known as Den MCN Cable Network Private Limited)
Den Mod Max Cable Network Private Limited
Den Nashik City Cable Network Private Limited
Den Networks Limited
DEN Patel Entertainment Network Private Limited
DEN Pawan Cable Network Limited (Formerly known as DEN Pawan Cable Network
Private Limited)
Den Pradeep Cable Network Private Limited
DEN Prayag Cable Networks Limited (Formerly known as DEN Prayag Cable Networks
Private Limited)
Den Premium Multilink Cable Network Private Limited
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
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
390
78.58%
40.09%
67.56%
54.68%
100.00%
73.15%
40.07%
89.45%
78.58%
78.58%
47.93%
40.07%
40.09%
40.07%
78.58%
40.07%
78.58%
78.58%
78.58%
69.59%
40.07%
78.58%
40.07%
20.44%
20.44%
40.07%
78.58%
40.07%
40.07%
78.58%
40.07%
78.58%
58.15%
40.07%
47.15%
40.07%
40.07%
78.58%
40.07%
40.07%
78.58%
40.07%
49.50%
78.58%
78.58%
40.07%
76
69
70
71
72
73
74
75
65
66
67
68
Den Prince Network Limited (Formerly known as Den Prince Network Private Limited)
Den Radiant Satelite Cable Network Private Limited
Den Rajkot City Communication Private Limited
Den Sahyog Cable Network Limited (Formerly known as Den Sahyog Cable Network
Private Limited)
Den Sariga Communications Private Limited
Den Satellite Cable TV Network Private Limited
Den Saya Channel Network Limited (Formerly known as 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 Limited (Formerly known as Den Varun Cable Network
Private Limited)
Den VM Magic Entertainment Limited (Formerly known as Den VM Magic Entertainment
Private Limited)
Den-Manoranjan Satellite Private Limited
77
Desire Cable Network Limited (Formerly known as Desire Cable Network Private Limited)
78
Devine Cable Network Private Limited
79
Digital Media Distribution Trust
80
Digital18 Media Limited
81
Disk Cable Network Private Limited
82
Divya Drishti Den Cable Network Private Limited
83
Drashti Cable Network Private Limited
84
Dronagiri Bokadvira East Infra Limited
85
Dronagiri Bokadvira North Infra Limited
86
Dronagiri Bokadvira South Infra Limited
87
Dronagiri Bokadvira West Infra Limited
88
Dronagiri Dongri East Infra Limited
89
Dronagiri Dongri North Infra Limited
90
Dronagiri Dongri South Infra Limited
91
Dronagiri Dongri West Infra Limited
92
Dronagiri Funde East Infra Limited
93
Dronagiri Funde North Infra Limited
94
Dronagiri Funde South Infra Limited
95
Dronagiri Funde West Infra Limited
96
Dronagiri Navghar East Infra Limited
97
Dronagiri Navghar North First Infra Limited
98
99
Dronagiri Navghar North Infra Limited
100 Dronagiri Navghar North Second Infra Limited
101
102 Dronagiri Navghar South Infra Limited
103 Dronagiri Navghar South Second Infra Limited
104 Dronagiri Navghar West Infra Limited
105 Dronagiri Pagote East Infra Limited
106 Dronagiri Pagote North First Infra Limited
107
Dronagiri Pagote North Infra Limited
108 Dronagiri Pagote North Second Infra Limited
109 Dronagiri Pagote South First Infra Limited
Dronagiri Pagote South Infra Limited
110
Dronagiri Pagote West Infra Limited
111
Dronagiri Panje East Infra Limited
112
Dronagiri Panje North Infra Limited
113
Dronagiri Panje South Infra Limited
114
Dronagiri Navghar South First Infra Limited
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
78.58%
78.58%
40.06%
78.58%
78.58%
40.07%
40.07%
78.58%
20.44%
40.07%
40.07%
78.58%
40.07%
78.58%
78.58%
100.00%
73.15%
40.07%
42.00%
78.58%
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%
391
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Name of the Enterprise
Country of
Incorporation
Proportion of
Ownership Interest
Name of the Enterprise
Country of
Incorporation
Proportion of
Ownership Interest
Sr.
No.
115
116
117
118
119
120
121
122
123
124
Dronagiri Panje West Infra Limited
eDreams Edusoft Private Limited
e-Eighteen.com Limited
Ekta Entertainment Network Private Limited
Elite Cable Network Private Limited
Eminent Cable Network Private Limited
Fab Den Network Limited (Formerly known as Fab Den Network Private Limited)
Fortune (Baroda) Network Private Limited
Fun Cable Network Private Limited
Futuristic Media and Entertainment Private Limited (Formerly known as Den Futuristic Cable
Networks Private Limited)
India
India
India
India
India
India
India
India
India
India
Genesis Colors Limited
Hathway Bhawani Cabletel & Datacom Limited
125 Galaxy Den Media & Entertainment Private Limited
126 Gemini Cable Network Private Limited
127
128 Genesis La Mode Private Limited
129 Genesis Luxury Fashion Private Limited
130 GLB Body Care Private Limited
GLF Lifestyle Brands Private Limited
131
132 Glimpse Communications Private Limited
GML India Fashion Private Limited
133
134
Grab A Grub Services Private Limited
135 Greycells18 Media Limited
136 Hamleys (Franchising) Limited *
137
Hamleys Asia Limited *
138 Hamleys Global Holdings Limited *
139 Hamleys of London Limited *
140 Hamleys Toys (Ireland) Limited *
141
142 Hathway Broadband Private Limited
Hathway Cable and Datacom Limited
143
Hathway Cnet Private Limited
144
145 Hathway Digital Private Limited
146 Hathway Enjoy Cable Network Private Limited
147
148 Hathway Internet Satellite Private Limited
149 Hathway JMD Farukhabad Cable Network Private Limited
150 Hathway Kokan Crystal Cable Network Private Limited
151
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
Ideal Cables Private Limited
Independent Media Trust
IndiaCast Media Distribution Private Limited
IndiaCast UK Limited *
IndiaCast US Limited *
Indiavidual Learning Private Limited
Indiawin Sports Private Limited
Indradhanush Cable Network Private Limited
Hathway Gwalior Cable & Datacom Private Limited
Hathway Krishna Cable Private Limited
India
India
India
India
India
India
India
India
India
India
India
UK
Hong Kong
UK
UK
Ireland
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
100.00%
77.12%
67.26%
40.07%
57.57%
44.00%
40.07%
40.07%
78.58%
78.58%
40.07%
40.07%
60.45%
81.24%
68.02%
87.85%
81.24%
78.58%
81.24%
83.36%
65.61%
75.56%
75.56%
75.56%
75.56%
75.56%
49.86%
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%
78.58%
Sr.
No.
168
169
170
171
172
173
174
175
176
177
178
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 Estonia OÜ *
Jio Futuristic Digital Holdings Private Limited
Jio Haptik Technologies Limited (Formerly known as Reliance Jio Digital Services Limited)
Jio Infrastructure Management Services Limited (Formerly known as Jio Digital Media
Distribution Limited)
Jio Internet Distribution Holdings Private Limited
Jio Limited
Jio Platforms 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
Libra Cable Network Limited (Formerly known as Libra Cable Network Private Limited)
Luvley Limited *
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196 M Entertainments Private Limited
197 Mahadev Den Cable Network Private Limited
198 Mahavir Den Entertainment Private Limited
199 Maitri Cable Network Private Limited
200 Mansion Cable Network Private Limited
201 Marble Cable Network Private Limited
202 Media18 Distribution Services Limited
203 Meerut Cable Network Private Limited
204 Mindex 1 Limited
205 Model Economic Township Limited
206 Moneycontrol Dot Com India Limited
207 Mountain Cable Network Limited (Formerly known as Mountain Cable Network Private Limited)
208 Multi Channel Cable Network Private Limited
209 Multi Star Cable Network Limited (Formerly known as Multi Star Cable Network Private Limited)
210 Multitrack Cable Network Private Limited
211
212 Network18 Media & Investments Limited
213 Network18 Media Trust
214 New Emerging World Of Journalism Private Limited
215 NowFloats Technologies Private Limited
216
217
218
219
220 Radisys Convedia (Ireland) Limited *
Radiant Satellite (India) Private Limited
Radisys B.V. *
Radisys Canada Inc. *
Radisys Cayman Limited *
Nectar Entertainment Private Limited
India
India
India
India
India
India
India
Estonia
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
UK
India
India
India
India
India
India
India
India
Gibraltar
India
India
India
India
India
India
India
India
India
India
India
India
Netherlands
Canada
Cayman Islands
Ireland
37.08%
71.96%
78.58%
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%
20.44%
71.96%
40.07%
75.56%
83.17%
40.07%
40.19%
20.44%
51.86%
78.58%
73.15%
40.07%
100.00%
100.00%
67.26%
78.58%
78.58%
78.58%
40.08%
78.58%
73.15%
73.15%
75.00%
88.33%
40.07%
100.00%
100.00%
100.00%
100.00%
393
* Subsidiary Company having 31st December as reporting date.
* Subsidiary Company having 31st December as reporting date.
392
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Name of the Enterprise
Sr.
No.
Country of
Incorporation
Proportion of
Ownership Interest
Name of the Enterprise
Sr.
No.
Country of
Incorporation
Proportion of
Ownership Interest
Reliance BP Mobility Limited (Formerly known as Jio Information Solutions Limited)
Radisys Corporation *
221
222 Radisys GmbH *
223 Radisys India Private Limited
224 Radisys International LLC *
225 Radisys International Singapore Pte. Ltd. *
226 Radisys Poland sp. z o.o *
227 Radisys Spain S.L.U. *
228 Radisys Systems Equipment Trading (Shanghai) Co. Ltd. *
229 Radisys Technologies (Shenzhen) Co., Ltd. *
230 Radisys UK Limited *
231
RB Holdings Private Limited
232 RB Media Holdings Private Limited
233 RB Mediasoft Private Limited
234 Recron (Malaysia) Sdn. Bhd. *
235 Reliance 4IR Realty Development Limited
236 Reliance Ambit Trade Private Limited
237
238 Reliance Brands Holding UK Limited *
239 Reliance Brands Limited
240 Reliance Clothing India Private Limited
241
Reliance Commercial Dealers Limited
242 Reliance Comtrade Private Limited
243 Reliance Content Distribution Limited
244 Reliance Corporate IT Park Limited
245 Reliance Eagleford Upstream GP LLC *
246 Reliance Eagleford Upstream Holding LP *
Reliance Eagleford Upstream LLC *
247
248 Reliance Eminent Trading & Commercial Private Limited
249 Reliance Energy Generation and Distribution Limited
250 Reliance Ethane Holding Pte Limited
251
252 Reliance Exploration & Production DMCC *
253 Reliance GAS Lifestyle India Private Limited
254 Reliance Gas Pipelines Limited
255 Reliance Global Energy Services (Singapore) Pte. Limited
256 Reliance Global Energy Services Limited
257 Reliance Holding USA, Inc. *
258 Reliance Industrial Investments and Holdings Limited
259 Reliance Industries (Middle East) DMCC *
260 Reliance Industries Uruguay Petroquimica S.A. *
261
262 Reliance Jio Global Resources LLC *
263 Reliance Jio Infocomm Limited
264 Reliance Jio Infocomm Pte. Limited *
265 Reliance Jio Infocomm UK Limited *
266 Reliance Jio Infocomm USA Inc. *
267 Reliance Jio Media Limited
268 Reliance Jio Messaging Services Limited
269 Reliance Marcellus II LLC *
270 Reliance Marcellus LLC *
271
272 Reliance Payment Solutions Limited
273
Reliance Innovative Building Solutions Private Limited
Reliance Petro Marketing Limited
Reliance Ethane Pipeline Limited
* Subsidiary Company having 31st December as reporting date.
394
Reliance O2C Limited (Formerly known as Reliance Navi Mumbai Infra Limited)
USA
Germany
India
USA
Singapore
Poland
Spain
China
China
UK
India
India
India
Malaysia
India
India
India
UK
India
India
India
India
India
India
USA
USA
USA
India
India
Singapore
India
UAE
India
India
Singapore
UK
USA
India
UAE
Uruguay
India
USA
India
Singapore
UK
USA
India
India
USA
USA
India
India
India
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
75.56%
75.56%
94.38%
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%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
94.38%
Reliance Petroleum Retail Limited
274
275 Reliance Progressive Traders Private Limited
276 Reliance Projects & Property Management Services Limited (Formerly known as Reliance
Reliance Retail Limited
Digital Platform & Project Services Limited)
Reliance Prolific Commercial Private Limited
Reverie Language Technologies Private Limited
277
278 Reliance Prolific Traders Private Limited
279 Reliance Retail Finance Limited
280 Reliance Retail Insurance Broking Limited
281
282 Reliance Retail Ventures Limited
283 Reliance Sibur Elastomers Private Limited
284 Reliance SMSL Limited
285 Reliance Strategic Business Ventures Limited
286 Reliance Strategic Investments Limited
287 Reliance Universal Traders Private Limited
288 Reliance Vantage Retail Limited
289 Reliance Ventures Limited
290 Reliance-GrandOptical Private Limited
291
292 RIL USA, Inc. *
293 Roptonal Limited
294 Rose Entertainment Private Limited
295 RP Chemicals (Malaysia) Sdn Bhd *
296 RRB Mediasoft Private Limited
297
Saavn Inc. *
298 Saavn LLC *
299 Saavn Media Private Limited
300 SankhyaSutra Labs Private Limited
301
302 Sanmati Entertainment Private Limited
303 Scrumpalicious Limited *
304 Shopsense Retail Technologies Private Limited
305 Shree Sidhivinayak Cable Network Private Limited
306 Shri Kannan Departmental Store Private Limited
307
Sanmati DEN Cable TV Network Private Limited
Silverline Television Network Limited (Formerly known as Silverline Television Network
Private Limited)
Surajya Services Private Limited
Surela Investment And Trading Limited
Tesseract Imaging Private Limited
The Hamleys Group Limited *
The Indian Film Combine Private Limited
Trident Entertainment Private Limited
TV18 Broadcast Limited
Ulwe East Infra Limited
Ulwe North Infra Limited
Ulwe South Infra Limited
308 Sree Gokulam Starnet Communication Private Limited
309 Srishti Den Networks Limited (Formerly known as Srishti Den Networks Private Limited)
310
311
312
313
314
315
316
317
318
319
320 Ulwe Waterfront East Infra Limited
321
Ulwe Waterfront North Infra Limited
322 Ulwe Waterfront South Infra Limited
323 Ulwe Waterfront West Infra Limited
324 Ulwe West Infra Limited
325 United Cable Network (Digital) Limited (Formerly known as United Cable Network (Digital)
Private 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
USA
Cyprus
India
Malaysia
India
USA
USA
India
India
India
India
UK
India
India
India
India
India
India
India
India
India
UK
India
India
India
India
India
India
India
India
India
India
India
India
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
94.38%
94.45%
74.90%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
94.38%
81.32%
100.00%
21.27%
40.07%
100.00%
100.00%
83.35%
83.35%
83.35%
86.80%
78.58%
78.58%
75.56%
86.02%
78.58%
94.45%
40.07%
78.58%
40.07%
61.28%
100.00%
92.41%
75.56%
83.17%
78.58%
41.70%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
78.58%
395
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview 37. SIGNIFICANT ENTERPRISES CONSOLIDATED AS ASSOCIATES AND JOINT VENTURES IN ACCORDANCE WITH INDIAN
ACCOUNTING STANDARD 28 – INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
Name of the Enterprise
Country of
Incorporation
Proportion of
Ownership Interest
Sr.
No.
1
2
3
4
5
6
7
8
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
BookmyShow Live Private Limited (formerly known as Nomobo Entertainment Private Limited)
Bookmyshow SDN. BHD.
BookmyShow Venues Management Private Limited (Formerly known as Go2Space Event
Management Private Limited)
Brooks Brothers India Private Limited
Name of the Enterprise
Sr.
No.
326 UTN Cable Communications Private Limited
327 VBS Digital Distribution Network Private Limited
328 Viacom18 Media (UK) Limited
329 Viacom18 Media Private Limited
330 Viacom18 US Inc.
331
332 Vision India Network Private Limited
333 Watermark Infratech Private Limited
334 Web18 Digital Services Limited
335 Win Cable and Datacom Private Limited
Victor Cable TV Network Private Limited
9
10 Burberry India Private Limited
11
Canali India Private Limited
12 CCN DEN Network Private Limited
13 Clayfin Technologies Private Limited
14 D. E. Shaw India Securities Private Limited
15 DEN ABC Cable Network Ambarnath Private Limited
16 DEN ADN Network Private Limited
17 DEN New Broad Communication Private Limited
18 Den Satellite Network Private Limited
19 Diesel Fashion India Reliance Private Limited
20 DL GTPL Broadband Private Limited
21 DL GTPL Cabnet Private Limited
22 Dyulok Technologies Private Limited
23 Eenadu Television Private Limited
24 Ethane Crystal LLC
25 Ethane Emerald LLC
26 Ethane Opal LLC
27 Ethane Pearl LLC
28 Ethane Sapphire LLC
29 Ethane Topaz LLC
30 Fantain Sports Private Limited
Foodfesta Wellcare Private Limited
31
32 Football Sports Development Limited
33 Gaurav Overseas Private Limited
34 GenNext Ventures Investment Advisers LLP
35 GTPL Abhilash Communication Private Limited
36 GTPL Ahmedabad Cable Network Private Limited
37 GTPL Anjali Cable Network Private Limited
38 GTPL Bansidhar Telelink Private Limited
39 GTPL Bariya Television Network
40 GTPL Bawa Cable
41 GTPL Blue Bell Network Private Limited
396
Country of
Incorporation
Proportion of
Ownership Interest
Name of the Enterprise
Sr.
No.
Country of
Incorporation
Proportion of
Ownership Interest
India
India
UK
India
USA
India
India
India
India
India
71.96%
40.07%
21.27%
21.27%
21.27%
78.58%
71.96%
100.00%
73.15%
71.96%
UAE
Sri Lanka
India
Singapore
UAE
India
Malaysia
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
India
India
India
India
India
India
22.46%
22.46%
28.74%
22.46%
11.00%
28.74%
22.46%
28.74%
37.02%
29.62%
33.33%
40.07%
39.15%
50.00%
20.04%
40.07%
20.04%
39.29%
37.02%
7.15%
7.15%
22.21%
10.22%
49.00%
49.00%
49.00%
49.00%
49.00%
49.00%
21.81%
28.74%
56.13%
50.00%
50.00%
14.02%
20.48%
27.50%
14.02%
14.02%
14.02%
27.50%
42 GTPL Broadband Private Limited
43 GTPL City Channel Private Limited
44 GTPL Crazy Network
45 GTPL Dahod Television Network Private Limited
46 GTPL DCPL Private Limited
47 GTPL Deesha Cable Net Private Limited
48 GTPL Hathway Limited
49 GTPL Henish Cable Vision
50 GTPL Insight Channel Network Private Limited
51 GTPL Jay Santoshima Network Private Limited
52 GTPL Jaydeep Cable
53 GTPL Junagadh Network Private Limited
54 GTPL Jyoti Cable
55 GTPL Kaizen Infonet Private Limited
56 GTPL KCBPL Broad Band Private Limited
57 GTPL Khambhat Cable Network
58 GTPL Khusboo Video Channel
59 GTPL Kolkata Cable & Broadband Pariseva Limited
60 GTPL Leo Vision
61 GTPL Link Network Private Limited
62 GTPL Lucky Video Cable
63 GTPL Ma Bhagawati Entertainment Services
64 GTPL Media Entertainment
65 GTPL Meghana Distributors Private Limited
66 GTPL Narmada Cable Services
67 GTPL Narmada Cyberzone Private Limited
68 GTPL Parshwa Cable Network Private Limited
69 GTPL Parth World Vision
70 GTPL Sai Vision
71 GTPL Sai World Channel
72 GTPL Sharda Cable Network Private Limited
73 GTPL Shiv Cable
74 GTPL Shiv Cable
75 GTPL Shiv Cable Network
76 GTPL Shiv Network Private Limited
77 GTPL Shivshakti Network Private Limited
78 GTPL Shree Shani Cable
79 GTPL Shreenathji Communication
80 GTPL SK Network Private Limited
81 GTPL SK Vision
82 GTPL SMC Network Private Limited
83 GTPL Solanki Cable Network Private Limited
84 GTPL Sorath Telelink Private Limited
85 GTPL Space City Private Limited
86 GTPL Surat Telelink Private Limited
87 GTPL Swastik Communication
88 GTPL Tridev Cable Network
89 GTPL TV Tiger Private Limited
90 GTPL V & S Cable Private Limited
91 GTPL Vidarbha Telelink Private Limited
92 GTPL Video Badshah Private Limited
93 GTPL Video Vision Private Limited
94 GTPL Vision Services Private Limited
95 GTPL Vraj Cable
96 GTPL VVC Network Private Limited
97 GTPL World View Cable
98 GTPL World Vision
99 GTPL Zigma Vision Private Limited
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
India
India
India
India
India
India
27.50%
14.02%
13.75%
14.02%
27.50%
27.50%
27.50%
14.02%
20.47%
14.02%
14.02%
14.02%
14.02%
27.50%
14.05%
14.02%
14.02%
14.05%
14.02%
14.02%
14.02%
14.02%
14.02%
27.50%
14.02%
16.50%
15.76%
14.02%
14.02%
14.02%
14.02%
14.02%
14.02%
20.62%
14.08%
27.50%
14.02%
14.02%
14.02%
14.02%
14.02%
14.02%
14.02%
16.91%
27.50%
14.02%
14.02%
27.49%
14.02%
27.50%
14.02%
27.50%
14.02%
14.02%
14.02%
14.02%
14.02%
24.80%
397
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Name of the Enterprise
Sr.
No.
100 Gujarat Chemical Port Limited (Formerly known as Gujarat Chemical Port Terminal
Country of
Incorporation
India
Proportion of
Ownership Interest
41.80%
Company Limited)
101 Hathway Bhaskar CCN Multi Entertainment Private Limited
102 Hathway Bhawani NDS Network Private Limited
103 Hathway Cable MCN Nanded Private Limited
104 Hathway CBN Multinet Private Limited
105 Hathway CCN Entertainment (India) Private Limited
106 Hathway CCN Multinet Private Limited
107 Hathway Channel 5 Cable & Datacom Private Limited
108 Hathway Dattatray Cable Network Private Limited
109 Hathway Digital Saharanpur Cable & Datacom Private Limited
110 Hathway ICE Television Private Limited
111 Hathway Latur MCN Cable & Datacom Private Limited
112 Hathway MCN Private Limited
113 Hathway Palampur Cable Network Private Limited
114 Hathway Prime Cable & Datacom Private Limited
115 Hathway Sai Star Cable & Datacom Private Limited
116 Hathway Sonali OM Crystal Cable Private Limited
117 Hathway SS Cable & Datacom LLP
118 Hathway VCN Cablenet Private Limited
119 IBN Lokmat News Private Limited
120 Iconix Lifestyle India Private Limited
121
122 India Gas Solutions Private Limited
123 Indian Vaccines Corporation Limited
124 Jio Payments Bank Limited
125 Konark IP Dossiers Private Limited
126 Marks and Spencer Reliance India Private Limited
127 Net 9 Online Hathway Private Limited
128 NW18 HSN Holdings PLC
129 Pan Cable Services Private Limited
130 Petroleum Trust *
131 Pipeline Management Services Private Limited (Formerly known as Rutvi Project Managers
IMG Reliance Limited
Private Limited)
132 PT. Big Tree Entertainment Indonesia
133 Reliance Bally India Private Limited
134 Reliance Europe Limited
135 Reliance Industrial Infrastructure Limited
136 Reliance Services and Holdings Limited (Formerly known as Naroda Power Private Limited)
137 Reliance Sideways Private Limited
138 Reliance Paul & Shark Fashions Private Limited
139 Reliance-Grand Vision India Supply Private Limited
140 Reliance-Vision Express Private Limited
141 Ryohin-Keikaku Reliance India Private Limited
142 Scod18 Networking Private Limited
143 SpaceBound Web Labs Private Limited
144 TCO Reliance India Private Limited
145 Townscript PTE. Ltd, Singapore
146 Townscript USA, Inc.
147 TribeVibe Entertainment Private Limited
148 Ubona Technologies Private Limited
149 V&B Lifestyle India Private Limited
150 Vadodara Enviro Channel Limited
151 Vaji Communication Private Limited
152 Vay Network Services Private Limited
153 Vizianagar Citi Communications Private Limited
154 Zegna South Asia Private Limited
* Being Trust, without share capital, hence percentage holding not applicable.
398
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
Cyprus
India
India
India
Indonesia
India
UK
India
India
India
India
India
India
India
India
India
India
Singapore
USA
India
India
India
India
India
India
India
India
50.37%
25.43%
32.42%
36.70%
36.70%
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%
19.64%
46.25%
35.98%
29.77%
23.99%
-
50.00%
22.46%
37.78%
50.00%
45.43%
50.00%
37.78%
37.78%
47.19%
47.19%
37.02%
27.50%
28.74%
37.02%
22.21%
22.21%
28.48%
36.58%
34.01%
28.57%
14.02%
39.15%
14.02%
37.02%
38. ADDITIONAL INFORMATION, AS REQUIRED UNDER SCHEDULE III TO THE COMPANIES ACT, 2013, OF ENTERPRISES
CONSOLIDATED AS SUBSIDIARY/ ASSOCIATES/ JOINT VENTURES
Name of the Enterprise
PARENT
Reliance Industries Limited
SUBSIDIARIES
Indian
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
ABC Cable Network Private Limited
Adhunik Cable Network 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
Asteria Aerospace Private Limited
Augment Cable Network Private Limited
Bali Den Cable Network 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
Channels India Network Private Limited
Chennai Cable Vision Network Private Limited
Colorful Media Private Limited
Colosceum Media Private Limited
Crystal Vision Media Private Limited
C-Square Info Solutions Private Limited
Den A.F. Communication Private Limited
Den Aman Entertainment Private Limited
DEN Ambey Cable Networks Private Limited
Den Ashu Cable Limited
DEN BCN Suncity Network 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 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
Futuristic Media and Entertainment Private Limited
DEN Harsh Mann Cable Network Limited
Den Jai Ambey Vision Cable 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)
Amount
(` in crore)
As % of
consolidated
Other
Comprehensive
Income
Amount
(` in crore)
As % of
consolidated
Total
Comprehensive
Income
93.66 4,24,583.62
77.49
30,902.74
(46.26)
(7,073.82)
43.19
23,828.92
(0.00)
(0.00)
0.08
0.02
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)
0.08
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)
0.01
0.00
(0.00)
0.00
(0.00)
(0.00)
0.01
(0.00)
(0.00)
(0.17)
(0.20)
382.96
77.79
0.05
(0.31)
0.20
(0.13)
42.18
(0.04)
(0.12)
(1.34)
0.03
0.52
(1.64)
(0.19)
(1.73)
(1.32)
(2.00)
382.98
21.91
2.21
20.74
(0.06)
0.40
58.07
(0.83)
0.34
(0.11)
35.76
0.08
0.18
0.04
(0.17)
1.39
0.42
(0.05)
60.69
11.40
(0.10)
9.70
(3.04)
(3.84)
60.63
(1.68)
(0.29)
(0.00)
0.00
(0.00)
0.01
(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
(0.00)
(0.01)
-
(0.00)
(0.00)
(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)
0.02
(0.00)
0.00
(0.01)
0.28
(0.02)
2.24
(0.01)
(0.28)
(0.01)
0.19
(5.72)
(0.01)
(0.49)
-
(0.01)
(0.01)
-
0.09
(1.57)
-
-
0.00
1.76
(1.20)
(0.09)
0.16
(0.62)
(2.27)
-
(0.11)
(0.10)
(20.31)
0.05
0.97
0.83
0.05
(0.50)
(1.50)
(0.57)
(0.95)
0.75
(0.01)
(0.82)
0.61
(0.06)
8.11
(0.46)
0.18
-
-
-
0.00
-
-
-
-
(0.00)
-
(0.00)
-
-
-
-
-
-
-
-
-
0.00
0.00
-
-
-
0.00
(0.00)
(0.00)
0.00
0.00
-
-
-
-
(0.00)
-
-
(0.00)
0.00
-
(0.00)
-
-
-
0.00
-
-
-
-
0.06
-
-
-
-
(0.05)
-
(0.02)
-
-
-
-
-
-
-
-
-
0.00
0.03
-
-
-
0.00
(0.01)
(0.00)
0.00
0.00
-
-
-
-
(0.03)
-
-
(0.05)
0.02
-
(0.02)
-
-
-
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
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.04)
0.00
0.00
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
(0.01)
0.28
(0.02)
2.29
(0.01)
(0.28)
(0.01)
0.19
(5.77)
(0.01)
(0.51)
-
(0.01)
(0.01)
-
0.09
(1.57)
-
-
0.00
1.77
(1.17)
(0.09)
0.16
(0.62)
(2.27)
(0.01)
(0.11)
(0.10)
(20.31)
0.05
0.97
0.83
0.05
(0.53)
(1.50)
(0.57)
(1.00)
0.77
(0.01)
(0.84)
0.61
(0.06)
8.11
(0.46)
0.18
399
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Net Assets
i.e. Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Net Assets
i.e. Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Name of the Enterprise
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
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
96
97
98
Den Kashi Cable Network Limited
Den Kattakada Telecasting and Cable Services Limited
DEN Krishna Cable TV Network Limited
Den Maa Sharda Vision Cable Networks Limited
Den Mahendra Satellite Private Limited
Den Malabar Cable Vision Private Limited
DEN Malayalam Telenet Private Limited
Den MCN Cable Network Limited
Den Mod Max Cable Network Private Limited
Den Nashik City Cable Network Private Limited
Den Networks Limited
DEN Patel Entertainment Network Private Limited
DEN Pawan Cable Network Limited
Den Pradeep Cable Network Private Limited
DEN Prayag Cable Networks Limited
Den Premium Multilink Cable Network Private Limited
Den Prince Network Limited
Den Radiant Satelite Cable Network Private Limited
Den Rajkot City Communication Private Limited
Den Sahyog Cable Network Limited
Den Sariga Communications Private Limited
Den Satellite Cable TV Network Private Limited
Den Saya Channel Network Limited
Den Steel City Cable Network Private Limited
DEN STN Television Network Private Limited
Den Supreme Satellite Vision Private Limited
DEN Varun Cable Network Limited
DEN VM Magic Entertainment Limited
Den-Manoranjan Satellite Private Limited
Desire Cable Network Limited
Devine Cable Network Private Limited
Digital18 Media 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
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
400
(0.00)
(0.00)
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
1.51
0.00
(0.00)
(0.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(2.37)
(0.21)
3.52
1.04
0.04
(0.07)
(1.70)
(2.16)
(0.45)
(1.27)
2,719.23
0.04
(0.68)
(0.34)
0.92
(0.64)
(0.29)
0.28
(4.34)
(0.05)
(0.05)
(2.36)
1.34
(0.20)
0.34
0.93
0.10
0.23
5.30
0.00
(0.06)
0.01
6,863.86
0.79
(0.06)
(1.60)
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.04
0.05
0.05
0.05
0.05
0.00
0.01
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
(0.01)
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)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.58
2.23
0.31
(0.16)
0.02
0.50
(0.70)
1.67
(0.28)
(0.02)
86.30
0.47
(1.03)
0.52
1.30
(3.79)
0.64
(0.02)
(5.67)
0.89
0.32
(0.02)
0.42
0.64
0.81
(0.83)
-
0.32
(4.92)
0.42
0.01
-
(0.00)
(0.01)
(0.01)
(0.07)
(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)
As % of
consolidated
Other
Comprehensive
Income
-
-
0.00
-
0.00
-
-
-
0.00
-
(0.00)
-
0.00
-
-
-
-
-
-
-
-
-
0.00
-
-
(0.00)
-
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Amount
(` in crore)
-
-
0.08
-
0.00
-
-
-
0.00
-
(0.55)
-
0.00
-
-
-
-
-
-
-
-
-
0.01
-
-
(0.00)
-
-
(0.03)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
As % of
consolidated
Total
Comprehensive
Income
0.00
0.00
0.00
(0.00)
0.00
0.00
(0.00)
0.00
(0.00)
(0.00)
0.16
0.00
(0.00)
0.00
0.00
(0.01)
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)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
Amount
(` in crore)
Name of the Enterprise
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
0.58
2.23
0.39
(0.16)
0.02
0.50
(0.70)
1.67
(0.28)
(0.02)
85.75
0.47
(1.03)
0.52
1.30
(3.79)
0.64
(0.02)
(5.67)
0.89
0.32
(0.02)
0.43
0.64
0.81
(0.83)
-
0.32
(4.95)
0.42
0.01
-
(0.00)
(0.01)
(0.01)
(0.07)
(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)
Dronagiri Navghar South First Infra Limited
Dronagiri Navghar South Second Infra Limited
Dronagiri Panje East Infra Limited
Dronagiri Panje North Infra Limited
Dronagiri Panje South Infra Limited
Dronagiri Panje West Infra Limited
e-Eighteen.com Limited
eDreams Edusoft Private Limited
Ekta Entertainment Network Private Limited
Elite Cable Network Private Limited
Eminent Cable Network Private Limited
Fab Den Network Limited
99
100 Dronagiri Navghar South Infra Limited
101
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
111
112
113
114
115
116
117
118
119
120 Fortune (Baroda) Network Private Limited
Fun Cable Network Private Limited
121
122 Galaxy Den Media & Entertainment Private Limited
123 Gemini Cable Network Private Limited
124 Genesis Colors Limited
125 Genesis La Mode Private Limited
126 Genesis Luxury Fashion Private Limited
127 GLB Body Care Private Limited
128 GLF Lifestyle Brands Private Limited
129 Glimpse Communications Private Limited
130 GML India Fashion Private Limited
131
132 Greycells18 Media Limited
133 Hathway Bhawani Cabletel & Datacom Limited
134 Hathway Broadband Private Limited
135 Hathway Cable and Datacom Limited
136 Hathway Cnet Private Limited
137 Hathway Digital Private Limited
138 Hathway Enjoy Cable Network Private Limited
139 Hathway Gwalior Cable & Datacom Private Limited
140 Hathway Internet Satellite Private Limited
141
142 Hathway Kokan Crystal Cable Network Private Limited
143 Hathway Krishna Cable Private Limited
144 Hathway Mantra Cable & Datacom Private Limited
145 Hathway Media Vision Private Limited
146 Hathway Mysore Cable Network Private Limited
147 Hathway Nashik Cable Network Private Limited
148 Hathway New Concept Cable & Datacom Private Limited
149 Hathway Software Developers Private Limited
150 Hathway Space Vision Cabletel Private Limited
Grab A Grub Services Private Limited
Hathway JMD Farukhabad Cable Network Private Limited
0.00
0.00
0.00
0.00
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)
0.01
0.00
(0.00)
(0.00)
(0.00)
(0.00)
0.02
0.01
0.04
0.00
0.02
(0.00)
0.00
0.01
(0.00)
(0.00)
0.00
0.95
(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)
0.05
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
97.60
5.04
1.83
(0.02)
23.38
0.70
(0.90)
(0.82)
(0.94)
(7.66)
84.94
39.49
162.83
0.32
81.14
(0.20)
12.74
32.87
(1.52)
(0.21)
3.38
4,318.72
(0.43)
(144.04)
0.01
(0.58)
(1.63)
0.00
(2.28)
(14.59)
(18.56)
(1.20)
(19.76)
(10.40)
(3.36)
(14.74)
(1.04)
(0.00)
(0.00)
(0.00)
(0.00)
(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)
-
0.01
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.04)
0.02
(0.02)
0.00
0.01
(0.00)
(0.00)
(0.00)
(0.01)
0.01
0.00
0.04
0.00
0.16
-
(0.00)
(0.00)
-
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.01)
(0.01)
-
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
3.70
(3.20)
(0.13)
-
2.85
(0.19)
(0.09)
0.55
(0.07)
(0.96)
(16.82)
6.39
(8.78)
0.01
3.73
(0.01)
(0.52)
(0.24)
(2.12)
3.67
0.19
16.64
0.00
65.62
-
(0.00)
(0.00)
-
(1.34)
(0.71)
0.15
(1.12)
(0.38)
(0.00)
(2.51)
(2.13)
-
As % of
consolidated
Other
Comprehensive
Income
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
(0.00)
0.00
-
0.00
(0.00)
-
-
-
0.00
(0.00)
(0.00)
(0.00)
-
(0.00)
-
(0.00)
(0.00)
(0.00)
(0.00)
-
0.00
-
(0.00)
-
-
-
-
0.00
-
-
-
-
-
-
-
-
Amount
(` in crore)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.15)
(0.03)
0.01
-
0.00
(0.04)
-
-
-
0.09
(0.22)
(0.06)
(0.30)
-
(0.01)
-
(0.01)
(0.47)
(0.00)
(0.03)
-
0.04
-
(0.01)
-
-
-
-
0.26
-
-
-
-
-
-
-
-
As % of
consolidated
Total
Comprehensive
Income
(0.00)
(0.00)
(0.00)
(0.00)
(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)
-
0.01
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.03)
0.01
(0.02)
0.00
0.01
(0.00)
(0.00)
(0.00)
(0.00)
0.01
0.00
0.03
0.00
0.12
-
(0.00)
(0.00)
-
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
-
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)
3.55
(3.23)
(0.12)
-
2.85
(0.23)
(0.09)
0.55
(0.07)
(0.87)
(17.04)
6.33
(9.08)
0.01
3.72
(0.01)
(0.53)
(0.71)
(2.12)
3.64
0.19
16.68
0.00
65.61
-
(0.00)
(0.00)
-
(1.08)
(0.71)
0.15
(1.12)
(0.38)
(0.00)
(2.51)
(2.13)
-
401
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Net Assets
i.e. Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Net Assets
i.e. Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Name of the Enterprise
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
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 Futuristic Digital Holdings Private Limited
Hathway United Cables Private Limited
Ideal Cables Private Limited
Independent Media Trust
IndiaCast Media Distribution Private Limited
Indiavidual Learning Private Limited
Indiawin Sports Private Limited
Indradhanush Cable Network Private Limited
Infomedia Press Limited
ITV Interactive Media Private Limited
151
152
153
154
155
156
157
158
159
160 Jhankar Cable Network Private Limited
161
162
163
164
165
166 Reliance BP Mobility Limited
Jio Infrastructure Management Services Limited
167
Jio Internet Distribution Holdings Private Limited
168
Jio Limited
169
Jio Platforms Limited
170
Jio Television Distribution Holdings Private Limited
171
Kalamboli East Infra Limited
172
Kalamboli North First Infra Limited
173
Kalamboli North Infra Limited
174
Kalamboli North Second Infra Limited
175
Kalamboli North Third Infra Limited
176
Kalamboli South First Infra Limited
177
Kalamboli South Infra Limited
178
179
Kalamboli West Infra Limited
180 Kanhatech Solutions Limited
Kishna DEN Cable Networks Private Limited
181
Liberty Media Vision Private Limited
182
183
Libra Cable Network Limited
184 M Entertainments Private Limited
185 Mahadev Den Cable Network Private Limited
186 Mahavir Den Entertainment Private Limited
187 Maitri Cable Network Private Limited
188 Mansion Cable Network Private Limited
189 Marble Cable Network Private Limited
190 Media18 Distribution Services Limited
191 Meerut Cable Network Private Limited
192 Model Economic Township Limited
193 Moneycontrol Dot Com India Limited
194 Mountain Cable Network Limited
195 Multi Channel Cable Network Private Limited
196 Multi Star Cable Network Limited
197 Multitrack Cable Network Private Limited
198 Nectar Entertainment Private Limited
199 Network18 Media & Investments Limited
200 Network18 Media Trust
201 New Emerging World of Journalism Private Limited
202 NowFloats Technologies Private Limited
402
(0.16)
(0.00)
(0.78)
(0.00)
3,365.60
0.74
20.18
0.00
93.17
0.02
316.36
0.07
(0.67)
(0.00)
(40.39)
(0.01)
(0.42)
(0.00)
(0.57)
(0.00)
726.95
0.16
2,437.35
0.54
0.01
0.00
613.69
0.14
1,467.99
0.32
298.15
0.07
0.27
0.00
974.44
0.21
0.00
0.01
40.15 1,82,025.19
631.82
0.14
0.05
0.00
0.05
0.00
0.05
0.00
0.05
0.00
0.05
0.00
0.05
0.00
0.05
0.00
0.05
0.00
80.69
0.02
(0.56)
(0.00)
(2.27)
(0.00)
3.68
0.00
0.13
0.00
(2.10)
(0.00)
7.07
0.00
0.05
0.00
16.84
0.00
(0.24)
(0.00)
0.01
0.00
(0.88)
(0.00)
4,210.02
0.93
0.24
0.00
0.06
0.00
(0.29)
(0.00)
0.00
0.00
0.06
0.00
(0.21)
(0.00)
1,174.62
0.26
(0.01)
(0.00)
21.12
0.00
5.26
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.04)
0.14
0.00
(0.01)
-
0.00
(0.00)
(0.02)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.01
(0.00)
(0.00)
(0.00)
-
0.00
0.00
0.00
0.00
0.00
-
(0.01)
(0.02)
(0.00)
0.00
0.01
0.00
0.00
0.00
(1.18)
(0.00)
0.01
(0.03)
(0.00)
(0.00)
(0.01)
(1.38)
(16.34)
57.45
0.99
(2.65)
-
0.57
(0.07)
(8.20)
(0.00)
(0.01)
(0.04)
(1.88)
0.30
(0.04)
(0.00)
0.03
(0.07)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
5.90
(0.01)
(0.00)
(1.53)
-
0.04
1.18
0.31
1.66
0.07
-
(3.50)
(9.59)
(0.30)
0.34
2.00
0.51
0.18
0.51
(471.81)
(0.00)
2.38
(11.57)
As % of
consolidated
Other
Comprehensive
Income
-
-
-
(0.00)
(0.00)
(0.00)
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
-
-
0.00
-
-
0.00
-
0.00
-
-
0.00
(0.00)
-
-
-
-
-
-
(0.36)
-
-
0.00
Amount
(` in crore)
-
-
-
(0.26)
(0.11)
(0.02)
-
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.02)
-
-
0.01
-
-
0.00
-
0.01
-
-
0.00
(0.04)
-
-
-
-
-
-
(55.22)
-
-
0.39
As % of
consolidated
Total
Comprehensive
Income
(0.00)
(0.00)
(0.00)
(0.00)
(0.03)
0.10
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)
(0.00)
(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
-
(0.01)
(0.02)
(0.00)
0.00
0.00
0.00
0.00
0.00
(0.96)
(0.00)
0.00
(0.02)
Amount
(` in crore)
Name of the Enterprise
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
(0.00)
(0.00)
(0.01)
(1.64)
(16.45)
57.43
0.99
(2.65)
-
0.57
(0.07)
(8.20)
(0.00)
(0.01)
(0.04)
(1.88)
0.30
(0.04)
(0.00)
0.03
(0.07)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
5.88
(0.01)
(0.00)
(1.52)
-
0.04
1.18
0.31
1.67
0.07
-
(3.50)
(9.63)
(0.30)
0.34
2.00
0.51
0.18
0.51
(527.03)
(0.00)
2.38
(11.18)
Reliance Projects & Property Management Services Limited
Reliance Brands Limited
203 Petroleum Trust*
204 Radiant Satellite (India) Private Limited
205 Radisys India Private Limited
206 RB Holdings Private Limited
207 RB Media Holdings Private Limited
208 RB Mediasoft Private Limited
209 Reliance 4IR Realty Development Limited
210 Reliance Ambit Trade Private Limited
211
212 Reliance Clothing India Private Limited
Reliance Commercial Dealers Limited
213
214
Reliance Comtrade Private Limited
215 Reliance Content Distribution Limited
216 Reliance Corporate IT Park Limited
217
218 Reliance Eminent Trading & Commercial Private Limited
219 Reliance Energy Generation and Distribution Limited
220 Reliance Ethane Pipeline Limited
221 Reliance Gas Lifestyle India Private Limited
222 Reliance Gas Pipelines Limited
223 Reliance-GrandOptical Private Limited
224 Reliance Industrial Investments and Holdings Limited
225 Reliance Innovative Building Solutions Private Limited
226 Jio Haptik Technologies Limited
227 Reliance Jio Infocomm Limited
228 Reliance Jio Media Limited
229 Reliance Jio Messaging Services Limited
230 Reliance O2C Limited
231
232 Reliance Petro Marketing Limited
233 Reliance Petroleum Retail Limited
234 Reliance Progressive Traders Private Limited
235 Reliance Prolific Commercial Private Limited
236 Reliance Prolific Traders Private Limited
237 Reliance Retail Finance Limited
238 Reliance Retail Insurance Broking Limited
239 Reliance Retail Limited
240 Reliance Retail Ventures Limited
241
Reliance Services and Holdings Limited*
242 Reliance Sibur Elastomers Private Limited
243 Reliance SMSL Limited
244 Reliance Strategic Business Ventures Limited
245 Reliance Strategic Investments Limited
246 Reliance Universal Traders Private Limited
247 Reliance Vantage Retail Limited
248 Reliance Ventures Limited
249 Reverie Language Technologies Private Limited
250 Rose Entertainment Private Limited
251 RRB Mediasoft Private Limited
252 Saavn Media Private Limited
253 SankhyaSutra Labs Private Limited
254 Sanmati DEN Cable TV Network Private Limited
* Company was subsidiary for part of the year.
Reliance Payment Solutions Limited
-
(0.00)
0.03
0.00
0.08
0.09
4.07
0.20
0.01
(0.01)
0.06
0.03
1.53
2.37
0.06
0.85
3.58
0.00
0.02
0.18
0.00
5.69
0.00
0.05
37.71
0.02
0.02
0.00
0.04
0.07
0.00
0.87
0.14
0.62
0.75
0.00
4.00
1.69
-
0.43
(0.00)
2.19
0.43
0.39
0.03
0.87
0.01
0.00
0.06
1.57
0.01
(0.00)
-
(3.54)
138.66
0.10
383.39
414.09
18,472.36
914.15
28.24
(53.18)
277.89
117.96
6,949.89
10,744.94
269.05
3,845.68
16,214.69
0.00
98.99
805.77
0.01
25,813.20
11.07
246.03
1,70,955.70
82.86
86.31
0.00
160.06
318.07
0.01
3,949.77
632.04
2,818.91
3,410.55
22.15
18,115.18
7,656.23
-
1,930.77
(8.54)
9,906.85
1,936.93
1,773.51
155.67
3,927.89
38.22
0.73
293.86
7,125.12
53.42
(1.00)
(0.00)
0.00
0.05
(0.00)
0.00
(0.00)
0.09
0.00
(0.44)
(0.03)
0.00
(0.00)
(0.00)
0.89
0.74
0.01
0.01
(0.00)
(0.01)
0.13
-
0.04
(0.00)
(0.08)
13.95
(0.00)
(0.00)
(0.00)
(0.01)
0.25
(0.00)
0.01
0.00
0.00
0.01
0.01
13.89
0.02
(0.01)
(0.01)
0.01
0.02
0.58
0.01
(0.00)
0.38
(0.00)
(0.00)
(0.00)
(0.02)
0.00
(0.00)
(0.02)
0.69
21.43
(0.01)
0.01
(0.00)
34.65
0.66
(176.68)
(13.75)
0.91
(0.05)
(0.08)
356.38
296.26
4.41
2.66
(0.01)
(3.09)
51.98
-
14.51
(1.50)
(31.70)
5,561.82
(0.57)
(0.09)
(0.05)
(5.47)
97.85
(0.00)
3.32
0.37
1.52
3.70
4.51
5,539.79
8.10
(2.45)
(2.95)
5.51
9.39
229.94
2.84
(1.60)
152.33
(0.38)
(0.28)
(0.00)
(7.62)
0.21
(0.02)
As % of
consolidated
Other
Comprehensive
Income
-
-
(0.01)
-
-
-
(0.42)
-
0.00
(0.00)
(0.00)
-
-
0.05
(0.13)
-
-
-
(0.00)
0.01
-
(2.39)
-
0.00
(0.04)
-
-
-
(0.00)
0.07
-
-
-
-
-
(0.00)
(0.08)
-
-
-
(0.02)
(6.10)
-
-
-
-
(0.00)
(0.00)
-
(0.00)
(0.00)
-
Amount
(` in crore)
-
-
(1.10)
-
-
-
(63.63)
-
0.22
(0.01)
(0.18)
-
-
8.40
(19.42)
-
-
-
(0.08)
1.79
-
(366.00)
-
0.05
(6.16)
-
-
-
(0.01)
10.14
-
-
-
-
-
(0.09)
(12.90)
-
-
-
(3.40)
(932.50)
-
-
-
-
(0.43)
(0.01)
-
(0.37)
(0.20)
-
As % of
consolidated
Total
Comprehensive
Income
(0.00)
0.00
0.04
(0.00)
0.00
(0.00)
(0.05)
0.00
(0.32)
(0.02)
0.00
(0.00)
(0.00)
0.66
0.50
0.01
0.00
(0.00)
(0.01)
0.10
-
(0.64)
(0.00)
(0.06)
10.07
(0.00)
(0.00)
(0.00)
(0.01)
0.20
(0.00)
0.01
0.00
0.00
0.01
0.01
10.02
0.01
(0.00)
(0.01)
0.00
(1.67)
0.42
0.01
(0.00)
0.28
(0.00)
(0.00)
(0.00)
(0.01)
0.00
(0.00)
Amount
(` in crore)
(0.02)
0.69
20.33
(0.01)
0.01
(0.00)
(28.98)
0.66
(176.46)
(13.76)
0.74
(0.05)
(0.08)
364.78
276.83
4.41
2.66
(0.01)
(3.17)
53.77
-
(351.49)
(1.50)
(31.65)
5,555.66
(0.57)
(0.09)
(0.05)
(5.48)
107.99
(0.00)
3.32
0.37
1.52
3.70
4.42
5,526.89
8.10
(2.45)
(2.95)
2.11
(923.11)
229.94
2.84
(1.60)
152.33
(0.81)
(0.29)
(0.00)
(7.99)
0.01
(0.02)
403
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Net Assets
i.e. Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Net Assets
i.e. Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Name of the Enterprise
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
Srishti DEN Networks Limited
255 Sanmati Entertainment Private Limited
256 Shopsense Retail Technologies Private Limited
257 Shree Sidhivinayak Cable Network Private Limited
258 Shri Kannan Departmental Store Private Limited
259 Silverline Television Network Limited
260 Sree Gokulam Starnet Communication Private Limited
261
262 Surajya Services Private Limited
263 Surela Investment and Trading Limited
264 Tesseract Imaging Private Limited
265 The Indian Film Combine Private Limited
266 Trident Entertainment Private Limited
267 TV18 Broadcast Limited
268 Ulwe East Infra Limited
269 Ulwe North Infra Limited
270 Ulwe South Infra Limited
271 Ulwe Waterfront East Infra Limited
272 Ulwe Waterfront North Infra Limited
273 Ulwe Waterfront South Infra Limited
274 Ulwe Waterfront West Infra Limited
275 Ulwe West Infra Limited
276 United Cable Network (Digital) Limited
277 UTN Cable Communications Private Limited
278 VBS Digital Distribution Network Private Limited
279 Viacom18 Media Private Limited
280 Victor Cable TV Network Private Limited
281 Vision India Network Private Limited
282 Watermark Infratech Private Limited
283 Web18 Digital Services Limited
284 Win Cable and Datacom Private Limited
Foreign
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Affinity Names Inc.
Affinity USA Inc.
Aurora Algae Inc.
Ethane Crystal LLC*
Ethane Emerald LLC*
Ethane Opal LLC*
Ethane Pearl LLC*
Ethane Sapphire LLC*
Ethane Topaz LLC*
Hamleys (Franchising) Limited
Hamleys Asia Limited
Hamleys Global Holdings Limited
Hamleys of London Limited
Hamleys Toys (Ireland) Limited
Indiacast UK Limited
Indiacast US Limited
Jio Estonia OÜ
Luvley Limited
Mindex 1 Limited
Radisys B.V.
* Company was subsidiary for part of the year.
404
(0.00)
0.01
(0.00)
0.04
0.00
(0.00)
(0.00)
0.00
(0.00)
0.00
0.49
(0.00)
0.61
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0.01)
0.00
0.37
(0.00)
(0.00)
0.08
0.00
(0.00)
0.00
0.00
0.00
-
-
-
-
-
-
0.03
0.00
0.05
(0.01)
(0.02)
0.00
0.00
0.00
0.01
0.04
0.00
(0.20)
51.72
(0.62)
166.53
0.19
(1.71)
(1.71)
15.37
(0.54)
8.53
2,219.74
(0.45)
2,778.19
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
(0.12)
(23.27)
1.70
1,685.43
(0.04)
(2.06)
383.01
0.01
(19.70)
1.71
0.07
14.28
-
-
-
-
-
-
124.80
0.01
209.77
(63.30)
(76.85)
8.23
5.07
0.72
50.90
168.87
9.61
0.00
(0.00)
0.00
(0.20)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
0.00
0.05
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
0.00
0.89
0.01
-
0.00
-
(0.00)
(0.00)
-
(0.00)
0.01
0.01
0.01
0.01
0.01
0.01
0.08
(0.00)
(0.02)
(0.20)
(0.01)
0.00
0.00
0.00
0.01
0.01
0.00
0.33
(0.60)
0.94
(80.49)
(0.69)
(0.07)
(0.53)
(0.78)
(0.05)
(0.37)
1.59
0.70
21.76
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.10
(1.18)
0.79
353.54
2.06
-
0.01
-
(0.00)
(0.00)
-
(0.07)
4.65
4.64
4.56
4.59
4.53
4.66
30.09
(0.64)
(7.72)
(80.82)
(3.96)
0.94
0.91
0.32
3.86
4.30
0.24
As % of
consolidated
Other
Comprehensive
Income
-
(0.00)
-
(0.00)
-
-
(0.00)
(0.00)
-
-
-
-
(0.05)
-
-
-
-
-
-
-
-
-
-
-
(0.00)
-
-
-
-
-
-
-
-
(0.01)
(0.01)
(0.01)
(0.01)
(0.01)
(0.01)
-
-
-
-
-
0.00
0.00
-
-
-
-
Amount
(` in crore)
-
(0.03)
-
(0.29)
-
-
(0.00)
(0.00)
-
-
-
-
(6.96)
-
-
-
-
-
-
-
-
-
-
-
(0.64)
-
-
-
-
-
-
-
-
(1.11)
(1.04)
(1.09)
(1.09)
(1.03)
(1.23)
-
-
-
-
-
0.26
0.41
-
-
-
-
As % of
consolidated
Total
Comprehensive
Income
0.00
(0.00)
0.00
(0.15)
(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
0.64
0.00
-
0.00
-
(0.00)
(0.00)
-
(0.00)
0.01
0.01
0.01
0.01
0.01
0.01
0.05
(0.00)
(0.01)
(0.15)
(0.01)
0.00
0.00
0.00
0.01
0.01
0.00
Amount
(` in crore)
Name of the Enterprise
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
0.33
(0.63)
0.94
(80.78)
(0.69)
(0.07)
(0.53)
(0.78)
(0.05)
(0.37)
1.59
0.70
14.80
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.10
(1.18)
0.79
352.90
2.06
-
0.01
-
(0.00)
(0.00)
-
(0.07)
3.54
3.60
3.47
3.50
3.50
3.43
30.09
(0.64)
(7.72)
(80.82)
(3.96)
1.20
1.32
0.32
3.86
4.30
0.24
Radisys Canada Inc.
Radisys Cayman Limited
Radisys Convedia (Ireland) Limited
Radisys Corporation
Radisys GmbH
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 Brands Holding UK Limited
Reliance Eagleford Upstream GP LLC
Reliance Eagleford Upstream Holding LP
Reliance Eagleford Upstream LLC
Reliance Ethane Holding Pte Limited
Reliance Exploration & Production DMCC
Reliance Global Energy Services (Singapore) Pte. Limited
Reliance Global Energy Services Limited
Reliance Holding USA, Inc.
Reliance Industries (Middle East) DMCC
Reliance Industries Uruguay Petroquímica S.A.
Reliance Jio Global Resources LLC
Reliance Jio Infocomm Pte. Limited
Reliance Jio Infocomm UK Limited
Reliance Jio Infocomm USA, Inc.
Reliance Marcellus II LLC
Reliance Marcellus LLC
RIL USA, Inc.
Roptonal Limited
RP Chemicals (Malaysia) Sdn. Bhd.
Saavn Inc.
Saavn LLC
Scrumpalicious Limited
The Hamleys Group Limited
Viacom18 Media (UK) Limited
Viacom18 US Inc.
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
Non-Controlling Interest in all Subsidiaries
ASSOCIATES (INVESTMENT AS PER THE EQUITY METHOD)
Indian
1
2
3
4
5
6
7
8
9
Big Tree Entertainment Private Limited
BookmyShow Live Private Limited
BookmyShow Venues Management 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
0.01
0.00
0.00
(0.03)
0.00
0.00
0.00
0.00
0.00
0.00
(0.00)
0.00
0.30
0.07
0.00
1.06
1.39
0.26
0.36
0.08
0.01
(5.06)
0.26
0.00
0.01
0.21
0.01
0.06
0.00
2.36
0.21
0.07
0.19
0.03
0.03
0.01
(0.00)
(0.00)
(0.00)
(1.77)
0.06
(0.00)
(0.00)
-
0.00
0.00
0.00
0.00
0.01
23.63
0.07
1.36
(135.13)
4.81
2.35
0.53
1.26
1.04
12.85
(8.08)
8.48
1,337.87
313.35
0.21
4,786.93
6,319.14
1,196.72
1,631.15
375.68
38.43
(22,936.35)
1,172.93
0.78
53.32
949.28
60.75
266.27
0.29
10,699.18
954.63
321.41
882.59
139.84
116.72
32.51
(13.86)
(4.39)
(9.42)
(8,015.51)
294.61
(2.94)
(0.05)
-
22.66
0.40
3.16
0.29
66.34
0.00
-
(0.00)
0.16
0.00
(0.25)
0.00
0.00
0.00
(0.00)
(0.00)
0.00
0.14
(0.01)
(0.00)
(3.84)
(0.00)
0.83
(0.19)
0.28
0.00
(4.80)
0.02
0.00
0.01
0.07
0.01
0.01
(0.00)
(0.42)
0.17
0.00
0.07
(0.00)
0.04
0.01
(0.00)
(0.00)
(0.00)
(1.32)
(0.10)
(0.03)
(0.00)
(0.01)
0.00
(0.00)
(0.00)
0.00
0.00
0.93
-
(0.50)
65.75
0.64
(101.37)
0.16
0.04
0.16
(1.62)
(1.41)
0.10
54.03
(4.58)
(0.00)
(1,530.71)
(0.08)
330.43
(74.95)
113.04
1.59
(1,914.90)
7.35
0.07
4.00
29.41
2.26
2.33
(0.43)
(167.61)
68.61
0.31
25.97
(0.00)
16.63
4.23
(0.47)
(0.11)
(0.16)
(525.67)
(38.72)
(13.76)
(0.10)
(2.85)
0.35
(0.04)
(0.66)
0.69
0.65
As % of
consolidated
Other
Comprehensive
Income
0.00
-
-
-
-
-
-
-
-
-
-
-
(0.09)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
(0.01)
0.12
(0.00)
-
-
-
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
Amount
(` in crore)
0.50
-
-
-
-
-
-
-
-
-
-
-
(13.33)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.14)
(0.81)
18.09
(0.51)
-
-
-
(0.07)
(0.00)
(0.00)
(0.01)
(0.08)
As % of
consolidated
Total
Comprehensive
Income
0.00
-
(0.00)
0.12
0.00
(0.18)
0.00
0.00
0.00
(0.00)
(0.00)
0.00
0.07
(0.01)
(0.00)
(2.77)
(0.00)
0.60
(0.14)
0.20
0.00
(3.47)
0.01
0.00
0.01
0.05
0.00
0.00
(0.00)
(0.30)
0.12
0.00
0.05
(0.00)
0.03
0.01
(0.00)
(0.00)
(0.00)
(0.92)
(0.07)
(0.02)
(0.00)
(0.01)
0.00
(0.00)
(0.00)
0.00
0.00
Amount
(` in crore)
1.43
-
(0.50)
65.75
0.64
(101.37)
0.16
0.04
0.16
(1.62)
(1.41)
0.10
40.70
(4.58)
(0.00)
(1,530.71)
(0.08)
330.43
(74.95)
113.04
1.59
(1,914.90)
7.35
0.07
4.00
29.41
2.26
2.33
(0.43)
(167.61)
68.61
0.31
25.97
(0.00)
16.63
4.23
(0.47)
(0.25)
(0.96)
(507.58)
(39.24)
(13.76)
(0.10)
(2.85)
0.28
(0.04)
(0.66)
0.69
0.57
405
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Net Assets
i.e. Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Net Assets
i.e. Total Assets minus
Total Liabilities
Share in
Profit or Loss
Share in
Other Comprehensive
Income
Share in
Total Comprehensive
Income
Name of the Enterprise
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
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
GenNext Ventures Investment Advisers LLP
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 City Channel Private Limited
GTPL Crazy Network
GTPL Dahod Television Network Private Limited
GTPL DCPL Private Limited
GTPL Deesha Cable Net Private Limited
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
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-Sharda Cable Network Private Limited
GTPL Shiv Cable
GTPL Shiv Cable
GTPL Shiv Cable Network
406
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)
0.00
(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
0.00
0.00
0.00
(0.00)
0.00
(0.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(0.00)
(0.00)
0.00
0.00
0.02
0.49
0.73
375.35
0.25
(0.32)
0.28
0.19
0.45
0.17
0.26
0.05
0.00
0.01
(0.39)
21.83
(0.00)
0.30
0.12
3.21
0.16
380.12
(0.00)
0.08
(0.71)
0.00
0.02
0.10
0.81
1.13
(0.04)
0.02
10.51
0.02
0.20
0.09
(0.03)
0.03
(1.74)
0.01
0.19
0.07
0.04
0.07
0.02
0.24
(0.07)
(0.00)
0.00
0.20
0.00
0.00
(0.00)
0.07
(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)
(0.01)
(0.00)
0.03
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
0.01
(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
0.25
(1.25)
29.49
(2.15)
(0.90)
(0.01)
(0.01)
(0.12)
0.24
(0.11)
(0.07)
(0.02)
(0.00)
0.05
1.30
(0.00)
(0.05)
(0.02)
(2.21)
(0.90)
13.31
(0.02)
(0.05)
(0.40)
(0.01)
(0.00)
(0.02)
0.05
(0.19)
(0.00)
(0.01)
5.61
(0.03)
(0.11)
(0.01)
(0.02)
(0.01)
(0.72)
(0.00)
(0.13)
(0.03)
(0.01)
0.00
(0.01)
(0.05)
(0.00)
(0.01)
(0.01)
(0.02)
As % of
consolidated
Other
Comprehensive
Income
-
-
(0.00)
0.00
-
-
-
-
-
-
-
-
-
-
-
(0.00)
-
-
-
-
-
(0.00)
-
-
-
-
-
-
-
0.00
-
-
0.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Amount
(` in crore)
-
-
(0.01)
0.15
-
-
-
-
-
-
-
-
-
-
-
(0.02)
-
-
-
-
-
(0.19)
-
-
-
-
-
-
-
0.00
-
-
0.01
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
As % of
consolidated
Total
Comprehensive
Income
0.00
0.00
(0.00)
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)
(0.00)
0.02
(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
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
Amount
(` in crore)
Name of the Enterprise
As % of
consolidated
Net Assets
Amount
(` in crore)
As % of
consolidated
Profit or Loss
Amount
(` in crore)
0.00
0.25
(1.25)
29.64
(2.15)
(0.90)
(0.01)
(0.01)
(0.12)
0.24
(0.11)
(0.07)
(0.02)
(0.00)
0.05
1.28
(0.00)
(0.05)
(0.02)
(2.21)
(0.90)
13.12
(0.02)
(0.05)
(0.40)
(0.01)
(0.00)
(0.02)
0.05
(0.19)
(0.00)
(0.01)
5.62
(0.03)
(0.11)
(0.01)
(0.02)
(0.01)
(0.72)
(0.00)
(0.13)
(0.03)
(0.01)
0.00
(0.01)
(0.05)
(0.00)
(0.01)
(0.01)
(0.02)
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
GTPL V&S Cable Private Limited
GTPL Vidarbha Telelink Private Limited
GTPL Video Badshah Private Limited
GTPL Video Vision Private Limited
GTPL Vision Services Private Limited
GTPL Vraj Cable
GTPL VVC Network Private Limited
GTPL World View Cable
GTPL World Vision
GTPL Zigma Vision Private Limited
Gujarat Chemical Port Limited
Hathway VCN Cablenet Private Limited
Indian Vaccines Corporation Limited
Konark IP Dossiers Private Limited
Pan Cable Services Private Limited
Petroleum Trust
Reliance Industrial Infrastructure Limited
Reliance Services and Holdings Limited
Scod18 Networking Private Limited
SpaceBound Web Labs Private Limited
Tribevibe Entertainment Private Limited
Vadodara Enviro Channel Limited
Vaji Communication Private Limited
Vay Network Services Private Limited
Vizianagar Citi Communications Private Limited
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
Foreign
1
2
3
4
5
6
7
8
9
10
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 pte Ltd, Singapore
Townscript USA, Inc.
0.00
0.00
0.00
0.00
0.00
0.00
(0.00)
0.00
0.00
(0.00)
0.00
0.00
(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
-
5.98
0.04
3.59
(0.00)
(0.00)
(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
0.02
0.05
0.03
0.03
(0.05)
0.10
0.27
(0.10)
0.13
0.09
(0.70)
(0.12)
(0.92)
0.03
0.26
0.67
(0.02)
(0.03)
0.01
0.05
(0.08)
429.61
-
0.19
0.69
-
27,118.81
189.80
16,275.10
(14.73)
(1.94)
(0.48)
0.01
0.11
0.00
(0.26)
0.01
(0.88)
17.50
(4.50)
0.27
-
0.79
38.71
-
(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)
0.25
0.00
(0.00)
0.00
-
-
0.01
0.00
(0.01)
(0.00)
(0.00)
0.00
(0.00)
(0.01)
(0.00)
(0.00)
(0.00)
(0.01)
(0.01)
(0.00)
-
(0.00)
0.00
-
0.00
(0.03)
(0.00)
(0.01)
(0.02)
(0.06)
(0.01)
(0.10)
(0.01)
(0.03)
0.05
(0.01)
(0.02)
(1.07)
(0.15)
0.04
(0.27)
0.14
(1.22)
(0.08)
(0.03)
(0.00)
(0.01)
(0.09)
100.12
0.00
(0.16)
0.26
-
-
3.61
0.28
(2.83)
(1.86)
(0.50)
0.00
(0.26)
(3.59)
(0.11)
(0.15)
(0.71)
(2.49)
(4.39)
(0.45)
-
(1.93)
1.78
-
0.00
As % of
consolidated
Other
Comprehensive
Income
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.00)
-
-
-
-
166.51
(0.01)
(9.62)
-
-
-
0.00
-
-
-
-
0.00
0.01
(0.00)
(0.00)
-
(0.00)
-
-
-
Amount
(` in crore)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.08)
-
-
-
-
25,463.85
(2.11)
(1,471.39)
-
-
-
0.00
-
-
-
-
0.02
1.62
(0.01)
(0.02)
-
(0.40)
-
-
-
As % of
consolidated
Total
Comprehensive
Income
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
0.00
(0.00)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
0.18
0.00
(0.00)
0.00
-
46.15
0.00
(2.67)
(0.01)
(0.00)
(0.00)
0.00
(0.00)
(0.01)
(0.00)
Amount
(` in crore)
(0.03)
(0.00)
(0.01)
(0.02)
(0.06)
(0.01)
(0.10)
(0.01)
(0.03)
0.05
(0.01)
(0.02)
(1.07)
(0.15)
0.04
(0.27)
0.14
(1.22)
(0.08)
(0.03)
(0.00)
(0.01)
(0.09)
100.05
0.00
(0.16)
0.26
-
25,463.85
1.50
(1,471.11)
(2.83)
(1.86)
(0.50)
0.00
(0.26)
(3.59)
(0.11)
(0.00)
(0.00)
(0.00)
(0.01)
(0.00)
-
(0.00)
0.00
-
0.00
(0.15)
(0.68)
(0.87)
(4.39)
(0.47)
-
(2.33)
1.78
-
0.00
407
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Name of the Enterprise
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)
Amount
(` in crore)
As % of
consolidated
Other
Comprehensive
Income
As % of
consolidated
Total
Comprehensive
Income
Amount
(` in crore)
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:
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
JOINT VENTURES ( 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 Marks and Spencer Reliance India Private Limited
30
31
32
33
34
35
36
37
38
39
40
41
Foreign
1
2
3
4
5
6
Net 9 Online Hathway Private Limited
Reliance Bally India Private Limited
Reliance Paul & Shark Fashions Private Limited
Reliance Sideways Private Limited
Reliance-Grand Vision India Supply Private Limited
Reliance-Vision Express Private Limited
Pipeline Management Services Private Limited
Ryohin-Keikaku Reliance India Private Limited
TCO Reliance India Private Limited
Ubona Technologies Private Limited
V&B Lifestyle India Private Limited
Zegna South Asia Private Limited
Ethane Crystal LLC
Ethane Emerald LLC
Ethane Opal LLC
Ethane Pearl LLC
Ethane Sapphire LLC
Ethane Topaz LLC
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
2019-20
-
-
-
-
-
-
2019-20
-
-
-
-
(` in crore)
2018-19
4,426
19
74
55
93
4,667
(` in crore)
2018-19
2,942
348
9
3,299
40. EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have recommended dividend of ` 6.50 per fully paid up equity share of ` 10/- each for the financial year 2019-20.
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 30, 2020.
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
0.01
0.03
0.00
0.03
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
0.04
0.04
0.04
0.04
0.04
0.04
15.11
33.25
15.38
1.47
16.65
40.97
-
0.33
0.46
1.25
4.03
7.05
-
-
-
-
-
5.40
-
-
10.89
1.10
-
14.28
38.79
156.93
6.47
152.18
242.23
3.07
4.47
5.18
0.00
5.26
6.35
1.76
17.26
13.58
4.88
7.35
5.43
196.38
188.77
177.12
188.01
175.39
176.92
0.00
0.01
0.00
(0.00)
(0.01)
(0.04)
-
0.00
0.00
0.00
0.00
0.00
(0.00)
0.00
(0.00)
(0.00)
(0.00)
0.00
(0.00)
(0.00)
0.00
0.00
(0.00)
(0.00)
0.01
0.02
(0.01)
0.00
(0.01)
0.00
(0.00)
(0.00)
(0.00)
(0.00)
(0.02)
0.00
(0.01)
(0.00)
(0.00)
(0.00)
0.00
0.01
0.01
0.01
0.01
0.01
0.01
0.93
3.66
1.10
(0.14)
(2.00)
(14.87)
-
0.01
0.12
0.41
0.02
0.43
(0.00)
0.25
(0.00)
(0.00)
(0.06)
0.72
(0.05)
(0.00)
0.05
0.79
(0.10)
(0.81)
3.17
7.34
(5.94)
0.90
(2.74)
0.02
(0.31)
(0.94)
(0.00)
(0.27)
(7.88)
1.26
(2.01)
(0.10)
(0.39)
(0.76)
0.30
5.16
5.30
5.27
5.88
5.35
5.73
(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)
(0.01)
(0.00)
(0.01)
(0.01)
-
(0.02)
-
(0.00)
(0.02)
-
0.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.07)
-
(0.05)
-
(0.01)
2.14
-
(0.00)
(0.00)
-
-
(0.14)
(0.04)
(0.00)
-
(0.01)
(0.00)
-
(0.38)
(0.39)
(0.42)
(1.22)
(0.55)
(1.17)
0.00
0.01
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)
0.01
0.01
(0.01)
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
0.01
0.01
0.01
0.01
0.93
3.66
1.09
(0.14)
(2.00)
(14.89)
-
0.01
0.12
0.41
0.02
0.43
(0.00)
0.25
(0.00)
(0.00)
(0.06)
0.72
(0.05)
(0.00)
0.05
0.79
(0.10)
(0.88)
3.17
7.29
(5.94)
0.89
(0.60)
0.02
(0.31)
(0.94)
(0.00)
(0.27)
(8.02)
1.23
(2.01)
(0.10)
(0.40)
(0.77)
0.30
4.78
4.91
4.85
4.65
4.79
4.56
408
409
Naye India Ka Naya JoshCONSOLIDATEDNotesto the Consolidated Financial Statements for the year ended 31st March, 2020Reliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Annexure “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES/ ASSOCIATES/ JOINT VENTURES AS PER COMPANIES ACT,
2013
PART “A”: SUBSIDIARIES
Name of Subsidiary Company
Sr.
No.
The date since
which Subsidiary
was acquired
Reporting
Currency
Equity Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue
from
Operations /
Total Income
Profit
Before
Taxation
Provision
for
Taxation
Profit After
Taxation
Other
Compre-
hensive
Income
(` in crore)
Foreign Currencies in Million
% of
Sharehold-
ing*
Total Com-
prehensive
Income
Pro-
posed
Divi-
dend
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
Affinity Names Inc.#
Affinity USA Inc.#
Asteria Aerospace Private Limited
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@
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@
eDreams Edusoft 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
26.03.2012
15.07.2019
12.12.2019
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
01.02.2019
29.01.2019
24.01.2019
31.01.2019
28.01.2019
28.01.2019
04.02.2019
16.12.2019
07.09.2018
07.09.2018
07.09.2018
07.09.2018
07.09.2018
INR
USD
INR
USD
INR
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
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
0.07
0.01
0.07
0.01
0.08
497.27
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
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.19
12.57
12.00
17.50
1.57
89.94
1.64
0.23
0.00
0.00
42.10
(482.99)
(67.66)
18.95
(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)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
4.85
72.37
27.49
145.33
(1.25)
(8.80)
1.71
0.24
0.07
0.01
43.61
14.35
2.01
27.68
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.04
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
5.63
140.17
168.61
331.06
0.34
134.62
-
-
-
-
1.43
0.07
0.01
6.94
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.59
55.23
129.12
168.23
0.02
53.48
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
52.56
-
65.90
-
0.15
-
-
-
-
1.14
0.29
0.04
12.41
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4.18
53.03
133.72
174.35
0.00
71.61
(0.00)
(0.00)
-
-
(5.73)
(0.07)
(0.01)
(0.15)
(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)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(3.20)
(16.82)
8.47
(6.75)
0.01
7.45
-
-
-
-
(0.01)
-
-
(0.06)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.08
2.03
0.00
3.72
(0.00)
(0.00)
-
-
(5.72)
(0.07)
(0.01)
(0.09)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.01)
(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)
(3.20)
(16.82)
6.39
(8.78)
0.01
3.73
-
-
-
-
(0.05)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.03)
(0.22)
(0.06)
(0.30)
-
(0.01)
(0.00)
(0.00)
-
-
(5.77)
(0.07)
(0.01)
(0.09)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.01)
(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)
(3.23)
(17.04)
6.33
(9.08)
0.01
3.72
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
100.00
74.57
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
100.00
100.00
100.00
100.00
100.00
100.00
100.00
90.46
72.73
100.00
99.44
100.00
100.00
As on 31.12.2019 1USD = 71.385, 1GBP = 94.185, 1EUR = 80.095, 1SGD = 53.0525, 1HKD = 9.1675, 1MYR = 17.4525, 1CNY = 10.2396, 1PLN = 18.735
As on 31.03.2020 1USD = 75.665, 1GBP = 93.5025, 1EUR = 82.77, 1SGD = 53.025, 1HKD = 9.76, 1MYR = 17.515
*
#
@
Representing aggregate % of voting power held by the Company and/or its subsidiaries.
Company having 31st December as reporting date.
Financial information is for a period of 15 months.
410
Sr.
No.
43
44
45
Name of Subsidiary Company
GML India Fashion Private Limited
Grab A Grub Services Private Limited
Hamleys (Franchising) Limited#
46
Hamleys Asia Limited#
The date since
which Subsidiary
was acquired
07.09.2018
07.03.2019
16.07.2019
16.07.2019
47
Hamleys Global Holdings Limited#
16.07.2019
48
Hamleys of London Limited#
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
Hamleys Toys (Ireland) Limited#
Indiavidual Learning Private Limited
Indiawin Sports Private Limited
Jio Estonia OÜ#
Jio Haptik Technologies Limited^
Jio Infrastructure Management Services
Limited
Jio Limited
Jio Payments Bank Limited
Jio Platforms 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
Luvley Limited#
M Entertainments Private Limited
Mindex 1 Limited
Model Economic Township Limited
New Emerging World of Journalism Private
Limited
NowFloats Technologies Private Limited
Radisys B.V.#
Radisys Canada Inc.#
Radisys Cayman Limited#
Radisys Convedia (Ireland) Limited#
16.07.2019
16.07.2019
11.06.2018
07.04.2010
22.11.2018
22.09.2014
04.09.2017
15.11.2019
10.11.2016
15.11.2019
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
16.07.2019
17.04.2018
21.05.2018
09.10.2006
26.11.2018
11.12.2019
11.12.2018
11.12.2018
11.12.2018
11.12.2018
Reporting
Currency
Equity Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue
from
Operations /
Total Income
Profit
Before
Taxation
Provision
for
Taxation
Profit After
Taxation
Other
Compre-
hensive
Income
(` in crore)
Foreign Currencies in Million
% of
Sharehold-
ing*
Total Com-
prehensive
Income
Pro-
posed
Divi-
dend
INR
INR
INR
GBP
INR
HKD
INR
GBP
INR
GBP
INR
GBP
INR
INR
INR
EUR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
GBP
INR
INR
GBP
INR
INR
INR
INR
EUR
INR
USD
INR
USD
INR
USD
4.99
0.06
0.00
0.00
0.00
0.00
94.19
10.00
18.83
2.00
0.00
0.00
0.54
2.65
0.40
0.05
43.50
0.01
0.01
232.00
4,961.30
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
75.00
0.00
0.00
0.01
0.00
0.00
97.00
0.04
0.20
0.24
0.03
0.00
0.00
0.00
0.00
0.00
0.00
7.75
32.80
124.80
13.25
0.01
0.01
115.58
12.27
(82.13)
(8.72)
(76.85)
(8.16)
92.64
313.71
0.32
0.04
202.53
0.26
0.00
(14.62)
1,77,063.89
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
5.69
50.90
5.40
0.12
168.87
18.06
4,113.02
21.08
5.06
9.37
1.17
23.63
3.31
0.07
0.01
1.36
0.19
55.74
42.73
167.46
17.78
2.02
2.20
584.61
62.07
1,273.66
135.23
33.06
3.51
416.44
334.20
0.96
0.12
257.14
1.38
0.01
253.38
1,93,462.98
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
83.19
61.78
6.56
0.33
170.27
18.21
7,186.24
22.20
22.89
10.97
1.37
25.98
3.64
0.07
0.01
3.28
0.46
43.00
9.86
42.66
4.53
2.01
2.19
374.84
39.80
1,336.96
141.95
109.91
11.67
323.27
17.84
0.24
0.03
11.11
1.11
0.00
36.00
11,437.79
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.50
10.88
1.16
0.20
1.40
0.15
2,976.22
1.08
17.63
1.36
0.17
2.35
0.33
-
-
1.92
0.27
-
9.29
-
-
-
-
407.54
43.27
-
-
-
-
71.64
238.04
-
-
4.36
-
-
159.80
1,70,879.93
-
-
-
-
-
-
-
-
75.63
-
-
-
-
-
-
-
17.15
4.81
0.60
-
-
-
-
3.00
0.42
41.20
59.52
89.95
9.55
4.67
5.09
-
-
448.32
47.60
-
-
12.41
378.02
4.65
0.58
8.14
4.00
-
14.50
4.60
-
-
-
-
-
-
-
-
5.75
8.10
0.86
0.02
5.05
0.54
77.06
0.01
22.29
4.57
0.57
9.99
1.40
-
-
-
-
(0.84)
(0.19)
35.88
3.81
(0.64)
(0.70)
(7.72)
(0.82)
(92.40)
(9.81)
(3.96)
(0.42)
(22.49)
73.14
0.32
0.04
(31.70)
0.40
(0.00)
1.29
0.04
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
5.90
3.67
0.39
-
4.77
0.51
(9.78)
(0.06)
(11.57)
0.32
0.04
0.79
0.11
-
-
(0.50)
(0.07)
(0.32)
0.05
5.79
0.62
-
-
-
-
(11.58)
(1.23)
-
-
(6.15)
15.69
-
-
-
0.10
-
-
0.01
-
-
-
-
-
-
-
-
-
(0.19)
(0.02)
-
0.47
0.05
(0.19)
(2.44)
-
0.08
0.01
(0.14)
(0.02)
-
-
-
-
(0.52)
(0.24)
30.09
3.19
(0.64)
(0.70)
(7.72)
(0.82)
(80.82)
(8.58)
(3.96)
(0.42)
(16.34)
57.45
0.32
0.04
(31.70)
0.30
(0.00)
1.29
0.03
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
5.90
3.86
0.41
-
4.30
0.46
(9.59)
2.38
(11.57)
0.24
0.03
0.93
0.13
-
-
(0.50)
(0.07)
(0.01)
(0.47)
-
-
-
-
-
-
-
-
-
-
(0.11)
(0.02)
-
-
0.05
-
-
(0.02)
-
-
-
-
-
-
-
-
-
(0.02)
-
-
-
-
-
(0.04)
-
0.39
-
-
0.50
0.07
-
-
-
-
(0.53)
(0.71)
30.09
3.19
(0.64)
(0.70)
(7.72)
(0.82)
(80.82)
(8.58)
(3.96)
(0.42)
(16.45)
57.43
0.32
0.04
(31.65)
0.30
(0.00)
1.27
0.03
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
5.88
3.86
0.41
-
4.30
0.46
(9.63)
2.38
(11.18)
0.24
0.03
1.43
0.20
-
-
(0.50)
(0.07)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3.93
0.42
-
-
-
-
-
-
-
-
-
-
-
As on 31.12.2019 1USD = 71.385, 1GBP = 94.185, 1EUR = 80.095, 1SGD = 53.0525, 1HKD = 9.1675, 1MYR = 17.4525, 1CNY = 10.2396, 1PLN = 18.735
As on 31.03.2020 1USD = 75.665, 1GBP = 93.5025, 1EUR = 82.77, 1SGD = 53.025, 1HKD = 9.76, 1MYR = 17.515
*
#
^
@
Representing aggregate % of voting power held by the Company and/or its subsidiaries.
Company having 31st December as reporting date.
Formerly known as Reliance Jio Digital Services Limited.
Financial information is for a period of 15 months.
100.00
82.41
100.00
100.00
100.00
100.00
100.00
85.25
100.00
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
100.00
75.00
88.33
100.00
100.00
100.00
100.00
411
Naye India Ka Naya JoshCONSOLIDATEDReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Annexure “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES/ ASSOCIATES/ JOINT VENTURES AS PER COMPANIES ACT, 2013
Name of Subsidiary Company
Sr.
No.
The date since
which Subsidiary
was acquired
Reporting
Currency
Equity Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue
from
Operations /
Total Income
Profit
Before
Taxation
Provision
for
Taxation
Profit After
Taxation
Other
Compre-
hensive
Income
(` in crore)
Foreign Currencies in Million
% of
Sharehold-
ing*
Total Com-
prehensive
Income
Pro-
posed
Divi-
dend
Name of Subsidiary Company
Sr.
No.
The date since
which Subsidiary
was acquired
Reporting
Currency
Equity Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue
from
Operations /
Total Income
Profit
Before
Taxation
Provision
for
Taxation
Profit After
Taxation
Other
Compre-
hensive
Income
(` in crore)
Foreign Currencies in Million
% of
Sharehold-
ing*
Total Com-
prehensive
Income
Pro-
posed
Divi-
dend
77
Radisys Corporation#
78
79
80
Radisys GmbH#
Radisys India Private Limited
Radisys International LLC#
11.12.2018
11.12.2018
24.12.2018
11.12.2018
81
Radisys International Singapore Pte. Ltd.#
11.12.2018
82
Radisys Poland sp. z o.o#
83
Radisys Spain S.L.U.#
84
Radisys Systems Equipment Trading
(Shanghai) Co. Ltd.#
11.12.2018
11.12.2018
11.12.2018
85
Radisys Technologies (Shenzhen) Co. Ltd.#
11.12.2018
86
Radisys UK Limited#
87
88
89
90
91
92
93
94
95
96
97
98
Recron (Malaysia) Sdn. Bhd.#
Reliance 4IR Realty Development Limited^
Reliance Ambit Trade Private Limited
Reliance Brands Holding UK Limited#
Reliance Brands Limited
Reliance BP Mobility Limited**
Reliance Clothing India Private Limited
Reliance Commercial Dealers Limited
Reliance Comtrade Private Limited
Reliance Content Distribution Limited
Reliance Corporate IT Park Limited
Reliance Projects & Property Management
Services Limited##
11.12.2018
20.07.2007
15.04.2019
31.03.2009
26.06.2019
12.10.2007
23.03.2015
26.09.2013
10.01.2017
31.03.2009
04.09.2017
30.03.2009
19.06.2019
99
Reliance Eagleford Upstream GP LLC#
17.06.2010
100
Reliance Eagleford Upstream Holding LP#
17.06.2010
101
Reliance Eagleford Upstream LLC#
16.06.2010
102
103
Reliance Eminent Trading & Commercial
Private Limited
Reliance Energy Generation and
Distribution Limited
104
Reliance Ethane Holding Pte Limited^^
105
Reliance Ethane Pipeline Limited
31.03.2009
22.07.2010
04.09.2014
18.06.2019
INR
USD
INR
EUR
INR
INR
USD
INR
SGD
INR
PLN
INR
EUR
INR
CNY
INR
CNY
INR
GBP
INR
RM
INR
INR
INR
GBP
INR
INR
INR
INR
INR
INR
INR
INR
INR
USD
INR
USD
INR
USD
INR
INR
INR
USD
INR
535.39
75.00
2.16
0.27
0.21
39.33
5.51
0.00
0.00
1.26
0.67
0.00
0.00
3.56
3.48
42.27
41.28
1.79
0.19
947.65
542.99
100.00
1.00
338.50
35.94
101.08
0.09
0.05
15.00
1.00
0.05
238.00
100.00
(670.52)
(93.93)
2.65
0.33
138.45
(36.98)
(5.18)
0.53
0.10
0.00
0.00
1.04
0.13
9.29
9.07
(50.35)
(49.17)
6.69
0.71
390.22
223.59
18,372.36
913.15
(25.15)
(2.67)
(72.84)
298.06
(53.23)
262.89
116.96
6,949.84
10,506.94
169.05
0.43
0.06
23,186.85
3,248.14
23,187.42
3,248.22
10.00
(0.22)
(0.03)
(18,399.92)
(2,577.56)
(16,868.28)
(2,363.00)
3,835.68
484.42
67.86
6.17
0.77
210.62
2.36
0.33
2.12
0.40
1.56
0.83
1.68
0.21
13.23
12.92
78.27
76.44
9.04
0.96
2,866.36
1,642.38
20,134.35
922.07
655.09
69.55
3,124.85
298.76
51.55
565.22
118.07
6,949.90
31,301.94
30,767.99
0.21
0.03
6,261.89
877.20
6,319.14
885.22
4,366.19
619.55
86.79
1.36
0.17
71.96
0.01
-
1.59
0.30
0.30
0.16
0.64
0.08
0.38
0.37
86.35
84.33
0.56
0.06
1,528.49
875.80
1,661.99
7.93
341.74
36.28
3,096.61
0.61
104.73
287.33
0.11
0.01
20,557.00
30,498.94
-
-
1,474.96
206.62
-
-
520.52
43.90
6.15
-
-
7.76
-
-
-
-
-
-
-
-
-
-
-
-
0.85
0.09
-
-
10,427.64
135.59
322.40
34.23
1,048.45
296.57
-
2.31
-
6,949.87
-
11.42
0.21
0.03
-
-
6,319.07
885.21
50.00
738.98
103.52
7.53
0.94
261.62
0.36
0.05
3.40
0.64
0.52
0.28
2.08
0.26
3.37
3.29
5.14
5.02
3.30
0.35
5,744.25
3,291.36
221.85
6.58
-
-
1,058.76
1.80
29.58
530.16
-
-
12,399.71
14,232.07
-
-
915.44
128.24
31.12
4.36
43.47
65.46
9.17
0.88
0.11
29.55
(101.37)
(14.20)
0.16
0.03
0.06
0.03
0.16
0.02
(1.62)
(1.58)
(1.41)
(1.38)
0.19
0.02
84.64
48.50
46.32
0.66
(5.65)
(0.60)
(206.53)
(1.48)
(13.75)
0.71
(0.05)
(0.08)
438.56
391.81
(0.00)
(0.00)
(1,530.71)
(214.43)
(0.08)
(0.01)
4.41
(0.29)
(0.04)
0.24
0.03
8.12
-
-
-
-
0.02
0.01
-
-
-
-
-
-
0.09
0.01
30.61
17.54
11.67
-
(1.07)
(0.11)
(29.85)
0.40
-
(0.20)
-
-
82.18
95.56
65.75
9.21
0.64
0.08
21.43
(101.37)
(14.20)
0.16
0.03
0.04
0.02
0.16
0.02
(1.62)
(1.58)
(1.41)
(1.38)
0.10
0.01
54.03
30.96
34.65
0.66
(4.58)
(0.49)
(176.68)
(1.88)
(13.75)
0.91
(0.05)
(0.08)
356.38
296.26
-
-
-
-
-
-
-
(0.00)
(0.00)
(1,530.71)
(214.43)
(0.08)
(0.01)
4.41
1.25
16,213.44
16,214.73
0.04
16,211.51
33.82
3.07
0.41
2.66
1,177.88
155.67
0.01
18.84
2.49
(0.01)
1,196.79
158.17
0.01
0.07
0.01
0.01
1,177.42
155.61
-
330.58
43.69
-
330.43
43.67
(0.01)
-
-
-
330.43
43.67
(0.01)
-
-
-
-
(1.10)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(13.33)
(7.64)
(63.63)
-
-
-
0.22
-
(0.01)
(0.18)
-
-
8.40
(19.42)
-
-
-
-
-
-
-
-
-
-
-
65.75
9.21
0.64
0.08
20.33
(101.37)
(14.20)
0.16
0.03
0.04
0.02
0.16
0.02
(1.62)
(1.58)
(1.41)
(1.38)
0.10
0.01
40.70
23.32
(28.98)
0.66
(4.58)
(0.49)
(176.46)
(1.88)
(13.76)
0.74
(0.05)
(0.08)
364.78
276.83
(0.00)
(0.00)
(1,530.71)
(214.43)
(0.08)
(0.01)
4.41
2.66
330.43
43.67
(0.01)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50.47
28.92
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
100.00
100.00
Representing aggregate % of voting power held by the Company and/or its subsidiaries.
Company having 31st December as reporting date.
Formerly known as Dhraviance Realty Limited.
As on 31.12.2019 1USD = 71.385, 1GBP = 94.185, 1EUR = 80.095, 1SGD = 53.0525, 1HKD = 9.1675, 1MYR = 17.4525, 1CNY = 10.2396, 1PLN = 18.735
As on 31.03.2020 1USD = 75.665, 1GBP = 93.5025, 1EUR = 82.77, 1SGD = 53.025, 1HKD = 9.76, 1MYR = 17.515
*
#
^
^^ Dividend amount for USD 40.31 MM is paid in the month of August, 2019
**
## Formerly known as Reliance Digital Platform & Project Services Limited.
Formerly known as Jio Information Solutions Limited.
412
106
Reliance Exploration & Production DMCC#
06.12.2006
107
108
109
110
111
112
113
Reliance GAS Lifestyle India Private Limited
Reliance Gas Pipelines Limited
Reliance Global Energy Services
(Singapore) Pte. Limited
09.08.2017
26.11.2012
18.08.2008
Reliance Global Energy Services Limited
20.06.2008
Reliance-GrandOptical Private Limited
Reliance Holding USA, Inc.#
Reliance Industrial Investments and
Holdings Limited
17.03.2008
29.03.2010
30.12.1988
114
Reliance Industries (Middle East) DMCC#
11.05.2005
115
116
117
118
119
Reliance Industries Uruguay Petroquímica
S.A.#
Reliance Innovative Building Solutions
Private Limited
Reliance Jio Global Resources LLC#
Reliance Jio Infocomm Limited
Reliance Jio Infocomm Pte. Limited#
21.08.2017
30.03.2015
15.01.2015
17.06.2010
01.02.2013
120
Reliance Jio Infocomm UK Limited#
30.07.2013
121
Reliance Jio Infocomm USA, Inc.#
122
123
Reliance Jio Media Limited
Reliance Jio Messaging Services Limited
124
Reliance Marcellus II LLC#
125
Reliance Marcellus LLC#
126
127
128
129
130
131
132
133
134
135
136
137
138
Reliance O2C Limited^@
Reliance Payment Solutions Limited
Reliance Petro Marketing Limited
Reliance Petroleum Retail 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
05.06.2013
02.01.2015
12.09.2013
28.06.2010
29.03.2010
24.01.2019
07.09.2007
31.03.2009
21.06.2019
31.03.2009
31.03.2009
31.03.2009
20.02.2007
20.11.2006
20.11.2006
24.04.2007
21.02.2012
27.11.2007
INR
USD
INR
INR
INR
USD
INR
GBP
INR
INR
USD
INR
INR
USD
INR
USD
INR
INR
USD
INR
INR
USD
INR
GBP
INR
USD
INR
INR
INR
USD
INR
USD
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
342.58
47.99
100.00
373.00
8.93
1.18
28.05
3.00
0.05
12,521.29
1,754.05
147.50
1,275.15
178.63
0.71
0.10
64.69
0.00
0.00
45,000.00
923.72
129.40
56.51
6.00
275.19
38.55
86.01
97.33
3,785.62
530.31
28,018.68
3,925.01
0.05
115.00
0.05
0.01
10.00
1.00
10.00
68.12
4.00
4,990.40
6,000.00
1,929.53
0.05
1,288.57
180.51
(1.01)
432.77
366.75
48.47
10.38
1.11
(0.04)
(35,457.64)
(4,967.10)
25,665.70
(102.22)
(14.32)
0.07
0.01
(53.62)
53.32
7.47
1,25,955.70
25.56
3.58
4.24
0.45
(8.92)
(1.25)
(3.15)
(11.02)
(3,785.33)
(530.27)
(17,319.50)
(2,426.21)
(0.05)
45.06
318.02
(0.00)
3,939.77
631.04
2,808.91
3,342.43
18.15
13,124.78
1,656.23
1.24
(8.59)
1,730.52
242.42
127.96
3,533.46
5,670.94
749.48
194.86
20.84
0.02
17,383.75
2,435.21
37,991.72
3,269.58
458.02
1.07
0.15
23.26
58.54
8.20
2,41,705.20
1,295.42
181.47
96.63
10.26
280.47
39.29
102.12
86.46
0.29
0.04
11,124.85
1,558.43
0.04
179.23
887.67
0.01
4,013.73
639.58
2,928.26
15,062.98
34.69
35,565.91
7,728.14
4,824.39
474.45
99.37
13.92
28.97
2,727.69
5,295.26
699.83
156.43
16.73
0.01
40,320.10
5,648.26
12,178.52
2,096.65
293.71
0.29
0.04
12.18
5.22
0.73
70,749.50
346.14
48.49
35.88
3.81
14.20
1.99
19.26
0.15
-
-
425.67
59.63
0.04
19.17
569.60
0.00
63.96
7.54
109.36
11,652.43
12.54
17,450.73
71.91
2,893.62
482.99
-
-
9.28
46.74
-
-
172.51
18.45
-
17,319.79
2,426.25
23,717.65
2,833.56
396.94
-
-
-
-
-
2,489.35
-
-
-
-
123.65
17.32
-
0.36
-
-
-
-
-
100.91
233.13
-
0.00
-
-
111.91
20.89
578.24
7,638.87
30.90
6.34
-
-
44.95
737.00
87,265.43
11,533.13
21.04
2.25
-
131.99
18.49
1,259.47
4,759.24
666.70
2.14
0.30
1.74
60.96
8.54
54,315.53
347.72
48.71
209.18
22.21
187.17
26.22
0.13
0.07
(0.00)
(0.00)
680.01
95.26
-
17.64
14,126.29
-
49.50
7.06
28.55
366.60
27.49
1,30,367.36
163.15
53.27
2,455.91
(74.95)
(10.50)
(3.37)
79.36
118.79
15.70
1.59
0.17
-
(1,914.90)
(268.25)
38.26
7.35
1.03
0.14
0.02
(1.50)
4.00
0.56
7,494.51
29.70
4.16
2.73
0.29
4.07
0.57
(0.57)
(0.09)
(0.43)
(0.06)
(167.61)
(23.48)
(0.05)
(5.47)
126.92
(0.00)
3.32
0.37
1.52
25.19
6.03
7,423.42
10.59
0.67
3.03
-
-
(0.28)
27.38
5.75
0.76
-
-
-
-
-
23.75
-
-
0.07
0.01
-
-
-
1,932.69
0.29
0.04
0.47
0.05
1.74
0.24
-
-
-
-
-
-
-
-
29.07
-
-
-
-
21.49
1.52
1,883.63
2.49
3.62
(2.48)
(74.95)
(10.50)
(3.09)
51.98
113.04
14.94
1.59
0.17
-
(1,914.90)
(268.25)
14.51
7.35
1.03
0.07
0.01
(1.50)
4.00
0.56
5,561.82
29.41
4.12
2.26
0.24
2.33
0.33
(0.57)
(0.09)
(0.43)
(0.06)
(167.61)
(23.48)
(0.05)
(5.47)
97.85
(0.00)
3.32
0.37
1.52
3.70
4.51
5,539.79
8.10
(2.95)
5.51
-
-
(0.08)
1.79
-
-
-
-
-
-
-
(366.00)
-
-
-
-
-
-
-
(6.16)
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.01)
10.14
-
-
-
-
-
(0.09)
(12.90)
-
-
(3.40)
(74.95)
(10.50)
(3.17)
53.77
113.04
14.94
1.59
0.17
-
(1,914.90)
(268.25)
(351.49)
7.35
1.03
0.07
0.01
(1.50)
4.00
0.56
5,555.66
29.41
4.12
2.26
0.24
2.33
0.33
(0.57)
(0.09)
(0.43)
(0.06)
(167.61)
(23.48)
(0.05)
(5.48)
107.99
(0.00)
3.32
0.37
1.52
3.70
4.42
5,526.89
8.10
(2.95)
2.11
As on 31.12.2019 1USD = 71.385, 1GBP = 94.185, 1EUR = 80.095, 1SGD = 53.0525, 1HKD = 9.1675, 1MYR = 17.4525, 1CNY = 10.2396, 1PLN = 18.735
As on 31.03.2020 1USD = 75.665, 1GBP = 93.5025, 1EUR = 82.77, 1SGD = 53.025, 1HKD = 9.76, 1MYR = 17.515
*
#
^
@
Representing aggregate % of voting power held by the Company and/or its subsidiaries.
Company having 31st December as reporting date.
Formerly known as Reliance Navi Mumbai Infra Limited.
Financial information is for a period of 15 months.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.93
94.63
74.90
100.00
413
Naye India Ka Naya JoshCONSOLIDATEDReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Annexure “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES/ ASSOCIATES/ JOINT VENTURES AS PER COMPANIES ACT, 2013
Name of Subsidiary Company
The date since
which Subsidiary
was acquired
Reporting
Currency
Equity Share
Capital
Other Equity
Total
Assets
Total
Liabilities
Investments
Revenue
from
Operations /
Total Income
Profit
Before
Taxation
Provision
for
Taxation
Profit After
Taxation
Other
Compre-
hensive
Income
(` in crore)
Foreign Currencies in Million
% of
Sharehold-
ing*
Total Com-
prehensive
Income
Pro-
posed
Divi-
dend
Sr.
No.
139
140
141
142
143
144
Reliance Strategic Business Ventures
Limited
Reliance Strategic Investments Limited
Reliance Universal Traders Private Limited
Reliance Vantage Retail Limited
Reliance Ventures Limited
Reverie Language Technologies Private
Limited
145
RIL USA, Inc.#
21.06.2019
28.12.2001
31.03.2009
27.12.2007
07.10.1999
22.03.2019
26.02.2009
146
RP Chemicals (Malaysia) Sdn. Bhd.#
11.02.2016
147
Saavn Inc.#
148
Saavn LLC#
149
150
Saavn Media Private Limited
SankhyaSutra Labs Private Limited
151
Scrumpalicious Limited#
152
153
154
155
156
Shopsense Retail Technologies Private
Limited
Shri Kannan Departmental Store Private
Limited
Surajya Services Private Limited
Surela Investment and Trading Limited
Tesseract Imaging Private Limited
157
The Hamleys Group Limited#
The Indian Film Combine Private Limited
158
159 Ulwe East Infra Limited@
160 Ulwe North Infra Limited@
Ulwe South Infra Limited@
161
162 Ulwe Waterfront East Infra Limited@
163 Ulwe Waterfront North Infra Limited@
164 Ulwe Waterfront South Infra Limited@
165 Ulwe Waterfront West Infra Limited@
166 Ulwe West Infra Limited@
05.04.2018
05.04.2018
05.04.2018
12.03.2019
16.07.2019
13.08.2019
03.03.2020
09.05.2019
07.05.2012
07.05.2019
16.07.2019
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
INR
INR
INR
INR
INR
INR
INR
USD
INR
RM
INR
USD
INR
USD
INR
INR
INR
GBP
INR
INR
INR
INR
INR
INR
GBP
INR
INR
INR
INR
INR
INR
INR
INR
INR
100.00
9,806.85
15,297.32
5,390.47
10,681.67
319.65
27.69
18.29
9.39
(932.50)
(923.11)
2.02
10.00
0.56
2.69
0.02
21.42
3.00
2,747.27
1,574.14
0.00
0.00
1,419.92
198.91
0.07
0.11
0.00
0.00
1.74
1,934.91
1,763.51
155.11
3,925.20
38.20
933.21
130.73
(1,864.68)
(1,068.43)
139.84
19.59
(1,303.20)
(182.56)
7,125.05
53.32
32.51
3.45
49.98
4,783.44
1,978.66
160.43
3,939.87
46.16
1,819.03
254.82
1,021.76
585.45
139.84
19.59
170.61
23.90
7,469.71
56.15
38.67
4.11
57.73
2,846.51
205.15
4.76
11.98
7.94
864.40
121.09
139.17
79.74
-
-
53.89
7.55
344.59
2.73
6.16
0.65
6.01
206.09
-
-
1,168.06
5.25
-
-
-
-
139.84
19.59
-
-
1,837.03
-
-
-
-
349.25
3.70
3.99
231.88
5.49
12,441.48
1,742.87
526.32
301.57
-
-
153.62
21.52
1.78
2.64
10.64
1.13
5.95
193.83
0.46
0.70
191.93
(0.38)
70.89
9.93
26.35
15.10
(0.00)
(0.00)
16.63
2.33
(7.63)
0.21
5.27
0.56
(1.11)
(36.11)
(2.38)
2.30
39.60
-
2.28
0.32
0.38
0.22
-
-
-
-
(0.01)
-
1.04
0.11
(0.50)
229.94
2.84
(1.60)
152.33
(0.38)
68.61
9.61
25.97
14.88
(0.00)
(0.00)
16.63
2.33
(7.62)
0.21
4.23
0.45
(0.60)
-
-
-
-
(0.43)
-
-
-
-
-
-
-
-
(0.37)
(0.20)
-
-
(0.03)
229.94
2.84
(1.60)
152.33
(0.81)
68.61
9.61
25.97
14.88
(0.00)
(0.00)
16.63
2.33
(7.99)
0.01
4.23
0.45
(0.63)
8.49
158.04
327.82
161.29
-
371.65
(78.11)
2.38
(80.49)
(0.29)
(80.78)
0.03
0.05
0.01
12.42
1.32
6.90
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
15.34
(0.59)
8.52
(26.28)
(2.79)
2,212.84
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
17.02
21.52
8.93
269.84
28.65
2,868.64
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
1.64
22.07
0.40
283.70
30.12
648.90
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-
5.13
-
228.02
24.21
63.65
-
-
-
-
-
-
-
-
0.98
0.30
0.02
-
-
0.58
-
-
-
-
-
-
-
-
(0.97)
(0.05)
(0.37)
(0.47)
(0.05)
2.14
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.19)
(0.00)
-
-
-
0.55
-
-
-
-
-
-
-
-
(0.78)
(0.05)
(0.37)
(0.47)
(0.05)
1.59
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
(0.78)
(0.05)
(0.37)
(0.47)
(0.05)
1.59
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.00
88.24
100.00
100.00
100.00
81.32
100.00
100.00
100.00
100.00
94.48
85.62
100.00
86.02
100.00
61.28
100.00
90.00
100.00
83.17
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
As on 31.12.2019 1USD = 71.385, 1GBP = 94.185, 1EUR = 80.095, 1SGD = 53.0525, 1HKD = 9.1675, 1MYR = 17.4525, 1CNY = 10.2396, 1PLN = 18.735
As on 31.03.2020 1USD = 75.665, 1GBP = 93.5025, 1EUR = 82.77, 1SGD = 53.025, 1HKD = 9.76, 1MYR = 17.515
*
#
@
Representing aggregate % of voting power held by the Company and/or its subsidiaries.
Company having 31st December as reporting date.
Financial information is for a period of 15 months.
The above statement also indicates performance and financial position of each of the subsidiaries.
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 Jio Limited
33 Kalamboli East Infra Limited
34 Kalamboli North First Infra Limited
35 Kalamboli North Infra Limited
36 Kalamboli North Second Infra Limited
37 Kalamboli North Third Infra Limited
38 Kalamboli South First Infra Limited
39 Kalamboli South Infra Limited
40 Kalamboli West Infra Limited
41
42 Reliance O2C Limited
43 Reliance Petroleum Retail Limited
44 Ulwe East Infra Limited
45 Ulwe North Infra Limited
46 Ulwe South Infra Limited
47 Ulwe Waterfront East Infra Limited
48 Ulwe Waterfront North Infra Limited
49 Ulwe Waterfront South Infra Limited
50 Ulwe Waterfront West Infra Limited
51 Ulwe West Infra Limited
Reliance Ethane Pipeline Limited
414
415
Naye India Ka Naya JoshCONSOLIDATEDReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Annexure “A”
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARIES/ ASSOCIATES/ JOINT VENTURES AS PER COMPANIES ACT, 2013
PART “B”: ASSOCIATES AND JOINT VENTURES
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associates and Joint Ventures
Name of the Subsidiaries which have ceased to be subsidiary/ liquidated/ sold/ merged during the year
Name of Associates/Joint Ventures
Sr.
No.
Sr.
No.
Name of the Companies
Ethane Crystal LLC
Ethane Emerald LLC
Ethane Opal LLC
Ethane Pearl LLC
Ethane Sapphire LLC
Ethane Topaz LLC
Reliance Aromatics and Petrochemicals Limited
Reliance Chemicals Limited
Reliance Energy and Project Development Limited
1
2
3
4
5
6
7
8
9
10 Reliance Lifestyle Holdings Limited
Reliance Polyolefins Limited
11
Reliance Services and Holdings Limited (Formerly known as Naroda Power Private Limited)
12
Reliance Universal Enterprises Limited
13
Reliance World Trade Private Limited
14
Rhea Retail Private Limited
15
ASSOCIATES & JOINT VENTURES
Gujarat Chemical Port Limited#
1
Indian Vaccines Corporation Limited
2
Reliance Europe Limited
3
Reliance Industrial Infrastructure Limited
4
Pipeline Management Services Private Limited^
5
India Gas Solutions Private Limited
6
Football Sports Development Limited
7
IMG Reliance Limited
8
Vadodara Enviro Channel Limited
9
Alok Industries Limited
10
Balaji Telefilms Limited
11
Jio Digital Fibre Private Limited
12
Reliance Jio Infratel Private Limited
13
Jamnagar Utilities & Power Private Limited
14
Latest
audited
Balance
Sheet
Date
The date on
which the
Associate
or Joint
Venture
was
associated
or acquired
Shares of Associate/Joint Ventures
held by the Company on the year end
No.
Extent
of
Holding
%*
Amount of
Investment
in Associ-
ates/Joint
Venture
(` in crore)
Profit/Loss
for the year
Not Con-
sidered in
Consoli-
dation
Consid-
ered in
Consoli-
dation
(` in
crore)
Net-worth
attribut-
able to
Share-
holding as
per latest
audited
Balance
Sheet
(` in
crore)
Description
of how there
is Significant
Influence
Reason
why the
Associate/
Joint Venture
is not
consolidated
64,29,20,000
01.04.2006
31.03.2019
62,63,125
27.03.1989
31.03.2019
11,08,500
10.06.1993
31.12.2019
68,60,064
19.05.1994
31.03.2020
5,00,000
29.03.2019
31.03.2019
1,50,00,000
26.08.2019
31.03.2020
10,80,141
07.08.2019
31.03.2020
5,33,60,074
07.08.2019
31.03.2020
14,302
31.03.2019
01.04.2019
83,33,33,333
31.03.2019 28.02.2020
22.08.2017
31.03.2019
2,52,00,000
31.03.2019 2,49,54,43,338
31.03.2019
06.05.2019 1,05,35,00,000
31.03.2019
52,00,000
07.05.2018
31.03.2019
318.81
41.80%
64.29
2.91
0.61
33.33%
60.20
3.93 50.00%
168.22
16.30
45.43%
0.50
0.50 50.00%
6.48
15.00 50.00%
108.02
134.38
47.26%
99.18
201.23 50.00%
28.57%
13.32
37.70% (5,510.59)
189.75
24.92%
20.01
48.46%
128.24
49.00%
0.52
0.40 26.00%
0.01
250.00
95.13
249.54
105.35
100.12
(0.16)
1.78
3.58
1.26
(5.94)
(14.87)
7.34
0.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Note-A
Note-A
Note-A
Note-A
Note-A
Note-A
Note-A
Note-A
Note-A
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Note-B
Note-B
Note-B
Note-B
Note-C
*Representing aggregate % of voting power held by the company
#Formerly known as Gujarat Chemical Port Terminal Company Limited
^Formerly known as Rutvi Project Managers Private Limited
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 and joint ventures.
As per our Report of even date
For and on behalf of the Board
For D T S & Associates LLP
Chartered Accountants
(Registration No.142412W/ W100595)
For S R B C & CO LLP
Chartered Accountants
(Registration No.324982E/E300003)
T P Ostwal
Partner
Membership No. 030848
Vikas Kumar Pansari
Partner
Membership No. 093649
K. Sethuraman
Company Secretary
Alok Agarwal
Chief Financial Officer
Mumbai
Date: April 30, 2020
Srikanth Venkatachari
Joint Chief Financial Officer
Savithri Parekh
Joint Company Secretary
Chairman and Managing Director
Executive Directors
Non-Executive Directors
M.D. Ambani
N.R. Meswani
H.R. Meswani
P.M.S. Prasad
P.K. Kapil
Nita M. Ambani
Y.P. Trivedi
Prof. Dipak C. Jain
Dr. R.A. Mashelkar
Adil Zainulbhai
Raminder Singh Gujral
Dr. Shumeet Banerji
Arundhati Bhattacharya
K.V. Chowdary
416
417
Naye India Ka Naya JoshCONSOLIDATEDReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Notice
NOTICE is hereby given that the Forty-
third Annual General Meeting (Post-IPO)
of the members of Reliance Industries
Limited will be held on Wednesday,
July 15, 2020 at 02:00 p.m. IST through
Video Conferencing (“VC”)/ Other Audio-
Visual Means (“OAVM”), 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,
2020 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, 2020 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)
b)
“RESOLVED THAT the audited
financial statement of the
Company for the financial year
ended March 31, 2020 and the
reports of the Board of Directors
and Auditors thereon, as circulated
to the members, be and are
hereby considered and adopted.”
“RESOLVED THAT the audited
consolidated financial statement
of the Company for the financial
year ended March 31, 2020
and the report of Auditors
thereon, as circulated to the
members, be and are hereby
considered and adopted.”
2. To declare a dividend on equity shares
for the financial year ended
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 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, and a pro-rata
dividend of ` 1.625 on each of the
partly paid-up Rights Equity Shares
418
of the Company, as recommended
by the Board of Directors, be and
is hereby declared for the financial
year ended March 31, 2020 and the
same be paid out of the profits of the
Company for the financial year ended
March 31, 2020.”
3. To appoint Shri Hital R. Meswani,
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 in accordance
with the provisions of Section 152
and other applicable provisions of
the Companies Act, 2013, Shri Hital
R. Meswani (DIN: 00001623), who
retires by rotation at this meeting be
and is hereby appointed as a Director
of the Company.”
4. To appoint Shri P.M.S. Prasad, 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 in accordance
with the provisions of Section 152
and other applicable provisions of
the Companies Act, 2013, Shri P.M.S.
Prasad (DIN: 00012144), who retires
by rotation at this meeting be and
is hereby appointed as a Director
of the Company.”
SPECIAL BUSINESS
5. To re-appoint Shri Hital R. Meswani
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 an
Ordinary 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 Hital R. Meswani
(DIN: 00001623) 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
4, 2020 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 appoint Shri K. V. Chowdary 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 in accordance with
the provisions of Section 152 read
with other applicable provisions of
the Companies Act, 2013 (“the Act”)
and the Companies (Appointment and
Qualification of Directors) Rules, 2014
(including any statutory modification(s)
or re-enactment(s) thereof, for the time
being in force), Shri K. V. Chowdary
(DIN: 08485334), who was appointed
as an additional director in accordance
with the provisions of Section 161(1) of
the Act and the Articles of Association
of the Company and who holds office
up to the date of this meeting and in
respect of whom the Company has
received a notice in writing under
Section 160 of the Act from a member
proposing his candidature for the office
of Director, be and is hereby appointed
as a Director of the Company;
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 ratify the remuneration of Cost
Auditors for the financial year ending
March 31, 2021 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 in accordance with
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, 2021,
be and is hereby ratified.”
By Order of the Board of Directors
K. Sethuraman
Group Company Secretary and
Chief Compliance Officer
Mumbai, June 20, 2020
Registered Office:
3rd Floor, Maker Chambers IV, 222,
Nariman Point,
Mumbai 400 021
CIN: L17110MH1973PLC019786
Website: www.ril.com
E-mail: investor.relations@ril.com
Tel.: +91 22 3555 5000
Fax: +91 22 2204 2268
NOTES:
1. Considering the present Covid-19
Company commend their respective
re-appointments.
pandemic, the Ministry of Corporate
Affairs (“MCA”) has vide its circular
dated May 5, 2020 read together
with circulars dated April 8, 2020 and
April 13, 2020 (collectively referred
to as “MCA Circulars”) permitted
convening the Annual General Meeting
(“AGM” / “Meeting”) through Video
Conferencing (“VC”) or Other Audio
Visual Means (“OAVM”), without the
physical presence of the members at
a common venue. In accordance with
the MCA Circulars, provisions of the
Companies Act, 2013 (‘the Act’) and the
Securities and Exchange Board of India
(Listing Obligations and Disclosure
Requirements) Regulations, 2015
(“SEBI Listing Regulations”), the AGM
of the Company is being held through
VC / OAVM. The deemed venue for
the AGM shall be the Registered Office
of the Company.
2. A statement pursuant to Section 102(1)
of the Act, relating to the Special
Business to be transacted at the AGM
is annexed hereto.
3. Generally, 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. Since this AGM is being
held through VC / OAVM pursuant
to the MCA Circulars, physical
attendance of members has been
dispensed with. Accordingly, the
facility for appointment of proxies by
the members will not be available
for the AGM and hence the Proxy
Form and Attendance Slip are not
annexed hereto.
4. Since the AGM will be held through VC/
OAVM, the route map of the venue of
the Meeting is not annexed hereto.
5.
In terms of the provisions of Section
152 of the Act, Shri Hital R. Meswani
and Shri P.M.S. Prasad, Directors,
retire by rotation at the Meeting.
Human Resources, Nomination
and Remuneration Committee
and the Board of Directors of the
Shri Hital R. Meswani and Shri P.M.S.
Prasad 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
Nikhil R. Meswani, Executive Director,
being related to Shri Hital R. Meswani,
may be deemed to be interested in
the resolution set out at Item No. 3 of
the Notice. The other relatives of Shri
Hital R. Meswani and relatives of Shri
P.M.S. Prasad may be deemed to be
interested in the resolutions set out
at Item Nos. 3 and 4 of the Notice,
respectively, to the extent of their
shareholding interest, if any, in the
Company. Save and except the above,
none of the Directors / Key Managerial
Personnel of the Company / their
relatives are, in any way, concerned or
interested, financially or otherwise, in
the Ordinary Business set out under
Item Nos. 1 to 4 of the Notice.
6. Details of Directors retiring by rotation /
seeking appointment /
re-appointment at this
Meeting are provided in the
“Annexure” to the Notice.
DISPATCH OF ANNUAL REPORT
THROUGH ELECTRONIC MODE:
7.
In compliance with the MCA Circulars
and SEBI Circular dated May 12, 2020,
Notice of the AGM along with the
Annual Report 2019-20 is being sent
only through electronic mode to those
Members whose email addresses
are registered with the Company/
Depositories. Members may note
that the Notice and Annual Report
2019-20 will also be available on the
Company’s website www.ril.com,
websites of the Stock Exchanges,
i.e., BSE Limited and National Stock
Exchange of India Limited at www.
bseindia.com and www.nseindia.com
respectively, and on the website of
Company’s Registrar and Transfer
Agent, KFin Technologies Private
Limited (“KFinTech”) at https://
evoting.karvy.com
419
Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
8. For receiving all communication
c) Members who would like to
express their views or ask
questions during the AGM may
register themselves by logging on
to https://emeetings.kfintech.
com and clicking on the ‘Speaker
Registration’ option available
on the screen after log in. The
Speaker Registration will be open
during Wednesday, July 8, 2020 to
Monday, July 13, 2020. Only those
members who are registered will
be allowed to express their views
or ask questions. The Company
reserves the right to restrict the
number of questions and number
of speakers, depending upon
availability of time as appropriate
for smooth conduct of the AGM.
d) Members will be allowed to attend
the AGM through VC / OAVM on
first come, first served basis.
e) Facility to join the meeting shall be
opened thirty minutes before the
scheduled time of the AGM and
shall be kept open throughout the
proceedings of the AGM.
f) Members who need assistance
before or during the AGM,
can contact KFinTech on
emeetings@kfintech.com or call on
toll free numbers 1800-425-8998 /
1800-345-4001 . Kindly quote your
name, DP ID-Client ID / Folio no.
and E-voting Event Number in all
your communications.
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 AGM.
11. Members attending the AGM through
VC / OAVM shall be reckoned
for the purpose of quorum under
Section 103 of the Act.
12. Members of the Company under the
category of Institutional Investors
are encouraged to attend and
vote at the AGM.
(including Annual Report) from the
Company electronically:
a) Members holding shares in physical
mode and who have not registered
/ updated their email address
with the Company are requested
to register / update the same by
writing to the Company with details
of folio number and attaching a
self-attested copy of PAN card
at investor.relations@ril.com or
to KFinTech at
rilinvestor@kfintech.com
b) Members holding shares in
dematerialised mode are
requested to register / update
their email addresses with the
relevant Depository Participant.
PROCEDURE FOR JOINING THE
AGM THROUGH VC / OAVM:
9. The Company will provide VC /
OAVM facility to its Members for
participating at the AGM.
a) Members will be able to attend
the AGM through VC / OAVM or
view the live webcast at https://
emeetings.kfintech.com by using
their e-voting login credentials.
Members are requested to follow
the procedure given below:
i.
ii.
iii.
iv.
Launch internet browser
(chrome/firefox/safari) by
typing the URL: https://
emeetings.kfintech.com
Enter the login credentials
(i.e., User ID and password
for e-voting).
After logging in, click on
“Video Conference” option
Then click on camera icon
appearing against AGM event
of Reliance Industries Limited,
to attend the Meeting.
b) Members who do not have User
ID and Password for e-voting or
have forgotten the User ID and
Password may retrieve the same
by following the procedure given
in the E-voting instructions.
420
PROCEDURE FOR REMOTE
E-VOTING AND E-VOTING
AT THE AGM:
13. Pursuant to the provisions of Section
108 and other applicable provisions, if
any, of the Companies Act, 2013 read
with the Companies (Management
and Administration) Rules, 2014, as
amended, and Regulation 44 of SEBI
Listing Regulations, the Company
is providing to its members facility
to exercise their right to vote on
resolutions proposed to be passed at
AGM by electronic means (“e-voting”).
Members may cast their votes
remotely, using an electronic voting
system on the dates mentioned herein
below (“remote e-voting’’).
Further, the facility for voting through
electronic voting system will also be
made available at the Meeting (“Insta
Poll”) and members attending the
Meeting who have not cast their vote(s)
by remote e-voting will be able to vote
at the Meeting through Insta Poll.
The Company has engaged the
services of KFinTech as the agency to
provide e-voting facility.
The manner of voting remotely
by members holding shares in
dematerialized mode, physical
mode and for members who
have not registered their email
addresses is provided in the
instructions given below.
The remote e-voting facility
will be available during the
following voting period:
Commencement of
remote e-voting:
End of remote
e-voting:
9:00 a.m. on
Saturday, July 11,
2020
5:00 p.m. on
Tuesday, July 14,
2020
The remote e-voting will not be allowed
beyond the aforesaid date and time
and the remote e-voting module shall
be forthwith disabled by KFinTech
upon expiry of the aforesaid period.
Voting rights of a member /
beneficial owner (in case of
electronic shareholding) shall be
in proportion to his share in the
paid-up equity share capital of the
Company as on the cut-off date, i.e.,
Wednesday, July 8, 2020.
iv. Any person who becomes a member
of the Company after despatch of the
Notice of the Meeting and holding
shares as on the cut-off date may
obtain the User ID and password
from KFinTech in the manner as
mentioned below:
The Board of Directors of the Company
has appointed Shri Mehul Modi, a
Practising Chartered Accountant,
Partner, Deloitte Haskins & Sells
LLP, Chartered Accountants or
failing him Shri Vishal Agarwal, a
Practising Chartered Accountant,
Partner, Deloitte Haskins & Sells LLP,
Chartered Accountants, as Scrutiniser
to scrutinise the remote e-voting
and Insta Poll process in a fair and
transparent manner and they have
communicated their willingness to be
appointed and will be available for
the said purpose.
Information and instructions
relating to e-voting are as under:
The members who have cast their
i.
vote(s) by remote e-voting may also
attend the Meeting but shall not be
entitled to cast their vote(s) again at the
Meeting. 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.
(a)
If the mobile number of the
member is registered against Folio
No. / DP ID Client ID, the member
may send SMS: MYEPWD
E-Voting Event Number+Folio No.
or DP ID Client ID to 9212993399
Example for NSDL: MYEPWD
IN12345612345678
Example for CDSL: MYEPWD
1402345612345678
(b)
Example for Physical: MYEPWD
XXXX1234567890
If e-mail address or mobile number
of the member is registered
against Folio No. / DP ID Client ID,
then on the home page of https://
evoting.karvy.com, the member
may click “Forgot Password” and
enter Folio No. or DP ID Client ID
and PAN to generate a password.
(c) Member may call on KFinTech’s
toll-free numbers 1800-425-
8998 / 1800-345-4001 (from 9:00
a.m. to 6:00 p.m.)
ii. A member can opt for only single
(d) Member may send
mode of voting per EVEN, i.e., through
remote e-voting or voting at the
Meeting (Insta Poll). If a member casts
vote(s) by both modes, then voting
done through remote e-voting shall
prevail and vote(s) cast at the Meeting
shall be treated as “INVALID”.
iii. A person, whose name is recorded
in the register of members or in
the register of beneficial owners
maintained by the depositories as
on the cut-off date, i.e., Wednesday,
July 8, 2020 only shall be entitled to
avail the facility of remote e-voting
or for participation at the AGM and
voting through Insta Poll. A person
who is not a member as on the cut-
off date, should treat the Notice for
information purpose only.
an e-mail request to
evoting.ril@kfintech.com
If the member is already registered
with KFinTech’s e-voting platform,
then he can use his existing
password for logging in.
v. The Company has opted to provide
the same electronic voting system at
the Meeting, as used during remote
e-voting, and the said facility shall
be operational till all the resolutions
proposed in the Notice are considered
and voted upon at the Meeting and
may be used for voting only by the
members holding shares as on the cut-
off date who are attending the Meeting
and who have not already cast their
vote(s) through remote e-voting.
vi. Information and instructions
for remote e-voting:
I. A. In case a member receives
an e-mail from the Company
/ KFinTech [for members
whose e-mail addresses
are registered with the
Company / Depository
Participant(s)]:
(a) Launch internet browser by typing
the URL: https://evoting.karvy.com
(b) Enter the login credentials
(User ID and password given in
the e-mail). The E-Voting Event
Number+Folio No. or DP ID Client
ID will be your User ID. However,
if you are already registered with
KFinTech for e-voting, you can
use the existing password for
logging in. If required, please visit
https://evoting.karvy.com or
contact toll-free numbers 1800-
425-8998 / 1800-345-4001 (from
9:00 a.m. to 6:00 p.m.) for your
existing password.
(c) After entering these details
appropriately, click on “LOGIN”.
(d) You will now reach Password
Change Menu wherein you are
required to mandatorily change
your password upon logging-
in for the first time. The new
password shall comprise minimum
8 characters with at least one
upper case (A-Z), one lower case
(a-z), one numeric (0-9) and a
special character (@,#,$,etc.).
The system will prompt you to
change your password and update
your contact details like mobile
number, e-mail address, etc. on
first login. You may also enter
a secret question and answer
of your choice to retrieve your
password in case you forget it. It is
strongly recommended that you
do not share your password with
any other person and that you
take utmost care to keep your
password confidential.
(e) You need to login again with the
new credentials.
421
Notice (contd)Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
(f) On successful login, the system
will prompt you to select the
E-Voting Event Number (EVEN)
for Reliance Industries Limited.
SHAREHOLDERS TO SELECT
THE RESPECTIVE EVENS AND
VOTE DEPENDING UPON
THEIR SHAREHOLDING -
FULLY PAID-UP OR PARTLY
PAID-UP OR BOTH.
(g) On the voting page, enter the
number of shares as on the cut-
off date under either “FOR” or
“AGAINST” or alternatively, you
may partially enter any number
under “FOR” / “AGAINST”, but
the total number under “FOR” /
“AGAINST” taken together should
not exceed your total shareholding
as on the cut-off date. You
may also choose to “ABSTAIN”
and vote will not be counted
under either head.
(h) Members holding shares under
multiple folios / demat accounts
shall choose the voting process
separately for each of the folios /
demat accounts.
(i) Voting has to be done for each
item of the Notice separately. In
case you do not desire to cast your
vote on any specific item, it will be
treated as “ABSTAINED”.
(j) You may then cast your vote by
selecting an appropriate option
and click on “SUBMIT”.
(k) A confirmation box will be
displayed. Click “OK” to confirm,
else “CANCEL” to modify.
(l) Once you confirm, you will not be
allowed to modify your vote.
(m) Corporate / Institutional Members
(i.e., other than Individuals, HUFs,
NRIs, etc.) are also required to
send legible scanned certified
true copy (in PDF Format) of
the Board Resolution / Power
of Attorney / Authority Letter,
etc., together with attested
specimen signature(s) of the duly
authorized representative(s),
to the Scrutiniser at e-mail id:
ril.scrutinizer@kfintech.com
with a copy marked to
evoting.ril@kfintech.com It is
also requested to upload the
same in the e-voting module in
their login. The naming format
of the aforesaid legible scanned
document shall be “Corporate
Name EVENT NO.”
(B) In case of a member whose
e-mail address is not
registered / updated with
the Company / KFinTech /
Depository Participant(s),
please follow the following
steps to generate your login
credentials:
(a) Members holding shares in
physical mode, who have not
registered / updated their email
addresses with the Company,
are requested to register /
update the same by clicking
on https://rkarisma.kfintech.
com/shareholders or by writing
to the Company with details
of folio number and attaching
a self-attested copy of PAN
card at investor.relations@
ril.com or to KFinTech at
rilinvestor@kfintech.com
IV.
In case of any query pertaining to
e-voting, members may refer to the
“Help” and “FAQs” sections / E-voting
user manual available through a
dropdown menu in the “Downloads”
section of KFinTech’s website for
e-voting: https://evoting.karvy.com
or contact KFinTech as per the details
given under sub-point no. V below.
V. Members are requested to note
the following contact details for
addressing e-voting grievances:
Shri S. P. Venugopal, General Manager
KFin Technologies Private Limited
Selenium Tower B, Plot 31-32,
Gachibowli, Financial District,
Nanakramguda, Hyderabad 500 032
Phone No.: +91 40 6716 1700
Toll-free No.: 1800-425-8998
/ 1800-345-4001
E-mail: evoting.ril@kfintech.com
vii. Information and instructions
for Insta Poll:
Facility to cast vote through Insta
Poll will be made available on the
Video Conferencing screen and will
be activated once the Insta Poll is
announced at the Meeting.
(b) Members holding shares in
viii. The Scrutiniser will, after the
dematerialised mode who have
not registered their e-mail
addresses with their Depository
Participant(s) are requested to
register / update their email
addresses with the Depository
Participant(s) with whom they
maintain their demat accounts.
(c) After due verification, the
Company / KFinTech will forward
your login credentials to your
registered email address.
(d) Follow the instructions at I.(A). (a)
to (m) to cast your vote.
II. You can also update your mobile
number and e-mail id in the user profile
details of the folio which may be used
for sending further communication(s).
III. 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.
conclusion of e-voting at the Meeting,
scrutinise the votes cast at the Meeting
(Insta Poll) and votes cast through
remote e-voting, make a consolidated
Scrutiniser’s Report and submit the
same to the Chairman. The result
of e-voting will be declared within
forty-eight hours of the conclusion
of the Meeting and the same, along
with the consolidated Scrutiniser’s
Report, will be placed on the website
of the Company: www.ril.com and
on the website of KFinTech at: https://
evoting.karvy.com. The result will
simultaneously be communicated to
the stock exchanges.
ix. Subject to receipt of requisite
number of votes, the
Resolutions proposed in the
Notice shall be deemed to
be passed on the date of the
Meeting, i.e., Wednesday,
July 15, 2020.
422
PROCEDURE FOR INSPECTION OF
DOCUMENTS:
14. The Register of Directors and Key
Managerial Personnel and their
shareholding maintained under
Section 170 of the Act, the Register of
Contracts or Arrangements in which
the directors are interested, maintained
under Section 189 of the Act, and the
relevant documents referred to in the
Notice will be available electronically
for inspection by the members
during the AGM.
IEPF RELATED INFORMATION:
16. The Company has transferred the
unpaid or unclaimed dividends
declared up to financial years 2011-
12, from time to time, to the Investor
Education and Protection Fund
(“IEPF”) established by the Central
Government. Details of dividends so
far transferred to the IEPF Authority
are available on the website of
IEPF Authority and the same can
be accessed through the link:
www.iepf.gov.in.
All documents referred to in the Notice
will also be available electronically
for inspection without any fee by the
members from the date of circulation
of this Notice up to the date of AGM.
Members seeking to inspect such
documents can send an email to
rilagm@ril.com
15. Members seeking any information with
regard to the accounts or any matter to
be placed at the AGM, are requested
to write to the Company on or before
Tuesday, July 7, 2020 through email on
rilagm@ril.com The same will be replied
by the Company suitably.
17. The details of unpaid and unclaimed
dividends lying with the Company
as on March 31, 2020 are uploaded
on the website of the Company and
can be accessed through the link
https://www.ril.com/InvestorRelations/
ShareholdersInformation.aspx
Details of unpaid and unclaimed
dividends up to March 31, 2019 are also
uploaded on the website of the IEPF
Authority and can be accessed through
the link: www.iepf.gov.in.
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 2019-20, 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 13, 2019. 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:
https://www.ril.com/
InvestorRelations/
ShareholdersInformation.aspx.
The said details have also been uploaded
on the website of the IEPF Authority
and 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 https://www.ril.com/
DownloadFiles/IRForms/Shareholders-
Referencer.pdf or visit the weblink of the
IEPF Authority http://iepf.gov.in/IEPF/
refund.html, or contact KFinTech, for
detailed procedure to lodge the claim with
the IEPF Authority.
Due dates for transfer to IEPF, of the unclaimed/unpaid dividends for the financial year 2012-13 and thereafter, are as under:
Financial year
Declaration Date
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
June 6, 2013
June 18, 2014
June 12, 2015
March 10, 2016
July 21, 2017
July 5, 2018
August 12, 2019
Due Date
July 12, 2020
July 24, 2021
July 18, 2022
April 15, 2023
August 26, 2024
August 4, 2025
September 11, 2026
DIVIDEND RELATED INFORMATION
18. Subject to approval of the Members
at the AGM, the dividend will be paid
within a week from the conclusion
of the AGM, to the Members whose
names appear on the Company’s
Register of Members as on the Record
Date, and in respect of the shares
held in dematerialised mode, to the
Members whose names are furnished
by National Securities Depository
Limited and Central Depository
Services (India) Limited as beneficial
owners as on that date.
Shareholders are requested to register
/ update their complete bank details:
Payment of dividend shall be made
through electronic mode to the
Shareholders who have updated
their bank account details. Dividend
warrants / demand drafts will be
despatched to the registered
address of the shareholders who
have not updated their bank account
details, after normalisation of the
postal service.
(a)
with their Depository Participant(s)
with whom they maintain their
demat accounts if shares
are held in dematerialised
mode by submitting the
requisite documents, and
(b) with the Company / KFinTech by
clicking on https://rkarisma.
kfintech.com/shareholders
423
Notice (contd)Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
or by emailing at investor.
relations@ril.com or rilinvestor@
kfintech.com, if shares are held
in physical mode, by submitting
(i) scanned copy of the signed
request letter which shall contain
shareholder’s name, folio number,
bank details (Bank account
number, Bank and Branch Name
and address, IFSC, MICR details),
(ii) self-attested copy of the PAN
card and (iii) cancelled cheque
leaf. In case shares are held in
dematerialised mode, details
in a form prescribed by your
Depository Participant may also be
required to be furnished.
Pursuant to the amendments
introduced by the Finance Act,
2020 the Company will be
required to withhold taxes at the
prescribed rates on the dividend
paid to its shareholders w.e.f.
1st April 2020. No tax will be
deducted on payment of dividend
to the resident individual
shareholders if the total dividend
paid does not exceed `5,000/-
The withholding tax rate would
vary depending on the residential
status of the shareholder
and documents registered
with the Company.
A. RESIDENT SHAREHOLDERS:
A.1 Tax Deductible at Source for Resident Shareholders
Sr. No Particulars
1
2
3
Valid PAN updated in the Company’s Register of Members
No PAN/Valid PAN not updated in the Company’s Register
of Members
Availability of lower/nil tax deduction certificate issued by
Income Tax Department u/s 197 of Income Tax Act, 1961
Withholding tax
rate
Documents required (if any)
7.5%
20%
No document required (if no exemption is sought)
No document required (if no exemption is sought)
Rate specified in the
certificate
Lower tax deduction certificate obtained from
Income Tax Authority
A.2 No Tax Deductible at Source on dividend payment to resident shareholders if the Shareholders submit
and register following documents as mentioned in column no.4 of the below table with the Company /
KFinTech
Sr. No
(1)
Particulars
(2)
Withholding tax
rate (3)
Documents required (if any)
(4)
1
2
3
4
5
6
Submission of form 15G/15H
Shareholders to whom section 194 of the Income Tax,
1961 does not apply such as LIC, GIC, etc.
Shareholder covered u/s 196 of Income Tax Act, 1961
such as Government, RBI, corporations established
by Central Act & mutual funds.
Category I and II Alternative Investment Fund
• Recognised provident funds
• Approved superannuation fund
• Approved gratuity fund
National Pension Scheme
NIL
NIL
NIL
NIL
NIL
NIL
Declaration in Form No. 15G (applicable to any person
other than a company or a firm) / Form 15H (applicable
to an Individual who is 60 years and above), fulfilling
certain conditions.
Documentary evidence that the said provisions are not
applicable.
Documentary evidence for coverage u/s 196 of
Income Tax Act, 1961
SEBI registration certificate to claim benefit under
section 197A (1F) of Income Tax Act, 1961
Necessary documentary evidence as per Circular
No. 18/2017 issued by Central Board of Direct Taxes
(CBDT)
No TDS as per section 197A (1E) of
Income Tax Act, 1961
B. NON-RESIDENT SHAREHOLDERS:
Withholding tax on dividend payment to non-resident shareholders if the non-resident shareholders
submit and register following document as mentioned in column no.4 of the below table with the
Company / KFinTech
Sr. No
(1)
Particulars
(2)
Withholding tax rate
(3)
Documents required (if any)
(4)
1
2
3
4
Foreign Institutional Investors (FIIs) /
Foreign Portfolio Investors (FPIs)
Other Non-resident shareholders
20% (plus applicable surcharge
and cess)
20% (plus applicable surcharge
and cess) or tax treaty rate
whichever is beneficial
Indian Branch of a Foreign Bank
Nil
Availability of Lower/NIL tax deduction
certificate issued by Income Tax
Department u/s 197 of Income Tax
Act, 1961
Rate specified in certificate
FPI registration number / certificate.
To avail beneficial rate of tax treaty following tax
documents would be required:
1. Tax Residency certificate issued by revenue authority
of country of residence of shareholder for the year in
which dividend is received
2. PAN
3. Form 10F filled & duly signed
4. Self-declaration for non-existence of permanent
establishment/ fixed base in India
(Note: Application of beneficial Tax Treaty Rate shall
depend upon the completeness of the documents
submitted by the Non- Resident shareholder and review to
the satisfaction of the Company)
Lower tax deduction certificate u/s 195(3) obtained from
Income Tax Authority
Self-declaration confirming that the income is received on
its own account and not on behalf of the Foreign Bank
Lower tax deduction certificate obtained from Income Tax
Authority
424
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Notice (contd)Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
21. 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.
22. Non-Resident Indian members are
requested to inform KFinTech /
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.
23. Shareholders’ Referencer giving
guidance on securities related matters
is uploaded on the Company’s website
and can be accessed at link https://
www.ril.com/DownloadFiles/IRForms/
Shareholders-Referencer.pdf.
24. Members are requested to fill in and
send the Feedback Form provided in
the Annual Report.
Notes:
(i) The Company will issue soft copy of
the TDS certificate to its shareholders
through email registered with the
Company / KFinTech post payment of
the dividend. Shareholders will be able
to download the TDS certificate from
the Income Tax Department’s website
https://incometaxindiaefiling.gov.in
(refer to Form 26AS).
(ii) The aforesaid documents such as
Form 15G/ 15H, documents under
section 196, 197A, FPI Registration
Certificate, Tax Residency Certificate,
Lower Tax certificate etc. can be
uploaded on the link https://rkarisma.
kfintech.com/dividendtds/ on or before
July 03, 2020 to enable the Company
to determine the appropriate TDS
/ withholding tax rate applicable.
Any communication on the tax
determination/deduction received post
July 03, 2020 shall not be considered.
(iii) Application of TDS rate is subject to
(iv)
(v)
necessary verification by the Company
of the shareholder details as available
in Register of Members as on the
Record Date, and other documents
available with the Company / KFinTech.
In case TDS is deducted at a higher
rate, an option is still available with the
shareholder to file the return of income
and claim an appropriate refund.
In the event of any income tax demand
(including interest, penalty, etc.) arising
from any misrepresentation, inaccuracy
or omission of information provided
by the Member/s, such Member/s
will be responsible to indemnify
the Company and also, provide
the Company with all information /
documents and co-operation in any
appellate proceedings.
(vi) This Communication is not exhaustive
and does not purport to be a complete
analysis or listing of all potential
tax consequences in the matter of
dividend payment. Shareholders
should consult their tax advisors for
requisite action to be taken by them.
OTHER INFORMATION
19. 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 /
KFinTech 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.
20. Members holding shares in
physical mode are:
a)
required to submit their Permanent
Account Number (PAN) and bank
account details to the Company
/ KFinTech at https://rkarisma.
kfintech.com/shareholders, if
not registered with the Company/
KFinTech, as mandated by SEBI
by writing to the Company at
investor.relations@ril.com or
to KFinTech at
rilinvestor@kfintech.com along
with the details of folio no., self-
attested copy of PAN card, bank
details (Bank account number,
Bank and Branch Name and
address, IFSC, MICR details) and
cancelled cheque.
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 https://www.ril.
com/DownloadFiles/IRForms/
Nominations.pdf
426
STATEMENT PURSUANT
TO SECTION 102(1) OF THE
COMPANIES ACT, 2013
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 30, 2020 has, subject to approval
of members, re-appointed Shri Hital R.
Meswani (DIN: 00001623) 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 4, 2020, on terms and conditions
including remuneration as recommended
by the Human Resources, Nomination
and Remuneration Committee (the ‘HRNR
Committee’) of the Board.
Members’ approval is sought for the
re-appointment of and remuneration
payable to Shri Hital R. Meswani 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 Hital R. Meswani are as under:
(a) Salary, Perquisites and
Allowances per annum:
(` in crore)
Salary
Perquisites and Allowances
2.16
4.20
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) Contribution to provident
(f) General:
fund, superannuation or
annuity fund, gratuity etc.
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) Remuneration based on net
profits:
In addition to the salary, perquisites
and allowances as set out above, Shri
Hital R. Meswani shall be entitled to
receive remuneration based on net
profits. Such remuneration based
on net profits payable to him will be
determined by the Board and / or the
HRNR Committee of the Board for
each financial year based on members’
approval granted in the Annual General
Meeting held on June 18, 2014.
(d) Increment / Incentive / ESOP
etc.:
(i)
Increment in salary / incentive
/ bonus / performance linked
incentive, payable to Shri Hital R.
Meswani, as may be determined
by the Board and / or the HRNR
Committee of the Board, shall be
in addition to the remuneration
under (a) above.
(ii) Employees Stock Options granted
/ to be granted to Shri Hital R.
Meswani, from time to time, shall
not be considered as a part of
perquisites under (a) above,
and that the perquisite value of
stock options exercised shall be
in addition to the remuneration
under (a) above.
(e) Reimbursement of Expenses:
Expenses incurred for travelling, board
and lodging including for Shri Hital R.
Meswani’s spouse and attendant(s)
during business trips and provision of
car(s) for use on Company’s business
and communication expenses at
residence shall be reimbursed
at actuals and not considered
as perquisites.
i.
The Whole-time Director shall
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 Hital R. Meswani satisfies all
the conditions set out in Part-I
of Schedule V to the Act as also
conditions set out under sub-
section (3) of Section 196 of the
Act for being eligible for his re-
appointment. He is not disqualified
from being appointed as a Director
in terms of Section 164 of the Act.
The above may be treated as
a written memorandum setting
out the terms of
re-appointment of Shri Hital
R. Meswani under Section
190 of the Act.
Details of Shri Hital R. Meswani are
provided in the “Annexure” to the
Notice, pursuant to the provisions
of (i) the Securities and Exchange
Board of India (Listing Obligations
and Disclosure Requirements)
Regulations, 2015 and (ii)
427
Notice (contd)Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
Secretarial Standard on General
Meetings issued by the Institute of
Company Secretaries of India.
Shri Hital R. Meswani is interested
in the resolution set out at Item
No. 5 of the Notice. Shri Nikhil R.
Meswani, a Whole-time Director,
being related to Shri Hital R.
Meswani may be deemed to be
interested in the resolution set out
at Item No. 5 of the Notice.
The other relatives of Shri Hital R.
Meswani may be deemed to be
interested in the resolution set out
at Item No. 5 of the Notice, to the
extent of their shareholding, if any,
in the Company.
Save and except the above,
none of the other Directors /
Key Managerial Personnel of the
Company / their relatives are, in
any way, concerned or interested,
financially or otherwise, in
the resolution.
The Board commends the
Ordinary Resolution set out at Item
No. 5 of the Notice for approval
by the members.
ITEM NO. 6
Based on the recommendation of the
Human Resources, Nomination and
Remuneration Committee, the Board
of Directors of the Company, pursuant
to the provisions of Section 161(1) of the
Companies Act, 2013 (“the Act”) and the
Articles of Association of the Company,
had appointed Shri K. V. Chowdary (DIN:
08485334) as an Additional Director of the
Company with effect from October 18, 2019.
Pursuant to Section 161(1) of the Act, Shri
K. V. Chowdary holds office up to the date
of this meeting.
Shri K. V. Chowdary is not disqualified from
being appointed as a director in terms of
Section 164 of the Act and has given his
consent to act as a director.
Details of Shri K. V. Chowdary 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
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.
Shri K. V. Chowdary is interested in the
resolution set out at Item No. 6 of the Notice
with regard to his appointment. Relatives of
Shri K. V. Chowdary may be deemed to be
interested in the resolution to the extent of
their shareholding, 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. 6 of the
Notice for approval by the members.
ITEM NO. 7
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, 2021, as
per the following details:
Name of the Cost Auditor
Industry
Diwanji & Co.
K. G. Goyal & Associates
V. J. Talati & Co.
Kiran J. Mehta & Co.
Suresh D. Shenoy
V. Kumar & Associates
Dilip M. Malkar & Co.
Shome & Banerjee
Shome & Banerjee, Lead Cost Auditor
Total
Electricity, Chemicals
Chemicals and Polyester
Chemicals, Oil & Gas and Polyester
Textiles, Electricity and Composites
Polyester, Chemicals, Petroleum and Gasification
Polyester
Chemicals
Oil & Gas and Chemicals
Lead Cost Audit Fees
Cost Audit Fee
(in ₹)
9,30,000
3,03,000
9,11,000
4,50,000
9,21,000
6,00,000
7,33,000
7,39,000
8,00,000
63,87,000
Sr.
No.
1.
2.
3.
4.
5.
6.
7.
8.
428
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,
2021 by passing an Ordinary Resolution as set out at Item No. 7 of the Notice.
None of the Directors / Key Managerial Personnel of the Company / their relatives are, in any way, concerned or interested, financially or
otherwise, in the resolution.
The Board commends the Ordinary Resolution set out at Item No. 7 of the Notice for ratification by the members.
By Order of the Board of Directors
K. Sethuraman
Group Company Secretary and
Chief Compliance Officer
Mumbai, June 20, 2020
Registered Office:
3rd Floor, Maker Chambers IV, 222,
Nariman Point,
Mumbai 400 021
CIN: L17110MH1973PLC019786
Website: www.ril.com
E-mail: investor.relations@ril.com
Tel.: +91 22 3555 5000
Fax: +91 22 2204 2268
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Notice (contd)Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview
ANNEXURE TO THE NOTICE DATED JUNE 20, 2020
DETAILS OF DIRECTORS RETIRING BY ROTATION / SEEKING APPOINTMENT / RE-APPOINTMENT AT THE
MEETING
Shri P.M.S. Prasad
Membership / Chairmanship of Committees of other Boards as on
March 31, 2020
Shri Hital R. Meswani
Age
Qualifications
Experience (including expertise in specific functional area) / Brief
Resume
Terms and Conditions of Re-appointment
Remuneration last drawn
(FY 2019-20)
Remuneration proposed to be paid
Date of first appointment on the Board
Shareholding in the Company as on March 31, 2020
Relationship with other Directors / Key Managerial Personnel
Number of meetings of the Board attended during the financial year
(2019-20)
Directorships of other Boards as on March 31, 2020
Membership / Chairmanship of Committees of other Boards as on
March 31, 2020
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
Remuneration proposed to be paid
Date of first appointment on the Board
Shareholding in the Company as on March 31, 2020
Relationship with other Directors / Key Managerial Personnel
Number of meetings of the Board attended during the financial year
(2019-20)
Directorships of other Boards as on March 31, 2020
51 years
• Honours in Management & Technology Programme from University of
Pennsylvania (UPENN), U.S.A.
• Bachelor of Science in Chemical Engineering from School of
Engineering and Applied Sciences, UPENN
• Bachelor of Science in Economics from Wharton Business School
Vast experience in petroleum and petrochemicals 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 Hital R. Meswani is proposed to be
re-appointed as a Whole-time Director.
` 24 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 passed by the
shareholders at the Annual General Meeting held on June 18, 2014
August 4, 1995
32,23,772 equity shares of ` 10/- each
Brother of Shri Nikhil R. Meswani, Whole-time Director and not related to any
other Director / Key Managerial Personnel
7
Reliance Industrial Investments and Holdings Limited
Reliance Commercial Dealers Limited
The Indian Film Combine Private Limited
The Indian Film Combine Private Limited
Audit Committee- Chairman
Nomination and Remuneration Committee- Member
Corporate Social Responsibility Committee – Chairman
68 years
Bachelor Degree in science from Osmania University and in Engineering from
Anna University
Vast experience in Petroleum and Petrochemical industry. Please refer
Company’s website: www.ril.com for detailed profile.
In terms of Section 152(6) of the Companies Act, 2013, Shri P.M.S. Prasad who
was re-appointed as a Whole-time Director at the Annual General Meeting
held on August 12, 2019, is liable to retire by rotation.
` 11.15 crore (for remuneration details, please refer the Corporate Governance
Report)
As per existing approved terms and conditions
August 21, 2009
6,00,000 equity shares of ` 10/- each
Not related to any Director / Key Managerial Personnel
7
Reliance Commercial Dealers Limited
Viacom18 Media Private Limited
Network18 Media & Investments Limited
TV18 Broadcast Limited
Shri K.V. Chowdary
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, 2020
Relationship with other Directors / Key Managerial Personnel
Number of meetings of the Board attended during the financial year
(2019-20)
Directorships of other Boards as on March 31, 2020
Membership / Chairmanship of Committees of other Boards as on
March 31, 2020
Mumbai, June 20, 2020
Registered Office:
3rd Floor, Maker Chambers IV, 222,
Nariman Point,
Mumbai 400 021
CIN: L17110MH1973PLC019786
Website: www.ril.com
E-mail: investor.relations@ril.com
Tel.: +91 22 3555 5000
Fax: +91 22 2204 2268
Reliance Commercial Dealers Limited
Nomination and Remuneration Committee – Chairman
Corporate Social Responsibility Committee – Member
Network18 Media & Investments Limited
Stakeholders’ Relationship Committee – Member
Corporate Social Responsibility Committee – Member
Audit Committee - Member
Nomination and Remuneration Committee – Member
Risk Management Committee - Member
TV18 Broadcast Limited
Corporate Social Responsibility Committee – Member
Stakeholders’ Relationship Committee – Member
Audit Committee - Member
Nomination and Remuneration Committee – Member
Risk Management Committee - Member
Viacom18 Media Private Limited
Corporate Social Responsibility Committee – Member
65 years
Graduation in Mathematics from Loyola College, Chennai and Post-
Graduation in Mathematics from IIT, Chennai
Retired as Chairman of Central Board of Direct Taxes (CBDT). 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 K.V. Chowdary is proposed to be
appointed as a Director
` 0.66 crore (for remuneration details, please refer the Corporate
Governance Report)
As per the resolution at Item No. 6 of the Notice convening this Meeting and
the resolution passed by the shareholders at the Annual General Meeting
held on June 18, 2014
October 18, 2019
Nil
Not related to any Director / Key Managerial Personnel
5 (appointed w.e.f. October 18, 2019)
CCL Products (India) Limited
Divi’s Laboratories Limited
CCL Products (India) Limited
Audit Committee – Member
Divi’s Laboratories Limited
Audit Committee – Member
Compensation, Nomination and Remuneration Committee- Member
Stakeholders’ Relationship Committee – Member
By Order of the Board of Directors
K. Sethuraman
Group Company Secretary and
Chief Compliance Officer
430
431
Notice (contd)Naye India Ka Naya JoshReliance Industries Limited Integrated Annual Report 2019-20Management ReviewNotice Financial StatementsGovernance Corporate Overview Members’
Feedback Form
2019-20
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
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ANNUAL REPORT
Management’s Discussion
and Analysis Report
Business Responsibility
Report (available on website)
Report on Corporate Social
Responsibility
(available on website)
Corporate Governance
Report
Board’s Report
Quality of financial and
non-financial information in
the Annual Report
Information on Company’s
Website
Investor Services
Turnaround time for response
to shareholder’s query
Quality of response
Contents
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Conduct of Annual General Meeting
Timely receipt of dividend
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.
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Reliance Industries Limited
C/o. KFin Technologies Private Limited
Selenium Tower B, Plot No. 31-32, Gachibowli,
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Registered Office
3rd Floor, Maker Chambers IV,
222, Nariman Point, Mumbai - 400 021
Tel: +91 22 3555 5000
Fax: +91 22 2204 2268 / 22 2285 2214
www.ril.com
BSE. 500325
NSE. RELIANCE
BLOOMBERG. RIL:IN
CIN. L17110MH1973PLC019786
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