Reliance Industries Limited (RIL)

INTRODUCTION: Reliance industries Ltd is anIndianconglomerateholding company headquartered inMumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail and telecommunications. Reliance is the most profitable company in India, the second-largestpublicly traded companyin India by market capitalization and the second largest company in India as measured by revenue after the government-controlledIndian Oil Corporation. The company is ranked 114th on theFortune Global 500list of the world's biggest corporations, as of 2014RIL contributes approximately 20% ofIndia's total exports.

The Reliance Group, founded by Dhirubhai H. Ambani , is India's largest private sector enterprise, with businesses in the energy and materials value chain. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. It was in 1957 when he returned to India after a stint with A.Besse& Co., Aden he started yarn trading business from a small 500 sq.ft. office in Masjid Bunder, Mumbai.he set up his brand new mill in Naroda, Gujarat. In 1996 Reliance went on to become the biggest textile brand Only Vimal?. In 1977 the Reliance Textile Industries came with an IPO which was oversubscribed seven times.Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.Starting as a small textile company, Reliance has in its journey crossed several milestones to become a Fortune 500 company in less than 3 decades.Reliance Industries Limited operates worldclass manufacturing facilities across the country at Allahabad, Barabanki, Dahej, Dhenkanal, Hazira, Hoshiarpur, Jamnagar, Kurkumbh, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara.

History1960 1980The company was co-founded byDhirubhai Ambaniand his cousin Champaklal Damani in 1960s as Reliance Commercial Corporation. In 1965, the partnership was ended and Dhirubhai continued thepolyesterbusiness of the firm. In 1966, Reliance Textiles Industries Pvt Ltd was incorporated in Maharashtra. It established asynthetic fabricsmill in the same year atNarodain Gujarat In 1975, company expanded its business into textiles, with "Vimal" becoming its major brand in later years. The company held itsInitial public offering(IPO) in 1977.The issue was over-subscribed by seven times.In 1979, a textiles company Sidhpur Mills was amalgamated with the company.In 1980, the company expanded its polyster yarn business by setting up a Polyester Filament Yarn Plant inRaigad, Maharashtra with financial and technical collaboration.

1981 2000In 1985, the name of the company was changed from Reliance Textiles Industries Ltd. to Reliance Industries Ltd During the years 1985 to 1992, the company expanded its installed capacity for producing polyster yarn by over 145,000 tonnes per annum.The Hazira petrochemical plant was commissioned in 199192.In 1993, Reliance turned to the overseas capital markets for funds through aglobal depositaryissue of Reliance Petroleum. In 1996, it became the first private sector company in India to be rated by international credit rating agencies.S&Prated BB+, stable outlook, constrained by the sovereign ceiling.Moody'srated Baa3, Investment grade, constrained by the sovereign ceiling.[14]In the year 199596, the company entered thetelecomindustry through a joint venture withNYNEX, USA and promoted Reliance Telecom Private Limited in India.[13]In 199899, RIL introduced packaged LPG in 15kg cylinders under the brand name Reliance Gas.During 19982000, the company completed setup of integrated petrochemical complex atJamnagarin Gujarat.

2001 presentIn 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest companies in terms of all major financial parameters. In 200102, Reliance Petroleum was merged with Reliance Industries. In 2002, Reliance announced India's biggest gas discovery (at theKrishna Godavari basin) in nearly three decades and one of the largest gas discoveries in the world during 2002. The in-place volume of natural gas was in excess of 7 trillion cubic feet, equivalent to about 1.2 billion barrels of crude oil. This was the first ever discovery by an Indian private sector company. In 200203, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL), India's second largest petrochemicals company, from Government of India.IPCL was later merged with RIL in 2008.In the years 2005 and 2006, the company reorganized its business by demerging its investments in power generation and distribution, financial services and telecommunication services into four separate entities .In 2006, Reliance entered the organised retail market in India with the launch of its retail store format under the brand name of 'Reliance Fresh'.By the end of 2008, Reliance retail had close to 600 stores across 57 cities in India. In November 2009, Reliance Industries issued 1:1 bonus shares to its shareholders. In 2010, Reliance entered Broadband services market with acquisition of Infotel Broadband Services Limited, which was the only successful bidder for pan-India fourth-generation (4G) spectrum auction held by Government of India.In the same year, Reliance andBPannounced a partnership in the oil and gas business. BP took a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in India, including the KG-D6 block for $7.2 billion. Reliance also formed a 50:50 joint venture with BP for sourcing and marketing of gas in India.In 2012, RIL set up ajoint venturewith Russian CompanySiburfor setting up aButyl rubberplant inJamnagar,Gujarat. The plant is scheduled to be operational in 2015 Presently,Vivek Lallis the President and CEO of New Ventures in the Chairmans Office at Reliance Industries Limited. Barabanki Manufacturing Divisionlocated near Lucknow, Uttar Pradesh, is spread over 106 acres. It manufactures Black Fibre.Dahej Manufacturing Divisionlocated near Bharuch, Gujarat, is spread over 1,778 acres. It comprises of an ethane / propane recovery unit, a gas cracker, a caustic chlorine plant and 4 downstream

Shareholding:The number of shareholders in RIL are approx. 3 million The promoter group, Ambani family, holds approx. 45.34% of the total shares whereas the remaining 54.66% shares are held by public shareholders, including FII and corporate bodies.Life Insurance Corporation of Indiais the largest non-promoter investor in the company with 7.98% shareholding.

Buyback: In January 2012, the company announced a buyback programme to buy a maximum of 120 million shares for104 billion (US$1.6billion). By the end of January 2013, the company bought back 46.2 million shares for33.66 billion(US$510million). Listing:The company's equity shares are listed on theNational Stock Exchange of IndiaLimited (NSE) and theBSELimited. TheGlobal Depository Receipts(GDRs) issued by the Company are listed onLuxembourg Stock Exchange.It has issued approx. 56 million GDRs wherein each GDR is equivalent to 2 equity shares of the company. Approx. 3.46% of its total shares are listed on Luxembourg Stock Exchange. Its debt securities are listed at the Wholesale Debt Market (WDM) Segment of the National Stock Exchange of India Limited (NSE).

Credit Ratings: It has received domestic credit ratings of AAA from CRISIL (S&P subsidiary) and Fitch. Moodys and S&P have provided investment grade ratings for international debt of the Company, as Baa2 positive outlook (local currency issuer rating) and BBB+ outlook respectively.

OperationsThe company'spetrochemicals,refining, and oil and gas-related operations form the core of its business; other divisions of the company include cloth, retail business, telecommunications andspecial economic zone(SEZ) development. In 201213, it earned 76% of its revenue from Refining, 19% from Petrochemicals, 2% from Oil & Gas and 3% from Other segments. In July 2012, RIL informed that it was going to invest US$1 billion over the next few years in its new aerospace division which will design, develop, manufacture, equipment and components, includingairframe,engine,radars,avionicsand accessories for military and civilian aircraft,helicopters, unmanned airborne vehicles andaerostats.

The company works under different business segments: Exploration and Production Petroleum Refining and Marketing Petrochemicals Textiles Retail

Products and brands offered by the company: Crude oil and natural gas LPG Propylene Naphtha Gasoline Jet/Aviation Turbine Fuel Superior Kerosene Oil High Speed Diesel Sulphur Petroleum Coke Polypropylene High Density Polyethylene Low Density Polyethylene Linear Low Density Polyethylene Polyvinyl Chloride Poly ?Olefin Suitings ,Shirtings,Readymade Garments Furnishing fabrics Day curtains Automotive upholstery Suitings Readytostitch Take away fabric Fleet management services Highway hospitality services Vehicle care services Linear Alkyl Benzene Para xylene Purified Terephthalic Acid Mono Ethylene Glycol Staple Fibre Filament Yarn Texturised yarn Twisted yarn Moisture management yarn Quality certified sleep products Polyethylene terephthalateSubsidiaries: Reliance Petroleum Limited Reliance Netherlands B.V. Reliance Retail Limited Reliance Jamnagar Infrastructure Limited Reliance Haryana SEZ Limited Reliance Industrial Investment and Holdings Limited Reliance Ventures Limited Reliance Strategic Investments Limited Reliance Exploration and Production DMCC Reliance Industries (Middle East) DMCC Reliance Global Management Services Limited Reliance Commercial Associates Limited RIL (Australia) Pty Ltd Re cron (Malaysia) Sd Bhd Gulf African Petroleum Corporation (Mauritius) GAPCO Tanzania Limited GAP Oil Tanzania Limited GAPCO Kenya Limited Trans energy Kenya Limited GAPCO Uganda Limited GAPCO Rwanda Sarl GAPOil (Zanzibar) Limited Reliance Fresh Limited Retail Concepts and Services (India) Limited Reliance Retail Insurance Broking Limited Reliance Dairy Foods Limited Reliance Retail Finance Limited RESQ Limited Reliance digital Retail Limited Reliance Financial Distribution and Advisory Services Limited Reliance Hype rmart Limited Reliance Retail Travel & Forex Services Limited Reliance Brands Limited Reliance Wellness Limited Reliance Footprint Limited Reliance Integrated Agri Solutions Limited Reliance Trends Limited Reliance Lifestyle Holdings Limited Reliance Universal Ventures Limited Reliance Auto zone Limited Strategic Manpower Solutions Limited Reliance Gems and Jewels Limited Delight Proteins Limited Reliance F&B Services Limited Reliance Agri Products Distribution Limited Reliance Leisures Limited Reliance Retail Securities and Broking Company Limited Reliance Home Store Limited Reliance Trade Services Centre Limited Reliance Food Processing Solutions Limited Reliance Supply Chain Solutions Limited Reliance Loyalty and Analylitics Limited Reliance Digital Media Limited RelianceGrand Optical Private Limited Reliance Vantage Retail Limited Reliance People Serve Limited Reliance Infrastructure Management Services Limited Reliance International Exploration and Production, Inc Reliance Petro investments Limited Reliance Universal Commercial Limited Reliance Global Commercial Limited Wave Land Developers Limited Reliance Cyprus Limited Reliance Global Business B.V. Reliance Global Energy Services Limited Reliance Gas Corporation Limited Reliance Global Energy Services (Singapore) Pte. Ltd Reliance Polymers (India) Limited Reliance Polyolefins Private Limited Reliance Aromatics & Petrochemicals Private Limited Reliance Energy and Project Development Private Limited Reliance Chemicals Private Limited Reliance Universal Enterprises Private Limited Reliance One Enterprises Limited Reliance Personal Electronics Limited International Oil Trading Limited Reliance Review Cinema Private Limited Reliance Replay Gaming Private Limited Reliance Nutritional Food Processors Private Limited Reliance Commercial Land & Infrastructure Private Limited Reliance Eminent Trading & Commercial Private Limited Reliance Progressive Traders Private Limited Reliance Prolific Traders Private Limited Reliance Universal Traders Private Limited Reliance Prolific Commercial Private Limited Reliance Com trade Private Limited Reliance Ambit Trade Private Limited Reliance Corporate IT Park Limited Reliance Petro Marketing Private Limited LPG Infrastructure (India) Private Limited Reliance Info solution Private Limited RIL USA Inc.

Major subsidiaries and associates:On 31 March 2013, the company had 123 subsidiary companies and 10 associate companies. Reliance Retailis the retail business wing of the Reliance Industries. In March 2013, it had 1466 stores in India.[40]It is the largest retailer in India.[41]Many brands likeReliance Fresh, Reliance Footprint, Reliance Time Out,Reliance Digital, Reliance Wellness, Reliance Trends, Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore, Reliance Home Kitchens, Reliance Market (Cash n Carry) and Reliance Jewel come under the Reliance Retail brand. Its annual revenue for the financial year 201213 was108 billion(US$1.6billion) with an EBITDA of780 million(US$12million).

Reliance Life Sciencesworks around medical, plant and industrialbiotechnologyopportunities. It specializes in manufacturing, branding, and marketing Reliance Industries' products in bio-pharmaceuticals,pharmaceuticals, clinical research services,regenerative medicine,molecular medicine, novel therapeutics,biofuels, plant biotechnology, andindustrial biotechnologysectors of the medical business industry. Reliance Institute of Life Sciences(RILS), established by Dhirubhai Ambani Foundation, is an institution offering higher education in various fields oflife sciencesand related technologies. Reliance Logisticsis a single-window company selling transportation, distribution, warehousing, logistics, and supply chain-related products, supported by in-house telematics and telemetry solutions.Reliance Logistics is an asset based company with its own fleet and infrastructure.It provides logistics services to Reliance group companies and outsiders. Reliance Clinical Research Services(RCRS), acontract research organisation(CRO) and wholly owned subsidiary of Reliance Life Sciences, specialises in the clinical research services industry. Its clients are primarily pharmaceutical, biotechnology and medical device companies Reliance Solar, the solar energy subsidiary of Reliance, was established to produce and retail solar energy systems primarily to remote and rural areas. It offers a range of products based on solar energy: solar lanterns, home lighting systems, street lighting systems,water purificationsystems, refrigeration systems and solar air conditioners. ]Merged content fromReliance Solarto here. Relicordis acord blood bankingservice owned by Reliance Life Sciences. It was established in 2002.[54]It has been inspected and accredited byAABB,[55]and also has been accorded a license by Food and Drug Administration (FDA), Government of India. Reliance Jio Infocomm Limited (RJIL)previously known as Infotel Broadband, is a broadband service provider which gained4Glicences for operating across India. Now it is wholly owned by RIL for48 billion(US$720million).Sandip Das, former CEO of Maxis Malaysia, is the current group president of Reliance Jio Infocomm.

Reliance Industrial Infrastructure Limited(RIIL) is an associate company of RIL. RIL holds 45.43% of total shares of RIIL.It was incorporated in September 1988 as Chembur Patalganga Pipelines Limited, with the main objective being to build and operate cross-country pipelines for transporting petroleum products.The company's name was subsequently changed to CPPL Limited in September 1992, and thereafter to its present name, Reliance Industrial Infrastructure Limited, in March 1994 RIIL is mainly engaged in the business of setting up and operating industrial infrastructure. The company is also engaged in related activities involving leasing and providing services connected with computer software and data processing. The company set up a 200-millimetre diameter twin pipeline system that connects the Bharat Petroleum refinery at Mahul,Maharashtra, to Reliance's petrochemical complex atPatalganga, Maharashtra. The pipeline carries petroleum products includingnaphthaand kerosene. It has commissioned facilities like the supervisory control and data acquisition system and the cathodic protection system, a jackwell at River Tapi, and a raw water pipeline system atHazira. The infrastructure company constructed a 71,000 kilo-litre petrochemical product storage and distribution terminal at the Jawaharlal Nehru Port Trust (JNPT) Area in Maharashtra.

EmployeesAs on 31 March 2013, the company had 23,519 employees of which 1,159 were women and 83 were employees with disabilities. It also had 29,462 temporary employees on the same date.As per its Sustainability Report for 201112, the attrition rate was 7.57% In its 39th Annual General Meeting, its Chairman informed the shareholders of the investment plans of the company of about1500 billion(US$23billion) in next three years. This would be accompanied by increasing the staff strength in Retail division from existing strength of 35,000 to 120,000 in next three years and increasing employees in Telecom division from existing 3,000 to 10,000 in 12 months.

Environmental record Reliance Industries is the world's largest polyester producer and as a result one of the largest producers of polyester waste in the world. In order to deal with large quantities of waste, they operate the largest polyester recycling centre that uses the polyester waste as a filling and stuffing.

Awards and recognition International Refiner of the Year in 2013 at the HART Energys 27th World Refining & Fuel Conference. This is the second time that RIL has received this Award for its Jamnagar Refinery, the first being in 2005.

According to survey conducted byBrand Financein 2013, Reliance is the second most valuable brand in India.

TheBrand Trust Reportranked Reliance Industries as the 7th most trusted brand in India in 2013 and 9th in 2014.

RIL was certified as 'Responsible CareCompany' by theAmerican Chemistry Councilin March, 2012

RIL was ranked at 25th position across the world, on the basis of sales, in the ICIS Top 100 Chemicals Companies list in 2012.

RIL was awarded the National Golden Peacock Award 2011 for its contribution in the field of corporate sustainability. In 2009,Boston Consulting Group(BCG) named Reliance Industries as the world's fifth biggest 'sustainable value creator' in a list of 25 top companies globally in terms of investor returns over a decade.

The company was selected as one of the world's 100 best managed companies for the year 2000 byIndustry Weekmagazine.

From 1994 to 1997, the company won National Energy Conservation Award in the petrochemical secto

Achievements, Corporate Ranking and Ratings: RIL continues to be featured, for the sixth consecutive year, in the Fortune Global 500 list of the World's Largest Corporations, ranking for 2010 is as follows Ranked 175 based on Revenues Ranked 100 based on Profits RIL is ranked 68th in 2010, in the Financial Times' FT Global 500 list of the world's largest companies (up from previous year's 75th rank). RIL has been ranked at 20th position, on the basis of sales, in the ICIS Top 100 Chemicals Companies list. RIL is the only Indian company in the world's Top 20 chemical companies in the global ranking. RIL has also been named as the 8th biggest gainer in the list in terms of operating profits. RIL is the only Indian company to get a perfect score from CLSA AsiaPacific Markets (CLSA) in a list of Asia's best companies in terms of CSR and termed the Company as the region's 'Corporate Good Guy'. In its 'Ethical Asia' 2010 report, CLSA has named RIL among its top picks for providing very good data and going well beyond required disclosure. RIL is rated as the 33rd 'Most Innovative Company in the World' in a survey conducted by the US financial publication Business Week in collaboration with the Boston Consulting Group (BCG). Further, in 2010, BCG has ranked RIL second amongst the world's 10 biggest, 'Sustainable Value Creators', companies for creating the most shareholder value for the period 2000 to 2009.

Financial Milestones Year 2013 RIL?s Revenues for FY 201213 were Rs. 371,119 crore ($ 68.4 billion), Net Profit was Rs. 21,003 crore ($ 3.9 billion), Networth was Rs. 176,766 crore and Total Assets were Rs. 318,511 crore, unparalleled in the Indian Private Sector. Exports for FY 201213 were Rs. 239,226 crore ($ 44.1 billion), 14% of Indias total exports. RIL declared Dividend of 90%. Payout of Rs. 3,092 crore, one of the highest in the Indian Private Sector. During the year, RIL signed $ 4.5 billion equivalent facilities, backed by Export Credit Agencies, which included:

BALANCE SHEET OF RELIANCE INDUSTRIES LIMITED FOR THE YEAR ENDED 31ST MARCH , 2013(Rs. in crore)PARTICULARS

EQUITY AND LIABILITIES

1. SHAREHOLDERS FUNDS

(a) Share capital (b) Reserves and surplus

Share application money pending allotment

2. NON-CURRENT LIABILITIES

(a) Long-term borrowings (b) Deferred tax liabilities (net)

3. CURRENT LIABILITIES (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions

TOTAL

NOTE TO ACCOUNTS

12

1

34

5678

AMOUNT

3,2291,76,766

43,012 -12,193

11,51145,78721,6404,348

AMOUNT

1,79,99525

55,205

83,286

3,18,511

PARTICULARS

II. ASSETS

1. NON CURRENT ASSETS (a) Fixed assets Tangible assets Intangible assets (b) Capital work-in-progress (c) Intangible assets (d) non-current investments (e) Long term loans and advances

2. CURRENT ASSETS

(a) Current investments (b) Inventories Trade receivables (d) Cash and bank balances (e) Short-term loans and advances (f ) Other current assets

TOTAL

NOTE TO ACCOUNTS

99991011

121314151617

AMOUNT

82,96226,78613,5255,59124,14321,528

28,36642,72911,88049,54710,974480

AMOUNT

1,74,535

1,43,9763,18,511

RELIANCE INDUSTRIES LIMITED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED OF 31ST MARCH , 2013 (Rs. in crore)PARTICULARS

INCOME:Revenue From OperationsSale Of ProductsIncome From Services

Less: Excise Duty/Service tax recoverd

Net revenue from operations

II. OTHER INCOME

III. TOTAL REVENUE (I + II)

IV. EXPENSES :

(a) Cost of materials consumed(b) Purchase of products for sale(c) Changes in inventories of finished goods, stock- in-progress ,and stock in trade(d) Employee cost / benefits expense(e) Finance cost(f ) Depreciation and amortisation expense(h) Other expenses

TOTAL EXPENSES

Profit before tax

Tax expensesCurrent taxDeferred tax

Profit for the year

Earning per equity share of face value of rs.10 eachBasic and diluted in Rs

NOTE TO ACCOUNTS

18

19

20

21

22232425

30

AMOUNT

3,71,021983,71,119

10,822

3,06,127502(3,317)

3,3543,30369,46522,844

AMOUNT

3,60,297

7,998

3,68,295

3,42,011

5,24437

26,284

21,003

64.82