MIRA
INFORM REPORT
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Report Date : |
11.05.2011 |
Note: The company is shifted from above address.
IDENTIFICATION DETAILS
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Name : |
RELIANCE INDUSTRIES LIMITED |
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Registered
Office : |
3rd
Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
08.05.1973 |
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Com. Reg. No.: |
11-19786 |
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Capital
Investment/ Paid-up Capital: |
Rs.32703.700 Millions |
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CIN No.: [Company Identification
No.] |
L17110MH1973PLC019786 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMRO9795C MUMR00462A |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturers and
Marketers of Fabrics, Polyester Filament Yarn, Polyester Staple Fibres, PTA,
LAB, Ethylene Glycol, PVC, PE, PP, Crude Oil, Gas, Norman Paraffin, Fibre
Fill, Ethylene, Propylene, Benzene, Xylene and Toluene. |
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No. of
Employees: |
23,365
(Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (80) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
Large |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is a
well-established and a reputed company having excellent track. The group’s
activities span exploration and production of oil and gas refining and
marketing, petrochemicals (Polyester, polymers and intermediates), textiles
etc. it has emerged as one of country’s admired business houses. Directors are
reported to be experienced, respectable an The company can
be considered normal for business dealings at usual trade terms and
conditions. The company can
be regarded as a promising business partner in medium to long run. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered
Office/ Corporate
Office : |
3rd
Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021, |
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Tel. No.: |
91-22-30325000 / 30327000 / 22785000 / 22785185 |
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Fax No.: |
91-22-22785111 /
30322268 / 22785185 |
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E-Mail : |
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Website : |
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Head Office : |
Undertaking Polymer Division, Fortune 2000, 5th Floor, C-3,
G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, |
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Corporate
office : |
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Tel No. : |
91-22-30327000 |
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Administrative
Office : |
Chitrakoot, 2nd
Floor, Shree Ram Mills Compound, Ganpatrao Kadam Marg, Worli, Mumbai – 400
013, |
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Tel. No.: |
91-22-24962780/24981163/24981167/24981667-90 |
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Factory : |
Gandhar Complex P. O. Dahej,
Bharuch - 392 130, Hazira Complex Village Mora, Nagothane Complex Patalganga
Complex B-4, Industrial
Area, Patalganga, Off Vadodara Complex P. O.
Petrochemicals, Vadodara - 391 346, Gadimoga Tallarevu
Mandal, East Godavari District, Gadimoga – 533463, Village Meghpar
/ Padana, Taluka Lalpur, Village Moti
Khavdi, Taluka Lalpur, |
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Branch Office : |
Module 15/16, |
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Tel No. : |
91-22-30413483 |
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Fax No. : |
91-22-30411077 |
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Refinery
Complex : |
Taluka Lalpur,
District |
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Corporate |
Maker Chambers
IV, 5th Floor, Nariman Point, Mumbai – 400021, |
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Tel No. : |
91-22-22785568 /
22785585 / 22785000 |
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Fax No. : |
91-22-22785185 |
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Email : |
DIRECTORS
AS ON 31.03.2010
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Name : |
Mr. Mukesh D.
Ambani |
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Designation : |
Chairman and Managing Director |
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Date of
Appointment: |
31.07.2002 |
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Qualification: |
Chemical Engineer from |
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Other
Directorship: |
1) Reliance Europe Limited 2) Reliance Infocomm Limited 3) Reliance Communications Infrastructure Limited 4) Chairman of Indian Petrochemicals Corporation Limited 5) Member of Shareholder’s/Investors Grievance Committee of the
Board. |
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Name : |
Mr. Nikhil R.
Meswani |
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Designation : |
Executive Director |
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Appointment: |
Since 1990 |
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Qualification: |
Chemical Engineer |
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Name : |
Mr. Hital R.
Meswani |
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Designation : |
Executive Director |
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Name : |
Mr. Hardev Singh
Kohli |
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Designation : |
Executive Director |
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Date of
Appointment: |
01.04. 2000 |
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Experience: |
In implementing and operation of petrochemical complexes. |
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Name : |
Mr. Ramiklal H.
Ambani |
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Designation : |
Non Executive Director |
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Name : |
Mr. Mansingh L.
Bhakta |
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Designation : |
Non Executive Director |
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Name : |
Mr. Yogendra P.
Trivedi |
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Designation : |
Non Executive Director |
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Name : |
Dr. Dharam Vir
Kapur |
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Designation : |
Non Executive Director |
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Name : |
Mr. Mahesh P.
Modi |
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Designation : |
Non Executive Director |
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Name : |
Mr. S.
Venkitaramanan |
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Designation : |
Non Executive Director |
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Name : |
Prof. Ashok Mishra |
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Designation : |
Non Executive Director |
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Name : |
Prof. Dipak C Jain |
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Designation : |
Non Executive Director |
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Name : |
Dr. Raghunath A. Mashelkar |
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Designation : |
Director |
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Date of
Appointment : |
09.06.2007 |
KEY EXECUTIVES
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Name : |
Mr. Vinod M. Ambani |
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Designation : |
Company Secretary |
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Name : |
Mr. Kanga and Company |
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Designation : |
Solicitors and Advocates |
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Audit Committee
: |
Mr. Yogendra P.
Trivedi (Chairman) |
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Mr. Mahesh P.
Modi |
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Dr. Raghunath A. Mashelkar |
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Corporate
Governance and Stakeholders' Interface Committee : |
Mr. Yogendra P.
Trivedi (Chairman) |
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Mr. Mahesh P.
Modi |
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Dr. Dharam Vir
Kapur |
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Employees Stock Compensation
Committee : |
Mr. Yogendra P.
Trivedi (Chairman) |
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Mr. Mukesh D.
Ambani |
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Mr. Mahesh P.
Modi |
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Prof. Dipak C.
Jain |
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Finance
Committee : |
Mr. Mukesh D.
Ambani (Chairman) |
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Mr. Nikhil R.
Meswani |
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Mr. Hital R.
Meswani |
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Health, Safety
and Environment
Committee : |
Mr. Hital R.
Meswani (Chairman) |
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Dr. Dharam Vir
Kapur |
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Mr. Pawan Kumar
Kapil |
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Remuneration
Committee : |
Mr. Mansingh L.
Bhakta (Chairman) |
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Mr. Yogendra P.
Trivedi |
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Dr. Dharam Vir
Kapur |
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Shareholders'/Investors' Grievance
Committee : |
Mr. Mansingh L.
Bhakta (Chairman) |
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Mr. Yogendra P.
Trivedi |
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Mr. Nikhil R.
Meswani |
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Mr. Hital R.
Meswani |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
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Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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21,172,026 |
0.65 |
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1,322,280,666 |
40.40 |
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120,471,003 |
3.68 |
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120,471,003 |
3.68 |
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1,463,923,695 |
44.72 |
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Total shareholding of Promoter and Promoter Group (A) |
1,463,923,695 |
44.72 |
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(B) Public Shareholding |
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84,732,846 |
2.59 |
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7,446,135 |
0.23 |
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3,204,229 |
0.10 |
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257,630,215 |
7.87 |
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579,259,479 |
17.70 |
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932,272,904 |
28.48 |
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148,272,831 |
4.53 |
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374,425,343 |
11.44 |
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33,720,430 |
1.03 |
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198,791,065 |
6.07 |
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23,962,514 |
0.73 |
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2,944,927 |
0.09 |
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171,883,624 |
5.25 |
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755,209,669 |
23.07 |
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Total Public shareholding (B) |
1,687,482,573 |
51.55 |
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Total (A)+(B) |
3,151,406,268 |
96.27 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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121,967,740 |
3.73 |
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121,967,740 |
3.73 |
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Total (A)+(B)+(C) |
3,273,374,008 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
TrustsBUSINESS DETAILS
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Line of
Business : |
Manufacturers and Marketers of Fabrics, Polyester Filament Yarn,
Polyester Staple Fibres, PTA, LAB, Ethylene Glycol, PVC, PE, PP, Crude Oil,
Gas, Norman Paraffin, Fibre Fill, Ethylene, Propylene, Benzene, Xylene and
Toluene. |
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Products : |
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Brand Names : |
Recron Apparels, Home
textiles Industrial sewing threads, Automotive Upholstery Recron Fibrefill Sleep Product: Pillows, Cushions, Toys, Quits, Mattresses Recron 3S
Construction
Industry (concrere/mortar), asbestos cement
(sheet and pipe), paper industry
(conventional and speciality), battery industry Recron Stretch Denims,
shirting, suiting, dress material, T- shirt,
sportswear, swimwear Recron Coutluk Shirting, Suiting, furnishing fabric, curtain and
bed sheet Recron Dyefast Knitted cardigan, decorative fabric and home furnishing Recron Superblack Apparel,
automotive, non-woven and interlling Recron Superdye Woven and knitted apparel, furnishing and home textile Fiber Intermediates Raw Material Relpet Packing-water,
soft drinks, beverages, confectionery Repol Packaging-Woven
sacks, TQ and BOPP films, Unipol
containers Relene Packaging-woven
sanks, films Reclair Packaging-films,
squeeze bottles Reon Pipes and
fittings, profiles Relpipe Irrigation,
water supply, drainage, industrial effluents,
telecom cable ducts, gas distribution Relab Detergents Vimal Apparels,
fabrics Harmony Furnishing,
home textiles RueRel Apparels,
Fabrics Vimal V2 Apparels,
Fabrics Reance Suits, shirts
and trousers SlumbeRel Sleep products Refining Refinery of
domestic and Industrial Fuel Oil and Gas Refining, power, Fertilizers and
petrochemicals |
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Exports : |
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County : |
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PRODUCTION STATUS (As on 31.03.2010):-
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
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Refining of Crude
Oil |
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N.A. |
60 |
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Ethylene |
MT |
N.A. |
1883400 |
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Propylene |
MT |
N.A. |
759800 |
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Benzene |
MT |
N.A. |
730000 |
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Toluene |
MT |
N.A. |
197000 |
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Xylene |
MT |
N.A. |
165000 |
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Hydro Cynic Acid ' |
MT |
3600 |
3600 |
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Ethane Propane
Mix |
MT |
N.A. |
450000 |
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Caustic Soda Lye
/ Flakes |
MT |
N.A. |
168000 |
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Chlorine |
MT |
N.A. |
141200 |
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Acrylonitrile |
MT |
N.A. |
41000 |
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Linear Alkyl
Benzene |
MT |
N.A. |
182400 |
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Butadiene and
Other C4s |
MT |
N.A. |
419000 |
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Cyclohexane |
MT |
N.A. |
40000 |
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Paraxylene |
MT |
N.A. |
1856000 |
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Orthoxylene |
MT |
N.A. |
420000 |
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Toluole |
MT |
N.A. |
180000 |
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Poly Vinyl
Chloride |
MT |
N.A. |
625000 |
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High / Linear
Low Density Poly Ethylene |
MT |
N.A. |
1115000 |
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High Density
Polyethylene Pipes |
MT |
N.A. |
80000 |
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Poly Butadiene
Rubber |
MT |
N.A. |
74000 |
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Polypropylene |
MT |
N.A. |
2685200 |
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Mono Ethylene
Glycol |
MT |
N.A. |
733400 |
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Higher Ethylene
Glycol |
MT |
N.A. |
52080 |
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Ethylene Oxide |
MT |
N.A. |
116000 |
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Purified
Terephthalic Acid |
MT |
N.A. |
2050000 |
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Polyester
Filament Yam / Polyester Chips |
MT |
N.A. |
822725+ |
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Polyester Staple
Fibre / Acrylic Fibre / Chips |
MT |
N.A. |
741612 |
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Poly Ethylene
Terephthalate |
MT |
N.A. |
290,000 |
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Polyester Staple
Fibre Fill |
MT |
N.A. |
42,000 |
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Man-made Fibre
Spun Yarn on worsted system |
Nos |
N.A. |
24,094 |
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Man-made fibre
on cotton system (Spindles) |
Nos |
N.A. |
23,040 |
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Man-made Fabrics
(Looms) |
Nos |
N.A. |
335 |
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Knitting M/C |
Nos |
22 |
20 |
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Solar
photovoltaic modules |
M.W |
N.A. |
30 |
PRODUCTION MEANT FOR
|
Products |
Unit |
2009-10 |
|
Crude Oil |
MT |
1021797 |
|
Gas |
BBTU |
435157 |
|
Petroleum Products |
‘000 MT |
46076 |
|
Ethylene |
MT |
357 |
|
Propylene |
MT |
28095 |
|
Benzene |
MT |
662254 |
|
Toluene |
MT |
108963 |
|
Caustic Soda lye / Flakes |
MT |
124138 |
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Acrylonitrile |
MT |
39462 |
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Linear Alkyl Benzene |
MT |
162934 |
|
Butadiene |
MT |
102934 |
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Cyclohexane |
MT |
29269 |
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Paraxylene |
MT |
514938 |
|
Orthoxylene |
MT |
357983 |
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Poly Vinyl Chloride |
MT |
624018 |
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Polyethylene |
MT |
1057906 |
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High Density Polyethylene Pipes
|
Mtrs. In lacs |
96 |
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Poly Butadiene Rubber |
MT |
72894 |
|
Polypropylene |
MT |
2398598 |
|
Ethylene Glycol |
MT |
301509 |
|
Purified Terephthalic Acid |
MT |
610787 |
|
Polyester Filament Yarn |
MT |
796033 |
|
Polyester Staple Fibre |
MT |
627857 |
|
Poly Ethylene Terephthalate |
MT |
314191 |
|
Polyester Staple Fibre Fill |
MT |
59601 |
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Fabrics |
Mtrs. in Lacs |
163 |
GENERAL INFORMATION
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No. of
Employees : |
23,365 (Approximately) |
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Bankers : |
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Facilities : |
1.
Debentures referred to in A above to the extent of: a)
Rs. 22830 Millions are secured by way of first mortgage / charge on the
immovable properties situated at Hazira Complex and at Jamnagar Complex
(other than SEZ unit) of the Company. b)
Rs. 50000 Millions are secured by way of first mortgage / charge on the
immovable properties situated at Jamnagar Complex (other than SEZ unit) of
the Company. c)
Rs. 19700 Millions are secured by way of first mortgage / charge on all the
properties situated at Hazira Complex and at Patalganga Complex of the
Company. d) Rs.
1750 Millions are secured by way of first mortgage / charge on all the
properties, both present and future, of the Refinery Division (other than SEZ
unit) of the Company and excluding book debts, office premises and certain
other properties thereof. e)
Rs.1103.400 Millions are secured by way of first mortgage / charge on certain
properties situated at village Munja Dhanot, District Kalol in the State of f)
Rs. 494.300 Millions are secured by way of first mortgage / charge on certain
properties situated at Ahmedabad in the State of g)
Rs. 440.500 Millions are secured by way of first mortgage / charge on certain
properties situated at h)
Rs. 510.000 Millions are secured by way of first mortgage / charge on movable
and immovable properties situated at Thane in the State of 2.
Debentures referred to in A above are redeemable at par, in one or more
installments, on various dates with the earliest redemption being on 30th
May, 2010 and the last being on 8th December, 2018. The debentures are
redeemable as follows: Rs. 1750 Millions in financial year 2010-11, Rs. 6550
Millions in financial year 2011-12, Rs. 30436.900 Millions in financial year
2012-13, Rs. 44662.600 Millions in financial year 2013-14, Rs. 4088.300
Millions in financial year 2014-15, Rs. 1640.400 Millions in financial year
2015-16, Rs. 1333.300 Millions in financial year 2016-17, Rs. 1333.300
Millions in financial year 2017-18 and Rs. 5033.40 Millions in financial year
2018-19. 3.
Term loans from banks are secured by a first ranking pari passu mortgage over
leasehold interests of the Company’s SEZ unit at Jamnagar under the Land
Lease Agreement and the fixed assets (including plant and machinery) affixed
thereon; a first ranking pari passu charge over movable assets (other than
current assets and investments) of the Company’s SEZ unit; a floating second ranking
charge over such of the current assets of Company’s SEZ unit that are charged
on a first ranking basis to the working capital lenders and an assignment of
SEZ unit’s right, title and interest under the key Project Agreements. 4.
Working capital loans are secured by hypothecation of present and future
stock of raw materials, stock-in-process, finished goods, stores and spares,
book debts, outstanding monies, receivable claims, bills, materials in
transit, etc. save and except receivables of Oil and Gas Division.
Note: Short term loan from banks include commercial paper of Rs.
5000 Millions. (Previous Year Rs. NIL). [Maximum balance outstanding at any time during the Year
being Rs. 85000 Millions (Previous Year Rs. NIL)]. |
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Banking Relations : |
Good |
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Auditors : |
Chaturvedi and Shah Chartered
Accountants Rajendra and Company Chartered Accountants INTERNATIONAL
ACCOUNTANTS
Deloitte Haskins and Sells Chartered Accountants |
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Associates : |
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Subsidiaries : |
1 Reliance Industrial Investments and Holdings Limited 2 Reliance Ventures Limited 3 Reliance Strategic Investments Limited 4 Reliance Industries ( 5 Reliance Jamnagar Infrastructure Limited 6 Reliance Retail Limited 7 Reliance 8 Reliance Haryana SEZ Limited 9 Reliance Fresh Limited 10 Retail Concepts and Services ( 11 Reliance Retail Insurance Broking Limited 12 Reliance Dairy Foods Limited 13 Reliance Exploration and Production DMCC 14 Reliance Retail Finance Limited 15 RESQ Limited 16 Reliance Global Management Services Limited 17 Reliance Commercial Associates Limited 18 Reliancedigital Retail Limited 19 Reliance Financial Distribution and Advisory Services
Limited 20 RIL ( 21 Reliance Hypermart Limited 22 Gapco Kenya Limited 23 Gapco 24 Gapco Tanzania Limited 25 Gapco Uganda Limited 26 Gapoil ( 27 Gapoil Tanzania Limited 28 Gulf 29 Transenergy Kenya Limited 30 Recron ( 31 Reliance Retail Travel and Forex Services Limited 32 Reliance Brands Limited 33 Reliance Footprint Limited 34 Reliance Trends Limited 35 Reliance Wellness Limited 36 Reliance Lifestyle Holdings Limited 37 Reliance Universal Ventures Limited 38 Delight Proteins Limited 39 Reliance Autozone Limited 40 Reliance F and B Services Limited 41 Reliance Gems and Jewels Limited 42 Reliance Integrated Agri Solutions Limited 43 Strategic Manpower Solutions Limited 44 Reliance Agri Products Distribution Limited 45 Reliance Digital Media Limited 46 Reliance Food Processing Solutions Limited 47 Reliance Home Store Limited 48 Reliance Leisures Limited 49 Reliance Loyalty and Analytics Limited 50 Reliance Retail Securities and Broking Company Limited 51 Reliance Supply Chain Solutions Limited 52 Reliance Trade Services Centre Limited 53 Reliance Vantage Retail Limited 54 Reliance International Exploration and Production Inc. 55 Wave Land Developers Limited 56 Reliance-GrandOptical Private Limited 57 Reliance Universal Commercial Limited 58 Reliance Petroinvestments Limited 59 Reliance Global Commercial Limited 60 Reliance Cyprus Limited 61 Reliance People Serve Limited 62 Reliance Infrastructure Management Services Limited 63 Reliance Global Business B.V. 64 Reliance Gas Corporation Limited 65 Reliance Global Energy Services Limited 66 Reliance One Enterprises Limited 67 Reliance Global Energy Services ( 68 Reliance Personal Electronics Limited 69 Reliance Polymers ( 70 Reliance Polyolefins Limited 71 Reliance Aromatics and Petrochemicals Private Limited 72 Reliance Energy and Project Development Private Limited 73 Reliance Chemicals Limited 74 Reliance Universal Enterprises Limited 75 International Oil Trading Limited 76 Reliance Review Cinema Limited 77 Reliance Replay Gaming Limited 78 Reliance Nutritional Food Processors Limited 79 RIL 80 Reliance Commercial Land and Infrastructure Limited 81 Reliance Corporate IT Park Limited 82 Reliance Eminent Trading and Commercial Private Limited 83 Reliance Progressive Traders Private Limited 84 Reliance Prolific Traders Private Limited 85 Reliance Universal Traders Private Limited 86 Reliance Prolific Commercial Private Limited 87 Reliance Comtrade Private Limited 88 Reliance Ambit Trade Private Limited 89 Reliance Petro Marketing Limited 90 LPG Infrastructure ( 91 Reliance Infosolutions Private Limited 92 Reliance Corporate Center Limited 93 Reliance Convention and Exhibition Center Limited 94 95 Reliance International B.V. 96 Reliance Corporate Services Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs.50000.000 Millions |
|
100,00,00,000 |
Preference Shares
|
Rs.10/-each |
Rs.10000.000 Millions |
|
|
Total |
|
Rs.60000.000
Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3270374360 |
Equity Shares |
Rs.10/-each |
Rs.32703.700 Millions |
|
|
|
|
|
Note:
1) Of the above
Equity Shares:
a)
2108563630 Shares out of the issued and subscribed
share capital before the buyback of shares were allotted as Bonus Shares by
capitalization of Securities Premium and Reserves.
b)
652591982 Shares out of the issued and subscribed
share capital before the buyback of shares were allotted pursuant to the
various schemes of amalgamation without payments being received in cash and
includes 10,46,60,154 shares allotted to Petroleum Trust, the sole beneficiary
of which is Reliance Industrial Investments and Holdings Limited, a wholly
owned subsidiary of the Company.
c)
450427345 Shares out of the issued and subscribed
share capital before the buyback of shares were allotted on conversion /
surrender of Debentures and Bonds, conversion of Term Loans, exercise of
warrants against Global Depository Shares (GDS) an
2) In the year 2004-05, the
Company bought back and extinguished 28,69,495 equity shares.
3) The Company has reserved issuance of 138278892 Equity Shares of Rs.10
each for offering to eligible employees of the Company and its subsidiaries
under Employees Stock Option Scheme (ESOS). During the year the Company has
granted any Options to the eligible employees [previous year 100200 options at
a price of Rs.644.50/- plus all applicable taxes, as may be levied in this
regard on the Company]. The options would vest over a period of 7 years from
the date of grant based on specified criteria.
During the year the company has issued and allotted 530426 equity shares
to the eligible employee of the company and its Subsidiaries under ESOS of
which 242222 equity shares were allotted pre-bonus and 288204 equity shares
post bonus.
* Adjusted for issue of bonus shares in 2009-10 in the ratio
of 1:1.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
32703.700 |
15735.300 |
14533.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1339002.400 |
1247301.900 |
783128.100 |
|
|
4] Equity Share Warrants |
0.000 |
692.500 |
16824.000 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
1371706.100 |
1263729.700 |
814486.000 |
|
|
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
116705.000 |
106979.200 |
66001.700 |
|
|
2] Unsecured Loans |
508241.900 |
632065.600 |
298795.100 |
|
|
TOTAL
BORROWING |
624946.900 |
739044.800 |
364796.800 |
|
|
DEFERRED TAX LIABILITY |
109263.000 |
97263.000 |
78725.400 |
|
|
|
|
|
|
|
TOTAL
|
2105916.000 |
2100037.500 |
1258008.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1532598.900 |
1003430.600 |
618836.300 |
|
|
Capital work-in-progress |
121388.200 |
690438.300 |
230058.400 |
|
|
|
|
|
|
|
|
INVESTMENTS |
232286.200 |
216064.900 |
220636.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
Inventories |
269816.200 |
148367.200 |
142475.400 |
|
|
Sundry Debtors |
116602.100 |
45713.800 |
62275.800 |
|
|
Cash & Bank Balances |
134626.500 |
221765.300 |
42800.500 |
|
|
Other Current Assets |
914.000 |
478.600 |
725.400 |
|
|
Loans & Advances |
101832.200 |
130797.800 |
180581.300 |
|
|
Total Current Assets |
623791.000 |
547122.700 |
428858.400 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
360556.000 |
315790.900 |
205904.500 |
|
|
Other Current Liabilities |
7938.000 |
11119.100 |
4550.200 |
|
|
Provisions |
35654.300 |
30109.000 |
29926.200 |
Total Current Liabilities
|
404148.300 |
357019.000 |
240380.900 |
|
|
Net Current Assets |
219642.700 |
190103.700 |
188477.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
TOTAL
|
2105916.000 |
2100037.500 |
1258008.200 |
|
PROFIT &
LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1924610.200 |
1418474.700 |
1334430.000 |
|
|
|
Other Income |
24604.700 |
20598.800 |
56287.900 |
|
|
|
TOTAL (A) |
1949214.900 |
1439073.500 |
1390717.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases |
29958.200 |
22052.700 |
60077.100 |
|
|
|
Manufacturing
and Other Expenses |
1628323.800 |
1167558.900 |
1022622.800 |
|
|
|
Increased / Decreased in Stocks |
(39478.900) |
(4275.600) |
18671.600 |
|
|
|
TOTAL (B) |
1618803.100 |
1185336.000 |
1101371.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
330411.800 |
253747.500 |
289346.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
19972.100 |
17452.300 |
10773.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
310439.700 |
236285.200 |
278572.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
104965.300 |
51952.900 |
48471.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
205474.400 |
184332.300 |
230101.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
43117.700 |
31239.100 |
35518.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
162356.700 |
153093.200 |
194582.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
53841.900 |
43632.900 |
27653.700 |
|
|
|
Amount Available for Appropriations |
0.000 |
0.000 |
481.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
140000.000 |
117289.200 |
160000.000 |
|
|
|
Debenture Redemption Reserve |
1895.000 |
3400.500 |
0.000 |
|
|
|
Interim Dividend on Equity Shares |
0.000 |
18970.500 |
0.000 |
|
|
|
Proposed Dividend on Equity Shares |
20846.700 |
0.000 |
16312.400 |
|
|
|
Tax on Dividend |
3462.400 |
3224.000 |
2772.300 |
|
|
BALANCE CARRIED
TO THE B/S |
49994.500 |
53841.900 |
43632.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value for Exports |
1026556.000 |
868275.200 |
759742.200 |
|
|
|
Interest Earnings |
250.800 |
700.100 |
339.200 |
|
|
|
Other Earnings |
203.200 |
192.500 |
26.200 |
|
|
TOTAL EARNINGS |
1027010.000 |
869167.800 |
760107.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1520830.500 |
1020729.300 |
906199.500 |
|
|
|
Stores & Spares |
14306.300 |
14078.000 |
9638.700 |
|
|
|
Capital Goods |
11902.200 |
65926.900 |
34049.800 |
|
|
TOTAL IMPORTS |
1547039.000 |
1100734.200 |
949888.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
49.65 |
48.63 |
134.19 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
582280.000 |
574790.000 |
597890.000 |
726740.000 |
|
Total Expenditure |
488860.000 |
480830.000 |
502440.000 |
628310.000 |
|
PBIDT (Excl
OI) |
93420.000 |
93960.000 |
95450.000 |
98430.000 |
|
Other Income |
7220.000 |
6720.000 |
7410.000 |
9170.000 |
|
Operating
Profit |
100640.000 |
100680.000 |
102860.000 |
107600.000 |
|
Interest |
5410.000 |
5420.000 |
5490.000 |
6960.000 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
95230.000 |
95260.000 |
97370.000 |
100640.000 |
|
Depreciation |
34850.000 |
33770.000 |
33590.000 |
33870.000 |
|
Profit
Before Tax |
60380.000 |
61490.000 |
63780.000 |
66770.000 |
|
Tax |
11870.000 |
12260.000 |
12420.000 |
13010.000 |
|
Reported PAT |
0.000 |
0.000 |
0.000 |
0.000 |
|
Extraordinary Items |
48510.000 |
49230.000 |
51360.000 |
53760.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
0.000 |
0.000 |
0.000 |
0.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total
Income |
(%) |
8.33 |
10.64 |
13.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.68 |
12.99 |
17.24 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.53 |
11.89 |
21.96 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.14 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.75 |
0.28 |
0.29 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.54 |
1.53 |
1.78 |
LOCAL AGENCY FURTHER INFORMATION
LITIGATION:
CASE
– 1:-
Bench :-
|
Stamp
No. :- |
CAlST/21213/2009 |
Filing
Date:- |
02.09.2009 |
Main Matter
|
Stamp
No. :- |
LPAST/10165/2007 |
Filing
Date:- |
LPA/1122007 |
Petitioner:- S.D. Rane
Petn. Adv.:- Arun D. Nimbalkar
Respondent:- Reliance Industries Limited
District:- Raigad
Bench:- Division
Status:- Pre-Admission
Last Date:- 09.09.2009
Last Coram:- Registrar (Judicial)
Act:- Other Act
PLEASE
NOTE: FUTURE DATES IN CASE OF
PRE-ADMITTED CASES ARE COMPUTER GENERATED PROVISIONAL DATES OF LISTING EXCEPT
WHERE HON'BLE COURTS HAVE GIVEN DUE DATES. THE PROVISIONAL DATES MAY CHANGE,
SUBJECT TO LISTING DIRECTIONS OF THE RESPECTIVE HON'BLE COURTS FROM TIME TO
TIME. PLEASE MONITOR DAILY CAUSELISTS FOR CONFIRMED LISTINGS.
CASE – 2:-
Bench :-
|
Stamp
No. :- |
WPST/9527/2008 |
Filing
Date:- |
11.04.2008 |
Main Matter
|
Stamp
No. :- |
WP/3036/2008 |
Filing
Date:- |
28.04.2008 |
Petitioner:- Pradip Ankush Parkar
Petn. Adv.:- Shri. S.S. Pakale
Respondent:- Reliance Industries Limited
Respondent Adv.:- Junnarkar and Associates
District:- Raigad
Bench:- Single
Status:- Admitted
Stage:- Due Admission
Last Coram:- Hon’ble Smt. Justice Nishita Mhatre
Act:- M.R.T.U. and P.U.L.P. Act
HISTORY
Subject is an India-based company. The company is
Results of
Operations
The year was a transformational year for the Company. The Company has
set new global benchmarks for project execution. This was a landmark
year for the Company for its operating performance with earnings growth
amidst extraordinary challenges of price volatility
and demand reduction.
During the year, the Company has scaled new heights and
set several new benchmarks in terms of sales, profits, networth and
assets. Turnover for the year
was Rs. 2004000 Millions ( $ 44.6 billion) against
Rs. 1463280 Millions in the
previous year. Exports were higher by 24%
at Rs. 1101760 Millions ($ 24.5 billion). Profit
after tax for the year was Rs. 162360 Millions ($ 3.6 billion) as against Rs. 153090 Millions
($ 3.1 billion).
The Company is
one of India's largest
contributors to the
national exchequer primarily
by way of payment of taxes and
duties to various government
agencies. During the year, a total of Rs. 179720 Millions ($ 4.0
billion) was paid in the form of various
taxes and duties.
Overview
The Mantra of Value Creation During the past one year, Reliance Industries Limited (RIL) has commissioned two of the
largest projects of global scale in
the energy sector.
This was achieved
in a period
defined by significantly high capital costs, global
shortage of financial capital and a resource constraint for large scale
projects. The commissioning of these projects
has created several milestones in
RIL's corporate history.
As always, RIL shareholders will be the first to reap
the benefits of the
commissioning of the oil and gas, and petroleum
refining facilities. The issuance
of bonus shares
continues RIL's tradition
of rewarding shareholders on
a consistent basis. RIL
continued to receive
global acknowledgement for its
achievements during the year.
The Company was recently rated by the Boston Consulting
Group as the fifth most sustainable
value creator globally.
The rating also recognises
that RIL's value creation is balanced and well-distributed
among all the stakeholders of the Company.
Also, RIL is the only Indian
company in the list of the top 25 companies in the world.
For the fifth consecutive year, RIL has featured in the Fortune
Global 500 list of the world's largest
corporations.
RIL's current rankings are as follows:
* 264 based on Sales
* 117 based on Profits
Other achievements include:
* RIL, ranked at the 11th
position, was the only Indian company in the
25 A.T. Kearney Global Champions for 2009.
* The Exploration and Production
(E and P) division won the Best
Project of the Year
2009' award for
KG-D6 Block Deepwater
(D1/D3) Gas Fields Development Project
Management Institute,
Successful Project Execution and Commissioning - RIL in the elite
group of global deepwater oil and gas
operators RIL began gas production within
six and a half years of gas discovery, in comparison to the world
average of 9-10 years for
similar deepwater production facilities.
Continuous gas production for
about a year, with 100% uptime, once again demonstrates the Company's flawless commissioning and
execution capabilities.
Key highlights of the KG-D6 project were as follows:
* World's largest gas discovery in 2002
* Among the
world's largest and most complex
deepwater gas production facility in the world
* Tie Back of 60 kms
* Transforming
* Capacity of 550,000 Barrels of Oil Equivalent Per Day (BOEPD)
* Equivalent of 40% of
* Among the fastest deepwater field development projects
* Among the lowest Finding and Development (F and D)
cost per BOE for similar deepwater projects
* Global-scale project management; simultaneous execution in 20
locations
* Among the largest marine construction spread
* Equipment weighing 125,000 Metric Tonnes (MT) installed offshore
* 500 line kms of pipelines and umbilicals
installed Presently, RIL is
producing approximately 60 Million Metric Standard Cubic Meters Per
Day (MMSCMD) of gas
which is being supplied to
several priority sectors identified by the Government of India
under its gas utilisation policy.
Since production commenced in April 2009, the field has produced
over 14.5 billion cubic metres of gas, contributing
significantly to the country's critical industrial sectors.
RIL is enhancing
Production from the Dhirubhai 1
and 3 discoveries of the KG-D6
block is likely to
result in a quantum leap towards
achieving
The gas supply from the KG-D6 facility has already impacted various
aspects of the country's economy including:
* The Index of Industrial Production (IIP) has acknowledged the
significant contribution of production from KG-D6 in the double digit growth
registered by the mining sector.
* With increased availability of gas, production of indigenous fertilisers has increased
and the cost of production reduced,
thereby resulting in savings of about Rs. 40000 Millions p.a.
in Government subsidies.
* There has
been a significant improvement of
30% in gas-based
power generation in the country during the year.
* Production of natural gas from
KG-D6 has also reduced the dependence on
more expensive liquid fuels that were being used in the steel, refining and
petrochemicals sectors.
Within a month of emerging as the
largest producer of natural gas in the country,
RIL announced a successful assessment of the design capacity
of the KG-D6 deepwater gas production facilities in December 2009. A
flow rate of 80 MMSCM was achieved through the KG-D6 facilities and delivered
to the East-West pipeline.
High Quality
Portfolio
RIL's upstream oil and gas
strategy is to identify, evaluate
and capture the highest quality
resource opportunities at the most competitive cost in the
industry. The strength of the balance sheet and the Company’s recent
experience in deepwater exploration and drilling allows RIL to explore for
incremental resource types regardless of life-cycle. This is done across
geological and geographical plays
using cutting-edge technology
and capabilities through partnerships with leading global players. Incremental resource types include unconventional resources such
as shale gas, tight gas,
Coal-Bed Methane (CBM), heavy oil and oil sands that
can provide profitable, long
plateau production systems in addition
to conventional offshore
resources.
RIL's upstream approach
is oriented towards ensuring
greater value by sustained
production growth and an accelerated development of discoveries already made.
This is achieved through ongoing excellence in project execution and
capital efficiency.
Jamnagar-Global Petroleum Refining Hub With the commissioning of the new
refinery in its Special Economic Zone (SEZ),
The secon
resources due to overheated
market conditions from 2005 to 2008.
Building two of the largest and
most complex refineries at the same location, in a decade, is unique in the world of global
refining.
The SEZ refinery
achieved a flawless start, and the
entire complex at
stable manner. It achieved peak
capacity utilisation rate of 120% during the year.
The new refinery
has been designed to be more complex
and flexible as compared
to the first refinery. This enables the new refinery to
capture more opportunities in
value upgradation-from the bottom-of-the-barrel to
highly value added products. The new refinery has the world's largest
Coker and Fluid Catalytic Cracker (FCC) plants. In addition,
it also
has the world's largest
alkylation unit.
Continuing Success
in Exploration and Production
This was yet another successful
period for RIL's oil and gas exploration and production
business. The first oil discovery was made in the
onland exploratory block CB-
ONN-2003/1 (CB 10 A and B) in the Cambay
basin awarded under the NELP-V
round of exploration bidding. RIL holds 100% Participating Interest (PI) in this block. The discovery, named
Dhirubhai-43' has been notified with the
Government of India.
The Company also made its third successive gas discovery in the
exploration block KG-DWN-2003/1 (KGV- D3) of NELP-V. The deepwater block KG-DWN-2003/1 is located in the Krishna basin, about 45 kms
off the coast in the
Financial
Performance
|
Turnover |
Rs. 2004000 Millions |
+37% |
|
|
$ 44,632 million |
+55% |
|
EBITDA |
Rs. 330410 Millions $ 7,359 million
|
+28% +45% |
|
Cash Profit |
Rs. 279330 Millions $ 6,221 million
|
+25% +41% |
|
Net Profit |
Rs. 162360 Millions $ 3,616 million
|
+6% +20% |
The net profit for the year was at Rs. 162360 Millions ($ 3,616
million) with a Compounded Annual Growth
Rate (CAGR) of 21% over the past ten years.
RIL has announced a dividend of 70% amounting to Rs.
24300 Millions ($ 541 million),
including dividend distribution tax. This is one of the highest payout by any private sector company
in
Return on Equity was at 16.4% and
Return on Capital Employed was at 13.9%
for the
year. RIL's net gearing was at 22.3% and the net debt to
equity ratio was 0.31 as on 31 March, 2010.
RIL continues to play a pivotal
role in the growth of
* 14.5% of
* 5.6% of the Government's indirect tax revenues
* 5.7% of the total market capitalisation in
* Weightage of 12.8% in the BSE Sensex
Weightage of 10.6% in the NSE Nifty
Financial Review
RIL delivered superior financial
performance with improvements across key
parameters.
Turnover achieved for the year ended 31 March, 2010 was Rs. 2004000
Millions ($ 44.6 billion),
a growth of 37% over the previous
year. Increase in revenue was due to 50% rise in volumes and
a 13% decline in prices. During the year,
exports including deemed
exports, were higher
by 24% at Rs.1101760 Millions ($ 24.5 billion).
Consumption of raw materials
increased by 41% from Rs. 1048050 Millions
to Rs. 1479190 Millions ($ 32.9
billion). This was mainly on account of
higher crude oil processed in the
SEZ refinery. Traded goods purchases
were Rs. 29960 Millions ($ 667
million) as compared to previous year
of Rs. 22050 Millions.
Employee cost was Rs. 23500
Millions ($ 523 million) for the year as
against Rs. 23980 Millions. The
current year figure includes Rs. 200
Millions towards expenditure incurred
on Voluntary Retirement Scheme/Special Separation Scheme announced for the employees
of certain units.
Corresponding previous year figure was Rs. 1110 Millions.
Operating profit before other income increased by 29% from Rs. 236830
Millions to Rs. 305810 Millions ($ 6.8
billion). Net operating margin for
the period was 15.9% as compared
to 16.7% in the previous year.
Other income was higher at Rs. 24600 Millions ($ 548 million) against
Rs.20600 Millions primarily on account of increase in interest income.
EBITDA increased by 28% from Rs.
257430 Millions to Rs. 330410 Millions
($ 7.4 billion).
Interest cost was higher at Rs. 19970 Millions ($ 445 million)
as against Rs.17450 Millions. Gross interest cost was lower at Rs. 29810
Millions ($ 664 million)
as against Rs. 51420 Millions for
the previous year on account of lower
interest rates and exchange differences.
Interest capitalised was lower
at Rs. 9840 Millions ($ 219 million) as against Rs. 33970 Millions in the
previous year due to commissioning of projects.
Depreciation (including depletion and amortisation) was higher at
Rs.104970 Millions ($ 2.3
billion) against Rs. 51950
Millions in the
previous year primarily on
account of higher depletion charges in oil
and gas and increased depreciation in the refining
business segment.
Profit after tax was Rs. 162360 Millions ($ 3.6 billion) as against Rs.
153090 Millions for the previous year, an increase of 6%. Earning
per share (EPS) post allotment of bonus shares for the
year was Rs. 49.7 ($ 1.1).
During the year, the Company
allotted 6,92,52,623 equity shares of Rs.
10 each to the
equity shareholders of the
amalgamating company, Reliance Petroleum Limited.
The Company also issued and
allotted 162,67,93,078 equity
shares to the eligible holders of equity shares in November 2009 as bonus by capitalising reserves. During the
year, the Company has issued and allotted 5,30,426 equity shares to the
eligible employees under ESOS. As a
result, the Company's equity share capital now stands at Rs. 32700 Millions.
Capital expenditure during the
year was Rs. 219430 Millions ($ 4.9 billion) primarily on
account of exploration and production,
SEZ refinery and implementation of
several value maximisation
projects. Details of the
capital expenditure undertaken during the year are as follows:
|
|
|
(In Rs. Millions) |
|
|
FY 2009-10 |
FY 2008-09 |
|
Oil and Gas (E and P) |
118130 |
102700 |
|
Refining and Marketing |
93830 |
102870 |
|
Petrochemicals |
7300 |
25140 |
|
Common |
170 |
16420 |
|
TOTAL |
219430 |
247130 |
During the year, a total of Rs.
179720 Millions ($ 4.0 billion) was
paid in the form of taxes and
duties.
RIL maintained its status as
RIL exported to 123 countries
around the world. Exports represent
55% of the RIL's turnover. Petroleum products constitute
85% and
petrochemicals contribute 15% of the total exports.
Business Review
Oil and Gas
Exploration and Production
The economic crisis left an
impact on the oil and gas industry globally. The
economic downturn that followed
resulted in unprecedented
demand destruction. The industry
is on a path of recovery due to fiscal
measures announced by various
governments. The major deepwater basins of the
world namely the East coast of
The structural theme
for investment in the sector remains
valid. The world's insatiable
need for reliable and affordable energy
continues to grow unabated. This
calls for substantial investments, access to
resources and newer technologies to unlock resources from challenging
locations. The International Energy
Agency (IEA), in its World
Energy Outlook 2009, estimates that
by the year 2030, global
energy demand is
expected to increase by 49% from
its current level. Oil and natural gas are expected to remain primary energy sources and are expected to
meet 51% of the global demand. Natural gas, a low-carbon,
lowpolluting green fuel-that flows from
RIL's blocks, is
creating unprecedented value
for the Company's shareholders and benefiting
IEA estimates that
the worl
FY 2009-10 was a year of steady growth. Oil prices rose from an
average of $ 46/barrel
(bbl) in January 2009 to touch $
75/bbl in December
2009. Average WTI prices remained at $ 70/bbl vis-a-vis $86/bbl for the previous
year. Henry Hub natural gas price
averaged at $ 4/Million Metric British Thermal Unit (MMBTU) for FY 2009-10 as against an
average of $ 7.87/MMBTU in FY 2008-09.
The year 2009 also saw the global oil demand slip to 84.93 MBPD, a
decrease of 1.5% over
2008. IEA forecasts that the global oil demand is
set to increase by 1.67 MBPD or
2.0% to 86.60 MBPD in 2010.
Global Natural Gas
Market Growing
Globally, natural gas constitutes
24% of the energy basket while in
The share of gas in the energy mix is expected to increase to nearly 23%
in 2031-32 mainly due to the increasing demand from the industrial
sector, power sector, gas
distribution in cities and opportunities in the
gas-to-liquids business.
Sizeable investments globally over the last few years in developing
the natural gas business an
Energy Landscape
in
The Indian economy has been
growing steadily in the range of 8-9%
in the recent past (6.7% in FY
2008-09) and is expected to maintain its status
as one of the
fastest growing economies in the
world with long term
GDP growth estimated to be around 9%. Driven by strong economic
growth, energy consumption in
Policy of the Planning Commission, Government of India,
The East coast of
Cauvery-Palar basin.
RIL has more than 25 blocks in the East coast of
Gas production from KG-D6 was
started in a record time of six and
a half years. The production from
this block is expected to provide a quantum leap in energy security to the
country. The Krishna-Godavari basin find has been one of the
most important development catalyst to
various sectors like power, fertilisers, petrochemicals,
refineries, gas distribution in cities, etc thereby ensuring energy and food
security for the country.
The natural gas sector in the country is evolving and becoming competitive due to
the Government's proactive
regulatory approach with respect
to policies in upstream,
midstream and downstream. This has led
to enhanced investments by
various players and the emergence of competitive markets.
RIL's E and P
Business : KG-D6
KG-D6 completed 365 days of 100%
uptime and zeroincident production. Gas production from
KG-D6 has ramped up to 60 MMSCMD
in a short span of 9
months from commencement. Current production of about 60 MMSCMD is from 16 wells. The design capacity of the KG-D6
deepwater gas production facilities were
assessed and achieved a flow rate
of 80 MMSCM. During FY
2009-10, total gas production was 14,397 MMSCM.
Six wells from the D26 oil field in the block are under production.
Gas produced from the D26 field
was exported to the Onshore Terminal
(OT) in the months of November
2009, December 2009 and February 2010.
Oil production from
the D26 field now exceeds 35,000
barrels per day. During
the FY 2009-10, total oil production from this
field was 4.04 million barrels.
The facility has undergone extensive quality assurance and quality control audits with the support of international experts
like Det Norske Veritas (DNV), Ward Associates and Shell
Global Solutions. The pipeline network was
put through nitrogen helium tests for leak tests and pressure
points. More than 1,000 punch points
were addressed within six months, eliminating
risk factors. Fatigue tests were also carried out on installed infrastructure
to ensure their ability to support the planned 25-year lifespan of the field. The
entire development was
put through stringent
quality checks in compliance
with the applicable standards, and organisational and
project policies. DNV has carried out certification and verification of
all works. DNV reviewed and verified
engineering, fabrication and installation of
all offshore facilities. DNV also carried out the Hazard Identification and Hazard
and Operational Study through the different stages of the project. Other independent
surveyors have included Lloyd's
Register and Moody's International. Extensive and intensive checks were done on
all equipment, which included Factory Acceptance Test, Extended
Factory Acceptance Test, Systems Integrity
Test and Site Acceptance Test
prior to installation. Multiple levels
of inspection were undertaken by
manufacturer's Quality Control
(QC) team, RIL's QC team and third party QC teams to ensure nothing was left
to chance. For the purpose of gas
marketing, GSPAs have
been executed with more than 50 customers in the fertiliser,
power, city gas distribution, steel, LPG, refinery and
petrochemical sectors.
As part of appraisal activities
of 4 discoveries in the southern
part of the KG-D6 block, RIL
successfully drilled 4 appraisal wells in FY
2009-10. The commerciality of these discoveries has been submitted.
In the KG-D6 block, further to
the submission of the development
plan in 2008 for the 9 satellite
gas discoveries, an optimised development plan for prioritising 4 satellite gas discoveries was submitted to
the Directorate General of Hydrocarbons
(DGH) in December 2009.
An integrated development plan
for all gas discoveries in the block
KG-D6 is being conceptualised to maximise capital efficiency
and accelerate monetisation.
Global Industry
Overview
The world oil demand in 2009 stood at 84.9 MBPD, a
decline of 1.28 MBPD over 2008. As per the IEA, OECD demand
in 2009 for oil fell by 4.4% to 45.5 MBPD on a y-o-y basis while the non-OECD
deman
OPEC responded and targeted a
compliance of 80-85% to the
production cut levels. However,
some countries increased their production towards the end of the year resulting in the compliance
level dropping to 55% by the end of the year.
The world witnessed low levels of
industrial production and global trade.
The economic downturn reduced light product demand an
of crude by
Performance Review
The consolidation of Reliance Petroleum Limited's refining
assets with RIL's existing
refinery in
What set RIL apart in the context of global refining is the
complexity and he scale of its refineries. The two
To support
Since inception a decade ago, RIL has been able to outperform the
benchmark
There are two ways in which RIL
has been able to outperform the
benchmark index. The complexity of the
RIL processed 60.9
million tonnes of
crude and clocked
an average utilisation of
98.3%, significantly higher than the
average utilisation rates for refineries globally. Exports of refined
products were at $ 20.9 billion. This accounted for 32.8 million tonnes of
product as compared to 22.6 million
tonnes in the previous year.
Production of Petroleum Products [in Kilo Tonnes (KT)]
Product
FY 2009-10 FY 2008-09
Gases and distillates
51,400 28,000
Fuel oils and solids
9,400 4,450
Total production 60,800
32,450
Technology
Development and Innovation
At RIL, a team of more than 100 engineers and scientists is driving
various Research and Technology
(R and T) efforts in the
refining arena.
of FCC catalysts
and additives, along
with the state-of-the-art laboratory/analytical facilities for advanced crude
characterization, NMR /Infrared
Spectroscopy, Inductively Coupled Plasma (ICP) analyzer etc.
R and T has been
making extensive use of various
advanced techniques like simulation, mathematical
modeling, Computational Fluid
Dynamics (CFD) modelling, and
many others to support refining operations, improve product quality, optimise yield of high value
products like propylene/LPG/gasoline
from FCC
unit and enhance
bottom-of-the-barrel processing. Further
to improve refinery margin, R and T has developed technology for
processing heavy and high TAN
opportunity crudes.
RIL's SEZ Refinery
RIL commissioned its new refinery in the SEZ at
polypropylene per annum.
The new refinery is the sixth
largest in the
world and has a Nelson Complexity Index of 14.0, making amnagar the
largest and most complex refinery site in the world. This refinery has more
than 40 process units apart from a large
network of offsites, utilities and other
Infrastructure facilities.
The SEZ refinery has a unique
design and path breaking configuration
with Clean Fuels' process plant. It is designed with high level of flexibility to change grades based on economy and to capture
margins based on market dynamics. The new SEZ refinery is the first refinery in
The new refinery has some of the world's largest units:
* FCC with Rx Cat technology for maximum propylene production
* Coker - with most advance safety features.
* Alkylation plant (based on Sulphuric acid technology)
* Light Cycle Oil (LCO) hydrocracker
The refinery complex is designed
for total water conservation. It has its
own desalination plant and carries out complete recycling of effluent with zero
discharge. It has a state-of-the-art centralised
control centre, laboratory, fire station and a large green belt. The
green belt has been developed across the boundary of the
refinery and has got 2.3 million trees and 0.8 million mangroves. It has over 1
million mango trees - probably the
largest mango plantation in
It has been an exemplary, historical and a flawless start-up of a
chain of plants in a safe, secure and an incident free
manner. The activities were carried out in a seamless manner such that not even a
single day was lost
between construction completion and commissioning of the
refinery. All units were
commissioned in shortest possible time schedule in spite of the tight interdependencies between various
units.
The refinery attained a significant milestone by fully
stabilizing the operations in a record time. All its process
units have successfully demonstrated their ability to operate smoothly and safely,
producing high quality transportation
fuels. All key processing units at the refinery
are operating at their peak design capacity. The refinery
has successfully processed more
than 60 types of crude oils, including difficult crude oils within
a few months of its start-up, thus reflecting superior quality
of assets and capabilities.
Viewed in the
context of market
conditions, this is
a significant achievement an
Domestic Petroleum
Marketing
Consistent high rate of growth over the past few years resulted in deficit of
key petroleum products in the
country. With planned introduction
of Euro-III and Euro-IV grade of transportation fuels, these
deficits are likely to increase
going forward. RIL decided to convert its refinery from EOU
to Domestic Tariff Area (DTA) to meet these domestic
deficits and commenced supplies
to PSU oil companies from May 2009.
With softening of
crude and product prices last
year, RIL restarted domestic petroleum
retail operations in southern
and western states. Domestic retail marketing however
continues to suffer due to lack of level
playing field to private oil marketing
companies. Hence operations in all
geographies and scaling up of sales would only be possible once prices are market determined or level playing field
is brought for private players as well.
In February 2010, the Kirit
Parikh committee made recommendations
to the Government to allow free market pricing for gasoline and diesel, and to
raise administered prices
for kerosene and LPG. The report
recommends raising LPG prices by Rs. 100 per cylinder and at least
Rs. 6/litre for kerosene. It is yet to be seen whether
any of these suggestions will be put into practice and what affect that will
have on petroleum product demand in
Aviation Turbine Fuel
(ATF) demand has seen some
stabilisation with a growth of 3.9% in FY 2009-10 as against
negative growth of 1.9% in FY 2008-09.
RIL is present at 24 airports in
The demand for petcoke in
The annual sulphur
demand of 3.4 million tonnes in
GAPCO
RIL consolidated the operations
of its GAPCO subsidiaries in
Special initiatives to improve the supply infrastructure and sales volumes have
led to superior productivity and higher throughputs.
The
GAPCO is also emerging as a key supplier to neighbouring countries
and has signed a
term contract for supplies to
TRADE REFERENCES:
·
Accurate
Paper Tube
·
Aditya
Forge Limited
·
Agencies
(
·
Aico
Agencies Private Limited
·
Aksh
India Limited
·
Ambica
Textiles
·
Anil
Industrial Components
·
Associated
Chemicals
·
Associated
Products
·
Bhandari
Industries
·
Billimoria
(
·
CEAG
Flameproof Control Gear Private Limited
·
Colloids
·
Elite
Printers
·
Fibro
Chemicals
·
Geecy
Engineering Private Limited
·
Harisidh
Engineering Works
·
IPSA
Chemicals Private Limited
·
Nec
Containers Private Limited
·
PITICO
Chemicals
·
Paper
Converters (Private) Limited
Fixed Assets
·
·
·
Building
·
Plant
and Machinery
·
Electrical
Installations
·
Equipments
·
Furniture
and Fixture
·
Vehicles
·
Aircraft
and Helicopter
·
Ship
·
Software
WEBSITE DETAILS
The company is
The originally envisaged capacity was substantially enhanced while
implementing the project and it commissioned its 27 mmtpa refinery (540000
ballers per day) within a very short period of less then 36 months at a project
cost of Rs.142500 millions (US $ 3.4 bn). The company is the world's largest
grassroots refinery and the seventh largest refinery in the world at any single
site. The refinery has been set up at 30%-50% lower per tone capital cost as
competed to other refineries recently set up in Asia, by leading international
oil companies, establishing new benchmark for capital productivity. It also has
a remarkable ability to use almost any kind of crude oil. The company's
products have been exported to a large number of destinations in the Far East,
Europe and the
The setting up of the Central India pipeline project, which envisages
setting up a 1615-km pipeline to serve the landlocked markets in central
The
company has passed a resolution to sponsor a depository receipt Programme
enabling shareholders of the company (Reliance Industries) to partially
disinvest their equity shareholding in the company at an appropriate time in
the course of an international offering in one or more trances to strategic
investors, financial investors and any other investor in the form of depository
receipts and any other financial instruments subject to necessary approvals.
The company will focus on its high value-added product ranges of men's
wear, under the Vimal brand, and home textiles, under the Harmony brand. Other
textile products, including women's wear products, will be phased out, and the
polyester filament yarn processing business will be re-located.
The first phase of restructuring will lead to a reduction of over 4,600
people from the company's total workforce, at an estimated one-time outlay of
Rs.900.00 millions, in an amicable manner within a span of two weeks
It has increased its stake in equity share capital of BSES, an electric
utility company, through open offer to 27%. Further it has announced the
largest share buy back of Rs.1,1000 millions at a maximum price of Rs.303/- per
share. The company proposes to invest Rs.2,50,000 millions over the next 3 to 5
years in the telecom sector covering basic, cellular, long distance,
international, voice, data services by setting up a broadband network
throughout
PROFILE:
Reliance's philosophy of 'Growth is Life' has truly
manifested itself in value creation opportunities for its myriad stakeholders,
which include its valued customers.
The focus on Growth has helped grow as one of the world's
largest producers of polymers. Their current polymer production capacity of 3.5
million tonnes per annum of Polypropylene, Polyethylene and Polyvinyl Chloride
woul
This growth has been achieved with state-of-the-art world
scale projects and setting global benchmarks in product quality, standards and
services.
Reliance's sites at Hazira, Vadodara, Gandhar in Gujarat and
Nagothane in
At Reliance their constant endeavour is to provide products
and services that meet global standards. Based on their extensive interaction
with the industry, they offer a wide range of grades for diverse applications
across packaging, agriculture, automotive, housing, healthcare, water and gas
transportation and consumer durables.
Superior technologies, strong focus on R and D, latest
IT-enabled services to support supply chain management and the end-to-end
solutions offered across the value chain reinforce their commitment to customer
satisfaction.
RELIANCE GROUP
The
Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is
Backward
vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies, Reliance pursued a
strategy of backward vertical integration - in polyester, fibre intermediates,
plastics, petrochemicals, petroleum refining and oil and gas exploration and
production - to be fully integrated along the materials and energy value chain.
The
Group's activities span exploration and production of oil and gas, petroleum
refining and marketing, petrochemicals (polyester, fibre intermediates,
plastics and chemicals), textiles, retail and spacial economic zones.
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.
The
Group exports products in excess of US$ 20 billion to 108 countries in the
world. Major Group Companies are Reliance Industries Limited (including main
subsidiaries Reliance Petroleum Limited and Reliance Retail Limited) and Reliance
Industrial Infrastructure Limited.
GROWTH
THROUGH GOVERNANCE
Reliance is in the forefront of implementation of Corporate Governance best
practices
Corporate Governance at Reliance is based on the following
main principles:
- Constitution of a Board of Directors of appropriate composition,
size, varied expertise and commitment to discharge its responsibilities
and duties.
- Ensuring timely flow of information to the Board and its Committees
to enable them to discharge their functions effectively.
- Independent verification and safeguarding integrity of the
Company’s financial reporting.
- A sound system of risk management and internal control.
- Timely and balanced disclosure of all material information
concerning the Company to all stakeholders.
- Transparency and accountability.
- Compliance with all the applicable rules an
- Fair and equitable treatment of all its stakeholders including
employees, customers, shareholders and investors.
MEDIA RELEASE:
Mumbai, 30th October 2010
HIGHEST EVER HALF YEAR REVENUE, PBDIT AND NET PROFIT
NET PROFIT US$ 2.2 BILLION FOR THE HALF YEAR
PBDIT OF US$ 4.5 BILLION FOR THE HALF YEAR
KG D6 CUMULATIVE GAS PRODUCTION OF OVER 25 BILLION CUBIC
METERS
Reliance Industries Limited (RIL) today reported its financial performance
for the quarter / half year ended 30th September, 2010. Highlights of the
un-audited financial results as compared to the corresponding period of the
previous year are:
|
(In Rs.
millions) |
2Q FY11 |
1Q FY11 |
2Q FY10 |
% Change wrt 2Q FY10 |
1H FY11 |
1H FY10 |
% Change wrt 1H FY10 |
|
Turnover |
599620.000 |
610070.000 |
488430.000 |
22.8% |
1209690.000 |
812840.000 |
48.8% |
|
PBDIT |
100680.000 |
100640.000 |
78450.000 |
28.3% |
201320.000 |
149390.000 |
34.8% |
|
Profit Before Tax |
61490.000 |
60380.000 |
49510.000 |
24.2% |
121870.000 |
97060.000 |
25.6% |
|
Net Profit |
49230.000 |
48510.000 |
38520.000 |
27.8% |
97740.000 |
75180.000 |
30.0% |
|
EPS (`) |
15.1 |
14.8 |
11.8 |
29.9 |
23.0 |
|
|
Highlights of Half
Year’s Performance
· Turnover increased by 48.8% to Rs.1209690.000 millions (US$ 26.9 billion)
· Exports increased by 55.5% to Rs.669360.000 millions (US$ 14.9 billion)
· PBDIT increased by 34.8% and achieved a record level of Rs.201320.000 millions (US$ 4.5 billion)
· Profit Before Tax increased by 25.6% to Rs.121870.000 millions (US$ 2.7 billion)
· Cash Profit increased by 37.1% to Rs.170360.000 millions (US$ 3.8 billion)
· Net Profit increased by 30.0% to Rs.97740.000 millions (US$ 2.2 billion)
· Gross Refining Margin at US$ 7.9 / bbl for the quarter and US$ 7.7 / bbl for the half year ended 30th September 2010
CORPORATE
HIGHLIGHTS
- The Hon'ble Supreme Court of India delivered its judgment in the RNRL - RIL legal dispute.
The judgment recognized the dominant role of the provisions of the Production Sharing Contract and upheld the policies formulated by the Government under which it has the authority to regulate the production and distribution of natural gas.
- RIL and RNRL signed a Gas Supply Master Agreement in compliance with the Gas Utilization Policy and EGOM decisions.
- RIL and Reliance ADA Group companies approved and signed an Agreement canceling all existing non-compete arrangements entered into between the two groups in January 2006 pursuant to the scheme of reorganization of the Reliance Group and entered into a new simpler, Non Compete Agreement with respect to only Gas Based Power Generation.
- RIL’s subsidiary, Infotel Broadband Services Limited, has emerged as a successful bidder in all the 22 circles of the auction for Broadband Wireless Access (BWA) Spectrum conducted by the DoT.
- RIL through its subsidiary, Reliance Marcellus LLC, has entered into a joint venture with United States based Atlas Energy, Inc., of Pittsburgh, Pennsylvania under which Reliance acquired 40% interest in Atlas's core Marcellus Shale acreage position.
- RIL through its subsidiary, Reliance Eagleford Upstream Holding LP, has entered into a joint venture with United States based Pioneer Natural Resources Company, of Irving, Texas under which Reliance acquired 45% interest in Pioneer's core Eagle Ford Shale acreage position.
- RIL
through its subsidiary, Reliance Marcellus II LLC, has entered into a
joint venture with United States based Carrizo Oil and Gas Inc.. Reliance
acquired 60% interest in Marcellus Shale acreage in Central and
- RIL
and SIBUR,
- Reliance
through its subsidiary, has invested in Deccan 360,
- Reliance, through its wholly owned subsidiary Reliance Industries Investment and Holding Private Limited, currently holds 14.80% of EIH Limited.
Commenting on the
results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries
Limited said:
“Improved refining margins and high operating
rates at all our manufacturing facilities led to a record quarter. We are
focused on identifying opportunities that leverage
FINANCIAL
PERFORMANCE REVIEW AND ANALYSIS
Turnover achieved
for the half year ended 30th September 2010 was Rs.1209690.000 millions (US$ 26.9
billion), an increase of 48.8% over the corresponding period of the previous
year. Increase in volume accounted for 28.8% growth in revenue and higher
prices accounted for 20.0% growth in revenue. Exports were higher by 55.5% at Rs.669360.000
millions
(US$ 14.9 billion) as against Rs.430350.000 millions in the
corresponding period of the previous year.
Consumption of raw
materials increased by 43.7% to Rs.893900.000 millions (US$ 19.9
billion) mainly on account of higher crude oil prices as well as higher volume
of crude oil processed in the SEZ refinery. Purchases for traded goods
decreased from Rs.15950.000 millions to Rs.7900.000 millions.
Employee costs
were at Rs.12770.000 millions (US$ 284 million) for the half year as against Rs.11530.000
millions
reflecting increased payout to employees.
Other expenditure
increased by 37.3% from Rs.54260.000 millions to Rs.74520.000 millions (US$ 1.7 billion)
due to higher selling expenses on additional volumes, royalty on higher oil and
gas production, higher shutdown expenses, and exchange difference.
Operating profit
before other income and depreciation increased by 37.8% from Rs.136010.000
millions to Rs.187380.000
millions
(US$ 4.2 billion). Net operating margin was lower at 15.5% as compared to 16.7%
in the corresponding period of the previous year due to base effect and softer
margin environment in petrochemicals partially offset by incremental share of
the higher margin Oil and Gas business and improved refinery margins.
Other income was marginally higher at Rs.13940.000 millions (US$ 310 million)
as against Rs.13370.000 millions as compared to the corresponding period of the
previous year primarily due to higher average cash balances.
Depreciation
(including Depletion and Amortization) was higher by 59.2% at Rs.68620.000
millions
(US$ 1.5 billion) against Rs.43100.000 millions in the corresponding period of the previous
year primarily on account of higher depletion charge in Oil and Gas and
increased depreciation in the Refining business.
Interest cost was
higher at Rs.10830.000 millions (US$ 241 million) as against Rs.9220.000
millions in
the corresponding period of the previous year principally due to lower
capitalization of interest charges. Gross interest cost was lower at Rs.13110.000
millions
(US$ 292 million) as against Rs.16810.000 millions for the
corresponding period of the previous year on account of lower interest rates.
Interest capitalized was lower at Rs.2280.000 millions (US$ 51 million)
as against Rs.7580.000 millions due to commissioning of KG D6 and SEZ projects in
the corresponding period of the previous year.
Profit after tax
was Rs.97740.000 millions (US$ 2.2 billion) as against Rs.75180.000
millions for
the corresponding period of the previous year.
Basic earnings per
share (EPS) post allotment of Bonus Shares for the half year ended 30th
September 2010 was Rs.29.9 (US$ 0.7) against Rs.23.0 for the corresponding
period of the previous year.
Outstanding debt
as on 30th September 2010 was Rs.681980.000 millions (US$ 15.2
billion) compared to Rs.624950.000 millions as on 31st March 2010. Net gearing as on
30th September 2010 was 20.3% as against 22.0% as on 31st March 2010.
RIL had cash and
cash equivalents of Rs.293540.000 millions (US$ 6.5 billion). These were in fixed
deposits, certificate of deposits with banks, mutual funds and Government
securities / bonds. RIL’s net debt was equivalent to 1.0 time annualized PBDIT
for the half year ended 30th September 2010.
The net capital expenditure towards projects for the half year ended
30th September 2010 was Rs.32960.000 millions (US$ 733 million).
RIL has domestic
credit ratings of AAA from CRISIL and FITCH. RIL has investment grade ratings
for its international debt from Moody’s and S and P as Baa2 and BBB respectively.
Fitch has revised its RIL’s long-term Local Currency Issuer Default Rating (LC
IDR) to 'BBB' from 'BBB-'.
OIL AND GAS (EXPLORATION and PRODUCTION) BUSINESS
|
(In Rs.
millions) |
2Q FY11 |
1Q FY11 |
2Q FY10 |
% Change wrt 2Q FY10 |
1H FY11 |
1H FY10 |
% Change wrt 1H FY10 |
|
Segment Revenue |
43030.000 |
46650.000 |
29370.000 |
46.5% |
89680.000 |
48010.000 |
86.8% |
|
Segment EBIT |
17060.000 |
19210.000 |
12260.000 |
39.2% |
36270.000 |
22340.000 |
62.4% |
|
EBIT Margin (%) |
39.6% |
41.2% |
41.7% |
|
|
40.4% |
46.5% |
During the period, higher quantities of oil, gas and condensate
production from KG D6 led to the growth in revenue. However, this growth was
partly offset by lower production from Panna-Mukta and Tapti fields. EBIT
margins reduced primarily due to higher proportion of KG D6 as compared to PMT
due to shutdown in Panna-Mukta fields.
DOMESTIC
OPERATIONS
KG D6
Current production
of about 58 MMSCMD is taken from 16 wells of D1 / D3 and 5 wells of D26 fields.
The production of gas condensate from D26 fields commenced from 21st April
2010.
For the half year
ended 30th September 2010, production from KG D6 was 583,348 tonnes of crude
oil, and 10,699 MMSCM of natural gas, a growth of 163% and 122% respectively as
the oil and gas production was under ramp up during the corresponding period of
the previous year. During the period, production of gas condensate stood at
35,742 tonnes.
In line with the Government of India’s gas utilization policy, GSPAs for
KGD6 gas have been executed and operational with about 57 customers in the
fertilizers, power, city gas distribution, steel, LPG, refinery and
petrochemical sectors. During the quarter ended 30th September 2010, GSPAs with
three power plants were signed.
Panna-Mukta and
Tapti (PMT)
Production from
Panna-Mukta was 613 MMSCM of natural gas, reduction of 33% and 490,600 tonnes
of crude oil, reduction of 41% as compared to the corresponding period of the
previous year. The reduction in production was attributed to following
shutdowns –
· Six days shutdown in Panna in April 2010
· Failure of sub-sea hose system and parting of anchor chains to the SBM on 20th July 2010. Installation of new anchor chains and sub-sea hose assembly has been completed and the production has resumed from 25th October 2010.
Production from
Tapti was 1,459 MMSCM of natural gas and 79,600 tonnes of condensate, a
decrease of 10% and 20% respectively over the corresponding period of the
previous year. The decrease in production was due to natural reserves decline.
Other Domestic
Blocks
During the half
year, following six discoveries were notified to Directorate General of
Hydrocarbons (DGH) –
· Dhirubhai-47 in Well AF1 in CB10 block
· Dhirubhai-48 in Well AJ1 in CB10 block
· Dhirubhai-49 in Well AT1 in CB10 block
· Dhirubhai-50 in Well AN1 in CB10 block
· Dhirubhai-51 in Well AR1 in CB10 block
· Dhirubhai-52 in Well W1 in KGVD3 block
Currently, two deepwater rigs are under operation for Exploration and
one additional rig is expected in second half of the FY 2010-11.
INTERNATIONAL
OPERATIONS
Conventional
The International
business comprises of 14 blocks with acreage of over 102,385 square kilometers
in
Reliance has
farmed-out 30% of its Participating Interest (PI) in Oman-Block 18, 25% in
Oman-Block 41 and 20% in Colombia Borjo North and Borjo South.
Shale Gas (Atlas)
RIL through its
Subsidiary, Reliance Marcellus LLC, has entered into a joint venture with
United States based Atlas Energy, Inc., of Pittsburgh, Pennsylvania under which
Reliance acquired a 40% interest in Atlas’s core Marcellus Shale acreage
position. The acreage will support the drilling of over 3,000 wells with a net
resource potential of approximately 13.3 TCFe (5.3 TCFe net to Reliance).
Shale Gas
(Pioneer)
RIL through its Subsidiary, Reliance Eagleford Upstream Holding LP, has
entered into a joint venture with United States based Pioneer Natural Resources
Company, of Irving, Texas under which Reliance acquired a 45% interest in
Pioneer’s core Eagle Ford Shale acreage position. The acreage will support the
drilling of over 1,750 wells with a net resource potential to the joint venture
of approximately 10 TCFe (4.5 TCFe net to RIL).
Shale Gas
(Carrizo)
RIL through its
subsidiary, Reliance Marcellus II LLC, has entered into a joint venture with
Reliance became a
partner in approximately 104,400 net acres of undeveloped leasehold in the core
area of the Marcellus Shale in Central and
The acreage will support the drilling of approximately 1,000 wells with
a net resource potential of approximately 3.4 TCFe (2.0 TCFe net to Reliance).
REFINING and MARKETING BUSINESS
|
(In Rs.
millions) |
2Q FY11 |
1Q FY11 |
2Q FY10 |
% Change wrt 2Q FY10 |
1H FY11 |
1H FY10 |
% Change wrt 1H FY10 |
|
Segment Revenue |
496720.000 |
505310.000 |
395640.000 |
25.5% |
1002030.000 |
639980.000 |
56.6% |
|
Segment EBIT |
21920.000 |
20350.000 |
13470.000 |
62.7% |
42270.000 |
26460.000 |
59.8% |
|
EBIT Margin (%) |
4.4% |
4.0% |
3.4% |
|
4.2% |
4.1% |
|
|
GRM ($ / bbl) |
7.9 |
7.3 |
6.0 |
|
7.7 |
6.3 |
|
During the half year ended 30th September 2010, 33.8 million tonnes of
crude was refined by the refineries reflecting an average utilization rate of
109%. This was the highest operating rate in the world, reflecting RIL‟s
leadership in operating the assets and the global acceptance of the products.
In comparison, average refinery utilization rate was 85.2% in North America,
77.6% in Europe and 82.6% in the
During the period, the refinery utilization rates improved in all the
major markets of US, Europe and
Revenue for the
Refining and Marketing segment increased by 56.6% from Rs.639980.000
millions to Rs.1002030.000
millions
(US$ 22.3 billion) mainly due to incremental volumes coming from SEZ refinery.
Increase in volume accounted for 30.8% growth in revenue and higher prices
accounted for 25.8% growth in revenue. On trailing quarter basis, refining segment
revenues were marginally lower due to reduced sales of HSD into the domestic
market.
Exports of refined
products were US$ 13.4 billion as against US$ 7.5 billion during the
corresponding period of the previous year. This accounted for about 19.7 million
tonnes of products as against 13.2 million tonnes during the corresponding
period of the previous year due to increased export volumes from SEZ refinery.
On trailing
quarter basis, refining margins in US and
During the period,
Arab light - Arab heavy crude differential expanded by nearly US$ 1 / bbl as
compared to the corresponding period of the previous year primarily due to weak
fuel oil cracks and higher demand for lighter products resulting in higher
demand for lighter crude. On trailing quarter basis, Arab light - Arab heavy
crude differential improved marginally due to largely unchanged OPEC quota and
compliance level.
Gasoline cracks
were weaker in comparison to the trailing quarter in most of the major markets
due to weak seasonal demand further impacted by higher supply and inventory
levels.
Higher demand and increased industrial / construction activity resulted
in stronger gasoil cracks in
As incremental
supply from the Middle East crackers started making its presence felt, demand
for naphtha reduced considerably thereby resulting in naphtha cracks turning
negative in Asia and
RIL’s Gross
Refining Margin (GRM) for half year was at US$ 7.7 / bbl as against US$ 6.3 /
bbl while RIL’s GRM for quarter was at US$ 7.9 / bbl as against US$ 6.0 / bbl
in the corresponding period of the previous year. RIL GRM premium over
EBIT for the
refining business was at Rs.42270.000 millions (US$ 941 million), an increase of 59.8% and
the EBIT margin increased marginally to 4.2% as compared to 4.1% in the
corresponding period of the previous year, due to higher refining margins
partly offset by higher depreciation on account of SEZ refinery. On trailing
quarter basis too, EBIT margins have improved to 4.4% as compared to 4.0%.
RIL has 695 retail outlets operational primarily in Western and Southern
states.
PETROCHEMICALS BUSINESS
|
(In Rs.
millions) |
2Q FY11 |
1Q FY11 |
2Q FY10 |
% Change wrt 2Q FY10 |
1H FY11 |
1H FY10 |
% Change wrt 1H FY10 |
|
Segment Revenue |
150960.000 |
139030.000 |
133400.000 |
13.2% |
289990.000 |
250470.000 |
15.8% |
|
Segment EBIT |
21970.000 |
20530.000 |
21950.000 |
0.1% |
42500.000 |
43040.000 |
(1.3%) |
|
EBIT Margin (%) |
14.6% |
14.8% |
16.5% |
|
14.7% |
17.2% |
|
|
Production
(Million Tonnes) |
5.4 |
4.9 |
5.4 |
|
10.3 |
10.3 |
|
During the half year ended 30th September 2010, revenue for the segment
increased by 15.8% from Rs.250470.000 millions to Rs.289990.000 millions (US$ 6.5
billion). Increase in volume accounted for 8.9% growth in revenue and higher
prices accounted for 6.9% growth in revenue.
EBIT margins for
the half year ended 30th September 2010 were at 14.7% as compared to 17.2% in
the corresponding period of the previous year on account of incremental PP
production from Jamnagar SEZ which witnessed significant margin reduction over
Propylene. On a trailing quarter basis, EBIT margins reduced due to negative
impact of margin reduction in PP-Propylene and most of the products in
polyester and ethylene chain which offset the positive impact of margin
improvement in PVC.
Due to cracker
shutdown at Hazira, Nagothane and Gandhar manufacturing sites, the production
of Ethylene decreased by 11% to 795 thousand tonnes while the production of
propylene decreased by 8% to 334 thousand tonnes as compared to the
corresponding period of the previous year. Polymer (PP, PE and PVC) production
increased by 5% to 2.0 million tonnes due to incremental PP production from
Jamnagar SEZ facility which was partly offset by lower PE production. Refinery
Propylene production increased by 29% to 973 thousand tonnes primarily due to
higher production from SEZ refinery.
During the period,
production of fibre intermediates (PX, PTA and MEG) decreased by 5% to 2.2
million tonnes primarily due to planned shutdown of one train in PX Jamnagar
and PX plant at Patalganga. Polyester (PFY, PSF and PET) production volumes
increased by 2% to 851 thousand tonnes. RIL has maintained its focus on specialty
products which accounted for 58% of PSF and 45% of PFY production.
Domestic demand for polyester products increased by 17% during the half
year on account of increased non-apparel applications like home furnishing and
technical textiles. Within polyester segment, demand for PET increased by 29%
due to increased beverages and bottled water demand during summer season.
Polymer products demand increased by 10% during the period. Within the polymer
segment, demand for PP increased by 18% due to strong growth in automobile
sector, cement packaging and other industrial applications.
ORGANIZED RETAIL
In the last
quarter, Reliance Retail continued to expand presence of its specialty formats,
as well as of its various joint ventures. Reliance Brands announced a joint
venture (Reliance – 49% share) with Ermenegildo Zegna Group, the world leader
in luxury menswear to develop the Zegna brand in
Reliance Brands
under its partnership with The Timberland Company opened its first Timberland
store in
TELECOM
RIL’s subsidiary,
Infotel Broadband Services Limited (Infotel), has emerged as a successful
bidder in all the 22 circles of the auction for Broadband Wireless Access (BWA)
Spectrum conducted by the DoT.
RIL sees the
broadband opportunity as a new frontier of knowledge economy in which it can
take a leadership position and provide
In August 2010,
Infotel has received the Letter of Allotment of Broadband Wireless Spectrum
(BWA) Spectrum from Department of Telecommunications, Government of India.
Infotel intends to setup a world class Broadband Wireless network using
the state-of-the-art technology. Infotel is in the process of finalizing the
arrangement with leading global technology players, service providers,
infrastructure providers, application developers, device manufacturers and
others to leapfrog
RELIANCE
INDUSTRIES MAKES GAS AND CONDENSATE DISCOVERY IN CAUVERY-PALAR REGION
Mumbai, 21st April
2011: Reliance Industries Limited (RIL) announced a rich gas and condensate
discovery in the very first well drilled in the block CY-PR-DWN-2001/3(CYPR-D6)
located in deepwater Cauvery - Palar basin. The Block with an area of about
8600 sq km was awarded to RIL under the bidding round of NELP-III. RIL
currently holds 100% participating interest in this block. This is one of the
23 exploration blocks where BP Exploration (Alpha) Limited would have a 30%
participating interest subject to the Government approval.
The discovery well
CYPR-D6-SA1 is located in a water depth of 1194m and was drilled to a target
depth of 3815m and terminated in crystalline basement. The well encountered
multiple hydrocarbon bearing clastic reservoirs in Late Cretaceous section. The
presence of rich Gas and condensate has been confirmed by several tests
including Modular Dynamic Testing (MDT) and Drill Stem Testing (DST). During
DST the well produced 37 million standard cubic feet of gas and 1100 barrels of
condensate per day through a 56/64” choke size from the main zone that has a
gross thickness of about 70m (230 ft). Another zone at a shallower level was established
through MDT sampling where gas and condensate sample was collected. This discovery
namely ’Dhirubhai-53’ has been notified to Government of India and Directorate General
of Hydrocarbons.
Further appraisal
activity is being planned to assess the extent of these reservoirs along this play
trend.
Reliance
Industries Limited
Subject is
RIL is the first
private sector company from
UNAUDITED FINANCIAL RESULTS
FOR QUARTER/ HALF YEAR ENDED 31.12.2010
(Rs. in millions,
except per share data)
|
Particulars |
Quarter Ended
31.12.2010 |
Half Year Ended 31.12.2010 |
|
2010 |
2010 |
|
|
1. Turnover |
623990.000 |
1833680.000 |
|
Less: Excise Duty I Service Tax Recovered |
26100.000 |
78720.000 |
|
2. Net Turnover |
597890.000 |
1754960.000 |
|
3. a) (Increase)! decrease in stock in trade / work in progress |
(5770.000) |
(25170.000) |
|
b) Consumption of raw materials |
455850.000 |
1349750.000 |
|
c) Purchases |
4330.000 |
12230.000 |
|
d) Staff cost |
6610.000 |
19380.000 |
|
e) Depreciation |
33590.000 |
102210.000 |
|
f) Other expenditure |
41420.000 |
115940.000 |
|
g) Total Expenditure |
536030.000 |
1574340.000 |
|
4. Profit from Operations before other income, interest and tax |
61860.000 |
180620.000 |
|
5. Other income |
7410.000 |
21350.000 |
|
6. Profit before interest and tax |
69270.000 |
201970.000 |
|
7. Interest and Finance Charges |
5490.000 |
16320.000 |
|
8. Profit before tax from ordinary activities |
63780.000 |
185650.000 |
|
9. Provision for Current Tax |
10420.000 |
30550.000 |
|
10. Provision for Deferred Tax |
2000.000 |
6000.000 |
|
11. Net Profit for the Period |
51360.000 |
149100.000 |
|
12. Paid up Equity Share Capital, Equity Shares of Rs.10/- each |
32730.000 |
32730.000 |
|
13. Reserves excluding revaluation on reserves |
|
|
|
14. Earnings per share (Face value of Rs.10) |
|
|
|
Basic |
15.70 |
45.60 |
|
Diluted |
15.70 |
45.60 |
|
15. Public shareholding [Excluding Equity Share Suspense and including
Global Depository Receipts (GDR’s)] |
1808.700 |
180870.000 |
|
- Number of Shares(in crore) |
55.27 |
55.27 |
|
- Percentage of Shareholding (%) |
|
|
|
16. Promoters and Promoter Group shareholding |
|
|
|
a) Pledged / Encumbered |
--- |
--- |
|
- Number of Shares (in crore) |
--- |
--- |
|
- Percentage of Total Promoters and Promoter Group Shareholding (%) |
--- |
--- |
|
- Percentage of Total Share Capital of Company (%) |
--- |
--- |
|
b) Non - Encumbered |
|
|
|
- Number of Shares (in crore) |
1463.900 |
1463.900 |
|
- Percentage of Total Promoters and Promoter Group Shareholding (%) |
100.00 |
100.00 |
|
- Percentage of Total Share Capital of Company (%) |
44.73 |
44.73 |
* - after considering effect of bonus
Notes:
1. The figures for the corresponding periods have been
restated, wherever necessary, to make them comparable.
2. The Company had revalued plant, equipment and buildings
situated at Patalganga, Hazira, Naroda,
3. Following companies have become subsidiaries during the
half year ended 30th September 2010 – Reliance Oil and Gas Mauritius Limited,
Reliance Exploration and Production Mauritius Limited, Reliance Holding
Cooperatief U.A., Reliance Holding Netherlands B.V., Reliance International Gas
B.V., Reliance Exploration and Production B.V., Reliance Exploration and
Production Limited, Reliance Holdings USA, Inc., Reliance Marcellus LLC,
Reliance Eagleford Midstream LLC, Reliance Eagleford Upstream LLC, Reliance
Eagleford Upstream GP LLC, Reliance Eagleford Upstream Holding LP, Indiawin
Sports Private Limited, Reliance Strategic (Mauritius) Limited, Mark Project
Services Private Limited, Reliance Energy Generation and Distribution Private
Limited, Reliance Marcellus II LLC, Reliance Industries Investment and Holding
Private Limited, Reliance Security Solutions Private Limited and Infotel
Broadband Services Limited (formerly Infotel Broadband Services Private
Limited).
4. There were no investors‟ complaints pending as on 1st
October 2010. All the 983 complaints received during the quarter ended 30th
September 2010 were resolved and no complaints were outstanding as on 31st
December, 2010.
5. The audit committee reviewed the above results. The Board
of Directors at its meeting held on 21st January, 2011 approved the
above results and its release. The statutory auditors of the Company have
carried out a Limited Review of the results for the half year ended 31st
December, 2010.
PRESS RELEASE:
Reliance
Industries makes Gas and Condensate Discovery in Cauvery-Palar Region
Mumbai, 21st April
2011: Reliance Industries Limited (RIL) announced a rich gas and condensate
discovery in the very first well drilled in the block CY-PR-DWN-2001/3(CYPR-D6)
located in deepwater Cauvery-Palar basin. The Block with an area of about 8600
sq km was awarded to RIL under the bidding round of NELP-III. RIL currently
holds 100% participating interest in this block. This is one of the 23 exploration
blocks where BP Exploration (Alpha) Limited would have a 30% participating
interest subject to the Government approval.
The discovery well CYPR-D6-SA1 is located in a water depth of 1194m and
was drilled to a target depth of 3815m and terminated in crystalline basement.
The well encountered multiple hydrocarbon bearing clastic reservoirs in Late
Cretaceous section. The presence of rich Gas and condensate has been confirmed
by several tests including Modular Dynamic Testing (MDT) and Drill Stem Testing
(DST). During DST the well produced 37 million standard cubic feet of gas and
1100 barrels of condensate per day through a 56/64” choke size from the main
zone that has a gross thickness of about 70m (230 ft). Another zone at a
shallower level was established through MDT sampling where gas and condensate
sample was collected. This discovery namely ’Dhirubhai-53’ has been notified to
Government of India and Directorate General of Hydrocarbons.
Further appraisal activity is being planned to assess the extent of
these reservoirs along this play trend.
Reliance
Industries Limited
Reliance Industries Limited (RIL) is India’s largest private sector
company on all major financial parameters with a turnover of Rs. 2004000.000
Millions (US$ 44.6 billion), cash profit of RS. 279330.000 Millions (US$ 6.2
billion), net profit of Rs. 162360.000 Millions (US$ 3.6 billion) and net worth
of RS. 1371710.000 Millions (US$ 30.6 billion) as of March 31, 2010.
RIL is the first private sector company from
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.73 |
|
|
1 |
Rs.73.21 |
|
Euro |
1 |
Rs.65.90 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
80 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.