MIRA
INFORM REPORT
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Report Date : |
28.09.2011 |
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) : |
31.03.2011 |
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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.32733.700 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: |
23365
(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 31.03.2011
|
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 30.06.2011
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
(A)
Shareholding of Promoter and Promoter Group |
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|
|
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|
21,172,026 |
0.67 |
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1,322,280,666 |
41.98 |
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120,471,003 |
3.82 |
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120,471,003 |
3.82 |
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1,463,923,695 |
46.48 |
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Total
shareholding of Promoter and Promoter Group (A) |
1,463,923,695 |
46.48 |
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(B)
Public Shareholding |
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|
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|
82,786,318 |
2.63 |
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7,087,550 |
0.23 |
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3,202,389 |
0.10 |
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|
259,767,596 |
8.25 |
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|
568,723,600 |
18.06 |
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921,567,453 |
29.26 |
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159,298,436 |
5.06 |
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375,782,239 |
11.93 |
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31,366,409 |
1.00 |
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197,968,540 |
6.28 |
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|
23,946,758 |
0.76 |
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2,138,158 |
0.07 |
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171,883,624 |
5.46 |
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764,415,624 |
24.27 |
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Total
Public shareholding (B) |
1,685,983,077 |
53.52 |
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Total
(A)+(B) |
3,149,906,772 |
100.00 |
|
(C) Shares
held by Custodians and against which Depository Receipts have been issued |
- |
- |
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|
- |
- |
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|
123,904,856 |
- |
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|
123,904,856 |
- |
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Total
(A)+(B)+(C) |
3,273,811,628 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
TrustsBUSINESS DETAILS
|
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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PRODUCTION STATUS (As on 31.03.2011):-
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
|
Refining of Crude
Oil |
|
N.A. |
60 |
|
Ethylene |
MT |
N.A. |
1883400 |
|
Propylene |
MT |
N.A. |
759800 |
|
Benzene |
MT |
N.A. |
730000 |
|
Toluene |
MT |
N.A. |
197000 |
|
Xylene |
MT |
N.A. |
165000 |
|
Hydro Cynic Acid ' |
MT |
3600 |
3600 |
|
Ethane Propane
Mix |
MT |
N.A. |
450000 |
|
Caustic Soda Lye
/ Flakes |
MT |
N.A. |
168000 |
|
Chlorine |
MT |
N.A. |
141200 |
|
Acrylonitrile |
MT |
N.A. |
41000 |
|
Linear Alkyl
Benzene |
MT |
N.A. |
182400 |
|
Butadiene and
Other C4s |
MT |
N.A. |
419000 |
|
Cyclohexane |
MT |
N.A. |
40000 |
|
Paraxylene |
MT |
N.A. |
1856000 |
|
Orthoxylene |
MT |
N.A. |
420000 |
|
Toluole |
MT |
N.A. |
180000 |
|
Poly Vinyl
Chloride |
MT |
N.A. |
625000 |
|
High / Linear
Low Density Poly Ethylene |
MT |
N.A. |
11175000 |
|
High Density
Polyethylene Pipes |
MT |
N.A. |
80000 |
|
Poly Butadiene
Rubber |
MT |
N.A. |
74000 |
|
Polypropylene |
MT |
N.A. |
2685200 |
|
Mono Ethylene
Glycol |
MT |
N.A. |
733400 |
|
Higher Ethylene
Glycol |
MT |
N.A. |
52080 |
|
Ethylene Oxide |
MT |
N.A. |
116000 |
|
Purified
Terephthalic Acid |
MT |
N.A. |
2050000 |
|
Polyester
Filament Yam / Polyester Chips |
MT |
N.A. |
822725+ |
|
Polyester Staple
Fibre / Acrylic Fibre / Chips |
MT |
N.A. |
741612 |
|
Poly Ethylene
Terephthalate |
MT |
N.A. |
290,000 |
|
Polyester Staple
Fibre Fill |
MT |
N.A. |
42,000 |
|
Man-made Fibre
Spun Yarn on worsted system |
Nos |
N.A. |
24,094 |
|
Man-made fibre
on cotton system (Spindles) |
Nos |
N.A. |
23,040 |
|
Man-made Fabrics
(Looms) |
Nos |
N.A. |
263 |
|
Knitting M/C |
Nos |
22 |
20 |
|
Solar
photovoltaic modules |
M.W |
N.A. |
30 |
PRODUCTION MEANT FOR SALE (As on 31.03.2011):-
|
Products |
Unit |
2010-11 |
|
Crude Oil |
MT |
1306057 |
|
Gas |
BBTU |
564312 |
|
Petroleum Products |
‘000 MT |
51525 |
|
Ethylene |
MT |
27 |
|
Propylene |
MT |
6895 |
|
Benzene |
MT |
605200 |
|
Toluene |
MT |
102036 |
|
Caustic Soda lye / Flakes |
MT |
128631 |
|
Acrylonitrile |
MT |
37608 |
|
Linear Alkyl Benzene |
MT |
162667 |
|
Butadiene |
MT |
96158 |
|
Cyclohexane |
MT |
46195 |
|
Paraxylene |
MT |
486896 |
|
Orthoxylene |
MT |
399831 |
|
Poly Vinyl Chloride |
MT |
630780 |
|
Polyethylene |
MT |
970017 |
|
High Density Polyethylene Pipes
|
Mtrs. In lacs |
93 |
|
Poly Butadiene Rubber |
MT |
75261 |
|
Polypropylene |
MT |
2496099 |
|
Ethylene Glycol |
MT |
265244 |
|
Purified Terephthalic Acid |
MT |
622097 |
|
Polyester Filament Yarn |
MT |
810433 |
|
Polyester Staple Fibre |
MT |
631023 |
|
Poly Ethylene Terephthalate |
MT |
352668 |
|
Polyester Staple Fibre Fill |
MT |
69614 |
|
Fabrics |
Mtrs. in Lacs |
180 |
GENERAL INFORMATION
|
No. of
Employees : |
23365 (Approximately) |
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Bankers : |
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Facilities : |
1. Debentures referred to in A above to the extent of: a)
Rs. 2,2830.000 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. 5,0000.000 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. 1,9700.000 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.1103.400 millions are secured by way of first mortgage / charge on certain
properties situated at village Mouje Dhanot, District Kalol in the State of Gujarat
and on fixed assets situated at Hoshiarpur Complex of the Company. e)
Rs. 494.300 millions are secured by
way of first mortgage / charge on certain properties situated at Ahmadabad in
the State of Gujarat and on fixed assets situated at Nagpur Complex of the
Company. f)
Rs. 440.500 millions are secured by way of first mortgage / charge on certain
properties situated at Surat in the State of Gujarat and on fixed assets
situated at Allahabad Complex of the Company. g)
Rs. 510.000 millions are secured by way of first mortgage / charge on movable
and immovable properties situated at Thane in the State of Maharashtra and on
movable properties situated at Baulpur Complex of the Company. h)
Rs. 5000.000 millions are secured by way of first mortgage / charge on the
immovable properties situated at Jamnagar Complex (SEZ unit) of the Company. 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 17th
June, 2011 and the last being on 7th May, 2020. The debentures are redeemable
as follows: Rs. 6550.000 millions in financial year 2011-12, Rs. 3,0436.900
millions in financial year 2012-13, Rs. 4,4662.600 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, Rs. 5033.400
millions in financial year 2018-19 and Rs. 5000.000 millions in financial
year 2020-21. 3.
Working capital loans are secured by hypothecation of present and future
stock of raw materials, stock-in-process, finished goods, stores and spares
(not relating to plant and machinery), book debts, outstanding monies,
receivables, claims, bills, materials in transit, etc. save and except
receivables of Oil and Gas Division.
Note: Short term loan from banks include commercial
paper of Rs. NIL (Previous Year Rs. 5000.000 millions). Maximum balance
outstanding at any time during the year being Rs. 4,8250.000 millions
(Previous Year Rs. 8,5000.000 millions). |
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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 : |
(amalgamated with Reliance
Corporate IT Park Limited w.e.f. 01.04.2010)
(amalgamated with Reliance
Corporate IT Park Limited w.e.f. 01.04.2010)
|
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|
|
|
Enterprises
Over Which Key Manegerial Personnel are able to exercise Significantly
influence : |
|
CAPITAL STRUCTURE
As on 31.03.2011
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 |
|
|
|
|
|
|
3273374008 |
Equity Shares |
Rs.10/-each |
Rs.32733.700 Millions |
|
|
|
|
|
Note:
1. 210,85,63,630 Shares out of the issued and subscribed share
capital were allotted as Bonus Shares by (210,85,63,630) capitalization of
Securities Premium and Reserves.
2. 65,25,91,982 Shares out of the issued and subscribed
share capital were allotted pursuant to the various (65,25,91,982) Schemes of
amalgamation without payments being received in cash and includes 10,46,60,154
shares allotted to Petroleum Trust.
3. 45,04,27,345 Shares out of the issued and subscribed
share capital were allotted on conversion / surrender (45,04,27,345) of
Debentures and Bonds, conversion of Term Loans, exercise of warrants, against
Global Depository Shares (GDS) and re-issue of forfeited equity shares.
4. The Company has reserved issuance of 13,52,79,244
(Previous year 13,82,78,892) 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 35,200 [Previous
year NIL] Options to the eligible employees which includes 16,000 options at a
price of Rs. 995/- per option and 19,200 options at a price of Rs. 929/- per
option plus all applicable taxes, as may be levied in this regard on the
Company. The options would vest over a maximum period of 7 years or such other
period as may be decided by the Employees Stock Compensation Committee from the
date of grant based on specified criteria.
During the year, the Company has issued and allotted
29,99,648 (Previous Year 5,30,426) equity shares to the eligible employees of
the Company and its Subsidiaries under ESOS.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
32733.700 |
32703.700 |
15735.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1482669.500 |
1339002.400 |
1247301.900 |
|
|
4] Equity Share Warrants |
0.000 |
0.000 |
692.500 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
1515403.200 |
1371706.100 |
1263729.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
105712.100 |
116705.000 |
106979.200 |
|
|
2] Unsecured Loans |
568254.700 |
508241.900 |
632065.600 |
|
|
TOTAL
BORROWING |
673966.800 |
624946.900 |
739044.800 |
|
|
DEFERRED TAX LIABILITY |
115618.000 |
109263.000 |
97263.000 |
|
|
|
|
|
|
|
TOTAL
|
2304988.000 |
2105916.000 |
2100037.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1427064.700 |
1532598.900 |
1003430.600 |
|
|
Capital work-in-progress |
128195.600 |
121388.200 |
690438.300 |
|
|
|
|
|
|
|
|
INVESTMENTS |
376515.400 |
232286.200 |
216064.900 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
Inventories |
298253.800 |
269816.200 |
148367.200 |
|
|
Sundry Debtors |
174419.400 |
116602.100 |
45713.800 |
|
|
Cash & Bank Balances |
271348.600 |
134626.500 |
221765.300 |
|
|
Other Current Assets |
1993.200 |
914.000 |
478.600 |
|
|
Loans & Advances |
169403.300 |
101832.200 |
130797.800 |
|
|
Total Current Assets |
915418.300 |
623791.000 |
547122.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
488461.200 |
360556.000 |
315790.900 |
|
|
Other Current Liabilities |
8110.000 |
7938.000 |
11119.100 |
|
|
Provisions |
45634.800 |
35654.300 |
30109.000 |
Total Current Liabilities
|
542206.000 |
404148.300 |
357019.000 |
|
|
Net Current Assets |
373212.300 |
219642.700 |
190103.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
2304988.000 |
2105916.000 |
2100037.500 |
|
PROFIT &
LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2481700.000 |
1924610.200 |
1418474.700 |
|
|
|
Other Income |
30517.100 |
24604.700 |
20598.800 |
|
|
|
TOTAL (A) |
2512217.100 |
1949214.900 |
1439073.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases |
14643.100 |
29958.200 |
22052.700 |
|
|
|
Manufacturing
and Other Expenses |
2118230.100 |
1628323.800 |
1167558.900 |
|
|
|
Increased / Decreased in Stocks |
(32430.500) |
(39478.900) |
(4275.600) |
|
|
|
TOTAL (B) |
2100442.700 |
1618803.100 |
1185336.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
411774.400 |
330411.800 |
253747.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
23276.200 |
19972.100 |
17452.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
388498.200 |
310439.700 |
236285.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
136075.800 |
104965.300 |
51952.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
252422.400 |
205474.400 |
184332.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
49559.400 |
43117.700 |
31239.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
202863.000 |
162356.700 |
153093.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
49994.500 |
53841.900 |
43632.900 |
|
|
|
Amount Available for Appropriations |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
160000.000 |
140000.000 |
117289.200 |
|
|
|
Debenture Redemption Reserve |
0.000 |
1895.000 |
3400.500 |
|
|
|
Interim Dividend on Equity Shares |
0.000 |
0.000 |
18970.500 |
|
|
|
Proposed Dividend on Equity Shares |
23849.900 |
20846.700 |
0.000 |
|
|
|
Tax on Dividend |
3869.000 |
3462.400 |
3224.000 |
|
|
BALANCE CARRIED
TO THE B/S |
65138.600 |
49994.500 |
53841.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value for Exports |
1405461.500 |
1026556.000 |
868275.200 |
|
|
|
Interest Earnings |
69.800 |
250.800 |
700.100 |
|
|
|
Other Earnings |
44.800 |
203.200 |
192.500 |
|
|
TOTAL EARNINGS |
1405576.100 |
1027010.000 |
869167.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1749143.900 |
1520830.500 |
1020729.300 |
|
|
|
Stores & Spares |
20505.000 |
14306.300 |
14078.000 |
|
|
|
Capital Goods |
5018.300 |
11902.200 |
65926.900 |
|
|
TOTAL IMPORTS |
1774667.200 |
1547039.000 |
1100734.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
62.00 |
49.65 |
48.63 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 1st
Quarter |
|
Type |
|
|
|
|
Net Sales |
|
|
810180.000 |
|
Total Expenditure |
|
|
710920.000 |
|
PBIDT (Excl OI) |
|
|
99260.000 |
|
Other Income |
|
|
10780.000 |
|
Operating Profit |
|
|
110040.000 |
|
Interest |
|
|
5450.000 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
104590.000 |
|
Depreciation |
|
|
31950.000 |
|
Profit Before Tax |
|
|
72640.000 |
|
Tax |
|
|
16030.000 |
|
Provisions and Contingencies |
|
|
56610.000 |
|
Profit After Tax |
|
|
0.000 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
56610.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.07 |
8.33 |
10.64 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.17 |
10.68 |
12.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
107.75 |
9.53 |
11.89 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.15 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.80 |
0.75 |
0.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.68 |
1.54 |
1.53 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is an India-based company. The company is
OVERVIEW
Value creation
through operating excellence and new Initiatives
In line with its aspirations of ongoing growth, Reliance is investing
its resources in core businesses across the integrated energy chain. It is also
taking an initiative of investing in new technologies and businesses that help
meet changing aspirations of millions of Indian consumers. These strategies and
initiatives are aimed to ensure that Reliance delivers long-term growth and
creates unprecedented value for its stakeholders.
Reliance Industries Limited (RIL) has an integrated business model that
combines a long-term perspective, with focus on operational excellence and
disciplined approach towards capital investment to deliver shareholder value.
The Company has identified, developed and executed projects while applying best
practices that ensure superior project returns across a range of scenarios. It
has regularly generated higher income from its productive capital base, as
demonstrated by superior returns on average capital employed. It has delivered
industry-leading financial and operating results that multiply long-term
shareholder value. RIL’s proven and tested business model, and superior cash
flow served its shareholders well in the Financial Year 2010 – 2011 (FY-11).
FY-11 was a strong year for its upstream oil and gas business. RIL
completed two years of operations of its KG-D6 production facility. It not only
delivered new supplies of crude oil and natural gas to the nation, but also
provided significant value for the Company and its shareholders. Production
from KG-D6 for FY-11 was 7.95 million barrels (MMBL) of crude oil, and 720 billion
cubic feet (BCF) of natural gas - a growth of 97.6% and 41.7% respectively.
In FY-11, Reliance entered into four Joint Ventures (JV) in the United
States of America. These JVs, over a period, will enhance Reliance’s position
in development of unconventional natural gas and oil resources and develop new
competencies in operating new businesses. The Company is confident that the
combination of its complementary strengths will open new opportunities to meet
the growing global energy demand and raise value for its shareholders.
In the downstream and chemical business, RIL maintained a long-term
strategic approach during the recent economic downturn. The Company maintained
operating rates upwards of 100% in the refining and petrochemicals business. It
processed 66.6 million metric tonnes (MMT) of crude, the highest ever, at its
Jamnagar refinery complex. For the sixth consecutive year, RIL has been
featured in the Fortune Global 500 list of the world’s largest corporations.
Its current rankings are as follows:
·
175 based on revenues
·
100 based on profits
RIL - BP alliance
During the year, RIL and BP announced a strategic partnership in the oil
and gas business. This partnership comprises BP taking 30 per cent stake in 23 oil
and gas production sharing contracts that Reliance operates in India, including
the KG-D6 block, and the formation of a joint venture (50:50) for sourcing and
marketing gas in India. The partnership will also endeavour to accelerate the
creation of infrastructure for receiving, transporting and marketing natural
gas in India. The partnership will combine BP’s world-class deep-water
exploration and development capabilities with Reliance’s project management and
operations expertise.
BP will pay RIL an aggregate consideration of $ 7.2 billion, and
completion adjustments, for the interests to be acquired in the 23 production
sharing contracts in India. Future performance payments of upto $ 1.8 billion
could be paid based on exploration success that results in the development of
commercial discoveries.
Completion of the transaction is subject to Indian regulatory approvals
and other customary conditions. RIL has applied to local regulatory authorities
and the Government of India for necessary approvals for this partnership.
Shale gas joint
ventures
The growing importance of U.S. shale gas resources is reflected in USA’s
Department of Energy’s EIA Annual Energy Outlook 2011 energy projections, with
technically recoverable U.S. shale gas resources now estimated at 862 TCF.
Given a total natural gas resource base of 2,543 trillion cubic feet (TCF),
shale gas resources constitute 34% of the domestic natural gas resource base
and 50% of 48 onshore resources in the US. As a result, shale gas is the
largest contributor to the projected growth in production, and by 2035, shale
gas production is expected to account for 46% of U.S. natural gas production as
per the report.
During the year, the Company took a significant step by entering into
partnerships in the United States of America with Atlas Energy, Pioneer Natural
Resources and Carrizo Oil & Gas through three distinctive joint venture
agreements. It has also entered into a separate joint venture with Pioneer
Natural Resources aimed at addressing the mid-stream opportunity in gas
evacuation and transportation. RIL, through its subsidiary, Reliance Marcellus
LLC, has entered into a joint venture with the USA based Atlas Energy, Inc.,
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).
RIL, through its subsidiary, Reliance Eagleford Upstream Holding LP, has
entered into a joint venture with the USA based Pioneer Natural Resources
Company, 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 nearly 10 TCFe (4.5 TCFe net to Reliance).
RIL, through its subsidiary, Reliance Marcellus II LLC, has entered into
a joint venture with the USA based Carrizo Oil & Gas Inc., under which
Reliance acquired 60% interest in Marcellus Shale acreage in central and
northeast Pennsylvania. The acreage will support the drilling of approximately
1,000 wells with a net resource potential of nearly 3.4 TCFe (2.0 TCFe net to
Reliance).
Joint venture for
Butyl Rubber production in India
During the year, RIL and Russia’s SIBUR announced a joint venture for
the setting up of a facility for producing 100,000 tonnes of butyl rubber in
India. This is a significant step towards Reliance’s commitment to service
India’s growing automotive sector by bringing in complex technologies, available with only a very few
companies globally. The setting up of domestic manufacturing of butyl rubber
will fulfill a longstanding demand of the Indian tyre and rubber industry.
Spearheading the
knowledge revolution
During the year, RIL acquired a 95% stake in Infotel Broadband Services
Limited, which emerged as a successful bidder in all the 22 circles of the
auction for Broadband Wireless Access (BWA) spectrum conducted by the Department
of Telecommunication, Government of India. RIL has invested Rs. 4,201.64
millions by way of subscription to
equity capital issued by Infotel Broadband.
RIL sees the broadband opportunity as a new frontier of knowledge economy
in which it is confident of taking leadership position and providing India with
an opportunity to be in the forefront among the countries providing world-class
4G network and services.
Continuing success
in exploration and production
This was yet another successful period for RIL’s oil and gas exploration
and production business. The Company made five oil discoveries in the on-land
exploratory block CB–ONN–2003/1 (CB-10 A&B) in the Cambay basin, awarded
under the NELP-V round of exploration bidding. These discoveries are
significant as this play fairway is expected to open more oil pool areas,
leading to better hydrocarbon potential within the block. The block covers an
area of 635 sq. km. in two parts, viz. Part A & Part B. RIL holds 100% participating
interest (PI) in the block
The Company also made a gas discovery in the exploration block
KG-DWN-2003/1 (KG-V-D3) of NELP-V. The deepwater block KG-DWN-2003/1 is located
in the Krishna basin, about 45 km. off the coast in the Bay of Bengal. The block
covers an area of 3,288 sq. km. in which RIL holds a 90% PI. During the period,
the following six discoveries were notified to the Directorate General of
Hydrocarbons
(DGH), Government of India:
·
Dhirubhai-47 in Well AF1 in CB-10 block
·
Dhirubhai-48 in Well AJ1 in CB-10 block
·
Dhirubhai-49 in Well AT1 in CB-10 block
·
Dhirubhai-50 in Well AN1 in CB-10 block
·
Dhirubhai-51 in Well AR1 in CB-10 block
·
Dhirubhai-52 in Well W1 in KG-V-D3 block
Supreme Court
judgement in RNRL-RIL dispute
The Honourable Supreme Court of India has delivered its judgment in the
Reliance Natural Resources Limited (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 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. During the year, RIL and Reliance ADA
Group companies approved and signed an agreement cancelling all existing
non-compete arrangements entered between the two groups in January2006,
pursuant to the scheme of reorganization of the Reliance Group and entered a
new simpler, non-compete agreement with respect to only gas-based power
generation.
Financial
performance
The net profit for the year was at Rs. 20,286 millions ($ 4,549 million) with a Compounded Annual
Growth Rate (CAGR) of 23% over the past 10 years. RIL has announced a dividend
of 80% amounting to Rs. 2,772 millions
($ 622 million), including dividend distribution tax. This is one of the
highest payouts by any private sector company in India.
RIL continues to play a pivotal role in the growth of India’s economy
and endeavours to contribute to the nation’s progress. It accounts for:
·
13.4% of exports
·
6.9% of the indirect tax revenues
·
4.8% of the market capitalisation
·
Weightage of 11.9% in the BSE Sensex
·
Weightage of 10.1% in the NSE Nifty
FINANCIAL REVIEW
RIL delivered superior financial performance with improvements across
key parameters. The turnover achieved for the year ended March 31, 2011 was Rs.
2,58,6510.000 millions ($ 58.0
billion), a growth of 29% over the previous year. The increase in revenue was
due to 11% rise in volumes and 18% rise in prices. During the year, exports
including deemed exports, were higher by 33% at Rs. 1,46,6670.000 millions ($ 32.9 billion).
The consumption of raw materials increased by 31% from Rs. 1,47,9190.000
millions to Rs. 1,93,2340.000
millions ($ 43.3 billion). This was
mainly on account of higher crude oil processed in the SEZ refinery. Traded
goods purchases were Rs. 1,4640.000 millions
($ 328 million) as compared to Rs. 2,9960.000 millions in the previous year.
The staff cost was Rs. 2,6240.000 millions ($ 588 million) for the year as against Rs.
2,3500.000 millions in the previous
year.
The operating profit before other income increased by 25% from Rs.
30,5810.000 millions to Rs. 38,1260.000
millions ($ 8.5 billion). The net
operating margin for the period was 15.4 % as compared to 15.9% in the previous
year.
Other income was higher at Rs. 3,0520.000 millions ($ 684 million) against Rs. 2,4600.000
millions , primarily due to higher average cash balances.
EBITDA increased by 25% from Rs. 33,0410.000 millions to Rs. 41,1780.000 millions ($ 9.2 billion).
Interest cost was higher at Rs. 2,3280.000 millions ($ 522 million) as against Rs. 1,9970.000
millions . The gross interest cost was lower at Rs. 2,8020.000 millions ($ 628 million) as against Rs. 2,9810.000
millions for the previous year on
account of lower interest rates. The interest capitalised was lower at Rs. 4740.000
millions ($ 1060.000 million) as against
Rs. 9840.000 millions in the previous
year due to commissioning of projects
Depreciation (including depletion and amortisation) was higher at Rs.
13,6080.000 millions ($ 3.1 billion),
against Rs. 10,4970.000 millions in the
previous year, primarily on account of higher depletion charges in oil and gas
and incremental depreciation due to the SEZ refinery.
Profit after tax was Rs. 20,2860.000 millions ($ 4.5 billion) as against Rs. 16,2360.000
millions for the previous year, an
increase of 25%.
The earning per share (EPS) for the year was Rs. 62.0 ($ 1.4).
Net gearing at 13.5%, net debt to equity of 0.17, return on capital
employed at 13.2% and return on equityat 15.5% are measures of RIL’s strong
financial position at the end of the year.
During the year, the Company has issued and allotted 29,99,648 equity
shares to the eligible staff of the Company and its subsidiaries under
Employees Stock Option Scheme. As a result, the Company’s equity share capital
stands at Rs. 3,2730.000 millions .
The net capital expenditure for the year ended March 31, 2011 was Rs.
6,0680.000 millions ($ 1.4 billion).
During the year, a total of Rs. 28,7190.000 millions ($ 6.4 billion) was paid in the form of taxes
and duties.
RIL maintained its status as India’s largest exporter. The exports,
including deemed exports, were at Rs. 1,46,6670.000 millions ($ 32.9 billion) as against Rs. 1,10,1760.000
millions in the previous year. RIL
exported to 122 countries around the world. The exports represent 57% of RIL’s
turnover. Petroleum products constitute 88% while the balance is contributed by
petrochemicals.
BUSINESS REVIEW
OIL AND GAS
EXPLORATION AND PRODUCTION
Energy markets have improved significantly over the past 12-15 months as
a result of improved economic growth, higher demand for refined products and
limited supplies of crude oil. In 2010, global oil demand grew by 3.4% (or 2.9
MMBD) to 87.9 MMBD, which is the highest growth in the last 30 years. Emerging
Asia which comprises India and China, accounted for 40% of the oil demand
increase. Global LNG markets also grew by 13% and are currently at 275 million
tonnes per annum (MMTPA).
Crude prices increased 25% during the year wherein Brent oil prices
averaged $86.7/bbl vis-à-vis $69.5/bbl in FY-10. In FY-11, the US benchmark
Henry Hub gas prices averaged $4.13/MMBTU vis-à-vis $3.98/MMBTU in FY-10.
Prices remained range-bound in the US due to excess drilling and lack of export
infrastructure. However, Asian LNG prices remained linked to crude oil and spot
prices in recent months touched $10-12/MMBTU.
It is expected that global energy consumption growth will average at
around 1.7% per annum over the next two decades. Of this, non-OECD energy
consumption is expected to be 68% higher by 2030, averaging 2.6% p.a. growth,
and accounting for 93% of global energy growth. OECD energy consumption in 2030
is expected to be around 6% higher than today, with growth averaging at a
measly 0.3% p.a. over the next two decades.
The fuel mix is changing relatively slowly, due to long asset lifetime,
but gas and non-fossil fuels are gaining share at the expense of coal and crude
oil. The fastest growing fuels are renewables (including biofuels) which are
expected to grow at 8.2% p.a. 2010-30; among fossil fuels, gas grows the
fastest (2.1% p.a.).
Non-OECD countries are likely to account for 80% of the global rise in
gas consumption, with growth averaging at around 3% p.a. Demand growth is
expected to be the fastest in non-OECD Asia (4.6% p.a.) and the Middle East
(3.9% p.a.). It is expected that over the next two decades, China could consume
about 43 BCF per day, which is comparable to that of the 47 BCF per day that EU
currently consumes. The growth is expected to remain modest in OECD markets (1%
p.a.), particularly in North America.
Oil continues to suffer a long run decline in market share, while gas is
steadily gaining. Natural gas is projected to be the fastest growing fossil
fuel globally. Production is expected to grow in every region except Europe,
with Asia accounting for the world’s largest production and consumption
increments.
The IEA estimates that global upstream capital spending, which had
fallen by 15% in 2009, has rebound in 2010 and is pegged at $ 470 billion.
Global offshore capital expenditure is estimated at $ 150 billion and nearly $
874 billion is expected to be spent over the next five years. A substantial
portion of this investment will flow into deepwater. Deep-water capital
expenditure is pegged at nearly $ 50 billion and deep-water production is set
to double in the next five years. Currently, there are very few fields with
water depths of more than 2,000 meters under development. Many of the recent
discoveries have been in those water depths. The capital expenditure sanctioned
in this water depth is likely to double by 2012.
The role of unconventional oil is also expected to increase
significantly and will touch 10% of world oil demand by 2035.
India continues to remain amongst the fastest growing economies of the
world with a projected growth of 8-9%. Consequently, India’s energy needs are
expected to treble by 2035 from 468 million tonnes of oil equivalent (MTOE) to
nearly 1405 MTOE. India can fulfill its agenda for climate change as natural
gas used to generate power has half the CO2 emissions of conventional coal
power generation and near-zero sulphur emissions.
Indian gas market
In India, gas constitutes around 10% of the current energy basket
compared to the global average of 24% and hence presents a vast potential for growth.
The demand for natural gas in India is expected to grow at a CAGR of 10% over
the next five years and could soon be a significant player in the global gas
market.
RIL – BP
partnership
On February 21, 2011, RIL and BP announced a strategic partnership
between the two companies and signed the relationship framework and
transactional agreements. The partnership across the full value chain comprises
BP taking a 30% stake in 23 oil and gas production sharing contracts that
Reliance operates in India, including the producing KG-D6 block. The
partnership will aim to combine BP’s deep-water exploration and development
capabilities with Reliance’s project management and operations expertise. The
two companies will also form a joint venture (50:50) for the sourcing and
marketing of gas in India and bid together for incremental opportunities in the
deep-water blocks in the east coast of India.
BP will pay RIL an aggregate consideration of $ 7.2 billion, and
completion adjustments, for the interests to be acquired in the 23
production-sharing contracts. Future performance payments of upto $ 1.8 billion
could be paid based on exploration success that results in development of
commercial discoveries. RIL will continue to be theoperator under the
production-sharing contracts. Completion of the transactions is subject to
regulator and the Government of India approvals.
RIL gas marketing
KG-D6 was the single largest source of domestic gas in the country for
FY-11 and accounted for almost 35% of the total gas consumption in India. The
gas from KG-D6 catered to demand from 57 customers in critical sectors like
fertilizer, power, steel, petrochemicals and refineries. The gas from KG-D6
accounted for about 44% of the total domestic gas production paving the way for
increased energy independence for the country.
RIL’s E and P
business:
KG-D6 KG-D6 gas fields completed 730 days of 100% uptime and
zero-incident production. An average daily gas production from KG-D6 block for
the year was 55.9 MMSCMD with a cumulative production of 1,257 BCF since
inception, of which 720 BCF was produced in the current fiscal. An average oil
production for the year from the block was 21,971 barrels per day with a
cumulative production of 14 MMBL of oil and condensate since inception, of
which 8 MMBL of oil and 1 MMBL of condensate was produced in the current
fiscal.
In the D1-D3 gas fields a total of 20 wells have been drilled, of which
18 are production wells. Of these, 2 wells have been drilled this fiscal.
6 wells in the D26 field are under production. Of these, MA-2 which was
earlier a gas injection well has been converted to a production well since
April 2010.
An integrated development plan for all gas discoveries in KG-D6 is being
conceptualized. This will encompass existing wells and other discoveries within
the block to maximize capital efficiency and to accelerate monetization.
International
business
During the year, Reliance entered into one of the fastest growing
opportunities emerging in the U.S. unconventional gas business through three
upstream joint ventures. These joint ventures will materially increase
Reliance’s resources base and provide Reliance with an entirely new platform to
grow its exploration and production business while simultaneously enhancing its
ability to operate unconventional resource projects in the future.
RIL – Chevron
RIL, through its subsidiary, Reliance Marcellus LLC, entered into a
joint venture with Atlas Energy, Inc. (now owned by Chevron Corporation) under which
Reliance acquired a 40% interest in Atlas’ core Marcellus shale acreage
position. The acquisition cost of participating interest in the JV consisting
of $ 339 million of upfront payment and an additional payment of $ 1.36 billion
under a carry arrangement for 75% of Atlas’s capital costs over an anticipated
seven and a half year development programme. Reliance becomes a partner in
approximately 300,000 net acres of undeveloped leasehold in the core area of
the Marcellus shale in southwestern Pennsylvania. 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)
While Atlas will serve as the development operator for the joint
venture, Reliance is expected to begin acting as development operator in
certain regions in coming years as part of the joint venture. Under the
framework of the joint venture, Atlas will continue acquiring leasehold in the
Marcellus shale region and Reliance will have the option to acquire 40% share
in all new acreage. Reliance also obtains the right of first offer with respect
to potential future sales by Atlas of around 280,000 additional Appalachian
acres currently controlled by Atlas.
RIL – Pioneer
RIL, through its subsidiary, Reliance Eagleford Upstream LP, entered
into a joint venture with Pioneer Natural Resources Company under which
Reliance acquired a 45% in two separate transactions. Pioneer and Newpek LLC,
Pioneer’s existing partner in Eagle Ford, simultaneously conveyed 45% of their respective
interests in the Eagle Ford to Reliance. Newpek owned an approximate 16%
nonoperated interest in Pioneer’s core Eagle Ford shale acreage. Following the
transaction, Pioneer, Reliance and Newpek own 46%, 45% and 9% of the joint
venture interests, respectively.
The joint venture has an approximate net working interest of 91% in
289,000 gross acres implying 263,000 net acres. Reliance paid $ 1.315 billion
for its implied share of 118,000 net acres. This upstream transaction
consideration included combined upfront cash payments of $ 263 million and
additional $ 1.052 billion capital costs under a carry arrangement for 75% of
Pioneer’s and Newpek’s capital costs over an anticipated four years. The joint
venture’s leasehold, which is largely undeveloped, is located in the core area
of the Eagle Ford shale in south Texas. Low operating costs, significant
liquids content (70% of the acreage lies within the condensate window) and
excellent access to services in the region combine to make the Eagle Ford one
of the most economically attractive unconventional resources in North America.
Pioneer believes 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).
The joint venture plans to increase the current drilling programme to
approximately 140 wells per year within three years. Also included in the
transaction is current production of 28 MMCFe/d (11 MMCFe/d net to Reliance)
from five currently active horizontal wells. While Pioneer will serve as the
development operator for the upstream joint venture, Reliance is expected to
begin acting as development operator in certain areas in coming years as part
of the joint venture. Under the framework of the joint venture, Pioneer will
continue acquiring leasehold in the Eagle Ford Shale and Reliance will have the
option to acquire a 45% share in all newly acquired acres.
Additionally, Reliance and Pioneer formed a midstream joint venture that
will service the gathering needs of the upstream joint venture. Reliance’s
subsidiary, Reliance Eagleford Midstream LLC, paid $ 46 million to acquire a
49.9% membership interest in the joint venture. Pioneer and Reliance will have
equal governing rights in the joint venture and Pioneer will serve as operator.
RIL – Carrizo
RIL, through its subsidiary, Reliance Marcellus II, LLC, entered into a
joint venture with Carrizo Oil & Gas, Inc.
Under the transaction, Reliance acquired a 60% interest in Marcellus
shale acreage in Central and Northeast Pennsylvania that was held in a 50:50
joint venture between Carrizo and ACP II Marcellus LLC, an affiliate of Avista
Capital Partners. Pursuant to the transaction, Reliance acquired 100% of
Avista’s interest and 20% of Carrizo’s interests in the joint venture. Reliance
and Carrizo own 60% and 40% interests, respectively, in a newly formed joint
venture between the companies. Reliance agreed to a total consideration of $
392 million, comprising $ 340 million of initial payment and $ 52 million of
drilling carry obligations. The drilling carry obligations will provide for 75%
of Carrizo’s share of development costs over an anticipated two year
development programme.
The joint venture will have approximately 104,400 net acres of
undeveloped leasehold in the core area of the Marcellus shale in central and
northeast Pennsylvania, of which Reliance’s 60% interest will represent
approximately 62,600 net acres. This acreage is expected to support the
drilling of approximately 1,000 wells over the next 10 years, with a net
resource potential of about 3.4 TCFe (2.0 TCFe net to Reliance).
PERFORMANCE REVIEW
RIL processed 66.6 million tonnes of crude and achieved an average
utilization of 107%, which is significantly higher than the average utilization
rates for refineries globally. Exports of refined products were at $29.3
billion. This accounted for 38.6 million tonnes of product as compared to 32.8
million tonnes the previous year.
GAPCO
Reliance has consolidated operations of its GAPCO subsidiaries in East
Africa. GAPCO group owns and operates large storage facilities and also has a
well-spread retail distribution network. It owns and operates large coastal
storage terminals in Dar-e-Salaam (Tanzania), Mombasa (Kenya) and an inland
terminal at Kampala (Uganda) and has well-spread depots in East Africa. GAPCO
achieved a turnover of $ 1.1 billion for 2010 (January-December) which was
36.2% higher as compared to the previous year. GAPCO’s EBITDA for 2010 was $
29.7 million, an increase of 26.9% on a year-on-year basis while profit before
tax increased by 24.5% to $ 19.3 million. It sold 1.6 million kilo litres of
petroleum products during 2010, which was 23.6% higher over the previous year.
STRATEGY AND
OUTLOOK
Reliance is best positioned to capture top decile margins as a result of
processing cheaper, heavier crudes and benefitting from low operating costs.
Built in the last decade, the RIL refineries are state-of-the-art and among the
most complex refineries in the world. Strategically located on the west coast
of India, it benefits from low transportation costs for its feedstock and also
from its proximity to the high-growth markets of Asia. From a product slate
perspective, the refineries have been designed to produce higher quantities of
middle distillate products like diesel and jet-kero and also ultra-clean fuels
that provide it the potential for higher refining margins.
PETROCHEMICALS
ETHYLENE SCENARIO
Ethylene is the primary building block and a major feedstock for
polymers. It is a raw material used in the manufacture of polymers like
polyethylene, polyvinyl chloride and polystyrene, as well as organic chemicals
like ethylene oxide and ethylene glycols. These products are used in a variety
of end markets, such as packaging, transportation, electronic, textile and
construction.
Global ethylene markets continue to recover from a state of oversupply
that developed in 2008-2010, stemming mainly from the construction of new
capacity in the Middle East and Asia and recessionary global conditions. Global
ethylene production totalled 122 MMT in 2010, representing an operating rate of
84.9% as compared to 84% in 2009.
World Ethylene
Supplu/Demad/2010
Capacity additions in the Middle East and the Asian continent during the
recent past have dramatically changed the supply scenario. The Middle East now
accounts for 18% of global ethylene capacity as compared to 10% in 2005.
Similarly, Asia now contributes to 33% of the global ethylene capacity as
compared to 29% in 2005. With the capacity that has become operational in the
Middle East, the feedstock mix for cracker has also changed in favour of gas.
RIL performance
Reliance maintained its leadership in the domestic market with a
commodity polymer production share of 47%. RIL’s polymer production for the
year remained unchanged despite turnaround activities carried out during the
year. RIL’s cracker operating rate was at 90% in FY-11 as compared to 98% in
FY-10. Due to cracker shutdown at Hazira, Nagothane and Gandhar manufacturing
sites, the production of ethylene decreased by 8% to 1,686 KT while the
production of propylene decreased by 5% to 696 KT as compared to the
corresponding period of the previous year.
New developments
and growth initiatives
Reliance took a lead role in creating new market by conducting customer
meets - “Rishta” throughout India, to propel growth of PP, PE, and PVC in the
field of engineering, agriculture, infrastructure and packaging sector.
Geotextile made from PP has immense potential in construction of roads
with improved durability and in river and sea embankment, to prevent erosion.
Reliance worked in tandem with textile ministry, industry bodies to facilitate
new investment in this “Technical Textile”. Several states of India have
already specified use of PP geotextile in road and river embankment.
Agriculture is a prime sector for sustainable growth of India. Non-woven
PP has proven to be an ideal solution in banana plantations. The Company has tied
up for new projects with several agricultural institutes to establish PP in
other fruits and vegetables plantation. Apart from increased yields, it will
help farmers to grow high quality produce for export business.
The Company worked with leading consumer durable manufacturers to
successfully introduce PP in fourwheelers, refrigerators and water filters.
Reliance is also driving metal replacement and import substitution programme
with major commercial/two wheeler manufacturers by introducing niche grade of
PP.
Reliance has made another break-through in glass replacement by using PP
bottles in “flavoured milk” packaging. Light weight, clear, break-resistant PP
bottles will now replace glass bottles. This is a landmark innovation of
Reliance offering high technology, safe and hygienic product.
Chemicals Business
Global scenario
The global chemical industry has undergone a transformation since major
financial crisis of 2008. The chemical industry benefitted from industry
discipline and rapid economic recovery, especially in China and India. Despite
unplanned outages, the industry demonstrated a slow and consistent improvement
in production volumes. The overall margins improved as increase in raw
materials could be passed on to the end-user even as operating rates remained
stable.
An excessive demand pull from the automotive sector coupled with high
natural rubber prices created high margin environment in the elastomer segment.
Shortage of cotton created superior performance in acrylic fibres and provided
support to acrylonitrile. Benzene: The global capacity of benzene in 2010 was
56 MMT against production of 40 MMT, resulting in average operating rate of
72%. Demand for the year was 39.8 MMT. Globally, capacity has increased by more
than 7.5 MMT in the past 4-5 years resulting in excess capacity.
Butadiene:
North-East Asia remains the world’s largest market with a global market
share of 44%, followed by 22%, and 21% by USA and Europe respectively. The
demand grew at 10% on a year-on-year basis.
Polybutadiene
Rubber (PBR) is the second largest synthetic rubber among elastomers and its demand
is estimated at 2.7 MMT. Global demand for synthetic rubber in coming years is
expected to grow at 4.8% annually.
Caustic Soda (CS): The installed
capacity of caustic soda is 85 MMT globally. The global consumption of caustic
soda increased to 63 MMT in FY-11, an increase of about 6% over FY-10 and
operating rate of 74%. Around 55% of the global chlor alkali capacity is now in
Asia.
Linear Alkyl
Benzene (LAB):
Globally, the consumption of LAB
is pegged close to 3 MMTPA against capacity of 3.6 MMTPA. The consumption
growth is at 2.5% per annum and is expected to continue at this rate driven by
Asian demand. With an installed capacity of 182 KT, Reliance is the world’s
fifth largest producer of LAB.
Acrylonitrile:
The global capacity of acrylonitrile in 2010 was 5.7 MMT against
production of 5.1 MMT, resulting in average operating rate of 90%. The demand
for the year was 5.08 MMT.
Indian chemical scenario
The Indian chemical industry environment was in line with the global
business environment with the exception of the elastomer segment due to the
excessive demand from the automobile segment. RIL has leadership position in
aromatic segment constituting benzene, toluene and xylene.
The demand from downstream sectors covering SBS rubber, PBR, ABS and
styrene butadiene latex recovered during the year and total demand is pegged at
117 KT. Domestic demand for PBR is met by RIL besides imports with consumption
estimated at 135 KT. The market estimates demand for PBR to reach 155 KT by
2013 (a growth of 5% CAGR).
RIL is the sole producer of acrylonitrile in India with a capacity of 41
KTA. RIL’s production in entirety is sold in the domestic market and represents
nearly 30% share with the rest being imported.
RIL’s crackers at Hazira, Nagothane, Dahej and Vadodara are among the
world’s most integrated petrochemical complexes with upstream refining, E and P
and downstream chemical facilities. RIL is a leading producer of LAB, benzene
and butadiene in India. RIL also produces basic aromatic building blocks of the
highest purity, conforming to the product grades. These include toluene,
mixed-xylene and ortho-xylene.
For the year, RIL’s benzene production was at 700 KT, a growth of 4% on
a year-on-year basis. Total sales for the year were 681 KT, out of which 381 KT
was exports, 215 KT was domestic and 85 KT was for captive consumption. Exports
of benzene during FY-11 were at 381 KT mainly to the US, Europe, besides Middle
East. Toluene, a major byproduct of BTX group, registered production volumes of
105 KT.
RIL produced 174 KT of butadiene during the year of which 61 KT was
exported after meeting the entire domestic requirement and captive consumption.
RIL is the only manufacturer of PBR in India. During the year, it
produced 76 KT, an increase of 4.7 % on a year-onyear basis, most of which was
sold in the domestic market.
RIL has the annual capacity to produce 168 KTA of caustic soda and 141
KT of chlorine. RIL’s capacity utilization for the year was at 97% as against
average domestic capacity utilization of 75%.
RIL produces 163 KT of LAB on an annualized basis. Tightness of normal
paraffins resulted in lower utilization of LAB capacity. RIL’s entire
production of acrylonitrile was sold in the domestic market. The upswing in
demand from derivatives and restricted global supplies supported prices and
margins.
Polyester Fibre
and Filament
Textile and clothing exports by major Asian countries witnessed
year-on-year growth amidst revived demand from US and European regions. Textile
and clothing imports into US in 2010 increased 15% over 2009 with textile
imports rising by 22% and clothing by 12% year-on-year. Chinese textile and
clothing exports in 2010 witnessed an impressive growth of 24% over 2009. In
case of India, textile and clothing exports witnessed a growth of 11.5% in the
first half of FY-11 and are likely to remain healthy in the near future.
There was a renewed investment in downstream textile industry,
especially in the Asian countries. The global market for spinning machinery and
components posted a strong recovery in 2010, following two years of weak
demand.
The polyester chain delta reached the highest level see in the last one
decade. In fact, it has sustained the level above $1,000/MT since the last two
quarters of FY-11. For the full year, chain delta were up 33% over last year.
Another major development during the year was extreme tightness in global
cotton availability. This led to record high price levels and widely impacted
the entire textile industry. Cotton prices started moving upwards especially
since the second half of FY-11. The commodity has witnessed extreme tightness
in availability, which resulted in record prices. Cotton prices reached the
highest level in the past 150 years, last seen during the American Civil
War way back in 1860s. Both fundamental and market forces played a major
role in taking cotton prices to unprecedented levels. During 2010-11 cotton
season, major producers like China, Pakistan and Australia witnessed rough
weather and floods, which impacted the output.
Towards the end of FY-11, cotton prices were 140% higher than those for
polyester as also higher than the historical average of 30%. Garment
manufacturers/designers are likely to find ways to use more polyester than
cotton in their fabric usage. On the demand side, the rising cotton price will
continue to drive substitution demand for polyester. The International Cotton
Advisory Committee (ICAC) forecasts that cotton’s share of the world textile
fibre market could decline to 33% by 2015 as compared to 36.5% in 2009.
MAJOR SUBSIDIARIES
Reliance Retail
Limited (RRL)
Reliance Retail continued to expand presence of its value and specialty
formats. During the year, Reliance Retail opened 90 new stores spanning across
‘value’ and ‘specialty’ segments. In-store initiatives, wider product choice
and value merchandising enabled the business to achieve robust growth during
this period.
Reliance Retail also established partnerships with several leading
international brands aimed at meeting consumer aspirations. During the year,
RRL doubled the presence of its partner businesses and operated over 160 stores
in various parts of the country. In the fashion and apparel segment, RRL now
operates around 40 stores with leading brands like Marks and Spencer (19
stores), Diesel (7 stores), Paul & Shark (4 stores), Ermenegildo Zegna (6
stores) and Timberland (6 stores).
Its presence in the optics business is in partnership with Grand Vision.
51 new stores were added during FY-11 taking the total presence to 100 stores
across key markets in the country. The retail chain offers single brand optical
products including Vision Express frames, lenses, contact lenses, sunglasses,
solutions and accessories.
For the very first time, consumers in India got the opportunity to
experience Hamleys, which is considered to be the world’s most wonderful toy
shop. The brand was launched in India with opening up of 2 stores during the
year.
iStore by Reliance Digital is a one-stop-shop for all Apple products and
services. There are 17 such stores currently operational.
Reliance Brands also announced exclusive licensing arrangement with two
leading international brands:
·
Steve Madden, a leading designer, wholesaler and
retailer of fashion-forward footwear and accessories for women, men and
children.
·
Quiksilver, a leading outdoor sports lifestyle
company to launch their core brands ‘Quiksilver’ and ‘Roxy’.
Across India, Reliance Retail serves over 2.5 million customers every
week. Its loyalty programme, “Reliance One”, has the patronage of more than
6.75 million customers.
Haryana Special
Economic Zone (SEZ)
With a vision to develop industrial infrastructure and support economic
growth, Reliance Haryana SEZ Limited (RHSL), a joint venture between Reliance
Ventures Limited (RVL) (a subsidiary of RIL) and HSIIDC Limited (a Government
of Haryana Company), has received approval from the Government of Haryana to
undertake flexible development of the Reliance Haryana Project as an integrated
industrial enclave with all the required facilities such as logistics hub and
social infrastructure, ensuring sustainable development of manufacturing and
service activities with sufficient provision for future
In refining, the focus areas include maximising light olefins yields
from the fluidised catalytic cracker (FCC), improving propylene recovery in
FCC; advanced characterisation of crude and evaluation of chemicals for
desalting; increasing efficiency and reliability of refinery processes and
enhancing process capabilities in coking technology to help widen the crude
operating window. In the petrochemicals area, the focus is on providing
technology support to ensure efficient asset utilisation, development of
specialty grades/materials, development of catalysts /additives for cost
reduction, value addition to by-product streams, and leveraging opportunities
at the chemicals/oil interface. RIL is involved in some cutting-edge
technologies like fuel cells, carbon fibres, bio-fuels, and gasification
of in the New Millennium Indian
Technology Leadership Initiative (NMITLI) project on indigenous Fuel Cell
Technology Development.
Some major
ongoing/completed projects include:
·
Selection of cost effective FCC catalysts and
additives for improved conversion and yields.
·
Propylene yield improvements.
·
Benzene reduction in refining to promote clean
fuel.
·
Upgrading of bottom barrel through initiatives such
as carbon black production, reduced conversion etc.
·
De-salter operation improvements.
·
Computational fluid dynamics for trouble shooting.
·
Molecular compositional blending models.
·
Polypropylene quality control.
·
Polyolefin inorganic precursor technology
development.
·
High performance PP homo and copolymers.
·
Development of high performance additives for
polyolefins.
·
Development of clarifiers for PP grades.
·
High melt strength PP by post reactor route.
Superabsorbent polymers.
·
Bio-filtration process for effluent water
treatment.
·
Catalyst for selective dehydrogenation of C11-C14
nparaffins.
·
Inhouse development and utilization of additives
for cracker coking passivation.
·
Development of oxygen barrier PET for beer
packaging.
·
Productivity enhancement through polymer
modification.
·
New co-catalyst systems for bottle-grade PET
productivity enhancement.
·
Development of anti-pill polyester, elastic
polyester, low melt polyester, low cost flame retardant polyester, low antimony/antimony
free polyester, and super micro denier polyester staple fiber.
·
Development of low cost catalyst, additives and
spin finish for polyester.
·
Spinning productivity enhancement.
·
Deep cut operation
·
Revamption of coker unit and process of pitch.
Creation and protection of intellectual property (IP) for the Company
continues to be an ongoing area of focus. RIL’s portfolio for national and
international patents is increasing in existing as well as new technology
areas. As a part of our business transformation, RIL is adopting and
implementing best in class business processes with stateof- the-art
applications to enhance technical excellence.
INNOVATION
RIL aspires to be one of the most innovative companies in the world. The
Reliance Innovation Leadership Centre designs, develops and deploys programmes
in realizing this vision anchored around this agenda.
The Leading Expert Access Programme (LEAP) created a hat trick of Nobel
Laureates’ lectures. Prof Venki Ramakrishnane delivered the 13th Reliance LEAP
lecture at the National Chemical Laboratory (NCL). In the past, LEAP speakers
have included Nobel Laureates Prof Jean Marie Lehn and Prof Robert Grubbs. LEAP
has been designed to inspire the RIL family through the life, work and
experience of global innovation leaders.
Sustainable growth of any organisation has one important element-
generation, exploitation and management of its IP. Last year saw a new energy
in this domain through the structuring and institutionalising of the IP thrust
area. The focus of the IP team is to transform the organization from being an
IP user to an IP creator. RIL’s patent portfolio is on the upswing, both in
quality and quantity terms including protection in overseas markets.
AWARDS AND
RECOGNITION
Leadership
Shri Mukesh Ambani, Chairman and Managing Director, RIL, has been
nominated to a ‘key advocacy group of Millennium Development Goals’, whose
mandate includes finding ways to fight socio-economic evils such as poverty, by
the United Nations in 2010. Shri Ambani is the only Indian to be a part of the
MDG Advocacy Group that comprises eminent international personalities. Shri
Mukesh Ambani has been re-elected as Vice Chairman of the Business Council for
Sustainable Development’s (WBCSD) Executive Committee for a second consecutive
term in 2010. The Foundation Board of the World Economic Forum (WEF) elected
Shri Mukesh Ambani on its Board. WEF’s mission is to improve the state of the
world and the elected board members make valuable contributions to this mission
through their involvement. Shri Mukesh Ambani received the prestigious ‘Dwight
D Eisenhower Global Leadership Award’ at the Business Council for International
Understanding’s Annual Global Awards Gala in 2010. The Asia Society, New York
presented the ‘Global Vision Award’ to Shri Mukesh Ambani, honoring global
leaders who help promote understanding between Asians and Americans in 2010.
Shri Mukesh Ambani received the NDTV Profit Business Leadership Award 2010 from
the Finance Minister, Government of India in 2010. The senior editors of
Financial Chronicle unanimously voted Shri Mukesh Ambani as ‘Businessman of the
Year for 2010’. Shri PMS Prasad was bestowed with the “Outstanding Achievement
– Natural Gas” Award at the OCEANTEX 2010.
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:
HIGHEST EVER
QUARTERLY FINANCIAL PERFORMANCE
RECORD REFINING
THROUGHPUT AND STRONG MARGIN RECOVERY
RICH GAS AND CONDENSATE
DISCOVERY IN DEEP-WATER, EAST COAST OF INDIA
Reliance
Industries Limited (RIL) today reported its financial performance for the
quarter ended 30th June, 2011. Highlights of the un-audited financial results
as compared to the corresponding period of the previous year are:
|
4Q FY 11 |
(Rs. In Millions) |
1Q FY12 |
1Q FY11 |
% Change wrt 1Q FY11 |
|
75283 |
Turnover |
83689.000 |
610070.000 |
37.2% |
|
10760 |
PBDIT |
110050.000 |
100640.000 |
9.3% |
|
6677 |
Profit Before Tax |
72640.000 |
60380.000 |
20.3% |
|
5376 |
Net Profit |
56610.000 |
48510.000 |
16.7% |
|
16.4 |
EPS (Rs) |
173.000 |
148.000 |
16.9% |
Highlights of
Quarter’s Performance
- Turnover
increased by 37.2% to Rs. 836890.000 millions ($ 18.7 billion)
- Exports increased
by 57.5% to Rs. 517370.000 millions ($ 11.6 billion)
- PBDIT
increased by 9.3% and achieved a record level of Rs. 110050.000 millions
($ 2.5 billion)
- Profit Before
Tax increased by 20.3% to Rs. 72640.000 millions ($ 1.6 billion)
- Cash Profit
increased by 5.5% to Rs. 90060.000 millions ($ 2.0 billion)
- Net Profit
increased by 16.7% to Rs. 56610.000 millions ($ 1.3 billion)
- Gross
Refining Margin at $ 10.3 / bbl for the quarter ended 30th June 2011
CORPORATE
HIGHLIGHTS
- Reliance Industries Limited (RIL) has been informed that the Cabinet
Committee of Economic Affairs has given its approval to the proposal of
RIL to assign 30% of its interest to BP Exploration (Alpha) Limited in 21
out of 23 Blocks. RIL will pursue with the Government to resolve the issues,
if any, concerning the balance two blocks.
- 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 would have 30%
participating interest.
- AXA, Bharti Enterprises (“Bharti”) and Reliance Industries Limited
(“RIL”) reached an understanding on the acquisition by RIL and its
associate Reliance Industrial Infrastructure Limited (“RIIL”) of Bharti‟s shareholding of 74% in Bharti AXA Life Insurance Co. Ltd (“Bharti
AXA Life”) and Bharti AXA General Insurance Co. Limited. (“Bharti AXA
GI”).
·
Commenting on the
results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries
Limited said:
Commenting on the results, Mukesh D. Ambani,
Chairman and Managing Director, Reliance Industries Limited said:
“Reliance
Industries continues to deliver strong financial and operating results. The
growth in earnings was driven by strong refining margins and sustained
performance in the petrochemicals business. Our cash flows give us the
unparalleled opportunity to allocate capital to higher-margin resource plays in
leading markets around the world. We remain committed towards investing in
India and have commenced the investment program in the petrochemical business.”
FINANCIAL
PERFORMANCE REVIEW AND ANALYSIS
Turnover achieved
for the quarter ended 30th June 2011 was Rs. 83,6890.000 millions ($ 18.7 billion), an increase
of 37.2% on a year-on-year basis. Increase in volume accounted for 4.5% growth
in revenue and higher prices accounted for 32.7% growth in revenue. Exports
were higher by 57.5% at Rs. 51,7370.000 millions
($ 11.6 billion) as against Rs. 32,8490.000 millions in the corresponding period of the previous year.
Consumption of raw materials increased by
40.6% to Rs. 64,4430.000 millions ($ 14.4 billion) mainly on account of higher
crude oil prices. Purchases for traded goods increased from Rs. 4740.000
millions to Rs. 5730.000 millions.
Employee costs were at ` 878 millions ($ 196 million) for the quarter as against
Rs. 6170.000 millions due to higher benefits.
Other expenditure increased by 20.1% from Rs.
3,5830.000 millions to Rs. 4,3010.000 millions ($ 962 million). This was on
account of higher power and fuel expenses, higher stores, chemicals and repair
charges, higher selling expenses and lower exchange differences.
Operating profit before other income and
depreciation increased by 6.3% from Rs. 9,3420.000 millions to Rs. 9,9270.000
millions ($ 2.2 billion). Net operating margin was lower at 11.9% as compared
to 15.3% on a year-on-year basis. This was due to base effect and higher
weightage of the low-margin refining business.
Other income was higher at Rs. 1,0780.000
millions ($ 241 million) as against Rs. 7220.000 millions on a year-on-year
basis due to income from larger cash balance and higher yields.
Depreciation (including depletion and
amortization) was lower by 8.3% at Rs. 3,1950.000 millions ($ 715 million)
against Rs. 34850.000 millions on a year-on-year basis. This was mainly due to
lower depletion charge in oil and gas and lower depreciation charge for the
petrochemicals segment.
Interest cost was at Rs. 5450.000 millions ($
122 million) as against Rs. 5410.000 millions. Gross interest cost was higher
at Rs. 6800.000 millions ($ 152 million) as against Rs. 6430.000 millions on a
year-on-year basis. Interest capitalized was higher at Rs. 1350.000 millions ($
30 million) as against Rs. 1020.000 millions.
Profit after tax was Rs. 5,6610.000 millions
($ 1.3 billion) as against Rs. 4,8510.000 millions for the corresponding period
of the previous year.
Basic earnings per share (EPS) for the quarter
ended 30th June 2011 was ` 17.3 ($ 0.4) against ` 14.8 for the corresponding period
of the previous year.
Debt as on 30th June 2011 was Rs. 67,0410.000
millions ($ 15.0 billion) compared to Rs. 67,3970.000 millions as on 31st March
2011. Net gearing as on 30th June 2011 was 11.4% as against 13.3% as on 31st
March 2011.
RIL has cash and cash equivalents of Rs.
45,7750.000 millions ($ 10.2 billion) which are invested mainly in bank
deposits, mutual funds and Government securities / bonds. RIL‟s net debt is
equivalent to 0.5 times its annualized PBDIT for the quarter ended 30th June 2011.
The net capital expenditure for the quarter
ended 30th June 2011 was Rs. 1,2020.000 millions ($ 269 million).
RIL retained its credit ratings. Its domestic
credit rating is AAA from CRISIL and FITCH while it has investment grade
ratings for its international debt from Moody‟s and S&P as Baa2 and BBB respectively.
|
4Q FY 11 |
(Rs. In Millions) |
1Q FY12 |
1Q FY11 |
% Change wrt 1Q FY11 |
|
41040.000 |
Segment revenue |
38940.000 |
46650.000 |
-16.5% |
|
15690.000 |
Segment EBIT |
14730.000 |
19210.000 |
-23.3% |
|
555440.000 |
Capital Employees |
562730.000 |
534450.000 |
|
|
11.3% |
ROCE (%) (Annualized) |
10.5% |
14.4% |
|
Lower production from KG-D6 and PMT blocks
resulted in lower oil & gas revenue and partly offset by higher crude oil
price realization. EBIT margins remains flat as compared to trailing quarter
but were lower on a year-on-year basis due to lower oil and gas production.
DOMESTIC OPERATIONS
KG-D6
For the quarter ended 30th June 2011,
production from KG-D6 was 1.41 million barrels of crude oil and 156.2 BCF of
natural gas, reduction of 41% and 18% respectively as compared to 1Q FY11.
Production of gas condensate was 0.21 million barrels, a growth of 81.6 % over
the previous year.
Gas contracts are operational with 57
customers in the fertilizers, power, city gas distribution, steel, LPG,
refinery and petrochemical sectors. Gas sales have been prioritized as per
Government of India‟s MOPNG directive with effect from May 09, 2011.
Panna-Mukta and Tapti (PMT)
For the quarter, gas production from
Panna-Mukta declined marginally by 1% to 17.5 BCF. Crude oil production from
this block was 2.7 million barrels, a decline of 14% on a year-on-year basis. The
reduction in production is mainly due to natural decline.
For the same period, gas production from Tapti
reduced by 27% to 20.1 BCF. Condensate production also declined by 27% to 0.3
million barrels. The decrease in production was also due to natural decline.
Other Updates
Other Updates :
RIL‟s domestic portfolio consists of 28
exploration blocks. RIL also holds 30% interest in PMT fields. During the
period, the following two discoveries were notified to Directorate General of
Hydrocarbons (DGH), Government of India:
·
Dhirubhai-53 in Well SA1
in CY PR-D6 block
·
Dhirubhai-54 in Well A2
in KG III-D9 block
Two deepwater rigs are under operation for
exploration and appraisal activities. Four exploratory wells were drilled
during the quarter, with one each in KG-D9, CY-D6, CY-D7 and PR-D8. In
A proposal for commerciality for discovery
Dhirubhai-42 in KGD6 block was submitted to DGH, Government of India.
CBM BLOCKS
Drilling of production wells is underway in
Sohagpur (East and West) blocks. During the quarter, RIL drilled 8 development
wells taking the cumulative number of development wells drilled to 14.
INTERNATIONAL OPERATIONS
Conventional
During the quarter, Block 18 in Oman was
relinquished. Reliance had 70% participating interest in the block. As a
result, Reliance has 12 international blocks in its portfolio.
During the quarter, as part of the exploratory
campaign, the company acquired 3D seismic data in Colombia blocks - 410 sq. km.
in Borojo North and 490 sq. km. in Borojo South.
Oil production for Block 09 (Yemen) was
affected due to prevailing adverse situation.
SHALE GAS
Reliance has 3 JVs for shale gas business in
USA with Chevron, Pioneer and Carrizo.
Joint ventures with Chevron and Pioneer are in
production. The JVs‟ exit production rate as on June 30, 2011 is around 133 MMSCFD of gas and
around 13,800 barrels of gas condensate per day.
Development activities are underway in Carrizo
and production is expected to commence in 2H CY11.
Henry Hub, the reference benchmark for gas
prices in USA averaged at $ 4.36 / MMBTU during the quarter. Similarly, WTI,
the reference benchmark for gas condensate averaged at around $ 102 / bbl
during the quarter
REFINING AND MARKETING BUSINESS
|
4Q FY 11 |
(Rs. In Millions) |
1Q FY12 |
1Q FY11 |
% Change wrt 1Q FY11 |
|
627040.000 |
Segment Revenue |
736890.000 |
505310.000 |
45.8% |
|
25090.000 |
Segment EBIT |
31990.000 |
20350.000 |
57.2% |
|
167.000 |
Crud Refined (Million Tonnes) |
170.000 |
169.000 |
|
|
92.000 |
GRM ($ / bbl) |
103.000 |
73.000 |
|
|
735560.000 |
Capital Employed |
704600.000 |
789330.000 |
|
|
13.6% |
ROCE (%) Annualized |
18.2% |
10.3% |
|
RIL‟s gross refining margin (GRM) for quarter was at
$ 10.3 /bbl as against $ 7.3 /bbl in the corresponding period of the previous
year. Singapore complex refining margin averaged at $ 8.5/bbl for 1Q FY12 which
is double of the level in 1Q FY11.
For the quarter, return on capital employed
for the segment improved significantly to 18.2% due to sharp improvement in the
refining margin.
RIL processed 17.0 million tonnes of crude and
achieved its highest ever average utilization of 110%. Average utilization
rates for refineries globally during the same period were 83.3% in North
America, 74.1% in Europe and 85.1% in the Asia.
Arab light - heavy differential for 1Q FY12
improved to $ 5.1/bbl as compared to $ 2.7/bbl in the same quarter last year.
This significant change can be attributed to strong demand for light products,
continued supply disruption in Libya and increased supply (of mainly
heavy-sour) crude from Saudi Arabia.
Asian gasoil cracks continued to remain strong
on the back of robust demand from the power sector in China and the supply
disruptions following on from the aftermath of the natural disasters in Japan.
In Asia, gasoil crack for the quarter was at $ 19.5/bbl which was significantly
higher than the $ 11.4/bbl for the quarter ending June 2010.
Increased sales of personal automobiles in
developing Asia as well as tightness in US gasoline stock which opened the
arbitrage to the West from Asia resulted in gasoline cracks improving to $14.3/
bbl vis-à-vis $9.4/bbl in 1Q FY10.
Naphtha cracks weakened during the quarter due
to cracker maintenance and unplanned outages and impact of shutdown in Japan.
Naphtha cracks for the quarter were lower at $ (-) 2.2 / bbl as compared to $
(-) 0.2 / bbl in 4Q FY11 and $ (-) 0.5/bbl in 1Q FY11.
Revenue for the segment increased by 45.8% from
Rs. 50,5310.000 millions to Rs. 73,6890.000 millions ($ 16.5 billion). Increase
in volumes accounted for 6.5% growth in revenue while higher prices accounted
for 39.4% growth in revenue.
Exports of refined products were $ 10.2
billion as against $ 6.3 billion in 1Q FY11. This was accounted for by about
10.37 million tonnes of product. Asia continues to remain the largest export
destination due to strong demand and increased economic activity in the region.
EBIT for the refining business was at Rs.3,1990.000
millions ($ 716 million), an increase of 57.2% on a year-on-year basis. EBIT
margin increased to 4.3% as compared to 4.0% in 1Q FY11 due to higher refining
margins.
OIL AND GAS (EXPLORATION and PRODUCTION) BUSINESS
|
4Q FY 11 |
(Re. In Millions
) |
1Q FY12 |
1Q FY11 |
% Change wrt 1Q
FY11 |
|
181940.000 |
Segment Revenue |
183660.000 |
139030.000 |
32.1% |
|
26260.000 |
Segment BEIT |
22150.000 |
20530.000 |
7.9% |
|
368610.000 |
Capital Employed |
349140.000 |
377740.000 |
|
|
28.5% |
ROCE (%) Annualized |
25.4% |
21.7% |
|
|
5.2% |
Production (millions Tonnes) |
5.5% |
4.9% |
|
During the quarter ended 30th June 2011,
revenue for the segment increased by 32.1% from Rs. 139030.000 millions to
Rs.183660.000 millions ($ 4.1 billion). Increase in volume accounted for 6.5%
growth in revenue and higher prices accounted for 25.6% growth in revenue.
EBIT margins for the quarter ended 30th June
2011 were at 12.1% as compared to 14.8% in 1Q FY11 due to base effect of higher
revenues. On a trailing quarter basis, EBIT margins were lower due to negative
impact of margin contraction in Polyester and Polymer chains which was
partially offset by higher margins in PVC, PET, Butadiene and LAB.
Production of polymer products (PE, PP and
PVC) increased to 1.1 million tonnes, an increase of 17% on a year-on-year
basis. This increase was due to full operations during the quarter as against
planned turnarounds during 1Q FY11.
Production of fibre intermediates (PX, PTA and
MEG) increased to 1.2 million tonnes, an increase of 12% on a year-on-year
basis. Production of polyester products (POY, PSF and PET) volume decreased
marginally to 411 thousand tonnes due to marginal changes in the product mix.
RIL has maintained its focus on specialty products which accounted for 53% of
PSF and 45% of PFY production.
Domestic demand for polyester products
decreased by 5% during the quarter on account of price volatility and labour
and power shortage at the downstream industry. Polymer products demand also
decreased by 4% during the quarter.
ORGANIZED RETAIL
In the first quarter of FY 2011-12, Reliance
Retail has continued to grow its revenues through existing store operations
bolstered by strong like-for-like growth.
Reliance Retail‟s commitment to offer best shopping experience
and value to its consumers was further augmented by opening of a new prototype
store of Reliance Super under the 'Value Format'.
Keeping pace with the store roll out in the
„Specialty segment', we opened 20 stores across Reliance Digital, Reliance
Trends and Reliance Footprint formats taking them a step closer to attaining
market leadership in respective categories.
Currently, Reliance Retail operates over 1,000
stores spanning „Value‟ and „Specialty‟ segments; in 14 states and more than 85 cities in India, with a total
area of more than 4.4 million square feet. Reliance Retail‟s loyalty program
„Reliance One‟, has now patronage of more than 7 million customers".
TELECOM
RIL‟s subsidiary, Infotel Broadband Services
Limited (Infotel), which has emerged as a successful bidder in all the 22
circles of the auction for Broadband Wireless Access (BWA) spectrum conducted
by the Department of Telecom, Government of India is in the process of setting
up a world class Broadband Wireless network using state-of-the-art technologies
and finalizing the arrangement with leading global technology players, service
providers, infrastructure providers, application developers, device
manufacturers and others to help usher the 4G revolution into India.
UNAUDITED FINANCIAL RESULTS FOR QUARTER ENDED 30TH JUNE 2011
(Rs. in millions,
except per share data)
|
Particulars |
Quarter Ended
30.06.2011 |
|
2010 |
|
|
1. Turnover |
836890.000 |
|
Less: Excise Duty I Service Tax Recovered |
26710.000 |
|
2. Net Turnover |
81010.800 |
|
3. a) (Increase)! decrease in stock in trade / work in progress |
8970.000 |
|
b) Consumption of raw materials |
64430.000 |
|
c) Purchases |
5730.000 |
|
d) Staff cost |
8780.000 |
|
e) Depreciation |
31950.000 |
|
f) Other expenditure |
43010.000 |
|
g) Total Expenditure |
742870.000 |
|
4. Profit from Operations before other income, interest and tax |
67310.000 |
|
5. Other income |
10780.000 |
|
6. Profit before interest and tax |
78090.000 |
|
7. Interest and Finance Charges |
5450.000 |
|
8. Profit before tax from ordinary activities |
72640.000 |
|
9. Provision for Current Tax |
1453.000 |
|
10. Provision for Deferred Tax |
1500.000 |
|
11. Net Profit for the Period |
56610.000 |
|
12. Paid up Equity Share Capital, Equity Shares of Rs.10/- each |
32740.000 |
|
13. Reserves excluding revaluation on reserves |
|
|
14. Earnings per share (Face value of Rs.10) |
|
|
Basic |
17.3 |
|
Diluted |
17.3 |
|
15. Public shareholding [Excluding Equity Share Suspense and including
Global Depository Receipts (GDR’s)] |
|
|
- Number of Shares(in Millions ) |
1809.900 |
|
- Percentage of Shareholding (%) |
55.28 |
|
16. Promoters and Promoter Group shareholding |
-- |
|
a) Pledged / Encumbered |
|
|
- Number of Shares (in Millions) |
-- |
|
- Percentage of Total Promoters and Promoter Group Shareholding (%) |
-- |
|
- Percentage of Total Share Capital of Company (%) |
-- |
|
b) Non – Encumbered |
|
|
- Number of Shares (in Millions) |
1463.900 |
|
- Percentage of Total Promoters and Promoter Group Shareholding (%) |
100.00 |
|
- Percentage of Total Share Capital of Company (%) |
44.72 |
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, Jamnagar, Gandhar and Nagothane in earlier years.
Consequent to revaluation, there is an additional charge for depreciation of
Rs. 5820.000 millions ($ 130 million) for the quarter ended 30th June 2011
which has been withdrawn from the Reserves. This has no impact on the profit
for the quarter ended 30th June 2011.
3. There were no investors‟ complaints
pending as on 1st April 2011. All the 618 complaints received during the
quarter ended 30th June 2011 were resolved and no complaints were outstanding
as on 30th June 2011.
4. The audit committee reviewed the above results. The Board of
Directors at its meeting held on 25th July 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 quarter ended 30th June 2011.
UNAUDITED SEGMENT
INFORMATION FOR THE QUARTER ENDED 30TH JUNE 2011
(Rs.
In Millions)
|
Particulars |
Quarter Ended
30.06.2011 |
|
|
|
|
Segment Revenue |
|
|
- Petrochemicals |
183660.000 |
|
- Refining |
736890.000 |
|
- Oil and Gas |
38940.000 |
|
- Others |
2350.000 |
|
Gross Turnover (Turnover and Inter Segment Transfers) |
961840.000 |
|
Less: Inter Segment Transfers |
124950.000 |
|
Turnover |
836890.000 |
|
Less: Excise Duty / Service Tax Recovered |
26710.000 |
|
Net Turnover |
810180.000 |
|
- Petrochemicals |
22150.000 |
|
- Refining |
31990.000 |
|
- Oil and Gas |
14730.000 |
|
- Others |
80.000 |
|
Total Segment Profit before Interest and Tax |
68950.000 |
|
(i) Interest Expense |
(5450.000) |
|
(ii) Interest Income |
8110.000 |
|
(iii) Other Un-allocable Income Net of Expenditure |
1030.000 |
|
Profit before Tax |
72640.000 |
|
(i) Provision for Current Tax |
(14530.000) |
|
(ii) Provision for Deferred Tax |
(1500.000) |
|
Profit after Tax |
56610.000 |
|
3. Capital Employed (Segment Assets – Segment Liabilities) |
|
|
- Petrochemicals |
349140.000 |
|
- Refining |
704600.000 |
|
- Oil and Gas |
562730.000 |
|
- Others |
122790.000 |
|
- Unallocated Corporate |
614840.000 |
|
Total Capital Employed |
2354100.000 |
Notes to Segment Information for the Quarter Ended 30th June 2011
1. As per Accounting Standard 17 on Segment Reporting (AS 17), the
Company has reported "Segment Information", as described below:
a) The petrochemicals segment includes production and marketing
operations of petrochemical products namely, High and Low density Polyethylene,
Polypropylene, Polyvinyl Chloride, Polyester Yarn, Polyester Fibres, Purified
Terephthalic Acid, Paraxylene, Ethylene Glycol, Olefins, Aromatics, Linear
Alkyl Benzene, Butadiene, Acrylonitrile, Poly butyl Rubber, Caustic Soda and
Polyethylene Terephthalate.
b) The refining segment includes production and marketing operations of
the petroleum products.
c) The oil and gas segment includes exploration, development and
production of crude oil and natural gas.
d) The smaller business segments not separately reportable have been
grouped under the “others” segment.
e) Capital employed on other investments / assets and income from the
same are considered under “un-allocable”
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. 49.17 |
|
|
1 |
Rs. 76.65 |
|
Euro |
1 |
Rs. 66.63 |
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.