MIRA INFORM REPORT

Report Date :

25.02.2013

IDENTIFICATION DETAILS

Name :	RELIANCE INDUSTRIES LIMITED

Registered Office :	3rd Floor, Maker Chamber IV, 222, Nariman Point, Mumbai – 400021, Maharashtra

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	08.05.1973

Com. Reg. No.:	11-019786

Capital Investment / Paid-up Capital :	Rs.32710.000 Millions

CIN No.: [Company Identification No.]	L17110MH1973PLC019786

TAN No.: [Tax Deduction & Collection Account No.]	MUMRO9795C MUMR00462A

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturer and Marketer 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.

No. of Employees :	23166 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (80)

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

Maximum Credit Limit :	Large

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Exist

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 and resourceful businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. 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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Long Term Rating	AAA
Rating Explanation	Having the highest of safety regarding timely servicing of financial obligation. It carry lowest credit risk.
Date	01.06.2012

Rating Agency Name	CRISIL
Short Term Rating	A1
Rating Explanation	Having very strong degree of safety regarding timely payment of financial obligation. It carry lowest credit
Date	01.06.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Corporate Office :	3^rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-30325000 / 30327000 / 22785000 / 22785185
Fax No.:	91-22-22785111 / 30322268 / 22785185
E-Mail :	sudhakar.saraswatula@ril.com info@ril.com investor_relations@ril.com
Website :	http://www.ril.com

Factory :	Allahabad A/10-A/27, UPSIDC Industrial Area, P. O. T.S.L., Allahabad - 211 010, Uttar Pradesh, India. Barabanki Dewa Road, P.O. Somaiya Nagar, Barabanki - 225 123, Uttar Pradesh, India. Dahej P. O. Dahej, Vagra, Bharuch - 392 130, Gujarat, India Hazira Complex Village Mora, Bhatha P.O. Surat-Hazira Road, Surat 394 510, Gujarat, India Nagothane Complex P. O. Petrochemicals Township, Nagothane, Raigad - 402 125, Maharashtra, India Patalganga Complex B-4, Industrial Area, P.O. Rasauani, Patalganga, Near Panvel, District Raigad - 410207, Maharashtra, India Vadodara Complex P. O. Petrochemicals, Vadodara - 391 346, Gujarat, India Gadimoga Tallarevu Mandal, East Godavari District, Gadimoga – 533463, Andhra Pradesh, India Jamnagar Village Meghpar / Padana, Taluka Lalpur, Jamnagar – 361280, Gujarat, India Hoshiarpur Dharmshala Road, V.P.O. Chohal District Hoshiarpur - 146 024, Punjab, India. Nagpur Village Dahali, Mouda Ramtek Road Tehsil Mouda – 441 104, District Nagpur Maharashtra, India. Naroda 103/106, Naroda Industrial Estate Naroda, Ahmedabad - 382 330, Gujarat, India. Silvassa 342, Kharadpada, Naroli, Near Silvassa Union Territory of Dadra and Nagar Haveli – 396235, India.

Factory 2:	Unit Of Reliance Jamnagar Sez Polymer Export Division Fortune 2000 5^th Floor C – 3 G Block Bkc Bandra (East) Mumbai – 400051, Maharashtra, India

Corporate Communication Center :	Maker Chambers IV, 1^st Floor, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel No. :	91-22-22785568 / 22785585 / 22785000
Fax No. :	91-22-22785185
Email :	ccd@ril.com
Web Site:	www.ril.com

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Mukesh D. Ambani
Designation :	Chairman and Managing Director
Date of Appointment:	31.07.2002
Qualification:	Chemical Engineer from Mumbai University and MBA from Stanford University, U.S.A.

Name :	Mr. Nikhil R. Meswani
Designation :	Executive Director
Appointment:	Since 1990
Qualification:	Chemical Engineer

Name :	Mr. Hital R. Meswani
Designation :	Executive Director

Name :	Mr. P.M.S. Prasad
Designation :	Executive Director

Name :	Mr. Ramiklal H. Ambani
Designation :	Non Executive Director

Name :	Mr. Mansingh L. Bhakta
Designation :	Non Executive Director

Name :	Mr. Yogendra P. Trivedi
Designation :	Non Executive Director

Name :	Dr. Dharam Vir Kapur
Designation :	Non Executive Director

Name :	Mr. Mahesh P. Modi
Designation :	Non Executive Director

Name :	Prof. Ashok Mishra
Designation :	Non Executive Director

Name :	Prof. Dipak C Jain
Designation :	Non Executive Director

Name :	Dr. Raghunath A. Mashelkar
Designation :	Director
Date of Appointment :	09.06.2007

KEY EXECUTIVES

Name :	Mr. K. Sethuraman
Designation :	Group Company Secretary and Chief Compliance Officer

Name :	Mr. Kanga and Company
Designation :	Solicitors and Advocates

Audit Committee :	Mr. Yogendra P. Trivedi (Chairman)
	Mr. Mahesh P. Modi
	Dr. Raghunath A. Mashelkar

Corporate Governance and Stakeholders' Interface Committee :	Mr. Yogendra P. Trivedi (Chairman)
	Mr. Mahesh P. Modi
	Dr. Dharam Vir Kapur

Employees Stock Compensation Committee :	Mr. Yogendra P. Trivedi (Chairman)
	Mr. Mukesh D. Ambani
	Mr. Mahesh P. Modi
	Prof. Dipak C. Jain

Finance Committee :	Mr. Mukesh D. Ambani (Chairman)
	Mr. Nikhil R. Meswani
	Mr. Hital R. Meswani

Health, Safety and Environment Committee :	Mr. Hital R. Meswani (Chairman)
	Dr. Dharam Vir Kapur
	Mr. P.M.S. Prasad
	Mr. Pawan Kumar Kapil

Remuneration Committee :	Mr. Mansingh L. Bhakta (Chairman)
	Mr. Yogendra P. Trivedi
	Dr. Dharam Vir Kapur

Shareholders'/Investors' Grievance Committee :	Mr. Mansingh L. Bhakta (Chairman)
	Mr. Yogendra P. Trivedi
	Mr. Nikhil R. Meswani
	Mr. Hital R. Meswani

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	21172026	0.68
Bodies Corporate	1322280240	42.41
Any Others (Specify)	120471003	3.86
Trusts	120471003	3.86
Sub Total	1463923269	46.95
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1463923269	46.95
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	60604539	1.94
Financial Institutions / Banks	4240456	0.14
Central Government / State Government(s)	3199049	0.10
Insurance Companies	283824952	9.10
Foreign Institutional Investors	574287409	18.42
Qualified Foreign Investor	5	0.00
Sub Total	926156410	29.70
(2) Non-Institutions
Bodies Corporate	152440388	4.89
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	347783112	11.15
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	25434434	0.82
Any Others (Specify)	202351420	6.49
NRIs/OCBs	21871820	0.70
Clearing Members	2257236	0.07
Shares held by Subsidiary Companies on which no voting rights are exercisable	171883624	5.51
Any Other	6338740	0.20
Sub Total	728009354	23.35
Total Public shareholding (B)	1654165764	53.05
Total (A)+(B)	3118089033	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	110407458	0.00
Sub Total	110407458	0.00
Total (A)+(B)+(C)	3228496491	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Marketer 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.

Products :

Item Code No. (ITC Code)	Product Description

27.10	Bulk Petroleum Products
390210.00	Polypropylene (PP)
540242.00	Polyester Filament Yarn (PFY)
290243.00	Paraxylene (PX)
390120.00	Polyethyl Ene

Brand Names :

Recron	Apparels, Home textiles Industrial sewing threads, Automotive Upholstery carpets, canvas, luggage, spunlace and non-woven fabrics
Recron Fibrefill	Pillows, cushions, quilts, mattresses, furniture, toys and non-wovens
Recron 3S	Construction industry (concrete/mortar), cement (sheet and pipe), paper industry (conventional and speciality), battery industry,
Recron Stretch	Blouse material, denim, shirting, suiting, dress material, T-shirt, sportswear, swimwear, medical bandages and diapers
Recron Coutluk	Dress material, shirting, suiting, furnishing fabric, curtain and bed sheet
Recron Dyefast	Ladies outerwear, feather yarn for knitted cardigan, decorative fabric and home furnishing

Recron Superblack	Apparel, automotive, non-woven and interlining
Recron Superdye	Woven and knitted apparel, furnishing and home textile
Relpet	Packaged-water, beverages, confectionary, pharmaceutical, agro-chemical and food products
Repol	Woven sacks for cement, food-grain, sugar, fertiliser; leno bags for fruits and vegetables, TQ and BOPP films and containers for packaging textiles, processed food, FMCG, office stationery; components for automobile and consumer durables, moulded furniture, luggage, houseware, geo-textiles and fibres for non-woven textiles.
Relene	Woven sacks, raschel bags for fruits and vegetables, containers for packaging edible oil, processed food, FMCG, lubricants, detergents, chemicals, pesticides, industrial crates and containers, carrier bags, houseware, ropes & twines, pipes for water supply, irrigation, process industry and telecom; films for packaging milk, edible oil, salt, processed food, roto-moulded containers for storage of water, chemical storage and general purpose tanks, protective films and pipes for agriculture, cable sheathing, lids and caps, master batches.
Reon	Pipes and fittings; door and window profiles, insulation and sheathing for wire and cables, rigid bottles & containers for packaging applications, footwear, flooring, partitions, roofing, I.V. fluid and blood bags.
Relpipe	Irrigation, water supply, drainage, industrial effluents, telecom cable ducts, gas distribution
Relab	Detergents
Vimal	Fabrics, suits, jackets, shirts and trousers
V2	Fabrics

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity
Refining of Crude Oil	Mill. MT	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 :

23166 (Approximately)

Bankers :

Allahabad Bank
Andhra Bank
Bank of America
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Citibank N.A
Credit Agricole Corporate and Investment Bank
Corporation Bank
Deutsche Bank
The Hong Kong and Shanghai Banking
Corporation Limited
HDFC Bank Limited
ICICI Bank Limited
IDBI Bank Limited
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab National Bank
Standard Chartered Bank
State Bank of Hyderabad
State Bank of India
State Bank of Patiala
Syndicate Bank
The Royal Bank of Scotland
Union Bank of India
Vijaya Bank

Facilities :

Secured Loans	31.03.2012 (Rs in Millions)	31.03.2011 (Rs in Millions)
Non Convertible Debentures	60240.000	93530.000
Long Term Maturities of Finance Lease Obligations	1680.000	1880.000
Foreign Currency Loans	738	312
Rupee Loans	19	251
Total	69490.000	101040.000
NOTE: Non Convertible Debentures referred above to the extent of: a) Rs. 15930.000 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. 50000.000 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. 17200.000 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. 1100.000 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. 500.000 Millions are secured by way of first mortgage / charge on certain properties situated at Ahmedabad in the State of Gujarat and on fixed assets situated at Nagpur Complex of the Company. f) Rs. 440.000 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. Working Capital Loans 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. Other Loans and Advances from banks include commercial paper of Rs. NIL (Previous Year Rs. NIL). Maximum balance outstanding at any time during the year being Rs. NIL (Previous Year Rs. 48250.000 Millions).
Unsecured Loans	31.03.2012 (Rs in Millions)	31.03.2011 (Rs in Millions)
Bonds	45640.000	39760.000
Term Loans- from banks	1680.000	375950.000
Deferred payment liabilities	90.000	120.000
Foreign Currency Loans - Buyers Credit	97360.000	117410.000
Rupee Loans	1000.000	0.000
Total	516780.000	533240.000

Banking Relations :	Good

Auditors :
Name :	Chaturvedi and Shah Chartered Accountants Rajendra and Company Chartered Accountants

International Accountants:	Deloitte Haskins and Sells Chartered Accountants

Subsidiary Companies :	Reliance Industrial Investments and Holdings Limited Reliance Ventures Limited Reliance Strategic Investments Limited Reliance Industries (Middle East) DMCC Reliance Jamnagar Infrastructure Limited Reliance Retail Limited Reliance Netherlands B.V. Reliance Haryana SEZ Limited Reliance Fresh Limited Retail Concepts and Services (India) Limited Reliance Retail Insurance Broking Limited Reliance Dairy Foods Limited Reliance Exploration and Production DMCC Reliance Retail Finance Limited RESQ Limited Reliance Commercial Associates Limited Reliancedigital Retail Limited Reliance Financial Distribution and Advisory Services Limited RIL (Australia) Pty Limited Reliance Hypermart Limited Gapco Kenya Limited Gapco Rwanda Limited Gapco Tanzania Limited Gapco Uganda Limited Gapoil (Zanzibar) Limited Gulf Africa Petroleum Corporation Transenergy Kenya Limited Recron (Malaysia) Sdn Bhd Reliance Retail Travel and Forex Services Limited Reliance Brands Limited Reliance Footprint Limited Reliance Trends Limited Reliance Wellness Limited Reliance Lifestyle Holdings Limited Reliance Universal Ventures Limited Delight Proteins Limited Reliance Autozone Limited Reliance F and B Services Limited Reliance Gems and Jewels Limited Reliance Integrated Agri Solutions Limited Strategic Manpower Solutions Limited Reliance Agri Products Distribution Limited Reliance Digital Media Limited Reliance Food Processing Solutions Limited Reliance Home Store Limited Reliance Leisures Limited Reliance Loyalty and Analytics Limited Reliance Retail Securities and Broking Company Limited Reliance Supply Chain Solutions Limited Reliance Trade Services Centre Limited Reliance Vantage Retail Limited Wave Land Developers Limited Reliance-GrandOptical Private Limited Reliance Universal Commercial Limited Reliance Petroinvestments Limited Reliance Global Commercial Limited Reliance People Serve Limited Reliance Infrastructure Management Services Limited Reliance Global Business B.V. Reliance Gas Corporation Limited Reliance Global Energy Services Limited Reliance One Enterprises Limited Reliance Global Energy Services (Singapore) Pte. Limited Reliance Personal Electronics Limited Reliance Polymers (India) Limited Reliance Polyolefins Limited Reliance Aromatics and Petrochemicals Limited Reliance Energy and Project Development Limited Reliance Chemicals Limited Reliance Universal Enterprises Limited International Oil Trading Limited Reliance Review Cinema Limited Reliance Replay Gaming Limited Two Sisters Foods India Limited (Formerly Reliance Nutritional Food Processors Limited) RIL USA Inc. Reliance Commercial Land and Infrastructure Limited Reliance Corporate IT Park Limited Reliance Eminent Trading and Commercial Private Limited Reliance Progressive Traders Private Limited Reliance Prolific Traders Private Limited Reliance Universal Traders Private Limited Reliance Prolific Commercial Private Limited Reliance Comtrade Private Limited Reliance Ambit Trade Private Limited Reliance Petro Marketing Limited LPG Infrastructure (India) Limited Reliance Corporate Centre Limited Reliance Convention and Exhibition Centre Limited Central Park Enterprises DMCC Reliance International B. V. Reliance Corporate Services Limited Reliance Oil and Gas Mauritius Limited Reliance Exploration and Production Mauritius Limited Indiawin Sports Private Limited Reliance Holding USA Inc. Reliance Marcellus LLC Infotel Broadband Services Limited Reliance Strategic (Mauritius) Limited Reliance Eagleford Midstream LLC Reliance Eagleford Upstream LLC Reliance Eagleford Upstream GP LLC Reliance Eagleford Upstream Holding LP Mark Project Services Private Limited Reliance Energy Generation and Distribution Limited Reliance Marcellus II LLC Reliance Security Solutions Limited Reliance Industries Investment and Holding Private Limited Reliance Office Solutions Private Limited Reliance Style Fashion India Private Limited GenNext Innovation Ventures Limited Reliance Home Products Limited Infotel Telecom Limited Reliance Styles India Limited Rancore Technologies Private Limited Omni Symmetry LLC Reliance Sibur Elastomers Private Limited

Associates:	GenNext Ventures LLP Reliance Industrial Infrastructure Limited Reliance Europe Limited Reliance LNG Limited Indian Vaccines Corporation Limited Gujarat Chemicals Port Terminal Company Limited Reliance Utilities and Power Private Limited Reliance Utilities Private Limited Reliance Ports and Terminals Limited Reliance Gas Transportation Infrastructure Limited

Enterprises over which Key Managerial Personnel are able to exercise significant influence :	Dhirubhai Ambani Foundation Jamnaben Hirachand Ambani Foundation Hirachand Govardhandas Ambani Public Charitable Trust HNH Trust and HNH Research Society Reliance Foundation

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

5000000000	Equity Shares	Rs.10/- each	Rs.50000.000 Millions
1000000000	Preference Shares	Rs.10/- each	Rs.10000.000 Millions
			Rs.60000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

3271059340	Equity Shares	Rs.10/- each	Rs. 32710.000 Millions

Note:

1. 162,67,93,078 Shares out of the issued, subscribed and paid up share capital were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium and Reserves.

2. 12,93,93,183 Shares out of the issued, subscribed and paid up share capital were allotted in the last five years pursuant to the various Schemes of amalgamation without payments being received in cash.

3. 45,04,27,345 Shares out of the issued, subscribed and paid up share capital were allotted on conversion / surrender of Debentures and Bonds, conversion of Term Loans, exercise of warrants, against Global Depository Shares (GDS) and re-issue of forfeited equity shares, since inception.

4. 17,18,83,624 Shares out of the issued, subscribed and paid up share capital held by Subsidiaries do not have Voting Rights and are not eligible for Bonus Shares

5. The Company has reserved issuance of 13,39,30,481 (Previous year 13,52,79,244) 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 68,817 [Previous year 35,200] Options to the eligible employees which includes 4,100 options at a price of Rs. 972/- per option, 18,000 options at a price of Rs. 871/- per option, 23,717 options at a price of Rs. 847 per option, 15,000 options at a price of Rs. 765 per option and 8,000 options at a price of Rs. 715 per option (Previous year, 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.

6. The Board of Directors of the Company approved the buyback of up to 120.000 Millions fully paid up equity shares of Rs. 10/- each, at a price not exceeding Rs. 870/- payable in cash, up to an aggregate amount not exceeding Rs. 104400.000 Millions from the open market through Stock Exchange(s). During the year, the Company has bought back and extinguished 36,63,431 Equity Shares of Rs. 10/- each.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		32710.000	32730.000	32703.700
2] Share Application Money		0.000	90.000	0.000
3] Reserves & Surplus		1628250.000	1482670.000	1339002.400
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1660960.000	1515490.000	1371706.100
LOAN FUNDS
1] Secured Loans		69490.000	101040.000	116705.000
2] Unsecured Loans		516780.000	533240.000	508241.900
TOTAL BORROWING		586270.000	634280.000	624946.900
DEFERRED TAX LIABILITIES		121220.000	115620.000	109263.000

TOTAL		2368450.000	2265390.000	2105916.000

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1177820.000	1521760.000	1532598.900
Capital work-in-progress		36950.000	27590.000	121388.200

INVESTMENT		540080.000	376520.000	232286.200
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	359550.000	298250.000	269816.200
	Sundry Debtors	184240.000	174420.000	116602.100
	Cash & Bank Balances	395980.000	271350.000	134626.500
	Other Current Assets	2490.000	1990.000	914.000
	Loans & Advances	254290.000	175310.000	101832.200
Total Current Assets		1196550.000	921320.000	623791.000
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	11890.000	27770.000	360556.000
	Other Current Liabilities	528480.000	508020.000	7938.000
	Provisions	42580.000	46010.000	35654.300
Total Current Liabilities		582950.000	581800.000	404148.300
Net Current Assets		613600.000	339520.000	219642.700

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		2368450.000	2265390.000	2105916.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3299040.000	2481700.000	1924610.200
		Other Income	61920.000	30520.000	24604.700
		TOTAL (A)	3360960.000	2512220.000	1949214.900

Less	EXPENSES
		Cost of Materials Consumed	2748140.000	1932340.000
		Purchases of Stock-in-Trade	14410.000	14640.000	1618803.100
		Changes in Inventories of Finished Goods, Stock-in-Process and Stock-in-Trade	(8720.000)	(32430.000)
		Employee Benefits Expense	28620.000	26240.000
		Other Expenses	180400.000	159650.000
		TOTAL (B)	2962850.000	2100440.000	1618803.100

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		398110.000	411780.000	330411.800

Less	FINANCIAL EXPENSES (D)		26670.000	23280.000	19972.100

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		371440.000	388500.000	310439.700

Less/ Add	DEPRECIATION/ AMORTISATION (F)		113940.000	136080.000	104965.300

	PROFIT BEFORE TAX (E-F) (G)		257500.000	252420.000	205474.400

Less	TAX (H)		57100.000	49560.000	43117.700

	PROFIT AFTER TAX (G-H) (I)		200400.000	202860.000	162356.700

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	43632.900

Less	APPROPRIATIONS
		Transfer to General Reserve	NA	NA	140000.000
		Debenture Redemption Reserve	NA	NA	0.000
		Interim Dividend on Equity Shares	NA	NA	1895.000
		Proposed Dividend on Equity Shares	NA	NA	20846.700
		Tax on Dividend	NA	NA	3462.400
	BALANCE CARRIED TO THE B/S		NA	NA	53841.900

	EARNINGS IN FOREIGN CURRENCY
		FOB Value for Exports	1982690.000	1405461.500	1026556.000
		Interest Earnings	10.000	69.800	250.800
		Other Earnings	2040.000	44.800	203.200
	TOTAL EARNINGS		1984740.000	1405576.100	1027010.000

	IMPORTS
		Raw Materials	2542480.000	1749143.900	1520830.500
		Stores, Chemicals and Packing Materials	31200.000	20505.000	14306.300
		Capital Goods	3250.000	5018.300	11902.200
	TOTAL IMPORTS		2576930.000	1774667.200	1547039.000

	Earnings Per Share (Rs.)		61.21	62.00	49.65

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	918750.000	903350.000	938860.000
Total Expenditure	851280.000	826300.000	855130.000
PBIDT (Excl OI)	67470.000	77050.000	83730.000
Other Income	19040.000	21120.000	17400.000
Operating Profit	86510.000	98170.000	101130.000
Interest	7840.000	7370.000	8060.000
PBDT	78670.000	90800.000	93070.000
Depreciation	24340.000	22770.000	24570.000
Profit Before Tax	54330.000	68030.000	68500.000
Tax	9600.000	14270.000	13480.000
Profit After Tax	44730.000	53760.000	55020.000
Net Profit	44730.000	53760.000	55020.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.96	8.07	8.33

Net Profit Margin (PBT/Sales)	(%)	7.81	10.17	10.68

Return on Total Assets (PBT/Total Assets}	(%)	10.84	10.33	9.53

Return on Investment (ROI) (PBT/Networth)		0.16	0.16	0.15

Debt Equity Ratio (Total Liability/Networth)		0.78	0.80	0.75

Current Ratio (Current Asset/Current Liability)		2.05	1.64	1.54

LOCAL AGENCY FURTHER INFORMATION

CBI SEEKS A-G’S OPINION FOR FILING CASE AGAINST RELIANCE INDUSTRIES

Attorney General GE Vahanvati will take the final call on filing a case against Reliance Industries (RIL) and the Director General of Hydrocarbons (DGH) in connection with the development of eastern offshore KG-D6 fields.

The Central Bureau of Investigation (CBI) which registered three preliminary enquiries has sought opinion from the Attorney General in one of them for registering a case in the alleged artificial cost inflation by RIL, said sources.

The agency, which began a probe in 2009 claimed to have completed its enquiry into the alleged conspiracy in allowing RIL to raise cost of developing the KG-D6 field from $2.39 billion proposed in 2004 to $8.8 billion in 2006.

The erstwhile head of DGH VK Sibal, who gave RIL approvals for raising the cost on the plea that gas reserves as well as cost of services have gone up is also under the scanner. The agency had registered one FIR against Sibal in 2001 who is also under investigation.

Operators like RIL are allowed to recover all their cost before sharing profits with the government.

Higher capital cost directly impacts the government’s revenue.

The agency had registered a preliminary enquiry into the case in November 2009 on request of the oil ministry following several objections raised by the Central Vigilance Commission on the KG-D6 deal.

The agency during its probe also sought the ministry’s assistance to understand the arguments offered by Reliance when it raised the cost of developing Dhirubhai 1 and 3 gas fields in the KG-D6 block from $2.39 billion proposed in 2004 to $5.196 billion in Phase-1 and another $3.3 billion in Phase-II, said officials.

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	Yes
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	No
Date of Birth of Proprietor/Partner/Director, if available	No
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	Yes

LITIGATION DETAILS

Case Details

Bench:-Bombay

Stamp No.:- WPST/12049/2012	Filing Date 02/05/2012	Reg. No:- WP/4295/2012	Reg. Date:- 07/05/2012
Petitioner: Maharashtra Trade Union Congress		Resp. Adv.: RELIANCE INDUSTRIES LIMITED
Petn. Adv.: Mr. S.K More		Resp. Adv.:- A.S Dayal and Associates
Bench:-Single		Stage:- PETITIONS FOR ADMISSION - FRESH [CIVIL SIDE MATTERS]
Status:- Pre-Admission Last Date:-26.09.2012 Last Coram:-ON'BLE SHRI JUSTICE ANOOP V.MOHTA Act :- Industrial Dispute Act, 1947.

Case Details

Bench:-Bombay

Stamp No.:- WPST/12490/2012	Filing Date 04/05/2012	Reg. No:- WP/4250/2012	Reg. Date:- 05/05/2012
Petitioner: Bhartiya Kamgar Karmachari and NAR		Resp. Adv.: RELIANCE INDUSTRIES LIMITED
Petn. Adv.: Mr. G.S BAJ		Resp. Adv.:- S.K. More
Bench:-Single		Stage:- PETITIONS FOR ADMISSION - FRESH [CIVIL SIDE MATTERS]
Status:- Pre-Admission Last Date:-26.09.2012 Last Coram:-ON'BLE SHRI JUSTICE ANOOP V.MOHTA Act: - Industrial Dispute Act, 1947.

RESULTS OF OPERATIONS

The European economies stagnated and the US witnessed a downgrade in its credit rating, while the growth engines of the global economy, China and India were forced to tighten liquidity to tame rising inflation. In addition, civil unrest in Libya and the tsunami in Japan posed further challenges. Despite these constraints and the challenging environment, the Company performed reasonably well and the highlights of the performance are as under:

Revenue from operations increased by 31.4% to Rs. 3397920.000 Millions ($66.8 billion)

Exports increased by 41.8% to Rs. 2080420.000 Millions ($ 40.9 billion)
PBDIT decreased by 3.3% to Rs. 398110.000 Millions ($ 7.8 billion)
Profit Before Tax increased by 2.0% to Rs. 257500.000 Millions ($ 5.1 billion)
Cash Profit decreased by 7.3% to Rs. 319940.000 Millions ($ 6.3 billion)
Net Profit decreased by 1.2% to Rs. 200400.000 Millions ($3.9 billion)
Gross Refining Margin at $ 8.6 / bbl for the year ended March 31, 2012 The Company is one of India’s largest contributors to the national exchequer primarily by way of payment of taxes and duties to various government agencies. During the year, a total of Rs. 281970.000 Millions ($ 5.5 billion) was paid in the form of various taxes and duties.

HISTORY

Subject is an India-based company. The company is India's largest private sector company on all major financial parameters. They are the first private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 117th amongst the world's Top 200 companies in terms of profits. The company operates world-class manufacturing facilities across the country at Allahabad, Barabanki, Dahej, Hazira, Hoshiarpur, Jamnagar, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara. The company operates in three business segments: petrochemicals, refining, and oil and gas. The petrochemicals segment includes production and marketing operations of petrochemical products. The refining segment includes production and marketing operations of the petroleum products. The oil and gas segment includes exploration, development and production of crude oil and natural gas. The other segment of the company includes textile, retail business and special economic zone (SEZ) development. In the year 1966 the RIL was founded by Shri Dhirubhai H.Ambani, it was started as a small textile manufacturer unit. In May 8, 1973 RIL was incorporated and confirmed their name as RIL in the year 1985. Over the years, the company has transformed their business from manufacturing of textiles products into a petrochemical major. The company has set up a texturising / twisting facilities in 1979, RIL has also set up plants for Polyester Staple Fiber (PSF) in 1986 and for Linear Alkyl Benzene (LAB) and Purified Terephthalic Acid (PTA) in 1988. RIL has setup a petrochemical facility to produce HDPE and PVC at Hazira, Gujarat in technical collaboration with DuPont and BF Goodich respectively. The Hazira petrochemical plant was commissioned in 1991-92. In the year 1995-96, the company entered the telecom industry through a joint venture with NYNEX, USA and promoted Reliance Telecom Private Limited in India. Reliance became the first corporate in Asia to issue bonds in the U.S at the year of 1996-97. The company commissioned an 80,000 tonne bottle grade PET chip plant at Hazira manufacturing complex. Reliance's PET chips has been accepted internationally due to their high quality during the year 1997-98 and in the same year Reliance Industries Planned to invest around Rs. 50000 Millions (USD 1,250 million) in building two world-scale plants at the site of the Jamnagar refinery in Gujarat. In 1998-99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance Gas. In 1999-2000, RIL commissioned the world's largest 1.4 million tonnes per annum Paraxylene (PX) plant at its new integrated petrochemicals complex at Jamnagar which was planned at 1997-98. Reliance Petroleum Limited (RPL) was amalgamated with Reliance Industries Limited in the year 2002-03. In 2004-05, RIL acquired the polyester major, Trevira GmbH, headquartered in Frankfurt, Germany which has the capacity of 130,000 tonnes per annum of polyester staple fibers, polyester filament yarns and polyester chips. In the year 2006, the company set up a new export-oriented refinery through its subsidiary, Reliance Petroleum Limited (RPL). In the year 2007, Indian Petrochemicals Corporation Limited (IPCL) merged with the company. Also, Reliance Retail entered the organised retail market in India with the launch of its convenience store format under the brand name of 'Reliance Fresh'. During the year, the company commissioned their largest expansion project. The company expanded its polypropylene (PP) capacity by 280 KTA at Jamnagar that increased the combined capacity to 1,710 KTA. During the year 2007-08, the company signed an agreement to certain polyester (capacity) assets of Hualon, Malaysia. It took over the majority control of Gulf Africa Petroleum Corporation (GAPCO) and started shipping products to the East African markets. Also, the company signed MoU with GAIL (India) Limited to explore opportunities of setting up petrochemical plants in feedstock rich countries outside India. In April 2008, the company signed gas sales and purchase agreement (GSPA) with the customers in power sector for supply of natural gas to be produced from the KG-D6 block. During the year, Reliance Commercial Associates Limited, Reliance Neutraceuticals Private Limited, Reliance Pharmaceuticals (India) Private Limited, Reliance Petroinvestments Limited, Gull Africa Petroleum Corporation (Mauritius), Gapco Tanzania Limited, Gapoil Tanzania Limited, Gapco Kenya Limited, Gapco Uganda Limited, Gapco Rwanda SARL, Gapoil Zanzibar Limited, Transenergy Kenya Limited, Recron (Malaysia) SDH BHD, Peninsula Land Kenya Limited, Reliance International Exploration and Production INC, Wavely Investments Limited, Reliance Digital Retail Limited, Reliance Lifestyle Holdings Limited, Reliance Universal Ventures Limited, Reliance Home Store Limited, Reliance Autozone Limited, Reliance Trade Services Centre Limited, Reliance Integrated Agri Solutions Limited, Reliance Agri Products Distribution Limited, Reliance Food Processing Solutions Limited, Reliance Supply Chain Solutions Limited, Reliance Digital Media Limited, Strategic Manpower Solutions Limited, Reliance Gems and Jewels Limited, Reliance Leisures Limited, Reliance Loyalty and Analytics Limited, Reliance Retail Securities and Broking Company Limited, Delight Proteins Limited, Reliance F and B Services Limited, Reliance Hypermart Limited, Reliance Financial Distribution and Advisory Services Limited, Reliance Retail Travel and Forex Services Limited, Reliance Trends Limited, Reliance Wellness Limited, Reliance Brands Limited, Reliance Footprint Limited, Abcus Retail Private Limited, Bigdeal Retail Private Limited, Advantage Retail Private Limited and RIL (Australia) PTY Limited became subsidiaries of the company. During the year 2008-09, Reliance People Serve Limited, Reliance Infrastructure Management Services Limited, Reliance Global Business, BV, Reliance Gas Corporation Limited, Reliance Globalenergy Services Limited, Reliance One Enterprises Limited, Reliance Personal Electronics Limited, Reliance Global Energy Services (Singapore) Pte Limited, Reliance Polymers (India) Private Limited, Reliance Polyolefins Private Limited, Reliance Aromatics and Petrochemicals Private Limited, Reliance Energy and Project Development Private Limited, Reliance Chemicals Private Limited, Reliance Universal Enterprises Private Limited, International Oil Trading Limited, Reliance Nutritional Food Processors Private Limited, Reliance Review Cinema Private Limited, Reliance Replay Gaming Private Limited, RIL USA Inc. Reliance Commercial Land Infrastructure Private Limited, Reliance Corporate IT Park Limited, Reliance Eminent Trading and Commercial Private Limited, Reliance Progressive Traders Private Limited, Reliance Prolific Traders Private Limited, Reliance Universal Traders Private Limited, Reliance Prolific Commercial Private Limited, Reliance Comtrade Private Limited, Reliance Ambit Trade Private Limited, Reliance Petro Marketing Private Limited, LPG Infrastructure (India) Private Limited and Reliance Infosolution Private Limited beaome subsidiaries of the company. Also, Abcus Retail Private Limited ceased to be a subsidiary of the company. During the year, Reliance Petroleum Limited (RPL) merged with the company with effect from April 1, 2008. From April 2, 2009, the company commenced production of hydrocarbons in its KGD6 block in the Krishna Godavari basin with the production of sweet crude of 420 API. In November 2009, the company discovered first oil exploration in the on land exploratory block CB-ONN-2003/1 (CB 10 A and B) awarded under the NELP-V round of exploration bidding. In December 2009, the company discovered gas 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 kilometers off the coast in the Bay of Bengal. In April 2010, the company commissioned a 1 MW solar Photo Voltaic power plant at Thyagaraj stadium in New Delhi. The power plant is expected to generate around 1.4 million units of electricity a year. It would cater to the power requirements of the stadium and the surplus would be fed to the grid at 11 KV. In addition, the company's subsidiary Reliance Marcellus LLC executed definitive agreements to enter into a joint venture with United States based Atlas Energy, Inc, of Pittsburgh, Pennsylvania under which Reliance will acquire a 40% interest in Atlas' core Marcellus Shale acreage position. In June 2010, the company entered into an agreement to acquire a substantial stake in Infotel Broadband Services (Private) Limited, which emerged as a successful bidder in all the 22 circles of the auction for Broad band Wireless Access (BWA) Spectrum conducted by the DOT. The company sees the broadband opportunity as a new frontier of knowledge economy in which it can take a leadership position and provide India with an opportunity to being forefront among the countries providing world-class 4G network and services.

MANAGEMENT'S DISCUSSION AND ANALYSIS

OVERVIEW

FY 2011-12 was a challenging year. The global economy, barely a year after recession, witnessed lower economic growth, resulting primarily from the Euro Zone debt crisis and high oil prices, which were fuelled by uncertainties of supply. Rising unrest in the Middle East and North Africa (MENA) resulted in unprecedented levels of crude oil volatility. The European economies stagnated and the US witnessed a downgrade in its credit rating, while the growth engines of the global economy, China and India were forced to tighten liquidity to tame rising inflation. In addition, civil unrest in Libya and the tsunami in Japan posed further challenges. According to the International Monetary Fund (IMF), the global economy is estimated to grow at a modest pace of 3.8% in 2011, as compared to a robust 5.2% in 2010.

These global events had a negative impact on demand, particularly in transportation fuels and petrochemical products. High crude oil prices hit the refining industry worldwide and resulted in reduced profitability. Despite the challenging environment, Reliance Industries Limited (RIL) performed reasonably well and grew its revenues by 31%. Its earnings were essentially flat at the PBDIT, PBT and net profit levels. RIL achieved its record level of exports which were higher by 41.8% at Rs. 2080420.000 Millions ($ 40.9 billion) as against Rs. 1466670.000 Millions in FY 2010-11.

RIL’s consolidated revenue from operations for the year ended March 31, 2012 was Rs. 3585010.000 Millions ($ 70.5 billion), an increase of 34.9% on a year-on-year basis. Profit after tax was at Rs. 197240.000 Millions ($ 3.9 billion), an increase of 2.2% as against Rs. 192940.000 Millions for the previous year. RIL’s performance can be attributed to its strong integrated energy portfolio and increasing demand for its products. The robust demand was underpinned by urbanization and growing disposable incomes in India and several emerging market economies.

A transformational step was taken in oil and gas exploration business- the completion of the partnership between RIL and BP. This strategic partnership is unprecedented as it straddles India’s entire gas value chain. Operationally, RIL completed three years of operations at KG-D6. Production from KG-D6 was 5.67 million barrels (MMBL) of crude oil and condensate, and 551.31 billion cubic feet (BCF) of natural gas. In the downstream segments, RIL maintained operating rates upwards of 100% in the refining and petrochemicals business. The Company processed 67.6 million tonnes (MMT) of crude, the highest ever, at its Jamnagar refinery complex.

For the seventh consecutive year, RIL was featured in the Fortune Global 500 list of the world’s largest corporations. Its rankings comprised:

134 based on sales
119 based on profits

RIL-BP PARTNERSHIP

On February 21, 2011, RIL and BP announced their strategic alliance. Under the aegis of this alliance, BP took 30% participatory interest in 21 oil and gas production sharing contracts operated by RIL in India, including the KG-D6 block. The 21 oil and gas blocks cover approximately 220,000 square kilometres. The partnership combines BP’s world-class deepwater exploration and development capabilities with RIL’s expertise in project management and operations. It will focus on exploring, discovering and producing hydrocarbons in India’s deep water blocks and will aim at significantly contributing to India’s energy security.

Further, on November 18, 2011, RIL and BP announced the incorporation of India Gas Solutions Private Limited, a 50:50 Joint Venture (JV) company, which will focus on global sourcing and marketing of natural gas in India. This JV Company is an integral part of the relationship between RIL and BP, and it establishes the commitment of both entities to the Indian market. The demand for gas has been growing at an exponential rate and both RIL and BP anticipate natural gas to emerge as the preferred choice of fuel, given its properties as a cleaner and more sustainable fuel source.

BP’s stake was at an aggregate consideration of $ 7.2 billion, subject to completion adjustments for interests to be acquired in the 21 production sharing contracts. Further performance payments of up to $ 1.8 billion could be paid based on exploration success that result in the development of commercial discoveries.

RIL-SIBUR JOINT VENTURE

SIBUR is the largest petrochemical company in Russia and Eastern Europe. On February 21, 2012, RIL and SIBUR formed a JV called Reliance Sibur Elastomers Private Limited. The JV will be the first manufacturer of butyl rubber in India and with its targeted production of 100,000 tonnes of butyl rubber per annum, it will be the fourth largest producer globally. The JV will cater to the demand for synthetic rubber from the Indian automotive industry, which currently exceeds 75,000 tonnes per year and is being met through imports. Investment in the JV is in line with RIL’s vision of emerging as a significant player in the global synthetic rubber market. RIL’s share in the JV will total 74.9% while SIBUR will account for the rest. The JV will invest $ 450 million in setting up its facility, which is expected to be commissioned in 2014.

RIL’S SHARE BUY-BACK PROGRAMME

RIL announced a share buy-back programme on January 20, 2012, which will remain open up to January 19, 2013 or earlier as may be determined by the Company after necessary compliances. This buy-back programme is the largest-to-date in the history of Indian capital markets.

The Board of Directors of the Company at its meeting held on January 20, 2012 unanimously approved the buyback of up to twelve crore fully paid up equity shares of Rs. 10 each, at a price not exceeding Rs. 870 per equity share, payable in cash, up to an aggregate amount not exceeding Rs. 104400.000 Millions from the open market through stock exchange(s).

During the year, Company has bought and extinguished 36,63,431 equity shares. Consequently a sum of Rs. 40.000 Millions has been appropriated to Capital Redemption Reserve Account from Statement of Profit and Loss and Rs. 2750.000 Millions has been reduced from Securities Premium Reserve. The paid-up equity share capital of the Company as on March 31, 2012 has been reduced to Rs. 32710.000 Millions.

FINANCIAL PERFORMANCE

The net profit for FY 2011-12 was at Rs. 200400.000 Millions ($ 3,939 million) with a Compounded Annual Growth Rate (CAGR) of 20% over the past 10 years. RIL has announced a dividend of 85% amounting to Rs. 29410.000 Millions ($ 578 million), including dividend distribution tax. This is the highest pay out ever by Reliance continuing its commitment to distribution in a prudent manner.

RIL continued to play a pivotal role in the growth of India’s economy. It accounted for:

14% of country’s exports
5.5% of the indirect tax revenues
4% of the market capitalisation
Weightage of 9.3% in the Bombay Stock Exchange (BSE) Sensex
Weightage of 7.8% in the National Stock Exchange (NSE) Nifty

FINANCIAL REVIEW

RIL delivered superior financial performance with improvements across key parameters. The revenue from operations achieved for the year was Rs. 3397920.000 Millions ($ 66.8 billion), a growth of 31.4% over the previous year.

The increase in revenue was due to 2.2% rise in volumes and 29.2% rise in prices. During the year, exports, including deemed exports, were higher by 41.8% at Rs. 2080420.000 Millions ($ 40.9 billion).

The consumption of raw materials increased by 42.2% from Rs. 1932340.000 Millions to Rs. 2748140.000 Millions ($ 54.0 billion). This was mainly on account of higher crude oil prices. Traded goods purchases were Rs. 14410.000 Millions ($ 283 million) as compared to Rs. 14640.000 Millions in the previous year.

Employee cost was Rs. 28620.000 Millions ($ 563 million) for the year as against Rs. 26240.000 Millions in the previous year. The operating profit before other income declined by 11.8% from Rs. 381260.000 Millions to Rs. 336200.000 Millions ($ 6.6 billion). The net operating margin for the period was 10.2% as compared to 15.4% in the previous year.

Other income was higher at Rs. 61920.000 Millions ($ 1.2 billion) against Rs. 30520.000 Millions, primarily due to higher average cash balances. EBITDA decreased by 3.3% from Rs. 411780.000 Millions to Rs. 398110.000 Millions ($ 7.8 billion).

Interest cost was higher at Rs. 26670.000 Millions ($ 524 million) as against Rs. 23280.000 Millions. The gross interest cost was higher at Rs. 3090.000 Millions ($ 609 million) as against Rs. 28020.000 Millions for the previous year on account of higher foreign exchange differences. The interest capitalised was lower at Rs. 4300.000 Millions ($ 84 million) as against Rs. 4740.000 Millions in the previous year.

Depreciation (including depletion and amortisation) was lower at Rs. 113940.000 Millions($ 2.2 billion), against Rs. 13,6080.000 Millions in the previous year, primarily on account of lower depletion charges in oil and gas business following the transfer of 30% participating interest to BP.

Profit after tax was Rs. 200400.000 Millions ($ 3.9 billion) as against Rs. 202860.000 Millions for the previous year, a decrease of 1.2%. The earning per share (EPS) for the year was Rs. 61.2 ($ 1.2).

The Company is debt-free on a net basis as compared to gearing level of 13.5% as on March 31, 2011. Return on capital employed was at 11.6% and return on equity was at 13.4%. During the year, the Company has issued and allotted 13,48,763 equity shares to the eligible staff of the Company and its subsidiaries under Employees Stock Option Scheme. he net capital expenditure for the year ended March 31, 2012 was Rs. 12,5630.000 Millions ($ 2.5 billion).

During the year, a total of Rs. 281970.000 Millions ($ 5.5 billion) was contributed in the form of taxes and duties. RIL maintained its status as India’s largest exporter. The exports, including deemed exports, were at Rs. 2080420.000 Millions ($ 40.9 billion) as against Rs. 1466670.000 Millions in the previous year.

RIL exported to 119 countries around the world. The exports represent 61% of the RIL’s revenue from operations. Petroleum products constitute 88%, while the balance is contributed by petrochemicals.

BUSINESS PERFORMANCE

OIL AND GAS EXPLORATION AND PRODUCTION BUSINESS

OPERATING ENVIRONMENT

As per International Energy Agency (IEA) estimates, global upstream oil and gas investment grew strongly in 2011, hitting a new record of over $ 550 billion. This capital spending was 9% higher than in 2010 and almost 10% higher than the previous peak in 2008.

Annual upstream investment in nominal terms more than quadrupled between 2000 and 2011. It increased by 120% over this period in real terms, i.e., adjusted for cost inflation, as investment shifted to more complex projects with higher costs per barrel per day of capacity added.

Crude prices increased by 40% during the year wherein Brent oil prices averaged a record $ 113/bbl as compared to $ 86.7/bbl in the previous year.

On the contrary, increasing visibility on the potential of shale gas resulted in the US benchmark Henry Hub gas prices averaging at $ 3.66/MMBTU vis-à-vis $ 4.13/ MMBTU in FY 2010-11. Prices remained range-bound in the US due to excess drilling and lack of export infrastructure. However, the Asian LNG prices remained linked to crude oil and spot prices touched $ 13-14/ MMBTU. The oil demand, at 89 million barrels per day, was at a record high, owing primarily to the demand growth from emerging market countries.

LNG markets

In the past 5 years there has been a 40% increase in the global LNG production capacity, from approximately 176 MMT per year at the end of 2005 to 275 MMT per year at the end of 2011. By the end of 2011, 19 countries were exporting LNG, as compared to 12 countries prior to 2000. The list of LNG importing countries has grown to 26 in 2011 from 12 prior to 2000.

Rapid expansion of LNG trade in recent years has occurred primarily through the commercialisation of large reserves of conventional resources and interest in developing unconventional resources, such as natural gas shale formations, has also grown significantly. The results are already noticeable in North America, where the current development of shale resources has led to a reduction in demand for its imports.

USA Shale Gas

In the US, demand for natural gas in both the commercial and the residential sectors was 24.4 TCF, a record high volume as per EIA’s report on annual natural gas consumption. In order to fulfil the increased demand and new forms of supply, pipeline capacity expansion projects were undertaken with reported additions of over 10 BCF/D. On the supply side, natural gas production increased to 4.8 BCF/D in 2011, a year-on-year increase of 7.9%, which is the largest increase ever recorded. The gas demand growth was not able to keep pace with supply growth, thereby causing the US gas storage inventory to reach record ever levels and gas prices reaching 10-year lows.

Historically, the natural gas rig count drops sharply in a high production level environment. However, the shift towards liquids rich plays, where natural gas is essentially a by-product, has changed the US hydrocarbons industry.

In December 2011, it was estimated that close to 60% of the natural gas rigs (as defined by the Smith Bits rig count) were drilling for hydrocarbon plays with enough liquids to stay active under depressed gas prices. The announcement of shut-ins, the lowering of rig counts and further coal-to-gas switching would have normally rebalanced supply and demand, but with storage at a record surplus, gas prices continued to witness downward pressure and increased domestic demand and export for LNG will take several years to materialise.

RIL’S PERFORMANCE

KG-D6 Block

KG-D6 gas catered to demand from 56 customers in critical sectors like fertiliser, LPG, power, CGD, steel, petrochemicals and refineries. KG-D6 gas fields completed 1,092 days of 100% uptime and zero-incident production.

An average daily gas production from KG-D6 block for the year was 42.65 MMSCMD. The cumulative gas production was 1,808 BCF since inception, of which 551.31 BCF was produced in FY 2011-12. An average oil and condensate production for the year from the block was 15,481 barrels per day. The cumulative production of oil and condensate was 19.44 MMBL since inception, of which 5.67 MMBL was produced in FY 2011-12.

In the D1-D3 gas fields, 22 wells have been drilled till date, of which 18 were producer wells. Of these, 2 wells were drilled during this year. Extensive reservoir studies are underway for augmenting additional production with the integrated (or combined or joint) efforts of RIL and BP’s technical teams.

Based on the production data vis-a-vis original production geological model, validated by experts, it appears that:

decline in pressure / production has been higher than originally predicted;
volumes connected to existing wells is lower than envisaged;
gas outside the main channel is in small uneconomic volumes and not participating in production.

In view of the above, the Company has restated its Proved Reserves downwards. The guidelines issued by ICAI have been followed while in categorising reserves. The proved reserves have also reduced due to sale of participating interest to BP.6 wells in the D26 field were producer wells. The well MA-2, which was earlier a gas injection well, was converted to a production well since April 2010. Optimised Field Development Plan (OFDP) for the development of 4 satellite discoveries was approved by the Government of India in January 2012. Engineering activities, which are yet to commence will determine the future course of action. There have been re-estimation of reserves in these discoveries and RIL has restated the reserves downwards based on such results.

In addition, RIL has declared the commerciality of discovery D34 of KG-D6 and restated the Proved Reserves upwards based on re-estimation.

Revised plan of development for D26 field submitted to the DGH. Further an integrated development plan for gas discoveries in the KG-D6 block is being conceptualised to maximise capital efficiency and accelerate monetisation.

OTHER DOMESTIC BLOCKS

The Company made a discovery in the first well drilled in CY-D6 block – Well SA1 – Discovery Dhirubhai 53. The appraisal work programme submitted which is with DGH. The Company submitted a proposal for commerciality of 8 discoveries in CB-10 block and also notified declaration of commerciality for D32 and D40 in NEC-25 block.

During the year, as part of reassessment of its portfolio together with BP, RIL has considered 5 blocks as relinquished in its books and initiated the formal process of relinquishing these blocks. In addition to the above, RIL also relinquished 5 additional blocks from its portfolio.

Consequently, RIL’s domestic oil and gas portfolio consists of 17 exploration blocks excluding KG-D6, CBM, Panna-Mukta and Tapti.

The Company has issued arbitration notices in respect of obligation of Minimum Work Programme stipulated in the Production Sharing Contracts for four blocks relinquished by the Company. The amounts payable for the unfinished work under the Minimum Work Programme were agreed upon and settled in October, 2006 between the Government and the Company and were paid. Acting under a subsequent New General Policy promulgated on December 17, 2007, the Government reopened the issue and made further claims against the Company. The arbitrations relate to refund of the further amounts recovered subsequently by the Government from the Company. The Company has been advised that recovery of additional amounts by the Government is unsustainable and the amounts in the four arbitration notices aggregate to $ 8,899,242.07.

The Company has also issued a notice of arbitration to the Government in respect of Company’s entitlement to recover the entire amount of contract costs incurred by the Company as stipulated in the Production Sharing Contract. The Company has been advised that the Government cannot deny cost recovery of any element of contract costs on the ground that the levels of production mentioned in the development plan were not being achieved. The Company is following the required procedure for progressing the arbitrations.

PANNA-MUKTA AND TAPTI FIELDS

The Panna-Mukta fields produced 10.06 MMBL of crude oil and 71.24 BCF of natural gas in FY 2011-12, growing 8% and 37% respectively over the previous year, which was impacted due to a shutdown on account of a failure of sub-sea hose system and parting of anchor chains to the SBM.

Tapti fields produced 0.88 MMBL of condensate and 73.79 BCF of natural gas in FY 2011-12, a decline of 28% and 22%, respectively over the previous year. This decrease in production was due to a natural decline in the reserves. Panna SPM, which had a major failure in July 2010, resulting in a complete shutdown of oil and gas production for 3 months, was repaired and resumed operations. The entire SPM system is planned to be replaced in FY 2012-13.

COAL BED METHANE

RIL holds 3 CBM blocks in Central India, which include Sohagpur (East), Sohagpur (West) and Sonhat (North) in the domestic unconventional portfolio. Exploration phases for Sohagpur East and West blocks were completed and these blocks entered their development phase. RIL has completed the following operations in these blocks:

Drilled, logged and tested over 45 core holes for gas content, permeability and coal properties
Drilled over 85 production wells

Based on the additional number of wells and core holes drilled and the results achieved, proved reserves for the CBM blocks have been restated upwards. Further, RIL appointed consultants for subsurface and surface facilities design and sent a proposal for CBM pricing to MoPNG for approval. RIL plans to achieve first gas production in FY 2015 subject to necessary approvals from regulatory authorities.

SHALE GAS

RIL entered into three JVs in 2010 as part of its strategic focus on pursuing partnerships with experienced and successful operators in the fast growing resource base of shale gas in North America. In addition to these JVs with Chevron and Carrizo in Marcellus shale play of Pennsylvania and Pioneer Natural Resources in Eagle Ford shale Play of South Texas, RIL and Pioneer also partnered in the development of midstream assets through an equity investment for servicing the gathering needs of Pioneer upstream JV. Reliance’s current assets are now most strategically located within the premier shale plays of the US, the Marcellus in Pennsylvania and the Eagle Ford in South Texas. FY 2011-12 represented a significant year of growth for the shale gas business, with significant investments in drilling, completions and facility installations. As a result of these efforts, gross production from all three JV reported an exit rate of 233 MMCFPD of gas and 34.7 MBPD of liquids in December 2011 (a 7 fold increase on year-onyear basis). Number of rigs operational increased to 19 in March 31, 2012 vis a-vis 15 rigs that were operational a year ago.

JV activities focused on further development which included:

Drilling a total number of 231 wells across the JVs
Focus on drilling in liquid rich wells
Gathering agreements for gas and liquid in both plays
Implementing cost savings in drilling, fracking and mid-stream operations

PIONEER JV OPERATIONS

Pioneer JV operated 12 rigs with a focus on enhancing production, assessing additional portions of the play, while testing new procedures to improve drilling performance and lower costs. Reliance’s share of production from this JV was 41.7 BCFe for the year. The JV successfully pursued a strategy of prioritising drilling in liquid rich areas. Approximately 59% of the production was of liquids. The year also saw significant expansion in the mid-stream JV to increase capacity for handling higher production from upstream JV as well as third party volumes.

In 2012, tests conducted in Eagle Ford drilling included further pad drilling to evaluate optimum well spacing and to capture the efficiencies and cost reductions seen with multi-well pads. Other active Eagle Ford projects included the implementation and evaluation of artificial lift to keep oil and wet gas well unloaded. After extensive study and research, it was determined that both gas lift and rod pumping were technically viable options. The JV is currently evaluating economics as well as their pros and cons. Efforts are also underway to install additional centralised compression at multiple gathering points to assure continued flow and reduce system pressures.

CHEVRON JV OPERATIONS

During the year, the Chevron JV operated 5 rigs with accumulative production of 8.9 BCFe attributable to Reliance.

To ensure value optimisation by moderating current development, the number of rigs was reduced to 4 as of March 31, 2012. Efforts to optimise well performance were initiated in Marcellus with the drilling of longer laterals. This effort will help to improve project economics of the venture’s 315,000 gross acreage position in the future. Delays were seen in pipeline construction resulting in delayed production on line. Additional delays from regulatory, logistic and surface issues challenged the efforts in getting wells turned to sales, but these constraints are expected to be alleviated by mid-2012.

CARRIZO JV OPERATIONS

Carrizo commenced JV operated production in October 2011 with a production of 4.3 MCFPD from the core Northeast Pennsylvania (NEPA). The JV produced 1.8 BCFe, attributable to Reliance during the year with 2 operational rigs. During the year, the JV concentrated development plans in NEPA. The NEPA region was equipped with newly constructed pipeline infrastructure, which can efficiently transport gas to markets with flexibility to maximise netback. Additionally, RIL firmed pipeline transportation contracts, which allowed its gas to flow on the congested interstate pipeline systems.

CONVENTIONAL HYDROCARBONS: INTERNATIONAL BUSINESS

Reliance has 10 blocks in its international conventional portfolio, including 3 in Yemen (1 producing and 2 exploratory), 2 each in Kurdistan, Peru and Colombia and 1 in Australia amounting to a total acreage of over 51,000 sq. km.

During the year, the following activity was undertaken as part of the exploratory campaign:

2D seismic data acquisition of 42 LKM in Yemen block 37
3D seismic data acquisition of 500 sq. km. in Colombia blocks
Well testing in Sarta block in Kurdistan

The results of seismic survey in Block-41 (Oman) and well drilling in Block-K (East Timor) were not encouraging. Reliance Exploration and Production DMCC (REP DMCC) does not propose to carry on any further exploration activities in theses blocks. Hence, REP DMCC has relinquished Oman -Block 18, Oman - Block 41 and East Timor Block-K where REP DMCC had 70%, 75% and 75% participation interest respectively. The expenditure incurred on these blocks has been fully provided for in the books of REP DMCC, a wholly-owned subsidiary of RIL.

FUTURE OUTLOOK

It is expected that global energy consumption growth will average at around 1.6% per annum over the next two decades. Of this, non-OECD energy consumption is expected to be 54% higher by 2030, averaging 1.7% growth per annum, and accounting for 74% of the global energy growth. OECD energy consumption in 2030 is expected to be higher by 8%, with growth averaging at 0.3% per annum over the next two decades. The fuel mix will change relatively slowly due to long asset lifetime, but gas and non-fossil fuels will gain share at the expense of coal and crude oil. The fastest growing fuels are expected to be the renewables (including biofuels), which will grow at 7.8% per annum in the 2009-2035 time frame. Among the fossil fuels, gas is expected to grow the fastest at 1.7% per annum.

Non-OECD countries are likely to account for 80% of the global rise in gas consumption, with growth averaging at around 3% per annum. Demand growth is expected to be the fastest in non-OECD Asia (4.3% per annum) and the Middle East (3.9% per annum).

LNG

North America was once considered to be a likely destination for LNG supplies but increase in the US natural gas production and decreasing prices in the US markets have resulted in movement of LNG supplies to higher priced markets in South America, Europe and Asia instead.

It is likely that significant shale resources also exist in other large consuming countries, including China and several European nations. Although development of shale resources in China and other countries could slow the growth of their demand for imports, exploitation of unconventional resources will not necessarily be countervailing to growing international trade.

The demand for natural gas in India is expected to witness a CAGR of 20% over the next five years and could be touching 359 MMSCMD by 2017. India’s domestic production by 2017 will only be 209 MMSCMD, which implies that LNG imports will be nearly 150 MMSCMD (~42% of domestic consumption), making India a significant player in the global gas market.

SHALE GAS

FY 2012-13 will be a challenging year for shale gas, given the continuous weak gas prices, increasing wells costs in Eagle Ford due to market pressures and the need for drilling activity obligations to hold certain oil and gas leases, which will potentially expire in the near term. In light of the current gas supply and industry conditions, the JVs will take a long-term view around commodity price fluctuations, and will move forward with execution and capital efficiency improvement plans for enabling both cost reductions and well performance enhancement.

In FY 2012-13, RIL will begin to transition into a post carry period in both the Carrizo and Pioneer JVs. It is expected that the business environment will be challenging, both for commodity pricing and service industry optionality.

To meet these challenges, RIL will work with the JV partners to ‘right size’ levels of activity and portfolio mix, based on commodity pricing, industry conditions and various ‘selfhelp’ initiatives. These efforts will aid in maximising returns on capital expenditures for 2012, while retaining high value acreage in the JVs.

The Chevron JV has set aggressive cost reduction targets for FY 2012-13 with cost improvements to be achieved in both drilling and the completion of wells. In addition, to reduce location costs, efforts to maximise the number of producing wells per pad will be underway. New technology and processes will be deployed to collect, store and use water for both drilling and completion operations, which will aid in offsetting the low gas price environment and increased well costs.

Exploratory efforts in Carrizo JV operations for FY 2012-13 will be focused on assessing approximately 90,000 acres located in Central PA (‘C Counties’) which will preliminarily be evaluated with 6 wells (4 horizontal and 2 vertical).

Additionally, seismic acquisitions will aid in the placement of laterals to optimise well performance. To further enhance this evaluation, the JV has successfully retrieved whole core of the Marcellus Shale, which will be analysed to further assess ‘C-County’ reservoir properties.

The Pioneer JV will continue to focus on liquid rich areas of their acreage and on capital efficiencies, whilst in parallel fully appraising the remaining acreage. This JV will provide a dominant portion of our revenues and earnings in FY 2012-13 due to high liquids content and number of producing wells.

RIL’S PERFORMANCE HIGHLIGHTS

Overall, RIL had a very strong first half performance as it benefited both from the combination of strong middle distillate and gasoline cracks, and a wide light heavy crude differential. In the second half not only did cracks in general weaken, but complex refiners were doubly disadvantaged because of the collapse in light heavy crude spreads following on from the fuel oil strength. Hence the indicative Jamnagar margin was $ 10.2 per barrel in the first half but this fell to 7.2 in the second half.

In FY 2011-12, RIL processed 67.6 MMT of crude and achieved an average utilisation of 109%, which is significantly higher than the average utilisation rates for refineries globally. Exports of refined products were at $ 36 billion. This accounted for 39.6 MMT of product as compared to 38.6 MMT the previous year.

In terms of the overall trend in the total domestic market, demand growth continues to be strong, partly as a result of the domestic subsidy programme. During the year, the domestic demand for petroleum products increased from 138 MMT to 144.2 MMT, reflecting a growth of 4.5%. But the market remains an export market overall with Indian refining capacity increased to 213.8 MMT from 193.4 MMT. The demand of MS and HSD, which together constitute more than half of the consumption of petroleum products, registered a growth of 5.6% and 8.0% respectively during the year as compared to the previous year.

Several actions and investment were undertaken to ensure that RIL’s competitive advantage was strengthened and maintained:

Debottlenecking of important process unit capacities (e.g. CDU, Coker, VGOHT, DHDS, LCOHC, Alkylation etc.)
Enhanced recovery of high value products through increased operating efficiency
Widening of feedstock processing window
Various energy conservation measures

GAPCO

RIL consolidated operations of its GAPCO subsidiaries in East Africa. GAPCO group owns and operates large storage facilities and has a retail distribution network in Tanzania, Uganda, Rwanda and Kenya. It also owns and operates large coastal storage terminals in Dar-e-Salaam (Tanzania), Mombasa (Kenya) and inland terminal at Kampala (Uganda) and has well-spread depots in East Africa.

The Government of Tanzania commenced bulk procurement of gasoil, gasoline and Jet Kero through Product Importation Committee (PIC). Subsequent to continuous representations made by the industry to the Government, EWURA (Energy and Water Regularity Authority of Tanzania) revised the retail and wholesale pricing formula, which resulted in improved margins for OMCs. Regulatory challenges grew in the Eastern African Community (EAC) region due to the high cost of petroleum products.

GAPCO emerged as a brand of repute known for reliable quality and quantity of auto fuels at its retail outlets. It significantly improved its standing in the Eastern African market. The group also emerged as a key supplier to the neighbouring countries and signed a term contract for supplies to Zambia from Dar-e-Salaam Terminal in Tanzania.

During the financial year ended 31st December, 2011, 1248 KT of petroleum products were sold and its operations were profitable.

RIL USA INC

RIL is placing gasoline and alkylates in American markets through RIL USA Inc. North America and Latin American countries offer an attractive export destinations for RIL’s gasoline. RIL USA has storages in Bahamas and New York area to capture freight economics and blend margins whenever opportunities arise.

During the year, US gasoline market was weaker than anticipated. However, demand from Latin American regions was higher than previous year.

During the Financial year ended on 31st December, 2011, the company has sold 42.88 million barrels which includes gasoline and alkylate from RIL and blend stocks purchased from the local markets. Its operations were profitable.

FUTURE OUTLOOK

In FY 2012-13, net refining capacity additions of 2.6 MBD are estimated. Asia, led by China and India, is expected to contribute above 50% of this addition. The Middle East and Latin America will contribute the major part of the balance.

Growth in refinery capacity addition is expected to outpace growth in demand and will keep a check on operating rates. Demand in Europe and the US is expected to shrink or at best stay unchanged. European refiners are already facing the brunt of economic slowdown and high oil prices. FY 2011-12 witnessed several refinery closures in Europe and the US. These closures will take off some of the burden from other refiners, but the overall outlook for refining industry in these regions continues to remain challenging.

The situation of oversupply may be partially mitigated with additional closures in Europe and the US and due to delays in the commissioning of new projects slated to become operational during this period. Much of the new Eastern capacity has sophisticated upgrading capability, including cokers, which will potentially increase the demand for heavy oil. On the other hand the increased availability of lighter crudes in the US is leading to the cancellation of coker projects in the Gulf Coast and a switch in slates away from the heavy Arabian crudes.

Emerging economies, especially in Asia, may feel pressure from the sluggish European economy, and are likely to see some slowdown in demand growth. At a time when inflationary pressure has moderated and China and India could ease monetary policies to boost economic growth, this will maintain a strong outlook for gasoline growth in the region. The addition of new ethylene crackers will support naphtha margins in the medium-term. Middle distillate sector will remain the driver for Asian refining margins. Subsidy on diesel in emerging economies in Asia will shield the retail consumers from high and volatile oil prices, supporting strong demand growth.

Reconstruction work in Japan is also likely to provide further boost in demand. Asia’s fuel oil market has eased due to an increase in the arrival of more bunker-grade fuel supplies from the Middle East.

Overall, the outlook for Asian refining industries continues to remain positive to the rest of the world. For RIL, Jamnagar refining complex is highly competitive given its flexibility in crude slate, product slate and low operating costs. Forward plans are built on the basis that the environment will remain challenging and therefore cash and profit growth need to be driven on the back of selfhelp. A wide range of measures are being planned to further strengthen its competitive position: given the high oil prices, a number of schemes including petcoke gasification are under various stages of implementation with a view to achieving a sharp reduction in energy cost. These measures are being supplemented by many others that seek to improve the yield pattern as well as operating and cost efficiencies. Focus would also be on maximisation of netbacks through optimisation of product placement around the world.

PETROCHEMICALS BUSINESS

OPERATING ENVIRONMENT ETHYLENE

Ethylene is a raw material used in manufacturing polymers like polyethylene, polyvinyl chloride and polystyrene, as well as organic chemicals like ethylene oxide and ethylene glycols. These products are used for various end markets, such as packaging, transportation, electronics, textiles and construction.

Global ethylene markets recovered from oversupply that stemmed primarily from expanded capacity in the Middle East and Asia and recessionary global conditions. Global ethylene capacity grew by 3.6 MMT, while supply grew by 3.4 MMT. Global ethylene production totalled 125.6 MMT during the year, representing improved operating rate of 85.2% as compared to 84.9% in the previous year. Global ethylene prices remained high due to higher crude oil and naphtha prices and plant turnarounds. Asian ethylene margins were under pressure as polyethylene prices did not increase in line with naphtha costs. Global demand continued to be slow due to European crisis and stagnant Chinese demand.

Capacity additions in recent times have dramatically changed the supply scenario. During the year, 90% of capacity additions were from the Middle East and Asia.

The Middle East now accounts for 18% of global ethylene capacity as compared to 11% in 2006 and Asia for 33% as compared to 29% in 2006. With the operational capacity in the Middle East, the feedstock mix for cracker changed in favour of gas. Lower NGL prices on account of shale gas availability provided a significant advantage to the US ethane cracking costs as compared to integrated naphtha cracking. High energy and naphtha prices resulted in pressure on margins as well. Globally, naphtha-based operators experienced cost increases due to higher input costs.

POLYMERS

Polymers witnessed growth driven by applications where plastics delivered a cost advantage and performance enhancement. Consumption of global commodity plastics in FY 2011-12 was estimated at 205 MMT. This included products like polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), Polystyrene, ABS, PET and Polycarbonate. Of this, PE accounted for 37% of all plastic consumption, followed by PP and PVC which accounted for 26% and 18% of the total plastic demand respectively.

CHEMICALS BUSINESS

OPERATING ENVIRONMENT

Demand growth from sectors like paints, pharmaceuticals, detergents, tyres etc. contributed to the driving force for growth of chemical sector in India. The operating environment for various chemicals is summarised below:

Benzene: The global capacity of benzene in FY 2011-12 was 57.2 MMT against a production of 41.6 MMT, resulting in an average operating rate of 73%. Globally, there is now an excess capacity due to increases in the past 4-5 years by more than 9.5 MMT.

Butadiene: North-East Asia remained the largest market globally with a market share of 45% followed by 22% and 21% by USA and Europe respectively. The demand grew by 3% on a year-on-year basis.

Poly-butadiene Rubber: It is the second largest synthetic rubber among elastomers having an estimated demand at 3 MMT. Global demand for synthetic rubber in coming years is expected to grow at 7.8% annually.

Caustic Soda: Globally, the installed capacity of caustic soda was about 93 MMT (dry). The global consumption of caustic soda during the year increased to 65.8 MMT (dry), an increase of about 4.4% over the previous year.

The operating rates averaged at 71% with capacity additions in China, which led to over-supply in the Asian region.

Linear Alkyl Benzene (LAB): Globally, the consumption of LAB was pegged close to 3.1 MMTPA against a capacity of 3.5 MMTPA. On an average, the consumption growth was 2.9% per annum, and is expected to continue at this rate, driven primarily by the Asian demand.

Acrylonitrile: The global capacity of acrylonitrile in FY 2011-12 was 6.1 MMT against production of 5.2 MMT, resulting in average operating rate of 85%. The demand for the year was 5.04 MMT.

Methyl Tertiary Butyl Ether: The global capacity during the year was 17.1 MMT against a production of 14.6 MMT with operating rate of 86%. The demand for the year was 14.6 MMT.

POLYESTER FIBRE AND FILAMENT BUSINESS

OPERATING ENVIRONMENT

The unpredictable volatility in global economies impacted the textile markets and demand in major consuming economies turned cautious and slower. Many producers across the globe shifted or set up new manufacturing bases at low-cost centres, mostly in the Asian countries.

Competitiveness of the Chinese exports eroded as the Chinese government made Yuan market dominated. As a result, Yuan strengthened by 5%, while other major Asian currencies depreciated by 5-9% against the US dollar. In addition, labour costs also impacted cost structures in China.

During FY 2011-12, cotton markets continued to be an area of significant interest. Encouraged by high prices in cotton marketing year FY 2010-11, farmers planted about 8% more acres for the next season. However, at the time of the harvest, demand prospects in major consuming countries faltered. Downstream players in major processing centres across the globe lowered operating rates leading to huge stock piles. Consequently, cotton prices plunged by 10% in contrast to 100% increase witnessed in FY 2010-11. The Chinese reserve purchases by the Government were also not enough to hold up the surge in supplies in most producing countries.

The high volatility in cotton prices and ambiguous outlook forced downstream players to opt for polyester due to lesser price volatility and greater reliability of steady supplies of polyester. Consumption of polyester fibre and yarn during 2011 thus increased by 7% to 39 MMT.

During the year, polyester prices increased by 5-6% over the previous year, mainly owing to cost push from feedstock and energy. The unfriendly demand scenario kept markets unreceptive and pressure on margins increased, lowering delta by 24-30%. Producers turned cautious to keep plant operations in control to avoid piling of inventories. Polyester capacity additions were predominantly seen in PFY, accounting for about 70% of the total 4 MMT. PSF witnessed restart of some idled capacity owing to the surge in demand, arising from fluctuations in cotton prices and better margins in PSF. It is expected that by 2015 polyester capacity would increase by about 12 MMT, largely in PFY. Most of these capacity additions of about 9 MMT are planned in China. At the same time, global demand is likely to grow by 7 MMT by the same period.

PET

PET global demand growth during 2011 was at 7%. The year saw high demand created by growth in packaged drinking water. Uncertain prices encouraged buyers to scout for smaller purchase volumes at more frequent intervals with shorter delivery times to avoid inventories pile ups. This buying pattern favoured the local producers largely in USA and Europe. In addition, the depreciation of Euro during the year made imports costlier, thus promoting domestic producers. Many plants intermittently stopped their operations, which helped to keep the markets balanced in most parts of the globe and demand growth kept prices favourably high. Prices thus gained about 15% during the year.

Light-weighting and use of food grade recycled PET was common, particularly in North America and West Europe. A stronger commitment to developing technology for renewable raw materials was seen. Major beverage companies announced and developed bottles entirely from renewable sources.

FEEDSTOCK

Overall prices for polyester feedstock increased, following the strong oil prices and ethylene markets. PX was marked up by 33%, PTA by 11% and MEG by 21%. There were shortages in supplies in PX and MEG markets. With no new MEG capacity being added, the existing plants operated at almost same rates as last year and booked higher margins. MEG delta surged 17% higher over last year’s average. PTA markets, on the other hand, were hit by capacity additions of about 4 MMT during 2011. While the supplies increased, cautious downstream buying prevented large price hikes, which pressurised PTA margins and delta for the year was about 47% lower than FY 2010-11. PTA delta reached almost breakeven during the third quarter of the year, which forced many producers to shut operations to cut losses. Also the exchange rate arbitrage between Asian and European nations favoured the producers in Europe who catered to local requirements. Similar condition prevailed in USA and consequently Asian producers suffered low margins.

DOMESTIC OPERATING ENVIRONMENT

India continued to hold a crucial position in global textile industry, owing to its advantages of adequate availability of raw materials, relatively lower conversion costs, skilled manpower and favourable demographics. Cotton and polyester accounted for around 92% of the total fibre requirements of Indian textile mills.

As per government estimates, cotton and man-made fibre consumption in India is in the ratio of 59:41 as against the 40:60 ratio globally. The lower per capita fibre consumption in India of around 5 kgs as against global average of 11 kgs indicated huge potential for expansion of fibre consumption. Other major demand drivers included rising disposable income and working population, emerging non apparel applications of fibre and industry-friendly government policies. In FY 2011-12, the textile industry was impacted due to volatile cotton markets. Within a span of around 5-6 months, the international and domestic cotton prices saw historic peak and subsequently. The uptrend was primarily due to shortage of cotton availability across the world and certain government policies on cotton and cotton yarn exports, which were not receptive to textile industry growth. Consequently, the industry resorted to panic buying and stocked cotton. But, with the beginning of declining trend in cotton prices, the industry faced problems in sourcing of cotton, impacting the downstream demand as well. End-users moved into strict wait-and-watch mode and the textile industry faced huge pile-up of unused cotton and cotton yarn inventory, leading to severe stock losses. Man-made fibres, especially polyester fibre and yarn, fared relatively better as volatility in prices of polyester was much lower as compared to cotton.

Major textile production centres in Andhra Pradesh, Tamil Nadu and some Northern states faced severe power shortages, adversely affecting output and profitability of the mills. Labour shortage was also prominent during the year.

Government restrictions on raw cotton and cotton yarn exports were witnessed along with some proactive measures to assist the domestic and export community against the backdrop of weakened demand and continuous economic uncertainties from the West. Technological Upgradation Fund Scheme (TUFS) was restructured and higher allocations were provided. The high potential growth segment, technical textiles was included within its ambit. The textile ministry proposed to make TUFS a part of the Twelfth Five Year Plan beginning from April 2012. Government announced Rs. 9000.000 Millions incentives for the exporters in October 2011. The Focus Product Scheme was extended to include Polyester Textured Yarn (PTY), Fully Drawn Yarn (FDY) and polyester textile grade chips.

A Special Focus Market Scheme was introduced, which provided additional 1% duty credit for exports to specific countries. Government also scrapped the DEPB scheme and introduced Revised Duty Drawback Scheme with effect from October 01, 2011.

Government approved 21 new integrated Textile Parks in nine states of India with a project cost of Rs. 21000.000 Millions over a period of 36 months. The new Textile Parks are expected to leverage an investment of over Rs. 90000.000 Millions and generate over 0.400 Millions jobs.

MAJOR SUBSIDIARIES

India is among the largest and fastest growing major economies in the world. With demographics in India’s favour and rising aspirations, there is a strong consumption growth in physical and digital retailing. RIL’s foray, through its subsidiaries is aimed at capturing these large scale opportunities in creating unprecedented value for all its stakeholders.

RELIANCE RETAIL LIMITED

Operating Environment

The overall size of the retail industry in India is estimated at $ 470 billion. This industry is characterised by a low organized retail penetration of 6% as multiple intermediaries, including 12 million kiranas, dominate this industry (as per Technopak).

RIL’S PERFORMANCE

RIL launched Reliance Retail six years ago. Since inception, Reliance Retail has relentlessly worked towards building a services platform for supporting retail development and value creation.

During the year, Reliance Retail witnessed strong growth in sales from existing stores and also added new stores. At a consolidated level, Reliance Retail has posted revenue from operations of Rs. 75990.000 Millions for the financial year representing a growth of 25% over last year. Despite challenging macro-economic conditions most of the retail formats have delivered well over 20% same store sales growth. Same stores sales growth has been well above the growth declared by peer retailers in respective formats which indicates the robustness of the business model.

It has made significant investments in building back-end as well as front-end retail infrastructure and some of the key areas where the Company has built capabilities include:

Warehousing and logistics infrastructure: Reliance Retail has created a robust and state of the art supply chain infrastructure comprising of an integrated network of city distribution centres, regional distribution centres and import distribution centres across the country. It has also developed a robust delivery mechanism, which manages delivery from the distribution centres to over 1,300 stores.

IT infrastructure: Physical infrastructure is supported by robust technology led systems that ensures stock optimisation and provides a healthy fill rate at distribution centres and stores. Strong IT infrastructure has helped Reliance Retail to drive some of the major productivity improvement initiatives.

Human capital and talent pipeline development: Under the aegis of Reliance Retail Academy, several academies have been started to train hired staff for specific roles. Focused training programmes have been developed to improve productivity and deliver better customer experience at the store. Currently, Reliance Retail has an employee base of about 25,000 people, including store associates, corporate staff and associates in distribution centres, processing centres, collection centres and other facilities.

Front-end infrastructure development: Reliance Retail has built relationships with leading mall developers and property consultants and special efforts have been made to improve store execution timelines, to optimise capex through value engineering and indigenisation and to implement energy management and conservation efforts, while maintaining an unwavering focus on enriching the consumer experience. Reliance Retail has also invested in planning tools that have helped in achieving standardized and efficient store layouts. Standardisation in visual merchandising requirements, spanning all formats, has also helped stores to improve go-to market timelines and manage costs better.

INFOTEL BROADBAND

OPERATING ENVIRONMENT

From less than 5 million mobile users in 2001, India has grown to more than 800 million mobile users and continues to add close to 10 million new customers every month. India is now the second largest and the fastest growing telecom market in the world.

Despite the growth in telecom, India has not kept pace with the world in terms of more advanced communication technologies. Today, broadband in India only has around 1% market penetration (13 million connections) compared to the West where there is over 60% market penetration and China, which has a rapidly growing market of over 150 million broadband users.

Broadband access to the internet will fundamentally change the way Indians work, live and play. The internet provides access to millions of applications, services and content, delivering a wide array of offerings, such as email, voice and video communications, news, productivity, social networking, games, education, health and fitness, finance, travel and e-commerce. For businesses too, business to business (B-to-B) transactions can be efficiently and universally consummated via the internet, instead of point-to-point proprietary systems. Such rapid, ubiquitous and just-in-time access to relevant information has the potential to bring unprecedented efficiency to enterprise activities like manufacturing and supply chain.

RELIANCE HARYANA SEZ LIMITED

The development activity of Model Economic Township (MET) in the district of Jhajjar Haryana has begun with some of the leading Japanese multinationals undertaking the development of their industrial units. The State Government has recommended the project to be declared as a node of the Delhi Mumbai Industrial Corridor which is under consideration by appropriate authorities.

The MET has been envisioned to be developed as an industrial infrastructure to support economic growth through a JV between Reliance Ventures Limited (a subsidiary of RIL), Infrastructure Leasing and Financial Services Limited (IL and FS) in a public-private partnership framework with the Government of Haryana through HSIIDC Limited (a Government of Haryana company). Reliance Haryana SEZ Limited (RHSL), a JV of RVL and HSIIDC, will demerge the MET project at Jhajjar to enable induction of ILandFS.

INNOVATION

Innovation is ingrained in the DNA of RIL since inception. RIL has reinvented many businesses and changed the game over the last few decades. As it reaches for greater heights, the organisation will strive to institutionalize innovation as a way of life leading to innovation led growth.

A distinguished Reliance Innovation Council (RIC) comprising global thought leaders provides the vision for innovation to the organisation. Through physical meetings in India and constant deliberations with the leadership of Reliance, the council gives direction to the strategic thinking of the organisation. It is indeed an excellent opportunity to get insights and advice from Nobel Laureates and other luminaries of stature. This year the RIC was held on the 10th and 11th of February 2012. It was attended by all the RIC members. As always, break through thinking over two days with the leadership of RIL led to new direction promising path breaking outcomes. Going beyond the two day meeting, RIC members also provide on-going guidance to help shape some of the innovative technologies that are under development.

The Reliance Innovation Leadership Centre (RIL-C) which services the council, implements the innovation agenda throughout the organization. Its primary focus is to design and deploy innovation programmes that would help make RIL one of the most innovative companies in the world. The aspiration is to climb higher on this limitless ladder of excellence.

The Leading Expert Access Programme (LEAP) strives to inspire the human resource of Reliance through talks and lectures by global innovation leaders. These leaders share their work, life and experiences which leave indelible marks on the minds of their people. From Nobel Laureates to corporate leaders and from social crusaders to policy makers LEAP speakers have enthralled and inspired their people.

Some exciting initiatives addressing the creation of next businesses based on emerging technologies are showing great promise. RIL surely is well on its way in creating new exponential value through innovation led growth!

AWARDS AND RECOGNITION

Some of the major awards and recognitions conferred on RIL are as follows:

LEADERSHIP

Shri. Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited received the ‘Business Leader of the Year’ award at the Hello Hall of Fame Awards, 2011.
Shri H.S.Kohli President, Reliance Industries Limited was conferred upon with the D. M. Trivedi Life Time Achievement Award by the Indian Chemical Council (ICC) for his contribution to chemical industry.
RIL received the Euromoney Deals Award for the year 2011 for the deal between RIL and BP Plc.

CORPORATE RANKINGS AND RATINGS

RIL continues to be featured for the seventh consecutive year, in the Fortune Global 500 list of the World’s Largest Corporations and ranked 134th based on Revenues.
RIL is the only Indian company to feature in “2012 Global 100 Most Sustainable Companies of the world” by Corporate Knights.

Reliance Industries Limited (RIL) was awarded Application Level A+ certification by Global Reporting Initiative (GRI) for its FY 2010-11 Sustainability Report
“New Businesses. New Technologies. New Partnerships. (2011)”.
Boston Consulting Group and Business Week rank RIL among the top 50 innovative companies of the world.

QUALITY

Allahabad Manufacturing Division got Performance Excellence trophy from IMC Ramakrishna Bajaj National Quality Awards 2011 under the manufacturing category.
Hazira Manufacturing Division won “Silver” Award at International Convention for Quality Control Circles (ICQCC) 2011 organized by Union of Japanese Scientists and Engineers (JUSE) at Yokohama, Japan.
Hazira Manufacturing Division won the American Society for Training and Development (ASTD) Award for “TQM Training Program” with respect to RIL’s exemplary practices in work place learning and development.
Nagpur Manufacturing Division received the “International Star Award for Quality (ISAQ)” at Business Initiative Directions (BID) Convention, London.

PROJECT

Vadodara Manufacturing Division won the “Highest Par Excellence Award - 2011” for the Lean Six Sigma project from Quality Circle Forum of India (QCFI).
Patalganga Manufacturing Division bagged Six Sigma award in the category of “Best Innovative Continuous Improvement” at the Lean and Process Improvement Six Sigma Summit organized by International Quality and Productivity Center (IQPC) at Singapore.
Patalganga Manufacturing Division received the national level first prize at 5th Six Sigma Competition from CII in the category of “Best Quality improvement Project in Continuous Manufacturing Organization”.
Hazira Manufacturing Division won First and Second honours in the “Best Process Improvement Project” in manufacturing category at Lean Six Sigma and Process Improvement Summit organized by International Quality and Productivity Center (IQPC) in New Delhi.
Hazira Manufacturing Division awarded the Qualtech Award- 2011 in “Manufacturing Improvement category” at Qimpro Convention, 2011 for the Six Sigma project.

HEALTH, SAFETY AND ENVIRONMENT

RIL received the Responsible Care RC 14001 certification (as per American Chemistry Council specification) issued by M/s DNV and registered at the American National Accreditation Board (ANAB), USA.
Allahabad Manufacturing Division received the Gold Award in Textile sector for outstanding achievement in safety management from Greentech Foundation.
Barabanki Manufacturing Division received the Five Star certification from British Safety Council in 2011.
Hazira Manufacturing Division won American Society for Training and Development (ASTD) Award for “Safety and Operational Training for Employees and Contractors”.
Jamnagar DTA Refinery received the British Safety Council Five Star Certification in Occupational Health and Safety Management.
Jamnagar DTA Refinery was honoured with the Five Star Award for Health and Safety Management by the British Safety Council, UK.
The Jamnagar SEZ Refinery received the Five Star Award for Environment Management System by the British Safety Council, UK.
Jamnagar SEZ Refinery awarded 10th Annual Greentech Safety Award 2011 in Platinum Category in Petroleum Refinery sector, for the outstanding achievement in Safety Management.
Jamnagar SEZ Refinery received Srishti’s ‘G-Cube Award-2010’ for ‘Good, Green, Governance’.
Both, DTA and SEZ refineries at Jamnagar were awarded with Safety Innovation Award 2011 from Institution of Engineers, New Delhi for implementation of Innovative Safety Management System.
Jamnagar SEZ Refinery received the Golden Peacock Environment Management Award for the year 2011 from GPA Secretariat, New Delhi.
Naroda Manufacturing Division received the British Safety Council Five Star Certification on Environment.
Vadodara Manufacturing Division received the CII Environment Best Practices Award 2012 for “Most Innovative Environmental Project”.
KG-D6 operations were given Five Star Safety Rating by the British Safety Council, UK in recognition of good safety practices.
KG-D6 operations are selected for the Best Processing Plant by the Oil Industry Safety Directorate, Ministry of Petroleum and Natural Gas (MoPNG).
KG-D6 operations were awarded the British Safety Council – Sword of Honour towards best safety performance.

ENERGY AND WATER CONSERVATION / EFFICIENCY

Hazira Manufacturing Division won the First Prize in “National Energy Conservation Award 2011” in the Petrochemical sector awarded by Ministry of Power.
Hazira Manufacturing Division won the “Excellent Energy Efficient Unit Award” for FY 2010-11 during the Energy Summit organized by CII for the 8^th consecutive time.
Jamnagar DTA Refinery received the CII Excellent Energy Efficient Unit Award for 2011.
Jawaharlal Nehru Centenary Award for specific energy consumption from Centre for High Technology (CHT), Ministry of Petroleum and Natural Gas (MoPNG) was received by Jamnagar DTA Refinery.
Jamnagar SEZ Refinery received the National Energy Conservation award 2011, from Bureau of Energy Efficiency, Ministry of Power.
Reliance Corporate IT Park, Navi Mumbai received the 1st prize at 7th Maharashtra State level Energy Conservation Award for the year 2009-10 in Commercial Building Category.

TECHNOLOGY, PATENTS, R AND D AND INNOVATION

RTG received National Technology Award for in house technology development in polypropylene catalyst.
RTG scientists have received the Vividhlaxi Audyogik Samshodhan Vikas Kendra (VASVIK) Award.
RTG received the “NOCIL award for excellence in design or development of process plant and equipment” and “Eminent Chemical Engineer Award” from the Indian Institute of Chemical Engineers (IIChE)
Hazira Manufacturing Division won the Golden Peacock Eco-Innovation Award for 2011 in Petrochemical sector, awarded by World Environment Foundation (WEF) in association with Institute of Directors (IOD).
Hazira Manufacturing Division won the National Award 2011 for successful commercialization of indigenous technology from Ministry of Science and Technology.

CORPORATE SOCIAL RESPONSIBILITY

Dahej Manufacturing Site received the 2nd Annual Greentech HR Gold Award 2012 in Training Excellence.
RIL inducted into Palladium Balanced Scorecard Hall of Fame for Executing Technology having achieved execution excellence through use of Balanced Scorecard.
Hazira Manufacturing Division won the Golden Peacock National HR Excellence Award-2011 in Petrochemical sector.
Hazira Manufacturing Division won the Golden Peacock Global Award for CSR 2011 in Petrochemical sector.
RIL Group Manufacturing Services (GMS) received the American Society for Training and Development (ASTD) Best Award, 2011 for workplace learning and Performance.

RETAIL

Reliance Trends received the ‘Retail Marketing Campaign of the Year Award’ at the Asia Retail Congress 2011.
Reliance Trends received the ‘Innovative Retail Concept Award for Performax’ at the Asia Retail Congress 2011.
Reliance Trends received the ‘Retailer of the Year 2011 Award’ for the ‘Fashion and Lifestyle’ category at the Asia Retail Congress 2011.
Reliance Trends received the ‘Most Admired Retailer of Store Brands Award’ under the ‘Apparel and Clothing’ category at the Primal Label Forum, 2011.

SUSTAINABILITY

RIL won the prestigious National Golden Peacock Award 2011 for its outstanding contribution in the field of corporate sustainability.
Hazira Manufacturing Division won the prestigious CII-ITC Sustainability Award for the year 2011 for its strong commitment towards sustainable excellence.

Fixed Assets

· Leasehold Land

· Freehold Land

· Building

· Plant and Machinery

· Electrical Installations

· Equipments

· Furniture and Fixture

· Vehicles

· Aircraft and Helicopter

· Ship

· Software

CONTINGENT LIABILITIES

Particulars	31.03.2012 (Rs in Millions)	31.03.2011 (Rs in Millions)
(I) Contingent Liabilities
(A) Claims against the company / disputed liabilities not acknowledged as debts
(a) In respect of joint ventures	--	--
(b) In respect of others	13430.000	16170.000
(B) Guarantees
(i) Guarantees to Banks and Financial Institutions against credit facilities extended to third parties
(a) In respect of joint ventures	--	--
(b) In respect of others	295830.000	216380.000
(ii) Performance Guarantees
(a) In respect of joint ventures	--	--
(b) In respect of others	1590.000	2360.000
(iii) Outstanding guarantees furnished to Banks and Financial Institutions including in respect of Letters of Credits
(a) In respect of joint ventures	2280.000	240.000
(b) In respect of others	51670.000	34730.000
(C) Other Money for which the company is contingently liable
(i) Liability in respect of bills discounted with Banks (Including third party bills discounting)
(a) In respect of joint ventures	--	--
(b) In respect of others	6310.000	22960.000

UNAUDITED SEGMENT INFORMATION FOR THE QUARTER ENDED 30^TH JUNE 2012

				Rs in Millions
	Particulars			Quarter ended
				30.06.2012
				(Unaudited)
1	Net Sales/Income from Operations			918750.000
2	Other Operating Income			0.000
3	Total Income from operations (1+2)			918750.000
4	Expenditure
	(a)		Cost Material consumed	793350.000
	(b)		Purchase of traded goods	1630.000
	©		Changes in inventories of finished goods and works-in-process	(9870.000)
	(d)		Employee benefits expense	8470.000
	(e)		Depreciation	24340.000
	(f )		Other Expenditure	57700.000
			Total Expenses	875620.000
5			Profit from Operations before Other Income, financial costs and exceptional item	43130.000
6			Other Income	19040.000
7			Profit before ordinary activities before finance costs	62170.000
8	Financial Costs			7840.000
9	Profit FROM ordinary activities before TAX			54330.000
12	Tax Expenses			9600.000
13	Net Profit after tax			44730.000
16	Paid up equity share capital (Face value per share of Rs.10/- each)			32420.000
18		Earning Per Share (not annualised) Basic and Diluted		13.7
19		Public Shareholding
		Number of Shares		1778.600
		Percentage of Shareholding		548.500
20		Promoters and Promoter group
		a) Pledged/Encumbered
		Number of shares		--
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		--
		Percentage of Shares (as a % of the total share capital of the Company)		--
		b) Non-encumbered
		Number of shares		1463.900
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		100
		Percentage of Shares (as a % of the total share capital of the Company)		45.15

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.5170.000 Millions ($ 93 million) for the quarter ended 30th June 2012 which has been withdrawn from the Reserves. This has no impact on the profit for the quarter ended 30th June 2012.

3. During the quarter, Company has bought and extinguished 2,85,85,061 equity shares. Consequently a sum of Rs. 290.000 Millions has been appropriated to Capital Redemption Reserve Account from Profit and Loss account and Rs. 19980.000 Millions has been reduced from Securities Premium Reserve.

4. Reliance Jamnagar Infrastructure Limited, a wholly owned subsidiary of the Company has filed, on 26th March 2012, with the Hon’ble High Court of Gujarat at Ahmedabad for amalgamation with the Company. The scheme shall be given effect to in the books with effect from the appointed date of 1st April, 2011, upon receipt of necessary approvals.

5. The Government of India, by its letter of 02 May 2012 has communicated that it proposes to disallow certain costs which the PSC relating to Block KG-DWN-98/3 entitles RIL to recover. RIL continues to maintain that a Contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that entitle the Government to disallow the recovery of any Contract Cost as defined in the PSC. The company has already initiated arbitration on the above issue.

6. There were no investors’ complaints pending as on 1st April 2012. All the 423 complaints received during the quarter ended 30th June 2012 were resolved and no complaints were outstanding as on 30th June 2012.

7. The audit committee reviewed the above results. The Board of Directors at its meeting held on 20th July 2012 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 2012.

UNAUDITED SEGMENT INFORMATION FOR THE QUARTER ENDED 30th June 2012

			Rs in Millions
	Particulars		Quarter ended
			30.06.2012
			(audited)
	Segment Revenue
	-Petrochemicals		218390.000
	-Refining		853830.000
	-Oil and Gas		25080.000
	-Others		2480.000
	Gross Turnover (Turnover and Inter Segment Transfers)		1099780.000
	Less: Inter Segment Transfers		150520.000
	Turnover		949260.000
	Less: Excise Duty / Service Tax Recovered		30510.000
	Net Turnover		918750.000
	Segment Results
	- Petrochemicals		17560.000
	- Refining		21510.000
	- Oil and Gas		9720.000
	- Others		10.000
	Total Segment Profit before Interest and Tax		48800.000
	(i) Interest Expense		(7840.000)
	(ii) Interest Income		12910.000
	(iii) Other Un-allocable Income Net of Expenditure		460.000
	Profit before Tax		54330.000
	(i) Provision for Current Tax		(10820.000)
	(ii) Provision for Deferred Tax		1220.000
	Profit after Tax		44730.000
	Capital Employed
	(Segment Assets - Segment Liabilities)
	- Petrochemicals		332630.000
	- Refining		724420.000
	- Oil and Gas		307460.000
	- Others		153510.000
	- Unallocated Corporate		1014370.000
	Total Capital Employed		2532390.000

Notes to Segment Information for the Quarter Ended 30th June 2012

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 density Polyethylene, Low density Polyethylene, Linear Low density Polyethylene, Polypropylene, Polyvinyl Chloride, Polyester Yarn, Polyester Fibres, Purified Terephthalic Acid, Paraxylene, Ethylene Glycol, Olefins, Aromatics, Linear Alkyl Benzene, Butadiene, Acrylonitrile, Poly Butadiene Rubber, 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”

PRESS RELEASE:

.CONSTRUCTION BEGINS ON RSEPL BUTYL RUBBER PLANT

Jamnagar (India), 22 February 2013: Reliance Sibur Elastomers Private Limited (RSEPL), a joint venture between Reliance Industries Limited and SIBUR today began construction of their new butyl rubber plant, in Jamnagar.

The ceremony was attended by SIBUR’s CEO, Dmitry Konov; Mr. Alexy V Novikov, Consul General; Mr. Nikhil Meswani, Executive Director of Reliance and senior members of SIBUR, Reliance, and public officials.

Commenting on the event, Mr. Nikhil Meswani, Executive Director, RIL, said “Reliance is excited to join a select group of global Butyl Rubber producers. India, as a fast emerging auto hub, is a vast market for these products. We look forward to serving this market.”

Dmitry Konov commented, “India is one of the most attractive petrochemicals markets right now due to the significant investment in infrastructure which has spurred demand. SIBUR’s technologies together with Reliance’s infrastructure and resources will help to establish a facility that will meet the demand for butyl rubber in Asian market.”

When commissioned in 2015, the new plant will be India’s only manufacturer of butyl rubber and the JV will be amongst the world’s top five manufacturers of butyl rubber.

RIL and SIBUR signed a technology licence agreement facilitating use of SIBUR's proprietary butyl rubber production technology at the new facility. The licensing package includes development of a Basic Engineering Package (BEP) and full-time provision of highly-experienced technical personnel on both project and operational stages. RIL will supply monomer and provide the JV with world-class infrastructure and utilities.

The project is progressing as per the original schedule. The BEP has already been completed in Nov 2012, and Detailed Engineering is underway. At present, RSEPL is placing orders for long-lead equipment. When complete, the Jamnagar plant will have the capacity to produce 100,000 tonnes annually.

Reliance has already started market seeding butyl rubber from SIBUR in India. The response is very encouraging.

BACKGROUND INFORMATION

Reliance Sibur Elastomers Private Limited is a JV formed between SIBUR and Reliance Industries Limited (RIL) in February 2012 to produce 100,000 tonnes of butyl rubber per year at Reliance’s integrated petrochemical site in Jamnagar, India. Reliance Industries Limited owns 74.9% of the JV and SIBUR 25.1%.

SIBUR is a uniquely positioned gas processing and petrochemicals company with a business model focused on the integrated operation of its two core segments. The Group owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, according to IHS CERA and is a leader in the Russian petrochemicals industry. The Group has two operating and reportable segments: feedstock and energy and petrochemicals. The Group’s feedstock and energy segment comprises (i) gathering and processing of associated petroleum gas (APG) that the Group purchases from major Russian oil companies, (ii) transportation, fractionation and other processing of natural gas liquids (NGLs) that the Group produces internally or purchases from major Russian oil and gas companies, and (iii) marketing and sales of energy products, such as natural gas, liquefied petroleum gases (LPG), naphtha, raw NGL, methyl tertiary butyl ether and other fuels and fuel additives.

The Group sells these energy products on the Russian and international markets and uses some of them as feedstock for its petrochemicals segment, which processes them into various petrochemicals, including basic polymers, synthetic rubbers, plastics and products of organic synthesis, as well as intermediates and other chemicals.

Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with a turnover of INR 3397920.000 Millions (US$ 66.8 billion), cash profit of INR 319940.000 Millions (US$ 6.3 billion) and net profit of INR 200400.000 Millions (US$ 3.9 billion) as of March 31, 2012.

RIL is the first private sector company from India to feature in Fortune’s Global 500 list of 'World's Largest Corporations' and ‘World’s Top 100 companies’, ranking 99th in terms of revenues and 130th in terms of profits in 2012. RIL ranks 68th in the Financial Times’ FT Global 500 list of the world's largest companies. RIL is ranked amongst the ’50 Most Innovative Companies - 2010' in the World in a survey conducted by the US financial publication - Business Week in collaboration with the Boston Consulting Group (BCG). In 2010, BCG also ranked RIL as the second highest ‘Sustainable Value Creators’ for creating the most shareholder value over the decade in the world.

PLANNED MAINTENANCE TURNAROUND AT JAMNAGAR REFINERY COMPLEX

Mumbai, February 11, 2013: The Company has scheduled a planned maintenance turnaround of one crude distillation unit of its SEZ refinery at Jamnagar Complex for a period of approximately 4 weeks starting February 18, 2013. This opportunity would also be utilized to carry out necessary modifications to improve the reliability and performance of the unit.

During the same period, one VGO & Diesel Hydrotreater unit are also planned for routine catalyst replacement.

Balance three crude distillation units in addition to all secondary processing units are expected to sustain normal operations.

About RIL

Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with a turnover of INR 3397920.000 Millions (US$ 66.8 billion), cash profit of INR 319940.000 Millions (US$ 6.3 billion) and net profit of INR 200400.000 Millions (US$ 3.9 billion) as of March 31, 2012.

RIL is the first private sector company from India to feature in Fortune’s Global 500 list of 'World's Largest Corporations' and ‘World’s Top 100 companies’, ranking 99th in terms of revenues and 130^th in terms of profits in 2012. RIL ranks 68th in the Financial Times’ FT Global 500 list of the world's largest companies. RIL is ranked amongst the ’50 Most Innovative Companies - 2010' in the World in a survey conducted by the US financial publication - Business Week in collaboration with the Boston Consulting Group (BCG). In 2010, BCG also ranked RIL as the second highest ‘Sustainable Value Creators’ for creating the most shareholder value over the decade in the world.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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.
UK Pound	1	Rs.
Euro	1	Rs.

INFORMATION DETAILS

Report Prepared by :

TPT

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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

International Accountants:

359550.000

184240.000

395980.000

2490.000

254290.000

1196550.000

11890.000

528480.000

42580.000

582950.000

613600.000

5.96

7.81

10.84

0.16

0.78

2.05

Unit