MIRA
INFORM REPORT
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Report Date : |
22.07.2013 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE INDUSTRIES LIMITED |
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Registered
Office : |
3rd Floor, Maker Chamber IV, 222, Nariman Point, Mumbai – 400021, |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
08.05.1973 |
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Com. Reg. No.: |
11-019786 |
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Capital
Investment / Paid-up Capital : |
Rs.32290.000 Millions |
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CIN No.: [Company Identification No.] |
L17110MH1973PLC019786 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMRO9795C MUMR00462A |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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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. |
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No. of Employees
: |
23519 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (80) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
Large |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a
well-established and a reputed company having excellent track. The group’s
activities include 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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
AAA (Long Term Rating) |
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Rating Explanation |
Highest degree of safety and lowest credit
risk. |
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Date |
July 10, 2013 |
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Rating Agency Name |
CARE |
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Rating |
A1+ (Short Term Rating) |
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Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
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Date |
July 10, 2013 |
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
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Registered
Office/ Corporate
Office : |
3rd Floor,
Maker Chambers IV, 222, Nariman Point, Mumbai – 400021, |
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Tel. No.: |
91-22-30325000 / 30327000 / 22785000 / 22785185 |
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Fax No.: |
91-22-22785111 /
30322268 / 22785185 |
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E-Mail : |
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Website : |
http://www.ril.com |
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Head Office : |
Reliance Corporate Park, Building No. 7, C-Wing, 2nd Floor, 5, TTC Industrial Area, Thane-Belapur Road, Ghansoli, Navi Mumbai – 400701, Maharashtra, India |
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Tel. No.: |
91-22-44780912 |
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Fax No.: |
91-22-44779050 |
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E-Mail : |
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Factory : |
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, Hazira Complex Village Mora, Nagothane Complex Patalganga
Complex B-4, Industrial
Area, P.O. Rasauani, Patalganga, Near Panvel, District Raigad - 410207, Vadodara Complex P. O.
Petrochemicals, Vadodara - 391 346, Gadimoga Tallarevu
Mandal, East Godavari District, Gadimoga – 533463, Village Meghpar
/ Padana, Taluka Lalpur, Hoshiarpur Dharmshala Road,
V.P.O. Chohal District Hoshiarpur - 146 024, Punjab, India Village Dahali, Naroda 103/106, Naroda
Industrial Estate Naroda, Ahmedabad - 382 330, Silvassa 342, Kharadpada,
Naroli, Near Silvassa Union Territory of Dadra and Nagar Haveli – 396235,
India |
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Factory 2: |
Unit of Reliance Jamnagar Sez Polymer Export Division Fortune 2000 5th
Floor C – 3 G Block Bkc Bandra (East) Mumbai – 400051, Maharashtra, India |
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Corporate
Communication Center : |
Maker Chambers
IV, 1st Floor, Nariman Point, Mumbai – 400021, |
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Tel No. : |
91-22-22785568 /
22785585 / 22785000 |
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Fax No. : |
91-22-22785185 |
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Email : |
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Web Site: |
DIRECTORS
As on: 31.03.2013
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Name : |
Mr. Mukesh D.
Ambani |
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Designation : |
Chairman and Managing Director |
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Date of
Appointment: |
31.07.2002 |
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Qualification: |
Chemical Engineer from |
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Name : |
Mr. Nikhil R.
Meswani |
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Designation : |
Executive Director |
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Appointment: |
Since 1990 |
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Qualification: |
Chemical Engineer |
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Name : |
Mr. Hital R.
Meswani |
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Designation : |
Executive Director |
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Name : |
Mr. P.M.S.
Prasad |
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Designation : |
Executive Director |
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Name : |
Mr. Pawan Kumar Kapil |
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Designation : |
Executive Director |
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Name : |
Mr. Ramiklal H.
Ambani |
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Designation : |
Non Executive Director |
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Name : |
Mr. Mansingh L.
Bhakta |
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Designation : |
Non Executive Director |
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Name : |
Mr. Yogendra P.
Trivedi |
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Designation : |
Non Executive Director |
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Name : |
Dr. Dharam Vir Kapur |
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Designation : |
Non Executive Director |
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Name : |
Mr. Mahesh P.
Modi |
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Designation : |
Non Executive Director |
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Name : |
Prof. Ashok Mishra |
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Designation : |
Non Executive Director |
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Name : |
Prof. Dipak C. Jain |
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Designation : |
Non Executive Director |
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Name : |
Dr. Raghunath A. Mashelkar |
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Designation : |
Director |
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Date of
Appointment : |
09.06.2007 |
KEY EXECUTIVES
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Name : |
Mr. K. Sethuraman |
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Designation : |
Group Company Secretary and Chief Compliance Officer |
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Name : |
Mr. Kanga and Company |
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Designation : |
Solicitors and Advocates |
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Audit Committee
: |
Mr. Yogendra P.
Trivedi (Chairman) |
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Mr. Mahesh P.
Modi |
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Dr. Raghunath A. Mashelkar |
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Corporate
Governance and Stakeholders' Interface Committee : |
Mr. Yogendra P.
Trivedi (Chairman) |
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Mr. Mahesh P.
Modi |
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Dr. Dharam Vir
Kapur |
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Employees Stock Compensation
Committee : |
Mr. Yogendra P.
Trivedi (Chairman) |
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Mr. Mukesh D.
Ambani |
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Mr. Mahesh P.
Modi |
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Prof. Dipak C.
Jain |
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Finance
Committee : |
Mr. Mukesh D.
Ambani (Chairman) |
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Mr. Nikhil R.
Meswani |
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Mr. Hital R.
Meswani |
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Health, Safety
and Environment
Committee : |
Mr. Hital R.
Meswani (Chairman) |
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Dr. Dharam Vir
Kapur |
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Mr. P.M.S.
Prasad |
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Mr. Pawan Kumar
Kapil |
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Remuneration
Committee : |
Mr. Mansingh L.
Bhakta (Chairman) |
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Mr. Yogendra P. Trivedi |
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Dr. Dharam Vir
Kapur |
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Dr. Raghunath A. Mashelkar |
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Shareholders'/Investors' Grievance
Committee : |
Mr. Mansingh L.
Bhakta (Chairman) |
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Mr. Yogendra P.
Trivedi |
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Mr. Nikhil R.
Meswani |
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Mr. Hital R.
Meswani |
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Prof. Ashok Misra |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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(1) Indian |
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21172646 |
0.68 |
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1322298328 |
42.42 |
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120471003 |
3.87 |
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120471003 |
3.87 |
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1463941977 |
46.97 |
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Total shareholding
of Promoter and Promoter Group (A) |
1463941977 |
46.97 |
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(B) Public
Shareholding |
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|
69597036 |
2.23 |
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|
4449175 |
0.14 |
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3198144 |
0.10 |
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297021647 |
9.53 |
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560181229 |
17.97 |
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5 |
0.00 |
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934447236 |
29.98 |
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|
148972038 |
4.78 |
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340311509 |
10.92 |
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25294213 |
0.81 |
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203973008 |
6.54 |
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21360330 |
0.69 |
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4453754 |
0.14 |
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171883624 |
5.51 |
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6275300 |
0.20 |
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718550768 |
23.05 |
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Total Public
shareholding (B) |
1652998004 |
53.03 |
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Total (A)+(B) |
3116939981 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
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0 |
0.00 |
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|
112493092 |
0.00 |
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112493092 |
0.00 |
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Total (A)+(B)+(C) |
3229433073 |
0.00 |
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%2022-Jul-2013_files/image004.gif){kind=small}
BUSINESS DETAILS
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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. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
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Refining of Crude
Oil |
|
N.A. |
60 |
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Ethylene |
MT |
N.A. |
1883400 |
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Propylene |
MT |
N.A. |
759800 |
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Benzene |
MT |
N.A. |
730000 |
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Toluene |
MT |
N.A. |
197000 |
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Xylene |
MT |
N.A. |
165000 |
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Hydro Cynic Acid ' |
MT |
3600 |
3600 |
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Ethane Propane
Mix |
MT |
N.A. |
450000 |
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Caustic Soda Lye
/ Flakes |
MT |
N.A. |
168000 |
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Chlorine |
MT |
N.A. |
141200 |
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Acrylonitrile |
MT |
N.A. |
41000 |
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Linear Alkyl
Benzene |
MT |
N.A. |
182400 |
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Butadiene and
Other C4s |
MT |
N.A. |
419000 |
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Cyclohexane |
MT |
N.A. |
40000 |
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Paraxylene |
MT |
N.A. |
1856000 |
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Orthoxylene |
MT |
N.A. |
420000 |
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Toluole |
MT |
N.A. |
180000 |
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Poly Vinyl
Chloride |
MT |
N.A. |
625000 |
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High / Linear
Low Density Poly Ethylene |
MT |
N.A. |
11175000 |
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High Density
Polyethylene Pipes |
MT |
N.A. |
80000 |
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Poly Butadiene
Rubber |
MT |
N.A. |
74000 |
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Polypropylene |
MT |
N.A. |
2685200 |
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Mono Ethylene
Glycol |
MT |
N.A. |
733400 |
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Higher Ethylene
Glycol |
MT |
N.A. |
52080 |
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Ethylene Oxide |
MT |
N.A. |
116000 |
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Purified
Terephthalic Acid |
MT |
N.A. |
2050000 |
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Polyester Filament
Yam / Polyester Chips |
MT |
N.A. |
822725+ |
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Polyester Staple
Fibre / Acrylic Fibre / Chips |
MT |
N.A. |
741612 |
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Poly Ethylene
Terephthalate |
MT |
N.A. |
290,000 |
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Polyester Staple
Fibre Fill |
MT |
N.A. |
42,000 |
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Man-made Fibre Spun
Yarn on worsted system |
Nos |
N.A. |
24,094 |
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Man-made fibre
on cotton system (Spindles) |
Nos |
N.A. |
23,040 |
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Man-made Fabrics
(Looms) |
Nos |
N.A. |
263 |
|
Knitting M/C |
Nos |
22 |
20 |
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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 |
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Gas |
BBTU |
564312 |
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Petroleum Products |
‘000 MT |
51525 |
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Ethylene |
MT |
27 |
|
Propylene |
MT |
6895 |
|
Benzene |
MT |
605200 |
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Toluene |
MT |
102036 |
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Caustic Soda lye / Flakes |
MT |
128631 |
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Acrylonitrile |
MT |
37608 |
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Linear Alkyl Benzene |
MT |
162667 |
|
Butadiene |
MT |
96158 |
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Cyclohexane |
MT |
46195 |
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Paraxylene |
MT |
486896 |
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Orthoxylene |
MT |
399831 |
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Poly Vinyl Chloride |
MT |
630780 |
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Polyethylene |
MT |
970017 |
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High Density Polyethylene Pipes
|
Mtrs. In lacs |
93 |
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Poly Butadiene Rubber |
MT |
75261 |
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Polypropylene |
MT |
2496099 |
|
Ethylene Glycol |
MT |
265244 |
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Purified Terephthalic Acid |
MT |
622097 |
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Polyester Filament Yarn |
MT |
810433 |
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Polyester Staple Fibre |
MT |
631023 |
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Poly Ethylene Terephthalate |
MT |
352668 |
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Polyester Staple Fibre Fill |
MT |
69614 |
|
Fabrics |
Mtrs. in Lacs |
180 |
GENERAL INFORMATION
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No. of Employees : |
23519 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
Notes: 1. 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 units) of the Company. b) Rs. 25000.000 Millions are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar Complex (other than SEZ units) of the Company. c) Rs. 13000.000 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. 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. e) Rs. 300.000 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. f) 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. g) Rs. 5000.000 Millions are secured by way of first mortgage / charge on the immovable properties situated at Jamnagar Complex (SEZ unit) of the Company. 2. Bonds include, 5.875% Senior Perpetual Notes (the “Notes”) of Rs. 43430.000 Millions. The notes have no fixed maturity date and the Company will have an option, from time to time, to redeem the Notes, in whole or in part, on any semiannual interest payment date on or after February 5, 2018 at 100% of the principal amount plus accrued interest. 3. Working capital loans are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares (not relating to plant and machinery), book debts, outstanding monies, receivables, claims, bills, materials in transit, etc. save and except receivables of Oil and Gas Division. |
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Banking
Relations : |
-- |
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Auditors 1 : |
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Name : |
Chaturvedi and Shah Chartered Accountants |
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Auditors 2 : |
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Name : |
Rajendra and Company Chartered Accountants |
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Auditors 3 : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Subsidiary
Companies : |
· Reliance Industrial Investments and Holdings Limited · Subsidiary Companies · Reliance Ventures Limited · Reliance Strategic Investments Limited · Reliance Industries (Middle East) DMCC · Reliance Retail Limited · Reliance Netherlands B.V. (Liquidated on 27th March, 2013) · Reliance Haryana SEZ Limited · Reliance Fresh Limited · Retail Concepts and Services (India) Limited · Reliance Retail Insurance Broking Limited · Reliance Dairy Foods Limited · Reliance Exploration & 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 · 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 Payment Solutions Limited · Reliance Brands Limited · Reliance Footprint Limited · Reliance Trends Limited · Reliance Lifestyle Holdings Limited · Reliance Universal Ventures Limited · Delight Proteins Limited · Reliance Autozone Limited · Reliance F andB 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 · Kanhatech Solutions 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 · Reliance Review Cinema Limited · Reliance Replay Gaming Limited · Two sisters Foods India Limited · International Oil Trading Limited (Liquidated on 7th February 2013) · 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 · Indiawin Sports Private Limited · Reliance Holding USA Inc. · Reliance Marcellus LLC · Reliance Jio Infocomm 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 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 · Surela Investment and Trading Private Limited · Model Economic Township Limited · Delta Corp East Africa Limited · Delta Square Limited · Kaizen Capital LLP · Affinity Names Inc · Reliance USA Gas Marketing LLC · Reliance Aerospace Technologies Limited · Reliance Gas Pipelines Limited · Achman Commercial Private Limited · Reliance Jio Infocomm Pte Limited · Reliance do Brasil Industria e Comercio de Produtos Texteis, · Quimicos, Petroquimicos e Derivados Ltda. · Reliance Hyper Realty Limited (amalgamated with Reliance Commercial Land and Infrastructure Limited w.e.f. 01.04.2012) · Reliance Commercial Realty Assets Limited (amalgamated with Reliance Commercial Land and Infrastructure Limited w.e.f. 01.04.2012) · Reliance Oil and Gas Mauritius Limited (amalgamated with Reliance Energy Generation and Distribution Limited w.e.f. 01.04.2012) · Reliance Exploration and Production Mauritius Limited (amalgamated with Reliance Energy Generation and Distribution Limited w.e.f. 01.04.2012) |
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Associates : |
·
Reliance Industrial Infrastructure Limited ·
Reliance Europe Limited ·
Reliance LNG Limited ·
Indian Vaccines Corporation Limited ·
Gujarat Chemical Port Terminal Company Limited ·
Reliance Utilities and Power Private Limited ·
Reliance Utilities Private Limited ·
Reliance Ports and Terminals Limited ·
Reliance Gas Transportation Infrastructure
Limited ·
Reliance Commercial Dealers 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: 31.03.2013
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 |
|
|
|
|
|
|
|
Total |
|
Rs.60000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3228663382 |
Equity Shares |
Rs.10/- each |
Rs.32290.000 Millions |
|
|
|
|
|
1. 162,67,93,078 (162,67,93,078) Shares were allotted as Bonus Shares in the last five years by capitalisation of Securities Premium and Reserves.
2. 6,92,52,623 (12,93,93,183) Shares 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 (45,04,27,345) Shares 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 (17,18,83,624) Shares held by Subsidiaries do not have voting rights and are not eligible for Bonus Shares
5. 4,62,46,280 (36,63,431) Shares were bought back and extinguished in the last five years.
6. The details of
Shareholders holding more than 5% shares:
|
Name of the
Shareholder |
As at 31st March, 2013 |
|
|
|
No. of Shares |
% held |
|
Life Insurance Corporation of India |
257759467 |
7.98 |
7. The reconciliation
of the number of shares outstanding is set out below:
|
Particulars |
As at 31st March, 2013 |
|
Equity Shares at the beginning of the year |
3271059340 |
|
Add : Shares issued on exercise of employee stock options |
186891 |
|
Less : Shares cancelled on buy back of Equity Shares |
42582849 |
|
Equity Shares at the end of the year |
3228663382 |
8. The Company has reserved issuance of 13,37,43,590 (Previous year 13,39,30,481) 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 not granted any options to the eligible employees [Previous year 68,817 options, 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 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.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
32290.000 |
32710.000 |
32730.000 |
|
(b) Reserves & Surplus |
1767660.000 |
1628250.000 |
1482670.000 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
250.000 |
0.000 |
90.000 |
|
Total Shareholders’
Funds (1) + (2) |
1800200.000 |
1660960.000 |
1515490.000 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
430120.000 |
480340.000 |
511240.000 |
|
(b) Deferred tax liabilities (Net) |
121930.000 |
121220.000 |
115620.000 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
552050.000 |
601560.000 |
626860.000 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
115110.000 |
105930.000 |
123040.000 |
|
(b) Trade payables |
457870.000 |
403240.000 |
348440.000 |
|
(c) Other current liabilities |
216400.000 |
137130.000 |
187350.000 |
|
(d) Short-term provisions |
43480.000 |
42580.000 |
46010.000 |
|
Total Current
Liabilities (4) |
832860.000 |
688880.000 |
704840.000 |
|
|
|
|
|
|
TOTAL |
3185110.000 |
2951400.000 |
2847190.000 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
829620.000 |
880010.000 |
930840.000 |
|
(ii) Intangible Assets |
267860.000 |
257220.000 |
496230.000 |
|
(iii) Capital work-in-progress |
135250.000 |
36950.000 |
27590.000 |
|
(iv) Intangible assets under development |
55910.000 |
40590.000 |
94690.000 |
|
(b) Non-current Investments |
241430.000 |
269790.000 |
232090.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
215280.000 |
143400.000 |
106980.000 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
1745350.000 |
1627960.000 |
1888420.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
283660.000 |
270290.000 |
144430.000 |
|
(b) Inventories |
427290.000 |
359550.000 |
298250.000 |
|
(c) Trade receivables |
118800.000 |
184240.000 |
174420.000 |
|
(d) Cash and cash equivalents |
495470.000 |
395980.000 |
271350.000 |
|
(e) Short-term loans and advances |
109740.000 |
110890.000 |
68330.000 |
|
(f) Other current assets |
4800.000 |
2490.000 |
1990.000 |
|
Total Current
Assets |
1439760.000 |
1323440.000 |
958770.000 |
|
|
|
|
|
|
TOTAL |
3185110.000 |
2951400.000 |
2847190.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3602970.000 |
3299040.000 |
2481700.000 |
|
|
|
Other Income |
79980.000 |
61920.000 |
30520.000 |
|
|
|
TOTAL (A) |
3682950.000 |
3360960.000 |
2512220.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3061270.000 |
2748140.000 |
1932340.000 |
|
|
|
Purchases of stock-in-trade |
5020.000 |
14410.000 |
14640.000 |
|
|
|
Changes in inventories of finished goods, stock-in-process and stock-in-trade |
(33170.000) |
(8720.000) |
(32430.000) |
|
|
|
Employee benefits expense |
33540.000 |
28620.000 |
26240.000 |
|
|
|
Other expenses |
228440.000 |
180400.000 |
159650.000 |
|
|
|
TOTAL (B) |
3295100.000 |
2962850.000 |
2100440.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
387850.000 |
398110.000 |
411780.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
30360.000 |
26670.000 |
23280.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
357490.000 |
371440.000 |
388500.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
94650.000 |
113940.000 |
136080.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
262840.000 |
257500.000 |
252420.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
52810.000 |
57100.00 |
49560.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
210030.000 |
200400.000 |
202860.000 |
|
|
|
|
|
|
|
|
|
Add |
On Amalgamation |
11160.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
76090.000 |
65140.000 |
50000.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to General Reserve |
180000.000 |
160000.000 |
160000.000 |
|
|
|
Transferred to Capital Redemption Reserve on buy back of Equity Shares |
430.000 |
40.000 |
0.000 |
|
|
|
Proposed Dividend on Equity Shares |
26280.000 |
25310.000 |
23850.000 |
|
|
|
Tax on Dividend |
4470.000 |
4100.000 |
3870.000 |
|
|
BALANCE CARRIED
TO THE B/S |
86100.000 |
76090.000 |
65140.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value for Exports |
2278830.000 |
1982690.000 |
1405461.500 |
|
|
|
Interest Earnings |
20.000 |
10.000 |
69.800 |
|
|
|
Other Earnings |
2070.000 |
2040.000 |
44.800 |
|
|
TOTAL EARNINGS |
2280920.000 |
1984740.000 |
1405576.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Stock-in-Trade |
2817190.000 |
2542480.000 |
1749143.900 |
|
|
|
Stores, Chemicals and Packing Materials |
32600.000 |
31200.000 |
20505.000 |
|
|
|
Capital goods |
22040.000 |
3250.000 |
5018.300 |
|
|
TOTAL IMPORTS |
2871830.000 |
2576930.000 |
1774667.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
64.82 |
61.21 |
62.00 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
5.70 |
5.96 |
8.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.30 |
7.81 |
10.17 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.55 |
9.89 |
10.13 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.16 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.30 |
0.35 |
0.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.73 |
1.92 |
1.36 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
LITIGATION
DETAILS |
|||
|
Case Details Bench:-Bombay |
|||
|
Presentation Date:- 28/06/2013 |
|||
|
Stamp No.:- WPST/17598/2013 |
Filing Date:- 28/06/2013 |
Reg. No.:- WP/6096/2013 |
Reg. Date:- 11/07/2013 |
|
Petitioner:- M/S. SWASTIK INDUSTRIES- |
Respondent:- M/S. RELIANCE INDUSTRIES LTD |
||
|
Petn.Adv.:- M/S. SHAH AND SANGHAVI |
Resp.Adv.:- M/S. PURNANAND AND CO. |
||
|
District:- MUMBAI |
|||
|
Bench:- SINGLE |
|||
|
Status:- Pre-Admission |
|||
|
Next Date:- 25/07/2013 |
Stage:- FOR ADMISSION - CIRCULATION (CIVIL SIDE MATTERS) |
||
|
Coram:- HON'BLE SHRI JUSTICE RAVI K. DESHPANDE |
|||
|
Last Date:- 16/07/2013 |
Stage:- FOR ADMISSION - CIRCULATION (CIVIL SIDE MATTERS) |
||
|
Last Coram:- HON'BLE SHRI JUSTICE RAVI K. DESHPANDE |
|||
|
Act :- C.P.C.- (Interlocutory Order) |
|||
|
CHARGES |
|||
|
ENTITY |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
|
RELIANCE INDUSTRIES |
EPFO |
EXEMPTED AND UNEXEMPTED ESTABLISHMENTS DEFAULTED WITH EPFO INCLUDING PROVIDENT FUND, PENSION AND EDLI CONTRIBUTION, ADMINISTRATION CHARGES AND PENAL DAMAGES OF RS.8.355 MILLIONS |
AMONG OTHER ACTIONS, NAMES OF DEFAULTERS PUT ON THE EPFO
WEBSITE |
UNSECURED LOAN
(Rs.
Millions)
|
Particular |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long Term
Borrowings |
|
|
|
Bonds |
90660.000 |
45640.000 |
|
Term Loans- from banks |
319510.000 |
372690.000 |
|
Deferred payment liabilities |
60.000 |
90.000 |
|
Short Term
Borrowings |
|
|
|
Other Loans and Advances |
|
|
|
From Banks |
|
|
|
Foreign Currency Loans - Buyers/Packing credit |
109780.000 |
97360.000 |
|
Rupee Loans |
1000.000 |
1000.000 |
|
|
|
|
|
Total |
521010.000 |
516780.000 |
RESULTS OF OPERATIONS
The global economy in the Financial Year (FY) 2012-13 improved slowly, but was short on expectations. Several
European economies experienced recession due to high unemployment, banking fragility, fiscal tightening and sluggish growth. The U.S. economy improved marginally, driven mainly by housing and the consumer sectors; however, capital investments remained sluggish. Among the Asian economies, China going through a political transition, experienced considerably slow growth. Deceleration in industrial output and exports weakened India’s economic growth significantly.
FY 2012-13 proved to be a challenging year amidst global economic uncertainties and disturbances in many parts of the world. Despite these constraints and challenging environment, the Company performed reasonably well and the highlights of the performance are as under:
· Revenue from operations increased by 9.2% to Rs. 3711190.000 Millions ($68.4 billion)
· Exports increased by 15% to Rs. 2392260.000 Millions ($ 44.1 billion)
· PBDIT decreased by 2.6% at Rs. 387850.000 Millions ($ 7.1 billion)
· Profit Before Tax increased by 2.1% at Rs. 262840.000 Millions ($ 4.8 billion)
· Cash Profit was at Rs. 305050.000 Millions ($ 5.6 billion)
· Net Profit increased by 4.8% to Rs. 210030.000 Millions ($3.9 billion)
· Gross Refining Margin was $ 9.2 / bbl for the year ended March 31, 2013
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. 289500.000 Millions ($ 5.3 billion) was paid in the form of various taxes and duties.
The Company featured in the Fortune Global 500 list of the world’s largest corporations for the eighth consecutive year. The company was ranked 99th based on sales and 130th based on profits.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
OVERVIEW
The global economy in FY 2012-13 improved slowly and did not recover to the extent anticipated in the beginning of the year. Several European economies experienced recession due to high unemployment, banking fragility, fiscal tightening and sluggish growth. The U.S. economy improved marginally, driven mainly by housing and the consumer sectors; however, capital investments remained sluggish. Among the Asian economies, China, going through a political transition, experienced considerably slower growth. Deceleration in industrial output and exports weakened India’s economic growth significantly. The weak macro environment and slower growth caused the margin environment to remain volatile with downward bias.
Oil demand increased by 0.9 MMBPD in 2012. Eurozone’s recession and emerging markets slowdown weakened global economy, which in turn, impacted demand growth. Increased production, particularly in North America and Iraq, helped meet this demand, partly offset by decreasing supply from some Middle Eastern countries, especially Iran and Syria. The average Brent crude oil price increased marginally in 2012 to reach $111.6 per barrel.
Reliance Industries Ltd. (RIL) demonstrated its ability to perform in this challenging environment and enhanced its revenues by 9.2% to Rs. 3711190.000 Millions and profits by 4.8% to Rs. 210030.000 Millions. RIL achieved record exports (15% higher) at Rs. 2392260.000 Millions, as against Rs. 2080420.000 Millions in FY 2011-12. RIL’s consolidated revenue from operations for the year ended March 31, 2013 was Rs. 3970620.000 Millions, an increase of 10.8% on a year on year (Y-o-Y) basis.
RIL’s KG-D6 facility, completing four years of operations, produced 3.31 million barrels (MMBL) of crude oil and condensate and 336 billion cubic feet (BCF) of natural gas. In the downstream segments, RIL maintained operating rates over 100% in the refining and petrochemicals businesses. The Company processed a record 68.5 million tonnes (MMT) of crude at its Jamnagar refinery complex. RIL’s performance can be attributed to its strong integrated business model, wide product portfolio and increasing demand for its products. RIL’s facilities continued to deliver operating excellence and this is a true testimony of the quality of its manufacturing assets and human talent. RIL was featured in the Fortune Global 500 list of the world’s largest corporations for the eighth consecutive year. It was ranked 99th based on sales and 130th based on profits.
RIL-BP Partnership
In its second year of the partnership, RIL and BP combined their expertise in deepwater exploration and development and operations in India. Both the teams worked closely to understand the complex geology of the east-coast of India including KG-D6 block. The efforts are on, to map out an exploration and development campaign that will efficiently target high quality prospects in deeper zones and optimize existing as well as future development plans.
The Company is creating a projects pipeline for the next wave of oil and gas development, which includes satellite discoveries in KG-D6 block. Under the block’s enhancement plan, the Company aims to invest in a series of projects to develop around 4 trillion cubic feet (TCF) of discovered natural gas resources over the next 3-5 years. These project implementations in the KG-D6 enhancement plan are subject to the timely regulatory and Government approvals. At current international Liquefied Natural Gas (LNG) prices, it would cost over $ 50 billion to import this gas volume into India. Gas from these projects will deliver energy to millions of Indians and would significantly help India reduce import dependence.
FINANCIAL PERFORMANCE
The net profit for FY 2012-13 was at Rs. 210030.000 Millions ($ 3.9 billion) with a compounded annual growth rate (CAGR) of 18% over the past 10 years. RIL has announced a dividend of 90% amounting to Rs. 30920.000 Millions ($ 570 million), including dividend distribution tax. This is the highest pay-out ever by RIL and in line with its prudent distribution commitment.
Highlights of RIL’s consolidated performance for the year are as follows:
· Revenue from operations increased by 10.8% to Rs. 3970620.000 Millions ($ 73.1 billion)
· PBDIT increased by 0.5% to Rs. 409120.000 Millions ($ 7.5 billion)
· Profit Before Tax increased by 3.2% to Rs. 261500.000 Millions ($ 4.8 billion)
· Cash Profit decreased by 1.5% to Rs. 321150.000 Millions ($ 5.9 billion)
· Net Profit increased by 5.9% to Rs. 208790.000 Millions ($ 3.8 billion)
RIL continued to play a pivotal role in the growth of India’s economy. It accounted for:
· 14% of country’s exports (RIL exports at $ 44.1 billion)
· 4.8% of indirect tax revenues
· 4% of total market capitalisation
· Weightage of 8.6% in the Bombay Stock Exchange (BSE) Sensex
· Weightage of 7.0% in the National Stock Exchange (NSE) Nifty
FINANCIAL REVIEW
RIL delivered superior financial performance with improvements across key parameters. RIL achieved a Revenue from operations for the year ended 31st March 2013 of Rs. 371,119 Millions ($ 68.4 billion), an increase of 9.2% on a Y-o-Y basis. The Refining business revenues increased by 11.6%, Petrochemicals by 9.3% while Oil and Gas revenues decreased by 35.2% on account of lower production. Higher prices accounted for 11.0% growth in revenue which was partly offset by the decrease in volumes by 1.8%. Exports were higher by 15.0% at Rs. 2392260.000 Millions ($ 44.1 billion) as against Rs. 2080420.000 Millions in FY 2011-12.
Higher crude oil prices increased raw materials consumption by 11.4% to Rs. 3061270.000 Millions ($ 56.4 billion) on a Y-o-Y basis.
Employee costs were at Rs. 33540.000 Millions ($ 618 million) for the year as against Rs. 28620.000 Millions in the previous year. Other expenditure increased by 26.6% from Rs. 180400.000 Millions to Rs. 228440.000 Millions ($ 4.2 billion) primarily due to higher expenses on account of power and fuel, selling and distribution, sales tax, professional fees and repairs.
Operating profit before other income and depreciation decreased by 8.4% from Rs. 336190.000 Millions to Rs. 307870.000 Millions ($ 5.7 billion) due to reduction in oil and gas and petrochemicals earnings, partially offset by higher operating profit from refining. Net operating margin was lower at 8.5% as compared to 10.2% on a Y-o-Y basis due to lower production of oil and gas and weaker petrochemicals business margins.
Other income was higher at Rs. 79980.000 Millions ($ 1.5 billion) as against Rs. 61920.000 Millions primarily due to an increase in cash flows from operations that were deployed in bank deposits, mutual funds and Government securities / bonds.
Depreciation (including depletion and amortisation) was lower by 16.9% at Rs. 94650.000 Millions ($ 1.7 billion) against Rs. 113940.000 Millions in FY 2011-12. This was primarily due to lower production of oil and gas.
Interest cost was higher at Rs. 30360.000 Millions ($ 559 million) as against Rs. 26670.000 Millions in FY 2011-12 principally due to higher foreign currency borrowings and depreciation of the Indian rupee. This resulted in gross interest cost being higher at Rs. 34210.000 Millions ($ 630 million) as against Rs. 30970.000 Millions in FY 2011-12. Interest capitalised was lower at Rs. 3850.000 Millions ($ 71 million) as against Rs. 4300.000 Millions.
Profit after tax for the year was at Rs. 21,003 Millions ($ 3.9 billion) as against Rs. 20,040 Millions in the previous year.
Basic EPS for the year was Rs. 64.8 ($ 1.2) as compared to Rs. 61.2 in the previous year.
RIL’s consolidated revenue from operations for FY 2012-13 was Rs. 3970620.000 Millions ($ 73.1 billion), an increase of 10.8% on a Y-o-Y basis. Profit after tax was at Rs. 208790.000 Millions ($ 3.8 billion), an increase of 5.9% as against Rs. 19,724 Millions in the previous year. Basic EPS for the year was at Rs. 70.7 ($ 1.3), as against Rs. 66.2 in the previous year.
The Company is debt-free on a net basis as on March 31, 2013. Return on capital employed was at 11.2% and return on equity was at 12.8%.
RIL bought and extinguished 42,582,849 equity shares for a sum of Rs. 30440.000 Millions during the year. The Company cumulatively bought and extinguished 46,246,280 equity shares at a total cost of Rs. 33660.000 Millions under the buy- back scheme.
The net addition to fixed assets for FY 2012-13 was Rs. 190410.000 Millions ($ 3.5 billion) including an addition of Rs. 19420.000 Millions on amalgamation of Reliance Jamnagar Infrastructure Limited. Capital expenditure was incurred principally on account of on-going expansion projects at Jamnagar, Dahej, Silvassa and Hazira.
During the year, a total of Rs. 289500.000 Millions ($ 5.3 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. 2392260.000 Millions ($ 44.1 billion) as against Rs. 2080420.000 Millions in the previous year.
RIL exported to 116 countries around the world. The exports represent 64% of the RIL’s turnover. Petroleum products constituted 89% of exports value, while the balance was contributed by petrochemicals.
BUSINESS PERFORMANCE
OIL AND GAS
EXPLORATION AND PRODUCTION
BUSINESS
Business Environment
- Global
In 2012, crude oil prices averaged $ 111.6/bbl, while Asian LNG prices averaged $ 15.1/MMBTU. Oil prices remained high as 2012 demand increased by 0.9 MMBPD while non OPEC supply increased only by 0.60 MMBPD which increased the call on OPEC in 2012.
In the year 2013, the incremental oil demand may only be 0.8 MMBPD as per the IEA Oil Market Report dated March 2013 taking the cumulative demand to 90.6 MMBPD for 2013. However, incremental non-OPEC supply would be 1.1 MMBPD due to rise in production from North American shale oil, Iraq and Canadian oil sands, offsetting declines elsewhere in the non-OPEC regions.
Upstream oil and gas investment for 2012 was estimated at about $ 620 billion - higher by 8% than in 2011 and 20% than in 2008 (Source: EIA’s World Energy Outlook 2012). The increased spending reflects a combination of improved returns, spurred by higher oil prices and rising costs of current and planned projects. Despite signs of declining cost inflation with easing global commodity prices, deep and ultra-deep-water rig rates stayed high, even exceeding $ 650,000/day and the subsea market remained tight.
Global LNG prices remained buoyant due to increasing demand in LNG mainly in Japan, China, India and South America contributing to the market tightness. Supply was constrained by maintenance and unscheduled interruptions on existing liquefaction plants, as well as lower-than-expected capacity additions, with only onenew train Pluto in Australia coming into service.
US gas prices rallied to over $ 4/MMBTU in recent months. The strength in the current rally may be sustained, as the US considers policy moves allowing LNG exports, coal-fired power plants shutdown due to proposed environmental regulations and the planned conversion of the truck and rail engine fleets into CNG.
RIL: Portfolio
Overview
Through continuous assessment of its portfolio in terms of prospectivity and risk profile, RIL rationalises its portfolio focusing on monetising and maximising value. RIL’s upstream business has been restructured into different sectors i.e., Conventional, CBM and Shale Gas. In this way the risks and dynamics of each sector are clearly understood and distinctly managed to maximise value and growth.
Coal Bed Methane
(CBM):
RIL currently holds two CBM blocks (Sohagpur East and Sohagpur West) in India which are in an early stage of development.
North America Shale
Gas:
RIL has three JVs, with Pioneer Natural Resources, Carrizo Oil and Gas and Chevron. Apart from this, the Company has a successful midstream joint venture (JV) with Pioneer Natural Resources that caters primarily to the gathering and transportation needs of Pioneer upstream JV.
Pioneer JV Highlights
Pioneer Upstream JV operated with 10 rigs, drilled 133 wells and put 135 wells on production during the year. Producing well count jumped from 111 in December 2011 to 246 by December 2012, thus enabling strong growth in production volumes. Reliance’s share of production (gross) at 11.83 MMBOE reflected a growth of 137% over 2011 levels. Share of liquids remained high at 62% in 2012.
Proved reserves more than doubled from 527 BCFe in 2011 to 1.08 TCFe in 2012. With regular pad drilling, closer spacing is getting established and more Proved Undeveloped (PUD) reserves are added. It is anticipated that Proved Developed Producing (PDP) reserve would increase further, as active pursuit of choke management is arresting declines and maintaining higher yields.
Reliance has now developed a good understanding of heterogeneity of the play with sweet spots and marginal areas, which has helped in high-grading of development activities. Remarkable improvement in drilling efficiencies and completion costs helped the JV to more than offset the impact of industry service cost inflation. Increased use of pad drilling, zipper fraccing and use of sand as proppant as well as benefits of other ongoing initiatives should help reduce unit FandD costs in the future.
Carrizo JV Highlights
Despite a slow start, Carrizo JV attainted significant growth momentum in 2012. JV drilled 37 wells and put 30 on production during the year. Producing a well count of 38 reflects a growth of 375% Y-o-Y. Net proved reserves more than tripled to 234 BCFe in 2012. Exit rate of production at 106 MMCFD in December 2012, compares impressively with 18 MMCFD achieved in December 2011.
JV is pursuing paced development in view of the challenging pricing environment, but remains focused on expedited development of North Eastern Pennsylvania (NEPA) acreages. NEPA acreages are in the sweet spot of the Marcellus play and the performance of NEPA wells has been encouraging, with a much lesser decline thus offer superior economics. JV made significant progress in its appraisal efforts for the C-counties (85% of JV acreages). Results of the appraisal activity are being studied. In the interim, JV would pursue cost-effective lease renewal strategy towards retaining optionality on the acreages.
Chevron JV Highlights
Chevron JV gained development momentum during the second half, though suffered initially on account of continued delay in the availability of midstream infrastructure during the first half of the year. Midstream availability improved considerably during second half of the year.
JV drilled 85 wells and put 63 on production during the year. Cumulatively the number of producing wells was impressive at 101 in December 2012, reflecting a growth of 166% Y-o-Y. Exit rate of production at 185 MMCFD in December 2012, reflects a growth of 143% over 76 MMCFD achieved in December 2011. Net proved reserves nearly tripled to 542 BCF in 2012. Well performance has varied and reflected heterogeneity and geological complexity of the acreage.
Cost reduction efforts yielded limited success. JV realized some cost savings in procurement and rig mob/demob operations, but their impact were masked by higher well pad construction costs in the difficult terrains. Focus in the areas of pad optimisation, facility standardisation, central water impoundment and supply chain management are expected to yield lower costs in the coming year. Enhanced focus on development optimisation, drilling efficiency improvement, water management, adoption of zipper frac and other completion cost reduction initiatives are expected to yield desired reduction in well costs over the next three years.
JV is pursuing paced development in view of the challenging pricing environment and remains focused on 6.0 BCF dry gas areas while retaining optionality on acreages through low cost lease renewals and their expedited development with any improvement in market conditions.
RIL E and P Outlook
By the end of 2012, fields in the KG-D6 block had produced 2 TCF of gas and 22 million barrels of oil, creating unprecedented value for the Nation through nearly $ 35 billion in energy import savings. In partnership with BP, RIL plans to become a major player across the gas value chain in India. The JV has made significant progress towards finding new resources through exploration by identifying new prospects in its deepwater acreages in the East Coast. Further, the JV through extensive efforts is poised to unlock value from its existing discovered resource base by advancing its planning for the next wave of projects in KG-D6 and NEC-25.
RIL’s CBM block continues to make steady progress towards developing the Sohagpur East and West blocks to produce first gas by FY 2014-15.
Reliance expects to see continued growth momentum in the shale business during FY 2013-14. Natural gas prices have improved in recent weeks, crossing the $ 4/MMBTU. While oil price outlook is stable, NGL prices remain under pressure on continued supply side pressures. Well costs remain stable as benefits of ongoing cost and efficiency improvements are partly offset by inflation in service costs.
Reliance remains focused on liquid-rich development activities at the Eagle Ford JV and paced development in its Marcellus JVs. Optimising HBP (Held by Production) efforts and pursuing cost effective lease renewal for retaining optionality on resources is the common theme across JVs. In future, the Company will continue to focus on efficiency improvement and cost reduction, optimizing netback through enriched product and customer mix, as well as high grading of development to ensure superior return on incremental capital spending.
To complement the existing asset base, RIL continues to look at new opportunities globally that are a strategic fit with capabilities and integrated petroleum value chain. In the upstream business, RIL aspires to:
· Become a global top 10 independent hydrocarbon producer through significant and sustainable value creation
· Be India’s top player across the gas value chain
· Responsible operations from an environment and people perspective
· Have best in class people, processes and technology
· Be recognised as a “Partner of Choice” for its stakeholders
The chief enablers for the business model to achieve the above aspiration would be:
· To grow profitably, organically or inorganically, while strengthening its Indian and international positions
· Continued integrated presence across upstream, midstream infrastructure and downstream
· Implementing Centres of Excellence and partnership models to bring and help adopt best processes, technologies and people globally
RIL Performance
Overall, RIL’s refining business had a record financial performance for FY 2012-13 with Gross Refining Margin (GRM) averaging $ 9.2/ bbl, as against $ 8.6/ bbl in FY 2011-12. Though the refining margins remained weak in the first half, margins strengthened in the second half with weakness in fuel oil cracks widening the light heavy differentials and supporting complex refining margins. The margins were also supported by unplanned refinery outages in the second half of the year.
RIL’s refineries continue to outperform their global peers, given their competitive strength to process challenged feedstock and produce clean fuels, at low operating costs.
Total exports of refined products from both refineries reached $ 39.3 billion during the year, as compared to $ 36.0 billion in the previous year. Exports of refined products were 41.2 MMT as compared to 39.6 MMT during the same period last year.
Global PET Scenario
The US and European discretionary spending reduction and poor weather conditions, impacted PET bottles demand.
Prices in FY 2012-13 declined 11% to $ 1450/MT. Further delta declined 25% to $ 167/MT due to bearish sentiments and the rapid capacity build-up. During the year, global PET capacity grew 9% to 22 MMT, with production rising by only 6% to 18 MMT. China alone accounted for 46% of the capacity growth. The large capacity build up in China forced many producers to reduce operating rates and cut down inventory in the second half of the year.
Global Cotton
Scenario
Global cotton production in the 2012-2013 cotton year surpassed consumption, leading to closing stocks reaching historical high. Record Chinese strategic cotton reserve procurement helped stabilise both Chinese and global
cotton prices. Moreover, procurement prices, fixed by China Reserve, were substantially higher than the international rates, putting pressure on the competitiveness of the Chinese spinners.
By the end of the 2012-13 cotton season, China is estimated to have about 10 MMT closing stock which translates to over 50% of the global stocks and almost a year’s Chinese domestic consumption.
Outlook
Global textile fibre industry is expected to grow 24 MMT by 2020 to 105 MMT. Of this polyester will account for over 68% of global demand growth. India is poised to strengthen its global foothold with polyester production share rising to 10% of global volume from the current 8%.
The global PET industry is likely to witness capacity growth of 10 MMT by 2015 to about 32 MMT. With supplies likely to remain above incremental demand, utilisation rates are expected to remain under pressure in the medium term.
For feedstock, tight PX market conditions are likely to continue till 2014 until planned capacity additions are executed. The year 2015 would witness PX capacity growth of 12 MMT over 2012. Operating rates are expected to be maintained above 80%. PTA markets will continue to witness oversupply, with excess capacities likely to make China self-sufficient in the next two years.
China is likely to emerge as a major influence in the global MEG markets by 2015 with 85% of global MEG expansions. Any issue in the operational success of MEG manufactured from the planned coal-based DMO process, would lead to product shortage and impact prices.
India’s all fibre textile mill consumption is likely to grow at a 5.2% CAGR between 2012 and 2020 to 12.3 MMT.
The CAGR growth for the demands for PFY and PSF are expected to be 8.6% and 5.4%, respectively. Polyester is likely to account for a major 60% of incremental domestic fibre demand between 2012 and 2020.
As per Technopak projections, India’s total textile and apparel market size (domestic and export), estimated at $ 89 billion in 2011, is projected to grow at a 9% CAGR to reach $ 223 billion by 2021.
The domestic textile and apparel market size was $ 58 billion in 2011 and is projected to grow to $ 141 billion by 2021. The key growth segments are technical textiles which is likely to see a 10% CAGR, followed by 9% in apparels and 8% in home textiles.
Future Outlook
The Indian retail sector is expected to continue its growth trajectory. Organised retailing is expected to grow at a faster rate thereby garnering a larger share of the market from the current 8% to around 20% by 2020 due to the changing consumer preferences and other growth drivers of organised retail in the country.
Retail business is in a unique position to capitalise on the growing opportunity in India. It is undertaking expansion of all existing formats to strengthen its leadership position vis-à-vis competition. This can be achieved by growing in existing markets and entering newer markets with the intention of ‘Bettering the Lives of Indians Everyday’.
Digital Sector would be one of the growth verticals for the coming year. Reliance Digital stores and Digital Express stores would be rolled out in Tier-I and Tier-II cities and would bring the connected world experience to consumers. The focus would be to further strengthen ResQ, the service arm of the Digital format. ResQ brings in strong service orientation towards meeting the requirements of the customers during the entire product lifecycle.
Retail business seeks to add alternative channels to reach out to customers and has been intensely working on creating a multi-channel model that would benefit customers by offering them convenience of shopping anywhere, anytime and at the best available value proposition.
All formats would be working relentlessly to further their leadership positions in respective sectors making them the favourite shopping destination for Indian customers.
CONTINGENT
LIABILITIES
(Rs. In Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
|
Claims against the company
/ disputed liabilities not acknowledged as debts |
|
|
|
In respect of others |
16630.000 |
13430.000 |
|
Guarantees |
|
|
|
Guarantees to Banks
and Financial Institutions against credit facilities extended to third
parties |
|
|
|
In respect of others |
310800.000 |
295830.000 |
|
Performance
Guarantees |
|
|
|
In respect of others |
2580.000 |
1590.000 |
|
Outstanding
guarantees furnished to Banks and Financial Institutions including in respect
of Letters of Credits |
|
|
|
In respect of joint ventures |
1600.000 |
2280.000 |
|
In respect of others |
50990.000 |
51670.000 |
|
Other Money for
which the company is contingently liable |
|
|
|
Liability in respect of bills discounted with Banks (Including third party bills discounting) |
|
|
|
In respect of others |
39610.000 |
6310.000 |
FIXED ASSETS
Tangible Assets
· Leasehold Land
· Freehold Land
· Buildings
· Plant and Machinery
· Electrical Installations
· Equipments
· Furniture and Fixtures
· Vehicles
· Ships
· Aircrafts and Helicopters
Intangible Assets
· Technical Knowhow fees
· Software
· Development Rights
AS PER WEBSITE
DETAILS
Press Release
RELIANCE INDUSTRIES
AWARDED 'INTERNATIONAL REFINER OF THE YEAR' 2013
Mumbai, March 22, 2013: Reliance Industries Limited (RIL) was awarded the prestigious 'International Refiner of the Year' 2013 at HART Energy’s 27th World Refining and Fuel Conference held recently at San Antonio, Texas, USA. The award was presented to Reliance for producing cleaner, higher-quality gasoline and diesel fuel, operating with the highest international refining standards and innovative use of resources in diverse environments and for innovation, global vision, and ability to chart future changes.
Mr. K. Balachandran, Chief of Operation (Jamnagar Refinery and Petrochemical Complex), accepted the award on behalf of Reliance and its employees. This is the second time that Reliance has received this Award for its Jamnagar Refinery, the first being in 2005. RIL is the only Asian refiner to have been conferred this award twice.
Reliance operates two of the world’s largest and most complex refineries. With 1.24 million barrels per day (MBPD) of crude processing capacity, Reliance is the largest refiner at any single location in the world. The addition of a new refinery has transformed its Jamnagar complex into the ‘largest refining hub of the world’. Further, Reliance is among the Top 10 private sector refining companies globally, and owns 25% of the world’s most complex refining capacity.
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 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.
RELIANCE INDUSTRIES
LIMITED UPGRADED TO 'BBB+' FROM 'BBB' BY S AND P
Mumbai, 30th May 2013: Standard and Poor's announced that it has raised the long-term corporate credit rating on Reliance to 'BBB+' from 'BBB', one of the highest ratings by S and P for an Indian corporate and the highest rating by S and P for an Indian Oil and Gas company.
The new rating which is two notches above the S and P rating for the Indian sovereign is testament to Reliance's strong financial and business profile. Furthermore, Reliance is the only Asian company in the Oil and Gas sector to be rated two notches above the sovereign by S and P. With this upgrade, Reliance is now rated higher than some of its Global Emerging Market peers demonstrating the strength and competitive position of Reliance in the refining and petrochemicals sector.
S and P has taken cognizance of Reliance’s plans to invest more than US$30 billion in growing its businesses over the next 3 years and has stated that the expansion program would further strengthen Reliance's competitive position and profitability. The upgrade confirms Reliance’s strong financial metrics and liquidity position in the sector.
The rating also underpins Reliance’s position as a leading large scale, integrated, and efficient oil refining and petrochemicals company.
V. Srikanth, Joint CFO of Reliance Industries, commented, “The upgrade recognizes the value of our focused capital expenditure plan in strengthening our profitability and competitiveness. It reflects the confidence of the rating agency on our execution skills, discipline and financial prudence. I am also delighted that this rating brings us at par with many companies in our international peer group.”
RIL, BP AND NIKO
ANNOUNCE A SIGNIFICANT GAS CONDENSATE DISCOVERY IN DEEPWATER KG D6 BLOCK,
OFFSHORE INDIA
May 24, 2013
Reliance Industries Limited (RIL) and its partners BP and NIKO today announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of
India.
The KGD6-MJ1 well was drilled in a water depth of 1,024 metres - and to a total depth of 4,509 metres - to explore the prospectivity of a Mesozoic Synrift Clastic reservoir lying over 2,000 metres below the already producing reservoirs in the D1- D3 gas fields.
Formation evaluation indicates a gross gas and condensate column in the well of about 155 metres in the Mesozoic reservoirs. In the drill stem test, the well flowed 30.6 million standard cubic feet per day (mmscf/d) and liquid rate of 2,121 barrels a day with a choke of 36/64" with a flowing bottom hole pressure of 8,461 psia suggesting good flow potential. Well flow rates during such tests are limited by the rig and well test equipment configuration.
The discovery, named ‘D-55’, has been notified to the Government of India (GoI) and the Management Committee of the block. This discovery is expected to add to the hydrocarbon resources in the KG D6 block. Appraisal will now commence to better define the scale and quality of the field.
Expressing happiness at the discovery encountered through this well, PMS Prasad, Executive Director, Reliance Industries Limited, stated: “This is a successful outcome of the combined exploration efforts of the Joint Venture partners with the active support of the GoI. We shall embark on the appraisal program in the next few months in order to evaluate the options for developing this discovery.”
Dr Mike Daly, Executive Vice President Exploration at BP, commented: “The discovery demonstrates the effective technical co-operation between the partners, allowing us to make a new and significant discovery within KG D6. It follows an 18 month drilling time-out and detailed geoscience work that has re-focused our India exploration program and delivered this early success.”
Mr. Edward Sampson, Chairman, President and CEO of Niko Resources Limited stated: ”We congratulate our partners and the Government of India as co-operation in an event like this shows what good can be created for the energy sector and most importantly, for the people of India.”
RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
MUKESH AMBANI'S RGTIL
WINS LICENCE FOR SHAHDOL-PHULPUR LINE
Petroleum and Natural Gas Regulatory Board (PNGRB) on July 11 authorised the Mukesh Ambani-led RGTIL to lay the pipeline from Shahdol in Madhya Pradesh to Phulpur near Allahabad in Uttar Pradesh.
Reliance Gas Pipeline Limited (RGPL), a subsidiary of Reliance Industries , has won a licence to lay a 312-km pipeline to transport coal gas produced from RIL 's Sohagpur block in Madhya Pradesh. Petroleum and Natural Gas Regulatory Board (PNGRB) on July 11 authorised the Mukesh Ambani-led RGPL to lay the pipeline from Shahdol in Madhya Pradesh to Phulpur near Allahabad in Uttar Pradesh.
The pipeline will have a capacity to transport 4.3 million standard cubic metres per day of gas including 0.875 mmscmd capacity which will be available for any third party for open access on non-discriminatory basis. PNGRB in the authorisation order said the pipeline will travel from Shahdol to JaysingNagar to Beohari to Gurh and finally culminate at Phulpur.
At Phulpur, the pipeline may be hooked into state-owned gas utility GAIL India Limited’s main Hazira-Vijaypur-Jagdishpur trunk gas pipeline. Connection with HVJ would enable gas to flow to any consumer. RIL plans to produce 3.5 mmscmd of gas from its Sohagpur (east) and Sohagpur (west) coal-bed methane (CBM) blocks in Shahdol, Madhya Pradesh from 2015.
"The entity is allowed a maximum period of 36 months from the date of issue of authorisation letter for commissioning of the natural gas pipeline project," PNGRB said in the July 11 authorisation letter."Any failure on the part of the entity in complying with the targets prescribed in the time schedule shall lead to consequences" including cancellation of the authorisation, it said.
RGPL has furnished a performance bond of Rs 130.200 Millions as a guarantee for timely commissioning of the project. This is the first authorisation since Ambani's privately owned Reliance Gas Transportation Infrastructure Ltd (RGTIL) lost its permits for laying four natural gas pipelines, over inordinate delays in construction of the 2,175-km lines.
Orders cancelling authorisation issued to RGTIL for laying of four pipelines from Kakinada in Andhra Pradesh to Howrah in West Bengal, Chennai and Tuticorin in Tamil Nadu and Mangalore in Karnataka were issued in October last year. PNGRB in the July 11 authorisation letter said RGPL shall be required to take prior approval from the Board for "creation of any lien or charge or hypothecation on the assets of the natural gas pipeline to secure finances for the project and furnish details of utilisation of funds."
RIL BUYS BACK SHARES
WORTH RS. 38000.000 MILLIONS
December 31, 2012
Reliance Industries has bought back shares worth over Rs. 38000.000 Millions from public shareholders since the launch of its share repurchase programme in February -- achieving 37 per cent of the target with less than a month left for its completion.
RIL's repurchase of shares is already the biggest buy-back by an Indian company, after Piramal Healthcare bought back shares to the tune of Rs. 25080.000 crore in 2011. RIL's buyback would end on January 19, 2013.
According to data available with the exchanges, Reliance Industries (RIL) which began a buyback programme of Rs. 104400.000 Millions early this year, has so far purchased shares worth Rs. 38550.000 Millions. This translates to about 37 per cent of the total targeted amount.
Between February 14 and December 24, RIL has purchased 4.62 crore shares from the secondary market at an average price of Rs. 834 apiece.
RIL's buyback programme had begun on a slow pace, but gained some momentum in May. The programme was announced with an aim to shore up the value of RIL shares, which have underperformed the markets last year and have been mostly trading on a sluggish note in the recent months as well.
The stock is currently trading near Rs. 840 level, which is much below the maximum price of Rs. 870 per share fixed for the buyback.
According to CNI Research Head Kishor Ostwal, the success of buyback offers depends on many factors like willingness to buy the proposed shares and premium sustainability.
"In fact, many corporate houses failed to utilise the entire corpus targeted for the purpose in past and many firms even discontinued buying activities despite shares being available well below maximum buyback price," he added.
"I do not think RIL would complete even 50 percent of the targeted amount and it would aggressively buyback shares in case the price falls drastically," Ostwal said.
Citigroup Global Markets, HSBC Securities and Capital Market and DSP Merrill Lynch are the managers for the offer.
RIL SAYS NO AGREEMENT
DONE TO BUY HOTEL LEELA'S BIZ PARK
December 27, 2012
Reliance Industries says no agreement has been done to buy Hotel Leela's Business Park in Chennai.
With reference to the news item appearing in a leading financial daily titled "RIL to buy Leela's biz park to house 4G ops", Reliance Industries Limited has clarified to BSE that "no agreement has been done to buy Hotel Leelaventure's business park in Chennai as reported.In case, if any information is to be disseminated to the market place, RIL would intimate the Stock Exchanges and Media.
RIL PLANS TO INVEST
USD 10 BN ON ITS 4G NETWORK: VENDOR
December 20, 2012
Mukesh Ambani led Reliance Industries Limited has plans to invest USD 10 billion on 4G network of its subsidiary Infotel Broadband (IBSL), one of its vendors 'Spirit DSP' said today.
The company said it has been selected for providing voice call and video technology by IBSL. "Reliance intends to invest USD 10 billion in its LTE (4G) network and has turned to SPIRIT's software products for voice and video calls over LTE instead of waiting for phone makers who are slow in offering handsets transmitting voice and video in 4G networks," Spirit DSP said in a statement.
IBSL is the only company in the country to have 20 Mhz of pan-India airwaves that it can use for providing 4G services. No immediate comments were available from RIL on Spirit DSP's statement.
Spirit DSP said, through its solution, Reliance will be able to offer its subscribers high-quality services as an alternative to Skype - an application for making voice calls using internet connection, over cellular networks.
At present, most of the people are able to make free calls using Voice over Internet Protocol (VoIP) application like Skype but in India such calls are allowed only between personal computers to personal computers.
In October, IBSL has informed the Telecom Ministry that it is ready for trial runs of a technology that would enable voice calls service on its wireless broadband network and has sought allocation of number series to test its newly developed 'Voice over LTE (VoLTE) technology.
The telecom arm of RIL has told Ministry that it has developed a technology in preparation of a unified licensing regime recommended by the regulator TRAI under which consumers will be able to get voice, messaging and video using a single device.
Sharing details of its plan, IBSL has said that VoLTE technology would enable it to work seamlessly with the existing 2G, 3G, NLD and ILD networks. It added that termination and receiving of calls from these networks to the IBSL network would be possible through the VoLTE technology.
RELIANCE JIO INFOCOMM
AND RELIANCE COMMUNICATIONS SIGN COMPREHENSIVE AGREEMENT FOR SHARING OF TOWERS
INFRASTRUCTURE
RELIANCE JIO INFOCOMM TO UTILISE UP TO 45,000 SITES FROM RCOM’S EXISTING NATIONWIDE NETWORK FOR ACCELERATED ROLL-OUT OF ITS 4G SERVICES
AGGREGATE VALUE OF OVER RS. 120000.000 MILLIONS (OVER US$ 2 BILLION) DURING LIFETIME OF THE AGREEMENT
RELIANCE JIO INFOCOMM AND RELIANCE COMMUNICATIONS TO DERIVE MAJOR BENEFITS FROM SHARING OF CAPITAL AND OPERATING COSTS
TOWER AGREEMENT FOLLOWS INTER-CITY FIBER SHARING AGREEMENT SIGNED AS PART OF LONG TERM BUSINESS CO-OPERATION FRAMEWORK
Mumbai, 7th June, 2013: Reliance Jio Infocomm Limited and Reliance Communications Limited today announced the signing of a definitive agreement for sharing of RCOM’s nationwide telecom towers infrastructure.
Under the terms of the agreement, Reliance Jio Infocomm will utilise upto 45,000 ground and rooftop based towers across RCOM’s nationwide network for accelerated roll-out of its state of-the-art 4G services.
The agreement provides for joint working arrangements to configure the scope of additional towers to be built at new locations to ensure deep penetration and seamless delivery of next generation services.
This agreement follows the inter-city optic fiber sharing agreement already signed in April 2013 as part of a comprehensive framework of business co-operation between Reliance Jio Infocomm and Reliance Communications.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.80 |
|
|
1 |
Rs.91.03 |
|
Euro |
1 |
Rs.78.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
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 |
|
DEFAULTER |
|
|
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.