MIRA
INFORM REPORT
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Report Date : |
29.10.2013 |
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 : |
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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 : |
USD 720000000 |
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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 record. 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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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 |
INDIAN ECONOMIC OVERVIEW
The finance ministry
has started preparations for Budget 2014/15. With general elections scheduled
to be held by May next year, there will only be an interim budget. The new
government will present the fiscal Budget.
The Supreme Court
has barred clinical trials for new drugs till a monitoring mechanism is put in
place to protect the lives of people on which the drugs are tested.
Mumbai has been
named the world’s second most honest city according to a survey on 15 cities
worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top
spot for the world’s most honest city while Lisbon, the capital of Portugal,
proved to be the least honest. The survey put hundreds of people to test
in four continents to find out just how honest they were by dropping wallets
and seeing how many would be returned.
3.7 % Growth of the
core sector in August, a seven month high. This takes the overall growth in
April-August this year to 2.3 % compared with 6.3 % in the corresponding period
next financial year.
$19 million Estimated
average spending by companies across the globe including India, on social media
this year, according to a global study by information technology major Tata
Consultancy Services. This will rise to $ 24 million in 2015.
Rising inflation,
fewer employment avenues and dwindling earnings are taking a toll on the
spending capacity in India. Over 72 % respondents from middle and lower middle
income families would be forced to slash their Diwali expenditure by 40 % and
on average spend nearly 25 % of their monthly salary on Diwali, according to a
survey by Assochem.
Analysts believe the
shutdown of the US government would have limited impact in sectors such as IT
or tourism that are dependent on Visa clearances.
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: 30.09.2013
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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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21172646 |
0.68 |
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1322298328 |
42.38 |
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120471003 |
3.86 |
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120471003 |
3.86 |
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1463941977 |
46.92 |
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Total shareholding of Promoter and Promoter Group (A) |
1463941977 |
46.92 |
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(B) Public Shareholding |
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83266938 |
2.67 |
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4135237 |
0.13 |
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3198144 |
0.10 |
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291858202 |
9.35 |
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571464071 |
18.32 |
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953922592 |
30.57 |
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141394650 |
4.53 |
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334491222 |
10.72 |
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26276345 |
0.84 |
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200129075 |
6.41 |
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20932112 |
0.67 |
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1064527 |
0.03 |
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171883624 |
5.51 |
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6248812 |
0.20 |
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702291292 |
22.51 |
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Total Public shareholding (B) |
1656213884 |
53.08 |
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Total (A)+(B) |
3120155861 |
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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|
110489740 |
0.00 |
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110489740 |
0.00 |
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Total (A)+(B)+(C) |
3230645601 |
0.00 |
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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 |
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N.A. |
60 |
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Ethylene |
MT |
N.A. |
1883400 |
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Propylene |
MT |
N.A. |
759800 |
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Benzene |
MT |
N.A. |
730000 |
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Toluene |
MT |
N.A. |
197000 |
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Xylene |
MT |
N.A. |
165000 |
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Hydro Cynic Acid ' |
MT |
3600 |
3600 |
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Ethane Propane
Mix |
MT |
N.A. |
450000 |
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Caustic Soda Lye
/ Flakes |
MT |
N.A. |
168000 |
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Chlorine |
MT |
N.A. |
141200 |
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Acrylonitrile |
MT |
N.A. |
41000 |
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Linear Alkyl
Benzene |
MT |
N.A. |
182400 |
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Butadiene and
Other C4s |
MT |
N.A. |
419000 |
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Cyclohexane |
MT |
N.A. |
40000 |
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Paraxylene |
MT |
N.A. |
1856000 |
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Orthoxylene |
MT |
N.A. |
420000 |
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Toluole |
MT |
N.A. |
180000 |
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Poly Vinyl
Chloride |
MT |
N.A. |
625000 |
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High / Linear
Low Density Poly Ethylene |
MT |
N.A. |
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 |
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Knitting M/C |
Nos |
22 |
20 |
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Solar
photovoltaic modules |
M.W |
N.A. |
30 |
PRODUCTION MEANT FOR 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 |
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Propylene |
MT |
6895 |
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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 |
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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 |
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Ethylene Glycol |
MT |
265244 |
|
Purified Terephthalic Acid |
MT |
622097 |
|
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) |
|
|
|
|
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
After 06.06.2013
Authorised Capital : Rs.60000.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.32306.456
Millions
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 Lodging No.:- WPL/1984/2012 Filing Date:- 06/08/2012 Reg. No.:- WP/1826/2012 Reg. Date:- 24/08/2012 Petitioner:- Bhartiya
Kamgar Karmachari and ANR. Respondent:- Reliance Industries Limited and ANR Petn.Adv.:-
Mr. G.S Baj
Category:- Part Heard (Civil Side Matters) District:- Mumbai Stage: For Admission – Fresh (Civil Side Matters) Bench:-
Single Status:- Pre-Admission Next Date:- 29.10.2013 Coram:-
Hon’ble Shri Justice A.A Sayed Last Date:
21.06.2013 Last Coram:
Hon’ble Mrs. Justice Mridula Bhatkar |
CHARGES
|
ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY
CHARGES |
REGULATORY
ACTION (S) / DATE OF ORDER |
FURTHER
DEVELOPMENTS |
|
RELIANCE INDUSTRIES LIMITED |
|
EPFO |
EXEMPTED AND UNEXEMPTED ESTABLISHMENTS DEFAULTED WITH EPFO INCLUDING PROVIDENT FUND, PENSION AND EDLI CONTRIBUTION, ADMINISTRATION CHARGES AND PENAL DAMAGES OF RS.83.55 LAKHS |
AMONG OTHER ACTIONS, NAMES OF DEFAULTERS PUT ON THE EPFO WEBSITE |
|
|
RELIANCE INDUSTRIES LIMITED |
|
NSDL |
HIGH PENDING DEMAT REQUESTS |
PUT UP ON NSDL WEBSITE FOR PUBLIC NOTICE |
NOT APPEARING IN THE LIST DATED 15/04/2011 |
|
RELIANCE INDUSTRIES LIMITED |
|
CDSL |
HIGH PENDING DEMAT REQUESTS |
PUT UP ON CDSL WEBSITE FOR PUBLIC NOTICE |
NOT APPEARING IN THE LIST DATED 16/04/2011 |
|
RELIANCE INDUSTRIES LIMITED |
|
NSE |
HIGHEST NUMBER OF COMPLAINTS PENDING AS ON 28-FEBRUARY-2007 |
PUT UP ON NSE WEBSITE FOR PUBLIC NOTICE |
NOT APPEARING IN LIST AS ON 31-MARCH-2007 |
|
RELIANCE INDUSTRIES LIMITED |
|
SEBI |
DID NOT COMPLY WITH SEBI TAKEOVER REGULATIONS, 1997 |
IMPOSED PENALTY RS.4,75,000 |
SAT: IMPUGNED ORDER SET ASIDE WITH NO ORDER AS TO COSTS |
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 Limited. (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
INDEX OF CHARGES
|
S. NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10233708 |
18/08/2010 |
5,000,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
MAKER TOWERS 'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
A91847947 |
|
2 |
10143663 |
24/08/2009 * |
50,000,000,000.00 |
AXIS BANK LIMITED |
13TH FLOOR, "F" WING, MAKER TOWERS, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
A69480861 |
|
3 |
10141936 |
12/02/2009 |
10,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
A56494032 |
|
4 |
10142081 |
12/02/2009 |
10,000,000,000.00 |
AXIS BANK LIMITED |
13TH FLOOR, "F" WING, MAKER TOWERS, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
A56507494 |
|
5 |
10143216 |
12/02/2009 |
5,000,000,000.00 |
AXIS BANK LIMITED |
13TH FLOOR, "F" WING, MAKER TOWERS, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
A56639206 |
|
6 |
10082527 |
30/12/2010 * |
126,500,000,000.00 |
STATE BANK OF INDIA |
MADAME CAMA ROAD, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B03977386 |
|
7 |
10269725 |
20/12/2007 |
126,500,000,000.00 |
STATE BANK OF INDIA |
STATE BANK BHAVAN, MADAM CAMA ROAD, MUMBAI, MAHARASHTRA - 400021, INDIA |
A70629001 |
|
8 |
10208261 |
23/07/2007 |
20,200,000,000.00 |
STATE BANK OF INDIA |
STATE BANK BHAVAN, MADAME CAMA ROAD, MUMBAI, MAHARASHTRA - 400021, INDIA |
A70629233 |
|
9 |
10058972 |
12/06/2007 |
500,000,000.00 |
DENA BANK |
INDUSTRIAL FINANCE BRANCH, MAKER TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
A16943219 |
|
10 |
10021285 |
27/10/2006 |
450,973,700.00 |
UTI BANK LIMITED |
TRISHUL 3RD FLOOR OPPOSITE SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA |
A05375266 |
* Date of charge modification
AS PER WEBSITE
DETAILS
PRESS RELEASES
RELIANCE JIO INFOCOMM GETS UNIFIED LICENSE FOR 22 SERVICE AREAS ACROSS
INDIA
OCTOBER 25, 2013
Reliance Jio Infocomm (RJIL), a subsidiary of Reliance Industries, has received Unified License for all 22 Services Areas across India and becomes the first telecom operator in the country to get pan India Unified License. The Unified License would allow RJIL to offer all telecom services including voice telephony under a single license.
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 Ltd 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.
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. On October 29, 2013, at 09:37 hrs Reliance Communications was quoting at Rs 140.50, down Rs 0.65, or 0.46 percent. The 52-week high of the share was Rs 164.45 and the 52-week low was Rs 50.25. The company's trailing 12-month (TTM) EPS was at Rs 3.14 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 44.75. The latest book value of the company is Rs 160.57 per share. At current value, the price-to-book value of the company was 0.88.
DOUBLE PENALTY ON RIL TO IMPACT INVESTMENT CLIMATE: PLAN PANEL
OCTOBER 27, 2013
New Delhi: The Planning Commission has warned that imposing a second penalty on Reliance Industries for producing less-than-projected natural as from its KG-D6 fields could impact investment climate in the same manner as retrospective tax amendments. The Planning Commission, in its comments on a draft cabinet note floated by the petroleum ministry seeking to deny higher prices for the currently producing main fields in the KG-D6 block from April 2014, said the move “creates the possibility of potential arbitrariness”. “It could impact adversely on the investment climate, in the same way as retrospective tax amendments did,” it said.
The petroleum ministry blames the drop in production on RIL not drilling the committed quota of wells. RIL and its partner BP Plc of UK, on the other hand, say geological complexities such as a sudden fall in pressure accompanied by sand and water ingress led to the fall in output.
Production from the D1 and D3 fields declined to 10 million standard cubic meters per day (mmscmd) from 54 mmscmd in March 2010, instead of rising to the planned 80 mmscmd.
The ministry views RIL not drilling the committed quota of wells as a breach of contract and is imposing a $1.8 billion penalty. Now, it also proposes to deny RIL the new rate for domestically produced gas from April, when the price will double to $8.4 per million British thermal units.
“Taking specified fields outside the purview of general guidelines (for pricing) is a bad precedent. It creates the possibility of potential arbitrariness in policy in an area where we are otherwise trying hard to attract private investment and technology,” the Planning Commission wrote.
It said the penalty would be entirely appropriate if the shortfall was determined to be wilful or due to negligence.
“However, this must be determined in accordance with the terms prescribed in the Production Sharing Contract. From the cabinet note, it appears that even the determination of willfulness has not been established,” it said.
The operator, RIL, it said, has certainly not delivered as per the original plan but as provided in the contract, it has submitted a revised production plan with the reasons for non-performance.
The Planning Commission wanted the block oversight panel, called the management committee headed by the Directorate General of Hydrocarbons (DGH), to take a view on the revised plan before the matter is placed before the cabinet. The committee met earlier this month but refused to take a view on the revised field development plan for D1 and D3.
“There can be no doubt that if the due process laid down in the PSC leads to a penalty being determined for the shortfall, then it should be levied and enforced. If the contract allows for arbitration in the event of differences between the parties, then that is part of the process,” the Planning Commission said, advising the petroleum ministry to take the opinion of the law ministry.
SAT ASKS SEBI TO LOOK
AT RIL CONSENT PLEA; NEXT HEARING ON OCT 29
Mumbai: The Securities Appellate Tribunal (SAT) on Friday suggested that market regulator Sebi could look at considering the consent application of Reliance Industries to settle the 6-year-old insider-trading case against the firm, and adjourned the hearing to October 29.
SAT has been hearing the appeal filed by RIL against Sebi in the
insider-trading case related to its erstwhile subsidiary Reliance Petroleum Ltd
(RPL) dating back to 2007.
The company is also contesting the regulator's decision of last May to keep the
case out of the consent mechanism, suggesting the amount involved is too high.
Under Sebi's consent mechanism, companies can seek to settle cases with the
regulator after paying certain charges and disgorgement of any ill-gotten
gains.
Hearing the arguments, which have been adjourned eight times in recent past
alone, SAT presiding officer J P Devadhar said: "Without going into the
merits of the case, we want to know if Sebi can consider RIL's consent application
in the interest of justice."
In response to this, Sebi senior counsel Darius Khambata said he will inform
the tribunal after discussing the suggestion with the regulator.
Following this, SAT adjourned the further hearing on the petition to October
29.
The case dates back to 2007, when before the merger of the RPL with itself, RIL
sold 4.1 per cent stake in Reliance Petroleum for Rs 4,023 crore in the futures
market to allegedly prevent a price correction and later in the spot market,
covering the share sales in the futures market.
As per the Sebi findings, the company booked a profit of Rs 513 crore in the
futures segment through this deal. RPL was later merged with RIL.
Sebi claimed that the company was aware of the sale of shares and sold futures
ahead of that, therefore amounting to insider trading.
Following this Sebi ordered a probe and found that RIL had violated
insider-trading norms. Though it approached Sebi for consent settlement, the
regulator did not entertain the application, forcing RIL to move SAT.
At the last hearing on September 25, SAT had asked Sebi to produce the file on
the alleged RIL insider trading case and the notings of the committee that
decided to withdraw the company from the consent mechanism.
Under the consent mechanism companies/individuals can seek to settle cases with
paying a fine but without admitting to or denying any wrongdoing. In case the
allegations are proved, then a company may end up paying up to three times the
profit made from the illegal trade practices.
Accordingly, in the case of RIL, the company could pay over Rs 1,500 crore, as
it has been alleged that it booked Rs 513 crore from insider trading.
RIL has challenged the show-cause notice issued by Sebi in December 2010 citing
that it was not given adequate access to the documents on which the show-cause
was based.
RIL has also challenged Sebi for taking the case out of the consent process and
also for changing the norms governing this mechanism, especially when the case
was already under its consideration.
In May 2012, Sebi had tightened the consent mechanism framework. As a result,
many cases, including those related to insider trading, are not being settled
through this mechanism.
On January 3 this year, Sebi published a list of 149 consent pleas, including
16 from entities related to the RIL Group, which it had not found suitable for
consent settlement. These include applications of RIL itself and that of RIL
chairman Mukesh Ambani's close aide Manoj Modi.
At the last hearing, SAT had rejected an intervention petition filed in the
case by a little-known Urdu daily editor M Furquan who claimed that there could
be possible collusion between Sebi and RIL to settle the matter.
The matter was last heard by SAT on February 21, when the tribunal sought time
to study the application, which Sebi termed as "not maintainable".
Since then RIL has been seeking adjournments. The case has been adjourned every
month since March.
August 23, 2013
RIL-BP ANNOUNCE NEW DEEPWATER
GAS CONDENSATE DISCOVERY IN CAUVERY BASIN
Reliance Industries Limited (RIL) and BP today announced a new gas condensate discovery off the east coast of India in the Cauvery basin.
The discovery, in the deepwater block CY-DWN-2001/2 (CYD5), is situated 62 kilometers from the coast in the Cauvery Basin and is the second gas discovery in the block. RIL is the operator with 70% equity and BP has a 30% share. Well CYIIID5-S1 was drilled in a water depth of 1,743 meters, to a total depth of 5,731 meters, with the primary objective of exploring Mesozoic-aged reservoirs.
Preliminary evaluation of well data and fluid samples indicated presence of gas condensate in the reservoir interval with a gross column of 143 meters. The well reached its total depth in early August and RIL, as operator, has conducted drill stem test (“DST”) to evaluate the potential of the discovery. The well which had the initial reservoir pressure of 8000 psi flowed gas at the rate of 35.2 million standard cubic feet per day with condensate at the rate of 413 barrels per day through 52/64” choke during DST. Well flow rates during such tests are limited by the rig and well test equipment configuration.
The Government of India (GoI) and Directorate General of Hydrocarbons have been notified of the discovery, named D-56.
Notes to editors:
BP: With its many investments in India and employing over 8,500 people in the oil, gas, lubricants and petrochemicals businesses, BP has the largest presence among all international oil companies present in India. In addition to its gas alliance with Reliance Industries Limited., BP’s activities include: Castrol lubricants; the licensing of competitive petrochemical technologies; oil and gas trading; IT and procurement back office activities; staffing and training for its global marine fleet; and the recruitment of skilled Indian employees for its global businesses.
Reliance Industries Limited (RIL): Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with a turnover of INR 3711190.000 Millions (US$ 68.4 billion), cash profit of INR 305050.000 Millions (US$ 5.6 billion) and net profit of INR 210030.000 Millions (US$ 3.9 billion) as of March 31, 2013.
RIL SIGNS MOU WITH
ONGC ON EASTERN OFFSHORE FACILITY SHARING ARRANGEMENT
Mumbai, July 27, 2013: In a significant move that may open up new opportunities in India’s quest of energy security, Reliance Industries Limited (RIL) has inked a Memorandum of Understanding with the Oil and Natural Gas Corporation (ONGC) to explore the possibility of sharing RIL’s infrastructural facility in the East Coast.
In line with global practice of sharing infrastructure, the MoU aims at working out the modalities for sharing of infrastructure, identifying additional requirements as well as firming up the commercial terms.
This shall not only minimize ONGC’s initial Capex but also expedite its field development resulting in early monetization of its deep water fields adjacent to the fields of RIL.
The companies intend to enter into a definitive agreement after conducting a joint study which will be spread over the next nine months.
The MoU was signed by Mr. Naresh K Narang, Sr. Vice President, Development Projects, Petroleum EandP, RIL and Mr. Ashok Varma, Executive Director, Asset Manager Eastern Offshore Asset, ONGC in the presence of Mr. P.M. S Prasad, Executive Director, RIL and Mr. Sudhir Vasudeva, Chairman and Managing Director, Mr. P.K. Borthakur, Director (Offshore) and Mr. N K Verma, Director (Exploration) from ONGC.
Mr. Sudhir Vasudeva said that it is a win - win situation not only for both the companies which are striving hard to accrete new reserves and put them on production in the quickest time but also for energy starved nation. Mr. Vasudeva and Mr. Prasad agreed that today’s MoU is just the beginning and a herculean task of development still lies ahead of us.
About RIL
Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with a turnover of INR 371,1190.000 Millions (US$ 68.4 billion), cash profit of INR 30,5050.000 Millions (US$ 5.6 billion) and net profit of INR 21,0030.000 Millions (US$ 3.9 billion) as of March 31, 2013.
RIL is the first private sector company from India to feature in Fortune’s Global 500 list of 'World's Largest Corporations' and currently ranks 107th in terms of revenues and 128th in terms of profits in 2013. 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.
DGH SHIFTING GOALPOSTS TO STRIP OFF OUR DISCOVERIES: RIL
OCTOBER 06, 2013
RIL as per contractual requirement of retaining only the area where discoveries
have been made, had offered to give up or relinquish 5,367 square kilometers
out of the total 7,645 sq km area in the block
Reliance Industries Limited ( RIL ) has accused oil regulator DGH of shifting goalposts to strip off 8 gas discoveries holding 1.15 trillion cubic feet of reserves worth USD 14 billion from its eastern offshore KG-D6 block.
RIL as per contractual requirement of retaining only the area where discoveries have been made, had offered to give up or relinquish 5,367 square kilometers out of the total 7,645 sq km area in the block.
But the Directorate General of Hydrocarbons (DGH) wants another 1,130 sq km of area, which contains the 8 discoveries, to also be taken away from RIL on the grounds that the time line to develop the fields had expired.
RIL in a presentation to Oil Minister M Veerappa Moily and his top ministry brass last month, said it had not deviated an inch from the Production Sharing Contract (PSC) and had the right to retain the 1,130 sq km area.
If DGH is to carve out this area and auction it, the new company will not be able to produce from these before 8-10 years, it said.
RIL on the other hand plans to integrate the finds, which are small or marginal in nature and "unviable" on standalone basis, with other finds in the block and produce by 2017-18.
Of the eight discoveries in 1,130 sq km area, the DGH refused to consider investment plans for five, with 0.805 Tcf of reserves, saying they were not viable at the current price of USD 4.2 per million British thermal units.
The regulator refused to recognise the other three as discoveries in the absence of prescribed tests to confirm them and then disallowed pleas by Reliance and partner BP Plc for time to do the tests.
RIL said the declaration of commerciality (DoC) - a prerequisite before investment plans are considered - for D-29, 30 and 31 was "submitted in February 2010 and DGH raised requirement of DST (Drill Stem Test) after 8 months of DoC submission and around 40 months from discovery well."
"PSC also leaves selection of testing to the contractor's best technical judgment. Contractor conducted Modular Dynamic Test (MDT) and is of the opinion that DST is not required," it said, adding that to resolve the impasse and to expedite development of resources it has offered to carry out DST as well. For the balance five finds (D4, 7, 8, 16 and 23), it said DGH in March 209 found USD 4.2 price "uneconomical" for their development along with five other discoveries and asked RIL to optimise the field development plan.
RIL in December 2009 submitted a optimised field development plan, proposing to develop four finds (D2, 6, 19 and 22) first and balance 5 (D4, 7, 8, 16 and 23) later and disagreed with evaluation of USD 4.2 per mmBtu.
It said the development plan was neither denied nor withdrawn and so area of the five discoveries is valid and cannot be taken away.
On October 11, 2013, at 11:11 hrs Reliance Industries was quoting at Rs 856.70, down Rs 3.1, or 0.36 percent. The 52-week high of the share was Rs 954.80 and the 52-week low was Rs 761.00. The company's trailing 12-month (TTM) EPS was at Rs 67.55 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 12.68. The latest book value of the company is Rs 557.28 per share. At current value, the price-to-book value of the company was 1.54.
GOVERNMENT MAY APPT GLOBAL EXPERTS ON FALL IN KG-D6 GAS OUTPUT
OCTOBER 04, 2013
The appointment of an independent international expert, which RIL-BP have been pressing for several months now, would establish who is right and who is wrong.
Oil Minister M Veerappa Moily today hinted that the government may appoint an international expert to ascertain the reasons for sharp fall in natural gas production at Reliance Industries ' KG-D6 fields.
Also Read: The oil saga: Why Veerappa Moily's troubles have just begun "There are world renowned experts who definitely can go into these things and can come out with the truth. We don't want to prevent any truth from coming out," he told reporters on the sidelines of a conference organised by Indian Chamber of Commerce.
Oil regulator DGH has blamed RIL's failure to drill committed wells for the gas output falling by 80 percent to 10 million standard cubic metres per day from the main D1 and D3 fields in KG-D6 block, instead of rising to the planned 80 mmscmd. On the other hand, RIL and its partner BP plc of UK feel that the reserves have dropped one-third to under 3 trillion cubic feet due to previously unknown geological factors and the undrilled quota of 11 wells would not increase production.
Moily's ministry has been mulling appointing an international reservoir expert to ascertain facts. "Truth is truth, nobody can prevent it, nobody can manoeuvre it," he said adding his ministry was "consciously" working towards unravelling the truth.
DGH wants USD 1.786 billion penalty to be levied on RIL for its "failure" to produce projected quantity of gas as Oil Ministry in a parallel move wants the company to be denied the benefit of gas price revision upon expiry of current USD 4.2 per million British thermal unit rate in April 2014.
"The question is that if gas is available, yes gas is available. There experts who can find out," Moily said. Speaking at the conference, he said that his ministry will go "strictly according to the rules". "The government is not willing to deviate an inch from the Production Sharing Contract (PSC)," he said adding if one field was sick it did not mean the entire country was sick. A KG-D6 block oversight panel headed by DGH had earlier this week refused to take a view on appointing renowned reservoir consultants Ryder Scott, DeGolyer and MacNaughton (DandM), Gaffney, Cline and Associates (GCA) or Netherland, Sewell and Associates to validate reasons for the fall in gas output.
Oil Ministry officials - Aramane Giridhar, Joint Secretary (Exploration); S C Khuntia, Additional Secretary and Financial Advisor and VLVSS Subba Rao, Advisor (Finance) - attending the one-hour long MC meeting did not convey any decision. RIL-BP feel drilling of the remaining 11 wells would require over USD 1.65 billion investment while the currently available reserves can be produced by spending around USD 0.5 billion in repairs and compression of existing wells.
The appointment of an independent international expert, which RIL-BP have been pressing for several months now, would establish who is right and who is wrong, sources said.
On October 11, 2013, at 11:20 hrs Reliance Industries was quoting at Rs 856.70, down Rs 3.1, or 0.36 percent. The 52-week high of the share was Rs 954.80 and the 52-week low was Rs 761.00.
The company's trailing 12-month (TTM) EPS was at Rs 67.55 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 12.68. The latest book value of the company is Rs 557.28 per share. At current value, the price-to-book value of the company was 1.54.
RIL CRIES IT'S BEING PENALISED TWICE OVER
SEPTEMBER 29, 2013
Reliance Industries has said it is being punished twice over -- first by levy
of a USD 1.78 billion penalty and then by being denied a gas price revision,
for a single crime of not producing in line with projections that were not even
contractual commitments.
Reliance Industries has said it is being punished twice over -- first by levy of a USD 1.78 billion penalty and then by being denied a gas price revision, for a single crime of not producing in line with projections that were not even contractual commitments.
Also read: RIL slams DGH move to snatch gas discoveries as arbitrary
RIL and its partner BP plc on September 18 made a detailed presentation to Oil Minister M Veerappa Moily on issues around its main D1 and D3 fields in its eastern offshore KG-D6 block where output has fallen to less than a one-fifth to 10 million standard cubic meters per day instead of rising to 80 mmscmd.
Moily's ministry sees production not meeting stated targets are breach of contract and has levied USD 1.786 billion in penalty by way of disallowing cost incurred in past three fiscal. Also, it plans to deny RIL benefit of new price after the current USD 4.2 expires in April next year.
"A double penalty to the contractor: On one hand cost recovery being disallowed on the other market price being denied," RIL said in the presentation.
It said under the Production Sharing Contract (PSC), output figures in a development plan are only estimates and not commitments.
"There is no provision in the PSC that allows Government to penalise the contractor if production shortfall is caused by geological complexities," it said adding the contract allows RIL to recover all its costs.
On move to disallow new USD 8.4 per million British thermal unit price for gas from D1 and D3 fields, RIL said, "there appears to be significant contradiction to the government's positions with regards to PSUs who have been granted a nearly 2.5 times price increase despite shortfall in production.
"RIL said geological surprise has led to decline in production and subsequent downgrading of reserves.
Stating that it had on numerous occasions requested to appoint an independent international expert to verify its claims, the company said, "Reluctance to appoint a third party exert despite repeated requests and delay in approval of revised field development plan has led to a negative propaganda perpetrated by detractors."
The Directorate General of Hydrocarbons had in July recommended to the Oil Ministry that USD 781 million of the cost RIL has incurred in KG-D6 fields be disallowed for producing only an average of 26.07 million cubic meters per day of gas as against the target of 86.73 mmcmd in 2012-13.
This will be in addition to USD 1.005 billion in cost recovery already disallowed for output falling short of targets during 2010-11 and 2011-12.
Parallely, the Ministry is moving Cabinet to deny RIL a higher price of gas produced from D1andD3 fields till the dispute over the reasons for output not matching targets is resolved.
It wants the current rate of USD 4.2 to continue to apply for gas produced from Dhirubhai-1 (D1) and D3 fields even after expiry of the current term on March 31, 2014.
The government had in late June approved pricing of all domestically produced natural gas at an average of international hub rates and actual cost of LNG into India from next fiscal. The new rate, according to this formula, would be around USD 8.4 per mmBtu.
The new rates were to apply uniformly to gas from RIL fields as well as those of state-owned ONGC. Now, the Ministry wants the old rates to continue for D1 and D3 fields but the new price would apply to all other fields in the KG-D6 block including the currently producing MA oil and gas fields.
On October 11, 2013, at 11:25 hrs Reliance Industries was quoting at Rs 858.00, down Rs 1.8, or 0.21 percent. The 52-week high of the share was Rs 954.80 and the 52-week low was Rs 761.00.
The company's trailing 12-month (TTM) EPS was at Rs 67.55 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 12.7. The latest book value of the company is Rs 557.28 per share. At current value, the price-to-book value of the company was 1.54.
GOVERNMENT TO SOON PERMIT PRIVATE COS TO EXPLORE SHALE RESOURCES
SEPTEMBER 26, 2013
In the first phase, state-owned ONGC and OIL have been permitted to explore for and produce shale oil and gas from onland blocks that were allotted on a nomination basis before advent of the New Exploration Licensing Policy in 1999.
After allowing state-owned firms to explore shale oil and gas from their blocks, the government will soon permit private companies like Reliance Industries and Cairn India to find and produce shale resources.
"My first original draft (shale gas policy) was for a comprehensive policy involving exploration of shale resources by both public and private sector companies. But finance ministry had some constraints... so we bifurcated that allowing national oil companies first," Oil Minister M Veerappa Moily said on the sidelines of the HSE Conference organised by Cairn India here.
The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved the long-awaited shale gas and oil exploration programme to boost domestic output . In the first phase, state-owned ONGC and OIL have been permitted to explore for and produce shale oil and gas from onland blocks that were allotted on a nomination basis before advent of the New Exploration Licensing Policy in 1999.
The government will offer shale oil and gas blocks to other companies through an auction planned after such a policy is taken to the Cabinet for approval in the next few weeks.
The policy for allowing private firms to also explore and produce shale oil and gas "will come very soon," he said. Shale gas, or natural gas trapped in sedimentary rocks (shale formations) below the earth's surface, is the new focus area in the US, Canada and China as an alternative to conventional oil and gas for meeting growing energy needs.
As per available data, six basins -- Cambay (in Gujarat), Assam-Arakan (in the North-East), Gondawana (in central India), KG onshore (in Andhra Pradesh), Cauvery onshore and Indo-Gangetic basins, hold shale gas potential.
Various studies have estimated recoverable reserves of shale gas at between 6 trillion cubic feet and 63 trillion cubic feet.
Shale production will be taxed at par with conventional fields.
"Initially, I was in favour of an integrated shale gas policy but due to certain issues we decided to take the first step (of allowing state-owned firms to explore)," Moily said.
On October 11, 2013, at 11:35 hrs Reliance Industries was quoting at Rs 858.10, down Rs 1.7, or 0.2 percent.
The 52-week high of the share was Rs 954.80 and the 52-week low was Rs 761.00. The company's trailing 12-month (TTM) EPS was at Rs 67.55 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 12.7. The latest book value of the company is Rs 557.28 per share. At current value, the price-to-book value of the company was 1.54.
SAT ADJOURNS RIL INSIDER CASE HEARING TO OCTOBER 11
SEPTEMBER 25, 2013,
The SAT also declined to allow an intervention petition by an individual who had alleged that there could be collusion between Sebi and the Mukesh Ambani-led Reliance Industries to settle the case.
The Securities Appellate Tribunal (SAT) today and adjourned hearing to October 11 on Reliance Industries Limited 's (RIL) appeal against market regulator SEBI in the long-running insider trading case.
Read more: Sebi looks to strengthen insider trading norms
The SAT also declined to allow an intervention petition by an individual who had alleged that there could be collusion between Sebi and the Mukesh Ambani-led Reliance Industries to settle the case.
Rejecting the plea, the SAT asked him to approach the Bombay High Court or the Supreme Court, saying the tribunal is not the appropriate forum to hear such a plea.
Meanwhile, the tribunal continued the final arguments in the seven-year-old case between Sebi and the country's largest corporate entity. RIL counsel Janak Dwarkadas making the final arguments said his client has not yet received all relevant documents from the regulator, a claim disputed by Darius Khambata, the Advocate General, appearing for Sebi, who instead asked RIL to file an affidavit stating so.
Khambata alleged that all these are time-buying tactics by RIL.
The SAT adjourned the matter to October 11 when Khambata will conclude his arguments. The capital market watchdog has been maintaining that RIL's appeal against its order is "not maintainable".
The matter relates to RIL's appeal against Sebi in a case related to alleged violation of insider trading norms in sale of shares of its erstwhile subsidiary Reliance Petroleum (RPL) in 2007. RPL was later merged with RIL. RIL had approached SAT against Sebi after its application to settle the matter through a 'consent mechanism' was rejected by the regulator. Under Sebi's consent mechanism, companies can seek to settle cases with the regulator after paying certain charges and disgorgement of any ill-gotten gains.
On October 11, 2013, at 11:47 hrs Reliance Industries was quoting at Rs 860.60, up Rs 0.80, or 0.09 percent. The 52-week high of the share was Rs 954.80 and the 52-week low was Rs 761.00.
The company's trailing 12-month (TTM) EPS was at Rs 67.55 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 12.74. The latest book value of the company is Rs 557.28 per share. At current value, the price-to-book value of the company was 1.54.
OILMIN SEEKS LEGAL OPINION ON LEVYING $781MN PENALTY ON RIL
SEPTEMBER 12, 2013
Oil Secretary Vivek Rae said the government has already issued a notice to RIL for a USD 1.005 billion penalty for shortfall in production during 2010-11 and 2011-12. The Mukesh Ambani-run firm has initiated arbitration against the levy.
The Oil Ministry has sought legal opinion on levying an additional penalty of USD 781 million on Reliance Industries for failing to produce pre stated volumes of natural gas from its flagging KG-D6 field in 2012-13.
Oil Secretary Vivek Rae said the government has already issued a notice to RIL for a USD 1.005 billion penalty for shortfall in production during 2010-11 and 2011-12. The Mukesh Ambani-run firm has initiated arbitration against the levy.
"We have already issued a notice for the penalty of USD 1 billion. For 2012-13, we are examining what needs to be done, whether the higher penalty is to be imposed and if so in what manner. We are seeking the advise of the Law Ministry right now," he told reporters here.
Also Read: Govt move to force old gas price for KG-D6 gas illegal: RIL
The Directorate General of Hydrocarbons had in July recommended to the Oil Ministry that USD 781 million of the cost RIL has incurred in KG-D6 fields be disallowed for producing only an average of 26.07 million cubic meters per day of gas as against the target of 86.73 mmcmd in 2012-13.
This will be in addition to USD 1.005 billion in cost recovery already disallowed for output falling short of targets during 2010-11 and 2011-12.
The arbitration has not begun because the two arbitrators appointed by RIL and the government are yet to agree on a neutral presiding judge for the proceedings.
CPI leader Gurudas Dasgupta has previously alleged that Oil Minister M Veerappa Moily was scuttling the arbitration proceedings but when RIL moved the Supreme Court seeking appointment of the third arbitrator at the earliest, he too moved the Apex Court seeking stay on the arbitration proceedings. Officials said since arbitration proceedings on the previous penalty issue are yet to commence, it was thought prudent to seek opinion of the Law Ministry on levying further penalty.
DGH blames RIL for not drilling its committed quota of wells for the fall in production that has resulted in a large chunk of production facilities lying unused or under-utilised.
RIL has built infrastructure to handle 80 mmscmd of output but is currently producing less than 14 mmscmd.
As per the production sharing contract, RIL and its partners BP Plc and Niko Resources are allowed to deduct all of the capital and operating expenses from sale of gas before sharing profits with the government.
Creation of excess or unutilised infrastructure impacts government's profit share and this is being sought to be corrected by disallowing part of the cost.
DGH, the official said, stated that after cost disallowance, RIL would be required to pay USD 114 million in additional profit petroleum to the government for 2012-13 in addition to USD 103 million that was already due.
RIL and its partners have so far undertaken USD 5.768 billion investment in developing the Dhirubhai-1 and 3 (D1andD3) gas field in KG-D6 block and another USD 1.74 billion in the MA oilfield in the same area. Another USD 1.774 billion has been spent as production expenses or operating cost.
The Ministry had in May 2012 slapped a notice disallowing USD 457 million of cost till 2010-11 and USD 1.005 billion till 2011-12.
The average gas production from KG-DWN-98/3 (KG-D6 block) during the current year should have been 86.92 mmcmd as per the approved field development plans for D1, D3 and MA fields in this block, which are currently on production. The output has dropped after hitting a peak of about 62 mmcmd in August 2010.
The production has fallen as half of the wells of D1 and D3 and a third of those in MA field have shut due to water loading/sand ingress. Additionally, DGH blames RIL for not drilling all of its committed 31 wells on D1 and D3.
RIL on the other hand attributes the fall to substantial variance in reservoir behaviour and character than previously predicted sharp decline in pressure and early water production in some wells.
On October 11, 2013, at 11:58 hrs Reliance Industries was quoting at Rs 858.85, down Rs 0.95, or 0.11 percent. The 52-week high of the share was Rs 954.80 and the 52-week low was Rs 761.00.
The company's trailing 12-month (TTM) EPS was at Rs 67.55 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 12.71. The latest book value of the company is Rs 557.28 per share. At current value, the price-to-book value of the company was 1.54.
ONGC MULLS USING RIL INFRA FOR GAS PRODUCTION
SEPTEMBER 11, 2013
ONGC wants to see if RIL's KG-D6 gas field gathering and processing facilities in the Bay of Bengal can be used to for producing gas from its G-4 discovery in the Krishna Godavari basin.
Oil and Natural Gas Corporation (ONGC) is likely to hire Norway's Aker Solutions to study feasibility of using Reliance Industries ' unutilised production facilities off the Andhra coast for producing gas from its discoveries in the region.
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ONGC wants to see if RIL's KG-D6 gas field gathering and processing facilities in the Bay of Bengal can be used to for producing gas from its G-4 discovery in the Krishna Godavari basin, top company officials said. G-4 gas field lies about 10-km away from RIL's facilities in the offshore.
Aker Solutions is likely to be hired to see the economic and technical feasibility of laying a pipeline to take the gas from G-4 field to RIL's offshore gas gathering and then to its landfall facilities at Gadimoga near Kakinada. ONGC had in July signed a memorandum of understanding (MoU) with RIL to explore the possibility of sharing Mukesh Ambani-run firm's infrastructural facility in the East Coast.
Officials said before hiring Aker, ONGC is referring the issue to CVC as the Norwegian firm is also likely to be a bidder for G-4 field development contracts. Once CVC clears, Aker will be hired. If successful, the same concept will be explored for the nine gas discoveries in ONGC's KG block KG-DWN-98/2, which sits next to RIL's flagging KG-DWN-98/3 or KG-D6 block.
ONGC, they said, wants to develop G-4 together with the finds in the northern part of its KG-DWN-98/2 block by 2017. Instead of putting separate gas processing and transportation facilities, ONGC is looking to hire RIL's under-utilised gas gathering station at KG-D6 fields along with pipelines that take the fuel to onland as also its processing plant at Kakinada in Andhra Pradesh. RIL has pipeline and other facilities capable of handling gas output of 80 million standard cubic meters per day.
KG-D6 output has dipped to below 14 mmscmd from 69 mmscmd achieved in March 2010 and the company indicated it may never touch 80 mmscmd due to unexpected geological complexities. ONGC aims to cut capital expenditure as also expedite field development by using RIL's infrastructure. The infrastructure sharing would help in early monetisation of its deep water fields adjacent to the fields of RIL, they said.
It plans to produce about 6-9 mmscmd of gas from G-4 and D and E fields in KG-DWN-98/2 block in the first phase. ONGC has found 4.85 trillion cubic feet of gas reserves in nine gas discoveries it has made in the Krishna-Godavari basin block KG-DWN-98/2. The block is targeted for production by 2016-17 and a peak production of 22 mmscmd is envisaged.
Gas from these is proposed to be produced by combining them with a gas discovery in the adjacent block. The Northern Discovery Area (NDA) consists of the Padmawati, Kanakadurga, Annapurna, D/KT, U, A, W and E gas finds in water depths ranging from 594 metres to 1,283 m. The Southern Discovery Area consisting of the UD-1 discovery falls in ultra-deepwater with a depth of 2,841 m.
On October 11, 2013, at 12:03 hrs Oil and Natural Gas Corporation was quoting at Rs 277.55, up Rs 4.20, or 1.54 percent. The 52-week high of the share was Rs 354.10 and the 52-week low was Rs 234.40.
The company's trailing 12-month (TTM) EPS was at Rs 22.05 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 12.59. The latest book value of the company is Rs 145.47 per share. At current value, the price-to-book value of the company was 1.91.
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER/HALF YEAR ENDED 30th SEPTEMBER
2013
(Rs. in Millions)
|
Sr. No. |
Particulars |
30.09.2013 |
30.06.2013 |
|
1 |
Income from Operations |
|
|
|
|
(a) Net Sales/Income from operations (Net of excise duty and service tax ) |
10375800.000 |
876450.000 |
|
|
Total income from
operations (net) |
1037580.000 |
876450.000 |
|
2 |
Expenses |
|
|
|
|
(a) Cost of materials consumed |
883650.000 |
737290.000 |
|
|
(b) Purchases of stock-in- trade |
1160.000 |
3920.000 |
|
|
(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(1850.000) |
(7460.000) |
|
|
(d) Employee benefits expense |
8080.000 |
8990.000 |
|
|
(e) Depreciation and amortization expense |
22330.000 |
21380.000 |
|
|
(f) Other expenses |
68050.000 |
62960.000 |
|
|
Total Expenses |
981420.000 |
827080.000 |
|
3 |
Profit from operations before other income, finance costs |
56160.000 |
49370.000 |
|
4 |
Other Income |
20600.000 |
25350.000 |
|
5 |
Profit from ordinary activities before finance costs |
76760.000 |
74720.000 |
|
6 |
Finance costs |
8050.00 |
8100.000 |
|
7 |
Profit from
ordinary activities before tax |
68710.000 |
66620.000 |
|
8 |
Tax expense |
13810.000 |
13100.000 |
|
9 |
Net Profit for the
Period |
54900.000 |
53520.000 |
|
10 |
Paid up Equity Share Capital, Equity Shares of T 10/- each. |
32310.000 |
32290.000 |
|
11 |
Reserves excluding revaluation reserves |
|
|
|
12 |
Earnings per share
(Face value of T 10) |
|
|
|
|
(a) Basic |
17.0 |
16.6 |
|
|
(b) Diluted |
17.0 |
16.6 |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
1 |
Public shareholding
(including GDR holders) |
|
|
|
|
- Number of Shares |
176.67 |
176.55 |
|
|
- Percentage of Shareholding (%) |
54.69 |
54.67 |
|
2 |
Promoters and
Promoter Group shareholding |
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
- Number of shares |
|
|
|
|
- Percentage of shares (as a % of the total shareholding of Promoters and Promoter Group) |
-- |
- |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
-- |
- |
|
|
b) Non - Encumbered |
|
|
|
|
- Number of shares |
146.39 |
146.39 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoters and Promoter Group) |
100 |
100 |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
45.31 |
45.33 |
Notes:
1. The figures for the previous periods have been restated/regrouped wherever necessary, to make them comparable.
2. The Scheme of amalgamation of Reliance Jamnagar Infrastructure Limited (RJIL), with the company became effective on 22nd October 2012. In view thereof, the figure for corresponding quarter/ half year has been reworked and re-stated giving effect to the amalgamation of Reliance Jamnagar Infrastructure Limited (RJIL).
3. 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 ` 925 crore ($ 148 million) for the half year ended 30th September 2013 which has been withdrawn from the Reserves. This has no impact on the profit for the half year ended 30th September 2013.
4. 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.
5. 3 investor complaints were pending as on 1st July, 2013 and during the quarter 1,237 complaints were received. All complaints were resolved and no complaints were outstanding as on 30th September 2013.
6. The audit committee reviewed the above results. The Board of Directors at its meeting held on 14th October 2013 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 / half year ended 30th September 2013.
STANDALONE STATEMENT OF ASSETS AND LIABILITIES
|
SOURCES OF FUNDS |
30.09.2013 |
|
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
32310.000 |
|
(b) Reserves & Surplus |
1868080.000 |
|
Subtotal -
Shareholders' funds |
1900390.000 |
|
|
|
|
(2) Share Application money pending allotment |
150.000 |
|
|
|
|
(3) Non-Current
Liabilities |
|
|
(a) long-term borrowings |
526900.000 |
|
(b) Deferred tax liabilities (Net) |
120570.000 |
|
Total Non-current
Liabilities (3) |
647470.000 |
|
|
|
|
(4) Current
Liabilities |
|
|
(a) Short term borrowings |
147350.000 |
|
(b) Trade payables |
591570.000 |
|
(c) Other current liabilities |
211700.000 |
|
(d) Short-term provisions |
13950.000 |
|
Total Current
Liabilities (4) |
964570.000 |
|
|
|
|
TOTAL- EQUITY AND LIABILITIES |
3512580.000 |
|
|
|
|
ASSETS |
|
|
(1) Non-current
assets |
|
|
(a) Fixed Assets |
1430390.000 |
|
(b) Non-current Investments |
312100.000 |
|
(c) Deferred tax assets (net) |
245490.000 |
|
(d) Long-term Loan and Advances |
245490.000 |
|
Total Non-Current
Assets |
1987980.000 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
349510.000 |
|
(b) Inventories |
470770.000 |
|
(c) Trade receivables |
110160.000 |
|
(d) Cash and cash equivalents |
434290.000 |
|
(e) Short-term loans and advances |
153630.000 |
|
(f) Other current assets |
6240.000 |
|
Total Current
Assets |
1524600.000 |
|
|
|
|
TOTAL ASSETS |
3512580.000 |
UNAUDITED STANDALONE
SEGMENT INFORMATION FOR THE QUARTER / HALF YEAR ENDED 30th SEPTEMBER
2013
(Rs. in Millions)
|
Sr. No. |
Particulars |
30.09.2013 |
30.06.2013 |
|
|
|
|
|
|
1. |
Segment Revenue |
|
|
|
|
- Petrochemicals |
248920.000 |
219500.000 |
|
|
- Refining |
974560.000 |
814580.000 |
|
|
- Oil and Gas |
14640.000 |
14540.000 |
|
|
- Others |
3300.000 |
6160.000 |
|
|
Gross Turnover (Turnover and Inter
Segment Transfers) |
1241420.000 |
1054780.000 |
|
|
Less: Inter Segment Transfers |
176190.000 |
148890.000 |
|
|
Turnover |
1065230.000 |
905890.000 |
|
|
Less: Excise Duty / Service Tax Recovered |
27650.000 |
29440.000 |
|
|
Net Turnover |
1037580.000 |
876450.000 |
|
2. |
Segment Results |
|
|
|
|
- Petrochemicals |
25040.000 |
18880.000 |
|
|
- Refining |
31740.000 |
29510.000 |
|
|
- Oil and Gas |
3560.000 |
3520.000 |
|
|
- Others |
420.000 |
840.000 |
|
|
Total Segment
Profit before Interest and Tax |
60760.000 |
52750.000 |
|
|
(i) Interest Expense |
(8050.000) |
(8100.000) |
|
|
(ii) Interest Income |
15510.000 |
16280.000 |
|
|
(iii) Other Un-allocable Income Net of Expenditure |
490.000 |
5690.000 |
|
|
Profit before Tax |
68710.000 |
66620.000 |
|
|
(i) Provision for Current Tax |
(14360.000) |
(13910.000) |
|
|
(ii) Provision for Deferred Tax |
550.000 |
810.000 |
|
|
Profit after Tax |
54900.000 |
53520.000 |
|
3. |
Capital Employed |
|
|
|
|
(Segment Assets -
Segment Liabilities) |
|
|
|
|
- Petrochemicals |
426960.000 |
394760.000 |
|
|
- Refining |
615630.000 |
604590.000 |
|
|
- Oil and Gas |
295260.000 |
276510.000 |
|
|
- Others |
274630.000 |
239930.000 |
|
|
- Unallocated Corporate |
1248450.000 |
1257840.000 |
|
|
Total Capital Employed |
2860930.000 |
2773630.000 |
Notes to Segment
Information for the Quarter/ Half Year Ended 30th September 2013
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”.
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 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 r 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.61.50 |
|
|
1 |
Rs.99.49 |
|
Euro |
1 |
Rs.84.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
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 |
NO |
|
--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.