MIRA
INFORM REPORT
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Report Date : |
18.09.2013 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE INDUSTRIES LIMITED |
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Registered
Office : |
3rd Floor, Maker Chamber IV, 222, Nariman Point, Mumbai – 400021, |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
08.05.1973 |
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Com. Reg. No.: |
11-019786 |
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Capital
Investment / Paid-up Capital : |
Rs.32290.000 Millions |
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CIN No.: [Company Identification
No.] |
L17110MH1973PLC019786 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMRO9795C MUMR00462A |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer and
Marketer of Fabrics, Polyester Filament Yarn, Polyester Staple Fibres, PTA,
LAB, Ethylene Glycol, PVC, PE, PP, Crude Oil, Gas, Norman Paraffin, Fibre
Fill, Ethylene, Propylene, Benzene, Xylene and Toluene. |
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No. of Employees
: |
23519 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (80) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
Large |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a
well-established and a reputed company having excellent track 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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
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
|
Name : |
Mr. Mukesh D.
Ambani |
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Designation : |
Chairman and Managing Director |
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Date of
Appointment: |
31.07.2002 |
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Qualification: |
Chemical Engineer from |
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Name : |
Mr. Nikhil R.
Meswani |
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Designation : |
Executive Director |
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Appointment: |
Since 1990 |
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Qualification: |
Chemical Engineer |
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Name : |
Mr. Hital R.
Meswani |
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Designation : |
Executive Director |
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Name : |
Mr. P.M.S.
Prasad |
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Designation : |
Executive Director |
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Name : |
Mr. Pawan Kumar Kapil |
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Designation : |
Executive Director |
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Name : |
Mr. Ramiklal H.
Ambani |
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Designation : |
Non Executive Director |
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Name : |
Mr. Mansingh L.
Bhakta |
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Designation : |
Non Executive Director |
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Name : |
Mr. Yogendra P.
Trivedi |
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Designation : |
Non Executive Director |
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Name : |
Dr. Dharam Vir
Kapur |
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Designation : |
Non Executive Director |
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Name : |
Mr. Mahesh P.
Modi |
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Designation : |
Non Executive Director |
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Name : |
Prof. Ashok Mishra |
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Designation : |
Non Executive Director |
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Name : |
Prof. Dipak C. Jain |
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Designation : |
Non Executive Director |
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Name : |
Dr. Raghunath A. Mashelkar |
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Designation : |
Director |
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Date of
Appointment : |
09.06.2007 |
KEY EXECUTIVES
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Name : |
Mr. K. Sethuraman |
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Designation : |
Group Company Secretary and Chief Compliance Officer |
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Name : |
Mr. Kanga and Company |
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Designation : |
Solicitors and Advocates |
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Audit Committee
: |
Mr. Yogendra P.
Trivedi (Chairman) |
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Mr. Mahesh P.
Modi |
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Dr. Raghunath A. Mashelkar |
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Corporate
Governance and Stakeholders' Interface Committee : |
Mr. Yogendra P.
Trivedi (Chairman) |
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Mr. Mahesh P.
Modi |
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Dr. Dharam Vir
Kapur |
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Employees Stock Compensation
Committee : |
Mr. Yogendra P.
Trivedi (Chairman) |
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Mr. Mukesh D.
Ambani |
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Mr. Mahesh P.
Modi |
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Prof. Dipak C.
Jain |
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Finance
Committee : |
Mr. Mukesh D.
Ambani (Chairman) |
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Mr. Nikhil R.
Meswani |
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Mr. Hital R.
Meswani |
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Health, Safety
and Environment
Committee : |
Mr. Hital R.
Meswani (Chairman) |
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Dr. Dharam Vir
Kapur |
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Mr. P.M.S.
Prasad |
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Mr. Pawan Kumar
Kapil |
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Remuneration Committee
: |
Mr. Mansingh L.
Bhakta (Chairman) |
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Mr. Yogendra P.
Trivedi |
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Dr. Dharam Vir
Kapur |
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Dr. Raghunath A. Mashelkar |
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Shareholders'/Investors' Grievance
Committee : |
Mr. Mansingh L.
Bhakta (Chairman) |
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Mr. Yogendra P. Trivedi |
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Mr. Nikhil R.
Meswani |
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Mr. Hital R.
Meswani |
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Prof. Ashok Misra |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholder |
Total No. of
Shares |
Total Shareholding
as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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(1) Indian |
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|
21172646 |
0.68 |
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1322298328 |
42.42 |
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120471003 |
3.87 |
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120471003 |
3.87 |
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|
1463941977 |
46.97 |
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Total shareholding
of Promoter and Promoter Group (A) |
1463941977 |
46.97 |
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(B) Public
Shareholding |
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|
69597036 |
2.23 |
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|
4449175 |
0.14 |
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|
3198144 |
0.10 |
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|
297021647 |
9.53 |
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|
560181229 |
17.97 |
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5 |
0.00 |
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|
934447236 |
29.98 |
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|
148972038 |
4.78 |
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|
340311509 |
10.92 |
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|
25294213 |
0.81 |
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|
203973008 |
6.54 |
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|
21360330 |
0.69 |
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|
4453754 |
0.14 |
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|
171883624 |
5.51 |
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|
6275300 |
0.20 |
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|
718550768 |
23.05 |
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Total Public
shareholding (B) |
1652998004 |
53.03 |
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Total (A)+(B) |
3116939981 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
112493092 |
0.00 |
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|
112493092 |
0.00 |
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Total (A)+(B)+(C) |
3229433073 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and
Marketer of Fabrics, Polyester Filament Yarn, Polyester Staple Fibres, PTA,
LAB, Ethylene Glycol, PVC, PE, PP, Crude Oil, Gas, Norman Paraffin, Fibre Fill,
Ethylene, Propylene, Benzene, Xylene and Toluene. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
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Refining of Crude
Oil |
|
N.A. |
60 |
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Ethylene |
MT |
N.A. |
1883400 |
|
Propylene |
MT |
N.A. |
759800 |
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Benzene |
MT |
N.A. |
730000 |
|
Toluene |
MT |
N.A. |
197000 |
|
Xylene |
MT |
N.A. |
165000 |
|
Hydro Cynic Acid ' |
MT |
3600 |
3600 |
|
Ethane Propane
Mix |
MT |
N.A. |
450000 |
|
Caustic Soda Lye
/ Flakes |
MT |
N.A. |
168000 |
|
Chlorine |
MT |
N.A. |
141200 |
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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 |
|
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 |
|
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 |
|
Poly Ethylene
Terephthalate |
MT |
N.A. |
290,000 |
|
Polyester Staple
Fibre Fill |
MT |
N.A. |
42,000 |
|
Man-made Fibre Spun
Yarn on worsted system |
Nos |
N.A. |
24,094 |
|
Man-made fibre
on cotton system (Spindles) |
Nos |
N.A. |
23,040 |
|
Man-made Fabrics
(Looms) |
Nos |
N.A. |
263 |
|
Knitting M/C |
Nos |
22 |
20 |
|
Solar
photovoltaic modules |
M.W |
N.A. |
30 |
PRODUCTION MEANT FOR SALE (AS ON 31.03.2011)
|
Products |
Unit |
2010-11 |
|
Crude Oil |
MT |
1306057 |
|
Gas |
BBTU |
564312 |
|
Petroleum Products |
‘000 MT |
51525 |
|
Ethylene |
MT |
27 |
|
Propylene |
MT |
6895 |
|
Benzene |
MT |
605200 |
|
Toluene |
MT |
102036 |
|
Caustic Soda lye / Flakes |
MT |
128631 |
|
Acrylonitrile |
MT |
37608 |
|
Linear Alkyl Benzene |
MT |
162667 |
|
Butadiene |
MT |
96158 |
|
Cyclohexane |
MT |
46195 |
|
Paraxylene |
MT |
486896 |
|
Orthoxylene |
MT |
399831 |
|
Poly Vinyl Chloride |
MT |
630780 |
|
Polyethylene |
MT |
970017 |
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High Density Polyethylene Pipes
|
Mtrs. In lacs |
93 |
|
Poly Butadiene Rubber |
MT |
75261 |
|
Polypropylene |
MT |
2496099 |
|
Ethylene Glycol |
MT |
265244 |
|
Purified Terephthalic Acid |
MT |
622097 |
|
Polyester Filament Yarn |
MT |
810433 |
|
Polyester Staple Fibre |
MT |
631023 |
|
Poly Ethylene Terephthalate |
MT |
352668 |
|
Polyester Staple Fibre Fill |
MT |
69614 |
|
Fabrics |
Mtrs. in Lacs |
180 |
GENERAL INFORMATION
|
No. of Employees : |
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.32305.421
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 |
|||
|
Presentation Date:- 28/06/2013 |
|||
|
Stamp No.:- WPST/17598/2013 |
Filing Date:- 28/06/2013 |
Reg. No.:- WP/6096/2013 |
Reg. Date:- 11/07/2013 |
|
Petitioner:- M/S. SWASTIK INDUSTRIES- |
Respondent:- M/S. RELIANCE INDUSTRIES LTD |
||
|
Petn.Adv.:- M/S. SHAH AND SANGHAVI |
Resp.Adv.:- M/S. PURNANAND AND CO. |
||
|
District:- MUMBAI |
|||
|
Bench:- SINGLE |
|||
|
Status:- Pre-Admission |
|||
|
Next Date:- 25/07/2013 |
Stage:- FOR ADMISSION - CIRCULATION (CIVIL SIDE MATTERS) |
||
|
Coram:- HON'BLE SHRI JUSTICE RAVI K. DESHPANDE |
|||
|
Last Date:- 16/07/2013 |
Stage:- FOR ADMISSION - CIRCULATION (CIVIL SIDE MATTERS) |
||
|
Last Coram:- HON'BLE SHRI JUSTICE RAVI K. DESHPANDE |
|||
|
Act :- C.P.C.- (Interlocutory Order) |
|||
|
CHARGES |
|||
|
ENTITY |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY
ACTION(S) / DATE OF ORDER |
|
RELIANCE INDUSTRIES |
EPFO |
EXEMPTED AND UNEXEMPTED ESTABLISHMENTS DEFAULTED WITH EPFO INCLUDING PROVIDENT FUND, PENSION AND EDLI CONTRIBUTION, ADMINISTRATION CHARGES AND PENAL DAMAGES OF RS.8.355 MILLIONS |
AMONG OTHER ACTIONS, NAMES OF DEFAULTERS PUT ON THE EPFO
WEBSITE |
UNSECURED LOAN
(Rs.
Millions)
|
Particular |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long Term
Borrowings |
|
|
|
Bonds |
90660.000 |
45640.000 |
|
Term Loans- from banks |
319510.000 |
372690.000 |
|
Deferred payment liabilities |
60.000 |
90.000 |
|
Short Term
Borrowings |
|
|
|
Other Loans and
Advances |
|
|
|
From Banks |
|
|
|
Foreign Currency Loans - Buyers/Packing credit |
109780.000 |
97360.000 |
|
Rupee Loans |
1000.000 |
1000.000 |
|
|
|
|
|
Total |
521010.000 |
516780.000 |
RESULTS OF OPERATIONS
The global economy in the Financial Year (FY) 2012-13 improved slowly, but was short on expectations. Several
European economies experienced recession due to high unemployment, banking fragility, fiscal tightening and sluggish growth. The U.S. economy improved marginally, driven mainly by housing and the consumer sectors; however, capital investments remained sluggish. Among the Asian economies, China going through a political transition, experienced considerably slow growth. Deceleration in industrial output and exports weakened India’s economic growth significantly.
FY 2012-13 proved to be a challenging year amidst global economic uncertainties and disturbances in many parts of the world. Despite these constraints and challenging environment, the Company performed reasonably well and the highlights of the performance are as under:
· Revenue from operations increased by 9.2% to Rs. 3711190.000 Millions ($68.4 billion)
· Exports increased by 15% to Rs. 2392260.000 Millions ($ 44.1 billion)
· PBDIT decreased by 2.6% at Rs. 387850.000 Millions ($ 7.1 billion)
· Profit Before Tax increased by 2.1% at Rs. 262840.000 Millions ($ 4.8 billion)
· Cash Profit was at Rs. 305050.000 Millions ($ 5.6 billion)
· Net Profit increased by 4.8% to Rs. 210030.000 Millions ($3.9 billion)
· Gross Refining Margin was $ 9.2 / bbl for the year ended March 31, 2013
The Company is one of India’s largest contributors to the national exchequer primarily by way of payment of taxes and duties to various government agencies. During the year, a total of Rs. 289500.000 Millions ($ 5.3 billion) was paid in the form of various taxes and duties.
The Company featured in the Fortune Global 500 list of the world’s largest corporations for the eighth consecutive year. The company was ranked 99th based on sales and 130th based on profits.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
OVERVIEW
The global economy in FY 2012-13 improved slowly and did not recover to the extent anticipated in the beginning of the year. Several European economies experienced recession due to high unemployment, banking fragility, fiscal tightening and sluggish growth. The U.S. economy improved marginally, driven mainly by housing and the consumer sectors; however, capital investments remained sluggish. Among the Asian economies, China, going through a political transition, experienced considerably slower growth. Deceleration in industrial output and exports weakened India’s economic growth significantly. The weak macro environment and slower growth caused the margin environment to remain volatile with downward bias.
Oil demand increased by 0.9 MMBPD in 2012. Eurozone’s recession and emerging markets slowdown weakened global economy, which in turn, impacted demand growth. Increased production, particularly in North America and Iraq, helped meet this demand, partly offset by decreasing supply from some Middle Eastern countries, especially Iran and Syria. The average Brent crude oil price increased marginally in 2012 to reach $111.6 per barrel.
Reliance Industries Ltd. (RIL) demonstrated its ability to perform in this challenging environment and enhanced its revenues by 9.2% to Rs. 3711190.000 Millions and profits by 4.8% to Rs. 210030.000 Millions. RIL achieved record exports (15% higher) at Rs. 2392260.000 Millions, as against Rs. 2080420.000 Millions in FY 2011-12. RIL’s consolidated revenue from operations for the year ended March 31, 2013 was Rs. 3970620.000 Millions, an increase of 10.8% on a year on year (Y-o-Y) basis.
RIL’s KG-D6 facility, completing four years of operations, produced 3.31 million barrels (MMBL) of crude oil and condensate and 336 billion cubic feet (BCF) of natural gas. In the downstream segments, RIL maintained operating rates over 100% in the refining and petrochemicals businesses. The Company processed a record 68.5 million tonnes (MMT) of crude at its Jamnagar refinery complex. RIL’s performance can be attributed to its strong integrated business model, wide product portfolio and increasing demand for its products. RIL’s facilities continued to deliver operating excellence and this is a true testimony of the quality of its manufacturing assets and human talent. RIL was featured in the Fortune Global 500 list of the world’s largest corporations for the eighth consecutive year. It was ranked 99th based on sales and 130th based on profits.
RIL-BP Partnership
In its second year of the partnership, RIL and BP combined their expertise in deepwater exploration and development and operations in India. Both the teams worked closely to understand the complex geology of the east-coast of India including KG-D6 block. The efforts are on, to map out an exploration and development campaign that will efficiently target high quality prospects in deeper zones and optimize existing as well as future development plans.
The Company is creating a projects pipeline for the next wave of oil and gas development, which includes satellite discoveries in KG-D6 block. Under the block’s enhancement plan, the Company aims to invest in a series of projects to develop around 4 trillion cubic feet (TCF) of discovered natural gas resources over the next 3-5 years. These project implementations in the KG-D6 enhancement plan are subject to the timely regulatory and Government approvals. At current international Liquefied Natural Gas (LNG) prices, it would cost over $ 50 billion to import this gas volume into India. Gas from these projects will deliver energy to millions of Indians and would significantly help India reduce import dependence.
FINANCIAL PERFORMANCE
The net profit for FY 2012-13 was at Rs. 210030.000 Millions ($ 3.9 billion) with a compounded annual growth rate (CAGR) of 18% over the past 10 years. RIL has announced a dividend of 90% amounting to Rs. 30920.000 Millions ($ 570 million), including dividend distribution tax. This is the highest pay-out ever by RIL and in line with its prudent distribution commitment.
Highlights of RIL’s consolidated performance for the year are as follows:
· Revenue from operations increased by 10.8% to Rs. 3970620.000 Millions ($ 73.1 billion)
· PBDIT increased by 0.5% to Rs. 409120.000 Millions ($ 7.5 billion)
· Profit Before Tax increased by 3.2% to Rs. 261500.000 Millions ($ 4.8 billion)
· Cash Profit decreased by 1.5% to Rs. 321150.000 Millions ($ 5.9 billion)
· Net Profit increased by 5.9% to Rs. 208790.000 Millions ($ 3.8 billion)
RIL continued to play a pivotal role in the growth of India’s economy. It accounted for:
· 14% of country’s exports (RIL exports at $ 44.1 billion)
· 4.8% of indirect tax revenues
· 4% of total market capitalisation
· Weightage of 8.6% in the Bombay Stock Exchange (BSE) Sensex
· Weightage of 7.0% in the National Stock Exchange (NSE) Nifty
FINANCIAL REVIEW
RIL delivered superior financial performance with improvements across key parameters. RIL achieved a Revenue from operations for the year ended 31st March 2013 of Rs. 371,119 Millions ($ 68.4 billion), an increase of 9.2% on a Y-o-Y basis. The Refining business revenues increased by 11.6%, Petrochemicals by 9.3% while Oil and Gas revenues decreased by 35.2% on account of lower production. Higher prices accounted for 11.0% growth in revenue which was partly offset by the decrease in volumes by 1.8%. Exports were higher by 15.0% at Rs. 2392260.000 Millions ($ 44.1 billion) as against Rs. 2080420.000 Millions in FY 2011-12.
Higher crude oil prices increased raw materials consumption by 11.4% to Rs. 3061270.000 Millions ($ 56.4 billion) on a Y-o-Y basis.
Employee costs were at Rs. 33540.000 Millions ($ 618 million) for the year as against Rs. 28620.000 Millions in the previous year. Other expenditure increased by 26.6% from Rs. 180400.000 Millions to Rs. 228440.000 Millions ($ 4.2 billion) primarily due to higher expenses on account of power and fuel, selling and distribution, sales tax, professional fees and repairs.
Operating profit before other income and depreciation decreased by 8.4% from Rs. 336190.000 Millions to Rs. 307870.000 Millions ($ 5.7 billion) due to reduction in oil and gas and petrochemicals earnings, partially offset by higher operating profit from refining. Net operating margin was lower at 8.5% as compared to 10.2% on a Y-o-Y basis due to lower production of oil and gas and weaker petrochemicals business margins.
Other income was higher at Rs. 79980.000 Millions ($ 1.5 billion) as against Rs. 61920.000 Millions primarily due to an increase in cash flows from operations that were deployed in bank deposits, mutual funds and Government securities / bonds.
Depreciation (including depletion and amortisation) was lower by 16.9% at Rs. 94650.000 Millions ($ 1.7 billion) against Rs. 113940.000 Millions in FY 2011-12. This was primarily due to lower production of oil and gas.
Interest cost was higher at Rs. 30360.000 Millions ($ 559 million) as against Rs. 26670.000 Millions in FY 2011-12 principally due to higher foreign currency borrowings and depreciation of the Indian rupee. This resulted in gross interest cost being higher at Rs. 34210.000 Millions ($ 630 million) as against Rs. 30970.000 Millions in FY 2011-12. Interest capitalised was lower at Rs. 3850.000 Millions ($ 71 million) as against Rs. 4300.000 Millions.
Profit after tax for the year was at Rs. 21,003 Millions ($ 3.9 billion) as against Rs. 20,040 Millions in the previous year.
Basic EPS for the year was Rs. 64.8 ($ 1.2) as compared to Rs. 61.2 in the previous year.
RIL’s consolidated revenue from operations for FY 2012-13 was Rs. 3970620.000 Millions ($ 73.1 billion), an increase of 10.8% on a Y-o-Y basis. Profit after tax was at Rs. 208790.000 Millions ($ 3.8 billion), an increase of 5.9% as against Rs. 19,724 Millions in the previous year. Basic EPS for the year was at Rs. 70.7 ($ 1.3), as against Rs. 66.2 in the previous year.
The Company is debt-free on a net basis as on March 31, 2013. Return on capital employed was at 11.2% and return on equity was at 12.8%.
RIL bought and extinguished 42,582,849 equity shares for a sum of Rs. 30440.000 Millions during the year. The Company cumulatively bought and extinguished 46,246,280 equity shares at a total cost of Rs. 33660.000 Millions under the buy- back scheme.
The net addition to fixed assets for FY 2012-13 was Rs. 190410.000 Millions ($ 3.5 billion) including an addition of Rs. 19420.000 Millions on amalgamation of Reliance Jamnagar Infrastructure Limited. Capital expenditure was incurred principally on account of on-going expansion projects at Jamnagar, Dahej, Silvassa and Hazira.
During the year, a total of Rs. 289500.000 Millions ($ 5.3 billion) was contributed in the form of taxes and duties. RIL maintained its status as India’s largest exporter. The exports, including deemed exports, were at Rs. 2392260.000 Millions ($ 44.1 billion) as against Rs. 2080420.000 Millions in the previous year.
RIL exported to 116 countries around the world. The exports represent 64% of the RIL’s turnover. Petroleum products constituted 89% of exports value, while the balance was contributed by petrochemicals.
BUSINESS PERFORMANCE
OIL AND GAS
EXPLORATION AND PRODUCTION
BUSINESS
Business Environment
- Global
In 2012, crude oil prices averaged $ 111.6/bbl, while Asian LNG prices averaged $ 15.1/MMBTU. Oil prices remained high as 2012 demand increased by 0.9 MMBPD while non OPEC supply increased only by 0.60 MMBPD which increased the call on OPEC in 2012.
In the year 2013, the incremental oil demand may only be 0.8 MMBPD as per the IEA Oil Market Report dated March 2013 taking the cumulative demand to 90.6 MMBPD for 2013. However, incremental non-OPEC supply would be 1.1 MMBPD due to rise in production from North American shale oil, Iraq and Canadian oil sands, offsetting declines elsewhere in the non-OPEC regions.
Upstream oil and gas investment for 2012 was estimated at about $ 620 billion - higher by 8% than in 2011 and 20% than in 2008 (Source: EIA’s World Energy Outlook 2012). The increased spending reflects a combination of improved returns, spurred by higher oil prices and rising costs of current and planned projects. Despite signs of declining cost inflation with easing global commodity prices, deep and ultra-deep-water rig rates stayed high, even exceeding $ 650,000/day and the subsea market remained tight.
Global LNG prices remained buoyant due to increasing demand in LNG mainly in Japan, China, India and South America contributing to the market tightness. Supply was constrained by maintenance and unscheduled interruptions on existing liquefaction plants, as well as lower-than-expected capacity additions, with only onenew train Pluto in Australia coming into service.
US gas prices rallied to over $ 4/MMBTU in recent months. The strength in the current rally may be sustained, as the US considers policy moves allowing LNG exports, coal-fired power plants shutdown due to proposed environmental regulations and the planned conversion of the truck and rail engine fleets into CNG.
RIL: Portfolio
Overview
Through continuous assessment of its portfolio in terms of prospectivity and risk profile, RIL rationalises its portfolio focusing on monetising and maximising value. RIL’s upstream business has been restructured into different sectors i.e., Conventional, CBM and Shale Gas. In this way the risks and dynamics of each sector are clearly understood and distinctly managed to maximise value and growth.
Coal Bed Methane
(CBM):
RIL currently holds two CBM blocks (Sohagpur East and Sohagpur West) in India which are in an early stage of development.
North America Shale
Gas:
RIL has three JVs, with Pioneer Natural Resources, Carrizo Oil and Gas and Chevron. Apart from this, the Company has a successful midstream joint venture (JV) with Pioneer Natural Resources that caters primarily to the gathering and transportation needs of Pioneer upstream JV.
Pioneer JV Highlights
Pioneer Upstream JV operated with 10 rigs, drilled 133 wells and put 135 wells on production during the year. Producing well count jumped from 111 in December 2011 to 246 by December 2012, thus enabling strong growth in production volumes. Reliance’s share of production (gross) at 11.83 MMBOE reflected a growth of 137% over 2011 levels. Share of liquids remained high at 62% in 2012.
Proved reserves more than doubled from 527 BCFe in 2011 to 1.08 TCFe in 2012. With regular pad drilling, closer spacing is getting established and more Proved Undeveloped (PUD) reserves are added. It is anticipated that Proved Developed Producing (PDP) reserve would increase further, as active pursuit of choke management is arresting declines and maintaining higher yields.
Reliance has now developed a good understanding of heterogeneity of the play with sweet spots and marginal areas, which has helped in high-grading of development activities. Remarkable improvement in drilling efficiencies and completion costs helped the JV to more than offset the impact of industry service cost inflation. Increased use of pad drilling, zipper fraccing and use of sand as proppant as well as benefits of other ongoing initiatives should help reduce unit FandD costs in the future.
Carrizo JV Highlights
Despite a slow start, Carrizo JV attainted significant growth momentum in 2012. JV drilled 37 wells and put 30 on production during the year. Producing a well count of 38 reflects a growth of 375% Y-o-Y. Net proved reserves more than tripled to 234 BCFe in 2012. Exit rate of production at 106 MMCFD in December 2012, compares impressively with 18 MMCFD achieved in December 2011.
JV is pursuing paced development in view of the challenging pricing environment, but remains focused on expedited development of North Eastern Pennsylvania (NEPA) acreages. NEPA acreages are in the sweet spot of the Marcellus play and the performance of NEPA wells has been encouraging, with a much lesser decline thus offer superior economics. JV made significant progress in its appraisal efforts for the C-counties (85% of JV acreages). Results of the appraisal activity are being studied. In the interim, JV would pursue cost-effective lease renewal strategy towards retaining optionality on the acreages.
Chevron JV Highlights
Chevron JV gained development momentum during the second half, though suffered initially on account of continued delay in the availability of midstream infrastructure during the first half of the year. Midstream availability improved considerably during second half of the year.
JV drilled 85 wells and put 63 on production during the year. Cumulatively the number of producing wells was impressive at 101 in December 2012, reflecting a growth of 166% Y-o-Y. Exit rate of production at 185 MMCFD in December 2012, reflects a growth of 143% over 76 MMCFD achieved in December 2011. Net proved reserves nearly tripled to 542 BCF in 2012. Well performance has varied and reflected heterogeneity and geological complexity of the acreage.
Cost reduction efforts yielded limited success. JV realized some cost savings in procurement and rig mob/demob operations, but their impact were masked by higher well pad construction costs in the difficult terrains. Focus in the areas of pad optimisation, facility standardisation, central water impoundment and supply chain management are expected to yield lower costs in the coming year. Enhanced focus on development optimisation, drilling efficiency improvement, water management, adoption of zipper frac and other completion cost reduction initiatives are expected to yield desired reduction in well costs over the next three years.
JV is pursuing paced development in view of the challenging pricing environment and remains focused on 6.0 BCF dry gas areas while retaining optionality on acreages through low cost lease renewals and their expedited development with any improvement in market conditions.
RIL E and P Outlook
By the end of 2012, fields in the KG-D6 block had produced 2 TCF of gas and 22 million barrels of oil, creating unprecedented value for the Nation through nearly $ 35 billion in energy import savings. In partnership with BP, RIL plans to become a major player across the gas value chain in India. The JV has made significant progress towards finding new resources through exploration by identifying new prospects in its deepwater acreages in the East Coast. Further, the JV through extensive efforts is poised to unlock value from its existing discovered resource base by advancing its planning for the next wave of projects in KG-D6 and NEC-25.
RIL’s CBM block continues to make steady progress towards developing the Sohagpur East and West blocks to produce first gas by FY 2014-15.
Reliance expects to see continued growth momentum in the shale business during FY 2013-14. Natural gas prices have improved in recent weeks, crossing the $ 4/MMBTU. While oil price outlook is stable, NGL prices remain under pressure on continued supply side pressures. Well costs remain stable as benefits of ongoing cost and efficiency improvements are partly offset by inflation in service costs.
Reliance remains focused on liquid-rich development activities at the Eagle Ford JV and paced development in its Marcellus JVs. Optimising HBP (Held by Production) efforts and pursuing cost effective lease renewal for retaining optionality on resources is the common theme across JVs. In future, the Company will continue to focus on efficiency improvement and cost reduction, optimizing netback through enriched product and customer mix, as well as high grading of development to ensure superior return on incremental capital spending.
To complement the existing asset base, RIL continues to look at new opportunities globally that are a strategic fit with capabilities and integrated petroleum value chain. In the upstream business, RIL aspires to:
· Become a global top 10 independent hydrocarbon producer through significant and sustainable value creation
· Be India’s top player across the gas value chain
· Responsible operations from an environment and people perspective
· Have best in class people, processes and technology
· Be recognised as a “Partner of Choice” for its stakeholders
The chief enablers for the business model to achieve the above aspiration would be:
· To grow profitably, organically or inorganically, while strengthening its Indian and international positions
· Continued integrated presence across upstream, midstream infrastructure and downstream
· Implementing Centres of Excellence and partnership models to bring and help adopt best processes, technologies and people globally
RIL Performance
Overall, RIL’s refining business had a record financial performance for FY 2012-13 with Gross Refining Margin (GRM) averaging $ 9.2/ bbl, as against $ 8.6/ bbl in FY 2011-12. Though the refining margins remained weak in the first half, margins strengthened in the second half with weakness in fuel oil cracks widening the light heavy differentials and supporting complex refining margins. The margins were also supported by unplanned refinery outages in the second half of the year.
RIL’s refineries continue to outperform their global peers, given their competitive strength to process challenged feedstock and produce clean fuels, at low operating costs.
Total exports of refined products from both refineries reached $ 39.3 billion during the year, as compared to $ 36.0 billion in the previous year. Exports of refined products were 41.2 MMT as compared to 39.6 MMT during the same period last year.
Global PET Scenario
The US and European discretionary spending reduction and poor weather conditions, impacted PET bottles demand.
Prices in FY 2012-13 declined 11% to $ 1450/MT. Further delta declined 25% to $ 167/MT due to bearish sentiments and the rapid capacity build-up. During the year, global PET capacity grew 9% to 22 MMT, with production rising by only 6% to 18 MMT. China alone accounted for 46% of the capacity growth. The large capacity build up in China forced many producers to reduce operating rates and cut down inventory in the second half of the year.
Global Cotton
Scenario
Global cotton production in the 2012-2013 cotton year surpassed consumption, leading to closing stocks reaching historical high. Record Chinese strategic cotton reserve procurement helped stabilise both Chinese and global
cotton prices. Moreover, procurement prices, fixed by China Reserve, were substantially higher than the international rates, putting pressure on the competitiveness of the Chinese spinners.
By the end of the 2012-13 cotton season, China is estimated to have about 10 MMT closing stock which translates to over 50% of the global stocks and almost a year’s Chinese domestic consumption.
Outlook
Global textile fibre industry is expected to grow 24 MMT by 2020 to 105 MMT. Of this polyester will account for over 68% of global demand growth. India is poised to strengthen its global foothold with polyester production share rising to 10% of global volume from the current 8%.
The global PET industry is likely to witness capacity growth of 10 MMT by 2015 to about 32 MMT. With supplies likely to remain above incremental demand, utilisation rates are expected to remain under pressure in the medium term.
For feedstock, tight PX market conditions are likely to continue till 2014 until planned capacity additions are executed. The year 2015 would witness PX capacity growth of 12 MMT over 2012. Operating rates are expected to be maintained above 80%. PTA markets will continue to witness oversupply, with excess capacities likely to make China self-sufficient in the next two years.
China is likely to emerge as a major influence in the global MEG markets by 2015 with 85% of global MEG expansions. Any issue in the operational success of MEG manufactured from the planned coal-based DMO process, would lead to product shortage and impact prices.
India’s all fibre textile mill consumption is likely to grow at a 5.2% CAGR between 2012 and 2020 to 12.3 MMT.
The CAGR growth for the demands for PFY and PSF are expected to be 8.6% and 5.4%, respectively. Polyester is likely to account for a major 60% of incremental domestic fibre demand between 2012 and 2020.
As per Technopak projections, India’s total textile and apparel market size (domestic and export), estimated at $ 89 billion in 2011, is projected to grow at a 9% CAGR to reach $ 223 billion by 2021.
The domestic textile and apparel market size was $ 58 billion in 2011 and is projected to grow to $ 141 billion by 2021. The key growth segments are technical textiles which is likely to see a 10% CAGR, followed by 9% in apparels and 8% in home textiles.
Future Outlook
The Indian retail sector is expected to continue its growth trajectory. Organised retailing is expected to grow at a faster rate thereby garnering a larger share of the market from the current 8% to around 20% by 2020 due to the changing consumer preferences and other growth drivers of organised retail in the country.
Retail business is in a unique position to capitalise on the growing opportunity in India. It is undertaking expansion of all existing formats to strengthen its leadership position vis-à-vis competition. This can be achieved by growing in existing markets and entering newer markets with the intention of ‘Bettering the Lives of Indians Everyday’.
Digital Sector would be one of the growth verticals for the coming year. Reliance Digital stores and Digital Express stores would be rolled out in Tier-I and Tier-II cities and would bring the connected world experience to consumers. The focus would be to further strengthen ResQ, the service arm of the Digital format. ResQ brings in strong service orientation towards meeting the requirements of the customers during the entire product lifecycle.
Retail business seeks to add alternative channels to reach out to customers and has been intensely working on creating a multi-channel model that would benefit customers by offering them convenience of shopping anywhere, anytime and at the best available value proposition.
All formats would be working relentlessly to further their leadership positions in respective sectors making them the favourite shopping destination for Indian customers.
CONTINGENT
LIABILITIES
(Rs. In Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
|
Claims against the
company / disputed liabilities not acknowledged as debts |
|
|
|
In respect of others |
16630.000 |
13430.000 |
|
Guarantees |
|
|
|
Guarantees to Banks
and Financial Institutions against credit facilities extended to third
parties |
|
|
|
In respect of others |
310800.000 |
295830.000 |
|
Performance
Guarantees |
|
|
|
In respect of others |
2580.000 |
1590.000 |
|
Outstanding guarantees
furnished to Banks and Financial Institutions including in respect of Letters
of Credits |
|
|
|
In respect of joint ventures |
1600.000 |
2280.000 |
|
In respect of others |
50990.000 |
51670.000 |
|
Other Money for which
the company is contingently liable |
|
|
|
Liability in respect of bills discounted with Banks (Including third party bills discounting) |
|
|
|
In respect of others |
39610.000 |
6310.000 |
FIXED ASSETS
Tangible Assets
· Leasehold Land
· Freehold Land
· Buildings
· Plant and Machinery
· Electrical Installations
· Equipments
· Furniture and Fixtures
· Vehicles
· Ships
· Aircrafts and Helicopters
Intangible Assets
· Technical Knowhow fees
· Software
· Development Rights
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 LTD |
TRISHUL 3RD FLOOR OPPOSITE SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA |
A05375266 |
* Date of charge modification
AS PER WEBSITE
DETAILS
PRESS RELEASES
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 Ltd., 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 Ltd (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 E&P, 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 & 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.
Mumbai, 19th July
2013
REVENUE OF Rs. 905890.000 Millions ($ 15.3 BILLION)
NET PROFIT OF Rs. 53520.000 Millions ($0.9 BILLION), UP 18.9%
PBDIT OF Rs. 96100.000 Millions ($1.6 BILLION), UP 10.3%
EXPORTS OF Rs. 570260.000 Millions ($ 9.6 BILLION), UP 3.2%
Reliance Industries
Limited (RIL) today reported its financial performance for the quarter ended
30th June, 2013. Highlights of the un-audited financial results as compared to
the previous year are:
|
(In Rs. Millions) |
1Q FY14 |
4Q FY13 |
1Q FY13 |
% Change wrt 4Q FY13 |
% change wrt 1Q FY13 |
|
Turnover |
905890.000 |
866180.000 |
949270.000 |
4.6% |
(4.6%) |
|
PBDIT |
96100.000 |
100680.000 |
87150.000 |
(4.5%) |
10.3% |
|
Profit Before Tax |
66620.000 |
71200.000 |
54680.000 |
(6.4%) |
21.8% |
|
Net Profit |
53520.000 |
55890.000 |
45030.000 |
(4.2%) |
18.9% |
|
EPS (T) |
16.6 |
17.3 |
13.8 |
(4.0%) |
20.3% |
Highlights of
Quarter's Performance
• Revenue (turnover) decreased by 4.6% to Rs. 905890.000 Millions ($ 15.3 billion)
• Exports increased by 3.2% to Rs. 570260.000 Millions ($ 9.6 billion)
• PBDIT increased by 10.3% to Rs. 96100.000 Millions ($ 1.6 billion)
• Profit Before Tax increased by 21.8% to Rs. 66620.000 Millions ($ 1.1 billion)
• Cash Profit increased by 8.3% to Rs. 74090.000 Millions ($ 1.2 billion)
• Net Profit increased by 18.9% to Rs. 53520.000 Millions ($ 0.9 billion)
• Gross Refining Margin at $ 8.4 /bbl for the quarter ended 30th June 2013
Corporate Highlights
· RIL and its partners BP and NIKO announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India. The KGD6-MJ1 well was drilled in a water depth of 1,024 metres - and to a total depth of 4,509 metres - to explore the prospectivity of a Mesozoic Synrift Clastic reservoir lying over 2,000 metres below the already producing reservoirs in the D1- D3 gas fields. The discovery, named 'D-55', has been notified to the Government of India (GoI) and the Management Committee of the block. This discovery is expected to add to the hydrocarbon resources in the KG D6 block. Appraisal will now commence to better define the scale and quality of the field.
· In April 2013, Reliance Jio Infocomm Limited and Bharti Airtel Limited signed an Indefeasible Right to Use (IRU) Agreement, under which Bharti will provide Reliance Jio data capacity on its i2i submarine cable. Reliance Jio will utilize a dedicated fiber pair on i2i. The high speed link will enable Reliance Jio to extend its network and service reach to customers across Asia Pacific region. It will connect Reliance Jio directly to the world's major business hubs and ISPs, thereby, helping the operator to meet the bandwidth demand and provide ultra-fast data experience to its customers.
· In April 2013, Telekom Malaysia Berhad (TM) (Malaysia), Vodafone Group (UK), Omantel (Oman), Etisalat (UAE), Reliance Jio Infocomm Limited (India) and Dialog Axiata (Sri Lanka) -signed the Construction and Maintenance Agreement (C&MA) and the Supply Contract for "Bay Of Bengal Gateway" Cable System (BBG) in Kuala Lumpur. The construction of BBG is planned not only to provide connectivity between South East Asia, South Asia and the Middle East, but also to Europe, Africa and to the Far East Asia through interconnections with other existing and newly built cable systems landing in India, the Middle East and the Far East Asia. BBG will also serve as an extraordinary opportunity for business growth as it will help support current and future high capacity requirements from the surrounding areas of the region as well as next generation Internet applications.
· Reliance Jio Infocomm Limited and Reliance Communications Limited signed of a definitive agreement for sharing of RCOM's nationwide telecom towers infrastructure. Under the terms of the agreement, Reliance Jio Infocomm will utilise upto 45,000 ground and rooftop based towers across RCOM's nationwide network for accelerated roll-out of its state of-the-art 4G services. The agreement provides for joint working arrangements to configure the scope of additional towers to be built at new locations to ensure deep penetration and seamless delivery of next generation services. This agreement follows the inter-city optic fiber sharing agreement already signed in April 2013 as part of a comprehensive framework of business co-operation between Reliance Jio Infocomm and Reliance Communications
· Standard & Poor's raised the long-term corporate credit rating on Reliance to 'BBB+' from 'BBB', one of the highest ratings by S&P for an Indian corporate and the highest rating by S&P for an Indian Oil & Gas company. The new rating which is two notches above the S&P rating for the Indian sovereign is testament to Reliance's strong financial and business profile. Furthermore, Reliance is the only Asian company in the oil & gas sector to be rated two notches above the sovereign by S&P. With this upgrade, Reliance is now rated higher than some of its global emerging market peers demonstrating the strength and competitive position of Reliance in the refining and petrochemicals sector. The rating also underpins Reliance's position as a leading large scale, integrated and efficient oil refining and petrochemicals Company.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: "Reliance achieved strong results during the first quarter of FY 2013-14, while investing in projects that will provide sustainable advantage for a longer period. Our performance this quarter reflects higher operating rates and embedded options in crude sourcing and product placement, given the size and scale of the refining business. Robust growth in petrochemical products demand augurs well for our biggest ever expansion programme. Retail business continues to make remarkable progress and registered a 53% growth in revenues during the first quarter. At Reliance, we are committed to invest for growth in India, for India."
Financial Performance
Review and Analysis
RIL achieved a turnover of Rs. 905890.000 Millions ($ 15.3 billion) for the quarter ended 30th June 2013 as compared to Rs. 949270.000 Millions in the corresponding period of the previous year. Lower volume of 3.4% and price by 1.2% accounted for 4.6% decrease in revenue. Exports were higher by 3.2% on a Y-o-Y basis at Rs. 570260.000 Millions ($ 9.6 billion) as against Rs. 52610.000 Millions in the corresponding period of the previous year.
Consumption of raw materials decreased by 7.0% from Rs.792580.000 Millions to Rs.737290.000 Millions ($ 12.4 billion) mainly on account of lower crude oil prices and slightly reduced throughput in the refining business.
Employee costs were at Rs. 8990.000 Millions ($ 151 million) for the quarter as against Rs. 8510.000 Millions in the corresponding period of the previous year.
Other expenditure increased by 8.9% to Rs.62960.000 Millions ($ 1.1 billion) primarily due to higher expenses on account of power & fuel consumption and stores & spares consumptions.
Operating profit before other income and depreciation increased by 3.9% on a Y-o-Y basis from Rs.68110.000 Millions to Rs.7075 ($ 1.2 billion) 0.000 Millions due to higher margins in refining and petrochemicals business. This was partly offset by lower production in the oil and gas business.
Other income was higher at Rs.25350.000 Millions ($ 427 million) as against Rs.19040.000 Millions in the corresponding period of the previous year. This was mainly on account of profit on sale of investments in the fixed income instruments and higher average liquid investments.
Depreciation (including depletion and amortization) was lower by 13.2% to Rs. 2138 ($ 360 million)0.000 Millions as compared to Rs.2,4630.000 Millions in the corresponding period of the previous year. This was primarily due to lower production of oil & gas.
Interest cost was higher at Rs.8100.000 Millions ($ 136 million) as against Rs. 7840.000 Millions in the corresponding period of the previous year principally due to depreciation of the Indian rupee. This resulted in gross interest cost being higher at Rs.9570.000 Millions ($ 161 million) as against Rs.8220.000 Millions in the corresponding period of the previous year. Interest capitalized was at Rs.1470.000 Millions ($ 25 million) as against Rs.380.000 Millions in the corresponding period of the previous year.
Profit after tax was higher by 18.9% at Rs.53520.000 Millions ($ 0.9 billion) as against Rs.45030.000 Millions in the corresponding period of the previous year.
Basic earnings per share (EPS) for the quarter ended 30th June 2013 was Rs.16.6 ($ 0.3) against Rs.3.8 in the corresponding period of the previous year.
Outstanding debt as on 30th June 2013 was Rs.803070.000 Millions ($ 13.5 billion) compared to Rs.724270.000 Millions as on 31st March 2013.
RIL had cash and cash equivalents of Rs. 930660.000 Millions ($ 15.7 billion). These were in bank deposits, mutual funds, CBLO, CDs and Government securities / bonds. RIL is debt free on a net basis as at
30th June 2013.
The net addition to fixed assets for the quarter ended 30th June 2013 was Rs.105230.000 Millions ($ 1.8 billion) including exchange rate difference capitalisation. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira.
RIL retained its domestic credit ratings of AAA from CRISIL and FITCH and an investment grade rating for its international debt from Moody's as Baa2. S&P has raised the long term corporate credit rating to BBB+ from BBB.
Oil and Gas
(Exploration & Production) Business
|
(In Rs. Millions) |
1Q FY14 |
4Q FY13 |
1Q FY13 |
% Change wrt 4Q FY13 |
% Change wrt 1Q FY13 |
|
Segment Revenue |
14540.000 |
15970.000 |
25080.000 |
(9.0%) |
(42.0%) |
|
Segment EBIT |
3520.000 |
4600.000 |
9720.000 |
(23.5%) |
(63.8%) |
|
EBIT Margin (%) |
24.2% |
28.8% |
38.8% |
|
|
The Cabinet Committee on Economic Affairs (CCEA) approved revised natural gas price formula based on Rangarajan committee's recommendation. This gas pricing formula will be valid for five years effective from April 1, 2014.
Domestic Operations
KG-D6
KG-D6 field produced was 0.5 million barrels of crude oil, 0.06 million barrels of condensate and 49.2 BCF of natural gas in 1Q FY14, a reduction of 41%, 58% and 53% respectively on a Y-o-Y basis. Fall in production is mainly attributed to geological complexity, natural decline in the fields and higher than envisaged water ingress.
During the quarter, drilling of MJ1 exploratory well in KG-D6 block has resulted in a significant gas and condensate discovery. This discovery, named 'D55', has been notified to the Government of India (GoI) and the Management Committee of the block. This discovery is expected to add to the hydrocarbon resources in the KG-D6 block. Appraisal work is expected to start in the second half of the year to better define the scale and quality of the field.
To augment production from existing producing fields, the following activities are under way:
· D1-D3 Field
o Booster compressor - Front End Engineering & Design (FEED) in progress and contracting activities are at advanced stage - expected to complete by 4Q FY15
o MEG up-gradation - bids received; under technical evaluation
o Work-over job - completion studies are in progress
·
MA
o Plan to drill MA8 well and side track / work-over and Floating Production, Storage and Offloading (FPSO) compressor modification
· R-Cluster development in KG-D6 block
o Awaiting approval by Management Committee (MC) for the development plan submitted in January 2013
o Pre-development activities - concept validation and FEED in progress
Panna-Mukta and Tapti
(PMT)
Panna-Mukta fields produced 1.8 million barrels of crude oil and 16.9 BCF of natural gas in 1Q FY14 - reduction of 19% in case of crude oil and 5% in case of natural gas on a Y-o-Y basis. The decrease in oil production was due to shut-down of Panna-Mukta field for three days for SBM maintenance, re-certification work and natural decline.
Tapti produced 0.07 million barrels of condensate and 7.8 BCF of natural gas in 1Q FY14 - a decline of 53% and 43% respectively on Y-o-Y basis. The decrease was due to a natural decline.
The following activities were underway in the current quarter:
· Panna "L" area - 1 well put to production and 5 wells are expected to be completed in
· 3Q FY14
· Infill wells in Panna Mukta - 1 infill well put to production and 7 wells are planned in FY14
The work on replacing the Panna SPM, which had a failure in July 2010, is currently under progress and is expected to be completed by 4Q FY14.
Other Domestic Blocks
· During the period, as part of portfolio rationalization steps, RIL has relinquished the following blocks:
|
KG-DWN-2004/4 |
|
MN-DWN-2004/1 |
|
MN-DWN-2004/2 |
· Exploratory well CY-D5 S1 in CY-D5 block was spud during June 2013. This is being drilled by Rig DDKG2.
·
RIL's India portfolio now consists of 8
exploration blocks excluding CBM, Panna-Mukta and Tapti.
CBM Blocks
RIL holds 2 CBM blocks in Central India viz. Sohagpur (East) and Sohagpur (West). Currently both these blocks are in development phase. Till date, RIL has undertaken the following work in these two blocks:
· Land acquisition under progress
· Core holes drilling in progress
· Over 85 production wells are drilled during exploration and development phases
· Development activities like engineering and procurement in progress
International
operations (conventional)
· Reliance has 4 exploration blocks in its international oil and gas portfolio including 2 each in Yemen and Peru.
International
operations (Shale GAS)
Reliance's shale gas business in the United States comprises of three upstream joint ventures, each with Chevron, Pioneer Natural Resources and Carrizo Oil & Gas and a midstream joint venture with Pioneer. Aggregate investments since inception of these joint ventures stood at around $ 6.0 billion, as at the end of 1Q FY14.
Reliance's shale gas investments continued to grow and development growth momentum remained strong in each of the joint ventures. Reliance's share of gross production stood at 37.7 Bcfe in 1Q FY14, which reflects a growth of 71% on a Y-o-Y and 4% on Q-o-Q basis. Average combined daily production (gross at JV level) for all 3 JVs stood at 914 Mmscfed (including ~51,600 barrels of condensate) during the quarter. As at the end of 1Q FY14, cumulative number of producing wells stood at 494 compared to 440 wells as at the end of the trailing quarter.
Supported by higher volumes, improving gas and condensate prices, aggregate revenues improved to $ 214.5 million, reflecting a growth of 84% over the corresponding period of last year and 11% growth over the trailing quarter. Average unit realization grew to $ 6.69/Mcfe in 1Q FY14, as compared to $ 6.48/Mcfe in 1Q FY13. All the 3 JVs are focused on joint partner efforts on operations, cost and efficiency improvements; high graded development and prudent lease holding strategy to retain optionality.
Refining &
Marketing Business
|
(In Rs. Millions) |
1Q FY14 |
4Q FY13 |
1Q FY13 |
% change wrt 4Q FY13 |
% Change wrt 1Q FY13 |
|
Segment Revenue |
814580.000 |
778720.000 |
853830.000 |
4.6% |
(4.6%) |
|
Segment EBIT |
29510.000 |
35200.000 |
21300.000 |
(16.2%) |
38.5% |
|
Crude Refined (Mn MT) |
17.1 |
16.1 |
17.3 |
|
|
|
GRM ($ / bbl) |
8.4 |
10.1 |
7.6 |
|
|
|
EBIT Margin (%) |
3.6% |
4.5% |
2.5% |
|
|
During the quarter, RIL Jamnagar refineries processed 17.1 million tons of crude and achieved an average utilization rate of 110%. In comparison, average utilization rates for refineries globally during the same period were 84.6% in North America, 78.8% in Europe and 84.6% in Asia.
Revenue for RIL's Refining & Marketing segment decreased by 4.6% to Rs. 814580.000 Millions ($ 13.7 billion) from Rs.853830.000 Millions in the corresponding period last year. Lower volumes of 3.6% and prices by 1.0% accounted for decrease in revenue.
EBIT was at Rs.29510.000 Millions ($ 497 million) for the quarter, an increase of 38.5% from Rs.21300.000 Millions in same period last year. This was achieved due to higher refining margins on a Y-o-Y basis. On Y-o-Y basis, RIL's Gross Refining Margin (GRM) improved from $ 7.6 /bbl to $ 8.4 /bbl. Overall this was a quarter of sustained performance supported by operational excellence and product placement against a relatively weaker market environment.
Total exports of refined products reached $ 8.6 billion during the quarter. Exports of refined products were 10.1 million tons as compared to 9.3 million tons in the corresponding period of the previous year.
During the quarter, the Arab Light - Arab Heavy crude differential widened marginally by $ 0.2 /bbl compared to the same period last year.
During the quarter, Singapore cracking margins remained in a similar range as compared to the same period last year, as the improvement in gasoline and middle distillate cracks was offset by fall in jet-kero and fuel oil cracks. However, on a trailing quarter basis, Asian refining margins declined due to lower gasoline and gasoil cracks, and sharp fall in naphtha cracks. This was partly offset by strong fuel oil cracks.
Gasoil cracks started on a weaker note in this quarter due to weaker regional demand and return of refineries from maintenance. However, demand in later part of the quarter improved due to onset of summer driving and refinery outages in various regions. Increased Chinese exports pressurized prices in Asia pacific region, but unplanned outages later supported the cracks. Compared to the same period last year, Singapore gasoil cracks improved by $ 1.4 /bbl due to stronger regional demand combined with reduced refinery throughput particularly in South Korea, Taiwan and Japan. The Asian middle distillate cracks are likely to remain supported in the future months due to increased demand for power generation from European and Middle Eastern markets coupled with peak driving demand during Ramadan in July.
Gasoline cracks showed a slight improvement in the Asian market compared to the same period last year. Gasoline cracks were $ 11.4 /bbl during the quarter as against $ 10.6 /bbl for the same period last year. Higher regional demand and lower supplies due to planned and unplanned outages resulted in firm gasoline cracks. In the coming months gasoline cracks are likely to be supported by demand recovery from US due to summer driving season.
Asian naphtha cracks showed marginal improvement on a Y-o-Y basis as it was supported by rising demand (OECD Asia, Indian and China), improved gasoline cracks and lower inflows from the West. During the quarter, naphtha cracks in Asia averaged at $ -7.1 /bbl, higher by $ 1.4 /bbl on a Y-o-Y basis. Naphtha cracks continued to remain at negative levels due to increased switching to LPG by some Asian crackers and sluggish European growth pushing more supplies to Asia.
Petrochemicals
Business
|
(In Rs. Millions) |
1Q FY14 |
4Q FY13 |
1Q FY13 |
% Change wrt 4Q FY13 |
% Change wrt 1Q FY13 |
|
Segment Revenue |
219500.000 |
221580.000 |
218390.000 |
(0.9%) |
0.5% |
|
Segment EBIT |
18880.000 |
18950.000 |
17560.000 |
(0.4%) |
7.5% |
|
EBIT Margin (%) |
8.6% |
8.6% |
8.0% |
|
|
|
Production (Mn MT) |
5.3 |
5.4 |
5.6 |
|
|
On a Y-o-Y basis, revenue increased by 0.5% from Rs.218390.000 Millions to Rs. 219500.000 Millions ($ 3.7 billion) mainly on account of increase in prices. The growth in revenue was driven by 0.6% increase in price which was partly offset by 0.1% reduction in volumes.
EBIT margins for the quarter improved to 8.6% from 8.0% last year on account of improvement in the ethylene chain margins.
During the quarter, domestic demand for polymer products was higher by 15% on a Y-o-Y basis, led by 14% growth in polypropylene (PP), 8% growth in polyethylene (PE) and 29% growth in PVC. This was mainly on account of higher domestic consumption across all the major sectors including packaging sector, non-woven fabrics, moulded products, extrusion coating, pipes, films, sheets and wire & cable sectors.
During the quarter, polymer business saw a healthy trend in terms of product margins in PE with good domestic demand. PP, which is the largest part of RIL's polymer portfolio, witnessed stable deltas amid tight supply in the region (on account of turnaround schedule). PVC margins were lower as PVC prices were marginally lower and feedstock (EDC) prices were higher on supply tightness. RIL registered export growth of 10.6% on Y-o-Y basis. During the quarter RIL's major export destination were China, Turkey, Vietnam, Philippines and Brazil.
During the quarter, total RIL polymer production remained high at 1.1 MMT, which was up by 1.9% on a Y-o-Y basis.
Polyester markets were affected by the weak economic sentiments across many major consuming centres. This resulted in continued cautious stance by market players. PET markets although witnessed marginal price gain, enjoyed a margin increase of 11% on Y-o-Y basis due to favourable weather and some pipeline restocking.
PTA industry improved during the quarter with higher margin due to operating rate cuts. Though margin improved by 49% on Y-o-Y basis, they are still below five year average. It could take several quarters for PTA industry to return to a normal margin environment. MEG markets, although impacted by the high stocks in the Chinese ports, prices finished higher by 4% over last year; margins over naphtha also posted gain of 16% on Y-o-Y basis.
During the quarter, domestic polyester demand grew by 10% on a Y-o-Y basis as compared to the last full year (FY 2012-13) growth rate of 5%. The growth was led by PET demand growing over 20%, while PSF markets grew by 10% and PFY saw a growth of 6%. Polyester demand witnessed 12% growth even on Q-o-Q basis.
During the quarter, production of fibre intermediates (PX, PTA and MEG) was around 1.1 MMT, lower by 10% from last year, due to planned shutdown of PX and PTA plants. Polyester (PFY, PSF and PET) production volumes were marginally lower by 1% at 411 KT during the quarter.
RIL continued to focus on specialty products for premium realization, with specialty share in PSF and PFY of over 50% during the quarter.
Domestic demand for Butadiene decreased by 1% on a Y-o-Y basis. This was mainly on account of slowdown in the automobile sector. On a Y-o-Y basis, Butadiene margins halved due to poor demand and excess supplies. On a Y-o-Y basis, demand for LAB decreased by 4% which was mainly due to general slowdown and water shortage in some regions during summers. RIL's LAB production was lower at 29 KT during the quarter.
Organized Retail
The retail business continued to grow in the first quarter of FY 2013-14 despite challenging macroeconomic environment. A mix of strong same store sales growth and new store openings helped increase the turnover by 53% from Rs. 22690.000 Millions to Rs. 34740.000 Millions on a year-on-year basis. The retail business achieved PBDIT of Rs.700.000 Millions for the quarter.
The business continued store expansion across all format sectors and added 45 stores to its portfolio during the period.
The business witnessed strong same store sales growth ranging from 10% to 22% across format sectors over corresponding period last year.
The business made further strides towards attaining leadership position across all format sectors.
· Sale of 1,000 kg of fresh fruits / vegetables and 1,000 liters of beverages and milk every minute is a milestone in our journey towards becoming favorite Grocer of India
· With over 300,000 kiranas/ traders, Reliance Market is becoming their true partner for inclusive growth
· Having serviced over 1 million households, ResQ, the service arm of Reliance Digital has emerged as a trusted technology solutions/home care partner
· Reliance Trends is democratizing fashion for a discerning Indian consumer while selling nearly 100 garments every minute
The business has been building competencies for developing and marketing brands across formats by expanding lines and adding new brands to its portfolio. Value formats have been focusing on expanding grocery range to offer more choices and well-being. In fashion format sector, the focus has been to develop design capabilities and collaborate with international designers to bring trend-forward designs while in electronics the focus has been to offer a wide range of electronics for home, office and life. These efforts have resulted in our own brands to contribute 64% of sales for Reliance Trends, 11 % for Value Formats and 5% for Digital formats.
In another key initiative, Reliance Retail Academy has been focusing on developing a talent pool across the organization. This initiative spans across attracting new talent, building core capabilities, increasing workforce diversity and retaining talent. Over 100,000 man-days of training across organisation have been conducted and the effort continues to further develop the talent pipeline for the organization.
The company now operates over 1,500 stores across 134 cities in India. The 'Reliance One' loyalty program had a membership of over 14.5 million customers.
Broadband Access
RIL's subsidiary, Reliance Jio Infocomm Limited ("RJIL"), which is the only private player with Broadband Wireless Access spectrum in all the 22 telecom circles of India, plans to provide reliable fast internet connectivity and rich digital services on a Pan India basis.
In addition to fixed and wireless broadband connectivity, RJIL also plans to enable end-to-end solutions that address the entire value chain across various digital services in key domains of national interest such as education, healthcare, security, financial services, government-citizen interfaces and entertainment. RJIL aims to comprehensively address the requisite components of the customer need, thereby fundamentally enhancing the opportunity and experience of hundreds of millions of Indian citizens and organizations.
From less than 700 employees last year, most of them based in RJIL's Navi Mumbai campus, the RJIL team has grown rapidly to a national footprint of over 3,000 employees today. The key leadership positions required to execute the project are in place.
RJIL has finalized the key vendor and supplier partnerships that are required for the launch of our services, and is making rapid progress in building the critical infrastructure needed to launch its services.
In the past year, RJIL has announced key definitive agreements with Reliance Communications (RCOM) for inter-city optic fibre sharing, for sharing of up to 45,000 of RCOM's nationwide telecom towers, and for joint working arrangements to configure the scope of additional towers to be built at new locations. RJIL also announced a key agreement for international data connectivity with Bharti to utilise dedicated fiber pair on Bharti's i2i submarine cable that connects India and Singapore.
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 30th JUNE 2013
(Rs. in Millions)
|
Sr. No. |
Particulars |
30.06.2013 |
|
1 |
Income from
Operations |
|
|
|
(a) Net Sales/Income from operations (Net of excise duty and service tax ) |
876450.000 |
|
|
Total income from
operations (net) |
876450.000 |
|
2 |
Expenses |
|
|
|
(a) Cost of materials consumed |
737290.000 |
|
|
(b) Purchases of stock-in- trade |
3920.000 |
|
|
(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(7460.000) |
|
|
(d) Employee benefits expense |
8990.000 |
|
|
(e) Depreciation and amortization expense |
21380.000 |
|
|
(f) Other expenses |
62960.000 |
|
|
Total Expenses |
827080.000 |
|
3 |
Profit from operations before other income, finance costs |
49370.000 |
|
4 |
Other Income |
25350.000 |
|
5 |
Profit from ordinary activities before finance costs |
74720.000 |
|
6 |
Finance costs |
8100.000 |
|
7 |
Profit from
ordinary activities before tax |
66620.000 |
|
8 |
Tax expense |
13100.000 |
|
9 |
Net Profit for the
Period |
53520.000 |
|
10 |
Paid up Equity Share Capital, Equity Shares of T 10/- each. |
32290.000 |
|
11 |
Reserves excluding revaluation reserves |
|
|
12 |
Earnings per share
(Face value of T 10) |
|
|
|
(a) Basic |
16.6 |
|
|
(b) Diluted |
16.6 |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
1 |
Public shareholding
(including GDR holders) |
|
|
|
- Number of Shares (in crore) |
176.55 |
|
|
- Percentage of Shareholding (%) |
54.67 |
|
2 |
Promoters and
Promoter Group shareholding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of shares (in crore) |
|
|
|
- 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 (in crore) |
146.39 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoters and Promoter Group) |
100 |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
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 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 Rs. 4600.000 Millions ($ 77 million) for the quarter ended 30th June 2013 which has been withdrawn from the Reserves. This has no impact on the profit for the quarter ended 30th June 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. 10 investor complaints were pending as on 1st April, 2013 and during the quarter 608 complaints were received. Out of the total complaints, 615 were resolved and the balance 3 complaints which were outstanding as on 30th June 2013, were resolved by 3rd July, 2013.
6. The audit committee reviewed the above results. The Board of Directors at its meeting held on 19th July 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 ended 30th June 2013.
UNAUDITED SEGMENT
INFORMATION FOR THE QUARTER ENDED 30th JUNE 2013
(Rs. in Millions)
|
Sr. No. |
Particulars |
30.06.2013 |
|
|
|
|
|
1. |
Segment Revenue |
|
|
|
- Petrochemicals |
219500.000 |
|
|
- Refining |
814580.000 |
|
|
- Oil and Gas |
14540.000 |
|
|
- Others |
6160.000 |
|
|
Gross Turnover (Turnover and Inter
Segment Transfers) |
1054780.000 |
|
|
Less: Inter Segment Transfers |
148890.000 |
|
|
Turnover |
905890.000 |
|
|
Less: Excise Duty / Service Tax Recovered |
29440.000 |
|
|
Net Turnover |
876450.000 |
|
2. |
Segment Results |
|
|
|
- Petrochemicals |
18880.000 |
|
|
- Refining |
29510.000 |
|
|
- Oil and Gas |
3520.000 |
|
|
- Others |
840.000 |
|
|
Total Segment
Profit before Interest and Tax |
52750.000 |
|
|
(i) Interest Expense |
(8100.000) |
|
|
(ii) Interest Income |
16280.000 |
|
|
(iii) Other Un-allocable Income Net of Expenditure |
5690.000 |
|
|
Profit before Tax |
66620.000 |
|
|
(i) Provision for Current Tax |
(13910.000) |
|
|
(ii) Provision for Deferred Tax |
810.000 |
|
|
Profit after Tax |
53520.000 |
|
3. |
Capital Employed |
|
|
|
(Segment Assets -
Segment Liabilities) |
|
|
|
- Petrochemicals |
394760.000 |
|
|
- Refining |
604590.000 |
|
|
- Oil and Gas |
276510.000 |
|
|
- Others |
239930.000 |
|
|
- Unallocated Corporate |
1257840.000 |
|
|
Total Capital
Employed |
2773630.000 |
Notes to Segment
Information for the Quarter Ended 30th June 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 exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.38 |
|
|
1 |
Rs.100.86 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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.