Partnering India's New Future. Sustainably
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Reliance Industries Limited Srijan Shekhar Swapnil Agrawal Nimish Nair Priyanshu Patel (Age Group: 5-7 years) (Age Group: 5-7 years) (Age Group: 5-7 years) (Age Group: 5-7 years) Sakcham Gupta Hemal Mahavar Aryam Bhadauria Shrey Patel (Age Group: 5-7 years) (Age Group: 8-10 years) (Age Group: 8-10 years) (Age Group: 11-13 years) PARTNERING Dhwani Sonawane Poonjee Gupta Pranay Sharma Dev Chauhan (Age Group: 11-13 years) (Age Group: 11-13 years) (Age Group: 8-10 years) (Age Group: 8-10 years) INDIA’S Annual Report 2011-12 NEW FUTURE. SUSTAINABLY. design at aicl ([email protected]) ANNUAL Sarth Patel T V Sreesh Tanya Bhatia (Age Group: 8-10 years) (Age Group: 11-13 years) (Age Group: 11-13 years) REPORT 2011-12 Pictures/ photographs shown in this report are for representation purpose only. Unless expressly authorised, Reliance Group neither claims any intellectual property rights nor will be responsible for any infringement action. WorldReginfo - c14091ed-44db-4773-bc87-5748c6145175 Partnering India’s new future. Sustainably. Nation Building - The Reliance Way You can give the visually impaired a white India has an interesting story to tell the world. A story of dynamism and confidence to face the cane and they will not fall. Or give them future, on the strength of new capabilities and a vibrant market for consumption. knowledge and they will lead. Reliance is creating opportunities for future generations by building a unique portfolio of upstream, refining and petrochemicals business with industry-leading performance, and time- critical investments in emerging sectors. Our business growth mirrors the Reliance Drishti recently evolving aspirations of millions of fellow Indians to embrace an launched India’s first advanced quality of life. The result is registered Braille an unprecedented surge in consumption newspaper in Hindi. across the vast social spectrum. This great Indian opportunity is the The newspaper is a small wellspring of our strength. step that will open up a As India helps drive global growth, we world of information and are passionately investing our resources knowledge for the and energies in helping accelerate visually impaired. India’s socio-economic progress. We are committed to sustain a culture of operational excellence, responsible resource utilisation and creating a platform Reliance Drishti, an initiative of Reliance Reliance Foundation, envisaged to become for sustainable growth to benefit all Foundation, aims to help the visually impaired one of the foremost professional philanthropic stakeholders. acquire skills that will make them independent organisations in the world, focuses on and relevant in society. It has also made it five core pillars: rural transformation, a mission to bring the gift of sight to the education, health, urban renewal and arts, visually impaired, especially those who are culture & heritage. underprivileged. Till date, over 10,000 cornea Our way of thinking is clear... when we transform transplant surgeries have been performed the lives of people, we transform India. and lakhs of children have been provided free eye check-ups. www.ril.com WorldReginfo - c14091ed-44db-4773-bc87-5748c6145175 f PREVIOUS g NEXT CONTENTS Contents Company’s Overview 02 Highlights 08 Reliance Foundation 03 10 Years Trend (Fiscal Year) 14 Company Information 04 Letter to Shareholders 15 Financial Highlights 06 The Board of Directors Statutory Reports 16 Notice of Annual General Meeting 86 Secretarial Audit Report 20 Management’s Discussion and Analysis 88 Directors’ Report 51 Report on Corporate Social Responsibility 107 Auditors’ Certificate on Corporate Governance 57 Report on Corporate Governance Financial Statements 109 Auditors’ Report on Financial Statements 158 Consolidated Cash Flow Statement 112 Balance Sheet 160 Significant Accounting Policies on Consolidated Accounts 113 Statement of Profit and Loss 161 Notes on Consolidated 114 Cash Flow Statement Financial Statements 116 Significant Accounting Policies 196 Financial Information of 119 Notes on Financial Statements Subsidiary Companies 155 Auditors’ Report on Consolidated 200 Shareholders’ Referencer Financial Statements 213 Members’ Feedback Form 156 Consolidated Balance Sheet 215 Attendance Slip and Proxy Form 157 Consolidated Statement of Profit and Loss WorldReginfo - c14091ed-44db-4773-bc87-5748c6145175 2 Partnering India's new future. Sustainably. Highlights Reliance Industries Limited (RIL) is India’s largest private sector conglomerate and a Fortune Global 500 companies with business in the energy and materials value chain. GROWING IMPORTANCE ACROSS THE GLOBE l Largest refining capacity at any single location l Largest producer of Polyester Fibre and Yarn l 5th largest producer of Paraxylene (PX) l 5th largest producer of Polypropylene (PP) l 8th largest producer of Purified Terephthalic Acid (PTA) and Mono Ethelen Glycol (MEG) RIL’S CONTRIBUTION TO INDIA’S ECONOMIC GROWTH 7.8% Weightage in the NSE Nifty 5.5% 14% of the 9.3% of India’s Government of Weightage in total exports India’s indirect the BSE Sensex tax revenues 4% of the total market capitalisation in India WorldReginfo - c14091ed-44db-4773-bc87-5748c6145175 Reliance Industries Limited 3 10 Years Trend (Fiscal Year) TURNOVER (` Crore) PROFIT AFTER TAX (` Crore) NETWORTH (` Crore) (Excluding exceptional item) 400,000 25,000 180,000 166,096 339,792 160,000 151,540 350,000 20,286 20,040 20,000 137,171 140,000 300,000 126,373 16,236 258,651 15,637 15,261 120,000 250,000 15,000 200,400 100,000 11,943 200,000 81,449 80,000 146,328 9,069 63,967 139,269 10,000 150,000 7,572 118,354 60,000 49,804 40,403 89,124 5,160 100,000 34,453 73,164 30,327 4,104 40,000 56,247 5,000 50,096 50,000 20,000 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 03 04 05 06 07 08 09 10 11 12 03 04 05 06 07 08 09 10 11 12 03 04 05 06 07 08 09 10 11 12 MARKET CAPITALISATION EARNINGS PER SHARE (`)* BOOK VALUE PER SHARE (`)* (` Crore) (Excluding exceptional item) 400,000 70 550 507.3 62.0 351,320 61.2 342,984 500 463.2 350,000 329,179 60 450 419.5 401.5 50.9 300,000 49.7 49.7 50 400 244,757 239,721 250,000 41.3 350 40 281.8 198,905 300 200,000 32.5 221.3 27.2 250 30 150,000 200 178.7 110,958 145.0 18.5 20 123.4 14.7 150 100,000 76,079 75,132 100 50,000 38,603 10 50 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 03 04 05 06 07 08 09 10 11 12 03 04 05 06 07 08 09 10 11 12 03 04 05 06 07 08 09 10 11 12 * Normalised on account of issue of Bonus Shares in the ratio of 1:1 in 2009-10 WorldReginfo - c14091ed-44db-4773-bc87-5748c6145175 4 Partnering India's new future. Sustainably. Letter to Shareholders Dear Fellow Shareowners, FY 2011-12 has been a challenging year with unprecedented economic uncertainty in Europe, geo- political upheaval in the Middle East and a slowing down of economic growth across Asia. These events had a profound effect on demand and margin outlook for industrial products across the world. In many ways, we are still feeling the after-shocks of the financial meltdown of 2008 and 2009 with leading economies continuing to suffer from low growth and the resultant adverse impact on demand for most products and services. We have been successful in insulating and de-risking our portfolio of businesses by following a prudent operating discipline and further strengthening our rock solid foundation for investments in future growth engines. Even under these tough times, RIL delivered India and is expected to be the preferred choice of fuel sustained operating and financial results from its core given its environment friendly properties and ready businesses. RIL achieved a turnover of ` 339,792 Crore acceptance by users. ($ 66.8 Billion) and net profit of ` 20,040 Crore ($ 3.9 Billion). This was mainly achieved as a result of Production from the KG-D6 block has been adversely resilient demand for petroleum products in developing impacted mainly due to unforeseen reservoir economies from around the world and on-going complexities and water ingress in the producing fields. consumer demand in India for products and services Significant steps have been taken by the joint technical linked to a better quality of life. teams in assessing options for overall reservoir management based on which, an integrated plan for Reliance was able to realise the true potential of its work-overs and additional wells can be executed, subject high quality manufacturing assets, its deep talent to necessary regulatory and government approvals. pool, globally accepted products and strongaccess to Indian markets. We are committed to strengthening India’s energy security and investing in expanding our upstream Reliance’s refineries continued to be recognised as business in India. As we are all aware, India acutely the best-in-class refining assets built in recent times. needs sizeable investments to develop its hydrocarbon Besides winning several accolades for their track reserves and needs to do more in creating anequitable record in safety, energy conservation and environment investment climate that recognises the integral risk- friendliness, they consistently operated at over 100% of reward paradigm of the upstream business. We need design capacity. The refineries achieved their highest to take into consideration the fact that slow-down in ever crude processing of 67.6 Million tonnes, surpassing these investments impacts the overall import bill for the their previous record by over a Million tonnes.