Enhancing the Quality of Life. Starting up to a Digital Life
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Annual Report 2015-16 Enhancing the quality of life. Starting up to a digital life. “Our dreams have to be bigger. Our ambitions higher. Our commitment deeper. And our efforts greater. This is my dream for Reliance and for India.” Padma Vibhushan Shri Dhirubhai H. Ambani Founder Chairman Reliance has started up a transformative force with a view to digitally empower and enrich Indians with a distinctly digital identity of their very own. Enhancing the quality of life. Starting up to a digital life. Reliance’s businesses and operations have a In its inherent role as a curator of development, deep and wide impact across Indian society. Reliance is nurturing India’s digital dream for Over the past five decades, Reliance has become a bright and brilliant future. Reliance started an integral part of people’s lives, present in a transformative force with a view to digitally their midst, in every moment, keeping them empower and enrich Indians with a distinctly connected, safe and better. digital identity of their very own. Reliance also continues to cater to its consumers’ diverse Since its inception, Reliance has partnered the needs through over 150 major products and nation to develop and grow into its full potential brands across energy and service sectors. and propel the India growth story forward. From the hydrocarbons sector to new-age consumer Reliance is proud to have been a catalyst in businesses, Reliance today has a firm foothold India’s transformation into an attractive economy across sectors, driving the economy forward. globally by directing its investments and focus in areas that will continue to define and shape the These pioneering efforts demonstrate Reliance’s new India. unwavering faith in the nation’s potential and purpose. Invigorating India through insightful Reliance is visibly enhancing the quality of life innovations and strategic investments, Reliance and starting up to a digital life. In doing so, with a select few, has been an architect of the Reliance is partnering the creation of a country’s growth trajectory. new India. Inside this Report Corporate Financial Overview 2 Statements 256 Letter to Shareowners / 4 2 / Reliance at a Glance Standalone 3 / Key Performance Indicators 257 / Independent Auditors’ Report on 4 / Letter to Shareowners Financial Statements 8 / The Board of Directors 262 / Balance Sheet 10 / Enhancing the Quality of Life 263 / Profit and Loss Statement 12 / Making Lives Better 264 / Cash Flow Statement 14 / Jio - Starting up to a Digital Life 266 / Significant Accounting Policies 16 / Jio - Reimagining Digital Life 270 / Notes on Financial Statements 18 / Nurturing Digital Entrepreneurship 20 / People and Innovation Consolidated 21 / Research and Technology 314 / Independent Auditors’ Report on 22 / An Integrated Approach Towards Consolidated Financial Statements Enhancing the Quality of Life / 10 Sustainable Growth - 5P’s 318 / Consolidated Balance Sheet 24 / Strategic Framework and Outcome 319 / Consolidated Profit and Loss 26 / Review of Operations Statement 38 / Reliance Foundation 320 / Consolidated Cash Flow Statement 40 / Awards and Recognition 322 / Significant Accounting Policies on 41 / Company Information Consolidated Accounts 42 / Major Products and Brands 323 / Notes on Consolidated Financial 53 / Product Flow Chart Statements 54 / Financial Highlights 374 / Salient Features of Financial Statements of Subsidiary / Associates / Joint Ventures Management Review / 55 Management Review 55 Shareholder 55 / Management’s Discussion and Analysis Information 380 132 / Report on Corporate Social Responsibility 380 / Shareholders’ Referencer 392 / Notice of Annual General Meeting • Attendance Slip and Proxy Form • Members’ Feedback Form 2015-16 Business Responsibility Report / 148 Governance 148 OTHER REPORTS AND INFORMATION: 148 / Business Responsibility Report • Corporate sustainability related On the cover: 170 / Corporate Governance Report information ril.com/Sustainability/ The cover depicts Reliance’s core belief 198 / Auditors’ Certificate on Corporate CorporateSustainability.aspx of adding value to the quality of life Governance • Quarterly results and Analyst of all stakeholders through ensuring 206 / Directors’ Report Presentations ril.com/InvestorRelations/ growth and progress, in addition to FinancialReporting.aspx better products and services. Reliance • Financial statements of subsidiary endeavours to achieve this through companies ril.com/InvestorRelations/ consistent investments and innovations Downloads.aspx across the energy and consumer businesses. Reliance is building new business of digital services through Jio, Scan the QR Code on your smart device to the world’s largest start-up, which will view the Annual Report online at herald a transformational ecosystem www.ril.com/ar2015-16/index.html leading to a digitally-enabled life for all its consumers and stakeholders. Reliance Industries Limited Enhancing the quality of life. Starting up to a digital life. Annual Report 2015-16 Reliance at a Glance RIL is India’s largest private sector company on key financial parameters. It is a US$44.7 billion significant global player in the integrated energy value chain, and has a growing presence in the retail and digital services in India. Built on strong values, RIL `2,96,091 crore Annual Revenue is steadfastly rooted in the culture of safety, integrity and commitment. RIL is dedicated to its vision of partnering India’s economic growth and social well-being. RIL strives to be a product and service leader across its industries, a US$4.2 billion great work-place and above all, to create value for its stakeholders and society. `27,630 crore BUSINESSES AT A GLANCE* All figures in ` crore Net Profit Refining and Marketing Revenue EBIT 2,34,946 23,598 nd Petroleum Refining 2 Largest Owns and operates two of the world’s largest and most complex Producer of polyester fibre/ refineries with crude processing capacity of 1.24 MMBPD yarn, globally 4th Largest Petrochemicals Revenue EBIT Producer of PTA, globally 82,410 10,221 Polymers, Polyester, Fibre intermediates, Elastomers and Chemicals 6th Largest Integrated petrochemicals player with Top 10 rankings in key products globally and having balanced portfolio of liquid and Producer of PX, globally gas crackers Oil and Gas Revenue EBIT 6th Largest 7,527 378 Producer of PP, globally Exploration and Production of Oil and Gas Interests in onshore and offshore exploration and production in 8th Largest India and significant presence in US shale Producer of MEG, globally Retail Revenue EBIT 21,612 506 151 Pan India footprint in Major products and brands across Organised Retail energy and service sectors Market leader with over 12.8 million sq. ft. of retail space and having presence in over 500 cities 1,000+ Digital Services Pan India spectrum RIL’s Petroleum Retail network 846.1 MHz outlets currently operational Building a countrywide broadband next generation infrastructure to deliver digital content, applications and services 3,383 Retail stores currently operating across India Media and Entertainment Revenue EBIT Jio 3,403 182 Deployed the largest amount of Broadcasting and Digital Properties spectrum for 4G in India Interests in television, print, internet, film, mobile content and allied businesses *Read more about Consolidated Segment Information on Pg. 363 2 Corporate 02 Management 55 148 Financial 256 Shareholder 380 Overview 54 Review 147 Governance 255 Statements 379 Information 396 Reliance at a Glance Key Performance Indicators Profit and Loss Metrics (Consolidated) (Profit After Tax CAGR of 27.2%)* Turnover Profit After Tax Earnings Per Share ` crore ` crore ` 23.8% y-o-y 17.2% y-o-y 17.1% y-o-y 15-16 2,96,091 15-16 27,630 15-16 93.8 14-15 3,88,494 14-15 23,566 14-15 80.1 13-14 4,46,339 13-14 22,493 13-14 76.5 12-13 4,08,392 12-13 20,879 12-13 70.7 11-12 3,68,571 11-12 19,724 11-12 66.2 Balance Sheet Metrics (Consolidated) (Networth CAGR of 30.6%)* Networth Debt Equity Ratio Book Value Per Share ` crore ` 11.5% y-o-y 11.3% y-o-y 15-16 2,43,643 15-16 0.74 15-16 826.5 14-15 2,18,482 14-15 0.74 14-15 742.3 13-14 1,98,670 13-14 0.70 13-14 675.9 12-13 1,82,030 12-13 0.59 12-13 619.9 11-12 1,69,445 11-12 0.55 11-12 568.9 Social Metrics (Standalone) R&D Expenditure Total Recycled Material HSE Expenditure ` crore ’000 tonnes ` crore 3.2% y-o-y 13.9% y-o-y 16.4% y-o-y 15-16 1,259 15-16 82.03 15-16 337.31 14-15 1,220 14-15 71.99 14-15 289.75 13-14 1,218 13-14 69.15 13-14 284.95 12-13 1,118 12-13 63.22 12-13 281.90 11-12 989 11-12 64.90 11-12 247.13 Shareholders Metrics (CAGR of 31.6% in Market Capitalisation)* India’s first private sector company to feature in Fortune Global 500 list of ‘World’s Largest Market Capitalisation Dividend Per Share Corporations’, currently ranking 215th in ` crore ` terms of revenue and 126th in terms of profit. Reliance continues to feature in the list for the 13th consecutive year. 26.9% y-o-y 5.0% y-o-y Ranks 238th in the Financial Times’ FT 15-16 3,38,703 15-16 10.5 Global 500 2015 list of the world’s largest 14-15 2,66,847 14-15 10.0 companies. 13-14 3,00,405 13-14 9.5 Ranked 121st on the Forbes Global 2000 list 12-13 2,49,802 12-13 9.0 (2016). Continues to be the top ranked and one of the most valued Indian company. 11-12 2,44,757 11-12 8.5 * CAGR since IPO i.e. 38 years 3 Reliance Industries Limited Enhancing the quality of life.