Invest. Innovate. Inspire. For a new India. ANNUAL REPORT 2014-15 WorldReginfo - a6600bdd-5b64-48b8-8f71-8a7fc1734d41 India is at the threshold of a new era of growth and opportunity. This is driven by increasing economic activity, INSIDE THIS REPORT ongoing ‘Make in India’ initiatives and a demographically CORPORATE OVERVIEW / 02-45 well-placed, aspirational society. 02 / Reliance at a Glance 18 / Strategic Framework Reliance Industries Limited (RIL) continues to be a partner in India’s ongoing 03/ Key Performance Indicators 20 / Review of Operations journey towards economic and social well-being, and remains committed to 04 / Letter to Shareholders 30 / Reliance Foundation investing in and innovating for India. RIL is striving to meet and exceed global 08 / The Board of Directors 32 / Awards and Recognitions benchmarks in product quality and customer service with inspiring ideas and 10 / Investing for the Nation 33 / Company Information strategic investments. From the manufacturing landscape to high-growth 12 / Innovating for the Future 34 / Major Products and Brands Letter from the Chairman / 04 consumer service sectors, RIL is achieving superior outcomes that facilitate India’s 14 / Inspiring Progress 44 / Product Flow Chart drive for global leadership. 16 / Dimensions of Sustainable 45 / Financial Highlights Growth - 4Ps RIL is delivering industry-leading performance through consistent efficiency in operations and prudent configuration of assets. RIL is making sizable capital investments, focusing on technology and expanding its level of services from MANAGEMENT REVIEW / 46-103 the hydrocarbons sector to consumer businesses. RIL innovates for existing 46 / Management’s Discussion and Analysis businesses and also focuses on developing new business models to deliver 94 / Report on Corporate Social Responsibility Invest, Innovate, Inspire / 10 significantg value for its ggrowingg stakeholder fraternity.y In this effort, it collaborates withwwith lealeadingding ggloballoobal ininstitutionsstitutionss to hehelplp uushersher in a nnew era of possibilities. GOVERNANCE / 104-201 RIL’sRIL’s focusfocus isi toto continuecontinue growinggrowing as a responsiblerespoons organisation, thereby inspiringinspiring progressprogress inin thethe liveslives it touches.touches. 104 / Business Responsibility Report 122 / Corporate Governance Report RIL’sRIL’s financialfinana cial aandnd ooperationalperrational pperformanceerformannc reflects the strength 147 / Auditors’ Certificate on Corporate Governance andand extentexxtent ofof integrationintegrattion in its operations.operationn It also highlights its 154 / Directors’ Report robustrobustt riskrisk managementmanagemeent strategies,strategies, proficiencyprofi of its people and Review of Operations / 20 efficiencyefficienncy o fof it itss pr processes.ocessses. The The pro projectsjects t that RIL has undertaken FINANCIAL STATEMENTS / 202-315 andand thethe investmentsinvestments thatthhat it hhasas plannedplanned will help it propel the nextnext phasephhase ofof growthgrowth ffororo itsitselfelf anandd InIndia.d Standalone / 202-253 Consolidated / 254-315 203 / Independent Auditors’ Report on 255 / Independent Auditors’ Report on RILRIL is contributingcoontributing substantiallysubsttantially to sstrengthentre India’s energy Financial Statements Consolidated Financial Statements landscape.landscappe. AtAt ththee sasameme ttime,ime, it is ccreatingrea value for society 204 / Balance Sheet 256 / Consolidated Balance Sheet in retailretail andaand telecomtelecom spheresspheeres andand reinforcingrein community 205 / Profit and Loss Statement 257 / Consolidated Profit and engagements.engagemments. 206 / Cash Flow Statement Loss Statement Management Review / 46 208 / Significant Accounting Policies 258 / Consolidated Cash Flow Statement ContributingContributinng toto India’sIndia’s economiceconoomic growthgro and social uplift is 212 / Notes on Financial Statements 260 / Significant Accounting Policies on RIL’sRIL’s priority,priority, andand it seessees itsits presentpressene t andand future role through the Consolidated Accounts prismprism ofof nationalnationnal progress.progress. 261 / Notes on Consolidated Financial Statements RILRIL remainsremains committedcommmitted to Invest,Investt, InInnovatenon and Inspire. 310 / Salient features of Financial ForFor a newnew InIndia.dia. Statements of Subsidiaries/ Business Responsibility Report / 104 Associates/Joint Ventures SHAREHOLDER INFORMATION / 316-348 On the cover: “We must forge a new partnership The cover depicts RIL’s commitment 316 / Shareholders’ Referencer to the growth and progress of all for a great India. A strong and 329 / Notice of Annual General Meeting stakeholders through consistent 337 / Details Pertaining to Employees as reqired under Section 197(12) of the investments and innovations across the constructive partnership between Companies Act 2013 energy and consumer businesses. RIL has always partnered India’s all-round Attendance Slip and Proxy Form industry, government and society.” progress in line with its philosophy of Members’ Feedback Form ‘Growth is Life.’ Late Shri Dhirubhai Ambani OTHER REPORTS AND INFORMATION Founder Chairman Corporate sustainability related information www.ril.com/Sustainability/CorporateSustainability.aspx Quarterly results and View the Annual Report online at investor presentations www.ril.com/InvestorRelations/FinancialReporting.aspx www.ril.com/ar2014-15 WorldReginfo - a6600bdd-5b64-48b8-8f71-8a7fc1734d41 02-45 46-103 104-201 202-315 316-348 2 Reliance Industries Limited Invest. Innovate. Inspire. For a new India. Annual Report 2014-15 Corporate Overview Management Review Governance Financial Statements Shareholder Information 3 Reliance at a Glance | Key Performance Indicators RELIANCE AT A GLANCE KEY PERFORMANCE INDICATORS RIL is India’s largest private sector Company on key financial parameters. It is a significant global player in the PROFIT & LOSS METRICS (Consolidated) (PROFIT AFTER TAX CAGR OF 27.4%)* integrated energy value chain, and has a growing presence in retail and digital services in India. Built on strong values, RIL is steadfastly rooted in the culture of safety, integrity and commitment. RIL is dedicated to its vision of Turnover (` crore) Profit After Tax (` crore) Earnings per Share (`) partnering India’s economic growth and social wellbeing. RIL strives to be a product and service leader across its 13.0% (year-on-year) 4.8% (year-on-year) 4.7% (year-on-year) industries, a great work-place and above all, to create value for its stakeholders and society. 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 BUSINESSES AT A GLANCE* All figures in ` crore 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 Revenue 3,39,890 • EBIT 15,827 $ 62.2 billion Refining & Marketing 10-11 2,76,372 10-11 19,294 10-11 64.8 Petroleum refining ` 3,88,494 crore Owns and operates two of the world’s largest and most Annual revenue complex refineries with crude processing capacity of 1.24 MMBPD $ 3.8 billion BALANCE SHEET METRICS (Consolidated) (NETWORTH CAGR OF 31.1%)* ` 23,566 crore Net Profit Networth (` crore) Debt Equity Ratio Book Value per Share (`) Petrochemicals Revenue 96,804 • EBIT 8,291 148 9.9% (year-on-year) 5.7% (year-on-year) 9.8% (year-on-year) Polymers, Polyester, Fibre intermediates, Elastomers 14-15 2,18,482 14-15 0.74 14-15 742.3 and Chemicals Major products and brands 13-14 1,98,670 13-14 0.70 13-14 675.9 Integrated petrochemicals player with Top 10 rankings in across energy and service sectors 12-13 12-13 12-13 key products globally 1,82,030 0.59 619.9 11-12 1,69,445 11-12 0.55 11-12 568.9 2nd Largest 10-11 1,54,093 10-11 0.55 10-11 516.9 Oil & Gas Revenue 11,534 • EBIT 3,181 Producer of polyester fibre/yarn, globally Exploration and Production of oil and gas Interests in onshore and offshore exploration 5th Largest SHAREHOLDERS METRICS (MARKET CAPITALISATION CAGR OF 31.7%)* and production in India and significant Producer of PTA, globally presence in US shale India’s first private sector Market Capitalisation (` crore) Dividend per Share (`) company to feature in Fortune 6th Largest Global 500 list of ‘World’s Largest 11.2% (year-on-year) 5.3% (year-on-year) Producer of PP, globally Corporations’, currently ranking Retail Revenue 17,640 • EBIT 417 14-15 2,66,847 14-15 10.0 114 th in terms of revenue and Pan India footprint in organised retail 7th Largest 13-14 13-14 3,00,405 9.5 155th in terms of profit, and Retail market leader in several segments with Producer of PX, globally 12-13 2,49,802 12-13 9.0 continues to be featured for the over 12.5 million sq. ft. of retail space and 11-12 2,44,757 11-12 8.5 11th consecutive year having presence in 200 cities 8th Largest Producer of MEG, globally 10-11 3,42,984 10-11 8.0 Ranks 194th in the Financial Jio Infocomm Times’ FT Global 500 2014 list of Digital services 12 SOCIAL METRICS (STANDALONE) the world’s largest companies Building a countrywide broadband next Conventional E&P blocks generation infrastructure to deliver digital 2,621 CSR Expenditure (` crore) Injury Rate (per 100 workforce) content, applications and services RIL is India’s greenest and most Retail stores across India 6.9% (year-on-year) 42.2% (year-on-year) environment-friendly company, 14-15 14-15 761 0.048 ranking 185th among the world’s Media & Entertainment Revenue 2,747** • EBIT 135** 13-14 712 13-14 0.083 Jio largest 500 companies, according to Broadcasting and Digital properties 12-13 351 12-13 0.095