The Board of Directors are pleased to present the Company's Fortieth Annual Report
(Post-IPO) and the Company's audited financial statements (standalone and consolidated)
for the financial year ended March 31, 2017.
The Company's financial performance for the year ended March 31, 2017 is summarised
|PROFIT BEFORE TAX
|Less: Current Tax
|PROFIT FOR THE YEAR
|Add: Other Comprehensive Income
|TOTAL COMPREHENSIVE INCOME FOR THE YEAR
|Less: Total Comprehensive Income attributable to Non Controlling Interest
|TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY
|Add: Balance in Profit and Loss Account (Adjusted)
|Add: Transferred from Capital Reserve Account
|Add: On account of Amalgamation / Disposal of Subsidiaries
|Add: Movement in Other Comprehensive Income
|Transferred to Statutory Reserve
|Transferred to General Reserve
|Transferred to Capital Redemption Reserve
|Transferred to Debenture Redemption Reserve
|Dividend on Equity Shares
|Tax on dividend
|CLOSING BALANCE INCLUDING OTHER COMPREHENSIVE INCOME
* 1 US$ = 64.85 Exchange Rate as on March 31, 2017 (1 US$ = 66.25 as on March 31, 2016)
Figures for FY 2015-16 have been restated as per Ind AS and therefore may not be
comparable with financials for FY 2015-16 approved by the Directors and disclosed in the
financial statement of previous year.
INDIAN ACCOUNTING STANDARD
The Ministry of Corporate Affairs (MCA) on February 16, 2015, notified that Indian
Accounting Standards (Ind AS) are applicable to certain classes of companies from April 1,
2016 with a transition date of April 1, 2015. Ind AS has replaced the previous Indian GAAP
prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with
Rule 7 of the Companies (Accounts) Rules, 2014. Ind AS is applicable to the Company from
April 1, 2016.
The reconciliations and descriptions of the effect of the transition from previous GAAP
to Ind AS have been set out in Note 41 in the notes to accounts in the standalone
financial statement and in Note 42 in the notes to accounts in the consolidated financial
RESULTS OF OPERATIONS AND THE STATE OF COMPANY'S AFFAIRS
THE HIGHLIGHTS OF THE COMPANY'S
PERFORMANCE STANDALONE FOR THE YEAR ENDED MARCH 31, 2017 ARE AS UNDER:
Revenue from operations increased by 5.5 % to 2,65,041 crore (US$ 40.9 billion).
Exports increased 0.6% to 1,47,755 crore (US$ 22.8 billion).
PBDIT increased by 10.2% to 51,965 crore (US$ 8.0 billion). Profit before Tax increased
by 13.2 % to 40,777 crore (US$ 6.3 billion).
Cash Profit increased by 11.2% to 40,909 crore (US$ 6.3 billion).
Net Profit increased by 14.8 % to 31,425 crore (US$ 4.8 billion).
Gross Refining Margin stood at US$ 11.0 / bbl for the year ended March 31, 2017.
FINANCIAL PERFORMANCE REVIEW AND ANALYSIS CONSOLIDATED
The Company achieved a consolidated turnover of 3,30,180 crore (US$ 50.9 billion) for
the year ended March 31, 2017, an increase of 12.6%, as compared to 2,93,298 crore in the
previous year. Increase in revenue is primarily on account of increase in prices of
refining and petrochemical products partially offset by lower volumes from E&P
business. Turnover was also boosted by robust growth in retail business which recorded a
60.2% surge in turnover to 33,765 crore.
Brent crude oil price averaged US$ 48.6/bbl in FY2016-17 as compared to US$ 47.5/bbl in
the previous year. Exports (including deemed export) from India were marginally higher at
1,47,755 crore (US$ 22.8 billion) as against 1,46,855 crore in the previous year.
During FY 2016-17, the Company took significant steps towards completion of the ongoing
hydrocarbon projects with the commissioning of Para-xylene (PX) plant at Jamnagar, making
it the 2nd largest producer of PX globally. During the year, the Company
completed the world's largest and most complex ethane project. It commissioned ethane
receipt and handling facilities at its Dahej manufacturing facilities in a record time of
less than three years. The Refinery Off-Gas Cracker (ROGC) and downstream projects as well
as gasiffcation linked to DTA refinery achieved the installation and mechanical completion
during the year and pre-commissioning and start up activities are in full swing. The
installation and mechanical completion for the gasiffcation linked to the Company's SEZ
refinery has also been substantially achieved. The completion of the hydrocarbon capex
cycle will significantly enhance the Company's cash flows and impart a high degree of
stability to its earnings stream.
The Board of Directors has recommended a dividend of 11/- (that is, 110%) per equity
share of Rs.10/- each (last year 10.50 per equity share) for the financial year ended
March 31, 2017 amounting to 3,916 crore (inclusive of dividend distribution tax of 661
crore). The dividend payment is subject to approval of members at the ensuing Annual
The dividend payout is in accordance with the Company's Dividend Distribution Policy.
The Dividend Distribution Policy of the Company is annexed herewith as Annexure I
to this Report.
MATERIAL CHANGES AFFECTING THE COMPANY
There have been no material changes and commitments affecting the financial position of
the Company between the end of the financial year and date of this Report. There has been
no change in the nature of business of the Company.
MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT
Management's Discussion and Analysis Report for the year under review, as stipulated
under the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 ("Listing Regulations") is presented in a separate section forming part of
the Annual Report.
The developments in business operations/performance of major subsidiaries consolidated
with the Company are as below:
REFINING & MARKETING BUSINESS
The revenue from the R&M segment increased y-o-y to 2,50,833 crore (US$38.7
billion), reflecting higher average oil prices and volumes during the year. Refining EBIT
increased by 6.5% y-o-y to a record level of 25,056 crore (US$ 3.9 billion), supported by
strong product demand, lower freight rates and effective crude sourcing and robust risk
management. At US$11.0/bbl, refining margins were at an 8 (eight) year high. Premium over
Singapore GRM was also at an 8 (eight) year high of US$5.2/bbl.
The revenue from the Petrochemicals segment increased by 12.2% y-o-y to 92,472 crore
(US$ 14.3 billion), primarily due to increase in prices across polymers and polyester
chain. Petrochemicals segment EBIT increased sharply by 27.5% to 12,990 crore (US$ 2.0
billion), supported by favourable product deltas and marginal volume growth. Petrochemical
EBIT margins were at 5 (five) years high at the level of 14%.
OIL AND GAS EXPLORATION & PRODUCTION BUSINESS
During the year, the Company commenced commercial production from its Coal Bed Methane
block (CBM), at Sohagpur (West). The CBM project is India's largest surface hydrocarbon
project. The revenues for the domestic oil and gas operations declined by 34.6% to Rs.
2,787 crore. This was largely on account of 23% decline in production and reduced gas
price realisation. Consequently domestic upstream operations registered negative EBIT of
Rs. (131) crore. In the US Shale operations, weaker Natural Gas differentials in the
Marcellus region along with lower volumes resulted in lower revenues and EBITDA. The
business is taking a cautious approach to resuming development and focusing on conserving
cash and retaining optionality.
Reliance Retail achieved a turnover of Rs. 33,765 crore in FY 2016- 17 as against Rs.
21,075 crore during the previous year, registering a strong growth of 60.2%. The business
delivered record profits during the year with an EBIT of Rs. 784 crore as against Rs. 504
crore in the previous year.
Reliance Retail added 371 stores during the year. It operated 3,616 stores across 702
cities with an area of over 13.5 million square feet. In addition to the retail stores,
Reliance Retail operated 448 fuel outlets as on March 31, 2017.
Reliance Jio announced the commencement of services with Jio Welcome Offer' in
September 2016. In a short period of 170 days, Jio crossed a milestone of 100 million
customers on its all IP wireless broadband network, reflecting an unprecedented level of
acceptance for any technology company globally.
In February 2017, Jio announced industry redefining tariff plans as it embarked upon
the world's largest migration from free to paid services. It announced the Jio Prime
Membership for its initial customers and within a month of announcing the Jio Prime offer,
over 72 million Jio customers signed up for Jio Prime, making it one of the most
successful customer privilege programmes anywhere in the world.
Within 6 months of the launch of Jio, India became the highest mobile data user
globally with a monthly consumption of over 1 billion GB. This level of growth has been
unprecedented on any mobile network anywhere in the world, and is a testimony to the
comprehensive digital ecosystem that Jio has created.
Jio continues to expand its current LTE network coverage foot print and is also
deploying Fiber-to-the-home (FTTH) technology for wire-line broadband and Carrier-Wi-Fi
technologies for broadband via public hotspots.
MEDIA AND ENTERTAINMENT
Network18 improved its market-standing and continued investing for growth in what was a
tumultuous year for the media industry. The operating revenues on a consolidated basis
stood at 1,491 crore, down by 2.4% from 1,527 crore in FY 2015-16.
Driven by sustained investments into new businesses and entry into more regional
markets, Network18 reported an consolidated EBIT of (201) crore for FY 2016-17, as against
173 crore in FY 2015-16.
The Company's financial discipline and prudence is reflected in the strong credit
ratings ascribed by rating agencies as given below:
||Two notches above India's sovereign rating
||One notch above India's sovereign rating
|Long Term Debt
||Highest rating awarded by CRISIL
|Long Term Debt
||Highest rating awarded by India Rating
CONSOLIDATED FINANCIAL STATEMENT
In accordance with the Act and Ind AS 110 - Consolidated Financial Statements read with
Ind AS 28 - Investments in Associates and Ind AS 31 - Interests in Joint Ventures, the
audited consolidated financial statement is provided in the Annual Report.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
During the year under review, companies listed in Annexure II to this Report
have become or ceased to be Company's subsidiaries, joint ventures or associate companies.
A statement containing the salient features of the financial statement of subsidiary/
associate/ joint venture companies is provided as Annexure A to the consolidated financial
statement and therefore not repeated to avoid duplication.
The audited financial statement including the consolidated financial statement of the
Company and all other documents required to be attached thereto may be accessed on the
Company's website at the link: http://www.ril.com/
InvestorRelations/FinancialReporting.aspx. The financial statements of each of the
subsidiaries may also be accessed on the Company's website at the link:
http://www.ril.com/ InvestorRelations/Downloads.aspx. These documents will also be
available for inspection on all working days, that is, except Saturdays, Sundays and
Public Holidays at the Registered Office of the Company.
The Company has formulated a policy for determining material subsidiaries. The Policy
may be accessed at the link: http://www. ril.com/InvestorRelations/Downloads.aspx.
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors state that: a) in the preparation of the annual accounts for the year
ended March 31, 2017, the applicable accounting standards read with requirements set out
under Schedule III to the Act, have been followed and there are no material departures
from the same;
b) the Directors have selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company as at March 31, 2017 and of the profit of
the Company for the year ended on that date;
c) the Directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors have prepared the annual accounts on a going concern basis;
e) the Directors have laid down internal financial controls to be followed by the
Company and that such internal financial controls are adequate and are operating
f) the Directors have devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems are adequate and operating effectively.
The Company is committed to maintain the highest standards of Corporate Governance and
adhere to the Corporate Governance requirements set out by the Securities and Exchange
Board of India (SEBI). The Company has also implemented several best Corporate Governance
practices as prevalent globally. The report on Corporate Governance as stipulated under
the Listing Regulations forms an integral part of this Report. The requisite certificate
from the Auditors of the Company confirming compliance with the conditions of Corporate
Governance is attached to the Report on Corporate Governance.
The 16th ICSI National Awards for Excellence in Corporate Governance, were
presented to the best Governed Companies by The Institute of Company Secretaries of India
(ICSI) and the
Company was presented the prestigious ICSI Certificate of Recognition for Excellence in
Corporate Governance for the year 2015-16.
BUSINESS RESPONSIBILITY REPORT
As stipulated under the Listing Regulations, the Business Responsibility Report
describing the initiatives taken by the Company from an environmental, social and
governance perspective is attached as part of the Annual Report.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All contracts / arrangements / transactions entered by the Company during the financial
year with related parties were in ordinary course of business and on arms' length basis.
During the year, the Company had not entered into any contract / arrangement /
transaction with related parties which could be considered material in accordance with the
Policy of the Company on materiality of related party transactions.
The Policy on materiality of related party transactions and on dealing with related
party transactions as approved by the Board may be accessed on the Company's website at
the link: http:// www.ril.com/InvestorRelations/Downloads.aspx
There are no materially significant related party transactions that may have potential
conflict with interest of the Company at large.
Members may refer to Note 30 to the standalone financial statement which sets out
related party disclosures pursuant to Ind AS.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Board is pleased to inform that the Company was presented the first ICSI CSR
Excellence Award in the large category in the ICSI CSR Excellence Awards function
organised by The Institute of Company Secretaries of India (ICSI).
The Corporate Social Responsibility and Governance Committee (CSR&G Committee) has
formulated and recommended to the Board, a Corporate Social Responsibility Policy (CSR
Policy) indicating the activities to be undertaken by the Company, which has been approved
by the Board.
The CSR Policy may be accessed on the Company's website at the link:
The key philosophy of all CSR initiatives of the Company is guided by three core
commitments of Scale, Impact and Sustainability.
The Company has identified following focus areas for CSR engagement: Rural
Transformation: Creating sustainable livelihood solutions, addressing poverty, hunger
and malnutrition. Environment: Environmental sustainability, ecological balance,
conservation of natural resources and promoting bio-diversity.
Health: A ordable solutions for healthcare through improved access, awareness
and health seeking behaviour. Education and Sports: Access to quality education,
training and skill enhancement, building sports & skills in young students.
Disaster Response: Managing and responding to disaster. Arts, Heritage and
Culture: Protection and promotion of India's arts, culture and heritage.
The Company also undertakes other need based initiatives in compliance with Schedule
VII to the Act.
During the year, the Company spent 659.20 crore (around 2.13% of the average net
profits of last three financial years) on CSR activities.
The annual report on CSR activities is annexed herewith marked as Annexure III.
Your Company has an elaborate Group Risk Management Framework, which is designed to
enable risks to be identified, assessed and mitigated appropriately. The Risk Management
Committee of the Company has been entrusted with the responsibility to assist the Board in
(a) Overseeing and approving the Company's enterprise wide risk management framework; and
(b) Overseeing that all the risks that the organisation faces such as financial, credit,
market, liquidity, security, property, IT, legal, regulatory, reputational and other risks
have been identified and assessed and there is an adequate risk management infrastructure
in place, capable of addressing those risks.
More details on Risk Management indicating development and implementation of Risk
Management policy including identification of elements of risk and their mitigation are
covered in Management's Discussion and Analysis, which forms part of this Report.
INTERNAL FINANCIAL CONTROLS
Internal Financial Controls are an integrated part of the risk management process,
addressing financial and financial reporting risks. The internal financial controls have
been documented, digitised and embedded in the business processes.
Assurance on the effectiveness of internal financial controls is obtained through
management reviews, control self-assessment, continuous monitoring by functional experts
as well as testing of the internal financial control systems by the internal auditors
during the course of their audits. We believe that these systems provide reasonable
assurance that our internal financial controls are designed effectively and are operating
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provisions of the Act and the Articles of Association of the
Company, Smt. Nita M. Ambani and Shri Hital R. Meswani, Directors of the Company, retire
by rotation at the ensuing Annual General Meeting and being eligible, have offered
themselves for re-appointment.
The term of Shri P. K. Kapil and Shri Nikhil R. Meswani as Whole-time Director is up to
May 15, 2018 and June 30, 2018, respectively. The Board of Directors on the recommendation
of the Human Resources, Nomination and Remuneration Committee has re-appointed Shri P. K.
Kapil and Shri Nikhil R. Meswani as Whole-time Directors of the Company for a period of 5
(five) years with effect from May 16, 2018 and July 01, 2018 respectively, subject to
approval of shareholders.
The first term of office of Shri Yogendra P. Trivedi, Prof. Ashok Misra, Shri Mansingh
L. Bhakta, Dr. D. V. Kapur, Prof. Dipak C. Jain and Dr. Raghunath A. Mashelkar, as
Independent Directors, expires at the ensuing Annual General Meeting. Dr. D. V. Kapur has
requested the Board not to consider him for re-appointment and relieve him from the office
of the director after the expiry of his present term. The Board has recommended
re-appointment of Shri Yogendra P. Trivedi, Prof. Ashok Misra, Shri Mansingh L. Bhakta,
Prof. Dipak C. Jain and Dr. Raghunath A. Mashelkar, as
Independent Directors of the Company for a second term of 5 (five) consecutive years.
The Board places on record its appreciation towards valuable contribution made by Dr.
D. V. Kapur during his tenure as a Director of the Company.
Based on the recommendation of the Human Resources, Nomination and Remuneration
Committee, the Board has recommended that Dr. Shumeet Banerji be appointed as an
Independent Director by the members for a term of 5 (five) consecutive years.
The Company has received declarations from all the Independent Directors of the Company
and Dr. Shumeet Banerji confirming that they meet the criteria of independence prescribed
under the Act and the Listing Regulations.
The following policies of the Company are attached herewith marked as Annexure IV A and
Annexure IV B: a) Policy for selection of Directors and determining Directors
independence; and b) Remuneration Policy for Directors, Key Managerial Personnel and other
The Company has devised a Policy for performance evaluation of the Board, Committees
and other individual Directors (including Independent Directors) which includes criteria
for performance evaluation of the Non-executive Directors and Executive Directors. The
evaluation process inter alia considers attendance of Directors at Board and committee
meetings, acquaintance with business, communicating inter se board members, effective
participation, domain knowledge, compliance with code of conduct, vision and strategy,
benchmarks established by global peers, etc, which is in compliance with applicable laws,
regulations and guidelines.
The Board carried out annual performance evaluation of the Board, Board Committees and
Individual Directors and Chairperson. The Chairman of the respective Board Committees
shared the report on evaluation with the respective Committee members. The performance of
each Committee was evaluated by the Board, based on report on evaluation received from
respective Board Committees.
The reports on performance evaluation of the Individual Directors were reviewed by the
Chairman of the Board.
EMPLOYEES' STOCK OPTION SCHEME
The Human Resources, Nomination and Remuneration Committee of the Board of Directors of
the Company inter alia administers and monitors the Employees' Stock Option Scheme of the
Company which is in accordance with the applicable SEBI Regulations.
There is no material change in Employees' Stock Option Scheme during the year under
review and the Scheme is in line with the SEBI (Share Based Employee Benefits)
Regulations, 2014. The Company has received a certificate from the Auditors of the Company
that the Scheme has been implemented in accordance with the SEBI (Share Based Employee
Benefits) Regulations, 2014 and the resolution passed by the members. The certificate
would be placed at the Annual General Meeting for inspection by members.
Voting rights on the shares issued to employees under the Employees' Stock Option
Scheme are either exercised by them directly or through their appointed proxy.
The details as required to be disclosed under the SEBI (Share Based Employee Benefits)
Regulations, 2014 are put on the Company's website at the link: http://www.ril.com/
AUDITORS AND AUDITORS' REPORT
As per the provisions of the Act, the period of office of Chaturvedi & Shah,
Chartered Accountants, Deloitte Haskins & Sells LLP, Chartered Accountants and
Rajendra & Co., Chartered Accountants, Statutory Auditors of the Company, expires at
the conclusion of the ensuing Annual General Meeting.
It is proposed to appoint S R B C & CO LLP, Chartered
Accountants and D T S & Associates, Chartered Accountants, as Joint Auditors of the
Company, for a term of 5 (five) consecutive years. S R B C & CO LLP, Chartered
Accountants and D T S & Associates, Chartered Accountants, have confirmed their
eligibility and qualification required under the Act for holding the office, as Statutory
Auditors of the Company.
The Notes on financial statement referred to in the Auditors' Report are
self-explanatory and do not call for any further comments. The Auditors' Report does not
contain any qualification, reservation, adverse remark or disclaimer.
The Board appointed the following Cost Auditors for conducting the audit of cost
records of the Company for various segments for the FY 2016-17: (i) For Textiles Business
- Kiran J. Mehta & Co., Cost Accountants;
(ii) For Chemicals Business - Diwanji & Associates, Cost Accountants, K.G. Goyal
& Associates, Cost Accountants, V.J. Talati & Co., Cost Accountants, Kiran J.
Mehta & Co., Cost Accountants, Shri Suresh D. Shenoy, Cost Accountant, Shome &
Banerjee, Cost Accountants and Dilip M. Malkar & Co., Cost Accountants;
(iii) For Polyester Business - V.J. Talati & Co., Cost Accountants, Shri Suresh D.
Shenoy, Cost Accountant, and V. Kumar & Associates, Cost Accountants;
(iv) For Electricity Generation - Dilip M. Malkar & Co., Cost Accountants;
(v) For Petroleum Business Shri Suresh D. Shenoy, Cost Accountant;
(vi) For Oil & Gas Business V.J. Talati & Co., Cost Accountants and
Shome & Banerjee, Cost Accountants.
Shome & Banerjee, Cost Accountants, were nominated as the Company's Lead Cost
The Board appointed Dr. K.R. Chandratre, Practising Company Secretary, to conduct
Secretarial Audit for the FY 2016-17. The Secretarial Audit Report for the financial year
ended March 31, 2017 is annexed herewith marked as Annexure V to this Report. The
Secretarial Audit Report does not contain any qualification, reservation, adverse remark
MEETINGS OF THE BOARD
Six meetings of the Board of Directors were held during year. Particulars of meetings
held and attended by each Director are detailed in the Corporate Governance Report, which
forms part of this Report.
The Audit Committee comprises Independent Directors namely Shri Yogendra P. Trivedi
(Chairman), Dr. Raghunath A. Mashelkar, Shri Adil Zainulbhai and Shri Raminder Singh
Gujral. During the year, all the recommendations made by the Audit Committee were accepted
by the Board.
CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE CSR&G
The CSR&G comprises Shri Yogendra P. Trivedi (Chairman), Shri Nikhil R. Meswani,
Dr. Dharam Vir Kapur and Dr. Raghunath A. Mashelkar.
The Vigil Mechanism of the Company, which also incorporates a whistle blower policy in
terms of the Listing Regulations includes an Ethics & Compliance Task Force comprising
senior executives of the Company. Protected disclosures can be made by a whistle blower
through an e-mail, or dedicated telephone line or a letter to the Task Force or to the
Chairman of the Audit Committee. The vigil mechanism and whistle blower policy is put on
the Company's website and can be accessed at:
PARTICULARS OF LOANS GIVEN,
INVESTMENTS MADE, GUARANTEES GIVEN AND SECURITIES PROVIDED
Particulars of loans given, Investments made, guarantees given and securities provided
along with the purpose for which the loan or guarantee or security is proposed to
be utilised by the recipient are provided in the standalone financial statement Please
refer Note 2, 3, 6, 9, 30 and 36 to the standalone financial statement.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars relating to conservation of energy, technology absorption, foreign
exchange earnings and outgo, as required to be disclosed under the Act, are provided in Annexure
VI to this Report.
EXTRACT OF ANNUAL RETURN
Extract of Annual Return of the Company is annexed herewith as Annexure VII to
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3)
of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as
amended, a statement showing the names and other particulars of the employees drawing
remuneration in excess of the limits set out in the said rules are provided in the Annual
Report, which forms part of this Report.
Disclosures relating to remuneration and other details as required under Section
197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 are also provided in the Annual Report, which forms part
of this Report.
Having regard to the provisions of the first proviso to Section 136(1) of the Act and
as advised, the Annual Report excluding the aforesaid information is being sent to the
members of the Company. The said information is available for inspection at the registered
office of the Company during working hours and any member interested in obtaining such
information may write to the Company Secretary and the same will be furnished on request.
The Board of Directors state that no disclosure or reporting is required in respect of
the following items as there were no transactions on these items during the year under
1. Details relating to deposits covered under Chapter V of the Act.
2. Issue of equity shares with differential rights as to dividend, voting or otherwise.
3. Issue of shares (including sweat equity shares) to employees of the Company under
any scheme save and except Employees' Stock Option Scheme referred to in this Report.
4. The Company does not have any scheme of provision of money for the purchase of its
own shares by employees or by trustees for the benefit of employees.
5. Neither the Managing Director nor the Whole-time Directors of the Company receive
any remuneration or commission from any of its subsidiaries.
6. No significant or material orders were passed by the Regulators or Courts or
Tribunals which impact the going concern status and Company's operations in future.
7. No fraud has been reported by the Auditors to the Audit Committee or the Board.
The Board of Directors would like to express their sincere appreciation for the
assistance and co-operation received from the financial institutions, banks, Government
authorities, customers, vendors and members during the year under review. The Boards of
Directors also wish to place on record its deep sense of appreciation for the committed
services by the Company's executives, staff and workers.
|For and on behalf of the Board of Directors
|Mukesh D. Ambani
|Chairman and Managing Director
|Mumbai, April 24, 2017
DIVIDEND DISTRIBUTION POLICY
The Board of Directors (the "Board") of Reliance Industries Limited (the
"Company") at its meeting held on April 24, 2017 has adopted this Dividend
Distribution Policy (the "Policy") as required by Regulation 43A of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing
The objective of this Policy is to establish the parameters to be considered by the
Board of Directors of the Company before declaring or recommending dividend.
The Company has had an uninterrupted dividend payout since listing. In future, the
Company would endeavor to pay sustainable dividend keeping in view the Company's policy of
meeting the long-term growth objectives from internal cash accruals.
CIRCUMSTANCES UNDER WHICH THE SHAREHOLDERS MAY OR MAY NOT EXPECT DIVIDEND
The Board of Directors of the Company, while declaring or recommending dividend shall
ensure compliance with statutory requirements under applicable laws including the
provisions of the Companies Act, 2013 and Listing Regulations. The Board of Directors,
while determining the dividend to be declared or recommended shall take into consideration
the advice of the executive management of the Company and the planned and further
investments for growth apart from other parameters set out in this Policy.
The Board of Directors of the Company may not declare or recommend dividend for a
particular period if it is of the view that it would be prudent to conserve capital for
the then ongoing or planned business expansion or other factors which may be considered by
PARAMETERS TO BE CONSIDERED BEFORE RECOMMENDING DIVIDEND
The Board of Directors of the Company shall consider the following financial / internal
parameters while declaring or recommending dividend to shareholders: Profits earned during
the financial year Retained Earnings Earnings outlook for next three to five years
Expected future capital / liquidity requirements Any other relevant factors and material
The Board of Directors of the Company shall consider the following external parameters
while declaring or recommending dividend to shareholders: Macro-economic environment -
Significant changes in macro-economic environment materially affecting the businesses in
which the Company is engaged in the geographies in which the Company operates Regulatory
changes Introduction of new regulatory requirements or material changes in existing
taxation or regulatory requirements, which significantly affect the businesses in which
the Company is engaged Technological changes which necessitate significant new investments
in any of the businesses in which the Company is engaged
UTILISATION OF RETAINED EARNINGS
The Company shall endeavor to utilise the retained earnings in a manner which shall be
beneficial to the interests of the Company and also its shareholders.
The Company may utilize the retained earnings for making investments for future growth
and expansion plans, for the purpose of generating higher returns for the shareholders or
for any other specific purpose, as approved by the Board of Directors of the Company.
PARAMETERS THAT SHALL BE ADOPTED WITH REGARD TO VARIOUS CLASSES OF SHARES
The Company has issued only one class of shares viz. equity shares. Parameters for
dividend payments in respect of any other class of shares will be as per the respective
terms of issue and in accordance with the applicable regulations and will be determined,
if and when the Company decides to issue other classes of shares.
CONFLICT IN POLICY
In the event of any conflict between this Policy and the provisions contained in the
Listing Regulations, the Listing Regulations shall prevail.
The Board may, from time to time, make amendments to this Policy to the extent required
due to change in applicable laws and Listing Regulations or as deemed fit on a review.
|For and on behalf of Board of Directors
|Mukesh D. Ambani
|Chairman and Managing Director
|Mumbai, April 24, 2017
COMPANIES WHICH BECAME / CEASED TO BE COMPANY'S SUBSIDIARIES, JOINT VENTURES OR
1. Companies / Bodies Corporate which have become subsidiaries during the financial
||Name of the Company
||Cluster Commercials Private Limited
||Devashree Commercial Private Limited
||Dignity Mercantile Private Limited
||Girisha Commercials Private Limited
||Jio Payments Bank Limited
||Reliance Commercial Dealers Limited
||Reliance Commercial Trading Private Limited
||Reliance LNG Limited
||Companies/ Bodies Corporate which ceased to be subsidiaries during the financial year
||Name of the Company
||Gapco Kenya Limited
||Gapco Tanzania Limited
||Gapco Uganda Limited
||Gapoil (Zanzibar) Limited
||GenNext Holding Investments LLC
||Gulf Africa Petroleum Corporation
||Reliance do Brasil Indstria the Comrcio de Produtos Txteis, Qumicos,
Petroqumicos the Derivados Limiteda
||Reliance Holding Acquisition Corp
||Reliance USA Gas Marketing LLC
3. Companies/ Bodies Corporate which ceased to be a joint venture or associate during
the financial year 2016-17.
Reliance LNG Limited which was associate of the Company has become subsidiary of the
ANNEXURE IV A
POLICY FOR SELECTION OF DIRECTORS AND DETERMINING DIRECTORS' INDEPENDENCE
1.1 Reliance Industries Limited (RIL) believes that an enlightened Board consciously
creates a culture of leadership to provide a long-term vision and policy approach to
improve the quality of governance. Towards this, RIL ensures constitution of a Board of
Directors with an appropriate composition, size, diversified expertise and experience and
commitment to discharge their responsibilities and duties effectively.
1.2 RIL recognises the importance of Independent Directors in achieving the
effectiveness of the Board. RIL aims to have an optimum combination of Executive,
Non-Executive and Independent Directors.
2. SCOPE AND EXCLUSION:
2.1 This Policy sets out the guiding principles for the Human Resources, Nomination and
Remuneration Committee for identifying persons who are qualified to become Directors and
to determine the independence of Directors, in case of their appointment as independent
directors of the Company.
3. TERMS AND REFERENCES:
In this Policy, the following terms shall have the following meanings: 3.1 "Director"
means a director appointed to the Board of a company.
3.2 "Human Resources, Nomination and Remuneration Committee" means the
committee constituted by RIL's Board in accordance with the provisions of Section 178 of
the Companies Act, 2013 and Regulation 19 of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing
3.3 "Independent Director" means a director referred to in sub-section
(6) of Section 149 of the Companies Act, 2013 and Regulation 16 (1) (b) of Listing
4.1 Qualifications and criteria
4.1.1 The Human Resources, Nomination and
Remuneration (HRNR) Committee, and the Board, shall review on an annual basis,
appropriate skills, knowledge and experience required of the Board as a whole and its
individual members. The objective is to have a Board with diverse background and
experience that are relevant for the Company's global operations.
4.1.2 In evaluating the suitability of individual Board members, the HRNR Committee may
take into account factors, such as: General understanding of the Company's business
dynamics, global business and social perspective; Educational and professional background;
Standing in the profession; Personal and professional ethics, integrity and values;
Willingness to devote sufficient time and energy in carrying out their duties and
4.1.3 The proposed appointee shall also fulfill the following requirements: Shall
possess a Director Identification Number; Shall not be disqualified under the Companies
Act, 2013; Shall give his written consent to act as a Director;
Shall endeavour to attend all Board Meetings - and wherever he is appointed as a
Committee Member, the Committee Meetings; Shall abide by the Code of Conduct established
by the Company for Directors and Senior Management Personnel; Shall disclose his concern
or interest in any company or companies or bodies corporate, firms, or other association
of individuals including his shareholding at the first meeting of the Board in every
financial year and thereafter whenever there is a change in the disclosures already made;
Such other requirements as may be prescribed, from time to time, under the Companies Act,
2013, Listing Regulations and other relevant laws.
4.1.4 The HRNR Committee shall evaluate each individual with the objective of having a
group that best enables the success of the Company's business.
4.2 Criteria of Independence
4.2.1 The HRNR Committee shall assess the independence of Directors at the time of
appointment / re-appointment and the Board shall assess the same annually. The Board shall
re-assess determinations of independence when any new interests or relationships are
disclosed by a Director. 4.2.2 The criteria of independence, as laid down in Companies
Act, 2013 and Listing Regulations, is as below: An independent director in relation to a
company, means a non-executive director, other than a managing director or a whole-time
director or a nominee director a. who, in the opinion of the Board, is a person of
integrity and possesses relevant expertise and experience; b. (i) who is or was not a
promoter of the company or its holding, subsidiary or associate company; (ii) who is not
related to promoters or directors in the company, its holding, subsidiary or associate
company; c. who has or had no pecuniary relationship with the company, its holding,
subsidiary or associate company, or their promoters, or directors, during the two
immediately preceding financial years or during the current financial year; d. none of
whose relatives has or had pecuniary relationship or transaction with the company, its
holding, subsidiary or associate company, or their promoters, or directors, amounting to
two per cent or more of its gross turnover or total income or 50 lakh rupees or such
higher amount as may be prescribed, whichever is lower, during the two immediately
preceding financial years or during the current financial year; e. who, neither himself
nor any of his relatives (i) holds or has held the position of a key managerial
personnel or is or has been an employee of the company or its holding, subsidiary or
associate company in any of the three financial years immediately preceding the financial
year in which he is proposed to be appointed; (ii) is or has been an employee or
proprietor or a partner, in any of the three financial years immediately preceding the
financial year in which he is proposed to be appointed, of - (A) a firm of auditors or
company secretaries in practice or cost auditors of the company or its holding, subsidiary
or associate company; or (B) any legal or a consulting firm that has or had any
transaction with the company, its holding, subsidiary or associate company amounting to 10
per cent or more of the gross turnover of such firm; (iii) holds together with his
relatives two per cent or more of the total voting power of the company; or (iv) is a
Chief Executive or director, by whatever name called, of any non-profit organisation that
receives twenty-five per cent or more of its receipts or corpus from the company, any of
its promoters, directors or its holding, subsidiary or associate company or that holds two
per cent or more of the total voting power of the company; or (v) is a material supplier,
service provider or customer or a lessor or lessee of the company. f. shall possess
appropriate skills, experience and knowledge in one or more fields of finance, law,
management, sales, marketing, administration, research, corporate governance, technical
operations, corporate social responsibility or other disciplines related to the company's
business. g. shall possess such other qualifications as may be prescribed, from time to
time, under the Companies Act, 2013. h. who is not less than 21 years of age.
4.2.3 The Independent Directors shall abide by the
"Code for Independent Directors" as specified in Schedule IV to the Companies
4.3 Other directorships / committee memberships
4.3.1 The Board members are expected to have adequate time and expertise and experience
to contribute to effective Board performance. Accordingly, members should voluntarily
limit their directorships in other listed public limited companies in such a way that it
does not interfere with their role as directors of the Company. The HRNR Committee shall
take into account the nature of, and the time involved in a Director's service on other
Boards, in evaluating the suitability of the individual Director and making its
recommendations to the Board.
4.3.2 A Director shall not serve as Director in more than 20 companies of which not
more than 10 shall be Public Limited Companies.
4.3.3 A Director shall not serve as an Independent Director in more than 7 Listed
Companies and not more than 3 Listed Companies in case he is serving as a Whole-time
Director in any Listed Company.
4.3.4 A Director shall not be a member in more than 10 Committees or act as Chairman of
more than 5 Committees across all companies in which he holds directorships.
For the purpose of considering the limit of the Committees, Audit Committee and
Stakeholders' Relationship Committee of all Public Limited Companies, whether listed or
not, shall be included and all other companies including Private Limited Companies,
Foreign Companies and Companies under Section 8 of the Companies Act, 2013 shall be
|For and on behalf of Board of Directors
|Mukesh D. Ambani
|Chairman and Managing Director
|Mumbai, April 24, 2017
ANNEXURE IV B
REMUNERATION POLICY FOR DIRECTORS, KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES
1.1 Reliance Industries Limited (RIL) recognises the importance of aligning the
business objectives with specific and measureable individual objectives and targets. The
Company has therefore formulated the remuneration policy for its directors, key managerial
personnel and other employees keeping in view the following objectives:
1.1.1 Ensuring that the level and composition of remuneration is reasonable and
sufficient to attract, retain and motivate, to run the company successfully.
1.1.2 Ensuring that relationship of remuneration to performance is clear and meets the
1.1.3 Ensuring that remuneration involves a balance between fixed and incentive pay
reflecting short and long term performance objectives appropriate to the working of the
company and its goals.
2. SCOPE AND EXCLUSION:
2.1 This Policy sets out the guiding principles for the Human Resources, Nomination and
Remuneration Committee for recommending to the Board the remuneration of the directors,
key managerial personnel and other employees of the Company.
3. TERMS AND REFERENCES:
In this Policy, the following terms shall have the following meanings: 3.1 "Director"
means a director appointed to the Board of the Company.
3.2 "Key Managerial Personnel" means
(i) the Chief Executive Officer or the Managing Director or the Manager; (ii) the
Company Secretary; (iii) the Whole-time Director; (iv) the Chief Financial Officer; and
(v) such other officer as may be prescribed under the Companies Act, 2013 3.3 "Human
Resources, Nomination and Remuneration Committee" means the committee constituted
by RIL's Board in accordance with the provisions of Section 178 of the Companies Act, 2013
and Regulation 19 of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 ("Listing Regulations").
4.1 Remuneration to Executive Directors and Key Managerial Personnel
4.1.1 The Board, on the recommendation of the Human Resources, Nomination and
Remuneration (HRNR) Committee, shall review and approve the remuneration payable to the
Executive Directors of the Company within the overall limits approved by the shareholders.
4.1.2 The Board, on the recommendation of the HRNR Committee, shall also review and
approve the remuneration payable to the Key Managerial Personnel of the Company.
4.1.3 The remuneration structure to the Executive Directors and Key Managerial
Personnel shall include the following components: (i) Basic Pay (ii) Perquisites and
Allowances (iii) Stock Options (iv) Commission (Applicable in case of Executive Directors)
(v) Retiral benefits (vi) Annual Performance Bonus
4.1.4 The Annual Plan and Objectives for Executive Directors and Senior Executives
(Executive Committee) shall be reviewed by the HRNR Committee and Annual Performance Bonus
will be approved by the Committee based on the achievements against the Annual Plan and
4.2 Remuneration to Non-Executive Directors
4.2.1 The Board, on the recommendation of the HRNR Committee, shall review and approve
the remuneration payable to the Non-Executive Directors of the Company within the overall
limits approved by the shareholders.
4.2.2 Non-Executive Directors shall be entitled to sitting fees for attending the
meetings of the Board and the Committees thereof. The Non-Executive Directors shall also
be entitled to profit related commission in addition to the sitting fees.
4.3 Remuneration to other employees
4.3.1 Employees shall be assigned grades according to their qualifications and work
experience, competencies as well as their roles and responsibilities in the organisation.
Individual remuneration shall be determined within the appropriate grade and shall be
based on various factors such as job profile, skill sets, seniority, experience and
prevailing remuneration levels for equivalent jobs.
|For and on behalf of Board of Directors
|Mukesh D. Ambani
|Chairman and Managing Director
|Mumbai, April 24, 2017
PARTICULARS OF ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO REQUIRED UNDER THE COMPANIES ACCOUNTS RULES, 2014
A. CONSERVATION OF ENERGY
I STEPS TAKEN FOR CONSERVATION OF ENERGY
Energy security has always been one of the key components of RIL's business strategy
and also one of the biggest challenges encountered globally. With the commissioning of
coal based power plants at Dahej and Hazira in FY 2016-17, the Company is now better
equipped to benefit from volatile fuel prices and optimise energy cost.
The Company's systems and processes ensure optimum energy usage by continuous
monitoring of all forms of energy and increasing the efficiency of operations.
On the energy conservation front, the Company continues its thrust on improving energy
efficiency through adoption of new technology and optimisation of operation, thereby
reducing energy cost. The Company spent Rs. 222.83 crore as capital investment towards
procurement and installation of energy efficient equipment.
A dedicated Energy Cell', both at the site and group levels, is focusing on
energy management and closely monitors energy consumption pattern across all manufacturing
sites. Periodic energy audits are conducted to improve energy performance and benchmark
with other international refineries and petrochemical sites.
Major energy conservation and initiatives taken during the FY 2016-17
Refining & Marketing
Jamnagar manufacturing division (DTA)
Installation of heat recovery system from ue gasses to preheat combustion air for three
heaters in Coker plant and increase heater efficiency.
Increased heat recovery from Naphtha Splitter (NS) bottom stream to High Pressure
Boiler Feed Water (HP-BFW) and reduce Medium Pressure (MP) steam consumption.
Installation of new ue gas cooler in Fluid Catalytic Cracker Unit (FCCU) resulting in
additional steam generation. Reduction of power recovery train wind-milling steam with low
pressure steam line modification.
Increased heat recovery from Clarified Slurry Oil (CSO) and Light Cycle Oil (LCO)
streams to preheat cold feed and boiler feed water by modifying heat exchanger network in
Increased heat recovery from Hydrogen plant to preheat Boiler Feed Water.
Naphtha Splitter column is refurbished with divided wall column technology to reduce
energy consumption in distillation.
Routing propylene from Propylene Recovery unit (PRU) directly to Polypropylene (PP)
unit and reduce pumping power consumption.
Medium Pressure Boiler Feed Water (MP-BFW) preheating by heat recovery from by
Jamnagar manufacturing division (SEZ)
Installation of heat exchanger to increase medium pressure steam generation in Diesel
Hydro Desulfurisation unit. Increased heat recovery from Clarified Slurry Oil (CSO) and
Light Cycle Oil (LCO) streams to preheat cold feed and boiler feed water by modifying heat
exchanger network in FCCU and reducing steam consumption.
Refurbishment of the Platformer heater in Heavy Naphtha Union ning Unit (HNUU)
resulting in increased heat recovery from ue gasses.
Hazira manufacturing division
Combustion and air optimisation in cracker furnaces by reducing lower speed limit of
the Induced Draft (ID) fan, resulting in fuel gas consumption reduction.
Refflux flow optimisation and pressure reduction in Benzene Column resulted in Medium
Pressure (MP) steam consumption reduction in Aromatics plant.
Installation of new pressure control system in benzene tower for reduction of medium
pressure steam in aromatics plant. Stoppage of cooling tower fan in butane plant resulted
in power consumption reduction.
Installation of Advanced Process Control (APC) in butane-1 plant resulted in reduced
Refflux optimisation in Para Di-ethyl benzene plant resulted in High Pressure (HP)
steam consumption reduction in Aromatics plant.
Reduction in Low Pressure (LP) steam consumption by increasing heat recovery via
Solvent Exchanger in Butadiene plant.
Installation of additional LP steam pipelines to increase Steam export from Puriffed
Terephthalic Acid plant (PTA). Installation of ash vessel to generate Intermediate
Pressure (IP) steam from High Pressure (HP) condensate. Installation of high efficiency
air preheater for hot-oil vaporiser resulting in reduction of fuel gas consumption in
Poly-Ethylene (PE) Plant.
Provision of soft switch in Styrene Butadiene Rubber (SBR) unit for operating dryer
conveyor during cleaning resulting in power consumption reduction.
Reduction in diameter of Vinyl Chloride Monomer (VCM) hi-boil column bottom-up pump
impeller resulted in power reduction.
Impeller replacement and corrosion proof coating in cooling tower pumps resulted in
efficiency improvement and reduction in power consumption.
Effluent recycle from Demineralisation plant to
Demineralisation Reverse osmosis resulted in reduction of lter water consumption.
Replacement of DH Column Fin Fan condenser blades with high efficiency fans to reduce
Vadodara manufacturing division
Drying column feed preheating with column bottom product resulted in steam consumption
reduction. Control system modification in deaerator of Gas Turbine Power Plant (GTPP) to
increase heat recovery from Poly-Butadiene Rubber (PBR) plant and reduce steam
Dahej manufacturing division
Installation of Hydraulic Power Recovery Turbine (HPRT) to generate electrical power
from hydraulic pressure reduction.
Interconnected High Pressure (HP) and Low Pressure (LP) air headers to reduce air
venting and to stop one air compressor.
Power consumption reduction by stoppage of one amine booster pump in Ethylene Propylene
Recovery Unit (EPRU) Refurbishment of condensate stripper in Gas Cracker Unit (GCU) for
reduced steam and power consumption.
Installation of closed loop condensate system at GCU for increased recovery of
Nagothane manufacturing division
Low pressure condensate recovery in the Gas Cracker (GC) Optimisation of the main steam
header pressure at Captive Power Plant (CPP).
Installed a small air compressor and switched-off of a bigger compressor to avoid
venting and reduce power consumption.
Stoppage of nitrogen compressor in Air Separation Plant through improved Nitrogen stock
Management to reduce power consumption.
Patalganga manufacturing division
Refurbishment of Air Pre-Heater (APH) of the back end heaters in Linear Alkyl Benzene
(LAB) plant to reduce fuel consumption.
Replacement of burner tips with new energy efficient ones in stripper reboiler furnace
of Para-Xylene (PX) plant and increase furnace efficiency.
Replacement of internal packings of para n column in Linear Alkyl Benzene plant and
reduce energy consumption in the distillation column reboiler.
Other initiatives taken at various manufacturing divisions
Replacement of old motors with Energy efficient motors in Barabanki and Hoshiarpur
Manufacturing Divisions. Replacement of Fluorescent tube lights with LED lights in
Barabanki and Naroda Manufacturing Divisions.
Installations of an Energy efficient boiler and air compressor to replace old ones for
saving energy at Naroda Manufacturing Division.
II STEPS TAKEN BY THE COMPANY FOR UTILISING ALTERNATE SOURCES OF ENERGY
Rooftop solar photo voltaic projects are being installed across RIL manufacturing
Innovative applications of renewable energy such as solar thermal integration with
manufacturing processes, biomass co-ring etc are being evaluated.
Biogas generation facilities being installed at various sites to process organic waste.
III THE CAPITAL INVESTMENT ON ENERGY CONSERVATION EQUIPMENT
||Capital investments on energy efficient equipment's (Rs.Crores)
||Energy savings (Gcal/hr)
||Financial saving (Rs. In crore per Annum)
||Jamnagar manufacturing division (DTA)
||Jamnagar manufacturing division (SEZ)
||Hazira manufacturing division
||Vadodara manufacturing division
||Dahej manufacturing division
||Nagothane manufacturing division
||Patalganga manufacturing division
||Other manufacturing divisions
B. TECHNOLOGY ABSORPTION
Research and technology at RIL helps create superior value by harnessing internal
research and development skills and competencies and creates innovations in emerging
technology domains related to RIL's various businesses. Research and technology at
Reliance focuses on (i) new products, processes and catalyst development to support
existing businesses and create breakthrough technologies for new businesses, (ii) advanced
troubleshooting, and (iii) support to capital projects, and profit and reliability
improvements in manufacturing plants.
1 MAJOR EFFORTS MADE TOWARDS TECHNOLOGY ABSORPTION
Refining & Marketing
Profitable disposal of gasiffer slag and value creation by extraction of nickel and
vanadium from slag. Multi-functional sulfur soil nutrient for enhancing crop quality and
yield as sodic soil amendment.
Development of low cost Carbon dioxide adsorbent and capture process.
Development of the process for direct synthesis of dimethyl carbonate from Carbon
Benzene extraction process from ole nic uidised catalytic cracking (FCC) gasoline.
Development of high active FCC catalyst. Production of nPnO, linear alkyl benzene (LAB)
feedstock from Light Coker Gas Oil (LCGO) at Jamnagar.
Demo unit to demonstrate multi zone catalytic cracking process (MCC).
Removal of oxygenates and Carbon di-sulphide (CS2) from petrochemical naphtha.
Development of Zeolite Socony Mobil5 (ZSM-5) additive (RMP-5) to improve
propylene yield in the FCC.
Accelerated deactivation protocol for Vacuum gas oil Hydro treating unit (VGOHT)
Fast characterisation of crude using Near-infrared (NIR) to provide assay update
In-house corrosion model developed to estimate true corrosivity of crude to optimise
crude purchases. In-house RIL platformer model developed and is being used to maximise
value of C5-C12 pool.
Development of in-house RIL model for VGOHT is started.
Development of a Reliance proprietary process to manufacture Chlorinated Polyvinyl
Chloride (CPVC) resin. Development of Reliance proprietary catalyst for reforming,
dehydrogenation of hydrocarbons.
Development of novel speciality materials like self-healing elastomers for extended
life of a tire. Development of high strength fibre and lm for ballistic armours.
Development of a Reliance proprietary catalyst and process to replace Hydroffuoric Acid
(HF) in the manufacture of Linear Alkyl Benzene (LAB) for use in detergents.
Puriffcation of crude terephthalic acid using ionic liquids based technology to
significantly reduce operations and capital cost.
Novel processes for production of polymer monomers such 1-hexene, butadiene.
Homo grade polypropylene development through Reliance proprietary catalyst system for
better operational reliability and higher performance of products.
HDPE process and product quality enhancement for bimodal HDPE.
Modiffcations in styrene butadiene rubber process improvement and product quality
enhancement. Novel halo butyl process development and next generation products for niche
applications. Hybrid sulfur polymers development for construction and coating sectors.
Biodegradable polyalyl carbonates polymerisation using carbon dioxide as raw material.
Novel polypropylene product development ranging from medium to high molecular weight
for niche applications.
Metallocene polyethylene (PE) products and process development for packaging
Self-adhesive material development for health sector. Self-healing halo butyl rubber
Successful development and commercialisation of opaque polyethylene terephthalate (PET)
resin mainly for specialty milk products and ultra-high temperature milk packaging
Successful development of Extrusion Blow Moulding (EBM) grade of PET.
Successful development and commercialisation of low antimony PET for fibre
Design, development and installation of manufacturing facility for eco-friendly
polyester polymerisation catalyst at Hazira. The catalyst required is manufactured for
Development of sparkle polyesterfibre for fancy yarn and development of ne denier
hollowfibre for winter wear.
Polyesterfibre developed for Acquisition Distribution Layer (ADL) application.
Development of specialty polyesterfibre for asbestos replacement.
Development of RecoSilk polyesterfibre and lament for low temperature dyeing for
handloom sector. Development of polymerisation reactor models and their utilisation in
polyester plants for process optimisation / troubleshooting.
Biofuels and Bio-Chemicals
Development of Green Bio crude' from algae using sea water, sunlight and low cost
Development of high yielding biofuel hybrid crops. Development of high yielding, waste
land based non- edible crops for large scale cultivation for production of
In-house research and external technology for converting abundantly available
cellulosic biomass in India to fuels and chemicals.
Application of biotechnology to enhance the productivity of biofuels species.
Testing the best hybrids produced by us and others at different agro-climatic zones to
identify most productive cultivators.
Popularising the cultivation of bio-fuel crops by growers by conducting method and
varietal demonstrations. Genetic modifications, synthetic biology, high throughput
screening and metabolic ux analysis for biomolecule production.
Developed a web portal (algorithm) for predicting genes for improving industrial traits
for biofuel production.
Other R&D Activities
Development of indigenous Polymer Electrolyte Membrane (PEM) fuel cell technology.
Work is underway to develop a technology to produce methane from unminable, underground
coal reserves. If the technology is successful, it will help increase production of
One step process for production of Carbon Nano Tubes (CNT) for non-woven mats (NWM),
Advance Process Control (APC)/ Real Time
Optimisation (RTO) implementation in all our major manufacturing facilities.
Modelling and simulation, scale up support and advance trouble shooting.
Development and use of online soft sensor for I.V. measurement in SSP reactor.
2. THE BENEFITS DERIVED LIKE PRODUCT IMPROVEMENT, COST REDUCTION, PRODUCT
DEVELOPMENT OR IMPORT SUBSTITUTION
The potential benefits derived from R&D and Technology absorption, adoption and
innovation initiatives in FY 2016-17 is approximately Rs. 295 crore.
3. INFORMATION REGARDING IMPORTED TECHNOLOGY IMPORTED DURING LAST THREE YEARS
|Details of technology imported
||Technology import from
||Year of import
||Status implementation / absorption
|AMT-ADP process for azeotropic distillation
||Design and construction under progress
|Halogenated Isobutylene Isoprene Rubber (HIIR), JV with Sibur
||Basic engineering package is completed.
|SSP and IDY Spinning
||Dalian, China and TMT, Japan
||Plant under commissioning
|Ethylene (Cracker) Ethane feed flexibility project
||Engineering, execution and start-up completed at Dahej. At Hazira and
Nagothane engineering completed and construction close to completion.
|Synthetic natural gas (SNG)
||Johnson Matthey, UK
||Plant under design and construction
|Hydro treatment of extract
||Plant under construction
|Impact Reactor facility at JMD DTA PP line B
||Plant construction nearing completion
4.EXPENDITURE INCURRED ON RESEARCH AND DEVELOPMENT
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
I ACTIVITIES RELATING TO EXPORT, INITIATIVES TO INCREASE EXPORTS, DEVELOPMENTS OF NEW
EXPORT MARKETS FOR PRODUCTS AND SERVICES AND EXPORT PLAN.
The Company has continued to maintain focus and avail of export opportunities based on
economic considerations. During the year, the Company has exports (FOB value) worth
1,38,856 crore (US$ 21.4 billion).
II TOTAL FOREIGN EXCHANGE EARNED AND USED
|Foreign Exchange earned in terms of actual inflows
|Foreign Exchange outgo in terms of actual outflows
Note: Actual inflows does not includes total savings in Foreign Exchange through
products manufactured by the Company and deemed exports amounting to 75,568 crore (US$