CORPORATE GOVERNANCE REPORT
"Between my past, the present and the future, there is one common factor: Relationship and Trust. This is the foundation of our growth."
- Founder Chairman Shri Dhirubhai H. Ambani
In accordance with Clause 49 of the Listing Agreement with BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE), the report containing the details of Corporate Governance systems and processes at Reliance Industries Limited is as follows:
At Reliance Industries Limited (RIL), Corporate Governance is all about maintaining a valuable relationship and trust with all stakeholders. We consider stakeholders as partners in our success, and we remain committed to maximizing stakeholders' value, be it shareholders, employees, suppliers, customers, investors, communities or policy makers. This approach to value creation emanates from our belief that sound governance system, based on relationship and trust, is integral to creating enduring value for all. We have a defined policy framework for ethical conduct of businesses. We believe that any business conduct can be ethical only when it rests on the six core values of Customer Value, Ownership Mindset, Respect, Integrity, One Team and Excellence.
STATEMENT ON COMPANY'S PHILOSOPHY ON CODE OF GOVERNANCE
Corporate Governance encompasses a set of systems and practices to ensure that the Company's affairs are being managed in a manner which ensures accountability, transparency and fairness in all transactions in the widest sense. The objective is to meet stakeholders' aspirations and societal expectations. Good governance practices stem from the dynamic culture and positive mindset of the organisation. We are committed to meet the aspirations of all our stakeholders. This is demonstrated in shareholder returns, high credit ratings, governance processes and an entrepreneurial performance focused work environment. Additionally, our customers have benefited from high quality products delivered at extremely competitive prices.
The essence of Corporate Governance lies in promoting and maintaining integrity, transparency and accountability in the management's higher echelons. The demands of Corporate Governance require professionals to raise their competence and capability levels to meet the expectations in managing the enterprise and its resources effectively with the highest standards of ethics. It has thus become crucial to foster and sustain a culture that integrates all components of good governance by carefully balancing the complex inter-relationship among the Board of Directors, Audit Committee, Finance, Compliance and Assurance teams, Auditors and the senior management. Our employee satisfaction is reflected in the stability of our senior management, low attrition across various levels and substantially higher productivity. Above all, we feel honoured to be integral to India's social development. Details of several such initiatives are available in the Report on Corporate Social Responsibility.
At RIL, we believe that as we move closer towards our aspirations of being a global corporation, our Corporate Governance standards must be globally benchmarked. Therefore, we have institutionalised the right building blocks for future growth. The building blocks will ensure that we achieve our ambition in a prudent and sustainable manner. RIL not only adheres to the prescribed Corporate Governance practices as per Clause 49 of the Listing Agreement with the Stock Exchanges in India (Listing Agreement), but is also committed to sound Corporate Governance principles and practices. It constantly strives to adopt emerging best practices being followed worldwide. It is our endeavour to achieve higher standards and provide oversight and guidance to the management in strategy implementation, risk management and fulfilment of stated goals and objectives.
Over the years, we have strengthened governance practices. These practices define the way business is conducted and value is generated. Stakeholders' interests are taken into account, before making any business decision. RIL has the distinction of consistently rewarding its shareholders over 37 eventful years from its first IPO. Since then, RIL has moved from one big idea to another and these milestones continue to fuel its relentless pursuit of ever-higher goals.
On stand-alone basis, we have grown by a Compounded Annual Growth Rate (CAGR) of Revenues 25.8%, EBITDA 26.4% and Net Profit 27.4%. The financial markets have endorsed our sterling performance and the market capitalization has increased by CAGR of 31.7% during the same period. In terms of distributing wealth to our shareholders, apart from having a track record of uninterrupted dividend payout, we have also delivered consistent unmatched shareholder returns since listing. The result of our initiative is our ever widening reach and recall. Our shareholder base has grown from 52,000 after the IPO to a consolidated present base of around 2.8 million.
For decades, RIL is growing in step with India's industrial and economic development. The Company has helped transform the Indian economy with big-ticket projects and world-class execution. The quest to help elevate India's quality of life continues unabated. It emanates from a fundamental article of faith: 'What is good for India is good for Reliance'.
We believe, Corporate Governance is not just a destination, but a journey to constantly improve sustainable value creation. It is an upward-moving target that we collectively strive towards achieving. Our multiple initiatives towards maintaining the highest standards of governance are detailed in the following pages.
Appropriate Governance Structure with defined roles and responsibilities
The Company has put in place an internal governance structure with defined roles and responsibilities of every constituent of the system. The Company's shareholders appoint the Board of Directors, which in turn governs the Company. The Board has established seven Committees to discharge its responsibilities in an effective manner. RIL's Company Secretary acts as the Secretary to all the Committees of the Board constituted under the Companies Act, 1956 / Companies Act, 2013. The Chairman and Managing Director (CMD) provides overall direction and guidance to the Board. Concurrently, the CMD is responsible for overall implementation. In the operations and functioning of the Company, the CMD is assisted by four Executive Directors and a core group of senior level executives.
A majority of the Board, 7 out of 13, are Independent Directors. At RIL, it is our belief 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. The Board's actions and decisions are aligned with the Company's best interests. It is committed to the goal of sustainably elevating the Company's value creation. The Company has defined guidelines and an established framework for the meetings of the Board and Board Committees. These guidelines seek to systematise the decision-making process at the meeting of the Board and Board Committees in an informed and efficient manner.
The Board critically evaluates the Company's strategic direction, management policies and their effectiveness. The agenda for the Board reviews include strategic review from each of the Board committees, a detailed analysis and review of annual strategic and operating plans and capital allocation and budgets. Additionally, the Board reviews related party transactions, possible risks and risk mitigation measures, financial reports from the CFO and business reports from each of the sector heads. Frequent and detailed interaction sets the agenda and provides the strategic roadmap for the Company's future growth.
At RIL, we strive to conduct our business and strengthen our relationships in a manner that is dignified, distinctive and responsible. We adhere to ethical standards to ensure integrity, transparency, independence and accountability in dealing with all stakeholders. Therefore, we have adopted various codes and policies to carry out our duties in an ethical manner. Some of these codes and policies are:
• Code of Conduct
• Code of Conduct for Prohibition of Insider Trading
• Health, Safety and Environment (HSE) Policy
• Vigil Mechanism and Whistle Blower Policy
• Policy on Materiality of Related Party Transactions and on Dealing with Related Party Transactions
• Corporate Social Responsibility Policy
• Policy for Selection of Directors and determining Directors Independence
• Remuneration Policy for Directors, Key Managerial Personnel and other Employees
• Policy for determining Material Subsidiaries
Audits and internal checks and balances
Deloitte Haskins & Sells LLP, Chartered Accountants, M/s. Chaturvedi & Shah, Chartered Accountants, one of India's leading audit firms and a member of the Nexia's global network of independent accounting and consulting firms and M/s. Rajendra & Co., Chartered Accountants, Member of Prime Global, an association of Independent Accounting Firms, audit the accounts of the Company. The Company has an Internal Audit Cell besides external firms acting as independent internal auditors that reviews internal controls and operating systems and procedures. A dedicated Legal Compliance Cell ensures that the Company conducts its businesses with high standards of legal, statutory and regulatory compliances. RIL has instituted a legal compliance programmer in conformity with the best international standards, supported by a robust online system that covers the Company's manufacturing units as well as its subsidiaries. The purview of this system includes various statutes, such as industrial and labour laws, taxation laws, corporate and securities laws and health, safety and environment regulations.
At the heart of our processes is the extensive use of technology. This ensures robustness and integrity of financial reporting and internal controls, allows optimal use and protection of assets, facilitates accurate and timely compilation of financial statements and management reports and ensures compliance with statutory laws, regulations and company policies.
Management Initiatives for Controls and Compliance
The Company has established the Reliance Management System (RMS) as part of its transformation agenda. RMS incorporates an integrated framework for managing risks and internal controls. The internal financial controls have been documented, embedded and digitised in the business processes. Internal controls are regularly tested for design and operating effectiveness.
Best Corporate Governance practices
RIL maintains the highest standards of Corporate Governance. It is the Company's constant endeavour to adopt the best Corporate Governance practices keeping in view the international codes of Corporate Governance and practices of well-known global companies. Some of the best implemented global governance norms include the following:
• The Company has a designated Lead Independent Director with a defined role.
• All securities related filings with Stock Exchanges and SEBI are reviewed every quarter by the Company's Stakeholders' Relationship Committee of Directors.
• The Company has independent Board Committees for matters related to Corporate Governance and stakeholders' interface and nomination of Board members.
• The Company's internal audit is also conducted by independent auditors.
• The Company also undergoes quarterly secretarial audit conducted by an independent company secretary who is in whole-time practice. The quarterly secretarial audit reports are placed before the Board and the annual secretarial audit report placed before the Board, is included in the Annual Report.
Business and Functional Risk and Assurance Committees (BRACs)
To have a better assessment of the business and functional risks and to monitor risk mitigation effectiveness based on risk evaluation, the concept of BRACs was introduced comprising senior management personnel in the said committee.
RIL's sustainability reporting journey
RIL commenced annual reporting on its triple-bottom-line performance from the Financial Year 2004-05. All its sustainability reports are externally assured and Global Reporting Initiative (GRI) application level checked. The maiden report received 'in-accordance' status from GRI and all subsequent reports are 'GRI G3 Checked A+' application level reports. From Financial Year 2006-07, in addition to referring GRI G3 Sustainability Reporting Guidelines, RIL refers to the American Petroleum Institute / the International Petroleum Industry Environmental Conservation Association Sustainability Reporting Guidelines and the United Nations Global Compact Principles. RIL has also aligned its sustainability activities with the focus areas of the World Business Council for Sustainable Development. From the Financial Year 201112, Reliance adopted the newly published GRI G3.1 guidelines and is additionally referring to GRI G3.1 - Oil & Gas Sector Supplement. RIL has aligned its sustainability report with the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business framed by the Government of India.
Working towards Planet, People, Product, Processes and Profit
RIL works towards attaining a sustained financial bottom line along with enhancing the natural human capital and product development. It is committed to reduce its negative impacts and enhance its positive impacts on the society as well as the natural environment.
RIL supports life cycle assessment studies being done by Indian Centre for Plastics in the Environment (ICPE) and also works with the Bureau of Indian Standards for formulating standards and guidelines.
In addition to making a positive economic contribution to the nation and society at large, it has focused its energies on identifying specific impact areas. It endeavours to alleviate the underprivileged and marginalized sections of the society and has an active engagement with them to ensure their holistic development.
It aims to develop innovative products and processes to sustain its growth momentum. It also invests in R&D across its businesses, to serve the current and emerging needs of growth and efficiency of its businesses, and to develop new path - breaking technologies.
Social, Environmental and Economic Responsibilities
RIL is committed to create value for the nation and enhance the quality of life across the entire socioeconomic spectrum. RIL believes that Corporate Social Responsibility extends beyond the ambit of business and should focus on a broad portfolio of assets - human, physical, environmental and social. RIL gives utmost importance to conservation of the natural capital at its operations. RIL is committed to responsible stewardship of the natural resources to conduct its operations in a sustainable manner. To strengthen its commitment to responsible business, the Board of the Company has adopted Business Responsibility Framework based on the principles of National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVG) as issued by the Ministry of Corporate Affairs, Government of India. In sync with the same and Clause 55 of the Listing Agreement, a Business Responsibility Report is attached forming part of the Annual Report. This Report is in addition to RIL's Sustainability Reporting in accordance with Global Reporting Initiative (GRI).
The Board recognises the importance of two-way communication with shareholders and giving a balanced report of results and progress and responding to questions and issues raised in a timely and consistent manner. RIL's corporate website (www.ril.com) has information for institutional and retail shareholders alike. Shareholders seeking information related to their shareholding may contact the Company directly or through any of the Investor service centres of the Company's Registrars and Transfer Agents spread over 82 cities across India, details of which are available on the Company's website. RIL ensures that complaints and suggestions of its shareholders are responded to in a timely manner. A comprehensive and informative shareholders' referencer is appended to this Annual Report.
Role of the Company Secretary in overall governance process
The Company Secretary plays a key role in ensuring that the Board (including committees thereof) procedures are followed and regularly reviewed. The Company Secretary ensures that all relevant information, details and documents are made available to the Directors and senior management for effective decision-making at the meetings. The Company Secretary is primarily responsible to assist and advise the Board in the conduct of affairs of the Company, to ensure compliance with applicable statutory requirements and Secretarial Standards, to provide guidance to directors and to facilitate convening of meetings. He interfaces between the management and regulatory authorities for governance matters.
Observance of the Secretarial Standards issued by the Institute of Company Secretaries of India
The Institute of Company Secretaries of India (ICSI), one of India's premier professional bodies, has issued Secretarial Standards on important aspects like Board meetings,
General meetings, Payment of Dividend, Maintenance of Registers and Records, Minutes of Meetings, Transmission of Shares and Debentures, Passing of Resolutions by Circulation, Affixing of Common Seal and Board's Report. Although these standards, as of now, are recommendatory in nature, the Company substantially adheres to these standards voluntarily.
BOARD OF DIRECTORS
Board composition and category of Directors
Selection of Independent Directors
Considering the requirement of skill sets on the Board, eminent people having an independent standing in their respective field/profession, and who can effectively contribute to the Company's business and policy decisions are considered by the Human Resources, Nomination and Remuneration Committee, for appointment, as Independent Directors on the Board. The Committee, inter alia, considers qualification, positive attributes, area of expertise and number of Directorships and Memberships held in various committees of other companies by such persons in accordance with the Company's Policy for Selection of Directors and determining Directors' independence. The Board considers the Committee's recommendation, and takes appropriate decision.
Every Independent Director, at the first meeting of the Board in which he participates as a Director and thereafter at the first meeting of the Board in every financial year, gives a declaration that he meets the criteria of independence as provided under law.
Familiarisation programmes for Board Members
The Board members are provided with necessary documents/brochures, reports and internal policies to enable them to familiarise with the Company's procedures and practices.
Periodic presentations are made at the Board and Board Committee Meetings, on business and performance updates of the Company, global business environment, business strategy and risks involved. Detailed presentations on the Company's business segments were made at the separate meetings of the Independent Directors held during the year.
Quarterly updates on relevant statutory changes and landmark judicial pronouncements encompassing important laws are regularly circulated to the Directors. Site visits to various plant locations are organized for the Directors to enable them to understand the operations of the Company.
The details of such familiarization programmes for Independent Directors are posted on the website of the Company and can be accessed at <http://www.ril.com/getattachment/3b0559bd-20fd->4e3e-8a35-1c0a8f090224/Familiarisation-Programme-for-Independent-Director.aspx
Lead Independent Director
The Company's Board of Directors has designated Shri Mansingh L. Bhakta as the Lead Independent Director. The Lead Independent Director's role is as follows:
• To preside over all meetings of Independent Directors
• To ensure there is an adequate and timely flow of information to Independent Directors
• To liaise between the Chairman and Managing Director, the Management and the Independent Directors
• To preside over meetings of the Board and Shareholders when the Chairman and Managing Director is not present, or where he is an interested party
• To perform such other duties as may be delegated to the Lead Independent Director by the Board/ Independent Directors
Meetings of Independent Directors
The Company's Independent Directors meet at least once in every financial year without the presence of Executive Directors or management personnel. Such meetings are conducted informally to enable Independent Directors to discuss matters pertaining to the Company's affairs and put forth their views to the Lead Independent Director. The Lead Independent Director takes appropriate steps to present Independent Directors' views to the Chairman and Managing Director.
Six meetings of Independent Directors were held during the year.
Code of Conduct
The Company has in place a comprehensive Code of Conduct (the Code) applicable to all the employees and Non-executive Directors including Independent Directors. The Code is applicable to Non-executive Directors including Independent Directors to such extent as may be applicable to them depending on their roles and responsibilities. The Code gives guidance and support needed for ethical conduct of business and compliance of law. The Code reflects the values of the Company viz. - Customer Value, Ownership Mind-set, Respect, Integrity, One Team and Excellence.
A copy of the Code has been put on the Company's website (www.ril.com). The Code has been circulated to Directors and Management Personnel, and its compliance is affirmed by them annually.
A declaration signed by the Company's Chairman and Managing Director is published in this Report.
A brief resume of Directors, nature of their expertise in specific functional areas and names of companies in which they hold Directorships, Memberships/ Chairmanships of Board Committees, and shareholding in the Company are provided in this Report.
BOARD MEETINGS, BOARD COMMITTEE MEETINGS AND PROCEDURES
Institutionalized decision-making process
The Board of Directors is the apex body constituted by shareholders for overseeing the Company's overall functioning. The Board provides and evaluates the Company's strategic direction, management policies and their effectiveness, and ensures that shareholders' long-term interests are being served.
The Board has constituted seven Committees, namely Audit Committee, Human Resources, Nomination and Remuneration Committee, Corporate Social Responsibility and Governance Committee, Stakeholders' Relationship Committee, Health, Safety and Environment Committee, Finance Committee and Risk Management Committee. The Board is authorised to constitute additional functional Committees, from time to time, depending on business needs.
The Company's internal guidelines for Board/Board Committee meetings facilitate the decision making process at its meetings in an informed and efficient manner. The following sub-sections deal with the practice of these guidelines at RIL.
Scheduling and selection of agenda items for Board meetings
Minimum five pre-scheduled Board meetings are held annually. Additional Board meetings are convened by giving appropriate notice to address the Company's specific needs. In case of business exigencies or urgency of matters, resolutions are passed by circulation.
The meetings are usually held at the Company's office at Maker Chambers IV, 222 Nariman Point, Mumbai 400 021.
The Company's various business heads / service heads are advised to schedule their work plans well in advance, particularly with regard to matters requiring discussion/ approval/decision at Board/Board Committee meetings. Such matters are communicated by them to the Company Secretary in advance so that they are included in the agenda for Board/Board Committee meetings.
The Board is given presentations covering Finance, Sales, Marketing, the Company's major business segments and their operations, overview of business operations of major subsidiary companies, global business environment, the Company's business areas, including business opportunities and strategy and risk management practices before taking on record the Company's quarterly/annual financial results.
The items / matters required to be placed before the Board, inter alia, include:
• Annual operating plans of businesses and budgets including capital budgets and any updates
• Quarterly results of the Company and its operating divisions or business segments
• Company's annual Financial Results, Financial Statements, Auditors' Report and Board's Report
• Minutes of meetings of the Audit Committee and other Committees of the Board
• Show cause, demand, prosecution notices and penalty notices, which are materially important
• Fatal or serious accidents, dangerous occurrences, and any material effluent or pollution problems
• Any material default in financial obligations to and by the Company, or substantial non-payment for goods sold by the Company
• Any issue, which involves possible public or product liability claims of substantial nature, including any judgment or order, which may have passed strictures on the conduct of the Company or taken an adverse view regarding another enterprise that can have negative implications on the Company
Details of any joint venture or collaboration agreement
Transactions that involve substantial payment towards goodwill, brand equity or intellectual property
Significant labour problems and their proposed solutions. Any significant development in Human Resources/Industrial Relations front like implementation of Voluntary Retirement Scheme, etc.
Sale of material nature of investments, subsidiaries, assets, which is not in normal course of business.
Quarterly details of foreign exchange exposures, and steps taken by management to limit risks of adverse exchange rate movement, if material
Non-compliance of any regulatory, statutory or listing requirements, and shareholders' service, such as dividend non-payment, share transfer delay (if any), among others
Appointment, remuneration and resignation of Directors
Formation/reconstitution of Board Committees
Terms of reference of Board Committees
Minutes of Board meetings of unlisted subsidiary companies
Declaration of Independent Directors at the time of appointment/annually
Disclosure of Directors' interest and their shareholding
Appointment or removal of the Key Managerial Personnel
Appointment of Internal Auditors and Secretarial Auditors
Quarterly / Annual Secretarial Audit reports submitted by Secretarial Auditors
Quarterly summary of all long-term borrowings made, bank guarantees issued and loans and investments made
Significant changes in accounting policies and internal controls
Takeover of a company or acquisition of a controlling or substantial stake in another company
Statement of significant transactions, related party transactions and arrangements entered by unlisted subsidiary companies
Corporate Overview Management Review Governance Financial Statements Shareholder Information 127
• Corporate Governance Report
• Issue of securities including debentures
• Recommending appointment of and fixing of remuneration of the Auditors as recommended by the Audit Committee
• Internal Audit findings and External Audit Reports (through the Audit Committee)
• Proposals for major investments, mergers, amalgamations and reconstructions
• Status of business risk exposures, its management and related action plans
• Making of loans and investment of surplus funds
• Borrowing of monies, giving guarantees or providing security in respect of loans
• Buyback of securities by the Company
• Diversify the business of the Company
• Brief on statutory developments, changes in government policies, among others with impact thereof, Directors' responsibilities arising out of any such developments
• Compliance Certificate certifying compliance with all laws as applicable to the Company
• Reconciliation of Share Capital Audit Report under SEBI (Depositories and Participants) Regulations, 1996
• Brief on information disseminated to the press
The Chairman of the Board and Company Secretary, in consultation with other concerned members of the senior management, finalise the agenda for Board meetings.
Board material distributed in advance
The agenda and notes on agenda are circulated to Directors in advance, and in the defined agenda format. All material information is incorporated in the agenda for facilitating meaningful and focused discussions at the meeting. Where it is not practicable to attach any document to the agenda, it is tabled before the meeting with specific reference to this effect in the agenda. In special and exceptional circumstances, additional or supplementary item(s) on the agenda are permitted.
Recording minutes of proceedings at Board and Committee meetings
The Company Secretary records minutes of proceedings of each Board and Committee meeting. Draft minutes are circulated to Board/ Board Committee members for their comments. The minutes are entered in the Minutes Book within 30 days from the conclusion of the meeting.
Post meeting follow-up mechanism
The guidelines for Board and Board Committee meetings facilitate an effective post meeting follow-up, review and reporting process for decisions taken by the Board and Board Committees thereof. Important decisions taken at Board/Board Committee meetings are communicated promptly to the concerned departments/divisions. Action-taken report on decisions/minutes of the previous meeting(s) is placed at the succeeding meeting of the Board/Board Committee for noting.
The Company Secretary, while preparing the agenda, notes on agenda and minutes of the meeting(s), is responsible for and is required to ensure adherence to all applicable laws and regulations, including the Companies Act, 1956/ Companies Act, 2013 read with rules issued there under, as applicable and the Secretarial Standards recommended by the Institute of Company Secretaries of India.
Procedure at Committee Meetings
The Company's guidelines relating to Board meetings are applicable to Committee meetings as far as practicable. Each Committee has the authority to engage outside experts, advisors and counsels to the extent it considers appropriate to assist in its function. Minutes of proceedings of Committee meetings are circulated to the Directors and placed before Board meetings for noting.
Terms of Reference and other details of Board Committees
Composition of the Committee
Powers of the Audit Committee
• To investigate any activity within its terms of reference
• To seek information from any employee
• To obtain outside legal or other professional advice
• To secure attendance of outsiders with relevant expertise, if it considers necessary
Role of the Audit Committee, inter alia, includes the following:
• Oversight of the Company's financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible
• Recommending the appointment, remuneration and terms of appointment of statutory auditors including cost auditors of the Company
• Approving payment to statutory auditors, including cost auditors, for any other services rendered by them
• Reviewing with the management, the annual financial statements and auditors report thereon before submission to the Board for approval, with particular reference to:
• Matters required to be included in the Directors' Responsibility Statement to be included in the Board's Report in terms of clause (c) of sub-section 3 of Section 134 of the Companies Act, 2013;
• Changes, if any, in accounting policies and practices and reasons for the same;
• Major accounting entries involving estimates based on the exercise of judgement by the management;
• Significant adjustments made in financial statements arising out of audit findings;
• Compliance with listing and other legal requirements relating to financial statements;
• Disclosure of any related party transactions; and
• Qualifications in draft audit report.
• Reviewing, with the management, the quarterly financial statements before submission to the Board for approval
• Monitoring and reviewing with the management, the statement of uses/ application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilised for purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter
• Reviewing and monitoring the auditors independence and performance, and effectiveness of audit process
• Approval or any subsequent modification of transactions of the Company with related parties
• Scrutiny of inter-corporate loans and investments
• Valuation of undertakings or assets of the Company, wherever it is necessary
• Evaluation of internal financial controls and risk management systems
• Reviewing, with the management, the performance of statutory auditors and internal auditors, adequacy of internal control systems
• Formulating the scope, functioning, periodicity and methodology for conducting the internal audit
• Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit
• Discussion with internal auditors of any significant findings and follow-up thereon
• Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board
• Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post audit discussion to ascertain any area of concern
• To look into the reasons for substantial defaults, if any, in the payment to depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors
• To review the functioning of the Vigil Mechanism and Whistle Blower mechanism
• Approval of appointment of the CFO (i.e. the whole-time Finance Director or any other person heading the finance function or discharging that function) after assessing qualifications, experience and background, etc. of the candidate
• Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
• Reviewing financial statements, in particular the investments made by the Company's unlisted subsidiaries
• Reviewing the following information:
• The Management Discussion and Analysis of financial condition and results of operations;
• Statement of significant related party transactions (as defined by the Audit Committee), submitted by management;
• Management letters/letters of internal control weaknesses issued by the statutory auditors;
• Internal audit reports relating to internal control weaknesses; and
• Reviewing the appointment, removal and terms of remuneration of the Chief internal auditor / internal auditor(s).
The representatives of statutory auditors are permanent invitees to the Audit Committee Meetings. They have attended all the Audit Committee meetings held during the year. Executives of Accounts Department, Finance Department, Corporate Secretarial Department and Internal Audit department and representatives of internal auditors attend Audit Committee Meetings. The cost auditors attend the Audit Committee Meeting where cost audit reports are discussed. The due date for filing the cost audit reports in XBRL mode for the financial year ended March 31, 2014 was September 27, 2014 and the cost audit reports were filed by the Lead Cost Auditor on September 23, 2014. The due date for filing the cost audit reports for the financial year ended March 31, 2015 is October 30, 2015.
The internal auditor reports directly to the Audit Committee.
The Chairman of the Audit Committee was present at the last Annual General Meeting held on June18, 2014.
Nine meetings (including one adjourned meeting) of the Audit Committee were held during the year. The details of meetings and attendance are given on page no. 131 of this Report.
Terms of Reference of the Committee, inter alia, includes the following:
• To identify persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down and to recommend to the Board their appointment and/or removal
• To carry out evaluation of every Director's performance
• To formulate the criteria for determining qualifications, positive attributes and independence of a Director, and recommend to the Board a policy, relating to the remuneration for the Directors, key managerial personnel and other employees
• To formulate the criteria for evaluation of Independent Directors and the Board
• To devise a policy on Board diversity
• To recommend/review remuneration of the Managing Director(s) and Whole-time Director(s) based on their performance and defined assessment criteria
• To administer, monitor and formulate detailed terms and conditions of the Employees' Stock Option Scheme including:
• the quantum of options to be granted under Employees' Stock Option Scheme per employee and in aggregate;
• the conditions under which option vested in employees may lapse in case of termination of employment for misconduct;
• the exercise period within which the employee should exercise the option, and that the option would lapse on failure to exercise the option within the exercise period;
• the specified time period within which the employee shall exercise the vested options in the event of termination or resignation of an employee;
• the right of an employee to exercise all options vested in him at one time or various points of time within the exercise period;
• the procedure for making a fair and reasonable adjustment to the number of options and to the exercise price in case of corporate actions, such as rights issues, bonus issues, merger, sale of division and others;
• the granting, vesting and exercising of options in case of employees who are on long leave; and
• the procedure for cashless exercise of options.
• To carry out any other function as is mandated by the Board from time to time and / or enforced by any statutory notification, amendment or modification, as may be applicable;
• To perform such other functions as may be necessary or appropriate for the performance of its duties.
Six meetings of the Human Resources, Nomination and Remuneration Committee were held during the year. The details of meeting and attendance are given on page no. 131 of this Report.
The details relating to remuneration of Directors, as required under Clause 49 of the Listing Agreement, have been given under a separate section, viz. 'Directors' Remuneration' in this report.
Stakeholders' Relationship Committee
Composition of the Committee
The 'Stakeholders' Relationship Committee' (SR Committee) was constituted by the Board on April 18, 2014 consequent to the dissolution of the 'Shareholders'/ Investors' Grievance Committee' (SIG Committee). The SR Committee is primarily responsible to review all matters connected with the Company's transfer of securities and redressal of shareholders' / investors' / security holders' complaints. The Committee also monitors the implementation and compliance with the Company's Code of Conduct for prohibition of Insider Trading.
The SR Committee's composition and the terms of reference meet with the requirements of Clause 49 of the Listing Agreement and provisions of the Companies Act, 2013.
Terms of Reference of the Committee, inter alia, includes the following:
• Oversee and review all matters connected with the transfer of the Company's securities
• Approve issue of the Company's duplicate share / debenture certificates
• Consider, resolve and monitor redressal of investors' / shareholders' / security holders' grievances related to transfer of securities, non-receipt of Annual Report, non-receipt of declared dividend etc.
• Oversee the performance of the Company's Registrars and Transfer Agents
• Recommend methods to upgrade the standard of services to investors
• Monitor implementation and compliance with the Company's Code of Conduct for Prohibition of Insider Trading
• Carry out any other function as is referred by the Board from time to time and / or enforced by any statutory notification / amendment or modification as may be applicable
• Perform such other functions as may be necessary or appropriate for the performance of its duties
Four meetings (including one of SIG Committee) of the SR Committee were held during the year. The details of meetings and attendance are given on page no. 131 of this Report.
Shri K. Sethuraman, Group Company Secretary and Chief Compliance Officer, is the Compliance Officer for complying with requirements of Securities Laws and Listing Agreements with Stock Exchanges.
Prohibition of Insider Trading
With a view to regulate trading in securities by the directors and designated employees, the Company has adopted a Code of Conduct for Prohibition of Insider Trading.
Investor Grievance Redressal
The number of complaints received and resolved to the satisfaction of investors during the year under review and their break-up are as under:
Composition of the Committee
The Committee's prime responsibility is to assist the Board in discharging its social responsibilities by way of formulating and monitoring implementation of the framework of 'corporate social responsibility policy', observe practices of Corporate Governance at all levels, and to suggest remedial measures wherever necessary. The Board has also empowered the Committee to look into matters related to sustainability and overall governance.
The Committee's constitution and terms of reference meet with the requirements of the Companies Act, 2013.
Terms of Reference of the Committee, inter alia, includes the following:
• To formulate and recommend to the Board, a Corporate Social Responsibility (CSR) Policy indicating activities to be undertaken by the Company in compliance with provisions of the Companies Act, 2013 and rules made thereunder
• To recommend the amount of expenditure to be incurred on the CSR activities
• To monitor the implementation of the CSR Policy of the Company from time to time
• To approve the Corporate Sustainability Reports and oversee the implementation of sustainability activities
• To oversee the implementation of polices contained in the Business Responsibility Policy Manual and to make any changes / modifications, as may be required, from time to time and to review and recommend the Business Responsibility Reports (BRR) to the Board for its approval
• To observe practices of Corporate Governance at all levels and to suggest remedial measures wherever necessary
• To ensure compliance with Corporate Governance norms prescribed under Listing Agreements with Stock Exchanges, the Companies Act and other statutes or any modification or re-enactment thereof
• To advise the Board periodically with respect to significant developments in the law and practice of Corporate Governance and to make recommendations to the Board for appropriate revisions to the Company's Corporate Governance Guidelines
• To monitor the Company's compliance with Corporate Governance Guidelines and applicable laws and regulations and make recommendations to the Board on all such matters and on any corrective action to be taken, as the Committee may deem appropriate
• To review and assess the adequacy of the Company's Corporate Governance Manual, Code of Conduct for Directors and Senior Management, Code of Ethics and other internal policies and guidelines and monitor that principles described therein are being incorporated into the Company's culture and business practices
• To formulate / approve codes and / or policies for better governance
• To provide correct inputs to the media so as to preserve and protect the Company's image and standing
• To disseminate factually correct information to investors, institutions and the public at large
• To establish oversight on important corporate communication on behalf of the Company with the assistance of consultants / advisors, if necessary
• To ensure institution of standardised channels of internal communications across the Company to facilitate a high level of disciplined participation
• To carry out any other function as is mandated by the Board from time to time and/or enforced by any statutory notification, amendment or modification as may be applicable or as may be necessary or appropriate for performance of its duties.
Four meetings of the Corporate Social Responsibility and Governance Committee were held during the year. The details of meetings and attendance are given on page no. 131 of this Report.
Health, Safety and Environment Committee
Composition of the Committee
The Health, Safety and Environment Committee is primarily responsible to monitor and ensure the highest standards of environmental, health and safety norms are maintained, and the Company's operations are in compliance with applicable pollution and environmental laws across all locations. The Committee fulfils its responsibilities by reviewing the management of health, safety, environmental and social impacts of the Company's various projects and operations.
Terms of Reference of the Committee, inter alia, includes the following:
• Monitoring and ensuring the highest standards of environmental, health and safety norms
• Ensuring compliance with applicable pollution and environmental laws at the Company's works / factories / locations by putting in place effective systems in this regard and reviewing the same periodically
• Reviewing, as the Committee deems appropriate, the Company's health, safety and environment related policy and making recommendations as necessary
• Reviewing the Company's performance on health, safety and environment related matters and suggesting improvements as the Committee may deem necessary
• Reviewing procedures and controls being followed at the Company's various manufacturing facilities and plants for compliance with relevant statutory provisions
• Reviewing regularly and making recommendations about changes to the charter of the Committee
• Obtaining or performing an annual evaluation of the Committee's performance and making appropriate recommendations.
Four meetings of the Health, Safety and Environment Committee were held during the year. The details of the meetings and attendance are given on page no. 131 of this Report.
Terms of Reference of the Committee, inter alia, includes the following:
• Review the Company's financial policies, risk assessment and minimisation procedures, strategies and capital structure, working capital and cash flow management, and make such reports and recommendations to the Board with respect thereto, as it may deem advisable
• Review banking arrangements and cash management
• Exercise all powers to borrow money (otherwise than by issue of debentures) within limits approved by the Board, and take necessary actions connected therewith, including refinancing for optimisation of borrowing costs
• Give guarantees/issue letters of comfort/providing securities within the limits approved by the Board
• Borrow money by way of loan and/or issue and allot bonds/notes denominated in one or more foreign currencies in international markets for the purpose of refinancing the existing debt, capital expenditure, general corporate purposes, including working capital requirements and possible strategic investments within limits approved by the Board
• Corporate Overview Management Review Governance Financial Statements Shareholder Information 135
• Corporate Governance Report
• Provide corporate guarantee/performance guarantee by the Company within the limits approved by the Board
• Approve opening and operation of Investment Management Accounts with foreign banks and appoint them as agents, establishment of representative/sales offices in or outside India
• Carry out any other function as is mandated by the Board from time to time and/or enforced by any statutory notification, amendment or modification as may be applicable
• Other transactions or financial issues that the Board may desire to have them reviewed by the Finance Committee
• Delegate authorities from time to time to the executives/ authorised persons to implement the Committee's decisions
• Review regularly and make recommendations about changes to the charter of the Committee
Four meetings of the Finance Committee were held during the year. The details of meetings and attendance are given on page no. 131 of this Report.
Risk Management Committee
Composition of the Committee
The Risk Management Committee (RM Committee) was constituted by the Board on October 13, 2014 adhering to the requirements of the Companies Act, 2013 and Clause 49 of the Listing Agreement. The Committee's prime responsibility is to implement and monitor the risk management plan and policy of the Company. The Committee's constitution meets with the requirements of Clause 49 of the Listing Agreement.
Role and Responsibilities of the Committee includes the following:
• Framing of Risk Management Plan and Policy
• Overseeing implementation of Risk Management Plan and Policy
• Monitoring of Risk Management Plan and Policy
• Validating the process of risk management
• Validating the procedure for Risk Minimization
• Periodically reviewing and evaluating the Risk Management Policy and practices with respect to risk assessment and risk management processes
• Continually obtaining reasonable assurance from management that all known and emerging risks have been identified and mitigated or managed
• Performing such other functions as may be necessary or appropriate for the performance of its oversight function
One meeting of the Committee was held during the year and the details of meeting and attendance are given on page no. 131 of this Report.
The Company's Remuneration Policy for Directors, Key Managerial Personnel and other employees is annexed as Annexure IIIB to the Directors' Report. Further, the Company has devised a Policy for performance evaluation of Independent Directors, Board, Committees and other individual Directors.
The Company's remuneration policy is directed towards rewarding performance based on review of achievements periodically. The remuneration policy is in consonance with the existing industry practice.
Remuneration paid to the Chairman and Managing Director and Whole-time Directors during 2014-15:
The Chairman and Managing Director's compensation has been set at Rs. 15 crore as against Rs. 38.86 crore as approved, reflecting his desire to continue to set a personal example for moderation in managerial compensation levels.
Performance criteria for two Executive Directors, entitled for Performance Linked Incentive (PLI), are determined by the Human Resources, Nomination and Remuneration Committee.
The tenure of office of the Managing Director and Whole-time Directors is for five years from their respective dates of appointments, and can be terminated by either party by giving three months notice in writing. There is no separate provision for payment of severance fees.
Subsidiary Companies' Monitoring Framework
All subsidiary companies are Board managed with their Boards having the rights and obligations to manage such companies in the best interest of their stakeholders. The Company does not have any material unlisted subsidiary, and hence, is not required to nominate an Independent Director of the Company on the Board of any subsidiary. The Company monitors performance of subsidiary companies, inter alia, by the following means:
• Financial statements, in particular investments made by unlisted subsidiary companies, are reviewed quarterly by the Company's Audit Committee.
• Minutes of Board meetings of unlisted subsidiary companies are placed before the Company's Board regularly.
• A statement containing all significant transactions and arrangements entered into by unlisted subsidiary companies is placed before the Company's Board.
Prof. Dipak C. Jain and Shri Adil Zainulbhai, the Company's Independent Directors have been appointed as Independent Directors on the Board of Reliance Retail Ventures Limited and Reliance Jio Infocomm Limited, subsidiaries of the Company
Disclosures on materially significant related party transactions, i.e. the Company's transactions that are of material nature, with its Promoters, Directors and the management, their relatives or subsidiaries, among others that may have potential conflict with the Company's interests at large
During the period under review, the Company had not entered into any material transaction with any of its related parties.
None of the transactions with any of related parties were in conflict with the Company's interest. Attention of members is drawn to the disclosure of transactions with related parties set out in Note No. 32 of Standalone Financial Statements, forming part of the Annual Report.
The Company's major related party transactions are generally with its subsidiaries and associates. The related party transactions are entered into based on considerations of various business exigencies, such as synergy in operations, sectoral specialization and the Company's long-term strategy for sect oral investments, optimization of market share, profitability, legal requirements, liquidity and capital resources of subsidiaries and associates.
All related party transactions are negotiated on an arms-length basis, and are intended to further the Company's interests.
Details of non-compliance by the Company, penalties, strictures imposed on the Company by Stock Exchange or SEBI, or any statutory authority, on any matter related to capital markets, during the last three years
During the last three years, SEBI had issued a Show Cause Notice in connection with the alleged nondisclosure of the diluted Earnings Per Share in the filing with Stock Exchanges in respect of warrants issued in April, 2007. The Adjudicating Officer of SEBI imposed an aggregate monetary penalty of Rs. 13 crore. The Company has challenged this order before the Hon'ble Securities Appellate Tribunal
Whistle Blower policy
The Company promotes ethical behaviour in all its business activities and has put in place a mechanism for reporting illegal or unethical behavior. The Company has a Vigil mechanism and Whistle blower policy under which the employees are free to report violations of applicable laws and regulations and the Code of Conduct. The reportable matters may be disclosed to the Ethics and Compliance Task Force which operates under the supervision of the Audit Committee. Employees may also report to the Chairman of the Audit Committee. During the year under review, no employee was denied access to the Audit Committee.
Means of Communication
Quarterly results: The Company's quarterly results are published in 'Financial Express'/'Indian Express' and 'Navshakti', and are displayed on its website (www.ril.com).
News releases, presentations, among others: Official news releases and official media releases are sent to Stock Exchanges.
Presentations to institutional investors / analysts:
Detailed presentations are made to institutional investors and financial analysts on the Company's unaudited quarterly as well as audited annual financial results. These presentations are also uploaded on the Company's website (www.ril.com).
Website: The Company's website (www.ril.com) contains a separate dedicated section 'Investor Relations' where shareholders' information is available. The Company's Annual Report is also available in a user-friendly and downloadable form.
Annual Report: The Annual Report containing, inter alia, Audited Financial Statement, Consolidated Financial Statements, Directors' Report, Auditors' Report and other important information is circulated to members and others entitled thereto. The Management's Discussion and Analysis (MD&A) Report forms part of the Annual Report and is displayed on the Company's website (www.ril.com).
Chairman's Communiqué: The printed copy of the Chairman's speech is distributed to shareholders at Annual General Meetings. The document is also placed on the Company's website (www.ril.com) and sent to Stock Exchanges.
Reminder to Investors: Reminders for unclaimed shares, unpaid dividend/unpaid interest or redemption amount on debentures are sent to shareholders/debenture holders as per records every year.
Corporate Filing and Dissemination System (CFDS):
The CFDS portal jointly owned, managed and maintained by BSE and NSE is a single source to view information filed by listed companies. All disclosures and communications to BSE and NSE are filed electronically through the CFDS portal. In particular, the Company informs BSE and NSE all price sensitive matters or such other matters which in its opinion are material and of relevance to the members.
NSE Electronic Application Processing System (NEAPS): The NEAPS is a web-based application designed by NSE for corporates. All periodical compliance filings like shareholding pattern, corporate governance report, media releases, among others are filed electronically on NEAPS.
BSE Corporate Compliance & Listing Centre (the 'Listing Centre'): BSE's Listing Centre is a web-based application designed for corporates. All periodical compliance filings like shareholding pattern, corporate governance report, media releases, among others are also filed electronically on the Listing Centre.
SEBI Complaints Redress System (SCORES): The investor complaints are processed in a centralised web-based complaints redress system. The salient features of this system are: Centralised database of all complaints, online upload of Action Taken Reports (ATRs) by concerned companies and online viewing by investors of actions taken on the complaint and its current status.
Designated Exclusive email-id: The Company has designated the following email-ids exclusively for investor servicing:
• For queries on Annual Report: firstname.lastname@example.org
• For queries in respect of shares in physical mode: email@example.com
Shareholders' Feedback Survey: The Company had sent feedback forms seeking shareholders' views on various matters relating to investor services and Annual Report 2013-14. The feedback received from shareholders was placed before the Stakeholders' Relationship Committee.
General Shareholder Information
Company Registration Details
The Company is registered in the State of Maharashtra, India. The Corporate Identification Number (CIN) allotted to the Company by the Ministry of Corporate Affairs (MCA) is L17110MH1973PLC019786.
Annual General Meeting
(Day, Date, Time and Venue)
Friday, June 12, 2015 at 11.00 a.m. Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020
Financial Year : April 1 to March 31
Financial Calendar (tentative): Results for the quarter ending
June 30, 2015 - Fourth week of July, 2015
September 30, 2015 - Third week of October, 2015
December 31, 2015 - Fourth week of January, 2016
March 31, 2016 - Fourth week of April, 2016
Annual General Meeting - June, 2016
Date of Book Closure : Tuesday, May 12, 2015 to Friday, May 15, 2015 (both days inclusive) for payment of dividend.
Dividend Payment Date : Credit/dispatch of dividend warrants between June 13, 2015 and June 19, 2015.
Listing on Stock Exchanges : Equity Shares BSE Limited (BSE)
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001 Scrip Code 500325
National Stock Exchange of India Limited (NSE)
''Exchange Plaza", Bandra-Kurla Complex, Bandra (E), Mumbai 400 051 Trading Symbol - RELIANCE EQ ISIN : INE002A01018
Corporate Overview Management Review Governance Financial Statements Shareholder Information 139
Global Depository Receipts (GDRs) Listing
Luxembourg Stock Exchange, 11, Avenue de la Porte-Neuve, L - 2227, Luxembourg.
Also traded on International Order Book System (London Stock Exchange) and PORTAL System (NASD, USA) Trading Symbol RILYP, CUSIP 759470107
The Bank of New York Mellon Corporation 101, Barclay Street, New York, NY 10286 USA
ICICI Bank Limited, Empire Complex, E7/F7, 1st Floor, 414, Senapati Bapat Marg, Lower Parel, Mumbai 400 013
Debt Securities Listing
The Wholesale Debt Market (WDM) Segment of BSE and NSE
Axis Bank Limited Axis House, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai 400 025
Axis Trustee Services Limited Axis House, 2nd Floor, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai 400 025
Payment of Listing Fees
Annual listing fee for the year 2015-16 has been paid by the Company to BSE and NSE. Annual maintenance and listing agency fee for the calendar year 2015 has been paid by the Company to the Luxembourg Stock Exchange.
Payment of Depository Fees
Annual Custody/Issuer fee for the year 2015-16 will be paid by the Company to NSDL and CDSL on receipt of the invoices.
Registrars and Transfer Agents
Karvy Computershare Private Limited Karvy Selenium Tower B, 6th Floor Plot 31-32, Gachibowli, Financial District. Nanakramguda, Hyderabad - 500 032 Tel: +91-40-67161700
Toll Free No.: 1-800-4258-998; Fax: +91-40-23114087 e-mail: firstname.lastname@example.org Website: www.karvy.com (Address changed w.e.f. April 14,2015) List of Investor Service Centres of Karvy Computershare Private Limited is available on the Company's website www.ril.com
Share Transfer System
Share transfers are processed and share certificates duly endorsed are delivered within a period of seven days from the date of receipt, subject to documents being valid and complete in all respects. The Board has delegated the authority for approving transfer, transmission, etc. of the Company's securities to the Managing Director and/or Company Secretary. A summary of transfer/transmission of securities of the Company so approved by the Managing Director/Company Secretary is placed at every Board meeting / Stakeholders' Relationship Committee. The Company obtains from a Company Secretary in Practice half-yearly certificate of compliance with the share transfer formalities as required under Clause 47(c) of the Listing Agreement and files a copy of the said certificate with Stock Exchanges.
Shares issued on Demerger
Consequent upon the demerger of the coal based, gas based, financial services and telecommunications undertakings/businesses of the Company in December, 2005, the shareholders of the Company were allotted equity shares of the four companies, namely, Reliance Energy Ventures Limited (REVL), Reliance Natural Resources Limited (RNRL), Reliance Capital Ventures Limited (RCVL) and Reliance Communication Ventures Limited (RCoVL) in the ratio of one equity share of each of the companies for every equity share held by shareholders except specified shareholders, in Reliance Industries Limited, as on the record date fixed for the purpose.
Accordingly, 122,31,30,422 equity shares each of REVL, RNRL, RCVL and RCoVL were allotted on January 27, 2006. 97.81% of Company's paid-up Equity Share Capital has been dematerialised up to March 31, 2015 (97.70% up to March 31, 2014). Trading in Equity Shares of the Company is permitted only in dematerialised form.
The Company's Equity Shares are among the most liquid and actively traded shares on the Indian Stock Exchanges. RIL shares consistently rank among the top few frequently traded shares, both in terms of the number of shares traded, as well as value.
Outstanding GDRs / Warrants and Convertible Bonds, Conversion Date and likely impact on equity
GDRs: Outstanding GDRs as on March 31, 2015 represent 10 44 04 190 equity shares constituting 3.23% of Company's paid-up Equity Share Capital. Each GDR represents two underlying equity shares in the Company. GDR is not a specific time-bound instrument and can be surrendered at any time and converted into the underlying equity shares in the Company. The shares so released in favour of the investors upon surrender of GDRs can either be held by investors concerned in their name or sold off in the Indian secondary markets for cash. To the extent of shares so sold in Indian markets, GDRs can be reissued under the available head room.
RIL GDR Programme - Important Information
RIL GDRs are listed at the Luxembourg Stock Exchange. GDRs are traded on the International Order Book (IOB) of London Stock Exchange. GDRs are also traded amongst Qualified Institutional Investors in the Portal System of NASD, USA.
RIL GDRs are exempted securities under US Securities Law. RIL GDR program has been established under Rule 144A and Regulation S of the US Securities Act, 1933. Reporting is done under the exempted route of Rule 12g3-2(b) under the US Securities Exchange Act, 1934.
The Bank of New York Mellon is the Depository and ICICI Bank Limited is the Custodian of all the Equity Shares underlying the GDRs issued by the Company.
Employee Stock Options
The information on Options granted by the Company during the financial year 2014-15 and other particulars with regard to Employees' Stock Options are set out under Annexure IV to the Directors' Report
Refining & Marketing
Village Meghpar/ Padana, Taluka Lalpur, Jamnagar - 361 280, Gujarat, India
Jamnagar SEZ Unit
Village Meghpar/Padana, Taluka Lalpur, Jamnagar - 361 280, Gujarat, India
Allahabad Manufacturing Division
A/10-A/27, UPSIDC Industrial Area, P. O.T.S.L. Allahabad - 211 010, Uttar Pradesh, India
Barabanki Manufacturing Division
Dewa Road, P.O. Somaiya Nagar, Barabanki - 225 123, Uttar Pradesh, India
Dahej Manufacturing Division
P. O. Dahej- 392 130, Taluka: Vagra, District Bharuch, Gujarat, India
Hazira Manufacturing Division
Village Mora, P.O. Bhatha,
Surat-Hazira Road, Surat - 394 510, Gujarat, India
Hoshiarpur Manufacturing Division
Dharamshala Road, V.P.O. Chohal, District Hoshiarpur - 146 024, Punjab, India
Nagothane Manufacturing Division
P. O. Petrochemicals Township, Nagothane - 402 125, Roha Taluka, District Raigad, Maharashtra, India
Nagpur Manufacturing Division
Village: Dahali, Mouda ,Ramtek Road, Tehsil Mouda - 441 104, District Nagpur, Maharashtra, India
Patalganga Manufacturing Division
B-1 to B-5 & A3, MIDC Industrial Area, P.O. Rasayani, Patalganga - 410 220, District Raigad, Maharashtra, India
Silvassa Manufacturing Division
342, Kharadpada, P.O. Naroli - 396 235, Union Territory of Dadra and Nagar Haveli, India
Vadodara Manufacturing Division
P. O. Petrochemicals, Vadodara - 391 346, Gujarat, India
Oil & Gas
KG D6 Onshore Terminal
Village Gadimoga, Tallarevu Mandal, East Godavari District Gadimoga - 533 463, Andhra Pradesh, India
Oil & Gas Blocks
Panna Mukta, Mid and South Tapti, NEC-OSN-97/2, KG-DWN-98/3, CY-DWN-2001/2, CB-ONN-2003/1, and GS-OSN-2000/1
SP (West) - CBM - 2001/1, SP (East) - CBM - 2001/1
Coal Bed Methane Project (CBM)
Village & PO: Lalpur, Tehsil: Burhar,
District Shahdol, Madhya Pradesh - 484 110, India
Naroda Manufacturing Division
103/106, Naroda Industrial Estate, Naroda, Ahmedabad - 382 330, Gujarat, India
Address for Correspondence Investor Correspondence
For Shares/Debentures held in Physical form
Karvy Computershare Private Limited Karvy Selenium Tower B, 6th Floor Plot 31-32, Gachibowli, Financial District. Nanakramguda, Hyderabad - 500 032 Tel: +91-40-67161700
Toll Free No.: 1-800-4258-998; Fax: +91-40-23114087 e-mail: email@example.com Website: www.karvy.com (Address changed w.e.f. April 14,2015)
For Shares/Debentures held in Demat form
Investors' concerned Depository Participant(s) and /or Karvy Computershare Private Limited.
Any query on the Annual Report
Shri A. Anjeneyan Senior Vice President, Corporate Secretarial Reliance Industries Limited, 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai 400 021. e-mail: firstname.lastname@example.org
Transfer of unpaid/unclaimed amounts to Investor Education and Protection Fund
During the year under review, the Company has credited Rs. 9.89 crore to the Investor Education and Protection Fund (IEPF) pursuant to Section 205C of the Companies Act, 1956 read with the Investor Education and Protection Fund (Awareness and Protection of Investors) Rules, 2001.
The cumulative amount transferred to IEPF up to March 31, 2015 is Rs. 118.33 crore. Pursuant to the provisions of Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012, the Company has uploaded the details of unpaid and unclaimed amounts lying with the Company as on June 18, 2014 (date of last Annual General Meeting) on the Company's website (www.ril.com) and on the website of the Ministry of Corporate Affairs.
Equity Shares in the Suspense Account
In terms of Clause 5A(I) and Clause 5A(II) of the Listing Agreement, the Company reports the following details in respect of equity shares lying in the suspense accounts which were issued in demat form and physical form, respectively:
COMPLIANCE CERTIFICATE OF THE AUDITORS
Certificate from the Company's Auditors, M/s. Chaturvedi & Shah, Deloitte Haskins & Sells LLP and M/s. Rajendra & Co., confirming compliance with conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement, is attached to this Report.
ADOPTION OF MANDATORY AND NON-MANDATORY REQUIREMENTS OF CLAUSE 49
The Company has complied with all mandatory requirements of Clause 49 of the Listing Agreement. The Company has adopted following non-mandatory requirements of Clause 49 of the Listing Agreement:
Communication to Shareholders
Half-yearly reports covering financial results were sent to members at their registered addresses.
The Company is in the regime of unqualified financial statements.
Reporting of Internal Auditor
The Internal Auditor directly reports to the Audit Committee
Mukesh D. Ambani)
Chairman and Managing Director
Place : Mumbai
Date : April 17, 2015