Board’s Report

Dear Members,

The Board of Directors are pleased to present the Company’s Forty-first Annual
Report (Post-IPO) and the Company’s audited financial statements (standalone and
consolidated) for the financial year ended March 31, 2018.


Financial Results

The Company’s financial performance for the year ended March 31, 2018 is
summarised below:


  

    

    
STANDALONE
    
CONSOLIDATED
  
  

    

    
2017-18
    
2016-17
    
2017-18
    
2016-17
  
  

    

    
crore
    
US$
    
crore
    
US$
    
crore
    
US$
    
crore
    
US$
  
  

    

    

    
million*
    

    
million*
    

    
million*
    

    
million*
  
  

    
Profit Before Tax
    
45,725
    
7,016
    
40,777
    
6,288
    
49,426
    
7,584
    
40,034
    
6,173
  
  

    
Less: Current Tax
    
8,953
    
1,374
    
8,333
    
1,285
    
10,098
    
1,549
    
8,880
    
1,369
  
  

    
Deferred Tax
    
3,160
    
485
    
1,019
    
157
    
3,248
    
498
    
1,321
    
204
  
  

    
Profit for the year
    
33,612
    
5,157
    
31,425
    
4,846
    
36,080
    
5,537
    
29,833
    
4,600
  
  

    
Add: Other Comprehensive Income
    
(3,503)
    
(537)
    
2,192
    
338
    
(1,635)
    
(251)
    
1,827
    
282
  
  

    
Total Comprehensive Income for the year
    
30,109
    
4,620
    
33,617
    
5,184
    
34,445
    
5,286
    
31,660
    
4,882
  
  

    
Less: Total Comprehensive Income attributable to Non Controlling Interest
    

    

    
-
    
-
    
9
    
1
    
(64)
    
(10)
  
  

    
Total Comprehensive Income attributable to owners of the Company
    
30,109
    
4,620
    
33,617
    
5,184
    
34,436
    
5,285
    
31,724
    
4,892
  
  

    
Add: Balance in Profit and Loss Account (Adjusted)
    
34,506
    
5,999
    
25,679
    
4,638
    
14,467
    
2,413
    
7,851
    
1,393
  
  

    
Add: Transferred from Capital Reserve Account
    

    

    
-
    
-
    

    

    
-
    
-
  
  

    
Add: Transferred from Revaluation Reserve
    

    

    

    

    
327
    
50
    

    

  
  

    
Add: Transferred from Share in Reserve of Associates
    

    

    

    

    
10
    
2
    

    

  
  

    
Add: Transferred from Share Based Payments Reserve
    
4
    
1
    

    

    
4
    
1
    

    

  
  

    
Less: On account of Amalgamation / Divestment of Stake
    

    

    
-
    
-
    
(283)
    
(43)
    
(252)
    
(39)
  
  

    
Less: Securities Premium on Redemption of
    

    

    

    

    
(144)
    
(22)
    

    

  
  

    
Non-Cumulative Optionally Convertible Preference Shares
    

    

    

    

    

    

    

    

  
  

    
Sub-Total
    
64,619
    
10,620
    
59,296
    
9,822
    
48,817
    
7,686
    
39,323
    
6,246
  
  

    
Less: Appropriation
    

    

    

    

    

    

    

    

  
  

    
Transferred to Statutory Reserve
    

    

    
-
    
-
    
221
    
34
    
66
    
10
  
  

    
Transferred to General Reserve
    
25,000
    
3,836
    
24,790
    
3,823
    
25,000
    
3,836
    
24,790
    
3,823
  
  

    
Transferred to Capital Redemption Reserve
    

    

    
-
    
-
    
2
    
0
    
-
    
-
  
  

    
Transferred to Debenture Redemption Reserve
    
4,134
    
634
    
-
    
-
    
4,145
    
636
    
-
    
-
  
  

    
Dividend on Equity Shares^
    
3,255
    
499
    
-
    
-
    
3,255
    
499
    
-
    
-
  
  

    
Tax on Dividend^
    
661
    
101
    
-
    
-
    
661
    
101
    
-
    
-
  
  

    
Closing Balance (including Other Comprehensive
    
31,569
    
5,550
    
34,506
    
5,999
    
15,533
    
2,580
    
14,467
    
2,413
  
  

    
Income)
    

    

    

    

    

    

    

    

  


* 1 US$ = 65.175 Exchange Rate as on March 31, 2018 (1 US$ = 64.85 as on March 31,
2017) ^ Pertaining to dividend for the financial year 2016-17


Results of Operations and the State of Company’s Affairs

The Highlights of the Company’s performance (Standalone) for the year ended March
31, 2018 are as under:

Value of sales and services increased by 19.0 % to 3,15,357 crore (US$ 48.4 billion).

Exports increased by 19.2 % to 1,76,117 crore (US$ 27.0 billion).

PBDIT increased by 15.4 % to 59,961 crore (US$ 9.2 billion).

Profit Before Tax increased by 12.1 % to 45,725 crore (US$ 7.0 billion).

Cash Profit increased by 13.3 % to 46,352 crore (US$ 7.1 billion).

Net Profit increased by 7.0 % to 33,612 crore (US$ 5.2 billion).

Gross Refining Margin stood at US$ 11.6 / bbl for the year ended March 31, 2018.

Financial Performance Review and Analysis (Consolidated)

The Company achieved a consolidated turnover of 4,30,731 crore (US$ 66.1 billion) for
the year ended March 31, 2018, an increase of 30.5 %, as compared to 3,30,180 crore in the
previous year. Increase in revenue is primarily on account of higher volumes with start-up
of petrochemicals projects and uptrend in prices of products in refining and petrochemical
businesses. Turnover was also boosted by robust growth in retail business which recorded a
104.9 % surge in turnover to 69,198 crore. Brent crude oil price averaged US$ 57.5 /bbl in
FY2017-18 as compared to US$ 48.6/bbl in the previous year. Exports (including deemed
export) from India were marginally higher at 1,76,117 crore (US$ 27.0 billion) as against
1,47,755 crore in the previous year.

Dividend

The Board of Directors has recommended a dividend of 6/- per equity share of 10/- each
on the increased paid-up share capital post issue of bonus shares during the financial
year 2017-18 in the ratio of 1:1 (last year 11/- per equity share) for the financial year
ended March 31, 2018 amounting to 4,281 crore (inclusive of dividend distribution tax of
728 crore). The dividend payment is subject to approval of members at the ensuing Annual
General Meeting.

The dividend payout is in accordance with the Company’s Dividend Distribution
Policy. The Dividend Distribution Policy of the Company is annexed herewith marked as Annexure
I to this Report.

Bonus Shares

During the year under review, the Company has issued and allotted 308,03,34,238 bonus
shares to the equity shareholders in the ratio of 1:1 (i.e. one fully paid equity share of
Rs. 10/- each for one fully paid equity share).

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 the Company and its major subsidiaries consolidated with the
Company are as below:

Refining & Marketing Business

FY 2017-18 refining EBIT increased by 3.2% y-o-y to a record of Rs. 25,869 crore,
supported by strong product demand, lower freight rates, effective crude sourcing and
robust risk management. With a countrywide operational network of 1,313 fuel outlets, the
Company covers the key highways in the country. Customer count enrolled in Reliance’s
industry leading fleet program, Trans-Connect, grew by 31% during FY 2017-18. Supported by
the network presence and the growing fleet customer count, Company’s outlets
registered an outstanding Pump throughput of double the industry average during the year.

Petrochemicals Business

FY 2017-18 revenue growth was primarily due to higher volumes from new Paraxylene, ROGC
and its downstream units (PE and MEG), with the segment achieving its highest ever
production level of 30.8 MMT, up 24% y-o-y. Petrochemicals segment EBIT increased sharply
by 63.0% to its highest ever level of 21,179 crore ($ 3.2 billion). Earnings were
supported by favorable product deltas across integrated polyester chain, PP, PVC along
with the growth in volumes. EBIT margin was higher by nearly 300bps to 16.9%, reflecting
Company’s strengthened cost positions across product chains and unmatched feedstock
flexibility.

Oil and Gas (Exploration & Production) Business

FY 2017-18, revenues increased by 0.3% to `5,204 crore. This marginal change was on
account of better price realisations and ramp up of production in CBM which were partly
offset by decline in production in KG D6 and Shale Gas. Consequently, upstream operations
registered negative EBIT of `(1,536) crore.

During the year Reliance divested its holdings in the Marcellus shale JV which was
operated by Carrizo Oil & Gas. Reliance continues to focus on value maximization in
the remaining two JVs with focus on improvement in well design and execution efficiency.

The Company commenced commercial production from its Coal Bed Methane (CBM) block SP
(West) CBM 2001/1 in March 2017. More than 200 wells were put on production with
production ramp up crossing the 1 MMSCMD level during the year.

Retail Business

Reliance Retail achieved a turnover of 69,198 crore in FY 2017-18, more than doubling
from the turnover of 33,765 crore achieved last year. The business delivered an EBIT of
2,064 crore for FY 2017-18, more than doubling from 784 crore achieved last year. During
the year, Reliance Retail added 221 stores and 3,736 Jio Points.

Reliance Retail operated 7,573 retail stores in over 4,400 cities covering an area of
17.7 million sq. ft. as on March 31, 2018. Reliance Retail operated 495 petro retail
outlets as on March 31, 2018.

Digital Services

Despite competitive pressures Digital Services business recorded revenues of 23,916
crore, with year-end subscribers’ base at 186.6 million and Segment EBIT was at 3,174
crore for the year, with EBIT margin of 13.3%. This is strong financial performance within
very first year of commercial operations demonstrating strong fundamental and operating
leverage of the business.

Media and Entertainment

Network18 subsidiary viz. TV18 took operational control of and raised its stake to 51%
in entertainment JV viz. Viacom18. TV18 can drive value-addition and synergies across the
multi-platform group, comprising broadcast, digital, filmed and experiential entertainment
and media businesses.

Network18 reported revenues of 1,839 crore (+23% y-o-y, despite tepid industry
environment), and EBIT of (25) crore on a consolidated basis.

The sharp revenue escalation is led by the impact of subsidiary TV18 acquiring control
of entertainment JV Viacom18, partly offset by HomeShop18 ceasing to be a subsidiary due
to its share-swap acquisition of ShopCJ during the last quarter of the fiscal.


Credit Rating

The Company’s financial discipline and prudence is reflected in the strong credit
ratings ascribed by rating agencies as given below:


  

    
Instrument
    
Rating Agency
    
Rating
    
Outlook
    
Remarks
  
  

    
International Debt
    
S&P
    
BBB+
    
Stable
    
Two notches above India’s sovereign rating
  
  

    
International Debt
    
Moody’s
    
Baa2
    
Stable
    
At par with India’s sovereign rating
  
  

    
Long Term Debt
    
CRISIL
    
CRISIL AAA
    
Stable
    
Highest rating awarded by CRISIL
  
  

    
Long Term Debt
    
India Ratings
    
IND AAA
    
Stable
    
Highest rating awarded by India Ratings
  



Consolidated Financial Statement

In accordance with the provisions of the Companies Act, 2013 ("the Act") and
Ind AS 110 Consolidated Financial Statement 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, as per Section 129(3) of the Act, 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 is put on the
Company’s website and may be accessed at: http://www.ril.com/ Investor
Relations/Financial Reporting.aspx The financial statements of each of the subsidiaries is
put on the Company’s website and may be accessed at: http://www.ril.
com/InvestorRelations/Downloads.aspx. These documents will also be available for
inspection on all working days, during business hours, at the Registered Office of the
Company.

The Company has formulated a Policy for determining Material Subsidiaries. The Policy
may be accessed at: http://www.ril.com/DownloadFiles/IRStatutory/Material-Subsidiaries.pdf


Secretarial Standards

The Directors state that applicable Secretarial Standards, i.e. SS-1 and SS-2, relating
to ‘Meetings of the Board of Directors’ and ‘General Meetings’,
respectively, have been duly followed by the Company.


Directors’ Responsibility Statement

Your Directors state that:

a) in the preparation of the annual accounts for the year ended March 31, 2018, 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, 2018 and of the profit 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
effectively;

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


Corporate Governance

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 governance practices.
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.


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 a 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 its ordinary course of business and on an 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: http://www.ril.com/DownloadFiles/IRStatutory/Policy-on-Materiality-of-RPT.pdf

There were no materially transactions which could have potential conflict with interest
of the Company at large.

Members may refer to Note 31 to the standalone financial statement which sets out
related party disclosures pursuant to Ind AS.


Corporate Social Responsibility (CSR)

During the year under review, the Company has won the Golden Peacock Award 2017 for the
success of its Corporate Social Responsibility initiatives and in particular for the
transformative work done by Reliance Foundation (RF), the CSR arm of the Company. Under
the able leadership of its Founder and Chairperson, Smt. Nita M. Ambani, RF has touched
the lives of 20 million people across India covering more than 13,500 villages and 100
urban locations. The Company was recognized by the Awards Jury under the Chairmanship of
Justice (Dr.) Arijit Pasayat, former Judge, Supreme Court of India. Golden Peacock Award,
is instituted by the Institute of Directors (IOD), India in 1991, and are regarded as a
benchmark of Corporate Excellence worldwide.

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 beaccessedonthe Company’swebsite identification of elements of
risk and their at: http://www.ril.com/DownloadFiles/IRStatutory/CSR-Policy.pdf

The key philosophy of 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. financial control systems
by the

• Health: Affordable 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, Culture and Heritage: Protection and promotion of India’s art,
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 745 crore (around 2.12% 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
to this Report.


Risk Management

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 Strategic and
Commercial, Safety and Operations, Compliance and Control and Financial 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 are covered in Managements Discussion and Analysis section,
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 wellastestingoftheinternal 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 as intended.


Directors and Key Managerial Personnel

In accordance with the provisions of the Act and the Articles of Association of the
Company, Shri P.M.S. Prasad and Shri Nikhil. R. Meswani, Directors of the Company, retire
by rotation at the ensuing Annual General Meeting. The Board of Directors on the
recommendation of the Human Resources, Nomination and Remuneration Committee has
recommended their re-appointment.

Dr. D. V. Kapur has ceased to be a Director of the Company w.e.f. July 21, 2017. 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

The Board of Directors on recommendation of the Human Resources, Nomination and
Remuneration Committee has re-appointed Shri Mukesh D. Ambani as Managing Director of the
Company for a period of 5 (five) years with effect from April 19, 2019, subject to
approval of shareholders, as his current term of office is upto April 18, 2019.

The term of office of Shri Adil Zainulbhai, as an Independent Director, will expire on
March 31, 2019. The Board of Directors, on recommendation of the Human Resources,
Nomination and Remuneration Committee has recommended re-appointment of Shri Adil
Zainulbhai, as an Independent Director of the Company for a second term of 5 (five)
consecutive years on the expiry of his current term of office.

The shareholders of the Company at its Annual General Meeting held on July 21, 2017
have approved 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 on the Board of the Company
by passing special resolution and appointed Dr. Shumeet Banerji as an Independent Director
of the Company, for a term of 5 ve) consecutive years. (fi

The Company has received declarations from all the Independent Directors of the Company
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 employees.


Performance Evaluation

The Company has devised a Policy for performance evaluation of the Board, Committees
and other individual Directors (including Independent Directors) which include criteria
for performance evaluation of 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.

The Board carried out an annual performance evaluation of the Board, Committees,
Individual Directors and the Chairperson. The Chairman of the respective 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 Committees.

The report on performance evaluation of the Individual Directors was reviewed by the
Chairman of the Board and feedback was given to Directors.


Employees’ Stock Option Schemes

The Company’s Employees Stock Option Scheme viz. ESOS-2006 has been in place since
year 2006-07 and the Company has made grants under ESOS-2006 to the eligible employees of
the Company and its subsidiaries. The Human Resources, Nomination and Remuneration
Committee of the

Board of Directors of the Company, inter alia, administers and monitors the
Employees’ Stock Option Plan of the Company. The Company, during the year obtained
approval of the members for a new scheme viz. ESOS-2017 and pursuant to the said approval
it was decided to withdraw ESOS-2006 and cancel balance of options not granted.
Accordingly, ESOS-2006 stands cancelled. However, existing options granted and which are
in force will continue to be governed by ESOS-2006. The Company did not make any grant
under ESOS-2017 during the FY 2017-18. Other than the above, there has not been any
material change in the Employee Stock Option Schemes during the current financial year.

The Schemes are in line with the SEBI (Share Based Employee Benefits) Regulations, 2014
("SBEB Regulations"). The Company has received a certificate from the Auditors
of the Company that the Schemes are implemented in accordance with the SBEB Regulations
and the resolutions passed by the members. The certificate would be available at the
Annual General Meeting for inspection by members. The details as required to be disclosed
under the SBEB Regulations and certificate from Auditors are put on the Company’s
website and may be accessed at: http://www.ril.com/DownloadFiles/
IRStatutory/ESOS-2006-Disclosure.pdf and http://www.ril.
com/DownloadFiles/IRStatutory/ESOS-2017-Disclosure.pdf


Auditors and Auditors’ Report

Statutory Auditors

M/s. S R B C & Co. LLP, Chartered Accountants and M/s. D T S & Associates,
Chartered Accountants were appointed as Auditors of the Company, for a term of 5 (five)
consecutive years, at the Annual General Meeting held on July 21, 2017. They have
confirmed that they are not disqualified from continuing as 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.

Cost Auditors

The Board has appointed following cost auditors for conducting the audit of cost
records of products and services of the Company for various segments for the FY 2018-19:

(i) For Textiles Business - Kiran J. Mehta & Co., Cost Accountants;

(ii) For Chemicals Business - Diwanji & Co., Cost Accountants, K.G. Goyal &
Associates, Cost Accountants, V.J. Talati & Co., Cost Accountants, 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 - Diwanji & Co., Cost Accountants and Kiran J.
Mehta & 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
Auditors.

Secretarial Auditor

The Board had appointed Dr. K.R. Chandratre, Practising Company Secretary, to conduct
Secretarial Audit for the FY 2017-18. The Secretarial Audit Report for the financial year
ended March 31, 2018 is annexed herewith marked as Annexure V to this Report. The
Secretarial Audit Report does not contain any qualification, reservation, adverse remark
or disclaimer.


Disclosures

Meetings of the Board

Six meetings of the Board of Directors were held during the year. The particulars of
meetings held and attended by each Director are detailed in the Corporate Governance
Report, which forms part of this Report.

Audit Committee

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)

During the year, the Corporate Social Responsibility and Governance Committee
(CSR&G) was re-constituted by appointing Dr. Shumeet Banerji as a member of the
Committee. The CSR&G Committee comprises Shri Yogendra P. Trivedi (Chairman), Shri
Nikhil R. Meswani, Dr. Raghunath A. Mashelkar and Dr. Shumeet Banerji.

Vigil Mechanism

RIL has established a robust Vigil Mechanism and a Whistle-blower policy in accordance
with provisions of the Act and Listing Regulations. The Vigil Mechanism is supervised by
an ‘Ethics & Compliance Task Force’ comprising a member of the Board as the
Chairperson and senior executives as members.

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 :
http://www.ril.com/DownloadFiles/IRStatutory/Vigil-Mechanism-and-Whistle-Blower-Policy.pdf

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
to Note 3, 9, 2, 6, 31 and 37 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 marked as Annexure VII
to this Report.

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 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 on all working
days, during business hours, at the Registered Office of the Company. Any member
interested in obtaining such information may write to the Company Secretary and the same
will be furnished on request.


General

Your Directors state that no disclosure or reporting is required in respect of the
following matters as there were no transactions on these items during the year under
review:

Details relating to deposits covered under Chapter V of the Act.

Issue of equity shares with differential rights as to dividend, voting or otherwise.

Issue of shares (including sweat equity shares) to employees of the Company under any
scheme save and except Employees’ Stock Options Plan referred to in this Report.

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.

Neither the Managing Director nor the Whole-time Directors of the Company receive any
remuneration or commission from any of its subsidiaries.

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.

No fraud has been reported by the Auditors to the Audit Committee or the Board.


Acknowledgement

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 Board 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 27, 2018
  



ANNEXURE I

Dividend Distribution Policy

The Board of Directors (the "Board") of Reliance Industries Limited (the
"Company") at its meeting held on April 24, 2017 had adopted this Dividend
Distribution Policy (the "Policy") as required by Regulation 43A of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing
Regulations").


Objective y 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
the Board.


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 events

The Board of Directors of the Company shall consider the following external parameters
while declaring or recommending dividend to shareholders:

• Macro-economic environment-Significantchanges in macro-economic environment
materially 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 significantlaffect the regulatoryrequirements,which
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 Regulations shall prevail.


Amendments

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 the Board of Directors
  
  

    
Mukesh D. Ambani
  
  

    
Chairman and Managing Director
  
  

    
Mumbai, April 27, 2018
  



ANNEXURE II

Companies which became / ceased to be Company’s Subsidiaries, Joint Ventures or
Associate Companies as per the provisions of the Companies Act, 2013:

1. Companies / Bodies Corporate which became Subsidiaries during the financial year
2017-18:


  

    
No.
    

  
  

    
1
    
Aanant Commercial Private Limited
  
  

    
2
    
Dreketi S.A
  
  

    
3
    
Jalaja Commercials Private Limited
  
  

    
4
    
Naroda Power Private Limited
  
  

    
5
    
Reliance Content Distribution Limited
  
  

    
6
    
Reliance Digital Media Distribution Limited
  
  

    
7
    
Reliance GAS Lifestyle India Private Limited
  
  

    
8
    
Resolute Land Consortium Projects Limited
  
  

    
9
    
Santol Commercials Private Limited
  
  

    
10
    
Tangerine Agro Private Limited
  


2. Companies / Bodies Corporate which ceased to be Subsidiaries during the 


  

    
Sr. No.
    
Name of the Company
  
  

    
1
    
Aanant Commercial Private Limited
  
  

    
2
    
Aurora Algae Pty Ltd
  
  

    
3
    
Aurora Algae RGV LLC
  
  

    
4
    
Central Park Enterprises DMCC
  
  

    
5
    
Cluster Commercial Private Limited
  
  

    
6
    
Delta Corp East Africa Limited
  
  

    
7
    
Devashree Commercials Private Limited
  
  

    
8
    
Dignity Mercantile Private Limited
  
  

    
9
    
Girisha Commercials Private Limited
  
  

    
10
    
Jalaja Commercials Private Limited
  
  

    
11
    
Reliance Aerospace Technologies Limited
  
  

    
12
    
Reliance Commercial Land & Infrastructure Limited
  
  

    
13
    
Reliance Commercial Trading Private Limited
  
  

    
14
    
Reliance Eagleford Midstream LLC
  
  

    
15
    
Reliance Global Business B.V.
  
  

    
16
    
Reliance Global Commercial Limited
  
  

    
17
    
Reliance Jio AsiaInfo Innovation Centre Limited
  
  

    
18
    
Reliance Petroinvestments Limited
  
  

    
19
    
Reliance Supply Solutions Private Limited
  
  

    
20
    
Reliance Trading Limited
  
  

    
21
    
Reliance Universal Commercial Limited
  
  

    
22
    
RIL (Australia) Pty Limited
  
  

    
23
    
Wave Land Developers Limited
  


3. Companies / Bodies Corporate which have become Joint Venture or Associate during the
financial year 2017-18.


  

    
Sr. No.
    
Name of the Company
  
  

    
1
    
Balaji Telefilms Limited (Associate)
  


4. Companies / Bodies Corporate which ceased to be a Joint Venture or Associate during
the financial year 2017-18. Nil


  

    
For and on behalf of the Board of Directors
  
  

    
Mukesh D. Ambani
  
  

    
Chairman and Managing Director
  
  

    
Mumbai, April 27, 2018
  



ANNEXURE III

Annual Report on Corporate Social Responsibility (CSR) activities for the financial
year 2017-18


  

    
1.
    
A brief outline of the Company’s CSR Policy including overview of projects or
    programs proposed to be undertaken and a reference to the web-link to the CSR Policy and
    projects or programs.
    
Refer Section: Corporate Social Responsibility (CSR) in the Board’s Report
  
  

    
2
    
The Composition of the CSR Committee
    
Refer Section: Disclosures: Corporate Social Responsibility and Governance Committee
    in the Board’s Report
  
  

    
3.
    
Average netprofit years ofthe Companyforlastthreefinancial
    
35,154.19 crore
  
  

    
4.
    
Prescribed CSR expenditure (two percent of the amount mentioned in item 3 above)
    
703.08 crore
  
  

    
5.
    
Details of CSR spent during the financial year:
    

  
  

    

    
Total amount to be spent for the financial year
    
703.08 crore
  
  

    

    
Total Amount spent during the year
    
745.04 crore
  
  

    

    
Amount unspent, if any
    
Not applicable
  
  

    

    
Manner in which the amount spent during the financial year
    
Details given below
  



Details of amount spent on CSR activities during the Financial Year 2017-18


  

    
Sr. No 
    
CSR project or Activity Identified 
    
Sector in which the project is covered (Clause number of Schedule VII to the
    Companies Act, 2013, as amended)
    
Project or Programme 1. Local Area or Other 2. Specify the State and
    district where projects or programme was undertaken 
    
Amount Outlay (Budget) Project or Program wise (` in crore)
    
Amount spent on the Projects or Programs: Sub Heads (1) Direct
    Expenditure on Projects or Programme (2) Overheads (` in crore)
    
Cumulative Expenditure up to the reporting period (` in crore)
    
Amount Spent (Direct or through Implementing Agency)
  
  

    
A
    
B
    
C
    
D
    
E
    
F
    
G
    
H
  
  

    
Rural Transformation
    

    

    

    

    

    

  
  

    
1
    
RF Bharat India Jodo Enhancing Rural Livelihoods
    
Cl (i) Eradicating hunger, poverty and malnutrition;Cl (iv) ensuring environmental
    sustainability;Cl (x) Rural Development Projects
    
PAN INDIA
    
62.10
    
37.50
    
264.64
    
Implementing Agency - Reliance Foundation*
  
  

    
2
    
Information Services - Enabling access to need based locale- specific content in
    agriculture, marine fisheries, public health, disaster response and other areas by
    leveraging technology
    
Cl (i) Eradicating hunger, poverty and malnutrition;Cl (iv) ensuring environmental
    sustainability
    
PAN INDIA
    
22.80
    
16.20
    
62.92
    
Implementing Agency - Reliance Foundation
  
  

    
3
    
Community Development - Rural Development Projects
    
Cl (x) Rural Development Projects
    
As per Note 1
    
10.00
    
9.60
    
21.43
    
Implementing Agency - Reliance Foundation
  
  

    
4
    
Partnership with Non- Government Organisations
    
Cl (i) Eradicating hunger, poverty and malnutrition;Cl (iv) ensuring environmental
    sustainability;Cl (x) Rural Development Projects
    
PAN INDIA
    
35.00
    
31.40
    
45.67
    
Implementing Agency - Reliance Foundation
  
  

    
5
    
CSR Initiatives at manufacturing locations
    
Cl (iv) ensuring environmental sustainability; Cl (x) Rural Development Projects
    
As per Note 2
    
74.00
    
86.11
    
144.60
    
Direct/ Implementing Agency - Reliance Foundation
  
  

    
Health
    

    

    

    

    

    

    

    

  
  

    
6
    
Health Outreach Programme - Static, Mobile Medical Units and camps for primary and
    preventive healthcare including diagnostics
    
Cl. (i) Promoting health care including preventive health care
    
Maharashtra - Mumbai, Thane
    
9.00
    
4.10
    
20.23
    
Implementing Agency - Reliance Foundation
  
  

    
7
    
Drishti Corneal transplant and other activities for visually impaired
    
Cl (i) Promoting health care including preventive health care
    
PAN INDIA
    
3.00
    
2.70
    
7.05
    
Implementing Agency - Reliance Foundation
  
  

    
8
    
To develop innovative technology that will help train medical students and clinicians
    for better diagnosis and improved healthcare
    
Cl (i) Promoting health care including preventive health care
    
Maharashtra - Mumbai
    
1.00
    
0.11
    
51.61
    
Implementing Agency - Reliance Foundation
  
  

    
9
    
Sir HN Reliance Foundation Hospital and Research Centre
    
Cl (i) Promoting health care including preventive health care
    
Maharashtra - Mumbai
    
163.00
    
111.10
    
1,141.48
    
Implementing Agency - Reliance Foundation
  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    
10
    
Health Programme - Mother & Child Health
    
Cl (i) Promoting health care including preventive health care
    
As per Note 3
    
1.00
    
1.00
    
1.95
    
Implementing Agency - Reliance Foundation
  
  

    
11
    
Lodhivali Hospital & ART Clinic
    
Cl (i) Promoting health care including preventive health care
    
Maharashtra - Raigad
    
4.00
    
4.14
    
9.68
    
Implementing Agency - Reliance Foundation
  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    
12
    
Partnership with Non- Government Organisations
    
Cl (i) Promoting health care including preventive health care
    
As per Note 4
    
24.00
    
11.05
    
22.67
    
Implementing Agency - Reliance Foundation
  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    
13
    
Community Development
    
Cl (i) Promoting health care including preventive health care
    
As per Note 1
    
2.00
    
1.52
    
3.08
    
Implementing Agency - Reliance Foundation
  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    
14
    
CSR Initiatives at manufacturing locations
    
Cl. (i) Promoting health care including preventive health care
    
As per Note 2
    
8.00
    
12.17
    
62.02
    
Direct
  
  

    
Education
    

    

    

    

    

    

    

  
  

    
15
    
Vocational Skilling Initiative
    
Cl (ii) Promoting Education
    
As per Note 5
    
7.50
    
2.50
    
9.03
    
Implementing Agency - Reliance Foundation
  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    
16
    
Reconstruction of School at Uttarakhand
    
Cl (ii) Promoting Education
    
Uttarakhand - Rudraprayag, Uttarkashi
    
3.22
    
3.14
    
13.58
    
Implementing Agency - Reliance Foundation
  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    
17
    
Dhirubhai Ambani Scholarship Programme
    
Cl (ii) Promoting Education
    
Gujarat - Junagadh
    
0.49
    
0.02
    
8.65
    
Implementing Agency - Reliance Foundation
  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    

    

    

    

    

    

    

    

  
  

    
18
    
Reliance University
    
Cl (ii) Promoting Education
    
Maharashtra - Raigad
    
139.00
    
303.57
    
589.69
    
Implementing Agency - Reliance Foundation / Reliance Foundation Institution of
    Education and Research**
  
  

    
19
    
Digital Education Initiatives
    
Cl (ii) Promoting Education
    
As per Note 6
    
-
    
-
    
3.70
    
Implementing Agency - Reliance Foundation
  
  

    
20
    
Partnership with Non- Government Organisations
    
Cl (ii) Promoting Education
    
As per Note 7
    
76.00
    
45.99
    
116.65
    
Implementing Agency - Reliance Foundation
  
  

    
21
    
CSR Initiatives at manufacturing locations
    
Cl (ii) Promoting Education
    
As per Note 2
    
15.00
    
15.72
    
96.49
    
Direct
  
  

    

    

    

    

    

    

    

    

  
  

    
Sports for Development
    

    

    

    

    

    

    

  
  

    
22
    
Promoting Grassroot Sports
    
Cl (vii) Training to promote Rural Sports, Nationally recognized sports and Olympic
    sports
    
PAN INDIA
    
64.00
    
37.61
    
59.46
    
Implementing Agency - Reliance Foundation Youth Sports ***
  
  

    
23
    
Reliance Foundation Jr. NBA Programme
    
Cl (vii) Training to promote Rural Sports, Nationally recognized sports and Olympic
    sports
    
PAN INDIA
    
4.00
    
2.95
    
13.44
    
Implementing Agency - Reliance Foundation
  
  

    
24
    
RF Young Champs
    
Cl (vii) Training to promote Rural Sports, Nationally recognized sports and Olympic
    sports
    
Maharashtra - Thane
    
6.00
    
2.48
    
9.65
    
Implementing Agency - Reliance Foundation
  
  

    
25
    
Partnership with Non- Government Organisations
    
Cl (vii) Training to promote Rural Sports, Nationally recognized sports and Olympic
    sports
    
Maharashtra - Thane
    
0.10
    
0.07
    
0.07
    
Implementing Agency - Reliance Foundation
  
  

    
Disaster Response
    

    

    

    

    

    

    

  
  

    
26
    
Disaster Relief
    
Cl (x) Rural Development Projects
    
As per Note 8
    
11.79
    
1.09
    
17.72
    
Implementing Agency - Reliance Foundation
  
  

    
Urban Renewal
    

    

    

    

    

    

    

  
  

    
27
    
Environment - RF - Urban Renewal Initiatives
    
Cl (iv) Ensuring environmental sustainability, ecological balance
    
Maharashtra - Mumbai
    
2.00
    
0.34
    
4.20
    
Implementing Agency - Reliance Foundation
  
  

    
Arts, culture and heritage
    

    

    

    

    

    

    

  
  

    
28
    
Promoting Traditional Arts and Culture
    
Cl (v) Protection of national heritage, art & culture
    
Maharashtra - Mumbai
    
1.00
    
0.85
    
2.14
    
Implementing Agency - Reliance Foundation
  
  

    
29
    
CSR Initiatives at manufacturing locations
    
Cl (v) Protection of national heritage, art & culture
    
As per Note 2
    
1.00
    
0.01
    
12.86
    
Direct
  
  

    

    
Grand Total
    

    

    
750.00
    
745.04
    
2,816.36
    

  


 


  

    
Note 1:
    
Assam - Golaghat; Gujarat - Bharuch, Jamnagar, Navsari, Surat; UT of
    DNH - Silvassa, Haryana - Rewari; Karnataka - Dakshina Kannada;
  
  

    

    
Madhya Pradesh - Bhopal, Annuppur, Shahdol; Maharashtra - Mumbai,
    Palghar, Raigad, Thane; Tamil Nadu - Thiruvallur;
  
  

    

    
Uttar Pradesh - Kanpur Dehat; West Bengal - East Midnapur
  
  

    
Note 2:
    
Andhra Pradesh - East Godavari; Gujarat - Bharuch, Jamnagar, Surat,
    Vadodara, Ahmedabad ; Madhya Pradesh - Shahdol ; Maharashtra - Nagpur,
    Raigad;
  
  

    

    
Uttar Pradesh - Allahabad, Barabanki; Punjab - Hoshiarpur
  
  

    
Note 3:
    
Maharashtra - Mumbai, Yavatmal, Gangakhed; Gujarat - Jasdan, Bharuch; Madhya
    Pradesh - Seoni, Chhindwara; Rajasthan - Sawai Madhopur, Banswara
  
  

    
Note 4:
    
Maharashtra - Ahmednagar, Mumbai, Nashik, Thane; Rajasthan - Udaipur; Telangana
    - Warangal; Uttarakhand - Dehradun
  
  

    
Note 5:
    
Andhra Pradesh - East Godavari; Maharashtra - Mumbai; West Bengal -
    Kolkata
  
  

    
Note 6:
    
Andhra Pradesh - Anantpur, Chitoor, Guntur, Kadapa, Krishna, Kurnool,
    Prakasham, Srikakaulam, Vishakapatnam, East Godavari, Nellore, Warangal, Vizianagar;
  
  

    

    
Gujarat - Junagadh, Mehsana, Vadodara, Ahmedabad; Madhya Pradesh -
    Shahdol; Telangana - Khammam, Ranga Reddy
  
  

    
Note 7:
    
Chhattisgarh - Raipur; Delhi - Delhi, New Delhi; Gujarat -
    Ahmedabad; Maharashtra - Mumbai
  
  

    
Note 8: 
    
Jammu & Kashmir - Jammu; Uttarakhand - Rudraprayag
  


 


  

    
*
    
Reliance Foundation (RF) is a company within the meaning of Section 8 of the Companies
    Act, 2013 and has a comprehensive approach towards development with an overall aim to
    create and support meaningful and innovative activities that address some of India’s
    most pressing developmental challenges, with the aim of enabling lives, living and
    livelihood for a stronger and inclusive India.
  
  

    
**
    
Reliance Foundation Institution of Education and Research (RFIER) is a company within
    meaning of Section 8 of the Companies Act, 2013 to promote, encourage, support and assist
    educational, research and medical activities.
  
  

    
***
    
Reliance Foundation Youth Sports (RFYS) is a company within meaning of Section 8 of
    the Companies Act, 2013 and has a comprehensive approach towards development of grassroot
    sports.
  
  

    
****
    
The above mentioned cumulative total includes only the above mentioned projects. There
    were additional projects which are not included in the total. Some of CSR activities have
    been carried with support of several other Non-Government Organisation or charitable
    institutions.
  



Responsibility Statement

The Responsibility Statement of the Corporate Social Responsibility and Governance
(CSR&G) Committee of the Board of Directors of the Company, is reproduced below:

‘The implementation and monitoring of Corporate Social Responsibility (CSR)
Policy, is in compliance with CSR objectives and policy of the Company.’


  

    
Yogendra P. Trivedi
    
Nikhil R. Meswani
  
  

    
Chairman, CSR&G Committee
    
Executive Director
  
  

    

    
Mumbai, April 27, 2018
  



ANNEXURE IV A

Policy for selection of Directors and determining Directors’ independence

1. Introduction:

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
Regulations").

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
Regulations.

4. Policy:


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 energy in carrying out their duties and
responsibilities effectively.

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 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 percent or more of the total voting power
of the company; or

(iv) is a Chief Executive or director, by whatever name called, of any nonprofit
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 Act, 2013.


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 excluded.


  

    
For and on behalf of the Board of Directors
  
  

    
Mukesh D. Ambani
  
  

    
Chairman and Managing Director
  
  

    
Mumbai, April 27, 2018
  



ANNEXURE IV B

Remuneration Policy for Directors, Key Managerial Personnel and other employees

1. Introduction:

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
performance benchmarks.

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. Policy:


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) BasicPay (ii) Perquisites and
Allowances (iii)StockOptions

(iv) Commission (Applicable in case of Executive Directors) (v) Retiralbenef its (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
Objectives.


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 the Board of Directors


Mukesh D. Ambani

Chairman and Managing Director

Mumbai, April 27, 2018


ANNEXURE V

Secretarial Audit Report

For the Financial Year ended March 31, 2018

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To 

The Members

Reliance Industries Limited 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai
400 021

I have conducted the secretarial audit of the compliance of applicable statutory
provisions and the adherence to good corporate practices by Reliance Industries Limited
(hereinafter called ‘the Company’). Secretarial Audit was conducted in a manner
that provided me a reasonable basis for evaluating the corporate conducts / statutory
compliances and expressing my opinion thereon.

Based on my verification of the Company’s books, papers, minute books, forms and
returns filed and other records maintained by the Company and also the information
provided by the Company, its officers, agents and authorised representatives during the
conduct of secretarial audit, I hereby report that in my opinion, the Company has, during
the audit period covering the financial year ended on March 31, 2018 (‘Audit
Period’) complied with the statutory provisions listed hereunder and also that the
Company has proper Board-processes and compliance-mechanism in place to the extent, in the
manner and subject to the reporting made hereinafter:

I have examined the books, papers, minute books, forms and returns filed and other
records maintained by the Company for the financial year ended on 31 March 2018 according
to the provisions of:

(i) The Companies Act, 2013; the Companies Act, 1956 (the Act) and the rules made
thereunder;

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules
made thereunder;

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made
thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and
External Commercial Borrowings;

(v) The following Regulations and Guidelines prescribed under the Securities and
Exchange Board of India Act, 1992 (‘SEBI Act’): -

(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011;

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading)
Regulations, 2015;

(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009

(d) The Securities and Exchange Board of India (Share Based Employee Benefits)
Regulations, 2014;

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities)
Regulations, 2008;

(f) The Securities and Exchange Board of India (Registrars to an Issue and Share
Transfer Agents) Regulations, 1993 regarding the Act and dealing with client;

(g) The Securities and Exchange Board of India (Delisting of Equity Shares)
Regulations, 2009 (Not applicable to the Company during the Audit Period);

(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations,
1998 (Not applicable to the Company during the Audit Period); and

(i) The Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

I have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards issued by The Institute of Company Secretaries of India; and

(ii) The Listing Agreements entered into by the Company with the Stock Exchanges.

During the period under review, the Company has complied with the provisions of the
Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

I further report that, having regard to the compliance system prevailing in the
Company and on examination of the relevant documents and records in pursuance thereof on
test-check basis, the Company has complied with the following laws applicable specifically
to the Company:

(a) Merchant Shipping Act, 1958 and Rules made thereunder;

(b) Petroleum Act, 1934 and Rules made thereunder

(c) Oil Field (Regulation and Development) Act, 1948 and Rules made thereunder;

(d) The Mines Act, 1952 and Rules made thereunder.

(e) The Petroleum and Natural Gas Regulatory Board Act, 2006 and the Rules made
thereunder.

I further report that

The Board of Directors of the Company is duly constituted with proper balance of
Executive Directors, Non-Executive Directors and Independent Directors. The changes in the
composition of the Board of Directors that took place during the period under review were
carried out in compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings. Except where
consent of the directors was received for scheduling meeting at a shorter notice, agenda
and detailed notes on agenda were sent at least seven days in advance. A system exists for
seeking and obtaining further information and clarifications on the agenda items before
the meeting and for meaningful participation at the meeting. 

All decisions at Board Meetings and Committee Meetings are carried out unanimously as
recorded in the minutes of the meetings of the Board of Directors or Committees of the
Board, as the case may be.

I further report that there are adequate systems and processes in the Company
commensurate with the size and its operations to monitor and ensure compliance with
applicable laws, rules, regulations and guidelines.

I further report that during the audit period the Company has

• Issued and allotted Unsecured, Listed Redeemable Non-convertible Debentures on
Private Placement, aggregating Rs. 20,000 Crore in six tranches as per the terms of issue
of respective tranche.

• Redeemed Non-convertible Debentures aggregating Rs. 133 Crore as per the terms
of issue.

• Increased its Authorized Share Capital from Rs. 6000,00,00,000/- (Rupees Six
Thousand Crore only) divided into 500,00,00,000 (Five Hundred Crore) equity shares of Rs.
10/- (Rupees Ten only) each and 100,00,00,000 (One Hundred Crore) preference shares of Rs.
10/- (Rupees Ten only) each to Rs. 15000,00,00,000/- (Rupees Fifteen Thousand Crore only)
divided into 1400,00,00,000 (Fourteen Hundred Crore) equity shares of Rs. 10/ (Rupees Ten
only) each and 100,00,00,000 (One Hundred Crore) preference shares of Rs. 10/ (Rupees Ten
only) each.

• Issued and allotted 308,03,34,238 fully paid-up equity shares of Rs. 10/-
(Rupees Ten only) each by way of Bonus issue in the proportion of 1 (One) fully paid-up
equity share of Rs. 10/- (Rupees Ten only) each for every 1 (One) fully paid-up equity
share of Rs. 10/- (Rupees Ten only) each held as on Record Date i.e. September 9, 2017,
fixed for this purpose.

• Approved ‘Reliance Industries Limited Employees’ Stock Option Scheme
2017’ ("ESOS 2017") for employees of the Company.

• Approved ‘Reliance Industries Limited Employees’ Stock Option Scheme
2017’ ("ESOS 2017") for employees of the subsidiary companies of the
Company


  

    
Dr. K. R. Chandratre
  
  

    
FCS No. 1370, C P No: 5144
  
  

    
Place: Pune
  
  

    
Date: April 27, 2018
  



ANNEXURE VI

Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings
and Outgo required under the Companies (Accounts) Rules, 2014

A. Conservation of Energy


(a) Steps taken to conserve energy

In light of the global challenges concerning energy security, Reliance Industries
Limited (RIL) considers energy management as one of the key components of its responsible
business strategy.

Major energy conservation initiatives taken during the FY 2017-18:


Refining and Marketing

Jamnagar Manufacturing Division (DTA)

Heat recovery from LCGO (Light cycle gas oil) pump-around stream at stripper re-boiler
of coker gas conditioning section to avoid medium pressure steam consumption;

Recover low level heat from overhead fin fans of crude distillation unit’s
fractionator column and utilise the same to preheat raw crude feed resulting in reduced
steam consumption;

Heat recovery from deheptaniser (Train 1) column overhead stream in DTA-Aromatics to
increase the temperature of feed to the xylene column in Isomar unit. This resulted in
reduction of fuel consumption in re-boiler of xylene column and additional generation of
medium pressure steam from column overhead circuit.

Installed an in-house developed control system for steam ejectors (from first
principles) to reduce Medium Pressure steam consumption in Crude Distillation Units.


Jamnagar Manufacturing Division (SEZ)

In Alkylation unit, use low pressure steam to heat the feed to de-butaniser column and
thereby reduce medium pressure steam consumption in its reboiler.


Petrochemicals

Hazira Manufacturing Division

Re-define the speed control strategy of the induction fans of cracking furnaces to
optimise quantity of combustion air and thereby also optimise consumption of fuel gas
motor power;

Optimisation of reflux in debutaniser, depentaniser and benzene columns to suit the
loading of the plant resulting in reduced steam consumption in the column re-boilers;

Improved heat recovery from flue gases in Cracker furnace’s convection coils by
water washing;

Installation of a parallel steam header for evacuating increased low pressure steam
generated from reactor exotherm in PTA Plant and reducing pressure drop in the pipelines

New pressure control system in benzene tower resulting in higher heat recovery to
Naphtha stream and thereby reduced fuel fired in cracker furnace;

Reduction in consumption of high pressure steam by replacing thermodynamic steam traps
with inverted bucket steam traps in extrusion section of Polypropylene Plant;


Vadodara Manufacturing Division

Improved heat recovery in heat exchanger network through modifications in 1 st
stage hydrogenation in Pyrolysis Gasoline Hydrogenation Unit;

Reduced consumption of high pressure steam by preheating feed to Clay Tower using lean
sulfolane solvent from Ethylene Di-Chloride side reboiler outlet;

Installation of flash vessel to generate steam from reactor exotherm in LDPE Plant

Reduced steam consumption in cycle gas heater by preheating feed gasses with hot wash
water in EOEG Plant;

Heat recovery for pre-heating of boot water and finishing of recycled water using
stripper overhead vapours in PBR Plant.


Dahej Manufacturing Division

Replacing process off gas consumption with excess nitrogen available and generating
additional power in off gas expander in PTA Plant.

Optimising pressure of intermediate pressure steam to increase flash steam generation
and reduce net steam consumption in PTA Plant.


Nagothane Manufacturing Division

Achieved increase in cracked gas compressor turbine efficiency by refurbishment of
components and modification of internal design;

Refurbished ethylene refrigeration compressor turbine internals and improving operating
efficiency;

Refractory replacement and improving the heat recovery performance, resulted in
increased efficiency of gas cracker furnace;


Patalganga Manufacturing Division

Achieved increased heat recovery in combined feed exchanger of platformer through
chemical cleaning


Other initiatives taken at various manufacturing divisions

At Barabanki, Naroda, Silvassa and Hoshiarpur manufacturing division, old pumps were
replaced with energy efficient ones. Conventional tube lights were replaced with LED tube
lights.

RIL has been gearing up to contribute to the major clean energy initiatives of the Govt
of India, namely "Renewable Purchase Obligation (RPO)’ and ‘Perform,
Achieve & Trade (PAT)’.

On March 28, 2018, the cracker based manufacturing units of RIL, namely at Hazira,
Dahej, Vadodara and

Nagothane have each been notified as ‘Designated Consumer’ for PAT Cycle III
(performance years 2017-18 to 2019-20).

Majority of RIL’s electrical power requirement is met through Cogeneration
process, which as per Electricity Act 2003, needs to be promoted along with Renewable
sources.


Major Subsidiaries (Retail and Jio) and major office locations

Installed LEDs that resulted in energy savings of 1,379 Gcal/hour

Installed strip curtain that resulted in energy savings of 35 Gcal/hour

Increased solar rooftop capacity that resulted in total energy savings of 27 Gcal/hour

Installed motion sensors that resulted in energy savings of 35 Gcal/hour

Improved HVAC and switch sensor systems that resulted in total energy savings of 329
Gcal/hour


  

    
(b)
    
The capital investment on energy conservation equipment
    

    

    

  
  

    
Sr. No
    
Manufacturing Division
    
Capital investments on energy efficient equipment’s
    
Energy savings (Gcal/hr)
    
Financial saving
  
  

    

    

    
(` in crore)
    

    
(` in crore per Annum)
  
  

    
(I)
    
Refining & Marketing
    

    

    

  
  

    
1
    
Jamnagar manufacturing division (DTA)
    
53.72
    
40.56
    
67.16
  
  

    
2
    
Jamnagar manufacturing division (SEZ)
    
6.63
    
5.40
    
9.03
  
  

    
(II)
    
Petrochemicals
    

    

    

  
  

    
3
    
Hazira manufacturing division
    
3.46
    
25.92
    
31.17
  
  

    
4
    
Vadodara manufacturing division
    
13.31
    
7.28
    
15.29
  
  

    
5
    
Dahej manufacturing division
    
0.09
    
8.22
    
7.04
  
  

    
6
    
Nagothane manufacturing division
    
3.00
    
11.85
    
18.75
  
  

    
7
    
Patalganga manufacturing division
    
1.40
    
0.07
    
0.98
  
  

    
8
    
Other manufacturing divisions
    
1.03
    
0.23
    
0.99
  


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 business 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 and Marketing

Light coker naphtha processing in SEZ fluidised catalytic converter (FCC) to enable
higher propylene and ethylene production

DTA coker feed window widening with respect to metals and asphaltenes by using
clarified slurry oil (CSO) with feed

Low cost green process development for valuable metal extraction from gasification slag
Development of process for waste plastic conversion to oil

Value creation from refinery waste by-product : Using sodium free di-sulphide oils
(DSO) to replace dimethyl disulphide (DMDS) in gas and naphtha cracker and hydrotreater

Straight run fuel oil (SRFO) processing in coker unit to improve profitability

• Green process and catalyst for direct synthesis and 

of dimethyl carbonate (DMC) from CO2

methanol Process and catalyst to produce CO from CO2

Optimized coker antifoulant for increasing throughput and reliability In-house
developed flasher for removal of H2S

from brine at low capex recovery using Process development for CO2

novel adsorbent concept

Development of high active FCC catalyst

Proprietary accelerated deactivation protocol used to select the best vacuum gas oil
hydrotreater (VGOHT) catalyst

Catalyst trials in FCC for continuous yield improvement/profitability

Catalytic gasification studies in outside lab proving the concept in continuous bench
scale unit

Separation of active catalyst from FCC ecat

Process for direct conversion of syngas to olefins to ethanol Electro-reduction of CO2
and syn gas to value Differentoptionsfor CO 2 products

Fast characterisation of crude using near-infrared (NIR) to provide assay update
support.

In-house corrosion model developed to estimate true corrosivity of crude to optimise
crude purchases.

In-house platformer model developed and is being used to maximise value of C5-C12 pool.

Development of in-house RIL model for VGOHT.

Corrected naphtha composition in crude assays to improve accuracy of linear programming
(LP) model

Online corrosion monitoring dashboard developed with CFD based shear computations to
monitor 44 locations in heavy vacuum gas oil loop (HVGO) loop.

Web-portal developed to visualize the corrosive / passive molecules in crudes or blends
and study their impact on corrosion.

Fluxant recipe optimisation for gasifier operations


Petrochemicals:

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 fiber and film for ballistic armours

Purification 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, isoprene

Low energy catalytic process for n-alkane to aromatics

Value addition of carbon dioxide and syngas to chemicals

Eco-smart Polyvinyl Chloride (PVC) development for specialty applications

New ionomeric material development based on butyl rubber, styrene butadiene rubber,
polybutadiene rubber for pharmaceutical and automobile applications

Bio-compostable polymers development for packaging applications to reduce plastic waste
generation and adverse environmental effects

Development of engineering thermoplastics and biodegradable polymers based on
sustainable resources like CO2

Development of engineering thermoplastics e.g., polyphenylene sulfide for automobile,
industrial and aerospace applications

Sulphur based interpenetrating network emissions polymers with lower H2S
& SO2 development for various applications in construction industry

Novel polyolefins product development ranging from medium to high molecular weight for
high strength niche applications

Unique polyolefin product development for 3D printing

Hydrophilic polypropylene development for construction and packaging applications

Novel styrene butadiene rubber development for automobile segment with higher fuel
efficient and longer durability with lower carbon emission

Impact copolymer (ICP) and homo grade polypropylene development through Reliance
proprietary advanced catalyst system for better operational reliability and higher product
performance 

High melt flow polypropylene grades for automobile industry by next gen Reliance
proprietary catalyst system

Gas phase polyethylene process and products development through Ziegler-Natta (ZN)
catalyst

Metallocene polyethylene products and process development for packaging applications

High green strength butyl rubber product development for automobile segment 

Poly isobutylene development through novel catalytic route for higher yield with
superior microstructure

Self-adhesive materials development for health sector

Development of linen like polyester for fancy effect in fabric

Development of wipe free spinneret

Reduced plate thickness spinnerets for productivity enhancement

Non-circular cross section filaments for moisture management

Development of Recro-therm fibre for low weight and warmth in suiting, shirting and
bottom wears

Development of speciality polyester fibre for concrete application

Development of specialty polyester fibre for soil stabilisation

Development of fancy yarn from mix profiled capillaries fibre
Developmentofmoisturemanagement through topical treatment and capillary profile
modification

Development of durable antibacterial fibre through topical treatment route

Development and launch of high quality performance flame retardant polyester


Biofuels and Bio-Chemicals

Development of ‘Green Bio crude’ and byproducts from algae using sea water,
sunlight and low cost nutrients

Development of high yielding biofuel hybrid crops

Development of high yielding, waste land based non-edible crops for large scale
cultivation for production of biofuels/chemicals

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

Popularizing the cultivation of bio-fuel crops by growers by conducting method and
varietal demonstrations

Development of catalytic hydrothermal liquefaction technology for converting wet waste
to wealth

Development of catalyst for upgrading crude biofuel to reduce acidity (Total Acidity
Number) and enhancing the oil stability

Developed capabilities to design novel metabolic pathways for biochemicals from syngas,
demonstrated production of chemical in syngas utilizing bacteria


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
coal-bed methane

One step process for production of carbon nanotubes (CNT) for non-woven mats (NWM),
composites and fibre

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


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 2017-18 is approximately Rs. 486 crore.

Apart from the above monetary savings,there are other benefits from R&D i.e.

1. Transition from smart buyer of technology to a flagship developer of technology

2. Future ready for next generation businesses and mitigating disruption in existing
business.

3. Sustaining competitive advantage 4. Generating new intellectual properties 5.
Product stewardship


3. Information regarding imported technology (imported during last three years)


  

    
Details of technology imported
    
Technology imported from
    
Year of import
    
Status implementation / absorption
  
  

    
Liquid Phase Isomerization
    
Exxon Mobil
    
2017-18
    
Plant under construction
  
  

    
AMT-ADP process for azeotropic distillation
    
AMT, USA
    
2015-16
    
Design and construction under progress
  
  

    
Halogenated Isobutylene Isoprene Rubber (HIIR), JV with Sibur
    
Yarsintez, Russia
    
2015-16
    
Detail engineering under progress
  
  

    
New generation FDY spinning machines
    
TMT, Japan
    
2015-16
    
Plant commissioned
  
  

    
SSP and IDY spinning
    
Dalian, China and TMT, Japan
    
2015-16
    
Plant commissioned
  


4. Expenditure incurred on Research and Development


  

    
Sr. No
    
Particulars
    
(` in crore)
  
  

    
a)
    
Capital
    
1,026
  
  

    
b)
    
Revenue
    
798
  
  

    

    
Total
    
1,824
  


(II) Total Foreign exchange Earned and Used


  

    
Particulars
    
in crore
  
  

    
Foreign Exchange earned in terms of Actual Inflows
    
1,69,763
  
  

    
Foreign Exchange outgo in terms of Actual Outflows
    
2,21,977
  


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
1,69,325 crore (US$ 26.0 billion).

Note: Actual inflows does not include total savings in Foreign Exchange through
products manufactured by the Company and deemed exports amounting to 73,736 crore (US$
11.3 billion).


  

    
For and on behalf of the Board of Directors
  
  

    
Mukesh D. Ambani
  
  

    
Chairman and Managing Director
  
  

    
Mumbai, April 27, 2018