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Highlights y y y y y y Turnover : PBDIT : Cash Profit : Net Profit : Net Profit 10 years CAGR : Total Assets : Rs.

2,58,651 Crore ($ Rs. 41,178 Crore ($ Rs. 34,530 Crore ($ Rs. 20,286 Crore ($ 23% Rs. 2,84,719 Crore ($ 63,846 million) 58,000 9,324 7,743 4,549 million) million) million) million)

Significant contribution to India's economic growth y y y y y 13.4 % of India s total exports 6.9 % of the Government of India s indirect tax revenues 4.8 % of the total market capitalisation in India Weightage of 11.9 % in the BSE Sensex Weightage of 10.1 % in the S&P CNX Nifty Index

Growing importance across the globe y y y y Largest refining capacity at any single location Largest producer of Polyester Fibre and Yarn 5th largest producer of Paraxylene (PX) and Polypropylene (PP) 8th Largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG)

Credit Ratings Rating Agency CRISIL Fitch CRISIL CRISIL Moody's S&P Fitch Scheme of Demerger The year 2005-06 was a landmark year in the history of RIL. It marked a new strategic decision to unlock value for its shareholders by reorganizing RIL s business through a process of demerger. In this process, RIL s investments in power generation and distribution, financial services and telecommunication services were demerged in to 4 separate entities. RIL s shareholders received shares in the new entities in the same proportion of their equity holdings in RIL. The successful implementation of the largest demerger process in Indian corporate history has demonstrated RIL s ability to seed new businesses, gain leadership in each of these businesses which are large enough to be independent and thereby create value for RIL s shareholders. Investors' Handbook Presently, the Company has around 3.5 million folios of shareholders holding Equity Shares in the Company. Instrument Long Term Debt Long Term Debt Short Term Debt Working Capital Debt International Debt International Debt International Debt Rating AAA Ind AAA P1+ AAA Baa2 BBB BBB -

The Company s Equity Shares are under compulsory trading in demat form only. Over 96% of the Company s Equity Shares are held in demat form. The Company s Equity Shares are freely transferable except as may be required statutorily. The Company s Equity Shares are listed on the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE). The Global Depository Receipts (GDRs) issued by the Company are listed on Luxembourg Stock Exchange. All share related matters viz., transfer, transmission, transposition, nomination, dividend, change of name / address / signature, registration of mandate / Power of Attorney, replacement / split / consolidation of share certificate / demat / remat of shares, issue of duplicate certificates etc. are being handled by the Company s Registrars and Transfer Agents (R&TA). M/s. Karvy Computershare Private Limited (Karvy). Karvy, an ISO 9002 Certified Registrar and Transfer Agent, the largest Registrar in the India, having a vast number of Investor Service Centres across the country, discharges investor service functions effectively and expeditiously. The Company has an established mechanism for investor service. Karvy and the Compliance Officer appointed by the Company for this purpose, being the important functional nodes. The Company has appointed a firm of Chartered Accountants as Internal Security Auditors to concurrently audit the transactions and communication with investors, regulatory and other concerned authorities. The Company has prescribed service standards for various investor related activities being handled by Karvy. Any deviation therefrom is examined by the Internal Security Auditors who also advise the corrective actions thereon and inform the Company on the matters on a monthly basis. The Board of Directors of the Company has constituted a Shareholders / Investors Grievance Committee (the Committee) which, inter alia, approves issue of duplicate certificates and oversees and reviews all matters connected with securities transfers and other processes. The Committee also looks into redressal of shareholders complaints related to transfer of shares, non-receipt of balance sheet, non-receipt of declared dividend etc. The Committee oversees performance of the R&TA and recommends measures for overall improvement in the quality of investor services. The summary statement of investor related transactions and details are also considered by the Board of Directors of the Company. Reliance Group

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 58 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail, infotel and special economic zones. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. Major Group Companies are Reliance Industries Limited, including its subsidiaries and Reliance Industrial Infrastructure Limited.

"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it."

Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002 Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'. The Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals.

Growth

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Governance

Reliance is in the forefront of implementation of Corporate Governance best practices Corporate Governance at Reliance is based on the following main principles: y Constitution of a Board of Directors of appropriate composition, size, varied expertise and commitment to discharge its responsibilities and duties. Ensuring timely flow of information to the Board and its Committees to enable them to discharge their functions effectively. Independent verification and safeguarding integrity of the Company s financial reporting. A sound system of risk management and internal control. Timely and balanced disclosure of all material information concerning the Company to all stakeholders. Transparency and accountability. Compliance with all the applicable rules and regulations. Fair and equitable treatment of all its stakeholders including employees, customers, shareholders and investors.

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For those who study innovative organizations Reliance Industries will be a shining example of how innovation is practised in almost everything that they do. Here are few things that set them apart: y "Impossible is an inspiring word" - Nothing turns on the leadership at Reliance Industries than this magical word. Again to quote the Jamnagar example, it was considered impossible to turn a barren land into a greenbelt. Today mangoes grown in Jamnagar are sold in Harrods London. "Hands on thinking, hands off execution." - It is characteristic of Reliance leadership. They think everything through and meticulous planning is their hall mark. When it comes to execution empowerment delegation down to the last employee in the chain is clearly demonstrated. "First time it is learning. Second time it is a mistake." - Mistakes are never frowned upon; instead they are treated as a learning opportunity. It is one such mistake converted to learning that created the world's largest 'Craft Centre' located at Jamnagar. Cumulatively it has trained 1, 50,000 workmen - electricians, welders, carpenters.

"Sense of urgency" - Reliance speed is legendary now. Reliance has mastered project management skills and has made it virtually into a fine art. It is this sense of speed that restored operations in record time in Jamnagar, Patalganga and Hazira after being affected by cyclones and floods. "Think. Anticipate. Be prepared." Part of meticulous thinking is the ability to anticipate problems. "Every transformation initiative will face resistance. It is our job to anticipate the resistance, take the responsibility to earn the respect of all stakeholders to create a win-win business model." "Dreams and Vision are the most potent fuels in the world." - This is an unmistakable Reliance hallmark espoused both by the founder Chairman Sh. Dhirubhai Ambani and the current Chairman Sh. Mukesh Ambani. To a question on what would be his next big ambition Sh. Mukesh Ambani answered "Rural transformation. Creating direct employment for half a million people in rural India. Creating a supply chain that the world will envy." "Measuring success differently" - Developing a metric to measure how much money was spent, is just one example of inspiring people to think and act differently and effectively. "Asking the right questions." - Reliance Leadership excels in asking the right questions. The company folklore is replete with examples of deceptively simple questions, leading on to incredible outcomes. Commonsense is the bedrock of such thinking.

"Hard work, timely decisions, speed and ingenuity" says one of the senior managers of Reliance Industries to sum up what Reliance is all about. It is evident that Reliance Industries is where it is today because of Innovation in thinking and execution. Given its ambition for India and its own organization Reliance leadership has now taken on a major initiative in the innovation domain. The leadership of RIL recognizes that its biggest competitive advantage and differentiator in the future would be innovation. Innovation has to become the language, the behaviour definer, the culture and the soul of Reliance, even more explicitly than ever before. Manufacturing Facilities Reliance Industries Limited operates world-class manufacturing facilities across the country at Allahabad, Barabanki, Dahej, Hazira, Hoshiarpur, Jamnagar, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara. Allahabad Manufacturing Division is located in Allahabad, Uttar Pradesh. It is equipped with batch polymerization and continuous polymerization facilities. Barabanki Manufacturing Division is located near Lucknow, Uttar Pradesh. It manufactures Black Fibre. Dahej Manufacturing Division is located near Bharuch, Gujarat. It comprises of an ethane / propane recovery unit, a gas cracker, a caustic chlorine plant and 4 downstream plants, which manufacture polymers and fibre intermediates. Hoshiarpur Manufacturing Division is located in Hoshiarpur, Punjab. It manufactures a wide range of PSF, PFF, POY and polyester chips. Hazira Manufacturing Division is located near Surat, Gujarat. It comprises of a Naptha cracker feeding downstream fibre intermediates, plastics and polyester plants. Jamnagar Manufacturing Division is located near Jamnagar. It comprises of a petroleum refineries and associated petrochemical plants. The refineries are equipped to refine various types of crude oil (sour crude, sweet crude or a mixture of both) and manufactures various grades of fuel from motor gasoline to Aviation Turbine Fuel (ATF). The petrochemicals plants produces plastics and fibre intermediates. Nagothane Manufacturing Division is located in Raigad, Maharashtra. It comprises of an ethane and propane gas cracker and five downstream plants for the manufacture of polymers, fibre intermediates and chemicals. Nagpur Manufacturing Division is located in Nagpur, Maharashtra. It manufactures polyester filament yarn, dopedyed specialty products of different ranges, fully drawn yarn and polyester chips. Naroda Manufacturing Division is located near Ahmedabad, Gujarat, is RIL s first manufacturing facility. This synthetic textiles and fabrics manufacturing facility manufactures and markets woven and knitted fabrics for home textiles, synthetic and worsted suiting and shirting, ready to wear garments and automotive fabrics.

Patalganga Manufacturing Division is located near Mumbai, Maharashtra. It comprises of polyester, fibre intermediates and linear alklyl benzene manufacturing plants. Silvassa Manufacturing Division is located in the Union Territory of Dadra and Nagar Haveli. It manufactures a wide range of specialty products such as Recron Stretch, Linen Like, Melange, Thick-n-thin and Bi-shrinkage yarns. Vadodara Manufacturing Division is located in Vadodara, Gujarat. It comprises of a Naptha cracker and 15 downstream plants for the manufacture of polymers, fibres, fibre intermediates and chemicals. Each of these complexes has world class manufacturing facilities. Naroda Naroda Manufacturing Division located near Ahmedabad, Gujarat, is RIL s first manufacturing facility. This synthetic textiles and fabrics manufacturing facility manufactures and markets woven and knitted fabrics for home textiles, synthetic and worsted suiting and shirting, ready to wear garments and automotive fabrics. Complex represents the largest investment in the textile industry at a single location.Naroda complex is India's most modern textile complex - a recognition bestowed by the WorldBank. Naroda complex was started in 1966 with just four warp knitting machines and 68 people. Reliance policy of backward integration had ensured that the original manufacturing activities,which were confined to fabric, finally encompassed everything that went into fabrics, viz. crude to fabric. In certain parts of the country, the fabric manufacturing complex, with the brand name Vimal, continues to be synonymous with Reliance Industries Ltd. The umbrella brand Vimal later on became Only Vimal. One of the largest complexes of its kind, Naroda has a specialplace in the history of Reliance even though the other Reliance operations have grown much larger over the years. The activities at Naroda complex, since its inception, have also witnessed substantial growth. Fabrics of various types - suiting, shirting, home textiles - are manufactured here. The most distinctive feature of Naroda complex is the varied product group manufactured requiring different creative techniques are all housed under one complex. This feature of Naroda is without a parallel. The Naroda Manufacturing Division continues to maintain technological edge and continues to enjoy the status as one of the most modern, state-of-the-art textile plants in the country. Jamnagar Jamnagar Manufacturing Division is located near Jamnagar, Gujarat. It comprises of a petroleum refinery and associated petrochemical plants. The refinery is equipped to refine various types of crude oil (sour crude, sweet crude or a mixture of both) and manufactures various grades of fuel from motor gasoline to Aviation Turbine Fuel (ATF). The petrochemicals plants produces plastics and fibre intermediates. Created in a record time of less than three years, the Jamnagar Manufacturing Division would always remain a special experience for Reliance. The project is of titanic proportion and has taken, for its completion, millions of engineering man-hours spread over many international engineering offices; thousands of tonnes in equipment and material, procured from leading suppliers across the globe; highly advanced construction equipment of unbelievable sizes; construction workforce of over 75,000 working round the clock for months; a great number of innovative techniques in project execution; and project management expertise of Reliance acquired over the past several years. With a Complexity Index of 11.3 (as defined by the Nelson Complexity Index) RIL's refinery at Jamnagar is able to process heavy and sour crude oils to produce high value products. This allows the Company to benefit from the lower input cost compared to light crude oils. The Jamnagar Manufacturing Division has a 33 - million tonnes per annum refinery that is fully integrated with downstream petrochemicals units which manufacture naphtha-based aromatics as well as propylene-based polymers. Situated on the northwest coast of India, the integrated refinery-cumpetrochemicals complex is located at Motikhavdi, Lalpur Taluka, Jamnagar District, in the state of Gujarat. It is in proximity to the Gulf of Kutch, a sheltered bay close to the Middle-East crude oil sources. The location of RIL's refinery on the west coast of India supported by world-class logistics and port facilities provides the Company with freight advantages. Most of the crude imported is transported on Very Large Crude Carriers ("VLCC"). The refinery has operated at near 100% utilization with minimal downtime, consistently outperforming the average utilization rates of refineries in the Asia Pacific region, the European Union and North America, as

reported by PEL Market Services, Biannual Refining Report, July 2005. With a Complexity Index of 11.3 (as defined by the Nelson Complexity Index), the refinery has achieved Gross Refining Margins ("GRMs") that are consistently higher than the benchmark Singapore complex margins. In addition to the operating efficiencies achieved by this refinery, it is also differentiated from other global refineries in terms of its ability to take advantage of the light/heavy crude price differential. The existing refinery complex at Jamnagar has more than 50 process units, which together process the basic feedstock, crude oil, to obtain various finished products deploying the following major refining processes: y y y y Crude oil distillation (Atmospheric as well as vacuum distillation) Catalytic cracking (Fluidised Catalytic Cracker) Catalytic reforming (Platforming) Delayed Coking

Special features of the refinery complex : Reliance refinery configuration is characterized by its superior product slate as compared to that of the other refineries. Two important features in this regard are: y y High proportion of high-value products such as propylene and LPG (adding to over 10% on crude processed as compared to 2-3% for most other refineries) Nil production of low-value "black oils" - fuel oil (compared to 12-20% on crude processed for most other refineries) under normal circumstances.

Process technologies: All process units of the Jamnagar Manufacturing Division are based on state of the art technologies. Some of the major technologies are: y y y y y y y y Hydrodesulphurisation : UOP Catalytic Reforming Unit : UOP Fluid Catalytic Cracking Unit : UOP Delayed Coker Unit : Foster Wheeler Inc. Sulphur Recovery : Black & Veatch Pritchard Hydrogen Generation : Linde A G Merox Treating : UOP SHP / TAME* : UOP

* (Selective Hydrogenation Process / Tertiary Amyl Methyl Ether) All process units in the Jamnagar Manufacturing Division, the largest grass-roots refinery complex in the world, are of world-scale sizes. In fact, some of the process units are the largest operating units in the world. A few examples are: y y y Delayed Coking unit Fluidised Catalytic Cracking unit TAME (Tertiary Amyl Methyl Ether) unit

The new SEZ refinery RIL's new refinery in the Special Economic Zone at Jamnagar, is the world's sixth largest and has a Nelson Complexity Index of 14.0, making it the largest and most complex refinery globally. The refinery has a capacity of processing 580,000 barrels of crude oil per stream day (BPSD. In addition to size and complexity, the SEZ refinery has several advantages: y y y y Ability to process challenged crude varieties Able to produce Euro V grades of gasoline and diesel Highly competitive operating cost due to advantages of scale, technology and operational synergies Capability to produce alkylates - a premium gasoline blend component. It will have the flexibility to maximize production of alkylate by converting butane to isobutene

All key processing units, including the Fluidised Catalytic Cracking Unit (FCCU), Vacuum Gas Oil (VGO), Hydrogen Manufacturing Unit (HMU), Diesel Hydro De-Sulphurisation (DHDS), Propylene Recovery Unit (PRU), Coker unit and the Polypropylene complex are operating close to their respective design capacities. All the support units and utilities are fully operational and presently the refinery is operating at its design capacity.

The refinery has successfully processed more than 20 types of crude oils, including difficult crude oils within a few months of its start-up, thus reflecting superior quality of assets and capabilities. Exports have commenced to 26 countries, including to the US and Europe. Polypropylene Plant :

The Polypropylene plant at Jamnagar has a huge capacity of 1030 KTA of Polypropylene producing a wide range of grades that cater to an equally diverse range of sectors which include Raffia, Films (BOPP/IPP), Injection Moulding, Extrusion, Fibre etc. The new PP line in the SEZ facility resulted in additional capacity of 900 KTA. Products & Brands The Company expanded into textiles in 1975. Since its initial public offering in 1977, the Company has expanded rapidly and integrated backwards into other industry sectors, most notably the production of petrochemicals and the refining of crude oil. The Company from time to time seeks to further diversify into other industries. The Company now has operations that span from the exploration and production of oil and gas to the manufacture of petroleum products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals and synthetic textiles and fabrics. The Company's major products and brands, from oil and gas to textiles are tightly integrated and benefit from synergies across the Company. Central to the Company's operations is its vertical backward integration strategy; raw materials such as PTA, MEG, ethylene, propylene and normal paraffin that were previously imported at a higher cost and subject to import duties are now sourced from within the Company. This has had a positive effect on the Company's operating margins and interest costs and decreased the Company's exposure to the cyclicality of markets and raw material prices. The Company believes that this strategy is also important in maintaining a domestic market leadership position in its major product lines and in providing a competitive advantage. The Company's operations can be classified into four segments namely: y y y y Petroleum Refining and Marketing business Petrochemicals business Oil and Gas Exploration & Production business Others

The Company has the largest refining capacity at any single location. The Company is: y y y y Largest producer of Polyester Fibre and Yarn 5th largest producer of Paraxylene (PX) 5th largest producer of Polypropylene (PP) 8th largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG)

Growth through Recognition Reliance has merited a series of awards and recognitions for excellence for businesses and operations. Leadership y Shri Mukesh Ambani, Chairman & Managing Director, RIL, has been nominated to a 'key advocacy group of Millennium Development Goals', whose mandate includes finding ways to fight socio-economic evils such as poverty, by the United Nations in 2010. Shri Ambani is the only Indian to be a part of the MDG Advocacy Group that comprises eminent international personalities. Shri Mukesh Ambani has been re-elected as Vice Chairman of the Business Council for Sustainable Development's (WBCSD) Executive Committee for a second consecutive term in 2010. The Foundation Board of the World Economic Forum (WEF) elected Shri Mukesh Ambani on its Board. WEF's mission is to improve the state of the world and the elected board members make valuable contributions to this mission through their involvement. Shri Mukesh Ambani received the prestigious 'Dwight D Eisenhower Global Leadership Award' at the Business Council for International Understanding's Annual Global Awards Gala in 2010.

The Asia Society, New York presented the 'Global Vision Award' to Shri Mukesh Ambani, honoring global leaders who help promote understanding between Asians and Americans in 2010. Shri Mukesh Ambani received the NDTV Profit Business Leadership Award 2010 from the Finance Minister, Government of India in 2010. The senior editors of Financial Chronicle unanimously voted Shri Mukesh Ambani as 'Businessman of the Year for 2010'. Shri PMS Prasad was bestowed with the "Outstanding Achievement OCEANTEX 2010. Natural Gas" Award at the

Corporate Ranking & Ratings: y RIL continues to be featured, for the sixth consecutive year, in the Fortune Global 500 list of the World's Largest Corporations, ranking for 2010 is as follows:   Ranked 175 based on Revenues Ranked 100 based on Profits

RIL is ranked 68th in 2010, in the Financial Times' FT Global 500 list of the world's largest companies (up from previous year's 75th rank). RIL has been ranked at 20th position, on the basis of sales, in the ICIS Top 100 Chemicals Companies list. RIL is the only Indian company in the world's Top 20 chemical companies in the global ranking. RIL has also been named as the 8th biggest gainer in the list in terms of operating profits. RIL is the only Indian company to get a perfect score from CLSA Asia-Pacific Markets (CLSA) in a list of Asia's best companies in terms of CSR and termed the Company as the region's 'Corporate Good Guy'. In its 'Ethical Asia' 2010 report, CLSA has named RIL among its top picks for providing very good data and going well beyond required disclosure. RIL is rated as the 33rd 'Most Innovative Company in the World' in a survey conducted by the US financial publication- Business Week in collaboration with the Boston Consulting Group (BCG). Further, in 2010, BCG has ranked RIL second amongst the world's 10 biggest, 'Sustainable Value Creators', companies for creating the most shareholder value for the period 2000 to 2009.

Project Management E&P Division received the Petrotech-2010 Special Technical Award in the 'Project Management' category for completion of their Krishna Godavari Gas project ahead of schedule. Health, Safety and Environment y Allahabad Manufacturing Division received a rating of 90% for its environmental initiatives from British Safety Council in 2010. Barabanki Manufacturing Division received '5 Star Rating on BSC Environment' from British Safety Council in 2010. Dahej Manufacturing Division received 'Greentech Environment Excellence Award 2010 - Gold' for its excellence in environment practices from Greentech Foundation in 2010. Dahej Manufacturing Division received the 'National Award for the Prevention of Pollution in Petrochemicals Sector' for its excellence in environment practices from the Ministry of Environment & Forests, Government of India, in 2010. Dahej Manufacturing Division received "Our Cup of Joy India's Best Practices on Water Confederation of Indian Industry (CII) October 2010" Award for the Best practice of water conservation of "Utilizing Cooling Tower Blow Down water for Irrigation Purpose". Hazira Manufacturing Division received the DuPont Safety Award for outstanding initiatives towards workplace safety enhancements and accident prevention in 2010, thus making RIL the first Indian / Asian company to win this award.

Hazira Manufacturing Division received the British Safety Council's (BSC), Five Star Environment Award for its "beyond compliance" initiatives, best environmental practices, innovations and resource conservation efforts in 2010. Hazira Manufacturing Division won the UK Energy Institute's Safety Award for 'Road Safety TRUST Programme' in 2010, making RIL the first Indian / Asian company to win this award. Hazira Manufacturing Division won the FGI Award for Excellence in Environmental Pollution Abatement and Preservation in 2010. Hazira Manufacturing Division won CII's Best Environmental Practice Award under "Most Innovative Project" and "Innovative Project" category in January 2011. Hoshiarpur Manufacturing Division, for four consecutive years in a row won the 'State Safety Award' from Punjab Industrial Safety Council & Chief Inspector of Factories, Punjab in 2011. Jamnagar Manufacturing Division Domestic Tariff Area (DTA) Refinery received the 'Golden Peacock Award for Occupational Health & Safety' for pace setting performance in OH and Safety in 2010. Jamnagar Manufacturing Division DTA Refinery received 'Safety Innovation Award' from Safety & Quality Forum of Institute of Engineers (India). Jamnagar Manufacturing Division DTA Refinery won the "Greentech Platinum Award (2010)" Safety Category, in Petroleum Refinery Sector for its outstanding Achievement in Safety Management. Jamnagar Manufacturing Division has been granted by The National Accreditation Board for Laboratories (NABL), Ministry of Science & Technology; Government of India, "NABL accreditation" based on ISO 15189: 2007 for the DAOH & FWC Medical Laboratory. Jamnagar Manufacturing Division Special Economic Zone (SEZ) Refinery received '5 Star Award for Health & Safety' from British Safety Council for sustained performance in Health & Safety in 2010. Jamnagar Manufacturing Division SEZ Refinery has won the prestigious 'Greentech Environment Excellence Award 2010' in Gold Category in Petroleum Refinery Sector for its best practices in Environment Management. Jamnagar Manufacturing Division SEZ Refinery has been selected as the winner of the "10th Annual Greentech Safety Award 2011", in Platinum Category in the Petroleum Refinery Sector. Nagothane Manufacturing Division received the "Vana Shree Award" from the State Government of Maharashtra in 2010. Nagpur Manufacturing Division received the 'Sword of Honour' from the British Safety Council in 2010. Vadodara Manufacturing Division received the CII Environmental Best Practice Award in 2011.

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Energy and Water Conservation / Efficiency y Hazira Manufacturing Division won the 'Excellent Energy Efficient Unit Award for FY 2009-10' from CII in 2010. Dahej Manufacturing Division bagged the 'Excellent Energy Efficient Unit Award 2010' for its energy conservation efforts from CII in 2010. Dahej Manufacturing Division received the 'National Energy Conservation Award 2010' for its energy conservation initiatives from the Ministry of Power, Government of India. Jamnagar Manufacturing Division received the 'National Award for Excellence in Energy Management' for its energy conservation techniques from CII in 2010. Jamnagar Manufacturing Division received the 'I.C.C. Award for Excellence in Energy Management' for its energy performance from the Indian Chemical Council in 2010.

Technology, Patents, R&D and Innovation y Nagpur Manufacturing Division received the 'Innovation Quest 2010 Trophy' instituted by the Indian Institution of Industrial Engineering.

E&P's KG-D6 won the 'Innovation for India Awards 2010' instituted by the Marico Innovation Foundation for their combined synthesis of advanced technologies, extreme engineering, innovative execution, yielding unprecedented results and impact on India's energy security. Hazira Manufacturing Division won the "Innovative Project" from the CII in 2010. Hazira Manufacturing Division won the FGI Federation of Gujarat Industries Award for technology development in 2010. Hazira Manufacturing Division won the Indian Chemical Council Award for chemical plant design and engineering in 2010. Reliance Technology Group (RTG) received "Certificate of Merit" from the Federation of Gujarat Industries and "ICC award for excellence in chemical plant design and engineering" in 2010.

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Retail y Reliance Footprint received the Retailer of the Year Award in the Non Apparel and Footwear category at Asia Retail Congress 2010. Reliance TimeOut received the Retailer of the Year Award in the Leisure Category at Asia Retail Congress 2010. Vision Express was bestowed the 'Award 2010' for its contribution by the Netherlands India Chamber of Commerce and Trade in 2010. Reliance Trends received the 'Retail Marketing Campaign of the Year Award' at the Asia Retail Congress 2010. Reliance Trends received the 'Impactful Retail Design and Visual Merchandising of the Year Award' at the Asia Retail Congress 2010.

Sustainability y Jamnagar Manufacturing Division won the 'Golden Peacock Global Award for Sustainability for the year 2010'.

Major Subsidiaries & Associates Major Subsidiaries : Reliance Netherlands B.V. Reliance Retail Limited Reliance Jamnagar Infrastructure Limited Reliance Haryana SEZ Limited Reliance Industrial Investments and Holdings Limited Reliance Ventures Limited Reliance Strategic Investments Limited Reliance Exploration and Production DMCC Reliance Industries (Middle East) DMCC Reliance Commercial Associates Limited RIL (Australia) Pty Ltd Recron (Malaysia) Sdn Bhd Gulf African Petroleum Corporation (Mauritius)

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GAPCO Tanzania Limited GAPOil Tanzania Limited GAPCO Kenya Limited Transenergy Kenya Limited GAPCO Uganda Limited GAPCO Rwanda Sarl GAPOil (Zanzibar) Limited Reliance Fresh Limited Retail Concepts and Services (India) Limited Reliance Retail Insurance Broking Limited Reliance Dairy Foods Limited Reliance Retail Finance Limited RESQ Limited Reliancedigital Retail Limited Reliance Financial Distribution and Advisory Services Limited Reliance Hypermart Limited Reliance Retail Travel & Forex Services Limited Reliance Brands Limited Reliance Wellness Limited Reliance Footprint Limited Reliance Integrated Agri Solutions Limited Reliance Trends Limited Reliance Lifestyle Holdings Limited Reliance Universal Ventures Limited Reliance Autozone Limited Strategic Manpower Solutions Limited Reliance Gems and Jewels Limited Delight Proteins Limited Reliance F&B Services Limited Reliance Agri Products Distribution Limited Reliance Leisures Limited Reliance Retail Securities and Broking Company Limited Reliance Home Store Limited Reliance Trade Services Centre Limited Reliance Food Processing Solutions Limited Reliance Supply Chain Solutions Limited Reliance Loyalty and Analylitics Limited Reliance Digital Media Limited

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Reliance-GrandOptical Private Limited Reliance Vantage Retail Limited Reliance People Serve Limited Reliance Infrastructure Management Services Limited Reliance Petroinvestments Limited Reliance Universal Commercial Limited Reliance Global Commercial Limited Wave Land Developers Limited Reliance Global Business B.V. Reliance Global Energy Services Limited Reliance Gas Corporation Limited Reliance Global Energy Services (Singapore) Pte. Ltd Reliance Polymers (India) Limited Reliance Polyolefins Limited Reliance Aromatics & Petrochemicals Private Limited Reliance Energy and Project Development Private Limited Reliance Chemicals Limited Reliance Universal Enterprises Limited Reliance One Enterprises Limited Reliance Personal Electronics Limited International Oil Trading Limited Reliance Review Cinema Limited Reliance Replay Gaming Limited Reliance Nutritional Food Processors Limited Reliance Commercial Land & Infrastructure Limited Reliance Eminent Trading & Commercial Private Limited Reliance Progressive Traders Private Limited Reliance Prolific Traders Private Limited Reliance Universal Traders Private Limited Reliance Prolific Commercial Private Limited Reliance Comtrade Private Limited Reliance Ambit Trade Private Limited Reliance Corporate IT Park Limited Reliance Petro Marketing Limited LPG Infrastructure (India) Limited RIL USA Inc. Reliance Corporate Centre Limited Reliance Corporate Services Limited

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Reliance Convention and Exhibition Centre Limited Central Park Enterprises DMCC Reliance International B.V. Reliance Oil and Gas Mauritius Limited Reliance Exploration and Production Mauritius Limited Reliance Holding Cooperatief U. A. Reliance Holding Netherlands B. V. Reliance International Gas B. V. Reliance Exploration and Production B. V. Reliance Exploration and Production Limited Reliance Holding USA, Inc. Reliance Marcellus LLC Reliance Strategic (Mauritius) Limited Indiawin Sports Private Limited Reliance Eagleford Midstream LLC Reliance Ealgeford Upstream LLC Reliance Eagleford Upstream GP LLC Reliance Eagleford Upstream Holding LP Infotel Broadband Services Limited Mark Project Services Private Limited Reliance Energy Generation and Distribution Limited Reliance Marcellus II LLC Reliance Industries Investment and Holding Private Limited Reliance Security Solutions Limited Reliance Office Solutions Private Limited GenNext Innovation Ventures Private Limited Reliance Home Products Limited Reliance Style Fashion India Limited Reliance Styles India Limited Infotel Telecom Limited Rancore Technologies Private Limited Reliance Bio-fuel Holding BV

Growth through Energy Security for India

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India imports about two-thirds of its crude oil requirement. Exploration and production of oil and gas is critical for India's energy security and economic growth. Reliance's oil and gas exploration and production business is therefore inexorably linked with the national imperative. Exploration and production, the initial link in the energy and materials value chain, remains a major growth area and Reliance envisions evolving as a global energy major. Energy markets have improved significantly over the past 12-15 months as a result of improved economic growth, higher demand for refined products and limited supplies of crude oil. In 2010, global oil demand grew by 3.4% (or 2.9 MMBD) to 87.9 MMBD, which is the highest growth in the last 30 years. Emerging Asia which comprises India and China, accounted for 40% of the oil demand increase. Global LNG markets also grew by 13% and are currently at 275 million tonnes per annum (MMTPA). Crude prices increased 25% during the year wherein Brent oil prices averaged $86.7/bbl vis-a-vis $69.5/bbl in FY10. In FY-11, the US benchmark Henry Hub gas prices averaged $4.13/MMBTU vis-a-vis $3.98/MMBTU in FY-10. Prices remained range-bound in the US due to excess drilling and lack of export infrastructure. However, Asian LNG prices remained linked to crude oil and spot prices in recent months touched $10-12/MMBTU. It is expected that global energy consumption growth will average at around 1.7% per annum over the next two decades. Of this, non-OECD energy consumption is expected to be 68% higher by 2030, averaging 2.6% p.a. growth, and accounting for 93% of global energy growth. OECD energy consumption in 2030 is expected to be around 6% higher than today, with growth averaging at a measly 0.3% p.a. over the next two decades. The fuel mix is changing relatively slowly, due to long asset lifetime, but gas and non-fossil fuels are gaining share at the expense of coal and crude oil. The fastest growing fuels are renewables (including biofuels) which are expected to grow at 8.2% p.a. 2010-30; among fossil fuels, gas grows the fastest (2.1% p.a.). Non-OECD countries are likely to account for 80% of the global rise in gas consumption, with growth averaging at around 3% p.a. Demand growth is expected to be the fastest in non-OECD Asia (4.6% p.a.) and the Middle East (3.9% p.a.). It is expected that over the next two decades, China could consume about 43 BCF per day, which is comparable to that of the 47 BCF per day that EU currently consumes. The growth is expected to remain modest in OECD markets (1% p.a.), particularly in North America. Oil continues to suffer a long run decline in market share, while gas is steadily gaining. Natural gas is projected to be the fastest growing fossil fuel globally. Production is expected to grow in every region except Europe, with Asia accounting for the world's largest production and consumption increments. The IEA estimates that global upstream capital spending, which had fallen by 15% in 2009, has rebound in 2010 and is pegged at $ 470 billion. Global offshore capital expenditure is estimated at $ 150 billion and nearly $ 874 billion is expected to be spent over the next five years. A substantial portion of this investment will flow into deepwater. Deep-water capital expenditure is pegged at nearly $ 50 billion and deep-water production is set to double in the next five years. Currently, there are very few fields with water depths of more than 2,000 meters under development. Many of the recent discoveries have been in those water depths. The capital expenditure sanctioned in this water depth is likely to double by 2012. The role of unconventional oil is also expected to increase significantly and will touch 10% of world oil demand by 2035. India continues to remain amongst the fastest growing economies of the world with a projected growth of 8-9%. Consequently, India's energy needs are expected to treble by 2035 from 468 million tonnes of oil equivalent (MTOE) to nearly 1405 MTOE. India can fulfill its agenda for climate change as natural gas used to generate power has half the CO2 emissions of conventional coal power generation and near-zero sulphur emissions. Indian gas market

In India, gas constitutes around 10% of the current energy basket compared to the global average of 24% and hence presents a vast potential for growth. The demand for natural gas in India is expected to grow at a CAGR of 10% over the next five years and could soon be a significant player in the global gas market. RIL - BP partnership On February 21, 2011, RIL and BP announced a strategic partnership between the two companies and signed the relationship framework and transactional agreements. The partnership across the full value chain comprises BP taking a 30% stake in 23 oil and gas production sharing contracts that Reliance operates in India, including the producing KG-D6 block. The partnership will aim to combine BP's deep-water exploration & development capabilities with Reliance's project management & operations expertise. The two companies will also form a joint

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venture (50:50) for the sourcing and marketing of gas in India and bid together for incremental opportunities in the deep-water blocks in the east coast of India. BP will pay RIL an aggregate consideration of $ 7.2 billion, and completion adjustments, for the interests to be acquired in the 23 production-sharing contracts. Future performance payments of upto $ 1.8 billion could be paid based on exploration success that results in development of commercial discoveries. RIL will continue to be the operator under the production-sharing contracts. Completion of the transactions is subject to regulatory and the Government of India approvals. RIL gas marketing

KG-D6 was the single largest source of domestic gas in the country for FY-11 and accounted for almost 35% of the total gas consumption in India. The gas from KG-D6 catered to demand from 57 customers in critical sectors like fertilizer, power, steel, petrochemicals and refineries. The gas from KG-D6 accounted for about 44% of the total domestic gas production paving the way for increased energy independence for the country. RIL's E&P business: KG-D6

KG-D6 gas fields completed 730 days of 100% uptime and zero-incident production. An average daily gas production from KG-D6 block for the year was 55.9 MMSCMD with a cumulative production of 1,257 BCF since inception, of which 720 BCF was produced in the current fiscal. An average oil production for the year from the block was 21,971 barrels per day with a cumulative production of 14 MMBL of oil and condensate since inception, of which 8 MMBL of oil and 1 MMBL of condensate was produced in the current fiscal. In the D1-D3 gas fields a total of 20 wells have been drilled, of which 18 are production wells. Of these, 2 wells have been drilled this fiscal. 6 wells in the D26 field are under production. Of these, MA-2 which was earlier a gas injection well has been converted to a production well since April 2010. An integrated development plan for all gas discoveries in KG-D6 is being conceptualized. This will encompass existing wells and other discoveries within the block to maximize capital efficiency and to accelerate monetization. Other domestic blocks

The Company made six discoveries during the year which are as follows: y y Well W1 in the KG-V-D3 block Well AF1, AJ1, AT1, AN1 and AR1 in on-land CB-10 block

The Company has also submitted initial proposal for commerciality to DGH for review and discussion for the following blocks: y y y Discovery D33 in GS-01 block Discoveries D39 and D41 in KG-V-D3 block Discovery D36 in KG-D4 block

RIL has submitted an integrated appraisal programme for all discoveries in Part A of CB-10 block. Further, RIL has been continuing with the appraisal activities for the other discoveries in KG-D6, KG-V-D3 and CB-10 blocks. Panna-Mukta and Tapti fields

The Panna-Mukta fields produced 9.3 MMBL of crude oil and 52.1 BCF of natural gas in FY-11 a decline of 31% and 25% respectively over the previous year. The lower volumes are on account of complete shutdown due to failure of the single point mooring system (SPM) and parting of anchor chains 4 and 5 to the SPM from July 20, 2010 to October 25, 2010. Tapti fields produced 1.2 MMBL of condensate and 95.2 BCF of natural gas in FY-11 a decline of 22% and 13% respectively over the previous year. The decrease in production was due to a natural decline in the reserves. Drilling of 6 wells in Panna-L is expected to commence soon and oil production is expected in the later part of FY12. Its reserves are estimated at 7.0 MMBL. The anticipated production from all 6 wells is approximately 3,000 BOPD. CBM blocks

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RIL holds 3 CBM blocks in Sohagpur (East), Sohagpur (West) and Sonhat. So far, RIL has completed the following work in the Sohagpur (East) and Sohagpur (West) blocks: y y y y Over 40 core holes drilled, logged and tested for gas content, permeability and coal properties 31 wells air drilled and tested for productivity 75 hydraulic fracturing jobs done 5 cavitation completion wells and 2 sets of in-seam horizontal wells

The process for acquiring land for well sites, market assessment & infrastructure for evacuation and transportation of gas has commenced. International business During the year, Reliance entered into one of the fastest growing opportunities emerging in the U.S. unconventional gas business through three upstream joint ventures. These joint ventures will materially increase Reliance's resources base and provide Reliance with an entirely new platform to grow its exploration and production business while simultaneously enhancing its ability to operate unconventional resource projects in the future. RIL - Chevron RIL, through its subsidiary, Reliance Marcellus LLC, entered into a joint venture with Atlas Energy, Inc. (now owned by Chevron Corporation) under which Reliance acquired a 40% interest in Atlas' core Marcellus shale acreage position. The acquisition cost of participating interest in the JV consisting of $ 339 million of upfront payment and an additional payment of $ 1.36 billion under a carry arrangement for 75% of Atlas's capital costs over an anticipated seven and a half year development programme. Reliance becomes a partner in approximately 300,000 net acres of undeveloped leasehold in the core area of the Marcellus shale in southwestern Pennsylvania. The acreage will support the drilling of over 3,000 wells with a net resource potential of approximately 13.3 TCFe (5.3 TCFe net to Reliance). While Atlas will serve as the development operator for the joint venture, Reliance is expected to begin acting as development operator in certain regions in coming years as part of the joint venture. Under the framework of the joint venture, Atlas will continue acquiring leasehold in the Marcellus shale region and Reliance will have the option to acquire 40% share in all new acreage. Reliance also obtains the right of first offer with respect to potential future sales by Atlas of around 280,000 additional Appalachian acres currently controlled by Atlas. RIL - Pioneer RIL, through its subsidiary, Reliance Eagleford Upstream LP, entered into a joint venture with Pioneer Natural Resources Company under which Reliance acquired a 45% interest in Pioneer's core Eagle Ford shale acreage position in two separate transactions. Pioneer and Newpek LLC, Pioneer's existing partner in Eagle Ford, simultaneously conveyed 45% of their respective interests in the Eagle Ford to Reliance. Newpek owned an approximate 16% nonoperated interest in Pioneer's core Eagle Ford shale acreage. Following the transaction, Pioneer, Reliance and Newpek own 46%, 45% and 9% of the joint venture interests, respectively. The joint venture has an approximate net working interest of 91% in 289,000 gross acres implying 263,000 net acres. Reliance paid $ 1.315 billion for its implied share of 118,000 net acres. This upstream transaction consideration included combined upfront cash payments of $ 263 million and additional $ 1.052 billion capital costs under a carry arrangement for 75% of Pioneer's and Newpek's capital costs over an anticipated four years. The joint venture's leasehold, which is largely undeveloped, is located in the core area of the Eagle Ford shale in south Texas. Low operating costs, significant liquids content (70% of the acreage lies within the condensate window) and excellent access to services in the region combine to make the Eagle Ford one of the most economically attractive unconventional resources in North America. Pioneer believes the acreage will support the drilling of over 1,750 wells with a net resource potential to the joint venture of approximately 10 TCFe (4.5 TCFe net to RIL). The joint venture plans to increase the current drilling programme to approximately 140 wells per year within three years. Also included in the transaction is current production of 28 MMCFe/d (11 MMCFe/d net to Reliance) from five currently active horizontal wells. While Pioneer will serve as the development operator for the upstream joint venture, Reliance is expected to begin acting as development operator in certain areas in coming years as part of the joint venture. Under the framework of the joint venture, Pioneer will continue acquiring leasehold in the Eagle Ford Shale and Reliance will have the option to acquire a 45% share in all newly acquired acres. Additionally, Reliance and Pioneer formed a midstream joint venture that will service the gathering needs of the

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upstream joint venture. Reliance's subsidiary, Reliance Eagleford Midstream LLC, paid $ 46 million to acquire a 49.9% membership interest in the joint venture. Pioneer and Reliance will have equal governing rights in the joint venture and Pioneer will serve as operator. RIL - Carrizo RIL, through its subsidiary, Reliance Marcellus II, LLC, entered into a joint venture with Carrizo Oil & Gas, Inc. Under the transaction, Reliance acquired a 60% interest in Marcellus shale acreage in Central and Northeast Pennsylvania that was held in a 50:50 joint venture between Carrizo and ACP II Marcellus LLC, an affiliate of Avista Capital Partners. Pursuant to the transaction, Reliance acquired 100% of Avista's interest and 20% of Carrizo's interests in the joint venture. Reliance and Carrizo own 60% and 40% interests, respectively, in a newly formed joint venture between the companies. Reliance agreed to a total consideration of $ 392 million, comprising $ 340 million of initial payment and $ 52 million of drilling carry obligations. The drilling carry obligations will provide for 75% of Carrizo's share of development costs over an anticipated two year development programme. The joint venture will have approximately 104,400 net acres of undeveloped leasehold in the core area of the Marcellus shale in central and northeast Pennsylvania, of which Reliance's 60% interest will represent approximately 62,600 net acres. This acreage is expected to support the drilling of approximately 1,000 wells over the next 10 years, with a net resource potential of about 3.4 TCFe (2.0 TCFe net to Reliance). Conventional E&P international blocks RIL has 13 blocks in its international conventional portfolio, including 2 in Peru, 3 in Yemen (1 producing and 2 exploratory), 2 each in Oman, Kurdistan and Colombia, 1 each in East Timor and Australia; amounting to a total acreage of over 99,145 sq. km. Reliance Exploration & Production DMCC (REP DMCC) has farmed in Block 39 (Peru) with 10% participation interest and relinquished Block 155 (Peru) where REP DMCC had 28.30% participation interest. During the year, the following activity was undertaken as part of the exploratory campaign: y 2D acquisition in Yemen (Blocks 34 and 37), Oman (Block 41) and Peru (Block 39). The total 2D acquisition was 1395 LKM. 3D acquisition of 800 and 400 sq.km. of 3D in Colombia Borojo North and South respectively. Drilled 3 exploratory wells, 1 each in East Timor, Rovi and Sarta. Drilling in Timor was met with limited results.

y y

The results following the drilling campaign in blocks Oman 18 and East Timor K have not been encouraging and accordingly, the expenditure incurred on these blocks amounting to $177 million (Rs. 807 crore) has been fully provided for in the books of REP DMCC, a wholly-owned subsidiary of RIL.

Refining Processes Alkylation Alkylation is a process for chemically combining isobutane with light olefinic hydrocarbons, typically C3 and C4 olefins, (e.g.propylene, butylene) in the presence of an acid catalyst, usually sulphuric acid or hydrofluoric acid. The product, alkylate (an isoparaffin) has a high-octane value and is blended into motor and aviation gasoline to improve the antiknock value of the fuel. The light olefins are most commonly available from the Catalytic crackers. Alkylate is one of the best gasoline blending components because it is a clean burning, very low sulphur component, with no olefinic or aromatic compounds and with high octane and low vapour pressure characteristics. The Indian scenario is unique, in that on the one hand, the relative gasoline consumption is much lower vis a vis the developed counter parts, on the other hand, the C3 and C4 components, which are otherwise used in alkylation as a feedstock, offer much higher value alternative, i.e. LPG. LPG is in large deficits in India, and to meet its demand, Reliance's configuration is designed to maximize the production of LPG. Hence the processing scheme currently does not include Alkylation.

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Bottom of the Barrel Processing "Bottom of the barrel" is a term used to refer Vacuum residue (VR) boiling above 5650C. It is produced from bottom of the Vacuum Distillation Column. Traditionally this material, high in sulphur, asphaltenes and metals has been blended into heavy or industrial fuel oil. Outlets for high sulfur fuel oil are becoming increasingly scarce, with stringent emission norms for SOx and NOx . In the most parts of the world, increasing switch over from heavy fuel oil to clean combustion natural gas for power generation is already evident. The process of displacing high sulfur fuel oil is expected to gather further momentum as further switching from fuel gas to natural gas takes place for environmental and availability reasons. There are several options for the bottom-of-the barrel processing including Delayed Coking, Visbreaking and Resid Desulfurization. Reliance has selected Delayed Coking for upgrading the "bottom of barrel". Catalytic Cracking Catalytic cracking is a process which breaks down the larger, heavier, and more complex hydrocarbon molecules into simpler and lighter molecules by the action of heat and aided by the presence of a catalyst but without the addition of hydrogen. In this way, heavy oils (fuel oil components) can be converted into lighter and more valuable products (notably LPG, gasoline and middle distillate components). The catalytic cracking unit is known as the Fluidized Catalytic Cracking or FCC. The FCC is the most widely used secondary conversion process in the refinery industry. Traditionally, the FCC units have been operated on either the maximum gasoline mode or the maximum distillate mode, dependent largely on the seasonal product demand pattern. Of late, a third mode is gaining importance, that of a maximum olefin mode which maximizes LPG, propylene and butylene. In India, FCC in the max olefin mode is suitable for maximum value addition because LPG and propylene are among the highest value petroleum products. Reliance operates the Jamnagar FCC in the max olefin mode, to maximize LPG and propylene. FCC in the max olefins mode also produces isobutylene which can be used for MTBE, isobutane and butylene which can be processed into alkylate and isoamylene which can be used for TAME. MTBE, Alkylate and TAME are principal gasoline additives used to improve gasoline quality. Reliance utilizes the isoamylene from the FCC as a feedstock to produce TAME in the Jamnagar Refinery. The FCC feed is also known as vacuum gas oil (VGO) because it is generally a product from the Vacuum Distillation Column. The FCC feed can be of three types:y y y VGO Hydrotreated VGO VGO mixed with VR (Process is known as Resid FCC or RFCC).

The VGO material for the FCC feed is generated from the Vacuum Distillation Column in the CDU/VDU and from the Coker. Delayed Coking Delayed Coking is a high severity "Bottom of the barrel processing" scheme by which heavy crude oil fractions can be thermally decomposed under conditions or elevated temperatures to produce a mixture of lighter oils and petroleum coke. The light oils can be processed further in other refinery units or blended into products. The coke can be used either as a fuel or in other metallurgical applications such as the manufacturing of steel or aluminum. The Delayed Coking process achieves approximately 70% of residue conversion to lighter products compared to only about 30% in Visbreaking. Reliance has selected Delayed Coker to maximize conversion to higher products. Reliance, with a large Delayed Coker to handle 100% of Vacuum Residue, is able to achieve much higher value addition and "zero fuel oil production". Distillation (Atmospheric and Vacuum) This is the first stage in the refining for separating crude oil components at atmospheric pressure by heating, and subsequent condensing, of the fractions (unfinished petroleum products) by cooling. Distillation under reduced pressure (less than atmospheric) i.e. Vacuum Distillation lowers the boiling temperature of the liquid being distilled permitting the production of distillates at lower temperature than would be necessary in atmospheric distillation, thus avoiding coke formation.

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The Jamnagar Refinery has a combined Crude Distillation Unit / Vacuum Distillation Unit (CDU / VDU) to separate the crude oil into primarily fractions of LPG, Naphtha, Kerosene, Gasoil, Vacuum Gas Oil and Vacuum Residue. The combined CDU/VDU maximizes energy integration to minimize the energy required for primary separation. Hydrotreating Hydrotreating is used for treating petroleum fractions in the presence of catalysts and substantial quantities of hydrogen. Hydrotreating results in desulphurisation, (removal of sulphur), denitrification (removal of nitrogen compounds) and conversion of olefins to paraffins. Reliance has the highest Hydrotreating Capacity relative to crude distillation which enables it to produce world class products and high value addition. Oxygenates Oxygenates are ethers which are used as gasoline additives to improve the gasoline. Two principal oxygenates are Methyl Tertiary Butyl Ether (MTBE) and Tertiary Amyl Methyl Ether (TAME). Reforming Reforming Process rearranges hydrocarbon molecules in the naphtha (or naphthatype) feed, thereby converting paraffinic and naphthenic type hydrocarbons into aromatic type hydrocarbons, suitable for blending into finished gasoline. Since its product, reformate, is richer in aromatics than its feed, naphtha, this process is also used to produce aromatic petrochemicals (Benzene, Toluene and Xylene). The Reforming process requires high temperature and catalyst to facilitate the reaction.The Reforming catalyst contains Platinum. The Platinum based catalyst has to be protected and hence reformer feed has to be sulphur free. Thermal Cracking In this process, heat and pressure are used to break down, rearrange, or combine hydrocarbon molecules. Thermal cracking includes vis-breaking, delayed coking, fluid coking, and other similar processes. Vis-breaking Vis-breaking is a relatively mild thermal cracking process in which heavy atmospheric or vacuum-distillation bottoms are cracked at moderate temperatures to make light products and produce a lower viscosity residue than the initial feed to the unit. Vis-breaking process achieves about 30% of residue conversion to lighter products. Vis-breaking is one of the least costly upgrading processes, and is common where there is still a relatively large use of heavy fuel oil. But with the problems of surplus fuel oil compounding the world over, the importance of this process is expected to decline. Sweetening The petroleum products should be free of mercaptans (a form of sulphur compound) because otherwise it emits foul odour on burning. Sweetening is a process of mercaptan removal by oxidation. This sweetening process is also better known by the patented process name of Merox or mercaptan oxidation. Reliance has 4 sweetening units to remove mercaptans from :y y y y Saturated LPG Unsaturated LPG Gasoline Kerosene

Types of Refinery Topping Crude is a mixture of petroleum products. The topping refinery just separates the crude into its constituent petroleum products by distillation, known as Atmospheric Distillation. Topping Refinery produces naphtha but no gasoline. Hydroskimming

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The hydroskimming refinery is defined as a refinery equipped with Atmospheric Distillation, naphtha reforming and necessary treating processes. Hydroskimming refinery is more complex than a topping refinery and it produces gasoline. Hydroskimming refinery produces a surplus of fuel with unattractive price and demand. Cracking The cracking refinery is, in addition to the above, equipped with vacuum distillation and catalytic cracking. The cracking refinery adds one more level of complexity to the hydroskimming refinery by reducing fuel oil by conversion to light distillates and middle distillates. Coking The coking refinery refers to the one which is equipped to process the vacuum residue into high value products using the Delayed Coking Process. The coking refinery adds further complexity to the cracking refinery by high conversion of fuel oil into distillates and petroleum coke. Catalytic Cracking, Coking and other such conversion units are referred to as Msecondary processing units. The Nelson Complexity Index, captures the proportion of the secondary conversion unit capacities relative to the primary distillation or topping capacity. The Nelson Complexity Index typically varies from about 2 for Hydroskimming refineries, to about 5 for the Cracking refineries and over 9 for the Coking refineries. Refineries, with high Nelson Complexity Index have the necessary flexibility in processing a wide variety of crudes and are capable of achieving higher value addition. Reliance's Jamnagar refinery has Catalytic Cracking and Coking as the main secondary processing Units, and has a Nelson Complexity Index of 9.93. This excludes the Aromatics Complex, which is set up under RIL. If the Aromatics Complex is also included for the Jamnagar Refinery then the Nelson Complexity Index is over 14.0. Nelson's Complexity In the Refining Industry, a common index termed as "EDC" - Equivalent Distillation Capacity is defined to calculate the benchmark of manpower requirement. Calculation of EDC is a two-step process. The first step is the multiplication of the capacity of each unit in the refinery with the Nelson's complexity factor and the second is the sum of these products to arrive at the EDC for the refinery in total. Nelson Complexity Index : Nelson Complexity Index is a measure of secondary conversion capacity in comparison to the primary distillation capacity of any refinery. It is an indicator of not only the investment intensity or cost index of the refinery but also the value addition potential of a refinery. The index was developed by Wilbur L Nelson in 1960 to originally quantify the relative costs of the components that constitute the refinery. Nelson assigned a factor of one to the primary distillation unit. All other units are rated in terms of their costs relative to the primary distillation unit also known as the atmospheric distillation unit. Following are the factors for the various Processing Units : Unit Nelson's Complexity Index Older Reports Distillation Capacity Vacuum Distillation Thermal Processes (Categories 1 and 2 - 2.75) (Categories 3 to 5 - 6.00) Coking Catalytic Cracking 6.0 1.0 2.0 1998 Reports 1.0 2.0

5.0

2.75

6.0 6.0

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Catalytic Reforming Catalytic Hydrocracking Catalytic Hydrorefining Alkylation / Polymerization Aromatics / Isomerisation Lubes Asphalt Hydrogen (Mcfd) Oxygenates (MTBE / TAME) Thermal Operations Thermal Cracking Visbreaking Fluid Coking Delayed Coking Others

5.0 6.0 3.0 10.0 15.0 60.0 1.5 1.0 10.0

5.0 6.0 3.0 10.0 15.0 60.0 1.5 1.0 10.0

3.0 2.5 6.0 6.0 6.0

The Nelson Complexity Index method uses only the Refinery Processing Units or the " Inside Battery Limits " ( ISBL ) Units, and does not account for the costs of Offsites and Utilities or the " Outside Battery Limits " ( OSBL ) Costs, such as Land, Storage tanks, terminals, utilities required etc. The Nelson Complexity Index provides insight into refinery complexity, replacement costs and the relative value addition ability and allows different refineries to be ranked. The Nelson Complexity Index for the Reliance refinery is 9.93 and for the overall Jamnagar Complex is over 14.0. Essentially a high Nelson Complexity Index as the Reliance Jamnagar Refinery is, points to the following characteristics . y Ability to process inferior quality crude or heavy sour crudes. For example the Jamnagar Refinery generally processes crudes which are 5?API lower and 0.7wt% sulphur higher compared to Indian peers. Ability to have a superior refinery product slate comprising of high percentage of LPG, light distillates and middle distillates and low percentage of heavies and fuel oil. For example the Jamnagar Refinery produces no fuel oil which is unmatched by the Indian peers. Ability to make high quality refinery products such as Bharat 3 gasoline or diesel. For example the Jamnagar Refinery can make Euro 3 grade gasoline unmatched by the Indian peers.

Business Opportunities You can do business with Reliance in various areas: y y y y y Crude Oil Supply Petroleum Products Trading Shipping - Vessel Chartering Catalysts and Chemicals Supply Technology, Software & Solutions Supply

Crude Oil Supply

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Reliance's refinery at Jamnagar in the state of Gujarat, India, is designed to process a wide variety of crude oils ranging from light to heavy and sweet to sour. An indicative range of properties of crude that can be processed is as follows: y y y Degree API: 18 to 45 with blend window between 27 and 32 Sulphur content: Up to 4.5 % with blend window up to 2.6% Acidity: 0 - 1.5 mg KOH/kg with blend window up to 0.5 mg KOH/kg

The refinery is equipped with world-class port facilities , which can receive crude oils in various types of vessels including Ultra Large & Very Large Crude Carriers, Suezmax and Aframax vessels. You are welcome to contact us for doing business. Petroleum Products Trading Reliance offers a range of petroleum products for exports as well as supply in the Indian market. Petroleum products for export markets: y y y y y y Naphtha (High quality ethylene cracker feedstock and open spec naphtha) Gasoline (various grades meeting international specifications) TAME (an oxygenate) Jet / Aviation Turbine Fuel High Speed Diesel Petroleum coke

Petroleum products for Indian markets: As per the current regulations of the Government of India, Reliance is allowed to sell a limited range of products (referred to as "decontrolled" products) in the Indian market. Various products including the decontrolled products offered for sale in India are: y y y y y y y Propylene (Polymer grade) Naphtha (Ethylene cracker feedstock, Fertilizer feedstock grade and fuel grades) Jet / Aviation Turbine Fuel Kerosene as Linear Alkyl Benzene (LAB) feedstock TAME (an oxygenate for improving anti-knocking properties of gasoline) Granulated sulphur (in bulk) Petroleum coke

Petroleum product imports: Reliance also imports the following petroleum products for feedstock purposes as well as trading: y y y y Naphtha (Full range or high aromatic grades) Kerosene - Methanol Low sulphur waxy residue (LSWR) High sulphur vacuum gas oil (VGO)

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The port facilities, supporting the refinery ensure that the above products can be exported or imported in large parcel sizes for optimum freight economics. The port also has the flexibility to handle smaller parcels if necessary. You are welcome to contact us for doing business. Shipping - Vessel Chartering Crude oil vessels: Reliance sources its principal raw material, viz. Crude oil, in shipments from various parts of the world including the Persian Gulf, the Red Sea, West Africa, the Mediterranean and Latin American countries. Product and chemicals vessels: The petroleum products and chemicals are shipped from Jamnagar port to various parts of the world such as Japan, Taiwan, Korea, Indonesia, Thailand, Malaysia, Singapore, Saudi Arabia, Africa, west European countries, the Latin American countries and North America. Jamnagar's port facilities receive crude oil shipments in varying vessel sizes viz. ULCC/VLCC, Suezmax and Aframax. The vessels to be received at Reliance's port facilities are subject to clearances as per the safety and environmentrelated requirements of the port. It is therefore customary to ascertain the acceptability of the offered vessels on the basis of information to be provided in a questionnaire called " Q 88 ". You are welcome to contact us for doing business. Catalysts and Chemicals Supply Reliance procures a wide variety of catalysts and chemicals to facilitate the refining operation. Catalysts cover the following services: y y y y y y Fluidized Catalytic Cracking (FCC) Hydrodesulphurisation Hydrogen plant Sulphur plant Aromatics manufacturing Mercaptan oxidation (Merox)

Chemicals include: y y y y y y y y y Biocides Anti-oxidants Corrosion inhibitors and anti-scalant Caustic Amine Product improvement multi-functional additives Mercaptans Dyes Cetane improvers

You are welcome to contact us for doing business. Technology, Software & Solutions Supply Reliance reviews and executes profit improvement opportunities and actively pursues technology and software options to do the following:

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y y y

Improve yields Upgrade quality Enhance operating efficiencies

You are welcome to contact us for doing business. Growth through Energy Products Petroleum Refining and retailing is the second link in RIL's drive for growth and global leadership in the core energy and materials value chain. RIL has 1.24 million barrels per day (MBPD) of crude processing capacity, the largest at any single location in the world

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The crude oil demand recovered strongly after a period of contraction in 2009. As a consequence, oil inventories reduced to five-year averages resulting in lowering OPEC spare capacity. Higher oil production also resulted in lower spare capacity and consequently putting upward pressure on prices. Higher demand for light products and higher refining utilisation rates resulted in widening light-heavy differential. The growing gap between demand and oil supply, coupled with strong crude prices, is encouraging OPEC producers to further ramp up production. This is resulting in increased supplies of heavier crudes and further impacting lightheavy differentials. This should cause light-heavy spread to widen, and hence improved complex refining margins. For FY-11, Arab light-heavy differential averaged at $ 3.2/ bbl, an increase of 86% over the previous year. According to IEA, oil demand in 2010 grew to 87.9 MMBPD, up 3.4% in 2010 vis- -vis 2009. It is pertinent to note that demand growth in 2009 was (-)1.3% vis- -vis 2008 and therefore, seen in the context of the change over the last 2 years, growth in 2010 was in excess of 4.5%, the fastest recovery in over a decade. Demand growth in 2010 was driven by non-OECD countries which contributed to an additional growth of 2.2 MMBPD (5.7% on a yearonyear basis) which was 76% of global demand growth. Average crude oil prices ($/bbl) FY 2010-11 High WTI Brent Dubai (Source: Platts) The consumption of middle distillates, the part of the barrel that is most levered to the economic cycle has picked up particularly strongly in recent months, leading to higher global oil demand. Middle distillate product cracks are expected to continue to rise due to strong demand for these products across Asia. Stronger oil demand, delays in new refining capacities in Asia, and widening lightheavy oil price differential going forward provide a further upside to complex refining margins in Asia. Geopolitical unrest in the Middle East/North Africa regions has been a major cause for the oil price increase in early 2011, with increasing focus on potential contagion to major oil exporters beyond Libya. Since the oil price spiked in February 2011, refining margins have strongly recovered and remain higher across all regions, driven by strong diesel margins, with Asian margins close to all-time highs. Refinery outages of around 1.4 MMBPD in Japan have taken away around 350,000 BPD of diesel supply from the domestic market. Prior to the earthquake, Japan's 4.5 MMBPD refining capacity was running at close to 90% with 106.8 116.9 111.6 Low 65.6 67.6 68.2 Average 83.3 86.7 84.2 High 83.5 80.5 81.3 FY 2009-10 Low 45.9 46.5 47.2 Average 70.6 69.6 69.5

24

diesel production of around 1.25 MMBPD. Large Asian export-oriented refiners are likely to shift products to Japan, leading to tightening supply in the European market. Refinery capacity and utilization It is estimated that the net refining capacity addition in 2009 was 2.6 MMBPD and a further 0.5 MMBPD in 2010. Limited capacity addition in 2010, strong demand growth and wider margins have helped utilization rates improve during the year. The average capacity utilization rates in FY-11 for refineries in North America, Europe and Asia were at 83.8%, 77.8% and 83.9% as compared to 81.6%, 76.6% and 83.5% of last year's respectively. With higher global GDP forecasts and higher global oil demand forecasts coupled with minor capacity additions, refining utilisation rates are expected to improve over the next few years. Demand Light distillates Gasoline was a weak link in the otherwise improving refining business. For most of the year, high inventories kept gasoline markets in USA amply supplied. Structural issues, like tightening fuel standards and rising share of ethanol, are likely to impact the gasoline cracks in the medium term. Recent improvement in overall economic condition has had its positive impact. Gasoline inventory draws are presently higher at 1.9% and below the 5-year average and 5.3% below the year-ago level. On a year-on-year basis, the DOE of USA estimates gasoline demand is up 1.1% as Americans drove 0.2% more in early 2011 compared to the year-ago period. Gasoline consumption in non-OECD is underpinned by rising incomes, younger demographics and surging car sales of China, India, Brazil and other emerging economies. Middle distillates These have been the harbinger of the improvement seen in refining margins during the year. Better demand and improving prospects have resulted in diesel cracks at early 2008 levels. It is pertinent to note that the refining industry has actually had to operate at close to 2008 peak diesel yields in 2H FY-11 in order to meet demand. Given the loss of refinery capacity in Japan, growing industrial demand for diesel generators in the country and ongoing diesel demand from emerging market economies, the supply cushion is clearly smaller than it otherwise would have been. Middle distillate stocks are at a virtually identical level to those seen at the beginning of 2007, six months ahead of the start of the rally that culminated with diesel cracks close to $50/bbl. With crude oil stocks once again tight, and concern rising as to whether OPEC supplies will be sufficient to meet peak summer demand, the conditions for a rapid distillate stock draw - similar to the one seen in 2007 - are highly possible. A much faster and stronger economic growth in non-OECD has resulted in higher demand for diesel. Supporting factors for Asian diesel market were strong demand for low sulphur diesel from India. China suffered from diesel shortage in the second half of the year, prompting increased import requirements. Demand for Petroleum Products As per IEA estimates in April 2010, the fall in OECD demand was largely attributed to Europe and North America. Oil demand in OECD Europe fell by 5.2% to 14.5 MBPD whereas demand in North America fell by 3.7% to 23.3 MBPD in 2009. On the contrary, demand in non-OECD markets remained resilient with Asia, including China and India growing at 5.1% to 18.5 MBPD. Demand in other non-OECD markets including Latin America, Middle East and Africa remained stable to marginally positive by 1.2% at 16.4 MBPD. As per IEA estimates, world oil demand in 2010 is expected to rise to 86.60 MBPD, an increase of about 1.67 MBPD over 2009. Demand growth in non-OECD markets is expected to remain robust and is expected to rise by 1.78 MBPD, an increase of 2% to 41.24 MBPD. Asia, Middle East and South America are expected to account for over 83% of global demand growth. Increased business, personal travel and global trade led to demand growth and better aviation fuel margins. Changing trends Petroleum products demand growth, product mix redistribution and progressively stricter quality requirements will continue to reshape the refining industry. The trend is towards lighter and lower sulphur refined for petroleum products

25

transportation fuels. All regions of the world, except Africa, will reduce sulphur in gasoline to below average 150 ppm by 2020. For diesel, all regions except Africa will have sulphur content below an average content of 50 ppm. Changing product specifications for sulphur (parts per million) Equally important is the growth in demand for gasoline in the non-OECD markets, large parts of which are witnessing significant economic development and increase in personal vehicle growth in Asian, Latin American and Middle Eastern countries. There is strong correlation between the non-OECD gasoline demand growth and their GDP. As a result, worldwide gasoline consumption could increase by an average of 1.6% annually over the next 2 years. Country Gasoline US EU Brazil China India Gasoil US EU Brazil China India Russia 15 10 500 - 50 350 - 50 500 - 50 2000 - 150 15 10 50 350 - 10 50 - 10 50 - 10 15 10 10 50 - 10 50 - 10 10 30 10 <1000 150 - 50 500 - 50 30 10 <1000 150 - 10 50 - 10 30 10 10 50 - 10 50 - 10 2010 2015 2020

The continuing global trend of tightening product specification presents new trade and margin opportunities for large modern refiners like Reliance, which has the ability to produce large quantities of ultra-clean fuels. Demand for petroleum products in India The demand for petroleum products in India increased from 130.5 MMT to 134.4 MMT, reflecting a growth of 2.9% in FY-11. The Indian refining capacity increased to 184.1 MMT from 179.9 MMT. Details of product-wise demand and growth during the last year are as follows: (In KT) Diesel Gasoline ATF LPG Kerosene Naphtha Others Total (incl. others) FY 2010-11 59,869 14,200 5,078 13,679 8,928 8,951 23,674 134,378 FY 2009-10 56,148 12,818 4,627 12,516 9,304 9,014 26,131 130,559 Growth (%) 6.6% 10.8% 9.7% 9.3% -4.0% -0.7% -9.4% 2.9%

An increase in per capita income led to higher penetration of personal vehicles (cars and two-wheelers) which resulted in double digit growth in gasoline demand. Higher economic activity resulted in higher diesel demand as well as increased air travel. Increase in availability of natural gas resulted in reducing demand for naphtha while improved distribution of LPG and lower domestic production impacted sales of kerosene. Gross refining margins A robust demand in Asia led to improvement in key product cracks virtually throughout the year. A strong growth in personal automobile ownership in developing Asia resulted in healthy gasoline cracks in the region. Middle

26

distillates were the largest contributors to improved refining margins in the region. Economic growth, shortage of diesel in China, particularly in the second half of the year and cold winters, were seen to be the key contributors to the strength seen in diesel cracks. Robust petrochemical demand also meant that for most part of the year, naphtha cracks remained strong. Fuel oil crack was the notable exception and remained in the negative, thus creating a drag to simple refining margins. This was mainly on account of abundant supply as US became a major exporter to key Asian markets. Singapore ($/bbl) Gasoline Jet-kero Diesel Naphtha FO (Source: Platts) Singapore margins benefit from growth in demand fuelled by emerging Asian economies. Widening of light-heavy differentials added to the widening complex margins in the region. Europe was impacted by lacklustre petroleum demand and strong Brent price resulting in higher feedstock prices. Production of Petroleum Products [in Kilo Tonnes (KT)] Gross Refining Margins ($/bbl) RIL Regional benchmarks Singapore (Dubai) US Gulf Coast (Brent) US Gulf Coast (WTI) Rotterdam (Brent) 5.2 1.1 6.4 3.6 3.5 2.7 3.2 3.1 FY 2010-11 8.4 FY 2009-10 6.6 FY-11 8.3 14.8 13.8 0.4 (7.1) FY-10 6.7 7.9 7.3 (0.4) (4.1) FY-11 10.4 15.8 13.2 7.5 (9.3) US FY-10 7.9 6.9 5.1 3.7 (7.0) FY-11 6.8 13.6 14.5 (2.0) (8.9) Europe FY-10 9.2 8.7 9.0 (1.2) (4.8)

For the year under review, RIL's Gross Refining Margin (GRM) was $ 8.4 /bbl, a premium of $ 3.2 /bbl over the Singapore complex margin. Performance review RIL processed 66.6 million tonnes of crude and achieved an average utilization of 107%, which is significantly higher than the average utilization rates for refineries globally. Exports of refined products were at $29.3 billion. This accounted for 38.6 million tonnes of product as compared to 32.8 million tonnes the previous year. GAPCO Reliance has consolidated operations of its GAPCO subsidiaries in East Africa. GAPCO group owns and operates large storage facilities and also has a well-spread retail distribution network. It owns and operates large coastal storage terminals in Dar-e-Salaam (Tanzania), Mombasa (Kenya) and an inland terminal at Kampala (Uganda) and has well-spread depots in East Africa. GAPCO achieved a turnover of $ 1.1 billion for 2010 (January-December) which was 36.2% higher as compared to the previous year. GAPCO's EBITDA for 2010 was $ 29.7 million, an increase of 26.9% on a year-on-year basis while profit before tax increased by 24.5% to $ 19.3 million. It sold 1.6 million kilo litres of petroleum products during 2010, which was 23.6% higher over the previous year. Strategy and outlook Reliance is best positioned to capture top decile margins as a result of processing cheaper, heavier crudes and benefitting from low operating costs. Built in the last decade, the RIL refineries are state-of-the-art and among the most complex refineries in the world. Strategically located on the west coast of India, it benefits from low transportation costs for its feedstock and also from its proximity to the high-growth markets of Asia. From a product slate perspective, the refineries have been designed to produce higher quantities of middle distillate products like diesel and jet-kero and also ultra-clean fuels that provide it the potential for higher refining margins.

27

Annual results in brief


Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Sales

2,48,170.00

1,92,461.00

1,46,328.00

1,39,269.00

1,10,886.00

Operating profit

39,590.00

30,581.00

23,683.00

23,306.00

18,210.00

Interest

2,328.00

1,997.00

1,745.00

1,077.00

1,114.00

Gross profit

38,850.00

31,044.00

23,998.00

23,124.00

17,289.00

EPS (Rs)

61.98

49.65

99.35

133.82

78.25

Annual results in details


Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Other income

3,052.00

2,460.00

2,060.00

895.00

193.00

Stock adjustment

-3,243.00

-3,948.00

-428.00

1,867.00

-970.00

Raw material

1,93,234.00

1,47,919.00

1,02,288.00

90,304.00

77,889.00

Power and fuel

Employee expenses

2,624.00

2,350.00

2,398.00

2,119.00

1,197.00

Excise

4,481.00

5,826.00

5,523.00

Admin and selling expenses

Research and development expenses

Expenses capitalised

Other expenses

15,965.00

15,559.00

13,906.00

15,847.00

9,037.00

Provisions made

Depreciation

13,608.00

10,497.00

5,195.00

4,847.00

4,009.00

Taxation

4,956.00

4,311.00

3,124.00

3,552.00

2,372.00

Net profit / loss

20,286.00

16,236.00

15,637.00

19,458.00

10,908.00

Extra ordinary item

-42.00

4,733.00

Prior year adjustments

Equity capital

3,273.00

3,270.00

1,574.00

1,454.00

1,394.00

Equity dividend rate

Agg.of non-prom. shares (Lacs)

18095.00

18065.00

7482.00

7069.00

6831.00

Agg.of non promotoHolding (%)

55.28

55.24

47.54

48.63

49.02

OPM (%)

15.95

15.89

16.18

16.73

16.42

GPM (%)

15.46

15.93

16.17

16.50

15.56

28

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

NPM (%)

8.07

8.33

10.54

13.88

9.82

Capital structure
From Year To Year Class Of Share Authorized Capital Issued Capital Paid Up Shares (Nos) Paid Up Face Value Paid Up Capital

2010

2011

Equity Share

5,000.00

3,273.37

3273374008

10

3,273.37

2009

2010

Equity Share

5,000.00

3,270.37

3270374360

10

3,270.37

2008

2009

Equity Share

2,500.00

1,573.80

1573798233

10

1,573.80

2007

2008

Equity Share

2,500.00

1,453.65

1453648601

10

1,453.65

2006

2007

Equity Share

2,500.00

1,393.51

1393508041

10

1,393.51

2005

2006

Equity Share

2,500.00

1,393.51

1393508041

10

1,393.51

2004

2005

Equity Share

2,500.00

1,393.51

1393508041

10

1,393.51

2003

2004

Equity Share

2,500.00

1,396.38

1396377536

10

1,396.38

2002

2003

Equity Share

2,500.00

1,396.38

1396377536

10

1,396.38

2001

2002

Equity Share

1,200.00

1,053.76

1053757027

10

1,053.76

2000

2001

Equity Share

1,200.00

1,053.76

1053757027

10

1,053.76

1999

2000

Equity Share

1,200.00

1,053.76

1053757027

10

1,053.76

1998

1999

Equity Share

1,200.00

933.75

933749403

10

933.75

1997

1998

Equity Share

1,200.00

933.75

933749403

10

933.75

1996

1997

Equity Share

550.00

460.37

460369802

10

460.37

1995

1996

Equity Share

550.00

460.37

460369802

10

460.37

1994

1995

Equity Share

550.00

460.37

460361894

10

460.36

1993

1994

Equity Share

350.00

319.95

319945057

10

319.95

1992

1993

Equity Share

350.00

245.49

245481348

10

245.48

1991

1992

Equity Share

200.00

152.15

152140973

10

152.14

1987

1988

Equity Share

200.00

152.15

152146493

10

152.15

1984

1985

Equity Share

75.00

51.61

51609318

10

51.61

1983

1984

Equity Share

50.00

36.15

36151310

10

36.15

1982

1983

Equity Share

50.00

18.59

18594569

10

18.59

1981

1982

Equity Share

19.00

16.67

16673754

10

16.67

1980

1981

Equity Share

18.00

12.06

12062291

10

12.06

29

From Year

To Year

Class Of Share

Authorized Capital

Issued Capital

Paid Up Shares (Nos)

Paid Up Face Value

Paid Up Capital

1979

1980

Equity Share

18.00

7.54

7538932

10

7.54

1977

1979

Equity Share

8.00

5.95

5951100

10

5.95

1975

1977

Equity Share

8.00

5.95

5951100

10

5.95

1973

1974

Equity Share

3.00

1100

10

Share holding
Share holding pattern as on : 30/09/2011 30/06/2011 31/03/2011

Face value

10.00

10.00

10.00

No. Of Shares

% Holding

No. Of Shares

% Holding

No. Of Shares

% Holding

Promoter's holding

Indian Promoters

1463923695

44.71

1463923695

44.72

1463923695

44.72

Sub total

1463923695

44.71

1463923695

44.72

1463923695

44.72

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance

267849214

8.18

266855146

8.15

265076350

8.10

FII's

567131931

17.32

568723600

17.37

579259479

17.70

Sub total

926247778

28.29

918365064

28.05

929068675

28.38

Other investors

Private Corporate Bodies

162089184

4.95

159298436

4.87

320156455

9.78

NRI's/OCB's/Foreign Others

23996794

0.73

23946758

0.73

23962514

0.73

GDR/ADR

115418542

3.52

123904856

3.78

121967740

3.73

Govt

3201569

0.10

3202389

0.10

3204229

0.10

Others

174446785

5.33

174021782

5.32

2944927

0.09

Sub total

479152874

14.63

484374221

14.80

472235865

14.43

General public

405078119

12.37

407148648

12.44

408145773

12.47

Grand total

3274402466

100.00

3273811628

100.00

3273374008

100.00

Balance sheet
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Sources of funds
Owner's fund

30

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Equity share capital

3,273.37

3,270.37

1,573.53

1,453.39

1,393.21

Share application money

69.25

1,682.40

60.14

Preference share capital

Reserves & surplus

1,42,799.95

1,25,095.97

1,12,945.44

77,441.55

59,861.81

Loan funds
Secured loans 10,571.21 11,670.50 10,697.92 6,600.17 9,569.12

Unsecured loans

56,825.47

50,824.19

63,206.56

29,879.51

18,256.61

Total

2,13,470.00

1,90,861.03

1,88,492.70

1,17,057.02

89,140.89

Uses of funds
Fixed assets

Gross block

2,21,251.97

2,15,864.71

1,49,628.70

1,04,229.10

99,532.77

Less : revaluation reserve

5,467.00

8,804.27

11,784.75

871.26

2,651.97

Less : accumulated depreciation

78,545.50

62,604.82

49,285.64

42,345.47

35,872.31

Net block

1,37,239.47

1,44,455.62

88,558.31

61,012.37

61,008.49

Capital work-in-progress

12,819.56

12,138.82

69,043.83

23,005.84

7,528.13

Investments

33,019.27

19,255.35

20,268.18

20,516.11

16,251.34

Net current assets


Current assets, loans & advances 96,355.05 66,595.32 56,298.09 44,743.86 30,210.99

Less : current liabilities & provisions

65,963.35

51,584.08

45,675.71

32,221.16

25,858.06

Total net current assets

30,391.70

15,011.24

10,622.38

12,522.70

4,352.93

Miscellaneous expenses not written

Total

2,13,470.00

1,90,861.03

1,88,492.70

1,17,057.02

89,140.89

Notes:
Book value of unquoted investments 22,377.26 15,563.83 18,927.65 12,746.75 9,438.20

Market value of quoted investments

15,839.31

8,248.22

2,930.63

53,126.09

24,454.46

Contingent liabilities

41,825.13

25,531.21

36,432.69

37,157.61

46,767.18

Number of equity sharesoutstanding (Lacs)

32733.74

32703.74

15737.98

14536.49

13935.08

Profit loss account


Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Operating income

ncome
2,48,136.06 1,92,091.87 1,41,959.00 1,33,805.78 1,11,699.03

31

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Expenses
Material consumed 1,94,833.16 1,49,741.12 1,08,856.78 1,00,699.30 80,137.05

Manufacturing expenses

5,170.51

4,860.38

4,518.96

2,768.03

3,373.86

Personnel expenses

2,621.59

2,330.82

2,397.50

2,119.33

2,094.09

Selling expenses

5,353.10

4,123.77

3,095.27

3,229.59

3,661.45

Adminstrative expenses

2,355.25

2,284.63

2,203.75

2,732.47

2,137.88

Expenses capitalised

-30.26

-1,217.92

-3,265.65

-175.46

-111.21

Cost of sales

2,10,303.35

1,62,122.80

1,17,806.61

1,11,373.26

91,293.12

Operating profit

37,832.71

29,969.07

24,152.39

22,432.52

20,405.91

Other recurring income

2,687.98

2,193.13

1,713.38

772.17

457.00

Adjusted PBDIT

40,520.69

32,162.20

25,865.77

23,204.69

20,862.91

Financial expenses

2,328.30

1,999.95

1,774.47

1,162.90

1,298.90

Depreciation

13,607.58

10,496.53

5,195.29

4,847.14

4,815.15

Other write offs

Adjusted PBT

24,584.81

19,665.72

18,896.01

17,194.65

14,748.86

Tax charges

4,969.14

4,324.97

3,137.34

3,559.85

2,585.35

Adjusted PAT

19,615.67

15,340.75

15,758.67

13,634.80

12,163.51

Non recurring items

670.63

894.92

-449.35

5,823.49

-220.11

Other non cash adjustments

48.10

0.51

Reported net profit

20,286.30

16,235.67

15,309.32

19,506.39

11,943.91

Earnigs before appropriation

25,285.75

21,619.86

19,672.61

22,271.76

14,973.00

Equity dividend

2,384.99

2,084.67

1,897.05

1,631.24

1,440.44

Preference dividend

Dividend tax

386.90

346.24

322.40

277.23

202.02

Retained earnings

22,513.86

19,188.95

17,453.16

20,363.29

13,330.54

Cash flow
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Profit before tax

25,242.24

20,547.44

18,433.23

23,010.14

14,520.47

Net cashflow-operating activity

33,280.52

20,490.22

18,245.86

17,426.74

16,870.55

32

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Net cash used in investing activity

-20,332.88

-18,204.50

-24,084.20

-23,955.08

-18,567.01

Netcash used in fin. activity

724.57

-10,999.60

23,732.58

8,973.04

306.08

Net inc/dec in cash and equivlnt

13,672.21

-8,713.88

17,894.24

2,444.70

-1,390.38

Cash and equivalnt begin of year

13,462.65

22,176.53

4,282.29

1,835.35

3,225.73

Cash and equivalnt end of year

27,134.86

13,462.65

22,176.53

4,280.05

1,835.35

Ratios
Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Per share ratios


Adjusted EPS (Rs) 59.92 46.91 100.13 93.80 87.29

Adjusted cash EPS (Rs)

101.50

79.00

133.14

127.14

121.84

Reported EPS (Rs)

61.97

49.64

97.28

133.86

85.71

Reported cash EPS (Rs)

103.54

81.74

130.29

167.20

120.26

Dividend per share

8.00

7.00

13.00

13.00

11.00

Operating profit per share (Rs)

115.58

91.64

153.47

154.32

146.44

Book value (excl rev res) per share (Rs)

446.25

392.51

727.66

542.74

439.57

Book value (incl rev res) per share (Rs.)

462.95

419.43

802.54

548.73

458.61

Net operating income per share (Rs)

758.04

587.37

902.02

920.48

801.57

Free reserves per share (Rs)

431.95

378.21

704.28

520.59

416.90

Profitability ratios
Operating margin (%) 15.24 15.60 17.01 16.76 18.26

Gross profit margin (%)

9.76

10.13

13.35

13.14

13.95

Net profit margin (%)

8.08

8.35

10.65

14.45

10.64

Adjusted cash margin (%)

13.24

13.29

14.58

13.73

15.13

Adjusted return on net worth (%)

13.42

11.95

13.76

17.28

19.85

Reported return on net worth (%)

13.88

12.64

13.36

24.66

19.49

Return on long term funds (%)

13.37

11.71

11.34

17.18

19.83

Leverage ratios
Long term debt / Equity 0.37 0.44 0.59 0.35 0.32

Total debt/equity

0.46

0.48

0.64

0.46

0.45

Owners fund as % of total source

68.42

67.25

60.77

68.38

68.76

33

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Fixed assets turnover ratio

1.58

0.94

1.01

1.29

1.13

Liquidity ratios
Current ratio 1.46 1.29 1.23 1.39 1.17

Current ratio (inc. st loans)

1.22

1.11

1.08

1.01

0.77

Quick ratio

1.01

0.76

0.90

0.93

0.68

Inventory turnover ratio

9.59

8.29

12.92

10.57

10.65

Payout ratios
Dividend payout ratio (net profit) 13.66 14.97 14.49 9.80 13.75

Dividend payout ratio (cash profit)

8.17

9.09

10.82

7.85

9.80

Earning retention ratio

85.87

84.16

85.92

86.01

86.50

Cash earnings retention ratio

91.66

90.60

89.41

89.68

90.33

Coverage ratios
Adjusted cash flow time total debt 2.03 2.42 3.53 1.97 1.64

Financial charges coverage ratio

17.40

16.08

14.58

19.95

16.06

Fin. charges cov.ratio (post tax)

15.56

14.37

12.56

21.90

13.90

Component ratios
Material cost component (% earnings) 79.82 80.00 76.98 73.86 72.32

Selling cost Component

2.15

2.14

2.18

2.41

3.27

Exports as percent of total sales

56.64

53.46

61.22

56.80

52.40

Import comp. in raw mat. consumed

91.71

95.39

95.74

93.96

94.04

Long term assets / total Assets

0.55

0.71

0.74

0.69

0.73

Bonus component in equity capital (%)

64.41

64.47

30.61

33.14

34.57

34