Project

A Report on the Study of “RELIANCE INDUSTRIES LIMITED, JAMNAGAR”

Submitted to the MAHATMA GANDHI UNIVERSITY In partial fulfillment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION Under the guidance of STELLA MARY

By JUSTIN ALIAS

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CERTIFICATE

This is to certify that the project report entitled “THE STUDY OF RELIANCE INDUSTRIES LIMTED is a bonafide record submitted by JUSTIN ALIAS, in partial fulfilment of the award of the Degree of MASTER OF BUSINESS ADMINISTRATION during the academic years 2012-2014.

Date: Director
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CERTIFICATE

This is to certify that the project entitled “THE STUDY ON RELIANCE INDUSTRIES LIMITED” has been successfully completed by Mr.JUSTIN ALIAS, in partial fulfillment of the requirements for the award of degree of Master of Business Administration, under my guidance during the academic year 2012-2014.

Date: Internal Faculty Guide

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SCMS School of Technology and Management, Aluva, Cochin, Kerala – 683106

DECLARATION I, the undersigned, hereby declare that this project organisational study report has been written and submitted under the guidance of Ms Stella Mary and is my original work. The empirical findings in the report are based on Information collected by me and not copied from elsewhere. I understand that detection of any such copying is liable to be punished in any way the School deems fit.

Date:

Justin Alias
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Contents Chapter number Title Page number ACKNOWLEDGEMENT EXECUTIVE SUMMARY LIST OF FIGURES I INTRODUCTION An Introduction to the study Scope of the study Objective of the study Methodology Limitations of the study II BUSINESS ENVIRONMENTAL ANALYSIS Industry profile Global scenario Indian scenario Competitor analysis III ORGANIZATION PROFILE Background and history Company manifesto vision, mission and core values Awards and Recognitions 3 1 2

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Products of the company IV FUNCTIONAL ANALYSIS Organization structure Human Resource Department Financial analysis HSEF Marketing and Distribution

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CONCLUSION Bibliography

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ACKNOWLEDGEMENT At the very outset, I would like to thank the ALMIGHTY for showering his blessings and his supernatural grace in abundance upon me, without which this organizational study would not been taken up and completed successfully. I wish to place on record my profound feelings of gratitude to the HR manager of Reliance Industries, Jamnagar Mr Yogesh Patel who grant me permission to do my organizational study. I am grateful to Mr.Hiral Patel my project guide in the company for giving me his valuable assistance at every stage of my study. I wish to express my profound gratitude to our Director Dr. RADHA THEVANNOOR for her over whelming support in my study I express my sincere thanks to Mr.Peter Abraham for his constant guidance and support for the successful completion of the organizational study. I would like to thank all employees of RIL, Jamnagar for their friendly and cooperative approach. I also thank my beloved family members who encouraged me at every stage of my work Finally yet importantly I would like to thank all my friends who helped me in various ways during the study

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EXECUTIVE SUMMARY

The project titled “organisation study” was carried out in RIL, Jamnagar, Gujarat. RJIL is a part of India’s most prestigious Private Sector Company Reliance Industries Limited. The purpose of the study was to understand the working of organisation as a whole, to study about different departments in the organisation, i.e. how they function and the structure of the organisation. I got the opportunity to study different departments in RJIL. We know that Reliance Jamnagar is the largest refinery in the world in terms of both span and productivity. They are the market leader in this sector. The study helped me to understand a lot about the different departments that are present in this facility. This study got me into an entirely new horizon called refining and the various factors affecting the same. As a whole this study helped me to understand the refining industry in its Global and Indian perspectives.

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LIST OF FIGURES

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INTRODUCTION

ABOUT THE STUDY This report is about the organization study that I had done in RELIANCE INDUSTRIES LIMTED, JAMNAGAR as a part of my curriculum. The organization study at RJIL was to understand the functions and duties of different departments of the organization. SCOPE OF THE STUDY The study helps to know about the different departments in RJIL. The study also focuses on its functioning, various rules, and regulations policies etc. followed by each department. The study was undertaken by visiting the Administrative office and the refinery and was done over a period of 24 days. OBJECTIVES OF THE STUDY  To familiarize the function of the organisation.  To familiarize with the different departments in the organisation, the structure and their Functioning.  The main objective of the study is to know the mission, vision, strength, and weakness of the organization.  To understand how key business processes are carried out in organisations.

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METHODOLOGY The aim was to study different departments in the organization. In order to understand the working of various departments the information was gathered from the employs in the organization. The heads of the different department explained about the departments they are handling and gave me the necessary information that I need. The information was gathered through observation. The information was also gathered from the website and the some records available in the Refinery. LIMITATIONS OF THE STUDY  Time was the major constraint. To understand this huge organization

and its working, the period of 24 days is not at all enough.  All the employees were very busy with their work yet could spare a

few seconds for my study.  There are certain data’s which would reveal a part of the business

secret that the company retains for the competitive edge. Such information was obviously kept undisclosed.

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BUSINESS ENVIRONMENTAL ANALYSIS THE PETROLEUM INDUSTRY The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum (oil) is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category. Petroleum is vital to many industries, and is of importance to the maintenance of industrial civilization in its current configuration, and thus is a critical concern for many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from as low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world consumes 30 billion barrels (4.8 km³) of oil per year, with developed nations being the largest consumers. The United States consumed 25% of the oil produced in 2007.The production, distribution, refining, and retailing of petroleum taken as a whole represents the world's largest industry in terms of dollar value.

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INDUSTRY STRUCTURE
    

Upstream (exploration, development and production of crude oil) Downstream (oil tankers, refiners, retailers and consumers) Pipeline Marine Service and supply

INDIAN SCENARIO

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India is the fourth largest energy consumer in the world after the United States, China, and Russia. Despite having large coal reserves and a healthy growth in natural gas production over the past two decades, India remains very dependent on imported crude oil. India was the fourth largest consumer of oil and petroleum products in the world in 2011, after the United States, China, and Japan. The country depends heavily on imported crude oil, mostly from the Middle East.

The Ministry of Petroleum and Natural Gas (MOPNG) regulates the entire value chain of the oil sector, including exploration and production (E&P), refining, supply, and marketing. The ministry releases five-year plans that serve as rough guidelines to the energy sector. Under the MOPNG, the Directorate General of Hydrocarbons regulates the upstream side of the oil
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sector, as well as coal bed methane (CBM) projects. Another sub-ministry, the Petroleum and Natural Gas Regulatory Board (PNGRB), acts as a downstream regulator, including petroleum product sales and distribution. Competition in the oil sector is now relatively open, particularly when it comes to the upstream market. On the one hand, two state-owned companies, the Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL), control the majority of production and refining activity in India. On the other hand, the government has slowly reduced ownership in ONGC in an effort to raise revenue, and several private companies have emerged as important players in the last decade. Cairn India, a subsidiary of UK Company Cairn Energy, controls 20 percent of India's crude oil reserves through major stakes in the Rajasthan region, and private companies Reliance Industries (RIL) and Essar Oil have become major refiners. Other international oil companies have few stakes in the Indian oil market. India's government promotes the country's refining sector, and India became a net exporter of petroleum products in 2001. India has several world-class refineries in Jamnagar, and the refining industry is largely privately owned. GLOBAL SCENARIO US refiners have seen better margins than in Europe, due to less expensive domestic crude and export opportunities to Latin America. This comparative economic advantage has allowed US refineries to hit a record-high utilization of 92% in July 2012, despite weak domestic demand. Furthermore, exports of diesel and gasoil have surged to a high of around 1.0 mb/d in 2Q12, reconfirming the country’s newfound status as a net exporter of refined products. Since the start of 2H12, margins have experienced a
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recovery worldwide on the back of relatively higher product demand, amid shutdowns, outages, and closures of some refineries in the Atlantic basin. Due to the poor economic performance of the refining industry in recent years, the volume of announced capacity closures has accelerated since the end of last year, amounting to 3 mb/d of capacity by\ end-2012. European refineries have been mainly affected, as well as some refineries on the US East Coast that have not been able to switch to cheaper crudes. Despite the significant volume of closures, these shutdowns are not likely to boost margins, as refining capacity globally is projected to increase by 1.3 mb/d and 1.7 mb/d in 2012 and 2013, respectively. Most of this new capacity will be located in non-OECD countries, particularly Asia and the Middle East. Under-utilized capacity will therefore remain high, estimated at around 3.5 mb/d in 2012 and 4.0 mb/d in 2013, keeping margins under pressure in the coming year. Moreover, the refining industry will have to cope with this capacity under-utilization in an environment of a weak downstream OECD market, as the overall declining trend in demand in many OECD countries is expected to continue. Due to the expected slowdown in the world economy, the global demand growth forecast for 2013 remains at around 0.9 mb/d, almost at the same level as in the current year. This is likely to keep refining margins under pressure due to the expected worsening imbalance between gasoil/gasoline along with the high levels of idle refining capacity. In addition, volumes of non-refined products will continue to grow, limiting the need for light distillates from refineries and potentially leading to even more refinery sales and closures. Returning to the current year, OECD crude oil stocks remain at comfortable levels, especially in the US market. As a result, any product shortage could be
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readily met by higher utilization of idle refinery capacity in a market with abundant crude supplies NAME OF THE REFINERY Jamnagar Refinery (Reliance Industries) Paraguana Refinery Complex (PDVSA) SK Energy Co., Ltd. Ulsan Refinery (SK Energy) GS Caltex Yeosu Refinery (GS Caltex) ExxonMobil Port Arthur Refinery (Motiva Enterprises) Baytown Refinery (ExxonMobil) Ras Tanura Refinery (Saudi Aramco) Garyville Refinery (Marathon Petroleum) S-Oil Ulsan Refinery (S-Oil) Baton Rouge Refinery (ExxonMobil) Ulsan, South Korea Baton Rouge, LA, USA 503000 502000 Garyville, LA 522000 Saudi Arabia 550000 Baytown, TX, USA 572000 Singapore Port Arthur, Texas, USA 605000 600000 Yeosu, South Korea 730000 Paraguana, Falcon, Venezuela Ulsan, South Korea 850000 940000 Jamnagar, Gujarat, India LOCATION BARELLS PER DAY 1,240,000

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COMPETITOR ANALYSIS

On the basis of market cap Company name Reliance IOC BPCL Essar Oil HPCL Market capitalization (in cr) 258735.37 71005.45 29165.60 10297.91 10297.65

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ORGANIZATION PROFILE

BACKGROUND AND HISTORY

"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, singleminded dedication and an unrelenting commitment to his goals.

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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$ 66 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. Under Shri Dhirubhai Ambani's visionary leadership, the Reliance Group emerged as the largest business conglomerate in India, and carved out a distinct place for itself in the global pantheon of corporate giants. The Group's track record of consistent growth is unparalleled in Indian industry and perhaps internationally too. Today, the Group's turnover represents nearly 3 percent of India's GDP. Shri Dhirubhai Ambani was not just firmly rooted in traditional Indian values, but was also the quintessentially modern man, the man of the new millennium. This was clearly reflected in his passion for mega-sized projects, the most advanced technology and the highest level of productivity.
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The corporate philosophy he followed was short, simple and succinct "Think big. Think differently. Think fast. Think ahead. Aim for the best”. He inspired the Reliance team to do better than the best - not only in India but in the world.

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THE JAMNAGAR REFINERY 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 produce 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 tones 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 tons per annum refinery that is fully integrated with downstream petrochemicals units which manufacture naphtha-based aromatics as well as propylene-based polymers.

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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:
   

Crude oil distillation (Atmospheric as well as vacuum distillation) Catalytic cracking (Fluidised Catalytic Cracker) Catalytic reforming (Platforming) Delayed Coking
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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:
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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)
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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:
       

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
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* (Selective Hydrogenation Process / Tertiary Amyl Methyl Ether) All process units in the Jamnagar Manufacturing Division, the largest grassroots 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:
  

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:
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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
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Capability to produce alkylates - a premium gasoline blend

component. It will have the flexibility to maximize production of alkylate by converting butane to isobutene

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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. PolypropylenePlant:

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.

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COMPANY STATEMENTS

 COMPANY VISION

“Through sustainable measures, create value for the nation, enhance quality of life across the entire socio-economic spectrum and help spearhead India as a global leader in the domains where we operate”

 COMPANY MISSION  Create value for all stakeholders  Grow through innovation  Lead in good governance practices  Use sustainability to drive product development and  enhance operational efficiencies  Ensure energy security of the nation  Foster rural prosperity

 COMPANY VALUES “Our growth and success are based on the ten core values of Care, Citizenship, Fairness, Honesty, Integrity, Purposefulness, Respect, Responsibility, Safety and Trust”

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AWARDS AND RECOGNITIONS

Reliance has merited a series of awards and recognitions for excellence for businesses and operations. Leadership • 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.
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•

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

Natural Gas" Award at the OCEANTEX 2010. Corporate Ranking & Ratings: • 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.
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•

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 • 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.
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•

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.

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•

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.

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•

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. Energy and Water Conservation / Efficiency • 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 • Nagpur Manufacturing Division received the 'Innovation Quest 2010

Trophy' instituted by the Indian Institution of Industrial Engineering.
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•

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. Retail • 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.

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•

Reliance Trends received the 'Impactful Retail Design and Visual

Merchandising of the Year Award' at the Asia Retail Congress 2010. Sustainability • Jamnagar Manufacturing Division won the 'Golden Peacock Global

Award for Sustainability for the year 2010'. Human Resource • RIL, Jamnagar won the “golden Peacock award for excellence in HR

Practices” in the year 2012.

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THE PRODUCT FLOW

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THE PLANTS IN THE REFINERY

DTA CRUDE (MOTHER OF REFINERY) FCC (HEART OF REFINERY) HMU (HYDROGEN MANUFACTURING UNIT) SULPHUR COKER(LARGEST IN THE WORLD-8DRUMS) CPP UTILITIES AROMATICS POLYPROPYLENE REFINERY TANK FORMS RRTF MTF

SEZ CRUDE (MOTHER OF REFINERY) FCC (HEART OF REFINERY) HMU (HYDROGEN MANUFACTURING UNIT) SULPHUR COKER(LARGEST IN THE WORLD-8DRUMS) CPP UTILITIES AROMATICS POLYPROPYLENE REFINERY TANK FORMS RRTF MTF ALKYLATION CFP

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THE ORGANOGRAM

JMD Site Leadership

Operations Leadership Team

Tech leadership team

HSEF Leadership Team

Reliability Leadership Team

Operation Leadership Team Plant Production Day manag er Shift Superi ntende nt Marine Shift port capta in Marine mainte nance Planning and scheduling Planni ng team Scheduli ng team

Day port capta in

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Tech leadership team Tech vertica l team Tech area team YADR team Energ y and loss overal l team Bench marki ng team QAQC team Day Shif t

Process automatio n and advance process control

HSEF team Safety Assuranc e Team Area safety assuranc e team Environm ent team Planning team Fire fighting team Health team

Shift fire fighting team

Day fire fighting team

Occupati onal team

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Reliability Leadership team Minor project implement ation team Maintena nce Team Turnaroun d Team Plant maintenanc e team Calibrati on and testing team Area worksho p team Discipline specific workshop team

Discipline wise Inspection and QA team

Reliability assurance team

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THEHUMAN RESOURCE DEPARTMENT RIL's talent base, as on March 31, 2011, stands at 22,661 with an average employee age of 41 years. In FY-11, the Business Transformation initiative created high engagement and excitement amongst the workforce across all levels at RIL. Some key accomplishments on people management front are illustrated below: Learning & Development In FY-11, RIL enhanced delivery over the last year by ensuring 1,589,395 man hours of learning activities at its manufacturing divisions. Going forward, RIL will focus on building specialist skills and multiple cadres in the organisation to support its goals and aspirations. Additionally, several thousand man-hours of developmental intervention was undertaken to train the leadership teams on developing the second-line, compensation and benefits, executive coaching, rewards and recognition programs and interviewing & selection. Six Sigma deployments in FY-11 were focused on improving process capability & reliability issues as per the needs of individual manufacturing sites. A total of 85 projects were executed leading to financial benefit of Rs.26Crore for the year 2010-11. As a part of Six Sigma deployment process, 9 Reliance Certified Black Belts Wave 1 (RCBB-1) are working across manufacturing divisions and have, in turn, developed 305 Six Sigma Green Belts in 2009-11. Total project execution by this team led by RCBB-1 for a span of two years is 157 leading to financial benefit of Rs.69 Crore. Currently, 19 BMGI/ASQ certified Black belts are working in different sites. Based on the effective deployment of Six Sigma methodology by first wave, new batch for Reliance Certified Black Belt Wave 2 (RCBB-2) has been launched in January, 2011 for which 11 employees have been selected from manufacturing divisions.

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In all 354 Black Belts & Green Belts are associated with Six Sigma projects at different sites. For the success of various Six Sigma projects, 1892 team members and supervisory personnel are providing active support. As a part of standardization of training & development of people with validation of their skill level, web based examination module has been developed for certification of Six Sigma Green Belts. In FY-11, eight employees have been certified as Reliance Certified Green Belt (RCGB). Compensation & Branding FY-11, saw a significant change in the Company's compensation & banding management process. On the variable pay front, efforts are afoot to move towards an accountability and responsibility driven variable pay programs designed uniquely for various levels. Talent Acquisition The belief in its people has been the foundation and corner stone of RIL's growth story. It was the youth in their 20s & 30s who brought RIL to this pedestal over the last 3 decades and going forward the intent is to pass the baton on to young leaders over the next 2 to 3 years, to further propel this success story for the next 3 decades. Towards this end there has been a significant endeavor in re-enforcing the existing talent base of 22,661. RIL's campus hiring programme from the engineering, finance and management institutes has been far more robust, with wider coverage to ensure higher caliber as well diversity. RIL has launched a specially tailored programme "Reliance Accelerated Leadership Programme", in order to hire high caliber young talent into the Company and build a talent pipeline for the future. HR Transformation RIL is focused on building what would be the best "To Be" Organisation over the next 18 to 24 months. In order to achieve this objective, RIL focused on following initiatives:
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• People: Energising and engaging the existing work force, building a pipeline for the future and creating an exciting work place. • HR Processes: To ensure that RIL continues to have the world's best practice and processes, existing processes are being reengineered and new processes are being introduced. • Policies: The focus in FY-11 was to make the policies employee friendly keeping in view employee specific needs. The HR policies are being reviewed and benchmarked with world class organisations. • HR Shared Service Centre: The Centre was established last year to ensure efficient and effective delivery of HR services to RIL employees.

Recruitment/Hiring
Introduction: Reliance industries and associated companies have new multiple businesses/sites spread across the country the current recruitment process is fairly decentralized with business/sites HR defining the organization structure, roles and key requests and sector HR completing the recruitment cycle. The company always endeavors to provide growth opportunities to internal talent and hence resort to internal talent scouting for filling the talent gap. External talent scouting has been resorted to only after exhausting with internal sourcing process. Plant/Function specific Organograms are present to identify plant/function based manpower RAG (Requirement/Availability/Gap), to identify the gap and chalk out action plans and close the gaps. Whilst fresh recruitments is limited for existing businesses, the focus will be on talent identification and selection for expansions, replacements for retires and unexplained separations. Hence a centralized recruitment administration has been imperative to achieve the following objectives:
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Define and regularly update companywide talent hunt and selection process with a view to ensure effective timely recruitment, parity, process discipline and standardization. Ensure recruitment based on clearly outlined annual plan (that incorporates manpower needs for expansion projects/ new initiatives, retiree replacements and provision for unplanned separations.) sources do not get subjected to duplication of contract Uniform selection processes so that Reliance criteria and standards are consistently and uniformly applied across all businesses/ sites. Creating a unique Reliance brand image as an “Employer of choice” (preferred employer) by ensuring consistent communication (Create advertising/ communication with a unified and consistent message/ look and impact on the prospective employers) and prevent multiple entry points for applicants. Ensure process compliance whereby people found unsuitable for a specific business/ site/ role go through necessary due diligence, whilst being hired for other business/ sites/ roles Ensure that internal talent utilization opportunities are fully exhausted before external talents are sourced Create a robust TALENT data bank in SAP by industry/ business/ function/ roles for future acquisitions/ hiring. This data bank will be accessible across the company and updated on an on-going basis. Establish wherever possible “bench-marks” for compensation (C to C) for various “Key positions” where hiring is contemplated.

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Functions: a. CRC will primarily plays the role of recruitment administrator and facilitator for Reliance Industries, Associated companies and agency based hiring. To that end, it is responsible for defining, reviewing and continuously updating all recruitment related processes. b. Be responsible for recruitment of direct reporters of sector/ business/ site heads. c. CRC is responsible for coordinating and streamlining companywide mass recruitment process and hiring company cadres like GETs, Management Trainees, etc. d. To manage campus recruitment process and interface with selected institutions. e. Facilitate creation, updating and access to a companywide candidate database in SAP. f. All business/ site HR’s will be responsible for regularly and systematically mapping all major companies in their domain, identifying key personnel, their contact points (Tel/Mobile/e-mail) and CtoC. g. It acts as a sounding board/ guide to sector/ business/ site HR.

h. Conducting compliance audit with respect to correlation between recruitment and organization structure, SAP-HR introduction and process compliance. Activities: a. Respective HR of sector/ business/ site/ location will provide currently approved organization chart to CRC b. Any changes/ modification in the structure will be immediately communicated to CRC.

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c. Before the recruitment process commences, the organization structure will be entered into SAP by the respective sector/ business/ site HR and all recruitment will be done for vacancies existing in SAP. Requisition and approval process: Attrition related: For existing approved positions -these are approved by respective sector/ business/ site heads. newly approved positions: Respective sector/ business/ site/ location heads and HR head will approve after taking into account business priority and availability of internal candidates. The indicative format shown below will be integrated with SAP-HR to ensure recruitment against existing SAP positions.

Methods of recruitment:
The sourcing of the vacancy is identified by the HR department based on the number of vacancies, target of filling these vacancies, nature of vacancies and the availability of personnel against the vacancies. The different sourcing methods are as follows: Internal sourcing a. b. c. d. Promotion Re-appointment Relocation Employee referrals

External sourcing a. Employment exchange
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b. c. d. e.

Advertisement Head hunting Walk in interview Campus

Business or site level vacancies will first be posted within the business/ sites by respective HR with the business/ sites/ sector heads approval. If within seven days the internal search does not yield results, sector/ business/ site HR will certify this to the CRC which will then post it on the company intranet. If even this fails external sources will be used

The process
a. The recruitment process is fairly decentralized with site HR defining the organization structure, roles and key requirements. b. Focus will be on talent identification and selection for expansion, replacement for retirees. c. Mostly focused on internal recruitment for encouraging leadership among employees. d. Reliance maintains 110% strength of manpower hence there is no shortage of manpower at any alarming conditions. e. The RAG analysis serves as an efficient tool by stimulating quick responses at any shortcomings. f. Job rotation is also a part of employees’ selection in Reliance. It takes place as; Inter-site rotation Intra-site rotation

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g. SAP-HR and SAP-HCM play key roles in recruiting and hiring employees. h. In the process of recruitment once the recruitment cell is loaded with applicant pool, they proceed further for screening process, which may include Qualification Years of experience Specialization Job role Extra qualification Level selection i. Recruitment and hiring also includes Telephonic communication Interview call letter Confirmation Accommodation for candidates Travel reimbursement Services for candidates j. Once a candidate has been recruited he will be called for test and interviews at the concerned locations For technical candidates 1. 2. 3. Written test (40% pass marks) Personal interview- it includes rounds as per job roles For managers
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Round 1. Manager Round 2. Sector chief Round 3. HR Round 4. Public relations 4. Tests and interviews are one day process. After a successful completion of all interviews and written tests candidates are sent for medical test. 5. Medical test is a compulsory procedure at RIL (Jamnagar)

For non-technical or HR and Admin candidates Round 1. Written test. Round 2. Group Discussion. Round3. Interviews for shortlisted candidates Round 4. Final interview at Mumbai, Reliance corporation park (RCP) Selected candidates need to fill the application blanks containing records of candidates such as: Age Qualification Reasons for joining Reason for leaving previous job Experience, etc. Medical reports Salaries

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Performance linked incentives (PLI) PLI is computed on a year to year basis of a combination of individual performance business/ functional performance of the area the employee is assigned to, company performance and other parameters. PLI will be payable provided the employee is on the rolls of the company and not serving notice period. PLI is subject to tax.

Benefits • • • • • • • • • • • Leave Medical Annual health check-ups Post- retirement medical scheme On duty accident assistance School admission assistance Self- development Assistance for post-graduate education Mobile phone Employee picnic/ get-together Marriage loans

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Performance management system
1. • PMS process Establish PMS annual calendar

• Align PMS activities with key management process such as strategy, annual planning, & budgeting. • Establish linkage with corporate HR process, e.g., Career development Compensation and benefits Succession planning Learning and development Leadership development • Define stake holders and RACI(responsible, account, consult, inform)

2.

Rating pattern, bonus allocation and payout

• Establish rating guidelines (e.g., mark allocation rules) against targets set in the operation plan • Define bonus allocation and payout calculation principles.

• Determine methodology for normalization (rating/ ranking) of individual scores.

3. •

Governance: Design committees and charters for PMS.

• Implement governance to ensure more objective target setting and evaluation process
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4. •

IT enablement Automatic performance data gathering and reporting aspects

Performance appraisal at RIL: RIL uses a technique called Key Result Areas (KRA) for performance appraisal. KRA are the measures that are linked to business strategy and are cascaded from sector/ business scorecard. Performance framework: • • • Team KRA Individual KRA Individual contribution area (ICA)

This system provides an opportunity to every individual to take up improvement projects in his area of work In this system the ratings are done as objectively as possible. The major factors considered under KRA are: • • • • Volume Quality Target Plant

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Marketing and distribution
At present, the marketing of petroleum products in India is being done by four major public sector oil companies, namely, Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd., and IBP Co. Ltd. The vast expanse of the country and a population of 940 million are served through an elaborate and extensive network of retail distribution by these companies with the help of 16573 retail outlets, 6280 kerosene agencies and 5165 LPG distributorships spread in every nook and corner of the country. An ambitious programme for modernisation of retail outlets to bring them at par with international standards has been taken up by the oil industry. Besides the country's retail network, the full requirements of the industrial units are being met by the marketing companies through direct supplies to them. These industries are operating in important areas like shipping, transport, aviation, power petrochemicals, fertilisers, steel, mining, etc. With the liberalisation and the opening up of the economy, the industrial activity is bound to accelerate and thereby generate additional demand in the industrial and infrastructure sectors. There are elaborate plans for the development of petrochemical units in the near future to generate substantially high demand of naphtha as compared to the present requirement. Many power projects being planned will use liquid fuels like naphtha and fuel oil thus further adding to the demand for naphtha in the country. Successful refinery business operators place marketing as second area of business where value can be maximized.

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Roles and responsibilities 1. • • • • • 2. • • • • • 3. • • • • 4. • • • • Sales Sales to IOC and other companies Co-ordination with IOC Coordination with terminals Transport positioning Interaction with OCC, MOP Industrial marketing Identification of customers Secure purchase orders Monitor credit and collection Supply coordination Accounts reconciliation Export sales Manage export contracts Monitor international trade Collection of payments Claims and disputes Retail marketing Develop marketing plans Dealer selection Site selection Obtain approvals or licenses
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• • • •

Conduct market research Supply coordination Facility maintenance at retail outlets Brand management, advertisement, etc.

Marketing operations a. Planning

Assessment of road and road fleet and ensure availability of decontrolled products as well as coordination with oil industry for availability of controlled products. b. Scheduling

Finalization of monthly distribution plan c. Monitoring

Daily consolidated situation report for complex. All MIS MOG for site and corporate management. d. Dispatches

Schedule daily dispatches by road, rail, pipeline, and sea modes. Positioning of trucks, wagons, tankers. e. • • • • Commercial and contract IOC invoices preparation Follow up, collection and deposits Contract renewal . Collection of customs payments.

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Business information:

PLANNING, ECONOMICS AND SCHEDULING Planning and scheduling functions are core to business optimization process. Roles and responsibilities: 1. Shortlist crudes for selection.

2. Recommend crude blends, refining processing mode, blending schedules, blend qualities. 3. 4. Predict refinery product slates and blend qualities. Analyze crude and corresponding product slates.

5. Collect market intelligent and analyze world/ domestic trends on pricing, crude and product supply, freights, market demands, logistics, etc. 6. Analyze impact of government policies

7. Undertake economic studies, sensitivity analysis, and profitability analysis for various scenarios. 8. 9. 10. Overall in charge for PIMS. Responsible for updating and maintaining PIMS. Prepare strategic plans.
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11. 12. 13. 14. 15.

Identify business opportunities, tariff opportunities. Prepare long/ medium/ short term plans. Prepare business development proposals. Accurately assess the market demands. Prepare MIS for management review.

Planning and technical: Process feed optimization PMS admin. Oil analysis. Product and crude pricing. Forecast and yield analysis. Marketing operations logistics. Planning.

• • • •

Crude import plans. Refinery operation plans. Shutdown and startup plans. Blending.

Economics: • • • Market intelligence and data banks. Business planning Long term planning
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• •

Medium term planning Short term planning

Scheduling: • • • • • Operational scheduling. Developing of operational scheduling and modeling. Conversion of short term plans into daily/ hourly schedule. Logistic scheduling. Development of logistic model.

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THE FINANCIAL ANALYSIS

Standalone Balance Sheet

In Rs.crores Mar '12 12 mths

Mar '11 12 mths

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

3,271.00 3,273.37 3,271.00 3,273.37 0 0 0 0 159,698.00 142,799.95 3,127.00 5,467.00 166,096.00 151,540.32 6,969.00 10,571.21 51,658.00 56,825.47 58,627.00 67,396.68 224,723.00 218,937.00 Mar '12 Mar '11 12 mths 12 mths

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit

209,552.00 91,770.00 117,782.00 4,885.00 54,008.00 35,955.00 18,424.00 889 55,268.00 24,573.00 38,709.00 118,550.00 0

221,251.97 78,545.50 142,706.47 12,819.56 37,651.54 29,825.38 17,441.94 604.57 47,871.89 17,320.60 26,530.29 91,722.78 0 59

Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

66,244.00 4,258.00 70,502.00 48,048.00 0 224,723.00 45,831.00 498.21

61,399.87 4,563.48 65,963.35 25,759.43 0 218,937.00 41,825.13 446.25

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Highlights of this year’s financial performance:

year ended 31st March 2013

(Bbl stands for barrel)

HIGHLIGHTS OF YEAR PERFORMANCE (RIL CONSOLIDATED)

,150 crore ($ 4.8 billion)

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FINANCIAL PERFORMANCE REVIEW AND ANALYSIS  RIL achieved a turnover for the year ended 31st March 2013 of ` 371,119 crore ($ 68.4 billion), an increase of 9.2% on a year-on-year (Y-o-Y) basis. The Refining business revenues increased by 11.6%, Petrochemicals by 9.3% while Oil & Gas revenues decreased by 35.2% on account of lower production. Higher prices accounted for 11.0% growth in revenue which was partly offset by the decrease in volumes by 1.8%. Exports were higher by 15.0% at ` 239,226 crore ($ 44.1 billion) as against ` 208,042 crore in FY 2011-12.  Higher crude oil prices resulted in consumption of raw materials increasing by 11.4% to ` 306,127 crore ($ 56.4 billion) on a Y-o-Y basis.  Employee costs were at ` 3,354 crore ($ 618 million) for the year ended 31st March 2013 as against ` 2,862 crore in the previous year.  Other expenditure increased by 26.6% from ` 18,040 crore to ` 22,844 crore ($ 4.2 billion) primarily due to higher expenses on account of power & fuel, selling & distribution, sales tax, professional fees and repairs.  Operating profit before other income and depreciation decreased by 8.4% from ` 33,619 crore to ` 30,787 crore ($ 5.7 billion) due to reduction in oil & gas and petrochemicals earnings, partially offset by higher operating profit from refining. Net operating margin was lower at 8.5% as compared to 10.2% on a Y-o-Y basis due to lower production of oil & gas and weaker margins in petrochemicals business.  Other income was higher at ` 7,998 crore ($ 1.5 billion) as against ` 6,192 crore primarily due to an increase in cash flows from operations that were deployed in bank deposits, mutual funds and Government securities / bonds.  Depreciation (including depletion and amortization) was lower by 16.9% at ` 9,465 crore ($ 1.7 billion) against ` 11,394 crore in FY 2011-12. This was primarily due to lower production of oil & gas.  Interest cost was higher at ` 3,036 crore ($ 559 million) as against ` 2,667 crore in FY 2011-12 principally due to higher foreign currency
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   







borrowings and depreciation of the Indian rupee. This resulted in gross interest cost being higher at ` 3,421 crore ($ 630 million) as against ` 3,097 crore in FY2011-12. Interest capitalized was lower at ` 385 crore ($ 71 million) as against ` 430 crore. Profit after tax was ` 21,003 crore ($ 3.9 billion) as against ` 20,040 crore on a Y-o-Y basis. Basic earnings per share (EPS) for the year ended 31st March 2013 was ` 64.8 ($ 1.2) against ` 61.2 for the previous year. Outstanding debt as on 31st March 2013 was ` 72,427 crore ($ 13.3 billion) compared to ` 68,259 crore as on 31st March 2012. RIL had cash and cash equivalents of ` 82,975 crore ($ 15.3 billion). These were in bank deposits, mutual funds and Government securities / bonds. RIL is debt free on a net basis as at 31st March 2013. The net addition to fixed assets for the year ended 31st March 2013 was ` 19,041 crore ($ 3.5 billion) including addition of ` 1,942 crore on amalgamation of Reliance Jamnagar Infrastructure Limited. Capital expenditure was principally on account of ongoing expansions projects at Jamnagar, Dahej, Silvassa and Hazira. During the year, RIL has bought and extinguished 4,25,82,849 equity shares for a sum of ` 3,044 crore. The Company has bought and extinguished 4,62,46,280 equity shares at a total cost of ` 3,366 crore under the buy- back scheme. RIL’s consolidated turnover for the year ended 31st March 2013 was ` 397,062 crore ($ 73.1 billion), an increase of 10.8% on a year-on-year basis. Profit after tax was ` 20,879 crore ($ 3.8 billion), an increase of 5.9% as against ` 19,724 crore for the previous year. Basic earnings per share (EPS) for the year ended 31st March 2013 was 70.7 ($ 1.3) against ` 66.2 in the previous year.

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Oil and Gas (Exploration and Production) Business
In Rs. crores Segment Revenue Segment EBIT EBIT margin 4Q FY13 1597 460 28.8% 3Q FY13 1921 590 30.7% 4Q FY12 2608 951 36.5% %change w.r.t FY 12 (38.8%) (51.6%) FY 13 8280 2887 34.9% FY 12 12898 5250 40.7% %change w.r.t FY 12 (35.8%) (45.0%)

Ratio Analysis:
Mar '12 Mar '11

Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%)

10 -116.89 1,203.64 536.59 65.16 9.71 6.17 6.25 8.46 8.46 5.43 5.43 10.83 11.9 11.06 556.3 568.85 11.64

10 -127.49 891.36 480.1 65.11 14.3 8.92 8.98 12.24 12.24 7.2 7.2 11.14 13.03 12.6 496.46 516.88 11.84
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Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times

1.3 0.98 0.5 0.39 9.3 0.5 13.59 12.1 8.54 21.97 8.54 2.01 2.05 1.46 24 14.22 48.04 85.06 -1.68 -14.91 9.15 83.96 90.44 2.69

1.23 0.92 0.57 0.48 10.78 0.57 16.57 14.84 7.79 20.62 7.79 1.53 1.47 1.19 26.12 16.55 46.33 80.03 -2.21 -14.36 8.29 85.15 91.55 2.57

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CONCLUSION

The purpose of organisation study was to understand and study the different departments in an organisation. So this organisation study helped me to know the functioning of different departments in RIL, Jamnagar. It helped me in understanding how an organisation works. It gave me an opportunity to know how a Refinery works, the rules, regulations and guidelines they follow.

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BIBLIOGRAPHY
www.ril.com www.eai.com The Global Refinery Outlook 2012 www.moneycontrol.com

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