Corporate Governance Report - Reliance Industries Limited
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Corporate Overview Management Review Governance 180-273 Financial Statements Notice 196 Reliance Industries Limited • Making Life Better. For Everyone. Corporate Governance Report K. Sethuraman “Good governance, keeping the values and ethics on top is DNA of Reliance. Our commitment to Corporate Governance goes beyond compliance with regulatory requirements. We have implemented several best governance practices. Our aspiration is to be the most admired, innovative and value generating organisation for all our stakeholders and our governance system is embedded with it.” Statement on Company’s Philosophy on Code “Between my past, the present and the of Governance future, there is one common factor: Corporate Governance encompasses a set of systems Relationship and Trust. This is the DQGSUDFWLFHVWRHQVXUHWKDWWKH&RPSDQ\pVDƪDLUVDUH foundation of our growth.” being managed in a manner which ensures accountability, transparency and fairness in all transactions in the widest Founder Chairman sense. The objective is to meet stakeholders’ aspirations Shri Dhirubhai H. Ambani and societal expectations. Good governance practices stem from the dynamic culture and positive mindset of the This report is prepared in accordance with the provisions organisation. We are committed to meet the aspirations of of the Securities and Exchange Board of India (Listing all our stakeholders. This is demonstrated in shareholder Obligations and Disclosure Requirements) Regulations, returns, high credit ratings, awards & recognitions, 2015 (‘Listing Regulations’), and the report contains the governance processes and an entrepreneurial performance details of Corporate Governance systems and processes at focused work environment. Additionally, our customers have Reliance Industries Limited (RIL). EHQHƬWHGIURPKLJKTXDOLW\SURGXFWVGHOLYHUHGDWH[WUHPHO\ competitive prices. At RIL, Corporate Governance is all about maintaining a valuable relationship and trust with all stakeholders. We The essence of Corporate Governance lies in promoting consider stakeholders as partners in our success, and we and maintaining integrity, transparency and accountability remain committed to maximising stakeholders’ value, be it in the management’s higher echelons. The demands of shareholders, employees, suppliers, customers, investors, Corporate Governance require professionals to raise their communities or policy makers. This approach to value competence and capability levels to meet the expectations creation emanates from our belief that sound governance LQPDQDJLQJWKHHQWHUSULVHDQGLWVUHVRXUFHVHƪHFWLYHO\ system, based on relationship and trust, is integral to with the highest standards of ethics. It has thus become FUHDWLQJHQGXULQJYDOXHIRUDOO:HKDYHDGHƬQHGSROLF\ crucial to foster and sustain a culture that integrates all framework for ethical conduct of businesses. We believe that components of good governance by carefully balancing any business conduct can be ethical only when it rests on the complex inter-relationship among the Board of the six core values viz. Customer Value, Ownership Mindset, Directors, Board Committees, Finance, Compliance and Respect, Integrity, One Team and Excellence. Assurance teams, Auditors and the senior management. 2XUHPSOR\HHVDWLVIDFWLRQLVUHƮHFWHGLQWKHVWDELOLW\RIRXU
Integrated Annual Report 2017–18 Corporate Governance Report 197 senior management, low attrition across various levels and We believe, Corporate Governance is not just a destination, substantially higher productivity. Above all, we feel honoured but a journey to constantly improve sustainable value to be integral to India’s social development. Details of several creation. It is an upward-moving target that we collectively such initiatives are available in the Report on Corporate strive towards achieving. Our multiple initiatives towards Social Responsibility. maintaining the highest standards of governance are detailed in this report. At RIL, we believe that as we move closer towards our aspirations of being a global corporation, our Corporate $SSURSULDWH*RYHUQDQFH6WUXFWXUHZLWKGHƬQHG Governance standards must be globally benchmarked. Roles and Responsibilities Therefore, we have institutionalised the right building The Company has put in place an internal governance blocks for future growth. The building blocks will ensure VWUXFWXUHZLWKGHƬQHGUROHVDQGUHVSRQVLELOLWLHVRIHYHU\ that we achieve our ambition in a prudent and sustainable constituent of the system. The Company’s shareholders manner. RIL not only adheres to the prescribed Corporate appoint the Board of Directors, which in turn governs the Governance practices as per the Listing Regulations, but is Company. The Board has established seven Committees also committed to sound Corporate Governance principles WRGLVFKDUJHLWVUHVSRQVLELOLWLHVLQDQHƪHFWLYHPDQQHU7KH and practices. It constantly strives to adopt emerging best Chairman and Managing Director (CMD) provides overall practices being followed worldwide. It is our endeavour to direction and guidance to the Board. In the operations achieve higher standards and provide oversight and guidance and functioning of the Company, the CMD is assisted to the management in strategy implementation, risk by four Executive Directors and a core group of senior PDQDJHPHQWDQGIXOƬOPHQWRIVWDWHGJRDOVDQGREMHFWLYHV level executives. The CMD is responsible for corporate strategy, brand equity, planning, external contacts and all Over the years, we have strengthened governance practices. management matters. 7KHVHSUDFWLFHVGHƬQHWKHZD\EXVLQHVVLVFRQGXFWHGDQG value is generated. Stakeholders’ interests are taken into The Chairman of the Board (‘the Chairman’) is the leader of account, before making any business decision. RIL has the the Board. The Chairman is responsible for fostering and distinction of consistently rewarding its shareholders for promoting the integrity of the Board while nurturing a culture IRXUHYHQWIXOGHFDGHVIURPLWVƬUVW,326LQFHWKHQ5,/KDV where the Board works harmoniously for the long-term moved from one big idea to another and these milestones EHQHƬWRIWKH&RPSDQ\DQGDOOLWVVWDNHKROGHUV7KH&KDLUPDQ continue to fuel its relentless pursuit of ever-higher goals. JXLGHVWKH%RDUGIRUHƪHFWLYHJRYHUQDQFHVWUXFWXUHLQWKH Company. On standalone basis, we have grown by a Compounded Annual Growth Rate (CAGR) of Revenues 23.5%, Earnings The Chairman takes a lead role in managing the Board and Before Interest Tax Depreciation and Amortisation IDFLOLWDWLQJHƪHFWLYHFRPPXQLFDWLRQDPRQJ'LUHFWRUV (%,7'$ DQG1HW3URƬW7KHƬQDQFLDO The Chairman is responsible for matters pertaining to markets have endorsed our sterling performance and the governance, including the organisation and composition market capitalisation has increased by CAGR of 31.4% of the Board, the organisation and conduct of Board during the same period. In terms of distributing wealth PHHWLQJVHƪHFWLYHQHVVRIWKH%RDUGFRPPLWWHHVDQG to our shareholders, apart from having a track record of LQGLYLGXDO'LUHFWRUVLQIXOƬOOLQJWKHLUUHVSRQVLELOLWLHV7KH uninterrupted dividend payout, we have also delivered Company Secretary assists the Chairman in management consistent unmatched shareholder returns since listing. The of the Board’s administrative activities such as meetings, result of our initiative is our ever widening reach and recall. schedules, agendas, communication and documentation. 2XUVKDUHKROGHUEDVHKDVJURZQIURPDIWHUWKH,32WR a consolidated present base of around 2.3 million. The Chairman actively works with the Human Resources, Nomination and Remuneration Committee to plan For decades, RIL is growing in step with India’s industrial and the Board and committees’ composition, induction of economic development. The Company has helped transform directors to the Board, plan for directors’ succession and the Indian economy with large projects and world-class provide constructive feedback and advice on performance execution. The quest to help elevate India’s quality of life evaluation to directors. continues and is unabated. It emanates from a fundamental article of faith: ‘What is good for India is good for Reliance’.
Corporate Overview Management Review Governance 180-273 Financial Statements Notice 198 Reliance Industries Limited • Making Life Better. For Everyone. Board Leadership • 3ROLF\RQ'HWHUPLQDWLRQDQG'LVFORVXUHRI0DWHULDOLW\RI A majority of the Board, i.e. 8 out of 14 Directors, are (YHQWVDQG,QIRUPDWLRQDQG:HE$UFKLYDO3ROLF\ Independent Directors. At RIL, it is our belief that an • 'LYLGHQG'LVWULEXWLRQ3ROLF\ enlightened Board consciously creates a culture of leadership to provide a long-term vision and policy approach Audits and Internal Checks and Balances to improve the quality of governance. The Board’s actions 65%& &R//3&KDUWHUHG$FFRXQWDQWVDQG'76 and decisions are aligned with the Company’s best interests. Associates, Chartered Accountants, were appointed as It is committed to the goal of sustainably elevating the Auditors of the Company at the Annual General Meeting held &RPSDQ\pVYDOXHFUHDWLRQ7KH&RPSDQ\KDVGHƬQHG RQ-XO\IRUDWHUPRI ƬYH FRQVHFXWLYH\HDUV7KH guidelines and an established framework for the meetings &RPSDQ\KDVDQ,QWHUQDO$XGLW&HOOEHVLGHVH[WHUQDOƬUPV of the Board and Committees. These guidelines seek to acting as independent internal auditors that reviews internal systematise the decision-making process at the controls and operating systems and procedures. A dedicated meetings of the Board and Committees in an informed and Legal Compliance Cell ensures that the Company conducts HƯFLHQWPDQQHU its businesses with high standards of legal, statutory and regulatory compliances. RIL has instituted a legal compliance The Board critically evaluates the Company’s strategic programme in conformity with the best international standards, GLUHFWLRQPDQDJHPHQWSROLFLHVDQGWKHLUHƪHFWLYHQHVV7KH supported by a robust online system that covers all businesses agenda for the Board review inter alia include strategic review of the Company and that of its subsidiaries. The purview of this from each of the Committees, a detailed analysis and review system includes various statutes, such as industrial and labour of annual operating plans, capital allocation and budgets. laws, taxation laws, corporate and securities laws and health, Additionally, the Board reviews risks and risk mitigation safety and environmental laws. PHDVXUHVƬQDQFLDOUHSRUWVDQGEXVLQHVVUHSRUWVIURPHDFK of the sector heads. Frequent and detailed interaction sets At the heart of the processes is the extensive use of the agenda and provides the strategic roadmap for the technology. This ensures robustness and integrity of Company’s future growth. ƬQDQFLDOUHSRUWLQJDQGLQWHUQDOFRQWUROVDOORZVRSWLPDOXVH and protection of assets, facilitates accurate and timely Ethics / Governance Policies FRPSLODWLRQRIƬQDQFLDOVWDWHPHQWVDQGPDQDJHPHQW At RIL, we strive to conduct our business and strengthen reports and ensures compliance with statutory laws, RXUUHODWLRQVKLSVLQDPDQQHUWKDWLVGLJQLƬHGGLVWLQFWLYH regulations and company policies. and responsible. We adhere to ethical standards to ensure integrity, transparency, independence and accountability in Management Initiatives for Controls and Compliance dealing with all stakeholders. Therefore, we have adopted The Company has established the “Reliance Management various codes and policies to carry out our duties in an ethical System” (RMS) as part of its transformation agenda. RMS manner. Some of these codes and policies are: incorporates an integrated framework for managing risks • Code of Conduct DQGLQWHUQDOFRQWUROV7KHLQWHUQDOƬQDQFLDOFRQWUROVKDYH been documented, embedded and digitised in the business • &RGHRI&RQGXFWIRU3URKLELWLRQRI,QVLGHU7UDGLQJ processes. Internal controls are regularly tested for design, • +HDOWK6DIHW\DQG(QYLURQPHQW +6( 3ROLF\ LPSOHPHQWDWLRQDQGRSHUDWLQJHƪHFWLYHQHVV • 9LJLO0HFKDQLVPDQG:KLVWOHEORZHU3ROLF\ Best Corporate Governance Practices • 3 ROLF\RQ0DWHULDOLW\RI5HODWHG3DUW\7UDQVDFWLRQVDQGRQ RIL maintains the highest standards of Corporate GHDOLQJZLWK5HODWHG3DUW\7UDQVDFWLRQV Governance. It is the Company’s constant endeavour to adopt the best Corporate Governance practices keeping in • &RUSRUDWH6RFLDO5HVSRQVLELOLW\3ROLF\ view the international codes of Corporate Governance and • 3ROLF\IRUVHOHFWLRQRI'LUHFWRUVDQGGHWHUPLQLQJ'LUHFWRUpV practices of well-known global companies. Some of the best independence implemented global governance norms include the following: • 5HPXQHUDWLRQ3ROLF\IRU'LUHFWRUV.H\0DQDJHULDO3HUVRQQHO • The Company has a designated Lead Independent Director and other employees ZLWKDGHƬQHGUROH • 3ROLF\IRUGHWHUPLQLQJ0DWHULDO6XEVLGLDULHV • $OOVHFXULWLHVUHODWHGƬOLQJVZLWK6WRFN([FKDQJHVDUH reviewed every quarter by the Stakeholders’ Relationship • &RGHRI3UDFWLFHVDQG3URFHGXUHVIRU)DLU'LVFORVXUHRI Committee. 8QSXEOLVKHG3ULFH6HQVLWLYH,QIRUPDWLRQ • The Company has independent Committees for matters • 3ROLF\IRU3UHVHUYDWLRQRI'RFXPHQWV related to Corporate Governance and stakeholders’ interface and nomination of Board members.
Integrated Annual Report 2017–18 Corporate Governance Report 199 • The Company’s internal audit is also conducted by 10. Social return on investment (SROI), independent auditors. 11. The Global Recycle Standards (GRS) Version 3.0 for • The Company undergoes quarterly secretarial compliance WUDFHDELOLW\RIƬEUHVDQG FHUWLƬFDWLRQIURPDQLQGHSHQGHQWFRPSDQ\VHFUHWDU\ZKRLV 3ULPH0LQLVWHUpV2ƯFH 302 LQLWLDWLYHVIRU in whole-time practice. India / NITI Aayog. Business Risk and Assurance Committees (BRACs) Integrated Reporting To have a better assessment of the business and functional RIL has been at the forefront of adopting an integrated ULVNVDQGWRPRQLWRUULVNPLWLJDWLRQHƪHFWLYHQHVVEDVHGRQULVN thinking in the Company’s management approach. This evaluation, the concept of BRACs was introduced comprising DSSURDFKUHƮHFWVLQWKH&RPSDQ\pVEXVLQHVVPRGHOZKLFK senior management personnel in the said committee. stands on the foundation of value creation for all stakeholder groups. While the model is designed to deliver superior RIL’s Sustainability Reporting Journey ƬQDQFLDOSHUIRUPDQFHLWDOVRHQVXUHVWKDWLQWKHSURFHVV RIL has been publishing Sustainability Reports annually WKHUHLVVLJQLƬFDQWDPRXQWRIYDOXHDGGLWLRQDFURVVWKH since FY 2004-05 based on the Global Reporting Initiative’s organisation’s value chain and its related stakeholder groups. (GRI) reporting guidelines. For the last decade, the reports have been GRI checked with an ‘A+’ application level. 5,/LVDƬUPEHOLHYHUWKDWWKHVXFFHVVRIDEXVLQHVVLVQRW )XUWKHUPRUHWKH&RPSDQ\SXEOLVKHGLWVƬUVWVXVWDLQDELOLW\ PHUHO\GHƬQHGE\WKHƬQDQFLDOSHUIRUPDQFHRIWKH&RPSDQ\ report according to GRI Standards’ (including Oil and Gas but also on how well it is able to meet its ambitions while sector disclosures) ‘In accordance – Comprehensive’ option maintaining the balance of the natural ecosystem and meeting ZKLFKZDVLQWURGXFHGLQ7KHUHSRUWKDVEHHQ the expectations of the people who are associated with it. externally assured (Type II high level) indicating highest Ensuring long-term societal value creation and propagating level of comprehensive disclosures for GRI Standards. RIL technological advancement are equally critical factors for is also a member of World Business Council of Sustainable the Company’s long-term sustainability. For years, RIL has Development (WBCSD) and Global Reporting Initiative (GRI). been living this philosophy and has based its business and WBCSD’s “Reporting matters” 2015 & 2017 has recognized investment decisions on this integrated approach. RIL’s sustainability report as leading example of the best practices. The reports are available at http://www.ril.com/ Taking one step further in this direction, RIL published its Sustainability/CorporateSustainability.aspx PDLGHQ,QWHJUDWHG$QQXDO5HSRUWLQWKH)
Corporate Overview Management Review Governance 180-273 Financial Statements Notice 200 Reliance Industries Limited • Making Life Better. For Everyone. 2. Human Capital: Registrars and Transfer Agents, details of which are available RIL’s focus is on creating an enabling work environment on the Company’s website. RIL ensures that complaints of its which provides a platform to all its workers to learn and shareholders are responded to promptly. A comprehensive grow. RIL is committed to creating a diverse workforce and informative shareholders’ referencer is available on the and provides equal opportunity to all its employees. The website of the Company. Company’s HR framework is working towards creating a culture where employees are encouraged to drive Role of the Company Secretary in overall performance while upholding the organisation’s value Governance Process system. The Company Secretary plays a key role in ensuring that the Board (including committees thereof) procedures are followed 3. Intellectual Capital: and regularly reviewed. The Company Secretary ensures that The role of technology holds the key to unlocking value all relevant information, details and documents are made across all dimensions. RIL has leveraged on its position as DYDLODEOHWRWKH'LUHFWRUVDQGVHQLRUPDQDJHPHQWIRUHƪHFWLYH a smart buyer of technology in the past to evolve and build decision-making at the meetings. The Company Secretary in-house capabilities to customise existing technologies is primarily responsible to assist and advice the Board in the and develop new ones. The Company has built a FRQGXFWRIDƪDLUVRIWKH&RPSDQ\WRHQVXUHFRPSOLDQFHZLWK VLJQLƬFDQWUHVRXUFHSRRODQGLVFRPPLWWHGWRHQKDQFHLWV applicable statutory requirements, to provide guidance to HƪRUWVLQWKHIXWXUH directors and to facilitate convening of meetings. He interfaces between the management and regulatory authorities for 4. Manufactured Capital: governance matters. Over FY 2017-18, RIL has been able to successfully FRPPLVVLRQWKHUHƬQHU\RƪJDVFUDFNHUSODQWDW Board of Directors -DPQDJDU7KH'7$SHWFRNHJDVLƬFDWLRQKDVFRPPHQFHG operations and is undergoing stabilisation activities, Board Composition and Category of Directors which is aimed at utilising the bottom-of-the-barrel crude The Company’s policy is to maintain optimum combination and contribute further to the nation’s energy security. of Executive and Non-Executive Directors. The composition of the Board and category of Directors are as follows: 5. Financial Capital: RIL retained its domestic credit ratings of “CRISIL AAA” Category Name of Directors from CRISIL and “IND AAA” from India Ratings and an Promoter Directors Mukesh D. Ambani investment grade rating for its international debt from (Chairman and Managing Director) 0RRG\pVDV%DDDQG%%%IURP6 35,/LVDEOHWRDFFHVV Nita M. Ambani (Non-Executive, Non-Independent FDSLWDOIURPGLYHUVLƬHGPDUNHWVDWFRPSHWLWLYHUDWHV Director) 6. Social and Relationship Capital: Independent Mansingh L. Bhakta RIL has worked alongside its varied stakeholder groups Directors
Integrated Annual Report 2017–18 Corporate Governance Report 201 Selection of Independent Directors • To liaise between the Chairman and Managing Director, the Considering the requirement of skill sets on the Board, Management and the Independent Directors eminent people having an independent standing in their • To preside over meetings of the Board and Shareholders UHVSHFWLYHƬHOGSURIHVVLRQDQGZKRFDQHƪHFWLYHO\ when the Chairman and Managing Director is not present, or contribute to the Company’s business and policy decisions where he is an interested party are considered by the Human Resources, Nomination and Remuneration Committee, for appointment, as Independent • To perform such other duties as may be delegated to the Director on the Board. The Committee, inter alia, considers Lead Independent Director by the Board / Independent TXDOLƬFDWLRQSRVLWLYHDWWULEXWHVDUHDRIH[SHUWLVHDQG Directors number of Directorship(s) and Membership(s) held in various committees of other companies by such persons Meetings of Independent Directors LQDFFRUGDQFHZLWKWKH&RPSDQ\pV3ROLF\IRU6HOHFWLRQRI The Company’s Independent Directors met three times Directors and determining Directors’ independence. The GXULQJWKHƬQDQFLDO\HDUZLWKRXWWKHSUHVHQFHRI Board considers the Committee’s recommendation, and Executives. Such meetings were conducted to enable the takes appropriate decision. Independent Directors to discuss matters pertaining to WKH&RPSDQ\pVDƪDLUVDQGSXWIRUWKWKHLUYLHZVWRWKH/HDG (YHU\,QGHSHQGHQW'LUHFWRUDWWKHƬUVWPHHWLQJRIWKH%RDUG Independent Director. The Lead Independent Director in which he participates as a Director and thereafter at the takes appropriate steps to present Independent Directors’ ƬUVWPHHWLQJRIWKH%RDUGLQHYHU\ƬQDQFLDO\HDUJLYHVD views to the Chairman and Managing Director. declaration that he meets the criteria of independence as provided under the law. Code of Conduct The Company has in place a comprehensive Code of Familiarisation Programmes for Board Members Conduct (‘the Code’) applicable to the Directors and The Board members are provided with necessary documents employees. The Code is applicable to Non-Executive / brochures, reports and internal policies to enable them to Directors including Independent Directors to such an extent familiarise with the Company’s procedures and practices. as may be applicable to them depending on their roles and responsibilities. The Code gives guidance and support 3HULRGLFSUHVHQWDWLRQVDUHPDGHDWWKH%RDUGDQG needed for ethical conduct of business and compliance of Committee meetings on business and performance updates ODZ7KH&RGHUHƮHFWVWKHFRUHYDOXHVRIWKH&RPSDQ\YL] of the Company, global business environment, business Customer Value, Ownership Mindset, Respect, Integrity, strategy and risks involved. Detailed presentations on the One Team and Excellence. Company’s business segments are made at the separate meetings of the Independent Directors from time to time. A copy of the Code has been put up on the Company’s website and can be accessed at http://www.ril.com/ Quarterly updates on relevant statutory, regulatory changes DownloadFiles/IRStatutory/Code-of-Conduct.pdf The and landmark judicial pronouncements encompassing Code has been circulated to Directors and Management important laws are regularly circulated to the Directors. 3HUVRQQHODQGLWVFRPSOLDQFHLVDƯUPHGE\WKHPDQQXDOO\ Site visits to various plant locations are organised for the Independent Directors to enable them to understand and A declaration signed by the Company’s Chairman and acquaint with the operations of the Company. Managing Director is published in this Report. The details of such familiarisation programmes for Succession Planning Independent Directors are put up on the Company’s The Human Resources, Nomination and Remuneration website and can be accessed at http://www.ril.com/ Committee believes that sound succession plans for the InvestorRelations/Downloads.aspx senior leadership are very important for creating a robust future for the Company. The Committee works along with Lead Independent Director the Human Resource team of the Company for a proper The Company’s Board of Directors has designated leadership succession plan. Shri Mansingh L. Bhakta as the Lead Independent Director way back in October 2005. The Lead Independent Director’s Performance Evaluation criteria for Directors role is: The Human Resources, Nomination and Remuneration Committee has devised a criteria for evaluation of the • To preside over all meetings of Independent Directors performance of the Directors including Independent • 7RHQVXUHWKHUHLVDQDGHTXDWHDQGWLPHO\ƮRZRI Directors. The said criteria provides certain parameters information to Independent Directors like attendance, acquaintance with business, communicate inter se ERDUGPHPEHUVHƪHFWLYHSDUWLFLSDWLRQGRPDLQ
Corporate Overview Management Review Governance 180-273 Financial Statements Notice 202 Reliance Industries Limited • Making Life Better. For Everyone. knowledge, compliance with code of conduct, vision and The Company’s various business heads / service heads strategy, benchmarks established by global peers etc., which are advised to schedule their work plans well in advance, is in compliance with applicable laws, regulations particularly with regard to matters requiring discussion and guidelines. / approval / decision at Board / Committee meetings. Such matters are communicated by them to the Company 'LUHFWRUVp3URƬOH Secretary in advance so that they are included in the agenda A brief resume of Directors, nature of their expertise in for Board / Committee meetings. VSHFLƬFIXQFWLRQDODUHDVDQGQDPHVRIFRPSDQLHVLQZKLFK they hold Directorship(s), Membership(s) / Chairmanship(s) The Board is given presentations covering Finance, Sales, of Committees are put up on the Company’s website and Marketing, the Company’s major business segments and can be accessed at http://www.ril.com/OurCompany/ their operations, overview of business operations of major Leadership/BoardOfDirectors.aspx subsidiary companies, global business environment, the Company’s business areas, including business opportunities Board Meetings, Committee Meetings and strategy and risk management practices in addition to and Procedures DSSURYLQJ&RPSDQ\pVƬQDQFLDOUHVXOWV Institutionalised decision-making process The Chairman of the Board and Company Secretary, in The Board of Directors is the apex body constituted consultation with other concerned members of the by shareholders for overseeing the Company’s overall VHQLRUPDQDJHPHQWƬQDOLVHWKHDJHQGDIRU%RDUG functioning. The Board provides and evaluates the Committee meetings. Company’s strategic direction, management policies and WKHLUHƪHFWLYHQHVVDQGHQVXUHVWKDWVKDUHKROGHUVp The agenda and notes on agenda are circulated to Directors long-term interests are being served. LQDGYDQFHDQGLQWKHGHƬQHGDJHQGDIRUPDW$OOPDWHULDO information is incorporated in the agenda for facilitating The Board has constituted seven Committees, viz. meaningful and focused discussions at the meeting. Where Audit Committee, Human Resources, Nomination and it is not practicable to attach any document to the agenda, Remuneration Committee, Stakeholders’ Relationship LWLVWDEOHGEHIRUHWKHPHHWLQJZLWKVSHFLƬFUHIHUHQFH Committee, Corporate Social Responsibility and Governance WRWKLVHƪHFWLQWKHDJHQGD,QVSHFLDODQGH[FHSWLRQDO Committee, Risk Management Committee, Health, Safety circumstances, additional or supplementary item(s) on the and Environment Committee and Finance Committee. agenda are permitted. The Board is authorised to constitute additional functional Committees, from time to time, depending on All Board and Committee meetings’ agenda papers are business needs. disseminated electronically on a real-time basis, by XSORDGLQJWKHPRQDVHFXUHGRQOLQHDSSOLFDWLRQVSHFLƬFDOO\ The Company’s internal guidelines for Board / Committee designed for this purpose, thereby eliminating circulation of meetings facilitate decision-making process at its meetings printed agenda papers. LQDQLQIRUPHGDQGHƯFLHQWPDQQHU7KHIROORZLQJ sub-sections deal with the practice of these guidelines Recording Minutes of Proceedings at Board and at RIL. Committee Meetings The Company Secretary records minutes of proceedings Scheduling and Selection of Agenda items for Board of each Board and Committee meeting. Draft minutes and Committee Meetings are circulated to Board / Committee members for their 0LQLPXPƬYHSUHVFKHGXOHG%RDUGPHHWLQJVDUHKHOG comments as prescribed under Secretarial Standard-1. The annually. Additional Board meetings are convened to address minutes are entered in the Minutes Book within 30 days from WKH&RPSDQ\pVVSHFLƬFQHHGV,QFDVHRIEXVLQHVVH[LJHQFLHV the conclusion of the meeting. or urgency, resolutions are passed by circulation. The Board notes compliance reports of all laws applicable to the Post Meeting follow-up Mechanism Company, every quarter. The guidelines for Board / Committee meetings facilitate DQHƪHFWLYHSRVWPHHWLQJIROORZXSUHYLHZDQGUHSRUWLQJ 7KHPHHWLQJVDUHKHOGDWWKH&RPSDQ\pVRƯFHDW0DNHU process for decisions taken by the Board and &KDPEHUV,91DULPDQ3RLQW0XPEDLDQGPDMRU Committees thereof. plant locations as decided by the Board.
Integrated Annual Report 2017–18 Corporate Governance Report 203 Important decisions taken at Board / Committee meetings Number of Board Meetings are communicated promptly to the concerned departments Six Board meetings were held during the year, as against the / divisions. Action taken report on decisions / minutes of the minimum requirement of four meetings. The details of Board previous meeting(s) is placed at the succeeding meeting of meetings held are given below: the Board / Committees for noting. Date Board Strength No. of Directors Present Compliance April 24, 2017 14 14 The Company Secretary, while preparing the agenda, notes July 20, 2017 14 14 on agenda and minutes of the meeting(s), is responsible for July 21, 2017 14 14 and is required to ensure adherence to all applicable laws and October 13, 2017 14 14 regulations, including the Companies Act, 2013 read with rules January 19, 2018 14 14 issued thereunder, Listing Regulations and Secretarial Standards March 23, 2018 14 14 issued by the Institute of Company Secretaries of India. Attendance of Directors at Board Meetings, last Annual General Meeting and number of other Directorship(s) and Chairmanship(s) / Membership(s) of Committees of each Director in various Companies: Name of the Director Attendance at meetings No. of other No. of Membership(s) / Chairmanship(s) of during 2017-18 Directorship(s) as Committees in other Companies as on 31-03-2018 on 31-03-2018 Board AGM (1) (2) Mukesh D. Ambani Yes 5 Nil Mansingh L. Bhakta Yes Nil Nil
Corporate Overview Management Review Governance 180-273 Financial Statements Notice 204 Reliance Industries Limited • Making Life Better. For Everyone. COMMITTEES Details of the Committees and other related information are provided hereunder: Composition of Committees of the Company Audit Committee Human Resources, Nomination and Remuneration Committee 1. Yogendra P. Trivedi 1. Adil Zainulbhai Independent Director Independent Director (Chairman of the Committee) (Chairman of the Committee) 2. Dr. Raghunath A. Mashelkar 2. Yogendra P. Trivedi Independent Director Independent Director 3. Adil Zainulbhai 3. Dr. Raghunath A. Mashelkar Independent Director Independent Director 4. Raminder Singh Gujral 4. Raminder Singh Gujral Independent Director Independent Director 5. Dr. Shumeet Banerji Independent Director Stakeholders’ Relationship Committee Corporate Social Responsibility and Governance Committee 1. Yogendra P. Trivedi 1. Yogendra P. Trivedi Independent Director Independent Director (Chairman of the Committee) (Chairman of the Committee) 2. Nikhil R. Meswani 2. Nikhil R. Meswani Executive Director Executive Director 3. Hital R. Meswani 3. Dr. Raghunath A. Mashelkar Executive Director Independent Director 4. Prof. Ashok Misra 4. Dr. Shumeet Banerji Independent Director Independent Director Risk Management Committee Health, Safety and Environment Committee 1. Adil Zainulbhai 1. Hital R. Meswani Independent Director Executive Director (Chairman of the Committee) (Chairman of the Committee) 2. Hital R. Meswani 2. P. M. S. Prasad Executive Director Executive Director 3. P. M. S. Prasad 3. Pawan Kumar Kapil Executive Director Executive Director 4. Alok Agarwal 4. Prof. Ashok Misra &KLHI)LQDQFLDO2ƯFHU Independent Director 5. Srikanth Venkatachari 5. Dr. Raghunath A. Mashelkar -RLQW&KLHI)LQDQFLDO2ƯFHU Independent Director Finance Committee 1. Mukesh D. Ambani Chairman and Managing Director (Chairman of the Committee) 2. Nikhil R. Meswani Executive Director 3. Hital R. Meswani Executive Director .6HWKXUDPDQ*URXS&RPSDQ\6HFUHWDU\DQG&KLHI&RPSOLDQFH2ƯFHULVWKH6HFUHWDU\RIDOOWKH&RPPLWWHHV
Integrated Annual Report 2017–18 Corporate Governance Report 205 Meetings of Committees held during the year and Directors’ Attendance: Committees of the Audit Human Corporate Stakeholders’ Health, Finance Risk Company Committee Resources, Social Relationship Safety and Committee Management Nomination Responsibility Committee Environment Committee and and (HSE) Remuneration Governance Committee (HRNR) (CSR&G) Committee Committee Meetings held 11 4 4 5 4 19 5 Directors’ Attendance Mukesh D. Ambani NA NA NA NA NA 19 NA Mansingh L. Bhakta NA NA NA NA NA NA NA
Corporate Overview Management Review Governance 180-273 Financial Statements Notice 206 Reliance Industries Limited • Making Life Better. For Everyone. (c) major accounting entries involving estimates based on • To look into the reasons for substantial defaults, in the the exercise of judgment by management; payment to the depositors, debenture holders, shareholders (in case of non-payment of declared dividend) and creditors. G VLJQLƬFDQWDGMXVWPHQWVPDGHLQWKHƬQDQFLDO VWDWHPHQWVDULVLQJRXWRIDXGLWƬQGLQJV • (a) To review the functioning of the Whistle-blower mechanism; (e) compliance with listing and other legal requirements UHODWLQJWRƬQDQFLDOVWDWHPHQWV (b) To oversee the vigil mechanism (f) disclosure of any related party transactions; • $ SSURYDORIDSSRLQWPHQWRI&KLHI)LQDQFLDO2ƯFHUDIWHU DVVHVVLQJTXDOLƬFDWLRQVH[SHULHQFHDQGEDFNJURXQGHWFRI J PRGLƬHGRSLQLRQ V LQWKHGUDIWDXGLWUHSRUW the candidate. • 5HYLHZLQJZLWKWKHPDQDJHPHQWWKHTXDUWHUO\ƬQDQFLDO • Mandatorily review the following: statements before submission to the Board for approval. D 0 DQDJHPHQW'LVFXVVLRQDQG$QDO\VLVRIƬQDQFLDO • Reviewing, with the management, the statement of uses / condition and results of operations; application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of E 6 WDWHPHQWRIVLJQLƬFDQWUHODWHGSDUW\WUDQVDFWLRQV funds utilised for the purposes other than those stated DVGHƬQHGE\WKH$XGLW&RPPLWWHH VXEPLWWHGE\ LQWKHRƪHUGRFXPHQWSURVSHFWXVQRWLFHDQGWKH management; report submitted by the monitoring agency monitoring (c) Management letters / letters of internal control the utilisation of proceeds of a public or rights issue, and weaknesses issued by the statutory auditors; making appropriate recommendations to the Board to take up steps in this matter. (d) Internal audit reports relating to internal control weaknesses; • Reviewing and monitoring the auditor’s independence and SHUIRUPDQFHDQGHƪHFWLYHQHVVRIDXGLWSURFHVV (e) The appointment, removal and terms of remuneration of the chief internal auditor; • $SSURYDORUDQ\VXEVHTXHQWPRGLƬFDWLRQRIWUDQVDFWLRQV with related parties of the Company. (f) Statement of deviations: • Scrutiny of inter-corporate loans and investments. (i) quarterly statement of deviation(s) including report of monitoring agency, if applicable, • Valuation of undertakings or assets of the Company, submitted to stock exchanges(s) in terms of wherever it is necessary. Regulation 32(1) of the Listing Regulations. • (YDOXDWLRQRILQWHUQDOƬQDQFLDOFRQWUROVDQGULVN (ii) annual statement of funds utilised for purpose management systems. RWKHUWKDQWKRVHVWDWHGLQWKHRƪHUGRFXPHQW • (a) Reviewing, with the management, performance of / prospectus in terms of Regulation 32(7) of the statutory and internal auditors; Listing Regulations. (b) Reviewing, with the management, adequacy of the • 5HYLHZLQJƬQDQFLDOVWDWHPHQWVLQSDUWLFXODUWKHLQYHVWPHQWV internal control systems. made by the Company’s unlisted subsidiaries. • Reviewing the adequacy of internal audit function, if any, • 1RWHUHSRUWRIFRPSOLDQFHRƯFHUDVSHU6(%, 3URKLELWLRQRI including the structure of internal audit department, Insider Trading) Regulation, 2015. VWDƯQJDQGVHQLRULW\RIWKHRƯFLDOKHDGLQJWKHGHSDUWPHQW • Formulating the scope, functioning, periodicity of and reporting structure coverage and frequency of internal audit. methodology for conducting the internal audit. • 'LVFXVVLRQZLWKLQWHUQDODXGLWRUVRIDQ\VLJQLƬFDQWƬQGLQJV • Annual performance evaluation of the Committee and follow up there on. • Review show cause, demand, prosecution notice(s) and • 5HYLHZLQJWKHƬQGLQJVRIDQ\LQWHUQDOLQYHVWLJDWLRQVE\WKH penalty notice(s), which are materially important. internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a • 5HYLHZDQ\PDWHULDOGHIDXOWLQƬQDQFLDOREOLJDWLRQVWRDQGE\ material nature and reporting the matter to the Board. the listed entity, or substantial non-payment for goods sold by the Company. • Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as • Review any issue, which involves possible public or product post audit discussion to ascertain any area of concern. liability claims of substantial nature, including any judgement or order which may have passed strictures on the conduct of
Integrated Annual Report 2017–18 Corporate Governance Report 207 the listed entity or taken an adverse view regarding another Terms of Reference of the Committee inter alia include the enterprise that may have negative implications on the following Company. • )RUPXODWLRQRIWKHFULWHULDIRUGHWHUPLQLQJTXDOLƬFDWLRQV positive attributes and independence of a Director, • Review details of joint venture or collaboration agreement. and recommend to the Board a policy, relating to the • Review sale of investments, subsidiaries, assets which are UHPXQHUDWLRQRIWKH'LUHFWRUV.H\0DQDJHULDO3HUVRQQHODQG material in nature and not in normal course of business. other Employees. • Review quarterly details of foreign exchange exposures and • Formulation of the criteria for evaluation of performance of the steps taken by management to limit the risks of adverse Independent Directors and the Board. exchange rate movement, if material. • Devising a policy on Board Diversity. • To carry out any other function as is mandated by the • ,GHQWLI\LQJSHUVRQVZKRDUHTXDOLƬHGWREHFRPH'LUHFWRUV Board from time to time and / or enforced by any statutory and who may be appointed in senior management in QRWLƬFDWLRQDPHQGPHQWRUPRGLƬFDWLRQVDVPD\EH accordance with the criteria laid down and to recommend to applicable. the Board their appointment and / or removal. General • Consider extension or continuation of the term of The representatives of Statutory Auditors are permanent appointment of the independent directors on the basis of the invitees to the Audit Committee meetings. The representatives report of performance evaluation of Independent Directors. of Statutory Auditors, Executives from Accounts department, • 6SHFLI\LQJWKHPDQQHUIRUHƪHFWLYHHYDOXDWLRQRI Finance department, Corporate Secretarial department performance of Board, its Committees and Individual and Internal Audit department attend the Audit Committee Directors and review its implementation and compliance. meetings. The Cost Auditors attend the Audit Committee meeting where cost audit report is discussed. The due date for • Review human resource policies and overall human resources ƬOLQJWKHFRVWDXGLWUHSRUWLQ;%5/PRGHIRUWKHƬQDQFLDO\HDU of the Company. ended March 31, 2017 was August 19, 2017 and the cost audit • Recommend / review remuneration of the Managing UHSRUWZDVƬOHGE\WKH&RPSDQ\RQ$XJXVW7KHFRVW Director(s) and Whole-time Director(s) based on their DXGLWUHSRUWRIWKH&RPSDQ\IRUƬQDQFLDO\HDUHQGHG SHUIRUPDQFHDQGGHƬQHGDVVHVVPHQWFULWHULD 0DUFKZLOOEHƬOHGZLWK&HQWUDO*RYHUQPHQWRQRU before the due date as prescribed under Companies Act, 2013. • Administer, monitor and formulate detailed terms and conditions of the Employees’ Stock Option Scheme. The Internal Auditor reports directly to the • Annual performance evaluation of the Committee. Audit Committee. • Review the information on recruitment and remuneration The Chairman of the Audit Committee was present at the RIVHQLRURƯFHUVMXVWEHORZWKHOHYHORIERDUGRIGLUHFWRUV last Annual General Meeting held on July 21, 2017. LQFOXGLQJDSSRLQWPHQWRUUHPRYDORI&KLHI)LQDQFLDO2ƯFHU and the Company Secretary. Meeting Details • 5HYLHZVLJQLƬFDQWODERXUSUREOHPVDQGWKHLUSURSRVHG Eleven meetings of the Committee were held during the year, VROXWLRQV$Q\VLJQLƬFDQWGHYHORSPHQWLQ+XPDQ5HVRXUFHV as against the minimum requirement of four meetings. The / Industrial Relations front like signing of wage agreement, meetings were held on April 21, 2017; April 24, 2017; implementation of Voluntary Retirement Scheme etc. May 10, 2017; July 19, 2017; July 20, 2017; October 11, 2017; October 13, 2017; December 7, 2017; January 17, • To carry out any other function as is mandated by the 2018; January 19, 2018 and March 23, 2018. The details of Board from time to time and / or enforced by any statutory attendance are given in this Report. QRWLƬFDWLRQDPHQGPHQWRUPRGLƬHGDVPD\EHDSSOLFDEOH Meeting Details Human Resources, Nomination and Four meetings of the Committee were held during the year. Remuneration Committee 7KHPHHWLQJVZHUHKHOGRQ$SULO-XO\ The Committee’s composition and terms of reference are in December 7, 2017 and January 17, 2018. The details of compliance with the provisions of the Companies Act, 2013, attendance are given in this Report. Regulation 19 of the Listing Regulations and Securities and ([FKDQJH%RDUGRI,QGLD 6KDUH%DVHG(PSOR\HH%HQHƬWV The details relating to remuneration of Directors, as required Regulations, 2014, as amended from time to time. The under Regulation 34 read with Schedule V of the Listing composition of Committee is given in this Report.
Corporate Overview Management Review Governance 180-273 Financial Statements Notice 208 Reliance Industries Limited • Making Life Better. For Everyone. Regulations, have been given under a separate section, viz. Investor Grievance Redressal ‘Directors’ Remuneration’ in this Report. The number of complaints received and resolved to the satisfaction of investors during the year under review and Stakeholders’ Relationship Committee their break-up are as under: The Committee’s composition and terms of reference are in compliance with the provisions of the Companies Act, Number of Type of Complaints 2013 and Regulation 20 of the Listing Regulations. The Complaints composition of Committee is given in this Report. Non-Receipt of Annual Reports 131 Non-Receipt of Dividend 133 The Stakeholders’ Relationship Committee is primarily Non-Receipt of Interest/ Redemption Warrants 1 responsible to review all matters connected with the Transfer of securities 191 Company’s transfer of securities and redressal of Total 456 shareholders’/ investors’/ security holders’ complaints. As on March 31, 2018, no complaints were outstanding. Terms of Reference of the Committee inter alia include the The response time for attending to investors’ following: FRUUHVSRQGHQFHGXULQJƬQDQFLDO\HDULVDVXQGHU • Oversee and review all matters connected with transfer of Company’s securities. Particulars Number % • $SSURYHLVVXHRIGXSOLFDWHVKDUHVGHEHQWXUHVFHUWLƬFDWHV Total number of correspondence 2,37,389 100.00 received during 2017-18 • Consider, resolve and monitor redressal of investors’ Replied within 1 to 4 days of receipt 99.77 / shareholders’ / security holders’ grievances related Replied within 5 to 7 days of receipt 542 0.23 to transfer of securities, non-receipt of annual reports, non-receipt of declared dividend, issue / new duplicate Corporate Social Responsibility and FHUWLƬFDWHVJHQHUDOPHHWLQJVDQGVRRQ Governance Committee • Oversee the performance of the Company’s Registrars and The Committee’s primary responsibility is to assist the Transfer Agents. Board in discharging its social responsibilities by way of formulating and monitoring implementation of the framework • Monitor implementation and compliance with the Company’s of corporate social responsibility policy, observe practices &RGHRI&RQGXFWIRU3URKLELWLRQRI,QVLGHU7UDGLQJ of Corporate Governance at all levels, and to suggest • Annual performance evaluation of the Committee. remedial measures wherever necessary. The Board has also empowered the Committee to look into the matters related • To carry out any other function as is mandated by the to sustainability and overall governance. Board from time to time and / or enforced by any statutory QRWLƬFDWLRQDPHQGPHQWRUPRGLƬFDWLRQDVPD\ The Committee’s composition and terms of reference are in be applicable. compliance with the provisions of the Companies Act, 2013. The composition of Committee is given in this Report. Meeting Details Five meetings of the Committee were held during the year. Terms of Reference of the Committee inter alia include the 7KHPHHWLQJVZHUHKHOGRQ$SULO-XO\ following: September 13, 2017; October 13, 2017 and January 19, 2018. • Formulate and recommend to the Board, a Corporate Social The details of attendance are given in this Report. 5HVSRQVLELOLW\ &65 3ROLF\LQGLFDWLQJWKHDFWLYLWLHVWREH XQGHUWDNHQE\WKH&RPSDQ\DVVSHFLƬHGLQ6FKHGXOH9,,RI &RPSOLDQFH2ƯFHU the Companies Act, 2013. 6KUL.6HWKXUDPDQ*URXS&RPSDQ\6HFUHWDU\DQG&KLHI &RPSOLDQFH2ƯFHULVWKH&RPSOLDQFH2ƯFHUIRUFRPSO\LQJ • Recommend the amount of expenditure to be incurred on with requirements of Securities Laws. the CSR activities. • Approve Corporate Sustainability Reports and oversee the Prohibition of Insider Trading implementation of sustainability activities. With a view to regulate trading in securities by the directors and designated employees, the Company has adopted a • Monitor Company’s compliance with the Corporate &RGHRI&RQGXFWIRU3URKLELWLRQRI,QVLGHU7UDGLQJ Governance Guidelines and applicable laws and regulations and make recommendations to the Board on all such matters and on any corrective action to be taken, as the Committee may deem appropriate.
Integrated Annual Report 2017–18 Corporate Governance Report 209 • Oversee the implementation of polices contained in Risk Management Committee WKH%XVLQHVV5HVSRQVLELOLW\3ROLF\0DQXDODQGWRPDNH The Committee’s prime responsibility is to implement DQ\FKDQJHVPRGLƬFDWLRQVDVPD\EHUHTXLUHGIURP and monitor the risk management plan and policy of the time to time and to review and recommend the Business Company. The Committee’s composition is in compliance Responsibility Reports (BRR) to the Board for its approval. with the provisions of Regulation 21 of the Listing Regulations. The composition of Committee is given in • 0RQLWRU&653ROLF\RIWKH&RPSDQ\IURPWLPHWRWLPH this Report. • Monitor the CSR activities undertaken by the Company. Terms of Reference of the Committee inter alia include the • Ensure compliance with the corporate governance norms following: prescribed under the Listing Regulations, the Companies • )UDPLQJRI5LVN0DQDJHPHQW3ODQDQG3ROLF\ $FWDQGRWKHUVWDWXWHVRUDQ\PRGLƬFDWLRQRU re-enactment thereof. • Overseeing implementation / Monitoring of Risk 0DQDJHPHQW3ODQDQG3ROLF\ • $GYLVHWKH%RDUGSHULRGLFDOO\ZLWKUHVSHFWWRVLJQLƬFDQW developments in the law and practice of corporate • Validating the process of Risk Management. governance and to make recommendations to the Board • Validating the procedure for Risk Minimisation. for appropriate revisions to the Company’s Corporate Governance Guidelines. • 3HULRGLFDOO\UHYLHZLQJDQGHYDOXDWLQJWKH5LVN0DQDJHPHQW 3ROLF\DQGSUDFWLFHVZLWKUHVSHFWWRULVNDVVHVVPHQWDQGULVN • Observe practices of Corporate Governance at all levels and management processes. to suggest remedial measures wherever necessary. • Continually obtaining reasonable assurance from • Review and assess the adequacy of the Company’s management that all known and emerging risks have been Corporate Governance Manual, Code of Conduct for LGHQWLƬHGDQGPLWLJDWHGRUPDQDJHG Directors and Senior Management, the Code of Ethics and other internal policies and guidelines and monitor that the • Review of development and implementation of a risk principles described therein are being incorporated into the PDQDJHPHQWSROLF\LQFOXGLQJLGHQWLƬFDWLRQWKHUHLQRI Company’s culture and business practices. element of risk. • Formulate / approve codes and / or policies for • Annual performance evaluation of the Committee. better governance. • To carry out any other function as is mandated by the • 3URYLGHFRUUHFWLQSXWVWRWKHPHGLDVRDVWRSUHVHUYHDQG Board from time to time and / or enforced by any statutory protect the Company’s image and standing. QRWLƬFDWLRQDPHQGPHQWRUPRGLƬFDWLRQDVPD\ be applicable. • Disseminate factually correct information to investors, institutions and the public at large. Meeting Details • Establish oversight on important corporate communication Five meetings of the Committee were held during the year. on behalf of the Company with the assistance of consultants The meetings were held on April 21, 2017; August 1, 2017; / advisors, if necessary. October 11, 2017; December 7, 2017 and March 1, 2018. The details of attendance are given in this Report. • Ensure institution of standardised channels of internal communications across the Company to facilitate a high level Health, Safety and Environment Committee of disciplines participation. The Committee is primarily responsible to monitor and • Annual performance evaluation of the Committee. ensure the highest standards of environmental, health and safety norms are maintained, and the Company’s • To carry out any other function as is mandated by the operations are in compliance with the applicable pollution Board from time to time and / or enforced by any statutory and environmental laws across all locations. The Committee QRWLƬFDWLRQDPHQGPHQWRUPRGLƬFDWLRQDVPD\ IXOƬOVLWVUHVSRQVLELOLWLHVE\UHYLHZLQJZLWKWKHPDQDJHPHQW be applicable. health, safety, environmental and social impacts of the Company’s various projects and operations. Meeting Details Four meetings of the Committee were held during the year. The composition of Committee is given in this Report. The meetings were held on April 24, 2017; July 20, 2017; October 11, 2017 and January 17, 2018.The details of attendance are given in this Report.
Corporate Overview Management Review Governance 180-273 Financial Statements Notice 210 Reliance Industries Limited • Making Life Better. For Everyone. Terms of Reference of the Committee inter alia include the • Borrow money by way of loan and / or issue and allot bonds following: / notes denominated in one or more foreign currencies • Monitoring and ensuring the highest standards of LQLQWHUQDWLRQDOPDUNHWVIRUWKHSXUSRVHRIUHƬQDQFLQJ environmental, health and safety norms the existing debt, capital expenditure, general corporate purposes, including working capital requirements and • Ensuring compliance with applicable pollution and possible strategic investments within limits approved environmental laws at the Company’s works / factories / by the Board. ORFDWLRQVE\SXWWLQJLQSODFHHƪHFWLYHV\VWHPVLQWKLVUHJDUG and reviewing the same periodically. • 3URYLGHFRUSRUDWHJXDUDQWHHSHUIRUPDQFHJXDUDQWHHZLWKLQ the limits approved by the Board. • Reviewing, as the Committee deems appropriate, the Company’s health, safety and environment related policy and • Approve opening and operation of Investment Management making recommendations as necessary. Accounts with foreign banks and appoint them as agents, HVWDEOLVKPHQWRIUHSUHVHQWDWLYHVDOHVRƯFHVLQRU • Reviewing the Company’s performance on health, safety and outside India. environment related matters and suggesting improvements as the Committee may deem necessary. • 2WKHUWUDQVDFWLRQVRUƬQDQFLDOLVVXHVWKDWWKH%RDUGPD\ desire to have them reviewed by the Finance Committee. • Reviewing procedures and controls being followed at the (a) Forex derivative transactions Company’s various manufacturing facilities and plants for (b) OTC trades compliance with relevant statutory provisions. (c) Note outstanding borrowings, inter-corporate • Reviewing regularly and making recommendations about investments, loans and guarantees changes to the charter of the Committee. (d) Note status report and hedging activities on commodity and forex products • Annual performance evaluation of the Committee. • Delegate authorities from time to time to the executives • Reviewing fatal or serious accidents, dangerous occurrences, / authorised persons to implement the Committee’s DQ\PDWHULDOHưXHQWRUSROOXWLRQSUREOHPV decisions. • To carry out any other function as is mandated by the • Review regularly and make recommendations about changes Board from time to time and / or enforced by any statutory to the charter of the Committee. QRWLƬFDWLRQDPHQGPHQWRUPRGLƬFDWLRQDVPD\ be applicable. • Carry out any other function as is mandated by the Board from time to time. Meeting Details Meeting Details Four meetings of the Committee were held during the Nineteen meetings of the Finance Committee were held \HDU7KHPHHWLQJVZHUHKHOGRQ$SULO-XO\ during the year. The meetings were held on April 12, 2017; 2017; October 13, 2017 and January 19, 2018. The details of April 24, 2017; July 20, 2017; August 31, 2017 (2 meetings); attendance are given in this Report September 1, 2017 (2 meetings); September 4, 2017 PHHWLQJV 2FWREHU2FWREHU1RYHPEHU Finance Committee 8, 2017 (2 meetings), November 14, 2017 (2 meetings); The composition of Committee is given in this Report. November 17, 2017; November 22, 2017 (2 meetings) and January 19, 2018. The details of attendance are given in this Terms of Reference of the Committee inter alia Include the Report. following: • 5HYLHZWKH&RPSDQ\pVƬQDQFLDOSROLFLHVULVNDVVHVVPHQWDQG Directors’ Remuneration minimisation procedures, strategies and capital structure, Remuneration Policy ZRUNLQJFDSLWDODQGFDVKƮRZPDQDJHPHQWDQGPDNHVXFK 7KH&RPSDQ\pV5HPXQHUDWLRQ3ROLF\IRU'LUHFWRUV.H\ reports and recommendations to the Board with respect 0DQDJHULDO3HUVRQQHODQGRWKHUHPSOR\HHVLVDQQH[HG thereto, as it may deem advisable. as ‘Annexure IVB’ to the Board’s Report. Further, the • Review banking arrangements and cash management &RPSDQ\KDVGHYLVHGD3ROLF\IRUSHUIRUPDQFHHYDOXDWLRQ of Independent Directors, Board, Committees and other • Exercise all powers to borrow money (otherwise than by individual Directors. issue of debentures) within limits approved by the Board, and take necessary actions connected therewith, including The Company’s remuneration policy is directed towards UHƬQDQFLQJIRURSWLPLVDWLRQRIERUURZLQJFRVWV rewarding performance based on review of achievements • Give guarantees / issue letters of comfort / providing periodically. The remuneration policy is in consonance with securities within the limits approved by the Board. the existing industry practice.
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