Introduction• The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is

India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 58 billion.

• The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.

• 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.

Corporate Governance at Reliance is based on the following main principles

• Constitution of a Board of Directors of appropriate composition, size, varied expertise and commitment to discharge its responsibilities and duties.

• Ensuring timely flow of information to the Board and its Committees to enable them to discharge their functions effectively.

• Independent verification and safeguarding integrity of the Company’s financial reporting.

• A sound system of risk management and internal control.

• Timely and balanced disclosure of all material information concerning the Company to all stakeholders.

• Transparency and accountability.

• Compliance with all the applicable rules and regulations.

• Fair and equitable treatment of all its stakeholders including employees, customers, shareholders and investors.

Manufacturing Facilities

• Reliance Industries Limited operates world-class manufacturing facilities across the country at Allahabad, Barabanki, Dahej, Hazira, Hoshiarpur, Jamnagar, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara.

History• It ranks among the top 5 telecommunications companies• Reliance Communications corporate clientele includes 2,100 Indian

and multinational corporations, and over 800 global, regional and domestic carriers.

• The company has established a pan-India, next-generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages.

• Reliance Communications owns and operates the next-generation IP-enabled connectivity infrastructure, comprising over 190,000 kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.

Founder of Reliance Communication

• Dhirubhai H. AmbaniFounder 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.

Cont…………..

• He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'.

• The Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals.

Mukesh Dhirubhai Ambani

• Born: April 19, 1957Achievement: Chairman and Managing Director of Reliance Industries Limited, India's largest private sector company; Chosen as ET Business Leader of the Year 2006; Ranked 42nd among the World's Most Respected Business Leaders and second among the four Indian CEOs featured in a survey conducted by PricewaterhouseCoopers and published in Financial Times, London, November 2004.

Mukesh Ambani is the face of new emerging India. He is the Chairman and Managing Director of Reliance Industries Limited, India's largest private sector company.

Cont……

• Mukesh Ambani joined Reliance in 1981 and was the brain behind Reliance's backward integration from textiles into polyester fibres and further into petrochemicals.

• During the process of backward integration, Mukesh Ambani led the creation of 51 new, world-class manufacturing facilities involving diverse technologies that raised Reliance's manufacturing capacities manifold.

Anil Dhirubhai Ambani

• Anil Dhirubhai Ambani Group (ADAG) stocks have slipped further today.• Reliance Infrastructure touched an intraday high of Rs 517.55 and an intraday low of Rs

500.20. At 14:43 hrs the share was quoting at Rs 505.80, down Rs 18, or 3.44%. It was trading with volumes of 166,464 shares.

• Reliance Capital touched an intraday high of Rs 482.50 and an intraday low of Rs 463.55. At 14:43 hrs the share was quoting at Rs 468.25, down Rs 26.55, or 5.37%. It was trading with volumes of 238,009 shares.

• Reliance Communications touched an intraday high of Rs 90.65 and an intraday low of Rs 86.25. At 14:43 hrs the share was quoting at Rs 89.20, down Rs 2.90, or 3.15%. It was trading with volumes of 2,099,366 shares.

• Reliance Power touched an intraday high of Rs 100.95 and an intraday low of Rs 98. At 14:44 hrs the share was quoting at Rs 98.60, down Rs 4.80, or 4.64%. It was trading with volumes of 774,424 shares.

• Reliance Broadcast Network touched an intraday high of Rs 86.75 and an intraday low of Rs 83.15. At 14:43 hrs the share was quoting at Rs 84.85, down Rs 3.10, or 3.52%. It was trading with volumes of 47,768 shares. Reliance MediaWorks touched a 52-week low of Rs 99.25. At 14:42 hrs the share was quoting at Rs 101.50, down Rs 3.80, or 3.61%. It was trading with volumes of 143,865 shares

Cont……• Type Publicmumbai, Maharashtra, India• Industry Telecommunications• Key people Anil Ambani

(Chairman)Satish Seth(Visiting Consultant)

• Products Wireless

TelephoneInternetTelevisionData CardsRecharge VouchersVC

• Revenue $4.774 billion (2010)• Net income $1.061 billion (2010)

Cont…..• Total assets• $20.559 billion (2010) • Total equity • $9.776 billion (2010) • Employees• 30,974 (2010)• Parent• Reliance Anil Dhirubhai Ambani Group• Subsidiaries• Reliance Telecom Limited

Reliance Globalcom LimitedReliance Tech ServicesReliance Communications Infrastructure Limited (RCIL)Reliance Big TV LimitedReliance Infratel Limited

• Website Reliance Communications

Reliance Telecommunication Limited

• Reliance Communications Limited (commonly called RCOM) is a major Indian telecommunication company headquartered in Navi Mumbai, India. It is the 16th largest operator in the world with more than 128 million subscribers. RCOM, founded by Dhirubhai H Ambani (1932–2002), is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess of 64,000 crore (US$13.6 billion), cash flows of 13,000 crore ($2.8 billion), and a net profit of 8,400 crore ($1.8 billion). The Equity Shares of RCOM are listed on Bombay Stock Exchange Limited and National Stock Exchange Limited. The Global Depository Receipts and Foreign Currency Convertible Bonds are listed on Luxembourg Stock Exchange and Singapore Stock Exchange respectively.

Main subsidiaries

• Reliance Telecommunication Limited (RTL)• Reliance Globalcom• Reliance Internet Data Center (RIDC)

Acquisition

• FLAG Telecom • Yipes ethernet service • Digicable

Main objectives• 1. To carry on and undertake the business of finance, investment, loan and guarantee company and to

invest in acquire, subscribe, purchase, hold, sell, divest or otherwise deal in securities, shares, stocks, equity linked securities, debentures, debenture stock, bonds, commercial papers, acknowledgements, deposits, notes, obligations, futures, calls, derivatives, currencies and securities of any kind whatsoever, whether issued or guaranteed by any person, company, firm, body, trust, entity, government, state, dominion sovereign, ruler, commissioner, public body or authority, supreme, municipal, local or otherwise, whether in India or abroad. The Company will not carry on any activity as per Section 45 1A of RBI Act, 1934.

• 2. To carry on and undertake the business of financial services like financial restructuring / reorganization, investment counselling, portfolio management and all activities and facilities of every description including all those capable of being provided by bankers, stockbrokers, merchantbankers, investment bankers, portfolio managers, trustees, agents, advisors, consultants, providing other financial or related services and to carry on the activities of hire-purchase, leasing and to finance lease operations of all kinds, purchasing, selling, hiring or letting on hire all kinds of plant and machinery and equipment and to assist in financing of all and every kind and description of hire- purchase or deferred payment or similar transactions and to subsidize, finance or assist in subsidizing or financing the sale and maintenance of any goods, articles or commodities of all and every kind and description upon any terms whatsoever and to purchase or otherwise deal in all forms of movable property including plant and machinery, equipments, ships, aircrafts, automobiles, computers, and all consumer, commercial, medical and industrial items with or without security and to lease or otherwise deal with them including resale thereof, regardless of whether the property purchased and leased is new and/or used and from India or abroad.

Cont………..• . To carry on and undertake the business of acting as agent of any

person, public or private sector enterprises, financial institutions, banks, central government and state governments and to do financial research, design and preparation of feasibility study reports, project reports and appraisal report in India and abroad.

• 4. To carry on, manage, supervise and control the business of telecommunication, infrastructure, telecommunication system, telecommunication network, and telecommunication services of all kinds including and not limited to setting up telephone exchange, coaxial stations, telecommunication lines and cables of every form and description, transmission, emission, reception through various forms, maintaining and operating all types of telecommunication service and providing data programmes and data bases for telecommunication.

Business strategy

Networking

Cont………..

Products & Brands

• Petroleum Refining and Marketing business • Petrochemicals business • Oil and Gas Exploration & Production business • The Company is:• Largest producer of Polyester Fibre and Yarn • 5th largest producer of Paraxylene (PX) • 5th largest producer of Polypropylene (PP) • 8th largest producer of Purified Terephthalic Acid

(PTA) and Mono Ethylene Glycol (MEG)

Cont……..

• 3G and BWA• Technology• Currently Reliance is only operator who

provides up to 28 Mbps speed in india with its 3G MIMO technology

Corporate responsibility

• We care about : 1. Quality

2. Research & Development3. Health, Safety & Environment4. Human Resource Development5. Energy Conservation6. Corporate Citizenship

FINANCIAL PERFORMANCE

Competitors

• Reliance Communications competes with 14 other mobile operators throughout India. They are Aircel, Airtel, BSNL, Idea, Loop Mobile, MTNL, MTS, Ping Mobile, S Tel, Tata DoCoMo, Tata Indicom, Uninor, Videocon, Virgin Mobile(GSM & CDMA) and Vodafone.

2G Spectrum Scam Arrests and Charge sheets

• On February 2, 2011, the CBI arrested former Telecommunications Union Minister A.Raja. The CBI also arrested R.K. Chandolia, Raja's personal aide, and Siddharth Behura, the former Telecom Secretary. Both A.Raja and R.K Chandolia are heard in conversation with Niira Radia in the released Radia tapes.

• On February 8, 2011, the CBI arrested Mumbai based Dynamix Balwas (DB) group managing director Shahid Usman Balwa in connection with the 2G spectrum allocation scam. The CBI has evidence from the Income Tax department that Shahid Usman Balwa, considered close to A. Raja, was instrumental in channelling the kickbacks allegedly received by the former telecom minister.

• On March 29, 2011, in Delhi, the CBI arrested Asif Balwa (younger brother of the arrested former Managing Director of DB-Etisalat Group, Shahid Balwa) and Rajeev Agarwal for their alleged involvement in money transfer to the Dravida Munnetra Kazhagam's (DMK) Kalaignar TV channel.

• On April 2, 2011, the CBI filed its first 80,000 page chargesheet in the 2G spectrum scam before a Special Court in Delhi naming nine individuals and three companies. It said the wrongful acts of the accused deprived the government exchequer of possible revenues amounting to INR Rs 30,985 crore (USD $ 6,983,322,233).

The accused include the following individuals:

• A. Raja, arrested former Telecom minister 2) Siddharth Behura, arrested former Telecom Secretary 3) R.K. Chandolia, A. Raja's arrested former personal secretary 4) Shahid Usman Balwa, arrested former Director of Swan Telecom (now Etisalat DB) 5) Sanjay Chandra, Managing Director of Unitech Ltd and Unitech Wireless 6) Gautam Doshi, Group MD, Reliance Anil Dhirubhai Ambani Group 7) Hari Nair, Senior Vice-President, Reliance Anil Dhirubhai Ambani Group 8) Surendra Pipara, Senior Vice-President, Reliance Anil Dhirubhai Ambani Group and Reliance Telecom Ltd 9) Vinod Goenka, Director, Swan Telecom and Managing Director of DB Realty

• The three accused companies are: 1) Swan Telecom 2) Unitech Wireless 3) Reliance Telecom.

• In the first chargesheet, the CBI had named lobbyist Niira Radia and 124 others as witnesses.

SWOT analysis

• STRENGTHS • Attractive valuation• Clear cut strategy with five investment poles• Absence of capital gains taxes in Luxembourg• SICAR structures for venture investments• WEAKNESSES• Limited visibility on private equity • participationsUncertainty on the allocation of the • cash position • Predictability

Cont……..

• OPPORTUNITIES• Net cash position after the sale of Cegedel • enables the company to proceed with

acquisitions at lower prices.• THREATS• Large part of the portfolio is sensitive to a

business cycle downturn• Reinvestment risk

FUTURE PROSPECTUS

• We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India.

• We will offer unparalleled value to create customer delight and enhance business productivity.

• We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.”

Conclusion

• Increase in the debts and liabilities of the company from the year 2010 to 2011

• Share capital of the company remain same • Total reserves are decreasing