CORPORATE GOVERNANCE

PRACTICES
CORPORATE GOVERNANCE @
RELIANCE : CLAIMED

Source : http://www.ril.com/html/aboutus/corporate_governance.html
INSTANCES OF QUESTIONABLE CG
PRACTICES
INDEPENDENT DIRECTORS
……REALLY?
| Independent director means a non-executive director,
who apart from his remuneration, does not have any
material pecuniary relationship with the company

| 3 Independent Directors of Reliance Industries Ltd

(RIL) board – D. V.Kapur, S. Venkitaramanan and
Y.P.Trivedi – or their relatives have had pecuniary
relationship with the company and its associate
companies like Reliance Capital and Reliance
communication
DISCLOSURES ??
| Mukesh Ambani held Rs 50 crores of sweat equity in
Reliance communication …which was not disclosed
| In spite of that in the 2004 annual report of RIL the
board had signed a statement under the statutory section
on CG that “None of the transaction with any of the
related parties were in conflict with the interest of
the company”
| Did the Board recognize that his personal interest in
Reliance Communication might be in conflict with the
interest of Reliance Industries?
DISCLOSURE NORMS??
Indian Companies Act and Accounting Standards 18 :
Checks & Balances
DISCLOSURE NORMS??
Indian Companies Act and Accounting Standards 18 :
Checks & Balances
RELIANCE COMMUNICATION –
CALL MASKING
| Reliance Communication accused of violating license
norms
| Between May and September 2004 allegedly passed off
incoming international calls as locals
| This was done in order to avoid payment of a fee called
Access Deficit Charge to BSNL
| The company was ordered to pay Rs 150 crores in
penalty for this violation
SHAREHOLDING PATTER OF RIL
IN RELIANCE COMMUNICATION

To be discussed
WEB OF CROSS-HOLDINGS

To be discussed
RIL & RNRL : MERGER

| Announced 4:1 merger ratio, the equity dilution will

be 14.5 per cent. The shareholding of ADAG in R-
Power Power will go up from 40 per cent to around
42 per cent in the combined entity

| Traders were upset at what they reckon is an

attempt by promoters to place their interests ahead
of minority shareholders

We do not understand the financials

reasons for the same
IN CONCLUSION
 THANK YOU

| Abhisek (G10002)
| Anupam Aloke (G10011)

| Hussein H. Rassiwalla(G10020 )

| Mohd Junaid(G10029)

| Prashant Sharma(G10038)

| Santosh Kumar Singh(G10047)

| Tarun Pandey (G10056).