LETTER TO SHAREHOLDERS

During the year, over 300 fuel retailing outlets were commissioned, with plans to re-commission the entire network of 1,400 outlets by the end of FY 2015- 16. Our focus is to ensure consistent and superior customer experience through several technology-enabled initiatives.

Our petcoke gasification project, designed to convert low-value petroleum coke into high value syngas is under execution. This will enable increasing self-sufficiency in energy at Jamnagar and also manufacture of other value-added chemicals. This project will also significantly reduce energy costs for Jamnagar refineries and make them competitive compared to the North American refineries which are benefiting from the shale gas revolution.

The steep decline in global energy prices and increased supply from the US led to sharp decline in petrochemical products and feedstock prices. Our integrated operations and diversified feedstock slate coupled with global cost competitiveness helped mitigate some of the risks.

RIL is creating significant capacities to further enhance its position amongst the world's largest producers of petrochemicals, with global scale capacities across the polymer and polyester chain. During the year, our focus was on creation of new capacities with several new plants being added and stabilizing the operations of the new facilities.

During the year, the operations of the new Polyester Filament Yarn (PFY) facility at Silvassa were stabilized and this strengthened our position as one of the global leaders in production of polyester fibre and yarn.

In the current year, RIL started India's largest Styrene Butadiene Rubber (SBR) Plant at Hazira with capacity of 150 KTPA. We also expanded our Poly- Butadiene Rubber (PBR) capacity. This will help in reaffirming our domestic leadership position in the elastomers segment.

RIL also started new 650 KTPA PET plant at Dahej, which is one of the world's largest bottle grade PET resin capacity at a single location. Our new PTA facility at Dahej with a capacity of 1,150 KTPA was also commissioned during the year. This increases Reliance's global capacity share to 4%.

Demand for petrochemicals is strongly linked to economic growth. India's expected economic growth bodes well for the growth of this business. We are bringing several new capacities on-stream in time to leverage the expected spurt in demand.

We are building one of the world's largest ethylene crackers taking advantage of refinery integration at Jamnagar. The new cracker will be in the top decile in terms of global cost competitiveness on an integrated basis among all the new crackers that are being built. With implementation of all the petrochemicals expansion projects, RIL is likely to be among the top 10 global petrochemicals producers in the world.

Our domestic gas production from the KG-D6 block was lower due to natural decline during the year. RIL and its JV partners stepped-up their efforts to augment production from the field through interventions like side-track wells and onshore terminal booster compressor to partly offset the natural decline in the field.

Development effort at the two CBM blocks in Sohagpur East and Sohagpur West is making significant progress. RIL expects first production from these two blocks in FY 2015-16.

Despite extremely challenging pricing environment especially in oil, the US shale business showed strong operational performance. During the CY 2014, gross JV production showed a 26% year on year growth.

Our Retail business sustained its growth momentum by generating record revenues of ` 17,640 crore. This is a growth of 31% CAGR over the last five years.

We also enhanced our presence with 2,621 stores spread across 12.5 million square feet in 200 cities. During the year, we had a net addition of 930 stores - at almost 18 new stores every week. We continue to strengthen our retail offerings to provide unmatched choice and affordable pricing. We are building on our leadership positions in all the format sectors of grocery, apparel and digital products.

Reliance Jio Infocomm's ambitious project to provide reliable (4G) high speed internet services with rich communication and digital services continues to gather speed. We have made significant progress including physical network infrastructure, systems and processes, sales and distribution network, applications and services and content. We are currently working with several strategic partners in deployment and testing activities currently underway.

During the year, we were successful in acquiring right to use spectrum in 800 MHz or 1800 MHz bands or both in 13 key circles across India. With this, Reliance Jio Infocomm has spectrum in either 800 MHz or 1800 MHz or both in 20 out of 22 circles in the country. This is in addition to the pan India spectrum in the 2300 MHz band.

RIL enjoys top-notch credit ratings as a result of its financial prudence and strong balance sheet. During the year RIL and its subsidiaries tied-up long-term facilities of nearly $ 6.5 billion. Our facilities with Export Credit Agencies were accorded 'Better than Sovereign' rating by all the ECAs – this was the first time that these agencies have accorded such a rating to any corporate in their history.

RIL has always been in the forefront of investing in India and its growth. During the year, as part of our largest capital expenditure cycle, we invested over
` 1,00,000 crore. This large investment spread across all our businesses will create sustained and significant value for our stakeholders.

Our work on Business Transformation and next-gen people practices continued at an accelerated pace. It is an integral part of Reliance's strategy to build competitive advantage and use technology for its advantage. We rolled out "Our Values & Behaviours" to guide Reliance and its talent through our vision and mission in the coming years.

As a responsible corporate citizen, Reliance serves the society, through Reliance Foundation, in the domains of Rural Transformation, Education, Healthcare, Urban Renewal and Arts, Culture and Heritage. Our relief and rehabilitation efforts in Kashmir and other areas affected by natural calamities earned significant respect. During the year, Reliance contributed ` 761 crore towards CSR activities, accounting for 3.35% of profit after tax.

I would like to thank all my colleagues across the country and the globe for their unflinching dedication, commitment and contribution to strengthening Reliance. We are looking forward to continue on our mission of generating sustained value for our stakeholders and India.

I would like to place on record my sincere appreciation to the Board of Directors for their guidance. I would like to express my gratitude to all our stakeholders for their continuing faith in Reliance.

With best wishes,

Sincerely
Mukesh D. Ambani
Chairman & Managing Director
April 17, 2015