Mukesh Ambani-controlled oil-to-retail-to-telecom conglomerate Reliance Industries Ltd (RIL) has been in the news for more than a week now since India’s second-largest company by revenue presented its annual report for the financial year 2017-2018. India’s richest person Mukesh Dhirubhai Ambani has decided to keep his salary unchanged for the tenth straight year at Rs 15 crore per annum, according to RIL’s annual report.
Mukesh Ambani’s salary
Mukesh Ambani’s salary has not been hiked for 10 consecutive years, in line with an initiative he took in 2009 with regard to over-compensation issues of chief executives, managing directors and chairpersons of India. However, Mukesh Ambani earns a considerable amount in the form of dividends distributed by Reliance Industries Ltd.
“Compensation of Mukesh D Ambani, Chairman and Managing Director, has been set at Rs 15 crore, reflecting his desire to continue to set a personal example for moderation in managerial compensation levels,” RIL said in a statement annual report for FY18.
Mukesh Ambani’s term ending?
Mukesh Ambani, 61, has been serving as a board member of Reliance Industries Ltd since 1977 and as the Chairman and Managing Director since 2002, after the demise of his father Dhirubhai Ambani. Reliance Industries Ltd (RIL) has sought shareholders’ approval to extend the term of Mukesh Ambani as CMD for another five years. The decision will be taken at the 41st Annual General Meeting (post-IPO) of Reliance Industries Ltd (RIL). Mukesh Ambani’s present term as the Chairman and Managing Director of Reliance Industries (RIL) is set to expire on 19 April 2019.
RIL 41st AGM date, time and venue: The 41st AGM which is scheduled to be held on 5 July 2018 and will begin at 11:00 am at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, near Bombay Hospital & Medical Research Centre, New Marine Lines, Mumbai 400020.
RIL’s Rs 20,000 crore fundraising
Reliance Industries Ltd has also sought shareholders’ approval to raise as much as Rs 20,000 crore in the current financial year through issuing non-convertible debentures on a private placement basis. Notably, these NCDs may be listed or unlisted, secured or unsecured and will be issued in multiple tranches or series.
RIL — the biggest?
Mukesh Ambani-led Reliance Industries Ltd is India’s second-largest company in terms of total turnover behind state-owned New Delhi headquartered oil marketer Indian Oil Corporation Ltd and also second-biggest firm by market capitalisation just behind the Tata Group’s cash cow Tata Consultancy Services (TCS). At Friday’s closing, Reliance Industries commands a market capitalisation of Rs 6,23,070.31 crore while TCS’ market capitalisation stood at Rs 6,69,311.51 crore, according to data available at Bombay Stock Exchange (BSE).
For the financial year ended 31 March 2018, Reliance Industries Ltd earned a total revenue of Rs 4,08,265 crore and the highest-ever consolidated net profit of Rs 36,080 crore. As at 31 March 2018, Mukesh Ambani-led Reliance Industries Ltd held a goodwill of Rs 5,813 crore and cash and cash equivalents worth Rs 4,255 crore.