32533320 Project Report on Financial Analysis of Reliance Industry Limited

7/25/2019 32533320 Project Report on Financial Analysis of Reliance Industry Limited

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A PROJECT REPORT ON

Financial analysis ofReliance Industries

Limited

Submitted by :

ARINDAM BARMAN

Registration Number : 5!"5#5$

A project report submitted in partial fulfillment of the requirements

for

Master of Business Administration (MBA)

of

Sikkim Manipal University, INDIA

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ST%DENT DEC&ARATION

I ereby de!"are tat te #ro$e!t re#ort entit"ed

FINANCIAL ANALYSIS OF RELIANCE INDUSTRY LIMITED

submitted in #artia" %u"%i""ment o% te re&uirements %or te degree

o%

Masters of Business A!inistration "MBA#

'o

Si$$i!% Mani&a' Uni(ersit) "SMU#, Inia,

is my origina" (or) and not submitted %or te a(ard o% any oter degree* di#"oma* %e""o(si#* orany oter simi"ar tit"e or #ri+es

,"a!e - Banga"ore ARINDAM BARMAN/Date - SM Reg. No- 520854257.

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E-e*uti(e Su!!ar)

The pr!e"t assi#ne$ t me %as t st&$y the 'nan"ial health ( any

r#ani)atin in the "&ntry* I $e"i$e$ t "hse ne ( In$ia+s lar#est

"mpanies in a se"tr that has rapi$ly #r%n ver the last (e% years an$ a

"mpany %here lea$ers like Mr* Dhir&hai Amani, r rather, a "mpany that

has een ma$e Mr* Dhir&hai Amani*

Thrh this reprt, I try an$ analy)e the 'nan"ial envirnment in %hi"h

Relian"e In$&stry Limite$ is peratin#*

Thrh a thrh 'nan"ial analysis, my aim t &n$erstan$ the 'nan"ial

(a"trs is in-&en"in# the "mpany an$ its $e"isin makin#* Later, I try an$

eval&ate the vari&s ratis t appre"iate their impa"t n "mpany+s

per(rman"e ver the last (&r years

The 'nan"ial statements ( last (&r years are i$enti'e$, st&$ie$ an$

interprete$ in li#ht ( "mpany+s per(rman"e* Criti"al $e"isins (

$istri&tin# $ivi$en$s, Iss&e ( n&s Deent&res an$ ther "&rrent ne%s are

analy)e$ an$ their impa"t n the ttm line ( the "mpany is assesse$*

Finally, I st&$y rati analysis, (&n$ -% analysis an$ "ash -% analysis ( the

"mpany t analy)in# the 'nan"ial psitin ( the "mpany in last (&r

years*

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Introu*tion

The st&$y ( 'nan"ial statement is prepare$ (r the

p&rpse ( presentin# a peri$i"al revie% r reprt y the

mana#ement ( an$ $eal %ith the state ( investment in &siness

an$ res&lt a"hieve$ $&rin# the peri$ &n$er revie%* They re-e"t

the 'nan"ial psitin an$ peratin# stren#ths r %eaknesses (

the "n"ern y prperly estalishin# relatinship et%een the

items ( the alan"e sheet an$ remve statements*

Finan"ial statement analysis "an e &n$er taken either y

the mana#ement ( the 'rm r y the &tsi$e parties* The nat&re

( analysis $e(ers $epen$in# &pn the p&rpse ( the analysis*

The analyst is ale t say h% %ell the 'rm "&l$ &tili)e the

res&r"e ( the s"iety in #eneratin# #$s an$ servi"es* T&rnver

ratis are the est tls in $e"i$in# these aspe"ts*

.en"e it is verall respnsiility ( the mana#ement t see

that the res&r"e ( the 'rm is &se$ mst e/"iently an$

e0e"tively an$ that the 'rm+s 'nan"ial psitin is #$* Finan"ial

statement analysis $es in$i"ate %hat "an e e1pe"te$ in (&t&re

(rm the 'rm*

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Meanin of Finan*ia' State!ent

+inancial statements refer to such statements which contains financial information about an

enterprise. They report profitability and the financial position of the business at the end of

accounting period. The team financial statement includes at least two statements which the

accountant prepares at the end of an accounting period. The two statements are -

The alance /heet

0rofit nd %oss ccount

They pro!ide some e$tremely useful information to the e$tent that balance /heet mirrors the

financial position on a particular date in terms of the structure of assets, liabilities and owners

euity, and so on and the 0rofit and %oss account shows the results of operations during a certain

period of time in terms of the re!enues obtained and the cost incurred during the year. Thus the

financial statement pro!ides a summaried !iew of financial position and operations of a firm

Meanin of Finan*ia' Ana')sis

The first task of financial analysis is to select the information rele!ant to the decision under

consideration to the total information contained in the financial statement. The second step is to

arrange the information in a way to highlight significant relationship. The final step is

interpretation and drawing of inference and conclusions. +inancial statement is the process of

selection, relation and e!aluation.


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Features of Finan*ia' Ana')sis

To present a comple$ data contained in the financial statement in simple and

understandable form.

To classify the items contained in the financial statement incon!enient and rational

groups.

To make comparison between !arious groups to draw !arious

conclusions.

.ur&ose of Ana')sis of finan*ia' state!ents

To know the earning capacity or profitability.

To know the sol!ency.

To know the financial strengths.

To know the capability of payment of interest & di!idends.

To make comparati!e study with other firms.

To know the trend of business.

To know the efficiency of mgt. To pro!ide useful information to mgt

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.ro*eure of Finan*ia' State!ent Ana')sis

The following procedure is adopted for the analysis and interpretation of financial

statements-

The analyst should acuaint himself with principles and postulated of accounting. 6e

should know the plans and policies of the managements that he may be able to find out

whether these plans are properly e$ecuted or not.

The e$tent of analysis should be determined so that the sphere of work may be decided.

If the aim is find out. 7arning capacity of the enterprise then analysis of income statement

will be undertaken. 8n the other hand, if financial position is to be studied then balance

sheet analysis will be necessary.

The financial data be gi!en in statement should be recognied and rearranged. It will

in!ol!e the grouping similar data under same heads. reaking down of indi!idual

components of statement according to nature. The data is reduced to a standard form.

relationship is established among financial statements with the help of tools & techniues

of analysis such as ratios, trends, common sie, fund flow etc. The information is interpreted in a simple and understandable way. The significance and

utility of financial data is e$plained for help indecision making.

The conclusions drawn from interpretation are presented to the management in the form

of reports.

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nalying financial statements in!ol!es e!aluating three characteristics of a company its

liuidity, its profitability, and its insol!ency. short-term creditor, such as a bank, is primarily

interested in the ability of the borrower to pay obligations when they come due. The liuidity of

the borrower is e$tremely important in e!aluating the safety of a loan. long-term creditor, such

as a bondholder, howe!er, looks to profitability and sol!ency measures that indicate the

company"s ability to sur!i!e o!er a long period of time. %ong-term creditors consider such

measures as the amount of debt in the company"s capital structure and its ability to meet interest

payments. /imilarly, stockholders are interested in the profitability and sol!ency of the company.

They want to assess the likelihood of di!idends and the growth potential of the stock)

9omparison can be made on a number of different bases.

+ollowing are the three illustrations

/0 Intra%*o!&an) 1asis0

This basis compares an item or financial relationship within a company in the current year with

the same item or relationship in one or more prior years. +or e$ample, /ears, :oebuck and 9o.

can compare its cash balance at the end of the current year with last year"s balance to find the

amount of the increase or decrease. %ikewise, /ears can compare the percentage of cash to

current assets at the end of the current year with the percentage in one or more prior years. Intra-

company comparisons are useful in detecting changes in financial relationships and significant

trends.

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20 Inustr) a(eraes0

This basis compares an item or financial relationship of a company with industry a!erages ;or

norms< published by financial ratings organiations such as =un & radstreet, >oody"s and

/tandard & 0oor"s. +or e$ample, /ears"s net income can be compared with the a!erage net

income of all companies in the retail chain-store industry. 9omparisons with industry a!erages

pro!ide information as to a company"s relati!e performance within the industry.

1. Inter*o!&an) 1asis0

This basis compares an item or financial relationship of one company with the same item or

relationship in one or more competing companies. The comparisons are made on the basis of the

published financial statements of the indi!idual companies. +or e$ample, /ears"s total sales for

the year can be compared with the total sales of its ma#or competitors such as ?mart and @al-

>art. Intercompany comparisons are useful in determining a company"s competiti!e position.

Too's of Finan*ia' State!ent Ana')sis

Aarious tools are used to e!aluate the significance of financial statement data. Three commonly

used tools are these

Ratio Ana')sis

Funs F'o+ Ana')sis

Cas3 F'o+ Ana')sis

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Meanin of Ratio Ana')sis4

:atio analysis is the method or process by which the relationship of items or group of items in

the financial statement are computed, determined and presented.

:atio analysis is an attempt to deri!e uantitati!e measure or guides concerning the financial

health and profitability of business enterprises. :atio analysis can be used both in trend and static

analysis. There are se!eral ratios at the disposal of an analyst but their group of ratio he would

prefer depends on the purpose and the ob#ecti!e of analysis.

@hile a detailed e$planation of ratio analysis is beyond the scope of this section, we will focus

on a techniue, which is easy to use. It can pro!ide you with a !aluable in!estment analysis tool.

This techniue is called +ross,se+tiona- ana-ysis. 9ross-sectional analysis compares financial

ratios of se!eral companies from the same industry. :atio analysis can pro!ide !aluable

information about a companyBs financial health. financial ratio measures a companyBs

performance in a specific area. +or e$ample, you could use a ratio of a companyBs debt to its

euity to measure a companyBs le!erage. y comparing the le!erage ratios of two companies,

you can determine which company uses greater debt in the conduct of its business. company

whose le!erage ratio is higher than a competitorBs has more debt per euity. Dou can use this

information to make a #udgment as to which company is a better in!estment risk.

6owe!er, you must be careful not to place too much importance on one ratio. Dou obtain a better

indication of the direction in which a company is mo!ing when se!eral ratios are taken as a

group.

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.re%Re6uisites to Ratio Ana')sis4

In order to use the ratio analysis as de!ice to make purposeful conclusions, there are certain pre-

reuisites, which must be taken care of. It may be noted that these prereuisites are not

conditions for calculations for meaningful conclusions. The accounting figures are inacti!e in

them & can be used for any ratio but meaningful & correct interpretation & conclusion can be

arri!ed at only if the following points are well considered.

1 The dates of different financial statements from where data is taken must be same.

2 If possible, only audited financial statements should be considered, otherwise there must be

sufficient e!idence that the data is correct.

3 ccounting policies followed by different firms must be same in case of cross section analysis

otherwise the results of the ratio analysis would be distorted.

4 8ne ratio may not throw light on any performance of the firm. Therefore, a group of ratios must

be preferred. This will be conducti!e to counter checks.

' %ast but not least, the analyst must find out that the two figures being used to calculate a ratio

must be related to each other, otherwise there is no purpose of calculating a ratio.

GUIELINES OR PRE!AUTIONS FOR USE OF RATIOS:

The calculation of ratios may not be a difficult task but their use is not easy.

+ollowing guidelines or factors may be kept in mind while interpreting !arious ratios are

ccuracy of financial statements

8b#ecti!e or purpose of analysis

/election of ratios

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firm. The liuidity ratio is particularly useful in credit analysis by bank & other suppliers of short

term loans.

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'# Lon(&term sol)ency: &

:atio analysis is eually useful for assessing the long-term financial !iability of a firm. This

respect of the financial position of a borrower is of concern to the long-term creditors, security

analyst & the present & potential owners of a business. The long-term sol!ency is measured by

the le!erageG capital structure & profitability ratio :atio analysis s that focus on earning power &

operating efficiency.

:atio analysis re!eals the strength & weaknesses of a firm in this respect. The le!erage ratios, for

instance, will indicate whether a firm has a reasonable proportion of !arious sources of finance

or if it is hea!ily loaded with debt in which case its sol!ency is e$posed to serious strain.

/imilarly the !arious profitability ratios would re!eal whether or not the firm is able to offer

adeuate return to its owners consistent with the risk in!ol!ed.

*# O%eratin( e+ciency:

Det another dimension of the useful of the ratio analysis, rele!ant from the !iewpoint of

management, is that it throws light on the degree of efficiency in management & utiliation of its

assets. The !arious acti!ity ratios measure this kind of operational efficiency. In fact, the

sol!ency of a firm is, in the ultimate analysis, dependent upon the sales re!enues generated by

the use of its assets- total as well as its components.

,# O)erall %ro-ta.ility:

Enlike the outsides parties, which are interested in one aspect of the financial position of a firm,

the management is constantly concerned about o!erall profitability of the enterprise. That is, they

are concerned about the ability of the firm to meets its short term as well as long term obligations

to its creditors, to ensure a reasonable return to its owners & secure optimum utiliation of the

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assets of the firm. This is possible if an integrated !iew is taken & all the ratios are considered

together.

/# Inter -rm com%arison:

:atio analysis not only throws light on the financial position of firm but also ser!es as a

stepping-stone to remedial measures. This is made possible due to inter firm comparison &

comparison with the industry a!erages. single figure of a particular ratio is meaningless unless

it is related to some standard or norm. 8ne of the popular techniues is to compare the ratios of a

firm with the industry a!erage. It should be reasonably e$pected that the performance of a firm

should be in broad conformity with that of the industry to which it belongs. n inter firm

comparison would demonstrate the firms position !ice-!ersa its competitors. If the results are at

!ariance either with the industry a!erage or with those of the competitors, the firm can seek to

identify the probable reasons & in light, take remedial measures.

0# Trend analysis:

+inally, ratio analysis enables a firm to take the time dimension into account. In other words,

whether the financial position of a firm is impro!ing or deteriorating o!er the years. This is

made possible by the use of trend analysis. The significance of the trend analysis of ratio lies in

the fact that the analysts can know the direction of mo!ement, that is, whether the mo!ement is

fa!orable or unfa!orable. +or e$ample, the ratio may be low as compared to the norm but the

trend may be upward. 8n the other hand, though the present le!el may be satisfactory but the

trend may be a declining one.

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A(antaes of Ratio Ana')sis4

+inancial ratios are essentially concerned with the identification of significant accounting data

relationships, which gi!e the decision-maker insights into the financial performance of a

company. The ad!antages of ratio analysis can be summaried as follows

:atios facilitate conducting trend analysis, which is important for decision making

and forecasting.

:atio analysis helps in the assessment of the liuidity, operating efficiency,

profitability and sol!ency of a firm.

:atio analysis pro!ides a basis for both intra-firm as well as inter-firm comparisons.

The comparison of actual ratios with base year ratios or standard ratios helps the

management analye the financial performance of the firm.

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Li!itations of Ratio Ana')sis4

:atio analysis has its limitations. These limitations are described below

"# Information %ro.lems

:atios reuire uantitati!e information for analysis but it is not decisi!e about analytical

output.

The figures in a set of accounts are likely to be at least se!eral months out of date, and so

might not gi!e a proper indication of the company"s current financial position.

@here historical cost con!ention is used, asset !aluations in the balance sheet could be

misleading. :atios based on this information will not be !ery useful for decision-making.

'# !om%arison of %erformance o)er time

@hen comparing performance o!er time, there is need to consider the changes in price.

The mo!ement in performance should be in line with the changes in price.

@hen comparing performance o!er time, there is need to consider the changes in

technology. The mo!ement in performance should be in line with the changes in technology.

9hanges in accounting policy may affect the comparison of results between different

accounting years as misleading.

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*# Inter&-rm com%arison

9ompanies may ha!e different capital structures and to make comparison of performance

when one is all euity financed and another is a geared company it may not be a good

analysis.

/electi!e application of go!ernment incenti!es to !arious companies may also distort

intercompany comparison. 9omparing the performance of two enterprises may be misleading.

Inter-firm comparison may not be useful unless the firms compared are of the same sie

and age, and employ similar production methods and accounting practices.

7!en within a company, comparisons can be distorted by changes in the price le!el.

:atios pro!ide only uantitati!e information, not ualitati!e information.

:atios are calculated on the basis of past financial statements. They do not indicate future

trends and they do not consider economic conditions.7!aluation of efficiency

7ffecti!e tool

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CLASSIFICATIONS OF RATIOS4

The use of ratio analysis is not confined to financial manager only. There are

different parties interested in the ratio analysis for knowing the financial position of a firm for

different purposes. Aarious accounting ratios can be classified as follows

1. Traditional 9lassification

2. +unctional 9lassification

2* /ignificance ratios

"1Traditional !lassi-cation

It includes the following.

alance sheet ;or< position statement ratio They deal with the relationship between two

balance sheet items, e.g. the ratio of current assets to current liabilities etc., both the items

must, howe!er, pertain to the same balance sheet.

0rofit & loss account ;or< re!enue statement ratios These ratios deal with the relationship

between two profit & loss account items, e.g. the ratio of gross profit to sales etc.,

9omposite ;or< inter statement ratios These ratios e$hibit the relation between a profit &

loss account or income statement item and a balance sheet items, e.g. stock turno!er ratio,

or the ratio of total assets to sales.

'1 Functional !lassi-cation

These include liuidity ratios, long term sol!ency and le!erage ratios, acti!ity

ratios and profitability ratios.

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*1 Si(ni-cance ratios

/ome ratios are important than others and the firm may classify them as primary

and secondary ratios. The primary ratio is one, which is of the prime importance to a concern.

The other ratios that support the primary ratio are called secondary ratios.

IN T2E 3IE4 OF FUN!TIONAL !LASSIFI!ATION T2E RATIOS

ARE

3* %iuidity ratio

2. %e!erage ratio

3. cti!ity ratio

4. 0rofitability ratio

"1 LI5UIITY RATIOS

%iuidity refers to the ability of a concern to meet its current obligations as &

when there becomes due. The short term obligations of a firm can be met only when there are

sufficient liuid assets. The short term obligations are met by realiing amounts from current,

floating ;or< circulating assets The current assets should either be calculated liuid ;or< near

liuidity. They should be con!ertible into cash for paying obligations of short term nature. The

sufficiency ;or< insufficiency of current assets should be assessed by comparing them with short-

term current liabilities. If current assets can pay off current liabilities, then liuidity position will

be satisfactory.

To measure the liuidity of a firm the following ratios can be calculated

9urrent ratio

Huick ;or< cid-test ;or< %iuid ratio

bsolute liuid ratio ;or< 9ash position ratio

2(


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6a7 !URRENT RATIO:

9urrent ratio may be defined as the relationship between current assets

and current liabilities. This ratio also known as @orking capital ratio is a measure of generalliuidity and is most widely used to make the analysis of a short-term financial position ;orethod of =ata 9ollection

Se+ondary Data: Through the internet and published data

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Co!&an) .rofi'e

The :eliance group, founded by D*irub*ai 3 Ambani ?,!!@, is India"s largest pri!ate

sector enterprise, with businesses in the energy and material !alue chain. The flagship company,

:eliance Industries %imited, is a +ortune Mlobal '55 company and is the largest pri!ate sector

company in India. The chairman of the company is Mu6es* Ambani)

The company is India"s largest 0etro+*emi+a- /irmand among the country"s largest companies

;along with the likes of Indian Oi- and Tata 1rou0


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Industries to the top slot in terms of market capitaliation is largely due to =hirubhaiBs ability to

manipulate the le!ers of a controlled economy to his ad!antage. Though the companyBs oil-

related operations form the core of its business, it has di!ersified its operations in recent years.

fter se!ere differences between the founderBs two sons, >ukesh mbaniand nil mbani, the

group was di!ided between them in 255(. In /eptember 255*, :eliance Industries was the only

Indian firm featured in the +orbesBs list of worldBs 155 most respected companies

Sto+6

ccording to the company website 1 out of e!ery 4 in!estors in India is a :eliance

shareholder.C. :eliance has more than 3 million shareholders, making it one of the worldBs most

widely held stocks. :eliance Industries %td, subseuent to its split in Qanuary 255( has continued

to grow. :eliance companies ha!e been among the best performing in the Indian stock market.

Produ+ts

:eliance Industries %imited has a wide range of products from petroleum products,

petrochemicals, to garments;under the brand name of Aimal


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started on pril 2, 255. s of the end of 3rd uarter of 255-2515, gas production from the ?M

=( ramped up to (5 >>/9>=.

Subsidiaries

>a#or /ubsidiaries & ssociates

:eliance 0etroleum &imited edicine, >olecular >edicine, Ko!el Therapeutics, io-fuels, 0lant

iotechnology and Industrial iotechnology.

:eliance Industrial Infrastructure %imited


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:eliance %ogistics


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8n 255* 8ct *, nil mbaniBs :eliance Katural :esources took :eliance Industries to the

ombay 6igh 9ourtto uphold a memorandum of understanding that said :I% will supply the

natural gas at P2.34 per million ritish thermal unitsto nil mbani.

Re-ian+e Retai-

:eliance :etailis the retail business wing of the :eliance business. >any brands like :eliance

+resh, :eliance +ootprint, :eliance Time 8ut, :eliance =igital, :eliance @ellness, :eliance

Trends, :eliance utoRone, :eliance /uper, :eliance >art, :eliance i/tore, :eliance 6ome

?itchens, and :eliance Qewel come under the :eliance :etailbrand. :eliance saw opportunity in

retailing chicken, mutton and other meat products ;halal and non-halal< through one of its retail

arms called =elight Kon Aeg. 8ne of the =elight outlets has been shut down due to protest by

anti-animal cruelty acti!ists at Mandhi Kagar, =elhi who want :eliance to close its non-!eg food

marketing.

En.ironmenta- re+ord

:eliance Industry is the world"s largest polyester producer and as a result one of the largest

producers of polyester waste in the world. In order to deal with this large amount of waste they

had to create a way to recycle the waste. They operate the largest polyester recycling center that

uses the polyester waste as a filling and stuffing. They use this process to de!elop a strong

recycling process which won them a reward in the Team 7$cellence competition)

:eliance Industries backed a conference on en!ironmental awareness in Kew =elhi in 255(. The

conference was run by the sia 0acific Qurist ssociation in partnership with the >inistry of

7n!ironment & +orests, Mo!t. of India and the >aharashtra 0ollution 9ontrol oard. The

conference was to help bring about new ideas and articles on !arious aspects of en!ironmental

'4
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protection in the region. >aharashtra 0ollution 9ontrol oard in!ited !arious industries

complied with the pollution control norms to take acti!e part in the conference and to support as

a sponsor. The conference pro!ed effecti!e as a way to promote en!ironmental concern in the

area.

A;ards Re+ognition

International :efiner of the Dear in 255' at the 23rd nnual 6artBs @orld :efining and

+uels 9onference.

A;ards /or managers

>ukesh =. mbani recei!ed the Enited /tates of merica-India usiness 9ouncil

;E/I9< leadership award for Mlobal Aision 255) in @ashington in Quly 255).

>ukesh =. mbani was conferred the sia /ociety %eadership ward by the sia

/ociety, @ashington, E/, >ay 2554.

>ukesh =. mbani ranked 13th in siaBs 0ower 2' list of The >ost 0owerful 0eople in

usiness published by +ortune magaine, ugust 2554.

>ukesh =. mbani is 7conomic Timesusiness %eader of the Dear.

''
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Current *o!&osition of t3e Boar anCateor) of Dire*tors are as Fo''o+s4

"Between my past, the present and the future, there is one common Factor:

Relationship and Trust. This is the foundation of our growth."

S3ri D3iru13ai H0 A!1ani

airman Re"ian!e :rou#

De!ember 28* ;


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S3ri Mu$es3 D A!1ani

airman ? Managing

Dire!tor

S3ri Ni$3i' R0 Mes+ani S3ri Hita' R0 Mes+ani S3ri 0S07o3'i

@e!utie Dire!tor @e!utie Dire!tor @e!utie Dire!tor

S3ri .MS .rasa S3ri R0 Ra(i!o3an S3ri Ra!ni$'a' H0

@e!utie Dire!tor @e!utie Dire!tor A!1ani

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S3ri Mansin3 L0 S3ri Yoenra .0 Tri(ei Dr0 D0 80 7a&ur

B3a$ta

S3ri M0 .0 Moi .rof0 As3o$ Misra .rof0 Di&a$ C 9ain

MISSION : 8ISION

ontinuous"y innoate to remain ,artners in uman #rogress by arnessing s!ien!e ?te!no"ogy in te #etro!emi!a"s domainC

OUR MISSION

Be a g"oba""y #re%erred Business asso!iate (it res#onsib"e on!ern %or e!o"ogy* so!iety* andsta)eo"ders a"ueC.

8ALUES : ;UALITY .OLICY YOUR 8ALUES

Integrity* Res#e!t %or ,eo#"e* nity o% ,ur#ose* utside3in o!us* Agi"ity and InnoationC.

;UALITY .OLICY

Bare !ommitted to meet !ustomers re&uirements troug !ontinua" im#roement o% our &ua"itymanagement systems. Ee sa"" sustain organi+ationa" e!e""en!e troug isionary "eadersi#

and innoatie e%%ortsC.

'*


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Re'ian*e Inustries Ba'an*e S3eets fro! 2.75 >1*>>0.4> >;*881.>1 ;00*141.0>

a#ita" Eor) in ,rogress >*.;8 ;>*25;.14 20*5;>.;; 20*2>8.;8

Inentories ;0*;;.5; ;4*247.54 ;4*81>.72

Sundry Debtors 4*;>1.>2 1*712.42 >*227.58 4*57;.18

as and Ban) Ba"an!e 21.;5 10*2;0. 5>*2 4>*7>7.;8 17*;57.>; 1>*412.>5:;;? :;;? 5:;;@

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*# Pro%rietary Ratio:

'ormu-a:

Pro0rietors /und

Pro0rietary ratio Tota- assets

OR

S*are*o-ders /und

Pro0rietary ratio 'i4ed assets 9 +urrent assets

YEAR 2


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,# Stoc; 4or;in( !a%ital Ratio:

'ormu-a:

Sto+6

Sto+6 ;or6ing +a0ita- ratio 7or6ing Ca0ita-

YEAR 2


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LessB A""&m* Depre"iatin :,?>:*?2 :@,:


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Documents

32533320 Project Report on Financial Analysis of Reliance Industry Limited