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Reliance Intro
Indias largest private sector conglomerate
Annual turnover of US$ 44.6 bn
Profit of US$ 3.6 bn
Ranked at 264thposition in Fortune 500 ( as on 2009) and126thposition in Forbes Global 200 (as on 2010).
Founded by Dhirubhai Ambani in 1966
The entire group was divided between Anil and Mukesh in
2006. More than 3million shareholders ( 1 out of 4 investors in India
is a Reliance share holders)
For the fiscal year ending
in March 2010
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Businesses
Major Subsidiaries and associates
Reliance Petroleum
Reliance Life sciences
Reliance Industrial Infrastructure Limited
Reliance Institute of Life sciences
Reliance Logistics
Reliance Clinical Research Services
Reliance Solar
Relicord
Reliance Retail
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ACCOUNTING POLICY
Reliance Industries prepared its financial statements in
accordance with Indian Generally Accepted Accounting
Principles (GAAP).
y Use of Estimates
y Fixed Assets and Depreciation
y Investments
y Cash and Cash equivalents
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FIXEDASSETS(observations)
TANGIBLEASSETS INTANGIBLEASSETS Lease hold land
Free hold land
Buildings
Plant & Machinery
Electrical installations
Equipments
Furniture & Fixtures
Vehicles
Ships Aircraft & Helicopters
Technical Knowhow fees
Software
Others
Capital Work in Progress
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LIABILITIES(Observations)
Share capital
Reserves and Surplus
Secured Loans
Unsecured Loans
Deferred Tax Liability
Current Liabilities
Provisions
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DEPRECIATION
In reliance Industries Depreciation on fixed assets is
provided on Written Down Value method (WDV)
according to the Companies act 1956 over their usefullife.
For Fixed assets relating to SEZs Depreciation is
provided on Straight Line Method(SLM).
The depreciation amount is Rs 62,604.82 crores
y Due to increased depreciation in REFINING SEGMENT
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INVENTORIES
For Reliance this year is like a stabilizing year after an economic
meltdown, even it experienced shutdowns and permanent closures.
Cost of inventories comprises of
y Cost of purchasey Cost of conversion and
y Other costs incurred in bringing them to their respective present
location and condition
the turnover of inventory represents one of the primary resources
of revenue generation.
Inventories that are deducted in cash flow from operating activities
is Rs 12144.90 crores.
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DIVIDENDS
Paying dividends is not an expense; rather, it is the division of
an asset among shareholders.
The Company has transferred the unpaid or unclaimed dividends for the
financial years 1995-96 to 2001-02, to the Investor Education and
Protection Fund (the IEPF)(Under the companys act)
Reliance Industries Ltd has announced that the Board of Directors of the
Company has recommended a dividend of Rs. 7.00 (Rupees seven only)per fully paid-up equity share of Rs. 10/- each for second time in this year.
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RESERVESAND SURPLUS
The surplus drawn from profit and loss account has
decreased compared to last year and is Rs.4999.45 crores.
Total reserves of RIL as on 31st March 2010 is Rs
1,28,900.79 crores
y Revaluation Reserve
y Capital Reserve
y Capital Redemption Reservey Securities Premium Account
y Debentures Redemption Reserve
y General Reserve
y Profit and Loss account
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SECUREDAND UNSECURED LOANS
SECURED UNSECURED
Debentures
Term loans
Working Capital Loans
Long term
Short term
Deferred sales tax liability
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INCOME STATEMENT
There has been an increase in the profit in the year 2009 and
this increase is attributed to increase in the income from the
companys products and the services.
Income in the year 2009 was Rs. 144334 crores and income
in the year 2010 was Rs.198869 crores.
There is a considerable increase in manufacturing and other
expenses due to increase in the cost of electricity and power,
fuel and water, lease rents and exchange differences.
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BALANCE SHEET
Fixed assets as 31st march 2010 is 1,65,398.71cr and as
on 31st march 2009 is 1,69,386.89 cr.
There is an overall increase in both current assets and
current liabilities resulting in the increase in net current
assets ( Rs 19,010.37cr in 2009 to Rs 21,964.27cr in
2010).
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CASHFLOW
The net cash flows generated from operating activities is Rs.
20490.22 cr.
The net cash flows used in investing activities are Rs.18204.50 cr and the net cash flows used in financing
activities are Rs. 10999.60 cr.
The cash and cash equivalent at the end of the period is Rs
13462.65cr.
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REPORTS
Auditors:-The Auditors report states that, the audit is
in accordance with the auditing standards generally
accepted in India Directors:- The directors report of Reliance includes
information on Profit or Loss of its Subsidiaries, Capital
Expenditure and Dividend.
CorporateGovernance:- Information regarding
Directors and its Corporate governance policy
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