Company LOGO

Study on financial Study on financial analysis Inanalysis In

RELIANCE RELIANCE COMMUNICATIONCOMMUNICATION

Name :CHARU SINGHRoll no. - 49

LOGOCOMPANY PROFILECOMPANY PROFILE

Reliance Dhirubhai Ambani GroupReliance Dhirubhai Ambani Group Reliance Dhirubhai Ambani is the flagship Reliance Dhirubhai Ambani is the flagship

companycompany. .

ADA group has a strong presence across a wide ADA group has a strong presence across a wide array of high-growth customer-facing-business array of high-growth customer-facing-business ranging from telecom and financial services, ranging from telecom and financial services, energy, power, media and entertainment to energy, power, media and entertainment to healthcare.healthcare.

LOGOADA BUSINESS UNITSADA BUSINESS UNITS

RELIANCE APEXRELIANCE APEX Reliance CommunicationReliance Communication Reliance Big EntertainmentReliance Big Entertainment ADLAB’S FILMSADLAB’S FILMS BIG 92.7 FMBIG 92.7 FM BIG TV ZAPAKZAPAK BIGADDABIGADDA BIG MOTION PICTURESBIG MOTION PICTURES BIG ANIMATION (Ani Rights Infomedia)BIG ANIMATION (Ani Rights Infomedia) BIG MUSIC AND HOME ENTERTAINMENTBIG MUSIC AND HOME ENTERTAINMENT

LOGO Reliance Reliance CommunicationCommunication

The flagship company of RelianeThe flagship company of Reliane

ADA Group ,Reliance ADA Group ,Reliance

Communications began Communications began

operations in 1999operations in 1999 Reliance Communications Reliance Communications

LimitedLimited is India’s largest integrated communications is India’s largest integrated communications

service provider in theservice provider in the

private sector with over 38 million individual enterprise, private sector with over 38 million individual enterprise,

and carrier customers.and carrier customers.

LOGOCurrent IssuesCurrent Issues

Financial Ratio AnalysisFinancial Ratio Analysis LIQUIDITY RATIOSLIQUIDITY RATIOS

Current ratioCurrent ratio = current assets / current liabilities = current assets / current liabilities

Quick ratio  Quick ratio  = (cash + marketable securities + net = (cash + marketable securities + net

receivables) / current liabilitireceivables) / current liabilitieses LEVERAGELEVERAGE

Debt-to-asset ratioDebt-to-asset ratio = total liabilities / total assets = total liabilities / total assets

Debt-equity ratioDebt-equity ratio = long-term debt / = long-term debt / shareholder's equityshareholder's equity

LOGOCONT….CONT….

RATES OF RETURNRATES OF RETURN

ROA = net income / total average assetsROA = net income / total average assets

ROE = net income / total stockholders equityROE = net income / total stockholders equity

LOGODATA ANALYSISDATA ANALYSIS

Analysis of the data by Ratio AnalysisAnalysis of the data by Ratio Analysis Ratio analysis is one of the techniques of financial Ratio analysis is one of the techniques of financial

analysis to evaluate the financial condition and analysis to evaluate the financial condition and performance of a business concern.performance of a business concern.

Research ApproachResearch ApproachDescriptive approachDescriptive approach

Primary Data Primary Data Structured snapshot.Structured snapshot.

Secondary Data Secondary Data JournalsJournals WebsitesWebsites News papersNews papers

LOGO Trend Analysis of Fixed Trend Analysis of Fixed InterpretationInterpretation

The fixed assets are increase in current year is The fixed assets are increase in current year is good for the company.good for the company.

It seems that the company has good future plans It seems that the company has good future plans

and they want to expand their  business so they and they want to expand their  business so they

have invested more and more funds in fixed have invested more and more funds in fixed

assets.assets.

Fixed assets are efficiently utilized by the Fixed assets are efficiently utilized by the

company due to which the profit of the company company due to which the profit of the company

is increasing every yearis increasing every year

LOGO Trend Analysis of total Trend Analysis of total current assetscurrent assets

The current assets is shows the cash liquidity of The current assets is shows the cash liquidity of the companythe company

Hear it is increase it year by year it means the Hear it is increase it year by year it means the company has sufficient liquidity forcompany has sufficient liquidity for

LOGO Trend Analysis of Total Trend Analysis of Total liabilitiesliabilities

The total liabilities is highest in 2005-06The total liabilities is highest in 2005-06

Liabilities is increasing rate it mean company has Liabilities is increasing rate it mean company has to developed businessto developed business

LOGORatio AnalysisRatio Analysis

Ratio analysis involves establishing a comparativRatio analysis involves establishing a comparative relationship between the components e relationship between the components

of financial statementsof financial statements.. It presents the financial statements into various It presents the financial statements into various

functional areasfunctional areas

LOGO classification of different classification of different categories of Ratiocategories of Ratio

Liquidity RatioLiquidity RatioLiquidity refers to the existence of the assets in the Liquidity refers to the existence of the assets in the cash or near cash form.cash or near cash form.

This ratio indicates the ability of the company to This ratio indicates the ability of the company to discharge the liabilities.discharge the liabilities.

Current RatioCurrent Ratio

This ratio shows the proportion of Current Assets to This ratio shows the proportion of Current Assets to Current LiabilitiesCurrent Liabilities

It’s a measure of short term financial strength of the It’s a measure of short term financial strength of the business.business.

It is also known as “Working Capital Ratio”It is also known as “Working Capital Ratio”

Current Ratio = Current Assets Current / liabilitiesCurrent Ratio = Current Assets Current / liabilities

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Quick RatioQuick RatioThis ratio is designed to show the amount of cash This ratio is designed to show the amount of cash available to meet immediate payments.available to meet immediate payments.

It is obtained by dividing the quick assets by It is obtained by dividing the quick assets by quick liabilities.quick liabilities.

Quick Ratio = Quick AssetsCurrent Quick Ratio = Quick AssetsCurrent LiabilitiesLiabilities

   Networking Captial Networking capital = Networking Captial Networking capital = Current Assets – Current Liabilities Current Assets – Current Liabilities InterpretationInterpretation

Quick Ratio

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  Profitability RatiosProfitability Ratios

The profitability ratios are calculated to measure thThe profitability ratios are calculated to measure th

e operating efficiency of the company.e operating efficiency of the company.

The profit margin ratio shows decline in current The profit margin ratio shows decline in current

year so that company should tray to increase profit year so that company should tray to increase profit

after tax.after tax.

Company should try its best to increase sales and Company should try its best to increase sales and

profit.profit.

LOGOFindingsFindings

Though the sales has been continuously Though the sales has been continuously increased from past 3 years but the proportionate increased from past 3 years but the proportionate expenditure is also rising so overall not expenditure is also rising so overall not making any huge effect on net profit of this making any huge effect on net profit of this company.company.

Company has enough cash in hand so that in any Company has enough cash in hand so that in any condition company can take any Financial condition company can take any Financial decision easily.decision easily.

GP Ratio shows how much efficient company is in GP Ratio shows how much efficient company is in Production.Production.

The total expenditure is near by 80% of total The total expenditure is near by 80% of total income in every year.income in every year.

LOGO  SUGGESTIONSUGGESTION

Company should try its best to increase sales and Company should try its best to increase sales and

profit.profit.

The profit margin ratio shows decline in current The profit margin ratio shows decline in current

year so that company should tray to increase year so that company should tray to increase

profit after tax.profit after tax.

Current ratio is very good it is 2.13:1 so company Current ratio is very good it is 2.13:1 so company

has fully utilize cash liquidity for business has fully utilize cash liquidity for business

development.development.

LOGOConclusionConclusion

Hear the in 2013 company has reinvest profit for Hear the in 2013 company has reinvest profit for

business expansion it is good shine for the company.business expansion it is good shine for the company.

Fixed assets are efficiently utilized by the company Fixed assets are efficiently utilized by the company

due to which the profit of the company is increasing due to which the profit of the company is increasing

every year.every year.

Liabilities is increasing rate it mean company has to Liabilities is increasing rate it mean company has to

developed business. And purchase raw material on developed business. And purchase raw material on

credit basis.credit basis.

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