abhishek rai a-01 11005142

8/8/2019 Abhishek Rai a-01 11005142

http://slidepdf.com/reader/full/abhishek-rai-a-01-11005142 1/26

Topic: - Reliance Industries Limited.

Submitted to: - Submitted by:-

Miss. Sukhwinder kaur Name: - Abhishek Rai

Roll No.:- A-01

Reg. No. :-11005142

Course Code:-MGT515

8/8/2019 Abhishek Rai a-01 11005142


Introduction

Reliance Group

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, wmaterials value chain. Group's annual revenues are in excess of US$ 44 billion. The flagship company, RelianceGlobal 500 company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textil

pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, pe

exploration and production - to be fully integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining and marketing,

intermediates, plastics and chemicals), textiles, retail and special economic zones.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the wo

producers in the world in major petrochemical products.

Major Group Companies are Reliance Industries Limited (including main subsidiary Reliance Retail Limited) and

Limited

Milestones

Starting as a small textile company, Reliance has in its journney crossed several milestones to become a Fort

decades.

Reliance continues to cross newer & bigger milestones in its quest for what is known as "Growth is Life".

Recent business trends

8/8/2019 Abhishek Rai a-01 11005142


Reliance Industries Limited (RIL) today announced that it had acquired, through its wholly owned subsidInvestment and Holding Private Limited, from Oberoi Hotels Private Limited and certain other promoters Limited representing 14.12% of EIH Limited at a total cost of Rs 1,021 crores approximately.

Products & Brands

The Company expanded into textiles in 1975. Since its initial public offering in 1977, the Compan

integrated backwards into other industry sectors, most notably the production of petrochemicals and the

The Company from time to time seeks to further diversify into other industries. The Company now has

exploration and production of oil and gas to the manufacture of petroleum products, polyester prodplastics, polymer intermediates, chemicals and synthetic textiles and fabrics.

The Company's major products and brands, from oil and gas to textiles are tightly integrated and ben

Company. Central to the Company's operations is its vertical backward integration strategy; raw m

ethylene, propylene and normal paraffin that were previously imported at a higher cost and subject to i

from within the Company. This has had a positive effect on the Company's operating margins and inte

Company's exposure to the cyclicality of markets and raw material prices. The Company believes that th

maintaining a domestic market leadership position in its major product lines and in providing a competitiv

The Company's operations can be classified into four segments namely:

y Petroleum Refining and Marketing business

y Petrochemicals business

y Oil and Gas Exploration & Production business

8/8/2019 Abhishek Rai a-01 11005142


y Others

The Company has the largest refining capacity at any single location.

The Company is:

y Largest producer of Polyester Fibre and Yarn

y 4th largest producer of Paraxylene (PX)

y 5th largest producer of Polypropylene (PP)

y 7th largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG)

Owner of the company

"Between my past, the present and the future, there is one common factor: Relationship and Trust. This is

8/8/2019 Abhishek Rai a-01 11005142


Shri Dhirubhai H. Ambani

Founder Chairman Reliance Group

December 28, 1932 - July 6, 2002

Board of Directors of Reliance Industries Limited

8/8/2019 Abhishek Rai a-01 11005142


Shri Mukesh D. Ambani

Chairman & Managing Director

Shri Nikhil R. Meswani

Executive Director

Shri Hital R. Meswani

Executive Director

8/8/2019 Abhishek Rai a-01 11005142


Shri P.K.Kapil

Executive Director Shri Ramniklal H. Ambani Shri

Shri Yogendra P. Trivedi Dr. D. V. Kapur

8/8/2019 Abhishek Rai a-01 11005142


Prof. Ashok Misra Prof. Dipak C Jain A

Market share

y RIL's market share in the retail HSD and MS stood at 1.6% and 3% respectively. RIL, with a 47 p

y RIL now has a domestic market share in excess of 51% in polyester.

y Within India, RIL says it is the largest producer of polypropylene, polyethylene and polyvinyl chlor

in these products of 52%

y Profit & Loss account of RIL ltd

CompetitorsTop Reliance Industries Limited Competitors

y Bharat Petroleum Corporation Limited

y Indian Oil Corporation Limited

8/8/2019 Abhishek Rai a-01 11005142


y Tata Group of Companies

Competition

Last Price Market Cap.

(Rs. cr.) Sales

Turnover Net Profit Total Assets

Reliance 1,069.20 349,859.76 192,461.00 16,236.00 199,665.30

IOC 415.10 100,784.31 269,136.03 10,220.55 95,119.18

BPCL 744.10 26,902.35 135,331.48 735.90 35,281.91

Essar Oil 141.45 19,317.36 37,652.00 -514.00 15,027.38

HPCL 511.15 17,308.93 124,752.42 574.98 32,860.34

MRPL 81.95 14,362.55 32,287.94 1,112.38 7,292.97

Chennai Petro 256.40 3,818.09 24,927.26 603.22 7,539.97

Market share price

1068.95

8/8/2019 Abhishek Rai a-01 11005142


20.70 (1.97%)

BSE : Oct 11, 16:03

1069.20

19.55 (1.86%)

NSE : Oct 11, 16:34

Comperative analysisDec '06 Dec '07 Dec '08 increase/ % age increase/ % age

decrease decrease2007-06 2007-06

Income

Sales Turnover 424.04 502.26 562.43 78.22 18.44637 60.17 11.97985

Excise Duty 48.36 56.18 53.42 7.82 16.17039 -2.76 -4.91278

Net Sales 375.68 446.08 509.01 70.4 18.73935 62.93 14.10734

Other Income 9.58 69.55 14.08 59.97 625.9916 -55.47 -79.7556

Stock Adjustments 5.62 15.11 14.48 9.49 168.8612 -0.63 -4.16942

Total Income 390.88 530.74 537.57 139.86 35.7808 6.83 1.286882

Expenditure

Raw Materials 176.29 223.63 268.45 47.34 26.85348 44.82 20.04203Power & Fuel Cost 35.99 35.02 42.88 -0.97 -2.69519 7.86 22.44432

Employee Cost 44.73 55.57 62.25 10.84 24.23429 6.68 12.02087

Other ManufacturingExpenses

15.44 19.51 21.22 4.07 26.3601 1.71 8.764736

8/8/2019 Abhishek Rai a-01 11005142


Selling and Admin Expenses 24.06 28.42 26.59 4.36 18.12136 -1.83 -6.43913

Miscellaneous Expenses 16.82 19.35 23.52 2.53 15.04162 4.17 21.55039

Preoperative ExpCapitalised

0 0 -0.74 0 0 -0.74 0

Total Expenses 313.33 381.5 444.17 68.17 21.75661 62.67 16.42726Operating Profit 67.97 79.69 79.32 11.72 17.2429 -0.37 -0.4643

PBDIT 77.55 149.24 93.4 71.69 92.44358 -55.84 -37.4162

Interest 0.15 0.29 0.61 0.14 93.33333 0.32 110.3448

PBDT 77.4 148.95 92.79 71.55 92.44186 -56.16 -37.7039

Depreciation 9.3 12.18 13.96 2.88 30.96774 1.78 14.61412

Other Written Off 0 0 0 0 0 0 0

Profit Before Tax 68.1 136.77 78.83 68.67 100.837 -57.94 -42.3631

Extra-ordinary items 0.41 22.5 0.28 22.09 5387.805 -22.22 -98.7556

PBT (Post Extra-ord Items) 68.51 159.27 79.11 90.76 132.477 -80.16 -50.3296

Tax 22.49 25.75 24.11 3.26 14.49533 -1.64 -6.36893

Reported Net Profit 46.02 133.51 55.01 87.49 190.113 -78.5 -58.7971

Total Value Addition 137.04 157.87 175.72 20.83 15.19994 17.85 11.30677

Preference Dividend 0 0 0 0 0 0 0

Equity Dividend 19.38 44.29 22.14 24.91 128.5346 -22.15 -50.0113

Corporate Dividend Tax 2.72 7.53 3.76 4.81 176.8382 -3.77 -50.0664

Per share data (annualised)

Shares in issue (lakhs) 553.6 553.6 553.6 0 0 0 0

Earning Per Share (Rs) 8.31 24.12 9.94 15.81 190.2527 -14.18 -58.7894

Equity Dividend (%) 70 160 80 90 128.5714 -80 -50

Book Value (Rs) 34.97 49.72 54.98 14.75 42.17901 5.26 10.57924

8/8/2019 Abhishek Rai a-01 11005142


COMMPARITVE ANALYSIS

Profit & Loss account of RIL ltd

1. Net sales grew by 18.44% in 2007, after that it came down by 4.63% in 2008.

2. A ll expenses like power and fuel (7.86%) in 2008, employees cost (24.23%) in 2007, and, likewismanufacturing and selling administration and miscellaneous were near about4.20% increase in than growth in net sales.

3. Depreciation¶s% age figure even down by 14.61% in 2008 despite higher net sales.

4. other income grew rapidly in 2007 comparison to 2006 i.e 59.97 crores after that the figure camereached to -79.75% in the last year 2008, which affected to profitability and very less in comparis

5. A nalysis of profit in each year PBDIT, PBDT and PBT were on increasing trend but fell in 2008. Wnot able to maintain stagnant growth equal to net sales.

6. 3.26% growth in 2007 and after that% age figure came down and became 1.26% only of tax provirepresenting company fails to maintain sales volume; on the other hand, it affects the profit marg

7. one major drawback came in net profits, it increased rapidly in 2007 i.e 87.49% , after that it fell

was 42.36% less as comparison to 2007, not appropriate growth in net sales % age.

8/8/2019 Abhishek Rai a-01 11005142


Balance Sheet of RIL ltd

Dec '06 Dec '07 Dec '08 increase/ % age increase/ % age

decrease decrease

Sources Of Funds

Total Share Capital 27.68 27.68 27.68 0 0 0 0Equity Share Capital 27.68 27.68 27.68 0 0 0 0

Share Application Money 0 0 0 0 0 0 0

Preference Share Capital 0 0 0 0 0 0 0

Reserves 165.9 247.59 276.71 81.69 49.24051 29.12 11.76138

Revaluation Reserves 4.73 4.56 4.37 -0.17 -3.59408 -0.19 -4.16667

Networth 198.31 279.83 308.76 81.52 41.10736 28.93 10.33842

Secured Loans 0 0 0 0 0 0 0

Unsecured Loans 2.27 2.27 0 0 0 -2.27 -100

Total Debt 2.27 2.27 0 0 0 -2.27 -100

Total Liabilities 200.58 282.1 308.76 81.52 40.64214 26.66 9.450549Application Of Funds

Gross Block 199.35 225.64 258.24 26.29 13.18786 32.6 14.44779

Less: Accum.Depreciation

80.48 88.86 100.46 8.38 10.41252 11.6 13.05424

8/8/2019 Abhishek Rai a-01 11005142


Net Block 118.87 136.78 157.78 17.91 15.06688 21 15.35312

Capital Work in Progress 7.01 16.55 23.49 9.54 136.0913 6.94 41.93353

Investments 52.65 81.09 62.72 28.44 54.01709 -18.37 -22.6538

Inventories 49.88 70.21 100.84 20.33 40.75782 30.63 43.62626

Sundry Debtors 61.32 82.45 70.71 21.13 34.45858 -11.74 -14.2389

Cash and Bank Balance 10.2 21.53 16.5 11.33 111.0784 -5.03 -23.3627

Total Current Assets 121.4 174.19 188.05 52.79 43.48435 13.86 7.956829

Loans and Advances 23.64 34.32 31.77 10.68 45.17766 -2.55 -7.43007

Fixed Deposits 0 0.02 0.02 0.02 0 0 0

Total CA, Loans & Advances

145.04 208.53 219.84 63.49 43.77413 11.31 5.42368

Deffered Credit 0 0 0 0 0 0 0

Current Liabilities 84.72 114.82 112.52 30.1 35.5288 -2.3 -2.00314

Provisions 38.29 46.04 42.54 7.75 20.24027 -3.5 -7.60209

Total CL & Provisions 123.01 160.86 155.06 37.85 30.76986 -5.8 -3.60562

Net Current Assets 22.03 47.67 64.78 25.64 116.3867 17.11 35.89259

Miscellaneous Expenses 0 0 0 0 0 0 0

Total Assets 200.56 282.09 308.77 81.53 40.65118 26.68 9.457974

Contingent Liabilities 16.49 48.51 26.69 32.02 194.1783 -21.82 -44.9804

Book Value (Rs) 34.97 49.72 54.98 14.75 42.17901 5.26 10.57924

8/8/2019 Abhishek Rai a-01 11005142



1. Total assets/liabilities up by only 9.45%

2. Investment grew in 2007 by 28.44 crores and then fell down in 2007 by 18.37 crores,it is not gooof company .

3. Net block grew by 15.35% in 2008 and then 15% in 2007, respectively, which shows optimum uti

4. Inventories grew every year and the increased figure went on peak during the year 2008, I . e 43.comparison to growth in net sales.

5. Sundry debtors increased in between only in 2006-07, after that as jointly sales ration came dow

percentage fell down.

6. Most of current assets were on decreasing trend, which shows not a sound position or indication

7. Contingent liabilities came down during the year 2008, which is relevant as comparison to total l

Over all

1. On the basis of horizontal or comparative analysis all the findings are showing less growth in had to remain stagnant its profit margins and sales volume but unfortunately company failed to rfully utilization of resources. Moreover, recession in the economy was the main considerable pointargets of company .

8/8/2019 Abhishek Rai a-01 11005142


2. Its profit margins come down rapidly and sales ratio too, which is very less comparison to last yeof profits all the expenses will be paid but the tendency of provisions, contingent liabilities and ofail to enhance or survive with strong profitability index ratio in the market.

(3)Proper utilization of resources should be done and company need to allocate its employees cost, mcost of production. Expensesshould be taken as a serious step and proper management is requiremaking process of the company .

COMMONSIZE ANALYSIS


Dec '06 Dec '07 Dec '08 % age of % age of % age of

Dec '06 Dec '07 Dec '08

Income

Sales Turnover 424.04 502.26 562.43 112.8727 112.5942 110.4949

Excise Duty 48.36 56.18 53.42 12.87266 12.59415 10.49488

Net Sales 375.68 446.08 509.01 100 100 100

Other Income 9.58 69.55 14.08 2.550043 15.59137 2.766154

Stock Adjustments 5.62 15.11 14.48 1.495954 3.387285 2.844738

Total Income 390.88 530.74 537.57 104.046 118.9787 105.6109

Expenditure

Raw Materials 176.29 223.63 268.45 46.92557 50.13226 52.73963

Power & Fuel Cost 35.99 35.02 42.88 9.579962 7.85061 8.424196

8/8/2019 Abhishek Rai a-01 11005142


Employee Cost 44.73 55.57 62.25 11.90641 12.45741 12.22962

Other ManufacturingExpenses

15.44 19.51 21.22 4.109881 4.373655 4.168877

Selling and Admin Expenses 24.06 28.42 26.59 6.404387 6.371055 5.223866

Miscellaneous Expenses 16.82 19.35 23.52 4.477215 4.337787 4.620734Preoperative ExpCapitalised

0 0 -0.74 0 0 -0.14538

Total Expenses 313.33 381.5 444.17 83.40343 85.52278 87.26155

Operating Profit 67.97 79.69 79.32 18.09253 17.86451 15.58319

PBDIT 77.55 149.24 93.4 20.64257 33.45588 18.34934

Interest 0.15 0.29 0.61 0.039928 0.065011 0.11984

PBDT 77.4 148.95 92.79 20.60264 33.39087 18.2295

Depreciation 9.3 12.18 13.96 2.475511 2.730452 2.742579

Other Written Off 0 0 0 0 0 0

Profit Before Tax 68.1 136.77 78.83 18.12713 30.66042 15.48693Extra-ordinary items 0.41 22.5 0.28 0.109135 5.043938 0.055009

PBT (Post Extra-ord Items) 68.51 159.27 79.11 18.23626 35.70436 15.54193

Tax 22.49 25.75 24.11 5.986478 5.772507 4.736646

Reported Net Profit 46.02 133.51 55.01 12.24979 29.92961 10.80725

Total Value Addition 137.04 157.87 175.72 36.47785 35.39051 34.52192

Preference Dividend 0 0 0 0 0 0

Equity Dividend 19.38 44.29 22.14 5.158646 9.928712 4.34962

Corporate Dividend Tax 2.72 7.53 3.76 0.72402 1.688038 0.738689

Per share data (annualised) 0 0 0

Shares in issue (lakhs) 553.6 553.6 553.6 147.3595 124.1033 108.7601Earning Per Share (Rs) 8.31 24.12 9.94 2.211989 5.407102 1.95281

Equity Dividend (%) 70 160 80 18.63288 35.86801 15.71678

Book Value (Rs) 34.97 49.72 54.98 9.308454 11.14598 10.80136

8/8/2019 Abhishek Rai a-01 11005142


COMMON-SIZED ANALYSIS


1. Net sales increased during the year each year and last sale¶s figure was 509.01 croresrespectively which was sufficient as comparison to past figures.

2. Other income¶s % age on the basis of sales increased during the year 2007, afterthat it became only 2.76% age ofsales.

3. 87.26% of total expenses were on the basis of net sales, in which raw material were52.73% of sales in 2009.other expenses like power and fuel 8.42%, employees cost12.22%, other manufacturing expenses, selling and admin. Expenses 5.22% andmiscellaneous expenses 4.62% of sales percentage. Which were on growing stage as

comparison to past relative figures.

4. 18.09%, 17.86% and 15.58% of operating profit on the basis of net sales¶ percentage. It came down in the last year 2009 respectively .

5. PBT (profit before tax) was very high in 2008. This was 136.77 crores and relatively increases of 68.67 crores as comparison to 2007¶s figure, after that it became only 15.48% of sales percentage.

6. Total tax has been growing as sales percentage was growing in between 2006 to

2007, after that due to downfall noticed in 2008¶s sales ration ultimately it also felland figure became 4.73% of sales percentage.

1. Also depreciation cost as a percentage of net sales, more or less in 2007-

2008. Company made himself able to reduce the depreciation.

7. PBDT have been increasing in all the particular years. However, it was 20.60% costof sales in 2006, then 33.39%, after that it was only 18.22 percentages of net sales.

8. Net sales PBT ( post extra ord. items) was only 0.41% crores of sales in 2006 then jumped in 2008 after that figure became 22.5 crores, then it fell down and only 0.28 crores, which was only .05% to cost to sale.

9. Net profit jumped in 2008 i. e 133.51 crores, after that a decrease was noticedand figure became only 55.01 crores, which was only 10.80 percentages of netsales.

8/8/2019 Abhishek Rai a-01 11005142



Dec '06 Dec '07 Dec '08 % age of % age of % age of

Dec '06 Dec '07 Dec '08

Sources Of Funds

Total Share Capital 27.68 27.68 27.68 13.79998 9.812123 8.964892

Equity Share Capital 27.68 27.68 27.68 13.79998 9.812123 8.964892

Share Application Money 0 0 0 0 0 0

Preference Share Capital 0 0 0 0 0 0

Reserves 165.9 247.59 276.71 82.71014 87.76675 89.61977

Revaluation Reserves 4.73 4.56 4.37 2.358161 1.616448 1.415339

Networth 198.31 279.83 308.76 98.86828 99.19532 100

Secured Loans 0 0 0 0 0 0

Unsecured Loans 2.27 2.27 0 1.131718 0.804679 0

Total Debt 2.27 2.27 0 1.131718 0.804679 0

Total Liabilities 200.58 282.1 308.76 100 100 100

Application Of Funds

Gross Block 199.35 225.64 258.24 99.38678 79.98582 83.63778

Less: Accum.Depreciation

80.48 88.86 100.46 40.12364 31.49947 32.5366

Net Block 118.87 136.78 157.78 59.26314 48.48635 51.10118

Capital Work in Progress 7.01 16.55 23.49 3.494865 5.866714 7.607851

Investments 52.65 81.09 62.72 26.24888 28.74513 20.31351

Inventories 49.88 70.21 100.84 24.86788 24.88834 32.65967

Sundry Debtors 61.32 82.4 70.71 30.57134 29.2095 22.90128

Cash and Bank Balance 10.2 21.53 16.5 5.085253 7.632045 5.343956

Total Current Assets 121.4 174.19 188.05 60.52448 61.74761 60.90491

Loans and Advances 23.64 34.32 31.77 11.78582 12.1659 10.28955

Fixed Deposits 0 0.02 0.02 0 0.00709 0.006478

Total CA, Loans & Advances

145.04 208.5 219.84 72.3103 73.90996 71.20093

Deffered Credit 0 0 0 0 0 0

Current Liabilities 84.72 114.82 112.52 42.23751 40.70188 36.44254

Provisions 38.29 46.04 42.54 19.08964 16.32045 13.77769

Total CL & Provisions 123.01 160.86 155.05 61.32715 57.02233 50.217

Net Current Assets 22.05 47.67 64.78 10.99312 16.89826 20.9807Miscellaneous Expenses 0 0 0 0 0 0

Total Assets 200.58 282.01 308.76 100 99.9681 100

Contingent Liabilities 16.49 48.51 26.69 8.221159 17.19603 8.644254

Book Value (Rs) 34.97 49.72 54.98 17.43444 17.62496 17.80671

8/8/2019 Abhishek Rai a-01 11005142



1. Total share capital and equity share capital remained same in all respective years. 2. R eserves were 89.61% of assets and liabilities which were relevant step taken by

the management. 3. Total liabilities have been increasing year by year, in last year it was308.76 crores,

which was not good indication for company . Because if we look at net sales ratio andprofit margins those were on decreasing trend as comparison to last year.

4. net block was sufficiently used by the company and it was 51.10% of total assets andliabilities. 5. Investments grew up to 81.09 crores till 2008, after that it decreased rapidly and

figure became 62.72 crores only, which was only 20.31% of totalassets andliabilities.

6. Current assets have been used successfully by company and it participated with60.90% of net total assets and liabilities.

7. Inventories were well managed as a good former, which was32.65% of total assetsand liabilities in the last year.

8. Provisions were on increasing trend, and it is not relevant feature for companies¶growth in net sales and profit margins.

9. Shares of contingent liabilities came down in 2009 as comparison to 2008¶s figure, which were only 26.68 crores and only 8.64 percentages of total assets and liabilities. This is affecting the profit margins.

Over all

3. On the basis of common-sized analysis, all the findingsare showing less growth in2009. in this year company had to remain constant his profit margins and sales volume but company failed to retain this position due to not fully utilization of resources. Moreover, recession in the economy was the main considerable point which influences the targets of company .

4. Its profit margins come down rapidly and sales ratio too, which is very lesscomparison to last year¶s performance. On behalf of profits all the expenses will be

paid but the tendency of provisions, contingent liabilities and other expenses makecompany fail to enhance or survive with strong profitability index ratio.

1. Proper utilization of resources should be done and company need to allocate itsemployees cost, moreover it needs to control cost of production. Expenses should betaken as a serious step and proper management is required to handle the decisionmaking of company .

8/8/2019 Abhishek Rai a-01 11005142


TREND ANALYIS

Profit & Loss account of RIL.

Dec '06 Dec '07 Dec '08 %age % age % age

Income

Sales Turnover 424.04 502.26 562.43 100 112.8727 133.6936

Excise Duty 48.36 56.18 53.42 100 12.87266 14.95422

Net Sales 375.68 446.08 509.01 100 100 118.7394

Other Income 9.58 69.55 14.08 100 2.550043 18.5131

Stock Adjustments 5.62 15.11 14.48 100 1.495954 4.02204

Total Income 390.88 530.74 537.57 100 104.046 141.2745

ExpenditureRaw Materials 176.29 223.63 268.45 100 46.92557 59.52672

Power & Fuel Cost 35.99 35.02 42.88 100 9.579962 9.321763

Employee Cost 44.73 55.57 62.25 100 11.90641 14.79184Other ManufacturingExpenses 15.44 19.51 21.22 100 4.109881 5.19325

Selling and Admin Expenses 24.06 28.42 26.59 100 6.404387 7.564949

Miscellaneous Expenses 16.82 19.35 23.52 100 4.477215 5.15066

Preoperative Exp Capitalised 0 0 -0.74 o0 0 0

Total Expenses 313.33 381.5 444.17 100 83.40343 101.5492

Operating Profit 67.97 79.69 79.32 100 18.09253 21.2122

PBDIT 77.55 149.24 93.4 100 20.64257 39.7253

Interest 0.15 0.29 0.61 100 0.039928 0.077193PBDT 77.4 148.95 92.79 100 20.60264 39.6481

Depreciation 9.3 12.18 13.96 100 2.475511 3.242121

Other Written Off 0 0 0 0 0 0

Profit Before Tax 68.1 136.77 78.83 100 18.12713 36.40598

Extra-ordinary items 0.41 22.5 0.28 100 0.109135 5.98914

PBT (Post Extra-ord Items) 68.51 159.27 79.11 100 18.23626 42.39512

Tax 22.49 25.75 24.11 100 5.986478 6.854238

Reported Net Profit 46.02 133.51 55.01 100 12.24979 35.53822

Total Value Addition 137.04 157.87 175.72 100 36.47785 42.02247

Preference Dividend 0 0 0 100 0 0

Equity Dividend 19.38 44.29 22.14 100 5.158646 11.78929

Corporate Dividend Tax 2.72 7.53 3.76 100 0.72402 2.004365

Per share data (annualised)

Shares in issue (lakhs) 553.6 553.6 553.6 100 147.3595 147.3595

Earning Per Share (Rs) 8.31 24.12 9.94 100 2.211989 6.420358

Equity Dividend (%) 70 160 80 100 18.63288 42.58944

Book Value (Rs) 34.97 49.72 54.98 100 9.308454 13.23467

8/8/2019 Abhishek Rai a-01 11005142


TREND ANALYSIS

Profit & Loss account of RIL

1. Net growing trend of net sales were showing 118.64% of net sales on the basis of 2006, after that during the year 2008, the figure of percentage became 132.63%

2. A dramatic increase came in other income i.e 725.99% during the year 2007 onthe basis of 2006.

3. Only 2% increase came in the percentage of total income during the year 2008, which was very less.

4. Therefore, expenses like, power and fuel stroked at 119.14%, employees cost were139.60 %, other manufacturing expenses were 137.43%, selling and administration were 110.51% and miscellaneous expenses were 139.83% during the year 2008 withseeing the percentage of 2006.

5. Operating profit was nearly same in b/w the year 2007-08 and the percentage was117.24% and 116.69% respectively on the basis of 2006.

6. PBDIT and PBDT were near about the same percentage that was 120% on the basisof 2006.

7. A sales percentage fell down during the year 2008, relevantly, seeing this , the

percentage of tax came down in 2008 and it was only 115.47%of 2006.

8. R eported net profit was 290.11% and 119.53% during the year 2007-08 on the basisof 2006.

9. EPS rapidly fell down by 14.18 crores and it was only 119.61% on the basis of 2006 µsfigure.

8/8/2019 Abhishek Rai a-01 11005142


GRAPH OF TREND ANALYSIS

0

20

40

60

80

100

120

140

160

%age % age % age

Income

Sales Turnover

Excise Duty

Net Sales

Other Income

Stock

Adjustments

Total Income

Expenditure

8/8/2019 Abhishek Rai a-01 11005142


Balance Sheet of RIL

Dec '06 Dec '07 Dec '08 % age % age % age

Sources Of FundsTotal Share Capital 27.68 27.68 27.68 100 100 100

Equity Share Capital 27.68 27.68 27.68 100 13.79998 100

Share Application Money 0 0 0 0 0 0

Preference Share Capital 0 0 0 0 0 0

Reserves 165.9 247.59 276.71 100 82.71014 166.7932

Revaluation Reserves 4.73 4.56 4.37 100 2.358161 92.38901

Net worth 198.31 279.83 308.76 100 98.86828 155.6956

Secured Loans 0 0 0 0 0 0

Unsecured Loans 2.27 2.27 0 100 1.131718 0

Total Debt 2.27 2.27 0 100 1.131718 0

Total Liabilities 200.58 282.1 308.76 100 100 153.9336

Application Of Funds

Gross Block 199.35 225.64 258.24 100 99.38678 129.541

Less: Accum. Depreciation 80.48 88.86 100.46 100 40.12364 124.826

Net Block 118.87 136.78 157.78 100 59.26314 132.7332

Capital Work in Progress 7.01 16.55 23.49 100 3.494865 335.0927

Investments 52.65 81.09 62.72 100 26.24888 119.1263

Inventories 49.88 70.21 100.84 100 24.86788 202.1652

Sundry Debtors 61.32 82.4 70.71 100 30.57134 115.3131

Cash and Bank Balance 10.2 21.53 16.5 100 5.085253 161.7647

Total Current Assets 121.4 174.19 188.05 100 60.52448 154.9012

Loans and Advances 23.64 34.32 31.77 100 11.78582 134.3909

Fixed Deposits 0 0.02 0.02 100 0 0Total CA, Loans & Advances 145.04 208.5 219.84 100 72.3103 151.572

Deferred Credit 0 0 0 0 0 0

Current Liabilities 84.72 114.82 112.52 100 42.23751 132.814

Provisions 38.29 46.04 42.54 100 19.08964 111.0995

Total CL & Provisions 123.01 160.86 155.05 100 61.32715 126.0467

Net Current Assets 22.05 47.67 64.78 100 10.99312 293.7868

Miscellaneous Expenses 0 0 0 0 0 0

Total Assets 200.58 282.01 308.76 100 100 153.9336

Contingent Liabilities 16.49 48.51 26.69 100 8.221159 161.8557

Book Value (Rs) 34.97 49.72 54.98 100 17.43444 157.2205

8/8/2019 Abhishek Rai a-01 11005142


Balance Sheet of RIL

1. Share capital and equity share capital remained same during the all respective years.

2. R eserves were the 149.24% in the year 2007 and 166.79% during the year 2008 onthe basis of 2006.

3. Neworth have been increasing during the all years and it was 149.24% in 2008 and160.79% in 2008 on the basis of 2006.

4. Total liabilities increased in all years and it was 53% ahead from comparison to 2007on the basis of 2006.

5. Goss block has been increasing during the all respective years, and it was 113.18% in129.54% during 2007-08 and which was 16.36 % more in 2008.

6. Inventories grew very fast rate and were showing increasing trend.

7. Cash and bank balance was 211.07% in 2007 and 161.76% on the basis of 2006.

8. Sundry debtors were showing increasing trend and sloped downward after 2007 andfigure became only 115.31% on the basis of 2006.

Over all

1. A ccording to trend analysis the growth of company was going down from 2006 onwards.

2. Expenses trend are on increasing stage as comparison to other years, need to controlthe extra cost concept of company . It can only be done by effective management.

3. Full authority or delegation powers should be implemented and try to get maximum

output in order to enhance the profitability index of company .

8/8/2019 Abhishek Rai a-01 11005142


Balance Sheet µ s graph

0

50

100

150

200

250

300

350

% age % age % age

Sources Of Funds

Total Share Capital

Equity Share Capital

Share Application

Money

Preference Share

Capital

Reserves

Revaluation

Reserves

Networth

Secured Loans

Unsecured Loans

Total Debt

Total Liabilities

abhishek rai a-01 11005142

Documents