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Topic: - Reliance Industries Limited.
Submitted to: - Submitted by:-
Miss. Sukhwinder kaur Name: - Abhishek Rai
Roll No.:- A-01
Reg. No. :-11005142
Course Code:-MGT515
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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
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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
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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
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Shri Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
Board of Directors of Reliance Industries Limited
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Shri Mukesh D. Ambani
Chairman & Managing Director
Shri Nikhil R. Meswani
Executive Director
Shri Hital R. Meswani
Executive Director
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Shri P.K.Kapil
Executive Director Shri Ramniklal H. Ambani Shri
Shri Yogendra P. Trivedi Dr. D. V. Kapur
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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
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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
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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
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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
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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.
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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
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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
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Balance Sheet of RIL ltd
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 .
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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
Profit & Loss account of RIL ltd
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
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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
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COMMON-SIZED ANALYSIS
Profit & Loss account of RIL ltd
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.
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Balance Sheet of RIL ltd
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
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Balance Sheet of RIL ltd
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 .
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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
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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.
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GRAPH OF TREND ANALYSIS
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%age % age % age
Income
Sales Turnover
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Net Sales
Other Income
Stock
Adjustments
Total Income
Expenditure
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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
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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 .
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Balance Sheet µ s graph
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Equity Share Capital
Share Application
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Preference Share
Capital
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Unsecured Loans
Total Debt
Total Liabilities