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LTD SUBMITTEDSUBMITTED BY BY

GROUP NO. 4GROUP NO. 4

SEC-PGPM (A)SEC-PGPM (A)

Under the guidance ofUnder the guidance ofProf. Smita S. Sahoo Prof. Smita S. Sahoo

GROUP REPRESENTATIVE

Bijay Jha PGPM/2010-12/06Bijay Jha PGPM/2010-12/06

Debadatta Sahoo PGPM/2010-12/11Debadatta Sahoo PGPM/2010-12/11

Pratim Das PGPM/2010-12/30Pratim Das PGPM/2010-12/30

Ruru Kumar Sahu PGPM/2010-12/34Ruru Kumar Sahu PGPM/2010-12/34

Sabeeha Tanweer PGPM/2010-12/35Sabeeha Tanweer PGPM/2010-12/35

Siddhartha Priyaranjan PGPM/2010-12/46Siddhartha Priyaranjan PGPM/2010-12/46

Somika Saran Pandey PGPM/2010-12/47Somika Saran Pandey PGPM/2010-12/47

Subhashree Ray PGPM/2010-12/49Subhashree Ray PGPM/2010-12/49

COMPANY PROFILE

Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses.

Corporate Governance at Reliance is based on the following main principles:

• Constitution of a Board of Directors of appropriate composition, size, varied expertise and commitment to discharge its responsibilities and duties.

• Ensuring timely flow of information to the Board and its Committees to enable them to discharge their functions effectively.

• Independent verification and safeguarding integrity of the Company’s financial reporting.

• A sound system of risk management and internal control.

• Timely and balanced disclosure of all material information concerning the Company to all stakeholders.

• Transparency and accountability.

• Compliance with all the applicable rules and regulations.

• Fair and equitable treatment of all its stakeholders including employees, customers, shareholders and investors.

PRODUCTS & BRANDS

The Company expanded into textiles in 1975. Since its initial public offering in 1977, the Company has expanded rapidly and integrated backwards into other industry sectors, most notably the production of petrochemicals and the refining of crude oil.

The Company from time to time seeks to further diversify into other industries. The Company now has operations that span from the exploration and production of oil and gas to the manufacture of petroleum products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals and synthetic textiles and fabrics.

Balance sheet of Reliance Industries Limited

 

2009 (Rupees in Cr.)

2010 (Rupees in Cr.)

Application Of Funds    Gross Block 149,628.70 215,864.71Less: Accum. Depreciation 49,285.64 62,604.82Net Block 100,343.06 153,259.89Capital Work in Progress 69,043.83 12,138.82Investments 20,268.18 19,255.35Inventories 14,836.72 26,981.62Sundry Debtors 4,571.38 11,660.21Cash and Bank Balance 500.13 362.36Total Current Assets 19,908.23 39,004.19Loans and Advances 13,375.15 10,517.57Fixed Deposits 23,014.71 17,073.56Total CA, Loans & Advances 56,298.09 66,595.32Deffered Credit 0 0Current Liabilities 42,664.81 48,018.65Provisions 3,010.90 3,565.43Total CL & Provisions 45,675.71 51,584.08Net Current Assets 10,622.38 15,011.24Miscellaneous Expenses 0 0Total Assets 200,277.45 199,665.30     Sources of fundsTotal Share Capital 1,573.53 3,270.37Equity Share Capital 1,573.53 3,270.37Share Application Money 69.25 0Preference Share Capital 0 0Reserves 112,945.44 125,095.97Revaluation Reserves 11,784.75 8,804.27Networth 126,372.97 137,170.61Secured Loans 10,697.92 11,670.50Unsecured Loans 63,206.56 50,824.19Total Debt 73,904.48 62,494.69Total Liabilities 200,277.45 199,665.30

Balance sheet of Reliance Industries Limited

 

2009 (Rupees in Cr.)

2010 (Rupees in Cr.)

amount of increase/ decrease

Percentage(%) of increase/ decrease

Application Of Funds        Gross Block 149,628.70 215,864.71 66,236.01 44.27Less: Accum. Depreciation 49,285.64 62,604.82 13,319.18 27.02Net Block 100,343.06 153,259.89 52,916.83 52.74Capital Work in Progress 69,043.83 12,138.82 -56,905.01 -82.42Investments 20,268.18 19,255.35 -1,012.83 -5.00Inventories 14,836.72 26,981.62 12,144.90 81.86Sundry Debtors 4,571.38 11,660.21 7,088.83 155.07Cash and Bank Balance 500.13 362.36 -137.77 -27.55Total Current Assets 19,908.23 39,004.19 19,095.96 95.92Loans and Advances 13,375.15 10,517.57 -2,857.58 -21.36Fixed Deposits 23,014.71 17,073.56 -5,941.15 -25.81Total CA, Loans & Advances 56,298.09 66,595.32 10,297.23 18.29Deffered Credit 0 0 0.00 0.00Current Liabilities 42,664.81 48,018.65 5,353.84 12.55Provisions 3,010.90 3,565.43 554.53 18.42Total CL & Provisions 45,675.71 51,584.08 5,908.37 12.94Net Current Assets 10,622.38 15,011.24 4,388.86 41.32Miscellaneous Expenses 0 0 0.00 0.00Total Assets 200,277.45 199,665.30 -612.15 -0.31         Sources of funds  Total Share Capital 1,573.53 3,270.37 1,696.84 107.84Equity Share Capital 1,573.53 3,270.37 1,696.84 107.84Share Application Money 69.25 0 -69.25 -100.00Preference Share Capital 0 0 0.00 0.00Reserves 112,945.44 125,095.97 12,150.53 10.76Revaluation Reserves 11,784.75 8,804.27 -2,980.48 -25.29Networth 126,372.97 137,170.61 10,797.64 8.54Secured Loans 10,697.92 11,670.50 972.58 9.09Unsecured Loans 63,206.56 50,824.19 -12,382.37 -19.59Total Debt 73,904.48 62,494.69 -11,409.79 -15.44Total Liabilities 200,277.45 199,665.30 -612.15 -0.31

ANALYSIS OF BALANCE SHEETANALYSIS OF BALANCE SHEET

  2009 2010

Current assets 19908.23 39004.19

Less: current liability

42664.81 48018.65

WC -22756.58 -9014.46

Current financial position

•It shows that there is not sufficient fund to meet day to day business.•In this case working capital will decrease than the first year by 60%.•It shows that the current financial position is not good.

ANALYSIS OF BALANCE SHEETANALYSIS OF BALANCE SHEET

Long term financial position

•In this balance sheet shows that long term financial position is not good.

•In this case fixed asset increases (52.73%) more than the long term liability (9.09%).

•It shows that working capital is diverted to fixed asset.

Profitability position

•It shows that profitability position is good.

•Increase reserves by (10.76%) denote increase in profitability.