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8/8/2019 Reliance FSA Prachi

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Reliance

Presented By- Prachi Srivastava

Roll No.- 10PT1-100



Company Overview

y Chairman and Managing Director : Mukesh D. Ambani

y No. of Executive Directors - 4

y No. of Non-Executive Directors ² 1

y No. of Independent Directors ² 7

y Largest refining capacity at any single location.

y Largest Producer of Polyester Fiber and Yarn.

y 4th Largest Producer of Paraxylene (PX).

y 5th Largest Producer of Polypropylene (PP).

y 7th Largest Producer of Purified Terepthalic Acid (PTA).



10 Y ears Trend



Schedule Rs in crore Rs in crore

INCOME 2009-10 2008-09

Turnover 200,400 146328,07

Less: Excise Duty/Service Tax

Recovered-7,938.77 4480.6

Net Turnover J 192,461.02 141847.47

Other Income K 2,460.47 2059.88

Variation in Stocks 3,947.89 427.56

198,869.38 144334.91

EXPENTITURE

Purchases 2,995.82 2205.27

Manufacturing and other Expenses L 162,832.38 116755.89

Interest and Finance Charges M 1,997.21 1745.23

Depreciation 13,478 7182.43

Less: Transferred from RevolutionaryReserve

-2,980.48 1987.14

10,496.53 5195.29

Adjustment pursuant to the scheme of

Amalgamation- 7728.92

including write off of investments RPL - 7728.92

Less: Transferred from general Reserve178,321.94 125901.68



Profit before Tax 20,547.44 18433.23

Provision for urrent tax 3,111.77 -1206.5Provision for Fringe Benefit TAX - -56.87

Provision for deferred tax 1,200.00 -1860.54

15309.32

Profit After Tax 16,235.67 4363.29

Add: Balance brought forward from

previous year5,384.19 19672.61

21,619.86

Amount Available for appropriations

APPR PRIATI S

General Reserve 14,000.00 11728.92

340.05Debenture Redemption Reserve 189.50 1897.05

Interim Dividend on quity Shares -

Proposed dividend on equity shares 2,084.67

Tax on Dividend 346.24 322.4

16,620.41 14288.42

Balance carried to Balance sheet 4,999.45 5384.19




S UR S f FU DS 2009-·10 2008-·09

Shareholder's Fundsquity Share apital A 3,270.37 1 73. 3

quity Share Response - 69.2

Reserves and Surplus B 133,900.24 124730.19

137,170.61 126372.97

Loan funds

secured loans 11,670. 0 10,697.92Unsecured Loans D 0,824.19 63206. 6

62,494.69 73,904.48

Deferred tax Liability 10,926.30 9726.3

Total 210, 91.60 210003.7

A LI T . f FU DS

Fixed Assets

Gross block 2,1 ,864.71

Less : Depreciation 62,604.82

et Block 1, 3,2 9.89

apital wk-in-progres 12,138.82

1,6 ,398.71




2009-·10 2008-·09

Investments F 23,228.62T Asset, loans&Advances G

urrent Assets

Inventories 26981.62

Sundry Debtors 11660.21

ash and Bank Balances 13462.6 22176. 3

other current Assets 91.40 47.86

Loans and Advances H 2,19 .88 41632.49

10,183.22 13,079.78

less: urrent liability and

ProvisionsI 62,379.10 4712.27

urrent Liability 36,849.40 32691

3010.9

Provisions

3, 6 .43

et urrent Asset 40,414.83 21964.27 3 701.9 19010.37

Total 210 91.60 41632.49 210003.7



Ratio Analysis

Ratios name Purpose of calculating

Liquidity ratios Measures short term liquidity of the firm

Profitability ratios Measures efficiency of firms activities &

ability to generate profits

Solvency Ratios Helps the investor to analyze his present & future

investment in the firm.



Liquid Ratios

Ratio 2008 ² 2009 2009 ²

2010

Analysis

Current Ratio 1.53 1.54 Current ratios has remain same onyear to year basis.

Quick Ratio 1.12 .88 However, the quick ratio has gone

down reflecting the increase in the

stock or increase in the unsold stock as

compared to the previous year. It may

also be due to the increase in thecurrent liabilities.

It shows that that RIL decreased

capacity in paying its creditors at short

notice.



Solvency RatioRatios 2008-

2009

2009-10 Analysis

Debt to Equity .63 .46 Debt to equity ratio declined reflecting either

payment of high cost debt or raising of equity.

Considering the nature of industry RIL has created

scope for raising debt when market becomesfavorable or debt is available at low cost.

Debt to Total Assets .32 .28 This ratio declined corroborating the fact that debt

was repaid during the year, making the ratio

favorable

Proprietary Ratio .55 .51 This ratio decreased reflecting decrease reserveand surplus due to low profits in 2009 - 2010.

Interest Coverage Ratio 14.54 16.54 This ratio has increases supporting the fact that

debt was repaid during the year resulting in low

interest charges, giving comfortable cushion to the

business.



Activity Ratios

Ratios 2008-2009 2009-2010 Analysis

CapitalTurnover Ratio .71 .96 The ratio has shown improvement

reflecting better utilization of employed

capital

Working Capital Ratio 7.46 8.76 The w/c ratio too has shown improvement

reflecting better working capital

management.

Debtors Turnover

Ratio

23.71 The ratio for the year 2009-10, shows

reasonably fast recovery of average debtors

and debt collection.

Fixed AssetsTurnover 1.41 1.26 It has shown decline reflecting decrease inthe efficient utilization of fixed assets as

compared to sales on year to year basis.

StockTurnover 7.93 It reflects the rate of conversion of

inventory into sales. Higher the ratio better

it is.



Prof itability Ratios(%)Ratios 2008-2009 2009-2010 Analysis

Gross profit 16.13 13.83 TheG.P ratio has gone down reflectinghigher manufacturing and purchase cost on

one hand and constrain on the other hand in

increase price of the product due to difficult

market conditions.

Net profit ratio 10.5 8.1 Net profit has declined due to smallerG

.Pand increased operating cost.

Operating profit 17.3 16.5 Decrease lower profit base or rise in the

cost of operating services.

Return on Total Assets 8.21 8.98 The ratio has improved.

Return on Equity 12.11 11.83 Return on equity has declined showing

lower profits due to tough economic

conditions

EPS 49.7 49.7 RIL has followed the policy of maintaining

constant return to its shareholders .



Summary

y Turnover achieved was Rs. 2,00,400 crore, a growth of 37%

over the previous year. Increase in revenue was due to 50% rise involumes and a 13% decline in prices. During the year exports

including deemed exports, were higher by 24% at Rs. 110176

crore .

y Operating profit before other income increased by 29% from

Rs. 23,683 crore to Rs. 30,581 crore. Net operating margin for

the period was 15.9% as compared to 16.7% in the previous year.

y Capital expenditure during the year was Rs 21,943 crore

primarily on account of exploration and production, SEZ refinery

and implementation of several value maximization projects



Corporate Social Responsibility (Contd.)y Supporting Indian Culture

y Under the egis of the gujart industries s Navratri special society , RIL Supported more than a dozen garba

troops and organization Jamnagar etc.

y Supporting Professional Organization and NGO

y It supports and works with society for village development in petro chemical areas

y Promoting Sports and Sportspersons:

y

The Indian Premier League sets one of the examples for the support of RIL in sports.y Acknowledging and supporting talent

y µReal Heroes is an imitative of CNN-IBN in partnership with RIL to honor the silent warrior.

y Dhirubhai Ambani Foundation:

y Has education and public health care as its focus area. It Provides merit awards and scholarships to the

deserving students . Also take care of physically challenged meritorious students

y Dhirubhai Ambani International School : is founded as a dream project to offer educational opportunities to

students that make learning a joy helps bring out the best for them.



Thank Y ou

reliance fsa prachi

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