Reliance

Presented By-
Prachi Srivastava
Roll No.- 10PT1-100
Company Overview
 Chairman and Managing Director : Mukesh D. Ambani
 No. of Executive Directors - 4
 No. of Non-Executive Directors – 1
 No. of Independent Directors – 7
 Largest refining capacity at any single location.
 Largest Producer of Polyester Fiber and Yarn.
 4th Largest Producer of Paraxylene (PX).
 5th Largest Producer of Polypropylene (PP).
 7th Largest Producer of Purified Terepthalic Acid (PTA).
10 Years Trend
 Schedule Rs in crore Rs in crore
INCOME 2009-10 2008-09
Turnover 200,400 146328,07
Less: Excise Duty/Service Tax
-7,938.77 4480.6
Recovered
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 Revolutionary
-2,980.48 1987.14
Reserve
10,496.53 5195.29
Adjustment pursuant to the scheme of
- 7728.92
Amalgamation
including write off of investments RPL - 7728.92
Less: Transferred from general
Reserve
Profit before Tax 20,547.44 18433.23
Provision for Current tax 3,111.77 -1206.5
Provision 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
5,384.19 19672.61
previous year
21,619.86
Amount Available for appropriations
APPROPRIATIONS
General Reserve 14,000.00 11728.92
340.05
Debenture Redemption Reserve 189.50 1897.05
Interim Dividend on Equity 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
 Schedule Rs in crore Rs in crore
SOURCES Of
FUNDS 2009-’10 2008-’09
Shareholder's Funds
Equity Share Capital A 3,270.37 1573.53
Equity Share
Response - 69.25
Reserves and Surplus B 133,900.24 124730.19
137,170.61 126372.97
Loan funds
secured loans C 11,670.50 10,697.92
Unsecured Loans D 50,824.19 63206.56
62,494.69 73,904.48
Deferred tax Liability 10,926.30 9726.3
Total 210,591.60 210003.75
APPLICTN. Of
FUNDS
Fixed Assets E
Gross block 2,15,864.71
Less : Depreciation 62,604.82
Net Block 1,53,259.89
Capital wk-in-progres 12,138.82
 Schedule Rs in crore Rs in crore
2009-’10 2008-’09
Investments F 23,228.62
CT Asset,
loans&Advances G
Current Assets
Inventories 26981.62
Sundry Debtors 11660.21
Cash and Bank Balances 13462.65 22176.53
other current Assets 91.40 47.86
Loans and Advances H 52,195.88 41632.49
10,183.22 13,079.78
less: Current liability and
Provisions I 62,379.10 54712.27
Current Liability 36,849.40 32691
3010.9
Provisions
3,565.43
Net Current Asset 40,414.83 21964.27 35701.9 19010.37
Total 210591.60 41632.49 210003.75
 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 – 2009 2009 – Analysis

2010
Current 1.53 1.54 Current ratios has remain same on
Ratio year 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 the current liabilities.
It shows that that RIL decreased
capacity in paying its creditors at
short notice.
 Solvency Ratio
Ratios 2008- 2009-10 Analysis
2009

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 becomes favorable 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
reserve and surplus due to low profits in 2009
- 2010.
Interest Coverage 14.54 16.54 This ratio has increases supporting the fact
Ratio 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

Capital Turnover .71 .96 The ratio has shown improvement

Ratio reflecting better utilization of
employed capital
Working Capital 7.46 8.76 The w/c ratio too has shown
Ratio improvement reflecting better working
capital management.
Debtors Turnover 23.71 The ratio for the year 2009-10, shows
Ratio reasonably fast recovery of average
debtors and debt collection.
Fixed Assets 1.41 1.26 It has shown decline reflecting
Turnover decrease in the efficient utilization of
fixed assets as compared to sales on
year to year basis.
Stock Turnover 7.93 It reflects the rate of conversion of
inventory into sales. Higher the ratio
better it is.
 Profitability Ratios(%)
Ratios 2008-2009 2009-2010 Analysis
Gross profit 16.13 13.83 The G.P ratio has gone down reflecting
higher 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 smaller
G.P and increased operating cost.
Operating profit 17.3 16.5 Decrease lower profit base or rise in
the cost of operating services.
Return on Total 8.21 8.98 The ratio has improved.
Assets
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
 Turnover achieved was Rs. 2,00,400 crore, a growth of 37% over
the previous year. Increase in revenue was due to 50% rise in
volumes and a 13% decline in prices. During the year exports
including deemed exports, were higher by 24% at Rs. 110176 crore
.

 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.

 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
 Education:-Education continues to be one of the major thrust areas of RIL’s CSR. A network of 10
schools caters to over 14000 students spread across geographies in India. RIL’s project include
 Community Health care :-RIL has developed community medical centers near manufacturing
divisions. They provide health services covering preventive, promotive and curative healthcare.
 Community’s safety:- Institutionalized road safety training across its numerous manufacturing
division. To provide emergency and trauma care to victim of highway accidents.
 Rural Infrastructure Development:- Reliance rural development trust as a cooperate NGO
continued its activity working with gokul gram yojana of Gujarat state government.
 Livelihood Support Program:- Sponsored self help group to empower women and youth from
under privileged segment through various employment oriented and skill development program like
dressmaking, nursing, jewelry making etc.
 Relief Operation:-Time tested disaster management and calamity relief operations were put to use
yet again in addition to extending donations.
 Wildlife and Animal care:-Parapets were constructed in open well in Gir forest in Gujarat which
considerably reducing deaths amongst lion cubs.
 Heritage Conservation:- RIL continues to support and develop the heritage temple and town of
Dwarka , it carpeted the bypass road leading to the temple and also continued the upkeep of the
temple and adjacent areas.
Corporate Social Responsibility (Contd.)
 Supporting Indian Culture
  Under the egis of the gujart industries s Navratri special society , RIL Supported more than a dozen garba
troops and organization Jamnagar etc.
 Supporting Professional Organization and NGO
 It supports and works with society for village development in petro chemical areas
 Promoting Sports and Sportspersons:
 The Indian Premier League sets one of the examples for the support of RIL in sports.
 Acknowledging and supporting talent
 ‘Real Heroes is an imitative of CNN-IBN in partnership with RIL to honor the silent warrior.
 Dhirubhai Ambani Foundation:
 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
 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 You