A

PROJECT REPORT ON

A STUDY OF RATIO ANALYSIS OF

“ Reliance Industries Ltd”

SUBMITTED BY

Sayed Abdul Hamid

IN THE PARTIAL FULFILMENT OF DEGREE

Bachelor of business administration

PROJECT GUIDENCE OF

Pro. Rasika Naik

SUBMITTED TO

“SAVITRIBAI PHULE PUNE UNIVERSITY”

THROUGH

Suryadatta College Of Management Information Research And

Technology
PUNE 411005
ACADEMIC YEAR- 2020-2021
1
 DECLARATION BY STUDENT

I hereby declare that the project report title “A Study of Ratio Analysis of Reliance
Industries Ltd.” has been prepare and submitted by me in the partial fulfillment of
the bachelor Degree of BBA curriculum as per the rules of Savitribai Phule Pune
University.

This report is based on my original research. This report gives clear idea about
Financial position of company. All attempts have been made to present authentic
and real information about the company and its financial position.

PLACE : PUNE SAYED ABDUL HAMID

DATE :

2
ACKNOWLWDGMENT

I would like to thank respected pr. Rasika Naike for giving me such a wonderful
opportunity to expand my knowledge through this project and giving me guidelines
to resent a project report. It helped me a lot to realize of what we studied. Secondly,
I would like to thank my college librarian staff for proving reference books and other
study notes. I would Also like to thank SAVITRIBAI PHULE PUNE
UNIVERSITY website to giving us project work guideline which helps a lot for
doing our project in prescribed manners. I would like to thank my parents who
patiently helped me as I went through my work and thank to my friends who helped
to modify and eliminate some of the irrelevant or unnecessary stuffs. They helped
me to make my work more organized.

SAYED ABDUL HAMID

3
 INDEX

SR. CHAPTER PAGE NO.

NO.

1. INTRODUCTION

2. COMPANY PROFILE

3. RESEARCH METHODOLOGY

4. REVIEW OF LITERATURE

5. DATA ANALYSIS AND

INTERPRETATION

6. FINDINGS, CONCLUSION AND

SUGGESTION

7. ANNEXURE AND BIBLIOGRAPHY

4
SR. NO CONTAINTS PAGE NO.

1. Introduction
1.1. Meaning and Definition
1.1.1. Meaning
1.1.2. Definition
1.2. Nature of Ratio Analysis
1.3. Objective Of Ratio Analysis
1.4. Scope of Ratio Analysis
1.5. Steps
1.6. Guideline for use of ratio
1.7. Principles of Ratio Selection
1.8. Types of Ratio
1.8.1. Liquidity Ratio
1.8.2. Capital Structure Ratio
1.8.3. Profitability Ratio
1.8.4. Activity Ratio
1.9. Advantages
1.10. Limitations

2. Company profile
2.1. Company Profile
2.2. Corporate Vision
2.3. Corporate Mission
2.4. Organization Structure
2.5. Borrowings
2.7.Operations
2.8. Products & Services

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3. Research Methodology
3.1. Introduction Of the Study
3.2. Statement Of Problem
3.3. Objective of the study
3.4. Need of the study
3.5. Research Design
3.6. Data collection
3.6.1. Secondary Data
3.7.Tools use for the study
3.8. Limitations of the study
4. Review of Literature
5. Data Analysis and Interpretation
5.1. Current Ratio
5.2. Quick Ratio
5.3. Proprietary Ratio
5.4. Net Profit margin
5.5. Cash Ratio
5.6. Return on Assets Ratio
5.7. Return on Shareholders Fund Ratio
5.8. Debt to equity Ratio
5.9. Total Assets turnover Ratio
5.10. Working Capital Turnover Ratio
6. Findings, Conclusions and Suggestions
6.1. Findings
6.2. Conclusions
6.3 Suggestions

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 List of Table

SR. NO. CONTAINTS PAGE NO.

5.1 Current Ratio

5.2 Quick/Liquid Ratio

5.3 Proprietary Ratio

5.4 Net Profit Margin Ratio

5.5 Cash Ratio

5.6 Return on Assets Ratio

5.7 Return on Shareholder s Fund Ratio

5.8 Debt to Equity Ratio

5.9 Total Assets Turnover Ratio

5.10 Working Capital Turnover Ratio

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 List of Graphs

SR. NO. CONTAINTS PAGE NO.

5.1 Current Ratio

5.2 Quick/Liquid Ratio

5.3 Proprietary Ratio

5.4 Net Profit Margin Ratio

5.5 Cash Ratio

5.6 Return on Assets Ratio

5.7 Return on Shareholder s Fund Ratio

5.8 Debt to Equity Ratio

5.9 Total Assets Turnover Ratio

5.10 Working Capital Turnover Ratio

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 CHAPTER 1
INTRODUCTION
1.1. Meaning and Definition
A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken
from an enterprise’s financial statements. Often used in accounting, there are many standard ratios
used to try to evaluate the overall financial condition of a corporation or other organization.
Financial ratios may be used by managers within a firm, and by a firm’s creditors. Financial
analysts use financial ratios to compare the strengths and weakness in various companies. If shares
in a company are traded in a financial market, the market price of the shares is used in certain
financial ratios.

Ratios can be expressed as a decimal value, such as 0.10 or given as an equivalent percent value,
such as 10%. Some ratios are usually quoted as percentage, especially ratios that are usually or
always less than 1, such as quoted as decimal numbers, especially ratios are usually more than 1,
such as P/F ratio; these letter are also called multiples. Given any ratio, one can take its reciprocal;
if the ratio was above 1, the reciprocal will be below 1, and conversely. The reciprocal express the
same information, but may be more understandable: for insurance, the earnings yield can be
compared with bond yields, while the P/F ratio cannot be: For example, a P/F ratio of 20
corresponds to an earnings yield of 5%.

1.1.1. Meaning:
Ratio analysis is a widely-used tool of financial analysis. It can be used to compare the risk and
return relationship of firms of different sizes. It is defined as the systematic use of ratio to interpret
the financial statements so that the strengths and weaknesses of a firm as its historical performance
and current financial condition can be determined. The term ratio refers to the numerical or
quantitative relationship between two items/variables. The relationship can be expressed as (i)
percentages, say, net profits are 25% of sales( assuming net profit of Rs. 25,000 and sales of Rs.
1,00,000), (ii) fraction( net profit is one-fourth of sales) and (iii) proportion of numbers ( the
relationship between net profit and sales is 1:4). These alternative method of expressing items
which are related to each other are, for purpose of financial analysis, referred to as ratio analysis.
It should be noted that computing the ratios does not add any information not already to as ratio
inherent in the above figures of profits and sales.

A ratio analysis is a quantitative analysis of information contained in a company’s financial

statements. Ratio analysis is used to evaluate various aspect of company’s operating and financial
performance such as its efficiency, liquidity, profitability and solvency. Financial

9
ratios are useful tools that help companies and investors analyze and compare relationships
between different prices of financial information across an individual company’s history, an
industry, or an entire business sector. Numbers taken a company’s income statement, balance
sheet, and cash flow statement allow analysis to calculate several types of financial ratios for
different kinds of business intelligence and information can provide meaningful information on
company performance to a firm’s management as well as outside investors. Calculating the ratios
is relatively easy; understanding and interpreting what they say about company’s financial status
taken a bit more work. Ratios serve as a comparative tool of analysis for liquidity, profitability,
debt, and asset management, among other categories—All useful areas of financial statement
analysis. Companies typically start with industry ratios and data from their own historical financial
statement to established a basis for ratio comparison.

The rationale of ratio analysis lies in the fact it makes related information comparable. A single
figure by itself has no meaning but when expressed in terms of a related figure, it yield significant
inference. For instance, the fact that the net profit of a firm amount to, say Rs. 10 lakhs throws on
light on its adequacy or otherwise. Analysis compare the ratios for a given firm to the ratios of
other firm in the same industry and against previous quarters or year of historical data for the firm
itself. Performing an accurate financial ratio analysis and comparison helps companies gain insight
into their financial position so that they can make necessary financial adjustment to enhance their
financial performance and financial health of a company by using data from the current and
historical financial statements. The data retrieved from the statements is used to – compare a
company’s performance over time to assess whether the company is improving or deteriorating;
compare a company’s financial standing with the industry average; or compare a company to one
or more other companies operating in its sector to see how the company stacks up.

Financial ratios are a great way to quickly assess a company’s health before digging deeper into
its financial statements. Price-earning ratios can provide insights into valuation, while debt-
coverage ratios can tell investors about potential liquidity risk. If you are interested in learning
more about financial ratios. Invest fundamental analysis course provides an in-depth introduction
to the topic with over five hours of on demand video, exercises and interactive content.

1.1.2. Definition:
Robert Anthony :-
Robert Anthony defines, “ One number expressed in terms of another”.

10
Ratios is a fraction whose numerator is the antecedent and denominator the consequent. It is simply
an expression of one number in terms of another. It may also be defined as the relationship or
proportion that one amount bears to another, the first number being the numerator and the later.
Another explanation of the ratio may be the relation of the later to the earlier amount and computed
by dividing the amount for the date or period by the amount of the earlier date or period.

1.2. Nature of ratio analysis :

The ratio is calculated by dividing one figure by the other figure. It may expressed in any of the
three ways – ‘Times’, ‘Proportion’, or ‘Percentage’ according to the convenience or suitability.

A more meaningful financial analysis involves ratios and their comparison to a business
concern i) over a period of year.

ii) against another unit

iii) against the industry as a whole

iv) against the predetermined standards,

v) For one department or division against another department or division of the same unit.

In fact, Ratio Analysis does not provide an end in itself, but only a means in understanding of the
business concern’s financial position. The nature of ratio analysis indicates that quantitative ratio
analysis does not provide solutions for all the problems faced by s financial manager, unless
several ratios, each of a period of time. In this context, index analysis and analysis of time series
of financial ratios are helpful tools.

Actually, for tackling any problem, initially, one should determine what ratios would be helpful in
throwing light on the above situation and compute only such ratios.

Several ratios have some common element and some items have some items tend to move in
harmony because of some common underlying factor. Through industry averages and other
yardsticks are commonly used in financial ratios, it is some what difficult to judge whether a
certain ratio is ‘Good’ or ‘Bad’.

1.3. Objective of Ratio Analysis:

Important objectives of Ratio Analysis are follows:

1. To provide the necessary basis for inter-firm comparison as well as intra-firm

comparison.
Inter-firm comparison-
a) Between one company and its competitor.

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 b) Between one company and the best company in the industry.
c) Between one company and the global average.
d) Between one company and the average performance in the industry.

2. To provide the necessary basis for inter period comparison

Inter period comparison
a) Between two years.
b) Between two months.
c) Between two quarters.
d) Between ‘X’ month of the current year and ‘X’ month of previous year.

3. To help in providing a part of information needed in the process of decision making.

4. To focus on facts on a comparative basis and facilitate drawing of conclusions relating to

the performance of a firm.

5. To evaluate the performance of a firm in determining the important aspects of a business

such as liquidity, solvency, operational efficiency, overall profitability, capital gearing etc.

6. To throw light on degree of efficiency in the management and the effectiveness in the
utilization of its assets.

7. To provide way for effective control of the enterprise in the matter of achieving the
physical and monetary targets.

8. To help the management in discharging its basic functions like forecasting, planning, co-
ordination, communication, control etc.

9. To promote co-ordination among the departments and the staff by a study of performance
and efficiency of each department.
10. To point out the financial condition of a business whether it is very strong, good,
questionable or poor and enables the management to take necessary steps.

11. To act as an index of the efficiency of an enterprise.

1.4. Scope of RatioAnalysis :

2. Ratio analysis is a technique of analysis and interpretation of financial statements.

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3. It is the process of establishing and interpreting various ratios for helping in making certain
decision.

4. However, ratio analysis is not an end in itself. It is only means of better understanding of
financial strengths and weakness of a firm.

5. Calculation of mere ratios does not serve any purpose, unless several appropriate ratios are
analyzed and interpreted.

6. There are a number of ratios which can be calculated from the information given in the
financial statements, but the analyst has to select the appropriate data and calculate only a
few appropriate ratios from the same keeping in mind the objective of analysis.

7. The ratios may be used as a system like blood pressure, the pulse rate or the body
temperature and their interpretation depends upon the caliber and competence of the
analyst.

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1.5. Steps:

STEPS IN RATIO
ANALYSIS

1. The first task of financial analysis is to select th

einformation relevent to the decision under
consideration from the statements and calculates
appropriate ratios.

2. To compare the calculated ratios with the

ratios of the firm relating to the past

3. To interpretation, dwrawing of inferences and

report writing conclusions are drawn after
comparison in the shape of report or
recommended courses of action.

1.6. Guidelines or precautions for use of ratios :

The calculation of ratios may not be a difficult task but their use is not easy. Following
guidelines or factors may be kept in mind while interpreting various ratios is

 Accuracy of financial statements

 Objective or purpose of analysis
 Selection of ratios
 Use of standards
 Caliber of the analysis

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1.7. Principles of Ratio Selection:
The following principles should be considered before selecting the ratio:

1. Ratio should be logically inter-related.

2. Ratio must measure a material factor of business.

3. Cost of obtaining information should be borne in mind.

4. Ratio should be in minimum numbers.

5. Ratio should be facilities comparable.

1.8. Types of ratios:

Ratios can broadly be classified into four groups i.e. Liquidity capital, Structure, leverage,
profitability and activity respectively.

1.8.1. Liquidity Ratio:

Liquidity ratios measure the ability of a firm to meet its short-term obligations, and
reflect its short-term financial strength or solvency. Important Liquidity ratios are
1. Current ratio
2. Quick or Acid-Test ratio.

Current ratio is the ratio of total current assets to total current liabilities. A satisfactory
current ratio would enable a firm to meet its obligations even if the value of the current
assets decline. The quick ratio or acid test ratio takes into consideration the different
liquidity of the components of current assets. It represents the ratio between quick current
assets and total current liabilities.

1.8.2. Capital Structure or Leverage Ratios:

Capital Structure or Leverage Ratios throw light on the long-term solvency of a firm. This
is reflected in its ability to assure the long-term creditors with regard to periodic payment
of interest ,and the payment of a loan on maturity, or in pre-determined installments at due
date. There are two types of such ratios: i) Debt equity or Debt assets
ii) Coverage. The first type is computed from the balance sheet and reflects the relative
contribution/ stake of owners and creditors in financing the assets of the firm. The second
category of such ratios is based on the income statement and shows the number of time
fixed obligations are covered by earnings before interest and taxes.

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1.8.3. Profitability Ratios:

The profitability Of a firm can be measured by the profitability ratios. Such ratios can be
computed either from sales or investment. The profitability ratios based on sales are : i)
profit Margin (gross and net) and ii) Expenses or operating ratios. They indicate the
proportion of sales consumed by operating costs, and the proportion available to meet
financial and other expenses. The profitability related to investments include : i) Return on
assets, ii) Return on capital employed and iii) Return on shareholders equity, including
earning per share, dividend payout ratio, earning end dividend yield.

1.8.4. Activity or Turnover or Efficiency Ratio:

The last category of ratios is the activity ratios. They are also known as the efficiency or
turnover ratios. Such ratios are concerned with measuring the efficiency in assets
management. The efficiency with which assets are managed/ used is reflected in the speed
and rapidity with which they are converted into sales. Thus, the activity ratios are a test of
relationship between sales or cost of goods sold and assets. Depending upon the type of
assets, activity ratios may be: i) inventory or stock turnover ii) Receivable or turnover, and
iii) Total assets turnover.

1.9. Advantages:

Ratios analysis helps management to pinpoint specific areas that reflect improvement or
deterioration as well as defect any trouble spots that may prevent the attainment of
objectives. The interested parties frequently undertake examination of these three areas to
evaluate management ability to maintain a satisfactory balance among them, and to
appraise the efficient and effectiveness with the which management directs the firm’s
operations.
A) It guide the management in formulating future financial planning and policies.

B) Ratio analysis will help validate or disprove the financing.

C) They summarize into comparative figures, thus helping the management to compare
and evaluate the financial position of the firm and the results their decisions.

D) It simplifies complex accounting statement and financial data into simple ratios of
operating efficiency, financial efficiency, solvency, ling-term position etc.

E) It throws light on the efficiency of the business organization

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F) Ratio analysis help identify problem area and bring the attention of the management to
such areas. Some of the information is lost in the complex accounting statements, and
ratios will help pinpoint such problem.

G) It permits comparisons of the firms figures with data for similar firms, and possibly
with industry-wise data.

H) Allows the company to conduct companies with other firms, industry standard, intra-
firm comparison better understand its fiscal position in the economy.

I) It ensures effective cost control

J) It provide greater clarity, perspective, or meaning to the data and it brings out
information not otherwise apparent.

K) It measures profitability and solvency of a concern.

L) It permits monetary figures of many digits to be condensed into two or three digit
which enhances the managerial efficiency.

M) It helps investment decisions.

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1.10. Limitations of Ratio Analysis :
In using ratios, the analyst must keep a few general limitations in mind. The main limitations
attached analysis are:

A) It lacks standard values for the ratio, therefore scientific analysis is not possible.

B) The firm can make some year-end changes to their financial statements, to improve their
ratios. Then the ratios end-up being nothing but window dressing.

C) It gives only the relationship between different variables and the actual magnitudes are
not known through ratios.

D) Ratio ignores the price level changes due to inflation. Many ratios are calculated using
historical costs, and they overlook the changes in price in price level between the period.

E) As there are no standards with which to compare, it fails to throw light on the efficiency
of any activity of the business.

F) Ratios are derived from the financial statements and naturally reflect their drawbacks.

G) It does not take into consideration the market and other changes.

H) Accounting ratios completely ignores the qualitative aspects of the firm. They only take
into consideration the monetary aspect.

I) There are no standard definitions of the ratios. So firms may be using different formulas
for the ratios.

J) Accounting ratios do not resolve any financial problems of the company. They are a
means to the end, not the actual solution.

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 CHAPTER-2
COMPANY PROFILE

Reliance Industries Ltd

2.1 Company Profile

Reliance Industries Limited's motto "Growth is Life" aptly captures the ever-evolving
spirit of Reliance. The company has evolved from being a textiles and polyester company
to an integrated player across energy, materials, retail, entertainment, and digital
services. Reliance's operations span from the exploration and production of oil and gas
to the manufacture of petroleum products, polyester products, polyester intermediates,
plastics, polymer intermediates, chemicals, synthetic textiles, and fabrics. Reliance's
products and services portfolio touches almost all Indians on a daily basis, across
economic and social spectrums. The company serves about 300 million customers and
is India's largest private sector corporation.,

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Projects Division and Finance & Financial Operations Division..

TYPE private

Traded As NSE :relience

Industry Financial

Founded 8 May 1973

Maharashtra

Headquarters Mumbai

Key Managerial • Nita Ambani. Non executive, Non

personnel independent director
• Hital R. Miswani. Excutive director
• Dipak C. Jain

Owner Dhirubhai H. Ambani

Revenue 5.03 lakh crores INR. 2021

Operating Income 5.39 lakh crore

Net Income 53223 crore INR

Total assets 13.21 lakh crores INR

Total equity 6.94 lakh crores INR

Numbers of employees 195618

Website WWW.RIL.COM

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2.2. VISION
To be totally dedicated and building a reputation as the most professional and highly value
circuit board supplier to our customer base as an industry partner.

2.3. MISSION
Reliance industries ltd will continue to invest on people, the most up to date processes and enhance
the production capabilities to add real value for the customers.

Reliance industries ltd never compromise environmental protection and strive to provide a genuine
one stop service for our customers with a focus on continual cost reduction and improvent.

2.4. Organization structure

Structure of Reliance: Mukesh Ambani’s Reliance Industries Limited All Products and Brands
Manufacture of Petroleum Products, Polyester Products, Polyester Intermediates, Plastics, Polymer
Intermediates, Chemicals, Synthetic Textiles and Fabrics. Mukesh Ambani owns 155 brands and
products, from Reliance Industries Ltd / Petroleum, Polyester to Fabric and Digital.

21
 2.5. Borrowings
• RIL’s fund-raising includes ₹1,52,055 crore equity from 13 investors, including Facebook and
Google, for a 33 per cent stake in Jio Platforms; ₹53,124 crore from a rights issue in May, and
₹47,215-crore equity raised from nine investors for a 10.52 per cent stake in Reliance Retail
Ventures. Also in July, BP plc acquired a 49 per cent stake in RIL’s fuel retailing business for
$1billion (₹7,629 crore).

• On the face of it, RIL did indeed raise funds in excess of its stated net debt, supporting its claim of
net debt-free status.

2.6. Products And Services :

Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural
resources, retail, and telecommunications.

Reliance Industries Products Petroleum Natural Gas Petrochemicals Textiles Retail

Telecommunication Media Television Entertainment Services Software

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 CHAPTER-3
RESEARCH METHODOLOGY

3.1. Introduction

The methodology is the general research strategy that outline the way in which research is to be
undertaken and among other things, identifies the method to be used in it. These method, described
in the methodology, define the means or modes of data collection or sometimes, how a specific
result is to be calculated. Methodology does not define specific methods, even through much
attention is given to the nature and kinds of processes to be followed in a particular procedure or
to attain an objective.

When proper to a study of methodology, such processes constitute a constructive generic

framework, and may therefore be broken down into sub-processes, combines, or their sequence
changes.

A paradigm is a similar to a methodology in that it is also a constructive framework. In

theoretical work, the development of paradigms satisfies most or all of the criteria for
methodology. An algorithm, like a paradigm, is also a type of constructive framework, meaning
that the construction is a logical, rather than a physical, array of connected elements.

Any description of a means of calculation of a specific result is always a description of a

method and never a description of a methodology. It is thus important to avoid using methodology
as a synonym for method or body of method. A methodology is the design process for carrying
out research or the development of a procedure and is not in itself an instrument, or method or
procedure for doing things.

3.2. Statement of problem :

“A study of Ratio analysis in RIL Ltd”.

23
3.3. Objective of the study :

1. To understand the financial position of Reliance Industry Ltd.

2. To know the liquidity position of Reliance Industry Ltd.

3. To know net profit ratio of Reliance Industry Ltd.

4. Evaluating company’s performance relating to ratio analysis.

3.4. NEED OF THE STUDY :

• The study has great significance and provides benefits to various parties whom directly or
indirectly with the company.

• To express the relationship between different financial aspects in such a way that it allows
the user to draw conclusion about the performance, strength and weakness of the company.

• To diagnose the information contained in financial statement so as to judge the profitability

of the firm.

• The study helps to know a liquidity, solvency, profitability and turnover position of the
company.

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3.5. RESEARCH DESIGN :
Is the set of method and procedures used in collecting and analyzing measures of the variables
specified in the research problem research. The design of a study defines the study type(
descriptive, correlation, semi-experimental, experimental, review, meta-analytic) and sub-type (
e.g., descriptive-longitudinal case study), research problem, hypothesis, independent and
dependent variables, experimental design, and if applicable data collection method and a statistical
analysis plan. Research design is the framework that has been created to find answer to research
questions.

3.6. Data collection :

The research is fully based on secondary data.

3.6.1. SECONDARY SOURCES

Secondary data is generated with the help of following

Annual report : Majority of information gathered from data exhibited in the annual reports of the
company. These include annual report of five year.

Website :

moneycontrol.com

3.7. Tools use for the study

Data Analysis Interpretations :

TOOLS AND TECHNIQUES

Ratio Analysis

Financial statement of company

Company annual report’s

Graphical method

25
Methods of Analysis :
1. Current Ratio
2. Quick Ratio
3. Proprietary Ratio
4. Net Profit Margin Ratio
5. Cash Ratio
6. Return on Assets Ratio
7. Return on Shareholder s Fund Ratio
8. Debt to Equity Ratio
9. Total Assets Turnover Ratio
10. Working Capital Turnover Ratio

3.8. LIMITATION OF THE STUDY :

1. The study was limited to only five years.
2. The study is purely based on secondary data which were taken primarily from
Published annual report of Reliance Industry Ltd.
3. There is no set industry standard for comparison and hence the inference is made on
general standard.
4. The ratio is calculated from past financial statement and these are not indicators of
future.

26
 CHAPTER – 4
REVIEW OF LITERATURE

J. Hema and V.Ariram (2016), “Fundamental analysis with special reference to pharmaceutical
companies listed in NSE”, this study is focused on the fundamental analysis of 3 randomly selected
pharmaceutical companies that are listed in the NSE. The data for the analysis is collected for a period of
5 years from 2011 to 2015. The fundamental analysis consists of 3 parts namely EIC analysis. Ratio
analysis (EPS, DPS, Net profit margin and Debt to equity ratio) is used as the tool to conclude the result
of the study. Industrial analysis shows that the Indian Pharmaceutical industry has high growth rate.
Company analysis revealed that Lupin and Torrent pharma are financially stable during the study period.
The economic analysis indicates the factors that influence the security market. Keerthi Gururaj
Kulakarani and Gururaj Anand Kulkarani (2013-2014), “Fundamental analysis vs technical analysis: a
achoice of sectoral analysis”, the paper explores the analytical tools in evaluating the sectoral stocks. It
makes a comparison © 2019 JETIR February 2019, Volume 6, Issue 2 www.jetir.org (ISSN-2349-5162)
JETIR1902504 Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org 24 on
the fundamental analysis and the technical analysis to find out the importance of them in the decision of
making investments in the securities.

Prof.EricNagi

A Professor in the department of management and marketing at The Hong Kong Polytechnic
University is his current research interests are in the areas of E-commerce, supply chain
management, decision support system and RFID technology and applications. He has publishes
paper in a number of international journals including MIS Quarterly, Journal of operations
management, Decision Support System, IEEE Transactions on System, Man and cybernetics,
information and management production & operations management and others. He is an associate
editor of European journal of information systems and serves on editorial board of six international
journals.

27
Dr. Yong Hu
Is currently associate professor and chair in the department of BBA, and director of Institute of
Business intelligence and Knowledge Discovery at the Guangdong University Of Foreign studies.
He received his B. Sc. In computer science, M. Phil and ph.d in management information system
from Sun YatSen University. His research interests are in the area of business intelligence,
software project risk management, BBA and decision support system. He has publishes in a
number of journals.

28
 CHAPTER -5
DATA ANALYSIS AND INTERPRETATION

Introduction :

Ratio analysis is a powerful tool of financial analysis. Alexander all first presented it in 1991 in
Federal Reserve Bulletin. Ratio Analysis is a process of comparison of one figure against other,
which makes a ratio and appraisal of the firm’s operations. The term ratio refers to the numerical
or quantitative relationship between two accounting figures. Ratio analysis of financial statements
stands for the process of Determining and presenting the relationship of items and group of items
in the statement. Ratio analysis is a systematic use of ratios to interpret / Assess the performance
and status of the firm.

Note :I have used ratio analysis in this project in order to substantiate the meaning Ratio
analysis. For this, I used some of the ratios to get the required output.

29
 5.1. Current Ratio :

This Ratio indicates the solvency of the business i.e. ability to meet the liabilities of the
business as and when they fall due. This ratio also indicates how much current assets are
there as against each rupee of Current Liabilities. The current ratio is a liquidity ratio that
measures whether or not a firm has enough resources to meet its short-term obligations. A
ratio of greater than one means that the firms have more current assets than current
liabilities claims against them.

Current Ratio = Current assets / Current Liabilities

CURRENT ASSETS CURENT CURRENT

YEAR LAIBILITIES RATIO

Current ratio 25,169,68 23,212.06 1.08

2016-17

30,534.68 30,018.84 1.02

2017-18

2018-19 44,399.19 36,495.47 1.22

2019-20 50,657.53 38,531.43 1.31

45,042.84 47,438.80 0.95

2020-21

Interpretation :
The current ratio with 2:1 or more is considered as satisfactory position of the firm. The above
table shows from 2016-17 to2018-19 the current ratio was about to 1:1 in year 2016-17 it was
1.08 in 2015-16 it was 1.02 2016-17 was 1.22 in 2017-18 it was 1.31 & in year 2018-19 it was
0.95 it shows the company is insolvent due to large current liabilities.

30
5.2. Quick / Liquid Ratio

As regard to the ability to honour day today commitment, liquid ratio is better tool, It
is the ratio between liquid assets and liquid liabilities.An ideal liquid ratio is 1 :1. An
assets is liquid if it can be converted in to cash immediately without a loss of value;
Inventories are considered to be less liquid, because inventories normally require some
time for realizing into cash.

Quick Ratio = Quick Assets / Current liabilities

Quick Assets= Current assets – Inventory

Table 5.2. : Table showing Quick Ratio

Year Quick Assets Current Quick Ratio

(In Cr.) liabilities
(In Cr.)
2016-17 25,169,6 23,212.06 1.08

2017-18 30,534.68 30,018.84 1.02

2018-19 44,399.19 36,495.47 1.22

2019-20 50,657.53 38,531.43 1.31

2020 45,042.84 47,438.80 0.95

31
 QUICK RATIO
1.4

1.2

0.8
QUICK RATIO
0.6

0.4

0.2

0
2016-17 2017-18 2018-19 2019-20 2020-21

Graph No 5.2. Quick Ratio

Interpretation:
The ideal ratio 1:1 from the above table the quick ratio is about to 1:1 for year 2016-17 it was
1.08 for year 2016-17 it was 1.02 for the year 2017-18 it was 1.22 for year 2019-120 it was 1.31
and for the year 2020-121 it was 0.95.

Due to inventory absenteeism the current and quick ratio is same. But for the year 20-18 quick ratio
0.95 it is quite less than ideal ratio.

32
5.3. Proprietary Ratio

It is a primarily, the ratio between proprietor’s funds and Total assets. It indicates the
strength of the funding of the of the company. As a vary rough measure, it may be
suggested tat 2/3rd to 3/4th of the total assets should be financed by proprietor funds. A high
proprietary ratio is however frequently indicative of over capitalization and an excessive
investment in fixed assets in relation to actual needs. A ratio nearing 100% often gives low
earning per share and consequently, a low rate of dividend to shareholders. proprietary
ratio indicate the extent to which assets are financed by owners funds.

Proprietary Ratio = Proprietors’ Fund / Total assets.

Table 5.3. : Table showing proprietary Ratio

Year Proprietors’ Total Assets Proprietary

Fund (In Cr.) Ratio
(In Cr.)

2016-17 27,522.27 194,319.71 0.14

2017-18 32,411.35 2,28,911.65 0.14

2018-19 36,028.31 2,47,219.75 0.14

2019-20 36,844.91 2,59,419.61 0.14

2020-21 40,201.74 2,88,175.03 0.14

33
 PROPRIETARY RATIO

0.14

0.12

0.1

0.08
PROPRIETARY RATIO
0.06

0.04

0.02

0
2016-17 2017-18 2018-19 2019-20 2020-21

Graph No .5.3. Proprietary Ratio

Interpretation:
The proprietary ratio shows the strength of the funding of the company. Ratio nearing 100% or
1:1 often gives low earnings The table shows the proprietary ratio for the year 2016-17 was 0.14
for the year 2017-18 it was 0.14. 2018-19 it was 0.14 and also for the year 2019-2020 the
proprietary ratio also 0.14 and for the year 2020-21 the ratio remains some 0.14 the proprietary
ratio are constant for all the five years.

34
5.4. Net profit Margin

Net Profit is that portion of Net Sales which remains to the owner or the shareholders
after all costs, charges, and expenses including income-tax, have been deducted. The
relationship between net profit to net sales is establishes by this ratio and is expressed in
percentage. This ratio shows the balances of profit left to proprietors, after all expenses
are meet with. This ratio normally ranges between 5% and 10%. Higher will be the ratio,
higher will be the profit left to shareholders.

Net Profit Margin Ratio = Net Profit after taxes / Net sales * 100

Table 5.4.: Table showing Net Profit Margin Ratio

Year Net Profit after Net Sales Net Profit

tax (In Cr.) margin Ratio
(In Cr.) %
2016-17 5,461.84 21,614.53 25.27
2017-18 600.04 24,952.88 24.06

2018-19 6,184.00 27,780.21 22.26

2019-20 2,236.10 27,289.86 8.19

2020-21 5,844.11 26,976.18 21.66

35
 NET PROFIT MARGIN RATIO

30

25

20

15 NET PROFIT MARGIN RATIO

10

0
2016-17 2017-18 2018-19 2019-20 2020-21

Graph no 5.4. Net profit margin Ratio

Interpretation:
The above table analysis that in year 2016-17 the net profit margin ratio is 25.27%. In year 2017-
18 it decreases to 24.06% in the year 2018-19 the Net profit ratio also decreases to 22.26% due to
less profit 2019-20 the net profit ratio is highly decreases to 8.19% due to high expenses and in
year 2020-21 the net profit ratio is increases to 21.66% cause of increase in net profit.

36
5.5. Cash Ratio

The cash ratio is the ratio of company’s total cash and cash equivalents to its current
liabilities. The information is useful to parties such as creditors when they decide how
much debt, if any, they would be willing to extend to the asking party. The cash ratio is
generally a more conservative look at a company’s liabilities than many other liquidity
ratios because other assets, including accounts receivable, are left out of the equation.

Cost Raito = Cash & Bank Balance + Current Investment/ Current

Liabilities

Table 5.5. : Table showing Cash Ratio

Year Cash & Bank Current Cash Ratio

Balance + Liabilities
Current (In Cr.)
Investment
(In Cr.)

2016-17 463.27 23,212.06 0.02

2017-18 5,871.4 30,018.84 0.19

2018-19 712.29 36,495.47 0.02

2019-20 5,125.35 38,531.43 0.13

2020-21 1,851.32 47,438.80 0.04

37
 CASH RATIO

0.2
0.18
0.16
0.14
0.12
0.1 CASH RATIO

0.08
0.06
0.04
0.02
0
2016-17 2017-18 2018-19 2019-20 2020-21

Graph No 5.5. Cash Ratio

Interpretation:
The current assets which are ready in the from of cash are consider as absolute liquid assets.
Here the cash and bank balance and current investment are absolute liquid assets for the year
2016-17 the ratio was 0.02 for the year 2017-18 the ratio was increased to 0.20 due to increment
in cash and bank balances. For the year 2018-19 the ratio was declines to 0.02 cause of decreases
in cash and bank balance for the year 2019-20 the ratio was little increase the ratio was 0.13
cause of increment in cash and current investment and for the year 2020-21 the ratio again
decreases to 0.04 cause of decreases in cash and bank balance

38
5.6. Return On assets Ratio

Return on assets (ROA) is an indicator of how profitable a company is relative to its total
assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company’s
management is at using its assets to generate earnings. Return on assets is displayed as a
percentage.

Return on assets = Net Profit/ Total assets * 100

Table 5.6. : Table showing Return on assets Ratio

Year Net Profit Total assets Return on

(In Cr.) (In Cr.) assets
%
2016-17 5,461.84 1,94,391.71 2.81

2017-18 6,004.40 2,28,911.65 2.62

2018-19 6,184.00 2,47,219.75 2.50

2019-20 2,236.10 2,59,419.61 0.86

2020-21 5,844.11 2,88,175.03 2.03

39
 RETURN ON ASSETS RATIO

2.5

1.5 RETURN ON ASSETS RATIO

0.5

0
2016-17 2017-18 2018-19 2019-20 2020-
212021

Graph No 5.6. Return on Assets Ratio

Interpretation:
The above table shows the Return on assets for the year 2016-17 was 2.81 and in the year 2017-
18 the ratio is quite declines to 2.62 due to total assets was highly increases in compare tonet profit
in year 2018-19 the ratio also quite decline to 2.50 cause of increase in assets and in the year 2019-
20 the ratio is declineto 0.86 cause net profit decreases and in the year 2020-21 the return on assets
was increases to 2.03

40
5.7. Return on shareholders Fund Ratio

The return on shareholders equity ratio shows how much money is returned to the owners
as a percentage of the money they have invested or retained in the company. It is one of
five calculation used to measure profitability. Return on shareholders equity measures the
return on the owners (both preference and equity shareholders) investment in the firm

Return on shareholders Fund Ratio = Net profit after tax/ Shareholders

fund *100

Table 5.7 : Table showing Return on Shareholders Fund Ratio

Year Net Profit after Shareholders Return on

tax Fund shareholders
(In Cr.) (In Cr.) Fund
%
2016-17 5,461.84 27,522.27 19.84

2017-18 6,004.40 32,411.35 18.52

2018-19 6,184.00 36,028.31 17.16

2019-20 2,236.10 36,844.91 6.07

2020-21 5,844.11 40,201.74 14.54

41
 RETURN ON SHAREHOLDERS FUND RATIO

20

18

16

14

12
RETURN ON SHAREHOLDERS FUND
10
RATIO
8

0
2016-17 2017-18 2018-19 2019-20 2020-21

Graph no. 5.7. return on Shareholders Fund Ratio

Interpretation:
This is the ratio between net profit and shareholders funds for the year 2016-17 the return on
shareholders fund was 19.84% for the year 2017-18 the ratio was decline to 18.52% for the year
2018-19 the ratio also decline to 17.16% and for the year 2019-20 the ratio was highly decreases
to 6.07% due to lower profit earned by the company and for the year 2020-21 the ratio increases
to 14.54% due to increment in profit we can see that the first 4 years the ratio was rapidly decreases
but last year it was increased.

42
5.8. Debt to Equity Ratio

The debt to equity ratio is calculated by dividing a company’s total liabilities by its
shareholder equity. These numbers are available on the balance sheet of a company’s
financial statement. The ratio used to evaluate a company’s financial leverage. This ratio
is important metric used in corporate finance. Debt equity ratio measures the ratio of long-
term or total debt to shareholders equity.

Debt to Equity Ratio = Long Term Debt / Shareholders Fund

Table 5.8 : Table showing Debt to equity Ratio

Year Long Term Shareholders Debt to Equity

Debt Fund
(In Cr.) (In Cr.)
2016-17 1,42,491.57 27,522.27 5.18
2017-18 1,64,995.41 32,411.35 5.09
2018-19 1,72,614.57 36,028.31 4.79
2019-20 1,75,103.36 36,844.91 4.75
2020-21 1,92,054.48 40,201.74 4.78

43
 DEBT TO EQUITY RATIO

5.2

5.1

4.9
DEBT TO EQUITY RATIO
4.8

4.7

4.6

4.5
2016-17 2017-18 2018-19 2019-20 2020-21

Graph No 5.8 Debt to equity ratio

Interpretation:
The above table analysis that in year 2016-17 the debt equity ratio was 5.18 in the year 2017-18 it
was quite decline to 5.09 due to debt increases but shareholders fund is increases less than long
term debt in year 2018-19 the ratio decline to 4.79 cause of in proportion to shareholders fund, the
long term debt too increases. In year 2019-20 the ratio also decline to 4.75 and in the year 2020-
21 the ratio is quite same the ratio is 4.78. It shows long term debt continuously increases but in
compose to long term debt is it less.

44
5.9. Total Assets Turnover Ratio

The assets turnover ratio is an efficiency ratio measures a company’s ability to generate
sales from its assets by comparing net sales with total assets. The assets turnover ratio
measures the value of a company’s sales or revenues relative to the value of its assets. The
assets turnover ratio can be used as an indicator of the efficiency with which a company is
using its assets to generate revenue.

Total Assets Turnover Ratio = Sales /Total Assets.

Table 5.9 : Table showing Total Assets Turnover Ratio

Year Sales Total Assets Total Assets

(In Cr.) (In Cr.) Turnover Ratio
(in times)
2016-17 21,614.53 1,94,319.71 0.11
2017-18 24,952.88 2,28,911.65 0.11
2018-19 27,780.21 2,47,219.75 0.11
2019-20 27,289.86 2,59,419.61 0.10
2020-21 26,976.18 2,88,175.03 0.09

45
 Total Assests Turnover Ratio

0.12

0.1

0.08

0.06 Total Assests Turnover Ratio

0.04

0.02

0
2016-17 2017-18 2018-19 2019-20 2020-21

Graph No. 5.9 Total Assets Turnover Ratio

Interpretation:
The total assets turnover ratio is the ratio between sales and total assets the above table analysis
that the ratio for five years is generally not much variable for the year 2016-17 the ratio was 0.11
and next year 2017-18 the ratio remains same to 0.11 times also for the year 2018-19 the ratio also
same 0.11 times for the year 2019-20 the ratio was little declines to 0.10 times and also for the
year 2020-21 the ratio declines to 0.09 times.

46
5.10. Working Capital Turnover Ratio
Working Capital turnover is a ratio that measures how efficiency a company is using its
working capital to support a given level of sales. Also referred to as net sales to working
capital, work capital turnover shows the relationship between the funds used to finance a
company’s operations and the revenues a company generates as a result.

Working capital Turnover Ratio = Sales/ Working Capital

Table 5.9 : Table showing Working capital Turnover Ratio

Year Sales Working Capital Working capital

(In Cr.) (In Cr.) Turnover Ratio
(in times)
2016-17 21,614.53 1,957.62 11.04
2017-18 24,952.88 515.84 48.37
2018-19 27,780.21 7,903.72 3.51
2019-20 27,289.86 12,126.10 2.25
2020-21 26,976.18 2,395.96 11.26

47
 Working Capital Turnover Ratio

50
45
40
35
30
25 Working Capital Turnover Ratio
20
15
10
5
0
2016-17 2017-18 2018-19 2019-20 2020-21

Graph No. 5.10. Working Capital Turnover Ratio

Interpretation:
Working Capital ratio is the ratio between sales and working capital for the year 2016-17 the ratio
was 11.04 times. For the year 2017-18 the ratio was highly increased to 48.37 times due to very
low working capital. For the year 2018-19 the ratio was highly decreased to 3.51 times due to high
working capital. For the year 2019-20 the ratio also decreased to 2.25 times due to high working
capital and for the year 2020-21 the ratio goes to 11.26 times.

48
 CHAPTER-6
FINDING, CONCLUSION AND SUGGESTION
6.1. FINDING
On the overall evaluation at each and every aspect the following finding is found

• Current ratio five years is about to 1:1 which is less than the ideal ratio 2:1 it shows the
short term solvency of the company is lower.
• Quick Ratio for the five years 2013-14 to 2020-21 is same because of absence of
inventories.
• The proprietary Ratio for the five years are same it is 0.14:1. It shows that the company is
in undercapitalization and it has an excessive use of creditors fund to finance the business.
• Net Profit margin for the year 2016-17,2017-18, 2018-19 and 2020-21 is over 20% which
is good sign for business but in the year 2019-20 the net profit decreased to 8.19% due to
increased in expenses.
• The Cash Ratio of the business for the five years 2016-17 to 2020-21 is about to 0.02 to
0.19 it shows the absolute liquidity of the business is very less.
• For the year 2016-17, 2017-18, 2018-19 and 2020-21 the Return on Assets is 20..% to
3.00% the higher return is 2.81% for the year 2016-17 and the lower return is 0.86% for
the year 2019-20 due to lower net profit.
• The return on Shareholders Fund is continuously decreases for the year 2016-17 to 2020-
21 it get decreases due to increment in shareholders fund. In the year 2019-20 the return
was highly decreases to 6.07% due to lower profit.
• Debt to Equity Ratio is about to 5.18to 4.78 for five years. In comparison to shareholders
fund the long term debt is too high.
• Assets Turnover ratio for five years is near by 0.11 it indicates the assets of company is
very high but revenue from operation is too less.
• For the year 2017-18 the working capital get decreases therefore the working capital
turnover ratio increases to 48.37 times and in the year 2020-21 the current liability is higher
then current assets therefore working capital goes in minus figures.

49
6.2. CONCLUSION

The study of ratio analysis of Power Finance Corporation Limited.to analyzed the ratio.

The study of ratio analysis conducted on Power Finance Corporation analysis the various ratios of
the company. The financial performance of the company for the five years is analyzed that the
company is financially sound. Through the comparison of past result of the company from the year
2017-21 we comes to conclusion that liquidity position of the company is not satisfactory.
Company long term debts are too high. The assets of the company is high it is good sign for
company and company gives reasonable return to the shareholders which attract the investors.

50
6.3. SUGGESTION

• The Current and quick ratios are almost below the standard requirement so company should
work on decline the current liabilities. Company should increases it liquidity position.
• The company should work for control the expenses so the net profit will be increases.
• The company should decreases their debts it influences the business.
• Companies should try to sustain total assets turnover ratio at highest level as its indicates
well organized use of funds.
• Company should control and minimizes the current liabilities and maintains good working
capital.

51
 CHAPTER-7
ANNEXURE AND BIBLIOGRAPHY

Bibliography :
Reference Books
1. Management Accounting
M.Y. Khan, P.K. Jain
The McGrow Hill Companies
2. Management Accounting
Dr. SuhasMahajan
Dr. Mahesh Kulkarni
Nirali Publication
3. Cost & Management Accounting
Ravi M. Kishore
Taxman publication
4. Financial Ratios & Financial Statement Analysis
Jagdish R. Ralyanl
R.B. Bhatasna

5. Research Methodology

C.R. Kothari

New age international Publication

Website
www.pfcindia.com
www.moneycontrol.com
www.investopedia.com
www.rediffmoney.com

52
 ANNEXURE
Balance sheet of reliance industries Limited.
For the last 5 Years (Rs. in Crore)
LIABILITIES March,2021 March,2020 March,2019 March,2018 March,2017
Shareholders Fund
Share Capital 2,640.08 2,640.08 1,320.04 1,320.04 1,320.04
Reserve & Surplus 37,561.66 34,204.83 34,708.27 31,091.31 26,202.23
Total Shareholders 40,201.74 36,844.91 3,6028.31 32,411.35 27,522.27
Fund
Non Current Liabilities
Long Term Liabilities
Secured 13,691.52 20,106.17 19,869.75 20,786.66 2,2776.66
Unsecured 1,78,362.96 1,54,997.19 1,52,744.82 1,44,2018.75 1,19,714.91
Deferred tax 296.16 247.55 301.96 188.27 273.00
Liabilities(Net)
Long term Liabilities 5,931.40 6,143.07 548.85 333.81 347.62
Long Term Provision 2,252.45 2,549.29 1,230.59 963.97 473.19
Total Non Current 2,00,462.49 18,4043.27 1,74,695.97 1,66,481.46 1,43,585.38
Liabilities
Current Liabilities
Short Term Borrowing
-Secured 172.82 2543.48 1,928.17 0.24
-Unsecured 6,953.28 7,571.57 2,136.24 1,314.49
Trade Payables 17.04 2.54
Current Maturity Of L.T. 31,129.84 25,345.90 20,474.00 16,745.28 15,409.00
Borrow
Total outstanding dues of 359.29 120.55 69.65
creditors other than micro
enterprises & small
Enterprises
Other Current Liabilities 8,052.26 8,592.95 7,564.86 6,672.68 6,266.05
Short 741.31 1,928.55 815.39 529.43 219.74
TermProvisionProvisions
Total Current 47,438.80 38,531.43 36,495.47 27,928.84 23,212.06
Liabilities
Total Equity & 2,88,175.03 2,59,419.61 2,47,219.75 2,28,911.65 194,319.71
Liability

57
ASSETS March,2021 March,2020 March, 2019 March,2018 March,2017
Non Current Assets
Fixed Assets

Tangible 364.18 295.16 197.02 99.71 69.15

Intangible 6.00 1.22 1.46 1.79 2.45
Capital Work in 411.88 105.44 46.63 2.42 0.66
Progress
Non Current investment 876.06 1,819.64 1,819.23 23.80 23.60

Long Term loan 2,35,461.67 2,00,938.25 2,00,380.71 1,97,930.34 1,68,816.19

Other Non Current 6,012.42 5,602.37 375.51 318.91 237.98
Assets
Total Non Current 2,43,132.21 2,08,762.08 2,02,820.56 1,98,376.97 1,69,150.03
assets
Current Assets
Current Investment 1,070.78 1,325.53 410.74 504.04 3.83
Trade Receivables 385.30 279.56 111.21 28.59 7.04
Cash & Bank Balance 780.54 3,799.82 301.55 5,367.36 459.44
Short Term Loans
Secured 6,351.65 1,490.49 1,080.93 549.88 912.98
Unsecured 4,815.36 4,412.41 2,711.45 2,337.34 1,483.20
Other Current Assets
Current maturity of
L.T. Loan
Secured 21,467.78 28,659.49 12,203.39 10,725.25 15,114.80
Unsecured 5,126.66 5,045.28 21,431.03 5,588.58 2,928.95
Others 5,044.77 5,644.95 6,148.89 5,433..64 4,259.44
Total Current assets 45,042.84 50,657.53 44,399.19 30,534.68 25,169.68
Total Assets 2,88,175.03 2,59,419.61 2,47,219.75 2,28,911.65 1,94,319.71

58
 Profit & Loss Of Reliance Industrieslimited.
For the last 5 financial years (Rs. in Crore)
Particular March,2021 March,2020 March,2019 March,2018 March,2017
INCOME
Revenue From
Operation
Interest 25,870.01 26,333.11 27,099.83 24,589.49 20,980.45
Consultancy/Advisory 179.25 181.44 262.52 56.78
Services
Other Operating Income 604.62 457.21 136.21 159.82 634.08
Other Financial Services 322.30 318.10 281.65 146.79
26,976.18 27,289.86 27,780.21 24,952.88 21,614.53
OTHER INCOME 269.15 321.43 105.56 59.00 14.69
TOTAL INCOME 27,245.33 27,611.29 27,885.77 25,011.88 21629.22
EXPENSES
Interest, Finance& other 17,541.41 16,767.64 16,645.38 15,450.28 13,207.09
changes
Bonds issue expenses 28.45 26.58 33.44 31.40 79.09
Employee benefit 192.78 133.24 106.63 101.47 91.01
expenses
Provision 570.02 5112.33 1610.16 843.07 470.22
Provision for decline in 254.56 (7.41) 96.26 1.06 (0.15)
value of investment
CSR expenses 120.10 167.64 146.81 118.50 63.23
Other Expenses 107.02 105.29 61.97 14.45 89.31
Prior Period Items(Net) 1.04 1.47 (2.06) (2.14) (0.23)
Total Expenses 18,885.85 22,347.60 18,718.67 16,566.01 14,004.80
Profit before 8,359.48 5,263.69 9,167.10 8,445.87 7,624.42
exceptional and
extraordinary items
and tax
Exceptional items 0.00 0.00 0.00 0.00 0.00
Profit before 8,359.48 5,263.69 9,167.10 8,445.87 7,624.42
extraordinary items &
tax
Extraordinary items 0.00 0.00 0.00 0.00 0.00
Profit before tax(VII- 8,359.48 55,263.69 9,167.10 8,445.87 7,624.42
VIII)
Tax Expenses
Current Tax 2,464.74 321.71 2,857.89 2,525.38 2,098.03
Tax for earlier year 0.42 (0.47) 12.11 (0.18) 10.18
Deferred tax liabilities 50.21 (93.65) 113.10 (83.73) 54.37

59
Profit for the year from 5,844.11 2,236.10 6,184.00 6,004.40 5,461.84
continuing
operations(IX-X)
Earning per equity
shares of Rs. 10 each
1. Basic (Rs.) 22.14 8.47 46.85 45.49 41.38
2. Diluted(Rs.) 22.14 8.47 46.85 45.49 41.38

60