CONTENT

Sr no. 1 2 3 4 5 6 Particulars Introduction of RIL Company Profile Financial Information of RIL Financial Analysis of RIL Findings & Suggesions Conclusion & Bibliography Page No. 5 7 8 13 20 22

Introduction

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 58 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 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 textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas 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, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail, infotel and special economic zones. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major
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petrochemical products. Major Group Companies are Reliance Industries Limited, including its subsidiaries and Reliance Industrial Infrastructure Limited.

Company profile
Date of Establishment Revenue Market Cap Corporate Address 1966 58006.5 ( USD in Millions ) 2444525.33559075 ( Rs. in Millions ) 3rd Floor Maker Chambers IV,222 Nariman Point, Mumbai-400021, Maharashtra www.ril.com Chairperson - Mukesh D Ambani MD - Mukesh D Ambani Directors - Ashok Misra, Dharam Vir Kapur, Dipak C Jain, Dr Dharam Vir Kapur, Dr Raghunath A Mashelkar, Hardev Singh Kohli, Hital R Meswani, K Sethuraman, Mahesh P Modi, Mansingh L Bhakta, Mukesh D Ambani, Nikhil R Meswani, P M S Prasad, Pawan Kumar Kapil, Prof Ashok Misra, Prof Dipak C Jain, R Ravimohan, Raghunath A Mashelkar, Ramniklal H Ambani, S Venkitaramanan, Vinod M Ambani, Yogendra P Trivedi Refineries The Reliance Group, founded by Dhirubhai H. Ambani , is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of $ 30 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Dhirubhai Ambani founded Reliance as a textile company and le Total Income - Rs. 2515891.1 Million ( year ending Mar 2011) Net Profit - Rs. 202863 Million ( year ending Mar 2011) K Sethuraman ABN Amro Bank, Allahabad Bank , Andhra Bank, Bank of America, Bank of Baroda, Bank of India , Bank of Maharashtra, Calyon Bank, Canara Bank , Central Bank

Management Details

Business Operation Background

Financials

Company Secretary Bankers

of India, Citi Bank, Corporation Bank, Deutsche Bank, HDFC Bank, HSBC Bank, ICICI Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab National Bank, Standard Chartered Bank, State Bank of Hyderabad, State Bank of India, State Bank of Patiala, State Bank of Saurashtra, Syndicate

Financial Information of Reliance Industries Limited

Working capital

Each and every company wants to have sufficient capital in the hand of cop up with the capital blocked in inventories and receivables.

Working capital refers to that part of capital which is not tie up in fixed assets but it is used for the day to day requirements of business it is invested in current assets like cash, stock, bills, receivables and debtors etc.

This type of capital is used to make payments for purchase or raw materials, wages and to meet other expenses till goods are sold and money is collected against it.

Net working capital refers to the difference between current assets and current liabilities. Without adequate working capital that can be no progress in industry.

Components of working capital

There are some important components of working capital which requires attention. Since, working capital is excess of current assets over current liabilities the forecast for working capital requirements can be made only after estimating the among of different continents or working capital in include stock of raw materials, work in progress and goods.

1. Inventories: Inventories are one of the main components of working capital in any industry. There are total three 3 kinds of inventories the company can have as like: a. stock of raw materials b. stock of work in progress c. Stock of finished goods.

2. Sundry debtors: Sundry debtors are also one of the important elements of working capital of the company. Liquidity of the company is depends on how well they manage the time lags of debtors 3. Cash & Bank balance:

The amount of money to be kept as cash in hand or cash as bank can be estimated on the basis of past experience.

4. Sundry creditors:

The lag in payment to suppliers of raw materials, goods etc and likely credit purchase to be made during the period will help in estimating amount of creditors.

As receipts from debtors are to be managed well, payment to creditors is also to be managed well to maintain good liquid position of the company.

BALANCE SHEET ( in Cr.)

Particulars Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 3,273.37 3,273.37 0.00 0.00 142,799.95 5,467.00 151,540.32 10,571.21 56,825.47 67,396.68 218,937.00 Mar '11 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities 221,251.97 78,545.50 142,706.47 12,819.56 33,019.27 29,825.38 17,441.94 604.57 47,871.89 17,320.60 31,162.56 96,355.05 0.00 61,399.87 4,563.48 65,963.35 30,391.70 0.00 218,937.00 41,825.13 215,864.71 62,604.82 153,259.89 12,138.82 19,255.35 26,981.62 11,660.21 362.36 39,004.19 10,517.57 17,073.56 66,595.32 0.00 48,018.65 3,565.43 51,584.08 15,011.24 0.00 199,665.30 25,531.21 149,628.70 49,285.64 100,343.06 69,043.83 20,268.18 14,836.72 4,571.38 500.13 19,908.23 13,375.15 23,014.71 56,298.09 0.00 42,664.81 3,010.90 45,675.71 10,622.38 0.00 200,277.45 36,432.69 104,229.10 42,345.47 61,883.63 23,005.84 20,516.11 14,247.54 6,227.58 217.79 20,692.91 18,441.20 5,609.75 44,743.86 0.00 29,228.54 2,992.62 32,221.16 12,522.70 0.00 117,928.28 37,157.61 3,270.37 3,270.37 0.00 0.00 125,095.97 8,804.27 137,170.61 11,670.50 50,824.19 62,494.69 199,665.30 Mar '10 12 mths 1,573.53 1,573.53 69.25 0.00 112,945.44 11,784.75 126,372.97 10,697.92 63,206.56 73,904.48 200,277.45 Mar '09 12 mths 1,453.39 1,453.39 1,682.40 0.00 77,441.55 871.26 81,448.60 6,600.17 29,879.51 36,479.68 117,928.28 Mar '08 12 mths Mar '11 12 mths Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths

Book Value (Rs)

446.25

392.51

727.66

542.74

Financial Analysis of Reliance Industries Limited

Financial Analysis
By determining the amount of current assets and current liabilities. The assessment of working capital requirements can be made on the basis of current assets for the business and credit facility available for the acquisition of such current assets and current liabilities. Without adequate working capital that can be no progress in industry. Net working capital refers to the difference between current assets and current liabilities. So, working capital can be found out by deducting total current assets from total current liabilities of the company.

Statement of net working capital for last four years

FOR THE YEAR 2008-2009

Particulars
CURRENT ASSETS: Inventories Sundry debtors Cash & Bank balance Total current assets CURRENT LIABILITIES: Current liabilities Total current liabilities

Amount

Amount

98832.14 6227.58 217.79 105277.51

29228.54 29228.54

NET WORKING CAPITAL

76048.97

FOR THE YEAR 2009-2010

Particulars
CURRENT ASSETS: Inventories Sundry debtors Cash & Bank balance Total current assets CURRENT LIABILITIES: Current liabilities Total current liabilities

Amount

Amount

109284.34 4571.38 500.13 114355.85

42664.81 42664.81

NET WORKING CAPITAL

71691.04

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FOR THE YEAR 2010-2011

Particulars
CURRENT ASSETS: Inventories Sundry debtors Cash & Bank balance Total current assets CURRENT LIABILITIES: Current liabilities Total current liabilities

Amount

Amount

153689.01 11660.21 362.36 165711.58

48018.65 48018.65

NET WORKING CAPITAL

117692.93

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FOR THE YEAR 2011-2012

Particulars
CURRENT ASSETS: Inventories Sundry debtors Cash & Bank balance Total current assets CURRENT LIABILITIES: Current liabilities Total current liabilities

Amount

Amount

198076.21 17441.94 604.57 216122.72

61399.87 61399.87

NET WORKING CAPITAL

154722.85

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Net working capital

Year Amount (in Rs.)

2008-2009 2009-2010 2010-2011 2011-2012

76048.97 71691.04 117692.93 154722.85

Analysis

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Average of net working capital requirement of the company is about Rs. 150000. (In cr.) As the requirement of company is net working capital is adequate and it increase and highest in the year 2011-2012 and the lowest net working capital was in the year 2009-2010.

Findings & Suggestions

Findings

As we all are privy about current economic scenario in which each & every industry strive diligently to sustain & survive in this competitive arena. Every industry plays vital & pivotal role in this globe. They have their own contribution in the global economy. As it is rightly said in our linguafranka, Little knowledge is dangerous thing. Therefore we should dwell deep into particular matter to get the knowledge of all nitty-gritty aspects of the industry.

This company is global player in most of the products & it focuses on import as well as export of its products. This company is market leader in Information technology. Customers are regarded as the king of the market. This company also gives considerable consideration to its customers. It adopts customization approach. As we all are privy about global financial crisis but this company has no any kind of adverse impact of this financial fiasco. This company considers human resource to be important assets for bringing about continuous growth & development. This company is very conscious about its quality. They believe that customers must get its products with the best quality and at reasonable price. They also focus on Quality assurance & Quality policy.

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Suggestions

After getting the findings we have clear cut idea about this company as well a sits plans, policies, rules & regulations. To paraphrase Dr. Covey Keep the end in your mind. While taking decisions, one should have to think about the END Because to take the right decision at the right time is not everyones cup of tea.

It is rightly said that Every end has new beginning as well as Every dark cloud has silver lining. Following are some golden nuggets work as recommendations or suggestions: Every single thing depends upon the fundamentals. Thus try to create strong fundamentals for local, glocal & global level. Contemporary era is competitive era but in current situation Competition cum cooperation serves as survival sutra. It is good that company has great achievement in international marketing but company should also give proper consideration to its local market. As far as customers are concerned, there is need to adopt, adapt & adept survival sutra i.e. lose your profit but never lose your customers. Change is only the certain thing in economy. This company is also aware about this matter & thats why it adopt, adapt & adept KEIZEN Philosophy. It is nothing but constant change.

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Conclusion & Bibliography

Conclusion

To summarized the subject of cost working capital and profit planning or management accountancy. I have select subject Working Capital.

In short, I would like to summarize this report of this industrial unit by showing that this unit has achieved a rapid growth and progress in very short time period of time in 10 to 20 years. As their labors and employees have no problem as they get superior facility. This industrial unit does not have trade union. There is harmonious and peaceful relationship between labors, employees and management. The management of this industrial unit is efficient and effective. Thus, this industrial unit has completed 24 glorious year of excellence and growth and welcomed 25th year.

As the requirement of company is net working capital is adequate and it increase and highest in the year 2011-2012 and the lowest net working capital was in the year 2009-2010.

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Bibliography

1. Company Websites : -www.reliancegroup.com -www.RIL.com

2. Any other websites: - www.moneycontrol.com

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