A

Minor Project
On

FINANCIAL STATEMENT ANALYSIS OF RELIANCE

INDUSTRIES LIMITED

Submitted To:

For The Partial Fulfilment For The Award

Of
Bachelor Of Business Administration [BBA] (Semester – 4 2024)

Under The Guidance and Supervision Of:

DR. Swagatika Panda

Submitted By
A. Abhishek Reddy
BBA Class Of 2022-2025
Enrollment Number: A30606422210
AMITY GLOBAL BUSINESS SCHOOOL,
HYDERABAD
1
 Declaration

A study on financial statements analysis of Reliance Industries Limited

I declare that the work presented for assessment in this term paper is my own, that it has not previously been
presented for another assessment and that my debts for (words, data, arguments and ideas) have been
appropriately acknowledged.

That the work conforms to the guidelines for presentation and style set out in the relevant documentation.

Student Name and Signature: A. Abhishek Reddy

Date:
Hyderabad

2
 Faculty Guide Certificate

This is to certify that Mr. A. Abhishek Reddy student of semester 2 class of BBA 2022-2025 has completed
the term paper titled “Customer satisfaction of Dell” is a bonafide work and has worked under the guidance
sincerely for the partial fulfilment of Bachelor of Business Administration for the year 2022-2025 to the best
of my knowledge and wish him success for the future endeavours.

Name and Signature of Faculty: DR. Swagatika Panda

Date:
Place: Hyderabad

3
 Acknowledgements

My heartfelt sincere thanks to DR. P. Prasada Rao, Director General, Amity Global Business School,
Hyderabad for giving me this opportunity for doing my project in Financial Statement Analysis of Reliance
Industries Limited.
My sincere and grateful thanks to my faculty guide DR. Swagatika Panda for guiding me throughout my
project. My sincere thanks to my family member who stood by motivating me to complete my project
successfully.

4
 Table Of Contents

Sl. Contents Page No

No
1 Preliminary Pages 1 to 6

1.1 Title Page 1

1.2 Declaration 2

1.3 Faculty Guide Approval Page 3

1.4 Acknowledgements 4

1.5 Table of Contents 5

1.6 Abstract 6

2 Chapter–1: Introduction 7 to 13

2.1 Introduction to the topic 8

2.2 Objectives of the Study 9

2.3 Need for the Study 10

2.4 Company Profile 12 to 13

3 Chapter-2: Literature Review 14 to 17

3.1 Literature Review 14 to 16

3.2 Research Methodology 17

4 Chapter-3: Data Analysis and Interpretation 19 to 34

4.1 Meaning of Financial Statements and Financial Analysis 19

4.2 Financial Statements 20 to 26

4.3 Financial Statement Analysis 27 to 30

4.4 SWOT Analysis 31 to 33

4.5 Critical Review 34

5 Chapter-4: Findings and Conclusion 35 to 38

5.1 Summary of Findings 36

5.2 Suggestions 37

5.3 Conclusion 38

6 Chapter-5: References and Bibliography 39 to 40

6.1 Reference/Bibliography 40

5
 Abstract
Among the given topics I have chosen the financial statement analysis of Reliance Industries Limited
multinational company. Reliance Industries is come into existence in 1958.The founder of Reliance Industries
Limited is Dhirubhai Ambani. Privately held conglomerate Reliance Industries Limited is involved in textile,
retail, marketing, telecommunications, petrochemical production and refining, and other industries. It was the
first Indian company with private ownership to make it into the Fortune 500. Mumbai serves as the
headquarters.
Dhirubhai Ambani founded Reliance Commercial Corporation in 1958 as a modest business company dealing
in commodities, particularly polyester yarn and spices. It established its first textile mill in Naroda, Gujarat
state, pursuing a strategy of backward integration and diversification. It was formed as Reliance Textiles and
Engineers, Ltd. in 1966. Even as it grew, the company's operations for the following ten years were
concentrated on the textile sector.
After Dhirubhai passed away in 2002, his sons Anil and Mukesh took over as joint leaders of the Reliance
enterprises. But in 2005, Kokilaben, the brothers' mother, decided to divide Reliance's holdings through a
noncompetition agreement as a result of their power struggle. Mukesh took over Reliance Industries Limited
and its more established divisions, while Anil became the owner of the company's financial services,
telecommunications, and power generation divisions through a demerger. Reliance Industries re-entered the
telecoms industry in 2010 after revising the noncompetition agreement; in 2013, Mukesh and Anil decided to
share telecom networks in their first significant collaborative endeavour since 2005. Following Reliance's
launch of the first nationwide 4G internet network, Jio rose to prominence as one of India's top telecom and
E-Commerce.
In the year 2016 introduction of Reliance Jio Info comm Limited, which upended the Indian telecom industry,
and the subsequent development of the company into digital services and e-commerce via Jio Mart and Jio
Platforms. Reliance Industries Limited is committed to achieving excellence in all of its business sectors while
keeping a close eye on sustainability, technical advancement, and providing value to its stakeholders.
With integrity, innovation, and inclusive growth as guiding principles, Reliance Industries is unwavering in its
quest of greatness as it sets out on its journey. RIL is positioned to influence the future of communities and
industries in India and beyond thanks to a history based on tenacity and vision.
Gujarat, located in western India, is the ancestral home of the Ambani family. Following the long-serving
Gujarat chief minister Narendra Modi's ascension to the prime ministership in May 2014, Mukesh promptly
committed 1.8 trillion rupees in capital investment spread over three years.
Nearly 40% of Reliance Industries is owned by Mukesh, his family, and group entities. The chairman is
among the wealthiest people in India and has an MBA from Stanford University in the United States.
One of the biggest conglomerates in India, Reliance Industries Limited (RIL), is the subject of our study's
financial statement examination. The purpose of our analysis is to shed light on RIL's financial standing,
stability, and prospects going forward. By carefully analyzing RIL's balance sheet, and income statement, we
evaluate important financial metrics like leverage, profitability, revenue growth, profitability, and efficiency
ratios. To put the financial statistics in context, we also look at RIL's strategic initiatives, market positioning,
and industry trends. We hope to provide insightful analysis of these issues to investors, analysts, and other
stakeholders who are interested in learning more about the financial health and future prospects of RIL.

6
CHAPTER-1
INTRODUCTION

7
INTRODUCTION TO THE TOPIC:

Examining a company's performance in light of its industry and economic environment in order to make a
decision or recommendation is known as financial analysis. Financial analysts frequently make decisions and
suggestions about lending money to businesses. Specifically, they advise on whether and how much to invest
in the company's debt or equity instruments. When purchasing debt instruments, an investor is worried about
the company's capacity to cover interest costs and principal repayments. An owner with a residual interest in
a firm who invests in equity securities is worried about the company's capacity to pay dividends and the
possibility that its share price will rise.
Evaluating the company's capacity to create enough cash to meet commitments and seize opportunities, grow
its activities profitably, and achieve a return on capital that is at least equivalent to the capital's cost is a major
focus of financial analysis overall.
The data in a company's financial reports serves as the foundation for fundamental financial analysis. These
financial reports contain audited financial statements, any additional disclosures mandated by regulatory
bodies, and any management commentary that is provided in addition to the audited financial accounts. The
reading's introduction to basic financial statement analysis lays the groundwork for the analyst to better
comprehend additional data gleaned from studies outside of financial reports.
In the United States, generally accepted accounting principles, or GAAP, serve as the foundation for financial
reporting. The balance sheet, income statement, and cash flow statement are the three primary financial
statements that a business must prepare and keep up to date in accordance with certain guidelines. Standards
for financial statement reporting are more stringent for publicly traded corporations. Public businesses are
required to use accrual accounting in accordance with GAAP.
Private businesses can choose to utilize accrual or cash accounting, and they have more latitude in preparing
their financial statements. A number of methods are frequently applied in financial statement analysis. The
three most crucial methods are ratio analysis, vertical analysis, and horizontal analysis. In horizontal analysis,
values of line items over two or more years are analyzed to compare data horizontally. The vertical effects that
line items have on other business components and the overall size of the company are examined via vertical
analysis. Important ratio metrics are used in ratio analysis to compute statistical connections.

8
Objectives of the Study:

The main objectives of financial statements analysis of this particular study are:

1) To get to know about the financial performance of reliance industries limited.

2) To know about the financial performance of reliance industries limited.

3) To evaluate the company ability to generate cash flows in future.

4) To evaluate the company ability for generating future cash flows.

5) To provide better decision making to the investors and creditors.

6)To provide basis for planning, budgeting and forecasting activities.

7)To analyse the financial statements of reliance industries limited based on past
recorded data.

8)To analyse the efficiency of different types of business activities.

9)To compare the performance of a company based on different years.

10)To know about the profitability of a company.

9
Need for the Study:

The trends and connections between financial statement items are found through financial statement analysis.
A company's profitability, liquidity, and solvency must be assessed by both internal management and external
users (such as analysts, creditors, and investors) of the financial statements. Trend analysis, common-size
statements, and ratio analysis are the most often employed techniques in financial statement analysis. These
techniques involve computations and comparisons of the outcomes with past business information, rivals, or
industry norms to ascertain the comparatively robustness and Analysing financial statements is crucial to
meeting stakeholder and other party requests and upholding corporate policies. Adhering to solid accounting
procedures is important, but so is developing the skills and intuition needed to accurately assess financial data.
Financial statement analysis has numerous benefits for organizations. It provides an opportunity for
stakeholders, both internal and external, to make educated investment decisions. Furthermore, financial
statement analysis helps lending institutions make decisions by providing an honest evaluation of a company's
financial situation.
Because senior executives and other management rely on accounting to accurately depict the outcomes of their
decisions, financial statement analysis also helps with corporate governance challenges. Efficacy of the
examined enterprise.
For a number of reasons, understanding financial statement analysis is crucial. First of all, it makes it possible
for stakeholders to evaluate a company's performance and financial health with accuracy, including creditors,
investors, and business partners. People can assess aspects such as profitability, liquidity, solvency, and
efficiency through the examination of financial statements, which offer insights into the efficient operations
and resource management of a company. Second, comparative analyses are made possible by financial
statement analysis. Stakeholders can discern a company's strengths and weaknesses, as well as prospective
opportunities and threats, by evaluating its performance against competitors, industry benchmarks, or its own
historical data. By assisting in strategic decision-making, this comparative research helps companies enhance
their competitive standing and streamline their operations.
Financial statement analysis also helps with planning and forecasting. Through the examination of historical
financial data and patterns, stakeholders are able to forecast a company's future results with confidence.
Strategic planning, resource allocation, and risk management all benefit greatly from this forecasting capacity,
which enables businesses to foresee and successfully adjust to shifting market conditions. Financial statement
analysis is also very important while making investment decisions. Financial statements are used by investors
to judge how appealing investment prospects are, weigh the risks and rewards, and make well-informed
choices. In a similar vein, lenders assess a company's creditworthiness and choose acceptable loan terms using
financial statement analysis, which lowers credit risk and guarantees ethical lending practices.

10
Company Profile:

With corporate interests in the energy, petrochemical, textile, retail, entertainment, materials, and
telecommunication industries, Reliance Industries Ltd. (RIL) is a diversified firm. Exploration, development,
and production of oil and gas are undertaken by the corporation. Additionally, crude oil is refined, petroleum
products are marketed, and petrochemicals are produced. Propylene, gasoline, naphtha, kerosene, alkylate,
sulphur, and petroleum coke are among its refined products. The business sells petrochemical goods, such as
polyesters, elastomers, and aromatics. It runs a variety of retail establishments, including hypermarkets,
footwear, food and grocery specialist stores, and other specialty shops. Along with these digital services, the
company offers broadband internet, security, and telephone. Mumbai, Maharashtra, India, is home to RIL's
corporate office.

11
Reliance Industries Limited

Formerly Reliance commercial corporation (1958 – 1966)

Reliance Textiles and Engineers (1966 – 1973)
Reliance Industries Limited (1973 – present)

Company Type Public

Traded as BSE: 500325
NSE: Reliance
LSE: Rigid
BSE: Sensex constituent
NSE: Nifty 50 Constituent

ISIN INE00002A01018
Industry Conglomerate
Founded 1958 (66 years ago)
Founder Dhirubhai Ambani
Head Quarters Mumbai, Maharastra, India
Areas Served Worldwide
Key People Mukesh Ambani (Chairman and Managing
Director)

Products Petroleum
Natural Gas
Chemicals
Retail
Petrochemicals
Oil Refining
Telecommunications
Media
Entertainment

Number of Employees 389414

Owner Mukesh Ambani
Website www.RIL.com

12
CHAPTER–2:
LITERATURE
REVIEW

13
Literature Review:

1)Hooks, Jill. (2007): I found that, this research is examining the financial performance of three entities of
fifteen-year period. The aim is to determine the influence of corporatization, commercialization and ownership
form on the reported financial performance of three entities.
2)Wei, Sun. (2010): I found that this paper discusses some theories of the system of performance evaluation,
analyses merit and disadvantage of these theories. This paper brings forward the system of performance
evaluation with method of fuzzy matrix.
3)Yunus, N.M., Malik, S.A. (2012): states that the use of financial model is to predict the performance of a
company. The theoretical analysis in the development of model is done using the matrix.
4)Wei, Sun. (2010): I found that this paper discusses some theories of the system of performance evaluation,
analyses merit and disadvantage of these theories. this paper brings forward the system of performance
evaluation with method of fuzzy mathematics. This paper validates the correctness of the system of
performance evaluation with the example.
5)Hajek, P., & Olej, V. (2014): I found that this paper develops a methodology to extract concepts containing
qualitative information from corporate annual reports. The methodology makes it possible to easily compare
the concepts with future financial performance. The results suggest that annual reports differ in terms of the
concepts emphasized reflecting future financial performance.
6)Rungi, M., Stulova, V. (2013): states that the current study investigates the impact of absorptive capacity
on financial performance in the context of corporate acquisitions. A quantitative research was carried out based
on European ICT companies that were subject to acquisition in 2008. The results demonstrate that absorptive
capacity entails a direct effect on financial performance.
7)Basumatary and R. Hussian (2017): I found that, they used the DuPont analysis to evaluate the return on
equity (ROE) of Reliance Industries. The study found that Reliance Industries had a high ROE, indicating that
the company was generating high returns for its shareholders.
8)S. Murugan and S. Sathya (2018): Analysed the financial performance of Reliance Industries using
financial ratios such as liquidity ratios, solvency ratios, profitability ratios, and efficiency ratios. The study
found that Reliance Industries had a strong financial position, with high liquidity and profitability ratios and
efficient use of its assets.
9)P. T. Pawar and S. A. Nalawade (2019): Analysed the financial performance of Reliance Industries using
financial ratios such as liquidity ratios, profitability ratios, and solvency ratios. The study found that Reliance
Industries had a strong financial position with a high return on equity and return on assets, indicating efficient
use of its assets to generate profits.
10)DR. R. Parma and etal (2019): In their study ‘Financial Performance of Selected Indian Food Products
Industry Drug Posting- Reform Period’ analysed the financial performance of selected Indian food products
industry from 1991-1992 to 2015-2016. They observed that maximum growth rate was found in operating
leverage ratio at 1.39% and minimum growth rate was found in financial analysis at turnover ratio at 12%.
They concluded that industry's ability to honour debt payment was satisfactory.

14
11)DR. R. Malini and etal (2019): Made their analysis on ‘The Financial Performance Analysis of Indian
Tobacco Corporation Limited’. The study on financial performance analysis of Indian Tobacco Corporation
limited aims to analyse liquidity, profitability, efficiency and solvency of the firm. The study covers a period
of 5 years (1.4.2013-31.3.2017). They suggested that the firm needs to minimize operating expenses to get
higher net profit and the firm should take steps to utilize maximum of resources and inventory. They concluded
that overall performance of the firm is better.
12) Fajar, (2021): The author made an effort to ascertain the changes in the financial report and the
development of the company’s profitability with the aid of horizontal financial statement analysis and
profitability ratios. The goal of data collection was to leverage secondary data. The operational income ratio
is bigger than the net profit margin, which indicates that the amount of money spent on interest and taxes needs
to be thoroughly scrutinized, according to the analysis of the profitability ratio at PT Indofood Sukses Makmur
Tbk. Due to the company's ability to lower operating costs on sales, the operating ratio drop from 2017 to 2019
resulted in an increase in the operating income ratio, indicating that the company's performance is improving.
The study of the income statement reveals that there has been a rise in cost-effectiveness, which raises sales
levels and raises the value of gross profit as a result of a fall in the cost of products sold.
13) Ruhaya Atan, (2010): The purpose of the author's study was to evaluate the financial performance of
Malaysia's local governments. Fiscal-year balance, short-term liquidity, and long-term solvency are the three
categories that have been used to study financial performance. Using these three categories, the study looked
at the financial performance of city councils, municipal councils, and district councils. 12 LAs from one of
Malaysia's developed states were included in the sample, which was collected from 2000 to 2006 over a seven-
year period. It was found that the LAs had fared poorly in all three categories based on the results, which
demonstrate unfavourable trends for the majority of the metrics used the city councils are discovered to be the
top performers out of everyone. The poor performance seen in these three categories of data clearly
demonstrates that there is some kind of sizable financial system leakage in the LAs. The study's conclusions
might be effectively applied as a roadmap to help the council members, senior staff, and other stakeholders—
including the federal and state governments—assess their effectiveness and direct the organization's financial
performance and sustainability.
14) Singh, (2016): A business's financial statements are its lifeblood. Individuals rely on these financial
statements to understand the state, performance, and capacity of a certain business to effectively sustain past
and future activities. The aforementioned subject clarifies the qualifications of financial statement analysis in
both theoretical and practical manner. In order to more accurately extrapolate and estimate the future of a
business concern, the author makes an attempt to highlight the strategies, methods, and techniques for
analysing financial statements in order to assess a company's position, profitability, future earnings, ability to
pay interest, etc.

15)Sarangi Pradeepta K etal (2014): Undertook a study to forecast the future trend of automobile industry.
The study highlighted the six experiments carried out for 12 years data to estimate values for next 3 years. In
each experiment graph has been plotted using spreadsheet and then linear trend has been drawn and expanded
to calculate future values.
16)Huda Salhe Metten & Manish Roy Tirkey (2014): Have studied the financial analysis of Hindustan
petroleum corporation ltd. The study is based on secondary data. The company has an excellent gross profit
ratio and the trend is rising in with is appreciable indicating efficiency in production cost. The net profit for
the year 2010-11 is excellent & it is 8 times past year indicating reduction in operating reduction in operating
expenses and substantial proportion of net sales available to the shareholders of company.

15
17)Rao (1993): Discussed in his research about ‘Financial appraisal of Indian Automotive Tyre Industry’.
Main objective of study was intended to probe into the financial condition-financial strength and weakness-of
the Indian Tyre industry. He has measured and evaluated the financial performance through inter-company and
inter-sector analysis for 1981-1988. He found that the fixed assets utilization in many of the Tyre undertakings
was not as productive as expected and inventory was managed well. He has considered that the Tyre industry's
overall profit performance was subjected to inconsistency and ineffective. He has suggested some
recommendations to improve financial performance.
18)According to Lesakova (2007): I found that, this study ratios reveals much more about the company and
its operation though it is only the mathematical calculation dividing one number by another number but
cautioned for taking into other related considerations to get the real picture of the concern, otherwise the
inferences may be misleading.
19)According to Hunt: William and Donaldson (1971) “Ratio is the means of expression of relationship of
numbers from financial statement in the form of arithmetic.” The Oxford dictionary defines ratio analysis as
the mathematical relationship between two numbers. It is one of the most common and extensively used tools
of financial analysis, though its role is sometimes misinterpreted. A ratio expresses a mathematical relation
between two quantities (Y.A, Babalola, F.R. Abiola, 2013)
20) According to Lucey (1998): “Ratio analysis is the systematic product from internal and external financial
reports so as to summarize key relationship and results in order to appraise financial performance”. Ratio is a
tool of financial analysis, which can be used as a predictive tool for measuring business performance, show
areas of strengths and weakness of a company and required for management control decisions, investment
decisions and credit control purpose (Elijah Adeyinka Adedeji, 2014).
21) Narware (2004)35: In his study on Working Capital and Profitability an Empirical Analysis, has examined
the interrelationship between profitability and working capital with the assistance of ratio analysis. He has also
employed correlation analysis between selected ratios relating to working capital management and ROI,
multiple regression analysis has been employed to ascertain the impact of working capital and profitability.
His analysis revealed that working capital management and profitability disclosed both negative and positive
association.

16
Research Methodology:

Problem solving can be done systematically with research technique. It is a science to examine the best way
to do research. Its goal is to provide a research work plan.

Data Collection:
Primary Data: There is no primary data in this study.
Secondary Data: secondary data means it is the data that have previously been collected and processed
statistically by another party are referred to as secondary data. For this project, secondary data is collected.

17
CHAPTER-3: DATA
ANALYSIS AND
INTERPRETATION

18
FINANCIAL STATEMENTS

Profit and Loss Account: A profit and loss statement illustrates a company's revenue and expenses for a
specific time period, usually one month or consolidated months across a year. These data indicate whether
your business produced a profit or a loss during that time period.
Profit and loss statements reveal your entire income and expenses, as well as whether your company made
more money than it spent on operating costs. If this is the case, your business has made a profit. The profit and
loss account shows how profitable a business is. It cannot, for example, indicate whether you are running out
of funds as you grow inventory. A balance sheet is required to gain this level of knowledge.

Balance Sheet: A balance sheet is a type of financial statement that shows the assets, liabilities, and
shareholder equity of a business at a certain point in time. The foundation for calculating investor rates of
return and assessing a company's capital structure is its balance sheet.
The balance sheet, to put it briefly, is a financial statement that shows a company's assets and
liabilities as well as the amount of money invested by shareholders. Financial ratio calculations and
fundamental analysis can be performed on balance sheets in conjunction with other significant financial
statements.

FINANCIAL STATEMENT ANALYSIS

Ratio Analysis: Ratio analysis is a mathematical technique that examines financial accounts like the income
statement and balance sheet to provide insight into a company's liquidity, operational effectiveness, and
profitability. A key component of fundamental equity analysis is ratio analysis.

19
FINANCIAL STATEMENTS OF RELIANCE INDUSTRIES LIMITED

Profit and Loss Account

Reliance Industries

Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

12 months 12 months 12 months 12 months 12 months

INCOME

Revenue From Operations [Gross] 565,347.00 466,425.00 278,940.00 366,177.00 401,583.00

Less: Excise/Service Tax/Other Levies 37,032.00 42,722.00 33,273.00 29,224.00 29,967.00

Revenue From Operations [Net] 528,315.00 423,703.00 245,667.00 336,953.00 371,616.00

Total Operating Revenues 528,315.00 423,703.00 245,667.00 336,953.00 371,616.00

Other Income 11,229.00 13,872.00 14,818.00 13,566.00 8,822.00

Total Revenue 539,544.00 437,575.00 260,485.00 350,519.00 380,438.00

EXPENSES

Cost Of Materials Consumed 391,508.00 320,852.00 168,262.00 237,342.00 265,288.00

Purchase Of Stock-In Trade 9,974.00 10,691.00 7,301.00 7,292.00 8,289.00

Operating And Direct Expenses 44,396.00 27,155.00 18,375.00 21,424.00 24,839.00

Changes In Inventories Of FG,WIP

-6,487.00 -7,962.00 610.00 77.00 -3,294.00
And Stock-In Trade

Employee Benefit Expenses 5,691.00 5,426.00 5,024.00 6,067.00 5,834.00

Finance Costs 12,626.00 9,123.00 16,211.00 12,105.00 9,751.00

Depreciation And Amortisation

10,118.00 10,276.00 9,199.00 9,728.00 10,558.00
Expenses

Other Expenses 18,665.00 15,951.00 13,565.00 14,306.00 14,252.00

20
Less: Transfer to / From Investment /
1,080.00 723.00 970.00 2,383.00 0.00
Fixed Assets / Others

Less: Amounts Transfer to Capital

0.00 0.00 0.00 0.00 2,446.00
Accounts

Total Expenses 485,411.00 390,789.00 237,577.00 305,958.00 333,071.00

Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

12 months 12 months 12 months 12 months 12 months

Profit/Loss Before Exceptional,

54,133.00 46,786.00 22,908.00 44,561.00 47,367.00
Extraordinary Items and Tax

Exceptional Items 0.00 0.00 4,304.00 -4,245.00 0.00

Profit/Loss Before Tax 54,133.00 46,786.00 27,212.00 40,316.00 47,367.00

Tax Expenses-Continued Operations

Current Tax 6,186.00 787.00 0.00 7,200.00 9,440.00

Deferred Tax 4,930.00 6,915.00 -4,732.00 2,213.00 2,764.00

Total Tax Expenses 11,116.00 7,702.00 -4,732.00 9,413.00 12,204.00

Profit/Loss After Tax and Before

43,017.00 39,084.00 31,944.00 30,903.00 35,163.00
Extraordinary Items

Profit/Loss from Continuing

43,017.00 39,084.00 31,944.00 30,903.00 35,163.00
Operations

Profit Loss from Discontinuing

1,188.00 0.00 0.00 0.00 0.00
Operations

Net Profit Loss from Discontinuing

1,188.00 0.00 0.00 0.00 0.00
Operations

Profit/Loss for The Period 44,205.00 39,084.00 31,944.00 30,903.00 35,163.00

Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

12 months 12 months 12 months 12 months 12 months

OTHER ADDITIONAL INFORMATION

21
EARNINGS PER SHARE

Basic EPS (Rs.) 65.34 59.24 49.66 48.42 55.48

Diluted EPS (Rs.) 65.34 58.49 48.90 48.72 55.47

VALUE OF IMPORTED AND INDIGENIOUS

RAW MATERIALS

STORES, SPARES AND LOOSE TOOLS

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 5,083.00 4,297.00 3,921.00 3,852.00 3,554.00

Tax On Dividend 0.00 0.00 0.00 732.00 728.00

Equity Dividend Rate (%) 90.00 80.00 70.00 65.00 65.00

Interpretation:
I interpret that, Reliance Industries Limited’s total revenue of a company is 380438 crores in 2019, 350519
crores in 2020, 260485 crores in 2021, 437575 crores in 2022 and 539544 crores in 2023.In the total revenue
of a company. Again, the company’s revenue has been decreased from 2019 to 2020, the total revenue is also
decreased from 2020 to 2021.In 2022 the total revenue of reliance industries limited has increased at a high
rate when compared to the total revenue of 2021.Again, the revenue of a company is increased in 2023 when
compared to 2022.From two years the total revenue of Reliance Industries Limited is increasing at a high
rate which is a positive side for the company.
The total expenses of Reliance Industries Limited in 2019 are 333,071 Crores, 305958 crores in 2020, 237577
crores in 2021, 390789 crores in 2022 and 485411 crores in 2023.From 2019 to 2020 expenses of a company
is decreased, Again, total expenses of a company is decreased in 2021 when compared to 2020.In the year
2022 the total expenses of a company has been increased at a peak rate when compared to 2021.Again, total
expenses of a company has been increased at high rate in 2023 when compared to 2022.
Here, when total expenses of a company decreasing, total revenue of a company is decreasing. When total
expenses of a company increasing, total revenue of a company is also increasing. Both the Revenue and
Expenses are related to each other.
Profit before tax is 47367 crores in 2019, 40316 crores in 2020, 27212 crores in 2021, 46786 crores in 2022
and 54133 crores in 2023. Profit before tax is decreased from 2019 to 2020, Again profit before tax has
decreased from 2020 to 2021.In the year 2022 the profit/loss before tax is increased at a high rate when
compared to 2020. Again, in the year 2023 the profit before tax of a company has increased at a high rate.
At last, the profit of the periods are 35163 crores in 2019, 30903 crores in 2020, 31944 crores in 2021, 39084
crores in 2022 and 44205 crores in 2023.The net profit of a company had decreased from 2019 to 2020.Again
the net profit of a company had decreased from 2020 to 2021.In the year 2022 the net profit of a company is
increased at a high rate. Again, In the year 2023 the net profit of a company is increased at a high rate.
Overall, the profitability of a company is good.

22
Balance Sheet

Reliance Industries

Balance Sheet ------------------- in Rs. Cr. -------------------

Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

12 months 12 months 12 months 12 months 12 months

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 6,766.00 6,765.00 6,445.00 6,339.00 6,339.00

Total Share Capital 6,766.00 6,765.00 6,445.00 6,339.00 6,339.00

Reserves and Surplus 472,328.00 464,762.00 468,038.00 384,875.00 398,983.00

Total Reserves and Surplus 472,328.00 464,762.00 468,038.00 384,875.00 398,983.00

Total Shareholder Funds 479,094.00 471,527.00 474,483.00 391,214.00 405,322.00

Equity Share Application Money 0.00 0.00 0.00 1.00 0.00

NON-CURRENT LIABILITIES

Long Term Borrowings 135,561.00 167,231.00 160,598.00 194,402.00 118,098.00

Deferred Tax Liabilities [Net] 33,968.00 30,832.00 30,788.00 50,556.00 47,317.00

Other Long-Term Liabilities 3,370.00 6,504.00 4,518.00 3,434.00 504.00

Long Term Provisions 1,296.00 1,598.00 1,499.00 1,410.00 2,483.00

Total Non-Current Liabilities 174,195.00 206,165.00 197,403.00 249,802.00 168,402.00

CURRENT LIABILITIES

Short Term Borrowings 80,262.00 27,332.00 33,152.00 59,899.00 39,097.00

Trade Payables 110,722.00 134,005.00 86,999.00 71,048.00 88,241.00

Other Current Liabilities 45,366.00 38,749.00 80,735.00 198,662.00 73,900.00

Short Term Provisions 926.00 896.00 901.00 1,073.00 783.00

Total Current Liabilities 237,276.00 200,982.00 201,787.00 330,682.00 202,021.00

23
Total Capital and Liabilities 890,565.00 878,674.00 873,673.00 971,699.00 775,745.00

ASSETS

NON-CURRENT ASSETS

Tangible Assets 232,238.00 223,824.00 292,092.00 297,854.00 194,895.00

Intangible Assets 12,926.00 15,802.00 14,741.00 8,624.00 8,293.00

Capital Work-In-Progress 30,958.00 19,267.00 20,765.00 15,638.00 105,155.00

Intangible Assets Under

17,957.00 15,395.00 12,070.00 12,327.00 6,402.00
Development

Fixed Assets 294,079.00 274,288.00 339,668.00 334,443.00 314,745.00

Non-Current Investments 303,558.00 330,493.00 252,620.00 421,793.00 272,043.00

Long Term Loans and Advances 22,448.00 41,951.00 65,698.00 44,348.00 31,806.00

Other Non-Current Assets 4,548.00 9,544.00 4,968.00 4,461.00 4,287.00

Total Non-Current Assets 624,633.00 656,276.00 662,954.00 805,045.00 622,881.00

CURRENT ASSETS

Current Investments 86,074.00 78,304.00 94,665.00 70,030.00 59,640.00

Inventories 48,926.00 45,923.00 37,437.00 38,802.00 44,144.00

Trade Receivables 16,898.00 14,394.00 4,159.00 7,483.00 12,110.00

Cash And Cash Equivalents 56,811.00 21,714.00 5,573.00 8,485.00 3,768.00

Short Term Loans and Advances 595.00 161.00 993.00 15,028.00 4,876.00

Other Current Assets 56,628.00 61,902.00 67,892.00 26,826.00 28,326.00

Total Current Assets 265,932.00 222,398.00 210,719.00 166,654.00 152,864.00

Total Assets 890,565.00 878,674.00 873,673.00 971,699.00 775,745.00

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS

Contingent Liabilities 27,421.00 30,426.00 25,921.00 45,924.00 111,869.00

CIF VALUE OF IMPORTS

EXPENDITURE IN FOREIGN EXCHANGE

Expenditure In Foreign Currency 413,231.00 321,119.00 134,436.00 260,280.00 307,558.00

24
REMITTANCES IN FOREIGN CURRENCIES
FOR DIVIDENDS

Dividend Remittance In Foreign

- - - - -
Currency

EARNINGS IN FOREIGN EXCHANGE

FOB Value Of Goods - - - - -

Other Earnings 576,842.00 245,752.00 179,929.00 284,196.00 214,337.00

BONUS DETAILS

Bonus Equity Share Capital 5,188.89 5,188.89 5,188.89 5,188.89 5,188.89

NON-CURRENT INVESTMENTS

Non-Current Investments Quoted

2,934.00 62,401.00 21,240.00 27,475.00 12,937.00
Market Value

Non-Current Investments Unquoted

303,180.00 273,377.00 235,348.00 394,521.00 259,314.00
Book Value

CURRENT INVESTMENTS

Current Investments Quoted Market

65,984.00 21,471.00 36,303.00 31,814.00 24,017.00
Value

Current Investments Unquoted Book

20,090.00 56,833.00 58,362.00 38,216.00 35,623.00
Value

Interpretation:

I interpret that, Total shareholder funds of Reliance Industries Limited are 405322 crores in 2019, 319214
crores in 2020, 474483 crores in 2021, 471527 crores in 2022 and 479094 crores in 2023.The shareholder
funds of Reliance Industries Limited is decreased from 2019 to 2020.In the year 2021 the shareholder funds
of reliance industries have been increased at a high rate. In the year 2022 the shareholder funds of reliance
industries limited have been decreased when compared to 2021. But, in the year 2023 the shareholder funds
of a company have been increased at a high rate when compared 2022. Company is trying to increase their
shareholder funds.
Total non-current liabilities of reliance industries limited are 168402 crores in 2019, 249802 crores in 2020,
197403 crores in 2021, 206165 crores in 2022, 174195 crores in 2023. The non-current liabilities of a Reliance
Industries Limited is increased from 2019 to 2020.In the year 2020 the non-current liabilities of Reliance
Industries Limited has been decreased from 2020 to 2021. In the year 2022 non-current liabilities of reliance
industries limited has been increased at a high rate. In the year 2023 the non-current liabilities of a company
are decreased when compared to 2022. It is beneficial for the company, because non-current liabilities of a
company are getting decreased.
25
Total current liabilities of reliance industries are 202021 crores in 2019, 330682 crores in 2020, 201787 crores
in 2021, 200982 crores in 2022 and 237276 crores in 2023. The current liabilities of Reliance Industries
Limited is increased from 2019 to 2020.In the year 2021 the current liabilities of reliance industries limited
has been decreased when compared to 2020. Again, current liabilities of reliance industries have been
decreased in the year 2022 when compared to 2021. In the year 2023 the current liabilities of a company had
increased at a high rate.
Total Capital and Liabilities of Reliance Industries Limited are 775745 crores in 2019, 971699 crores in 2020,
873673 crores in 2021, 878674 crores in 2022 and 890565 crores in 2023. Total capital and liabilities of
Reliance Industries Limited is increased from 2019 to 2020. In the year 2021 the total capital and liabilities of
a company have been decreased when compared to 2020. In the year 2022 the total capital and liabilities of a
company have been increased at a high rate when compared to 2021. In the year 2023 the total capital and
liabilities of a company have been increased at a high rate when compared to 2022 financial year.
The total non-current assets of reliance industries limited are 622881 crores in 2019, 805045 crores in 2020,
662954 crores in 2021, 656276 crores in 2022 and 624633 crores in 2023. The total non-current assets of a
company have been increased from 2019 to 2020. In the year 2021 the non-current assets of Reliance Industries
Limited have been decreased when compared to 2020. Again, in the year 2022 the non-current assets of a
company have been decreased when compared to 2021. Again, in the year 2023 the non-current assets of a
company have been decreased when compared to 2022.Here, non-current assets of Reliance Industries Limited
is getting decreased from 2021.
The total current assets of Reliance Industries Limited are 152864 crores in 2019, 166654 crores in 2020,
210719 crores in 2021, 222398 crores in 2022 and 265932 crores in 2023. The total current assets of Reliance
Industries Limited is getting increased from 2019,2020,2021,2022 and 2023.This is very much beneficial to
the Reliance Industries Limited.
The Total Assets of Reliance Industries Limited are 775745 crores in 2019, 971699 crores in 2020, 873673
crores in 2021, 878674 crores in 2022, 890565 crores in 2023. The total assets of Reliance Industries Limited
is increased from 2019 to 2020.In the year 2021 the total assets of Reliance Industries Limited is decreased
when compared to 2020. In the year 2022 the total assets of a company have been increased at a high rate
when compared to 2021. Again, the total assets of a company have been increased at high rate when compared
to 2022.

Overall, the financial Position of a company is very good.

26
FINANCIAL STATEMENT ANALYSIS OF RELIANCE INDUSTRIES LIMITED

Ratio Analysis

Reliance Industries

Key Financial Ratios ------------------- in Rs. Cr. -------------------

Mar
Mar '22 Mar '21 Mar '20 Mar '19
'23

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 9.00 8.00 7.00 6.50 6.50

Operating Profit Per Share (Rs) 97.03 77.32 49.54 83.33 92.85

Net Operating Profit Per Share (Rs) 780.84 626.22 363.30 531.53 586.27

Free Reserves Per Share (Rs) -- -- -- -- --

Bonus in Equity Capital 76.69 76.70 80.51 81.85 81.85

Profitability Ratios

Operating Profit Margin(%) 12.42 12.34 13.63 15.67 15.83

Profit Before Interest And Tax

10.29 9.60 9.32 12.29 12.69
Margin(%)

Gross Profit Margin(%) 10.51 9.92 9.89 12.79 12.99

Cash Profit Margin(%) 9.84 11.28 14.14 12.80 12.01

Adjusted Cash Margin(%) 9.84 11.28 14.14 12.80 12.01

Net Profit Margin(%) 8.36 9.22 13.00 9.17 9.46

Adjusted Net Profit Margin(%) 8.19 8.93 12.26 8.81 9.24

Return On Capital Employed(%) 9.60 8.39 5.85 8.77 10.15

Return On Net Worth(%) 9.22 8.28 6.73 7.89 8.67

27
Adjusted Return on Net Worth(%) 8.97 8.28 5.82 8.98 8.67

Return on Assets Excluding

708.09 696.91 701.68 617.13 639.44
Revaluations

Return on Assets Including

708.09 696.91 701.68 617.13 639.44
Revaluations

Return on Long Term Funds(%) 10.86 8.75 6.15 9.67 10.91

Liquidity And Solvency Ratios

Current Ratio 0.58 0.73 0.77 0.36 0.48

Quick Ratio 0.81 0.70 0.73 0.33 0.40

Debt Equity Ratio 0.45 0.41 0.41 0.65 0.39

Long Term Debt Equity Ratio 0.28 0.35 0.34 0.50 0.29

Debt Coverage Ratios

Interest Coverage Ratio 5.29 6.13 2.41 4.68 5.86

Total Debt to Owners Fund 0.45 0.41 0.41 0.65 0.39

Financial Charges Coverage Ratio 6.09 7.25 2.98 5.48 6.94

Financial Charges Coverage Ratio

5.30 6.41 3.54 4.36 5.69
Post Tax

Management Efficiency Ratios

Inventory Turnover Ratio 11.56 10.16 7.45 9.44 9.10

Debtors Turnover Ratio 33.77 45.67 42.20 34.40 32.93

Investments Turnover Ratio 0.76 0.64 0.37 0.52 0.66

Fixed Assets Turnover Ratio 1.41 1.18 0.58 0.79 1.18

Total Assets Turnover Ratio 0.77 0.65 0.38 0.53 0.67

Asset Turnover Ratio 0.78 0.64 0.37 0.56 0.76

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --

Number of Days in Working Capital -11.02 -49.60 -90.30 -174.91 -67.96

Profit & Loss Account Ratios

Material Cost Composition 77.35 79.93 73.51 74.14 75.32

28
Imported Composition of Raw
-- -- -- -- --
Materials Consumed

Selling Distribution Cost Composition -- -- -- -- --

Expenses as Composition of Total

109.18 58.00 73.24 84.34 57.67
Sales

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 11.49 10.99 12.27 12.46 10.10

Dividend Payout Ratio Cash Profit 9.35 8.70 9.53 9.48 7.77

Earning Retention Ratio 88.19 89.01 85.82 89.05 89.90

Cash Earning Retention Ratio 90.44 91.30 89.36 91.42 92.23

Adjusted Cash Flow Times 4.06 3.94 5.26 5.67 3.44

Interpretation:
I interpret that, In Investment Valuation Ratios, the face value of a company is 10 from 2019, 2020, 2021, 2022
and 2023. Dividend Per Share is 6.50 for both 2019 and 2020 years, then dividend per share is increased to 7
in 2021, Then dividend per share is increased to 8 in 2022, then dividend per share is increased to 8 in 2023.
Operating Profit Per Share is 92.85 in 2019, then operating profit per share is decreased to 83.33 in 2020, then
operating profit share is decreased to 49.54 in 2021, then operating profit per share is increased to 77.32 in
2022, then operating profit per share is increased to 97.03 in 2023. Net Operating Profit Per Share is 586.27
in 2019, then net operating profit per share is decreased to 531.53, then net operating profit per share is
decreased to 363.33 in 2021, then net operating profit per share is increased to 626.22 in 2022, then net
operating profit per share is increased to 780.84. Bonus in Equity Capital is 81.85 for both 2019 and 2020,
then bonus in equity capital is decreased to 80.51 in 2021, then bonus in equity capital is decreased to 76.70
in 2022, then bonus to equity capital is decreased 76.69 in 2023.
In Profitability Ratios, Operating profit margin (percent) is 15.83 in 2019, then it is decreased to 15.67 in 2020,
then it is decreased to 13.63 in 2021, then it is decreased to 12.34 in 2022, then it is increased to 12.42 in 2023.
Gross Profit Before Margin (percent) is 12.99 in 2019, then it is decreased to 12.79 in 2020, then it is decreased
to 9.89 in 2021, then it is increased to 9.92 in 2022, then it is increased to 10.51 in 2023. Cash Profit Margin
(percent) is 12.01 in 2019, then it is increased to12.80 in 2020, then it is decreased to 11.28 in 2022, then it is
decreased to 9.84 in 2023. Adjusted Cash Margin (percent) is also same like Profit Margin (percent) Ratios.
Net Profit Margin (percent) is 9.46 in 2019, then it is decreased to 9.17 in 2020, then it is increased to 13 in
2021, then it is decreased to 9.22 in 2022, then it is decreased to 8.36 in 2023. Adjusted Net Profit Margin
(percent) is 9.24 in 2019, then it is decreased to 8.81 in 2020, then it is increased to 12.26 in 2021, then it is
decreased to 8.93 in 2022, then it is decreased to 8.19 in 2023. Return on Capital Employed (percent) is 10.15
in 2019, then it is decreased to 8.77 in 2020, then it is decreased to 5.85 in 2021, then it is increased to 8.39 in
2022, then it is increased to 9.60 in 2023. Return on Net Worth (percent) is 8.67 in 2019, then it is decreased
to 7.89 in 2020, then it is decreased to 6.73 in 2021, then it is increased to 8.28 in 2022, then it is increased to
9.22 in 2023. Adjusted Return on Net Worth (percent) is 8.67 in 2019, then it is decreased to 7.89 in 2020,
then it is decreased to 6.73 in 2021, then it increased to 8.28 in 2022, then it is increased to 8.97 in 2023.
Return on Assets Excluding Revaluations is 639.44 in 2019, then it is decreased to 617.13 in 2020, then it is
29
increased to 701.68 in 2021, then it is decreased to 696.91 in 2022, then it is increased to 708.09 in 2023.
Return on Assets Including Revaluations are also same like Return on Assets Excluding Revaluations ratios.
Return on Long Term Funds (percent) is 10.91 in 2019, then it is decreased to 9.67 in 2020, then it is decreased
to 6.15 in 2021, then it is increased to 8.75 in 2022, then it is increased to 10.86 in 2023.
In Liquidity and Solvency Ratios, Current Ratio is 0.48 in 2019, then it is decreased to 0.36 2020, then it is
increased to 0.77 in 2021, then it is decreased to 0.73, then it is decreased to 0.58. Quick Ratio is 0.40 in 2019,
then it is decreased to 0.33 in 2020, then it is increased to 0.73 in 2021, then it is decreased to 0.70 in 2022,
then it is increased to 0.81 in 2023. Debt Equity Ratio is 0.39 in 2019, then it is increased to 0.65 in 2020, then
it is decreased to 0.41 in both 2021 and 2022, then it is increased to 0.45 in 2023. Long Term Debt Equity
Ratio is 0.29 in 2019, then it is increased to 0.50 in 2020, then it is decreased to 0.34 in 2021, then it is increased
to 0.35 in 2022, then it is decreased to 0.28 in 2023.
In Debt Coverage Ratios, Interest Coverage Ratio is 5.86 in 2019, the it is decreased to 4.68 2020, then it is
decreased to 2.41 in 2021, then it is increased to 6.13 in 2022, then it is increased to 0.45 in 2023.Total Debt
to Owners Fund is 0.39 in 2019, then it is increased to 0.65 in 2020, then it is decreased to 0.41 in both 2021
and 2022, then it is increased to 0.45 in 2023. Financial Charges Coverage Ratio is 6.94 in 2019, then it is
decreased to 5.48 in 2020, then it is decreased to 2.98 in 2021, then it is increased to 7.25 in 2022, then it is
decreased to 6.09. Financial Charges Coverage After Tax is 5.69 in 2019, then it is decreased to 4.36 in 2020,
then it is decreased to 3.54 in 2021, then it is increased to 6.41 in 2022, then it is decreased to 5.30 in 2023.
In Management Efficiency Ratios, Inventory Turnover Ratio is 9.10 in 2019, then it is increased to 9.44 in
2020, the it is decreased to 7.45 in 2021, then it is increased to 10.16 in 2022, then it is increased to 11.56 in
2023. Debtors Turnover Ratio is 32.93 in 2019, then it is increased to 34.40 in 2020, then it is increased to
42.20 in 2021, then it is increased to 45.67 in 2022, then it is decreased to 33.77 in 2023. Investments Turnover
Ratio is 0.66 in 2019, then it is decreased to 0.52 in 2020, then it is decreased to 0.37 in 2021, then it is
increased to 0.64 in 2022, then it is increased to 0.76 in 2023. Fixed Assets Turnover Ratio is 1.18 in 2019,
then it is decreased to 0.79 2020, then it is decreased to 0.58 in 2021, then it is increased to 1.18 in 2022, then
it is increased to 1.41 in 2023. Total Assets Turnover Ratio is 0.67 in 2019, then it is decreased to 0.53 in 2020,
then it is decreased to 0.38 in 2021, then it is increased to 0.65 in 2022, then it is increased to 0.77 in 2023.
Asset Turnover Ratio is 0.76 in 2019, then it is decreased to 0.56 in 2020, then it is decreased to 0.37 in 2021,
then it is increased to 0.64 in 2022, then it is increased to 0.78 in 2023. Number of Days in Working Capital is
-67.96 in 2019, then it is increased to -174.91 in 2020, then it is increased to -90.30 in 2021, the it is decreased
to -49.60 in 2022, then it is decreased to -11.02 in 2023.
In Profit and Loss Account Ratios, Material Cost Composition is 75.32 in 2019, then it is decreased to 74.14
in 2020, then it is decreased to 73.51 in 2021, then it is increased to 79.93 in 2022, then it is decreased to 77.35
in 2023. Expenses as Composition of Total Sales is 57.67 in 2019, then it is increased to 84.34 in 2020, then
it is decreased to 73.24 in 2021, then it is decreased to 58 in 2022, then it is increased to 109.18 in 2023.
In Cash Flow Indicator Ratios, Dividend Payout Ratio Net Profit is 10.10 in 2019, then it is increased to 12.46
in 2020, then it is decreased to 12.27 in 2021, then it is decreased to 10.99 2022, then it is increased to 11.49
in 2023. Dividend Payout Ratio Cash Profit is 7.77 in 2019, then it is increased to 9.48 in 2020, then it is
increased to 9.53 in 2021, then it is decreased to 8.70 in 2022, then it is increased to 9.35 in 2023. Earning
Retention Ratio is 89.90 in 2019, then it is decreased to 89.05 in 2020, then it is decreased to 85.52 in 2021,
then it is increased to 89.01 in 2022, then it is decreased to 88.19 in 2023. Cash Earning Retention Ratio is
92.23 in 2019, then it is decreased to 91.42 in 2020, then it is decreased to 89.36 in 2021, then it is increased
to 91.30 in 2022, then it is decreased to 90.44 in 2023. Adjusted Cash Flow Times is 3.44 in 2019, then it is
increased to 5.67 in 2020, then it is decreased to 5.26 in 2021, then it is decreased to 3.94 in 2022, then it is
increased to 4.06 in 2023.

30
SWOT Analysis:

31
Strengths:

1)Leader in Market: In terms of earnings and sales, Reliance Industries is the biggest publicly traded
corporation in India. It is included in the list of the top 100 firms worldwide. Still, it accounts for about 7% of
India's overall merchandise exports. It gives the business a solid lead position in the Indian market.
2)Recognition of Brand: In the Indian market and globally, Reliance Industries is a well-known brand.
Reliance is one of the very few Indian corporations that Forbes has highlighted. Actually, the business has
received numerous honour and commendations from the following international organizations:
Top 100 Companies in the ICIS ranking by the American Chemistry Council
The National Golden Peacock Award
Boston-based Consulting Firm
Magazines for Industry Week
Award for National Energy Conservation
3)Diversification of Business: Reliance Industries has expanded into a number of industries, including media,
retail, energy, telecom, and petroleum. It indicates that the corporation has diversified its business and revenue
streams into other areas rather than depending just on one.
4)Marketing and Advertisement: Reliance initiates a variety of marketing and advertising campaigns to
bolster its standing in the market and increase brand recall. To draw in clients, the business uses billboards,
internet advertisements, print ads, TV, and other media channels.
5)Corporate Social Responsibility: Without a question, Reliance Industries has always approached growth
and advancement from a holistic perspective. However, Reliance is a very socially conscious business, and
some of its CSR initiatives include the following:

Development that is sustainable

Environment and infrastructure in the community
Protection of the environment comes from
Learning and developing one's abilities
Local Medical Services

32
Weaknesses:
1)Less Market Share: In recent years, there has been significant development in the oil and gas, energy,
telecom, and mass media sectors. As a matter of fact, there is fierce competition in the industry these days.
High levels of competition make it challenging for the business to hold onto its market share.
2)Disputes: Reliance Industries has been involved in various types of controversies and conflicts. Some of
them cost the company billions of dollars, and others have earned notoriety in the media and negative brand
perception. Some of the controversies are as follows;

Stock manipulation and penalty

Possession and future retail deal
Petition again Reliance Jio
Krishna Godavari Basin Gas issue
Airplane grounding of RIL
Criminal investigation in 2005

Opportunities:
1)Alliances and Partnerships: Reliance Industries have to think about forming alliances and collaborations
with the top media, retail, and oil and gas companies worldwide. The company's reputation, business portfolio,
and market share would all grow as a result.
2)Growth of Automative Industry: The Indian automobile industry has grown exponentially over the past
few years. Tata Motors is manufacturing the whole vehicle locally from start to finish. It presents a lot of
opportunities either to join hands with Tata Motors or work on joint venture projects. It would help the
company to amplify its growth and profitability.
3)Acquiring Competitors: Reliance Industries should take into consideration purchasing the little or weak
competitors across a range of industries in order to prevent competition. It would assist the business in
eliminating the competitors and taking the lead in the industry.
4)Growth of Petroleum: Oil prices have increased significantly across the world after the pandemic crisis. It
presents a lot of growth opportunities in the petroleum sector. Since Reliance is already operating its business
in the petroleum sector; now the company should amplify its efforts.

Threats:
1)Recession: The worldwide economic slump has been brought on by low purchasing power, inflation, and
the unemployment rate. As a result, all of the firms' sales have drastically decreased.
2)Rules and Regulations against Oil: Government representatives, environmentalist groups, and NGOs all
condemn the use of petroleum products. It is detrimental to the company's expansion, and in order to stay
competitive, it needs to move toward renewable energy sources.

33
Critical Review:

The biggest conglomerate in India, Reliance Industries Limited (RIL), has a broad portfolio spanning several
industries, including petrochemicals, refining, digital services, retail, telecommunications, and oil and gas
exploration. Its diverse business approach, which gives it stability and resilience in the face of market swings,
is one of its main advantages. RIL's market supremacy and innovative prowess are shown by its rapid
development into new areas like telecommunications and digital services through Jio Platforms, in addition to
its grip in critical industries like petrochemicals and refining.
Reliance industries limited has hurdles despite its achievements. Operations are always at danger from legal
and regulatory obstacles. Its commercial operations could be disrupted by ongoing conflicts over spectrum
usage fees, antitrust investigations, and environmental concerns about its petrochemical and refinery
complexes. Furthermore, RIL has a large debt load that is mostly the result of its ambitious capital-intensive
projects and acquisitions, which may limit its ability to grow and maintain its financial flexibility in the future.
Due to its excessive reliance on established industries like gas and oil, Reliance industries limited is also
vulnerable to the volatility of commodities markets and geopolitical unpredictability. Although its foray into
digital services and telecommunications has revolutionized the industry, growing competition in these areas
threatens its market share and profit margins. Government laws and regulations also have a big impact on
Reliance industries limited operations, especially in industries like energy and telecommunications, which
makes its business plan even more complicated.
Reliance industries limited, however, also benefits from a wealth of growth and expansion prospects. There is
a lot of upside potential in its venture into digital transformation with Jio Platforms, as there are chances to
profit from India's fast expanding internet user base and changing consumer tastes. In order to diversify its
revenue sources and lessen its reliance on the home market, Reliance industries limited can also look into
opportunities for overseas expansion, particularly in emerging economies. Reliance industries limited may be
positioned as a leader in environmental stewardship and future-proof its company against changing customer
tastes and governmental constraints by investing in renewable energy and sustainability programs.
Reliance industries limited confronts a variety of risks in spite of its advantages and strengths. Risks to its
operations and investment plans include regulatory changes, economic downturns, and geopolitical tensions.
Its current business models may be challenged by technological changes, necessitating large research and
development expenditures to stay ahead of the curve. Furthermore, Reliance industries limited license to
operate may be impacted by environmental and social issues, such as worries about pollution, resource
depletion, and labour rights.
In summary, even though Reliance Industries Limited has made a name for itself in the Indian corporate world,
it still has a long way to go before it can maintain its current level of success and spur further expansion. RIL
can set itself up for long-term success in the competitive global market by embracing innovation and
sustainability, controlling its debt load, tackling legal and regulatory issues, and diversifying its sources of
income.

34
CHAPTER-4:
FINDINGS AND
CONCLUSION

35
Findings:

1. Despite fluctuations throughout the years, the company has been making money from its activities.

2. The business has been increasing the amount of money it invests in its operations through capital
expenditures, acquisitions, and investments in other businesses.

3. The company has raised more money through finance operations in the past few years. These
activities may include debt financing, equity financing, or other financing agreements.

4. The net cash flow is showing a declining trend.

5. The business took out more loans to fund its operations during the first several years.

6. The assets of the company have grown over time.

7. There was an increasing tendency in the company's profitability.

8. The company has made significant expenditures in expansion opportunities, yielding noteworthy
profits.

36
My Suggestions:

1. As the main source of funding for any firm, the company ought to concentrate on increasing its cash flow
from operating activities. This can be accomplished through lowering operational costs, efficiently managing
working capital, and raising profitability.

2. To make sure it has enough cash on hand to pay its debts and avoid taking on too much, the company should
balance its financing activities with its investments.

3. The business should keep an eye on outside variables that can affect its cash flow and take the necessary
action to efficiently manage it.

4. The company's operating, investment, and financing needs should be satisfied by a steady stream of positive
cash flow. It can accomplish this through lowering debt, increasing profitability, and skilfully managing
working capital.

5. The business has been making large investments, which have grown significantly over time. It ought to keep
making investments in sectors that complement its long-term plan and have significant development potential.

6. The business should keep prioritizing boosting operational performance, cutting expenses, diversifying its
revenue streams, optimizing its tax structure, and evaluating its dividend policy in order

7. In order to bolster its reserves and improve its financial condition, the corporation had to think about holding
onto additional profits.

8. In order to diversify its holdings and expand its investment base, the corporation should keep looking for
new chances to increase the return on its investments.

9. To reduce delays and cost overruns, the business should make sure that its capital projects are finished on
schedule and under budget.

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Conclusion:
The company's expansion in recent years appears to have been driven by heavy investments in fixed assets
and financial assets, based on the financial analysis presented. On the other hand, it has also been accruing
greater debt, mainly from borrowing. This implies that the business should concentrate on maintaining a
balance between its financing activities and investments to make sure it has enough money to pay its debts
and fulfil its obligations. In order to satisfy its operational, investing, and financing needs, the company should
also concentrate on enhancing its cash flow from operating activities and strive to continually create positive
cash flow. This can be accomplished by increasing profitability, efficiently managing working capital, as well
as debt reduction. To increase its reserves and solidify its financial position, the business should also think
about keeping more of its profits. Despite variations in the company's financial ratios throughout time, it has
demonstrated the ability to promptly convert its assets into cash and obtain payments from clients while
making payments supplies with greater slowness.
In conclusion, even though the company's investments have demonstrated growth potential, it still needs to
make sure that its operations are viable and able to produce enough cash flow. The organization can maintain
long-term growth and competitiveness by focusing on operational performance, cost control, and
diversification, and by adopting a balanced approach to finance and investments. Being india’s one of the
largest MNC with all major parameters, reliance industry limited has the capability of throwing the weaker
firms out of competition either by acquiring or taking over them. It is hoped that, the study will generate a
clear picture of the company and will help the management to take effective managerial decisions. Further, it
is hoped that; the study will enlighten the importance of ratio analysis.

Based on financial statement analysis data through cash flow statements and ratio analysis, I conclude that,
the financial position of a company is good.

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CHAPTER-5:
REFERENCES AND
BIBLIOGRAPHY

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References/Bibliography:

1)Money control website.

2)Collected information from company`s original websites.

3)Newspaper Articles and Magazines.

4)Finance Text Books.

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