Capital Revenue

Profit
SOLUTION: employed
Objectives 2. 1. Analyse
justified? employed Revenue
CapitalProfit
3.andAnalysisName Segment
To is To 2. 1.
know study the
of performance
whether
as Project
of
to Performance
which
the Refining
contribution
operation of
101,428 257,156 each
of 15,827 Statement
each segment
segment Petrochemicals Specific
of segment
PROJECT Showing
various Analysis)
Segment
of(on
is of
42,934 8,291 94,644 For Reliance
performing Inter-Segment
segments Reliance the
ON Project
andGasOil yearIndustries

of Industries
SEGMENT ended
best
Reliance 56,518 3,181 10,934 Revenue,
in Limited
31
terms March,llustration
Limited Profit
Industries Organized with
of ANALYSIS Retail
Net 2015
with 17,121 and the
5,903 417
Profit Capital help
Limited reference
and of
information
Othersemployed 3
Investment.
Returnon with
to 72,600 8,639
respect 958

Un-allocated given
to
(1) below
Revenue 86,550 1,243
by
using
and ?
TOTALCrore) in
(2) ratios.
365,933 29,917388,494
Profit, WORK PRONEC?

P53
 d) c) b) 2

6. 4.5. 3.
evenue Revenue
March, Financial
1) Period
2)Tools
Revenue e2015.Processing
UsCompare the ) FromSoureeRatios
Common
Revenue
Common
of revenueof of
of Percentage Reliance of of under
anized Formula
of Refining Material
Analysis year
of
Petrochemical of size
Oil revenue size Data endedstudy
and segment tostatement official statement
Retail calculate
Gas March
from website
= = =
percentage operations of 31,
Revenue of
Segment
http://www.ril.com 2015
Revenue
Total
8,49417,121 388,49410,934 388,49494,644 388,494
257,156
and of
segmentthe each wise
X X degree
X x 100
100 100 Revenue
segment
100
-= =
= = 24.36 66.19 x for
4,41 2.82 100
making of
Reliance
d) c) b) a) pie
Degree
diagram.Industries
Degree
anized
Degree of of
Degree
Degree Segment
of
Limited
of Refining
of
Petrochemical wise
Oil with
and Segment revenue
Retail = Total
Gas
= = =
Revenue
Revenue
Revenue
Total
257,156
388,494
38,49417,121 388,49410,934 383,49494,644 of for
the the
x segment year
=15.87
360 X x x =238.29360
360 360
ended 31
= = x
10.13 87.70 360
WORKPROJECT P-54
 Degree Revenue()
Percentage

for
Pie to
chart total Segment
revenue Revenue
Diagram

(%) of
10.13
Others
87.70
15.87
8.01 Common =

257,156
Refining
238.29 size
66.19
representing
chartPie 388,4948,639
Statement
238.29| For
Petrochemicals
=2.22100 X
the
94,644 Showing
year
87.70 24.36
ended
Inter-Segment

and
GasOil 31
Segment-wise
Revenue March,
10,934
10.13 2.82 Comparison
2015

Organized
Retail Degree
17,121 of
OthersOrganized
Retail Petrochemicals Refining Revenue of
GasandOil 15.87 4.41 Others

Others
8,639
8.01 2.22 388,4948,639

=8.01
x360
388,494TOTAL
Crore)in
360 100
WORK PROJECT
P-55
 d) c) b) a)

Use I)
Profit Profit Compare
Common
Profit Profit of
of Profit of PercentageFormula
Profit Organized of Refining the
of
of
Petrochemical
unallocated Oil PROFIT size
of to
Others and segment of statement
Retail calculate
Profit
Gas
=
of
= = = each
= =
percentage of
Profit
segment
Segment
Profit
Total
29,917 1,243 29,917 958 29,917 29,917 3,181 29.9178,291 29,91715,827 of
417
the and of
wise
x x x x X x Reliance
segment degree
100 100 100 100 100
100 Profit
= = = = = =
3.20 10.63 52.90 X for
Industries
Limited
4.16| 1.40 27.71 100
diagranm.
makingpie

e) d) c) b a)

Degree
Degree Degreeof Total
with
Degree
Degree Degree of
of Segment
Degree
Othersof Organized segment
of Refining
of of Profittfhoer
Petrochemical
Oil
unallocated Wise
and
Retail Profit
Gas

= = = year
ended
Profit

29,9178,291 29,91715,827 Profit

Total 31
29,917 1,243 29,917 958 29,917 29,9173,181 of
417 the March,
=38.28
360 x x X
X segment
x x 360
360 11.53
360 = 360
360 2015.
=
==
= = 99.77 190.45
x
14.95 5.02 360
WORKPROJECT P-56
 Degree
Percentage Profit()

for
Pie of
chart Total Segment

Diagram Profit

(%)
38.28
99.77
11.53
14.
5.02
95
Common
size
15,827Refining
190.45
52.90
representing
chartPie
190.45
Statement
Petrochemicals For
8,291
99.77 27.71 the
year
Showing

ended
Oil
Comparison of
3,181 Inter-Segment
and 31
Segment-wise
Profit 38.28 10.63
GasMarch,

Organized 2015
Retail
417
5.02 1.40
Unallocated Others Petrochemicals
Organized
Retail Gas
andOil Refining
Profit
Others
958
11.53 3.20

Unallocated
1,243
14.95 4.16

TOTAL
29,917 Crore)in
360 100
WWORK PmOCT

P67
 f) e) d) c) b) a)
Capital
employed
Capitalof employed employed
Capitalof
CapitalofOrganized employed employed
Capital
CapitalofRefining
segment = of
Percentageof March,
UseCompare
2015.31the III)
Retail
unallocated = employed
Petrochemical = ofConmmon
Gas
and employed= Formula
Others

of Capital Capital size

Oil to
calculate statement
Capital employed
employed
Capital
Total
percentage
employed of
Segment
of
365,93386,550 365,93372,600 365,933
42,934 101,428
365,933 each
365,9335,903 365,93356,518
of
the andsegment
x X x =27.72|100 x
wise
x x segment degree
100 100 100 100
100 Capital
= = = = of
23.65 = 15.45 100 X for
19.84 11.73| Reliance
1.61|
making
employed
e) d) c)] b) a) Industries
pie
) Degree Degree
nallocated=
Degree of diagram.
Organized
Degreeof Refining
Degreeof
Degree
Othersof employed Total
with
Petrochemical
of = Capital =of Limited
0il
Segment
and Degreeof] segment =
Retail
Gas
Wise

Capital Capital
Capital
Total
employedthe of employed

365,93356,518 365,933
42,934 365,933
101,428
365,93386,550 365,93372,600 365,933 5,903 employed
for
55.60
360 x x x segment the
X =71.42360 x x 360 360
360 360 year
= =
= = 42.24 99.78 x
85.15 5.81 360 ended
WORKPROJECT
 Degree
Percentage
employed(%Employed
) Capital

for
alculation IV) pie of
Caleulation chart total Segment

Diagram capital
of
Return 71.42
of 5.81 85.15
Return
on Statement
Common
size

nvestment 101,428
on 55.60 Pie Refining
99.78 27.72
Investment chart
99.78
42.24
of representing Petrochemicals
each For
Showing
42,934Inter-Segment
the
segment
42.24 11.73 year

Segment-wise ended
of andGasOil
Reliance S6,518
31
55.60 15.45 March,
Comparison
Capitalof
Industries Organized
Retail 2015
Capital
5,903
Limited Others PetrochemicalsRefining Employed
Unallocated Organized
Retail 5.81 1.61
Gas
and Oil
employed
for 72,600 Others
the
71.42 19.84
year
ended Unallocated
86,550
31 85.15 23.65
March
Crore) in?
365.933TOTAL
2015.
360 100
WORK aECT

P-59
 Employed
ROICapital Profit
% before
[PBIT/Capital Useof
GraphBar :
interest
Segment the
& Formula
Employed) tax
(PBIT)
to
x calculate
100] Return
15.00%20.00%25.00%
0.00%5.00%10.00%
on
1,01,428 Investment
Returnon
Investment
15,827RefiningStatement
15.60%
15.60%
Refing For
Showing =
19.31% Petrochemicals the interest,
before
Profit
42,934 8,291 year
Inter-Segment
Ol and Gas 19.31% ended
Petrochmials 5.63%
31
Capital

56,518 3,181 l
OiMarch, employed
Comparison
and dividendandtax
7.06%
Organized Retail 5.63% Gas 2015

5,903 Organized of
1.32% 417Retail
7.06% ROI 100-X
Others
144% 72,600
Others
958

1.32%
Jnalocted
86,550 Unallocated
1,243

144%
3,65,933
29,917 TOTAL
Crore)in
8.18%

09-d
 Projection
Future Conclusion
Percentage Percentage
ROI Percentage
Ans. Q.
Q.Which 2.
Ans.segment. Q. (%)
Refining
3.Ans. 1. 2. 1. 4. 3. 2. 1.
With Petrochemical
Organized Refining
Refining(ProfitCapital of of of
ompany'OthersWhich RefiningWhich Refining,
total total total
27.72% Segment
segment segment segment segment
segment Capital Profit
Revenue
Segment' has petrochemical retail
may Employed) (%)
highest share segment Employed (%)
transfer should is gives segment has has
may the of
percentage ROI highesthighest
best highest has (%)
its be be and has
discarded?
capital ? and highest
discarded percentage Oil lowest share share
and 52.9%
shareof Refining
of ROI in in 15.60% 27.72 52.90 66.19
ployed profit gas percentage the profit
because segments with
revenue
of of comparative
statement
Combine
of Petrochemicals
to 52.9% profit 19.31% the
profit, of
Refining it Questions Viva of
provides of ? have Capital company 27.71 24.36
total refining with the 19.31%| 11.73
Company
or potential employedcapital
emicals only profit with andGasOil
segment
1.32% of of employed with52.9% 5.63%
15.45 10.63 2.82
the future of
Company. seems 1.61% 66.19% share
profit growth Organized
segment of Retail
to with11.73%. of
7.06% 1.61 1.40 4.41
of have share. total
because ROI
tothe a profit.
earn
Company bright of Others
of 7.06%.
more highfuture. 1.32%
19.84 3.20 2.22

profit. and use Unallocated

employs of
products.
these 23.65 4.16
1.44%

19.84%
TOTAL

100.00100.00100.00
capital. 8.18%
P-61
 Ans. Q. Ans.lt Q.Ans. Q.4.
6. 5.
(üi) (ii) What ROI = WhatRetum What
) establishes
The
GeographicalDifferent
are Profit is is
area ROI? on the
the Investment.
of
full
Typefactors before a
operation relationship form
areas Employed
Interest,
ofusedCapital
products of
served
of to ROI?
identify
a between
Tax
Companyby like
a and
service
Refining,
reportableDividendsprofit
like
Company earned
passenger
Petrochemicals,
segments? 100 X
and
like the
transport
Northern capital
Oil
and and employed
Railway,
goods Gas

transport. etc. to
Eastern earn
it.
Railway, The
ratio
Western is
computed

Railway
as
under
etc.
:

WORKPROJECT P-62