Ratio Analysis

Submitted To. Prof Lakshmi Chand

Submitted By: Rahul Sebastian
Submitted On: 10/01/2011
 Reliance Industries Balance Sheet (Petro Chemicals)

Mar 06 Mar 07 Mar 08 Mar 09

12 months 12 months 12 months 12 months
Sources Of Funds
Total Share Capital 1393.17 1393.21 1453.39 1573.53
Equiuty Share Capital 1393.17 1393.21 1453.39 1573.53
Share Application Money 0.00 60.14 1682.40 69.25
Preference Share Capital 0.00 0.00 0.00 0.00
Reserves 43760.90 59861.81 77441.55 112945.44
Revaluation Reserves 4650.19 2651.97 871.26 11784.75
Net Worth 49804.26 63967.13 81448.60 126372.97
Secured Loans 7664.90 9569.12 6600.17 10697.92
Unsecured Loans 14200.71 18256.61 29879.51 63206.56
Total Debt 21865.61 27825.73 36479.68 73904.48
Total Liabilities 71669.87 91792.86 117928.28 200277.45
Application Of Funds
Gross Block 84970.13 99532.77 117928.28 200277.45
Less: Accum.Depreciation 29253.38 35872.31 42345.47 49285.64
Net Block 55716.75 63660.46 61883.63 100343.06
Capital Work In Progress 6957.79 7528.13 23005.84 69043.83
Investments 5846.18 16251.34 20516.11 69043.83
Inventories 10119.82 12136.51 14247.54 14836.72
Sundry Debtors 4163.62 3732.42 6227.58 4571.38
Cash and Bank Balance 239.31 308.35 217.79 500.13
Total Current Assets 14522.75 16177.28 20692.91 19908.23
Loans and Advances 8266.55 12506.71 18441.20 13375.15
Fixed Deposits 1906.85 1527.00 5609.75 23014.71
Total Current Assets, 24696.15 30210.99 44743.86 56298.09
Loans & Advances
Differed Credit 0.00 0.00 0.00 0.00
Current Liabilities 17656.02 24145.19 29228.54 42664.81
Provisions 3890.98 1712.87 2992.62 3010.90
Total Current Liabilities 21547.00 25858.06 32221.16 45675.71
& Provisions
Net Current Assets 3149.15 4352.93 12522.70 10622.38
Miscellaneous Expenses 0.00 0.00 0.00 0.00
Total Assets 71669.87 91792.86 117928.28 200277.45
Contingent Liabilities 24897.66 46767.18 37157.61 36432.69
Book Value (Rs) 324.03 439.57 542.74 727.66
 Profit & Loss A/c Of Reliance Industries ( Petro Chemicals)
Mar 06 Mar 07 Mar 08 Mar 09
12 Months 12 Months 12 Months 12 Months
Income
Sales Turnover 89124.46 118353.71 139269.46 146328.07
Excise Duty 8246.67 6654.68 5463.68 4369.07
Net Sales 80877.79 111699.03 133805.78 141959.00
Other Income 546.96 236.89 6595.66 1264.03
Stock Adjustments 2131.19 654.60 -1867.16 427.56
TOTAL INCOME 83555.94 112590.52 138534.28 143650.59
Expenditure
Raw Materials 59739.29 80791.65 98832.14 109284.34
Power & Fuel Cost 1146.26 2261.69 2052.84 3355.98
Employee Cost 978.45 2094.09 2119.33 2397.50
Other Manufacturing 668.31 1112.17 715.19 1162.98
Exp
Selling & Admin Exp 5872.33 5478.10 5543.40 4736.60
Preoperative Exp -155.14 -111.21 -175.46 -3265.65
Capital;ised-155.14
Total Expenses 68550.24 91947.72 109506.10 118234.17

Operating Profit 3400.91 4815.15 4847.14 5195.29

PBDIT 0.00 0.00 0.00 0.00
Interest 10711.18 14528.75 23018.14 18446.66
PBDT 0.88 0.51 48.10 0.00
Depreciation 10712.06 14529.26 23066.24 18466.66
Other Written Off 1642.72 2585.35 3559.85 3137.34
Extra Ordinary Items 3400.91 4815.15 4847.14 5195.29
Tax 10711.18 14528.75 23018.14 18446.66
Reported Net Profit 0.88 0.51 48.10 0.00
Total Value Addition 8810.95 11156.07 10673.96 8949.83
Preference Dividend 0.00 0.00 0.00 0.00
Equity Dividend 1393.51 1440.44 1631.24 1897.05
Corporate Dividend 195.44 202.02 277.23 322.40
Tax
Per Share Data ( Annualized)
Shares in issue 13935.08 13935.08 14536.49 15737.98
Earning Per Share 65.08 85.71 133.86 97.28
Equity Dividend 100.00 110.00 130.00 130.00
Book Value 324.03 439.57 542.74
 Ratio Analysis Of Reliance Industries For The Year 2009
1. Current Ratio

Current Ratio = Current Assets

Current Liabilities

Current Ratio = 56,298.09 = 1.23

45,675.71

Comments: The Current Ratio is 1.23 : 1 in 2008-2009. It means that for one rupee of
current liabilities, the current assets are 1.23 rupee is available to them

2. Acid Test Ratio

Acid Test Ratio = Quick Assets

Current Liabilities

Acid test Ratio = 36029.91 = 0.78

45,675.71

Comments: Acid Test Ratio indicates the liquid financial position of an enterprise. The
ratio has increased from 0.67 to 0.78 which is good for the company.

3. Inventory Turnover

Inventory Turnover = Cost Of Goods Sold

Avg Stock

Inventory Turnover = 2, 57,226 = 3.73

68,930
Comments: Stock turnover ratio shows the relationship between the sales & stock it
means how stock is being turned over into sales. It means with lower inventory the
 company has achieved greater sales.Thus the stock of the company is moving fast in
the market

4. Debt Equity Ratio

Debt Equity Ratio = Debt

Equity(Assets)

Debtors Equity Ratio = 73904.48 = 0.59

126372.97

Comments: This shows that with the increase in debt, the shareholders fund also
increased. This shows long-term capital structure of the company is sound. The lower
ratio viewed as favorable from long term creditor’s point of view.

5. Gross Profit Ratio

Gross Profit Ratio = Gross Profit

Net Sales

Gross Profit Ratio = 25,758.2 =18.14

1419.59

Comments: The gross profit is the profit made on sale of goods.

6. Return On Capital Employed

Return On Capital Employed = Net Profit * 100

Capital Employed

Return On Capital Employed = 15308.32 * 100 = 7.64%

200277.45
Comments: The return on capital employed shows the relationship between profit &
investment. Its purpose is to measure the overfall profitability from the total funds
made available by the owner & lenders.

7. Cash EPS
 Cash EPS = NPAT
No Of Equity Shares

Cash EPS = 1530932.00 = 97.28

15737.98

Comments: Cash EPS is calculated to find out the overall cash profitability of the company.