This report includes balance sheet, Profit and Loss Statement, Cash Flow Statement of Reliance industries Limited and its ratio analysis like Current ratio, Quick ratio, Cash ratio, Net Working Capital , Debt Equity ratio, Proprietory ratio, Inventory Turnover ratio, Debtors turnover ratio, Gross Profit margin, Net profit margin, Return on Equity, Price earning ratio, Dividend Payout ratio etc.

1. FINANCIAL STATEMENT
ANALYSIS Of
RELIANCE INDUSTRIES LIMITED
Name - Nirupama Maharana
Regd. No. - 200409120038
Subject - Business Accounting
Branch - BBA 2nd
sem
Centurion University of Technology and Management,
Bhubaneswar Campus

3. dt

5. LIQUIDITY RATIOS
1.Current Ratio = Current Assets = 1,66,597 = 0.54
Current Liabilities 3,10,183
2.Quick Ratio = Current Assets - Inventories
Current Liabilities
= 1,66,597 - 38,802 = 1,27,795 = 0.41
3,10,183 3,10,183
3. Cash Ratio = Cash + Short-term Investments
Current liabilities
= Cash +( Investments + Trade receivable + other financial assets)
Current liabilities
= 8,443 + 70,030 + 7,483 + 16,100 = 1,02,056 = 0.329
3,10,183 3,10,183
4. Net Working Capital Ratio = Net working capital (NWC)
Net Assets (NA)
= Current assets - Current Liabilities
Net current assets + Net Fixed assets
= 1,66,597 - 3,10,183
(1,66,597 - 3,10,183 ) + (8,02,315 - 2,34,145
= - 1,43,586 = -1,43.586
- 1,43,586 + 5,68,170 4,24,584
= - 0.338
LEVERAGE RATIOS
1. Debt Equity Ratio = Total Long-Term debt = 2,34,145 = 0.55
Shareholder’s fund 4,24,584

6. 2. TL to TA Ratio = Total liabilities = 5,44,328 = 0.56
Total Assets 9,68,912
3. Proprietary Ratio = Proprietor’s fund = 4,24,584 = 0.438
Total assets 9,68,912
ACTIVITY RATIOS
1. Inventory Turnover = Cost of goods sold (Total expenses) = 3,20,860
Average Inventory (38,802 + 44,144) / 2
= 3,20,860 = 7.736
41,473
2. Debtors Turnover = Credit sales
Average debtors
Here debtors turnover ratio is calculated as = Sales ( Revenue from Operations)
Average Debtors
= 3,50,880 = 3,50,880
(7,483 + 12,110) / 2 19,593 / 2
= 3,50,880 = 35.81
9,796.5
3. Asset Turnover Ratio = Sales (Revenue from operations)
Net Assets (Net current assets + Net fixed assets)
= 3,50,880 = 0.826
4,24,584
PROFITABILITY RATIOS
1. Gross profit margin = gross profit = Revenue - Cost of goods sold
sales sales (Revenue from Operations)
= 3,65,202 - 3,20,860 = 44,342 = 0.126
3,50,880 3,50,880

7. 2. Net profit Margin = Net Profit (PAT) = 30,903 = 0.088
Sales 3,50,880
(Revenue from operations)
3. Return on Investment = Earning before interest & taxes (EBIT)
Total assets
= 44,561 = 0.045
9,68,912
4. Return on Equity = Profit after Tax (PAT) = Profit after tax (PAT)
Net worth Total Assets - Total liabilities
= 30,903 = 30,903 = 0.07
9,68,912 -5,44,328 4,24,584
5. Earning Per share = Profit After Taxes (PAT) (in rupees)
No. Of shares outstanding
= 30,90,30,00,0000 = 48.75
6,33,90,76,923.07
6. Price earning ratio = Market price per share
Earning per share (EPS)
= 1103.29 = 22.63
48.75
7. Dividend pay-out Ratio = Dividend per share = Dividend paid / No. Of shares outstanding
Earning per share Earning Per Share
= 45,84,00,00,000 / 6,33,90,76,923.07 = 7.23 = 0.148
48.75 48.75