GROUP MEMBERS
AEGIDIUS SAVIO MONDOL
ANUSHREE MAZUMDAR
ALOK KUMAR
CHANDRIMA MUKHERJEE
POUSALI MUKHERJEE
PRABAR RAKSHIT
PRIYANKA AGARWAL
RANJEET SINGH
INTRODUCTION
• Founded 1966
• Founder Dhirubhai Ambani
• Headquarters Mumbai, Maharashtra, India
• Key people Mukesh Ambani
• Products Crude oil, Natural gas,
Petrochemicals, Petroleum, Polyester, textiles,
Retail.
HISTORY
1960 - 1980
• The company was co-founded by Dhirubhai Ambani and his cousin Champaklal
Damani in 1960s as Reliance Commercial Corporation.
• In 1965, the partnership was ended and Dhirubhai continued the polyester business
of the firm.
• In 1966, Reliance Textiles Industries Pvt Ltd was incorporated in Maharashtra. It
established a synthetic fabrics mill in the same year at Naroda in Gujarat.
• In 1975, company expanded its business into textiles, with "Vimal" becoming its
major brand in later years. The company held its Initial public offering (IPO) in 1977
1981 - 2000
• In 1985, the name of the company was changed from Reliance Textiles Industries
Ltd. to Reliance Industries Ltd.
• During the years 1985 to 1992, the company expanded its installed capacity for
producing polyster yarn by over 145,000 tonnes per annum.
• The Hazira petrochemical plant was commissioned in 1991-92.
• In 1993, Reliance turned to the overseas capital markets for funds through a global
depositary issue of Reliance Petroleum.
• In 1996, it became the first private sector company in India to be rated by
international credit rating agencies. S&P rated BB+, stable outlook, constrained by
the sovereign ceiling.
2001 - 2013
• In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became
India's two largest companies in terms of all major financial parameters.
• In 2001-02, Reliance Petroleum was merged with Reliance Industries.
• In 2002, Reliance announced India's biggest gas discovery (at the Krishna
Godavari basin) in nearly three decades and one of the largest gas
discoveries in the world during 2002. The in-place volume of natural gas
was in excess of 7 trillion cubic feet, equivalent to about 1.2 billion barrels of
crude oil. This was the first ever discovery by an Indian private sector
company.
• In 2002-03, RIL purchased a majority stake in Indian Petrochemicals
Corporation Ltd. (IPCL), India's second largest petrochemicals company,
from Government of India.IPCL was later merged with RIL in 2008.
• In the years 2005 and 2006, the company reorganized its business by
demerging its investments in power generation and distribution, financial
services and telecommunication services into four separate entities. In
2006, Reliance entered the organised retail market in India with the launch
of its retail store format under the brand name of 'Reliance Fresh‘.
• In 2010, Reliance entered Broadband services market with acquisition of
Infotel Broadband Services Limited, which was the only successful bidder
for pan-India fourth-generation (4G) spectrum auction held by Government
of India.[
MANAGEMENT
Employees
As on 31 March 2013, the company had 23,519 employees of
which 1,159 were women and 82 were employees with disabilities.
It also had 29,462 temporary employees on the same date.
As per its Sustainability Report for 2011-12, the attrition rate was
7.57%.In its 39th Annual General Meeting, the company Chairman
informed the shareholders of the investment plans of the company
of about 150000 crore (US$23 billion) in next three years. This
would be accompanied by increasing the staff strength in Retail
division from existing strength of 35,000 to 120,000 in next three
years and increasing employees in Telecom division from existing
3,000 to 10,000 in 12 months.
MANAGEMENT
• 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.
ORGANIZATIONAL CULTURE
• Work Culture
Research & Development (R&D), Technology Development and Innovation continues to be an
integral part of RIL's agenda for achieving growth, business profitability, sustainability and rural
transformation. The Reliance Technology Group (RTG), created by consolidating various
research and technology functions is helping create enhanced value delivery by leveraging all the
skills and competencies, and creating new opportunities at the interfaces.
Key objectives of RTG are as follows:
* Develop fit-for-purpose and sustainable technology and its application.
* Provide effective project support and assurance to manufacturing plants and businesses.
* Provide technical assurance to projects including technology selection and absorption.
* Proactively identify and support technical opportunities to add value across RIL's businesses.
* Develop technology strategies suited to create business growth and offset threats.
* Balance technology sourcing by a flexible strategy of smart buying, fast customization and
flagship development of key technologies.
* Exploit synergies cutting across technologies/disciplines.
* Improve technical productivity on a continuous basis.
* Develop / recruit staff with skills and motivation to meet current and future business needs.
* Create a fit-for-purpose process centric organization.
* Ensure long term technical health of RIL businesses.
* Manage technology and Intellectual Property (IP) assets for the Company.
MANAGEMENT
Score Card
• Salary 3.6
• Work Life Balance 3.4
• Corporate Culture 3.6
• Rewards &
Recognition 3.3
• Participative
Management 3.4
• Learning &
Development 3.8
• Career growth Plan 3.2
• Communication 3.2
Top Reasons to work here
Brand Name69%
Learning & Development57%
Career Growth
Opportunities42%
Top Skills to Succeed here
Relationship Management54%
Leadership42%
Team Work42%
SHARE PRICES
BSE
• As on 3rd december 2013: Rs.
861.90
• 7(+0.82%)
• Volume: 406056
NSE
• As on 3rd december 2013:
Rs.861.90
• 6.60 (+0.77%)
• Volume: 2,099,451
52 WEEKS HIGH LOW
• Previous closing price - 854.90
• Day's High/Low (Rs.)865.45 -
851.15
• 52wk High/Low (Rs.)954.80 -
765.00
• Market Capitalization
(Rs. Cr)278,497.13
• Previous closing price-861.90
• Day's low/high 850.65-865.50
• 52 week low/high 763.90-
955.00
RELIANCE INDUSTRIES STOCK PRICE
 MARKET CAP (RS CR) =
278,501.21
 P/E = 12.70
 BOOK VALUE (RS) = 557.10
 DIV (%) = 90.00%
 MARKET LOT 1
 INDUSTRY P/E = 13.91
 EPS (BASED ON STAND
ALONE NUMBERS) = 67.88
 P/C = 8.87
 PRICE/BOOK = 1.55
 DIV YIELD.(%) = 1.04%
 FACE VALUE (RS) = 10.00
 DELIVERABLES (%) = 52.25
DIVIDEND HISTORY
Year Month Dividend (%)
2013 Apr 90
2012 Apr 85
2011 Apr 80
2010 Apr 70
2009 Oct 130
2008 Apr 130
2007 Mar 110
2006 Apr 100
2005 Apr 75
2004 Apr 53
2003 Apr 50
CASH FLOW STATEMENT
Particulars Mar'13 Mar'12 Mar'11 Mar'10 Mar'09
Profit Before Tax 26284.00
25750.
00
25242.24
20547.4
4
18433.2
3
Net Cash Flow from
Operating Activity
32995.00
26974.
00
33280.5
2
20490.2
2
18245.8
6
Net Cash Used
in Investing Activity
-14797.00
-
3046.0
0
-
20332.8
8
-
18204.5
0
-
24084.2
0
Net Cash Used
in Financing Activity
-8249.00
-
11465.0
0
724.57
-
10999.6
0
23732.5
8
Net Inc/Dec In Cash and
Cash Equivalent
9949.00
12463.
00
13672.21
-
8713.88
17894.2
4
Cash and Cash Equivalent
- Beginning of the Year
39598.00
27135.0
0
13462.65
22176.5
3
4282.29
Cash and Cash Equivalent
- End of the Year
49547.00
39598.
00
27134.86
13462.6
5
22176.5
3
RATIO ANALYSIS
PARTICULARS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Adjusted cash EPS
(Rs) 94.37 91.74 101.50 79.00 133.14
Dividend per
share 9.00 8.50 8.00 7.00 13.00
Dividend payout
ratio (net profit) 14.64 14.67 13.66 14.97 14.49
Earning retention
ratio 85.36 84.21 85.87 84.16 85.92
Operating Profit Per
Share (Rs)
95.36 103.43 115.58 91.64 153.47
Earnings Per Share 65.05 61.26 61.97 49.64 97.28
Book Value 557.49 498.21 446.25 392.51 727.66
• Short term and long term solvency ratio –
Short term solvency ratios measures the short term ability of the enterprise to
pay its maturing obligations and to meet unexpected needs for cash. Long
term solvency ratios measures the ability of a company over a long period of
time, company’s ability to pay interest and face value of debt at maturity.
PARTICULARS
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Current Ratio 1.43 1.44 1.16 1.04 1.06
Quick Ratio 1.12 1.17 0.94 0.69 0.87
Debt Equity
Ratio
0.30 0.36 0.46 0.49 0.65
Long Term
Debt Equity
Ratio
0.24 0.30 0.38 0.44 0.59
• Coverage Ratios –
It determines whether or not earnings or profit sufficient
to satisfy claims of providers of long term capital. Higher
the better.
PARTICULA
RS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Interest
Cover
9.66 10.12 11.66 10.97 11.85
Total Debt to
Owners Fund
0.30 0.36 0.46 0.49 0.65
Financial
Charges
Coverage
Ratio
12.78 14.39 17.40 16.08 14.58
Long Term
Debt Equity
Ratio
0.24 0.30 0.38 0.44 0.59
• Profitability Ratios –
Higher ratio is favorable.
PARTICULA
RS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Gross Profit
Margin(%)
5.91 6.80 9.76 10.13 13.35
Net Profit
Margin(%)
5.70 5.99 8.08 8.35 10.65
Return On
Capital
Employed(%)
12.50 12.18 12.60 11.35 10.96
Operating
Profit
Margin(%)
8.54 10.25 15.24 15.60 17.01
• Management Efficiency Ratios –
These ratios are computed to evaluate the efficiency with which firm
manages and utilizes assets and capital. Higher the ratio, better will
be the use of assets and capital
PARTICUL
ARS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Inventory
Turnover
Ratio
8.69 10.42 9.59 8.29 12.92
Debtors
Turnover
Ratio
23.78 18.40 17.05 23.67 26.29
Investments
Turnover
Ratio
8.69 10.42 9.59 8.29 12.92
Fixed Assets
Turnover
Ratio
2.24 2.05 1.58 1.24 1.01
Total Assets
Turnover
Ratio
2.04 1.91 1.66 1.48 0.79
BALANCE SHEET ITEMS
PARTICUL
ARS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Investments 52,509.00 54,008.00 37,651.54 23,228.62 21,606.49
Inventories 42,729.00 35,955.00 29,825.38 26,981.62 14,836.72
Sundry Debtors 11,880.00 18,424.00 17,441.94 11,660.21 4,571.38
Cash and Bank
Balance
49,547.00 889.00 604.57 362.36 500.13
Loans and Advances 32,982.00 24,573.00 17,320.60 10,517.57 13,375.15
Fixed Deposits 0.00 38,709.00 26,530.29 13,100.29 21,676.40
Current Liabilities 79,620.00 66,244.00 61,399.87 48,018.65 42,664.81
Provisions 4,348.00 4,258.00 4,563.48 3,565.43 3,010.90
Reserves 176,766.00 159,698.00 142,799.95 125,095.97 112,945.44
Contingent
Liabilities
28,615.00 26,597.00 21,957.45 24,429.02 33,841.54
MACROECONOMIC FACTORS
INFLATION EFFECT
The agent count at Reliance Life Insurance has fallen 26,000, or 8% to
1.24 lakh at the end of March 31, 2013
GOVERNMENT POLICY EFFECT
 Amidst move to force Reliance Industry to sell gas from its main fields in
KG-D^ block at old rates of $ 4.2, the Mukesh Ambani-run firm today hit
out saying the government was not honouring signed contracts and
extraneous factors were being brought into business.
 RIL, which has faced numerous delays in getting approvals and shifting
goal-posts, said the country did not have a stable policy regime and this
was responsible for exit of global energy giants like Royal Dutch Sell, BHP
Biliton of Australia, Statoil of Norway and Brazil's petrobras.
PEER GROUP COMPARISON
• Indian Oil Corporation
• Bharat Petroleum Corporation
PEER GROUP COMPARISON
Share prices as on 3rd December ’13
BSE NSE
Rs. 202.20 Rs. 202.35
VOLUME : 43,515 VOLUME : 285,540
PEER GROUP COMPARISON
• BHARAT PETROLEUM CORPORATION
Share prices as on 3rd December ’13
BSE NSE
Rs. 350.20 Rs. 350.70
VOLUME : 57,377 VOLUME : 1,275,192
COMPARING RELIANCE INDUSTRIES WITH INDIAN OIL
CORPORATION
Ratios Reliance industries Indian Oil
Corporation
Gross Profit Ratio 5.91 3.09
Net Profit Ratio 5.70 0.89
Return On Capital Employed 12.50 13.08
Operating Profit Margin 8.54 4.20
Higher the ratio, the more favorable it is.
Inventory Turnover Ratio
8.69
8.15
Debtors Turnover Ratio
23.78
36.01
Investments Turnover Ratio
8.69
8.15
Fixed Assets Turnover Ratio
2.24
4.49
Higher the ratio, better will be the use of assets and capital
PARTICULARS Reliance Indian oil
corporation
Earnings per share 65.05 16.29
P/E ratio 13.24 12.41 12.42
Investments 52509.00 ( in Rs. Cr.) 18678.76 ( in Rs. Cr.)
Debtors 11880 15502.87
Contingent liabilities 50533 28085.59
LIQUIDITY and SOLVENCY RATIOS
Ratios Reliance Indian Oil
Corporation
Current ratio (%) 1.43 0.83
Quick ratio (%) 1.12 0.74
Debt-Equity ratio (%) 0.30 1.22
COMPARING RELIANCE INDUSTRIES WITH
BHARAT PETROLEUM CORPORATION
Ratios Reliance industries Bharat Petroleum
Corporation
Gross Profit Ratio 5.91 1.74
Net Profit Ratio 5.70 1.09
Return On Capital Employed 12.50 14.57
Operating Profit Margin 8.54 2.54
Higher the ratio, the more favorable it is.
Inventory Turnover Ratio
8.69
14.39
Debtors Turnover Ratio
23.78
46.16
Investments Turnover Ratio
8.69
14.39
Fixed Assets Turnover Ratio
2.24
7.17
Higher the ratio, better will be the use of assets and capital
PARTICULARS Reliance Bharat Petroleum
Corporation
Earnings per share 65.05 36.55
P/E ratio 13.24 9.58 9.59
Investments 52509.00 ( in Rs. Cr.) 12103 (in Rs. Cr.)
Debtors 11880 4025.13
Contingent liabilities 50533 11467.93
LIQUIDITY and SOLVENCY RATIOS
Ratios Reliance Bharat Petroleum
Corporation
Current ratio (%) 1.43 0.78
Quick ratio (%) 1.12 0.71
Debt-Equity ratio (%) 0.30 1.42
ACHIEVEMENTS OF RELIANCE
INDUSTRIES
RIL continues to receive recognition for industry leadership and excellence in its fields
of operations. Some of the major awards and recognitions conferred during the year
include:
• Received the appreciation plaque from ASSOCHAM for its CSR activities
• Jamnagar Manufacturing Division (DTA) refinery received the Jawaharlal Nehru
Centenary Award from the Ministry of Petroleum & Natural Gas for being among
the three refineries, which have achieved the lowest specific energy consumption
among Indian refineries.
• Dahej Manufacturing Division received the best viewer’s choice award for
implementing a Six Sigma Project from the American Society for Quality
• Hazira Manufacturing Division, Reliance Community Care Centre, received a
Trophy for work done under the National AIDS Control Program Phase III from
Population Foundation of India
• Nagothane Manufacturing Division received the National Award for Innovative
Training Practices for security training practices by Indian Society for Training &
Development.
• Hazira Manufacturing Division received the CII-ITC Sustainability Awards 2012
and the coveted Certificate of Commendation for Significant Achievement in the
area of Sustainable Development.
THANK YOU…
Presentation on Reliance

Presentation on Reliance

  • 1.
    GROUP MEMBERS AEGIDIUS SAVIOMONDOL ANUSHREE MAZUMDAR ALOK KUMAR CHANDRIMA MUKHERJEE POUSALI MUKHERJEE PRABAR RAKSHIT PRIYANKA AGARWAL RANJEET SINGH
  • 2.
    INTRODUCTION • Founded 1966 •Founder Dhirubhai Ambani • Headquarters Mumbai, Maharashtra, India • Key people Mukesh Ambani • Products Crude oil, Natural gas, Petrochemicals, Petroleum, Polyester, textiles, Retail.
  • 3.
    HISTORY 1960 - 1980 •The company was co-founded by Dhirubhai Ambani and his cousin Champaklal Damani in 1960s as Reliance Commercial Corporation. • In 1965, the partnership was ended and Dhirubhai continued the polyester business of the firm. • In 1966, Reliance Textiles Industries Pvt Ltd was incorporated in Maharashtra. It established a synthetic fabrics mill in the same year at Naroda in Gujarat. • In 1975, company expanded its business into textiles, with "Vimal" becoming its major brand in later years. The company held its Initial public offering (IPO) in 1977 1981 - 2000 • In 1985, the name of the company was changed from Reliance Textiles Industries Ltd. to Reliance Industries Ltd. • During the years 1985 to 1992, the company expanded its installed capacity for producing polyster yarn by over 145,000 tonnes per annum. • The Hazira petrochemical plant was commissioned in 1991-92. • In 1993, Reliance turned to the overseas capital markets for funds through a global depositary issue of Reliance Petroleum. • In 1996, it became the first private sector company in India to be rated by international credit rating agencies. S&P rated BB+, stable outlook, constrained by the sovereign ceiling.
  • 4.
    2001 - 2013 •In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest companies in terms of all major financial parameters. • In 2001-02, Reliance Petroleum was merged with Reliance Industries. • In 2002, Reliance announced India's biggest gas discovery (at the Krishna Godavari basin) in nearly three decades and one of the largest gas discoveries in the world during 2002. The in-place volume of natural gas was in excess of 7 trillion cubic feet, equivalent to about 1.2 billion barrels of crude oil. This was the first ever discovery by an Indian private sector company. • In 2002-03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL), India's second largest petrochemicals company, from Government of India.IPCL was later merged with RIL in 2008. • In the years 2005 and 2006, the company reorganized its business by demerging its investments in power generation and distribution, financial services and telecommunication services into four separate entities. In 2006, Reliance entered the organised retail market in India with the launch of its retail store format under the brand name of 'Reliance Fresh‘. • In 2010, Reliance entered Broadband services market with acquisition of Infotel Broadband Services Limited, which was the only successful bidder for pan-India fourth-generation (4G) spectrum auction held by Government of India.[
  • 5.
    MANAGEMENT Employees As on 31March 2013, the company had 23,519 employees of which 1,159 were women and 82 were employees with disabilities. It also had 29,462 temporary employees on the same date. As per its Sustainability Report for 2011-12, the attrition rate was 7.57%.In its 39th Annual General Meeting, the company Chairman informed the shareholders of the investment plans of the company of about 150000 crore (US$23 billion) in next three years. This would be accompanied by increasing the staff strength in Retail division from existing strength of 35,000 to 120,000 in next three years and increasing employees in Telecom division from existing 3,000 to 10,000 in 12 months.
  • 6.
    MANAGEMENT • Backward verticalintegration 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.
  • 7.
    ORGANIZATIONAL CULTURE • WorkCulture Research & Development (R&D), Technology Development and Innovation continues to be an integral part of RIL's agenda for achieving growth, business profitability, sustainability and rural transformation. The Reliance Technology Group (RTG), created by consolidating various research and technology functions is helping create enhanced value delivery by leveraging all the skills and competencies, and creating new opportunities at the interfaces. Key objectives of RTG are as follows: * Develop fit-for-purpose and sustainable technology and its application. * Provide effective project support and assurance to manufacturing plants and businesses. * Provide technical assurance to projects including technology selection and absorption. * Proactively identify and support technical opportunities to add value across RIL's businesses. * Develop technology strategies suited to create business growth and offset threats. * Balance technology sourcing by a flexible strategy of smart buying, fast customization and flagship development of key technologies. * Exploit synergies cutting across technologies/disciplines. * Improve technical productivity on a continuous basis. * Develop / recruit staff with skills and motivation to meet current and future business needs. * Create a fit-for-purpose process centric organization. * Ensure long term technical health of RIL businesses. * Manage technology and Intellectual Property (IP) assets for the Company.
  • 8.
    MANAGEMENT Score Card • Salary3.6 • Work Life Balance 3.4 • Corporate Culture 3.6 • Rewards & Recognition 3.3 • Participative Management 3.4 • Learning & Development 3.8 • Career growth Plan 3.2 • Communication 3.2 Top Reasons to work here Brand Name69% Learning & Development57% Career Growth Opportunities42% Top Skills to Succeed here Relationship Management54% Leadership42% Team Work42%
  • 9.
    SHARE PRICES BSE • Ason 3rd december 2013: Rs. 861.90 • 7(+0.82%) • Volume: 406056 NSE • As on 3rd december 2013: Rs.861.90 • 6.60 (+0.77%) • Volume: 2,099,451
  • 10.
    52 WEEKS HIGHLOW • Previous closing price - 854.90 • Day's High/Low (Rs.)865.45 - 851.15 • 52wk High/Low (Rs.)954.80 - 765.00 • Market Capitalization (Rs. Cr)278,497.13 • Previous closing price-861.90 • Day's low/high 850.65-865.50 • 52 week low/high 763.90- 955.00
  • 11.
    RELIANCE INDUSTRIES STOCKPRICE  MARKET CAP (RS CR) = 278,501.21  P/E = 12.70  BOOK VALUE (RS) = 557.10  DIV (%) = 90.00%  MARKET LOT 1  INDUSTRY P/E = 13.91  EPS (BASED ON STAND ALONE NUMBERS) = 67.88  P/C = 8.87  PRICE/BOOK = 1.55  DIV YIELD.(%) = 1.04%  FACE VALUE (RS) = 10.00  DELIVERABLES (%) = 52.25
  • 12.
    DIVIDEND HISTORY Year MonthDividend (%) 2013 Apr 90 2012 Apr 85 2011 Apr 80 2010 Apr 70 2009 Oct 130 2008 Apr 130 2007 Mar 110 2006 Apr 100 2005 Apr 75 2004 Apr 53 2003 Apr 50
  • 13.
    CASH FLOW STATEMENT ParticularsMar'13 Mar'12 Mar'11 Mar'10 Mar'09 Profit Before Tax 26284.00 25750. 00 25242.24 20547.4 4 18433.2 3 Net Cash Flow from Operating Activity 32995.00 26974. 00 33280.5 2 20490.2 2 18245.8 6 Net Cash Used in Investing Activity -14797.00 - 3046.0 0 - 20332.8 8 - 18204.5 0 - 24084.2 0 Net Cash Used in Financing Activity -8249.00 - 11465.0 0 724.57 - 10999.6 0 23732.5 8 Net Inc/Dec In Cash and Cash Equivalent 9949.00 12463. 00 13672.21 - 8713.88 17894.2 4 Cash and Cash Equivalent - Beginning of the Year 39598.00 27135.0 0 13462.65 22176.5 3 4282.29 Cash and Cash Equivalent - End of the Year 49547.00 39598. 00 27134.86 13462.6 5 22176.5 3
  • 14.
    RATIO ANALYSIS PARTICULARS Mar'13 Mar '12 Mar '11 Mar '10 Mar '09 Adjusted cash EPS (Rs) 94.37 91.74 101.50 79.00 133.14 Dividend per share 9.00 8.50 8.00 7.00 13.00 Dividend payout ratio (net profit) 14.64 14.67 13.66 14.97 14.49 Earning retention ratio 85.36 84.21 85.87 84.16 85.92 Operating Profit Per Share (Rs) 95.36 103.43 115.58 91.64 153.47 Earnings Per Share 65.05 61.26 61.97 49.64 97.28 Book Value 557.49 498.21 446.25 392.51 727.66
  • 15.
    • Short termand long term solvency ratio – Short term solvency ratios measures the short term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash. Long term solvency ratios measures the ability of a company over a long period of time, company’s ability to pay interest and face value of debt at maturity. PARTICULARS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Current Ratio 1.43 1.44 1.16 1.04 1.06 Quick Ratio 1.12 1.17 0.94 0.69 0.87 Debt Equity Ratio 0.30 0.36 0.46 0.49 0.65 Long Term Debt Equity Ratio 0.24 0.30 0.38 0.44 0.59
  • 16.
    • Coverage Ratios– It determines whether or not earnings or profit sufficient to satisfy claims of providers of long term capital. Higher the better. PARTICULA RS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Interest Cover 9.66 10.12 11.66 10.97 11.85 Total Debt to Owners Fund 0.30 0.36 0.46 0.49 0.65 Financial Charges Coverage Ratio 12.78 14.39 17.40 16.08 14.58 Long Term Debt Equity Ratio 0.24 0.30 0.38 0.44 0.59
  • 17.
    • Profitability Ratios– Higher ratio is favorable. PARTICULA RS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Gross Profit Margin(%) 5.91 6.80 9.76 10.13 13.35 Net Profit Margin(%) 5.70 5.99 8.08 8.35 10.65 Return On Capital Employed(%) 12.50 12.18 12.60 11.35 10.96 Operating Profit Margin(%) 8.54 10.25 15.24 15.60 17.01
  • 18.
    • Management EfficiencyRatios – These ratios are computed to evaluate the efficiency with which firm manages and utilizes assets and capital. Higher the ratio, better will be the use of assets and capital PARTICUL ARS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Inventory Turnover Ratio 8.69 10.42 9.59 8.29 12.92 Debtors Turnover Ratio 23.78 18.40 17.05 23.67 26.29 Investments Turnover Ratio 8.69 10.42 9.59 8.29 12.92 Fixed Assets Turnover Ratio 2.24 2.05 1.58 1.24 1.01 Total Assets Turnover Ratio 2.04 1.91 1.66 1.48 0.79
  • 19.
    BALANCE SHEET ITEMS PARTICUL ARSMar '13 Mar '12 Mar '11 Mar '10 Mar '09 Investments 52,509.00 54,008.00 37,651.54 23,228.62 21,606.49 Inventories 42,729.00 35,955.00 29,825.38 26,981.62 14,836.72 Sundry Debtors 11,880.00 18,424.00 17,441.94 11,660.21 4,571.38 Cash and Bank Balance 49,547.00 889.00 604.57 362.36 500.13 Loans and Advances 32,982.00 24,573.00 17,320.60 10,517.57 13,375.15 Fixed Deposits 0.00 38,709.00 26,530.29 13,100.29 21,676.40 Current Liabilities 79,620.00 66,244.00 61,399.87 48,018.65 42,664.81 Provisions 4,348.00 4,258.00 4,563.48 3,565.43 3,010.90 Reserves 176,766.00 159,698.00 142,799.95 125,095.97 112,945.44 Contingent Liabilities 28,615.00 26,597.00 21,957.45 24,429.02 33,841.54
  • 26.
    MACROECONOMIC FACTORS INFLATION EFFECT Theagent count at Reliance Life Insurance has fallen 26,000, or 8% to 1.24 lakh at the end of March 31, 2013 GOVERNMENT POLICY EFFECT  Amidst move to force Reliance Industry to sell gas from its main fields in KG-D^ block at old rates of $ 4.2, the Mukesh Ambani-run firm today hit out saying the government was not honouring signed contracts and extraneous factors were being brought into business.  RIL, which has faced numerous delays in getting approvals and shifting goal-posts, said the country did not have a stable policy regime and this was responsible for exit of global energy giants like Royal Dutch Sell, BHP Biliton of Australia, Statoil of Norway and Brazil's petrobras.
  • 27.
    PEER GROUP COMPARISON •Indian Oil Corporation • Bharat Petroleum Corporation
  • 28.
    PEER GROUP COMPARISON Shareprices as on 3rd December ’13 BSE NSE Rs. 202.20 Rs. 202.35 VOLUME : 43,515 VOLUME : 285,540
  • 29.
    PEER GROUP COMPARISON •BHARAT PETROLEUM CORPORATION Share prices as on 3rd December ’13 BSE NSE Rs. 350.20 Rs. 350.70 VOLUME : 57,377 VOLUME : 1,275,192
  • 30.
    COMPARING RELIANCE INDUSTRIESWITH INDIAN OIL CORPORATION Ratios Reliance industries Indian Oil Corporation Gross Profit Ratio 5.91 3.09 Net Profit Ratio 5.70 0.89 Return On Capital Employed 12.50 13.08 Operating Profit Margin 8.54 4.20 Higher the ratio, the more favorable it is. Inventory Turnover Ratio 8.69 8.15 Debtors Turnover Ratio 23.78 36.01 Investments Turnover Ratio 8.69 8.15 Fixed Assets Turnover Ratio 2.24 4.49 Higher the ratio, better will be the use of assets and capital
  • 31.
    PARTICULARS Reliance Indianoil corporation Earnings per share 65.05 16.29 P/E ratio 13.24 12.41 12.42 Investments 52509.00 ( in Rs. Cr.) 18678.76 ( in Rs. Cr.) Debtors 11880 15502.87 Contingent liabilities 50533 28085.59 LIQUIDITY and SOLVENCY RATIOS Ratios Reliance Indian Oil Corporation Current ratio (%) 1.43 0.83 Quick ratio (%) 1.12 0.74 Debt-Equity ratio (%) 0.30 1.22
  • 32.
    COMPARING RELIANCE INDUSTRIESWITH BHARAT PETROLEUM CORPORATION Ratios Reliance industries Bharat Petroleum Corporation Gross Profit Ratio 5.91 1.74 Net Profit Ratio 5.70 1.09 Return On Capital Employed 12.50 14.57 Operating Profit Margin 8.54 2.54 Higher the ratio, the more favorable it is. Inventory Turnover Ratio 8.69 14.39 Debtors Turnover Ratio 23.78 46.16 Investments Turnover Ratio 8.69 14.39 Fixed Assets Turnover Ratio 2.24 7.17 Higher the ratio, better will be the use of assets and capital
  • 33.
    PARTICULARS Reliance BharatPetroleum Corporation Earnings per share 65.05 36.55 P/E ratio 13.24 9.58 9.59 Investments 52509.00 ( in Rs. Cr.) 12103 (in Rs. Cr.) Debtors 11880 4025.13 Contingent liabilities 50533 11467.93 LIQUIDITY and SOLVENCY RATIOS Ratios Reliance Bharat Petroleum Corporation Current ratio (%) 1.43 0.78 Quick ratio (%) 1.12 0.71 Debt-Equity ratio (%) 0.30 1.42
  • 34.
    ACHIEVEMENTS OF RELIANCE INDUSTRIES RILcontinues to receive recognition for industry leadership and excellence in its fields of operations. Some of the major awards and recognitions conferred during the year include: • Received the appreciation plaque from ASSOCHAM for its CSR activities • Jamnagar Manufacturing Division (DTA) refinery received the Jawaharlal Nehru Centenary Award from the Ministry of Petroleum & Natural Gas for being among the three refineries, which have achieved the lowest specific energy consumption among Indian refineries. • Dahej Manufacturing Division received the best viewer’s choice award for implementing a Six Sigma Project from the American Society for Quality • Hazira Manufacturing Division, Reliance Community Care Centre, received a Trophy for work done under the National AIDS Control Program Phase III from Population Foundation of India • Nagothane Manufacturing Division received the National Award for Innovative Training Practices for security training practices by Indian Society for Training & Development. • Hazira Manufacturing Division received the CII-ITC Sustainability Awards 2012 and the coveted Certificate of Commendation for Significant Achievement in the area of Sustainable Development.
  • 35.