Reliance Industries Ltd is an Indian conglomerate company with diversified business activities. It has a presence in refining and petrochemicals, oil and gas exploration and production, retail, digital services, and media and entertainment. A financial analysis of Reliance reveals an increase in net cash from operating activities from 2019 to 2020 despite a decrease in net profit. The company's debt-equity ratio of 0.63 indicates good financial stability. Reliance has grown significantly over the years to become the largest company in India.

1. PREPARED BY : GONDALIYA HARD
ID.NO. : GG-054
CLASS : S.Y. MBA

2. INTRODUCTION TO
RELIANCE INDUSTRIES

3. MISSION ,VISION &
VALUES OF RELIANCE
MISSION
To provide the best and most value-adding advice within our advisory expertise areas
To be an independent sparring-partner and to provide excellent advice for our clients
within our advisory expertise areas
VISION
To be our clients’ first call and preferred collaboration partner within our advisory
expertise areas
To consistently exceed our clients’ expectations for professional and value-adding advice
VALUES : Quality, Innovation ,Ambition, Honesty &Integrity

4. PRESENCE OF RELIANCE
INDUSTRIES
RELIANCE
INDUSTRIES LTD
RETAIL DIGITAL SERVICES
MEDIA &
ENTERTAINMENT
REFINING &
MARKETING
PETROCHEMICALS
EXPLORATION &
PRODUCTION

5. MAJOR COMPETITORS TO
RELIANCE INDUSTRIES
COMPETITORS
RETAIL
Wal-Mart
Amazon
Alibaba
PETROLEUM
Sinopec
China National
Petroleum Corp.
(PetroChina)
Royal Dutch Shell
TELECOM/DIGITAL
SERVICES
Bharti Airtel Limited
Bharat Sanchar Nigam
Limited(BSNL)
Vodafone Idea (VI)
PETROCHEMICAL
Indian Oil Corporation
Gas Authority of India
Limited or GAIL
Haldia Petrochemicals
Limited
Finolex Ind

6. SWOT ANALYSIS OF
RELIANCE INDUSTRIES
Strengths:
-Strong market position in various categories
-Brand Name and financial position allow RIL to expand
-The operational advantage in refining
-Expansion in the retail industry
-Reliance Jio
Weaknesses:
-Production declining in exploratory blocks
-Recent divesting and relinquishing activities affects growth
-Legal proceedings and litigations
Opportunities:
-New Plants
-Investing in attractive international oil and gas destinations
-CBM as unconventional natural gas
Threats:
-Intense competition in all sectors
-In telecom
-Reliance Jio free offers ending
SWOT OF RELIANCE INDUSTRIES
LIMITED.

7. RELIANCE
INDUSTRIES LTD
RETAIL
RELIANCE RETAIL
RELIANCE FRESH
RELIANCE SMART
RELIANCE MARKET
RELIANCE DIGITAL
RELIANCE DIGITAL
XPRESS MINI
I STORE
RELIANCE RESQ
RELIANCE JEWLS
RELIANCE TRENDS
RELIANCE
FOOTPRINT
LYF
DIGITAL SERVICES
JIO
MYJIO
JIO LAY
JIO ON DEMAND
JIO BEATS
JIO MAGS
JIO XPRESS NEWS
JIO CHAT
JIO DRIVE
JIO JOIN
JIO MONEY
JIO SECURITY
JIO NEWS
MEDIA &
ENTERTAINMENT
TV CHANNELS
FILMED
ENTERTAINMENT
CONTENT ASSET
MONETIZATION
DIGITAL CONTENT
DIGITAL
COMMERCE
PUBILISHING
BUSINESS
ALLIED BUSINESS
REFINING &
MARKETING
REFINING
PETROLEUM
RETAIL
PETROCHEMICALS
POLYMERS
CHEMICALS
POLYSTERS &
FIBER
INTERMEDIATES
EXPLORATION &
PRODUCTION
OIL & GAS
EXPLORATION &
PRODUCTION
SECTORIAL PRODUCT
PORTFOLIO

8. SUCCESS STRATEGY
IDENTIFIED
The company adopted the aggressive and selective pricing
policing strategy; and focuses on the market analysis. With
the help of Jio the telecom brand of Reliance, the company
tries to digitalize India.
One of the main parts of their marketing strategy is the
Promotional strategy. They spend a lesser amount for their
campaigns, but they reduce the product prices what help
them to attract more customer.

9. SECTORIAL FINANCIALS
OF RELIANCE

10. FINANCIALANALYSIS
(TOPIC PROFILE)
“Financial analysis is the process of evaluating businesses, projects, budgets,
and other finance-related transactions to determine their performance and
suitability.”
 TOOLS OF FINANCIALANALYSIS
TOOLS
OF
FINANCI
AL
ANALYSI
S
Cash
Flow
Analysis
Ratio
Analysis
Trend
Analysis
Common
Size
Statement
s
Comparat
ive
Statement
s

11. OBJECTIVES OF
FINANCIALANALYSIS
Reviewing the performance of a
company over the past periods
Assessing the current position &
operational efficiency
Predicting growth & profitability
prospects
Loan Decision by Financial Institutions
and Banks

12. LIMITATION OF
FINANCIALANALYSIS
 Intangible assets not recorded. Firms do not record many
intangible assets. Instead, any expenditure made to create an
intangible asset are immediately charged to expense.
 Firms consider only the monetary aspects of the financial
statements.
Firms prepare the financial statements on the basis of on-
going concept, as such, it does not reflect the current
position.
 The statements do not necessarily provide any value in
predicting what will happen in the future.

13. CASH FLOW ANALYSIS
“Cash flow analysis is a financial statement that
records how money flows into and out of your business
during a specific predetermined period of time.
 It can help you better understand where your money is
going and how much cash you have at any given time.
Operating activities: Operating inflows include money
received from sales/paid receivables. Operating outflows
include money paid to suppliers, employee payroll, any
taxes not related to investing or financing, and depreciation
or amortization of business assets.

14. CONTINUED...
Investment activities: This refers to the purchase
or sale of assets not related to day-to-day
operations, such as business equipment, real estate
or securities.
Financing activities: Issuing stock to
shareholders or buying it back, making payments on
a business loan, or distributing dividends are all
examples of financing activities.

15. CASH FLOW STATEMENT
OF RELIANCE

16. MAJOR INTERPRETATION
FROM RELIANCE CASHFLOW
STATEMENT
OPERATING ACTIVITIES
Net Profit Before Tax has occurred from Rs 55,227 Crore
in march 2019 to Rs 53,606 Crore in march 2020 , it might
be caused because of Lockdown imposed ( COVID-19).
Finance Costs has increased from Rs 16,491 Crore in
march 2019 to Rs 21,880 Crore in march 2020, the company
is bearing huge finance costs in 2020 , because of covid -19 ,
they need manage there cash flows and have some liquidity
in cash flows.
Net Cash generated from Operating Activities has been
increased from Rs 42,346 Crore from march 2019 to Rs
98,074

17. CONTINUED...

18. MAJOR INTERPRETATION
FROM RELIANCE
CASHFLOW STATEMENT
INVESTING ACTIVITIES
 Company has made Purchase of Property, Plant and
Equipment and Other Intangible Assets hence the Cash Flow
of company has reduced negatively from Rs ((93,626))
Crore in 2019 to Rs (76,517) Crore in 2020
Upfront Fibre Payment has incurred in 2020 of Rs (16,439)
Crore
 Net Cash Used in Investing Activities has decreased
negatively from Rs (95,128) Crore To Rs (75,717) Crore

19. CONTINUED...

20. MAJOR INTERPRETATION
FROM RELIANCE
CASHFLOW STATEMENT
FINANCING ACTIVITIES
Proceeds from Issue of Equity Share Capital has decreased
from Rs 117 Crore in 2019 To Rs 18 Crore in 2020
Interest Paid by RlL has negative increment from Rs
(23,338) Crore to Rs (28,508) Crore
Net Cash Used in Financing Activities in 2020 is Rs
(2,541) Crore
Net Increase in Cash and Cash Equivalents has
increased from Rs 3,124 Crore in 2019 to Rs 19,816
Crore in 2020

21. GRAPHICAL REPRESENTATION
OF CASHFLOW ACTIVITIES
98,074
42,346
-75,717
-95,128
-2,541
55,906
RS
IN
CRORES
2019-20 2018-19
Operating 98,074 42,346
Investing -75,717 -95,128
Financing -2,541 55,906
Cash Flow of Reliance
Operating Investing Financing

22. RATIO ANALYSIS
Ratio analysis is a quantitative method of gaining
insight into a company's liquidity, operational
efficiency, and profitability by studying its financial
statements such as the balance sheet and income
statement.
Ratio analysis compares line-item data from a
company's financial statements to reveal insights
regarding profitability, liquidity, operational efficiency,
and solvency.

23. MAJOR RATIO ANALYSISED
OF RELIANCE
Principal Groups 31st Mar 2020 Principal Ratios 31st Mar 2020
Working Capital (154656) Current Ratio 0.62:1
(Current Assets-Current Liabilities) (Current Assets : Current Liabilities)
Wkg. Capital Turnover (3.35) Quick Ratio 0.44:1
(Sales Accounts / Working Capital) (Current Assets-Stock-in-Hand : Current Liabilities)
Inventory Turnover 8.27 Debt/Equity Ratio 0.63:1
(Sales Accounts / Closing Stock) Debt Equity Ratio = Total long term debts / shareholder' funds
Return on Investment % (7.90) Gross Profit % 27.74%
ROI = Net Income / Cost of Investment Nett Profit % 6.52%
Return on Wkg. Capital % (25.78) Operating Cost % 10.15%
(Nett Profit / Working Capital) % (as percentage of Sales Accounts)
Return on Capital Employed (0.07) Recv. Turnover in days 13.77 days
(EBIT / Total Asset - Total Current Liability) (payment performance of Debtors)
Reliance Industries Limited (2019-2020)
Ratio Analysis

24. MAJOR INTERPRETATION OF
FINANCIAL
RATIOS(RELIANCE)
NET PROFIT RATIO
A high ratio indicates the efficient management of the affairs of
business but the company has 6.52% positive so, here company
has efficient management of the business affairs
DEBT EQUITY RATIO( Ideal = below 2)
A lower debt to equity ratio usually implies a more financially
stable business. Companies with a higher debt to equity ratio are
considered more risky to creditors and investors than companies
with a lower ratio.
So, RELIANCE has 0.63 as debt equity ratio that reveals better
financial stability

25. FINDINGS AND
CONCLUSION
Reliance is one of the most profitable companies in India, the
largest publicly traded company in India by market
capitalization, and the largest company in India as measured
by revenue after recently surpassing the government-
controlled Indian Oil Corporation. On 10 September 2020,
Reliance Industries became the first Indian company to cross
$200 billion in market capitalization.
But RIL has a great future ahead as they are expanding their
business & doing partnership with top companies like
Amazon, Facebook ,etc
Thus ,investment in RIL is good decision in the nearby future

26. BIBLIOGRAPHY
www.ibeg.org
Reliance Industries Limited (ril.com)
Petroleum Products, Petrol, Aviation Fuel, Lubricants Oil, Lpg Gas |
Reliance Petroleum
Reliance Retail
Jio 4G LTE Network - Experience High Speed 4G Mobile Internet !