CHANDIGARH PROJECT REPORT ON RELIANCE INDUSTRIES Ltd: Ratio and Trend Analysis SUBMITTED BY: MOUKTAR IDRISS LIBAN

MOHAMED SALINDER ATMA SINGH. SA1

ACKNOWLEDGMENT

Heart full thanks to those who support and guide me. It often happens that one holds someone in high esteem and gropes for word to express his feelings of gratitude towards the other. We are deeply indebted to Mrs Monica for her guidance and for being our mentor and for giving his feelings a very patient hearing whenever I needed. She directly made a significant contribution and provided invaluable support for emergence of this project. We are also very thankful to IIPM Academics department which provided us the opportunity to undertake this project.

INDEX

CHAPTER 1 2 3 4 5 6 7 8 9 10

PARTICULARS INTRODUCTION OF COMPANT BASIC ACCOUTING TERMINOLOGIES OJECTIVE OF THE STUDY RESEARCH METHODOLOGY CONCEPTUAL DISCUSSION RATIOS ANALYSIS TREND ANALYSIS FINDINGS RECOMMENDATIOS AND SEGGESTION CONCLUSION

CHAPTER-1 INTRODUCTION OF COMPANY

INTRODUCTION
The Reliance Industries India group is India's largest private sector conglomerate. The Reliance Industries Limited was started by the legendary Late Dhirubhai H. Ambani. After a humble start in the late 1970's as a textile company its success skyrocketed and now covers almost all industry verticals.

Today, Reliance Industries generates revenues in excess of USD 22 billion and exports products worth USD 7 billion to more than 100 countries. The Reliance Industries Limited is a 'Fortune Global 500 company' and employs more than 25,000 professionals across the world. Reliance enjoys leadership in polyester yarn & fiber produce and is among the top 5 players in the world in major petrochemical products. Reliance Industries Limited holds largest Oil & Gas exploration area in India and has achieved 74 % success rate in terms of discoveries.

Reliance Industries India has been a pioneer in the equity culture cult and is highly respected for its corporate transparency, deep market penetration ability, innovations and above all for its ability to generate 'products & services' for all sections of the society.

Its guardianship for India Inc. stupendous growth has been felicitated with no of awards in areas like Quality, Energy Management, Health Safety & Environment, Exports and Retail & Franchising. It also bagged 'Golden Peacock Award' for Corporate Management in 2005-2006 and enjoys high corporate ranking in Fortune Global 500 Company.

HISTORY

From a humble textile company to Fortune 500 Company

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 28 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.

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.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.

GROUP PROFILE
Major Subsidiaries Reliance Petroleum Limited Reliance Netherlands BV (including Trevira) Reliance Retail Limited Ranger Farms Private Limited Retail Concepts and Services Private Limited Reliance Retail Insurance Broking Limited Reliance Dairy Foods Limited Reliance Retail Finance Limited Reliance Jamnagar Infrastructure Limited Reliance Haryana SEZ Limited Reliance Industrial Investment & Holdings Limited Reliance Ventures Limited Reliance Strategic Investments Limited Reliance Exploration & Production - DMCC Reliance Industries (Middle East) DMCC Reliance Global Management Services (P) Limited Major Associates Indian Petrochemicals Corporation Limited Reliance Industrial Infrastructure Limited

Vision & Mission

Mukesh Ambani, chairman of Reliance Industries Ltd, Indias largest private company, laid down a road map for business transformation and value creation for the company at its 35th annual general meeting. This has been a truly transformational year at Reliance Industries (RIL). The successful commissioning of the KG-D6 oil and gas production fields and the safe start-up of the world-class, complex refinery in the Special Economic Zone at Jamnagar catapults RIL into the league of integrated energy companies globally. RIL is now among the ten largest non-state owned refining companies and one of the largest deep water oil and gas operators in the world. Through these path-breaking initiatives, RIL is set to radically change Indias energy landscape. Gas production from KG-D6 will double Indias indigenous production while the new refinery will make India a major supplier of greenfuels to the world. Over the years, our initiatives have enabled the enrichment of millions of lives in India. We focused on improving efficiency, leveraging on the quality of our assets and remaining nimble. This reflects the strength of our business model, robustness of our systems and processes, farsighted planning, meticulous execution and above all, our indomitable will to succeed. While staying focused on our long-term strategy, we have remained committed to protecting our employees, ensuring their safety, supporting local communities and safeguarding the environment. Looking forward, we see exciting opportunities for growth in the energy sector. At RIL, we have always invested aggressively into businesses of the future. Our recent investments in the oil and gas and refining businesses have created a strong growth platform. RIL is on its way to becoming a competitive, integrated, global energy company.

AWARDS AND HONORS

Shri Mukesh Ambani was awarded the Defense India Excellence Award 2007. The Award is a salute to those who have made the country proud. Shri Mukesh Ambani was conferred the Leadership Award for Global Vision by the United States India Business Council. Shri Mukesh Ambani was elected to be a member of the Honorary Fellows of The Institution of Chemical Engineers, UK. Dr. R. A. Mashelkar received 'Foreign Fellow' from Australian Academy of Technological Sciences and Engineering (ATSE) in 2008. RIL continues to be featured, for the fifth consecutive year, in the Fortune Global 500 list of 'World's largest corporations'; ranking for 2009 is as follows: o Ranked 264th in terms of sales o Ranked 117th in terms of profits RIL won the Golden Peacock Global Award for Excellence in Corporate Governance for the year 2008. Jamnagar Manufacturing Division bagged the 'Refinery of the Year Award for 2008', for second successive year from 'Petroleum Federation of India'. Shri Mukesh Ambani received the American India Foundation's (AIF), USA, 'The 2008 Annual Spring Gala Award' in 2008.

 Shri Mukesh Ambani was conferred the Leadership Award for Global Vision by the United States India Business Council.

CHAPTER-2 BASIC ACCOUNTING TERMINOLOGIES

INTRODUCTION
Every human being consciously engages himself in some meaningful activity. Although the measure of success may vary in each case one has to be careful and cautious at every stage in his life. Bookkeeping and accountancy is a science, which has attracted the attention all such human activities. Accounting enables a person to assess the risk appropriate steps. Account an account denotes a summarized record of transactions pertaining to one person, one kind of asset, or one class of income, or one class of income or loss. Assets properties of every description owned by a person will be called assets for example land and building, plant and machinery, cash balance, bank balance etc. Bad debts which are irrecoverable and written off from debtors A/C as a loss are termed as bad debts. Casting means the totaling of the books of account casting has to be done of the ledger accounts and also of a journal. Creditor a creditor is a person to whom we owe something. He is the person to whom we have to pay.

Capital the dictionary meaning of the term capital is wealth capital is the total account invested in business the capital of a business is the claim of the owner to the business is the claim of the owner to the business. Debtor is person who owes something he is the person who has to pay to other person. Drawing is the total amount withdrawn by a trader from his business for meeting personal expenses. Trader becomes a debtor of business by the amount withdrawn by him from business for private purpose. Discount it is an allowance or a concession allowed by the receiver of benefit to the giver of benefit. It is normally allowed to the customers, debtors, and retailers etc. the discount may be classified in two ways. 1) Cash discount. 2) Trade discount. Cash discount it is discount allowed to customer as an inducement to make payment immediately. Cash discount is closely related to cash receipt and cash payment. When cash is received, discount is allowed is a loss to a business while cash discount received is a gain to him.

Trade discount it is an allowance made by a wholesaler to a retailer in order to enable the retailer to sell the articles at list prices and earn a reasonable margin of profit. The amount of trade discount is deducted from the invoice; therefore, it has no connection as to the receipt and payment of cash. Hence, trade discount does not appear in the books of accounts. Entry the term entry refers to the recording of a transaction in the books of account. It is the primary record of a transaction in the books called journal or any other subsidiary journal. Expenses the effort made by business to obtain the revenues are termed as expenses. It is the amount spent on manufacturing and selling of goods and services. Folio it means the page number of the book of original entry or of the ledger by writing folio i.e. page number, one can easily find out on what page the original entry is made and on what page the entry is made in the main book. Goods commodities in which a trader deals are called as goods. Insolvent a person is said to be insolvent when his liabilities are more than asset

Insolvency when the liabilities of a firm are greater than its assets, it is referred to as insolvency indicating the liabilities of a business to meet all its liabilities. Such a business firm is said insolvent. Journal is the book 0f accounts in which business transaction are first recorded. It is a book of prime entry or first entry. Liabilities debts owed by a person are called liabilities. Liabilities represent the total amount to creditors. Debts arise because, goods may be purchased out but payment may not be made at the time of purchasing the goods. Therefore the total amount payable to creditors will be the liabilities. Narration it is a brief explanation or description on to a journal entry it is given on the line just below the journal entry within the brackets. Posting transaction entered in the original books of entry are also to be recorded in the ledger on the basis of the entry made in the original book is called posting. Purchases the goods bought for resale or manufacture and resale are called purchases. Purchases may be classified as 1) Cash purchase 2) Credit purchase

Revenue it represent the accomplishment of the enterprise until the company has been successful in selling its products, no revenue is realized. Revenue is the amount that adds to the capital. Sales the goods sold by a business for cash or on credit are called sales. The sales may be classified as; 1) Cash sales 2) Credit sales Solvent a person is said to be solvent when his assets are equal to or more than his liabilities. Stock goods unsold lying with a business on any given date is called as stocks. Transactions a transaction are an exchange of money or moneys worth between two parties. It is dealing between two parties. It is dealing between two or more persons. The transactions are classified on the basis of exchange of goods and service they may be. 1) Barter transactions. 2) Monetary transactions. Monetary transactions are classified in the two types.

1) Cash transactions. 2) Credit transactions. Book keeping is defined as the process of analyzing, classifying and recording transaction in a systematic manner to provide the information about the financial affairs of the business concerns. Accounting is a wider concept, which includes book keeping accounting, is involved not only maintaining records, but also balancing of accounts, interrupting the balances, preparation of summaries, drawing conclusions from the summaries knowing the results of financial transactions etc. Classification of accounts. Accounts are classified in to four types 1) Personal accounts. 2) Real accounts. 3) Nominal accounts. Personal accounts DEBIT THE RECIVER AND CREDIT THE GIVER Real accounts DEBIT WHAT COMES IN AND CREDIT WHAT GOES OUT

Nominal accounts DEBIT EXPENSES AND LOSSES AND CREDIT GAINS OR INCOMES.

Journal is derived from the French word jour which means a day journal is the book of original entry or primary entry. It is a book of daily record first of all the business transactions are recorded in the journal and subsequently they are posted in the ledger. Ledger a group of accounts is known as ledger a ledger is the principle book of account a journal is meant for passing the entries of business transaction. A ledger is a bound book. It contains many pages, which are called folios. These pages are consecutively numbered. For each account a separate page is kept. Every ledger has an index. It is generally an alphabetic index one page is allotted for each alphabet. All the accounts commencing with that particular alphabet are indicated on that particular page only. The page number on which the particular account appears is shown in the index. Ledger posting After the transaction has been analyzed into its debit and credit elements in a journal, each such debit and credit elements must be transferred in a journal accounts. The process of transfer of entries from journal to ledger account is called ledger posting. Trial balance

After posting the transaction to respective ledger accounts they are balanced and then a trial balance is drawn. A trial balance is a statement, which shows the list of accounts showing debit balances and list of accounts showing credit balance. If double entry principles are strictly followed the total of the entire debit balances must agree with the total of all the credit balance. Trade discount The amount of trade discount is deducted from the bill itself. Therefore, a trade discount does not appear in the books of accounts. If a trade discount is given in the transaction, the amount of such a trade discount is deducted from the gross value of purchase and only the net value (arrived at after allowing a trade discount) is recorded in the purchase books. Debit note A debit note is sent to the supplier when the goods purchased from him are returned. A debit note is a statement sent by the buyer to the supplier stating the full details of the good returned. It is sent along with the goods. It intimates the supplier that his account has been debited by the value of the good returned to him. Credit note

A credit note is sent to the customers when we receive goods returned from them. It gives the full details of the good returned by the customer. Credit notes are generally is printed in red ink. Transaction is recorded in this book on the basis of credit notes. Trial balance The dictionary for accountants written is a list or abstract of the balance or of total debits and total credits of the accounts in a ledger, the purpose being to determine the equality of posted debits and credits and to establish a basic summary for financial statements Subsidiary books (sub division of journal) If all the business transaction were recorded in one and the same journal, the journal would be bulky and cumbersome. It would be very difficult to make clerks to work on the same journal at one and the same time. Instead of recording all the transaction in on and the same journal, they are recorded in separate journals meant for the purpose. Therefore, in order to meet the requirements of modern business, the original journal is divided into the following Purchase book

 Sales book Purchase return book Sales return book Cash book Bills receivable book. Bills payable book. Journal proper.

The final accounts are prepared to find out the profit or loss and to know the financial position of the business. These account consist of The trading account The profit and loss account Balance sheet

A trading account is prepared to find out the gross profit or gross loss in the business done during the year. The gross profit is the difference between the cost of goods sold and the sale proceed without any deduction of indirect expenses. Hence, in the trading account it is necessary to include all items of expenses directly affecting the cost of goods sold. The cost of

goods sold includes the purchase price of the good sold plus buying and bringing expenses and the expenses of conversion of raw material into saleable finished goods.

Profit and loss account is another summary account, which is prepared after preparation of trading account. Trading account does not disclose the net income or loss. There are other expenses in order to ascertain the profit or not loss.

A balance sheet is a statement of the financial position of a business on a given date. It is a snapshot of the financial condition of the business. The balance sheet is not account; it is only a statement showing asset and liabilities of the business. It is important to note that the balance sheet always balances. The total value of the assets is always equal to the capital and liabilities. We can define balance sheet as a statement of financial position of any economics unit as at a given moment of time, its assets, at cost, depreciated cost or another indicated value, its liabilities and its ownership equities

CHAPTER-3 OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY

To understand the information contained in financial statements with a view to know the strength or weakness of the firm and to make forecast about the future prospects of the firm and thereby enabling the financial analyst to take different decisions regarding the operating of the firm. To study the present financial system of Reliance Industries Ltd. To determine the profitability, liquidity ratios, solvency and investors ratios. To analyze the capital structure of the company with the help of leverage ratio To offer appropriate suggestions for the better performance of the organization

CHAPTER-4 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
1. Collection of Data Secondary data had been collected from the website www.moneycontrol.com company for the period starting from 2007 to 2011. 2. Organization of Data Data once collected the further processing is done, the data collected by us is carefully done through in a useful and relevant manner and properly organized. 3. Presentation of Data The data collection is of no use unless and until it is given in the presentable form. Thus after proper organization the data is given in presentable form with the complete details, with the help of bar diagram, pie carts etc. 4. Analysis of Data The data is carefully analyzed keeping in the consideration both the pros and cons for the purpose of arriving at concrete conclusion. 5. Interpretation of Data After careful analysis the data has been aptly interpreted in order to give concrete conclusion and proper recommendation. SCOPE/RELEVANCE OF STUDY The present project is relevant in the sense that it helps to judge the financial soundness of the firm through the analysis of the financial statement with various tools of analysis before commenting upon the financial health or weakness of an enterprise. It also helps in checking the financial health or weakness of an enterprise. Further, the project is useful to bring out the mystery behind the figure in financial statements.

CHAPTER-5 CONCEPTUAL DISCUSSION

INTRODUCTION
The study of financial statement is prepared for the purpose of presenting a periodical review or report by the management of and deal with the state of investment in business and result achieved during the period under review. They reflect the financial position and operating strengths or weakness of the concern by properly establishing relationship between the items of balance sheet and remove financial statements. Financial statement analysis can be undertaken either by the management of the firm or by outside parties the firm. The nature of analysis defers depending upon the purpose of the analysis. The analyst is able to say how well the firm could utilize the sources of the society in generating goods and services. Turnovers ratios are the best tools in deciding the aspects. Hence it is overall responsibility of the management to see that the resource of the firm is used most efficiently and effectively and that firms financial position is good. Financial statement analysis does what can be expected in future from the firm. Meaning of Financial Statement Financial statement refers to such statement which contains financial information about an enterprise. They report profitability and the financial position of the business at the end of accounting period. The team financial statement includes at least two statement which accountant prepares at the end of an accounting period. The two statements are: (i) Profit and loss Account or Income Statement (ii) Balance Sheet or Position Statement They provide some extremely useful information to the extent that balance sheet mirrors the financial position on particulars date in term of assets structure, liabilities and owners equity, and so on. Profit and loss account show the results of operations during a certain period of time in terms of the revenue obtained and cost incurring during the year. Thus the financial

statement provides a summarized view of financial position and operations of a firm. Meaning of Financial Analysis The first task of financial analysis is to select the information relevant to the decision under consideration to the total information contained in the financial statement. The second step is to arrange the information in a way to highlight significant relationship. The final step is interpretation and drawing of inference and conclusions. Financial statement is the process of selection, relation and evaluation Features of Financial Analysis To present a complex data contained in the financial statement in simple and understandable form. To classify the items contained in the financial statement inconvenient and rational group. To make comparison between various groups to draw various conclusions Purpose of Financial Statement Analysis Analysis of financial statements is an attempt to assess the efficiency and performance of an enterprise. Thus, the analysis and interpretation of financial statements is very essential to measure the efficiency, profitability, financial soundness and future prospects of the business units. Financial analysis serves the following purposes: 1. Measuring the profitability The main objective of a business is to earn a satisfactory return on the funds invested in it. Financial analysis helps in ascertaining whether adequate profits are being earned on the capital invested in the business or not. It also helps in knowing the capacity to pay the interest and dividend. 2. Indicating the trend of Achievements

Financial statements of the previous years can be compared and the trend regarding various expenses, purchases, sales, gross profits and net profit etc. can be ascertained. Value of assets and liabilities can be compared and the future prospects of the business can be envisaged. 3. Assessing the growth potential of the business The trend and other analysis of the business provide sufficient information indicating the growth potential of the business.

4. Comparative position in relation to other firms The purpose of financial statements analysis is to help the management to make a comparative study of the profitability of various firms engaged in similar businesses. Such comparison also helps the management to study the position of their firm in respect of sales, expenses, profitability and utilizing capital, etc. 5. Assess overall financial strength The purpose of financial analysis is to assess the financial strength of the business. Analysis also helps in taking decisions, whether funds required for the purchase of new machines and equipment are provided from internal sources of the business or not if yes, how much? and also to assess how much funds have been received from external sources. 6. Assess solvency of the firm The different tools of an analysis tell us whether the firm has sufficient funds to meet its short term and long term liabilities or not. Parties Interested Analysis of financial statements has become very significant due to widespread interest of various parties in the financial results of a business unit. The various parties interested in the analysis of financial statements are:

1. Investors: Shareholders or proprietors of the business are interested in the well-being of the business. They like to know the earning capacity of the business and its prospects of future growth. 2. Management: The management is interested in the financial position and performance of the enterprise as a whole and of its various divisions. It helps them in preparing budgets and assessing the performance of various departmental heads.

3. Trade unions: They are interested in financial statements for negotiating the wages or salaries or bonus agreement with the management. 4. Lenders: Lenders to the business like debenture holders, suppliers of loans and lease are interested to know short term as well as long term solvency position of the entity.

5. Suppliers and trade creditors: The suppliers and other creditors are interested to know about the solvency of the business i.e. the ability of the company to meet the debts as and when they fall due. 6. Tax authorities: Tax authorities are interested in financial statements for determining the tax liability. 7. Researchers: They are interested in financial statements in undertaking research work in business affairs and practices. 8. Employees: They are interested to know the growth of profit. As a result of which they can demand better remuneration and congenial working environment.

9. Government and their agencies: Government and their agencies need financial information to regulate the activities of the enterprises/industries and determine taxation policy. They suggest measures to formulate policies and regulations. 10. Stock exchange: The stock exchange members take interest in financial statements for the purpose of analysis because they provide useful financial information about companies. Procedure of Financial Statement Analysis The following procedure is adopted interpretation of financial statements: for the analysis and

1. T h e a n a l y s t s h o u l d a c q u a i n t h i m s e l f w i t h p r i n c i p l e s a n d p o s t u l a t e d o f accounting. He should know the plans and policies of the management so that he may be able to find out whether these plans are properly executed or not. 2. The extent of analysis should be determined so that the sphere of work may be decided. If the aim is find out. Earning capacity of the enterprise then analysis o f i nc o me s t a t e me nt w i l l b e u nd e rt a ke n. On t h e ot h e r h a nd , i f fi n a nc i a l position is to be studied then balance sheet analysis will be necessary.

3. The financial data be given in statement should be recognized and rearranged. It will involve the grouping similar data under same heads. Breaking down of individual components of statement according to nature. The data is reduced to a standard form.

4. A relationship is established among financial statements with the help of tools& techniques of analysis such as ratios, trends, common size, fund flow etc.

5. The information is interpreted in a simple and understandable way. The significance and utility of financial data is explained for help in decision making. 6. The conclusions drawn from interpretation are presented to the management in the form of reports. Types of Financial Analysis On the basis of material used: External Analysis: this analysis of financial statement is carried out on the basis of published information i.e., information made available in the annual report of enterprise or other such available made by those who do not have access to the detailed accounting records of the company i.e., banks, creditors, public. Internal Analysis: Internal analysis is based on detailed information available within the enterprise, which is not available to outsiders. It is carried on behalf of the management for purposes of providing necessary information for decision making. According to objectives of Analysis Short term analysis, it is mainly concerned with the working capital analysis. The current assets are analyzed and liquidity (cash position) is determined. Long term analysis, in the long term a company must earn a minimum amount sufficient to maintain a reasonable rate of return on the investment to provide for the necessary growth and development of the company and to meet the cost of capital.

According to modus operandi of analysis Horizontal analysis, analysis of financial statement involves making comparisons and establishing relationship among related items. Based on financial statement of an enterprise for a numbers of years or financial statements of different enterprises for the same year such analysis is called horizontal analysis which may take the following two forms: Comparative financial statements analysis Trend analysis Vertical analysis, it is analysis of financial data based on relationship among items in a single period of financial statement. Relationship of various items may be established from one year balance sheet. For example, various assets can be expressed as percentage of total assets. Statements containing such analysis are called common size statements. The common size profits and loss account is more useful in analyzing operating results and costs during the year. Tools for Financial Analysis: Comparative statements Common size statements Trend analysis Ratio Analysis Statement of change in working capital Fund flow analysis Cash flow analysis

CHAPTER-6 RATIOS ANALYSIS

A- LIQUIDITY RATIO The importance of adequate liquidity in the sense of the ability of a firm to meet current/short-term obligations when they become due for payment can hardly be overstressed. Liquidity is a prerequisite for the very survival of a firm. The short-term creditors of the firm are interested in the short term solvency or liquidity of the firm. But liquidity implies, from the viewpoint of utilization of the funds of the firm that funds are idle or they earn very little. A proper balance between the two contradictory requirements, i.e., liquidity and profitability, is required for efficient financial management. The liquidity ratios measure the ability of the firm to meet its short term obligations and reflect the short term financial strength/solvency of a firm. The ratios which indicate the liquidity of a firm are: Current ratio Acid-Test/Quick Ratio 1. Current Ratio It may be defined as the relationship between the current assets and current liabilities. This ratio is also known as working capital ratio and is a measure of general Liquidity of the firm for a short period of time. A ratio of 2: 1 is considered satisfactory as a rule of thumb. Formula: Current ratio= current assets/current liabilities Components of current ratio: Current assets: Cash in Hand, Cash at Bank, bill receivable, inventories, work in progress, marketable securities, short term investments, sundry debtors and prepaid expenses. Current liabilities: Out-standing or accrued expenses, bank overdraft, bills payable, short term advances, sundry creditors, dividend payable and income tax payable.

2.

Quick or Acid Test or Liquid Ratio

It may be defined as the relationship between quick assets and current Liabilities. Quick assets include cash in hand and at bank and marketable securities or temporary investments. A ratio of 1: 1 is considered to be good. Such a ratio will imply that the firm has enough Liquid assets to meet all current Liabilities of the firm. Components of quick/ liquid ratio Quick assets: cash in hand, cash at bank, bills receivables, sundry debtors, marketable securities and temporary investments. Currents liabilities: Out-standing or accrued expenses, bank overdraft, bills payable, short term advances, sundry creditors, dividend payable and income tax payable. Formula: Quick ratio= Quick assets/ current liabilities 3. Debtors turnover ratio This ratio indicates the number of time the debtors turnover each year. The higher the value of debtors turnover, the more efficient is the management of credit. The analysis of the debtors turnover ratios supplements the information regarding the liquidity of one item of current assets of the firm. The ratio measures how rapidly receivables are collected. A high ratio is indicative of shorter time lag between credit sales and cash collection. A low shows that debts are not being collected rapidly. Formula: Debtor turnover ratio= Total Sales/ Debtor (Inclusive of Bills Receivables)

4. Inventory turnover ratio The cost of goods sold means sales minus gross profit, the average inventory refers to the simple average of the opening and closing inventory. The ratio indicates how fast inventory is sold. A high ratio is good from the view point of liquidity and vice versa. A low ratio would signify that inventory does not sell fast and stays on the shelf or in the warehouse for a long time. Formula: Inventory Turnover Ratio= Cost of Goods Sold/Average of Inventory

Table 1 Liquidity Analysis Particulars Mar '11 Mar '10 Mar '09 Current 1.22 1.11 1.08 ratio Quick 1.01 0.76 0.90 ratio Debtor 17.05 23.67 26.29 turnover times times times ratio Inventory 12.92 turnover 9.59 times 8.29 times times ratio Mar '08 1.01 0.94 26.87 times 10.57 times Mar '07 0.77 0.69 28.29 times 10.65 times

Graph-1 Current ratio and Quick ratio

1.4 1.2 1 0.8 Series1 0.6 0.4 0.2 0 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Series2

Graph-2 Debtor Turnover ratio and Inventory Turnover ratio

30 25 20 15 10 5 0 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Series1 Series2

Interpretation: Current ratio of the company is satisfactory. In the last Five years it is increasing by every year. As per the Rule Of Thumb, it should be in the ratio of 2:1 which shows the sound liquidity position of the firm. In reliance Industries Ltd, the current ratio was 0.77 in 2007 and then it increased to 1.22:1 in 2011. It means that for one rupee of current liabilities, the current assets are 1.22 rupee is available to them. In other word the current assets are 1.22 times the current liabilities. In all the 5 years under study the current ratio is improving. The consistency increase in the value of current assets shows the increase in the ability of the company to meets its obligations and therefore from the point of view of creditors the company is riskless. Thus the current ratio throws light on the companys ability to pay its current liabilities out of its current assets. The reliance Industries ltd has a good current ratio. The liquid or quick ratio indicates the liquid financial position of an enterprise. The liquid ratio of Reliance Industries Ltd has increased from 0.69 to 1.01 which shows that the company follows low liquidity position to achieve high profitability. This indicates that the dependence

on the long term liabilities and creditors are more and the company is following an aggressive working capital policy.

There is not banker rule of thumb but high debtor turnover ratio indicates more efficient management of debtor. Similarly, low debtor turnover implies inefficient management of debtors/sales and less liquid debtor. It throws light on the collection and credit policies of the firm. This ratio is dependent on the credit policy of the company and credit period allowed to the customer. This ratio tells us that how much time the debtors should be converted into cash. The debtor turnover ratio of the company was higher in the year 2007 (28.29 times), this indicates a shorter time-lag between credit sales and cash collection. The debtor turnover ratio has decreased from the year 2007(28.29 times) to 2011(17.05), that shows a lower conversion of debtors into cash and a negative liquid position.

The inventory turnover ratio shows the relationship between sales and stock, it means how stock is being turned over into sales. The inventory turnover ratio in 2007 was 10.65 times which indicates that the stock is being turned into sales 10.65 times during the year. The turnover cycle makes 10.65 rounds during the year. It helps to work out the stock holding period, it means the stock turnover ratio is 10.65 times then the stock holding period is 1.13(12/10.65). This indicates that it takes 1.13 months for stock to be sold out after it is produced. The turnover ratio of the company has decreased from 10.65(in 2007) to 9.59(in 2011), which shows that the stock of the company is not moving fast as before.

B- LEVERAGE/ CAPITAL STRUCTURE RATIO The second category of financial ratios is leverage or capital structure ratios. The long-term creditor would judge the soundness of the firm on the basis of the long term financial strength measured in terms of its ability to pay the interest regularly as well as the installment of the principal on due date or in lump sum at the time of majority. 1. Debt Equity Ratio A measure of companys financial leverage calculated by dividing its total liabilities or long term debts by stockholders equity. It indicates what proportion of equity and debt the company is using to finance its assets. Debt means: long term loans i.e. Debenture, loan from long-term financial institutions. Equity means: Shareholders funds i.e. preference share capital, equity share capital, reserves and surplus, less debit balance of Profit and Loss Account. Formula: Debt equity ratio= Total long term Debt/ Equity or Total shareholders Fund.

2. Interest coverage ratio: It is also known as time-interest-earned ratio. This ratio measures the debt servicing capacity of a firm insofar as fixed interest on long term loan is concerned. Formula: Interest coverage = EBIT/ INTEREST It should be noted that this ratio uses the concept of net profit before tax because interest is a tax deductible so that tax is calculated after paying interest on long term loan. This ratio, as the name suggests, shows how many

times the interest charges are covered by the EBIT out of which they will be paid. Table-2 Leverage or Capital structure analysis

Particulars Mar '11 Debt equity 0.46 ratios Interest coverage 11.66 ratio

Mar '10 0.49 10.97

Mar '09 0.65 11.85

Mar '08 0.46 17.05

Mar '07 0.45 13.51

Graph 3 Debt Equity and Interest Coverage ratio

18 16 14 12 10 8 6 4 2 0 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Series1 Series2

Interpretation: The debt equity ratio is important tool of financial analysis to appraise the financial structure of the company. It expresses the relation between the external equities and internal equities. This ratio is very important from the point of view of creditors and owners. Interpretation of this ratio depends upon the financial position. A very high ratio is unfavorable from the point of view of the firm as increase in debts shows that company is being aggressive in using external debts in order to increase its growth. The rate of debt equity ratio is increased from 0.45(in 2007) to 0.65(in 2009). This shows that with the increase in debt, the shareholders fund also increased. This shows long term capital structure of the company is sound for the three first years. For the 2010 there was a decrease in debt as well as in equity that is why the rate of debt equity ratio decreased. For 2011, we have debt equity ratio is 0.46, which is viewed as favorable long term creditors point of view.

From the point of view of the creditor, the larger coverage, the greater is the ability of the firm to handle fixed charge liability and the more assured is the payment of the interest to the creditor. However, too high a ratio may imply unused debt capacity. It contrast, a low ratio it is danger signal that the firm is using excessive debt and does not have the ability to offer assured payment of interest to the creditors.

C- SOLVENCY RATIO

The long term lenders/creditors would judge the soundness of a firm on the basis of the long term financial strength measured in term of its ability to pay the interest regularly as well as repay the installment of the principal on due dates or in one lump sum at the time of maturity. The long term solvency of the firm can be examined by using leverage or capital structure ratios. The leverage or capital structure ratios may be defined as financial ratios which throw light on the long term solvency of a firm as reflected in its ability to assure the long term lenders with regard to (i) periodic payment of interest during the period of the loan and (ii) repayment of principal on maturity or in predetermined installements at due dates. There are, thus, two aspects of the long term solvency of the firm: (i) ability to repay the principal when due. Accordingly, there are two different, but mutually dependent and interrelated, type of leverage ratios. First, ratios which are based on the relationship between borrowed funds and owners capital. Any of several formulas used to gauge a companys ability to meet its long term obligations. It is calculated as total bet worth divided by total assets. Formula: Solvency ratio= Net worth/ Total Liabilities

Table-3 Solvency Analysis Particular s Net worth Total liabilities Solvency ratio Mar 2011 151,540.3 2 218,937.0 0 0.69 Mar 2010 137,170.6 1 199,665.3 0 0.68 Mar 2009 126,372.9 7 200,277.4 5 0.63 Mar 2008 81,448.60 117,928.2 8 0.69 Mar 2007 63,967.1 3 91,792.8 6 0.69

Graph 4 Solvency Ratio

0.7 0.69 0.68 0.67 0.66 0.65 0.64 0.63 0.62 0.61 0.6 Mar 2011 Mar 2010 Mar 2009 Mar 2008 Mar 2007 Series1

Interpretation: Higher the ratio more satisfactory or stable is the long term solvency position. The ratio of Reliance Industries Ltd is much more satisfactory, as the total liabilities have increased with a greater margin than the increase we can see in the net worth.

D- PROFITABILITY RATIOS 1. Gross Profit Margin This ratio shows the relationship of the sales with the direct costs such as purchases, manufacturing cost, etc. Thus is very important. Gross profit is the result of the relationship between prices, sales volume and costs. The gross profit represents the limit beyond which fall in sales are outside the tolerance limit. Gross profit ratio is also used in determining the extent of loss caused by theft, spoilage, damage and so on. A high ratio is a sign of good management as it implies that the cost of production of the firm is relatively low. It might be due to higher sales or higher sales price or low production cost. Nevertheless, a very high and rising gross margin may also be result of unsatisfactory basis of valuation of stock, that is, over evaluation of closing stock and or under evaluation of opening stock. A relatively low gross margin is a danger signal. Warranting a careful and detailed analysis of the factors responsible for it. It might be due to (i) high cost of production, (ii) inefficient utilization of resources, current as well as fixed assets, and (iii) a low selling price resulting from sever competition, inferior quality of product, lack of demand and so on. A thorough investigation of the factors is required. Formula: Gross profit margin = Gross profit/ sales *100 2. Net profit margin

It is also known as net margin. It measures the relationship between net profit and sales of a firm. Depending on the concept of net profit, this ratio can be calculated into two ways: Operating profit ratio = Earnings before interest and taxes (EBIT)/ Sales Net profit ratio = Earnings after interest and taxes (EAT)/ Sales A high net profit margin would ensure adequate return to the owner as well as enable a firm to withstand adverse economic condition when selling price is declining, cost of production is raising and demand for the product is falling. A low net profit margin has the opposite implication.

Table-4 Profitability Analysis Particulars Mar '11 Gross profit 9.76 ratio Net profit 8.08 ratio Mar '10 10.13 8.35 Mar '09 13.35 10.65 Mar '08 13.14 14.45 Mar '07 13.95 10.64

Graph 5 Gross Profit and Net Profit

16 14 12 10 8 6 4 2 0 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Series1 Series2

Interpretation: For the three first years (2007 to 2009), the company shows a higher gross profit ratio to sales which is in turn a sign of a good management as it implies that the cost of the production of the firm was relatively low. In controversy, the Gross Profit Ratio is decreased due to high cost of production reflecting acquisition of raw materials and other cost inputs in the year 2010 to 2011. The net profit has observed that from 2007 to 2008, the net profit is increased and it decreased in the years 2009, 2010 and 2011. Profitability ratio of company shows considerable in second year (2008) and decreased in the last in three last years (2009, 2010 and 2011). At the same time company has been successful in controlling the expenses. It is a clear index of cost control.

E- PROFITABILITY RATIOS RELATED TO INVESTMENTS. 1. Return on capital employed (ROCE) Return on capital employed establishes the relationship between profits and the capital employed. It is the primary ratio and most widely used to measure the overall profitability and efficiency of a business. The term capital employed refers to long term funds supplied by the creditor and owners of the firm. It can be computed in the following way: Formula: ROCE= Net profit after tax or EBIT/ Average total capital employed*100 Table-5 Profitability Ratios Related to Investments analysis Particulars Mar '11 ROCE 12.60 Mar '10 11.35 Mar '09 10.96 Mar '08 15.68 Mar '07 18.00

Graph 6 ROCE
20 18 16 14 12 10 8 6 4 2 0 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Series1

Interpretation:

The return on capital employed shows the relationship between profits and investment. Its purpose is to measure the overall profitability from the total funds made available by the owner and lender. The return on capital employed of 18 indicate the net return of 18 is earned on a capital employed of Rs 100. This amount of Rs 18 is available to take care of interest, taxes and appropriation. The return of capital employed is show mix-trend i.e. it decreased in 2008 and 2009, then increase in 2010 and finaly increase in 2011. In 2007 It is highest that indicates a very hight profitability on each rupees of investment and has great scope to attract large amount of fresh fund.

F- MARKET TEST OR VALUATION RATIOS 1. Dividend Pay-out Ratio Dividend Pay-out ratio is calculated to find the extent to which earnings per share have been retained in the business. It is important ratio because ploughing back of profits enables a company to grow and pay more dividends in future. Formula: Dividends Pay-Out Ratio= Dividend per Equity share/Earning per share. 2. Earning per shares Formula: Earning per shares= net profit after tax- preference dividend/ number of equity shares.

Table-6 Market Test or Valuation Analysis Particulars Mar '11 Dividend Pay-out 13.66 ratio Earning per 61.97 shares Mar '10 14.97 49.64 Mar '09 14.49 97.28 Mar '08 9.80 133.86 Mar '07 13.75 85.71

Graph 7 Dividend Pay-out ratio and Earning per share

160 140 120 100 80 60 40 20 0 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Series1 Series2

Interpretation: The company earned profit in all five years. So it is declared dividend in all five years. The dividend pay-out ratio in the years of 2007, 2008, 2009 are 13.75, 9.80 and 14.49 respectively. In the year 2010, the company has declared the dividend 9.8 because the company has not earned more profit in 2008. Earning per shares is calculated to find out overall profitability of the company, earning per share represent the earning of the company whether or net dividends are declared. The earning per share in 2011 is 61.97 means shareholders get rupees for each share of rupees 10. In others word the shareholders earned rupees 61.97 per share. The net profit after tax of the company is increasing in all years except 2009. Therefore the shareholders earning per share is increased continuously from 2007 to 2008 by 85.1% to 133.86 and decreased from 2009 to 2011 by 97.28 to 61.97.

This shows it is continuous capital appreciation per unit share for first year and capital depreciation per unit share for consecutives three last years.

CHAPTER 7 TREND ANALYSIS

TREND ANALYSIS
Trend analysis is a form of comparative analysis that is often employed to identify current and future movements of an investment or group of investment. The process may involve comparing past and current financial data in order to project how long the current trend will continue. In other words, trend analysis is the study of same group of items, computed items in two or more than two balance sheets for the company. Trend analysis is help to predict the future investment/ decision about the company. Here we are comparing few particulars of the balance sheets. We took 2007 financial year as a base to calculate trend percentages.

1. Shareholders Funds Table-7 Shareholders Funds Particulars Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Shareholders 63,967.13 81,448.60 126,372.97 137,170.61 151,540.32 fund Trend Analysis In Percentage Particulars Mar 2007 Shareholders 100 fund Mar 2008 127 Mar 2009 197 Mar 2010 214 Mar 2011 237

Graph 8 Trend Analysis In Shareholders Funds

250

200

150 Series1 100

50

0 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011

As per table-7 and graph 8, it is found that shareholder fund has increased by 137% during the span of 5 years i.e. from Rs. 63,967.13 crore in 2007 to Rs 151,540.32 in 2011. 2. Loan Funds Table-8 Loan Funds Particulars Loan fund Mar 2007 27,825.73 Mar 2008 36,479.68 Mar 2009 73,904.48 Mar 2010 62,494.69 Mar 2011 67,396.68

Trend Analysis In Percentage Particulars Loan fund Mar 2007 100 Mar 2008 131 Mar 2009 265 Mar 2010 224 Mar 2011 242

Graph 9 Trend Analyis In Loan Funds

300 250 200 150 100 50 0 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011

Series1

As per table-8 and graph 9, it is found that loan funds has dramatically increased by 165% during the three first years from Rs. 27,825.73 crore in 2007 to Rs. 73,904.48 in 2009, then it decreased by 23% from Rs 73,904.48 in 2009 to Rs. 67,396.68 in 2011. 3. Net Block Table-9 Net Block Particulars Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Net Block 63,660.46 61,883.63 100,343.06 153,259.89 142,706.47 Trend Analysis In Percentage Particulars Net Block Mar 2007 100 Mar 2008 97 Mar 2009 158 Mar 2010 241 Mar 2011 224

Graph-10 Trend Analysis In Net Block

300 250 200 150 100 50 0 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011

Series1

As per table-9 and graph 10, it is found that Net block has increased by 141% during the three first years from Rs. 63,660.46 crore in 2007 to Rs. 142,706.47 in 2010, then it decreased by 17% in 2011. 4. Current Assets, Loans and Advances Table-10 Current Assets/ Loans and Advances Particulars Mar 2007 Mar 2008 Current Assets and 30,210.99 44,743.86 Loans and Advances Trend Analysis In Percentage Particulars Mar 2007 Current Assets and 100 Loans and Advances Mar 2008 148 Mar 2009 56,298.09 Mar 2010 66,595.32 Mar 2011 96,355.05

Mar 2009 186

Mar 2010 220

Mar 2011 318

Graph 11

Trend Analysis In Current Assets/ Loans and Advances1

350 300 250 200 150 100 50 0 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Series1

As per the table-10 and Graph 11, it shows current assets and loans have increased by 218% during the span of 5 years from Rs 30,210.99 crore in 2007 to 96,355.05 crore in 2011. 5. Operating profit Table-11 Operating Profit Particulars Mar 2007 Mar 2008 Operating 20,578.67 22,335.59 Profit Trend Analysis In Percentage Particulars Operating Profit Mar 2007 100 Mar 2008 108 Mar 2009 24,372.35 Mar 2010 30,252.57 Mar 2011 38,004.39

Mar 2009 118

Mar 2010 147

Mar 2011 185

Graph 12 Trend Analysis In Operating Profit

200 180 160 140 120 100 80 60 40 20 0 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Series1

As per the table-11 and Graph 12, the operating profit has increased by 85% during the span of 5 years from Rs 20,578.67 crore in 2007 to 38,004.39 crore in 2011.

CHAPTER-8 FINDINGS

FINDINGS 1. The current ratio has shown non fluctuating trend as 1.22, 1.11, 1.08, 1.01 and 0.77. 2. The quick ratio is also in no fluctuating trend throughout the period 2007-2011. The company believes in high profitability and low liquidity position. 3. The debtor turnover ratio has decreased during the span of years from 28.29 in 2007 to 17.05 in the year 2011. 4. The inventory turnover ratio showed fluctuation trend throughout the priod 2007-2011. This ratio has decreased from 10.65 times in the year 2007 to 10.57 times in 2008, then it increased in 2009 to 12.92 times and decreased in two last year(2010 and 2011). The current ratio is 9.59 times. 5. The gross profit ratio is constant throughout the three first years. It decreased in the current year compared with the previous year from 10.13 to 9.76 6. The net profit margin is also decreased in the current year 2011 compared with the previous year 2010 from 8.35 to 8.08. 7. The return on capital employed is decreased in the year 2007-2009 from 18 to 10.96 while it increased in the current year compared with the previous year from 11.35 to 12.60. 8. Dividend pay-out ratio is maximum in the year 2010 for 14.97% and minimum in the year 2008 for 9.80. 9. The earning per share is maximum in the year 2008 for 133.86 and minimum in the year 2010 for 49.64.

CHAPTER-9 RECOMMENDATIONS AND SUGGESTIONS

RECOMMENDATIONS AND SUGGESTIONS

1. Liquidity refers the ability of the concern to meet its current obligations as and when these become due. The company should improve its liquid position. 2. The company should make the balance between liquidity and solvency position. 3. The profit ratio is decreased in current year so company should pay attention to this because profit making is the prime objective of every business. 4. The long term financial position of the company is very good but it should pay an attention to short term solvency of the company.

CHAPTER-10 CONCLUSION

CONCLUSION
The companys overall position is at very good position. The company achieves sufficient profit in past five years. The long term solvency position of the company is very good. The company maintains low liquidity to achieve high profitability. The company the profit of the company decreased in the last year due to maintaining the comparatively high liquidity.

Annexure
Annexe-1: Profit and Loss Account
Consolidated Profit & Loss account ------------------- in Rs. Cr. ------------------Mar '11 Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses Mar '10 Mar '09 Mar '08 Mar '07

276,371.78 10,655.98 265,715.80 2,598.47 4,458.04 272,772.31 212,677.44 2,834.33 3,324.26 3,362.83 8,330.21 1,670.64 -30.26 232,169.45

211,727.07 8,356.50 203,370.57 11,449.61 6,034.99 220,855.17 164,277.25 3,140.75 2,790.87 2,466.92 6,746.68 948.44 -1,217.92 179,152.99

155,788.51 4,452.97 151,335.54 1,295.14 2,269.54 154,900.22 117,294.00 3,848.91 3,017.57 1,857.13 5,347.05 1,248.52 -3,380.45 129,232.73

143,004.98 5,495.54 137,509.44 6,946.78 1,533.93 145,990.15 103,564.07 2,108.38 2,738.16 2,028.01 5,864.19 613.77 -208.80 116,707.78

120,431.10 6,654.68 113,776.42 322.96 696.92 114,796.30 81,815.73 2,262.95 2,590.89 1,422.48 5,501.33 418.72 -117.43 93,894.67

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items

38,004.39 40,602.86 2,413.91 38,188.95 14,120.76 0.00 24,068.19 -0.33

30,252.57 41,702.18 2,063.31 39,638.87 11,008.82 0.00 28,630.05 -0.23

24,372.35 25,667.49 2,133.94 23,533.55 5,725.44 0.00 17,808.11 2.58

22,335.59 29,282.37 1,257.32 28,025.05 5,004.20 0.00 23,020.85 56.75

20,578.67 20,901.63 1,344.95 19,556.68 4,899.45 0.00 14,657.23 -538.35

PBT (Post Items) Tax

Extra-ord

24,067.86 4,796.67 19,271.52 -22.16

28,629.82 4,269.49 24,423.58 -79.56 0.00

17,810.69 2,932.26 14,950.31 -18.41 0.00

23,077.60 3,495.59 19,523.24 1.86 0.00

14,118.88 2,580.57 12,074.74 -0.09 0.00

Reported Net Profit Minority Interest

Share Of P/L Of Associates 0.00 Net P/L After Minority Interest & Share Of 19,293.68 Associates Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax 19,492.01 0.00 2,384.99 386.90

15,834.55

14,894.26

14,789.90

12,076.75

14,875.74 0.00 2,084.67 346.24

11,938.73 0.00 1,897.05 322.40

13,143.71 0.00 1,631.24 277.23

12,078.94 0.00 1,440.45 202.02

Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 29,810.19 64.65 0.00 496.47 29,780.20 82.01 0.00 441.87 13,749.46 108.73 0.00 792.38 14,536.49 134.31 0.00 568.36 13,935.08 86.65 0.00 467.67

Annexe-2: Balance sheet

Balance Sheet ------------------- in Rs. Cr. ------------------Mar '11 Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Mar '10 Mar '09 Mar '08 Mar '07

3,273.37 3,273.37 0.00 0.00 142,799.95 5,467.00 151,540.32 10,571.21 56,825.47 67,396.68 218,937.00

3,270.37 3,270.37 0.00 0.00 125,095.97 8,804.27 137,170.61 11,670.50 50,824.19 62,494.69 199,665.30

1,573.53 1,573.53 69.25 0.00 112,945.44 11,784.75 126,372.97 10,697.92 63,206.56 73,904.48 200,277.45

1,453.39 1,453.39 1,682.40 0.00 77,441.55 871.26 81,448.60 6,600.17 29,879.51 36,479.68 117,928.28

1,393.21 1,393.21 60.14 0.00 59,861.81 2,651.97 63,967.13 9,569.12 18,256.61 27,825.73 91,792.86

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

221,251.97 78,545.50 142,706.47 12,819.56 33,019.27 29,825.38 17,441.94 604.57 47,871.89 17,320.60 31,162.56 96,355.05 0.00 61,399.87 4,563.48 65,963.35 30,391.70 0.00 218,937.00 41,825.13 446.25

215,864.71 62,604.82 153,259.89 12,138.82 19,255.35 26,981.62 11,660.21 362.36 39,004.19 10,517.57 17,073.56 66,595.32 0.00 48,018.65 3,565.43 51,584.08 15,011.24 0.00 199,665.30 25,531.21 392.51

149,628.70 49,285.64 100,343.06 69,043.83 20,268.18 14,836.72 4,571.38 500.13 19,908.23 13,375.15 23,014.71 56,298.09 0.00 42,664.81 3,010.90 45,675.71 10,622.38 0.00 200,277.45 36,432.69 727.66

104,229.10 42,345.47 61,883.63 23,005.84 20,516.11 14,247.54 6,227.58 217.79 20,692.91 18,441.20 5,609.75 44,743.86 0.00 29,228.54 2,992.62 32,221.16 12,522.70 0.00 117,928.28 37,157.61 542.74

99,532.77 35,872.31 63,660.46 7,528.13 16,251.34 12,136.51 3,732.42 308.35 16,177.28 12,506.71 1,527.00 30,210.99 0.00 24,145.19 1,712.87 25,858.06 4,352.93 0.00 91,792.86 46,767.18 439.57

Annexe-3: Cash Flow Statement

Cash Flow

------------------- in Rs. Cr. ------------------Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 25242.2 4 20547.4 4 18433.2 3 23010.1 4 14520.4 7

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increas e In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

33280.52 20490.22 18245.86 17426.74 16870.55 20332.88 18204.50 24084.20 23955.08 18567.01 724.57 23732.58 8973.04 10999.60 17894.2 4 306.08

13672.2 1

-8713.88

2444.70

-1390.38

13462.65 22176.53 4282.29

1835.35

3225.73 1835.35

27134.86 13462.65 22176.53 4280.05