TABLE OF CONTENTS
1.
INTRODUCTION…………………………………………………………………………
……………………………3
1.1 Background of Reliance Industry
Ltd…………………………………………………………3
1.2 Financial
Highlights…………………………………………………………………………………..3
1.3 Objectives of the
Assignment……………………………………………………………………3
2. FINANCIAL RATIO
ANALYSIS…………………………………………………………………………………
….4
2.1 Profitability
………………………………………………………………………………………………4
2.2 Liquidity
………………………………………………………………………………………………
……7
2.3
Gearing………………………………………………………………………………………
…………….10
2.4
Investment……………………………………………………………………………………
…………..11
3. SWOT ANALYSIS
………………………………………………………………………………………………
……..13
4. CONCLUSIONS AND
RECOMMENDATIONS……………………………………………………………..15
5. REFERENCES
………………………………………………………………………………………………
…………..15
6.
APPENDICES………………………………………………………………………………
……………………………16
6.1 Appendix A- Balance Sheet (2011 to 2013)
……………………………………………….16
6.2 Appendix B-Profit and loss (2011 to 2013)
………………………………………………..18
6.3 Appendix C-Workings for financial
ratio……………………………………………………21
INTRODUCTION
Background of Reliance Industries Limited
Reliance Industries Limited (RIL) is a conglomerate holding Multi National Company
headquartered in Mumbai, Maharashtra, India. Reliance Industries Limited company
activities are Production and Exploration of Oil and Gas, Textiles, Retail, Petrochemicals
(Plastics, chemicals, polyester) and Petroleum refining. Reliance Industry Limited got
listed in SGX during the year 2004.
As of 2013, RIL is ranked 107 under Fortune Global 500 list of world’s biggest
corporations. The company has 123 subsidiary and 10 associate companies. RIL’s
shareholders are approx. 3 million people. Chairman family i.e. Ambani family holds
45.34% of the total shares.
Financial Highlights
In 2013, Reliance Industries Limited achieved record turnover of $ 68.4 billion and also
achieved highest exports rate ever of $44.1 billion
Total assets value has touched record high $ 58,674 million.
Its net profit value as of 2013 has seen drastic increase when compared with 2012 and
2011 which is $3,869 million.
Revenue has grown 42% on a year on year basis.
Number of new stores included is 184 across the globe in 2013 and hence the total number
of stores is 1,466.
Share of production in 2012 saw an increase of 166% compared to previous year.
The company is under the list of top 100 companies in the world ranking which is 99th in
terms of revenue and 130th in terms of profit in 2012. (Reliance, n.d.)
Statement by RIL’s Chairman to the press and its Shareholders (2013)
Mukesh D Ambani, the chairman and managing director of Reliance Industries Limited
has said that despite global financial challenges due to Eurozone, the company continued
to grow to increase its shareholders wealth and stated all financial highlights that occurred
during FY 2012-2013. He also stated the future investments the company is willing to
undertake and assured of good returns for its investors. (Limited, 2013)
OBJECTIVES OF THE ASSIGNMENT
Main objective is to analysis the company’s capability and risk associated with it to
determine suitability for the investment. Financial analysis for the past performance of the
