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    Ratio Analysis: Submitted To. Prof Lakshmi Chand Submitted By: Rahul Sebastian Submitted On: 10/01/2011

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    Thomas Rajan
    The document provides ratio analysis for Reliance Industries' petrochemicals division for the year ending March 2009. Some key ratios calculated include: 1. The current ratio was 1.23, indicating current assets can cover current liabilities. 2. The acid test ratio increased to 0.78, showing an improved liquid financial position. 3. Inventory turnover was 3.73, meaning inventory had a fast turnover rate relative to sales. 4. The debt-to-equity ratio was 0.59, suggesting the company's long-term capital structure is sound with increasing debt and shareholder funds. 5. Gross profit ratio was 18.14%, providing a measure of profit

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    Ratio Analysis: Submitted To. Prof Lakshmi Chand Submitted By: Rahul Sebastian Submitted On: 10/01/2011

    Uploaded by

    Thomas Rajan
    115 views6 pages
    The document provides ratio analysis for Reliance Industries' petrochemicals division for the year ending March 2009. Some key ratios calculated include: 1. The current ratio was 1.23, indicating current assets can cover current liabilities. 2. The acid test ratio increased to 0.78, showing an improved liquid financial position. 3. Inventory turnover was 3.73, meaning inventory had a fast turnover rate relative to sales. 4. The debt-to-equity ratio was 0.59, suggesting the company's long-term capital structure is sound with increasing debt and shareholder funds. 5. Gross profit ratio was 18.14%, providing a measure of profit

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    Ratio Analysis

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    The document provides ratio analysis for Reliance Industries' petrochemicals division for the year ending March 2009. Some key ratios calculated include: 1. The current ratio was 1.23, indicating current assets can cover current liabilities. 2. The acid test ratio increased to 0.78, showing an improved liquid financial position. 3. Inventory turnover was 3.73, meaning inventory had a fast turnover rate relative to sales. 4. The debt-to-equity ratio was 0.59, suggesting the company's long-term capital structure is sound with increasing debt and shareholder funds. 5. Gross profit ratio was 18.14%, providing a measure of profit

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    115 views6 pages

    Ratio Analysis: Submitted To. Prof Lakshmi Chand Submitted By: Rahul Sebastian Submitted On: 10/01/2011

    Uploaded by

    Thomas Rajan
    The document provides ratio analysis for Reliance Industries' petrochemicals division for the year ending March 2009. Some key ratios calculated include: 1. The current ratio was 1.23, indicating current assets can cover current liabilities. 2. The acid test ratio increased to 0.78, showing an improved liquid financial position. 3. Inventory turnover was 3.73, meaning inventory had a fast turnover rate relative to sales. 4. The debt-to-equity ratio was 0.59, suggesting the company's long-term capital structure is sound with increasing debt and shareholder funds. 5. Gross profit ratio was 18.14%, providing a measure of profit

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 6

    Ratio Analysis

    Submitted To. Prof Lakshmi Chand


    Submitted By: Rahul Sebastian
    Submitted On: 10/01/2011
    Reliance Industries Balance Sheet (Petro Chemicals)

    Mar 06 Mar 07 Mar 08 Mar 09


    12 months 12 months 12 months 12 months
    Sources Of Funds
    Total Share Capital 1393.17 1393.21 1453.39 1573.53
    Equiuty Share Capital 1393.17 1393.21 1453.39 1573.53
    Share Application Money 0.00 60.14 1682.40 69.25
    Preference Share Capital 0.00 0.00 0.00 0.00
    Reserves 43760.90 59861.81 77441.55 112945.44
    Revaluation Reserves 4650.19 2651.97 871.26 11784.75
    Net Worth 49804.26 63967.13 81448.60 126372.97
    Secured Loans 7664.90 9569.12 6600.17 10697.92
    Unsecured Loans 14200.71 18256.61 29879.51 63206.56
    Total Debt 21865.61 27825.73 36479.68 73904.48
    Total Liabilities 71669.87 91792.86 117928.28 200277.45
    Application Of Funds
    Gross Block 84970.13 99532.77 117928.28 200277.45
    Less: Accum.Depreciation 29253.38 35872.31 42345.47 49285.64
    Net Block 55716.75 63660.46 61883.63 100343.06
    Capital Work In Progress 6957.79 7528.13 23005.84 69043.83
    Investments 5846.18 16251.34 20516.11 69043.83
    Inventories 10119.82 12136.51 14247.54 14836.72
    Sundry Debtors 4163.62 3732.42 6227.58 4571.38
    Cash and Bank Balance 239.31 308.35 217.79 500.13
    Total Current Assets 14522.75 16177.28 20692.91 19908.23
    Loans and Advances 8266.55 12506.71 18441.20 13375.15
    Fixed Deposits 1906.85 1527.00 5609.75 23014.71
    Total Current Assets, 24696.15 30210.99 44743.86 56298.09
    Loans & Advances
    Differed Credit 0.00 0.00 0.00 0.00
    Current Liabilities 17656.02 24145.19 29228.54 42664.81
    Provisions 3890.98 1712.87 2992.62 3010.90
    Total Current Liabilities 21547.00 25858.06 32221.16 45675.71
    & Provisions
    Net Current Assets 3149.15 4352.93 12522.70 10622.38
    Miscellaneous Expenses 0.00 0.00 0.00 0.00
    Total Assets 71669.87 91792.86 117928.28 200277.45
    Contingent Liabilities 24897.66 46767.18 37157.61 36432.69
    Book Value (Rs) 324.03 439.57 542.74 727.66
    Profit & Loss A/c Of Reliance Industries ( Petro Chemicals)
    Mar 06 Mar 07 Mar 08 Mar 09
    12 Months 12 Months 12 Months 12 Months
    Income
    Sales Turnover 89124.46 118353.71 139269.46 146328.07
    Excise Duty 8246.67 6654.68 5463.68 4369.07
    Net Sales 80877.79 111699.03 133805.78 141959.00
    Other Income 546.96 236.89 6595.66 1264.03
    Stock Adjustments 2131.19 654.60 -1867.16 427.56
    TOTAL INCOME 83555.94 112590.52 138534.28 143650.59
    Expenditure
    Raw Materials 59739.29 80791.65 98832.14 109284.34
    Power & Fuel Cost 1146.26 2261.69 2052.84 3355.98
    Employee Cost 978.45 2094.09 2119.33 2397.50
    Other Manufacturing 668.31 1112.17 715.19 1162.98
    Exp
    Selling & Admin Exp 5872.33 5478.10 5543.40 4736.60
    Preoperative Exp -155.14 -111.21 -175.46 -3265.65
    Capital;ised-155.14
    Total Expenses 68550.24 91947.72 109506.10 118234.17

    Operating Profit 3400.91 4815.15 4847.14 5195.29


    PBDIT 0.00 0.00 0.00 0.00
    Interest 10711.18 14528.75 23018.14 18446.66
    PBDT 0.88 0.51 48.10 0.00
    Depreciation 10712.06 14529.26 23066.24 18466.66
    Other Written Off 1642.72 2585.35 3559.85 3137.34
    Extra Ordinary Items 3400.91 4815.15 4847.14 5195.29
    Tax 10711.18 14528.75 23018.14 18446.66
    Reported Net Profit 0.88 0.51 48.10 0.00
    Total Value Addition 8810.95 11156.07 10673.96 8949.83
    Preference Dividend 0.00 0.00 0.00 0.00
    Equity Dividend 1393.51 1440.44 1631.24 1897.05
    Corporate Dividend 195.44 202.02 277.23 322.40
    Tax
    Per Share Data ( Annualized)
    Shares in issue 13935.08 13935.08 14536.49 15737.98
    Earning Per Share 65.08 85.71 133.86 97.28
    Equity Dividend 100.00 110.00 130.00 130.00
    Book Value 324.03 439.57 542.74
    Ratio Analysis Of Reliance Industries For The Year 2009
    1. Current Ratio

    Current Ratio = Current Assets


    Current Liabilities

    Current Ratio = 56,298.09 = 1.23


    45,675.71

    Comments: The Current Ratio is 1.23 : 1 in 2008-2009. It means that for one rupee of
    current liabilities, the current assets are 1.23 rupee is available to them

    2. Acid Test Ratio

    Acid Test Ratio = Quick Assets


    Current Liabilities

    Acid test Ratio = 36029.91 = 0.78


    45,675.71

    Comments: Acid Test Ratio indicates the liquid financial position of an enterprise. The
    ratio has increased from 0.67 to 0.78 which is good for the company.

    3. Inventory Turnover

    Inventory Turnover = Cost Of Goods Sold


    Avg Stock

    Inventory Turnover = 2, 57,226 = 3.73


    68,930
    Comments: Stock turnover ratio shows the relationship between the sales & stock it
    means how stock is being turned over into sales. It means with lower inventory the
    company has achieved greater sales.Thus the stock of the company is moving fast in
    the market

    4. Debt Equity Ratio

    Debt Equity Ratio = Debt


    Equity(Assets)

    Debtors Equity Ratio = 73904.48 = 0.59


    126372.97

    Comments: This shows that with the increase in debt, the shareholders fund also
    increased. This shows long-term capital structure of the company is sound. The lower
    ratio viewed as favorable from long term creditor’s point of view.

    5. Gross Profit Ratio

    Gross Profit Ratio = Gross Profit


    Net Sales

    Gross Profit Ratio = 25,758.2 =18.14


    1419.59

    Comments: The gross profit is the profit made on sale of goods.

    6. Return On Capital Employed

    Return On Capital Employed = Net Profit * 100


    Capital Employed

    Return On Capital Employed = 15308.32 * 100 = 7.64%


    200277.45
    Comments: The return on capital employed shows the relationship between profit &
    investment. Its purpose is to measure the overfall profitability from the total funds
    made available by the owner & lenders.

    7. Cash EPS
    Cash EPS = NPAT
    No Of Equity Shares

    Cash EPS = 1530932.00 = 97.28

    15737.98

    Comments: Cash EPS is calculated to find out the overall cash profitability of the company.

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