A PROJECT REPORT

ON

“THE STUDY OF WORKING CAPITAL MANAGEMENT OF

RELIANCE INDUSTRY LIMITED”

submitted in partial fulfillment of the requirement of

Master Of Business Administration
Kurukshetra University, Kurukshetra

SUPERVISION:
Dr. S.L.Gupta

SUBMITTED BY:
Name: Chhaya Panwar
Enrolment No.
Management of Business Administration(Gen)

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 KURUKSHETRA UNIVERSITY ,KURUKSHETRA

CERTIFICATE

To whomsoever it may concern

This is to certify that the project entitled “THE STUDY OF WORKING

CAPITAL MANAGEMENT OF RELIANCE INDUSTRY LIMITED” is
submitted to University School of Management, Kurukshetra
University,Kurukshetra, is a bonafide work carried out by Chhaya Panwar, a
student of “MBA(Gen) semester IV Enroll No.______________.This is a
record of original work done submitted in partial fulfillment of the
requirement for the award of the Degree of MBA under the guidance of
Dr.S.L.Gupta.

2
(Dr. S.L.Gupta)

3
 DECLARATION

I, CHHAYA PANWAR, student of MBA(Gen), hereby declare that project

entitled “THE STUDY OF WORKING CAPITAL MANAGEMENT OF
RELIANCE INDUSTRY LIMITED” submitted in the fulfillment of the
degree For Masters of Business Administration to “University School of
Management, Kurukshetra University, Kurukshetra” is my own accurate
work.

I further declare that all the facts and figures furnished in this project report
are the outcome of my own intensive research and findings.

Submitted By:
Chhaya Panwar
MBA(Gen) (2009-11)

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 ACKNOWLEDGEMENT

Success is not a destination, but a journey. I have realized it even better during
my project. This project has taught me that there is always room for
improvement, you can’t be complacent. Today when I am submitting this
project, although from outskirt it looks like complete project but still I feel
there is room for improvement. Hence saying “Success is not destination, but a
journey” completely held true.

At the outset, I would like to take the opportunity to thank all those people
who were constantly motivating and providing me with inspirational guidance
during the course of my project. I cannot possibly mention the names of all
those people who have enriched and improved my thinking through their
conversations. But without the names of some people this project report would
not have been possible.

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I take this opportunity to thank my faculty guide Dr.S.L.Gupta, for sharing
their immense knowledge, which helped in concentrating on the task.

I would like to express my regard to all teaching, non teaching staff for
helping me in the course of my endeavor which helped me to undertake the
project in a better fashion and without whose timely help and inspiration this
humble effort would not have taken a proper shape.

I express my deepest and most sincere thanks to all my friends for sharing
their knowledge and help that they have extended throughout the project and
provided an inspiration for taking the project to its completion.

TABLE OF CONTENTS

Sr.No.

6
  Acknowledgement
 Introduction
 Company Profile
 Objective Of The Study
 Research Methodology
 Data Collection
 Data Analysis And Interpretation
 Observation And Findings
 Conclusion And Suggestions
 Bibliography
 Thanks And Regards

INTRODUCTION

Introduction Working capital management

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Working capital refers to that part of the firm’s capital which is required for
financing short- term or current assets such as cash, marketable securities,
debtors & inventories. Funds, thus, invested in current assts keep revolving
fast and are being constantly converted in to cash and this cash flows out
again in exchange for other current assets. Hence, it is also known as
revolving or circulating capital or short term capital.

Working capital management is concerned with the problems arise in

attempting to manage the current assets, the current liabilities and the inter
relationship that exist between them.

The term current assets refers to those assets which in ordinary course of
business can be, or, will be, turned in to cash within one year without
undergoing a diminution in value and without disrupting the operation of the
firm. The major current assets are cash, marketable securities, account
receivable and inventory.
Current liabilities ware those liabilities which intended at there inception to be
paid in ordinary course of business, within a year, out of the current assets or
earnings of the concern. The basic current liabilities are account payable, bill
payable, bank over-draft, and outstanding expenses.

The goal of working capital management is to manage the firm’s current

assets and current liabilities in such way that the satisfactory level of working
capital is mentioned.

Definition:-
According to Guttmann & Dougall-

“Excess of current assets over current liabilities”.

According to Park & Gladson-

“The excess of current assets of a business (i.e. cash, accounts receivables,

inventories) over current items owned to employees and others (such as
salaries & wages payable, accounts payable, taxes owned to Government)”.

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 Capital required for a business can be classified under two main
categories via,

1)     Fixed Capital

2)     Working Capital

        Every business needs funds for two purposes for its establishment and to
carry out its day- to-day operations. Long terms funds are required to create
production facilities through purchase of fixed assets such as p&m, land,
building, furniture, etc. Investments in these assets represent that part of firm’s
capital which is blocked on permanent or fixed basis and is called fixed

9
capital. Funds are also needed for short-term purposes for the purchase of raw
material, payment of wages and other day – to- day expenses etc.

CONCEPT OF WORKING CAPITAL

There are two concepts of working capital:

1.     Gross working capital

2.     Net working capital

The gross working capital is the capital invested in the total current assets of
the enterprises current assets are those assets which can convert in to cash
within a short period normally one accounting year.

CONSTITUENTS OF CURRENT ASSETS

1)     Cash in hand and cash at bank

2)     Bills receivables

3)     Sundry debtors

4)     Short term loans and advances

5)     Inventories of stock as:

a.      Raw material

b.     Work in process

c.     Stores and spares

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 d.     Finished goods

6. Temporary investment of surplus funds.

7. Prepaid expenses

8. Accrued incomes.

9. Marketable securities.

 In a narrow sense, the term working capital refers to the net working.
Net working capital is the excess of current assets over current liability,
or, say:

NET WORKING CAPITAL = CURRENT ASSETS – CURRENT

LIABILITIES.

Net working capital can be positive or negative. When the current

assets exceeds the current liabilities are more than the current assets.
Current liabilities are those liabilities, which are intended to be paid in
the ordinary course of business within a short period of normally one
accounting year out of the current assts or the income business.

CONSTITUENTS OF CURRENT LIABILITIES

1.     Accrued or outstanding expenses.

2.     Short term loans, advances and deposits.

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3.     Dividends payable.

4.     Bank overdraft.

5.     Provision for taxation, if it does not amt. to app. of profit.

6.     Bills payable.

7.     Sundry creditors.

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  CLASSIFICATION OF WORKING CAPITAL

Working capital may be classified in to ways:

o       On the basis of concept.

o        On the basis of time.

On the basis of concept working capital can be classified as gross

working capital and net working capital. On the basis of time, working
capital may be classified as:

     Permanent or fixed working capital.

     Temporary or variable working capital

Amount of Working
Capital
Temporary capital

Permanent Capital

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 Time

PERMANENT OR FIXED WORKING CAPITAL

Permanent or fixed working capital is minimum amount which is required to

ensure effective utilization of fixed facilities and for maintaining the
circulation of current assets. Every firm has to maintain a minimum level of
raw material, work- in-process, finished goods and cash balance. This
minimum level of current assts is called permanent or fixed working capital as
this part of working is permanently blocked in current assets. As the business
grow the requirements of working capital also increases due to increase in
current assets.

TEMPORARY OR VARIABLE WORKING CAPITAL

Temporary or variable working capital is the amount of working capital which

is required to meet the seasonal demands and some special exigencies.
Variable working capital can further be classified as seasonal working capital
and special working capital. The capital required to meet the seasonal need of
the enterprise is called seasonal working capital. Special working capital is
that part of working capital which is required to meet special exigencies such
as launching of extensive marketing for conducting research, etc.

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Temporary working capital differs from permanent working capital in the
sense that is required for short periods and cannot be permanently employed
gainfully in the business.

IMPORTANCE OR ADVANTAGE OF ADEQUATE WORKING CAPITAL

 SOLVENCY OF THE BUSINESS:

Adequate working capital helps in maintaining the solvency of the business

by providing uninterrupted of production.

 Goodwill:

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Sufficient amount of working capital enables a firm to make prompt
payments and makes and maintain the goodwill.

 Easy loans:

Adequate working capital leads to high solvency and credit standing can
arrange loans from banks and other on easy and favorable terms.

 Cash Discounts:

Adequate working capital also enables a concern to avail cash discounts on

the purchases and hence reduces cost.

 Regular Supply of Raw Material:

Sufficient working capital ensures regular supply of raw material and

continuous production.

 Regular Payment Of Salaries, Wages And Other Day TO Day

Commitments:

It leads to the satisfaction of the employees and raises the morale of its
employees, increases their efficiency, reduces wastage and costs and
enhances production and profits.

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  Ability to Face Crises:

A concern can face the situation during the depression.

FACTORS DETERMINING THE WORKING CAPITAL

REQUIREMENTS

1.  NATURE OF BUSINESS:

The requirements of working is very limited in public utility

undertakings such as electricity, water supply and railways because they
offer cash sale only and supply services not products, and no funds are
tied up in inventories and receivables. On the other hand the trading and
financial firms requires less investment in fixed assets but have to invest
large amt. of working capital along with fixed investments.

2.  SIZE OF THE BUSINESS:

Greater the size of the business, greater is the requirement of working

capital.

3.  PRODUCTION POLICY:

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 If the policy is to keep production steady by accumulating inventories it
will require higher working capital.

4.  LENTH OF PRDUCTION CYCLE:

The longer the manufacturing time the raw material and other supplies
have to be carried for a longer in the process with progressive increment
of labor and service costs before the final product is obtained. So
working capital is directly proportional to the length of the
manufacturing process.

Sources of working capital

The company can choose to finance its current assets by

1. Long term sources
2. Short term sources
3. A combination of them.

Long term sources of permanent working capital include equity and

preference shares, retained earning, debentures and other long term debts from
public deposits and financial institution. The long term working capital needs
should meet through long term means of financing. Financing through long
term means provides stability, reduces risk or payment and increases liquidity
of the business concern. Various types of long term sources of working capital
are summarized as follow:

1. Issue of shares:

It is the primary and most important sources of regular or permanent working

capital. Issuing equity shares as it does not create and burden on the income of

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the concern. Nor the concern is obliged to refund capital should preferably
raise permanent working capital.

2. Retained earnings:

Retain earning accumulated profits are a permanent sources of regular

working capital. It is regular and cheapest. It creates not charge on future
profits of the enterprises.

3. Issue of debentures:

It crates a fixed charge on future earnings of the company. Company is

obliged to pay interest. Management should make wise choice in procuring
funds by issue of debentures.

Short term sources of temporary working capital

Temporary working capital is required to meet the day to day business

expenditures. The variable working capital would finance from short term
sources of funds. And only the period needed. It has the benefits of, low cost
and establishes closer relationships with banker.
Some sources of temporary working capital are given below:

1. Commercial bank:

A commercial bank constitutes significant sources for short term or temporary

working capital. This will be in the form of short term loans, cash credit, and
overdraft and though discounting the bills of exchanges.

2. Public deposits:

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Most of the companies in recent years depend on this source to meet their
short term working capital requirements ranging fro six month to three years.

3. Various credits:

Trade credit, business credit papers and customer credit are other sources of
short term working capital. Credit from suppliers, advances from customers,
bills of exchanges, etc helps to raise temporary working capital

4. Reserves and other funds:

Various funds of the company like depreciation fund. Provision for tax and
other provisions kept with the company can be used as temporary working
capital.The company should meet its working capital needs through both long
term and short term funds. It will be appropriate to meet at least 2/3 of the
permanent working capital equipments form long term sources, whereas the
variables working capital should be financed from short term sources. The
working capital financing mix should be designed in such a way that the
overall cost of working capital is the lowest, and the funds are available on
time and for the period they are really required.

SOURCES OF ADDITIONAL WORKING CAPITAL

Sources of additional working capital include the following-

1. Existing cash reserves
2. Profits (when you secure it as cash)
3. Payables (credit from suppliers)
4. New equity or loans from shareholder
5. Bank overdrafts line of credit
6. Long term loans

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If we have insufficient working capital and try to increase sales, we can easily
over stretch the financial resources of the business. This is called overtrading.
Early warning signs include

1. Pressure on existing cash

2. Exceptional cash generating activities. Offering high discounts for clear
cash payment
3. Bank overdraft exceeds authorized limit
4. Seeking greater overdrafts or lines of credit
5. Part paying suppliers or there creditor.
6. Management pre occupation with surviving rather than managing.

Different Aspects of Working Capital Management

Management of Inventory
Management of Receivables/Debtors
Management of Cash
Management of Payables/Creditors

MANAGEMENT OF INVENTORY

Inventories constitute the most significant part of current assets of a large

majority of companies. On an average, inventories are approximately 60% of
current assets. Because of large size, it requires a considerable amount of
fund. The inventory means and includes the goods and services being sold by
the firm and the raw material or other components being used in the
manufacturing of such goods and services.

Nature of Inventory:

The common type of inventories for most of the business firms may be
classified as raw-material, work-in-progress, finished goods.

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Raw material:
it is basic inputs that are converted into finished products
through the manufacturing process. Raw materials inventories are
those units which have been purchased and stored for future
productions.

Work–in–process:
Work-in-process is semi-manufactured products.
They represent products that need more work before them
become finished products for sale.

Finished goods:
These are completely manufactured products which are
ready for sale. Stocks of raw materials and work-in-process
facilitate production, while stock of finished goods is required for
smooth marketing operations. Thus inventories serve as a link
between the production and consumption of goods.The levels of
three kinds of inventories for a firm depend on the nature of
business. A manufacturing firm will have substantially high levels
of all the three kinds of inventories. While retail or wholesale firm
will have a very high level of finished goods inventories and no
raw material and work-in-process inventories.

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So operating cycle can be known as following:-

Raw Material

Work in
Progress

Cash Collection
from
Debtors
Sales
Finished Goods

Credit Sales Cash Sales

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Need to hold inventories

Maintaining inventories involves trying up of the company’s funds and

incurrence
of storage and holding costs. There are three general motives for holding
inventories:

Transactions Motive: IT emphasizes the need to maintain inventories to

facilitate smooth production and sales operation.

Precautionary Motive: It necessitates holding of inventories to guard

against the risk of unpredictable changes in demand
and supply forces and other factors.

Speculative Motive: It influences the decision to increase or reduce

inventory levels to take advantage of price fluctuations.

Management of Receivables/Debtors

The Receivables (including the debtors and the bills) constitute a significant
portion of the working capital. The receivables emerge whenever goods are
sold on credit and payments are deferred by customers. A promise is made by
the customer to pay cash within a specified period. The customers from whom
receivable or book debts have to be collected in the future are called trade
debtors and represents the firm’s claim or assets. Thus, receivable is s type of
loan extended by the seller to the buyer to facilitate the purchase process.
Receivable Management may be defined as collection of steps and procedure

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required to properly weight the costs and benefits attached with the credit
policy. The Receivable Management consist of matching the cost of
increasing sales (particularly credit sales) with the benefits arising out of
increased sales with the objective of maximizing the return on investment of
the firm.

Nature

The term credit policy is used to refer to the combination of three decision
variables:

1. Credit standards: It is the criteria to decide the type of customers to

whom goods could be sold on credit. If a firm has more
slow –paying customers, its investment in accounts
receivable will increase. The firm will also be exposed to
higher risk of default.

2. Credit terms: It specifies duration of credit and terms of payment by

Customer Investment in accounts receivable will be high
if customers are allowed extended time period for
making payments.

3. Collection efforts: It determine the actual collection period. The lower

the collection period, the lower the investment in
accounts receivable and vice versa.

Management of Cash

Cash management refers to management of cash balance and the bank balance
and also includes the short terms deposits. Cash is the important current asset
for the operations of the business. Cash is the basic input needed to keep the
business running on a continuous basis. It is also the ultimate output expected

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to be realized by selling the service or product manufactured by the firm. The
term cash includes coins, currency, and cheque held by the firm and balance
in the bank accounts.

Factors of Cash Management:

Cash management is concerned with the managing of

1. Cash flows into and out of the firm
2. Cash flows within the firm and
3. Cash balance held by the firm at a point of time by financing deficit or

investing surplus cash. Sales generate cash which has to be disbursed out.
The surplus cash has to be invested while deficit has to borrow. Cash
management seeks to accomplish this cycle at a minimum cost and it also
seeks to achieve liquidity and control.

Motives of holding cash

A distinguishing feature of cash as an asset is that it does not earn any

substantial return for the business. Even though firm hold cash for following
motives:

Transaction motive:
Precautionary motive
Speculative motives
Compensatory motive

Transaction motive: This refers to the holding of cash to meet routine cash
requirement to finance. The transactions, which a
firm carries on in the ordinary course of business.

1. Precautionary motive: This implies the needs to hold cash to meet

unpredictable contingencies such as strike, sharp increase in
raw materials prices. If a firm can borrow at short notice to

26
 pay them unforeseen contingency, it will need to maintain
relatively small balances and vice-versa.

2. Speculative motives: It refers to the desire of the firm to take advantage

of opportunities which present themselves at unexpected
movements and which are typically outside the normal
course of business.

3. Compensatory motive: Bank provides certain services to their client free

of cost. They therefore, usually require client to keep
minimum cash balance with them to earn interest and
thus compensate them for the free service so provided.

Management of Payables/Creditors

Creditors are a vital part of effective cash management and should be

managed carefully to enhance the cash position. Purchasing initiates cash
outflows and an over-zealous purchasing function can create liquidity
problems. Consider the
Following:

Who authorizes purchasing in our company-is it tightly managed or

spread among a number of people?
Are purchase quantities geared to demand forecasts?
Do we use order quantities which take account of stock-holding and
purchasing costs?
Do we know the cost to the company of carrying stock?
Do we have alternative source of supply?
How many of ours suppliers have a returns policy?
Are we in a position to pass on cost increases quickly through price
increase?

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MANAGEMENT OF WORKING CAPITAL

Management of working capital is concerned with the problem that

arises in attempting to manage the current assets, current liabilities. The
basic goal of working capital management is to manage the current
assets and current liabilities of a firm in such a way that a satisfactory
level of working capital is maintained, i.e. it is neither adequate nor
excessive as both the situations are bad for any firm. There should be no
shortage of funds and also no working capital should be ideal.
WORKING CAPITAL MANAGEMENT POLICES of a firm has a
great on its probability, liquidity and structural health of the
organization. So working capital management is three dimensional in
nature as

1.     It concerned with the formulation of policies with regard to

profitability, liquidity and risk.

2.     It is concerned with the decision about the composition and level of
current assets.

3.     It is concerned with the decision about the composition and level of
current liabilities.

 WORKING CAPITAL ANALYSIS

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 As we know working capital is the life blood and the centre of a
business. Adequate amount of working capital is very much essential for
the smooth running of the business. And the most important part is the
efficient management of working capital in right time. The liquidity
position of the firm is totally effected by the management of working
capital. So, a study of changes in the uses and sources of working capital
is necessary to evaluate the efficiency with which the working capital is
employed in a business. This involves the need of working capital
analysis.

The analysis of working capital can be conducted through a number of

devices, such as:

1.     Ratio analysis.

2.     Fund flow analysis.

3.     Budgeting.

METHODS OF WORKING CAPITAL ANALYSIS

There are so many methods for analysis of financial statements but RIL LTD
used the following techniques:-

 Comparative size statements

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  Trend analysis
 Cash flow statement
 Ratio analysis
A detail description of these methods is as follows:-

COMPARATIVE SIZE STATEMENTS:-

When two or more than two years figures are compared to each other than we
called comparative size statements in order to estimate the future progress of
the business, it is necessary to look the past performance of the company.
These statements show the absolute figures and also show the change from
one year to another.

TREND ANALYSIS:-
To analyze many years financial statements RIL LTD uses this method. This
indicates the direction on movement over the long time and help in the
financial statements.

Procedure for calculating trends:-

1. Previous year is taken as a base year.
2. Figures of the base year are taken 100.
3. Trend % are calculated in relation to base year.
CASH FLOW STATEMENT:-

Cash flow statements are the statements of changes in the financial position
prepared on the basis of funds defined in cash or cash equivalents. In short

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cash flow statement summaries the cash inflows and outflows of the firm
during a particular period of time.

Benefits for the RIL LTD:-

 To prepare the cash budget.
 To compare the cash budgets .
 To show the position of the cash and cash equivalents.

RATIO ANALYSIS:-

Ratio analysis is the process of the determining and presenting the relationship
of the items and group of items in the statements.

Benefits of ratio analysis to RIL LTD:-

1. Helpful in analysis of financial statements.

2. Helpful in comparative study.
3. Helpful in locating the weak spots of the RIL LTD.
4. Helpful in forecasting.
5. Estimate about the trend of the business.
6. Fixation of ideal standards.
7. Effective control.
8. Study of financial soundness.

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Types of ratio:-

 Liquidity ratio: They indicate the firms’ ability to meet its current
obligation out of current resources.

 Current ratio:- Current assets / Current liabilities

 Quick ratio:- Liquid assets / Current liabilities
Liquid assets =Current assets – Stock -Prepaid expenses

 Leverage or Capital structure ratio: This ratio discloses the firms

ability to meet the interest costs regularly and long term solvency of
the firm.
 Debt equity ratio:- Long term loans / Shareholders funds or net
Worth
 Debt to total fund ratio:- Long terms loans/ share holder funds
+long term loan
 Proprietary ratio:- Shareholders fund/ shareholders fund+long
term loan

 Activity ratio or Turnover ratio:- They indicate the rapidity with

which the resources available to the concern are being used to
produce sales.

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 Stock turnover ratio:- Cost of good sold/Average stock
(Cost of good sold= Net sales/ Gross profit,
Average stock=Opening stock+closing stock/2)
 Debtors turnover ratio:- Net credit sales/ Average debtors
+Average B/R
 Average collection period:- Debtors+B/R /Credit sales per

(Credit sales per day=Net credit sales of the year/365)

 Creditors Turnover Ratio:- Net credit purchases/ Average

Creditors + Average B/P
 Average Payment Period: - Creditors + B/P/ Credit purchase
per day.

 Fixed Assets Turnover ratio:- Cost of goods sold/Net fixed

Assets
(Net Fixed Assets = Fixed Assets – depreciation)
 Working Capital Turnover Ratio:- Cost of goods sold/
Working Capital
(Working capital= current assets – current liability)

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 Profitability Ratios or Income ratios:- The main objective of every
business concern is to earn profits. A business must be able to earn
adequate profit in relation to the risk and capital invested in it.

 Gross profit ratio:- Gross profit / Net Sales * 100

(Net sales= Sales – Sales return)

 Net profit Ratio:- Net profit / Net sales * 100

(Operating Net Profit= operating net profit/ Net Sales *100 or
operating Net profit= gross profit – operating expenses)

 Operating Ratio :- Cost of goods sold + Operating

expenses/Net Sales * 100
(Cost of goods sold = Net Sales – Gross profit, Operating
expenses = office & administration expenses + Selling &
distribution expenses + discount + bad debts + interest on short
term loans)

 Earning per share(E.P.S.) :- Net Profit – dividend on preference

share / No. of equity shares

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 Dividend per share (D.P.S.):- Dividend paid to equity share
Holders / No. of equity shares *100.

 Dividend Payout ratio(D.P.) :- D.P.S. / E.P.S. *100

COMPANY PROFILE

35
 "Growth has no limit at Reliance. I keep revising my vision.
Only when you can dream it, you can do it."

Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002

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$ 44 billion. The
flagship company, Reliance Industries Limited, is a Fortune Global 500
company and is the largest private sector company in India.

36
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.

Major Group Companies are Reliance Industries Limited (including main

subsidiary Reliance Retail Limited) and Reliance Industrial Infrastructure
Limited

ABOUT TELECOM INDUSTRY

World
telecom
industry
is an
uprising
industry, proceeding towards a goal of achieving two third of the world's
telecom connections. Over the past few years information and
communications technology has changed in a dramatic manner and as a result
of that world telecom industry is going to be a booming industry. Substantial
economic growth and mounting population enable the rapid growth of this
industry. The world telecommunications market is expected to rise at an 11
percent compound annual growth rate at the end of year 2010. The leading
telecom companies like AT&T, Vodafone, Verizon, SBC Communications,

37
Bell South, Qwest Communications are trying to take the advantage of this
growth. These companies are working on telecommunication fields like
broadband technologies, EDGE(Enhanced Data rates for Global Evolution)
technologies, LAN-WAN inter networking, optical networking, voice over
Internet protocol, wireless data service etc.

Economical aspect of telecommunication industry: World telecom industry is

taking a crucial part of world economy. The total revenue earned from this
industry is 3 percent of the gross world products and is aiming at attaining
more revenues. One statistical report reveals that approximately 16.9% of the
world population has access to the Internet.

Present market scenario of world telecom industry: Over the last couple of
years, world telecommunication industry has been consolidating by allowing
private organizations the opportunities to run their businesses with this
industry. The Government monopolies are now being privatized and
consequently competition is developing. Among all, the domestic and small
business markets are the hardest.

38
 INDIAN OVERVIEW

Today the Indian telecommunications network with over 375 Million

subscribers is second largest network in the world after China. India is also the
fastest growing telecom market in the world with an addition of 9- 10 million
monthly subscribers. The teledensity of the Country has increased from 18%
in 2006 to 33% in December 2008, showing a stupendous annual growth of
about 50%, one of the highest in any sector of the Indian Economy. The
Department of Telecommunications has been able to provide state of the art
world-class infrastructure at globally competitive tariffs and reduce the digital
divide by extending connectivity to the unconnected areas. India has emerged
as a major base for the telecom industry worldwide. Thus Indian telecom
sector has come a long way in achieving its dream of providing affordable and
effective communication facilities to Indian citizens. As a result common man
today has access to this most needed facility.

39
 ABOUT RELIANCE INDUSTRIES LIMITED

MISSION & VISION

“Continuously innovate to remain Partners in human progress by Harnessing
science & technology in the petrochemicals domain”

OUR MISSION

“Be a globally preferred Business associate with responsible Concern for

ecology, society, and stake holder’s value”.

VALUES & QUALITY POLICY

OUR VALUES

“Integrity, Respect for People, Unity of Purpose, Outside-in Focus, Agility

and Innovation”.

QUALITY POLICY

“Bare committed to meet customers’ requirements through continual

improvement Of our quality management systems. We shall sustain

40
organizational excellence through visionary leadership and innovative
efforts”.
RIL MILESTONE

YEAR EVENTS
1969 IPCL was incorporated under company act.
1970 Construction of our first Petrochemicals complex
commenced at Vadodara, Gujarat.
1973 Commenced commercial operation at Vadodara.
1992 Initial public offering and listing on the Vadodara stock
exchange
1992 Second Petrochemical Complex commenced at
Nagothane, Maharashtra
1996 Third Petrochemical Complex commenced at Gandhar
1999 Gandhar complex commissioned.
2000 Completion of the second phase of the Gandhar complex
2002 Reliance took over IPCL.
2004 Amendment agreement between the government and the
strategic partner, Reliance petroleum limited, a Reliance
group company.
2005 Government of India withdrew its nominee directors from
the board of directors of India petrochemicals co. ltd.
2006 Amalgamation of six polyester companies i.e. Apollo
fibres ltd, Central India ploysters ltd, India polyfibres ltd,
Orissa polyfibres ltd, Recron synthetics ltd and Silvassa
industries Pvt ltd with IPCL.
2007 RIL complete a landmark acquisition of IPCL.
2008 RIL signed MOU with GAIL(INDIA) Ltd. to explore

41
 opportunities of setting of petrochemical plants.

Products & Brands

The Company expanded into textiles in 1975. Since its initial public offering
in 1977, the Company has expanded rapidly and integrated backwards into
other industry sectors, most notably the production of petrochemicals and the
refining of crude oil.

The Company from time to time seeks to further diversify into other
industries. The Company now has operations that span from the exploration
and production of oil and gas to the manufacture of petroleum products,
polyester products, polyester intermediates, plastics, polymer intermediates,
chemicals and synthetic textiles and fabrics.

The Company's major products and brands, from oil and gas to textiles are
tightly integrated and benefit from synergies across the Company. Central to
the Company's operations is its vertical backward integration strategy; raw
materials such as PTA, MEG, ethylene, propylene and normal paraffin that
were previously imported at a higher cost and subject to import duties are now
sourced from within the Company. This has had a positive effect on the
Company's operating margins and interest costs and decreased the Company's
exposure to the cyclicality of markets and raw material prices. The Company
believes that this strategy is also important in maintaining a domestic market
leadership position in its major product lines and in providing a competitive
advantage.

The Company's operations can be classified into four segments namely:

 Petroleum Refining and Marketing business

 Petrochemicals business

42
  Oil and Gas Exploration & Production business
 Others

The Company has the largest refining capacity at any single location.

The Company is:

 Largest producer of Polyester Fibre and Yarn

 4th largest producer of Paraxylene (PX)
 5th largest producer of Polypropylene (PP)
 7th largest producer of Purified Terephthalic Acid (PTA) and Mono
Ethylene Glycol (MEG)

Manufacturing Facilities

Reliance Industries Limited operates world-class manufacturing facilities

across the country at Allahabad, Barabanki, Dahej, Hazira, Hoshiarpur,
Jamnagar, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara.

Allahabad Manufacturing Division is located in Allahabad, Uttar Pradesh. It is

equipped with batch polymerization and continuous polymerization facilities.

Barabanki Manufacturing Division is located near Lucknow, Uttar Pradesh. It

manufactures Black Fibre.

Dahej Manufacturing Division is located near Bharuch, Gujarat. It comprises

of an ethane / propane recovery unit, a gas cracker, a caustic chlorine plant
and 4 downstream plants, which manufacture polymers and fibre
intermediates.

Hoshiarpur Manufacturing Division is located in Hoshiarpur, Punjab. It

manufactures a wide range of PSF, PFF, POY and polyester chips.

43
Hazira Manufacturing Division is located near Surat, Gujarat. It comprises of
a Naptha cracker feeding downstream fibre intermediates, plastics and
polyester plants.

Jamnagar Manufacturing Division is located near Jamnagar. It comprises of a

petroleum refineries and associated petrochemical plants. The refineries are
equipped to refine various types of crude oil (sour crude, sweet crude or a
mixture of both) and manufactures various grades of fuel from motor gasoline
to Aviation Turbine Fuel (ATF). The petrochemicals plants produces plastics
and fibre intermediates.

Nagothane Manufacturing Division is located in Raigad, Maharashtra. It

comprises of an ethane and propane gas cracker and five downstream plants
for the manufacture of polymers, fibre intermediates and chemicals.

Nagpur Manufacturing Division is located in Nagpur, Maharashtra. It

manufactures polyester filament yarn, dope-dyed specialty products of
different ranges, fully drawn yarn and polyester chips.

Naroda Manufacturing Division is located near Ahmedabad, Gujarat, is RIL’s

first manufacturing facility. This synthetic textiles and fabrics manufacturing
facility manufactures and markets woven and knitted fabrics for home textiles,
synthetic and worsted suiting and shirting, ready to wear garments and
automotive fabrics.

Patalganga Manufacturing Division is located near Mumbai, Maharashtra. It

comprises of polyester, fibre intermediates and linear alklyl benzene
manufacturing plants.

44
Silvassa Manufacturing Division is located in the Union Territory of Dadra
and Nagar Haveli. It manufactures a wide range of specialty products such as
Recron Stretch, Linen Like, Melange, Thick-n-thin and Bi-shrinkage yarns.

Vadodara Manufacturing Division is located in Vadodara, Gujarat. It

comprises of a Naptha cracker and 15 downstream plants for the manufacture
of polymers, fibres, fibre intermediates and chemicals.

Each of these complexes has world class manufacturing facilities.

INOVATIONS OF RIL

For those who study innovative organizations Reliance Industries will be a

shining example of how innovation is practised in almost everything that they
do. Here are few things that set them apart:

 "Impossible is an inspiring word" - Nothing turns on the leadership at

Reliance Industries than this magical word. Again to quote the Jamnagar
example, it was considered impossible to turn a barren land into a

45
 greenbelt. Today mangoes grown in Jamnagar are sold in Harrods
London.

 "Hands on thinking, hands off execution." - It is characteristic of

Reliance leadership. They think everything through and meticulous
planning is their hall mark. When it comes to execution empowerment
delegation down to the last employee in the chain is clearly
demonstrated.
 "First time it is learning. Second time it is a mistake." - Mistakes are
never frowned upon; instead they are treated as a learning opportunity. It
is one such mistake converted to learning that created the world's largest
'Craft Centre' located at Jamnagar. Cumulatively it has trained 1, 50,000
workmen - electricians, welders, carpenters.
 "Sense of urgency" - Reliance speed is legendary now. Reliance has
mastered project management skills and has made it virtually into a fine
art. It is this sense of speed that restored operations in record time in
Jamnagar, Patalganga and Hazira after being affected by cyclones and
floods.

"Hard work, timely decisions, speed and ingenuity" says one of the senior
managers of Reliance Industries to sum up what Reliance is all about.

It is evident that Reliance Industries is where it is today because of Innovation

in thinking and execution. Given its ambition for India and its own
organization Reliance leadership has now taken on a major initiative in the
innovation domain.

46
 OBJECTIVES
OF
THE STUDY

OBJECTIVES OF STUDY

 Find out Ratios related to working capital management of RIL and

compare with last 5 years.

 Find deviation of calculated from standard or Norms.

SCOPE OF STUDY

47
The scope of this study is to provide an insight into concept of working capital
management and illustrate it by actually working capital management of RIL.

RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

48
For every comprehensive research a proper research methodology is
indispensable & it has to be properly conceived. The methodology adopted by
me is as follows:-

RESEARCH PROBLEM

 To know the working capital management of RIL with the help of ratio
analysis.

RESEARCH DESIGN
According to Clifford Woody, “research comprises defining and redefining
problems, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data; making deductions and reaching conclusions;
and at last carefully testing the conclusions to determine whether they fit.

Working Capital Management through secondary data based on certain

parameters;

SOURCES OF DATA

49
The secondary data, are those which have already been collected by someone
else and which have already been passed through the statistical process.

For this research report, Secondary data was used for the working capital
management of RIL that is company annual reports, profit and loss account
and balance sheet for the years 2004-05, 2005-06, 2006-07, 2007-08, 2008-09,
2009-10, magazines and newspapers.

STATISTICAL TOOLS USED

The various statistical tool used were data distribution tables, graphs and pie
charts. Ratio analysis was used for determining the working capital
management of RIL.

50
 DATA COLLECTION

Types of data collection

Secondary data collection method

The secondary data are those which have already collected and stored.
Secondary data easily get those secondary data from records, journals, annual
reports of the company etc. It will save the time, money and efforts to collect
the data. Secondary data also made available through trade magazines,
balance sheets, books etc.

51
This project is based on secondary information collected through five years
annual report of the company, supported by various books and internet sides.
The data collection was aimed at study of working capital management of the
company

Data analysis
&
Interpretation

52
 (WORKING CAPITAL MANAGEMENT OF RIL)

 CURRENT RATIO

It is also known as “working capital ratio” .It is a measures of short-term

financial strength of the business and shows whether the business will be able
to meet it’ s current liabilities as when they mature.

Current Assets including assets which can be converted in to cash easily and
itself like market securities debtors, inventory, prepaid expenses etc.
Current Liabilities included creditors, bills payable, accrual expenses, short
term bank loan, income tax liabilities and long term debt maturity in current
year. In short it can be said as all obligation within a year are included in
current liabilities.
Current ratio is a measure of the firm’s short term solvency. It indicate the
availability of current assets in rupee of current liabilities. As a conventional
rule, a current ratio should be or slightly more. It focuses the strong of weak
position of the company.

53
For the year:

2009-10 = Rs. 62378 = 1.54:1

Rs. 40413

2008 - 09 = Rs. 58746.07 = 1.61:1

Rs. 35756.98

2007 - 08 = Rs. 51488.87 = 2.19:1

Rs. 23417.51

2006 - 07 = Rs. 29913.35 = 1.77:1

Rs. 16865.53

2005 - 06 = Rs. 24574.45 = 1.96:1

Rs. 12563.50

2004 - 05 = Rs. 28452.51 = 2.14:1

Rs. 13283.95

54
 YEARS CURRENT RATIO
2009-10 1.54:1
2008-09 1.61:1
2007-08 2.19:1
2006-07 1.77:1
2005-06 1.96:1
2004-05 2.14:1

2009-10
2008-09
2007-08
2006-07
2005-06
2004-05

INTERPRETATION:

It is generally believed that 2:1 ratio shows a comfortable working capital

position. The tendon committee appointed by RBI had wide recommended a
current ratio of 2:1.

55
Company has maintained this ration and increased it year by year. A current
ratio is 1.54 in the current year. But in the other year the ratio is nearer to 1:2
so we can say that the company having comfortable working capital position.

 ACID-TEST RATIO

The measure of absolute liquidity may be obtained only cash and bank
balance as well as only ready marketable security with liquid liabilities. This
is every existing standard of liquidity and it is satisfaction if the ratio is 1.50:1.

For the year:

2009-10 = Rs. 66595.32 – 27391042 = 0.76:1

Rs. 51584.08

2008 - 09 = Rs. 58746.07 – 20109.61 = 1.08:1

Rs. 35756.98

2007 - 08 = Rs. 51488.87 - 19126.14 = 2.19:1

56
 Rs. 23417.51

2006 - 07 = Rs. 29913.35 – 12136.51 = 1.38:1

Rs. 16865.53

2005 - 06 = Rs. 24574.45 – 10119.82 = 1.15:1

Rs. 12563.50

2004 - 05 = Rs. 28452.51 – 7412.88 = 1.58:1

Rs. 13283.95

YEARS ACID-TEST RATIO

2009-10 0.87:1
2008-09 1.08:1
2007-08 1.38:1
2006-07 1.05:1
2005-06 1.15:1
2004-05 1.58:1
INTERPRETATION:

Acid-test ratio is 0.87 in current year as compare to 1.08 in the previous year.
Over all the acid-test ratio of last five year is very satisfactory so we can
conclude that the absolute liquidity of the Reliance Industries Limited is in
favor.

57
  DEBTORS TURNOVER RATIO

This ratio shows the proportion of sales to average receivables. It shows the
efficiency of the collection policy of the firm. The higher the ratio, the less
satisfactory position of the firm. Higher ratio indicates weak collection policy
of the firm.

For the year:

2008 - 09 = Rs. 151224.01 = 31.21:1

Rs. 4844.97

2007 - 08 = Rs. 137146.66 = 22.60:1

Rs. 6068.30

2006 - 07 = Rs. 111692.72 = 29.92:1

Rs. 3732.42

2005 - 06 = Rs. 81211.33 = 19.50:1

DEBTORS TURNOVER RATIO
Rs. 4163.6
DEBTORS TURNOVER RATIO

35
30
YEARS DEBTORS TURNOVER RATIO
25
20 2008-09 31.21:1
DEBTORS TURNOVER
15 RATIO
2007-08 22.60:1
10
5 2006-07 29.92:1
0
2005-06
2009-10 2008-09 2007-08 2006-07 2005-06
19.50:1 58

2004-05 YEARS 16.82:1

INTERPRETATION:

We know that the higher Debtor’s turnover ratio is not good for the firm. In
the year 2008-09 it is 31.21:1 but in the previous year it was 22.60:1. So some
improvement is needed.

 CREDITOR’S TURNOVER RATIO :

Creditor’s turnover ratio shows the proportion of purchase to account payable

number of days within which we make payment to our creditors for credit
purchases estimated the creditors ratio if this ratio is higher it means company
has to check whether company is making payment within credit period
available. If it is making payment before the due date means the company is

59
not taking full advantage of it credit period and if company making the
payment the period that indicates that the company is not taking the benefit of
discount allowed.

For the year:

2008 - 09 = Rs. 118961.16 = 3.33:1

Rs. 35756.98

2007 - 08 = Rs. 108270 = 4.62:1

Rs. 23417.51

2006 - 07 = Rs. 92301.09 = 5.47:1

Rs. 16835.53

2005 - 06 = Rs. 69043.43 = 5.49:1

Rs. 12563.50

2004 - 05 = Rs. 52715.92 TURNOVER

CREDITOR’S = 3.96:1RATIO
Rs. 13283.95
6 5.47 5.49
5 4.62
3.96
4 3.33
3 YEARS CREDITOR’S TURNOVER RATI
2
2008-09 3.33:1
1 CREDITOR’S

0 2007-08 4.62:1
TURNOVER
RATIO
2006-07
2008-2007-2006-2005-2004- 5.47:1
09 08 07 06 05
2005-06 5.49:1
60
2004-05 3.96:1
YEARS
INTERPRETATION:

Higher Ratio of creditor turnover forces the company to check that payment is
made with in credit period properly or not. The creditors’ turnover ratio is
3.33 in 2008-09 as compare to 2007-08 the ratio is 4.62 which is higher than
the other years.

 INVENTORY TURNOVER RATIO

This ratio is also known as “stock turnover ratio”. The number of times the
average stock is turnover during the year is known as stock turnover. It is
computed by deciding the sales by the inventory. The ratio is important in
joining the ability of management which it can move the stock.

61
For the year:

2009 - 10 = Rs. 200400 = 8.013 times

Rs.25008

2008 - 09 = Rs. 151224.01 = 7.51 times

Rs. 20109.61

2007 - 08 = Rs. 137146.66 = 7.17 times

Rs. 19126.14

2006 - 07 = Rs. 111692.72 = 9.20 times

Rs. 12136.51

2005 - 06 = Rs. 81211.33 = 8 times

Rs. 10119.82

2004 - 05 = Rs. 66051.30 = 8.91 times

Rs. 7412.88

62
 YEARS INVENTORY TURNOVER RATIO
2009-10 8.013 times
2008-09 7.51 times
2007-08 7.17 times
2006-07 9.20 times
2005-06 8.00 times
2004-05 8.91 times
10

8
2009-10
2008-09
6
2007-08
4 2006-07
2007-06
2 2004-05

INTERPRETATION:

Higher the ratio more profitability the business would be. The ratio is joining
the ability of management with which it can move the stock. Inventory
turnover ratio is highest in the year 2006-07 is 9.20 as compare to the other
year but in current year it is 8.013 which is little lower than previous year but
it is obvious that in heavy industries like Reliance Industries Limited have
lower ration as compare to FMCG.

63
  NET WORKING CAPITAL TURNOVER RATIO

Net working capital turnover ratio is obtained by net working capital joining
to sales. The excess of current assets over current liabilities is called working
capital. It is found for measuring firm liquidity. It also measures the firm
potential reserve of funds.

For the year:

2009-10 = Rs. 200400 = 9.12 times

Rs. 21965

2008 - 09 = Rs. 151224.01 = 5.83 times

Rs. 19874.06

2007 - 08 = Rs. 137146.66 = 5.57 times

Rs. 24622.18

2006 - 07 = Rs. 111692.72 = 9.85 times

Rs. 11334.95

64
2005 - 06 = Rs. 81211.33 = 10 times
Rs. 8119.97

2004 - 05 = Rs. 66051.30 = 5.83 times

Rs. 11320

YEARS WORKING CAPITAL TURNOVER

RATIO
2009-10 9.12 times
2008-09 7.60 times
2007-08 5.57 times
2006-07 9.85 times
2005-06 10.00 times
2004-05 5.83 times
WORKING CAPITAL TURNOVER RATIO
YEARS

2004-05 5.83

2005-06 10
WORKING
2006-07 9.85 CAPITAL
TURNOVER
2007-08 5.57
RATIO
2008-09 7.6
2009-10 9.12
WORKING CAPITAL TURNOVER RATIO

65
INTERPETATION:

As per the balance sheet data of the creditor the working capital turnover ratio
is different for the different years. The ratio is 9.12 in 2009-10 and 7.60 in
2008-09 but the best favorable ratio is in 2005-06 which is 10 times. So it
means that higher the ratio better the working capital condition of the
company.

 DEBTOR COLLECTION PERIOD

The Debt Collection shows the number of days taken to collect the debts of
credit sales. It shows the efficiency and collection policy of the company. The
ratio is computed by dividing the Debtor’s turnover ratio in to 365 days.

For the year:

2008 - 09 = 365 days = 11 days

31.21
2007 - 08 = 365 days = 16.15 days
22.60
2006 - 07 = 365 days = 12.20 days

66
 29.92
2005 - 06 = 365 days = 18.71 days
19.50
2004 - 05 = 365 days = 21.70 days
16.82

YEARS DEBTORS COLLECTION PERIOD

2008-09 11.00 days

2007-08 16.15 days
2006-07 12.20 days
2005-06 18.71 days
2004-05 20.71 days

67
 INTERPRETATION:

The collection period is highest in 2004-05 is 20.71 days as compare to very

low in 2008-09 is only 11 days. This shows the improvement in collection
policy of the Reliance Industries Limited. So it is very important for any
company to collect the debs which this company do very well.

STATEMENT OF RATIO ANALYSIS

RATIOS 2009- 2008- 2007- 2006-07 2005- 2004-

10 09 08 06 05
Current ratio 1.54 1.64 2.19 1.77 1.96 2.14
Acid-test ratio 0.87 1.08 1.38 1.05 1.15 1.58
Debtor’s turnover ratio - 31.21 22.60 29.92 19.50 16.82
Creditor’s turnover ratio - 3.33 4.62 5.47 5.49 3.96
Inventory turnover ratio 8.013 7.51 7.17 9.20 8.00 8.91

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Net-working capital 9.12 7.60 5.57 9.85 10.00 5.83
turnover ratio
Debt collection period - 11 16.15 12.20 18.71 21.70

COMPREHENSIVE ANALYSIS

35
30
25
VALUES

20
15
10
5
0
Current

Debtor’s

Inventory
turnover

working

turnover
Acid-test

turnover

collection
Creditor’s

capital
turnover
ratio

ratio

Net-

period
ratio

ratio

Debt
ratio

RATIOS

2008-09 2007-08 2006-07 2005-06 2004-05

69
OBSERVATIONS
&
FINDINGS

OBSERVATIONS & FINDINGS

Findings of working capital management of RIL

 The company having comfortable working capital position.

 The absolute liquidity of the Reliance Industries Limited is in favour.
 The collection policy of the company is very good.
 The creditors turnover ratio is 3.33 in 2008-09 as compare to 2007-08
the ratio is 4.62 which is higher than the other years.
 Inventory turnover ratio is highest in the year 2006-07 is 9.20 as
compare to the other year but in current year it is 7.51 which is little bit

70
 lower than previous year but it is obvious that in heavy industries like
Reliance Industries Limited have lower ratio as compared to FMCG.

 The working capital ratio is 7.60 in 2008-09 and 5.57 in 2007-08 but the
best favorable ratio is in 2005-06 which is 10 times. So it indicates better
working capital condition of the company.

 This is an improvement in collection policy of the Reliance Industries

Limited.

CONCLUSION
&

SUGGESTION

71
 CONCLUSION

In the present study I have analyzed the working capital management of RIL
INDUSTRY Limited.
The study involves practical and conceptual over view of decisions
concerning current assets like cash and bank balance ,inventories( like raw
materials ,w-i-p, finished goods ),sundry debtors, loans and advances, other
current assets and current liabilities like sundry creditors, securities and other
deposits, other current liabilities and provisions of RIL. Was with the
objective of maximizing the overall net profit of the bank. And complete
synchronization and co ordination among the working capital components
which shall contribute to optimum level of operations. Mismanagement of
each or any of these components shall be detrimental to the objectives of
efficient operation, profitability and maximization of overall value of the
bank.
The working capital limits would be considered only after the project nearing
completion and after ensuring control over the inventory. The inventory is a
great concern for RIL and it need proper procurement and management.
Eligible working capital limits would be assessed by cash Budget method And
Projected production method depending the market condition, scale of
operation, nature of activity/enterprise and duration/length of operating cycle
etc.

72
 SUGGESTIONS

The recommendation & suggestion for effective management of working

capital at RIL are given bellow:
1) For inventory, in order to improve the position, RIL can reduce the level of
stocks by resorting to phased production i.e. producing according to
requirement and disposing off or recycling the unserviceable inventories.
However, the low turnover of stock may also be due to problems with
generation of sales. Inventory management is a great concern for RIL
especially stores and spares. The purchase manager should take proper steps
for procurement of inventories.

2.) The company must take certain steps to decrease the working capital cycle.
One way can be better management of inventories.

3.) RIL is suggested to maintain a balance in capacities, synchronization of

various inputs availability of some materials or parts which are not easily
available.

4.) Short term credit period availed must be reduced and sundry creditors
should be paid faster.

5.) It should maintain inventory at an optimum level rather than a very

optimistic level.

6.) The procurement for materials requisition processing should be reduced so

as to minimize the lead time.

7.) Freedom should be there in deciding the credit policies, cash discount or
credit ratings.

73
8). RIL can also consider negotiating its creditors for relaxing the debt
repayment period and repaying only on or just before the expiry of the credit
period.

BIBLIOGRAPHY

74
BIBLIOGRAPHY

 www.ril.com

 http://www.ril.com/html/investor/financials.html

 Annual Report for the year 2009-20010 

 Annual Report for the year 2008-2009 

 Annual Report for the year 2007-2008 

 Annual Report for the year 2006-2007

 Annual Report for the year 2005-2006  

 Annual Report for the year 2004-2005 

 http://www.studyfinance.com/lessons/workcap/

 http://en.wikipedia.org/wiki/Working_capital

75
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