ACCOUNTING

SUMMER VACATION ASSIGHNMENT

FACULTY:- MR. AAKASH JAIN.

SUBMITTED BY:-
DEEPAK AGGARWAL\
ROLL NO. 14
MBA 1ST SEM.
RELIANCE INDUSTRIES

Reliance Industries Limited (NSE: RELIANCE) is India's largest private sector

conglomerate (and second largest overall) with an annual turnover of US$ 35.9 billion
and profit of US$ 4.85 billion for the fiscal year ending in March 2008 making it one of
India's private sector Fortune Global 500 companies, being ranked at 206th position
(2008). It was founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani has
been a pioneer in introducing financial instruments like fully convertible debentures to
the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail
investors to the stock markets. Critics allege that the rise of Reliance Industries to the
top slot in terms of market capitalization is largely due to Dhirubhai's ability to
manipulate the levers of a controlled economy to his advantage.
Though the company's oil-related operations forms the core of its business, it has
diversified its operations in recent years. After severe differences between the founder's
two sons, Mukesh Ambani and Anil Ambani, the group was divided between them in
2006. In September 2008, Reliance Industries was the only Indian firm featured in the
Forbes's list of "world's 100 most respected companies"

STOCKS.
According to the company website "1 out of every 4 investors in India is a Reliance
shareholder." See: Reliance has more than 3 million shareholders, making it one of the
world's most widely held stock. Reliance Industries Ltd, subsequent to its split in
January 2006 has continued to grow. Reliance companies have been among the best
performing in the Indian stock market.
PRODUCT
Reliance Industries Limited has a wide range of products from petroleum products,
petrochemicals, to garments (under the brand name of Vimal), Reliance Retail has
entered into the fresh foods market as Reliance Fresh and launched a new chain called
Delight Reliance Retail and NOVA Chemicals have signed a letter of intent to make
energy-efficient structures.
The primary business of the company is petroleum refining and petrochemicals. It
operates a 33 million tonne refinery at Jamnagar in the Indian state of Gujarat. Reliance
has also completed a second refinery of 29 million tons at the same site which started
operations in December 2008. The company is also involved in oil & gas exploration
and production. In 2002, it struck a major find on India's eastern coast in the Krishna-
Godavari basin. Production from this find is expected to start by the third quarter of
2008.

MANAGEMENT
It is headed by Mukesh Ambani, son of late Dhirubhai Ambani.

SUBSIDIARIES
Major Subsidiaries & Associates
• Reliance Petroleum
• Ranger Farms Limited
• Retail Concepts and Services (India) Private Limited
• Reliance Retail
• Reliance Global Management Services (P) Limited
• Reliance Biopharmaceuticals
• Reliance Ghatraj Services
• Reliance Engineering Associates (P) Limited

Reliance's Oil & Gas

In 2002, Reliance found natural gas in the Krishna-Godavari basin off the coast of
Andhra Pradesh near Vishakapatnam. It was the largest discovery of natural gas in
world in financial year 2002-2003. On 01 April 2009, Reliance Industries (RIL)
commenced natural gas production from its D-6 block in the Krishna-Godavari (KG)
basin.
The gas reserve is 7 trillion cubic feet in size. Equivalent to 1.2 billion barrels (165
million tonnes) of crude oil, but only 5 trillion cubic feet are extractable. On 2008 Oct 8,
Anil Ambani's Reliance Natural Resources took Reliance Industries to the Bombay
High Court to uphold a memorandum of understanding that said RIL will supply the
natural gas at $2.34 per million british thermal units to Anil Ambani.

Reliance Retail
Kitchens, and Reliance Jewel come under Reliance Retail is the retail business wing of
the Reliance business. Many brands like Reliance Fresh, Reliance Footprint, Reliance
Time Out, Reliance Digital, Reliance Wellness, Reliance Trendz, Reliance Autozone,
Reliance Super, Reliance Mart, Reliance iStore, Reliance Home the Reliance Retail
brand.

Environmental record
In 2005 Reliance Industries was found to be one of the top five consumers of toluene in
the world. These five companies account for 30% of the total consumption. Toluene use
produces a toxic chemical that is released into the air when it is burned. Under the 1990
Clean Air Act Amendments, the U.S. EPA is required to regulate emissions of listed
toxic air pollutants. Cleaner replacements for toluene may be used. Reliance Industry is
the worlds largest polyester producer and as a result one of the largest producers of
polyester waste in the world. In order to deal with this large amount of waste they had to
create a way to recycle the waste. They operate the largest polyester recycling center
that uses the polyester waste as a filling and stuffing. They use this process to develop
a strong recycling process which won them a reward in the Team Excellence
competitionReliance Industries backed a conference on environmental awareness in
New Delhi in 2006. The conference was run by the Asia Pacific Jurist Association in
partnership with the Ministry of Environment & Forests, Govt. of India and the
Maharashtra Pollution Control Board. The conference was to help bring about new
ideas and articles on various aspects of environmental protection in the region.
Maharashtra Pollution Control Board invited various industries complied with the
pollution control norms to take active part in the conference and to support as a
sponsor. The conference proved effective as a way to promote environmental concern
in the area.

Awards & Recognition

• International Refiner of the Year in 2005 at the 23rd Annual Hart's World Refining
and Fuels Conference
Awards for managers
• Mukesh D. Ambani received the United States of America-India Business Council
(USIBC) leadership award for "Global Vision" 2007 in Washington in July 2007.
• Mukesh D. Ambani was conferred the Asia Society Leadership Award by the
Asia Society, Washington, USA, May 2004.
• Mukesh D. Ambani ranked 13th in Asia's Power 25 list of The Most Powerful
People in Business published by Fortune magazine, August 2004.
• Mukesh D. Ambani is Economic Times Business Leader of the Year

Companie’ s
financial result.
1.- current year balance sheet.
(RS. IN CRORES)
Balance sheet (Rs crore)

Mar '
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 04
05
Sources of funds

Owner's fund
1,393.1 1,393.
Equity share capital 1,453.39 1,393.21 1,395.95
7 09
Share application money 1,682.40 60.14 - - -

Preference share capital - - - - -

59,861.8 43,760. 36,280
Reserves & surplus 77,441.55 30,322.97
1 90 .35
Loan funds
7,664.9 7,972.
Secured loans 6,600.17 9,569.12 11,451.14
0 90
18,256.6 14,200. 10,811
Unsecured loans 29,879.51 9,493.52
1 71 .69
89,140.8 67,019. 56,458
Total 1,17,057.02 52,663.58
9 68 .03
Uses of funds

Fixed assets
99,532.7 84,970. 55,125
Gross block 1,04,229.10 53,502.91
7 13 .82
4,650.1 2,729.
Less : revaluation reserve 871.26 2,651.97 2,733.53
9 88
35,872.3 29,253. 24,872
Less : accumulated depreciation 42,345.47 21,713.74
1 38 .83
61,008.4 51,066. 27,523
Net block 61,012.37 29,055.64
9 56 .11
6,957.7 4,829.
Capital work-in-progress 23,005.84 7,528.13 3,356.81
9 29
16,251.3 5,846.1 17,051
Investments 22,063.60 13,971.40
4 8 .46
Net current assets
30,210.9 24,696. 28,819
Current assets, loans & advances 43,196.37 23,046.36
9 15 .15
25,858.0 21,547. 21,764
Less : current liabilities & provisions 32,221.16 16,766.63
6 00 .98
3,149.1 7,054.
Total net current assets 10,975.21 4,352.93 6,279.73
5 17
Miscellaneous expenses not written - - - - -
89,140.8 67,019. 56,458
Total 1,17,057.02 52,663.58
9 68 .03
Notes:
5,322.6 13,582
Book value of unquoted investments 12,746.75 9,438.20 13,435.29
0 .43
24,454.4 4,156.
Market value of quoted investments 53,126.09 780.71 948.40
6 40
46,767.1 24,897. 6,579.
Contingent liabilities 37,157.61 8,559.77
8 66 47
13935.0 13935.
Number of equity sharesoutstanding (Lacs) 14536.49 13935.08 13963.78
8 08

2.- Current year cash flow statement.

 (Rs
Cash flow (RS. IN CRORES) crore)

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Profit before tax 23,010.14 14,520.47 10,704.06 9,068.68 6,301.14
Net cashflow-operating activity 17,426.74 16,870.55 10,301.58 17,288.58 11,777.56
Net cash used in investing activity -23,955.08 -18,567.01 -12,130.88 -8,162.34 -10,563.07
Netcash used in fin. activity 8,973.04 306.08 366.67 -5,741.69 -1,137.46
Net inc/dec in cash and equivlnt 2,444.70 -1,390.38 -1,462.63 3,384.55 77.03
Cash and equivalnt begin of year 1,835.35 3,225.73 3,608.79 224.24 147.21
Cash and equivalnt end of year 4,280.05 1,835.35 2,146.16 3,608.79 224.24

COMPANIES’S PROFILE.
Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters. It has e
the only Indian company in the list of global companies that create most value for their shareholders, published by F
Times based on a global survey and research conducted by PricewaterhouseCoopers in 2004. RIL features in the F

Global list of world’s 400 best big companies and in FT Global 500 list of world’s largest

Reliance Infocomm is the outcome of late Dhirubhai Ambani’s dream of bringing about a digital revolu
that will bring to every Indian’s doorstep an affordable means of information and communication.

"Make the tools of infocomm available to people at an affordable cost. They will overcome the handicaps of illiterac

of mobility", was how Dhirubhai, as he was fondly called, spelt out Reliance Infocomm’s mission in lat
firmly believed the country could use information and communication technology to overcome its backwardness and
underdevelopment.

It was with this belief that Reliance Infocomm began laying its 60,000 route kilometres of pan-India fib
backbone in 1999. The backbone was commissioned on December 28, 2002, Dhirubhai’s 70th birth anniversary, fir
sad demise on July 6, 2002.
 CompanIES Facts -
Reliance
Registered Address
3rd Floor,
Maker Chambers IV,,222, Nariman Point
Mumbai
Maharashtra
400021

Tel: 022-22785000
Fax: 022-22785111
Email: [email protected]
Website: http://www.ril.com

Explore Reliance connections

Registrars
Karvy Computershare Private Ltd "Karvy House"
46, Avenue 4,
Street No. 1
Banjara Hills

Tel: 23312454, 23320251/751/752

Fax: 23311968
Email: [email protected]
Website: http://www.karvycomputershare.com
Management - Reliance
Name Designation
Mukesh D Ambani Chairman and Managing director
Hital R Meswani Executive Director
Ramniklal H Ambani Director
Yogendra P Trivedi Director
Mahesh P Modi Director
Ashok Misra Director
Raghunath A Mashelkar Director
Nikhil R Meswani Executive Director

Hardev Singh Kohli Executive Director

Mansingh L Bhakta Director
Dharam Vir Kapur Director
S Venkitaramanan Director

Dipak C Jain Director