Index

1 Introduction

2 History

3 Subsidiaries of Reliance Industries

4 Management — Reliance Industries

5 Objective of Financial Analysis

6 Ratio Analysis

7 Report on the Audit

8 Reliance Industries SWOT Analysis

9
Problems Faced by Reliance Industries during Covidl 9

10 Conclusion

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Reliance
Industries Limited
Reliance Industries Limited (RIL) is an Indian multinational conglomerate
headqualtered in Mumbai. Reliance owns businesses across India engaged in energy,
petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is
one of the most profitable companies in India the largest publicly traded company in
India by market capitalisation, and the largest company in India as measured by revenue
after recently surpassing the government-controlled Indian Oil Corporation. It is also the
eighth largest employer in India with nearly 195,000 employees. On 10 September 2020,
Reliance Industlist became the first Indian company to cross $200 billion in market
capitalisation.
The company is ranked 96th on the Fortune Global 500 list of the world's biggest corporations as of 2020. It is
ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016. Reliance continues to be India's
largest exporter, accounting for 8% of India's total merchandise exports with a value of R crore and
access to markets in 108 countries. Reliance is responsible for almost 5% of the govemment of India's total
revenues from customs and excise duty. It is also the highest income tax payer in the private sector in India.

Type Public

Traded as BSE: 500325 NSE: RELIANCE LSE: RIGO BSE SENSEX Constituent NSE
NIFTY 50 Constituent

ISIN INE002A01018

Indust1Y Conglomerate

Founded 8 May 1973; 48 years ago

Founder Dhimbhai Ambani

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Mukesh Ambani (Chairman & MD)

Products Petroleum, Natural gas, Petrochemicals, Textiles, Retail, Telecommunications,

Media, Television, Entertainment, Music, Financial Services, Software

Revenue Decrease æ502,653 crore (USS70 billion) (2021)

Operating income Decrease 06,134 crore (USSII billion) (2021)

Net income Increase R53,223 crore (USS7.5 billion) (2021)

Total assets Increase crore (USSI 90 billion) (2021)

Total equity Increase æ693,727 crore (USS97 billion) (2021)

Owner Mukesh Ambani (50.54%)

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Number of employees 236,334 (2021)

Subsidiaries Jio Platforms

Jio Payments Bank (70%)
Reliance Retail
Reliance Petroleum
Network 18 Group (64%)
Mumbai Indians
Alok Industries
Future Group Reliance Foundation

Website http://www.ril.com/

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History
1960-1980
The company was co-founded by Dhimbhai Ambani and Chamanlal Damani in 1960's as Reliance Commercial
Corporation. In 1965, the partnership ended and Dhimbhai continued the polyester business of the finn. In 1966,
Reliance Textiles Engineers Pvt. Ltd. was incorporated in Maharashtra. It established a synthetic fablics mill in
the same year at Naroda in Gujarat. On 8 May 1973, it became Reliance Industries Limited. In 1975, the company
expanded its business into textiles, with "Vimal" becoming its major brand in later yea The company held its
Initial public offering (IPO) in 1977. The issue was over-subscribed by seven times. In 1979, a textiles company
Saidpur Mills was amalgamated with the company. In 1980, the company expanded its polyester yarn business
by setting up a Polyester Filament Yam Plant in Patalganga, Raigad, Maharashtra with financial and technical
collaboration with E. I. du Pont de Nemours & Co., U .S.
1981-2000
In 1985, the name of the company was changed from Reliance Textiles Industlies Ltd. to Reliance Industlies Ltd.
During the years 1985 to 1992, the company expanded its installed capacity for producing polyester yarn by over
tonnes per annum.
The Hazi17 petrochemical plant was commissioned in 1991—92.
In 1993, Reliance tumed to the overseas capital markets for funds through a global depository issue of Reliance
Petroleum. In 1996, it became the first private sector company in India to be rated by international credit rating
agencies. S&P rated Reliance "BB+, stable outlook, constrained by the sovereign ceiling". Moody's rated "Baa3,
Investment grade, constrained by the sovereign ceiling"
In 1995/96, the company entered the telecom industry through a joint venture with NYNEX, USA and promoted
Reliance Telecom Private Limited in India.
In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance Gas.
The years 1998—2000 saw the construction of the integrated petrochemical complex at Jamnagar in Gujarat, the
largest refinery in the world.
2001 onwards
In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest companies in terms of
all major financial paramete In 2001—02, Reliance Petroleum was merged with Reliance Industries.
In 2002, Reliance announced India's biggest gas discovery (at the Krishna Godavari basin) in nearly three decades
and one of the largest gas discoveries in the world dtlling 2002. The in-place volume of natural gas was in excess
of 7 trillion cubic feet, equivalent to about 120 crore (1.2 billion) banes of crude oil. This was the first ever
discovery by an Indian private sector company.
In 2002—03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL), India's second
largest petrochemicals company, from the government of India, RIL took over IPCL's Vadodara Plants and
renamed it as Vadodara Manufacturing Division (VMD). IPCL's Ngotwane and Dahen manufacturing complexes
came under RIL when IPCL was merged with RIL in 2008.
In 2005 and 2006, the company reorganised its business by demerging its investments in power generation and
distribution, financial services and telecommunication services into four separate entities.

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In 2006, Reliance entered the organised retail market in India with the launch of its retail store format under the
brand name of 'Reliance Fresh'. By the end of2008, Reliance retail had close to 600 stores across 57 cities in
India.

In November 2009, Reliance Industries issued I : I bonus shares to its shareholder

In 2010, Reliance entered the broadband services market with acquisition of Intel Broadband Services Limited,
which was the only successful bidder for pan-India fourth-generation (4G) spectrum auction held by the
government of India.
In the same year, Reliance and BP announced a partner-ship in the oil and gas business. BP took a 30 per cent
stake in 23 oil and gas production sharing contracts that Reliance operates in India, including the KG- D6 block
for $7.2 billion. Reliance also fanned a 50:50 joint venture with BP for sourcing and marketing of gas in India.
In 2017, RIL set up a joint venture with Russian Company Sabur for setting up a Butyl rubber plant in Jamnagar,
Gujarat, to be operational by 2018.
In August 2019, Reliance added Find primarily for its consumer businesses and mobile phone services in the e-
commerce space.

Reliance Industries Limited operates world—class manufacturing facilities across the country at Allahabad,
Barabanki, Dahej, Dhenkanal, Hazira, Hoshiamur, Jamnagar, kurkumbh, Nagothane, Nagpur, Naroda,
Patalganga, Silvassa and Vadodara.
Subsidiaries of Reliance Industries
Reliance Group has 158 + subsidimy companies and 7 associate companies. Here are some of the most popular
Reliance Industlies Subsidiaries:
Jio Platforms

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Jio is essentially a technology company that is a majority-owned subsidiary of
reliance industlies. It is one of the top reliance subsidiary companies lists. It
was announced in October 2019 and has all digital initiatives and the
telecommunication assets being housed under it. This new subsidiary holds all
the digital business assets including Reliance Jio Infocomm Ltd.
Jio Infocomm in turn holds the Jio connectivity business which includes Mobile,
broadband and entelprise, and also the other digital assets. Jio apps are the tech
backbone and investment in other tech entities like
Haptic, Hathaway, and Den networks among othe In April 2020, reliance
announced a strategic investment of {43,574 crores by Facebook into the Jio Platform. This investment translated
into a 9.99% equity stake, on a fully diluted basis. Further in May 2020, reliance sold roughly 1.15% stake in Jio
Platforms for U,656 crores to the American private equity investor, Silver lake partner. Intel became the 12th
company to invest in reliance Jio platfonn after it invested 1,894.50 crores. In July 2020 google announced that
it will acquire a 7.7% stake in the Jio platfonn for 03, 737 crores.
Reliance Retail
Reliance Retail is the retail business wing of Reliance Industries. In March 2013, it had 1466 stores in India. It
is the largest retailer in India as it includes many brands like Reliance Fresh, Reliance Footprint, Reliance Time
Out, Reliance Wellness, Reliance Trends, Reliance Autozone, Reliance Mart, Reliance iStore.Reliance Home
kitchen, Reliance Home Kitchens, Reliance Market (cash n can-y), and Reliance Jewels all come under the
banner of Reliance Retail brand. Its annual income revenue for the financial

Reliance RelianceMART
RelianceSuper
Reliance

Reliance

Reliancefrerh
Reliancedigital
iStore
Reliance Time@'JU

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 Reliance Life Science
This company works around medical, plant, and industlial biotechnology opportunities. It specializes in the
manufacturing, branding, and marketing of Reliance
Industlies products
Biophannaceuticals, clinical research services,
regenerative medicine, molecular medicine, novel
therapeutics, biofuels, plant biotechnology, and
industlial biotechnology sectors of the medical
business industry Reliance Institute of life science
(RILS) was established by Dhimbhai Ambani
Foundation as it is an institution offering higher
education in various fields of life science and related technologies.
Reliance Logistics
It is a single-window company selling transportation,
distribution, warehousing, logistics, and supply
chainrelated products. Reliance Logistics is an asset-
based company with its own fleet and infrastructure. It
provides logistics services to Reliance group subsidiaries
and outside Merged content from Reliance Logistics to
here.
Reliance
Clinical
Research
Services
(RCRS
It is a contract research organization (CRO) and a wholly- owned
subsidiary of Reliance Life Science, specializes in the clinical
research services
industry. Its clients are primarily phannaceutical,
biotechnology, and medical device companies.
The solar energy' subsidiary of Reliance was established to
produce and retail solar energy systems primarily to remote
and rural areas. It offers a range of products based on solar
energy, solar lantem, home lighting systems, street lighting

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Network 18
In the mass media company, it has interests in television,
digital platfonns, publication, mobile apps, and films. It also
operates two joint ventures namely Viacom 18 and History
TV 18 with Viacom and A+E Network respectively. It also
has acquired ETV Network and since renamed its channels
under the Colors TV bland.
Relicord
This is a subsidiary for cord blood banking service which is
owned by Reliance Life science. It was established in 2002
and has been inspected and accredited by AABB and also has
been accorded a license by the Food and I)mg Administration (FDA) Government of India.

Reliance Jio Infocomm Limited (RJIL)

Previously known as Infotel Broadband, is a broadband service provider which
gained 4G licenses for operating across India.
Reliance Industrial Infrastructure
Limited (RIIL)
It is an associate company of Reliance Industries. It holds 45.43% of
the total shares of Reliance Industries. It mainly engages in the
business of setting up and operating industrial infrastmcture. The
company is also engaged in related activities involving leasing and
providing services connected with computer software and data
processing.
The company set up a 200-millimeter diameter twin pipeline system
that connects the Bharat petroleum refinery at Mahul, Maharashtra.
The infrastmcture company constmcted a 71,000kilolitre petrochemical product storage and distribution tenninal
at the Jawaharlal Nehru Port Trust (JNPT) Area in Maharashtra.
Reliance Eros Productions LLP

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1--1as a joint venture with Eros Intemational to produce film content in India.
Reliance
Industries Limited
LYF
It is a well-known 4G enabled Volte device brand from Reliance Retail. It is one of a Jio reliance subsidiaries,
the consumer electronics arm of Reliance Industries Limited.
MANAGEMENT - RELIANCE INDUSTRIES

Name Designation

Mukesh D Ambani Chainnan & Managing Director

Pawan Kumar Kapil Executive Director

Hital R Meswani Executive Director

Yogendra P Tlivedi Non Executive Director

Raghunath A Mashelkar Non Executive Director

Raminder Singh Gujral Non Executive Director

Arundhati Bhattacharya Non Executive Director

P M S Prasad Executive Director

Nikhil R Meswani Executive Director

Nita M Ambani Non Executive Director

Dipak C Jain Non Executive Director

Adil Zainulbhai Non Executive Director

Shumeet Banerji Non Executive Director

k V Chowdmy Non Executive Director

Objective of Financial Analysis

The term 'financial analysis', also known as analysis and interpretation of financial statements', refers to the
process of detennining financial strengths and weaknesses of the finn by establishing strategic relationship
between the items of the balance sheet, profit and loss account and other operative data.
The primary objective of financial statement analysis is to understand and diagnose the information contained in
financial statement with a view to judge the profitability and financial soundness of the finn, and to make forecast
about future prospects of the finn- The purpose of analysis depends upon the person interested in such analysis
and his object.
However, the following pmposes or objectives of financial statements analysis:

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(i) To assess the earning capacity or profitability of the firm.

(ii) To assess the operational efficiency and managerial effectiveness.

(iii) To assess the short term as well as long term solvency position of the firm.

(iv) To identify the reasons for change in profitability and financial position of the firm.

(v) To make inter-firm comparison.

(vi) To make forecasts about future prospects of the firm.

(vii) To assess the progress of the firm over a period of time.

(viii) To help in decision making and control.

(ix) To guide or determine the dividend action.

(x) To provide important information for granting credit

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Balance Sheet
As at 31st March, 2021-2020
(R in crore)
As at As at 31st As at 31st
31st March, 2021 March, 2020 March, 2019
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment
Capital Work-in-Progress 20,765 15,638
Intangible Assets 14,741 8,624 8,293
Intangible Assets Under Development 12,070 12,327 6,402
Financial Assets
Investments
Loans 65,698 44,348 31,806
Other Non-Current Assets 4,968 4,458 4,287
Total Non-Current Assets
CURRENT ASSETS
Inventories 37,437 38,802 44,144
Financial Assets
Investments 94,665 70,030 59,640
Trade Receivables 4,159 7,483 12,110
Cash and Cash Equivalents 5,573 8,443 3,768
Loans 993 15,028 4,876
Other Financial Assets 59,560 16,100 17,127
Other Cunent Assets 8,332 10,711 11,199
Total Current Assets
Total Assets

EQUITY AND LIABILITIES

EQUITY
Equity Share Capital 6,339 6,339
Other Equity

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 Total Equity
LIABILITIES
Non-Cun•ent Liabilities
Financial Liabilities
Bon-owings
Other Financial Liabilities 2,924
Provisions 1,499 1,410 2,483
Defen•ed Tax Liabilities (Net) 30,788 50,556 47,317
Other Non-Cunent Liabilities 504 504 504
Total Non-Current Liabilities
Current Liabilities
Financial Liabilities
Borrowings 33,152 51,276 39,097
Trade Payables Due to:
Micro and Small Enterprise 90 1 16 229
Other Than Micro and Small Enterprise 86,909 70,932 88,012
Other Financial Liabilities 61,172 27 ,675
Other Cun•ent Liabilities 19,563 66,169 46,225
Provisions 901 1,072 783
Total Current Liabilities
Total Liabilities 3,70,423
Total Equity and Liabilities

Statement of Profit and Loss

For the year ended 31st March, 2020-2021
(R in crore)
2020-21 2019-20 2018-19
Income
Value of Sales
Income from Services 2,759 3,308 I ,444
Value of Sales & Services (Revenue) (gross)

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Revenue from Operations (net) 245,667 336,953 371,616
Other Income 14,818 13,566 8,822
Total Income 260,485 350,519 380,438
Expenses
Cost of Material Consumed 2,37 ,342
Purchase of Stock-in-Trade 7,301 7,292 8,289
Changes in Invent01ies of Finished Goods, Work-inProgress 610 77 (3,294)
and Stock-in-Trade
Employee Benefits Expense 5,024 6,067 5,834
Finance Costs 16,211 112,105 9,751
Depreciation/Am01tisation and Depletion Expense 9,199 9,728 10,558
Other Expenses 30,970 133,347 36,645
Total Expenses 237,577 1305,958 333,071
Profit Before Exceptional Item and Tax 22,908 144,561 47,367
Exceptional Item (Net of Tax) (4,245)
Profit Before Tax* 27,212 140,316 47,367
Tax Expenses*
Current T ax 7,200 9,440
Defen•ed Tax (4,732) 2,213 2,764
Profit for the Year 31,944 130,903 35,163
Other Comprehensive Income
i. Items that will not be reclassified to Profit or Loss 350 (392) 76,892
ii. Income tax relating to items that will not be reclassified to (79) (944) (16,569)
Profit or Loss
iii. Items that will be reclassified to Profit or Loss 2,755 (6,921) (827)
iv. Income tax relating to items that will be reclassified to (456) 1,183 178
Profit or Loss
Total Other Comprehensive Income/(Loss) for the Year (Net 2,570 (7,074) 59,674
of Tax)
Total Comprehensive Income for the Year 34,514 23,829 94,837

Earnings Per Equity Share of Face Value of RIO each

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 Basic (in R) — After Exceptional Item 49.66 48.42 55.48
Basic (in R) — Before Exceptional Item 42.97 55.07 55.48
Diluted (in R) — After Exceptional Item 48.90 48.42 55.47
Diluted (in R) — Before Exceptional Item 42.31 55.07 55.47
*Profit before tax is after Exceptional Item and tax thereon. Tax expenses are excluding the Current Tax an
Defened Tax on Exceptional Item.
Cash Flow Statement
For the year ended 31st March, 2020-2021

CASH FLOW OF RELIANCE INDUSTRIES (in cr.) WAR 21 MAR 20 MAR 19

12 mths 12 mths 12 mths

NET PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS 27,212.00 0,316.00 7,367.00

AND TAX

Net CashFIow From Operating Activities -512.00 77,533.00 29,191.00

Net Cash Used In Investing Activities 74,257.00 -143,625.00 -53,949.00

Net Cash Used From Financing Activities -76,657.00 70,767.00 25,795.00

Foreign Exchange Gains / Losses 0.00 0.00 0.00

Adjustments On Amalgamation Merger Demerger Others 0.00 42.00 0.00

NET INC/DEC IN CASH AND CASH EQUIVALENTS -2,912.00 4,717.00 1,037.00

Cash And Cash Equivalents Begin of Year 8,485.00 3,768.00 2,731.00

Cash And Cash Equivalents End Of Year 5,573.00 8,485.00 3,768.00

RESULTS AT A GLANCE (FY20 VS FY21)
STANDALONE - RIL
• Revenue for the year was 278,940 crore ($ 38.2 billion) lower by 23.8%
• EBITDA for the year was 48,318 crore ($ 6.6 billion) lower by 27.2%
• Net Profit for the year was 31,944 crore ($ 4.4 billion) higher by 3.4%
• Cash Profit for the year was 36,411 crore ($ 5.0 billion) lower by 15.0%
• Exports for the year was 145,143 crore ($ 19.9 billion) lower by 28.2%
Notes
l. The figures for the corresponding previous period have been regrouped / reclassified wherever necessary,to
make them comparable. The figures for quarter ended March 31, 2021 are balancing figures between the audited
figures of the full financial year and the reviewed year-to-date figures up to the third quarter of the financial year.

14 | P a g e
2. The outbreak of Corona virus (COVID-19) pandemic globally and in India is causing significant disturbance
and slowdown of economic activity. The Company's operations and revenue during the period were impacted
due to COVID-19. The Company has taken into account the possible impact of COVID-19 in preparation of the
audited standalone financial results, including its assessment of recoverable value of its assets based on internal
and external information upto the date of approval of these audited standalone financial results and current
indicators of future economic conditions.
3 -Total Non-Convertible Debentures of the Company outstanding (before netting off of prepaid finance charges)
as on March 31, 2021are 66,665 crore out of which, secured non-convertible debentures are crore.
The Secured Non-Convertible Debentures of the Company aggregating 13,351 crore as on March 31, 2021
Dilling the year, the Company issued listed Unsecured Non-Convefiible Redeemable Debentures amounting to
24,955 crore in four tranches (Senes K, L, M and N) on private placement basis and redeemed listed Unsecured
Non-Conveltible Redeemable Debentures amounting to 12,000 crore (PPD Sefies B, C, E, F, PPDI and PPD2)
and listed Secured NonConvertibIe Redeemable Debentures amounting to 500 crore (Series PPI) -180 Tranche
1).
Further, during the year, the Company received payment of 3rd tranche, aggregating ' 500 crore, from the holders
of partly paid listed Unsecured Non-Conveltible Redeemable Debentures (PPD Series -IA).

4. Formulae for computation of ratios are as follows — Eamings before Interest, Tax and Exceptional Items
Debt Service Coverage Ratio Interest Expense + Principal Repayments made during the period for long tenn
loans
Interest Sewice Coverage Ratio Eamings before Interest, Tax and Exceptional Items Interest Expense
Debt / Equity Ratio Total Debt
Equity

5. Total Debt represents Current Borrowings, Non-Current Borrowings and Current maturities of
NonCurrent Borrowings. Equity represents Equity Share Capital and Other Equity The Company had issued
42,26,26,894 partly paid-up equity shares of face value of 10 each on Rights basis ('Rights Equity Shares'), at
1,257 per Rights Equity Share (including a premium of 1,247 per Share). In accordance withthe terms of issue,
314.25 i.e. 25% of the Issue Price per Rights Equity Share, was received from the concerned allottees on
application and shares were allotted. The Board has made two call(s) i.e. First call of
'
314.25 per Rights Equity Shares (including a premium of ' 311.75 per share) and Second & final call of 628.50
per Rights Equity Shares (including a premium of ' 623.50 per share) on shareholders. Accordingly, an amount
of' 39,843 crore has been accounted as part of Other Financial Asset as "Call Money Receivable on Rights Issue"
with a corresponding credit to Other Equity as "Share Call Money account".

6. During FY 2024, there was an exceptional loss of 4,245 crore (net of tax of 899 crore) (relating t002C
segment) due to substantial drop in oil prices accompanied with unprecedented demand destruction.

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 886.83
BVPS
639.41

96.9530 48.4 49
100 8 2 66
55_48
50
736.
20
2 O
18
20 202 201 201 202 202
19 1 7 8 2019 0 1

Ratio Analysis
The financial analysis helps in knowing the financial perfonnance of the company. It also helps the company to
predict the future profits and to take corrective measures to achieve them. The study is to analysis the financial
performance of Reliance Industries Limited (RIL) for a period of three year The objective of the study is to
detennine the liquidity, profitability and tumover rate of RIL. The tool used to analysis the financial position of
the company is Ratio analysis. The tool helps in comparing the financial status of the current year with past years
and also in providing few suggestions with which the company canimprove to do better in the future. The data
are collected from the secondary sources like annual reports, company websites and other reliable sites. From
the analysis, we find that the company is laggmg in variousareas. Improving which will help the company to

16 | P a g e
achieve its ideal ratios. The profitability and tumover 17tios are better when compared to liquidity ratios. The
company was able to achieve the ideal ratios of profitability in few years but could not achieve the liquidity ratios
even for a single year. Also the working capital tumover has been negative for all the three year The company
must improve to bring the working capital to a positive rate by decreasing its cun•ent liabilities. The current
liabilities have always been more than the cun•ent assets which is not good for the company.
Types of Ratio Analysis :-
I . Liq uidity Ratios
2. Profitability Ratios
3. Activity Rations or Turnover Ratios
4. Solvency Ratios
Liquidity Ratios
This type ofratio helps in measuring the ability ofa company to take care of its short-tenn debt obligations. A
higher liquidity ratio represents that the company is highly lich in cash.
1. Current Ratio
The cun•ent ratio is the ratio between the cun•ent assets and cun•ent liabilities of a company. The cun•ent ratio
is used to indicate the liquidity of an organization in being able to meet its debt obligations in the upcoming
twelve months. A higher current ratio will indicate that the organization is highly capable of repaying its short-
tenn debt obligations.
Current Ratio = Current Assets / Current Liabilities
In 2021 Cun•ent Rat10
In 2020 Current Rat10• - 166597 /310183
In 2019C111Tent Rat10• - 152864 / 202021
Current Ratio
1.04
053
2019
1 2 3
Current Ratio 1.04 0.53 0.76 Years 2021 2020 2019
(values are in in crore)
The Current Ratio of the company is
1.04:1 that is less than the ideal ratio 2:1. From the
graph we find that the last two years the current ratio
rises and then decline. So we can say that the
company sh01t-tenn financial position is not good.

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11. Quick Ratio
The quick ratio is used to ascertain information pertammg to the capability of a company in
paymg off its current liabilities on an immediate basis.
Quick Ratio = Liquid Asset / Current Liabilities
Liquid Assets = Current Assets — (Stock or inventories + prepaid expenses)
In 2021 Quick Ratio = 173282 + 201787 => 0.86:1 (values are in in crore)
In 2020 Quick Ratio = 127795 + 310183 => 0.39:1
In 2019 Quick Rat10• = 108720+ 202021
Quick Ratio
The Quick Ratio of the company is 0.86:1 which is less than 1:1. From the graph we find that
the last two years the quick ratio first rises then
decline. So we can say that the company is not in the
position to pay its current liabilities instantly.
Quick Ratio

Years
Profitability Ratios
This type of ratio helps in measuring the ability of a
company in eaming sufficient profits.
1. Gross Profit Ratios
Gross profit ratios are calculated in order to represent the operating profits of an organization
after making necessary adjustments pertaining to the COGS or cost of goods sold.
Gross Profit Ratio = (Gross Profit / Net Sales) * 100
In 2021 Gross Profit Rat10• -(88,896/ (values are in in crore)
In 2020 Gross Profit Rat10
In 2019 Gross Profit Rat10• -(115218 / 385501)x

Gross Profit Ratio

11. Net Profit Ratio

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Net profit ratios are calculated in order to determine the overall profitability of an organization
aft reducing both cash and non-cash expenditures.
Net Profit Ratio = (Net Profit / Net Sales) * 100
In 2021 Net Profit Ratio = (31,944 / 245667) x 100 => 13.00 % In 2020 Net Profit Ratio =
(30,903 / 336953) x 100 9.17 %
In 2019 Net Profit Ratio = (35163 / 371616) x 100=> 9.46 %
Net Profit Ratio

2021 • 2020 •2019

111. Operating Ratio
In finance, the Operating ratio is a company's operating expenses as a percentage of revenue.
This financial ratio is most commonly used for industries which require a large percentage of
revenues to maintain operations. The operating ratio can be used to determine the efficiency of
a company's management by comparing operating expenses to net sales. It is calculated by
dividing the operating expenses by the net sales. The smaller the ratio, the greater the
organization's ability to generate profit. The ratio does not factor in expansion or debt
repayment.
Operating Ratio Formula = Cost of Goods Sold + Operating Expenses / Ne Sales* 100
In 2021 Operating Rat10• - (237,577 / In 2020
Operating Rat10
In 2019 Operating Rat10• -(333,071 /
Operating Ratio

Activity Rations or Turnover Ratios

Tumover ratios are used to determine how efficiently the financial assets and liabilities of an
organization have been used for the pumose of generating revenues.
Inventory Turnover Ratio

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Inventory tumover ratio is used to detennine the speed of a company in converting its
inventories into sales.
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventories
In 2021 Inventory Tumover Ratio = 176173 / 27356 => 6.44 times
In 2020 Inventory Tumover Ratio = 244711 / 28143 => 8.68 times
In 2019 Inventory Tumover Ratio = 270283 / 36098 => 7.48 times
Inventory Turnover Ratio
10
8
6
4
2021 2020 2019
Inventory Turnover Ratio Linear (Inventory Turnover Ratio )
ll. Fixed Assets Turnover Ratio
Fixed assets turnover ratio is used to detennine the efficiency of an organization in utilizing its
fixed assets for the purpose of generating revenues.
Fixed Assets Turnover Ratio = Net Sales / Average Fixed Assets
In 2021 Fixed Assets Tumover Ratio 245667 / 330469 0.74 times
In 2020 Fixed Assets Tumover Ratio 336953 / 324708 1.03 times
In 2019 Fixed Assets Tumover Ratio 371616 / 304187 1.22 times
Fixed Assets Turnover Ratio
1.5

1
2021 2020 2019
Fixed Assets Tumover Ratio
Linear (Fixed Assets Turnover Ratio )
Solvency Ratios
Solvency ratios can be defined as a type of ratio that is used to evaluate whether a company is
solvent and well capable of paying off its debt obligations or not.

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l. Debt Equity Ratio
The debt-equity ratio can be defined as a ratio between total debt and shareholders fund. The
debtequity ratio is used to calculate the leverage of an organization. An ideal debt-equity ratio
for an organization is 2:1.
Debt Equity Ratio = Total Debts / Shareholders Fund
In 2021 Debt Equity Ratio = 193,750 / 474,483 => 0.41:1 In 2020 Debt Equity Ratio = 230,027
/ 424,584 => 0.54:1
In 2019 Debt Equity Ratio = 157,195 / 405,322 => 0.39:1
Debt Equity Ratio

1
debt equity ratio 0.41 0.54 0.39
year 2021 2020 2019

KEY FINANCIAL RATIOS OF RELIANCE MAR 21 MAR 20 MAR 19

INDUSTRIES (in cr.)

PER SHARE RATIOS

Basic EPS ( 49.66 48.42 55.48

Diluted EPS ( ) 48.90 48.72 55.47

Cash EPS 8 ) 63.84 64.10 72.13

Book Value [Excl Reval Resewe]/Share ( ) 736.20 617.15 639.41

Book Value [Incl Reval Reserve]/Share ( ) 736.20 617.15 639.41

Dividend / Share( ) 7.00 6.50 6.50

Revenue from Operations/Share ( ) 381.17 531.56 586.24

PBT/Share ( ) 42.22 63.60 74.72

Net Profit/Share ( ) 49.56 48.75 55.47
PROFITABILITY RATIOS

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 PBDIT Margin (%) 19.66 19.70 18.21
PBIT Margin (%) 15.92 16.81 15.37
PBT Margin (%) 11.07 11.96 12.74
Net Profit Margin (%) 13.00 9.17 9.46
Return on Netwolth / Equity (%) 6.73 7.89 8.67
Return on Capital Employed (%) 5.82 8.84 9.95
Return on Assets (%) 3.65 3.18 4.53
Total Debt/Equity (X) 0.41 0.65 0.39
Asset Turnover Ratio (%) 28.11 34.67 47.90
LIQUIDITY RATIOS
Cun•ent Ratio (X) 1.04 0.50 0.76
Quick Ratio (X) o. 86 0.39 0.54
Inventory Tumover Ratio (X) 6.56 8.68 8.42
Dividend Payout Ratio (NP) (%) 12.27 12.46 10.10
Dividend Payout Ratio (CP) (%) 9.53 9.48 7.77
Earnings Retention Ratio (%) 87.73 87.54 89.90
Cash Earnings Retention Ratio (%) 90.47 90.52 92.23
VALUATION RATIOS
Entell)lise Value (Cr.) 1,479,239.40 950,998.06
EV/Net Operating Revenue (X) 6.02 2.82 2.74
EV/EBITDA (X) 30.61 14.32 15.03
MarketCapNet Operating Revenue (X) 5.26 2.09 2.33
Retention Ratios (%) 87.72 87.53 89.89
Plice/BV (X) 2.72 1.80 2.13
Plice/Net Operating Revenue 5.26 2.09 2.33
Eamings Yield 0.02 0.04 0.04
Reliance Industries Limited Report on the Audit of the Standalone Financial
Statements
We have audited the accompanying Standalone Financial Statements of Reliance Industries
Limited ("th Company") which includes joint operations, which comprise the Balance sheet as

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at March 31, 2021, th Statement ofProfit and Loss, including the statement ofOther
Comprehensive Income, the Cash Flow Statemen and the Statement ofChanges in Equity for
the year then ended, and notes to the Standalone Financial Statements including a summary of
significant accounting policies and other explanatory infonnatiom
In our opinion and to the best of our infonnation and according to the explanations given to us,
the aforesaid Standalone Financial Statements give the infonnation required by the Companies
Act, 2013, as amended ("the Act") in the manner so required and give a true and fair view in
confonnity with the accounting principles generally accepted in India, of the state of affairs of
the Company as at March 31, 2021, its profit including other comprehensive income, its cash
flows and the changes in equity for the yearended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the
Standards on Auditing (SAS), as specified under Section 143(10) of the Act.
Our responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Statements section of our report. We
are independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant to
our audit of the financial statements under the provisions of the Act and the Rules thereunder,
and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand
appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Emphasis of Matter
We draw attention to Note 31(b) and 41.1 of the financial statements in respect of the Scheme
of
Amalgamation of wholly-owned subsidiaries with the Company approved by the Honble
National Company Law Tribunal, Mumbai, wherein the financial information has been restated
from the appointed date and not from the earliest date presented in accordance with Ind AS
103, as per General Circular No. 09/2019 issued by MCA dated August 21, 2019 and loss due
to take over of borrowing and consequential adjustment for reversal thereof in the statement of
profit and loss upon the Scheme becoming effective.
Our Opinion is not modified in respect of this matter. Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were ofmost
significance in our audit of the Standalone Financial Statements for the financial year ended
March 31, 2021. These matters were addressed in the context of our audit of the Standalone
Financial Statements as a whole, and in fonningour opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be
communicated in our report. We have fulfilled the responsibilities described in the Auditors
responsibilities for the audit of the Standalone Financial Statements section of our report,
including in relation to these matters. Accordingly, our audit included the perfonnance of

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procedures designed to respond to our assessment of the risks of matefial misstatement of the
Standalone Financial Statements. The results of our audit procedures, including the procedures
pelfonned to address the matters below, provide the basis for our audit opinion on the
accompanying Standalone Financial Statements.
Reliance Industries SWOT Analysis
Strengths of Reliance Industries — Internal Strategic Factors
Successful track record of integrating complimentary firms through mergers &
acquisition. It has successfully integrated number of technology companies in the past
few years to streamline its operations and to build a reliable supply chain.
Strong dealer community — It has built a culture among distributor & dealers
where the dealers not only promote company's products but also invest in training the
sales team to explain to the customerhow he/she can extract the maximum benefits out
of the products.
Strong Free Cash Flow — Reliance Industries has strong free cash flows that
provide resources in the hand of the company to expand into new projects.
Strong Brand Portfolio — Over the years Reliance Industries has invested in
building a strong brand portfolio. The SWOT analysis of Reliance Industries just
underlines this fact. This brand portfolio can be extremely useful if the organization
wants to expand into new product categories. Strong distribution network —Over the
years Reliance Industries has built a reliable distribution network that can reach
majority of its potential market.
Automation of activities brought consistency of quality to Reliance Industries
products and has enabled the company to scale up and scale down based on the demand
conditions in the market.
Good Returns on Capital Expenditure — Reliance Industries is relatively
successful at execution of new projects and generated good returns on capital
expenditure by building new revenue streams.
Successful track record of developing new products — product innovation.
Weakness of Reliance Industries — Internal Strategic Factors
Weakness are the areas where Reliance Industries can improve upon. Strategy is about making
choices and weakness are the areas where an organization can improve using SWOT analysis
and build on its competitive advantage and strategic positioning.

• Days inventory is high compare to the competitors — making the company raise
more capital toinvest in the channel. This can impact the long term growth of Reliance
Industries

• Financial planning is not done properly and efficiently. The current asset ratio
and liquid asset ratios suggest that the company can use the cash more efficiently than
what it is doing at present.

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 • Limited success outside core business — Even though Reliance Industries is
one of the leading organizations in its industry it has faced challenges in moving to
other product segments with itspresent cultu re.

• Need more investment in new technologies. Given the scale of expansion and
different geographies the company is planning to expand into, Reliance Industries
needs to put more money in technology to integrate the processes across the board.
Right now the investment in technologies is not at par with the vision of the company.

• Investment in Research and Development is below the fastest growing players

in the industry. Even though Reliance Industries is spending above the industry average
on Research and Development, The marketing of the products left a lot to be desired.
Even though the product is a success in terms of sale but its positioning and unique
selling proposition is not clearly defined which can lead to the attacks in this segment
from the competitors.
Opportunities for Reliance Industries — External Strategic Factors
The new technology provides an opportunity to Reliance Industries to practices
differentiated pricing strategy in the new market. It will enable the firm to maintain its
loyal customers with great service and lure new customers through other value oriented
propositions.
New customers from online channel — Over the past few years the company
has invested vast sum of money into the online platform. This investment has opened
new sales channel for Reliance Industries. In the next few years the company can
leverage this opportunity by knowing its customer better and serving their needs using
big data analytics.
Organization's core competencies can be a success in similar other products
field. A comparative example could be - GE healthcare research helped it in developing
better Oil drilling machines.
Opening up of new markets because of government agreement —the adoption
of new technology standard and government free trade agreement has provided
Reliance Industries an opportunity toenter a new emerging market.
The new taxation policy can significantly impact the way of doing business and
can open new opportunity for established players such as Reliance Industries to
increase its profitability.
New environmental policies — The new opportunities will create a level
playing field for all the players in the industry. It represent a great opportunity for
Reliance Industries to drive home itsadvantage in new technology and gain market
share in the new product category.
Economic uptick and increase in customer spending, after years of recession
and slow growth rate inthe industry, is an opportunity for Reliance Industries to capture
new customers and increase its market share.

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 Decreasing cost of transportation because of lower shipping prices can also
bring down the cost ofReliance Industries's products thus providing an opportunity to
the company - either to boost its profitability or pass on the benefits to the customers
to gain market share.
Threats Reliance Industries Facing - External Strategic Factors

• Increasing trend toward isolation ism in the American economy can lead to
similar reaction from other government thus negatively impacting the international
sales.

• New technologies developed by the competitor or market disruptor could be a

serious threat to theindustry in medium to long term future.

• Rising pay level especially movements such as $15 an hour and increasing
prices in the China can lead to serious pressure on profitability of Reliance Industries

• The demand of the highly profitable products is seasonal in nature and any
unlikely event during thepeak season may impact the profitability of the company in
short to medium term.

• Growing strengths of local distributors also presents a threat in some markets

as the competition ispaying higher margins to the local distributors.
Problems Faced by Reliance Industries during Covid19
RIL net drops 37% on virus, oil impact
Firm announces rights issue at æl ,257 apiece, share ratio is 1:15; Aramco deal worth $15
billion ontrack
Reliance Industries (RIL) on Thursday reported a sharp 37.2% dip in its fourth quarter net profit
to {6,546 crore, dragged down by an exceptional item of U,245 crore, mainly on account of
the impact of the COVID-19 pandemic, inventory losses due to fall in crude oil prices and an
incremental liability towards licence fees.
Profitability from the company's core businesses of refining, petrochemicals, oil and gas fell
while retail and telecommunications offset some of the losses from other segments.
The company's revenue from operations stood at Rs 116,195 crore, down 24 per cent from the
year ago revenue of Rs 153,384 crore.
RIL announced a rights issue of {53,125 crore at ,257 per share with the share ratio pegged at
I :15.
Revenue fell 2.5% to {1,51 ,209 crore but EBITDA increased by 7.6% to {25,886 crore.
Reliance Industries' chairman and managing director Mukesh Ambani said, "Our consumer
businesses further strengthened their leadership positions and recorded robust growth on all
operating and financial parameters during the year. Both Retail and Jio continue to work
towards providing superior products and services to Indian consumers."

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We are fully committed on our investment plans in our consumer businesses and new
initiatives. We are at the doorstep of a huge opportunity and our rights issue and all other equity
transactions will strengthen Reliance and position us to create substantial value for all our
stakeholders.
The outbreak of corona virus pandemic globally and in India is causing significant disturbance
and slowdown of economic activity. The group's operations and revenue during the quarter
were impacted due to COVID-19.
Retail revenue declined 5 per cent year-on-year to Rs 39, 199 crore.
Much of India's businesses were hugely impacted in the April-June quarter due to the
nationwide lockdown that was announced by the govemment. As the country has continued to
unlock over the past few months, things have begun to rebound.
In the retail business, RIL said that 85 per cent of its stores were fully or partially open during
the quarter. While, footfalls were recovering, they are still lower than pre-COVID levels,
particularly across fashion and lifestyle verticals and outlets in malls.
Conclusion
After writing this report I have understood how reliance industries have come up in such a
highly competitive market like in India and also they were able to establish their name in
intemational market also. Fonn this report we can see that the company is not just focusing on
one industry whereas it has many subsidiafies and associates which helping them to be stable
when the economy is down.
From the table is clear that in all the areas like market capital, sales turnover, net profit and also
total asset, reliance have a very high position with a remarkable difference in their respective
values. While we analyse the competition we can detennine that the company possess a
dominancy over the market. It is very difficult for the competitors to come over the reliance
position. Considering the fact that the company profit is from the market it is important for
reliance to maintain this status with more marketing strategies.
• Revenue for the year was 278,940 crore ($ 38.2 billion) lower by 23.8%
• EBITDA for the year was 48,318 crore ($ 6.6 billion) lower by 27.2%
• Net Profit for the year was 31,944 crore ($ 4.4 billion) higher by 3.4%
• Cash Profit for the year was 36,411 crore ($ 5.0 billion) lower by 15.0%
• Exports for the year was 145,143 crore ($ 19.9 billion) lower by 28.2%

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Sources
https://www.ril.com/getattachment/57c07cd8-3cba-457b-a972-
c02524dfi9b6/AnnualRep01t_2020-21.aspx
https://www.ril.com/getattachment/2536b55c-c47b-4dab-b499I
%20Mar
.aspx
https://www.moneycontroI.com/india/stockpricequote/refineries/relianceindustries/RI
https://en.wikipedia.org/wiki/Reliance_Industries
https://economictimes.indiatimes.com/reliance-industries-ltd/stocks/companyid-13215.cms

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