Presentation on Reliance

1. GROUP MEMBERS
AEGIDIUS SAVIO MONDOL
ANUSHREE MAZUMDAR
ALOK KUMAR
CHANDRIMA MUKHERJEE
POUSALI MUKHERJEE
PRABAR RAKSHIT
PRIYANKA AGARWAL
RANJEET SINGH

2. INTRODUCTION
• Founded 1966
• Founder Dhirubhai Ambani
• Headquarters Mumbai, Maharashtra, India
• Key people Mukesh Ambani
• Products Crude oil, Natural gas,
Petrochemicals, Petroleum, Polyester, textiles,
Retail.

3. HISTORY
1960 - 1980
• The company was co-founded by Dhirubhai Ambani and his cousin Champaklal
Damani in 1960s as Reliance Commercial Corporation.
• In 1965, the partnership was ended and Dhirubhai continued the polyester business
of the firm.
• In 1966, Reliance Textiles Industries Pvt Ltd was incorporated in Maharashtra. It
established a synthetic fabrics mill in the same year at Naroda in Gujarat.
• In 1975, company expanded its business into textiles, with "Vimal" becoming its
major brand in later years. The company held its Initial public offering (IPO) in 1977
1981 - 2000
• In 1985, the name of the company was changed from Reliance Textiles Industries
Ltd. to Reliance Industries Ltd.
• During the years 1985 to 1992, the company expanded its installed capacity for
producing polyster yarn by over 145,000 tonnes per annum.
• The Hazira petrochemical plant was commissioned in 1991-92.
• In 1993, Reliance turned to the overseas capital markets for funds through a global
depositary 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 BB+, stable outlook, constrained by
the sovereign ceiling.

4. 2001 - 2013
• In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became
India's two largest companies in terms of all major financial parameters.
• 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 during 2002. The in-place volume of natural gas
was in excess of 7 trillion cubic feet, equivalent to about 1.2 billion barrels 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 Government of India.IPCL was later merged with RIL in 2008.
• In the years 2005 and 2006, the company reorganized its business by
demerging its investments in power generation and distribution, financial
services and telecommunication services into four separate entities. 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‘.
• In 2010, Reliance entered Broadband services market with acquisition of
Infotel Broadband Services Limited, which was the only successful bidder
for pan-India fourth-generation (4G) spectrum auction held by Government
of India.[

5. MANAGEMENT
Employees
As on 31 March 2013, the company had 23,519 employees of
which 1,159 were women and 82 were employees with disabilities.
It also had 29,462 temporary employees on the same date.
As per its Sustainability Report for 2011-12, the attrition rate was
7.57%.In its 39th Annual General Meeting, the company Chairman
informed the shareholders of the investment plans of the company
of about 150000 crore (US$23 billion) in next three years. This
would be accompanied by increasing the staff strength in Retail
division from existing strength of 35,000 to 120,000 in next three
years and increasing employees in Telecom division from existing
3,000 to 10,000 in 12 months.

6. MANAGEMENT
• Backward vertical integration has been the cornerstone of the evolution and
growth of Reliance. Starting with textiles in the late seventies, Reliance
pursued a strategy of backward vertical integration - in polyester, fibre
intermediates, plastics, petrochemicals, petroleum refining and oil and gas
exploration and production - to be fully integrated along the materials and
energy value chain.

7. ORGANIZATIONAL CULTURE
• Work Culture
Research & Development (R&D), Technology Development and Innovation continues to be an
integral part of RIL's agenda for achieving growth, business profitability, sustainability and rural
transformation. The Reliance Technology Group (RTG), created by consolidating various
research and technology functions is helping create enhanced value delivery by leveraging all the
skills and competencies, and creating new opportunities at the interfaces.
Key objectives of RTG are as follows:
* Develop fit-for-purpose and sustainable technology and its application.
* Provide effective project support and assurance to manufacturing plants and businesses.
* Provide technical assurance to projects including technology selection and absorption.
* Proactively identify and support technical opportunities to add value across RIL's businesses.
* Develop technology strategies suited to create business growth and offset threats.
* Balance technology sourcing by a flexible strategy of smart buying, fast customization and
flagship development of key technologies.
* Exploit synergies cutting across technologies/disciplines.
* Improve technical productivity on a continuous basis.
* Develop / recruit staff with skills and motivation to meet current and future business needs.
* Create a fit-for-purpose process centric organization.
* Ensure long term technical health of RIL businesses.
* Manage technology and Intellectual Property (IP) assets for the Company.

8. MANAGEMENT
Score Card
• Salary 3.6
• Work Life Balance 3.4
• Corporate Culture 3.6
• Rewards &
Recognition 3.3
• Participative
Management 3.4
• Learning &
Development 3.8
• Career growth Plan 3.2
• Communication 3.2
Top Reasons to work here
Brand Name69%
Learning & Development57%
Career Growth
Opportunities42%
Top Skills to Succeed here
Relationship Management54%
Leadership42%
Team Work42%

9. SHARE PRICES
BSE
• As on 3rd december 2013: Rs.
861.90
• 7(+0.82%)
• Volume: 406056
NSE
• As on 3rd december 2013:
Rs.861.90
• 6.60 (+0.77%)
• Volume: 2,099,451

10. 52 WEEKS HIGH LOW
• Previous closing price - 854.90
• Day's High/Low (Rs.)865.45 -
851.15
• 52wk High/Low (Rs.)954.80 -
765.00
• Market Capitalization
(Rs. Cr)278,497.13
• Previous closing price-861.90
• Day's low/high 850.65-865.50
• 52 week low/high 763.90-
955.00

11. RELIANCE INDUSTRIES STOCK PRICE
 MARKET CAP (RS CR) =
278,501.21
 P/E = 12.70
 BOOK VALUE (RS) = 557.10
 DIV (%) = 90.00%
 MARKET LOT 1
 INDUSTRY P/E = 13.91
 EPS (BASED ON STAND
ALONE NUMBERS) = 67.88
 P/C = 8.87
 PRICE/BOOK = 1.55
 DIV YIELD.(%) = 1.04%
 FACE VALUE (RS) = 10.00
 DELIVERABLES (%) = 52.25

12. DIVIDEND HISTORY
Year Month Dividend (%)
2013 Apr 90
2012 Apr 85
2011 Apr 80
2010 Apr 70
2009 Oct 130
2008 Apr 130
2007 Mar 110
2006 Apr 100
2005 Apr 75
2004 Apr 53
2003 Apr 50

13. CASH FLOW STATEMENT
Particulars Mar'13 Mar'12 Mar'11 Mar'10 Mar'09
Profit Before Tax 26284.00
25750.
00
25242.24
20547.4
4
18433.2
3
Net Cash Flow from
Operating Activity
32995.00
26974.
00
33280.5
2
20490.2
2
18245.8
6
Net Cash Used
in Investing Activity
-14797.00
-
3046.0
0
-
20332.8
8
-
18204.5
0
-
24084.2
0
Net Cash Used
in Financing Activity
-8249.00
-
11465.0
0
724.57
-
10999.6
0
23732.5
8
Net Inc/Dec In Cash and
Cash Equivalent
9949.00
12463.
00
13672.21
-
8713.88
17894.2
4
Cash and Cash Equivalent
- Beginning of the Year
39598.00
27135.0
0
13462.65
22176.5
3
4282.29
Cash and Cash Equivalent
- End of the Year
49547.00
39598.
00
27134.86
13462.6
5
22176.5
3

14. RATIO ANALYSIS
PARTICULARS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Adjusted cash EPS
(Rs) 94.37 91.74 101.50 79.00 133.14
Dividend per
share 9.00 8.50 8.00 7.00 13.00
Dividend payout
ratio (net profit) 14.64 14.67 13.66 14.97 14.49
Earning retention
ratio 85.36 84.21 85.87 84.16 85.92
Operating Profit Per
Share (Rs)
95.36 103.43 115.58 91.64 153.47
Earnings Per Share 65.05 61.26 61.97 49.64 97.28
Book Value 557.49 498.21 446.25 392.51 727.66

15. • Short term and long term solvency ratio –
Short term solvency ratios measures the short term ability of the enterprise to
pay its maturing obligations and to meet unexpected needs for cash. Long
term solvency ratios measures the ability of a company over a long period of
time, company’s ability to pay interest and face value of debt at maturity.
PARTICULARS
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Current Ratio 1.43 1.44 1.16 1.04 1.06
Quick Ratio 1.12 1.17 0.94 0.69 0.87
Debt Equity
Ratio
0.30 0.36 0.46 0.49 0.65
Long Term
Debt Equity
Ratio
0.24 0.30 0.38 0.44 0.59

16. • Coverage Ratios –
It determines whether or not earnings or profit sufficient
to satisfy claims of providers of long term capital. Higher
the better.
PARTICULA
RS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Interest
Cover
9.66 10.12 11.66 10.97 11.85
Total Debt to
Owners Fund
0.30 0.36 0.46 0.49 0.65
Financial
Charges
Coverage
Ratio
12.78 14.39 17.40 16.08 14.58
Long Term
Debt Equity
Ratio
0.24 0.30 0.38 0.44 0.59

17. • Profitability Ratios –
Higher ratio is favorable.
PARTICULA
RS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Gross Profit
Margin(%)
5.91 6.80 9.76 10.13 13.35
Net Profit
Margin(%)
5.70 5.99 8.08 8.35 10.65
Return On
Capital
Employed(%)
12.50 12.18 12.60 11.35 10.96
Operating
Profit
Margin(%)
8.54 10.25 15.24 15.60 17.01

18. • Management Efficiency Ratios –
These ratios are computed to evaluate the efficiency with which firm
manages and utilizes assets and capital. Higher the ratio, better will
be the use of assets and capital
PARTICUL
ARS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Inventory
Turnover
Ratio
8.69 10.42 9.59 8.29 12.92
Debtors
Turnover
Ratio
23.78 18.40 17.05 23.67 26.29
Investments
Turnover
Ratio
8.69 10.42 9.59 8.29 12.92
Fixed Assets
Turnover
Ratio
2.24 2.05 1.58 1.24 1.01
Total Assets
Turnover
Ratio
2.04 1.91 1.66 1.48 0.79

19. BALANCE SHEET ITEMS
PARTICUL
ARS Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Investments 52,509.00 54,008.00 37,651.54 23,228.62 21,606.49
Inventories 42,729.00 35,955.00 29,825.38 26,981.62 14,836.72
Sundry Debtors 11,880.00 18,424.00 17,441.94 11,660.21 4,571.38
Cash and Bank
Balance
49,547.00 889.00 604.57 362.36 500.13
Loans and Advances 32,982.00 24,573.00 17,320.60 10,517.57 13,375.15
Fixed Deposits 0.00 38,709.00 26,530.29 13,100.29 21,676.40
Current Liabilities 79,620.00 66,244.00 61,399.87 48,018.65 42,664.81
Provisions 4,348.00 4,258.00 4,563.48 3,565.43 3,010.90
Reserves 176,766.00 159,698.00 142,799.95 125,095.97 112,945.44
Contingent
Liabilities
28,615.00 26,597.00 21,957.45 24,429.02 33,841.54

26. MACROECONOMIC FACTORS
INFLATION EFFECT
The agent count at Reliance Life Insurance has fallen 26,000, or 8% to
1.24 lakh at the end of March 31, 2013
GOVERNMENT POLICY EFFECT
 Amidst move to force Reliance Industry to sell gas from its main fields in
KG-D^ block at old rates of $ 4.2, the Mukesh Ambani-run firm today hit
out saying the government was not honouring signed contracts and
extraneous factors were being brought into business.
 RIL, which has faced numerous delays in getting approvals and shifting
goal-posts, said the country did not have a stable policy regime and this
was responsible for exit of global energy giants like Royal Dutch Sell, BHP
Biliton of Australia, Statoil of Norway and Brazil's petrobras.

27. PEER GROUP COMPARISON
• Indian Oil Corporation
• Bharat Petroleum Corporation

28. PEER GROUP COMPARISON
Share prices as on 3rd December ’13
BSE NSE
Rs. 202.20 Rs. 202.35
VOLUME : 43,515 VOLUME : 285,540

29. PEER GROUP COMPARISON
• BHARAT PETROLEUM CORPORATION
Share prices as on 3rd December ’13
BSE NSE
Rs. 350.20 Rs. 350.70
VOLUME : 57,377 VOLUME : 1,275,192

30. COMPARING RELIANCE INDUSTRIES WITH INDIAN OIL
CORPORATION
Ratios Reliance industries Indian Oil
Corporation
Gross Profit Ratio 5.91 3.09
Net Profit Ratio 5.70 0.89
Return On Capital Employed 12.50 13.08
Operating Profit Margin 8.54 4.20
Higher the ratio, the more favorable it is.
Inventory Turnover Ratio
8.69
8.15
Debtors Turnover Ratio
23.78
36.01
Investments Turnover Ratio
8.69
8.15
Fixed Assets Turnover Ratio
2.24
4.49
Higher the ratio, better will be the use of assets and capital

31. PARTICULARS Reliance Indian oil
corporation
Earnings per share 65.05 16.29
P/E ratio 13.24 12.41 12.42
Investments 52509.00 ( in Rs. Cr.) 18678.76 ( in Rs. Cr.)
Debtors 11880 15502.87
Contingent liabilities 50533 28085.59
LIQUIDITY and SOLVENCY RATIOS
Ratios Reliance Indian Oil
Corporation
Current ratio (%) 1.43 0.83
Quick ratio (%) 1.12 0.74
Debt-Equity ratio (%) 0.30 1.22

32. COMPARING RELIANCE INDUSTRIES WITH
BHARAT PETROLEUM CORPORATION
Ratios Reliance industries Bharat Petroleum
Corporation
Gross Profit Ratio 5.91 1.74
Net Profit Ratio 5.70 1.09
Return On Capital Employed 12.50 14.57
Operating Profit Margin 8.54 2.54
Higher the ratio, the more favorable it is.
Inventory Turnover Ratio
8.69
14.39
Debtors Turnover Ratio
23.78
46.16
Investments Turnover Ratio
8.69
14.39
Fixed Assets Turnover Ratio
2.24
7.17
Higher the ratio, better will be the use of assets and capital

33. PARTICULARS Reliance Bharat Petroleum
Corporation
Earnings per share 65.05 36.55
P/E ratio 13.24 9.58 9.59
Investments 52509.00 ( in Rs. Cr.) 12103 (in Rs. Cr.)
Debtors 11880 4025.13
Contingent liabilities 50533 11467.93
LIQUIDITY and SOLVENCY RATIOS
Ratios Reliance Bharat Petroleum
Corporation
Current ratio (%) 1.43 0.78
Quick ratio (%) 1.12 0.71
Debt-Equity ratio (%) 0.30 1.42

34. ACHIEVEMENTS OF RELIANCE
INDUSTRIES
RIL continues to receive recognition for industry leadership and excellence in its fields
of operations. Some of the major awards and recognitions conferred during the year
include:
• Received the appreciation plaque from ASSOCHAM for its CSR activities
• Jamnagar Manufacturing Division (DTA) refinery received the Jawaharlal Nehru
Centenary Award from the Ministry of Petroleum & Natural Gas for being among
the three refineries, which have achieved the lowest specific energy consumption
among Indian refineries.
• Dahej Manufacturing Division received the best viewer’s choice award for
implementing a Six Sigma Project from the American Society for Quality
• Hazira Manufacturing Division, Reliance Community Care Centre, received a
Trophy for work done under the National AIDS Control Program Phase III from
Population Foundation of India
• Nagothane Manufacturing Division received the National Award for Innovative
Training Practices for security training practices by Indian Society for Training &
Development.
• Hazira Manufacturing Division received the CII-ITC Sustainability Awards 2012
and the coveted Certificate of Commendation for Significant Achievement in the
area of Sustainable Development.

35. THANK YOU…