Financial Statement Analysis of Reliance Industries Limited
Financial Statement Analysis of Reliance Industries Limited
Cover Page
Project Title: Financial Statement Analysis of Reliance Industries Limited
Student Name: __________
Class: XII
Session: 2025?26
School: __________
Financial Statement Analysis of Reliance Industries Limited
Certificate
This is to certify that the project work titled 'Financial Statement Analysis of Reliance Industries Limited' has
been completed by __________ under the guidance of __________.
Financial Statement Analysis of Reliance Industries Limited
Acknowledgment
I would like to express my sincere gratitude to my Accountancy teacher, my family, and friends for their
support in completing this project.
Financial Statement Analysis of Reliance Industries Limited
Table of Contents
1. Introduction
2. Objectives
3. Methodology
4. Company Profile
5. Financial Statements Overview
...
Financial Statement Analysis of Reliance Industries Limited
Introduction
Financial statement analysis is a process of examining and evaluating financial records to understand the
financial health of a company.
Financial Statement Analysis of Reliance Industries Limited
Objectives
1. To analyze RIL's financial performance
2. To interpret key financial ratios
3. To analyze comparative and common size statements
Financial Statement Analysis of Reliance Industries Limited
Methodology
Data Source: Annual reports of RIL
Tools: Ratio Analysis, Comparative and Common Size Statements
Visual Aids: Bar charts, Pie charts
Financial Statement Analysis of Reliance Industries Limited
Company Profile
Reliance Industries Limited, founded by Dhirubhai Ambani, is a conglomerate involved in petrochemicals,
refining, oil, telecommunications, and retail.
Financial Statement Analysis of Reliance Industries Limited
Financial Statement Overview
Summary of key financials for FY 2023?24 and FY 2024?25 including revenue, net profit, assets, liabilities.
Financial Statement Analysis of Reliance Industries Limited
Financial Statement Analysis of Reliance Industries Limited
Cover Page
Project Title: Financial Statement Analysis of Reliance Industries Limited
Student Name: __________
Class: XII
Session: 2025?26
School: __________
Financial Statement Analysis of Reliance Industries Limited
Certificate
This is to certify that the project work titled 'Financial Statement Analysis of Reliance Industries Limited' has
been completed by __________ under the guidance of __________.
Financial Statement Analysis of Reliance Industries Limited
Acknowledgment
I would like to express my sincere gratitude to my Accountancy teacher, my family, and friends for their
support in completing this project.
Financial Statement Analysis of Reliance Industries Limited
Table of Contents
1. Introduction
2. Objectives
3. Methodology
4. Company Profile
5. Financial Statements Overview
...
Financial Statement Analysis of Reliance Industries Limited
Introduction
Financial statement analysis is a process of examining and evaluating financial records to understand the
financial health of a company.
Financial Statement Analysis of Reliance Industries Limited
Objectives
1. To analyze RIL's financial performance
2. To interpret key financial ratios
3. To analyze comparative and common size statements
Financial Statement Analysis of Reliance Industries Limited
Methodology
Data Source: Annual reports of RIL
Tools: Ratio Analysis, Comparative and Common Size Statements
Visual Aids: Bar charts, Pie charts
Financial Statement Analysis of Reliance Industries Limited
Company Profile
Reliance Industries Limited, founded by Dhirubhai Ambani, is a conglomerate involved in petrochemicals,
refining, oil, telecommunications, and retail.
Financial Statement Analysis of Reliance Industries Limited
Financial Statement Overview
Summary of key financials for FY 2023?24 and FY 2024?25 including revenue, net profit, assets, liabilities.
Financial Statement Analysis of Reliance Industries Limited
Current Ratio
Formula: Current Assets / Current Liabilities
Year 2023?24: 1.8
Year 2024?25: 2.0
Interpretation: Indicates improving liquidity position.
Visual: Bar Chart
Financial Statement Analysis of Reliance Industries Limited
Quick Ratio
Formula: (Current Assets - Inventory) / Current Liabilities
2023?24: 1.2
2024?25: 1.5
Interpretation: Better ability to meet short-term obligations.
Financial Statement Analysis of Reliance Industries Limited
Debt-Equity Ratio
Formula: Total Debt / Shareholders' Equity
2023?24: 0.7
2024?25: 0.6
Interpretation: Financial leverage is decreasing.
Financial Statement Analysis of Reliance Industries Limited
Interest Coverage Ratio
Formula: EBIT / Interest Expense
2023?24: 4.2
2024?25: 5.0
Interpretation: Company can easily pay interest.
Financial Statement Analysis of Reliance Industries Limited
Net Profit Margin
Formula: Net Profit / Net Sales × 100
2023?24: 12%
2024?25: 14%
Interpretation: Profitability is improving.
Financial Statement Analysis of Reliance Industries Limited
Return on Capital Employed
Formula: EBIT / Capital Employed
2023?24: 10.5%
2024?25: 12.3%
Interpretation: Efficient use of capital.
Financial Statement Analysis of Reliance Industries Limited
Inventory Turnover Ratio
Formula: COGS / Average Inventory
2023?24: 6.1
2024?25: 6.7
Interpretation: Inventory management improved.
Financial Statement Analysis of Reliance Industries Limited
Debtors Turnover Ratio
Formula: Net Credit Sales / Average Accounts Receivable
2023?24: 8.0
2024?25: 8.4
Interpretation: Faster receivables collection.
Financial Statement Analysis of Reliance Industries Limited
EPS
Formula: Net Income / No. of Shares
2023?24: ?45.2
2024?25: ?51.3
Interpretation: Earnings per share has grown.
Financial Statement Analysis of Reliance Industries Limited
P/E Ratio
Formula: Market Price per Share / EPS
2023?24: 18x
2024?25: 20x
Interpretation: Investors? confidence is rising.
Financial Statement Analysis of Reliance Industries Limited
Comparative Income Statement
Revenue: ?1,20,000 Cr (2023?24) ? ?1,35,000 Cr (2024?25)
Net Profit: ?14,400 Cr ? ?18,900 Cr
Observation: Revenue and profit grew.
Financial Statement Analysis of Reliance Industries Limited
Comparative Balance Sheet
Assets: ?3,50,000 Cr (2023?24) ? ?3,90,000 Cr (2024?25)
Equity: ?1,80,000 Cr ? ?2,00,000 Cr
Interpretation: Asset base expanded.
Financial Statement Analysis of Reliance Industries Limited
Graphical Representation ? Income
Bar chart: Revenue vs Net Profit
2023?24 and 2024?25
Financial Statement Analysis of Reliance Industries Limited
Graphical Representation ? Balance Sheet
Pie chart: Asset Composition
Bar chart: Equity vs Debt
Financial Statement Analysis of Reliance Industries Limited
Graphical Representation ? Key Ratios
Line chart: Current Ratio, Debt-Equity, ROCE over 2 years
Financial Statement Analysis of Reliance Industries Limited
Common Size Income Statement
COGS: 62% of Sales
Net Profit: 14% of Sales
Observation: Better margin management.
Financial Statement Analysis of Reliance Industries Limited
Common Size Balance Sheet
Fixed Assets: 45% of Total Assets
Equity: 51% of Liabilities
Comment: Balanced structure.
Financial Statement Analysis of Reliance Industries Limited
Graph: Common Size Income
Pie chart: Revenue distribution
Bar graph: Expense categories