FINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdf
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May 09, 2022
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About This Presentation
project
Slide Content
1
“FINANCIAL ANALYSIS OF RELIANCE JIO ”
Submitted in partial fulfillment of the requirements
for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION ( BBA)
Guru Gobind Singh Indraprastha University, Delhi
Associate Professor: Ms Ashima Jindal Submitted by: Vismay Tyagi
(Project Guide) (Student Name)
Roll No.: 09520601719
Trinity Institute of Professional Studies
Affiliated to Guru Gobind Singh Indraprastha University
(2019-2021)
“FINANCIAL ANALYSIS OF RELIANCE JIO ”
Submitted in partial fulfillment of the requirements
for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION ( BBA)
Guru Gobind Singh Indraprastha University, Delhi
Associate Professor: Ms Ashima Jindal Submitted by: Vismay Tyagi
(Project Guide) (Student Name)
Roll No.: 09520601719
Trinity Institute of Professional Studies
Affiliated to Guru Gobind Singh Indraprastha University
(2019-2021)
Page No. 2
A109, Block A, Sector 80,
Noida, Uttar Pradesh 201301
Contact +91 9557607982
Dated: 27
th
July, 2021
TO WHOM SO EVER IT MAY CONCERN
This is to certify that Mr Vismay Tyagi a student of Trinity Institute of Professional Studies,
New Delhi has undergone training with our organization dated from 27.05.2021 to
26.07.2021. The training was Conducted to entitle “Financial Analysis of Reliance Jio”.
He has been hard working during his project work and has completed the project with
utmost sincerity and dedication. His conduct was good during his stay with us.
We wish him all the success in life.
Thanking you
Yours faithfully,
For: Reliance Jio
A109, Block A, Sector 80,
Noida, Uttar Pradesh 201301
Contact +91 9557607982
Dated: 27
th
July, 2021
TO WHOM SO EVER IT MAY CONCERN
This is to certify that Mr Vismay Tyagi a student of Trinity Institute of Professional Studies,
New Delhi has undergone training with our organization dated from 27.05.2021 to
26.07.2021. The training was Conducted to entitle “Financial Analysis of Reliance Jio”.
He has been hard working during his project work and has completed the project with
utmost sincerity and dedication. His conduct was good during his stay with us.
We wish him all the success in life.
Thanking you
Yours faithfully,
For: Reliance Jio
Page No. 3
DECLARATION
I hereby declare that the following documented project report titled “Financial Analysis” is
an original and authentic work done by me for the partial fulfilment of Bachelors of Business
Administration degree program at “Reliance Jio”.
I hereby certify that all the endeavour put in the fulfilment of the task are genuine and
original to the best of my knowledge & I have not submitted it earlier elsewhere.
Vismay Tyagi
09520601719
BBA (G)
5
th
semester/ 1
st
shift
DECLARATION
I hereby declare that the following documented project report titled “Financial Analysis” is
an original and authentic work done by me for the partial fulfilment of Bachelors of Business
Administration degree program at “Reliance Jio”.
I hereby certify that all the endeavour put in the fulfilment of the task are genuine and
original to the best of my knowledge & I have not submitted it earlier elsewhere.
Vismay Tyagi
09520601719
BBA (G)
5
th
semester/ 1
st
shift
Page No. 4
ACKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere feeling towards my mentors who
graciously gave me their time and expertise.
They have provided me with the valuable guidance, sustained efforts and friendly approach.
It would have been difficult to achieve the results in such a short span of time without their
help.
I deem it my duty to record my gratitude towards the External project supervisor Mr.
and Internal project supervisor Ms Ashima Jindal who devoted his precious time to interact,
guide and gave me the right approach to accomplish the task and also helped me to enhance
my knowledge and understanding of the project.
Vismay Tyagi
09520601719
BBA (G)
5
th
Semester/ 1
st
Shift
ACKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere feeling towards my mentors who
graciously gave me their time and expertise.
They have provided me with the valuable guidance, sustained efforts and friendly approach.
It would have been difficult to achieve the results in such a short span of time without their
help.
I deem it my duty to record my gratitude towards the External project supervisor Mr.
and Internal project supervisor Ms Ashima Jindal who devoted his precious time to interact,
guide and gave me the right approach to accomplish the task and also helped me to enhance
my knowledge and understanding of the project.
Vismay Tyagi
09520601719
BBA (G)
5
th
Semester/ 1
st
Shift
Page No. 5
ABSTRACT
The concept of financial performance analysis is the process of identifying financial strength
of the company with the help of its Profit and loss account, and Balance sheet. Reliance
Industries Limited (RIL), is India’s largest private sector company with business across the
energy and materials value chain and a strong presence in the rapidly expanding retail and
telecommunication sectors. The financial performance analysis of the company is done for
the period of five years, starting from the financial year 2009-2010 to 2013-2014. The
objective of this study to evaluate the financial position of the company, analyze financial
changes and identify future result by using ratio and trend analysis. To know whether the
business is making profit or not, is maintaining liquidity position, and know the dividend
growth of the company. The ratios used in this project are in terms of solvency, turnover, and
profitability ratios. The trend analysis has done for the indicators such as Sales and Expenses.
The company performance was good during the period 2010 and 2011, but in 2012 and 2013
the company performance was not good, due to recession in European countries and affected
the exports of the company. Then slowly the global economic condition was improved a little
bit in 2014, and the customer demand for the retail products and oil exports increased in the
year 2014.
ABSTRACT
The concept of financial performance analysis is the process of identifying financial strength
of the company with the help of its Profit and loss account, and Balance sheet. Reliance
Industries Limited (RIL), is India’s largest private sector company with business across the
energy and materials value chain and a strong presence in the rapidly expanding retail and
telecommunication sectors. The financial performance analysis of the company is done for
the period of five years, starting from the financial year 2009-2010 to 2013-2014. The
objective of this study to evaluate the financial position of the company, analyze financial
changes and identify future result by using ratio and trend analysis. To know whether the
business is making profit or not, is maintaining liquidity position, and know the dividend
growth of the company. The ratios used in this project are in terms of solvency, turnover, and
profitability ratios. The trend analysis has done for the indicators such as Sales and Expenses.
The company performance was good during the period 2010 and 2011, but in 2012 and 2013
the company performance was not good, due to recession in European countries and affected
the exports of the company. Then slowly the global economic condition was improved a little
bit in 2014, and the customer demand for the retail products and oil exports increased in the
year 2014.
Page No. 6
TABLE OF CONTENTS
Chapter Particular Page No.
Title Page
Certificate
Declaration
Acknowledgment
Abstract
Ch - 1
Introduction to the topic
8
Need of the study
13
Scope of the study
14
Objectives of the study
15
Hypothesis of the study
16
Research methodology
17
Limitation of the study
18
Ch - 2
Introduction to the Industry
19
Company profile
20
Ch - 3
Data analysis and interpretation
38
Ch - 4
Finding
47
Suggestion & recommendation
49
Conclusion
50
References
51
Annexure
52
Ch-5
Questionnaire
60
TABLE OF CONTENTS
Chapter Particular Page No.
Title Page
Certificate
Declaration
Acknowledgment
Abstract
Ch - 1
Introduction to the topic
8
Need of the study
13
Scope of the study
14
Objectives of the study
15
Hypothesis of the study
16
Research methodology
17
Limitation of the study
18
Ch - 2
Introduction to the Industry
19
Company profile
20
Ch - 3
Data analysis and interpretation
38
Ch - 4
Finding
47
Suggestion & recommendation
49
Conclusion
50
References
51
Annexure
52
Ch-5
Questionnaire
60
Page No. 7
INDEX
Chapter Contents Page No.
1 INTRODUCTION 8-18
❖ NEED & IMPORTANCE OF THE STUDY
❖ OBJECTIVES OF THE STUDY
❖ SCOPE OF THE STUDY
❖ METHODOLOGY OF THE STUDY
❖ LIMITATIONS OF THE STUDY
2 COMPANY PROFILE 20-37
3 DATA ANALYSIS &INTERPREATION 38-46
4 FINDINGS, CONCLUSIONS SUGGESTIONS 47-59
5 QUESTIONNAIRE 60-62
INDEX
Chapter Contents Page No.
1 INTRODUCTION 8-18
❖ NEED & IMPORTANCE OF THE STUDY
❖ OBJECTIVES OF THE STUDY
❖ SCOPE OF THE STUDY
❖ METHODOLOGY OF THE STUDY
❖ LIMITATIONS OF THE STUDY
2 COMPANY PROFILE 20-37
3 DATA ANALYSIS &INTERPREATION 38-46
4 FINDINGS, CONCLUSIONS SUGGESTIONS 47-59
5 QUESTIONNAIRE 60-62
Page No. 8
CHAPTER-1
INTRODUCTION OF TOPIC
CHAPTER-1
INTRODUCTION OF TOPIC
Page No. 9
INTRODUCTION
Financial statement analysis allows analysts to identify trends by comparing ratios across
multiple time periods and statement types. These statements allow analysts to measure
liquidity, profitability, company-wide efficiency and cash flow. There are three main types of
financial statements: the balance sheet, income statement and cash flow statement. The
balance sheet is a snapshot in time of the company's assets, liabilities and shareholders'
equity. Analysts use the balance sheet to analyze trends in assets and debts. The income
statement begins with sales and ends with net income. It also provides analysts with gross
profit, operating profit and net profit. Each of these is divided by sales to determine gross
profit margin, operating profit margin and net profit margin. The cash flow statement
provides an overview of the company's cash flows from operating activities, investing
activities and financing activities.
Financial statement analysis is the process of reviewing and evaluating a company's financial
statements (such as the balance sheet or profit and loss statement), thereby gaining an
understanding of the financial health of the company and enabling more effective decision
making. Financial statements record financial data; however, this information must be
evaluated through financial statement analysis to become more useful to investors,
shareholders, managers and other interested parties.
The first task of financial analysis is to select the information relevant to the decision under
consideration to the total information contained in the financial statement. The second step is
to arrange the information in a way to highlight significant relationship. The final step is
interpretation and drawing of inference and conclusions. Financial statement is the process of
selection, relation and evaluation.
Financial Analysis is the process of identifying the financial strengths and weaknesses of the
firm by property-establishing relationship between the items of the Balance Sheet and the
Profit and Loss account. There are various methods or techniques are used in analyzing
financial schedule of change in working capital flow, cost volume Profit Analysis and Ratio
Analysis.
INTRODUCTION
Financial statement analysis allows analysts to identify trends by comparing ratios across
multiple time periods and statement types. These statements allow analysts to measure
liquidity, profitability, company-wide efficiency and cash flow. There are three main types of
financial statements: the balance sheet, income statement and cash flow statement. The
balance sheet is a snapshot in time of the company's assets, liabilities and shareholders'
equity. Analysts use the balance sheet to analyze trends in assets and debts. The income
statement begins with sales and ends with net income. It also provides analysts with gross
profit, operating profit and net profit. Each of these is divided by sales to determine gross
profit margin, operating profit margin and net profit margin. The cash flow statement
provides an overview of the company's cash flows from operating activities, investing
activities and financing activities.
Financial statement analysis is the process of reviewing and evaluating a company's financial
statements (such as the balance sheet or profit and loss statement), thereby gaining an
understanding of the financial health of the company and enabling more effective decision
making. Financial statements record financial data; however, this information must be
evaluated through financial statement analysis to become more useful to investors,
shareholders, managers and other interested parties.
The first task of financial analysis is to select the information relevant to the decision under
consideration to the total information contained in the financial statement. The second step is
to arrange the information in a way to highlight significant relationship. The final step is
interpretation and drawing of inference and conclusions. Financial statement is the process of
selection, relation and evaluation.
Financial Analysis is the process of identifying the financial strengths and weaknesses of the
firm by property-establishing relationship between the items of the Balance Sheet and the
Profit and Loss account. There are various methods or techniques are used in analyzing
financial schedule of change in working capital flow, cost volume Profit Analysis and Ratio
Analysis.
Page No. 10
CLASSIFICATION OF RATIO
Figure 9.1 shows some of the examples of ratios as per traditional
classification:
CLASSIFICATION OF RATIO
Figure 9.1 shows some of the examples of ratios as per traditional
classification:
Page No. 11
Classification of ratios
Ratios may be classified in the following two ways:
i. Traditional classification
ii. Functional classification
1. Traditional classification
Traditional classification of ratios is done on the basis of the financial statements from which
the ratios are calculated. Under the traditional classification, the ratios are classified as: (i)
Balance sheet ratios, (ii) Income statement ratios and (iii) Inter-statement ratios.
(i) Balance sheet ratio
If both items in a ratio are from balance sheet, it is classified as balance sheet ratio.
(ii) Income statement ratio
If the two items in a ratio are from income statement, it is classified as income statement
ratio.
(iii) Inter-statement ratio
If a ratio is computed with one item from income statement and another item from balance
sheet, it is called inter-statement ratio.
2. Functional classification
Functional classification of ratios is based on the purpose for which ratios are computed and
it is the most commonly used classification. Under the functional classification, the ratios are
classified as follows:
(i) Liquidity ratios
(ii) Long term solvency ratios
(iii) Turnover ratios
(iv) Profitability ratios
Classification of ratios
Ratios may be classified in the following two ways:
i. Traditional classification
ii. Functional classification
1. Traditional classification
Traditional classification of ratios is done on the basis of the financial statements from which
the ratios are calculated. Under the traditional classification, the ratios are classified as: (i)
Balance sheet ratios, (ii) Income statement ratios and (iii) Inter-statement ratios.
(i) Balance sheet ratio
If both items in a ratio are from balance sheet, it is classified as balance sheet ratio.
(ii) Income statement ratio
If the two items in a ratio are from income statement, it is classified as income statement
ratio.
(iii) Inter-statement ratio
If a ratio is computed with one item from income statement and another item from balance
sheet, it is called inter-statement ratio.
2. Functional classification
Functional classification of ratios is based on the purpose for which ratios are computed and
it is the most commonly used classification. Under the functional classification, the ratios are
classified as follows:
(i) Liquidity ratios
(ii) Long term solvency ratios
(iii) Turnover ratios
(iv) Profitability ratios
Page No. 12
Figure 9.2 shows some of the examples of ratios as per functional
classification:
Figure 9.2 shows some of the examples of ratios as per functional
classification:
Page No. 13
NEED OF THE STUDY
• Financial analyst analyses the financial statements with various tools of analysis
before commanding upon the financial health of the firm.
• Essential to bring out the history of Reliance Industries.
• Significance and meaning of the financial statements.
NEED OF THE STUDY
• Financial analyst analyses the financial statements with various tools of analysis
before commanding upon the financial health of the firm.
• Essential to bring out the history of Reliance Industries.
• Significance and meaning of the financial statements.
Page No. 14
SCOPE OF THE STUDY
The study covers almost the entire area of financial operations covered by “Reliance
Industries Limited” the study has been conducted with the help of data obtained from audited
financial records. The audited financial records are the company annual reports pertaining to
past 5 years from 2010-2015 to 2016-2020 and the audited financial records are obtained
from the company’s annual report. The researcher tries to measure the performance of the
organization.
As is apparent from the above discussion about the meaning of financial management the
scope of financial management is very wide. The scope extends over the following three
dimensions.
• For the organization to minimize cost and to maximize return.
• The ability to meet its operating activities
• To overcome undue risk.
SCOPE OF THE STUDY
The study covers almost the entire area of financial operations covered by “Reliance
Industries Limited” the study has been conducted with the help of data obtained from audited
financial records. The audited financial records are the company annual reports pertaining to
past 5 years from 2010-2015 to 2016-2020 and the audited financial records are obtained
from the company’s annual report. The researcher tries to measure the performance of the
organization.
As is apparent from the above discussion about the meaning of financial management the
scope of financial management is very wide. The scope extends over the following three
dimensions.
• For the organization to minimize cost and to maximize return.
• The ability to meet its operating activities
• To overcome undue risk.
Page No. 15
OBJECTIVES OF THE STUDY
• To learn about the various ratios that are used for financial analysis.
• To know about the financial position of Reliance Jio Infocomm Limited (RJIL).
• To know the various financial indications through changing values of various
ratios.
• To learn the calculation of various ratios.
OBJECTIVES OF THE STUDY
• To learn about the various ratios that are used for financial analysis.
• To know about the financial position of Reliance Jio Infocomm Limited (RJIL).
• To know the various financial indications through changing values of various
ratios.
• To learn the calculation of various ratios.
Page No. 16
HYPOTHESIS
Null Hypothesis (HO)
➢ Financial Analysis does not help the business concern in maintaining the
goodwill.
➢ Financial Analysis does not create an environment of security, confidence, and
overall efficiency in a business.
Alternative Hypothesis
➢ Financial Analysis helps the business concern in maintaining the goodwill.
➢ Financial Analysis creates an environment of security, confidence, and overall
efficiency in a business.
HYPOTHESIS
Null Hypothesis (HO)
➢ Financial Analysis does not help the business concern in maintaining the
goodwill.
➢ Financial Analysis does not create an environment of security, confidence, and
overall efficiency in a business.
Alternative Hypothesis
➢ Financial Analysis helps the business concern in maintaining the goodwill.
➢ Financial Analysis creates an environment of security, confidence, and overall
efficiency in a business.
Page No. 17
RESEARCH METHODOLOGY
The present study is mainly based on the secondary data and some primary data used to
profound the insight of topic selected. The data required has been collected from company
Reliance Jio, websites, E-journals, Annual reports, books etc.
DATA COLLECTION METHOD
PRIMARY DATA:
No primary data was collected.
SECONDARY DATA:
Secondary data was collected from the existing data sources, catalogues, internet, magazine,
case studies, newspapers, journals, articles, etc. The information so collected has been
consolidated in a meaningful manner for the purpose.
Data collected from financial statements of the company;
❖ Profit & Loss A/c of Reliance Jio Infocomm Limited (RJIL).
❖ Balance Sheet of Reliance Jio Infocomm Limited (RJIL).
❖ Annual Report, etc.
TOOLS USED FOR DATA ANALYSIS
• PERCENTAGE ANALYSIS
The tool used for data interpretation for the study is percentage analysis, by converting the
received data into percentage and interpreting the results thereof.
• PRESENTATION OF DATA
For the meaningful representation of the results obtained from the data’s we use bar
diagrams, pie charts and doughnut in this study.
RESEARCH METHODOLOGY
The present study is mainly based on the secondary data and some primary data used to
profound the insight of topic selected. The data required has been collected from company
Reliance Jio, websites, E-journals, Annual reports, books etc.
DATA COLLECTION METHOD
PRIMARY DATA:
No primary data was collected.
SECONDARY DATA:
Secondary data was collected from the existing data sources, catalogues, internet, magazine,
case studies, newspapers, journals, articles, etc. The information so collected has been
consolidated in a meaningful manner for the purpose.
Data collected from financial statements of the company;
❖ Profit & Loss A/c of Reliance Jio Infocomm Limited (RJIL).
❖ Balance Sheet of Reliance Jio Infocomm Limited (RJIL).
❖ Annual Report, etc.
TOOLS USED FOR DATA ANALYSIS
• PERCENTAGE ANALYSIS
The tool used for data interpretation for the study is percentage analysis, by converting the
received data into percentage and interpreting the results thereof.
• PRESENTATION OF DATA
For the meaningful representation of the results obtained from the data’s we use bar
diagrams, pie charts and doughnut in this study.
Page No. 18
SAMPLE SIZE:
Four Companies have been selected for the study to make the study more meaningful:
• Tata Communication
• BSNL
• Bharati Airtel
• Vodafone Idea
LIMITATION OF THE STUDY
This study is based on the secondary data collected from the Reliance Jio Infocomm Limited
(RJIL)
• The accuracy of financial information largely depends on how accurately financial
statements are prepared.
• Since financial statements are prepared by using historical financial data, therefore,
the information derived from such statements may not be effective in corporate
planning, if the previous situation does not prevail.
• Then financial statement analysis provides only quantitative information about the
company's financial affairs.
SAMPLE SIZE:
Four Companies have been selected for the study to make the study more meaningful:
• Tata Communication
• BSNL
• Bharati Airtel
• Vodafone Idea
LIMITATION OF THE STUDY
This study is based on the secondary data collected from the Reliance Jio Infocomm Limited
(RJIL)
• The accuracy of financial information largely depends on how accurately financial
statements are prepared.
• Since financial statements are prepared by using historical financial data, therefore,
the information derived from such statements may not be effective in corporate
planning, if the previous situation does not prevail.
• Then financial statement analysis provides only quantitative information about the
company's financial affairs.
Page No. 19
CHAPTER-2
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-2
INDUSTRY PROFILE
COMPANY PROFILE
Page No. 20
INDUSTRY PROFILE
MEANING OF FINANCIAL ANALYSIS :-
The first task of financial analysis is to select the information relevant to the decision under
consideration to the total information contained in the financial statement. The second step is
to arrange the information in a way to highlight significant relationship. The final step is
interpretation and drawing of inference and conclusions. Financial statement is the process of
selection, relation and evaluation.
The meaning of Financial Analysis is also known as analysis refers to the process of
determining according to Meta fund tutored is a process of evaluating the relationship
between components parts of a financial statements to obtain a better understanding of a
firm's position and performance. In the word of Myers" Financial statements analysis is
largely a study of relationship among the various financial factors in a series of statements".
The purpose of financial statements is so as to judge the profitability and financial soundness
of the firm.
Financial Analysis can be undertaken by management of the firm or by parties outside the
firm Owners, Creditors, Investors and Others. The structure of Assets, Liabilities and
Owner's equity and so on and the Profit & Loss account shows the results of operation during
a certain period of times in terms of the revenue obtained during a certain period of times in
terms of the revenue obtained and the cost incurred during the year. Thus, the financial
position and operational statement provides a summarized view of the financial position and
operation of the firm.
The Financial Analysis statements are thus an important aid to Financial Analysis.
The first task of the Financial Analyst is to select the information relevant to the decisions
under consideration from the total information contained in the financial statements. In the
brief Financial Analysis are the process of selection, relation and Evaluation.
Purpose of Analysis of financial statements
• To know the earning capacity or profitability.
• To know the solvency.
• To know the financial strengths.
INDUSTRY PROFILE
MEANING OF FINANCIAL ANALYSIS :-
The first task of financial analysis is to select the information relevant to the decision under
consideration to the total information contained in the financial statement. The second step is
to arrange the information in a way to highlight significant relationship. The final step is
interpretation and drawing of inference and conclusions. Financial statement is the process of
selection, relation and evaluation.
The meaning of Financial Analysis is also known as analysis refers to the process of
determining according to Meta fund tutored is a process of evaluating the relationship
between components parts of a financial statements to obtain a better understanding of a
firm's position and performance. In the word of Myers" Financial statements analysis is
largely a study of relationship among the various financial factors in a series of statements".
The purpose of financial statements is so as to judge the profitability and financial soundness
of the firm.
Financial Analysis can be undertaken by management of the firm or by parties outside the
firm Owners, Creditors, Investors and Others. The structure of Assets, Liabilities and
Owner's equity and so on and the Profit & Loss account shows the results of operation during
a certain period of times in terms of the revenue obtained during a certain period of times in
terms of the revenue obtained and the cost incurred during the year. Thus, the financial
position and operational statement provides a summarized view of the financial position and
operation of the firm.
The Financial Analysis statements are thus an important aid to Financial Analysis.
The first task of the Financial Analyst is to select the information relevant to the decisions
under consideration from the total information contained in the financial statements. In the
brief Financial Analysis are the process of selection, relation and Evaluation.
Purpose of Analysis of financial statements
• To know the earning capacity or profitability.
• To know the solvency.
• To know the financial strengths.
Page No. 21
• To know the capability of payment of interest & dividends.
• To make comparative study with other firms.
• To know the trend of business.
• To know the efficiency of mgt.
• To provide useful information to mgt
Tools of Financial Statement Analysis
Various tools are used to evaluate the significance of financial statement data. Three
commonly used tools are these:
• Ratio Analysis
• Funds Flow Analysis
• Cash Flow Analysis
Ratio Analysis:
Fundamental Analysis has a very broad scope. One aspect looks at the general (qualitative)
factors of a company. The other side considers tangible and measurable factors (quantitative).
This means crunching and analyzing numbers from the financial statements. If used in
conjunction with other methods, quantitative analysis can produce excellent results.
Ratio analysis isn't just comparing different numbers from the balance sheet, income
statement, and cash flow statement. It's comparing the number against previous years, other
companies, the industry, or even the economy in general. Ratios look at the relationships
between individual values and relate them to how a company has performed in the past, and
might perform in the future.
Meaning of Ratio:
A ratio is one figure express in terms of another figure. It is a mathematical yardstick that
measures the relationship two figures, which are related to each other and mutually
interdependent. Ratio is express by dividing one figure by the other related figure. Thus a
ratio is an expression relating one number to another. It is simply the quotient of two
numbers. It can be expressed as a fraction or as a decimal or as a pure ratio or in absolute
figures as “so many times”. As accounting ratio is an expression relating two figures or
accounts or two sets of account heads or group contain in the financial statements.
• To know the capability of payment of interest & dividends.
• To make comparative study with other firms.
• To know the trend of business.
• To know the efficiency of mgt.
• To provide useful information to mgt
Tools of Financial Statement Analysis
Various tools are used to evaluate the significance of financial statement data. Three
commonly used tools are these:
• Ratio Analysis
• Funds Flow Analysis
• Cash Flow Analysis
Ratio Analysis:
Fundamental Analysis has a very broad scope. One aspect looks at the general (qualitative)
factors of a company. The other side considers tangible and measurable factors (quantitative).
This means crunching and analyzing numbers from the financial statements. If used in
conjunction with other methods, quantitative analysis can produce excellent results.
Ratio analysis isn't just comparing different numbers from the balance sheet, income
statement, and cash flow statement. It's comparing the number against previous years, other
companies, the industry, or even the economy in general. Ratios look at the relationships
between individual values and relate them to how a company has performed in the past, and
might perform in the future.
Meaning of Ratio:
A ratio is one figure express in terms of another figure. It is a mathematical yardstick that
measures the relationship two figures, which are related to each other and mutually
interdependent. Ratio is express by dividing one figure by the other related figure. Thus a
ratio is an expression relating one number to another. It is simply the quotient of two
numbers. It can be expressed as a fraction or as a decimal or as a pure ratio or in absolute
figures as “so many times”. As accounting ratio is an expression relating two figures or
accounts or two sets of account heads or group contain in the financial statements.
Page No. 22
Meaning of Ratio Analysis:
Ratio analysis is the method or process by which the relationship of items or group of items
in the financial statement are computed, determined and presented.
Ratio analysis is an attempt to derive quantitative measure or guides concerning the financial
health and profitability of business enterprises. Ratio analysis can be used both in trend and
static analysis. There are several ratios at the disposal of an analyst but their group of ratio he
would prefer depends on the purpose and the objective of analysis.
While a detailed explanation of ratio analysis is beyond the scope of this section, we will
focus on a technique, which is easy to use. It can provide you with a valuable investment
analysis tool.
This technique is called cross-sectional analysis. Cross-sectional analysis compares financial
ratios of several companies from the same industry. Ratio analysis can provide valuable
information about a company's financial health. A financial ratio measures a company's
performance in a specific area. For example, you could use a ratio of a company's debt to its
equity to measure a company's leverage. By comparing the leverage ratios of two companies,
you can determine which company uses greater debt in the conduct of its business. A
company whose leverage ratio is higher than a competitor's has more debt per equity. You
can use this information to make a judgment as to which company is a better investment risk.
However, you must be careful not to place too much importance on one ratio. You obtain a
better indication of the direction in which a company is moving when several ratios are taken
as a group.
Meaning of Ratio Analysis:
Ratio analysis is the method or process by which the relationship of items or group of items
in the financial statement are computed, determined and presented.
Ratio analysis is an attempt to derive quantitative measure or guides concerning the financial
health and profitability of business enterprises. Ratio analysis can be used both in trend and
static analysis. There are several ratios at the disposal of an analyst but their group of ratio he
would prefer depends on the purpose and the objective of analysis.
While a detailed explanation of ratio analysis is beyond the scope of this section, we will
focus on a technique, which is easy to use. It can provide you with a valuable investment
analysis tool.
This technique is called cross-sectional analysis. Cross-sectional analysis compares financial
ratios of several companies from the same industry. Ratio analysis can provide valuable
information about a company's financial health. A financial ratio measures a company's
performance in a specific area. For example, you could use a ratio of a company's debt to its
equity to measure a company's leverage. By comparing the leverage ratios of two companies,
you can determine which company uses greater debt in the conduct of its business. A
company whose leverage ratio is higher than a competitor's has more debt per equity. You
can use this information to make a judgment as to which company is a better investment risk.
However, you must be careful not to place too much importance on one ratio. You obtain a
better indication of the direction in which a company is moving when several ratios are taken
as a group.
Page No. 23
Based on Financial Statement
Accounting ratios express the relationship between figures taken from financial statements.
Figures may be taken from Balance Sheet, P& P A/C, or both. One-way of classification of
ratios is based upon the sources from which are taken.
1] Balance sheet ratio:
If the ratios are based on the figures of balance sheet, they are called Balance Sheet Ratios.
E.g. Ratio of current assets to current liabilities or Debt to equity ratio. While calculating
these ratios, there is no need to refer to the Revenue statement. These ratios study the
relationship between the assets & the liabilities, of the concern. These ratios help to judge the
liquidity, solvency & capital structure of the concern. Balance sheet ratios are Current ratio,
Liquid ratio, and Proprietary ratio, Capital gearing ratio, Debt equity ratio, and Stock working
capital ratio.
2] Revenue ratio:
Ratio based on the figures from the revenue statement is called revenue statement ratios.
These ratios study the relationship between the profitability & the sales of the concern.
Revenue ratios are Gross profit ratio, Operating ratio, Expense ratio, Net profit ratio, Net
operating profit ratio, Stock turnover ratio.
3] Composite ratio:
These ratios indicate the relationship between two items, of which one is found in the balance
sheet & other in revenue statement.
There are two types of composite ratios-
a) Some composite ratios study the relationship between the profits & the investments of the
concern. E.g. return on capital employed, return on proprietors fund, return on equity capital
etc.
b) Other composite ratios e.g. debtors turnover ratios, creditors turnover ratios, dividend
payout ratios, & debt service ratios
Based on Function:
Accounting ratios can also be classified according to their functions in to liquidity ratios,
leverage ratios, activity ratios, profitability ratios & turnover ratios.
Based on Financial Statement
Accounting ratios express the relationship between figures taken from financial statements.
Figures may be taken from Balance Sheet, P& P A/C, or both. One-way of classification of
ratios is based upon the sources from which are taken.
1] Balance sheet ratio:
If the ratios are based on the figures of balance sheet, they are called Balance Sheet Ratios.
E.g. Ratio of current assets to current liabilities or Debt to equity ratio. While calculating
these ratios, there is no need to refer to the Revenue statement. These ratios study the
relationship between the assets & the liabilities, of the concern. These ratios help to judge the
liquidity, solvency & capital structure of the concern. Balance sheet ratios are Current ratio,
Liquid ratio, and Proprietary ratio, Capital gearing ratio, Debt equity ratio, and Stock working
capital ratio.
2] Revenue ratio:
Ratio based on the figures from the revenue statement is called revenue statement ratios.
These ratios study the relationship between the profitability & the sales of the concern.
Revenue ratios are Gross profit ratio, Operating ratio, Expense ratio, Net profit ratio, Net
operating profit ratio, Stock turnover ratio.
3] Composite ratio:
These ratios indicate the relationship between two items, of which one is found in the balance
sheet & other in revenue statement.
There are two types of composite ratios-
a) Some composite ratios study the relationship between the profits & the investments of the
concern. E.g. return on capital employed, return on proprietors fund, return on equity capital
etc.
b) Other composite ratios e.g. debtors turnover ratios, creditors turnover ratios, dividend
payout ratios, & debt service ratios
Based on Function:
Accounting ratios can also be classified according to their functions in to liquidity ratios,
leverage ratios, activity ratios, profitability ratios & turnover ratios.
Page No. 24
1] Liquidity ratios:
It shows the relationship between the current assets & current liabilities of the concern e.g.
liquid ratios & current ratios.
2] Leverage ratios:
It shows the relationship between proprietors funds & debts used in financing the assets of
the concern e.g. capital gearing ratios, debt equity ratios, & Proprietary ratios.
3] Activity ratios:
It shows relationship between the sales & the assets. It is also known as Turnover ratios &
productivity ratios e.g. stock turnover ratios, debtors’ turnover ratios.
4] Profitability ratios:
a) It shows the relationship between profits & sales e.g. operating ratios, gross profitratios,
operating net profit ratios, expenses ratios
b) It shows the relationship between profit & investment e.g. return on investment, return on
equity capital.
5] Coverage ratios:
It shows the relationship between the profit on the one hand & the claims of the outsiders to
be paid out of such profit e.g. dividend payout ratios & debt service ratios.
Based on User:
1] Ratios for short-term creditors:
Current ratios, liquid ratios, stock working capital ratios
2] Ratios for the shareholders:
Return on proprietors fund, return on equity capital
3] Ratios for management:
Return on capital employed, turnover ratios, operating ratios, expenses ratios
1] Liquidity ratios:
It shows the relationship between the current assets & current liabilities of the concern e.g.
liquid ratios & current ratios.
2] Leverage ratios:
It shows the relationship between proprietors funds & debts used in financing the assets of
the concern e.g. capital gearing ratios, debt equity ratios, & Proprietary ratios.
3] Activity ratios:
It shows relationship between the sales & the assets. It is also known as Turnover ratios &
productivity ratios e.g. stock turnover ratios, debtors’ turnover ratios.
4] Profitability ratios:
a) It shows the relationship between profits & sales e.g. operating ratios, gross profitratios,
operating net profit ratios, expenses ratios
b) It shows the relationship between profit & investment e.g. return on investment, return on
equity capital.
5] Coverage ratios:
It shows the relationship between the profit on the one hand & the claims of the outsiders to
be paid out of such profit e.g. dividend payout ratios & debt service ratios.
Based on User:
1] Ratios for short-term creditors:
Current ratios, liquid ratios, stock working capital ratios
2] Ratios for the shareholders:
Return on proprietors fund, return on equity capital
3] Ratios for management:
Return on capital employed, turnover ratios, operating ratios, expenses ratios
Page No. 25
4] Ratios for long-term creditors:
Debt equity ratios, return on capital employed, proprietor ratios.
Liquidity Ratio: -
Liquidity refers to the ability of a firm to meet its short-term (usually up to 1 year)
obligations. The ratios, which indicate the liquidity of a company, are Current ratio,
Quick/Acid-Test ratio, and Cash ratio. These ratios are discussed below
4] Ratios for long-term creditors:
Debt equity ratios, return on capital employed, proprietor ratios.
Liquidity Ratio: -
Liquidity refers to the ability of a firm to meet its short-term (usually up to 1 year)
obligations. The ratios, which indicate the liquidity of a company, are Current ratio,
Quick/Acid-Test ratio, and Cash ratio. These ratios are discussed below
Page No. 26
Return on Capital Employed:-
Meaning:
The profitability of the firm can also be analyzed from the point of view of the total funds
employed in the firm. The term fund employed or the capital employed refers to the total
long-term source of funds. It means that the capital employed comprises of shareholder funds
plus long-term debts. Alternatively it can also be defined as fixed assets plus net working
capital.
Capital employed refers to the long-term funds invested by the creditors and the owners of a
firm. It is the sum of long-term liabilities and owner's equity. ROCE indicates the efficiency
with which the long-term funds of a firm are utilized.
Formula:
NPAT
Return on capital employed = *100
Capital employed
Financial
These ratios determine how quickly certain current assets can be converted into cash. They
are also called efficiency ratios or asset utilization ratios as they measure the efficiency of a
firm in managing assets. These ratios are based on the relationship between the level of
activity represented by sales or cost of goods sold and levels of investment in various assets.
The important turnover ratios are debtors turnover ratio, average collection period,
inventory/stock turnover ratio, fixed assets turnover ratio, and total assets turnover ratio.
These are described below:
Return on Capital Employed:-
Meaning:
The profitability of the firm can also be analyzed from the point of view of the total funds
employed in the firm. The term fund employed or the capital employed refers to the total
long-term source of funds. It means that the capital employed comprises of shareholder funds
plus long-term debts. Alternatively it can also be defined as fixed assets plus net working
capital.
Capital employed refers to the long-term funds invested by the creditors and the owners of a
firm. It is the sum of long-term liabilities and owner's equity. ROCE indicates the efficiency
with which the long-term funds of a firm are utilized.
Formula:
NPAT
Return on capital employed = *100
Capital employed
Financial
These ratios determine how quickly certain current assets can be converted into cash. They
are also called efficiency ratios or asset utilization ratios as they measure the efficiency of a
firm in managing assets. These ratios are based on the relationship between the level of
activity represented by sales or cost of goods sold and levels of investment in various assets.
The important turnover ratios are debtors turnover ratio, average collection period,
inventory/stock turnover ratio, fixed assets turnover ratio, and total assets turnover ratio.
These are described below:
Page No. 27
Advantages of Ratio Analysis
Financial ratios are essentially concerned with the identification of significant accounting
data relationships, which give the decision-maker insights into the financial performance of a
company. The advantages of ratio analysis can be summarized as follows:
➢ Ratios facilitate conducting trend analysis, which is important for decision making and
forecasting.
➢ Ratio analysis helps in the assessment of the liquidity, operating efficiency, profitability
and solvency of a firm.
➢ Ratio analysis provides a basis for both intra-firm as well as inter-firm comparisons.
➢ The comparison of actual ratios with base year ratios or standard ratios helps the
management analyze the financial performance of the firm.
Limitations of Ratio Analysis
Ratio analysis has its limitations. These limitations are described below:
1] Information problems
➢ Ratios require quantitative information for analysis but it is not decisive about
analytical output.
➢ The figures in a set of accounts are likely to be at least several months out of date, and
so might not give a proper indication of the company’s current financial position.
➢ Where historical cost convention is used, asset valuations in the balance sheet could
be misleading. Ratios based on this information will not be very useful for decision-
making.
2] Comparison of performance over time
➢ When comparing performance over time, there is need to consider the changes in
price. The movement in performance should be in line with the changes in price.
➢ When comparing performance over time, there is need to consider the changes in
technology. The movement in performance should be in line with the changes in
technology.
Advantages of Ratio Analysis
Financial ratios are essentially concerned with the identification of significant accounting
data relationships, which give the decision-maker insights into the financial performance of a
company. The advantages of ratio analysis can be summarized as follows:
➢ Ratios facilitate conducting trend analysis, which is important for decision making and
forecasting.
➢ Ratio analysis helps in the assessment of the liquidity, operating efficiency, profitability
and solvency of a firm.
➢ Ratio analysis provides a basis for both intra-firm as well as inter-firm comparisons.
➢ The comparison of actual ratios with base year ratios or standard ratios helps the
management analyze the financial performance of the firm.
Limitations of Ratio Analysis
Ratio analysis has its limitations. These limitations are described below:
1] Information problems
➢ Ratios require quantitative information for analysis but it is not decisive about
analytical output.
➢ The figures in a set of accounts are likely to be at least several months out of date, and
so might not give a proper indication of the company’s current financial position.
➢ Where historical cost convention is used, asset valuations in the balance sheet could
be misleading. Ratios based on this information will not be very useful for decision-
making.
2] Comparison of performance over time
➢ When comparing performance over time, there is need to consider the changes in
price. The movement in performance should be in line with the changes in price.
➢ When comparing performance over time, there is need to consider the changes in
technology. The movement in performance should be in line with the changes in
technology.
Page No. 28
➢ Changes in accounting policy may affect the comparison of results between different
accounting years as misleading.
3] Inter-firm comparison
➢ Companies may have different capital structures and to make comparison of
performance when one is all equity financed and another is a geared company it may
not be a good analysis.
➢ Selective application of government incentives to various companies may also distort
intercompany comparison. Comparing the performance of two enterprises may be
misleading.
➢ Inter-firm comparison may not be useful unless the firms compared are of the same
size and age, and employ similar production methods and accounting practices.
➢ Even within a company, comparisons can be distorted by changes in the price level.
➢ Ratios provide only quantitative information, not qualitative information.
➢ Ratios are calculated on the basis of past financial statements. They do not indicate
future trends and they do not consider economic conditions.
Purpose of Ratio Analysis:
1] To identify aspects of a business’s performance to aid decision making
2] Quantitative process – may need to be supplemented by qualitative factors to get a
complete picture.
3] 5 main areas-
➢ Liquidity – the ability of the firm to pay its way
➢ Investment/shareholders – information to enable decisions to be made on the
extent of the risk and the earning potential of a business investment
➢ Gearing – information on the relationship between the exposure of the business to
loans as opposed to share capital
➢ Profitability – how effective the firm is at generating profits given sales and or its
capital assets
➢ Financial – the rate at which the company sells its stock and the efficiency with
which it uses its assets
➢ Changes in accounting policy may affect the comparison of results between different
accounting years as misleading.
3] Inter-firm comparison
➢ Companies may have different capital structures and to make comparison of
performance when one is all equity financed and another is a geared company it may
not be a good analysis.
➢ Selective application of government incentives to various companies may also distort
intercompany comparison. Comparing the performance of two enterprises may be
misleading.
➢ Inter-firm comparison may not be useful unless the firms compared are of the same
size and age, and employ similar production methods and accounting practices.
➢ Even within a company, comparisons can be distorted by changes in the price level.
➢ Ratios provide only quantitative information, not qualitative information.
➢ Ratios are calculated on the basis of past financial statements. They do not indicate
future trends and they do not consider economic conditions.
Purpose of Ratio Analysis:
1] To identify aspects of a business’s performance to aid decision making
2] Quantitative process – may need to be supplemented by qualitative factors to get a
complete picture.
3] 5 main areas-
➢ Liquidity – the ability of the firm to pay its way
➢ Investment/shareholders – information to enable decisions to be made on the
extent of the risk and the earning potential of a business investment
➢ Gearing – information on the relationship between the exposure of the business to
loans as opposed to share capital
➢ Profitability – how effective the firm is at generating profits given sales and or its
capital assets
➢ Financial – the rate at which the company sells its stock and the efficiency with
which it uses its assets
Page No. 29
Role of Ratio Analysis:
It is true that the technique of ratio analysis is not a creative technique in the sense that it uses
the same figure & information, which is already appearing in the financial statement. At the
same time, it is true that what can be achieved by the technique of ratio analysis cannot be
achieved by the mere preparation of financial statement.
Ratio analysis helps to appraise the firm in terms of their profitability & efficiency of
performance, either individually or in relation to those of other firms in the same industry.
The process of this appraisal is not complete until the ratio so computed can be compared
with something, as the ratio all by them do not mean anything. This comparison may be in
the form of intra firm comparison, inter firm comparison or comparison with standard ratios.
Thus proper comparison of ratios may reveal where a firm is placed as compared with earlier
period or in comparison with the other firms in the same industry.
Ratio analysis is one of the best possible techniques available to the management to impart
the basic functions like planning & control. As the future is closely related to the immediate
past, ratio calculated on the basis of historical financial statements may be of good assistance
to predict the future. Ratio analysis also helps to locate & point out the various areas, which
need the management attention in order to improve the situation.
As the ratio analysis is concerned with all the aspect of a firms financial analysis i.e.
liquidity, solvency, activity, profitability & overall performance, it enables the interested
persons to know the financial & operational characteristics of an organisation & take the
suitable decision.
Role of Ratio Analysis:
It is true that the technique of ratio analysis is not a creative technique in the sense that it uses
the same figure & information, which is already appearing in the financial statement. At the
same time, it is true that what can be achieved by the technique of ratio analysis cannot be
achieved by the mere preparation of financial statement.
Ratio analysis helps to appraise the firm in terms of their profitability & efficiency of
performance, either individually or in relation to those of other firms in the same industry.
The process of this appraisal is not complete until the ratio so computed can be compared
with something, as the ratio all by them do not mean anything. This comparison may be in
the form of intra firm comparison, inter firm comparison or comparison with standard ratios.
Thus proper comparison of ratios may reveal where a firm is placed as compared with earlier
period or in comparison with the other firms in the same industry.
Ratio analysis is one of the best possible techniques available to the management to impart
the basic functions like planning & control. As the future is closely related to the immediate
past, ratio calculated on the basis of historical financial statements may be of good assistance
to predict the future. Ratio analysis also helps to locate & point out the various areas, which
need the management attention in order to improve the situation.
As the ratio analysis is concerned with all the aspect of a firms financial analysis i.e.
liquidity, solvency, activity, profitability & overall performance, it enables the interested
persons to know the financial & operational characteristics of an organisation & take the
suitable decision.
Page No. 30
COMPANY PROFILE
Reliance Jio Infocomm Limited (RJIL), a subsidiary
of Reliance Industries Limited (RIL), India’s largest
private sector company, is the first telecom operator
to hold pan India Unified License. This license
authorises RJIL to provide all telecommunication services except Global Mobile Personal
Communication by Satellite Service.
Reliance Jio promises to shape the future of India by providing end-to-end digital solutions
for businesses, institutions and households and seamlessly bridging the rural-urban divide.
Home to the world’s second largest population of 1.2 billion, India is a young nation with
63% of its population under the age of 35 years. It has a fast growing digital audience with
800 million mobile connections and over 200 million internet users. Reliance thoroughly
believes in India’s potential to lead the world with its capabilities in innovation. Towards that
end, Reliance envisages creation of a digital revolution in India.
Reliance Jio aims to enable this transformation by creating not just a cutting-edge voice and
broadband network, but also a powerful ecosystem on which a range of rich digital services
will be enabled – a unique green-field opportunity.
The three-pronged focus on broadband networks, affordable smartphones and the availability
of rich content and applications has enabled Jio to create an integrated business strategy from
COMPANY PROFILE
Reliance Jio Infocomm Limited (RJIL), a subsidiary
of Reliance Industries Limited (RIL), India’s largest
private sector company, is the first telecom operator
to hold pan India Unified License. This license
authorises RJIL to provide all telecommunication services except Global Mobile Personal
Communication by Satellite Service.
Reliance Jio promises to shape the future of India by providing end-to-end digital solutions
for businesses, institutions and households and seamlessly bridging the rural-urban divide.
Home to the world’s second largest population of 1.2 billion, India is a young nation with
63% of its population under the age of 35 years. It has a fast growing digital audience with
800 million mobile connections and over 200 million internet users. Reliance thoroughly
believes in India’s potential to lead the world with its capabilities in innovation. Towards that
end, Reliance envisages creation of a digital revolution in India.
Reliance Jio aims to enable this transformation by creating not just a cutting-edge voice and
broadband network, but also a powerful ecosystem on which a range of rich digital services
will be enabled – a unique green-field opportunity.
The three-pronged focus on broadband networks, affordable smartphones and the availability
of rich content and applications has enabled Jio to create an integrated business strategy from
Page No. 31
the very beginning, and today, Jio is capable of offering a unique combination of telecom,
high speed data, digital commerce, media and payment services.
HISTORY OF THE COMPANY
The company was registered in Ambawadi, Ahmedabad, Gujarat on 15 February 2007 as
Infotel Broadband Services Limited (IBSL). In June 2010, Reliance Industries (RIL) bought a
95% stake in IBSL for 4,800 crore (equivalent to ₹87 billion or US$1.2 billion in 2019).
Although unlisted, IBSL was the only company that won broadband spectrum in all 22 circles
in India in the 4G auction that took place earlier that year.
[10]
Later continuing as RIL's
telecom subsidiary, Infotel Broadband Services Limited was renamed as Reliance Jio
Infocomm Limited (RJIL) in January 2013.
In June 2015, Jio announced that it would start its operations throughout the country by the
end of 2015.
[12]
However, four months later in October, the company postponed the launch to
the first quarter of the financial year 2016–2017.
Later, in July 2015, a PIL filed in the Supreme Court by an NGO called the Centre for Public
Interest Litigation, through Prashant Bhushan, challenged the grant of a pan-India license to
Jio by the Government of India. The PIL also alleged that the firm was being allowed to
provide voice telephony along with its 4G data service, by paying an additional fee of
just ₹165.8 crore (US$23 million) which was arbitrary and unreasonable, and contributed to a
loss of ₹2,284.2 crore (US$320 million) to the exchequer.
[14][15]
The Indian Department of
Telecommunications (DoT), however, explained that the rules for 3G and BWA spectrum
didn't restrict BWA winners from providing voice telephony. As a result, the PIL was
revoked, and the accusations were dismissed.
The 4G services were launched internally on 27 December 2015.
[17]
The company
commercially launched its 4G services on 5 September 2016,
[6]
offering free data and voice
services till 31 December,
[18]
which was later extended till 31 March 2017. Within the first
month, Jio announced that it had acquired 1.6 crore (16 million) subscribers and has crossed
5 crore (50 million) subscriber mark in 83 days since its launch,
[22]
subsequently crossing 100
million subscribers on 22 February 2017.
[23]
By October 2017, it had about 13 crore (130
million) subscribers.
the very beginning, and today, Jio is capable of offering a unique combination of telecom,
high speed data, digital commerce, media and payment services.
HISTORY OF THE COMPANY
The company was registered in Ambawadi, Ahmedabad, Gujarat on 15 February 2007 as
Infotel Broadband Services Limited (IBSL). In June 2010, Reliance Industries (RIL) bought a
95% stake in IBSL for 4,800 crore (equivalent to ₹87 billion or US$1.2 billion in 2019).
Although unlisted, IBSL was the only company that won broadband spectrum in all 22 circles
in India in the 4G auction that took place earlier that year.
[10]
Later continuing as RIL's
telecom subsidiary, Infotel Broadband Services Limited was renamed as Reliance Jio
Infocomm Limited (RJIL) in January 2013.
In June 2015, Jio announced that it would start its operations throughout the country by the
end of 2015.
[12]
However, four months later in October, the company postponed the launch to
the first quarter of the financial year 2016–2017.
Later, in July 2015, a PIL filed in the Supreme Court by an NGO called the Centre for Public
Interest Litigation, through Prashant Bhushan, challenged the grant of a pan-India license to
Jio by the Government of India. The PIL also alleged that the firm was being allowed to
provide voice telephony along with its 4G data service, by paying an additional fee of
just ₹165.8 crore (US$23 million) which was arbitrary and unreasonable, and contributed to a
loss of ₹2,284.2 crore (US$320 million) to the exchequer.
[14][15]
The Indian Department of
Telecommunications (DoT), however, explained that the rules for 3G and BWA spectrum
didn't restrict BWA winners from providing voice telephony. As a result, the PIL was
revoked, and the accusations were dismissed.
The 4G services were launched internally on 27 December 2015.
[17]
The company
commercially launched its 4G services on 5 September 2016,
[6]
offering free data and voice
services till 31 December,
[18]
which was later extended till 31 March 2017. Within the first
month, Jio announced that it had acquired 1.6 crore (16 million) subscribers and has crossed
5 crore (50 million) subscriber mark in 83 days since its launch,
[22]
subsequently crossing 100
million subscribers on 22 February 2017.
[23]
By October 2017, it had about 13 crore (130
million) subscribers.
Page No. 32
Products and services
Mobile broadband
The company launched its 4G broadband services throughout India in September 2016. It was
slated to release in December 2015 after some reports said that the company was waiting to
receive final permits from the government.
[12]
Jio offers fourth-generation (4G) data and
voice services, along with peripheral services like instant messaging and streaming movies
and music.
JioFiber
In August 2018, Jio began to test a new triple play fiber to the home service known
tentatively as Jio GigaFiber, including broadband internet with speeds ranging from 100 to
1000 Mbit/s, as well as television and landline telephone services.
In August 2019, it was announced that the service would officially launch on 5 September
2019 as JioFiber, in honour of the company's third anniversary. Jio also announced plans to
offer streaming of films still in theatres ("First Day First Show") to eligible JioFiber
subscribers.
In the year 2015, the company has a network of more than 250,000 km (160,000 mi) of fiber
optic cables in the country, over which it will be partnering with local cable operators to get
broader connectivity for its broadband services.
Jio Business
In March 2021, the company has launched connectivity solutions for businesses bundled with
services provided by Jio Platforms, Reliance Retail and Office 365.
Jio Branded Devices
LYF smartphones
Main article: LYF
An image of LYF WATER 2 phone with IPS display. In June 2015, Jio entered into an
agreement with domestic handset maker Intex to supply 4G handsets capable of voice over
LTE (VoLTE). However, in October 2015, Jio announced that it would be launching its own
mobile handset brand named LYF.
Products and services
Mobile broadband
The company launched its 4G broadband services throughout India in September 2016. It was
slated to release in December 2015 after some reports said that the company was waiting to
receive final permits from the government.
[12]
Jio offers fourth-generation (4G) data and
voice services, along with peripheral services like instant messaging and streaming movies
and music.
JioFiber
In August 2018, Jio began to test a new triple play fiber to the home service known
tentatively as Jio GigaFiber, including broadband internet with speeds ranging from 100 to
1000 Mbit/s, as well as television and landline telephone services.
In August 2019, it was announced that the service would officially launch on 5 September
2019 as JioFiber, in honour of the company's third anniversary. Jio also announced plans to
offer streaming of films still in theatres ("First Day First Show") to eligible JioFiber
subscribers.
In the year 2015, the company has a network of more than 250,000 km (160,000 mi) of fiber
optic cables in the country, over which it will be partnering with local cable operators to get
broader connectivity for its broadband services.
Jio Business
In March 2021, the company has launched connectivity solutions for businesses bundled with
services provided by Jio Platforms, Reliance Retail and Office 365.
Jio Branded Devices
LYF smartphones
Main article: LYF
An image of LYF WATER 2 phone with IPS display. In June 2015, Jio entered into an
agreement with domestic handset maker Intex to supply 4G handsets capable of voice over
LTE (VoLTE). However, in October 2015, Jio announced that it would be launching its own
mobile handset brand named LYF.
Page No. 33
On 25 January 2016, the company launched its LYF smartphone series starting with Water 1,
through its chain of electronic retail outlets, Reliance Retail. Three more handset models have
been released so far, namely Water 2, Earth 1, and Flame 1.
Illustration of a JioPhone
JioPhone is a line of feature phones marketed by Jio. The first model, released in August
2017 (with public pre-orders beginning 24 August 2017), was positioned as an "affordable"
LTE-compatible feature phone. It runs the KaiOS platform (derived from the defunct Firefox
OS), and includes a 2.4-inch display, a dual-core processor, 4 GB of internal storage, near-
field communication support, a suite of Jio-branded apps (including the voice
assistant HelloJio), and a Jio-branded application store. It also supports a "TV cable"
accessory for output to an external display.
In July 2018, the company unveiled the JioPhone 2, an updated model in a keyboard bar form
factor with a QWERTY keyboard and horizontal display. Jio also announced
that Facebook, WhatsApp, and YouTube apps would become available for the two phones.
Jionet Wi-Fi
In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket stadiums
hosting the 2016 ICC World Twenty20 matches. .
JioPhone Next
On 24 June 2021, Mukesh Ambani announced the launch of JioPhone Next. It is a fully-
featured Android smartphone co-developed with Google as part of its long-term partnership.
The budget smartphone will be launched in India on 10 September 2021
On 25 January 2016, the company launched its LYF smartphone series starting with Water 1,
through its chain of electronic retail outlets, Reliance Retail. Three more handset models have
been released so far, namely Water 2, Earth 1, and Flame 1.
Illustration of a JioPhone
JioPhone is a line of feature phones marketed by Jio. The first model, released in August
2017 (with public pre-orders beginning 24 August 2017), was positioned as an "affordable"
LTE-compatible feature phone. It runs the KaiOS platform (derived from the defunct Firefox
OS), and includes a 2.4-inch display, a dual-core processor, 4 GB of internal storage, near-
field communication support, a suite of Jio-branded apps (including the voice
assistant HelloJio), and a Jio-branded application store. It also supports a "TV cable"
accessory for output to an external display.
In July 2018, the company unveiled the JioPhone 2, an updated model in a keyboard bar form
factor with a QWERTY keyboard and horizontal display. Jio also announced
that Facebook, WhatsApp, and YouTube apps would become available for the two phones.
Jionet Wi-Fi
In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket stadiums
hosting the 2016 ICC World Twenty20 matches. .
JioPhone Next
On 24 June 2021, Mukesh Ambani announced the launch of JioPhone Next. It is a fully-
featured Android smartphone co-developed with Google as part of its long-term partnership.
The budget smartphone will be launched in India on 10 September 2021
Page No. 34
A Vision That Touches All
Reliance’s vision for India is that broadband and digital services will no longer be a luxury
item. Rather, Reliance envisions an India where these are basic necessities to be consumed in
abundance by consumers and small businesses alike, as much in far-flung villages as in our
largest cities. The initiatives are truly aligned with the Government of India's ‘Digital India’
vision for our nation.
Affordable Devices: Jio has worked with all the leading device manufacturers of the world to
ensure availability of 4G LTE smartphones across all price points – from ultra-premium
models on one hand, to entry level models on the other.
Digital Communication: The application Jio4GVoice brings the 4G communication suite to
all smartphones. With its RCS (Rich Communication Services) features like Enriched calling,
Chat, File share and Unified Messaging, it redefines the calling and messaging experience. It
also enables Jio’s cutting edge voice and video call service on non-VoLTE smartphones.
Digital Currency: Jio envisions a new India which will use digital currency instead of paper
money for a more secure and convenient way to transact. Jio Money, Jio’s digital currency
and digital payments business, will play a crucial role in this by offering a platform for
ubiquitous, affordable and secure digital payments.
Jio Drive: Micro and small businesses will soon have access to cutting-edge cloud storage
technologies which were once affordable to big companies only, giving them a new edge to
compete on a global landscape. Jio Drive is an application that brings powerful cloud
capabilities to every smartphone. Using Jio Drive, anyone can store, sync and share any
content between their own devices and also with their friends.
Digital Education: Teachers and students from far flung areas can connect with each other,
crowd-source knowledge and adapt new age learning techniques and thus lift the level of
education to a completely different plane.
Digital Healthcare: Expert medical advice would be available anytime, anywhere - with
medical practitioners able to grow their practice without constraint, and provide quality of life
to the crores that make up our country.
A Vision That Touches All
Reliance’s vision for India is that broadband and digital services will no longer be a luxury
item. Rather, Reliance envisions an India where these are basic necessities to be consumed in
abundance by consumers and small businesses alike, as much in far-flung villages as in our
largest cities. The initiatives are truly aligned with the Government of India's ‘Digital India’
vision for our nation.
Affordable Devices: Jio has worked with all the leading device manufacturers of the world to
ensure availability of 4G LTE smartphones across all price points – from ultra-premium
models on one hand, to entry level models on the other.
Digital Communication: The application Jio4GVoice brings the 4G communication suite to
all smartphones. With its RCS (Rich Communication Services) features like Enriched calling,
Chat, File share and Unified Messaging, it redefines the calling and messaging experience. It
also enables Jio’s cutting edge voice and video call service on non-VoLTE smartphones.
Digital Currency: Jio envisions a new India which will use digital currency instead of paper
money for a more secure and convenient way to transact. Jio Money, Jio’s digital currency
and digital payments business, will play a crucial role in this by offering a platform for
ubiquitous, affordable and secure digital payments.
Jio Drive: Micro and small businesses will soon have access to cutting-edge cloud storage
technologies which were once affordable to big companies only, giving them a new edge to
compete on a global landscape. Jio Drive is an application that brings powerful cloud
capabilities to every smartphone. Using Jio Drive, anyone can store, sync and share any
content between their own devices and also with their friends.
Digital Education: Teachers and students from far flung areas can connect with each other,
crowd-source knowledge and adapt new age learning techniques and thus lift the level of
education to a completely different plane.
Digital Healthcare: Expert medical advice would be available anytime, anywhere - with
medical practitioners able to grow their practice without constraint, and provide quality of life
to the crores that make up our country.
Page No. 35
Digital Entertainment and social connectivity: Jio Chat is a powerful communication
application that integrates chat, voice, video calling, conferencing, file sharing, photo sharing
and much more. Jio Play enables users to watch HD TV anytime, anywhere on any device,
from hundreds of channels, across categories and languages. Jio Beats is a premier digital
music streaming service that gives instant access to millions of songs and curated playlists.
Jio Mags and Jio News provide access to the most popular collection of magazines and news
from leading publishing houses across multiple languages.
Digital Entrepreneurship: Jio is building is a powerful platform on which a range of rich
digital products and services can be enabled - digital currency, digital commerce, digital
education, digital healthcare, e-governance, Smart Cities, M2M and the Internet of Things. It
does not matter whether these services are created by Jio itself, its ecosystem partners or
anyone globally. Reliance is committed to the principles of Net Neutrality.
Laying the Foundation for the Future
Reliance Jio is creating the most extensive and future-proof network in India, and perhaps, in
the world. It will provide next generation legacy-free digital services over an end-to-end all-
IP network, which can be seamlessly upgraded even to 5G and beyond. In addition to the
existing pan India 2300 MHz spectrum and 1800 MHz in 14 circles, Jio invested over Rs
10,000 crore during this year's auction to acquire 800 MHz spectrum in 10 circles and 1800
MHz spectrum in 6 circles. This brings the cumulative investment in spectrum assets to
nearly Rs 34,000 crores. Jio now has the largest footprint of liberalized spectrum in the
country, acquired in an extremely cost effective manner.
Reliance Jio has laid more than 2.5 lakh kilometres of fibre-optic cables, covering 18,000
cities and over one lakh villages, with the aim of covering 100% of the nation’s population by
2018. It has an initial end-to-end capacity to serve in excess of 100 million wireless
broadband and 20 million Fibre-to-Home customers. Reliance Jio has also built nearly half-a-
million square feet of cloud data centres and a multi-Terabit capacity international network.
The infrastructure is being built in partnership with some of the world’s most technologically
advanced companies.
Digital Entertainment and social connectivity: Jio Chat is a powerful communication
application that integrates chat, voice, video calling, conferencing, file sharing, photo sharing
and much more. Jio Play enables users to watch HD TV anytime, anywhere on any device,
from hundreds of channels, across categories and languages. Jio Beats is a premier digital
music streaming service that gives instant access to millions of songs and curated playlists.
Jio Mags and Jio News provide access to the most popular collection of magazines and news
from leading publishing houses across multiple languages.
Digital Entrepreneurship: Jio is building is a powerful platform on which a range of rich
digital products and services can be enabled - digital currency, digital commerce, digital
education, digital healthcare, e-governance, Smart Cities, M2M and the Internet of Things. It
does not matter whether these services are created by Jio itself, its ecosystem partners or
anyone globally. Reliance is committed to the principles of Net Neutrality.
Laying the Foundation for the Future
Reliance Jio is creating the most extensive and future-proof network in India, and perhaps, in
the world. It will provide next generation legacy-free digital services over an end-to-end all-
IP network, which can be seamlessly upgraded even to 5G and beyond. In addition to the
existing pan India 2300 MHz spectrum and 1800 MHz in 14 circles, Jio invested over Rs
10,000 crore during this year's auction to acquire 800 MHz spectrum in 10 circles and 1800
MHz spectrum in 6 circles. This brings the cumulative investment in spectrum assets to
nearly Rs 34,000 crores. Jio now has the largest footprint of liberalized spectrum in the
country, acquired in an extremely cost effective manner.
Reliance Jio has laid more than 2.5 lakh kilometres of fibre-optic cables, covering 18,000
cities and over one lakh villages, with the aim of covering 100% of the nation’s population by
2018. It has an initial end-to-end capacity to serve in excess of 100 million wireless
broadband and 20 million Fibre-to-Home customers. Reliance Jio has also built nearly half-a-
million square feet of cloud data centres and a multi-Terabit capacity international network.
The infrastructure is being built in partnership with some of the world’s most technologically
advanced companies.
Page No. 36
Our motto “Growth is Life” aptly captures the ever-evolving spirit of Reliance. Our activities
span hydrocarbon exploration and production, petroleum refining and marketing,
petrochemicals, retail and telecommunications. In each of these areas, we are committed to
innovation-led, exponential growth. Our vision has pushed us to achieve global leadership in
many of our businesses – including our position as the largest polyester yarn and fibre
producer in the world. Reliance Industries Limited is a Fortune 500 company and the largest
private sector corporation in India.
In This Section
• About
• Leadership
• Manufacturing Excellence
• R&D
• Products & Brands
• Corporate Social Responsibility
As Reliance sets sights on even more ambitious goals, we remain inspired and guided by the
story and philosophy of our founder chairman Dhirubhai Ambani. Hailing from modest
means, he followed his dream to create India's largest company. Reliance as an organisation
has adopted this ethos of converting adversity into opportunity and making the impossible
possible by challenging conventional wisdom.
Our ultimate aim has always been – and will always be – to touch the lives of people in a
positive way.
Corporate Awards
2016
Winner of the Confederation of Indian Industries’ ‘Sustainable Plus Platinum Award’
Our motto “Growth is Life” aptly captures the ever-evolving spirit of Reliance. Our activities
span hydrocarbon exploration and production, petroleum refining and marketing,
petrochemicals, retail and telecommunications. In each of these areas, we are committed to
innovation-led, exponential growth. Our vision has pushed us to achieve global leadership in
many of our businesses – including our position as the largest polyester yarn and fibre
producer in the world. Reliance Industries Limited is a Fortune 500 company and the largest
private sector corporation in India.
In This Section
• About
• Leadership
• Manufacturing Excellence
• R&D
• Products & Brands
• Corporate Social Responsibility
As Reliance sets sights on even more ambitious goals, we remain inspired and guided by the
story and philosophy of our founder chairman Dhirubhai Ambani. Hailing from modest
means, he followed his dream to create India's largest company. Reliance as an organisation
has adopted this ethos of converting adversity into opportunity and making the impossible
possible by challenging conventional wisdom.
Our ultimate aim has always been – and will always be – to touch the lives of people in a
positive way.
Corporate Awards
2016
Winner of the Confederation of Indian Industries’ ‘Sustainable Plus Platinum Award’
Page No. 37
2015
Winner of the Platts Global Energy Award for Corporate Social Responsibility
2013
Ranked 107th. on the Fortune Global 500 list
2013
Ranked 25th. on ICIS Top 100 Chemical Companies list
2012
Certified as 'Responsible Care Company' by the American Chemistry Council
2012
Jamnagar Refinery listed among the world’s top five manufacturing units by Discovery
Channel
2010
Ranked second amongst BCG’s ten top global ‘Sustainable Value Creators’
2010
Reliance E&P's KG-D6 won Marico Innovation Foundation’s Innovation for India Award
for combined synthesis of advanced technologies, extreme engineering, innovative
execution, yielding unprecedented results and impact on India's energy security
2015
Winner of the Platts Global Energy Award for Corporate Social Responsibility
2013
Ranked 107th. on the Fortune Global 500 list
2013
Ranked 25th. on ICIS Top 100 Chemical Companies list
2012
Certified as 'Responsible Care Company' by the American Chemistry Council
2012
Jamnagar Refinery listed among the world’s top five manufacturing units by Discovery
Channel
2010
Ranked second amongst BCG’s ten top global ‘Sustainable Value Creators’
2010
Reliance E&P's KG-D6 won Marico Innovation Foundation’s Innovation for India Award
for combined synthesis of advanced technologies, extreme engineering, innovative
execution, yielding unprecedented results and impact on India's energy security
Page No. 38
CHAPTER - 3
DATA ANALYSIS
AND
INTERPRETATION
CHAPTER - 3
DATA ANALYSIS
AND
INTERPRETATION
Page No. 39
CHAPTER - 7
DATA ANALYSIS AND INTERPRETATION
CURRENT RATIO :-
Current ratio = current assets
Current liabilities
YEAR RATIOS
Year – 2018 .97
Year – 2019 1.07
Year - 2020 1.10
INTERPRETATION:
The standard norm for current ratio is 1. It is evident that in the year 2019-2020 current ratios
1.07 is satisfactory. In remaining year 2018 current ratio is less than 1 which is not
satisfactory. Therefore it can be calculated that the liquidity performance of company is good.
0.97
1.07
1.1
0
0.2
0.4
0.6
0.8
1
1.2
2018 2019 2020
CURRENT RATIO
2019-2020
2018-2019
2017-2018
CHAPTER - 7
DATA ANALYSIS AND INTERPRETATION
CURRENT RATIO :-
Current ratio = current assets
Current liabilities
YEAR RATIOS
Year – 2018 .97
Year – 2019 1.07
Year - 2020 1.10
INTERPRETATION:
The standard norm for current ratio is 1. It is evident that in the year 2019-2020 current ratios
1.07 is satisfactory. In remaining year 2018 current ratio is less than 1 which is not
satisfactory. Therefore it can be calculated that the liquidity performance of company is good.
0.97
1.07
1.1
0
0.2
0.4
0.6
0.8
1
1.2
2018 2019 2020
CURRENT RATIO
2019-2020
2018-2019
2017-2018
Page No. 40
QUICK RATIO:
Quick Ratio =
������� ������ – (����� ��� �����??????� �??????������)
������� ????????????��??????�??????�??????�� – ���� ���������
YEAR RATIOS
Year – 2018 .40
Year – 2019 .60
Year - 2020 .50
INTERPRETATION:
It is more test of liquidity than the current ratio. Generally, a quick ratio is 0:50. It is considered to
represent a satisfactory current financial condition. The quick ratio has never exceeded the standard
ratio. The quick ratio has been increased from .40 to .60 in 2018 to 2019. Therefore, it can be
concluded the liquidity performance of the company is good.
0.4
0.6
0.5
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2018 2019 2020
QUICK RATIO
2019-20
2018-19
2017-18
QUICK RATIO:
Quick Ratio =
������� ������ – (����� ��� �����??????� �??????������)
������� ????????????��??????�??????�??????�� – ���� ���������
YEAR RATIOS
Year – 2018 .40
Year – 2019 .60
Year - 2020 .50
INTERPRETATION:
It is more test of liquidity than the current ratio. Generally, a quick ratio is 0:50. It is considered to
represent a satisfactory current financial condition. The quick ratio has never exceeded the standard
ratio. The quick ratio has been increased from .40 to .60 in 2018 to 2019. Therefore, it can be
concluded the liquidity performance of the company is good.
0.4
0.6
0.5
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2018 2019 2020
QUICK RATIO
2019-20
2018-19
2017-18
Page No. 41
NET PROFIT RATIO:
Net Profit Ratio =
??????�� ??????���??????�
??????����
x 100
YEAR
RATIOS
Year – 2018 7.21
Year – 2019 9.79
Year - 2020 8.98
INTERPRETATION:
In this the net profit ratio is increased in 2015-2016 as 9.79. So in the year 2015-2016 utilized the net
profit effectually.
7.21
9.79
8.98
0
2
4
6
8
10
12
2015 2016 2017
NET PROFIT RATIO
2016-2017
2015-2016
2014-2015
NET PROFIT RATIO:
Net Profit Ratio =
??????�� ??????���??????�
??????����
x 100
YEAR
RATIOS
Year – 2018 7.21
Year – 2019 9.79
Year - 2020 8.98
INTERPRETATION:
In this the net profit ratio is increased in 2015-2016 as 9.79. So in the year 2015-2016 utilized the net
profit effectually.
7.21
9.79
8.98
0
2
4
6
8
10
12
2015 2016 2017
NET PROFIT RATIO
2016-2017
2015-2016
2014-2015
Page No. 42
RETURN ON ASSETS
Return on assets = Net profit x 100
Total assets
INTERPRETATION:
In the year 2018-2019 company got the higher return on assets as 12.4 on the other hand lower ratio
was observed in the year 2019-2020. Therefore, it indicates ideal capacity of assets.
10.53
12.4
8.12
0
2
4
6
8
10
12
14
2017-18 2018-19 2019-20
RETURN ON ASSETS
2019-20
2018-19
2017-18
YEAR
RATIOS
Year – 2018 10.53
Year – 2019 12.40
Year - 2020 8.12
RETURN ON ASSETS
Return on assets = Net profit x 100
Total assets
INTERPRETATION:
In the year 2018-2019 company got the higher return on assets as 12.4 on the other hand lower ratio
was observed in the year 2019-2020. Therefore, it indicates ideal capacity of assets.
10.53
12.4
8.12
0
2
4
6
8
10
12
14
2017-18 2018-19 2019-20
RETURN ON ASSETS
2019-20
2018-19
2017-18
YEAR
RATIOS
Year – 2018 10.53
Year – 2019 12.40
Year - 2020 8.12
Page No. 43
ETURN ON EQUITY
Return on equity = Net profitx 100
Shareholders fund
INTERPRETATION:
In this the return on equity first increased from 19.74 to 21.34 in the year 2018- 2019. So, the higher
ratio 21.34 in the year 2018 - 2019 isc recorded.
19.74
21.34
15.05
0
5
10
15
20
25
2017-18 2018-19 2019-20
RETURN ON EQUITY
2019-20
2018-19
2017-18
YEAR
RATIOS
Year – 2018 19.74
Year – 2019 21.34
Year - 2020 15.05
ETURN ON EQUITY
Return on equity = Net profitx 100
Shareholders fund
INTERPRETATION:
In this the return on equity first increased from 19.74 to 21.34 in the year 2018- 2019. So, the higher
ratio 21.34 in the year 2018 - 2019 isc recorded.
19.74
21.34
15.05
0
5
10
15
20
25
2017-18 2018-19 2019-20
RETURN ON EQUITY
2019-20
2018-19
2017-18
YEAR
RATIOS
Year – 2018 19.74
Year – 2019 21.34
Year - 2020 15.05
Page No. 44
FIXED ASSET TURNOVER RATIO
Fixed asset turnover ratio = Net sales
Fixed asset
INTERPRETATION:
The ratio measures the efficiency of the assets use. The high ratio is better performance. On the other
hand, a low ratio indicates that fixed assets are not being effectively utilized. Only in the years 2017-
2018 and 2018-2019 fixed assets were utilized effectively.
146
126.58
90.41
0
20
40
60
80
100
120
140
160
2017-18 2018-19 2019-20
FIXED ASSET TURNOVER RATIO
2019-20
2018-19
2017-18
YEAR RATIOS
Year – 2018 146.00
Year – 2019 126.58
Year - 2020 90.41
FIXED ASSET TURNOVER RATIO
Fixed asset turnover ratio = Net sales
Fixed asset
INTERPRETATION:
The ratio measures the efficiency of the assets use. The high ratio is better performance. On the other
hand, a low ratio indicates that fixed assets are not being effectively utilized. Only in the years 2017-
2018 and 2018-2019 fixed assets were utilized effectively.
146
126.58
90.41
0
20
40
60
80
100
120
140
160
2017-18 2018-19 2019-20
FIXED ASSET TURNOVER RATIO
2019-20
2018-19
2017-18
YEAR RATIOS
Year – 2018 146.00
Year – 2019 126.58
Year - 2020 90.41
Page No. 45
CAPITAL TURNOVER RATIO
Capital turnover ratio = Sales
Capital
INTERPRETATION:
The high capital turnover ratio it indicates greater profit on the other hand when it is low it indicates
sufficient sales are not being made and profits and lower. The actual capital turnover ratio has
increased in year 2018-2019 as 18.24 and then decreased in 2019-2020. Therefore, the capital
turnover ratio is not satisfactory.
16
18.24
11.5
0
2
4
6
8
10
12
14
16
18
20
2017-18 2018-19 2019-20
CAPITAL TURNOVER RATIO
2019-20
2018-19
2017-18
YEAR RATIOS
Year – 2018 16.00
Year – 2019 18.24
Year - 2020 11.50
CAPITAL TURNOVER RATIO
Capital turnover ratio = Sales
Capital
INTERPRETATION:
The high capital turnover ratio it indicates greater profit on the other hand when it is low it indicates
sufficient sales are not being made and profits and lower. The actual capital turnover ratio has
increased in year 2018-2019 as 18.24 and then decreased in 2019-2020. Therefore, the capital
turnover ratio is not satisfactory.
16
18.24
11.5
0
2
4
6
8
10
12
14
16
18
20
2017-18 2018-19 2019-20
CAPITAL TURNOVER RATIO
2019-20
2018-19
2017-18
YEAR RATIOS
Year – 2018 16.00
Year – 2019 18.24
Year - 2020 11.50
Page No. 46
CURRENT ASSET TO WORKING CAPITAL RATIO
Current asset to working capital ratio = current asset
Working capital
INTERPRETATION:
The year 2017-2018 got the higher current asset to working capital ratio as 3.22 on the other hand
lower ratio was observed in the year 2019-2020 of 1.99. Therefore, only in the year 2014-2015 the
higher ratio is recorded and used effectively.
3.22
2.47
1.99
0
0.5
1
1.5
2
2.5
3
3.5
2017-18 2018-19 2019-20
CURRENT ASSET TO WORKING CAPITAL RATIO
2019-20
2018-19
2017-18
YEAR
RATIOS
Year – 2018 3.22
Year – 2019 2.47
Year - 2020 1.99
CURRENT ASSET TO WORKING CAPITAL RATIO
Current asset to working capital ratio = current asset
Working capital
INTERPRETATION:
The year 2017-2018 got the higher current asset to working capital ratio as 3.22 on the other hand
lower ratio was observed in the year 2019-2020 of 1.99. Therefore, only in the year 2014-2015 the
higher ratio is recorded and used effectively.
3.22
2.47
1.99
0
0.5
1
1.5
2
2.5
3
3.5
2017-18 2018-19 2019-20
CURRENT ASSET TO WORKING CAPITAL RATIO
2019-20
2018-19
2017-18
YEAR
RATIOS
Year – 2018 3.22
Year – 2019 2.47
Year - 2020 1.99
Page No. 47
CHAPTER - 4
Findings
Suggestions & Recommendation
Conclusion
CHAPTER - 4
Findings
Suggestions & Recommendation
Conclusion
Page No. 48
FINDINGS
• From the analysis of Debt-Equity ratio, it is found that the company is using low debt,
the company is focusing on shareholders not creditors.
• From the analysis of Current ratio, it is found that the company has good liquidity
position it can able to meet its current liabilities.
• From the analysis of Quick ratio, it is found that the company has meet ideal ratio in the
year 2012 and 2013. It decreased in the year 2014.
• From the analysis of cash coverage ratio, it is found that the company has low ratio in
the year 2010 then increased till 2013, finally in the year 2014 it decreased.
• From the analysis of debt service ratio, it is found that the company interest payment is
decreasing till 2013 from 2010, then in the year 2014 it increased a little bit
• From the analysis of fixed asset turnover ratio, it is found that the company had
utilizing the asset efficiently in all the years. It has reached the ideal ratio in all the
years.
• From the analysis of sales to working capital ratio, it is found that the company has
utilized its working capital usefully for sales in the year 2011, but it is reduced in the
year 2012 and 2013, and increased in the year 2014.
FINDINGS
• From the analysis of Debt-Equity ratio, it is found that the company is using low debt,
the company is focusing on shareholders not creditors.
• From the analysis of Current ratio, it is found that the company has good liquidity
position it can able to meet its current liabilities.
• From the analysis of Quick ratio, it is found that the company has meet ideal ratio in the
year 2012 and 2013. It decreased in the year 2014.
• From the analysis of cash coverage ratio, it is found that the company has low ratio in
the year 2010 then increased till 2013, finally in the year 2014 it decreased.
• From the analysis of debt service ratio, it is found that the company interest payment is
decreasing till 2013 from 2010, then in the year 2014 it increased a little bit
• From the analysis of fixed asset turnover ratio, it is found that the company had
utilizing the asset efficiently in all the years. It has reached the ideal ratio in all the
years.
• From the analysis of sales to working capital ratio, it is found that the company has
utilized its working capital usefully for sales in the year 2011, but it is reduced in the
year 2012 and 2013, and increased in the year 2014.
Page No. 49
SUGGESTIONS & RECOMMENDATION
Following are the suggestions and recommendation based of the interpretation:-
• New and advanced concept must be introduced in inventory control management.
• Adequate planning is required for procurement of store items.
• A detail of the essence of effective working financial management is proper cash flow
forecasting. This should take into account the impact of unforeseen events, market
cycles, loss of a prime customer and actions by competitors. So the effect of
unforeseen demands of financial capital should be factored in Nestle India Co. Ltd.
• Advance payments should be avoided. If at all advance payments are required, it
should be against securities like banks guarantee etc.
• The company has to go for more debt component, because the company is using low
debt component and moreover it can develop further business activities with the help
of more funds.
• The company has to control over expenses, because the expenses is keep on
increasing in all the years, and it results in decreasing in profit available for
shareholders.
• The company has to maintain adequate cash level to meet out its immediate
requirement, because the company maintains less cash availability
• The company inventories is keep on increasing from the beginning of the year, so it
has to take necessary steps like sales promotion, advertising to clear the stocks
because it affects the liquidity position.
• The company has to properly utilize the assets efficiently to generate more profits,
because from the year 2010 till 2014, the company’s assets efficiency in generating
profit is decreasing, slowly.
SUGGESTIONS & RECOMMENDATION
Following are the suggestions and recommendation based of the interpretation:-
• New and advanced concept must be introduced in inventory control management.
• Adequate planning is required for procurement of store items.
• A detail of the essence of effective working financial management is proper cash flow
forecasting. This should take into account the impact of unforeseen events, market
cycles, loss of a prime customer and actions by competitors. So the effect of
unforeseen demands of financial capital should be factored in Nestle India Co. Ltd.
• Advance payments should be avoided. If at all advance payments are required, it
should be against securities like banks guarantee etc.
• The company has to go for more debt component, because the company is using low
debt component and moreover it can develop further business activities with the help
of more funds.
• The company has to control over expenses, because the expenses is keep on
increasing in all the years, and it results in decreasing in profit available for
shareholders.
• The company has to maintain adequate cash level to meet out its immediate
requirement, because the company maintains less cash availability
• The company inventories is keep on increasing from the beginning of the year, so it
has to take necessary steps like sales promotion, advertising to clear the stocks
because it affects the liquidity position.
• The company has to properly utilize the assets efficiently to generate more profits,
because from the year 2010 till 2014, the company’s assets efficiency in generating
profit is decreasing, slowly.
Page No. 50
CONCLUSION
• The company’s liquidity position is satisfactory but not ideal, as the current assets and
the current liabilities have being considerably decreased when compared to previous
year in order to meet its current obligations.
• The overall financial position of the Reliance Jio Infocomm Limited (RJIL) is
satisfactory. The company needs to improve its profitable position which is ideal, but
less when compared to other years, in order to earn return on the resources committed
to business.
• The activity ratio of the company is i.e current asset turnover ratio needs to be
improved. In the rest of the ratios gives satisfactory result.
• On the whole, the company’s overall position is satisfactory, and has the name, fame
and trust of people. It is listed in one among top 25 of India & has potential to survive.
• Increased demand of products helps the company remain strong. The changing
lifestyle and concepts of Indians have contributing much to the growth of the
company.
CONCLUSION
• The company’s liquidity position is satisfactory but not ideal, as the current assets and
the current liabilities have being considerably decreased when compared to previous
year in order to meet its current obligations.
• The overall financial position of the Reliance Jio Infocomm Limited (RJIL) is
satisfactory. The company needs to improve its profitable position which is ideal, but
less when compared to other years, in order to earn return on the resources committed
to business.
• The activity ratio of the company is i.e current asset turnover ratio needs to be
improved. In the rest of the ratios gives satisfactory result.
• On the whole, the company’s overall position is satisfactory, and has the name, fame
and trust of people. It is listed in one among top 25 of India & has potential to survive.
• Increased demand of products helps the company remain strong. The changing
lifestyle and concepts of Indians have contributing much to the growth of the
company.
Page No. 51
BIBILIOGRAPHY
BOOK’S
o I. M. Pandey - Financial Management - Vikas Publishing House Pvt. Ltd. -
Ninth Edition 2006
o M.Y. Khan and P.K. Jain, Financial management – Vikas Publishing house ltd.,
New Delhi.
o S.K. Gupta and R.K. Sharma, Financial Management – Kalyani Publishers
o Kothari C.R., “Research Methodology-methods and Techniques”, K.K Gupta
for New Age International private ltd, 2006.
Websites:
→ http://www.managementstudyguide.com/financial-management.htm
→ http://www.investopedia.com/terms/f/financial-analysis.asp
→ http://www.businessdictionary.com/definition/financial-analysis.html
→ http://www.myaccountingcourse.com/financial-ratios/
Company Websites
→ http://www.jio.com/
→ http://www.ril.com/OurCompany/About.aspx
BIBILIOGRAPHY
BOOK’S
o I. M. Pandey - Financial Management - Vikas Publishing House Pvt. Ltd. -
Ninth Edition 2006
o M.Y. Khan and P.K. Jain, Financial management – Vikas Publishing house ltd.,
New Delhi.
o S.K. Gupta and R.K. Sharma, Financial Management – Kalyani Publishers
o Kothari C.R., “Research Methodology-methods and Techniques”, K.K Gupta
for New Age International private ltd, 2006.
Websites:
→ http://www.managementstudyguide.com/financial-management.htm
→ http://www.investopedia.com/terms/f/financial-analysis.asp
→ http://www.businessdictionary.com/definition/financial-analysis.html
→ http://www.myaccountingcourse.com/financial-ratios/
Company Websites
→ http://www.jio.com/
→ http://www.ril.com/OurCompany/About.aspx
Page No. 52
ANNEXURE
Reliance Jio Infocomm Limited (RJIL)
Balance Sheet of Reliance Jio Infocomm Limited (RJIL)----------- in Rs. Cr. ------------
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 50.90 50.90 50.91 50.41 50.41
Total Share Capital 50.90 50.90 50.91 50.41 50.41
Revaluation Reserves 0.00 3.12 3.12 3.12 3.12
Reserves and Surplus 5,280.29 3,942.38 3,216.65 2,675.51 2,277.12
Total Reserves and Surplus 5,280.29 3,945.50 3,219.78 2,678.63 2,280.24
Money Received Against Share
Warrants
0.00 0.00 0.00 10.78 10.78
Total Shareholders’ Funds 5,331.19 3,996.41 3,270.69 2,739.82 2,341.42
NON-CURRENT LIABILITIES
Long Term Borrowings 834.03 212.59 333.94 713.73 1,338.37
Deferred Tax Liabilities [Net] 515.31 449.62 412.24 390.95 351.84
Other Long Term Liabilities 293.19 7.67 6.91 6.21 12.41
Long Term Provisions 5.73 6.96 7.84 6.76 0.00
Total Non-Current Liabilities 1,648.25 676.83 760.94 1,117.65 1,702.62
CURRENT LIABILITIES
Short Term Borrowings 784.00 373.72 462.66 180.67 539.42
Trade Payables 1,040.75 908.03 662.18 898.34 600.10
Other Current Liabilities 616.84 382.94 561.69 890.74 462.56
Short Term Provisions 459.34 536.05 403.25 284.78 191.09
ANNEXURE
Reliance Jio Infocomm Limited (RJIL)
Balance Sheet of Reliance Jio Infocomm Limited (RJIL)----------- in Rs. Cr. ------------
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 50.90 50.90 50.91 50.41 50.41
Total Share Capital 50.90 50.90 50.91 50.41 50.41
Revaluation Reserves 0.00 3.12 3.12 3.12 3.12
Reserves and Surplus 5,280.29 3,942.38 3,216.65 2,675.51 2,277.12
Total Reserves and Surplus 5,280.29 3,945.50 3,219.78 2,678.63 2,280.24
Money Received Against Share
Warrants
0.00 0.00 0.00 10.78 10.78
Total Shareholders’ Funds 5,331.19 3,996.41 3,270.69 2,739.82 2,341.42
NON-CURRENT LIABILITIES
Long Term Borrowings 834.03 212.59 333.94 713.73 1,338.37
Deferred Tax Liabilities [Net] 515.31 449.62 412.24 390.95 351.84
Other Long Term Liabilities 293.19 7.67 6.91 6.21 12.41
Long Term Provisions 5.73 6.96 7.84 6.76 0.00
Total Non-Current Liabilities 1,648.25 676.83 760.94 1,117.65 1,702.62
CURRENT LIABILITIES
Short Term Borrowings 784.00 373.72 462.66 180.67 539.42
Trade Payables 1,040.75 908.03 662.18 898.34 600.10
Other Current Liabilities 616.84 382.94 561.69 890.74 462.56
Short Term Provisions 459.34 536.05 403.25 284.78 191.09
Page No. 53
Total Current Liabilities 2,900.93 2,200.74 2,089.78 2,254.53 1,793.17
Total Capital And Liabilities 9,880.37 6,873.98 6,121.41 6,112.00 5,837.21
ASSETS
NON-CURRENT ASSETS
Tangible Assets 4,770.95 3,088.38 3,096.53 3,242.16 3,063.39
Intangible Assets 24.22 12.93 10.52 11.42 7.96
Capital Work-In-Progress 621.48 386.87 129.65 34.97 248.97
Fixed Assets 5,416.64 3,488.18 3,236.69 3,288.55 3,320.33
Non-Current Investments 1,004.86 672.11 651.92 651.46 612.70
Long Term Loans And Advances 84.12 363.30 178.03 123.04 168.99
Other Non-Current Assets 194.46 0.00 36.02 21.41 0.00
Total Non-Current Assets 6,700.09 4,523.59 4,102.66 4,084.47 4,102.02
CURRENT ASSETS
Current Investments 394.44 121.64 100.00 0.00 0.00
Inventories 1,729.40 1,022.90 1,185.19 1,283.69 1,120.83
Trade Receivables 386.49 292.76 320.01 240.55 273.14
Cash And Cash Equivalents 139.38 289.38 207.84 221.11 154.19
Short Term Loans And Advances 201.05 562.52 168.12 244.58 186.97
OtherCurrentAssets 329.52 61.20 37.60 37.61 0.07
Total Current Assets 3,180.29 2,350.39 2,018.75 2,027.53 1,735.19
Total Assets 9,880.37 6,873.98 6,121.41 6,112.00 5,837.21
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 501.38 563.18 151.52 253.25 748.98
CIF VALUE OF IMPORTS
Total Current Liabilities 2,900.93 2,200.74 2,089.78 2,254.53 1,793.17
Total Capital And Liabilities 9,880.37 6,873.98 6,121.41 6,112.00 5,837.21
ASSETS
NON-CURRENT ASSETS
Tangible Assets 4,770.95 3,088.38 3,096.53 3,242.16 3,063.39
Intangible Assets 24.22 12.93 10.52 11.42 7.96
Capital Work-In-Progress 621.48 386.87 129.65 34.97 248.97
Fixed Assets 5,416.64 3,488.18 3,236.69 3,288.55 3,320.33
Non-Current Investments 1,004.86 672.11 651.92 651.46 612.70
Long Term Loans And Advances 84.12 363.30 178.03 123.04 168.99
Other Non-Current Assets 194.46 0.00 36.02 21.41 0.00
Total Non-Current Assets 6,700.09 4,523.59 4,102.66 4,084.47 4,102.02
CURRENT ASSETS
Current Investments 394.44 121.64 100.00 0.00 0.00
Inventories 1,729.40 1,022.90 1,185.19 1,283.69 1,120.83
Trade Receivables 386.49 292.76 320.01 240.55 273.14
Cash And Cash Equivalents 139.38 289.38 207.84 221.11 154.19
Short Term Loans And Advances 201.05 562.52 168.12 244.58 186.97
OtherCurrentAssets 329.52 61.20 37.60 37.61 0.07
Total Current Assets 3,180.29 2,350.39 2,018.75 2,027.53 1,735.19
Total Assets 9,880.37 6,873.98 6,121.41 6,112.00 5,837.21
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 501.38 563.18 151.52 253.25 748.98
CIF VALUE OF IMPORTS
Page No. 54
Raw Materials 2,324.59 1,964.81 2,409.81 2,549.22 2,622.21
Stores, Spares And Loose Tools 5.64 6.22 6.45 6.51 6.55
Capital Goods 1,051.84 173.77 44.79 50.37 162.34
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure In Foreign Currency 317.89 269.07 190.62 195.32 116.54
REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign
Currency
- - - - -
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods 806.96 739.29 922.23 814.23 809.17
Other Earnings 26.92 48.36 33.78 11.55 10.61
BONUS DETAILS
Bonus Equity Share Capital - - - - -
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted
Market Value
- 0.11 0.12 0.06 0.06
Non-Current Investments
Unquoted Book Value
1,004.04 672.08 651.88 651.43 612.66
CURRENT INVESTMENTS
Current Investments Quoted
Market Value
- - - - -
Current Investments Unquoted
Book Value
394.44 121.64 100.00 - -
Raw Materials 2,324.59 1,964.81 2,409.81 2,549.22 2,622.21
Stores, Spares And Loose Tools 5.64 6.22 6.45 6.51 6.55
Capital Goods 1,051.84 173.77 44.79 50.37 162.34
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure In Foreign Currency 317.89 269.07 190.62 195.32 116.54
REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign
Currency
- - - - -
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods 806.96 739.29 922.23 814.23 809.17
Other Earnings 26.92 48.36 33.78 11.55 10.61
BONUS DETAILS
Bonus Equity Share Capital - - - - -
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted
Market Value
- 0.11 0.12 0.06 0.06
Non-Current Investments
Unquoted Book Value
1,004.04 672.08 651.88 651.43 612.66
CURRENT INVESTMENTS
Current Investments Quoted
Market Value
- - - - -
Current Investments Unquoted
Book Value
394.44 121.64 100.00 - -
Page No. 55
Profit & Loss account of Reliance Jio Infocomm Limited (RJIL)----------------- in Rs. Cr. ------------
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
Revenue From Operations [Gross] 9,806.62 9,619.39 9,877.27 9,589.28 9,452.91
Less: Excise/Sevice Tax/Other
Levies
989.92 1,002.97 999.00 979.20 945.41
Revenue From Operations [Net] 8,816.70 8,616.41 8,878.27 8,610.08 8,507.49
Other Operating Revenues 117.07 85.23 59.55 101.65 0.00
Total Operating Revenues 8,933.77 8,701.64 8,937.82 8,711.73 8,507.49
Other Income 135.33 53.64 37.55 79.23 57.38
Total Revenue 9,069.10 8,755.29 8,975.36 8,790.96 8,564.87
EXPENSES
Cost Of Materials Consumed 5,313.23 4,641.13 5,400.71 5,724.31 5,867.36
Purchase Of Stock-In Trade 220.96 224.40 249.22 250.28 253.90
Changes In Inventories Of FG,WIP
And Stock-In Trade
-318.15 126.62 19.73 -115.87 -7.37
Employee Benefit Expenses 590.73 566.49 545.13 486.67 426.85
Finance Costs 88.78 88.33 172.09 244.61 260.97
Depreciation And Amortisation
Expenses
288.20 268.61 246.78 248.05 220.07
Other Expenses 1,799.73 1,582.25 1,407.56 1,267.43 1,068.57
Total Expenses 7,983.47 7,497.84 8,041.22 8,105.47 8,090.35
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
12 mths 12 mths 12 mths 12 mths 12 mths
Profit/Loss Before Exceptional,
ExtraOrdinary Items And Tax
1,085.63 1,257.45 934.14 685.49 474.52
Exceptional Items 0.00 0.00 0.00 -71.05 0.00
Profit & Loss account of Reliance Jio Infocomm Limited (RJIL)----------------- in Rs. Cr. ------------
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
Revenue From Operations [Gross] 9,806.62 9,619.39 9,877.27 9,589.28 9,452.91
Less: Excise/Sevice Tax/Other
Levies
989.92 1,002.97 999.00 979.20 945.41
Revenue From Operations [Net] 8,816.70 8,616.41 8,878.27 8,610.08 8,507.49
Other Operating Revenues 117.07 85.23 59.55 101.65 0.00
Total Operating Revenues 8,933.77 8,701.64 8,937.82 8,711.73 8,507.49
Other Income 135.33 53.64 37.55 79.23 57.38
Total Revenue 9,069.10 8,755.29 8,975.36 8,790.96 8,564.87
EXPENSES
Cost Of Materials Consumed 5,313.23 4,641.13 5,400.71 5,724.31 5,867.36
Purchase Of Stock-In Trade 220.96 224.40 249.22 250.28 253.90
Changes In Inventories Of FG,WIP
And Stock-In Trade
-318.15 126.62 19.73 -115.87 -7.37
Employee Benefit Expenses 590.73 566.49 545.13 486.67 426.85
Finance Costs 88.78 88.33 172.09 244.61 260.97
Depreciation And Amortisation
Expenses
288.20 268.61 246.78 248.05 220.07
Other Expenses 1,799.73 1,582.25 1,407.56 1,267.43 1,068.57
Total Expenses 7,983.47 7,497.84 8,041.22 8,105.47 8,090.35
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
12 mths 12 mths 12 mths 12 mths 12 mths
Profit/Loss Before Exceptional,
ExtraOrdinary Items And Tax
1,085.63 1,257.45 934.14 685.49 474.52
Exceptional Items 0.00 0.00 0.00 -71.05 0.00
Page No. 56
Profit/Loss Before Tax 1,085.63 1,257.45 934.14 614.45 474.52
Tax Expenses-Continued Operations
Current Tax 231.03 365.38 254.47 132.72 106.01
Less: MAT Credit Entitlement 22.57 0.00 0.00 0.00 0.00
Deferred Tax 74.42 39.61 34.59 39.11 55.98
Total Tax Expenses 282.88 404.99 289.06 171.83 161.99
Profit/Loss After Tax And Before
Extra Ordinary Items
802.76 852.46 645.08 442.62 312.53
Profit/Loss From Continuing
Operations
802.76 852.46 645.08 442.62 312.53
Profit/Loss For The Period 802.76 852.46 645.08 442.62 312.53
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
12 mths 12 mths 12 mths 12 mths 12 mths
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 15.77 16.75 12.70 8.78 6.20
Diluted EPS (Rs.) 15.77 16.75 12.69 8.77 6.20
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
Imported Raw Materials 2,157.20 1,976.05 2,483.83 2,533.27 2,624.38
Indigenous Raw Materials 3,156.03 2,665.08 2,946.40 3,213.35 3,271.33
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 5.51 5.32 5.86 3.96 4.40
Indigenous Stores And Spares 70.88 59.36 54.73 49.93 48.85
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 101.81 101.81 101.81 37.80 25.20
Tax On Dividend 20.73 20.73 20.73 6.42 4.28
Profit/Loss Before Tax 1,085.63 1,257.45 934.14 614.45 474.52
Tax Expenses-Continued Operations
Current Tax 231.03 365.38 254.47 132.72 106.01
Less: MAT Credit Entitlement 22.57 0.00 0.00 0.00 0.00
Deferred Tax 74.42 39.61 34.59 39.11 55.98
Total Tax Expenses 282.88 404.99 289.06 171.83 161.99
Profit/Loss After Tax And Before
Extra Ordinary Items
802.76 852.46 645.08 442.62 312.53
Profit/Loss From Continuing
Operations
802.76 852.46 645.08 442.62 312.53
Profit/Loss For The Period 802.76 852.46 645.08 442.62 312.53
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
12 mths 12 mths 12 mths 12 mths 12 mths
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 15.77 16.75 12.70 8.78 6.20
Diluted EPS (Rs.) 15.77 16.75 12.69 8.77 6.20
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
Imported Raw Materials 2,157.20 1,976.05 2,483.83 2,533.27 2,624.38
Indigenous Raw Materials 3,156.03 2,665.08 2,946.40 3,213.35 3,271.33
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 5.51 5.32 5.86 3.96 4.40
Indigenous Stores And Spares 70.88 59.36 54.73 49.93 48.85
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 101.81 101.81 101.81 37.80 25.20
Tax On Dividend 20.73 20.73 20.73 6.42 4.28
Page No. 57
Equity Dividend Rate (%) 300.00 200.00 200.00 75.00 50.00
Equity Dividend Rate (%) 300.00 200.00 200.00 75.00 50.00
Page No. 58
Key Financial Ratios of Reliance Jio Infocomm Limited (RJIL)------------ in Rs. Cr. -------
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
Per Share Ratios
Basic EPS (Rs.) 15.77 16.75 12.70 8.78 6.20
Diluted EPS (Rs.) 15.77 16.75 12.69 8.77 6.20
Cash EPS (Rs.) 21.43 22.02 17.52 13.70 10.57
Book Value
[ExclRevalReserve]/Share (Rs.)
104.73 78.45 64.18 54.29 46.39
Book Value
[InclRevalReserve]/Share (Rs.)
104.73 78.51 64.25 54.35 46.45
Dividend / Share(Rs.) 3.00 2.00 2.00 0.75 0.50
Revenue from Operations/Share
(Rs.)
175.51 170.95 175.56 172.82 168.77
PBDIT/Share (Rs.) 28.73 31.72 26.58 23.37 18.96
PBIT/Share (Rs.) 23.07 26.44 21.73 18.45 14.59
PBT/Share (Rs.) 21.33 24.70 18.35 12.19 9.41
Net Profit/Share (Rs.) 15.77 16.75 12.67 8.78 6.20
Profitability Ratios
PBDIT Margin (%) 16.37 18.55 15.13 13.52 11.23
PBIT Margin (%) 13.14 15.46 12.37 10.67 8.64
PBT Margin (%) 12.15 14.45 10.45 7.05 5.57
Net Profit Margin (%) 8.98 9.79 7.21 5.08 3.67
Return on Networth / Equity (%) 15.05 21.34 19.74 16.17 13.36
Return on Capital Employed (%) 11.50 18.24 16.00 11.47 7.72
Return on Assets (%) 8.12 12.40 10.53 7.24 5.35
Total Debt/Equity (X) 0.30 0.15 0.24 0.33 0.80
Asset Turnover Ratio (%) 90.41 126.58 146.00 142.53 145.74
Liquidity Ratios
Key Financial Ratios of Reliance Jio Infocomm Limited (RJIL)------------ in Rs. Cr. -------
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16
Per Share Ratios
Basic EPS (Rs.) 15.77 16.75 12.70 8.78 6.20
Diluted EPS (Rs.) 15.77 16.75 12.69 8.77 6.20
Cash EPS (Rs.) 21.43 22.02 17.52 13.70 10.57
Book Value
[ExclRevalReserve]/Share (Rs.)
104.73 78.45 64.18 54.29 46.39
Book Value
[InclRevalReserve]/Share (Rs.)
104.73 78.51 64.25 54.35 46.45
Dividend / Share(Rs.) 3.00 2.00 2.00 0.75 0.50
Revenue from Operations/Share
(Rs.)
175.51 170.95 175.56 172.82 168.77
PBDIT/Share (Rs.) 28.73 31.72 26.58 23.37 18.96
PBIT/Share (Rs.) 23.07 26.44 21.73 18.45 14.59
PBT/Share (Rs.) 21.33 24.70 18.35 12.19 9.41
Net Profit/Share (Rs.) 15.77 16.75 12.67 8.78 6.20
Profitability Ratios
PBDIT Margin (%) 16.37 18.55 15.13 13.52 11.23
PBIT Margin (%) 13.14 15.46 12.37 10.67 8.64
PBT Margin (%) 12.15 14.45 10.45 7.05 5.57
Net Profit Margin (%) 8.98 9.79 7.21 5.08 3.67
Return on Networth / Equity (%) 15.05 21.34 19.74 16.17 13.36
Return on Capital Employed (%) 11.50 18.24 16.00 11.47 7.72
Return on Assets (%) 8.12 12.40 10.53 7.24 5.35
Total Debt/Equity (X) 0.30 0.15 0.24 0.33 0.80
Asset Turnover Ratio (%) 90.41 126.58 146.00 142.53 145.74
Liquidity Ratios
Page No. 59
Current Ratio (X) 1.10 1.07 0.97 0.90 0.97
Quick Ratio (X) 0.50 0.60 0.40 0.33 0.34
Inventory Turnover Ratio (X) 5.17 8.51 7.54 6.79 7.59
Dividend Payout Ratio (NP) (%) 12.68 11.94 15.78 8.54 8.06
Dividend Payout Ratio (CP) (%) 9.33 9.08 11.41 5.47 4.73
Earnings Retention Ratio (%) 87.32 88.06 84.22 91.46 91.94
Cash Earnings Retention Ratio (%) 90.67 90.92 88.59 94.53 95.27
Valuation Ratios
Enterprise Value (Cr.) 12,099.35 9,204.77 9,154.20 8,703.45 5,927.70
EV/Net Operating Revenue (X) 1.35 1.06 1.02 1.00 0.70
EV/EBITDA (X) 8.27 5.70 6.77 7.39 6.20
MarketCap/Net Operating Revenue
(X)
1.19 1.02 0.96 0.92 0.49
Retention Ratios (%) 87.31 88.05 84.21 91.45 91.93
Price/BV (X) 1.99 2.23 2.62 2.93 1.80
Price/Net Operating Revenue 1.19 1.02 0.96 0.92 0.49
Earnings Yield 0.08 0.10 0.08 0.06 0.07
Current Ratio (X) 1.10 1.07 0.97 0.90 0.97
Quick Ratio (X) 0.50 0.60 0.40 0.33 0.34
Inventory Turnover Ratio (X) 5.17 8.51 7.54 6.79 7.59
Dividend Payout Ratio (NP) (%) 12.68 11.94 15.78 8.54 8.06
Dividend Payout Ratio (CP) (%) 9.33 9.08 11.41 5.47 4.73
Earnings Retention Ratio (%) 87.32 88.06 84.22 91.46 91.94
Cash Earnings Retention Ratio (%) 90.67 90.92 88.59 94.53 95.27
Valuation Ratios
Enterprise Value (Cr.) 12,099.35 9,204.77 9,154.20 8,703.45 5,927.70
EV/Net Operating Revenue (X) 1.35 1.06 1.02 1.00 0.70
EV/EBITDA (X) 8.27 5.70 6.77 7.39 6.20
MarketCap/Net Operating Revenue
(X)
1.19 1.02 0.96 0.92 0.49
Retention Ratios (%) 87.31 88.05 84.21 91.45 91.93
Price/BV (X) 1.99 2.23 2.62 2.93 1.80
Price/Net Operating Revenue 1.19 1.02 0.96 0.92 0.49
Earnings Yield 0.08 0.10 0.08 0.06 0.07
Page No. 60
QUESTIONNAIRE
NAME……………………………………………
ADDRESS………………………………………..
Occupation / Job……………………………………
1. Age
• 18-28
• 29-39
• 40-50
• 50- Above
2. Education
• SSC
• HSC
• Graduation
• Diploma
• Post-Graduation
3. Salary
• No Income
• Below-Rs.10000
• Rs. 10000-Rs.5000
• Rs.25001-Rs.40000
• Above-Rs.40001
4. What is your opinion about Reliance Jio?
• Excellent
• Very Good
• Good
• Bad
QUESTIONNAIRE
NAME……………………………………………
ADDRESS………………………………………..
Occupation / Job……………………………………
1. Age
• 18-28
• 29-39
• 40-50
• 50- Above
2. Education
• SSC
• HSC
• Graduation
• Diploma
• Post-Graduation
3. Salary
• No Income
• Below-Rs.10000
• Rs. 10000-Rs.5000
• Rs.25001-Rs.40000
• Above-Rs.40001
4. What is your opinion about Reliance Jio?
• Excellent
• Very Good
• Good
• Bad
Page No. 61
5. Which factor motivates you to purchase Jio?
• Friends
• Brand Image
• Advertisement
• Relatives
• Self-decision
6. To What extent the “Reliance Jio” has satisfied your purpose /Need?
• Fully Satisfied
• Satisfied
• Dissatisfied
• Fully dissatisfied
7. Why did you prefer Reliance Jio?
• Quality
• Price
• Service
• Brand Image
8. What is your opinion about service plans of the company?
• Very reasonable
• Reasonable
• Costly
• Very costly
5. Which factor motivates you to purchase Jio?
• Friends
• Brand Image
• Advertisement
• Relatives
• Self-decision
6. To What extent the “Reliance Jio” has satisfied your purpose /Need?
• Fully Satisfied
• Satisfied
• Dissatisfied
• Fully dissatisfied
7. Why did you prefer Reliance Jio?
• Quality
• Price
• Service
• Brand Image
8. What is your opinion about service plans of the company?
• Very reasonable
• Reasonable
• Costly
• Very costly
Page No. 62
9. What problems faced in the customer service of Reliance Jio?
• Lack of information
• None cooperation
• Delay
• No Problem
10. Give your valuable suggestion to improve Reliance Jio?
a. ………………………………………………………………………………
b. ………………………………………………………………………………
c. ……………………………………………………… .………………………
9. What problems faced in the customer service of Reliance Jio?
• Lack of information
• None cooperation
• Delay
• No Problem
10. Give your valuable suggestion to improve Reliance Jio?
a. ………………………………………………………………………………
b. ………………………………………………………………………………
c. ……………………………………………………… .………………………
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