accounts term paper ppt

8/8/2019 Accounts Term Paper Ppt

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Reliance Intro

Indias largest private sector conglomerate

Annual turnover of US$ 44.6 bn

Profit of US$ 3.6 bn

Ranked at 264thposition in Fortune 500 ( as on 2009) and126thposition in Forbes Global 200 (as on 2010).

Founded by Dhirubhai Ambani in 1966

The entire group was divided between Anil and Mukesh in

2006. More than 3million shareholders ( 1 out of 4 investors in India

is a Reliance share holders)

For the fiscal year ending

in March 2010


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Businesses

Major Subsidiaries and associates

Reliance Petroleum

Reliance Life sciences

Reliance Industrial Infrastructure Limited

Reliance Institute of Life sciences

Reliance Logistics

Reliance Clinical Research Services

Reliance Solar

Relicord

Reliance Retail


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ACCOUNTING POLICY

Reliance Industries prepared its financial statements in

accordance with Indian Generally Accepted Accounting

Principles (GAAP).

y Use of Estimates

y Fixed Assets and Depreciation

y Investments

y Cash and Cash equivalents


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FIXEDASSETS(observations)

TANGIBLEASSETS INTANGIBLEASSETS Lease hold land

Free hold land

Buildings

Plant & Machinery

Electrical installations

Equipments

Furniture & Fixtures

Vehicles

Ships Aircraft & Helicopters

Technical Knowhow fees

Software

Others

Capital Work in Progress


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LIABILITIES(Observations)

Share capital

Reserves and Surplus

Secured Loans

Unsecured Loans

Deferred Tax Liability

Current Liabilities

Provisions


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DEPRECIATION

In reliance Industries Depreciation on fixed assets is

provided on Written Down Value method (WDV)

according to the Companies act 1956 over their usefullife.

For Fixed assets relating to SEZs Depreciation is

provided on Straight Line Method(SLM).

The depreciation amount is Rs 62,604.82 crores

y Due to increased depreciation in REFINING SEGMENT


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INVENTORIES

For Reliance this year is like a stabilizing year after an economic

meltdown, even it experienced shutdowns and permanent closures.

Cost of inventories comprises of

y Cost of purchasey Cost of conversion and

y Other costs incurred in bringing them to their respective present

location and condition

the turnover of inventory represents one of the primary resources

of revenue generation.

Inventories that are deducted in cash flow from operating activities

is Rs 12144.90 crores.


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DIVIDENDS

Paying dividends is not an expense; rather, it is the division of

an asset among shareholders.

The Company has transferred the unpaid or unclaimed dividends for the

financial years 1995-96 to 2001-02, to the Investor Education and

Protection Fund (the IEPF)(Under the companys act)

Reliance Industries Ltd has announced that the Board of Directors of the

Company has recommended a dividend of Rs. 7.00 (Rupees seven only)per fully paid-up equity share of Rs. 10/- each for second time in this year.


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RESERVESAND SURPLUS

The surplus drawn from profit and loss account has

decreased compared to last year and is Rs.4999.45 crores.

Total reserves of RIL as on 31st March 2010 is Rs

1,28,900.79 crores

y Revaluation Reserve

y Capital Reserve

y Capital Redemption Reservey Securities Premium Account

y Debentures Redemption Reserve

y General Reserve

y Profit and Loss account


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SECUREDAND UNSECURED LOANS

SECURED UNSECURED

Debentures

Term loans

Working Capital Loans

Long term

Short term

Deferred sales tax liability


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INCOME STATEMENT

There has been an increase in the profit in the year 2009 and

this increase is attributed to increase in the income from the

companys products and the services.

Income in the year 2009 was Rs. 144334 crores and income

in the year 2010 was Rs.198869 crores.

There is a considerable increase in manufacturing and other

expenses due to increase in the cost of electricity and power,

fuel and water, lease rents and exchange differences.


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BALANCE SHEET

Fixed assets as 31st march 2010 is 1,65,398.71cr and as

on 31st march 2009 is 1,69,386.89 cr.

There is an overall increase in both current assets and

current liabilities resulting in the increase in net current

assets ( Rs 19,010.37cr in 2009 to Rs 21,964.27cr in

2010).


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CASHFLOW

The net cash flows generated from operating activities is Rs.

20490.22 cr.

The net cash flows used in investing activities are Rs.18204.50 cr and the net cash flows used in financing

activities are Rs. 10999.60 cr.

The cash and cash equivalent at the end of the period is Rs

13462.65cr.


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REPORTS

Auditors:-The Auditors report states that, the audit is

in accordance with the auditing standards generally

accepted in India Directors:- The directors report of Reliance includes

information on Profit or Loss of its Subsidiaries, Capital

Expenditure and Dividend.

CorporateGovernance:- Information regarding

Directors and its Corporate governance policy


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accounts term paper ppt

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