FINANCIAL STATEMENT ANALYSIS

INTRODUCTION
Chairman & M.D. : Mukesh D. Ambani Market Capital: Rs. 3,46,250 Cr Shareholder Return: 25% (CAGR since listing) Contribution: 10.4% of Indias total Export Largest refining capacity Largest producer of Polyester Fibre & Yarn Weightage: 13.6% in BSE & 11.1% in NSE FT Global 500: 264th in Sales & 117th in Profits

SOLVENCY RATIO
Ratio 2009 2008

Debt Equity ratio

(Debt/Equity)

0.66 : 1 1.53 : 1 0.78:1

0.45 : 1 1.78 : 1 0.75:1

Current ratio
(CA /CL) Stock Working Capital Ratio
(Cl.stock/W.C.)

PROFITABILITY RATIO
Ratio 2009 2008

Net Profit Ratio

(N.P./Sales) Operating Profit Ratio (Op.P./Sales)

10.5% 16.7% 12.5%

14% 17.5% 23.88%

RONW (N.P./NW)

ACTIVITY RATIO
Ratio 2009 2008

Stock Velocity Debtors Velocity Creditors Velocity

8 times 44 days 26 times 14 days 4.5 time 80 days

7.60 times 48 days 21.5 times 17 days 5.1 times 70 days

VALUATION RATIO
Ratio 2009 2008

EPS
(N.P./No. of Eq.shares)

97.25 Rs. 134 Rs.

DPS (F.V.*Div. Rate)

13 Rs.
13.35%

13 Rs.
9.7%

Dividend Payout
(DPS/EPS)

ACCOUNTING POLICIES & NOTES ON ACCOUNTS

GAAP & Companies Act, 1956 AS-1 (Disclosure of Accounting Policies) AS-2 (Valuation of Inventories) (Weighted avg.) AS-6 (Deprecation) (WDV & SLM) AS-13 (Accounting for Investments) As-14 (Accounting for Amalgamation) AS-15 (Employee benefits) AS-29 (Provision, Contingent liabs. & assets)

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