INTRODUCTION of Reliance Energy Ltd.

Reliance Energy Ltd. - Energizing the Power Sector.

Reliance Energy Limited,incorporated in 1929,is a fully integrated utility engaged

in the generation,transmission and distribution of electricity.It ranks among India
's top listed private companies on all major financial parameters,including
assets,sales,profits and market capitalization.

A constituent of the Reliance -Anil Dhirubhai Ambani Group,Reliance Energy is

India 's foremost private sector utility with aggregate estimated revenues of Rs
9,500 crore (US$2.1 billion)and total assets of Rs 10,700 crore (US$2.4 billion).
Reliance Energy distributes more than 21 billion units of electricity to over 25
million consumers in Mumbai, Delhi, Orissa and Goa, across an area that spans
1,24,300 sq.kms. It generates 941 MW of electricity, through its power stations
located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.

Reliance Energy is currently pursuing several gas,coal,wind and hydro-based

power generation projects in Maharashtra,Uttar Pradesh,Arunachal Pradesh and
Uttaranchal with aggregate capacity of over 12,500 MW.These projects are at
various stages of development.

Reliance Energy is vigorously participating in emerging opportunities in the areas

of trading and transmission of power.It is also engaged in a portfolio of services in
the power sector in Engineering,Procurement and Construction (EPC)through a
network of regional offices in India.
The division is fully integrated and has in house capabilities to address every
aspect of power projects including:
• Mechanical
• Civil
• Electrical
• Instrumentation
• Environmental
 COMPARATIVE BALANCE SHEET

2009 2008 Absolute Percentage

Particulars Inc / dec

Net worth 272.45 251.15 21.3 8.48

Capital(WIP) 10 15.97 - 5.97 37.4

Investment 47.39 27.02 20.37 75.3

Net current
assets 388.93 293.55 95.38 32.49

Total assets 694.06 574.45 119.61 20.82

Share capital 44.39 44.39 Nil Nil

Reserve 391.78 283.55 108.73 38.4

Secured loan 188.11 172.67 15.44 8.94

Unsecured loan 69.78 74.34 -4.56 6.13

Total 694.06 574.45 119.61 20.82

liabilities
 COMMONSIZE BALANCE SHEET

Particulars 2008 2008 % of 2009 % of total

total

Net worth 251.15 43.72 272.45 39.25

Capital(WIP) 15.97 2.78 10 1.44

Investment 27.02 4.70 47.39 6.82

Net current
assets 293.55 51.10 388.93 56.03

Total assets 574.45 100 694.06 100

Share capital 44.39 7.72 44.39 7.72

Reserve 283.55 49.27 391.78 56.5

Secured loan 172.67 30 188.11 27.10

Unsecured loan 74.34 12.9 69.78 10.05

Total 574.45 100 694.06 100

liabilities
 TREND ANALYSIS

PARTICULARS 2009 2008 Trend% Trend %2009

2008

Net worth 272.45 251.15 100 108.5

Capital(WIP) 10 15.97 100 62.6

Investment 47.39 27.02 100 175.4

Net current assets

388.93 293.55 100 132.50

694.06 574.45 100 120.82

Total assets

44.39 44.39 100 100

Share capital

100
Reserve 391.78 283.55 138.41

100
Secured loan 188.11 172.67 108.94

100
Unsecured loan 69.78 74.34 93.86

100
Total liabilities 694.06 574.45 120.82
 ANALYSIS

PROFIT AND LOSS ACCOUNT

The sale of the company increases every year. In 2008 the sale is 2181.69
and increase to 3098.19. The incomes from other source also increase. The
company will spend a lot of money on row material. The amount of

Spend always increases. Expenditure on power and fuel is increases. The

company will spend a lot of money on the employee there is 29.1 increase in
the expenditure as compare to last year. The gross profit ratio increase every
year. It mean the company was spent a lot of money on sales with effect the
production also increases. There is no gross loss. And the company will also
save money for depreciation which is helpful for the purchase of new assets.
The net profit of the company will also increase in 2008. the net profit is
112.32 in 2009 its profit is 169.81 its shows the rapid increase in the profit.
The profit and loss shows that the company is at the good position. The
equity dividend increase it mean there is increase in the shareholder in the
company and the company will pay a dividend to shareholder. The company
not pays any dividend to preference shareholder in 2009.

COMPARATIVE BALANCE SHEET

• The comparative balance sheet of the reliance energy shows that the
share capital as compare to last year is not increase. This made no
improvement in financial position of the company.

• There is increase in the reserve. It means company would have save

more money for the future.
 • Secured loan as compare to last year has increase it indicate increase
dependence on borrowed fund which is not good sine.

• The unsecured loan is decrease it indicates that loans and current

liability have been paid by the company.

• The investment of the company as compare to last year increase it

shows that the company will spend a lot on investment.

• The current assets of the company increase it is a good sine for the
company.

COMMONSIZE BALANCE SHEET

• The above common size statement shows that the net block of reliance
energy is reduce from 43.72% to 39.25% of total assets it has
decrease against the previous.
• The reserve fund increase as compare to last year. It increases to 56.5.
• The secured loan decrease from 30% to 27.10%.

TREND ANALYSIS

• The trend analysis shows that the net block increase from the previous
year 2008 by 8.5%.

• The work in progress is reducing to 62.6% this is not a good sine for
the company.

• The share capital constant as compare to last year.

• The secured loan is increase 8.11 this shows company is depend on

borrowing.

• The unsecured loan is decrease to 93.86.