KALINGA COLLEGE OF COMMERCE

SESSION – 2019 – 2020

PROJECT REPORT ON
ACCOUNTING
TITTLE - RELIANCE INDUSTRIES ISSUE SHARES

SUBMITTED BY
NAME:- NIRNALI CHHATOI
CLASS :- +2 2ND YEAR
COLLEGE ROLL NO. :-IC18-033
REGISTRATION NO. :-MZ07C18033
ADMIT CARD NO.:-

GUIDED BY
NAME:- MR. ASHISH LENKA
(LECTURE OF COMMERCE)
 ABSTRACT
A share is one unit of ownership interest in a corporation. A share entitles its owner
to a portion of the dividends and residual value of the issuing entity. A shareholder is
also entitled to vote on certain issues at periodic shareholder meetings. This paper
gives the idea about the raising and maintenance of share capital by companies. How
companies raises their capital through issuing shares. It tells us about the different types
of shares and how they issue. Share capital is the backbone of the company without it the
company cannot achieve its goals. paper examines the economic case for rules of
company law which regulate the raising and maintenance of share capital by
companies. The enquiry has practical relevance because the content of company law is
currently under review, and the rules relating to share capital have been singled out for
particular attention. The existing rules apply to all companies and are commonly
rationalised as a means of protecting corporate creditors. The company represents the
third stage in the evolution of forms of business organization. The first two being
sole proprietioship and partnership firms. As distinct from these two, a company
enjoys a separate legal status. The ownership is here separated from management .
the share holders contribute the funds with the company but all of them do not
participate in its day to day management, therefore, they elect ‘Directors’ to
manage the company . companies are goverened by the provisions of the
companies Act,2013 previously it was companies Act, 1956.
 ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the
golden opportunities to complete the project. A special thanks to my teacher MR.
Ashish Lenka whose help stimulating suggestion and encouragement , helped me to
coordinate my project especially in writing this report.
I owe my deep gratitude to my project guide to my teacher put to keep
interest in over project work and guided all along till the completion of our
project work.
I would like to acknowledges with much appreciation the crucial role of
the staff members who gave the permission to use all required accessories to
complete the project work .
I would not forget to remembers friends and my parents members for
their encouragement and more over for this timely support and guidance till the
completion of our project work.

NIRNALI CHHATOI
 DECLARATION

I do here bye declare that all the information provided in the project are
my own and the project is a result of my handwork and dedication . Their work
has not submitted before and the information provided in the project is true and
best to my knowledge and belief.

NAME- NIRNALI CHHATOI

CLASS- +2 SECOND YEAR
ROLL.NO.-33
 CONTENT
S.NO. CHAPTERS PAGES

1. INTRODUCTION 5

2. OBJECTIVES 6

3. RELIANCE INDUSTRIES 7

4. SHARES 8

5. SHARES ISSUED BY RELIANCE 9-10

INDUSTRIES

6. METHODOLOGY 11

7. SWOT ANALYSIS 12

8. CONCLUSION 13

9. BIBILOGRAPHY 14
 INTRODUCTION
The Joint Stock Company is a big form of business organization. The amount required by
the company for its business activities is raised by the issue of shares. The amount so
raised is called ‘Share Capital’ (or capital) of the company. It may be noted that a
company limited by shares will have share capital. A company limited by guarantee or an
unlimited company may not have any share capital. The persons who buy the shares of
company are called ‘Shareholders’. The kinds of share capital are authorised,
registered or nominal capital, issued capital, subscribed capital, unsubscribed
capital, called up capital, paid up capital , reserve capital. It is the portion of a
corporation's equity that has been obtained by the issue of shares in the corporation to a
shareholder, usually for cash. "Share capital" may also denote the number and types of
shares that compose a corporation's share structure. Sometimes, shares are allocated in
exchange for non-cash consideration, most commonly when corporation A acquires
corporation B for shares (new shares issued by corporation A). Here the share capital is
increased to the par value of the new shares, and the merger reserve is increased to the
balance of the price of corporation B. Companies do not actually need to issue shares to
the public. They issue shares in order to raise capital to finance their business operations,
expansions and meet other such financial needs. When you raise capital through the issue
of shares, the funds raised are raised for perpetuity. They do not have to pay you back the
money you invest, so instead, they offer shares which represent part-ownership interest in
that particular company. So, they issue shares in order to raise funds by diluting the
ownership interest of the promoters and original share holders.
 OBJECTIVE
In this project we attempt to know about the share company and how a company
issued shares to public. A share is one unit of ownership interest in a corporation. A
share entitles its owner to a portion of the dividends and residual value of the issuing
entity. A shareholder is also entitled to vote on certain issues at periodic shareholder
meetings. Share ownership can be evidenced by a stock certificate, but can also be an
electronic record. Companies do not actually need to issue shares to the public. They
issue shares in order to raise capital to finance their business operations, expansions and
meet other such financial needs. When you raise capital through the issue of shares, the
funds raised are raised for perpetuity. They do not have to pay you back the money you
invest, so instead, they offer shares which represent part-ownership interest in that
particular company. So, they issue shares in order to raise funds by diluting the ownership
interest of the promoters and original share holders. In the reliance industries ,company
issue the shares. A forfeited share is a share in a company that the owner loses (forfeits)
by failing to meet the purchase requirements. Requirements may include paying an
allotment or call money owed, or avoiding selling or transferring shares during a
restricted period.
 RELIANCE INDUSTRIES

. Reliance Industries is India's largest private sector company on all major financial
parameters. In 2004, Reliance Industries (RIL) became the first Indian private sector
organisation to be listed in the Fortune Global 500 list. The company operates world-class
manufacturing facilities across the country at Allahabad, Barabanki, Dahej, Hazira,
Hoshiarpur, Jamnagar, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara.

Reliance Industries' activities span hydrocarbon exploration and production, petroleum

refining and marketing, petrochemicals, retail and telecommunications. The
petrochemicals segment includes production and marketing operations of petrochemical
products. The refining segment includes production and marketing operations of the
petroleum products. The oil and gas segment includes exploration, development and
production of crude oil and natural gas. The other segment of the company includes
textile, retail business and special economic zone (SEZ) development.

In the year 1966 the RIL was founded by Shri Dhirubhai H.Ambani, it was started as a
small textile manufacturer unit. In May 8, 1973 RIL was incorporated and conformed
their name as RIL in the year 1985. Over the years, the company has transformed their
business from manufacturing of textiles products into a petrochemical major.

The company has set up a texturising / twisting facilities in 1979, RIL has also set up
plants for Polyester Staple Fiber (PSF) in 1986 and for Linear Alkyl Benzene (LAB) &
Purified Terephthalic Acid (PTA) in 1988. RIL has setup a petrochemical facility to
produce HDPE and PVC at Hazira, Gujarat in technical collaboration with DuPont and
BF Goodich respectively.
 SHARES
Shares are units of ownership interest in a corporation or financial asset that provide for
an equal distribution in any profits, if any are declared, in the form of dividends. The two
main types of shares are common shares and preferred shares. A share is an indivisible
unit of capital, expressing the ownership relationship between the company and the
shareholder. The denominated value of a share is its face value, and the total of the face
value of issued shares represent the capital of a company, which may not reflect the
market value of those shares. The income received from the ownership of shares is
a dividend. The process of purchasing and selling shares often involves going through
a stockbroker as a middle man. There are different types of shares such as equity shares,
preference shares.
PREFERENCE SHARES:
Preference shares typically carry a right that gives the holder preferential treatment when
annual dividends are distributed to shareholders. Shares in this category receive a fixed
dividend, which means that a shareholder would not benefit from an increase in the
business' profits. However, usually they have rights to their dividend ahead of ordinary
shareholders if the business is in trouble. Preference shares carry no voting rights
EQUITY SHARES:
Equity, on the other hand, does not have to be repaid. It is the amount of money that
investors put into a company in return for a share of the company's ownership. When
the business makes money, some of the profit is then distributed to those shareholders
as a return on their investment. Initially, the business founder is likely to provide all
the capital of the start-up in return for 100 percent of the company's shares. A start-up
can also raise capital by selling equity to external investors such as business angels.
FORFEITED SHARES:
A forfeited share is a share in a company that the owner loses (forfeits) by failing to meet
the purchase requirements. Requirements may include paying an allotment or call money
owed, or avoiding selling or transferring shares during a restricted period.
Presentation :
Reliance industries Ltd. Was registered with a nominal capital of Rs.5,oo,ooo in
the shares of Rs10 each. It purchased a property from Shah for Rs.1,oo,ooo
payable in fully paid shares of company. Remaining Rs.40,000 shares were offered
to the public, payable as follows :-
Rs.2 on application ; Rs.2 on allotment ; Rs.3 on final call.
All the shares were subscribed and allotted.
Raman, who holds 100 shares failed to pay both the calls and his shares were
forfeited. These were re-issued to Mohit at Rs.8.50 per share fully paid.
Record the above in the company’s journal and prepare a balance sheet .

DATE PARTICULAR L.F DEBIT CREDIT

Property A/c Dr. 1,00,000
To share capital A/c
( being issue of 10,000 shares of Rs.10 1,00,000
each as fully paid in payment of property
purchased)
Bank A/C Dr. 80,000
To share application A/c
(being the receipt of the application money 80,000
on 40,000 shares @ Rs.2 per share)
Share application A/c Dr. 80,000
To share capital A/c 80,000
(being the transfer of application money
on 40,000 shares allotted to share capital)
Share allotment A/c Dr. 80,000
To share capital A/c 80,000
(being the amount due on allotment of
40,000 shares @ Rs.2 per share)
Bank A/c Dr. 80,000
To share allotment A/c. 80,000
(being amount received on the allotment of
40,000 shares @ Rs.2 per share)
Share first call A/c Dr. 1,20,000
To share capital A/c(being amount 1,20,000
due on first call of 40,000 shares @ Rs.3
per share)
Bank A/c Dr. 1,19,700
To share first call A/c 1,19,700
(being amount received on first call on
39,000 shares @ Rs.3 per share)
 Share final call A/c Dr. 1,20,000
To share capital A/c. 1,20,000
(being amount due on final call on 40,000
shares @ Rs.3 per share)
Bank A/c Dr. 1,19,700
To share final call A/c 1,19,700
(being amount received on the final call on
39,000 shares @ Rs.3 per share)
Share capital A/c Dr. 1,000
To share forfeited A/c 400
To share 1st call A/c 300
To share final call A/c 300
(being forfeiture of 100 shares for non
payment of first and final call money as per
resolution of Board of directors)
Bank A/c Dr. 850
Share forfeited A/c Dr. 150
To share capital A/c 1,000
Being the reissue of 100 share 2 Rs.8.50 per
chare fully paid up vide board of directors
resolution no dated)
Share forfeited A/c Dr. 250
To capital reserve A/c
(being the profit on reissue of 100 forfeited 250
shares transferred to capital reserve account)

PARTICULARS NOTE CURRENT PREVIOUS

NO. YEAR YEAR
I. Equities and liabilities:
Share holder’s fund:
(a) Share Capital 1 5,00,000
(b) Reserve and Surpluses 250
5,00,250
II. Assets:
(a) Fixed Asset 1,00,000
1) Tangible Asset
(b) Current Assets 4,00,250
(cash at bank)
5,00,250
 METHODOLOGY
The study has been carried out with a blend of Qualitative approach of research with
corporate constructivist paradigm in order to bring out the practically constructed nature
of reality added up with advocacy and participatory approach for giving this study a
personal touch of emancipation and different dimensions pertaining to the core issue. This
project has required consultation to an assorted range of books and websites that are a
part of the secondary sources. Some research papers and journals too have been referred
to. Plain reading of the concept of shares. Collection of authentic reports and research
papers on share capitals. Forfeited share is a share in a publicly-traded company that the
owner loses (or forfeits) by neglecting to live up to any number of purchase requirements.
In the reliance industries, the company has issued shares from the public. If
applicants fail to pay the allotment amount and the share holders fail to pay the
call money, then company can forfeit such shares. It is a process of withdrawing
the shares allotted and seizing the amount already paid by defaulters.
 SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieve that objective
STRENGTH:
1 .Reliance Industries is one of the biggest players in India .
2.Strong brand name of Reliance Industries.
3.Excellent financial position and strong profitability.
4.One of the few Indian companies to be featured in Forbes.
5.Employs over 25,000 people.
WEAKNESS:
1.Reliance Industries and ONGC had issues regarding the Krishna Godavari basin
exploration
2.Intense competition means limited market share growth

OPPORTUNITIES
1.Growing demand for petroleum products is a huge opportunity for Reliance Industries
2.Buyout of competition to strengthen its position
3. Increasing number of industries and cars in India is a huge opportunity and potential
for growth
4. Tie-ups with global oil companies can boost business for Reliance Industries

THREATS
1.Government regulations and strict guidelines can disrupt operations
2.High Competition can reduce Reliance Industries' market share
3.Environmental laws and NGOs against oil exploration can affect business
4.Economic instability and recession can decline margins and fuel prices
 CONCLUSION
The main function of the authorized capital of a company is to protect the existing
shareholders against possible dilution of their equity interests by the issuing of shares
beyond the stipulated limit. The authority therefore given to companies to purchase their
own shares has given companies the flexibility to decide on matters directly relating to
the share capital of the company. No doubt equity shares have both advantages and
disadavantages but the fact is that equity shares are the most sought financial
instruments for both investment or for speculation. In the reliance industries, in
the current year equities and liabilities and share holder’s fund is Rs.5,00,250 and the
assets is also Rs.5,00,250.
 BIBILOGRAPHY
C.Mohan Juneja , J.S. Arora, RC. Chawla, P.C. Sahoo:2019 Double Entry Book
Keeping , page- 10.1-10.80
www.wikipedia.com
www.slideshare.com
www.scribe.com
www.byjus.com
www.accounting.com
www.sharescapital.com
www.reliance.com
www.reliancehistory.com