Comparative study of Reliance Jio

Limited and Bharti AirtelLimited.

 Introduction
In this project we are going to analyze the financial statement of two
companies, they are Reliance Jio Infocomm Limited and Bharti Airtel
Limited.
• Meaning of the financial analysis
• The process of reviewing and analyzing a company’s financial
statements to make better economic decisions is called analysis of
financial statements. In other words, the process of determining
financial strengthsand weakness of the entity by establishing the
strategic relationship between the items of the balance sheet, profit
and loss account, and other financial statements.
• The term ‘analysis’ means the simplification of financial data by
methodical classification of the data given in the financial
statements, ‘interpretation’ means, ‘explaining the meaning and
significance of thedata so simplified’. However, both ‘analysis and
interpretation’ are interlinked and complementary to each other.
 Objective of study
• To make inter-firm comparison.
• To help in decision making and control.
• To assess the progress of the firm over a period of time.
• To identify the reasons for changes in profitability and financial position
ofthe firm.
• To assess the earning capacity or profitability of the firm.
• To assess the operational efficiency and managerial effectiveness.
• To assess the short term as well as long term solvency position of the
firm.
• To guide or determine the dividend action.
 Research Methodology
• Limitations
• Scope of the study.
• Techniques or tools to be used.
• Collection of the data.
 Data Analysis
• In net profit margin, the 1st rank has been given to Reliance Jio because its net
profit margin is higher thanas compared to Airtel.
• In current ratio 1st rank has been given to Airtel becauseits current ratio is
higher as compared to Reliance Jio.
• In quick ratio, 1st rank has been given to Reliance Jio as itsquick ratio is more than
Airtel.
• Same as in the return on assets, 1st rank has been givenReliance Jio and
2nd rank to Airtel
 Conclusion
• This study was conducted to evaluate the financial performance analysis of Reliance Jio
Infocomm Limited and Bharti Airtel Limited for the period of 4 years ranging from 2017 to
2020. It helps to explore the strength andweakness of the company.
• Examination and explanation of financial statements show that, the present financial
position of Reliance Jio Infocomm Limited has improvedquite a lot from the previous
years.
• The studies shows that, the present financial position of Bharti Airtel hasnot improved in
fact the profit has been decline and the company has incurred losses.
• Of the two companies, according to the performance of the last 4 years
Reliance Jio Infocomm Limited has a better position than Bharti Airtel

• The central focus of the study was to conduct an evaluative study of the financial state of
the firm by using ratio analysis, comparative financial statements and trend analysis by
taking into accounts the past years of thecompany financial statements.

• The study concluded that overall financial performance of Reliance Jio

Infocomm Limited is good as compared to Bharti Airtel Limited.
 Suggestions
 The management of the firm must be made more vigilant to maintain or improve the present situation
because if there is any further fall in the current ratio. It may be a serious problems for the firm.

 Company should adopt suitable policies and measures

 Adequate sales promotion efforts can be adopted to increase sales.

 Airtel should tie up with another Indian telecom company to face the competition created by Reliance
Jio

 Reliance Jio should avail more Network towers in the urban areas as the people in urban facing more
network issue as compare to rural area

 Airtel should focus on increase a demand of there network in Rural area as the Reliance Jio is on verge
of creating monopoly in most rural areas of the country

 Reliance Jio should bring more smart phones which can help them to enjoy in this competitive market

 Airtel is mainly facing competition from Reliance Jio because Jio comes under Govt. initiative Make in
India program , so Airtel should talk to Govt. to survive in this market.
 Webliography
https://en.m.wikipedia.org/wiki/Jio
https://m.wikidata.org/wiki/Q18643672
https://www.marketing91.com/swot-analysis-of-airtel/
https://www.swotandpestle.com/bharti-airtel/
https://www.marketing91.com/swot-analysis-of-reliance-jio/
https://www.mbaskool.com/brandguide/telecom-service-providers/16942-reliance-jio.html
https://www.airtel.in/vision-mission
https://www.moneycontrol.com/financials/relianceindustries/profit-lossVI/RI
https://www.moneycontrol.com/financials/bhartiairtel/profit-lossVI/BA08
https://wap.business-standard.com/company/bharti-airtel-15542/information/company-history
https://finpedia.co/bin/Bharti%20Airtel/
https://en.m.wikipedia.org/wiki/Jio
https://en.m.wikipedia.org/wiki/Bharti_Airtel