Professional Documents
Culture Documents
Declaration
I declare that this Assignment is my individual work. I have not copied it from any other
students’ work or from any other source except where due acknowledgement is made
explicitly in the text, nor has any part been written for me by any other person.
Evaluator’s Signature –
Introduction
Reliance is one of the largest producers of Petrochemicals in India, and also top 10 largest
producers around the world. It has a unique portfolio of B2B business spread over Polymer
& Polyester chains.
It produces a large range of Polymers, Elastomers, Polyesters, Aromatics, Fibre-
Intermediates & Composites.
Reliance serves its Worldwide Customers through an extensive network of offices, partners,
& distributors spread around the globe.
Reliance is the world largest integrated producer of the polyester fibre & yarn, 2 nd largest of
Paraxylene & among the Top 10 of Purified, Terephthalic acid, mono ethylene glycol &
polypropylene. It continues to set global benchmarks in product quality, standards &
services.
Management
Mukesh Dhirubhai Ambani is an Indian Business Tycoon & an Indian Billionaire. He is the
Managing Director (MD) and the Chairman of Reliance Petrochemicals. He is the second
richest person in Asia and 8th richest person in the world.
Reliance Industries is one of the fortune 500 companies. He has done his graduation in
Chemical Engineering from Institute of Chemical Technology. He has also enrolled for MBA
at Stanford University but he withdrew in 1980 to help his father Dhirubhai Ambani to build
Reliance. His father felt that real life skills were more important to gain experience & not by
sitting in the classroom.
Vision
To be one of the Top 5 PetroChemicals Industries in the world.
Mission
To enhance the living and delivering happiness and smile by harnessing the power of
Chemistry.
Annual Report Analysation
Business Entity and Dual Aspect Concept
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mths mths mths mths mths
EQUITIES
AND
LIABILITIE
S
SHAREHO
LDER'S
FUNDS
NON-
CURRENT
LIABILITIE
S
CURRENT
LIABILITIE
S
INCOME
EXPENSES
Cost Concept
Conservatism
Consistency
Business Entity Concept:
According to this principle the business organization & its owners are treated
as separate entities. This is necessary to record the transactions of business
separately & differentiate them from the personal transactions of the owner. It
helps to ascertain the correct Financial Position of the Organization.
Going-Concern Concept:
It is a principle which describes an organization that can continue to operate
without the threat of Liquidation, and thus run the business for a foreseeable
future. This concept assumes that a business has perpetual existence or
continued existence. In simple words it means that the business will run for a
long period of time.
Cost Concept:
Cost Concept is a part of GAAP. It states that assets when recorded should be
recorded at the price which the organization has paid & not at the current
Market Price which might be higher or lower than the historical cost.
Dual Aspect:
This concept states that as per double entry accounting every transaction has
two sides that is one debit and one credit. They both are equal and opposite in
nature. It is used by all accounting frameworks for generating accurate &
reliable Final Accounts.
Realization Concept:
This principle is a concept that states that revenues of a business should only
be recorded once they are earned. That is when the business can reasonably
expect that their customer will pay the money for goods and services that they
have purchased.
Matching Concept:
According to this concept on expenses should be reported in the same period
in which the corresponding revenue is earned. Thus, all the expenses whether
paid or not & all the revenues whether received or not are to be recorded to
calculate the accurate profit or loss of the Financial Year.
Consistency:
In accountancy, the convention of consistency states that the same accounting
methods or principles should be used for preparation of financial statements
over a period of time as it facilitates comparison in both the directions that is
Intra firm and Inter firm.
Conservatism:
This accounting convention states that all the anticipated losses should be
recorded while all the anticipated gains should be ignored. It is a policy of
playing safe. Provisions should be made for all the losses even though the
amount cannot be determined. It is also known as Doctrine of Prudence.
Materiality:
This principle states that the business should only include the information that
is important for the parties, only relevant facts should be presented in the
annual reports of the organization. Items that are large enough to matter or
impact are materials and should be displayed in the financial statements.
Full Disclosure:
This convention states that a business should report all the necessary
information in their Financial Statements and should not hide anything, no
false information should be displayed in order to improve the final accounts.
This principle suggests that these financial statements should be prepared with
honesty.