Hina Tarey(140)

Esha Patra (179)

Neha Rai (144)
Suresh Kumar Shah(173)
R.Anita Kumari(157)
Ravi Kumar(130)
MANAGEMENT- RELIANCE
COMMUNICATION
Name Designation
Anil D Ambani Chairman
S P Talwar Director
A K Purwar Director
J Ramachandran Director
Deepak Shourie Director
PROFITABILITY RATIO
1) Profit Margin ratio :- This ratio also known as (ROS),measures the amount
of net profit earned by each rupee of revenue.
Profit Margin ratio = PAT /SALES.
2) Gross Operating Margin:- The Gross Operating Margin illustrates the profit
a company makes after paying off its Cost of Goods sold (cost of inventory). Gross
Profit Margin .
Gross Operating Margin = (Sales cost of goods sold) / Sales
3) Net Operating Margin :- ratio used to measure a company's pricing strategy
and operating efficiency.
Net Operating margin = Net profit before interest and tax /Sales
ROI RATIO
y Return on equity (ROE) = Net profit after tax
Equity
y Return on assets (ROA) = Net profit before interest
Total assets
= Net profit after tax + (interest * (1-tax rate))
Total assets
Return on capital employed (ROCE) = Net profit before interest on Ltdebt
Equity + LT-debt
y Earnings per share (EPS) = Net profit after tax
Number of shares outstanding
Asset Turnover :-
The asset turnover is used for the firm efficiency. It
indicates how many times assets were turned over in a
period and thereby generated sales. Turnover ratios
measure efficiency of use of (categories of) assets.Tend
to be industry-specific.
Main ratios:
Total asset turnover=sales/total assets
Fixed asset turnover=sales/fixed assets
Inventory turnover=cost of sales/inventories
Receivable turnover=(netcredit)sales/receivables

SWOT ANALYSIS
Strengths: attributes of the
organization those are helpful to
achieving the objective.
Weaknesses: attributes of the
organization those are harmful to
achieving the objective.
Opportunities: external conditions
those are helpful to achieving the
objective.
Threats: external conditions that is
harmful to achieving the objective
CONTINUED
y Strength
-Low Entry Cost
-Commission Structure
-Fast Activation Process
-Network
-Connectivity
- Data GPRS
y Weakness
-Branding Image
- Distribution problem
- Limited product portfolio-Only Mobile
-Lack of Competitive Strength
- Limited Budget
CONTINUED
y Opportunity
- Preference of GSM over
-CDMA
-New Specialist Application
- Rural Telephony
- New Market,
- Competitors` Vulnerabilities
y Threat
- Political destabilization.
- New Entrants
- IT Development
- Market Demand
- Seasonality, Weather Effects
FINANCIAL STRENGTH RATIOS
USE OF FINANCIAL RATIO
y Financial ratios are useful indicators of a firm's
performance and financial situation.
y Most ratios can be calculated from information provided
by the financial statements.
y Financial ratios can be used to analyze trends and to
compare the firm's financials to those of other firms.
It explain the financial position of a company from the
following point of view.
Long Term solvency
Short term liquidity
Long Term Solvency:- Ability to general cash
internally on from external sources to meet long term
obligation.
Relevant Ratios:
Debt equity Ratio= Debt / Equity
DSCR = PAT+Non cash expensess+Interest on LTL
&MTL / Interest on LTL & MTL+Inter on LTL+MTL
Interest cover= PBIT / Net interest charge
Dividend cover= EPS / Dividend Share
Short Term Liquidity-
It refer to the ability to general cash to meet short term
obligation/claims
(1) Current Ratio
(2) Acid Test (Quick Ratio)
It focus on make up working capital & activity level of its
component.
Low liquidity implies financial risk as in ability to service short
term debt payment may led to bankrupt.
Ratio to be Consider
a) Current Ratio=CA / CL
b) Quick Ratio= CA Inventory / CL
Reference Links
y www.bse-india.com
y http://www.nse-india.com
y http://www.researchandmarkets.com