Reliance Communications

CIE-2 Presentation Component

Financial Accounting For Managers

Subject Cost : MBC1010

Tool – Comparative Analysis

MBA – 1(A) 2023-2025

Presented by :
Urvashi Jolapara & Amisha Ranpariya
Required documents and Financial years

Required documents :

1. Balance sheet of Reliance Communications Ltd.

2. Profit and Loss statement of Reliance Communications Ltd.
Financial Years :
• 2015-2016
• 2016-2017
• 2017-2018
Flow of presentation

Introduction of Reliance communications Ltd.

Key services and products
Introduction of financial Analysis
Introduction of Comparative Analysis
Comparative Analysis of Balance Sheet of Reliance Communications (2016-2018)
Comparative Analysis of Profit & Loss statement of Communications (2016-2018)
Conclusion
References
 Introduction of Reliance communications Ltd.

Reliance Communications is one of India's largest integrated communications service providers. It

serves consumers and enterprises with a digital network that supports data, voice, and video.
Reliance Communications has about 150 million customers, including:

• Over 40,000 Indian and multinational corporations

• Close to 300 of the finest enterprise and carrier companies globally

Reliance Communications was founded in India on July 15, 2004 as Reliance Infocomm
Limited. It became Reliance Communications Limited in 2006.

The company owns and operates the world's largest Next-Generation IP-enabled connectivity
infrastructure. This infrastructure includes fiber optic cable systems in India, the USA, Europe,
Middle East, and the Asia Pacific region.

Reliance Communications is listed on the National Stock Exchange and the Bombay Stock
Exchange. It is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies.
 Reliance Communications (RCOM) has several subsidiaries, including:

• GCX: Owns the world's largest private under-sea cable system

• Globalcom IDC Limited: A subsidiary of RCOM
• Reliance Infratel Limited (RITL): A subsidiary of RCOM that was incorporated in 2001
• Reliance Realty Ltd: A subsidiary of RCOM that will seek approval to sell properties
• Campion Properties Ltd: A subsidiary of RCOM that will seek approval to sell properties
• Reliance Big TV: The direct-to-home (DTH) arm of RCOM

RCOM serves nearly 40,000 Indian and global corporations, including over 200 global,
regional, and domestic carriers.
Key Services and Products :

1 Wireless Communication
Reliance Communication Companies offer state-of-the-art wireless
communication services, ensuring reliable connectivity wherever
you go.

2 Fiber Optic Networks

With their extensive fiber optic networks, they provide high-speed
internet and data transmission solutions for businesses of all sizes.

3 Cloud Services
Reliance Communication Companies offer cloud-based services,
allowing businesses to store and access their data securely from
anywhere.

4 Internet of Things (IoT)

They provide cutting-edge IoT solutions, enabling businesses to
connect and manage devices for improved efficiency and
productivity.
 Introduction of Financial Statement Analysis

Financial statement analysis is a process that evaluates a company's performance, value, and
financial health. It involves reviewing and analyzing a company's financial statements, which
include:

• Balance sheet
• Income statement
• Statement of cash flows

Financial statement analysis is used to:

• Make better financial decisions

• Devise plans to earn more income in the future
• Evaluate risks, performance, valuation, and future prospects
• Identify trends and relationships between financial statement items
• Financial statement analysis uses Three techniques such as: Horizontal analysis,
Vertical analysis,
Ratio analysis.
Illustration of Comparative Analysis

Financial Performance Customer Satisfaction

Market Share Product Features

 Introduction of Horizontal / Comparative Analysis

Horizontal analysis is a financial analysis technique used to evaluate a company’s performance over time.

Horizontal analysis helps companies:

• Evaluate performance over time
• Spot changes in account balances
• Determine growth and financial position versus competitors
• Secure investors
• Understanding market trends

Horizontal analysis uses a base year and a comparison year.

For example, a company might compare sales from their current year to sales from the
prior year.

Horizontal analysis can help companies identify trends, such as:

• Whether expenses are going up or down
• Whether revenues are increasing, decreasing, or flatlining
 Comparative Analysis of Balance Sheet of Reliance Communications (2016-2017)
BALANCE SHEET OF RELIANCE 2016 2017
COMMUNICATIONS (in Rs. Cr.) Change Change in (%)

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 1,244.00 1,244.00 0 0
TOTAL SHARE CAPITAL 1,244.00 1,244.00 0 0
Reserves and Surplus 26,206.00 22,840.00 -3366 -12.84438678
TOTAL RESERVES AND SURPLUS 26,206.00 22,840.00 -3366 -12.84438678
TOTAL SHAREHOLDERS FUNDS 27,450.00 24,084.00 -3366 -12.26229508
NON-CURRENT LIABILITIES 0 #DIV/0!
Long Term Borrowings 24,334.00 18,629.00 -5705 -23.44456316
Deferred Tax Liabilities [Net] 0 0 0 #DIV/0!
Other Long Term Liabilities 4,488.00 1,763.00 -2725 -60.71746881
Long Term Provisions 23 31 8 34.7826087
TOTAL NON-CURRENT LIABILITIES 28,845.00 20,423.00 -8422 -29.19743456
CURRENT LIABILITIES 0 #DIV/0!
Short Term Borrowings 3,656.00 7,928.00 4272 116.8490153
Trade Payables 3,877.00 2,435.00 -1442 -37.19370647
Other Current Liabilities 9,010.00 17,797.00 8787 97.52497225
Short Term Provisions 1,222.00 1,222.00 0 0
TOTAL CURRENT LIABILITIES 17,765.00 29,382.00 11617 65.39262595
TOTAL CAPITAL AND LIABILITIES 74,060.00 73,889.00 -171 -0.23089387
 ASSETS 2016 2017 Change Change in (%)
NON-CURRENT ASSETS
Tangible Assets 14,759.00 14,751.00 -8.00 -0.054204214
Intangible Assets 11,443.00 13,797.00 2,354.00 20.57152845
Capital Work-In-Progress 709 1,130.00 421.00 59.37940762
Other Assets 0 0 0.00 #DIV/0!
FIXED ASSETS 34,172.00 29,744.00 -4,428.00 -12.95797729
Non-Current Investments 17,090.00 17,090.00 0.00 0
Deferred Tax Assets [Net] 1,498.00 3,558.00 2,060.00 137.5166889
Long Term Loans And Advances 2,719.00 0 -2,719.00 -100
Other Non-Current Assets 5,818.00 5,466.00 -352.00 -6.050189068
TOTAL NON-CURRENT ASSETS 61,297.00 55,858.00 -5,439.00 -8.873191184
CURRENT ASSETS 0.00 #DIV/0!
Current Investments 4,712.00 4,599.00 -113.00 -2.398132428
Inventories 119 108 -11.00 -9.243697479
Trade Receivables 1,177.00 1,636.00 459.00 38.99745115
Cash And Cash Equivalents 792 643 -149.00 -18.81313131
Short Term Loans And Advances 1,201.00 6,215.00 5,014.00 417.4854288
OtherCurrentAssets 4,762.00 4,830.00 68.00 1.427971441
TOTAL CURRENT ASSETS 12,763.00 18,031.00 5,268.00 41.27556217
TOTAL ASSETS 74,060.00 73,889.00 -171.00 -0.23089387
 Series2 Series1 Series2 Series1

TOTAL CAPITAL AND LIABILITIES TOTAL ASSETS

TOTAL CURRENT LIABILITIES TOTAL CURRENT ASSETS
Short Term Provisions OtherCurrentAssets
Other Current Liabilities Short Term Loans And Advances
Trade Payables Cash And Cash Equivalents
Short Term Borrowings Trade Receivables
CURRENT LIABILITIES
Inventories
TOTAL NON-CURRENT LIABILITIES
Current Investments
Long Term Provisions
CURRENT ASSETS
Other Long Term Liabilities
TOTAL NON-CURRENT ASSETS
Deferred Tax Liabilities [Net]
Other Non-Current Assets
Long Term Borrowings
Long Term Loans And Advances
NON-CURRENT LIABILITIES
Deferred Tax Assets [Net]
TOTAL SHAREHOLDERS FUNDS
Non-Current Investments
TOTAL RESERVES AND SURPLUS
FIXED ASSETS
Reserves and Surplus
TOTAL SHARE CAPITAL Other Assets

Equity Share Capital Capital Work-In-Progress

SHAREHOLDER'S FUNDS Intangible Assets

EQUITIES AND LIABILITIES Tangible Assets

NON-CURRENT ASSETS

BALANCE SHEET OF RELIANCE COMMUNICATIONS (in Rs. Cr.) ASSETS

-10000 -5000 0 5000 10000 15000 -6000 -4000 -2000 0 2000 4000 6000
 Interpretation :

1) Based on the provided balance sheet data for Reliance Communications in 2016-17, it is evident
that the company experienced a decrease in total shareholders' funds and non-current assets,
indicating a decline in its overall financial health.

2) The company's long-term borrowings decreased significantly, while short-term borrowings and
current liabilities increased, suggesting potential liquidity challenges.

3) Furthermore, there was a decrease in tangible assets and an increase in intangible assets, possibly
indicating a shift in the company's focus.

4) Overall, the data reflects a challenging period for Reliance Communications with declining
assets and fluctuating liabilities, indicating a need for careful financial management and strategic
decision-making.
 Comparative Analysis of Balance Sheet of Reliance Communications (2016-2018)

BALANCE SHEET OF RELIANCE 2016 2018

COMMUNICATIONS (in Rs. Cr.) Change Change in (%)

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 1,244.00 1,383.00 139.00 11.17363344
TOTAL SHARE CAPITAL 1,244.00 1,383.00 139.00 11.17363344
Reserves and Surplus 26,206.00 7,933.00 -18,273.00 -69.72830649
TOTAL RESERVES AND SURPLUS 26,206.00 7,933.00 -18,273.00 -69.72830649
TOTAL SHAREHOLDERS FUNDS 27,450.00 9,316.00 -18,134.00 -66.06193078
NON-CURRENT LIABILITIES 0.00 #DIV/0!
Long Term Borrowings 24,334.00 9,359.00 -14,975.00 -61.53940988
Deferred Tax Liabilities [Net] 0 0 0.00 #DIV/0!
Other Long Term Liabilities 4,488.00 83 -4,405.00 -98.15062389
Long Term Provisions 23 18 -5.00 -21.73913043
TOTAL NON-CURRENT LIABILITIES 28,845.00 9,460.00 -19,385.00 -67.20402149
CURRENT LIABILITIES 0.00 #DIV/0!
Short Term Borrowings 3,656.00 18,595.00 14,939.00 408.6159737
Trade Payables 3,877.00 3,110.00 -767.00 -19.78333763
Other Current Liabilities 9,010.00 14,249.00 5,239.00 58.14650388
Short Term Provisions 1,222.00 1,219.00 -3.00 -0.245499182
TOTAL CURRENT LIABILITIES 17,765.00 37,173.00 19,408.00 109.2485224
 ASSETS 2016 2018 Change Change in (%)
NON-CURRENT ASSETS
Tangible Assets 14,759.00 2,126.00 -12,633.00 -85.59523003
Intangible Assets 11,443.00 104 -11,339.00 -99.09114743
Capital Work-In-Progress 709 160 -549.00 -77.43300423
Other Assets 0 0 0.00 #DIV/0!
FIXED ASSETS 34,172.00 2,390.00 -31,782.00 -93.0059698
Non-Current Investments 17,090.00 13,559.00 -3,531.00 -20.66120538
Deferred Tax Assets [Net] 1,498.00 3,558.00 2,060.00 137.5166889
Long Term Loans And Advances 2,719.00 0 -2,719.00 -100
Other Non-Current Assets 5,818.00 1,164.00 -4,654.00 -79.99312479
TOTAL NON-CURRENT ASSETS 61,297.00 20,671.00 -40,626.00 -66.27730558
CURRENT ASSETS 0.00 #DIV/0!
Current Investments 4,712.00 4,225.00 -487.00 -10.33531409
Inventories 119 64 -55.00 -46.21848739
Trade Receivables 1,177.00 1,672.00 495.00 42.05607477
Cash And Cash Equivalents 792 201 -591.00 -74.62121212
Short Term Loans And Advances 1,201.00 3,640.00 2,439.00 203.080766
OtherCurrentAssets 4,762.00 25,476.00 20,714.00 434.9853003
TOTAL CURRENT ASSETS 12,763.00 35,278.00 22,515.00 176.4083679
TOTAL ASSETS 74,060.00 55,949.00 -18,111.00 -24.45449635
 TOTAL ASSETS
Chart Title Chart Title
Series2 Series1
-18.111.00
TOTAL CAPITAL AND LIABILITIES 22,515.00
TOTAL CURRENT LIABILITIES
20,714.00
Short Term Provisions
2,439.00

Other Non-Current Assets Trade Receivables

Other Current Liabilities
-591.00
Trade Payables
Short Term Borrowings 495.00
CURRENT LIABILITIES -55.00
TOTAL NON-CURRENT LIABILITIES -487.00
Long Term Provisions 0.00
Other Long Term Liabilities
-40,626.00
Deferred Tax Liabilities [Net]
-4,654.00
Long Term Borrowings
NON-CURRENT LIABILITIES -2,719.00

TOTAL SHAREHOLDERS FUNDS 2,060.00

TOTAL RESERVES AND SURPLUS -3,531.00
Reserves and Surplus

Other Assets
-31,782
TOTAL SHARE CAPITAL
0
Equity Share Capital
-549
SHAREHOLDER'S FUNDS
-11,339.00
EQUITIES AND LIABILITIES
-12,633.00

BALANCE SHEET OF RELIANCE COMMUNICATIONS (in Rs. Cr.)

-30000 -20000 -10000 0 10000 20000 30000 -200 -100 0 100 200 300 400 500
 Interpretation :

1) Reliance Communications' balance sheet indicates significant financial challenges between 2016 and 2018.

2) The company experienced a decline in shareholders' funds, mainly due to a decrease in reserves and surplus.

3) Non-current liabilities decreased, primarily due to reduced long-term borrowings, but the company's non-
current assets also saw a decline, particularly in tangible and intangible assets.

4) Despite improvements in current assets like trade receivables and short-term loans, Reliance
Communications struggled to overcome its financial difficulties during this period.

5) Overall, the company has made progress in strengthening its financial position, but challenges remain in
managing its long-term debt.
 Interpretation :

6) Reliance Communications' balance sheet indicates significant financial challenges between 2016 and
2018.

7) The company experienced a decline in shareholders' funds, mainly due to a decrease in reserves and
surplus. Non-current liabilities decreased, primarily due to reduced long-term borrowings, but the
company's non-current assets also saw a decline, particularly in tangible and intangible assets.

8) Despite improvements in current assets like trade receivables and short-term loans, Reliance
Communications struggled to overcome its financial difficulties during this period.
 Comparative Analysis of Profit and Loss
Statement of Reliance Communications
(2016-2017)
PROFIT & LOSS ACCOUNT OF RELIANCE COMMUNICATIONS (in Rs. Mar-16 Mar-17
Cr.) Change Change in (%)

INCOME
REVENUE FROM OPERATIONS [GROSS] 25,383.00 6,554.00 -18,829.00 -74.179569
Less: Excise/Service Tax/Other Levies 3,640.00 0 -3,640.00 -100
REVENUE FROM OPERATIONS [NET] 21,743.00 6,554.00 -15,189.00 -69.85696546
TOTAL OPERATING REVENUES 21,954.00 6,554.00 -15,400.00 -70.14667031
Other Income 402 83 -319.00 -79.35323383
TOTAL REVENUE 22,356.00 6,637.00 -15,719.00 -70.31222043
EXPENSES 0.00 #DIV/0!
Cost Of Materials Consumed 0 0 0.00 #DIV/0!
Purchase Of Stock-In Trade 0 0 0.00 #DIV/0!
Operating And Direct Expenses 10,801.00 4,326.00 -6,475.00 -59.94815295
Changes In Inventories Of FGWIP And Stock In Trade 0 0 0.00 #DIV/0!
Employee Benefit Expenses 1,120.00 442 -678.00 -60.53571429
Finance Costs 2,924.00 255 -2,669.00 -91.27906977
Depreciation And Amortisation Expenses 4,484.00 821 -3,663.00 -81.69045495
Other Expenses 2,797.00 641 -2,156.00 -77.08258849
TOTAL EXPENSES 22,126.00 6,485.00 -15,641.00 -70.69059026
PROFIT/LOSS BEFORE EXCEPTIONAL, EXTRAORDINARY ITEMS AND 230 152
TAX -78.00 -33.91304348
Exceptional Items 0 0 0.00 #DIV/0!
PROFIT/LOSS BEFORE TAX 230 152 -78.00 -33.91304348
TAX EXPENSES-CONTINUED OPERATIONS 0.00 #DIV/0!
Current Tax 87 24 -63.00 -72.4137931
Less: MAT Credit Entitlement 0 0 0.00 #DIV/0!
Deferred Tax -442 -92 350.00 -79.18552036
Other Direct Taxes 0 0 0.00 #DIV/0!
TOTAL TAX EXPENSES -428 -90 338.00 -78.97196262
PROFIT/LOSS AFTER TAX AND BEFORE EXTRAORDINARY ITEMS 658 242
-416.00 -63.2218845
PROFIT/LOSS FROM CONTINUING OPERATIONS 658 242 -416.00 -63.2218845
PROFIT/LOSS FOR THE PERIOD 658 -1,286.00 -1,944.00 -295.4407295
 2016-2017
Series1 Series2

100000

0
r.) E ] s ] S e E S d e s e s s s s S X s X S x t x s S S S D
.s C OM OSS vie NET UE om NU SE me rad nse rad nse ost nse nse SE TA em TA ON t Ta en Ta axe S E EM ON IO
C R Le [ N n c E E N s u T e T e C e e E N D It E T I n e m e d T E N IT T I E R
R E p p
IN [G her NS EV er I REV XP on k-In Ex k In Ex nce Ex Ex XP AN na FOR RA rre titl err ect XP RY RA E P p p l
( in E C c ct
oc fit ina on er L
E S u
tio BE PE C t En De r Di AX INA OPE TH
f r E
-100000
S NS Ot TIO R th L ls o
ION T IO ax/ RA ING O OTA ria f St Dire d St ene F sati Oth OTA ITEM cep S S D O di
h e T R D G OR
T PE T T e O d Ex /LO UE e L
AT A
ER vice O ERA at n An e B or
ti T Y Cr Ot TA AO UIN S S F
N IC P M P f M ase g A IP oye m N AR IT TIN A T TO XTR TIN LO
U -200000M O /Se RO L O O rch tin GW pl A I O F N M /
D E
M O i s e E F TA o
t
s Pu ra f F Em A nd
O R R
P S -C
O
ss
:
R E CON FIT
M R
F Exc U TO C e e O
CO Op es O tio
n RA E L F O M PR
CE U E s s : V EN ri ia E XT E NS BE FRO
N
E Le RE o c L, P D S
N -300000 nt re EX AN OS
E LIA R EV n ve ep NA X X L
I D O A
R
In PT
I T TA FIT/
OF s E R
T ge EX
C TE PRO
O UN -400000 h an E AF
S
AC
C C OR OS
S B EF T /L
S S I
LO -500000 OS R OF
& L P
IT T/
OF O FI
PR PR
-600000

-700000

-800000

-900000
 Interpretation :

1) Reliance Communications faced significant financial challenges in 2017, as indicated by a

substantial decrease in net revenue and a mounting loss of Rs. 295.44 Cr.

2) The company's operations experienced a sharp decline, leading to a negative profit margin.

3) The hefty losses were driven by high operating expenses, finance costs, and depreciation,
highlighting the need for strategic restructuring and cost management to stabilize its financial
health and regain profitability.
 PROFIT & LOSS ACCOUNT OF RELIANCE COMMUNICATIONS (in Rs. Mar-16 Mar-18
Cr.) Change Change in (%)

INCOME
REVENUE FROM OPERATIONS [GROSS] 25,383.00 4,593.00 -20,790.00 -81.90521215
Less: Excise/Sevice Tax/Other Levies 3,640.00 0 -3,640.00 -100
REVENUE FROM OPERATIONS [NET] 21,743.00 4,593.00 -17,150.00 -78.87596008
TOTAL OPERATING REVENUES 21,954.00 4,593.00 -17,361.00 -79.07898333
Other Income 402 91 -311.00 -77.36318408
TOTAL REVENUE 22,356.00 4,684.00 -17,672.00 -79.04813026
EXPENSES 0.00 #DIV/0!
Cost Of Materials Consumed 0 0 0.00 #DIV/0!
Purchase Of Stock-In Trade 0 0 0.00 #DIV/0!
Operating And Direct Expenses 10,801.00 2,822.00 -7,979.00 -73.87278956
Changes In Inventories Of FGWIP And Stock In Trade 0 0
0.00 #DIV/0!
Employee Benefit Expenses 1,120.00 427 -693.00 -61.875
Finance Costs 2,924.00 186 -2,738.00 -93.63885089
Depreciation And Amortisation Expenses 4,484.00 721 -3,763.00 -83.9206066
Other Expenses 2,797.00 536 -2,261.00 -80.83661065
TOTAL EXPENSES 22,126.00 4,692.00 -17,434.00 -78.79417879
PROFIT/LOSS BEFORE EXCEPTIONAL, EXTRAORDINARY ITEMS AND 230 -8
TAX -238.00 -103.4782609
Exceptional Items 0 0 0.00 #DIV/0!
PROFIT/LOSS BEFORE TAX 230 -8 -238.00 -103.4782609
TAX EXPENSES-CONTINUED OPERATIONS 0.00 #DIV/0!
Current Tax 87 4 -83.00 -95.40229885
Less: MAT Credit Entitlement 0 0 0.00 #DIV/0!
Deferred Tax -442 12 454.00 -102.7149321
Other Direct Taxes 0 0 0.00 #DIV/0!
TOTAL TAX EXPENSES -428 16 444.00 -103.7383178
PROFIT/LOSS AFTER TAX AND BEFORE EXTRAORDINARY ITEMS 658 -24
-682.00 -103.6474164
PROFIT/LOSS FROM CONTINUING OPERATIONS 658 -24
-682.00 -103.6474164
PROFIT/LOSS FOR THE PERIOD 658 -23,912.00 -24,570.00 -3734.042553
 2016-2018
Series1 Series2

100000

0
.)E ] s ] S e E S d e s e s s s s S X s X S x t x s S S S D
. Cr
O M OSS vie NET UE om NU SE me rad nse rad nse ost nse nse SE TA em TA ON t Ta en Ta axe S E EM ON IO
e [ N c E N u T e T e C e e N It E I m d T N T I R
Rs C R r L S E I n V E s n p
IN [G he N EV er RE XP on k-I Ex k In Ex nc Ex Ex XP AN na FO RA rr tit er ec XP RY RA E p e p p E D l R T e n l e r e t E I T P E
( in E C t t a r E S o E Cu En ef ir E A E H
-100000
N S O NS /Ot TIO G R Oth AL a
c
ls Stoc irec Sto nefi F in tion the AL EM pti BE OP i t D r D AX IN OP R T
I x A N T i a T e S d e T D
TI
O AT Ta PER TI TO er f D d e
tis
O O T c
T Y I Ex LOS UE
D e h L R G O
CA ER vice O ERA at se O And An ee B or R / IN T
Cr Ot TA AO UIN S S F
I P M a I P y m A IT A O
T XT TI LO R N
UN -200000M O /Se ROM L O
P f h ng W lo A IN F NT
M e F A s t O urc rati FG mp nd RD P RO -CO s:
M E
E CON FIT
/
M R O i s E T C o P e f E A O S e s R O
c A
CO F Ex U TO Op es O tio
n R SE L F O M PR
CE
N U E s s : V EN o ri cia E XT
PEN BE FRO
N e E nt , D
LIA VE L R ve pr
e AL EX AN OS
S
RE RE -300000 In De ION T A X
A X / L
In PT T FIT
OF es CE ER R O
N T g X T
n E AF P
COU -400000 Cha RE S
O S
AC F /L
O
SS BE IT
O S F
&
L OS PR
O
IT T /L
-500000 I
OF OF
PR PR

-600000

-700000

-800000

-900000
 Interpretation :

1) In 2016, Reliance Communications faced significant challenges, leading to a net loss of Rs. 24,570 Cr.

2) However, by 2018, the company managed to reduce its losses to Rs. 3,734.04 Cr.

3) This improvement can be attributed to strategic cost-cutting measures and a decrease in operating
expenses.

4) Despite the losses, the company's ability to minimize its financial downturn suggests a potential
turnaround strategy, demonstrating efforts to stabilize its financial position over the two-year period.
 Conclusion

Based on the provided balance sheet data for Reliance Communications, it is evident that the
company faced significant challenges between March 2016 and March 2018.

There was a substantial decline in shareholders' funds, non-current assets, and overall assets,
indicating financial instability. The company experienced a sharp decrease in reserves and surplus,
long-term borrowings, and fixed assets, coupled with a notable increase in current liabilities.

These factors collectively point towards a period of financial distress and a need for strategic
restructuring and financial recovery for Reliance Communications.
Thank You!!