Rahul Mehrotra Presentation on Reliance Financial Ratio
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Transcript of Rahul Mehrotra Presentation on Reliance Financial Ratio
Presented By
Rahul Mehrotra
PGDMSec-B
1. Reliance Communications – Over view2. Profit&loss Account3. Balance sheet4. Ratios5. Stock Exchange6. Conclusion
Presentation Content
Content
so
Welcome Everybody
Reliance communication Ltd.
Type Public(BSE: RCOM)
Founded 2004
Headquarters Navi Mumbai, India
Key peopleAnil Ambani, Chairman and Managing Director , Chairman Reliance-ADA GroupGurdeep Singh CEO
Industry Telecommunications
Products CDMA service, GSM service, Broadband Internet Service
Revenue 11,110 crore (US$2.01 billion)
Employees 28,065 (2010)
Website www.rcom.com
Profit & Loss Reliance Communications Ltd Year Mar 12 Mar 11 Mar 10 Mar 09 INCOME : Sales Turnover 12,135.00 13,309.00 13,554.60 15,086.66 Excise Duty 1,025.00 1,179.00 1,263.99 1,476.08 Net Sales 11,110.00 12,130.00 12,290.61 13,610.58 Other Income 753 1,152.00 2,399.27 4,246.80 Stock Adjustments 0 0 0 0 Total Income 11,863.00 13,282.00 14,689.88 17,857.38 EXPENDITURE : Raw Materials 0 0 0 0 Power & Fuel Cost 0 0 144.27 138.32 Employee Cost 475.71 600.76 671.05 757.06 Other Manufacturing Expenses 6,919.00 9,316.00 8,890.69 6,931.39 Selling and Administration Expenses 1,262.29 1,685.24 1,691.04 2,019.82 Miscellaneous Expenses 45 99 48.99 226.53 Less: Pre-operative Expenses Capitalised 0 0 0 0 Total Expenditure 8,702.00 11,701.00 11,446.04 10,073.12 Operating Profit 3,161.00 1,581.00 3,243.84 7,784.26 Interest 1,265.00 846 1,113.13 1,035.68 Gross Profit 1,896.00 735 2,130.71 6,748.58 Depreciation 1,741.00 1,595.00 1,511.24 1,933.51 Profit Before Tax 155 -860 619.47 4,815.07 Tax -1 -102 140.54 0 Fringe Benefit tax 0 0 0 12.4 Deferred Tax 0 0 0 0 Reported Net Profit 156 -758 478.93 4,802.67 Extraordinary Items 30 445 -14 3,459.99 Adjusted Net Profit 126 -1,203.00 492.93 1,342.68 Adjst. below Net Profit 0 1 0 0 P & L Balance brought forward 0 662 502.75 4,300.24 Statutory Appropriations 0 0 0 0 Appropriations 151 -95 319.54 8,600.16 P & L Balance carried down 5 0 662.14 502.75 Dividend 52 103 175.44 165.12 Preference Dividend 0 0 0 0 Equity Dividend % 5 10 17 16 Earnings Per Share-Unit Curr 0.72 0 2.18 23.13 Earnings Per Share(Adj)-Unit Curr Book Value-Unit Curr 218.98 233.26 244.66 250.44
Year Mar 12 Mar 11 Mar 10 Mar 09
SOURCES OF FUNDS :
Share Capital 1,032.00 1,032.00 1,032.01 1,032.01
Reserves Total 44,165.0047,112.0049,466.8850,658.31
Equity Share Warrants 0 0 0 0
Equity Application Money 0 0 0 0
Total Shareholders Funds 45,197.0048,144.0050,498.8951,690.32
Secured Loans 23,365.0013,606.00 3,000.00 3,000.00
Unsecured Loans 0 0 21,478.2827,903.61
Total Debt 23,365.0013,606.0024,478.2830,903.61
Other Liabilities 4,508.00 3,283.00 0 0
Total Liabilities 73,070.0065,033.0074,977.1782,593.93
Balance sheet APPLICATION OF FUNDS :
Gross Block 52,455.00 40,904.00 39,838.17 37,941.15
Less : Accumulated Depreciation 15,071.00 12,063.00 9,225.69 6,533.38
Less:Impairment of Assets 0 0 0 0
Net Block 37,384.00 28,841.00 30,612.48 31,407.77
Lease Adjustment 0 0 0 0
Capital Work in Progress 765 9,888.00 1,683.52 3,643.86
Investments 31,889.00 32,102.00 31,898.60 31,364.75
Current Assets, Loans & Advances
Inventories 329 306 298.34 253.14
Sundry Debtors 1,932.00 1,538.00 1,738.63 1,482.22
Cash and Bank 178 3,813.00 82.18 535.15
Loans and Advances 8,922.00 9,613.00 17,886.79 23,272.50
Total Current Assets 11,361.00 15,270.00 20,005.94 25,543.01
Less : Current Liabilities and Provisions
Current Liabilities 10,363.00 22,187.00 5,836.53 5,781.49
Provisions 2,572.00 2,784.00 3,386.84 3,583.97
Total Current Liabilities 12,935.00 24,971.00 9,223.37 9,365.46
Net Current Assets -1,574.00 -9,701.00 10,782.57 16,177.55
Miscellaneous Expenses not written off 0 0 0 0
Deferred Tax Assets 0 0 0 0
Deferred Tax Liability 0 0 0 0
Net Deferred Tax 0 0 0 0
Other Assets 4,606.00 3,903.00 0 0
Total Assets 73,070.00 65,033.00 74,977.17 82,593.93
Current Ratio..............................in Crore.................................
Year Current AssetsCurrent
Liabilities Current Ratio2009 25543.01 9365.46 2.72
2010 20005.94 9223.37 2.16
2011 15270 24971 0.61
2012 11361 12935 0.87
0.870.61
2.162.72
2009
201120102012
• CURRENT RATIO
Quick Ratio/Liquid Ratio/Acid Test Ratio ...........................In Crore............................
YEARCURRENT
ASSETS STOCKCURRENT
LIABILITIES QUICK RATIO2009 25543.01 253.14 9365.46 2.70
2010 20005.94 298.34 9223.46 2.13
2011 15270 306 24971 0.59
2012 11361 329 12935 0.85
2009 2010 2011 2012
QUICK RATIO
0
0.5
1
1.5
2
2.5
3 2.702.13
0.590.85
DEBTOR TURNOVER RATIO......................................In Crore......................................
YEAR NET SALE DEBTOR DEBTOR TURNOVER RATIO
2009 13610.58 1482.22 9.18
2010 12290.61 1738.63 7.06
2011 12130 1538 7.88
2012 11110 1932 5.75
2009 2010 2011 2012
D.T.R 9.18
7.067.88
5.75
FIXED ASSET TURNOVER RATIO..................................in crore.....................................
YEAR NET SALENET BLOCK FIXED
ASSETSFIXED ASSET
TURNOVER RATIO
2009 31407.77 11110 2.82
2010 30612.48 12130 2.52
2011 28841 12290 2.34
2012 37384 13610.58 2.74
2009 2010 2011 2012
FATR
Profitability Ratios..............................In Crore.................................
11 of 15
0
10
20
30
40
50
2009 2010 2011 2012
YEAR GROSS PROFIT SALE PRFITABILITY RATIO %
2009 6748.58 13610.58 49.58
2010 2130.71 12290.61 17.33
2011 735 12130 6.05
2012 1896 11110 17.06
PR
TABLE: FINANCIAL RATIO
Key Financial Ratio Mar’09 Mar’10 Mar’11 Mar’12
Current Ratio 2.72 2.16 0.61 0.87
Quick Ratio 2.70 2.13 0.59 0.85
Debtor Turnover Ratio 9.18 7.06 7.88 5.75
Fixed Asset Turnover Ratio 2.82 2.52 2.34 2.74
Profitability Ratio 49.58 17.33 6.05 17.06
Welcome to MoneyGAME
Stock Market
Company Current Price
Change (%Chg)
TODAYLow / High
52 WEEKLow / High Volume EPS PE
Reliance Communications Ltd. 51.05 1.20
(2.40%)50.45 / 51.75
46.60 / 109.70 1696097 67.54 0.76
Bharti Airtel Ltd. 255.101.45
(0.57%)253.70 / 259.60
238.50 / 412.25
534027 16.91 15.09
Idea Cellular Ltd. 84.001.45
(1.75%)81.50 / 85.50
71.20 / 103.10
465370 48.23 1.74
Mahanagar Telephone Nigam Ltd.
41.351.95
(4.94%)38.95 / 41.75 20.70 / 45.25 1546844 -0.63 -65.23
Nettlinx Ltd. 8.610.41
(5.00%)8.00 / 8.61 4.63 / 12.62 2097 -17.55 -0.49
Nu Tek India Ltd. 0.87-0.04 (-4.39%)
0.87 / 0.87 0.51 / 3.89 151264 6.13 0.14
OnMobile Global Ltd. 39.10-0.60 (-1.51%)
38.75 / 40.65 28.75 / 84.00 514757 9.17 4.26
Quadrant Televentures Ltd.
3.12-0.09 (-2.80%)
3.06 / 3.35 2.75 / 5.48 4101 -1.07 -2.93
Spice Communications Ltd.
[Merged]56.75
-0.85 (-1.47%)
56.15 / 58.10 0.00 / 0.00 88191 -3.84 -14.78
Tata Communications Ltd.
236.95-0.15 (-0.06%)
236.00 / 242.00
176.30 / 266.35
12255 39.41 6.01
Tata Teleservices (Maharashtra) Ltd.
10.910.09
(0.83%)10.83 / 11.08 10.50 / 18.95 311483 -4.00 -2.73
BSE (SEP, 14)
NSE
Company Current Price
Change (%Chg)
TODAYLow / High
52 WEEKLow / High Volume EPS PE
Reliance Communications
Ltd.51.15 1.30
(2.60%)50.40 / 51.75
46.55 / 109.70 7900946 7900946 0.76
Bharti Airtel Ltd. 255.10 1.55 (0.61%)
253.60 / 259.85
238.45 / 412.00
6,840,936.00 16.91 15.09
Idea Cellular Ltd. 84.00 1.15 (1.38%)
81.55 / 85.20
65.60 / 103.15
4,882,955.00 48.23 1.74
Mahanagar Telephone Nigam
Ltd.41.30 1.90
(4.82%)38.95 / 41.80
18.75 / 45.40
7,096,260.00 -0.63 -65.23
Nu Tek India Ltd. 0.85 -0.05 (-5.55%) 0.85 / 0.90 0.50 / 3.90 638,176.0
0 5.99 0.14
OnMobile Global Ltd. 39.10 -0.60 (-
1.51%)38.65 / 40.70
28.85 / 84.15
1,931,877.00 9.17 4.26
Spice Communications
Ltd. [Merged]56.95 0.00
(0.00%)56.55 / 58.00 0.00 / 0.00 113,959.0
0 -3.85 -14.78
Tata Communications
Ltd.237.00 -0.55 (-
0.23%)236.00 / 241.35
166.65 / 265.95 62,401.00 39.42 6.01
Tata Teleservices (Maharashtra) Ltd. 10.90 0.10
(0.92%)10.85 / 11.15
10.45 / 19.05
598,654.00 -4.00 -2.73
(SEP, 14)
Meet the OBLIGATIONS
Reliance Communications has a strong financial strength as its Current Ratio and Quick Ratio in 2009 & 2010 was the highest of ever which made company capable to discharge or meet its obligations effectively for its next years. But in 2011 and 2012 Reliance Communication has a low financial strength as its Current ratio and Quick ratio..
So, the overall liquidity of the company is good and it meets its current or futureobligations or liabilities effectively.
Share of Reliance Communication is going down in comparison of other competitors .
Formula of Price Earning Ratio is:
Current Market Price of Share Earning Per Share
Conclusion