Visit a company & interpret

the ratio used by the

company to analyses the
balance sheet with conclusion
Although survey report is considered the
result of an individual effort & the credit
goes to the person conducting the analysis.
We are always be great full to our faculty
guide Mr.AMIT SINGH for the invaluable
cooperation, constant encouragement &
support. The timely completion of this
project is mainly due to the interest &
persuasion of the group members.

Dhirubhai Ambani charted out the mission for

Reliance Infocomm in late 1999.Reliance
Communications (formerly Reliance Infocomm), is
one of the most prominent companies of India, and it
is also one of the constituents of Nifty. It is one of
India's largest providers of integrated
communications services. With more than 48 million
customers, the company serves consumers and
enterprises with a digital network supporting voice,
data, and video. Its fixed and wireless
communications services include domestic and
international voice, Internet access, messaging, and
videoconferencing. It also provides wholesale
capacity, infrastructure, and managed enterprise
services through its Reliance Global COM division.
Reliance Communications along with Reliance
Telecom and Flag Telecom is part of Reliance
Communications Ventures (RCoVL). According to
National Stock Exchange data, Anil Ambani controls
66.75 per cent of the company, which accounts for
more than 136 crore shares of the company.

Source of Data

• Primary Data:
Balance sheet of the company.
 9thQuarterly report of Reliance Communications.

• Secondary Data:

Secondary data was collected through various

publications of newspapers, magazine & websites of
Reliance Infocomm.
Balance Sheet
As on 31-Mar-08 31-Mar-07 31-Dec-05

Assets Rs. mn %BT Rs mn %BT Rs mn %BT

Gross Block 192021.10 35.32 182859.10 41.87 1980.88 1.29

Net Block 148834.50 27.38 159414.80 36.51 1662.36 1.08

Capital WIP 71175.60 13.09 21856.00 5.00 0.00 0.00

Investments 138441.30 25.47 54344.20 12.44 120741.01 78.41

Inventory 2012.20 0.37 985.10 0.23 0.00 0.00

Receivables 10932.10 2.01 8021.10 1.84 0.00 0.00

Other Current Assets 172208.70 31.68 192064.30 43.98 31589.57 20.51

Balance Sheet Total(BT) 543604.40 100.00 436685.50 100.00 153992.95 100.00

Liabilities Rs mn %BT Rs mn %BT Rs mn %BT

Equity Share Capital 10320.10 1.90 10223.10 2.34 6116.15 3.97

Reserves 218038.40 40.11 173462.60 39.72 147834.27 96.00

Total Debt 202864.30 37.32 145678.40 33.36 0.00 0.00

Creditors and Acceptances 47462.50 8.73 25244.30 5.78 10.51 0.01

Other current liabilities/provision. 64919.10 11.94 82077.10 18.80 32.02 0.02

Balance Sheet Total(BT) 543604.40 100.00 436685.50 100.00 153992.95 100.00

Current Ratio (2008) & (2007) .

=current assets/current liabilities

= 18513/533284.3
= 0.34
 = 2010705/426462.4
= .47

• The Companies Act prescribes a few provisions to prepare and

present the financial statements of the joint stock companies. It also
lays down provisions regarding the books to be maintained by the
company, requirements regarding annual accounts and the form and
content of balance sheet and profit and loss account.
• The appropriations made from the profits in respect of dividends and
transfer to reserves etc., are shown in the profit and loss appropriation
account.
• Section 209 of the Companies Act specifies the books of accounts to
be maintained by a company.
• Part II of Schedule VI of the Companies Act 1956 (Appendix II) does
not prescribe any format for the profit and loss account but only
outlines the information to be included.
• Part I of Schedule VI of the Companies Act specifies both the form
and content of the balance sheet of a company