Financial analysis of Reliance industries and ONGC

FINANCIAL PLANNING

AND CONTROL

Submitted by:

- Akhil Goyal

- Ankur Bhargava

- Dhawal Mehta

- Rajesh Kumar

- Shivangi Choudhary

1

Contents RELIANCE INDUSTRIES LIMITED .................................................................................................................... 2

Overview ................................................................................................................................................... 2

Revenue Composition: .............................................................................................................................. 3

Cost Composition: ..................................................................................................................................... 3

Relationship analysis: ................................................................................................................................ 3

Management vs. Shareholders: ............................................................................................................ 3

Firm and Financial Markets: .................................................................................................................. 4

Firm and Society:................................................................................................................................... 4

Employee retention rate: ...................................................................................................................... 4

Risk and Return: ........................................................................................................................................ 4

Market risk: ........................................................................................................................................... 4

Business risk: ......................................................................................................................................... 4

Return: .................................................................................................................................................. 5

Dividend Policy .......................................................................................................................................... 5

Cost of Capital and WACC ......................................................................................................................... 5

OIL AND NATURAL GAS CORPORATION ........................................................................................................ 6

Overview ................................................................................................................................................... 6

Cost Composition ...................................................................................................................................... 6

Revenue Composition ............................................................................................................................... 6

Relationship Analysis: ............................................................................................................................... 7

Firm and Shareholders .......................................................................................................................... 7

Firm and Financial Markets ................................................................................................................... 7

Firm and Share holder ........................................................................................................................... 7

Risk & Return ............................................................................................................................................ 8

Business Risk: ........................................................................................................................................ 8

Return ................................................................................................................................................... 8

Cost of Capital and WACC ......................................................................................................................... 8

Dividend Policy .......................................................................................................................................... 9

Comparative Analysis .............................................................................................................................. 10

2

RELIANCE INDUSTRIES LIMITED

Overview The company was co-founded by Dhirubai Ambani and his cousin Champaklal Damani in 1960s as

Reliance Commercial Corporation. In 1965, the partnership ended and Dhirubhai continued

the polyester business of the firm. In 1966, Reliance Textiles Industries Pvt Ltd was incorporated in

Maharashtra. The company held its Initial public offering (IPO) in 1977.

In 1985, the name of the company was changed from Reliance Textiles Industries Ltd. to Reliance

Industries Ltd. In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest

companies in terms of all major financial parameters. In 2008-09, Reliance Petroleum was merged with

Reliance Industries. In 2006, Reliance entered the organised retail market in India with the launch of its

retail store format under the brand name of 'Reliance Fresh'.

Currently, Mukesh D Ambani is the chairman and managing director of Reliance Industries Limited. With

a market capitalization 283260.25 crore. Reliance Industries is ranked 99th based on sales and 130th

based on profits among the fortune 500 companies.

Reliance is currently operating in the areas exploration and production, refining, petrochemicals,

polymers, textiles, retail.

Market Structure:

3

Revenue Composition:

Cost Composition:

Cost/Year 2010-11 2011-12 2012-13

Direct material 94.46% 95.46% 94.85%

Direct labor 1.28% 0.99% 1.04%

Manufacturing overhead 4.26% 3.55% 4.11%

Here the direct material mainly consists of crude oil and some other accessories materials. As Crude oil

production is very low in India around 90% of the crude oil demand is imported from other countries.

Relationship analysis:

Management vs. Shareholders: Reliance industries has consistently focused on increasing shareholder’s value. As it is evident despite of

the economic downturn, oil price fluctuations and the foreign currency risk they have been able to

increase the earnings per share.

To create the shareholders’ value RIL merged Reliance Petroleum ltd. with Reliance industries ltd. and

thus were able to reduce the operating costs by achieving economies of scale. The earnings volatility of

RPL shareholder’s value has been thus eliminated. They have been allotted 1 share of RIL for 16 shares

of RPL. Thus the shareholders of both the companies were benefitted.

4

Firm and Financial Markets: Over 100 banks and financial institutions have commitments to RIL, reflecting the strength of its balance

sheet credit profile and earning capability. RIL undertakes liability management to reduce cost of debt

and diversify its liability mix. RIL’s financial discipline and fiscal prudence is reflected in the strong credit

ratings ascribed by rating agencies. Moody’s has rated RIL’s international debt at investment grade Baa2

(stable). S&P has rated RIL’s international debt at BBB which is notch above India’s sovereign rating.

RIL’s long term debt is rated AAA by CRISIL.

Firm and Society: RIL has received many awards in the field of health, safety, quality and environment. And also Reliance

foundation is wholly engaged in the welfare of the society. RIL has also focused on energy and water

conservation efficiency.

Employee retention rate: RIL has a vision of being the “Employer of choice” in its operating geographies. With the continuous skill

development and compensation as per industry standard RIL has maintained a good employee retention

rate. RIL has employee strength of around 26000 as of year 2012-13.

Risk and Return:

Market risk:Market risk:Market risk:Market risk:

Supply and demand risk:

Petrochemical sector is subjected to fluctuations in supply and demand within the regional markets,

with a consequent effect on prices and profitability.

Foreign currency risk:

RIL exports which constitute major part of the turnover and earned in foreign currency, primarily US

dollar. In addition earnings in local currency are also based upon import parity prices. Most of the loans

raised by RIL is from foreign institutions and thus this also possess foreign exchange risk. Thus the

company’s business is exposed to foreign exchange fluctuations and interest rate risk.

BBBBusiness risk:usiness risk:usiness risk:usiness risk:

0

10000

20000

30000

40000

50000

2008-09 2009-10 2010-11 2011-12 2012-13

5

As we can observe that PBDIT of the form has increased through last 5 years consistently, we can

conclude that it possesses very low business risk.

Return: Return: Return: Return:

Year 2008-09 2009-10 2010-11 2011-12 2012-13

WACC 10.82% 10.64% 10.02% 10.31% 13.44%

ROCE 20.30% 13.90% 13.20% 11.60% 11.20%

We can observe here that return on capital employed have been decreasing continuously over the

years. And when we compare the ROCE against the weighted average cost of capital it is less which

signifies that the resources being put in the business are not being utilized effectively.

Dividend Policy

RIL’s dividend is also decided in Annual general meeting. How much dividend has to be paid is

dependent on the future plans of the company.

2012-13 2011-12 2010-11

Dividends(in crores) 2924 2772 2431

Dividend per share 9 8.5 7.5

Dividend payout ratio .14 .13 .12

Dividend yield .01 .008 .007

PAT(in crores Rs.) 21003 20040 20286

RIL’s Dividend payout is constant but on the lower side which shows that they have a consistent

dividend policy. RIL is increasing their net worth year by year and due to this they claim themselves to

be Zero debt company. RIL is venturing into new projects which could expand their business like

investing in unconventional rich resources in North America.

RIL’s dividend yield is increasing due to slight increase in DPS and major decrement in MPS.RIL’s

dividend has been increasing which is in-line with their increment in PAT. It follows PAT.

There is no sharp increase/decrease in dividend payout which doesn’t create uncertainty in the market.

RIL has been able to maintain high dividends because oil and gas industry is now in a mature stage.

Moreover RIL has been investing when global economy is facing tough times.

Cost of Capital and WACC 2013-12 2012-11 2011-10

Debt 23 % 26 % 31 %

Equity 77 % 74 % 69 %

Debt to Equity 0.3 0.35 0.44

Cost of Equity (Ke) 14.84 % 14.4 % 13.6 %

6

Cost of Debt (Kd) 2.99 % 2.73 % 2.74 %

WACC 12.11 % 11.38 % 10.28%

OIL AND NATURAL GAS CORPORATION

Overview Oil and Natural Gas Corporation Limited (ONGC) is an Indian multinational oil and gas company

headquartered in Dehradun, India. It is a Public Sector Undertaking (PSU) of the Government of

India, under the administrative control of the Ministry of Petroleum and Natural Gas (MoP &

NG). It is India's largest oil and gas exploration and production company. It produces around

69% of India's crude oil (equivalent to around 30% of the country's total demand) and around

62% of its natural gas. In a government survey for FY 2011-12, it was ranked as the largest profit

making PSU in India. ONGC has been ranked 357th in the Fortune Global 500 list of the world's

biggest corporations for the year 2012.It is ranked 22nd among the Top 250 Global Energy

Companies. Government currently holds 69.23% equity shares.

Cost Composition

Cost/Year 2010-11 2011-12 2012-13

Direct material 1.02% 1.6% 0.8%

Direct labor 20.4% 36.1% 42.5%

Manufacturing overhead 78.58% 62.3% 56.7%

Revenue Composition

7

Revenue of ONGC in 12-13 in pie chart form.

Relationship Analysis:

Firm and Shareholders

The company has consistently maintained a good EPS which gives value to shareholder’s

money.

Firm and Financial Markets ONGC has MOU with Ministry of Petroleum & Natural Gas for its evaluation. ONGC has been

getting good ratings for past few years which shows that company has been performing well in

the market.

Firm and Share holder

Company has already paid an interim dividend of 9 Rs. The Board of Directors have

recommended a final dividend of 0.5 per share making the aggregate dividend of Rs. 9.5 per

share. The total dividend payout will be Rs. 8127 Crore, besides Rs. 1301 Crore payable as tax

on dividend.

0 5 10 15 20 25 30 35

2012-13

2011-12

2010-11

2009-10

2008-09

EPS per year

EPS

8

Risk & Return

It is a business characterized by inherent uncertainties, geological surprises and complexities

which makes it highly risky business. The challenges demands the company to be accurate,

cost-effective and precise.

Globally exploration and development of complex and frontier plays is challenging and requires

capital and technology intensive engagement. Uncertainties in the global oil market, which has

become its hallmark and a depreciating Rupee are valid concerns for your

Business Risk:

As we can see that PBDIT is stable and doesn’t have much deviation, so we can infer that

business risk is low.

Return

Year 2012-13 2011-12 2010-11

WACC 14.43% 14.35% 14.11%

ROE 16.81% 22.24% 19.4%

We can see that ROE is more than weighted average cost of capital which means that resources

are effectively utilized by the company.

Cost of Capital and WACC

2012-13 2011-12 2010-11

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

2008-09 2009-10 2010-11 2011-12 2012-13

PBDIT in various years

PBDIT

9

COST OF

EQUITY

14.45% 14.36% 14.11%

WACC 14.45% 14.36 % 14.11 %

Dividend Policy

ONGC’s dividend are declared at Annual general meeting of the shareholders based on the

recommendations made by the board. It may recommend dividends or interim dividend, it is at their

discretion. Some of the factors which they consider are future capital expenditure plans, profits earned

during the financial year, cost of raising funds from alternate sources, cash flow position and applicable

taxes including tax on dividend.

2012-13 2011-12 2010-11

Dividends(In million rs) 81277 83416 74861

Dividend per share 9.5 9.75 8.75

Dividend payout ratio .39 .33 .39

Dividend yield .035 .033 .032

PAT 209256 251229 189240

In year 2010-11, ONGC went for stock split in ration of 1:2 due which its face value went to Rs. 5 from

Rs.10.

50000

55000

60000

65000

70000

75000

80000

85000

90000

95000

0

50000

100000

150000

200000

250000

300000

2010-11 2011-12 2012-13

Chart Title

PAT Column3 Dividend

10

As we can see that Company has been consistently paying Dividends which is in-line with its PAT. It

shows that depending upon their profit ONGC distributes its profit among its shareholders. It is one of

the highest dividend paying company in India. Dividends tends to follow earnings.

Dividend payout ratio is stable in case of ONGC, which shows that they have a solid Dividend Policy.

ONGC has dividend payout ratio more than .3 which shows that their dividend is well supported by their

earnings.

Dividend yield is also constant which shows that they are stable company whose share price doesn’t

fluctuate much.

Decrease in PAT is mainly due to the following reason: - In 2012, ONGC received royalty from Vedanta

Group and Cairn Energy which they didn’t received in 2013.

Comparative Analysis

ONGC(in crores) RIL (in crores)

Risk Analysis 2012-13 2011-12 2010-11 2012-13 2011-12 2010-11

Business risk

Working Capital 13127.44 10886.46 6766.942 60665 63456 25016

Quick ratio 1.36 1.18 1.14 1.73 1.92 0.93

Leverage 1.43 1.52 1.52 1.77 1.78 1.88

Operating Margin 0.37 0.44 0.42 0.081 0.086 0.11

Operating leverage 2.24 1.88 2.2 2.07 2.23 11.77

Degree of OL -0.96 0.7

Financial risk

Debt Equity - - - 0.3 0.347 0.441

WACC 14.45% 14.35% 14.11% 12.11% 11.69% 11.10%

Financial leverage 1.46 1.33 1.46 1.39 1.41 1.36

Interest Burden 0.99 0.99 0.99 0.89 0.9 0.91

Market standing

ratios

Price Earnings ratio 11.03 9.979 12.26 11.45 16.02 16.67

Dividend pay-out

ratio 0.388 0.33 0.39 0.14 0.13 0.12

Dividend Yield 0.035 0.033 0.0322 0.01 0.008 0.007

ROCE 0.38 0.45 0.44 0.058 0.051 0.042

Tax Burden 0.68 0.74 0.68 0.8 0.77 0.8

Market risk ,Beta 0.687 0.677 0.649 0.732 0.737 0.728

11

Business risk:

Working Capital: As we compare the working capital of both ONGC and RIL both companies

have maintained a positive working capital throughout last 3 years. There is sharp increase in

working capital for RIL during the year 2010-11 to 2011-12 due to increase in inventories and

investments, cash balances. This means the creditors of RIL and ONGC are well secured.

Operating margin: ONGC has more operating margin as compare to Reliance Industries LTD. It

signifies that the Business risk of ONGC is comparatively lesser as it has more percentage of

revenue left in order to pay for its fixed cost such as interest for debt.

Operating leverage: Operating leverage for ONGC is not so volatile for last 3 years. There is a

decline of operating leverage from 2.2 to 1.82 during year 2011-12 from the previous year due

to increase in the operating and exploratory cost. During this year ONGC made 23 oil reservoir

discoveries in the NELP blocks and also the crude oil production was higher resulting in higher

variable costs. In case of RIL there is a sharp decline of operating leverage from 11.77 to 2.23 in

the year 2012 due to the amalgamation of RPL and RIL. The refinery business of RPL got mixed

with the business of RIL and thus there was huge increase in the variable cost due to the crude

oil consumption in the refinery business. The assets and liabilities of RPL got transferred to RIL.

Degree of OL: As the degree of leverage for ONGC is not much higher so it can be inferred that

the EBIT for ONGC is not so volatile with respect to sales.

Financial risk:

Debt Equity: ONGC has always been a cash surplus company for last 5 years and fully equity

financed company. ONGC has around 20000 crores of cash in its balance sheet. But due to the

subsidies provided to IOCL, HPCL and other government owned refinery companies, its cash

surplus is forecasted to be depleted in 2 years. Then ONGC won’t be able to be maintain its zero

debt status. In case of RIL they also have a very low debt to equity ratio this means there is very

low risk to the equity shareholders.

WACC: Both RIL and ONGC have been able to maintain a consistent cost of capital. The cost of

capital for ONGC is slightly higher as it is fully equity financed as compared to RIL which has a

mixture of debt and equity. Due to low fluctuations in beta have resulted in the stable cost of

equity.

Financial leverage: Financial leverage has an effect on the EPS of a company. In case of RIL we

can observe that RIL is moving towards zero debt company, there might be a reason to increase

their EPS by reducing debt.

12

Interest burden: Interest burden for both the companies are similar and since both are a very

low debt company there is no as such effect of interest on the profitability of the firm..

Tax burden: No much effect.

Beta: Both the companies with comparison to Nifty are relatively less volatile. When we

compare the companies with each other RIL is riskier. It might be because of the fact that it

imports Crude Oil as a major raw material. Import price fluctuations is a key factor in

determining the bottom-line of the company and is thus considered to be more volatile than

ONGC.

Operating Cycle and Cash Cycle Analysis:

Operating cycle (days) Cash cycle(days)

Year 2012-13 2012-11 2011-10 2012-13 2012-11 2011-10

ONGC 108.5 102.09 101.65 30.82 14.37 6.61

RIL 60.23 61.46 71.75 11.11 13.9 32.12

If we compare the operating and cash cycles of ONGC and RIL over last 3 years, we observe that

for ONGC the operating cycle and cash cycles both are increasing due to depletion of their oil

reserves. Another reason is their operating area which is mainly crude oil production which has

a lot of uncertainties and complexities i.e. the new methods like deep-water drilling, enhanced

oil recovery. Day by day their reserves are depleting and they have to enhance their methods

for further production. On the other hand RIL has been operating mainly in the area of refinery

business, so due to increase in energy demand and economies of scale enjoyed from the

Jamnagar refinery and huge exports they are able to reduce the operating cycle and cash cycle.

As we know that RIL has most of the downstream products which are paid and consumed so

their cash cycle is also of less period.

Nifty Date Close RIL Date Close ONGC Date Close

1-Apr-08 4739.55 4/1/2008 1307.43 4/1/2008 258.35

2-May-08 5228.2 5/2/2008 1200.82 5/2/2008 216.07

2-Jun-08 4739.6 6/2/2008 1046.62 6/2/2008 203.68

1-Jul-08 3896.75 7/1/2008 1089.55 7/1/2008 253.12

1-Aug-08 4413.55 8/18/2008 1068.38 8/18/2008 255.82

1-Sep-08 4348.65 9/1/2008 973.17 9/1/2008 258.89

1-Oct-08 3950.75 10/1/2008 685.38 10/1/2008 167.45

3-Nov-08 3043.85 11/3/2008 565.8 11/3/2008 173.84

1-Dec-08 2682.9 12/1/2008 615.12 12/1/2008 166.91

1-Jan-09 3033.45 1/1/2009 662.6 1/1/2009 164.55

2-Feb-09 2766.65 2/2/2009 632.53 2/2/2009 172.79

2-Mar-09 2674.6 3/2/2009 761.6 3/2/2009 194.93

1-Apr-09 3060.35 4/1/2009 901.35 4/1/2009 216.38

4-May-09 3654 5/1/2009 1138.75 5/1/2009 293.98

1-Jun-09 4529.9 6/1/2009 1011.67 6/1/2009 266.77

1-Jul-09 4340.9 7/1/2009 978.55 7/1/2009 291.12

3-Aug-09 4711.4 8/3/2009 1002.05 8/3/2009 296.3

1-Sep-09 4625.35 9/1/2009 1100.6 9/1/2009 292.83

1-Oct-09 5083.4 10/1/2009 965.62 10/1/2009 283.17

3-Nov-09 4563.9 11/2/2009 1062.8 11/2/2009 299.76

1-Dec-09 5122 12/1/2009 1089.4 12/1/2009 294.39

4-Jan-10 5232.2 1/1/2010 1046.55 1/1/2010 274.95

1-Feb-10 4899.7 2/1/2010 978 2/1/2010 279.26

2-Mar-10 5017 3/2/2010 1074.65 3/2/2010 274.62

1-Apr-10 5290.5 4/1/2010 1032.5 4/1/2010 263.77

3-May-10 5222.75 5/3/2010 1045.05 5/3/2010 291.8

1-Jun-10 4970.2 6/1/2010 1086.9 6/1/2010 330.1

1-Jul-10 5251.4 7/1/2010 1009.6 7/1/2010 310.64

2-Aug-10 5431.65 8/2/2010 918.85 8/2/2010 334.69

1-Sep-10 5471.85 9/1/2010 986.35 9/1/2010 350.39

1-Oct-10 6143.4 10/1/2010 1095.8 10/1/2010 325.81

1-Nov-10 6117.55 11/1/2010 986.8 11/1/2010 312.05

1-Dec-10 5960.9 12/1/2010 1058.25 12/1/2010 323.35

3-Jan-11 6157.6 1/3/2011 919.25 1/3/2011 294.39

1-Feb-11 5417.2 2/1/2011 964.95 2/1/2011 270.65

1-Mar-11 5522.3 3/1/2011 1047.8 3/1/2011 290.1

1-Apr-11 5826.05 4/1/2011 981.95 4/1/2011 308.9

2-May-11 5701.3 5/2/2011 951.75 5/2/2011 281.6

1-Jun-11 5592 6/1/2011 897.6 6/1/2011 273.95

1-Jul-11 5627.2 7/1/2011 827.7 7/1/2011 268.65

1-Aug-11 5516.8 8/1/2011 783 8/1/2011 263

2-Sep-11 5040 9/2/2011 808.1 9/2/2011 265.7

3-Oct-11 4849.5 10/3/2011 877.75 10/3/2011 278.2

1-Nov-11 5257.95 11/1/2011 778.8 11/1/2011 265.8

1-Dec-11 4936.85 12/1/2011 692.9 12/1/2011 256.95

2-Jan-12 4636.75 1/2/2012 815.45 1/2/2012 275.85

1-Feb-12 5235.7 2/1/2012 818.65 2/1/2012 293.35

1-Mar-12 5339.75 3/1/2012 748.25 3/1/2012 267.3

2-Apr-12 5317.9 4/2/2012 745.2 4/2/2012 269.7

2-May-12 5239.15 5/1/2012 706 5/1/2012 253.7

1-Jun-12 4841.6 6/1/2012 737.45 6/1/2012 284.7

2-Jul-12 5278.6 7/2/2012 742.85 7/2/2012 285.8

1-Aug-12 5240.5 8/1/2012 771.95 8/1/2012 276.15

3-Sep-12 5253.75 9/3/2012 836.7 9/3/2012 280.4

1-Oct-12 5718.8 10/1/2012 805.25 10/1/2012 268.3

1-Nov-12 5645.05 11/1/2012 793.9 11/1/2012 264.9

3-Dec-12 5870.95 12/3/2012 839.1 12/3/2012 267.35

1-Jan-13 5950.85 1/1/2013 886.55 1/1/2013 339.65

1-Feb-13 5998.9 2/1/2013 814.65 2/1/2013 313.35

1-Mar-13 5719.7 3/1/2013 773.7 3/1/2013 311.55

Rm-Rf 8.80% 8.80%

Rf 8.40% 8.40%

Beta 0.732 0.687

Beta =

Variance of market

Covariance of stock with market

2012-2013

ANNEXURE 1 (1 of 3)


2-Apr-07 3633.6 4/2/2007 780.05 4/2/2007 227.98

3-May-07 4150.85 5/1/2007 880.1 5/1/2007 228.65

1-Jun-07 4297.05 6/1/2007 850.15 6/1/2007 225.54

2-Jul-07 4313.75 7/2/2007 946.15 7/2/2007 228.5

1-Aug-07 4345.85 8/1/2007 979.75 8/1/2007 214.39

3-Sep-07 4474.75 9/3/2007 1148.1 9/3/2007 239.48

1-Oct-07 5068.95 10/1/2007 1391.28 10/1/2007 311.98

1-Nov-07 5866.45 11/1/2007 1425.38 11/1/2007 292.69

1-Dec-07 5913.45 12/3/2007 1440.53 12/3/2007 309.12

1-Jan-08 6144.35 1/1/2008 1239.75 1/1/2008 247.1

1-Feb-08 5317.25 2/1/2008 1229.12 2/1/2008 253.09

3-Mar-08 4953 3/3/2008 1132.25 3/3/2008 245.34

1-Apr-08 4739.55 4/1/2008 1307.43 4/1/2008 258.35

2-May-08 5228.2 5/2/2008 1200.82 5/2/2008 216.07

2-Jun-08 4739.6 6/2/2008 1046.62 6/2/2008 203.68

1-Jul-08 3896.75 7/1/2008 1089.55 7/1/2008 253.12

1-Aug-08 4413.55 8/18/2008 1068.38 8/18/2008 255.82

1-Sep-08 4348.65 9/1/2008 973.17 9/1/2008 258.89

1-Oct-08 3950.75 10/1/2008 685.38 10/1/2008 167.45

3-Nov-08 3043.85 11/3/2008 565.8 11/3/2008 173.84

1-Dec-08 2682.9 12/1/2008 615.12 12/1/2008 166.91

1-Jan-09 3033.45 1/1/2009 662.6 1/1/2009 164.55

2-Feb-09 2766.65 2/2/2009 632.53 2/2/2009 172.79

2-Mar-09 2674.6 3/2/2009 761.6 3/2/2009 194.93

1-Apr-09 3060.35 4/1/2009 901.35 4/1/2009 216.38

4-May-09 3654 5/1/2009 1138.75 5/1/2009 293.98

1-Jun-09 4529.9 6/1/2009 1011.67 6/1/2009 266.77

1-Jul-09 4340.9 7/1/2009 978.55 7/1/2009 291.12

3-Aug-09 4711.4 8/3/2009 1002.05 8/3/2009 296.3

1-Sep-09 4625.35 9/1/2009 1100.6 9/1/2009 292.83

1-Oct-09 5083.4 10/1/2009 965.62 10/1/2009 283.17

3-Nov-09 4563.9 11/2/2009 1062.8 11/2/2009 299.76

1-Dec-09 5122 12/1/2009 1089.4 12/1/2009 294.39

4-Jan-10 5232.2 1/1/2010 1046.55 1/1/2010 274.95

1-Feb-10 4899.7 2/1/2010 978 2/1/2010 279.26

2-Mar-10 5017 3/2/2010 1074.65 3/2/2010 274.62

1-Apr-10 5290.5 4/1/2010 1032.5 4/1/2010 263.77

3-May-10 5222.75 5/3/2010 1045.05 5/3/2010 291.8

1-Jun-10 4970.2 6/1/2010 1086.9 6/1/2010 330.1

1-Jul-10 5251.4 7/1/2010 1009.6 7/1/2010 310.64

2-Aug-10 5431.65 8/2/2010 918.85 8/2/2010 334.69

1-Sep-10 5471.85 9/1/2010 986.35 9/1/2010 350.39

1-Oct-10 6143.4 10/1/2010 1095.8 10/1/2010 325.81

1-Nov-10 6117.55 11/1/2010 986.8 11/1/2010 312.05

1-Dec-10 5960.9 12/1/2010 1058.25 12/1/2010 323.35

3-Jan-11 6157.6 1/3/2011 919.25 1/3/2011 294.39

1-Feb-11 5417.2 2/1/2011 964.95 2/1/2011 270.65

1-Mar-11 5522.3 3/1/2011 1047.8 3/1/2011 290.1

1-Apr-11 5826.05 4/1/2011 981.95 4/1/2011 308.9

2-May-11 5701.3 5/2/2011 951.75 5/2/2011 281.6

1-Jun-11 5592 6/1/2011 897.6 6/1/2011 273.95

1-Jul-11 5627.2 7/1/2011 827.7 7/1/2011 268.65

1-Aug-11 5516.8 8/1/2011 783 8/1/2011 263

2-Sep-11 5040 9/2/2011 808.1 9/2/2011 265.7

3-Oct-11 4849.5 10/3/2011 877.75 10/3/2011 278.2

1-Nov-11 5257.95 11/1/2011 778.8 11/1/2011 265.8

1-Dec-11 4936.85 12/1/2011 692.9 12/1/2011 256.95

2-Jan-12 4636.75 1/2/2012 815.45 1/2/2012 275.85

1-Feb-12 5235.7 2/1/2012 818.65 2/1/2012 293.35

1-Mar-12 5339.75 3/1/2012 748.25 3/1/2012 267.3

Rm-Rf 8.80% 8.80%

Rf 7.90% 7.90%

Beta 0.737 0.677

Beta = Covariance of stock with market

Variance of market

2011-2012

ANNEXURE 1 (2 of 3)


3-Apr-06 3473.3 4/3/2006 503.9 4/3/2006 323.66

2-May-06 3605.45 5/2/2006 476.62 5/2/2006 278.16

1-Jun-06 2962.25 6/1/2006 529.38 6/1/2006 277.01

3-Jul-06 3150.95 7/3/2006 489.5 7/3/2006 293.94

1-Aug-06 3147.8 8/1/2006 558.8 8/1/2006 303.98

1-Sep-06 3435.45 9/1/2006 585.53 9/1/2006 292.51

3-Oct-06 3569.6 10/2/2006 613.1 10/2/2006 203.93

1-Nov-06 3767.05 11/1/2006 622.5 11/1/2006 215.49

1-Dec-06 3997.6 12/1/2006 635.17 12/1/2006 217.51

2-Jan-07 4007.4 1/1/2007 682.3 1/1/2007 225.85

1-Feb-07 4137.2 2/1/2007 677.3 2/1/2007 197.65

1-Mar-07 3811.2 3/1/2007 684.17 3/1/2007 219.54

2-Apr-07 3633.6 4/2/2007 780.05 4/2/2007 227.98

3-May-07 4150.85 5/1/2007 880.1 5/1/2007 228.65

1-Jun-07 4297.05 6/1/2007 850.15 6/1/2007 225.54

2-Jul-07 4313.75 7/2/2007 946.15 7/2/2007 228.5

1-Aug-07 4345.85 8/1/2007 979.75 8/1/2007 214.39

3-Sep-07 4474.75 9/3/2007 1148.1 9/3/2007 239.48

1-Oct-07 5068.95 10/1/2007 1391.28 10/1/2007 311.98

1-Nov-07 5866.45 11/1/2007 1425.38 11/1/2007 292.69

1-Dec-07 5913.45 12/3/2007 1440.53 12/3/2007 309.12

1-Jan-08 6144.35 1/1/2008 1239.75 1/1/2008 247.1

1-Feb-08 5317.25 2/1/2008 1229.12 2/1/2008 253.09

3-Mar-08 4953 3/3/2008 1132.25 3/3/2008 245.34

1-Apr-08 4739.55 4/1/2008 1307.43 4/1/2008 258.35

2-May-08 5228.2 5/2/2008 1200.82 5/2/2008 216.07

2-Jun-08 4739.6 6/2/2008 1046.62 6/2/2008 203.68

1-Jul-08 3896.75 7/1/2008 1089.55 7/1/2008 253.12

1-Aug-08 4413.55 8/18/2008 1068.38 8/18/2008 255.82

1-Sep-08 4348.65 9/1/2008 973.17 9/1/2008 258.89

1-Oct-08 3950.75 10/1/2008 685.38 10/1/2008 167.45

3-Nov-08 3043.85 11/3/2008 565.8 11/3/2008 173.84

1-Dec-08 2682.9 12/1/2008 615.12 12/1/2008 166.91

1-Jan-09 3033.45 1/1/2009 662.6 1/1/2009 164.55

2-Feb-09 2766.65 2/2/2009 632.53 2/2/2009 172.79

2-Mar-09 2674.6 3/2/2009 761.6 3/2/2009 194.93

1-Apr-09 3060.35 4/1/2009 901.35 4/1/2009 216.38

4-May-09 3654 5/1/2009 1138.75 5/1/2009 293.98

1-Jun-09 4529.9 6/1/2009 1011.67 6/1/2009 266.77

1-Jul-09 4340.9 7/1/2009 978.55 7/1/2009 291.12

3-Aug-09 4711.4 8/3/2009 1002.05 8/3/2009 296.3

1-Sep-09 4625.35 9/1/2009 1100.6 9/1/2009 292.83

1-Oct-09 5083.4 10/1/2009 965.62 10/1/2009 283.17

3-Nov-09 4563.9 11/2/2009 1062.8 11/2/2009 299.76

1-Dec-09 5122 12/1/2009 1089.4 12/1/2009 294.39

4-Jan-10 5232.2 1/1/2010 1046.55 1/1/2010 274.95

1-Feb-10 4899.7 2/1/2010 978 2/1/2010 279.26

2-Mar-10 5017 3/2/2010 1074.65 3/2/2010 274.62

1-Apr-10 5290.5 4/1/2010 1032.5 4/1/2010 263.77

3-May-10 5222.75 5/3/2010 1045.05 5/3/2010 291.8

1-Jun-10 4970.2 6/1/2010 1086.9 6/1/2010 330.1

1-Jul-10 5251.4 7/1/2010 1009.6 7/1/2010 310.64

2-Aug-10 5431.65 8/2/2010 918.85 8/2/2010 334.69

1-Sep-10 5471.85 9/1/2010 986.35 9/1/2010 350.39

1-Oct-10 6143.4 10/1/2010 1095.8 10/1/2010 325.81

1-Nov-10 6117.55 11/1/2010 986.8 11/1/2010 312.05

1-Dec-10 5960.9 12/1/2010 1058.25 12/1/2010 323.35

3-Jan-11 6157.6 1/3/2011 919.25 1/3/2011 294.39

1-Feb-11 5417.2 2/1/2011 964.95 2/1/2011 270.65

1-Mar-11 5522.3 3/1/2011 1047.8 3/1/2011 290.1

Rm-Rf 8.80% 8.80%

Rf 7.20% 7.20%

Beta 0.728 0.649

Beta = Covariance of stock with market

Variance of market

2010-2011

ANNEXURE 1 (3 of 3)

Rm-Rf 8.80% Rm-Rf 8.80% Rm-Rf 8.80%

Rf 8.40% Rf 7.90% Rf 7.20%

Beta 0.732 Beta 0.737 Beta 0.728

2012-13 2011-12 2010-11

Ke 0.148416 0.143856 0.136064

WACC CALCULATION

RIL RIL

2012-13 2011-12

Equity Equity

Share Capital 3229 Share Capital 3271

Reserves and Surplus 176766 Reserves and Surplus 162825

179995 166096

D/E Ratio 0.299658324 D/E Ratio 0.347347

Debt Debt 0.230567002 Debt Debt 0.257801

Non Convertible Debentures 1842 Equity 0.77 Non Convertible Debentures 6024 Equity 0.74

Bonds 9066 Bonds 4564

Term Loans - from banks 31951 Term Loans - from banks 37269

Foreign Currency Loan 10978 Foreign Currency Loan 9736

Rupee Loans 100 Rupee Loans 100

Total Debt 53937 Interest Paid 2152 Total Debt 57693 Interest Paid 1966

Tax 24.97% Tax 20.00%

Kd 2.99% Kd 2.73%

WACC 12.11% WACC 11.38%

RIL

2010-11

Equity

Share Capital 3273.37

Reserves and Surplus 148266.95

151540.32

D/E Ratio 0.44091975

Debt Debt 0.305998825

Non Convertible Debentures 10007.82 Equity 0.69

Bonds

Term Loans - from banks 45069.3

short term 11740

short term

Total Debt 66817.12 Interest Paid 2327.62

Tax 21.30%

Kd 2.74%

WACC 10.28%

ANNEXURE 2

ONGC 2012-13(values in Millions) ONGC 2011-12(values in Millions)

Cpaital Stucture Cpaital Stucture

d/e 0.009141 d/e 0.004975286

Debt 1% Debt 0.004950655

Equity 99% Equity 0.995049345

Cost of Equity Cost of Equity

Beta 0.687 Beta 0.677

Rm-Rf (Market Risk premium) 8.80% Rm-Rf (Market Risk premium) 0.088

Rf (Risk Free return) 8.40% Rf (Risk Free return) 0.084

Ke 14.45% Ke 0.143576

WACC 14.45% WACC 14.36%

ONGC 2010-11(values in Millions)

Cpaital Stucture

d/e 0.005974

Debt 0.005938

Equity 0.994062

Cost of Equity

Beta 0.649

Rm-Rf (Market Risk premium) 0.088

Rf (Risk Free return) 0.084

Ke 0.141112

WACC 14.11%

ANNEXURE 3

Ratios sheet All Figures in Million Rupees

2012-13 2011-12 2010-11

Equity and Liabilities

Share Holders' Funds

Share Capital 42777.6 42777.6 42777.6

Reserves and Surplus 1201754.64 1086789.71 932266.72

Total Owner's Equity 1244532.24 1129567.31 975044.32

Non Current Liabilities

Deferred Tax Liability(Net) 128879.81 111978.68 99503.94

Other Long Term Liabilities 11241.67 5619.93 5824.62

Long-Term Provision 221874.45 213130.6 208235.09

Total Non Current(Long Term) 361995.93 330729.21 313563.65

Current Liabilities

Short-term Borrowings 0 45000 0

Trade Payables 53410.06 47599.33 52252.96

Other Current Liabilities 112226.56 141954.28 130055.33

Short-term Provisions 9101.88 22425.93 9257.83

Total Current Liability 174738.5 256979.54 191566.12

Total Liability 536734.43 587708.75 505129.77

Total 1781266.67 1717276.06 1480174.09

Assets

Non-Current assests

Fixed assests

Tangible assets 274036.8 215678.15 184816.68

Producing properties 524407.11 463768.28 435756.57

Intangible assests 797.95 1123.28 1578.77

Capital work in progress 144153.69 182980.56 139769.02

Exploratory/Development Wells in Progress 104758.75 85812.34 77472.12

Toal Fixed Asset 1048154.3 949362.61 839393.16

Non-current Investment 91730.54 43643.37 51827.45

Lont-term loans and advances 219984.17 254498.08 239938.54

Deposit under Site Restoration Fund Scheme 101331.21 91825.72 81155.06

Other non-current assets 14053.53 12102.14 8624.34

Total Non Current 1475253.75 1351431.92 1220938.55

Current Asset

Current Investment 0 8519.07 0.5

Inventories 57043.94 51654.35 41189.84

Trade Receivables 68637.21 61948.16 39946.79

Cash and Cash Equivalent 132185.86 201245.65 144810.89

Short-term loans and advances 38765.53 31237.09 26733.86

Other current assets 9380.38 11239.82 6553.66

Total Current asset 306012.92 365844.14 259235.54

Total 1781266.67 1717276.06 1480174.09

ANNEXURE - 4

Statement of Profit and Loss

PAT 209256.96 251229.22 189240.02 167676 161263

Dividend 81277 83416 74861

Market price per share(in Rs) 269.85 293.05 271.11

Number of outstanding share 8555.49 8555.49 8555.49

Capital Employed 1017636 908848 796972

PBDIT 389455 410327 353182


Earnings per share 24.45879313 29.36467929 22.11913286

PBT 305443 335020 276164

PBIT 305720 335368 276415

Sales 825671 761257 661378 602026 639493

COGS 249073.80 218161.10 195340.10

Fixed Expenses 294952 232406 206931

Variable Expenses 356831 288540 243650

Total expenses 651783 520946 450581

2012-13 2011-12 2010-11

Solvency Ratios

Working Capital 131274.42 108864.60 67669.42

Current ratio 1.75 1.42 1.35

Quick ratio 1.36 1.18 1.14

FA/LTL(Long Term Liability) 2.90 2.87 2.68

Liability/Stock Holder's Equity 0.43 0.52 0.52

Market Standing Ratios

Price Earning ratio 11.03 9.98 12.26

Dividend Payout ratio 0.39 0.33 0.40

Dividend Yield on common stock 0.04 0.03 0.03

ROCE 0.38 0.45 0.44

ROI 5 Factor Model

Leverage 1.43 1.52 1.52

Turnover 0.46 0.44 0.45

Operating Margin 0.37 0.44 0.42

Interest Burden 1.00 1.00 1.00

Tax Burden 0.69 0.75 0.69

MultiPlication of above 0.17 0.22 0.19

PAT/Equity 0.17 0.22 0.19

Turn Over Ratios

Fixed Asset Turn Over Ratio 0.79 0.80 0.79

Total Asset Turn Over Ratio 0.46 0.44 0.45

Inventory Turnover Ratio 14.47 14.74 16.06

Risk Analysis

Operating Leverage 2.24 1.88 2.21

Financial Leverage 1.46 1.33 1.46

Combined Leverage 3.27 2.51 3.22

Degree of OL -0.96 0.71

Contribution Margin 468840.00 472717.00 417728.00

% change in EBIT -0.09 0.21

CAGR (PAT) 6.73%

CAGR (Sales) 6.60%

Ratios sheet RIL All Figures in Million Rupees

2012-13 2011-12 2010-11

Equity and Liabilities

Share Holders' Funds

Share Capital 3,229 3,271 3,273.37

Reserves and Surplus 176,766 162,825 148,266.95

Total Owner's Equity 179995 166096 151540.32

Non Current Liabilities

Deffered Sales Tax 15.22

Deferred Tax Liability(Net) 12,193 12,122 11,561.80

Other Long Term Liabilities 43,012 48,034 55077.12

Long-Term Provision

Total Non Current(Long Term) 55,205.00 60,156.00 66,654.14

Current Liabilities

Share application money pending allotment 25

Short-term Borrowings 11,511 10,593 12304.34

Trade Payables 45,787 40,324

Other Current Liabilities 21,640 13,713 49,657.12

Short-term Provisions 4,348 4,258 4,563.48

Total Current Liability 83311 68888 66524.94

Total Liability 138516 129044 133179.08

Total 318511 295140 284719.4

Assets

Non-Current assests

Fixed assests

Own Assets 92,917.27

Lease Assets 166.5

Intangible assests 49,622.70

Capital work in progress 12,819.56

Exploratory/Development Wells in Progress

Toal Fixed Asset 82,962 88001 155526.03

Non-current Investment 37,651.54

Lont-term loans and advances

Deposit under Site Restoration Fund Scheme

Other non-current assets

Total Non Current 174,535 162,796 193177.57

Current Asset

Current Investment 0

Inventories 42,729 35,955 29,825.38

Trade Receivables 17,441.94

Cash and Cash Equivalent 27,134.86

Short-term loans and advances 16,940.33

ANNEXURE - 5

Other current assets 199.32

Total Current asset 143,976 132,344 91541.83

Total 318511 295140 284719.4

Statement of Profit and Loss

PAT 21,003 20,040 20,286.30 16,235.67 15,309.32

Dividend 2,924 2,772 2,431

Market price per share(in Rs) 745.2 981.95 1032.5

Number of outstanding share 322.9 327.1 327.34

Capital Employed 235200 226252 218194.46

PBDIT 13783 11689 9307.04


Earnings per share 65.0449055 61.26566799 61.97374571

PBT 26,284 25,750 25,242

PBIT 29320 28417 27570 192,461.02 2,059.88

Sales 360,297 329,904 248170

COGS 319,926 288419 205900

Fixed Expenses 735,892 18493 20843.77

Variable Expenses 1,721,844 291460 15508.59

Total expenses 2,457,736 309953 36352.36

2012-13 2011-12 2010-11

Solvency Ratios

Working Capital 60665 63456 25016.89

Current ratio 1.72817515 1.92114737 1.376052801

Quick ratio 1.72817515 1.92114737 0.927718988

FA/LTL(Long Term Liability) 1.50279866 1.462879846 2.333328882

Liability/Stock Holder's Equity 0.76955471 0.776924188 0.878835943

Number of times Interest charge Earned

Profitability Ratios

Price Earning ratio 11.4567005 16.02773678 16.66028071

Dividend Payout ratio 0.13921821 0.138323353 0.119834568

Dividend Yield on common stock 0.01215168 0.008630249 0.00719283

ROCE 0.05860119 0.051663632 0.042654795

ROI 5 Factor Model

Leverage 1.77 1.78 1.88

Turnover 1.13 1.12 0.87

Operating Margin 0.08 0.09 0.11

Interest Burden 0.90 0.91 0.92

Tax Burden 0.80 0.78 0.80

MultiPlication of above 0.12 0.12 0.13

PAT/Equity 0.12 0.12 0.13

Turn Over Ratios

Fixed Asset Turn Over Ratio 4.34 3.75 1.60

Total Asset Turn Over Ratio 1.13 1.12 0.87

Inventory Turnover Ratio 8.43 9.18 8.32

Risk Analysis

Operating Leverage 2.07 2.27 11.77

Financial Leverage 1.40 1.42 1.36

Combined Leverage 2.89 3.22 16.00

Degree of OL 2.90 10.72

Contribution Margin 43573.00 44636.00 238956.20

% change in EBIT 3.18% 3.07%

CAGR (PAT) 8.23%

CAGR (Sales) 9.77%

Reliance Industries Ltd. (in crores)

Year 2012-13

Fixed costs

Employee benefits expense 3354

Depreciation and amortisation expense 9465

Finance costs 3036

Labor processing,production royalty and machinery charges 1569

Lease rent 0

TFC 17424

Variable costs

Cost of material consumed 306127

Purchase of stock in trade 502

Changes in inventories -3317

Stores,chemicals and packing materials 3799

Electric power,fuel and water 7166

Warehousing and distribution expenses 4935

Sales tax/VAT 1102

Other selling and distribution expenses 635

Establishment expenses 3047

Repairs to machinery 698

Repairs to building 28

TVC 324722

Sales 368295

Net income 21003

Operating leverage 2.074608389

ANNEXURE 6


Year 2011-12

Fixed costs

Employee benefits expense 2862


Finance costs 2667

Labor processing,production royalty and machinery charges 1569

Lease rent 1

TFC 18493

Variable costs

Cost of material consumed 274814


Changes in inventories -872

Stores,chemicals and packing materials 3482

Electric power,fuel and water 4094

Warehousing and distribution expenses 4380

Sales tax/VAT 821

Other selling and distribution expenses 192

Establishment expenses 2340

Repairs to machinery 728

Repairs to building 40

TVC 291460

Sales 336096

Net income 20040


ANNEXURE 6 (Continued)


Year 2011-10

Fixed costs

Employee benefits expense 2624.17

Depreciation and amortisation expense 13607.58

Finance costs 2327.62

Labor processing,production royalty and machinery charges 2283.72

Lease rent 0.68

TFC 20843.77

Variable costs

Cost of material consumed 1464.31


Changes in inventories 0

Stores,chemicals and packing materials 3378.02

Electric power,fuel and water 2255.07

Warehousing and distribution expenses 4195.35

Sales tax/VAT 756.02

Other selling and distribution expenses 401.73

Establishment expenses 2397.2

Repairs to machinery 631.72

Repairs to building 29.17

TVC 15508.59

Sales 254464.76

Net income 20286.3



ONGC (in crores)

Year 2012-13

Fixed costs

Royalty 108094


Cess 99971

Education Cess 3111

TFC 294952

Variable costs

Natural calamity 1101

Excise Duty 3093

Sales Tax 3834

Service Tax 353

Octroi and port trust 4057

Operating Expense 223615

Exchange loss 922

Purchases 31

Survey Cost 15668

Exploratory Well cost 84763

Provision & Write Off 18863

Prior Period Expense 531

TVC 356831

Sales 825671

Net income 20885.82


ANNEXURE 7


Year 2010-11

Fixed costs

Royalty 71373


Cess 56963

Education Cess 1828

TFC 206931

Variable costs


Excise Duty 3228

Sales Tax 3113

Service Tax 227



Exchange loss 0

Purchases 138

Survey Cost 16675




TVC 243650

Sales 661378

Net income 18780.09




Year 2011-12

Fixed costs

Royalty 97745


Cess 57831

Education Cess 1871

TFC 232406

Variable costs


Excise Duty 3599

Sales Tax 3339

Service Tax 236



Exchange loss 3613

Purchases 25

Survey Cost 12409




TVC 288540

Sales 761257

Net income 25425.37



Reliance industries ltd. Reliance industries ltd. Reliance industries ltd.

Reliance industries ltd.

Operating and cash cycle analysis

2012-13 2012-11 2011-10

Opening inventory 35955 Opening inventory 29825 Opening inventory 26981.62

Closing inventory 42729 Closing inventory 35955 Closing inventory 29825.38

Average inventory 39342 Average inventory 32890 Average inventory 28403.5

COGS 319926 COGS 288419 COGS 205900

Inventory period 44.88485 Inventory period 41.62295133 Inventory period 50.35103

Opening A/c receivable 18424 Opening A/c receivable 17442 Opening A/c receivable 11660.21

Closing A/c receivable 11880 Closing A/c receivable 18424 Closing A/c receivable 17441.94

Average A/c receivable 15152 Average A/c receivable 17933 Average A/c receivable 14551.08

Annual sales/365 987.1151 Annual sales/365 903.8465753 Annual sales/365 679.9178

A/c receivable period 15.34978 A/c receivable period 19.8407567 A/c receivable period 21.40123

Operating cycle 60.23463 Operating cycle 61.46370804 Operating cycle 71.75226

Opening A/c payable 40324 Opening A/c payable 34844 Opening A/c payable 9861.45

Closing A/c payable 45787 Closing A/c payable 40324 Closing A/c payable 34844

Average A/c payable 43055.5 Average A/c payable 37584 Average A/c payable 22352.73

COGS/365 876.5096 COGS/365 790.1890411 COGS/365 564.1096

A/c payable period 49.12154 A/c payable period 47.563302 A/c payable period 39.62479

Cash cycle 11.11309 Cash cycle 13.90040603 Cash cycle 32.12747

ANNEXURE - 8

Operating and cash cycle analysis

2012-13 2012-11 2011-10

Opening inventory 51654.35 Opening inventory 41189.84 Opening inventory 46785.72

Closing inventory 57043.94 Closing inventory 51654.35 Closing inventory 41189.84

Average inventory 54349.15 Average inventory 46422.1 Average inventory 43987.78

COGS 249073.8 COGS 218161.1 COGS 195340.1

Inventory period 79.64482 Inventory period 77.66767 Inventory period 82.19275

Opening A/c receivable 61948 Opening A/c receivable 39947 Opening A/c receivable 30586

Closing A/c receivable 68637 Closing A/c receivable 61948 Closing A/c receivable 39947

Average A/c receivable 65292.5 Average A/c receivable 50947.5 Average A/c receivable 35266.5

Annual sales/365 2262.112 Annual sales/365 2085.636 Annual sales/365 1811.995

A/c receivable period 28.86351 A/c receivable period 24.4278 A/c receivable period 19.46281

Operating cycle 108.5083 Operating cycle 102.0955 Operating cycle 101.6556

Opening A/c payable 52612 Opening A/c payable 52253 Opening A/c payable 49476

Closing A/c payable 53410 Closing A/c payable 52612 Closing A/c payable 52253

Average A/c payable 53011 Average A/c payable 52432.5 Average A/c payable 50864.5

COGS/365 682.394 COGS/365 597.7016 COGS/365 535.1784

A/c payable period 77.68386 A/c payable period 87.72353 A/c payable period 95.04215

Cash cycle 30.82447 Cash cycle 14.37194 Cash cycle 6.613409

ANNEXURE - 9

Date post:	16-Jan-2017
Category:	Economy & Finance
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Financial analysis of Reliance industries and ONGC

Economy & Finance