TERM PAPER OF SUBJECT:- Strategy And Tactics Of Pricing(CAP 557) TOPIC: - Reliance Industry

Submitted To Lovely Professional University, Phagwara For the partial fulfillment of the degree of MCA-4th SEM

Submitted To: Mrs Harjinder Kaur (Lecturer)

Submitted By: Name: Ajay kumar Roll No. Rd1206A19 Reg. No.:11203127

ACKNOWLEDGEMENT
It is not until you undertake the term paper like this one that you realize how massive the effort it really is, or how much you must rely upon the Selfless efforts and goodwill of others. There are many who helped us with this project, and we want to thank them all from the core of our Hearts. We owe special words of thanks to our Teacher Mrs Harjinder Kaur for their vision, thoughtful counseling and encouragement at every step of the project. We are also thankful to the teachers of the Department for giving us the best of knowledge and guidance throughout the project.And last but not the least, we find no words to acknowledge the Leakage-resilient encryption and authentication & moral support rendered by our parents in making the effort a success. All this has become reality because of their blessings and above all by the grace of god.

AJAY KUMAR

CONTENTS

1)

Company Profile Introduction History Group Profile Vision & Mission Awards and honours Basic Accounting Terminology ,Introduction of Working Capital Objective Behind The Study

2) 3) 4) 5) 6) 7) 8)

Types of Working Capital

Principle of Working Capital Management Factors Determining of Working Capital Sources of Working Capital Methods of Calculation of Require of Working Capital Working Capital Cycle Components Of Working Capital Management of Working Capital Ratio Analysis

Lyondell Deal, RIL, Barabanki Division Bibliography

Company Profile
Reliance Industries GROWTH IS LIFE

Introduction
The Reliance Industries India group is India's largest private sector conglomerate. The Reliance Industries Limited was started by the legendary Late Dhirubhai H. Ambani. After a humble start in the late 1970's as a textile company its success skyrocketed and now covers almost all industry verticals. Today, Reliance Industries generates revenues in excess of USD 22 billion and exports products worth USD 7 billion to more than 100 countries. The Reliance Industries Limited is a 'Fortune Global 500 company' and employs more than 25,000 professionals across the world. Reliance enjoys leadership in polyester yarn & fiber produce and is among the top 5 players in the world in major petrochemical products. Reliance Industries Limited holds largest Oil & Gas exploration area in India and has achieved 74 % success rate in terms of discoveries. Reliance Industries India has been a pioneer in the equity culture cult and is highly respected for its corporate transparency, deep market penetration ability, innovations and above all for its ability to generate 'products & services' for all sections of the society. Its guardianship for India Inc. stupendous growth has been felicitated with no of awards in areas like Quality, Energ Management, Health Safety & Environment, Exports and Retail & Franchising. It also bagged 'Golden Peacock Award' for Corporate Management in 2005-2006 and enjoys high corporate ranking in Fortune Global 500 Company.

Company profile
Date of Establishment Revenue Market Cap Corporate Address 1966 58006.5 ( USD in Millions ) 2444525.33559075 ( Rs. in Millions ) 3rd Floor Maker Chambers IV,222 Nariman Point, Mumbai-400021, Maharashtra www.ril.com

Management Details

Business Operation Background

Financials

Company Secretary Bankers

Chairperson - Mukesh D Ambani MD Mukesh D Ambani Directors - Ashok Misra, Dharam Vir Kapur, Dipak C Jain, Dr Dharam Vir Kapur, Dr Raghunath A Mashelkar, Hardev Singh Kohli, Hital R Meswani, K Sethuraman, Mahesh P Modi, Mansingh L Bhakta, Mukesh D Ambani, Nikhil R Meswani, P M S Prasad, Pawan Kumar Kapil, Prof Ashok Misra, Prof Dipak C Jain, R Ravimohan, Raghunath A Mashelkar, Ramniklal H Ambani, S Venkitaramanan, Vinod M Ambani, Yogendra P Trivedi Refineries The Reliance Group, founded by Dhirubhai H. Ambani , is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of $ 30 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Dhirubhai Ambani founded Reliance as a textile company and le Total Income - Rs. 2515891.1 Million ( year ending Mar 2011) Net Profit - Rs. 202863 Million ( year ending Mar 2011) K Sethuraman ABN Amro Bank, Allahabad Bank , Andhra Bank, Bank of America, Bank of Baroda, Bank of India , Bank of Maharashtra, Calyon Bank, Canara Bank , Central Bank

History
From a humble textile company to Fortune 500 Company

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 28 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production to be fully integrated along the materials and energy value chain. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.

Group Profile
Major Subsidiaries -

ods Limited

& Production - DMCC

Major Associates -

Group Profile
Major Subsidiaries -

Retail Finance Limited

- DMCC

Major Associates -

The company works under different business segments:

Exploration and Production Petroleum Refining and Marketing Petrochemicals Textiles Retail

Vision & Mission

Mukesh Ambani, chairman of Reliance Industries Ltd, Indias largest private company, laid down a road map for business transformation and value creation for the company at its 35th annual general meeting. This has been a truly transformational year at Reliance Industries (RIL).The successful commissioning of the KG-D6 oil and gas production fields and the safe start-up of the world-class, complex refinery in the Special Economic Zone at Jamnagar catapults RIL into the league of integrated energy companies globally. RIL is now among the ten largest non-state owned refining companies and one of the largest deep water oil and gas operators in the world. Through these path-breaking initiatives, RIL is set to radically change Indias energy landscape. Gas production from KG-D6 will double Indias indigenous production while the new refinery will make India a major supplier of green-fuels to the world. Over the years, our initiatives have enabled the enrichment of millions of lives in India. We focused on improving efficiency, leveraging on the quality of our assets and remaining nimble. This reflects the strength of our business model, robustness of our systems and processes, farsighted planning, meticulous execution and above all, our indomitable will to succeed. While staying focused on our long-term strategy, we have remained committed to protecting our employees, ensuring their safety, supporting local communities and safeguarding the environment. Looking forward, we see exciting opportunities for growth in the energy sector. At RIL, we have always invested aggressively into businesses of the future. Our recent investments in the oil and gas and refining businesses have created a strong growth platform. RIL is on its way to becoming a competitive, integrated, global energy company.

Products and brands offered by the company:

Crude oil and natural gas LPG Propylene Naphtha Gasoline Jet/Aviation Turbine Fuel Superior Kerosene Oil High Speed Diesel Sulphur Petroleum Coke Polypropylene High Density Polyethylene Low Density Polyethylene Linear Low Density Polyethylene Polyvinyl Chloride Poly ?Olefin Suitings ,Shirtings,Readymade Garments Furnishing fabrics Day curtains Automotive upholstery Suitings Ready-to-stitch Take away fabric Fleet management services

Highway hospitality services Vehicle care services Linear Alkyl Benzene Paraxylene Purified Terephthalic Acid Mono Ethylene Glycol Staple Fibre Filament Yarn Texturised yarn Twisted yarn Moisture management yarn Quality certified sleep products Polyethylene terephthalate

Awards and honors

2007. The Award is a salute to those who have made the country proud. Vision by the United States India Business Council. of The Institution of Chemical Engineers, UK. of Technological Sciences and Engineering (ATSE) in 2008. Global 500 list of 'World's largest corporations'; ranking for 2009 is as follows: o Ranked 264th in terms of sales o Ranked 117th in terms of profits Governance for the year 2008. nery of the Year Award for 2008', for second successive year from 'Petroleum Federation of India'. USA, 'The 2008 Annual Spring Gala Award' in 2008. Leadership Award for Global Vision by the United States India Business Council.

Basic Accounting Terminologies

Introduction Every human being consciously engages himself in some meaningful activity. Although the measure of success may vary in each case one has to be careful and cautious at every stage in his life. Bookkeeping and accountancy is a science, which has attracted the attention all such human activities. Accounting enables a person to assess the risk appropriate steps. Account an account denotes a summarized record of transactions pertaining to one person, one kind of asset, or one class of income, or one class of income or loss. Assets properties of every description owned by a person will be called assets for example land and building, plant and machinery, cash balance, bank balance etc.

Bad debts which are irrecoverable and written off from debtors A/C as a loss are termed as bad debts. Casting means the totaling of the books of account casting has to be done of the ledger accounts and also of a journal. Creditor a creditor is a person to whom we owe something. He is the person to whom we have to pay. Capital the dictionary meaning of the term capital is wealth capital is the total account invested in business the capital of a business is the claim of the owner to the business is the claim of the owner to the business. Debtor is person who owes something he is the person who has to pay to other person. Drawing is the total amount withdrawn by a trader from his business for meeting personal expenses. Trader becomes a debtor of business by the amount withdrawn by him from business for private purpose. Discount it is an allowance or a concession allowed by the receiver of benefit to the giver of benefit. It is normally allowed to the customers, debtors, and retailers etc. The discount may be classified in two ways. 1) Cash discount. 2) Trade discount. Cash discount it is discount allowed to customer as an inducement to make payment immediately. Cash discount is closely related to cash receipt and cash payment. When cash is received, discount is allowed is a loss to a business while cash discount received is a gain to him. Trade discount it is an allowance made by a wholesaler to a retailer in order to enable the retailer to sell the articles at list prices and earn a reasonable margin of profit. The amount of trade discount is deducted from the invoice; therefore, it has no connection as to the receipt and payment of cash. Hence, trade discount does not appear in the books of accounts. Entry the term entry refers to the recording of a transaction in the books of account. It is the primary record of a transaction in the books called journal or any other subsidiary journal. Expenses the effort made by business to obtain the revenues are termed as expenses.It is the amount spent on manufacturing and selling of goods and services. Folio it means the page number of the book of original entry or of the ledger by writing folio i.e. page number, one can easily find out on what page the original entry is made and on what page the entry is made in the main book. Goods commodities in which a trader deals are called as goods. Insolvent a person is said to be insolvent when his liabilities are more than asset Insolvency when the liabilities of a firm are greater than its assets, it is referred to as insolvency indicating the liabilities of a business to meet all its liabilities. Such a business firm is said insolvent. Journal is the book 0f accounts in which business transaction are first recorded. It is a book of prime entry or first entry. Liabilities debts owed by a person are called liabilities. Liabilities represent the total amount to creditors. Debts arise because, goods may be purchased out but payment may not be made at the time of purchasing the goods. Therefore the total amount payable to creditors will be the liabilities. Narration it is a brief explanation or description on to a journal entry it is given on the line just below the journal entry within the brackets. Posting transaction entered in the original books of entry are also to be recorded in the ledger on the basis of the entry made in the original book is called posting.

Purchases the goods bought for resale or manufacture and resale are called purchases. Purchases may be classified as 1) Cash purchase 2) Credit purchase Revenue it represent the accomplishment of the enterprise until the company has been successful in selling its products, no revenue is realized. Revenue is the amount that adds to the capital. Sales the goods sold by a business for cash or on credit are called sales. The sales may be classified as; 1) Cash sales 2) Credit sales Solvent a person is said to be solvent when his assets are equal to or more than his liabilities. Stock goods unsold lying with a business on any given date is called as stocks. Transactions a transaction are an exchange of money or moneys worth between two parties. It is dealing between two parties. It is dealing between two or more persons. The transactions are classified on the basis of exchange of goods and service they may be. 1) Barter transactions. 2) Monetary transactions. Monetary transactions are classified in the two types. 1) Cash transactions. 2) Credit transactions. Book keeping is defined as the process of analyzing, classifying and recording transaction in a systematic manner to provide the information about the financial affairs of the business concerns. Accounting is a wider concept, which includes book keeping accounting, is involved not only maintaining records, but also balancing of accounts, interrupting the balances, preparation of summaries, drawing conclusions from the summaries knowing the results of financial transactions etc.

Reliance Industries Financial Summary Balance sheet

Classification of accounts.
Accounts are classified in to four types 1) Personal accounts. 2) Real accounts. 3) Nominal accounts. Personal accounts DEBIT THE RECIVER AND CREDIT THE GIVER Real accounts DEBIT WHAT COMES IN AND CREDIT WHAT GOES OUT Nominal accounts DEBIT EXPENSES AND LOSSES AND CREDIT GAINS OR INCOMES. Journal is derived from the French word jour which means a day journal is the book of original entry or primary entry. It is a book of daily record first of all the business transactions are recorded in the journal and subsequently they are posted in the ledger. Ledger a group of accounts is known as ledger a ledger is the principle book of account a journal is meant for passing the entries of business transaction. A ledger is a bound book. It contains many pages, which are called folios. These pages are consecutively numbered. For

each account a separate page is kept. Every ledger has an index. It is generally an alphabetic index one page is allotted for each alphabet. All the accounts commencing with that particular alphabet are indicated on that particular page only. The page number on which the particular account appears is shown in the index. Ledger posting After the transaction has been analyzed into its debit and credit elements in a journal, each such debit and credit elements must be transferred in a journal accounts. The process of transfer of entries from journal to ledger account is called ledger posting. Trial balance After posting the transaction to respective ledger accounts they are balanced and then a trial balance is drawn. A trial balance is a statement, which shows the list of accounts showing debit balances and list of accounts showing credit balance. If double entry principles are strictly followed the total of the entire debit balances must agree with the total of all the credit balance. Trade discount The amount of trade discount is deducted from the bill itself. Therefore, a trade discount does not appear in the books of accounts. If a trade discount is given in the transaction, the amount of such a trade discount is deducted from the gross value of purchase and only the net value (arrived at after allowing a trade discount) is recorded in the purchase books. Debit note A debit note is sent to the supplier when the goods purchased from him are returned. A debit note is a statement sent by the buyer to the supplier stating the full details of the good returned. It is sent along with the goods. It intimates the supplier that his account has been debited by the value of the good returned to him. Credit note A credit note is sent to the customers when we receive goods returned from them. It gives the full details of the good returned by the customer. Credit notes are generally is printed in red ink. Transaction is recorded in this book on the basis of credit notes. Trial balance The dictionary for accountants written is a list or abstract of the balance or of total debits and total credits of the accounts in a ledger, the purpose being to determine the equality of posted debits and credits and to establish a basic summary for financial statements. Subsidiary books (sub division of journal) If all the business transaction were recorded in one and the same journal, the journal would be bulky and cumbersome. It would be very difficult to make clerks to work on the same journal at one and the same time. Instead of recording all the transaction in on and the same journal, they are recorded in separate journals meant for the purpose. Therefore, in order to meet the requirements of modern business, the original journal is divided into the following Purchase book Sales book Purchase return book Sales return book Cash book Bills receivable book. Bills payable book. Journal proper.

Final accounts
The final accounts are prepared to find out the profit or loss and to know the financial position of the business. These account consist of The trading account The profit and loss account Balance sheet

Trading account
A trading account is prepared to find out the gross profit or gross loss in the business done during the year. The gross profit is the difference between the cost of goods sold and the sale proceed without any deduction of indirect expenses. Hence, in the trading account it is necessary to include all items of expenses directly affecting the cost of goods sold. The cost of goods sold includes the purchase price of the good sold plus buying and bringing expenses and the expenses of conversion of raw material into saleable finished goods.

Profit and loss account

Profit and loss account is another summary account, which is prepared after preparation of trading account. Trading account does not disclose the net income or loss. There are other expenses in order to ascertain the profit or not loss.

Balance sheet
A balance sheet is a statement of the financial position of a business on a given date. It is a snapshot of the financial condition of the business. The balance sheet is not account; it is only a statement showing asset and liabilities of the business. It is important to note that the balance sheet always balances. The total value of the assets is always equal to the capital and liabilities. We can define balance sheet as a statement of financial position of any economics unit as at a given moment of time, its assets, at cost, depreciated cost or another indicated value, its liabilities and its ownership equities

Conclusion
To summarized the subject of cost working capital and profit planning or management accountancy. I have select subject Working Capital. In short, I would like to summarize this report of this industrial unit by showing that this unit has achieved a rapid growth and progress in very short time period of time in 10 to 20 years. As their labors and employees have no problem as they get superior facility. This industrial unit does not have trade union. There is harmonious and peaceful relationship between labors, employees and management. The management of this industrial unit is efficient and effective. Thus, this industrial unit has completed 24 glorious year of excellence and growth and welcomed 25th year. As the requirement of company is net working capital is adequate and it increase and highest in the year 2011-2012 and the lowest net working capital was in the year 2009-2010

Bibliography
1. Book about Excise Manual -By R. K. Jain

2.Annual Report of Reliance Industries Limited 3. Financial Management by -Khan & Jain -S. N. Maheshwari 4. www.ril.com