Working capital management of reliance industries limited

Pages: 593-595
Manisha (Department of Commerce, Monad University, U.P.)

Reliance Group established by Dhirubhai H. Ambani, is now India’s largest private sector enterprises, with businesses in the Energy and Materials value chain. 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. The present study attempts to know the working capital performance of RIL in India by ratios analysis and to analyze the factors responsible for the growth of RIL in India. The study also analysed RIL’s financial management for investment purpose. The study is an empirical one and it covers a period of four years ranging from 2008 to 2011 by using secondary data. The secondary data have been gathered from published annual reports and other such records for the relevant period of RIL and found that company’s overall position is very good. The company achieves sufficient profit in last five years. The solvency position of the company is very satisfactory. The company is totally depends upon equity capital and loans. The working capital performance in the terms of ratios of RIL is also found satisfactory.