Reliance Power Limited - Interpretation of the Trends of Profit & Loss Statement

 RELIANCE POWER LIMITED

INTERPRETATION OF THE TRENDS OF PROFIT & LOSS STATEMENT

(2012-13 TO 2016-17)

Submitted By: SASWATA CHANDA

Reg. No. 2017JULB01021

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About Reliance Power Limited: Reliance Power was incorporated as Bawana Power Private Limited on January 17, 1995. The company was established to carry on all or any of the business of producers, manufacturers, generators, suppliers, distributors, transformers, converters, transmitters, processors, developers, stores, procurers, carriers and dealers in electricity, all form of energy and any such products and by–products derived from such business including without limitation, steam, fuels, ash, conversion of ash into bricks and any product derived from or connected with any other form of energy, including, without limitation to conventional sources such as heat, thermal, hydral  and/or from non–conventional sources such as tidal wave, wind, solar, geothermal, biological, biogas and CBM.

Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally. The Company on its own and through subsidiaries is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW, one of the largest portfolios of power generation assets under development in India. 

Objective of Trend Analysis: This comparative study or the trend analysis has been done to examine the key financial items, to identify the trends they depict and to make a prediction about how those items are likely to behave in future.

Note: The formats of Profit & Loss Statement followed by the DLF varied over these 5 year period. So the figures of 2011-12 to 2014-15 are reconstructed wherever necessary as per the format followed in 2016-17.

1. Trends of Revenue:

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Analysis on Revenue from Operations: The revenue from operations does not shows a Steady growth from 2012-13 to 2016-17. Its consistently poor and very fluctuating too as we see a major leap in the year 2014. Hence there is an somewhat decreasing trend in the revenue. Due to fluctuations we cannot comment clearly on the trend of the revenue.

Analysis on other operating revenues: There were other operating revenues for the company which also showed an increase as well as a decrease from the year 2012-13 to 2016-17. Big leap in the year 2015 after which it starts decreasing.

Analysis on Other income: Apart from revenue from operations there is also other income for the company where the trend was fluctuating through the years. Both increase and decrease was witnessed through.

Overall: Hence the total revenue includes revenue from operations, other operating activities and the other income where all of these showed an increase as well as decrease over the past 5 years. Hence the overall revenue or the total revenue of the company has witnessed a fluctuating trend from 2012-13 to 2016-17. The company is not getting constant revenue from operations or others. The company is definitely not doing good. There absolutely no stability in its revenue.