Reliance: The Sturdy Bubble

Abstract

Deals with innovative financial strategies and accounting policies adopted by Reliance Industries. The case covers the entire life history of the company, thus providing an opportunity for financial and strategy analysis. To save computational work, appropriate ratios and funds flow analysis is provided in the Appendix. Market price data are provided in order to make the case useful for appropriate evaluation of various financial securities issued by the company. A number of accounting policy issues are raised. It is possible to illustrate how the accounting choices made now affect future financial data, and what limitations it imposes on the management for future financial decisions.