project report final dlf(1)

FINANCIAL ANLYSIS OF DLF LTD

CHAPTER 1

INTRODUCTION

1.1 Company Profile

DLF Limited, or DLF, is India's largest real estate developer based in New Delhi, India. The DLF Group was founded by Chaudhury Raghuvendra Singh in 1946. DLF developed some of the first residential colonies in Delhi such as Krishna Nagar, South Extension, Greater Kailash, Kailash Colony and Hauz Khas. In 1957, with the passage of Delhi Development Act, the government assumed the control of real estate development activities in Delhi and the role of private real estate developers was restricted. As a result DLF began acquiring land at relatively low cost outside the area controlled by the Delhi Development Authority, particularly in the district of Gurgaon in the adjacent state of Haryana. In the mid-1970s, the company started developing its ambitious DLF City project which helped transform Gurgaon from a farming village to a commercial and real estate hub. DLF has been instrumental in putting Gurgaon on the urban landscape of India. Its upcoming plans include hotels, infrastructure and special economic zones-related development projects.

The company is currently headed by Indian billionaire Kushal Pal Singh, who inherited the company from Chaudhury. Kushal Pal Singh, according to the Forbes listing of richest billionaires in 2008, now stands as the 8th richest man in the world. The company's US$ 2 billion IPO in July, 2007 created India's biggest IPO in history. In July 2007, DLF announced its first quarter results ending 30th June 2007. The company reported a turnover of Rs. 3,120.98 Crore and PAT at Rs. 1,515.48 Crore.

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http://en.wikipedia.org/wiki/2007

http://en.wikipedia.org/wiki/July

http://en.wikipedia.org/wiki/IPO

http://en.wikipedia.org/wiki/US$

http://en.wikipedia.org/wiki/Kushal_Pal_Singh

http://en.wikipedia.org/wiki/Kushal_Pal_Singh

http://en.wikipedia.org/wiki/India_Rich_List

http://en.wikipedia.org/wiki/Special_economic_zones

http://en.wikipedia.org/wiki/Infrastructure

http://en.wikipedia.org/wiki/Hotel

http://en.wikipedia.org/wiki/Gurgaon

http://en.wikipedia.org/w/index.php?title=DLF_City&action=edit&redlink=1

http://en.wikipedia.org/wiki/1970s

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/New_Delhi

http://en.wikipedia.org/wiki/Real_estate_developer


COMPANY’S PROFILE cont…

DLF is India's largest real estate company in terms of revenues, earnings, market capitalisation and developable area. In line with its current expansion plans, DLF has over 751 million sq. ft. of development across its businesses, including developed, on-going and planned projects. This land bank is spread over 32 cities, mostly in metros and key urban areas across India. Already a major player in locations across the country, DLF, with over six decades of experience, is capitalising on emerging market opportunities to deliver high-end facilities and projects to its wide base of customers by constantly upgrading its internal skills and resource capabilities.

A roster of world-reputed businesses chooses DLF to jointly venture with, to seek growth in India. Among them, Laing O'Rourke- famous UK based construction company credited with construction of Dubai International Airport, London's Millenium Tower, etc, will construct all DLF's landmark projects. Together DLF-Laing O' Rourke shall build the expressways, ports and other megastructures of India's new economy.

Nakheel of Dubai are partnering with DLF for townships of pathbreaking concepts in India. WSP Group Plc is also partnering DLF, providing Management and consultancy to the built and natural environment. DLF has also tied up with Hilton

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Hotels to jointly develop world class hotels in India. It is more than market dynamics however. DLF management constantly upgrades professional resources to construct responsive strategies, to adapt to local preferences; to deliver high quality, in all its projects and services to a wide customer base.

All the intensified growth underlines DLF's commitment to quality, trust and customer sensitivity and, delivering on its promise with agility and financial prudence. This, in turn, has earned DLF the coveted 'Superbrand' ranking for three years consecutively, including the current year.

The Homes business unit involves a wide range of products including condominiums, duplexes, row hoses and apartments of varying sizes, with a focus on the higher end of the market. DLF has 214 msf of developed area under homes and residential plots. Currently, DLF has more than 477 msf of land resource targeted towards residential business.

DLF's office segment is one of the group's most admired verticals. Nearly 40 msf of ongoing projects forms a strong portfolio for DLF offices, having reached a mature delivery platform of 11-12 msf on an annual basis. Current land resource owned by DLF for development of offices across the country is 164 msf approximately.

With a booming retail environment on the horizon, this is a major thrust area for the Group and DLF is actively creating new shopping and entertainment spaces all over the country. The company has 12 mn sq. ft of retail projects under construction and owns land resource of another 92 msf for development in metros and other key urban destinations across the country. These include categories of prime downtown shopping districts, shopping centres and super luxury malls, amongst others.

With the growth of the Indian economy and the resulting increase in corporate and consumer incomes, as well as foreign investment, DLF sees significant opportunities for growth in its three primary businesses. DLF's mission is to build a world-class real estate development company with the highest standards of professionalism, ethics and customer service and to thereby contribute to and benefit from the growth of the Indian economy.

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OBJECTIVE:

To contribute significantly to building the new India and become the world·s most valuable real estate company. To build world class real ²estate concepts across six business lines with the highest standards of professionalism ,ethics ,quality and customer service

1.2 Chairman profile

Kushal Pal Singh : -(company’schairman) Kushal Pal Singh or K.P. Singh was born on August 15, 1931, at Bulandshahar in Uttar Pradesh. Today he presides over DLF Universal Limited, India’s largest real estate developer.Ithas an estimated land bank of 10,255 acres (42 km2) with about 3,000 acres (12 km²) being in prime city locations such as Delhi NCR, Chandigarh and Kolkata

Background:-Born on August 15, 1931, Mr. K.P. Singh charted a distinguished and inimitable career, reflected in the establishment of India’s largest real estate company. Today, under his leadership, DLF Limited has established an unrivalled position in real estate industry with an enviable portfolio in terms of scale of delivery, bandwidth of range of products and development potential. Mr. K. P. Singh has conceived and pioneered initiatives, which are today, recognised as benchmarks in the real estate sector. He has been the visionary in steering DLF’s growth as a multi-dimensional, diversified, multi-billion dollar conglomerate. DLF has now become the world’s largest real estate company in terms of revenues, earnings, market capitalisation and developable area. A graduate in science, Mr. K.P. Singh pursued Aeronautical Engineering in UK, being subsequently selected to the Indian Army by British Officers Services Selection Board, UK. He was

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commissioned into the renowned cavalry regiment of ‘The Deccan Horse’ of the Indian Army. In 1960, he joined American Universal Electric Company and soon after its merger with DLF Universal Limited in 1979, he took over as the Managing Director of this new company.

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Positions:-

Present positions :

• Chairman of the Board, DLF Limited.• Chairman and Director of 31 different private companies engaged in various sectors of the economy.• MeCommerce & Industry (FICCI).• Member of Delhi Vision Group to overview the Master Plan of Delhi 2021.• Honorary Consul General, Principality of Monaco.

Positions held :

• President of the apex industry chamber of the country, Associated Chamber of Commerce & Industry of India (ASSOCHAM).• President of the PHD Chamber of Commerce and Industry.• Director of Central Board, Reserve Bank of India (RBI).

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1.3 COMPANY HISTORY

1963 : Incorporation of American Universal Electric (India) Ltd

1979 : DLF United Limited amalgamates with American Universal Electric (India) Limited to form DLF Universal Electric Limited

1981 : DLF Universal Electric Limited changes name to DLF Universal Limited

1981 : DLF Universal Limited obtains its first licence from the State Government of Haryana and commences development of the 'DLF City' in Gurgaon, Haryana

1985 : We initiated plotted developments, self first plot in Gurgaon, Haryana. Consolidate the development of DLF City for township development.

1991 : Construction of our first office complex, 'DLF Centre', at New Delhi

1993 : Completion of our first condominium project, 'Silver Oaks',at DLF City, Gurgaon, Haryana

1996 : Construction of 'DLF Corporate Park', our first office complex at DLF City, Gurgaon, Haryana.

1999 : Development of the DLF golf course

2000 :The Scheme of Merger/Amalgamation of DLF Industries Limited with M/s. DLF Universal Ltd. which was approved by the Hon'ble HighCourt of Delhi at New Delhi and by the Hon'ble High Court of Punjab and Haryana At Chandigarh came into effect on 09.10.2000.

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2002 : We venture into retail development in Gurgaon, Haryana

2002 : We offer integrated family entertainment centers with the commencement of operation of'DTCinemas' at Gurgaon, Haryana

2004 :Development of 'DLF Cybercity', an integrated IT park measuring approximately 90 acres at Gurgaon, Haryana.

2005 : * Acquisition of 16.62 acres (approx) of mill 1 land in Mumbai * Received 'Corporate Buildings Award' instituted by'Indian Architect and Builder', a publication of Jasubhai Media Group, Mumbai * Received 'Superbrand' award from Hon'ble Minister for Civil Aviation, Mr. Praful Patel

.

2006 : Construction joint venture signed between DLF Universal Limited and U.K. based Laing O'Rourke Plc to form DLF Laing O'Rourke (India) Limited

2006 : DLF Universal Limited changes name to DLF Limited

2006 : Alliance agreement signed between DLF and Hilton International Co. to incorporate a joint venture company in India to develop, own and acquire 50 to 75 hotels and services apartments.

2006 :DLF enters into a joint venture with WSP Group Plc. for the purposes of providing engineering and design services, environmental and infrastructural facilities and also project management services.

2007- :The US-based Hilton Hotels Corporation has declared that it will develop 10 hotel

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projects in the country in alliance with DLF Ltd.Our business was founded by the late Mr. Raghvendra Singh and our Promoter,Mr. K P Singh.

Our business has a history of over 6 decades, commencing with theincorporation of Raisina ColdStorage and Ice Company Private Limited on 16.03.1946 and Delhi Landand Finance PrivateLimited on 18.09.1946. Since the inception of our Company, Mr. K PSingh has been the promoterof the Company.

Pursuant to the order of the Delhi High Court dated 26.10.1970, DelhiLand and Finance PrivateLimited and Raisina Cold Storage and Ice Company Private Limitedalong with another groupcompany, DLF Housing and Construction Private Limited, merged withDLF United Private Limitedwith effect from 30.09.1970.

Thereafter, DLF United Limited merged with our Company, then known asAmerican Universal Electric(India) Limited, with effect from 1.10.1978, under a scheme ofamalgamation sanctioned by the DelhiHigh Court and the Punjab and Haryana High Court.The merged entitywas renamed as 'DLF UniversalElectric Limited' with effect from 18.06.1980.

Key events and milestones

2007 : DLF enters into a joint venture with Prudential Insuranceto establish a joint venture company toundertake life insurance business in India.

- DLF launches bn issue.

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3.3 COMPANY PROFILE

BUSSINESS GROUP : DLF GROUP LISTINNNG : BSE,NSE

ISIN NO : INE271C01023I NCORPORATION : 18/06/1980

PUBLIC ISSUE DATE : 11/6/2007

Board of Directors Reference Information

Executive Directors Registered Office Shopping Mall, 3rd Floor,

Arjun Marg,Dr. K.P. Singh Phase-I, DLF City, Gurgaon-

122 002Chairman (Haryana)

Mr. Rajiv SinghVice-Chairman Corporate Office

DLF Centre, Sansad Marg,Mr. T.C. Goyal New Delhi-110 001

Managing Director

Ms. Pia Singh Statutory AuditorsWhole - Time Director M/s. Walker, Chandiok & Co

Mr. Kameshwar SwarupSenior Executive Director – Legal Registrar & Share

Transfer AgentsM/s.Karvy Computershare

Private Ltd.

Non-Executive Directors Listed atBombay Stock Exchange

Mr. G.S. Talwar National Stock ExchangeDr. D.V. KapurMr. K.N. Memani

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Mr. M.M. Sabharwal Company Secretary Mr. Ravinder Narain Mr. Subhash Setia Mr. B. Bhushan Brig. (Retd.) N.P. Singh

3.4Management

(Sitting): 1. Ms. Pia Singh 2. Mr. Rajiv Singh 3. Dr. K.P. Singh 4. Mr. T.C. Goyal5. Mr. M. M. Sabharwal(Standing): 6. Mr. Ravinder Narain 7. Mr. G. S. Talwar 8. Mr. K. Swarup 9. Dr. D. V. Kapur 10. Mr. K. N. Memani11. Mr. B. Bhushan 12. Brig. (Retd.) N. P. Singh

1.5 DLF Today, and tomorrow:-

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VISION MISSION VALUES•To contribute significantlyto building the new Indiaand become the world’smost valuable real estateCompany.

•To build world-classreal estate concepts acrosssix business lines withthe highest standards ofprofessionalism, ethics,Quality and customer service.

•Sustained efforts to enhance customer value and quality•Ethical and professionalservice•Compliance and respect forall community, environmentaland legal requirements.

DLF has charted its next growth steps to retain itsLeadership position in India. Already a major playerin locations across the country, including metroand key urban centers, DLF, with over six decadesof experience, is focusing on strengthening itsLateral and vertical business drivers. These includedevelopment of innovative business strategies,strengthening its professional resources and drivingmarket penetration with an ear-to-the-groundApproach that is adaptive to local market needs.The group is capitalizing on emerging market opportunities to deliver high-end facilities and projects to its wide base of customers byconstantly upgrading its internal skills and resourceCapabilities.In line with its current expansion plans, DLF has over 751 million sq. ft. of planned projects under way, across all its business verticals. This land bank is spread over 32 cities, mostly in metros and keyurban areas across India.

All the intensified growth underlines DLF’scommitment to quality, trust and customersensitivity and, delivering on its promise with agilityand financial prudence.DLF’s aspirations for India soars higher thandeveloping world class buildings and infrastructure.The group recognises its inherent role as a catalystof change in the socio-economic transformation ofthe country.With the growth of the Indian economy and theresulting increase in corporate and consumerincomes, as well as foreign investment, DLF seessignifi cant opportunities for growth across all itsbusiness verticals. DLF’s mission is to build a worldclassreal estate development company with thehighest standards of professionalism, ethics andcustomer service and to thereby contribute to andbenefi t from the growth of the Indian economy.This is DLF, Building India.

1.6MILESTONE ACHIVED

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1.7 DLF’S PARTNER IN BUILDING INDIA

Project ExecutionDLF has entered into a 50:50 JV with WSP. The JV will provide engineering and design services, environmental and infrastructure facilities as well as project management services.

WSP operates as a specialist in the property, environmental, transportation and infrastructure sectors providing a full range of services from planning through to design, implementation and maintenance. WSP's expertise is seen at work in the Freedom Tower at Ground Zero, New York; the Mall of Emirates, Dubai; apart from major developments at Heathrow and Stansted Airports in London. WSP will engage specialist staff and expertise from global operations to work with DLF professionals.

ConstructionIn February 2006, DLF entered into a joint venture with UK's leading construction company, Laing O'Rourke Plc. The joint venture company will improve the quality of construction in all the developments and help in setting new benchmarks in the real estate sector. The JV Company is currently executing prestigious projects like- The Magnolias, The Mall of India, IT Parks and many of DLF's retail destinations. DLF-LOR will construct the Group's infrastructure projects, including roads, bridges, tunnels, pipelines, harbors, runways and power plants, through this JV.

Laing O'Rourke operates worldwide, in Asia, Europe, the Far East and Australia and employs more than 23,000 people. Their best know projects include Terminal 5 at London Heathrow airport , a terminal at the Dubai international airport, the Millennium Dome in the UK and a Convention Centre in Hong Kong

Airport ModernisationDLF has chosen Germany's Fraport AG (Frankfurt Airport Services Worldwide), the owner and manager of Frankfurt Airport, as its partner for fresh forays into airport modernisation. A special purpose vehicle, DLF Fraport SPV, has been set up specializing in development and management of airports in India. DLF and Fraport will hold at least 26 per cent each in the special purpose vehicle.The companies signed a memorandum of cooperation in April 2007 to explore airport projects.

Township DevelopmentDLF has signed an MoU with property developer Nakheel LLC of

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the United Arab Emirates to build large townships in India, through a 50:50 joint venture company. Two projects in Gurgaon and South Maharashtra/Goa, have already been identified for the development. Properties developed by Nakheel include The Palm Islands, The World Islands, Jumeirah Lake Towers, Discovery Gardens, Lost City and the Ibn Battuta Mall.

HospitalityDLF's hospitality arm, DLF Hotels, has signed an LoI with Four Seasons Hotels and Resorts to operate a proposed luxury hotel at DLF Golf Links in DLF City, Gurgaon in Delhi's southern borders. In November 2006, DLF Hotels announced its first joint venture with The Hilton Hotels to acquire and develop 50 to 75 hotels and serviced apartments throughout India.

The joint venture hotels will represent several brands from Hilton Hotels Corporation's brand portfolio, including Hilton Hotels, Hilton Garden Inn, Homewood Suites by Hilton and Hilton Residences. The JV Company will develop and build these properties, while Hilton will manage them.

DLF will hold 74 per cent in the joint venture company, and Hilton will hold the remaining stake as its commitment to the venture. Over the next 5 to 7 years, Hilton has committed to invest up to $ 143 million.

The initial stage of the joint venture will involve 20 hotels in a number of key locations including, Chennai, Kochi, Bhubaneshwar, Hyderabad, Kolkata and Delhi. Some of these hotels are planned to be Hilton Garden Inns and Hilton Hotels. Beyond the initial 20, the JV continues to identify and acquire sites and undertake new hotel developments.

IT InfrastructureDLF has partnered with IBM to outsource all its IT requirements to the global IT infrastructure giant. Under this partnership IBM will be responsible for the helpdesk services for all the DLF employees across India towards the IT infrastructure requirements. The partnership will support the current IT requirements as well as identify and deploy new solutions for DLF and Indian real estate industry. At DLF joint ventures and strategic alliances are another facet of the Group's determined growth with some of the best names globally.Asset ManagementDLF and Prudential Financial Inc. (PFI) of US, have signed a

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joint venture to provide a broad array of mutual fund and investment products, including domestic and eventually international mutual funds to Indian retail and institutional clients. The JV has been formulated on a 61:39 shareholding pattern between PFI and DLF. This agreement allows PFI to expand its international investments business and marks its official entry into the Indian mutual fund market.

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1.8CORPORATE SOCIAL RESPONCIBILITY

We dream, We dareWe grow, We shareWe build, We care

CSR InitiativesWhile DLF continues to create world-class infrastructure throughout India, it has not lost sight of its responsibilities as a change agent for accelerating the pace of social and economic transformation across various segments to complement the efforts of the government.

Swapana Sarthak informal schoolIn fact DLF's first social responsibility interventions date back to the time that DLF was setting up the DLF township in Gurgaon when instead of turning a blind eye to the local problems, DLF decided to undertake internal development work in the villages of Nathupur, Chakarpur and Wazirabad by contributing through construction of internal village roads, additional rooms in the schools and internal village electrification. At around the same time, DLF initiated its first education initiative by setting up the Swapana Sarthak informal school for children of the construction workers. This school manned by trained volunteers conducts classes for children who are ill equipped to join regular school or those who cannot afford to do so. All children enrolled are provided with free uniforms, mid day meals and learning material. Starting from merely 10 students, the school today has on roll 220 students. Initially getting the children out of their homes and instilling a sense of personal hygiene and cleanliness was a challenge and the volunteers had to really work on them to ensure the present state.

DLF Learning Excellence CentresTaking the education initiative ahead, DLF partnered with Pratham in May 2007 and set up DLF Learning Excellence Centres in 25 villages by involving the government schools, community teachers and introducing innovative teaching learning material. The main hurdles faced during the project were lack of adequate means of public transport and resistance from the local community to involve the women. However, these were overcome through a sustained education and awareness campaign conducted across the entire village community and by taking the village Panchayats into confidence. This is an ongoing project likely to benefit 1100 students over a period of one year.

DLF labour hutmentWhile all the big developers focus only on providing world-class facilities to their buyers DLF carried its social responsibility initiatives to the construction work sites in Gurgaon once it started construction of the DLF Township. At DLF it was felt that even though there had been tremendous improvement in construction technology and quality it was distressing to note that the people who actually make all the glitzy buildings were a neglected lot and often required to do so in inhuman conditions. The sight of construction workers and their children living in jhuggies without even the basic facilities at most of the construction sites is not uncommon. At DLF it was their constant endeavor to improve the living

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conditions of their construction workers by providing them all the basic necessities at the site itself by efficient and effective space management. DLF seized the initiative in this respect and became a pioneer in providing all necessary facilities to its construction workers on site when it tied up with Laing O Rourke for construction projects. It was decided that before commencement of the construction a suitable location be identified on site for construction of hutments to house the workforce for the entire duration of the project. Instead of constructing makeshift or temporary accommodation DLF sanctioned hefty budgets to build a mix of cemented hutments and dormitories for the workers. The entire labour hutment area was paved to ensure easy access even during the monsoons and the work of sanitation and housekeeping was outsourced to a third party namely M/s Lion Services. All the residential accommodation at the DLF labour hutment site is provided with electricity, water, fans, beds and linen and separate areas have been provided for toilets and washing. In order to take care of the children of the workers mobile crèches have been made available on site through a strategic tie up with an NGO named Mobile Creches. A subsidized canteen manned by a third party has also been made available on site to ensure hygienic and good quality food on site. Medical help is available on site along with a 24-hour ambulance to take care of emergencies. In order to improve the skills of the workers as well as train potential workers on site a non-profit residential "Apprentice Training Centre" for imparting skills in carpentry and masonry was started.

Rural Primary Health CentresIn March 2007, DLF decided to focus on another hitherto neglected but vital area – rural healthcare. It was decided to set up Rural Primary Health Centres in villages to provide free medical consultancy, health checkups and subsidized medicines to the villagers. The first Primary Health Centre was set up at Village Shikohpur in August 2007 in association with an NGO Deepalaya. It is proposed to set up six such centres in the present financial year.

Helping the Rural craftsmenWhile at one level DLF focused at initiatives for infrastructure augmentation, education and health at the same time it was felt that as a infrastructure creator DLF must also provide a forum for rural craftsmen to display their wares by bringing them closer to the urban consumers thereby increase their avenues of income. As part of this initiative in the retail malls set up in Gurgaon, wherein DLF was the pioneer in providing international standard shopping experience, DLF awarded free space to a few NGO's like Khushboo Welfare Society, India Vision Foundation and the Rashtriya Blind School and others to enable them to exhibit their products for awareness and to create awareness for the cause they espouse.

Vocational training centresAs part of its strategy to train and empower people with permanent skills thereby enabling them to earn their livelihood for times to come DLF has set up job linked vocational training centres in Hospitality, Customer Relations and Salels and IT enabled services. These training centres have been equipped with all necessary training infrastructures from computer labs to headphones and LCD projectors.

Development of Arya Samaj MandirDLF Commercial Developers Ltd. has contributed Rs.20 lacs towards the

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development of Arya Samaj Mandir in DLF City, Phase-II. This will not only help in over all development of the Mandir primises but also help the community at large wherein devotees can come and seek spiritual solace.

Environment ProgramsHaryana Urban Development Authority (HUDA) has consistently over the last seven years awarded DLF with "Excellence in Horticulture Preservation". A total of 47 awards have been received under various categories.

DLF has installed one of its kind gas-based power generation system at the Infinity Tower. Co-generation is also a part of this installation as we are utilising the waste heat for air-conditioning and are in effect saving about 25 per cent of power.

This year (July-August, 2007) DLF initiated an plantation drive in 21 villages of Haryana by involving the Government school children and the local Panchayats with support from the Forest Department .

DLF is in the process of switching its street lighting system to 36 watts CFL with electronic choke thereby saving 15-20 watts per street light.

Challenges faced while initiating CSR initiatives

a. Designing, developing and executing standard uniform facilities and guidelines at all construction sites

b. Identification of credible NGOs to run the various CSR programs.c. Securing active partnerships with the Panchayats in the Rural CSR

initiatives account of strong internal politics and affiliations.d. Securing participation of the entire community on account of Inter caste

politics operating in the villagese. Securing participation of girl child in the education programs on account

of lack of awareness and indifference to education of the girl child

Employees volunteering programmeBefore undertaking any CSR initiative in a region, the concerned employees in that region are contacted to understand the need of the area and CSR programmes are developed keeping in mind the identified need. Employees are further involved in monitoring of programmes to ensure effective delivery.

In the present financial year DLF is initiating a donation programme wherein the employees will contribute and donate old clothes and other household articles for the construction workers and their families employed at DLF construction sites.

Blood Donation camps are also being organised for blood donation by the employees in association with Lions Blood Bank.

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EXECUTIVE SUMMARY

D L F Ltd. Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010

Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths-Total income 289.06 495.83 479.78 1146.14 1430.72 6062.03Sales 270.02 472.92 442.04 983.94 1130.62 5530Income from financial services 11.67 19.81 33.76 159.43 294.74 517.83

Total expenses 278.12 453.42 412.09 915.04 1015.09 3481.38Raw material expenses 0 0 0 0 0 0Power, fuel & water charges 0.95 0.89 1.03 0.23 0.69 1.34Compensation to employees 15.71 21.41 33.34 16.76 44.83 144.17Indirect taxes 3.86 5.13 4.75 1.39 4.57 5.03Selling & distribution expenses 12.13 20.5 24.95 28.04 64.87 47.43Other operational exp. of indl. Enterprises 205.92 365.12 259.29 577.63 85.13 1830.46Other oper. exp. of non-fin. service enterprises 0 0 0 0 0 0

PBDITA 46.71 59.74 129.34 488 1129.04 3923.53PBDTA 41.73 50.83 99.39 352.01 630.03 3143.03PBT 39.2 48.07 96.87 348.99 621.47 3118.11PAT 26.95 35.48 67.69 228.52 406.91 2574.59

Net worth 283.91 317.82 383.93 644.93 652.8 11269.15Paid up equity capital (net of forfeited capital) 3.51 3.51 3.51 37.77 305.88 340.96Reserves & surplus 280.4 314.31 380.42 607.16 346.92 10928.19

Total borrowings 22.38 561.06 633.08 3013.89 6769.15 8386.28Current liabilities & provisions 1078.45 1155.38 1337.54 1358.49 3759.04 3753.2

Total assets 1391.22 2041.97 2362.85 5026.7 11205.04 23441.94Gross fixed assets 44 86.04 505.43 565.64 1030.62 3315.52Net fixed assets 18.64 59.34 478.64 536.4 993.61 3256.17Investments 167.41 177.27 173.82 1397.28 769.18 1839.83Current assets 1102.68 1402.31 997.12 1285.96 6069.75 11287.1Loans & advances 100.8 400.93 693.76 1722.42 3213.51 7042.69

Growth (%)

Total income

-17.5598209

71.5318619

-3.23699655

138.888657

24.8294275

323.704848

Total expenses

-11.0158375

63.0303466

-9.11516916

122.048582

10.9339482

242.962693

PBDITA

-24.8431215

27.8955256

116.504854

277.300139

131.360656

247.510274

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PAT

-21.7479675

31.6512059 90.78354

237.597873

78.0631892

532.717308

Net worth9.06192379

11.9439259

20.8010824

67.9811424

1.22028747

1626.27911

Total assets5.47935858

46.775492

15.7142367

112.738854

122.910458

109.208892

Profitability ratios (%)PBDITA Net of P&E/Total income net of P&E

15.084232

11.9815017

26.9533452

42.5240462

78.9130161

64.7263681

PAT Net of P&E/Total income net of P&E

8.12010996

7.08227311

14.0841248

19.8555042

28.3953381

42.4725444

PAT Net of P&E/Avg. net worth8.46700843

11.6563907

19.2290702

44.1809381

62.5553852

43.1895789

PAT/Avg. net worth9.90390092

11.7926645

19.2917706

44.4219816

62.7110416

43.1907532

PAT Net of P&E/Avg. total assets1.70026235

2.04299791

3.0634623

6.15138946

5.00131224

14.8614396

PAT/Avg. total assets1.98880513

2.0668824

3.07345136

6.18495037 5.013757

14.8618437

Liquidity ratios (times)

Current ratio1.00994669

1.17260785

0.72627155

0.7568032

1.42027639

1.50618777

Debt to equity ratio0.0788278

1.76533887

1.64894642

4.67320484

10.3694087

0.74418035

Interest cover8.08634538

6.34904602

4.22704508

3.55717332

2.2433819

4.99492633

Debtors (days)37.6260092

48.2645585 45.21627

5.66266744

32.3396676

54.0308906

Creditors (days)1530.08289

959.566552

1352.44023

672.245544

3886.91074

427.154003

Efficiency ratios (times)

Total income / Avg. total assets0.21331503

0.28884507

0.21784318

0.31020563

0.17628671

0.34993122

Total income / Compensation to employees

18.3997454

23.1588043

14.3905219

68.3854415

31.9143431

42.0477908

21


CHAPTER 2

COMPARATIVE

BALANCESHEET

&ANALYSIS

OF

BALANCESHEET

22


Chapter:2 COMPARISON & ANALYSIS OF BALANESHEET

SOURCES OF FUNDS :-

EXHIBIT 2.1LIABILITY Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10

SOURCES OF FUNDS

Owner's Fund

Equity Share Capital 3.5 3.51 37.77 305.88 340.96

Share Application Money 0 0 0 0 0

Preference Share Capital 0 0 0 0 0

Reserves & Surplus 453.8 380.42 607.16 346.92 10,928.19

Loan Funds

Secured Loans 557.9 630.15 3,010.93 6,242.81 4,945.91

Unsecured Loans 3.2 2.95 2.99 526.48 3,440.49

Total 1,018.40 1,017.03 3,658.85 7,422.09 19,655.55

INTERPRETATION SOURCES OF FUNDS :-

(A)EQUITY SHARE CAPITAL:-

EXHIBIT 2.1.1

Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10


Chart 2.1.1

23

Equity Share Capital

0

50

100

150

200

250

300

350

400

Mar ' 06 Mar '07 Mar ' 08 Mar ' 09 Mar ' 10

Equity ShareCapital


INTERPRETATION: - The company have very high increasing in equity share capital.the company more than 100% growth rate in Equity Share Capital.in the year 2010 it is 340.96crore & it is 3.5 crores in 2006 ..in equity share capital

(B)Reserves & Surplus:-EXHIBIT 2.1.2


Reserves & Surplus 453.8 380.42 607.16 346.92 10,928.19

INTERPRETATION: -The company is maintaining good reserves and surplus Is 453.80 crore in the year of 2006. than company is

24

Reserves & Surplus

0

2000

4000

6000

8000

10000

12000

Mar '06

Mar ' 07

Mar '08

Mar '09

Mar '10

Reserves & Surplus

Secured Loans

3000

4000

5000

6000

7000

Secured Loans


increasing reserves in march 2010 with very high rate is 10928.19. so company is maintaining very high reserves.

Chart 2.1.1

(C) Secured Loans:-

EXHIBIT 2.2


Secured Loans 557.9 630.15 3,010.93 6,242.81 4,945.91

Chart 2.1.1

25

Unsecured Loans

0

500

1000

1500

2000

2500

3000

3500

4000

Mar '06

Mar ' 07

Mar '08

Mar '09

Mar '10

Unsecured Loans


INTERPRETATION: -Company is more using secured loan. In previously company is using more loan money for company. In 2009 it is highest as 6242.81.

(D)Unsecured Loans:-

EXHIBIT 2.2


Unsecured Loans 3.2 2.95 2.99 526.48 3,440.49

Chart 2.1.1

USES OF FUNDS

26


INTERPRETATION: -company have some unsecured loan in the year 2006 is 3.2 is very growing in 2010 is 3440.49.so company must maintain the situation and reduce unsecured loan.

USES OF FUNDS:-

USES OF FUNDS Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10Fixed Assets

Gross Block 83.6 98.8 108.91 365.58 1,533.72

Less : Revaluation Reserve 8.6 0 0 0 0

Less : Accumulated Depreciation 26.7 26.79 29.24 37.01 59.34

Net Block 48.3 72 79.67 328.57 1,474.37

Capital Work-in-progress 2.4 406.63 456.73 665.03 1,781.79

Investments 177.3 173.82 1,397.28 769.17 1,839.83

Net Current Assets

27

USES OF FUND

0

2000

4000

6000

8000

10000

12000

14000

16000

Mar '066

Mar ' 07

Mar '08

Mar '09

Mar '10

FIXED ASSETS

Capital Work-in-progressInvestments

Total Net CurrentAssets


Current Assets, Loans & Advances

1,392.70 1,710.39 3,092.12 9,442.25 18,345.94

Less : Current Liabilities & Provisions

602.3 1,345.82 1,366.95 3,782.93 3,786.38

Total Net Current Assets 790.4 364.57 1,725.17 5,659.32 14,559.56

Miscellaneous expenses not written

0 0 0 0 0

Total 1,018.40 1,017.02 3,658.85 7,422.09 19,655.55

EXHIBIT

(A)FIXED ASSETS :-EXHIBIT 2.2

USES OF FUNDS Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10FIXED ASSETS 48.3 72 79.67 328.57 1,474.37

Chart 2.1.1

28

FIXED ASSETS

0

200

400

600

800

1000

1200

1400

1600

Mar '06

Mar ' 07

Mar '08

Mar '09

Mar '10

FIXED ASSETS


INTERPRETATION: - company’s assets are 48.3 in 2006 but it is increase at 1474.37in 2010 so it is high increasing in assets.I(B)Capital Work-in-progress :-

EXHIBIT 2.2

USES OF FUNDS Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10Capital Work-in-progress 2.4 406.63 456.73 665.03 1,781.79

Chart 2.1.1

29

Capital Work-in-progress

0200

400

600

800

1000

1200

1400

1600

1800

2000

Mar '06

Mar ' 07

Mar '08

Mar '09

Mar '10


Investments

0200

400

600

800

1000

1200

1400

1600

1800

2000

Mar ' 06 Mar '07 Mar ' 08 Mar ' 09 Mar ' 10

Investments


INTERPRETATION: - company’s work in progress is also in increasing stage. (C) Investments:- EXHIBIT 2.2

USES OF FUNDS Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10Investments 177.3 173.82 1,397.28 769.17 1,839.83

Chart 2.1.1

INTERPRETATION: -company’s investment is also at increasing stage it is 1839.83 in 2010. so company have good security.

30

Total Net Current Assets

0

2000

4000

6000

8000

10000

12000

14000

16000

Mar '06

Mar ' 07

Mar '08

Mar '09

Mar '10

Total Net CurrentAssets


(D) Total Net Current Assets:- EXHIBIT 2.2

USES OF FUNDS Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10Total Net Current Assets 790.4 364.57 1,725.17 5,659.32 14,559.56

Chart 2.1.1

INTERPRETATION: -Total net current assets is 790.4 in 2004 while it is increasing stage. So company’s liquidity is very high like 14559.56 in 2010.

31


CHAPTER 3

COMPARISON &ANALYSIS OFPROFIT & LOSS ACCOUNT

32

INCOME

0

1000

2000

3000

4000

5000

6000

Mar2006

Mar2007

Mar2008

Mar2009

Mar2010

Rs

IN

CR

OR

E

Sales

Industrialsales Income fromnon-financialservices Income fromfinancialservices Interest

Other income


Chapter:3 INCOME STATEMENT

EXHIBIT 3.1

INCOME ANALYSIS :- Chart 3.1

D L F Ltd. Mar 2006

Mar 2007

Mar 2008

Mar 2009

Mar 2010

Rs. Crore 12 mths 12 mths 12 mths 12 mths 12 mths-Total income 495.83 479.78 1146.14 1430.72 6062.03Sales 472.92 442.04 983.94 1130.62 5530Industrial sales 445.77 412.24 948.83 1092.33 5490.08Income from non-financial services

27.15 29.8 35.11 38.29 39.92

Income from financial services 19.81 33.76 159.43 294.74 517.83Interest 10.18 23.95 154.54 288.67 426.69Dividends 0 0 0 0.28 85.33Treasury operations 0.01 0 0 0.05 0.56Other income 2.45 3.25 1.3 4.1 13.78Prior period income & extraordinary income

0.65 0.73 1.47 1.26 0.42

Change in stock -6.93 0 -2.58 -8.72 -6.06

33

SALES

0

2000

4000

6000

8000

10000

12000

Mar2006

Mar2007

Mar2008

Mar2009

Mar2010

Industrial sales

Sales


Total income:-EXHIBIT 3.1.1

D L F Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010Total income 495.83 479.78 1146.14 1430.72 6062.03Sales 472.92 442.04 983.94 1130.62 5530Industrial sales 445.77 412.24 948.83 1092.33 5490.08

Chart 3.1.1

INTEREST:-EXHIBIT 3.1.2

D L F Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010

Interest 10.18 23.95 154.54 288.67 426.69

Chart 3.1.2

34

Interest

0

50

100

150

200

250

300

350

400

450

Mar2006

Mar2007

Mar2008

Mar2009

Mar2010

Interest


TOTAL EXPENDITURE:- EXHIBIT 3.2.1


Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths

Total expenses 453.42 412.09 915.04 1015.09 3481.38

Raw material expenses 0 0 0 0 0

Packaging expenses 0 0 0 0 0

Purchase of finished goods 0 0 0 0 0

Power, fuel & water charges 0.89 1.03 0.23 0.69 1.34

Compensation to employees 21.41 33.34 16.76 44.83 144.17

Indirect taxes 5.13 4.75 1.39 4.57 5.03

Royalties, technical know-how fees, etc. 0 0 0 0 0

Lease rent & other rent 0.76 0.63 0.22 0.77 2.43

Repairs & maintenance 3.8 3.05 2.87 5 10.55

Insurance premium paid 0.11 0.23 0.16 1.12 1.69

Outsourced mfg. jobs (incl. job works, etc.) 0 0 0 0 0

Outsourced professional jobs 3.64 7.26 7.59 52.65 63.44

Directors' fees 0 0 0 0.19 1.61

Selling & distribution expenses 20.5 24.95 28.04 64.87 47.43

Travel expenses 3.95 4.76 2.97 14.53 22.35

Communication expenses 1 1.41 0.57 1.35 3.3

Printing & stationery expenses 0.9 1.57 1.29 2.7 2.67

Miscellaneous expenses 1.33 2.37 4.4 3.48 13.14

Other operational exp. of indl. enterprises 365.12 259.29 577.63 85.13 1830.46Other oper. exp. of non-fin. service enterprises 0 0 0 0 0

Share of loss in subsidiaries/JVs,etc. 0.03 0 0 0.06 3.37

Lease equalisation adjustment 0 0 0 0 0

Loss on securitisation of assets/loans 0 0 0 0 0

35


Fee based financial service expenses 0.5 3.12 10.16 53.26 22.04

Treasury operations expenses 0.01 0 0.03 0.02 0.02

Total provisions 0 1.69 0.14 0.01 0.27

Write-offs 0.45 0.48 0.88 0.88 0.84

Less: Expenses capitalised 0.61 0 0 43.4 44.06

Less: DRE & expenses charged to others 0 0 0 0 0

Prior period & extraordinary expenses 0.24 0.51 0.23 0.25 0.35

Interest paid 8.91 29.95 135.99 499.01 780.5

Financial charges on instruments 0 0 0 0 0

Expenses incurred on raising deposits/debts 0 0 0 0 0

Depreciation 2.76 2.52 3.02 8.56 24.92

Amortisation 0 0 0 0 0

Provision for direct taxes 12.59 29.18 120.47 214.56 543.52

PROFIT :- EXHIBIT3.2.2



PAT 35.48 67.69 228.52 406.91 2574.59

PBDITA 59.74 129.34 488 1129.04 3923.53

PBDTA 50.83 99.39 352.01 630.03 3143.03

PBT 48.07 96.87 348.99 621.47 3118.11

CHAPTER 4

36


COMMON SIZE

STATEMENT

COMMON SIZE ANALYSISEXHIBIT 4.1

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

SOURCES OF FUNDS 12 months

12 months

12 months

12 months

12 months

37


Owner's Fund


Share Application Money

0 0 0 0 0

Preference Share Capital

0 0 0 0 0

Reserves & Surplus 55.6 4.67 16.594 37.4 44.56

Loan Funds

Secured Loans 25.16 84.11 82.29 61.96 54.782

Unsecured Loans 17.5 7.09 0.0817 0.29 0.3142

Total 100 100 100 100 100

USES OF FUNDS

Fixed Assets

Gross Block

Less : Revaluation ReserveLess : Accumulated Depreciation

0 0 0 0 0

Net Block 7.5 4.427 2.1775 7.08 4.7427


9.07 8.96 12.483 39.98 0.2357

Investments 9.36 10.36 38.19 17.09 17.41

Net Current Assets

Current Assets, Loans & Advances

0 0 0 0 0


0 0 0 0 0


74.07 76.25 47.15 35.85 77.612


0 0 0 0 0

Total 100 100 100 100 100

INTERPRETATION:-(A)Sources of Fund: The common size statement shows that the

shareholder’s fund of the company in year 2005-06 was 44.56% & in year 2006-07 it was also increased up to 37.4% but in year 2007-08 was decreased up to 16.60% & in the year 2008-09it increase to 4.67% & in the year 2009-10 it was highest increase i.e. by 55.6% the borrowed fund of the company goes on increasing in this year. It indicates that the company is less dependent on borrowed funds than shareholder’s fund.

38

sources of fund 2006

0.3437, 0

%54.782, 55

%

0.3142, 0

%

44.56, 45%


Reserves & SurplusSecured

LoansUnsecured Loans


0.34

61.96

0.29

37.4

Equity Share Capital Reserves & Surplus

Secured Loans Unsecured Loans


Chart 3.2.1

Chart 3.2.2

Chart 3.2.1

39


1.0323

82.29

0.0817

16.594



sources of fund2009

4.12

84.11

7.09

4.67




Chart 3.2.1

Chart 3.2.1

40

sources of fund2010

1.73

25.16

17.5

55.6



application of fund 20064.7427, 5%

17.41, 17%

77.612,

78%

0.2357, 0%

Fixed Assets Capital Work-in-progress

Investments Total Net Current Assets


(B) APPLICAYION OF FUND:-

1. Fixed Assets: According to common size statement, fixed assets of the company in years 2005-06, 2006-07, 2007-08, 2008-09 it were 7.5%,4.427%,2.1775%, 7.08% & 4.74% respectively. It is happening due to sales has decreasing trend in this year.

Chart 3.2.1

Chart 3.2.1

41

application of fund 2007

7.08, 7%

17.09, 17%

35.85, 36%

39.98, 40%




2.1775, 2%

38.19, 38%

47.15, 48%12.483,

12%




Chart 3.2.1

Chart 3.2.1

42


4.427, 4%

10.36, 10%

76.25, 77%

8.96, 9%



Application of fund 2010 , 0%

9.07, 9%

9.36, 9%74.07, 74%

7.5, 8%

Fixed Assets Fixed Assets

Capital Work-in-progress Investments



Chart 3.2.1

2. Investments: The investments of the company in year 2005-06 was 17.41% but it was decreased by 17.09% in year 2006-07 but it has increased by 38.19% in year 2004-05. In the year 2009-10 it was highest increase of investment i.e. by 9.97%. But in the year 2008-09 it was decrease to 4.93%. It indicates that investments are stated at cost. If investment is more then company get more return.

3. Current Liabilities & Current Assets: the current liabilities of the company go on increasing every year. It means that there was decrease in working capital that affect the liquidity position of the company. The current assets has also increased every year that is 54.99%, 57.09%, 63.73% for the year 2005-06, 2006-07, 2007-08 accordingly.

43


The analysis of various figures shows that the company has satisfactory long term & short-term financial position. It shows financial position of company is sound.

COMMON SIZE ANALYSIS PROFIT & LOSS

Partiular Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Sales and Total Income 100% 100% 100.00 % 100% 100%

Total Expenses 87.83% 71.95% 56.41 % 30.59% 39.97%

Operating Profit 13.84% 19.62% 26.84 % 46.36% 50.76%

PBT (Post Extra-ord Items) 7.8% 20.37% 30.55% 43.75% 51.53%

Tax 2.89% 6.13% 34.52 15.11% 8.98%

Reported Net Profit 7.16% 14.242% 19.91 % 28.57% 42.54%

44

PROFIT STATEMENT2006

87.83, 73%

7.8, 7%

2.89, 2%

7.16, 6%13.84,

12%

Total Expenses

Operating ProfitPBT (Post Extra-ord

Items)TaxReported Net

Profit


71.95, 54%

20.37, 15%

6.13, 5%

14.241538, 11

%

19.62, 15%

Total Expenses



Profit

PROFIT STATEMENT 2008

56.41 ,

33%

30.55 ,

18%

34.52 ,

21%

19.91 ,

12%

26.84 ,

16%Total

ExpensesOperating ProfitPBT (Post Extra-ord


Profit


Chart 3.2.1

Chart 3.2.1

Chart 3.2.1

45


30.59

43.75

15.11

28.57

46.36

Total Expenses



Profit


Chart 3.2.1

Comment on Profit & Loss Account:1. Sales & total income: the common size statement shows

that the main source of income for the company is sales. In all the year it is assumed as 100%

2. Total Expenditure: The total expenditure of the company has been found continuously decrease up to year 2008-09. It has been increased due to increase in the total amount of sales. Financial expense is also decreased it is favorable sign for the company. so company is maintaining lo expense policy.

Partiular Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Total Expenses 87.83783784 71.95237394 56.40693399 30.58954394 39.9691001

Chart 3.2.1

46

Total Expenses

010

20

30

40

50

60

70

80

90

100

Mar'06

Mar'07

Mar'08

Mar'09

Mar'10

TotalExpenses

PBT (Post Extra-ord Items)

0

10

20

30

40

50

60

Mar'06

Mar'07

Mar'08

Mar'09

Mar'10

PBT (PostExtra-ordItems)


3. Profit before Tax: PBT in year 2006 is 6.31%. It was in year 2007, 2008 2009 &2010it is 7.80,20.37,30.55, 43.75& 51.52 respectively.company have very high amount of profit ith increasing rate.

Partiular Mar '06 Mar '07 Mar '08 Mar '09 Mar '10PBT (Post Extra-ord Items) 7.801532876 20.37991459 30.55331816 43.75255206 51.52500083

Chart 3.2.1

47

Reported Net Profit

0

5

10

15

20

25

30

35

40

45

Mar'06

Mar'07

Mar'08

Mar'09

Mar'10

Reported NetProfit


4. Profit after Tax: According to common size statement PAT of the company for the year 2006 is 7.16% & than it has been increased to 14.24% in 2007 and than it has been reduced to 28.56%in the year 2009 & 42.53 in year 2010.

Reported Net Profit :

Partiular Mar '06 Mar '07 Mar '08 Mar '09 Mar '10Reported Net Profit 7.1601452 14.241538 19.91245 28.566903 42.53941

Chart 3.2.1

CHAPTER 5

48


TREND ANALYSIS

TREND ANALYSIS OF PROFIT & LOSS A/C

PARTICULAR MAR'06 MAR'07 MAR'08 MAR'09 MAR'10

Income

Sales Turnover 10083.14

192.30 222.19 1108.70

Excise Duty 0 0 0 0 0

Net Sales 100 83.14 192.30 222.19 1108.70

Other Income 0 0 0 0 0

Stock Adjustments 0 0 0 0 0

Total Income 100 95.87 230.37 286.49 1220.61

Expenditure

Raw Materials 0 0 0 0 0

Power & Fuel Cost 0 0 0 0 0

Employee Cost 100 155.70 78.31 209.43 484.95

Other Manufacturing Expenses 100 68.96 155.48 63.99 576.39

Selling and Admin Expenses 100 0 0 0 0

49


Miscellaneous Expenses 100 15.07 14.62 37.01 65.07

Preoperative Exp Capitalised 0 0 0 0 0

Total Expenses 100 78.53 147.94 99.77 555.41

Operating Profit 100 111.31 508.45 1091.94 5094.61

PBDIT 100 221.11 825.73 1635.02 6024.79

Interest 100 351.80 1554.78 3789.89 4762.23

PBDT 100 196.97 691.10 1237.07 6257.95

Depreciation 100 121.42 139.28 337.14 917.14

Other Written Off 0 0 0 0 0

Profit Before Tax 100 201.37 723.22 1289.45 6481.97

Extra-ordinary items 100 -0.21 -11.78 -13.16 -3.82

PBT (Post Extra-ord Items) 100 250.46 902.22 1606.69 8061.50

Tax 100 231.58 956.11 1702.85 4313.65

Reported Net Profit 100 190.70 640.67 1143.01 7251.83

Total Value Addition 100 78.53 147.93 99.77 555.41

Preference Dividend 0 0 0 0 0

Equity Dividend 0 0 0 0 0

Corporate Dividend Tax 0 0 0 0 0

Per share data (annualised) 0 0 0 0 0

Shares in issue (lakhs) 100 100 1076.62 43598.09 48598.43

Earning Per Share (Rs) 100 190.69 59.50 2.61 14.92

Equity Dividend (%) 0 0 0 0 0

Book Value (Rs) 100 83.95 13.09 0.32 5.07

INTERPRETATION OF TREND ANALYSIS:-

(A)Sales Turnover :-


Sales Turnover 100 83.14 192.3 222.19 1108.7

Chart 3.2.1

50

Sales Turnover

100

83.14

192.3

222.19

1108.7

0

200

400

600

800

1000

1200

MAR'06

MAR'07

MAR'08

MAR'09

MAR'10

MAR'06

MAR'07

MAR'08

MAR'09

MAR'10


(B)Total Income


Total Income 100 95.87 230.37 286.49 1220.61

Chart 3.2.1

51

Total Income

100

95.87

230.37

286.49

1220.61

0

200

400

600

800

1000

1200

1400

MAR'06

MAR'07

MAR'08

MAR'09

MAR'10

MAR'06

MAR'07

MAR'08

MAR'09

MAR'10

Operating Profit

100

111.31

508.45

1091.94

5094.61

0

1000

2000

3000

4000

5000

6000

MAR'06

MAR'07

MAR'08

MAR'09

MAR'10

MAR'06

MAR'07

MAR'08

MAR'09

MAR'10


(C) Operating Profit


Operating Profit 100 111.31 508.45 1091.94 5094.61

Chart 3.2.1

(D)Reported Net Profit

52

Reported Net Profit

100

190.7

640.67

1143.01

7251.83

0

1000

2000

3000

4000

5000

6000

7000

8000

MAR'06

MAR'07

MAR'08

MAR'09

MAR'10

MAR'06

MAR'07

MAR'08

MAR'09

MAR'10



Reported Net Profit 100 190.7 640.67 1143.01 7251.83

Chart 3.2.1

(E) Earning Per Share (Rs)


Earning Per Share (Rs) 100 190.69 59.5 2.61 14.92

Chart 3.2.1

53

Earning Per Share (Rs)

100

190.69

59.5

2.61

14.920

50

100

150

200

250

MAR'06

MAR'07

MAR'08

MAR'09

MAR'10

MAR'06

MAR'07

MAR'08

MAR'09

MAR'10


TREND ANALYSIS OF BALANCESHEET

54


Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Sources Of Funds

Total Share Capital 100% 100.28% 1079.14% 8739.42% 9741.71%

Equity Share Capital 100% 100.28% 1079.14% 8739.42% 9741.71%

Share Application Money 100% 0 0 0 0

Preference Share Capital 100% 0 0 0 0

Reserves 100% 83.82% 133.79% 76.44% 2408.15%

Revaluation Reserves 100% 0 0 0 0

Networth 100% 82.40% 138.42% 140.11% 2418.79%

Secured Loans 100% 112.95% 539.68% 1118.98% 886.52%

Unsecured Loans 100% 92.18% 93.43% 16452.5%107515.31%

Total Debt 100% 112.83% 537.14% 1206.43% 1494.63%

Total Liabilities 100% 99.02% 356.26% 722.69% 1913.88%

Application Of Funds

Gross Block 100% 118.18% 130.27% 437.29% 1834.59%

Less: Accum. Depreciation 100% 100.33% 109.51% 138.61% 222.24%%Net Block 100% 126.55% 140.01% 577.45% 2591.17%

Capital Work in Progress 100% 16942.91% 19030.41% 27709.58% 74241.25%Investments 100% 98.03% 788.08% 433.82% 1037.69%Inventories 100% 93.04% 61.13% 554.39% 767.69%

Sundry Debtors 100% 3.77% 25.16% 164.72% 1386.99%

Cash and Bank Balance 100% 47.75% 111.12% 180.37% 9047.00%

Total Current Assets 100% 81.89% 57.46% 503.61% 940.95%

Loans and Advances 100% 191.54% 489.08% 953.38% 1974.95%

Fixed Deposits 100% 0 0 0 0

Total CA, Loans & Advances 100% 122.81% 222.02% 677.98% 1317.29%Deffered Credit 100% 0 0 0 0

Current Liabilities 100% 213.71% 198.79% 507.99% 420.25%Provisions 100% 0 0 0 0

Total CL & Provisions 100% 223.44% 226.95% 628.07% 628.65%

Net Current Assets 100% 46.12% 218.26% 716.00% 1842.05%

Miscellaneous Expenses 100% 0 0 0 0Total Assets 100% 99.029% 356.26% 722.69% 1913.88%

Contingent Liabilities 100% 0 0 0 0Book Value (Rs) 100% 83.95% 13.09% 0.32% 5.07%

(A)Equity Share Capital

PARTICULER Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Equity Share Capital 100% 100.28% 1079.14% 8739.42% 9741.71%

55


100%

100.28%

1079.14%

8739.42%

9741.71%

0%

2000%

4000%

6000%

8000%

10000%

12000%




Chart 3.2.1

(B)Net worth


Net worth 100% 82.40% 138.42% 140.11% 2418.79%

Chart 3.2.1

56

Networth

100%

82.40%

138.42%

140.11%

2418.79%

0%

500%

1000%

1500%

2000%

2500%

3000%


Networth

Unsecured Loans

100%

92.18%

93.43%

16452.50%

107515.31%

0%

20000%

40000%

60000%

80000%

100000%

120000%


Unsecured Loans


(C)Unsecured Loans


Unsecured Loans 100% 92.18% 93.43% 16452.50% 107515.31%

Chart 3.2.1

(D)Total Debt

57

Total Debt

100%

112.83%

537.14%

1206.43%

1494.63%

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%


Total Debt



Total Debt 100% 112.83% 537.14% 1206.43% 1494.63%

Chart 3.2.1

APPLICATION OF FUND :-

(A) NET FIXED ASSETS :-


NET FIXED ASSETS 100% 126.55% 140.01% 577.45% 2591.17%

Chart 3.2.1

58

NET FIXED ASSETS

100%

126.55%

140.01%

577.45%

2591.17%

0%

500%

1000%

1500%

2000%

2500%

3000%


NET FIXED ASSETS

Investments

100%

98.03%

788.08%

433.82%

1037.69%

0%

200%

400%

600%

800%

1000%

1200%


Investments


(B)Investments :-


Investments 100% 98.03% 788.08% 433.82% 1037.69%

Chart 3.2.1

(c)Sundry Debtors:-

59

Sundry Debtors

100% 3.77

%

25.16%

164.72%

1386.99%

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%


Sundry Debtors



Sundry Debtors 100% 3.77% 25.16% 164.72% 1386.99%

Chart 3.2.1

(D)Net Current Assets :-


Net Current Assets 100% 46.12% 218.26% 716.00% 1842.05%

Chart 3.2.1

60

Net Current Assets

100%

46.12%

218.26%

716.00%

1842.05%

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

1800%

2000%


Net Current Assets


CHAPTER 2

HORIZONTAL ANALYSIS

Financial statements present comparative uniformities for the current year and the previous year. A simple approach to financial statement analysis, known as horizontal analysis is to calculate amount changes & percentage changes from the previous year to the current year.

Relative = Current year amount – previous year amountAbsolute (%) = ((Current year – Previous Year) \ Previous Year) x 100

61

0

200

400

600

800

1000

1200

-

Total

incom

e

Total

expe

nses

PBDITA

PBDTA

PBT

PAT

Increase/(Decrease)PercentageIncrease/(Decrease)Amount Mar 2007 12 mths

Mar 2006 12mths


COMPARATIVE PROFIT & LOSS ACCOUNT OF DLF LTD FOR THE YEAR ENDED31st March 2006-07

D L F Ltd. Mar 2006 Mar 2007 Increase/(Decrease)

Rs. Crore 12 mths 12 mths Amount Percentage

-

Total income 495.83 479.78 -16.05 -3.236997

Total expenses 453.42 412.09 -41.33 -9.115169

PBDITA 59.74 129.34 69.6 116.50485

PBDTA 50.83 99.39 48.56 95.534133

PBT 48.07 96.87 48.8 101.51862

PAT 35.48 67.69 32.21 90.78354

Chart 3.2.1

In 2007, the income decreased by -3.23% over 2006 & expense is also decreased by -9.112%.

Increase in dependiture by -3.23% that is less then the increase in income by -9.11%.

Other income decreased by 21.76% but depreciation & financial expenditure decreased by respectively.

This year sales, expenditure & profit decrease compare to the last year because of company introducing some engines. So that decreases in expenditure and profit.

COMPARATIVE PROFIT & LOSS ACCOUNT OF

62

0

500

1000

1500

2000

2500

3000

-

Total

incom

e

Total

expe

nses

PBDITA

PBDTA

PBT

PAT

Increase/(Decrease)PercentageIncrease/(Decrease)Amount Mar 2008 12 mths

Mar 2007 12 mths


DLF LTD FOR THE YEAR ENDED31st March 2007-08



-

Total income 479.78 1146.14 666.36 138.88%

Total expenses 412.09 915.04 502.95 122.04%

PBDITA 129.34 488 358.66 277.30%

PBDTA 99.39 352.01 252.62 254.17%

PBT 96.87 348.99 252.12 260.26%

PAT 67.69 228.52 160.83 237.59%

Chart 3.2.1

In 2008, the income increased by 138.88% over 2007 & expense is also increased by 122.04%.

Increase in ependiture by 122.04% that is less then the increase in income by 138.88%.

Other income increased by 237.59% but depreciation & financial expenditure decreased by respectively.

This year sales, expenditure & profit decrease compare to the last year because of company introducing some engines. So that decreases in expenditure and profit.

63

0

500

1000

1500

2000

2500

3000

3500

-

Total

incom

e

Total

expe

nses

PBDITA

PBDTA

PBT

PAT

Increase/(Decrease)PercentageIncrease/(Decrease)Amount Mar 2009 12mths

Mar 2008 12mths



D L F Ltd. Mar 2008 Mar 2009Increase/(Decrease)


-

Total income 1146.14 1430.72 284.58 24.829427

Total expenses 915.04 1015.09 100.05 10.933948

PBDITA 488 1129.04 641.04 131.36066

PBDTA 352.01 630.03 278.02 78.980711

PBT 348.99 621.47 272.48 78.076736

PAT 228.52 406.91 178.39 78.063189

Chart 3.2.1

64

0

2000

4000

6000

8000

10000

12000

14000

-

Total

incom

e

Total

expe

nses

PBDITA

PBDTA

PBT

PAT

Increase/(Decrease)PercentageIncrease/(Decrease)Amount Mar 2010 12mths

Mar 2009 12mths





-

Total income 1430.72 6062.03 4631.31 323.70485

Total expenses 1015.09 3481.38 2466.29 242.96269

PBDITA 1129.04 3923.53 2794.49 247.51027

PBDTA 630.03 3143.03 2513 398.8699

PBT 621.47 3118.11 2496.64 401.73138

PAT 406.91 2574.59 2167.68 532.71731

Chart 3.2.1

65

Profit analysis

01000

2000

3000

4000

5000

6000

7000

Total

incom

e

Total

expe

nses

PBDITA

PBDTA

PBT

PAT

Rs

(in

cr

ore

)

Mar 2006

Mar 2007

Mar 2008

Mar 2009

Mar 2010


COMPARATIVE PROFIT & LOSS ACCOUNT OFDLF LTD FOR LAST FIVE YEARS

D L F Ltd. Mar2006 Mar2007 Mar 2008 Mar 2009 Mar 2010Rs. Crore 12 mths 12 mths 12 mths 12 mths 12 mthsTotal income 495.83 479.78 1146.14 1430.72 6062.03Total expenses 453.42 412.09 915.04 1015.09 3481.38PBDITA 59.74 129.34 488 1129.04 3923.53PBDTA 50.83 99.39 352.01 630.03 3143.03PBT 48.07 96.87 348.99 621.47 3118.11PAT 35.48 67.69 228.52 406.91 2574.59

STATUS OF INCOME, EXPENDETURE AND PROFIT IN FIVE YEARSChart 3.2.1

COMPARATIVE CHANGE IN PROFIT ( IN PERCENTAGE )

66

-100

0

100

200

300

400

500

600

Total

incom

e

Total

expe

nses

PBDITA

PBDTA

PBT

PAT

2006-072007-082008-092009-10


Particular 2006-07 2007-08 2008-09 2009-10Total income -3.23 138.88 24.82 323.70

Total expenses -9.11 122.04 10.93 242.96

PBDITA 116.50 277.30 131.36 247.51

PBDTA 95.53 254.17 78.98 398.86

PBT 101.51 260.26 78.07 401.73

PAT 90.78 237.59 78.06 532.71

Chart 3.2.1

IN THE GIVEN FOUR YEAR’S INFORMATION E CAN CONCLUDE :-

IN 2006-07 THE COMPARATIVELY ALL THE CHANGE IS NOT GOOD AS COMPARE TO OTHERS.

IN EXPENSES OF ALL THE INCREASE & DECREASE -9.11,122.04,10.93 & 242.96

YEAR TO YEARSO COMPANY MAINTAIN THEIR EXPENSES.IN THE PROFIT SITUATION COMPANY IS MAINTAINING GOOD PROFITSRUCTURE WITH VERY HIGH RATE

COMPARATIVE BALANCESHEET OF DLF LTD AS ON MARCH 31 2007-08

BALANCESHEET Mar ' 08 Mar ' 07 INCREASE/

67


DECREACESOURCES OF FUNDS

AmountPercentage

Owner's FundEquity Share Capital 37.77 3.51 34.26 976.0683761Share Application Money 0 0 0 0Preference Share Capital 0 0 0 0Reserves & Surplus 607.16 380.42 59.60254456Loan Funds 0 0Secured Loans 3,010.93 630.15 2380.78 377.8116322Unsecured Loans 2.99 2.95 0.04 1.355932203Total 3,658.85 1,017.03 2641.82 259.7583159

0 0USES OF FUNDS 0 0Fixed Assets 0 0Gross Block 108.91 98.8 10.11 10.23279352Less : Revaluation Reserve 0 0 0 0Less : Accumulated Depreciation

29.24 26.792.45 9.145203434

Net Block 79.67 72 7.67 10.65277778Capital Work-in-progress 456.73 406.63 50.1 12.32078302

0 0Investments 1,397.28 173.82 1223.46 703.8660683

0 0Net Current Assets 0 0Current Assets, Loans & Advances

3,092.12 1,710.391381.73 80.78449944


1,366.95 1,345.8221.13 1.570046514

Total Net Current Assets 1,725.17 364.57 1360.6 373.2067916Miscellaneous expenses not written

0 00 0

Total 3,658.85 1,017.02 2641.83 259.7618533Note : 0 0Book Value of Unquoted Investments

1,397.28 173.821223.46 703.8660683

Market Value of Quoted Investments

0 00 #DIV/0!

Contingent liabilities 1,643.36 502.91 1140.45 226.7701975Number of Equity shares outstanding (in Lacs)

377.68 35.08342.6 976.6248575

COMPARATIVE BALANCESHEET OF DLF LTD AS ON MARCH 31 2006-07

BALANCESHEET Mar ' 07 Mar ' 06 INCREASE/DECREACE

SOURCES OF FUNDS

AmountPercentage

68


Owner's FundEquity Share Capital 3.51 3.5 0.01 0.285714286Share Application Money 0 0 0 0Preference Share Capital 0 0 0 0Reserves & Surplus 380.42 453.8 -16.170119Loan Funds 0 0Secured Loans 630.15 557.9 72.25 12.95034953Unsecured Loans 2.95 3.2 -0.25 -7.8125Total 1,017.03 1,018.40 -1.37 -0.134524745

0 0USES OF FUNDS 0 0Fixed Assets 0 0Gross Block 98.8 83.6 15.2 18.18181818Less : Revaluation Reserve 0 8.6 -8.6 0Less : Accumulated Depreciation

26.79 26.70.09 0.337078652

Net Block 72 48.3 23.7 49.06832298Capital Work-in-progress 406.63 2.4 404.23 16842.91667

0 0Investments 173.82 177.3 -3.48 -1.962774958

0 0Net Current Assets 0 0Current Assets, Loans & Advances

1,710.39 1,392.70317.69 22.81108638


1,345.82 602.3743.52 123.4467873

Total Net Current Assets 364.57 790.4 -425.83 -53.87525304Miscellaneous expenses not written

0 00 0

Total 1,017.02 1,018.40 -1.38 -0.135506677Note : 0 0Book Value of Unquoted Investments

173.82 177.3-3.48 -1.962774958

Market Value of Quoted Investments

0 00 0

Contingent liabilities 502.91 0 502.91 0Number of Equity shares outstanding (in Lacs)

35.08 35.080 0

SOURCES OF FUNDS Mar ' 10 Mar ' 09

AmountPercentage

Owner's Fund Equity Share Capital 340.96 305.88

35.08 11.46855Share Application Money

0 00 0

Preference Share Capital

0 00 0

Reserves & Surplus 10,928.19 346.92 3050.061

Loan Funds 0 0Secured Loans 4,945.91 6,242.81 -1296.9 -20.7743

69


Unsecured Loans 3,440.49 526.48 2914.01 553.4892Total 19,655.55 7,422.09 12233.46 164.825 0 0USES OF FUNDS 0 0Fixed Assets 0 0Gross Block 1,533.72 365.58 1168.14 319.5306Less : Revaluation Reserve

0 0

0 0Less : Accumulated Depreciation

59.34 37.01

22.33 60.33504Net Block 1,474.37 328.57 1145.8 348.7233Capital Work-in-progress

1,781.79 665.031116.76 167.9263

0 0Investments 1,839.83 769.17 1070.66 139.1968 0 0Net Current Assets

0 0Current Assets, Loans & Advances

18,345.94 9,442.25

8903.69 94.29627Less : Current Liabilities & Provisions

3,786.38 3,782.93

3.45 0.091199Total Net Current Assets

14,559.56 5,659.328900.24 157.267


0 0

0 0Total 19,655.55 7,422.09 12233.46 164.825

COMPARISON OF LAST FIVE YEARS

BALANCESHEET 2009&2010 2008&2009 2007&2008 2006&2007SOURCES OF FUNDSOwner's FundEquity Share Capital 11.46854976 709.8490866 976.0683761 0.285714286Share Application Money 0 0 0 0Preference Share Capital 0 0 0 0Reserves & Surplus 3050.060533 -42.86184861 59.60254456 -16.170119Loan Funds 0 0 0 0Secured Loans -20.77429875 107.3382643 377.8116322 12.95034953Unsecured Loans 553.4892114 17508.02676 1.355932203 -7.8125Total 164.8250021 102.8530823 259.7583159 -0.134524745

0 0 0 0USES OF FUNDS 0 0 0 0Fixed Assets 0 0 0 0

70


Gross Block 319.5306089 235.6716555 10.23279352 18.18181818Less : Revaluation Reserve 0 0 0 0Less : Accumulated Depreciation 60.33504458 26.57318741 9.145203434 0.337078652Net Block 348.7232553 312.4137065 10.65277778 49.06832298Capital Work-in-progress 167.926259 45.60681365 12.32078302 16842.91667

0 0 0 0Investments 139.1967965 -44.95233597 703.8660683 -1.962774958

0 0 0 0Net Current Assets 0 0 0 0Current Assets, Loans & Advances 94.29627472 205.3649276 80.78449944 22.81108638Less : Current Liabilities & Provisions 0.09119915 176.7423827 1.570046514 123.4467873Total Net Current Assets 157.2669508 228.0441927 373.2067916 -53.87525304Miscellaneous expenses not written 0 0 0 0Total 164.8250021 102.8530823 259.7618533 -0.135506677Note : 0 0 0 0Book Value of Unquoted Investments 138.335661 -45.68160999 703.8660683 -1.962774958Market Value of Quoted Investments 203.4347399Contingent liabilities -20.18665501 132.3781764 226.7701975Number of Equity shares outstanding (in Lacs) 11.4691769 3949.515463 976.6248575 0

CHAPTER 6

ANALYSIS OF

71


CASH FLOW

ANALYSIS OF CASH FLOW OF LAST FIVE YEARS:-

D L F Ltd. Mar-06 Mar-07 Mar-08 Mar-09 Mar-10


-

Net cash flow from operating activities (indirect method) -183.32 550.63 -64.37 -2679.28 -1621.71

Net profit before tax & extra ordinary income 48.07 96.88 347.9 620.33 3117.92

Adjustments for depreciation 2.76 3.4 3.9 9.44 25.68

Adjustments for interest payable 9.41 33.07 146.15 302.99 425.61

Adjustments for provn. for contingencies 0 0 0 0 0

Adjustments for foreign exchange (gain)/loss 0.01 0 0.03 -0.05 0.02

Adjustments for add back of amortizations & others written off 0.01 0 0 0 41.86

Adjustments for add back of other provisional adjustments 1.65 1.94 3.05 0.01 2.67

Adjustments for (profit)/loss on sale of investments -0.01 0 0 0.02 -0.56

Adjustments for (profit)/loss on sale of assets 0.22 -0.19 0.22 0.22 0.3

Adjustments for interest income -10.72 -23.95 -154.89 -288.66 -426.71

Adjustments for dividend income 0 0 0 -0.28 -85.33

Adjustments for other expenses / income -8.84 -9.81 -4.89 -8.52 -4.71

Adjustments for provision / liabilities written back 0 0 -0.03 -0.77 -0.17

Operating cash flow before working capital changes 42.56 101.34 341.44 634.73 3096.58

Cash inflow/(outflow) due to decrease/(increase) in trade & other receivables -88.03 -174.3 -550.75 -728.86 -2080.79

Cash inflow/(outflow) due to decrease/(increase) in inventories -195.38 463.51 246.46 -286.86 -267.01

Cash inflow/(outflow) due to increase/(decrease) in trade & other payables 70.3 187.56 -56.19 -1988.49 -1644.16

Cash inflow/(outflow) due to deposits (banks/FIs) 0 0 0 0 0

Cash inflow/(outflow) due to advances (banks/FIs) 0 0 0 0 0

Cash inflow/(outflow) due to others 0 0 0 0 0

Cash flow generated from operations -170.55 578.11 -19.04 -2369.48 -895.38

Cash (outflow) due to direct taxes paid -12.77 -27.47 -45.33 -309.58 -610.44

Cash (outflow) due to dividend tax paid 0 0 0 -0.22 -115.89

72


Cash flow before extraordinary items -183.32 550.64 -64.37 -2679.28 -1621.71

Cash inflow/(outflow) from extraordinary items 0 -0.01 0 0 0

Cash (outflow) due to miscellaneous expenditure 0 0 0 0 0

Net cash inflow/(outflow) from investment activities -338.01 -579.89 -2146.21 -629.16 -6482

Cash (outflow) due to purchase of fixed assets -42.93 -407.65 -51.18 -424.33 -2258.06

Cash inflow due to sale of fixed assets 0.1 0.89 5.82 1.74 0.7

Cash inflow/(outflow) due to decrease / (increase) in capital wip 0 0 0 0 0

Cash inflow /(outflow) due to acquisition/ merger/ hiving off of cos./ units 0 0 0 0 0

Cash (outflow) due to purchase of investments -49.48 -7.14 -1224.61 -224.24 -1111.58

Cash inflow due to sale of investments 39.63 9.79 1.15 783.76 147.01

Cash inflow due to profit on redemption of shares 0 0 0 0 0

Cash inflow/(outflow) due to loans to subs./group cos. -308.47 -202.89 -1030.27 -1053.88 -3770.48

Cash inflow/(outflow) due to loans to other cos. 0 0 0 0 0

Cash inflow due to interest received 14.3 27.11 152.88 287.79 425.08

Cash inflow due to dividend received 0 0 0 0 85.33

Cash inflow/ (outflow) due to other income 8.84 0 0 0 0

Cash inflow /(outflow) due to disbursements 0 0 0 0 0

Net cash inflow/ (outflow) from financing activities 528.43 23.94 2251.51 3286.55 9061.8

Cash inflow due to proceeds from share issues 0 0 0 0 9184.92

Cash (outflow) due to redemption/buyback of capital 0 0 0 0 0

Cash inflow due to cash subsidy 0 0 0 0 0

Cash inflow due to proceeds from total borrowings 538.68 499 2619.04 4907.37 5441.2

Cash inflow due to proceeds from long term borrowings 460 499 2297.09 4534.1 1952.99

Cash inflow due to proceeds from short term borrowings 78.68 0 291.95 372.8 3488.2

Cash (outflow) due to repayment of total borrowings 0 -426.99 -203.97 -1151.67 -3824.05

Cash (outflow) due to repayment of long term liabilities 0 -366 -203.97 -1151.67 -3824.05

Cash (outflow) due to repayment of short term liabilities 0 -60.99 0 0 0

Cash (outflow) due to issue expenses 0 0 0 0 -274.37

Cash (outflow) due to interest paid -8.85 -46.67 -162.17 -467.51 -783.97

Cash (outflow) due to dividend paid -1.4 -1.4 -1.39 -1.64 -681.93

Cash inflow/(outflow) due to other cash receipts/payables from financing activities 0 0 0 0 0

Net cash inflow/(outflow) due to net increase/(decrease) in cash & cash equivalents 7.1 -5.32 40.93 -21.89 958.09

Cash flow -- opening balance 3.33 10.43 5.11 46.05 24.16

Cash flow -- closing balance 10.43 5.11 46.04 24.16 982.25

INTERPRETATION:-

(A)Net cash flow from operating activities (indirect method)-

73


D L F Ltd. 06-Mar 07-Mar 08-Mar 09-Mar 10-MarNet cash flow from operating activities (indirect method) -183.32 550.63 -64.37 -2679.28 -1621.71

(B)Net cash inflow/(outflow) from investment activities

D L F Ltd. 06-Mar 07-Mar 08-Mar 09-Mar 10-MarNet cash inflow/(outflow) from investment activities -338.01 -579.89 -2146.21 -629.16 -6482

(c)Net cash inflow/ (outflow) from financing activities:-

D L F Ltd. 06-Mar 07-Mar 08-Mar 09-Mar 10-MarNet cash inflow/ (outflow) from financing activities 528.43 23.94 2251.51 3286.55 9061.8

TOTAL (A+B+C):-Net cash inflow/(outflow) due to net increase/(decrease) in cash & cash equivalents :-

D L F Ltd. 06-Mar 07-Mar 08-Mar 09-Mar 10-MarNet cash inflow/(outflow) due to net increase/(decrease) in cash & cash equivalents 7.1 -5.32 40.93 -21.89 958.09

74

CASH FLOW ANALYSIS

-183.32

550.63 -

64.37

-2679.28

-1621.71

-8000

-6000

-4000

-2000

0

2000

4000

6000

8000

10000

06-Mar

07-Mar

08-Mar

09-Mar

10-Mar

Net cash flow from operating activities (indirect method)Net cash inflow/(outflow) from investment activitiesNet cash inflow/ (outflow) from financing activitiesNet cash inflow/(outflow) due to net increase/(decrease) in cash & cash equivalents


CHAPTER 7

RATIO ANALYSIS

RATIO ANALYSIS

The relationship of one item to another expressed in a simple mathematical form is known as the “RATIO”. A ratio is a quotient to two numbers. It must be interpreted against some standard. In

75


assessing the financial stability of a firm, a management should, part form profitability, be interested in relative figures. A ratio is of major importance for financial analysis; it engages qualitative measurement & shows precisely how adequate is one key item in relation to another. To evaluate the financial condition & the purpose of the firm the financial analyst needs certain yardsticks. The yardsticks frequently used in ratio or an index relating two pieces of financial data to each other’s.

UTILITY OF RATIO ANALYSIS:

1. Probability.2. Liquidity.3. Efficiency.4. Inter – Firm Comparison.5. Indicates Trend.6. Useful of Budgetary Controls.7. Useful for Decision Making.

This ratio analysis contains five types of ratio as below:

1. Profitability Ratios.2. Liquidity Ratios.3. Assets Turnover Ratios.4. Finance Structure Ratios.5. Valuation Ratios.

6.1 Profitability Ratios:

Profitability ratio measures the degree of operating success of a company in an accounting period. Two types of profitability ratios are there.

1. Profit Margin Ratios.2. Rate of Return Ratios.

A profit margin ratio shows the relationship between profit & sales. Three popular profits margin ratios are:

76

GROSS PROFIT

12.16

16.28

32.15

59.76 55.8

8

0

10

20

30

40

50

60

70

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

Gross Profit Ratios.


Gross Profit Margin Ratios. Net Profit Margin Ratios. Operating Profit Ratios.

Gross Profit Margin Ratio:

It shows the margin left after meeting manufacturing costs. It measures the efficiency of production as well as pricing.

Gross Profit Margin Ratio = Gross Profit/ Sales X 100

Particular 2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

Net Sales**. 495.8 412.23 953.46 1,101.66 5,496.96Gross Profit. 60.3 67.12 306.6 658.44 3,072.05Gross Profit Ratios. 12.16 16.28 32.15 59.76 55.88

The table shows that gross profit has been increased continuously increased over the years.

The reason for increase in the gross profit is due to increase in sale.

Sale has been continuously increased over the years

77


Although the gross profit has been increased over the years it has been found that gross profit ratio has been increased continuously.

In the year2005-06 the gross profit ratio is 12.16 %& with in a five year gap increase to 55.88% so company have to maintain the same situation in future

Net Profit Margin Ratios:

It is most significant of all revenue ratios as it indicates the ultimate profitability of the firm. This ratio is useful to the shareholders for knowing the EPS and to investors in judging the prospects of return on their investments higher ratio indicated higher profitability.

Net Profit Margin Ratio = Net Profit / Sales x 100.

Net Profit Ratio.Particular 2005-

20062006-2007

2007-2008

2008-2009

2009-2010

Net Profit. 35.50 67.70 227.44 405.77 2574.40

Sales. 495.8 412.23 953.46 1,101.66 5,496.96Net Profit Ratio. 7.16% 16.42% 23.85% 36.83% 46.83%

GROSS PROFIT

7.16%

16.42%

23.85%

36.83%

46.83%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

Net Profit Ratio.

78


In above showing continues increase in gross profit.So we can say that company is smoothly & gradually growing & strong back up..

in 2005-06 company’s net profit is almost 7.16% but then company double profit in only one year is 16.42% and than it will be at 46.83% almost half of the sale. so company is gaining very high margin.

Operating Profit Ratio:

This ratio indicate the portion that the cost of sales bears to sales cost of sales includes direct cost of good sold as well as operating expenses, administrative, selling & distribution expenses which, have matching relationship with sales. It is calculated as:

Operating Profit ratio = Operating Profit / Sales X 100.

Operating Profit RatioParticular 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010Operating Profit. 60.30 67.12 306.60 658.44 3072.05Sales. 495.8 412.23 953.46 1,101.66 5,496.96Operating Profit Ratio. 12.16 16.28 32.16 59.77 55.89

79

OPERATING PROFIT RATIO

55.8959.77

32.16

16.2812.16

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

YEARS

PER

CEN

TA

GE(%

) Operating Profit Ratio.


In operating profit ratio is very higher. In 2005-06 the operating profit is 12.16 is continuously increase in 2006-07 is16.28,2007-08 is 32.16 & in 2008-09 it is 59.77.But in 2009-10 the operating profit is decreasing to 55.89 so company ill maintain or increase it continuously.

Rate of return ratios reflects the relationship between Profit & Investments. Important rate of return ratios measures are:

Return on assets or Return on investments. Return on equity. Earning power.

Return on assets or Return on investments:

This is measure of profitability from a given level of investments. It is an excellent indicator of overall performance of a company. It is also called return on capital employed or return on investment. It measures how efficiently the capital is employed.

Return on Assets = Net Profit / Average Total Assets X 100


2006-2007

2007-2008

2008-2009

2009-2010

Profit After Tax. 1202.12 1935.80 2714.10 3273.20 4412.86P.Y. Total Assets 21140.87 18455.07 17309.91 22191.19 22840.70C.Y. Total Assets 18455.07 17309.91 22191.19 22840.70 27318.95Average Total Assets. 19797.97 17882.49 19750.55 22515.95 25079.83

80

GROSS PROFIT

6.07

10.83

13.74

14.54

17.6

0

2

4

6

8

10

12

14

16

18

20

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

Return on Assets Ratio.


Return on Assets Ratio. 6.07 10.83 13.74 14.54 17.60

The ROA goes increasing every year i.e. 6.07% to 17.60%. This is showing the efficiency in the use of capital. The

company can earn more profit by optimizing the use of assets.

The ROA has increased every year because of increase in profit every year.

The ratio in year 2006 – 2007 is more than the year 2007 – 2008 because there is reduction in average total assets

Return On Equity:

It measures the profitability of equity funds invested in firm.

Return on Equity = Profit after Tax / Average Shareholder’s Equity x 100

Return On Equity:Particular 2005-2006 2006-2007 2007-2008 2008-

20092009-2010

PAT or Equity Earning. 1202.12 1935.80 2714.10 3273.20 4412.86P Y Shareholder’s Equity. 2.89 3.50 3.51 37.77 305.88CY Shareholder’s Equity. 3.50 3.51 37.77 305.88 340.96Average Shareholder’s Equity. 3.20 3.51 20.64 171.83 323.42Return on Equity Ratio. 37625.04% 55229.67% 13149.71% 1904.96% 1364.44%

81

RETURN ON EQUITY RETIO

37625.04%

55229.67%

13149.71%

1904.96%

1364.44%0.00

%

10000.00%

20000.00%

30000.00%

40000.00%

50000.00%

60000.00%

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

Return on Equity Ratio.


Return on Equity is continuously decreasing i.e. from 37625.04% in the year 2005-06 to 1364.44% in 2009-10 that mean the equity funds invested in the company/ firm is good which shows that the profitability of the business is increasing year by year.

Earning Power: The earning power is a measure of business performance, which is not affected by Interest & Tax. It is measure of operating profitability.

Earning Power = Earning before Profit & Tax / Average Total Assets x 100.

Earning Power:Particular 2005-

20062006-2007 2007-2008 2008-2009 2009-2010

Profit Before Tax. 48.1 96.86 347.87 620.23 3,117.83P Y Total Assets 21140.87 18455.07 17309.91 22191.19 22840.70CY Total Assets 18455.07 17309.91 22191.19 22840.70 27318.95Average Total Assets. 19797.97 17882.49 19750.55 22515.95 25079.83

Earning Power Ratio. 0.24% 0.54% 1.76% 2.75% 12.43%

82

EARNING POWER RATIO

0.24% 0.54%

2.75%

12.43%

1.76%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

YEARS

P E R C E N T A G E

( % )

Earning Power Ratio.


The Earning Power of the company has been increased to 12.43% in year 2009–2010 from 0.24% in year 2005 – 2006.

This is because the increase in earning before interest & tax (EBIT) is more than increase in average total assets.

In 2005 – 2006 the EBIT is increased by 2.75% while PAT is increased by 12.43% because interest & tax is less.

In year 2006 – 2007 EBIT increased by 20.97% while PAT is increased by 10.20% because interest & tax is only by 13%.

In year 2007 – 2008 EBIT increased by 20.09% while PAT is increased by 20.60% because interest & tax is less compares to last year.

6.2 Liquidity Ratios:Liquidity is the ability of a company to meet its short-term obligations when fall due. A company should have enough cash % other current assets, which can be converted in to cash so that it can pay its suppliers & lenders on time.In evaluating Ashok Leyland Ltd’s liquidity five ratios are presented.

Current Ratio. Quick Ratio or Acid-test Ratio. Net Working Capital. Cash Generated Per Rupee of Sales. Bank Finance Gap Ratio.

Current Ratio:

83

CURRENT RATIO

3.01

1.661.01

0.761.21

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2004 - 2005 2005 - 2006 2006 - 2007 2007- 2008 2008 - 2009

YEARS

IN

TI

M E S

Current Ratio.


Current ratio indicates the firm’s ability to pay its current liabilities, i.e. day-to-day financial obligations. It shows the strength of credit, strength of working capital & capacity to carry on effective operations. Higher ratio i.e. more than 2:1 indicates sound solvency position.

Current Ratio = Current Assets/ Current Liabilities.Where,Current Assets = Inventories + Debtors + Cash & Bank Balance + Loan & Advances.Current Liabilities = Liabilities + Provision

Current ratioParticular 2004 –

20052005 - 2006

2006 - 2007

2007 - 2008

2008 - 2009

Current Assets. 1402.6 1014 1366.91 6224.94 11298.89

Current Liabilities. 1155.38 1337.54 1358.49 3759.04 3753.2

Current Ratio. 1.21 0.76 1.01 1.66 3.01

Composition of current ratio is very important at the time of interpretation. Current ratio indicates the sound short term finance from the creditor’s point of view. But on the other

84


hand the higher ratio indicates blocking of funds in current assets. As a conventional rule, current ratio of 2:1 or more is considered satisfactory. To through more light on the quality of current assets the percentage of the current assets is to be calculated.

However, an arbitrary standard of 2:1 should not be blindly followed. Firm’s wit less then 2:1 current ratios may be doing well, while firms with 2:1 or even higher may be finding great difficulties in paying their bills. This is because the current ratio is a test of quantity not quality.

Current Ratio is 2.26 in 2006 – 2007 & decreased up to 1.54 in 2008 – 2009 because current liabilities increased rapid than the increase in current assets.

In the Current ratio it has been found decreasing than the base year, so it is not a favorable sign for the company, it should take certain measure to increased.

Quick Ratio or Acid Test Ratio:

The Quick Ratio is a more absolute test of a firm’s ability to meet its immediate liabilities. It base on those current assets, which are highly liquid inventories, is excluded from the numerators of this ratio because inventories are deemed to be the least liquid component of current assets.Quick Ratio = Quick Assets / Liquid Liability.

Quick AssetsParticular 2005-

20062006-2007

2007-2008

2008-2009

2009-2010

Current Assets. 1402.6 1014 1366.91 6224.94 11298.89

Inventories 1195.77 718.48 472.12 4281.07 5928.13

Quick Assets. 206.83 295.52 894.79 1943.87 5370.76Current Liabilities. 1155.38 1337.54 1358.49 3759.04 3753.2

Quick Assets Ratio. 0.18 0.22 0.66 0.52 1.43

85

QUICK ASSET RATIO

0.18 0.22

0.660.52

1.43

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

YEARS

IN

TI

M E S

Quick Assets Ratio.


Generally a quick ratio of 1:1 is considered to represent a satisfactory current financial condition. A quick ratio of 1:1 or more does not necessarily imply sound liquidity position.

A company with a high value of quick ratio can flounder if it has slow-paying, doubtful and stretched out-in-age receivables. On the other hand, a company with a low value of quick ratio may be prospering and paying its current obligation in time, if it has been managing its inventories very efficiently wit a continuous stability.

It has same effect as Current Ratio.In year 2005–2006 the ratio was 0.18, which was highest & also satisfactory level. But then in year 2009–2010, it was increased to 1.43 Because of rapid increase in liquid assets.

Net Working Capital:

This ratio represents that part of the long-term fund represented by the net worth & long-term dept, which are permanently blocked in current assets. Certain minimum level of safety stock, permanent customers unpaid bills, compensatory minimum bank balance & minimum cash balance are the example of permanent working capital.

Net Working Capital = Total Current Assets – Total Current Liabilities

86

NET WORKING CAPITAL

247.22

-323.54

8.42

2465.9

7545.69

-2000

0

2000

4000

6000

8000

2005-2006

2006-2007

2007-2008 2008-2009 2009-2010

YEARS

R S.

IN

M IL LI

O N

Net Working Capital


Net Working CapitalParticular 2005-

20062006-2007 2007-2008 2008-

20092009-2010

Current Assets. 1402.6 1014 1366.91 6224.94 11298.89

Current Liabilities. 1155.38 1337.54 1358.49 3759.04 3753.2

Net Working Capital 247.22 -323.54 8.42 2465.9 7545.69

Net working capital has been found very fluctuating every year.

Net Working Capital in this year (2009 – 2010) is very useful for other purpose because it is highest i.e.7545.69.

Cash Generated Per Rupee of Sales:

This ratio shows that percentage (or Paisa per rupees) of sales which is available in cash form

Cash Generated Per Rupee of Sales =PAT + Depreciation + Non Cash Exp. / Sales X 100

Cash Generated Per Rupee of Sales

87

CASH GENERATED PER RUPEES OF SALES RATIO

8.51%8.54%

9.40%9.44%

10.83%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

YEARS

P E R C E N T A G E

( % )

Cash Generated Per Rupee Of Sales Ratio



2006-2007 2007-2008 2008-2009 2009-2010

PAT 1202.12 1935.80 2714.10 3273.20 4412.86Depreciation 1029.69 964.54 1092.14 1260.06 1505.74Non Cash ItemsFINANCIAL EXPENSES 585.10 207.91 27.98 164.53 53.32EXTRA ORDINARY EXPENSE 86.69 95.19 95.83 (217.15) 130.76Non Cash Items 671.79 303.10 123.81 (52.62) 184.08

2903.60 3203.44 3930.05 4480.64 6102.68Sales. 26803.75 33938.84 41818.97 52476.57 71681.76Cash Generated Per Rupee Of Sales Ratio

10.83% 9.44% 9.40% 8.54% 8.51%

The Cash Generated per Rupee of Sales Ratio includes PAT, depreciation & non-cash expenses (interest).

In the year 2005-2006 cash generated per rupee of sale was highest i.e. 10.83% but it has been than continuously reduced to 8.51% in the year 2008-2009.

Bank Finance Gap Ratio.

Bank Finance Gap Ratio = Total Current Assets – MPBF under Tandon CommitteeMPBF indicates maximum permissible bank finance under tandon committee recommendations of 1975. The maximum permissible

88


bank finance was restricted to 75% of the working capital gap under three successive methods of bank leading.

Method 1:75% (Current Assets – Current Liabilities)

Method 2:75% (Current Assets) – Current Liabilities

Method 2Particular 2005-

20062006-2007

2007-2008

2008-2009

2009-2010

Current Assets. 1402.60 1014.00 1366.91 6224.94 11298.8975% Current Assets 1051.95 760.50 1025.18 4668.71 8474.17Current Liabilities. 1155.38 1337.54 1358.49 3759.04 3753.2075%(CA)-CL -103.43 -577.04 -333.31 909.67 4720.97

Method 3:

75% (Current Assets – Core Current Assets*) – Current Liabilities.Method 3:Particular 2005-

20062006-2007

2007-2008 2008-2009

2009-2010

Current Assets. 1402.60 1014.00 1366.91 6224.94 11298.89Core Current Assets( Quick Assets)

9300.14 9567.26 15891.82 13298.52 16273.93

CA –CCA (7897.54) (8553.26) (14524.91) (7073.58) (4975.04)75% (CA- CCA) (5923.16) (6414.95) (10893.68) (5305.19) (3731.28)Current Liabilities. 1155.38 1337.54 1358.49 3759.04 3753.2075%(CA)-CL (7078.54) (7752.49) (12252.17) (9064.23) (7484.48)

Method 1Particular 2005-

20062006-2007

2007-2008

2008-2009

2009-2010

Current Assets. 1402.60 1014.00 1366.91 6224.94 11298.89Current Liabilities. 1155.38 1337.54 1358.49 3759.04 3753.20CA- CL 247.22 -323.54 8.42 2465.90 7545.6975%(CA-CL) 185.42 -242.66 6.32 1849.43 5659.27

89


Assets Turnover Ratios

Assets Turnover Ratios are basically Production ratios which measures the output produced from the given input deployed. The relationship of productivity is equal to output divided by input & assets turnover is equal to sales divided by Assets.

Assets Turnover Ratios are as follows: Total Assets Turnover. Net Fixed Assets Turnover. Net Working Capital Turnover. Inventory Turnover. Debtor’s Ratio.

Total Assets Turnover:

It shows the relationship between total assets to sales. The sales are affected through investment in fixed assets to earn profit. The higher ratio show that with less amount of investment in total assets, the business has capacity to sell more as such its probability is also more.

Total Assets Turnover = Sales / Total Assets

Where Total Assets = Fixed Assets + Investments + Net Current Assets + Misc. Expenses.

Total Assets TurnoverParticular 2005-

20062006-2007 2007-2008 2008-2009 2009-2010

Sales. 495.8 412.23 953.46 1,101.66 5,496.96Total Assets. 18455.07 17309.91 22191.19 22840.70 27318.95Total Assets Turnover Ratio. 0.03 0.02 0.04 0.05 0.20

90

TOTAL ASSETS TURNOVER RATIO

0.03 0.020.04 0.05

0.20

0.00

0.05

0.10

0.15

0.20

0.25

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

YEARS

IN

TI

M E S

Total Assets Turnover Ratio.


Total assets turnover ratio has increased in 2009–2010 that shows the efficient utilization of total assets of the company.

But in ratios is not more changes which shows companies has not utilized efficiently it’s total fixed assets in sales as compared to 2009-10.

But after that it has been increased to 0.20 in 2009-2010. It is very good sign for the company that it is increasing its

use of fixed assets over sales.

Net Fixed Assets Turnover Ratio:

The Fixed Assets Turnover shows the efficiency & profitability of business by comparing the fixed assets with sales. The higher ratio shows that the fixed assets are using efficient manner to increase the sales.

Fixed Assets Turnover Ratio = Sales / Net Fixed Assets.Net Fixed Assets Turnover RatioParticular 2005-

20062006-2007 2007-2008 2008-2009 2009-2010

Sales. 495.8 412.23 953.46 1,101.66 5,496.96Net fixed assets 59.34 478.64 536.4 993.61 3256.17Fixed assets turnover Ratio 8.36 0.86 1.78 1.11 1.69

A fixed assets turnover ratio has been increased. It indicates that fixed assets utilized more efficient in business.

91

Fixed Working Capital Turnover Ratio

1.56

1.07

1.48

1.69

0.49

00.2

0.4

0.6

0.8

11.2

1.4

1.6

1.8

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

Fixed Working Capital Turnover Ratio


In year 2005-06 the net fixed assets have been decreased by 0.86%. So the fixed assets turnover ratio has highest increased in the year 2009-10 is 8.36.

Fixed Working capital turnover Ratio:

It shows the relationship between sales and working capital. It indicates the liquidity strength of the company higher ratio high liquidity; it means company has enough working capital due effective management.

Fixed working capital Turnover Ratio = Sales / Net working Capital.

Fixed Working capital turnover RatioParticular 2005-

20062006-2007

2007-2008

2008-2009

2009-2010

Sales. 495.8 412.23 953.46 1,101.66 5,496.96Current Assets. 1402.60 1014.00 1366.91 6224.94 11298.89Current Liabilities. 1155.38 1337.54 1358.49 3759.04 3753.2Net Working Capital 317.82 383.93 644.93 652.8 11269.15Fixed Working Capital Turnover Ratio

1.56 1.07 1.48 1.69 0.49

92

AVERAGE AGE OF DEBTOR'S

70.31

132.84153.19

321.43

155.17

0

50

100

150

200

250

300

350

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

YEARS

IN

D A Y S

Avg. Age of Debtor’s Ratio


In the fixed working capital turnover ratio too much of fluctuation has been found but then it has increased.

In 2005-06 the ratio was 1.56 times but in year 2006-07 it was decreased to 1.07 times but in the year 2007-08 it has been increases to 1.48 times but than it has decreased to 0.49 in year 2009-10. It indicates there is proper utilization of working capital to increase sales

Average Age of Inventories:

This ratio indicates the waiting period of the investment in inventories & is measured in days, weeks or months. Inventory turnover & average age of inventories are inversely related. High Inventory Turnover Ratio is goods but longer age of inventory is bad as it indicates idle blocking of money in inventories.

Average Age of Inventories = 360 days / Inventory Turnover

Avg. Age of Debtor’s RatioParticular 2005-

20062006-2007

2007-2008

2008-2009

2009-2010

Days 360 360 360 360 360Debtors turnover 5.12 2.71 2.35 1.12 2.32Avg. Age of Debtor’s Ratio 70.31 132.84 153.19 321.43 155.17

This graph shows the very good situation for company.

93


In Average Age of Inventories lower the ratio better the situation.

In year 2005–2006 the average age for inventory was 70.31 days & it has been increase to 155.17 days in year 2009–2010. In year 2008–2009 Average Age of Inventories ratio was

maximum to 321.43. It shows favorable situation of company as it has decreased.

Debtor’s Ratio:It indicates the effective of credit and the speed at which the debtors are converted in to cash. It shows the equality of debtor’s also. I.e. good, doubtful or bad etc

Debtor’s Ratio = (Debtors + Bills Receivable/Credit Sales*) x 365

Debtor’s Ratio Particular 2005-2006 2006-2007 2007-2008 2008-2009 2009-

2010Debtors 0 0 0 0 0Bills Receivable 137.85 187.83 648.02 1376.41 3382.16Total 137.85 187.83 648.02 1376.41 3382.16Credit Sales/ Net Sales 472.92 442.04 983.94 1130.62 5530

Debtor’s Ratio 106.39 155.09 240.39 444.35 223.23

94

Debtor’s Ratio

106.39

155.09

240.39

444.35

223.23

050

100

150

200

250

300

350

400

450

500

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

Debtor’s Ratio


Debtor’s Turnover:

The debtor’s turnovers suggests the number of times the amount of credit sales is collected during the year, while debtors ratio indicates the no. of days during which the dues for credit sales are collected.

Debtor’s Turnover = Credit Sales / Average Debtors.Debtor’s Turnover Particular 2005-2006 2006-2007 2007-2008 2008-2009 2009-

2010Credit Sales/ Net Sales 472.92 442.04 983.94 1130.62 5530.00Previous Years Debtors 46.73 137.85 187.83 648.02 1376.41Current Years Debtors 137.85 187.83 648.02 1376.41 3382.16Average Debtors 92.29 162.84 417.93 1012.22 2379.29Debtor’s Turnover 5.12 2.71 2.35 1.12 2.32

95

DEBTOR'S TURNOVER

5.12

2.712.35

1.12 2.32

0

1

2

3

4

5

6

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

YEARS

IN

D A Y S

Debtor’s Turnover

AVERAGE AGE OF DEBTOR'S

70.31

132.84153.19

321.43

155.17

0

50

100

150

200

250

300

350

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

YEARS

IN

D A Y S

Avg. Age of Debtor’s Ratio


Average Age of Debtors:

The average age of debtors is compared with “the credit period allowed to the customers”

Avg. Age of Debtor’s Ratio = 360 Days / Debtors Turnover

Avg. Age of Debtor’s RatioParticular 2005-2006 2006-2007 2007-2008 2008

-2009Days 360 360 360 360Debtors turnover 5.12 2.71 2.35 1.12Avg. Age of Debtor’s Ratio 70.31 132.84 153.19 321.43

96


FINANCE STRUCTURE RATIOS: It indicates the relative mix or blending of owner’s funds and outsider’s debt funds in the total capital employed in the business. Financial leverage refers to the use of debt finance. While debt capital is a cheater source of finance, it is also a riskier source of finance.

Two types of ratio are commonly used to analyze financial leverage1. Structural Ratios.2. Converge

Structure ratio is base on the proportion of debt and equity in the financial structure of the firm. Important structural ratios are: -

Equity Ratio or proprietary Ratio Debt equity Ratio Debt Ratio

Equity Ratio or Proprietary Ratio: This ratio can be finding out by dividing net worth to total

capital employed. This ratio focuses the attention on the general financial strength of the business enterprise.

Equity Ratio = Net Worth \ Total Capital EmployedWhere,

Net Worth = Equity Capital + Reserves – Misc. Expenses

Total Capital Employed = Net Worth + Long Term Debt.

Equity RatioParticular 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010Equity Capital (a) 3.51 3.51 37.77 305.88 340.96Reserves (b) 314.31 380.42 607.16 346.92 10928.19Misc. Expenses (c) 0 0 0 0 0Net Worth (a+b-c) A 317.82 383.93 644.93 652.8 11269.15Secured loans(d) 557.9 630.15 3,010.93 6,242.81 4,945.91Unsecured loans(e) 3.2 2.95 2.99 526.48 3,440.49Long Term Debt(d+e) B 561.1 633.1 3013.92 6769.29 8386.4Total Capital Employed (A+B) = C 878.92 1017.03 3658.85 7422.09 19655.55Equity Ratio 0.36 0.38 0.18 0.09 0.57

Debt equity ratio:

97


This ratio indicates the relationship between borrowed funds and owner’s capital. It shows the proportion of long-term external equities and internal equities. i.e. proportion of funds provided by long-term creditors and that provided by shareholders or proprietors.

Debt Equity Ratio = (Total long term debt/Net worth) x 100.Debt equity ratioParticular 2005-2006 2006-2007 2007-2008 2008-2009 2009-

2010Debt 7175.22 4989.08 8804.06 6919.28 6403.98Net worth 314.31 380.42 607.16 346.92 10928.19Debt Equity Ratio 2282.85% 1311.47% 1450.04% 1994.49% 58.60%

Debt ratio:

It shows the relationship between long-term debt and total capital employed. Equity ratio and debt ratio summation is always 1.

Debt ratio = long-term debt / total capital employedDebt ratioParticular 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Long term debt 7175.22 4989.08 8804.06 6919.28 6403.98Total capital employed 16770.08 15507.05 20482.71 21043.81 25349.66

Debt ratio 0.43 0.32 0.43 0.33 0.25

Interest coverage Ratio:

This ratio indicates the use of interest bearing debt funds in generating higher operating profit. Higher is the ratio better is the utilization of dept fund. Higher interest cover ratio, enhance the equity earning is passed over to the equity finance portion of the capitalization.

Interest Coverage Ratio = EBIT / Interest.

Valuation Ratios:

Valuation ratios are the results of the management valuation ratio are generally presented on a per share basis and that are more useful to the equity invertors. The per share valuation are popular presented as

98


Earning per share (EPS). Dividend pay out Ratio (DPS) Divided yield P/E Ratio.

Earning per share (EPS).

Earning per Share is an important major of corporate performance for shareholders & potential investor. EPS figures are commonly presented in prospectus & other material send to investor, press reports & reports of equity analyst. AS 20 sets out the requirements for computation of EPS*EPS is reported only foe equity share capital.Earning Per Share = Profit after Tax / No. Of Equity Shares

Dividend pay out Ratio (DPS): This ratio indicates the spilt of EPS between cash dividend & reinvestment of profits. Ashok Leyland Ltd has profitable projects; show it is prefer to D/P ratio lower, i.e. it will reinvest higher proportional profits in the business.Dividend pay out Ratio = Dividend per Share / Earning per Share.

Dividend Yield:

The Dividend Yield represents the current cash return to share holders. It is computed by dividing the dividend per share by the average market price of share.

Dividend Yield = Dividend per Share / Average Market Price of Share X 100.

P/E Ratio:

This is popular measure extensively used in investment analysis. In a recent served, 40% of well-known institutional portfolio managers and analysts in the U.S ranked P/E ratio as the key factor in picking stocks.

P/E ratio = current market price of share/Earning per share

99

P/E RATIO

16.04 12.55

103.96

164.36

11.01

0

20

40

60

80

100

120

140

160

180

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

YEARS

IN

TI

M E S

P/E Ratio


PROFITABILITY RATIO


(Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths

-

PBDITA/Total income16.1592749

12.0484844

26.9581892

42.5776956

78.9141132

64.7230383

PBDTA/Total income14.4364492

10.2514975

20.7157447

30.7126529

44.0358701

51.8478134

PBIT/Total income15.2840241 11.491842

26.4329484

42.3142025 78.315813

64.3119549

PBT/Total income 13.561198 9.6948550 20.190504 30.449159 43.437569 51.43672

100


4 9 8 9 99

PAT/Total income9.32332388

7.15567836

14.1085498

19.9382274

28.4409248

42.4707565

Cash profit/Total income10.1259254

7.78492629

14.6817291

20.1816532

29.0140628

42.8897581

PBDITA Net of P&E/Total income Net of P&E 15.084232

11.9815017

26.9533452

42.5240462

78.9130161

64.7263681

PBDTA Net of P&E/Total income Net of P&E

13.3291041 10.182156

20.7013882

30.6437663

44.0040295

51.850251

PBIT Net of P&E/Total income Net of P&E14.1925707

11.4241286 26.427304

42.2602147

78.3141886

64.3152562

PBT Net of P&E/Total income Net of P&E12.4374427

9.62478291 20.175347

30.3799348 43.405202

51.4391391

PAT Net of P&E/Total income Net of P&E8.12010996

7.08227311

14.0841248

19.8555042

28.3953381

42.4725444

Cash profit Net of P&E/Total income Net of P&E

10.1430887

7.73052223

14.6623526

20.1962138

29.0557273

42.897514

PBDITA Net of PE&OI/Sales15.8506777

12.5454622

29.2100262

49.4704962

99.7709221

70.9486438

PBDTA Net of PE&OI/Sales14.0063699

10.6614227

22.4346213

35.6495315

55.6349613

56.8347197

PBIT Net of PE&OI/Sales14.9137101 11.961854

28.6399421

49.1635669

99.0138154

70.4980108

PBT Net of PE&OI/Sales13.0694023

10.0778144

21.8645371

35.3426022

54.8778546

56.3840868

PAT Net of PE&OI/Sales8.53270128

7.41563055

15.2633246

23.0989694

35.9006563

46.5555154

Cash profit Net of PE&OI/Sales10.6584697

8.09439229

15.8899647

23.4953351

36.7355964

47.0213382

PAT Net of PE&OI/Net sales8.65644725

7.49695376

15.4291203

23.1316472

36.0463567

46.5979001

LIQUIDITY RATIO



-

Cash to current liabilities 0.00366361 0.00872154 0.00372925 0.02708333 0.00568602 0.13117876

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Cash to avg. cost of sales 5.73944492 8.33285908 4.59288751 18.3914729 8.74678264 103.771022

Quick ratio 0.02896082 0.12103956 0.13646726 0.40456685 0.32643367 0.47952046

Current ratio 1.00994669 1.17260785 0.72627155 0.7568032 1.42027639 1.50618777

Current ratio (incl. mktbl. securites) 1.00994669 1.17260785 0.72627155 0.7568032 1.42266312 1.5103125

Debt to equity ratio 0.0788278 1.76533887 1.64894642 4.67320484 10.3694087 0.74418035

Interest cover 8.08634538 6.34904602 4.22704508 3.55717332 2.2433819 4.99492633

Interest incidence (%) 14.5955451 3.05429864 5.01616226 7.45769776 11.0887822 10.8813805

Structure of current assetsInventories 1001.26 1195.77 718.48 472.12 4281.07 5928.13Sundry debtors (outstanding less than six months) 2.91 104.93 0.44 23.37 171.97 706.31Sundry debtors (outstanding over six months) 16.61 0.62 3.53 3.19 1.82 756.97

Bills receivable 0 0 0 0 0 0Acccured income, lease rent & other receivables 24.71 29.39 181.8 618.05 1198.79 1904.1

Expenses paid in advance 50.69 58.26 85.69 119.8 387.97 993.78

Deposits 2.5 2.91 2.06 3.41 3.83 14.78Sale of investments & other receivables 0 0 0 0 0 0

Cash & bank balance 4.51 10.72 22 126.97 179.49 994.82

Structure of current assets (%)Inventories 90.8024087 85.271445 72.0555199 36.7134281 70.531241 52.5212854Sundry debtors (outstanding less than six months) 0.26390249 7.48265362 0.04412709 1.81731936 2.83323036 6.25767469Sundry debtors (outstanding over six months) 1.50633003 0.04421276 0.35401958 0.2480637 0.02998476 6.70650566

Bills receivable 0 0 0 0 0 0Acccured income, lease rent & other receivables 2.24090398 2.0958276 18.2325096 48.0613705 19.7502368 16.8697008

Expenses paid in advance 4.5969819 4.15457353 8.59375 9.31599739 6.39186128 8.8045645

Deposits 0.22672035 0.20751474 0.20659499 0.26517154 0.0630998 0.13094595Sale of investments & other receivables 0 0 0 0 0 0

Cash & bank balance 0.40900352 0.76445294 2.2063543 9.8735575 2.95712344 8.81377856

Net working capital 10.86 206.42 -375.81 -413.24 1796.11 3793.28Net working capital (as per cost of sales method) -1040.14022

-1140.65049 -1457.25029 -1667.95472

-10708.6321 -3534.6208

RETURN RATIO



-

Return ratios

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On Net worth

PBIT Net of P&E/Avg. net worth14.7988902

18.8024529

36.0812255

94.0341737

172.527413 65.401046

PAT Net of P&E/Avg. net worth8.46700843

11.6563907

19.2290702

44.1809381

62.5553852

43.1895789

PAT/Avg. net worth9.90390092

11.7926645

19.2917706

44.4219816

62.7110416

43.1907532

Cash profit/Avg. net worth10.7564816

12.8296744

20.0755255

44.9643295

63.9747867 43.616858

On Capital Employed

PBIT Net of P&E/Avg. capital employed14.1973241

10.0009723

13.9121644

22.5009477 23.135138

35.0047319

PBIT/Avg. capital employed15.5758078 10.073456

13.9363403

22.5586258

23.1560109

35.0053604

PAT Net of P&E/Avg. capital employed8.12282959

6.20000177

7.41432645

10.5718266

8.38839141

23.1164442

PAT/Avg. capital employed9.50131326

6.27248539

7.43850241

10.6295046

8.40926422

23.1170727

On Total Assets

PBIT Net of P&E/Avg. total assets 2.97176933.29547738

5.74824851

13.0925428

13.7935921

22.5043568

PBIT/Avg. total assets3.26031208

3.31936188

5.75823757

13.1261038

13.8060368

22.5047609

PAT Net of P&E/Avg. total assets1.70026235

2.04299791 3.0634623

6.15138946

5.00131224

14.8614396

PAT/Avg. total assets1.98880513 2.0668824

3.07345136

6.18495037 5.013757

14.8618437

On GFAPBIT Net of P&E/Avg. GFA (excl. reval. & WIP)

88.8472146

88.8138786 138.80057

465.784026

471.852476

410.519554

PBIT/Avg. GFA (excl. reval. & WIP)97.4738003

89.4575712

139.041772

466.977998

472.278188

410.526925

PAT Net of P&E/Avg. GFA (excl. reval. & WIP)

50.8328737

55.0592668

73.9721522 218.84358

171.085353 271.09913

PAT/Avg. GFA (excl. reval. & WIP)59.4594595

55.7029594

74.2133538

220.037552

171.511064

271.106501

RATIO ANALYSISMar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

PER SHARE RATIOS

Adjusted E P S (Rs.) 15.10 2.65 60.28 194.68 101.20Adjusted Cash EPS (Rs.) 15.49 2.72 61.31 204.37 109.18Reported EPS (Rs.) 15.10 2.65 60.22 192.98 101.20Reported Cash EPS (Rs.) 15.50 2.71 61.25 202.66 109.18Dividend Per Share 4.00 2.00 4.00 4.00 0.00

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Operating Profit Per Share (Rs.) 18.02 4.31 81.18 191.34 171.89

Book Value (Excl Rev Res) Per Share (Rs.) 66.10 4.27 170.76 1,094.43 1,303.59

Book Value (Incl Rev Res) Per Share (Rs.) 66.10 4.27 170.76 1,094.43 1,328.10

Net Operating Income Per Share (Rs.) 32.24 7.20 252.45 1,175.12 1,413.34

Free Reserves Per Share (Rs.) 63.84 2.25 159.66 1,052.69 0.00

PROFITABILITY RATIOS

Operating Margin (%) 55.88 59.76 32.15 16.28 12.16Gross Profit Margin (%) 55.41 58.91 31.74 15.45 11.59Net Profit Margin (%) 42.49 28.38 19.86 14.13 7.16Adjusted Cash Margin (%) 43.60 29.05 20.22 14.96 7.72

Adjusted Return On Net Worth (%) 22.84 62.17 35.29 17.78 7.76

Reported Return On Net Worth (%) 22.84 62.15 35.26 17.63 7.76

Return On long Term Funds (%) 22.40 15.35 14.90 13.32 5.64

LEVERAGE RATIOS

Long Term Debt / Equity 0.41 8.74 4.14 1.55 1.23Total Debt/Equity 0.74 10.37 4.67 1.65 1.23

Owners fund as % of total Source 57.33 8.79 17.62 37.74 44.90

Fixed Assets Turnover Ratio 3.60 3.01 8.75 4.18 5.93

LIQUIDITY RATIOS

Current Ratio 4.85 2.50 2.26 1.27 2.31

Current Ratio (Inc. ST Loans) 2.34 1.75 1.51 1.21 2.31Quick Ratio 3.28 1.36 1.91 0.73 1.03Inventory Turnover Ratio 0.00 0.33 2.43 1.29 0.64

PAYOUT RATIOS

Dividend payout Ratio (Net Profit) 30.99 98.30 0.77 2.34 0.00

Dividend payout Ratio (Cash Profit) 30.19 96.07 0.76 2.23 0.00Earning Retention Ratio 69.01 1.72 99.23 97.68 100.00

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Cash Earnings Retention Ratio 69.80 3.95 99.24 97.79 100.00

COVERAGE RATIOS

Adjusted Cash Flow Time Total Debt 3.17 16.30 13.02 8.83 14.65

Financial Charges Coverage Ratio 8.12 2.77 3.41 4.05 6.41

Fin. Charges Cov.Ratio (Post Tax) 6.90 2.17 2.58 3.15 5.07

COMPONENT RATIOS

Material Cost Component(% earnings) 0.00 0.00 0.00 0.00 0.00Selling Cost Component 0.83 5.75 2.80 5.74 0.00

Exports as percent of Total Sales 2.18 18.06 11.72 18.49 0.00

Import Comp. in Raw Mat. Consumed 0.00 0.00 0.00 0.00 0.00

Long term assets / Total Assets 0.21 0.15 0.38 0.27 0.14

Bonus Component In Equity Capital (%) 78.51 87.50 0.00 0.00 0.00

DU PONT CHART

Profit margin & assets turnover are the two drivers of return on assets. The Du Pont System of financial analysis clearly brings out the effects of these two drivers on return on assets. A system is useful for analysis, which considers important inter relationship based on information found in financial statements.

Importance Of Du Pont Chart:

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Any decision affecting the product price per unit costs, volume or efficiency has an impact on the profit margin or turnover ratios. Similarly any decision affecting the amount & ratio of debt or equity used will affect the financial structure & the overall cost of capital of a company. Therefore, these financial concepts are very important to evaluate as every business is competing for Limited Capital Resources. Understanding the inter relationship among the various ratios such as turnover ratio, average & probability ratios helps companies to put their money areas where the risk adjusted return is the maximum.

The chart used by “Du Pont Company” of U.S.A is known as Du Pont Chart.

This is the Du Pont Chart applied to DLF Ltd. At the left of the Du Pont Chart is the return on the assets defined as the product of the Net Profit Margin & the Total Assets Turnover Ratio.

Net Profit Total Assets = Net Profit / Sales X Net Sales / Avg. Total Assets.

Such decomposition helps in understanding how the Net Profit Margin & Total Assets Turnover Ratio influences the Return on Total Assets.

Suggestions & Recommendations

1. The balance sheet figures are showing the declining trend since last few years. It should be the reason for higher inventory level which unnecessary blocked the money. For higher the profitability ratio of the firm, it is required to increase the sales along with:

106


New advertising techniques through latest media which are more effective and prestigious.

To increase the work efficiency of the workers as well as of the staff members, arrangement of different training programmes like meetings, seminars, conferences, coaching classes etc. is required.

For the innovation of new market, select capable market representatives who are more efficient to recover the more market share.

Try to maintain the quality level as per the market demand which satisfies the customers more.

2. In order to increase the profit the firm should keep proper control over the expenses retaliating to the purchase of goods, manufacturing and lab ours for that, proper supervision and timely comparison of actual with budgeted overheads should be taken. This will help the management to know the causes and taking competitive actions to reduce the expenses.

In order to reduce the expenses relating to payment of interest, the firm should rely more on its share capital rather than borrowing loans and funds. Firm should also try to maintain proper balance between debt and equity.

3. To improve the liquidity position of the firm, proper working capital is necessary to recover the daily cash requirement. For that, the firm should:

Try to reduce the debt collection period which should be main sources for working capital.

Use more credit facility which is given by the creditors. Firm should also use more short term loans to recover the

working capital requirement because the interest rate for short term loans is less and it should be flexible to use.

4. In order to maximize wealth under uncertainty, the firm must pay enough dividends to satisfy investors. It should help to increase the moral of the investors and side by side also helps in long term financial strength of the firm. So, by increasing profits, the firm should pay dividends regularly.

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CONCLUSION

We are making the financial analysis from its techniques that we are concluding as follows:

Horizontal Analysis:DLF Ltd has made good growth in last five years in sales as well as profit. Here growth in sales is increasing every year against that expenditure has also increased but lower than sales. In 2008-09, the Company’s exports grew by 23% with the sale of 6,025 vehicles. This improvement was derived from demand in the export markets and the launch of new products. This is the reason the sale & profit has increased compare to last years i.e. 2007-08

Vertical Analysis:It shows that the expenditure of the company is accounting for higher percentage of sales around 99% every year & because of the every year profit has increased but a decreasing rate. So for the increment of profit in future, the company is requiring to optimize its expenditure on the side of operating as well as administrative.

Trend Analysis:It shows good trend in sales & profit but as above said, expenditure also rising that depends the profit of the company. Reserve & Surplus also shows good trend.

Cash FlowIn Cash Flow Analysis all the activities i.e. operating, investing, financing maintain this year (2008 – 2009).

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Ratio Analysis:

We are discussing about mainly 5 kinds of ratio. All the ratios performs very well in last five years that gives better profitability & liquidity position to the company.

DLF Limited is confident that it can meet the challenges passed by the deregulation scenario with its strength in refining. Its strategic scenario with its strength in refining its strategic alliance with DLF Limited marketing and in house productivity improvement, profitability maximization and cost reduction exercises, which have already been launched in right earnest. These measures would place the company in a position of comfort to meet the real challenges of the future and we also wish them “Best of Luck” for their bright future. So that DLF Limited will be a world clean Automotive Company. Now a day, key customer rates company among the top 5 companies. At last, company is financial healthy.

FINANCIAL RESULTS CONSOLIDATED

(Rs. in Crores)Consolidated 2009-10

Consolidated2008-09

Gross operating Profit 9961.49 2,905.59Less : Finance Charges 310.00 307.59Less: Depreciation 90.06 57.81Profit before Tax 9561.43 2,540.19Less: Provision for Tax 1739.09 605.18Profit before minority interest 7822.34 1,935.01Share of Profit t/(loss) in associates 26.41 (1.27)Minority interest (35.48) (1.11)Profit after tax and minority interest 7813.27 1,932.63

The Gross Operating Profit on consolidated basis was Rs.9,961.49 Crores against Rs.2,905.59 Crores in the previous year (2008-09), an increase of 243% and the net profit after tax for the year was Rs.7822.34 Crores as against Rs.1,935.01 Crores for the previous year (2008-09), representing an increase of about 304%.

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