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PROJECT REPORT
ON
FINANCIAL ANALYSIS OF DLF
SUBMITTED BY:
MAYUR PATEL
SUBMITTED TO:
PROF. SANJAY PATEL
Mar '11
Mar '10
339.68
339.51
339.48
339.68
339.51
339.48
14,156.88
13,470.98
12,490.53
Net worth
14,496.56
13,810.49
12,830.01
Secured Loans
11,844.67
14,700.70
11,590.19
Sources Of Funds
Reserves
Revaluation Reserves
Unsecured Loans
130.45
358.85
1,047.67
Total Debt
11,975.12
15,059.55
12,637.86
Total Liabilities
26,471.68
28,870.04
25,467.87
2,143.37
2,002.85
Application Of Funds
Gross Block
Less: Accum.
Depreciation
2,624.35
535.86
400.27
273.84
Net Block
2,088.49
1,743.10
1,729.01
Capital Work in
Progress
2,077.77
2,199.25
1,718.51
Investments
7,046.65
7,037.24
6,558.88
Inventories
8,111.07
8,389.41
6,533.69
Sundry Debtors
519.28
270.21
607.96
366.57
133.92
37.82
8,996.92
8,793.54
7,179.47
15,858.17
15,415.91
11,631.40
42.35
133.61
24,855.09
24,251.80
18,944.48
9,022.55
5,394.09
2,047.37
573.78
967.27
1,435.66
Fixed Deposits
Total CA, Loans &
Advances
Deferred Credit
Current Liabilities
Provisions
Total CL & Provisions
9,596.33
6,361.36
3,483.03
15,258.76
17,890.44
15,461.45
Total Assets
26,471.67
28,870.03
25,467.85
Contingent Liabilities
12,719.78
10,141.63
7,423.38
85.35
81.35
75.59
Miscellaneous
Expenses
Mar '11
Mar '10
3,491.32
2,916.08
2,307.08
Net Sales
3,491.32
2,916.08
2,307.08
Other Income
1,091.34
1,235.51
908.56
4,582.66
4,151.59
3,215.64
Raw Materials
Employee Cost
127.12
89.9
90.5
932.88
848.68
889.25
149.97
240.85
321.35
47.65
41.38
Total Expenses
1,381.35
1,136.20
1,261.98
Operating Profit
2,109.97
1,779.88
1,045.10
PBDIT
3,201.31
3,015.39
1,953.66
Interest
1,553.78
1,286.70
847.24
PBDT
1,647.53
1,728.69
1,106.42
Income
Sales Turnover
Excise Duty
Stock Adjustments
Total Income
Expenditure
Depreciation
139.84
129.77
126.05
50.4
41.47
1,507.69
1,548.52
938.9
-7.16
30.16
2.01
1,500.53
1,578.68
940.91
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
458.77
309.05
175.71
1,041.79
1,269.58
765.06
1,381.34
1,136.18
1,261.98
Preference Dividend
339.68
339.51
339.48
55.1
11.38
16,983.86
16,975.72
16,973.91
6.13
7.48
4.51
100
100
100
85.35
81.35
75.59
Equity Dividend
Corporate Dividend Tax
Per share data (annualized)
Shares in issue (lakh)
H
I
J
2010(Rs.)
Net Sales
Less: Cost of goods Sold
Gross profit =(A-B)
Less: Operating expenses
Administration Exp.
Miscellanea exp.
Total D
100%
979.75
42.47%
1,327.33 57.5300%
2,307.08
2011(Rs.)
2,916.08
938.58
1,977.50
2012(RS.)
100%
32.19%
67.8100%
3491.32
1060
2431.32
100%
30.36
69.64
0
321.35
321.35
0
9.2
9.2
282.23
10.44%
1.79%
12.23%
197.62
5.14%
1.63%
6.77%
1,045.10
45.30
1,779.88
61.04
2109.97
60.43
908.56
39.38%
0.00%
39.38%
1235.51
42.37%
0.00%
42.37%
1091.34
0
1091.34
31.26
0
31.26
0
3015.39
847.24
0.00%
84.68%
36.72%
1286.7
0.00%
103.41%
44.12%
1106.42
47.96%
1728.69
59.29%
126.05
5.46%
129.77
4.45%
980.37
42.50%
1598.92
54.84%
175.71
7.62%
34.88%
309.05
1289.87
10.60%
44.24%
0
3201.31
1553.78
1647.53
139.84
1507.69
458.77
1048.92
91.68
44.5
47.19
4
43.18
13.15
30.35
240.85
41.38
0
908.56
0
1953.66
804.66
149.97
47.65
0
1235.51
% March'11
% March '12
Sources Of Funds
339.48
1.33%
339.51
1.18%
12490.53
49.04%
13470.98
46.66%
0.00%
Net worth
12830.01
50.38%
13810.49
47.84%
Secured Loans
11590.19
45.51%
14700.7
50.91%
Unsecured Loans
1047.67
4.11%
358.85
1.24%
Total Debt
12637.86
49.62%
15059.55
52.16%
Total Liabilities
25467.87
100.00%
28870.34
100.00%
2,002.85
7.86
2,143.37
7.42
339.68
0.15%
14156.88
5.48%
0
0.00%
14496.56 88.00%
11844.67 44.74%
130.45
0.50%
11975.12 45.23%
26471.68 100.00%
Application Of Funds
Gross Block
Less: Accum. Depreciation
273.84
1.08
400.27
1.39
Net Block
1,729.01
6.78
1,743.10
6.03
1,718.51
6.75
2,199.25
7.62
Investments
6,558.88
25.75
7,037.24
24.38
Inventories
6,533.69
25.65
8,389.41
29.06
607.96
2.39
270.21
0.94
37.82
0.15
133.92
0.46
7,179.47
28.19
8,793.54
30.46
11,631.40
45.67
15,415.91
53.40
133.61
0.52
42.35
0.15
18,944.48
74.38
24,251.80
84.00
Current Liabilities
2,047.37
8.04
5,394.09
18.98
Provisions
1,435.66
5.64
967.27
3.35
3,483.03
13.68
6,361.36
22.03
15,461.45
60.71
17,890.44
61.97
0.00
25,467.85
100.00
28,870.03
100.00
Sundry Debtors
Cash and Bank Balance
Fixed Deposits
Total CA, Loans & Advances
Miscellaneous Expenses
Total Assets
2624.35
9.91%
535.86
2.02%
2088.49
7.89%
2077.77
7.85%
7046.65 26.61%
8111.07 30.64%
519.28
1.97%
366.57
1.39%
8996.92 33.99%
15858.17 59.90%
0
0.00%
24855.09 93.89%
9022.55 34.09%
573.78
2.17%
9596.33 36.25%
15258.76 57.64%
0
0.00%
26471.67 100.00%
DLF Comparative Statement of Profit and Loss account for year ended on
Year to year Comparison
2010-2011
A
B
C
D
H
I
J
Particular
Net Sales
Less: Cost of goods Sold
Gross profit =(A-B)
Less: Operating expenses
Administration Exp.
Miscelliance exp.
Total D
2010(Rs.)
2011(Rs.)
2012
(A)
(B)
(C)
3491.32
1060
2431.32
2,307.08
2,916.08
979.75
1,327.33
938.58
1,977.50
240.85
149.97
41.38
47.65
282.23
197.62
0
321.35
321.35
1,779.88
2109.97
1235.51
0
1235.51
0
3015.39
1286.7
1728.69
129.77
1598.92
309.05
1289.87
Difference
D=B-A
609.00
-41.17
650.17
0.00
-90.88
6.27
-84.61
2011-2012
Difference %
%
D/A*100
(%)
F=C-B
F/B*100
26.40
575.24
19.72
-4.20
121.42
12.94
48.98
453.82
22.95
0.00
0.00
0
-37.73
-149.97
-100
15.15
273.70
574.4
-29.98
123.73
62.8
1091.34
0
1091.34
734.78
0.00
326.95
0.00
326.95
70.31
0.00
35.99
0.00
35.99
330.09
0.00
-144.17
0.00
-144.17
18.55
0
-11.67
0
-11.67
0
3201.31
1553.78
1647.53
139.84
1507.69
458.77
1048.92
0.00
1,061.73
439.46
622.27
3.72
618.55
133.34
485.21
0.00
54.35
51.87
56.24
2.95
63.09
75.89
60.30
0.00
185.92
267.08
-81.16
10.07
-91.23
149.72
-240.95
0
6.15
20.76
-4.7
7.76
-5.7
48.44
-18.68
Profit and loss a/c Interpretation:The Sales has increased by 26.40% in comparative figures of 2010 -2011. And Decreased by6.68% in comparative
figure of 2011-2012. A sale has increased at decreasing rate. It indicate in market share and efficient marketing
management strategies has been applied. The cost of goods sold decreased by -41.17%in 2010-2011comparative
figure andit will increased 12.94% it indicate is decrease in cost of goods sold on 2010-2011 however in 2011-2012
indicating in year to year comparison reduction in efficiency due to decrease in production cost or may be due to
change in production process. The operating expenses Administrative exp is decreased in in 2010 as well in 2012
also. Non operatin expenses are increasing in comparative statement of 2010-2011 to 2011-2012. While there is
decline in Net profit after tax as well in net profit before tax as per this comparative statement.
March '11
March '10
2010-11
difference
2011-2012
%
difference
d=a-b
[d /a *100]
e=b-c
[e /b *100]
-0.17
-685.9
0
-686.07
2856.03
228.4
3084.43
2398.36
-0.05007
-5.09169
0
-4.96775
19.42785
63.64776
20.48155
8.307436
0
0
-480.98
-135.59
-345.39
121.48
-9.41
278.34
-249.07
-232.65
-203.38
-442.26
42.35
-603.29
-3628.46
393.49
-3234.97
2631.68
2398.36
0
0
-22.4404
-33.8746
-19.8147
5.523701
-0.13372
3.317754
-92.1765
-173.723
-2.31283
-2.86885
100
-2.48761
-67.2673
40.68047
-50.8534
14.70998
8.307439
Sources Of Funds
Equity Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
339.68
14156.88
0
14496.56
11844.67
130.45
11975.12
26471.68
339.51
339.48
-0.03
13,470.98
12,490.53
-980.45
-7.84
13,810.49
12,830.01
-980.48
-7.64
14,700.70
11,590.19
-3110.51
-26.84
358.85
1,047.67
688.82
65.74
15,059.55
12,637.86
-2421.69
-19.16
28,870.04
25,467.87
-3402.17
-13.36
Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Total Assets
2624.35
535.86
2088.49
2077.77
7046.65
8111.07
519.28
366.57
8996.92
15858.17
0
24855.09
9022.55
573.78
9596.33
15258.76
26471.67
2,143.37
2,002.85
-140.52
-7.01
400.27
273.84
-126.43
-46.17
1,743.10
1,729.01
-14.09
-0.81
2,199.25
1,718.51
-480.74
-27.98
7,037.24
6,558.88
-478.36
-7.3
8,389.41
6,533.69
-1855.72
-28.4
270.21
607.96
337.75
55.55
133.92
37.82
-96.1
-254.78
8,793.54
7,179.47
-1614.07
-22.48
15,415.91
11,631.40
-3784.51
-32.15
42.35
133.61
91.26
68.3
24,251.80
18,944.48
-5307.32
-28.01
5,394.09
2,047.37
-3346.72
-163.47
967.27
1,435.66
468.39
32.62
6,361.36
3,483.03
-2878.33
-82.68
17,890.44
15,461.45
-2428.99
-15.7
28,870.03
25,467.85
-3402.18
-13.36
Balance sheet Interpretation:In comparative balance sheet there is decrease in equity share capital as compare to 2010-2011 to 2011-2012. Same
way there is increase in net worth by -7.67% to -4.96% in 2011- 2012. On the same way there is also current liability
which is increased by -67.26%as compared to previous year. The company has geared down by not utilizing external
interest bearing funds. The company fixed asset ha mildly increased by 29.21% indicating small expansion of business or
improvement for long term benefits.
Dlf Trend Analysis of Profit and Loss statement for year ended on 31
March
Particular
Net Sales
Less: Cost of goods Sold
Gross profit =(A-B)
Less: Operating expenses
Administration Exp.
Miscellanea exp.
Total D
Operating profit (C-D)
Add: non operating income
Other income
2010(Rs.)
2,307.08
979.75
1,327.33
100.00%
100.00%
100.00%
100.00%
41.38 100.00%
282.23 100.00%
240.85
1,045.10
908.56
908.56
0
1953.66
847.24
1106.42
126.05
980.37
175.71
804.66
100.00%
100.00%
100.00%
100.00%
0.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
2011(Rs.)
2012(RS.) %
3491.32 151.33%
2,916.08 126.40%
938.58 95.80%
1060 108.19%
1,977.50 148.98%
2431.32 183.17%
62.27%
115.15%
47.65
197.62 70.02%
149.97
1,779.88 170.31%
0.00%
1235.51 135.99%
1235.51 135.99%
0.00%
0
154.35%
3015.39
1286.7 151.87%
1728.69 156.24%
129.77 102.95%
1598.92 163.09%
309.05 175.89%
1289.87 160.30%
0
0.00%
321.35 776.58%
321.35 113.86%
2109.97
1091.34
1091.34
0
3201.31
1553.78
1647.53
139.84
1507.69
458.77
1048.92
201.89%
0.00%
120.12%
120.12%
0.00%
163.86%
183.39%
148.91%
110.94%
153.79%
261.09%
130.36%
Interpretation:The net sales has increased continuously proportionately throughout from 2010 to 2012. The cost of goods sold
however increased at increasing rate comparatively indicating either due increase in cost of manufacturing or lower
efficiency in manufacturing. The Administrative exp. and miscellaneous exp. Are constantly increased there for
entire effect of increased in operating exp. The net profit after Tex has shown increasing trend though it shown lower
130.36% due to non operating expenses and higher in 2011 at 160.30% due to increase in non operating income.
Ratio Analysis
INTRODUCTION OF RATIO ANALYSIS: The relationship of these two figure expressed mathematically is called a ratio. The ratio to the
numerical or quantities relationship between two variables or times. A ratio is calculated by dividing
one item of the relationship with the other. The ratio analysis is one of the most useful and common
methods of analyzing financial statement. Ratio enables the mass of data to be summarized and
simplified. Ratio analysis is an instrument for diagnosis of the financial health of an enterprise.
It refers to the systematic use of ratios to interpret the financial statements in terms of the operating
performance and financial position of a firm. It involves comparison for a meaningful interpretation of
the financial statements.
In view of the needs of various uses of ratios, which can be calculated from the accounting data are
classified into the following broad categories.
A ratio is only a comparison of the numerator with the denominator. The tern ratio reefers to the
numerical or quantitative relationship between two figures and obtained by dividing th
Ratio analysis is an important and age old technique of financial analysis. The data given in financial
statements ratio are relative form of financial data and very useful techniques to cheek upon the
efficiency of a firm. Some ratio indicates the trend or progress or downfall of
Importance of Ratio:
Ratio analysis of firms financial statement is of interest to a number of parties mainly.
Shareholders, creditor, financial executives etc. shareholders are interested with earning capacity
of the firm: creditors are interested in knowing the ability of firm to meet financial obligation and
financial executives are concerned with evolving analytical tools that will measures and compare
costs, efficiency liquidity and profitability with a view to making intelligent decisions.
A. CURRENT RATIO
The current ratio measures the short-term solvency of the firm. It establishes the relationship
between current assets and current liabilities. It is calculated by dividing current assets by
current liabilities.
Current Ratio = Current Asset
Current Liabilities
Current assets include cash and bank balances, marketable securities, inventory, and debtors,
excluding provisions for bad debts and doubtful debtors, bills receivables and prepaid expenses.
Current liabilities includes sundry creditors, bills payable, short- term loans, income-tax liability,
accrued expenses and dividends payable.
Year
Current asset
Current liabilities
Ratio
2012
8996.92
9022.55
0.99
2011
8793.54
5394.09
1.63
2010
7179.47
2047.37
3.51
INTERPRETATION:
In the comparison of Three years Current Ratio, Current ratio of Dlf is (3.51) in 2010, which is higher to both
year.
Year 2011 has increased ratio which shows company is able to satisfy its short term Obligation. The current
ratio of 2010 3.51 which shows current situation of iorganization.
Year
Total sales
Total assets
Ratio
2012
3491.32
26471.67
0.13
2011
2916.08
28870.03
0.10
2010
2307.08
25467.85
0.09
INTERPRETATION:
In the Year of 2012, comparison of three years Total Asset Turnover Ratio of Dlf is (0.13) is the two year
which is increased from last two years. This ratio shows the total asset turnover during year. In 2010 and in
2011 the ratio was increased by year to year.
Total Sales
Working Capital
Working capital is represented by the difference between current assets and current liabilities.
Year
Total sales
Working Capital
Ratio
2012
3491.32
-25.63
-136.22
2011
2916.08
2299.45
0.86
2010
2307.08
5732.10
0.45
INTERPRETATION:
In the Year of 2011, comparison of three years Net working capital turnover ratio of Dlf is (0.86) which is
higher than other years.
Net Working Capittal of dlf is higher in 2011 0.86 which is increased. In 2012 the net workin capital turnover
ratio shows negative in it is decreased form the previous year.
Net sales
Average Inventory
The average inventory is simple average of the opening and closing balances of inventory.
(Opening + Closing balance /2). In certain circumstances opening balance of the inventory
may not be known then closing balance of inventory may be considered as average inventory
Year
Net sales
Average inventory
Ratio
2012
3491.32
8250.24
0.42
2011
2916.08
7461.55
0.39
2010
2307.08
6490.56
0.36
INTERPRETATION:
In the Year of 2012, comparison of three years Inventory Turnover Ratio of Dlf is (0.42) which is higher than
other two years.
Year 20012 has highest Inventory Turnover Ratio which is not a better for the company rather than other years.
company inventory are decrease for 2011 as well in 2010 also. Company will in improve the inventory turnover
during the specific year.
Ratio
2012
1041.79
0.00
339.68
3.06
2011
1269.58
0.00
339.51
3.74
2010
765.06
0.00
339.48
2.25
In the Year of 2011, comparison of three years Net working capital turnover ratio of Dlf is (3.74) which is
higher than other years. For the company are good wealth for the year and get more benefit on share capital to
the the share holder. In current year the earning capital per share ratio is decreased by 3.06.