1.1 Company Profile: Financial Anlysis of DLF LTD

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
S.V. INSTITUTE OF MANAGEMENT, KADI 1
BATCH 2008-10
results ending 30th June 2007. The company reported a turnover

of Rs. 3,120.98 Crore and PAT at Rs. 1,515.48 Crore.
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
BATCH 2008-10
environment. DLF has also tied up with Hilton 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
BATCH 2008-10
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.
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.It
has 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 commissioned into the renowned
BATCH 2008-10
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.

BATCH 2008-10
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).

BATCH 2008-10
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
BATCH 2008-10
Delhi at New Delhi and by the Hon'ble High Court

of Punjab and Haryana At Chandigarh came into
effect on 09.10.2000.
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

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
BATCH 2008-10
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
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
the
incorporation of Raisina Cold
Storage and Ice Company Private Limited on 16.03.1946 and
Delhi Land
and Finance Private
Limited on 18.09.1946. Since the inception of our Company, Mr.
KP
Singh has been the promoter
of the Company.
Pursuant to the order of the Delhi High Court dated 26.10.1970,

Delhi
Land and Finance Private
Limited and Raisina Cold Storage and Ice Company Private
Limited
along with another group
company, DLF Housing and Construction Private Limited,
merged with
DLF United Private Limited
with effect from 30.09.1970.
Thereafter, DLF United Limited merged with our Company, then

known as
American Universal Electric
(India) Limited, with effect from 1.10.1978, under a scheme of
amalgamation sanctioned by the Delhi
High Court and the Punjab and Haryana High Court.The merged
entity
was renamed as 'DLF Universal
Electric Limited' with effect from 18.06.1980.
BATCH 2008-10
Key events and milestones
2007 : DLF enters into a joint venture with Prudential

Insurance
to establish a joint venture company to
undertake life insurance business in India.
- DLF launches bn issue.
3.3 COMPANY PROFILE
BUSSINESS GROUP : DLF GROUP

BATCH 2008-10
LISTINNNG : BSE,NSE
ISIN NO : INE271C01023
I 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-122 002
Chairman (Haryana)
Mr. Rajiv Singh

Vice-Chairman Corporate Office
DLF Centre, Sansad Marg,
Mr. T.C. Goyal New Delhi-110 001
Managing Director
Ms. Pia Singh Statutory Auditors

Whole - Time Director M/s. Walker, Chandiok &
Co
Mr. Kameshwar Swarup

Senior Executive Director – Legal Registrar & Share
Transfer Agents
M/s.Karvy Computershare
Private Ltd.
Non-Executive Directors Listed at

Bombay Stock Exchange
Mr. G.S. Talwar National Stock Exchange
Dr. D.V. Kapur
Mr. K.N. Memani
Mr. M.M. Sabharwal Company Secretary
Mr. Ravinder Narain Mr. Subhash Setia
Mr. B. Bhushan
Brig. (Retd.) N.P. Singh

BATCH 2008-10
1
6 2
8 12
7. 1
M 12
M 0
M s. 12
s. Pi
s. Pi M
1 Pi 2 a 4 1 5.
Si ng s. Mr s.
Si s. s.
ng r. a
ng h Pi .
ng Pi hPi R PiSi
h 2. a R
h a a
2. aji a ng
Si 2. Si Mr Si aji Si
FINANCIAL
2.
M ANLYSIS OF .DLF LTD
M v h
M ng ng
r. Si ng v ng2.
r. R h Si h
r. h Rh ng M
R aji 2. ng 2.
R 2. 2.
aji h 3. r.
aji v M h
aji M vM 3.Dr MR
v Si r. 3. r.
v r. r.
Si Dr. aji
Si ng R Dr R
Si R R
ng . K. v
ng h aji .
ng aji haji K.P. ajiSi
h 3. v K. v
3.4Management
h v
3. Si
3.
Dr
v
3.
Si
Dr
P.Si
Sing
Dr Si P. Si
. ng Si ng
ng
h
Dr ng .ng ngh 3.
. K. h ng h
. h h
K. h 4. Dr
K. P. 3. h
K. 3. 3.
P. 4.Mr 3..
P. Si Dr 4. Dr
P. Dr Dr
Si M. K.
Si ng . Mr .
Si . .
ng r. T. P.
ng h K. .
ng K. hK. T.C. K.Si
h 4. P. T. P.
h P. P.
4. C.G ng
4. Mr Si C. Si
4. Si MSi G oy h
M . ng G
M ng ng
r. oyal ng4.
r. T. h oy h
r. h h
T. al5. M
T. C. 4. al 4.
T. 4. 4.
C. 5.Mr r.
C. G M 5. M
C. M GM M. T.
G oy r. Mr r.
G r. r.
oy r. M. C.
oy al T. .
oy T. T.
al M.M. T.G
al 5. C. M. C.
al C. C.
5. M.Sa oy
5. Mr G M. G
5. G MG Sabh al
M . oy Sa oy
M oy oy
r. bhar 5.
r. M. al bh al
r. al al
M. arw M
M. M. 5. ar 5.
M. 5. 5.
M. w al r.
M. Sa M w
M. M M
Sa al(S M M.
Sa bh r. al r.
Sa r. r.
bh (Sta M.
bh ar M. (S M.
bh M. M.
ar tand Sa
ar w M. ta M.
ar M. wM. ndin bh
w al Sa nd Sa
w Sa Sa
al ing) ar
al (S bh in bh
al bh bh
(S g): w
(S ta ar g) ar
(S ar ar
ta : 6. al
ta nd w :
ta w w
nd 6.Mr w (S
nd in al 6. al
nd al
(Sitting): 1. Ms. alSinghM 2. Mr.
Piain ta 3. Dr. K.P. Singh 4. Mr. T.C.
in . g) Rajiv Singh
(S Mr (Snd
Goyal in (S g) (S
g) r. R
: ta .
ta Sabharwal
g) M.
5. Mr. M. :ta R av tain
nd : nd 6. nd R ndg)
:
(Standing): 6. 6. av
in 6. Mr. Ravinder
in
inNarain
Mr in7. Mr.
av G.inB.
S. Talwar 8. Mr. K. Swarup 9.
6.
Dr. D. V. Kapur 10. M
Mr. K. in
N. deMemani11. Mr. : Bhushan 12. Brig. (Retd.) N.
M . g) in g)
M g)
P. Singh
g)
r. der 6.
r. R : de :
r. : R: r N M
R av 6. r
R 6. 6.
av N ar 6.r.
av in M N
av M M
in arai MR
r. in r. de r. ar r.
in de ain av
de r R ai R
de R rR n 7. in
r N av n
r av Nav 7.Mr avde
N ar in 7. in
N in in
ar M. r
ar ai de Mr de
ar de de
ai r. G. N
ai n r .
ai r nr G.S. r ar
n 7. N G. N
n N N
7. S.Ta ai
7. Mr ar S. ar
7. ar Mar Talw n
M . ai Ta ai
M ai ai
r. lwar 7.
r. G. n lw n
r. n n
G. ar8. M
G. S. 7. ar 7.
G. 7. 7.
S. 8.Mr r.
S. Ta M 8. M
S. M M
Ta M. G.
Ta
(Arrangement hint) lw r. Mr r.
Ta r. r.
lw r. K. S.
lw ar G. .
lw G. G.
ar K.S G.Ta
ar 8. S. K. S.
ar S. S.
8. Sw lw
8. S.V. INSTITUTE OF MANAGEMENT,
Mr Ta S KADI 12
8. Ta MTa w ar Taar
M .
BATCH w
2008-10
M lw lw
r. arup lw lw8.
r. K. ar ar ar
r. ar ar
K. up9. M
K. S 8. up 8.
K. 8. S8. 9.Dr r.
S w M 9. M
S M wM Dr. K.
w ar r. Dr r.
w r. r.
ar . D. S
ar up K. .
ar K. K.
up D.V. K.w
up 9. S D. S
up S S
9. V.Ka ar
Dr ar .ar pur ar ar9.
up . up D. up pu up
. D. r 10 Dr
D. V. 9. r
D. 9. 9.
V. 10. 9..
V. Ka Dr 10 Dr
V. Dr Dr
Ka . Mr D.
FINANCIAL
Ka .
Ka ANLYSIS
.
pu M. OF DLF
pu . LTD . . V.
pu r D. Mr D.
pu D. rD. r. K. Ka
r 10 V. .
r V. V.
10 K.N. V.pu
10 . Ka K. Ka
10 Ka .Ka N.M r
. Mr pu N. pu
. pu Mpu Me 10
M . r M r
M r r
r. em .
r. K. 10 e
r. 10 10
K. man 10M
K. N. . m .
K. . .
N. ani r.
N. M M an M
N. M M i 11 K.
M e r. i
1.5 DLF
M r.
e K.
e
m
e
m
r.
K.
11.
. Mr Today,
m K. 11 K.
an N. .
r. N.
M and
m N. N.
an M. N.e
tomorrow:-
an M
i e
an
i
iM
e
11
r. B.
B.B
i
11
M Mr M m
e . e an
11 . m B. mi
11 m .m B hu
. Mr an B
1.6MILESTONE
. an an ACHIVED an11
VISION MISSION VALUES
M hush
M . i hu i
M i i
r. shan .
r. B. 11 sh 11
r. 11 11
B. an12 M
B. B . an .
B. . B. 12. r.
•To B contribute •To
hu build
M 12world-class •Sustained efforts to
B M M
hu . Br M B.
significantly hu sh .
hu r. r.
sh Brig. real r. estate r. B concepts enhance customer value
sh an B. Br B.
to building
sh B. the newB.
an Indiaig.(R across hu and quality
B an B 12 B ig. B
an
and become 12 (R
the world’s et six sh
hu 12 . business
hu (R huan
lines with •Ethical and professional
most 12valuable .huestate
real etd. the highest standards of service
. Br sh et sh
. sh sh
Br d.) 12
Company.
Br an
Br an
ig. ) N. professionalism,
ig. an d. an
. ethics, •Compliance and respect
ig. (R )
ig. 12 12
(R N.P. Quality 12 and
12Br customer forall community,
(R et . N. .
(R . .
et P.Si service. ig. environmental
et d. Br P. Br
et Br Br
d. Sing (R and legal requirements.
ig. d. ig. ) ig. Si ig.
d. ) ngh et
) N. ng
) (R (R
N. h (R (Rd.
DLF has charted
N. its next growth P. et steps
h toet All the intensified growth underlines DLF’s
N. et et
P. )
retain its P. Si d. commitment to quality, trust and customer
P. d. d.
Si d.N.
Leadership Si position in India. ng Already a
) P.sensitivity and, delivering on its promise
Si ) )
ng )
major ng
player h N.Siwith agility
ng N. hN. N.
in locations h across the country, including and financial prudence.
h P. P. P. P.ng
metro Si Si Si SihDLF’s aspirations for India soars higher than
and keyngurban centers, ng DLF, with over
ng six
ng developing world class buildings and
decadesh h h h infrastructure.
of experience, is focusing on strengthening The group recognises its inherent role as a
its catalyst
Lateral and vertical business drivers. These of change in the socio-economic
include transformation of
development of innovative business the country.
strategies, With the growth of the Indian economy and
strengthening its professional resources and the
driving resulting increase in corporate and
market penetration with an ear-to-the- consumer
ground incomes, as well as foreign investment, DLF
Approach that is adaptive to local market sees
needs. signifi cant opportunities for growth across
The group is capitalizing on emerging all its
market opportunities to deliver high-end business verticals. DLF’s mission is to build
facilities and projects to its wide base of a worldclass
customers byconstantly upgrading its real estate development company with the
internal skills and resource highest standards of professionalism, ethics
Capabilities. and
In line with its current expansion plans, DLF customer service and to thereby contribute
has over 751 million sq. ft. of planned to and
projects underS.V. way, across all OF
INSTITUTE its MANAGEMENT,
business benefi KADI t from the growth of the Indian
13
verticals. This land bank isBATCH spread 2008-10
over 32 economy.
cities, mostly in metros and key This is DLF, Building India.
urban areas across India.
1.7 DLF’S PARTNER IN BUILDING INDIA

BATCH 2008-10
Project Execution
DLF 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.
Construction
In 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 Modernisation
DLF 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
BATCH 2008-10
each in the special purpose vehicle.The companies signed a

memorandum of cooperation in April 2007 to explore airport
projects.
Township Development
DLF has signed an MoU with property developer Nakheel LLC
of 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.
Hospitality
DLF'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 Infrastructure
DLF has partnered with IBM to outsource all its IT
requirements to the global IT infrastructure giant. Under this
BATCH 2008-10
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 Management
DLF and Prudential Financial Inc. (PFI) of US, have signed a
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.

BATCH 2008-10
1.8CORPORATE SOCIAL RESPONCIBILITY
We dream, We dare
We grow, We share
We build, We care
CSR Initiatives
While 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.
BATCH 2008-10
Swapana Sarthak informal school

In 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 Centres

Taking 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 hutment

While 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 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

BATCH 2008-10
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 Centres

In 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 craftsmen

While 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 centres

As 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 Mandir

DLF Commercial Developers Ltd. has contributed Rs.20 lacs towards the
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.

BATCH 2008-10
Environment Programs
Haryana 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 villages
e. 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 programme

Before 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.
EXECUTIVE SUMMARY
D L F Ltd. Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007 Mar 2008

BATCH 2008-10
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 6062.03
Sales 270.02 472.92 442.04 983.94 1130.62 5530
Income 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 3481.38

Raw material expenses 0 0 0 0 0 0
Power, fuel & water charges 0.95 0.89 1.03 0.23 0.69 1.34
Compensation to employees 15.71 21.41 33.34 16.76 44.83 144.17
Indirect taxes 3.86 5.13 4.75 1.39 4.57 5.03
Selling & distribution expenses 12.13 20.5 24.95 28.04 64.87 47.43
Other operational exp. of indl. enterprises 205.92 365.12 259.29 577.63 85.13 1830.46
Other oper. exp. of non-fin. service enterprises 0 0 0 0 0 0
PBDITA 46.71 59.74 129.34 488 1129.04 3923.53

PBDTA 41.73 50.83 99.39 352.01 630.03 3143.03
PBT 39.2 48.07 96.87 348.99 621.47 3118.11
PAT 26.95 35.48 67.69 228.52 406.91 2574.59
Net worth 283.91 317.82 383.93 644.93 652.8 11269.15

Paid up equity capital (net of forfeited capital) 3.51 3.51 3.51 37.77 305.88 340.96
Reserves & 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 8386.28

Current 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 23441.94

Gross fixed assets 44 86.04 505.43 565.64 1030.62 3315.52
Net fixed assets 18.64 59.34 478.64 536.4 993.61 3256.17
Investments 167.41 177.27 173.82 1397.28 769.18 1839.83
Current assets 1102.68 1402.31 997.12 1285.96 6069.75 11287.1
Loans & 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
-
PAT 21.7479675 31.6512059 90.78354 237.597873 78.0631892 532.717308
Net worth 9.06192379 11.9439259 20.8010824 67.9811424 1.22028747 1626.27911
Total assets 5.47935858 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 worth 8.46700843 11.6563907 19.2290702 44.1809381 62.5553852 43.1895789
PAT/Avg. net worth 9.90390092 11.7926645 19.2917706 44.4219816 62.7110416 43.1907532
PAT Net of P&E/Avg. total assets 1.70026235 2.04299791 3.0634623 6.15138946 5.00131224 14.8614396
BATCH 2008-10
PAT/Avg. total assets 1.98880513 2.0668824 3.07345136 6.18495037 5.013757 14.8618437
Liquidity ratios (times)

Current ratio 1.00994669 1.17260785 0.72627155 0.7568032 1.42027639 1.50618777
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
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 assets 0.21331503 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
CHAPTER 2
COMPARATIVE
BATCH 2008-10
BALANCESHEET
&
ANALYSIS
OF
BALANCESHEET
Chapter:2 COMPARISON & ANALYSIS OF

BALANESHEET
 SOURCES OF FUNDS :-
EXHIBIT 2.1

BATCH 2008-10
LIABILITY Mar ' 04 Mar ' 05 Mar ' 06 Mar ' 07 Mar ' 08
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 ' 04 Mar ' 05 Mar ' 06 Mar ' 07 Mar ' 08
Chart 2.1.1

BATCH 2008-10
Equity ShareCapital
400
350
300
250
Equity Share
200
Capital
150
100
50
0
Mar ' 04 Mar ' Mar ' 06 Mar ' 07 Mar ' 08
05
 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 2008 it is 340.96crore
& it is 3.5 crores in 2004 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 2004. than company is increasing reserves in
march 2008 with very high rate is 10928.19. so company is
maintaining very high reserves.

BATCH 2008-10
Chart 2.1.1
Reserves &Surplus
12000
10000
8000
6000 Reserves &Surplus
4000
2000
0
Mar ' Mar ' Mar ' Mar ' Mar '
04 05 06 07 08
(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
Secured Loans
7000
6000
5000
4000
Secured Loans
3000
2000
1000
0
Mar ' 04
S.V. INSTITUTE
Mar ' 05 Mar ' 06
OF MANAGEMENT,
Mar ' 07 Mar ' 08
KADI 27
BATCH 2008-10
INTERPRETATION: -Company is more using secured

loan. In previously company is using more loan money
for company. In 2007 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
4000
3500
S.V. INSTITUTE OF MANAGEMENT, KADI
BATCH 2008-10
28
3000
INTERPRETATION: -company have some unsecured

loan in the year 2004 is 3.2 is very growing in 2008 is
3440.49.so company must maintain the situation and
reduce unsecured loan.
 USES OF FUNDS:-

BATCH 2008-10
EXHIBIT
USES OF FUNDS Mar ' 04 Mar ' 05 Mar ' 06 Mar ' 07 Mar ' 08
Fixed 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

Current Assets, Loans & Advances 1,392.70 1,710.39 3,092.12 9,442.25 18,345.94
Less : Current Liabilities & 602.3 1,345.82 1,366.95 3,782.93 3,786.38
Provisions
Total Net Current Assets 790.4 364.57 1,725.17 5,659.32 14,559.56
Miscellaneous expenses not 0 0 0 0 0

written
Total 1,018.40 1,017.02 3,658.85 7,422.09 19,655.55
USESOFFUND
16000
14000 FIXEDASSETS
12000
10000 Capital Work-in-
progress
8000
Investments
6000
4000 Total Net Current
2000 Assets
0
04 05 06 07 08
(A)FIXED ASSETS :-
EXHIBIT 2.2
BATCH 2008-10
FIXED ASSETS 48.3 72 79.67 328.57 1,474.37
Chart 2.1.1
FIXEDASSETS
1600
1400
1200
1000
800 FIXEDASSETS
600
400
200
0
04 05 06 07 08
INTERPRETATION: - company’s assets are 48.3 in

2004 but it is increase at 1474.37in 2008 so it
is high increasing in assets.
I
(B)Capital Work-in-progress :-
EXHIBIT 2.2
Capital Work-in-progress 2.4 406.63 456.73 665.03 1,781.79
Chart 2.1.1

BATCH 2008-10
Capital Work-in-progress
2000
1800
1600
1400
1200
Capital Work-in-
1000
progress
800
600
400
200
0
04 05 06 07 08
INTERPRETATION: - company’s work in progress is

also in increasing stage.
(C) Investments:-
EXHIBIT 2.2
Investments 177.3 173.82 1,397.28 769.17 1,839.83
Chart 2.1.1
Investments
2000
1800
1600
1400
1200
1000 Investments
800
600
400
200
0
Mar' 04 Mar ' Mar ' 06 Mar ' 07 Mar ' 08
05
INTERPRETATION: -company’s investment is also at

increasing stage it is 1839.83 in 2008. so company
have good security.
BATCH 2008-10
(D) Total Net Current Assets:-

EXHIBIT 2.2
Total Net Current Assets 790.4 364.57 1,725.17 5,659.32 14,559.56
Chart 2.1.1
Total Net Current Assets
16000
14000
12000
10000
Total Net Current
8000
Assets
6000
4000
2000
0
04 05 06 07 08
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 2008.

BATCH 2008-10
CHAPTER 3
COMPARISON
&
ANALYSIS
OF
PROFIT & LOSS ACCOUNT

BATCH 2008-10
Chapter:3 INCOME STATEMENT

EXHIBIT 3.1
D L F Ltd. Mar Mar Mar Mar Mar

2004 2005 2006 2007 2008
Rs. Crore 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 495.83 479.78 1146.14 1430.72 6062.03
Sales 472.92 442.04 983.94 1130.62 5530
Industrial sales 445.77 412.24 948.83 1092.33 5490.08
Income from non-financial 27.15 29.8 35.11 38.29 39.92
services
Income from financial services 19.81 33.76 159.43 294.74 517.83
Interest 10.18 23.95 154.54 288.67 426.69
Dividends 0 0 0 0.28 85.33
Treasury operations 0.01 0 0 0.05 0.56
Other income 2.45 3.25 1.3 4.1 13.78
Prior period income & 0.65 0.73 1.47 1.26 0.42
extraordinary income
Change in stock -6.93 0 -2.58 -8.72 -6.06
INCOME ANALYSIS :- Chart 3.1

BATCH 2008-10
INOME
Sales
6000
Rs IN CRORE
Industrial
5000 sales
4000
Incomefrom
3000 non-financial
services
2000 Income from
financial
1000
services
0 Interest
Mar Mar Mar Mar Mar
2004 2005 2006 2007 2008 Other income
 Total income:-
EXHIBIT 3.1.1
D L F Ltd. Mar 2004 Mar 2005 Mar 2006 Mar 2007 Mar 2008
Total income 495.83 479.78 1146.14 1430.72 6062.03
Sales 472.92 442.04 983.94 1130.62 5530
Industrial sales 445.77 412.24 948.83 1092.33 5490.08
Chart 3.1.1

BATCH 2008-10
SALES
12000
10000
8000
Industrial sales
6000
Sales
4000
2000
0
Mar Mar Mar Mar Mar
2004 2005 2006 2007 2008
INTEREST:-
EXHIBIT 3.1.2
Interest 10.18 23.95 154.54 288.67 426.69
Chart 3.1.2

BATCH 2008-10
Interest
450
400
350
300
250
Interest
200
150
100
50
0
Mar Mar Mar Mar Mar
2004 2005 2006 2007 2008
 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 1830.46
Other 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

BATCH 2008-10
Loss on securitisation of assets/loans 0 0 0 0 0

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
Chart 3.2.1
Total expenses
4000
3500
3000
2500
2000 Total expenses
1500
1000
500
0
Mar Mar Mar Mar Mar
2004 2005 2006 2007 2008
 PROFIT :-
EXHIBIT3.2.2

BATCH 2008-10

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

BATCH 2008-10
COMMON
SIZE
STATEMENT
COMMON SIZE ANALYSIS

EXHIBIT 4.1
SOURCES OF FUNDS 12 months 12 months 12 months 12 months 12 months
Owner's Fund

BATCH 2008-10
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 Reserve
Less : Accumulated 0 0 0 0 0
Depreciation
Net Block 7.5 4.427 2.1775 7.08 4.7427
Capital Work-in-progress 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 & 0 0 0 0 0
Advances
Less : Current Liabilities & 0 0 0 0 0
Provisions
Total Net Current Assets 74.07 76.25 47.15 35.85 77.612
Miscellaneous expenses not 0 0 0 0 0

written
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 2003-04
was 44.56% & in year 2004-05 it was also increased up
to 37.4% but in year 2005-06 was decreased up to
16.60% & in the year 2006-07 it increase to 4.67% & in
the year 2007-08 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.

BATCH 2008-10
Chart 3.2.1
sources of fund 2004 0.3142,

0%
0.3437,
54.782, 0%
55% 44.56,
45%
Equity Share Capital Reserves & Surplus

Secured Loans Unsecured Loans
Chart 3.2.2
sources of fund 2005
0.29
0.34
37.4
61.96

Chart 3.2.1

BATCH 2008-10
sources of fund 2006

0.0817
1.0323
16.594
82.29
Chart 3.2.1
sources of fund2007 7.09
4.12
4.67
84.11


BATCH 2008-10
Chart 3.2.1
sources of fund2008
17.5 1.73
25.16
55.6

(B) APPLICAYION OF FUND:-

1. Fixed Assets: According to common size statement, fixed
assets of the company in years 2002-03, 2003-04, 2004-05,
2005-06 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

BATCH 2008-10
application of fund 2004

4.7427, 5%
0.2357, 0%
17.41, 17%
77.612,
78%
Fixed Assets Capital Work-in-progress

Investments Total Net Current Assets
Chart 3.2.1
35.85, 36% 7.08, 7%
39.98, 40%
17.09, 17%


BATCH 2008-10
Chart 3.2.1

2.1775, 2%
12.483,
47.15, 48%
12%
38.19, 38%

Chart 3.2.1
4.427, 4%
8.96, 9%
10.36, 10%
76.25, 77%

BATCH 2008-10
Chart 3.2.1
Application of fund 2008 , 0%
7.5, 8%
9.07, 9%
9.36, 9%
74.07, 74%
Fixed Assets Fixed Assets

Capital Work-in-progress Investments
Total Net Current Assets
2. Investments: The investments of the company in year

2003-04 was 17.41% but it was decreased by 17.09% in
year 2004-05 but it has increased by 38.19% in year 2004-
05. In the year 2007-08 it was highest increase of
investment i.e. by 9.97%. But in the year 2006-07 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 2003-04, 2004-05, 2005-06 accordingly.
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.

BATCH 2008-10
COMMON SIZE ANALYSIS PROFIT & LOSS
Partiular Mar '04 Mar '05 Mar '06 Mar '07 Mar '08
Sales and Total
Income 100% 100% 100.00 % 100% 100%
56.41
Total Expenses 87.83% 71.95% % 30.59% 39.97%
BATCH 2008-10
Operating Profit 13.84% 19.62% 26.84 % 46.36% 50.76%
PBT (Post Extra-ord 30.55

Items) 7.8% 20.37% % 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%
Chart 3.2.1
PROFIT STATEMENT2004
2.89, 2%
7.8, 7%
7.16, 6%
13.84, 12%
87.83, 73%
Total Expenses Operating Profit

PBT (Post Extra-ord Items) Tax
Reported Net Profit
Chart 3.2.1

BATCH 2008-10
6.13, 5% 14.241538,
20.37, 15% 11%
19.62, 15% 71.95, 54%

Reported Net Profit
Chart 3.2.1
PROFIT STATEMENT 2006

19.91 ,
34.52 , 12%
21% 56.41 ,
33%
30.55 ,
18% 26.84 ,
16%
Reported Net Profit
Chart 3.2.1
28.57
30.59
15.11
43.75
46.36

Reported Net Profit
Comment on Profit & Loss Account:

BATCH 2008-10
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 2006-07. 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.
Total Expenses 87.83783784 71.95237394 56.40693399 30.58954394 39.9691001
Chart 3.2.1
Total Expenses
100
90
80
70
60
Total
50
Expenses
40
30
20
10
0
Mar Mar Mar Mar Mar
'04 '05 '06 '07 '08
3. Profit before Tax: PBT in year 2004 is 6.31%. It was in

year 2005, 2006 2007 &2008it is 7.80,20.37,30.55,
43.75& 51.52 respectively.company have very high
amount of profit ith increasing rate.
PBT (Post Extra-ord
Items) 7.801532876 20.37991459 30.55331816 43.75255206 51.52500083
Chart 3.2.1

BATCH 2008-10
PBT(Post Extra-ordItems)
60
50
40
PBT(Post
30 Extra-ord
Items)
20
10
0
M ar M ar M ar M ar M ar
'04 '05 '06 '07 '08
4. Profit after Tax: According to common size statement

PAT of the company for the year 2004 is 7.16% & than it
has been increased to 14.24% in 2005 and than it has
been reduced to 28.56%in the year 2007 & 42.53 in year
2008.
Reported Net Profit :
Reported Net Profit 7.1601452 14.241538 19.91245 28.566903 42.53941
Chart 3.2.1
ReportedNet Profit
45
40
35
30
25 ReportedNet
20 Profit
15
10
5
0
Mar Mar Mar Mar Mar
'04 '05 '06 '07 '08

BATCH 2008-10
CHAPTER 5
TREND
ANALYSIS

BATCH 2008-10
TREND ANALYSIS OF PROFIT & LOSS

A/C
PARTICULAR MAR'04 MAR'05 MAR'06 MAR'07 MAR'08
Income
Sales Turnover 100 83.14 192.30 222.19 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
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:-

BATCH 2008-10
(A)Sales Turnover :-
Sales Turnover 100 83.14 192.3 222.19 1108.7
Chart 3.2.1
Sales Turnover
1200
1108.7
1000
800
600
400
200 192.3 222.19

100 83.14
0
MAR'04 MAR'05 MAR'06 MAR'07 MAR'08
(B)Total Income
Total Income 100 95.87 230.37 286.49 1220.61
Chart 3.2.1

BATCH 2008-10
Total Income
1400
1200 1220.61
1000
800
600
400
286.49
200 230.37
100 95.87
0
(C) Operating Profit

Operating Profit 100 111.31 508.45 1091.94 5094.61
Chart 3.2.1
Operating Profit
6000
5000 5094.61
4000
3000
2000
1000 1091.94
508.45
0 100 111.31

BATCH 2008-10
(D)Reported Net Profit
Reported
Net Profit 100 190.7 640.67 1143.01 7251.83
Chart 3.2.1
Reported Net Profit
8000
7000 7251.83
6000
5000
4000
3000
2000
1000 1143.01
640.67
0 100 190.7
(E) Earning Per Share (Rs)
Earning Per
Share (Rs) 100 190.69 59.5 2.61 14.92
Chart 3.2.1

BATCH 2008-10
Earning Per Share (Rs)
250
200
190.69
150
100 100
59.5
50
14.92
0 2.61
TREND ANALYSIS OF BALANCESHEET

BATCH 2008-10
Mar '04 Mar '05 Mar '06 Mar '07 Mar '08
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 0
Total Assets 100% 99.029% 356.26% 722.69% 1913.88%
Contingent Liabilities 100% 0 0 0 0
Book Value (Rs) 100% 83.95% 13.09% 0.32% 5.07%
(A)Equity Share Capital
PARTICULER Mar '04 Mar '05 Mar '06 Mar '07 Mar '08

BATCH 2008-10
Equity Share
Capital 100% 100.28% 1079.14% 8739.42% 9741.71%
Chart 3.2.1
Equity Share Capital
12000%
10000% 9741.71%
8739.42%
8000%
6000%
4000%
2000%
1079.14%
0% 100% 100.28%
Equity Share Capital
(B)Net worth
Net worth 100% 82.40% 138.42% 140.11% 2418.79%
Chart 3.2.1

BATCH 2008-10
Netw orth
3000%
2500% 2418.79%
2000%
1500%
1000%
500%
100% 82.40% 138.42% 140.11%

0%
Netw orth
(C)Unsecured Loans
Unsecured
Loans 100% 92.18% 93.43% 16452.50% 107515.31%
Chart 3.2.1
Unsecured Loans
120000%
107515.31%
100000%
80000%
60000%
40000%
20000% 16452.50%
0% 100% 92.18% 93.43%

Unsecured Loans

BATCH 2008-10
(D)Total Debt
Total Debt 100% 112.83% 537.14% 1206.43% 1494.63%
Chart 3.2.1
Total Debt
1600%
1494.63%
1400%
1200% 1206.43%
1000%
800%
600%
537.14%
400%
200%
100% 112.83%
0%
Total Debt
 APPLICATION OF FUND :-
(A) NET FIXED ASSETS :-

BATCH 2008-10
NET FIXED
ASSETS 100% 126.55% 140.01% 577.45% 2591.17%
Chart 3.2.1
NET FIXED ASSETS
3000%
2500% 2591.17%
2000%
1500%
1000%
500% 577.45%
100% 126.55% 140.01%
0%
NET FIXED ASSETS
(B)Investments :-
Investments 100% 98.03% 788.08% 433.82% 1037.69%
Chart 3.2.1

BATCH 2008-10
Investments
1200%
1037.69%
1000%
800% 788.08%
600%
400% 433.82%
200%
100% 98.03%
0%
Investments
(c)Sundry Debtors:-
Sundry
Debtors 100% 3.77% 25.16% 164.72% 1386.99%
Chart 3.2.1
Sundry Debtors
1600%
1400% 1386.99%
1200%
1000%
800%
600%
400%
200% 164.72%
100%
0% 3.77% 25.16%
Sundry Debtors

BATCH 2008-10
(D)Net Current Assets :-
Net Current
Assets 100% 46.12% 218.26% 716.00% 1842.05%
Chart 3.2.1
Net Current Assets
2000%
1800% 1842.05%
1600%
1400%
1200%
1000%
800%
716.00%
600%
400%
200% 218.26%
100% 46.12%
0%
Net Current Assets

BATCH 2008-10
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 amount

Absolute (%) = ((Current year – Previous Year) \ Previous
Year) x 100
COMPARATIVE PROFIT & LOSS ACCOUNT OF

DLF LTD FOR THE YEAR ENDED
31st March 2004-05
D L F Ltd. Mar 2004 Mar 2005 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

BATCH 2008-10
Chart 3.2.1
1200
Increase/(Decrease)
1000
Percentage
800 Increase/(Decrease)
Amount
600
Mar 2005 12 mths
400
Mar 2004 12 mths
200
0
s
e
TA
BT
AT
-
se
om
IT
BD
en
P
BD
nc
xp
P
li
P
le
ta
To
ta
To
In 2005, the income decreased by -3.23% over 2004 &

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.

31st March 2005-06

-
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%

BATCH 2008-10
Chart 3.2.1
3000
Increase/(Decrease)
2500
Percentage
Amount
1500
Mar 2006 12 mths
1000
Mar 2005 12 mths
500
0
s
e
l in -
TA
T
se
m
PB
PA
IT
co
D
en
PB
PB
xp
ta
le
To
ta
To
In 2006, the income increased by 138.88% over 2005 &

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.

BATCH 2008-10
31st March 2006-07

-
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
3500
Percentage
2500
Increase/(Decrease)
2000 Amount
1500 Mar 2007 12 mths
1000
Mar 2006 12 mths
500
0
s
e
l in -
TA
T
se
m
PB
PA
IT
co
D
en
PB
PB
xp
ta
le
To
ta
To

31st March 2007-08

BATCH 2008-10

-
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
14000
Percentage
10000
Increase/(Decrease)
8000 Amount
6000 Mar 2008 12 mths
4000
Mar 2007 12 mths
2000
0
s
e
l in -
TA
T
se
m
PB
PA
IT
co
D
en
D
PB
PB
xp
ta
le
To
ta
To

DLF LTD FOR LAST FIVE YEARS
D L F Ltd. Mar2004 Mar2005 Mar 2006 Mar 2007 Mar 2008

Rs. Crore 12 mths 12 mths 12 mths 12 mths 12 mths
Total income 495.83 479.78 1146.14 1430.72 6062.03
Total 453.42 412.09 915.04 1015.09 3481.38
BATCH 2008-10
expenses
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
PAT 35.48 67.69 228.52 406.91 2574.59
STATUS OF INCOME, EXPENDETURE AND PROFIT

IN FIVE YEARS
Chart 3.2.1
Profit analysis
7000
6000 Mar 2004
Rs (in crore)
5000
Mar 2005
4000
Mar 2006
3000
2000 Mar 2007
1000 Mar 2008
0
s
e
TA
T
se
m
PB
PA
IT
co
D
en
PB
PB
l in
xp
ta
le
To
ta
To

BATCH 2008-10
COMPARATIVE CHANGE IN PROFIT ( IN

PERCENTAGE )
Particular 2004-05 2005-06 2006-07 2007-08

Total 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
600
500
400
2004-05
300 2005-06
200 2006-07
2007-08
100
0
s
e
TA
BT
-100
se
om
PA
IT
P
BD
en
BD
nc
xp
P
li
P
le
ta
To
ta
To
IN THE GIVEN FOUR YEAR’S INFORMATION E CAN

CONCLUDE :-
BATCH 2008-10
 IN 2004-05 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
PROFIT
SRUCTURE WITH VERY HIGH RATE
COMPARATIVE BALANCESHEET OF DLF LTD AS

ON MARCH 31 2005-06
BALANCESHEET Mar ' 06 Mar ' 05 INCREASE/DECREACE
SOURCES OF FUNDS
Amount Percentage
Owner's Fund
Equity Share Capital 37.77 3.51 34.26 976.0683761
Share Application Money 0 0 0 0
Preference Share Capital 0 0 0 0
Reserves & Surplus 607.16 380.42 59.60254456
Loan Funds 0 0
Secured Loans 3,010.93 630.15 2380.78 377.8116322
Unsecured Loans 2.99 2.95 0.04 1.355932203
Total 3,658.85 1,017.03 2641.82 259.7583159
0 0
USES OF FUNDS 0 0
Fixed Assets 0 0
Gross Block 108.91 98.8 10.11 10.23279352
Less : Revaluation 0 0
Reserve 0 0
Less : Accumulated 29.24 26.79
Depreciation 2.45 9.145203434

BATCH 2008-10
Net Block 79.67 72 7.67 10.65277778

Capital Work-in-progress 456.73 406.63 50.1 12.32078302
0 0
Investments 1,397.28 173.82 1223.46 703.8660683
0 0
Net Current Assets 0 0
Current Assets, Loans & 3,092.12 1,710.39
Advances 1381.73 80.78449944
Less : Current Liabilities & 1,366.95 1,345.82
Provisions 21.13 1.570046514
Total Net Current Assets 1,725.17 364.57 1360.6 373.2067916
Miscellaneous expenses 0 0
not written 0 0
Total 3,658.85 1,017.02 2641.83 259.7618533
Note : 0 0
Book Value of Unquoted 1,397.28 173.82
Investments 1223.46 703.8660683
Market Value of Quoted 0 0
Investments 0 #DIV/0!
Contingent liabilities 1,643.36 502.91 1140.45 226.7701975
Number of Equity shares 377.68 35.08
outstanding (in Lacs) 342.6 976.6248575
COMPARATIVE BALANCESHEET OF DLF LTD AS

ON
MARCH 31 2004-05
BALANCESHEET Mar ' 05 Mar ' 04 INCREASE/DECREACE

SOURCES OF FUNDS
Amount Percentage
Owner's Fund
Share Application Money 0 0 0 0
Preference Share Capital 0 0 0 0
Reserves & Surplus 380.42 453.8 -16.170119
Loan Funds 0 0
Secured Loans 630.15 557.9 72.25 12.95034953
Unsecured Loans 2.95 3.2 -0.25 -7.8125
Total 1,017.03 1,018.40 -1.37 -0.134524745
0 0
USES OF FUNDS 0 0
Fixed Assets 0 0
Gross Block 98.8 83.6 15.2 18.18181818
Less : Revaluation 0 8.6
Reserve -8.6 0
Depreciation 0.09 0.337078652
BATCH 2008-10
Net Block 72 48.3 23.7 49.06832298

Capital Work-in-progress 406.63 2.4 404.23 16842.91667
0 0
Investments 173.82 177.3 -3.48 -1.962774958
0 0
Net Current Assets 0 0
Current Assets, Loans & 1,710.39 1,392.70
Advances 317.69 22.81108638
Less : Current Liabilities & 1,345.82 602.3
Provisions 743.52 123.4467873
Total Net Current Assets 364.57 790.4 -425.83 -53.87525304
Miscellaneous expenses 0 0
not written 0 0
Total 1,017.02 1,018.40 -1.38 -0.135506677
Note : 0 0
Book Value of Unquoted 173.82 177.3
Investments -3.48 -1.962774958
Market Value of Quoted 0 0
Investments 0 0
Contingent liabilities 502.91 0 502.91 0
Number of Equity shares 35.08 35.08
outstanding (in Lacs) 0 0
SOURCES OF FUNDS Mar ' 08 Mar ' 07

Amount Percentage
Owner's Fund
Equity Share Capital 340.96 305.88
35.08 11.46855
Share Application 0 0
Money 0 0
Preference Share 0 0
Capital 0 0
Reserves & Surplus 10,928.19 346.92
3050.061
Loan Funds 0 0
Secured Loans 4,945.91 6,242.81 -1296.9 -20.7743
Unsecured Loans 3,440.49 526.48 2914.01 553.4892
Total 19,655.55 7,422.09 12233.46 164.825
0 0
USES OF FUNDS 0 0
Fixed Assets 0 0
Gross Block 1,533.72 365.58 1168.14 319.5306
Less : Revaluation 0 0
Reserve
0 0
Depreciation
22.33 60.33504
Net Block 1,474.37 328.57 1145.8 348.7233
Capital Work-in- 1,781.79 665.03
progress 1116.76 167.9263
BATCH 2008-10
0 0
Investments 1,839.83 769.17 1070.66 139.1968
0 0
Net Current Assets
0 0
Current Assets, Loans 18,345.94 9,442.25
& Advances
8903.69 94.29627
Less : Current 3,786.38 3,782.93
Liabilities & Provisions
3.45 0.091199
Total Net Current 14,559.56 5,659.32
Assets 8900.24 157.267
Miscellaneous 0 0
expenses not written
0 0
Total 19,655.55 7,422.09 12233.46 164.825
COMPARISON OF LAST FIVE YEARS
BALANCESHEET 2007&2008 2006&2007 2005&2006 2004&2005

SOURCES OF FUNDS
Owner's Fund
Share Application
Money 0 0 0 0
Preference Share
Capital 0 0 0 0
Reserves & Surplus 3050.060533 -42.86184861 59.60254456 -16.170119
Loan Funds 0 0 0 0
Secured Loans -20.77429875 107.3382643 377.8116322 12.95034953
Unsecured Loans 553.4892114 17508.02676 1.355932203 -7.8125
Total 164.8250021 102.8530823 259.7583159 -0.134524745
0 0 0 0
USES OF FUNDS 0 0 0 0
Fixed Assets 0 0 0 0
Gross Block 319.5306089 235.6716555 10.23279352 18.18181818
Less : Revaluation
Reserve 0 0 0 0
Less : Accumulated
Depreciation 60.33504458 26.57318741 9.145203434 0.337078652
Net Block 348.7232553 312.4137065 10.65277778 49.06832298
Capital Work-in-
progress 167.926259 45.60681365 12.32078302 16842.91667
0 0 0 0
Investments 139.1967965 -44.95233597 703.8660683 -1.962774958
0 0 0 0
Net Current Assets 0 0 0 0
Current Assets, Loans
& Advances 94.29627472 205.3649276 80.78449944 22.81108638

BATCH 2008-10
Less : Current
Liabilities & Provisions 0.09119915 176.7423827 1.570046514 123.4467873
Total Net Current
Assets 157.2669508 228.0441927 373.2067916 -53.87525304
Miscellaneous
expenses not written 0 0 0 0
Total 164.8250021 102.8530823 259.7618533 -0.135506677
Note : 0 0 0 0
Book Value of
Unquoted Investments 138.335661 -45.68160999 703.8660683 -1.962774958
Market Value of
Quoted Investments 203.4347399
Contingent liabilities -20.18665501 132.3781764 226.7701975
Number of Equity
shares outstanding (in
Lacs) 11.4691769 3949.515463 976.6248575 0
CHAPTER 6
ANALYSIS
OF
CASH FLOW

BATCH 2008-10
 ANALYSIS OF CASH FLOW OF LAST FIVE

YEARS:-
D L F Ltd. Mar-04 Mar-05 Mar-06 Mar-07 Mar-08
-
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

BATCH 2008-10
Cash (outflow) due to dividend tax paid 0 0 0 -0.22 -115.89
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:-

BATCH 2008-10
(A)Net cash flow from operating activities (indirect method)-
D L F Ltd. 4-Mar 5-Mar 6-Mar 7-Mar 8-Mar

Net 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

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

Net 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 :-

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

BATCH 2008-10
CASH FLOW ANALYSIS
10000
8000
6000
4000
2000
550.63
0 -183.32 -64.37
4-Mar 5-Mar 6-Mar 7-Mar 8-Mar
-1621.71
-2000
-2679.28
-4000
-6000
Net cash flow from operating activities (indirect method)
Net cash inflow /(outflow ) from investment activities
-8000
Net cash inflow / (outflow ) from financing activities
Net cash inflow /(outflow ) due to net increase/(decrease) in cash & cash equivalents
CHAPTER

BATCH 2008-10
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 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

BATCH 2008-10
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:
• Gross Profit Margin Ratios.

• Net Profit Margin Ratios.
• Operating Profit Ratios.
BATCH 2008-10
• 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 2003- 2004- 2005- 2006- 2007-

2004 2005 2006 2007 2008
Net Sales**. 495.8 412.23 953.46 1,101.66 5,496.96
Gross Profit. 60.3 67.12 306.6 658.44 3,072.05
Gross Profit Ratios. 12.16 16.28 32.15 59.76 55.88
GROSS PROFIT
70
59.76
60 55.88
50
40
32.15
30
20 16.28
12.16
10
0
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Gross Profit Ratios.
 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

BATCH 2008-10
Although the gross profit has been increased over the years it
has been found that gross profit ratio has been increased
continuously.
In the year2003-04 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 2003- 2004- 2005- 2006- 2007-
2004 2005 2006 2007 2008
Net Profit. 35.50 67.70 227.44 405.77 2574.40
Sales. 495.8 412.23 953.46 1,101.66 5,496.96
Net Profit Ratio. 7.16% 16.42% 23.85% 36.83% 46.83%

BATCH 2008-10
GROSS PROFIT
50.00% 46.83%
45.00%
40.00% 36.83%
35.00%
30.00%
23.85%
25.00%
20.00% 16.42%
15.00%
10.00% 7.16%
5.00%
0.00%
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Net Profit Ratio.
 In above showing continues increase in gross profit.

So we can say that company is smoothly & gradually growing &
strong back up..
 in 2003-04 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:

BATCH 2008-10
Operating Profit ratio = Operating Profit / Sales X 100.
Operating Profit Ratio

Particular 2003-2004 2004-2005 2005-2006 2006- 2007-2008
22007
Operating Profit. 60.30 67.12 306.60 658.44 3072.05
Sales. 495.8 412.23 953.46 1,101.66 5,496.96
Operating Profit Ratio. 12.16 16.28 32.16 59.77 55.89
70.00
OPERATING PROFIT RATIO
60.00
59.77
50.00 55.89
40.00
30.00 32.16
20.00
16.28
10.00 12.16
0.00
2003- 2004- 2005- 2007-
2006-22007
2004 2005 2006 2008
TAG
CEN
PER
%)
YEARS
E(
Operating Profit Ratio.
In operating profit ratio is very higher. In 2003-04 the

operating profit is 12.16 is continuously increase in 2004-05
is16.28,2005-06 is 32.16 & in 2006-07 it is 59.77.
But in 2007-08 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.

BATCH 2008-10
• 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
Particular 2003- 2004- 2005- 2006- 2007-

2004 2005 2006 22007 2008
Profit After Tax. 1202.12 1935.80 2714.10 3273.20 4412.86
P.Y. Total Assets 21140.87 18455.07 17309.91 22191.19 22840.70
C.Y. Total Assets 18455.07 17309.91 22191.19 22840.70 27318.95
Average Total Assets. 19797.97 17882.49 19750.55 22515.95 25079.83
Return on Assets Ratio. 6.07 10.83 13.74 14.54 17.60
GROSS PROFIT
20
17.6
18
16 14.54
13.74
14
12 10.83
10
8 6.07
6
4
2
0
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Return on Assets Ratio.
 The ROA goes increasing every year i.e. 6.07% to

17.60%.

BATCH 2008-10
 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 2004 – 2005 is more than the year 2005
– 2006 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 2003-2004 2004-2005 2005-2006 2006- 2007-
22007 2008
PAT or Equity Earning. 1202.12 1935.80 2714.10 3273.20 4412.86
P Y Shareholder’s Equity. 2.89 3.50 3.51 37.77 305.88
CY Shareholder’s Equity. 3.50 3.51 37.77 305.88 340.96
Average Shareholder’s Equity. 3.20 3.51 20.64 171.83 323.42
Return on Equity Ratio. 37625.04% 55229.67% 13149.71% 1904.96% 1364.44%

BATCH 2008-10
RETURN ON EQUITY RETIO
60000.00% 55229.67%
50000.00%
37625.04%
40000.00%
30000.00%
20000.00%
13149.71%
10000.00%
1904.96% 1364.44%
0.00%
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
Return on Equity Ratio.
 Return on Equity is continuously decreasing i.e. from

37625.04% in the year 2003-04 to 1364.44% in 2007-08
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 2003- 2004-2005 2005-2006 2006-2007 2007-2008
2004
Profit Before Tax. 48.1 96.86 347.87 620.23 3,117.83
P Y Total Assets 21140.87 18455.07 17309.91 22191.19 22840.70
CY Total Assets 18455.07 17309.91 22191.19 22840.70 27318.95
Average 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%

BATCH 2008-10
EARNING POWER RATIO
14.00%
PERCENTAGE (%)
12.43%
12.00%
10.00%
8.00%
6.00%
4.00% 1.76% 2.75%
2.00% 0.24% 0.54%
0.00%
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
YEARS
Earning Power Ratio.
 The Earning Power of the company has been increased to

12.43% in year 2007–2008 from 0.24% in year 2003 –
2004.
 This is because the increase in earning before interest &
tax (EBIT) is more than increase in average total assets.
 In 2003 – 2004 the EBIT is increased by 2.75% while PAT
is increased by 12.43% because interest & tax is less.
 In year 2004 – 2005 EBIT increased by 20.97% while PAT
is increased by 10.20% because interest & tax is only by
13%.
 In year 2005 – 2006 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.
BATCH 2008-10
• Bank Finance Gap Ratio.
• 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 ratio
Particular 2002 – 200 2003 - 2004 - 2005 - 2006 -
2004 2005 2006 2007
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
CURRENT RATIO
IN TIMES
3.50
3.00
2.50
2.00 3.01
1.50
1.00
0.50 0.76 1.66
1.21 1.01
0.00
2002 - 2003 2003 - 2004 2004 - 2005 2005 - 2006 2006 - 2007
YEARS
Current Ratio.

BATCH 2008-10
 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 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 2004 – 2005 & decreased up to
1.54 in 2006 – 2007 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 Assets
Particular 2003- 2004- 2005- 2006- 2007-
2004 2005 2006 22007 2008
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 5370.76
Quick Assets Ratio. 0.18 0.22 0.66 0.52 1.43

BATCH 2008-10
QUICK ASSET RATIO
1.60 1.43
1.40
1.20
IN TIMES
1.00
0.80 0.66
0.60 0.52
0.40 0.22
0.18
0.20
0.00
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
YEARS
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 2003–2004 the ratio was 0.18, which was highest &
also satisfactory level. But then in year 2007–2008, 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,

BATCH 2008-10
compensatory minimum bank balance & minimum cash balance

are the example of permanent working capital.
Net Working Capital = Total Current Assets – Total Current

Liabilities
Net Working Capital

Particular 2003- 2004- 2005- 2006- 2007-
2004 2005 2006 22007 2008
Current Assets. 1402.6 1014 1366.91 6224.94 11298.89
Net Working Capital 247.22 -323.54 8.42 2465.9 7545.69
NET WORKING CAPITAL
8000 7545.69
RS. IN MILLION
6000
4000
2465.9
2000
247.22 8.42
0
2003-2004 2004-2005
-323.54 2005-2006 2006-22007 2007-2008
-2000
YEARS
Net Working Capital
 Net working capital has been found very fluctuating every

year.
 Net Working Capital in this year (2007 – 2008) is very
useful for other purpose because it is highest i.e.7545.69.
• Cash Generated Per Rupee of Sales:

BATCH 2008-10
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
Particular 2003- 2004-2005 2005-2006 2006- 2007-2008
2004 22007
PAT 1202.12 1935.80 2714.10 3273.20 4412.86
Depreciation 1029.69 964.54 1092.14 1260.06 1505.74
Non Cash Items
FINANCIAL EXPENSES 585.10 207.91 27.98 164.53 53.32
EXTRA ORDINARY EXPENSE 86.69 95.19 95.83 (217.15) 130.76
Non Cash Items 671.79 303.10 123.81 (52.62) 184.08
2903.60 3203.44 3930.05 4480.64 6102.68
Sales. 26803.75 33938.84 41818.97 52476.57 71681.76
Cash Generated Per Rupee Of Sales 10.83% 9.44% 9.40% 8.54% 8.51%
Ratio
CASH GENERATED PER RUPEES OF SALES RATIO

10.83%
PERCENTAGE (%)
12.00%
9.44% 9.40%
10.00%
8.54% 8.51%
8.00%
6.00%
4.00%
2.00%
0.00%
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
YEARS
Cash Generated Per Rupee Of Sales Ratio
 The Cash Generated per Rupee of Sales Ratio includes

PAT, depreciation & non-cash expenses (interest).
 In the year 2003-2004 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 2006-2007.

BATCH 2008-10
• Bank Finance Gap Ratio.
Bank Finance Gap Ratio = Total Current Assets – MPBF under

Tandon Committee
MPBF indicates maximum permissible bank finance under
tandon committee recommendations of 1975. The maximum
permissible 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 1
Particular 2003- 2004- 2005- 2006- 2007-
2004 2005 2006 22007 2008
Current Assets. 1402.60 1014.00 1366.91 6224.94 11298.89
CA- CL 247.22 -323.54 8.42 2465.90 7545.69
75%(CA-CL) 185.42 -242.66 6.32 1849.43 5659.27
Method 2:
75% (Current Assets) – Current Liabilities
Method 2
Particular 2003- 2004- 2005- 2006- 2007-
2004 2005 2006 22007 2008
Current Assets. 1402.60 1014.00 1366.91 6224.94 11298.89
75% Current Assets 1051.95 760.50 1025.18 4668.71 8474.17
75%(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 2003- 2004- 2005-2006 2006- 2007-
2004 2005 22007 2008
Current Assets. 1402.60 1014.00 1366.91 6224.94 11298.89
Core Current Assets( Quick 9300.14 9567.26 15891.82 13298.52 16273.93
BATCH 2008-10
Assets)
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)
75%(CA)-CL (7078.54) (7752.49) (12252.17) (9064.23) (7484.48)
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 Turnover
Particular 2003- 2004-2005 2005-2006 2006- 2007-2008
2004 22007
Sales. 495.8 412.23 953.46 1,101.66 5,496.96
Total Assets. 18455.07 17309.91 22191.19 22840.70 27318.95
Total Assets Turnover Ratio. 0.03 0.02 0.04 0.05 0.20

BATCH 2008-10
TOTAL ASSETS TURNOVER RATIO
0.25
0.20
0.20
IN TIMES
0.15
0.10
0.04 0.05
0.05 0.03 0.02
0.00
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
YEARS
Total Assets Turnover Ratio.
 Total assets turnover ratio has increased in 20037–2008

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 2007-08.
 But after that it has been increased to 0.20 in 2007-
2008.
 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 Ratio
Particular 2003- 2004-2005 2005-2006 2006- 2007-2008
2004 22007
Sales. 495.8 412.23 953.46 1,101.66 5,496.96
Net fixed assets 59.34 478.64 536.4 993.61 3256.17
Fixed assets turnover Ratio 8.36 0.86 1.78 1.11 1.69
BATCH 2008-10
• A fixed assets turnover ratio has been increased. It

indicates that fixed assets utilized more efficient in
business.
• In year 2003-04 the net fixed assets have been decreased
by 0.86%. So the fixed assets turnover ratio has highest
increased in the year 2007-08 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

Ratio
Particular 2003- 2004- 2005- 2006- 2007-
2004 2005 2006 22007 2008
Sales. 495.8 412.23 953.46 1,101.66 5,496.96
Current Assets. 1402.60 1014.00 1366.91 6224.94 11298.89
Net Working Capital 317.82 383.93 644.93 652.8 11269.15
Fixed Working Capital Turnover 1.56 1.07 1.48 1.69 0.49
Ratio

BATCH 2008-10
Fixed Working Capital Turnover Ratio
1.8 1.69
1.56
1.6 1.48
1.4
1.2 1.07
1
0.8
0.6 0.49
0.4
0.2
0
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
Fixed Working Capital Turnover Ratio
 In the fixed working capital turnover ratio too much

of fluctuation has been found but then it has
increased.
 In 2003-04 the ratio was 1.56 times but in year
2004-05 it was decreased to 1.07 times but in the
year 2005-06 it has been increases to 1.48 times but
than it has decreased to 0.49 in year 2007-08. 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 Ratio
Particular 2003- 2004- 2005- 2006- 2007-
2004 2005 2006 2007 2008
Days 360 360 360 360 360
Debtors turnover 5.12 2.71 2.35 1.12 2.32
Avg. Age of Debtor’s Ratio 70.31 132.84 153.19 321.43 155.17

BATCH 2008-10
AVERAGE AGE OF DEBTOR'S

350 321.43
300
250
IN DAYS
200 155.17
153.19
150 132.84
100 70.31
50
0
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
YEARS
 This graph shows the very good situation for company.

 In Average Age of Inventories lower the ratio better the
situation.
 In year 2003–2004 the average age for inventory was
70.31
days & it has been increase to 155.17 days in year 2007–
2008.
 In year 2006–2007 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 2003-2004 2004-2005 2005-2006 2006-22007 2007-
2008
Debtors 0 0 0 0 0
Bills Receivable 137.85 187.83 648.02 1376.41 3382.1
6
BATCH 2008-10
Total 137.85 187.83 648.02 1376.41 3382.1

6
Credit 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
Debtor’s Ratio
500 444.35
450
400
350
300 240.39
250 223.23
200 155.09
150 106.39
100
50
0
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
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 2003-2004 2004-2005 2005-2006 2006-22007 2007-2008

BATCH 2008-10
Credit Sales/ Net Sales 472.92 442.04 983.94 1130.62 5530.00

Previous Years Debtors 46.73 137.85 187.83 648.02 1376.41
Current Years Debtors 137.85 187.83 648.02 1376.41 3382.16
Average Debtors 92.29 162.84 417.93 1012.22 2379.29
Debtor’s Turnover 5.12 2.71 2.35 1.12 2.32
DEBTOR'S TURNOVER
6
4 5.12
IN DAYS
2
2.71
2.35
1
0
2003-2004 2004-2005 2005-2006 2006-22007
1.12 2007-2008
2.32
YEARS
Debtor’s Turnover
• 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

Particular 2003-2004 2004-2005 2005-2006 2006-2200
Days 360 360 360 360
Debtors turnover 5.12 2.71 2.35 1.12
Avg. Age of Debtor’s Ratio 70.31 132.84 153.19 321.43

BATCH 2008-10
AVERAGE AGE OF DEBTOR'S

350 321.43
300
250
IN DAYS
200 155.17
153.19
150 132.84
100 70.31
50
0
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
YEARS
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

leverage
1. 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 Employed

BATCH 2008-10
Where,
Net Worth = Equity Capital + Reserves – Misc.
Expenses
Total Capital Employed = Net Worth + Long Term
Debt.
Equity Ratio
Particular 2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
Equity Capital (a) 3.51 3.51 37.77 305.88 340.96
Reserves (b) 314.31 380.42 607.16 346.92 10928.19
Misc. Expenses (c) 0 0 0 0 0
Net Worth (a+b-c) A 317.82 383.93 644.93 652.8 11269.15
Secured loans(d) 557.9 630.15 3,010.93 6,242.81 4,945.91
Unsecured loans(e) 3.2 2.95 2.99 526.48 3,440.49
Long Term Debt(d+e) B 561.1 633.1 3013.92 6769.29 8386.4
Total Capital Employed (A+B) = C 878.92 1017.03 3658.85 7422.09 19655.55
Equity Ratio 0.36 0.38 0.18 0.09 0.57
EQUITY RATIO
0.70
0.60
0.50
IN TIMES
0.40
0.30
0.57
0.20 0.36
0.38
0.10
0.00 0.18
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
YEARS 0.09
Equity Ratio
•Debt equity ratio:
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 ratio
Particular 2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
Debt 7175.22 4989.08 8804.06 6919.28 6403.98
Net worth 314.31 380.42 607.16 346.92 10928.19

BATCH 2008-10
Debt 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

employed
Debt ratio
Particular 2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
Long term debt 7175.22 4989.08 8804.06 6919.28 6403.98
Total 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.
INTEREST COVERAGE RATIO

140
127.88
120 114.37
100
IN TIMES
80
60
28.49
40
20 14.78
3.91
0
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
YEARS
Interest Coverage Ratio
Valuation Ratios:
BATCH 2008-10
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
• 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

BATCH 2008-10
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

P/E RATIO
180
164.36
160
140
IN TIMES
120
103.96
100
80
60
40
11.01 16.04 12.55
20
0
2003-2004 2004-2005 2005-2006 2006-22007 2007-2008
YEARS
P/E Ratio
PROFITABILITY RATIO
(Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
PBDITA/Total income 16.1592749 12.0484844 26.9581892 42.5776956 78.9141132 64.7230383
PBDTA/Total income 14.4364492 10.2514975 20.7157447 30.7126529 44.0358701 51.8478134
PBIT/Total income 15.2840241 11.491842 26.4329484 42.3142025 78.315813 64.3119549
PBT/Total income 13.5611984 9.69485509 20.190504 30.4491598 43.4375699 51.4367299
PAT/Total income 9.32332388 7.15567836 14.1085498 19.9382274 28.4409248 42.4707565
Cash profit/Total income 10.1259254 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&E 14.1925707 11.4241286 26.427304 42.2602147 78.3141886 64.3152562
PBT Net of P&E/Total income Net of P&E 12.4374427 9.62478291 20.175347 30.3799348 43.405202 51.4391391
PAT Net of P&E/Total income Net of P&E 8.12010996 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/Sales 15.8506777 12.5454622 29.2100262 49.4704962 99.7709221 70.9486438

PBDTA Net of PE&OI/Sales 14.0063699 10.6614227 22.4346213 35.6495315 55.6349613 56.8347197
PBIT Net of PE&OI/Sales 14.9137101 11.961854 28.6399421 49.1635669 99.0138154 70.4980108
PBT Net of PE&OI/Sales 13.0694023 10.0778144 21.8645371 35.3426022 54.8778546 56.3840868

BATCH 2008-10
PAT Net of PE&OI/Sales 8.53270128 7.41563055 15.2633246 23.0989694 35.9006563 46.5555154

Cash profit Net of PE&OI/Sales 10.6584697 8.09439229 15.8899647 23.4953351 36.7355964 47.0213382
PAT Net of PE&OI/Net sales 8.65644725 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
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 assets

Inventories 1001.26 1195.77 718.48 472.12 4281.07 5928.13
Sundry debtors (outstanding less than six
months) 2.91 104.93 0.44 23.37 171.97 706.31
Sundry debtors (outstanding over six months) 16.61 0.62 3.53 3.19 1.82 756.97
Bills receivable 0 0 0 0 0 0
Acccured 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 14.78
Sale 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 52.5212854
Sundry debtors (outstanding less than six
months) 0.26390249 7.48265362 0.04412709 1.81731936 2.83323036 6.25767469
Sundry debtors (outstanding over six months) 1.50633003 0.04421276 0.35401958 0.2480637 0.02998476 6.70650566
Bills receivable 0 0 0 0 0 0
Acccured 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 0.13094595
Sale 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 3793.28

- - - - -
Net working capital (as per cost of sales method) 1040.14022 1140.65049 1457.25029 1667.95472 10708.6321 -3534.6208

BATCH 2008-10
RETURN RATIO
-
Return ratios
On Net worth
PBIT Net of P&E/Avg. net worth 14.7988902 18.8024529 36.0812255 94.0341737 172.527413 65.401046
PAT Net of P&E/Avg. net worth 8.46700843 11.6563907 19.2290702 44.1809381 62.5553852 43.1895789
PAT/Avg. net worth 9.90390092 11.7926645 19.2917706 44.4219816 62.7110416 43.1907532
Cash profit/Avg. net worth 10.7564816 12.8296744 20.0755255 44.9643295 63.9747867 43.616858
On Capital Employed
PBIT Net of P&E/Avg. capital employed 14.1973241 10.0009723 13.9121644 22.5009477 23.135138 35.0047319
PBIT/Avg. capital employed 15.5758078 10.073456 13.9363403 22.5586258 23.1560109 35.0053604
PAT Net of P&E/Avg. capital employed 8.12282959 6.20000177 7.41432645 10.5718266 8.38839141 23.1164442
PAT/Avg. capital employed 9.50131326 6.27248539 7.43850241 10.6295046 8.40926422 23.1170727
On Total Assets
PBIT Net of P&E/Avg. total assets 2.9717693 3.29547738 5.74824851 13.0925428 13.7935921 22.5043568
PBIT/Avg. total assets 3.26031208 3.31936188 5.75823757 13.1261038 13.8060368 22.5047609
PAT Net of P&E/Avg. total assets 1.70026235 2.04299791 3.0634623 6.15138946 5.00131224 14.8614396
PAT/Avg. total assets 1.98880513 2.0668824 3.07345136 6.18495037 5.013757 14.8618437
On GFA
PBIT 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

BATCH 2008-10
RATIO ANALYSIS
PER SHARE RATIOS
Adjusted E P S (Rs.) 15.10 2.65 60.28 194.68 101.20

Adjusted Cash EPS (Rs.) 15.49 2.72 61.31 204.37 109.18
Reported EPS (Rs.) 15.10 2.65 60.22 192.98 101.20
Reported Cash EPS
(Rs.) 15.50 2.71 61.25 202.66 109.18
Dividend Per Share 4.00 2.00 4.00 4.00 0.00
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 12.16

Gross Profit Margin (%) 55.41 58.91 31.74 15.45 11.59
Net Profit Margin (%) 42.49 28.38 19.86 14.13 7.16
Adjusted 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 1.23

Total 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

BATCH 2008-10
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 2.31
Quick Ratio 3.28 1.36 1.91 0.73 1.03
Inventory 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 0.00
Earning Retention Ratio 69.01 1.72 99.23 97.68 100.00
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 0.00
Selling 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

BATCH 2008-10
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:
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.

BATCH 2008-10
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:
 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.

BATCH 2008-10
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.

BATCH 2008-10
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
2006-07, 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.
2005-06
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.
BATCH 2008-10
Cash Flow
In Cash Flow Analysis all the activities i.e. operating, investing,
financing maintain this year (2006 – 2007).
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.

BATCH 2008-10
FINANCIAL RESULTS CONSOLIDATED
(Rs. in Crores)
Consolidated Consolidated
2007-08 2006-07
Gross operating Profit 9961.49 2,905.59
Less : Finance Charges 310.00 307.59
Less: Depreciation 90.06 57.81
Profit before Tax 9561.43 2,540.19
Less: Provision for Tax 1739.09 605.18
Profit before minority interest 7822.34 1,935.01
Share 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 (2006-07), 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 (2006-07), representing an increase of
about 304%.

BATCH 2008-10
DU POND ANALYSIS
OF
2004
Return on
assets 6.07
Total Assets
X Net Profit
Turnover 2.42 %
Margin 7.16 %
Average total
Net Profit Net Sales
Net Sales / Assets /
35.50 495.8
495.8 2041.89
Average Net sales

Average Avg.
fixed Average +/ -
+ + net + Misc. -
Assets Investment Non-
current Exp. Total
38.99 172.34 Operating
assets 577.66 Cost
Surplus /
1252.90 453.42
Deficit
488.92

BATCH 2008-10
DU POND ANALYSIS
OF
2005
Return on
assets 10.83%
Total Assets
X Net Profit
Turnover 1.74 %
margin 16.42%
Average total
67.70 412.23
412.23 2362.85
Average Net sales

Average Avg.
fixed Average +/ -
+ + net + Misc. -
current Exp. Total
268.99 175.55 Operating
assets 710 Cost
Surplus /
1208.30 412.09
Deficit
479.79

BATCH 2008-10
DU POND ANALYSIS
OF
2006
Return on
assets 13.74%
Total Assets Net Profit

Turnover 1.89% X margin 23.85%
Average total
227.44 953.46
953.46 5026.7
Average Net sales

Average Avg.
fixed Average +/ -
+ + net + Misc. -
current Exp. Total
507.64 785.55 Operating
assets 2543.05 Cost
Surplus /
1190.46 915.04
Deficit
1142.48

BATCH 2008-10
DU POND ANALYSIS
OF
2007
Return on
assets14.54%

Turnover 9.83 % X margin 36.83%
Average total
405.77 1101.66
1101.66 11205.04
Average Net sales

Average Avg.
fixed Average +/ -
+ + net + Misc. -
current Exp. Total
765 1083.23 Operating
assets 5560.88 Cost
Surplus /
3795.93 1015.09
Deficit
1420.86

BATCH 2008-10
DU POND ANALYSIS
OF
2008
Return on
assets 17.60%

Turnover 2.34 % X margin 46.83%
Average total Net Profit Net Sales

Net Sales / /
Assets 23441.94 2574.40 5496.96
5496.96
Average
fixed Average Avg. Net sales
Average
Assets + + net + Misc. +/ - -
Investment
2124.89 current Exp. Non- Total
1304.50
assets 11250.63 Operating Cost
876w1.92 Surplus / 3481.38
Deficit
6055.78

BATCH 2008-10

1.1 Company Profile: Financial Anlysis of DLF LTD

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

1.1 Company Profile: Financial Anlysis of DLF LTD

Încărcat de

Drepturi de autor:

Formate disponibile

FINANCIAL ANLYSIS OF DLF LTD

DLF Limited, or DLF, is India's

The company is currently headed by Indian billionaire Kushal Pal

results ending 30th June 2007. The company reported a turnover

COMPANY’S PROFILE cont…

 DLF is India's largest real estate company

 A roster of world-reputed businesses chooses DLF to jointly

environment. DLF has also tied up with Hilton Hotels to jointly

 All the intensified growth underlines DLF's commitment to

 The Homes business unit involves a wide range of products

 DLF's office segment is one of the group's most admired

 With a booming retail environment on the horizon, this is a

 With the growth of the Indian economy and the resulting

real estate development company with the highest standards of

1.2 Chairman profile

cavalry regiment of ‘The Deccan Horse’ of the Indian Army. In

S.V. INSTITUTE OF MANAGEMENT, KADI 5

• Chairman of the Board, DLF Limited.

• President of the apex industry chamber of the country,

S.V. INSTITUTE OF MANAGEMENT, KADI 6

1.3 COMPANY HISTORY

1979 : DLF United Limited amalgamates with American

1981 : DLF Universal Electric Limited changes name to

1981 : DLF Universal Limited obtains its first licence

1985 : We initiated plotted developments, self first

1991 : Construction of our first office complex, 'DLF

1993 : Completion of our first condominium project,

1996 : Construction of 'DLF Corporate Park', our first

1999 : Development of the DLF golf course

2000 :The Scheme of Merger/Amalgamation of DLF

Delhi at New Delhi and by the Hon'ble High Court

2002 : We venture into retail development in Gurgaon,

2002 : We offer integrated family entertainment centers

2004 :Development of 'DLF Cybercity', an integrated IT

2005 : * Acquisition of 16.62 acres (approx) of mill

2006 : Construction joint venture signed between DLF

2006 : DLF Universal Limited changes name to DLF

2006 : Alliance agreement signed between DLF and Hilton

2006 :DLF enters into a joint venture with WSP Group

and design services, environmental and

2007- :The US-based Hilton Hotels Corporation has

Pursuant to the order of the Delhi High Court dated 26.10.1970,

Thereafter, DLF United Limited merged with our Company, then

Key events and milestones

2007 : DLF enters into a joint venture with Prudential

- DLF launches bn issue.

3.3 COMPANY PROFILE

BUSSINESS GROUP : DLF GROUP

Board of Directors Reference

Executive Directors Registered Office

Mr. Rajiv Singh

Ms. Pia Singh Statutory Auditors

Mr. Kameshwar Swarup

Non-Executive Directors Listed at

S.V. INSTITUTE OF MANAGEMENT, KADI 11

1.7 DLF’S PARTNER IN BUILDING INDIA

WSP operates as a specialist in the property, environmental,

Laing O'Rourke operates worldwide, in Asia, Europe, the Far

each in the special purpose vehicle.The companies signed a

The joint venture hotels will represent several brands from

The initial stage of the joint venture will involve 20 hotels in a

partnership IBM will be responsible for the helpdesk services for