A

PROJECT REPORT
ON
FINANCIAL ANALYSIS OF DLF

SUBMITTED BY:
MAYUR PATEL

F.Y.M.B.A. (SEM 1st)

DIV: B
ROLL NO. 88

SUBMITTED TO:
PROF. SANJAY PATEL

C. K. PITHAWALLA INSTITUTE OF MANAGEMENT,

SURAT
December 2012

Balance Sheet of DLF

------------------- in Rs. Cr. ------------------Mar '12

Mar '11

Mar '10

Total Share Capital

339.68

339.51

339.48

Equity Share Capital

339.68

339.51

339.48

Share Application Money

Preference Share Capital

14,156.88

13,470.98

12,490.53

Net worth

14,496.56

13,810.49

12,830.01

Secured Loans

11,844.67

14,700.70

11,590.19

Sources Of Funds

Reserves
Revaluation Reserves

Unsecured Loans

130.45

358.85

1,047.67

Total Debt

11,975.12

15,059.55

12,637.86

Total Liabilities

26,471.68

28,870.04

25,467.87

2,143.37

2,002.85

Application Of Funds
Gross Block
Less: Accum.
Depreciation

2,624.35
535.86

400.27

273.84

Net Block

2,088.49

1,743.10

1,729.01

Capital Work in
Progress

2,077.77

2,199.25

1,718.51

Investments

7,046.65

7,037.24

6,558.88

Inventories

8,111.07

8,389.41

6,533.69

Sundry Debtors

519.28

270.21

607.96

Cash and Bank

Balance

366.57

133.92

37.82

Total Current Assets

8,996.92

8,793.54

7,179.47

Loans and Advances

15,858.17

15,415.91

11,631.40

42.35

133.61

24,855.09

24,251.80

18,944.48

9,022.55

5,394.09

2,047.37

573.78

967.27

1,435.66

Fixed Deposits
Total CA, Loans &
Advances
Deferred Credit
Current Liabilities
Provisions
Total CL & Provisions

9,596.33

6,361.36

3,483.03

Net Current Assets

15,258.76

17,890.44

15,461.45

Total Assets

26,471.67

28,870.03

25,467.85

Contingent Liabilities

12,719.78

10,141.63

7,423.38

85.35

81.35

75.59

Miscellaneous
Expenses

Book Value (Rs)

DLF Profit and Loss A/c

------------------- in Rs. Cr. ------------------Mar '12

Mar '11

Mar '10

3,491.32

2,916.08

2,307.08

Net Sales

3,491.32

2,916.08

2,307.08

Other Income

1,091.34

1,235.51

908.56

4,582.66

4,151.59

3,215.64

Raw Materials

Power & Fuel Cost

Employee Cost

127.12

89.9

90.5

Other Manufacturing Expenses

932.88

848.68

889.25

149.97

240.85

321.35

47.65

41.38

Total Expenses

1,381.35

1,136.20

1,261.98

Operating Profit

2,109.97

1,779.88

1,045.10

PBDIT

3,201.31

3,015.39

1,953.66

Interest

1,553.78

1,286.70

847.24

PBDT

1,647.53

1,728.69

1,106.42

Income
Sales Turnover
Excise Duty

Stock Adjustments
Total Income
Expenditure

Selling and Admin Expenses

Miscellaneous Expenses
Preoperative Exp Capitalized

Depreciation

139.84

129.77

126.05

Other Written Off

50.4

41.47

Profit Before Tax

1,507.69

1,548.52

938.9

-7.16

30.16

2.01

1,500.53

1,578.68

940.91

Extra-ordinary items
PBT (Post Extra-ord Items)
Tax

458.77

309.05

175.71

Reported Net Profit

1,041.79

1,269.58

765.06

Total Value Addition

1,381.34

1,136.18

1,261.98

Preference Dividend

339.68

339.51

339.48

55.1

11.38

16,983.86

16,975.72

16,973.91

Earning Per Share (Rs)

6.13

7.48

4.51

Equity Dividend (%)

100

100

100

85.35

81.35

75.59

Equity Dividend
Corporate Dividend Tax
Per share data (annualized)
Shares in issue (lakh)

Book Value (Rs)

DLF Common size Statement profit and loss account as on

31 March
Particular
A
B
C
D

H
I
J

2010(Rs.)

Net Sales
Less: Cost of goods Sold
Gross profit =(A-B)
Less: Operating expenses
Administration Exp.
Miscellanea exp.
Total D

100%
979.75
42.47%
1,327.33 57.5300%

Operating profit (C-D)

Add: non operating
income
Other income
stock adjustment
Total F
Less: Non Operating Exp.
PBDIT
Less: Interest
PBDT
Less: Depreciation
Net profit before tax
Less: tax
Net profit after tax (H-I)

2,307.08

2011(Rs.)
2,916.08

938.58
1,977.50

2012(RS.)

100%
32.19%
67.8100%

3491.32
1060
2431.32

100%
30.36
69.64

0
321.35
321.35

0
9.2
9.2

282.23

10.44%
1.79%
12.23%

197.62

5.14%
1.63%
6.77%

1,045.10

45.30

1,779.88

61.04

2109.97

60.43

908.56

39.38%
0.00%
39.38%

1235.51

42.37%
0.00%
42.37%

1091.34
0
1091.34

31.26
0
31.26

0
3015.39

847.24

0.00%
84.68%
36.72%

1286.7

0.00%
103.41%
44.12%

1106.42

47.96%

1728.69

59.29%

126.05

5.46%

129.77

4.45%

980.37

42.50%

1598.92

54.84%

175.71

7.62%
34.88%

309.05

1289.87

10.60%
44.24%

0
3201.31
1553.78
1647.53
139.84
1507.69
458.77
1048.92

91.68
44.5
47.19
4
43.18
13.15
30.35

240.85
41.38

0
908.56
0
1953.66

804.66

149.97
47.65

0
1235.51

Profit&Loss A/c Interpretation.

The cost of good sold ratio has been decrease from 42.47% to 32.19% in 2010 as compare to 2011.and 32.19%to
30.36%dicreased compare with 2011 to 2012.consequentiontial effect on gross profit has been Increase to 57.53%
to 67.81% in 2010 and 69.81% 2012. The ratio of administrative exp. Has Decreased as justified with decreased in
sales. However the selling and distribution and financial charges ratio decreased as compare to previous year ratio,
this indicates efficiency of the companies selling & distribution & financial charges to kept in spite of increase in
turnover of the company While in 2012 there is less cost of depreciation cost n there is also less profit for the
company.

DLF Common size Statement Of Balance sheet as on 31 March

March '10

% March'11

% March '12

Sources Of Funds
339.48

1.33%

339.51

1.18%

12490.53

49.04%

13470.98

46.66%

0.00%

Net worth

12830.01

50.38%

13810.49

47.84%

Secured Loans

11590.19

45.51%

14700.7

50.91%

Equity Share Capital

Reserves
Revaluation Reserves

Unsecured Loans

1047.67

4.11%

358.85

1.24%

Total Debt

12637.86

49.62%

15059.55

52.16%

Total Liabilities

25467.87

100.00%

28870.34

100.00%

2,002.85

7.86

2,143.37

7.42

339.68
0.15%
14156.88
5.48%
0
0.00%
14496.56 88.00%
11844.67 44.74%
130.45
0.50%
11975.12 45.23%
26471.68 100.00%

Application Of Funds
Gross Block
Less: Accum. Depreciation

273.84

1.08

400.27

1.39

Net Block

1,729.01

6.78

1,743.10

6.03

Capital Work in Progress

1,718.51

6.75

2,199.25

7.62

Investments

6,558.88

25.75

7,037.24

24.38

Inventories

6,533.69

25.65

8,389.41

29.06

607.96

2.39

270.21

0.94

37.82

0.15

133.92

0.46

Total Current Assets

7,179.47

28.19

8,793.54

30.46

Loans and Advances

11,631.40

45.67

15,415.91

53.40

133.61

0.52

42.35

0.15

18,944.48

74.38

24,251.80

84.00

Current Liabilities

2,047.37

8.04

5,394.09

18.98

Provisions

1,435.66

5.64

967.27

3.35

Total CL & Provisions

3,483.03

13.68

6,361.36

22.03

Net Current Assets

15,461.45

60.71

17,890.44

61.97

0.00

25,467.85

100.00

28,870.03

100.00

Sundry Debtors
Cash and Bank Balance

Fixed Deposits
Total CA, Loans & Advances

Miscellaneous Expenses
Total Assets

2624.35
9.91%
535.86
2.02%
2088.49
7.89%
2077.77
7.85%
7046.65 26.61%
8111.07 30.64%
519.28
1.97%
366.57
1.39%
8996.92 33.99%
15858.17 59.90%
0
0.00%
24855.09 93.89%
9022.55 34.09%
573.78
2.17%
9596.33 36.25%
15258.76 57.64%
0
0.00%
26471.67 100.00%

Balance Sheet Interpretation

There is improvement in Owner fund in equity and Profit and loss a/c the ratio of equity has been decreased from
1.33%to 1.18% as 2010 compare to 2011 and only0.15% in 2012. There is also decline in reserves has been from
49.04%to 46.66% decreased by 5.48%for the year ending 2012. There capital work In progress is also increase As
compare to 2010,As well 2011 in 2012. And there is also there is more inventories are also there in 2012 and it will
also increased. Investment and Net current asset are also increased by 2.23%in 2012 from 2011.While on the
other way there is Decline in net current asset by 4.33.That is the interpretation of balance sheet of DLF.

DLF Comparative Statement of Profit and Loss account for year ended on
Year to year Comparison

2010-2011

A
B
C
D

H
I
J

Particular
Net Sales
Less: Cost of goods Sold
Gross profit =(A-B)
Less: Operating expenses
Administration Exp.
Miscelliance exp.
Total D

2010(Rs.)

2011(Rs.)

2012

(A)

(B)

(C)
3491.32
1060
2431.32

2,307.08

2,916.08

979.75
1,327.33

938.58
1,977.50

240.85

149.97

41.38

47.65

282.23

197.62

0
321.35
321.35

Operating profit (C-D)

1,045.10
Add: non operating income
Other income
908.56
stock adjustment
0
Total F
908.56
Less: Non Operating
Exp.
0
PBDIT
1953.66
Less: Interest
847.24
PBDT
1106.42
Less: Depreciation
126.05
Net profit before tax
980.37
Less: tax
175.71
Net profit after tax (H-I)
804.66

1,779.88

2109.97

1235.51
0
1235.51
0
3015.39
1286.7
1728.69
129.77
1598.92
309.05

1289.87

Difference
D=B-A
609.00
-41.17
650.17
0.00
-90.88
6.27
-84.61

2011-2012
Difference %

%
D/A*100
(%)
F=C-B
F/B*100
26.40
575.24
19.72
-4.20
121.42
12.94
48.98
453.82
22.95
0.00
0.00
0
-37.73
-149.97
-100
15.15
273.70
574.4
-29.98
123.73
62.8

1091.34
0
1091.34

734.78
0.00
326.95
0.00
326.95

70.31
0.00
35.99
0.00
35.99

330.09
0.00
-144.17
0.00
-144.17

18.55
0
-11.67
0
-11.67

0
3201.31
1553.78
1647.53
139.84
1507.69
458.77
1048.92

0.00
1,061.73
439.46
622.27
3.72
618.55
133.34
485.21

0.00
54.35
51.87
56.24
2.95
63.09
75.89
60.30

0.00
185.92
267.08
-81.16
10.07
-91.23
149.72
-240.95

0
6.15
20.76
-4.7
7.76
-5.7
48.44
-18.68

Profit and loss a/c Interpretation:The Sales has increased by 26.40% in comparative figures of 2010 -2011. And Decreased by6.68% in comparative
figure of 2011-2012. A sale has increased at decreasing rate. It indicate in market share and efficient marketing
management strategies has been applied. The cost of goods sold decreased by -41.17%in 2010-2011comparative
figure andit will increased 12.94% it indicate is decrease in cost of goods sold on 2010-2011 however in 2011-2012
indicating in year to year comparison reduction in efficiency due to decrease in production cost or may be due to
change in production process. The operating expenses Administrative exp is decreased in in 2010 as well in 2012
also. Non operatin expenses are increasing in comparative statement of 2010-2011 to 2011-2012. While there is
decline in Net profit after tax as well in net profit before tax as per this comparative statement.

DLF Comparative of Balance sheet as on 31 March

year to year comparison
March'2012

March '11

March '10

2010-11
difference

2011-2012
%

difference

d=a-b

[d /a *100]

e=b-c

[e /b *100]

-0.17
-685.9
0
-686.07
2856.03
228.4
3084.43
2398.36

-0.05007
-5.09169
0
-4.96775
19.42785
63.64776
20.48155
8.307436

0
0
-480.98
-135.59
-345.39
121.48
-9.41
278.34
-249.07
-232.65
-203.38
-442.26
42.35
-603.29
-3628.46
393.49
-3234.97
2631.68
2398.36

0
0
-22.4404
-33.8746
-19.8147
5.523701
-0.13372
3.317754
-92.1765
-173.723
-2.31283
-2.86885
100
-2.48761
-67.2673
40.68047
-50.8534
14.70998
8.307439

Sources Of Funds
Equity Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities

339.68
14156.88
0
14496.56
11844.67
130.45
11975.12
26471.68

339.51

339.48

-0.03

13,470.98

12,490.53

-980.45

-7.84

13,810.49

12,830.01

-980.48

-7.64

14,700.70

11,590.19

-3110.51

-26.84

358.85

1,047.67

688.82

65.74

15,059.55

12,637.86

-2421.69

-19.16

28,870.04

25,467.87

-3402.17

-13.36

Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Total Assets

2624.35
535.86
2088.49
2077.77
7046.65
8111.07
519.28
366.57
8996.92
15858.17
0
24855.09
9022.55
573.78
9596.33
15258.76
26471.67

2,143.37

2,002.85

-140.52

-7.01

400.27

273.84

-126.43

-46.17

1,743.10

1,729.01

-14.09

-0.81

2,199.25

1,718.51

-480.74

-27.98

7,037.24

6,558.88

-478.36

-7.3

8,389.41

6,533.69

-1855.72

-28.4

270.21

607.96

337.75

55.55

133.92

37.82

-96.1

-254.78

8,793.54

7,179.47

-1614.07

-22.48

15,415.91

11,631.40

-3784.51

-32.15

42.35

133.61

91.26

68.3

24,251.80

18,944.48

-5307.32

-28.01

5,394.09

2,047.37

-3346.72

-163.47

967.27

1,435.66

468.39

32.62

6,361.36

3,483.03

-2878.33

-82.68

17,890.44

15,461.45

-2428.99

-15.7

28,870.03

25,467.85

-3402.18

-13.36

Balance sheet Interpretation:In comparative balance sheet there is decrease in equity share capital as compare to 2010-2011 to 2011-2012. Same
way there is increase in net worth by -7.67% to -4.96% in 2011- 2012. On the same way there is also current liability
which is increased by -67.26%as compared to previous year. The company has geared down by not utilizing external
interest bearing funds. The company fixed asset ha mildly increased by 29.21% indicating small expansion of business or
improvement for long term benefits.

Dlf Trend Analysis of Profit and Loss statement for year ended on 31
March

Particular
Net Sales
Less: Cost of goods Sold
Gross profit =(A-B)
Less: Operating expenses
Administration Exp.
Miscellanea exp.
Total D
Operating profit (C-D)
Add: non operating income
Other income

2010(Rs.)
2,307.08

979.75
1,327.33

100.00%
100.00%
100.00%

100.00%
41.38 100.00%
282.23 100.00%
240.85

1,045.10
908.56
908.56

Less: Non Operating Exp.

PBDIT
Less: Interest
PBDT
Less: Depreciation
Net profit before tax
Less: tax
Net profit after tax (H-I)

0
1953.66
847.24
1106.42
126.05
980.37
175.71

804.66

100.00%
100.00%
100.00%
100.00%
0.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%

2011(Rs.)

2012(RS.) %
3491.32 151.33%
2,916.08 126.40%
938.58 95.80%
1060 108.19%
1,977.50 148.98%
2431.32 183.17%
62.27%
115.15%
47.65
197.62 70.02%
149.97

1,779.88 170.31%
0.00%
1235.51 135.99%
1235.51 135.99%
0.00%
0
154.35%
3015.39
1286.7 151.87%
1728.69 156.24%
129.77 102.95%
1598.92 163.09%
309.05 175.89%
1289.87 160.30%

0
0.00%
321.35 776.58%
321.35 113.86%
2109.97
1091.34
1091.34
0
3201.31
1553.78
1647.53
139.84
1507.69
458.77
1048.92

201.89%
0.00%
120.12%
120.12%
0.00%
163.86%
183.39%
148.91%
110.94%
153.79%
261.09%
130.36%

Interpretation:The net sales has increased continuously proportionately throughout from 2010 to 2012. The cost of goods sold
however increased at increasing rate comparatively indicating either due increase in cost of manufacturing or lower
efficiency in manufacturing. The Administrative exp. and miscellaneous exp. Are constantly increased there for
entire effect of increased in operating exp. The net profit after Tex has shown increasing trend though it shown lower
130.36% due to non operating expenses and higher in 2011 at 160.30% due to increase in non operating income.

Ratio Analysis
INTRODUCTION OF RATIO ANALYSIS: The relationship of these two figure expressed mathematically is called a ratio. The ratio to the
numerical or quantities relationship between two variables or times. A ratio is calculated by dividing
one item of the relationship with the other. The ratio analysis is one of the most useful and common
methods of analyzing financial statement. Ratio enables the mass of data to be summarized and
simplified. Ratio analysis is an instrument for diagnosis of the financial health of an enterprise.
It refers to the systematic use of ratios to interpret the financial statements in terms of the operating
performance and financial position of a firm. It involves comparison for a meaningful interpretation of
the financial statements.
In view of the needs of various uses of ratios, which can be calculated from the accounting data are
classified into the following broad categories.
A ratio is only a comparison of the numerator with the denominator. The tern ratio reefers to the
numerical or quantitative relationship between two figures and obtained by dividing th
Ratio analysis is an important and age old technique of financial analysis. The data given in financial
statements ratio are relative form of financial data and very useful techniques to cheek upon the
efficiency of a firm. Some ratio indicates the trend or progress or downfall of

Importance of Ratio:
Ratio analysis of firms financial statement is of interest to a number of parties mainly.
Shareholders, creditor, financial executives etc. shareholders are interested with earning capacity
of the firm: creditors are interested in knowing the ability of firm to meet financial obligation and
financial executives are concerned with evolving analytical tools that will measures and compare
costs, efficiency liquidity and profitability with a view to making intelligent decisions.

Limitation of Ratio Analysis

Ratio analysis is as already mentioned, a widely used tool of financial analysis. It is because ratios are
simple and easy to understand. But they must be used very carefully. They suffer
Some of the limitations of ratio analysis are given below:
Difference in definition: comparisons are made difficult due to difference in definitions
Lack of proper standards: it is very difficult to ascertain the standard ratio in order to
make proper comparison. Because it differs from firm to firm, industry to industry.
Changes in accounting procedure: it different firms for their valuation follow method then
comparison will practically be of no use.
Personal Bias: Ratios have to be interpreted and different people may interpret the same ratio in
efferent ways. The analyst has to carry further investigation and exercise. His
judgment in arriving at a correct diagnosis.

A. CURRENT RATIO

The current ratio measures the short-term solvency of the firm. It establishes the relationship
between current assets and current liabilities. It is calculated by dividing current assets by
current liabilities.
Current Ratio = Current Asset
Current Liabilities
Current assets include cash and bank balances, marketable securities, inventory, and debtors,
excluding provisions for bad debts and doubtful debtors, bills receivables and prepaid expenses.
Current liabilities includes sundry creditors, bills payable, short- term loans, income-tax liability,
accrued expenses and dividends payable.

Year

Current asset

Current liabilities

Ratio

2012

8996.92

9022.55

0.99

2011

8793.54

5394.09

1.63

2010

7179.47

2047.37

3.51

INTERPRETATION:
In the comparison of Three years Current Ratio, Current ratio of Dlf is (3.51) in 2010, which is higher to both
year.
Year 2011 has increased ratio which shows company is able to satisfy its short term Obligation. The current
ratio of 2010 3.51 which shows current situation of iorganization.

B. TOTAL ASSET TURN OVER RATIO

This ratio shows the firms ability to generate sales from all financial resources committed to
total assets. It is calculated by dividing sales by total assets.
Total asset turnover = Total Sales
Total Assets

Year

Total sales

Total assets

Ratio

2012

3491.32

26471.67

0.13

2011

2916.08

28870.03

0.10

2010

2307.08

25467.85

0.09

INTERPRETATION:
In the Year of 2012, comparison of three years Total Asset Turnover Ratio of Dlf is (0.13) is the two year
which is increased from last two years. This ratio shows the total asset turnover during year. In 2010 and in
2011 the ratio was increased by year to year.

C. WORKING CAPITAL TURN OVER RATIO

A higher ratio is an indicator of better utilization of current assets and working capital and vice-versa (a lower
ratio is an indicator of poor utilization of current assets and working capital). It is calculated by dividing sales
by working capital.

Net working capital turnover ratio =

Total Sales
Working Capital

Working capital is represented by the difference between current assets and current liabilities.
Year

Total sales

Working Capital

Ratio

2012

3491.32

-25.63

-136.22

2011

2916.08

2299.45

0.86

2010

2307.08

5732.10

0.45

INTERPRETATION:
In the Year of 2011, comparison of three years Net working capital turnover ratio of Dlf is (0.86) which is
higher than other years.
Net Working Capittal of dlf is higher in 2011 0.86 which is increased. In 2012 the net workin capital turnover
ratio shows negative in it is decreased form the previous year.

D. INVENTORY TURNOVER RATIO

This ratio indicates the number of times the inventory has been converted into sales during the
period. Thus it evaluates the efficiency of the firm in managing its inventory. It is calculated by
dividing the cost of goods sold by average inventory.

Inventory Turnover Ratio =

Net sales
Average Inventory

The average inventory is simple average of the opening and closing balances of inventory.
(Opening + Closing balance /2). In certain circumstances opening balance of the inventory
may not be known then closing balance of inventory may be considered as average inventory
Year

Net sales

Average inventory

Ratio

2012

3491.32

8250.24

0.42

2011

2916.08

7461.55

0.39

2010

2307.08

6490.56

0.36

INTERPRETATION:
In the Year of 2012, comparison of three years Inventory Turnover Ratio of Dlf is (0.42) which is higher than
other two years.
Year 20012 has highest Inventory Turnover Ratio which is not a better for the company rather than other years.
company inventory are decrease for 2011 as well in 2010 also. Company will in improve the inventory turnover
during the specific year.

E. EARNING CAPITAL PER SHARE

Earning capital per share =

Year

Profit after tex

Pref.. share div.

No. of equ. Share

Ratio

2012

1041.79

0.00

339.68

3.06

2011

1269.58

0.00

339.51

3.74

2010

765.06

0.00

339.48

2.25

In the Year of 2011, comparison of three years Net working capital turnover ratio of Dlf is (3.74) which is
higher than other years. For the company are good wealth for the year and get more benefit on share capital to
the the share holder. In current year the earning capital per share ratio is decreased by 3.06.