INVESTIGATORY PROJECT WORK

IN ACCOUNTANCY

Submitted by :-

CLASS :- XII commerce

GUIDED BY:-
VINAYAK sir ,PGT commerce
pppp
 CERTIFICATE

This is hereby to certify that, the original and

genuine project work has been carried out to
investigate about the subject matter and
related data collection and investigation has
been completed solely, sincerely and
satisfactorily by of 12TH
COMMERCE.Jawahar Navodaya Vidyalaya
,Gajanur, Shimoga regardingly his Project
entitled “ANALYSIS OF FINANCIAL
STATEMENT OF HAMM Pvt. Ltd.”

Signature of signature
SubjectTeacher Principal
ACKNOWLEDGEMENT

It would be my utmost pleasure to express my

sincere thanks to my Commerce Teacher Mr.
Vinayak Koparde providing a helping hand in
this project. Their valuable guidance and a
good informative response from school made
me to complete this project titled “Analysis Of
Financial Statements Of HAMM Pvt. Ltd.,”
Are responsible for attaining its present form.
 Problem details
 Required information
 Problem statement
 Steps to solve
 Consolidated financial
performance
 Graph
 Highlights Of 2011-12
 Consolidated Financial
 Business Development/Operation
 Analysis And Interpretation
Problem details;
Facts of the problem;
Company’s name: HAMM infrastructure ltd.
Background of the company
The HAMM group is a Bangalore head quartered global infrastructure
major with interests in infrastructure agribusiness .founded in 1978,
the group is well diversified and professionally managed
Over time the group has built a distinct identity for it self by
emphasizing on growth through innovation, entrepreneurship and
value based practices across all its transactions with its diverse stake
holders.
Having proven its credentials as a leading infrastructure
conglomerate in India.The group is expanding its operations globally.
Towards this , it has formed a separate division-HAMM international
head quartered in London, to manage its overseas operations.
The underlying philosophy of the group is captured in its
vision statements-“to build entrepreneurial organizations that make
difference to society through creation of value”
It is this fusion of vision, values and philosophy that translates into a
tangible delivery for the benefit to the groups multiple stakeholders
within and outside the country.
Of particular relevance is the groups’ emphasis on inclusive growth
where special attention is given to communities which need attention
and care such as the marginalized and weaker sections of society
Problem statements;

Analyze financial statements for the year

2011-12 to show performance related to
EBITDA (earnings before interest.
tax+depreciation ) ,total assets, net worth, cash
profit and debt equity ratio.also,enumerate key
financial highlights.
Solution:
Consolidated Balance Sheet as on March-31-2012 (Rupees in Crores)

Particulars schedule March-31-2012 March-31-2011

ref.
A.SOURCE OF FUND
1.Share Holders Fund
A.Capital 1 364.13 364.13
B.Reserves And Surplus 2 6107.00 6471.13 5753.07 6117.20
2.Minority Interest 1806.11 1112.60
3.Loan Funds
A.Secured Loans 3 10660.18 6843.83
B.Unsecured Loans 4 1363.61 12023.79 1133.10 7976.93
4.Deferred Tax Liabilities(Net) 19.15 42.50
5.Foriegn Currency Monetory Items 6.87
Total 20327.05 15249.23

B.Application Of Funds
1.Fixed Assets
A.Gross Block 5 11432.60 6691.72
B.Less;Depreciation 1780.97 1421.81
C.Net Block 9651.63 5269.91
D.Capital Work In Progress(Including Capital
Advance) 5463.88 15115.50 3679.57 8949.48
2.Expenditure During Construction
Period,Pending Allocation(Net) 6 1327.05 843.17
3.Investment 7 1310.89 4899.59
4.Current Assets,Loans And Advances
A.Inventories 8 131.88 38.03
B.Sundry Debtors 9 660.91 430.57
C.Cash And Bank Balance 10 2466.52 894.49
D.Other Current Assets 11 17.75 5.84
E.Loans And Advances 12 1261.23 598.97
4538.29 1967.90
Less;Current Liabilities And Provisions 13
A.Liabilities 1886.47 1322.75
B.Provisions 78.22 88.16
1964.69 1410.91
Net Current Assets 2573.60 556.99
Total 20327.05 15249.23
Consolidated Profit And Loss Account For The Year Ended March 31,2012 (Rupees In Crores)
Schedule March-31- March-31-
Particular Ref. 2012 2011
A.Income
Sales And Operating Income 14 4476.19 2697.91
Less:Revenue Share Paid/Payable Concess
Ionary Grantors 456.97 403.13
4019.22 2294.78
Add;Other Income 15 21.37 69.75
Net Income 4040.59 2364.53
B. Expenditure
Less: Generation And Operating Expenses 16 2282.59 1229.74
Less: Adminisstration And Other Expenses 17 669.84 466.54
Less: Interest And Finance Charges 18 368.20 168.71
Less: Depreciation 389.83 178.51
3710.46 2043.50
C. Proift Before Tax And Before Mino
Rity Interest/Share Of Profit Associate
Provision For Tax 330.13 321.03
Less: Current 70.10 35.31
Less: Mat Credit Availed 0.00 (9.26)
Less: Deffered (23.12) 28.04
Less: Fringe Benefit 6.04 4.29
D. Profit After Tax And Before Mino 277.11 262.65
Rity Interest/Share Of Profit Associate
Minority Interest (2.34) 52.57
E.Net Profit After Minority Interest/ 279.45 210.08
Share Of Profit Associate
Surplus Brought Forward 524.21 308.61
Less: Foreign Exchange Fluctuation On Long Term 18.19 0.00
Monetary Liabilities Relating To Acquisition Of
Depreciable Fixed Assets Hitherto Recognized
In The Profit And Loss Account Now Adjusted
To The Carryinng Value Of Depreciable Assets
Add:Adjustment For Gratuity 0.00 0.51
F.Amount Available For Appropriation 785.47 519.20
Appropriattion
Transfer From Debenture Redemption Resereve (3.75) (5.14)
Transfer To Debenture Redemption Reserve 10.66 0.13
Dividend Distibution Tax 0.20 0.13
778.36 524.21
G.Available Surplus Carried To Balannce Sheet
Earning Per Share-Basic And Diluted 1.53 1.23
[Per Equity Share Of 2rs Each]
Statement Significant Accounting Policies And 19
Notes To The Consolidation Account
3.Steps To Solve This Problem
Calculate The Following
A.EBITDA For The 2010-11 And 2011-12
B.Total Asset For The 2010-11 And 2011-2012
C.Net Worth For The 2010-11 And 2011-12
D. Debt Equity Ratio For The 2010-11 And 2011-12

Rupees in Crore
EBITDA 2011-2012 2010-2011
Profit Before Tax 330.13 321.03
Add:Intrest 368.2 168.71
Add:Depreciation 389.83 178.51
1088.16 668.25
Less:Other Income 21.37 69.75
1066.79 598.5
Total Assets:
Fixed Asets 15115.51 8949.48
Assets Under Construction 1327.05 843.17
Investment 1310.89 4899.59
Current Assets 4538.29 1967.9
22291.74 16660.14
Net Worth
Capital 6471.13 6117.2
Reseves And Surplus 1806.11 1112.6
8277.24 7229.8
Debt Equity Ratio:
Debt 12023.79 7976.93
Equity Share Capital 6471.13 6117.2
Reserves And Surplus 1806.11 1112.6
Equity Share Holder Fund 8277.24 7229.8
Debt Equity Ratio: 1.45 1.1
Cash Profit:
Profit After Tax 277.11 262.65
Add: Depreciation 389.83 178.51
Add: Deferred Tax -23.12 28.04
643.82 469.2
Consolidated Financial Performance:(Rs In Crores Except Per Share Data)
 Consolidated Financial Performance :(Rupees In Crores Except Per Share Data)
Basic EPS Cash & Cash&Cash
Year Net &Diluted Growth Cash Equivalent/ Current
End Revenue EBITDA Pat EPS (%) Equivalent * Assets (%) Ratio
FY 2012 4010.22 1066.79 277.11 1.53 24.40% 2781.18 12.48% 2.31
FY 2011 2294.78 598.5 262.65 1.23 10.80% 5779.28 34.69% 1.39
FY 2010 1696.74 543.68 241.77 1.11 108.00% 1562.32 22.36% 2.57
FY 2009 1061.65 453.04 93.62 0.53 0.00% 931.44 21.28% 2.77
[*cash+mutual fund+bonds + govt.securities+certificate of deposit+investment in quoted equity
shares]

Graph

1066.7
1200
9
1000

800 2008-09
598.5
600 543.68 2009-10
453.04
2010-11
400
2011-12
200

EBITDA

300 277.11
262.65
241.77
250

200 2012
150 2011
93.62
100 2010

50 2009

0
PAT
 EPS Growth
120.00% 108.00%
100.00%
80.00%
60.00%
EPS Growth
40.00% 24.40%
20.00% 10.80%
0.00%
0.00%
2012201120102009

Cash and Cash

eqalants
20
931.44 12
1562.32 20
11
2781.18 20
10
5779.28

Basic and Diluted EPS

0.53

1.53 2012
2011
1.11
2010
2009

1.23
 Current Ratios
2.77
3 2.57
2.31
2.5
2
1.39
1.5
1
0.5
0
2012 2011 2010 2009

Highlights of 2011-12

Consolidated financials
 Gross revenues up by 65.91% from Rs2697.91 crore to Rs4476.91 crore
 Net revenues up by 75.15% from Rs 2294.78 crores to Rs 4019.22 crore
 EBITDA up by 78.24% from Rs 598.50 crores to Rs 1066.79 crore
 PAT (after minority interest) increased by 33.02% from Rs 210.08% crore to
279.45 crore.
 PAT (before minority interest) increased by 5.51% from Rs 262.65 crores to
227.11 crore
 Cash profit (PAT before minority +depreciation + deferred tax) increased by
37.21% from Rs 469.20 crores to Rs 643.82 crores
 Total asset increased by 33.80% from 16,660.14 crores to 22,291.74 crores
 Net worth increased by 14.49 % from Rs 7,229.80 crores to Rs 8,277.27 crores

Business developments/ operations

 HAMM kamalanga energy ltd .has achieved financial closure for the 1050 MW
plant set up in dhenkanal district in state of Orissa. The debt component of Rs
3405 crore has been tied up with 13 banks.
 Vemagiri power generation Ltd(VPGL) has resumed operation in December
2008
 HAMM power corporation pvt ltd has achieved best ever operation
performance in terms of plant load factor(80.31%)and heat
rate(1.856kcal/kwh).
  Acquired 100% ownership in island power project, a Singapore based power
utility currently developing on 800 mw combined cycle power facility in
jurong island, Singapore
 The construction work for a terminal 3 at indira Gandhi international airport
(IGIA),Delhi is proceeding as per the schedule, an overall progress of 71.60 %
has been recorded till June 30, 2012
 Novotel hotel,has 305 rooms hotel at RGIA has commenced operations during
October 2011.the hotel is operated and managed by the accor hotel a renowned
international hotel chain.
 GHIAL has entered into an agreement with MAS aerospace engineering for
setting up a 50:50 joint venture maintenance, repair and overhaul(MRO)
company in Hyderabad.
 Taking over of operation and development of Istanbul sabiha gokcen
international airport (ISGIA) in may 2011. The overall construction progress of
78.20% has been recorded till june 30 2012
 The company has recently won bid for the 181 km Hyderabad – Vijayawada
NHAI project and has emerged as the lowest bidder for the 29.65 km Chennai
outer ring road project

Analysis and interpretation

 The debt equity ratio has increased significantly mainly due to increase in
secured loan in 2011-12 standing

5000
4500
4000
3500
3000 2008-09

2500 2009-10

2000 2010-11

1500 2011-12
1000
500
0
1

Consolidated gross revenue (Rs in crore)

“Our consolidated revenue has increased more than 4 times between FY 2008-2012”

3.39%

11.67%

roads
47.78% others
power

37.16% airports

 At Rs 10660.18 Crores. An increase of 25% as compared to 2010-2011. This

indicates debt servicing cost will increase as a fixed cost(interest cost) which
may lower share holders return over the next few years. Recent recessionary
economic conditions escalated cost of project completion has resulted in this
situation
 Current ratio as a measure of current assets and current liabilities has increased
from 1.39 in 2010- 11to 2.31 in 2011-12.this is due to increase in cash and
bank balance on account of some of the projects being finally completed.
 Profits before tax have increased a lot due to good earning capacity of the firm.
 Total assets of the firm have increased due to increase in the capital of the firm