MBA project.docx

Finance Project Report on Profitability Analysis of SMSIL

PROFITABILITY ANALYSIS:

An empirical approach has become very popular during the recent years. The reason

for the growing popularity of the subject is that it primarily concerns with the concept and

techniques of the analysis of profitability which can be advantage only used by managers,

creditors, owners.

Analytical and critical assessment of the various aspects of financial principles helps

judicious application of assets and enables to take right decision at right time. A

comprehensive idea is gained to run day to day business in proper perspective.

PROFIT & PROFITABILITY

1. Concepts of Profit:

Profit plays an important role in every business organization and its determination is

really a tough one. Profit is not only concern with the proprietors but also income-tax

authorities, managers, directors etc. because all of them are get a percentage of net profit.

Even the accountants are not unanimous on this matter.

Now question arises, "What is Profit?"

Law and even the accountants have not defined the word "Profit". Generally speaking

"The Profit of Business during a given period is the excess of income over expenditure for

the period." It may arise from other sources.

There are three concepts of profit:

1. Economic Profit

2. Accounting Profit

3. Social Profit

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Job or project profitability is key of your business success. So if you bill clients based

on time spent, then Timesheet will be a key part of maximizing project profitability, as it will

help to avoid missing time recording and ensuring that all time spent on the job gets recorded.

It will also help ensure that time is recorded regularly - not weeks later when recall can be

sketchy and the chances of inaccurate recording and under billing are high.

If you bill projects based on quotations or estimates, a negotiated fee or list prices for

different types of project, it is still important to track time, costs and/or a "standard" or

"normal" fee, to provide you with project profitability analysis.

Using project profitability analysis is key to the long-term health of your business. You need

to be able to see whether or not you are achieving target profitability on projects - and if you

are not, you need to understand why.

To make these measurements, some Timesheet customers use "full cost" rates - which

exclude the profit element. Some use "standard charge" rates - which include the budgeted

overall profit percentage. In fact, some Timesheet customers use both

If you are just going to use one rate, we advise using "standard charge", as this will provide a

variance on most jobs, which can be expressed in percentage terms. With "full cost" rates,

greater discipline is required when reviewing

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COMPANY PROFILE:

SMS Infrastructure Ltd is one of the pioneer infrastructure company in India having

core competency in highway construction with an annual turnover of Rs 200.00 Crores (US $

45 Million). Presently we are executing two highway projects under National Highway

Authority of India involving flyovers, overpass / underpass bridges, tunnels and aqueduct

after having completed several projects successfully. We have also executed projects related

to Railways, Irrigation, Water Suply and Waste Management. We have also established an

overseas branch office in Addis Abeba and are in the process of participating in six tenders

with Ethiopian Roads Authority.

Since last 43 years of its existence, SMS has grown to become one of the largest

infrastructure companies in Central India managing the work professionally even though it is

closely held. SMS has been expanding its presence across the country and abroad and is

today present across more than 10 cities in India having branch offices and various site

offices together with an employee base of over 1300. We are among the first 500 unlisted

companies in the country in terms of turnover.

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Late Shri Shaktikumar M. Sancheti Founder of the SMS Group


Brief Journey Of SMSIL:

• 1963 - 1985:

• Founded by late Mr. Shantikumar M Sancheti.

Construction portfolio strengthened

• 1986 - 1988:

• Started country’s first Road BOT project with NHAI

• Added trading of Heavy Machinery spare parts to portfolio

• 1989 – 1996:

• Added Mining (1989) & Railway (1991) to portfolio

• 1997 - 2004:

• SMS Ltd. formed. Entered into Electrical (1997), Irrigation (1998) & Toll

(2000)

• Completed 5th highest density corridor (2002)

• 2004-2005:

• Global brand formed - SMS Infrastructure Limited

• Started Enviro Division (2004)

• 2006:

• Started owning mines in its own name

• Best Structure Award for Twin Tube Tunnel and Viaduct on KatrajGhat

Bypass Road

• 2007-2008:

• Won largest Uranium Mining project from UCIL

• Won First Hydro project and made entry into Clean Energy

• Enter into Urban development

• 2009:

• World‘s first largest plasma gasification Waste-to-Energy plant commissioned

• Awarded Coal Mine with CMDC

• Started coal export from Indonesia

• 2010:

• SMS's Mumbai Bio-Medical Waste portfolio becomes biggest in Asia

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The main focus of our business is in

SMS Infrastructure Ltd. is a company with good track record of Quality & Technical engineering

capability since 1964. We are Central India’s largest professionally managed Infrastructure Company

which figures in the list of first 500 unlisted Companies of India, Limca Book of Records etc. and

have been awarded with several National Awards for its State of art work in field of Infrastructure.

Company has expertise in the Development of following infrastructure Projects:-

Highways Constructions

Mining

Railways

Power

Irrigation

Environment

Urban and Rural Development

PPP projects

SMS Today - Proven track record for 46+ years

1100+ crore in turnover

1800+ employees, 2800+ contracted labor force

Major 53 Government& PSU clients

Footprints in India, Singapore, Ethiopia & Indonesia

Among the first 500 unlisted companies in India by turnover

Focus Areas:

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COMPANY OVERVIEW

SMS Infrastructure Limited operates as an infrastructure company. It engages in the

execution and the construction of various projects in various segments, such as construction

of roads and toll management, mining, urban and rural development, and PPP projects. The

company also provides environment projects, including hazardous, bio-medical, waste, and

municipal waste management projects; and transportation toll projects, such as construction

of toll plazas and collection of toll/user fees. In addition, it offers irrigation projects, such as

construction of earthen, masonry, concrete dams, lined and unlined canals, and pump houses;

construction of large diameter tunnels fabrication and erection of gates; and construction of

lift irrigation projects. Further, the company provides construction services for transportation

railways, including construction of broad gauge railway lines, broad gauge railway sidings,

railway tunnels, and R.O.Bs; and services for transportation highways, such as construction

of highways, flyovers, road tunnels, and bridges, as well as operation and maintenance of

highways. Furthermore, it offers power projects, such as construction/raising of ash bunds;

ash disposal and water recovery pipelines land development for power plants construction of

pump houses; and transmission lines and hydro power projects. SMS Infrastructure Limited

was founded in 1963 and is based in Nagpur, India.

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Roads Irrigation Railways Tolls Roads O&M

Mining Electrical Enviro & Clean Energy

Urban Development

Others


VISION:

To Contribute in our humble way to the gigantic task of nation building by diversified

activities adhering to the highest traditions of quality and ethics thus creating lasting value for

all the stakeholders.

MISSION:

We shall offer the highest level of customer satisfaction by consistently delivering innovative

solutions to customer needs using state-of-art technology, knowledge, skills and

commitments.

About SMSIL:

SMS Envocare is the group company promoted by SMS Infrastructure Ltd. In a short span of

time the company has emerged as one of the major Environmental Infrastructure

development company.

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OBJECTIVES OF COMPANY:

-To provide specialized services & solutions to diversified Environmental Issues.

-To develop Common Solid as well as liquid waste management & disposal sites on

BOO, BOOT & EPC basis.

-To assist entrepreneurs in getting all legal & Environmental clearances right from

establishment to commissioning.

-To train industry for effective management of Effluent & Hazardous Waste.

-To provide Analytical services to the Industries.

-To improve the efficiency of the existing ETP by doing performance audit.

-To train industries on 3R (Reduce, Recycle & Reuse) concept.

The company believes in adopting the best eco-friendly technology available world over

for the scientific disposal of wastes. Hence in 2005-06 the company signed an agreement

with Westinghouse Corporation US (Now Alter NRG Corporation Canada) for destruction of

Incinerable Hazardous Waste by Plasma Gasification vitrification Technology. This state of

the art Technology is being used at the two TSDF Sites of the company.

Looking at the need of the hour SMS Envocare has started various other Environmental

Service that will help the Entrepreneurs in making this globe clean, Green & Ecofriendly.

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BOARD OF DIRECTORS:

The company is managed by experienced and dynamic persons having vast knowledge in the field of infrastructure and mining.

THE MANAGEMENT:

HemantLodha Senior Vice President - Enviro& Clean Energy

SuhasNemade Vice President - Roads, Railway, Irrigation

Kaserneni R. Rao Vice President - Mining

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Abhay H. Sancheti Chairman

Ajay S. Sancheti Vice Chairman & Managing Director

Anand S. Sancheti Joint Managing Director

Anil H. Sancheti Director (Technical)

DilipB.Surana Director (Technical)

Ajay Lakhotiya Director

Hiralal R. Patel Independent Director

Naresh N. Pugalia Independent Director

Anil Rathi Independent Director


Rajiv B. Charde Vice President - Roads, Irrigation

Sandip J. Dhodapkar Associate Vice President - Commercial

DattatrayKinage Associate Vice President - Roads O&M, Tolls

Srikant D. Dahake General Manager – Electrical

S.K.Panigrahi General Manager - Finance

SMSIL Group of Companies:

Infrastructure Construction and Management

SMS Infrastructure Ltd.

SMS Infrastructure and Developers Ltd.

Mining

Veet Rag Homes Pvt. Ltd.

SMS Mine Developers Pvt. Ltd.

Pt. SMS Minerals International, Indonesia.

SMS Infrastructure Pte Ltd, Singapore.

Bhatgaon Mines Pvt. Ltd.

Bhatgaon Extension Mines Pvt. Ltd.

Real Estate

San Commercials Private Limited

MPA Infrastructure Private Limited

BSS Associates

Gorakshan Land Development Private Limited

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Waste Management

Butibori CETP Pvt. Ltd

VidharbhaEnviro Protection Limited

Maharashtra Enviro Power Limited

SMS Envoclean Private Limited

SMS Waluj CETP P. Ltd.

SMS Vidhyut P. Ltd.

SMS Water Grace BMW Private Limited

SMS Envocare Limited

SMS Envoprotect Private Limited

Multilevel Car Parking

SMS Parking Solutions Private Limited

Toll Management

SMS Shivnath Infrastructure P Ltd.

Valencia Constructions P Ltd.

Patwardhan Infrastructure P Ltd.

RCCL Infrastructure Ltd.

SMS Tolls and Developers Ltd.

Hospitality

Fountain Sizzlers and Bistro a unit of Veet Rag Developers Pvt. Ltd

Manufacturing and Trading

Rishik Motors Private Limited

Sanbro Spares Private Limited

Finance and Consultancy

San Finance Corporation

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http://www.sanbrosspares.com/

http://www.smsenvocare.co.in/

http://www.smsmepl.com/


Our JV Partners

Khare and Tarkunde Infrastructure Pvt. Ltd.

Solar Industries Ltd.

D Thakkar Constructions Pvt. Ltd.

S N Thakkar Constructions Pvt. Ltd

BholasinghJaiprakash Construction Pvt. Ltd.

Shreenath Enterprises Ltd.

Major Environmental projects of the company:

- Two state of the art Common Hazardous Waste Treatment, Storage, Disposal Facilities at

Ranjangaon, near Pune & Butibori near Nagpur.

- Three Common Effluent Treatment Plants at Butibori, near Nagpur, Kagal near Kolhapur

&Waluj near Aurangabad

- Four Common Bio-Medical Waste Treatment & Disposal Facilities at Delhi , Mumbai ,

Aurangabad & Nasik.

Business Sectors:

SMS Infrastructure Limited is distinguished by its vision, optimism and confidence it

displays in taking on the toughest of challenges.

We execute the construction of technically complex and high value projects across segments

such as Construction of Roads and Toll Management, Mining, Railways, Power, Irrigation,

Environment, Urban and Rural Development and PPP projects. These projects exhibit SMS's

premier trademark – which is quality, excellence, and precision, turning them into

engineering and construction marvels in their respective categories.

ENVIRONMENT

Hazardous Waste Management

Bio-Medical Waste Management

Waste Water Management

Municipal Waste Management

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IRRIGATION

Construction of Earthen, Masonry, Concrete Dams and Construction of Lined, Unlined canals

Construction of Pump Houses

Construction of Large Diameter Tunnels Fabrication and Erection of Gates

Turnkey Construction of Lift Irrigation

TRANSPORTATION RAILWAYS

Construction of Broad Gauge Railway Lines

Construction of Broad Gauge Railway Sidings

Construction of Railway Tunnels

Construction of R.O.B.

TRANSPORTATION HIGHWAYS

Construction of Highways

Operation and Maintenance of Highways

Construction of Bridges

Construction of Flyovers

Construction of Road Tunnels

POWER

Construction / Raising of Ash Bunds Ash Disposal and Water Recovery Pipelines Land Development For Power Plants

Construction of Pump Houses

220 /440KV Transmission Lines. Hydro Power Projects.

TRANSPORTATION TOLL

Construction of Toll Plazas Collection of Toll/User Fees

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SMS ENVOCARE LTD:

SMS ENVOCARE LTD. is Group Company of SMS Infrastructure Ltd., Nagpur

engaged in providing Environmental Infrastructure projects and Consultancy Services. The

company has the expertise of providing total solutions for scientific treatment & disposal of

various types of wastes solid as well as liquid by the latest eco-friendly technologies.

SMS ENVOCARE LTD has dedicated team of highly professional well-experienced

personnel having rich expertise in Environmental Sector.

Vision:

“To Create 'National Prominence' and 'International Presence' in Environmental

Infrastructure Projects & to Enrich the Nature for Better Tomorrow "

Mission:

" To exceed the expectations of all "

- Stakeholders

- Government

- Customers

- Employees

- Shareholders

- Lenders

- Suppliers

- Society

Projects of SMS EnvocareLdt.

1) Common Hazardous Waste Transportation, Storage and Disposal Facility:

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Hazardous Waste generally exhibits characteristics as ignitable (i.e. flammable),

oxidant, corrosive, toxic, radioactive , explosive has the potential to pose a substantial hazard

to human health or the environment when improperly treated, stored, transported or disposed

off. Hence proper treatment is necessary for this type of waste.

The company has developed two state of the art Common Hazardous Waste

Transportation, storage and disposal facilities at Ranjangaon near Pune &Butibori near

Nagpur

Plants:

Maharashtra Enviro Power Ltd., Pune.

VidharbhaEnviro Protection Ltd., Nagpur

Maharashtra Enviro Power Ltd.

Maharashtra Enviro Power Limited is a Special Purpose Vehicle promoted by SMS

Infrastructures Ltd. registered under companies' act 1956 with a target to BUILD, OWN, And

OPERATE & TRANSFER (BOOT), a Common Hazardous Waste Treatment, Storage and

Disposal Facility (CHWTSDF) at Ranjangaon, Pune.

Life of the project:

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Project being on BOOT basis. MEPL will provide operational services for 20 years and

post monitoring and maintenance services for 30 years i.e. total Life of project is 50 years

VidharbhaEnviro Protection Ltd.

VidharbhaEnviro Protection Limited is a Group Company promoted by SMS

Infrastructures Ltd. registered under Companies Act 1956, with a target to BUILD, OWN,

And OPERATE & TRANSFER (BOOT), a Common Hazardous Waste Treatment, Storage and

Disposal Facility (CHWTSDF) at Mandwa, Nagpur.

Demand of the Project.

The Hazardous Waste (Management & Handling) Rules, 1989 bar the industries from

dumping their solid wastes indiscriminately. At the same time they permit the industries to

dispose off their wastes in safe & secured manner. It has been made mandatory by the

government to dispose off Hazardous waste in systematic and scientific disposal way and

pollution control boards have been asked to ensure it. For systematic & scientific disposal of

solid wastes, a facility can be constructed where care is to be taken to avoid any negative

effects on the environment.

Benefits and Advantages of project

The proposed CHWTSDF facilitate better management of the industrial wastes. It is the showcase for other states for management of hazardous waste with additional

benefit of green and clean Environment.

It minimizes the pollution load on environment from industrial hazardous waste.

It generates green and clean power by recovering waste heat from PGVR.

Compliance with prescribed regulatory norms which in turn avert the risk of closure

on account of violation of rules

It reduces the number of hazardous waste sites in the area and also eliminates the

pollution potential

Possibility for recovery of material can be researched at common site.

The management of wastes is relatively easier & economically viable at common

facility.

Cost of environmental monitoring is less at common facility

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In absence of expertise or availability of less expertise this route is confirmed to be

most viable and workable

Reduced environmental liability due to captive storage of hazardous waste in the

premises of industries

Better occupational health and safety at individual industry level

Prevention of natural resource contamination thereby improving overall

environmental status of the region

Competitive advantage in international markets vis-à-vis grading of the products on

environmental consideration.

(2) Common Bio-Medical Waste Tratement and Disposal Facility:

It comes from biological sources; common producers of biomedical waste include hospitals, health clinics, nursing homes, and medical research laboratories, offices of physicians & dentists, and home health care. .

The company has developed three state of the art Common Biomedical Waste

Treatment and disposal facilities at Mumbai, Delhi &Nashik.

Plants:

SMS Envoclean Pvt. Ltd., Mumbai SMS-Water grace BMW Pvt. Ltd., Delhi

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SMS Envoclean Pvt. Ltd.

This company is a joint venture company of SMS Infrastructure Ltd. & Water grace

Products Pvt. Ltd. The company is engage in Collection, Transportation & disposal of the Bio

Medical waste being generated in the corporation limits of Mumbai. The Facilitator of this

facility is MCGM & the monitoring authority is Maharashtra Pollution Control Board. This

Facility is situated at Deonar.

SMS-Water grace BMW Pvt. Ltd.

A joint venture company of SMS Infrastructure Ltd. & Water Grace Products Ltd.

The company is responsible for the collection storage treatment & disposal of bio-medical

waste generated in the city of Delhi. This facility is located at Nilothi New Delhi. This plant

will be operational by Sept. 2010.

Objectives:

To collect & receive the BIOMEDICAL WASTE from HEALTH CARE

FACILITIES.

To ensure proper storage of the wastes as per their classification, characterization and

compatibility.

To analyze and decide the treatment and disposal scheme of wastes as per the

guidelines of MoEF, CPCB & MPCB.

To optimize the treatment and disposal cost by management practices and provide the

very economical services to the hospitals.

To register the all the health care facilities as the member of the CBMWTSDF.

To educate and make the individual health care facilities aware of storing the wastes

in scientific manner and comply with the applicable regulations.

To conduct the public awareness program.

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(3) Common Effluent Treatment Plant:

Enormous quantities of industrial effluents from various industries are released in

environment causing pollution.CETP plays a major role in handling of these effluents

effectively to make environment safe and healthy..

The company has developed three state of the art Common Effluent Treatment Plants

at Butibori near Nagpur, Kagal near Kolhapur &Waluj near Aurangabad.

Plants:

Butibori CETP Pvt. Ltd., Nagpur Kagal CETP Pvt. Ltd., Kolhapur SMS Waluj CETP Pvt. Ltd., Aurangabad

Butibori CETP Pvt. Ltd.

A SPV of SMS Infrastructure Ltd &Butibori Manufacturers Association. The

objective of this company is to treat the Effluent being generated by the Industries in the

MIDC Butibori& MIDC Hingna and meeting the disposal norms as specified by the

Maharashtra Pollution Control Board. In this facility MIDC is the facilitator & MPCB is the

monitoring authority. Capacity of CETP is about 5 MLD.

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Kagal CETP Pvt. Ltd.

A turnkey project of 10 MLD has been done by SMS Infrastructure Ltd at Kagal

Industrial Area. The objective of this CETP is to treat the Effluent being generated by the

Industries in the Kagal Industrial Area & meet the disposal norms as specified by the

Maharashtra Pollution Control Board. In this facility MIDC is the facilitator & MPCB is the

monitoring authority. Capacity of CETP is 10 MLD with 20% overloading capacity.

SMS Waluj CETP Pvt. Ltd.:

A SPV of SMS Infrastructure Ltd &Waluj Industrial Association. The objective of

this company is to treat the Effluent being generated by the Industries in the Waluj Industrial

Area & meeting the disposal norms as specified by the Maharashtra Pollution Control Board.

In this facility MIDC is the facilitator & MPCB is the monitoring authority. Capacity of

CETP is about 10 MLD.

Benefits and Advantages of project:

Wastewater of individual industries often contains significant concentration of

pollutants and to reduce them by individual treatment up to the desired concentration,

become techno-economically difficult. The combined treatment provides a better and

economical option because of the equalization taking place in the CETP.

Other benefits of common treatment include scarcity of land at the industry's level and

a comparatively easier availability of professional and trained staff for the operation

of CETP, which can otherwise be difficult, at the individual industry level.

For the regulatory authorities also, common treatment facility offers a comparatively

easier means of ensuring compliance of stipulated norms.

Cost of Laboratory analysis & plant operation is less at common facility than the cost

expenditure of individual units together Better occupational health and safety at

individual industry level.

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OBJECTIVES:

1. To study the Profitability of SMS Infrastructure Limited.

2. To study the reliable profitability information about SMSIL.

3. To study the past result in respect of earning & financial profit of the firm, & to help

in forecasting the future results.

4. The analysis would be enable the present & future earning capacity & the profitability

of the firm

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HYPOTHESIS:

1. The firm was profited since last 3 year.

2. The expectations are quite high regarding the overall performance of the firm.

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LIMITATIONS:

1. The study is SMS Infrastructure Limited only.

2. The span of study is also limited for the year 2007-08, 2008-09& 2009-2010.

3. College has allotted only 45 days for Project study.

4. The reliability of analysis depends on the accuracy of the figure used in the

financial statement.

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RESEARCH METHODOLOGY:

RESEARCH METHODOLOGY:

Methodology is defined as

1. "the analysis of the principles of methods, rules, and postulates employed by a

discipline

2. "the systematic study of methods that are, can be, or have been applied within a

discipline

3. "A particular procedure or set of procedures.

4. Concept

It should be noted that the word "methodology" is frequently used when "method" would

be more accurate. (This is a classic example of word inflation.) For example, "Since students

were not available to complete the survey about academic success, we changed our

methodology and gathered data from instructors instead". In this instance the methodology

(gathering data via surveys, and the assumption that this produces accurate results) did not

change, but the method (asking teachers instead of students) did.

Methodology includes the following concepts as they relate to a particular discipline or

field of inquiry:

1. a collection of theories, concepts or ideas;

2. comparative study of different approaches; and

3. Critique of the individual methods.

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RESEARCH PROCESSES:

Scientific Research:

Generally, research is understood to follow a certain structural process. Though step order

may vary depending on the subject matter and researcher, the following steps are usually part

of most formal research, both basic and applied:

Formation of the topic

Hypothesis

Conceptual definitions

Operational definitions

Gathering of data

Analysis of data

Test, revising of hypothesis

Conclusion, iteration if necessary

A common misunderstanding is that by this method a hypothesis can be proven or

tested. Generally a hypothesis is used to make predictions that can be tested by observing

the outcome of an experiment. If the outcome is inconsistent with the hypothesis, then the

hypothesis is rejected. However, if the outcome is consistent with the hypothesis, the

experiment is said to support the hypothesis. This careful language is used because

researchers recognize that alternative hypotheses may also be consistent with the

observations. In this sense, a hypothesis can never be proven, but rather only supported

by surviving rounds of scientific testing and, eventually, becoming widely thought of as

true (or better, predictive), but this is not the same as it having been proven. A useful

hypothesis allows prediction and within the accuracy of observation of the time, the

prediction will be verified. As the accuracy of observation improves with time, the

hypothesis may no longer provide an accurate prediction. In this case a new hypothesis

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will arise to challenge the old, and to the extent that the new hypothesis makes more

accurate predictions than the old, the new will supplant it.

HISTORICAL:

The historical method comprises the techniques and guidelines by which historians

use historical sources and other evidence to research and then to write history. There are

various history guidelines commonly used by historians in their work, under the headings of

external criticism, internal criticism, and synthesis. This includes higher criticism and textual

criticism. Though items may vary depending on the subject matter and researcher, the

following concepts are usually part of most formal historical research:

Identification of origin date

Evidence of localization

Recognition of authorship

Analysis of data

Identification of integrity

Attribution of credibility

Research Methods:

The goal of the research process is to produce new knowledge, which takes three main

forms (although, as previously discussed, the boundaries between them may be fuzzy):

Exploratory research, which structures and identifies new problems

Constructive research, which develops solutions to a problem

Empirical research, which tests the feasibility of a solution using empirical evidence

Research can also fall into two distinct types:

Primary research

Secondary research

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Primary Research:

Primary research also called field research involves the collection of data that does

not already exist. This can be through numerous forms, including questionnaires and

telephone interviews amongst others. This information may be used in such things as

questionnaires, magazines, and Interviews

The term is widely used in market research and competitive intelligence.

May be very expensive because many people need to be confronted.

By the time the research is complete it may be out of date.

People may have to be employed or avoid their primary duties for the duration of the

research.

People may not reply if emails or letters are used.

Secondary Research:

Secondary research involves the summary, collation and/or synthesis of existing

research rather than primary research, where data is collected from, for example, research

subjects or experiments.

The term is widely used in market research and in medical research. The principle

methodology in medical secondary research is the systematic review, commonly using meta-

analytic statistical techniques, although other methods of synthesis, like realist reviews and

meta-narrative reviews, have been developed in recent years.

Secondary research can come from either internal or external sources.

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PRIMARY DATA:

1. The primary data is collected to personal contact with SMSIL

2. The data is from the employee of Firm & to guided very well & full support of mangers.

SECONDARY DATA:

1. The secondary data is collected through web, magazines, journals & annual report of

the firm.

2. The secondary data is collected from the book or catalog of SMSIL.

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SMS INFRASTRUCTURE LIMITED BALANCE SHEET AS AT

MARCH 31st 2008

PARTICULARS SCHEDULE AS AT 31-03-2008 AS AT 31-03-2007Rs.'000 Rs. '000

SOURCES OF FUNDS:SHAREHOLDERS FUND:la) Share Capital 1 94,909.48 93,559.32b) Reserves & surplus 2 12,15,427.99 9,36,658.40

TOTAL 13,10,337.47 10,30,217.72BORROWED FUNDS:a) Secured loans 3 27,72,544.43 16,48,743.42

27,72,544.43 16,48,743.42DEFERRED TAX LIABILITY 27,995.00 24,090.50

TOTAL 41,10,876.90 27,03,051.64

APPLICATIONOF FUNDSFIXED ASSETS: 4a) Gross Bill 15,23,704.07 10,08,315.69b) Less Depreciation (4,59,842.57) (3,52,350.10)c) Net Block 10,63,861.50 6,55,965.59Capital WIP 6,832.84 -

TOTAL 10,70,694.34 6,55,965.59

INVESTMENTS 5 4,76,178.85 3,74,493.56

CURRENTASSETS LOANS AND ADVANCES 6

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a) Work In Progress 8,82,064.12 6,84,523.19b) Bills Receivable 11,36,138.42 6,67,799.20c) Cash & Bank Balances ' 4,77,629.16 4,80,942.35d) Loans& Advances 4,83,630.54 3,16,148.34

TOTAL 29,79,462.24 21,49,413.08Less:CURRENT LIABILITIES &PROVISIONS 7a] Current Liabilities 3,86,864.10 4,66,871.51b) Provisions 28,594.41 6,076.56

TOTAL 4,15,458.51 4,72,948.07NET CURRENT ASSETS 25,64,003.73 16,76,465.01

Significant Accounting Policies & Notes 14 _ _Forming part of the Accounts _ _

Cash Flow Statement 15

______________________

________________

TOTAL 41,10,876.92 27,06,924.16

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SMS INFRASTRUCTURE LIMITED BALANCE SHEET AS AT

MARCH 31st 2009:

PERTICULARS SCHEDULE AS AT 31-03-2009 AS AT 31-03-2008Rs. '000 Rs. '000

SOURCESOF FUNDS: SHAREHOLDERSFUND:a Share Capital 1 95,370.51 94,909.48b} Reserves& surplus 2 14,53,655.60 12,15,427.99

15,49,026.11 13,10,337.47BORROWED FUNDS:a} Secured Loans 27,43,435.03 27,72,544.43

27,43,435.03 27,72,544.43 DEFERRED TAX LIABILITY 25,466.27 27,995.00

TOTAL 43,17,927.41 41,10,876.90APPLICATION OF FUNDS 4 FIXEDASSETS:a) Gross Block 17,31,009.59 15,23,704.07b) Less Depreciation 6,17,007.86 4,59,842.57c) Net Block 11,14,001.73 10,63,861.50Capital WIP - 6,832.84TOTAL 11,14,001.74 10,70,694.34

INVESTMENTS: 5 5,08,297.15 4,76,178.85

CURRENT ASSETS LOANS AND ADVANCES: 6a) Work In Proaress 13,24,224.06 8,82,064.12b) Bills Receivable 16,73,201.18 11,36,138.42C) Cash&BankBalances' 4,08,066.41 4,77,629.16d) Loans & Advances 4,49,520.46 4,83,630.54

31


TOTAL 38,55,012.11 29,79,462.24Less:CURRENT LIABILITIES & PROVISIONS 7a] Current Liabilities 11,09,548.19 3,86,864.10b} Provisions 49,835.39 28,594.41

11,59,383.58 4,15,458.51

NET CURRENTASSETS 26,95,628.53 25,64,003.73

Significant Accounting Policies & Notes 14 _ _Forming part of the AccountsCash Flow Statement 15 _ _

_______________________

______________________

TOTAL 43,17,927.42 41,10,876.92

32


SMS INFRASTRUCTURE LIMITED BALANCE SHEET AS AT MARCH 31st 2010

sr.no. PERTICULARS SCHEDULE

AS AT 31.03.2011

AS AT 31.03.2010

1SOURCESOF FUNDS:

2 ShareHolder's Funds

Share Capital 1

953.71

953.71

Reserves&Surplus 2

22,375.34

14,536.56 23,329.05 15,490.27

3 LoanFunds 3

Secured Loans

28,453.40

27,434.36 28,453.40 27,434.36

4Deferred TaxLiability(Net)

181.85 254.60

Total 51,964.30 43,179.23

5APPLICATIONOF FUNDS

FixedAssets 4

Gross Block

19,253.17

17,310.10

33


Less:Depreciation

(7,996.36)

(6,170.08)

Net Block 11,256.81 11,140.02

6 Investments 5 12,134.22 5,182.08

7Current Assets, Loan land Advances 6

WorkIn Progress

11,783.96

13,242.24

Sundry Debtors15,653.40

16,732.01

Cash&BankBalances

4,615.91

4,080.66

Loans &Advances

8,563.67

4,396.11 40,616.94

38,451.02

8

Less: Current liabilities&Provisions 7

Current Liabilities

11,987.35

11,095.47

9 Provisions

56.32

498.35 12,043.67

11,593.82

10 Net Current Assets 28,573.27 26,857.20

TOTAL 51,964.30 43,179.30

34


FINANCIAL CORNER:

Stay up-to-date with the latest financial facts and figures, All Figures in INR Crore

Sr. No. Particulars 2007-2008 2008-2009 2009-2010

1 Turnover 447.19 596.86 812.81

2 Other Income 16.67 3.96 17.94

3 PBDIT 57.08 84.40 170.33

4 Interest 27.68 42.15 48.00

5 Depreciation 12.48 16.42 18.60

6 Tax 6.83 3.74 12.17

7 PAT 10.09 22.09 91.55

8 Paid up Share Capital 9.49 9.54 9.54

9 Reserves & Surplus 121.54 145.37 223.75

10 EPS (in Rs.) 10.63 23.16 96.00

35


FINANCIAL PERFORMANCE – CONSOLIDATED

36



Where,

EV= Enterprise Value

PAT= Profit after Taxes

37

2007-2008; Turnover; 4822

Turnover, 2008-09 7322

Turnover, 2009-2010, 11179

E/V, 2007-2008,

899

E/V,2008-09,

1173

E/V,2009-2010,

2127

PAT, 2007-08, 262

PAT,2008-09, 254

PAT, 2009-10,

995

f(x) = 588.0799536545 x + 185.695111794R² = 0.88047387830743

Turnover E/VLinear (E/V) PAT


Interpretation:

Above chart shows that turnover of the company is increase by year to year. Enterprise value is increase 899 to 2127 for the year 07-08 to 09-10.Also profit after tax is decrease next year but is increase in 09-10.

But when we compare the 3years performance then we easily see that current profit increase in current year as compare to last year.


Where,

ROA= Return On Assets

38

ROA,4% ROE,

3%

ROA, 10%

2007-2008; ROE; 17% ROE, 2008-09, 18%

ROE,2009-10, 70%

ROCE,, 5% ROCE,

4%

ROEC, 14%

f(x) = 0.16 x − 0.05R² = 0.702666648982276

ROA ROELinear (ROE) ROCE


ROE= Return On Equity

ROCE= Return On Capital Employed

Above calculation shows that ROA, ROCE, increase in 1st year & decrease in 2nd year, but in 3rd year its shows the higher change (increase) as compare to 1st& 2nd year. The ROE is increase year by year.

BALANCED SECTORIAL PERFORMANCE - COMPETITIVE & RISK MITIGATED PORTFOLIO

39


2007-2008 2008-2009 2009-2010

Urban Develop-ment

45.459224 47.96977 735.050671

From JV's*

0 951.508422 2355.32836

Enviro & Clean En-ergy

717.143677 867.176536 451.163737

Electrical 676.270347000001

578.648645 1541.480984

Mining 34.799828 245.323056 397.369357

Tolls 1267.355481 965.99368 1239.2269

Railways 49.339973 374.339431 971.468516999999

Irrigation 601.069535 1442.735257 1879.051643

Roads & O & M

1430.979836 1858.502534 1609.092191

1,000

3,000

5,000

7,000

9,000

11,000IN

R M

illio

n

The above chart shows that the projects of SMSIL (million) at every year.

STRONG ORDER BOOK (WORKS IN HAND)-LONG

SUSTAINED CASH INFLOWS

40

* Where stake of SMSIL is more than 51%Total 4,822

7,332 11,179


2007-2008 2008-2009 2009-2010

Others 987 992 319

Urban Development 0 0 160

Enviro & Clean Energy 1365 1762 1373

Electrical 802 1744 5009

Mining 985 7185 12395

Tolls 800 560 504

Railways 0 0 1383

Irrigation 3530 3744 14924

Roads & O & M 4740 4761 3659

2500

7500

12500

17500

22500

27500

32500

37500

INR

Mill

ion

The above chart shows the cash flow of the company’s major project, for the last three years.

CONCLUSION:

1) Conclusion of this project is to understand, what is Profit?

41

Total 13,209 20,748 39,726


2) The Profitability analysis is the very important in financial.

3) Profitability statement has calculated as end of financial year (31st March

or 31st December).

4) With the help of this project we have to understand the profitability

statement at easy way.

BLIBLIOGROPHY

Website Visited:

42


1. www.smsil.co.in

Book Referred:

2. Management Accounting (Bhagwati&Pillai)

43

http://www.smsil.co.in/

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