TERM PAPER OF

FINANCIAL MANAGEMENT

-: TOPIC:-

DLF COMPANY
SUBMITTED TO: - SUBMITTED BY: -
MISS SWATI GOYAL RAJNISH SINGH
LSB, LPU SECTION:-R1902
ROLL NO.: A11
REG.NO. 10901327

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 ACKNOWLEDGEMENT

I am thankful to MISS SWATI GOYAL for providing me the task of preparing

the term paper on DLF COMPANY. We at lovely in taking challenges and term
paper provided me the opportunity to tackle a practical challenge in the subject of
FINANCIAL MANAGEMENT. This term paper tested my patience at every step
of preparation but the courage provided by my teacher helped me to swim against
the tide and move against the wind.

I am also thankful to my friends and parents for providing me help at every step of
the preparation of the term paper.

RAJNISH SINGH

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 INDEX
INTRODUCTION
BACKGROUND
MANAGEMENT
CAPITAL STRUCTURE
CAPITAL STRUCTURE OF DLF COMPANY
LIQUIDITY POSITION
CURRENT RATIO

FINANCIAL CREDIBILITY

RATING OF DLF COMPNY

POSITION OF DLF COMPANY
CHANGE IN ITS SHARE PRICE OVER A YEAR
IPO ISSUES MADE BY COMPANY DURING LAST 5 YEARS
REFERENCE

ANNEXURE

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 INTRODUCTION

DLF Limited is India's largest real estate company in terms of revenues, earnings,
market capitalization and developable area. It has a 63-year track record of
sustained growth, customer satisfaction, and innovation. The company has
approximately 240 msf of completed development and 432 msf of planned
projects. While the company initially started as an NCR-focused real estate player,
over the years, it has expanded its development operations across the country and
has significant presence in almost all important cities in India. DLF is the only
company in India in the Consumer validated category from the real estate sector to
have been awarded “Super brand ranking”. It was also conferred the Best Global
Developer Award for 2009 by Euro money magazine at Euro money’s Fifth
Annual Real Estate Awards – the most prestigious awards in global real estate.
DLF is dedicated towards creating best quality products and aims to be trustworthy
as far as customers are concerned. It promises to create its products in accordance
with highest global standards. The company’s primary business is development of
residential, commercial and retail properties. It has a unique business model with
earnings arising from development and rentals. Its exposure across businesses,
segments and geographies, mitigates any down-cycles in the market.

DLF has been a trendsetter in contemporary urban development and housing. It

pioneered the ‘walk to work’ concept and is Founder and pioneer of "Grade A -
office leasing market" in India. It has become a preferred name with many IT &
ITES majors and leading Indian and International corporate giants. Its foray in the
retail segment is also commendable bringing about a paradigm shift in the industry
by redefining shopping, recreation and leisure experiences. One of the finest

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creations has been the DLF Emporio which is the first luxury mall in India. DLF
believes that the following are its primary competitive strengths:

 Brand name and reputation: DLF has a 63-year history of service excellence.
DLF retains internationally and nationally renowned architectural,
construction and consulting firms for its projects.

 Extensive land reserves: The Company recognizes that extensive land

reserves are the most important resource for a real estate developer.

 Scale of Operations: The Company’s size allows it to benefit from

economies of scale. DLF is able to purchase large plots of land from
multiple sellers, thus enabling it to aggregate land at lower prices.

 A tradition of innovation: DLF has a tradition of innovation in the Indian

real estate market. It is one of the first developers to anticipate the need for
townships on the outskirts of fast growing cities and is generally credited
with the growth of Gurgaon.

 Experienced and dedicated management: The Company has an experienced,

highly qualified and dedicated management team. Content provided by
DLF, Info Edge India Limited disclaims all warranties against infringement

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 BACKGROUND

Founded in 1946, DLF has developed some of the first residential colonies in Delhi
such as Krishna Nagar in East Delhi that was completed as early as in 1949. Since
then, the company has developed many well known urban colonies in Delhi,
including South Extension, Greater Kailash, Kailash Colony and Hauz Khas.
However, following the passage of the Delhi Development Act in 1957, the state
assumed control of real estate development activities in Delhi, which resulted in
restrictions on private real estate colony development. As a result, DLF
commenced acquiring land outside the areas controlled by
The Delhi Development Authority (DDA), particularly in Gurgaon. Since
inceptions, the company has developed of ~224m sq ft, including 22 urban
colonies as well as an integrated 3,000-acre township in Gurgaon by the name of
DLF City.

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

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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 High Court of 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 'DT Cinemas' at Gurgaon, Haryana
2003-04 Development of 'DLF Cyber city', 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 'Super brand' 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 and design services, environmental and infrastructural
facilities and also project management services.
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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 $2 bn issue. -The US-based Hilton Hotels Corporation has
declared that it will develop 10 hotel projects in the country in alliance with DLF
Ltd.
2008 -DLF inked a memorandum of understanding with the infrastructure
company Gayatri Projects Ltd (GPL) to develop roads, highways and bridges
across the country.
- DLF Ltd and the Tamil Nadu Industrial Development Corporation (TIDCO) have
forayed into an alliance agreement for a Rs 1,500-crore Information technology
Special Economic Zone.
-Commences operations of India's first Luxury Mall - Emporio Clinches the Title
Sponsorship of IPL
2009 -Foundation stone laid for DLF-IL&FS Metro In Gurgaon - India's first
public rail transport system to be built & run by a private Company - DLF
conferred "Best Global Developer Award, 2009" by Euro money - DLF sells DT
Cinemas, enters into a long term strategic alliance with PVR

MANAGEMENT

DLF has a strong management team with proven track record. The company is led
by K P Singh (Chairman) and his son Rajiv Singh (Vice-Chairman) - both having
decades of experience in the real estate industry with an extensive exposure to the
Indian property market in the past 40 years; the management has formed strong
business acumen and profound understanding of the local property market.
Commenting on the changing global environment and its impact on the Indian
economy, Mr. Rajiv Singh, Vice Chairman, DLF Limited said, "It appears that the
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downward impact of global recession and financial sector meltdown has been
contained. Indian economy has been resilient enough to withstand tough situations
and impact has been stabilised. Hopefully, with a new central government in place
soon, Indian economy would start moving northwards, bettering the growth
projections of 5 - 5.5% given by most economists. Real estate sector bore the brunt
of instability and loss of confidence in the local economic environment for last 6
months. This has, hopefully, stabilised and in line with our earlier projections, real
estate sector should start witnessing recovery from third quarter onwards. In the
interim, we would keep a close watch on the market conditions; continue to
explore launches of attractively priced residential apartments selectively across the
country and respond with appropriate product categories as per customer’s
demands. The focus on liquidity, cost containment and debt reduction remain
paramount in all management actions.

CAPITAL STRUCTURE

Capital structure is the relationship between cost of capital and value of the firm. It
consist balance sheet, profit and loss account of the company.

CAPITAL STRUCTURE THEORIES:

 Net operating income (NOI) approach.

 Traditional approach and Net income (NI) approach.

 MM hypothesis with and without corporate tax.

 Miller’s hypothesis with corporate and personal taxes.

 Trade-off theory: costs and benefits of leverage.

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Net Income (NI) Approach:-

According to NI approach both the cost of debt and the cost of equity are
independent of the capital structure; they remain constant regardless of how much
debt the firm uses. As a result, the overall cost of capital declines and the firm
value increases with debt. This approach has no basis in reality; the optimum
capital structure would be 100 per cent debt financing under NI approach.

Traditional Approach

The traditional approach argues that moderate degree of debt can lower the firm’s
overall cost of capital and thereby, increase the firm value. The initial increase in
the cost of equity is more than offset by the lower cost of debt. But as debt
increases, shareholders perceive higher risk and the cost of equity rise until a point
is reached at which the advantage of lower cost of debt is more than offset by more
expensive equity.

MM Approach without Tax: Proposition I

MM’s Proposition I states that the firm’s value is independent of its capital
structure. With personal leverage, shareholders can receive exactly the same return,
with the same risk, from a levered firm and an unlevered firm. Thus, they will sell
shares of the over-priced firm and buy shares of the under-priced firm until the two
values equate. This is called arbitrage.

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MM’s Proposition II

The cost of equity for a levered firm equals the constant overall cost of capital plus
a risk premium that equals the spread between the overall cost of capital and the
cost of debt multiplied by the firm’s debt-equity ratio. For financial leverage to be
irrelevant, the overall cost of capital must remain constant, regardless of the
amount of debt employed. This implies that the cost of equity must rise as financial
risk increases.

MM Hypothesis with Corporate Tax

Under current laws in most countries, debt has an important advantage over equity:
interest payments on debt are tax deductible, whereas dividend payments and
retained earnings are not. Investors in a levered firm receive in the aggregate the
unlevered cash flow plus an amount equal to the tax deduction on interest.
Capitalizing the first component of cash flow at the all-equity rate and the second
at the cost of debt shows that the value of the levered firm is equal to the value of
the unlevered firm plus the interest tax shield which is tax rate times the debt (if
the shield is fully usable).It is assumed that the firm will borrow the same amount
of debt in perpetuity and will always be able to use the tax shield. Also, it ignores
bankruptcy and agency costs.

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 CAPITAL STRUCTURE OF DLF COMPANY

Capital structure
From To Class Of Authorized Issued Paid Up Shares Paid Up Face Paid Up
Year Year Share Capital Capital (Nos) Value Capital

Equity
2008 2009 499.50 340.97 1704832680 2 340.97
Share

Equity
2007 2008 499.50 340.97 1704832680 2 340.97
Share

Equity
2006 2007 499.50 305.88 1529421080 2 305.88
Share

Equity
2005 2006 39.50 37.88 37767997 10 37.77
Share

Equity
2004 2005 4.50 3.62 3508007 10 3.51
Share

Equity
2003 2004 4.50 3.62 3508007 10 3.51
Share

Equity
2002 2003 4.50 3.62 3508007 10 3.51
Share

Equity
2001 2002 4.50 3.62 3508007 10 3.51
Share

Equity
1999 2001 4.50 3.62 3508007 10 3.51
Share

Equity
1997 1999 4.50 3.62 3508007 10 3.51
Share

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OVER ALL COST OF CAPITAL (2005) = EBIT/VALUE OF FIRM

= 97.48/3.51 = 27.77 (CRORE)

OVER ALL COST OF CAPITAL (2006) = EBIT/VALUE OF FIRM

= 348.12/37.77 = 9.22 (CRORE)

OVER ALL COST OF CAPITAL (2007) = EBIT/ VALUE OF FIRM

= 620.42/305.88 = 2.028 (CRORE)

OVER ALL COST OF CAPITAL (2008) = EBIT/VALUE OF FIRM

= 3,117.59/340.96 = 9.14 (CRORE)

OVER ALL COST OF CAPITAL (2009) = EBIT/VALUE OF FIRM

= 1,807.69/339.44 = 5.32(CRORE)

INTERPRETATION

Over all Cost of capital in 2005 is 27.77, in 2006 is 9.22, in 2007 is 2.028 in these
years over all cost of capital decreases then after in 2008 over all cost of capital is
9.14 in this year cost of capital increased by previous year but in 2009 again
decrease (5.32).

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 LIQUIDITY POSITION

Liquidity refers to the ability of a concern to meet its current obligations as and
when become due. The short-term obligations are met by realizing amounts from
current, floating or circulating assets. The current assets should either be liquid or
near liquidity.
To measure the liquidity of a firm, the following ratio can be calculated
1. Current ratio
2. Quick ratio or acid test ratio
3. Absolute liquid or absolute quick ratio

CURRENT RATIO

CURRENT RATIO (2005) = CURRENT ASSET/CURRENT LIABILITY

=1,710.39/1,345.82 = 1.27
INTERPRETATION
Current ratio indicates the liquidity of current assets or the ability of the business to
meet its maturing current liabilities. According to rule of thumb As a convention 2:
1 regard as satisfactory level i.e. current assets should be almost double than the
current liabilities. Current ratio should be in 2:1 ratio but the current ratio of DLF
Company is 1.27:1 it is less than required Ratio so company should focus to
increase it. In this year current liability is greater than current assets so company
should be decrease the current liability, it means focus the current liability.

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CURRENT RATIO (2006) = CURRENT ASSET/CURRENT LIABILITY

= 3,092.12/1,366.95 = 2.26
INTERPRETATION
Current ratio should be in 2:1so the current ratio of DLF Company is 2.26:1it is
approximate equal to required ratio. So company is focusing the current ratio.
Current ratio is increase by previous year.

CURRENT RATIO (2007) = CURRENT ASSET/CURRENT LIABILITY

= 9,442.25/3,782.93 = 2.49
INTERPRETATION
According to rule of thumb Current ratio should be in 2:1 so the current ratio of
DLF Company is 2.49:1 it is approximate equal to required ratio. So in year 2007
and 2008 current ratio of DLF Company is good.

CURRENT RATIO (2008) = CURRENT ASSET/CURRENT LIABILITY

= 18,345.94/3,786.38 = 4.84
INTERPRETATION
As we know, according to rule of thumb Current ratio should be in 2:1 but the
current ratio is 4.84:1 it is greater than required current ratio. It means current asset
is more than current liability.

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CURRENT RATIO (2009) = CURRENT ASSET/CURRENT LIABILITY

= 18,718.62/3,158.40 = 5.92
INTERPRETATION
As we know, according to rule of thumb Current ratio should be in 2:1 but the
current ratio is 5.92:1 it is greater than required current ratio. It means current asset
is more than current liability.

NOTE: - WE can not find Quick ratio and Absolute quick ratio of DLF Company
because there is not given information.

FINANCIAL CREDIBILITY

Real estate investors make 'the deal' with the seller, but they actually buy their
properties with either institutional lender financing or seller financing, or some
combination of both. When an investor makes a decision, it's the property that has
to qualify, not the buyer. But when it comes to financing the deal, it's usually not
that way. In most cases, a personal guaranty is involved. Lenders collect personal
financial information before making a decision about your loan. They want
information such as your personal balance sheet, income statement and a personal
credit profile in order to make a decision about the loan. The higher your debt to
personal income ratio, the more of a strain is being put on your personal credit.
Many investors step up and sign personal guarantees because they feel they have
no other choice. Yet if you use personal credit too often, it can actually hurt your
personal credit score.

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 FINANCIAL CREDIBILITY OF DLF COMPANY

FINANCIAL CREDIBILITY= INTERNAL FUND/EXTERNAL

FUND+INTERNAL FUND

IN 2005 FC = 383.93/1,017.03 = 0.37

IN 2006 FC = 644.91/3,658.85 = 0.16

IN 2007 FC = 652.8/7,422.10 = 0.08

IN 2008 FC = 11268.96/19,655.55 = 0.57

IN 2009 FC = 12374.83/21,989.79 = 0.56

INTERPRETATION
I have found financial credibility of DLF Company for 5 years. Financial
credibility is total internal funds divided by sum of total internal funds and external
funds. Financial credibility of DLF Company is 0.37, 0.16, 0.08, 0.57, and 0.56
respectably.

RATING OF DLF COMPNY

CARE has assigned a PRI+ (PR one plans) rating to the proposed CP/short term-
Term NCD issue of 1000 crore (out side the working capital limits) of DLF limited
(DLF) instruments with this rating would have strong capacity for timely payment
of short tern dept obligations and carry lowest risk.

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CARE assigns ‘+’ or ‘-‘signs to be shown after the assigned rating (where
necessary) to indicate the relative position within the band covered by the rating
symbol. The rating takes into account DLF’S improved financial flexibility
consequent to the recent debt management steps undertaken, significant realization
of debentures from DLF asset limited (DAL) during H1FY10, improved cash flow
resulting from existing project as will as success of recently launched projects and
comfortable gearing levels. The rating takes comfort from DLF’s stated intention
and efforts toward deleveraging itself by raising cash from sale of its non core
assets and disposal of some of the non-liquid assets.

POSITION OF DLF COMPANY

The rating reflects DLF‘s rich experience and leading position in the domestic real
estate sector, large land bank (which is largely paid for), pan-India presence and
diversified revenue stream derived from presence residential, commercial and
retail projects. We believe DLF, India’s largest real estate company, is the best
proxy for playing the promising domestic real estate opportunity. We are excited
about DLF’s dominant presence in emerging segments of premium apartments,
commercial offices and retail, which are highly profitable businesses with strong
entry barriers. Thus, DLF is relatively better placed to face the challenging macro
environment, which, in our opinion, will encourage lower risk premiums going
forward. In present time share of DLF Company is 43% in real estate.

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 CHANGE IN ITS SHARE PRICE OVER A YEAR

Real estate major DLF Ltd.'s shares debuted at Rs. 582, almost 11 percent above
the issue price of Rs. 525, on the Bombay Stock Exchange (BSE), July 5, making
promoter and chairman Kushal Pal Singh the fourth richest Indian. DLF is the first
real estate company to become one of the top 10 Indian companies by market
capitalization, and is ninth with a valuation of Rs. 96,285 crore ($24 billion), based
on July 5's closing price of Rs. 570. Last month, the company raised Rs. 9188
crore ($2.3 billion) in India's biggest-ever IPO. DLF, which received subscriptions
for about three times the shares on offer, last month, sold 10.27 percent of the
company, or 175 million shares, in an offering heavily bid by large funds, but
which just managed full subscription for the 52.2 million shares reserved for small
retail investors. Last year, DLF dropped its plans for what would have been India's
biggest IPO due to a sharp market fall in May and June. DLF, which built much of
the outsourcing hub of Gurgaon on the outskirts of Delhi, plans to spend nearly Rs.
7000 crore ($1.75 billion) to buy and develop property.

IPO ISSUES MADE BY COMPANY DURING LAST 5 YEARS

The subscription for the much hyped mega DLF IPO has ended. DLF IPO has
performed decently but below market expectations. DLF IPO has been subscribed
by 3.47 times (oversubscribed 2.47 times). Retail category has been subscribed by
0.975 times (undersubscribed by 0.025 times). Hence retail investors in the DLF
IPO will receive full allotment. Investors who used the part payment option to
apply in the DLF IPO might face a problem. These investors will be allotted partly
paid shares of DLF on the allotment date. Investors won’t be able to sell the partly
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paid shares on the listing date. After getting allotment, they will have to pay the
remaining money and then convert the partly paid shares to fully paid shares. This
process might take more than 1 week considering the size of the DLF IPO.
Considering the fact that the time between knowing the allotment status and listing
date of an IPO is very small, these investors would not be able to sell the DLF
shares that they have been allotted on the listing day of DLF. If DLF share prices
tank after listing then losses might be huge since full allotment will be made and
investors won’t be able to limit losses by booking losses on the listing date. So, it
might be a double whammy for small investors who used the part payment option.
Institutional investor category in the DLF IPO has been subscribed by 5.13 times
(oversubscribed 4.13 times) and the High Net worth Individual category has been
subscribed by 1.14 times (oversubscription ratio : 0.14 times). High Net worth
Individuals might get close to full allotment since the unsubscribed portion in the
retail and employee categories will be added to HNI category. I feel DLF
Universal Limited will have a decent listing and might provide investors with some
listing gains if the IPO issue price is fixed at the lower price band of Rs 500. I
recommend selling on listing since peer group companies especially Unitech is
available at a much lower valuation. The listing date of DLF is likely to be
somewhere in the second week of July. DLF will list both on the NSE and the BSE
and will be admitted into futures and options trading on listing. Investors who have
invested in the DLF IPO can expect to receive the IPO refund in the first week of
July through ECS. Allotment is likely to be made a few days before the listing
date. The allotment status of DLF IPO and the details for checking the allotment
status online will be posted here as soon as they are available.

The stage is set for the largest ever initial public offering (IPO) in India as DLF
Limited, the largest real estate company of the country, is entering the capital

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market to raise up to $2.39 billion (Rs.9,625 crore). The company will issue 175
million fresh equity shares having face value of $0.05 or 5 cents (Rs.2) each under
the IPO that will open on June 11 and close on June 14. It will be a 100% book
built issue, comprising 10.27% of the post issue paid up capital, at a price band of
$12.4-$13.6 (Rs.500-Rs.550). The issue proceeds would be deployed in meeting
construction cost, land acquisition and repayment of debt.

DLF IPO PRICE: DLF has fixed the issue price for the IPO. The DLF IPO Issue
price is Rs. 525. DLF seems to have chosen to play it safe by fixing the IPO issue
price exactly in between the higher end and lower end of its IPO price band. This
means investors might get some listing gains since Institutional investors were
willing to buy at the higher price band. The institutional investor category has been
subscribed by over 4 times A‚Â at the higher end of the price band and by over 5
times A‚Â at the lower end of the price band.

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 REFERENCE

SITES

http://www.dlf.in/dlf/wcm/connect/68585e0040ad6c53bcafbf23bba7f6d8/CARE.p
df?MOD=AJPERES

http://www.bullishindian.com/dlf-ipo-subscription-oversubscription-status-and-
details/342/

www.dlf.com

www.dlf.in

http://money.rediff.com/companies/dlf-ltd/13520062/capital-structures

http://www.ibtimes.co.in/articles/20070705/real-estate-major-dlf-share-price-
surges-on-opening-day-in-bse.htm

http://www.edelweiss.in/company/DLF-Ltd.html

NEWS PAPER

Business line

Times of India
MAGAZINE

Business world

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 ANNEXURE

BALANCE SHEET
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds
Owner's fund
Equity share capital 339.44 340.96 305.88 37.77 3.51
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 12,035.39 10,928.19 346.92 607.16 380.42
Loan funds
Secured loans 7,979.97 4,945.91 6,242.81 3,010.93 630.15
Unsecured loans 1,635.00 3,440.49 526.48 2.99 2.95
Total 21,989.79 19,655.55 7,422.10 3,658.85 1,017.03
Uses of funds
Fixed assets
Gross block 1,968.40 1,533.72 365.58 108.91 98.80
Less : revaluation reserve - - - - -
Less : accumulated depreciation 152.87 59.34 37.01 29.24 26.79
Net block 1,815.52 1,474.37 328.57 79.67 72.00
Capital work-in-progress 1,657.73 1,781.79 665.03 456.73 406.63
Investments 2,956.32 1,839.83 769.17 1,397.28 173.82
Net current assets
Current assets, loans & advances 18,718.62 18,345.94 9,442.25 3,092.12 1,710.39
Less : current liabilities & provisions 3,158.40 3,786.38 3,782.93 1,366.95 1,345.82
Total net current assets 15,560.22 14,559.56 5,659.32 1,725.17 364.57
Miscellaneous expenses not written - - - - -
Total 21,989.79 19,655.55 7,422.10 3,658.85 1,017.03
Notes:
Book value of unquoted investments 2,956.32 1,808.92 758.98 1,397.28 173.82
Market value of quoted investments - 30.92 10.19 - -
Contingent liabilities 4,875.99 3,047.92 3,818.81 1,643.36 502.91
Number of equity shares outstanding (Laces) 16972.09 17048.33 15294.21 377.68 35.08

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PROFIT LOSS ACCOUNT
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Income
Operating income 2,827.90 5,496.96 1,101.66 953.46 412.23
Expenses
Material consumed - 6.06 8.72 2.58 3.07
Manufacturing expenses 778.34 2,141.29 237.75 577.64 256.22
Personnel expenses 71.12 103.78 44.82 16.76 33.32
Selling expenses 59.28 45.70 63.42 26.74 23.69
Administrative expenses 156.39 128.16 88.51 23.13 28.81
Expenses capitalized - - - - -
Cost of sales 1,065.14 2,424.98 443.22 646.85 345.11
Operating profit 1,762.76 3,071.98 658.44 306.61 67.12
Other recurring income 1,006.72 560.74 327.67 191.56 66.83
Adjusted PBDIT 2,769.48 3,632.72 986.11 498.17 133.95
Financial expenses 809.86 447.65 356.25 146.15 33.07
Depreciation 114.08 25.68 9.44 3.90 3.40
Other write offs 37.86 41.79 - - -
Adjusted PBT 1,807.69 3,117.59 620.42 348.12 97.48
Tax charges 261.00 543.52 214.56 120.47 29.18
Adjusted PAT 1,546.68 2,574.07 405.86 227.65 68.30
Non recurring items -2.15 0.16 -0.19 -0.24 -0.62
Other non cash adjustments 33.05 0.36 1.24 1.11 0.02
Reported net profit 1,577.58 2,574.59 406.91 228.52 67.70
Earnings before appropriation 3,312.54 2,843.86 930.67 545.53 326.55
Equity dividend 339.44 681.93 340.97 1.55 1.40
Preference dividend - - - - -
Dividend tax 28.91 115.89 57.95 0.22 0.18
Retained earnings 2,944.19 2,046.03 531.76 543.76 324.96

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