Real Estate Investment Analysis

Report on
Analysis of the
Capital Structure of a Company

Name of the company Nagarjuna Construction Company Limited (NCC Ltd)

Place of origin Hyderabad
Year of Annual Reports 2018-19
Sector Construction, Real estate and Infrastructure

By:
Name: Varun CH
Course: PGDM Real Estate Management
SAP ID: 80651019004
Assets (Rs. in crores) % in TA
Total Assets 14,660.37
Current Assets 11,589.78 79.06%
Cash & Cash Equivalents 219.43 1.50%
Bank balances other than above 142.28 0.97%
Inventories 1,425.41 9.72%
Trade Recievables 3,428.68 23.39%
Assest Classified as held for Sale 72.70 0.50%
Other Current Assets 6,301.28 42.98%
Non - Current Assets 3,070.59 20.94%
Investments 378.37 2.58%
Trade Recievables 104.59 0.71%
Other Non-Current Assets 2,587.63 17.65%

Liabilities (Rs. in crores) % in TL

Total Liabilities 14,660.37
Equity 4,872.47 33.24%
Equity Share Capital 120.13 0.82%
Current Liabilities 8,985.14 61.29%
Borrowings 1,873.59 12.78%
Trade Payables 4515.01 30.80%
Other Current Liabilities 2,596.54 17.71%
Non - Current Liabilities 802.76 5.48%
Borrowings 488.43 3.33%
Trade Payables 108.45 0.74%
Other Current Liabilities 205.88 1.40%
Borrowings (Rs. in crores) Interest Rate
Non-Current Borrowings
Debentures
Secured - at amortised cost
10.90% Redeemable, Non-Convertible Debentures 45.60 10.90%
11.50 % Redeemable, Non-Convertible Debentures 0 11.50%
11.50 % Redeemable, Non-Convertible Debentures 65.2 11.50%
0.01 % Optionally Convertible Debentures 5.00 0.01%
Term Loans
Secured - at amortised cost
From Banks and Financial Institutions 233.94 6.5% to 10.5%
From Other Parties 88.01 8.75% to 11%
Unsecured - at amortised cost
From Other Parties 46 8.99% to 9.52%
Vehicle Loans
Secured - at amortised cost
From Bank 2.03 7.78% to 10%
From Others 2.65 7.78% to 10%
Total 488.43
Current Borrowings
Loans repayable on demand
Secured Loans - Banks
Working Capital Demand Loan 840.10 8.75% to 12.70%
Cash Credits and Overdrafts 797.49 8.75% to 12.70%
From Others 55.00 10.75%
Unsecured Loans
From Others 181.00 12%
Total 1873.59
Capital Structure:

Debt Rs. 2362.02 Crores

Equity Rs. 4872.47 Crores
Debt to Equity Ratio 0.485
Long-term Debt to Equity Ratio 0.3845
Short-term Debt to Equity Ratio 0.1002
Debt Ratio 0.161

• Although the company has low Debt-to-Equity Ratio, most of its debt
comes from short term borrowings.

• Presently, these are obtained at a higher interest rate than long term
borrowings. In future, they may not able to get these interest rates and
may have to go for higher options which decreases the profits.

• Advances from customers: Rs. 1815.42 Crores