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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.
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
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.
Construction portfolio strengthened 1986 - 1988: 2006: Started owning mines in its own name Best Structure Award for Twin Tube Tunnel and Viaduct on KatrajGhat Bypass Road 2007-2008: 2009: 2010: SMS's Mumbai Bio-Medical Waste portfolio becomes biggest in Asia Worlds first largest plasma gasification Waste-to-Energy plant commissioned Awarded Coal Mine with CMDC Started coal export from Indonesia Won largest Uranium Mining project from UCIL Won First Hydro project and made entry into Clean Energy Enter into Urban development Started countrys first Road BOT project with NHAI Added trading of Heavy Machinery spare parts 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)
SMS Infrastructure Ltd. is a company with good track record of Quality & Technical engineering capability since 1964. We are Central Indias 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
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:
Roads
Irrigation
Railways
Tolls
Roads O&M
Mining
Electrical
Urban Development
Others
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.
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.
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.
BOARD OF DIRECTORS:
The company is managed by experienced and dynamic persons having vast knowledge in the field of infrastructure and mining.
Abhay H. Sancheti Ajay S. Sancheti Anand S. Sancheti Anil H. Sancheti DilipB.Surana Ajay Lakhotiya Hiralal R. Patel Naresh N. Pugalia Anil Rathi
Chairman Vice Chairman & Managing Director Joint Managing Director Director (Technical) Director (Technical) Director Independent Director Independent Director Independent Director
THE MANAGEMENT:
HemantLodha
Senior Vice President - Enviro& Clean Energy Vice President - Roads, Railway, Irrigation Vice President - Mining Vice President - Roads, Irrigation Associate Vice President Commercial Associate Vice President - Roads O&M, Tolls General Manager Electrical General Manager - Finance
SuhasNemade
DattatrayKinage
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. 10 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.
Real Estate
San Commercials Private Limited MPA Infrastructure Private Limited BSS Associates Gorakshan Land Development Private Limited
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
Toll Management
Hospitality
Fountain Sizzlers and Bistro a unit of Veet Rag Developers Pvt. Ltd
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.
12 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.
ENVIRONMENT
Hazardous Waste Management Bio-Medical Waste Management Waste Water Management Municipal Waste Management
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
TRANSPORTATION TOLL
Construction of Toll Plazas Collection of Toll/User Fees 13 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.
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
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
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.
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.
16 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.
Cost of environmental monitoring is less at common facility 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
Competitive advantage in international markets vis--vis grading of the products on environmental consideration.
The company has developed three state of the art Common Biomedical Waste Treatment and disposal facilities at Mumbai, Delhi &Nashik.
Plants:
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.
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
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.
OBJECTIVES:
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
HYPOTHESIS:
2. The expectations are quite high regarding the overall performance of the firm.
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.
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.
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 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
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.
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 metaanalytic 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.
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.
PARTICULARS SOURCES OF FUNDS: SHAREHOLDERS FUND: la) Share Capital b) Reserves & surplus TOTAL BORROWED FUNDS: a) Secured loans DEFERRED TAX LIABILITY TOTAL APPLICATIONOF FUNDS FIXED ASSETS: a) Gross Bill b) Less Depreciation c) Net Block Capital WIP TOTAL INVESTMENTS CURRENTASSETS LOANS AND ADVANCES a) Work In Progress b) Bills Receivable c) Cash & Bank Balances ' d) Loans& Advances TOTAL Less: CURRENT LIABILITIES
SCHEDULE
AS AT 31-03-2008 Rs.'000
1 2
4 15,23,704.07 (4,59,842.57) 10,63,861.50 6,832.84 10,70,694.34 5 4,76,178.85 10,08,315.69 (3,52,350.10) 6,55,965.59 6,55,965.59 3,74,493.56
6 8,82,064.12 11,36,138.42 4,77,629.16 4,83,630.54 29,79,462.24 6,84,523.19 6,67,799.20 4,80,942.35 3,16,148.34 21,49,413.08
&PROVISIONS a] Current Liabilities b) Provisions TOTAL NET CURRENT ASSETS Significant Accounting Policies & Notes Forming part of the Accounts Cash Flow Statement TOTAL 3,86,864.10 28,594.41 4,15,458.51 25,64,003.73 4,66,871.51 6,076.56 4,72,948.07 16,76,465.01
14
_ _
_ _
15
PERTICULARS SOURCESOF FUNDS: SHAREHOLDERSFUND: a Share Capital b} Reserves& surplus BORROWED FUNDS: a} Secured Loans DEFERRED TAX LIABILITY TOTAL APPLICATION OF FUNDS FIXEDASSETS: a) Gross Block b) Less Depreciation c) Net Block Capital WIP TOTAL INVESTMENTS: CURRENT ASSETS LOANS AND ADVANCES: a) Work In Proaress b) Bills Receivable C) Cash&BankBalances' d) Loans & Advances TOTAL Less: CURRENT LIABILITIES & PROVISIONS a] Current Liabilities b} Provisions
SCHEDULE
1 2
4 17,31,009.59 6,17,007.86 11,14,001.73 11,14,001.74 5 5,08,297.15 15,23,704.07 4,59,842.57 10,63,861.50 6,832.84 10,70,694.34 4,76,178.85
6 13,24,224.06 16,73,201.18 4,08,066.41 4,49,520.46 38,55,012.11 8,82,064.12 11,36,138.42 4,77,629.16 4,83,630.54 29,79,462.24
26,95,628.53
25,64,003.73
14
15
_ _______________________ 43,17,927.42
_ ______________________ 41,10,876.92
TOTAL
Investments
12,134.22
5,182.08
6 11,783.96
WorkIn Progress
13,242.24
15,653.40 Sundry Debtors 4,615.91 Cash&BankBalances 8,563.67 Loans &Advances 40,616.94 38,451.02 8 Less: Current liabilities&Provisions 7 11,987.35 Current Liabilities 56.32 9 Provisions 12,043.67 11,593.82 10 Net Current Assets TOTAL 28,573.27 51,964.30 26,857.20 43,179.30 498.35 11,095.47 4,396.11 4,080.66 16,732.01
FINANCIAL CORNER:
Stay up-to-date with the latest financial facts and figures, All Figures in INR Crore Particulars Turnover Other Income PBDIT Interest Depreciation Tax PAT Paid up Share Capital Reserves & Surplus EPS (in Rs.) 2007-2008 447.19 16.67 57.08 27.68 12.48 6.83 10.09 9.49 121.54 10.63 2008-2009 596.86 3.96 84.40 42.15 16.42 3.74 22.09 9.54 145.37 23.16 2009-2010 812.81 17.94 170.33 48.00 18.60 12.17 91.55 9.54 223.75 96.00
Sr. No. 1 2 3 4 5 6 7 8 9 10
Net Annual Sales EBITDA Depreciation Interest PBT TAX PAT Total Assets FCF Total no of employees Debt Equity Reserves Capital Employed Cash Equivalents Enterprise Value EPS (in Rs.) Return on Assets Return On Equity Return on Capital Employed Debt/Equity Ratio EV/EBITDA EV/Sales
Turnover
E/V
PAT
Where, EV= Enterprise Value PAT= Profit after Taxes 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 0910.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.
ROA
ROE
ROCE
ROE,2009-10, 70%
ROEC , 14%
ROA ,4%
ROCE,, 5%
ROE, 3%
ROCE, 4%
Where, ROA= Return On Assets 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.
Railways Tolls Mining Electrical Enviro & Clean Energy From JV's* Urban Development
Total
4,822
7,332
11,179
40000 35000 30000 INR Million 25000 20000 15000 10000 5000 0 Roads & O & M Irrigation Railways Tolls Mining Electrical Enviro & Clean Energy Urban Development Others 2007-2008 4,740 3,530 0 800 985 802 1,365 0 987 2008-2009 4,761 3,744 0 560 7,185 1,744 1,762 0 992 2009-2010 3,659 14,924 1,383 504 12,395 5,009 1,373 160 319
Total
13,209
20,748
39,726
The above chart shows the cash flow of the companys major project, for the last three years.
CONCLUSION:
1) Conclusion of this project is to understand, what is Profit? 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:
1. www.smsil.co.in
Book Referred: