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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. 2. 3. Economic Profit Accounting Profit Social Profit

1 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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

2 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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.

Late Shri Shaktikumar M. Sancheti Founder of the SMS Group

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.

3 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

Brief Journey Of SMSIL:


1963 - 1985: Founded by late Mr. Shantikumar M Sancheti.

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

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)

4 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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 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

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:

5 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

Roads

Irrigation

Railways

Tolls

Roads O&M

Mining

Electrical

Enviro & Clean Energy

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.

6 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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.

7 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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.

8 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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

9 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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

Kaserneni R. Rao Rajiv B. Charde Sandip J. Dhodapkar

DattatrayKinage

Srikant D. Dahake S.K.Panigrahi

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. 10 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

Bhatgaon Extension Mines Pvt. Ltd.

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

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

11 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

Manufacturing and Trading


Rishik Motors Private Limited Sanbro Spares Private Limited

Finance and Consultancy

San Finance Corporation

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.

Finance Project Report on Profitability Analysis of SMSIL

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

220 /440KV Transmission Lines. Hydro Power Projects.

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.

Finance Project Report on Profitability Analysis of SMSIL

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

14 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

Projects of SMS EnvocareLdt.


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

15 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

Life of the project:


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.
16 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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

environmental status of the region

Competitive advantage in international markets vis--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

17 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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.

18 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

(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.

19 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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.

20 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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

21 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

HYPOTHESIS:

1. The firm was profited since last 3 year.

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

22 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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.

23 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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.

24 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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 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.

25 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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

26 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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 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.

27 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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.

28 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

SMS INFRASTRUCTURE LIMITED BALANCE SHEET AS AT MARCH 31st 2008

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

AS AT 31-03-2007 Rs. '000

1 2

94,909.48 12,15,427.99 13,10,337.47 27,72,544.43 27,72,544.43 27,995.00 41,10,876.90

93,559.32 9,36,658.40 10,30,217.72 16,48,743.42 16,48,743.42 24,090.50 27,03,051.64

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

29 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

&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

______________________ ________________ 41,10,876.92 27,06,924.16

30 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

SMS INFRASTRUCTURE LIMITED BALANCE SHEET AS AT MARCH 31st 2009:

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

AS AT 31-03-2009 Rs. '000

AS AT 31-03-2008 Rs. '000

1 2

95,370.51 14,53,655.60 15,49,026.11 27,43,435.03 27,43,435.03 25,466.27 43,17,927.41

94,909.48 12,15,427.99 13,10,337.47 27,72,544.43 27,72,544.43 27,995.00 41,10,876.90

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

7 11,09,548.19 49,835.39 11,59,383.58 3,86,864.10 28,594.41 4,15,458.51

NET CURRENTASSETS Significant Accounting Policies & Notes

26,95,628.53

25,64,003.73

14

31 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

Forming part of the Accounts Cash Flow Statement

15

_ _______________________ 43,17,927.42

_ ______________________ 41,10,876.92

TOTAL

32 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

SMS INFRASTRUCTURE LIMITED BALANCE SHEET AS AT MARCH 31st 2010


sr.no. PERTICULARS SOURCESOF 1 FUNDS: 2 ShareHolder's Funds 953.71 Share Capital Reserves &Surplus 1 22,375.34 2 23,329.05 3 LoanFunds 3 28,453.40 Secured Loans 28,453.40 4 Deferred TaxLiability(Net) Total APPLICATIONOF FUNDS FixedAssets 4 19,253.17 Gross Block (7,996.36) Less:Depreciation Net Block 11,256.81 (6,170.08) 11,140.02 17,310.10 181.85 51,964.30 27,434.36 27,434.36 254.60 43,179.23 14,536.56 15,490.27 953.71 SCHEDULE AS AT 31.03.2011 AS AT 31.03.2010

Investments

12,134.22

5,182.08

Current Assets, Loan land Advances

6 11,783.96

WorkIn Progress

13,242.24

33 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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

34 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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

35 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

FINANCIAL PERFORMANCE CONSOLIDATED


2007-2008 4822.43 898.87 182.67 381.11 335.09 73.41 261.69 6845.46 444.36 1539 4112.95 94.91 1484.18 5692.04 499.39 5192.65 27.57 3.82% 16.57% 4.60% 2.60 5.78 1.08 2008-2009 7332.20 1173.40 253.45 612.74 307.21 60.03 253.92 8168.04 507.37 1625 4666.12 95.37 1278.18 6039.67 435.34 5604.32 26.62 3.11% 18.49% 4.20% 3.40 4.78 0.76 2009-2010* 11179.23 2127.21 331.10 695.17 1100.93 105.64 995.29 9580.84 1326.39 1797 5624.95 368.37 1053.75 7047.06 571.88 6475.19 104.36 10.39% 69.99% 14.12% 3.96 3.04 0.58

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

36 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

FINANCIAL PERFORMANCE CONSOLIDATED

Turnover

E/V

PAT

Turnover, 20092010, 11179

Turnover, 2008-09 7322 Turnover, 20072008, 4822

y = 588.08x + 185.7 R = 0.8805


E/V, 2007-2008, 899 PAT, 2007-08, 262 E/V ,2008-09, 1173 PAT,2008-09, 254

E/V ,2009-2010, 2127 PAT, 2009-10, 995

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.

37 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

FINANCIAL PERFORMANCE CONSOLIDATED

ROA

ROE

ROCE
ROE,2009-10, 70%

y = 0.1586x - 0.0524 R = 0.7027

ROE, 2007-2008, 17%

ROE, 2008-09, 18% ROA, 10%

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.

38 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

BALANCED SECTORIAL PERFORMANCE - COMPETITIVE & RISK MITIGATED PORTFOLIO

12,000 10,000 INR Million 8,000 6,000 4,000 2,000 0

Roads & O & M Irrigation

2007-2008 1,431 601 49

2008-2009 1,859 1,443 374

2009-2010 1,609 1,879 971

Railways Tolls Mining Electrical Enviro & Clean Energy From JV's* Urban Development

1,267 35 676 717 0 45

966 245 579 867 952 48

1,239 397 1,541 451 2,355 735

Total

4,822

7,332

11,179

* Where stake of SMSIL is more than 51%


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

39 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

STRONG ORDER BOOK (WORKS IN HAND)-LONG SUSTAINED CASH INFLOWS

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.

40 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

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.

41 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

Finance Project Report on Profitability Analysis of SMSIL

BLIBLIOGROPHY

Website Visited:
1. www.smsil.co.in

Book Referred:

2. Management Accounting (Bhagwati&Pillai)

42 BY, YAMINI C. DHAKATE. (M.B.A.2011-12) D.M.S. NABIRA MAHAVIDYALAYA NAGPUR.

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