FINANCIAL STATEMENT ANALYSIS

Submitted By

Name:- Mohammad Abrar Faiaz Sabab

Section:- Q6E03
Roll Number:- A07
Registration Number:- 11801100
Company Name:- Mahindra Lifespaces Developers Limited
Academic Task:- 03

Mittal School of Business

Lovely Professional University
Phagwara, Punjab
 Introduction

▪ Mahindra Lifespaces is one of India's leading real estate construction companies

established in 1994. The leader of the green housing movement, Mahindra Lifespaces is
one of the first real estate companies in India to contribute to the global Science (SBTi)
program. . They have projects across the country including Mumbai Metropolitan
Region, Pune, Nagpur, Ahmedabad, Delhi NCR, Jaipur, Hyderabad, Chennai and
Bengaluru.They have completed 1.54 sq m. (16.55 million sq. Ft.) Of residential projects
with 0.81 million sq. M. M. (8,70 sq. Ft.) Of ongoing residential projects. Mahindra
Lifespaces is ranked 17th among India's Greatest Jobs Market 2019, by the Greater To
Work Institute. The company has contributed to changing the status of Indian cities
through the development of its homes under 'Mahindra Lifespaces' and 'Happinest'
brands; and its associated cities and industrial groups under the name of 'Mahindra World
City' and the origins of 'Mahindra World City' brands.

Page 2 of 5
 Common Size Balance Sheet

Balance Sheet of MLDL (in March March Percentage Percentage

Rs. Cr.) '19 '18 2019 2018
Sources Of Funds
Total Share Capital 51.35 51.33 2.744741695 2.600712371
Equity Share Capital 51.35 51.33 2.744741695 2.600712371
Reserves 1,699.96 1,754.31 90.8656493 88.88477927
Networth 1,751.31 1,805.64 93.610391 91.48549164
Secured Loans 119.54 168.05 6.389609001 8.514508357
Unsecured Loans 0 0 0 0
Total Debt 119.54 168.05 6.389609001 8.514508357
Total Liabilities 1,870.85 1,973.69 100 100
Application Of Funds
Gross Block 45.45 46.85 2.429377021 2.37372637
Less: Accum. Depreciation 17.71 18.54 0.946628538 0.939357245
Net Block 27.74 28.31 1.482748483 1.434369126
Capital Work in Progress 9.81 9.15 0.524360585 0.46359864
Investments 650.68 850.92 34.77991287 43.11315353
Inventories 997.79 738.76 53.33351151 37.43039687
Sundry Debtors 112.87 118.48 6.033086565 6.002969058
Cash and Bank Balance 216.89 85.28 11.59312612 4.320840659
Total Current Assets 1,327.55 942.52 70.95972419 47.75420659
Loans and Advances 410.23 673.37 21.92746613 34.11731326
Total CA, Loans & Advances 1,737.78 1,615.89 92.88719031 81.87151984
Current Liabilities 543.42 518.72 29.04669001 26.28173624
Provisions 11.73 11.87 0.626987733 0.601411569
Total CL & Provisions 555.15 530.59 29.67367774 26.88314781
Net Current Assets 1,182.63 1,085.30 63.21351257 54.98837203
Total Assets 1,870.86 1,973.68 100.0005345 99.99949333
Contingent Liabilities 78.72 77.74 4.207713072 3.938815113
Book Value (Rs) 341.06 351.78 18.23021621 17.82346772

Page 3 of 5
Short Term Solvency Position Analysis:-
Business’s short-term solvency — shows its capability to pay its liabilities that come due in the
near future (up to one year).
Items March '19 March '18 Percentage 2019 Percentage 2018
Current Assets 1,182.63 1,085.30 63.21351257 54.98837203
Current
543.42 518.72 29.04669001 26.28173624
Liabilities

▪ Here we can see that its current assets were 1182.63 for the year 2019 and 1085.30 for
the year 2018 which has 54% in 2018 it has gone increased in 2019 which was 63% it has
increased by 9% which means that there current assets has increased which is a good sign
and current liability 29% for the year 2019 and 36% for the 2018 it has increased by 3%
which is not a good sign which indicates they are on a wrong path for there company’s
growth. There capability to pay its liabilities has come high in the near future (up to one
year). It shows a rough indicator of whether cash on hand plus the cash to be collected
from accounts receivable and from selling inventory will be enough to pay off the
liabilities that will come due in the next period . Its clear that the company has to work
upon there policy to shift there current status which is good as you can see above and
also they need to maintaining a good short term solvency for there daily expenses etc and
there Mahindra Lifespace has maintained a good records which they need to work upon
it to do a better job.

Long Term Solvency Position Analysis:-

Items March '19 March '18 Percentage 2019 Percentage 2018
Total Non-
Current 3.85 5.44 0.15869679 0.217228
Liabilities
Total Non-
737.03 725.05 30.38033644 28.95243
Current Assets

• Here we can see that there long term liabilities in 2019 is 3.85 and in 2018 it was 5.44 so we can
see it has decreased in 2019 which means that they dont need more funds right now because it
has declined So it’s a good sign for the company but they need to work on it although they are not
in the danger zone but could be better and more effective for the company. Their long term assets
were also increased from 2018 which it was 725.05 and it has gone up in 2019 became 737.03 so
we can see that there assets have also grown up which is a good sign for them. To be frank
Mahindra Lifespaces is in good state their asset are more than liability which can help them to
sustain free cash flow and its track record of staying on top of its total liabilities make
comfortable with its debt levels. But at least it’s pretty decent at growing is very good for the
company. Given Mahindra Lifespaces has a strong balance sheet is profitable and pays a
dividend, it would be good to know how fast its dividends are growing .

Page 4 of 5
Receivable Management:-
Item March '19 March '18 Percentage 2019 Percentage 2018
Total Debt 119.54 168.05 6.389609001 8.514508357

▪ Here we can see that the total debt has decreased form 168.05 in 2018 to 119.54 in 2019
which has gone down by 48.51cr.Which means that they have recover some of there
debts which is a good sign. They need to tight up there policy to recover there money . In
current situation they are doing great about there accounts receivable policy .Mahindra
Lifespace would probably need a slight re-capitalization if its creditors were to demand
repayment. On a slightly more positive note, The balance sheet is clearly the area to focus
on when you are analysing debt. But it is future earnings, more than anything, that will
determine Mahindra’s ability to maintain a healthy balance sheet going forward. So if
they focus on the future they can do better.

Corporate Social Responsbility:-

The Company’s guiding principle for CSR is to build its relationship with stakeholders and the
community at large and contribute to their long term social good and welfare.They have taken
some initiatives for their CSR Which are,
▪ Eradicating hunger, poverty and malnutrition, promoting preventive healthcare and
sanitation and making available safe drinking water
▪ Promoting education, including special education and employment enhancing vocation
skills especially among children, women, elderly, and the differently abled and livelihood
enhancement projects
▪ Training to promoter rural sports, nationally recognised sports, Paralympics sports and
Olympic sports
▪ Contribution to the Prime Minister’s National Relief Fund or any other fund setup by the
Central Government for socio-economic development and relief and welfare
▪ Rural development projects, etc
The Company had committed CSR expenditure of ` 289.77 Lakh for the financial year 2018-19,
which included an unspent amount of ` 97.20 Lakh pertaining to financial year 2017-18. As
against the committed CSR expenditure of ` 289.77 Lakh, the Company has spent ` 291.21 Lakh
during the financial year 2018-19.

Page 5 of 5