COMMON SIZE BALANCE SHEET

  2018   2019
PARTICULARS AMOUNT % CHANGE AMOUNT % CHANGE
EQUITY AND LIABILITY:        
SHARE CAPITAL 1119.86 4.1 1119.86 4.2
RESERVES AND SURPLUS 14064.93 51.9 19064.13 72
SECURED LOAN 11895.64 43.9 6180.57 23.3
UNSECURED LOAN 0 0 22.54 0.08
TOTAL LIABILITES 27080.42 100   26458.79 100
         
ASSETS:        
GROSS BLOCK 4020.99 14.8 1820.29 6.8
LESS: ACC. DEPRECIATION 79.41 0.3 108.03 0.4
NET BLOCK 3941.57 14.5 1712.26 6.4
CAPITAL WORK IN PROGRESS 15.17 0.05 18.8 0.07
INVESTMENTS 10200.92 37.6 9627.79 36.3
INVENTORIES 9731.64 35.9 11357.26 42.9
SUNDRY DEBTORS 404.91 1.5 170.8 0.64
CASH AND BANK 1008.85 3.7 3612.83 13.6
LOANS AND ADVANCES 7644.37 28.2 10655.63 40.2
TOTAL CURRENT ASSESTS 18789.77 69.38   25796.52 97.49
CURRENT LIABILITES 5826.01 21.5 10651.55 40.2
PROVISIONS 41.01 0.15 45.04 0.1
TOTAL CURRENT LIABLITIES 5867.02 21.6 10696.59 40.4
NET CURRENT ASSESTS 12922.75 47.7   15099.93 57.06
TOTAL ASSETS 27080.42 100   26458.79 100

INTERPRETATION:
 By looking at the table we could analyze that DLF had more assets during
the year 2018. Also, for instance there is a reduction in investments from
2018 to 2019 while the current liabilities have witnessed an uptrend during
the 1-year period.
 There has also been a significant fall in Long term debt (secured loan) to
23.3 in 2019. To be mainly noticed that the share capital has remained
same throughout which implies that the market value is still on demand.
 COMMON SIZE INCOME STATEMENT
  2018   2019
PARTICULARS AMOUNT % NET SALES AMOUNT % NET SALES
NET SALES 3055.9 100.0 3295.39 100
OTHER INCOME 747.8854 24.5   413.3759 12.5
TOTAL INCOME 3803.79 124.5   3708.77 112.5
           
MANUFACTURING EXPENSES 1492.78 48.8   1602 48.6
PERSONAL EXPENSES 143.88 4.7   197.71 6.0
SELLING EXPENSES 43.84 1.4   48.12 1.5
ADMINISTRATIVE EXPENSES 301.87 9.9   230.49 7.0
TOTAL EXPENDITURE 1982.37 64.9   2078.32 63.1
OPERATING PROFIT 1073.53 35.1   1217.07 36.9
EBITDA 1821.42 59.6 1630.44 49.5
LESS: DEPRECIATION 131.82 4.3 124.86 3.8
EIBIT 1689.6 55.3 1505.58 45.7
LESS: INTEREST 1023.49 33.5 739.94 22.5
EBT 739.94 24.2 765.64 23.2
LESS: TAX 180.25 5.9 78.06 2.4
PROFIT AFTER TAX 485.86 15.9   687.58 20.9

INTERPRETATION:
 We have analyzed the income statement figures and looking at the table
above we could see that company net sales have grown over time and the
gross margin has eventually increased.
 The total expenditure has also decreased (64.9% to 63.1%) which is a good
sign for company as they have carried out many cost affective techniques
thereby reducing administrative expenses and rising selling expenses.
Earnings before tax has moderately reduced from 24.2% in 2018 to 23.2%
in 2019.
 This caused the total profit to increase to a large extent and have gained an
additional 5% increase in their net sales. The company should try to focus
 on personal expenses as they have spent more on it and try to reduce it in
coming years.

COMPARITIVE BALANCE SHEET

PARTICULARS 2018 2019 ABSOLUTE CHANGE % CHANGE
EQUITY AND LIABILITY:        
SHARE CAPITAL 1119.86 1119.86 0 0.0
RESERVES AND SURPLUS 14064.93 19064.13 4999.2 35.5
SECURED LOAN 11895.64 6180.57 -5715.07 -48.0
UNSECURED LOAN 0 22.54 22.54 0.0
TOTAL LIABILITES 27080.42 26458.79 -621.63 -2.3
         
ASSETS:        
GROSS BLOCK 4020.99 1820.29 2200.7 54.7
LESS: ACC. DEPRECIATION 79.41 108.03 28.62 36.0
NET BLOCK 3941.57 1712.26 -2229.31 -56.6
CAPITAL WORK IN PROGRESS 15.17 18.8 3.63 23.9
INVESTMENTS 10200.92 9627.79 -573.13 -5.6
INVENTORIES 9731.64 11357.26 1625.62 16.7
SUNDRY DEBTORS 404.91 170.8 -234.11 -57.8
CASH AND BANK 1008.85 3612.83 2603.98 258.1
LOANS AND ADVANCES 7644.37 10655.63 3011.26 39.4
TOTAL CURRENT ASSESTS 18789.77 25796.52 7006.75 37.3
CURRENT LIABILITES 5826.01 10651.55 4825.54 82.8
PROVISIONS 41.01 45.04 4.03 9.8
TOTAL CURRENT LIABLITIES 5867.02 10696.59 4829.57 82.3
NET CURRENT ASSESTS 12922.75 15099.93 2177.18 16.8
TOTAL ASSETS 27080.42 26458.79 -621.63 -2.3

INTERPRETATION:
 As we can see in the comparative balance sheet of DLF Ltd, the total
current assets have increased by Rs. 25796 crores in the year 2019 over
2018.
 But at the same time their total current liabilities have also increased by
Rs. 10696 crores. Now such changes would be having a slight negative
impact on the liquidity position of company as both total current assets
(37.3%) and total current liabilities (82.3) have increased.
  Secondly the cash and bank balances has increased by 258.1% which
indicates a positive cash position of the company and won’t be facing any
challenges. Next the secured loans have decreased by 48% on the other
hand owner’s equity has improved 35.5% which indicates the company is
not that dependent on external lenders and reducing financial risk.

COMPARITIVE INCOME STATEMENT

PARTICULARS 2018 2019 ABSOLUTE CHANGE % CHANGE
NET SALES 3055.9 3295.39 239.5 7.8
OTHER INCOME 747.8854 413.3759 -334.5 -44.7
TOTAL INCOME 3803.79 3708.77 -95.0 -2.5
         
MANUFACTURING EXPENSES 1492.78 1602 109.2 7.3
PERSONAL EXPENSES 143.88 197.71 53.8 37.4
SELLING EXPENSES 43.84 48.12 4.3 9.8
ADMINISTRATIVE EXPENSES 301.87 230.49 -71.4 -23.6
TOTAL EXPENDITURE 1982.37 2078.32 96.0 4.8
OPERATING PROFIT 1073.53 1217.07 143.5 13.4
EBITDA 1821.42 1630.44 -191.0 -10.5
LESS: DEPRECIATION 131.82 124.86 -7.0 -5.3
EIBIT 1689.6 1505.58 -184.0 -10.9
LESS: INTEREST 1023.49 739.94 -283.6 -27.7
EBT 739.94 765.64 25.7 3.5
LESS: TAX 180.25 78.06 -102.2 -56.7
PROFIT AFTER TAX 485.86 687.58 201.7 41.5

INTERPRETATION:
 As is evident from the above comparative income statement, the sales of
DLF Ltd. Increased by Rs. 239.5 crores during 2019 against 2018.
 The advertisement expenses have decreased by -23.6% against increased
net sales thus this entire scenario indicates that selling off apartments
wasn’t quite challenging as they had a reputed goodwill and environment.
 The tax and interest were also significantly less and thereby the company
had made a good amount of profit of Rs. 201.7 crores in the period of 2018
to 2019.
 RATIO ANALYSIS
RATIO FORMULA 2019 2018
LIQUIDITY & SOLVENCY RATIOS      
Current Ratio Current Assests / Current Liabilities 1.92 2.42
Quick Ratio Current Assets - Inventories / Current liabilities 1.01 1.27
Debt Equity Ratio Debt / Equity 0.32 0.82
Long Term Debt Equity Ratio Long Term Debt / Total Shareholders Equity 0.25 0.76
PROFITABILITY RATIOS    
Gross Profit Margin Goss profit / net sales * 100 33.14 30.81
Cash Profit Margin Cash profit / Net sales * 100 21.9 16.23
Operating Margin Operating Profit / Net sales * 100 36.93 35.12
Net Profit Margin Net Income / Net Sales * 100 20.86 11.95
Return on Net worth Net Income / Shareholders Equity 3.52 2.53
Return on Capital Employed EBIT / Capital Employed 5.69 6.23
EFFICIENCY RATIOS    
Inventory Turnover Ratio COGS / Average Inventories 0.29 0.31
Assets Turnover Ratio Net Sales / Average Total Assets 0.12 0.12
Investments Turnover Ratio Sales Revenue / Shareholders Equity + Debt O/S 0.29 0.31
Fixed Assests Turnover Ratio Revenue / Fixed Assets 1.98 0.79
Debtors Turnover Ratio Net Credit sales / Average Account Receivable 11.45 6.11

INTERPRETATION:

 LIQUIDITY % SOLVENCY RATIO:

The current ratio of our company has reduced from 2.42 : 1 to 1.92 : 1 which is a
downfall as the required standard form is 2 : 1 and therefore liquidity of
company in stake. Quick ratio has decreased a slight downwards but since the
decent standard of 1:1 is maintained and difficulty for converting to cash is not
there. Debt equity ratio is showing a good standard as it has reduced from 0.82%
in 2018 to 0.25% in 2019 and this shows that decreased probability of
bankruptcy in event of economic downturn. The same goes for long term debt
equity ratio. Return on net worth shows how much profit company generates
with invested money of shareholders and here that has shown increase of 3.52 %
 from 2.53% which is good for the investors as their share price is rising in the
company

 PROFITABLITY RATIOS:
The gross profit margin had shown increase of 33.14% in 2019 against 30.81 in
2018 which is a positive news as larger the gross profit the better for the
company. The cash profit is also resulting the same advantage of having higher
growth percentage in current year and thereby increasing their cash flow into
business. Operating profit margin has seen a slight increase of 36.93% and
operating margin looks at EBIT as percentage of sales. Net profit margin shows
how much sales is shown as net income after all expenses are paid, here the
sales as increased to 20.86% in 2019 from 11.95 in 2018 which is a significant
growth.

 EFFICIENCY RATIOS:
Inventory turnover ratio measures how efficiently a company manages its
inventory and over here the company has a lower ratio of 0.29 in the year 2019.
Lower inventory ratio indicates that the company is not managing well and it
may be overstocking or have an issue with sales. The fixed assets turnover ratio
measures the companies long term capital investment. There is an increase in
the fixed assets from 0.79 in 2018 to 1.98 in 2019 which implies that they have a
great turnover in the total assets. Debtors turnover ratio measures how a
company is collecting revenue and how efficiently it is using its assets and over
here the company has seen major increase in the value shifting from 6.11 in
2018 to 11.45 in 2019 thus higher the turnover can indicate that DLF is efficient
and has high proportion of quality customers that pay their debts quickly.
Investment turnover ratio compares the revenue produced by the company to
its debt and equity. Over here the investment turnover ratio is gradually falling
from 0.31 in 2018 to 0.29 in 2019 which means our companies’ operations is not
efficient and company is not able to use their resources accordingly to generate
revenues.