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Annexure-V Cover Page for Academic Task-1

MITTAL SCHOOL OF BUSINESS FACULTY OF BUSINESS AND APPLIED
ARTS

COURSE CODE : FINM542 Course Title : Corporate Finance-1

Course Instructor : Mr. Mahesh Sarva Section : Q2155

Class and Term : MBA Business Academic Task Title : Consolidated

Analytics,2021 Construction Consortium Limited

Date of allotment : 27th September Date of Submission : 22nd October

2021 2021

Student Roll no : RQ2155A42 Student’s Reg. no. : 12111334

Evaluation Parameters : Profiling of company

Analysis of long term and short term finance

Comparison with peers

Expected outcome: Read the annual reports of the companies and

find financial information and sources of finance. Identify the long and
short term finance and also make comparative analysis.

DECLARATION

I declare that this Assignment is my individual work. I have not copied it from any
other student work or from any other sources expect where due acknowledge is
made explicitly in the text, nor has any part written for me by any other person.

Student’s Signature: Tabrej Ansari

Evaluator’s Comments (For Instructor’s use only)

 General Observation Suggestions for Improvement Best part of the assignment

Evaluator’s Signature and Date:

Marks Obtained: ____________________ Max. Marks:

_____________________
CONSOLIDATED CONSTRUCTION
CONSORTIUM LTD.
Consolidated Construction Consortium Ltd is an
ISO 9001:2000 certified company which provides
integrated turn-key construction services in the
industrial commercial infrastructure and residential
sectors of the construction industry. They also
provide services which include construction design
engineering procurement construction and project
management. The company is having a significant
presence in India with offices in Chennai
Bangalore Hyderabad Delhi Kolkata Pune and
Thiruvananthpuram. Their specialty projects
involve Precast Pre-stressed Structures Pre-
engineered structures and Shell Structures are
remarkable for their innovative and revolutionary
application of technology and expertise. The
private and public sector clients of the company
include Infosys Technologies Ascendas IT Park
(Chennai) Khivraj Technology Park Manipal
University Airport Authority of India and Hi-Tech
Carbon.Consolidated Construction Consortium Ltd
was incorporated in the year 1997. In February
1997 the company received an order for a 52
metre long portal span structure in India for
Intimate Fashions Ltd Chennai. In March 1999
they constructed two hyperbolic paraboloid shell
structures for Infosys Technologies Ltd in
Bangalore.In March 2002 the company
constructed world's first platinum rated green
building for CII Godrej Green Business Center at
Hyderabad and in April 2003 they constructed a
convention center with an orthogonal structure
and curve beam elements for Manipal Academy of
Higher Education in Mangalore.In April 2006 the
company incorporated Consolidated Interiors Ltd
as a subsidiary which is engaged in executing
interior contracting and fit out services for their
projects apart from a range of public and private
sector clients. In May 9 2007 CCCL Infrastructure
Ltd was incorporated with the object of engaging
in the development of special Economic Zones and
in May 31 2007 they incorporated Noble
Consolidated Glazings Ltd.During the year 2007-08
the company received some major orders which
include an IT Park at Pune Hotel Projects in
Bangalore Mahindra & Mahindra Research Valley in
Chennai International Airport Terminal in
Mangalore Power Plants in Chennai and Kolkata
Airport Terminal in Dehradun and Mahindra World
School in Chennai.In June 2008 the company
entered into a strategic and investment
partnership with Innotech Construction LLC in
Dubai to add their engineering excellence and on-
time project execution skills. In July 2008 they
bagged the Renault-Nissan Automobile Plant and
the NATRIP order in Chennai for a Value of Rs 240
crore.In October 2008 the company in tie up with
Herve Pomerleau International Inc Canada has
bagged the Chennai Airport Project from Airport
Authority of India for Rs 1212 crore. They also
bagged Cargo complex project at Chennai Airport
for Rs 68 crore and allied services work at
Tiruvananthapuram for Rs 41 crore.

SOURCES OF FINANCE
The most explorable sector is financing sources, especially for
entrepreneurs who are going to start a new firm. It is, without a
doubt, the most difficult aspect of all the attempts. There are
several capital sources that we can categorize based on various
factors. Knowing that there are numerous options for financing or
capital, a corporation may make an informed decision. Choosing
the correct financing source and combination is a major challenge
for every finance manager. The process of determining the best
source of funding necessitates a thorough examination of each and
every source of funding. It is necessary to comprehend all of the
 characteristics of the financial sources in order to analyze and
compare them. The company's creditworthiness may be influenced
by certain sources of funding. When a corporation wants to raise
funds by issuing secured debentures, it may have an impact on
unsecured creditors, who may be hesitant to issue another line of
credit. Sources are divided into three categories based on their
duration: long-term, medium-term, and short-term. Sources of
finance are divided into owned and borrowed capital based on
ownership and control. The two sources of capital generation are
internal and external sources. All of the sources have unique
qualities that cater to various types of requirements. Let's take a
closer look:

 Long term sources of finance

 Short term sources of finance
These sources of finance are mainly classified according to the time.

LONG TERM SOURCES OF FINANCE

Long-term finance refers to capital requirements that last longer
than five years, such as 10, 15, 20, or even longer, depending on
other considerations. Long-term sources of funding are used to fund
capital expenditures in fixed assets such as equipment and
machinery, land and buildings, and so on. Long-term sources of
funding are also used to fund a portion of working capital that
remains with the company indefinitely. Long-term financing sources
can include any of the following:

 Equity Shares
 Preference Shares
 Retained Earnings
 Debentures
 Financial Institutions,
 Venture Capital Assets

When a company wants to scale up and expand, long-term financing

is very beneficial. Long-term sources of finance include equity, term
loans, and venture capital. Long-term financing might be based on
the company's ownership, debt, or a combination of both. Long-term
financing has the advantage of allowing you to raise a substantial
amount of money quickly.

Now let’s discuss some brief about these long term financing
sources.

EQUITY SHARES
Which shares aren't preferred shares? Holders of ordinary shares,
often known as common stock, are the true proprietors of the
corporation. A share of the company's share capital is referred to as a
share. It can be sold for a discount, a premium, or face value. Any
corporation can use equity shares as a long-term financing source.
These are non-redeemable shares that are issued to the general
public. Shareholders have the right to vote, share profits, and claim a
company's assets. Equity share value can be expressed in a variety of
ways, including par value, face value, book value, and so on. Equity
shares have the following qualities that make them one of the most
popular stock market investment tools:
  Most varieties of equity shares give an investor voting rights,
allowing him or her to select the people who will govern the
company.
 Choosing effective managers assists a company to enhance its
annual turnover, resulting in higher average dividend income for
investors.
 Additional profits made by a corporation throughout a fiscal
year are available to equity shareholders.
 Boost the total wealth of individual investors who have made
significant investments in a company's stock shares.
 Even if equity shares are not returned until a company shuts,
they might be traded in the secondary capital market if they
have already been issued.
 As a result, investors can withdraw funds from a corporation at
any time. This ensures tremendous wealth creation by allowing
such shares to appreciate in value.

PREFERENCE SHARES
Preference shares, also known as preferred stock, are a type of stock
in which dividends are paid to stockholders before regular stock
payouts are issued. As a result, preference shareholders have a leg up
on common shareholders when it comes to profit distribution. As a
result, in the event of a company's bankruptcy, preference
shareholders receive dividends first and have first access to the
company's assets before common stockholders. The dividend is
predetermined for preference shareholders, but they do not have
voting rights like common shareholders. It has been noticed that a
growing number of corporations are releasing various forms of
preference shares. They have remnants of both equity and debt
shares, in essence. These shares are likewise classified as hybrid
financing instruments from this perspective. As the global bear
market continues, more investors are turning to preference shares as
a way to earn big long-term gain.

Following are the features of the preference shares:

 Preference shareholders in any corporation have much more

clout than regular shareholders.
 They are entitled to the first payment of any dividends paid by
the companies whose stock they own.
 Shareholders of these shares have no voting rights in any
corporate transactions. As a result, the characteristics are also
one of the key downsides of preference shares.
 It may appear to be a significant disadvantage for any investor;
nonetheless, this is precisely why so many corporations issue
these shares. The situation is identical to that of debt holders.
 If an investor wishes to purchase a certain form of these shares,
irredeemable preference shares should be sought.
 These shares provide the bearer some control over the maturity
dates.
 Preference shares have the advantage of being similar to PAT
for most firms. The taxes factor is determined by the dividends
due on each pre-arranged dividend fund.

FINANCE LEASE
A finance lease is a form of financing assets in which the lessee pays
for the hire of the asset or assets while the asset or assets remain the
property of the finance business that hired them. As compensation
for renting the item to the lessee, the lesser charges a rent. The asset
remains in the possession of the lesser, but the lessee has exclusive
use of it. A financial lease transfers almost all of the risks and benefits
of asset ownership to the lessee. When you use a financing lease, the
asset will show up on the lessee's balance sheet as an asset, with
outstanding rentals showing up as a liability. Finance leases can be
fully amortizing or have a balloon payment. The balloon rental is an
agreed-upon amount that the lessee pays at the conclusion of the
rental term, but the lessee has benefited from a cheaper rental during
the term. When the item has an intrinsic worth that is at least
equivalent to the balloon fee, leases with balloon rentals are usually
available.

Following are the features of Finance Lease:

 Financial leases allow the same lessee to essentially deplete the

asset. Financial leases make the lessee a virtual owner of the
property.
 The lesser does not take any asset-based risks or gains. He only
takes financial risks and rewards, which is why the term financial
leases was coined.
 The lease is non-cancelable, which means the lessee cannot
return the asset without paying the entire amount owed to the
lesser.
 In this sense, they are full-payout, implying that the lesser
investment will be fully repaid.
 The lesser would not supply any asset-related services because
he would not take any position other than that of a financier. As
a result, the contract is a net lease.
 The risk that the lesser assumes is not asset-based, but rather
lessee-based. The asset's value is significant only in terms of the
security of the lesser investment.
 In financial leases, the lesser payback period, known as the
primary lease period, is followed by a longer period, known as
 the secondary lease period, to allow the lessee to exhaust the
asset value.

LONG TERM BORROWINGS

Long-term liabilities are a company's financial commitments that are
due in more than one year. The current part of long-term debt is
shown separately to give a better picture of a company's current
liquidity and ability to pay current liabilities as they come due. Long-
term liabilities are sometimes known as noncurrent liabilities or long-
term debt. Long-term liabilities, which may include debentures, loans,
deferred tax liabilities, and pension commitments, are mentioned in
the balance sheet after more current liabilities. Long-term liabilities
are those that are not due within the next 12 months or within the
company's operating cycle if it is longer than a year. The time it takes
a corporation to turn its inventory into cash.

Following are the features of the Long term borrowings:

 In comparison to a rapid loan or a short-term loan, long-term

loans allow for a larger principal amount to be borrowed.
 The bank will be able to give bigger loan amounts depending on
one's financial capability.
 Long-term loans are only available if collateral is provided. This
secures the loan and lowers the danger of the applicant failing.
 If the borrower is unable to repay the loan, the bank may take
possession of the asset held as collateral to complete the
transaction.
 The long-term loan can be repaid in Equated Monthly
Installments (EMIs) over a pre-determined period of time with
the bank. The main amount and the interest are both included
in the payments.
  The rate of interest is typically lower than other forms of loans
due to the size of the loan and the longer term involved.
Because of the fierce competition in the market, the bank may
offer lower interest rates.
 Tax exemptions are available on some long-term loans. One
credit instrument that provides this benefit is a home loan.
 This benefit of tax exemption is not available with a car loan.

Why there is need of long term financing in the

firm
Firms commonly employ long-term debt to undertake long-term
investments, such as the acquisition of fixed assets or equipment,
because their assets and obligations have similar maturities. Long-
term financing also protects against credit supply shocks and the need
to refinance in difficult times. However, not all businesses require
long-term financing. Firms with high development prospects, for
example, may choose short-term debt since they may want to
renegotiate their debt regularly to get better loan terms after a
positive shock. A corporation that requires money to run its
operations can either issue shares or take on long-term debt to raise
funds. The relative cost of capital, present debt-to-equity ratio, and
future cash flow all influence whether it selects debt or equity.

SHORT TERM SOURCES OF FINANCE

Short-term financing is concerned with raising funds for a shorter
period of time, such as a few days to a year. However, there are no
hard and fast laws when it comes to the phrase. Even if it lasts longer
than a year, it is still referred to as short-term financing. Almost many
European banks see short-term financing of up to a year as
acceptable. As a result, we can conclude that short-term finance can
be for as little as one to three months or as long as a year. All working
capital is short-term capital, with the exception of that portion
required to maintain a minimum level of raw materials, inventories,
and completed goods in an industry. It should be highlighted that the
business's regular or permanent working capital needs should be
funded by medium and long-term financing sources.

Companies' short-term financial needs are typically fulfilled by the

following sources:

 Trade Credit
 Accrued Income
 Bank Borrowing
 Factoring
 Commercial Paper

TRADE CREDIT
Trade credit is a business-to-business relationship in which the
borrower (buyer) is given a credit limit by the supplier, allowing the
borrower to buy now and pay later. When an entrepreneur receives
equipment, machinery, materials, or other business-related things
and does not pay cash immediately, but rather later on or before the
due date, trade credit is used. The credit limit is determined by the
buyer's creditworthiness, company requirements, present assets and
obligations, repayment capability, and creditworthiness. Businesses
that offer trade credit typically give buyers 30, 60, or 90 days to repay
the borrowed money in the form of an invoice. Credit repayment
periods for some trades might go up to 180 days or longer.

Following are the features of Trade Credit:

  There are no official debt acknowledgements or legal
mechanisms.
 It's a private agreement between the buyer and the seller.
 It is a source of funding that arises out of the blue.
 If payment is not paid during the discount period, it is a costly
source of financing.
 It is a simple and straightforward method of obtaining short-
term funding.
 It lowers the required capital.
 It allows the company to concentrate on its core activity.
 It does not necessitate any kind of formal agreement or
negotiation.

ACCURED INCOME
Profit has been earned, but it has not yet been received. Mutual
funds and other pooled assets that build revenue over time but only
pay out to shareholders once a year are defined as accruing income.
Accrual accounting is based on the fact that a business might receive
revenue without necessarily producing it. Accrual accounting is used
by many businesses. Businesses that sell goods or provide financial
services to consumers must use this approach as an alternative to
cash accounting. According to the matching hypothesis, revenue
must be taken at the same time as expenses incurred in receiving the
money. Accrued revenue is also employed in the service sector or in
circumstances where customers are paid an hourly rate for work that
has already been completed but will be billed in a later accounting
period. Accrued revenue is represented as an asset on the balance
sheet since it represents a prospective gain for the company in the
form of a cash payment. The matching principle applies to accrued
income. It is not earned but is recorded in the same accounting
period as it is recognized. Consider a furniture company that sold
$500,000 worth of closets and kitchen tables in the quarter ending
March 31, 2020. In the quarter ending June 30, 2020, the purchasing
business will pay the furniture firm. The furniture company, on the
other hand, should record this accrued income in the accounting
period in which it was recognized, which the quarter is ending March
31, 2020. Following are the advantages of Accrued Income:

 Accrual accounting gives a true picture of a company's cash

flow.
 Accrual accounting considers the impact of accrued revenue
over many accounting periods and so reports accrued income
in the recognition period.
 Accrued income is an important line item in US GAAP
accounting techniques, giving consistency of standard
processes and reporting accuracy.
 Accrued income also indicates how much the organization has
delivered as of a specific date or over a specific time period.
 Because income and expenditures are reported in the same
accounting period, accrual accounting makes budgeting easier.
This makes reporting more consistent and cohesive.

BANK BORROWINGS
Factoring is the conversion of credit sales into cash in its most basic
form. Factoring is a financial option for receivables management. In
factoring, a financial institution purchases a company's accounts
receivable and pays the agreed-upon sum immediately. When the
customer pays the loan, the factoring company pays the leftover
amount to the client. Depending on the form of factoring, the factor
or the client is responsible for collecting the debt from the customer.
Following are the features of Factoring:

 The average factoring duration is 90 to 150 days. Some

factoring companies will extend the period beyond 150 days.
 Factoring is seen as a more expensive method of funding when
compared to other short-term borrowing options.
 Factoring receivables is an excellent financial option for start-
ups and small businesses.
 This is because credit eligibility is determined by the customer's
financial strength (debtor). As a result, these businesses can
benefit from their clients' financial soundness.
 Factoring will not be considered for bad debts.
 It is not necessary to have a credit rating. However, before
entering into the arrangement, factoring organizations
normally do any out credit risk study.
 Factoring costs are calculated as follows: finance cost +
operating cost. The cost of factoring varies depending on the
amount of the transaction, the customer's financial status, and
other factors. Factoring costs range from 1.5 percent to 3
percent every month, depending on the financial strength of
the client's customer.
 Factoring is available in India for invoices as low as Rs. 1000.

COMMERCIAL PAPER
A commercial paper is an unsecured promissory note issued by a
corporation approved by RBI having a fixed maturity, negotiable by
endorsement and delivery, issued in bearer form, and issued at such
discount on the face value as the issuing company may determine.
Commercial paper is a money-market product issued (sold) by large
organizations to cover short-term debt commitments (such as
payroll) and is backed only by an issuing bank or corporate guarantee
to pay the face amount on the maturity date specified on the note.
Only companies with high credit ratings from a reputable credit
rating organization are eligible because it is not backed by collateral.
Following are the features of Commercial paper:

 Commercial paper is a short-term money market asset that

consists of a fixed-maturity promissory note.
 It's a certificate that proves an unsecured business loan with a
short maturity date.
 Commercial paper is usually offered at a discount to face value,
but it can also be issued with interest.
 Commercial paper can be sold to investors directly by a
corporation or through banks and merchant banks.

WHY THERE IS NEED OF SHORT TERM FINANCING IN

FIRM
Short-term funding is frequently tied to a business's operational
requirements. It has shorter maturities for 3-5 years than long-term
financing, making it more suitable for working capital swings and
other continuous operating needs. Banks have always provided
short-term loans with fluctuating interest rates. Companies will
sometimes use a financing derivative, such as a swap, to artificially
'fix' these fluctuating rates. Working capital can also be dedicated to
short-term business financing. The quantity of funds required to run
day-to-day activities is referred to as working capital (purchase raw
materials, work in progress, payment of expenses and wages, etc.).
You can utilize the loan to cover short-term cash shortages while you
wait for credit clients to pay their payments. To qualify for a short-
term business loan, you should be prepared to provide your lender
with extensive documents. These documents will detail your
company's cash flow for the last three years, as well as payment
histories for suppliers (accounts due) and other debts (if applicable).
You may also be requested to present your income statement if the
lender requests it.

THE LONG AND SHORT TERM FINANCES OF

Consolidated Construction Consortium Limited
OF 5 YEARS
EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 79.70 79.70 79.70 79.70 79.70

TOTAL SHARE CAPITAL 79.70 79.70 79.70 79.70 79.70

Reserves and Surplus -466.60 -348.12 -201.53 -122.17 -28.56

TOTAL RESERVES AND -466.60 -348.12 -201.53 -122.17 -28.56

SURPLUS

TOTAL SHAREHOLDERS -386.90 -268.42 -121.83 -42.47 51.15

FUNDS

NON-CURRENT LIABILITIES

Long Term Borrowings 34.89 35.20 466.12 465.13 521.64

Deferred Tax Liabilities [Net] 28.58 29.15 29.49 29.91 33.97

Other Long Term Liabilities 21.29 8.72 102.77 127.97 16.59

Long Term Provisions 0.09 0.00 0.00 0.00 1.09

TOTAL NON-CURRENT 84.86 73.07 598.37 623.01 573.30

LIABILITIES

CURRENT LIABILITIES

Short Term Borrowings 1,287.74 1,239.65 483.07 465.67 717.53

Trade Payables 153.31 183.17 175.48 187.92 193.33

Other Current Liabilities 109.27 85.03 260.70 239.79 76.20

Short Term Provisions 0.60 0.00 2.45 0.37 0.13

TOTAL CURRENT LIABILITIES 1,550.92 1,507.85 921.71 893.74 987.20

TOTAL CAPITAL AND 1,248.89 1,312.50 1,398.25 1,474.28 1,611.64

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 270.25 251.91 257.07 263.08 270.49

Intangible Assets 0.00 0.53 0.00 0.00 0.00

Capital Work-In-Progress 0.00 22.58 22.58 22.58 22.58

Other Assets 0.00 0.66 0.70 0.74 0.78

FIXED ASSETS 270.25 275.68 280.35 286.40 293.85

Non-Current Investments 27.78 39.59 0.20 49.08 68.46

Deferred Tax Assets [Net] 0.04 0.03 0.02 0.11 0.49

Long Term Loans And Advances 17.57 15.25 13.71 13.93 13.12

Other Non-Current Assets 629.51 597.26 606.60 471.58 533.72

TOTAL NON-CURRENT ASSETS 945.15 927.81 900.87 821.11 909.64

CURRENT ASSETS

Current Investments 45.46 0.00 0.00 0.00 0.00

Inventories 97.52 111.90 126.69 140.74 159.01

Trade Receivables 133.48 153.79 263.67 420.24 414.81

Cash And Cash Equivalents 6.08 6.23 8.42 26.84 24.73

Short Term Loans And Advances 0.00 0.05 0.02 0.05 0.04

OtherCurrentAssets 21.20 112.72 98.59 65.30 103.40

TOTAL CURRENT ASSETS 303.74 384.69 497.38 653.17 702.00

TOTAL ASSETS 1,248.89 1,312.50 1,398.25 1,474.28 1,611.64

ANALYZATION OF LONG TERM FINNANCE OF

Consolidated Construction Consortium Limited
Consolidated Construction Consortium Limited is large scale industry
so there is need of both the long term and short term finance. When
you are looking at the balance sheet of the company of past 5 years
it is clearly shows that which type of long term finance company
mainly used and these are as follows:

 Equity share capital

 Long Term Borrowings
 Other Long Term Liabilities
 Long Term Provisions

Company also takes other instruments but these are some of the
main instruments which cover all the long term financing of the
company. Now with the help of these find out the changes in the
company.

EQUITY SHARE CAPITAL

The equity share money raised through the issuance of equity shares
is utilized to expand the company's commercial venture.
Furthermore, having a large capital base helps them improve their
market creditworthiness. As if you looking at the balance sheet the
equity share capital of the company remain constant at 79.70 for the
past 5 years. The non-issuance of more shares is the reason why a
company's share capital remains unchanged for years. But change in
the equity share capital is important. The statement of changes in
equity is significant because it enables financial statement analysts
and reviewers to determine what circumstances contributed to a
change in owner's equity during the accounting period. The
fluctuations of shareholder reserves can be found on the balance
sheet. Increase in equity share capital also shows that more public is
interested in acquiring the shares of the company and company has
a good growth in the market. If company wants to increase its equity
shares capital so company has to increase in selling the stocks, raise
the company revenue and try to reduce its operating expenses this
helps in raising the equity share capital.

Consolidated Construction Consortium Limited has to work on these

for increasing its equity capital which benefits the company.

LONG TERM BORROWINGS

Long-term loans boost an investor's capital flexibility by allowing it to
be spread across many ventures while limiting the immediate impact
on operational cash flow. Modernization, expansion, diversification,
and development of business operations all necessitate long-term
funding. When a company's cash position is insufficient and it needs
funds to continue operating for a longer period of time, it usually
turns to long-term finance sources. As shown in the balance sheet of
Consolidated Construction Consortium Limited in 2017-18 the
company long term borrowings was above 521 in 2017 and 465 and
in 2018.
The reason behind this is company is trying to match the assets and
liabilities of the company for that company purchasing the fixed
assets and other equipment. But then there is sudden change in the
long term borrowings as it reduces to 35.20 in 2020 and 34.89 in
2021. There are many reasons why there is decreased in long term
borrowings. Company reduces its cost of production, there is
increase in profits, and company restructures its liabilities and assets.

OTHER LONG TERM LIABILITIES

Other long term liabilities include pension, customer deposits,
deferred tax liabilities, loans and debentures. The term "other" is
used by businesses to refer to anything extra that isn't significant
enough to be identified individually. Such elements are gathered
together rather being broken down one by one and assigned an
individual figure because they aren't considered particularly notable.
In the year 2017 the long term liabilities of the company is 16.59 it
means company payment is due and liabilities are higher than the
assets. In 2018 the liabilities increase to 127.97 which indicate more
goods buy on credit by the company and conserving the cash. In
2020 and 2021 long term liabilities decreases which means the
company giving back to the suppliers which is also good thing that
company becoming debt free and it attracts more public.

ANALYZATION OF SHORT TERM FINANCE OF

Consolidated Construction Consortium
Limited
Short-term financing is utilized to keep a company's cash flow
positive. It can, for example, be used to: get through periods of low
cash flow due to seasonal factors. As we all know that there are
several instruments include in the short term financing, but we going
to analyze following and it covers all instruments and show the
company position these are follows:

 Short Term Borrowings

 Trade Payable
 Other current liabilities

SHORT TERM BORROWINGS

Short-term loans have lower overall interest payments because they
must be repaid within a year. When compared to long-term loans,
the interest rate is lower. Interest is shown on the income statement,
although it can also be paid for a much lower amount. These loans
appear on a firm's balance sheet when the company requires
immediate funding to meet its working capital requirements.
Because a short-term loan is frequently used to bridge the gap
between lengthier funding options, it's also known as a "bank plug."
It shows the company performance as talking about the
Consolidated Construction Consortium Limited in 2017 the short
term borrowings were 11.4% which is considered a good as it
indicating the liquidity of the firm, as company has easily meets its
debt whenever he wants. In 2019-20 the short term borrowings
increases, this shows the company facing the problems in financial
basis not have enough cash to meet day to day needs it is due to
improper management and also there are lots of wastage so that’s
the company need to go for this. But sometimes from the point of
investor it is safe as it takes borrowings in the way of investment. In
2021 the borrowings again reduces as it indicates company pay off
their debt and company is going back to their liquidity position and
which helps the company to get easy short borrowings as it has a
good repo in the market.

TRADE PAYABLE
The money a company owes its vendors for inventory-related
commodities, such as business supplies or materials, is referred to as
trade payables. All of the company's short-term debts or obligations
are included in accounts payable. In the year 2017 trade payables
were 39.26 but within one year there is massive change in it as in
2018 it increases to 55.32. The reason behind increase in the trade
payable is because of the inventory purchase when it comes to
purchasing inventory, there are two options. The first option is to
pay with cash from the leftover funds. The second option is to use an
accounts payable technique to pay on short-term credit. This
indicates the positive cash flow. But on the next year 2019 there is
decrease in the trade payable which means when a company pays
for merchandise or services from a vendor, a debit entry is recorded
in the books, indicating that trade payables are dropping. It also does
not affect the net income of the company. One reason for decreasing
the trade payable is that of negative adjustments of the entries. Then
again in the next year 2020 the trade payable increases and because
company setting new products so there were need of the new
inventories and assets. But in 2021 it reduces it also due to the
lockdown affect.

OTHER CURRENT LIABILITIES

The other current liabilities include dividends, notes payable, income
tax owned and payrolls. It is very similar to the short term
borrowings. Other current liabilities are short-term debt categories
that are grouped together on the liabilities side of the balance sheet
 in financial accounting. The term "current liabilities" refers to debt
that a company must pay back within a year. Companies add the
term "other" to it to represent current liabilities that aren't
substantial enough to warrant their own line in the financial
statements, so they're lumped together as "other current liabilities."
As the short term borrowings increasing there is increase in other
current liabilities. But it affects the cash of the company. It's
computed by dividing the number of days in a period by the ratio of
accounts payable to cost of revenues in that time. This lowers the
balance sheet's accounts payable. Cash is used to reduce current
liabilities, which reduces cash flows from operations.

COMPETITOR OF THE BSL LIMITED

The Consolidated Construction Consortium Limited deal in
construction and belongs to civil industry the two of the competitor
of the Consolidated Construction Consortium Limited are:

 Rail vikas
 GR infra

These are one of the finest companies of their respective industries.

As it is true that the share prices of both the company is higher than
the BSL limited but is their position is better and what’s about the
growth rate of these companies and market position. Let’s compare
these companies to find out which one is good and this is only
possible if we analyze the long and short term finance of these
companies.

As when we talking about the revenue of these three company the

total revenue of:
  Consolidated Construction Consortium Limited =343 CR.
 Rail vikas=15403 CR.
 GR infra=343CR.

The total revenue indicates that GR infra has the large long and short
term finances as the revenue is more than the others two. But the
graphs show in 2021 the Rail vikas has more non-current and current
liabilities. So from this one thing is clear that long and short finance
does not depend upon the revenue of the company. It depends upon
the Financing can be in the form of debt or investment, with major
differences in terms between the two. The payback periods, the total
cost of capital, and the lender's or investor's requirements are all
important aspects to consider when deciding how to finance a firm.
These are considering by taking the balance sheet of the company it
provides the clear cut view of the company.

Deb
Comp % TT 1 Yr Net Net
MCap( P/ ROE( t to
any Price Ch M Perfor Profit( Sales(
Cr) B %) Equ
Name g PE m(%) Rs.) Rs.)
ity

7.1 -
CCCL 0.75 29.89 - - 0.00 400.00 -156 343
4 4.66

GR 2,158 5.1 20,870 5. -

- 0.00 - -156 343
Infra .50 3 .32 79 4.66

Rail 19. 8,976. 8.8 1.

43.05 16.56 130.21 922 15,403 1.02
Vikas 92 01 6 61

ANALYZATION
As talking about the their comparison the CCCL more long term loan
as compared to their other companies and also take larger shorter
term loans then the both the companies. The reason is that assets
are decreasing and current inventories are decreasing to meet the
maturity of the both assets and Liability. Company taking more loans
to buy new inventories and wants to grow the company in 2022.