Accounts Ppt. jbs

8/14/2019 Accounts Ppt. jbs

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FINANCIAL STATEMENTANALYSIS (2007-2008)

Parsvnath Developers Ltd.


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COMPANY PROFILE

Parsvnath Developers Limited is one of Indias leading realestate developers.

The Company was incorporated on July 24, 1990 under theCompanies Act, 1956 as Parsvnath Developers Limited.

It has its presence in 51 cities and 18 states across thecountry.

The company is primarily engaged in the business ofpromotion ,construction and development of integratedtownships ,residential and commercial complex ,multistoriedbuildings, flats, houses, apartments, shopping malls, IT parks,

hotels, SEZs etc.


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ACCOUNTING POLICIES

Basis of Accounting

The Company maintains its accounts on accrual basis. Fixed Assets

1) Fixed assets are stated at cost of acquisition or

construction less accumulated depreciation.

2) Financing costs relating to borrowed funds attributable to

acquisition or construction of fixed assets. Depreciation

1) Depreciation on fixed assets is provided on written down

value method

2) Based on the managements estimates of the useful life of

the assets, whichever is higher. Accordingly, the

depreciation rates used

3) Cost of building on land held on license basis is

amortized over the period of license of project facility


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Revenue Recognition

1) Revenue from projects is recognized on the Percentageof Completion Method of accounting.

2) Income from construction contracts is recognized by

reference to the stage of completion of the contract

activity at the reporting date of the financial statements.

Cost of Construction/Development

1) Cost of Construction/Development incurred is charged to

the profit and loss account proportionate to project area

sold.

Inventories

1) Completed unsold inventory is valued at lower of cost ornet realizable value.

2) Work-in-progress is valued at cost, which comprises cost

of land, materials, services and other overheads related

to projects under construction


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Investments

1) Investments Intended to be held for more than a year areclassified as long term investment.

2) All other investments are classified as current

Investments.

3) Long term Investments are stated at cost less provision

for diminution in value, if such diminution is other thantemporary.


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MANAGEMENT DISCUSSION

AND ANALYSIS

Urbanization - driving demand in residential sector1) Sustained economic growth has increased the rate of

urbanization which, with favorable demographics and

rising income levels, holds the key to real estate

development.

driving demand in commercial sector

1) IT/ITES, Hospitality & Retail sectors - driving demand in

commercial sector

2) Retail market is expected to grow from USD 330 billion in

2007 to USD 427 billion by 2010 and further to USD 637

billion by 2015. Development of Special Economic Zones (SEZs)

1) The SEZs have received priority of the Government,

resulting in a big boost and the trend is expected to

intensify in the coming years.


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Review of Operations

1) Developable area increased to 211 million square feetfrom 153 million square feet of the last fiscal.

2) Number of Customers have increased by 5893 during the

year.

3) Launched 28 new Projects, which includes 11

Residential, 12 Commercial, 5 Integrated Townships.


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ACCOUNTING RATIOS LIQUIDITY RATIOS= LIQUID ASSETS /CURRENT

LIABILITIES

1) CURRENT RATIO= CURRENT ASSETS / CURRENT

LIABILITIES

2) LIQUID RATIO= LIQUID ASSETS / CURRENTLIABILITIES

RATIOS As on 31.03.2008

Current ratio 3.39

Liquid Ratio 1.53


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ACTIVITY RATIOS WORKING CAPITAL TURN OVER RATIO= SALES

/ WORKING CAPITAL

INVENTORY TURNOVER RATIO= COGS /

AVERAGE STOCK

DEBTORS TURNOVER RATIO= TOTAL SALES /

ACCOUNTS RECEIVABLES


WC TURNOVER RATIO 1.02

INVENTORY TURNOVER

RATIO

0.93

DEBTOR TURNOVER

RATIO

2.22


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PROFITABILITY RATIOS

GROSS PROFIT RATIO = GROSS PROFIT / NET

SALES

OPERATING RATIO = COGS + OPERATING

EXPENSES / NET SALES


GROSS PROFIT RATIO 34.41

OPERATING RATIO


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End..

Accounts Ppt. jbs

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