8/9/2019 Evaluation of Performance Appraisal of Infra Structural Industry- A

1/10

Evaluation of PerformanceEvaluation of PerformanceAppraisal of InfrastructuralAppraisal of Infrastructural

Industry- A ComparativeIndustry- A ComparativeStudyStudy..

By

Kunal Bose

8/9/2019 Evaluation of Performance Appraisal of Infra Structural Industry- A

2/10

IntroductionIntroduction Indian Construction Industry is one of

the fastest growing Construction

Industry Internationally and thesecond largest employer in India.

In India Construction has accountedfor around 40 percent of thedevelopment investment duringthe past 50 years. It contributes

more than 5 percent to thenations GDP and 78 percent to

the gross capital formation. Objective of study.

It is an attempt to understandperformance of Senbo EngineeringLimited by making a comparison of itsfinancial and non financialperformance within the industry.

8/9/2019 Evaluation of Performance Appraisal of Infra Structural Industry- A

3/10

3CI analysis3CI analysis Company- Senbo- Todays Challenges And Tomorrows Visionwas incorporated in 13th July 1990. Later on 1st July

1995 it was converted into a Deemed Public LimitedCompany and subsequently converted into PublicLimited Company on 13th April 2005, which is nowknown as Senbo Engineering Limited.

Competitor- Larsen & Turbo, TANTIA, Gamon India,Simplex Infrastructure Limited, Punj Lloyd, Unitechetc.

Clients- Hooghly River Bridge Commissioners ,DMRC, West Bengal Transport InfrastructureDevelopment Corporation Ltd, RITES Limited,Kolkata Project Office, etc.

Industry-

8/9/2019 Evaluation of Performance Appraisal of Infra Structural Industry- A

4/10

Methodology- The methodology of the project isprimarily based on in-house data and secondary data

collected from different sources

Components of performance appraisal. Sales

Profit

Operating Expenses

Capital Employed

Working Capital

ROA

8/9/2019 Evaluation of Performance Appraisal of Infra Structural Industry- A

5/10

AnalysisAnalysis

Comparision Chart of companies(March 2006)

Headings

Senbo EnggLtd.

TANTIA Gamon SimplexInfrastructure Ltd

Sales (in cr.)

131.88 162.29 1485.09 1344.58

Profit (in cr.)

29.38 8.44 102.84 41.64

OperatingExpences (in cr)

45.12 144.6 797.78 1226.47

Return on assets(in%)

44.08 11.69 1.28 17.01

CapitalEmploted(in cr.)

47.25 120.8 724.1 97.6

Working Capital (incr)

38.25 95.14 347.91 468.04

( )om par is ion c har t o f co mpa ni es M arc h 2 00 7Headings enbong g.td

TANTIA Gamon implexInfrastructue Ltd(ales in.)r .8 96 .46 03 .851 69 .71 0 96(rofit in.)r .15 .3 14 .8 36 .3 71peratingxpences( )n cr.7 77 217 .055 59 .73 91

eturn on(ss ets i n%).79 .2 45 .4 12 .6 86

apital (mploted in.)r.2 75 .85 45 .78 9 .38 99

orking(apital in)r

.4 89 .24 94 .77 42 .26 84

8/9/2019 Evaluation of Performance Appraisal of Infra Structural Industry- A

6/10

8/9/2019 Evaluation of Performance Appraisal of Infra Structural Industry- A

7/10

Ratio Analysis..Ratio Analysis..urrent ratio comparison

Headings -0052006 -0062007 -0072008 -00 82009enbo Engineering.td .23 .57 .18 .76

TANTIA .36 .98 .74 .82a mon I ndi a .05 .82 .58 .69

implex .nfrastructure Ltd .96 .69 .64 .58

Current AssetsCurrent Ratio =

Current Liabilities

8/9/2019 Evaluation of Performance Appraisal of Infra Structural Industry- A

8/10

Cont.Cont.e tu rn on i nve st men t

Headings -0052006 -0062007 -0072008 -00 82009enbo Engineering.td .92 .2 .58 .26

TANTIA .99 .13 .81 .74a mo n I nd ia .4 2 .0 05 .6 6 .9 47

implex .nfrastructure Ltd .2 66 .2 47 .8 37 .78

Operating Profit X 100ROI = Average Capital Employed

8/9/2019 Evaluation of Performance Appraisal of Infra Structural Industry- A

9/10

FindingsFindings

Well managed net profit throughout theperiod.

Rate of Capital Employed is notAttractive.

Current Ratio is around 2.

Lack of new projects.

Employees skills are not totallyemployed.

8/9/2019 Evaluation of Performance Appraisal of Infra Structural Industry- A

10/10

RecommendationRecommendation

Since the net profit margin is good and itsassets turnover ratio is not that good soit is necessary to get an increase in

overall return. reducing the inventory level and at the

same time increasing the cash will be

help it to improve its performance inliquidity management.

like its competitors it can also go for someother projects besides its current

activities.