1.FINANCIAL ACCOUNTINGPRESENTATIONPROF: SUPRIYA SEHGAL

2. TEAM MEMBERS DHEERAJ MADHU NEHA PAWAN SUMITI 3. OBJECTIVES OF THEPRESENTATION UNDERSTANDING THE BASIC CONCEPTS AND TERMSUSED IN FINANCIAL STATEMENTS UNDERSTANDING SOME RATIOS USED FORANALYZING THE FINANCIAL STATEMENT 4. CONTENTSOBJECTIVES OF FINANCIAL STATEMENTBASIC ACCOUNTING EQUATIONSTRUCTURE OF PROFIT AND LOSS STATEMENTSTRUCTURE OF BALANCE SHEET AND CASH FLOW STATEMENT 5. OBJECTIVES OF FINANCIAL STATEMENTS1. TO PROVIDE INFORMATION TO STAKEHOLDERS ABOUT: PERFORMANCE OF THE COMPANY DURING A GIVENPERIOD FINANCIAL HEALTH OF THE COMPANY AS ON ASPECIFIED DATE 6. 2. TO FURNISH INFORMATION USEFUL IN MAKINGDECISIONS RELATING TO INVESTMENT ANDLENDING 7. BASIC FINANCIAL STATMENTS PROFIT AND LOSS STATEMENT BALANCE SHEET CASH FLOW STATEMENT STATEMENT OF ACCOUNTING POLICIES ANDNOTES TO ACCOUNTS 8. DUAL IMPACT OF FINANCIALTRANSACTIONS INCOMEEXPENDITUREASSETSLAIBILITIES 9. EXAMPLES OF FINANCIALTRANSACTIONS SALARY RECEIPT RENT PAYMENT PURCHASE OF HOUSE TAKING OF HOUSING LOAN BUYING MF UNITS LOAN EMI 10. FUNDAMENTAL ACCOUNTINGCONCEPTS BUSINESS ENTITY:AN ENTERPRISE IS DIFFERENT FROM THE PERSONS WHO OWN IT. GOING CONCERN:ENTERPRISE WILL CONTINUETO EXIST IN A FORESEEABLEFUTURE. 11. ACCRUAL:REVENUE AND EXPENSES ARE RECOGNISED ASTHEY ARE INCURRED AND NOT AS MONEY ISRECEIVED OR PAID. SUBSTANCE OVER FORM:SUBSTANCE OF A TRANSACTION TAKESPRECEDENCE OVER LEGAL FORM. 12. PRUDENCE:RECOGNISE ALL KNOWN EXPENSES ANDLOSSES. DO NOT RECOGNISE REVENUE ANDPROFITS UNLESS YOU ARE SURE OFREALISATION OF THE SAME. CAPITAL EXPENDITURE: EXPENDITURE WHICH BRINGS INTO EXISTENCE ASSET OR BENEFIT OF A LONG TERM NATURE. E.G. BUILDING, COMPUTERS, FURNITURE, EQUIPMENT. 13. REVENUE EXPENDITURE:EXPENSES WHICH ARE INCURRED TO EARNREVENUE AND WHICH ARE WRITTEN OFF OVER ANORMAL ACCOUNTING PERIOD. E.G. SALARY,RENT, STATIONERY, ELECTRICITY 14. PROFIT AND LOSS (P&L) ACCOUNT A STATEMENT SHOWING REVENUES ANDEXPENDITURE OVER A DEFINED PERIOD OF TIME. ITSHOWS RESULTS OF BUSINESS OPERATIONS FOR ADEFINED DURATION. PROFIT = TOTAL INCOME TOTAL EXPENDITURE. IT IS A MEASURE OF FINANCIAL PERFORMANCE. 15. INCOME AND EXPENDITURE ARE RECOGNISEDIN ACCORDANCE WITH GENERALLY ACCEPTEDACCOUNTING PRINCIPLES (GAAP). 16. STRUCTURE OF A P & L ACCOUNT PERTICULARS DETAILS($) AMOUNT($)GROSS PROFITXXXXOPERATING EXPENSESXXXXOPERATING PROFITXXXXINTEREST PAYABLEXXXXNET PROFITXXXXCORPRETATION TAXXXXXPROFIT AFTER TAXXXXX 17. BALANCE SHEET A STATEMENT OF ASSETS AND LIABILITIES OFTHE COMPANY. A SNAPSHOT VIEW OF A BUSINESS AT ADEFINED POINT OF TIME. BALANCE SHEET IS A MEASURE OF FINANCIALRESOURCES OR WEALTH OF A COMPANYWHEREAS PROFIT AND LOSS ACCOUNT IS ANINDICATOR OF PERFORMANCE OF A COMPANY. 18. BALANCE SHEET IS ALWAYS BALANCED. ASSETS ARE EQUAL TO LIABILITIES. 19. BALANCE SHEET: HORIZONTAL STRUCTURE LIABILITIESASSETSEQUITY CAPITAL FIXED ASSETS(PLANT ,BUILDING, LAND, MACHINERY) LOAN FUNDSCURRENT ASSETS(CASH DEBTORS)CURRENT LIABILITIES TOTAL TOTAL 20. BALANCE SHEET: VERTICAL STRUCTUREEQUITY CAPITALLIABILITIES(OWED)RESERVESSOURCESLOAN FUNDSASSETSFIXED ASSETS(OWNED)NET CURRENT ASSETS(CURRENTAPPLICATION ASSETS LESS CURRENTLAIBILITIES 21. ASSETS AND LIABILITIES LIABILITIES: AMOUNTS OWEDBY THE COMPANY TO PARTIES EXTERNAL TO THECOMPANY SOURCES OF FUNDS. ASSETS: RESOURCES OWNED BY THE COMPANY-APPLICATION OF FUNDS. IT COULD BE PRESENTED IN EITHER AHORIZONTAL OR VERTICAL FORMAT. 22. RELATION AFTER ALL THE DISCUSSTION, WE CAN SAYTHAT THE PROFIT AND LOSS ACCOUNT,BALANCE SHEET AND CASH FLOW ISSTRONGLY RELATED TO EACH OTHER, ORDEPENDEND TO EACH OTHER. HOW THEYARE RELATED TO EACH OTHER IS SHOWING INFIGURE. 23. PROFIT AND LOSS A/C BALANCEBALANCESHEETSHEET31MAR 2011 31MAR 2012CASH FLOW 24. UNITECHLIMITEDMaking key strategic moves 25. ABOUT UNITECH LIMITEDUNITECH LIMITED IS INDIAS SECOND LARGESTREAL ESTATE INVESTMENT COMPANY ANDHAS RECENTLY CLAIMED TO BE THE LARGESTREAL ESTATE BUILDER IN THE COUNTRY, THECOMPANY IS BASED IN NEW DELHI AND RANKS1484, IN FORBES GLOBAL 2000 LISTING OF THETOP 2000 PUBLIC COMPANIES IN THE WORLD BYFORBES MAGAZINE, 32ND IN INDIA. 26. ITS CONSTRUCTION BUSINESS INCLUDESHIGHWAYS, ROADS, POWERHOUSES,TRANSMISSION LINES, AND IT HAS RESIDENTIALPROJECTS CALLED UNITECH CITIES OR UNIWORLD, IN CITIES LIKE MUMBAI, DELHI, KOLKATA,CHENNAI, HYDERABAD, BANGALORE, KOCHI, NOIDA ,GREATER NOIDA, AGRA, LUCKNOW , VARANASI,GURGAON, AND GHAZIABAD. 27. FOUNDER AND HISTORY OFUNITECHFOUNDED BY 5 PARTNERS, RAMESH CHANDRA, DR .S. P. SHRIVASTAVA , DR . P K MOHANTI , DR .RAMESH KAPUR AND DR . BAHARI ANDORIGINALLY FORMED AS UNITED TECHNICALCONSULTANT PRIVATE LTD IN 1972 AS A SOILINVESTIGATION COMPANY. THEY LATER MOVEDINTO CIVIL ENGINEERING CONTRACTS IN 1974. THECOMPANY BEGAN TO ENTER INTO REAL ESTATE IN1986. AND STARTED TO INCREASE FOCUS IN REALESTATE IN 2000 ,TODAY IT IS INDIAS SECOND-LARGESTLISTED REAL ESTATE FIRM. 28. SOME MORE FACTS ABOUT UNITECHTHEY HAVE RECENTLY FORMED A LARGE JOINTVENTURE WITH NORWAY BASED TELENOR GROUP TOCREATE UNITECH WIRELESS. IN AUGUST 2009, ITSECURED A 50 BILLION RUPEE ($1 BILLION) LOANFROM STATE BANK OF INDIA (SBI.BO) TO FUND ITSMOBILE PHONE NETWORK ROLLOUT. 29. UNITECH AT A GLANCEUNITECH LIMITEDTYPE: PUBLICINDUSTRY:REAL ESTATEFOUNDED: 1972FOUNDER(S):RAMESH CHANDRAHEADQUARTERS:NEW DELHI, INDIAKEY PEOPLE:RAMESH CHANDRA,( EXECUTIVE CHAIRMAN)REVENUE: $760 MILLION (2008)[1]NET INCOME:$300 MILLION (2008)[1]TOTAL ASSETS: $3.03 BILLION (2008)[1]EMPLOYEES: 1,472 (2011)[2]WEBSITE: UNITECHGROUP.COM 30. UNITECH LIMITED 31. BALANCE SHEET OF UNITECH LTD. FROM(2011-2012) SOURCES OF FUNDSMARCH 2012MARCH 2011 (Rs Crores) (Rs Crores)EQUITY SHARE CAPITAL 523.26523.26SHARE APPLICATION MONEY_ _PREFERENCE SHARE CAPITAL _ _RESERVES & SURPLUS 9,115.738758.61SECURED LOANS1,240.823,566.83UNSECURED LOANS1,275.032,002.24TOTAL12154.8414850.93 32. CONT..USES OF FUNDS : FIXED ASSETSGROSS BLOCK120.84154.27LESS : REVALUATION RESERVE _ _LESS : ACCUMULATED 50.25 49.78DEPRECIATIONNET BLOCK70.59 104.49CAPITAL WORK-IN-PROGRESS 18.03 10,870.28INVESTMENTS2,424.812,054.02CURRENT ASSETS, LOANS &14,267.08 9,827.59ADVANCESLESS : CURRENT LIABILITIES & 4,625.688,005.45PROVISIONS 33. CONT..TOTAL NET CURRENT ASSETS 9,641.401,822.14MISCELLANEOUS EXPENSES _ _TOTAL12,154.84 14,850.93NOTES :BOOK VALUE OF UNQUOTEDINVESTMENTS2,424.812,054.12MARKET VALUE OF QUOTED 0.031.44INVESTMENTSCONTINGENT LIABILITIES 2,234.641,805.68NUMBER OF EQUITY SHARES26163.0126163.01OUTSTANDING (LACS) 34. PROFIT AND LOSS A/C FORUNITECHPROFIT AND LOSS A/CMARCH 2012 MARCH 2011INCOME :OPERATING INCOME 1287.911340.41EXPENSES :METERIAL CONSUMED_3.92MANUFACTURING EXPENSES 831.16 844.14PERSONNEL EXPENSES 128.52 115.41SELLING EXPENSES _5.70ADMINSTRATIVE EXPENSES 70.9494.14EXPENSES CAPITALISED __ 35. CONT..COST OF SALES1030.61 1103.31OPERATING PROFIT 257.30237.10OTHER RECURRING488.68375.50INCOMEADJUSTED PBDIT 745.98612.60FINANCIAL EXPENSES 279.94329.21DEPRECIATION 6.786.68OTHER WRITE OFFS _ _ 36. CONTADJUSTED PBT 429.57276.71TAX CHARGES132.68218.09ADJUSTED PAT 326.5958.62NON RECURRING ITEMS_ 451.46OTHER NON CASH ADJUSTMENTS 30.53 -1.84REPORTED NET PROFIT357.12506.24EARNINGS BEFORE3179.40 2343.11APPROPRIATIONEQUITY DIVIDEND26.16 _ 37. CONT..PREFERENCE DIVIDEND _ _DIVIDEND TAX4.24_RETAINED EARNINGS 3179.40 2312.70 38. CASH FLOW CASH FLOW MARCH 2012 MARCH 2011PROFIT BEFORE TAX459.11 728.17NET CASH FLOW-OPERATING924.90 -927.13ACTIVITYNET CASH USED IN INVESTING 96.46-71.13ACTIVITYNET CASH USED IN FIN. ACTIVITY -1131.88 1054.09NET INC / DEC IN CASH AND-110.5455.83EQUIVALENTCASH AND EQUIVALENT BEGIN OF 179.01 209.43YEARCASH AND EQUIVALENT END OF 68.50265.26YEAR 39. Ratio AnalysisCurrent Ratio = current assets current liabilitiesUnitechs Current Ratio = 3.08 (mar 12)Previously (mar 11) it was 1.23Higher the current ratio, higher the liquidity forthe firm. 40. Ratio AnalysisOperating Margin = operating income salesUnitechs Operating margin is 19.97% while inmarch 11 it was 17.68%.Higher the operating margin, higher theeffectiveness of the firm. 41. Ratio AnalysisNet Profit Margin = net profitsalesUnitechs Net profit margin is 18.38% while inmarch 11 it was 29.72%.Higher the net profit margin, higher theeffectiveness of the firm. 42. Ratio AnalysisEarnings per share (EPS) = net profitno. of sharesUnitechs adjusted EPS is Rs 1.25 while in march11 it was Rs 0.22Higher EPS indicates higher return per share. 43. Ratio AnalysisBook Value = equity + reserves no. of sharesUnitechs Book Value of a share is Rs 36.84 whileit is being traded for Rs 24.75 (as on 01/10/12)High book value and Low traded value meansthat the share is undervalued.