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Finance Project Report on Profitability Analysis of SMSIL
PROFITABILITY ANALYSIS:
An empirical approach has become very popular during the recent years. The reason
for the growing popularity of the subject is that it primarily concerns with the concept and
techniques of the analysis of profitability which can be advantage only used by managers,
creditors, owners.
Analytical and critical assessment of the various aspects of financial principles helps
judicious application of assets and enables to take right decision at right time. A
comprehensive idea is gained to run day to day business in proper perspective.
PROFIT & PROFITABILITY
1. Concepts of Profit:
Profit plays an important role in every business organization and its determination is
really a tough one. Profit is not only concern with the proprietors but also income-tax
authorities, managers, directors etc. because all of them are get a percentage of net profit.
Even the accountants are not unanimous on this matter.
Now question arises, "What is Profit?"
Law and even the accountants have not defined the word "Profit". Generally speaking
"The Profit of Business during a given period is the excess of income over expenditure for
the period." It may arise from other sources.
There are three concepts of profit:
1. Economic Profit
2. Accounting Profit
3. Social Profit
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Finance Project Report on Profitability Analysis of SMSIL
Job or project profitability is key of your business success. So if you bill clients based
on time spent, then Timesheet will be a key part of maximizing project profitability, as it will
help to avoid missing time recording and ensuring that all time spent on the job gets recorded.
It will also help ensure that time is recorded regularly - not weeks later when recall can be
sketchy and the chances of inaccurate recording and under billing are high.
If you bill projects based on quotations or estimates, a negotiated fee or list prices for
different types of project, it is still important to track time, costs and/or a "standard" or
"normal" fee, to provide you with project profitability analysis.
Using project profitability analysis is key to the long-term health of your business. You need
to be able to see whether or not you are achieving target profitability on projects - and if you
are not, you need to understand why.
To make these measurements, some Timesheet customers use "full cost" rates - which
exclude the profit element. Some use "standard charge" rates - which include the budgeted
overall profit percentage. In fact, some Timesheet customers use both
If you are just going to use one rate, we advise using "standard charge", as this will provide a
variance on most jobs, which can be expressed in percentage terms. With "full cost" rates,
greater discipline is required when reviewing
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Finance Project Report on Profitability Analysis of SMSIL
COMPANY PROFILE:
SMS Infrastructure Ltd is one of the pioneer infrastructure company in India having
core competency in highway construction with an annual turnover of Rs 200.00 Crores (US $
45 Million). Presently we are executing two highway projects under National Highway
Authority of India involving flyovers, overpass / underpass bridges, tunnels and aqueduct
after having completed several projects successfully. We have also executed projects related
to Railways, Irrigation, Water Suply and Waste Management. We have also established an
overseas branch office in Addis Abeba and are in the process of participating in six tenders
with Ethiopian Roads Authority.
Since last 43 years of its existence, SMS has grown to become one of the largest
infrastructure companies in Central India managing the work professionally even though it is
closely held. SMS has been expanding its presence across the country and abroad and is
today present across more than 10 cities in India having branch offices and various site
offices together with an employee base of over 1300. We are among the first 500 unlisted
companies in the country in terms of turnover.
3
Late Shri Shaktikumar M. Sancheti Founder of the SMS Group
Finance Project Report on Profitability Analysis of SMSIL
Brief Journey Of SMSIL:
• 1963 - 1985:
• Founded by late Mr. Shantikumar M Sancheti.
Construction portfolio strengthened
• 1986 - 1988:
• Started country’s first Road BOT project with NHAI
• Added trading of Heavy Machinery spare parts to portfolio
• 1989 – 1996:
• Added Mining (1989) & Railway (1991) to portfolio
• 1997 - 2004:
• SMS Ltd. formed. Entered into Electrical (1997), Irrigation (1998) & Toll
(2000)
• Completed 5th highest density corridor (2002)
• 2004-2005:
• Global brand formed - SMS Infrastructure Limited
• Started Enviro Division (2004)
• 2006:
• Started owning mines in its own name
• Best Structure Award for Twin Tube Tunnel and Viaduct on KatrajGhat
Bypass Road
• 2007-2008:
• Won largest Uranium Mining project from UCIL
• Won First Hydro project and made entry into Clean Energy
• Enter into Urban development
• 2009:
• World‘s first largest plasma gasification Waste-to-Energy plant commissioned
• Awarded Coal Mine with CMDC
• Started coal export from Indonesia
• 2010:
• SMS's Mumbai Bio-Medical Waste portfolio becomes biggest in Asia
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Finance Project Report on Profitability Analysis of SMSIL
The main focus of our business is in
SMS Infrastructure Ltd. is a company with good track record of Quality & Technical engineering
capability since 1964. We are Central India’s largest professionally managed Infrastructure Company
which figures in the list of first 500 unlisted Companies of India, Limca Book of Records etc. and
have been awarded with several National Awards for its State of art work in field of Infrastructure.
Company has expertise in the Development of following infrastructure Projects:-
Highways Constructions
Mining
Railways
Power
Irrigation
Environment
Urban and Rural Development
PPP projects
SMS Today - Proven track record for 46+ years
1100+ crore in turnover
1800+ employees, 2800+ contracted labor force
Major 53 Government& PSU clients
Footprints in India, Singapore, Ethiopia & Indonesia
Among the first 500 unlisted companies in India by turnover
Focus Areas:
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Finance Project Report on Profitability Analysis of SMSIL
COMPANY OVERVIEW
SMS Infrastructure Limited operates as an infrastructure company. It engages in the
execution and the construction of various projects in various segments, such as construction
of roads and toll management, mining, urban and rural development, and PPP projects. The
company also provides environment projects, including hazardous, bio-medical, waste, and
municipal waste management projects; and transportation toll projects, such as construction
of toll plazas and collection of toll/user fees. In addition, it offers irrigation projects, such as
construction of earthen, masonry, concrete dams, lined and unlined canals, and pump houses;
construction of large diameter tunnels fabrication and erection of gates; and construction of
lift irrigation projects. Further, the company provides construction services for transportation
railways, including construction of broad gauge railway lines, broad gauge railway sidings,
railway tunnels, and R.O.Bs; and services for transportation highways, such as construction
of highways, flyovers, road tunnels, and bridges, as well as operation and maintenance of
highways. Furthermore, it offers power projects, such as construction/raising of ash bunds;
ash disposal and water recovery pipelines land development for power plants construction of
pump houses; and transmission lines and hydro power projects. SMS Infrastructure Limited
was founded in 1963 and is based in Nagpur, India.
6
Roads Irrigation Railways Tolls Roads O&M
Mining Electrical Enviro & Clean Energy
Urban Development
Others
Finance Project Report on Profitability Analysis of SMSIL
VISION:
To Contribute in our humble way to the gigantic task of nation building by diversified
activities adhering to the highest traditions of quality and ethics thus creating lasting value for
all the stakeholders.
MISSION:
We shall offer the highest level of customer satisfaction by consistently delivering innovative
solutions to customer needs using state-of-art technology, knowledge, skills and
commitments.
About SMSIL:
SMS Envocare is the group company promoted by SMS Infrastructure Ltd. In a short span of
time the company has emerged as one of the major Environmental Infrastructure
development company.
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Finance Project Report on Profitability Analysis of SMSIL
OBJECTIVES OF COMPANY:
-To provide specialized services & solutions to diversified Environmental Issues.
-To develop Common Solid as well as liquid waste management & disposal sites on
BOO, BOOT & EPC basis.
-To assist entrepreneurs in getting all legal & Environmental clearances right from
establishment to commissioning.
-To train industry for effective management of Effluent & Hazardous Waste.
-To provide Analytical services to the Industries.
-To improve the efficiency of the existing ETP by doing performance audit.
-To train industries on 3R (Reduce, Recycle & Reuse) concept.
The company believes in adopting the best eco-friendly technology available world over
for the scientific disposal of wastes. Hence in 2005-06 the company signed an agreement
with Westinghouse Corporation US (Now Alter NRG Corporation Canada) for destruction of
Incinerable Hazardous Waste by Plasma Gasification vitrification Technology. This state of
the art Technology is being used at the two TSDF Sites of the company.
Looking at the need of the hour SMS Envocare has started various other Environmental
Service that will help the Entrepreneurs in making this globe clean, Green & Ecofriendly.
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Finance Project Report on Profitability Analysis of SMSIL
BOARD OF DIRECTORS:
The company is managed by experienced and dynamic persons having vast knowledge in the field of infrastructure and mining.
THE MANAGEMENT:
HemantLodha Senior Vice President - Enviro& Clean Energy
SuhasNemade Vice President - Roads, Railway, Irrigation
Kaserneni R. Rao Vice President - Mining
9
Abhay H. Sancheti Chairman
Ajay S. Sancheti Vice Chairman & Managing Director
Anand S. Sancheti Joint Managing Director
Anil H. Sancheti Director (Technical)
DilipB.Surana Director (Technical)
Ajay Lakhotiya Director
Hiralal R. Patel Independent Director
Naresh N. Pugalia Independent Director
Anil Rathi Independent Director
Finance Project Report on Profitability Analysis of SMSIL
Rajiv B. Charde Vice President - Roads, Irrigation
Sandip J. Dhodapkar Associate Vice President - Commercial
DattatrayKinage Associate Vice President - Roads O&M, Tolls
Srikant D. Dahake General Manager – Electrical
S.K.Panigrahi General Manager - Finance
SMSIL Group of Companies:
Infrastructure Construction and Management
SMS Infrastructure Ltd.
SMS Infrastructure and Developers Ltd.
Mining
Veet Rag Homes Pvt. Ltd.
SMS Mine Developers Pvt. Ltd.
Pt. SMS Minerals International, Indonesia.
SMS Infrastructure Pte Ltd, Singapore.
Bhatgaon Mines Pvt. Ltd.
Bhatgaon Extension Mines Pvt. Ltd.
Real Estate
San Commercials Private Limited
MPA Infrastructure Private Limited
BSS Associates
Gorakshan Land Development Private Limited
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Finance Project Report on Profitability Analysis of SMSIL
Waste Management
Butibori CETP Pvt. Ltd
VidharbhaEnviro Protection Limited
Maharashtra Enviro Power Limited
SMS Envoclean Private Limited
SMS Waluj CETP P. Ltd.
SMS Vidhyut P. Ltd.
SMS Water Grace BMW Private Limited
SMS Envocare Limited
SMS Envoprotect Private Limited
Multilevel Car Parking
SMS Parking Solutions Private Limited
Toll Management
SMS Shivnath Infrastructure P Ltd.
Valencia Constructions P Ltd.
Patwardhan Infrastructure P Ltd.
RCCL Infrastructure Ltd.
SMS Tolls and Developers Ltd.
Hospitality
Fountain Sizzlers and Bistro a unit of Veet Rag Developers Pvt. Ltd
Manufacturing and Trading
Rishik Motors Private Limited
Sanbro Spares Private Limited
Finance and Consultancy
San Finance Corporation
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Finance Project Report on Profitability Analysis of SMSIL
Our JV Partners
Khare and Tarkunde Infrastructure Pvt. Ltd.
Solar Industries Ltd.
D Thakkar Constructions Pvt. Ltd.
S N Thakkar Constructions Pvt. Ltd
BholasinghJaiprakash Construction Pvt. Ltd.
Shreenath Enterprises Ltd.
Major Environmental projects of the company:
- Two state of the art Common Hazardous Waste Treatment, Storage, Disposal Facilities at
Ranjangaon, near Pune & Butibori near Nagpur.
- Three Common Effluent Treatment Plants at Butibori, near Nagpur, Kagal near Kolhapur
&Waluj near Aurangabad
- Four Common Bio-Medical Waste Treatment & Disposal Facilities at Delhi , Mumbai ,
Aurangabad & Nasik.
Business Sectors:
SMS Infrastructure Limited is distinguished by its vision, optimism and confidence it
displays in taking on the toughest of challenges.
We execute the construction of technically complex and high value projects across segments
such as Construction of Roads and Toll Management, Mining, Railways, Power, Irrigation,
Environment, Urban and Rural Development and PPP projects. These projects exhibit SMS's
premier trademark – which is quality, excellence, and precision, turning them into
engineering and construction marvels in their respective categories.
ENVIRONMENT
Hazardous Waste Management
Bio-Medical Waste Management
Waste Water Management
Municipal Waste Management
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Finance Project Report on Profitability Analysis of SMSIL
IRRIGATION
Construction of Earthen, Masonry, Concrete Dams and Construction of Lined, Unlined canals
Construction of Pump Houses
Construction of Large Diameter Tunnels Fabrication and Erection of Gates
Turnkey Construction of Lift Irrigation
TRANSPORTATION RAILWAYS
Construction of Broad Gauge Railway Lines
Construction of Broad Gauge Railway Sidings
Construction of Railway Tunnels
Construction of R.O.B.
TRANSPORTATION HIGHWAYS
Construction of Highways
Operation and Maintenance of Highways
Construction of Bridges
Construction of Flyovers
Construction of Road Tunnels
POWER
Construction / Raising of Ash Bunds Ash Disposal and Water Recovery Pipelines Land Development For Power Plants
Construction of Pump Houses
220 /440KV Transmission Lines. Hydro Power Projects.
TRANSPORTATION TOLL
Construction of Toll Plazas Collection of Toll/User Fees
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Finance Project Report on Profitability Analysis of SMSIL
SMS ENVOCARE LTD:
SMS ENVOCARE LTD. is Group Company of SMS Infrastructure Ltd., Nagpur
engaged in providing Environmental Infrastructure projects and Consultancy Services. The
company has the expertise of providing total solutions for scientific treatment & disposal of
various types of wastes solid as well as liquid by the latest eco-friendly technologies.
SMS ENVOCARE LTD has dedicated team of highly professional well-experienced
personnel having rich expertise in Environmental Sector.
Vision:
“To Create 'National Prominence' and 'International Presence' in Environmental
Infrastructure Projects & to Enrich the Nature for Better Tomorrow "
Mission:
" To exceed the expectations of all "
- Stakeholders
- Government
- Customers
- Employees
- Shareholders
- Lenders
- Suppliers
- Society
Projects of SMS EnvocareLdt.
1) Common Hazardous Waste Transportation, Storage and Disposal Facility:
14
Finance Project Report on Profitability Analysis of SMSIL
Hazardous Waste generally exhibits characteristics as ignitable (i.e. flammable),
oxidant, corrosive, toxic, radioactive , explosive has the potential to pose a substantial hazard
to human health or the environment when improperly treated, stored, transported or disposed
off. Hence proper treatment is necessary for this type of waste.
The company has developed two state of the art Common Hazardous Waste
Transportation, storage and disposal facilities at Ranjangaon near Pune &Butibori near
Nagpur
Plants:
Maharashtra Enviro Power Ltd., Pune.
VidharbhaEnviro Protection Ltd., Nagpur
Maharashtra Enviro Power Ltd.
Maharashtra Enviro Power Limited is a Special Purpose Vehicle promoted by SMS
Infrastructures Ltd. registered under companies' act 1956 with a target to BUILD, OWN, And
OPERATE & TRANSFER (BOOT), a Common Hazardous Waste Treatment, Storage and
Disposal Facility (CHWTSDF) at Ranjangaon, Pune.
Life of the project:
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Finance Project Report on Profitability Analysis of SMSIL
Project being on BOOT basis. MEPL will provide operational services for 20 years and
post monitoring and maintenance services for 30 years i.e. total Life of project is 50 years
VidharbhaEnviro Protection Ltd.
VidharbhaEnviro Protection Limited is a Group Company promoted by SMS
Infrastructures Ltd. registered under Companies Act 1956, with a target to BUILD, OWN,
And OPERATE & TRANSFER (BOOT), a Common Hazardous Waste Treatment, Storage and
Disposal Facility (CHWTSDF) at Mandwa, Nagpur.
Demand of the Project.
The Hazardous Waste (Management & Handling) Rules, 1989 bar the industries from
dumping their solid wastes indiscriminately. At the same time they permit the industries to
dispose off their wastes in safe & secured manner. It has been made mandatory by the
government to dispose off Hazardous waste in systematic and scientific disposal way and
pollution control boards have been asked to ensure it. For systematic & scientific disposal of
solid wastes, a facility can be constructed where care is to be taken to avoid any negative
effects on the environment.
Benefits and Advantages of project
The proposed CHWTSDF facilitate better management of the industrial wastes. It is the showcase for other states for management of hazardous waste with additional
benefit of green and clean Environment.
It minimizes the pollution load on environment from industrial hazardous waste.
It generates green and clean power by recovering waste heat from PGVR.
Compliance with prescribed regulatory norms which in turn avert the risk of closure
on account of violation of rules
It reduces the number of hazardous waste sites in the area and also eliminates the
pollution potential
Possibility for recovery of material can be researched at common site.
The management of wastes is relatively easier & economically viable at common
facility.
Cost of environmental monitoring is less at common facility
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Finance Project Report on Profitability Analysis of SMSIL
In absence of expertise or availability of less expertise this route is confirmed to be
most viable and workable
Reduced environmental liability due to captive storage of hazardous waste in the
premises of industries
Better occupational health and safety at individual industry level
Prevention of natural resource contamination thereby improving overall
environmental status of the region
Competitive advantage in international markets vis-à-vis grading of the products on
environmental consideration.
(2) Common Bio-Medical Waste Tratement and Disposal Facility:
It comes from biological sources; common producers of biomedical waste include hospitals, health clinics, nursing homes, and medical research laboratories, offices of physicians & dentists, and home health care. .
The company has developed three state of the art Common Biomedical Waste
Treatment and disposal facilities at Mumbai, Delhi &Nashik.
Plants:
SMS Envoclean Pvt. Ltd., Mumbai SMS-Water grace BMW Pvt. Ltd., Delhi
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Finance Project Report on Profitability Analysis of SMSIL
SMS Envoclean Pvt. Ltd.
This company is a joint venture company of SMS Infrastructure Ltd. & Water grace
Products Pvt. Ltd. The company is engage in Collection, Transportation & disposal of the Bio
Medical waste being generated in the corporation limits of Mumbai. The Facilitator of this
facility is MCGM & the monitoring authority is Maharashtra Pollution Control Board. This
Facility is situated at Deonar.
SMS-Water grace BMW Pvt. Ltd.
A joint venture company of SMS Infrastructure Ltd. & Water Grace Products Ltd.
The company is responsible for the collection storage treatment & disposal of bio-medical
waste generated in the city of Delhi. This facility is located at Nilothi New Delhi. This plant
will be operational by Sept. 2010.
Objectives:
To collect & receive the BIOMEDICAL WASTE from HEALTH CARE
FACILITIES.
To ensure proper storage of the wastes as per their classification, characterization and
compatibility.
To analyze and decide the treatment and disposal scheme of wastes as per the
guidelines of MoEF, CPCB & MPCB.
To optimize the treatment and disposal cost by management practices and provide the
very economical services to the hospitals.
To register the all the health care facilities as the member of the CBMWTSDF.
To educate and make the individual health care facilities aware of storing the wastes
in scientific manner and comply with the applicable regulations.
To conduct the public awareness program.
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Finance Project Report on Profitability Analysis of SMSIL
(3) Common Effluent Treatment Plant:
Enormous quantities of industrial effluents from various industries are released in
environment causing pollution.CETP plays a major role in handling of these effluents
effectively to make environment safe and healthy..
The company has developed three state of the art Common Effluent Treatment Plants
at Butibori near Nagpur, Kagal near Kolhapur &Waluj near Aurangabad.
Plants:
Butibori CETP Pvt. Ltd., Nagpur Kagal CETP Pvt. Ltd., Kolhapur SMS Waluj CETP Pvt. Ltd., Aurangabad
Butibori CETP Pvt. Ltd.
A SPV of SMS Infrastructure Ltd &Butibori Manufacturers Association. The
objective of this company is to treat the Effluent being generated by the Industries in the
MIDC Butibori& MIDC Hingna and meeting the disposal norms as specified by the
Maharashtra Pollution Control Board. In this facility MIDC is the facilitator & MPCB is the
monitoring authority. Capacity of CETP is about 5 MLD.
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Finance Project Report on Profitability Analysis of SMSIL
Kagal CETP Pvt. Ltd.
A turnkey project of 10 MLD has been done by SMS Infrastructure Ltd at Kagal
Industrial Area. The objective of this CETP is to treat the Effluent being generated by the
Industries in the Kagal Industrial Area & meet the disposal norms as specified by the
Maharashtra Pollution Control Board. In this facility MIDC is the facilitator & MPCB is the
monitoring authority. Capacity of CETP is 10 MLD with 20% overloading capacity.
SMS Waluj CETP Pvt. Ltd.:
A SPV of SMS Infrastructure Ltd &Waluj Industrial Association. The objective of
this company is to treat the Effluent being generated by the Industries in the Waluj Industrial
Area & meeting the disposal norms as specified by the Maharashtra Pollution Control Board.
In this facility MIDC is the facilitator & MPCB is the monitoring authority. Capacity of
CETP is about 10 MLD.
Benefits and Advantages of project:
Wastewater of individual industries often contains significant concentration of
pollutants and to reduce them by individual treatment up to the desired concentration,
become techno-economically difficult. The combined treatment provides a better and
economical option because of the equalization taking place in the CETP.
Other benefits of common treatment include scarcity of land at the industry's level and
a comparatively easier availability of professional and trained staff for the operation
of CETP, which can otherwise be difficult, at the individual industry level.
For the regulatory authorities also, common treatment facility offers a comparatively
easier means of ensuring compliance of stipulated norms.
Cost of Laboratory analysis & plant operation is less at common facility than the cost
expenditure of individual units together Better occupational health and safety at
individual industry level.
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Finance Project Report on Profitability Analysis of SMSIL
OBJECTIVES:
1. To study the Profitability of SMS Infrastructure Limited.
2. To study the reliable profitability information about SMSIL.
3. To study the past result in respect of earning & financial profit of the firm, & to help
in forecasting the future results.
4. The analysis would be enable the present & future earning capacity & the profitability
of the firm
21
Finance Project Report on Profitability Analysis of SMSIL
HYPOTHESIS:
1. The firm was profited since last 3 year.
2. The expectations are quite high regarding the overall performance of the firm.
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Finance Project Report on Profitability Analysis of SMSIL
LIMITATIONS:
1. The study is SMS Infrastructure Limited only.
2. The span of study is also limited for the year 2007-08, 2008-09& 2009-2010.
3. College has allotted only 45 days for Project study.
4. The reliability of analysis depends on the accuracy of the figure used in the
financial statement.
23
Finance Project Report on Profitability Analysis of SMSIL
RESEARCH METHODOLOGY:
RESEARCH METHODOLOGY:
Methodology is defined as
1. "the analysis of the principles of methods, rules, and postulates employed by a
discipline
2. "the systematic study of methods that are, can be, or have been applied within a
discipline
3. "A particular procedure or set of procedures.
4. Concept
It should be noted that the word "methodology" is frequently used when "method" would
be more accurate. (This is a classic example of word inflation.) For example, "Since students
were not available to complete the survey about academic success, we changed our
methodology and gathered data from instructors instead". In this instance the methodology
(gathering data via surveys, and the assumption that this produces accurate results) did not
change, but the method (asking teachers instead of students) did.
Methodology includes the following concepts as they relate to a particular discipline or
field of inquiry:
1. a collection of theories, concepts or ideas;
2. comparative study of different approaches; and
3. Critique of the individual methods.
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Finance Project Report on Profitability Analysis of SMSIL
RESEARCH PROCESSES:
Scientific Research:
Generally, research is understood to follow a certain structural process. Though step order
may vary depending on the subject matter and researcher, the following steps are usually part
of most formal research, both basic and applied:
Formation of the topic
Hypothesis
Conceptual definitions
Operational definitions
Gathering of data
Analysis of data
Test, revising of hypothesis
Conclusion, iteration if necessary
A common misunderstanding is that by this method a hypothesis can be proven or
tested. Generally a hypothesis is used to make predictions that can be tested by observing
the outcome of an experiment. If the outcome is inconsistent with the hypothesis, then the
hypothesis is rejected. However, if the outcome is consistent with the hypothesis, the
experiment is said to support the hypothesis. This careful language is used because
researchers recognize that alternative hypotheses may also be consistent with the
observations. In this sense, a hypothesis can never be proven, but rather only supported
by surviving rounds of scientific testing and, eventually, becoming widely thought of as
true (or better, predictive), but this is not the same as it having been proven. A useful
hypothesis allows prediction and within the accuracy of observation of the time, the
prediction will be verified. As the accuracy of observation improves with time, the
hypothesis may no longer provide an accurate prediction. In this case a new hypothesis
25
Finance Project Report on Profitability Analysis of SMSIL
will arise to challenge the old, and to the extent that the new hypothesis makes more
accurate predictions than the old, the new will supplant it.
HISTORICAL:
The historical method comprises the techniques and guidelines by which historians
use historical sources and other evidence to research and then to write history. There are
various history guidelines commonly used by historians in their work, under the headings of
external criticism, internal criticism, and synthesis. This includes higher criticism and textual
criticism. Though items may vary depending on the subject matter and researcher, the
following concepts are usually part of most formal historical research:
Identification of origin date
Evidence of localization
Recognition of authorship
Analysis of data
Identification of integrity
Attribution of credibility
Research Methods:
The goal of the research process is to produce new knowledge, which takes three main
forms (although, as previously discussed, the boundaries between them may be fuzzy):
Exploratory research, which structures and identifies new problems
Constructive research, which develops solutions to a problem
Empirical research, which tests the feasibility of a solution using empirical evidence
Research can also fall into two distinct types:
Primary research
Secondary research
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Finance Project Report on Profitability Analysis of SMSIL
Primary Research:
Primary research also called field research involves the collection of data that does
not already exist. This can be through numerous forms, including questionnaires and
telephone interviews amongst others. This information may be used in such things as
questionnaires, magazines, and Interviews
The term is widely used in market research and competitive intelligence.
May be very expensive because many people need to be confronted.
By the time the research is complete it may be out of date.
People may have to be employed or avoid their primary duties for the duration of the
research.
People may not reply if emails or letters are used.
Secondary Research:
Secondary research involves the summary, collation and/or synthesis of existing
research rather than primary research, where data is collected from, for example, research
subjects or experiments.
The term is widely used in market research and in medical research. The principle
methodology in medical secondary research is the systematic review, commonly using meta-
analytic statistical techniques, although other methods of synthesis, like realist reviews and
meta-narrative reviews, have been developed in recent years.
Secondary research can come from either internal or external sources.
27
Finance Project Report on Profitability Analysis of SMSIL
PRIMARY DATA:
1. The primary data is collected to personal contact with SMSIL
2. The data is from the employee of Firm & to guided very well & full support of mangers.
SECONDARY DATA:
1. The secondary data is collected through web, magazines, journals & annual report of
the firm.
2. The secondary data is collected from the book or catalog of SMSIL.
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Finance Project Report on Profitability Analysis of SMSIL
SMS INFRASTRUCTURE LIMITED BALANCE SHEET AS AT
MARCH 31st 2008
PARTICULARS SCHEDULE AS AT 31-03-2008 AS AT 31-03-2007Rs.'000 Rs. '000
SOURCES OF FUNDS:SHAREHOLDERS FUND:la) Share Capital 1 94,909.48 93,559.32b) Reserves & surplus 2 12,15,427.99 9,36,658.40
TOTAL 13,10,337.47 10,30,217.72BORROWED FUNDS:a) Secured loans 3 27,72,544.43 16,48,743.42
27,72,544.43 16,48,743.42DEFERRED TAX LIABILITY 27,995.00 24,090.50
TOTAL 41,10,876.90 27,03,051.64
APPLICATIONOF FUNDSFIXED ASSETS: 4a) Gross Bill 15,23,704.07 10,08,315.69b) Less Depreciation (4,59,842.57) (3,52,350.10)c) Net Block 10,63,861.50 6,55,965.59Capital WIP 6,832.84 -
TOTAL 10,70,694.34 6,55,965.59
INVESTMENTS 5 4,76,178.85 3,74,493.56
CURRENTASSETS LOANS AND ADVANCES 6
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Finance Project Report on Profitability Analysis of SMSIL
a) Work In Progress 8,82,064.12 6,84,523.19b) Bills Receivable 11,36,138.42 6,67,799.20c) Cash & Bank Balances ' 4,77,629.16 4,80,942.35d) Loans& Advances 4,83,630.54 3,16,148.34
TOTAL 29,79,462.24 21,49,413.08Less:CURRENT LIABILITIES &PROVISIONS 7a] Current Liabilities 3,86,864.10 4,66,871.51b) Provisions 28,594.41 6,076.56
TOTAL 4,15,458.51 4,72,948.07NET CURRENT ASSETS 25,64,003.73 16,76,465.01
Significant Accounting Policies & Notes 14 _ _Forming part of the Accounts _ _
Cash Flow Statement 15
______________________
________________
TOTAL 41,10,876.92 27,06,924.16
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Finance Project Report on Profitability Analysis of SMSIL
SMS INFRASTRUCTURE LIMITED BALANCE SHEET AS AT
MARCH 31st 2009:
PERTICULARS SCHEDULE AS AT 31-03-2009 AS AT 31-03-2008Rs. '000 Rs. '000
SOURCESOF FUNDS: SHAREHOLDERSFUND:a Share Capital 1 95,370.51 94,909.48b} Reserves& surplus 2 14,53,655.60 12,15,427.99
15,49,026.11 13,10,337.47BORROWED FUNDS:a} Secured Loans 27,43,435.03 27,72,544.43
27,43,435.03 27,72,544.43 DEFERRED TAX LIABILITY 25,466.27 27,995.00
TOTAL 43,17,927.41 41,10,876.90APPLICATION OF FUNDS 4 FIXEDASSETS:a) Gross Block 17,31,009.59 15,23,704.07b) Less Depreciation 6,17,007.86 4,59,842.57c) Net Block 11,14,001.73 10,63,861.50Capital WIP - 6,832.84TOTAL 11,14,001.74 10,70,694.34
INVESTMENTS: 5 5,08,297.15 4,76,178.85
CURRENT ASSETS LOANS AND ADVANCES: 6a) Work In Proaress 13,24,224.06 8,82,064.12b) Bills Receivable 16,73,201.18 11,36,138.42C) Cash&BankBalances' 4,08,066.41 4,77,629.16d) Loans & Advances 4,49,520.46 4,83,630.54
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Finance Project Report on Profitability Analysis of SMSIL
TOTAL 38,55,012.11 29,79,462.24Less:CURRENT LIABILITIES & PROVISIONS 7a] Current Liabilities 11,09,548.19 3,86,864.10b} Provisions 49,835.39 28,594.41
11,59,383.58 4,15,458.51
NET CURRENTASSETS 26,95,628.53 25,64,003.73
Significant Accounting Policies & Notes 14 _ _Forming part of the AccountsCash Flow Statement 15 _ _
_______________________
______________________
TOTAL 43,17,927.42 41,10,876.92
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Finance Project Report on Profitability Analysis of SMSIL
SMS INFRASTRUCTURE LIMITED BALANCE SHEET AS AT MARCH 31st 2010
sr.no. PERTICULARS SCHEDULE
AS AT 31.03.2011
AS AT 31.03.2010
1SOURCESOF FUNDS:
2 ShareHolder's Funds
Share Capital 1
953.71
953.71
Reserves&Surplus 2
22,375.34
14,536.56 23,329.05 15,490.27
3 LoanFunds 3
Secured Loans
28,453.40
27,434.36 28,453.40 27,434.36
4Deferred TaxLiability(Net)
181.85 254.60
Total 51,964.30 43,179.23
5APPLICATIONOF FUNDS
FixedAssets 4
Gross Block
19,253.17
17,310.10
33
Finance Project Report on Profitability Analysis of SMSIL
Less:Depreciation
(7,996.36)
(6,170.08)
Net Block 11,256.81 11,140.02
6 Investments 5 12,134.22 5,182.08
7Current Assets, Loan land Advances 6
WorkIn Progress
11,783.96
13,242.24
Sundry Debtors15,653.40
16,732.01
Cash&BankBalances
4,615.91
4,080.66
Loans &Advances
8,563.67
4,396.11 40,616.94
38,451.02
8
Less: Current liabilities&Provisions 7
Current Liabilities
11,987.35
11,095.47
9 Provisions
56.32
498.35 12,043.67
11,593.82
10 Net Current Assets 28,573.27 26,857.20
TOTAL 51,964.30 43,179.30
34
Finance Project Report on Profitability Analysis of SMSIL
FINANCIAL CORNER:
Stay up-to-date with the latest financial facts and figures, All Figures in INR Crore
Sr. No. Particulars 2007-2008 2008-2009 2009-2010
1 Turnover 447.19 596.86 812.81
2 Other Income 16.67 3.96 17.94
3 PBDIT 57.08 84.40 170.33
4 Interest 27.68 42.15 48.00
5 Depreciation 12.48 16.42 18.60
6 Tax 6.83 3.74 12.17
7 PAT 10.09 22.09 91.55
8 Paid up Share Capital 9.49 9.54 9.54
9 Reserves & Surplus 121.54 145.37 223.75
10 EPS (in Rs.) 10.63 23.16 96.00
35
Finance Project Report on Profitability Analysis of SMSIL
FINANCIAL PERFORMANCE – CONSOLIDATED
36
Finance Project Report on Profitability Analysis of SMSIL
FINANCIAL PERFORMANCE – CONSOLIDATED
Where,
EV= Enterprise Value
PAT= Profit after Taxes
37
2007-2008; Turnover; 4822
Turnover, 2008-09 7322
Turnover, 2009-2010, 11179
E/V, 2007-2008,
899
E/V,2008-09,
1173
E/V,2009-2010,
2127
PAT, 2007-08, 262
PAT,2008-09, 254
PAT, 2009-10,
995
f(x) = 588.0799536545 x + 185.695111794R² = 0.88047387830743
Turnover E/VLinear (E/V) PAT
Finance Project Report on Profitability Analysis of SMSIL
Interpretation:
Above chart shows that turnover of the company is increase by year to year. Enterprise value is increase 899 to 2127 for the year 07-08 to 09-10.Also profit after tax is decrease next year but is increase in 09-10.
But when we compare the 3years performance then we easily see that current profit increase in current year as compare to last year.
FINANCIAL PERFORMANCE – CONSOLIDATED
Where,
ROA= Return On Assets
38
ROA,4% ROE,
3%
ROA, 10%
2007-2008; ROE; 17% ROE, 2008-09, 18%
ROE,2009-10, 70%
ROCE,, 5% ROCE,
4%
ROEC, 14%
f(x) = 0.16 x − 0.05R² = 0.702666648982276
ROA ROELinear (ROE) ROCE
Finance Project Report on Profitability Analysis of SMSIL
ROE= Return On Equity
ROCE= Return On Capital Employed
Above calculation shows that ROA, ROCE, increase in 1st year & decrease in 2nd year, but in 3rd year its shows the higher change (increase) as compare to 1st& 2nd year. The ROE is increase year by year.
BALANCED SECTORIAL PERFORMANCE - COMPETITIVE & RISK MITIGATED PORTFOLIO
39
Finance Project Report on Profitability Analysis of SMSIL
2007-2008 2008-2009 2009-2010
Urban Develop-ment
45.459224 47.96977 735.050671
From JV's*
0 951.508422 2355.32836
Enviro & Clean En-ergy
717.143677 867.176536 451.163737
Electrical 676.270347000001
578.648645 1541.480984
Mining 34.799828 245.323056 397.369357
Tolls 1267.355481 965.99368 1239.2269
Railways 49.339973 374.339431 971.468516999999
Irrigation 601.069535 1442.735257 1879.051643
Roads & O & M
1430.979836 1858.502534 1609.092191
1,000
3,000
5,000
7,000
9,000
11,000IN
R M
illio
n
The above chart shows that the projects of SMSIL (million) at every year.
STRONG ORDER BOOK (WORKS IN HAND)-LONG
SUSTAINED CASH INFLOWS
40
* Where stake of SMSIL is more than 51%Total 4,822
7,332 11,179
Finance Project Report on Profitability Analysis of SMSIL
2007-2008 2008-2009 2009-2010
Others 987 992 319
Urban Development 0 0 160
Enviro & Clean Energy 1365 1762 1373
Electrical 802 1744 5009
Mining 985 7185 12395
Tolls 800 560 504
Railways 0 0 1383
Irrigation 3530 3744 14924
Roads & O & M 4740 4761 3659
2500
7500
12500
17500
22500
27500
32500
37500
INR
Mill
ion
The above chart shows the cash flow of the company’s major project, for the last three years.
CONCLUSION:
1) Conclusion of this project is to understand, what is Profit?
41
Total 13,209 20,748 39,726
Finance Project Report on Profitability Analysis of SMSIL
2) The Profitability analysis is the very important in financial.
3) Profitability statement has calculated as end of financial year (31st March
or 31st December).
4) With the help of this project we have to understand the profitability
statement at easy way.
BLIBLIOGROPHY
Website Visited:
42
Finance Project Report on Profitability Analysis of SMSIL
1. www.smsil.co.in
Book Referred:
2. Management Accounting (Bhagwati&Pillai)
43