SUB: ACCOUNTING AND FINANCIAL MANAGEMENT IVRCL and infrastructure pvt Ltd SUBMITTED TO: DR. D.R.

PATEL BY: SHAIKH ADNAN CP1812

MASTER OF TECHNOLOGY CONSTRUCTION PROJECT MANAGEMENT CEPT UNIVERSITY AHMEDABAD

THE COMPANY (IVRCL)

THE COMPANY (IVRCL)

INTRODUCTION The company IVRCL has its Registered as well as corporate office in Hyderabad, Andhra Pradesh. Strongly entrenched with proven domain knowledge, experience and credentials, IVRCL operates in the following infrastructure sectors: Water & Environment Transportation Buildings Power

Milestones in the making of a giant:

Commercial operations since 1990

Established itself as a premier EPC & LSTK Service Provider with front-end engineering capabilities in 1990 Achieved Group turnover of 1 Billion USD in less than two decades of our operations Foray into BOT/BOOT/DBOOT projects since 2001 Achieved a Turnover of around Rs. 37000 million / USD 900 million and a net worth of Rs. 16000 million / USD 400 million in less than two decades of operations.

MISSION & OBJECTIVES Core values At IVRCL, we have dedicated ourselves to affecting continual improvement in all fields of our business. Quality forms an integral part of all our deliverables and is the primary driving force. Mission To become a leader in infrastructure business by providing total solutions Quality practices at IVRCL effectively blend people's skills with process tools at every stage of the project life cycle to provide state-of-the-art solutions.

Objectives To build a better world by:

Meeting ever growing challenging requirements in todays competitive world through strong quality systems Creating a dedicated and confident work force through continual development process Adding value to the investors

CORPORATE STRUCTURE Chairman & Managing Director Executive Director (Finance) & Group CFO Executive Director

VP - Finance

JGM (IT)

Sr. VP - Finance

VP (Commercial)

Group Head (HR & Admin)

Director (Business Development & Corporate Strategy)

Company Secretary

Director - Technical

Chief Operating Committee Delhi Regional Head COO - Water

Pune Regional Head

COO - Transportation

Chennai Regional Head

HEAD - B & IS

Kolkata Regional Head

COO - Power

Head - Design

COO - PMC

ENGINEERING AND DESIGN CAPABILITIES Engineering and design capabilities are IVRCL's time tested strengths in executing turnkey projects. The Companys competence and extensive experience in all the sectors of infrastructure industry are exemplary.

Strong in-house Design capabilities Up-to-the-minute Technologies In-house Design center Design Software STAAD, STRUD, Surge Analysis Program, Micro Drainage. Smart Plant P& ID Softeck Estimate LOOPS AUTOCAD; MS Projects

Design services

Front-end Engineering and Design Aerial Surveys, Satellite Imagery Geological, Geophysical Surveys Soil, Hydrological Surveys Topographical, Climatological Surveys Architectural, Engineering, Industrial Design Soil Mechanics & Foundation Engineering Quantity Surveying, Costing Estimation, Preparation of Contract Structural Engineering Process Engineering - Conventional and advanced technology (Membrane) based Water and Waste Water treatment plants Civil Works Rehabilitation Project Monitoring & Evaluation Institutional Strengthening/Restructuring Process Automation & Control - SCADA, telemetry Pumping System & Pipe works Detailed Projects Reports for Water & Environmental Infrastructures Projects

IVRCLS MAJOR CLIENTS IVRCLs expertise and proven credentials have led to a consistent increase in the client list and market presence. Some of our distinguished clients include: Public Sector Clients * Oil & Natural Gas Corporation Ltd * Bharat Heavy Electrical Ltd * National Thermal Power Corporation Ltd * Nuclear Power Corporation of India Ltd * Bharat Petroleum Corporation Ltd * Indian Oil Corporation Ltd Private Sector Clients * Birla Institute of Technology & Science * DLF Akruti Info Parks (Pune) Ltd * Brandix India Apparel City (Pvt.) Ltd * Telco Construction Equipment Company Ltd * TATA Projects Ltd * Jindal Steel & Power Ltd.

Central & State Government Clients * Airports Authority of India * Indian Railways * Ministry of Defence * Central Public Works Department * National Highways Authority of India * Konkan Railway Corporation Ltd * National Buildings Construction Corporation Ltd * Chennai Metropolitan Water Supply & Sewerage Board

* Gujarat Water Supply & Sewerage Board * Hyderabad Metro Water Supply and Sewerage Board * Karnataka Neevari Nigam Ltd * Delhi Jal Board * Gujarat Water Infrastructure Ltd SUBSIDIARY COMPANIES IVRCL ASSETS & HOLDINGS Ltd. HINDUSTAN DORR- OLIVER Ltd. CHENNAI WATER DESALINATION Ltd. ALKOR PETROO Ltd. IVRCL LOCATIONS IVRCLs operations cut across geographical frontiers of the sub-continent, with headquarters in Hyderabad and administrative offices in Chennai, Cochin, Bangalore, Pune, Kolkata, Jodhpur, Raipur (Chattisgarh), Ahmedabad, Margao (Goa), Jind (Haryana), Udhampur (J&K), Bilaspur (MP), Kotdwara (Uttaranchal) & New Delhi besides liaision offices setup near project sites.

Balance Sheet of IVRCL

------------------- in Rs. Cr. ------------------Mar '11 12 mths Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths Mar '07 12 mths

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth 53.40 53.40 0.00 0.00 1,931.13 2.84 1,987.37 53.40 53.40 0.00 0.00 1,797.02 2.84 1,853.26 26.70 26.70 0.00 0.00 1,781.03 2.85 1,810.58 26.70 26.70 0.42 0.00 1,576.01 2.85 1,605.98 25.93 25.93 0.00 0.00 1,292.94 2.85 1,321.72

Secured Loans Unsecured Loans Total Debt Total Liabilities

1,629.48 466.33 2,095.81 4,083.18 Mar '11 12 mths

1,268.81 344.52 1,613.33 3,466.59 Mar '10 12 mths

1,018.48 379.54 1,398.02 3,208.60 Mar '09 12 mths

578.79 489.06 1,067.85 2,673.83 Mar '08 12 mths

388.75 166.48 555.23 1,876.95 Mar '07 12 mths

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities 924.23 232.42 691.81 25.98 634.70 273.21 1,929.81 122.96 2,325.98 3,134.35 20.20 5,480.53 0.00 2,709.49 40.35 2,749.84 2,730.69 0.00 4,083.18 1,051.25 750.18 183.78 566.40 35.32 613.80 244.68 1,944.52 144.51 2,333.71 2,364.04 19.85 4,717.60 0.00 2,422.00 44.53 2,466.53 2,251.07 0.00 3,466.59 757.93 662.35 141.65 520.70 19.55 389.20 209.35 1,143.03 100.45 1,452.83 2,372.28 0.42 3,825.53 0.00 1,502.42 43.96 1,546.38 2,279.15 0.00 3,208.60 376.99 417.60 98.40 319.20 54.09 340.91 194.34 658.49 106.56 959.39 1,860.19 70.61 2,890.19 0.00 906.72 23.84 930.56 1,959.63 0.00 2,673.83 351.65 259.34 66.42 192.92 50.59 282.89 82.54 633.21 82.18 797.93 1,735.27 141.65 2,674.85 0.00 1,301.63 22.66 1,324.29 1,350.56 0.00 1,876.96 166.59

Book Value (Rs)

74.32

69.30

135.41

120.06

101.72

Ircon InternationalLtd Profit & Loss account Mar '11 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 522.21 0.00 166.19 17.02 0.00 2,116.2 0 0.00 2,821.6 645.79 0.00 148.54 1,826.60 0.00 283.29 0.00 2,904.22 637.34 0.00 108.68 0.00 51.14 1,688.50 0.00 2,485.66 481.45 0.00 90.66 0.00 3.25 1,234.97 0.00 1,810.33 272.29 0.00 74.20 0.00 11.93 1,022.54 0.00 1,380.96 3,175.3 3 0.00 3,175.3 3 78.82 7.68 3,261.8 3 3,152.88 0.00 3,152.88 64.03 -10.87 3,206.04 2,627.64 0.00 2,627.64 140.58 -46.76 2,721.46 1,902.69 0.00 1,902.69 118.17 -8.50 2,012.36 1,463.48 0.00 1,463.48 70.06 -17.19 1,516.35 ------------------- in Rs. Cr. ------------------Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths Mar '07 12 mths

2 Mar '11 12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 98.98 251.07 500.00 1,396.5 5 98.98 184.06 370.00 1,211.72 98.98 141.63 300.00 1,085.82 98.98 119.42 300.00 958.71 98.98 87.76 260.00 883.49 361.39 440.21 0.00 440.21 36.91 0.00 403.30 -18.94 384.36 136.15 248.51 2,299.4 1 0.00 49.49 8.07 Mar '10 12 mths 237.79 301.82 0.00 301.82 41.27 0.00 260.55 28.76 289.31 81.98 182.18 2,258.43 0.00 36.62 6.22 Mar '09 12 mths 95.22 235.80 0.00 235.80 44.19 0.00 191.61 -0.96 190.65 47.48 140.18 1,848.31 0.00 29.69 5.05 Mar '08 12 mths 83.86 202.03 0.00 202.03 41.17 0.00 160.86 5.25 166.11 47.93 118.20 1,328.88 0.00 29.69 5.05 Mar '07 12 mths 65.33 135.39 0.00 135.39 24.24 0.00 111.15 11.00 122.15 35.29 86.87 1,108.66 0.00 25.74 3.78

Key financial ratios Mar '11 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Liquidity And Solvency Ratios Current Ratio Quick Ratio Total Debt to Owners Fund Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio 1.27 1.15 --4.71 10.57 --6.13 1.35 1.16 0.00 -7.36 8.44 --6.42 1.27 1.04 0.00 -6.61 6.10 --5.42 1.23 1.13 0.00 -6.59 11.97 --4.00 1.27 1.19 0.00 17.13 8.93 16.36 6.96 -4.05 10.00 50.00 365.11 3,208.05 10.00 37.00 240.24 3,185.37 10.00 30.00 143.45 2,654.72 10.00 30.00 93.32 1,922.30 10.00 26.00 83.38 1,478.56 Mar '10 Mar '09 Mar '08 Mar '07

Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio

108.04

95.74

79.94

80.61

93.74

16.44 48.66

20.48 39.99

24.25 30.76

25.30 11.63

18.60 10.90

23.16 20.16 78.46

23.51 19.17 76.01

24.78 18.84 81.08

29.39 21.79 72.91

33.97 26.56 67.71

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

Earnings Per Share Book Value

251.07 1,396.55

184.06 1,211.72

141.63 1,085.82

119.42 958.71

87.76 883.49

LIQUIDITY RATIOS CURRENT RATIO CURRENT RATIO = (CURRENT ASSETS/CURRENT LIABILITIES) Current assets: Inventories, debtors, bills receivables, marketable securities, cash and bank balance. Current liabilities: Creditors, Bills payables, unpaid expenses, provisions for tax, proposed dividends and bank over- draft. Calculated values of Current Ratio for following years: For the year 2010-11:1.27 For the year 2009- 10: 1.35 For the year 2008- 09: 1.27 Calculated values of quick Ratio for following years: For the year 2010-11:1.15 For the year 2009- 10: 1.16 For the year 2008- 09: 1.04 PROFITABILITY RATIOS NET PROFIT RATIO NET PROFIT RATIO = (NET PROFIT X 100)/SALES Calculated values of Net Profit Ratio for following years: For the year 2010-11:1.27 For the year 2009- 10: 1.27 For the year 2008- 09: 4.45

RATE OF RETURN ON INVESTMENTS (ROI) ROI = (EBIT X 100)/TOTAL ASSETS EBIT: Earnings before interests and taxes Calculated values of ROI for two years: For the year 2009- 10: 8.66 For the year 2008- 09: 9.29

RATE OF RETURN ON EQUITY (ROE) ROE = (PROFITS FOR THE EQUITY X 100)/NET WORTH Profits for the equity: Net profits preference shares dividends Calculated values of ROE for two years: For the year 2009- 10: 14.20 For the year 2008- 09: 17.99 ASSET TURNOVER RATIO TOTAL ASSET TURNOVERRATIO TOTAL ASSET TURNOVERRATIO = (SALES/TOTAL ASSETS) Total assets: net fixed assets, investments and net working capital. Calculated values of Total asset turnover ratio for two years: For the year 2009- 10: 1.58 For the year 2008- 09: 1.55 NET FIXED ASSETS TURNOVER NET FIXED ASSETS TURNOVER = (SALES/NET FIXED ASSETS) Calculated values of Net fixed asset turnover ratio for two years: For the year 2009- 10: 7.32 For the year 2008- 09: 7.51 FINANCE STRUCTURE RATIOS DEBT- EQUITY RATIO

DEBT- EQUITY RATIO = (TOTAL LONG TERM DEBT/NET WORTH) Calculated values of Debt- equity ratio for two years: For the year 2009- 10: 0.87 For the year 2008- 09: 0.77

VALUATION RATIOS EARNING PER SHARE For year 2010-11:251.07 For year 2009-10:184.06 For year 2008-09:141.63 For year 2007-08:119.42 OBSERVATIONS All the observations are tabulated below as a summary of the observed ratios for the financial year 2009 and 2010 and 2011 RATIOS CURRENT RATIO QUICK RATIO NET PROFIT RATIO ROI ROE TOTAL ASSET TURNOVER RATIO NET FIXED ASSET TURNOVER RATIO DEBT EQUITY RATIO EARNING PER SHARE MARCH09 1.27 1.04 4.45 9.29 17.99 1.55 7.51 0.77 251.07 MARCH10 1.35 1.16 1.27 8.66 14.20 1.58 7.32 0.87 184.06 MARCH11 1.27 1.15 1.27 7.97 11.25 1.62 7.47 0.9 141.63

CONCLUSION The liquidity ratio and profitability ratio indicates that company is trying to meet its liability and the profits are varying and it comes out to be 1.27 in 2011. The average earning per share has decreased from Rs 251.07 in 2009-10 to Rs 141.63 per share in 2010-11.the return on investment and return on equity also gets decreased from 2009 to 2011 so companies profit get reduced compared to previous year However, the Management should make efforts to reduce the average recovery period to ensure better liquidity position.