Annexure-V- Cover Page for Academic Tasks

Course Code: ACC306 Course Title: FINANCIAL STATEMENT ANALYSIS

Course Instructor: DR. SACHIN

Academic Task No.: 1 Academic Task Title: ANALYSIS OF BUSINESS EFFICIENCY

Date of Allotment: 04.02.2021 Date of submission: 15.02.2021

Student’s Roll no: RQ4E12B50 Student’s Reg. no: 11916114

Evaluation Parameters: (Parameters on which student is to be evaluated- To be mentioned by students as
specified at the time of assigning the task by the instructor)

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student’s work or from
any other source except where due acknowledgement is made explicitly in the text, nor has any part been written
for me by any other person.

Student’s Signature: Sadan

Evaluator’scomments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: Max. Marks: ____________

Introduction

Ducon Infratechnologies Ltd. is a rapidly growing diversified technology company that operates in a variety of
business segments, to provide solutions and meet challenges in the digital and infrastructure business sectors.

In the infrastructure sector, Ducon provides complete FGD systems with turnkey responsibility, all across India
and in neighbouring regions for coal, HFO and pet coke fired power plants. Ducon provides limestone, seawater
and Dry Sorbet Injection type FGD systems and already has several operating FGD installations in India.
Company also executes projects in rural electrification, industrial environmental control & bulk material
handling areas.

In the digital sector, Ducon provides distribution services, network equipment setup & support, and plays and
important link between the vendor and the reseller. Ducon strives through its functions of Distribution,
Marketing Initiatives, Volume Procurement and Technical Support to create opportunities for sales and
profitability for our clients.

Ducon is set-up by a team of young and dynamic professionals with technical, marketing and sales know-how.
Ducon is built on very strong ethical and commercial fundamentals which will help it consistently grow.

Infrastructure Systems

Government of India recently came out with a notification on emission standards for coal based thermal power
plants, As per latest Government data, the total power generation in India till April 2015 stood at 272,687 MW,
out of which 165,236 MW came from coal-based power plants. Under the proposed norms the existing plants
would have to install FGD systems and all the new plants installed after January 2017 would also have to meet
global standards by installing FGD systems.
The Government of India, with promise of 24 X 7 Electricity to all by 2019, is providing Transmission &
Distribution through Government funding to the State Electricity Boards of up to INR 43,000 Crores for such
electrification projects.

Vision Statement

Delivering projects that meet international standards

Mission Statement

To undertake the construction business with a focus on becoming the leader while building excellence in every
aspect to meet customers' stringent requirements regarding quality, on-time delivery, safety and environmental
concerns. To build value for the organization in order to become a unique and distinct firm.\
Product and Services

 Flue Gas Desulfurization (FGD) Systems for Power Boilers

 Infrastructure, Steel Fabrication & Turnkey Construction
 Air Pollution Control - Ducon Environmental Systems
 Renewable Energy: Solar Power Plants

Board of Directors

Name Designation

Abhinav Anand Independent Director

Arun Govil Managing Director

Chandrasekhar Ganesan Executive Director

Darshit Parikh Co. Secretary & Compl. Officer

Harish Shetty Executive Director

Ratna Jhaveri Independent Director

Sudatta Subhankar Independent Director

Competitors

 Cerebra Int.
 Control Print
 D-Link India
 HCL Info
 TVS Electronics

Financial Statements
Ducon Infratechnologies Years »
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16

12
12 mths 12 mths 12 mths 12 mths
mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 10.47 10.47 7.84 7.84 7.84
Total Share Capital 10.47 10.47 7.84 7.84 7.84
Reserves and Surplus 68.95 68.11 64.40 62.12 18.34
Total Reserves and Surplus 68.95 68.11 64.40 62.12 18.34
Total Shareholders’ Funds 79.42 78.57 72.24 69.96 26.19
NON-CURRENT LIABILITIES
Long Term Borrowings 0.00 52.11 38.24 25.88 0.00
Deferred Tax Liabilities [Net] 0.00 0.12 1.04 1.00 0.78
Other Long Term Liabilities 8.58 15.18 17.82 18.73 0.00
Long Term Provisions 0.45 0.48 0.34 0.53 0.02
Total Non-Current Liabilities 9.03 67.89 57.45 46.15 0.80
CURRENT LIABILITIES
Short Term Borrowings 122.77 57.36 54.54 57.18 6.99
Trade Payables 51.43 55.37 62.09 56.65 0.52
Other Current Liabilities 13.39 12.59 10.39 11.51 0.18
Total Current Liabilities 187.60 125.32 127.02 125.34 7.69
Total Capital And Liabilities 276.04 271.79 256.72 241.44 34.67
ASSETS
NON-CURRENT ASSETS
Tangible Assets 0.64 1.09 1.75 2.55 3.13
Fixed Assets 0.64 1.09 1.75 2.55 3.13
Non-Current Investments 5.03 5.04 5.04 5.04 5.00
Long Term Loans And Advances 8.71 8.71 8.71 8.71 8.71
Other Non-Current Assets 0.00 0.00 0.00 0.00 0.02
Total Non-Current Assets 14.39 14.84 15.49 16.30 16.87
CURRENT ASSETS
Inventories 0.00 5.04 5.03 4.96 4.46
Trade Receivables 250.19 234.01 216.58 200.08 11.86
Cash And Cash Equivalents 6.42 12.01 12.86 12.85 1.48
Short Term Loans And Advances 0.24 0.28 0.61 1.11 0.00
OtherCurrentAssets 4.81 5.60 6.13 6.14 0.00
Total Current Assets 261.65 256.95 241.22 225.14 17.80
Total Assets 276.04 271.79 256.72 241.44 34.67
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 42.72 6.10 3.70 48.00 0.01
CIF VALUE OF IMPORTS
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 0.00 0.00 0.00 20.85 0.00
REMITTANCES IN FOREIGN CURRENCIES FOR
DIVIDENDS
Dividend Remittance In Foreign Currency - - - - -
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods - - - - -
Other Earnings - - - 24.06 -
BONUS DETAILS
Bonus Equity Share Capital - - - - -
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market
- - - - -
Value
Non-Current Investments Unquoted Book
5.03 5.04 5.04 5.00 5.00
Value
CURRENT INVESTMENTS
Current Investments Quoted Market Value - - - - -
Current Investments Unquoted Book Value - - - - -

Ducon Infratechnologies
Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar
Mar 19 Mar 18 Mar 17 Mar 16
20
 12
12 mths 12 mths 12 mths 12 mths
mths

INCOME
Revenue From Operations [Gross] 380.93 394.26 415.00 398.05 32.52
Revenue From Operations [Net] 380.93 394.26 415.00 398.05 32.52
Total Operating Revenues 380.93 394.26 415.00 398.05 32.52
Other Income 0.62 0.86 0.95 1.00 0.11
Total Revenue 381.56 395.12 415.95 399.05 32.63
EXPENSES
Cost Of Materials Consumed 357.69 361.27 394.97 374.36 0.00
Operating And Direct Expenses 0.00 0.00 0.00 0.00 29.90
Changes In Inventories Of FG,WIP And
0.00 0.00 0.00 0.00 -0.48
Stock-In Trade
Employee Benefit Expenses 4.09 5.31 4.51 3.87 0.52
Finance Costs 10.78 10.15 7.01 6.91 0.82
Depreciation And Amortisation Expenses 0.50 0.71 0.81 1.49 0.85
Other Expenses 2.34 9.48 5.16 4.85 0.57
Total Expenses 375.41 386.92 412.44 391.47 32.18
Mar
Mar 19 Mar 18 Mar 17 Mar 16
20

12
12 mths 12 mths 12 mths 12 mths
mths

Profit/Loss Before Exceptional,

6.15 8.20 3.51 7.58 0.45
ExtraOrdinary Items And Tax
Profit/Loss Before Tax 6.15 8.20 3.51 7.58 0.45
Tax Expenses-Continued Operations
Current Tax 0.37 2.79 1.18 3.04 0.06
Deferred Tax 0.12 -0.92 0.00 -0.03 0.01
Total Tax Expenses 0.49 1.86 1.18 3.01 0.07
Profit/Loss After Tax And Before
5.65 6.33 2.33 4.57 0.39
Extraordinary Items
Profit/Loss From Continuing
5.65 6.33 2.33 4.57 0.39
Operations
Profit/Loss For The Period 5.65 6.33 2.33 4.57 0.39
Mar
Mar 19 Mar 18 Mar 17 Mar 16
20

12
12 mths 12 mths 12 mths 12 mths
mths

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 0.08 0.60 0.29 0.58 0.05
Diluted EPS (Rs.) 0.08 0.60 0.29 0.42 0.05
VALUE OF IMPORTED AND INDIGENIOUS RAW
- - - -
MATERIALS
STORES, SPARES AND LOOSE TOOLS - - - -
DIVIDEND AND DIVIDEND PERCENTAGE - - - -

Profitability Analysis

2019-20

 Return on Equity (R.O.E)

Net Income = 5.65 Shareholder’s Equity = 79.42

R.O.E = Net Income/Shareholder’s Equity

5.65/79.42
=0.0711 or 7.11%

 Return on Assets (R.O.A)

Net Income = 5.65 Total Assets = 276.04

R.O.A = Net income/Total Assets

5.65/276.04
= 0.0204 or 2.04 %

 Earnings Per Share (E.P.S)

Net Income= 5.65 Number of Shares=117

E.P.S= Net income-Preference Dividend/Number of Shares

= 5.65-0/117
=0.048 or 4.82%

 Dividend Pay-out Ratio

Dividend Paid = Nil Net Income= = 5.65

D.P.R = Dividend Paid/ Net Income

=Nil, Though the company is reporting repeated profits, it is not paying out dividend.

2019-18

 Return on Equity (R.O.E)

Net Income= 6.33 Shareholder’s Equity= 78.57

R.O.E= Net Income/Shareholder’s Equity

= 6.33/78.57
=0.0805 or 8.05 %

 Return on Assets (R.O.A)

Net Income=6.33 Total Assets=271.79

R.O.A= Net Income/Total Assets

 6.33/271.79
=0.023 or 2.32 %

 Earnings Per Share (E.P.S)

Net Income=6.33 Number of Shares=675

E.P.S= Net Income-Preference Dividend/Number of Shares

=6.33-0/675
=0.0093 or 0.93%

 Dividend Pay-out Ratio

Dividend Paid= Nil Net Income=6.33

D.P.R= Dividend Paid/ Net Income

=Nil, Though the company is reporting repeated profits, it is not paying out dividend.

2018-17

 Return on Equity (R.O.E)

Net Income= 2.33 Shareholder’s Equity= 72.24

R.O.E = Net Income/ Shareholder’s Equity

= 2.33/72.24
= 0.0322 or 3.22 %

 Return on Assets (R.O.A)

Net Income= 2.33 Total Assets= 256.72

R.O.A = Net Income/ Total Assets

= 2.33/256.72
= 0.0090 or 0.90 %

 Earnings Per Share (E.P.S)

Net Income= 2.33 Number of Shares=104

E.P.S=Net Income-Preference Dividend/ Number of Shares

=2.33-0/104
=0.0224 or 2.24 %
  Dividend Pay-out Ratio

Dividend Paid = nil Net income= 2.33

D.P.R= Dividend Paid/ Net Income

=Nil, Though the company is reporting repeated profits, it is not paying out dividend.

Competitor Analysis

Cerebra Int

Particulars Formula Calculation Ratio

Return on Investment (R.O.I) EBIT / Capital 22177/70551*100 31.43%

Employed

Return on Equity (R.O.E.) Net Income/ 15543/62234*100 24.97%

Shareholder’s Equity

Price Earnings Ratio (P/E Share Price/ Earnings 640/38.97 16.42%

Ratio) per Share

Return on Assets Net Income/ Total 15543/81041 19.17%

Assets

Control Point

Particulars Formula Calculation Ratio

Return on Investment (R.O.I) EBIT / Capital 42734/80949*100 52.79%

Employed

Return on Equity (R.O.E.) Net Income/ 33260/74368*100 44.72%

Shareholder’s Equity

Price Earnings Ratio (P/E Share Price/ Earnings 1825.90/88.64 20.60%

Ratio) per Share

Return on Assets Net Income/ Total 33260/104975 31.68%

Assets
Statement of Changes in Equity

Analysis
 Stock is trading at 0.79 times its book value
 Company is expected to give good quarter
 Promoter holding has increased by 9.51% over last quarter
 Though the company is reporting repeated profits, it is not paying out dividend
 Company has low interest coverage ratio
 Company has low return on equity of 4.30% for last 3 years
 Company has high debtors of 239.73 days.