Financial Report on Shahjahanabad Redevelopment

Corporation, a Public Sector undertaking (PSU)

established under Administrative Control of GNCTD

PLANNING DEPARTMENT, GNCTD

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Assets = Liabilities + Shareholders’ Equity.

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4. Notes to the Financial Statements: These are supplementary

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 Financial analysis is the process of evaluating the financial performance and health
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Financial analysts consider the financial reports of the company and provide a
comprehensive analysis. There are two main types of financial analysis:

also used in financial analysis including:

• Liquidity Ratios: Measure a company's ability to meet short-term obligations.

• Profitability Ratios: Assess the company's ability to generate profits relative to its
revenue, assets, or equity.

• Solvency Ratios: Indicate the company's long-term financial viability and its ability to
meet long-term debt obligations.

• Efficiency Ratios: Evaluate how effectively a company utilize its assets and manages its
operations as
• PBDIT to CE (Profit Before Depreciation, Interest, and Tax to Capital Employed):
This ratio indicates how efficiently the company generates profits from its capital
employed.
• PBIT to Turnover (Profit Before Interest and Tax to Turnover):
This ratio assesses the company's ability to generate profits from its sales.
• NP to NW (Net Profit to Net Worth):
This ratio measures the return on shareholders' equity.
• Turnover to CE (Turnover to Capital Employed):
This ratio indicates how effectively the company utilizes its capital employed to generate
sales.

Financial analysis plays a crucial role in various areas, such as investment decision-making,
credit assessment by lenders, and strategic planning for businesses. It helps stakeholders
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for decision-makers and investors.
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The main objectives of PSUs are to generate profit while simultaneously fulfilling Social
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significantly to infrastructure development and job creation.

Shahjahanabad Redevelopment Corporation

Shahjahanabad Redevelopment Corporation is a Company limited by Shares not for profit
under section 25 of the Companies Act, 1956. Main objective of the Corporation are to
promote conservation of built and natural heritage in the National Capital Territory of Delhi
which needs to be protected, nourished and maintained by all citizens, conservation as an
attitude in city's urban development process, conservation of the civic and urban heritage
which would include architecturally significant and artisan works, historical landmarks and
living monuments having socio-cultural value not with the motive of profit. To promote
conservation of built and natural heritage in the National Capital Territory of Delhi which
needs to be protected, nourished and maintained by all citizens, conservation as an attitude
in city's urban development process, conservation of the civic and urban heritage which
would include architecturally significant and artisan works, historical landmarks and living
monuments having socio-cultural value not with the motive of profit.

The objective incidental or ancillary to the attainment of main objects are:

1. To protect and improve environmental assets of the city such as the riverfront,
ancient city walls, gates, bridges, vistas, public places, edicts and rock cut formations
and to take steps to improve civic services such as water supply, Sewerage,
Electricity supply and Public Transport in NCT of Delhi and for this purpose to raise
or arrange funding form, and/ or otherwise capitalise as far as possible, sources such
as the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) or similar
schemes as may be introduced from time to time.
2. To formulate developments plans/programmes and redevelopment plans/programmes
and implements such plans/ programmes or assist in their implementation through
public private partnership or other frameworks, for built and Natural heritage,
historical landmarks, living monuments and associated services provisions in NCT of
Delhi and surrounding areas and to invite and appoint expert, academicians and
consultants in any field required for the effective implementation of various policies,
programmes and plans as may be required from time to time.
3. To coordinate efforts with regard to prevention, maintenance and restoration of
Heritage building and monuments with other organization, including non-
government organisations working in this behalf and to provide assistance to
individual, institutions, and non-governmental organisations in their efforts to save,
conserve, protect, restore, preserve or maintain all or in part various components of
urban heritage and to actively coordinate with other with other governmental
agencies engaged in the conservation of heritage buildings, heritage zones and other
areas of significant values.

Computation of various significant Financial Indicators in respect of DSIIDC

Financial Data/ Indicators Rs in Lakh

S.No. Particulars
March 31, March 31, 2020 March 31,
2021 2019
1 Turnover 116.06 110.22 102.56
2 Total expenses 116.06 110.22 102.56
3 PBT 0.00 0.00 0.00
4 PBIT 0.00 0.00 0.00
5 PBDIT
0.07 0.06 0.13
6 Net Profit (NP) 0.00 0.00 0.00
7 Total equity/Net Worth (NW) 17.98 17.98 17.98
8 Capital employed 9984.79 4423.54 4048.97
A Ratios:
a PBDIT to CE 0.72 1.45 3.26
b PBIT to Turnover 0.00 0.00 0.00
c NP to NW 0.00 0.00 0.00
d Turnover to CE 0.01 0.02 0.03
e FEE to Turnover - - -
f Debt to Equity - - -

Balance Sheet Details ( Rs in Lakh)

For the year ended For the year ended For the year ended
Particulars
March 31, 2021 March 31, 2020 March 31, 2019
Grant Utilized(a)* 102.10 32.05 66.13
Other income(b)# 13.96 78.16 37.42

A. PBT - - -
Expenses (Interest) - - -
PBIT - - -
Depreciation 0.07 0.06 0.13
PBDIT 0.07 0.06 0.13
B. Total Assets 10,190.84 4,884.26 5,641.16
Current asset 222.67 477.90 1,609.31
Non-current Assets 9,968.17 4,406.36 4,031.86
Total Liabilities 10,172.86 4,866.28 5,623.19
Net worth 17.98 17.98 17.98
Current Liabilities 206.05 460.72 1,592.20

Noncurrent
9,966.81 4,405.56 4,030.99
liabilities
4,048.97
CE (total asset-
9,984.79 4,423.54
current liabilities)
* Grant Received from Govt of Delhi GNCTD
#Other Income Source: Mainly from Term deposit and Saving Account

Growth Analysis (in %)

Growth From Growth From 2019 to

Particulars
2020 to 2021 2020

Turnover 5.30 7.47

Total expenses 5.30 7.47

Grant Utilized(a) 218.51 -51.53

Other income(b) -82.14 108.87

Depreciation 12.18 -51.27

PBDIT 12.18 -51.27

B. Total Assets 108.65 -13.42

Current asset -53.41 -70.30

Non-current Assets 126.22 9.29

Total Liabilities 109.05 -13.46

Net worth 0.00 0.00

Current Liabilities -55.28 -71.06

Noncurrent liabilities 126.23 9.29

CE(total asset- current liabilities) 125.72 9.25

 Financial Performance and Analysis (2018-19 to 2020-21)

1. Turnover: The Corporation's revenue has shown a consistent trend, with a modest
increase from Rs 102.56 lakh in 2019 to Rs 116.06 lakh in 2021. This revenue
primarily consists of external sources, with approximately 60% originating from
grants provided by the Delhi government (GNCTD) and the remaining 40%
generated from interest earned on bank deposits. It's important to note that the
Corporation does not generate any internal revenue.

2. Total Expenses: Total expenses mirrored the turnover, indicating that the
Corporation has been utilizing its income to fund its operations entirely. In 2020-21,
expenses amounted to Rs 116.06 lakh.

3. Profit Before Tax (PBT): The Corporation did not report any profit before tax for
the analysed years. This indicates that its operations did not result in a surplus of
revenue over expenses.

4. Net Profit (NP): The Corporation did not generate any net profit or surplus revenue
during the analysed years.

5. Total Equity/Net Worth: The net worth of the Corporation remained constant at Rs
17.98 lakh throughout the analysed period.

6. Capital Employed: Capital employed increased significantly from Rs 4,048.97 lakh

in 2018-19 to Rs 9,984.79 lakh in 2020-21, mainly due to the increase in non-current
assets.

Financial Ratios:
a. Turnover to Capital Employed: This ratio indicates the efficiency of capital utilization.
The Corporation's low turnover in comparison to capital employed suggests that its
activities are not generating substantial revenue.

b. Debt to Equity: The financial data does not provide information on debt, so this ratio
remains unspecified

Analysis of Major Expenditure

Major Expenses Amount in Rs

Lakh
Particular 2018-19 2019-20 2020-21
Salaries and other employee 38.01 54.28 61.63
benefits

Consultancy & professional 7.15 7.24 8.55

charges

Man Power hiring charges 15.84 17.87 17.57

Miscellaneous expenses 0.62 0.56 0.70

Printing, stationery & stores 3.42 0.83 0.50

Telephone & Internet Charges 0.66 0.76 0.81

Vehicle Hirring charges 13.92 13.05 12.78

Total Expenses 116.06 110.22 103.56

1. Salaries and Other Employee Benefits: This category accounts for the largest
portion of expenses, representing approximately 46.67% of the total expenses. It's a
significant expense, which is typical for organizations that rely on human resources
for their operations.

2. Consultancy & Professional Charges: This category represents approximately

6.96% of the total expenses. It's a relatively smaller portion of the budget, indicating
the importance of specialized external expertise in the Corporation's activities.

3. Manpower Hiring Charges: Manpower hiring charges account for about 15.55% of
the total expenses. This category includes expenses related to temporary or contract
staff, indicating a substantial reliance on such workforce arrangements.
4. Miscellaneous Expenses: Miscellaneous expenses are a minor portion of the budget,
constituting around 0.57% of total expenses. These expenses likely cover various
small and miscellaneous costs.

5. Printing, Stationery & Stores: This category represents approximately 1.44% of

total expenses. It covers costs associated with office supplies and related materials.

6. Telephone & Internet Charges: Telephone and internet charges account for about
0.68% of total expenses, indicating a relatively small portion of the budget allocated
to communication expenses.

7. Vehicle Hiring Charges: Vehicle hiring charges constitute around 12.05% of total
expenses. This category includes expenses related to renting vehicles, which might
be necessary for the Corporation's activities.

Recommendations and Suggestions

1. Revenue Sources: The Corporation heavily relies on external funding, primarily

from grants provided by the Delhi government (GNCTD) and interest earned on
bank deposits. Given its non-profit status and mission, diversifying revenue sources
might help reduce dependence on government grants.
2. Diversify Revenue Streams: Explore opportunities for generating internal revenue,
such as fundraising campaigns, partnerships with private sector organizations, or
heritage-related tourism initiatives. This can reduce reliance on government grants
and provide more financial stability.
3. Cost Efficiency: Review the allocation of expenses to ensure that funds are utilized
efficiently. This includes careful monitoring of salaries, consultancy charges, and
other operating expenses.
4. Grant Management: Continue to seek grants and funding opportunities from
governmental and non-governmental sources while ensuring effective grant
management and reporting.
5. Engage in Public-Private Partnerships: Explore opportunities for public-private
partnerships (PPPs) to implement development and conservation projects. PPPs can
bring additional expertise and resources to achieve the Corporation's objectives.
6. Regular Financial Reporting: Maintain transparency by providing regular financial
reports to stakeholders, including government agencies and donors. Clear reporting
can instill trust and attract further funding.
7. Review Expenses: The organization's major expenses are predominantly driven by
salaries and other employee benefits, making up a substantial 46.67% of the total
expenses. Additionally, vehicle hiring charges constitute a significant portion,
accounting for 12.05% of the total expenses. These expenditure levels appear to be
on the higher side relative to the organization's objectives. Therefore, it is advisable
to review and adjust the cost structure to ensure better expense management.
Shahjahanabad Redevelopment Corporation has shown commendable progress in its
mission of heritage conservation, addressing the areas for improvement mentioned above is
essential to ensure long-term financial sustainability. A balanced approach that combines
diversifying revenue sources, optimizing expenses, and exploring partnerships will
contribute to the organization's ability to effectively carry out its vital work in heritage
preservation.