Financial Analysis of Delhi State Industrial and Infrastructure Development Corporation (DSIIDC), Public Sector

Undertakings of GNCTD
Financial Reports are comprehensive documents that provide an overview
of a company’s financial performance and position over a specific period of
time. These reports are essential for both internal management and external
stakeholders, such as investors, creditors, and regulatory authorities, to assess
the financial health and viability of the business.

Financial reports are prepared based on Generally Accepted Accounting

Principles (GAAP) or International Financial Reporting Standards (IFRS) and
are usually audited by independent auditors to ensure their accuracy and
reliability. They play a crucial role in decision-making, financial planning, and
assessing the overall health of a business.

Some key financial reports include:

1. Balance Sheet (Statement of Financial Position): The balance sheet

provides a snapshot of a company’s financial position at a specific point
in time. It lists the company’s assets (what it owns), liabilities (what it
owes), and shareholder’s equity (the difference between assets and
liabilities). The balance sheet is based on the accounting equation:
Assets = Liabilities + Shareholders’ Equity.

2. Income Statement (Profit and Loss Statement): This report presents a

company’s revenues, expenses, and profits or losses over a particular
period. It starts with the total revenue earned during the period and
deducts various expenses to arrive at the net income or net loss. The
income statement shows how well the company is generating profits
from its core operations.

3. Cash Flow Statement: This report tracks the flow of cash into and out of
the company during a given period. It is divided into three sections:
operating activities (cash flows from core business operations), investing
activities (cash flows from buying/selling assets or investments), and
financing activities (cash flows from raising or repaying capital).

4. Notes to the Financial Statements: These are supplementary disclosures

that provide more detailed information about the items presented in the
financial statements. The notes help users better understand the
financial numbers and accounting policies followed by the company.
Financial analysis is the process of evaluating the financial performance and
health of a company or an individual by examining relevant financial
information and data. The goal of financial analysis is to assess the
organization’s current financial position and make informed decisions about its
future prospects.

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

1. Horizontal Analysis - This involves comparing financial data Juan different

periods to identify trends and changes overtime. For example, analyzing
how revenue has grown over the past five years.

2. Vertical Analysis - This type of analysis involves comparing different line

items of financial statements as a percentage of a key figure (usually total
revenue or total assets). It helps in understanding the relative proportion of
each element and their impact on the overall financial performance.

Some key financial ratios are 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.
• Return on Capital Employed (%):
This ratio indicates the overall return on capital employed.
• Net Profit Ratio (%):
This ratio measures the proportion of net profit to turnover .

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 understand the financial health and performance of a company,
making it a valuable tool for decision-makers and investors.

Public Sector Undertakings (PSUs) are Government-owned

Corporations or Companies that are established to undertake commercial
activities on behalf of the Government. These entities are owned and operated
by the Government or state at national or state level.

The main objectives of PSUs are to generate profit while simultaneously

fulfilling Social and Development Goals set by the Government. These entities
often operate in strategic sectors such as energy, telecommunications,
transportation, banking, heavy industries, and more. PSUs play a crucial role in
the economic development of a country and contribute significantly to
infrastructure development and job creation.

Some advantages of PSUs include:

Revenue Generation: PSUs contribute to the Government’s revenue through
dividends, taxes, and other charges.

Employment: They provide employment opportunities to a large number of

people across various sectors and regions.

Strategic Control: PSUs allow the Government to have strategic control over
crucial sectors of the economy.

Socio-economic Development: PSUs can be instrumental in fostering socio-

economic development by investing in infrastructure and public welfare
projects.
The Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) is a
public sector undertaking of the Government of the National Capital Territory (NCT) of
Delhi, India. It was established in 1971 with the aim of promoting industrial and
infrastructure development in Delhi. DSIIDC is responsible for various activities related to
industrial development, urban infrastructure, and real estate development.

The business of the Company comprises of mainly three Business segments

a. Maintenance and operation of the Industrial Areas in Delhi

b. Construction Division
c. Liquor

A- Mission /Vision of DSIIDC

1. Industrial Area:

 Delhi has a total of 33 planned and notified industrial areas, including 29 Industrial
Estates and 4 flatted factory complexes.

 After the enactment of the Delhi Industrial Development, Operation, and

Maintenance Act (DIDOM Act) in 2010, DSIIDC assumed the responsibility for
 maintaining and upgrading various services in 24 industrial areas (20 Industrial
Estates and 4 flatted factories).

 Lease administration of only 12 industrial areas (8 Industrial Estates and 4 flatted

factories) was transferred to DSIIDC.

 The authority to collect revenue and levy penalties/charges for the 12 industrial
areas lies with the Delhi Development Authority (DDA) or Municipal Corporation of
Delhi (MCD).

 DSIIDC does not receive any revenue in respect of these 12 industrial areas, as lease
administration is managed by DDA/MCD.

2.. Setting up of TSDF for Hazardous Waste in Delhi:

DSIIDC awarded the work of developing a Treatment Storage Disposal Facility (TSDF) for
hazardous waste in Bawana, Delhi. The project is on a BOT (Build-Operate-Transfer) basis
for a period of 25 years. The contract was awarded to M/s Tamil Nadu Waste
Management Ltd. This initiative aims to address the safe disposal of hazardous waste in
the city.

3. Low-Cost Housing Scheme:

DSIIDC launched two housing schemes, one for industrial workers and another for
economically weaker sections. These schemes involved the construction of dwelling units
and dormitories, which were sold to industrial workers and CISF (Central Industrial
Security Force)

4. Development Works in Unauthorized Colonies:

DSIIDC has been carrying out infrastructure development in unauthorized colonies in

Delhi. Initially, the development work was focused on colonies eligible for regularization,
but later it was expanded to include all unauthorized colonies. DSIIDC is responsible for
the construction of roads and stormwater drains in these colonies.

5. Relocation of Industries:

DSIIDC is implementing the Relocation Scheme of Industries, which aims to shift industries
operating in non-conforming or residential areas to planned industrial areas. The scheme
involved the development of industrial plots and the allotment of these plots to eligible
industrial units. The scheme has faced some challenges due to the COVID-19 pandemic,
with some allottees facing difficulties in making payments and taking possession of plots.

6. Development of Multi-level Manufacturing Hub at Rani-Khera, Delhi:

DSIIDC has planned the development of a Multilevel Manufacturing Hub (DSIIDC
Technology Park) on 147 acres of land at Ranikhera. The project aims to attract
manufacturers and business houses. However, there has been a legal issue, as the project
faced a stay on commercial activities imposed by the National Green Tribunal (NGT).
DSIIDC has appealed the stay in the Supreme Court.

7. Knowledge-Based Industrial Park/Electronic City/Data Center at Baprola, Delhi:

Initially, DSIIDC was entrusted to develop a knowledge-based Industrial Park, but due to
non-approval of the layout plans, the project was dropped. DSIIDC is exploring options to
develop a data center, electronic city, or other industrial complexes on the available land.

8. Development of a New Industrial Area at Kanjhawala:

DSIIDC is developing a new industrial area at Kanjhawala, covering approximately 920

acres of land. Construction of the boundary wall has been completed, and the project is
being developed in line with the Master Plan for Delhi-2021 and Industrial Policy for Delhi
2010-21.

9. Community Work Centres (CWCs):

DSIIDC operates Community Work Centers at 52 locations in Delhi. The structures of some
CWC sites have completed their lifespan, and structural audits are being conducted.
DSIIDC plans to replace the semi-permanent structures with modern multi-storied flatted
factory buildings.

10. Liquor Division:

DSIIDC was entrusted with the sale and distribution of Indian Made Foreign Liquor (IMFL)
to ensure availability, stop leakages, and generate revenue. However, in the FY 2021-22,
the retail sale of liquor by DSIIDC was discontinued due to a new Excise Policy. In the FY
2022-23, DSIIDC resumed retail sales of liquor along with other corporations

11. Delhi Emporium "Bharati":

 DSIIDC operates the prestigious Delhi Emporium "Bharati" located at A-3/4, Baba
Kharak Singh Marg, New Delhi.

 The Emporium showcases a wide range of handicrafts, handmade creations,

souvenirs, corporate gifts, readymade garments, and sarees from state and national
awardees of small-scale, cottage, handloom, and tiny units with export potential.

 The turnover of Delhi Emporium was Rs. 132.51 lakhs during the financial year
2021-22.
  The sales were affected by the pandemic situation

 Additionally, a new "Bharati Delhi Emporium" has been opened in Kevadia, Gujarat,
and started operations from September 3, 2021.

12 Exhibition Division:

 DSIIDC organized the Delhi Pavilion for the India International Trade Fair (ITF) in
2022 at Pragati Maidan.

13. Office Automation and Implementation of IT Applications:

 DSIIDC has made significant progress in office automation by implementing IT

applications for various purposes.

 ERP solutions have been implemented for major projects, and a web-based system
for lease administration has been established.

 Digital modes of payment have been introduced in liquor vends.

 Online receipt of applications for all citizen-centric services, including conversion

from leasehold to freehold, change of constitution, possession, and execution of
lease deeds, is now possible.

B- In compliance of IND AS - 24 on Related Party Disclosures" issued by the MCA, the

names of related parties, nature of relationship and details of transactions entered
herewith are as under. –

1. List of Related Parties where control exists and the related parties with whom
transactions have taken place and relationship
a. (Joint Venture Companies)
1. Intelligent Communication System India Ltd.
b. (100% Subsidiary Companies)

1. DSIIDC Energy Limited

2. Delhi Creative Arts Development Limited
3. DSIIDC Maintenance Services Limited
4. DSIIDC Liquor Ltd.

B-Computation of various significant Financial Indicators in respect of DSIIDC

Table 2.1 Financial Data/ Indicators
 (Rs. in Lakhs)
S.No. Particulars 2019-20 2020-21 2021-22
(restated
Fig.)
1. Turnover 158101.94 134111.09 95493.08

2. Total expenses 117458.99 110917.26 79063.57

3. PBT/PBIT 40642.95 23193.83 16429.51

4. PBDIT
40720.45 23262.9 16497.43
5. Net Profit (NP) 31279.42 21871.07 14467.73

6. Capital Employed (CE)/Total Equity 221502.36 243209.14 251288.37

7. Net Worth (NW) 102247.12 120825.57 120160.63

8. Internal resource generation - - -

9. Foreign Exchange Earnings (FEE) 38.33 0.14 4.98

A Ratios:
a PBDIT to CE 18.42 9.60 6.80
b PBIT to Turnover 25.71 17.29 17.20
c NP to NW 30.59 18.10 12.04
d Turnover to CE 71.38 55.14 38.00
e FEE to Turnover 0.0242 0.0001 0.0052
f Debt to Equity - - -
g Investment in JV to NW 0.000273 0.000227 0.000228
h Return on capital employed (%) 18.35 9.54 6.54
i. Net profit ratio (%) 28.80 22.63 24.70
 Table 2.1.1 Working Note (Rs. in Lakhs)
Particulars 2019-20 2020-21 2021-22
(restated
Fig.)
A. PBT 40642.95 23193.8 16429.51
Expenses on Interest - - -
PBIT 40642.95 23193.8 16429.51
Depreciation 77.5 69.09 67.92
PBDIT 40720.45 23262.9 16497.43
B. Total Assets 461125.6 452324 472022.57
Total Liabilities 239623.2 209115 220734.2
CE (Total Asset-Total 221502.4 243209 251288.37
liabilities=Total equity)
DIDOM reserve 119255.2 122384 131127.74
Net Worth (NW)(Total 102247.1 120825.57 120160.63
equity-DIDOM reserve)
Operating expenses 19768.57 21317.2 24115.98
For the calculation of capital employed, CA (DSIIDC) considers total liabilities instead of current
liabilities, as discussed.
The DIDOM reserve is not taken into account when determining the net worth of DSIIDC.

Dividend Payout to GNCTD

Actual Dividend payout By Formula, The dividend

(In Rs Lakh) value (In Rs Lakh
Proposed Dividend as on March 6008.03 6008.03
31, 2022. (30% of PAT or 5% of
the Net worth whichever is
higher, as per Guidelines for
payment of Dividend by the
State PSUs issued by GNCTD
Finance department)
Proposed Dividend as on March 6572.75 6561.32
31, 2021. (30% of PAT or 5% of
the Net worth whichever is
higher, as per Guidelines for
payment of Dividend by the
State PSUs issued by GNCTD
Finance department)
Proposed Dividend as on March 2009.51 -
31, 2020
 Table 2.2 Growth Rate Analysis
(Rs. in Lakhs)
Years

S.No. Particulars
2019-20 to 2020-21 to
2020-21 2021-22
1 Turnover (Total -15.17 -28.80
revenue)

2 Total Expenses -5.57 -28.72

3 PBIT/PBT -42.93 -29.16

3A PBDIT -42.87 -29.08
4 Net Profit (NP) -30.08 -33.85
5 Capital Employed (CE) 9.80 3.32

6 Net Worth (NW) 18.17 -0.55

7 Internal resource - -
generation

8. Foreign Exchange -99.65 3638.01

Earnings (FEE)

9 Mobilization of Funds: NA NA

a. Domestic sources

b. International sources
 Table 2.3 Income Statement Analysis

(Rs. in Lakhs) 2019-20 2020-21 2021-22

Revenue from operations 122148 111245.13 78693.28
COGS 97620.4 89512.56 54353.84

Gross Profit( Net Sales - 24528 21732.57 24339.44

Cogs)
SG&A 7229.93 6703.43 7122.54
Other expenses 12461.1 14544.64 16925.52
Dep. & Amm. 77.5 69.09 67.92
Finance Charges 70.01 87.53 593.75
Tax 9363.53 1322.76 1961.78
Net Income/ PAT 31279.4 21871.07 14467.73
PBT/PBIT 40642.95 23193.83 16429.51
PBDIT 40790.50 23350.45 17091.18

Table 2.3.1 Vertical Analysis

(Rs. in Lakhs)
2019-20 2020-21 2021-22
Revenue From Operation 100.00 100.00 100.00
COGS 79.92 80.46 69.07
Gross Profit 20.08 19.54 30.93
SG&A 5.92 6.03 9.05
Other Expenses 10.20 13.07 21.51
Dep. & Amm. 0.06 0.06 0.09
Finance Charges 0.06 0.08 0.75
Tax 7.67 1.19 2.49
Net Income/ PAT 25.61 19.66 18.38
PBT/PBIT 33.27 20.85 20.88
PBDIT 33.34 20.91 20.96

Table 2.3.2 Horizontal analysis

(Rs. in Lakhs)
2020-21 2021-22
Revenue From Operation -8.93 -29.26
COGS -8.31 -39.28
Gross Profit -11.40 12.00
SG&A -7.28 6.25
Other expenses 16.72 16.37
Dep. & Amm. -10.85 -1.69
Finance Charges 25.02 578.34
Tax -85.87 48.31
Net Income/ PAT -30.08 -33.85
PBT/PBIT -42.93 -29.16
PBDIT -42.87 -29.08

Table 2.4 Comparative Statement of Income, Expenditure and (Rs. in

Profit Lakhs)
%age %age %age
Year Revenue variation Expenditure variation Profit variation
from from from
Previous Previous Previous
year year year

2019-20 158101.94 117458.99 31279.42

2020-21 134111.09 -15.17 110917.26 -5.57 21871.07 -30.08

2021-22 95493.08 -28.80 79063.57 -28.72 14467.73 -33.85

Table 2.5 Ratios and Leverages

Year 2019-20 2020-21 2021-22

Financial Leverage - - -
EPS 1489.84 892.72 272.61
Current Ratio 4.27 4.26 4.03

C-Graphical Representations
Fig 2.1
 Turnover
180000
158101.94
160000
140000 134111.09

120000
95493.08
RS IN LAKH

100000
80000
60000
40000
20000
0
2019-20 2020-21 2021-22

Ref Table 2.1

Remarks: Over the three-year period, the company's turnover has exhibited a consistent decline. In 2019-
20, the turnover stood at Rs. 158,101.94 lakhs. However, this figure decreased to Rs. 134,111.09 lakhs in
2020-21 and further declined to Rs. 95,493.08 lakhs in 2021-22 .

Fig 2.2

Comparati ve Revenue, Expenditure and Profi t

180000
160000
140000
120000
RS IN LAKH

100000
80000
60000
40000
20000
0
2019-20 2020-21 2021-22

Revenue Expenditure Profit

Ref: Table 2.4
Remarks:The graph is showing the impact on profit over the expenditure and revenue for
the period of 3 years. The company's revenue showed a significant decline from 2019-20
to 2021-22, with a corresponding decrease in profit.

Fig 2.3
 Gross Profi t
140000
120000
100000
80000
RS IN LAKH

60000
40000
20000
0
2019-20 2020-21 2021-22
YEAR

Revenue from operations COGS Gross Profit

Ref: Table 2.3.2

Remarks: The company's revenue from operations declined from 2019-20 to 2021-22,
accompanied by a decrease in cost of goods sold (COGS), resulting in a fluctuating gross
profit.

Fig 2.4

Expedniture Statement Analysis

140000

120000

100000
RS IN LAKH

80000

60000

40000

20000

0
2019-20 2020-21 2021-22
yEAR

COGS SG&A Other expenses

Dep. & Amm. Interest Expenses Operating expenses

Ref: Table 2.3.2

Remarks: Over the three years, the company has seen fluctuations in its operating
expenses. Although cost of goods sold (COGS) decreased significantly from 2019-20 to
2021-22, other expenses and interest expenses increased notably in 2021-22
 Fig 2.5 EPS

2021-22 RS. 272.61

2020-21 Rs. 892.72

Yeat

2019-20 Rs. 1489.84

0 200 400 600 800 1000 1200 1400 1600

In Rs.
Ref:
Table 2.5
Remarks: The company's earnings per share (EPS) have been declining significantly from
2019-20 to 2021-22, indicating a reduction in profitability per share.

Fig 2.6 Liablities Of DSIIDC

225000

175000
Rs in Lakjh

125000

75000

25000

2019-20 2020-21 2021-22

Current Liablities 115584.48 104824.77 135216.07
Non Current Liablities 105149.72 104289.75 104407.13
 D-Financial Performance and Analysis (2019-20 to 2021-22)
The financial data for the years 2019-20, 2020-21, and 2021-22 provides valuable insights
into the performance and financial health of the company over this three-year period. Key
financial indicators are analyzed to assess the company's growth, profitability, and capital
structure.

1. Turnover: The company's turnover, representing total revenue generated, has

shown a declining trend over the three years. From Rs. 158,101.94 lakhs in 2019-
20, it decreased to Rs. 134,111.09 lakhs in 2020-21 and further dropped to Rs.
95,493.08 lakhs in 2021-22.

2. Profitability:
 PBT reduced significantly from Rs. 40,642.95 lakhs in 2019-20 to Rs. 16,429.51 lakhs
in 2021-22, indicating a sharp decline in pre-tax profits.
 The trend in PBIT and PBDIT follows a similar pattern
 Net Profit (NP) showed a continuous decrease, falling from Rs. 31,279.42 lakhs in
2019-20 to Rs. 14,467.73 lakhs in 2021-22, reflecting challenges in maintaining
bottom-line profitability.

3. Capital Employed and Equity:

 The Capital Employed (CE) or Total Equity has exhibited an upward trajectory,
increasing from Rs. 221,502.36 lakhs in 2019-20 to Rs. 251,288.37 lakhs in 2021-22.
This indicating that the company has been reinvesting and expanding its capital
base.
 The DIDOM Reserve, an important component of equity, has also grown over the
years, from Rs. 119,255.24 lakhs to Rs. 131,127.74 lakhs. Also DIDOM reserve is
excluded from the calculation of dividend income because it is not considered a
component of the net worth or total equity.

4. Net Worth: DSIIDC's Net Worth (NW) has remained relatively stable over the
three years, starting at Rs. 102,247.12 lakhs in 2019-20 and ending at Rs.
120,160.63 lakhs in 2021-22. This indicates that, despite the challenges, the
organization has not experienced a significant erosion of its net assets .

5. Revenue from Operations: Revenue from operations has seen a gradual decline
over the three years, falling from Rs. 122,148.37 lakhs in 2019-20 to Rs. 78,693.28
lakhs in 2021-22. This decrease in revenue from operations can be attributed to
various factors, including market conditions in Covid Duration, and the
implementation of a new excise policy in 2021. Under this new policy, the
 government-operated outlets for liquor sales were reduced, leading to a decrease
in revenue streams for liquor businesses.
6. Cost of Goods Sold (COGS): COGS represents the direct costs associated with
producing the goods sold. It has also decreased consistently, from Rs. 97,620.41
lakhs in 2019-20 to Rs. 54,353.84 lakhs in 2021-22.
7. Gross Profit:
 Despite the decline in revenue, gross profit remained relatively stable and
even increased in 2021-22, reaching Rs. 24,339.44 lakhs compared to 2020-
21.
 This stability in gross profit indicating effective cost management and the
ability to maintain profitability despite lower sales.
8. Operating Expenses:
 The total operating expenses, which encompass SG&A expenses, other
expenses and depreciation increased from Rs. 19,768.57 lakhs in 2019-20 to
Rs. 24,115.98 lakhs in 2021-22.
 This rise reflects the combined impact of changes in various expense
categories.
9. Net Sales of Liquor Division:
 The substantial decrease in net liquor sales, which fell from Rs. 95,523.87
lakhs in the fiscal year 2019-20 to Rs. 57,235.29 lakhs in 2021-22, is the
primary factor responsible for the declining overall revenue trend. Liquor
sales play a pivotal role in revenue generation, accounting for
approximately 95% of revenue income in last three year."
 The new excise policy, reduced number of liquor shops, and COVID-19-
related market disruptions likely contributed to this decline.
Sales of Bottle 2019-2020 2020-2021 2021-2022
IMFL 47700349 39141845 23254372
E - Analysis of the key financial ratios for the years 2019-20, 2020-21, and 2021-22:

a. PBDIT to CE (Profit Before Depreciation, Interest, and Tax to Capital

Employed):
- The ratio has shown a declining trend, falling from 18.42% in 2019-20 to 6.80% in 2021-22,
indicating a decrease in profit generation relative to the capital employed.

b. PBIT to Turnover (Profit Before Interest and Tax to Turnover):

- While it remained relatively stable, it decreased slightly from 25.75% in 2019-20 to 17.83% in
2021-22, indicating a decrease in profit margin.

c. NP to NW (Net Profit to Net Worth):

 - There is a notable decline in this ratio from 30.59% in 2019-20 to 12.04% in 2021-22. This
indicating a reduced ability to generate net profits relative to shareholders' equity.

d. Turnover to CE (Turnover to Capital Employed):.

- It has shown a decreasing trend, indicating that sales are not growing as rapidly as capital
employed.

e. Return on Capital Employed (%)

- It has seen a decline from 18.38% in 2019-20 to 6.77% in 2021-22, indicating reduced overall
profitability and efficiency in utilizing capital.

f. Net Profit Ratio (%):

- While it decreased from 28.80% in 2019-20 to 24.70% in 2021-22 which indicate decline in
profit margins.

In summary, the financial ratios reveal several challenges, including declining profitability, reduced
efficiency in capital utilization, a and a decline in return on capital employed.
 Table 2.7: Segment Analysis: Division-wise Breakdown of Income and Expenditure
Year 31.03.2022 31.03.2021 31.03.2020
Particular LIQUOR HOUSING DIDOM HQ& TOTAL LIQUOR HOUSING DIDOM HQ& TOTAL LIQUOR HOUSING DIDOM HQ& TOTAL
Division &WORKS others Division &WORKS others Division &WORKS others
DIVISION DIVISION DIVISION

Segment revenue

Sales 57235.29 37.59 1179.64 132.51 58585.03 92523.87 44.59 4019.59 65.29 96653.34 101285.9 3952.66 3076.97 296.74 108612.24

Revenue from deposit - 849.00 NIL 849 - 1757.15 - NIL 1757.15 1882.56 NIL 1882.56
works
Other income 304.79 107.21 22895.51 1113.71 24421.22 492.88 2900.38 12803.84 1969.24 18166.35 412.56 295.25 12540.8 11132 24380.61

interest income 22.85 96.58 0 11518.4 11637.82 203.58 83.28 0 17247.38 17534.24 542.79 106.16 0 22577.71 23226.67

total Revenue 57562.93 1090.38 24075.15 12764.6 95493.08 93220.33 4785.41 16823.43 19281.92 134111.1 102241.2 6236.64 15617.76 34006.45 158102.08
2
Segment expenditure

Cost of sales 53312.02 17.49 924.08 100.25 54353.84 86113.33 26.29 3086.5 49.21 89275.33 94389.45 942.4 2065.53 223.03 97620.41

administrative and 2003.17 2297.48 12041.07 549.14 16890.43 2881.16 2106.51 10016.83 760.19 15764.70 2803.72 2014.66 8344.2 261.63 13424.29
other expenses
HQ Allotted expenses 2385.88 2385.88 2385.88 0 7157.63 1906.99 1906.99 1906.99 0 5720.97 2114.76 2114.76 2114.76 0 6344.29

Interest expenses 0 0 593.75 0 593.75 0 0 87.53 0 87.53 0 0 0 70 70

Depreciation 0 0 0 67.92 67.92 0 0 0 69.09 69.09 0 0 0 0 0

Total Expenditure 57701.06 4700.85 15944.78 717.31 79064.00 90901.49 4039.8 15097.85 878.13 110917.3 99307.94 5071.82 12524.57 555.14 117459.46
F- To perform a comparative analysis of the three-year data for each segment.

Income & Expenditure Analysis of Three year data -

Revenue Contribution by Division:

 LIQUOR Division contributes the highest percentage of total revenue at
65.26%. This contribution primarily comes from sales, with a minor
portion from other income and interest income.
 HOUSING & WORKS DIVISION contributes 3.12% of the total revenue. This
division derives revenue mainly from sales and other income.
 DIDOM contributes 14.58% of the total revenue, primarily driven by other
income.
 HQ & Others contribute 17.04% of the total revenue. The primary revenue
sources for this division are interest income and other income .

Expenditure Contribution by Division:

 LIQUOR Division incurs the highest percentage of total expenditure at
80.64%. This division's expenses primarily consist of the cost of sales,
administrative and other expenses, and HQ allotted expenses.
 HOUSING & WORKS DIVISION incurs 4.49% of the total expenditure. Its
expenses are distributed among cost of sales, administrative and other
expenses, and HQ allotted expenses.
 DIDOM incurs 14.17% of the total expenditure, with significant expenses
attributed to administrative and other expenses and interest expenses.
 HQ & Others have the lowest expenditure at 0.70% of the total
expenditure. This division's expenses consist mainly of interest expenses
and depreciation.

Liquor Division:

The Liquor Division experienced a decline in sales revenue over the three-year
period. It decreased from Rs. 101,285.87 lakhs in 2019-2020 to Rs. 92,523.87
lakhs in 2021-22 and further dropped to Rs. 57,235.29 lakhs in 2021-22. This
decrease can be attributed to the implementation of a new excise policy .
Housing & Works Division:

The Housing & Works Division witnessed a continuous decline in sales revenue
over the three-year period, dropping from Rs. 3,952.66 lakhs in 2019-20 to Rs.
44.59 lakhs in 2020-21 and further down to Rs. 37.59 lakhs in 2021-22. In 2021-
22, the segment result before tax decreased significantly compared to the
previous two years. This decline can be attributed to two main factors: a
decrease in revenue from other income compared to the previous year and a
continuous increase in expenditure, specifically for administrative and other
expenses, as well as HQ Allotted expenses.

DIDOM:

In the case of DIDOM, the sales revenue decreased from Rs. 4019.59 lakhs IN
2020-21 to Rs. 1179.64 lakhs in 2021-22. However, there was an increase in
other income in 2021-22 compared to 2020-21. Additionally, expenditure has
been continuously increasing since 2019-20, primarily in administrative and
other expenses, as well as HQ Allotted expenses.
HQ & Others:

The HQ & Others segment experienced a decrease in sales revenue from Rs.
296.74 lakhs in 2019-20 to Rs. 65.29 lakhs in 2020-21. It increased to Rs. 132.51
lakhs in 2021-22 but still remained lower than the revenue in 2019-20, indicating
a continuous decrease in revenue for HQ & Others.

Overall, the divisions faced various challenges in terms of declining sales

revenue, increased expenditure, and fluctuating segment results. The reasons
behind these trends varied across the divisions, including the impact of new
policies, changes in other income, and rising operating expenses. These factors
influenced the financial performance of each division differently, leading to a
mix of negative and positive results in terms of segment results before and after
tax.
G - Based on the information provided by DSIIDC and its various
divisions, here are some recommendations to improve its
performance:
1. Marketing and Promotion:

- Develop a comprehensive marketing strategy to enhance the visibility and reach

of Delhi Emporium "Bharati." This can include targeted advertising campaigns,
online promotion through social media platforms, and collaborations with travel
agencies and tourism organizations to attract more national and international
tourists.

- Explore partnerships with hotels, airlines, and tour operators to promote the
emporium as a must-visit destination for tourists in Delhi.

2. Sales and Revenue Growth:

- Conduct market research to identify new potential markets for the products
offered at Delhi Emporium. This can help in expanding the customer base and
increasing sales.

- Offer online shopping options and establish an e-commerce platform to reach

customers beyond physical store visitors. This can help in generating additional
revenue streams.

- Provide attractive discounts, special offers, or loyalty programs to incentivize

repeat purchases and customer loyalty.

3. Exhibition Division:

- Enhance the participation of DSIIDC in trade fairs, both nationally and

internationally, to showcase the products and capabilities of Delhi-based artisans
and manufacturers. This can help in expanding business opportunities and
attracting potential buyers.

- Strengthen the exhibition planning and management processes to ensure

efficient and effective utilization of resources and maximum participation from
relevant stakeholders.

4. IT Applications and Automation:

- Continuously upgrade and optimize the existing IT applications to streamline

processes and improve efficiency in lease administration, project management,
and citizen-centric services.

- Explore the implementation of digital payment systems, such as mobile wallets

and online payment gateways, to provide convenient payment options for
customers and reduce reliance on cash transactions.

5. Industrial Area Development:

- Collaborate with the Delhi Development Authority (DDA) and Municipal

Corporation of Delhi (MCD) to streamline the lease administration process for the
industrial areas under their purview. This can help in improving revenue collection
for DSIIDC and ensure a consistent approach to industrial area management.

- Focus on infrastructure development and maintenance in industrial areas to

attract more businesses and create a conducive environment for industrial
growth. This can include initiatives like improved road connectivity, regular utility
services, and provision of common facilities.

6. Performance Monitoring and Evaluation:

- Implement a robust monitoring and evaluation system to track the performance

of different divisions, projects, and initiatives. This can help in identifying areas for
improvement, assessing the impact of implemented strategies, and making data-
driven decisions.

- Regularly review financial performance, sales figures, and customer feedback to

identify trends, address issues, and make necessary adjustments in strategies and
operations.

7. Liquor Division The following recommendations can be made to further

improve the sales of Liquor figures which contribute major income to DSSIDC

1. Increase Marketing Efforts: Implement targeted marketing campaigns to

create awareness and promote the liquor products. This can include advertising,
social media promotions, influencer collaborations, and events. The aim is to
reach the target audience and highlight the unique selling points of the liquor
products.

2. Enhance Product Visibility: Ensure that the liquor products are prominently
displayed and easily accessible in retail outlets. Optimize shelf space, create
attractive displays, and use signage or point-of-sale materials to grab the
customers' attention. This will help increase the visibility and attractiveness of the
products.

3. Improve Product Quality and Variety: Continuously assess and improve the
quality of liquor products to meet customer expectations. Conduct market
research to identify trends and preferences and introduce new flavors, variants,
or packaging options to cater to diverse consumer preferences.

5. Expand Retail Network: Accelerate the process of opening new vends to reach
the target of 210 vends in upcoming months. Ensure strategic placement of
outlets in high-traffic areas, considering consumer preferences and convenience.
This will increase accessibility and attract a larger customer base.

6. Leverage Online Sales Channels: Develop or enhance online platforms for

selling liquor bottles. Create a user-friendly website or mobile app where
customers can browse, purchase, and receive deliveries conveniently. Implement
secure age verification processes to comply with regulations. Additionally,
consider partnering with popular online marketplaces or delivery platforms to
expand reach and accessibility.

By implementing these recommendations and leveraging the financial resources

and infrastructure of DSIIDC, the liquor division can aim to regain and exceed its
previous sales figures. Continued focus on market dynamics, customer
preferences, and operational efficiency will be key in driving growth and
profitability for the division.

It's important to continuously monitor and analyze sales data, customer feedback,
and market trends to refine these recommendations and adapt strategies
accordingly.

H-Conclusion- DSIIDC has navigated a period of challenges, including

changes in liquor sales policies and the economic impact of the pandemic. To
secure its financial health and long-term success, the organization must adopt
strategies that focus on diversification, cost optimization, and adapting to
evolving market conditions. Effectively managing expenses and devising
innovative approaches to boost net sales will be key to its future success.
Moreover, DSIIDC should remain agile and resilient in the face of
uncertainties, consistently monitor market dynamics, and make informed
strategic decisions to drive growth and profitability.