FINANCIAL PERFORMANCE & EXPANSION PLANS OF DEVYANI INTERNATIONAL PRIVATE LIMITED

Presented By:- Siddhartha Goyal(Enroll. No. 9105)

Devyani International Limited (DIL) is an associate company of RJ Corp, a large multi-business, multi location corporate conglomerate, with interest in PEPSI bottling (India & Nepal), edible oil (Sri Lanka) Beer (Mauritius), Real Estate , Education.

Introduction of Company

Devyani International Limited (DIL) is engaged in running following brands in various parts of the country:

Future Expansion

Delhi Daredevils Sports Bar

Devyani Food Street

Other Expansion Plans

a) The company plans to open 12 bars, called Foodie’s Bar, across India over the next two years, said Mr.Virag Joshi, CEO of the Devyani International.

b) DIL is ambitious about its growth plans and aims to set up 300 outlets of Costa Coffee across the country.

c) DIL will set up 150 exclusive Disney Artist’s brand stores

Vision“To be the most preferred restaurant company for people

and customer alike”

Mission“To be people centric, customer focused & process driven operations striving for excellence day-in and

day-out with a beat year ago & turn-around mentality”

Major Company’s Competitors :-

Objective of the Project

The main objective of the project study are:

a) Detailed analysis of Devyani International Limited and its financial position.b) To enhance my analytical power. With the help of ratio analysis the company’s position.c) Application of various Technical tools and Fundamental tools (like Financial and Non-Financial statements).d) To know about companies future expansion plans.

Research Methodology

This section should provide solid or concrete foundations to the study. Quality and value of the research report depends upon how precisely and accurately the data is collected, processed, interpreted and analyzed so that fruitful conclusions may be drawn out of it. It includes :a) Data Collection Sourcesb) Data Collection Toolsc) Data Processing & Analysis.

Devyani Int. Ltd. Balance Sheets from 2006 to 2009 in Rs. Lakhs.

Mar '06 Mar '07 Mar '08 Mar '09

12 months 12 months 12 months 12 months

Sources Of Funds

Total Share Capital 797.13 797.13 797.13 816.08

Equity Share Capital 797.13 797.13 797.13 816.08

Reserves 3469.91 4043.90 5676.54 6308.30

Secured Loans 4107.40 6070.42 9629.76 10429.24

Total 8374.45 10911.46 16103.44 17553.63

Application Of Funds

Gross Block 7230.64 9384.42 12504.30 15758.59

Less: Depreciation 1246.58 1645.69 2151.93 2745.90

Net Block 5984.06 7738.73 10352.36 13012.69

Capital Work in Progress 228.09 177.52 876.90 659.49

Investments 2109.90 3448.71 1883.38 1366.16

Inventories 731.75 1033.73 2644.78 1467.54

Sundry Debtors 326.14 297.44 481.85 430.31

Cash and Bank Balance 385.85 215.67 620.70 779.17

Loans and Advances 2006.95 4586.66 5510.79 9778.83

Less : Current Liab. & prov. 2781.47 5867.19 5379.46 8804.51

Net Current Assets 669.24 266.31 3878.66 3651.35

Deferred Tax Liabilties (616.85) (719.82) (887.87) (1136.06)

Ratio Analysis

1) Liquidity Ratios,2) Profitability Analysis Ratios,3) Activity Analysis Ratios,4) Capital Structure Analysis,5) Trend Analysis.

Trend AnalysisDevyani International Pvt.Ltd.

For the years 2009, 2008, 2007&2006

Ratios 2009 2008 2007 2006 Trend

Current Ratio 1.4 1.7 1.1 1.2 Lower liquidity in 2009

Quick Ratio 1.3 1.2 0.86 0.98 Lower in 2009

Net Working Capital Ratio 0.21 0.24 0.02 0.08 Increase in 2008

Gross Profit Ratio 58.8% 47.8% 40.6% 31.6% Lower profitability in 2006

Net Profit Ratio 15.3% 11.8% 7.6% 4.9% Lower profitability in 2006

Return On Asset 0.22 0.22 0.16 Data inadequate Lower ROA in 2007

Return On Equity 4.6 3.9 4.7 Data inadequate Lower ROE in 2008

Earning Per Share 6.61 20.48 7.2 6.11 Higher in 2008

Asset Turnover Ratio 1.4 2 2.1 Data inadequate Highest turnover in 2008

Debt Equity Ratio 1.23 0.83 1.23 0.65 D.E.R. shows inconsistent results

C.G.R. 0.68 0.67 0.79 1.03 High gear in 2008

Proprietary Ratio 0.51 0.41 0.35 0.48 Lower risk in year 2009

Conclusion

Financial Statement Analysis is a method used by interested parties such as investors, creditors, and management to evaluate the past, current, and projected conditions and performance of the firm. This report mainly deals with the insight information of the mentioned company.

The company’s overall position is at a very good position. The company achieves sufficient profit in past four years.

Findings I analysis the financial statements of Devyani International Pvt. Ltd.:-

a) Liquidity position this company is not up to standard, it is below industry average. Working capital of Devyani international

is better ,but company must improve their liquidity position. b) Leverage ratios indicate the high risk associated with the company. Generally leverage ratios, measures the percentage of funds provided by the creditors. The proportion of a firm’s total assets is being financed with high percentage of borrowed funds.  c) A profitability ratio of Devyani International Pvt. Limited is good and upto the mark. d) Earnings per share is decreases in year 2009 and highest in year in 2008 and over it is good for company also shows good position in market. 

LIMITATION 

a) The data Collection was little bit tough because latest data is not available on the internet.b) Finding data of Devyani International Limited is very

difficult.c) Problem occurred due to lack of time and facility of

internet.