CHAPTER 7

Cash Flow AnAlysis

of Sample Real
EstatE CompaniEs

226
INTRODUCTION – CASH FLOW

A cash flow statement is one of the most important financial statements for a
project or business. A type of financial analysis that compares the timing and
amount of cash inflows with the timing and amount of cash outflows. A firm’s
cash flow position can greatly affect its ability to remain in business. These
effects may not be apparent from a cost-benefit analysis. The statement can be as
simple as a one page analysis or may involve several schedules that feed
information into a central statement.
The cash flow statement traces the various sources which bring in cash, such as
operations, sale of current and fixed assets, issuance of share capital and long
term borrowings etc. and the applications which cause outflow of cash, such as,
purchase of current and fixed assets, redemption of debentures, preference shares
for cash and so on. This statement is designed for account for the change in cash

Cash flow statement provides information about the cash receipts and payments
of a firm for a given period. It provides important information that compliments
the profit and loss account and balance sheet. The information about the cash-
flows of a useful in providing users or financial statements with a basis to assess
the ability of the enterprise to generate cash and cash equivalents and the needs of
the enterprise to utilize these cash flows. The economic decisions that are taken
by users require an evaluation of the ability of an enterprise to generate cash
equivalents and the timing and certainty of their generation. The statement deals
with the provision of information about the historical changes in cash equivalents
of an enterprise by means of a cash flow statement, which classifies cash flows
during the period from operation investing and financing activities.

Cash comprises cash on hand and demand deposit with banks.

Cash equivalents are short-term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to an insignificant
risk of changes in value. Examples of cash equivalents are, treasury bills,
commercial paper etc.

The (total) net cash flow of a company over a period (typically a quarter, half
year, or a full year) is equal to the change in cash balance over this period:

227
positive if the cash balance increases (more cash becomes available), negative if
the cash balance decreases.

Objectives of Cash Flow Statement

Think of cash as the ingredient that makes the business operate smoothly just as
grease is the ingredient that makes a machine function smoothly. Without
adequate cash a business cannot function because many of the transactions
require cash to complete them.

By creating a cash flow budget you can project your sources and applications of
funds for the upcoming time periods. You will identify any cash deficit periods in
advance so you can take corrective actions now to alleviate the deficit. This may
involve shifting the timing of certain transactions. It may also determine when
money will be borrowed. If borrowing is involved, it will also determine the
amount of cash that needs to be borrowed.

Periods of excess cash can also be identified. This information can be used to
direct excess cash into interest bearing assets where additional revenue can be
generated or to scheduled loan payments. A Cash Flow statement is prepared to
fulfill the following objectives.

1. To determine a project's rate of return or value. The time of cash

flows into and out of projects are used as inputs in financial models such as
internal rate of return and net present value.

2. To determine problems with a business's liquidity. Being profitable

does not necessarily mean being liquid. A company can fail because of a
shortage of cash even while profitable.

3. Act as an alternative measure of a business's profits: As an alternative

measure of a business's profits when it is believed that accrual accounting
concepts do not represent economic realities. For instance, a company may be
notionally profitable but generating little operational cash (as may be the case
for a company that barters its products rather than selling for cash). In such a

228
 case, the company may be deriving additional operating cash by issuing
shares or raising additional debt finance.

4. To evaluate the quality of income generated by accrual accounting:

Cash flow can be used to evaluate the 'quality' of income generated by
accrual accounting. When net income is composed of large non-cash
items it is considered low quality.
5. To evaluate the risks within a financial product e.g., matching cash
requirements, evaluating default risk, re-investment requirements, etc.

Cash Flow is not Profitability

People often mistakenly believe that a cash flow statement will show the
profitability of a business or project. Although closely related, cash flow and
profitability are different. A cash flow statement lists cash inflows and cash
outflows while the income statement lists income and expenses. A cash flow
statement shows liquidity while an income statement shows profitability.

Information required for the preparation of a cash flow

statement

Comparative Balance Sheets: Balance Sheets at the beginning and at the

end of the accounting period indicate the amount of changes that have taken place
in assets, liabilities and capital.

Profit and Loss Account: The profit and loss account of the current period
enables to determine the amount of cash provided by or used in operations during
the accounting period after making adjustments for non-cash, current assets and
currents liabilities.

Additional Data: In addition to the above statements, additional data are

collected to determine how cash has been provided or used e.g. sale or purchase
of assets for cash.

229
Preparation of Cash Flow Statement

Cash Flows Statement can be prepared using International Accounting Standard

7. In India it can be prepared using the Accounting Standard 3. The cash flows
during the period are classified into 3 major categories, they are:-

 Cash Flow from Operating Activities

 Cash Flow from Investing Activities
 Cash Flow from Financing Activities

Cash flows from operating activities

There are 2 methods of preparing the Cash Flows from Operating Activities:-

1. Direct Method

2. Indirect Method

Operating activities are the principal revenue-producing activities of the

enterprise and other activities that are not investing and financing activities. It
includes cash earnings plus changes to working capital. Operating activities
include cash effects of those transactions and events that enter into the
determination of net profit or loss. Operating Activities refers to cash transactions
which involve revenue receipts and expenses that affect net income.

While preparing the Cash Flow Statement as per Direct Method, Actual Cash
Receipts from Operating Revenues and Actual Cash Payments for Operating
Activities are arranged and presented in the Cash Flow Statement. The difference
between Cash Receipts and Cash Payments is the Net Cash Flow from Operating
Activities under the Direct Method. In other words, it is a Income Statement
(Profit & Loss A/c) prepared on Cash Basis under the Direct Method.

While preparing the Cash Flow Statement as per Direct Method, items like
Depreciation, Amortization of Intangible Assets, Preliminary Expenses,
Debenture Discount etc are ignored from Cash Flow Statement since the Direct
Method includes only Cash Transactions and Non-Cash Transactions are omitted.

230
Likewise, no adjustment is made for Loss/Gain on the Sale of Fixed Assets and
Investments while preparing the Cash Flow Statement as per the Direct Method.

Items of cash inflow

 Cash receipts from the sale of goods and the rendering of services
 Cash receipts from royalties, fees, commissions, and other revenue

Items of cash outflow

 Cash payment to suppliers for goods and services

 Cash payments to and on behalf of employees

Cash payments or refunds of income-taxes unless they can be specifically

identified with financing and investing activities

Cash receipts and payments relating to future contracts, forward contracts, option
contracts, and swap contracts when the contracts are held for dealing or trading
purposes etc.

While preparing the Cash Flow Statement the Net Profit/Loss for the period is
taken as the base and then adjustments are made for items that affected the
Income Statement but did not affect the Cash.

While preparing the Cash Flow Statement Non Cash and Non Operating charges
from the Income Statement are added back to the Net Profits while Non-Cash &
Non-Operating Credits are deducted to calculate the Operating Profit before
charging working capital. Further, necessary adjustments are made for
Increase/Decrease in current assets and current liabilities to obtain Net Cash
Flows from Operating Activities.

Format of Cash Flows from Operating Activities

Particulars Amount

Net Profit before Tax and Extra-ordinary items xxx

231
Adjustments for

- Depreciation xxx

- Foreign Exchange xxx

- Investments xxx

- Gain or Loss on Sale of Fixed Assets xxx

- Interest Dividend xxx

Operating Profit before Working Capital Changes xxx

Adjustments for

- Trade and Other Receivables xxx

- Inventories xxx

- Trade Payable xxx

Cash generated from Operations xxx

- Interest Paid (xxx)

- Direct Taxes (xxx)

Cash before Extra-Ordinary Items xxx

Deferred Revenue xxx

Net Cash Flow from Operating Activities (Indirect Method) xxx

232
While preparing the Cash Flow Statement as per the Indirect Method, the Net
Profit/Loss for the period is used as the base and then adjustments are made for
items that affected the Income Statement but did not affect the Cash

While preparing the Cash Flow Statement as per the Indirect Method, Non Cash
and Non Operating charges in the Income Statement are added back to the Net
Profits while Non-Cash & Non-Operating Credits are deducted to calculate the
Operating Profit before Working Capital Changes. The Indirect Method of
preparation of Cash Flow Statement is a partial conversion of accrual basis profit
to Cash basis profit. Further, necessary adjustments are made for
Increase/Decrease in Current Assets and Current Liabilities to obtain Net Cash
Flows from Operating Activities as per the Indirect Method.

Format of Cash Flows from Operating Activities – Indirect Method

Particulars Amount

Net Profit before Tax and Extra-ordinary items xxx

Adjustments for

- Depreciation xxx

- Foreign Exchange xxx

- Investments xxx

- Gain or Loss on Sale of Fixed Assets xxx

- Interest Dividend xxx

Operating Profit before Working Capital Changes xxx

Adjustments for

- Trade and Other Receivables xxx

- Inventories xxx

- Trade Payable xxx

Cash generated from Operations xxx

- Interest Paid (xxx)

- Direct Taxes (xxx)

233
 Cash before Extra-Ordinary Items xxx

Deferred Revenue xxx

Net Cash Flow from Operating Activities (Indirect Method) xxx

Cash Flows from Investing Activities

Investing activities are the activities related to acquisition and disposal of long
term asset and other Investments which does not include cash equivalents. In
other words, investing activities include transactions and events that involve the
purchase and sale of long-term productive assets (e.g., land, building, plant and
machinery, etc.) not held for re-sale and other investments. As the cash flows
represent the extent to which expenditures have been made for intended to
generate future income and cash flows, Separate disclosure of cash flows arising
from Investing Activities is important.

Items of cash inflows from investing activities:

 Cash receipts from disposal of fixed assets (including intangibles).

 Cash receipts from disposal of shares, warrants, or debt instruments of
other enterprises and interests in joint ventures (other than payments for
those instruments considered to be cash equivalents and those held for
dealing or trading purposes)
 Cash receipts from disposal of shares, warrants, or debt instruments of
other enterprises and interests in joint ventures (other than receipts from
those instruments considered to be cash equivalents and those held for
dealing or trading purposes
 Cash receipts from the repayment of advances and loans made to third
parties (other than advances and loans of a financial enterprise)
 Cash receipts and payments relating to future contacts, forward contracts,
option contracts, and swap contracts except when the contracts are held
for dealing or trading purposes or the receipts are classified as financing
activities.

234
Items of cash outflows from investing activities:

 Cash payments to acquire fixed assets

 These payments include those relating to capitalized research and
development costs and self-constructed fixed assets
 Cash payments to acquire shares, warrants, or debt instruments of other
enterprises and interests in joint ventures (other than payments for those
instruments considered to be cash equivalents and those held for dealing
or trading purposes)
 Cash advances and loans made to third parties (other than advances and
loans made by a financial enterprise)

Format of Cash Flow from Investing Activities

Particulars Amount

Purchase of Fixed Assets (xxx)

(Add) Proceeds from Sale of Fixed Assets xxx

(Add) Interest received xxx

(Add) Dividend received xxx

Net Cash Flow from Investing Activities xxx

Cash Flows from Financing Activities

The activities which result in a change in the size and composition of owner’s
capital and borrowing of the organization are known as Financing Activities. The
separate disclosure of cash flows arising from financing activities is important
because it is useful in predicting the claims on future cash flows by the providers
of funds.

235
 Items of cash inflows from financing activities:

 Cash proceeds from issuing shares or other similar instruments

 Cash proceeds from issuing debentures, loans notes, bonds and other
short-term bowing

Items of cash inflows from financing activities:

 Cash repayments of amounts borrowed

 Payment of dividend

Format of Cash Flow from Financing Activities

Particulars Amount

Proceeds from Issue of Share Capital xxx

Proceeds from Long Term Borrowings xxx

Repayment of Long Term Borrowings (xxx)

Interest Paid (xxx)

Dividend Paid (xxx)

Net Cash Flows from Financing Activities xxx

Format of Cash Flow statement

CASH FLOW STATEMENT of ………….. For the year ended,

[As per AS – 3 (Revised)]

PARICULARS Rs. Rs.

CASH FLOW FROM OPERATION ACTIVITIES:

Net **
Profit Closing balance of Profit & Loss Account
OR **
befor Less: Opening balance of Profit & Loss Account
e Tax ***

236
Add: **

 Transfer to Reserve **

 Provision for Taxation made during the Current Year **

 Proposed Dividend made during the Current Year
 Interim Dividend paid during the year **

 Any Extra Ordinary Expenses, debited to Profit and Loss Account **

Less:

 Refund of Tax
 Any Extra Ordinary Income, credited to Profit and Loss Account **

** ***

Add: Non Operating Expenses / Items:

 Depreciation on Fixed Assets **

 Loss on sale of Fixed Assets
**
 Preliminary Expenses, Discount on issue of Share and Debenture
 Goodwill, Patent, Trade Mark Amortised (written off) **
 Interest on Long Term Borrowing (including Debenture)
**

**

Less: Non Operating Income / Items:

 Dividend and Interest Received + CA ↓

**
 Profit on Sale of Fixed Assets – CA ↑
 Rental Income **
– CL ↓
** ***

Operating Profit before charging Working Capital

***
…………………………………………………………….

Add: Decrease in Current Assets ** ***

237
Less: Increase in Current Assets **

Less: Decrease in Current Liabilities **

Add: Increase in Current Liabilities **

Operating Profit after Charging Working Capital ***

……………………………………………………………..
**
Less: Income Tax paid (Net of Tax Refund received)

Operating Profit before charging Extra Ordinary Items ***

………………………………………………………
**
Add / Less: Extra Ordinary Items

Net Operating Activities / Net Cash Flow from Operating Activities / Profit
from Operation (A) ***

CASH FLOW FROM INVESTING ACTIVITIES:

Add: Proceeds from Sale of Fixed Assets including Intangible Assets (i.e. **
Goodwill etc.)
**
Add: Dividend and Interest Received (For Non-financial Companies only)
**
Less: Purchase of Fixed Assets including Intangible Assets **

Add / Less: Extra Ordinary Items

Cash from Investing Activities (B)

***
……………………………………………………………………………….

CASH FLOW FROM FINANCING ACTIVITIES:

Add: Proceeds from Issue of Share and Debenture **

Add: Proceeds from Other Long-term Borrowing **

Less: Final Dividend paid **

Less: Interim Dividend paid **

238
Less: Interest on Debenture and Long-term Loan paid **

Less: Redemption of Share and Debenture **

Less: Repayment of Other Long-term Loan **

Add / Less: Extra Ordinary Items **

Cash from Financing Activities (C)

***
……………………………………………………………………………...

A + B + C
***
………………………………………………………

Add: Opening Cash and Cash Equivalents

Add: Cash in hand **

Add: Cash **

Add: Short-term Deposit **

Add: Marketable Securities **

Less: Bank Overdraft ** **

***

Closing Cash and Cash Equivalents

Add: Cash in hand **

Add: Cash **

Add: Short-term Deposit **

Add: Marketable Securities **

Less: Bank Overdraft ** **

***

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UTILITY OF CASH FLOW STATEMENT

The importance of cash flow statement lies in the fact that it explains the changes
in cash and gives insight to the company’s operating, investing and financial
activities. Also, cash flow statement will unveil the company’s ability to generate
cash to meet its short-term obligations, thereby assessing if company’s liquidity
and solvency position is sound.

Cash flow notion is based loosely on cash flow statement accounting standards.
It's flexible as it can refer to time intervals spanning over past-future. It can refer
to the total of all flows involved or a subset of those flows. Subset terms include
net cash flow, operating cash flow and free cash flow

Advantages of cash flow statement

1. Disclose the inward and outward movement: The primary

function carried out by a cash flow statement is to disclose the inward and
outward movement i.e. inflow and outflow of cash. It indicates all
possible changes in cash position of a firm in quantitative terms
accompanied by the reasons to support such changes. Hence, a cash
management can exercise full control over cash movement with the help
of cash flow statement.
2. It plays a vital role in short-term financial planning: It helps
in forecasting cash requirements, determining the quantity of required
cash in advance, the amount that can be generated form internal sources
and the volume expected to be acquired from outside sources. Thus, the
future course of action related to cash can be planned in the light of cash
flow statement.
3. Help to management in formulating policies related to

internal financial management: Aids Internal Financial

Management Cash flow statement is of great help to management in
formulating policies related to internal financial management. Since, any
information pertaining to the availability of cash from operations can be
obtained by means of cash flow statement. Thus, a management can make

240
 important decisions involving dividend policy, replacement of assets,
repayment of long-term loans etc.
4. Reveals Success or Failure of Cash Planning: It reveals the
extent of success or failure of cash planning. As a management may hold
comparison of cash flow of current year with projected cash budget of
that period, variations, if any with relevant cause may be detected and
necessary remedial actions can be initiated.
5. Adds Efficiency to Cash Management: Cash is the very
foundation of all business operations. Therefore, a projected cash flow
statement provides sufficient guidelines to the management for planning
and coordinating financial operations properly, effectively and efficiently.
6. Helps to determine the likely flow of cash: Projected cash flow
statements help the management to determine the likely inflow or outflow
of cash from operations and the amount of cash required to be raised from
other sources to meet the future needs of the business.

7. Supplemental to funds flow statement: Cash flow analysis

supplements the analysis provided by funds flow statement, as cash is a
part of the working capital.

8. Better tool of analysis

For payment of liabilities, which are likely to be matured in the near

future, cash is more important than the working capital. As such, cash
flow statement is certainly a better tool of analysis than funds flow
statement for short-term analysis.

Limitation of Cash Flow Statement

Cash flow statement is an important analytical tool. Yet, it is advised to

employ this technique with care and precautions for the purpose of analysis
due to the limitations attached to it. These limitations are as follows–

1. Cash flow statement does not measure the economic efficiency of one
company in relation to another. Usually a company with heavy capital

241
 investment will have more cash inflow. Therefore, inter-industry
comparison of cash flow statement may be misleading.
2. Misleading comparison over a period of time - Just because the company's
cash flow has increased in the current year, a company may not be better
off than the previous year. Thus, the comparison over a period can be
misleading.
3. Misleading inter-firm comparison- The terms of pu-chases and sales will
differ from firm to firm; Moreover, cash inflow does not always mean
profit. Therefore, inter-firm comparison of cash flows may also be
misleading.
4. Influenced by changes in management policies- The ash balance as
disclosed by the cash flow statement may to represent the real liquidity
position of the business. The cash can be easily influenced by purchases
and sales policies, by making certain advance payments or by postponing
certain payments.

5. Cannot be equated with income statements- Cash flow statement cannot

be equated with the income Statement. An income statement takes into
account both cash as well as non-cash items. Hence ne: cash flow does
not necessarily mean net income of the business.

6. Not a replacement of other statements- Cash flow statement is only a

supplement of funds flow statement and cannot replace the income
statement or the funds flow statement as each one has its own function or
purpose of preparation.

7. Net cash flow does not necessarily imply the net income of the business.
As unlike income statement, cash flow statement takes into account only
cash discarding non-cash items from its preview. Cash flow statement no
doubt depicts the cash position but the cash balance shown by cash flow
statement may not be the true representative of real liquid position of the
business and it can be easily influenced by postponing purchase and other
payments.

242
 Despite the drawbacks, of cash flow statement, it is a useful supplementary
accounting instrument serving as a barometer in evaluating profitability and
financial position of an enterprise.

Cash Flow Analysis of Sample Real Estate Companies

Table 7.1

Net Cash from Operating Activities

(Rs in Cr.)

Company Name / ANANT Indiabulls Suntek

year RAJ DLF HDIL Real Realty
-
2008 -198.15 1505.81 -3934.12 -150.36 -92.86
2009 315.57 1365.86 -1121.27 -1.06 59.51
2010 -52.57 395.24 -910.34 -25.25 -35.67
2011 -1004.48 1515.13 -2030.53 21.64 83.27
2012 -123.41 419.15 1337.47 116.25 -11.02

The above table shows the five year data of Net Cash from Operating Activities
of the selected five companies. The net cash from operating activities of Anant
Raj is -198.15 in 2008, -52.57 in 2010 and -123.41 in 2012.

The net cash from operating activities of DLF is -1505.81 in 2008, 395.24 in
2010 and 419.15 in 2012.

The net cash from operating activities of HDIL is -3934.12 in 2008, -910.34 in
2010 and 1337.47 in 2012.

The net cash from operating activities of India bulls Real is -150.36 in 2008, -
25.25 in 2010 and 116.25 in 2012.

The net cash from operating activities of Suntek Realty is -92.86 in 2008, -35.67
in 2010 and -11.02 in 2012.

243
 Diagram 7.1
Net Cash from Operating Activities

3000

2000

1000
Series1
0
Series2
Company ANANT DLF HDIL Indiabulls Suntek
-1000 Name / RAJ Real Realty Series3
year Series4
-2000
Series5
-3000

-4000

-5000

Table 7.2
Change in Net Cash from operating Activities

Company Name / ANANT Indiabulls Suntek

year RAJ DLF HDIL Real Realty
2008-09 259.26% 190.71% 71.50% 99.30% 164.09%
2009-10 -116.87% -71.11% 18.81% -2282.08% -159.94%
2010-11 -1810.75% 283.34% -123.10% 185.70% 333.45%
2011-12 87.71% -72.34% 165.87% 437.20% -113.23%

The Anant Raj Company has shown the maximum growth in Cash from
Operating Activities in 2010-11 which is 1811% and minimum between
the years 2008-09 that is -259%.The Anant Raj Company has shown a
growth rate of -259% from 2008 to 2009, -117% from 2009 to 2010,
1811% between 2010-11 and -88% between 2011-12.

The DLF Company has shown the maximum growth in Cash from
Operating Activities Loan Capital 2010-11 which is 283% and minimum

244
 between the years 2008-09 that is -191%.The DLF Company has shown a
growth rate of -191% from 2008 to 2009, -71% from 2009 to 2010, 283%
between 2010-11 and -72% between 2011-12.

The HDIL Company has shown the maximum growth in Cash from
Operating Activities in 2010-11 which is 123% and minimum between
the years 2011-12 that is -166%.The HDIL Company has shown a growth
rate of -71% from 2008 to 2009, -19% from 2009 to 2010, 123% between
2010-11 and -166% between 2011-12.

The India Bulls Real Company has shown the maximum growth in Cash
from Operating Activities in 2009-10 which is 2282% and minimum
between the years 2010-11 that is -186%.The India Bulls Real Company
has shown a growth rate of -99% from 2008 to 2009, 2282% from 2009 to
2010, -186% between 2010-11 and 437% between 2011-12.

The Sun Tek Realty Company has shown the maximum growth in Cash
from Operating Activities in 2011-12 which is -113% and minimum
between the years 2010-11 that is -333%.The Sun Tek Realty Company
has shown a growth rate of -164% from 2008 to 2009, -160% from 2009
to 2010, -333% between 2010-11 and -113% between 2011-12.

Diagram 7.2
Change in Net Cash from operating Activities

10

0
Series1
Company 2008-09 2009-10 2010-11 2011-12
-5 Name / year Series2
Series3
-10 Series4
Series5
-15

-20

-25

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 Table 7.3
Geometrical Mean of Change in Net Cash from operating Activities

Company Name / ANANT Indiabulls Suntek

year RAJ DLF HDIL Real Realty

Geometrical Mean -433.16 81.42 32.72 -459.05 54.30

It is found that DLF is showing the maximum Geometric Mean for selected study
period i.e. 81.42 followed by Sun Tek Realty 54.30, HDIL 32.72,Anant Raj -
433.16 and India Bulls Real -459.05. It means DLF is showing maximum growth
in Cash from Operating Activities.

Diagram 7.3

Geometric Mean of Change in Net Cash from operating Activities

Geometrical Mean
200.00

100.00

0.00
ANANT DLF HDIL Indiabulls Suntek
-100.00 RAJ Real Realty
Geometrical Mean
-200.00

-300.00

-400.00

-500.00

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 Table 7.4
Net Cash from Investing Activities

Company Name / ANANT Indiabulls Suntek

year RAJ DLF HDIL Real Realty
2008 -341.45 -6482 -45.11 -2155.1 -92.67
2009 -362.75 -1151.17 -50.44 -1112.05 -26.47

2010 -103.32 -2420 -260.37 -209.2 -128.66

2011 -148.48 -1949.99 -215.23 -2444.99 -43.79
2012 -110.57 1158.71 -308.25 190.2 -89.45

The above table shows the five year data of Net Cash from Investing Activities of
the selected five companies. The net cash from investing activities of Anant Raj
is -341.45 in 2008, --103.32 in 2010 and -110.57 in 2012.

The net cash from investing activities of DLF is -6482 in 2008, -2420 in 2010
and -2168.89 in 2012.

The net cash from investing activities of HDIL is -45.11 in 2008, -260.37 in 2010
and -308.25 in 2012.

The net cash from investing activities of Indiabulls Real is -2155.1 in 2008, -
209.2 in 2010 and 190.2 in 2012.

The net cash from investing activities of Suntek Realty is -92.67 in 2008, -128.66
in 2010 and -89.45 in 2012.

247
 Diagram 7.4

Net Cash from Investing Activities

3000
2000
1000 Company Name / year
0 ANANT RAJ
-1000 1 2 3 4 5
DLF
-2000
HDIL
-3000
-4000 Indiabulls Real
-5000 Suntek Realty
-6000
-7000

Table 7.5

Change in Net Cash from Investing Activities

Company Name / ANANT Indiabulls Suntek

year RAJ DLF HDIL Real Realty
2008-09 -6% 82% -12% 48% 71%
2009-10 72% -110% -416% 81% -386%
2010-11 -44% 19% 17% -1069% 66%
2011-12 26% 159% -43% 108% -104%

The Anant Raj Company has shown the maximum growth in Cash from Investing
Activities in 2010-11 which is 44% and minimum between the years 2009-10 that
is -72%.The Anant Raj Company has shown a growth rate of 6% from 2008 to
2009, -72% from 2009 to 2010, 44% between 2010-11 and -26% between 2011-
12.

The DLF Company has shown the maximum growth in Cash from Investing
Activities 2009-10 which is 110% and minimum between the years 2011-12 that
is -159%.The DLF Company has shown a growth rate of -82% from 2008 to
2009, 110% from 2009 to 2010, -19% between 2010-11 and -159% between
2011-12.

248
The HDIL Company has shown the maximum growth in Cash from Investing
Activities in 2009-10 which is 416% and minimum between the years 2010-11
that is -17%.The HDIL Company has shown a growth rate of 12% from 2008 to
2009, 416% from 2009 to 2010, -17% between 2010-11 and 43% between 2011-
12.

The India Bulls Real Company has shown the maximum growth in Cash from
Investing Activities in 2010-11 which is 1069% and minimum between the years
2011-12 that is -108%.The India Bulls Real Company has shown a growth rate of
-48% from 2008 to 2009, -81% from 2009 to 2010, 1069% between 2010-11 and
-108% between 2011-12.

The Sun Tek Realty Company has shown the maximum growth in Cash from
Investing Activities in 2009-10 which is 386% and minimum between the years
2008-09 that is -71%.The Sun Tek Realty Company has shown a growth rate of -
71% from 2008 to 2009, 386% from 2009 to 2010, -66% between 2010-11 and
104% between 2011-12.

Diagram 7.5
Change in Net Cash from Investing Activities
4

0
Company 2008-09 2009-10 2010-11 2011-12 Series1
-2 Name / year Series2
-4 Series3
Series4
-6
Series5
-8

-10

-12

249
 Table 7.6

Geometrical Mean Change in Net Cash from Investing Activities

Company Name / ANANT Indiabulls Suntek

year RAJ DLF HDIL Real Realty
11.91 37.02 -115.09 -221.16 -90.01
Geometrical Mean

It is found that India Bulls Real is showing the maximum Geometric Mean for
selected study period i.e. 127.25 followed by HDIL 100.96,Sun Tek Realty
73.43, Anant Raj -12.92 and DLF -42.46. It means India Bulls Real is showing
maximum growth in Cash from Investing Activities.

Diagram 7.6

Geometrical Mean of Change in Net Cash from Investing

Activities

Geometrical Mean
50.00

0.00
ANANT DLF HDIL Indiabulls Suntek
-50.00 RAJ Real Realty

-100.00 Geometrical Mean

-150.00

-200.00

-250.00

250
 Table 7.7
Net Cash from Financing Activities

Company Name / ANANT Indiabulls Suntek

year RAJ DLF HDIL Real Realty
2008 1076.18 8945.9 4323.84 1934.38 201.39
2009 52.71 -437.54 897.47 862.25 -49
2010 21.79 1434.95 1882.93 1150.82 170.4
2011 803.29 419 1684.37 1563.43 -45.08
-
2012 197.2 1354.43 -1029.9 -311.05 100.02

The above table shows the five year data of Net Cash from Financing Activities
of the selected five companies. The net cash from financing activities of Anant
Raj is 1076.18 in 2008, 21.79 in 2010 and 197.2 in 2012.

The net cash from financing activities of DLF is 8945.9 in 2008, 1434.95 in 2010
and -1354.43 in 2012.

The net cash from financing activities of HDIL is 4323.84in 2008, 1882.93 in
2010 and -1029.9 in 2012.

The net cash from financing activities of Indiabulls Real is 1934.38 in 2008,
1150.82 in 2010 and -311.05 in 2012.

The net cash from financing activities of Suntek Realty is 201.39 in 2008, 170.4
in 2010 and 100.02 in 2012.

251
 Diagram 7.7
Net Cash from Financing Activities

10000

8000

6000 Series1
Series2
4000
Series3
2000 Series4
Series5
0
Company 2008 2009 2010 2011 2012
-2000 Name /
year

Table 7.8
Change in Net Cash from Financing Activities

Company Name / Indiabulls

year ANANT RAJ DLF HDIL Real Suntek Realty
2008-09 -95% 105% -79% -55% -124%
2009-10 -59% 428% 110% 33% 448%
2010-11 3587% -71% -11% 36% -126%
2011-12 -75% -423% -161% -120% 322%

The Anant Raj Company has shown the maximum growth in Cash from
Financing Activities in 2010-11 which is 3587% and minimum between the years
2008-09 that is -95%.The Anant Raj Company has shown a growth rate of -95%
from 2008 to 2009, -59% from 2009 to 2010, 3587% between 2010-11 and -75%
between 2011-12.

The DLF Company has shown the maximum growth in Cash from Financing
Activities 2010-11 which is -71% and minimum between the years 2009-10 that
is -428%.The DLF Company has shown a growth rate of -105% from 2008 to

252
2009, -428% from 2009 to 2010, -71% between 2010-11 and -423% between
2011-12.

The HDIL Company has shown the maximum growth in Cash from Financing
Activities in 2009-10 which is 110% and minimum between the years 2011-12
that is -161%.The HDIL Company has shown a growth rate of -79% from 2008
to 2009, 110% from 2009 to 2010, -11% between 2010-11 and -161% between
2011-12.

The India Bulls Real Company has shown the maximum growth in Cash from
Financing Activities in 2010-11 which is 36% and minimum between the years
2011-12 that is -120%.The India Bulls Real Company has shown a growth rate of
-55% from 2008 to 2009, 33% from 2009 to 2010, 36% between 2010-11 and -
120% between 2011-12.

The Sun Tek Realty Company has shown the maximum growth in Cash from
Financing Activities in 2008-09 which is -124% and minimum between the years
2009-10 that is -448%.The Sun Tek Realty Company has shown a growth rate of -
124% from 2008 to 2009, -448% from 2009 to 2010, -126% between 2010-11
and -323% between 2011-12.

Diagram 7.8
Change in Net Cash from Financing Activities

40
35
30
25 Series1
20 Series2
15 Series3
10 Series4

5 Series5

0
-5 Company 2008-09 2009-10 2010-11 2011-12
Name / year
-10

253
 Table 7.9
Geometrical Mean of Change in Net Cash from Financing
Activities
Company Name / ANANT Suntek
year RAJ DLF HDIL Indiabulls Real Realty
Geometrical Mean 378.72 -41 -40.30 -28.72 100.28

Diagram 7.9
Geometrical Mean of Change in Net Cash from Financing
Activities

Geometrical Mean
400.00
350.00
300.00
250.00
200.00
150.00 Geometrical Mean
100.00
50.00
0.00
-50.00 ANANT DLF HDIL Indiabulls Suntek
-100.00 RAJ Real Realty

254
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