1

A Summer Internship Project Report

On

Financial Analysis of M/s Vaishnavi Estates Pvt Ltd

For The Partial Fulfillment of the Requirement for the Award of

Bachelor of Business Administration

BBA VE, CLASS OF 2020-23

Under The Guidance & Supervision Of:

PROF. DISHA PATHAK

Submitted By: KAVYA KONDAVEETI

Enrollment No.: 228

Amity Global Business School Hyderabad

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DECLARATION

I Kavya Kondaveeti, a student at Amity Global Business School, Hyderabad hereby declare that the
Project Titled “Financial Analysis of M/s Vaishnavi Estates” is the record of authentic work done by me
for submission of the Summer Internship Project as a partial fulfilment and had not been given in any
other university or Institute for the award of any other Degree. An attempt has been made by me to supply
all relevant and key details about the topic to support the theoretical aspects and practical evidence related
to the topic.

Date: 08.08.2022

Place: Hyderabad

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ACKNOWLEDGMENT

My heartfelt sincere thanks to the Director General, Amity Global Business School Hyderabad,
for giving me this opportunity for doing my project in “Financial Analysis of M/s Vaishnavi
Estates”.

My faculty guide Ms. Disha Pathak has been incredibly supportive and helped me to learn and
complete the project. My sincere thanks to my Industry guide and company M/s Vaishnavi
Estates Pvt. Ltd.

My sincere thanks to my family member who stood by me motivating me to complete my project

successfully.

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FACULTY GUIDE CERTIFICATE

This is to certify that Kavya Kondaveeti, student of semester V class of BBA 2020-2023 has
completed the Summer Internship Project Titled “Financial Analysis of M/s Vaishnavi Estates”
is a Bonafide work and has worked under my guidance sincerely for the partial fulfilment of
Master of Business Administration for the year 2020– 2023 to the best of my knowledge and
wish him/her success for the future endeavours..

(Name & Sign of Faculty)

Date: 08.08.2022

Place: Hyderabad

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COMPANY CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN This is to certify that Kavya Kondaveeti, BBA, VE

Amity Global Business School Hyderabad has done project work in the company on “Financial
Analysis of M/s Vaishnavi Estates” under the guidance of Ms Kavya Kondaveeti Vaishnavi
Estates, Hyderabad, towards the fulfilment of the award of “Bachelor of Business
Administration” during the period 26th of May 2022 to 26th of July 2022.

(Industry Guide Signature)

Date: 30.05.2020

Place: Hyderabad

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INDEX

SNO. TOPIC PAGE

NO.
1. CHAPTER 1
2. CHAPTER 2
3. CHAPTER 3
4. CHAPTER 4
5. CHAPTER 5

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Chapter 1

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Meaning of Financial Analysis

Financial statements present a mass of complex data in absolute monetary terms

and reveal little about the liquidity, solvency and profitability of the business. In
financial analysis, the data given in financial statements is classified into simple
groups and a comparison of various groups is made with one another to pinpoint the
strong points and weaknesses of a business. For instance, if all items relating to current
assets are placed in one group while all items relating to current liabilities are placed
in another group, the comparison between the two groups will supply useful
information. The figures given in financial statements do not say anything
themselves. The analysis of these figures helps the interested reader by giving tongue
to these mute heaps of figures.

In the words of Finney and Miller:

"Financial analysis consists in separating facts according to some definite plan,
arranging them in groups according to certain circumstances and then presenting them
in a convenient and easily read and understandable form."

In the words of John N. Myres:

Financial statement analysis is largely a study of relationships among the various
financial factors in a business, as shown by a single set of statements and a study of
the trends of these factors as shown in a series of statements.

In the words of Finney and Miller:

Financial analysis consists of separating facts according to some definite plan.
Arranging them in groups according to certain circumstances and then presenting them

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in a convenient and easily read and understandable form.

In the words of John N. Myres
Financial statement analysis is largely a study of relationships among the various
financial factors in a business, as shown by a single set of statements and a study of
the trends of these factors as shown in a series of statements."
Based on above-mentioned definitions, the key features of financial
analysis is
(1) To present the complex data contained in financial statements in simple and
understandable form.
(2) To classify the items contained in financial statements in convenient and
rational groups.
(3) To make comparisons between various groups to draw various conclusions.

Types or Methods of Financial Analysis

Financial analysis is an art and as such there are various approaches towards
financial analysis. Two basic approaches or types of analysis are:
(1) Horizontal Analysis

(2) Vertical Analysis

1) Horizontal Analysis - In such a type of analysis, financial statements for a

number of years are reviewed and analyzed. Figures for two or more years are
contained in such type of analysis and these figures are placed side-by-side to facilitate
comparison. Such analysis writes down the increase or decrease in these items not only in
figures but also in percentage form. Thus, it involves making comparisons and proving
relationships among related items of an enterprise for a number of

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years. When data about sales, cost of production, profits etc. are compared for two or
more years of a firm, they show the areas of strength and weakness of the enterprise.
It also helps in knowing the trend of the business. Since such type of analysis is based
on the data from year-to-year rather than only one year, it is also called Dynamic
Analysis'.
(2) Vertical Analysis: In such type of analysis, financial statements for a single
year or on a particular date are reviewed and analyzed with the help of proper devices
like ratios. It involves a study of the quantitative relationship among myriad items of
Balance Sheet or Statement of Profit & Loss of a single period. The items in the
financial statements are expressed as a percentage of total, and the total is taken as
equivalent to 100. Statements having such analysis are termed as Common Size
Statements'. The Common Size Statement of Profit & Loss shows each element of Cost as a
percentage of sales. It helps in analyzing costs and operating results for the year.
Similarly, in a common size Balance Sheet various assets can be expressed as
percentage of total assets. Since this type of analysis is based on the data of a single year, it is
also called, Static Analysis'. Vertical analysis is useful in comparing the performance of several
companies in the same group or departments in the same company.
Vertical analysis is not especially useful for a proper analysis of the company's financial
position because it depends on the data of a single period while the Business is a dynamic
process. In comparison to vertical analysis, horizontal analysis is more useful because it
brings out more clearly the nature and trends of current changes affecting the enterprise.

Objectives or Purpose of Financial Analysis

The purpose of financial analysis depends on the needs of the person who is
analyzing these statements. These varying needs may be
(1) To Measure the Earning Capacity or Profitability: According to Robert

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Anthony, the overall aim of a business is to earn a satisfactory return on the

funds invested in it, consistent with keeping a sound financial position. Financial
Analysis helps in finding whether adequate profits are being earned on the capital
invested in the business. It is also shown by analysis of financial statements whether
these profits are increasing or decreasing over the years. For this purpose, the financial
statements of a few years are considered to compute the change in profits over
the years. Such analysis helps in finding future profitability or earning ability of the business.

(2) To Measure the Solvency: It can be found from financial analysis whether the business can
pay its short-term and long-term liabilities in time. For example, the liquidity ratios (current
ratio and quick ratio) are calculated to find whether the business enterprise has sufficient
liquid funds to meet its short-term liabilities and Debt Equity Ratio is calculated to find the
business enterprise can repay the long-term liabilities.

(3) To Measure the Financial Strength: The purpose of financial analysis is to

assess the financial potential of the business. Analysis helps in supplying answers to
the following questions:
(I) Funds required for the purchase of new machinery and equipment will be
available from internal resources of the business or not?
(II) Based on the current reputation of the business, how much funds can be raised
from external sources?

(4) To Make Comparative Study with other Firms: The purpose of financial
analysis is to help the management to make a comparative study of the profitability of
various firms engaged in the same trade. Such comparison helps the management to study
the position of their firm with respect to sales, expenses, profitability and working capital
etc. in comparison to other firms.

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(5) To Measure the Capability of Payment of Interest and Dividend: The purpose of the
analysis is to assess whether the firm will have sufficient profits to pay the
amount of interest in time and whether it could pay the dividend in future
at a higher rate. Analysis also says the number of times the profit is in comparison
to interest. Analysis further writes down the extent to which the profit of the firm may
decrease without in any way affecting its ability to meet interest and dividend
Obligations.

Uses of Financial Analysis

Financial analysis can be used to take a variety of decisions in the following areas
(1) For taking Investment Decisions Analysis of financial statements helps an
investor to know whether the firm is fulfilling his expectations about the
payment of dividend, appreciation in the value of investments made by him
and safety of his investment. It helps him to take decisions about continuation
or discontinuation of his investment in the firm.
(2) For taking Credit Decisions Analysis of financial statements is useful in
deciding whether to grant or extend credit to a customer.
(3) For taking Dividend Decisions Such analysis is useful in deciding about
how much part of the profit is to be distributed as dividend and how much
to keep.
(4) For Estimating Trend of the Business Analysis of financial statements for
several years reveals the trend of costs, sales, profits etc. It helps in
assessing the future growth potential of the firm.
(5) For Taking Various Managerial Decisions Analysis of financial financial
statements show the liquidity, solvency and profitability of the business
enterprise. It helps in finding the weak spots of the business. Such
information enables the management to take various decisions.

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Significance or Importance of Financial Analysis

At present, the analysis of financial statements has become of general interest. Various parties
have become interested in the financial statements of a company due to assorted reasons.
Different people look at the same financial statements from the same statement but from
different angles.

Significance for Management: Management of a firm is always interested in

the solvency, profitability and the capital structure of the firm. They want to make sure
that the business must be in a solvent position to pay the debts as and when they fall
aue. Similarly, they are interested not only in the current year's profit but also in the
ability of the business to earn more profits in future. By comparing the financial
statements of their business with the financial statements of other firms in the same
Trade management can draw significant conclusions about the sales, profits, expenses etc.

Significance for Government: Government can judge based on analysis of financial statements
which industry is progressing on the desired lines and which industry needs financial help. The
government can take a decision to reduce the GST in those industries where the profit margins
are low in comparison to the cost of production. On the contrary, if the profit margins are too
high in comparison to the cost of production, the Government can increase the GST or can
enforce the price regulations.
Significance for Financial Institutions: All the financial institutions which supply finance to
ability of the business and its long-term solvency. They want to assess not only the present
position of the business enterprise but also its likely position in the future. Analysis of financial
statements helps them in ascertaining things.

Significance for Stock Exchange Authorities: They analyze the financial

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statements of a company to decide its price earnings ratio and earnings per share (E.P.S.). With
the help of such analysis, the market price of a company's share is figured out.

Significance for Taxation Authorities: They analyze the financial

statements of a company to know whether the financial statements have been prepared
following the legal provisions and whether the figures of production, sales and profits are
correct for the purpose of assessment of GST and income tax etc.

Limitations of Financial Analysis

Financial analysis helps the interested parties to assess their earning ability and financial
soundness of a business enterprise. But such analysis has its own limitations. Such limitations
should be kept in mind while using the information's provided by the financial analysis. Some
of the limitations are as follows -

Limitations of Financial Statements: Financial analysis is based on financial

statements. But financial statements themselves suffer from certain limitations, hence
The limitations of financial statements are also the limitations of their analysis. For
example,
(i) Sometimes the information given in financial statements is incomplete and unauthentic,
(ii) Financial Statements are based on accounting concepts and conventions. As such, the utility
of financial analysis is decreased due to the shortcomings of financial statements.

Affected by Window-dressing: Some firms resort to window-dressing their

financial statements to cover up bad financial position on the eve of accounting date.
For example, they may not record the purchases made at the end of the year or they
may overvalue their closing stock. In such cases, the results obtained by analysis of
financial statements will be misleading.

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Do not Reflect Changes in Price Level: Figures given in financial statements

do not show the effect of changes in price level. As such, the comparison of past year
figures with the current year's figures may lead to misleading conclusions. For example, if
in 2017 a firm sells 10,000 meters of cloth for F10 lac and the same firm in 2018 sells
the same type of 10,000 meter of cloth for F15 lac, it shows an increase of 50% in
sales, while, in actual, the sales have not increased at all. As such, sufficient
Adjustments must be made for changes in price level before making the analysis.

Different Accounting Policies: If two firms adopt different accounting policies, the comparison
between the two will be unreliable. For example, one firm may supply depreciation on original
cost method, while the other firm may adopt the written-down value method for supplying
depreciation. Similarly, the method of valuation of closing stock may also differ from one firm
to another. The results obtained from the comparison of the financial statements of such firms
may be a misleading picture.

Effect of Personal Ability and Bias of the Analyst: Figures given in

financial statements do not speak by themselves; hence, any conclusion can be drawn
from these figures. Conclusions obtained from the analysis of these figures are affected
to a great extent by the personal ability and knowledge of the analyst. For example, for
calculating return on capital' one analyst may consider the profits after taxes,
while the other analyst may consider the profits before taxes. Similarly, the term
Capital may mean only the Shareholder's Funds for one analyst, while the other
analyst may take the 'Shareholder's Funds and Long-Term Debts' as capital.

Difficulty in Forecasting: Financial statements are a record of past events and

historical facts. In the fast changing and developing modern business, the analysis of
past information may not be of much use in future forecasting. Continuous changes

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take place in the demand of the product, policies adopted by the firm, the position of
competition etc. As such, no estimate based on the analysis of historical facts can be
made for the future.

EQUITY & LIABILITIES

1. Money received against share warrants
2. Share Application money pending allotment
3. Deferred Tax Liabilities
4. Other Long-term Liabilities- for example: Premium Payable on
Redemption of Debentures

ASSETS
1. Capital Work in Progress
2. Intangible Assets under Development
3. Deferred Tax Assets
4. Other Non-Current Assets-For example Unamortized Expenses.
5. Bank Deposits with more than 12 months maturity.
Note: Preliminary Expenses and Unamortized Expenses such as Share Issue Exp., Underwriting
Commission will not be given in the examination in any of the above-mentioned chapters. Also,
Patents and Copyrights, Contingent Liabilities and Commitments will not be evaluated.
Hence, the Illustrations and Questions in the Chapters on Comparative Statements, Common
Size Statements, Accounting Ratios and Cash

Tools for Financial Analysis:

(1) Comparative Statements
(2) Common Size Statements
(3) Trend Analysis
(4) Accounting Ratios

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(5) Cash Flow Statement

(6) Funds Flow Statement
(7) Break-Even Point Analysis

(1) Comparative Statements: When financial statements figure for two or more
years are placed side-by-side to help comparison, these are called Comparative
Financial Statements'. In such a statement figure of production, revenue from
Operations, expenses, profits etc. are put side-by-side to draw conclusions about the
profitability and financial health of the business. It also writes down the trend of change
as well as the strong points and weak points of the enterprise. Comparative statements
have been discussed in this chapter.

(2) Common Size Statements: In these statements, various figures are converted
into percentages to some common base. In the statement of profit and loss, revenue from
operations figure is taken at 100 and all other figures are expressed as percentage of
revenue from operations. Similarly, in the balance sheet total assets are taken at 100 and
all assets are expressed as a percentage of the total.

(3) Trend Analysis: It is one of the most useful forms of horizontal analysis in making
comparative study of the financial statements for several years. For calculating trend
percentages any year is selected as the 'base year'. Each item of the base year is assumed to
equal to 100 and on that basis the percentage of each item of each year is calculated. The
trend percentage is helpful in revealing the increase or trend decrease in distinct items.

(4) Accounting Ratios: A ratio is simply one number expressed in relation to

another and a study of the relationships between assorted items or groups of items is
known as 'ratio analysis'. It simplifies and summarizes a long array of accounting data

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to supply useful information about liquidity, solvency, profitability etc.

(5) Cash Flow Statement: It shows the inflows and outflows of cash and cash
equivalents during a particular period and analyses the reasons for changes in balance
of cash between the two balance sheet dates. A firm may earn huge profits, yet it may
have paucity of cash or when it suffered a loss it may still have plenty of cash. The
reasons for these deviations can be analyzed and understood by preparing cash flow
Statement.

COMPARATIVE STATEMENTS
To estimate the future progress of a firm, it is necessary to investigate its past
performance. For this purpose, it becomes essential to make comparative study of its
financial statements for two or more years.
When financial statements figure for two or more years is placed side-by-side to
facilitate comparison, these are called Comparative Financial Statements.' Such
statements not only show the absolute figures of various years but also support
columns to show the increase or decrease in these figures from one year to another.
In addition, these statements may also show the change from one year to another in
percentage form. Such comparative statements are of immense value in forming the
opinion about the progress of the enterprise.
When financial statements of two or more years of the same firm are presented and
compared, it is known as inter-period comparison or intra-firm comparison. When
financial statements of two or more firms are compared over several years, this is
known as inter-firm comparison.

METHODOLOGY
The review is exact in nature with an emphasis on surveying the functioning capital

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administration of the development business according to the perspective of liquidity and

movement. The review includes optional information as it were. The optional information was
removed from the concentrate on units distributed yearly reports for yearly reports of the
review units for a time of ten years. These reports are budget summaries, books of records,
yearly reports, and brochures.

Writing connecting with the review was accumulated as gathered was accumulated of Social
Science Research, New Delhi, and the School of Economics, Delhi gathered optional
information from the Indian Institute of Management, Bangalore, Documentation l of Social
Science Research New Delhi, and School of Economics, Delhi University, New Delhi. It the co
-connected with the functioning capital administration of the development business.
The research was created using data from Vaishnavi Estates Pvt Ltd and the National Relators
Association India
The essential data was gathered using the following methods and techniques:
 Talking with those who have experience in the industry to learn about its past and present
conditions.
 Conversation with Irving Properties employees.
 Gather information from the internet and Vaishnavi Estates Pvt Ltd prospectus, annual
report, brochures, and other internal documents.

Structure Analysis
The information has been dissected with the help of various bookkeeping and factual methods
such as ratios, student t-tests, co-efficient of variety any relationship investigation. The
proportion examination has been employed to figure out the liquidity and movement places of
the construction business. T-tests have been used to find assuming there is any huge distinction
in the liquidity and movement positions among these selected companies. The co-effective
variety has been used to test the consistency of the liquidity and activity proportions of the
concrete organizations. The connection examination has been used to find out the
interrelationship among the liquidity proportions of the construction organizations over the

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review period.

LIMITATIONS
The limitations are the risks involved in the construction business. Here is a table depicting the
following risks:
Risk to the following party Risk description
Contractor Labour and Equipment Productivity
Quality of work
Labour, Equipment, and Material Availability
Safety
Defective Material
Contractor Competence
Inflation
Actual Quantities of Work
Labour Dispute

Owner Differing Site Conditions

Defective Design
Site Access/right of way allows and
ordinances
Changes in Government Regulations
Delay payment of contract
Changes in Work
Financial Failure – any party
Shared

Undecided Acts of God

Third-party delays
Defensive Engineering
From: http://cns.ou.edu/Bill/files/research/Risk%20Management.doc p. 8.
LEARNING OBJECTIVES :
• explain the nature and significance of financial analysis;
• find the goals of financial analysis;
• describe the various tools of financial analysis;
• describe the limitations of financial analysis;
• prepare comparative and common size statements and interpret the data given there;
• calculate the trend percentages and interpret them.

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Primary Data:
Comparative Balance Sheet
Relative explanations or near fiscal reports are proclamations of monetary place of a business at
various periods. These assertions help in deciding the benefit of the business by comparing
monetary information from at least two bookkeeping periods.
The information from at least two periods has refreshed one next to the other, which is the reason
it is otherwise called Horizontal Analysis. The upside of such an examination is that it aids
financial backers with distinguishing the patterns of business, really looking at an organization's
advancement and furthermore contrasting it and that of its rivals.
The monetary information will be viewed as relative just when a similar arrangement of
bookkeeping standards is being used for setting up the proclamations.

A comparative balance sheet not only supplies the state of assets and liabilities in different time
periods, but it also supplies the changes that have taken place in individual assets and liabilities
over different accounting periods.

The accompanying focuses ought to be considered while examining a relative monetary record
1. The present monetary and liquidity position (concentrating on working capital)
2. The monetary place of the business eventually
3. The benefit of the business

Steps to make a comparative balance sheet

1. Decide the outright worth of resources and liabilities connected with the bookkeeping time
frames.
2. Decide outright changes in the things of the monetary record comparative with the
bookkeeping time frames being referred to.
3. Work out the rate change in resources and liabilities by contrasting the current year's values
and the upsides of past bookkeeping periods.

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COMPARATI
VE
STATEMENT
OF:
VAISHNAVI
ESTATES Audit Provisio Estimate Project Project Projecte Projecte
PVT LTD ed nal d ed ed d d
Mar-
YR Ending--> 20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
CURRENT
ASSETS
Raw materials
a) Imported 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(Months
consumption)
b) Indigenous 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(Months
consumption)
Work - in-
Progress 0.00 0.00 4.71 9.92 9.88 0.00 0.00
(months cost of
production)
Finished Goods 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(months cost of
sales)
Receivables -
Domestic 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(months
domestic sales)
Receivables -
Export 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(Months export
sales)
Advances to
suppliers of
RM &
Stores/spares&
consumables. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Stores &
Spares
Other current 0.00 0.00 0.09 0.18 1.34 0.90 0.00
assets include.
Cash & bank
balances,
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investments &
deferred
receivables due
within one-
year, Advance
payment of
taxes etc.
TOTAL
CURRENT
ASSETS 0.00 0.00 4.80 10.10 11.21 0.90 0.00
CURRENT
LIABILITY
Working
Capital limits
from Banks 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Creditors for
purchase of
raw materials, 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(Months
purchase)
Advances from
customers. 0.00 0.00 0.50 2.70 4.00 0.00 0.00
Statutory
liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Installments of
Term Loans
payable within
one year 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other current
liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Current
Liabilities 0.00 0.00 0.50 2.70 4.00 0.00 0.00

NATURE OF THE STUDY:

The review can be called exact in nature due to gaining a deeper insight into the huge parts of the
issue such as the relativity of the targets of the study. The scientist wants to use current realities
and data accessible in various secondary sources to make a basic assessment and after starting
here view, the nature of the review will likewise become logical.

source of data

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Each examination depends on sound realities and information that are gathered by the researcher.
The sort of information gathered, and the techniques used to gather the information is an
especially important part of the examination.
Involves both strategies for information assortment for his benefit. But researcher gives more
accentuations on optional information because the specialist undertakes research in Financial
Performance rehearses for which the scientist needs generally Annual reports and records from
the chosen organizations, which are in nature auxiliary data. The researcher should be extremely
cautious in using auxiliary information and make a moment of scrutiny because it is simply
conceivable that the auxiliary information might be unacceptable or might be inadequate in the
setting of the issue, which the specialist needs to study. The specialist must, before using the
optional information, see that the gang of
I) Reliability of data
(ii) Suitability of information
(iii) Adequacy of information.
It is an observational review, so the student has followed a logical way to deal with designing the
research strategy for examination. For this study, the student is using secondary data as a
wellspring of data for consequent research, for example, the Annual Reports, sites and other
publications.

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CHAPTER 2

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REVIEW LITERATURE

1. Financial ratios and financial statements analysis by Jagadish R. Raiyani and R.B
Bhatsana

 The focal point of financial analysis is on key figures in the budget summaries and the
huge relationship that exists between them.
 The investigation of the fiscal summary is a course of assessing the connection between
part portions of budget reports to better understand the position and execution of a firm.
 The main assignment of the monetary expert is to choose the data pertinent to the choice
practical from the all-out data contained in the fiscal summaries.
 The next step is to organise the data to feature critical connections. The last step is
understanding and reaching inductions and determinations.
 In short, the monetary examination is the course of determination, connection and
assessment.

2. Corporate financial analysis by Blaine Robertson

 This article aims to give essential information about monetary investigation ex-present
and accordingly on assess the business subject advancement in a space of action, liquidity
productivity and obligation, to uncover qualities and amazing open doors that the
business subject ought to depend on.
 Moreover, it likewise means to decide shortcomings and dangers that could lead them to
tough spots and considering the outcomes to give measures to work on the arrangement
of monetary financial examination of the business subject.

3. FINANCIAL REPORTING AND ANALYSIS BY CHARLES H GIBSON

 This book concentrates on using financial accounting information properly. A basic

understanding of generally accepted accounting principles and traditional assumptions of
the accounting model are introduced.
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 This aids the user in recognizing the limits of financial reports. The ideas that underlie
financial reports have developed over several hundred years.
 This development continues today to meet the needs of a changing society.
 A review of the evolution of generally accepted accounting principles and the traditional
assumptions of the accounting model should help the reader understand the financial
reports and thus analyze them better.

4. Analysis of Financial Statements by NCERT

 evaluates the ongoing productivity and functional effectiveness of the firm in general as
well as its various offices to pass judgment on the monetary soundness of the firm.
 discovers the general significance of various parts of the monetary place of the firm.
distinguish the explanations behind the change in the productivity/monetary position of
the firm.
 passes judgment on the ability of the firm to reimburse its obligation and evaluate the
now as well as the drawn-out liquidity position of the firm.

5. Financial statement analysis by Mumbai University (PGDM SEM 1)

 Understands the meaning and types of financial statement.

 Knows the parties interested in financial statements
 Understands the goals of financial statements
 Explains the basics of financial statements

6. Analysis of Financial statements by DK Goel

 portray the target of reviews of fiscal summaries, the kinds of review reports, and the
significance of viable inside controls;
 distinguish and depict data sources that experts use in fiscal summary examination other
than yearly budget reports and valuable data;
 portray the meaning in the budget report examination system.

7. Cashflow Management by Anil. B Roy Chowdhury

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 Decreasing the occasional swings in income - maybe by tracking down new purposes for
abundance creation limit in calm periods, or creating markets which are counter-
occasional to existing incomes

8. Financial Management by Indian Institute of Banking and Finance

 The impact of government regulations;

 The impact of changes in general economic conditions;
 The importance of marketing campaigns to maintaining and increasing market share;
 The importance of proper geographic selection and political stability;

9. International Financial Statements by Thomas R. Robinson CFA institute

 Assessing a value speculation for consideration in a portfolio.

 Assessing a consolidation or obtaining up-and-comer.
 Assessing an auxiliary or working division of a parent organization.

10. The art of company valuation and financial statements by Nicolas Schmidlin

 Aided me in understanding the importance of both financial and nonfinancial measures in

the analysis of corporate performance

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CHAPTER 3

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COMPANY PROFILE
In the supremely dynamic and competitive sphere of property development, one name has
consistently been a trailblazer, setting the trends for others to follow. The innovation-led, future-
focused Vaishnavi Estates Pvt Ltd in 1999 by Mr Panduranga Reddy, the company has been the
pioneering force behind the rapidly changing skyline of two states (AP & TG), with
developments that span the residential, commercial and hospitality sectors. In just 18 years,
Vaishnavi, with the spirit of innovation at its core, has carved a niche for itself as an industry
benchmark for quality, customer focus, robust engineering, in-house research, uncompromising
business ethics and the unswerving commitment to timeless values and total transparency in
every aspect of its business.
These exceptional attributes have made Vaishnavi Estates Pvt Ltd one of Hyderabad’s most
preferred real estate brands in Hyderabad.
While all Vaishnavi projects bear the hallmark of architectural and technological innovation,
what sets them apart is the strong vision of the company, based on enduring values such as
Punctuality, Quality, Reliability, Speed and Transparency, and superior execution capability.

OUR MISSION
To transform the urban landscape by developing, owning, and investing in real estate in the
Greater Hyderabad market with a well-earned reputation to match.
Morals. We are solid in our uprightness, trustworthiness, and reasonableness.
Security and Health. We are steady in guarding individuals from mischief, and we give a sound
and secure neighborhood for the people of Hyderabad.
Quality. We are enthusiastic about greatness and taking care of our responsibilities right the first
time. Our standing relies upon our conveyed esteem according to each client and the local area.
Individuals. We move each other with significant work brimming with reason, testing
advancement potential open doors, and compensating professions. We look to be the business of
decision in our industry.
Culture. We effectively fabricate different, comprehensive, and cooperative living spaces where
all perspectives are invited, transparency is energized, and collaboration and legitimacy are

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foundations. We are glad for what we do and how we make it happen — and we appreciate
getting it done.
Connections. We fabricate positive, long-haul associations with our clients, joint-adventure
accomplices, subcontractors, providers, and partners that are based on trust, regard, and
cooperation.
Advancement. We create and apply elite innovation. We tune in, learn, and search out the
smartest thoughts. We discourage carelessness and persistently get to the next level.
Supportability. We work on personal satisfaction in networks where we work about
neighborhood societies, drawing in nearby individuals, and safeguarding the climate.

Vaishnavi Pvt Ltd goes for the gold by reinforcing associations with existing clients, planners,
engineers, government and confidential associations while proactively looking for new open
doors broadly.
The board perceives each stage - assessing, offering and developing - as basic parts inside the
gamble of the executive's model, yet additionally imperative strides toward creating entrust with
new and existing clients. So, we continually put resources into talented preparation for our kin,
work on assessing and projecting the board divisions and keep up with clear connections of
correspondence throughout divisions and keep up with clear connections of correspondence all
through the association. Vaishnavi Pvt Ltd Constructions is focused on what's in store.
Our vision is to be the partner of choice for those who believe that smart, thoughtful real estate
development changes lifestyles for the better. We are committed to creating world-class leading
developments.
We believe that we must consistently adhere to our core values to remain successful. Our values
permeate every aspect of our company and help us develop desirable spaces that add value to the
urban environment-the key to our approach.

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Departments in Vaishnavi Estates Pvt Ltd

 Finance and Accounts Department

 Sales and Marketing Department
 Human Resource and Admin Department
 Purchase Department
 Commercial Department
 Land Department
 Estate Department
 IT Department
 Engineering Department
 Construction Department
 Architecture Department
 Security Department
 Transport Department

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INDUSTRY ANALYSIS
After China, India has a population of about 1.1 billion, and by 2030, it's expected that it would
surpass China in terms of population. Real GDP (Gross Domestic Product) growth has increased
to an average of 6% annually since 1992 because of its economic transition during the past ten
years.
Especially in the services sector, India is becoming a significant business hub. Given that
demand for real estate is mostly influenced by company growth and demographic trends, the
nation's favorable demographics and rapid economic growth make it an appealing location for
real estate investors.

Historically, India's real estate market was unorganized and characterized by several barriers to
organized trade, including the lack of a centralized title registry offering title insurance, a lack of
uniformity in local laws, and a lack of transparency in the real estate market.
The Indian housing market is supposed to enroll a CAGR (Compound Annual Growth Rate) of
over 15% during the figure period.
The country's housing market was affected by the COVID-19 pandemic. What's more, the
secluded area was the most terrible hit as severe lockdown estimates across significant urban
communities in India affected lodging deals as home enlistments were suspended and home
credit payment was slow. Nevertheless, the area is in a recuperating stage because of an
expansion in house deals, new venture dispatches, expanding interest in new office and business
spaces, and so on.

Nevertheless, the land is the second biggest area in the country after agribusiness in as far as
giving businesses open doors. In addition, the development of the housing market in the nation is
upheld by expanding modern exercises, fast urbanization, and further developed pay levels. This
is further adding to the economy of the country. Furthermore, the government has introduced key
policies for the development of the real estate sector, such as the Real Estate Regulatory Act
(RERA) and the Benami Transactions Act. The government is also supplying a boost to
affordable housing construction, interest subsidies for home buyers, service tax exemption,
Dividend Distribution Tax (DDT) exemption, PR for foreign investors, etc.

Significant developers are zeroing in on reasonable and mid-range lodging units to satisfy
expanding needs in the country. Besides, the development is driven by varied factors like quick
urbanization, an ascent in the number of family units, simple accessibility of home credits, and
so forth.
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In the primary quarter of 2021, a greater number of than 58,300 units were sold, with Mumbai
Metropolitan Region (MMR) and Pune holding more than 53% of the deals. Urban areas in
southern India, like Bangalore, Hyderabad, and Chennai, contributed practically 27% of the deals
in the undisclosed area, and the NCR district offered over 15% part of the deals.

However, a more noteworthy number of new lodging projects were sent off, which outperformed
the lodging deals in the country. More than 62,000 lodging units were sent off in 2021 contrasted
with 41,000 lodging units in 2020. In the meantime, Hyderabad kept hearty development in the
stockpile of new lodging units, with 12,600 lodging units in 2021 contrasted with 3,300 lodging
units in 2020. Additionally, Pune and Mumbai Metropolitan Region (MMR) saw huge
development paces of 75% and 40%, separately.

Mumbai Metropolitan Region (MMR) assumes a crucial part in the improvement of the
restricted area of supply and retention of lodging units among significant urban communities,
and this request is driven by stamp obligation cuts, limits, and decreased home credit rates.
Moreover, the business part of the southern business sectors like Bengaluru, Chennai, and
Hyderabad stayed reliable.

Many organizations, including consultancies and those having a place with the BPM, IT, and
Banking, Financial, and Insurance Services (BFIS) areas, are creating enormous interest for
office space in the Indian housing market because of high potential and loosened up FDI
standards. Also, Mumbai counseling firms offered over 36% interest for absolute office space
renting.

Furthermore, Bangalore is driving in India concerning the most elevated volume of office
assimilation, with more than 7.26 million square feet (about twice the area of a large shopping
mall), trailed by Hyderabad. In New Delhi and the National Capital Region (NCR), most interest
is contributed by Grade A workplaces' space retention.

Moreover, in 2021, the recharging of renting exercises was ascending in the main six business
land center points Bengaluru, Mumbai, Pune, Chennai, Gurugram, and Noida. More than 7,400
leases crossing around 90 million square feet (about the area of Philadelphia Airport) region

34
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were to be restored. Besides, Mumbai holds the most elevated part of over 40% in renting
recharging action, trailed by Pune with a 17% offer.

In 2020, different areas reported plans for office space renting, bringing about vigorous
development of office space assimilation. For example, the assembling area represented 24% of
office space renting, trailed by 3PL, internet business, and retail.

The housing market in India is profoundly divided in nature, with many players working on the
lookout. Higher competition among market players is affecting selling costs and land costs,
further prompting oversupply on the lookout. Besides, the market is overwhelmed by a couple of
skillet India marked players and different neighbourhood players. A part of the significant
designers in the nation is Prestige Estates Projects, DLF, Prestige Group, Lodha Group, Oberoi
Realty, and so forth.

These trends have profited from the Indian economy's recent strong expansion, which has
boosted the demand for land and real estate development across the real estate sector. In India,
demand for hotel rooms and better infrastructure are expanding along with demand for
residential, commercial, and retail real estate.

In addition, a new source of real estate demand is expected because of the tax and other
incentives that apply to Seas.

RESIDENTIAL REAL ESTATE DEVELOPMENT

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The boom in the residential real property marketplace in India has been in large part pushed
through rising disposable earnings, a hastily growing center magnificence, low-interest quotes,
economic incentives on both hobby and important payments for housing loans, heightened
customer expectations, as well as elevated urbanization and growing quantity of nuclear families.

according to the National Council of applied economic research (NCEAR), income lessons with
annual incomes between Rs. 2 million and Rs. five million consistent with 12 months, rs. 5
million and Rs. 10 million in line with yr., and an extra of Rs. 10 million per 12 months are
predicted to increase in length through 23 according to cent, 25 according to cent and 28
according to cent, respectively, from fiscal 2005 to financial 2010. These higher earnings
families are predicted to be the target clients for the luxury and splendid luxury residential traits.
The residential area is expected to be preserved to show robust growth over the next five years,
helped by the growing penetration of housing finance and favorable tax incentives.

Role of SEZ’s
SEZs are explicitly defined duty-free areas that are considered foreign territories for the purposes
of Indian customs controls, levies, and tariffs. There are three primary types of SEZs: sector-
specific SEZs, which concentrate on a single industry segment, services SEZs, which can be
used across a range of defined services, and integrated SEZs, which may include a few different
businesses. For SEZs that several developers have looked to show, regulatory clearances have
been received. Due to their size, SEZs are predicted to stand as a sizable new source of real
estate demand.
Development of Commercial Real Estate
The recent expansion of the commercial real estate market in India has been fueled by rising
service sector revenues, particularly in the IT and ITES industries. Industry insiders expect that
as the IT and ITES industries expand and create more jobs, there will be a rise in the demand for
commercial space.
The need for commercial space is expected to rise in the IT and ITES industries because of
multinational corporations' Indian offshoring activities. To accommodate their expanding
workforce, these businesses have started setting up top-notch business centers. India keeps a
commanding lead in the AT Kearney Offshore Location Attractiveness Index.

Real Estate Retail Development

Over the next five fiscal years, it is expected that India's organized retail market will expand at a
rate of 25% to 30%. The expansion of organized retail is predicted to be fueled by demographic

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reasons, rising disposable incomes, shifting consumer preferences, the entry of foreign retailers
into the market, and an increase in the number of shopping centers.
The RPG Group, Pantaloon, Shopper's Stop, and Tata-Trent are currently some of the largest
organized retailers in India. Retailers have announced significant expansion plans in smaller
cities and villages, despite organized retail's current confinement to the nation's main metropolis.
The reported foray into the sector will also have an impact on the expansion of organized retail
in India.
The Central Business Districts have the most significant office areas (CBD). Demand has just
recently shifted from downtown districts out to the recent places known as Secondary Business
Districts as space has become scarcer in the CBDs and new higher quality offices with lower
pricing have been created in periphery locations (SBD). Added development areas featuring a
mix of offices, shops, and homes have recently been constructed. The availability of employees,
accessibility by automobile and public transportation, and the possibility for regional expansion
are the most crucial locational considerations in this location, just like in other locations
throughout the world. To secure access to the technological infrastructure (such as power,
telephones, and water supplies) in Indian towns

Competitive Analysis
Aparna constructions and estates pvt ltd v/s M/s Vaishnavi estates

Aparna constructions and estates Pvt Ltd

Aparna Constructions and Estates Private Limited was established on October 1st, 1996. It is
based in Hyderabad, Telangana, and is categorized as a private limited business. Its total paid-up
capital is INR 50.00 cr, and its authorized share capital is INR 100.10 cr.
The operating revenue range for Aparna Constructions and Estates for the fiscal year ending on
March 31, 2021, is over INR 500 cr. Over the previous year, it experienced a -22.10 percent
decline in EBITDA. Its book net value has also improved by 28.19% over this time.

Here is a summary of financial information of APARNA CONSTRUCTIONS AND ESTATES

PRIVATE LIMITED for the fiscal year ending on 31 March 2021.
 Revenue / turnover of APARNA CONSTRUCTIONS AND ESTATES PRIVATE
LIMITED is Over INR 500 cr
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 The net worth of the company has increased by 28.19 %

 EBITDA of the company has decreased by -22.10 %
 Total assets of the company have increased by 33.98 %
 Liabilities of the company have increased by 6.19 %
Vaishnavi Estates Pvt Ltd
Vaishnavi Estates Private Limited is an unlisted private company incorporated on 05 March
1997. It is classified as a private limited company and is in Hyderabad-500 038., Telangana. Its
authorized share capital is INR 3.00 cr and the total paid-up capital is INR 1.15 cr.
The last reported AGM (Annual General Meeting) of Vaishnavi Estates Private Limited, per our
records, was held on 25 November 2021. Also, as per our records, its last balance sheet was
prepared for the period ending on 31 March 2021.
Vaishnavi Estates Private Limited has two directors - Srinivas Telaprolu and Seshagiri Rao
Telaprolu.
Here is a summary of financial information of VAISHNAVI INFRASTRUCTURE PRIVATE
LIMITED for the fiscal year ending on 31 March 2021.
 Revenue / turnover of VAISHNAVI INFRASTRUCTURE PRIVATE LIMITED is INR
100 cr - 500 cr
 The net worth of the company has increased by 17.55 %
 EBITDA of the company has increased by 62.76 %
 Total assets of the company have increased by 4.35 %
 Liabilities of the company have decreased by -3.69 %

Completed Projects
Aparna constructions has completed 22 projects as of 2022, in the prime areas of Hyderabad.
Vaishnavi estates has completed living projects as of 2022 and 4 commercial projects in the
cities of Vijayawada, Guntur and Hyderabad.

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CHAPTER 4

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Data Analysis and Interpretation

Profit and Loss account has been analyzed in the following:

1. GROSS SALES
ESTIMATE
D
1.Gross sales MARCH 21 PROJECTED MARCH 21
i. Domestic Sales 303 1114.54
ii.Export sales
Total (i.+ii.) 303 1114.54
2.Less Excise Duty
3.Net Sales (1-2) 303 1114.54
4.% rise(+) or
fall(-) in net sales
as #DIV/0! 267.83
compared to
previous year
Other Operating
income 0 0
Export incentives
Duty Drawback
Others(Job work
Income)
Total Operating
income 303 1114.54
Instrcution for use: Fill up only Blue fields in rupees in lakhs, Yellow fields are not to be
disturbed,

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In this the gross sales of the company are discussed. The blue line stands for the estimated values
of the figures for the following headings in the gross sales by the accounts department, while the
green line stands for the projected figures of the following headings. A bar graph has been shown
to explain the data graphically.

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2. Cost of Sales
Cost of sales Est. Projected march 21 Projected march 21
March 21

d.Add:
Purchase(Indigen 370
ous) 325 120
e.Less: Closiing
Balance(Imported
)
f.Less:Closing
Balance(Indigeno
us)
g.Consumption(I
mported) (a+c-e) 0 0 0
h.Consumption(I
ndigenous) (b+d-
f) 370 325 120
i. Sub Total (g+h) 370 325 120
ii.Other spares
a. Imported
b.Indigenous
iii.Power and fuel
iv.Direct
Labour(factory
wages & salaries) 80 140 40
v.Other
manufacturing
expenes
vi.Depreciation 0
vii.Sub Toal (i to
vi) 450 465 160
Instrcution for use: Fill up only Blue fields in rupees in lakhs, Yellow fields are not to be
disturbed,

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In this the cost of sales of the company is discussed. The blue line stands for the estimated values
of the figures for the following headings in the gross sales by the accounts department, while the
green line stands for the projected figures of the following headings. A bar graph has been shown
to explain the data graphically. The yellow line is the figures in cr

43
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3. Operating profit before interest

7.Operating
Profit before
Interest (3-xiii-
6) 1.3 30.39 133.85 121
8.Interest
Payments to
Banks
Interest-WC
Interest- Term
Loans 1.3 30.39 49.23 16
Interest
Payments to Fis
Interest-WC
Interest- Term
Loans
Interest Payments
to others
Bank Charges
Total interest 1.3 30.39 49.23 16

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In this the operating profit before interest is discussed. The blue line stands for the estimated
values of the figures for the following headings in the gross sales by the accounts department,
while the green line stands for the projected figures of the following headings. A bar graph has
been shown to explain the data graphically. The yellow line is the figures in cr

45
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4. Current Liabilities
Total
Current
Liabilities 0.00 0.00 50.00 270.00 400.00 0.00
current
liabilities
other than
BB 0.00 0.00 50.00 270.00 400.00 0.00
Term
Liabilities
Debentures
maturing
afer 1 year)
Preference
share
capital
maturity<1
2 years
Dealer's
Deposit
Deferred
Tax
Liability
Term
Loans-
from
Banks 0.00 80.00 350.00 266.60 0.00
Term
Loans-
from Fis
Term
Deposits
Borrowing
s from
subsidaries
/affiliates
(quasi
equity only
if
subordinate
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d to our
Banks
loan)
Unsecured
Loans 100.00 140.00 140.00 0.00
Other
Term
Liabilities 0.00 0.00
Total
Term
Liabilities 0.00 0.00 180.00 490.00 406.60 0.00

Total
Outside
Liabilities 0.00 0.00 230.00 760.00 806.60 0.00
TOL with
out
Deferred
tax 0.00 0.00 230.00 760.00 806.60 0.00

In this the current liabilities is discussed. The blue line stands for the estimated values of the
figures for the following headings in the gross sales by the accounts department, while the green
line stands for the projected figures of the following headings. A bar graph has been shown to
explain the data graphically. The yellow line is the figures in cr

47
48

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5. Cost of Production

x.Cost of
Production -0.21 -0.55 1.64 9.88
xi.Add:
Opening stock
of finished
goods 0 0 0 0
xii.Less:
Closing stock
of finished
goods 0 0 0 0
xiii. Cost of
Sales -0.21 -0.55 1.64 9.88
6.Selling,
general &
administrative
expenses 0.2 0.25 0.05 0.06
Employees
Cost 0 0 0 0
Cost of sales
+SGA -0.01 -0.3 1.69 9.94
7.Operating
Profit before
Interest (3-
xiii-6) 0.01 0.3 1.34 1.21

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In this the cost of production is discussed. The blue line stands for the estimated values of the
figures for the following headings in the gross sales by the accounts department, while the green
line stands for the projected figures of the following headings. A bar graph has been shown to
explain the data graphically. The yellow line is the figures in cr

50
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SWOT Analysis of Vaishnavi Real Estate

Any proposed endeavor or investment is thought to benefit greatly from a SWOT analysis, which
is also crucial for the ongoing success of the planned business or investment. Planning any real
estate business requires conducting a real estate SWOT analysis, which is particularly important
if not essential. This is so that other corporate operations can be restructured to better suit the
current state of the market. Real estate analysis' main aim is to help potential investors and other
important participants spot potential conflict zones, weak spots, and possibilities while also
highlighting potential risks.

An evaluation of a company venture's strengths, weaknesses, opportunities, and threats is done

using a SWOT analysis (also known as a SWOT matrix).
It entails defining the project's or venture's goal and finding the internal and external factors that
are helpful and detrimental to achieving that goal. Below is a SWOT analysis of Vaishnavi
Estates Pvt Ltd
Strengths

 Superior goods and services

 Reputation and goodwill of the company
 Growing market
 Rising sales and profitability
 Thriving industry sector with reliable companies.
 Good purchasing power of the target customers group
 Experienced management
 The government is extremely interested in finding a solution to the housing issue given
the significant urban population growth.
 Recent housing legislation, the open market economy, and other factors may encourage
the housing industry to grow sustainably.

Weaknesses

 Small number of projects

 Insufficient marketing (advertising and promotion)
 Lack of full-scale automation

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 Lack of employee training facilities

 Fierce competition among the existing players in the industry
 Inability to pass on higher industrial material costs to customers because the agreement
on price and construction standard is made two to three years before the actual handing
over of the apartments
 Because of the delay in project handover, there was higher waste, there was increased
personnel turnover, and there were more overhead costs.
Opportunities

 A regulatory environment that Favours the development of the private sector

 Value addition in goods and services
 An increase in the purchasing power of the population
 An increase in the trend of international trade; an increase in India’s population
 A highly profitable investment opportunity for both individuals and financial institutions
 A very wide scope is currently prevailing for foreign investors
 Urban populations are shifting their attitudes toward apartment living, among other
things.
Threats

 Frequent changes to Indian government or habitation regulations

 Market pressure for lower interest rates
 Lack of land in India threats from political instability and unrest to all business sectors,
including the housing industry
 Threat of substitutes
 Threat of new entrants

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PEST (Political, Economic, Social and Technology) and macroenvironment analysis

Each firm functions in a bigger macro environment that is shaped by forces that present
possibilities and risks to the business
The four main forces—political, economic, social, and technological—that have an impact on
real estate development and the sector are explored here.

Political forces
Various institutions and people in each society are influenced and constrained by political
influences, which include laws, governmental bodies, and pressure groups. The government has
produced a multitude of laws and regulations for a variety of purposes, including primarily
protecting businesses from one another, customers from unethical business activities, and
societal interests.
The real estate sector is greatly influenced by political factors. This nation's political climate is
unstable. It is significantly more difficult to complete projects on time due to the unpredictable
political climate. Due to the projects' lengthy construction, overhead costs can exceed estimated
costs by twofold. It raises the projects' overall production costs.
On the other hand, whenever a new government takes office, interest rates on loans, deposits,
and other things fluctuate. The situation with taxes is affected. There are new policies in place
for export, import, and other activities that could have a detrimental impact on the sector.

Economic Factors
In nations with subsistence economies, where people mostly rely on their own resources,
economic forces have a significant impact on consumers' buying power and spending habits,
industry and agricultural output. Industrial economies, typically constitute vast markets for a
wide range of goods, are at the other extreme.
The real estate market is closely tied to economic issues, particularly consumer spending and
budgeting skills. because it costs more money to buy a house or an apartment. People can
consider buying a house or piece of land when they have a greater income and higher level of
savings.
Due to economic forces, there has been a major shift in the real estate industry. Due to people's
lack of resources to invest in a new home during the share market and business collapse, real
estate sales have plunged by approximately 50%.

Social Dynamics
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These are the factors that influence society's fundamental beliefs, feelings, preferences, and
actions. People develop in a certain society, which affects their fundamental assumptions and
inclinations. These factors have an impact on an industry's viability and performance.
The potential of the real estate industry has also increased due to changes in living standards and
habits. People are becoming more interested in nuclear families today. Families have changed
from being joint to being nuclear during the past three decades. In the Hyderabad Municipal
Corporation region, families were 4.2 people in size on average in 2005. (STP, 2005). Such
families find it convenient to live in two- or three-bedroom apartments. Most middle-class and
higher middle-class people cannot afford Hyderabad high land prices.

Technological Factors
Innovation resulting from research and development, improvements in automation, and the pace
of technical advancement are all technological aspects. Due to enhanced quality features or new
products, innovative technologies might bring about cost reductions or more innovation. One can
see that most materials, such cement and bricks, cannot be successfully discriminated by looking
at the real estate industry. Most construction materials still have high production costs,
particularly cement, which is a result of the significant energy needed to make the large-volume
product. To replace traditional raw materials, the industry made significant efforts to test and use
innovative material combinations. Due to the real estate sector's intense cost competition,
manufacturers are working to create multifunction.

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The Indian Real Estate Market Using Porter's Model

This section uses the Porter model to analyze the Indian real estate market.
Suppliers' negotiating power (Real Estate Firms)
The considerable number of real estate companies in the Indian real estate market is evidence of
how appealing the business is to investors. However, the actual scenario, which is described
below, is slightly different.

Number of producers: As was already said, India has many real estate companies that generate
the country's real estate goods. However, some of the market's largest corporations like Lodha,
Jaybheri, My home and Malaysian Township reap significant rewards. In times of market crises,
these businesses could endure. These businesses also receive help from economies of scale and
scope. Numerous real estate transactions might be considered an investor's portfolio diversifier.
Since only a handful of major corporations' control 95% of the industry, there is a fair amount of
market concentration.

Differentiation in Input Mix: Land is a major Contribution in the real estate business. As a
corollary, land values and prices have a significant impact on the real estate market in India.
They have a significant impact on how much real estate products are sold for.
For illustration, property prices vary depending on the areas they are in. In Hyderabad, a home
with a better view or in a prime area like Gachibowli is far more expensive than homes in other
parts of the city.

Importance of volumes to producers: Volumes are important to producers because not all real
estate companies are able to use them broadly to cover all real estate business segments.
However, experts contended that a firm should target at least two "economic levels" of the
society depending on the state of business in Hyderabad. If one primarily focuses on a particular
level, such as a high-income level, they may be largely restricted to the Jubilee Hills region.
Because of one's small consumer base, one will experience issues during a difficult business
period. However, if one simultaneously targets high- and medium-income individuals, they run
the risk of making a terrible business decision.

Purchase volume: Well, it claims that when one makes a sizable purchase of goods, one can
engage in serious haggling with the manufacturers. This is less effective in the case of real estate
because there aren't many large purchases. Above all, practically all businesses have various
promotions that lower the overall price if a customer purchase multiple uni.
55
56

Buyer price sensitivity: A buyer with a high price sensitivity would haggle more with the
providers. However, the location and, once more, who is the party in need will figure out how
much of a success the buyer will have.
The likelihood of the buyer succeeding is limited if it is in an urban region, but it may be
possible in suburban areas. The fundamental reason is that sometimes the lack of land in
metropolitan areas balances out price sensitivity.

Economies of scale: These opportunities are granted to some significant market players.
However, this does not imply that they did it to undercut the competition or increase customer
happiness. By cutting costs, they choose to enjoy a large profit margin. The author was unable to
discover any company using economies of scale that was trying to lower prices to increase
competition, at least not in Bangladesh's urban areas. Therefore, rather than fostering
competition, benefits from economies of scale are being used to enhance profit margin, which
could pose a threat to new entrants.

Benefits of a learning curve: Because of the scarcity of data, it is incredibly challenging to

show that companies in Bangladesh's real estate market are receiving help from a learning curve.
However, it is true that businesses do not invest much in R&D. Instead of investing heavily in
Research and development, they buy a large amount of land.

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CHAPTER 5

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Findings
 The market is extremely sensitive to changes in economic conditions, including those
caused by the government's fiscal policy
 There are many competitors
 Vaishnavi Estates Pvt Ltd has a limited number of active projects
 Most of Vaishnavi Estates Pvt Limited's projects are in specific areas
 Vaishnavi Estates needs to concentrate on using their resources effectively
 Political unrest is a significant problem in the marketplace.

Recommendations
 Vaishnavi Estates should understand the needs of the client
 Vaishnavi estates can supply training for their employees to improve their lack of
commitment and functional skills.
 The government should be flexible in supplying utility facilities in residential buildings.
 Vaishnavi Estates should undertake strategic plans and action to increase its market
position in the real estate industry.

Conclusion
The real estate industry is expanding and has the potential to do so in the future. Construction
and real estate are contributing more to the GDP. This suggests that this industry has a bright
future. There is a lot of room for this industry to expand due to factors like rising home rent,
rising housing demand, easy access to financing, expanding urbanization, insufficient land, and
many more. As a result, the overall demand for homes and apartments has increased and is likely
to continue to do so. Despite being insufficient, the quantity of flats and the number of real estate
developers have both shown signs of increasing in recent years. Real estate financing is now
simpler and more readily available than ever before. Private sector housing financing is offered
with flexible terms and attractive interest rates, although the total quantity of loans issued is still
quite small when compared to loans in other industries. The improvement and expansion of debt
markets as well as the strengthening of the financial sector's regulatory and oversight framework
are of special relevance to the home finance industry. Apartment prices have gone up, ranging
according to size and location. More facilities come at an added fee. Overall, this analysis reveals
a highly hopeful and upbeat tone of expansion, provided that this industry receives the required
attention and resources. It is unquestionably imperative to meet the rising housing demand.
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Nevertheless, this study writes down an optimistic and upbeat tone of progress, provided that this
industry receives the required attention and resources. Certainly, it has become crucial to meet
the nation's growing housing demand and close the supply imbalance.

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