CHAPTER 7. Cash Flow AnAlysis. of Sample Real. EstatE CompaniEs

Transcription

1 CHAPTER 7 Cash Flow AnAlysis of Sample Real EstatE CompaniEs 226

2 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 cashflows 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

3 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

4 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

5 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

6 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 231

7 Adjustments for - Depreciation - Foreign Exchange - Investments - Gain or Loss on Sale of Fixed Assets - Interest Dividend Operating Profit before Working Capital Changes Adjustments for - Trade and Other Receivables - Inventories - Trade Payable Cash generated from Operations - Interest Paid () - Direct Taxes () Cash before Extra-Ordinary Items Deferred Revenue Net Cash Flow from Operating Activities (Indirect Method) 232

8 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 Net Profit before Tax and Extra-ordinary items Amount Adjustments for - Depreciation - Foreign Exchange - Investments - Gain or Loss on Sale of Fixed Assets - Interest Dividend Operating Profit before Working Capital Changes Adjustments for - Trade and Other Receivables - Inventories - Trade Payable Cash generated from Operations - Interest Paid () - Direct Taxes () 233

9 Cash before Extra-Ordinary Items Deferred Revenue Net Cash Flow from Operating Activities (Indirect Method) 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

10 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 Purchase of Fixed Assets (Add) Proceeds from Sale of Fixed Assets (Add) Interest received (Add) Dividend received Net Cash Flow from Investing Activities Amount () 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

11 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 Proceeds from Issue of Share Capital Proceeds from Long Term Borrowings Repayment of Long Term Borrowings Interest Paid Dividend Paid Net Cash Flows from Financing Activities Amount () () () 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 befor e Tax OR Closing balance of Profit & Loss Account Less: Opening balance of Profit & Loss Account * 236

12 Add: Less: 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 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 Profit on Sale of Fixed Assets Rental Income + C A C A C L * Operating Profit before charging Working Capital. * Add: Decrease in Current Assets * 237

13 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

14 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 * 239

15 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

16 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

17 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

18 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 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 in 2008, in 2010 and in The net cash from operating activities of DLF is in 2008, in 2010 and in The net cash from operating activities of HDIL is in 2008, in 2010 and in The net cash from operating activities of India bulls Real is in 2008, in 2010 and in The net cash from operating activities of Suntek Realty is in 2008, in 2010 and in

19 Diagram 7.1 Net Cash from Operating Activities Company Name / year ANANT RAJ DLF HDIL Indiabulls Real Suntek Realty Series1 Series2 Series3 Series4 Series Table 7.2 Change in Net Cash from operating Activities Company Name / year ANANT RAJ DLF HDIL Indiabulls Real Suntek Realty % % 71.50% 99.30% % % % 18.81% % % % % % % % % % % % % The Anant Raj Company has shown the maximum growth in Cash from Operating Activities in which is 1811% and minimum between the years 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 and -88% between The DLF Company has shown the maximum growth in Cash from Operating Activities Loan Capital which is 283% and minimum 244

20 between the years that is -191%.The DLF Company has shown a growth rate of -191% from 2008 to 2009, -71% from 2009 to 2010, 283% between and -72% between The HDIL Company has shown the maximum growth in Cash from Operating Activities in which is 123% and minimum between the years that is -166%.The HDIL Company has shown a growth rate of -71% from 2008 to 2009, -19% from 2009 to 2010, 123% between and -166% between The India Bulls Real Company has shown the maximum growth in Cash from Operating Activities in which is 2282% and minimum between the years 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 and 437% between The Sun Tek Realty Company has shown the maximum growth in Cash from Operating Activities in which is -113% and minimum between the years 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 and -113% between Diagram 7.2 Change in Net Cash from operating Activities Company Name / year Series1 Series2 Series3 Series4-15 Series

21 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 It is found that DLF is showing the maximum Geometric Mean for selected study period i.e followed by Sun Tek Realty 54.30, HDIL 32.72,Anant Raj and India Bulls Real 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 ANANT RAJ DLF HDIL Indiabulls Real Suntek Realty Geometrical Mean

22 Table 7.4 Net Cash from Investing Activities Company Name / year ANANT RAJ DLF HDIL Indiabulls Real Suntek Realty 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 in 2008, in 2010 and in The net cash from investing activities of DLF is in 2008, in 2010 and in The net cash from investing activities of HDIL is in 2008, in 2010 and in The net cash from investing activities of Indiabulls Real is in 2008, in 2010 and in The net cash from investing activities of Suntek Realty is in 2008, in 2010 and in

23 Diagram 7.4 Net Cash from Investing Activities Company Name / year ANANT RAJ DLF HDIL Indiabulls Real Suntek Realty Table 7.5 Change in Net Cash from Investing Activities Company Name / ANANT Indiabulls Suntek year RAJ DLF HDIL Real Realty % 82% -12% 48% 71% % -110% -416% 81% -386% % 19% 17% -1069% 66% % 159% -43% 108% -104% The Anant Raj Company has shown the maximum growth in Cash from Investing Activities in which is 44% and minimum between the years 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 and -26% between The DLF Company has shown the maximum growth in Cash from Investing Activities which is 110% and minimum between the years that is -159%.The DLF Company has shown a growth rate of -82% from 2008 to 2009, 110% from 2009 to 2010, -19% between and -159% between

24 The HDIL Company has shown the maximum growth in Cash from Investing Activities in which is 416% and minimum between the years that is -17%.The HDIL Company has shown a growth rate of 12% from 2008 to 2009, 416% from 2009 to 2010, -17% between and 43% between The India Bulls Real Company has shown the maximum growth in Cash from Investing Activities in which is 1069% and minimum between the years 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 and -108% between The Sun Tek Realty Company has shown the maximum growth in Cash from Investing Activities in which is 386% and minimum between the years 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 and 104% between Diagram 7.5 Change in Net Cash from Investing Activities Company Name / year Series1 Series2 Series3 Series4 Series

25 Table 7.6 Geometrical Mean Change in Net Cash from Investing Activities Company Name / year Geometrical Mean ANANT Indiabulls Suntek RAJ DLF HDIL Real Realty It is found that India Bulls Real is showing the maximum Geometric Mean for selected study period i.e followed by HDIL ,Sun Tek Realty 73.43, Anant Raj and DLF 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 ANANT RAJ DLF HDIL Indiabulls Real Suntek Realty Geometrical Mean

26 Table 7.7 Net Cash from Financing Activities Company Name / year ANANT RAJ DLF HDIL Indiabulls Real Suntek Realty 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 in 2008, in 2010 and in The net cash from financing activities of DLF is in 2008, in 2010 and in The net cash from financing activities of HDIL is in 2008, in 2010 and in The net cash from financing activities of Indiabulls Real is in 2008, in 2010 and in The net cash from financing activities of Suntek Realty is in 2008, in 2010 and in

27 Diagram 7.7 Net Cash from Financing Activities Series Series2 Series Series Company Name / year Series5 Table 7.8 Change in Net Cash from Financing Activities Company Name / year ANANT RAJ DLF HDIL Indiabulls Real Suntek Realty % 105% -79% -55% -124% % 428% 110% 33% 448% % -71% -11% 36% -126% % -423% -161% -120% 322% The Anant Raj Company has shown the maximum growth in Cash from Financing Activities in which is 3587% and minimum between the years 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 and -75% between The DLF Company has shown the maximum growth in Cash from Financing Activities which is -71% and minimum between the years that is -428%.The DLF Company has shown a growth rate of -105% from 2008 to 252

28 2009, -428% from 2009 to 2010, -71% between and -423% between The HDIL Company has shown the maximum growth in Cash from Financing Activities in which is 110% and minimum between the years that is -161%.The HDIL Company has shown a growth rate of -79% from 2008 to 2009, 110% from 2009 to 2010, -11% between and -161% between The India Bulls Real Company has shown the maximum growth in Cash from Financing Activities in which is 36% and minimum between the years 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 and - 120% between The Sun Tek Realty Company has shown the maximum growth in Cash from Financing Activities in which is -124% and minimum between the years 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 and -323% between Diagram 7.8 Change in Net Cash from Financing Activities Company Name / year Series1 Series2 Series3 Series4 Series5 253

29 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 Diagram 7.9 Geometrical Mean of Change in Net Cash from Financing Activities Geometrical Mean Geometrical Mean ANANT RAJ DLF HDIL Indiabulls Real Suntek Realty 254

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