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A STUDY ON TH E―RATIO ANALYSIS OF‖

SUBMI TTED I NPARTIAL F ULFI LL M ENT OF THE

REQUI REM ENT F OR TH E AWARD OF TH EDEGREE OF

BACH EL OR OF BUSI NESS ADM I NI STRATI ON[BBA (H ONS.)]

UNDER‗WEST BENGAL UNIVERSITY OF TECHNOLOGY‘

SUBM I TTED BYSABYASACH I GHOSH

ROL L NO: - 18105011005 REGI STRATI ON NO: - 111812010005 OF 2011-2012

OF‗PAILAN SCH OOL of I NTERNATIONAL STUDI ES ‘

UNDER TH E GUIDANCE OFPROF.GAUTAM DAW

{SR. F ACUL TY OF}


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ACKNOWLEDGEMENT

Behind every endeavor lays the effort of many individuals who lend their incredibleand support in order to achieve success. In my study paper entitled “RATIOANALYSIS ON FIVE YEAR PLAN OF AXIS BANK ” . I have made an effort totry and analyze the data collected from the different sources for completion of thisstudy paper. I would take the opportunity to thank PROF. GAUTAM DAW underwhose supportive guidance I have been able to complete the study paper and toovercome the various conceptual problems faced. I would like to extend my thanksand gratitude to all my teachers, friends, corporate executives and also m well-wishers for guiding me throughout the work in some way or otherwise.

DATE : - ……………

PLACE : - …………..

………………………….

(SABYASACH I GH OSH )


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CONTENTS CHAPTER 1 PAGE N O.05-06

BRIEF HI STORY OF BANKI NG HI STORY WHAT I S BANK? OROGI N OF TH E WORD DEFI NITI ON OF BANKING

CHAPTER 2 PAGE N O.07-19 BRIEF HI STORY OF A XI S BANK

ABOUT AXIS BANK COM PANY PROFI LE HI STORY OF AXI S BANK PROMOTERS VISI ON & VALUES AWARDS AXI S BANK SERVI CES OBJECTI VE OF THE STUDY SCOPE OF TH E STUDY

CHAPTER 3 PAGENO.20-28 DATABASE & M ETH ODOLOGY BRIEF HI STORY OF RATI O ANALYSI S

WHAT I S RATIO? WH AT I S ACCOUNTI NG RATI O? RATI O ANALYSIS EXPRESSI ON OF ACCOUNTI NG RATI OS M EANI NG OF ANA LYSIS TH ROUGH ACCOUNTI NG RATI OS

STEPS I N RATI O ANAL YSI S IMPORTANCE OR UTLITY OR ADVANTAGES OF RATIOANALYSIS

LI M I TATI ONS OF RATI O ANALYSI S PROFI TABIL I TY RATI O TURNOVER RATI O FI NANCI AL RATIO STABI LI TY RATIO PERFORM ANCE RATI O

CHAPTER 4 PAGE NO.29-33

CALCULATI ON & I NTERPRETATION OF RATI OS CALCULATI ON OF RATI OS TABLES GRAPHS COMMENTS

CHAPTER 5 PAGE NO.34-42 SUGGESTI ONS

CONCLUSION & SUMM ARY RECOMMENDENTATION BIBLIOGRAPHY ANNEXURE


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CHAPTER - 1

BRI EF H I STORY OF BANKI NG H I STORY


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What i s bank? A bank is a financial institution and a financial intermediary thataccepts deposits and channels those deposits into lending activities, either directly orthrough capital markets. A bank connects customers that have capital deficits tocustomers with capital surpluses. Due to their critical status within the financialsystem and the economy generally, banks are highly regulated in most countries.Most banks operate under a system known as fractional reserve banking where theyhold only a small reserve of the funds deposited and lend out the rest for profit. Theyare generally subject to minimum capital requirements which are based on aninternational set of capital standards, known as the Basel Accords. The oldest bankstill in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, whichhas been operating continuously since 1472.

Origin of the word: - The word „bank‟ is derived from the Greek word „banque‟or the Italian word „banco‟ both meaning a bench -referring to a bench at which

money-lenders and money changers used to display their coins and transact businessin the market place. The word bank was borrowed in Middle English from MiddleFrench banque , from Old Italian banca , from Old High German banc, bank "bench,counter". Benches were used as desks or exchange counters duringthe Renaissance by Florentine bankers, who used to make their transactions atopdesks covered by green tablecloths. Another possible origin of the word is from theSanskrit words ( ) Baya (Expense) and Onka (Calculation) = BayaOnka. This

word still survives in Bangla, which is one of the Sanskrit's child languages. + = . Such expense calculations were the biggest part of mathmetical treaties

written by Indian mathematicians as early as 500 B.C.

Defi ni tion of banking: - A bank is like a reservoir in to which flow of savings,the idle surplus money of households and from which loans are given on interest to

businessman and others who needs them for investment or productive uses. A bank isan important institution of money market as it gives short-term loans to itscustomers. A banking company in India has been defined in the Banking CompaniesAct, 1949 as one “which transacts the business of banking which means the accepting, for the purpose of lending or investment of deposits of money from the

public, repayable on demand or otherwise and with draw able by cheque, order orotherwise”.


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ABOUT AXI S BANK

Axis Bank was the first of the new private banks to have begun operations in 1994,

after the Government of India allowed new private banks to be established. The Bankwas promoted jointly by the Administrator of the specified undertaking of the UnitTrust of India (UTI - I), Life Insurance Corporation of India (LIC) and GeneralInsurance Corporation of India (GIC) and other four PSU insurance companies, i.e.

National Insurance Company Ltd., The New India Assurance Company Ltd., TheOriental Insurance Company Ltd. and United India Insurance Company Ltd. TheBank as on 31st March, 2012 is capitalized to the extent of Rs. 413.20 crores with the

public holding (other than promoters and GDRs) at 54.08%. The Bank's RegisteredOffice is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a

very wide network of more than 1281 branches (including 169 ServiceBranches/CPCs as on 31st March, 2011). The Bank has a network of over 7591ATMs (as on 30th September, 2011) providing 24 hrs a day banking convenience toits customers. This is one of the largest ATM networks in the country. The Bank hasstrengths in both retail and corporate banking and is committed to adopting the bestindustry practices internationally in order to achieve excellence.

COM PANY PROF I L E

AXIS Bank is one of the fastest growing banks in private sector. The Bank operatesin four segments, namely treasury, retail banking, corporate/ wholesale banking andother banking business. The treasury operations include investments in sovereignand corporate debt, equity and mutual funds, trading operations, derivative tradingand foreign exchange operations on the account, and for customers and centralfunding. Retail banking includes lending to individuals/ small businesses subject tothe orientation, product and granularity criterion. It also includes liability products,card services, Internet banking, automated teller machines (ATM) services,depository, financial advisory services, and non-resident Indian (NRI) services. The

corporate/ wholesale banking segment includes corporate relationships not includedunder retail banking, corporate advisory services, placements and syndication,management of publics issue, project appraisals, capital market related services, andcash management services. The Bank's registered office is located at Ahmedabadand their Central Office is located at Mumbai. The Bank has a very wide network ofmore than 1042 branches (including 56 Service Branches/ CPCs as on June 30,2010). The Bank has a network of over 4,474 ATMs providing 24 hrs. a day

banking convenience to their customers. This is one of the largest ATM networks inthe country. The Bank has five wholly-owned subsidiaries namely Axis Securities

and Sales Ltd, Axis Private Equity Ltd, Axis Trustee Services Ltd, Axis AssetManagement Company Ltd and Axis Mutual Fund Trustee Ltd. Axis Bank was


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incorporated in the year 1993 with the name UTI Bank Ltd. The Bank was the first private banks to have begun operations after the Government of India allowed new private banks to be established. They won the award 'Outstanding AchievementAward' for the year 2005 from Indian Banks Association for IT Infrastructure,

delivery capabilities and innovative solutions. In December 2005, the Bank set upAxis Securities and Sales Ltd (originally incorporated as UBL Sales Ltd) to marketcredit cards and retail asset products. In October 2006, they set up Axis PrivateEquity Ltd, primarily to carry on the activities of managing equity investments and

provide venture capital support to businesses. In the year of 2007, the bank againraised $218.67 million through Global Depository Receipts. They opened 153 new

branches during the year, which includes 43 extension counters that have beenupgraded to branches and 8 Service branches/ CPCs. During the year 2008-09, theBank opened 176 new branches that include 12 extension counters that have beenupgraded to branches taking the total number of branches and ECs to 835. Duringthe year, they opened 831 ATMs, thereby taking the ATM network of the Bankfrom 2,764 to 3,595. Also, they opened a Representative Office in Dubai. In May2008, the Bank established Axis Trustee Services Company Ltd as a wholly ownedsubsidiary company, which is engaged in trusteeship activities. During the year2009-10, the Bank opened 200 branches taking the total number of branchesExtension Counters (ECs) to 1,035. In February 24, 2010, the Bank launched the'AXIS CALL & PAY on atom', a unique mobile payments solution using Axis Bankdebit cards. Axis Bank is the first bank in the country to provide a secure debit card-

based payment service over IVR. During the year 2010-11, 407 new branches were

added to the Bank's network taking the total number of branches and extensioncounters (ECs) to 1,390. Of these, 564 branches/ ECs are in semi-urban and ruralareas and 826 branches/ECs are in metropolitan and urban areas.

H istory of Axi s Bank

1993

On14th December, the Bank transacts banking business of all description. UTI BankLtd. was promoted by Unit Trust of India, Life Insurance Corporation of India,General Insurance Corporation of India and its four subsidiaries. The bank was thefirst private sect - The Bank was incorporated on 3rd December and Certificate of

business or bank to get a license under the new guidelines issued by the RBI.

1997

The Bank obtained license to act as Depository Participant with NSDL and appliedfor registration with SEBI to act as `Trustee to Debenture Holders'. Rupees 100

crores was contributed by UTI, the rest from LIC Rs 7.5 crores, GIC and its four


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subsidiaries Rs 1.5 crores each.

1998

The Bank has 28 branches in urban and semi urban areas as on 31 st July. All the branches are fully computerized and networked through VSAT. ATM services areavailable in 27 branches. The Bank came out with a public issue of 1,50,00,000 No.of equity shares of Rs 10 each at a premium of Rs 11 per share aggregating to Rs31.50 crores and Offer for sale of 2,00,00,000 No. of equity shares for cash at a priceof Rs 21 per share. Out of the public issue 2, 20,000 shares were reserved forallotment on preferential basis to employees of UTI Bank. Balance of 3, 47, 80,000shares were offered to the public.

1999

UTI Bank and Citibank have launched an international co-branded credit card. UTIBank and Citibank have come together to launch an international co-branded creditcard under the MasterCard umbrella. UTI Bank Ltd has inaugurated an off-site ATMat Ashok Nagar here, taking the total number of its off-site ATMs to 13.m

2000

The Bank has announced the launch of Tele-Depository Services for its depositoryclients.UTI Bank has launch of `iConnect', its Internet banking Product.UTI Bankhas signed a memorandum of understanding with equitymaster.com for e-brokingactivities of the site.ICRA has upgraded the rating og UTI Bank's Rs 500-crore

certificate of deposit programs to A1+.

2001

UTI Bank launched a private placement of non-convertible debentures to raise up toRs 75 crore.UTI Bank has opened two offsite ATMs and one extension counter withan ATM in Mangalore, taking its total number of ATMs across the country to 355.

2002

UTI Bank Ltd has informed BSE that Shri B R Barwale has resigned as a Director ofthe Bank w.e.f. January 02, 2002. A C Shah, former chairman of Bank of Baroda,also r etired from the bank‟s board in the third quarter of last year. His placecontinues to be vacant. M Damodarantook over as the director of the board aftertaking in the reins of UTI. B S Pandit has also joined the bank‟s board subsequent t othe retirement of K G Vassal.B Paranjpe & Abid Hussain ceases to be the Directorsof UTI Bank.UTI Bank Ltd has informed that in the meeting of the Board ofDirectors following decisions were taken: Mr.Yash Mahajan, Vice Chairman andManaging Director of Punjab Tractors Ltd was appointed as an Additional Directorwith immediate effect. Mr N C Singhal former Vice Chairman and ManagingDirector of SCICI was appointed as an Additional Director with immediate effect.

ABN Amro, UTI Bank in pact to share ATMs.


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2003

UTI Bank Ltd has informed BSE that at the meeting of the Board of Directors of thecompany held on January 16, 2003, Shri R N Bharadwaj, Managing Director of LIChas been appointed as an Additional Director of the Bank with immediate effect.UTIBank Ltd. has informed the Exchange that at its meeting held on June 25, 2003 theBOD have decided the following: 1) To appoint Mr. A T Pannir Selvam, formerCMD of Union Bank of India and Prof. Jayanth Varma of the Indian Institute ofManagement, Ahmedabad as additional directors of the Bank with immediate effect.Further, Mr. Pannir Selvam will be the nominee director of the Administrator of thespecified undertaking of the Unit Trust of India (UTI-I) and Mr. JayanthVarma will

be an Independent Director. 2) To issue Non-Convertible Unsecured RedeemableDebentures upto Rs.100 crs, in one or more tranches as the Bank's Tier - II capital. Shr iAjeet Prasad, Nominee of UTI has resigned as the director of the bank.Unveils

pre-paid travel card 'Visa Electron Travel Currency Card'

2004

Comes out with Rs. 500 mn Unsecured Redeemable Non-Convertible DebentureIssue, issue fully subscribed. UTI Bank Ltd has informed that Shri Ajeet Prasad,

Nominee of the Administrator of the Specified Undertaking of the Unit Trust ofIndia (UTI - I) has been appointed as an Additional Director of the Bank W.E.F.January 20, 2004. UTI Bank opens new branch in Udupi. UTI Bank ties up withShriram Group Cos. Metal junction (MJ)- the online trading and procurement jointventure of Tata Steel and Steel Authority of India (SAIL)- has roped in UTI Bank tostart off own equipment for Tata Steel. DIEBOLD Systems Private Ltd, a wholly

owned subsidiary of Diebold Incorporated, has secured a major contract for thesupply of ATMs and services to UTI Bank

2005

UTI Bank enters into a banc assurance partnership with Bajaj Allianz General forselling general insurance products through its branch network. UTI Bank launches itsfirst Satellite Retail Assets Centre (SRAC) in Karnataka at Mangalore.

2006

UTI Bank unveils priority banking lounge. UTI Bank announces the launch of itsCredit Card Business. UTI Bank becomes the first Indian Bank to successfully issueForeign Currency Hybrid Capital in the International Market. UTI Bank BusinessGold Debit Card MasterCard Launched – Designed for business related spending bySMEs and self-employed professionals

2007

AXIS Bank Ltd has informed that consequent upon handing over charge asAdministrator of the Specified Undertaking of the Unit Trust of India (SUUTI), Shri.

S B Mathur, the Nominee Director of SUUTI has resigned as a Director of the Bankw.e.f. December 06, 2007. AXIS Bank Ltd has informed that Fitch Ratings on


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December 14, 2007, has upgraded the Bank's National Long-term rating to „AAA(ind)' from 'AA+ (ind)'. AXIS Bank Ltd hasappointedShri K N Prithviraj as anAdditional Director on the Board at Directors of the Bank.

2008

Axis Bank launches Platinum Credit Card, India's first EMV chip based card. AxisBank set up its branch at Ilanji at Meenakshi Nagar on the Coutralam-Madurai roadon April 16.

2009

Axis Bank today said its board has recommended the appointment of Shikha Sharma,currently chief of ICICI group's life insurance business, as its next managing directorand CEO. Axis Bank has set up a new branch at Perumbavoor. The bank has anetwork of 832 branches along with 8 extension counters and 3622 ATMs across thecountry. Axis Bank, on Wednesday entered into a strategic alliance with MotilalOswal, the financial services firm, in order to facilitate the online trading for the

bank's customers. Axis bank has received final clearance from the Securities andExchange Board of India (SEBI) to begin its mutual fund operations and will launchdebt and equity schemes soon whereas IDBI Bank is awaiting the regulator's permitfor an entry. Axis Bank opened the new branch at Irinjalakuda while it has a networkof 892 branches, 8 extension counters and 3,806 ATMs across the country.

2010

Axis Bank Limited has informed that at the meeting of the Board of Directors heldon January 15, 2010, the following decisions were taken: (1) To appoint Dr. AdarshKishore, former Finance Secretary, Government of India and former ExecutiveDirector, International Monetary Fund representing Bangladesh, Bhutan, India andSri Lanka, as the Non-Executive Chairman of the Bank, subject to RBI approval; (2)To appoint Shri S.B. Mathur, former Chairman, LIC and the National StockExchange of India, as an Additional Independent Director, with immediate effect. AXIS Bank Ltd has appointed Shri M. S. SundaraRajan, former CMD, Indian Bankas an Additional Independent Director with immediate effect.

PROMOTERSAxis Bank Ltd. has been promoted by the largest and the best Financial Institution ofthe country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTIcontributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiariescontributing Rs. 1.5 crore each.

SUU TI - Shareholdi ng 23.53%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act,1963, with a view to encourage savings and investment. In December 2002, the UTIAct, 1963 was repealed with the passage of Unit Trust of India (Transfer of


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Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February2003. In accordance with the Act, the Undertaking specified as UTI I has beentransferred and vested in the Administrator of the Specified Undertaking of the UnitTrust of India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores. TheGovernment of India has appointed Shri K. N. Prithviraj as the Administrator of theSpecified undertaking of UTI, to look after and administer the schemes under UTI -I, where Government has continuing obligations and commitments to the investors,which it will uphold.

VI SI ONS AND VAL UES

VI SI ON 2015 To be the preferred financial solutions provider excelling in customer

delivery through insight, empowered employees and smart use of technology.Core Val ues

Customer Centricity Ethics Transparency Teamwork Ownership

AWARDSAwar ds & recogni tion received by the Bank dur in g the Year 2011

„Best Risk Master‟ award - (private sector category) - 'FIBAC 2011 BankingAwards'

„Most Productive Private Sector Bank‟ Award - 'FIBAC 2011 BankingAwards'

Ranked 3rd Strongest Bank in Asia Pacific region by Asian Banker The CLSA survey on personal banking trends validated again that Axis is the

preferred bank amongst retail consumers. Best Bond house India - 2011 by Finance AsiaAwar ds & recogni tion received by the Bank dur in g the Year 2010

Euromoney – Best Debt House in India Asiamoney – Best Domestic Debt House in India Financeasia – Best Bond House in India FE Best Banks Award – Best New Private Sector Bank, Rank 2 Forbes Fab 50 – The Best of Asia- Pacific‟s Biggest Listed Companies -

second year in a row The Asset Triple A Country Awards 2010:

o Best Domestic Bank, India


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o Best Domestic Bond House, India. Business Today Best Bank Awards - Overall Winner & Consistent Performer

-(Large Banks Category) Business World Best Bank Award- Fastest Growing Large Bank Ranked No. 1 in "overall experience with bank staff" and "overall branch

facilities" by The Hindustan Times-MaRS Survey Report dated, 29th March,2010

Services: - AXIS Bank is India‟s third largest private sector bank.It started its operation in 1994 and after that, the Government ofIndia allowed new private banks to be established. Before it was asUnited Trust of India (UTI) bank that had a special position in theIndian capital markets and has promoted many leading financialinstitutions in the country. Since April 2007, the bank changed itsname to Axis bank. Axis Bank has its registered office at Ahmedabad, while thecentral office of the bank is located at Mumbai. The Bank has a very wide network ofmore than 1281 branches. It has also more than 4000 ATMs across India. Axis bankoffers various products and services to its customer in the country.

Axi s Bank Services

Personal Banking: - Personal Banking offers: - Account

Zero Balance Savings Account – A savings account that doesn‟t requirea minimum balance.

Kr ishi Savings Account – This product has been specially designed forfarmers and others employed in the allied agricultural activities sector. It iseasy to operate and allows you to transact immediately.

Easy Access Savings Account – Instant access to your money anywhere,anytime.

Prime Savings Account – Access to a wide network of over 1281 branches and one of the largest ATM networks.

Corporate Salar y Account – It is designed to offer payroll solutionsthrough in a 24 X 7 environment.

Women‘s Savings Account – Manage your money, your life, and instantaccess to your money anywhere, anytime.

Demat Account – Avail the depository-related services by just opening anaccount with NSDL through Axis Bank.

Senior Citizen‘s Account – It is designed by keeping an eye on Seniorcitizens banking requirements which is totally different and require specialconsideration.

Defense Salar y Account – Absolutely free and no minimum balance isrequired. Specially designed for defense forces.

Tr ust/NGO Savings Account – It is a complete banking solution forTrusts, Associations, Societies, Government Bodies, Section 25 companiesand NGOs.


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Resident Foreign Currency (Domestic) RFC(D) Account – There‟s no need to wonder how to keep your foreign currency safe,fluctuations in forex market, or if you regularly issue cheques and drafts for

payments abroad. Azzadi- No Fril l s – Experience a host of unparalleled features and

heightened convenience. Pension Savings Account – Specially designed for Pensioner‟s (Existing

& Prospective) of Central Govt. Deposits

Fixed Deposits Recurring Deposits Encash 24 Tax Saver Fixed Deposit

Loans Home Loan

Car Loan Personal Loan Loan Against Shares Loan Against Property Loan Against Security Study Loan Consumer Loan

Cards Credit Cards Debit Cards Prepaid Cards

I nvestments Mohur Gold Online Trading Mutual Funds Demat Account A Smile Solution KalBhi, AajBhi

Insurance Life Insurance – 1) Life Insurance Products 2) 5 For Life

Health Insurance – 1) Family Health 2) Silver Health Motor Insurance Jewellery Insurance Personal Accident – Safe Guard Home – 1) Safe Home 2) Safe Home Plus Travel Companion Critical Illness Business advantage

Payments Bill Pay Electronic Clearing Service Tax Payments – 1) Tax e-Payments 2) Direct Tax Payments 3) Pension


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Credit L arge Corporates

Working Capital Finance Term Loans Trade Services Structured Finance Supply Chain Management Overseas Transactions

Agr i Business Kisan Power Powertrac Commodity Power Contract Farming Arthia Power

1. SME Standard2. SME Fast Track3. Microfinance

Capital M arket Debt Solutions Equity Solutions Private Equity, Mergers & Acquisitions Advisory Services Trusteeship Services Depository Services depository Services Capital Market Funding Custodial Services e-Broking

Govt. Business Authorizations Direct Tax Payment Indirect Tax Payment State Tax Payment Pension Disbursement Other Services e-Payments e-Governance Tie-ups Online Tax Payment New Pension System (NPS)

Cash M anagement Services Payment Solutions Collection Solutions

Treasury Forex International Business Money Market


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NRE Savings Account – It permits a NRI to hold and maintain foreigncurrency earnings in Indian rupees.

NRO Savin gs Account – Any person resident outside India may open NRO account and conveniently deposit and manage local rupee fund.

NRI Prime Account - Look forward to some truly exclusive benefits. NRI Priority – You and your family members‟ resident in India enjoy an

unmatched banking experience. Portf oli o I nvestment Scheme (PI S) Account - NRIs can invest in shares

of Indian companies, in secondary market. NRE Salary Account - Minimum of ten NRI employees can opt for Axis

Bank NRI salary accounts. Resident F oreign Cur rency (RF C) Accoun t - It can be opened, held and

maintained by a person resident in India with an authorized dealer. Services

PAN Assistance

Locker NRI Local Post Box Deposits

NRE Rupee Deposit NRO Rupee Deposit FCNR Deposit RFC Term Deposit

Remittances Axis Remit SWIFT

Partner Banks Exchange House Tie-ups NRI Connect

Other Services Mobile Refill Locker Online Shopping

Objective of the study: - The objective of the study of the profitability ratio of the Axis bank is in below: -

To j udge the prof itabil ity positi on of the bank. To measur e the financial health of th e bank. To judge the fin ancial effi ciency of the bank.

Scope of the study: - Now-a-days, banking sector in India has emerged alot. In this perspective, I am going to select a big name of banking sector- AXIS formy study paper. In this study paper I am going to analyze the financial position of theAXIS bank.


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CHAPTER - 3

ANAL YSI S & F I NDI NGS


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DATABASE & M ETH ODOLOGY

To get the proper result of this survey, the data is collected fairly. Mainly the data arecollected from the website of the Reserve Bank of India and the banks which are

under RBI. For conducting the project and analysis we have collected theinformation on cash and bank balance with RBI, balance with banks money at calland short notice, advances other than term loans, other assets, demand deposits,savings bank deposit, other liabilities and provision, percentage of interest income,

percentage of interest spent on deposits, percentage of provision made during theyear, average working funds, borrowings, operating expenses, miscellaneous incomeincluding commission, actual interest paid on borrowings from various sources,actual interest earned on loans and advances, actual interest earned on bank balanceand investments, average deposits, average borrowings outstanding, average loans

and advances, average bank balances and investments, total loans and advancesoutstanding, total deposits outstanding, fixed assets, capital and profit from the balance sheet and loss account of AXIS BANK. For calculating the PerformanceRatio we have calculated Gross Profit, Net Sales, Cost of Goods Sold, OperatingExpenses, and Net Profit after Tax, Operating Profit and Capital Employed. CapitalEmployed including Equity Share Capital, Preference Share Capital, UndistributedProfit and Reserve. This data has been collected fairly during the working periods.

BRI EF H I STORY OF RATI O ANALYSI S

Q. What i s Ratio?In mathematics ratio is defined as a medium of explaining the inter-relation betweentwo numerals or variables. Ratio is computed by dividing one numeral by the other.By means of ratio generally the times by which one numeral is greater than the otheror the proportion of one in relation to the other is expressed. Ratios are oftenmeaningfully used in solving different mathematical problems. In this context it isrelevant to note that through ratio only the arithmetical or quantities relation can be

judged.Q. What i s Accounti ng Ratio?The arithmetical method of ascertaining the inter-relation between any two numericdata expressed in accounting is known as Accounting Ratio. The definition impliesthat in case of an accounting ratio both the components in the form of numerals orvariables used in computing a ratio are taken from the financial statements preparedin financial accounting. In the opinion of J.Batty, accounting ratio „is used todescribe significant relationship which exists between figures shown on a balancesheet, in a profit & loss a/c, in a budgetary control system or in any other part of theaccounting organization.‟

Ratio Analysis: - Ratio Analysis is one of the powerful tools of the financialanalysis. A ratio can be defined as „the indicated quotient of two mathematicalexpressions‟ and as „the relationship between two or more things‟. Ratio is, thus, the


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numerical or an arithmetical relationship between two figures. A ratio can be used asa yardstick for evaluating the financial position and performance of a concern,

because the absolute accounting data cannot provide meaning understanding andinterpretation. A ratio is the relationship between two accounting items expressedmathematically. Ratio Analysis helps the analyst to make quantities judgment withregard to concern‟s fina ncial position and performance. Absolute figures are valuable

but they standing alone convey no meaning unless compared with another.Accounting Ratios show inter-relationship which exist among various accountingdata. When relationships among various accounting data supplied by financialstatements are worked out, they are known as Accounting Ratios. Accounting Ratios can be expressed in various ways:-

A pur e ratio say ratio of cur rent assets to curr ent l iabil i ties is 2:1 or A r ate say cur rent assets are two times of cur rent l iabil i ties or A percentage say current assets are 200% of cur r ent l iabi li ties.

M eaning of Analysis thr ough Accounti ng Ratios:- Different statements prepared in financial accounting are known as financial statements. For ascertainingthe utility and significance of various financial information expressed in thesestatements and in some cases for increasing their effectiveness an in-depth analysisof such financial statements is required. In execution of managerial functions like

planning, decision making, controlling, etc. management needs a steady supply ofonly that financial information which is duly processed and analyzed. As a supplierof such information the financial analysts or the management accountants make asolicitous and in-depth analysis of financial statements the financial analysts use two

specific tools. They are as foll ows:- Preparation of Fund Flow and Cash Flow Statements and RatioAnalysis:- Accounting Ratio Analysis stands for computation of various ratios onthe basis of various information expressed in financial statements and establishmentof inter relationship between the components of each ratio. Such analysis throughratios is a much effective device having a very wide use since a long past. It is a very

popular means of communicating processed information in a nutshell form to themanagement as per its requirement. The ratios computed in the process of analysis

through ratios may be expressed in 4 types. They are as fol lows: - I n multi plies I n time element I n proporti on I n percentage

The financial analyst fixes up various means of expressing ratios on the basis ofrequirement and purpose of the desired information. It is to be stated here that ratioanalysis only sets up arithmetical relationship between the variables used and makesthem more meaningful. The main significance of such analysis is that, where one ofthe components used in a ratio does not carry any definite meaning its relationshipwith the other components may add a new meaning to both of them. For this reason,ratio analysis technique is considered as a device to check up the financial health of


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an organization and to diagnose its financial decrease, if any.

Steps in Ratio Analysis: - The following steps are followed in analysis throughaccounting ratios:-

Coll ection of i nformation

Computation of rati os M aking compar ison Ar r ivi ng at decisions on comments Prepari ng r eport

I mpor tance or Uti l ity or Advantages of Ratio Analysis: - It stands for the process of determining and presenting the relationship of items and groups of itemsin the financial statements. It is a way by which financial stability and health ofconcern can be judged. The following are the main points of the importance of ratioanalysis. They are:-

Usefu l in fi nancial position analysis. Usefu l i n simpl if ying accoun tin g figur es. Usefu l in assessin g the operational eff ici ency. Usefu l in for ecasting purposes. Useful in l ocatin g the weak spots of th e busin ess. Usefu l in comparison of per for mance.

These main points are briefly discussed below:- Usefu l in fi nancial positi on analysis:- Accounting Ratios reveal the

financial position of the concern. This helps the banks, insurance companiesand other financial institutions in lending and making investment decisions.

Usefu l in simpli fying accounting f igures:- Accounting ratios simplify,summarize and systematize the accounting figures in order to make themmore understandable and in lucid form. The highlight the inter-relationshipwhich exists between various segments of the business as expressed byaccounting statements. Often the figures standing alone cannot help themconvey any meaning and ratios help them to relate with other figures.

Useful in assessing the operational efficiency :- Accounting ratioshelp to an idea of the working of a concern. The efficiency of the firm

becomes evident when analysis is based on accounting ratios. The diagnoseof the financial health by evaluating liquidity, solvency, profitability etc. Thishelps the management to assess financial requirements and the capabilities of

various business units. Useful in forecasting pur poses :- If accounting ratios are calculated for anumber of years, then a trend is established. This trend helps in setting upfuture plans and forecasting.

Useful in locating the weak spots of the business:- Accounting ratiosare of great assistance in locating the weak spots in the business even throughthe overall performance may be efficient. Weakness in financial structure dueto incorrect policies in the past or present are revealed through accountingratios.

Useful in compari son of performance:- Through accounting ratios,

comparison can be made between one departments of a firm with another ofthe same firm in order to evaluate the performance of various departments in


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the firm. Manager is naturally interested in such comparisons in order toknow the proper and smooth functioning of such departments. Ratios alsohelp him to make any change in the organizational structure. Besides the

previous points noted, the following are some other advantages of ratioanalysis:-

Expression in a simpli fi ed and condensed for m M easur ement of overall eff ici ency I nter fi rm and inter department compari son M easur ement of solvency M easur ement of pr ofi tabil ity H elp in planni ng pr ocess H elp i n decision maki ng H elp in taking corr ective measur es H elp in controll ing H elp in communi cation

Usefu l to the outsidersFrom the foregoing discussion it is apparent that ratios have wide use not only inmaking financial analysis but also for different other purposes. In fact the utility oreffectiveness of ratio analysis is dependent to a great extent on the purpose of useand the analytical aptitude of the analyst. At present the use of ratios is commonalmost in all managerial activities. J. Batty has rightly stated that ratios can help inexecuting the basic functions of management like forecasting, planning, co-ordination, control and communication.

PROFI TABI L I TY RATI OS

Profitability is the overall measure of the companies with regard to efficient andeffective utilization of resources at their command. It indicates in a nutshell theeffectiveness of the decisions taken by the management from time to time. Theseratios are calculated to enlighten the end results of business activities which are solecriterion of the overall efficiency of a business concern.

1. Gross Profi t Ratio :- This ratio says gross margin on trading and iscalculated as under:-

Gross Profi t Ratio = [Gross Prof i t / Net Sales]* 100Higher the ratio, the better it is. A low ratio indicates unfavorable trend in the formof reduction in selling prices not accompanied by proportionate decrease in cost ofgoods or increase in cost of production. The gross profit should be adequate to coverfixed expenses, dividends and building up of reserves. An important factor whichwill affect the ratio of Gross Profit to Sales is that of the practice of increasing orreducing the sale price of goods said by „mark -up‟ and „mark -down‟. It is importantthat a business keeps up its margin of gross profit; otherwise it may not cover itsoperating expenses and thus provide an adequate return to proprietors.

2. Operating Ratio: - This indicates the proportion that the cost of sales bears to sales. Cost of sales includes direct cost of goods sold as well as otheroperating expenses that is administration, selling and distribution expenses

which have matching relationship with sales. It excludes income andexpenses which have no bearing on production and sales. It is calculated as


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follows:- Operating Ratio = [(Cost of Goods Sold + Operating Expenses) / Net

Sales]* 100Here, Cost of Goods Sold = Openi ng Stock + Purchases + Direct

Expenses + M anuf actur ing Expenses – Closing Stock or Sales – GrossProfit , Operating E xpenses = Admi ni strative Expenses + Sel ling and

Di str ibution Expenses Lower the ratio, better it is. Higher the ratio, the less favorable it is because it wouldhave a smaller margin of operating profit for the payment of dividends and thecreation of reserves. This ratio should be analyzed further to throw light on the levelsof efficiency prevailing in different elements of total cost.

3. Operating Profi t Ratio:- This ratio establishes the relationship betweenoperating profit and sales and is calculated as follows:-

Operating Profi t Ratio = [Operating Profi t / Net Sales]* 100Where, Operating Pr ofi t = Net Profi t + Non-operating Expenses – Non-operating Income Or = Gross Prof i t – Operating Expenses Operating Profit Ratio can be calculated with the help of Operating Ratio as follows:-

Operating Profi t Ratio = 100 – Operating RatioThis ratio indicates the portion remaining out of every rupee worth of sales after alloperating costs and expenses have been met. Higher the ratio, the better it is.

4. Net Profi t Ratio:- This ratio explains per rupee profit generating capacityof sales. If the cost of sales is lower, then the net profit will be higher andthen it will be divided with the net sales, the result is the sales efficiency. Iflower is the net profit per rupee of sales efficiency. The concerns must try forachieving greater sales efficiency for maximizing the ROI. This ratio is veryuseful to the proprietors and prospective investors because it reveals theoverall profitability of the concern. It is calculated as follows:-

Net Profi t Ratio = [Net Profi t after Tax / Net Sales]* 100This ratio differs from the Operating profit Ratio in as much as it is calculated afterdeducting non-operating expenses, such as loss on sale of fixed assets, etc., fromoperating profit and adding non-operating income like interest or dividends oninvestments, profit on sale of investments or fixed assets, etc. to such profit. Higherthe ratio, the better it is because it gives idea of improved efficiency of the concern.

5. Retur n on Capital Employed:- This ratio is an indicator of the earningcapacity of the capital employed in the business. This ratio is calculated asfollows:- Retur n on Capital Employed = [Operating Profi t / Capital

Employed]* 100H ere, Operating Profi t = Profi t befor e I nterest and Tax

Capital Employed = Equi ty Share Capital + Preference Share Capital+ Undistr ibuted Prof i t + Reserves And Surplus + L ong-term L iabili ties

– F ictiti ous Assets – Non-business Assets


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This ratio is considered to be the most important ratio because it reflects the overallefficiency with which capital is used. This ratio is helpful tool for making capital

budgeting decisions.

TURNOVER RATI OSThese ratios will indicate position of assets usage. These ratios are usually calculatedon the basis of sales or cost of sales and are expressed in number of times rather thanas a percentage. Such ratios should be calculated separately for each type of asset.The greater the ratio more will be efficiency of asset usage. The lower ratio willreflect the underutilization of the resources available at the command of the concern.The concern must always plan for efficient use of the assets to increase the overallefficiency. The following are the important Turnover Ratios usually calculated by aconcern.

1. Capital Tur nover Ratio:- This ratio shows the efficiency of capital

employed the business by computing how many times capital employed isturned – over in a stated period. Capital Turnover Ratio = Sales / Capital Employed (i.e. Shareholders‘

F und + long — term L iabil iti es)The higher the ratio, the greater are the profits. A low Capital Turnover Ratio should

be taken to mean that sufficient sales are not being made and profits are lower.

2. F ixed Assets Turnover Ratio: - This ratio measures the efficiency of theassets use. The efficiency use of assets will generate sales per rupee investedin all the assets of a concern. The inefficient use of the asset will result in lowsales volume coupled with higher overhead charges and underutilization of

the available capacity. Hence the management must strive for using totalresources at optimum level to achieve higher ROI. This ratio expresses thenumber of times fixed assets are being turned-over in a stated period. It iscalculated under:-

F ixed Assets Turnover Ratio = Sales / Net F ixed Assets (i .e. FixedAssets less Depreciati on)

This ratio is important in case of manufacturing concerns because sales are producednot only by use of current assets but also by amount invested in fixed assets. Thehigher is the ratio, the better is the performance. On the other hand, a low ratioindicates that fixed assets are not being efficiently utilized.

3. Working Capital Tur nover Ratio: - This ratio shows the number oftimes working capital is turned-over in a stated period. It is calculated asfollows:-

Worki ng Capital Tur nover Ratio = Sales / Net Working Capi tal (i .e.Current Assets – Curr ent L iabil iti es)

The higher is the ratio, the lower is the investment in working capital and greater arethe profits. However, a very high turnover of working capital is a sign of overtradingand may put the concern into financial difficulties. On the other hand, a low WorkingCapital Turnover Ratio indicates that working capital is not efficiently utilized.

4. Total Assets Turnover Ratio: - This is calculated as under:-


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Total Assets Tu rnover Rati o = Net Sales / Total A ssetsA high ratio is an indicator of over-trading of total assets while a low ratio revealsidle capacity. The traditional standard for the ratio is two times.

F I NANCI AL RATI OSThese ratios are calculated to judge the financial position of the concern from long-term as well as short-term solvency point of view. These are two categories:-

1. L iquidity Ratios: - Liquidity Ratios are used to measure the firm‟s abilityto meet short-term resources available to meet these obligations. From theseratios, much insight can be obtained into the present cash solvency of the firmand the firm‟s ability to remain solv ent in the event of adversity.

a) Current Ratio or Working Capital Ratio:- This is the most widelyused ratio. It is the ratio current assets to current liabilities. It shows a firm‟sability to cover its current liabilities with its current assets. It is expressed asfollows:-

Cur rent Ratio = Cur rent Assets / Cur rent L iabil iti esb) L iquid or Acid Test Ratio:- This is the ratio of liquid assets to current

liabilities .It shows firm‟s ability to meet current liabilities with its mostliquid assets. 1:1ratio is considered ideal ratio for a concern because it iswise to keep the liquid assets are those assets which are readily converted intocash and will include cash balances, bill receivable, sundry debtors andshort-term investments. Inventories and prepaid expenses are not included inliquid assets because the emphasis is on the ready availability of cash in cashof liquid assets. Liquid liabilities include all items of current liabilities except

bank overdraft. This ratio is the acid test of a concern‟s financ ial soundness.

It is calculated as under:- L iquid Ratio = L i quid Assets / L iquid Liabil iti esc) Absolute L iquidi ty Ratio:- Though receivables are generally more liquid

than inventories, there may be debts having doubt regarding their stability intime. So, to get idea about the absolute liquidity of a concern, bothreceivables and inventories are excluded from current assets and onlyabsolute liquid assets, such as cash in hand, cash at bank and readilyrealizable securities are taken into consideration. Absolute liquidity ratio iscalculated as follows:-

Absolute L iquidi ty Ratio = [ (Cash i n hand and at bank + Short -term

M arketable Securi ties) / Current L iabili ties]STABI L I TY RATI OS

These ratios help in ascertaining the long-term solvency of a firm which depends onfirm‟s adequate resources to meet its long -term funds requirement, appropriate debtequity mix to raise long-term funds and earning to pay interest and installment oflong-term loans in time. Following ratios are calculated as under:-

1. Fixed Assets Ratio:- This ratio explains whether the firm has raisedadequate long-term funds to meet its fixed assets requirements and iscalculated as under:-

F ixed Assets Ratio = F ixed Assets / Capital EmployedThis ratio gives an idea as to what part of the capital employed has been used in


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purchasing the fixed assets for the concern. If the ratio is less than one it is good forthe concern. The ideal ratio is 6:7.

2. Ratio of Currents Assets to F ixed Assets:- This ratio is worked outas:-

Ratio of Cur rent Assets to F ixed Assets = Current Assets / Fixed AssetsThis ratio will differ from industry to industry and, therefore, no standard can be laiddown. A decrease in the ratio any mean that trading is slack or more mechanizationhas been put through. An increase in the ratio may be reveal that inventories anddebtors have unduly increased or fixed assets have been intensely used. An increasein the ratio, accompanied by increase in profit, indicates the business is expanding.

PERFORM ANCE RATI OSThe financial efficiency is measured through financial or performance ratios byrelating income and come streams to average working funds. The sum total of

average assets is known as average working funds. The ratio worked out under thissegment is shown below:-

1. F inancial Return: - It is the percentage of interest income to averageworking funds.

2. F inancial Cost: - It is the percentage of interest spent on deposits and borrowing to average working funds.

3. Operating Expenses: - It is the percentage of operating expenses toaverage working funds.

4. M iscell aneous Income: - It is the percentage of miscellaneous incomeincluding commission to average working funds.

5. Risk Cost: - It is the percentage of provision made during the year workingfunds


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CHAPTER – 4

CAL CUL ATI ONS & I NTERPRETATI ON OF RATI O


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CALCULATION OF RATIOS: - I have chosen―PROFITABIL I T Y RATIO‖ among the entire ratio and the calculation of thementioned above from the year 2009-2013 is shown below: -

GROSS PROFI T RATI O

NET PROFI T RATI O OPERATI NG PROF I T RATI O NET PROFI T RATI O

GROSS PROFI T RATI O YEAR MAR’13 MAR’12 MAR’11 MAR’10 MAR’09

GROSSPROFIT

9303.13 7437.87 6415.69 5240.55 3724.88

SALES 27182.57 21994.65 15154.81 11638.02 10835.48

% OFGROSSPROFIT

34.22% 33.82% 42.33% 45.03% 34.38%

COM ENTS: - It determines the Gross Profitability of the bank, So, AXIS BANKhas average Gross Profit Ratio of 37.956%.I suggest grabbing the market and gettingthe people to open more saving account and current account.


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NET PROF I T RATI O YEAR MAR’13 MAR’12 MAR’11 MAR ’10 MAR’09

NETPROFIT

5179.43 4242.21 3388.49 2514.53 1815.36

SALES 27182.57 21994.65 15154.81 11638.02 10835.48

% OF NETPROFIT

19.05% 19.29% 22.36% 21.61% 16.75%

COM M ENTS: - It determines the overall profitability of the bank, So, AXIS Bankhas average net profit ratio of 19.81% in the year 2013, and therefore AXIS Bank isin average position as average the ratio, average is the capacity of the bank towithstand adverse economic conditions and vice-versa.


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RETURN ON CAPITAL EM PLOYED (R.O.C.E)YEAR MAR’13 MAR’12 MAR’11 MAR’10 MAR’09

PBT -8,213.18 -6,546.04 -2,176.13 3,909.62 2,893.07

EQUITYSHARE

CAPITAL

467.95 413.20 410.55 405.17 359.01

RESERVE& SURPLUS

32,639.91 22,395.34 18,588.28 15,639.27 9,854.58

RETURNON

CAPITALEMPLOYED

-24.8% -28.7% -11.45% 24.37% 28.32%

COM M ENTS: - It indicated that the AXIS Bank Return on Capital Employed is -

24.8%% for the year 2013 which indicated that there is an increase in Return onCapital Employed. This also shows that Bank has the ability to generate Returns ingreater proportion.


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CHAPTER – 5

SUGGESTI ONS


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CONCLU SI ON & SUM M ARY

From the analysis and interpretation of major findings of AXIS Bank it has beenfound that: -

The profi tabil ity positi on of the bank in dicates that the operating ratios forthe year 2013 and 2012 are much higher than the ideal ratios areconcerned.

Bu t the Gross Prof i t Ratio and Net Profi t Ratio was lower in both thecorresponding years in terms of ideal ratio. The return on CapitalEmpl oyed and Operating Pr ofi t Rati o were at manageable level. H ence wecan say that the bank must take perspective measures to improve itsconditi on as the overall conditi on of the bank was not at all satisfied.

Ratios in dicates that the bank was better i n th e year 2011, 2012 and 2013 incompar ison to the year 2009 and 2010 as the F in ancial Retur n was goodfor th e years.

H owever , we can say that the bank must take effective measur es to attai n i tsgoal by December 2014 successful ly.


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RECOMMENDATIONThe bank is in that position from where it cannot come backward of its way of

journey. So I recommend that: -o The company first uplifts its shareholder‘s funds. o Then th e bank r educes it s funds to use in reducin g the return on capital

empl oyed to increase the activi ty posi tion.o Then th e bank in creases its sales to increase its operatin g profi t r atio, net

profit r atio & gross profit r atio.o Then to sur vive the fin ancial h ealth I measur e the financial positi on of the

bank.


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BIBLIOGRAPHY JAI N, S.P. AND N ARANG, K.L.; KAL YANI PUBL I SH ERS; COST AND

M ANAGEMENT ACCOUTING D.M.MITHANI:- MONEY, BANKING, PUBLIC FINANCE AND

I NTERNATIONAL TRADE DATT, RUDDAR AND K.P.M. SUNDHARAM:- INDIAN ECONOMY,

S.CH AND & SONS, NEW DEL H I , 1997 http://www.google.com http://www.axisbank.co.in http://www.rediffmoney.com http://www.yahoo.co.in Wikipedia COST AND MANAGE MENT ACCOUNTING; PRINCIPLES,

PRACTI CE; DEY; DUTTA; CHATTERJEE VASAN DESAI; HIMALAYA PUBLISHING HOUSE; THE INDIANFI NANCIAL SYSTEM & DEVELOPM ENT

GORDON & NATARAJAN; HIMALAYA PUBLISHING HOUSE;F I NANCI AL M ARKETS AND SERVICES

JOURNAL S AND AN NUAL REPORT OF AX I S BANK M ODERN ACCOUNTING TH EORY & M ANAGEM ENT ACCOUNTING;

DEBASHI SH BANERJEE

http://www.axisbank.co.in/http://www.rediffmoney.com/http://www.yahoo.co.in/http://www.yahoo.co.in/http://www.rediffmoney.com/http://www.axisbank.co.in/


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ANNEXURE ANNUAL RESUL TS OF 2009-2013

Annual resul ts in bri ef (Rs crore)YEAR M ar ' 13 M ar ' 12 M ar ' 11 M ar ' 10 M ar ' 09

Sales 27,182.57 21,994.65 15,154.81 11,638.02 10,835.48

Operatingprofit

18,517.89 14,844.52 9,095.35 6,539.11 7,037.59

Interest 17,516.31 13,976.90 8,591.82 6,633.53 7,149.27

Grossprofit

9,303.13 6,415.69 6,415.69 5,240.55 3,724.88

EPS (Rs.) 110.68 102.67 82.54 62.06 50.57

Annual r esul ts in detail s:-YEAR M ar ' 13 M ar ' 12 M ar ' 11 M ar ' 10 M ar ' 09

Other income 6,551.11 5,420.22 4,632.13 3,945.78 2,896.88

Stock adju stment

Raw mater ial

Power and fuel

Employee expenses 2,376.98 2,080.17 1,613.90 1,255.82 997.66

Excise

Admin and sell in gexpenses

Research and

developmentexpenses

Expensescapitalized

Oth er expenses 4,537.26 3,926.93 3,165.53 2,453.90 1,860.55

Provisions made 1,750.44 1,143.03 1,280.03 1,389.19 939.68

Depreciation


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Taxation 2,373.26 2,045.63 1,747.17 1,336.83 969.84

Net prof it / l oss 5,179.43 4,242.21 3,388.49 2,514.53 1,815.36

Extra-ordinary

item

Pri or yearadjustments

Equi ty capital 467.95 413.20 410.55 405.17 359.01

Equi ty dividendrate

Agg. of non-pr om.

shar es (Lacs)

2712.40 2234.65 2200.56 2151.29 1789.30

Agg. of n on- promote H olding

(%)

57.96 54.08 53.60 53.10 49.84

OPM (%) 68.12 67.49 60.02 56.19 64.95

GPM (%) 27.58 27.11 32.42 33.63 27.12

NPM (%) 15.35 15.47 17.12 16.14 13.22

BAL ANCE SH EET OF 2009-2013Bal ance sheet (Rs crore)

YEAR Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

Sour ces of f undsOwner ' s fund:-

Equityshare

capital

467.95 413.20 410.55 405.17 359.01

Shareapplication

money

0.17 1.21

Preferenceshare

capital

Reserves & 32,639.91 22,395.34 18,588.28 15,639.27 9,854.58


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surplus

Loan f unds:-Secured

loans- - - - -

Unsecuredloans

2,52,613.59 2,20,104.30 1,89,237.80 1,41,300.22 1,17,374.11

Total

Uses of fundsF ixed assets: -Gross block 2,355.64 2,259.33 2,273.15 2,107.98 1,741.86

L ess :revaluation

reserve

- - - - -

L ess :accumulateddepreciation

942.79 726.45

Net block 2,355.64 2,259.33 2,273.15 1,165.18 1,015.40

Net current assets:-Current

assets, loans& advances

2,04,032.52 1,76,242.47 1,47,039.95 3,901.06 3,745.15

L ess : currentliabilities &provisions

10,888.11 8,643.28 8,208.86 6,133.46 9,947.67

Total net

cur rent assets

1,93,144.41 1,67,599.19 1,38,831.09 -2,232.40 -6,202.52

M iscel laneousexpenses not

written

Total 3,09,237.59 2,63,050.60 2,13,095.85 54,964.83 41,200.72

Notes:-Book value

ofunquoted

- - - - -


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investments

Marketvalue ofquoted

investments

- - - - -

Contingentliabilities

5,76,010.77 5,14,871.98 4,77,864.55 3,31,881.90 1,34,334.43

Number ofequityshare

outstanding(Lacs)

4679.54 4132.04 4105.46 4051.74 3590.05

PROFI T & L OSS A/C OF 2009-2013Profi t loss account (Rs cror e)

YEAR Mar ' 13 Mar ' 12 Mar ' 11 Mar '1 0 Mar ' 09

Income:-Operating

income27,182.57 21,994.65 15,154.81 15,407.74 13,550.95

Expenses:-Material

consumed- - - - -

Manufacturingexpenses

- - - - -

Personnelexpenses

2,376.98 2,080.17 1,613.90 1,255.82 997.66

Selling

expenses

47.27 46.32

Administrativeexpenses

4,185.52 3,584.70 2,875.94 3,529.35 2,357.78

Expensescapitalized

- - - - -

Cost of sales 6,562.50 5,664.86 4,489.84 4,832.44 3,401.76

Operatingprofit

3,103.76 2,352.88 2,073.14 3,941.77 2,999.92


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Otherrecurring

income

6,551.11 5,420.22 4,632.13 202.17 81.81

AdjustedPBDIT

9,654.87 7,773.10 6,705.28 4,143.94 3,081.73

Financialexpenses

17,516.31 13,976.90 8,591.82 6,633.53 7,149.27

Depreciation 351.73 342.24 289.59 234.32 188.67

Other wri teoffs

Adjusted PBT -8,213.18 -6,546.04 -2,176.13 3,909.62 2,893.07

Tax charges 2,373.64 2,045.99 1,747.63 1,492.37 970.12

Adjusted PAT 5,179.43 4,242.21 3,388.49 2,518.40 1,823.56

Nonrecurringitems

-3.87 -8.20

Other n on- cash

adjustments

Reported netprofit

5,179.43 4,242.21 3,388.49 2,514.53 1,815.36

Earningsbefore

appropriation

12,508.88 9,211.98 6,815.92 4,862.62 3,369.23

Equitydividend

843.86 658.24 573.00 567.45 420.52

Preferencedividend

- - - - -

Di vidend tax 143.37 111.83 97.35

Retainedearnings

11,521.64 8,441.90 6,145.57 4,295.17 2,948.71

bba final project2

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