Professional Documents
Culture Documents
of
HIMALAYAN BANK
LIMITED
PRESENTED BY:
Pramod Thapa (064BME625)
Sushil Regmi (064BME646)
Umanga Bhattari (064BME647) Institute Of Engineering (IOE)
Utsavshree Rajbhandari (064BME648) Department of Mechanical Engineering
Pulchowk Campus
Lalitpur, Nepal
Objective of study
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Introduction
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Services
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Financial Statement
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Financial Statement(cont.)
• Balance Sheet
Company’s financial position at the end of reporting period
Also called ‘statement of financial position’
Consist of Assets, liabilities , Ownership’s Equity
• Income statement
Shows whether the company is making or loosing money.
Consist of various income and expenses , PBIT, tax amount and dividend etc.
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Balance sheet
2061/62 2062/63 2063/64 2064/65 2065/66
2004/2005 2005/2006 2006/2007 2007/08 2008/09
Rs. In Million Rs. In Million Rs. In Million Rs. In Million Rs. In Million
Capital Structure
Authorized Capital 1000.00 1000.00 1000.00 2000.00 2000.00
Issued Capital 650.00 772.20 810.81 1013.51 1216.22
Liabilities
Issued and Paid up capital 643.50 772.20 810.81 1013.51 1216.22
Reserve & Surplus 898.25 993.98 1335.69 1499.48 1903.67
Debenture 360.00 360.00 360.00 860.00 500.00
Borrowings 146.05 144.62 235.97 83.18 0.00
Deposits 24814.01 26490.85 30048.42 31842.79 34681.35
Others 556.35 698.74 728.26 876.57 1019.10
Total 27,418.16 29,460.39 33,519.14 36,175.53 39,320.32
Assets
Cash & Bank Balance 2014.47 1717.35 1757.34 1448.14 3048.53
Investment 12133.42 11894.31 13533.01 13858.71 9881.48
Loan, advances & overdraft 12424.52 14642.56 16998.00 19497.52 24793.16
Fixed Assets 295.82 540.82 574.06 726.07 952.20
Others 549.92 665.34 656.73 645.09 644.96
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Total 27418.16 29460.39 33519.14 36175.53 39320.32
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Income statement(P/L statement)
2061/62 2062/63 2063/64 2064/65 2065/66
2004/2005 2005/2006 2006/2007 2007/08 2008/09
Rs. In Million Rs. In Million Rs. In Million Rs. In Million Rs. In Million
Expenditures:
Interest Expenses 561.96 648.84 767.41 823.74 934.78
Overhead Expenses(Employees) 178.59 234.59 272.23 307.53 360.98
Other Operating expenses 277.38 329.70 341.56 329.01 398.32
Dividend Per share (with bonus share) 31.58 35.00 40.00 45.00 43.56
Market Price
www.company.com 920 1100 1740 1980 1760
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Cash flow statement
particulars 2004/05 2006/07 2007/08 2008/09
A.Cash flow from operation activities 585,545,427 590,618,284 273,069,707 978,388,741
1. cash receipt 1,760,345,858 1,897,766,254 1,944,218,385 2,909,793,503
1.1 interest income 1,446,468,083 1,419,900,506 1,442,245,205 2,324,173,095
1.2 commission and discount income 132,815,882 165,447,872 202,888,358 284,302,277
1.3 income from exchange transaction 137,300,987 198,130,134 192,600,803 249,982,606
1.4 recovery of loan written off -2,902,317 42,380,758 4,992,623
1.5 other income 43,760,906 117,190,059 621,032,411 48,342,872
Current year cash flow from all activities 13,286,736 297,118,621 309,198,380 1,600,383,897
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D. Opening balance of cash and bank balance 2,001,184,221 2,014,470,957 1,757,341,251 1,448,142,891
E.Closing balance of cash and bank balance 2,014,470,957 1,717,352,336 1,448,142,831 3,048,528,788 9
Financial Ratio Analysis
Net Income
Net profit =
Revenue
• To measure how much profit is earned per
unit revenue
• Profit margin says margin of safety
• Good at present context of the bank
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1. Profitability Ratios
Return on Asset
Net Income
ROA :=
Total Asset
• measures a company's success in using its
assets to earn a profit
• At the moment company’s earning power is
very low and debt is very high
• Although there is good profit margin but this
figure of ROA shows that the bank is
unsuccessful in using its assets to earn
profit
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1. Profitability Ratios
Return on Equity
3500 30
Net Income
ROE := 3000
25
shareholders?”
• Looks good internally but it is satisfactory
compare to other equal ranking commercial 1000
10
banks
5
500
0 0
2004/05 2005/ 06 2006/ 07 2007/08 2008/ 09
Net profit after tax 308.28 457.46 491.82 635.87 752.83
Averagecommon equity 1541.75 1766.18 2146.5 2512.99 3119.89
ROE(%) 19.995459725.9010972822.9126485
25.3033239324.1300174
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2. Liquidity or Short-Term Solvency ratios
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2. Liquidity or Short-Term Solvency ratio
Current ratio
current asset
Current ratio :=
current liabilites
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3. Asset Management or Activity Ratios
Asset turnover
net sale
Asset turnover =
Avg. total asset
• measures how efficiently the firm is using the
assets
• Turnover means; how many number of times the
assets flow through a firm's operations and into
sales
• Greater rate of turnover or conversion indicates
more efficiency of a firm in managing and utilizing
its assets
• Has been increasing till 062/063 but due to
political crisis decreases during fiscal year
063/064
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4. Financial Structure or Capitalisation Ratios
Debt ratio
Total Debt
Debt ratio =
Total asset
• tells us the proportion of the company's
assets that it has financed with debt
• Decreasing yearly yet not satisfactory
• As bank, this ratio seems to be quite good
because its has used its debt successfully
in investments and loans.
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4. Financial Structure or Capitalisation Ratios
Time-Interest Earned Ratio
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5. Market Test Ratios
Earning per share
Net income
Earning per share =
No. of issued ordinary share
• Profit earned by each shareholder
• Help to decide company whether to
increase or reduce the number of shares
on issue
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5. Market Test Ratios
Price Earnings ratio
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5. Market Test Ratios
Net Income
EPS =
No. of common stocks outstanding
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CONCLUSION
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Thank You