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FINDINGS

1. The dividend payout ratio net profit is constantly decreasing year by year. In the year 2012 it
was 29.85 crores while in the year 2015 it has decreased to 24.20 crores, but it has gradually
decreased to 17.04 crores in 2013 and was constant during the year 2015 with 17.11 crores but
again it is decreased to 15.66 in 2016. This shows that the dividend payout ratio net profit has
only decreased and it has never increased during those years.
2. The cash profit dividend payout ratio is also decreasing year by year . In the year 2012 it was
26.47 crores and it has gradually decreased to 21.95 crores in 2013 and again gradually decreases
as it was decreased in the previous year , it has decreased to 15.87 crores in 2014 and stays
constant with 15.85 crores in 2015 and again it has just decreased to 14.54 crores in 2016. This
shows that the cash profit dividend payout ratio has only decreased and never increased during
3. The earning retention ratio was 70.11 crores during the year 2012 and has increased to 75.82
crores in 2013 and again gradually increases in the year 2014 with 82.97 crores and stays
constant in the next year 82.80 and again it has just increased to 84.35 in 2016. This shows that
earning retention ratio has increased year by year. The increase in earning retention ratio is good
for the Company
4. The cash earning retention ratio is constantly increasing year by year . the cash earning
retention ratio was 73.49 crores in 2012 . in the year 2013 it is increased to 84.13 crores and
again it is increased in the next year as it is increased in the previous year to 84.13 crores in
2014 and remains constant in the next year with 84.13 crores in 2015 and in the year 2016 it is
just increased to 85.47 crores this shows that the cash earning retention ratio is only increased
and not decreased during thoese 5 years
5. The adjusted cash flow times is constantly decreasing year by year . the adjusted cash flow
times was 97.44 crores in 2012 and in the year 2013 it is just decreased to 91.38 crores . in the
year 2014 it is gradually decreased to 69.74 crores but only from 2015 it has started increasing ,
it is increased to 74.82 crores in 2015 . in the year 2016 again it is just increased to 76.06 crores.
6. The earning per share is constantly increasing year by year. The earning per share was 13.37
crores in 2012 and in the year 2013 it is just increased to 16.74 crores . in the year 2014 it is
gradually increased to 27.46 crores . in the year 2015 it is increased to 34.18 crores and again it
is increased in 2016 as it was increased in previous year , it is increase to 34.18 crores by 2016
. this shows that the earning per share is only increasing and has never decreased during those 5
years
7. The net cash from operating activities was -1124.99 crores in the year 2012 and the Company
was not in good position during that year. Later in the year 2013 there was some improvement ,
like it is increased to 1956.28 crores and there was no big changes in 2013 as it is just decreased
to 1930.64 crores but it is gradually increased to 5599.13 in 2015 . in the year 2016 it is totally
decreased to -505.97 crores. This shows that the Company is facing problem in operating
activities.

8. The net cash from investing activities was -53.87 crores in 2012 and It is just decreased to
-101.33 crores in 2013. In the year 2014 it is again decreased to -209.32 crores and again it is
decreased in the next year as it was decreased in previous year to -309.76 crores in 2015. Only in
the year 2016 it has increased to -200.43 crores and this shows that there were no improvements
during these 5 years.
9.The net cash from financing activities was 997.41 crores during the year 2012 and was
gradually decreased to 180.98 crores in 2013 and again it has decreased to -49.92 crores in 2014
but only in 2015 it is increased to 597.72 crores and again it has just decreased to 497.26 crores .
during the 5 years there were ups and downs in the net cash from financing activities but at last it
has only decreased from 997.41 to 497.26
10.The net cash and cash equivalents were increased and decreased in the last 5 years . in the
year 2012 it is -181.45 crores and it has increased to 2035.93 crores in 2013 and it is just
decreased to 1671.40 crores but in the next year 2015 it has gradually increased to 5887.09
cores and finally it is gradually decreased to -208.24 crores in the last year 2016. This shows that
the Company was good in . the middle years and there were no improvement during those 5
years
11.The opening cash and cash equivalents was 6571.97 crores in the year 2012 and it is just
decreased to 6390.51 crores in 2013 . in the year 2014 it is increased to 8426.44 crores and again
it is increased to 10097.84 crores but it is gradually increased to 15984.93 crores in the year
2016. This shows that the opening cash and cash equivalents has only increased during those 5
years.
12.The closing cash and cash equivalents was 6390.52 crores in 2012. And it is increased to
8426.44 crores in 2013 and again in the year 2014 it is increased to 10097.84 crores. In the year
2015 it is gradually increased to 15984.93 crores and it is just decreased to 15776.69 crores by
the year 2016. This shows that the closing cash and cash equivalents is only increased during
these years.

SUGGESTION
1. The dividend payout ratio should be maintained as the shareholders would prefer to
invest only if the dividend payout increases.
2. The EPS is increasing for the Company on yearly basis. So, the Company should
maintain the EPS so that the holders are retained by the Company.
3. The adjusted cash flow is decreasing for the past few years and this cash flow is
considered as operating or working capital of any Company. But the cash flow is neither
stable nor increasing as it is fluctuating the adjusted cash flow should be maintained and
the cash flow should be planned in such a way that the cash flow should increase on a
yearly basis.
4. Net Cash is the cash that is reserved in the Company for any investing or financing
activities. The cash should be increasing in any business to maintain it sound and healthy
Company. The Net cash should increase on a yearly basis and the net cash is the life
blood of any company or Company for diversification or expansion of it respectively.
5. Opening cash and cash equivalent is the initial investment or opening balance of any
business. But in this case it is for Company, so as per that the opening cash is increasing
for Company and this should be maintained as this will have a drastic impact on the
balance and the Company should also keep up this performance to improve in positive
direction.
6. Closing cash and cash equivalent is the closing balance or net balance available at the end
of the year. The closing cash was increasing substantially for all the years except for the
year 2016 as the balance has pitched down this should be maintained and focused for
better closing balance at the end of each year. The closing balance should be looked for
positive increase as it decreased when compared to other years.
Risk Management strategies of Union Company of India must be revised.
Company must try to reduce its Net and Gross NPA.
Company must try to improve its Capital Adequacy Ratio.
Company must do proper investigation before lending.
Company must do pre and post monitoring of Loans.
Credit worthiness must be checked before giving loans.

Company must not try to take financial risk

CONCLUSIONS
The process of financial risk management is an ongoing one. Strategies need to be implemented and
refined as the market and requirements change. Refinements may reflect changing expectations about
market rates, changes to the business environment, or changing international political conditions, for
example. In general, the process can be summarized as follows:
Identify and prioritize key financial risks.
Determine an appropriate level of risk tolerance.
Implement risk management strategy in accordance with policy.
Measure, report, monitor, and refine as needed. Risk management needs to be looked at as an
organizational approach, as management of risks independently cannot have the desired effect over the
long term. In this project I have analyzed the risk management process of WNS. It was found that Net
and Gross NPA of the Company is increasing which is not good for the Company. Thus we can say that
Company must improve its risk management strategies

Credit Appraisal is a process of appraising the credit worthiness of loan applicants.


The funds of depositors i.e general public are mobilized by means of such advance / investment.
Thus it extremely important for the lender Company to assess the risk associated with credit,
thereby ensure the security for the funds deposited by the depositors.
In UBI the credit appraisal is done by thorough study of the project which involves Following.
1) Evaluation of Management: A detailed study about the promoters is carried out in order to
ensure promoters are experienced in the line of business and are capable to implement and run
the project
2) Technical Feasibility: A detailed study about the technical aspects is done to determine the
technical soundness of the project
3) Financial Viability: A detailed study relating to financial viability of the project is done;
thereby ensuring that project will generate sufficient surplus to repay the loan installment and
interest
4) Risk analysis: It determines the risk associated with the project this is done by performing a
Sensitivity analysis and Credit Rating. With Sensitivity Analysis the projects capacity to service
debts under worsened conditions is determined. Credit rating, provides rating for various
parameters like management, financial, market and so, thereby determine the credit worthiness
of the borrower
5) It is on the basis of the credit risk level, collateral securities to be given by the borrower are
determined. This shows WNS has sound system for credit appraisal

BIBLIOGRAPHY

Books : Management Accounting-Principles and Practice., Shashi K Eighth Edition, Kalyani Publishers, New Delhi.
Financial Management and Policy,
First Edition, Annual Publications, New Delhi.

By Sharma R.K & Gupta


By Bhalla V.K

Management Accounting and Financial Control,


Thirteen Edition, Sultan Chand & Sons, New Delhi(2002).

By Maheshwari S.N

Research Methodology-Methods & Techniques,


Second Edition, Vishwa Prakashan Delhi (1990).

By Kothari C.R

Management of Working Capital,


First Edition, New Century Publications, New Delhi(2003).

By Gupta Sunita.

Cost and Financial Analysis,


Third Revised Edition, Kalyani Publishers, New Delhi.
Management Accounting,
First Edition, New Century Publications, New Delhi(2003).
Cost and Financial Analysis,
Third Edition, Himalaya Publishers, New Delh

By Jain.S.P. & Narang.K.L.


-

By MN Arora

By Jawaharlal

Websites:www.wns.com
www.scribd.com
www.google.com

ANNEXUES
PARTICULARS
FLOW

Net Profit Before Tax

Net Cash From Operating Activities

Net Cash (used in)/from


Investing Activities
Net Cash (used in)/from Financing Activities
Net (decrease)/increase In Cash and Cash
Equivalents

AMOUN
T
0.00
-1124.99

-53.87

997.41

-181.45

Opening Cash & Cash Equivalents

6571.97

Closing Cash & Cash Equivalents

6390.52

STATEMENT FOR THE YEAR 2012

CASH

BALANCE SHEET AS ON 31st MARCH 2012


LIABILITIES

AMOUNT
Rs

ASSETS

Total Share Capital

505.12 Cash & Balances

Equity Share Capital

505.12

Balance with Companys,


Money at Call

AMOUNT
Rs
4,387.27
2,003.24

Share Application
Money

0.00 Advances

53,379.96

Preference Share
Capital

0.00 Investments

25,917.65

Reserves
Revaluation Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities &
Provisions
Total Liabilities

3,587.36 Gross Block


465.68

Accumulated
Depreciation

4,558.16 Net Block


74,094.30 Capital Work In Progress
3,974.40 Other Assets

1,382.03
587.17
794.86
15.56
2,627.50

78,068.70
6,499.18
89,126.0
Total Assets
4

89,126.04

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2012


PARTICULARS

AMOUNT

Income
Interest Earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Selling and Admin Expenses
Depreciation
Miscellaneous Expenses
Preoperative Exp Capitalised
Operating Expenses
Provisions & Contingencies
Total Expenses
Net Profit for the Year
Extraordionary Items
Profit brought forward
Total
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)
Appropriations
Transfer to Statutory Reserves
Transfer to Other Reserves
Proposed Dividend/Transfer to Govt
Balance c/f to Balance Sheet
Total

5,863.71
625.10
6,488.81
3,489.42
866.91
414.23
86.13
956.93
0.00
1,558.15
766.05
5,813.62
675.18
0.00
40.99
716.17
0.00
176.79
24.80
13.37
35.00
81.02
514.04
-0.01
201.59
0.55
716.17

PARTICULARS
AMOUN
AMOUNT
ASSETS
TAMOUNT
Rs
Rs
Net Profit Before Tax
0.00
Total Share Capital
505.12 Cash & Balances
5,917.57
Net Cash From Operating Activities
1956.28
Equity Share Capital
505.12 Balance with
2,508.87
Companys, Money at
Call
Net Cash (used in)/from
-101.33
Share Application
0.00 Advances
62,386.43
Investing
Activities
Money
Preference Share
0.00 Investments
27,981.77
Net
Cash
(used
in)/from
Financing
Activities
180.98
Capital
Reserves
4,228.16 Gross Block
1,487.21
LIABILITIES

NetReserves
(decrease)/increase
In Cash
and Cash
Revaluation
456.59
Accumulated
Equivalents
Depreciation
Net WorthOpening Cash & Cash
5,189.87
Net Block
Equivalents
Deposits

85,180.22 Capital Work In


Progress
Closing Cash & Cash Equivalents
Borrowings
4,215.53 Other Assets
Total Debt
Other Liabilities &
Provisions

2035.93
664.49
822.72
6390.51
2.28
8426.44
3,058.24

89,395.75
8,092.26

102,677.8
Total Assets
8
CASH FLOW STATEMENT FOR THE YEAR 2013

Total Liabilities

BALANCE SHEET AS ON 31st MARCH 2013

102,677.8
8

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2013


PARTICULARS
income
Interest earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Selling and Admin Expenses
Depreciation
Miscellaneous Expenses
Preoperative Exp Capitalised
Operating Expenses
Provisions & Contingencies
Total Expenses
Net Profit for the Year
Extraordionary Items
Profit brought forward
Total
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)
Appropriations
Transfer to Statutory Reserves
Transfer to Other Reserves
Proposed Dividend/Transfer to Govt
Balance c/f to Balance Sheet
Total

AMOUNT
7,382.18
841.80
8,223.98
4,591.96
873.80
620.16
86.37
1,206.30
0.00
1,805.92
980.71
7,378.59
845.39
0.00
0.55
845.94
0.00
176.79
27.80
16.74
35.00
93.71
428.87
211.99
204.59
0.48
845.93

PARTICULARS

AMOUNT

Net Profit Before Tax

0.00

Net Cash From Operating Activities

1930.64

Net Cash (used in)/from


Investing Activities

-209.32

Net Cash (used in)/from Financing Activities

-49.92

Net (decrease)/increase In Cash and Cash


Equivalents
Opening Cash & Cash Equivalents

Closing Cash & Cash Equivalents

1671.40

8426.44

10097.84

CASH FLOW STATEMENT FOR THE YEAR 2014

BALANCE SHEET AS ON 31st MARCH 2014


LIABILITIES

AMOUNT
Rs

ASSETS

Total Share Capital

505.12 Cash & Balances

Equity Share Capital

505.12

Balance with Companys,


Money at Call

AMOUNT
RS
9,454.74
643.10

Share Application
Money

0.00 Advances

74,348.29

Preference Share
Capital

0.00 Investments

33,822.63

Reserves

5,118.19 Gross Block

Revaluation Reserves

1,724.40

Net Worth

7,347.71 Net Block

Deposits
Borrowings
Total Debt
Other Liabilities &
Provisions
Total Liabilities

Accumulated
Depreciation

103,858.65 Capital Work In Progress


4,760.49 Other Assets

2,937.45
741.62
2,195.83
4.57
3,604.10

108,619.14
8,106.43
124,073.2
Total Assets
8

124,073.2
6

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2014

PARTICULARS
Income
Interest earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Selling and Admin Expenses
Depreciation
Miscellaneous Expenses
Preoperative Exp Capitalised
Operating Expenses
Provisions & Contingencies
Total Expenses
Net Profit for the Year
Extraordionary Items
Profit brought forward
Total
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)
Appropriations
Transfer to Statutory Reserves
Transfer to Other Reserves
Proposed Dividend/Transfer to Govt
Balance c/f to Balance Sheet
Total

AMOUNT
9,447.30
1,232.67
10,679.97
6,360.95
845.68
946.34
101.82
1,038.15
0.00
2,178.20
753.79
9,292.94
1,387.03
0.00
0.48
1,387.51
0.00
202.05
34.34
27.46
40.00
111.33
860.86
289.61
236.39
0.65
1,387.51

CASH

PARTICULARS
Net Profit Before Tax

Net Cash From Operating Activities

Net Cash (used in)/from


Investing Activities
Net Cash (used in)/from Financing Activities
Net (decrease)/increase In Cash and Cash
Equivalents

AMOUNT
0.00

5599.13

-309.76

597.72

5887.09

Opening Cash & Cash Equivalents

10097.84

Closing Cash & Cash Equivalents

15984.93

STATEMENT FOR THE YEAR 2015

FLOW

BALANCE SHEET AS ON 31st MARCH 2015


LIABILITIES

AMOUNT
RS

ASSETS

AMOUNT
RS

Total Share Capital

505.12 Cash & Balances

8,992.05

Equity Share Capital

Balance with
505.12 Companys, Money at
Call

6,992.88

Share Application
Money

0.00 Advances

96,534.23

Preference Share
Capital

0.00 Investments

42,996.96

Reserves

6,549.26 Gross Block

Revaluation Reserves

1,685.98

Net Worth

8,740.36 Net Block

Deposits
Borrowings
Total Debt
Other Liabilities &
Provisions
Total Liabilities

138,702.83

Accumulated
Depreciation

Capital Work In
Progress

3,884.90 Other Assets

3,220.65
893.35
2,327.30
7.86
3,124.23

142,587.73
9,647.43
160,975.5
Total Assets
2

160,975.5
1

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2015

PARTICULARS

AMOUN
T

Income
Interest Earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Selling and Admin Expenses
Depreciation
Miscellaneous Expenses
Preoperative Exp Capitalised
Operating Expenses
Provisions & Contingencies
Total Expenses
Net Profit for the Year
Extraordionary Items
Profit brought forward
Total
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)
Appropriations
Transfer to Statutory Reserves
Transfer to Other Reserves
Proposed Dividend/Transfer to Govt
Balance c/f to Balance Sheet
Total

11,889.3
8
1,482.55
13,371.9
3
8,075.81
1,152.36
1,082.54
136.58
1,198.08
0.00
2,760.59
808.97
11,645.3
7
1,726.55
0.00
0.65
1,727.20
0.00
252.56
42.92
34.18
50.00
139.66
1,171.89
259.00
295.48
0.83
1,727.20

PARTICULARS
Net Profit Before Tax

AMOUNT
0.00
CASH FLOW

Net Cash From Operating Activities

-505.07

STATEMENT
FOR THE
YEAR 2016

Net Cash (used in)/from


Investing Activities
Net Cash (used in)/from Financing Activities
Net (decrease)/increase In Cash and Cash
Equivalents

-200.43

497.26

-208.24

Opening Cash & Cash Equivalents

15984.93

Closing Cash & Cash Equivalents

15776.69

BALANCE SHEET AS ON 31st MARCH 2016

LIABILITIES

AMOUNT
Rs

ASSETS

Total Share Capital

505.12 Cash & Balances

Equity Share Capital

Balance with
505.12 Companys, Money at
Call

Share Application
Money

0.00 Advances

Preference Share
Capital

0.00 Investments

Reserves

8,302.69 Gross Block

Revaluation Reserves

1,615.97

Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities &
Provisions
Total Liabilities

Accumulated
Depreciation

10,423.78 Net Block


170,039.74

Capital Work In
Progress

9,215.31 Other Assets

AMOUNT
Rs
12,468.24
3,308.45
119,315.30
54,403.53
3,396.98
1,101.50
2,295.48
9.96
3,360.89

179,255.05
5,483.01
195,161.8
Total Assets
4

195,161.8
5

PROFIT AND LOSS ACCOUNT FOR THE YEAR 2016


PARTICULARS
Income
Interest Earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Selling and Admin Expenses
Depreciation
Miscellaneous Expenses
Preoperative Exp Capitalised
Operating Expenses
Provisions & Contingencies
Total Expenses
Net Profit for the Year
Extraordionary Items
Profit brought forward
Total
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)
Appropriations
Transfer to Statutory Reserves
Transfer to Other Reserves
Proposed Dividend/Transfer to Govt
Balance c/f to Balance Sheet
Total

AMOUNT
13,302.68
1,974.74
15,277.42
9,110.27
1,354.99
1,225.57
160.14
1,351.53
0.00
3,206.76
885.47
13,202.50
2,074.92
0.00
0.83
2,075.75
0.00
277.81
47.21
41.08
55.00
174.37
1,177.09
572.01
325.02
1.63
2,075.75

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