Professional Documents
Culture Documents
INTRODUCTION
ABOUT RATIO ANALYSIS
The ratio analysis is the most powerful tool of financial analysis. Several ratios
calculated from the accounting data can be grouped into various classes according to
financial activity or function to be evaluated.
The information contained in these statements is used by management, creditors,
investors and others to form judgment about the operating performance and financial position
of firm. Uses of financial statement can get further insight about financial strength and
weakness of the firm if they properly analyze information reported in these statements.
Management should be particularly interested in knowing financial strength of the firm to
make their best use and to be able to spot out financial weaknesses of the firm to take suitable
corrective actions.
The further plans firm should be laid down in new of the firms financial strength and
weaknesses. Thus financial analysis is the starting point for making plans before using any
sophisticated forecasting and planning procedures. Understanding the past is a prerequisite
for anticipating the future.
DEFINITION
The indicate quotient of two mathematical expressions and as The relationship
between two or more things. It evaluates the financial position and performance of the firm.
As started in the beginning many diverse groups of people are interested in analyzing
financial information to indicate the operating and financial efficiency and growth of firm.
These people use ratios to determine those financial characteristics of firm in which
they interested with the help of ratios one can determine.
The ability of the firm to meet its current obligations.
The extent to which the firm has used its long-term solvency by borrowing funds.
The efficiency with which the firm is utilizing its assets in generating the sales
revenue.
The overall operating efficiency and performance of firm.
1
IMPORTANCE
COMPANY PROFILE
2
Lar
Lar
Nature of Business
ge
Product
ion
Capacit
y
ge
Product
Line
Exporter
Additional Business
Manufacturer
Provide
Customized
Solutions
Experien
ced R & D
Department
Supplier
Year of Establishment
1917
Ownership Type
Company USP
Primary Competitive Advantage
C
heque
DD
nline
Shipment Mode
B
y
Roa
d
By
Air
B
y
Sea
With the vision of making people aware of the benefits of Ayurveda, Late Vaidya
Pandit Ram Narayan Sharma founded Shree Baidyanath Ayurved Bhawan Pvt. Ltd. in the
year 1919 at Baidyanath Dham, Bihar. Mr. Pranav Sharma, the owner of the company has
been successfully managing his ancestral business for a long time and has taken it to the new
heights of success.
Resources
5
INDUSTRIES SERVED :Our more than 9 decades of industry experience guides us in flawlessly handling the
production demands of a wide range of Ayurvedic formulations. Some of the inducts areas
where these find application include:
Pharmaceutical
Herbal
Cosmetics
Organic
Further, other than meeting the demands of the Indian markets, some of the countries where
we supply our products to include:
Romania
Nigeria
Ukraine
Russia
Kazakhtan
U.K
Ghana
Nepal
Sri-Lanka
Poland
Apart from the solutions mentioned above, we also offer our clients a wide
range of associated services. These include:
Getting all local product name/loan license/any other approvals from
concerned Food & Drug Administration Office in India
Preparing comprehensive Dossier for each of product selected for
ensuring speedy registration in buyers country
Conducting Knowledge Transfer sessions for Sales/Marketing team of
Buyers company
Help in preparing all technical data wherever necessary & desired by
buyers like pamphlets, leaflets and others
Share all Updated Clinical Trial Reports with Buyers for their product
Medicated Oils
We offer a wide variety of ayurvedic formulations for meeting the
demands of hair care, skin care, mud packs and oils. The use of quality
ingredients at the formulation stage also ensures that our solutions.
Gynecology Medicine
We also offer ayurvedic based solutions for gynaecology that
includes womens health tonics for all phases. These are based on
extensive researched formulations and are designed to deliver effective.
Pain Relief / Rheumatology Medicine
10
11
HYPOTHESIS
1. Operating ratio of the bank has observed decreasing trend, hence may be
good control over the operating expenses.
2. The fixed assets turnover ratio of the bank has observed decreasing trend,
hence adequate resource management is necessary
SCOPE OF STUDY
12
13
RESEARCH METHODOLOGY
In view of the objects of the study listed above an exploratory research design has
been adopted. Exploratory research is one which is largely interprets and already available
information and it lays particular emphasis on analysis and interpretation of the existing and
available information.
To know the financial status of the Bank.
To know the credit worthiness of the Bank.
To offer suggestions based on research finding.
To analyze the data acquire from the secondary sources Ratio Analysis The scope of
the study is defined below in terms of concepts adopted and period under focus.
First the study of Ratio Analysis is confined only to the Canara bank.
14
Particulars
Rupees
Rupees
Rupees
Share Capital
443.0000
443.0000
22246.9556
19596.8188
Deposits
327053.7271
293436.6416
Borrowings
15525.3916
14261.6458
8891.1184
8206.7505
374160.1927
335944.8567
TOTAL
ASSETS
Cash and Balances with RBI
Bal.with banks/money at
call/short notice
17795.1357
22014.7924
10384.2651
8693.3228
Investments
102057.4282
83636.0200
Advances
232489.8185
211268.2925
Fixed Assests
10
2857.5368
2844.4049
Other Assests
11
8576.0084
7488.0241
374160.1927
335944.8567
190056.3608
129654.2930
12496.5117
11193.1768
TOTAL
Contingent Liablities
12
17
Notes on Accounts
18
15
Rupees
Schedule No.
No.
Year Ended on
31.03.14
Year Ended on
31.03.13
13
14
30850.6215
2927.5965
33778.2180
22940.0689
2811.4621
25751.5310
15
16
23161.3116
4673.7434
2660.4500
30495.5050
3282.7130
15240.7357
4419.3156
2065.5914
21725.6427
4025.8883
825.0000
5.1500
1020.0000
45.2864
1185.2630
700.0000
487.3000
80.0000
3282.7130
74.10
1693.3018
700.0000
487.3000
80.0000
4025.8882
97.83
17
18
16
17
Schedule
As at 31.03.2015
No.
Rupees
Share Capital
443.0000
24434.8789
Deposits
355855.9913
Borrowings
20283.3738
11325.4546
As at 31.03.2014
Rupees
Rupees
TOTAL
412342.6086
443.0000
22246.9556
327053.7271
15525.3916
8891.1184
374160.1927
ASSETS
Cash and Balances with RBI
15405.9303
Bal.with banks/money at
call/short notice
19308.7723
Investments
121132.8303
Advances
242176.6246
Fixed Assests
10
2862.7184
Other Assests
11
11455.7327
TOTAL
Contingent Liablities
412342.6086
12
249707.5469
13997.7894
Accounting Policies
17
Notes on Accounts
18
18
17795.1357
10384.2651
102057.4282
232489.8185
2857.5368
8576.0084
374160.1927
190056.3608
12496.5117
0
0
Rupees
Particulars
Schedule No.
Year Ended on
Year Ended on
No.
31.03.15
31.03.14
Interest Earned
13
34077.9350
Other Income
14
3153.0078
INCOME
TOTAL
37230.9428
30850.6215
2927.5965
33778.2180
EXPENDITURE
Interest Expended
15
26198.9433
Operating Expenses
16
5141.9899
3017.9067
TOTAL
34358.8399
2872.1029
23161.3116
4673.7434
2660.4500
30495.5050
3282.7130
APPROPRIATIONS
Transfer To Statutory Reserve
720.0000
Capital Reserve
43.0684
205.0000
Revenue Reserve
530.0345
Special Reserve
700.0000
Interim Dividend
Proposed Dividend
576.0000
Dividend Tax
98.0000
TOTAL
2872.1029
ACCOUNTING POLICIES
17
NOTES ON ACCOUNTS
18
64.83
19
825.0000
5.1500
1185.2630
700.0000
487.3000
80.0000
3282.7130
74.10
Schedule
As at
31.03.2016
No.
Rupees
Share Capital
461.2588
443.0000
29158.8544
24434.8789
Deposits
420722.8182
355855.9913
Borrowings
27230.6366
20283.3738
14348.2863
11325.4546
491921.8543
412342.6086
Particulars
As at
31.03.2015
Rupees
Rupees
TOTAL
ASSETS
Cash and Balances with RBI
22153.7808
15405.9303
Bal.with banks/money at
call/short notice
22674.9299
19308.7723
Investments
126828.2550
121132.8303
Advances
301067.4788
242176.6246
Fixed Assests
10
6641.5623
2862.7184
Other Assests
11
12555.8475
11455.7327
491921.8543
412342.6086
223051.4498
249707.5469
16268.9163
13997.7894
TOTAL
Contingent Liablities
12
17
Notes on Accounts
18
20
Rupees
Schedule No.
Year Ended on
Year Ended on
No.
31.03.16
31.03.15
Interest Earned
13
39547.6181
34077.9350
Other Income
14
3932.7562
3153.0078
43480.3680
37230.9428
INCOME
TOTAL
EXPENDITURE
Interest Expended
15
30603.1654
26198.9433
Operating Expenses
16
6081.0103
5141.9899
4357.9977
3017.9067
TOTAL
41042.1734
34358.8399
2438.1946
2872.1029
650.0000
720.0000
Capital Reserve
87.5000
43.0684
205.0000
Revenue Reserve
1107.0799
530.0345
Special Reserve
700.0000
Interim Dividend
299.8195
Proposed Dividend
207.5652
576.0000
Dividend Tax
86.2300
98.0000
TOTAL
2438.1946
2872.1029
APPROPRIATIONS
ACCOUNTING POLICIES
17
NOTES ON ACCOUNTS
18
54.48
64.83
21
I. LIQUIDITY RATIOS
1.
CURRENT RATIO
The ratio between all current assets and all current liabilitie another way of expressing
liquidity. It is a measure of the firms short-term solvency. It indicates the availability of
current assets in rupees for every one rupee of current liability
Current Assets
Current ratio = ________________
Current Liabilities
Table 1. Current ratio(Rupees in crores)
CURRENT
CURRENT
LIABILITIES
RATIO
362726
351470
1.03
201415
398025
387464
1.03
2015-16
472724
462302
1.02
SR.NO
Year
QUICK ASSETS
201314
2
3
1.03
1.03
1.03
1.03
1.03
1.02
1.02
1.02
1.02
1.02
1.01
1.02
2013-14
2014-15
2015-16
GRAPH OF
Current ratio
22
23
CASH RATIO
CURRENT LIABILITIES
Table . Cash Ratio (Rupees in crores)
SR. NO
Year
CURRENT
CASH
201314
BALANCES
28179.41
LABILITIES
351470
RATIO
0.08
201415
34714.7
387464
0.09
2015-16
44828.8
462302
0.093
500,000.00
462302
450,000.00
387464
400,000.00
351470
350,000.00
300,000.00
250,000.00
CASH & BANK BALANCES
200,000.00
CURRENT LABILITIES
150,000.00
100,000.00
50,000.00
28179.41
34714.7
44828.8
0.00
2013-14
2014-15
2015-16
24
II.
LEVERAGE RATIOS
1.
Total Debt To equity ratio Debt equity ratio is computed by dividing Long term
Liabilities divided by Equity. Lower debt equity ratio higher the degree of protection. A
debt-equity ratio of 2:1 is considered ideal.
TOTAL DEBTS
___________________
SHAREHOLDERS FUNDS
Year
TOTAL DEBTS
SHAREHOLDER
DEBT
1.
201314
14521.57
FUNDS
22689.96
RATIO
0.64
2.
201415
16668.18
24877.88
0.67
3.
2015-16
16883.46
29620.11
0.57
50000
29620.11
45000
22689.96
40000
24877.88
35000
30000
SHAREHOLDER FUNDS
25000
20000
14521.57
15000
16668.18
16883.46
2014-15
2015-16
TOTAL DEBTS
10000
5000
0
2013-14
25
= ----------------------------AVERAGE DEBTORS
YEAR
SALES
AVERAGE
DEBTORS
D.T. RATIO
1.
201314
236446.83
31968.33
7.40 times
2.
201415
296139.66
38067.66
7.80 times
3.
2015-16
343666
45278
7.60 times
2014-15
2013-14
31968.33
SALES
38067.66
SALES
AVERAGE
DEBTORS
AVERAGE
DEBTORS
236446.83
296139.66
2015-16
45278
SALES
AVERAGE
DEBTORS
343666
26
Net Sales
__________
Net Fixed Asset
Year
201314
201415
2015-16
SALES
33778.22
37230.94
43480.37
F.A.T.RATIO
0.09
0.08
0.09
483115.22
500000
435386.75
450000
375313.55
400000
350000
300000
2013-14
250000
2014-15
200000
2015-16
150000
100000
50000
43480.37
37230.94
33778.22
0
SALES
2013-14
2015-16
27
----------------------Current Asset
crores)
Sr. NO
Year
SALES
CURRENT ASSETS
C.A.T.RATIO
1.
2.
3.
201314
201415
2015-16
33778.22
37230.94
43480.37
362726
398025
472724
0.093 times
0.094 times
0.092 times
100%
90%
80%
70%
60%
50%
362726
398025
40%
472724
30%
20%
10%
0%
CURRENT ASSETS
SALES
33778.22
37230.94
2013-14
43480.37
2014-15
2015-16
+INVESTMENT-
CURRENT LIABILITY
Table CAPITAL TURNOVER RATIO (Rupees in crores)
Sr.NO
1.
2.
3.
Year
201314
201415
2015-16
SALES
33778.22
37230.94
43480.37
CAPITAL
C.T.RATIO
EMPLOYED
14113.2
13422.7
17064.26
2.39 times
2.77 times
2.55 times
C.T.RATIO
2.8
2.7
2.6
2.5
2.4
2.3
2.2
2013-14
2014-15
2015-16
__________________
WORKING CAPITAL
Year
1.
201314
2.
201415
3.
2015-16
SALES
33778.22
WORKING CAPITAL
w.c.t.ratio
11256
3 times
10561
3.5 times
10422
4.2 times
37230.94
43480.37
11256
33778.22
10561 43480.37
10422
37230.94
50000
WORKING CAPITAL
40000
30000
20000
SALES
10000
0
2013-14
2014-15
SALES
2015-16
WORKING CAPITAL
IV.
PROFITABILITY RATIO
1 . Gross profit ratio : This ratio shows that the margin left after meeting manufacturing
costs. It measures the efficiency of production as well as pricing.
Gross profit
Gross profit margin Ratio = ____________ X100
Net sales
(Total income)
Gross profit= Net sales-Cost of goods sold
Cost of goods sold= Opening stock+ material consumed+ mfg .exp- closing stock
Table 1: Gross profit ratio
(Rupees in crores)
S.NO
Year
GROSS PROFIT
SALES
1.
201314
3354.17
33778.22
9.93
2.
201415
2989.63
37230.94
8.03
3.
2015-16
3147.9
43480.37
7.24
43.48
33.78
37.23
GROSS PROFIT
SALES
GP RATIO()
9.93
8.03
7.24
3.35
2.99
3.15
2013-14
2014-15
2015-16
2 :NET PROFIT RATIO:The firm with a high net margin ratio would be in advantageous position to survive in
the face faling selling price rising cost of production or declining demand for the product.
NET PROFIT
NET PROFIT RATIO=
_____________ X 100
NET SALE
YEAR
1.
2.
3.
201314
201415
2015-16
PROFIT AFTER
TAX
3282.71
2872.10
2438.19
32
SALES
33778.22
37230.94
43480.37
NET PROFIT
RATIO(%)
9.76
7.71
5.60
2014-15
2013-14
3282.71
2872.1
PROFIT
AFTER TAX
PROFIT
AFTER TAX
SALES
SALES
33778.22
33778.22
2015-16
2438.19
PROFIT
AFTER TAX
SALES
43480.37
33
Operating cost
_________________ X100
Sales
Year
201314
OPERATING COST
3516.31
SALES
33778.22
OPERATING RATIO(%)
10.41
3194.41
37230.94
8.58
3395.82
43480.37
7.81
201415
2015-16
50000
43480.37
45000
40000
35000
37230.94
33778.22
30000
25000
OPERATING RATIO
20000
SALES
15000
10000
5000
3516.31
3395.82
3194.41
0
2013-14
2014-15
2015-16
Return on Investment
The conventional approach of calculated ROI is to divide PAT by investment.
34
Year
EBIT
CAPITAL EMPLOYED
R.O.I. RATIO
1.
201314
33778.21
14113.2
239.33
2.
201415
37230.9
13422.7
277.37
3.
2015-16
43480.37
17064.26
254.80
ROI
277.37
280
270
260
250
254.8
ROI
239.33
240
230
220
2013-14
2014-15
2015-16
CONCLUSION
35
1 SUGGESTION
36
The Bank has to increase the profit maximization and has to decrease the operating
expenses.
By considering the profit maximization in the Bank the earning per share, investment
and working capital also increases. Hence, the outsiders are also interested to invest.
The Bank should maintain sufficient cash and bank balances; they should invest the idle
cash in marketable securities or short term investments in shares, debentures, bonds and
other securities.
The Bank must reduce its debtors collection period from 83 & 84 days to 40 days be
adopting credit policy by providing discounts to the debtors.
Return on investment is fluctuates every year. The Bank has to make efforts in increasing
return on investments by reducing its administration, selling and other expenses.
The Bank should increase its interest coverage ratio to serve long term debts.
The net profit of the Bank is increasing over the study period. Hence the organization
maintaining good control on all trees of expenses.
The dividend per share has observed as raising trend over the study period, hence it may
be suggested Canara Bank should take key interest to maximize.
BIBLIOGRAPHY
1. I.M.Pandey
:
37
Financial management
Financial Management
A/c
4. K.Rajeswara rao & G. Prasad
5. P.Kulakarni
Financial Management
Web-sites:
www.google.com
www.canarabank.in
ANNEXURE
Particulars
Rupees
443.0000
Rupees
Rupees
38
443.0000
Rupees
22246.9556
19596.8188
Deposits
327053.7271
293436.6416
Borrowings
15525.3916
14261.6458
8891.1184
8206.7505
374160.1927
335944.8567
TOTAL
ASSETS
Cash and Balances with RBI
Bal.with banks/money at
call/short notice
17795.1357
22014.7924
10384.2651
8693.3228
Investments
102057.4282
83636.0200
Advances
232489.8185
211268.2925
Fixed Assests
10
2857.5368
2844.4049
Other Assests
11
8576.0084
7488.0241
374160.1927
335944.8567
190056.3608
129654.2930
12496.5117
11193.1768
TOTAL
Contingent Liablities
12
17
Notes on Accounts
18
Schedule No.
No.
Year Ended on
31.03.14
Year Ended on
31.03.13
13
14
30850.6215
2927.5965
33778.2180
22940.0689
2811.4621
25751.5310
39
15
16
17
18
40
23161.3116
4673.7434
2660.4500
30495.5050
3282.7130
15240.7357
4419.3156
2065.5914
21725.6427
4025.8883
825.0000
5.1500
1020.0000
45.2864
1185.2630
700.0000
487.3000
80.0000
3282.7130
74.10
1693.3018
700.0000
487.3000
80.0000
4025.8882
97.83
Schedule
As at 31.03.2015
No.
Rupees
Share Capital
443.0000
24434.8789
Deposits
355855.9913
Borrowings
20283.3738
11325.4546
As at 31.03.2014
Rupees
Rupees
TOTAL
412342.6086
443.0000
22246.9556
327053.7271
15525.3916
8891.1184
374160.1927
ASSETS
Cash and Balances with RBI
15405.9303
Bal.with banks/money at
call/short notice
19308.7723
Investments
121132.8303
Advances
242176.6246
Fixed Assests
10
2862.7184
Other Assests
11
11455.7327
TOTAL
Contingent Liablities
412342.6086
12
249707.5469
13997.7894
Accounting Policies
17
Notes on Accounts
18
17795.1357
10384.2651
102057.4282
232489.8185
2857.5368
8576.0084
374160.1927
190056.3608
12496.5117
0
0
41
Rupees
Particulars
Schedule No.
Year Ended on
Year Ended on
No.
31.03.15
31.03.14
Interest Earned
13
34077.9350
Other Income
14
3153.0078
INCOME
TOTAL
30850.6215
2927.5965
37230.9428
33778.2180
EXPENDITURE
Interest Expended
15
26198.9433
Operating Expenses
16
5141.9899
3017.9067
TOTAL
34358.8399
2872.1029
23161.3116
4673.7434
2660.4500
30495.5050
3282.7130
APPROPRIATIONS
Transfer To Statutory Reserve
720.0000
Capital Reserve
43.0684
205.0000
Revenue Reserve
530.0345
Special Reserve
700.0000
Interim Dividend
Proposed Dividend
576.0000
Dividend Tax
98.0000
TOTAL
2872.1029
ACCOUNTING POLICIES
17
NOTES ON ACCOUNTS
18
825.0000
5.1500
1185.2630
700.0000
487.3000
80.0000
3282.7130
-
64.83
74.10
Schedule
As at
31.03.2016
42
As at
31.03.2015
Rupees
Rupees
Rupees
Share Capital
461.2588
443.0000
29158.8544
24434.8789
Deposits
420722.8182
355855.9913
Borrowings
27230.6366
20283.3738
14348.2863
11325.4546
491921.8543
412342.6086
TOTAL
ASSETS
Cash and Balances with RBI
22153.7808
15405.9303
Bal.with banks/money at
call/short notice
22674.9299
19308.7723
Investments
126828.2550
121132.8303
Advances
301067.4788
242176.6246
Fixed Assests
10
6641.5623
2862.7184
Other Assests
11
12555.8475
11455.7327
491921.8543
412342.6086
223051.4498
249707.5469
16268.9163
13997.7894
TOTAL
Contingent Liablities
12
17
Notes on Accounts
18
43
Rupees
Schedule No.
Year Ended on
Year Ended on
No.
31.03.16
31.03.15
Interest Earned
13
39547.6181
34077.9350
Other Income
14
3932.7562
3153.0078
43480.3680
37230.9428
INCOME
TOTAL
EXPENDITURE
Interest Expended
15
30603.1654
26198.9433
Operating Expenses
16
6081.0103
5141.9899
4357.9977
3017.9067
TOTAL
41042.1734
34358.8399
2438.1946
2872.1029
650.0000
720.0000
Capital Reserve
87.5000
43.0684
205.0000
Revenue Reserve
1107.0799
530.0345
Special Reserve
700.0000
Interim Dividend
299.8195
Proposed Dividend
207.5652
576.0000
Dividend Tax
86.2300
98.0000
TOTAL
2438.1946
2872.1029
APPROPRIATIONS
ACCOUNTING POLICIES
17
NOTES ON ACCOUNTS
18
54.48
64.83
44