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CITY PREMIER COLLEGE

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.
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IMPORTANCE

The study enables us to have access to various facts of the organization.


It helps in understanding the needs for the importance and advantage of materials in
the organization, the study also helps to exposure our minds to the integrated materials
management the various procedures, methods and technique adopted by the organization.
The study provides knowledge about how the theoretical aspects are put in the
organization in terms of described below.
To study and analyze the financial position of the Bidnath Ayurved through ratio
analysis.
The recommendation of measures for improving the financial performance of
organization.
The analysis of profitability position of the Baidnath Ayurved.
The assessment of return on investment.
To analyze the asset turnover ratio.
The measures for effective and efficient usage of inventory.

COMPANY PROFILE
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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

Private Limited Company


Total Number of Employees

501 to 1000 People


Annual Turnover

Rs. 100 - 500 Crore

Company USP
Primary Competitive Advantage

Packaging/Payment and Shipment Details


Payment Mode

C
heque

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nline
Shipment Mode

B
y
Roa
d

By
Air

B
y
Sea

Incorporated in the year 1917, at Nagpur (Maharashtra, India), we, Shree


Baidyanath Ayurved Bhawan Pvt. Ltd., are the renowned Manufacturer and Exporter of
a wide assortment of Anti Diabetic, Anti Hemorrhoids, Bones & Joints, Cardiac Support,
Chemotoxicity & Antioxidant, Detoxification, etc. Our company was established in the
year 1918, by Late Pt. Ram Narayan Sharma, for encouraging and boosting research
activities in Ayurveda field and also established a trust Pt. Ram Narayan Sharma Research
Trust for meeting this objective. Our sister concern company, Siddhayu Ayurvedic
Research Foundation Pvt. Ltd. is a leading contract manufacturer of Nutritional and
Dietary Supplements. In our product array, we have over 700 formulations that are sold at
over 1,00,000 retail outlets, we are presently catering to over 50,000 practitioners. The
products offered by us are effective and safe to consume formulations we offer provide
solutions for liver support, pain relief / rheumatology, stress relief/neurology, herbal sexual
vitalizes, pediatrics, gynecology, digestion support, respiratory /cough cold, cardio support,
tablets in diabetology, cosmetics & medicated oils and general/other tonics.
Our organization has a huge and world-class manufacturing unit that enables us to
process supreme quality range of products. Our infrastructure is divided into various units
like manufacturing unit in various sub departments like manufacturing, quality testing, R &
D, sales & marketing, packaging, etc. The manufacturing unit is well-resourced with all the
most advanced machinery and cutting-edge tools which enable us to process our entire
product range in bulk quantity to meet the mass requirements of our respected clients. The
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machines installed at our infrastructure are regularly upgraded as per the latest technological
developments. With the help of our qualified and efficient professionals, we are able to offer
our clients high quality range of products. Our professionals make use of most advanced
techniques and the best quality basic ingredients to process these products. We conduct
training and development sessions for our professionals on regular basis to keep them
updated with all latest technologies and techniques.
For maintaining a consistent level of quality in our entire product range, we check the
quality at our each business process and our quality analysts thoroughly test each and every
product right from the selection of basic ingredients till the final delivery of products. Our
organization has achieved a great success in this domain and have earned huge client base
across the globe for our ethical business practices, transparent business dealings, cost
effective prices and timely deliveries. We also offer these products with the high quality
packaging material in order to ensure its safe transfer at clients end. We are a customercentric company and constantly focus on attaining the utmost clients satisfaction in the most
efficient manner. With the help of our skilled professionals, we are able to process our
products as per the clients variant needs. Apart from this, we also point up the precious
feedback of our valuable clients in order to improve the quality of our product range. Some of
our esteemed clients are Evans Medical PLC, Nigeria (ex-GlaxoSmithKline), Edge
Pharmaceuticals, Russia (ex-IPCA) and SuKinn Healthcare, USA.
Under the iconic leadership of our mentors, Mr. Pranav Sharma / Mr. Sachin
Binekar", we have already created a special position of pride in the industry. Their extremely
sharp business acumen and farsightedness has enabled us to cater a huge client base all across
the globe.

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
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We are backed by an experienced team of doctors, pharmacists, chemists and other
allied workers. It is their combined effort and sincerity, which has helped us today to reach
the top most level in todays competitive market. Our sound infrastructural base is well
equipped with all the high tech machines and equipment that assure the preparation of finest
quality of Ayurvedic and herbal medicines and cosmetics. All our Ayurvedic medicines are
prepared on the basis of Granthoktha in fully automatic state-of-the-art plants spread all
over India.
Quality Control
We at Baidyanath strive to maintain the quality of our herbal medicines, thus in
addition to the standard manufacturing processes; we have our own stringent quality control
systems. We make every effort to keep up the cleanliness and hygienic levels of our
production units right from the stage of procurement of raw materials. Moreover, each of our
medicines undergoes various strict quality control checks not only through specialized
machinery but also manually, under the guidance of our experts. Special concern is given to
the packing of the herbal medicines to keep their therapeutic properties intact for a longer
period of time.
Our registration from Indian Foods and Drugs Administration (FDA) is the
manifestation of the high quality of our herbal medicines. Moreover, we have been
successfully meeting the highest standards of United States Foods and Drugs Administration
for more than 50 products, which are being exported.
Effectiveness
A medicine can achieve a remarkable place in the market, only, when it gives
effective results. Through these decades, our range of Ayurvedic and herbal medicines has
been well-known to provide great results for various types of ailments. The increasing
demand of our medicines is the proof of their result-oriented nature. We offer Ayurvedic and
herbal medicines in the form of tablets, capsules, soft gel capsules, granules, powders, selfgenerated alcohol containing elixir preparations (Asavas / Arishtha), syrups and medicated
oils.

CITY PREMIER COLLEGE

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:

United States of America

Romania

Nigeria

Ukraine

Russia

Kazakhtan

U.K

Ghana

Nepal

Sri-Lanka

Poland

OTHER IMPORTANT SERVICES :7

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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

PRODUCT :Respiratory / Cough Cold Medicine


We offer different formulations for respiratory ailments including
cough and cold. Based on herbal and Ayurvedic constituents, these are
available in form of syrups, chewable tablets, nasal drops, powder.
Liver Support Medicine
We have a wide variety of Ayurvedic Liver products, which are in
easily available in the market and have been found to be very effective for
liver. These help in providing relief from problems related.
Pediatrics Medicine
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We also offer a wide range of ayurvedic products for everyone
including infants & teens. At the time of formulation of these medicines,
we take special care to ensure that our products are completely.
Cardio Support Medicine
We also offer Ayurvedic formulations for cardio support. The
solutions offered by us include Cardiwin, which is used for treating arterial
blockage that culminates into Coronary Artery Disease. Our herbal.
Madhumehari Granules
Madhumehari granules (It is an effective remedy for diabetes with
its efficacy observed in NIDDM [Non Insulin Dependent Diabetes Mellitus]
that helps in regulating high blood sugar levels and in preventing.
Digestion Support Medicine
Digestion support ayurvedic formulations offered by us include
Digestive Elixir that is a Carminative & Stomachic and helps in toning up
digestion related problems. Being mild laxative, it also provides.

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

CITY PREMIER COLLEGE


We also offer Ayurvedic formulations for meeting the relief demands
from pains including rheumatology. It provides relief without side effects of
non-steroidal anti-inflammatory drugs that are commonly.
Tablets In Diabetology
We also hold expertise in offering tablets in diabetology. These
effective Diawin tablets are highly effective supplements for Diabetics and
help in relieving complications associated with increased blood.
Stress Relief / Neurology Medicine
Highly stressful lives have led to steep increase in number of cases
of hypertension, cardiac disorders, depression, insomnia as well as other
lifestyle diseases. We offer stress relief and neurology.

OBJECTIVE OF THE STUDY

To determine the amount of working capital requirement and to calculate various.


To analyze the working capital Management of Canera Bank.
To study of the sources and uses of working capital.
To know the role of working capital in financial position of the Canera Bank
To find out affecting factors of working capital of Canera Bank.

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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
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CITY PREMIER COLLEGE

The study is confined to the financial management of Canara Bank.


Comparison of various component in financial statements for the F. Y. 20132014, 2014-2015, and 2015-2016. The study is analysis of all the available
components of ratio analysis and to make item wise analysis of the financial
statements.

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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.

Data Collection Methods


1. Primary Data
Information collected from internal guide and finance manager. Primary data is
first hand information.
2. Secondary Data
Bank balance sheet and profit and loss account. secondary data is second hand
information. Both the primary and secondary data has been utilized.
Data Collection Tools

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.

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Secondly the study is based on the annual reports of the Bank for a period of 3 years
from 2011-12 to 2013-14 the reason for restricting the study to this period is due time
constraint.

DATA ANALYSIS & INTERPRETATION

Particulars

BALANCESHEET AS AT 31 MARCH (rupees in crores)


As at
Schedule
As at 31.03.2013
31.03.2014
No.

Rupees

Rupees

Rupees

Share Capital

443.0000

443.0000

Reserves & Surplus

22246.9556

19596.8188

Deposits

327053.7271

293436.6416

Borrowings

15525.3916

14261.6458

Other liabilities and prov

8891.1184

8206.7505

374160.1927

335944.8567

Capital and liabilities

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

Bills for Collection


Accounting Policies

17

Notes on Accounts

18

15

Rupees

CITY PREMIER COLLEGE

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH


(rupees in crores)
Particulars
INCOME
Interest Earned
Other Income
TOTAL
EXPENDITURE
Interest Expended
Operating Expenses
Provisions and Contingencies
TOTAL
NET PROFIT FOR THE YEAR
APPROPRIATIONS
Transfer To Statutory Reserve
Capital Reserve
Investment Reserve Account
Revenue Reserve
Special Reserve
Proposed Dividend
Dividend Tax
TOTAL
ACCOUNTING POLICIES
NOTES ON ACCOUNTS
Earnings per share(in 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

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BALANCESHEET AS AT 31 MARCH
Particulars

Schedule

As at 31.03.2015

No.

Rupees

Share Capital

443.0000

Reserves & Surplus

24434.8789

Deposits

355855.9913

Borrowings

20283.3738

Other liabilities and prov

11325.4546

As at 31.03.2014
Rupees

Rupees

Capital and liabilities

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

Bills for Collection

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

CITY PREMIER COLLEGE


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH

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

Provisions and Contingencies

3017.9067

TOTAL

34358.8399

NET PROFIT FOR THE YEAR

2872.1029

23161.3116
4673.7434
2660.4500
30495.5050
3282.7130

APPROPRIATIONS
Transfer To Statutory Reserve

720.0000

Capital Reserve

43.0684

Investment Reserve Account

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

Earnings per share(in rupees)

64.83

BALANCESHEET AS AT 31 MARCH (rupees in crores)

19

825.0000
5.1500

1185.2630
700.0000

487.3000
80.0000
3282.7130
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CITY PREMIER COLLEGE

Schedule

As at
31.03.2016

No.

Rupees

Share Capital

461.2588

443.0000

Reserves & Surplus

29158.8544

24434.8789

Deposits

420722.8182

355855.9913

Borrowings

27230.6366

20283.3738

Other liabilities and prov

14348.2863

11325.4546

491921.8543

412342.6086

Particulars

As at
31.03.2015
Rupees

Rupees

Capital and liabilities

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

Bills for Collection


Accounting Policies

17

Notes on Accounts

18

20

Rupees

CITY PREMIER COLLEGE


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH
(rupees in crores)
Particulars

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

Provisions and Contingencies

4357.9977

3017.9067

TOTAL

41042.1734

34358.8399

NET PROFIT FOR THE YEAR

2438.1946

2872.1029

Transfer To Statutory Reserve

650.0000

720.0000

Capital Reserve

87.5000

43.0684

Investment Reserve Account

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

Earnings per share(in rupees)

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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

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CHART SHOWING NET CURRENT RATIO


InterpretationAs the current ratio is between 1.03: 1 to 1.02 :1 it denotes that the firm is adequately
liquid and has the ability to meet its current obligations. As the Quick ratio of the firm is
successively decreasing from 1.03:1 in the year 2013-14 to 1.02:1 in the year 2015-16 the
Bank has many paying debtors near ideal ratio of 1:1

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2. Cash ratio:
The ratio between cash plus marketable securities and current liabilities.

CASH RATIO

CASH AND MARKETABLE SECURITIES


_____________________________

CURRENT LIABILITIES
Table . Cash Ratio (Rupees in crores)
SR. NO

Year

CASH & BANK

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

CASH & BANK BALANCES

CHART SHOWING CASH BALANCE AND CURRENT LIABILITY


Interpretation As the cash ratio has decreased considerable in 2015-16 after increasing in
2014-15 ,it shows that Bank has utilized liquidity and increased profitability. The Bank has
effective management.

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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 Debt equity ratio =

TOTAL DEBTS
___________________
SHAREHOLDERS FUNDS

Table Debt To equity ratio (Rupees in crores)


SR. No

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

CHART SHOWING DEBT AND SHAREHOLDERS FUNDS


Interpretation- It indicates the margin of safety to long term creditors. A low debt-equity
ratio implies the use of more equity than debt which means a larger safety margin for
creditors.

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III. ACTIVITY RATIOS


1. DEBTORS TURNOVER RATIO
It is found out by dividing the credit sale by average debtors. Debtors turnover
indicates the number of time debtors turnover each year.
SALES
DEBTORS TURNOVER RATIO

= ----------------------------AVERAGE DEBTORS

Table . DEBTORS TURNOVER RATIO (Rupees in crores)


SR.NO.

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

FIGURE COMPARING SALES AND AVERAGE DEBTORS

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Interpretation- It indicates the speed at which the debtors and the credit collection efforts of
the enterprise. It has a high ratio indicating shorter collection period and prompt payments by
debtors.
2. Fixed asset turnover ratio
The ratio is supposed to measure the efficiency with which fixed assets are employed
a high ratio indicates a high degree of efficiency in asset utilization and a low ratio reflects
inefficient use of assets. However, in interpreting this ratio, one caution should be borne in
mind. When the fixed assets of the firm are old and substantially depreciated, the fixed assets
turnover ratio tends to be high because the denominator of the ratio is very low.

Fixed Asset Turnover Ratio =

Net Sales
__________
Net Fixed Asset

Table 3 : Fixed asset turnover ratio (Rupees in crores)


Sr. NO
1.
2.
3.

Year
201314
201415
2015-16

SALES
33778.22
37230.94
43480.37

NET FIXED ASSETS


375313.55
435386.75
483115.22

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

NET FIXED ASSETS

2013-14

2015-16

FIGURE SALES AND NET FIXED ASSESTS

27

CITY PREMIER COLLEGE


Interpretation-It indicates the firms ability to generate sales per rupee of investment in
fixed assests. As the fixed assets ratio shows a decreasing trend does not means it is less
efficient as it is moderate and balanced.
3.CURRENT ASSESTS TURNOVER RATIO
Sale
Current Asset Turnover Ratio

----------------------Current Asset

Table. Current Asset


turnover ratio (Rupees in

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

DIAGRAM SHOWING CURRENT ASSESTS TURNOVER RATIO


Interpretation-It indicates the firms ability to generate sales per rupee of investment in
current assests. The current assests turnover ratio is slowly increasing trend as a result the
Bank is more efficient in management of current assests.
28

CITY PREMIER COLLEGE

4. CAPITAL TURNOVER RATIO


This ensure whether the capital employed has been effectively used or not this
is also test of managerial efficiency and business performance
Sales
CAPITAL TURNOVER RATIO = _________________________
Capital Employed
CAPITAL EMPLOYED = FIXED ASSET + CURRENT ASSET

+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

CHART SHOWING CAPITAL TURNOVER RATIO


29

CITY PREMIER COLLEGE


Interpretation-The firm does not have too high ratio hence it indicates efficient management
as too high ratio is not good as it indicates of over trading and too low as under capitalization.
5. WORKING CAPITAL TURNOVER RATIO
Working capital turnover indicates for one rupees of sale the Bank to need how many
net current asset this ratio indicates whether or not working has been effectively utilise
market sale.
NET SALES
WORKING CAPITAL TURNOVER RATIO =

__________________
WORKING CAPITAL

Table 6. WORKING CAPITAL TURNOVER RATIO (Rupees in crores)


Sr.NO

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

CHART OF SALES AND WORKING CAPITAL


30

CITY PREMIER COLLEGE


Interpretatio- the working capital turnover ratio suddenly increased in year 2015-16 .The
high ratio indicates the more efficient management and utilization of 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

G.P. RATIO (%)

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

chart showing gross profit, sales and gross pt. ratio


(figures proportional to compare)
31

CITY PREMIER COLLEGE


Interpretation- higher the ratio the more efficient the production or purchase management,
the above ratio denotes good recovery in year 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

Table NET PROFIT RATIO


(Rupees in crores)
SR.NO.

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

CITY PREMIER COLLEGE

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

CHART SHOWING NET PROFIT and sales


Interpretation-the Bank net profit ratio has increased from 9.1 % in 2013-14 to 10.69% in
2015-16 which is ideal for a Bank. Neither too high nor too low net profit indicates better
survival of Bank
3: OPERATING RATIO :The Operating expenses ratio explains the changes in the profit margin ratio. A
higher operating expense is unfavorable since it will leave a small amount of operating
income to meet interest, dividends.

33

CITY PREMIER COLLEGE

Operating expenses ratio=

Operating cost
_________________ X100
Sales

Operating cost = Cost of Goods Sold + Operating Expenses


Operating expenses =Admin expenses+ Selling expenses
Table OPERATING RATIO
(Rupees in crores)
Sr.NO
1.
2.
3.

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

CHART SHOWING OPERATING COST AND SALES


Interpretation-The operating ratio of the firm is decreasing and lowest in 3 years which
indicates that lower the ratio ,greater is the operating profit to cover the non-operating
expenses, to pay dividend and to create reserves.
4

Return on Investment
The conventional approach of calculated ROI is to divide PAT by investment.

34

CITY PREMIER COLLEGE


E.B.I.T
Return on investment(ROI)= __________________X 100
Capital Employed
Table 4. Return on Investment
(Rupees in crores)
Sr.NO

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

Graph showing return on investment


Interpretation- a consistent high ratio from 239.33% in 2013-14 while 2014-15 being the
most profitable year with 277.34% to 254.80% in 2015-16 indicates that the firm is efficient
in the management and utilization of Capital Employed.

CONCLUSION

35

CITY PREMIER COLLEGE


Liquidity ratios, both current ratio and quick ratio are showing effectiveness in
liquidity as in all the years current ratio is greater than the standard 2:1 and quick
ratio is greater than the standard 1:1 ratio.
The firm is maintaining a low cash balance and marketable securities which means
they done cash payments.
Debt equity ratio, solvency ratio and interest coverage ratio are showing an average
increase in the long term solvency of the firm.
The proprietary ratio is showing an average increase which means, the shareholders
have contribute more funds to the total assets.
Average payment period of the firm is showing the credit worthiness of the firm to its
suppliers.
Fixed assets turnover ratio is showing that the firm needs lesser investment in fixed
assets to generate sales.
The increasing trend of current assets turnover ratio indicates that the firm needs
more investment in current assets for generating sales.
The gross profit ratio, net profit ratio is showing the increasing trends. The
profitability of the firm the increasing.
Operating ratio of the Bank has observed decreasing trend, hence it may be good
control over the operating expenses.
The interest that has to be paid is very less when compared to the sales. The firm is
not utilizing the debt conservatively.
The firm is retaining much of the earnings (based on dividend payout ratio) .
The Bank financial performance is very good and also they will increase their
business year by year by expanding their branches.

1 SUGGESTION
36

CITY PREMIER COLLEGE

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

CITY PREMIER COLLEGE

2. M.Y.Khan & P.K.Jai

Financial Management

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

Cost & Management

Accounting & Finance

A/c
4. K.Rajeswara rao & G. Prasad
5. P.Kulakarni

Financial Management

Web-sites:
www.google.com
www.canarabank.in

ANNEXURE
Particulars

BALANCESHEET AS AT 31 MARCH (rupees in crores)


As at
Schedule
As at 31.03.2013
31.03.2014
No.

Rupees

443.0000

Rupees

Rupees

Capital and liabilities


Share Capital

38

443.0000

Rupees

CITY PREMIER COLLEGE

Reserves & Surplus

22246.9556

19596.8188

Deposits

327053.7271

293436.6416

Borrowings

15525.3916

14261.6458

Other liabilities and prov

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

Bills for Collection


Accounting Policies

17

Notes on Accounts

18

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH


(rupees in crores)
Particulars
INCOME
Interest Earned
Other Income
TOTAL

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

CITY PREMIER COLLEGE


EXPENDITURE
Interest Expended
Operating Expenses
Provisions and Contingencies
TOTAL
NET PROFIT FOR THE YEAR
APPROPRIATIONS
Transfer To Statutory Reserve
Capital Reserve
Investment Reserve Account
Revenue Reserve
Special Reserve
Proposed Dividend
Dividend Tax
TOTAL
ACCOUNTING POLICIES
NOTES ON ACCOUNTS
Earnings per share(in rupees)

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

CITY PREMIER COLLEGE


BALANCESHEET AS AT 31 MARCH
Particulars

Schedule

As at 31.03.2015

No.

Rupees

Share Capital

443.0000

Reserves & Surplus

24434.8789

Deposits

355855.9913

Borrowings

20283.3738

Other liabilities and prov

11325.4546

As at 31.03.2014
Rupees

Rupees

Capital and liabilities

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

Bills for Collection

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

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH

41

Rupees

CITY PREMIER COLLEGE

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

Provisions and Contingencies

3017.9067

TOTAL

34358.8399

NET PROFIT FOR THE YEAR

2872.1029

23161.3116
4673.7434
2660.4500
30495.5050
3282.7130

APPROPRIATIONS
Transfer To Statutory Reserve

720.0000

Capital Reserve

43.0684

Investment Reserve Account

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

Earnings per share(in rupees)

825.0000
5.1500

1185.2630
700.0000

487.3000
80.0000
3282.7130
-

64.83

74.10

BALANCESHEET AS AT 31 MARCH (rupees in crores)


Particulars

Schedule

As at
31.03.2016

42

As at
31.03.2015

CITY PREMIER COLLEGE


No.

Rupees

Rupees

Rupees

Share Capital

461.2588

443.0000

Reserves & Surplus

29158.8544

24434.8789

Deposits

420722.8182

355855.9913

Borrowings

27230.6366

20283.3738

Other liabilities and prov

14348.2863

11325.4546

491921.8543

412342.6086

Capital and liabilities

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

Bills for Collection


Accounting Policies

17

Notes on Accounts

18

43

Rupees

CITY PREMIER COLLEGE


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH
(rupees in crores)
Particulars

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

Provisions and Contingencies

4357.9977

3017.9067

TOTAL

41042.1734

34358.8399

NET PROFIT FOR THE YEAR

2438.1946

2872.1029

Transfer To Statutory Reserve

650.0000

720.0000

Capital Reserve

87.5000

43.0684

Investment Reserve Account

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

Earnings per share(in rupees)

44

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