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INTRODUCTION

Introduction to cash flow analysis
Cash is the basic input needed to keep the operations of the business going on a continuing basis; it is also the final output expected to be realized by selling the product manufactured by the manufacturing unit. beginning and the end of the business operations. Sometimes, it so happens that a business unit earns sufficient profit, but in spite of this it is not able to pay its liabilities when the become due. Therefore, a business should be always try to keep sufficient cash, neither more nor less because shortage of cash will threaten the firms liquidity and solvency, whereas excessive cash will not be fruitful utilized, will simply remain ideal and affect the profitability of a concern. Effective cash management, therefore, implies a proper balancing between the two conflicting objectives of liquidity The management of cash also assumes importance because it is difficult to predict cash inflows and outflows accurately and there is no perfect coincidence between the inflows and outflows of cash giving rise to either cash outflows exceeding inflows or cash inflows exceeding outflows. Cash flow statement is one important tool of cash management because it throws light on cash inflows and cash outflows of a particular period. Cash is the both the

Meaning of Cash Flow Statement
A funds flow statement based on working capital is very useful in longrange financial planning but this statement may conceal or exclude too much. This is so because it does not take into considerations the movements among the individual current assets and current liabilities i.e. it shows net change in working capital. Moreover, this statement treats increases in receivables, inventories and prepaid expenses and decreases in accounts payable, outstanding expenses and bank over draft as equivalent to decrease in cash. Likewise, decreases in receivables, inventories and prepaid expenses and increases in creditors, bills payable, outstanding expenses and bank overdraft are treated as equivalent to increases in cash. This is not a correct treatment because this items do not decrease cash or make cash available. Sundry creditors, bills payable, outstanding expenses become payable in the next period. Similarly, inventories and receivable make cash available in the next period. It is quite possible that there may be sufficient working capital as revealed by the funds flow statement and still the company may be unable to meet its current liabilities as and when they fall due. It may be due to an accumulation of inventories and an increase in trade debtors caused by a slow down in collections. In such a situation, a cash flow statement is more useful because it gives detailed information to the management about the sources of cash inflows and outflows. A cash flow statement can be defined as a statement which summarizes sources of cash inflows and uses of cash outflows of a firm during a particular period of time, say a month or a year. Such a statement can be prepaid from the data made available from comparative balance sheet, profit and loss account and additional information. This statement reports cash receipts and payments classified according to entities major activities operating, investing and financing during the period a format that reconciles the begging and ending

cash balances. It reports a net cash inflow or net cash outflow for each activity and for the overall business. It also reports from where cash has come and how it has been spent.

Objectives
Information about the cash flows of an enterprise is useful in providing of financial statements with a basis to assess the ability of the generate cash and cash equivalents and the needs of the those cash flows. The economic decisions that are taken evaluation of the ability of an enterprise to generate cash and the timing and certainty of their generation. The Statement deals with the provision of information about the historical changes in cash and cash equivalents of an enterprise by means of a cash statement which classifies cash flows during the period from operating, and financing activities. flow investing users

enterprise to enterprise to utilize

by users require an and cash equivalents

Enterprises need cash for essentially the cash to conduct their operations. . to pay their obligations.Scope 1. timing and certainty of future cash flows on the basis of what happened in the past. This is the case regardless of the nature of the enterprise’s activities and irrespective of cash can be viewed as the product of the enterprise. 2. This approach is better than accrual basis data presented by profit and loss account and balance sheet. their investors. This statement is often use as an indicator of the amount. as may be the financial enterprise. They need and to provide returns to Usefulness of Cash Flow Statement Cash Flow Statement is very useful to the management for short term planning due to the following reasons:- (i) Predict future cash flows. however different their principal revenue-producing activities might be. enterprise generates and uses cash and cash equivalents. Users of an enterprise’s financial statements are interested in how the whether case with a same reasons. An enterprise should prepare a cash flow statement and should present it for each period for which financial statements are presented.

(ii)

Determine the ability to pay dividends and other commitments.

This statement indicates the sources and uses of cash under operating, investing and financing activities, helps share holders to know whether the business can make the payment of amount of dividends on their investments in shares and creditors to receive interest and principal amount in time. (iii) Show the relationship of net income to changes in the business

cash. Generally there is direct relation between net income and cash. I net income leads to increase in cash and wise versa. But there may be a situation where a company’s net income is high but decrease in cash balance and increase in cash balance when net income is low. Every user is interested to know the reasons or difference between the net income and net cash provided by operations. The net income generally tells the progress of the business while cash flow relates to the liquidity of business. The uses or helped to assess the reliability of net profit with the help of this statement. (iv) Efficiency in Cash Management. This statement is very useful to

the management in evaluating financial policies and cash position. It will help the management to make the reliable cash flow projections for the immediate future and will tell surplus or deficiency of cash so that management may be able to make plan for investment of surplus cash or to tap the sources where from the deficiency is to be met. Thus it is an important financial tool for the management as it helps in the efficient cash management. (v) Discloses Movement of Cash. Previous year cash flow statement

when compared with the budget of that year will indicate as to what extent the resources of the enterprise were raised and applied. Actual results when compared

with the original forecast may highlight the trend of the movement of cash that may otherwise remain undetected,

(vi)

Discloses Success or Failure of Cash Planning.

A

Comparison

of projected Cash flow Statement with the actual Cash flow Statement will reveal the success or failure of cash planning and incase of failure, necessary remedial steps can be taken to improve the position. It also provides better measure for inter period and inter firm comparison.

(vii) Evaluate Management Decision.

This statement, by providing

information relating to companies investing and financial activities, gives the investors and creditors about cash flow information which help them evaluate management decisions.

(viii) Enhances the Comparability of Report.

It

enhance

the

comparability of the reporting of operating performances by different enterprises, because it eliminates the effect of using different accounting treatments for the same transactions and events.

Limitations of Cash Flow Statement
Inspite of various uses of Cash Flow Statement, limitations: 1. Cash Flow Statement gives the main items of inflow and outflow of it has the following

cash only and does not show the liquidity position of the company. 2. This statement is not a substitute of income statement which shows

both cash and non cash items. Therefore, net cash flow does not necessarily mean net income of the business. 3. It cannot replace funds flow statement as it cannot show the financial

position of the concern in totality.

(vi) Financing activities are activities that result in changes in the size the and composition of the owners’ capital (including preference share capital in case of a company) and borrowings of the enterprise. (v) Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Cash equivalents are short term.Definitions The following terms are used in this Statement with the meanings (i) (ii) specified: Cash comprises cash on hand and demand deposits with banks. For an investment readily convertible to a known Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or to qualify as a cash equivalent. Operating activities are the principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities. highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. (iii) (iv) Cash flows are inflows and outflows of cash and cash equivalents. (vii) Cash and Cash Equivalents other purposes. it must be amount of cash and be subject to an insignificant .

an investment normally qualifies as a cash has a short maturity of.risk of changes in value. of activities. cash equivalents. Cash flows exclude movements between items that constitute cash or cash equivalents because these components are part of the cash management an enterprise rather than part of its operating. preference shares of a company acquired shortly before their specified redemption date (provided there is only an insignificant risk of failure of the company to repay the amount at maturity). say. equivalent only when it Therefore. for example. Investments in shares are excluded from cash equivalents unless they are. in substance. investing and financing Cash management includes the investment of excess cash in cash equivalents. . three months or less from the date of acquisition.

generally result from the transactions and other events that enter determination of net profit or loss. fees.Classification of cash flow (i) Cash Flows from Operating Activities The amount of cash flows arising from operating activities is a key indicator of the extent to which the operations of the enterprise have generated sufficient cash flows to maintain the operating capability of the enterprise. in conjunction with other forecasting future operating cash flows. Therefore. repay loans and make new investments without recourse to sources of financing. Cash receipts from royalties. Information about the specific components operating cash flows is useful. Cash payments to suppliers for goods and services. they into the operating pay external of historical information. commissions and other revenue. Examples of cash flows from activities are: (a) (b) (c) (d) Cash receipts from the sale of goods and the rendering of services. Cash payments to and on behalf of employees. dividends. Cash flows from operating activities are primarily derived from the principal revenue-producing activities of the enterprise. in .

An enterprise may hold securities and loans for dealing or trading in which case they are similar to inventory acquired specifically Therefore. for resale. Some transactions. cash flows arising from the purchase and sale of dealing securities are classified as operating activities. investing purposes.(e) Cash receipts and cash payments of an insurance enterprise for premiums and claims. or trading advances and operating activities of that enterprise. (ii) Cash Flows from Investing Activities . annuities and other policy benefits. forward are held for contracts. may give rise gain or loss which is included in the determination of net profit or loss. cash loans made by financial enterprises are usually classified as since they relate to the main revenue-producing activity to a However. option contracts and swap contracts when the contracts dealing or trading purposes. and (g) Cash receipts and payments relating to futures contracts. Similarly. (f) Cash payments or refunds of income taxes unless they can be specifically identified with financing and investing activities. such as the sale of an item of plant. the cash flows relating to such transactions are cash flows from activities.

Cash payments to acquire shares. (f) Cash receipts from the repayment of advances and loans made to enterprise). (d) Cash receipts from disposal of shares. third parties (other than advances and loans of a financial . (b) (c) development Cash receipts from disposal of fixed assets (including intangibles). warrants or debt instruments receipts from those and those held for dealing or of other enterprises and interests in joint ventures (other than instruments considered to be cash equivalents trading purposes). These payments include those relating to capitalized research and costs and self-constructed fixed assets. is have flows. warrants or debt instruments of payments for those and those held for dealing or other enterprises and interests in joint ventures (other than instruments considered to be cash equivalents trading purposes).The separate disclosure of cash flows arising from investing activities important because the cash flows represent the extent to which expenditures been made for resources intended to generate future income and cash Examples of cash flows arising from investing activities are: (a) Cash payments to acquire fixed assets (including intangibles). (e) Cash advances and loans made to third parties (other than advances and loans made by a financial enterprise).

or the receipts are classified as When a contract is accounted for as a hedge of an identifiable position. loans. and Cash repayments of amounts borrowed. or the payments are classified as (h) Cash receipts from futures contracts. and contracts and swap contracts except when the contracts are held trading purposes. Examples arising from financing activities are: is providers of cash flows (a) (b) (c) (d) Cash proceeds from issuing shares or other similar instruments. option for dealing or financing activities. (iii) Cash Flows from financing Activities The separate disclosure of cash flows arising from financing activities important because it is useful in predicting claims on future cash flows by of funds (both capital and borrowings) to the enterprise. forward contracts. Cash proceeds from issuing debentures. option for dealing or financing activities. the flows of contracts and swap contracts except when the contracts are held trading purposes. . forward contracts. cash flows of the contract are classified in the same manner as the cash the position being hedged. notes. bonds.(g) Cash payments for futures contracts. Cash payments to redeem preference shares and other short or long term borrowings.

This statement is prepared in three stages as given below : 1. In addition to the above statements. sale or purchase of asset for cash. additional data are collected to determine how cash has been provided or used e. This will not be equal to the net profit as reported in the profit and loss account. Cash flow statement These are discussed one by one 1. Net profit before taxation and extraordinary items. Net profit before taxation and extra ordinary items. This account of the current period enables to determine the amount of cash provided by or used in operating activities during the accounting period after making adjustments for non cash current assets and current liabilities. Cash flows from operating. The following basic information are required for the preparation for the cash flow statement: (1) Comparative Balance Sheets. (2) Profit and loss account.g. Preparation 0f cash flow statement An organization should prepare a cash flow statement according to according to Account standard-3. (3) Additional data. Balance sheets at the beginning and at the end of the accounting period are required to indicate to indicate the amount of changes that have taken place in assets and liabilities and capital. investing and financing activities. It is so because of taxation and .(e) Payment of dividend. 2. 3.

It is so because current assets (i. Increase in prepaid expenses reduces cash from operations because more cash is paid than is required for their current services.. inventories increase when the current cost of goods purchased is more than the current cost of goods sold leading to reduction in cash. Tax paid and nonoperating items are adjusted to the figure of profit or loss in order to get the net profit before taxation and extraordinary items. All the increases in current assets except cash and decreases in current liabilities decrease cash. investing and financing activities.e. It is so because increase in debtors takes place as current sales are greater than cash collections.g.) charged to the profit and loss account ... inventories as a result of purchases and sales and prepaid expenses caused by operating expenses) and current liabilities (i. i. 2. decrease in current liabilities reduces cash from operations because decrease in current liabilities takes place when they are paid in cash. Cash flows from operating.certain non operating items (e. dividend received or paid. Net profit before taxation and extraordinary items is further adjusted with reference to depreciation in order to get the figure of operating profit before working capital changes. Likewise. loss or profit on sale of fixed assets. fictitious assets written of f etc. current liabilities and tax paid deducted to get the amount of net cash provided or used by operating activities. provision for taxation.. amount transferred to general. debtors as a result of credit sales. This figure is further adjusted for changes in current assets (except cash)/bank balance). Similarly all decreases in current assets except cash and increases in current liabilities increase cash from operations.e. some cash has been saved causing an increase in cash from operations. . Creditors would increase because current purchases are more than the cash paid to them during the current period.e. Changes in fixed assets and fixed liabilities have not been adjusted as these are shown separately in the cash flow statement. Decrease in prepaid expenses indicates that less payment has been made for services than are currently used.

and items of income or expense associated with investing or financing cash flows.creditors because of credit purchases and outstanding expenses caused by nonpayment of some of the expenses of the current period) are directly related to operations. or (b) the indirect method. Reporting Cash Flows from Operating Activities . therefore. considered more appropriate than the method. whereby major classes of gross cash receipts and gross cash payments are disclosed. An enterprise should report cash flows from operating activities using either: (a) the direct method. any deferrals future operating cash receipts or or accruals of past or payments. information about major classes receipts and gross cash payments may be obtained either: (a) from the accounting records of the enterprise. whereby net profit or loss is adjusted for the effects of transactions of a non-cash nature. or indirect of gross cash . Under the direct method. The direct method provides information which may be useful in estimating future cash flows and which is not available under the indirect method and is.

cost of sales (interest and similar income and expense and similar charges for a financial enterprise) in the statement of profit and loss for: i) interest and other items changes during the period in inventories and operating receivables and payables. under excluding the changes . and other items for which the cash effects are investing or cash flows financing Under the indirect method. (b) and non-cash items such as depreciation. deferred taxes. and and (c) all other items for which the cash effects are investing or financing flows. the net cash flow from operating activities may be presented the indirect method by showing the operating revenues and expenses non-cash items disclosed in the statement of profit and loss and during the period in inventories and operating receivables and payables.(b) by adjusting sales. ii) iii) other non-cash items. unrealized foreign exchange gains and losses. provisions. cash Alternatively. the net cash flow from operating activities is determined by adjusting net profit or loss for the effects of: (a) changes during the period in inventories and operating receivables payables.

and the maturities are short. and quick. activities. the owners of properties Examples of cash receipts and payments referred to in paragraph 22(b) are advances made for. investing or activities may be reported on a net basis: (a) financing cash receipts and payments on behalf of customers when the cash flows reflect the activities of the customer rather than those (b) of the enterprise. . and paid over to. Examples of cash receipts and payments referred to in paragraph 22(a) (a) (b) are: the acceptance and repayment of demand deposits by a bank. and the repayments of: (a) principal amounts relating to credit card customers. and c) rents collected on behalf of. except to and 24 are reported on a net Reporting Cash Flows on a Net Basis Cash flows arising from the following operating. funds held for customers by an investment enterprise. the cash receipts and payments for items in which the turnover is amounts are large.Reporting Cash Flows from Investing and Financing Activities receipts An enterprise should report separately major classes of gross cash and gross cash payments arising from investing and financing the extent that cash flows described in paragraphs 22 basis.

A rate that approximates be recorded in currency amount the the foreign currency at the date the actual rate may be used if the result is substantially the same as would arise if the rates at the dates of the cash flows were used. The effect of changes in exchange rates on cash and cash equivalents held in a foreign currency should be reported as a separate part of the reconciliation of the changes in cash and cash equivalents during the period. those which have a period of three months or less. of deposits (b) the placement of deposits with and withdrawal of deposits from other financial of those advances enterprises. . Cash flows arising from each of the following activities of a financial may be reported on a net basis: (a) enterprise cash receipts and payments for the acceptance and repayment with a fixed maturity date. and cash advances and loans made to customers and the repayment and loans Special items 1 Foreign Currency Cash Flows Cash flows arising from transactions in a foreign currency should an enterprise’s reporting currency by applying to the foreign exchange rate between the reporting currency and of the cash flow.(b) (c) the purchase and sale of investments. and maturity other short-term borrowings. for example.

to enable users to understand their nature and effect on and future cash flows of the enterprise. Unrealized gains and losses arising from changes in foreign exchange are not cash flows. However. the effect of exchange rate changes on cash equivalents held or due in a foreign currency is reported in statement in order to reconcile cash and cash equivalents at end of the period. had those cash flows been reported at the end-of-period exchange rates 2 Extraordinary Items The cash flows associated with extraordinary items should be arising from operating. Accounting for the Effects of Changes in Foreign Exchange Rates 4 . investing or financing activities in the cash flow statement. Prior Period Items . investing or financing activities as separately disclosed . The cash flows associated with extraordinary items are disclosed separately as arising from operating. This permits the use of an exchange rate that approximates the actual rate.Cash flows denominated in foreign currency are reported in a manner consistent with Accounting Standard (AS) 11. a weighted average exchange rate for a period may be used for recording foreign currency transactions. Net Profit or Loss for the and Changes in Accounting Policies the present addition to the items required by classified as appropriate and Period. investing and financing activities rates cash and the cash flow the beginning and the from cash flows from and includes the differences. These disclosures are in separate disclosures of the nature and amount of extraordinary Accounting Standard (AS) 5. This amount is presented separately operating. For example. if any.

2 Interest and Dividends Cash flows from interest and dividends received and paid should disclosed separately. Interest paid and interest and dividends received are usually classified operating cash flows for a financial enterprise. . Dividends paid should be classified as cash flows Standard (AS) 10. because they are cost of obtaining financial resources or returns on investments. Some argue that interest paid and interest and dividends received may be classified as operating cash flows because they enter into the determination of net profit or loss. cash classified as cash flows from financing dividends received should be classified as cash flows from investing activities. However. However. The total amount of interest paid during the period is disclosed in the flow statement whether it has been recognized as an expense in the of profit and loss or capitalized in accordance with Accounting Accounting for Fixed Assets. it is considered cash as cash statement each be interest and should be classified as case of other enterprises. it is more appropriate that interest paid and interest and dividends received are classified as financing cash flows and investing cash flows respectively. there is no consensus on the classification of these cash flows for other enterprises. Cash flows arising from interest paid and dividends received in the case of a financial enterprise cash flows arising from operating activities. In the flows arising from interest paid should be activities while interest and from financing activities. Some argue that dividends paid may be classified as a component of flows from operating activities in order to assist users to determine the ability of an enterprise to pay dividends out of operating cash flows. However.

investing or financing activities in a cash flow While tax expense may be readily identifiable with investing or activities. Investments in Subsidiaries. the related tax cash flows are often impracticable to arise in a different period from the cash flows of the Therefore. when it is practicable to identify statement. flows from operating the tax cash flow with an individual transaction that gives rise to cash flows that are classified as investing or financing activities. the total amount of flow are allocated over more than one taxes paid is disclosed 5. Associates and Joint Ventures . the tax cash flow is classified as an investing or financing activity as appropriate. disclosed unless they can be Taxes on income arise on transactions that give rise to cash flows that are classified as operating. However. financing identify and may underlying transactions. taxes paid are usually classified as cash activities.more appropriate that dividends paid should be classified as financing activities because they are cost of obtaining cash flows from financial resources. 3 Taxes on Income Cash flows arising from taxes on income should be separately and should be classified as cash flows from operating activities specifically identified with financing and investing activities. When tax cash class of activity.

The cash flow effects not deducted from those of acquisitions. or a statement to the for example. relating to dividends and advances. by means The separate presentation of the cash flow effects of acquisitions and of subsidiaries and other business units as single line items helps those cash flows from other cash flows.When accounting for an investment in an associate or a subsidiary joint venture. and the portion of the purchase or disposal consideration discharged of cash and cash equivalents. in respect of both disposal of subsidiaries or other business units during following: (a) (b) of subsidiaries or other business units should be presented separately and acquisition and the period each of the the total purchase or disposal consideration. disposals to distinguish of disposals are 7 Non-cash Transactions . An enterprise should disclose. an investor restricts its reporting in the cash flow cash flows between itself and the investee/joint venture. in aggregate. cash flows 6 Acquisitions and Disposals of Subsidiaries and Other Business Units disposals The aggregate cash flows arising from acquisitions and from classified as investing activities.

In view of the variety of cash management practices. The effect of any change in the policy for determining components of cash and cash equivalents is reported in accordance with Accounting Standard and flow . and the conversion of debt to equity. Examples of non-cash (a) (b) (c) items do not transactions are: the acquisition of assets by assuming directly related liabilities. an enterprise discloses the policy which it adopts in determining the composition of cash cash equivalents. Components of Cash and Cash Equivalents An enterprise should disclose the components of cash and cash equivalents and should present a reconciliation of the amounts in its cash statement with the equivalent items reported in the balance sheet.Investing and financing transactions that do not require the use of equivalents should be excluded from a cash flow statement. The exclusion of non-cash transactions from the cash flow statement is consistent with the objective of a cash flow statement as these involve cash flows in the current period. should be disclosed elsewhere in the financial statements the relevant information about these investing cash or cash Such transactions in a way that provides all and financing activities current an Many investing and financing activities do not have a direct impact on cash flows although they do affect the capital and asset structure of enterprise. the acquisition of an enterprise by means of issue of shares.

Examples cash and cash equivalent balances held by a branch of the enterprise in a country where exchange controls or other legal restrictions which the balances are not available for use by the enterprise. Prior Period Items and Accounting Policies. together with a commentary by management. There are various circumstances in which cash and cash equivalent balances held by an enterprise are not available for use by it. and (b) indicating any restrictions the aggregate amount of cash flows that represent increases in operating capacity separately from those cash flows that are required to maintain . on the use of these facilities. the include that operates apply as a result of held by Additional information may be relevant to users in understanding financial position and liquidity of an enterprise. the amount of significant cash and cash equivalent balances the enterprise that are not available for use by it. Net Profit or Loss for the Period. Disclosure of this information.(AS) 5. is encouraged and may include: (a) the amount of undrawn borrowing facilities that may be available for future operating activities and to settle capital commitments. together with a commentary by management. Changes in Other Disclosures An enterprise should disclose.

The separate disclosure of cash flows that represent increases in capacity and cash flows that are required to maintain operating in enabling the user to determine whether the enterprise is the maintenance of its operating capacity. An adequately in the maintenance of its operating operating capacity is useful investing adequately in enterprise that does not invest capacity may be prejudicing future profitability for the sake of current liquidity and distributions to owners.operating capacity. .

The study of financial performance is composed of the following: 1. on the other side. will tried to be analyzed impartially. Analysis of various components of working capital E. tax. 3. expenses etc. Revenues. 4.: Cash Marketable securities receivable and inventories The study takes into consideration the external analyst point of view and with the help of the past and latest financial statements. financial position. Analysis of the liquidity and profitability of the current assets and current liabilities. Analysis of the long term financial of the firm over a period of time. Analysis of the liquidity and between current liabilities and assets.g. 2. the balance sheet shows the liabilities and assets position during the year.RESEARCH DESIGN STATEMENT OF THE PROBLEM: A financial statement contains income statement showing sales. .

OBJECTIVES OF THE STUDY: Based on the information furnished in the financial statements. and 5. 2. 3. explain importance of cash flow statement for investors and other stockholders. familiar with the methodology for preparation of cash flow statement and different components of cash flow statement. 4. explain regulations relating to preparation of cash flows. . various objectives of the cash flow statement 1. comprehend how cash flow statement can be used in real life for different decision making. compare the differences between cash flow statement with other financial statements.

This is the case regardless of the nature of the enterprise’s activities and irrespective of whether cash can be viewed as the product of the enterprise. Enterprises need cash for essentially the same reasons. and to provide returns to their investors. however different their principal revenue-producing activities might be. Users of an enterprise’s financial statements are interested in how the enterprise generates and uses cash and cash equivalents. They need cash to conduct their operations. as may be the case with a financial enterprise. to pay their obligations. 2. An enterprise should prepare a cash flow statement and should present it for each period for which financial statements are presented.SCOPE OF STUDY: The scope of the study is confined to detail analysis of cash flow statement in union bank of india 1. .

 Proper & effective collection of the various data required in to with the analysis in relevance with the current economic growth.  It also included the study of various circulars & notes that were passed by the management in this regard. The methods followed are: Ratio analysis an effective tool in analysis.METHODOLOGY: The schedule that was planned to be executed or the methodology of approach may be explained as follows.  An in depth study of the banking norms & procedures that are used in analyzing the data obtained from the corporal clients. This is the most prominent feature of the study & was executed with utmost care & diligence.  An overview of the procedures followed in analyzing the data obtained. Thus having a higher hand on the literature study of the project as a whole.  An efficient analysis with an eye for errors or blunders that may occur due to inefficiency. TOOLS FOR DATA COLLECTION: The data so collected from various annual reports & financial Statements for 5 years .

objective of Study. . LIMITATION OF THE STUDY: 1. limitation and overview required. statement of Current Assets and Current Liabilities.been classified & tabulated for better understanding & to give a complete picture at 1 place. ANALYSIS AND INTERPRETATION: For the purpose of Analysis and interpretation. TOOLS FOR ANALYSIS: The tabulated data has been analyzed thoroughly through various ratios and graphs. The study could be done only for the past 5 years. CHAPTER SCHEME: Chapter 1: . Finance: Due to limited financial resources as in depth research could not be The face value of the figures given in the balance sheet was used for the project. undertaken. 2. materials and tools used. which is used. Time: The time allotted for the project has been only around 2 months.Research design Consists of research design with the statement of problem.Introduction Chapter 2: . 3. master tables and graphs were used for the effective presentation.

forms a part of our evaluation process in analyzing their financial performance.Chapter 3: . Chapter 5: . It also includes the required graphical presentations wherever necessary. It mainly. PROFILE OF UNION BANK OF INDIA THE VISION STATEMENT .Contains the findings and recommendations & bibliography and annexure to the report that has aided the study.Analysis and interpretation Contains the analysis and interpretation of cash flow statement .Company Profile Chapter 4: .

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forms the vital ingredient in value-based services to effectively reduce the gap between expectations and deliverables. with a proactive approach to the changing needs of the society. to manage efficiently crores of rupees in the course of our national activities. consistent profitability and development of new technologies. value-added services. innovative commercial Bank. sustained growth. Union Bank of India has this far unflinchingly traveled the arduous road to successful banking. We at Union Bank of India. “GOOD PEOPLE TO BANK WITH”. Today. Mahatma Gandhi. Though we have not many banks among us. Union Bank has ensured complete customer delight...UNION BANK OF INDIA.. made available to its valuable clientele in catering to the smallest of their needs. with its efficient. living up to its image of..the ability to gauge the customer's needs well ahead of real-time .. The key to the success of . "We should have the ability to carry on a big bank.. Anticipative banking. This has resulted in a wide gamut of products and services. reiterate the objectivity of our inception to the profound thoughts of the great Mahatma. it does not follow that we are not capable of efficiently managing crores and tens of crores of rupees. A journey that spans 88 years.." Union Bank of India is firmly committed to consolidating and maintaining its identity as a leading.. Since that the golden moment..that was flagged off by none other than the Father of the Nation.THE HISTORY The dawn of twentieth century witnesses the birth of a banking enterprise par excellence.

Regular banking services apart. All Branches of the Bank have been 1135 networked ATMs. with online telebanking facility made available to all its Core Banking Customers . Over the years.any organization lies with its people. Under this solution umbrella. In addition to this. which launched Core Banking Solution in 2002.000 qualified / skilled employees is and ever will be dedicated and delighted to serve the discerning customer with professionalism and wholeheartedness. Mutual Funds and Demat.43% Share Capital held by the Government of India. Individuals and Others. It is one of the pioneer public sector banks. the customer can also avail of a variety of other value-added services like Cash Management Service. The Bank will ever strive in its endeavour to provide services to its customer and enhance its businesses thereby fulfilling its vision of becoming “THE BANK OF FIRST CHOICE IN OUR CHOSEN AREA BY BUILDING BENEFICIAL AND LASTING RELATIONSHIP WITH CUSTOMERS THROUGH A PROCESS OF CONTINUOUS IMPROVEMENT”. The Bank came out with its Initial Public Offer (IPO) in August 20. Insurance. Union Bank is a Public Sector Unit with 55.individual as well as corporate.57 % of Share Capital is presently held by Institutions. No wonder. Union Bank's unique family of about 26. the Bank has earned the reputation of being a techno-savvy and is a front runner among public sector banks in modern-day banking trends. . 2002 and Follow on Public Offer in February 2006. the versatile Internet Banking provides extensive information pertaining to accounts and facets of banking. Presently 44.

Bhopal. Bank has nine General Manager Offices at Ahmedabad. ORGANIZATION STRUCTURE has a lean three-tier structure. Bangalore. product packaging and promoting the product in the market. Delhi. Tier 3 comprises of 54 Regional Offices at various geographical center of the country. Calcutta and Chennai which function as an extended arm of corporate office. The decentralized power structure has accelerated decision making process and thereby Bank quickly responds to changing needs of the customers and has also been able to adjust with the changing environment. • To build sizeable markets share in each of the chosen areas of business through effective strategies in terms of pricing. which is to gain market recognition in the chosen areas. The delegated powers have been enhanced.CORPORATE MISSION • A logical extension of the Vision Statement is the Mission of the Bank. Pune. It also has two Zonal Offices at Bhopal and Pune. Lucknow. to address the expectations of the customers efficiently and handle technology banking with ease. Mumbai. . • To facilitate a process of restructuring of branches to support a greater efficiency in the retail banking field. • To promote confidence and commitment among the staff members. • To sustain the mission objective through harnessing technology driven banking and delivery channels.

In this study I have used Secondary Data. Net NPA and Capital Adequacy Ratio of Union Bank of India. it may be published or unpublished data. all the information which are collected. But mainly data are collected form financial statement (annual report) of Union Bank of India. Secondary data one those which have been already been collected. • To analyze the Gross NPA.OBJECTIVES OF THE STUDY • To analyze the risk management in Banks. information is¬ Primary data ¬are: collected through secondary data. DATA COLLECTION Basically there are methods of data collection they Secondary data To achieve the objective. through data are analyzed interpreted and tabulated to full fill be objective. RESEARCH METHODOLOGY Analysis of past data a helps to understand the effectiveness of Risk Management Strategies of Bank. This is a conclusive research. • To analyze the risk management in Union Bank of India. Some of the data are collected through visit and personal observation. .

Business Operations . it is based on audited accounts and its audited accounts are ambiguous then the result will be misleading. It is worth a while to mention that I have used the following types of published data : • Balance Sheet • Profit & Loss A/c • Prospectus of the Company • General Body meeting reports • Schedules LIMITATIONS OF THE STUDY • The research work is mainly based on secondary data that is. • The research work is completed in five months. which is not enough for any type of proper and reliable research work.TOOLS OF ANALYSIS It is essential to use a systematic research methodology for the assessment of a project because without the use of a research methodology analysis of any company or organization will not be possible. • Less importance has been given to primary data which is actually the original data and more reliable. In the present analysis mostly secondary data have been used.

Union Bank has huge and varied customer base approximating to 24 millions. Bank is targeting customers from all demographic and economic profiles and introducing products and services to meet their needs. The Bank operates in all the areas including retail lending, personal banking, corporate banking, international banking and investments & treasury. Bank’s lending also caters to the rural and semi urban centers, financing Agriculture and allied activities, rural artisans, micro & medium enterprises in these areas. Bank has opened 198 “Village Knowledge Centres” to provide information to the local community on better agriculture practices, commodities, marketing facilities and financial education. Bank also offers third party products like life and general insurance, mutual funds, on-line trading, wealth management services through tie- up with other FIs. Bank places customer at the centre of all its operations and has transformed the process, people and organizational structure. Bank has initiated a large scale transformation process named “Nav Nirman” to address two critical aspects of growth-instilling the drive of sales & marketing across bank staff and reconfiguration of bank’s business model. The transformation process focuses on four key initiatives a) Retail Asset ( marketing & processing) b) SME marketing & processing) c) Branch sales and services( improving the customer experience in the branch) d) Centralization of key processes

Bank has brought all its branches under Core banking solutions .Union Bank is the first large bank to achieve 100% CBS roll out. Bank has taken lead to establish alternate delivery channels in the form of ATMs, internet banking, phone banking and Mobile Banking. Bank has introduced many technology based services like RTGS, online NEFT free of cost, on line application for products and services and online redressel of grievances.

Diversification
Union Bank in partnership with Bank of India and Dai-Ichi of Japan has formed a subsidiary for distribution of Life insurance products, which has started selling the products. Bank has signed an agreement with Belgian KBC group for setting up a joint venture AMC in India. Union Bank has signed MoU with NSIC for training and setting up Incubation cum Training centers to entrepreneurs in MSME segment. Bank has entered into MoU with NCMSL for financing against warehouse receipts for agri. commodities kept at NCMSL warehouses. Bank has announced opening 100 specialised Business Banking branches across the country to focus exclusively on MSME sector with turn around time of 2 weeks for sanction of proposals. Bank has launched mobile banking facility “Umobile” which facilitates limited transactions and other services through mobile phones. promote first generation

Growth & Performance

Total business of the Bank at the end of Dec’08 reached a level of Rs.1,29,647 crore Rs.92,978 crore as on 31
st

Dec’08 stood at Rs.2,22,625 crore from Rs.99227 crore as on Dec’07 level of

registering a growth of 28.33 % over Dec’07.The bank’s total deposits as on 31st ,an increase of 30.66%. Gross advances of the Bank reached a

Dec’08,registering a growth of 25.22% over Dec’07.The

Capital Adequacy Ratio of the Bank (BASEL I ) is at 12.32% & BASEL II at 13.41 % as on Dec’08.The net interest margin of the B ank increased to 2.97% for the nine months period ended Dec’08.Return on average assets improved f rom 1.31% in Dec’07 to 1.92% in Dec’08(QoQ) indicating more efficient use of Funds. The asset quality recorded a significant improvement with steep reduction in Net NPAs from 0.35% in Dec’07 to 0.14% in Dec’08 and the Gross NPAs from 2.10% to 1.68%.

OUR TRAINING SYSTEM
Seldom has there been a time in which it has been necessary for Organizations to attune Attitudes, upgrade Skills and kindle sparks of Knowledge in their human

The training system of Union Bank has been awarded the prestigious Golden Peacock National Training Award instituted by the Institute of Directors. At Union Bank.force to the extent and with the rapidity required today. Vinstar Limited (AGL Group) of New Zealand. The training is designed. Presently the training structure consists of the Staff College at Bangalore. After a rigorous audit. Those who dominate the market in times to come will be those who are prepared to seize opportunities as they come. based on systems suggested and put in place by our overseas consultants M/s. in February 2001. These systems have been tested and refined by practical application. of the Netherlands. and seven centers in various parts of the country. delivered and assessed. Ask and it shall be Given. We are the only Bank to obtain ISO certification for the training system. TO BE THE BEST COME TO BEST Union bank has one of the best training systems in India. New Delhi for the best training system in the Country. the training facilities offer an admirable approach to these opportunities. the College is awarded ISO 9001 certification (for Design and Development of Customised Training Programs) by Det Norske Veritas. The training experience here goes back to over four decades. In our pursuit of achieving higher standards we have further upgraded our systems and sized up to 'international norms'. .

computer-backed presentation packages. We have got excellent. We invite Organizations to give the enriching experience to the employees. somnolent reverie after a relaxed splash in the swimming pool. air-conditioned learning centers [we call them "channels" of learning]. mental.FROM PHILOSOPHY TO REALITY We have devised an outcome-oriented training process. interactive learning processes. or a stroll down the jogging tracks and exercise stations or a stretch of paddling or rowing on the boat around the natural pond are true tonics for invigoration. where mimicking monkeys and shy sheep are. for the best ambience for learning. group exercises and teambuilding fun in verdurous mango-groves. It is also ensured that this learning is translated into action at the work place. perhaps. to create learning and growing organizations. the only onlookers! Yoga. spiritual and social upgradation of self for an individual and building of teams of performers of outstanding Organizations take place in the most natural way. THE COLLEGE AMBIENCE FOR LEARNING Union Bank Staff College stretching over 36 acres of sylvan setting. salubrious living conditions in hostel rooms with provisions for intellectual and physical games. has been the cynosure of appreciation as an apt option. Yes. If the weather does not encourage outdoor relaxation (unusual in the 'Garden City' of Bangalore!) a . Here physical. Our training programs actually deliver value to the Organization. we have translated yet another cliché into reality. Post course surveys conducted by us have confirmed this. Each and every module is designed so that learning takes place through interaction. on the out skirts of Bangalore city.

are other options.an arm of the Institute of Chartered Financial Analysts of India.International Banking 2.General Banking 5.Marketing and 6.Management and human resource development. All the facilitators have been through an intensive orientation program on adult learning processes drawn up by Vinstar of New Zealand.are experienced bank officers with many years of exposure in the entire gamut of banking. a game of snooker. New York and the Manchester Business School. England.Information Technology 4.workout in the luxury of the Gymnasium. Union Bank is also organizing executive education programs in association with Icfian Business School . Hyderabad. In this stream following programs are offered: .Credit 3."Faculty" or "Trainers" in the common parlance. a solitary tryst with computer games or online learning facilities . Some have also been nurtured with professional training abroad at premiere institutions like Columbia Business School. They are also exposed periodically to updating of skills and awareness in leading institutions in the country. THE PROGRAMS Currently the College is running training programs in the following disciplines: 1. THE FACILITATORS Our 'facilitators' to learning .

The Service edge . Effective Risk Management is critical to any Bank for achieving financial soundness.Treasury and forex management 3. formulated policy documents taking into account the business requirements / best international practices or as per the guidelines of the national supervisor.improving service quality RISK MANAGEMENT 1 Risk is inherent part of Bank’s business. Over a period of year. aligning Risk Management to Bank’s organizational structure and business strategy has become integral in banking business. Credit Risk.. In view of this. Union Bank of India (UBI) has taken various initiatives for strengthening risk management practices.Finance for Non-Finance executives 2. .Software. These policies address the different risk classes viz. Bank has an integrated approach for management of risk and in tune with this.1.project management 4. Market Risk and Operational Risk.

5 Besides. 3 Real Estate Policy. 2 Credit Monitoring Policy. . The issues related to this risk is addressed by. the above Board mandated Policies. Reconciliation of accounts. Information Security. Book-keeping etc. 4 The Operational Risk Management involves framework for management of operational risks faced by the Bank. 4 Credit Risk Management Policy.2 The issues related to Credit Risk are addressed in the Policies stated below. 6 Recovery Policy. Customer complaints. 2 Business Continuity Policy. 1 Loan Policy. Bank has detailed ‘Internal Control Principles’ communicated to the business lines for ensuring adherence to various norms like Anti-Money Laundering. 4 Disclosure Policy. 3 Outsourcing Policy. 3 The Policies and procedures for Market Risks are articulated in the ALM Policy and Treasury Policy. 1 Operational Risk Management Policy. 5 Collateral Risk Management Policy. 7 Treasury Policy.

2 Board has delegated this responsibility to a sub-committee: the Supervisory Committee of Directors on Risk Management & Asset Liability Management.OVER SIGHT MECHANISM 1 Our Board of Directors has the overall responsibility of ensuring that adequate structures. Bank has the following separate committees of top executives and dedicated Risk Management Department: 1 Credit Risk Management Committee (CRMC): This Committee deals with issues relating to credit policies and procedure and manages the credit risk on a Bank-wide basis. policies and procedures are in place for risk management and that they are properly implemented. 3 Operational Risk Management Committee (ORMC): This Committee is responsible for overseeing Bank’s operational risk management policy and process. This is the Apex body / Committee is responsible for supervising the risk management activities of the Bank. 2 Asset Liability Management Committee (ALCO): This Committee is the decision-making unit responsible for balance sheet planning and management from the angle of risk-return perspective including management of market risk. 4 Risk Management Department of the Bank provides support functions to the . 3 Further. Board approves our risk management policies and also sets limits by assessing our risk appetite. skills available for managing risk and our risk bearing capacity.

measuring and monitoring the various risk faced the bank.risk management committees mentioned above through analysis of risks and reporting of risk positions and making recommendations as to the level and degree of risks to be assumed. monitoring and controlling mechanisms. risk acceptance / avoidance levels. 4 Bank has comprehensive credit rating / scoring models being applied in the spheres of retail and non-retail portfolios of the bank. risk tolerance limits. . The department has the responsibility of identifying. assist in developing the policies and verifying the models that are used for risk measurement from time to time. 5 The Credit rating system of the Bank has eight borrower grades for standard accounts and three grades for defaulted borrowers. 3 Standardized Credit Approval Process with well-established methods of appraisal and rating is the pivot of the credit management of the bank. 2 These Polices spell out the target markets. CREDIT RISK 1 Credit Risk Management Policy of the Bank dictates the Credit Risk Strategy. credit risk measurement. preferred levels of diversification and concentration.

Currency. mix of assets and liabilities. periodic industry review. Counter-party and Group exposures are only some of the prudent measures. probability of defaults of borrowers. The important aspect of the Market Risk includes liquidity management. 2 The ALCO is primarily entrusted with the task of market risk management. Portfolio Analysis of retail lending assets. quality and risk. processes and structure. Review of Country. MARKET WRISK 1 Bank has well-established framework for Market Risk management with the Asset Liability Management Policy and the Treasury Policy forming the fulcrum for procedures.6 Proactive credit risk management practices in the form of studies of rating-wise distribution. 7 The current focus is on augmenting the bank’s abilities to quantify risk in a consistent. Further. stipulates liquidity and interest rate risk limits. Bank views the Asset Liability Management exercise as the total balance sheet management with regard to its size. . rating migration. interest rate risk management and the pricing of assets and liabilities. the bank is engaged in mitigating risk exposures. It has a major objective of protecting the bank’s net interest income in the short run and market value of the equity in the long run for enhance ing shareholders wealth. The Committee decides on product pricing. monitors them. which will ensure advanced level of sophistication in the Credit Risk Measurement and Management in the years ahead. articulates Bank’s interest rate view and determines the business strategy of the Bank. reliable and valid fashion.

PV01. In tune with this. Contractual Maturity report etc. Duration. activities. limits fixed and calculation of risk sensitive parameters like VaR. OPERATIONAL RISK 1 Operational Risk. are generated at periodic intervals for ALCO. which meets regularly. Defeasance Period etc. Besides RBI reporting many meaningful analytical reports such as Duration Gap analysis. Bank ensures adequate liquidity at all times through systematic funds planning. Interest Rate Sensitivity. This would entail the bank to move towards enhanced level of sophistication in the years ahead and to capture qualitative and quantitative . Fortnightly Dynamic Statement etc. is emerging as an important component of the enterprise-wide risk management system. Bank prepares various reports such as Structural Liquidity. maintenance of liquid investments and focusing on more stable funding sources.3 Bank has put in place a structured ALM system with 100% coverage of data on both assets and liabilities. Contingency Funding Plan. Bank has adopted a Comprehensive Operational Risk Management Policy. To measure liquidity and interest rate risk. and their analysis. processes and systems. which is intrinsic to the bank in all its material products. 5 The Mid Office group positioned in treasury with independent reporting structure on risk aspects ensure compliance in terms of exposure analysis. Recognizing the importance of Operational Risk Management. Statistical and mathematical models are used to analyze the core and volatile components of assets and liabilities. 4 The objective of liquidity management is to ensure adequate liquidity without affecting the profitability.

compliments the banks ability to control and mitigate risk.e. 3 The Internal audit function of the Bank and the Risk Based Internal Audit.f. The Polices framed and procedures / practices adopted are benchmarked to the best in the industry on a continuous basis and the Bank has a clear intent to reach an advanced level of sophistication in management of risks in the coming year. is as per this laid down road map. which in turn would confer competitive advantage in the Market. Bank’s Preparedness to meet Basel II norms 1. 2. The parallel run. The program in implementation of Risk Management.Bank carried out a comprehensive Self-Assessment exercise spanning all the risk areas and evolved a road map to move towards implementation of Basel II as per RBI’s directions. Organizational Structure. 3 The ever-improving risk management practices in the Bank will result in Bank emerging stronger. Risk measures. risk data compilation and reporting etc. 2 Bank has comprehensive system of internal controls. systems and procedures to monitor and mitigate risk. is currently underway . Bank has also institutionalized new product approval process to identify the risk inherent in the new product and activities.measures of Operational Risk indicators in management of operational risk. 31/03/2008. 4 Bank will implement New Capital Accord w. till implementation.

11 crores but again it is decreased to 15. In the year 2006 it was 29.04 Mar '09 17. 4.1.ANALYSIS AND INTERPRETATION OF DATA 4.20 crores.20 Mar '08 17.11 Mar '10 15.04 crores in 2007 and stays constant in 2009 with 17.1GRAPH SHOWING DIVIDEND PAYOUT RATIO NET PROFIT .85 Mar '07 24.66 Interpretation:The dividend payout ratio net profit is constantly decreasing year by year. This shows that the dividend payout ratio net profit was decreasing during those years. but it has gradually decreased to 17.85 crores while in the year 2009 it has decreased to 24. In crores 29.66 in 2010.1 TABLE SHOWING DIVIDEND PAYOUT RATIO NET PROFIT Particulars Dividend Payout Ratio Net Profit Mar '06 Rs.

4.2 TABLE SHOWING DIVIDEND PAYOUT RATIO CASH PROFIT .Inference: From the above graph it clear shows that the net profit of dividend payout ratio is decreasing gradually.

95 Mar '08 15. In the year 2006 it was 26. This shows that the cash profit dividend payout ratio has only decreased and never increased during these 5 years 4.54 crores in 2010.85 crores in 2009 and again it has just decreased to 14.54 INTERPRETATION : The cash profit dividend payout ratio is also decreasing year by year .47 Mar '07 21.Particulars Dividend Payout Ratio Cash Profit Mar '06 26. it has decreased to 15.85 Mar '10 14.87 Mar '09 15.87 crores in 2008 and stays constant with 15.95 crores in 2007 and again gradually decreases as it was decreased in the previous year .2.47 crores and it has gradually decreased to 21.1 GRAPH SHOWING THE CASH PROFIT OF DIVIDEND PAYOUT RATIO .

3 TABLE SHOWING EARNING RETENTION RATIO Particulars Earning Mar '06 70.97 Mar '09 82.82 Mar '08 82.11 Mar '07 75.35 . 4.Inferen ce: From the above graph it clear shows that the cash profit of dividend payout ratio is decreasing gradually for the following years.80 Mar '10 84.

This shows that earning retention ratio has increased year by year. The increase in earning retention ratio is good for the bank 4.3.97 crores and stays constant in the next year 82.82 crores in 2007 and again gradually increases in the year 2008 with 82.Retention Ratio INTERPRETATION The earning retention ratio was 70.35 in 2010.11 crores during the year 2006 and has increased to 75.80 and again it has just increased to 84.1 GRAPH SHOWING EARNING RETENTION RATIO .

.Inference: From the above graph it clear shows that the earning retention ratio is increasing gradually.

4.49 crores in 2006 .06 Mar '08 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 2009 and in the year 2010 it is just increased to 85.13 Mar '09 84.47 crores … this shows that the cash earning retention ratio is only increased and not decreased during thoese 5 years .49 Mar '07 78. the cash earning retention ratio was 73.47 INTERPRETATION : The cash earning retention ratio is constantly increasing year by year . in the year 2007 it is increased to 84.13 crores in 2008 and remains constant in the next year with 84.07 Mar '10 85.4 TABLE SHOWING CASH EARNING RETENTION RATIO particulars Cash Earning Retention Ratio Mar '06 73.

1 GRAPH SHOWING CASH EARNING RETENTION RATIO Inference: From the above graph it clear shows that the cash earning retention ratio is increasing gradually.4. .4.

4.82 Mar '10 76. in the year 2010 again it is just increased to 76.44 crores in 2006 and in the year 2007 it is just decreased to 91.06 crores .74 crores but only from 2009 it has started increasing .74 Mar '09 74.06 INTERPRETATION : The adjusted cash flow times is constantly decreasing year by year .44 Mar '07 91.38 crores . in the year 2008 it is gradually decreased to 69. the adjusted cash flow times was 97. it is increased to 74.5.82 crores in 2009 .38 Mar '08 69. TABLE SHOWING ADJUSTED CASH FLOW TIMES Particulars AdjustedCash Flow Times Mar '06 97.

4.1 GRAPH SHOWING ADJUSTED CASH FLOW TIMES Inference: From the above graph it is inferred that the adjusted cash flow times were fluctuating during these years .5.

46 Mar '09 34.18 crores by 2010 . it is increase to 34.18 Mar '10 41.4.6 TABLE SHOWING EARNINGS PER SHARE particulars Earnings Per Share Mar '06 13.1 GRAPH SHOWING EARNINGS PER SHARE . The earning per share was 13.74 crores . this shows that the earning per share is only increasing and has never decreased during those 5 year 4.37 Mar '07 16. in the year 2008 it is gradually increased to 27.6.08 INTERPRETATION : The earning per share is constantly increasing year by year.37 crores in 2006 and in the year 2007 it is just increased to 16. in the year 2009 it is increased to 34.74 Mar '08 27.46 crores .18 crores and again it is increased in 2010 as it was increased in previous year .

7 TABLE SHOWING NET CASH FROM OPERATING ACTIVITIES . 4.Inference: From the above graph it clear shows that the earnings per share is increasing gradually.

13 -505.particulars Net Cash From Operating Activities Mar '06 Mar '07 Mar '08 Mar '09 Mar '10 -1124. 4.7.99 1956.07 INTERPRETATION: The netcash from operating activities was -1124.1 GRAPH SHOWING NET CASH FROM OPERATING ACTIVITIES . in the year 2010 it is totally decreased to -505. Later in the year 2007 there was some improvement .13 in 2009 .64 crores but it is gradually increased to 5599. like it is increased to 1956.28 1930.28 crores and there was no big changes in 2007 as it is just decreased to 1930.64 5599. This shows that the bank is facing problem in operating activities.99 crores in the year 2006 and the bank was not in good position during that year.97 crores.

4.8 TABLE SHOWING NET CASH FROM INVESTING ACTTIVIIES .INFERENCE From the above graph it is inferred that the net cash from operating activities of the bank is not good and were fluctuating during these years.

In the year 2008 it is again decreased to -209.8.76 -200.76 crores in 2009 .particulars Net Cash (used in)/from Investing Activities Mar '06 Mar '07 Mar '08 Mar '09 Mar '10 -53.87 -101. 4.33 crores in 2007 .43 INTREPRETATION : The net cash from investing activities was -53.43 crores and this shows that there were no improvement during these 5 years .32 -309.33 -209.1 GRAPH SHOWING NET CASH FROM INVESTING ACTIVITIES .87 crores in 2006 and It is just decreased to -101.32 crores and again it is decreased in the next year as it was decreased in previous year to -309. only in the year 2010 it has increased to -200.

9 TABLE SHOWING NET CASH FROM FINANCING ACTIVITIES .Inference: From the above graph it clearly shows that the net cash from investing activities is decreasing gradually. 4.

particulars Net Cash (used in)/from Financing Activities Mar '06 Mar '07 Mar '08 Mar '09 Mar '10 997.26 crores .41 crores during the year 2006 and was gradually decreased to 180.9.41 180. during the 5 years there were ups and downs in the net cash from financing activities but at last it has only decreased from 997.26 INTERPRETATION The net cash from financing activities was 997.72 crores and again it has just decreased to 497.72 497.98 crores in 2007 and again it has decreased to -49.26 4.92 crores in 2008 but only in 2009 it is increased to 597.92 597.41 to 497.1 GRAPH SHOWING NET CASH FROM FINANCING ACTIVITIES .98 -49.

4.INFERENCE From the above graph it is inferred that the net cash from financing activities is decreasing gradually and were fluctuating during these years.10 TABLE SHOWING NET CASH AND CASH EQUIVALENTS .

45 2035.1 GRAPH SHOWING NET CASH AND CASH EQUIVALENTS .24 crores in the last year 2010.particulars Net (decrease)/increase In Cash and Cash Equivalents Mar '06 Mar '07 Mar '08 Mar '09 Mar '10 -181.93 crores in 2007 and it is just decreased to 1671. This shows that the bank was good in .40 5887.24 INTERPRETATION : The net cash and cash equivalents were increased and decreased in the last 5 years . in the year 2006 it is -181.40 crores but in the next year 2009 it has gradually increased to 5887.45 crores and it has increased to 2035.09 -208.09 cores and finally it is gradually decreased to -208. the middle years and there were no improvement during those 5 years 4.10.93 1671.

4.INFE RENCE From the above graph it is inferred that the net cash and cash equivalents increased and decreased gradually and were fluctuating during these years.11 TABLE SHOWING OPENING CASH AND CASH EQUIVALENTS particulars Mar '06 Mar '07 Mar '08 Mar '09 Mar '10 .

11. in the year 2008 it is increased to 8426.51 8426. 4.93 INTERPRETATION : The opening cash and cash equivalents was 6571.Opening Cash & Cash Equivalents 6571.1 GRAPH SHOWING OPENING CASH AND CASH EQUIVALENTS .44 crores and again it is increased to 10097. This shows that the opening cash and cash equivalents has only increased during those 5 years.93 crores in the year 2010.44 10097.51 crores in 2007 .97 crores in the year 2006 and it is just decreased to 6390.97 6390.84 crores but it is gradually increased to 15984.84 15984.

69 .84 15984.93 15776.Infe rence: From the above graph it clear shows that the opening cash and cash equivalents is increasing gradually 4.52 8426.44 Mar '08 Mar '09 Mar '10 10097.12 TABLE SHOWING CLOSING CASH AND CASH EQUIVALENTS particulars Closing Cash & Cash Mar '06 Mar '07 6390.

93 crores and it is just decreased to 15776. And it is increased to 8426.1 GRAPH SHOWING CLOSING CASH AND CASH EQUIVALENTS .69 crores by the year 2010.12. In the year 2009 it is gradually increased to 15984. This shows that the closing cash and cash equivalents is only increased during these years.44 crores in 2007 and again in the year 2008 it is increased to 10097. 4.52 crores in 2006.84 crores.Equivalents INTERPRETATION : The closing cash and cash equivalents was 6390.

. The dividend payout ratio net profit is constantly decreasing year by year.66 in 2010.11 crores but again it is decreased to 15.Inference: From the above graph it clearly shows that the closing cash and cash equivalents is also increasing gradually FINDINGS 1.04 crores in 2007 and was constant during the year 2009 with 17. but it has gradually decreased to 17.85 crores while in the year 2009 it has decreased to 24. In the year 2006 it was 29.20 crores.

This shows that the dividend payout ratio net profit has only decreased and it has never increased during those years. in the year 2010 again it is just increased to 76. The cash profit dividend payout ratio is also decreasing year by year . 2.13 crores in 2009 and in the year 2010 it is just increased to 85. in the year 2007 it is increased to 84.97 crores and stays constant in the next year 82. The earning retention ratio was 70.74 crores . The cash earning retention ratio is constantly increasing year by year .87 crores in 2008 and stays constant with 15. this shows that the earning per share is only increasing and has never decreased during those 5 years . it is increased to 74.95 crores in 2007 and again gradually decreases as it was decreased in the previous year . the adjusted cash flow times was 97.82 crores in 2007 and again gradually increases in the year 2008 with 82.13 crores and again it is increased in the next year as it is increased in the previous year to 84. 6. in the year 2009 it is increased to 34. it has decreased to 15. In the year 2006 it was 26.47 crores and it has gradually decreased to 21.18 crores by 2010 .82 crores in 2009 . The adjusted cash flow times is constantly decreasing year by year . in the year 2008 it is gradually decreased to 69. the cash earning retention ratio was 73.11 crores during the year 2006 and has increased to 75. This shows that earning retention ratio has increased year by year.38 crores . in the year 2008 it is gradually increased to 27.46 crores .74 crores but only from 2009 it has started increasing .54 crores in 2010.35 in 2010.85 crores in 2009 and again it has just decreased to 14.47 crores … this shows that the cash earning retention ratio is only increased and not decreased during thoese 5 years 5.13 crores in 2008 and remains constant in the next year with 84.80 and again it has just increased to 84.18 crores and again it is increased in 2010 as it was increased in previous year .44 crores in 2006 and in the year 2007 it is just decreased to 91. The earning per share was 13. The increase in earning retention ratio is good for the bank 4.49 crores in 2006 . The earning per share is constantly increasing year by year.06 crores. it is increase to 34.37 crores in 2006 and in the year 2007 it is just increased to 16. This shows that the cash profit dividend payout ratio has only decreased and never increased during 3.

This shows that the bank was good in .93 crores in 2007 and it is just decreased to 1671.33 crores in 2007.41 crores during the year 2006 and was gradually decreased to 180. The net cash from operating activities was -1124. in the year 2010 it is totally decreased to -505.32 crores and again it is decreased in the next year as it was decreased in previous year to -309.7.43 crores and this shows that there were no improvements during these 5 years.The net cash and cash equivalents were increased and decreased in the last 5 years .51 crores in 2007 .93 crores in the year 2010. This shows that the opening cash and cash equivalents has only increased during those 5 years.26 10.The net cash from financing activities was 997.72 crores and again it has just decreased to 497. the middle years and there were no improvement during those 5 years 11.41 to 497. In the year 2008 it is again decreased to -209. .The opening cash and cash equivalents was 6571.40 crores but in the next year 2009 it has gradually increased to 5887.64 crores but it is gradually increased to 5599.24 crores in the last year 2010. during the 5 years there were ups and downs in the net cash from financing activities but at last it has only decreased from 997.76 crores in 2009.26 crores .99 crores in the year 2006 and the bank was not in good position during that year.87 crores in 2006 and It is just decreased to -101.84 crores but it is gradually increased to 15984. This shows that the bank is facing problem in operating activities.98 crores in 2007 and again it has decreased to -49.13 in 2009 .28 crores and there was no big changes in 2007 as it is just decreased to 1930. in the year 2008 it is increased to 8426.45 crores and it has increased to 2035.44 crores and again it is increased to 10097. like it is increased to 1956. The net cash from investing activities was -53. in the year 2006 it is -181. 9. Later in the year 2007 there was some improvement .97 crores. Only in the year 2010 it has increased to -200.92 crores in 2008 but only in 2009 it is increased to 597. 8.97 crores in the year 2006 and it is just decreased to 6390.09 cores and finally it is gradually decreased to -208.

SUGGESTION 1.52 crores in 2006. So. the bank should maintain the EPS so that the holders are retained by the bank. 2. And it is increased to 8426.44 crores in 2007 and again in the year 2008 it is increased to 10097. The EPS is increasing for the bank on yearly basis. In the year 2009 it is gradually increased to 15984.12.The closing cash and cash equivalents was 6390. The dividend payout ratio should be maintained as the shareholders would prefer to invest only if the dividend payout increases. .84 crores.69 crores by the year 2010. This shows that the closing cash and cash equivalents is only increased during these years.93 crores and it is just decreased to 15776.

Net Cash is the cash that is reserved in the bank for any investing or financing activities. so as per that the opening cash is increasing for bank and this should be maintained as this will have a drastic impact on the balance and the bank should also keep up this performance to improve in positive direction. 5. But in this case it is for bank. Closing cash and cash equivalent is the closing balance or net balance available at the end of the year.3. Opening cash and cash equivalent is the initial investment or opening balance of any business. 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. The adjusted cash flow is decreasing for the past few years and this cash flow is considered as operating or working capital of any bank. 4. The closing cash was increasing . 6. The Net cash should increase on a yearly basis and the net cash is the life blood of any company or bank for diversification or expansion of it respectively. The cash should be increasing in any business to maintain it sound and healthy bank.

• Bank must try to improve its Capital Adequacy Ratio.substantially for all the years except for the year 2010 as the balance has pitched down this should be maintained and focused for better closing balance at the end of each year. • Credit worthiness must be checked before giving loans. • Bank must do pre and post monitoring of Loans. The closing balance should be looked for positive increase as it decreased when compared to other years. Refinements may reflect changing expectations about market rates. • Bank must do proper investigation before lending. • Bank must try to reduce its Net and Gross NPA. • Risk Management strategies of Union Bank of India must be revised. changes to .Strategies need to be implemented and refined as the market and requirements change. • Bank must not try to take financial risk CONCLUSIONS The process of financial risk management is an ongoing one.

It was found that Net and Gross NPA of the bank is increasing which is not good for the bank. monitor. In general.the business environment. and refine as needed. Risk management needs to be looked at as an organizational approach. Thus we can say that Bank must improve its risk management strategies Credit Appraisal is a process of appraising the credit worthiness of loan applicants. . • Determine an appropriate level of risk tolerance. In UBI the credit appraisal is done by thorough study of the project which involves Following. as management of risks independently cannot have the desired effect over the long term. report. The funds of depositor’s i. In this project I have analyzed the risk management process of Union Bank of India. • Implement risk management strategy in accordance with policy. • Measure. for example. or changing international political conditions. the process can be summarized as follows: • Identify and prioritize key financial risks. thereby ensure the security for the funds deposited by the depositors. Thus it extremely important for the lender bank to assess the risk associated with credit.e general public are mobilized by means of such advance / investment.

With Sensitivity Analysis the projects capacity to service debts under worsened conditions is determined. provides rating for various parameters like management. thereby determine the credit worthiness of the borrower 5) It is on the basis of the credit risk level. This shows Union Bank of India has sound system for credit appraisal BIBLIOGRAPHY Books :- . collateral securities to be given by the borrower are determined. thereby ensuring that project will generate sufficient surplus to repay the lan 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.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. financial. Credit rating. market and so.

New Century Publications. New Delhi. New Delhi(2003). By Kothari C.• “Management Accounting-Principles and Practice. First Edition. New Delhi.P. Himalaya Publisher’s. New Delh By Websites:• www. Third Revised Edition. New Delhi(2002). & Narang. Kalyani Publisher’s.N Thirteen Edition.By Jain. Gupta Sunita. • “Research Methodology-Methods & Techniques”. By Sharma R. V.com • www.K Annual Publications. • “Management of Working Capital”. Kalyani Publisher’s. By Bhalla First Edition. Second By • “Cost and Financial Analysis”. • “Management Accounting and Financial Control”. New Delhi. . New Century Publications.L. • “Cost and Financial Analysis”.unionbankofindia.R Edition. Sultan Chand & Sons.By Jawaharlal Third Edition.”. New Delhi(2003).com . .K. MN Arora First Edition. • “Management Accounting”. Vishwa Prakashan Delhi (1990). By Maheshwari S. • “Financial Management and Policy”.S.scribd.K & Gupta Shashi K Eighth Edition.

ANNEXUES .

97 Closing Cash & Cash Equivalents 6390.00 -1124.99 Net Cash (used in)/from Investing Activities -53.41 -181.45 Opening Cash & Cash Equivalents 6571.52 BALANCE SHEET AS ON 31st MARCH 2006 .87 Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents 997.CASH FLOW STATEMENT FOR THE YEAR 2006 PARTICULARS Net Profit Before Tax Net Cash From Operating Activities AMOUNT 0.

04 PROFIT AND LOSS ACCOUNT FOR THE YEAR 2006 .387.27 2.03 587.003. 505.558.627.30 Capital Work In Progress 3.40 Other Assets 78.587.36 Gross Block 465.86 15.12 Money at Call 0.12 ASSETS AMOUNT Rs 4.17 794.379.068.917.04 Total Assets Total Debt Other Liabilities & Provisions Total Liabilities 89.974.56 2.50 Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Cash & Balances with RBI Balance with Banks.16 Net Block 74.24 53.00 Advances 0.96 25.18 89.126.LIABILITIES AMOUNT Rs 505.094.499.382.68 Accumulated Depreciation 4.65 1.126.00 Investments 3.70 6.

59 0.18 0.42 866.863.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 5.01 201.71 625.80 13.488.00 176.00 1.37 35.13 956.99 716.79 24.558.05 5.17 0.489.00 40.55 716.04 -0.15 766.93 0.62 675.17 CASH FLOW STATEMENT FOR THE YEAR 2007 .91 414.81 3.02 514.23 86.813.10 6.00 81.

44 .51 8426.98 2035.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 Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents AMOUNT 0.93 6390.00 1956.33 180.28 -101.

57 2.24 Cash & Balances with RBI Balance with Banks.981.72 2.00 Advances 0.88 Total Assets 102.87 Net Block 85.28 3.59 Accumulated Depreciation 5.395.215.26 102.77 1.21 664.487.49 822.12 ASSETS AMOUNT Rs 5.88 BALANCE SHEET AS ON 31st MARCH 2007 . 505.00 Investments 4.677.508.LIABILITIES Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings AMOUNT Rs 505.43 27.22 Capital Work In Progress 4.092.228.677.058.917.87 62.12 Money at Call 0.16 Gross Block 456.189.75 8.386.180.53 Other Assets Total Debt Other Liabilities & Provisions Total Liabilities 89.

59 845.80 620.37 1.00 93.00 1.30 0.80 16.92 980.805.71 428.93 .00 176.382.16 86.79 27.591.223.80 8.206.00 0.98 4.55 845.87 211.71 7.96 873.74 35.59 0.94 0.48 845.378.99 204.18 841.PROFIT AND LOSS ACCOUNT FOR THE YEAR 2007 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 7.39 0.

32 -49.84 .00 Net Cash From Operating Activities 1930.92 Net (decrease)/increase In Cash and Cash Equivalents 1671.64 Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities -209.44 Closing Cash & Cash Equivalents 10097.40 Opening Cash & Cash Equivalents 8426.CASH FLOW STATEMENT FOR THE YEAR 2008 PARTICULARS Net Profit Before Tax AMOUNT 0.

71 Net Block 103.348.62 2.83 4.12 ASSETS AMOUNT RS 9.858.14 8.195.19 Gross Block 1.40 Accumulated Depreciation 7.49 Other Assets 108.106.724.760.347.937.10 74.45 741.604.00 Investments 5. 505.822.BALANCE SHEET AS ON 31st MARCH 2008 LIABILITIES AMOUNT Rs 505.26 .57 3.073.073.65 Capital Work In Progress 4.118.29 33.28 Total Assets Total Debt Other Liabilities & Provisions Total Liabilities 124.454.12 Money at Call 0.43 124.10 Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Cash & Balances with RBI Balance with Banks.00 Advances 0.619.63 2.74 643.

97 6.03 0.447.360.94 1.00 202.PROFIT AND LOSS ACCOUNT FOR THE YEAR 2008 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 9.34 27.00 2.00 111.46 40.95 845.39 0.05 34.00 0.038.65 1.20 753.34 101.61 236.232.51 .292.82 1.67 10.679.51 0.79 9.387.68 946.387.30 1.48 1.178.86 289.15 0.33 860.387.

93 .76 597.CASH FLOW STATEMENT FOR THE YEAR 2009 PARTICULARS Net Profit Before Tax AMOUNT 0.13 Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities -309.84 Closing Cash & Cash Equivalents 15984.00 Net Cash From Operating Activities 5599.09 Opening Cash & Cash Equivalents 10097.72 Net (decrease)/increase In Cash and Cash Equivalents 5887.

65 893.647.740.534.05 6.88 96.220.00 Investments 6.86 3.43 160.26 Gross Block 1.98 Accumulated Depreciation 8.996.35 2.975.992.12 ASSETS AMOUNT RS 8.BALANCE SHEET AS ON 31st MARCH 2009 LIABILITIES Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings AMOUNT RS 505.23 42.83 Capital Work In Progress 3.36 Net Block 138.587.327.73 9.00 Advances 0. 505.992.90 Other Assets 142.51 .52 Total Assets Total Debt Other Liabilities & Provisions Total Liabilities 160.884.12 Money at Call 0.23 Cash & Balances with RBI Balance with Banks.685.96 3.549.702.30 7.975.124.

58 1.08 0.48 0.PROFIT AND LOSS ACCOUNT FOR THE YEAR 2009 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 11.93 8.00 252.171.760.00 295.18 50.55 0.00 2.727.92 34.65 1.37 1.726.54 136.83 1.81 1.89 259.727.59 808.97 11.00 139.075.20 .645.371.889.56 42.55 13.00 0.66 1.152.20 0.36 1.198.482.082.38 1.

24 Opening Cash & Cash Equivalents 15984.43 497.CASH FLOW STATEMENT FOR THE YEAR 2010 PARTICULARS Net Profit Before Tax AMOUNT 0.26 Net (decrease)/increase In Cash and Cash Equivalents -208.07 Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities -200.93 Closing Cash & Cash Equivalents 15776.69 .00 Net Cash From Operating Activities -505.

97 Accumulated Depreciation 10.78 Net Block 170.84 Total Assets Total Debt Other Liabilities & Provisions Total Liabilities 195.315.396.48 9.483.255.01 195.98 1.31 Other Assets 179.308.89 Cash & Balances with RBI Balance with Banks.05 5.101.85 PROFIT AND LOSS ACCOUNT FOR THE YEAR 2010 .423.12 Money at Call 0.403.53 3.00 Investments 8.50 2.615. 505.00 Advances 0.295.74 Capital Work In Progress 9.215.302.96 3.24 3.161.69 Gross Block 1.039.12 ASSETS AMOUNT Rs 12.468.BALANCE SHEET AS ON 31st MARCH 2010 LIABILITIES Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings AMOUNT Rs 505.360.45 119.161.30 54.

00 277.92 0.63 2.354.277.83 2.50 2.37 1.206.202.14 1.99 1.075.02 1.21 41.27 1.351.76 885.57 160.74 15.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 13.00 0.75 0.074.974.225.81 47.00 3.53 0.302.075.110.68 1.09 572.177.01 325.42 9.08 55.00 174.75 .47 13.