Vijaya Bank Single File

Sree Rayalaseema Alkalies and Allied Chemicals Ltd.
CHAPTER-I
INTRODUCTION TO FINANCE
DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 1

Sree Rayalaseema Alkalies and Allied Chemicals Ltd.,
INTRODUCTION
Introduction: Finance is regarded as an enterprise. This is because in the modern money oriented
economy lifeblood of finance is one of the basic foundations of all kinds of economic activities. It is
the master key, which provides access to all sources for being employed in manufacturing activities. It
has been rightly said that business needs money to make more money. However, it also true that money
begets more money only when it is properly managed; therefore efficient management of every
business enterprise is closely linked with efficient management of its finance.
Meaning:
Finance is the application of skills for manipulation use and control of money. The term
business finance kindly involves rising of funds and their effective utilization keeping in view the
overall objectives of the firm.
Definition:
Business finance can be broadly defined as the activity concerned with planning, rising,
controlling and administrating of funds used in the business.
-Guthmann & Daugall
Financial Management is the Operational Activity of a business that is responsible for
obtaining and effectively utilizing the funds necessary for efficient operation.
- Joseph Massie

SCOPE OF THE SUBJECT

1. Estimating the Requirement of Funds: Businesses make forecast on funds needed in both short run
and long run, hence, they can improve the efficiency of funding. The estimation is based on the budget
e.g. sales budget, production budget
2. Determining the Capital structure: Capital structure is how a firm finances its overall operations and
growth by using different sources of funds. Once the requirement of funds has estimated, the financial
manager should decide the mix of debt and equity and also types of debt.
3. Investment Fund: A good investment plan can bring businesses huge returns.
OBJECTIVES OF THE SUBJECT:
1. profit maximization occurs when marginal cost is equal to marginal revenue. This is the
main objective of Financial Management.
2. Wealth maximization means maximization of shareholders' wealth. It is an advanced goal

compared to profit maximization.
3. Survival of company is an important consideration when the financial manager makes any
financial decisions. One incorrect decision may lead company to be bankrupt.
4. Maintaining proper cash flow is a short run objective of financial management. It is
necessary for operations to pay the day-to-day expenses e.g. raw material, electricity bills,
wages, rent etc. A good cash flow ensures the survival of company.
5. Minimization on capital cost in financial management can help operations gain more profit.

GOALS OF STUDY
1. Gross profit margin

2. Operating profit margin
3. Net profit margin
4. Minimize the costs
5. Maximize market share
ADVANTAGES

CHAPTER-II
INDUSTRIAL PROFILE
&
COMPANY PROFILE

COMPANY PROFILE
T.G. Venkatesh T.G. Bharath

Chairman & Managing Director Chairman & Managing Director
Sree Rayalaseema Alkalies & Allied Sree Rayalaseema Hi-Strength
Chemicals Ltd. Hypo Ltd.
CHAIRMAN'S FOREWORD
The new age enterprise has thrown open the doors to a world of seamless opportunities. Time and space barriers no longer
hold any significance. Thanks to the pervasiveness of IT and the advent of the Internet, there's never been more to learn or
to utilize or to provide. Knowledge, and its acquisition, is at hand.
It is indeed heartening that India has kept pace with the sweeping charges in the global economy. Throwing open its doors
to globalization has meant the advent of multinational corporate giants. The Indian economy is already gearing itself, both
qualitatively and quantitatively, to put up a fierce competition. Given our manpower and natural resources base there is
little that can stop us from emerging winners. At TGV we aim to harness this power to bring our clients. Customers and
associates closer to the line of satisfaction, without limits and restrictions.
Having proved our credentials as quality service / product providers in fields as varied as chemicals and hospitality, finance
and healthcare, real estate and IT, we are all set to make our mark in the Power sector too. The success of our initial forays
in this direction have invested us with the confidence to undertake projects of greater dimension and magnitude in the near
future.
Sree Rayalaseema Alkalies and Allied Chemicals Ltd. is the flagship company of the TGV Group It is
the leading producer of Chlor-Alkali products and also manufactures Castor Derivatives and Fatty
Acids. Besides operating a commercial Power Project of 28MW.
TECHNOLOGY
Sree Rayalaseema Alkalies and Allied Chemicals has the unique distinction of being the pioneer of the
Bipolar Membrane Cell Technology from Uttdenona spa, Italy, in India.
The company uses only state-of-the-art equipment and up-to- the minute technologies including the
Costruzioni Meccaniche Bernardini (CMB) technology from Italy for its fatty acids division.
The captive power plant used, assures uninterrupted and cost-effective power supply to the
manufacturing plant.
QUALITY
The ISO 9001, ISO 14001 and OSHAS 18001 certifications talk for the companys obsession with
quality, Environment and occupational health. The international class quality of the companys produce
and the intricate marketing network spanning all continents have found for it an assured place in the
export markets ever since its inception.
EXPORT
A Consistent overseas demand for its products has made the company a recognized export house today.
Canada, China, Dubai, France, Georgia, Germany, Greece, Iran, Italy, Japan, Jordan, Kenya, Korea,
Kuwait, Malaysia, Netherlands, Poland, Russia, Singapore, Spain, Sri Lanka, Saudi Arabia, Thailand,
USA, UK and a host of other countries prefer Sree Rayalaseema Alkalies and Allied Chemicals Ltd.
over other players in the field.
Unnecessary interference by Board members in the day-to day affairs

Vagaries of nature
Growing trend of inflation
Lack of knowledge about the bank, in the general public
No police protection for tacking the hard core defaulters
political interference on day-today affairs of the bank

product Range and Applications

Californium Hydrochloride
Mono chloroacetic Acid
Chloro Sulphonic Acid
Ole-um 23% and 65%
Bromine
Battery and Commercial grades Sulphuric acid
Calicum hypochlorite is used extensively in agriculture, textile, leather, paper and Sugar
Industries.Stable Bleaching powder has taker in sanitization, watertreatment, and pesticide makers.
ChloroSulphonic Acid Caters to intermediaries, soaps, and detergents, eplosives and others use oleum.
Bromine, industries including petrochemicals, dyeintermediaties photography, pesticides
Pharamaceuticals,bleaching of paper,pulp and others. Sulphric Acid finds widespread usage in
sulphonation, fertilizer, as an intermediary in Pharmaceutical industry amongst othetrs.
Production Capacity:
Product Installed Capacity
(Toss per annum)
Calcium Hypo chlorite
Stable Bleaching powder

Monochloro Acetic Acid
Sulphuric Acid

Chloro Sulphonic Acid
Bromine
CHAPTER-III
REVIEW OF LITERATURE
Roma Mitra, Shankar Ravi (2008), A stable and efficient banking sector is an essential
precondition to increase the economic level of a country. This paper tries to model and evaluate the
efficiency of 50 Indian banks. The Inefficiency can be analyzed and quantified for every evaluated unit.
The aim of this paper is to estimate and Compare efficiency of the banking sector in India. The analysis
is supposed to verify or reject the hypothesis whether the banking sector fulfils its intermediation
function sufficiently to compete with the global players. The results are insightful to the financial
policy planner as it identifies priority areas for different banks, which can improve the performance.
This paper evaluates the performance of Banking Sectors in India.
B.Satish Kumar (2008), in his article on an evaluation of the financial performance of Indian
private sector banks wrote Private sector banks play an important role in development of Indian
economy. After liberalization the banking industry underwent major changes. The economic reforms
totally have changed the banking sector. RBI permitted new banks to be started in the private sector as

per the recommendation of Narashiman committee. The Indian banking industry was dominated by
public sector banks. But now the situations have changed new
Generation banks with use of technology and professional management has gained a reasonable
position in the banking industry.
Brijesh K. Saho, Anandeep Singh (2007), this paper attempts to examine, the performance trends
of the Indian commercial banks for the period: 1997-98 - 2004-05. Outboard empirical findings are
indicative in many ways First, the increasing average annual trends in technical efficiency for all
ownership groups indicate an affirmative gesture about the effect of the reform process on the
performance of the Indian banking sector. Second, the higher cost efficiency accrual of private banks
ove Nationalized banks indicate that nationalized banks though old, do not reflect their learning
experience in their cost
minimizing behavior due to X-inefficiency factor Arising from government ownership. This finding
also highlights the possible stronger disciplining role played by the capital market indicating a strong
link between market for corporate control and efficiency of private enterprise assumed by property
right hypothesis. And, finally concerning the scale elasticity behavior, the technology and market-based
results differ significantly supporting.
Petya Koeva (July 2003), in his study on The Performance of Indian Banks.
During Financial Liberalization states that new empirical evidence on the impact of financial
liberalization on the performance of Indian commercial banks. The analysis focuses on examining the
behavior and determinants of bank intermediation costs and profitability during the liberalization
period. The empirical results suggest that ownership type has a significant effect on some Performance
indicators and that the observed increase in competition during financial liberalization has been
associated with lower intermediation costs and Profitability of the Indian banks.
General objectives:

General objectives of financial management are as follows.
1. Balanced asset structure
2. Liquidity
3. Judicious planning of funds
4. Efficiency
5. Financial discipline
Functions of financial management

Functions of financial management are as follows:
1. Funds requirement decision
2. Financing decision
3. Investment decision
4. Dividend decision
These decisions will also be formed as functions obtaining the scope of financial management
are being discussed below:
1. Funds requirement decision:

This is the most important function performed or decision taken by the finance manager of
careful estimate has to be made about the total funds required by the enterprise taking into account both
the price. Taking into account both the fixed and working capital requirements. This is done by
forecasting the physical activities of the enterprise.
2. Financing decision:
Provision of funds required at the proper time is one of the primary tasks of the financial
manager. Every business activity requires funds and hence every financial manager is confronted with

this problem. He has to identify the sources from which the funds can be raised, the amount that can be
raised from each source and the cast and other consequences involved.
1. Investment decision:
This comprises decision relating to investment in both capital and current assets. The finance
manager has to evaluate different capital investment proposals and select the best keeping in view of
the overall objective of the enterprise. This would involve fixing the criteria for evaluating different
investment proposals. Fixing priorities, committing funds for then etc,
2. Dividend decision:
It involves the determination of the percentage of profits earned by the enterprise which is to be
paid to its shareholders. Theoretically this decision should depend on whether the company or
shareholders can make a more profitable use of the funds. However, in practice a number of other
factors like the market price of share, the trend of earnings, the tax position of the shareholders etc,
Play an important role in the determination of dividend policy of a business enterprise.
Apart from the above main functions the following subsidiary functions are also performed by
financial manager.
1. To ensure supply of funds to all parts of the organization.

2. Evaluation of the financial manager.
3. To negotiate with bankers, financial institutions and other suppliers of credit.
4. To kept track of stock exchange quotations and behavior of stock market prices.
Financial performance:
Financial performance is known by applying financial techniques like comparative
balance sheet analysis, ratio analysis, trend analysis, cost volume and profit analysis, common size
statements. Banking occupies one of the most important positions in the modern economic world. It is
necessary for trade and industries: hence it is one of the great agencies of commerce. Although banking
is one from or another has been existence from very early times. Every bank does two main activities
called borrowing and lending of funds. Financial performance is the study related to the efficiency of
the banker in productive utilization of funds of public by contains growth and progress. Bankers make
the profit by earning the margin between the rates of interest and lend at high rates of interest there by
earn profit.
Analysis of financial statements:

Financial statement refers to the two statements, which are prepared by a business concern at
the end of the year. These are as follows:
1. Income statements or trading and profit and loss account which is prepared by a concern in
order to know the profit earned and loss sustained during a specific period.
2. Position statement or balance sheet which is prepared by a business concern on a particular
date in order to know its financial position.
Meaning:
Analysis is the process of critically examining in detail accounting information given in the financial
statements.
Analyzing financial statement is a process of evaluating relationship between component parts of
financial statements to obtain a better understanding of firms position and performance.
Importance of Financial Statements:

The importance given in the financial statement is very useful to a number of parties as given below :
1. Owners:
The owners provide funds for the operations of a business and they want to know whether their
funds are being properly utilized or not. The financial statement prepared from time to time their
activity.

2. Creditors:
Creditors want to know the financial statement/position of a concern before giving loans or
granting credit. The financial statement helps them in judging such position.
3. Investors:
Prospective investors who want to invest in a firm would like to make an analysis of the
financial statement of that firm to know how safe proposed investment will be.
4. Employees:
Employees are interested in the financial position of a concern they serve particularly when
payment of bonus depends upon size of the profits earned. They would like to know that the bonus
being become interested in the preparation of correct profit and loss account.
5. Government:
Central and state governments are interested in the financial statement because they reflect the earnings
for a particular period of purposes of taxation. More over these financial statements are used for
compiling statistics concerning business which in turn help in compiling national occurrence.
6. Research scholars:
The financial statements being a mirror of the financial position of firms are of value to the
research scholar who wants to make a study into financial operations of a particular
firm.
7. Consumer:
Consumers are interested in the establishment of good accounting control so that the cost
of production may be reduced with relevant reduction of the prices of good they buy.
8. Managers:

Management is the art of getting thing done through the others this requires that the
subordinates are doing work properly. Financial statements are in aid in this respect because they serve
the manager is appraising the performance of the subordinates. Actual results achieved by the employee
can be measured against the budgeted performance they were expected to achieve and remedial actions
can be taken if the performance is not up to the mark.
CHAPTER-IV
DATA ANALYSIS
AND
INTERPRETATION
Following are the some important techniques of and interpretation
1. Comparative financial statement or analysis.

Strongly
2. Particulars
Common measurement statement
Strongly Agree or analysis
Agree Cant say Disagree Total
Disagree
3. Trends percentages analysis.
4. Funds flow statements or analysis.
No.of
17 5 2 0 1 25
5. Employees
Cash flow statements or analysis
6. Ratio analysis
Percentage 68 20 8 0 4 100
7. Cost volume profit analysis.

1. Comparative financial statement or analysis:
Financial statements are statement of the financial position different period of the
time elements of financial position are shown in a comparative form. So as to give an idea of
financial position two or more ideas. The comparative statements make show
1. Absolute figures (rupee amount)
2. Changes in absolute figures (that is increase or decrease)
3. Absolute data in terms of percentage.
4. Increase or decrease in percentage.

2. Common measurement statements or analysis:

Common size statement is the statement which facilitates to compare the financial
statement of not only one company but also of different companies and of financial statements
prepared over a time period. As the ratios or percentages and particular item, all the items of the
statement are prepared. A common size statement balance shows the percentages of all assets
and liabilities. Total assets taken as 100 and different assets are expressed ass a percentage of
the total. Similarly to liabilities and sales.
3. Trend percentage analysis:

The tendency of a variable over period of time is known as trend. The trend analysis enables to
know the changes in the financial position and operational efficiency between the time period
chosen.
Procedure for calculating trends
a) One year is taken as base year generally the first year.
b) The figure of the base year taken as 100
c) Trend percentages are calculated relation to base year.
4. Fund flow statements or analysis:

Fund flow statements are a statement which indicates various means which the funds have
been obtained during a period the way to which these funds have the way used during that
period. The term funds used here means working capital that is excess of current assets over
current liabilities.
Steps involved in the preparation of fund flow statement are as follows
i. Preparation of schedule of changes in working capital.
ii. Preparation of necessary ledger accounts.

iii. Preparation profit and loss adjustment account to ascertain the fund from
operation.
iv. Preparation of fund flow statement.
5. Cash flow statements or analysis:

Cash flow statement is a statement which describes the sources and out flows use of cash
and cash equivalents in an enterprises during a specified period of time.
According to accounting standards 3 the cash flow statement should be classified into three
activities
a) Cash flow from operating activity
b) Cash flow from investing activity
c) Cash flow from financing activity
6. Ratio analysis:
Ratio analysis is one of the powerful tools of financial analysis. A ratio can be defined as
the indicated quotient of two mathematical expression and as the relationship between two or
more things a ratio can be used as a yardstick for evaluating the financial position and
performance of a concern because the absolute accounting data cannot provide meaningful
understanding and interpretation. A ratio is the relationship between two accounting items
expressed mathematically.
Ratio analysis helps he analysis to make quantitative judgment with regard to concern financial
position and performance.
Steps involved in the ratio analysis
1. Selection of relevant data from the financial statements depending upon the
objective of the analysis.
2. Calculations of appropriate ratios from the above data.
3. Interpretation of the ratios.

4. Comparison of the calculated ratios with the ratios of the same firm in the past (or) the
ratios, developed from projected financial statements on the ratios of some other firms (or) the
comparison with ratios of the industry to which the firm belongs.
Interpretation of the ratios in the following ways:

1. Single absolute ratio
2. Group of the ratio.
3. Historical comparison of the ratios
4. Projected the ratios based on the standards.
5. Inter period comparison of the ratio in particular firms.
Importance/ Advantages of Ratio analysis:
Following are the main important advantages/ importance of Ratio analysis:
1. Useful in financial position analysis.
2. Useful in simplifying accounting figures.
3. Useful in forecasting purposes.
4. Useful in assessing the operational efficiency.
5. Useful in locating the weak spots of the business.
6. Useful in comparison of performance.
7. Utility to the creditors.
Disadvantages of the ratios:

1. Limited use of a single ratio.
2. Lack of adequate standards.
3. Inherent limitation of accounting
4. Change of accounting procedure.
5. Window dressing.
6. Price level changes
7. Cost volume profit analysis

Cost volume profit analysis is a technique for studying the relationship between cost,
volume and profit. Profits of an undertaking depend upon a large number of factors. But the
most important of these factors are the cost of manufacture, volume of sales and the selling
prices of the products. The cost volume profit relationship is of immense utility to management
as it assists in profit planning, cost control and decision making.

DATA ANALYSIS AND INTERPRETATION

Table No. =01
Table Showing the Net Profit
Years Amount(in crores) %(percentage)
2012-2013 127 -
2013-2014 289 127.55
2014-2015 356 180.0

2015-2016 208 116.53
Formula: 289 - 127 = 162/127*100 = 127.55
Chart No. -01

Chart showing net profit

400
350
300
250
Amouni
200
%
150
100
50
0
2012-2013 2013-2014 2014-2015 2015-2016
Interpretation:
From the above table No.01 shows that the net profit is amount Rs.127 crores in the year 2012-
13. Rs.289 crores in the year 2013-14 and Rs.356 crores in the year 2014-2015 and Rs. 208 crores in
the year 2015-16. Compare to last two years profit is declined.

Table No. -02
Table showing the interest earned
Years Amount(in crores) % percentage

2012-2013 2312 -
2013-2014 2823 22.10
2014-2015 3983 50.17
2015-2016 5238 54.28
Formula: 2823- 2312 = 511/2312 * 100 = 22.10
Graph No. -02

Graph showing the interest earned
6000
5000
4000
3000 AMT
%
2000
1000
0
2012-2013 2013-2014 2014-2015 2015-2016
Interpretation:
There has been continuous increase in the interest earned of the bank. The total interest earned
from Rs.2312 crores to Rs.5238 crores during the years 2015 to 2016. There has been a good growth in
the interest earned of the bank which is very good for the bank.


Table No - 03
Table showing the total income
2012-2013 2681 -
2013-2014 3160 14.13
2014-2015 4515 50.54

2015-2016 5937 53.03
Graph No. =03
Graph showing the total income
100%
90%
80%
70%
60%
%
50%
AMT
40%
30%
20%
10%
0%
2012-2013 2013-2014 2014-2015 2015-2016
Interpretation:

From the above table No.03 show that the total income is amount of Rs.2681 crores in the year
2012-13 Rs3160 crores in the year 2013-14 and Rs4515 crores in the year 2014-15 and Rs.5937/-
crores 2015-16.
It shows that 53.03% increase in the year 2014-2015 compare to year 2012-13
Table No. =04

Table showing the employee cost
2012-2013 379 -
392 3.43
2013-2014
2014-2015 405 3.43
2015-2016 597 50.65
Graph No. =04
Graph showing the employee cost
600
500
400 AMT
300 %
200
100 %
0 AMT
2012-2013 2013-2014 2014-2015 2015-2016

Interpretation:
From the above table shows that the employee cost is amount Rs.379 crores in the year
2012-13. In the year 2013-14 Rs.392 crores Rs.405 crores in the year 2014-15 Rs.597 crores in
the year 2015-16.
It shows that 50.65% increase in the year 2015 compare to year 2015-16
Table No. =05

Table showing the miscellaneous expenses

2012-2013 570 -
2013-2014 653 14.56
2014-2015 726 27.36
2015-2016 797 39.82
Graph No= 05
Graph showing the miscellaneous expenses

300
250
200
150
100
Interest earned in percentage
50 AMT
0 %
Years
Interpretation:
The above table No.05 illustrates the miscellaneous expenses of the bank. Rs.570 crores
in the year 2012-13, increased to 653 crores in 2013-14, again increased to 726 crores in 2014-
15, 797 crores in 2015-16.
The percentage has been fluctuating during the last four years.
Table No. =06
Table showing the operating expenses
2012-2013 750 -
2013-2014 771 2.8
2014-2015 801 4
2015-2016 1059 34.4
Graph No. =06

Graph showing the operating expenses
1200
1000
800
%
600
Amout
400
200
0
2012-2013 2013-2014 2014-2015 2015-2016
Interpretation:
From the above table No. 06 shows that operating expenses of the bank. In 2012-13 it is
771, in 2013-14 it is 801 and in 2014-15 it is 1059 compared to base year 2015-16.
Table No. =07

Table showing the current ratios
Years
Current assets(in Current liabilities (in %
crores) crores) Current ratios
2012-2013 1614 1487 1.08
2013-2014 2834 1640 1.72
2014-2015 5070 2658 1.90

2015-2016 6096 3854 1.58
Graph No. =07

Graph showing the current ratio
7000
6000
5000
4000 CA
CL
3000
CR
2000
1000
0
2012-2013 2013-2014 2014-2015 2015-2016
Interpretation:
From the above table No.07 shows that current ratio of bank. The bank has current ratio 1.08 in
2012-13, 1.72 in 2013-14 and 1.90 in 2014-15 and 1.58 in 2015-16.
Current ratio of the bank is satisfactory it is within the acceptable range. It shows that liquidity position
of a bank is very good.
Debt equity ratio
It measures the extent of equity covering the debt. This ratio is calculated to measure the
relative proportions of outsiders funds and shareholders funds invested in the company.
It is calculated as follows
Debt equity = Long-term debts

Shareholders fund
Debt indicates the money borrowed from outsiders, through the debentures and bonds on which
the interest is paid regularly.
Share holder fund indicates the owners fund they will get the dividend or profits. The
two basic components of ratio are outsiders funds. External equities & share holders funds.
The outsiders funds include all debts/ liabilities to outsiders, whether long term or short term or
whether in the form of debentures bonds, mortgage or bill.

Table No. =08

Table showing the debt equity ratio
Long term Share holders

Years Debt equity ratio
debts(in crores) fund(in crores)
2012-2013 28225 434 65.03
2013-2014 37803 434 87.10
2014-2015 49871 434 114.91
2015-2016 55156 434 127.08
Graph No. =08

Graph showing the debt equity ratio
60000
50000
40000
LTD
30000 SHF
DER
20000
10000
0
2011-2012 2012-2013 2013-2014 2014-2015
Interpretation:

It can be analyzed from the data collected from the bank; the growth of the bank is
increasing from the year 2012-2016. In the year 2012-13, the debit equity ratio is 65.03. In the
year 2013-14 87.10, in the year 2014-15 it is 114.91 and in the year 2015-16 it is 127.08.
It can be inferred that the total debt of Vijaya Bank is increasing constantly while the
equity has remained constant. But the ratio of debt and equity is more than standard debt equity
ratio.
Return on total assets ratio

This ratio is calculated to measure the profit after tax against the amount invested in
total assets to as certain whether assets are being utilized property or not.
This ratio can be calculated as follows:
Return on total assets = net profit after tax 100
total assets
Return on shareholders investment

Return on shareholders investment known as ROI or return on shareholder/properties
funds is the relationship between net profits (after interest &tax) and the proprietors funds.
Return on share holders investment = net profit (after tax & interest)
Shareholders fund
The two basic components of this ratio are net profits and shareholders funds. Shareholders
funds include equity share capital, preference share capital free reserves such as share premium,
revenue reserve, capital reserve, retained earnings &surplus.
Thus net profits are arrived at after deducting interest on long term borrowing and income tax,
because those will be only profits available for shareholders.
Table No. =09

Table showing the return on shareholders investment
Net profit (Rs. In Return on

Shareholders funds
crores) shareholder
Years (Rs. In crores)
investment in %
2012-2013 127 434 0.29
2013-2014 289 434 0.66
2014-2015 356 434 0.82
2015-2016 207 433 0.47
Graph No. =09

Graph showing the return on shareholders investment

NET profit
Return on share holders ratio NET profit
Years
Interpretation:
From the above table No.10 shows that the return on share holder investment. The highest rate
of return on investment in the year 2013-14-0.66% in the year 2012-13. 0.29% in the year 2014-
15. Decrease in the rate of return is 0.47 in 2015-16 because of decrease in net profit.
Net profit to net worth

The ratio of net profits to net worth shows worth of the company in coming profits,
higher the profits higher the worth and vice versa, and it increases the reputation of the
company.
This ratio can be calculated as follows = net profit 100
Net worth

Table No. =10
Table showing the net profit to net worth
Net profit (Rs. Net worth (Rs. In

Years Current ratio
In crores) crores)
2012-2013 127 1669 7.60
2013-2014 289 1896 15.46

2014-2015 356 2459 14.47
2015-2016 207 3149 6.57
Graph No. =10

Graph showing the net profit to net worth
Return on share holders ratio
Return on share holders

Return on share holders ratio ratio
2012-2013
Years
Interpretation:
From the above table we can observe the net profit to net worth. It was fluctuating year by year
in the 2012-13 it was 1669. It was increased to 1896 in the year 2013-14. It was decreased to2459 in
the year 2014-15.it has been decreased to 3149 in the year 2015-16.
Solvency ratio
It is also known that debt ratio it is a differences of 100 and proprietary ratio. This ratio is found
out between total assets and external liabilities of the company. External liabilities mean all long period
and short period liabilities.
This ratio can be calculated as follows
Solvency ratio = outsiders liabilities 100
Total asset

Table No. =11

Table showing the Solvency ratio
Outsiders
Total asset
Years liabilities (Rs. In Current ratio
(Rs. In crores)
crores)
2012-2013 28658 31534 90.87
2013-2014 38236 42357 90.27
2014-2015 50304 56184 89.53
2015-2016 55588 62382 89.10
Graph No. =11

Graph showing the Solvency ratio
Return on share holders ratio
Return on share holders

Return on share holders ratio ratio
2012-2013
Years
Interpretation:
From the above calculation we can observe the company is in a good position in paying its long
term and short term obligation in the 4 years the solvency of the company is in between 90.87 in the

year 2012-13. In the year 2013-14 it was 90.27. 89.53 In the year 2014-15 and 89.10 in the year 2015-
16. Solvency ratio of the bank just slight decreases.
CHAPTER-V
FINDINGS
SUGGESTIONS
CONCLUSIONS
BIBLIOGRAPHY

FINDINGS
Introduction:
The study aims at studying the financial performance of Vijaya bank. Inferences were made
with the help of primary and secondary data. Based on the analysis and summary of findings,
suggestions are presented below.
Findings:
1) The net profit has been declining; the pressure on the banks profitability is mainly due to
the decline in interest spread.
2) The growth in interest earned is very good. It is healthy position of the bank.
3) The total income ratio has been showing an increase.
4) Interest expended increased from year by year.
5) Employee cost of the bank slight increase in past three years but current year shows a large
amount of increases.
6) Miscellaneous expenses fluctuating in last four years.
7) Operating expenses of a bank is increasing year by year. This is because of constant
increase in the operating expenses of the company.
8) Total expenses increases year by year. It is not good for the bank.
9) Short term solvency position of a bank is very good. It has acceptable current ratio.
10) The debt equity ratio for the last four years above the standard limit.
11) Total asset turnover ratio of the bank fluctuating in year by year.
12) Income from payment business declined drastically.
13) The growth of debt to net worth has been good.
14) Return on share holders investment has increased in last 3 years. Current year 2009-2010
decreased.
SUGGESTIONS:
The net profit has declined due to the decline in the interest spread of the bank; there the bank
has to improve spread by cutting down the interest cost.
The bank has to maintain its debt equity ratio within standard limit. So the trading on equity is
possible.
The bank should bring down its total expenditure through reduction in operating cost.
Solvency position of the bank is good and can be further improved has its total assets are more
than the external liabilities company maintaining its good reputation and gaining more profit.
Return on shareholders investment is decreased in 2010-11 increased in 2009-10 by increases
in profit. The company has to increase further its esp. to give more dividends to satisfy
shareholders.
Since income from payment business is less the bank has to formulate strategies and policies in
order to increase the same.

Conclusion
The financial position of a Vijaya Bank indicates the efficiency with which funds are managed.
Financial soundness is the foundation for overall efficiency. Hence, it is essential that the financial
performance is monitored.
Thus from the above, study helps to know the solvency, liquidity as well as performance of the
each organization.
Now days, Indian banks are facing lots of competition from the foreign banks. In order to
tolerate for the heavy competition from the foreign banks, it is very much essential to know the
financial performance in time.

BIBILOGRAPHY
Books:
E.Gordon and Dr. K. Natarajan, financial markets and services, Himalaya publishing house,
2005
Kathari C.R, Methodology of Research, Vikas publishing house, 2008
Reddy and Appanaih, Business Research Methods, Himalaya publishing house, 2009
W.Wilsom, Management Accounting, Vikas publishing house
I.M Pandey, Financial Management, Tata MC Group Hill publishing
Bhale L.M, Financial institution & market, Tata MC Group Hill publishing
Khanny, Indian financial system, Vikas publishing house
Roma Mitra, Shankar Ravi (2008),
B.Satish Kumar (2008),
Brijesh K. Saho, Anandeep Singh (2007),
Petya Koeva (July 2003),
News papers:
Vijaya Karnataka
Times of India
Websites:
www.vijayabank.com
www.wikipedia.com
www.google.com

ANNEXURE
Profit loss account for the year April 2011 to March 2012
Expenditure Amount in crores

Interest expended 1.339
Employee cost 379
Selling & administration expenses 226
Miscellaneous expenses 570

Net profit for the year 127
2680
Incomes Amount in crores

Interest earned 2311
Other income 369
2680

Balance sheet for the year April 2011 to March 2012
Liabilities Amount in crores

Share capital 434
Net worth 1669
Deposits 27709
Borrowings 516
Other liabilities & provision 1639
31967
Assets Amount in crores

Cash and balances with RBI 2248
Balance with banks 586
Advances 16664
Investments 11180
Net block 554
Other assets 736
31967


Interest expended 1751
Employee cost 392

Depreciation 42
3160
Other income 337
3160

Share capital 434
Net worth 1897
Deposits 37604
Borrowings 198
42.357


Cash and balances with RBI 3.340
Advances 24223
Investments 12018
Net block 247
Other assets 859
42.357

Employee cost 405
Selling & administration 239
expenses
Depreciation 32
4515

Other income 532
4515

Share capital 434
Net worth 2459
Deposits 47952
Borrowings 1918
56184

Advances 31689
Investments 16617
Net block 508
Other assets 1272
56184


Employee cost 597
Depreciation 39
5937

Other income 699
5937

Advances 35468
Investments 17387
Net block 493
Other assets 1362
62.382

REVIEWED FINANCIAL RESULTS FOR THE QUARTER ENDED 31 TH DECEMBER,

2015, Rs. in Lakhs
Nine Months Year

Sl. ended Ended
Particulars
No. (Reviewed) (Audited)
31.12.2015 31.12.2014 31.03.2015
01 Interest earned [(a)+(b)+(c)+(d)] 583588 423528 584406
(a) Interest/discount on advances/bills 440321 301497
(b) Income from investments 138068 118492 16110
(c) Interest on balances with Reserve Bank of 52 65 126

India and other inter bank funds
(d) Others 5147 3474 3989
02 Other Income 38977 39030 53318
03 TOTAL INCOME (1+2) 622565 462558 637724
04 Interest Expended 442491 276684 389729
05 Operating Expenses (i) + (ii) 83375 92203 143328
(i) Employee costs 50510 62336 101044
(ii) Other operating expenses 32865 29867 42284
06 TOTAL EXPENDITURE (4+5) (Excluding 525866 368887 533057

provisions and contingencies)
07 OPERATING PROFIT (3 6) 96699 936 104667

(Profit before provisions and contingencies)

08 Provisions (other than tax) and Contingencies 49440 27712 43870
09 Exceptional items - - -
10 Profit/(Loss) from Ordinary Activities 47259 65959 60797

before tax (7-8-9)
11 Tax Expenses 7257 19000 8415
12 Net Profit/(Loss) from Ordinary Activities 40002 46959 52382

after tax (10-11)
13 Extraordinary Items (Net of Tax Expense) - - -
14 Net Profit/(Loss) for the period (12-13) 40002 46959 52382

Paid up equity share capital
15 (Face value of each share-` 10/-) 47267 43352 47267
16 Reserves excluding Revaluation Reserves (As 285050 222995 285050

per Balance Sheet of previous accounting year)
17 Analytical Ratios
(i) Percentage of shares held by Government 57.69 53.87 57.69

of India
(ii) Capital Adequacy Ratio (%)

Basel I 10.94 12.85 12.59
Basel II 12.39 13.67 13.88
(iii) Earnings per share (EPS) (Not annualized)

8.46 9.83 9.89
(a) Basic and Diluted EPS before Extraordinary
Items (Net of Tax Expenses
for the period, for the year to date and for the
previous year)
(b) Basic and Diluted EPS after Extraordinary 8.46 9.83 9.89
Items for the period, for the
year to date and for the previous year
(iv) NPA Ratios

a) Amount of Gross Non Performing Assets 166717 107290 125919
b) Amount of Net Non Performing Assets 99710 59854 74116
c) Percentage of Gross Non Performing Assets 2.98 2.46 2.56
d) Percentage of Net Non Performing Assets 1.81 1.38 1.52
(v) Return on Assets (Annualized) (%) 0.62 0.88 0.72
18 Public share holding
- Number of shares 200000000 200000000 200000000
- Percentage of share holding 42.31 46.13 42.31
19 Promoters and Promoter Group Shareholding
a) Pledged / Encumbered
Number of Shares Nil Nil Nil

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Sree Rayalaseema Alkalies and Allied Chemicals Ltd.

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 1

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 2

SCOPE OF THE SUBJECT

OBJECTIVES OF THE SUBJECT:

2. Wealth maximization means maximization of shareholders' wealth. It is an advanced goal

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 3

1. Gross profit margin

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 4

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 5

T.G. Venkatesh T.G. Bharath

Unnecessary interference by Board members in the day-to day affairs

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 7

product Range and Applications

(Toss per annum)

Calcium Hypo chlorite

Stable Bleaching powder

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 8

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 10

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 11

Functions of financial management

1. Funds requirement decision:

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 12

1. To ensure supply of funds to all parts of the organization.

Analysis of financial statements:

Importance of Financial Statements:

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 14

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 15

Following are the some important techniques of and interpretation

1. Comparative financial statement or analysis.

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 17

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 18

2. Common measurement statements or analysis:

3. Trend percentage analysis:

4. Fund flow statements or analysis:

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 19

5. Cash flow statements or analysis:

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 20

Interpretation of the ratios in the following ways:

Disadvantages of the ratios:

7. Cost volume profit analysis

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 22

DATA ANALYSIS AND INTERPRETATION

Years Amount(in crores) %(percentage)

2013-2014 289 127.55

2014-2015 356 180.0

Formula: 289 - 127 = 162/127*100 = 127.55

Chart No. -01

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 23

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 24

Years Amount(in crores) % percentage

Formula: 2823- 2312 = 511/2312 * 100 = 22.10

Graph No. -02

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 25

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 26

Years Amount(in crores) % percentage

2013-2014 3160 14.13

2014-2015 4515 50.54

Graph No. =03

Graph showing the total income

DR.K.V SUBBA REDDY INSTITUTE OF TECHNOLOGY, KURNOOL. Page 27

Table No. =04

2014-2015 405 3.43