PROJECT REPORT

“Financial Analysis”

BY

(BIRJU THAPA)

(G-172100222)

THE B.B.A PROGRAM

(2017-20)

H.N.B Garhwal University, Srinagar Garhwal

Uttarakhand

Doon College of Agriculture Science &Technology

Camp Road Selaqui, Dehradun(UK)

Submitted by: Submitted to:

Mr. BIRJU THAPA Mr. Anil Pundir
BBA 6thSemester (Asst. Professor)

Doon College of Agri. Science & Tech. (Department of Business Management)

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 ACKNOWLEDGEMENT

This project report is a result of endless effort & immense degree of toil by many
great minds.

I would like to thank all those people who graciously helped me by sharing their

valuable time, experience & knowledge SANDIP SINGH who have extended

their sincere help in accomplishing my project. I really want to thank the

above mentioned persons for their continuous support & guidance during the

project, with out their help my project would have been a distant dream.

I would like to dedicate this work to my revered institute Doon College of Agri.
Science & Technology where I am getting the shape of future business manager.

I express my sincere gratitude to honorable Mr. R.R Dwivedi Principal of D.C.A.S.T

for their support and guidance.I also Thankful to Mr. Anil Pundir Asst.Professor
(Department of Business Management) D.C.A.S.T for their guidance on the ground
of which I have acquired a new field of knowledge Lastly, I express my gratitude to
my Parents and Friends who financed this project and have been a moral support to
me during this project.

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 DECLARATION

I MR. BIRJU THAPA hereby declare that the term paper entitled

‘FINANCEL ANALYSIS’ YES BANK ,N.H.52 A, VILLAGE : LEKHI,

NAHARLAGUN(AP)’

Submitted to Doon PG Agriculture Science and Technology,

Selaqui, Dehradun for partial fulfillment of the requirement of the award of

degree of “ BECHALORE OF BUSINESS ADMISNISTRATION course is record

of

bonafide work carried out by me.

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S.NO. Chapters Page.no.
1
5 to 14
Introduction
2
15 to 38
Introduction of topic
3
38
Objectives of study
4
40 to 62
Research methodology
5
46 to 62
Data analysis
6
63
Finding
7
64
Suggestion

8
65
Limitation of the study
9
Conclusion
10
66 to 67
Bibliography
11
69
Annexure

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INTRODUCTION

5
 HISTORY

Yes Bank Ltd is engaged in providing a range of banking and financial services. The Bank operates
in four segments: Treasury Corporate/Wholesale Banking Retail Banking and Other Banking
Operations. The Treasury segment includes investments all financial markets activities undertaken
on behalf of the Bank's customers trading maintenance of reserve requirements and resource
mobilization from other Banks and financial institutions. The Corporate/Wholesale Banking
segment includes lending deposit taking and other services offered to corporate customers. The
Retail Banking segment includes lending deposit taking and other services offered to retail
customers. The Other Banking Operations segment includes para banking activities such as third-
party product distribution and merchant banking. Yes Bank's branch network stood at 1050
branches and its ATM network stood at 1724 as on 31 December 2017 which includes 573 Bunch
Note Acceptors/Cash Recyclers. The branch and ATM network is spread in 29 states and 7 Union
Territories. Yes Bank Ltd was incorporated on November 21 2003. The bank was founded by Rana
Kapoor. The Bank obtained certificate of commencement of business on January 21 2004. In the
year 2005 they forayed into retail banking with launch of International Gold and Silver debit card in
partnership with MasterCard International. In June 2005 they came out with the public issue and
their shares were listed on the stock exchanges. In December 2005 the Bank bagged Corporate
Dossier award from Economic Times. In the year 2006 the Bank received Financial Express Awards
for India's Best Banks. In April 2007 they made a tie-up with the Agriculture Insurance Company of
India (AIC). The Bank was ranked as the No 1 Emerging Markets Sustainable Bank of the Year-Asia
at the FT/IFC Washington Sustainable Banking Awards 2008 in London. The Bank was ranked as
the No 1 Bank in the Business Today-KPMG Best Banks Annual Survey 2008.During the year 2008-
09 the Bank opened 50 new branches and 18 new off-site ATMs. During the year 2009-10 the Bank
opened 33 new branches. They opened 64 Branches during the year 2010-11. As of March 31 2011
they operated 214 branches across 164 cities in India and approximately 250 automated teller
machines (ATMs).At the beginning of Financial Year 2010-11 the Bank embarked on an ambitious
journey into the next phase of growth and launched YES BANK - VERSION 2.0 Building the Best
Quality Bank of the World in India. Version 2.0 is clearly the most stimulating phase in the life cycle
of YES BANK with a vision of establishing 750 branches 3000 ATMs 12000 employees Rs 125000 Cr.
Deposit base Rs 100000 Cr. Loan book and a Rs 150000 Cr. Balance Sheet size by 2015.On 18

6
September 2013 Yes Bank announced that it has successfully closed equivalent to USD 255 million
by way of Dual Currency Multi-tenor Syndicated Foreign Currency Loan Facility. The facility has a
maturity of 1 and 2 years with majority commitments coming in the 2 year tenure bucket. The loan
has been widely distributed with commitments from 11 banks representing 8 countries across US
Europe Middle East Asia and Australia. The said facility shall be utilized for general corporate
purposes and trade finance for our valued clients.On 31 March 2014 Yes Bank announced that it has
recently raised additional USD 34 million from DEG through a long term senior loan agreement for
a tenor of 6 years. This loan arrangement follows Yes Bank raising dual tranche USD 150 million
from IFC Washington a member of the World Bank Group for tenor of 2 and 7 years in December
2013. Yes Bank was the first institution globally to receive funding through IFC's Managed Co-
Lending Portfolio Program and the first Indian bank to raise loan under IFC's A/B loan facility.On
30 May 2004 Yes Bank announced that it has successfully closed a qualified institutional placement
to raise USD 500 million (Rs 2942 crore) at issue price of Rs 550 per share.On 18 July 2014 Yes
Bank and TRANSFAST a leading international money transfer company announced the launch of
online money transfer services with instant deposits to customer accounts with any bank in India
through innovative technology offered by Yes Bank and running on the National Payments
Corporation of India (NPCI) core platform. This service facilitates real-time deposits of funds to all
banks currently connected to the NPCI platform for inward remittances and is available 24 hours a
day/7 days a week/365 days a year setting a new standard money transfer services.On 15
September 2014 Yes Bank announced that it has received ratings upgrade from credit rating agency
ICRA for its various long term debt programmes. The rating upgrades factor in Yes Bank's
continued robust operating performance with its ability to maintain strong asset quality indicators
through cycles and improving CASA base with increasing granularity in the liability franchise. The
ratings also factor in the highly successful recent equity mobilisation of USD 500 million by the
bank that further strengthens its capitalisation profile. On 30 September 2014 Yes Bank announced
that it has received ratings upgrade from credit rating agency Credit Analysis & Research (CARE)
for its lower Tier II upper Tier II and perpetual bonds. The ratings upgrade comes due to Yes Bank's
consistent profitability performance capital-raising ability and steady asset quality across economic
cycles. On 20 October 2014 Yes Bank announced that it has successfully raised equivalent of USD
422 million by way of Dual Currency Multi-tenor Syndicated Loan Facility. The facility has a
maturity of 1 2 and 3 years. The loan has been widely distributed with commitments being received
from 21 banks representing 14 countries across the US Europe Africa Middle East Japan Taiwan &
Australia with larger commitment coming in the 2 & 3 year tranches. The said facility shall be
utilized for general corporate purposes.On 23 December 2014 Yes Bank announced that it has
successfully raised USD 200 million unsecured loan facility from the Asian Development Bank. The
loan will be used by Yes Bank to lend the Indian rupee equivalent amount to finance working
capital and investment loans targeted towards small farm households and rural women in Self Help
Groups (SHGs).On 25 February 2015 Yes Bank announced that it has successfully issued India's first
ever Green Infrastructure Bonds raising an amount of Rs 1000 crore. The issue launched on 16
February 2015 for Rs 500 crore plus green shoe option witnessed strong demand from leading
investors including Insurance companies Pension & Provident Funds Foreign Portfolio Investors
New Pension Schemes and Mutual Funds resulting in a total subscription of Rs 1000 crore and was
closed on 24 February 2015. The bonds are for a tenor of 10 years. The amount raised will be used

7
by Yes Bank to finance Green Infrastructure Projects in Renewable Energy including Solar Power
Wind Power Biomass and Small Hydel Projects. The Board of Directors of Yes Bank at its meeting
held on 22 April 2015 approved the proposal to seek final approval of shareholders for increase in
the limit for the FII/FPI of upto 74% of the paid up share capital of the bank from the existing limit
of 49% of the paid up share capital. In another decision the Board empowered the Capital Raising
Committee a sub Committee of the Board to raise funds by way of issuance of equity capital up to
US$ 1 billion in one or more tranches on such terms and conditions as it may deem fit. The issuance
may be by way of Qualified Institutions Placement (QIP) or any other international offering like
Global Depository Receipts (GDRs)/American Depository Receipts (ADRs) or by any other
appropriate mode as decided by the Capital Raising Committee. The Board also approved
sponsored Level I Depository Receipt (DR) issuance programme of upto 10 million DRs with
conversion of 2 equity shares to 1 DR pursuant to the Depository Receipts Scheme 2014 (the
Scheme) for facilitating issue of depository receipts (the DR) outside India against underlying
existing equity shares through a Foreign Depository through sponsored/unsponsored route.On 14
July 2015 Yes Bank announced that it has received approval from the Reserve Bank of India to set
up IFSC Banking Units (IBUs) in Gujarat International Finance Tec City (GIFT). Establishing the IBU
will propel Yes Bank's growth plans further by providing it access to international financial markets
as well as provide a comprehensive product suite to its corporate clients requiring foreign currency
(FCY) funding. It will also allow Yes Bank to raise FCY funding through MTNs and other routes as
appropriate.On 5 August 2015 Yes Bank announced that it has raised Rs 315 crore through the
issue of Green Infrastructure Bonds to International Finance Corporation Washington. This is the
first investment by IFC in an Emerging Markets Green Bond issue in the world. The bonds are for a
tenor of 10 years. The amount raised will be used by Yes Bank to finance green infrastructure
projects like solar power and wind power in the renewable energy space. Speaking at the inaugural
session of the Tamil Nadu Global Investors Meet 2015 in Chennai Rana Kapoor MD & CEO of Yes
Bank announced on 9 September 2015 the planned launch of Yes Bank's single largest National
Centralised Operations Management and Services Delivery facility in Ambattur - Chennai. This
Chennai facility which is envisaged as the future of Banking Services Operations & technology of the
world in India will be spread across 4 lac square ft space. As the anchor tenant the tower will be
named Yes Bank Tower Centre of Management Excellence and will be expanded to 9 lac sq ft in the
second phase by March 2018. The Phase 1 of the facility is expected to become operational by Q1 FY
2017.On 27 October 2015 Yes Bank announced that it has operationalised its IFSC Banking Unit
(IBU) in the Gujarat International Finance Tec City (GIFT) thus becoming the first bank to have
begun its operations by setting up an IBU in GIFT city. On 31 December 2015 Yes Bank announced
that the bank has successfully raised Rs 1500 crore of Basel III compliant Tier II bonds. The bonds
will be listed on the BSE Limited.On 30 November 2015 Yes Bank announced that it has signed an
agreement with the Overseas Private Investment Corporation (OPIC) the US government's
Development Finance Institution for debt financing of $245 million to increase lending to micro
small and medium enterprises (MSMEs) in India. US-based lender Wells Fargo Bank N.A. will act as
sponsor and co-lender to the project providing a loan of $20 million bringing the total facility
amount to $265 million. Specifically half of the financing will be used to support either Micro-SMEs
or SMEs in underserved rural and urban markets.On 19 January 2016 Yes Bank formalised the
Memorandum of Understanding signed with The London Stock Exchange during Prime Minister

8
Narendra Modi's UK visit in November 2015 to develop bond and equity issuance with particular
focus on the relatively untapped sector of Green Infrastructure Finance. As part of the agreement
with London Stock Exchange Group Yes Bank confirmed that it plans to list a Green Bond of up to
$500 million on London Stock Exchange by December 2016. On 3 March 2016 Yes Bank announced
that it has acquired 5 lakh equity shares of Institutional Investor Advisory Services (IiAS) from BSE
Limited which is equivalent to 5.006% of the paid-up capital of IiAS. IiAS is a proxy advisory firm
dedicated to providing participants in the Indian market with independent opinion research and
data on corporate governance issues as well as voting recommendations on shareholder
resolutions.On 27 July 2016 Yes Bank announced that it has received an inprinciple approval from
the Securities & Exchange Board of India (SEBI) to sponsor a mutual fund and to setup an Asset
Management Company (AMC) and a Trustee Company. The AMC and the Trust Company will be set
up as wholly owned subsidiaries of the bank. Yes Bank said that the AMC will further strengthen
Yes Bank's expertise in wealth management solutions debt capital markets and gain from its
significant and growing customer base & distribution network and overall execution expertise to
build a large and profitable fund management franchise. Earlier in October 2015 Yes Bank received
approval from the Reserve Bank of India to sponsor a Mutual Fund and to setup Asset Management
Company (AMC) and a Trustee Company. On 8 September 2016 Yes Bank announced its decision to
defer qualified institutions placement (QIP) of its equity shares due to heightened volatility in stock
price during early course of trading hours on that day. On 27 September 2016 Yes Bank announced
that it will raise Rs 330 crore (approximately USD 50 million equivalent) through an issue of a 7-
year Green Infrastructure Bonds to FMO the Dutch Development Bank on a private placement basis.
FMO will be investing in Yes Bank's bonds through FMO's own sustainable bonds. The amount
raised will be used by Yes Bank to finance green infrastructure including solar and wind projects in
the renewable energy space. This issuance would be externally assured by a reputed third party. An
external annual review and monitoring would be undertaken on the use of proceeds in line with the
Green Bond Principles 2016.On 4 October 2016 Yes Bank announced that it has successfully raised
Rs 2135 crore (including green shoe of Rs 1135 crore) by issuing Senior Long-term Infrastructure
Bonds on private placement basis. The proceeds from the Infrastructure Bonds will be used to
finance long term projects in infrastructure and its allied sub-sectors in accordance with the
guidelines issued by the Reserve Bank of India. On 2 November 2016 Yes Bank announced that it
has generated $ 650 million worth of business outstanding (Customer Assets) at its IFSC Banking
Unit (IBU) in Gujarat International Finance Tec City (GIFT). Yes Bank was the first bank to start
operations in GIFT City in October 2015.On 29 March 2017 Yes Bank announced closure of qualified
institutions placement (QIP) of its equity shares. The bank successfully raised Rs 4906.65 crore
from issue of 3.27 crore shares at the issue price of Rs 1500 per share. The Capital Raising
Committee of the Board of Yes Bank on 16 October 2017 approved the issue of Perpetual
Subordinated Unsecured Non Convertible BASEL III compliant Additional Tier I Bonds in the nature
of Debentures of Rs 10 lakh each aggregating to Rs 3000 crore with a Green shoe option to retain
oversubscription to the extent of an additional Rs 3000 crore.The Board of Directors of Yes Bank at
its meeting held on 26 July 2017 approved sub-division of equity shares from 1 equity share of Rs
10 each into 5 equity shares of Rs 2 each. On 21 November 2017 Yes Bank announced that it has
raised USD 400 million through two syndicated loan transactions in Taiwan and Japan comprising
USD 250 million from Taiwanese banks and JPY 16.5 billion (USD 150 million) from Japan.On 23

9
November 2017 Yes Bank announced that it has been included in the MSCI All Country World Index
(ACWI) - ESG Leaders Index and MSCI ACWI SRI Index. This makes the bank the first and only
Indian bank to be part of the three global ESG benchmark indices - MSCI ESG/SRI DJSI and
FTSE4Good in 2017.On 29 November 2017 Yes Bank announced that the Capital Raising Committee
of the Board of the bank at its meeting held on 29 November 2017 has considered and approved the
bank's proposal to set up the Medium Term Note (MTN) Programme for an amount of USD 1 billion
to eligible investors from time to time in one or more tranches and/or series under the MTN
programme of the Bank within limits permitted by regulatory authorities.On 12 December 2017
Yes Bank subscribed to and was allotted 9.4 lakh equity shares constituting 5.62% of the post-issue
paid-up capital of OPOSL under the anchor investor portion in the initial public offer of OPOSL on
the Emerge platform of National Stock Exchange of India. OPOSL is primarily a domestic BPO
mainly engaged in outsourcing services which includes inbound and outbound call bank
office/transaction processing data management services and business analytics catering to clients
across industries including telecommunications BFSI travel manufacturing E-commerce etc. On 18
December 2017 Yes Bank made its entry in the 30-share S&P BSE Sensex.On 19 December 2017 Yes
Bank announced that expansion of renewable energy power generation across India will be
supported by a new USD 400 million joint initiative backed by the European Investment Bank (EIB)
and Yes Bank. Yes Bank will manage the co-financing programme for construction of new solar
power plants and wind farms across the country. This new initiative is the first EIB cooperation
with Yes Bank and represents the first support for renewable energy in Asia with a commercial
bank. This is also the longest tenor borrowing facility for Yes Bank in the international loan market.
On 17 January 2018 Yes Bank announced that it has signed solar energy co-financing Letters of
Intent (LoI) with Tata Power Delhi Distribution Limited (up to 10 MW capacity) Hero Future
Energy (up to 1.5 GW capacity) Greenko Group (up to 10 GW capacity) Amplus Solar (up to 1 GW
capacity) and Jakson Group (up to 1 GW capacity) for their solar projects in India to be completed
by 2023. On 7 February 2018 Yes Bank announced that it has successfully completed issuance of its
maiden USD 600 million bond issue in the international debt markets. The bonds received an
overwhelming response from international investors and saw a final order book at a spread of 130
basis points being oversubscribed by more than 1.83 times from over 90 accounts. The proceeds
will be used to fund the bank's IFSC Banking Unit (IBU) in Gift City and expand IBU's rapidly
growing business opportunities. Earlier the Capital Raising Committee of the Board of the bank on 2
February 2018 approved the issuance and allotment of fixed rate notes for an aggregate principal
amount of USD 600 nillion under the Medium Term Note programme of the bank.On 14 February
2018 Yes Bank announced the listing of the bank's debut USD 600 million bond issue under its
maiden USD 1 billion MTN programme on Global Securities Market (GSM) India's first capital
raising platform for international investors in any currency located at the Gujarat International
Finance Tec City (GIFT City) IFSC. On 16 February 2016 Yes Bank clarified to the stock exchanges
that the bank has nil exposure to the entities that were associated with the fraud in the gems and
jewellery sector. The Capital Raising Committee of the Board of Yes Bank on 21 February 2018
approved the issue of rated listed non-convertible redeemable unsecured BASEL III compliant Tier
2 Bonds in the nature of debentures of Rs 10 lakh each aggregating to Rs 3000 crore.On 13 March
2018 Yes Bank announced that has acquired 8.97 crore equity shares constituting 17.31% of the
paid-up share capital of Fortis Healthcare Limited pursuant to invocation of pledge on the said

10
equity shares subsequent to default by promoter group companies in the credit facility provided by
the bank. On 15 March 2018 Yes Bank announced that it has sold 1.12 crore shares constituting
2.17% of the paid up share capital of Fortis Healthcare Limited in various tranches last being on 15
March 2018.On 16 March 2018 Yes Bank announced that Mahindra Renewables Pvt. Ltd. a wholly
owned subsidiary of Mahindra Susten Pvt. Ltd. achieved financial closure for its 250 MW solar
power project to be located in Rewa District of Madhya Pradesh with Yes Bank for financial
assistance in the form of project debt to the extent of Rs 750 crore and from other financial
institutions up to Rs 200 crore.The Capital Raising Committee of the Board of Yes Bank on 21 March
2018 approved a proposed drawdown of the second tranche under the US$ 1 billion Medium Term
Note Programme of the bank within the limits permitted by regulatory authorities.

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INTRODUCTION
OF
TOPIC
12
 FINANCIAL ANALYSIS

MEANING OF FINANCIAL STATEMENTS:-

Financial statements refer to such statements which contains financial information about an enterprise.
They report profitability and the financial position of the business at the end of accounting period. The
team financial statement includes at least two statements which the accountant prepares at the end of
an accounting period. The two statements are: -

1. The Balance Sheet

2. Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet mirrors the
financial position on a particular date in terms of the structure of assets, liabilities and owners
equity, and so on and the Profit And Loss account shows the results of operations during a
certain period of time in terms of the revenues obtained and the cost incurred during the year.

13
Thus the financial statement provides a summarized view of financial positions and operations
of a firm.

MEANING OF FINANCIAL ANALYSIS

The first task of financial analysis is to select the information relevant to the decision under
consideration to the total information contained in the financial statement. The second step is to
arrange the information in a way to highlight significant relationship. The final step is interpretation and
drawing of inference and conclusions. Financial statement is the process of selection, relation and
evaluation.

Features of Financial Analysis

 - To present a complex data contained in the financial statement in simple and

understandable form.

 - To classify the items contained in the financial statement in convenient and rational
groups.

 To make comparison between various groups to draw various conclusions.

Purpose of Analysis of financial statements

 To know the earning capacity or profitability.

 To know the solvency.

 To know the financial strengths.

 To know the capability of payment of interest & dividends.

 To make comparative study with other firms.

 To know the trend of business.

14
  To know the efficiency of mgt.

 To provide useful information to mgt

Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and interpretation of financial statements:-

 The analyst should acquaint himself with principles and postulated of accounting. He
should know the plans and policies of the management so that he may be able to find
out whether these plans are properly executed or not.

 The extent of analysis should be determined so that the sphere of work may be decided.
If the aim is find out. Earning capacity of the enterprise then analysis of income
statement will be undertaken. On the other hand, if financial position is to be studied
then balance sheet analysis will be necessary.

 The financial data be given in statement should be recognized and rearranged. It will
involve the grouping similar data under same heads. Breaking down of individual
components of statement according to nature. The data is reduced to a standard form.

 A relationship is established among financial statements with the help of tools &
techniques of analysis such as ratios, trends, common size, fund flow etc.

15
 The information is interpreted in a simple and understandable way. The significance and
utility of financial data is explained for help in decision making.

 The conclusions drawn from interpretation are presented to the management in the
form of reports.

TYPES OF FINANCIAL ANALYSIS

A) Classification on the basis of natural used

a) External Analysis

Outsiders, who don’t have access to the detailed internal accounting records of the
business firm, do this analysis. These outsiders parties are potential investor,
creditors, government agencies, credit agencies & general public.

b) Internal Analysis:

The analysis conducted by person who has access to the internal accounting records
of a business firm is known as internal analysis.

B) On the basis of modus operand:

a) Horizontal Analysis:

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 Horizontal analysis refers to the comparison of financial data of a company for
several years. The figures of this type of analysis are presented horizontally over a
no. of columns. This type of analysis is also called “Dynamic Analysis”.

b) Vertical Analysis:

This analysis refers to the study of relationship of the various items in the financial
statements, of one accounting period. It is also known as “Static analysis”.

FUNCTIONS OF FINANCE DEPARTMENT

The functions of finance department include the following areas:

1) Effective management of financial resources of the company.

2) Coordinates & Monitors the functions of accounts activities in the units/marketing

offers.

3) Establish and maintain systems of financial control, internal check and render advice on
financial & accounting matters including examination of feasibility report and detailed
project reports.

4) Establish and maintain proper system of budgetary control, cost control and
management reporting.

5) Maintain financial accounts and compile annual periodical accounts in accordance with
the companies Act, 1956, ensuring the audit of accounts as per law/Govt. directions.

17
 6) Looks after overall funds management and arranges funds required for the capital
schemes and working capital form govt., banks and financial institutions etc.

7) Timely payment of all taxes, levies & duties under the Law, Maintenance of records and
filing returns statements connected with such taxes, levies and duties with the
appropriate authorities , as per law.

All the power involving financial implications are to e exercised in prior consultation with head of
concerned finance department. In the event of any difference of opinion

between the General Manger and the Head of Finance Dept., the matter shall be referred to Managing
Director who after consulting Director (Finance) shall issue appropriate instruction after following the
prescribed procedures.

METHODS OF FINANCIAL ANALYSIS

A number of methods can be used for the purpose of analysis of financial statements. These are also
termed as techniques or tools of financial analysis. Out of these, and enterprise can choose those
techniques which are suitable to its requirements. The principal techniques of financial analysis are:

1. Comparative Financial Statements.

2. Common – size Statements

18
 3. Trend Analysis

4. Funds Flow statements

5. Cash Flow Statement.

COMPARATIVE FINANCIAL STATEMENTS

When financial statements figures for two or mote years are placed side-side to facilitate comparison,
these are called ‘comparative Financial Statements’. Such statements not only show the absolute figures
of various years but also provide for columns to indicate to increase ort decrease in these figures from
one year to another. In addition, these statements may also show the change from one year to another
on percentage form. Such cooperative statements are of great value in forming the opinion regarding
the progress of the enterprise.

PURPOSE OR UTILITY OR IMPORTANCE OF COMPARATIVE STATEMENTS

1. To make the Data simpler and more understandable

2. To indicate the Trend

3. To indicate the strong points weak points of the concern

19
4. To compare the firms performance with the average performance of the industry

5. To help in forecasting

20
 FORMS OF PRESENTING COMPARATIVE STATEMENTS

1. To show only the absolute data of various items or in other words to show only rupee
amounts of various items.

2. To show the increases and decreases in data in terms of money values

3. To show the increases and decreases in data in terms of percentages

4. Comparison expressed in ratios

5. Use of cumulative figures and averages

COMPARATIVE BALANCE SHEET

The Comparative Balance Sheet as on two or more different dates can be prepared to show the
increase or decrease in various assets, liabilities and capital. Such a comparative Balance Sheet is very
useful in studying the trends in a business enterprise.

ADVANTAGES OF COMPARATIVE BALANCE SHEET

1. Helpful for comparison.

2. Helpful in knowing changing in the size of items.

3. Helpful in knowing trends.

4. Link between income statement and Balance sheet

21
 COMPARATIVE PROFIT & LOSS ACCOUNT

Profit and loss account shows the net profit or net loss of a particular year whereas comparative profit
and loss account for a number of years provides the following information

1. Rate of increase or decrease in gross profit.

2. Rate of increase or decrease in operating profit.

3. Rate of increase or decrease in cost of goods sales

4. Rate of increase or decrease in net profit

5. Rate of increase or decrease in sales.

TREND ANALYSIS

Trend percentage are very useful is making comparative study of the financial statements for a
number of years. These indicate the direction of movement over a long tine and help an analyst
of financial statements to form an opinion as to whether favorable or unfavorable tendencies
have developed. This helps in future forecasts of various items.

For calculating trend percentages any year may be taken as the ‘base year’. Each item of base
year is assumed to be equal to 100 and on that basis the percentage of item of each year
calculated.

22
RATIO ANALYSIS

MEANING :

Absolute figures expressed in financial statements by themselves are meaningfulness. These figures
often do not convey much meaning unless expressed in relation to other figures.

Thus, it c an be say that the relationship between two figures, expressed in arithmetical terms is called a
ratio.

“According to R.N. Anthony.”

“A ration is simply one number expressed in terms of another. It is found by dividing one
number into the other.”

TYPES OF RATIOS

 Proportion or Pure Ratio or Simple ratio.

 Rate or so many Times.

 Percentage

 Fraction.

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OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS

 Helpful in analysis of financial statements.

 Simplification of accounting data.

 Helpful in comparative study.

 Helpful in locating the weak spots of the business.

 Helpful in forecasting

 Estimate about the trend of the business

 Fixation of ideal standards

 Effective control

 Study of financial soundness.

LIMITATION OF RATIO ANALYSIS

 False accounting data gives false ratios

 Comparisons not possible of different firms adopt different accounting policies.

 Ratio analysis becomes less effective due to price level change

 Ratios may be misleading in the absence of absolute data.

 Limited use of a single Ratio.

 Window-Dressing

 Lack of proper standards.

 Ratio alone are not adequate for proper conclusions

 Effect of personal ability and bias of the analyst.

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CLASSIFICATION OF RATIOS

In view of the financial management or according to the tests satisfied, various ratios have been
classified as below

I. Liquidity Ratios: These are the ratios which measure the short-term solvency or financial
position of a firm. These ratios are calculated to comment upon the short-term paying
capacity of a concern or the firm’s ability to meet its current obligations.

II. Long –Term Solvency and Leverage Ratios : Long-term solvency ratios convey a firm’s
ability to meet the interest cost and repayment schedules of its long-term obligation e.g.
Debit Equity Ratio and Interest Coverage Ration. Leverage Ratios.

III. Activity Ratios: Activity ratios are calculated to measure the efficiency with which the resource of
a firm have been employed. These ratios are also called turnover ratios because they indicate the
speed with which assets are being turned over into sales e.g. debtors turnover ratio.
IV. Profitability Ratios: These ratios measure the results of business operations or overall
performance and effective of the firm e.g. gross profit ratio, operating ratio or capital
employed. Generally, two types of profitability ratios are calculated.

(a) In relation to Sales, and

(b) In relation in Investment

25
 OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how goal be achieved. Every study must have an
objective for which all the efforts have been done. Without objective no research can be conducted and
no result can be obtained. On the basis of objective all the research process is followed. Objectives are
the main aspect of every study. The objective of the study gives direction to go through the research
problem. It guides the researcher and keeps him on track.

I have two objectives regarding my research project. These are shown below :-

1. Primary objective

2. Secondary objective

1. Primary objective :-

1) To study the software used in Yes Bank

2) To analyze the financial statements of the corporation to

2. Secondary objective :-

1) To find out the shortcomings in Yes Bank

2) To see whether Yes Bank is going well or not in different areas

3) To inform the management about the financial condition of

4) To inform the investor, enabling them to take the investment

decision.

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 RESEARCH METHODOLOGY

The procedure adopted for conducting the research requires a lot of attention as it has direct
bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that
research methodology, which we used at the time of conducting the research, needs to be
elaborated upon. Research Methodology is a way to systematically study and solve the research
problems. If a researcher wants to claim his study as a good study, he must clearly state the
methodology adapted in conducting the research the research so that it way be judged by the
reader whether the methodology of work done is sound or not.

The Research Methodology here includes.

1. Meaning of Research.
2. Research Problem.
3. Research Design.
4. Sampling Design.
5. Data Collection method.
6. Analysis and interpretation of Data.

Meaning Research:
Research is defined as “a scientific and systematic search for pertinent information on a
specific topic”. Research is an art of scientific investigation. Research is a systematized effort to
gain now knowledge. It is a careful investigation or inquiry especially through search for new
facts in any branch of knowledge. Research is an academic activity and this term should be used
in a technical sense. Research comprises defining and redefining problems, formulating
hypothesis or suggested solutions. Making deductions and reaching conclusions to determine
whether they if the formulating hypothesis.

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Research is thus, an original contribution to the existing stock of knowledge making for its
advancement. The search for knowledge through objective and systematic method of finding
solutions to a problem is research.

Research Problem

The first step while conducting research is careful definition of Research Problem. “To ERR IS
THE HUMAN” is a proverb which indicates that no one is perfect in this world. Every researcher
has to face many problems which conducting any research that’s why problem statement is
defined to know which type of problems a researcher has to face while conducting any study. It
is said that,

“Problem well defined is problem half solved.”

Basically, a problem statement refers to some difficulty, which researcher experiences in the
context of either a theoretical or practical situation and wants to obtain the solution for the
same.
The problem statement here is:
“To make a Financial Analysis of Financial statements of Yes Bank Naharlagun AP.

Research Design
A research designs is the arrangement of conditions for collection and analysis data in a manner
that aims to combine relevance to the research purpose with economy in procedure. Research
Design is the conceptual structure with in which research in conducted. It constitutes the
blueprint for the collection measurement and analysis of data. Research Design includes and
outline of what the researcher will do form writing the hypothesis and it operational
implication to the final analysis of data. A research

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design is a framework for the study and is used as guide in collection and analyzing the data. It
is a strategy specifying which approach will be used for gathering and analyzing the data. It also
include the time and cost budget since most studies are done under these two cost budget
since most studies are done under theses tow constraints.
The design is such studies must be rigid and not flexible and most focus attention on the
following.

1. What is the study about?

2. Why is the study being made?

3. Where will the study be carried out?

4. What type of data is required?

5. Where can be required data be found?
6. What period of time will the study include?
7. What will be sample design?
8. What techniques of data collection will be used?
9. How will the data be analyzed?
10. In what style will the report be prepared?

TYPES OF RESEARCH DESIGN:

 EXPERIMENTAL RESEARCH DESIGN

 EXPLORATORY RESEARCH DESIGN
 DESCRIPTIVE& DIAGNOSTIC RESEARCH

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Exploratory Research Design: This research design is preferred when researcher has a vague
idea about the problem the researcher has to explore the subject.
Experimental Research Design – The research design is used to provide a strong basis for the
existence of casual relationship between two or more variables.
Descriptive Research Design – It seeks to determine the answers to who, what, where, when and how
questions. It is based on some previous understanding of the matter.

Diagnostic Research Design It determines the frequency with which something occurs or its
association with something else.
Research Design Used in this Project
Research Design chosen for this study is Descriptive Research Design. Descriptive study is based
on some previous understanding of the topic. Research has got a very specific objective and
clear cut data requirements.

Sampling Design
Sampling is necessary because it is almost impossible to examine the entire parent population
(i.e. the entire universe) various factors such as time available cost, purpose of study etc. make
it necessary for the researchers to choose a sample. It should neither be too small nor too big. It
should be manageable. THE sample size of past 3 years is taken for present study due to time
limitation.

DATA COLLECTIONS
The process of data collection begins after a research problem has been defined and research
design ahs been chalked out. There are two types of data –

METHODS OF PRIMARY DATA

 OBSERVATION METHOD

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 INTERVIEW METHODS
 QUESTIONAIRE METHOD
 SCHEDULE METHOD

PRIMARY DATA -

It is first hand data, which is collected by researcher itself. Primary data is collected by various
approaches so as to get a precise, accurate, realistic and relevant data. The main tool in gathering
primary data was investigation and observation. It was achieved by a direct approach and observation
from the officials of the company.

SECONDARY DATA - it is the data which is already collected by someone else. Researcher has
to analyze the data and interprets the results. It has always been important for the completion
of any report. It provides reliable, suitable, adequate and specific knowledge.
I took data comprise annual reports and post records. Bank has provided me annual reports
from 2008-09 to 2010-11 by help of which, I prepared my report.
The valuable cooperation extended by staff members contributed a lot to fulfill the
requirements in the collection of data in order to complete the project. Various statistical tools
are applied depending on the research problem. In this study ratio analysis, comparative
financial statements analysis, common size statements and Trend Analysis has been used for
analyzing and interpreting the result.

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COMPARATIVE PROFIT AND LOSS OF HDFC BANK
FOR THE YEAR ENDED 31ST MARCH, 2019
COMPERATIVE INCOME STATEMENT for the year ended 31st March 2019
PARTICULARS 2018 2019 INC/DEC %INC/DEC

INT INCOME 8303.3 12354 4051.1 48.78

(-)Cost of sales 2371.1 3663.6 1292.5 54.51

G.P(A) 5932.3 8690.9 2758.6 46.5

OPERATING EXP

Selling Exp 74.88 114.73 39.85 53.21

Adm EXP 1519.3 2247.5 728.16 47.92

Total Operating Exp(B) 1594.2 2362.2 768.01 48.17

Operating income(A-B) 4338.1 6328.6 1990.6 45.88

(+)O.Income 2855.8 3846.8 990.98 34.7

T.Inc 7193.9 10175 2981.5 41.44

(-)O.Exp 3956.3 6188.5 2232.2 56.42

Net income 3237.6 3986.9 749.38 23.14

(-)Tax 497.7 690.9 193.2 38.81

Net Profit 2739.9 3296 556.18 20.29

INTERPRETATION

Since the profit of the bank has been inc.by 20.29% during last fiscal so financial of bank is
satisfactory.

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RATIO ANALYSIS

VARIOUS CALCULATED RATIOS OF NLL

Current Ratio
Current ratio may be defined as the relationship between current assets and current liabilities.

Current ratio = Current assets/current liabilitie

Year 2009 2010 2011

Current Ratio 1.10 1.07 1.08

Interpretation
If the C.R. is less than 2 : 1, it indicates lack of liquidity and shortage of working capital.
But a much higher ratio, even though it is beneficial to the short-term creditors, is not
necessarily good for the company. A much higher ratio than 2 : 1 may indicate the poor
investment policies of the management. So liquidity of Bank is satisfactory.
Interest coverage/debt service ratio
= Net profit (before interest and taxes)/ Fixed interest charge

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Interpretation :
Since this Ratio indicates the interest paying capability of firm and ideal Ratio is 6 to 7
times. So interest paying capacity of the firm is moderate.

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Operating ratio= (Operating cost / Net income )*100

Interpretation :
Operating Ratio is a measurement of the efficiency and profitability of the business
enterprise. The ratio indicate the extent of sales that is absorbed by the cost of goods
sold and operating expenses. Lower the operating ratio, the better it is , because it will
leave higher margin of profit on sales.

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Return on gross capital employed=(Net profit / Gross capital
employed) * 100

Gross capital employed= fixed assets + current assets

Interpretation :

Since profit is the overall objective of a business enterprise, this ratio is a barometer of
the overall performance of the enterprise. It measures how efficiently the capital employed in
the business is being used.

36
Return on shareholders=(Net profit / Shareholders funds) *100

Interpretation :
This Ratio indicates what amount of return has been given to the Share holders of the
firm which help in building the good will firm.

Interest expense ratio= (Interest expense / income) * 100

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Interpretation :
This Ratio indicates that what is the Ratio of Total Interest Expenses to the Income. So
that we can know about profitability of firm.

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Net profit ratio = (Net profit / Net income) * 100

Interpretation :
This Ratio measures the rate of net profit earned on sales. It helps in determining the
overall efficiency of the business operations. An increase in the ratio over the previous
year shows improvement in the overall efficiency and profitability of the business.

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Operating profit ratio= (Operating profit / Income) *

100

Interpretation :
Operating Ratio and Operating Profit Ratio are inter-related and total of both these
Ratio is 100. Both Ratios indicated the profitability of firm.

40
Return on net capital employed = (Net profit / Net capital
employed) * 100

Net capital employed = Total assets- Current liability

Interpretation :
This Ratio indicates how well the Capital employed is being use in business. Even the
performance of two Dissimilar firms may be compared with the help of this Ratio.

41
Operating expenses ratio= (Operating Expenses /Income)

*100

Interpretation :

This Ratio indicates the how much expenses has been spent on selling and
administration use of organization.

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EPS = Net profit after interest, tax & preference dividend /
No. of equity shares

Interpretation :

This ratio is helpful in the determination of the market price of the equity share of the company.
The ratio is also helpful in estimating the capacity of the company to declare dividends on equity shares.

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DPS = Dividend paid to equity shareholders / No. of equity
shares

Interpretation :

This Ratio indicates how much profit has been given in hand to the equity share holders.
This represents higher the ratio more is the good will of the firm.

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 P.E Ratio = Market price per share / Earning per

share

Interpretation :

This ratio shows how much is to be invested in the market in this company’s shares to
get each rupee of earning on its shares. The ratio is used to measure whether the market price
of a share is high or low.

45
 STATISTICAL TOOLS

Introduction:

An educated citizen needs an understanding of basic statistical tools to function

in a world that is becoming increasingly dependent on quantitative information.

Statistics means numerical description to most people

In fact the term statistics is generally used to mean numerical facts and figures such as
agricultural production during a year, rate of inflation and so on. However as a subject of study, statistics
refers to the body of principles and procedures developed for collection, classification, summarization
and interpretation of numerical data and for the use of such data.

Meaning: Broadly speaking the term statistics has been generally used in two senses:

 Singular Sense
 Plural sense
The term statistics in its PLURAL SENSE, refers to the numerical data or statistical data. In its SINGULAR
SENSE, the term refers to a science in which we deal with the techniques or methods of collecting,
classifying, presenting, analyzing and interpreting the data. In other words, the concept in its singular
sense, refers to statistical methods.

Purpose

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Without the assistance of statistical methods an organization would find it impossible to make a sense
of huge data.

The purpose of statistics is to-

-Manipulate

-Summarize

-Investigate

The data so that useful making information results could be found out. In fact every business manager
needs a sound background of statistics. Statistics is a set of Decision Making Techniques, Which aids
businessmen in drawing inferences from the available data.

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 FINDING

 Making available just adequate quantum of working capital. Some of the

existing machinery is new with absolute equipments requiring modernization
and rebuilding.

 The Bank should administrate their credit on the basis of certain well
recognized and established principle of credit administration.

 The Bank should maintain an optimum level of cash in the business in order to
maintain a proper liquidity in bank.

 The basic limitation of ratio analysis is that it may be difficult to find a basis
for making the comparison

 Normally, the ratios are calculated on the basis of historical financial

statements. An organization for the purpose of decision making may

need the hint regarding the future happiness rather than those in the past.

 The external analyst has to depend upon the past which may not

necessary to reflect financial position and performance in future.

 The technique of ratio analysis may prove inadequate in some situations if

there is differs in opinion regarding the interpretation of certain ratio.

 As the ratio calculates on the basis of financial statements, the basic

limitation which is applicable to the financial statement is equally

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 Suggestion

1. The profit of the Bank is not good position for the bank has that company has to
take alternative action sych as .

2. The bank have low current ratio so it should increase its current ratio it can
meet short team obligation smoothly.

3. The bank high inventory so I suggested that the firm must reduce the stock by
increase sales

4. The bank should have proper chech on the bills

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 LIMITATION OF THE STUDY

* Kothari C.R., “Quantitative Techniques1” ,Pg10-20, “I have taken

knowledge about research design ,sample design & sampling. In this I got

what type of sample can be chosen and more about sample design”

* Khan M.Y, Jain P.K “Management Accounting2”,Pg 67 , Ratios and there

formulations”.

* Bruch Lev, “Financial Statement Analysis-A new approach3”,p-11,2006,

“How ratio can be analysed and about the interpretation of these ratios.”

* Gupta S.P., “Business Statistics4”, Pg 378-418 “From here I found the

information regarding correlation , trend and statistical tools”.

* Goel D.K. “Management Accounting and Financial Management5”,Pg 78 “In

this I found the different types of ratios and there formulas and about

thumb rule and all basic concept”.

* Pandey , I.M “Financial Management6” Pg-143-145 “How to prepare

comparative balance sheet and how can we evaluate”.

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* Maheshwari ,S.N , ‘Advanced Accounting7” pg b40-b48, “It explains ratio

analysis as a tool to analyze the financial statements of organization.

Different ratios depict the position of firm in market”.

* Mittal R.K , “Management Accounting& Financial Management8” pg 28-30

“from this I have how to prepare comparative balance sheet and how to

interpret it”

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 CONCLUSION

Thus,Yes BANK has been able to use technology to provide value-added service to its
customers during the last few years. For YES BANK, technology is an integral part of their
business. However, their overall progress could have been smoother but for certain internal
and extraneous factors and also a pressure on spread due to a competitive market. E-banking
has become a necessary survival weapon and is fundamentally changing the banking industry
worldwide. Today, the click of the mouse offers customers banking services at a much lower
cost and also empowers them with unprecedented freedom in choosing vendors for their
financial service needs. No country today has a choice- whether to implement E-banking or not
given the global and competitive nature of the economy. Yes BANK have to upgrade and
constantly think of new innovative customized packages and services to remain competitive.
The invasion of banking by technology has created an information age and commoditization of
banking services. Yes BANK have come to realize that survival in the new e-economy depends
on delivering some or all of their banking services on the Internet while continuing to support
their traditional infrastructure. The rise of E-banking is redefining business relationships and the
most successful banks will be those that can truly strengthen their relationship with their
customers. Without any doubt, the international scope of E-banking provides new growth
perspectives and Internet business is a catalyst for new technologies and new business
processes.

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 BIBLIOGRAPHY

Following sources have been sought for the preparation of this report:

Corporate Intranet

Financial Statements (Annual Reports)

CMA Data

Direct interaction with the employees of the company

Internet ----

o www.Yes bank schems.co.in

o www.scribd.com

www.indianpumpsindustry.com

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