PROJECT REPORT

FINANCIAL STATEMENT ANALYSIS

AT
AXIS BANK

INTRODUCTION
Finance is defined as the provision of money when it is required. Every enterprise needs finance
to start and carry out its operation. Finance is the life blood of an organization. So finance should
be managed effectively. Financial statements are prepared primarily for decision making.
Financial statement Analysis refers to the process of determining financial strength and weakness
of the firm by properly establishing strategic relationship between the items of the balance sheet
and profit and loss account. There are various methods and techniques used in analyzing
financial statement such as comparative statements, trend analysis, common size statement, fund
flow and cash flow analysis and ratio analysis. The analysis of financial statement is used for
decision making by various parties. Financial statement analysis is the process of reviewing and
analyzing the company's financial statements to make better economic decisions. It is used by a
variety of stakeholders. Every management aims to utilize its funds in a best possible and
profitable way. Profitability is a barometer for measuring efficiency and economic prosperity of
a business enterprise. To know whether the organization strategies is profitable or not, it is
necessary to have an analysis of financial statements of the company.

Financial Statements are prepared primarily for decision-making. They play a dominant role in
setting the framework of managerial decisions. But the information in the financial statement is
not an end in itself as no meaningful can be drawn from these statements alone.
The information provided in the financial statement is of immense use in making decisions
through analysis and interpretation of financial statements. The financial analysis is the process
of identifying the financial strength and weakness of the firm by properly establishing
relationship between the items of the balance sheet and P&L A/C.
There are various methods or techniques used in analyzing financial statement such as
comparative statement, trend analysis, common size statement, schedule of changes in working
capital, fund flow and cash flow analysis, cost volume profit analysis and “RATIO
ANALYSIS”.

Ratio analysis is one of the most powerful tools of financial analysis. It is a process of
establishing and interpreting various ratios that the financial statements can be analyzed more
clearly and decisions made from such analysis.
Just like a DOCTOR examines his patient by recording his body temperature, blood pressure etc.
before making his conclusion regarding the illness and before giving his treatment, a financial
analyst analysis the financial statement with various tools of analysis before commenting upon
the financial health or weaknesses of an enterprise.

A financial ratio is the relationship between two accounting figures expressed mathematically
ratio provide clues to the financial position of the concern. These are the pointers and indicators
of financial strength, soundness, position or weakness of an enterprise. One can draw
conclusions about the exact financial position of a concern with the help of ratios.
OBJECTIVES OF THE STUDY

The main objectives of this study are the following:-

 To study about AXIS Bank and its related aspects like its products & services,
history, organizational structure, subsidiary companies etc.
 To analyze the financial statement i.e. Profit & Loss account and Balance sheet of
AXIS Bank.
 To learn about Profit & Loss Account, Balance-sheet and different type of
Assets& Liabilities.
 To portray the financial position of AXIS Bank with the help of balance sheet and
profit and loss account.
 To evaluate the financial soundness, stability and liquidity of AXIS Bank.
NEED FOR THE STUDY

The analysis of financial Analysis of AXIS Bank is an attempt to assess the efficiency and
performance of the company.
To assess the efficiency and performance of the company it is necessary
1. To know earnings capacity of the company i.e., the profitability of the company.
2. To have a view of the company’s efficiency.
3. To know the comparative position in relation to previous year.
4. To have an idea about financial strength of the company.
5. To know the solvency of the company.
SCOPE OF THE STUDY

 Financial statement analysis is the process of reviewing and analyzing a company's

financial statements to make better economic decisions.

 These statements include the income statement, balance sheet, statement of cash flows,
and a statement of retained earnings
RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems. It is

necessary to know not only the research methods/ techniques but also the methodology. Research
methodology is a scientific study of various steps that are adopted in research problem.

Research:
Research can be defined as the search for knowledge, or as any systematic
investigation, with an open mind, to establish novel facts, usually using a scientific method. The
primary purpose for applied research is discovering, interpreting, and the development of
methods and systems for the advancement of human knowledge on a wide variety of scientific
matters of our world and the universe.

Research Design:
A design is used to structure the research, to show how all of the major parts of the
research project. Research design can be thought of as the structure of research- it is the “glue”
that holds all of the elements in a research project together. We often describe a design using a
concise notation that enables us to summarize a complex design structure efficiently.

Research Type:
Descriptive Research
Descriptive research is used to obtain information concerning the current status of the
phenomena to describe “what exists” with respect to variables or conditions in a situation.
Descriptive research, also known as statistical research, describes data and characteristics about
the population or phenomena being studied. Descriptive research answers the questions who,
what, where, when and how. In short descriptive research deals with everything that can be
counted and studied. The methodology involved in this design is mostly qualitative in nature
producing descriptive data.

Period of Study:
The study is related to the period from 2018-2023.
Types of Data:
While deciding about the method of data collection to be used for the study, the
researcher kept in mind for two types of data. They are:
a) Primary Data
b) Secondary Data
a) Primary data
In this study primary data is not required.
b) Secondary data
The secondary data are those financial Analyses which are collected from the company.

Research Instrument:
In this study the research, the researcher has used secondary data i.e., Annual
Report if AXIS Bank as research instrument.

Research Presentation:
After analysis of data, using various statistical techniques the findings and suggestions
are presented in the form of a report. To assist the understanding on findings and suggestion of
the study, various other details ranging from objective, need and research methodology to the
detailed presentation analysis is included in the report.
LIMITATION OF THE STUDY

However, the study is also hedged with some limitations. This study is based on
the secondary data. Naturally, the study would have the weakness of this type of data.
 Financial statement analysis tools have some inherent limitations of financial statements.
This study has also suffered from those limitations.
 The nature of financial Analysis is historical. Here, analysis and interpretation are made
on those historical data, which tells only about the past performance and the financial
weakness of the bank.
 Change in accounting procedure by a firm often makes ratio analysis misleading.
 The analysis and interpretation are based on secondary data contained in the published
annual reports of AXIS Bank for the study period.
 The study of financial performance can be only a means to know about the financial
condition of the company and cannot show a through picture of the activities of the
company.
 Further, the conclusions drawn from the study are applicable only to the AXIS \Bank and
not for other banks.