Yes Bank 200

Objective:-

The intent of financial statements is to provide information useful in economic decision making.
In particular, the data should be useful in making investment and credit decisions. Financial
statements should provide a reliable indication of a company's financial position, operating
results, and changes in financial position. Also, statement components and categories should aid
in decisions. Financial statements may provide information in addition to that specified by
authoritative requirements and regulatory groups. In as much as management knows the most
about the business, it is encouraged to identify certain circumstances and explain their financial
effects on the enterprise. Note that the Financial Accounting Standards Board (FASB) Statement
of Financial Accounting Concepts No. 1, "Objectives of Financial Statements," provides
reporting goals

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Banking Sector in India:-

Banking in India originated in the last decades of the 18th century. The oldest bank in existence
in India is the State Bank of India, a government-owned bank that traces its origins back to June
1806 and that is the largest commercial bank in the country. Central banking is the responsibility
of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the
then Imperial Bank of India, relegating it to commercial banking functions. After India's
independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the
government nationalized the 14 largest commercial banks; the government nationalized the six
next largest in 1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is
with the Government of India holding a stake), 31 private banks (these do not have government
stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They
have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by
ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively

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History:-
Yes Bank India, founded under the initiative of Rana Kapoor and Ashok Kapur, is known for
comprehensive banking and providing financial solutions to its customers. The main mission of
the Yes Bank in India is to establish a hi-tech driven private Indian bank catering to the needs of
the emerging India. The founders got the financial assistance from the Rabobank Nederland, the
world's only AAA rated private bank, and three respected global institutional private equity
investors, CVC Citigroup, AIF Capital and ChrysCapital. At present, Yes Bank India has forty
fully operational branches.

Activities:

The main feature that differentiates Yes Bank India in the banking industry is their use of
knowledge bankers who are industry experts in various sectors of Indian economy thereby
helping their valued customers with in-depth knowledge of these sectors. In general the products
and services offered by the Yes Bank are:

• Corporate and Institutional Banking

• Financial Markets
• Investment Banking
• Business and Transactional Banking
• Retail Banking
• Private Banking

The Yes Bank offers a package of value added services, known as the Yes Touch. This includes
International Debit Cards, 24 Hour ATM Access, Internet Banking, Mobile Banking, Payment -
Online Brokerage and Online Travel Booking.

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Company Profile:-
The Profile page of the company captures the details in brief on Company's Address, Top
management, Listings, Latest financial results in detail.

Registered & Corporate Office:-

Nehru Centre, 9th Floor,

Discovery of India, Dr. A B Road, Worli,

Mumbai, Maharashtra - 400018

Tel: 022-66699000
Fax: 022-24900314,
Email: [email protected]
Website: www.yesbank.in

Registrar & Share Transfer Agent:-

Karvy Computershare Private Ltd.

Plot No.17-24, Vittalrao Nagar,
Madhapur, Hyderabad – 500081
Andhra Pradesh.

Tel: 23420815 – 820

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Board Of Directors:-

S.No Name Designation

1 Mr. Berend Du Ron Alternate Director
2 Mr. S L Kapur Independent Director
3 Mr. Arun K Mago Independent Director
4 Mr. Ajay Vohra Independent Director
5 Mr. Bharat Patel Independent Director
6 Mr. Wouter Kolff Independent Director
7 Ms. Radha Singh Independent Director
8 Mr. Rana Kapoor Managing Director & CEO
9 Mr. Sipko Schat Nominee Director

Key Officials:-

Name Designation
Rana Kapoor Managing Director & CEO
Sanjeev Kapoor Executive VP & Co. Secretary

SHARE HOLDER PATTERN:-

Shareholding as on : 30/09/2009 30/06/2009 31/03/2009

Face Value 10.00 10.00 10.00

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No. Of Shares % HoldingNo. Of Shares % HoldingNo. Of Shares % Holding

PROMOTER'S HOLDING

Indian Promoters 93243005 31.27 91743005 30.88 96743005 32.58

Sub Total 93243005 31.27 91743005 30.88 96743005 32.58

NON PROMOTER'S HOLDING

Institutional Investors

Mutual Funds and UTI 22327048 7.49 21101975 7.10 5822843 1.96

Banks Fin. Inst. and

3731899 1.25 3383808 1.14 2829028 0.95
Insurance

FII's 141742189 47.54 136073997 45.80 148258551 49.92

Sub Total 167801136 56.28 160559780 54.05 156910422 52.84

Other Investors

Private Corporate Bodies 7484635 2.51 12096514 4.07 9622609 3.24

NRI's/OCB's/Foreign Others 1510654 0.51 1697026 0.57 1811037 0.61

Others 1709772 0.57 3113404 1.05 1368874 0.46

Sub Total 10705061 3.59 16906944 5.69 12802520 4.31

General Public 26421148 8.86 27871201 9.38 30522983 10.28

GRAND TOTAL 298170350 100.00 297080930 100.00 296978930 100.00

Capital Structure:-

From To Class Of Authorise Issued Paid Up Paid Paid

Year Year Share d Capital Capital Shares in Up Up
(Rs.Cr) (Rs.Cr) (Nos) Face Capital
Value (Rs.Cr)

2008 2009 Equity Share 400.00 296.98 296978930 10.00 296.98

2007 2008 Equity Share 400.00 295.79 295789750 10.00 295.79

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2006 2007 Equity Share 400.00 280.00 280000000 10.00 280.00

2005 2006 Equity Share 400.00 270.00 270000000 10.00 270.00

2003 2005 Equity Share 400.00 200.00 200000000 10.00 200.00

Annual Report: - (Rs in Cr.)

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sales 2,003.32 1,310.82 587.60 190.18 29.98

Other income 435.02 354.53 194.57 99.74 18.17

Employee Expenses 0.00 202.41 117.47 50.12 21.27

Other Expenses 418.55 138.75 76.03 36.00 18.67

Total interest 1,492.14 974.11 416.26 104.72 11.85

Gross profit 527.65 350.08 172.41 99.08 -3.64

Provisions Made 61.74 43.60 49.30 14.64 0.12

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Net depreciation 0.00 0.00 0.00 0.00 0.00

Total taxation 162.07 106.46 28.75 29.12 0.00

Extra ordinary item 0.00 0.00 0.00 0.00 0.00

Net profit / loss 303.84 200.02 94.36 55.32 -3.76

Prior year adjustment 0.00 0.00 0.00 0.00 0.00

Reserve written back 0.00 0.00 0.00 0.00 0.00

Equity capital 296.98 295.79 280.00 270.00 200.00

Equity Dividend Rate 0.00 0.00 0.00 0.00 0.00

Agg. Non-Promoter Shares (in Lacs) 2,002.36 1,953.19 1,795.29 1,657.50 957.50

Agg. Non-Promoter Holding (%) 67.42 66.03 64.12 61.39 47.88

Government Share 0.00 0.00 0.00 0.00 0.00

Capital Adequacy Ratio 16.63 13.64 13.56 16.43 18.81

EPS (in Rs.) 10.23 6.76 3.37 2.05 -0.19

Profit & Loss Account:- (Rs in Cr.)

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Income :

Operating Income 2,423.90 1,590.84 736.75 283.81 47.39

Expenses

Financial Expenses 1,492.14 974.11 416.26 104.72 11.85

Personnel Expenses 218.02 202.41 117.47 50.12 21.27

Selling Expenses 1.48 1.67 2.68 1.77 2.48

Administrative Expenses 226.01 133.61 65.38 35.90 14.94

Expenses Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenditure 1,937.65 1,311.80 601.79 192.51 50.54

Operating Profit 486.25 279.04 134.96 91.30 -3.15

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Other Recurring Income 34.54 74.53 45.44 6.14 0.78

Adjusted PBDIT 520.79 353.57 180.40 97.44 -2.37

Provisions Made 24.61 27.84 19.06 7.30 1.90

Depreciation 30.10 19.23 11.07 5.66 1.25

Other Write offs 0.00 0.00 0.00 0.00 0.00

Adjusted PBT 466.08 306.50 150.27 84.48 -5.52

Tax Charges 162.07 106.46 55.91 29.12 -1.79

Adjusted PAT 304.01 200.04 94.36 55.36 -3.73

Non Recurring Items -0.16 -0.01 0.00 -0.03 -0.02

Other Non Cash adjustments 0.00 0.00 0.00 0.00 0.00

Reported Net Profit 303.84 200.02 94.37 55.32 -3.76

Earnings Before Appropriation 548.92 305.32 132.10 51.57 -3.76

Equity Dividend 0.00 0.00 0.00 0.00 0.00

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Dividend Tax 0.00 0.00 0.00 0.00 0.00

Retained Earnings 548.92 305.32 132.10 51.57 -3.76

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Balance Sheet:-

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds
Owner's fund
Equity share capital 296.98 295.79 280.00 270.00 200.00
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 1,327.24 1,023.13 507.06 302.69 17.00
Loan funds
Secured loans - - - - -
Unsecured loans 16,169.42 13,273.16 8,220.39 2,910.38 663.03
Total 17,793.64 14,592.08 9,007.45 3,483.07 880.03
Uses of funds
Fixed assets
Gross block 194.88 133.01 86.66 36.24 17.59
Less : revaluation reserve - - - - -
Less : accumulated depreciation 64.15 35.73 17.38 6.81 1.25
Net block 130.73 97.28 69.28 29.43 16.34
Capital work-in-progress 0.39 3.89 1.59 5.29 3.30
Investments 7,117.02 5,093.71 3,073.12 1,350.14 394.86
Net current assets
Current assets, loans & advances 1,326.86 729.70 376.88 155.01 49.66
Less : current liabilities & provisions 2,918.10 1,404.13 1,228.68 214.72 28.40
Total net current assets -1,591.24 -674.42 -851.80 -59.71 21.26
Miscellaneous expenses not written - - - - -
Total 5,656.90 4,520.45 2,292.20 1,325.16 435.77
Notes:
Book value of unquoted investments - - - - -
Market value of quoted investments - - - - -
Contingent liabilities 43,481.94 68,874.54 52,061.58 17,524.20 6,522.22
Number of equity shares outstanding (Lacs) 2969.79 2957.90 2800.00 2700.00 2000.00

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Ratios:-

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Per share ratios
Adjusted EPS (Rs) 10.24 6.76 3.37 2.05 -0.18
Adjusted cash EPS (Rs) 11.25 7.41 3.77 2.26 -0.12
Reported EPS (Rs) 10.23 6.76 3.37 2.05 -0.18
Reported cash EPS (Rs) 11.24 7.41 3.77 2.26 -0.12

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Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Dividend per share - - - - -
Operating profit per share (Rs) 16.37 9.43 4.82 3.38 -0.15
Book value (excl rev res) per share (Rs) 1.33 1.18 28.11 21.21 10.85
Book value (incl rev res) per share (Rs.) 1.33 1.18 28.11 21.21 10.85
Net operating income per share (Rs) 81.62 53.78 26.31 10.51 2.37
Free reserves per share (Rs) 36.47 31.18 16.66 10.70 0.85
Profitability ratios
Operating margin (%) 20.06 17.54 18.31 32.16 -6.66
Gross profit margin (%) 21.77 22.00 23.40 30.17 -9.29
Net profit margin (%) 12.35 12.01 12.06 19.08 -7.80
Adjusted cash margin (%) 13.59 13.16 13.48 21.04 -5.17
Adjusted return on net worth (%) 18.71 15.16 11.99 9.66 -1.72
Reported return on net worth (%) 18.70 15.16 11.98 9.66 -1.73
Return on long term funds (%) 120.56 97.09 71.98 33.03 2.91
Leverage ratios
Long term debt / Equity - - - - -
Total debt/equity 9.96 10.06 10.44 5.08 3.06
Owners fund as % of total source 9.12 9.03 8.73 16.44 24.65
Fixed assets turnover ratio 12.44 11.96 8.50 7.83 2.69
Liquidity ratios
Current ratio 0.45 0.51 0.30 0.72 1.75
Current ratio (inc. st loans) 0.06 0.04 0.03 0.04 0.07
Quick ratio 5.14 7.92 5.74 12.34 30.00
Inventory turnover ratio - - - - -
Payout ratios
Dividend payout ratio (net profit) - - - - -
Dividend payout ratio (cash profit) - - - - -
Earning retention ratio 100.00 100.00 100.00 100.00 -
Cash earnings retention ratio 100.00 100.00 100.00 100.00 -
Coverage ratios
Adjusted cash flow time total debt 48.40 60.54 77.96 47.70 -
Financial charges coverage ratio 1.35 1.36 1.43 1.93 0.79
Fin. charges cov.ratio (post tax) 1.22 1.23 1.25 1.58 0.78
Component ratios
Material cost component (% earnings) - - - - -
Selling cost Component 0.06 0.10 0.36 0.62 5.23
Exports as percent of total sales - - - - -
Import comp. in raw mat. Consumed - - - - -
Long term assets / total Assets 0.84 0.87 0.89 0.89 0.89

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Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Bonus component in equity capital (%) - - - - -

Cash Flow:- (Rs in Cr.)

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Profit Before Tax 465.92 306.54 143.68 84.45 -5.58

Net Cash Flow-Operating Activity -364.59 -196.48 1,801.35 -165.96 -55.36

Net Cash Used In Investing Activity -60.20 -49.54 -1,222.69 -70.09 -108.61

Net Cash Used in Fin. Activity 719.93 580.74 498.60 398.61 217.00

Net Inc/Dec In Cash And Equivalent 295.14 334.73 1,077.26 162.55 53.03

Cash And Equivalent Begin of Year 1,627.57 1,292.84 215.58 53.03 0.00

Cash And Equivalent End Of Year 1,922.70 1,627.57 1,292.84 215.58 53.03

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RATIOS ANALYSIS:-
PROFITABILITY RATIO
A profitability ratio measures the degree of operating success of a company. The only reason
why investors are interested in a company is that they think they will earn a reasonable return in
the form of capital gain and dividends on their investments. The share holders will not be
interested in a company that does not earn sufficient margin on its sales. The failure to earn an
adequate rate of profit over a period will also drain the company’s cash and impair its liquidity.

Commonly used Profitability Ratios:-

• Profit margin ratio

• Asset turnover ratio

• Return on asset ratio

• Return on equity ratio

• Earnings per share ratio

• Gross Profit ratio

• Net profit ratio

1. PROFIT MARGIN RATIO:

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This ratio, also known as Return on sales (ROS), measures the amount of net profit earned by
each rupee of revenue. This indicates relationship between profit after tax and sales for the year.
This ratio indicates amount of net profit earned for each rupee of revenue.

Formula = Profit after Tax

Sales

Profit margin ratio in 2009 = 30384 = 12.53%

2423.90

Profit margin ratio in 2008 = 20002 = 12.57 %

1590.84

Profit margin ratio in 2007 = 9437 = 12.80 %

736.75

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Comment:-

The profit margin ratio of Yes Bank shows decrease, 12.80 % in 2007 to 12.57 %
in 2008. This ratio provides some indication of cut-off in profit margin of company. In the year
2009 the profit margin level of the company decreases more from the level of 2008. It decreases
from 12.57 of 2008 to the level of loss 12.53 in 2009. It is bad for company’s profit earning
capacity. It affects company’s credit in the market. The company has to take certain steps
immediately to improve their management, which lead the company to sufficient profit earning
level.

2. ASSETS TURNOVER RATIO:

This ratio measure firm’s efficiency in utilizing its assets. It indicates how many times the assets
were turned over in a period and there by generated sales. If assets turnover is high, the is
managing its assets efficiently. If it is low, it means the company has more assets then it really
needs for its operation. This ratio shows the firm’s ability in generation sales from all financial
resources committed total assets.

Formula= Sales______
Average Total Assets

Assets turnover ratio in 2009 = 2423.90 = 12.43 times

194.88

Assets turnover ratio in 2008 = 1590.84 = 11.96 times

133.01

Assets turnover ratio in 2007= 736.75 = 8.5 times

86.66

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Comment: -
In the year 2007, Yes Bank had sales of about Rs. 8.5 per rupee of investment in
assets as compare to about Rs. 11.96 in 2008. The increase of 3.46 in sales per rupee of
investment indicates significant improvement in utilization of assets in the year 2008. The higher
this ratio the greater is the efficiency with which the fix assets being used. This ratio also shows
increase in the year 2009 from the year 2008. It shows that company has made good use of their
Funds by utilizing them into assets. This ratio suggests that the company is utilizing its fixed
assets efficiently.

3. RETURN ON ASSETS /RETURN ON INVESTMENT:

This ratio measures profitability from a given level of investment. It is an excellent indicator of
overall performance of a company.

Formula= Profit after tax * 100

Average Total Assets

Return on assets /return on investment in 2009 = 30384 = 15.24%

19941.61

Return on assets /return on investment in 2008 = 20002 = 14.24%

14042.93

Return on assets /return on investment in 2007 = 9437 = 12.36 %

7632.99

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Average Total Assets = Current year’s total assets + Previous Year’s Total Assets
2

Average Total Assets In 2009 = 22900.80 + 16982.42 = 19941.61

2

Average Total Assets In 2007 = 16982.42 + 11103.44 = 14042.93

2

Average Total Assets In 2006 = 11103.44 + 4162.54 = 7632.99

2

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Comment:

This ratio shows overall performance of the company. We can see that it shows
increasing trend. The continuous increase in the ratio describes that the investments made by the
company is not going in the profitable manner for the company. It shows that the company’s
performance is decrease in the no. of years.

4. RETURN ON EQUITY:

This ratio measures profitability from the stand point of the company’s share holders. It
measures the efficiency with which share holders funds are employed in order to moderate the

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influence of share holders transactions such as share issue, buy back and retained earnings,
analysts generally use the average of beginning and ending amounts of the year.

Formula= Profit after Tax

Average shareholder’s equity

Return on equity in 2009 = 30384 = 37.41

812.11

Return on equity in 2008= 20002 = 30.33

659.46

Return on equity in 2007= 9437 = 23.98

393.53

ReturnOn Equity
40

35

30

25

20
Return On Equity
15

10

0
Jan-07 Jan-08 Jan-09

Comment:-

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Shareholders expect managers to earn an ROE higher than the firm’s cost of capital.
The ROE of firms in an industry tends to be driven closer to the industry mean over time. From
the year 2007 to 2008, Yes Bank’s ROE increased. It increases on continues basis. It will create
the good impression of company in the mind of the shareholder. It continually shows increasing
trend also in the year 2009. Shareholders invests in the company with keep in their mind that to
earn some profit. This continually increase the interest of shareholder to invest in the company.

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5. EARNING PER SHARE:-

Financial analysts regard the earning per share (EPS) as an important measure of profitability.
EPS is useful in comparing performance over time. But it is not of much help in making
comparisons across firms because the no. of equity shares can differ even if all of them have
identical amount of share holder’s equity. It is useful as an input into the price earning ratio.

Formula= Profit After Tax

No. of equity Shares

Earnings per share in 2009= 30384 = 10.23

2969

Earnings per share in 2008 = 20002 = 6.76

2958

Earnings per share in 2007 = 9437 = 3.37

2800

EarningPer Share
12

10

6
Earning Per Share
4

0
Jan-07 Jan-08 Jan-09
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Comment:-

This ratio shows the profitability of the firm from the owner’s point of view. In the
year 2007, EPS is Rs. 3.37 but then after the EPS ratio has increasing trend and it reach at Rs.
10.23 in the year 2009. This financial position of the company shows a considerable increase
from its position of the previous year. The EPS capacity of company increase more in the year
2009 compare to the year 2008. The overall financial position of the company is satisfactory. It
increases the attraction of shareholders to invest in the company. It also affects the current
market price of the share in the share market. As we have shown in the past, the high EPS always
attracts the investors to invest in company’s share.

GROSS PROFIT RATIO:-

This ratio is found out to know the gross profit margin in respect to sales. This is used to know
how much the firm is earning for the specific level of sales.

Formula= Gross Profit * 100

Sales

Gross Profit Ratio in 2009 = 527.65 * 100 = 21.77%

2423.90

Gross Profit Ratio in 2008 = 350.08 * 100 = 22%

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1590.84

Gross Profit Ratio in 2007 = 172.41 * 100 = 23.40%

736.75

Grossprofit
24

23.5

23

22.5

22 Gross profit

21.5

21

20.5
Jan-07 Jan-08 Jan-09

Comment:

Here gross profit of the firm is decreasing from the year 2007 to 2008. But after 2008 gross profit again
start to increase in the year 2009, but at the decreasing rate. The increase in the ratio is low compared to
decrease in the ratio. This shows that firm’s earnings are not in respect to sales.

LIQUIDITY RATIO:

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Liquidity is the ability of a business to meet its short-term obligations when they fall due. An
enterprise should have enough cash and other current assets which can be converted into cash, so
that it can pay its suppliers and lenders on time. The most commonly used ratios are:

• Current ratio

• Quick ratio

• Debtor turnover ratio

• Inventory turnover ratio

1. CURRENT RATIO:-

This is the ratio of current assets to current liabilities. It is a widely used indicator of a
company’s ability to pay its debts in the short term. It shows the amount of current assets a
company has per rupee of current liabilities.

Formula= Current assets

Current liabilities

Current ratio in 2009 = 1,326.86 = 0.45

2,918.10

Current ratio in 2008 = 729.70 = 0.52

1,404.13

Current ratio in 2007 = 376.88 = 0.30

1,228.68

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CurrentRatio
0.6

0.5

0.4

0.3
Current Ratio
0.2

0.1

0
31/3/2009 31/3/2008 31/3/2007

Comment:-

The Current ratio indicates the working position of the company. There has been
considerable deterioration in the current ratio of the company from 2008 to 2009. As we have
seen on one hand current assets and current liabilities both are increasing. The decrease in
current ratio means, that in the year 2009 compared to 2008 the company had less current assets
to meet its current liabilities. As shown that the decrease in the year 2009 is less as compared to
increase in the year 2008. The situation of working capital of the company is more declined year
to year. If immediate steps are not to be taken by the company to remedy the situation, the
company will be put into considerable trouble.

2. QUICK RATIO/ACID TEST RATIO:

The quick ratio or acid test ratio is computed as a supplement to the current ratio. This ratio
relates relatively more liquid current assets, usually current assets less inventories, to current
liabilities. All current assets are not equally liquid. While cash is readily available to make

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payments to suppliers and debtors can be quickly converted into cash, inventories are two steps
away from conversion into cash. Thus, a large current ratio by itself is not a satisfactory measure
of liquidity when inventories constitute a major part of the current assets.

Formula= Quick assets (current assets-stock-debtors)

Current Liabilities

Quick ratio in 2009 = 1,326.86 = 0.45

2,918.10

Quick ratio in 2008 = 729.70 = 0.52

1,404.13

Quick ratio in 2007 = 376.88 = 0.30

1,228.68

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QuickRatio
0.6

0.5

0.4

0.3
Quick Ratio
0.2

0.1

0
31/3/2009 31/3/2008 31/3/2007
Comment:-

Company’s inventories drove the improvement in the current ratio of the company.
Once, we remove them there is no change in the liquidity measure of the company. As we have
seen in the year 2008, there is a continuous decrease. It shows that the company’s liquidity is
continually decreases. The more cash in the company shows more liquidity of the company. We
show that ratio is in the decreasing trend. It also describes the less liquidity of cash in the
company. In the year 2008 ratio is more compared to 2007 but it again decreases in the year
2009.

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DEBTORS TURNOVER RATIO:-

The debtor turnover ratio measures efficacy of a firm’s credit and collection policy and shows
the no. of times each year the debtors turn into cash. It provides some indication of the quality of
a firm’s debtors and collection efforts. High debtor turnover indicates that debtors are being
converted rapidly into cash and the quality of the company portfolio of debtor is good. The
ability of a company to collect credit from its customer in a prompt manner enhances its
liquidity. Debtor turnover is the ratio of sales to average debtors.

Formula= Credit sales

Avg. debtors

3. PRICE-TO-BOOK RATIO:-

This ratio measures and compares the market price of company’s share with its book value. Book
value is equal to the amount of share holders equity divided by the no. of shares.

Formula = Market price per share

Book value per share

Price-to-book ratio in 2009 = 296.98 = 29.69

10.00

Price-to-book ratio in 2008 = 295.79 = 29.57

10.00

Price-to-book ratio in 2006 = 280.00 = 28.00

10.00

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Price-To-BookRatio
30

29.5

29

28.5
Price-To-Book Ratio
28

27.5

27
31/3/2009 31/3/2008 31/3/2007

Comment:
The low price to book ratio is often seen as an indication of under pricing of the
stock. A price to book ratio of more than one means that the market expects the stock to earn at a
rate higher than the required note. Both the profit earning and profit bearing ratios are affected
by the choice of accounting methods since the denominator is an accounting variable. This ratio
shows decreasing trend. It continually increases from 28 to 29.57 and from 29.57 to 29.69.

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Du Pont Chart:-
Income Statement

Sales
Gross Profit

Other Earnings
Net Profit EBIT EBIT on
Income before
Assets
interest
& taxes
Sales Total
COGS (EBIT)
Operating Assets
Expenses

G&A Interest Paid

Profit Return
Margin on Equity
Depreciation Taxes

Other
Expense

Assets

Cash

Sales
Receivables Assets
Fixed Turnover
Assets
Total Assets
Inventory
Current
Working

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Other Assets Assets Capital

Current
Liabilities

Liabilities & Equity

Payables
Current
Liabilities
Total
Notes Liabilities Total Leverage
Payables
Non-
Current
Liabilities
Other
Liability Beginning
Ending Net Worth
Capital Net Worth

Retained
Earnings

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MULTI-STEP PROFIT AND LOSS ACCOUNT

(Rs. in Cr)

PARTICULARS 2009 2008 2007

Gross Sales 2,423.90 1,590.84 736.75
Less: Excise duty 0.00 0.00 0.00
NET ASSET 5,656.90 4,520.45 2,292.20
ADD: other income 34.54 74.53 45.44
GROSS PROFIT 5691.44 4594.98 2337.64
Less: C.O.G.S 0.00 0.00 0.00
Goods purchase for resale 0.00 0.00 0.00
Personnel(employee)cost 218.02 202.41 117.47
Manufacturing administration & other expenses 1719.63 1109.39 484.32
PBDIT 520.79 353.57 180.40
Less: Interest 0.00 0.00 0.00
PBDT 520.79 353.57 180.40
Less: Depreciation & Amortization 30.10 19.23 11.07
PBT before exceptional items 490.69 334.34 169.33
Less: Exceptional items 0.00 0.00 0.0
PBT 466.08 306.50 150.27
Taxation:
Current Tax 162.07 106.46 55.91
Deferred tax 0.00 0.00 0.00
Fringe benefit tax 0.00 0.00 0.00
Add: Income tax for earlier year 162.07 106.46 55.91
304.01 200.04 94.36
PAT 162.07 106.46 55.91

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COMMON-SIZED BALANCE – SHEET

(Rs. in Cr)

PARTICULARS 31-03-2009 % 31-03-2008 % 31-03- %

2007
Sources of Funds
Shareholders’ Funds:
Share capital 296.98 1.67 295.79 2.03 280.00 3.10
Reserves & surplus 1,327.24 7.46 1,023.13 7.01 507.06 5.63
1624.22 9.13 1318.92 9.04 787.06 8.74
Loan Funds :
Secured loan - - -

Unsecured loan 16,169.42 90.87 13,273.16 90.96 8,220.39 91.26

17793.64 100 14592.08 100 9007.45 100

Application of
fund
Fixed assets:
Gross Block 194.88 2.81 133.01 2.43 86.66 3.23
Less: Depreciation 64.15 0.92 35.73 0.65 17.38 0.66
Net Block 130.73 1.88 97.28 1.78 69.28 2.64
Capital work-in- 0.39 0.005 3.89 0.07 1.59 0.06
progress
131.12 1.89 101.17 1.85 70.87 2.64
Investments: 7,117.02 102.63 5,093.71 92.96 3,073.12 117.34

Current
Assets/loans/advances:
Cash and Bank 1,277.72 18.42 959.24 17.50 389 .76 14.88
balances
current Assets, Loans 19.13 729.70 13.32 376.88 14.05
1,326.86
and Advances
2604.58 37.55 1688.94 30.82 766.64 28.58
Less: Current 2,918.10 42.08 1,404.13 25.62 1,228.68 45.81
liabilities and
Provisions
Net current Assets 6934.62 100 5479.69 100 2681.95 100
Miscellaneous _ _ _ _ _ _

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Expenses

COMMON SIZED PROIFT & LOSS ACCOUNT

(Rs. in Cr)

INCOME 2009 % 2008 % 2007 %

Net sales 2,423.90 133.12 1,590.84 132.35 736.75 139.09
Other income 34.54 1.89 74.53 6.20 45.44 8.57
TOTAL (A) 2458.44 135.02 1665.37 138.55 782.19 147.67

EXPENDITURE

Personnel cost 218.02 11.97 202.41 16.84 117.47 22.17

Selling & general 227.49 12.49 135.28 11.25 68.06 12.85

expenses
Depreciation & 30.10 1.65 19.23 1.60 11.07 2.09
Amortization
expenses
TOTAL (B) 475.61 26.12 356.92 29.69 196.6 37.12

PBT (A-B) 1982.83 108.90 1308.45 108.86 585.59 110.55

Less: Income Tax 162.07 8.90 106.46 8.86 55.91 10.55

PAT 1820.76 100 1201.99 100 529.68 100

Add: income tax 0.00 0.00 0.00 0.00 0.00 0.00

for earlier year
Balance 0.00 0.00 0.00 0.00 0.00 0.00
transferred from
previous year
Total available for 1820.76 100 1201.99 100 529.68 100
appropriation

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ANALYTICAL BALANCE SHEET

(Rs. in Cr)

PARTICULARS 2008-09 2007-08 2006-07

APPLICATION OF FUNDS:

FIXED ASSETS
Gross Block: 194.88 133.01 86.66
Less: Accumulated Depreciation. 64.15 35.73 17.38
Net Block 130.73 97.28 69.28
Capital work-in-progress 0.39 3.89 1.59
131.12 101.17 70.87
INVESTMENT 7,117.02 5,093.71 3,073.12

CURRENT ASSETS, LOANS &

1,326.86 729.70 376.88
ADVANCES

LESS: CURRENT LIABILITIES & PROVISIONS 2,918.10 1,404.13 1,228.68

NET CURRENT ASSETS -1,591.24 -674.42 -851.80

TOTAL ASSETS 5656.9 4,520.46 2,292.20

LESS: LOAN FUNDS & OTHERS
Secured loans - - -
Unsecured loans 16,169.42 13,273.16 8,220.39

+ deferred tax liabilities - - -

4032.68 3201.54 1505.14
1624.22 1318.92 787.06
REPRESENTED BY :
Share Capital 296.98 295.79 280.00
Reserves & Surplus 1,327.24 1,023.13 507.06
1624.22 1318.92 787.06
EQUITY OWNER’S FUND

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HORIZONTAL PROFIT AND LOSS ACCOUNT

ANALYSIS

Particulars 2009 Increase / 2008 Increase/ 2007

(Rs. in Decrease (Rs. in Decrease (Rs. in
Cr) over 2007 Cr) over 2007 Cr)
(%) (%)

Gross Sales 2,423.90 228.99 1,590.84 115.93 736.75

Less: Excise duty 0.00 0.00 0.00
NET ASSET 5,656.90 146.79 4,520.45 97.21 2,292.20
ADD: other income 34.54 (76.01) 74.53 64.01 45.44
GROS PROFIT 5691.44 143.46 4594.98 96.56 2337.64
Less: C.O.G.S 0.00 - 0.00 - 0.00
Goods purchase for resale 0.00 - 0.00 - 0.00
Personnel(employee)cost 218.02 85.59 202.41 72.30 117.47
Manufacturing 1719.63 255.06 1109.39 129.06 484.32
administration & other
expenses
PBDIT 520.79 188.68 353.57 195.99 180.40
Less: Interest 0.00 - 0.00 - 0.00
PBDT 520.79 188.68 353.57 195.99 180.40
Less: Depreciation & 30.10 171.90 19.23 73.71 11.07
Amortization
PBT before exceptional 490.69 189.78 334.34 197.45 169.33
items
Less: Exceptional items 0.00 - 0.00 - 0.0
PBT 466.08 189.78 306.50 197.45 150.27
Taxation:
Current Tax 162.07 189.87 106.46 90.41 55.91

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Deferred tax 0.00 - 0.00 - 0.00
Fringe benefit tax 0.00 - 0.00 - 0.00
162.07 189.87 106.46 90.41 55.91
PAT 304.01 222.18 200.04 111.99 94.36

HORIZONTAL BALANCE SHEET

ANALYSIS
PARTICULARS 31-03-2009 Increase / 31-03-2008 Increase / 31-03-2007
(Rs. in Cr) Decrease (Rs. in Cr) Decrease (Rs. in Cr)
over over
2007(%) 2007(%)
Sources of Funds
Shareholders’ Funds:
Share capital 296.98 6.06 295.79 5.64 280.00
Reserves & surplus 1,327.24 161.75 1,023.13 101.77 507.06

Loan Funds :
Secured loan - - - -
Unsecured loan 16,169.42 96.69 13,273.16 61.466 8,220.39

Deferred tax liability 0.00 - 0.00 - 0.00

Application of
fund
Fixed assets:
Gross Block 194.88 124.88 133.01 53.48 86.66
Less: Depreciation 30.10 172.64 19.23 74.18 11.07
Net Block 130.73 88.69 97.28 40.41 69.28
Capital work-in- 244.65 1.59
0.39 (24.52) 3.89
progress

Investments: 7,117.02 131.60 5,093.71 65.75 3,073.12

Current 193.62 376.88
1,326.86 252.06 729.70
Assets/loans/advances:
Sundry debtors 0.00 - 0.00 - 0.00

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Cash and Bank 1,277.72 227.82 959.24 146.11 389.76
balances
Other current Assets 1,326.86 252.06 729.70 193.62 376.88

Less: Current 2,918.10 137.49 1,404.13 14.28 1,228.68

liabilities and
Provisions

Net current Assets -1,591.24 86.80 -674.42 (79.18) -851.80

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