PROJECT REPORT

ON
A STUDY ONFUNCTIONAL SPECIALIZATION PROJECT ON RATIO ANALYSIS
WITH REFERANCE TO AXIS BANK PVT LTD

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

MASTER OF MANAGEMENT STUDIES
(University of Mumbai)
Batch 2023 – 2024
Submitted By
Apeksha Vasant Pawar
Roll No: - SSJCET22031
SEMISTER – IV
Submitted to
MS. NILAM MADAR

SHIVAJIRAO S. JONDHALE COLLEGE OF ENGINEERING

AND TECHNOLOGY, ASANGAON

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 CERTIFICATE

This is to certify that project report on “A STUDY ON RATIO ANALYSIS WITH

REFERANCE TO AXIS BANK PVT LTD” Is successfully completed by MS. APEKSHA
VASANT PAWAR
During semester third, in partial fulfillment of the master’s degree in management studies
Recognized by the University of Mumbai for the academic year 2023 – 2024, through.
SHIVAJIRAO S. JONDHALE COLLEGE OF ENGINEERING AND TECHNOLOGY,
ASANGAON
This project work is original and not submitted earlier for the award of any degree /diploma
Or associateship of any other University /Institution.

Project Guide Principal

Mrs. Nilam Madar Dr. Mrs. Geetha k. Jayraj

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 DECLARATION

I hereby declare that this project report on “A STUDY ON RATIO ANALYSIS WITH
REFERANCE TO AXIS BANK PVT LTD“is submitted by me to SHIVAJIRAO S.
JONDHALE COLLEGE OF ENGINEERING AND TECHNOLOGY, ASANGAON. Is
a Bonafede work undertaken by me and it is not submitted to any other University or
Institution for the award of any degree/diploma certificate published any time before

Date: Apeksha Vasant Pawar

Place: SSJCET22031

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 ACKNOLEDGEMENT

It gives me an immense pleasure to present this project on

“A STUDY ON RATIO ANALYSIS WITH REFERANCE TO AXIS BANK PVT LTD”
I would like to thank our principal DR. GEETHA S. JAYARAJ for giving me an
opportunity to present this project.
I would like to express deepest gratitude and thanks to professor and project guide Ms.
NILAM MADAR for her valuable support and invaluable suggestion in doing this project,
without her efforts the completion of this project would be practically impossible, she has
been a source of encouragement and guidance in all our endeavors.
I would like to thank our librarian for rendering books and I thank all our faculties and my
colleagues.
I am thankful to them. Secondly, I would also like to thank my parents and friends who
helped me a lot in finalizing this project within the limited time frame.

(APEKSHA VASANT PAWAR)

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 EXECUTIVE SUMMARY

The project report entitled “Ratio analysis in financial accounting with special reference to
the axis bank private limited, murbad the various factors concern towards the analysis of ratio
at axis bank.

The analysis has been made mainly based on primary data as well as secondary data from the
organization and also concern with the personal experience during the period of project he
researcher has taken a opinion by survey method

The study gives the information all about ratio analysis of the axis bank limited which
includes financial transactions, analysis of balance sheet, profit and loss accounts, income
statement, cash flow, and the financial statement etc.
Ratio analysis is the analysis of the bank past position to banks current position by
calculating its different type of ratios such as current ratio, quick ratio, turnover ratio, net
ratio and so on.
This include all the transaction in any organization where all the transaction are mentioning
over one sheet that shows profit and loss, cash flow and the income statement and financial
statement of the company. It has its particular period of a time in which use to calculated. it
is calculated by the help of balance sheet and the profit and loss accounts. Financial
statements are the record of all the financial transaction calculate on yearly bases

The study gives ratio analysis performance of the company. gives the information about the
company or organization profit and loss by the observation of all the finances of the company

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 INDEX

Sr No. TITLE Pg No.

1 Executive summary 5
2 Introduction 7-16
3 Company profile 17-22
4 Objectives of study 23-25
5 Literature review 26-30
6 Research methodology 31-33
7 Interpretation of data 35-48
8 Limitation of study 49-50
9 Finding and suggestions 51-54
10 Conclusion 55-56
11 Bibliography 57

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 CHAPTER 1

INTRODUCTION

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INTRODUCTION
Financial ratios our Widely used for modelling purpose both by both by the practitioners
and researchers. the fonn involves the many interest in parties like the owners
management personal, suppliers, competitors, regulatory agencies and academics each
having their view in applying financial statement analysis in their evolutions
practitioners the financial ratios for instance to forecast the future success of the
companies while the researchers main interest has been to develop model exploiting this
ratios we need area of research involving the finance the historical observe the several
major themes in the financial analysis literature there is overlapping in the over slab
themes and they do not necessary coincide with that theoretically might be the best
founded areas .
Financial Management is the specific area of finance dealing with the financial decision
corporations make and the tool and analysis used to make the decisions the disciplines as
a whole may be divided between long term and short term decisions and techniques both
share the same goal of enhancing form value by ensuring that the return on capital
exceeds cost of capital without taking extensive financial risks.
Before understanding the meaning of analysis of financial statements it is necessary to
understand the meaning of analysis and financial statements.
Analysis means the establishing a meaningful relationship between various items of the
two financial statements with each of other in such a way that a conclusion is drawn by
financial statements be mean to statements first profit and loss accounts and second
balance sheet this are the prepare at the end ofgiven period of time they are indicators
ofprofit ability and financial soundness of the business concerns.
Thus analysis of financial statements means the establishing meaningful relationship
between various items of the two financial statements that is the income statements and
position statement.
After preparation of the financial statements, one may be interested in a novel the positions
Of an enterprise from different points of view this can be done by analysing the financial
statement with the help of different tools of the analysis as the ratio analysis åinds flow
analysis each cash flow analysis comparative statement analysis et cetera hair I have done
financial analysis by ratios in this process a meaningful relationship is established between
two or more accounting
Ratio analysis is a quantitative method of gaining insight into a company's liquidity,
operational efficiency, and profitability by studying its financial statements such as the
balance sheet and income statement. Ratio analysis is a cornerstone of fundamental equity
analysis.
Investors and analysts employ ratio analysis to evaluate the financial health of companies by
scrutinizing past and current financial statements. Comparative data can demonstrate how a
company is performing over time and can be used to estimate likely future performance.
This data can also compare a company's financial standing with industry averages while
measuring how a company stacks up against others within the same sector.

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Investors can use ratio analysis easily, and every figure needed to calculate the ratios is
found on a company's financial statements.

Ratios are comparison points for companies. They evaluate stocks within an industry.
Likewise, they measure a company today against its historical numbers. In most cases, it is
also important to understand the variables driving ratios as management has the flexibility
to, at times, alter its strategy to make it's stock and company ratios more attractive.
Generally, ratios are typically not used in isolation but rather in combination with other
ratios. Having a good idea of the ratios in each of the four previously mentioned categories
will give you a comprehensive view of the company from different angles and help you spot
potential red flags.

Types of Ratio Analysis

The various kinds of financial ratios available may be broadly grouped into the following six
silos, based on the sets of data they provide:

1. Liquidity Ratios
Liquidity ratios measure a company's ability to pay off its short-term debts as they become
due, using the company's current or quick assets. Liquidity ratios include the current ratio,
quick ratio, and working capital ratio.

2. Solvency Ratios
Also called financial leverage ratios, solvency ratios compare a company's debt levels with
its assets, equity, and earnings, to evaluate the likelihood of a company staying afloat over
the long haul, by paying off its long-term debt as well as the interest on its debt. Examples of
solvency ratios include: debt-equity ratios, debt-assets ratios, and interest coverage ratios.

3. Profitability Ratios
These ratios convey how well a company can generate profits from its operations. Profit
margin, return on assets, return on equity, return on capital employed, and gross margin
ratios are all examples of profitability ratios.

4. Efficiency Ratios
Also called activity ratios, efficiency ratios evaluate how efficiently a company uses its
assets and liabilities to generate sales and maximize profits. Key efficiency ratios include:
turnover ratio, inventory turnover, and days' sales in inventory.

5. Coverage Ratios
Coverage ratios measure a company's ability to make the interest payments and other
obligations associated with its debts. Examples include the times interest earned ratio and
the debt-service coverage ratio.

6. Market Prospect Ratios

These are the most commonly used ratios in fundamental analysis. They include dividend
yield, P/E ratio, earnings per share (EPS), and dividend payout ratio. Investors use these
metrics to predict earnings and future performance.

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For example, if the average P/E ratio of all companies in the S&P 500 index is 20, and the
majority of companies have P/Es between 15 and 25, a stock with a P/E ratio of seven would
be considered undervalued. In contrast, one with a P/E ratio of 50 would be considered
overvalued. The former may trend upwards in the future, while the latter may trend
downwards until each aligns with its intrinsic value.

The fundamental basis of ratio analysis is to compare multiple figures and derive a
calculated value. By itself, that value may hold little to no value. Instead, ratio analysis must
often be applied to a comparable to determine whether or a company's financial health is
strong, weak, improving, or deteriorating.

Ratio Analysis Over Time

A company can perform ratio analysis over time to get a better understanding of the
trajectory of its company. Instead of being focused on where it is today, the company is
more interested n how the company has performed over time, what changes have worked,
and what risks still exist looking to the future. Performing ratio analysis is a central part in
forming long-term decisions and strategic planning.

To perform ratio analysis over time, a company selects a single financial ratio, then
calculates that ratio on a fixed cadence (i.e. calculating its quick ratio every month). Be
mindful of seasonality and how temporarily fluctuations in account balances may impact
month-over-month ratio calculations. Then, a company analyzes how the ratio has changed
over time (whether it is improving, the rate at which it is changing, and whether the
company wanted the ratio to change over time).

Ratio Analysis Across Companies

Imagine a company with a 10% gross profit margin. A company may be thrilled with this
financial ratio until it learns that every competitor is achieving a gross profit margin of 25%.
Ratio analysis is incredibly useful for a company to better stand how its performance
compares to similar companies.

To correctly implement ratio analysis to compare different companies, consider only

analyzing similar companies within the same industry. In addition, be mindful how different
capital structures and company sizes may impact a company's ability to be efficient. In
addition, consider how companies with varying product lines (i.e. some technology
companies may offer products as well as services, two different product lines with varying
impacts to ratio analysis).

Ratio Analysis Against Benchmarks

Companies may set internal targets for their financial ratios. These calculations may hold
current levels steady or strive for operational growth. For example, a company's existing
current ratio may be 1.1; if the company wants to become more liquid, it may set the internal
target of having a current ratio of 1.2 by the end of the fiscal year.

Benchmarks are also frequently implemented by external parties such lenders. Lending
institutions often set requirements for financial health as part of covenants in loan
documents. Covenants form part of the loan's terms and conditions and companies must
maintain certain metrics or the loan may be recalled.

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If these benchmarks are not met, an entire loan may be callable or a company may be faced
with an adjusted higher rate of interest to compensation for this risk. An example of a
benchmark set by a lender is often the debt service coverage ratio which measures a
company's cash flow against it's debt balances.

Examples of Ratio Analysis in Use

Ratio analysis can predict a company's future performance—for better or worse. Successful
companies generally boast solid ratios in all areas, where any sudden hint of weakness in
one area may spark a significant stock sell-off. Let's look at a few simple examples

Net profit margin, often referred to simply as profit margin or the bottom line, is a ratio that
investors use to compare the profitability of companies within the same sector. It's
calculated by dividing a company's net income by its revenues. Instead of dissecting
financial statements to compare how profitable companies are, an investor can use this ratio
instead. For example, suppose company ABC and company DEF are in the same sector with
profit margins of 50% and 10%, respectively. An investor can easily compare the two
companies and conclude that ABC converted 50% of its revenues into profits, while DEF
only converted 10%.

Using the companies from the above example, suppose ABC has a P/E ratio of 100, while
DEF has a P/E ratio of 10. An average investor concludes that investors are willing to pay
$100 per $1 of earnings ABC generates and only $10 per $1 of earnings DEF generates.

What Are the Types of Ratio Analysis?

Financial ratio analysis is often broken into six different types: profitability, solvency,
liquidity, turnover, coverage, and market prospects ratios. Other non-financial metrics may
be scattered across various departments and industries. For example, a marketing department
may use a conversion click ratio to analyze customer capture.

Ratio analysis is important because it may portray a more accurate representation of the state
of operations for a company. Consider a company that made $1 billion of revenue last
quarter. Though this seems ideal, the company might have had a negative gross profit
margin, a decrease in liquidity ratio metrics, and lower earnings compared to equity than in
prior periods. Static numbers on their own may not fully explain how a company is
performing.

Consider the inventory turnover ratio that measures how quickly a company converts
inventory to a sale. A company can track its inventory turnover over a full calendar year to
see how quickly it converted goods to cash each month. Then, a company can explore the
reasons certain months lagged or why certain months exceeded expectations.

There is often an overwhelming amount of data and information useful for a company to
make decisions. To make better use of their information, a company may compare several
numbers together. This process called ratio analysis allows a company to gain better insights
to how it is performing over time, against competition, and against internal goals. Ratio
analysis is usually rooted heavily with financial metrics, though ratio analysis can be
performed with non-financial data.

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Ratio analysis is a technique for evaluating financial statements or, to say, for detailed
analysis of the financial statements presented by the firm. The analysis or evaluation is done
to form an opinion about the various aspects of the organization, like profitability, short and
long-term liquidity, efficiency, potential, etc. Moreover, this analysis is done and utilized by
both internal and external stakeholders. Internal stakeholders primarily include managers.
External stakeholders include creditors, investors, lenders, etc.
Financial ratios are created with the use of numerical values taken from financial
statements to gain meaningful information about a company. The numbers found on a
company’s financial statements – balance sheet, income statement, and cash flow statement –
are used to perform quantitative analysis and assess a company’s liquidity, leverage, growth,
margins, profitability, rates of return, valuation, and more.
Determining individual financial ratios per period and tracking the change in their values
over time is done to spot trends that may be developing in a company. For example, an
increasing debt-to-asset ratio may indicate that a company is overburdened with debt and
may eventually be facing default risk.

Comparing financial ratios with that of major competitors is done to identify whether a
company is performing better or worse than the industry average. For example, comparing
the return on assets between companies helps an analyst or investor to determine which
company is making the most efficient use of its assets.

Users of financial ratios include parties external and internal to the company:

 External users: Financial analysts, retail investors, creditors, competitors, tax

authorities, regulatory authorities, and industry observers
 Internal users: Management team, employees, and owners
Liquidity Ratios

Liquidity ratios are financial ratios that measure a company’s ability to repay both short- and
long-term obligations. Common liquidity ratios include the following:

The current ratio measures a company’s ability to pay off short-term liabilities with current
assets:

Current ratio = Current assets / Current liabilities

The acid-test ratio measures a company’s ability to pay off short-term liabilities with quick
assets:

Acid-test ratio = Current assets – Inventories / Current liabilities

The cash ratio measures a company’s ability to pay off short-term liabilities with cash and
cash equivalents:

Cash ratio = Cash and Cash equivalents / Current Liabilities

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The operating cash flow ratio is a measure of the number of times a company can pay off
current liabilities with the cash generated in a given period:

Operating cash flow ratio = Operating cash flow / Current liabilities

Leverage Financial Ratios

Leverage ratios measure the amount of capital that comes from debt. In other words, leverage
financial ratios are used to evaluate a company’s debt levels. Common leverage ratios include
the following:

The debt ratio measures the relative amount of a company’s assets that are provided from
debt:

Debt ratio = Total liabilities / Total assets

The debt to equity ratio calculates the weight of total debt and financial liabilities against
shareholders’ equity:

Debt to equity ratio = Total liabilities / Shareholder’s equity

The interest coverage ratio shows how easily a company can pay its interest expenses:

Interest coverage ratio = Operating income / Interest expenses

The debt service coverage ratio reveals how easily a company can pay its debt obligations:

Debt service coverage ratio = Operating income / Total debt service

Efficiency Ratios

Efficiency ratios, also known as activity financial ratios, are used to measure how well a
company is utilizing its assets and resources. Common efficiency ratios include:

The asset turnover ratio measures a company’s ability to generate sales from assets:

Asset turnover ratio = Net sales / Average total assets

The inventory turnover ratio measures how many times a company’s inventory is sold and
replaced over a given period:

Inventory turnover ratio = Cost of goods sold / Average inventory

The accounts receivable turnover ratio measures how many times a company can turn
receivables into cash over a given period:

Receivables turnover ratio = Net credit sales / Average accounts receivable

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The days sales in inventory ratio measures the average number of days that a company holds
on to inventory before selling it to customers:

Days sales in inventory ratio = 365 days / Inventory turnover ratio

Profitability Ratios

Profitability ratios measure a company’s ability to generate income relative to revenue,

balance sheet assets, operating costs, and equity. Common profitability financial ratios
include the following:

The gross margin ratio compares the gross profit of a company to its net sales to show how
much profit a company makes after paying its cost of goods sold:

Gross margin ratio = Gross profit / Net sales

The operating margin ratio, sometimes known as the return on sales ratio, compares the
operating income of a company to its net sales to determine operating efficiency:

Operating margin ratio = Operating income / Net sales

The return on assets ratio measures how efficiently a company is using its assets to generate
profit:

Return on assets ratio = Net income / Total assets

Market Value Ratios

Market value ratios are used to evaluate the share price of a company’s stock. Common
market value ratios include the following:

The book value per share ratio calculates the per-share value of a company based on the
equity available to shareholders:

Book value per share ratio = (Shareholder’s equity – Preferred equity) / Total common shares
outstanding

The dividend yield ratio measures the amount of dividends attributed to shareholders relative
to the market value per share:

Dividend yield ratio = Dividend per share / Share price

The earnings per share ratio measures the amount of net income earned for each share
outstanding:

Earnings per share ratio = Net earnings / Total shares outstanding

The price-earnings ratio compares a company’s share price to its earnings per share:

Price-earnings ratio = Share price / Earnings per share

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A ratio is a mathematical number calculated as a reference to relationship of two or more
numbers and can be expressed as a fraction, proportion, percentage and a number of times.
When the number is calculated by referring to two accounting numbers derived from the
financial statements, it is termed as accounting ratio. It needs to be observed that accounting
ratios exhibit relationship, if any, between accounting numbers extracted from financial
statements. Ratios are essentially derived numbers and their efficacy depends a great deal
upon the basic numbers from which they are calculated. Further, a ratio must be calculated
using numbers which are meaningfully correlated.
Objectives of Ratio Analysis: Ratio analysis is indispensable part of interpretation of results
revealed by the financial statements. It provides users with crucial financial information and
points out the areas which require investigation. Ratio analysis is a technique which involves
regrouping of data by application of arithmetical relationships, though its interpretation is a
complex matter. It requires a fine understanding of the way and the rules used for preparing
financial statements. Once done effectively,
it provides a lot of information which helps the analyst:
1. To know the areas of the business which need more attention; 2. To know about the
potential areas which can be improved with the effort in the desired direction; 3. To provide a
deeper analysis of the profitability, liquidity, solvency and efficiency levels in the business; 4.
To provide information for making cross-sectional analysis by comparing the performance
with the best industry standards; and 5. To provide information derived from financial
statements useful for making projections and estimates for the future.
Importance (or Advantages) of Ratio Analysis:
1.Helps to understand efficacy of decisions: The ratio analysis helps you to understand
whether the business firm has taken the right kind of operating, investing and financing
decisions. It indicates how far they have helped in improving the performance. 2. Simplify
complex figures and establish relationships: Ratios help in simplifying the complex
accounting figures and bring out their relationships. They help summarise the financial
information effectively and assess the managerial efficiency, firm’s credit worthiness, earning
capacity, etc. 3. Helpful in comparative analysis: The ratios are not be calculated for one year
only. When many year figures are kept side by side, they help a great deal in exploring the
trends visible in the business. The knowledge of trend helps in making projections about the
business which is a very useful feature. 4. Identification of problem areas: Ratios help
business in identifying the problem areas as well as the bright areas of the business. Problem
areas would need more attention and bright areas will need polishing to have still better
results. 5. Enables SWOT analysis: Ratios help a great deal in explaining the changes
occurring in the business. The information of change helps the management a great deal in
understanding the current threats and opportunities and allows business to do its own SWOT
(Strength-Weakness-Opportunity-Threat) analysis. 6. Various comparisons: Ratios help
comparisons with certain bench marks to assess as to whether firm’s performance is better or
otherwise. For this purpose, the profitability, liquidity, solvency, etc. of a business, may be
compared: (i) over a number of accounting periods with itself (Intra-firm Comparison/Time
Series Analysis), (ii) with other business enterprises (Inter-firm Comparison/Cross sectional
Analysis) and (iii) with standards set for that firm/industry (comparison with standard (or
industry expectations). Limitations of Ratio Analysis: 1. Limitations of Accounting Data:

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Accounting data give an unwarranted impression of precision and finality. In fact, accounting
data “reflect a combination of recorded facts, accounting conventions and personal
judgements which affect them materially. For example, profit of the business is not a precise
and final figure. It is merely an opinion of the accountant based on application of accounting
policies. The soundness of the judgement necessarily depends on the competence and
integrity of those who make them and, on their adherence, to Generally Accepted Accounting
Principles and Conventions”. Thus, the financial statements may not reveal the true state of
affairs of the enterprises and so the ratios will also not give the true picture.
2. Ignores Price-level Changes: The financial accounting is based on stable money
measurement principle. It implicitly assumes that price level changes are either non-existent
or minimal. But the truth is otherwise. We are normally living in inflationary economies
where the power of money declines constantly. A change in the price-level makes analysis of
financial statement of different accounting years meaningless because accounting records
ignore changes in value of money. 3. Ignore Qualitative Aspects: Accounting provides
information about quantitative (or monetary) aspects of business. But sometimes qualitative
factors may surmount the quantitative aspects. The calculations derived from the ratio
analysis under such circumstances may get distorted. For E.g., though credit may be granted
to a customer on the basis of information regarding his financial position, yet the grant of
credit ultimately depends on debtor’s character, honesty, past record and his managerial
ability.
4. Variations in Accounting Practices: There are differing accounting policies for valuation of
inventory, calculation of depreciation, treatment of intangibles Assets definition of certain
financial variables etc., available for various aspects of business transactions. These
variations leave a big question mark on the cross-sectional analysis. As there are variations in
accounting practices followed by different business enterprises, a valid comparison of their
financial statements is not possible. 5. Forecasting: Forecasting of future trends based only on
historical analysis is not feasible. Proper forecasting requires consideration of non-financial
factors as well. 6. Lack of ability to resolve problems: Their role is essentially indicative and
of whistle blowing and not providing a solution to the problem.

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 CHAPTER 2

COMPANY PROFILE

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COMPANY PROFILE
Axis Bank was the first of the new private banks to have begun operations in 1994, after the
Government of India allowed new private banks to be established. The Bank was promoted jointly by
the Administrator of India of the (LIC) specified and General undertaking Insurance of the Unit
Corporation Trust of India of India (UTI (GIC) - I), Life and Insurance Corporation other four PSU
insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company
Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd.
The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding (other than
promoters) at 57.60%. The Bank's Registered Office is at Ahmedabad and its Central Office is located
at Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices and
Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking
convenience to its customers. This is one of the largest ATM networks in the country.
AXIS BANK MURBAD Branch IFSC Code. UTIB0001495 The MURBAD, AXIS BANK Branch is
now operating in Murbad District. As we know the Murbad district is one of the popular districts in
Maharashtra.
Real Time Gross Settlement (RTGS) & National Electronic Funds Transfer (NEFT) are a nationwide
online fund transfer system supported by RBI. RGTS & NEFT facilitates individuals (Saving
Account), firms and corporate (Current Account) to transfer small and medium amount from any Axis
Bank branch to any individual Saving A/c, firm or corporate Current A/c having an account with any
other Bank branch in the India.
Axis Bank Murbad IFSC Code UTIB0001495 information can also be used to do online Net banking,
Electricity, Mobile, credit card Bill payments, health insurance premium payments, Flight, Bus and
Train ticket booking, online shopping, loan EMI, payments, online Share equity Trading Fund transfer
buying mutual fund
Bond, gold efts etc.

The objective of the AXIS Bank is to provide its target market customers a full range of financial products and banking
services, giving the customer a one-step window for all his/her requirements. The AXIS Bank plus and the investment

18
advisory services programs have been designed keeping in mind needs of customers who seeks distinct financial solutions,
information and advice on various investment avenues. To be the favored budgetary administrations provider outshining cust

ABOUT THE BANK

IFSC CODE UTIB0001495

BANK NAME AXIS BANK

BRANCH MURBAD

BRANCH CODE 1495

MODEN OF PAYMENT CASH, CHEQUE, DEMAND DRAFT AND NET

BANKING
EMAIL COSTOMER. SERVICES @ AXIS BANKJ.COM

WEBSITE ww.axisbank.com

HEADQUARTER Mumbai

TIMING Monday to Friday and Saturday half day exception 2nd

and 4th Saturday
REMITTANCE NEFT

CITY MURBAD

DISTRIC THANE

STATE MAHARASHTRA

COUNTRY INDIA

ADRESS SHOP NO 13 SHRINIKETAN BUILDING

MATRUCHAY ACO OP HAUSIN GSOCIETY LTD
POST MURBAD DIST TAHNE,MAHARASHTRA
421401.

19
Core values
Persistent – if were on for job, challenges are meant to be malted to pave the way for
successful delivery, on time, every time
Agile – being as nimble and flexible as a startup despite having herculean team strength
Meritocratic – performance per excellence is only the way to be in the business, in the
company
Accessible – we value our association with the clients, and the employees alike, and
accessible to one and all
Collaborative – theres nothing like the collective power of one we deliver with doing and
collaborative team with the deserve competencies blending in to make one formidable
VISION

The AXIS Bank is committed to maintain the highest level of ethical standards, professional integrity and
regulatory compliance. AXIS Bank's business philosophy is based on four core values such as:-

Operational excellence.
Customer Focus.
Product leadership.
People.

Mission

To deliver operational excellence through innovation, Technology, Quality and Commitment

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Board of the member
Naruni Subramanyam Viswanathan:
Naruni Subramanyam Viswanathan aged 64 has been career at central banker he join the reserve bank
of India in 1981as director recruit officer and rose through the rank and retire at deputy governor in
march 2020.
He has varied experience as a central banker and also include the handling administrative functions at
rbi as deputy governor he has experience at handling of banking and non banking sector as well.
Amitabh Chaudhry:
Amitabh Chaudhry was re-appointed as the Managing Director & CEO of the Bank on 28 April, 2021,
for a further period of three years, with effect from 1 January, 2022 up to 31 December, 2024 (both
days inclusive). The said re-appointment was approved by the members of the Bank at 27th AGM
held on 30 July, 2021 and by RBI vide letter dated 14 October, 2021.
Prof. S. Mahendra Dev:
Prof. S. Mahendra Dev was appointed as an Independent Director of the Bank on 14 June, 2021, for a
period of four years with effect from 14 June, 2021 up to 13 June, 2025 (both days inclusive). The
said appointment was approved by the members of the Bank at 27th AGM held on 30 July, 2021. He
is not liable to retire by rotation, in terms of Section 149(13) of the Act.
The Board formed an opinion that Prof. S. Mahendra Dev has the integrity, expertise and requisite
experience, which is beneficial to the business interest of the Bank. Further, he is in compliance with
passing of online proficiency self-assessment test, as prescribed under Rule 6(4) of the Companies
(Appointment and Qualification of Directors) Rules, 2014.
Ashish Kotecha:
Ashish Kotecha was appointed as an Non-Executive (Nominee of entities affiliated to Bain Capital)
Director of the Bank on 14 December, 2021, to hold office with effect from 19 December, 2021 up to
18 December, 2024 or till the time entities affiliated to Bain Capital are directly holding in the
aggregate at least two percent (2%) of the equity share capital of the Bank on a fully diluted basis,
whichever is earlier.
The said appointment was approved by the members of the Bank vide postal ballot on 6 March, 2022.
He is liable to retire by rotation, in terms of Section 152 of the Act
Rajiv Anand:
Rajiv Anand, Executive Director (Wholesale Banking) was re-designated as the Deputy Managing
Director of the Bank and the said re-designation was approved by RBI from the date of its letter i.e.
27 December, 2021 up to 3 August, 2022 i.e. remainder of his tenure as the Executive Director
(Wholesale Banking) of the Bank. The said re-designation was approved by the members of the Bank
vide postal ballot on 6 March, 2022.
Rajiv Anand was re-appointed as the Deputy Managing Director of the Bank on 10 January, 2022, for
a further period of three years, with effect from 4 August, 2022 up to 3 August, 2025 (both days
inclusive). The said re-appointment was approved by the members of the Bank vide postal ballot on 6
March, 2022. The approval of RBI for the aforesaid re-appointment is awaited.
Rakesh Makhija:

21
Rakesh Makhija was re-appointed as the Non-Executive (Part-time) Chairman of the Bank on 25
January, 2022, from 18 July, 2022 up to 26 October, 2023 (both days inclusive). The said re-
appointment was approved by the members of the Bank vide postal ballot on 6 March, 2022. The
approval of RBI for the aforesaid re-appointment is awaited.

Girish Paranjpe:

Girish Paranjpe was re-appointed as an Independent Director of the Bank on 29 April, 2022, for a
further period of four years, with effect from 2 November, 2022 up to 1 November, 2026 (both days
inclusive). Based on performance evaluation and recommendation of the NRC, the Board
recommends his re-appointment to the members of the Bank.

T. C. Sushil Kumar:

T. C. Sushil Kumar, Non-Executive (Nominee Director) of the Bank, whose office is liable to retire at
the ensuing AGM, being eligible seeks re-appointment, in terms of the provisions of Section 152(6) of
the Act.

Based on performance evaluation and recommendation of the NRC, the Board recommend his re-
appointment to the members of the Bank. Resolutions in respect of re-appointments of Girish
Paranjpe and T. C. Sushil Kumar have been included in the Notice convening the 28th AGM of the
Bank.

22
 CHAPTER 3

OBJECTIVE STUDY

23
Objective of the study

To analyze the ratio of the axis bank ltd.

To know the past and present financial performance of the axis bank.
To determine comparison of ratio .

24
 SCOPE OF THE STUDY

1. The study has great significance and provides benefits to various part is whom directly
or indirectly interact with the bank.

2. It is the beneficial to management of the bank by providing crystal clear pictures

regarding importance aspects like liquidity leverage activity and profitability.

3. The study is also many facial to employees and offers motivations by showing how I
actively they are contributing for banks growth.

4. The investors who are interested in investing in the Bank shares will also get
beneficial by going through the study and can easily take a decisions weather to
waste or not to invest in the Bank shares

5. To know whether the bank is growing or incurring losses or it is Stagnant significant

in its performance.

Need of the study

The prevalent education system providing the placement training at an industry being a part
of the curriculum has helped in comparison of theorical knowledge with practical system. It
has led to note the convergence and divergence between theory and practical.
The study enables us to access the various facts about the organization or company. It helps in
understanding the needs for the importance and the advantage of material in the organization,
the study also helps to exposure our minds to the integrated materials management the
various procedure, method and technique adopted by the organization.

25
 CHAPTER 4
LITERATURE REVIEW

26
 LITERATURE REVIEW

The ratio analysis was

presented by Euclid in his
book 5, ‘Elements’ in about
300 B.C. At that time,
ratio was not used as financial
tool. The first time financial
statement analysis was done
by American
industries in Nineteenth
Century to comparison of
financial results have two
purposes. There was much
overlap, the development path
of ratio analysis for creditor
purposes and for managerial
purposes were
27
different. Credit analysis
emphasized measures of
ability to pay whereas
managerial analysis
emphasized profitability
measures. During the period
prior of World War-1, some
important
developments in ratio analysis
occurred.
In 1912 Alexander Wall has
used financial statement of
commercial paper brokers. In
1919, Wall
studied 981 to credit
barometric study. At that
28
time, the Du-Pont company
used top three ratio; ROI
(profit/total assets), PMR
(profit/sales) and CTR
(sales/total assets) to
evaluation of its operating
results.
In 1920, interest in ratio
analysis was increased by
trade associations, universities,
credit agencies and
The ratio analysis was presented by Euclid in his book 5, ‘Elements’ in about 300 B.C. At
that time, ratio was not used as financial tool. The first time financial statement analysis was
done by American industries in Nineteenth Century to comparison of financial results have
two purposes. There was much overlap, the development path of ratio analysis for creditor
purposes and for managerial purposes were different. Credit analysis emphasized measures
of ability to pay whereas managerial analysis emphasized profitability measures. During the
period prior of World War-1, some important developments in ratio analysis occurred. In
1912 Alexander Wall has used financial statement of commercial paper brokers. In 1919,
Wall studied 981 to credit barometric study. At that time, the Du-Pont company used top
three ratio; ROI (profit/total assets), PMR (profit/sales) and CTR (sales/total assets) to
evaluation of its operating results. In 1920, interest in ratio analysis was increased by trade
associations, universities, credit agencies and individual analysts. This process was called
“scientific ratio analysis”. Wall attempted to mitigate the effects of ratio proliferation by
developing a ratio index. Bliss presented a models ratio analysis in 1920. (Bliss, 1923)
In 1925 Gilman objected that their changes over time cannot be interpreted because the
numerator and denominator, ratios are artificial measures, ratio divert the analyst’s attention
from comprehensive view of the firm and their reliability as indicators varies widely between

29
ratios. In 1930, there were two significant developments in this decade relating directly to the
ratio analysis. In 1933, Foulken identified fourteen ratios for comparison of various firms or
company. In 1940, ratio development was on the base of direct and indirect implementation.
After 1940 to date, the development of ratio analysis in the universal has continued along
various paths. In Australia, ratio-especially the current ratio- have been subjected to rigorous
scrutiny in order to determine their logicality and they have been used as the basic
ingredients of an application of the scientific method to financial management. (RJChambers,
August, 1948) In England, on other side, a very distinct ‘common thread’ in ratio analysis has
developed. The British Institute of Management has generated interest in ratio as tool for
inter-firm comparisons. In general, ratio analysis in England is developing within a
management orientation (R.G.H.Nelson, 1960)
In France; interest in ratio was in systematic framework like British idea of exchanging
information between firms. (JeanNataf, 1957)In India, there appears to have been extensive
borrowing from American sources of not only types of ratio but their criteria as well.
(R.K.Dalal, 1956) (N.N.Pai, 1964) In Japan, aggregate statistics of a large number of
financial ratios are available by broad industry groupings and by size of firm categories.
(Economic Statistics of Japan, 1963) In Russia and China, working capital turnover and
return on investment ratios are used to comparisons and measurement. And after the step by
step, every country has developed their ratios as interest and requirement for firm analysis.
James O. Horrigan studied on financial ratio analysis. Researcher has briefly explained
Liquidity Ratio, Solvency Ratio, Capital Turnover Ratio, Profit Margin Ratio and Return on
Investment with illustration. (Horrigan, July-1965) James M. Patton studied on ratio analysis
and efficient markets in introductory financial accounting. Researcher has presented potential
contributions of ratio analysis. (Patton, July1982) Kent John Chabotar studied on Financial
Ratio Analysis Comes to Non-profits. Researcher has explained current ratio, quick ratio,
available funds ratio, debt-equity ratio, debt-service ratio, sources of fund, uses of funds and
net operating ratio with illustrative explanation. (Chabotar, March-April, 1989) Martin L.
Leibowitz studied on the corporate finance approach of used the return parameters of the
unlevered company with target P/E. Researcher presented ROA and P/E vs. Debt Ratio for
Specified Levered ROE. (Martin, Nov-Dec, 2002) M.I.Gonzalez-Bravo studied on prior ratio
analysis procedure to improve data envelopment analysis for performance measurement;
researcher introduced Data Envelopment Analysis for six ratios; profit/fixed assets,
profit/total assets, value-added/total assets, profit/labour, value-added/fixed assets, sales
revenue/fixed assets and sales revenue/total assets were used. (Gonzalez, Sep-2007) Radu
Marginean and others have used ratios of profit and loss account to performance analysis
with the data of 2006 to 2013; using large enterprises with more than 700 employees of
Romania. (RaduMarginean, 2015) There are so many researches done by using various ratios
as per requirement of study. Researcher has tried to list some of the formulas in next topic.
Review of LiteratureReview of Literature refers to the collection of the results of the various
researches relating to the present study. It takes into consideration the research of the
previous researchers which are related to the present research in any way. Here are the
reviews of the previous researches related with the present study:
Bollen (1999) conducted a study on Ratio Variables on which he found three different uses of
ratio variables in aggregate data analysis: (1) as measures of theoretical concepts, (2) as a
means to control an extraneous factor, and (3) as a correction for heteroscedasticity. In the
use of ratios as indices of concepts, a problem can arise if it is regressed on other indices or
variables that contain a common component. For example, the relationship between two per
capita measures may be confounded with the common population component in each
variable. Regarding the second use of ratios, only under exceptional conditions will ratio

30
 variables be a suitable means of controlling an extraneous factor. Finally, the use of ratios to
correct for heteroscedasticity is also often misused. Only under special conditions will the
common form forgers soon with ratio variables correct for heteroscedasticity.
Alternatives to ratios for each of these cases are discussed and evaluated.
Cooper (2000) conducted a study on Financial Intermediation on which he observed that the
quantitative behaviour of business-cycle models in which the intermediation process acts
either as a source of fluctuations or as a propagator of real shocks. In neither case do we find
convincing evidence that the intermediation process is an important element of aggregate
fluctuations. For an economy driven by intermediation shocks, consumption is not
smoother than output, investment is negatively correlated with output, variations in the
capital stock are quite large, and interest rates are procyclical. The model economy thus fails
to match unconditional moments for the U.S. economy. We also structurally estimate
parameters of a model economy in which intermediation and productivity shocks are
present, allowing for the intermediation process to propagate the real shock. The
unconditional correlations are closer to those observed only when the intermediation shock is
relatively unimportant

Gerrard (2001) conducted a study on The Financial Performance on which he found that Using ratio
analysis the financial performance of a sample of independent single-plant engineering firms in
Leeds is examined with regard to structural and locational differences in establishments. A number of
determinants of performance are derived and tested against the constructed data base. Inner-city
engineering firms perform relatively less well on all indicators of performance compared with outer-
city firms. The study illustrates the importance of using different measures of performance since this
affects the magnitude and significance of the results. Financial support is necessary to sustain
engineering in the inner city in the long run

Schmidgall (2003) conducted a study on Financial Analysis Using the Statement of Cash Flows on
which he observed that Managers use many financial ratios to judge the health of their
businesses. With the recent requirement of a statement of cash flow (SCF) by the Financial
Accounting Standards Board, managers now have a new set of ratios that will give a realistic picture
of the business. The ratios include cash flow-interest coverage, cash flow-dividend
coverage, and cash flow from operations to cash flow in investments. These ratios are
particularly useful because they show changes in a hotel or restaurant's cash position over time, rather
than at a given moment, as is the case with many other ratios.

Murinde (2003) ) conducted study on Corporate Financial Structures on which he observed that the
financial structure of a sample of Indian non-financial companies using a new and unique dataset
consisting of a panel containing the published accounts of almost 900 companies that published a full
set of accounts every year during 1989-99. In a new departure in the literature, the dataset includes
quoted and unquoted companies. We compare the sources-uses approach to analysing company
financial structures with the asset-liability approach. We use both approaches to characterize and to
compare the financial structures of Indian companies over time; between quoted and unquoted
companies; and between companies which belong to a business group and those that do not. Finally,
we compare our results to those obtained previously for India and for the industrial countries.

McMahon (2005) conducted a study on Financial Information on which he found that financial
statements mean little to the uninitiated. This paper, explains, in layman's terms, how

31
to understand financial information. It covers measures of profitability. The second article
will cover measures of company liquidity and the use of financial ratios. This paper continues to
explain how to interpret and understand financial information. It deals with measures of liquidity,
solvency and fund flows and describes how to establish standards against which a company's financial
ratios can be compared.

Lee (2008 conducted a study on Financial Risk on which he observed that Financial researchers,
including those concentrating on the lodging industry, use various financial risk measures for their
studies. Examples of those risk measures are beta, earnings variability, bankruptcy
probability, debt-to-equity ratio and book-to-market ratio. The purpose of this study is, first, to
descriptively investigate various financial risk measures used in the lodging financial literature by
performing factor analysis and identifying four distinct risk groups. Second, this study
examines the predictive ability of the four risk groups for lodging firm performance.
The findings of this study suggest that strategic and stock performance risk factors better represent a
lodging firm's financial risk than do bankruptcy and firm performance risk factors, and also, ROA
than ROE better estimates lodging firm performance in terms of their relationships with financial risk
factors.

Johnson (2009) conducted a study on Financial Ratio patterns on which he found that the
properties and characteristics of financial ratios have received considerable attention in recent years
with interest primarily focused on determining the predictive ability of financial ratios and related
financial data. Principal areas of investigation have included the prediction of corporate bond ratings ,
and the anticipation of financial impairment]. Related studies have examined the characteristics of
merged firms the differences in financial ratio averages among industries whether firms seek to
adjust their financial ratios toward industry averages the relationship between accounting-
determined and market-determined risk measures, and the influence of financial ratios on
analysts' judgments about impending bankruptcy The general conclusion to emerge from these
various research efforts is that a number of financial ratios have predictive and descriptive utility
when properly employed.43

To summarize the literature , Ratio analysis is a key dimension of financial

management, suggesting a relationship between profit and loss as mentioned in the
balance sheet of an organization. Its appropriate use will go toward giving a true picture of the
financial health of the unit. Its benefits can be seen in areas of management, production,
marketing, personnel management etc

32
33
 CHAPTER 5
RESEARCH METHODOLOGY

34
 Research methodology

Methodology is a way to systematically solve the research problem. It explains various steps
that are generally adopted by a researcher in studying the research problem.
Research process in which the researcher wishes to find out the end result for a given
problem and thus the solution helps in future course of action. The research has been defined
as” A careful investigation or enquiry through search for new facts in branch of knowledge “
For this study Descriptive method has been adopted for gaining insight into a company’s
liquidity, operational efficiency, and profitability by studying its financial statements such as
the balance sheet and income statement.
Research methodology is a way to systematically solve the research problem it may be
understood as a science of studying how research is done scientifically so the research
methodology not only talks about research methods but also considered the logic behind the
method using the contacts of the research study.

 To analyse the data, acquire from the primary as well as secondary sources of
financial statement analysis the scope of the study is defined as below in terms of
concept adopted and period under focus.
 First the study of the financial statement analysis is confined only to axis bank Pvt
Ltd.
 Secondly the study is based on the annual reports of the company for period of five
year past data

Research design

A research design is purely and simply the basic frame work or plan for a study that guides
the collection and analysis of the data. In financial analysis, the researcher adopted the
collection and analysis of the data.

Data collection

The required data for the study arc basically secondary in nature and the data are collected
from the auditor reports of the bank.

Primary Data

35
The primary data was collected mainly with the interactions and discussions with the bank
executives.

Secondary Data
Most of the calculation are made on financial statements of the bank and the bank
provided financial statement of 5 year.
Some of the information regarding or to the theoretical aspects where collected by
referring standard takes 10 through internet.

36
Profitability reflects the final result of business operations. There are two types of
profitability ratios: Profit margins ratios and rate of return 1 items. Profit margin ratios show
the relationship between profit and sales. The -two popular profit margin ratios are: gross
profit margin ratio and net profit margin ratio. Rate of return ratios reflects the relationship
between profit and investment. The important rate of return measures is: return on total
assets, earning power, and return on equity.
Financial solvency refers to the use of debt finance. While debt capital is a cheaper source of
finance, it is also a riskier source of finance. Solvency ratios help in assessing the risk arising
from the use of debt capital. Two types of ratios are commonly used to analyses financial
solvency: Structural ratios and coverage ratios. Structural ratios are based on the proportions
of debt and equity in the financial structure of the firm.
The important structural ratios are: debt-equity ratio and debt-assets ratio. Coverage ratios
show the relationship between debt servicing commitments and the sources for meeting these
burdens. The important coverage ratios are: interest coverage ratio, fixed charges coverage
ratio, and debt service coverage ratio.
Liquidity refers to the ability o f a firm to meet its obligations in the short run, usually one
year. Liquidity ratios are generally based on the relationship between current assets (The
sources for meeting short term obligations) and current liabilities.
Ratios Turnover ratios, also referred to as activity ratios or asset management ratios, measure
how efficiently the assets are employed by a firm. These ratios are based on the relationship
between the level of activity, represented by sales or cost of goods sold, and levels of various
assets. The important turnover ratios are: inventory turnover, average collection period,
receivables turnover, fixed assets turnover, and total assets turnover.
Activity Ratios Activity ratios are also known as efficiency ratios. These ratios measure how
efficiently the firm is using its resources like turnover of working capital and turnover of
fixed assets etc

37
 CHAPTER 6
INTERPRETATION OF DATA

38
 INTERPRETATION OF THE DATA

1.what is a current ration of the axis bank?

particular 2013-14 2014-15 2015-16 2016-17 2017-18
CA and loan 5699.28 9587.39 8711.54 7406.87 8138.7
&advance
CLand 4973.51 4370.11 7811.18 12255.16 5674.04
provisions
Current ratio 1.15 2.19 1.12 0.62 1.43

2.5

1.5

0.5

0
2015-16 16-17 17-18 18-19 19-20

This is found in a survey that the 2014-15 is the ideal or the standard year for axis bank
because its ratio is 2.19 and ths standard number as per rule of the ratio is 2:1 or more
indicate the highly solvent position.

39
2.what is quick liquid and acid test ratio?
particular 2013-14 2014-15 2015-16 2016-17 2017-18
CAand loan and 3227.56 7756.65 7100.4 5929.25 66118.12
advance minus
inventories
CL and provision 4382.64 3732.56 7440.17 9214.9 5674.4
minus bank OD
QL an acid test ratio 0.85 2.84 0.93 0.64 1.17

It is found in aservey that the bank have its good liquidity position that is 1.17 that is seen in
the year of 19-20 because the quick ratio 11 shows the satisfactory position of the bank

18% 13%
2013-14
14-15
10%
15-16
16-17
14% 44% 17-18

40
3.what is debt equity ratio of the axis bank?
Particular(in 2013-14 2014-15 2015-16 2016-17 2017-18
lakh)
Long time 166.9 500 166.9 289.83 1733.34
debt
Share holder 3807.85 2832.64 2849.72 2448.52 3188.47
find
Debt equity 0.045 0.177 0.59 0.122 0.534
ratio

0.6

0.5

0.4

0.3

0.2

0.1

0
2013-14 2014-15 2015-16 2016-17 2017-18

If the day equity ratio is greater than 1 then the bank assets are through finance debt and if its
ration is less than 1 then assets are finance through equity
And in the above table the ratio is less than 1 that is why the year 2015-20 ha a bank assets
through equity

41
4.fixed asset to long term fund ratio?
Particular (in 2013-14 2014-15 2015-16 2016-17 2017-18
lakh)
Fixed asset 5456 12 7099.99 4725.12 4637.32 3678.9

Long term 166.8 503 166.9 283.5 1733.5

fund
FA and LT 33.25 16.02 28.19 16.09 2.06
funds ratio

40

35

30

25

20

15

10

0
2013-14 2014-15 2015-16 2016-17 2017-18

From the above table the bank can have an easy access to cash to there financial obligation in
the year19-20 as compare to the reamaning year from 2015-18

42
5.what is the rate of inventory turnover ratio?
Particular(in 2013-14 2014-15 2015-16 2016-17 2017-18
lakh)
Cost of the 13954.34 15212.57 16426.52 19089.23 25253.23
good sold
Average 563.092 501.96 417.594 322.025 365.045
inventory
Inventory 24.28 29.91 31.91 59.31 63.37

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
2013-14 2014-15 2015-16 2016-17 2017-18

It is found in a survey that the inventory turnover ratio of the bank is satisfactory because the
ratio of the bank is increasing day by day from 2015 to 2020.

43
6.what include in your ratio analysis?
There are different type of ratios which include in ratio analysis such as
Current ratio
Quick ratio
Debt equity ratio
Turnover ratio

7.what are the debtors turnover ratio?

Particular(in 2013-14 2014-15 2015-16 2016-17 2017-18
lakh)
Credit sale 19104.74 19654.57 22356.35 24078.56 30664.37
Average 2927.7 4513.68 5813.3 5358.805 4946.55
debtors
Debtors 6.50 4.35 3.85 4.49 6.20
turnover
ratio

2017-18 2013-14

2016-17
2014-15

2015-16

2013-14 2014-15 2015-16 2016-17 2017-18

In the above table the has increase in 2015-16 and the its decreases in the year of the 2019-20
and also in there middle year that is 2017-1 that indicates the debit of the bank are being
collected more promptly.

44
 8. what is your creditor turnover ratio?
Particular(in lakh) 2013-14 2014-15 2015-16 2016-17 2017-18
Credit purchase 13979.88 14885.3 16374.43 18086.23 23273.03
Average creditor 3020.295 3624.009 5472.2702 7226.37 4802.085
Credit turnover 4.63 4.1 2.99 2.59 4.85
ratio

4.5

3.5

2.5

1.5

0.5

0
2013-14 2014-15 2015-16 2016-17 2017-18

Series 1 Series 2 Series 3

In the above table we can see that the creditor turnover ratio is like down in the year of 16 -17
and this is showing that the payment of the creditors is slow as compare to other year in the
above table.

45
9.whayt is total turnover ratio?
Particular(in 2013-14 2014-15 2015-16 2016-17 2017-18
lakh)
Sales 19104.87 19625.18 22356.3 24078.32 30664.18
Total asset 6710.10 13477 8594.23 15311.65 14823.99
Total asset 2.85 1.46 2.62 1.59 2.07
turnover
ratio

0
2013-14 2014-15 2015-16 2016-17 2017-18

If a bank can generate mole sales with fewer assets it has a higher turnover ratio which tells bit is
good bank because it is using its assets efficiently. A lower turnover ratio tells that the bank is not
using its assets optimally. total assets turnover ratio is key drive of returns equity.

From above table the total asset turnover ratio is high that is 2.85 (in the year of 2015 to I l when
compared when a compare with remaining years) that is the 201 6- 17, 2017- 18, 2018-19, 2019-
2020). In the beginning the bank was in good in using a set efficiency letter it

46
10.what is the working capital turnover ratio?
Particular(in 2013-14 2014-15 2015-16 2016-17 2017-18
lakh)
Sales 19104.87 19625.18 22356.35 24569.27 30664.18
WC or 1296.105 2971.52 3058.215 982.18 1719.375
average net
CA
WC turnover 14.74 6.60 7.31 24.52 17.83
ratio

30

25

20

15

10

0
2013-14 2014-15 2015-16 2016-17 2017-18

We can see in the above table that the working capital ratio is high in the year of the 2018-19
that is 24.52 and the year 19-20 is 17.83 is less than the previous year but in the year since
2015 to 18 in decreases.

47
11. what is gross profit ratio?
Particular(in 2013-14 2014-15 2015-16 2016-17 2017-18
lakh)
Sales of 5411.2 4612.69 5930.13 4998.28 7382.23
minus cost
of goods
sold
sales 22356.35 24078.27 19104.87 19625.18 30664.18
GP:M 28.32 23.50 26.53 20.7 24.08

30

25

20

15

10

0
2015-16 2016-17 2017-18 2018-19 2019-20

In the above table that we can see the gross profit is high in the year of 2015-16 when it
compare to the remaining year in the chart this is show that the bank can reasonable profit as
long as they kept overhead cost in the control margin which shows the business is unable to
control the production cost

48
12.what is the net profit margin?
Particular(in 2013-14 2014-15 2015-16 2016-17 2017-18
lakh)
PBIT 1239.65 362.83 604.03 163.19 2082.3
Sales 19104.87 19625.18 22356.35 24078.27 30664.18
npm 6.49 1.85 2.70 0.68 6.79

0
2015-16 2016-17 2017-18 2018-19 2019-20

In the above table that we can see the growth of the profit margin is high in 20116 and since
the next year in show the decreasing this shows the higher margin is more effective to the
bank converting its into the actual profit.

49
13.what is the return on the capital employed?

Particular(in 2013-14 2014-15 2015-16 2016-17 2017-18

lakh)
PBIT 1239.65 362.83 604.04 163.19 2081.23
Average net 6139.16 13470.29 8263.55 8483.255 8044.025
worth plus
loan fund
ROCE 20.19 2.69 7.31 1.92 25.88

2015-16 2016-17 2017-18 2018-19 2019-20

The return on capital employed is greater in the year of 19-20 when it compare to the other
year that ROCE shows that the bank can reinvest into the other greater portion of the business
to profit back into its operational activities.

50
13.what is ratio analysis
It is a quantitative procedure for calculating the financial performance of the company
basically this analysis done through the financial records and the statement of the company.

14.what does ratio analysis include In there calculation?

This include the annual report that is financial records and the statement of that company.

15.What is the financial position of the bank as per its records?

It is showing a growth for the axis bank of the murbad branch and working effectively at
rural side.

16. what is the motive behind the ratio analysis?

To know the company’s current position and also the past performance of the bank and
getting insight into the company.

17.how to determine that company is in its standard position?

When the company have its standard ratio that is 2:1 as per the rule of the calculation shows
that the company is in its standard ratio. And having growth.

18.what are the types of the ratio?

Liquidity ratio
Activity ratio
Profitability ratio
Leverage ratio
Solvency ratio
Turnover ratio
19. what are your ratio shows the as compare to the years each other?
The comparison shows that the axis bank is making a profit margin more as compare to its
last years and also fluctuating in some of them.
20 how you make caparison to calculate the profitability ratio?
By comparing the previous year to the next year.

51
 CHAPTER 7
LIMITATION OF STUDY

52
 The study provide and insight into the financial , personal marketing and the other
aspects of the axis bank if study will be bound with the limitation
 the below mentioned are the constrain under which the study is carried out.
 The study was limited to only five years of the financial data.
 The study is based only on the past records.
 One of the factors of the study was lack of availability of the sample information.
Most of the information has been kept confidential and as such as not assessed as art
of policy of company.
 Time is an important limitation. The whole study was conducted within the period
minimum time which is sufficient to carried out the proper interpretation and analysis.
 Study is only calculated by the balance sheet and the profit and loss accounts of the
bank.

53
 CHAPTER 8
FIBDING AND SUGGESTIONS

54
Findings

This is found in a survey that the 2014-15 is the ideal or the standard year for axis bank
because its ratio is 2.19 and ths standard number as per rule of the ratio is 2:1 or more
indicate the highly solvent position.
It is found in aservey that the bank have its good liquidity position that is 1.17 that is seen in
the year of 19-20 because the quick ratio 11 shows the satisfactory position of the bank
If the day equity ratio is greater than 1 then the bank assets are through finance debt and if its
ration is less than 1 then assets are finance through equity
And in the above table the ratio is less than 1 that is why the year 2015-20 ha a bank assets
through equity
From the above table the bank can have an easy access to cash to there financial obligation in
the year19-20 as compare to the reamaning year from 2015-18

It is found in a survey that the inventory turnover ratio of the bank is satisfactory because the
ratio of the bank is increasing day by day from 2015 to 2020.
In the above table the has increase in 2015-16 and the its decreases in the year of the 2019-20
and also in there middle year that is 2017-1 that indicates the debit of the bank are being
collected more promptly

In the above table we can see that the creditor turnover ratio is like down in the year of 16 -17
and this is showing that the payment of the creditors is slow as compare to other year in the
above table.
If a bank can generate mole sales with fewer assets it has a higher turnover ratio which tells bit is
good bank because it is using its assets efficiently. A lower turnover ratio tells that the bank is not
using its assets optimally. total assets turnover ratio is key drive of returns equity.

From above table the total asset turnover ratio is high that is 2.85 (in the year of 2015 to I l when
compared when a compare with remaining years) that is the 201 6- 17, 2017- 18, 2018-19, 2019-
2020). In the beginning the bank was in good in using a set efficiency letter it

We can see in the above table that the working capital ratio is high in the year of the
2018-19 that is 24.52 and the year 19-20 is 17.83 is less than the previous year but in the
year since 2015 to 18 in decreases

In the above table that we can see the gross profit is high in the year of 2015-16 when it
compare to the remaining year in the chart this is show that the bank can reasonable profit as
long as they kept overhead cost in the control margin which shows the business is unable to
control the production cost

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In the above table that we can see the growth of the profit margin is high in 20116 and
since the next year in show the decreasing this shows the higher margin is more effective
to the bank converting its into the actual profit.

The return on capital employed is greater in the year of 19-20 when it compare to the
other year that ROCE shows that the bank can reinvest into the other greater portion of
the business to profit back into its operational activities.

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Suggestions
bank should work more effectively toward earning their current assets balance.
They should improve there on line facilitates which have more preference these days.
They should attract people towards bank societies for their loan preferences as bank can earn more
assets.
To make people aware about the safe reasons, they should launch some advertisement plans to convey
the loan schemes to broader people and get things done.is can make them more assure.
Most of the people in today life-giving preference to this kind of finances so these bank should be
mare advance.
Axis bank Pvt ltd. should go ahead and for getting things done. They should make process simple
with regards to the display of loan charges and interest pay offs They have to make there scope wider
as per the changing in technology world which can costumer towards them for a loan purpose.
They should have to recover their money of the loan from the defaulter as quick as possible in limited
time. They should work more effectively in the rural area.

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Chapter 9
conclusion

58
conclusion
this project has provided me with valuable in the generating cash flow statements and financial
statement. The knowledge I have gained about ratio analysis is applicable to daily business and
commerce activities. Completing the tasks for this project has not only improved my understanding of
the method, usefulness and importance of ratio analysis for evaluating a company’s performance but
also equipped me to prepare them in future situations based on my experience with this project, I have
reached the following conclusion.
If property analyse and interpreted, financial statements can provide valuable insight into the firms
performance. Analysis of financial statements ratio analysis is the of interest to lenders(a short term as
well as long term)investors, security analysis, managers and others, financial statement analysis may
be done for a variety of purpose, which may range from a simple analysis of the short term liquidity
position of the firm to a comprehensive assessment of the strength and weakness of the firm is various
areas. It is helpful in assessing corporate excellence, judging credit worthiness, forecasting bond
rating, predicting.
I have studied the attached balance sheet and the profit and loss accounts of axis bank private limited
(India) at axis bank for the limited time.
The ratio analysis are the responsibility of the company’s management the analysis and interpretation
of financial statements is essential to bring out the mystery behind the figure in financial statements.
the transaction of company, which have come to my notice. Have been within the powers of company.
Proper books of accounts require by low have been kept by the company in so far as it appears from
my observation of those books.
Proper return have been received from the company’s branches.
The balance sheet and profit and loss accounts are in agreement with the books of account.

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Bibliography

 Referred form the journal and the annual report of axis bank limited murbad branch.
 www.google.com
 corporatefinanceinstitute.com
https://corporatefinanceinstitute.com/resources/accounting/ratio-analysis/

 investopedia.com/financial-edge/0910/6-basic-financial-ratios-and-what-they-tell-you.aspx
 https://en.wikipedia.org/wiki

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