A STUDY ON COMPARATIVE ANALYSIS OF MUTUFUL FUND ANALYSIS IN

ICICI BANK

DEFINITION

(Mutual Fund) Regulations 1993 defines Mutual Fund as “a fund established in the form
of a trust by a sponsor to raise money by the trustees through the sale of units to the public
under one or more schemes for investing securities in accordance with these regulations”
The rationale behind a mutual fund is that there a large number of investors who lack the
time and or the skills to manage their money.

Hence, professional fund managers, acting on behalf of the Mutual Fund, manage the
investments (investor’s money) for their benefit in return for a management fee. The
organization that manages the investment is called the Asset Management Company
(AMC). Thus, a Mutual Fund is the most suitable investment for the common person as it
offers an opportunity to invest in a diversified, professionally managed basket of securities
at a relatively low cost. Anybody with an investible surplus of as little as a few thousand
rupees can invest in mutual fund .Each mutual fund scheme has defined investment
objective and strategy.

A Draft offer documents is to be prepared for launching a fund. Typically, it specifies the
investment objectives of the fund, the risk associated, the cost involved in the process and
the broad rules for entry into and exit from funds and others areas of operation. As you
probably know, mutual funds have become extremely popular over the last couple of
decades what was once just another obscure instrument is now part of daily lives. More
than 80 million people or one half of the household in America invest in mutual funds. That
means that, in the United States alone, trillions of dollars alone are invested in mutual fund.
In fact, too many people, investing means buying mutual funds After all, its common
knowledge that investing in mutual fund is (or at least should be) better than simply letting
cash waste away in a saving account but for most people, that’s where the understanding of
fund ends.

Mutual fund is a mechanism for pooling the resources by issuing unit to the investors and
investing funds in securities in accordance with the objective as disclosed in offer
document. Investment in securities is spread across a wide section of industry and sector
and the risk is reduced. Diversification reduces the risk because all stock may or may not
move in the same direction in the same proportion to their proportion at the same time.
Mutual fund issues units to the investors in accordance with quantum of money invested by
them. Investor of mutual are called unit holders. The profit or losses are shared by the
investors in proportion to their investment. The mutual fund usually comes out with a
number of schemes with different investment objectives which are launched from time to
time. A mutual fund is required to be registered with the , which regulates securities
markets before it can collect fund from the public.

A mutual fund is nothing more than a collective stock and /or bonds. You can think of a
mutual fund as a company that brings together a group of people and invests their money in
stock, bonds and other securities Each investors owns shares which represent a portion of
holding of the fund.

In India, (Mutual Fund) Regulations, 1996 regulates the structure of mutual funds. Mutual
funds in India are constituted in the form of a Public Trust created under The Indian Trusts
Act, 1882.

INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS ASPECTS.

Mutual fund is a trust that pools the savings of a number of investors who share a common
financial goal. This pool of money is invested in accordance with a stated objective. The
joint ownership of the fund is thus “Mutual”, i.e. the fund belongs to all investors. The
money thus collected is then invested in capital market instruments such as shares,
debentures and other securities. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion the number of
units owned by them. Thus a Mutual Fund is the most suitable investment for the common
man as it offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost. A Mutual Fund is an investment tool that allows small
investors access to a well-diversified portfolio of equities, bonds and other securities. Each
shareholder participates in the gain or loss of the fund. Units are issued and can be
redeemed as needed. The fund’s Net Asset value (NAV) is determined each day.

Investments in securities are spread across a wide cross-section of industries and sectors
and thus the risk is reduced. Diversification reduces the risk because all stocks may not
move in the same direction in the same proportion at the same time. Mutual fund issues
units to the investors in accordance with quantum of money invested by them. Investors of
mutual funds are known as unit holders.
When an investor subscribes for the units of a mutual fund, he becomes part owner of the
assets of the fund in the same proportion as his contribution amount put up with the (the
total amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder
or a unit holder.
Any change in the value of the investments made into capital market instruments (such as
shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is
defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV
of a scheme is calculated by dividing the market value of scheme's assets by the total
number of units issued to the investors.

ADVANTAGES OF MUTUAL FUND

 Portfolio Diversification
 Professional management
 Reduction / Diversification of Risk
 Liquidity
 Flexibility & Convenience
 Reduction in Transaction cost
 Safety of regulated environment
 Choice of schemes
 Transparency.

DISADVANTAGE OF MUTUAL FUND

 No control over Cost in the Hands of an Investor

 No tailor-made Portfolios
 Managing a Portfolio Funds
 Difficulty in selecting a Suitable Fund Scheme

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India,
at the initiative of the Government of India and Reserve Bank. Though the growth was
slow, but it accelerated from the year 1987 when non-UTI players entered the Industry.

In the past decade, Indian mutual fund industry had seen a dramatic improvement, both
qualities wise as well as quantity wise. Before, the monopoly of the market had seen an
ending phase; the Assets under Management (AUM) was Rs67 billion. The private sector
entry to the fund family raised the Aum to Rs. 470 billion in March 1993 and till April
2004; it reached the height if Rs. 1540 billion.

The Mutual Fund Industry is obviously growing at a tremendous space with the mutual
fund industry can be broadly put into four phases according to the development of the
sector. Each phase is briefly described as under.

First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve
Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs.6,700 crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of
India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987
followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug
89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual
Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its
mutual fund in December 1990.At the end of 1993, the mutual fund industry had assets
under management of Rs.47,004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual
fund registered in July 1993.

The 1993 (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the mutual
fund (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual
funds with total assets of Rs. 1,21,805 crores.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs.29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with mutual fund and functions under the Mutual Fund Regulations.
Consolidation and growth. As at the end of September, 2004, there were 29 funds, which
manage assets of Rs.153108 crores under 421 schemes.

Structure of the Indian mutual fund industry:

The Indian mutual fund industry is dominated by the Unit Trust of India and which has a
total corpus of Rs 700bn collected from more than 20 million investors .The UTI has many
fund /schemes in all categories i.e. equity, balanced, income etc with some being open
ended and some being closed ended. The United Scheme 1964 commonly referred to as
US64, which is a balanced fund, is the biggest scheme with a corpus of about Rs 200bn
URI was floated by financial institution and is governed by a special act of the parliament.
Most of its investors believe that the UTI is government owned and controlled, which,
while legally incorrect, is true for all practical purposes.

The second largest categories of mutual funds are the ones floated by nationalized banks.
Can bank Asset management floated by Canara Bank and SBI Funds Management floated
by the State Bank of India are the largest of these. GIC AMC floated by General Insurance
Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the prominent
ones. The aggregate corpus of funds managed by this category of AMC’s is about Rs 150
billion

The third largest categories of the mutual funds are the once floated by the private sector
and by the foreign asset management companies. The largest of these are Prudential ICICI
AMC and Birla SUN LIFE AMC. The aggregate corpus of the asset managed by this
category of AMC s is in excess of Rs 250bn.

RECENT TRENDS IN THE MUTUAL FUND INDUSTRY:

The most important in the mutual fund industry is the aggressive expansion of the foreign
owned mutual fund companies and the decline of the companies floated by the nationalized
bank and smaller private sector players. Many nationalized banks got into the mutual fund
business in the early nineties and go off to a good start due to the stock market boom
prevailing then. These banks did not really understand the mutual fund business and they
just viewed it as another kind of banking activity. Few hired specialized staff and generally
choose to transfer staff from the parent organization. Some schemes had offered guaranteed
returns and their patent organization had to bail out these by paying large amount of money
the difference between the guaranteed and actual returns. The service level was also bad.
Most of these have not been able to retain staffs, float, and new schemes etc. and it is
doubtful whether barring a few expectations, they have serious plans of continuing the
activity in a major way.

The experience of some of the floated by private sector Indian companies was also very
similar. They quickly realized that the business is a business, which makes money in the
long term and requires deep pocketed support in the intermediate years. Some have sold out
to foreign owned companies, some have merged with the others and there is general
restructuring going on.

The foreign owned companies have deep pockets and have come in here with the
expectation of a long haul. They can be credited with introducing many new practices such
as new product innovation, sharp improvement in the service standards and disclosure,
usage of technology, broker education etc. In fact, they have forced the industry to upgrade
itself and service levels of the organization like UTI have improved dramatically in the last
few years in response to the competition provided by these.

FUTURE SCENARIO:

The asset base will continue to grow at an annual rate of about 30 to 35% over the next few
years as investor’s shift their asset from banks and other traditional avenues. Some of the
older public and private sector players will either close or be taken over.Out of ten public
sectors players five will sell out, close down or merge with strong players in three to four
years. In the private sector this trend has already started with two mergers and one takeover.
Here too some of them will down their shutter in the near future to come.

But this does not mean there is no room for other players. The market will witness a flurry
of new players entering the area. There will be a large number of offers from various asset
management companies in times to come. Some big names like Fidelity, Principal and Old
Mutual etc. are looking at Indian market seriously.

The mutual fund industry is awaiting the derivation in India as this would enable it to hedge
its risk and this in turn would be reflected in its Net Asset Value (NAV).

Mutual Fund is working out the norms for enabling the existing mutual fund scheme to
trade in derivatives. Importantly, many market players have called on the Regulator to
initiate the process immediately, so that the mutual funds can implement the changes that
are required to trade in derivates.

ROLE OF MUTUAL FUND:

In the year 1992 mutual fund act was passed. The objectives of mutual fund are – to protect
the interest of investors in securities, to promote the development of, and to regulate the
securities market. as far as mutual are concerned, mutual fund formulates policies and
regulation the mutual fund to protect the interest of the investors. Mutual fund notified
regulation for mutual funds in 1993. Thereafter mutual fund sponsored by private sector
entities were allowed to enter the capital market. the regulations were fully revised in 1996
and been amended. Therefore, from time to time mutual fund has also issued guidelines to
the mutual fund from time to time to protect the interest of the investors.
All mutual funds whether promoted by public sector or private sector entities including
those promoted by foreign entities are governed by the same set of regulation. there is no
distinction in regulatory requirement of the mutual fund and all are subject to monitoring
and inspecting by mutual fund. The risks associated with the scheme launched by mutual
funds sponsored by these entities are of similar type.

MUTUAL FUNDS CAN BE CLASSIFIED AS FOLLOW :

Based on their structure:

 Open-ended funds: Investors can buy and sell the units from the fund, at any point
of time.
 Close-ended funds: These funds raise money from investors only once. Therefore,
after the offer period, fresh investments cannot be made into the fund. If the fund is
listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley
Growth Fund). Recently, most of the New Fund Offers of close-ended funds
provided liquidity window on a periodic basis such as monthly or weekly.
Redemption of units can be made during specified intervals. Therefore, such funds
have relatively low liquidity.

Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments. With
fluctuating share prices, such funds show volatile performance, even losses. However, short
term fluctuations in the market, generally smoothens out in the long term, thereby offering
higher returns at relatively lower volatility. At the same time, such funds can yield great
capital appreciation as, historically, equities have outperformed all asset classes in the long
term. Hence, investment in equity funds should be considered for a period of at least 3-5
years. It can be further classified as:
i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked.
Their portfolio mirrors the benchmark index both in terms of composition and individual
stock weight ages.

ii) Equity diversified funds- 100% of the capital is invested in equities spreading across
different sectors and stocks.
iii|) Dividend yield funds- it is similar to the equity diversified funds except that they
invest in companies offering high dividend yields.

iv) Thematic funds- Invest 100% of the assets in sectors which are related through some
theme.
e.g. -An infrastructure fund invests in power, construction, cements sectors etc.

v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector
fund will invest in banking stocks.

vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

Balanced fund:

Their investment portfolio includes both debt and equity. As a result, on the risk-return
ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds
vehicle for investors who prefer spreading their risk across various instruments. Following
are balanced funds classes:

i) Debt-oriented funds -Investment below 65% in equities.

ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.

Debt fund: They invest only in debt instruments, and are a good option for investors averse
to idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-
income instruments like bonds, debentures, Government of India securities; and money
market instruments such as certificates of deposit (CD), commercial paper (CP) and call
money. Put your money into any of these debt funds depending on your investment horizon
and needs.

i) Liquid funds- These funds invest 100% in money market instruments, a large portion
being invested in call money market.

ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-
bills.
iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt
instruments which have variable coupon rate.

iv) Arbitrage fund- They generate income through arbitrage opportunities due to mis-
pricing between cash market and derivatives market. Funds are allocated to equities,
derivatives and money markets. Higher proportion (around 75%) is put in money markets,
in the absence of arbitrage opportunities.

v) Gilt funds LT- They invest 100% of their portfolio in long-term government securities.

vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in
long-term debt papers.

vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure
of 10%-30% to equities.

viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of
the fund.

INVESTMENT STRATEGIES:

1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed
date of a month. Payment is made through post dated cheques or direct debit facilities. The
investor gets fewer units when the NAV is high and more units when the NAV is low. This
is called as the benefit of Rupee Cost Averaging (RCA)

2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and give
instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same
mutual fund.

3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then
he can withdraw a fixed amount each month.
RISK V/S. RETURN:

MAJOR PLAYERS

1. Bank Sponsored
1. Joint Ventures - Predominantly Indian
1. SBI Funds Management Private Ltd.
2. Others
1. BOB Asset Management Co. Ltd.
2. Canara bank Investment Management Services Ltd.
3. UTI Asset Management Co. Private Ltd.
2. Institutions
1. Jeevan Bima Sahayog Asset Management Co. Ltd.
3. Private Sector
1. Indian
1. Benchmark Asset Management Co. Private Ltd.
 2. Cholamandalam Asset Management Co. Ltd.
3. Credit Capital Asset Management Co. Ltd.
4. Escorts Asset Management Ltd.
5. J. M. Financial Asset Management Private Ltd.
6. Kotak Mahindra Asset Management Co. Ltd.
7. Reliance Capital Asset Management Ltd.
8. Sahara Asset Management Co. Private Ltd
9. Sundaram Asset Management Co. Ltd.
10. Tata Asset Management Ltd.
2. Joint Ventures - Predominantly Indian
1. Birla Sun Life Asset Management Co. Ltd.
2. DSP Merrill Lynch Fund Managers Ltd.
3. HDFC Asset Management Co. Ltd.
4. Prudential ICICI Asset Management Co. Ltd.
3. Joint Ventures - Predominantly Foreign
1. ABN AMRO Asset Management (India) Ltd.
2. Deutsche Asset Management (India) Private Ltd.
3. Fidelity Fund Management Private Ltd.
4. Franklin Templeton Asset Management (India) Private Ltd.
5. HSBC Asset Management (India) Private Ltd.
6. ING Investment Management (India) Private Ltd.
7. Morgan Stanley Investment Management Private Ltd.
8. Principal Pnb Asset Management Co. Private Ltd.
9. Standard Chartered Asset Management Co. Private Ltd

INDUSTRY PROFILE AND COMPANY PROFILE

ICICI Bank Limited (the Bank), incorporated on January 5, 1994, is a banking company. The
Bank is engaged in providing a range of banking and financial services, including
commercial banking, retail banking, project and corporate finance, working capital finance,
insurance, venture capital and private equity, investment banking, broking and treasury
products and services.
The Bank's business segments are Retail banking, Wholesale banking, Treasury, Other
banking, Life insurance, General insurance and Others. The Retail banking segment includes
exposures, which satisfy the criteria of orientation, product, granularity and low value of
individual exposures for retail exposures laid down in Basel Committee on Banking
Supervision document International Convergence of Capital Measurement and Capital
Standards. Wholesale Banking includes all advances to trusts, partnership firms, companies
and statutory bodies, which are not included under Retail Banking. Treasury includes the
entire investment and derivative portfolio of the Bank. Other banking includes leasing
operations and other items not attributable to any particular business segment of the Bank.
Life insurance represents results of ICICI Prudential Life Insurance Company Limited.
General insurance represents results of ICICI Lombard General Insurance Company Limited.
Others includes ICICI Home Finance Company Limited, ICICI Venture Funds Management
Company Limited, ICICI International Limited, ICICI Securities Primary Dealership
Limited, ICICI Securities Limited, ICICI Securities Holdings Inc., ICICI Securities Inc.,
ICICI Prudential Asset Management Company Limited, ICICI Prudential Trust Limited,
ICICI Investment Management Company Limited, ICICI Trusteeship Services Limited and
ICICI Prudential Pension Funds Management Company Limited.
The Bank has a network of approximately 18,210 branches and automated teller machines
(ATMs). The Bank's mVisa service allows customers to scan a Quick Response (QR) Code at
merchant outlets and make a payment. Its Eazypay enables customers of all banks to pay
merchants online without any registration. Voice Biometric enables the Bank to recognize its
customers' voices over the phone, allowing them to access their accounts. Its iLoans
application allows customers to track and access all their loan-related details. Its
Money2World is an online outward remittance service for resident Indians. The Bank has
approximately 110 Touch Banking branches across over 30 cities. The Bank has opened over
20 million Basic Savings Bank Deposit Accounts (BSBDA) through its branch and Business
Correspondent (BC) network.
The Bank offers a suite of banking products and solutions to Small and Medium Enterprises
(SMEs) for meeting their business and growth requirements. The Bank also offers supply
chain financing solutions and small-ticket funding to the channel partners of large corporates.
The Wholesale Banking Group (WBG) provides customized solutions to corporate clients by
analyzing their specific business and financial needs. It provides an array of financial
solutions for working capital finance, export finance, trade, transaction and commercial
banking, foreign exchange and derivative products and rupee, as well as foreign currency
term loans. The Commercial Banking Group manages banking transactions, trade based
requirements and cash management needs of corporate customers. Its treasury operations
comprise the Asset Liability Management Group, Markets Group and Proprietary Trading
Group. The Asset Liability Management Group actively manages the Bank's liquidity and
securities portfolio held for compliance with statutory and regulatory requirements. The
Markets Group offers foreign exchange and derivative solutions to clients. The Proprietary
Trading Group manages trading positions within the approved risk limits. The Bank's
international banking is focused on providing end-to end solutions for the international
banking requirements of its Indian corporate clients and leveraging economic corridors
between India and the rest of the world.
The Bank's international footprint consists of subsidiaries in the United Kingdom and
Canada, branches in the United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Dubai
International Finance Centre, Qatar Financial Centre, China and South Africa, and
representative offices in the United Arab Emirates, Bangladesh, Malaysia and Indonesia. The
Bank's subsidiary, (ICICI Bank UK Plc), has approximately eight branches in the United
Kingdom and a branch each in Belgium and Germany. ICICI Bank Canada also has over
eight branches. The Bank has developed customized financial products and services to cater
to a range of rural customers, including farmers, traders, processors, as well as rural
entrepreneurs. The Bank caters to the financial needs of women entrepreneurs through its
Self-Help Group (SHG) program as a part of its microfinance initiatives.
HISTORY :
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access
to low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's
financing and banking operations, both wholesale and retail, have been integrated in a single
entity.

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Selection: After accessing the quality of the interview you will be selected for a suitable job
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you, one day before you join the respective office in the branch assigned to you.

We sincerely hope that you clear this process and look forward to having you as a trusted and
proud member of the ICICI Bank family.

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ORGANISATIONAL STRUCTURE

ICICI Bank’s organization structure is designed to be flexible and customer focused,

while seeking while seeking to ensure effective control and supervision and consistency in
standards across the organization and align all areas of operations to overall organizational
objectives. The organization structure is divided into six principal groups Retail Banking,
Wholesale Banking, International Banking, Rural (Micro-Banking) and Agriculture Banking,
Government Banking and Corporate Center.

RETAIL BANKING:

The Retail Banking Group is responsible for products and services for retail
customers and small enterprises including various credit products, liability products,
Distribution of third party investment and insurance products and transaction banking
services.

WHOLESALE BANKING:

The Wholesale Banking Group is responsible for products and services for large and
medium-sized corporate clients, including credit and treasury products, investment banking,
project finance, structured finance and transaction banking services.

INTERNATIONAL BANKING:

The International Banking Group is responsible for its international operations,

including operations in various overseas markets as well as its products and services for non
resident Indians and its international trade finance and correspondent banking relationships.

RURAL AND AGRICULTURAL BANKING:

The Rural, Micro-Banking & Agri Business Group is responsible for envisioning and
implementing rural banking strategy, including agricultural banking and micro-finance.

GOVERNMENT BANKING:

The Government Banking Group is responsible for government banking initiatives.

CORPORATE BANKING:

Its corporate banking strategy is based on providing comprehensive and customized

financial solutions to its corporate customers. It offer a complete range of corporate banking
products including rupee and foreign currency debt, working capital credit, structured
financing, syndication and transaction banking products and services. Fiscal 2008 saw
continued demand for credit from the corporate sector, with growth and additional investment
demand across all sectors. We were able to leave rage our international presence and deep
corporate relationships to work on overseas acquisitions made by Indian companies and
infrastructure projects in India. During fiscal 2008 we were involved in 75% of outbound
mergers and acquisitions deals from India. We are now a preferred partner for Indian
companies for syndication of external commercial borrowings and other fundraising in
international markets and have been ranked number one in off shore loan syndications of
Indian corporate in calendar year 2007.

PRODUCTS AND SERVICES OF ICICI

ICICI Bank offers a wide range of banking accounts such as Current, Saving, Life
Plus Senior, Recurring Deposit, Young Stars, Salary Account etc. tailor made for every
customer segments, from children to senior citizens, Convenience and ease to access are the
benefits of ICICI Bank accounts.

YOUNG STARS ACCOUNT:

A special portal for children to learn banking basics, manage personal finances and
have a lot of fun.

BANK@CAMPUS:
 This student banking services gives students access to their account details at the click
of a mouse. Plus, the student gets a cheque book, debit card and annual Comparatives.

SAVINGS ACCOUNTS:

Convenience is the name of the game with ICICI bank’s savings account. Whether it
is an ATM/debit card, easy withdrawal, easy loan options or internet banking, ICICI bank’s
saving account always keep you in touch of money.

FIXED DEPOSITS:

ICICI Bank offers a range of deposit solutions to meet varying needs at every stage of
life. It offers a range of tenures and other features to suit all requirements.

INSURANCE:

The ICICI group offers a range of insurance products to cover varying needs ranging
from life, pensions and health, to home, motor and travel insurance. The products are made
accessible to customers through a wide network of advisors, banking partners, corporate
agents and brokers with the added convenience of being able to buy online.

LIFE INSURANCE:

The ICICI group provides the many life insurance products through ICICI Prudential
Life Insurance Company.

GENERAL INSURANCE:
 The ICICI group provides the many general insurance products like motor, travel and
home insurance through ICICI Lombard General Insurance Company.

LOANS:

ICICI bank offers a range of deposits solutions to meet varying needs at every stage
of life. It offers a range of tenures and other features to suit all requirements.

HOME LOAN:

The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some
unbeatable benefits to its customers Doorstep Service, Simplified Documentation and
Guidance throughout the Process. It's really easy!

PERSONAL LOAN:

ICICI Bank Personal Loans are easy to get and absolutely hassle free . With
minimum documentation you can now secure a loan for an amount up to Rs. 15 lakhs.

VEHICLE LOANS:

The No. 1 financier for:-

Car loansin the country. Network of more than2500 channel partners in over 1000
locations. Tie-ups with all leading automobile manufacturers to ensure the best deals.
Flexible schemes & quick processing are the main advantages are here. Avail attractive
schemes at competitive interest rates from the No 1 Financier for

Two Wheeler Loansin the country. Finance facility up to 90% of the On Road Cost of the
vehicle, repayable in convenient repayment options and comfortable tenors from 6 months to
36 months.

CARDS:

ICICI Bank offers a variety of cards to suit different transactional needs. Its range
includes Credit Cards, Debit Cards and Prepaid cards. These cards offer you convenience for
financial transactions like cash Withdrawal, shopping and travel. These cards are widely
accepted both in India and abroad.

CREDIT CARD:

ICICI Bank Credit Cards give you the facility of cash, convenience and a range of
benefits, anywhere in the world. These benefits range from lifetime free cards, Insurance
benefits, global emergency assistance service, discounts, utility payments, travel discounts
and much more.

DEBIT CARD:

The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to
access their bank account around the clock, around the world. The ICICI Bank Debit Card
can be used for shopping at more than 3.5 Lakh merchants in India and 24 million merchants
worldwide.

TRAVEL CARD:
 ICICI Bank Travel Card. The Hassle Free way to Travel the world. Traveling with US
Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take
ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the
convenience of usage of Credit or Debit card.

MOBILE BANKING:

Bank on the move with ICICI Bank Mobile Banking. With ICICI Bank, Banking is no
longer what it used to be. ICICI Bank offers Mobile Banking facility to all its Bank, Credit
Card, Demat and Loan customers. ICICI Bank Mobile Banking can be divided into two broad
categories of facilities:

Alert facility:

ICICI Bank Mobile Banking Alerts facility keeps you informed about the significant
transactions in its Accounts. It keeps you updated wherever you go.

Request facility:

ICICI Bank Mobile Banking Requests facility enables you to query for its account
balance.

INVESTMENT PRODUCTS:

Along with Deposit products and Loan offerings, ICICI Bank assists you to manage
its finances by providing various investment options ranging from ICICI Bank Tax Saving
Bonds to Equity Investments through Initial Public Offers and Investment in Pure Gold.
ICICI Bank facilitates following investment products:

• ICICI Bank Tax Saving Bonds

• Government of India Bonds

• Investment in Mutual Funds

• Initial Public Offers by Corporate

• Investment in "Pure Gold"

• Foreign Exchange Services

• Senior Citizens Savings Scheme,

BANKING:

Internet banking is available to all ICICI bank savings and deposit account holders,
credit card, demat and loan customers. Internet banking service offers customers a world of
convenience with services such as balance enquiry, transaction history, account Comparative,
bill payments, and fund transfers and accounts related service requests.

ATMs:

With more than 2500 ATMs across the country, ICICI Bank has one of the
largest ATM networks in India.

PHONE BANKING:

Phone banking offers 24*7 service across liability, asset and investment products to
both retail and corporate customers.

NRI-BANKING:

A gamut of services to take care of all NRI banking needs including deposits, money
transfers and private banking.

MONEY2INDIA:
 A complete range of online and offline money transfer solutions to send money to
India Requirements.

BRANCHES:

ICICI Bank has a network of over 630 branches (of which 51are extension counters)
across the country. The network puts a wide range of banking products and financial services
within easy reach of retail and corporate customers.
 CHAPTER II

REVIEW OF LITERATURE

REVIEW OF LITERATURE

INTRODUCTION

It is necessary since it familiarizes the researches with concepts and conclusions

already evolved by earlier analysts. It also enables the present researcher to find out the scope
for further study and to frame appropriate objectives for the proposed evaluation. Since the
proposal of the study is to measure the Study on Financial Comparative analysis At Nero air
filters corporation limited. The previous studies in this area of researches are briefly
reviewed. It also includes the opinions expressed by various authors in leading articles,
journals, books etc.

1. A.S. Shiralashetti in their paper “Performance appraisal of the ICICI

PRUNDENTIAL IN TRICHY A Case Study” discusses about the trends in capital
employed and net worth of the firm. It also considered the trends in sales, cost of
goods sold, gross profit/loss and net profit/loss during the period. The result were
found that the overall performance of the ICICI PRUNDENTIAL IN TRICHY has
been poor from 2002-2003 to 2008-09.
2. Chundawat and Bhanawat (2000) analyzed the working capital management
practices in IDBI assisted tube and type companies for the period 1994-1998 by using
some relevant ratios and concluded that the working capital management ;of IDBI
assisted companies was more effective than the industry as a whole.
3. Deloof 2003 discussed that most of the firms had a large amount of each invested in
working capital. It can therefore be expected that the way in which working capital is
managed will have a significant impact on profitability of those firm. Using
correlation and regression tests he found a significant negative relationship between
gross operating income and the number of days accounts receivable, inventories and
accounts payable of firms. On the basis of these results he suggested that managers
could create value for their shareholders by reducing the number of days’ accounts
receivable and inventories to a reasonable minimum.
4. Dheenadayalan V. and Mrs. R. Deviananbrasi (2007) he had suggested that the
“Z” score of the sample units remain below the grey area from 1997-07 but in the year
2001-02, the “Z” score is -0.29. After 2001-02, the decreases in the score indicate that
the sample unit is not financially sound and healthy. The sample units need to put in
efforts to increases the score. This will help the sample unit to avoid any damage to its
liquidity and solvency positions, thereby avoiding financial distress and bankruptcy.
5. Dr. Hamandou Boubacar(2011) in their paper “The financial performance of
foreign Bank subsidiaries” discuss about the relationship between the performance of
bank foreign subsidiaries and the degree of the implication of the present banks in the
organization and the management of their activities abroad. The result were found that
ownership means share of the capital held by the parent bank.
6. Dr. K. Srinvas(2010) in their paper “Pre and Post Merger financial performance of
merged Banks in India”- A selected study is conducted and analysis the financial
performance of Bank of Baroda, Punjab National Bank, Oriental Bank of Commerce,
HDFC Bank, ICICI Bank and Centurions Bank of Punjab. Then found that the private
sector merged banks performed well as compared to the public sector merged banks.
7. Dr. P.B. Bhatasna and J.R. Raiyani (2011) in their paper “A study on Financial
Health of Textile Industry in India: A “Z” – Score Approach” revealed that all the
sample companies like SPML Ltd and WIL Ltd were financially sound enough during
the study period bearing SSML and SKNL which had slightly lower “Z” score on the
basis of average scores during the study period.
8. Dr. Prasanta Paul (2011) in their paper, “financial performance evaluation – A
Comparative study of some selected “NBFCS” found that selected companies differ
significantly in terms of their financial performance indicators from one to another
may be fer sha different services they provide.
9. Eijelly, 2004 elucidated that efficient liquidity management involves planning and
controlling current assets and liabilities. The relation between profitability and
liquidity was examined, as measured by current ratio and cash gap (cash conversion
cycle) on a sample of joint stock companies using correlation and regression analysis.
The study found that the the cash conversion cycle was of more importance as a
measure of liquidity than the current ratio that affects profitability. The size variable
was found to have significant effect on profitability at the industry level. The result
was stable and had important implications for liquidity management.
10. G.Foster in his study on financial analysis stated that “it is the process of identifying
the financial strength and weakness of the firm by properly establishing relationship
between the item in the balance sheet and the profit and loss account. Financial
analysis can be under taken by management of the firms, or by parties outside the firm
, viz., owners, creditors, investors and others.
11. M.Kannandasan (2007) he has made an attempt to have an insight into the
examination of financial health of a watch company in India. To evaluate the financial
conditions and performance of a company, this study used the Z-Score model, and
finally, it was concluded that the financial health of the company was good and
financial viability is also healthy.
12. M. Velavan (2010) in his study measures “Financial Health of E.I.D. Parry Sugar
Limited using “Z” scores Model- A Case Study”. In this study, the financial health of
E.I.D Parry Sugars Limited as per Altman guide lines, the financial health of the
sample units were tested through Z-Score and finally, it was concluded that the
financial health of the company was good and financial viability is also healthy.

13. In his article, Joh Literature review is a study involving a collection of literatures in
the selected area of research in which the researcher has limited experience, and
critical examination and comparison of them to have better understanding. It also
helps the researchers to update with the past data, data sources and results and identify
the gap for further research, if any. Thus, the reviews in the present study consist of
the ones discussed below, and they reveal there are very scant studies in India
emphasizing fundamental analysis of the banking sector.
14. Colnan (2014), senior Research from SHAN Stockbroking's Research Department,
provides some brief pointers on what information to look for and how to make sense
of what is available.
15. Mark P Bauman (2016) conducted a study, namely, "A Review of Fundamental
Analysis Research in Accounting". This paper has outlined the development of a
fundamental valuation model and reviewed related empirical work. First, an
accounting-based expression for firm's equity value has been developed into a rich
theoretical framework. The study verified its descriptive validity regarding the
mapping of accounting numbers into stock prices. This paper identified three major
issues associated with practical implementation of the model: the prediction of future
 profitability, the length of appropriate forecast horizon, and the determination of the
appropriate discount rate.
16. Godse (2016) examined the application of new model , i.e., "Capital Adequacy,
Assets Quality, Management, Earning Quality, Liquidity, Systems and Control", for
evaluating the performance of banks.
17. Jim Berg (2009) conducted a study—"Fundamental Analysis Using Internet". This
paper examined that fundamental analysis looks at the fundamental issues that drive
the value of a particular company. These issues include its financial position, its
industry sector, and the current economic environment. The objective was to identify
companies that may be considered undervalued in the market with a view to investing
when the time is right. In this article, Jim Berg outlined more about what Fundamental
analysis is and how it could be used. To measure customer satisfaction with different
aspects of service quality, Parasuraman, Valerie Zeithaml and Berry developed a
survey research instrument called SERVQUAL. It is based on the premise that the
customers can evaluate a firm's service quality by comparing their perceptions of its
service with their own expectations. SERVQUAL is seen as a measurement tool that
can be applied across broad spectrum of service industries. In its basic form, the scale
contains 21 perception items and a series of expectation items, reflecting the five
dimensions of service quality.
18. Ruchi trehan and Niti soni (2003) attempts to analyze the operating efficiency and
its relationship with profitability, in the public sector banking industry in India. The
analysis of the relationship between the group status and technical efficiency shows
that 1) the banks affiliated to the SBI group are more efficient than nationalized banks
and 2) the difference in the efficiency levels of these two groups is statistically
significant.
19. P Janaki Ramadu & S.Durga Rao (2006) attempts to analyze the profitability of the
three major banks in India: SBI, ICICI, and HDFC. The variables taken for the study
are Operating Profit Margin (OPM), Net Profit Margin (NPM), Return on Equity
(RoE), Earnings per Share (EPS), Price Earnings Ratio (PER), Dividends per Share
(DPS), and Dividends Payout Ratio (DPR)
20. Nalini Prava Tripathi(2006) attempts to analyze the factors that are essential in
influencing the investment decision of the customers of the public sector banks. For
this purpose, Factor Analysis, which is the most appropriate multivariate technique,
has been used to identify the groups of determinants. Factor analysis identifies
 common dimensions of factors from the observed variables that link together the
seemingly unrelated variables and provides insight into the underlying structure of the
data. Secondly, this study also suggests some measures to formulate marketing
strategies to lure customers towards banks.
21. Swindle, C, (2005) This study uses the capital adequacy component of the rating
system to assess whether regulators in the 1980s influenced inadequately capitalized
banks to improve their capital. Using a measure of regulatory pressure that is based on
publicly available information, I find that inadequately capitalized banks responded to
regulators' demands for greater capital.This conclusion is consistent with that reached
by Keeley (2008). Yet, admeasure of regulatory pressure based on confidential capital
adequacy ratings reveals that capital regulation at national banks was less effective
than at state chartered banks.
22. Cole, Rebel A. and Gunther (2005) Their findings suggest that, if a bank has not
been examined for more than two quarters, off-site monitoring systems usually
provide a more accurate indication of survivability than its rating. The lower
predictive accuracy for ratings "older" than two quarters causes the overall accuracy
of ratings to fall substantially below that of off-site monitoring systems. The higher
predictive accuracy of offsite systems derives from both their timeliness-an updated
off-site rating is available for every bank in every quarter-and the accuracy of the
financial data on which they are based. Cole and Gunther conclude that off-site
monitoring systems should continue to play a prominent role in the supervisory
process, as a complement to on-site examinations.
23. Gilbert R., Meyer A., & Vaughan M. (2000) This article examines the potential
contribution to bank supervision of a model designed to predict which banks will have
their supervisory ratings downgraded in future periods. Bank supervisors rely on
various tools of off-site surveillance to track the condition fogbanks under their
jurisdiction between on-site examinations, including econometric models. One of the
models that the Federal Reserve System uses for surveillance was estimated to predict
bank failures. The number of banks downgraded to problem status in recent years has
been substantially larger than the number of bank failures. During a period of few
bank failures, the relevance of this bank failure model for surveillance depends to
some extent on the accuracy of the model in predicting which banks will have their
supervisory ratings downgraded to problem status in future periods. This paper
compares the ability of two models to predict downgrades of supervisory ratings to
 problem status: the Board staff model, which was estimated to predict bank failures,
and a model estimated to predict downgrades of supervisory ratings. We find that both
models do about as well in predicting downgrades of supervisory ratings for the early
2000s. Over time, however, the ability of the downgrade model to predict downgrades
improves relative to that of the model estimated to predict failures. This pattern
reflects the value of using a model for surveillance that can be re-estimated
frequently. We conclude that the downgrade model may prove tope a useful
supplement to the Board's model for estimating failures durinperiods when most
banks are healthy, but that the downgrade model should not be considered a
replacement for the current surveillance framework.

24. Lacewell, Stephen Kent (2001). Stage one in the estimation of cost and alternative
profit efficiency scores using a national model and a size-specific model. Previous
research referred in the paper asserts that an efficiency component should be added to
the current regulatory rating system to account for the ever-increasing diverse
components of modern financial institutions. Stage two is the selection and
computation of financial ratios deemed to be highly correlated with each component
of the rating. The research shows that there is definitely a relationship between bank
efficiency scores and financial ratios used to proxy a bank's rating. It is also evident
that certain types of efficiency models are better suited to large banksthan to small
banks and vice versa.
25. Richard S Barr, Kory A Killgo, Thomas F Siems, & Sheri Zimmel.(2002) This
study reviews previous research on the efficiency andperformanceof financial
institutions and uses Siems and Barr's (2008) data envelopment analysis (DEA) model
to evaluate the relative productive efficiency of US commercial banks 2004-2008. It
explains the methodology, discusses the input and output measures used and relates
bank performance measures to efficiency. It describes the rating system used by bank
examiners and regulators; and finds that banks with high efficiency scores also have
strong Ratings. The study summarizes the other relationship identified and
recommends the use of DEA to help analysts and policy makers understand
organizations in greater depth, regulators and examiners to develop monitoring tools
and banks to benchmark their processes.
26. Godlewski (2003) has tested the validity of the rating typology forbank'sdefault
modification in emerging markets. He focused explicitly on using a logical model
 applied to a database of defaulted banks in emerging markets. He found that the
principle results of the early warning signals models follow the typology. The proxy
variables of bank solvability, assets' quality and liquidity, particularly loan losses
provisions, management quality, profitability, and intermediation rate have a negative
impact on the one year probability of bank’s default.
27. Said and Saucier (2003) examined the liquidity, solvency and efficiency of Japanese
Banks. Using rating methodology, for a representative sample of Japanese banks for
the period 2003-2009, they evaluated capital adequacy, assets and management
quality, earnings ability and liquidity position .They quantified bank’s managerial
quality by calculating X-inefficiency using data envelopment analysis (DEA). Results
support the view that the major problem of failed banks was not inefficiency of
management, but below standard capital adequacy and considerable problems in their
assets quality. Significantly above average efficiency of ailing banks could be
explained by a survival strategy that pushed them to drastically improve management.
28. Derviz et al. (2004) investigated the determinants of the movements in the long term
Standard & Poor’s and bank ratings in the Czech Republic during the period when
the three biggest banks, representing approximately 60%of the Czech banking sector's
total assets, were privatized (i.e., the time span 2008-2011). The same list of
explanatory variables corresponding to the rating inputs employed by the Czech
National Bank's banking sector regulators were examined for both ratings in order to
select significant predictors among them. They employed an ordered response logit
model to analyze the monthly long-run S&P rating and a panel data framework for the
analysis of thequarterly rating.
29. Gasbarro et al. (2004) examined the changing financial soundness of Indonesian
banks during the crisis. During the recent Southeast Asian financial crisis, numerous
banks failed quickly and unexpectedly. This study used a unique data set provided by
Bank Indonesia to examine the changing financial soundness of Indonesian banks
during this crisis. Bank Indonesia's non-public ratings data allowed the use of a
continuous bank soundness measure rather than ordinal measures. They argued that
the nature of the risks facing the Indonesian banking community calls for the addition
of a systemic risk component to the Indonesian ranking system. The empirical results
show that during Indonesia's stable economic periods, four of the five traditional
components provided insights into the financial soundness of Indonesian banks.
30. Baral (2005) analyzed the performance of joint ventures banks in Nepal on the basis
of Model. For the purpose of the study data set published by joint venture banks in
their annual reports was used. This paper examined the financial health of joint
venture banks in the framework. The health check up was conducted on the basis of
publicly available financial data. It concluded that the health of joint venture banks is
better than that of the other commercial banks. In addition, the perusal of indicators of
different components of indicated that the financial health of joint venture banks was
not so strong to manage the possible large scale shocks to their balance sheet and their
health was fair.
31. Kapil (2005) examined the relationship between the ratings and the bank stock
performance. The viability of the banks was analyzed on the basis of the Offsite
Supervisory Exam Model— Model. The M for Management was not considered in
this paper because all Public Sector Banks, (PSBs) were government regulated, and
also because all other four components—C, A, E and L—reflect management quality.
The remaining four components were analyzed and rated to judge the composite
rating. Part A of the study analyzed the interbank performance by determining their
CAEL composite score. Part B of the study assessed the relation between the banks’
composite ratings with the banks’ stock performance. The paper revealed that the Off-
site Supervisory Exam Model, , is related to the banks’ stock performance it he capital
market.
32. Hirtle and Lopez, (2005),This research paper was carried out; to find the adequacy
of in capturing the overall performance of a bank; to find the relative weights of
importance in all the factors in ; and lastly to informant the best ratios to always adopt
by banks regulators in evaluating banks ‘efficiency. In addition, the best ratios in each
of the factors in were identified. For example, the best ratio for Capital Adequacy was
found to be the ratio of total shareholders' fund to total risk weighted assets. The
paper concluded that no one factor in suffices to depict the overall performance of a
bank. Among other recommendations, banks' regulators are called upon to revert to
the best identified ratios in when evaluating banks performance.

33. Sarker (2005) examined the model for regulation and supervision of Islamic banks by
the central bank in Bangladesh. With the experience of more than two decades the
 Islamic banking now covers more than one third of the private banking system of the
country and no concerted effort has been made toad a Shariah component both in on-
site and off-site banking supervision system of the central bank. Rather it is being
done on the basis of the secular supervisory and regulatory system as chosen for the
traditional banks and financial institutions. To fill the gap, an attempt had been made
in this paper to review the standard set by the BASEL Committee for off-site
supervision of the banking institutions. This study enabled the regulators and
supervisors to get a Shariah benchmark to supervise and inspect Islamic banks and
Islamic financial institutions from an Islamic perspective.

CHAPTER III
RESEARCH METHDOLOGY
NEED FOR THE STUDY:

 Financial Comparative analysis is an important tool for measuring the

financial Comparative of any company.
 The main aspect of financial management is working capital management and it
should be done on day-to-day basis.
 Hence the company permits me to do in the area of finance. This study helps to
review the financial Comparative of the company.

SCOPE OF THE STUDY

 The scope of the study to find out the financial Comparative of the ICICI
PRUNDENTIAL IN TRICHY Last five years

 The sincere attempt has been made to include all the aspect relating to the study

 For this purpose of analysis financial Comparative of the company has done from the
last four year published financial Comparative and all the aspects the researcher
should be included in the report.

SIGNIFICANCE RATIOS

 Some ratios are important than others and the firm may classify them as primary and
secondary ratios. The primary ratio is one, which is of the prime importance to a
concern. The other ratios that support the primary ratio are called secondary ratios.
COMPARATIVE OF THE PROBLEM

 Nowadays due to the policy of the changing government and also due to the
competition in the globalize era, the financial performance of the ICICI
PRUNDENTIAL IN TRICHY is not appreciable. Though the company developed
well, it could not earn much profit as like the other private sectors company involved
in similar business. There is no proper instruction from the authorities and from the
ministry. Further there is considerable delay in implementing the new system because
of more formalities to change the existing system. The financial performance of the
ICICI PRUNDENTIAL IN TRICHY should be analyzed well increase the profit
and make the company to compete with others doing similar business.

OBJECTIVES OF THE STUDY

To study the financial Comparative analysis of ICICI PRUNDENTIAL IN TRICHY

 To study the financial position of ICICI PRUNDENTIAL IN TRICHY Over the

period of last five years
 To study the fixed asset position of over the period of last five years
 To study the relationship between the current assets and fixed asset
 To estimate the polity and sales for the future period
 To analyze the financial changes over a period of five years.
 To analyze the financial Comparatives of the company by using financial tools.
 To suggest effective measures in the existing system of the company.

RESEARCH METHODOLOGY:

Research means “know about new things”. Sometimes, it may refer to scientific and
systematic search pertinent information on specific topic.
In fact research is an art of scientific investigation.

According to Clifford Woody research comprises of. “define and redefining problem,
formulating hypothesis or suggested solution, collecting, organizing and evaluating data;
making deduction and reaching conclusion; and at last carefully testing the conclusion to
determine whether they fit the formulating hypothesis”.

Redman and Moray define research as a “systematic effort to gain new

knowledge”. Research can be defined as the search of knowledge or any systematic
investigation to establish fact.

The primary purpose for applied research (as opposed to basic research) is
discovering, interpreting, and the development of methods and systems for the advancement
of human knowledge on a wide variety of scientific matters of our world and the universe.
Research can use the scientific method, but need not do so. Research can also be said as a
process that is followed by a person to answer either his/her own queries or somebody else
queries about a particular object, person, subject etc

DATA COLLECTION:

The data collections classified into two types are

 Primary data
 Secondary data

SECONDARY DATA

The secondary data are data are collected from information which is used by other. It is not
direct information. This information is already collected and analysis by other and that
information is used by others. The secondary data are collected from following:-

 Company’s annual report

 Company’s website Manual

DATA ANALYSIS:

The data’s analyzed using the following tools:-

 Comparative Balance sheet

  Common size balance sheet
 Ratio analysis
 Trend Analysis.

LIMITATIONS OF THE STUDY:

 The study is restricted for a period of five years

 Assumed that 5 years are a responsible period to get fault accurate picture Policies
and practices of management of the company.
 Due to the inadequate time it is not possible to analyze all respects relevant to the
study.
 The analysis is based on annual reports of the company.
 Authorities were reluctant to reveal full information about the working of the
Company

CHAPTER IV
DATA ANALYSIS AND INTERPRETATION

INTRODUCTION OF THE TOPIC

MEANING OF FINANCIAL COMPARATIVES

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

 The Balance Sheet

 Profit And Loss Account

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

MEANING OF FINANCIAL ANALYSIS

1. The term financial analysis is also known as ‘analysis and interpretation of financial
Comparatives’ refers to the process of determining financial strength and weakness of
the firm by establishing strategic relationship between the items of the Balance Sheet,
Profit and Loss account and other operative data.
2. The first task of financial analysis is to select the information relevant to the decision
under consideration to the total information contained in the financial Comparative.
The second step is to arrange the information in a way to highlight significant
relationship. The final step is interpretation and drawing of inference and conclusions.
Financial Comparative is the process of selection, relation and evaluation.

FEATURES OF FINANCIAL ANALYSIS

 To present a complex data contained in the financial Comparative in simple and
understandable form.
 To classify the items contained in the financial Comparative in convenient and
rational groups
 To make comparison between various groups to draw various conclusions.

PURPOSE OF ANALYSIS OF FINANCIAL COMPARATIVES

 To know the earning capacity or profitability.
 To know the solvency.
 To know the financial strengths.
 To know the capability of payment of interest & dividends.
 To make comparative study with other firms.
 To know the trend of business.
 To know the efficiency of mgt.
 To provide useful information to mgt.

PROCEDURE OF FINANCIAL COMPARATIVE ANALYSIS

The following procedure is adopted for the analysis and interpretation of financial
Comparatives:-
 The analyst should acquaint himself with principles and postulated of accounting. He
should know the plans and policies of the management so that he may be able to find
out whether these plans are properly executed or not.
 The extent of analysis should be determined so that the sphere of work may be
decided. If the aim is find out. Earning capacity of the enterprise then analysis of
income Comparative will be undertaken. On the other hand, if financial position is to
be studied then balance sheet analysis will be necessary.
 The financial data be given in Comparative should be recognized and rearranged. It
will involve the grouping similar data under same heads. Breaking down of individual
components of Comparative according to nature. The data is reduced to a standard
form.
 A relationship is established among financial Comparatives with the help of tools &
techniques of analysis such as ratios, trends, common size, fund flow etc.
 The information is interpreted in a simple and understandable way. The significance
and utility of financial data is explained for help in decision making.
 The conclusions drawn from interpretation are presented to the management in the
form of reports.

TYPES OF FINANCIAL ANALYSIS

There are different ways of analysis the financial Comparatives:

1. ON THE BASIS OF PROCESS OF ANALYSIS

a) Horizontal Analysis: This is used when the financial Comparative of a number of

years are to be analyzed. Such analysis indicates the trends and the increase or
decrease in various items not only in absolute figures but also in percentage form.
This analysis indicates the strengths and weaknesses of the firm. This analysis is also
called as dynamic analysis because it also shows the trend of the business.

b) Vertical Analysis: This is used when financial Comparatives of a particular year or

on a particular date are analyzed. For this type of analysis we generally use common
size Comparatives and the ratio analysis. It involves a study of quantitative
 relationship among various items of balance sheet and profit and loss account. This
type of analysis is static analysis because this is based on the financial results of one
year. Vertical analysis is useful when we have to compare the performance of
different departments of the same company.

c) Among these two types of analysis, horizontal analysis is more useful because it
brings out more clearly the trends of working of a firm. This gives us more concrete
bases for future planning.

2. ON THE BASIS OF INFORMATION AVAILABLE

a) Internal Analysis: This analysis is based on the information available to the business
firm only .Hence internal analysis is made by the management. Internal analysis is
more reliable and helpful for financial decisions.

b) External Analysis: This analysis is made on the basis of published Comparatives,

reports and information’s. This analysis is made by external parties such as creditors,
investors, industry’s, financial analysis etc. external analysis is less reliable in
comparison to internal analysis because of limited and often incomplete information.

3. ON THE BASIS OF NUMBER OF FIRMS

a) Inter-Firm Analysis: When financial analysis of two or more companies or firms are
analyzed and compared over a number of accounting periods, it is called inter-firm
analysis.

b) Intra -Firm Analysis: intra-firm analysis is concerned with the analysis of financial
performance of different units or departments or segments of the same enterprise or company.
Similarly when financial Comparatives of two or more years of the same firm are analyzed
and compared it is also called as intra-firm analysis.

4. ON THE BASIS OF OBJECTIVES

 a) Accounting Analysis: Accounting analysis is analysis of past financial performance
and involves examining how generally accepted accounting principles and conventions have
been applied in arriving at the values of assets, liabilities, revenues and expenses.

b) Prospective Analysis: Prospective analysis involves developing forecasted financial

Comparatives keeping in view the changes that are likely to shape and affect the business
given the assumptions about these changes and the limitation of the forecasting technique
used. This is quite complicated analysis.

METHODS/TOOLS OF FINANCIAL ANALYSIS

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

a. Comparative financial Comparatives

b. Common-size Comparatives
c. Trend analysis
d. Ratio analysis
e. Funds flow analysis
f. Cash flow analysis
g. Breakeven point analysis

a. Comparative Financial Comparatives:

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

 To simplify data
 To make inter period/inter-firm comparison
 To indicate the trends
 to enable forecasting
 To indicate the strengths and weaknesses of the firm
 To compare the performance
 To analyze expenses
 To analyze profits

TOOLS FOR COMPARISON OF FINANCIAL COMPARATIVES

Comparative financial Comparative is a tool of financial analysis that depicts change

in each item of the financial Comparative in both absolute amount and percentage term,
taking the item in preceding accounting period as base.
COMPARISON AND ANALYSIS OF FINANCIAL COMPARATIVES MAY BE
CARRIED OUT USING THE FOLLOWING TOOLS:

1. Comparative Balance Sheet :

The comparative balance sheet shows increase and decrease in absolute terms as well as
percentages, in various assets, liabilities and capital. A comparative analysis of balance sheets
of two periods provides information regarding progress of the business firm. The main
purpose of comparative balance sheet is to measure the short- term and long-term solvency
position of the business.

2. Comparative Income Comparative :

Comparative income Comparative is prepared by taking figures of two or more than two
accounting periods, to enable the analyst to have definite knowledge about the progress of the
business. Comparative income Comparatives facilitate the horizontal analysis since each
accounting variable is analyzed horizontally.
COMMON- SIZE COMPARATIVES:
Common size Comparatives are such Comparatives in which the items of financial
Comparatives are covered into percentage of common base. In common-size income
Comparative, by assuming net sales as 100(i.e %) and other individual items are converted as
percentage of this. Similarly, in common –size balance sheet, total assets are assumed to be
100 (i.e %) and individual assets are expressed as percentage.

OBJECTIVES OF COMMON SIZE COMPARATIVES

1. Presenting the change in various items in relation to total assets or total liabilities or
net sales.
2. Establishing a relationship.
3. Providing a common base for comparison.

TYPES OF COMMON SIZE COMPARATIVES

1. Common-Size Balance Sheet :

A common –size balance sheet is a Comparative in which total of assets or liabilities is
assumed to be equal to 100 and all the figures are expressed as percentage of the total. That is
why it is known as percentage balance sheet.
Common-size balance sheet facilitates the vertical analysis since each item of the Balance
Sheet is analyzed vertically.

2. Common-Size Income Comparative:

Common-size income Comparative is a Comparative in which the figures of net sales is
assumed to be equal to 100 and all other figures of “profit and loss A/c” are expressed as
percentage of net sales. This Comparative facilitates the vertical analysis since each
accounting variable is analyzed vertically. One can draw conclusion, regarding the behavior
of expenses over period of time by examining these percentages.

C. TREND ANALYSIS:
 Trend percentage are very useful is making comparative study of the financial
Comparatives for a number of years. These indicate the direction of movement over a long
time and help an analyst of financial Comparatives to form an opinion as to whether
favorable or unfavorable tendencies have developed.
This helps in future forecasts of various items. For calculating trend percentages any
year may be taken as the ‘base year’. Each item of beast year is assumed to be equal to 100
and on that basis the percentage of item of each year calculated.

RATIO ANALYSIS:

MEANING:

Absolute figures expressed in financial Comparatives by themselves are

meaningfulness. These figures often do not convey much meaning unless expressed in
relation to other figures. Thus, it can be say that the relationship between two figures,
expressed in arithmetical terms is called a ratio.
“According to R.N. Anthon “A ratio is simply one number expressed in terms
another. It is found by dividing one number into the other.”

TYPES OF RATIOS

1. Proportion or Pure Ratio or Simple ratio.

2. Rate or so many Times.
3. Percentage
4. Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO

ANALYSIS
1. Helpful in analysis of financial Comparatives.
2. Simplification of accounting data.
3. Helpful in comparative study.
4. Helpful in locating the weak spots of the business.
 5. Helpful in forecasting
6. Estimate about the trend of the business
7. Fixation of ideal standards
8. Effective control
9. Study of financial soundness.

LIMITATION OF RATIO ANALYSIS

1. False accounting data gives false ratios
2. Comparisons not possible of different firms adopt different
3. Accounting policies.
4. Ratio analysis becomes less effective due to price level
5. change
6. Ratios may be misleading in the absence of absolute data.
7. Limited use of a single Ratio.
8. Window-Dressing
9. Lack of proper standards.
10. Ratio alone are not adequate for proper conclusions
11. Effect of personal ability and bias of the analyst.
CLASSIFICATION OF RATIOS

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

Liquidity Ratios:
These are the ratios which measure the short-term solvency or financial position of a
firm. These ratios are calculated to comment upon the short-term paying capacity of a
concern or the firm’s ability to meet its current obligations.
Long –Term Solvency and Leverage Ratios: Long-term solvency ratios convey a
firm’s ability to meet the interest cost and repayment schedules of its long-term obligation
e.g. Debit Equity Ratio and Interest Coverage Ration. Leverage Ratios.

Activity Ratios:
 Activity ratios are calculated to measure the efficiency with which the resource of a
firm has been employed. These ratios are also called turnover ratios because they indicate the
speed with which assets are being turned over into sales e.g. debtors turnover ratio.

Profitability Ratios:
These ratios measure the results of business operations or overall performance and
effective of the firm e.g. gross profit ratio, operating ratio or capital employed. Generally,
two types of profitability ratios are calculated.
o In relation to Sales, and
o In relation in Investment

FUNCTIONAL CLASSIFICATION IN VIEW OF FINANCIAL MANAGEMENT OR

CLASSIFICATION ACCORDING TO TESTS

Liquidity Ratios Long-term Activity Ratios Profitability Ratios

Solvency and
Leverage Ratios
-Current Ratio Financial Operating Inventory Turnover In Relation to Sales.
-Liquid Ratio Composite Ratio. Gross Profit Ratio.
(Acid) Test or -Debt. Equity Debtors Turnover Operating Ratio.
Quick Ratio. Ratio Ratio Operating Profit
-Absolute liquid or -Debt to Total Fixed Assets Ratio.
-Cash Ratio. Capital Ratio Turnover Ratio Net Profit Ratio.
 -Debtors -Interest Total Asset Expenses Ratio
Turnover Ratio Coverage Ratio Turnover Ratio In relation to
-Creditors Turnover -Capital Gearing Working Capital investments
Ratio Ratio Turnover Ratio. Return on
-Inventory Turnover Payables Turnover Investments.
ratio Ratio Return on capital.
Capital Employed Return on Equity
Turnover Ratio Capital.
Return on total
Resources
Earning per share.
Price Earning Ratio.

CASH-FLOW COMPARATIVE
Cash – flow Comparative is a Comparative showing inflows (receipts) and outflows
(payments) of cash during a particular period. In other words, it is summary of sources and
applications of each during a particular span of time.

OBJECTIVES OF CASH FLOW COMPARATIVE:

1. Useful for Short-Term Financial Planning.
2. Useful in Preparing the Cash Budget.
3. Comparison with the Cash Budget.
4. Study of the Trend of Cash Receipts and Payments.
5. It explains the Deviations of Cash from Earnings.
6. Helpful in Ascertaining Cash Flow from various Separately.
7. Helpful in Making Dividend Decisions.

COMPARATIVE BALANCE SHEET ICICI PRUNDENTIAL IN TRICHY 2013-2014

TO 2016-2017
(Rs. in crores)
Particulars 2013-2014 2014-2015 2015-2016 2016-2017
Absolute % of Absolute % of Absolute % of Absolute % of
change change change change change change change change
Capital and
 liabilities:
Capital 153.08 14 9.51 0.8 213.34 17 0.61 .04
Reserves and 9502.96 80 2097.76 10 21943.61 94 3062.2 7
surplus
Deposits 65264.39 65 65427.02 40 13920.86 6 (26083.23) (11)
Borrowings 4977.41 15 12734.12 33 14392.4 28 1675.26 2.5
Other 3831.71 18 13000.76 51.5 4666.75 12 851.04 2
liabilities and
provisions

Total capital 83729.55 50 93269.17 37 55136.96 16 (20494.12) (5.1)

and liabilities

Assets:

Investments 21060.04 42 19710.45 27.5 20196.5 22 (8396.03) (7.5)

Advances 54757.96 60 49702.49 34 29750.48 15 (7305.23 (3.25)
Fixed assets (57.32) (1.4) (57.3) (1.4) 185.47 5 (307.27) (7.5)
Capital work 51.64 54 41.72 28.2 (189.66) -100 0.00 0.00
in progress
Current assets 7917.23 37 23871.8 81 5194.17 10 (4485.58) (8)
Total assets: 83729.55 50 93269.16 37 55136.96 16 (20494.11) (5.1)

INTERPRETATION
 The capital of industry increased by 14% in 2013-2014, 0.8% in 2014-2015, 17% in
2016-2017,and .04 % in 2016-2017.This shows that there is fluctuation in the rate of
increase in the capital. In 2013-2014 and 2015-2016 the rate of increase in capital is
more than that of 2015-2016 and 2016-2017.
 There is a huge fluctuation in the rate of increase in reserves and surplus also. This
shows that industry is effectively utilizing its reserves and surplus.
 In 2013-2014 deposits increase by 65%, in 2014-2015 it increased by 40%, and an
increase of 6% in 2015-2016 in 2016-2017 deposits fall by 11%.this shows that the
industry has replayed its deposits in this year.

 The borrowings are also showing a fluctuating rate of increase in 2016-2017the

borrowings have increased at a very low rate. This shows that industry has repaid a
large amount of borrowings in this year and thereby reducing the dependence on
outside debt.
  The investments are also increasing but with lower rates compared to the preceding
years
 Similarly advances rose by 60% in 2014-2015 , an increase of 34% in 2015-2016
,15% increase in 2015-2016 and finally decreased by 3.25% in 2016-2017

 Three has been a consistent decline in the fixed assets over years. in 2014-2015and
2015-2016 it decreased by 1.4 % ,increased by 5% in 2015-2016 and again decreasing
by 7.5% in 2016-2017 this is mainly due to increase in the rate of depreciation in the
subsequent years.
 A huge fluctuation is revealed from current assets. it increased by 37% in 2013-2014
,rate of increase rose to 80% in 2014-2015and then the it increased at a much lower
rate i.e at 10%.this shows that the industry is effectively utilizing its working capital.
there is a fall in current assets in 2016-2017 by 8 %.this is mainly due to the
repayment of deposits in the years 2016-2017.

COMPARATIVE INCOME COMPARATIVE OF ICICI PRUNDENTIAL IN

TRICHY FROM 2013-2014 TO 2016-2017
(rs. In crores)
Particulars 2013-2014 2014-2015 2015-2016 2016-2017
Absolute % of Absolute % of Absolut % of Absolute % of
change change change change e change change change change
Income:

Operating 5941 46.3 10156 54.1 10676 37 (902.84) (2.3)

income

Expenditure
:

Interest 3026.56 46 6761.05 70.4 7125.74 43.5 (758.31) (3)

expended
Operating 1180.36 36 2211.05 49.3 1463.62 22 (1109.07 (14)
expenses
Total 4206.92 43 8972.1 64 8589.36 37.2 (1867.38 (5.9)
expenses )
 Operating 1734.67 59 1183.73 25.2 2086.29 35.5 964.54 12.1
profit

Provision 1199.8 126.1 613.58 28.5 1038.78 37.5 1364.14 36

and
contingenci
es
Net profit
for the year 534.87 27 570.15 22.4 1047.51 34 (399.6) (10)
Extraordinar
y items 0.00 0.00 0.00 0.00 0.00 0.00 (0.58) 0.00
Profit
brought 135.13 254.5 105.22 56 704.83 21 1438.05 144
forward

Total 670 32.55 675.37 25 1752.34 51.4 1037.87 20

profit/(loss):

INTERPRETATION:-

 The net profit shows a fluctuating trend i.e it increased by 27% in 2013-2014 ,22.4%
increase in 2014-2015 ,and increased by 34% in 2015-2016 and finally if falls by
10% in 2016-2017 .this may be due to decline in operating income and increased tax
liability in the year 2016-2017.
 The interest expenses from the period 2013-2017 showed an increasing trend but
decreased in 2016-2017 due to repayment of borrowings.
TREND ANALYSIS
TREND PERCENTAGE ICICI PRUNDENTIAL IN TRICHY FROM 2011-2016
(Base year 2012-2017) Percentage (%) figures
Particulars 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
Deposits 100 165 231 245 219
Advances 100 160 214 247 239
Net profit 100 127 155 207 187
TREND PERCENTAGE ICICI PRUNDENTIAL IN TRICHY FROM 2011-2016

250
207
200 187

155
150
127
100
100

50

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

 There is a continuous increase in the deposits till the year ending 2015-2016 followed
by a downfall in the year ending 2016-2017 due to repayment of deposits in this year.
 Similarly advances also shows as increasing trend till the year ending 2015-2016
followed by a slight downfall in the year ending 2016-2017.
  There has been a substantial increase in net profit till the year ending 2012.In four
years it has been more than double. The overall performance of the industry is
satisfactory.

RATIO ANALYSIS

CURRENT RATIO:
An indication of a company's ability to meet short-term debt obligations; the higher
the ratio, the more liquid the company is. Current ratio is equal to current assets divided by
current liabilities. If the current assets of a company are more than twice the current
liabilities, then that company is generally considered to have good short-term financial
strength. If current liabilities exceed current assets, then the company may have problems
meeting its short-term obligations.

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

TABLE 4.1
CURRENT RATIO

Year Current Assets Current Liabilities Current Ratio

(Rs. In crores) (Rs. In crores)
2012-13 21632.56 21396.16 1.01
2013-14 29549.79 25227.88 1.17
2014-15 53421.59 38228.64 1.39
2015-16 58615.76 42895.38 1.36
2016-17 54130.18 43746.43 1.23
CHART 4.1
CURRENT RATIO

1.39 1.36
1.4 1.23
1.17
1.2
1.01
1

0.8

0.6

0.4

0.2

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
An ideal solvency ratio is 2. The ratio of 2 is considered as a safe margin of solvency
due to the fact that if current assets are reduced to half (i.e.) 1 instead of 2, then also the
creditors will be able to get their payments in full.
But here the current ratio is less than 2 and more than 1 which shows that the industry
has current assets just equal to the current liability which is not satisfactory as the safety
margin is very less or zero. Therefore the industry should keep more current assets so that it
can maintain a satisfactory safety margin.
LIQUID RATIO:

Liquid ratio is also known as ‘Quick’ or ‘Acid Test ‘Ratio. Liquid assets refer to assets which
are quickly convertible into cash. Current Assets other stock and prepaid expenses are
considered as quick assets.

Quick Ratio = Total Quick Assets

Total Current Liabilities

Quick Assets = Total Current Assets – Inventory

TABLE 4.2
LIQUID RATIO

Years Current assets Current liabilities Ratio

2012-13 12929.97 21396.16 0.60
2013-14 17040.22 25227.88 0.67
2014-15 37121.33 38228.64 0.97
2015-16 38041.13 42895.38 0.88
2016-17 29966.56 43746.43 0.68
CHART 4.2
LIQUID RATIO

0.97
1 0.88
0.9
0.8 0.68
0.67
0.7 0.6
0.6
0.5
0.4
0.3
0.2
0.1
0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
A quick ratio of 1:1 is considered favorable because for every rupee of current
liability, there is atheist one rupee of liquid assets. A higher value of ratio is considered
favorable. Here this ratio is less than 1 in 2012-2017 it is close to 1 which is not satisfactory.
This means the industry has not managed its funds properly in this particular period.
Therefore industry should rationally utilize its funds to maintain an ideal liquid ratio.

EARNING PER SHARE:

In order to avoid confusion on account of the varied meanings of the term capital employed,
the overall profitability can also be judged by calculating earnings per share with the help of
the following formula:

Earning Per Equity Share = Net Profit after Tax –Prefrence Dividend
No. of Equity shares

The earnings per share of the company help in determining the market price of the
equity shares of the company. A comparison of earning per share of the company with
another will also help in deciding whether the equity share capital is being effectively used or
not. It also helps in estimating the company’s capacity to pay dividend to its equity
shareholders.

TABLE 4.3
EARNING PER SHARE

Net Income Available For No. Of Equity Shares EPS

Year Shareholders (Rs. In crores)
(Rs. In crores)
2012-13 2005.2 73.6716 27.22
2013-14 2540.07 88.9823 28.55
2014-15 3110.22 89.9266 34.59
2015-16 4157.73 111.2687 37.37
2016-17 3758.13 111.325 33.78

CHART 4.3
EARNING PER SHARE
 40 37.37
34.59 33.78
35
28.55
30 27.22

25

20

15

10

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
Earnings per Share is the most commonly used data which reflects the performance
and prospects of the company. It affects the market price of shares. Here the Earning Per
Share is shows a persistent increases till the year 2015-16after that in the year2016-17
Earnings Per share is followed by a downfall due to decline in profits.

DIVIDEND PER SHARE:

It is expressed by dividing dividend paid to equity shareholders by no. of equity

shares. This shows the per share dividend given to equity shareholders. It is very helpful for
potential investors to know the dividend paying capacity of the company. It affects the
market value of the company.
Dividend per Share = Dividend Paid To Equity Shareholders/
No. Of Equity Shares

TABLE 4.4
DIVIDEND PER SHARE

Year Dividend Paid No. Of Equity DPS

(Rs. In crores) Shares
(Rs. In crores)
2012-13 632.96 73.6716 8.59
2013-14 759.33 88.9823 8.53
2014-15 901.17 89.9266 10.02
2015-16 1227.7 111.2687 11.03
2016-17 1224.58 111.325 11

CHART 4.4
DIVIDEND PER SHARE
 12 11.03 11
10.02
10
8.59 8.53
8

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:

Here the Dividend Per Share is increasing year after year except a little decline in
2016-17 otherwise the dividend per share ratio of the industry is quite satisfactory which
shows the industry has a good dividend paying capacity.

NET PROFIT RATIOS:

This ratio indicates the Net margin on a sale of Rs.100. It is calculated as follows:
Net Profit Ratio = Net Profit X 100/ Net Sales
 This ratio helps in determining the efficiency with which affairs of the business are
being managed. An increase in the ratio over the previous period indicates improvement in
the operational efficiency of the business. The ratio is thus on effective measure to check the
profitability of business.

TABLE 4.5
NET PROFIT RATIO
Year Net Profit Sales Net Profit Ratio
(Rs. In crores) (Rs. In crores)
2012-13 2005.2 9409.9 21.3
2013-14 2540.07 13784.49 18.42
2014-15 3110.22 22994.29 13.52
2015-16 4157.73 30788.34 13.5
2016-17 3758.13 31092.55 12.08

CHART 4.5
NET PROFIT RATIO
 25
21.3

20 18.42

13.52 13.5
15 12.08

10

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
Although both the sales and net profit have increased during the above period but the
Net Profit Ratio of the industry is declining continuously. This is because of the reason that
net profits have not increased in the same proportion as of the sales.

OPERATING PROFIT RATIO:

This ratio is calculated as follows:

Operating Profit Ratio = Operating Profit X100/ Net Sales

The difference between net profit ratio and net operating profit ratio is that net operating
profit is calculated without considering non-operating expenses and non-operating incomes.
If we deduct this ratio from 100, the result will be operating ratio. Higher operating profit
ratio enables the organization to recoup non-operating expenses out of operating profits and
provide reasonable return.

TABLE 4.6
OPERATING PROFIT RATIO:

Year Operating Profit Sales Operating Profit

(Rs. In crores) (Rs. In crores) Ratio (in %)
2012-13 2956 9409.9 31.41
2013-14 4690.67 13784.49 34.02
2014-15 5874.4 22994.29 25.54
2015-16 7960.69 30788.34 25.85
2016-17 8925.23 31092.55 28.7

CHART 4.6
OPERATING PROFIT RATIO:
 34.02
35 31.41
28.7
30 25.85
25.54
25

20

15

10

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
In the year 2012-13 the operating profit is 31.41% & 34.02% respectively. After that
it has been consistently declined from the year 2015-16 and again gaining momentum in
2017. This may be due to the reason that operating expenses have been increased more as
compared to sales during the above period consequently reducing the operating profits.
Therefore the industry should check on unnecessary operating expenses to correct this
situation and to provide a sufficient return.

RETURN ON NET WORTH:

It measures the profitability of the business in view of the shareholders. It judges the
earning capacity of the company and the adequacy of return on proprietor’s funds.
Shareholders and potential investors are interested in this ratio.

It is calculated as below:
Return on Net Worth = Net Profit after Interest and Tax x 100/ Shareholder’s Funds
TABLE 4.7
RETURN ON NET WORTH:

Year Net Profit After Interest Shareholder's Fund Return On Net

And Tax Worth (in %)
(Rs. In crores) (Rs. In crores)
2012-13 2005.2 12899.97 15.54
2013-14 2540.07 22555.99 11.26
2014-15 3110.22 24663.26 12.61
2015-16 4157.73 46820.21 8.88
2016-17 3758.13 49883.02 7.53

CHART 4.7
RETURN ON NET WORTH:
 15.54
16

14 12.61
11.26
12

10 8.88
7.53
8

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
The net profit after interest and tax have increased slowly till the year 2015-16 followed by a
downfall due to high interest payments, operating expenses and taxation liability.
Consequently the net worth ratio has declined considerably and has reduced to more than half
in the year 2016-17 than it was in 2016-17

RETURN ON CAPITAL EMPLOYED:

It establishes relationship between profit before interest and tax and capital employed.
It indicates the percentage of return on the total capital employed in the business. This ratio is
also known as Return on Investment. It measures the overall efficiency and profitability of
the business in relation to investment made in business. It also shows how efficiently the
resources are used in the business. Comparison of one unit with that of the other or
performance in one year with that of the same unit is possible. It is calculated as below:

TABLE 4.8
RETURN ON CAPITAL EMPLOYED:

Year Net Profit Before Capital Employed Return On Capital

Interest And Tax Employed (in %)
(Rs. In crores) (Rs. In crores)
2012-13 9098.09 146263.25 6.22
2013-14 12694.05 226161.17 5.61
2014-15 20006.54 306429.48 6.52
2015-16 28540.34 356899.69 7.99
2016-17 27842.9 335554.53 8.29

CHART 4.8
RETURN ON CAPITAL EMPLOYED:
 9 8.29
7.99
8

7 6.52
6.22
6 5.61

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
The above table exhibits the return on capital employed ratio of the industry for last
five years. This ratio measures the earning of the net assets of the business. The ratio was
6.22% in year 2012-13. After that it raised to the tune of 5.61%, 6.52%, 7.99% and 8.29% in
year 2012-13 to 2016-17 years respectively. It leads to the conclusion industry rising but very
little proportion of return on capital employed.

DEBT- EQUITY RATIO:

The Debt-Equity ratio is calculated to find out the long-term financial position of the
firm. This ratio indicates the relationship between long-term debts and shareholder’s funds.
The soundness of long-term financial policies of a firm can be determined with the help of
this ratio.
It helps to assess the soundness of long-term financial policies of a business. It also
helps to determine the relative stakes of outsiders and shareholders. Long-term creditors can
assess the security of their funds in a business. it indicates to what extent a firm depends upon
lenders to meet its long-term financial requirements. A low Debt-Equity ratio is considered
better from the point of view of creditors.

TABLE 4.9
DEBT- EQUITY RATIO:

Year Debt Equity Debt Equity Ratio

(Rs. In crores) (Rs. In crores)
2012-13 154759.45 12899.97 11.99
2013-14 228832.96 22555.99 10.14
2014-15 319994.86 24663.26 12.97
2015-16 352974.87 46820.21 7.53
2016-17 329417.94 49883.02 6.6

CHART 4.9
DEBT- EQUITY RATIO:
 14 12.97
11.99
12
10.14
10
7.53
8 6.6

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
The ratio shows the extent to which funds have been provided by long-term creditors as
compared to the funds provided by the owners. Here the Debt-Equity ratio for the above
period is always high. This shows that the industry is more relying on outside funds as
compared to internal sources of capital, in its capital structure. From the long-term lenders
point of view this ratio is not satisfactory.

PROPRIETORY RATIO:
It is also called shareholders equity to total equity ratio or net worth to total assets
ratio or equity ratio. It compares the shareholder’s funds to total assets. It is calculated by
dividing shareholder’s funds by total assets.

Proprietary Ratio = Shareholder’s Fund/ Total Assets

 It helps to determine the long-term solvency of a company. This ratio measures the
protection available to the creditors. Higher the ratio, lesser is the likelihood of insolvency in
future, as the management has to use lesser debts and vice versa. Thus, this ratio is of great
importance to the creditors.

TABLE 4.10
PROPRIETORY RATIO:

Years Shareholder's Funds Total Assets Proprietory Ratio

(Rs. In crores) (Rs. In crores)
2012-13 12899.97 167659.4 0.07
2013-14 22555.99 251388.95 0.08
2014-15 24663.26 344658.11 0.07
2015-16 46820.21 399795.07 0.12
2016-17 49883.02 379300.96 0.13

CHART 4.10
PROPRIETORY RATIO:
 0.14 0.13
0.12
0.12

0.1
0.08
0.08 0.07 0.07

0.06

0.04

0.02

0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:

Above table exhibits the proprietary ratio of the industry for last five years. It was 7%
in2012-13, after that was 8% in year 2013-14. Similarly it was once again reduced to 7 % in
the year 2014-15. After 2007 it registered increase and was 12% and 13% in the year 2015-16
and 2016-17 respectively. Hence it leads to the conclusion owners have less than 13% stake
in the total assets of the industry. It is not a good sign as far the long term solvency is
concerned.

FIXED ASSETS TURNOVER RATIO:

It is also called as Sales to Fixed Assets Ratio. It measures the efficient use of fixed
assets. This ratio is a measure of efficient use of fixed assets. It is calculated as:
Fixed Assets Turnover Ratio = Cost of goods sold or Sales/Net Fixed Assets
 It measures the efficiency and profit earning capacity of the business. Higher the ratio,
greater is the intensive utilization of fixed assets and a lower ratio shows under utilization of
the fixed assets. This ratio has a special importance for manufacturing concerns where
investment in fixed assets is very high and the profitability is significantly dependent on the
utilization of these assets.

TABLE 4.11
FIXED ASSETS TURNOVER RATIO:

Year Sales Net Fixed Assets Fixed Assets

(Rs. In crores) (Rs. In crores) Turnover Ratio
2012-13 9409.9 4038.04 2.33
2013-14 13784.49 3980.72 3.46
2014-15 22994.29 3923.42 5.86
2015-16 30788.34 4108.89 7.49
2016-17 31092.55 3801.62 8.17

CHART 4.11
FIXED ASSETS TURNOVER RATIO:
 9 8.17
7.49
8
7
5.86
6
5
3.46
4
3 2.33

2
1
0
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:
Here the fixed assets employed in the business shows a decreasing trend except in the
year 2016-17 where fixed assets have again increased. This may be due to increase in rate of
depreciation in subsequent years. Nevertheless, the fixed assets turnover ratio has been
consistently increasing. It indicates that fixed assets have been effectively used in the
business without much additional investment in the period of study and also the capital is not
blocked in fixed assets.

CREDIT-DEPOSIT RATIO:
This ratio is very important to assess the credit performance of the industry. The ratio
shows the relationship between the amounts of deposit generated by the industry has well as
their deployment towards disbursement of loan and advances. Higher credit deposit ratio
shows overall good efficiency and performance of any industry institution.
 Credits
Credit Deposit Ratio   100
Deposits ss

Credit means disbursement of advances, Deposit mean sum of fixed deposit, saving
deposit and current deposit.

TABLE 4.12
CREDIT-DEPOSIT RATIO:

Year Advances Deposits Credit Deposit Ratio (in%)

(Rs. In crores) (Rs. In crores)
2012-13 91405.15 99818.78 91
2013-14 146163.11 165083.17 88
2014-15 195865.6 230510.19 84
2015-16 225616.08 244431.05 92
2016-17 218310.85 218347.82 99

CHART 4.12
CREDIT-DEPOSIT RATIO:
 105

100 99

95
92
91
90 88

85 84

80

75
2012-13 2013-14 2014-15 2015-16 2016-17

INTERPRETATION:

Above table exhibits credit deposit ratio of the industry during last 5 years. In the year
2005 ratio was 91% and it declined to 88% and 84%in the year 2014-15 and 2015-16
respectively. In the year 2015-16 and 2016-17 ratio was increased to 92% and 99%
respectively. It leads to conclusion that credit performance of the industry is very good.

CASH FLOW COMPARATIVE OF INDUSTRY

 2012-2013 2013-14 2014-15 2015-16 2016-17
Profit before tax 2,527.20 3,096.61 3,648.04 5,056.10 5,116.97
Net cash flow-
9,131.72 4,652.93 23,061.95 -11,631.15 -14,188.149
operating activity
Net cash used in
-3,445.24 -7,893.98 -18,362.67 -17,561.11 3,857.88
investing activity
Net cash used in fin.
-1,227.13 7,350.90 15,414.58 29,964.82 1,625.36
activity
Net inc/dec in cash and
4,459.34 4,110.25 20,081.10 683.55 -8,074.57
equivalent
Cash and equivalent
8,470.63 12,929.97 17,040.22 37,357.58 38,041.13
begin of year
Cash and equivalent
12,929.97 17,040.22 37,121.32 38,041.13 29,966.56
end of year

CHAPTER V

FINDINGS
 The capital of industry increased by 14% in 2013-2014, 0.8% in 2014-2015, 17% in
2016-2017,and .04 % in 2016-2017.This shows that there is fluctuation in the rate of
increase in the capital. In 2013-2014 and 2015-2016 the rate of increase in capital is
more than that of 2015-2016 and 2016-2017.
 There is a huge fluctuation in the rate of increase in reserves and surplus also. This
shows that industry is effectively utilizing its reserves and surplus.
 In 2013-2014 deposits increase by 65%, in 2014-2015 it increased by 40% and an
increase of 6% in 2015-2016 in 2016-2017 deposits fall by 11% .this shows that the
industry has replayed its deposits in this year.

 The borrowings are also showing a fluctuating rate of increase in 2016-2017the

borrowings have increased at a very low rate. This shows that industry has repaid a
large amount of borrowings in this year and thereby reducing the dependence on
outside debt.
 The investments are also increasing but with lower rates compared to the preceding
years
 Similarly advances rose by 60% in 2014-2015 , an increase of 34% in 2015-2016
,15% increase in 2015-2016 and finally decreased by 3.25% in 2016-2017

 Three has been a consistent decline in the fixed assets over years. in 2014-2015and
2015-2016 it decreased by 1.4 % ,increased by 5% in 2015-2016 and again decreasing
by 7.5% in 2016-2017 this is mainly due to increase in the rate of depreciation in the
subsequent years.
 A huge fluctuation is revealed from current assets. it increased by 37% in 2013-2014
,rate of increase rose to 80% in 2014-2015and then the it increased at a much lower
rate i.e at 10%.this shows that the industry is effectively utilizing its working capital.
there is a fall in current assets in 2016-2017 by 8 %.this is mainly due to the
repayment of deposits in the years 2016-2017.

 The net profit shows a fluctuating trend i.e it increased by 27% in 2013-2014 ,22.4%
increase in 2014-2015 ,and increased by 34% in 2015-2016 and finally if falls by
10% in 2016-2017 .this may be due to decline in operating income and increased tax
liability in the year 2016-2017.
  The interest expenses from the period 2013-2017 showed an increasing trend but
decreased in 2016-2017 due to repayment of borrowings.
 There is a continuous increase in the deposits till the year ending 2015-2016 followed
by a downfall in the year ending 2016-2017 due to repayment of deposits in this year.
 Similarly advances also shows as increasing trend till the year ending 2015-2016
followed by a slight downfall in the year ending 2016-2017.
 There has been a substantial increase in net profit till the year ending 2012.In four
years it has been more than double. The overall performance of the industry is
satisfactory.

CONCLUSION
 On the basis of various techniques applied for the financial analysis of industry we
can arrive at a conclusion that the financial position and overall performance of the
industry is satisfactory. Though the income of the industry has increased over the
period but not in the same pace as of expenses. But the industry has succeeded in
maintaining a reasonable profitability position.

 The industry has succeeded in increasing its share capital also which has increased
around 50% in the last 5 years. Individuals are the major shareholders. The major
achievement of the industry has been a tremendous increase in its deposits, which has
always been its main objective. Fixed and current deposits have also shown an
increasing trend.

 Equity shareholders are also enjoying an increasing trend in the return on their capital.
Though current assets and liabilities (current liquidity) of the industry is not so
satisfactory but industry has succeeded in maintaining a stable solvency position over
the years. As far as the ratio of external and internal equity is concerned, it is clear
that industry has been using more amount of external equity in the form of loans and
borrowings than owner’s equity. Industry’s investments are also showing an
increasing trend. Due to increase in advances, the interest received by the industry
from such advances is proving to be the major source of income for the industry

SUGGESTIONS
 Although the short term liquidity position is quite satisfactory as per revealed by
liquid ratio but the current ratio is below the ideal ratio of 2:1.So the industry should
make efforts to increase its current assets to maintain a safety margin and to maintain
a better liquidity position.
 The profitability of the industry for the period under study is not satisfactory. Profits
are increasing but not with same pace as of the expenditure due to higher reliance on
debt capital in the form of borrowings and loans for financing capital structure.
 So in order to improve profitability, the industry should reduce its dependence on
external equities for meeting capital requirements. Consequently, the interest
expenses will decline and profits will increase which is good for the industry.
Similarly non productive expenses should be curtailed to improve profitability.
 Higher trend of credit deposit ratio reveals that the industry has performed
satisfactorily as regard to granting loans and advances to generate income. It suggests
that the credit performance of industry is good and it is performing its business well
by fulfilling the major objective of granting credit and accepting deposit. So in order
to have more creditability in the market the industry should maintain its credit deposit
ratio.
 Though the industry has been successful in increasing it’s deposits but to further
improve upon such situation it can introduce some new and attractive schemes for
public. Such schemes can be in the form of higher rate of interest and shorter maturity
period for FD’s etc.
 Industry should try to finance more and more projects. Financing will help it to earn
higher amount of profits.

 The industry is having a greater reliance on debt capital. The increasing reliance on
external equities may prove hazardous in the long run. So in order to remedy this
situation industry should increase its focus on internal equities and other sources of
internal financing.
 Industry can also think for improving its day-to -day service to its clients. Such
service can be improved by providing prompt service and showing an attitude of co-
operation to its clients. It will help to give a kind of confidence to the public and build
a better public image.
 To achieve the objective of rural development it should open more and more branches
in different rural areas of the country. It will facilitate in providing help to rural poor
 farmers and other living below the poverty line. Industry can appoint commission
agents for different area who can encourage general public to invest in the capital of
the industry and make more deposits in industry.
 The industry should simplify the procedure of advances for quick
disbursement.
 To achieve organizational success a proper independent working atmosphere
should be developed to achieve desired objective more effectively.
 Last but not least, industry should adopt branch automation experiment to
control the operational cost

BIBILOGRAPHY
BOOKS REFERRED:
 Accountancy. R.K. Mittal,A.K.Jain. Financial Management- Theory and Practice.
Shashi.K.Gupta , R.K. Sharma.
 Essentials of Corporate Finance 2nd edition ,Irwin /McGraw-Hill.Ross, S.A.,R.W.
Westerfield and B.D. Jordan.
 Basic Financial Management ,8th edition ,Prentice -Hall,Inc. Scott, D.F., J.D Martin,
J.W. Petty and A.Keown.

ANNEXURE

BALANCE SHEET OF ICICI PRUNDENTIAL IN TRICHY

(Rs. In crores)
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
Capital and
liabilities:
Total share 1086.75 1239.83 1249.34 1462.68 1463.29
capital
Equity share 736.75 889.83 899.34 1112.68 1113.29
capital
Share application 0.02 0.00 0.00 0.00 0.00
money
Preference share 350.00 350.00 350.00 350.00 350.00
capital
Reserves 11813.20 21316.16 23413.92 45357.53 48419.73
Revaluation 0.00 0.00 0.00 0.00 0.00
reserves
Net worth 12899.97 22555.99 24663.26 46820.21 49883.02
Deposits 99818.78 165083.17 230510.19 244431.05 218347.82
Borrowings 33544.50 38521.91 51256.03 65648.43 67323.69
Total debt 146263.25 226161.17 306429.48 356899.69 335554.53
Other liabilities 21396.17 25227.88 38228.64 42895.39 43746.43
and provisions
Total liabilities 167659.42 251388.95 344658.12 399795.08 379300.96

Assets:
Cash and 6344.90 8934.37 18706.88 29377.53 17536.33
balances with rbi
Balances with 6585.07 8105.85 18414.45 8663.60 12430.23
industry’s
,money at call
Advances 91405.15 146163.11 195865.60 225616.08 218310.85
Investments 50487.35 71547.39 91257.84 111454.34 103058.31
Gross block 5525.65 5968.57 6298.56 7036.00 7443.71
Accumulated 1487.61 1987.85 2375.14 2927.11 3642.09
depreciation
Net fixed assets 4038.04 3980.72 3923.42 4108.89 3801.62
Capital work in 96.30 147.94 189.66 0.00 0.00
progress
Other assets 8702.59 12509.57 16300.26 20574.63 24163.62
Total assets 167659.40 251388.95 344658.11 399795.07 379300.96

Contingent 97507.79 119895.78 177054.18 371737.36 803991.92

liabilities
Bills for 9803.67 15025.21 22717.23 29377.55 36678.71
collection
Book value(Rs.) 170.35 249.55 270.37 417.64 445.17
EPS 27.22 28.55 34.59 37.37 33.78
No. of equity 736716094 889823901 899266672 1112687495 1113250642
shares
 PROFIT AND LOSS ACCOUNT OF ICICI PRUNDENTIAL IN TRICHY.

(Amount In Cores)

2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

Income:
Interest earned 9409.90 13784.49 22994.29 30788.34 31092.55
Other income 3416.14 4983.14 5929.17 8810.77 7603.72
Total income 12826.04 18767.63 28923.46 39599.11 38696.27
Expenditure:
Interest expended 6570.89 9597.45 16358.50 23484.24 22725.93
Operating 3299.15 4479.51 6690.56 8154.18 7045.11
expenses
Total expenses 9870.04 14076.96 23049.06 31638.42 29771.04
Operating profit 2956 4690.67 5874.40 7960.69 8925.23
Other provision 428.80 1594.07 2226.36 2904.59 3808.26
and contingencies
Provision for tax 522 556.53 537.82 898.37 1358.84
Net profit 2005.20 2540.07 3110.22 4157.73 3758.13
Extraordinary 0.00 0.00 0.00 0.00 (0.58)
items
Profit b/f 53.09 188.22 293.44 998.27 2436.32

Total 2058.29 2728.29 3403.66 5156.00 6193.87

Preference 0.00 0.00 0.00 0.00 0.00
dividend
Equity dividend 632.96 759.33 901.17 1227.70 1224.58
Corporate 90.10 106.50 153.10 149.67 151.21
dividend tax
Pershare data
Eps(rs.) 27.22 28.55 34.59 37.37 33.78
Equity dividend 85.00 85.00 100.00 110.00 110.00
(%)
Book value(rs) 170.35 249.55 270.37 417.64 445.17
Appropriations
Transfer to 547.00 248.69 1351.12 1342.31 2008.42
statutory reserve
Transfer to other 600.01 1320.34 0.00 0.01 0.01
reserve
Proposed 723.06 865.83 1054.27 1377.37 1375.79
dividend/transfer
to govt
Balance c/f to 188.22 293.44 998.27 2436.32 2809.65
balance sheet
Total 2058.29 2728.30 3403.66 5156.01 6193.87