INTRODUCTION

PART – A

INTRODUCTION TO FINANCE

Finance is rightly been termed as “master key” providing access to all sources required

for running business activities. Finance is the management of monetary affairs of a company.

DEFINITION OF FINANCE

Ray G.Jones and Dean Dudly observes that the word ‘finance’ comes from a Latin word

‘Finis’. In simple words ‘Finance’ is ‘Economics and Accounting’, economics is proper

utilization of scarce resources and accounting is keeping a record of things.

Keenth Midgely and Ronold Burns define “finance is the process of organizing the flow

of funds so that a business can carry its objectives in the most efficient manner and meet its

obligations as they fall due”.

SCOPE OF FINANCE

The scope of finance function is as wide as the periphery of finance. It concentrates primarily on

money management and different auxiliaries, which are incidental to it. For effective money

management, the different resources of business enterprises must be mobilized.

The finance penetrates all the activities irrespective of whether they relate to product, pricing,

expansion, acquisition, re-organization and in fact anything, which needs finance.

FUNCTIONS OF FINANCEFinance function is the task of providing funds required by an enterprise on the terms most

favorable to it in the light of objectives of business.

There are three finance functions:

Investment decision takes to selection of both long term and short term asset in which funds will

be invested by a firm. Financing decision is concerned with financing mix or capital structure.

The mix of debt- equity and debt is the main issue in financing to share holders and also financial

risk. Dividend decision has a strong influence on the marked price of the share therefore; the

dividend policy is to be determined in terms of its impact on shareholders’ value.

FINANCIAL MANAGEMENTFinance is the life blood of a business. Financial Management refers to the process of procuring

and judicious use of financial resources with a view to maximizing the value of the firm thereby

the value of the owners i.e., equity share holders in a company. Financial management provides

the best guide for the future resource allocation by firm and provides relatively uniform yardstick

for judging most of the operations and projects.

The importance of financial management has arisen because of the fact that present day business

activities are predominantly carried on through company or corporate form of organization. The

advent of corporate enterprises has resulted into:-

The increase in size and influence of the business enterprises

Wide distribution of corporate ownership and

Separation of ownership and management

The above three factors have further increased the importance of financial management.

Financial management helps the firm in optimizing the output from

The given input of funds.

It helps in monitoring the effective employment of funds in both

Fixed and current assets.

It helps in profit planning, capital budgeting etc.,

It is necessary for non-profit organizations to control cost and to

use funds at their disposal in the most useful manner.

THE OBJECTIVES OF FINANCIAL MANAGEMENT ARE:-

Profit Maximization

Profit helps in measuring the economic performances of firms. It makes allocation of resource

to profitable and desirable areas. On these profits maximization serves as criteria for financial

decisions.

Wealth Maximization

Wealth maximization is an important objective of an enterprise. Financial theory asserts that

wealth maximization is the single substitute for stock holder’s utility. When the firm maximizes

the stock holders’ wealth, the individual stockholder can use this wealth to maximize his

individual utility.

FINANCIAL STATEMENT ANALYSIS

Financial statement analysis is a process of evaluating the relationship between components

of the financial statements to obtain a better understanding of a firm’s position and performance.

John.N.Myer - “the financial statements provide a summary of the accounts of a business

enterprise, the balance sheet reflecting the assets, liabilities and capital as on a certain date the

income statement showing the results of operations during certain period”.

Financial statement analysis is a process of evaluating the relationship between components of

the financial statements to obtain a better understanding of a firm’s position and performance.

THE OBJECTIVES OF FINANCIAL STATEMENT ANALYSIS ARE:-

To determine the profitability or earning capacity of the firm.

To determine the progress of the concern.

To measure the financial performance of a concern.

To facilitate decision making system and policy formation.

SIGNIFICANCE OF FINANCIAL STATEMENT ANALYSIS

Financial statement provides a summarized view of operations of a firm. The significance of

financial statement analysis is as follows:

It helps as a screening tool in the selection of investment.

It can be used as forecasting tool for future profitability and financial soundness of the

business.

It helps the management in identifying the factors responsible for creating managerial,

operating and other problems.

It is an important tool for evaluation of the performance of both the management and

organization.

USES OF FINANCIAL STATEMENT ANALYSIS

The uses financial statement analyses are as follows:-

Insiders – consist of management personals, owners, employers and stockholders who are

basically interested in the overall performance of the firm to know the returns on their

investments, their performance, to evaluate themselves etc.

Outsiders – includes persons like creditors, debenture holders, shareholders, investors and

government.

Steps involved in financial statement analysis:-

There are three steps involved in the analysis of financial statements.

These are:-

I. Selection

II. Classification and

III. Interpretation

The first step involves selection of information (data) relevant to the purpose of analysis of

financial statements. The second step involved is the methodical classification of the data and the

third step includes drawing of interference and conclusions.

The following procedure is adopted for the analysis and interpretation of Financial Statements:-

1) The analyst should acquaint himself with the principles and postulate 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.

2) The extent of analysis should be determined so that the splurge of work may be divided.

If the aim is to find out the earning capacity of the enterprise then analysis of income

statement will be undertaken. On the other hand, if financial position is to be studied then

balance sheet analysis will be necessary.

3) The financial data given in the statements should be re-organized and re-arranged. It will

involve the grouping of similar data under same heads, breaking down of individual

components of statements according to nature.

4) A relationship is established among financial statements with the help of tools and

techniques of analysis such as ratios, trends, common size, funds flow etc.

5) The information is interpreted in a simple and understandable way. The significance and

utility of financial data is explained for helping decision-taking.

6) The conclusions drawn from interpretation are presented to the management in the form

of reports.

TYPES OF FINANCIAL ANALYSIS

External analysis:-

The analysis is done by outsiders who do not have access to the detailed internal

accounting records of the business firm. These outsiders include investors, potential

investors, creditors, potential creditors, government agencies, credit agencies and the

general public. For financial analysis, these external parties to the firm depend almost

entirely on the published financial statements.

Internal analysis:-

The analysis conducted by persons who have access to the internal accounting records of

a business firm is known as internal analysis. Such an analysis can, therefore, be

performed by executives and employees of the organization as well as government

agencies which have statutory powers vested in them.

Horizontal analysis:-

Horizontal analysis refers to the comparison of financial data of a company for several

years. The figures for this type of analysis are presented horizontally over a number of

columns. The figures of the various years are compared with standard or base year.

Comparative statements and percentages are two tools employed in horizontal analysis.

Vertical analysis:-

Vertical analysis refers to the study of relationship of the various items in the financial

statements of one accounting period. In this type of analysis the figures from financial

statement of a year are compared with a base selected from the same year’s statement.

Common-size financial statements and financial ratios are the two tools employed in

vertical analysis.

TECHNIQUES OF FINANCIAL STATEMENT ANALYSIS

A number of tools are available for analyzing the financial statements. The important tools are

as follows:-

Comparative Financial Statement Analysis

The comparative financial statements are statements of the financial position at different

periods of time. The elements of financial position are shown in a comparative form so as

to given an idea of financial position at two or more periods. The comparative statement

may show absolute figures, changes in absolute figures absolute data in terms of

percentage and increase or decrease in terms of percentages. The two comparative

statements are balance sheet and income statement.

Trend Analysis

The financial statements may be analyzed by computing trends of series of information.

This method determines the direction upwards or downwards and involves the

computation of the percentage relationship that each statement item bears to the same

item in base year. The information for a number of years is taken up and one year,

generally the first year, is taken as a base year.

Common-size statement

The common-size statements, balance sheet and income statement are shown in analytical

percentages. The figures are shown as percentages of total assets, total liabilities and total

sales. These statements are also known as component percentages or 100 percent

statements because every individual item is stated as a percentage of the total 100.

Ratio Analysis

Ratio is a simple arithmetic expression of the relationship of one number to another.

Ratio is an expression of the quantitative relationship between two numbers. It is a

technique of analysis and interpretation of financial statements. It helps in making

decisions regarding the financial strengths and weaknesses of firm.

Fund flow Analysis

The term ‘flow’ means movement and includes both ‘inflow’ and ‘outflow’. The term

‘flow of fund’ means transfer of economic values from one asset of equity to another.

Fund flow statement is a statement which shows the movement of funds and reports the

financial operations of the business. It is statement showing the sources and application

of funds for a period of time.

Cash flow Analysis

A cash flow statement is a statement that summarizes sources of cash (cash inflow) and

uses of cash (cash outflow) during a particular period of time a month or a year. Cash

includes cash on hand and demand deposits with banks. Cash equivalent includes short

term highly liquid investments that are readily convertible into known amounts of cash

and which are subject to an insignificant risk of changes in value.

LIMITATION OF FINANCIAL STATEMENT ANALYSIS

Financial analysis is a powerful mechanism of determining financial strengths and

weaknesses of a firm. But, the analysis is based on the information available in the financial

statements. Thus, the financial analysis suffers from serious inherent limitations of financial

statements. Some of the limitations of financial analysis are:-

It is only a study of interim reports

Financial analysis is based upon only monetary information and non-monetary factors are

ignored

It does not consider changes in price levels

As the financial statements are prepared on the basis of a going concern, it does not give

exact position. Thus accounting concepts and conventions cause a serious limitation of

financial analysis.

Changes in accounting procedure by a firm may often lead to misleading financial

analysis.

The analyst has to make interpretation and draw his own conclusions. Different people

may interpret the same analysis in different ways.

PART – BOVERVIEW OF RATIO ANALYSIS

OVERVIEW OF RATIO ANALYSIS

Ratio analysis is a very powerful analytical tool useful for measuring performance of an

organization. The ratio analysis concentrates on the inter-relationship among the figures appearing in the

financial statements. The ratio analysis helps the management to analyze the past performance of the firm

and to make further projections. Ratio analysis allow interested parties like shareholders, investors,

creditors, Government and analysts to make an evaluation of certain aspects of firm’s performance.

Ratio analysis is a process of comparison of one figure against another, which makes a ratio and the

appraisal of the ratios to make proper analysis about the strengths and weaknesses of the firm’s

operations. The calculation of ratios is a relatively easy and simple task but the proper analysis and

interpretation of the ratios can be made only by the skilled analyst. Ratio analysis is extremely helpful in

providing valuable insight into a company’s financial picture. Ratios normally pinpoint a business’

strengths and weakness in two ways:

Ratios provide an easy way to compare present performance with the past.

Ratios depict the areas in which a particular business is competitively advantaged or

disadvantaged through comparing ratios to those of other businesses of the same size within the

same industry.

INTERPRETATION OF THE RATIOSThe interpretation of ratios is an important factor. Interpretation needs skill, intelligence and

foresightedness. The interpretation of the ratios can be made in the following ways:-

1) Single Absolute Ratio

Generally speaking one cannot draw any meaningful conclusion when a single ratio is

considered in isolation. But single ratios may be studied in relation to certain rules of thumb which

are based upon well proven conventions as for example 2:1 is considered to be a good ratio for

current assets to current liabilities.

2) Group ratios

Ratio may be interpreted by calculating a group of related ratios. As single ratio supported by

other related additional ratios becomes more understandable and meaningful. For example, the

ratio of current asses to current liabilities may be supported by the ratio of liquid assets to liquid

liabilities to draw more dependable conclusions.

3) Historical comparison

One of the easiest and most popular ways for evaluating the performance of the firm is to

compare its present ratios with the past ratios called comparison overtime. When financial ratios

are compared over a period of time, it gives an indication of the direction of change and reflects

whether the firm’s performance and financial position has improved, deteriorated or remained

constant over a period of time.

4) Projected ratio

Ratios can also be calculated for future standards based upon the projected financial statements.

These future ratios may be taken as standard for comparison and the ratios calculated on actual

financial statements can be compared with the standard ratios to find out variances, if any. Such

variances help in interpreting and taking corrective action for improvement in future.

5) Inter-firm comparison

Ratios of one firm can also be compared with the ratios of some other selected firms in the same

industry at the same point of time. This kind of comparison helps in evaluating relative financial

position and performance of the firm.

STEPS IN RATIO ANALYSIS

The following are the steps in ratio analysis

Step 1:- Collecting information from the financial statements and then calculating different Ratios

accordingly.

Step 2:- Comparison of computed ratios with post ratios of the same organization.

Step 3:- Interpretation, drawing interferences and reporting.

CLASSIFICATION OF RATIO

From the view point of financial management ratios are classified into four groups. They are as follows

1) Liquidity ratios

a) current ratio

b) liquidity ratio

c) absolute ratio

2) Capital structure ratios

a) debt to equity ratio

b) proprietary ratio

c) capital earning ratio

3) Profitability ratios

a) Gross profit ratio

b) Net profit ratio

c) Operating profit ratio

d) Return on capital ratio

4) Turnover ratios

a) debtors turnover ratio

b) creditors turnover ratio

c) total assets turnover ratio

d) fixed assets turnover ratio

e) working capital turnover ratio

f) current assets turnover ratio

LIQUIDITY RATIOS

Liquidity means ability of a firm to meet its current obligations. Therefore liquidity ratios try to

establish a relationship between current liabilities, which are the obligations and current assets, which

provide the sources from which these obligations are met.

If it is decided to study the liquidity position of the concerns, in order to highlight the relative strength of

the concerns in meeting their current obligations to maintain sound liquidity and also to pinpoint the

difficulties if any in it, then liquidity ratios are calculated. These ratios are used to measure the firm’s

ability to meet short terms obligations. From these ratios, much insight can be obtained into the present

cash solvency of the firm and the firm’s ability to remain solvent in the event of adversity.

The important liquidity ratios are:

CURRENT RATIO

This is the most widely used ratio. It is the ratio of current assets to current liabilities. It shows a

firm’s ability to cover its current liabilities with its current assets. It is expressed as follows:

Current ratio= current assets/current liabilities

Generally 2:1 is considered ideal for a concern i.e. current asset should be twice of the current

liabilities. If the current assets are two times of the current liabilities, there will be no adverse

effect on business operations when the payment of current liabilities is made. If the ratio is less

than 2, difficulty may be experienced in the payment of current liabilities and day-to-day

operations of the business may suffer. If the ratio is higher than 2, it is very comfortable for the

creditors, but, for the concern, it is indicator of idle funds.

For the calculation of this ratio current assets will include cash, bank balance, short term

investment, bills receivables, trade debtors, short term loans and advances, inventories and

prepaid payments and current liabilities will include bank overdraft, bills payable, trade creditors,

provision for taxation and proposed dividends etc.

LIQUID RATIO

This is the ratio of liquid assets to liquid liabilities. It shows a firm’s ability to meet current

liabilities with its most liquid (quick) assets, 1:1 ratio is considered ideal ratio for concern

because it is wise to keep the liquid assets at least equal to the liquid liabilities at all times. Liquid

assets are those assets which are readily converted into cash and will include cash balances, bills

receivables and sundry debtors and short term investments. Liquid liabilities include all items of

current liabilities except bank overdrafts. This ratio is the ‘acid test’ of a concern’s financial

soundness. It is calculated as under:

Liquid ratio= liquid assets/ current (or liquid) liabilities

ABSOLUTE RATIO

Though receivables are generally more liquid than inventories, there may be debts having doubts

regarding their real stability in time. So, to get idea about the absolute liquidity of the concern,

both receivables and inventories are excluded from current assets and only absolute liquid assets

such as cash in hand, cash at bank are readily realizable securities are taken into consideration.

Absolute liquidity Ratio is calculated as follows:

(Cash in hand at bank + short term marketable securities)

Current Liabilities

The desirable norm for this ratio is 1:2 i.e. Re.1 worth of absolute liquid assets is

Sufficient for Rs.2 worth of current liabilities.

CAPITAL STRUCTURE RATIOS

The ratios are used to enhance the long term solvency of the business concern that is the ability to

repay the principal amount when due and regular payment of interest.

DEBT TO EQUITY RATIO

It measures the extent of equity covering the debt. This ratio is calculated to measure the relative

proportions of outsider’s funds and shareholder’s funds invested in the company. This ratio is

determined to ascertain the soundness of long ratio. It is calculated as follows:

Debt Equity Ratio = Long Term Debt/Shareholder’s Funds

Shareholder’s funds consists of preference share capital, equity share capital, profit and loss

account (Credit Balance), capital reserves, revenue reserves and reserves representing marked

surplus, like reserves for contingencies, sinking funds for renewal of fixed assets or redemption

of debentures etc. less fictitious assets. Whether a given debt to equity ratio shows a favorable or

unfavorable financial position of the concern depends on the industry and the pattern of earning.

A low ratio is generally viewed as favorable from long term creditor’s point of view, because a

large margin of protection provides safety for the creditors.

PROPRIETARY RATIO

A variant of debt or equity ratio is the proprietary ratio which shows the relationship

between shareholder’s funds and total tangible assets. This ratio is worked out as follows:

Shareholders funds / Total tangible Assets

This ratio should be 1:3 i.e. one –third of the minus current liabilities should be acquired by

shareholder’s funds and the other two-thirds of the assets should be financed by Outsider’s funds. It

focuses the attention on the general financial strength of the business Enterprise.

CAPITAL GEARING RATIOSThis ratio establishes relationship between the fixed interest bearing securities and equities of a

company. It is calculated as follows:

Fixed Interest bearing Securities / Equity Shareholders Fund

Fixed Interest bearing carry with them the fixed rate of dividend or interest and include

preference share capital and debentures. A company is said to be highly geared if the major share

of the total capital is in the form of fixed interest-bearing securities or this ratio is more than one.

If this ratio is less than one, it is said to be low geared. If it is exactly one, it is evenly geared.

This ratio must be carefully planned as it affects the company’s capacity to maintain a uniform

dividend policy during difficult trading periods that may occur.

PROFITABILITY RATIOSIt is calculated to measure the efficiency of a business and profitability of a business in relation to

sales and investment.

Profitability is the overall measure of the companies with regard to efficient and effective

utilization of resources at their command. It indicates in a nutshell the effectiveness of the

decisions taken by the management from time to time. Profitability ratios are of utmost

importance for a concern. These ratios are calculated to enlighten the end results of business

activities, which is the sole criterion of the overall efficiency of a business concern. The

following are the important profitability ratios.

GROSS PROFIT RATIO

This ratio interprets the margin on trading and is calculated as under

Gross Profit Ratio = Gross Profit / Net Sales * 100

Higher the ratio, the better it is. A low ratio indicates unfavorable trends in the form of reduction

in selling prices not accompanied by proportionate decrease in cost of goods or increase in cost of

production. The gross profit should be adequate to cover fixed expenses, dividends and building

up of reserves. Where this occurs, management should keep a record of mark-ups and mark

downs. So that when the trading statement is completed according to actual figures, the gross

profit can be tested for regularity. It is important that a business keeps up its margin of gross

profit; otherwise it may not cover its operating expenses and thus provide an adequate return to

proprietors. In many industries there is more or less recognized gross profit and experience will

indicate whether the ratio of the enterprise being analyzed is satisfactory or not.

NET PROFIT RATIO

This ratio explains per rupee profit generating capacity of sales. If the cost of sales is lower, then

the net profit will be higher and then we divide it with the net sales, the result is the sales

efficiency. If lower is the net profit per rupee of sales, lower will be the sales efficiency. The

concerns must aim at achieving greater sales efficiency for maximizing the return on investment.

This ratio is very useful to the proprietors and prospective investors because it reveals the overall

profitability of the concern. This is the ratio of net profit after taxes to net sales and is calculated

as follows:

Net Profit Ratio = Net Profit after tax / Net Sales * 100

The ratio differs from the operating profit ratio in as much as it is calculated after deducing non-

operating expenses, such as loss on sale of fixed assets etc from operating profit and adding non-

operating income like interest or dividend on investments, profits on sale of investments or fixed

assets etc., to such profits. Higher the ratio, the better it is because it gives idea of improved

efficiency of the concern.

OPERATING PROFIT RATIO:

This ratio establishes the relationship between operating profit and sales and is calculated as

follows:

Operating Profit Ratio = Operating Profit / Net Sales * 100

Where,

Operating Profit = Net Profit + Non Operating Expenses – Non operating Income

OR

Gross profit – Operating Expenses

RETURN ON CAPITAL RATIO

It is also called as an overall profitability ratio. This ratio is an indicator of the earning capacity of

the capital employed in the business. This ratio is calculated as follows:

Return on Capital Employed = Operating profit / Capital Employed * 100

Here,

Operating Profit = Profit before interest and tax

Capital Employed = Equity share Capital + Preference share Capital + Undistributed Profit

+ Reserves and Surplus + Long term liabilities – fictitious Assets – Non-business Assets

Alternatively – tangible Fixed and Intangible Assets = Current Assets – Current Liabilities

The ratio is considered to be the most important because it reflects the overall efficiency with

which capital is used. This ratio is a helpful tool for making capital budgeting decisions.

TURNOVER RATIOS

They are used to indicate the efficiency with which assets and resources of a firm are being

utilized. A higher turnover ratio indicates the better use of capital resource, which in turn has a

favorable affect of profitability of a firm.

These ratios are very important for a concern to judge how well facilities at the disposal of the

concern are being used to measure the effectiveness with which a concern uses its resources at its

disposal. In short, these will indicate position of assets usage. These ratios are usually calculated

on the basis of sales or cost of sales and are expressed in number of times rather than as a

percentage. Such ratios should be calculated separately for each type of asset. The greater the

ratio more will be the efficiency of asset usage. The ratio will reflect the under utilization of the

resources available at the command of the concern. The concern must always plan for efficient

use of the assets to increase the overall efficiency. The following are the important turnover ratios

usually calculated by a concern:

DEBTORS TURNOVER RATIO

This indicates the numbers of times on the average the receivable are turnover in each year. The

higher the value of ratio, the more is the efficient management of debtors. It measures the

accounts receivable (trade debtors and bill receivable) in terms of number of days of credit sales

during a particular period. It calculated as follows:

Debtors Turnover ratio = Net Credit Sales / Average Debtors

The collection period is calculated as = 365 / Debtors turnover ratio

CREDITORS TURNOVER RATIO

This ratio gives the average credit period enjoyed from the creditors and is calculated as under

Credit Purchases / Average Accounts payable (Creditors + B / P)

A high ratio indicates the creditors are not paid in time while a low ratio gives an idea that the

business is not taking full advantage or credit period allowed by the creditors. Sometimes it is

also required to calculate the average payment period (or average age of payables or debts period

enjoyed) to indicate the speed with which the payments for credit purchases are made to creditors.

It is calculated as

Average age of payables = Months (or days) in a year / Creditors Turnover Ratio

TOTAL ASSET TURNOVER RATIO

This ratio is calculated by dividing the net sales by the value of total assets (i.e. Net Sales + Total

Assets). A high ratio is an indicator of over-trading of total assets while a low ratio reveals idle

capacity. The traditional standard for the ratio is two times.

FIXED ASSET TURNOVER RATIO

This ratio measures the efficiency of the assets used. The efficient use of assets will generate

greater sales per rupee invested in all the assets of a concern. The inefficient use of the asset will

result in low sales volume compared with higher overhead charges and under utilization of the

available capacity. Hence the management must strive for using total resources at optimum level,

to achieve higher return on investment. This ratio expresses the number of times fixed assets are

being turned over in a stated period.

It is calculated as under:

Sales Net / Net Fixed Assets

WORKING CAPITAL TURNOVER RATIO

This ratio shows the number of times working capital is turned –over in a stated period. It is

calculated as follows:

Sales / Net Working Capital

The higher is the ratio, the lower is the investment in working capital and the greater are the

profits. However, a very turnover of working capital is a sign of overtrading and may put the

concern into financial difficulties. On the other hand, a low working capital turnover ratio

indicates that working capital is not efficiently utilized.

Balance Sheet of Dena Bank ------------------- in Rs. Cr. -------------------

Mar '09 Mar ‘10 Mar ‘11 Mar ‘12 Mar ‘13

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:Total Share Capital 526.30 526.30 526.30 631.47 634.88Equity Share Capital 526.30 526.30 526.30 631.47 634.88Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 23,545.84 27,117.79 30,772.26 48,401.19 57,312.82Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Net Worth 24,072.14 27,644.09 31,298.56 49,032.66 57,947.70Deposits 367,047.53 380,046.06 435,521.09 537,403.94 742,073.13Borrowings 19,184.31 30,641.24 39,703.34 51,727.41 53,713.68Total Debt 386,231.84 410,687.30 475,224.43 589,131.35 795,786.81Other Liabilities & Provisions 49,578.89 55,538.17 60,042.26 83,362.30 110,697.57

Total Liabilities 459,882.87 493,869.56 566,565.25 721,526.31 964,432.08

AssetsCash & Balances with RBI 16,810.33 21,652.70 29,076.43 51,534.62 55,546.17

Balance with Banks, Money at Call 22,511.77 22,907.30 22,892.27 15,931.72 48,857.63

Advances 202,374.45 261,641.53 337,336.49 416,768.20 542,503.20Investments 197,097.91 162,534.24 149,148.88 189,501.27 275,953.96Gross Block 6,691.09 7,424.84 8,061.92 8,988.35 10,403.06Accumulated Depreciation 4,114.67 4,751.73 5,385.01 5,849.13 6,828.65

Net Block 2,576.42 2,673.11 2,676.91 3,139.22 3,574.41Capital Work In Progress 121.27 79.82 141.95 234.26 263.44

Other Assets 18,390.71 22,380.84 25,292.31 44,417.03 37,733.27Total Assets 459,882.86 493,869.54 566,565.24 721,526.32 964,432.08

Contingent Liabilities 131,325.40 191,819.34 259,536.57 736,087.59 614,603.47Bills for collection 44,794.10 57,618.44 70,418.15 93,652.89 152,964.06Book Value (Rs) 457.39 525.25 594.69 776.48 912.73

Mar ‘09 Mar ‘10 Mar ‘11 Mar ‘12 Mar ‘13

Income

Interest Earned 32,428.00 35,794.93 39,491.03 48,950.31 63,788.43

Other Income 7,119.90 7,388.69 7,446.76 9,398.43 12,691.35

Total Income 39,547.90 43,183.62 46,937.79 58,348.74 76,479.78

Expenditure

Interest expended 18,483.38 20,159.29 23,436.82 31,929.08 42,915.29

Employee Cost 6,907.35 8,123.04 7,932.58 7,785.87 9,747.31

Selling and Admin

Expenses2,634.64 1,853.32 3,251.14 4,165.94 5,122.06

Depreciation 752.21 729.13 602.39 679.98 763.14

Miscellaneous Expenses 6,465.82 7,912.15 7,173.55 7,058.75 8,810.75

Preoperative Exp

Capitalised0.00 0.00 0.00 0.00 0.00

Operating Expenses 11,278.18 11,872.89 13,251.78 14,609.55 18,123.66

Provisions &

Contingencies5,481.84 6,744.75 5,707.88 5,080.99 6,319.60

Profit & Loss account of Dena Bank

------------------- in Rs. Cr. -------------------

Total Expenses 35,243.40 38,776.93 42,396.48 51,619.62 67,358.55

Mar ‘09 Mar ‘10 Mar ‘11 Mar ‘12 Mar ‘13

Net Profit for the Year 4,304.52 4,406.67 4,541.31 6,729.12 9,121.23

Extraordionary Items 0.00 0.00 0.00 0.00 0.00

Profit brought forward 0.34 0.34 0.34 0.34 0.34

Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 657.87 736.82 736.82 1,357.66 1,841.15

Corporate Dividend Tax 93.75 103.34 125.22 165.87 248.03

Per share data (annualised)

Earning Per Share (Rs) 81.79 83.73 86.29 106.56 143.67

Equity Dividend (%) 125.00 140.00 140.00 215.00 290.00

Book Value (Rs) 457.39 525.25 594.69 776.48 912.73

Appropriations

Transfer to Statutory

Reserves3,552.89 3,566.51 3,682.15 5,205.69 7,032.04

Transfer to Other Reserves 0.01 0.00 -2.88 -0.10 0.01

Proposed

Dividend/Transfer to Govt751.62 840.16 862.04 1,523.53 2,089.18

Balance c/f to Balance 0.34 0.34 0.34 0.34 0.34

Sheet

Total 4,304.86 4,407.01 4,541.65 6,729.46 9,121.57