Financial Analysis Report on Yes Bank

Yes Bank 2009

Objective:-

The intent of financial statements is to provide information useful in economic decision making.

In particular, the data should be useful in making investment and credit decisions. Financial

statements should provide a reliable indication of a company's financial position, operating

results, and changes in financial position. Also, statement components and categories should aid

in decisions. Financial statements may provide information in addition to that specified by

authoritative requirements and regulatory groups. In as much as management knows the most

about the business, it is encouraged to identify certain circumstances and explain their financial

effects on the enterprise. Note that the Financial Accounting Standards Board (FASB) Statement

of Financial Accounting Concepts No. 1, "Objectives of Financial Statements," provides

reporting goals

Page 1

http://www.answers.com/topic/financial-accounting-standards-board

Yes Bank 2009

Banking Sector in India:-

Banking in India originated in the last decades of the 18th century. The oldest bank in existence

in India is the State Bank of India, a government-owned bank that traces its origins back to June

1806 and that is the largest commercial bank in the country. Central banking is the responsibility

of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the

then Imperial Bank of India, relegating it to commercial banking functions. After India's

independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the

government nationalized the 14 largest commercial banks; the government nationalized the six

next largest in 1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is

with the Government of India holding a stake), 31 private banks (these do not have government

stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They

have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by

ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the

banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively

History:-

Page 2

http://en.wikipedia.org/wiki/Automated_teller_machine

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Reserve_Bank_of_India

http://en.wikipedia.org/wiki/State_Bank_of_India

Yes Bank 2009

Yes Bank India, founded under the initiative of Rana Kapoor and Ashok Kapur, is known for

comprehensive banking and providing financial solutions to its customers. The main mission of

the Yes Bank in India is to establish a hi-tech driven private Indian bank catering to the needs of

the emerging India. The founders got the financial assistance from the Rabobank Nederland, the

world's only AAA rated private bank, and three respected global institutional private equity

investors, CVC Citigroup, AIF Capital and ChrysCapital. At present, Yes Bank India has forty

fully operational branches.

Activities:

The main feature that differentiates Yes Bank India in the banking industry is their use of

knowledge bankers who are industry experts in various sectors of Indian economy thereby

helping their valued customers with in-depth knowledge of these sectors. In general the products

and services offered by the Yes Bank are:

Corporate and Institutional Banking

Financial Markets

Investment Banking

Business and Transactional Banking

Retail Banking

Private Banking

The Yes Bank offers a package of value added services, known as the Yes Touch. This includes

International Debit Cards, 24 Hour ATM Access, Internet Banking, Mobile Banking, Payment -

Online Brokerage and Online Travel Booking.

Page 3

Yes Bank 2009

Company Profile:-

The Profile page of the company captures the details in brief on Company's Address, Top

management, Listings, Latest financial results in detail.

Registered & Corporate Office:-

Nehru Centre, 9th Floor,

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

Mumbai, Maharashtra - 400018

Tel: 022-66699000

Fax: 022-24900314,

Email: [email protected]

Website: www.yesbank.in

Registrar & Share Transfer Agent:-

Karvy Computershare Private Ltd. Plot No.17-24, Vittalrao Nagar,

Madhapur, Hyderabad – 500081

Andhra Pradesh.

Tel: 23420815 – 820

Page 4

http://www.yesbank.in/

mailto:[email protected]

Yes Bank 2009

Board Of Directors:-

S.No Name Designation

1 Mr. Berend Du Ron Alternate Director

2 Mr. S L Kapur Independent Director

3 Mr. Arun K Mago Independent Director

4 Mr. Ajay Vohra Independent Director

5 Mr. Bharat Patel Independent Director

6 Mr. Wouter Kolff Independent Director

7 Ms. Radha Singh Independent Director

8 Mr. Rana Kapoor Managing Director & CEO

9 Mr. Sipko Schat Nominee Director

Key Officials:-

Name Designation

Rana Kapoor Managing Director & CEO

Sanjeev Kapoor Executive VP & Co. Secretary

SHARE HOLDER PATTERN:-

Page 5

Yes Bank 2009

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

Face Value 10.00 10.00 10.00

No. Of

Shares

%

Holding

No. Of

Shares

%

Holding

No. Of

Shares

%

Holding

PROMOTER'S HOLDING

Indian Promoters 93243005 31.27 91743005 30.88 96743005 32.58

Sub Total 93243005 31.27 91743005 30.88 96743005 32.58

NON PROMOTER'S HOLDING

Institutional Investors

Mutual Funds and UTI 22327048 7.49 21101975 7.10 5822843 1.96

Banks Fin. Inst. and

Insurance 3731899 1.25 3383808 1.14 2829028 0.95

FII's 141742189 47.54 136073997 45.80 148258551 49.92

Sub Total 167801136 56.28 160559780 54.05 156910422 52.84

Other Investors

Private Corporate Bodies 7484635 2.51 12096514 4.07 9622609 3.24

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

Others 1709772 0.57 3113404 1.05 1368874 0.46

Sub Total 10705061 3.59 16906944 5.69 12802520 4.31

General Public 26421148 8.86 27871201 9.38 30522983 10.28

GRAND TOTAL 298170350 100.00 297080930 100.00 296978930 100.00

Capital Structure:-

From To Class Of Authoris Issue Paid Up Paid Paid

Page 6

Yes Bank 2009

Year Year Share ed

Capital

(Rs.Cr)

d

Capit

al

(Rs.Cr

)

Shares in

(Nos)

Up

Face

Valu

e

Up

Capit

al

(Rs.Cr

)

2008 2009 Equity

Share400.00 296.98

29697893

010.00 296.98

2007 2008 Equity

Share400.00 295.79

29578975

010.00 295.79

2006 2007 Equity

Share400.00 280.00

28000000

010.00 280.00

2005 2006 Equity

Share400.00 270.00

27000000

010.00 270.00

2003 2005 Equity

Share400.00 200.00

20000000

010.00 200.00

Page 7

Yes Bank 2009

Annual Report: -

(Rs in Cr.)

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

Sales 2,003.32 1,310.82 587.60 190.18 29.98

Other income 435.02 354.53 194.57 99.74 18.17

Employee Expenses 0.00 202.41 117.47 50.12 21.27

Other Expenses 418.55 138.75 76.03 36.00 18.67

Total interest 1,492.14 974.11 416.26 104.72 11.85

Gross profit 527.65 350.08 172.41 99.08 -3.64

Provisions Made 61.74 43.60 49.30 14.64 0.12

Net depreciation 0.00 0.00 0.00 0.00 0.00

Total taxation 162.07 106.46 28.75 29.12 0.00

Extra ordinary item 0.00 0.00 0.00 0.00 0.00

Net profit / loss 303.84 200.02 94.36 55.32 -3.76

Prior year adjustment 0.00 0.00 0.00 0.00 0.00

Reserve written back 0.00 0.00 0.00 0.00 0.00

Equity capital 296.98 295.79 280.00 270.00 200.00

Equity Dividend Rate 0.00 0.00 0.00 0.00 0.00

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

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

Government Share 0.00 0.00 0.00 0.00 0.00

Capital Adequacy Ratio 16.63 13.64 13.56 16.43 18.81

Page 8

Yes Bank 2009

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

Profit & Loss Account:-

(Rs in Cr.)


Income :

Operating Income 2,423.90 1,590.84 736.75 283.81 47.39

Expenses

Financial Expenses 1,492.14 974.11 416.26 104.72 11.85

Personnel Expenses 218.02 202.41 117.47 50.12 21.27

Selling Expenses 1.48 1.67 2.68 1.77 2.48

Administrative Expenses 226.01 133.61 65.38 35.90 14.94

Expenses Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenditure 1,937.65 1,311.80 601.79 192.51 50.54

Operating Profit 486.25 279.04 134.96 91.30 -3.15

Other Recurring Income 34.54 74.53 45.44 6.14 0.78

Adjusted PBDIT 520.79 353.57 180.40 97.44 -2.37

Provisions Made 24.61 27.84 19.06 7.30 1.90

Depreciation 30.10 19.23 11.07 5.66 1.25

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Yes Bank 2009

Other Write offs 0.00 0.00 0.00 0.00 0.00

Adjusted PBT 466.08 306.50 150.27 84.48 -5.52

Tax Charges 162.07 106.46 55.91 29.12 -1.79

Adjusted PAT 304.01 200.04 94.36 55.36 -3.73

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

Other Non Cash adjustments 0.00 0.00 0.00 0.00 0.00

Reported Net Profit 303.84 200.02 94.37 55.32 -3.76

Earnings Before Appropriation 548.92 305.32 132.10 51.57 -3.76

Equity Dividend 0.00 0.00 0.00 0.00 0.00

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Dividend Tax 0.00 0.00 0.00 0.00 0.00

Retained Earnings 548.92 305.32 132.10 51.57 -3.76

Page 10

Yes Bank 2009

Balance Sheet:-


Sources of funds

Owner's fund

Equity share capital 296.98 295.79 280.00 270.00 200.00

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 1,327.24 1,023.13 507.06 302.69 17.00

Loan funds

Secured loans - - - - -

Unsecured loans 16,169.42 13,273.16 8,220.39 2,910.38 663.03

Total 17,793.64 14,592.08 9,007.45 3,483.07 880.03

Uses of funds

Fixed assets

Gross block 194.88 133.01 86.66 36.24 17.59

Less : revaluation reserve - - - - -

Less : accumulated depreciation 64.15 35.73 17.38 6.81 1.25

Net block 130.73 97.28 69.28 29.43 16.34

Capital work-in-progress 0.39 3.89 1.59 5.29 3.30

Investments 7,117.02 5,093.71 3,073.12 1,350.14 394.86

Net current assets

Current assets, loans & advances 1,326.86 729.70 376.88 155.01 49.66

Less : current liabilities & provisions 2,918.10 1,404.13 1,228.68 214.72 28.40

Total net current assets -1,591.24 -674.42 -851.80 -59.71 21.26

Miscellaneous expenses not written - - - - -

Total 5,656.90 4,520.45 2,292.20 1,325.16 435.77

Notes:

Page 11

Yes Bank 2009


Book value of unquoted investments - - - - -

Market value of quoted investments - - - - -

Contingent liabilities 43,481.94 68,874.54 52,061.58 17,524.20 6,522.22

Number of equity shares outstanding (Lacs) 2969.79 2957.90 2800.00 2700.00 2000.00

Ratios:-

Page 12

Yes Bank 2009


Per share ratios

Adjusted EPS (Rs) 10.24 6.76 3.37 2.05 -0.18

Adjusted cash EPS (Rs) 11.25 7.41 3.77 2.26 -0.12

Reported EPS (Rs) 10.23 6.76 3.37 2.05 -0.18

Reported cash EPS (Rs) 11.24 7.41 3.77 2.26 -0.12

Dividend per share - - - - -

Operating profit per share (Rs) 16.37 9.43 4.82 3.38 -0.15

Book value (excl rev res) per share (Rs) 1.33 1.18 28.11 21.21 10.85

Book value (incl rev res) per share (Rs.) 1.33 1.18 28.11 21.21 10.85

Net operating income per share (Rs) 81.62 53.78 26.31 10.51 2.37

Free reserves per share (Rs) 36.47 31.18 16.66 10.70 0.85

Profitability ratios

Operating margin (%) 20.06 17.54 18.31 32.16 -6.66

Gross profit margin (%) 21.77 22.00 23.40 30.17 -9.29

Net profit margin (%) 12.35 12.01 12.06 19.08 -7.80

Adjusted cash margin (%) 13.59 13.16 13.48 21.04 -5.17

Adjusted return on net worth (%) 18.71 15.16 11.99 9.66 -1.72

Reported return on net worth (%) 18.70 15.16 11.98 9.66 -1.73

Return on long term funds (%) 120.56 97.09 71.98 33.03 2.91

Leverage ratios

Long term debt / Equity - - - - -

Total debt/equity 9.96 10.06 10.44 5.08 3.06

Owners fund as % of total source 9.12 9.03 8.73 16.44 24.65

Fixed assets turnover ratio 12.44 11.96 8.50 7.83 2.69

Liquidity ratios

Current ratio 0.45 0.51 0.30 0.72 1.75

Current ratio (inc. st loans) 0.06 0.04 0.03 0.04 0.07

Quick ratio 5.14 7.92 5.74 12.34 30.00

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Yes Bank 2009


Inventory turnover ratio - - - - -

Payout ratios

Dividend payout ratio (net profit) - - - - -

Dividend payout ratio (cash profit) - - - - -

Earning retention ratio 100.00 100.00 100.00 100.00 -

Cash earnings retention ratio 100.00 100.00 100.00 100.00 -

Coverage ratios

Adjusted cash flow time total debt 48.40 60.54 77.96 47.70 -

Financial charges coverage ratio 1.35 1.36 1.43 1.93 0.79

Fin. charges cov.ratio (post tax) 1.22 1.23 1.25 1.58 0.78

Component ratios

Material cost component (% earnings) - - - - -

Selling cost Component 0.06 0.10 0.36 0.62 5.23

Exports as percent of total sales - - - - -

Import comp. in raw mat. Consumed - - - - -

Long term assets / total Assets 0.84 0.87 0.89 0.89 0.89

Bonus component in equity capital (%) - - - - -

Cash Flow:-

(Rs in Cr.)

Page 14

Yes Bank 2009

Mar '

09

Mar '

08 Mar ' 07

Mar '

06

Mar '

05

Profit Before Tax 465.92 306.54 143.68 84.45 -5.58

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

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

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

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

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

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

RATIOS ANALYSIS:-

Page 15

Yes Bank 2009

PROFITABILITY RATIO

A profitability ratio measures the degree of operating success of a company. The only reason

why investors are interested in a company is that they think they will earn a reasonable return in

the form of capital gain and dividends on their investments. The share holders will not be

interested in a company that does not earn sufficient margin on its sales. The failure to earn an

adequate rate of profit over a period will also drain the company’s cash and impair its liquidity.

Commonly used Profitability Ratios:-

Profit margin ratio

Asset turnover ratio

Return on asset ratio

Return on equity ratio

Earnings per share ratio

Gross Profit ratio

Net profit ratio

1. PROFIT MARGIN RATIO:

This ratio, also known as Return on sales (ROS), measures the amount of net profit earned by

each rupee of revenue. This indicates relationship between profit after tax and sales for the year.

This ratio indicates amount of net profit earned for each rupee of revenue.

Formula = Profit after Tax Sales

Profit margin ratio in 2009 = 30384 = 12.53% 2423.90

Profit margin ratio in 2008 = 20002 = 12.57 % 1590.84

Page 16

Yes Bank 2009

Profit margin ratio in 2007 = 9437 = 12.80 % 736.75

Comment:-

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

2. ASSETS TURNOVER RATIO:

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Yes Bank 2009

This ratio measure firm’s efficiency in utilizing its assets. It indicates how many times the assets

were turned over in a period and there by generated sales. If assets turnover is high, the is

managing its assets efficiently. If it is low, it means the company has more assets then it really

needs for its operation. This ratio shows the firm’s ability in generation sales from all financial

resources committed total assets.

Formula= Sales______ Average Total Assets

Assets turnover ratio in 2009 = 2423.90 = 12.43 times 194.88

Assets turnover ratio in 2008 = 1590.84 = 11.96 times 133.01

Assets turnover ratio in 2007= 736.75 = 8.5 times 86.66

Page 18

Yes Bank 2009

Comment: -

In the year 2007, Yes Bank had sales of about Rs. 8.5 per rupee of investment in

assets as compare to about Rs. 11.96 in 2008. The increase of 3.46 in sales per rupee of

investment indicates significant improvement in utilization of assets in the year 2008. The higher

this ratio the greater is the efficiency with which the fix assets being used. This ratio also shows

increase in the year 2009 from the year 2008. It shows that company has made good use of their

Funds by utilizing them into assets. This ratio suggests that the company is utilizing its fixed

assets efficiently.

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Yes Bank 2009

3. RETURN ON ASSETS /RETURN ON INVESTMENT:

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

overall performance of a company.

Formula= Profit after tax * 100 Average Total Assets

Return on assets /return on investment in 2009 = 30384 = 15.24% 19941.61

Return on assets /return on investment in 2008 = 20002 = 14.24% 14042.93

Return on assets /return on investment in 2007 = 9437 = 12.36 % 7632.99

Average Total Assets = Current year’s total assets + Previous Year’s Total Assets2

Average Total Assets In 2009 = 22900.80 + 16982.42 = 19941.61 2



Page 20

Yes Bank 2009

Comment:

This ratio shows overall performance of the company. We can see that it shows

increasing trend. The continuous increase in the ratio describes that the investments made by the

company is not going in the profitable manner for the company. It shows that the company’s

performance is decrease in the no. of years.

4. RETURN ON EQUITY:

Page 21

Yes Bank 2009

This ratio measures profitability from the stand point of the company’s share holders. It

measures the efficiency with which share holders funds are employed in order to moderate the

influence of share holders transactions such as share issue, buy back and retained earnings,

analysts generally use the average of beginning and ending amounts of the year.

Formula= Profit after TaxAverage shareholder’s equity

Return on equity in 2009 = 30384 = 37.41 812.11

Return on equity in 2008= 20002 = 30.33

659.46

Return on equity in 2007= 9437 = 23.98 393.53

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Yes Bank 2009

Comment:- Shareholders expect managers to earn an ROE higher than the firm’s cost of capital.

The ROE of firms in an industry tends to be driven closer to the industry mean over time. From

the year 2007 to 2008, Yes Bank’s ROE increased. It increases on continues basis. It will create

the good impression of company in the mind of the shareholder. It continually shows increasing

trend also in the year 2009. Shareholders invests in the company with keep in their mind that to

earn some profit. This continually increase the interest of shareholder to invest in the company.

5. EARNING PER SHARE:-

Page 23

Yes Bank 2009

Financial analysts regard the earning per share (EPS) as an important measure of profitability.

EPS is useful in comparing performance over time. But it is not of much help in making

comparisons across firms because the no. of equity shares can differ even if all of them have

identical amount of share holder’s equity. It is useful as an input into the price earning ratio.

Formula= Profit After Tax No. of equity Shares

Earnings per share in 2009= 30384 = 10.23 2969

Earnings per share in 2008 = 20002 = 6.76 2958

Earnings per share in 2007 = 9437 = 3.37 2800

Page 24

Yes Bank 2009

Comment:-

This ratio shows the profitability of the firm from the owner’s point of view. In the

year 2007, EPS is Rs. 3.37 but then after the EPS ratio has increasing trend and it reach at Rs.

10.23 in the year 2009. This financial position of the company shows a considerable increase

from its position of the previous year. The EPS capacity of company increase more in the year

2009 compare to the year 2008. The overall financial position of the company is satisfactory. It

increases the attraction of shareholders to invest in the company. It also affects the current

market price of the share in the share market. As we have shown in the past, the high EPS always

attracts the investors to invest in company’s share.

GROSS PROFIT RATIO:-

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

Formula= Gross Profit * 100 Sales

Gross Profit Ratio in 2009 = 527.65 * 100 = 21.77% 2423.90

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

1590.84

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

Page 25

Yes Bank 2009

736.75

Comment:

Here gross profit of the firm is decreasing from the year 2007 to 2008. But after 2008 gross profit again

start to increase in the year 2009, but at the decreasing rate. The increase in the ratio is low compared to

decrease in the ratio. This shows that firm’s earnings are not in respect to sales.

LIQUIDITY RATIO :

Liquidity is the ability of a business to meet its short-term obligations when they fall due. An

enterprise should have enough cash and other current assets which can be converted into cash, so

that it can pay its suppliers and lenders on time. The most commonly used ratios are:

Page 26

Yes Bank 2009

Current ratio Quick ratio Debtor turnover ratio Inventory turnover ratio

1. CURRENT RATIO:-

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

company’s ability to pay its debts in the short term. It shows the amount of current assets a

company has per rupee of current liabilities.

Formula= Current assets Current liabilities

Current ratio in 2009 = 1,326.86 = 0.45

2,918.10

Current ratio in 2008 = 729.70 = 0.52 1,404.13

Current ratio in 2007 = 376.88 = 0.30 1,228.68

Page 27

Yes Bank 2009

Comment:-

The Current ratio indicates the working position of the company. There has been

considerable deterioration in the current ratio of the company from 2008 to 2009. As we have

seen on one hand current assets and current liabilities both are increasing. The decrease in

current ratio means, that in the year 2009 compared to 2008 the company had less current assets

to meet its current liabilities. As shown that the decrease in the year 2009 is less as compared to

increase in the year 2008. The situation of working capital of the company is more declined year

to year. If immediate steps are not to be taken by the company to remedy the situation, the

company will be put into considerable trouble.

2. QUICK RATIO/ACID TEST RATIO:

The quick ratio or acid test ratio is computed as a supplement to the current ratio. This ratio

relates relatively more liquid current assets, usually current assets less inventories, to current

liabilities. All current assets are not equally liquid. While cash is readily available to make

payments to suppliers and debtors can be quickly converted into cash, inventories are two steps

Page 28

Yes Bank 2009

away from conversion into cash. Thus, a large current ratio by itself is not a satisfactory measure

of liquidity when inventories constitute a major part of the current assets.

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

Quick ratio in 2009 = 1,326.86 = 0.45 2,918.10

Quick ratio in 2008 = 729.70 = 0.52 1,404.13

Quick ratio in 2007 = 376.88 = 0.30 1,228.68

Page 29

Yes Bank 2009

Comment:-

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

DEBTORS TURNOVER RATIO:-

The debtor turnover ratio measures efficacy of a firm’s credit and collection policy and shows

the no. of times each year the debtors turn into cash. It provides some indication of the quality of

a firm’s debtors and collection efforts. High debtor turnover indicates that debtors are being

converted rapidly into cash and the quality of the company portfolio of debtor is good. The

ability of a company to collect credit from its customer in a prompt manner enhances its

liquidity. Debtor turnover is the ratio of sales to average debtors.

Formula= Credit sales

Avg. debtors

Page 30

Yes Bank 2009

3. PRICE-TO-BOOK RATIO:-

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

Formula = Market price per share Book value per share

Price-to-book ratio in 2009 = 296.98 = 29.69 10.00



Page 31

Yes Bank 2009

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

Du Pont Chart:-

Income Statement

Sales

Other Income

COGS

G&A

Gross Profit

OperatingExpenses

Earningsbefore interest& taxes (EBIT)

Interest Paid

Net Profit

Sales

EBIT

Total Assets

EBIT onAssets

Return

Page 32

Yes Bank 2009

Depreciation

Other Expense

Taxes

Profit Margin

on Equity

Assets

Cash

Receivables

Inventory

Other Assets

Fixed Assets

Current Assets

CurrentLiabilities

Sales

Total Assets

WorkingCapital

AssetsTurnover

Liabilities & Equity

Page 33

Yes Bank 2009

Payables

Notes Payables

Other Liability

CurrentLiabilities

Non-CurrentLiabilities

Capital

RetainedEarnings

TotalLiabilities

EndingNet Worth

Total

BeginningNet Worth

Leverage

MULTI-STEP PROFIT AND LOSS ACCOUNT (Rs. in Cr)

PARTICULARS 2009 2008 2007Gross Sales 2,423.90 1,590.84 736.75Less: Excise duty 0.00 0.00 0.00NET ASSET 5,656.90 4,520.45 2,292.20ADD: other income 34.54 74.53 45.44GROSS PROFIT 5691.44 4594.98 2337.64Less: C.O.G.S 0.00 0.00 0.00

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Yes Bank 2009

Goods purchase for resale 0.00 0.00 0.00Personnel(employee)cost 218.02 202.41 117.47Manufacturing administration & other expenses 1719.63 1109.39 484.32PBDIT 520.79 353.57 180.40Less: Interest 0.00 0.00 0.00PBDT 520.79 353.57 180.40Less: Depreciation & Amortization 30.10 19.23 11.07PBT before exceptional items 490.69 334.34 169.33Less: Exceptional items 0.00 0.00 0.0PBT 466.08 306.50 150.27Taxation: Current Tax 162.07 106.46 55.91 Deferred tax 0.00 0.00 0.00 Fringe benefit tax 0.00 0.00 0.00Add: Income tax for earlier year 162.07 106.46 55.91

304.01 200.04 94.36PAT 162.07 106.46 55.91

COMMON-SIZED BALANCE – SHEET

(Rs. in Cr)

PARTICULARS 31-03-2009 % 31-03-2008 % 31-03-2007

%

Sources of FundsShareholders’ Funds:Share capital 296.98 1.67 295.79 2.03 280.00 3.10Reserves & surplus 1,327.24 7.46 1,023.13 7.01 507.06 5.63

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Yes Bank 2009

1624.22 9.13 1318.92 9.04 787.06 8.74Loan Funds : Secured loan - - -

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

17793.64 100 14592.08 100 9007.45 100Application of fundFixed assets: Gross Block 194.88 2.81 133.01 2.43 86.66 3.23Less: Depreciation 64.15 0.92 35.73 0.65 17.38 0.66 Net Block 130.73 1.88 97.28 1.78 69.28 2.64Capital work-in-progress

0.39 0.005 3.89 0.07 1.59 0.06

131.12 1.89 101.17 1.85 70.87 2.64Investments: 7,117.02 102.63 5,093.71 92.96 3,073.12 117.34

Current Assets/loans/advances:Cash and Bank balances

1,277.72 18.42 959.24 17.50 389 .76 14.88

current Assets, Loans and Advances

1,326.8619.13 729.70 13.32 376.88 14.05

2604.58 37.55 1688.94 30.82 766.64 28.58Less: Current liabilities and Provisions

2,918.10 42.08 1,404.13 25.62 1,228.68 45.81

Net current Assets 6934.62 100 5479.69 100 2681.95 100Miscellaneous Expenses

_ _ _ _ _ _

COMMON SIZED PROIFT & LOSS ACCOUNT

(Rs. in Cr)

INCOME 2009 % 2008 % 2007 %

Net sales 2,423.90 133.12 1,590.84 132.35 736.75 139.09

Other income 34.54 1.89 74.53 6.20 45.44 8.57

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Yes Bank 2009

TOTAL (A) 2458.44 135.02 1665.37 138.55 782.19 147.67

EXPENDITURE

Personnel cost 218.02 11.97 202.41 16.84 117.47 22.17

Selling & general expenses

227.49 12.49 135.28 11.25 68.06 12.85

Depreciation & Amortization expenses

30.10 1.65 19.23 1.60 11.07 2.09

TOTAL (B) 475.61 26.12 356.92 29.69 196.6 37.12

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

Less: Income Tax 162.07 8.90 106.46 8.86 55.91 10.55

PAT 1820.76 100 1201.99 100 529.68 100

Add: income tax for earlier year

0.00 0.00 0.00 0.00 0.00 0.00

Balance transferred from previous year

0.00 0.00 0.00 0.00 0.00 0.00

Total available for appropriation

1820.76 100 1201.99 100 529.68 100

ANALYTICAL BALANCE SHEET

(Rs. in Cr)

PARTICULARS 2008-09 2007-08 2006-07APPLICATION OF FUNDS:

FIXED ASSETS Gross Block: 194.88 133.01 86.66 Less: Accumulated Depreciation. 64.15 35.73 17.38

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Yes Bank 2009

Net Block 130.73 97.28 69.28 Capital work-in-progress 0.39 3.89 1.59

131.12 101.17 70.87INVESTMENT 7,117.02 5,093.71 3,073.12

CURRENT ASSETS, LOANS & ADVANCES

1,326.86 729.70 376.88

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

NET CURRENT ASSETS -1,591.24 -674.42 -851.80

TOTAL ASSETS 5656.9 4,520.46 2,292.20LESS: LOAN FUNDS & OTHERS Secured loans - - - Unsecured loans 16,169.42 13,273.16 8,220.39

+ deferred tax liabilities - - -4032.68 3201.54 1505.141624.22 1318.92 787.06

REPRESENTED BY : Share Capital 296.98 295.79 280.00 Reserves & Surplus 1,327.24 1,023.13 507.06

EQUITY OWNER’S FUND 1624.22 1318.92 787.06

HORIZONTAL PROFIT AND LOSS ACCOUNT ANALYSIS

Particulars 2009(Rs. in

Increase / Decrease

2008(Rs. in

Increase/ Decrease

2007(Rs. in

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Yes Bank 2009

Cr) over 2007 (%)

Cr) over 2007 (%)

Cr)

Gross Sales 2,423.90 228.99 1,590.84 115.93 736.75Less: Excise duty 0.00 0.00 0.00NET ASSET 5,656.90 146.79 4,520.45 97.21 2,292.20ADD: other income 34.54 (76.01) 74.53 64.01 45.44GROS PROFIT 5691.44 143.46 4594.98 96.56 2337.64Less: C.O.G.S 0.00 - 0.00 - 0.00Goods purchase for resale 0.00 - 0.00 - 0.00Personnel(employee)cost 218.02 85.59 202.41 72.30 117.47Manufacturing administration & other expenses

1719.63 255.06 1109.39 129.06 484.32

PBDIT 520.79 188.68 353.57 195.99 180.40Less: Interest 0.00 - 0.00 - 0.00PBDT 520.79 188.68 353.57 195.99 180.40Less: Depreciation & Amortization

30.10 171.90 19.23 73.71 11.07

PBT before exceptional items

490.69 189.78 334.34 197.45 169.33

Less: Exceptional items 0.00 - 0.00 - 0.0PBT 466.08 189.78 306.50 197.45 150.27Taxation: Current Tax 162.07 189.87 106.46 90.41 55.91 Deferred tax 0.00 - 0.00 - 0.00 Fringe benefit tax 0.00 - 0.00 - 0.00

162.07 189.87 106.46 90.41 55.91PAT 304.01 222.18 200.04 111.99 94.36

HORIZONTAL BALANCE SHEET ANALYSIS

PARTICULARS 31-03-2009(Rs. in Cr)

Increase / Decrease

over2007(%)

31-03-2008(Rs. in Cr)

Increase / Decrease

over2007(%)

31-03-2007(Rs. in Cr)

Sources of FundsShareholders’ Funds:Share capital 296.98 6.06 295.79 5.64 280.00

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Yes Bank 2009

Reserves & surplus 1,327.24 161.75 1,023.13 101.77 507.06

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

Deferred tax liability 0.00 - 0.00 - 0.00

Application of fundFixed assets: Gross Block 194.88 124.88 133.01 53.48 86.66Less: Depreciation 30.10 172.64 19.23 74.18 11.07 Net Block 130.73 88.69 97.28 40.41 69.28Capital work-in-progress

0.39 (24.52) 3.89244.65 1.59

Investments: 7,117.02 131.60 5,093.71 65.75 3,073.12Current Assets/loans/advances:

1,326.86 252.06 729.70193.62 376.88

Sundry debtors 0.00 - 0.00 - 0.00Cash and Bank balances

1,277.72 227.82 959.24 146.11 389.76

Other current Assets 1,326.86 252.06 729.70 193.62 376.88

Less: Current liabilities and Provisions

2,918.10 137.49 1,404.13 14.28 1,228.68

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

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Documents

Financial Analysis Report on Yes Bank