Yes Bank 200 9
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 a s 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, 1 , "Objectives of Financial Statements," provides reporting goals
Page 1
Yes Bank 200 9
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, 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, 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 bank s (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 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 b anks holding 18.2% and 6.5% respectively
Page 2
Yes Bank 200 9
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, 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, 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 bank s (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 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 b anks holding 18.2% and 6.5% respectively
Page 2
Yes Bank 200 9 History:Yes Bank India , founded under the initiative of Rana Kapoor and Ashok Kapur, is known for
comprehensive banking and providing financial solutions to its customers. The main mission of the Yes Bank in India is to establish a hi-tech driven private Indian bank catering to the needs of the emerging India. The founders got the financial assistance from the Rabobank Nederland, the world's only AAA rated private bank, and three respected global institutional private equity investors, CVC Citigroup, AIF Capital and ChrysCapital. At present, Yes Bank India has forty fully operational branches. Activities: The main feature that differentiates Yes Bank India in the banking industry is their use of knowledge bankers who are industry experts in various sectors of Indian economy thereby helping their valued customers with in-depth knowledge of these sectors. In general the products p roducts 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 200 9
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
Yes Bank 200 9 Board Of Directors:S.No
Name
Designation
1
Mr. Berend Du Ron
Alternate Director
2
Mr. S L Kapur
Independent Director
3
Mr. Arun K Mago
Independent Director
4
Mr. Ajay Vohra
Independent Director
5
Mr. Bharat Patel
Independent Director
6
Mr. Wouter Kolff
Independent Director
7
Ms. Radha Singh
Independent Director
8
Mr. Rana Kapoor
Managing Director & CEO
9
Mr. Sipko Schat
Nominee Director
Key Officials:Name
Designation
Rana Kapoor
Managing Director & CEO
Sanjeev Kapoor
Executive VP & Co. Secretary
SHARE HOLDER PATTERN:Shareholding as on : Face Value
30/09/2009
30/06/2009
31/03/2009
10.00
10.00
10.00
Page 5
Yes Bank 200 9 No. Of Shares % HoldingNo. Of Shares % HoldingNo. Of Shares % Holding PROMOTER'S HOLDING Indian Promoters
Sub Total
93243005
31.27
91743005
30.88
96743005
32.58
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
3731899
1.25
3383808
1.14
2829028
0.95
141742189
47.54
136073997
45.80
148258551
49.92
167801136
56.28
160559780
54.05
156910422
52.84
Banks Fin. Inst. and Insurance FII's
Sub Total
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
10705061
3.59
16906944
5.69
12802520
4.31
26421148
8.86
27871201
9.38
30522983
10.28
298170350
100.00
Sub Total General Public
GRAND TOTAL
297080930
100.00
296978930
100.00
Capital Structure:From
To
Year Year
Class Of Share
Authorise Issued
Paid Up
d Capital Capital Shares in (Rs.Cr)
(Rs.Cr)
(Nos)
Paid
Paid
Up
Up
Face Capital Value (Rs.Cr)
2008
2009
Equity Share
400.00 296.98 296978930 10.00 296.98
2007
2008
Equity Share
400.00 295.79 295789750 10.00 295.79
Page 6
Yes Bank 200 9 2006
2007
Equity Share
400.00 280.00 280000000 10.00 280.00
2005
2006
Equity Share
400.00 270.00 270000000 10.00 270.00
2003
2005
Equity Share
400.00 200.00 200000000 10.00 200.00
Annual Report: -
Sales Other income Employee Expenses Other Expenses Total interest Gross profit Provisions Made
(Rs in Cr.)
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
2,003.32
1,310.82
587.60
190.18
29.98
435.02
354.53
194.57
99.74
18.17
0.00
202.41
117.47
50.12
21.27
418.55
138.75
76.03
36.00
18.67
1,492.14
974.11
416.26
104.72
11.85
527.65
350.08
172.41
99.08
-3.64
61.74
43.60
49.30
14.64
0.12
Page 7
Yes Bank 200 9 Net depreciation
0.00
0.00
0.00
0.00
0.00
162.07
106.46
28.75
29.12
0.00
0.00
0.00
0.00
0.00
0.00
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
296.98
295.79
280.00
270.00
200.00
0.00
0.00
0.00
0.00
0.00
2,002.36
1,953.19
1,795.29
1,657.50
957.50
67.42
66.03
64.12
61.39
47.88
0.00
0.00
0.00
0.00
0.00
Capital Adequacy Ratio
16.63
13.64
13.56
16.43
18.81
EPS (in Rs.)
10.23
6.76
3.37
2.05
-0.19
Total taxation Extra ordinary item Net profit / loss
Equity capital Equity Dividend Rate Agg. Non-Promoter Shares (in Lacs) Agg. Non-Promoter Holding (%) Government Share
Profit & Loss Account:-
(Rs in Cr.)
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
2,423.90
1,590.84
736.75
283.81
47.39
1,492.14
974.11
416.26
104.72
11.85
218.02
202.41
117.47
50.12
21.27
1.48
1.67
2.68
1.77
2.48
226.01
133.61
65.38
35.90
14.94
0.00
0.00
0.00
0.00
0.00
1,937.65
1,311.80
601.79
192.51
50.54
486.25
279.04
134.96
91.30
-3.15
Income : Operating Income
Expenses Financial Expenses Personnel Expenses Selling Expenses Administrative Expenses Expenses Capitalised
Operating Expenditure
Operating Profit
Page 8
Yes Bank 200 9
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
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
-0.16
-0.01
0.00
-0.03
-0.02
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
548.92
305.32
132.10
51.57
-3.76
Other Write offs
Non Recurring Items Other Non Cash adjustments
Retained Earnings
Page 9
Yes Bank 200 9
Balance Sheet:Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Sources of funds Owner's fund Equity share capital 296.98 295.79 280.00 270.00 200.00 Share application money Preference share capital Reserves & surplus 1,327.24 1,023.13 507.06 302.69 17.00 Loan funds Secured loans Unsecured loans 16,169.42 13,273.16 8,220.39 2,910.38 663.03 Total 17,793.64 14,592.08 9,007.45 3,483.07 880.03 Uses of funds Fixed assets Gross block 194.88 133.01 86.66 36.24 17.59 Less : revaluation reserve Less : accumulated depreciation 64.15 35.73 17.38 6.81 1.25 Net block 130.73 97.28 69.28 29.43 16.34 Capital work-in-progress 0.39 3.89 1.59 5.29 3.30 Investments 7,117.02 5,093.71 3,073.12 1,350.14 394.86 Net current assets Current assets, loans & advances 1,326.86 729.70 376.88 155.01 49.66 Less : current liabilities & provisions 2,918.10 1,404.13 1,228.68 214.72 28.40 Total net current assets -1,591.24 -674.42 -851.80 -59.71 21.26 Miscellaneous expenses not written Total 5,656.90 4,520.45 2,292.20 1,325.16 435.77 Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities 43,481.94 68,874.54 52,061.58 17,524.20 6,522.22 Number of equity shares outstanding (Lacs) 2969.79 2957.90 2800.00 2700.00 2000.00 Page 10
Yes Bank 200 9
Ratios:Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Per share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs)
10.24 11.25 10.23 11.24
6.76 7.41 6.76 7.41
3.37 3.77 3.37 3.77
2.05 2.26 2.05 2.26
-0.18 -0.12 -0.18 -0.12 Page 11
Yes Bank 200 9 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Dividend per share Operating profit per share (Rs) 16.37 9.43 4.82 3.38 -0.15 Book value (excl rev res) per share (Rs) 1.33 1.18 28.11 21.21 10.85 Book value (incl rev res) per share (Rs.) 1.33 1.18 28.11 21.21 10.85 Net operating income per share (Rs) 81.62 53.78 26.31 10.51 2.37 Free reserves per share (Rs) 36.47 31.18 16.66 10.70 0.85 Profitability ratios Operating margin (%) 20.06 17.54 18.31 32.16 -6.66 Gross profit margin (%) 21.77 22.00 23.40 30.17 -9.29 Net profit margin (%) 12.35 12.01 12.06 19.08 -7.80 Adjusted cash margin (%) 13.59 13.16 13.48 21.04 -5.17 Adjusted return on net worth (%) 18.71 15.16 11.99 9.66 -1.72 Reported return on net worth (%) 18.70 15.16 11.98 9.66 -1.73 Return on long term funds (%) 120.56 97.09 71.98 33.03 2.91 Leverage ratios Long term debt / Equity Total debt/equity 9.96 10.06 10.44 5.08 3.06 Owners fund as % of total source 9.12 9.03 8.73 16.44 24.65 Fixed assets turnover ratio 12.44 11.96 8.50 7.83 2.69 Liquidity ratios Current ratio 0.45 0.51 0.30 0.72 1.75 Current ratio (inc. st loans) 0.06 0.04 0.03 0.04 0.07 Quick ratio 5.14 7.92 5.74 12.34 30.00 Inventory turnover ratio Payout ratios Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio 100.00 100.00 100.00 100.00 Cash earnings retention ratio 100.00 100.00 100.00 100.00 Coverage ratios Adjusted cash flow time total debt 48.40 60.54 77.96 47.70 Financial charges coverage ratio 1.35 1.36 1.43 1.93 0.79 Fin. charges cov.ratio (post tax) 1.22 1.23 1.25 1.58 0.78 Component ratios Material cost component (% earnings) Selling cost Component 0.06 0.10 0.36 0.62 5.23 Exports as percent of total sales Import comp. in raw mat. Consumed Long term assets / total Assets 0.84 0.87 0.89 0.89 0.89 Page 12
Yes Bank 200 9 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Bonus component in equity capital (%) -
Cash Flow:-
(Rs in Cr.)
Mar ' 09
Mar ' 08
Mar ' 07 Mar ' 06 Mar ' 05
Profit Before Tax
465.92
306.54
143.68
84.45
-5.58
Net Cash Flow-Operating Activity
-364.59
-196.48
1,801.35
-165.96
-55.36
Net Cash Used In Investing Activity
-60.20
-49.54
-1,222.69
-70.09
-108.61
Net Cash Used in Fin. Activity
719.93
580.74
498.60
398.61
217.00
Net Inc/Dec In Cash And Equivalent
295.14
334.73
1,077.26
162.55
53.03
Cash And Equivalent Begin of Year
1,627.57
1,292.84
215.58
53.03
0.00
Cash And Equivalent End Of Year
1,922.70
1,627.57
1,292.84
215.58
53.03
Page 13
Yes Bank 200 9
RATIOS ANALYSIS:PROFITABILITY RATIO A profitability ratio measures the degree of operating success of a company. The only reason why investors are interested in a company is that they think they will earn a reasonable return in the form of capital gain and dividends on their investments. The share holders will not be interested in a company that does not earn sufficient margin on its sales. The failure to earn an adequate rate of profit over a period will also drain the company’s cash and impair its liquidity.
Commonly used Profitability Ratios:•
Profit margin ratio
•
Asset turnover ratio
•
Return on asset ratio
•
Return on equity ratio
•
Earnings per share ratio
•
Gross Profit ratio
•
Net profit ratio
1. PROFIT MARGIN RATIO:
Page 14
Yes Bank 200 9 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 1590.84
= 12.57 %
Profit margin ratio in 2007 = 9437 = 12.80 % 736.75
Page 15
Yes Bank 200 9
Comment:-
The profit margin ratio of Yes Bank shows decrease, 12.80 % in 2007 to 12.57 % in 2008. This ratio provides some indication of cut-off in profit margin of company. In the year 2009 the profit margin level of the company decreases more from the level of 2008. It decreases from 12.57 of 2008 to the level of loss 12.53 in 2009. It is bad for company’s profit earning capacity. It affects company’s credit in the market. The company has to take certain steps immediately to improve their management, which lead the company to sufficient profit earning level.
2. ASSETS TURNOVER RATIO:
This ratio measure firm’s efficiency in utilizing its assets. It indicates how many times the assets were turned over in a period and there by generated sales. If assets turnover is high, the is managing its assets efficiently. If it is low, it means the company has more assets then it really needs for its operation. This ratio shows the firm’s ability in generation sales from all financial resources committed total assets.
Formula=
Sales______ Average Total Assets
Assets turnover ratio in 2009 = 2423.90 194.88
= 12.43 times
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 16
Yes Bank 200 9
Page 17
Yes Bank 200 9 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 u tilizing its fixed assets efficiently.
3. RETURN ON ASSETS /RETURN ON INVESTMENT:
This ratio measures profitability from a given level of investment. It is an excellent indicator of overall performance of a company.
Formula=
Profit after tax Average Total Assets
* 100
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
Page 18
Yes Bank 200 9 Average Total Assets = Current year’s total assets + Previous Year’s Total Assets 2 Average Total Assets In 2009 = 22900.80 + 16982.42 = 19941.61 2 Average Total Assets In 2007 = 16982.42 + 11103.44 = 14042.93 2 Average Total Assets In 2006 = 11103.44 + 4162.54 = 7632.99 2
Page 19
Yes Bank 200 9
Comment:
This ratio shows overall performance of the company. We can see that it shows increasing trend. The continuous increase in the ratio describes that the investments made by the company is not going in the profitable manner for the company. It shows that the company’s performance is decrease in the no. of years.
4. RETURN ON EQUITY:
This ratio measures profitability from the stand point of the company’s share holders. It measures the efficiency with which share holders funds are employed in order to moderate the
Page 20
Yes Bank 200 9 influence of share holders transactions such as share issue, buy back and retained earnings, analysts generally use the average of beginning and ending amounts of the year.
Formula=
Profit after Tax Average shareholder’s equity
Return on equity in 2009 = 30384 812.11 Return on equity in 2008= 20002 659.46
= 37.41
= 30.33
Return on equity in 2007= 9437 = 23.98 393.53
ReturnOn Equity 40 35 30 25 20 Return
15 10 5 0 Jan-07
Jan-08
Jan-09
Comment:Page 21
Yes Bank 200 9 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.
Page 22
Yes Bank 200 9 5. EARNING PER SHARE:-
Financial analysts regard the earning per share (EPS) as an important measure of profitability. EPS is useful in comparing performance over time. But it is not of much help in making comparisons across firms because the no. of equity shares can differ even if all of them have identical amount of share holder’s equity. It is useful as an input into the price earning ratio. Formula= Profit After Tax No. of equity Shares
Earnings per share in 2009= 30384 2969
= 10.23
Earnings per share in 2008 = 20002 2958
= 6.76
Earnings per share in 2007 = 9437 = 3.37 2800
EarningPer Share 12 10 8 6 Earning 4 2 0 Jan-07
Jan-08
Jan-09 Page 23
Yes Bank 200 9
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 compan y 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% Page 24
Yes Bank 200 9 1590.84 Gross Profit Ratio in 2007 = 172.41 * 100 = 23.40% 736.75
Grossprofit 24 23.5 23 22.5 Gr
22 21.5 21 20.5 Jan-07
Jan-08
Jan-09
Comment: Here gross profit of the firm is decreasing from the year 2007 to 2008. But after 2008 gross profit again start to increase in the year 2009, but at the decreasing rate. The increase in the ratio is low compared to decrease in the ratio. This shows that firm’s earnings are not in respect to sales.
LIQUIDITY RATIO: Page 25
Yes Bank 200 9 Liquidity is the ability of a business to meet its short-term obligations when they fall due. An enterprise should have enough cash and other current assets which can be converted into cash, so that it can pay its suppliers and lenders on time. The most commonly used ratios are: •
Current ratio
•
Quick ratio
•
Debtor turnover ratio
•
Inventory turnover ratio
1. CURRENT RATIO:-
This is the ratio of current assets to current liabilities. It is a widely used indicator of a company’s ability to pay its debts in the short term. It shows the amount of current assets a company has per rupee of current liabilities. Formula= Current assets Current liabilities Current ratio in 2009 = 1,326.86 = 0.45 2,918.10 Current ratio in 2008 = 729.70 = 0.52 1,404.13 Current ratio in 2007 = 376.88 = 0.30 1,228.68
Page 26
Yes Bank 200 9
CurrentRatio 0.6 0.5 0.4 0.3 Cur 0.2 0.1 0 31/3/2009
31/3/2008
31/3/2007
Comment:-
The Current ratio indicates the working position of the company. There has been considerable deterioration in the current ratio of the company from 2008 to 2009. As we have seen on one hand current assets and current liabilities both are increasing. The decrease in current ratio means, that in the year 2009 compared to 2008 the company had less current assets to meet its current liabilities. As shown that the decrease in the year 2009 is less as compared to increase in the year 2008. The situation of working capital of the company is more declined year to year. If immediate steps are not to be taken by the company to remedy the situation, the company will be put into considerable trouble.
2. QUICK RATIO/ACID TEST RATIO:
The quick ratio or acid test ratio is computed as a supplement to the current ratio. This ratio relates relatively more liquid current assets, usually current assets less inventories, to current liabilities. All current assets are not equally liquid. While cash is readily available to make Page 27
Yes Bank 200 9 payments to suppliers and debtors can be quickly converted into cash, inventories are two steps away from conversion into cash. Thus, a large current ratio by itself is not a satisfactory measure of liquidity when inventories constitute a major part of the current assets.
Formula= Quick assets (current assets-stock-debtors) Current Liabilities
Quick ratio in 2009 = 1,326.86 = 0.45 2,918.10 Quick ratio in 2008 = 729.70 = 0.52 1,404.13 Quick ratio in 2007 = 376.88 = 0.30 1,228.68
Page 28
Yes Bank 200 9
QuickRatio 0.6 0.5 0.4 0.3 Q 0.2 0.1 0 Comment:-
31/3/2009
31/3/2008
31/3/2007
Company’s inventories drove the improvement in the cu rrent 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.
Page 29
Yes Bank 200 9
DEBTORS TURNOVER RATIO:-
The debtor turnover ratio measures efficacy of a firm’s credit and collection policy and shows the no. of times each year the debtors turn into cash. It provides some indication of the quality of a firm’s debtors and collection efforts. High debtor turnover indicates that debtors are being converted rapidly into cash and the quality of the company portfolio of debtor is good. The ability of a company to collect credit from its customer in a prompt manner enhances its liquidity. Debtor turnover is the ratio of sales to average debtors.
Formula= Credit sales Avg. debtors
3. PRICE-TO-BOOK RATIO:-
This ratio measures and compares the market p rice of company’s share with its book value. Book value is equal to the amount of share holders equity divided by the no. of shares. Formula = Market price per share Book value per share Price-to-book ratio in 2009 = 296.98 = 29.69 10.00 Price-to-book ratio in 2008 = 295.79 = 29.57 10.00 Price-to-book ratio in 2006 = 280.00 = 28.00 10.00
Page 30
Yes Bank 200 9
Price-To-BookRatio 30 29.5 29 28.5 Price-To28 27.5 27 31/3/2009
31/3/2008
31/3/2007
Comment:
The low price to book ratio is often seen as an indication of under pricing of the stock. A price to book ratio of more than one means that the market expects the stock to earn at a rate higher than the required note. Both the profit earning and profit bearing ratios are affected by the choice of accounting methods since the denominator is an accounting variable. This ratio shows decreasing trend. It continually increases from 28 to 29.5 7 and from 29.57 to 29.69.
Page 31
Yes Bank 200 9
Du Pont Chart:Income Statement
Sales þÿ
Gross Profit þÿ
Other Income þÿ
COGS þÿ
G&A
Operating Expenses þÿ
Earnings before interest & taxes (EBIT) þÿ
Interest Paid þÿ
þÿ
Taxes
Depreciation
Net Profit þÿ
EBIT þÿ
EBIT on Assets þÿ
Sales þÿ
Total Assets þÿ
Profit Margin þÿ
Return on Equity þÿ
þÿ
þÿ
Other Expense þÿ
Assets
Cash þÿ
Sales Receivables þÿ
Inventory þÿ
Fixed Assets þÿ
þÿ
Total Assets
Assets Turnover þÿ
þÿ
Current Working
Page 32
Yes Bank 200 9 Other Assets
Assets
þÿ
þÿ
Capital þÿ
Current Liabilities þÿ
Liabilities & Equity
Payables þÿ
Notes Payables þÿ
Other Liability þÿ
Current Liabilities þÿ
NonCurrent Liabilities
Total Liabilities þÿ
þÿ
Capital þÿ
Ending Net Worth
Total þÿ
Leverage þÿ
Beginning Net Worth þÿ
þÿ
Retained Earnings þÿ
Page 33
Yes Bank 200 9
MULTI-STEP PROFIT AND LOSS ACCOUNT (Rs. in Cr)
PARTICULARS Gross Sales Less: Excise duty NET ASSET ADD: other income GROSS PROFIT Less: C.O.G.S Goods purchase for resale Personnel(employee)cost Manufacturing administration & other expenses PBDIT Less: Interest PBDT Less: Depreciation & Amortization PBT before exceptional items Less: Exceptional items PBT Taxation: Current Tax Deferred tax Fringe benefit tax Add: Income tax for earlier year PAT
2009
2008
2007
2,423.90 0.00 5,656.90 34.54 5691.44 0.00 0.00 218.02 1719.63 520.79 0.00 520.79 30.10 490.69 0.00 466.08
1,590.84 0.00 4,520.45 74.53 4594.98 0.00 0.00 202.41 1109.39 353.57 0.00 353.57 19.23 334.34 0.00 306.50
736.75 0.00 2,292.20 45.44 2337.64 0.00 0.00 117.47 484.32 180.40 0.00 180.40 11.07 169.33 0.0 150.27
162.07 0.00 0.00 162.07
106.46 0.00 0.00 106.46
55.91 0.00 0.00 55.91
304.01 162.07
200.04 106.46
94.36 55.91
Page 34
Yes Bank 200 9
COMMON-SIZED BALANCE – SHEET (Rs. in Cr)
PARTICULARS
31-03-2009
%
31-03-2008
%
31-032007
%
296.98 1,327.24 1624.22
1.67 7.46 9.13
295.79 1,023.13 1318.92
2.03 7.01 9.04
280.00 507.06 787.06
3.10 5.63 8.74
Sources of Funds Shareholders’ Funds: Share capital Reserves & surplus Loan Funds : Secured loan
Unsecured loan
-
-
-
16,169.42
90.87
13,273.16
90.96
8,220.39
91.26
17793.64
100
14592.08
100
9007.45
100
194.88 64.15 130.73 0.39
2.81 0.92 1.88 0.005
133.01 35.73 97.28 3.89
2.43 0.65 1.78 0.07
86.66 17.38 69.28 1.59
3.23 0.66 2.64 0.06
131.12 7,117.02
1.89 102.63
101.17 5,093.71
1.85 92.96
70.87 3,073.12
2.64 117.34
1,277.72
18.42
959.24
17.50
389 .76
14.88
19.13
729.70
13.32
376.88
14.05
2604.58 2,918.10
37.55 42.08
1688.94 1,404.13
30.82 25.62
766.64 1,228.68
28.58 45.81
6934.62 _
100 _
5479.69 _
100 _
2681.95 _
100 _
Application of fund Fixed assets: Gross Block Less: Depreciation Net Block Capital work-in progress Investments: Current Assets/loans/advances: Cash and Bank balances current Assets, Loans and Advances
Less: Current liabilities and Provisions Net current Assets Miscellaneous
1,326.86
Page 35
Yes Bank 200 9 Expenses
COMMON SIZED PROIFT & LOSS ACCOUNT (Rs. in Cr)
INCOME Net sales
2009
%
2008
%
2007
%
2,423.90
133.12
1,590.84
132.35
736.75
139.09
Other income
34.54
1.89
74.53
6.20
45.44
8.57
TOTAL (A)
2458.44
135.02
1665.37
138.55
782.19
147.67
Personnel cost
218.02
11.97
202.41
16.84
117.47
22.17
Selling & general expenses Depreciation & Amortization expenses TOTAL (B)
227.49
12.49
135.28
11.25
68.06
12.85
30.10
1.65
19.23
1.60
11.07
2.09
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
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1820.76
100
1201.99
100
529.68
100
EXPENDITURE
Add: income tax for earlier year Balance transferred from previous year Total available for appropriation
Page 36
Yes Bank 200 9
ANALYTICAL
BALANCE SHEET (Rs. in Cr)
PARTICULARS
2008-09
2007-08
2006-07
194.88 64.15 130.73 0.39 131.12 7,117.02
133.01 35.73 97.28 3.89 101.17 5,093.71
86.66 17.38 69.28 1.59 70.87 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
5656.9
4,520.46
2,292.20
16,169.42
13,273.16
8,220.39
4032.68 1624.22
3201.54 1318.92
1505.14 787.06
296.98 1,327.24 1624.22
295.79 1,023.13 1318.92
280.00 507.06 787.06
APPLICATION OF FUNDS: FIXED ASSETS Gross Block: Less: Accumulated Depreciation. Net Block Capital work-in-progress
INVESTMENT
TOTAL ASSETS LESS: LOAN FUNDS & OTHERS Secured loans Unsecured loans
+ deferred tax liabilities
REPRESENTED BY : Share Capital Reserves & Surplus EQUITY OWNER’S FUND
Page 37
Yes Bank 200 9
HORIZONTAL PROFIT AND LOSS ACCOUNT ANALYSIS
Particulars
Gross Sales Less: Excise duty NET ASSET ADD: other income GROS PROFIT Less: C.O.G.S Goods purchase for resale Personnel(employee)cost Manufacturing administration & other expenses PBDIT Less: Interest PBDT Less: Depreciation & Amortization PBT before exceptional items Less: Exceptional items PBT Taxation: Current Tax
2009 (Rs. in Cr)
2,423.90 0.00 5,656.90
34.54 5691.44 0.00 0.00
218.02 1719.63
520.79
Increase / Decrease over 2007 (%) 228.99 146.79 (76.01) 143.46 85.59 255.06
2008 (Rs. in Cr)
1,590.84 0.00 4,520.45
74.53 4594.98 0.00 0.00
202.41 1109.39
353.57
30.10
188.68 188.68 171.90
490.69
0.00
Increase/ Decrease over 2007 (%) 115.93 97.21 64.01 96.56 72.30 129.06
2007 (Rs. in Cr)
736.75 0.00 2,292.20
45.44 2337.64 0.00 0.00
117.47 484.32
180.40
19.23
195.99 195.99 73.71
189.78
334.34
197.45
169.33
0.00
306.50
197.45
0.0
466.08
189.78
150.27
162.07
189.87
106.46
90.41
55.91
0.00 520.79
0.00 353.57
0.00 180.40
11.07
Page 38
Yes Bank 200 9 Deferred tax Fringe benefit tax PAT
0.00 0.00
162.07 304.01
189.87 222.18
0.00 0.00
106.46 200.04
90.41 111.99
0.00 0.00
55.91 94.36
HORIZONTAL BALANCE SHEET ANALYSIS 31-03-2009 (Rs. in Cr)
Increase / Decrease over 2007(%)
31-03-2008 (Rs. in Cr)
Increase / Decrease over 2007(%)
31-03-2007 (Rs. in Cr)
Shareholders’ Funds: Share capital Reserves & surplus
296.98 1,327.24
6.06 161.75
295.79 1,023.13
5.64 101.77
280.00 507.06
Loan Funds : Secured loan Unsecured loan
16,169.42
96.69
13,273.16
61.466
8,220.39
0.00
-
0.00
-
0.00
194.88
133.01
19.23
0.39
(24.52)
3.89
53.48 74.18 40.41 244.65
86.66
130.73
124.88 172.64 88.69
7,117.02
131.60
5,093.71
1,326.86
252.06
729.70
0.00
-
0.00
PARTICULARS
Sources of Funds
Deferred tax liability
Application of fund Fixed assets: Gross Block Less: Depreciation Net Block Capital work-in progress Investments: Current Assets/loans/advances: Sundry debtors
30.10
97.28
11.07 69.28 1.59
65.75 193.62
3,073.12 376.88
-
0.00 Page 39
