Working Capital Project in AXI

LIST OF TABLES
S.No
Particulars
2.5.1
Statement changes in working capital
2.5.2
Fund from operation on the year of 2009
2.5.3
2.5.4
2.5.5
2.5.6
2.5.7
Cash flow statement on the year of 2009
2.5.8
2.5.9
2.5.1
0
2.5.11 Cash flow statement on the year of 2013

2.5.1
2
Current ratio
2.5.1
3
Absolute liquidity ratio
2.5.1
4
Debt equity ratio
2.5.1
5
Proprietors ratio
Page No
LIST OF CHARTS
S.No
2.5.1 Fund from operation
2.5.2 Current ratio
2.5.3 Absolute liquidity ratio
2.5.4 Debt equity ratio
2.5.5 Proprietors ratio
Particulars
Page No
DATA ANALYSIS AND INTERPRETATION

TABLE 2.5.1 STATEMENT CHANGE IN WORKING CAPITAL
PARTICULARS
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
Cash balance
3077.96
4686.11
9124.23
5940.44
7666.45
Bank balance
629.28
4293.19
1217.09
4981.46
2158.19
Investment
18952.28
23974.47
28474.71
31215.44
37650.56
Advance
34756.20
47060.29
60423.84
74885.27
79003.93
Depreciation
419.40
509.20
569.11
655.95
768.63
Capital work in progress
11.80
19.73
24.88
13.07
7.67
Other asset
1484.35
1732.11
2061.29
2340.93
2917.70
TOTAL ASSET
59331.27
82275.10
101895.15
120032.56
130173.13
Borrowing
736.63
2896.23
6353.65
6548.28
8982.20
Other liabilities & provision
4914.43
6629.82
6353.84
7258.26
3794.90
Deposit
50529.32
68740.41
84325.58
100115.89
110794.71
Reserves
2510.17
3327.59
4197.90
5396.59
5804.18
Revaluation reserves
122.47
117.97
113.97
1209.57
1175.60
TOTAL LIABILITIES
58813.02
81712.02
101314.94
120528.59
130551.59
Net working capital(CA-
518.25
563.08
580.21
496.03
378.46
CURRENT ASSET:
CURRENT LIABILITIES:
CL)
INTERPRETATION:To working capital shows fluctuating trend. In the years 2011 to 2012 it shows decreases
trend and the rest of the years increases trend.
TABLE: 2.5.2 FUND FROM OPERATION 2010
Particulars
Amount(Rs)
Amount(Rs)
INCOME:
Interest Earned
4406.28
Other income
728.21
TOTAL INCOME
5134.49
EXPENDITURE:
Interest expended
2339.10
Employee cost
893.57
Selling and admin Expenses
390.63
Depreciation
55.34
Miscellaneous expenses
672.52
TOTAL EXPENSES
4351.16
Net Profit for the year
783.34
Equity share capital
544.80
Earning per shares
14.37
INTERPRETATION :The table shows that

in the year 2009-2010 there
was a total income 5134.49
and total expenditure4351.16 and cash net profit for the year 783.34 and equity shares capital
544.80 and earnings per shares14.37 decrease in EPS.

Particulars
Amount(Rs)
Amount(Rs)
INCOME:
Interest Earned
5832.07
Other income
862.76
TOTAL INCOME
6694.83
EXPENDITURE:
Interest expended
3271.27
Employee cost
931.07
465.80
Depreciation
61.12
957.14
TOTAL EXPENSES
5686.40
1008.43/
544.80
Earning per shares
18.51
INTERPRETATION :The table shows that in the year 2010 -2011 there was a total income 6694.83 and total
expenditure5686.40 and cash net profit for the year 1008.43 and equity shares capital 544.80 and
earnings per shares18.51 decrease in EPS.
TABLE :2.5.4 FUND FROM OPERATION 2012

Particulars
Amount(Rs)
Amount(Rs)
INCOME:
Interest Earned
7968.25
Other income
1075.46
TOTAL INCOME
9043.71
EXPENDITURE:
Interest expended
5288.79
Employee cost
949.68
419.34
Depreciation
75.10
1108.46
TOTAL EXPENSES
7841.37
1202.34
544.80
Earning per shares
22.07
earnings per shares22.07 increase in EPS.

Particulars
Amount(Rs)
Amount(Rs)
INCOME:
Interest Earned
9641.40
Other income
1713.07
TOTAL INCOME
11354.47
EXPENDITURE:
Interest expended
6771.81
Employee cost
1271.84
737.99
Depreciation
100.94
1146.10
TOTAL EXPENSES
10028.68
1325.79
544.80
Earning per shares
24.33
expenditure10735.40 and cash net profit for the year 10028.68 and equity shares capital 544.80
and earnings per shares24.33 increase in EPS.
TABLE :2.5.6 FUND FROM OPERATION 2014

Particulars
Amount(Rs)
Amount(Rs)
INCOME:
Interest Earned
10245.77
Other income
1196.59
TOTAL INCOME
11442.36
EXPENDITURE:
Interest expended
7077.91
Employee cost
1734.75
1320.98
Depreciation
111.76
490.00
TOTAL EXPENSES
10735.40
706.96
544.80
Earning per shares
12.98
earnings per shares12.98 decrease in EPS.
TABLE :2.5.7 CASH FLOW STATEMENT 2010
Particulars
Amount(Rs)
Net profit before Tax
0.00
Net cash from operating Activities
(1954.88)
Net cash (used in)/from investing Activities (60)

Net cash (used in)/from financing
768.91
Activities
Net (decrease)increase in cash and cash
(1246.71)
equivalents
Opening cash & cash Equivalents
4953.96
Closing cash &cash Equivalents
3707.24
INTERPRETATION:The table shows that in the year 2009 -2010 there was a net decreases in cash and cash
equivalents1246.71 and cash equivalents at beginning of the year was 4953.96 and cash
equivalents at the end of the year was in3707.24.
Particulars
Amount(Rs)
0.00
4516.35
Net cash (used in)/from investing Activities (114.04)

869.75
Activities
Net decrease(increase) in cash and cash
5272.06
equivalents
3707.24
8979.30
INTERPRETATION :The table shows that in the year 2010 -2011 there was a net increases in cash and cash
equivalents at the end of the year was in 8979.30.
Particulars
Amount(Rs)
0.00
2086.17

(598.71)
Activities
1362.02
equivalents
8979.30
10341.32
Particulars
Amount(Rs)
0.00
243.11

427.54
Activities
580.58
equivalents
10341.32
10921.90
Particulars
Amount(Rs)
706.96
(1210.09)

244.98
Activities
Net (decrease)increase in cash and cash
(1097.26)
equivalents
10921.90
9824.64
INTERPRETATION :The table shows that in the year 2013 -2014 there was a net decreases in cash and cash
TABLE:2.5.12 FUND FROM OPERATION
YEAR
NET PROFIT
EQUITY SHARES
RATIO
2010
783.34
CAPITAL
544.80
14.37
2011
1008.43
544.80
18.51
2012
1202.34
544.80
22.07
2013
1325.79
544.80
24.33
2014
706.96
544.80
12.98
Source :-Annual Report

INTERPRETATION :The above table shows the fund from operation ratio for the period 2009-2013. In the year
2009 the ratio was 14.37 that is lower the standard norm. The current ratio was continuously an
increase in the year 18.51,22.07,24.33 and 12.98 respectively. In increase and decrease in the
fund from operation ratio represent improvement in the liquidity position of the firm.
2.5.2 LIST OF CHART:-
2.5.2 FUND FROM OPERATION

4500
4000
3500
3000
RATIO
2500
2000
EQUITY SHARES
CAPITAL
1500
NET PROFIT
YEAR
1000
500
0
1
TABLE:2.5.13 CURREENT RATIO
YEAR
CURRENT ASSET
CURRENT
RATIO
2010
59331.27
LIABILITIES
58813.02
1.008
2011
82275.10
81712.02
1.006
2012
101895.15
101314.94
1.005
2013
120032.56
120528.59
0.995
2014
130173.13
130551.59
0.997
Source :- Annual Report

INTERPRETATION :The above table shows the current ratio for the period 2010-2014. In the year 2010 the
ratio was 1.008 that is higher the standard norm of 1:1 but the next year
1.006,1.005,0.955,0.997,respectively. In increase or decrease in. the current ratio represent
improvement in the liquidity position of a firm.
2.5.3 CURRENT RATIO
300000
250000
200000
RATIO
150000
CURRENT LIABILITIES
CURRENT ASSET
100000
YEAR
50000
0
1
TABLE: 2.5.14 ABSOLUTE LIQUIDITY RATIO
YEAR
ABSOLUTE
CURRENT
RATIO
2010
LIQUIDITY
22659.52
LIABILITIES
58813.02
0.39
2011
32953.77
81712.02
0.40
2012
38816.03
101314.94
0.38
2013
42137.34
120528.59
0.35
2014
47475.20
130551.59
0.36

INTERPRETATION :The above table shows the Absolute liquidity ratio for the period 2010 -2014. In the year
2010 the ratio was 0.39 that is lower the standard norm. the next year 0.40, 0.38, 0.35, 0.36,
respectively. An increase or decrease in the current ratio represent improvement in the liquidity
position. This indicates that the short term solvency position of the company is satisfactory.
2.5.4 ABSOLUTE LIQUIDITY RATIO
200000
180000
160000
140000
120000
RATIO
100000
CURRENT LIABILITIES
80000
ABSOLUTE LIQUIDITY
60000
YEAR
40000
20000
0
1
TABLE: 2.5.15 DEBT - EQUITY RATIO
YEAR
LONG TERM DEBT
SHARE HOLDERS
RATIO
2010
51265.95
FUND
3054.97
16.78
2011
71636.64
3872.39
19.49
2012
90679.23
4742.70
19.11
2013
106664.17
5941.39
17.95
2014
119776.91
6348.98
18.86

INTERPRETATION :The above table shows that the debt equity ratio of the company during the year 2010,
2011, 2021, 2013, 2014 was 16.78, 19.49, 19.11, 17.95, and 18.86 respectively. The company is
more dependent on outsider funds to its obligations. But the ratios are continuously decrease or
increase the year to year. It indicates to improve the position of the company.
2.5.5 DEBT EQUITY RATIO
140000
120000
100000
RATIO
80000
SHARE HOLDERS
FUND
60000
LONG TERM DEBT
40000
YEAR
20000
0
1
TABLE: 2.5.16 PROPRIETORS RATIO
YEAR
CURRENT ASSET
SHARE HOLDERS
RATIO
2010
59331.27
FUND
3054.97
19.42
2011
82275.10
3872.39
21.24
2012
101895.15
4742.70
21.48
2013
120032.56
5941.39
20.20
2014
130173.13
6348.98
20.50

INTERPRETATION :The above table shows that the proprietors ratios were 19.42, 21.24, 21.48, 20.20, 20.50
respectively for the year 2010 -2014. It implies that firms assets increases or decreases year by
year.
2.5.6 PROPRIETORS RATIO
160000
140000
120000
100000
RATIO
80000
SHARE HOLDERS
FUND
60000
CURRENT ASSET
YEAR
40000
20000
0
1

INTERPRETATION :The above table shows that the proprietors ratios were 19.42, 21.24, 21.48, 20.20, 20.50
respectively for the year 2010 -2014. It implies that firms assets increases or decreases year by
year.
CHAPTER -3
FINDINGS, SUGGESTIONS AND CONCLUSION:3.1 FINDINGS: Working capital requirement is lower in the year 2013 to 2014 when comparing
previous year.
Cash flow statement for the year 2010 and 2014 the amount is 1246.71 and
1097.26 is lower then comparing to other years
The fund from operation for the year 2013 is ratio 24.33 is highest then
comparing to other years.
The Current ratio for the year 2010 is ratio 1.008 is highest then comparing to
other years.
The Absolute Liquidity ratio for the year 2013 is ratio 0.35 is lowest then
comparing to other years.
The Debt equity ratio for the year 2011 is ratio 19.49 is highest then comparing
to other years.
The proprietors ratio for the year 2010 is ratio 19.42 is lowest then comparing to
other years.
3.2 SUGGESTIONS:-
Liquidity position of the company should be improved by sound financial planning.

The usage of long term liabilities of the firm should be reduced.
Improvement over proprietors lowest ratio.
The usage of Debt equity of the firm should be reduced.
3.3 CONCLUSION:This study briefly conducted in Indian overseas bank under the title of a study on
working capital management of Axis Bank India gives analysis and evaluation of the net
increases or decreases performance of the company. The important tool which have been
used are working capital management.
Based on the above tools and technique used, various information are found about
the position of the company. Based on the information some useful suggestions are given.
It is hoped that the company will take adequate steps as stated in suggestion to earn
maximum profit and will become one of the best banking industry.
CHAPTER -4
SCOPE WORK FOR FUTURE:The statistical tools used in this research analysis are statement of change in working
capital management, ratio analysis, fund flow statement and cash flow statement.
Here the further analysis can be done using the time series analysis and common size
statement for finding out the operating profit.
4.2 BIBILOGRPHY:-
BOOKS: Chandra Bose. D., Fundamentals of Financial Management, Second Edition,

PHI Learning Private Limited, New Delhi, 2010.
Sharma.R.K.Shasi, Gupta.K, Management accounting Kalyani publishers, New
Delhi.
Kothari C.R.Research Methodology Wishwa Prakasam New Delhi.
WEBSITES:www.google.com.
www.iob.in

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LIST OF TABLES

Statement changes in working capital

Fund from operation on the year of 2009

Fund from operation on the year of 2010

Fund from operation on the year of 2011

Fund from operation on the year of 2012

Fund from operation on the year of 2013

Cash flow statement on the year of 2009

Cash flow statement on the year of 2010

Cash flow statement on the year of 2011

Cash flow statement on the year of 2012

2.5.11 Cash flow statement on the year of 2013

Absolute liquidity ratio

Debt equity ratio

DATA ANALYSIS AND INTERPRETATION

Capital work in progress

Other liabilities & provision

Net working capital(CA-

TABLE: 2.5.2 FUND FROM OPERATION 2010

Selling and admin Expenses

Net Profit for the year

Equity share capital

Earning per shares

INTERPRETATION :The table shows that

TABLE: 2.5.3 FUND FROM OPERATION 2011

Selling and admin Expenses

Net Profit for the year

Equity share capital

Earning per shares

TABLE :2.5.4 FUND FROM OPERATION 2012

Selling and admin Expenses

Net Profit for the year

Equity share capital

Earning per shares

TABLE: 2.5.5 FUND FROM OPERATION 2013

Selling and admin Expenses

Net Profit for the year

Equity share capital

Earning per shares

TABLE :2.5.6 FUND FROM OPERATION 2014

Selling and admin Expenses

Net Profit for the year

Equity share capital

Earning per shares

TABLE :2.5.7 CASH FLOW STATEMENT 2010

Net profit before Tax

Net cash from operating Activities

Net cash (used in)/from investing Activities (60)

Closing cash &cash Equivalents

TABLE :2.5.8 CASH FLOW STATEMENT 2011

Net profit before Tax

Net cash from operating Activities

Net cash (used in)/from investing Activities (114.04)

Closing cash &cash Equivalents

TABLE :2.5.9 CASH FLOW STATEMENT 2012

Net profit before Tax

Net cash from operating Activities

Net cash (used in)/from investing Activities (125.45)

Closing cash &cash Equivalents

TABLE :2.5.10 CASH FLOW STATEMENT 2013

Net profit before Tax

Net cash from operating Activities

Net cash (used in)/from investing Activities (90.07)

Closing cash &cash Equivalents