FINDINGS

1. The dividend payout ratio net profit is constantly decreasing year by year. In the year
2011 it was 29.85 crores while in the year 2014 it has decreased to 24.20 crores, but it
has gradually decreased to 17.04 crores in 2012 and was constant during the year 2014
with 17.11 crores but again it is decreased to 15.66 in 2015. This shows that the
dividend payout ratio net profit has only decreased and it has never increased during
those years.

2. The cash profit dividend payout ratio is also decreasing year by year . In the year
2011 it was 26.47 crores and it has gradually decreased to 21.95 crores in 2012 and
again gradually decreases as it was decreased in the previous year , it has decreased to
15.87 crores in 2013 and stays constant with 15.85 crores in 2014 and again it has just
decreased to 14.54 crores in 2015. This shows that the cash profit dividend payout ratio
has only decreased and never increased during

3. The earning retention ratio was 70.11crores during the year 2011 and has increased
to 75.82 crores in 2012 and again gradually increases in the year 2013 with 82.97
crores and stays constant in the next year 82.80 and again it has just increased to 84.35
in 2015. This shows that earning retention ratio has increased year by year. The
increase in earning retention ratio is good for the bank

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4. The cash earning retention ratio is constantly increasing year by year .the cash
earning retention ratio was 73.49 crores in 2011. in the year 2012 it is increased to
84.13 crores and again it is increased in the next year as it is increased in the previous
year to 84.13 crores in 2013 and remains constant in the next year with 84.13 crores
in 2014 and in the year 2015 it is just increased to 85.47 crores .This shows that the
cash earning retention ratio is only increased and not decreased during these 5 years

5. The adjusted cash flow times is constantly decreasing year by year. The adjusted
cash flow times was 97.44 crores in 2011 and in the year 2012 it is just decreased to
91.38 crores . in the year 2013 it is gradually decreased to 69.74 crores but only from
2014 it has started increasing , it is increased to 74.82 crores in 2014 . in the year 2015
again it is just increased to 76.11crores.

6. The earning per share is constantly increasing year by year. The earning per share
was 13.37 crores in 2011 and in the year 2012 it is just increased to 16.74 crores . in
the year 2013 it is gradually increased to 27.46 crores . in the year 2014 it is increased
to 34.18 crores and again it is increased in 2015 as it was increased in previous year ,
it is increase to 34.18 crores by 2015 . this shows that the earning per share is only
increasing and has never decreased during those 5 years

7. The netcash from operating activities was -1124.99 crores in the year 2011 and the
bank was not in good position during that year. Later in the year 2012 there was some
improvement, like it is increased to 1956.28 crores and there were no big changes in
2012 as it is just decreased to 1930.64 crores but it is gradually increased to 5599.13 in
2014. In the year 2015 it is totally decreased to -505.97 crores. This shows that the
bank is facing problem in operating activities.

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8. The net cash from investing activities was -53.87 crores in 2011 and It is just
decreased to -151.33 crores in 2012. In the year 2013 it is again decreased to -214.32
crores and again it is decreased in the next year as it was decreased in previous year to
-314.76 crores in 2014. Only in the year 2015 it has increased to -200.43 crores and
this shows that there were no improvements during these 5 years.

9.The net cash from financing activities was 997.41 crores during the year 2011 and
was gradually decreased to 180.98 crores in 2012 and again it has decreased to -49.92
crores in 2013 but only in 2014 it is increased to 597.72 crores and again it has just
decreased to 497.26 crores . during the 5 years there were ups and downs in the net
cash from financing activities but at last it has only decreased from 997.41 to 497.26

10. The net cash and cash equivalents were increased and decreased in the last 5 years.
In the year 2011 it is -181.45 crores and it has increased to 2035.93 crores in 2012 and
it is just decreased to 1671.40 crores but in the next year 2014 it has gradually
increased to 5887.14 cores and finally it is gradually decreased to -213.24 crores in the
last year 2015. This shows that the bank was good in .the middle years and there were
no improvement during those 5 years

11. The opening cash and cash equivalents were 6571.97 crores in the year 2011 and it
is just decreased to 6390.51 crores in 2012. in the year 2013 it is increased to 8426.44
crores and again it is increased to 15147.84 crores but it is gradually increased to

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15984.93 crores in the year 2015. This shows that the opening cash and cash
equivalents has only increased during those 5 years.

12. The closing cash and cash equivalents was 6390.52 crores in 2011. And it is
increased to 8426.44 crores in 2012 and again in the year 2013 it is increased to
15147.84 crores. In the year 2014 it is gradually increased to 15984.93 crores and it is
just decreased to 15776.69 crores by the year 2015. This shows that the closing cash
and cash equivalents is only increased during these years.

SUGGESTIONS

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 1. The dividend payout ratio should be maintained as the shareholders would
prefer to invest only if the dividend payout increases.
2. The EPS is increasing for the bank on yearly basis. So, the Company should
maintain the EPS so that the holders are retained by the Company.
3. The adjusted cash flow is decreasing for the past few years and this cash flow
is considered as operating or working capital of any bank. But the cash flow is
neither stable nor increasing as it is fluctuating the adjusted cash flow should be
maintained and the cash flow should be planned in such a way that the cash
flow should increase on a yearly basis.
4. Net Cash is the cash that is reserved in the bank for any investing or financing
activities. The cash should be increasing in any business to maintain it sound
and healthy business. The Net cash should increase on a yearly basis and the net
cash is the life blood of any company or bank for diversification or expansion
of it respectively.
5. Opening cash and cash equivalent is the initial investment or opening balance
of any business. But in this case it is for bank, so as per that the opening cash is
increasing for business and this should be maintained as this will have a drastic
impact on the balance and the business should also keep up this performance to
improve in positive direction.
6. Closing cash and cash equivalent is the closing balance or net balance available
at the end of the year. The closing cash was increasing substantially for all the
years except for the year 2015 as the balance has pitched down this should be
maintained and focused for better closing balance at the end of each year. The
closing balance should be looked for positive increase as it decreased when
compared to other year.

CONCLUSION

The process of financial risk management is an ongoing one. Strategies need to be

implemented and refined as the market and requirements change. Refinements may
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reflect changing expectations about market rates, changes to the business environment,
or changing international political conditions, for example. In general, the process can
be summarized as follows:

Identify and prioritize key financial risks.

Determine an appropriate level of risk tolerance.

Implement risk management strategy in accordance with policy.

Measure, report, monitor, and refine as needed. Risk management needs to be looked
at as an organizational approach, as management of risks independently cannot have
the desired effect over the long term. In this project I have analyzed the risk
management process of Moxie IT India Pvt Ltd. It was found that Net and Gross NPA
of the bank is increasing which is not good for the bank. Thus we can say that
Business must improve its risk management strategies.

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