GROUP 1

NAME

ROLL NUMBERS

SYNAICA AGUIAR ANTO LIBIN SHAUN DSOUSA GLENNA DSILVA ROYSTON LEWIS JULIANA MACWAN JOEL MONTERO BREEZY PEREIRA CRYSAN PEREIRA

8201 8202 8215 8211 8223 8226 8230 8239 8240

Canara Bank was founded by Shri Ammembal Subba Rao Pai, in July 1906,.Growth of Canara Bank was phenomenal, especially after nationalization in the year 1969, In June 2006, the Bank completed a century of operation in the Indian banking industry.. Today, Canara Bank occupies a premier position in the comity of Indian banks. With an unbroken record of profits since its inception, Canara Bank has several firsts to its credit. These include:

Launching of Inter-City ATM Network Obtaining ISO Certification for a Branch Issuing credit card for farmers

Meaning FORMULA:

Proprietary Ratio=Shareholders Funds x 100 Total Assets

2011 = 20039.82 x 100 336078.76 = 5.96%

2012 = 22689.96 x 100 374160.20 = 6.06%

REASON

Difference between the proprietors funds = 22689.96 2039.82 =2650.14 Therefore % increase = 2650.14 x 100 20039.82 = 13.22%

Difference between total assets = 374160.20 336078.76 = 38081.44 Therefore % increase = 38081.44 x 100 336078.76 = 11.33% REASON

Formula: ROI = PBIT (Profit before interest after tax) Capital employed ROI of Canara bank for the year 2012 is 15.91% & for the previous year 22.43% There is an increase in the ROI of the bank.

Definition of 'Dividend Payout Ratio' The percentage of earnings paid to shareholders in dividends. Calculated as

Dividend payout 2012 ratio 82.72

2011 85.91

FORMULA:

2012 RETURN ON CAPITAL 9.52 EMPLOYED

2011 8.62

Definition Of Gross Profit ratio Gross profit ratio is the ratio of gross profit to net sales expressed as a percentage. it expresses the relationship between gross profit and sales. Formula: Gross profit ratio =gross profit net sales x 100

Canara bank has total sales of Rs 5200000 and the sales return=20000 Rs; cost of goods sold is Rs 400000. Solution: Gross profit={(520000-20000)-400000} =100000. gross profit ratio=100000 x100 500000 =20% Comment: Gross profit ratio is indicated to what extent the selling prices of goods per unit may be reduced without incurring losses on operations as the gross profit is found by deducting cost of goods sold from net sales, higher the profit better it is. However the gross profit earned should be sufficient to recover all operating expense and to build up reserves after paying all fixed interest charges and expenses. Every year the gross profit changes due to increase or decrease in the ratio.

Current ratio may be defined as the relationship between current assets and current liabilities. FORMULA: Current Ratio= Current Assets / Current Liabilities Or Current Assets: Current Liabilities
2012 CURRENT RATIO 0.3 2011 0.4

Meaning Formula :2011 FIXED ASSET TURNOVER 1383.56 2012 29952.05

Observation :1) Net Sales increase by 33.76% 2) Fixed Assets decrease by 93.82% Reasons

Net Profit ratio is a test of profitability in Management Efficiency. It shows the relationship between Net Profitability to Sales. It depends upon the nature of the industry.

FORMULA :NET PROFIT RATIO (Before Tax) = NET PROFIT TOTAL FUNDS

YEAR

NET PROFIT BEFORE TAX

TOTAL FUNDS

NET PROFIT RATIO

2011
2012

5025.89
4082.72

25767.05
33778.22

0.2
0.12

Earnings per share is generally considered to be the single most important variable in determining a share's price. It is also a major component used to calculate the price-to-earnings valuation ratio. The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. FORMULA:NPAT- PREFERNCE DIVIDEND NO OF EQUITY SHARES
2012 74.10 2011 90.88

Meaning Formula:

Operating expense ratio = Operating Expense x 100 Net sales

2011 = 1622.60 x 100 7812.08 = 20.76%

2012 = 1780.33 x 100 8267.49 = 21.54% REASON

Difference between the operating expenses = 1780.33 1622.06 = 158.27

Therefore % increase = 158.27 x 100 1622.60 = 9.75%

Difference between the net sales = 8267.49 7812.08 =455.41

Therefore % increase = 455.41 x 100 7812.08 = 5.82% REASON

The total asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales. This ratio considers all assets, current and fixed. Those assets include fixed assets, like plant and equipment, as well as inventory, accounts receivable, as well as any other current assets.

FORMULA: Net Sales/Total Assets = # Times

Total asset turn over ratio 2o12 0.09 2011 0.08

Formula: BVPS = Equity share capital+ Reserves & surplus No. of Equity shares The Book value of the Canara bank in the year 2012 is 465.57 & for the previous year it is 405.00

Definition; Creditors turnover ratio (also known as Accounts payable turnover ratio )is calculated by taking the total purchases made and dividing it by the average accounts payables during the period. it is used to measure the rate at which a firm pays off its supplier. Formula : Creditors turnover ratio= credit purchases average trade creditors Accounts payable turnover(APT) ratio= cost of goods sold accounts payable Canara bank has total cost of production of Rs 260000 and total short term credits is 130000. Solution 260000 = 2 times . 130000

Creditors velocity = 365/creditors turnover ratio =365 2 =182.5 =183 days approximately. Comment: According to Creditors turnover ratio to calculate we know that lower the creditors turnover ratio better it is to meet the creditors quickly. Then to calculate the creditors velocity ratio is to know the payment policy .higher the ratio that is the bank is in a good position in the market and has a longer than usual time to pay its creditors.

Meaning Formula :-

Operating Profit --------------------- X 100 Net Sales

MARCH 2012 78.81%

MARCH 2011 76.15%

Observation :- 1) Operating Profit increase by 38.4% 2) Net Sales increase by 33.76% Reasons

Definition: This ratio relates the fixed interest charges to the income earned by the business. Formula : Interest Coverage Ratio = Net Profit before Interest and Tax / Fixed Interest Charges

2012 INTEREST COVERAGE RATIO 15.86 2011 16.39

Dividend per share (DPS) is the total dividends paid out over an entire year divided by the number of outstanding ordinary shares issued Dividends are a form of profit distribution to the shareholder. Having a growing dividend per share can be a sign that the company's management believes that the growth can be sustained

FORMULA:TOTAL EQUITY DIVIDEND DECLARED NO. OF EQUITY SHARES

2012 11

2011 11

Definition of 'Debt-To-Capital Ratio' A measurement of a company's financial leverage, calculated as the company's debt divided by its total capital. Calculated as:

2012 TOTAL DEBT TO OWNERS FUND 15.86

2011 16.39

Earning retention ratio signifies the ability to keep profits and pay the surplus to the shareholders. It is a way to calculate what percentage of earnings is returned to shareholders.

This trend will show what general direction the company is taking with regards to dividend.
EARNING RETENTION RATIO = NET INCOME - DIVIDEND NET INCOME

2011 EARNING RETENTION RATIO 85.91

2012 82.72

EARNING RETENTION RATIO formula means this company shares are profitable for long term investment vice versa. The ratio of the year 2011 i.e. 85.91 is higher as compared to the ratio of 2012 i.e82.72.

 After

the analysis of financial statements, the banks status is better, because the net working capital of the company has increased from the last years position