Jagjit Singh MBA GLOBAL Roll No. 5756

8/3/2019 Jagjit Singh MBA GLOBAL Roll No. 5756

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Assignment on Financial Analysis of

ICICI

(Industrial Credit and Investment Corporation of India )

Submitted to: Submitted By:

Dr. Gurdip Batra Jagjit Singh

MBA GLOBAL 3rd

SEM

Roll No. 5756


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1.ICICI Bank

Vision and Mission of ICICI Bank Ltd.

Vision of ICICI Bank


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Mission

We will leverage our people, technology, speed and financial capital to:

Be the banker of first choice for our customers by delivering high

quality, world-class products and services.

Expand the frontiers of our business globally.

Play a proactive role in the full realization of Indias potential.

Maintain a healthy financial profile and diversify our earnings across

businesses and geographies.

Maintain high standards of governance and ethics.

Contribute positively to the various countries and markets in which

we operate.

Create value for our stakeholders.


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ICICI BANK

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion

(US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$

1,155 million) for the year ended March 31, 2011. The Bank has a network of

2,533 branches and 6,810 ATMs in India, and has a presence in 19 countries,

including India.

ICICI Bank offers a wide range of banking products and financial services to

corporate and retail customers through a variety of delivery channels and through

its specialised subsidiaries in the areas of investment banking, life and non-life

insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada,

branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and

Dubai International Finance Centre and representative offices in United Arab

Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our

UK subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange (NYSE).


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Corporate Profile

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion

(US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$

1,155 million) for the year ended March 31, 2011. The Bank has a network of

2,533 branches and about 6,810 ATMs in India, and has a presence in 19 countries,

including India. ICICI Bank offers a wide range of banking products and financial

services to corporate and retail customers through a variety of delivery channels

and through its specialised subsidiaries in the areas of investment banking, life and

non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada,

branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and

Dubai International Finance Centre and representative offices in United Arab

Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our

UK subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange (NYSE).


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Board of Directors

Board Members

Mr. K. V. Kamath, Chairman

Mr. Sridar Iyengar

Mr. Homi R. Khusrokhan

Mr. Arvind Kumar

Mr. M.S. Ramachandran

Dr. Tushaar Shah

Mr. V. Sridar

Ms. Chanda Kochhar,

Managing Director & CEO

Mr. N. S. Kannan,

Executive Director & CFO

Mr. K. Ramkumar,

Executive Director

Mr. Rajiv Sabharwal,

Executive Director


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Services Provided by ICICI

Online Services

ICICI Bankprovides money transfer services under different names ofe - Transfer,Cheque

Transfer,Power Transfer, Net Express and Card Transfer. Each of these services vary

according to the procedure to be followed and the transfer period. These services are designed

according to convenience of different group of customers. There are also similarities in some of

the features of various services. The table given below explains some of the common features of

different services.

e-Transfer - With e-Transfer, debit in yourlocal bank accountin USA and withdraw from a

bank account in over 30 banks in India as aDemand Draft.

Cheque Transfer - Money transfer with this methods is faster compared to that of

traditionalmailing mode to India. You have to post a printed form from ICICI website along

with cheque to a local P.O. Box. Money will be transferred within 1-7 days on the receipts of

cheque by the bank. All the advantages of online money transfer is available with this method

such as online tracking, free money transfer to ICICI Bank account, best exchange

rates etc.

Power Transfer - Money transfer is possible with this method with in 48-96 hrs. This is awire

transferfacility with options for multiple currency debit.

Net Express - You can transfer money to India from your internet bank account. This facility

is available in U.K., Singapore, France and Germany.

Card Transfer - In this methods you can debit using yourCredit Card. (Master Card). Money

is transferred within 3 working days. This mode also has the advantage of using the credit

period. A benefit offered by the card issuer.
http://www.sendmoneyindia.org/best-way-to-send-money-online.phphttp://www.sendmoneyindia.org/best-way-to-send-money-online.phphttp://www.sendmoneyindia.org/http://www.sendmoneyindia.org/http://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_ach.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_ach.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_ach.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_webcheque.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_webcheque.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_webcheque.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_webcheque.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_webwire.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_webwire.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_webwire.htmhttp://www.sendmoneyindia.org/how-to-open-bank-account.phphttp://www.sendmoneyindia.org/how-to-open-bank-account.phphttp://www.sendmoneyindia.org/how-to-open-bank-account.phphttp://www.sendmoneyindia.org/demand-draft.phphttp://www.sendmoneyindia.org/demand-draft.phphttp://www.sendmoneyindia.org/demand-draft.phphttp://www.sendmoneyindia.org/sending-money-through-mail.phphttp://www.sendmoneyindia.org/sending-money-through-mail.phphttp://www.sendmoneyindia.org/sending-money-through-mail.phphttp://www.sendmoneyindia.org/wire-transfer.phphttp://www.sendmoneyindia.org/wire-transfer.phphttp://www.sendmoneyindia.org/wire-transfer.phphttp://www.sendmoneyindia.org/wire-transfer.phphttp://www.sendmoneyindia.org/what-is-web-banking.phphttp://www.sendmoneyindia.org/what-is-web-banking.phphttp://www.sendmoneyindia.org/what-is-web-banking.phphttp://www.sendmoneyindia.org/credit-cards.phphttp://www.sendmoneyindia.org/credit-cards.phphttp://www.sendmoneyindia.org/credit-cards.phphttp://www.sendmoneyindia.org/credit-cards.phphttp://www.sendmoneyindia.org/what-is-web-banking.phphttp://www.sendmoneyindia.org/wire-transfer.phphttp://www.sendmoneyindia.org/wire-transfer.phphttp://www.sendmoneyindia.org/sending-money-through-mail.phphttp://www.sendmoneyindia.org/demand-draft.phphttp://www.sendmoneyindia.org/how-to-open-bank-account.phphttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_webwire.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_webcheque.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_webcheque.htmhttp://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/moneytransfers_USA_ach.htmhttp://www.sendmoneyindia.org/http://www.sendmoneyindia.org/best-way-to-send-money-online.php


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Me-NRI, NRI-Direct - Those are specially designedonline money transfer servicesoffered

to Gulf NRIs.ICICI Bankin alliance withMe-Bank in UAE (Me-NRI) and with Commercial

Bank in Qatar (NRI-Direct) offers specialized money transfer services to residents ofUAE &

Qatar respectively.

ICICI Bank Remittance Card : In 2007 ICICI Bank introduced standaloneremittance

cardbased transfer system. NRIs can charge these card at thier own ease using bank accounts

and credit cards. Beneficiary can use the card over ICICI bank affiliated ATMs to withdraw

amounts upto 50000 at a time. The card is re-usable and faster than other methods.

Features Services

Completely online - no paper work required. e-Transfer, Net Express,Card Transfer

Free money transfer in to ICICI bank accountsacross India.

e-Transfer, Net Express, Cheque Transfer,Power Transfer.

Money transfers above $1000 or equivalent into

30 other banks in India are free; for lesser

amounts nominal fee is charged.

For all the online money transfer services.

Online tracking of transactions. For all the online money transfer services.

Best Exchange Rate For all the online money transfer services.

Issuing DD for non-ICICI bank beneficiariesaround 1750 locations in India.

e- Transfer, Power Transfer

Money transfer period of these services vary as follows

e-Transfer - within 5-7 working days

Cheque Transfer - 1-7working days

Power Transfer - 48-96hrs.Card Transfer - 3working days

Offline Services
http://www.sendmoneyindia.org/http://www.sendmoneyindia.org/http://www.sendmoneyindia.org/http://www.sendmoneyindia.org/


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Branch Remittance -Money transfer to Indiacan be made through ICICI Bank overseas

brancheslocated in Canada, Britain and U. K.. Instant money transfer can be done through

these branches for the customers and non customers of ICICI Bank at these regions.

ICICI - Well Fargo Services - ICICI Bank and Wells Fargo USA offer this money transfer

service after an alliance agreement.Money can be sent to India from a Well FragoBranch or

ATM centre in USA. Transfer occurs in 24hrs.

Insta Transfer - This service is made available in Gulf Countries by ICICI Bank. Your ICICI

bank account can be credited instantly approaching the partnering exchange houses or banks.

Speed Transfer - This is a fast money transfer service with turnaround time of 24 hrs. through

partner exchange banks in different countries.

Demand Draft- An instant DD across the counter in INR available at the partner exchange

banks of ICICI Bank which is payable in different locations of ICICI bank.

Home Point - This service is available only in Canada. You can transfer within 2hrs from any

of the partner banks in Canada.

Cheques- Foreign Currency Cheques can be deposited in ICICI Bank and credit is usually

available with in 8 days.

Wire Transfer- Here you can remit money from your local bank to anyICICI bank

account by giving themwire transfer instructions. Money usually transferred within 24-48

hrs.

POSB in Singapore - This facility is offered by ICICI Bank association with DBS Bank

Singapore. You can directly give money transfer instructions at any of the POSB centers in

Singapore.
http://www.sendmoneyindia.org/http://www.sendmoneyindia.org/http://www.sendmoneyindia.org/http://www.sendmoneyindia.org/wells-fargo-services.phphttp://www.sendmoneyindia.org/wells-fargo-services.phphttp://www.sendmoneyindia.org/wells-fargo-services.phphttp://www.sendmoneyindia.org/demand-draft.phphttp://www.sendmoneyindia.org/demand-draft.phphttp://www.sendmoneyindia.org/cheques.phphttp://www.sendmoneyindia.org/cheques.phphttp://www.sendmoneyindia.org/wire-transfer.phphttp://www.sendmoneyindia.org/wire-transfer.phphttp://www.sendmoneyindia.org/how-wiretransfer-works.phphttp://www.sendmoneyindia.org/how-wiretransfer-works.phphttp://www.sendmoneyindia.org/how-wiretransfer-works.phphttp://www.sendmoneyindia.org/how-wiretransfer-works.phphttp://www.sendmoneyindia.org/wire-transfer.phphttp://www.sendmoneyindia.org/cheques.phphttp://www.sendmoneyindia.org/demand-draft.phphttp://www.sendmoneyindia.org/wells-fargo-services.phphttp://www.sendmoneyindia.org/


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ICICI Bank

Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 25,974.05 25,706.93 31,092.55 30,788.34 22,994.29

Other Income 7,108.91 7,292.43 8,117.76 8,878.85 6,962.95

Total Income 33,082.96 32,999.36 39,210.31 39,667.19 29,957.24

Expenditure

Interest expended 16,957.15 17,592.57 22,725.93 23,484.24 16,358.50

Employee Cost 2,816.93 1,925.79 1,971.70 2,078.90 1,616.75

Selling and Admin Expenses 3,785.13 6,056.48 5,977.72 5,834.95 4,900.67

Depreciation 562.44 619.50 678.60 578.35 544.78

Miscellaneous Expenses 3,809.93 2,780.03 4,098.22 3,533.03 3,426.32

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 8,594.16 10,221.99 10,795.14 10,855.18 8,849.86

Provisions & Contingencies 2,380.27 1,159.81 1,931.10 1,170.05 1,638.66Total Expenses 27,931.58 28,974.37 35,452.17 35,509.47 26,847.02

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 5,151.38 4,024.98 3,758.13 4,157.73 3,110.22

Extraordionary Items -2.17 0.00 -0.58 0.00 0.00

Profit brought forward 3,464.38 2,809.65 2,436.32 998.27 293.44

Total 8,613.59 6,834.63 6,193.87 5,156.00 3,403.66

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 1,612.58 1,337.95 1,224.58 1,227.70 901.17Corporate Dividend Tax 202.28 164.04 151.21 149.67 153.10

Per share data (annualised)

Earning Per Share (Rs) 44.73 36.10 33.76 37.37 34.59

Equity Dividend (%) 140.00 120.00 110.00 110.00 100.00

Book Value (Rs) 478.31 463.01 444.94 417.64 270.37

Appropriations


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Transfer to Statutory Reserves 1,780.29 1,867.22 2,008.42 1,342.31 1,351.12

Transfer to Other Reserves 0.26 1.04 0.01 0.01 0.00

Proposed Dividend/Transfer toGovt

1,814.86 1,501.99 1,375.79 1,377.37 1,054.27

Balance c/f to Balance Sheet 5,018.18 3,464.38 2,809.65 2,436.32 998.27

Total 8,613.59 6,834.63 6,193.87 5,156.01 3,403.66

Ratios

Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Per share ratios

Adjusted EPS (Rs) 44.37 34.90 33.60 36.78 33.30

Adjusted cash EPS (Rs) 49.25 40.45 39.70 41.97 39.36

Reported EPS (Rs) 44.73 36.10 33.76 37.37 34.59

Reported cash EPS (Rs) 49.61 41.66 39.85 42.56 40.64

Dividend per share 14.00 12.00 11.00 11.00 10.00

Operating profit per share (Rs) 64.08 49.80 48.58 51.29 42.19

Book value (excl rev res) per share (Rs) 478.31 463.01 444.94 417.64 270.37

Book value (incl rev res) per share (Rs.) 478.31 463.01 444.94 417.64 270.37

Net operating income per share (Rs) 281.04 293.74 343.59 354.71 316.45

Free reserves per share (Rs) 358.12 356.94 351.04 346.21 199.52

Profitability ratios

Operating margin (%) 22.80 16.95 14.13 14.45 13.33

Gross profit margin (%) 21.06 15.06 12.36 12.99 11.41


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Net profit margin (%) 15.91 12.17 9.74 10.51 10.81

Adjusted cash margin (%) 17.52 13.64 11.45 11.81 12.30

Adjusted return on net worth (%) 9.27 7.53 7.55 8.80 12.31

Reported return on net worth (%) 9.35 7.79 7.58 8.94 12.79

Return on long term funds (%) 42.97 44.72 56.72 62.34 82.46

Leverage ratios

Long term debt / Equity - - 0.01 0.01 0.01

Total debt/equity 4.10 3.91 4.42 5.27 9.50

Owners fund as % of total source 19.62 20.35 18.46 15.95 9.52

Fixed assets turnover ratio 3.55 4.60 5.14 5.61 4.52

Liquidity ratios

Current ratio 1.73 1.94 0.78 0.72 0.61

Current ratio (inc. st loans) 0.11 0.13 0.13 0.10 0.08

Quick ratio 15.86 14.70 5.94 6.42 6.04

Inventory turnover ratio - - - - -

Payout ratios

Dividend payout ratio (net profit) 35.23 37.31 36.60 33.12 33.89

Dividend payout ratio (cash profit) 31.76 32.33 31.00 29.08 28.84

Earning retention ratio 64.49 61.40 63.23 66.35 64.80

Cash earnings retention ratio 68.01 66.70 68.87 70.51 70.22


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Coverage ratios

Adjusted cash flow time total debt 39.77 44.79 49.41 52.34 65.12

Financial charges coverage ratio 0.43 0.33 0.25 1.25 1.25

Fin. charges cov.ratio (post tax) 1.34 1.26 1.20 1.20 1.22

Component ratios

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

Selling cost Component 0.94 0.72 1.74 4.43 6.12

Exports as percent of total sales - - - - -

Import comp. in raw mat. consumed - - - - -

Long term assets / total Assets 0.83 0.80 0.75 0.78 0.80

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


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FINANCIAL ANALYSIS

Financial analysis enables us to understand and assess the financial position of a

business organization. Ratio analysis is one of the most important techniques used

for effective financial analysis. A Ratio is used as a yard stick for evaluating the

financial performance.

According to Webster a ratio shows the relationship between two or more things.

The relationship between two accounting figures, expressed mathematically is

known as financial ratio. A ratio is used as an index or yardstick for evaluating

financial position and performance of an enterprise.

The following types of ratios are used

Liquidity Ratios

Leverage RatiosActivity Ratios

Profitability Ratios

1.LIQUIDITY RATIOS

A class of financial metrics that is used to determine a companys ability to pay off

its shirt-terms debts obligations. Generally, the higher the value of the ratio, the

larger the margin of safety that he company possesses to cover short- term debts.

Common liquidity ratios include the current ratio, the quick ratio and operating

cash flow ratio. Different analysts will calculate only the sum of the cash and

equivalents divided by current liabilities because they feel that they are the most

liquid assets, and would be the most likely to be used to cover short- term debts is

of utmost importance when creditors are seeking payment.


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Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to

determine whether the company will be able to continue as going concern.

CURRENT RATIO

Meaning:

This ratio compares the current assests with the current liabilities. It is also

known as working capital ratio or solvency ratio. It is expressed in the form

of pure ratio.

E.g. 2:1

Formula:

Current Ratio = Current Assets / Current Liabilities

=3212.96/15501.18

=.020

Significance:

0.51

0.62

0.610.72

0.78

Current Ratio

2005 2006 2007


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The current assests of a firm represents those assets which can be, in the

ordinary course of business, converted into cash within a short period time,

normally not exceeding one year. The current liabilities defined as liabilities

which are short term maturing obligations to be met, as originally

contemplated, with in a year. Current ratio (CR) is the ratio of total currentassets (CA) to total current liabilities (CL).

Current assets include cash and bank balances; inventory of raw materials,

semifinished and finished goods; marketable securities; debtors (net of

provision for bad and doubtful debts); bills receivable; and prepaid expenses.

Current liabilities consist of trade creditors, bills payable, bank credit,

provision for taxation, dividends payable and outstanding expenses. This ratio

measures the liquidity of the current assets and the ability of a company to

meet its short-term debt obligation. CR measures the ability of the company to

meet its CL, i.e., CA gets converted into cash in the operating cycle of the firm

and provides the funds needed to pay for CL. The higher the current ratio, the

greater the short-term solvency. This compares assets, which will become

liquid within approximately twelve months with liabilities, which will be due for

payment in the same period and is intended to indicate whether there are

sufficient short-term assets to meet the short- term liabilities. Recommended

current ratio is 2: 1. Any ratio below indicates that the entity may face liquidity

problem but also Ratio over 2: 1 as above indicates over trading, that is the

entity is under utilizing its current assets.

LIQUID RATIO:

Meaning:

Liquid ratio is also known as acid test ratio or quick ratio. Liquid ratio compare

the quick assets with the quick liabilities. It is expressed in the form of pure

ratio. E.g. 1:1. The term quick assets refer to current assets, which can be

converted into, cash immediately or at a short notice without diminution of

value.

Formula:

Liquid ratio = Quick Assets / Current Liabilities

= 181205.60+7114.12+38597.83/15501.18

=14.63


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Liquid ratio for 2010 is 14.63

Significance:

Quick Ratio (QR) is the ratio between quick current assets (QA) and CL. QA

refers to those current assets that can be converted into cash immediately

without any value strength. QA includes cash and bank balances, short-term

marketable securities, and sundry debtors. Inventory and prepaid expenses are

excluded since these cannot be

turned into cash as and when required. QR indicates the extent to which a

company can pay its current liabilities without relying

on the sale of inventory. This is a fairly stringent measure of liquidity because

it is based on those current assets, which are highly liquid. Inventories are

excluded from the numerator of this ratio because they are deemed the least

liquid component of current assets. Generally, a quick ratio of 1:1 is considered

good. One drawback of the quick ratio is that it ignores the timing of receipts

and payments.

4.98

6.646.04

6.42

5.94

Quick Ratio

2005 2006 2007


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EARNING PER SAHRE

Formula:

Earning per share = NPAT / Number of equity share

36.10

28.5534.5937.37

33.78

EPS

2005 2006 2007

2005 2006 2007 2008 2009 2010

NPAT 2,007.28 2,532.95 2,995.00 4,092.12 3,740.62 4024.98

No. of

Equityshare

73.67 88.98 89.93 111.27 111.27

111.72

Earning

per share27.22 28.55 34.59 37.37 33.78

36.10


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INTERPRETATION:-

This yield can be used by a Share holder while making decisions about

the investment on comparison to other alternative investments.

The E.P.S. when compared to the current market price of the share ,gives

measure of the rate of yield .

The E.P.S. of the company is currently decreasing because of the

decreasing in the net worth during recession.

The earning per share of the IDEA CELLULAR LIMITED is continuously

increased in the year from 2005-06 to 2006-07 because of highly

increased in the net profit.

Then it was also increased in the year 2007-08 because of the increased

in the net profit and relatively less percentage increase in the no.of equity

share.

The EPS is continuously increase which express that the company is

effectively uses its capital and also efficiently uses the loan funds instead

of the owners fund. It was good for the share holders of the company

and they get the satisfactory return.


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Return on capital employed

Return on capital employed = NPAT / Capital employed * 100

2005 2006 2007 2008 2009 2010

NPAT 2,007.28 2,532.95 2,995.00 4,092.12 3,740.62 4024.98

Capital

employed736.75 889.83 899.34 1,112.68 1,113.29

1114.89

Return

on

capital

employed

2.72 2.85 3.33 3.68 3.363.61

Return on capital employed (for 2010 is 22%)

Figure 1: Return on capital employed

Interpretation:

This is another ratio to judge the efficiency and effectiveness of the

company like profitability ratio.

17%

18%

21%23%

21%

Return on capital emplyed

2005 2006 2007


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The income from services is greaterly increased compared with the

previous year and the total capital employed includes capital and

reserves & surplus. Due to huge increase in the net profit the capital

employed is also increased along with income from services. Both areeffected in the increment of the ratio of current year.

Proprietary ratio

Formula :

Proprietary ratio = Proprietary fund / Total fund

Proprietary ratio

2005 2006 2007 2008 2009 2010

Proprietar

y fund

12,549.9

5

22,205.9

9

24,313.2

6

46,470.2

1

49,533.0

2

49883.2

3

Total fund17,460.8

9

24,577.1

6

42,258.7

3

60,507.3

0

51,920.3

9

52352.3

0

Proprietar

y ratio0.72 0.90 0.58 0.77 0.95

0.95


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Interpretation:

The proprietary ratio establishes the relationship between shareholders

funds to total assets. It determines the long-term solvency of the firm.

This ratio indicates the extent to which the assets of the company can be

lost without affecting the interest of the company.

The share holders funds include capital and reserves and surplus. The

reserves and surplus is increased due to the increase in balance in profit

and loss account, which is caused by the increase of income from

services.

Total assets, includes fixed and current assets. The fixed assets are

reduced because of the depreciation and there are no major increments

in the fixed assets. The current assets are increased compared with the

year 2007. Total assets are also increased than precious year, which

resulted an increase in the ratio than older.

0.72

0.9

0.58

0.77

0.95

Proprietary ratio

2005 2006 2007


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SOLVENCY RATIO

Solvency ratio=Total liabilities/Total assets

Interpretation:

Generally the best solvency ratio to any firm is 1:1 . For ICICI it is almost

exceeding from 1 every year.

GROSS PROFIT RATIO

Gross profit ratio= gross profit/net sales

Interpretation:

This gross profit reveals the operating efficiency of the company. Gross profit ratio

may be indicated to what extent the selling prices of goods per unit may be reducedwithout incurring losses on operations. It reflects efficiency with which a firm

produces its products. As the gross profit is found by deducting cost of goods sold

from net sales, higher the gross profit better it is. There is no standard GP ratio for

evaluation. It may vary from business to business The gross profit ratio for the year

2011 is 21.06 in crores. That means the bank is in a better position.

TOTAL DEBTS TO EQUITY RATIO

Total debts to assets ratio = total liabilities/ total assets

Interpretation:


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Provides information about the company's ability to absorb asset reductions arising

from losses without jeopardizing the interest of creditors.

In the year 20011 the ratio is 4.10

NET PROFIT RATIO

Net profit ratio = net profit/net sales *100

Interpretation:

NP ratio is used to measure the overall profitability and hence it is very useful to

proprietors.

The ratio is very useful as if the net profit is not sufficient, the firm shall not be

able to achieve a satisfactory return on its investment.

This ratio also indicates the firm's capacity to face adverse economic conditions

such as price competition, low demand, etc. Obviously, higher the ratio the better

is the profitability. But while interpreting the ratio it should be kept in mind thatthe performance of profits also be seen in relation to investments or capital of the

firm and not only in relation to sales. The net profit ratio is 15.81 % for the year

2011.


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Bibliography

1.www.icici.com2.www.moneycontrol.com

3.Analysis information retrieved from

http://faculty.philau.edu/lermackh/financial_analysis.htm#Financia

l%20Ratio%20Analysis%20%28Abridged%29

4.Stice & Stice
http://www.icici.com/http://www.icici.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://faculty.philau.edu/lermackh/financial_analysis.htm#Financial%20Ratio%20Analysis%20%28Abridged%29http://faculty.philau.edu/lermackh/financial_analysis.htm#Financial%20Ratio%20Analysis%20%28Abridged%29http://faculty.philau.edu/lermackh/financial_analysis.htm#Financial%20Ratio%20Analysis%20%28Abridged%29http://faculty.philau.edu/lermackh/financial_analysis.htm#Financial%20Ratio%20Analysis%20%28Abridged%29http://faculty.philau.edu/lermackh/financial_analysis.htm#Financial%20Ratio%20Analysis%20%28Abridged%29http://www.moneycontrol.com/http://www.icici.com/


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Jagjit Singh MBA GLOBAL Roll No. 5756