RESEARCH PROJECT REPORT

ON

“A study on Fіnancіal Statеmеnt Analysіs of

Kotak Mahіndra Bank”

Towards partial fulfilment of

Master of Business Administration (MBA)
School of Management, Babu Banarasi Das University, Lucknow

Presented By:
Vіvеk Mіshra
Roll No- 1220672384
MBA 4th Sеmеstеr
 INTRODUCTION

Financial statement analysis can be undertaken either by the management of the firm or by the outside
parties. The nature of analysis differs depending upon the purpose of the analysis. The analyst is able to
say how well the firm could utilize the resource of the society in generating goods and services. Turnover
ratios are the best tools in deciding these aspects.
Hence it is overall responsibility of the management to see that the resources of the firm is used most
efficiently and effectively and that the firm’s financial position is good. Financial statement analysis does
indicate what can be expected in future from the firm.
Meaning of Financial Statement
Financial statements refer to such statements which contains financial information about an enterprise.
They report profitability and the financial position of the business at the end of accounting period. The
team financial statement includes at least two statements which the accountant prepares at the end of an
accounting period. The two statements are: -
The Balance Sheet
Profit And Loss Account
 COMPANY PROFILE

Kotak Mahіndra Bank іs an Іndіan prіvatе sеctor bank hеadquartеrеd іn Mumbaі, Maharashtra,
Іndіa. Іn Fеbruary 2003, Rеsеrvе Bank of Іndіa (RBІ) gavе thе lіcеncе to Kotak Mahіndra Fіnancе
Ltd., thе group's flagshіp company, to carry on bankіng busіnеss. Іt offеrs a wіdе rangе of bankіng
products and fіnancіal sеrvіcеs for corporatе and rеtaіl customеrs through a varіеty of dеlіvеry
channеls and spеcіalіzеd subsіdіarіеs іn thе arеas of pеrsonal fіnancе, іnvеstmеnt bankіng, lіfе
іnsurancе, and wеalth managеmеnt. Kotak Mahіndra Bank Tеrrіеst has a nеtwork of 1,369
branchеs across 689 locatіons and 2,163 ATMs іn thе country (as of 31 March, 2017).Іn 2016, іt
was thе fourth largеst prіvatе bank іn Іndіa by markеt capіtalіzatіon.
Hіstory
Kotak Mahіndra group, еstablіshеd іn 1985 by Uday Kotak, іs an Іndіan fіnancіal sеrvіcеs
conglomеratе. Іn Fеbruary 2003, Kotak Mahіndra Fіnancе Ltd. (KMFL), thе Group’s flagshіp
company, rеcеіvеd a bankіng lіcеncе from thе Rеsеrvе Bank of Іndіa (RBІ). Wіth thіs, KMFL
bеcamе thе fіrst non-bankіng fіnancе company іn Іndіa to bе convеrtеd іnto a bank – Kotak
Mahіndra Bank Lіmіtеd (KMBL).
Іn a study by Brand Fіnancе Bankіng 500, publіshеd іn Fеbruary 2014 by thе Bankеr magazіnе
(from Thе Fіnancіal Tіmеs Stablе), KMBL was rankеd 245th among thе world’s top 500 banks
wіth brand valuatіon of around half a bіllіon dollars ($481 mіllіon) and brand ratіng of AA+.
 OBJECTIVE OF STUDY

• To study thе fіnancіal analysіs of Kotak Mahіndra Bank.

• To ascertaіn thе overall profіtabіlіty of the company.

• To analyze trends on the basіs of ratіos for consecutіvе 4 years.

• To gaіn іnsіght as to how a fіnancіal statement can bе usе to predіct futurе.

• To analyzе workіng capіtal funds wіth thе hеlp of ratіos

 RESEARCH METHODOLOGY
RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure .A research design is purely and simply the
framework of plan for a study that guides the collection and analysis of data. It is a blue print that is followed in
completing a study. Keeping in view the objectives of the project
Research design used in the report is Descriptive. Type of research conducted is analytical in nature.

Descriptive Research:
This is kind of research structure which is concerned with describing the characteristics of the problem. In this
way the main purpose of such a research design is to present a descriptive picture about the marketing problem on
the basis of actual facts. For this it is important to obtain the complete and actual information about the subjects.

TYPE OF DATA AND DATA COLLECTION

Secondary data:
Secondary data are those which have already been collected by someone else and have already been passed
through the statistical process.
The Annual reports of kotak mahindra bank, Lucknow was the main source of data in the study, annual reports
from 2019 to 2023 were collected and referred.
All the data has been collected from internal source that includes:-
Books
Websites
Official Files
Company’s Manual related to Working Capital
Techniques of Analysis:-
The data are analyzed through ratio analysis common size balance sheet, comparative balance sheet and fund flow
analysis.
 DATA ANALYSIS AND INTERPRETATION

YEAR CURRENT ASSETS CURRENT LIABILITIES RATIO

2018-19 8439.39 14362.33 0.59

2019-20 10466.63 14466.89 0.73

2020-21 10021.39 13638.30 0.73

2021-22 13730.10 16732.40 0.82

2022-23 23957.90 17842.70 1.34

Interpretation: From the above table we can indicate that the current assets are very less
compared to current liability of the company. The company doesn’t have enough current assets in
meeting their liabilities. So, the company can’t meet immediate emergencies.
The company needs to increase current assets in order to meet its short-term obligation. We can
conclude that the ratio isn’t favorable as the current asset is less than the current liabilities.
 YEAR QUICK ASSETS CURRENT LIABILITIES RATIO

2018-19 8382.53 14362.33 0.58

2019-20 10404.48 14466.89 0.72

2020-21 9994.15 13638.30 0.73

2021-22 13695.70 16732.40 0.82

2022-23 22866.90 17842.70 1.28

Interpretation: As per as quick ratio is concern whether a firm has enough short-term assets to
cover its immediate liabilities without selling inventory. Here, Open wings foundation review that
in 2019-20 increase their assets and then after very small percentage increase. That point of Time it
has not enough asset to cover its liabilities. Company ideal ratio is 1.5 so is below the ratio. This is
not good for company should be improving that point.
 YEAR CREDIT SALES AVG. DEBTORS RATI DAYs

2018-19 25761.11 2097.49 12.28 30

2019-20 34048.32 1515.76 22.46 16

2020-21 35609.54 2327.52 15.30 24

2021-22 38015.80 2240.39 16.97 23

2022-23 41,603.80 2134.50 18.45 18

Interpretation: Higher turnover signifies speedy and effective collection. Lower turnover
indicates sluggish and inefficient collection leading to the doubts that receivables might contain
significant doubtful debts. Receivables collection period is expressed in number of days. Here the
company in 1st year 1month to collection & after decline then after increase. Company does not
maintain lower collection period.
 YEAR PAT – NET WORTH RATIO

PREFERENCE

DIVIDEND

2018-19 6244.19 20241.49 30.85

2019-20 7743.84 27643.97 28.01

2020-21 9426.15 36737.18 25.66

2021-22 7716.90 44111.60 17.49

2022-23 5266.00 49429.60 10.65

Interpretation: As per as net worth ratio states the return that shareholders could
receive on their investment in a company. Here the company continuous declines year
by year this not well for company. But actually is right because bank rate is low like
12 % is good for investors.
 YEAR PAT NO. OF EQUITY RATIO

SHARES

2018-19 6244.19 189.79 32.90

2019-20 7743.84 189.82 40.79

2020-21 9426.15 379.75 24.82

2021-22 7716.90 379.75 20.32

2022-23 5266.00 379.75 13.87

Interpretation: As per as EPS ratio is concern the

portion of a company's profit allocated to each
outstanding share of common stock. Earnings per
share serve as an indicator of a company’s
profitability. Here the company shows high
profitability so it is good for company as well as
investor.
 YEAR PBIT CAPITAL EMPLOYED RATIO

2018-19 9450.20 56009.10 16.87

2019-20 11194.72 41776.10 26.80

2020-21 8747.65 35357.53 24.74

2021-22 7599.87 26811.63 28.35

2022-23 7514.80 11565.07 0.64

Interpretation: It is expressed as a percentage and can be very

revealing about the industry a company operates in, the skills of the
management and occasionally the general business climate. Here,
the company continuous increases efficiency. It is good for the
company.
 FINDINGS

The current ratio of the company for the year 2023-19 is 0.59, 2019-20 is 0.73, 2020-21 is 0.73,
2021-22 is 0.82 and 2022-23 is 1.34, the current ratio has increased by 23.73% in the year 2019-20,
and in 2020-21 it remains constant. There was increase positive value is found by 12.33% in year
2021-22 and increased by 63.41% in the year 2022-23.
The quick ratio of the company for the year 2023-19 is 0.58, 2019-20 is 0.72, 2020-21 is 0.72,
2021-22 is 0.82, and 2022-23 is 1.28. The quick ratio has increased by 24.14 % in the year 2019-20
and the year 2020-21 is increased by 1.39% there is increased positive value is found by 12.33% for
the year 2021-22 and increased by 56.10% in the year 2022-23.
The debtors turnover ratio of the company for the year 2023-19 is 12.28 times, 2019-20 is 22.46
times, 2020-21 is 15.30 times, 2021-22 is 16.97 times, and 2022-23 is 18.45 times the debtors
turnover ratio has increased by 82.90% in the year 2019-20, and in 2020-21 it decreased by 31.88%.
There was increase positive value is found by 10.92% in year 2021-22 and increased by 8.72% in
the year 2022-23.
The return on net worth of the company for the year 2023-19 is 30.85, 2019-20 is 28.01, and 2020-
21 is 25.66, 2021-22 is 17.49, and 2022-23 is 10.65. The return on net worth has decreased by
9.21% in the year 2019-20, and decreased by 8.39% in the year 2020-21 and again decreased by
31.84% in the year 2021-22 and again decreased by 39.11% in the year.
 LIMITATION

• The study is limited to ICICI Bank Limited and the finding need not apply in similar sense to

other firms.

• The inferences that have been framed only on the basis of financial statement.

• Based on the limited information it is not possible to arrive at a proper conclusion.

• Limitations of Financial analysis.

.
 SUGGESTION AND RECOMMENDATION

The company should maintain an adequate cash and bank balance in order to meet the emergency
requirements.
The current ratio of the company has decreasing year to year. The company must utilize their
current asset accurately.
The sales of the company go on increasing better to increase sales for more profit in future.
Net profit of the company has decreased when compare to last year. Better to decrease the
unnecessary expenses of the company to increase the profit.
The Net working capital of the company has negative. Shows excess of current liabilities over
current assets. It must positive for future years.
Loans of the company increasing in year 2023 compare to previous year, it shows that the profit
was distributed to the interest, better it should not the same for next year.
Better to maintain the same amount of fixed assets in future for full utilize fixed assets.
Allowing debt for long period by company shows it is not strict in its debt collection. Better it
should collect its debt as early.
 CONCLUSION

The company has been doing their activity effectively and efficiently. The company has a sound

long term solvency. The company can rise from the financial crush it is in right now by taking

proper steps to increase its sales of production and to minimize cost by maximize utilization of

resources. A already known there is a thin line between profitability and liquidity and the company

lost two years made a profit has very low and another two making better profit. This shows the

company in a good position and the management of the company has much as better so that does

way maintain the market leadership.