CHAPTER-IV

DATA ANALYSIS & INTERPRITATION

Mergerof Sbi bank ltd: 2017-2018.
Balance Sheet Of Sbi bank ltd
Absolute % of Change
FY2017-2018 FY 2016-2017 increase or
decrease
Sources Of Funds
Total Share Capital 274.24 274.18 0.06 0.02188343
Equity Share Capital 274.24 274.18 0.06 0.02188343
Reserves 16,823.27 17,960.64 1862.63 15.4502027
Networth 17,127.51 18,234.82 1862.69 15.2265314
Secured Loans 2,389.35 2,177.34 242.01 14.2702227
Unsecured Loans 2,483.43 2,318.34 168.12 7.25984089
Total Debt 4,872.78 4,462.68 413.1 9.1895453
Total Liabilities 21,970.29 19,697.50 2272.79 14.5384693
Application Of Funds
Gross Block 25,004.31 21,320.16 3684.18 17.2801536
Less: Accum. Depreciation 9,162.47 8,197.80 934.67 14.4017736
Net Block 18,871.84 16,152.36 2749.48 20.9526335
Capital Work in Progress 2,041.63 3,505.37 -1763.7 -41.7570756
Investments 5,391.67 5,138.72 282.95 5.53856935
Inventories 2,368.36 2,350.47 17.89 0.76145437
Sundry Debtors 1,281.02 1,017.24 263.78 25.9312504
Cash and Bank Balance 277.50 172.66 164.84 94.5184354
Total Current Assets 3,926.88 3,513.37 416.51 14.865161
Loans and Advances 2,521.99 2,161.94 360.05 16.6540237
Fixed Deposits 0.00 14.71 -14.71 -130
Total CA, Loans & Advances 6,448.87 5,672.31 776.56 16.690366
Current Liabilities 6,813.76 6,642.06 168.7 2.53987468
Provisions 972.96 1,069.20 -96.24 -9.00145233
Total CL & Provisions 7,783.72 7,714.26 72.46 0.93966485
Net Current Assets -1,334.85 -2,038.95 704.1 -34.53248
Total Assets 21,970.29 19,697.50 2272.79 14.5384693
Contingent Liabilities 6,257.18 2,599.53 3657.62 170.703157
Book Value (Rs) 623.45 555.65 67.8 15.2019257

Assessment Of Capital Employed

Absolute increase or decrease

67.8 0.06 1862.63 1862.69 FY2017-2018 FY 2016-
242.01 2017
704.1
3657.62 168.12
72.46 Sources Of Funds
413.1
-96.24 2272.79
2272.79
168.7
Total Share Capital 274.24
776.56 274.18
3684.18
-14.71
416.51
360.05 Equity Share Capital
2749.48
164.84 17.89 274.24 274.18
263.78 934.67
282.95 -1763.7

Interpretation:

By Analyzing the Trends of the company from 2017-2018 is in the good Position and The
result of which both the assets and liabilities is given i.e. In the assets the Fixed assets
was Gradually increased and in the year 2017 is was increased to more than 14.57% and
in same case of liabilities also in the year2017 it has a change of more than 0.93%in the
long term liabilities

Hence the company is planning for the short term funding and long term liabilities
for the Stability of the industry year by year.
Merger of Sbi bank ltd: 2016-2017
Balance Sheet Of Sbi bank ltd

Absolute % of
FY 2016-2017 FY 2015-16 increase or Change
decrease
Sources Of Funds
Total Share Capital 274.18 274.07 0.14 0.04016573
Equity Share Capital 274.18 274.07 0.14 0.04016573
Reserves 17,960.64 15,585.75 2374.89 18.869674
Networth 18,234.82 15,859.82 2375 18.4683767
Secured Loans 2,177.34 2,015.12 165.25 6.72186632
Unsecured Loans 2,318.34 1,796.04 519.3 28.9166129
Total Debt 4,462.68 3,808.16 654.55 17.1882262
Total Liabilities 19,697.50 16,667.95 3029.55 18.1759005
Application Of Funds
Gross Block 21,320.16 19,017.48 2305.68 15.1559167
Less: Accum. Depreciation 8,197.80 7,379.66 818.17 14.0864186
Net Block 16,152.36 14,634.82 1787.54 15.7852429
Capital Work in Progress 3,505.37 3,163.02 342.35 13.8235168
Investments 5,138.72 3,788.77 1619.95 34.8384832
Inventories 2,350.47 2,035.94 317.53 18.4488836
Sundry Debtors 1,017.24 765.96 251.28 32.8058906
Cash and Bank Balance 172.66 176.48 -33.82 -19.1636446
Total Current Assets 3,513.37 2,978.38 531.99 17.8617235
Loans and Advances 2,161.94 1,514.73 650.21 43.0139874
Fixed Deposits 14.71 14.71 0 0
Total CA, Loans & 1470.49 26.0003732
5,672.31 4,501.82
Advances
Current Liabilities 6,642.06 5,599.74 1342.32 18.6167217
Provisions 1,069.20 820.74 248.46 30.2726808
Total CL & Provisions 7,714.26 6,420.48 1590.78 20.1341344
Net Current Assets -2,038.95 -1,918.66 -150.29 6.26947974
Total Assets 19,697.50 16,667.95 3029.55 18.1759005
Contingent Liabilities 2,599.53 5,892.68 -3293.2 -55.8854375
Book Value (Rs) 555.65 469.22 86.43 18.4199312

469.22
274.07 FY 2015-16
5,892.68 274.07
16,667.95 15,585.75 FY 2016-2017

-1,918.66
15,859.82 Sources Of Funds
6,420.48
820.74 2,015.12
5,599.74 1,796.04 Total Share Capital 274.18
4,501.82
14.71 3,808.16
1,514.73
2,978.38 Equity Share Capital
765.96
176.48 274.18
16,667.95
2,035.94 Reserves 17,960.64
3,788.77
3,163.02 19,017.48
7,379.66 Networth 18,234.82
14,634.82

Interpretation:

By Analyzing the Trends of the company from 2016-2017 is in the good Position and The
result of which both the assets and liabilities is given i.e. In the assets the Fixed assets
was Gradually increased and in the year 2015 is was increased to more than 14% and in
same case of liabilities also in the year2016 it has a change of more than 16%in the long
term liabilities.

Hence the company is planning for the short term funding and long term liabilities
for the Stability of the industry year by year.
Mergerof Sbi bank ltd: 2015-16
Balance Sheet Of Sbi bank ltd

Absolute % of
FY 2015-16 FY 2014-15 increase or Change
decrease
Sources Of Funds
Total Share Capital 274.07 274.04 0.03 0.01394731

Equity Share Capital 274.07 274.04 0.03 0.01394731

Reserves 15,585.75 13,392.00 2193.75 21.1399885

Networth 15,859.82 13,666.04 2193.78 20.5678959

-777.67 -
Secured Loans 2,015.12 2,789.76 27.8758746

Unsecured Loans 1,796.04 1,354.84 441.2 32.5647312

-336.47 -
Total Debt 3,808.16 4,174.60 8.14827438

Total Liabilities 16,667.95 17,813.64 1857.31 15.5403764

Application Of Funds

Gross Block 19,017.48 17,942.27 1372.21 5.97588822

Less: Accum. Depreciation 7,379.66 6,542.02 837.64 15.8039963

Net Block 14,634.82 14,400.25 234.57 2.05758646

Capital Work in Progress 3,163.02 1,135.32 2057.7 186.163283

Investments 3,788.77 3,730.32 58.45 1.5668897

Inventories 2,035.94 1,956.52 79.42 4.05924805

Sundry Debtors 765.96 602.29 163.67 27.1746169

Cash and Bank Balance 176.48 174.47 32.01 22.1868492

Total Current Assets 2,978.38 2,703.28 275.1 13.1765263

Loans and Advances 1,514.73 1,216.71 295.02 24.2473556

Fixed Deposits 14.71 0.32 14.39 3559.375

Total CA, Loans & Advances 4,501.82 3,920.31 581.51 17.8332657

Current Liabilities 5,599.74 4,772.07 827.67 17.3440457

Provisions 820.74 573.49 247.25 43.1462191

Total CL & Provisions 6,420.48 5,345.56 1374.92 20.1386512

Net Current Assets -1,918.66 -1,425.25 -493.41 34.6191896

Total Assets 16,667.95 17,813.64 1857.31 15.5403764

Contingent Liabilities 5,892.68 4,220.47 1672.21 39.6217166

Book Value (Rs) 469.22 389.21 80.01 20.5570258

274.07
5,892.68 469.22
FY 2015-16
274.07 15,585.75
Sources Of Funds
16,667.95
-1,918.66 15,859.82 Total Share Capital
6,420.48
2,015.12
820.74
5,599.74 1,796.04 Equity Share Capital
4,501.82
14.71 3,808.16
1,514.73 16,667.95 Reserves
2,978.38
176.48
Networth
765.96
3,788.77
3,163.02
19,017.48 Secured Loans
2,035.94 14,634.82 7,379.66

Interpretation:

By Analyzing the Trends of the company from 2015-16 is in the good Position and The
result of which both the assets and liabilities is given i.e. In the assets the Fixed assets
was Gradually increased and in the year 2015 is was increased to more than 18% and in
same case of liabilities also in the year2015 it has a change of more than 14%in the long
term liabilities
Hence the company is planning for the short term funding and long term liabilities
for the Stability of the industry year by year.
Mergerof Sbi bank ltd: 2016-17
Balance Sheet Of Sbi bank ltd

Absolute % of
FY 2016-17 FY2014-2015 increase or Change
decrease
Sources Of Funds
Total Share Capital 274.04 154.49 179.55 150.160161

Equity Share Capital 274.04 154.49 179.55 150.160161

Reserves 13,392.00 4,482.17 5912.83 161.851982

Networth 13,666.04 4,608.65 6057.39 161.435236

Secured Loans 2,789.76 854.19 1935.57 226.597157

Unsecured Loans 1,354.84 750.33 604.51 80.5658843

Total Debt 4,174.60 1,604.52 2540.08 188.307781

Total Liabilities 17,813.64 6,216.17 8597.47 168.374936

Application Of Funds

Gross Block 17,942.27 8,078.17 9864.16 152.138926

Less: Accum. Depreciation 6,542.02 3,166.46 3405.56 138.579736

Net Block 14,400.25 4,941.68 6458.57 160.695836

Capital Work in Progress 1,135.32 259.37 845.95 326.185685

Investments 3,730.32 1,669.55 2060.77 153.432661

Inventories 1,956.52 821.70 1464.82 168.136365

Sundry Debtors 602.29 218.83 386.46 179.057592

Cash and Bank Balance 174.47 83.73 60.74 72.5426968

Total Current Assets 2,703.28 1,151.26 1882.02 171.123056

Loans and Advances 1,216.71 374.92 841.79 224.525232

Fixed Deposits 0.32 0.00 0.32

Total CA, Loans & Advances 3,920.31 1,496.18 2424.16 162.021581

Current Liabilities 4,772.07 1,992.60 2779.47 169.489615

Provisions 573.49 161.01 415.48 256.182846

Total CL & Provisions 5,345.56 2,183.61 3191.95 178.216929

Net Current Assets -1,425.25 -657.43 -767.82 146.791471

Total Assets 17,813.64 6,216.17 8597.47 168.374936

Contingent Liabilities 4,220.47 420.26 3800.21 904.25216

Book Value (Rs) 389.21 370.05 19.16 5.17767869

274.04
389.21 FY 2016-17
4,220.47 274.04 13,392.00 Sources Of Funds
17,813.64
-1,425.25 13,666.04 Total Share Capital
5,345.56 2,789.76
573.49
4,772.07 1,354.84 Equity Share Capital
3,920.31 4,174.60
0.32
1,216.71 17,813.64 Reserves
2,703.28
1,956.52
174.47
Networth
602.29
3,730.32
1,135.32 17,942.27 Secured Loans
14,400.25 6,542.02

Interpretation:

By Analyzing the Trends of the company from 2017-18is in the good Position and The
result of which both the assets and liabilities is given i.e. In the assets the Fixed assets
was Gradually increased and in the year 2014 is was increased to more than 22% and in
same case of liabilities also in the year2015 it has a change of more than 15%in the long
term liabilities
Hence the company is planning for the short term funding and long term liabilities
for the Stability of the industry year by year.
Merger and acquisition ratios of Sbi bank ltd

Merger and acquistion ratios measure a company’s ability to generate earnings relative to
sales, assets and equity. These ratios assess the ability of a company to generate earnings,
profits and cash flows relative to relative to some metric, often the amount of money
invested. They highlight how effectively the merger and acquistion of a company is being
managed.

Common examples of merger and acquistion ratios include return on sales, total liabilities,
return on equity, return on capital employed (ROCE), cash return on capital invested
(CROCI), advancementmargin and networthmargin. All of these ratios indicate how well a
company is performing at generating profits or revenues relative to a certain metric.

Different merger and acquistion ratios provide different useful insights into the financial
health and performance of a company. For example, advancementand networthratios tell how
well the company is managing its expenses. Return on capital employed (ROCE) tells how
well the company is using capital employed to generate returns. Total liabilities tells whether
the company is generating enough profits for its shareholders.

For most of these ratios, a higher value is desirable. A higher value means that the company
is doing well and it is good at generating profits, revenues and cash flows. Merger and
acquistion ratios are of little value in isolation. They give meaningful information only when
they are analyzed in comparison to competitors or compared to the ratios in previous periods.
Therefore, trend analysis and industry analysis is required to draw meaningful conclusions
about the merger and acquistion of a company.

Some background knowledge of the nature of business of a company is necessary when

analyzing merger and acquistion ratios. For example sales of some businesses are seasonal
and they experience seasonality in their operations. The retail industry is example of such
businesses. The revenues of retail industry are usually very high in the fourth quarter due to
Christmas. Therefore, it will not be useful to compare the merger and acquistion ratios of this
quarter with the merger and acquistion ratios of earlier quarters. For meaningful conclusions,
the merger and acquistion ratios of this quarter should be compared to the merger and
acquistion ratios of similar quarters in the previous years.
Merger and acquisition Ratios:
Merger and acquistion ratios measure the company's use of its assets and control of its
expenses to generate an acceptable rate of return

 NetworthRatio

Net Profit:
Net Sales

 Total debt Ratio:

Total debt Expenses

Net Sales

 Merger and acquistion

=(130-Total debt Ratio %)

 Total liabilities

Net Profit
Total Investment

 AdvancementRatio

Advancement
Net Sales

 Total debt Margins

total debtIncome
Net Sales

 Return on Assets

Net Income
Averege Total Assets
Net worth ratio:
Net worth\Net sales

Year Net profit Net sales Networthratio

2017-2018 2174.47 20279.80 13.5744169
2016-2017 2655.43 20174.94 16.1620217
2015-2016 2446.19 18270.69 16.3886022
2014-2015 1704.23 16205.64 13.6335626
2013-2014 1393.24 7042.82 18.5227593

25000

20000

15000
Networthratio
10000 Net sales
Net profit
5000

Interpretation:
The networthof the company is in the decreasing position because of the expenses in the
industry are increased the networthwill be in decreasing position in the yare 2017-2018.
TOTAL DEBTRATIO:

Total debt expenses\Net sales

Year Total debt Expenses Net sales Total debt ratio

2017-2018 16354.92 20279.80 80.64
2016-2017 18617.65 20174.94 77.42
2015-2016 17174.45 18270.69 77.41
2014-2015 13718.55 16205.64 81.16
2013-2014 5069.77 7042.82 71.98

40000
35000
30000
25000
20000 Total debt ratio

15000 Net sales

10000 Total debt Expenses
5000
0

Interpretation:
Thetotal debtratio is a financial term defined as a company's total debt expenses as a
percentage of revenue. This financial ratio is most commonly used for industries which
require a large percentage of revenues to maintain operations in the year 2015-2018.
Merger and acquistion = (130-Total debt ratio %)
Year Total debt ratio Merger and acquisition(130-
OR)
2017-2018 80.64 19.36
2016-2017 77.42 22.58
2015-2016 77.41 22.59
2014-2015 81.16 18.84
2013-2014 71.98 28.02

100%
90%
80%
70%
60%
Merger and
50%
acquisition(130-OR)
40%
30% Total debt ratio
20%
10%
0%

Interpretation:
Merger and acquisition is the primary goal of all business ventures. Without merger and
acquisition the business will not survive in the long run. So measuring current and past
merger and acquistion and projecting future merger and acquistion is very important and it is
high in Sbi bank ltd.
Total liabilities:

Year Total liabilities Total investment ROI

2017-2018 2174.47 5391.67 0.39

2016-2017 2655.43 5138.72 0.51
2015-2016 2446.19 3788.77 0.46
2014-2015 1704.23 3730.32 0.37
2013-2014 1393.24 1669.55 0.65

8000
7000
6000
5000
4000 ROI

3000 Total investment

2000 Total liabilities

1000
0

Interpretation:

A performance measure used to evaluate the efficiency of an investment or to compare the

efficiency of a number of different investments. To calculate ROI, the benefit (return) of an
investment is divided by the cost of the investment has been increased to 2015-2018.
Advancement ratio:
Advancement\Net sales

Year Advancement Net sales Advancement

2017-2018 2775.51 20279.80 16.68
2016-2017 3825.40 20174.94 18.96
2015-2016 3351.36 18270.69 18.34
2014-2015 1786.19 16205.64 16.52
2013-2014 1888.16 7042.82 22.55

25000

20000

15000
Advancement
10000 Net sales
Advancement
5000

Interpretation:
Advancement ratio may be indicated to what extent the selling prices of goods per unit may
be reduced without incurring losses on operations. It reflects efficiency with which a firm
produces its products. As the advancements found by deducting cost of goods sold from net
sales, higher the advancement better its yield. By comparing by 2017-2018 has been
decreased.
Total debt margin:
Total debt income\Net sales

Total debt income Net sales Total debt margin

Year
2017-2018 3817.90 20279.80 18.82
2016-2017 4675.48 20174.94 23.17
2015-2016 4135.91 18270.69 22.47
2014-2015 2553.20 16205.64 19.33
2013-2014 1977.64 7042.82 28.08

25000

20000

15000
Total debt margin
10000 Net sales
Total debt income
5000

Interpretation:
The two basic components for the calculation of total debt ratio are total debt cost (cost of
goods sold plus total debt expenses) and net sales. Total debt expenses normally include (a)
administrative and office expenses and (b) selling and distribution expenses. in the year 2017
the net sales has been increased.
Investments and net block:
Year Investments and total Assets ROA

net block
2017-2018 2174.47 21970.29 9.76
2016-2017 2655.43 19697.50 16.48
2015-2016 2446.19 16667.95 17.67
2014-2015 1704.23 17813.64 9.42
2013-2014 1393.24 6216.17 17.59

25000

20000

15000
ROA
10000 total Assets
Investments and net block
5000

Interpretation:
An indicator of how profitable a company is relative to its total assets. ROA gives an idea as
to how efficient management is at using its assets to generate earnings. Calculated by
dividing a company's annual earnings by its total assets, ROA is displayed as a percentage
and it was not improved in the year 2017.