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TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB

TABLE OF CONTENTS
Sr.No. 1 2 TOPICS Acknowledgement PAGE NO. 03 04 05 06 07 08 09

Ch. No 01.
Introduction Vision statement Mission Statement Objectives Quality Policy

3 4

Ch. No 02.
Company Profile

Ch. No 03.
Share in Human & Social Welfare Branch Offices Ownership HR Department Recruitment Committee Administrative Department Accounts & Finance Department Internal Audit Department Production Department Marketing Department Imports/ Exports Department Production Department
11 12 13 16 17 18 19 20 21 22 23 26 36

5 6

Ch. No 04. Awards & Honours Ch. No 05. Total Quality Management Inventory System Group Insurance Ch. No 06. Financial Statements Ch. No 07. S.W.O.T. Analysis

37 38 44

47-47 48

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB

CHAPTER NO. 06

THREE YEARS RATIO ANALYSIS OF JULLUNDUR PVT.LTD.

Ratio analysis is a delicate tool which can be used in order to compare the performance of two or more than two companies which are working in the same industry or more probably they may be from the different industries. This is also helpful for every company in order to compare its own performance over the three years periods. This is an effective qualitative and quantitative tool, which shows the progress, trend, profitability, asset utilization, liquidity, activity of the companies under consideration. The limitation of Ratio Analysis is that it shows the guidelines only on the basis of past and historical data, which will predict about the future of the company. But it is the duty of the company management, how to use these indications in its future plans.
1. Net Profit Ratio The net profitability ratio shows the overall operational results of the company for the period under consideration. It calculated by dividing NET PROFITS with Sales Revenues of the period. FORMULA:-Net Profit Ratio= (Net Profits/Net Sales)*100
Na me of Ratio Formulas Calculations

2009
(10069005/15641832) *100 Net profit Ratio (Net Profits/Sales)* 100

2010
(4029277/18220175) *100

2011
(347973/20685011) *100

64.37228708

22.11437047

1.682247111

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB

GRAPH

Net profit Ratio (Net Profits/Sales)*100

80 60 40 20 0 (347973/20 685011)*1 00 (4029277/1 8220175)* 100 (10069005/ 15641832) *100 Net profit Ratio (Net Profits/Sales)*100

2009

2010

2011

INTERPRETATION:From the above table and diagram, we can see that Net Profit has decreased over the 3 years period. The reason is energy crisis, electricity break-down Or mis-management on the part of the bank.

2. Return on Assets: It shows the total profits earned with the help of total assets investments. It shows the total earnings which were earned with the help of total assets investments. ROA= (Net Profits/Total Assets)*100 TABLE
Name of Ratio

Formulas

Calculations

2009
(10069005/216669863)*1 00

2010
(4029277/229190273)*1 00

2011
(347973/280997531)*1 00

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB (Net Profits/Tot al Assets)*10 0

Retur n on Asset s

4.647164521

1.758048868

12.14508971

GRAPH

Return on Assets (Net Profits/Total Assets)*100

14 12 10 8 6 4 2 0

(347973/280 997531)*100

(4029277/22 9190273)*10 0

(10069005/2 16669863)*1 00

Return on Assets (Net Profits/Total Assets)*100

2009

2010

2011

INTERPRETATION;From the above table & Graph, We can see that the Return on Assets have increased over the three years period. The reason may be the effective and well co-ordinated asset utilization & asset management policy.

3. Du-Pont (Return on Asset)

This formula shows the combine net effect of two formulas as a whole i.e. The ratio of Net profit margin with that of the assets turnover ratio. ROA= (Margin * Turnover)*100 TABLE
Name of Ratio

Formulas

Calculations

2009

2010

2011

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB

64.372312*4064716521 22.114*1.758 Dppont

1.68224*12.14508971

(Margin*Turnover)*100

299.1487245

38.87814425

20.43095571

GRAPH

Dp-pont (Margin*Turnover)*100
20 15 10 5 0 2009 2010 2011 Dp-pont (Margin*Turnover)*100

INTERPRETATION: -From the above table and graph, again the combine effect of Margin & Turnover shows that the Company has increased its profitability over the Three year time period.

4. Operating Assets Turnover Ratio:This formula shows the relationship of that portion of assets which are being actively used in the generation of Sales Volume.

Op. Asset Turnover Ration = (Total Sales/ Op. Assets)*100

TABLE
Name of Ratio

Formulas

Calculations

2009

2010

2011

15641832/216669863 18220175/229190273 20685011/280997531

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB Op Asset (Sales/Op Turnover Assets)

0.076807322

0.079498029

0.073612786

GRAPH

Op Asset Turnover (Sales/Op Assets)*100

25 20 15 10 5 0 2009 2010 2011 Op Asset Turnover (Sales/Op Assets)*100

INTERPRETATIONS:From the above calculations, we can say that operating asset turnover ratio has improved over the last three years.

5. Working Capital:This formula shows the net effect of the difference between the total current assets & total current liabilities, which shows the liquidity of the company.

Working Capital = (TCA TCL )

TABLE
Name of Ratio Formulas Calculations

2009
195558941205773847 Working Capital TCA-TCL -10214906 201876397220284871

2010

2011
247463622263710835 -16247213

-18408474

GRAPH

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB

Working Capital TCA-TCL

0 19555894 120577384 7 20187639 722028487 1 -5000000 -10000000 -15000000 -20000000 24746362 226371083 5

Working Capital TCA-TCL

2009

2010

2011

INTREPRETATIONS:_ From the above calculations, we can see that from the year 2009 To 2011, the amount of net working capital has decreased, which shows that the liquidity of the company has decreased over the time, being a negative sign for the company.

6. Sales To Fixed Assets Ratio:This formula shows the relationships between the volumes of sales with that of its fixed assets investment. It shows that how much money was blocked in the business in order to increase the level of sales volumes. Sales To Fixed Assets = (Total Sales/ Total Fixed Assets)
TABLE
Name of Ratio Formulas

Calculations

2009

2010

2011

15641832/3427267 18220175/3534660 20685011/3597483 Sales to Fixed Assets Sales/Fixed Assets

4.563937388

5.749856497

5.749856497

GRAPH

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB

Sales to Fixed Assets Sales/Fixed Assets

8 6 4 2 0 15641832/ 3427267 18220175/ 3534660 20685011/ 3597483

Sales to Fixed Assets Sales/Fixed Assets

2009

2010

2011

INTERPRETATIONS:-

Over the three years i.e.(2009 To 2011), We can observe clearly, that the sales level has been nearly at the same level considerably over the three years periods in which the contribution of Fixed assets has remain constant in order to manitain the level of sales.

7. Return on Equity:This formula shows how much profits were earned with respect to investments made by the owners called internal equity or net worth. Return on Equity (ROE) = (Net Profits/ SHE) *100
TABLE
Name of Ratio

Formulas

Calculations

2009
10069005/6175943)*10 0 Retur n on Equity (Net Profits/Equity)*10 0

2010
(4029277/3668470)*10 0

2011
20685011/1077259 0

163.0359121

22.19352703

192.0152071

GRAPH

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB

Return on Equity (Net Profits/Equity)*100

250 200 150 100 50 0 10069005/61 75943)*100 (4029277/36 68470)*100 20685011/10 772590 Return on Equity (Net Profits/Equity)*100

2009

2010

2011

INTERPRETATIONS:The above calculations shows that gradually over the three years periods, i.e. from 2009 To 2011, the return on equity has increased, which may be due to increased sales level or the effective use of organizations resources.

8. Current Ratio:This formula is used in order to judge the liquidity position of the company. It shows the relationships of current assets of the company with its total current liabilities. Its answer must be greater than or equal to 2.00. Current Ration = Total Current Assets/ Total Current Liabilities
TABLE
Name of Ratio Formulas Calculations

2009
195558941205773847 Current Ratio TCA/TCL 0.95035858 201876397220284871

2010

2011
247463622263710835 0.938390044

0.916433326

Current Ratio TCA/TCL

0.96 0.95 0.94 0.93 0.92 0.91 0.9 0.89 195558941205773847 201876397220284871 247463622263710835

GRAPH

Current Ratio TCA/TCL

TAHIRA KAUSAR (

Roll No. 482 ),

2010

GCC, SAHIWAL
2011

2009

AN INTERNSHIP REPORT ON THE BANK OF PUNJAB

INTERPRETATIIONS:The last formula calculated is the most important one, i.e. Current Ratio. It shows the gradual decrease in the liquidity position of the company. It shows that the answers are below than 2.00, yet it can be observed that the management is showing serious efforts in order to consolidate it its liquidity position.

TAHIRA KAUSAR (

Roll No. 482 ),

GCC, SAHIWAL