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1 Introduction
These section efforts have been made to cover all relevant aspects of the financial performance
of ATLAC. Overtime comparison and Common Size analysis are carried out with the view to
extract concrete conclusion to describe financial standing and performance of the Firm.
Short-term advances have shown a significant change. Where as total advances show a total
change of only 1.70%. This is very significant to note that major decrease has occurred in longterm performing and non-performing advances.
On the liability side the total current liability has shown change of about 4%. The main reason
for which is increase in current deposits, which are about 6%. The long-term liability of the
organization is also decreased by 2%. The main reason for this is that fixed deposits of
organization are decreased by 2%, which shows that there is a slight change in the organizations
position by decrease in fixed deposits.
2011-12
2012-13
2013-14
10.85
8.26
9.86
0.79
1.23
0.87
lending to F.Is
4.67
3.76
3.73
Investment
21.82
19.21
21.97
Advances-Performing
55.32
59.75
55.20
Advances Non-Performing
1.12
1.53
1.84
Fixed Assets
3.19
2.97
3.54
0.33
0.1
Other Assets
2.24
3.0
2.78
Total Assets
100
100
100
B/Payables
1.14
0.85
0.83
Borrowings ST
11.14
7.59
5.67
Deposits - Current
75.74
79.85
79.40
Sub-ordinated loans
1.08
1.98
1.93
0.42
Other Liabilities
2.50
2.49
2.34
Total Liability
92.02
92.76
90.17
Share Capital
1.52
1.67
1.80
Reserves
1.93
2.56
3.05
Accumulated Losses/Profits
2.95
2.74
3.58
Liabilities
Equity
Minority Interest
Surplus on revaluation
1.58
0.27
1.40
Total Equity
7.98
7.24
9.83
Assets in 2013
3.54
56.86
9.86
3.73
21.97
Cash
lending to F.Is
Investment
Advances
Fixed Assets
Like gross profit the net profit margin before tax has also decreased with 37% . The tax expanse
is decreased about 29% because of the decrease in profit. Profit brought forward from previous
year is reduced by 10%.
The common size analysis of the ATLAC is clearly showing that the Firm has no improvement in its
performance. The organization shows low profit in last two years which is a negative sign. Employees
which they can work more effectively and efficiently increasing
2011-12
2012-13
2013-14
Mark up revenue
100
100
100
Mark up expense
41.26
46.34
46.27
Gross profit
58.74
53.66
53.73
15.63
15.60
20.72
43.1
38.06
33.1
21.9
20.57
19.17
Total Income
65.0
58.62
52.16
33.31
31.9
29.10
31.68
26.72
23.06
Taxation
11.21
10.67
7.95
20.47
15.10
16.05
30.28
30.15
27.28
0.44
0.48
0.41
50.9
46.68
42.80
2011-12
2012-13
2013-14
100
87
106.31
100
178.88
129.2
lending to F.Is
100
92.3
93.47
Investment
100
100.64
117.78
Advances-Performing
100
123.34
116.82
Advances Non-Performing
100
155.07
191.05
Fixed Assets
100
106.51
129.59
Other Assets
100
144.76
144.58
Total Assets
100
116.87
116.87
B/Payables
100
84.45
84.67
Borrowings ST
100
74.78
59.47
Deposits - Current
100
122.50
122.5
Sub-ordinated loans
100
200
200
Other Liabilities
100
130.58
113.08
Total Liability
100
115.13
114.54
Share Capital
100
137.5
137.50
Reserves
100
184.75
184.75
Accumulated Losses/Profits
100
141.74
141.75
Surplus on revaluation
100
102.95
102.95
100
103.40
143.64
Liabilities
Shareholder's Equity
2011-12
2012-13
2013-14
Mark up revenue
100
126.5
148.26
Mark up expense
100
142.07
166.29
Gross profit
100
115.54
135.60
100
126.08
196.43
100
111.71
29.77
Total Income
100
114.09
119.0
100
121.13
129.53
100
106.68
107.91
Taxation
100
120.40
105.20
100
99.10
109.40
forward
100
125.93
133.58
100
116.0
124.66
Profitability ratios
Profitability ratios are the financial statement ratios which focus on how well a business is performing in
terms of profit.
Net interest margin (NIM) is a measure of the difference between the interest income generated by Firms
or other financial institutions and the amount of interest paid out to their lenders, relative to the amount of
their assets. It is similar to the gross margin of non-financial companies
Income
2011-12
16,936,187/41,045,543
0.41
2012-13
24,061,790/51,919,229
0.46
2013-14
28,163,787/60,857,035
0.46
Interpretation.
This ratio examines how successful a firm's investment decisions are compared to its debt
situations. The interest margin ratio in 2013-14 is deceases as compared to 2011-12 favourable
for the Firm, because investment decisions are well planed.
Earning assets include loan, Lease, investment securities and money market assets. This ratio
show that the contribution of these assets to total assets.
Earning Assets/Total
Years
2011-12
2012-13
2013-14
Assets
241,828,285/530,283,956
321,069,710/605,539,341
292,931,035/619,744,051
0.45
0.53
0.47
Interpretation.
The ratio of earning to total assets in 2013 is 0.47 and in 2012-11 0.53 and 0.45.As return on total Assets
is Increased in 2013 as compare to 2011 which is favourable for Firm. But compared to 2012 return on
total assets decreases which is not favourable for Firm because in 2011 earn assets low return.
An indicator of how profitable a company is relative to its earning assets. ROEA gives an idea as to how
efficient management is at using its assets to generate earnings.
Years
2011-12
2012-13
2013-14
Net income/average
earning assets
8,402590/241,828,285
8,333,120/281,448,997
9,192,687/307,000,372
0.034
0.030
0.030
Interpretation.
Return on earning assets is decreases in 2013 as compared to previous year, due to inefficient
management of ATLAC, showing unfavorable trend.
The cost/income ratio is an efficiency measure similar to operating margin. Unlike the operating margin,
lower is better. The cost income ratio is most commonly used in the financial sector
Years
2011-12
2012-13
2013-14
1.62
1.98
1.92
Interpretation.
Operating Cost to income ratio is decrease as compared to previous year which shows Firm efficiently
managed his non interest cost. This is favourable for Firm because that effect on net income with
positively. But compared as 2011 operating cost increase.
1.92
1.62
1.5
Operating Cost to incom
Ratio
1
0.5
0
2011
2012
2013
YEARS
2011
2012
2013
EQUITY/TOTAL ASSETS
42,421,404/16,936,187
43,862,759/24061,790
60,936,723/28163,787
0.079
0.072
0.098
Interpretation.
This ratio shows the ownership of the Firm. In 2013 it is 0.098 while in 2011 it is only 0.79 which shows
in 2013 Firm equity are increases.
0.1
0.08
0.079
0.072
0.06
Equity To Total Assets
0.04
0.02
0
2011
2012
2013