The document analyzes the financial statements of Jammu and Kashmir Bank for the years 2011-2012 to 2015-2016. It includes comparative balance sheets and profit and loss statements, common size statements, ratio analysis, cash flow analysis and objectives of analysis such as assessing profitability, managerial efficiency, and solvency. Key findings are the bank's profits declined in 2014-2015 and 2015-2016 possibly due to floods, and demonetization initially increased losses which then reduced due to large deposits and minimal withdrawals. Overall the bank's financial health has been fluctuating.

1. MEANING OF FINANCIAL STATEMENTS
• Summarised statements of
accounting data prepared at the end
of the accounting process.
• The main purpose of the financial
statements is to reveal:-
1.The financial position
2.The Result of its recent
activities
3.An analysis of what has been
done with earnings.
ANALYSING THE
TRANSACTION
JOUNALISING
LEDGER POSTING
PREPARING THE
TRIAL BALANCE
PREPARING THE
FINANCIAL
STATEMENTS

3. MEANING OF FINANCIAL STATEMENT ANALYSIS
• Systematic process
of critical
examination of the
financial
information
contained in the
financial statements
to understand and
make decisions
regarding the
operations of the
enterprise.
Division
Establishing
relationships
Interpretation
Understand
the
:- working of
the business
:- financial
position of
the business

4. PARTIES INTERESTED IN FINANCIAL STATEMENT
ANALYSIS
• Overall efficiency of the business.
• Decision making, controlling & self
evaluation.
MANAGEMENT
• To look for a job with good and fair
incentives and better working
conditions.
EMPLOYEES
• To assess the profitability and growth
prospects of the business.
SHAREHOLDERS

5. • Determine whether the firm is
profitable enough and safe for
their investments.
POTENTIAL
INVESTORS
• Assess the short term solvency of
the firm before providing credit to
the enterprise.
CREDITORS
• Assess the short-term and long-
term solvency of the enterprise to
ensure payment of loans and debts
and the repayment of principal
amount.
BANKERS

6. J&K BANK
• The Jammu and Kashmir Bank was founded on
1 October, 1938 .
• Parvez Ahmed is the new Chairman & Chief
Executive Officer of Jammu & Kashmir Bank.
• Private sector bank deposit government holding 53
percent of the equity.
• Sole banker and lender of the last resort to the
government of J&K.
• Listed on NSE and BSE.
• It is the sponsoring bank of J&K Grameen Bank.

7. TWO FOLD MISSION
To provide the people of J&K international
quality financial service and solutions.
To be a super-specialist bank in the rest of
the country.
NETWORK
865 Computerized
Bank Branches
1035 ATMs
Corporate
Headquarters in
SRINAGAR

8. PHILOSOPHY OF LOGO
• The three coloured squares
represent the regions of
Jammu, Kashmir and
Ladakh.
• Falcon with outstretched
wings symbolise Power
and Unity.

9. ANALYSIS OF FINANCIAL STATEMENTS
OF J&K BANK - TECHNIQUES
TOOLS OF
FINANCIAL
STATEMENT
ANALYSIS
COMPARITIVE
STATEMENTS
COMMON-
SIZE
STATEMENTS
RATIO
ANALYSIS
CASH FLOW
STATEMENT

10. COMPARITIVE BALANCE SHEET OF J&K BANK AS ON
31st MARCH 2015 and 2016

11. COMPARITIVE STATEMENT OF PROFIT & LOSS OF J&K BANK AS ON
31st MARCH 2015 and 2016

12. COMMON SIZE BALANCE SHEET OF J&K BANK AS ON
31st MARCH 2015 and 2016

13. COMMON SIZE STATEMENT OF PROFIT & LOSS OF J&K BANK AS ON
31st MARCH 2015 and 2016

14. RATIO ANALYSIS OF KEY RATIOS OF J&K BANK FOR THE FINANCIAL
YEARS ENDING MARCH 2012-2016

15. 2011-12 2012-13 2013-14 2014-15 2015-16
Return on Equity 21.22 23.56 22.34 8.6 6.6
0
5
10
15
20
25
RETURNONEQUITY(%)
FINANCIAL YEARS
Return on Equity
Return on Equity
2011-12 2012-13 2013-14 2014-15 2015-16
CASA(%) 40.71 39.23 39.06 41.79 44.13
36
37
38
39
40
41
42
43
44
45
CASA(%)
FINANCIAL YEARS
CASA(%)
CASA(%)

16. 2011-12 2012-13 2013-14 2014-15 2015-16
NET PROFIT PER EMPLOYEE 8.68 11.22 12.62 5.48 4.1
0
2
4
6
8
10
12
14
NET PROFIT PER
EMPLOYEE IN ₹
LAKHS
FINANCIAL YEARS
NET PROFIT PER EMPLOYEE
NET PROFIT PER EMPLOYEE
2011-12 2012-13 2013-14 2014-15 2015-16
BUSINESS PER EMPLOYEE 9.34 11 12.35 11.89 11.79
0
2
4
6
8
10
12
14
BUSINESS PER EMPLOYEE IN ₹
CRORES
FINANCIAL YEARS
BUSINESS PER EMPLOYEE
BUSINESS PER EMPLOYEE

17. 2011-12 2012-13 2013-14 2014-15 2015-16
NPA COVERAGE RATIO 93.76 94.01 90.3 59.02 56.15
0
20
40
60
80
100
NPACOVERAGERATIO
(%)
FINANCIAL YEARS
NPA COVERAGE RATIO
NPA COVERAGE RATIO
2011-12 2012-13 2013-14 2014-15 2015-16
EPS 16.57 21.76 24.39 10.49 8.58
0
5
10
15
20
25
30
EPS(₹)
FINANCIAL YEARS
EPS
EPS

18. 2011-12 2012-13 2013-14 2014-15 2015-16
DIVIDEND (₹) 3.35 5 5 2.1 1.75
0
1
2
3
4
5
6
DIVIDEND(₹)
FINANCIAL YEARS
DIVIDEND (₹)
DIVIDEND (₹)
2011-
12
2012-
13
2013-
14
2014-
15
2015-
16
DIVIDEND PAYOUT RATIO (%) 20.22 22.97 20.5 20.02 20.39
18
19
20
21
22
23
24
DIVIDENDPAYOUT
RATIO(%)
FINANCIAL YEARS
DIVIDEND PAYOUT RATIO (%)
DIVIDEND PAYOUT RATIO (%)

19. ANALYSIS OF CASH SLOW ACTIVITIES OF J&K BANK FOR THE
FINANCIAL YEARS ENDING MARCH 2012-2016

20. 2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
CASH FLOW FROM OPERATING ACTIVITIES 1176.49 1283.86 -685.46 128.72 -218.94
-1000
-500
0
500
1000
1500
CASH FLOW FROM
OPERATING
ACTIVITIES
IN ₹ CR
FINANCIAL YEARS
CASH FLOW FROM OPERATING ACTIVITIES
CASH FLOW FROM OPERATING ACTIVITIES
20
11
-
12
20
12
-
13
20
13
-
14
20
14
-
15
20
15
-
16
CASH FLOW FROM INVESTING ACTIVITIES 2012-2016 -70.46 -90.64 -167.38 -271.27 -135.67
-300
-250
-200
-150
-100
-50
0
CASH FLOW FROM
INVESTING
ACTIVITIES
IN ₹ CR
FINANCIAL YEARS
CASH FLOW FROM INVESTING ACTIVITIES
CASH FLOW FROM INVESTING
ACTIVITIES 2012-2016

21. 2011-
12
2012-
13
2013-
14
2014-
15
2015-
16
CASH FLOWS FROM FINANCING ACIVITIES -200.98 -242.76 -337.58 -337.58 -176.15
-400
-350
-300
-250
-200
-150
-100
-50
0
CASH FLOWS FROM
FINANCING
ACTIVITIES
IN ₹ CR
FINANCIAL YEARS
CASH FLOWS FROM FINANCING ACIVITIES
CASH FLOWS FROM FINANCING ACIVITIES
2011-
12
2012-
13
2013-
14
2014-
15
2015-
16
OPENING CASH & CASH EQUIVALENTS 3548.81 4453.87 5404.33 4213.9 3733.76
CLOSING CASH AND CASH EQUIVALENTS 4453.87 5404.33 4213.9 3733.76 3203
0
1000
2000
3000
4000
5000
6000
CASH & CASH
EQUIVALENTS IN ₹ CR
FINANCIAL YEARS
CASH AND CASH EQUIVALENTS FOR THE FINANCIAL YEARS 2012-2016
OPENING CASH & CASH EQUIVALENTS
CLOSING CASH AND CASH EQUIVALENTS

22. ASSESSING THE EARNING CAPACITY OR
PROFITABILITY
ASSESSING THE MANAGERIAL
EFFCIENCY
ASSESSING THE SHORT-TERM AND
LONG-TERM SOLVENCY OF THE
ENTERPRISE
INTER-FIRM COMAPRISON
ANALYSIS OF FINANCIAL STATEMENTS
OF J&K BANK - OBJECTIVES

23. Assessing the earning capacity or profitability
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2011-12 2012-13 2013-14 2014-15 2015-16
AMOUNT(In₹cr)
YEAR
ANALYSIS OF PROFIT AND LOSS ACCOUNTS
2012-2016
incomes
expenses
profit & Loss
2011-12 2012-13 2013-14 2014-15 2015-16
EPS 16.57 21.76 24.39 10.49 8.58
0
5
10
15
20
25
30
EPS(₹)
FINANCIAL YEARS
EPS
EPS

24. Assessing the managerial efficiency
2011-12 2012-13 2013-14 2014-15 2015-16
NET PROFIT PER EMPLOYEE 8.68 11.22 12.62 5.48 4.1
0
2
4
6
8
10
12
14
NET PROFIT PER
EMPLOYEE IN ₹
LAKHS
FINANCIAL YEARS
NET PROFIT PER EMPLOYEE
NET PROFIT PER EMPLOYEE
2011-12 2012-13 2013-14 2014-15 2015-16
BUSINESS PER EMPLOYEE 9.34 11 12.35 11.89 11.79
0
2
4
6
8
10
12
14
BUSINESS PER EMPLOYEE IN
₹ CRORES
FINANCIAL YEARS
BUSINESS PER EMPLOYEE
BUSINESS PER EMPLOYEE

25. 2011-12 2012-13 2013-14 2014-15 2015-16
NPA COVERAGE RATIO 93.76 94.01 90.3 59.02 56.15
0
20
40
60
80
100
NPACOVERAGERATIO
(%)
FINANCIAL YEARS
NPA COVERAGE RATIO
NPA COVERAGE RATIO
Assessing the long term and short term solvency
2011-
12
2012-
13
2013-
14
2014-
15
2015-
16
RETURN ON ASSETS 1.56 1.7 1.74 0.7 0.57
0
0.5
1
1.5
2
RETURN ON
ASSETS (%)
FINANCIAL YEARS
RETURN ON ASSETS
RETURN ON ASSETS

26. Inter-Firm Comparison
deposits borrowings
shareholder
's funds
investment
s
net block of
assets
j&k 69390.25 2240 6423.98 20353.62 705.12
pnb 553051.13 59755.24 38310.14 157845.89 5247.97
0
100000
200000
300000
400000
500000
600000
j&k
pnb

27. EFFECT OF DEMONETIZATION
ANALYSIS OF FINANCIAL SUMMARY OF FINANCIAL QUARTERS ENDING
SEPTEMBER 2016 AND DECEMBER 2016

28. INTERPRETATIONS AND CONCLUSION
• The Jammu & Kashmir Bank is potentially growing bank in India. But, the
profits of the Bank have shown a downward slope in the financial
Years 2014-15 and 2015-16 and the bank needs to take various financial
and investment decisions to turn its losses into profits.
• The overall financial health of Jammu & Kashmir Bank is showing a
fluctuating trend in every aspect analysed.
The financial health has seem to decline over the financial years 2014-2015
and 2015-16 for which the main reason can be coursed to the massive
floods in the Kashmir valley and huge losses to the bank as its headquarters
are in the city of Srinagar.
• Another significant conclusion made from the data was the effect of
demonetization on the profits of the bank. The total amount of interest
expended increased considerably. The bank was suffering a loss of ₹604.20
crores in the 2nd quarter (July, 2016 – September, 2016) and surprisingly
the losses reduced by an amount of ₹103.93 crores and stood at ₹498.47
crores at the end of the 3rd quarter (October, 2016-December, 2016). The
reason could be huge deposits and minimised withdrawals in the quarter
when demonetization occurred in the Indian economy.

29. Prepared and presented by:-
RIYA ARORA
ROLL NO. - 601470001