This paper shows that according to the study of HDFC bank we can conclude that the company is performing very well even ender the turmoil economic situation of the country. The evidence of which is their increased net profit which has amounted to Rs.113, 413, 323, 000. But the cost of revenue of the company has increased over the year which is cause of concern for the bank. The company is listed in National Stock Exchange in India. The bank has made some investment decision which has resulted in negative returns for the company. This has reduced the cash and cash equivalents of the company to Rs. 209, 377, 263, 000. The accounting principles that is adopted in India is a little different from that of IFRS which is usually applied in developed countries like America, Europe, etc. Thus the item under consideration is usually a little different from that of a manufacturing company and so is their process of accounting. Hence, the bank under consideration has been successful in generating an income of Rs. 325,300,466,000.
This paper approves that the impairment of the assets is usually assessed in the balance sheet of the company. The occurrence of the impairment loss, if any is forecasted in the profit and loss statement of the company. This generally arises when the carrying cost of the assets exceeds the estimated recoverable amount. The revisions of the accounting estimates are prospectively recognized both in current as well as future periods. ...Show more