Professional Documents
Culture Documents
1. INTRODUCTION
1.1 INTRODUCTION ABOUT THE INTERNSHIP:
An internship is a method of on-the-job training for white-collar and professional
careers. Internships for professional careers are similar in some ways to apprenticeships for trade
and vocational jobs, but the lack of standardization and oversight leaves the term open to broad
interpretation. Interns may be college or university students, high school students, or postgraduate adults. These positions may be paid or unpaid and are usually temporary. Generally, an
internship consists of an exchange of services for experience between the student and an
organization. Students can also use an internship to determine if they have an interest in a
particular career, create a network of contacts or gain school credit. Some interns find
permanent, paid employment with the organizations for which they worked. This can be a
significant benefit to the employer as experienced interns often need little or no training when
they begin regular employment. Unlike a trainee program, employment at the completion of an
internship is not guaranteed.
Page 1
SAHAKARI LTD
To study the profitability and solvency of the bank
The study focuses mainly on the financial performance and various trends at SHRI
1.6 METHODOLOGY:
DATA COLLECTIONS
The process of data collection begins after a research problem has been defined and research
design has been chalked out. Here in this project report the data collected is through secondary
data.
There are two types of dataPrimary data
It is first hand data, which is collected by researcher itself. It was achieved by a direct approach
and observation from the officials of the company.
Secondary data
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
Page 2
Comparative statements.
Trend Analysis.
1.7 REVIEW OF LITERATURE:
Jose Luis Arquero Montano & Sergio Manuel Jimenez Cardoso & John
Joyce (2004):
This paper aims to study and compare the influences on content learning, skills
development, and students' attitudes when studying Financial Statement Analysis due to
changing the previously successful pedagogical strategy of using short cases to one that uses
complex cases.
STOLOWY,
Herve
&
STICKNEY,
Clyde
P. (2000):
The paper reports the results of a survey of the content and learning materials used
in courses in financial statement analysis in Europe and the United States. Differences in
course content appear related to where the financial statement analysis course lodges within the
accounting curriculum.
Page 3
1.8 LIMITATIONS:
1. Comparative statements are generally calculated on past financial statements and thus
forecast for the future is based on past.
2. Financial Statement data is recorded by conventional procedures followed over the years.
3. The balance sheet reflects the position of the concern on the given data. However the real
position of the concern will change from day-to-day. Hence the balance sheet is a static
document.
4. The Study is confined only to JAYANAGAR BRANCH ONLY.
2. INDUSTRY PROFILE
HISTORY OF THE BANK GROWTH
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
Page 4
MEANING OF BANK:
A bank is an institution, which deals in money it means that a bank receives money in the form
of deposits from the public and lends money for the development of trade and commerce.
DEFINITION OF BANK:
The Indian bank regulation act of 1949 defines the term bank as the accepting for the purpose of
investment of deposit of money from the public, repayable on demand or otherwise and drawl by
cheque, draft and order (or) otherwise.
Page 5
CLASSIFICATION OF BANKS:
On the basis of functional classifications:
Commercial or deposit banks
Industrial banks
Agricultural banks
Exchange banks
Savings banks
Central bank
Co-operative bank
On the basis of structural classification:
Group banking
Chain banking
Correspondent banking
Branch banking
Page 6
Unit banking
IMPORTANCE OF BANKING:
Banking has greater importance in the economic development and also in the development of
different fields. Banks are playing a crucial role in the development of banking and they are as
follows:
It provides a convenient and economical means of transfer of funds from one place to
another.
They have recognized their social responsibilities as to grant credit to every section of
society.
DEFINITION:
Page 7
Page 8
Page 9
To promote thrift among the members and thereby increase the supply of funds.
To promote the effective use of credit and to reduce the risk in the granting of credit
through careful and continuous supervision of the operation of the borrowing members.
To reduce the cost of management through the honorary services of members and thereby
keep the cost of credit as low as possible.
Page 10
To make the Co-operative banks credit-worthy and to enable them to raise sufficient
funds to finance other Co-operative enterprises.
Co-operative banks, generally, declare only limited dividends out of their profits in
accordance with the provisions of the Co-operative Societies Act and their own bye-laws.
As the management of Co-operative banks at the lower rung of the ladder depends on the
honorary services of the members, the cost of operation of Co-operative banks is
relatively low.
Because of the low cost of operation, the Co-operative banks are able to provide credit to
the weaker sections at cheaper rates.
membership open to co operative as well as individuals. Mixed CCBs are found in the
states of Assam, Andhra Pradesh, Tamil Nadu, Karnataka and others.
3. State Co-operative Banks.
The State Co operative Bank, also known as apex banks, forms the apex of the cooperative credit structure in each state. They obtain their funds mainly from the general public by
way of deposits, loans and advances from the reserve bank and their own share capital and
reserves.
Anywhere between 50-90% of the working capital of the SCBs are contributed by the reserve
Bank like the CCBs, SCBs, are also pure or mixed.
Page 11
They have provided cheap credit to farmers. They discouraged unproductive borrowing.
They have prompted saving and banking habits among the people, especially the rural
people. Instead of hoarding money, the rural people tend to deposit their savings in the
co-operative or commercial banks.
They have undertaken several welfare activities. They have also taken steps to improve
the morals, policy and education.
Page 12
An Overview:
Welcome to Shri Saraswathi Credit SouhardaSahakari Ltd, a growing Sahakari in the
coastal area of Karnataka state which strives for the financial upliftment of the members. A
product by the young Co-Operators, the Co-Operative started its functioning in 2001. The CoOperative is registered under Karnataka State SouhardaSahakari Act 1997; its Head Office is
situated in Puttur, DK. A due respect to the Souharda Co-Operative Principles has made the CoOperative to focus on continued growth.
Origin of Bank
Cooperative is a product of decade long effort by the young Co-Operators of South Canara.
The economic empowerment through mutual Operative movement. The time of birth of the
organization was, significant, as the district then was in the middle of Economic crisis, with the
closure of many NBFCS, the prices of areca nut the main commercial crop of the district was at
rock Co-Operation is the motto of the organization. The Sahakari was inaugurated by then
central minister Mr. Suresh Prabhu, on 1st September, 2001 in Puttur Town, birth place of Shri
Molahalli Shiva Rao, Beacon Light & Co- bottom.
The Co-Operative movement is having historical background in India. It is the root of Indian life.
Today credit societies play an important role in economic as well as social development of the
country. Apart from that they are promoting development and to fulfill the concept of financial
inclusion.
Shri Saraswathi Credit SouhardaSahakari strongly believes in Co-Operative principles for the
welfare of its members and strives to render various financial services under one roof and thus
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
Page 13
The aim of the srisaraswathi credit souhardasahakari co-op ltd is to distribute the loans
and advances and other banking facility with moderate interest rate.
This bank will be operating as per the NABARD and RBI rules and regulations.
This bank will be operating in the district through branches and regional society and
village level society.
Sri saraswathi credit souhardasahakari co-op ltd is one of the bank in puttur to improve
credit facility loan and advance not only for the farmer but also different level like
business, small scale industry, vehicle loans and individual loan.
Page 14
Mision:
Our mission is to remain as the strong, sound and leading organization in the cooperative credit structure and to be the backbone for the rural financial sector of Puttur.
Through the efficient management of the organization, it would aspire to function as a
professional, profitable and socially responsible organization ensuring the best service to its
stakeholders and customers by providing good value for their money and thereby ensure
accelerated development of the rural population.
Functions:
Accounts maintenance.
Collection of deposits.
They raise loans and advances from co operativebanks and the same to primary credit
societies. So they act as link between the state co operative banks and primary credit
societies.
They raise deposits from the members as well as non members for the purpose of meeting
the credit requirement of the primary credit societies.
Page 15
Facility
Quality policy:
Policy for grievance redressal: This policy document aims at minimizing instance of
customer complaints and grievance through proper service delivery and review
mechanism and to prompt redressal of customer complaints and grievances.
Page 16
Deposits:
Banks collect surplus money from the public as deposits. Banks preserve money colleted
and interest at a certain rate is given on the amount of deposits.
The bank has introduced different deposit schemes, which are as follows:
Particulars
Interest Rate
Savings Deposits
5%
Current Deposits
Nil
Fixed Deposits
10.25 - 10.75
Recurring Deposits
9.50%
Call Deposits
3%
Page 17
Area of operation
Head Office: Darbe, Puttur
Branches
Sullia, D.K
Shirva
Mangalore, D.K
Sheshadripuram, Blore
Belthangady, D.K
Jayanagar, Blore
Infrastructure Facilities
Page 18
Achievements/awards :
Our Souharda is recognized by Karnataka State Souharda Federal Cooperative Limited as best
Souharda among Souharda Cooperatives of Mysore Division. We Thank to all Members for
continuous support for Winning this Award.
Work Flow Model:-The banks work Flow Model which includes barrowing cash
from the customers in the form of deposits and shares from the members and lending
loans and advances to the needy persons is given in the following diagram
Cash inflow :- The bank receives cash from two ways in the market one is share from
members and other is from deposit from the customers
a. Share from members:- The bank issues al shares to its members only .It issues equal
share for each member in the bank
b. Deposit from Customers:The heart of the bank is its customers and it operates its borrowing and lending activities
through its customer money itself. The bank is mainly concentrate on merchants and the general
public in the city. It accepts deposits from all of its customers to lead its day to day transactions.
The bank has offer different types of accounts such as Savings Bank Deposit Accounts, Current
Deposit Accounts, and Fixed Deposit Accounts, to deposit their money in the bank.
Page 19
a. Lending Loans and Advances:The bank has to provide loans and advances to the Merchants, Business man and to the
general public in and around the city with a specified rate of interest. The bank has offered
different types loans as given below:
1. Vehicle Loans
2. Jewel Loans
3. Personal Loans
4. Mortgage loans
5. Poject Loans
6. Housing Loans
Sri Saraswathi Credit SouhardaSahakari Co-op Ltd, implement the information system
and automated all the transactions in the branches.
Increasing the loan schemes with moderate interest rates to reach all the type of people
those who need the funds and improving the recovery management in the next upcoming
years.
Page 20
STRENGTHS:
Good relation with its customer, which also helps for popularizing deposits, loan
disbursement and recovery of the same
WEAKNESS:
Tedious
procedures
have
to
be
followed
before
advancing
loans,
OPPORTUNITIES:
Page 21
THREATS:
Commercial banks are more concentrating toward rural area so they are facing tough
competition.
Up-gradation of technology in other small banks which are still well behind.
Possibility
of
increasing
in
the
level
of
cash
reserve
ratio
(CRR)
and statutory liquidity ratio (SLR) which blocks working funds of the bank.
BOARD OF DIRECTORS
Name
Designation
SATHISCHANDRA. S.R
PRESIDENT
VICE PRESIDENT
DEVIPRASAD.K
DIRECTOR
SUNIL BORKER
DIRECTOR
VINAYAKUMAR
DIRECTOR
B.PADMANABHA BORKER
DIRECTOR
A.SURYANARYANA NAYAK
DIRECTOR
PRABHAKARA NAYAK.P
DIRECTOR
N.RAMESH PRABHU
DIRECTOR
JAYARAMA
DIRECTOR
Page 22
DIRECTOR
VASANTH.A
DIRECTOR
Functions of Board:
The main functions of board are reviewing the Annual results which are placed before the board
allotting various committees.
General Manager
|
Deputy General Manager
|
Assistant General Manager
|
Chief Assistance
|
Senior Assistance
|
Branch Manager
|
Assistant Manger
|
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
Page 23
2.Staff:-
The
total
strength
of
the
bank
as
at
the
end
of
March
2014
stood
BOD
11
PRESIDENT
General Manager
Deputy GM
Senior Manager
Branch Manager
Senior Officer
10
Junior Officer
Probationary Officers
16
Clerk
Office Asst
Trainees
20
FINANCIAL STATEMENT:
Comparative balance sheet for the year ended 31-03-2013 and 31-03-2014
Particulars
2012-13
2013-2014
Absolute
% change
Page 24
1,00,49,000.00
1,54,26,800.00
53,77,800
53.51%
2,21,39,816.53
1,39,46,222.50
5,15,12,839.03
1,16,02,538.4
21,14,477.1
1,90,94,815.5
110.11%
17.87%
58.90%
81,85,26,752.15
21,98,16,274.5
36.71%
LIABILITIES:
Deposits and
other 59,87,10,477.58
accounts
CURRENT
LIABILITIES:
Branch Accounts
14,45,29,636.21
Borrowings From Other -
17,13,28,647.36
1,24,94,006.00
2,67,99,011.15
(1, 24,94,006)
18.54%
-100%
Banks
Chit Liabilities
Other liabilities
Dividends
5,93,575.00
1,78,91,222.00
5,63,981.00
5,44,140.00
2,27,71,446.00
5,94,961.00
(49,435)
48,80,224
30,980
-8.34%
27.28%
5.49%
Provisions
Total
Total liabilities
25,69,194.00
16,61,48,533.21
79,72,76,109.32
37,30,955.00
21,14,64,155.36
1,08,15,03,746.5
11,61,671
4,53,15,622.15
28,42,27,637.2
45.22%
27.27%
35.649%
ASSETS:
FIXED ASSETS:
Land and buildings
24,58,464.65
31,40,891.62
6,82,426.97
27.76%
44,16,093.40
63,11,145.63
18,95,052.23
42.91%
7,29,995.90
11,01,489.62
3,71,493.72
50.88%
35,45,170.97
2,90,446.97
8.92%
1,76,131.00
1,49,711.35
(26,419.65)
-15%
1,10,35,408.95
1,42,48,409.19
32,13,000.24
29.11%
15,46,74,892.32
18,82,97,792.75
336,22,900.43
21.73%
Electricals
Machineries
Vehicles Account
Total
INVESTMENTS:
Investments
and 32,54,724.00
Page 25
1,03,47,261.14
2,18,28,614.54
1,14,81,353.4
110.96%
Total
Current assets:
Cash in Hand
16,50,22,153.46
21,01,26,407.29
4,51,04,253.83
27.33%
91,03,504.00
88,39,629.00
(2,63,875)
-2.89%
NIL
((25,507)
-100%
Banks
Balance with other banks
3,03,32,847.91
2,64,08,401.09
(39,24,446.82)
-12.94%
43,21,65,564.19
64,67,47,230.19
21,45,81,666
49.65%
Other assets
27,12,052.60
18,13,722.42
(8,98,330.18)
-33.12%
Security 22,91,200.00
19,83,065.00
(3,08,135)
-13.45%
Advances
&
Deposits
Shares & Memberships
58,235.00
8,235.00
(50,000)
-85.86%
Head Office
Branch Accounts
Total
14,24,28,377.63
21,01,258.58
62,12,18,546.91
15,50,19,704.44
1,63,08,942.92
85,71,28,930.06
1,25,91,326.81
1,42,07,684.34
23,59,10,383.1
8.84%
676.15%
37.97%
1,08,15,03,746.5
5
28,42,27,637.2
35.65%
TOTAL ASSETS
79,72,76,109.32
Page 26
Finance is lifeblood and never contours of business just as circulation of blood necessary
in human body maintaining life. Finance is very essential for smooth running of business
financial management involves managerial activities concerned with procurement and utilization
of fund for Business purposes. The finance function does with the procurement of money at the
time it is needed and its effective utilization in enterprise. Money is lifeblood of any enterprise as
it is required to purchase machinery and materials. To pay wages and salaries to employee and to
allow credit facilities to customers. An important requirement for success of any business
organization in the provision of sufficient amount of founder capital it can't work unless it has
got sufficient amount to its disposal to purchase machine and materials, building premises, meet
day to day expenses and other purposes.
FINANCIAL STATEMENTS:
Financial statements evolved from the system of accounting and its principles. Accounting is the
process of identifying, measuring and communicating economic information to permit informed
judgments and decisions by users information. It involves recording, classifying and
summarizing various business transactions.
Page 27
Page 28
Page 29
Relevance
Accuracy and freedom from bias
Comparability
Analytical presentation
Promptness
Generally accepted principles
Consistency
Authenticity
Compliance with law
Page 30
2.
3.
4.
5.
Historical in nature
6.
Artificial view
7.
Scope of manipulations
8.
Inadequate information
Page 31
DEFINITION:
In the words of John N Myer, Financial statement analysis is largely a study of relationship
among various factors in a business as discovered by a single set of statements and a study of the
trend of these factors as shown in series of statements. In the words of Metcalf and Titard,
Analyzing financial statements is a process of evaluating the relationship between component
parts of financial statements to obtain a better understanding of a firms position and
performance.
Page 32
3.INTERPRETATION:
After the financial statements are analyzed or dissected into comparable component
parts and the relative magnitude of the comparable component parts (i.ie. the relationship of the
inter-connected component parts) is measured through comparison, the results must be
interpreted.
Page 33
Types of
Financial
analysis
On the basis
of material
used
External
Analysis
Internal
Analysis
On the basis
of modus
operandi
Horizontal
Analysis
Vertical
Analysis
Page 34
Page 35
Page 36
2.
RATIO ANALYSIS:
A ratio explains the relationship between two numbers. In the context of ratio derived
from financial statement, various balance sheet and profit and loss accounts. Considering
that there are many items in a balance sheet and profit and loss accounts, it would be
possible to relate virtually any two items in the form of ratio.
Ratio analysis is a powerful tool of financial analysis. A ratio is defined as "the indicated
quotient of two mathematical expressions" and as "the relationship between two or more
things."1 In financial analysis, a ratio is used as a benchmark for evaluating the financial
position and performance of a firm. The relationship between two accounting figures,
expressed mathematically, is known as a financial ratio (or simply as a ratio).
3. TREND ANALYSIS:
MEANING
Trend Analysis is the practice of collecting information and attempting to spot a pattern, or
trend, in the information. In some fields of study, the term "trend analysis" has more formallydefined meanings.
DEFINITION OF 'TREND ANALYSIS'
An aspect of technical analysis that tries to predict the future movement of a stock based on past
data. Trend analysis is based on the idea that what has happened in the past gives traders an idea
of what will happen in the future.
Although trend analysis is often used to predict future events, it could be used to estimate
uncertain events in the past, such as how many ancient kings probably ruled between two dates,
based on data such as the average years which other known kings reigned.
1. Trend analysis calculates the percentage change for one account over a period of time of
two years or more.
Page 37
Page 38
PARTICULARS
2011-2012
AMOUNT
2012-2013
AMOUNT
2013-2014
AMOUNT
1.FIXED ASSETS:
Land and buildings
Furniture and fixtures
Computer and Software
Electricals
and
19,00,221.00
27,57,387.00
8,01,548.00
16,99,051.00
24,58,464.65
44,16,093.40
7,29,995.90
32,54,724.00
31,40,891.62
63,11,145.63
11,01,489.62
35,45,170.97
Machineries
Vehicles Account
TOTAL
FIXED A
84,608.00
72,42,815.00
1,76,131.00
1,10,35,408.95
1,49,711.35
1,42,48,409.19
ASSETS
11.INVESTMENTS:
Investments
6,28,14,235.63
15,46,74,892.3
18,82,97,792.75
Fund Investments
TOTAL
NIL
6,28,14,235.63
2
1,03,47,261.14
16,50,22,153.4
2,18,28,614.54
21,01,26,407.29
INVESTMENTS
111.Current assets:
Cash in Hand
Borrowings From Other
42,61,268.00
53,865.47
91,03,504.00
25,507.00
88,39,629.00
NIL
Banks
Balance
2,66,46,574.11
3,03,32,847.91
2,64,08,401.09
35,28,84,428.15
43,21,65,564.1
64,67,47,230.19
Other assets
Advances & Security
10,33,854.27
13,65,609.00
9
27,12,052.60
22,91,200.00
18,13,722.42
19,83,065.00
Deposits
Shares & Memberships
Head Office
57,210.00
4,84,72,798.71
58,235.00
14,24,28,377.6
8,235.00
15,50,19,704.44
with
other
banks
Loans and Advances
3
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
Page 39
A+B+
1,19,87,856.13
44,67,63,463.84
21,01,258.58
62,12,18,546.9
1,63,08,942.92
85,71,28,930.06
51,68,20,514.47
1
79,72,76,109.3
1,08,15,03,746.5
58,01,550.00
64,78,827.16
58,08,344.97
1,80,88,722.13
1,00,49,000.00
1,05,37,278.13
1,18,31,745.40
3,24,18,023.53
1,54,26,800.00
2,21,39,816.53
1,39,46,222.50
5,15,12,839.03
42,45,41,310.50
59,87,10,477.5
81,85,26,752.15
C
1.SHARE HOLDERS
FUNDS:
Share capital
Reserves & surplus
Net profit
TOTAL
SHAREHOLDERS
FUND
11.LONG
-TERM
LIABILITIES:
Deposits and
other B
accounts
111.CURRENT
LIABILITES:
Branch Accounts
6,04,60,654.84
14,45,29,636.2
17,13,28,647.36
925
1
-
1,24,94,006.00
Banks
Chit Liabilities
Other liabilities
Dividends
Provisions
TOTAL
CUURENT C
NIL
1,24,06,064.00
5,22,838.00
8,00,000.00
7,41,90,481.84
5,93,575.00
1,78,91,222.00
5,63,981.00
25,69,194.00
16,61,48,533.2
5,44,140.00
2,27,71,446.00
5,94,961.00
37,30,955.00
21,14,64,155.36
51,68,20,514.47
1
79,72,76,109.3
1,08,15,03,746.5
LIABILITES
TOTAL LIABILITES
A+B+
C
Page 40
PARTICULARS
2011-2012
AMOUNT
2012-2013
AMOUNT
2013-2014
AMOUNT
1.FIXED ASSETS:
Land and buildings
Furniture and fixtures
Computer and Software
Electricals
and
100
100
100
100
129.37
160.15
91.07
91.56
165.29
228.88
137.42
208.65
Machineries
Vehicles Account
TOTAL
FIXED A
100
100
208.17
152.36
176.95
196.72
ASSETS
11.INVESTMENTS:
Investments
Fund Investments
TOTAL
100
100
100
246.24
NIL
262.71
299.76
NIL
334.52
INVESTMENTS
111.Current assets:
Cash in Hand
Borrowings From Other
100
100
213.63
47.35
207.44
NIL
Banks
Balance with other banks
Loans and Advances
Other assets
Advances & Security
100
100
100
100
113.83
122.47
261.06
167.78
99.11
183.27
175.43
145.21
Page 41
100
100
100
100
101.95
293.83
17.53
139.04
14.39
319.81
136.04
191.85
ASSETS
TOTAL ASSETS
100
154.26
209.26
100
100
100
100
173.21
162.64
203.70
179.22
265.91
341.72
240.11
284.78
141.02
192.80
A+B+
C
1.SHARE
HOLDERS
FUNDS:
Share capital
Reserves & surplus
Net profit
TOTAL
SHAREHOLDERS
FUND
11.LONG
LIABILITIES:
Deposits and
-TERM
other B
accounts
111.CURRENT
LIABILITES:
Branch Accounts
Borrowings From Other
100
NIL
239.05
NIL
283.37
NIL
Banks
Chit Liabilities
Other liabilities
Dividends
Provisions
TOTAL
CUURENT C
NIL
100
100
100
100
NIL
144.21
107.87
321.15
223.95
NIL
183.55
113.79
466.37
285.03
LIABILITES
TOTAL LIABILITES
100
154.26
209.26
A+B+
C
Page 42
2011-12
2012-13
Absolute
% change
change
LIABILITIES:
SHARE
HOLDERS
FUNDS:
Share capital
58,01,550.00
1,00,49,000.00
42,47,450
73.21%
1,05,37,278.13
1,18,31,745.40
3,24,18,023.53
40,58,450.97
62,23,400.43
1,43,29,301.4
62.64%
107.14%
79.22%
59,87,10,477.5
17,41,69,167.08
41.02%
14,45,29,636.2
8,40,68,981.37
139.05%
1
-
925
100%
Banks
Chit Liabilities
Other liabilities
5,93,575.00
1,78,91,222.00
(593575)
54,85,158
-100%
44.21%
other 42,45,41,310.50
accounts
CURRENT
LIABILITIES:
Branch Accounts
6,04,60,654.84
NIL
1,24,06,064.00
Page 43
5,22,838.00
5,63,981.00
41,143
7.86%
Provisions
Total
8,00,000.00
7,41,90,481.84
25,69,194.00
16,61,48,533.2
17,69,194
9,19,58,051.37
221.11%
123.95%
51,68,20,514.47
1
79,72,76,109.3
28,04,56,519.85
54.26%
Total liabilities
2
ASSETS:
FIXED ASSETS:
Land and buildings
19,00,221.00
24,58,464.65
5,58,243.65
29.38%
27,57,387.00
44,16,093.40
16,58,706.4
60.15%
8,01,548.00
7,29,995.90
(71,552.1)
-8.93%
32,54,724.00
15,55,673
91.56%
84,608.00
1,76,131.00
91,523
108.17%
Total
INVESTMENTS:
Investments
72,42,815.00
1,10,35,408.95
35,92,593.95
49.60%
6,28,14,235.63
15,46,74,892.3
9,18,60,656.69
146.24%
Fund Investments
NIL
2
1,03,47,261.14
(1,03,47,261.14
-100%
16,50,22,153.4
)
10,22,07,917.83
162.71%
91,03,504.00
4,84,236.00
11.36%
25,507.00
(28,358.47)
-52.65%
Banks
Balance with other banks
2,66,46,574.11
3,03,32,847.91
36,86,273.8
13.83%
35,28,84,428.15
43,21,65,564.1
7,92,81,136.04
22.47%
Other assets
10,33,854.27
9
27,12,052.60
16,78,198.33
162.32%
Security 13,65,609.00
22,91,200.00
925,591
67.77%
Electricals
and 16,99,051.00
Machineries
Vehicles Account
Total
6,28,14,235.63
6
Current assets:
Cash in Hand
Advances
&
42,61,268.00
Deposits
Shares & Memberships
57,210.00
58,235.00
1,115
1.95%
Head Office
4,84,72,798.71
14,24,28,377.6
9,39,55,578.92
193.83%
Page 44
Branch Accounts
Total
1,19,87,856.13
44,67,63,463.84
3
21,01,258.58
62,12,18,546.9
TOTAL ASSETS
5,16,82,0514.47
1
79,72,76,109.3
(98,86,597.55)
17,44,55,083.07
-82.47%
39.05%
28,04,55,594.85
54.26%
INTERPRETATION:
SHARE HOLDERS FUNDS
It shows an increase in shareholders fund by 79.22% from 2011-2012to 2012-2013 which
indicates that the bank has issued an additional shares
DEPOSITS
Bank deposits has been increased to 41.02% when compared to 2011-12 this shows more
sources of fund and the bank can issue loans from this deposited and earn profits
CURRENT LIABILITIES
It shows that there is an increase in current liability by 54.26% when compared to 2011-2012
which is not a good sign. The bank should put-in some extra efforts to efficiently control its
liabilities.
FIXED ASSETS
Fixed assets have been increased by 49.67% when compared to 2011-2012 which indicates that
the bank is having sufficient fixed assets during the year.
INVESTMENTS
Bank investments are increased by 162.71 % when compared to 2011-2012 which is good sign
of business. The bank can expect a good return on its investments.
CURRENT ASSETS
Page 45
Comparative balance sheet for the year ended 31-03-2013 and 31-03-2014
Particulars
2012-13
2013-2014
Absolute
% change
change
LIABILITIES:
SHARE
HOLDERS
FUNDS:
Share capital
1,00,49,000.00
1,54,26,800.00
53,77,800
53.51%
2,21,39,816.53
1,39,46,222.50
5,15,12,839.03
1,16,02,538.4
21,14,477.1
1,90,94,815.5
110.11%
17.87%
58.90%
81,85,26,752.15
21,98,16,274.5
36.71%
LIABILITIES:
Deposits and
other 59,87,10,477.58
Page 46
LIABILITIES:
Branch Accounts
14,45,29,636.21
Borrowings From Other -
17,13,28,647.36
1,24,94,006.00
2,67,99,011.15
(1, 24,94,006)
18.54%
-100%
Banks
Chit Liabilities
Other liabilities
Dividends
5,93,575.00
1,78,91,222.00
5,63,981.00
5,44,140.00
2,27,71,446.00
5,94,961.00
(49,435)
48,80,224
30,980
-8.34%
27.28%
5.49%
Provisions
Total
Total liabilities
25,69,194.00
16,61,48,533.21
79,72,76,109.32
37,30,955.00
21,14,64,155.36
1,08,15,03,746.5
11,61,671
4,53,15,622.15
28,42,27,637.2
45.22%
27.27%
35.649%
ASSETS:
FIXED ASSETS:
Land and buildings
24,58,464.65
31,40,891.62
6,82,426.97
27.76%
44,16,093.40
63,11,145.63
18,95,052.23
42.91%
7,29,995.90
11,01,489.62
3,71,493.72
50.88%
35,45,170.97
2,90,446.97
8.92%
1,76,131.00
1,49,711.35
(26,419.65)
-15%
Total
INVESTMENTS:
Investments
Fund Investments
1,10,35,408.95
1,42,48,409.19
32,13,000.24
29.11%
15,46,74,892.32
1,03,47,261.14
18,82,97,792.75
2,18,28,614.54
336,22,900.43
1,14,81,353.4
21.73%
110.96%
Total
Current assets:
Cash in Hand
16,50,22,153.46
21,01,26,407.29
4,51,04,253.83
27.33%
91,03,504.00
88,39,629.00
(2,63,875)
-2.89%
NIL
((25,507)
-100%
Banks
Balance with other banks
3,03,32,847.91
2,64,08,401.09
(39,24,446.82)
-12.94%
43,21,65,564.19
64,67,47,230.19
21,45,81,666
49.65%
Other assets
27,12,052.60
18,13,722.42
(8,98,330.18)
-33.12%
Security 22,91,200.00
19,83,065.00
(3,08,135)
-13.45%
Electricals
and 32,54,724.00
Machineries
Vehicles Account
Advances
&
Deposits
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
Page 47
58,235.00
8,235.00
(50,000)
-85.86%
Head Office
Branch Accounts
Total
14,24,28,377.63
21,01,258.58
62,12,18,546.91
15,50,19,704.44
1,63,08,942.92
85,71,28,930.06
1,25,91,326.81
1,42,07,684.34
23,59,10,383.1
8.84%
676.15%
37.97%
TOTAL ASSETS
79,72,76,109.32
1,08,15,03,746.5
5
28,42,27,637.2
35.65%
INTERPRETATION:
SHARE HOLDERS FUNDS
It shows an increase in shareholders fund by 79.22% from 2011-2012to 2012-2013 which
indicates that the bank has issued an additional shares
DEPOSITS
Bank deposits has been increased to 41.02% when compared to 2011-12 this shows more
sources of fund and the bank can issue loans from this deposited and earn profits
CURRENT LIABILITIES
It shows that there is an increase in current liability by 54.26% when compared to 2011-2012
which is not a good sign. The bank should put-in some extra efforts to efficiently control its
liabilities.
FIXED ASSETS
Fixed assets have been increased by 49.67% when compared to 2011-2012 which indicates that
the bank is having sufficient fixed assets during the year.
INVESTMENTS
Bank investments are increased by 162.71 % when compared to 2011-2012 which is good sign
of business. The bank can expect a good return on its investments.
CURRENT ASSETS
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
Page 48
2011-12
2012-13
2013-14
Page 49
516820514
797276109.32
1081503746.54
PERCENTAGE
100
154.26
135.65
TOTAL ASSETS
135.65
154.26
2013-2014
100
2012-2013
2011-2012
2011-12
2012-13
2013-14
Page 50
5801550
PERCENTAGE 100
10049000
15426800
173.21
265.9
TOTAL EQUITY
15426800
10049000
5801550
2011-2012
2012-2013
2013-2014
2011-12
5808344.97
2012-13
11831745.40
2013-14
13946222.50
PERCENTAGE
100
203.70
117.87
INCREASE
Page 51
NET PROFIT
203.7
100
117.87
2011-12
YEARS
NET
2012-13
2011-2012
PROFIT 5808344.97
AMOUNT
TOTAL
516820514.74
2013-14
2012-13
2013-14
11831745.40
13946222.50
797276109.32
1081503746.54
ASSETS
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
AMOUNT
PERCENTAGE
1.12
1.48
Page 52
1.28
1.48
1.28
2012-13
2013-14
1.12
2011-12
2011-2012
2012-13
2013-14
11831745.40
13946222.50
5801550
10049000
15426800
100
117.74
90.40
PROFIT 5808344.97
AMOUNT
TOTALEQUITY
AMOUNT
PERCENTAGE
Page 53
2011-12
117.74
2012-13
90.4
2013-14
2011-2012
2012-13
2013-14
TOTALEQUITY
5801550
10049000
15426800
AMOUNT
NET LOAN
3528000
4321000.65
6467000
PERCENTAGE
164.44
232.56
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
238.54
Page 54
In the above table it depicts that the maximum percentage in the value of total equity
to net loans was recorded in the year 2013-14 at the rate of 238.54%and the least percentage was
recorded in the year 2011-12 at the rate of 164.44%.
The lending was made through major sources of external borrowings. The equity amount was
used for expansion and increase in the business operation. A mere of 232.56% on an average was
distributed as loans.
232.56
164.4
2011-12
2012-13
238.54
2013-14
2011-2012
2012-13
2013-14
3528000
4321000.65
6467000
425000
5987000.10
8185000
DEPOSITS
NHCE-DEPARTEMENT
PERCENTAGE
83.11 OF MANAGEMENT
72.19 STUDIES
79.01
Page 55
79.01
72.17
2011-2012
2012-13
2013-14
2011-2012
2012-13
2013-14
LIQUID ASSETS
4261268
9103504
88,39,629
TOTAL ASSETS
516820514.74
797276109.32
1081503746.54
PERCENTAGE
0.82
1.14
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
0.81
Page 56
1.14
1.29
2012-13
2013-14
0.82
0.5
0
2011-12
2011-2012
TOTAL 5801550
EQUITY
TOTAL
516820514.47
2012-13
2013-14
10049000
15426800
797276109.32
280456519.85
1.12
1.26
Page 57
5.5
% and the minimum percentage was recorded in the year was 2011-12 at the rate of 1.12%
respectively.
The above analysis shows that the amount of equity as contributed a mere % of 5.5% of total
liabilities which means that the bank had sufficient funds generated for regular functioning
5.5
4.3
2011-12
2.5
2012-13
2013-14
2011-2012
PROFIT 5808344.97
2012-13
2013-14
11831745.40
13946222.50
AMOUNT
TOTAL
ASSETS 516820514.74
797276109.32
NHCE-DEPARTEMENT
OF MANAGEMENT
STUDIES
AMOUNT
1081503746.54
PERCENTAGE
1.29
1.12
1.48
Page 58
2011-12
1.48
1.29
2012-13
2013-14
Page 59
2011-12
INTEREST
ON 35810213.00
2012-13
2013-14
62363390.75
71731344.64
LOANS
NET LOANS
352884428.15
432165564.19
646747230.19
PERCENTAGE
10.14
14.43
11.09
INTEREST EARNED
15
10
10.14
14.43
11.09
5
0
2011-12
2012-13
2013-14
Page 60
2011-12
INTEREST
ON 25854371.50
2012-13
2013-14
47038848
60037452
DEPOSITS
TOTAL DEPOSITS
424541310.50
598710477.58
818526752.15
PERCENTAGE
6.09
7.86
7.33
INTEREST PAID
10
5
6.09
7.86
7.33
2011-12
2012-13
2013-14
Page 61
2011-12
2012-13
2013-14
14.43
11.09
PERCENTAGE
INTEREST ON DEPOSITS 6.09
7.86
7.33
PERCENTAGE
SPREAD PERCENTAGE
6.57
3.76
INTEREST
ON
LOAN 10.14
4.05
the year 2012-13 at the rate of 6.57% and the minimum percentage was recorded in the year
2013-14at the rate of 3.76% respectively.
SPREAD
7
6
5
4
6.57
3
2
4.05
3.76
1
0
2011-12
2012-13
2013-14
Page 62
YEARS
2011-12
2011-12
2012-13
CASH ASSETS
4261268
9103504
8839629
TOTAL DEPOSITS
424541310.50
598710477.58
818526752.15
PERCENTAGE
1.00
1.52
1.07
1.52
1.07
2011-12
2012-13
2013-14
Page 63
5.1
SUMMARY OF FINDINGS
For the year 2011-12 base percentages is 100% and total assets has increased to 154.26%,
& 135.65% for the study period 2011-12 to 2013-14. In the above table shows an
table it shows the Increasing trend in the value of the Total Equity every year.
For the year 2011-12 base percentages is 100% and increased to 203.70%, % the
subsequent years and then there was a decline in the concluding year 2013-14 (117.87%).
In the above table it shows that there is a slight fluctuation in the value of Net Profit in
table clearly implies that there were a lot of fluctuations in the value in the last 3years.
There is a clear depiction of fluctuation in the value of net profit to total equity. Right
from the year 2011-12 to 2013-14 the values were 100%, 117.74%, and 90.40%
respectively.
There is an increasing trend in the value of total equity to net loan. Right from the year
2011-12 to 2013-14 the values were 164.44%, 232.56%, and 238.54% respectively.
There was lot of fluctuations in the value net loans to deposits every year. Starting from
the year 2011-12 to 2013-14 the rates were differing every year i.e 83.11%, 72.19%, and
79.01% respectively.
The values of the Liquid assets to total assets were fluctuating every year and there is
increase and decreasing trend in their values. As we can clearly notice that the values the
years 2011-12 to 2013-14 differing at rates of 0.82%, 1.14% and 0.81% respectively
There is an increasing trend in the value of the total equity to total liabilities every year.
As we can notice that the value was 1.12% in the year 2011-12 and continues to
improvement thereafter. The values were 1.26% and 5.5% respectively in the subsequent
years
The return on total assets shows a fluctuating trend its values every year. Right from the
initial years taken 2011-12 to 2013-14, it shows increasing and decreasing trend in its
values i.e. at the rates of 1.12%, 1.48%, and 1.29% respectively as a whole.
Page 64
We can clearly analyze that there is an increase trend in the values of interest earned
every year apart from the loan year where there was a decrease of 10.14% in the year
2011-12 respectively. Apart from that there is an increase in the other years 2012-13 at
respectively.
It depicts that there is systematic decrease in the values of the percentages of cash assets
to total deposits. Right from the year 2011-12 to 2013-14 i.e.1.00 %, 1.52%, and 1.07%
respectively
5.3 CONCLUSIONS
This project report is prepared for the SHRI SARASWATHI CREDIT SOUHARDA
SAHAKARI LTD to assess their overall financial position. The tools used for analysis are Tend
analysis, Common size Statements and comparative.
Trend analysis is immensely helpful to us in analyzing the change in financial function and
operating efficiency between the times periods that is 2011 to 2014 selected. By studying the
trends of each item we can know the direction of changes whether upward or downward and
NHCE-DEPARTEMENT OF MANAGEMENT STUDIES
Page 65
BIBLIOGRAPHY
The following were few books and its authors which held my hands in the completion of the
project:
1
Books:
Financial management
Author: Reddy Appanaiah
Cost and Financial Analysis
Author: JAWAHAR LAL
Publications: Himalaya Publications
Analysis Of Financial Statements
Page 66
T.S.Grewals
Cost and Financial Analysis
Author: S.P. JAIN, K. L. NARANG
Publications: Kalyani Public
1. Reports:
AUDITORS REPORTS and BALANCE SHEET OF SHRI SARASWATHI CREDIT
SOUHARDA SAHAKARI LTD
2. Websites:
GOOGLE.COM
WIKIPEDIA.COM
INVESTOPEDIA.COM
IDEASREPEC.ORG
SOUDHARA COOPERATIVE.COM
SARASWATHI SAHAKARI.COM
1.FIXED ASSETS:
Land and buildings
Furniture and fixtures
Computer and Software
Electricals and Machineries
Vehicles Account
TOTAL FIXED ASSETS
11.INVESTMENTS:
Investments
Fund Investments
2011-2012
AMOUNT
2012-2013
AMOUNT
2013-2014
AMOUNT
19,00,221.00
27,57,387.00
8,01,548.00
16,99,051.00
84,608.00
72,42,815.00
24,58,464.65
44,16,093.40
7,29,995.90
32,54,724.00
1,76,131.00
1,10,35,408.95
31,40,891.62
63,11,145.63
11,01,489.62
35,45,170.97
1,49,711.35
1,42,48,409.19
6,28,14,235.63
NIL
15,46,74,892.32
1,03,47,261.14
18,82,97,792.75
2,18,28,614.54
Page 67
6,28,14,235.63
16,50,22,153.46
21,01,26,407.29
42,61,268.00
53,865.47
91,03,504.00
25,507.00
88,39,629.00
NIL
Banks
Balance with other banks
Loans and Advances
Other assets
Advances
&
Security
2,66,46,574.11
35,28,84,428.15
10,33,854.27
13,65,609.00
3,03,32,847.91
43,21,65,564.19
27,12,052.60
22,91,200.00
2,64,08,401.09
64,67,47,230.19
18,13,722.42
19,83,065.00
Deposits
Shares & Memberships
Head Office
Branch Accounts
TOTAL
CURRENT C
57,210.00
4,84,72,798.71
1,19,87,856.13
44,67,63,463.84
58,235.00
14,24,28,377.63
21,01,258.58
62,12,18,546.91
8,235.00
15,50,19,704.44
1,63,08,942.92
85,71,28,930.06
ASSETS
TOTAL ASSETS
51,68,20,514.47
79,72,76,109.32
1,08,15,03,746.54
58,01,550.00
64,78,827.16
58,08,344.97
1,80,88,722.13
1,00,49,000.00
1,05,37,278.13
1,18,31,745.40
3,24,18,023.53
1,54,26,800.00
2,21,39,816.53
1,39,46,222.50
5,15,12,839.03
42,45,41,310.50
59,87,10,477.58
81,85,26,752.15
LIABILITES:
Branch Accounts
Borrowings From Other
6,04,60,654.84
925
14,45,29,636.21
-
17,13,28,647.36
1,24,94,006.00
Banks
Chit Liabilities
Other liabilities
Dividends
Provisions
TOTAL
CUURENT C
NIL
1,24,06,064.00
5,22,838.00
8,00,000.00
7,41,90,481.84
5,93,575.00
1,78,91,222.00
5,63,981.00
25,69,194.00
16,61,48,533.21
5,44,140.00
2,27,71,446.00
5,94,961.00
37,30,955.00
21,14,64,155.36
LIABILITES
TOTAL LIABILITES
51,68,20,514.47
79,72,76,109.32
1,08,15,03,746.54
A+B+
C
1.SHARE
HOLDERS
FUNDS:
Share capital
Reserves & surplus
Net profit
TOTAL
SHAREHOLDERS
FUND
11.LONG
LIABILITIES:
Deposits and
-TERM
other
accounts
111.CURRENT
A+B+
C
Page 68
Page 69