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A

PROJECT REPORT
ON

ANALYSIS OF FINALCIAL
STATEMENT
THE PANIPAT URBAN CO-OPERATIVE
BANK
SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE

OF
BACHELOR OF BUSINESS ADMINISTRATION

(SESSION 2014-15)
SUBMITTED TO:

SUBMITTED BY:

MISS NISHA GUPTA

PRIYANKA
,

B.B.A. III YEAR


CLASS ROLL No 78O7.
UNIVERSITY ROLL No..

I.B. (P.G.) COLLEGE


AFFILIATED BY KURUKSHETRA UNIVERSISTY, KURUKSHETRA

DECLARATION
I PRIYANKA student of B.B.A. III year in I.B.(P.G.) College, Panipat hereby declare
that the project report entitled ANALYSIS OF FINALCIAL STATEMENT
submitted for the degree of B.B.A. III year is my original work and the project report
has not formed the basis for the award of any diploma, degree, associate ship,
fellowship or similar other titles. It has not been submitted to any other university or
institution for the award of any degree or diploma.

(PRINCIPAL SIGNATURE)

PRIYANKA

ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of theoretical
knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, its not easy to achieve
anything. There is always a sense of gratitude, which we express to others for the help
and the needy services they render during the different phases of our lives. I too would
like to do it as I really wish to express my gratitude toward all those who have been
helpful to me directly or indirectly during the development of this project.
I would like to thank my professor MISS.NISHA GUPTA who was always there to
help and guide me when I needed help. Her perceptive criticism kept me working to
make this project more full proof. I am thankful to her for his encouraging and
valuable support. Working under her was an extremely knowledgeable and enriching
experience for me. I am very thankful to her for all the value addition and enhancement
done to me.
No words can adequately express my overriding debt of gratitude to my parents whose
support helps me in all the way. Above all I shall thank my friends who constantly
encouraged and blessed me so as to enable me to do this work successfully.

PRIYANKA

TO WHOM SO EVER IT MAY CONCERN

Certified that the project on ANALYSIS OF FINALCIAL STATEMENT has been


completed by GOVIND AGGARWAL student of B.B.A .III year ,I.B.(P.G.)
College ,Panipat under my guidance . She has submitted the report in the partial
fulfillment of the requirement for the degree bachelor of business administration from
Kurukshetra University, Kurukshetra

It is his original research and I recommend that this should be sent for evaluation

CHAPTER 1

Profile of bank

2.1 Introduction to Banking Industry


2.2 Growth of Indian Financial Sector
2.3 Panipat co-operative banks in India
2.4 -About PanipatPanipat co-operative bank Ltd.
2.5 Financial Highlights of Panipat Panipat co-operative bank Ltd.
2.6 Retail Banking of PanipatPanipat co-operative bank Ltd.
2.7 Introduction of Corporate Governance by OSCB Ltd.

2.1-Introduction to Banking Industry


Introduction:
Modern banking in India is said to be developed during the British era. In the 1st half of the 18th
century, the British East India Company established three banks -the Bank of Bengal in 1809, the Bank of
Bombay in 1840 and the Bank of Madras in 1843. But in the course of time these three banks were
amalgamated to a new bank called Imperial Bank and later it was taken over by the State Bank of India in
1955. Allahabad Bank was the first fully Indian owned bank. The Reserve Bank of India was established in
1935 followed by other banks like Punjab National Bank, Bank of India, Canara Bank and Indian Bank.
In 1969, 14 major banks were nationalized and in 1980, 6 major private sector banks were taken over
by the government. Today, commercial banking system in India is divided into following categories.
Types of Banking:
1. Central Bank
The Reserve Bank of India is the central Bank that is fully owned by the government. It is governed by
a central board (Headed by a Governor) appointed by the Central Government. It issues guidelines for the
functioning of all banks operating within the country.
2. Public Sector Banks
A. State Bank of India and its associate banks called the State Bank Group
B. 19 Nationalized Banks
C. Regional Rural Banks mainly sponsored by public sector banks

3. Private Sector Banks

A. Old generation private banks


B. New generation private banks
C. Foreign banks operating in India
D. Scheduled panipat co-operative banks
E. Non-scheduled banks

4. Co-operative Sector
The co-operative sector is very much useful for rural people. The panipat co-operative banking sector is
divided into the following categories:
A. State panipat co-operative banks
B. Central panipat co-operative banks
C. Primary Agriculture Credit Societies

5. Development Banks/Financial Institutions


A.
B.
C.
D.
E.
F.
G.
H.
I.
J.

IFCI
IDBI
ICICI
IIBI
SCICI Ltd.
NABARD
Export-Import Bank of India
National Housing Bank
Small Industries Development Bank of India
North Eastern Development Finance Corporation

Banking Services:
Banking in India is so convenient and hassle free that one (individual, groups or whatever the case
may be) can easily process transactions as and when required. The most common services offered by banks in
India are as follow:

"
Bank Accounts: It is the most common service of the banking sector. An individual can open a bank
account which can be either savings, current or term deposits.
"
Loans: You can approach all banks for different kinds of loans. It can be a home loan, car loan, and
personal loan, loan against shares and educational loans.
"
Money Transfer: Banks can transfer money from one corner of the globe to the other by issuing
demand drafts, money orders or cheques.
"
Credit and Debit cards: Most of the banks offer credit cards to their customer which can be used to
purchase goods and services on credit. On the other hand debit card also used to draw cash easily.
"
Lockers: Most banks have safe deposit lockers which can be used by the customers for storing
valuable, important documents or jewellery.
Banking Services for NRIs:

Non Resident Indians or NRIs can open accounts in almost all Indian banks. The three types of accounts that
NRIs can open are:
"

Non-Resident (Ordinary) Account - NRO A/c

"

Non-Resident (External) Rupee Account - NRE A/c

"

Non-Resident (Foreign Currency) Account - FCNR A/c

Banking and Finance:

Banking industry in India has evolved lately under the impact of the stimulus packages announced by the
Government. According to the Annual Policy 2008-09 of the Reserve Bank of India (RBI), the central bank,
key monetary aggregates have witnessed some growth in 2008-09. This is reflected in the changing liquidity
positions arising from domestic and global financial conditions and the policy initiatives taken by the
government. Also, reserve money variations during 2008-09 have largely reflected an increase in currency in
circulation and reduction in the cash reserve ratio (CRR) of banks.

According to a study by Dun & Bradstreet (an international research body)-"India's Top Banks 2008"-there has
been a significant growth in the banking infrastructure. Taking into account all banks in India, there are overall
56,640 branches or offices, 893,356 employees and 27,088 ATMs. Public sector banks made up a large chunk
of the infrastructure, with 87.7 per cent of all offices, 82 per cent of staff and 60.3 per cent of all automated
teller machines (ATMs).
The Credit Scenario
The year-on-year (y-o-y) aggregate bank deposits stood at 21.2 per cent as on January 2, 2009. Bank credit
touched 24 per cent (y-o-y) on January 2, 2009 as against 21.4 per cent on January 4, 2008. The year-on-year
(y-o-y) growth in non-food bank credit at 23.9 per cent as on January 2, 2009 was higher than that of 22.0 per
cent as on January 4, 2008. Increase in total flow of resources from the banking sector to the commercial sector
was also higher at 23.4 per cent as compared with 21.7 per cent a year ago. The incremental credit-deposit ratio
rose to 81.4 per cent as on January 2, 2009, as against 63.1 per cent as on January 4, 2008. Also, during 200809 so far, the total flow of resources to the commercial sector from banks stood at US$ 58.83 billion up to
January 2, 2009. Scheduled commercial banks' credit to the commercial sector expanded by 27.0 per cent (y-oy) as on November 21, 2008, as compared with 23.1 per cent a year ago.

There has been variation in credit expansion across bank groups. Credit expansion as on January 2, 2009 for
public sector banks stood at 28.6 per cent, scheduled commercial banks (SCBs) including the regional rural
banks (RRBs) at 24 per cent, foreign banks at 6.9 per cent and private sector banks at 11.8 per cent, according
to the Annual Policy for 2008-09 of Reserve Bank of India.

Several measures initiated by the Reserve Bank have resulted in banks reducing their deposit and lending rates
between November 2008 and January 2009. The range for deposit rates for public sector banks varied from
5.25 to 8.5 per cent, foreign at 5.25 to 7.75 per cent and private sector banks at 4 to 8.75 per cent. In the postcrisis quarter caused due to collapse of Lehman Brothers, large corporate like Infosys moved their deposits to
State Bank of India (SBI), the country's largest bank. Infosys has revealed that it transferred deposits of nearly
US$ 200.61 million from ICICI Bank to SBI last year.

Deposits as on January 2, 2009 for public sector banks stood at 24.2 per cent, scheduled commercial banks
(SCBs) including the regional rural banks (RRBs) at 21.2 per cent, foreign banks at 12.1 per cent and private
sector banks at 13.4 per cent, according to the Annual Policy for 2008-09 of the Reserve Bank of India.

The prime lending rates of public sector banks stood at 12 to 12.5 per cent, private sector banks at 14.75 to
16.75 per cent and foreign banks 14.25 to 15.50 per cent as on January 2009.

Bank loans rose 18.1 per cent on year-on-year basis as on March 13, the RBI has said in its Weekly Statistical
Supplement released on March 27, 2009. Outstanding loans rose to US$ 541.82 billion in the two weeks to
March 13. The non-food credit rose to US$ 530.19 billion in the two weeks, while food credit stood at US$
9.61 billion in the same period.

Since October 2008, the central bank has cut the cash reserve ratio, or the proportion of deposits that banks set
aside, and the repo rate, or the rate at which it lends to banks, by 400 basis points each to inject liquidity into
the system and activate a lower interest rate regime. Also, the reverse repo rate has been lowered by 200 basis
points to discourage banks from parking surplus funds with RBI. Till April 7, 2009, the CRR had further been
lowered by 50 basis points, while the repo and reverse repo rates have been lowered by 150 basis points each.
Public sector banks have pruned their benchmark prime lending rates (BPLRs) by 150-200 basis points. Also,
in April 2009, private sector banks such as Axis and Bank of Rajasthan have reduced their BPLRs by 50 basis
points. Only few foreign banks such as Citibank have pared home loan rates by 50 basis points to 13.75 per
cent.

The rupee depreciated during 2008-09, reflecting varied developments in international financial markets and
portfolio outflows by foreign institutional investors (FIIs). The rupee exchange rate was between 48.37 to
49.19 against the US dollar and 63.60-68.09 against the Euro in January 2009.

Government Initiatives
Apart from the bank rate cuts announced in the stimulus packages, cash withdrawals from bank will not attract
tax from April 1, 2009 following abolition of the banking cash transaction tax (BCTT) in the Union Budget

2008-09. The total collection of BCTT stood at US$ 120.36 million in 2008-09. Also, inter-ATM usage
transaction became free of charges effective April 1, 2009.
Exchange rate used: 1 USD = 49.8417 INR

2.2-GROWTH OF INDIAN FINANCIAL SECTOR

The Indian economy continued to record strong growth during 2007-08, albeit with some moderation. Real
gross domestic product (GDP) growth rate at 9.0 per cent during 2007-08 moderated from 9.6 per cent during
2006-07, reflecting some slow down in industry and services. A positive feature during the year was a recovery
in the growth of real GDP originating in the agricultural sector, after the slowdown experienced in the previous
year. Despite this moderation, the overall growth rate of the Indian economy during 2007-08 was noteworthy
in the global context.

During 2007-08, the growth of real GDP originating from the industrial sector decelerated to 8.2 per cent as
against 10.6 per cent in 2006-07. In terms of Index of Industrial Production (IIP), industrial growth was at 8.5
per cent as against 11.5 per cent in 2006-07. Manufacturing sector growth at 9.0 per cent during 2007-08 (12.5
per cent during 2006-07) was the lowest in the last four years. The mining and electricity sectors also grew at a
slower pace during 2007-08. In terms of use-based classification, the performance of the capital goods sector
was particularly impressive with 18.0 per cent growth.

However, the basic goods, intermediate goods and consumer goods sectors recorded decelerated growth of 7.0
per cent, 8.9 per cent and 6.1 per cent, respectively, during 2007-08. The performance of the industrial sector
was also affected by the subdued performance of the infrastructure sector, registering 5.6 per cent growth
during 2007-08. The services sector recorded double digit growth consistently in the last three years. It grew
by 10.7 per cent during 2007-08, on top of 11.2 per cent growth in 2006-07

The Reserve Bank during 2007-08 had to contend with large variations in liquidity not only due to swings in
cash balances of the Central Government, but also on account of large and volatile capital flows. The Reserve
Bank judiciously used the CRR, LAF and MSS to manage such swings in liquidity conditions, consistent with
the objectives of price and financial stability. As a whole, there was a net absorption of liquidity on 171 days
and net injection of liquidity on 75 days during 2007- 08. The average daily net outstanding balances under
LAF varied between injection of Rs.10,804 crore during December 2007 to absorption of Rs.36,665 crore in
October 2007. Net issuances under the Market Stabilisation Scheme (MSS) during 2007-08 amounted to
Rs.1,05,691 crore.

In the foreign exchange market, the Indian rupee exhibited two-way movements in the range of Rs.39.26-43.15
per US dollar during 2007-08. The Indian rupee depreciated to Rs.41.58 per US dollar on August 17, 2007
from Rs.40.43 per US dollar on July 31, 2007. The exchange rate of the rupee appreciated thereafter up to
January 2008. The rupee moved in a range of Rs.39.26-39.84 per US dollar during October 2007- January
2008. However, the rupee started depreciating against the US dollar from the beginning of February 2008 on
account of FII outflows, rising crude oil prices and heavy dollar demand by oil companies. The exchange rate
of the rupee was Rs.39.99 per US dollar at end-March 2008.

2.3-Panipat co-operative banks in India

The Co operative banks in India started functioning almost 100 years ago. The Cooperative bank is an
important constituent of the Indian Financial System, judging by the role assigned to co operative, the
expectations the co operative is supposed to fulfil, their number, and the number of offices the cooperative
bank operate. Though the co operative movement originated in the West, but the importance of such banks
have assumed in India is rarely paralleled anywhere else in the world. The cooperative bank in India plays an
important role even today in rural financing. The businesses of cooperative bank in the urban areas also have
increased phenomenally in recent years due to the sharp increase in the number of primary panipat cooperative banks.
Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also
regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Cooperative Societies) Act, 1965.

Cooperative banks in India finance rural areas under:


i.

Farming

ii.

Cattle

iii.

Milk

iv.

Hatchery

v.

Personal finance

Cooperative banks in India finance urban areas under:


i.

Self-employment

ii.

Industries

iii.

Small scale units

iv.

Home finance

v.

Consumer finance

vi.

Personal finance

Some facts about Cooperative banks in India


i.

Some cooperative banks in India are more forward than many of the state and private sector banks.

ii.
According to NAFCUB the total deposits & landings of Cooperative Banks in India is much more than
Old Private Sector Banks & also the New Private Sector Banks.
iii.
This exponential growth of Co operative Banks in India is attributed mainly to their much better local
reach, personal interaction with customers, and their ability to catch the nerve of the local clientele.

2.4-About Panipat co-operative bank Ltd.


The PanipatPanipat co-operative bank, a Scheduled Bank under RBI Act was registered in the year
1948 as the Apex Bank of the short term Coop. Credit structure of Panipatwith an objective of Development of
the agrarian economy of Panipatby catching the credit equipment of the terms of the state.
The OSCB had made a humble beginning with a Share Capital of Rs. 1.76 lakhs and a borrowing of
Rs.25.50 lakhs to address the problem of farm credit dispensation. The OSCB, in its own way has contributed
in providing farm credit and inputs to bring the desired change over the years. The Bank has been trying to
develop the primary societies viz. PACS (Primary Agricultural Co-operative Society) which constitutes of
schemes as LAMPS (Large Scale Agriculture Multipurpose Co-operative Society) / FSS (Farmers Service Cooperative Society).
The activities of the OSCB are not confined to dispensation of farm credit alone. As a schedule bank, it
has responded to the sweeping change in banking service in view of advancement in Information
Techchnology.
The Bank has assumed the role of leader of the Coop - Credit Structure to develop the lower tiers to
cope with the emerging challenges of banking activities. The activities of OSCB are

General Banking Business


Re-finance to the DCCB
Dispensation of farms credit
Production Credit

Who's Who

MEMBERS OF THE MANAGING COMMITTEE OF PANIPATPANIPAT CO-OPERATIVE BANK


LIMITED, BHUBANESWAR

Sri Jagneswar

President

Smt. Kamalini Mohanty

Vice President

Sri R.N. Dash, IAS

Our Inception and Corporatization

General Banking Business:


The Bank has been accepting deposits from the public and offering all banking facilities to its
customers through its fully computerized branches and extension counts at Bhubaneswar, Cuttack, Paradeep,
Sambalpur. The Banking services offered by the banks include acceptance of all types of deposits, bills, and
exchange, issues of letter of credit, advancing loans to farm and non-farm sector.
Provision of locker facilities. The bank has made a humble beginning in providing ATM facility in
its Main Branch at Pandit Jawarharlal Nehru Marg.Bhubaneswar for providing Any Time Banking. This
facility shall be provided in all the served cities soon. Integration of all the branches and extension counters
are on the anvil to provide Anywhere Banking Services.

Refinance to DCCBs:
The OSCB came into existence to support the lending activities of its affiliated DCCBs. The Bank
provides refinance to them to pursue the following activities.
(i) Dispensation of farm Credit:

Product Credit:

In Orissa, 39.48 lakh farmers have been enrolled as members of the primary Agriculture Coop. Societies
(PACS)/Large Sized Agriculture

And Multi Purpose Co-operative Societies (LAMPS)/Farmers Services Societies (FSS).The Farm credit
requirement of the farmer is met by these societies by availing loans from the DCCBs. The OSCB extends

Refinance facilities to the DCCBs for financing the PACS. During 1999-2000, Rs. 426.23 Crores were
disbursed to 6.76 lakhs farmers in the state.

Investment Credit:

The Bank has been dispensing investment credit for Minor Irrigation, Farm Mechanization, Dairy, Poultry,
Horticulture, Plantation, Sericulture etc. through the DCCBs and PACS/LAMPS/FSS. The OSCB, in
The Indian Banking Scenario:
consultation with the NABARD and Govt. of Panipatprepares plans and programs for dispensation of
investment credit and closely monitor the financing, utilization etc.
SCB (State Panipat co-operative bank)
(ii) Non-farm sector Financing:
CCB (Cental Panipat co-operative
bank)sectors. The DCCBs have been
The OSCB has facilitated the DCCBs diversifying into financing of non-farm
dispensing non-farm credit to small-scale industries in shape of block capital and working capitals. Loans are
also advanced for trading activities, purchase of commercial vehicles, housing etc. With refinance support
UCB (Urban Panipat co-operative bank)
from the OSCB. The branches of the banks are also proving these loans directly.

(iii) Handloom sectors financing:

PCB (Primary Panipat co-operative bank)

(State Co-operative
The
OSCB
has
been
financing
the
handloomSCARDB
cooperative
societiesAgro-Rural
Development
Bank)
For production and marketing through DCCBs. The PanipatHandloom Weavers
Society
is directly financed
by the Bank.

Direct Finance by OSCB


The OSCB has directly financed the Sugar Industries in the state to
help the cultivators to get remunerative prices for their sugarcane
crop. It has also financed the PanipatCoop Marketing Federation
for fertilizers business. Besides the following large units are also
financed by the bank.
a. Neelachal Ispat Nigam Large Scale Steel Industry

Chairman and MD of OSCB in a


discussion with MD NABARD

b. Kalinga Hospital- Corporate Hospital


c. Bilati (Orissa) Ltd. Tropical Food processing Unit.
d. Flour Mills

Mr. Y.C. Nanda about Credit


Expantion

e. Press
f.

Mass Media

Promotional and Development Role


As The Apex Bank of the Coop Credit Structure, the bank has assumed the role of leadership to develop the
structure to face the emerging challenge in banking business. The Following activities have been taken by the bank
in these regards.
i.

Introduction of Kisan Credit Card: - The OSCB has been facilitated dispensation of entire farm credit
through Kisan Credit Card only to enable the farmer members to get instant credit. The DCCBs with the
help of the Bank have transformed 813 primary societies as Mini Banks who have mobilized Rs. 250 crores
from the rural areas.

ii.

Information Technology in DCCBs :- The OSCB has taken the responsibility to computerize the operation
of the DCCBs to face the challenge from their commercial counterparts. The software package is finalized
for the purpose.

iii.

Face lift of the branches of DCCBs and the Mini Bank: - The Bank has been providing regular assistance
for the face-lift of the DCCB Branches and PACS. The NABARD has also help 200 PACS with financial
assistance for improvement of infrastructure facilities.

iv.

Organization and linkage of self-help Groups:-The Banks has been patronizing and close monitoring
organization of self help groups at primary level and monitoring the progress.

v.

Human Resources Development: - The OSCB has been maintaining a Training Institute to impart training
to the personnel of DCCBs and PACS/ LAMPS/FSS. Regular Training programs is conducted by the
institute for the purpose.

vi.

Conduct of Study:- To find out the reasons for low off- take of farm
Credit, the bank had appointed all four Universities of the states. They have given their reports basing on
which corrective actions have been taken. The bank has also undertaken a study on functioning of SHGs in

West Bengal to emulate their experience in the state.

vii.

Preparation
of
development
Action
Plan
and
Signing
Of
MOU:At the behest of OSCB, the DCCBs have been preparing DAPs and Signing MOU with the Bank and
NABARD. This effort of the banks has created a cost consciousness among the lowest tiers and their turn
over has increased manifold.

viii.

Image Building: The Bank has been undertaking advertisement through hoarding and electronics media to
boost up the images of the entire credit structure.

ix.

NABARD as partner of the Bank: - The NABARD has been extending required support to the Bank to
accomplish
its
objectives.
The assistance include liberal and confessional refinance, assistance from Coop Development Fund,
Support to the women Development cell, Technical, monitoring and Evaluation Cell, Faculty support to the
Training Institute Etc.

x.

Excellence Recognized:- The National Federation of state Coop Banks (NAFSCOB) has awarded the Bank
for its outstanding performance for consecutive four years. The NABARD has also awarded the bank for
its performance during 1997-98. The Bank has been achieving all the MOU Parameters.

xi.

Profits since Inception: - The Bank has been earning profit since its inception and paying divided to its
shareholders uninterruptedly.

xii.

Corporate Vision:- The Bank aims at a vibrant Coop. Credit Structure by strengthening PACS and DCCBs ,
best customer services through computerization and anytime-anywhere Banking and above all a satisfied
clientele.
OSCB Ltd. Network

Angul United CCB

Aska CCB

Balasore Bhadrak CCB

Banki CCB

Berahampur CCB

Bhawanipatana CCB

Bolangir DCCB

Boudh CCB

Cuttack CCB

Keonjhar CCB

Khurda CCB

Koraput CCB

Mayurbhanj CCB

Nayagarh CCB

Sambalpur DCCB

Sundaragarh CCB

United Puri Nimapara CCB

Short Term Credit Panipat co-operative banking Sector

STATUS PAPER ON SHORT TERM COOPERATIVE CREDIT STRUCTURE IN PANIPAT

The short term cooperative credit in Panipatcomprising 2714 PACS (including 218 LAMPS and 6 FSS) at
the grass roots level, 17 District Central Cooperative Banks at the middle rung and PanipatCooperative Bank at
the apex level have been rendering yeomens service to the farming community. From out of around 50 lakh
agricultural families, 44.98 lakh families have become members of the PACS taking the coverage to 90%.

Progress in coverage of members during past 5 years :


Year

No.
Agril.

of No.
of % of coverage of No.
members
membership
to indebted

of

199798
199899
199900
200001*
200102*
200203
200304
200405
200506
200607

families)

enrolled

39.48

34.60

total no. of Agril. members


families
87.06
13.66

39.48

36.58

92.65

14.78

39.48

37.72

95.50

14.97

50.14

38.89

77.78

16.10

50.14

39.33

78.66

16.09

50.14

39.33

79.44

15.57

50.14

40.56

80.89

17.21

50.14

44.75

89.25

22.91

50.14

44.98

89.70

50.14

44.98

89.70

2.5-Financial Highlights PanipatPanipat co-operative bank Ltd.

The PanipatPanipat co-operative bank has made strides in many key areas and achieved all targets setup in the
Development Action Plan (DAP). The funds comprising of paid of capital and resource, deposit and borrowing
are the main resource of the bank. A Major chunk of this resources are deployed under the loans and advances
to the affiliated central Cooperative Banks, Member society and individuals for different purpose under farm
and non-farm sectors.
The Statutory investment requirement under RBI Act and BR Act are met by investment in Central/State
Governance Securities and others approved trustee securities, seasonal investible surpluses are deployed in call
and short term deposits with commercial banks, to maximize as yield on assets.
Besides remaining vigilant over judicious deployment of funds, the banks is also making concerted efforts to
bring down the level of non earning assets of the banks and increase the financial margin.

Seasonal investible surplus are deployed in call and short terms


deposits with commercial banks and DFHI etc. to maximise the
yields on assets. Beside remaining vigilant over judicious
deployment of funds, the bank is also making concerted efforts to
bring down the level of non-earning assets of the bank and increase
the financial margin. Also see the Profit & Dividend of OSCB
The Bank since its inception operated above the break even level and attained sustainable viability long since.
As a result the bank continued to build up its Reserves and Funds as per the provision of the bye-laws. The
total Reserves at the end of 1997-1998 stood at Rs.5752.52 Lakh as against Rs.4711.00 Lakh in 1996-97
.Quantumwise, the reserves incresed by Rs.1041.52 Lakh during the year, recording growth rate of 22.11 % .

Sources And Uses of Funds


Important financial indicators of OSCB and DCCBs during past 4 years.
OSCB
Sl. Particulars

2003-04

2004-05

2005-06

2006-07
(Provisional)

1
2
3

Share Capital
Reserve Fund
Own Fund

4958.32
13917.91
18876.23

5168.62
16749.31
21917.93

6437.98
18492.47
24930.45

6976.86
20173.87
27150.73

Deposits

102601.38

107850.94

121315.98

129586.23

Borrowings

75573.56

69151.18

95434.17

125141.36

Working Fund

212573.39

214139.32

257252.88

295086.90

Loans
outstanding
Investments

109908.08

127898.44

168220.52

193761.25

83288.41

68195.11

71145.27

88822.10

952.96

1106.80

1385.34

1562.06

1347.51

1744.43

1969.39

916.00

6%

7%

7%

8
9

Per employee
business
10 Net profit
11 Dividend

(Rs. in Lakhs)
2007-08 Percentage of
growth over
previous year
7137.58
8.37%
21530.15
9.09%
-8.91%
156626.80
6.82%
166593.24
31.13%
-14.71%
-15.18%
56455.67
24.84%
-12.76%
-8.37%

CCBs
Particulars

(Rs. in Crores
2002-03

2003-04

2004-05

2005-06

1. Own fund
2. Deposits
3. Loans & Advances
4. Working Capital
5. Cost of Management(COM)
6. % of COM to WC

181.57
1569.25
1820.99
2897.44
49.63
1.71
13
-7.25/ +9.75
105.95

212.18
1749.58
2102.26
3224.43
51.72
1.60
15
-1.95+17.25
94.77

231.13
1830.35
2346.14
3577.53
53.83
1.50
17
+46.33
53.90

266.23
1940.35
2746.35
4141.60
55.56
1.34
16
-2.40 +13.23
46.61

7. CCBs earning operating profit


8. Profit/Loss
9. Accumulated Losses

Reserves:
The Bank since its inception operated above the break even level and attained sustainable viability long
since. As a result, the bank continued to build up its Reservers and Funds as per the provision of the bye-laws.
The total Reserves at the end of 1998-99 stood at Rs.7092.22 Lakh as against Rs. 5752.52 Lakh in 1997-98.
Quantumwise, the reserves increased by Rs. 1339.70 Lakh during the year, recording growthrate of 23.29 % .
Composition of Reserves and Funds of the Bank from 1996-97 along with year-wise growth rate are indicated
below.
Types of Reservers

Rs in Lakh
1996-97

1997-98

1998-99

Statutory Reserve Fund

404.07

439.18

484.68

Agril,Credit Stabilisation

1803.83

1966.45

2050.64

Other Reservers

2503.10

3346.89

4556.90

Total :

4711.00

5752.52

7092.22

Year

Growth Rate of Reserves ( In Lakh)


Amount wise
Amount
over Last Year

Increase

Percentage of Growth

1996 - 97

4711.00

193.25

4.28%

1997 - 98

5752.52

1041.52

22.11%

1998 - 99

7092.22

1339.70

23.29%

Deposits
(Rs. in Crores
Deposit Mobilisation.
Year

19992000
20002001
20012002
20022003
20032004
20042005
20052006
20062007

PACS
Total Deposit
238.97

CCB
% of Growth Total
during the yr. Deposit
42
951.33

OSCB
% of Growth Total
during the yr. Deposit
24
560.06

% of Growth
during the yr.
34

321.58

30

1188.96

25

731.27

31

425.47

10

1406.85

18

874.82

20

432.75

1569.25

13

886.12

446.82

1761.25

12

1026.01

16

494.85

11

1853.48

1078.32

516.33

1955.75

1213.16

12

557.07

2126.80

1295.86

Borrowings
Disbursement of schematic loans:
The short term cooperative credit structure is not lagging behind in financing investment credit for acquisition
of capital assets by the farmer members to increase agriculture production and productivity by adopting
modern technology. The DCCBs and PACS with the assistance of OSCB have been financing activities like
plantation and horticulture, sericulture, pisciculture, farm mechanisation, small road transport operators, small
business, small scale industries, etc. both under farm and non farm sector. The financing for the purpose
during last 8 years is given as follows:

(Rs. in Crores

Schematic finance during last five years


Year

1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07

Finance under Farm Sector


Target
Achievement
No.
Amt.
4700.00
6430 2031.88
6300.00
13291 3765.41
5560.00
13287 2793.90
5310.00
5330 2001.55
5000.00
2566 1114.54
5000.00
5661 1693.82
9500.00
8672 2736.39
12800.00 10766 3937.78

Finance under Non-farm Sector


Target
Achievement
No.
Amt.
5300.00
3153
2092.69
3700.00
3581
1905.20
2440.00
4677
1219.39
2095.00
70.72
1950.73
2500.00
13306
3402.41
5000.00
24225
3247.66
5000.00
15679
3717.40
10000.00
19030
3992.71

Total
Target
10000.00
10000.00
8000.00
7405.00
7500.00
10000.00
14500.00
22800.00

Achievement
No.
Amt.
9583 4124.57
16872 5670.61
17964 4013.29
12342 3952.28
15872 4516.95
29886 4941.48
24351 6453.79
29796 7930.49

2.6-Retail Banking of PanipatPanipat co-operative bank Ltd.:

Housing loans : The bank is financing Housing Loan under its "APNA GHAR " scheme. Maximum amount
under this head is Rs.500000.00 for purchase of readymade house or construction. For repair, renovation or
addition/ alteration the limit is Rs.50000.00. The rate of interest is 13% on reducing balance. Maximum
repayment period is 15 years with 18 months moritorium period.
Consumer Durable Requirement / Formalities
1. Maximum limit Rs. 50000.00 or 75% of the cost of the item.
2. Subject to five times monthly gross income.
3. Repayable in maximum 40 monthly installments in reducing balance.
Motor Vehicle Finance
For any sort of Surface Transport and Water Transport vehicle both for commercial and personal pupose.
Requirement / Formalities
1. 75% of the total cost of vehicle, including insurance and registration.
2. Repayable in 60 monthly installments reducing balance.
Business Enterprise
Terms Loan for
1. Fixed Assets for Projects.
2. Commercial Complex and Kalyan Mandap
3. Hotels, Tourist Resorts, Health Care units.
4. Equipment and Machinaries.
Requirement / Formalities

1. Maximum 75% of the fixed Assets


2. Maximum repayable periods 10 years.
3. Interest in reduced balance method.

Working Capital Loans


1. Retail Business
2. Trader
3. Wholesaler
4. Project Solution

Requirement / Formalities
1. Maximum 75% of working capital requirement subject to Stock Holding.
2. Quarterly Interest on days balance.

2.7-Introduction of Corporate Governance by PanipatPanipat co-operative bank Ltd.:


PanipatCooperative Bank is the first bank in the cooperative sector in the country to introduce sound practices
of corporate governance to ensure transparency in its functioning. During the last three years, the following
initiatives have been taken to follow good corporate practices by addressing a range of issues such as,
protection of shareholders rights, enhancing shareholders value, disclosure requirements, integrity of
accounting practices and strengthening the control system.
The employees of the bank can now expose any wrongdoing of the top management of the bank without any
fear of reprisal. The Board of Management of the bank in its meeting held on 30.06.2003 has accepted the
system for protection of whistleblowers adopted in USA and in Indian Companies like Wipro and Infosys. This
facility would give protection to the staff, who expose irregularities, corruption, mal-practices etc. by the top
management of the bank. Under this system, where any staff of the bank discovers information, which he
believes shows serious mal-practice, impropriety, abuse or wrongdoing, then the information should be
disclosed without fear of reprisal. Following the spirit of the Sarbanes Oxley Act of the USA, which envisages
protection for whistleblowers (staff who expose corruption), a similar policy has been adopted to enable the
employees to raise concern about any irregularity and impropriety at an early stage and in the right way
without fear of victimisation, subsequent discrimination or disadvantage. OSCB has become the first bank in
the country to have adopted such a policy. Employees are normally the first to realise that there are irregular or
illegal practices being followed by any colleague/ management. Hence a policy which affords protection to the
employees who expose irregularities, corruption, malpractice etc. will go a long way in ensuring transparent
management, setting standards, which the DCCBs shall be encouraged to emulate.
Besides, the PanipatCooperative Bank has adopted the following sound practices of corporate governance.

1. Timely audit of accounts has been ensured. The audit for the year 2005-06 was completed by
30.06.06.
2. The bank has been paying uninterrupted dividend to the shareholders.
3. Common coding of accounting heads has been introduced in the State to integrate the accounting
practices of the OSCB and all affiliated DCCBs. This has facilitated the computerisation process in the
Central Cooperative Banks.
4. Organisation of annual customer meets to understand their changed perception and to reorient the
policies and procedures of the bank. Such meets are also being organised at the level of the DCCBs as
well as the PACS.
5. A transparent transfer policy have been formulated and adopted in the bank. Transfers are now being
effected on the basis of the policy without any other consideration.
6. A bi-monthly house journal entitled Sampark is published with effect from January, 2001, which not
only provides a forum to the employees to express their views, but also the management is also able to
explain the justification for taking important decisions.
7. Each branch of the OSCB, DCCBs as well as the PACS is being visited by a supervisory officer every
month to inspect the functioning and also impart guidance.
8. Loans Manual for the Bank has been prepared by NABCON- the consultancy arm of NABARD.
9. Systems Audit of the Bank has been conducted by M/s Haribhakti & Co., Mumbai.
10. A comprehensive HRD policy is being evolved for the Bank by the National Institute of Bank
Management, Pune.

CHAPTER 2

2.1 INTRODUCTION OF BANK


banks in India were founded by Indian entrepreneurs and visionaries in the preindependence era to provide financial assistance to traders, agriculturists and budding Indian
industrialists. The origin of banking in India can be traced back to the last decades of the 18th
century. The General Bank of India and the Bank of Hindustan, which started in 1786 were the first
banks in India. Both the banks are now defunct. The oldest bank in existence in India at the moment
is the State Bank of India. The State Bank of India came into existence in 1806. At that time it was
known as the Bank of Calcutta. SBI is presently the largest commercial bank in the country. The role
of central banking in India is looked by the Reserve Bank of India, which in 1935 formally took over
these responsibilities from the then Imperial Bank of India. Reserve Bank was nationalized in 1947
and was given broader powers. In 1969, 14 largest commercial banks were nationalized followed by
six next largest in 1980. But with adoption of economic liberalization in 1991, private banking was
age in allowed. The commercial banking structure in India consists of: Scheduled Commercial Banks
and Unscheduled Banks. Scheduled commercial Banks constitute those banks, which have been
included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI includes only those
banks in this schedule, which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

1949 : Enactment of Banking Regulation Act.

1955 : Nationalization of State Bank of India.

1959 : Nationalization of SBI subsidiaries.

1961 : Insurance cover extended to deposits.

1969 : Nationalization of 14 major banks.

1971 : Creation of credit guarantee corporation.

1975 : Creation of regional rural banks.

1980 : Nationalization of seven banks with deposits over 200 crore.

Banking during British period before independence.


Ancient Hindu scriptures provided enough evidence of the existence of money lending business
in India. Mahajans, Shroffs, Shakers, etc. were enjoyed in banking business. In the beginning of the
18th century, the East India Company set up a few commercial banks on modern lines. In 1970, first
India bank knows as the Bank of Hindustan was started and was closed down twenty years later.
Later on bank of Hindustan and Bengal Bank also came into existence in 1809. Bank of Hindustan
carried on the business till 1900. The first joint stock bank, namely the General Bank of India was
established in 1786. Later, the East India Company started three presidency banks with government
participation. These were:

1). Bank of Calcutta (1806)


2). The Bank of Bombay (1840)
3). The Bank of Madras (1843)

These banks had the financial participation by the government also.


During the 18th century, these entire banks were also opened by Agency house in Madras and
Calcutta. These entire banks failed, the need of banking regulation in India was seriously felt. As a
result companies Act, 1833 was brought into force. The impact of the agency house got slowly
reduced.

Allahbad Bank came into existence in 1865 and Alliance Bank of Simla in 1875. The first
purely Indian joint stock bank known as the Oudh Commericial Bank was set up in 1906 encouraged
the Indian entrepreneurs to start many new banks. There were as many 648 commercial banks in
India by the end of 1947. As many as 161 banks failed in quick succession during 1913-1914 and
peoples faith in the banks system was shaken. Thus there was a great need of an institution to control
and regulate banking in the country. As a result, the reserve bank if India was established as the
central bank of country in 1935 under an act called Reserve Bank of India Act. Later on with the
passage of the banking regulation Act passed in 1949. RBI was brought under government control.
Under this act, RBL was conferred with supervision and control of the banks and licensing powers
and the authority to conduct inspections was also given to it.
The three presiding banks were amalgamated in 1920 and new bank called Imperial Bank of
India, this bank played an important role in the economy of the country. After independence, it was
nationalized in 1955 and renamed as the State Bank of India. The SBI opened a large number of
branches in rural and semi-urban areas. The RBI acts as a centralized body monitoring any
discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian
financial sector. The nationalized banks (i.e. government owned banks) continue to dominate the
India banking arena. Industry estimates indicated that out of 274 commercial banks operating in
India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid
also includes 24 foreign banks that have started their operations here.

2.2 Definition of Bank and Banking

Bank

Banking

2.3Types of Banks

3)Specialized Banks:

There are specialized forms of banks catering to some special needs with

unique nature of activities.


,foreign exchange bank, individual banks

These are ,thus

2.4 STRUCTURE OF RESERVE BANK OF INDIA:

Reserve bank of India

Commercial
Bank

Foreign bank

Development
bank

Indian bank

Exim bank

State cooperative
bank

RRBS
Public sector

Private
sector

NABARD

State Bank

Nationalized

Indian banking system comprises of both organized and unorganized banks. Unorganized banking
includes indigenous bankers and village moneylenders. Organized banking includes the followed,

Reserve bank of India (central bank)

Commercial banks

Development banks

Exim banks

Panipat co-operative banks

Regional rural banks

Land development banks

National Bank for agriculture and rural development (NABARD)

2.5 Introduction of panipat co-operative bank

MEANING OF PANIPAT CO-OPERATIVE BANK:


Panipat co-operative bank are based on the value of self-responsibility,Democracy,equit and
solidarity.In the world panipat co-operative bank activities was stated in December1844 in Britician
social development is the role aim of the Co-operative activities.

A. DEFINITION:

Co-operation is an effective self-reliance done by organism.


-Sir Horas Planket.
Co-operation is the step taken for equal profit or loss under mutual management.Management by
mutually using their own resources and factors willingly.
-Herick M. T.

B. PANIPAT CO-OPERATIVE BANK:


The word of co-operative was (being) recognized in 1904 (when the co-operative societies Act 1904
was enacted) When the co-operative credit society was passed. The activities of co-operative was
started with the main purpose of providing the advance to the member with a low interest rates, and
providing advance to farmer and lower class and to make the people interested in savings.

2.6 Role of banks in Economics development

2.6

STRUCTURE OF CO-OPERATIVE BANK:

1) State co-operative bank:


The state panipat co-operative bank is a federation of central panipat co-operative banks and acts as a
watchdog of the panipat co-operative banking structure in the state. Its funds are obtained from share
capital from Reserve Bank of India.The state panipat co-operative banks lend money to central panipat
co-operative banks and primary societies and not directly to farmers The principle one being the
institution of provincial panipat co-operative banks to serve as apex banks in the hierarch of cooperative pyramid.
2) central co-operative bank:
There are the federations of primary credit societies in a district and are of two types those having a
membership of primary societies only and those having a membership of societies as well as
individuals. The funds of the bank consist of share capital, deposits and overdrafts from state panipat
co-operative banks and joint stocks. These banks finance member societies within the limits of the
borrowing capacity of societies. They also conduct all the business of a ointstock bank.

3)

primary panipat co-operative bank:

Primary panipat co-operative bank is also known as credit society. The primary co-operative credit
society is an association of borrows and number derived from the share capital and deposits of and
members and loans from central panipat co-operative banks. The borrowing power of the members well
as of the society is fixed. The loans are given to members for the purpose of cattle, folder fertilizer,
pesticides, implements, etc

There are three types of panipat co-operative banks and the urban panipat co-operative bank is one
type of panipat co-operative bank, panipat bank is urban panipat co-operative bank.

FUNCTION OF PANIPAT CO-OPERATIVE BANK:


Panipat co-operative banks are formed on the principle of Co-operative to Extend Credit
facilities to farmers and small scale industrial concerns and promotes in general the habit of
thrift and self help among the low and middle income groups of the society.
Co-operative has been putting more weight on their lending activities than on deposit
mobilization.

The main function of Co-operative credit society was to provide cheap credit to the members
who are small people with small means and small needs and finance.
The Panipat co-operative banks have a three tier set up. The state panipat co-operative bank,
while central district panipat co-operative banks function at the district level and primary
credit societies work of the village level.
Panipat co-operative banks proceed on the principle of co-operation. Panipat co-operative
banks maintain the cash reserve and liquid assets in relation to deposit only.
To arrange the programs regarding the Economic welfare of its members.
This bank supervises the functioning of primary credit society and gives training, guidance
and advice to the employee of credit society only.

CHAPTER 3

3.1 Research problem:

3.2Objective of financial department:


To analyses the present financial system of Panipat Panipat co-operative bank Ltd.
To study financial strength and weakness of Panipat Panipat co-operative bank Ltd.

To get basis for financial planning, analysis and decision making through financial
information.
3.3 Period of coverage:
I have chooses the period of coverage for the financial years i.e. 2006-2007 to 2010-2011

3.4 Source of Data:


Primary data: primary data will collect through discussion with executive & staff of the
bank.
Secondary data: annual report, magazine, and data from the bank borrow itself.

3.5 Scope of the Study:

3.6 Research Design


There are three main types of research design
1. Exploratory design
In exploratory design the emphasis is on discovery of new ideas. The main objective of this
design is to generate new idea. The two ways of doing exploratory design is the focus group
interview & the case studies.
2. Descriptive studies

When a researcher is interested in knowing the characteristics of certain group such as age,
gender, education level, occupation, income, descriptive may be necessary. Descriptive studies
are factual and are very simple.
3. Causal design
As the name implies a causal design investigates the cause and effect relationship between
two or more variables. The two types of the causal designs are:
a) Natural experiments
b) Controlled experiments
The study report Analysis of a financial Statement is consider the descriptive research design.

3.7 Important of study:

3.8 Limitation of study:

3.9 Review of literature

CHAPTER 4

4.1Introduction of Financial Statement analysis:

4.2 Objectives of Financial Statement:

4.3 Limitation of Financial Statement :

4.4 Financial Statement of Panipat co-operative bank:

1] Profit & Loss Account:

Profit & Loss Account


Particulars

2009-2010

2010-2011

Interest on deposit and Borrowing

9,44,99,998.76

12,06,75,486.13

Salaries allowance & Provident Fund

2,57,25,152

2,73,86,632

Direct fees

-----------------

-----------------

Rent ,Tax ,Insurance, Electricity

35,29,646.49

49,93,714.50

Law Fees

1,83,161

2,43,011.84

Postage ,Telegram ,Telephone Expences

11,85,577.24

13,75,327.87

Audit Fee

4,80,090

3,95,517

Depreciation Fund

91,37,412.80

1,22,72,036

Stationary ,Printing

36,91,981.73

21,81,375.83

other Expense

2,80,33,592

4,32,28,357.91

Income Tax

1,87,02,860

2,05,00,000

Profit

3,14,80,142.42

4,05,77,583.46

Total

21,66,49,615.25

27,38,29,042.46

Interest & Discount

19,97,72,678

25,68,04,312.37

Commission Exchange

34,28,143.35

42,51,304.65

Donation

-----------------

------------------

Other Income

93,91,392

1,27,73,425.52

Total

21,66,49,615.25

27,38,29,042.46

Expences

Income

Panipat panipat co-operative bank Ltd.


of balance sheet for year 2009-2010 & 2010-2011.

Balance Sheet

Particular
Liability
Share capital
Reserve fund
Subsidiary Fund
Deposit:
- Fixed Deposit
- Saving Deposit
- Current Deposit
Call & Short Time Deposit
Borrowing
Bills Payable
Interest Overdue
Interest payable
Other liability
Profit and Loss A/c
Total
Assets
Cash
Bank
Call & Short time Investment
Investment
Subsidiary Fund Invest
Loans and Advances
- Short term
- Moderate term
- Long term
Interest receivable
Bills Receivable
Branch adjustment
Building premises
Furniture & Fixture
Other Asset
Total

2009-2010

2010-2011

5,91,32,500
40,99,81,617
-----

7,28,65,400
26,07,59,206.11

79,05,92,313
93,86,53,426.84
76,00,70,549
93,43,53,950.77
55,49,46,207
71,67,94,729.78
--------44,24,274
38,27,498
5,80,51,785
335,61,147.97
13,60,00,222
14,97,24,949
7,88,68,009
9,82,13,380.70
3,14,80,142
4,05,77,583.46
2,88,35,47,600 3,44,23,72,149.87
8,65,50,365
48,83,88,452
----117,95,03,022
-----

8,82,44,531.98
35,34,85,910.13
1,67,11,43,767

31,56,02,553
31,43,99,482.44
30,46,65,311
38,75,76,985.41
32,85,98,967
45,68,21,245.85
9,22,37,735
7,41,53,273.97
44,24,274
38,27,498
----2,45,05,702
3,71,90,031.97
1,16,70,414
1,78,92,950.86
4,74,00,800
3,68,36,472.26
2,88,35,47,600 3,44,23,72,149.87

CHAPTER 5

INRTODUCTION OF FINANCIAL DEPARTMENT:Meaning:According to Himpton John A financial statement is an organized collection of data according to
logical and consistent accounting procedures. Its purpose is to convey an understanding of some
financial aspects of a business firm. It may show a position at a moment of time as in the case of a
balance sheet, or may reveal a series of activities over a given period of time as in the case on income
statement.

TOOLS OF FINANCIAL STATEMENTS


As Kennedy and McMuller have,said,The analysis and interpretation of financial statements are an
attempt to determine the significance and meaning of the financial statement data so that a forecast
may be made of the prospects for further earnings, ability to pay interest and debt maturities both
current and long term and probability of a sound dividend policy .

The analysis consists of the study of inter relationship between various items comprised in
financial statements to determine whether the earnings and the financial position of the company are
satisfactory. A number of devices are used in the analysis of financial statements, some of which are
as follows:
(i)
(ii)
(iii)
(iv)
(v)
(vi)

Comparative Statements
Common size statements
Trend Percentages
Cash flow Analysis
Fund flow Analysis
Ratio Analysis

Comparative financial statement:


When financial statements of a few years are presented in columnar form, it indicates the trend of
changes taking place in business. The method of presenting both financial statements in columnar
form and of judging the trend of profitability and financial condition of business is known as
Comparative Statement Analysis. Generally form, though theoretically any other statement can be do
presented
If useful data is to be gathered from the analysis of financial statement, one must go beyond a single
years balance sheet and profit and loss account, as they suffer from following limitations.
(1) The balance sheet or profit and loss account of a single year does not show the nature and trend of
changes taking place in business.
(2) It does not give any idea about the position of incomes and expenses of current year in
comparison to those of previous year.
(3) Balance sheet of a single period fails to disclose whether the financial position of a company is
improving or deteriorating.
(4) If the reader of financial statements is interested in knowing financial and operating trends over a
period of years, it is necessary that the figures for different years, must be Presented together.
The comparative statements may also be presented in a manner that will show the percentages of
various figures with some significant item e.g. the percentage of gross profit to sales of the
previous year may be presented along with such percentage for the current year.
(a)Comparative Profit and Loss Accounts: The various items of profit and loss accounts may
be presented side by side which will show the trend of increasing or decreasing expenses or

incomes. Such changes may be shown in absolute figures of in percentage forms. While
examining the comparative examined.
(b) Comparative balance sheet: the change taking place in assets and liabilities over a period of
years are revealed by comparative balance sheets. Such comparative balance sheets may show
absolute figures or even percentage of various figures may be shown. Such percentages are
generally based on value of total assets.

Fund flow statement:


In a statement which shown the inflow and outflow of funds during the year, the meaning of the word
fund is working capital. The objective of preparing such a statement is to show to the management
and other interested parties, what funds have come into the business and how they have been applied.
A balance sheet is a static statement showing the conditions of assets and liabilities on a particular
date only. While the flow statement is dynamic statement showing changes that have taken place
during the year. E.g. if funds have been raised during the year by issuing further shares, the amount is
shown as source of funds in the statement. If any fixed asset is bought during the year, it is shown as
use or application of funds. The fund statement is therefore necessary to supplement the two basis
financial statement
This statement consist of two parts
i)

Sources of Funds

ii)

Application of Funds

Uses of fund flow statement


1. The fund flow statement acts as supplementary statement to the traditional financial statement
viz., balance sheet and profit and loss account
2. The funds flow statement furnishes the information about the sources from which the
company has mobilized the resources or fund during the year;
3. It also presents the detail which spell out clearly the manner in which the mobilized fund has
been utilized or employed during the year;
4. It also sheds light on the efficiency of management in the working capital management.

Cash flow statement:

The fund flow statement indicates changes in working capital which have taken place during the
year. But the management is more interested in the changes in cash inflow and outflow in the short
run. It is a historical statement which indicates the cash inflows and outflows during the last year and
would guide the management in framing policy regarding cash management. The cash budget shows
the projected inflows and outflows of cash for the future budget period, which the cash flow
statement is prepared on the basis of the basis of historical financial statements.
Use of cash flow statement
1. Cash flow statement facilitates to prepare sound financial policies. It also helps to evaluate the
current cash position.
2. A projected cash flow statement can be prepared in order to know the future cash position of a
concern so as to enable a firm to plan and coordinate its financial operations properly.
3. it helps the management in taking short-term financial decisions.
4. The statement explains the causes for poor cash position in spite of substantial profits in firms
by throwing light on various applications of cash made by the firm.

Common size Statements:Financial statements when read with absolute figures are not easily understandable. They are even
misleading the figures shown in profit & loss account and balance sheet are converted to percentage
so as to establish each element to the total figure of the statement and there statement are called
commonsize statements. When balance sheet and profit & loss account of the same concern for
several years or when balance sheet and profit & loss account of two or more than two concerns for
the same year are converted in to percentage form and presented as such, they are known as
comparative commonsize statement.
Interpretation:Profit & loss account figure is assumed to be equal to 100 and all other figure or expressed as
percentage to sales. Similarly, in balance sheet the total of assets and liability is taken as 100 and all
the figures are expressed as percentage of the total. The statement prepared is called Commonsize
Statement.

Trend Analysis:-

The comparative and Commonsize statements suffer from a major limitation that is absence of basic
standard to indicate whether the proportion of an item is normal or abnormal. Trend analysis
overcomes this limitation. This technique is also an important and useful of financial statement
analysis. The calculation of trend ratio involves the ascertainment of arithmetical relationship which
each item of several years to the same of base year.
This trend ratio is calculated only for some important item which can be logically converted with
other.

Common size statement analysis of Profit and loss account for year 2010 & 2011 in Panipat
panipat co-operative bank Ltd.

Profit and loss account


Particular
Expense
Interest on deposit and borrowing
Salaries allowance & Provident Fund
Director Fees
Rent, Tax, Insurance, Electricity
Law Fees
Postage, Telegram, Telephone Exp.s
Audit Fee
Depreciation Fund
Stationary, Printing
Other Expense
Income Tax
Profit
Total
Income
Interest & Discount
Commission Exchange

2009-2010

2010-2011

43.62
11.87
----1.62
0.085
0.55
0.22
4.22
1.70
12.94
8.63
14.53
100.00

44.07
10.00
1.82
0.09
0.05
0.14
4.48
0.80
15.80
7.50
14.82
100.00

92.21
1.58

93.78
1.55

Donation
Non Banking Income
Other Income
Total

--------6.21
100.00

----------4.67
100.00

Common size statement analysis of balance sheet for year 2010 & 2011 in Panipat panipat cooperative bank Ltd.

Balance Sheet
Particular
Liability
Share capital
Reserve fund
Subsidiary Fund
Deposit:
- Fixed Deposit
- Saving Deposit
- Current Deposit
Call and short term loans
Borrowing
Bills Payable
Interest Overdue
Interest payable
Other liability
Profit and Loss A/c
Total
Assets
Cash
Bank
Call & Short time Investment
Investment
Subsidiary Fund Invest
Loans and Advances
Interest receivable
Bills Receivable
Branch adjustment
Building premises
Furniture & Fixture
Other Asset
Total

2009-2010

2010-2011

2.05
7.81
-----

2.12
7.57
------

37.55
36.10
26.36
--------0.15
2.01
4.73
2.74
1.09
100.00

27.27
27.14
20.82
----------0.11
0.97
4.35
2.85
1.18
100.00

3.00
16.94
----40.91
----32.91
3.20
0.15
----0.85
0.40
1.64
100.00

2.56
10.27
-----48.55
-----33.57
2.15
0.11
-----1.08
0.52
1.07
100.00

Comparative statement analysis of profit and loss account for year 2010 & 2011 in Panipat
panipat co-operative bank Ltd.

Profit and loss account


Particular

2009-2010

2010-2011

Absolute

Expense
Interest on deposit and borrowing
Salaries allowance & Provident Fund

2010-2011

2010-2011

9,44,99,998
2,57,25,152

12,06,75,486
2,73,86,632

2,61,75,488
16,61,480

27.70
6.46

Director Fees
Rent, Tax, Insurance, Electricity
Law Fees

35,29,643,
1,83,161

49,93,714
2,43,012

14,64,071
59,851

41.48
32.68

Postage, Telegram, Telephone Exp.


Audit Fee
Depreciation Fund
Stationary, Printing

11,85,577
4,80,090
91,37,412
36,91,981

13,75,328
3,95,517
1,22,72,036
21,81,376

1,89,751
(84,573)
31,34,624
(15,10,605)

16.01
(17.62)
34.30
(40.92)

Other Expense
Income Tax
Profit
Total

2,80,33,592
1,87,02,592
3,14,80,142
21,66,49,615

4,32,28,358 1,51,94,766
2,05,00,000
17,97,408
4,05,77,583
90,97,441
27,38,29,042 5,71,79,427

54.20
9.61
28.90
126.39

Income
Interest & Discount
Commission Exchange

19,97,72,678
34,28,143

25,68,04,312
42,51,305

5,70,31,634
8,23,162

28.55
24.01

Donation
Non Banking Income
Other Income
Total

--------1,34,48,792
21,66,49,615

1,27,73,426
27,38,29,042

--------(6,75,366)
5,71,79,427

(5.02)
126.39

Comparative statement analysis of balance sheet for year 2010 & 2011 in Panipat panipat cooperative bank Ltd.

Balance Sheet
Particular
Liability
Share capital
Reserve fund
Subsidiary Fund
Deposit:
- Fixed Deposit
- Saving Deposit
- Current Deposit
Call & Short Time Deposit

2009-2010

2010-2011

Absolute

2010

2010

5,91,32,500
22,53,32,015
-----

7,28,65,400 1,37,32,900
23.22
26,07,59,206
3,54,27,191 15.72
-----

79,05,92,313
76,00,70,549
55,49,46,207
-----

93,86,53,427
14,80,61,114
18.73
93,43,53,951 17,42,83,402
22.92
71,67,94,730
16,18,48,523
29.16
-----

Borrowing
Bills Payable
Interest Overdue
Interest payable
Other liability
Profit and Loss A/c
Total
Assets
Cash
Bank
Call & Short time Investment
Investment
Subsidiary Fund Invest
Loans and Advances
- Short term
- Moderate term
- Long term
Interest receivable
Bills Receivable
Branch adjustment
Building premises
Furniture & Fixture
Other Asset
Total

--------44,24,274
38,27,498
(5,96,776)
(13.49)
5,80,51,785
3,35,61,148 (2,44,90,637)
(42.19)
13,60,00,222
14,97,24,949
1,37,24,727
10.09
7,88,68,009
9,82,13,381 1,93,45,372
24.53
3,14,80,142
4,05,77,583 90,97,441
28.90
2,88,35,47,600 3,44,23,72,150
55,88,24,550
119.40
8,65,50,365
48,83,88,452
----117,95,03,022
-----

8,82,44,532 16,94,167
1.96
35,34,85,910 (13,49,02,542) (0.27)
----1,67,11,43,767 49,16,40,745
41.70
-----

31,56,02,553
30,46,65,311
32,85,98,967
9,22,37,735
44,24,274
----2,45,05,702

31,43,99,482
(12,03,071) (O.38)
38,75,76,985 8,29,11,674
27.21
45,68,21,246
12,82,22,279 39.02
7,41,53,274
(1,80,84,461)
(19.61)
38,27,498
(5,96,776)
(13.49)
----3,71,90,032 1,26,84,330
51.76

1,16,70,414
4,74,00,800
2,88,35,47,600

1,78,92,951 62,22,537
53.31
3,68,36,472
(1,05,64,328) (22.29)
3,44,23,72,150
55,88,24,550 119.40

RATIO ANALYSIS:
A Ratio is only a comparison of the numerator with the denominator. The term ratio refers to the
numerical or quantitative relationship between two figures, and obtained by dividing the former by
the latter. Ratios are designed to show how one number is related to another. It is worked out by
dividing one number by another.
Ratio analysis is an important and age old technique of financial analysis. Ratios are relative form of
financial data and very useful technique to cheque upon the efficiency of firm. Some ratios indicate
trend or progress or downfall of the firm.
MEANING OF RATIO:A ratio is only a comparison of the numerator with the denominator. The tern ratio reefers to the
numerical or quantitative relationship between two figures and obtained by dividing the former by the
latter.
Ratio analysis is an important and age old technique of financial analysis. The data given in financial
statements ratio are relative form of financial data and very useful techniques to cheek upon the
efficiency of a firm. Some ratio indicates the trend or progress or downfall of the firm.

Classification of Ratios:Ratio can be classified into different categories depending upon the basic of classification as under:
Profit & Loss Account Ratio:-

In this ratio accumulated on the basis of all items of the profit & loss account only Ex. Net profit
ratio, operating profit ratio, expenses ratio.
Balance sheet Ratio:In this ratios calculated on the basis of the figures of balance sheet only.Ex. Current ratio, liquid ratio,
debt-equity ratio, proprietary ratio.
Composite Ratio or inter statement ratio:
In this ratio is the based on figures of profit & loss account as well as balance sheet.Ex. Fixed assets
turnover ratio.

IMPORTANCE OF RATIO ANALYSIS:


Aid to measure general Efficiency: ratios enable the mass of accounting data to be summarized and
simplified. They act as an index of the efficiency of the enterprise. As such they serve as an
instrument of management control.
Aid to measure financial solvency: ratios are useful tools in the hands of management and other
concerned to evaluate the firms performance over a period of time by comparing the present ratio
with the past ones. They point out firms liquidity position to meet its short term obligations and long
term solvency.
Facilitate decision-making: it throws light on the degree of efficiency of the management and
utilization of the assets and that is why it is called surveyor of efficiency. They help management in
decision-making.
Aid in intra firm comparison: intra firm comparisons are facilitated. It is an instrument for
diagnosis of financial health of an enterprise. It facilitates the management to know whether the
firms financial position is improving or deteriorating by setting a trend with the help of ratios.
Evaluation of efficiency: ratio analysis is an effective instrument which, when properly used, is
useful to assess important characteristics of business liquidity, solvency, profitability etc. a study of
these aspects may enable conclusions to be drawn relating to capabilities of business.
effective tool: ratio analysis helps in making effective control of the business measuring
performance, control of cost etc, effective control is the keynote of better management. Ratio ensures

secrecy.

LIMITATION OF RATIO ANALYSIS:


Ratio analysis a widely used tool of financial analysis, it is because ratios are simple and easy to
understand. But they must be used very carefully. They suffer from various limitations:
Differences in Definitions: Comparisons are made difficult due to differences in definitions of
various financial terms. Lack of standard formula for working out ratios makes it difficult to compare
them. They are worked out on the basis of different items in different industries.
Limitation of accounting records: ratio analysis is based on financial statements which are
themselves subject to limitations. Thus, ratios calculated on the figures given in the financial;
statements, also suffers from similar limitations.
Qualitative factors are ignored: ratios are tools of quantitative analysis only and normally
qualitative factors which may generally influence the conclusions derived are ignored while
computing ratios.
Limited use of single ratio: a single ratio would not be able to convey anything. Ratios can be useful
only when they are computed in a sufficient large number. If too many ratios are calculated, they are
likely to confuse instead of revealing meaningful conclusions.
Background is overlooked: when inter-firm comparison is made, they differ substantially in age,
size, nature of product etc. when an inter-firm comparison is made, these factors are not considered.
Therefore, ratio analysis cannot give satisfactory results.

Arithmetical Window dressing: window-dressing means manipulation of account in a way so as to


conceal vital facts and present the statements in a way to show better position than what it actually is.
By doing so, it is possible to cover up bad financial position. Therefore, ratios based on such figures
are not reliable.
Lack of proper standards: it is very difficult to ascertain the standard ratio in order to make proper
comparison. Because, it differs from firm to firm, industry to industry. Apart from this, it may have
happened that in one firm, a current of 2:1 is found to be quite satisfactory, whereas in another firm
2.5:1 may be unsatisfactory. Again, a high current ratio may not necessarily mean liquid position
when current assets large inventory or inventory consisting of obsolete items.

CURRENT RATIO:

Meaning:
Current ratio is the most common ratio for measuring liquidity. Being related to working capital
analysis it is also called the working capital ratio. Current ratio expresses relationship between current
assets and current liabilities
Purpose:
The current ratio of a firm measures in short term solvency. i.e. its ability to meet short term
obligation. As a measure of short term current financial liquidity.
It is calculated by dividing current asset by current liabilities
Current Ratio =

Current assets
Current Liabilities

Particulars

Current

Current Asset
Cash
Bank
Advance
Other Asset
Bills Receivable
Interest
Total
Current Liability
Bills Payable
Interest Payable
Saving Deposit
Current Deposit
Interest Overdue
Other Liability
Total

2009-10

2010-2011

8,65,50,366
48,83,88,452
----4,74,00,800
44,24,274
9,22,37,736

8,82,44,531
35,34,85,910
3,68,36,472
38,27,498
1,67,11,43,767

71,90,01,628

2,14,97,10,680

44,24,274
13,60,00,222
76,00,70,549
55,49,46,207
5,80,51,785
7,88,68,009

38,27,498
14,97,24,949
93,43,53,950
71,67,94,730
335,61,148
9,82,13,380

1,59,23,61,046

1,93,64,75,655

Ratio : =
71,90,01,628

2,14,97,10,680
1,59,23,61,046
= 0.45

1,93,64,75,655
=1.11

Interpretation:
here, it shows that the bank has been decrease in 2010 current ratio is 0.45:1 to in 2011 current ratio is
1.11 which is not satisfactory so, can be Improved by better turnover and profit.

CASH POSITION RATIO:


Meaning:
It is a variation of quick ratio. When liquidity is highly restricted in terms of cash and cash equivalent,
this ratio should be relationship between cash and near cash items on the one hand.
Purpose:
The purpose of computing the ratio to measure e more rigorous of a firms liquidity position.
Particulars
Cash
Marketable Securities
Total
Current Liabilities

Cash Position Ratio =

2009-2010
8,65,50,365
117,95,03,022
1,26,60,53,387
1,59,23,61,046

2010-2011
8,82,44,532
1,67,11,43,767
1759388300

1,93,64,75,655

Cash + Marketable Securities


Current Liabilities

1,26,60,53,388

1,93,64,75,655

1,59,23,61,046
=

0.80

1,75,93,88,300

0.91

PROPRIETARY RATIO:

Meaning:
This relates the shareholders fund to total assets. It is a variant of the debt equity ratio. This ratio
shows the long term or future solvency of the business. It is calculated by dividing shareholders funds
by the total asset.
Purpose:
The purpose of proprietary ratio is indicate available to creditors and general financial strength of the
firm.
Proprietary Ratio= Shareholders Fund
Total Asset
Particulars
Shareholders Fund
Capital
Reserve
Subsidiary Fund
P&L Account
Total
Total Asset

2009-2010

2010-2011

5,91,3,2500
9,65,59,375
----3,14,80,142
53,20,74,401

7,28,65,400
10,49,50,670
-------4,05,77,583

2,88,35,47,600

Proprietary Ratio

32,64,98,777

53,20,74,401

2,26,90,56,555

2,88,35,47,600

0.14:1

0.18:1

Interpretation:
The proprietary ratio is increase by 0.13:1 to 0.17:1 in the 2010 which is shown by the general
strength of the bank or company. It is very important to creditors as it helps them to find out the
proportion of shareholders funds in the total assets used in the business. In this ratio is always down
from the good position and low ratio indicate greater risk to creditors. A ratio below 50% may be
alarming for the creditors and heavily lose for company and its account is liquidation.

DEBT EQUITY RATIO:

Meaning:
The financing of total asset of a business concern is done by owners equity as well as outside debts.
This ratio indicates the relative proportions of debt and equity in financing the asset of a firm.

It is also known as external internal equity ratio. Debt equity ratio is determined to ascertain
soundness of the long term financial policies of a company.

Debt Equity Ratio

Long Term Debt


Shareholders Fund

Particulars
Long Term Debt
Fixed Deposit
Other Borrowing
Total

79,05,92,313
----79,05,92,313

Shareholders Fund

46,91,14,117

Debt Equity Ratio:


=

Interpretation:

2009-2010

57, 90, 47,751

2010-2011

79,05,92,313

43,10,13,335

46,91,14,117

= 1.34

= 1.69

Debt equity ratio has been increase in year 2009 to 2010 that is 11.05 and 13.37 respectively. It
indicates the margin of safety to long term creditors. A high ratio shows the claim of creditors is
greater than those of owners.

SOLVENCY RATIO:
Meaning:

It is also known as debt ratio. It is difference of 100 and proprietary ratio. This

ratio is found out between total asset and external liabilities of the company.
Purpose:
This generally refers to the capacity or ability of the business to meet its short term and long term
obligations. If a company in a position to pay its long term liabilities easily it is said to possess long
term solvency.
Solvency Ratio

Outside Liabilities
Total Asset

Total Liability Shareholder Fund


Total Assets

Particulars
Outside Liability
Total Liabilities
Shareholders Fund
Total

2,88,35,47,600
9,06,12,642
2,79,29,34,958

Total Asset

2,88,35,47,600

Solvency Ratio:

2009-2010

2,18,64,17,069

2010-2011

2,26,90,56,555
= 0.96:1

2,79,29,34,958
2,88,35,47,600

0.97:1

Interpretation:
In this ratio total assets are for more than external liabilities the company is treated solvent. In
solvency ratio in 2009, 0.976% decrease in 2010 0.979:1 it means that outside liability is always less
than total assets.

NET PROFIT RATIO:


Meaning:
It is also called net profit to sales ratio (= profit margin). The profit margin is indicative of
managements ability to operate the business with sufficient success not only to recover from revenue
of the period, the expense of operating the business and the cost of borrowed fund.
Purpose:
this ratio is used to measure the overall profitability and hence it is very useful to proprietors. It is an
index of efficiency and profitability when used with gross profit ratio and operational efficiency of
the concern.

Net Profit Ratio

Net Sales

100

Net Profit
Particulars
Net Sales
Interest Receivable
Commission
Total

2009-2010
9,22,37,735
34,28,143
9,56,65,878

Net Profit

3,14,80,142

2010-2011

Net Profit Ratio:


=

3,02,24,486

3,14,80,142

7,55,32,888

9,56,65,878

= 40.02

= 32.91

Interpretation:
In this ratio, in 2009, 40.02% and 2010 decrease in 2010, 32.91%. It is more useful for the further
condition of the firm.

Expenses Ratio:

This ratio indicates the efficiency or otherwise in the incurrence of administrative expense. It
is expressed as a percentage.
The purpose of this ratio is that income is rise than expenditure it is also raised.

Particular
Total expenses
Staff, salaries, allowance
Director fees
Legal fees
Rent, tax, insurance
Postage, telegram
Audit fees
Stationary, printing
Other expenses
Total
Total income

Expenses ratio =

2009-2010
2,57,25,152
1,83,161
35,29,646
11,85,577
4,80,090
36,91,981
2,80,33,593
6,28,29,199
21,66,49,615

Total expenses

X 100

Total incomes

= 6,68,56,334 X 100
19,92,78,464
= 33.55%

= 6,28,29,200 X 100
21,66,49,615
=

29.00%

2010-2011

RETURN ON EQUITY HOLDER FUND:


Meaning:
The term net profits as used here, means net income after payment of interest and tax including net
non-operating income (i.e. non-operating income minus non-operating expenses). It is the final
income that is available for distribution as dividends to shareholders. Shareholders funds include
both preference and equity share capital and all reserves and surplus belonging to shareholders.
Return of Share Holder equity

Net Profit X

100

Shareholders Fund

Particulars
Net Profit
Shareholders Fund
Return

2009-2010
3,14,80,142
46,91,14,117

2010-2011

of Share Holder

equity:
=

3,02,24,486

3,14,80,142

43,10,13,335

46,91,14,117

=7.01%

=6.71%

Interpretation:
In this ratio, in 2009, 57.66% and 2010 decrease in 2010, 53.24%. The term net profit as used here
means net income after payment of interest and tax including net non operating income. It is the final
income that is available for distribution as dividend to shareholders.

CAPITAL TURNOVER RATIO


Sometimes the efficiency and effectiveness of the operations are judged by comparing the cost of
sales or sales with amount of capital invested in the business and not with assets held in the business,
though in both cases the same result is expected. Capital invested in the business may be classified as
long term and short term capital or as fixed capital and working capital or owned capital and loaned
capital. All capital turnovers are calculated to study the uses of various types of capital.
Ratio

Net Profit
Capital Employed

Particular
Net Sales

2009-2010
9,56,65,878

2010-2011

Capital Employed
Equity
Reserves
Total

5,91,32,500
40,99,81,617
46,91,14,117

Return on Asset =
7,55,32,888

9,56,65,878

26,60,49,805

46,91,14,117

= 28.39%

= 20.39%

Interpretation:
In this ratio, decrease the percentage in 2009, 28.39% to in 2010, 20.39%. Lower ratio shows lower
profit and higher ratio shows higher profit.

CREDITORS TURNOVER RATIO:


This is also known as accounts payable or creditors velocity. Creditors turnovers indicates the number
of times the payable rotate in a year. It signifies the credit period enjoyed by the firm paying creditors.
Accounts payable include sundry creditors and bills payable.
Ratio

Creditors + Interest payable + bills payable

Particular
Creditors
Fixed Deposit
Saving Deposit
Current Deposit
Bills payable
Interest Payable
Total
Interest on deposit and
borrowing
Interest on deposit and borrowing

2009-2010
79,05,92,313
76,00,70,549
55,49,46,207
44,24,274
13,60,00,222
2,10,56,09,070
13,60,00,222

2010-2011

Creditor turnover ratio:

1,72,06,78,495
10,68,37,058
= 16.11

2,10,56,09,070
13,60,00,222

= 15.48

Interpretation:
In this ratio creditors are decrease in all year. In year 2009, 20.51 times and increase in year
2010 is 22.08 times. It will be good for the bank. A higher ratio shows that the creditors are not paid
in time.

CHAPTER 6

FINDINGS
Panipat Panipat co-operative bank have good image in the co-operatice society because
panipat Panipat co-operative bank provides speedy, effective and good interest rate on
deposit.
Bank has continuously got the audit class A in every year.
The varchha panipat co-operative bank get award in district co-operative society for
providing good service to their customer in 2000 2001 and Rashtriya Viskas Rattan gold
award from International Integration and growth, and highest blood donation collection
award in 2008 once more best co-op bank in surat dist. For the year 2007-2008.
The profit of the bank is at increasing rate. By honoring the social welfare concept the bank
is providing to the society welfare at a large scale.
The bank has good market potential so that it can enhance or expand its business in future.
Net profit of bank is in 2009, 3.02 crores and in increasing manner in 2010 i.e. 3.15 crores
Share capital is in 2009, 5.24 crores and in 2010 5.91 crores. Working capital in 2009,
226.96 crores and in 2010 279.11 crores.

SUGGESTIONS

Panipat Panipat co-operative bank is required to increase its network.


Panipat Panipat co-operative bank is required to open his branches out of city.
Bank is needed to provide ATM facility for his account holder, so the account holder can
easily receive money from his account.
In the bank there should be a proper man power planning.

SWOT ANALYSIS:STRNGTH: The staff member of the concern is well-experienced and trained enough.
The bank is providing training to new employees.
The accounts of share holders as well as customers are fully secured by insurance.
The bank has good brand image.
The turnover of men power in the bank is very less and staff members are well satisfied with
the facilities given to them.
The profit of the bank is at increasing rate.
Customers are serviced in the best manner.
By honoring the social welfare concept the bank is providing to the society welfare at a large
scale.

WEAKNESS:-

There is lack of linking performance.


In recent competitive era, varachha bank not provide some modern facilities like ATM service,
debit card, credit card and even not website on intent for show the growth of bank.
Rules for deposits and loans are very strict opening deposit is high and they require perfect
documents, it can be limitation for slow inflow of deposits.
OPPORTUNITY: The bank has good market potential so that it can enhance or expand its business in future.
The bank has to start its branches in the areas like City Light, Adajan, and Sachin and out of
city or state should pick up the opportunity to discover the market.
THREAT: If there will be any union, it will cause problem for the bank.
If there will be any opening of new bank with more facilities than other banks, it will hinder
the progress of the bank.
If there will any political pressure on the banking sector it will lead to decrease in productivity
and efficiency.
The Bank should provide rent to peons who go daily from branch to head office. So that the
efficiency of peons of working will increase and they will be satisfied.

CHAPTER 7

Profit & Loss Account


Particulars

2009-2010

2010-2011

Interest on deposit and Borrowing

9,44,99,998.76

12,06,75,486.13

Salaries allowance & Provident Fund

2,57,25,152

2,73,86,632

Direct fees

-----------------

-----------------

Rent ,Tax ,Insurance, Electricity

35,29,646.49

49,93,714.50

Law Fees

1,83,161

2,43,011.84

Postage ,Telegram ,Telephone Expences

11,85,577.24

13,75,327.87

Audit Fee

4,80,090

3,95,517

Depreciation Fund

91,37,412.80

1,22,72,036

Stationary ,Printing

36,91,981.73

21,81,375.83

other Expense

2,80,33,592

4,32,28,357.91

Income Tax

1,87,02,860

2,05,00,000

Profit

3,14,80,142.42

4,05,77,583.46

Total

21,66,49,615.25

27,38,29,042.46

Interest & Discount

19,97,72,678

25,68,04,312.37

Commission Exchange

34,28,143.35

42,51,304.65

Donation

-----------------

------------------

Other Income

93,91,392

1,27,73,425.52

Total

21,66,49,615.25

27,38,29,042.46

Expences

Income

Panipat panipat co-operative bank Ltd.


of balance sheet for year 2009-2010 & 2010-2011.

Balance Sheet

Particular
Liability
Share capital
Reserve fund
Subsidiary Fund
Deposit:
- Fixed Deposit
- Saving Deposit
- Current Deposit
Call & Short Time Deposit
Borrowing
Bills Payable
Interest Overdue
Interest payable
Other liability
Profit and Loss A/c
Total
Assets
Cash
Bank
Call & Short time Investment
Investment
Subsidiary Fund Invest
Loans and Advances
- Short term
- Moderate term
- Long term
Interest receivable
Bills Receivable
Branch adjustment
Building premises
Furniture & Fixture
Other Asset
Total

2009-2010

2010-2011

5,91,32,500
40,99,81,617
-----

7,28,65,400
26,07,59,206.11

79,05,92,313
93,86,53,426.84
76,00,70,549
93,43,53,950.77
55,49,46,207
71,67,94,729.78
--------44,24,274
38,27,498
5,80,51,785
335,61,147.97
13,60,00,222
14,97,24,949
7,88,68,009
9,82,13,380.70
3,14,80,142
4,05,77,583.46
2,88,35,47,600 3,44,23,72,149.87
8,65,50,365
48,83,88,452
----117,95,03,022
-----

8,82,44,531.98
35,34,85,910.13
1,67,11,43,767

31,56,02,553
31,43,99,482.44
30,46,65,311
38,75,76,985.41
32,85,98,967
45,68,21,245.85
9,22,37,735
7,41,53,273.97
44,24,274
38,27,498
----2,45,05,702
3,71,90,031.97
1,16,70,414
1,78,92,950.86
4,74,00,800
3,68,36,472.26
2,88,35,47,600 3,44,23,72,149.87

Web Site / Books name

Author name

www.google.com
www.varachhabank.com
www.rbi.com
Management Accounting

Website
Website
Website
By R. S. N. Pillai Bagavathi

Management Accounting

By Ravi M. Kishore

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