A PROJECT REPORT On FINANCIAL ANALYSIS of NAGPUR NAGRIK SAHAKARI BANK LTD.

NAGPUR

Submitted in partial fulfillment in the award of the degree of

MASTER OF BUSINESS ADMINISTRATION Of Rastrasant Tukdoji Maharaj Nagpur University, Nagpur

Submitted By Miss. Monali K. Taklikar Guided By Prof. Director Dr. Co-ordinator

G.H. Raisoni Institute Of Engineering & Technology For Women Nagpur 2010 - 2011

DECLARATION I Hereby declare that the project entitled "Financial Analysis of Nagpur Nagrik Sahakari Bank Nagpur" is the record of the original work done by me and no part of it has been submitted earlier by me to any institute for the award of any degree or diploma. The source of material and data used in this study have been duly acknowledged.

Miss M. K. Taklikar

ACKOWLEDGEMENT I acknowledge with sincere gratitude to all those who helped me to make this project a success. I wish them-to express my special thanks to Mr. N. Nagratnam throughout the project. I am also thankful to Prof. have been possible. I am also grateful to our Director Mr. & co-ordinator Prof.. for their full support of co-operation. my project guide who has been a guiding source an inspiration without her help, this project work could not and all the management of Nagpur Nagrik Sahakari Bank for their support

Miss Monali Taklikar

CONTENTS
Chapter No. Company Profile 1 Introduction History Organization Structure Objectives of Study Hypothesis Research Methodology Financial Analysis Introduction to financial analysis Meaning Financial Statement 5 Type of Financial Statement Types of Financial Analysis Steps involved in statement analysis Classification Tools of Financial Analysis Data Analysis Comparative Analysis 6 Common size Financial Analysis Trend Analysis Ratio Analysis 7 8 9 10 11 Conclusions Suggestion Limitation Bibliography Annexure CHAPTERS

2 3 4

Chapter -I COMPANY PROFILE

COMPANY PROFILE INTRODUCTION

Information regarding the Bank :Name of the Bank Nagpur Nagrik Sahakari Bank Ltd. Nagpur

Head Office Address Date & Registration No Date & No. of R.B.I. License Area of work No. of Branches Membership Regular Nominal Members of amalgamated Paid up share capital Total Reserve Advances Deposits Saving Current Fixed Loan Unsecured Secured

79, Dr. Ambedkar Squar, Central Avenue, Nagpur-8 M.S.C.S./C.R./126/2001 Date: 21-03-2001 UBD/MM/959-P Date 7-01-1988 Maharashtra , Madhyapradesh & Chattisgadh (Raipur & Durg) 34 including Head Office

60521 10513 2817 Rs. 1493.46 Lacks Rs 5559.41 Lacks Rs.37096.53Lakhs Rs. 18747.29 Lacks Rs.5601.61 Lacks Rs. 42017.82 Lacks

Rs. 1056.49 Lacks Rs. 36040.04 Lacks

Total % of Primary Section Total % of weaker section Borrowing

57.37% 9.05% 43.096 Lacks

Total % of Non-Performi8ng Assets (Gross) 11.38% Total % of Non-Performi8ng Assets (Net) 2.46% Investment (Other) Overdue Audit Classification (2009-2010) Profit Net profit for the year Working Capital Staff 493 158 335 . Rs. 234.12 Lacks Rs. 75294.63 Lacks Rs 19966.50 Lacks Rs.1535.18 Lacks 1 Grade

Head Staff Other Staff

History
Nagpur Nagrik Sahakari Bank is established under M.S. Co-operative . Act 1960 dated 20/6/1962 & registration no- M.S.C.S./C.R./126/2001 dated 21-03-2001 as Reserve bank license no. UBD/MM/959 P dated 7th January 1988 to improve the financial strength of general people of Nagpur Dist. In the beginning shares were collected from the people. Nagpur Nagrik Sahakari Bank developed rapidly as compare to other Banks in Nagpur Dist. Because of lot efforts taken by founder members as well as Co-operation of people. Therefore it is popular bank as UCB is the bank to people, for the people & by the people. Now a days Bank has developed their work also. Now it is not restricted to only Nagpur dist. But it also developed in Madhyapradesh. Now a days 4 branches of Nagpur Nagrik Sahakari Bank are working in Madhyapradesh. Bank has 31 branches & Head Office. It is the superfast growing co-operative bank. Mr. Lahu Kindarle is the staff members of bank got award of Dr. Babasaheb Ambedkar Pheloship Award by hand of president. Nagpur Nagrik Sahakari Bank started Core Banking system today bank is developed fully in paperless bank. The own data centre of bank is working in Head office of bank, where all branches are connected online . It is developed bank in co-operative sector.

Reserve:On comparison of 31st march 2009 the reserve of 31st march 2010 is 5896.39 lacks. Economic wealth of bank is depends on reserve . maximum limit of loan is decided by the new plan of reserve bank of India and minimum C.R.A.R. (capital to risk asset ratio) is up to 9% C.R.A.R. of Nagpur Nagrik Sahakari Bank is 14.91% This shows that bank is on progressive way.

Deposit:Deposit of bank increases regularly deposit of last year i.e. 2009 was 53845.80 lacks and in 2010 it increases upto 58192.80 lacks i.e. deposit increases by 4346.89 lacks .it is possible by the help and faith of bank members and depositors. Nagpur Nagrik Sahakary Bank give insurance facility on all deposit up to 1 lacks.

2006

2007

2008

2009

20

Loan :Bank provide loan facility on minimum rate of interest . bank decides rate of interest on loan which is suitable approved by R.B.I. In year 2009 total loan was 29397.48 lacks and after receiving balance amount of loan, total loan in year 2010 is 32894.28 lacks. In history, this year bank provides loan on minimum rate of interest than all previous years. Bank provides loan facility on 2% rate of interest for purchase of solar system. for all classes people and

Working Capital :Working capital of the bank is Rs. 75294.63 lacks in the year ended 31st march 2010.

Profit :Profit increases every year. Year 2009-2010 total profit is Rs. 221.43 lacks. On comparison last year profit 48.50. is increased by Rs.

2006

2007

2008

2009

20

ORGANISATION STRUCTURE
Directors

Chief Executive Officer

Asst. Chief Executive Officer

Admn. Deptt. Officer Clerk Typist Peon

A/c Deptt. Officer Accountant Clerk Peon

Loan Deptt. Loan Officer Junior officer Inspector Clerk Peon

Audit Deptt. Officer Clerk Peon

Chapter-II OBJECTIVES

OBJECTIVES
The soundness and intrinsic worth of a Bank is known only by financial analysis. The financial & operational efficiency and profitability of the bank also known by financial analysis. These factors can be examined by study of a financial analysis. It enables us to have a better understanding of Bank. An investor as well as shareholder need to know the performance of the company. Objectives of study are To study the financial performance of bank To observe the trends analysis for interpretation of financial standard.
To make compares of financial statement

For meaningful interpretation. To judge the credit worthiness of the Bank.

Chapter - III Hypothesis

Hypothesis
Hypothesis is experimental assumption made in order to draw out & test its logical consequences. Hypothesis provides the focal point of research. They also effect the manner in which tests musts be conducted in the analysis of data & indirectly the quality of data which is required for the analysis. In most types of research, the development of working hypothesis plays an important role. Hypothesis should be very specific & limited to the piece of research in hand because it has to be tested. The role of Hypothesis to guide the researcher. It also indicated the type of

data required & the type of methods of data analysis to be used. After analysis the data as stated above, the researcher is in a position to test the Hypothesis. Hypothesis testing will result in either excepting the Hypothesis or rejecting it. 1) Bank has proper sources of earning. 2) Bank has sufficient capital fund for cash transactions. 3) Ratios goes to understanding the financial position of bank.

Chapter IV RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research is the application of scientific method to add the present pool of knowledge. Financial research is a systematic design, collection and analysis of data and finding relevance to specific financial aspect of the Bank. Data are facts, figures & other relevant materials, for study & analysis. Data is primarily of two kinds:1) Primary dada 2) Secondary data
1) Primary data: -

Data that is collected for the specific purpose at hand is called as primary data. Primary data collection methods can also be classified as: I. II. III. IV. V. Observation Interviewing Experimentation Simulation Projective technique

2) Secondary data :-

Any data that is available prior to the commencement of the research project is secondary data, and there for secondary data is also called as historical data. Secondary data collection saves valuable time, effort and money.

Sources of secondary data : Sources of secondary data can be classified as I. II. published sources unpublished sources

For my project Financial Analysis, I used secondary data of Nagpur Nagrik Sahakari Bank. The data is collected through financial statement like:a) Annual Report b) Balance sheet c) Profit & Loss Along with the above sources the interaction with official of the Bank like Manager of account section also reveled some useful information and guidance required for project report. The calculation were done for three consecutive years viz. 2007-2008, 2008-2009, 2009-2010. Financial analysis itself is technique to assess the financial soundness of the bank. Method like comparison, ratio analysis, trend analysis, fund flow analysis also help to study the financial analysis & interpretation of the bank

Chapter V FINANCIAL ANALYSIS

FINANCIAL ANALYSIS
The basis for financial analysis planning and decision making is financial information. A business firm prepares its final account viz.. balance sheet} profit and loss account which provides useful financial information for the purpose of decision making. Financial information is needed to predict, compare and evaluate the firm's earning ability. The former statement viz. Profit and loss account shows the operating activities of the concern and later Balance sheet depicts the balance value of the acquired asset and of liability at a particular point of time. However these statements do not disclose all of the necessary and relevant information. For the purpose of obtaining the material and relevant information necessary for ascertaining the financial strength and weakness of an enterprise It is necessary to analysis the data depicted in the financial statement. Meaning:The financial statement is an organization collection data according to logical and consistent accounting procedure. Its purpose is to convey an understanding of some financial aspect of business firm. It may show position at a moment of time as in the case of balance sheet or may reveal a series of activities over a given period of time as in the case of an Income statement. Thus financial statement generally refers to two basic statements 1. Income statement and 2. Balance statement of course a business may also prepare 3. Statement of retained earning and 4. Statement of changes in financial position addition to the above two Statement.

1) Income Statement:- (Profit and loss account ) :The income statement of generally considered to be the most useful of all financial statement. It explains what was happened to business as a result of operation between two balance sheet dates. For this purpose it matches the revenues and cost incurred in the process of earning revenues and shows the net profit earned or loss suffered during a particular period. 2) Balance Sheet :It is a statement a financial position of a business at a specified moment of time. It represent all asset owned by the business at a particular moment of time and claim of the owners and outsiders against those asset at that time It is in a way snapshot of the financial condition of the business at that time. 3) Statement of retained earning : The term retained earning means the accumulated excess of earning over losses and dividends. The balance shown by income statement is transferred the balance sheet through this statement. After making necessary appropriation it is thus a connecting link between Balance sheet and income statement. It is fundamentally a display of things that have caused the beginning of the period retained earning balance to be changed in to the one shown in the end of the period of balance sheet. 4) Statement of changes in financial position :The Balance sheet shows the financial condition of the business at a particular moment of time while the income statement disclose the result It of operations of business over a period of time. However for better understanding of the affairs of the business it is essential to identify the movement of working capital of cash in and out of the business. This

information is available in the statement of changes in financial position of the business. The statement may emphasize any of the following aspects relating to change in financial position of the business. 1) Change in the firm's working capital 2) Change in the firm's cash position 3) Changes in the firm's total financial position. Nature of Financial statement:According to the American institute of certified public accountant, financial statement reflect a combination of recorded facts, accounting conventions and personal judgment, and the judgment and the convention applied affect them materially. This implied that data exhibited in the financial statement are affected by recorded fact, accounting conventions and personal judgment. 1) Recorded facts:The term recorded facts means facts which have been recorded in the accounting books which have not been recorded in the financial books are not depicted in financial statements. . However material, for example fixed asset are shown at cost irrespective of their market or replacement price since such price is not recorded in the books. 2) Accounting convention:Imply certain fundamental accounting principle which have been satisfied by long usage, for example on account of the conventions of conservatism provision is made for expected losses but expected profit are ignored this means that the real financial position of the business may be much better than what has been shown by financial statement.

3) Personal Judgment : Personal judgment has also an important bearing on the financial statement for example, the choice of selecting methods of depreciation lies on the account similarly the mode of amortization of fictitious asset also depends on the personal judgment or the accounting. 4) Ignore substance:Financial statements in India are prepared and presented in the form as prescribed by law. As a result many substantial facts go unrecorded for example the assets taken by an organization on financial lease basis are not shown in the balance sheet through they are used for revenue generation. 5) Over generalization:Financial statement present data in a generalized form and not as per the requirement of specific users viz. share holder, employees, government potential investor, lenders etc Hence they can not meet the Specific data requirement of the users. They are only general purpose statement. Type of Financial Analysis Financial analysis can be classified in two different categories depend upon i) Material used and ii) The the modus operandi or analysis.

1) On the basis of Material used :According to this basis financial analysis can be of two types: i) External analysis:This analysis is done by those who are outsiders for the business. The term outsiders include investors, credit agencies government agencies and other creditors who have no access to the internal records of the Bank. These persons mainly depend upon the published financial statement. Their analysis serves only a limited purpose. ii) Internal analysis:This analysis is done by persons who have accesses to the books of account and other information related to the business. Such as analysis can therefore be done by executive and employees of the organization or by officers appointed for this purpose by the government or the court under power vested in them. The analysis is done depending upon the objectives to be achieved through this analysis. 2) On the basis of modus operandi:According to their financial analysis can also be of two types i) Horizontal analysis:In case of this type of analysis financial statement for a number of years are reviewed or analyzed The current year figures are compared with standard or base year. The analysis statement usually contents figures for two or more years and the changes are shown regarding each item from the base year usually info the form of percentage such an analysis gives the management considerable insight into levels and areas of strength and weakness since this type of analysis is based on the data from year to year rather than on one date it is also termed as "Dynamic Analysis"

ii) Vertical analysis:In case of this type of analysis a study is made of the quantitative relationship of the various items in the financial statements on a particular date. For example, the ratio of different items or cost for a particular period may be calculated with sales for that period. Steps involved in financial statement analysis. The analysis or the financial statement requires 1. Methodical classification of the data given in the financial statement 2. Comparison or the various inter-connected figures with each other by different tools or financial analysis Methodical classification:In order to have a meaningful analysis it is necessary that figures should be arranged properly. Usually instead of the two-cotton (T-form) statement as ordinarily prepared. The statement is prepared in single (vertical) column form which should throw up significant figures by adding or subtracting. This also facilities showing the figures of a number of a firm or number of year side by side for compression purpose. Tools or Financial analysis:A financial analysis can adopt the following tools for analysis of the financial statement. i) Comparative financial statement:Comparative financial statements are those statement which have been designed in a way so as to provide time perspective to the consideration of various element of financial position embodied in such statements. I n these statement, figures for two or more period are placed made by side to facilitate compression.

Both income statement and Balance sheet can be prepared in the form of comparative financial statement. Comparative income statement :The income statement discloses net profit or net loss on account of operations. A comparative income statement will show the absolute figures for two or more periods. The absolute change from one period to another and if desired change in terms of percentage since the figure for two or more period are shown by side by side. The reader can quickly ascertain whether sales are increased or decreased whether cost of sales has increased or decreased etc. Thus only a reading of data included the comparative income statement will be helpful in deriving the meaningful conclusion. Comparative balance sheet:Comparative balance sheet as on two or more different date can be used for comparing assets and is on present position. liability and finding any increased or decreased in those items. Thus while in single balance sheet the emphasis It is on change in the comparative balance sheet. Such a balance sheet is very useful in studying the trend in enterprise. Comparative final statement has been designed to provide time perspective to the consideration of various elements or financial position imbedded in such statement. In this statement figures for two or more period are placed side by side for comparison. It is very useful in involving trend in enterprises Common size Financial Statement are those in which figures reported are converted in % to some common base in the balance sheet total asset or liability.

Trend Analysis :Trend % immensely helpful in making comparative study of financial statement for several year. The method of calculating trend % involves the calculation of % relationship that each item bear to the same item in the base year. Any year can be taken as base year it is usually the aerialist year. The method of trend % is useful analytical device for management since by substitution of .percentage of large amount, The gravity and reliability are achieved. They are usually calculated only for major problem.

Chapter VI DATA ANALYSIS

Balance
Liability Amt (In Cr) 2008 Authorized capital @ Rs. 50/- each Subscribed capital @ Rs. 50/- each Paid up capital @ Rs. 50/- each Reserve fund & other Reserve Deposits Borrowings Bills for collection being bills receivable Branches Adjustment Overdue Interest Reserve Interest Accrued & payable Other Liabilities Profit & Loss 20 10.425 10.425 51.159 538.458 0.431 1.807 0.629 15.352 6.127 16.254 1.729 12.32 58.964 581.938 0.015 1.546 0.331 14.025 1.455 16.577 2.214 14.935 55.594 663.667 1.501 12.502 2.044 15.188 2.341 Amt (In Cr) 2009 20 12.32 Amt (In Cr) 2010 20 14.935

Sheet
Asset Amt (In Cr) 2008 Amt (In Cr) 2009 94.133 34.866 196.832 328.943 18.205 1.546 1.244 3.603 3.669 1.349 0.378 2.949 689.376 Amt (In Cr) 2010 84.010 53.885 223.942 370.965 16.814 1.501 0.323 0.822 5.142 4.682 0.537 0.322 2.668 767.771

Cash Balances with other Bank Money at call & Short Notice Investments Advances Interest Receivable Bills Receivable being bills for Collection Branch Adjustment Goodwill (on Amalgamation) Land & Building Furniture & Fixtures Computes Vehicle other Assets

73.606 38.105 199.665 293.975 20.249 1.807 1.740 3.634 2.537 2.079 0.317 4.658 642.371

642.371

689.376

767.771

Profit & loss Account

Expenditure Interest Salaries Allowances & Provident Fund Directors & Local Committee Members fees & Allowances Rent Taxes, Insurance, lighting etc Law Charge Postage, Telegrams & telephone charges Auditors Fees Depreciation on & Repairs in property Stationary, printing Advertisements Amortization & Depreciation on Govt. Securities Other Expenditure Income Tax Transfer to Investment Fluctuation Reserve Provisions & Contingencies Balance of Profit Amt (In Cr) 2008 29.657 10.174 0.048 1.524 0.085 0.222 0.135 2.157 0.524 2.828 1.089 0.022 1.521 1.729 51.709 Amt (In Cr) 2009 37.878 16.015 0.051 1.875 0.181 0.23 0.165 2.602 0.417 5.087 1.135 1.226 0.438 2.214 76.961 Amt (In Cr) 2010 40.483 13.841 0.046 2.326 0.320 0.427 0.139 2.795 0.456 2.788 1.337 (1.278) 0.191 2.341 66.681 51.709 76.961 66.681 Income Interest & Discount Dividend Commission & Exchange Profit on Sale of Investment Other Receipts Amt (In Cr) 2008 45.734 0.154 0.743 5.078 Amt (In Cr) 2009 54.005 1.363 0.669 18.024 2.901 Amt (In Cr) 2010 57.234 1.185 0.750 0.343 7.168

I Comparative Analysis Of Balance Sheet

2009 Asset
Cash Deposit in other Bank Money at call & short notice Investment Advances Interest receivable Bills receivable being bills for collection Branch Adjustment Land & Building Good will Furniture & fixture Computers Vehicle Other Asset Liability Issue & paid up capital Reserve & Other Fund Deposit Borrowing Bills for collection being bills receivable Branch adjustment Outstanding interest payable Other liabilities Overdue interest reserve Profit & loss account 94.133 34.866 196.832 328.943 18.205 1.546 3.603 1.244 3.669 1.349 0.378 2.949 12.32 58.964 581.938 0.015 1.546 0.331 1.455 16.577 14.025 2.214 223.942 370.965 16.814 1.501 0.323 5.142 0.822 4.682 0.537 0.322 2.668 14.935 55.594 663.667 1.501 2.044 15.188 12.502 2.341 84.010 53.885 10.123 19.019 27.11 42.02 -1.391 -0.045 0.323 1.539 -0.422 1.013 -0.841 -0.056 -0.281 2.615 -3.37 81.729 -0.015 -0.045 -0.331 0.589 -1.389 -1.523 0.127 10.75 54.55 13.77 12.77 -0.08 -2.91 32.3 42.71 -33.92 27.61 -62.34 -14.81 -9.48 21.23 -5.72 14.04 -1.5 -2.91 -3.31 40.48 -8.38 -1086 5.74

2010

Absolute % change

Interpretation :- From the comparative analysis of balance sheet statement it is observed that cash increases from 2009 to 2010 by absolute in value 10.123 Cr. At an y percentage it is 10.75% profit also increases from 2009 to 2010 by absolute in value Rs. 0.127 Cr. In percentage it is 5.74%. Bills receivable being bills for collection reduce from 2009 to 2010 by absolute in value 0.045 Cr. In percentage it is reduce 2.91%. Other asset decreases from 2009 to 2010. Similarly all the items of Balance sheet can be judge & can be found out absolute change in it as well as percentage change.

II) Comparative Analysis of Profit and Loss Account

2009 Amt. in cr. Income Interest & Discount Dividend Commission & Exchange Profit on Sale of Investment Other Receipts Total Income Expenses Interest Salaries, Allowances & Provident Fund Directors & Local Committee members fees and allowances Rent, Taxes, insurance, lighting etc. Law charges Postage Telegrams & Telephone charges Depreciation & repairs in Property Stationary, Printing & Advertisement Auditors fees Amortization & Depreciation on Govt. securities Other Expenses Provision & Contingencies. Income Tax Transfer to Investment Reserve Net Profit 54.005 1.363 0.669 18.024 2.901 76.962 37.878 16.015 0.051 1.875 0.181 0.23 2.602 0.417 0.165 5.087 1.135 0.438 1.226 Fluctuation 2.214 2.341 2010 Amt. in cr. 57.234 1.185 0.750 0.343 7.168 66.68 40.483 13.841 0.046 2.326 0.320 0.427 2.795 0.456 0.139 2.788 1.337 0.191 (1.278) Absolute change 3.229 -0.178 0.081 -17.681 4.267 -10.282 2.605 -2.174 -0.005 0.451 0.139 0.197 0.193 0.039 -0.026 -2.299 0.202 -0.247 -2.504 0.127 5.98 -13.06 12.11 -98.10 147.09 54.02 6.88 -13.57 -9.80 24.05 76.80 85.65 7.42 9.35 -15.76 -45.19 17.79 -56.39 -204.24 5.74 %

Interpretation:From Balance sheet it is concludes that absolute that absolute increased in Net profit is 0.127 cr. And in % in is increase by 5.74% In the year 2010 this is a Profit & Profit increased in next year.

I) Common size Financial Statement of Balance Sheet

2008 Asset Cash Balance with other Bank Money at call & short notice Investment Advances Interest receivable Bills receivable being bills for collection Goodwill Land & Building Furniture & fixture Computers Vehicle Other asset Liability Issue & Paid up capital Reserve & Other Fund Deposits Borrowings Bills for collection being bills receivable Branch adjustment Outstanding interest payable Overdue interest reserve Other liabilities Profit & loss account 11.92% 5.16% 29.78% 48.70% 2.6% 0.33% 0.32% 0.34% 0.35% 0.08% 0.07% 0.80% 100% 1.60% 9.39% 83.58% 0.02% 0.33% 0.14% 2.13% 2.15% 2.33% 0.32% 100% 2009 8.56% 5.37% 27.80% 49.73% 2.69% 0.52% 0.29% 0.37% 0.42% 0.12% 0.06% 1.27% 100% 1.69% 9.11% 82.74% 0.01% 0.52% 0.17% 0.07% 0.07% 3.05% 3.32% 100% 2010 11.48% 5.94% 31.15% 45.86% 3.16% 1.81% 0.27% 0.57% 0.40% 0.32% 0.05% 0.73% 100% 1.63% 7.98% 83.99% 0.07% 0.28% 0.10% 0.96% 2.39% 2.54% 0.27% 100%

Interpretation :same.

The above statement shows that though in absolute

terms, figures showing difference we may get percentage approximately In this analysis cash decreases from 2008 to 2009 by (11.92%-8.56%) 3.36% & cash increases from 2009 to 2010 by (11.48%8.56%) 2.92%. Investment also decrease also decreases 2008 to 2009 by 1.38% & increases from 2009 to 2010 by 3.35% similarly all items are compared with base of 100 as total assets.

In liability paid up capital increases from 2008 to 2009 by 0.09% & decreases from 2009 to 2010 by 006%. Reserve Fund decreases from 2008 to 2010 by 1.13%. as other liability also less as compared to previous year. Thus all the items of Asset & Liability cpmpare with the base of hundred of total asset & total liability.

II)

Common size Financial Statement of Profit & Loss Account

2008 2009 90.86% 1.75% 7.38% 100% 54.27% 22.90% 0.10 3.33% 0.21% 0.46% 2.56% 0.85% 0.27% 7.15% 2.17% 1.20% 0.69% 3.83% 100% 2010 88.45% 0.30% 1.44% 9.82% 100% 57.75% 19.68% 0.09 2.95% 0.16% 0.43% 4.17% 1.01% 0.26% 5.47% 2.11% 2.94% 0.04% 3.34% 100%

Income Interest & Discount Dividend Commission & Exchange Other Receipts Expenses Interest Salaries, Allowances & Provident Fund Directors & Local Committee

82.83% 0.001% 1.92% 15.50% 100% 51.35% 20.52% 0.09

members fees in allowances Rent, Taxes, insurance, lighting etc. 2.78% Law charges 0.31% Postage Telegrams & Telephone 0.52% charges Depreciation & repairs in Property Stationary, Printing & Advertisement Auditors fees Amortization & Depreciation on Govt. securities Other Expenses Provision & Contingencies. Income Tax Transfer to Investment Fluctuation Reserve Balance of Profit 1.73% 0.77% 0.30% 2.71% 2.16% 13.14% 0.04% 3.57% 100%

Interpretation :- In common size financial statement of profit and loss account all the expenses of 2008, 2009 and 2010 are calculated in the base of hundred. In above statement it shows previous expenses to the base of hundred as a total expenses. Like interest in year 2008 from 2008 to 2009 by 0.1% & 2009 to 2010 by 0.05% In Income side interest increase from 2008 to 2009 by 8.03% & reduce from 2009 to 2010 by 2.41% it is 51.35% but in 2009 it is 54.27 and 2010 it is 57.75% Law charges reduce

I) Trend Analysis Balance Sheet Asset 2008 Cash 73.606 Deposits with other 38.105 Bank Money at call & short notice Investment Advance Interest receivable Bills receivable being bills for collection Branch adjustment Good will (on Amalgamation) Land & Building Furniture & fixture Computers Vehicle Other Assets 199.665 Trend Base on 2008 2009 2010 2008 2009 2010 94.133 84.010 100 74.24 122.92 100 107.76 146.87 34.866 53.885 100 96.74 133.41

196.83 223.94 100 2 2 328.94 370.96 100 293.975 3 5 20.249 18.205 16.814 100 100 1.807 1.740 3.634 2.537 2.079 0.317 4.658 1.546 1.244 3.603 3.669 1.349 0.378 2.949 1.501 0.323 0.822 5.142 4.682 0.537 0.322 2.668 100 100 100 100 100 100 100

105.81 119.71 106.64 154.37 165.79 110.18

92.11 182.63 174 113.05 125.36 149.88 90.80 215.54 146.22 496.18 94.07

165.61 166.33

Liability Paid up capital Reserve & other reserve Deposits Borrowings Bills or collection being bills receivable Branch adjustment Outstanding interest payable Overdue Interest reserve Other Liabilities Profit and loss account

2008 10.425 51.159

2009 12.32 58.964

2010 14.935 55.594

Trend Base on 2008 2008 2009 2010 100 109.99 129.96 100 100.61 128.20 102.39 127.94 73.68 78.33 70.23

538.458 581.938 663.667 100 0.431 0.015 100 100 1.807 0.629 6.127 15.352 16.254 1.729 1.546 0.331 1.455 14.025 16.577 2.214 1.501 2.044 12.502 15.188 2.341 100 100 100 100 100

131.73 55.94 957.34 99.55 142.33

135.84 138.92 103.66 109.22

Interpretation :- from above analysis it is concluded that with base of year 2008, in year 2009 and 2010 almost all assets of bank like cash, deposits with other bank, advances, interest receivable, land and building, furniture and fixture, computers has been increased gradually but investment decrease in the year 2009 but increases in the year 2008. Bill receivable being bills for collection increases in 2009 than 2008 but decreases in the year 2010 than 2009 but more than 2008.

II) Trend Analysis of Profit & Loss Account Trend Base on 2008 2008 2009 2010 2008 2009 Income Interest & Discount Dividend Commission & Exchange

2010 124.51 116.05 98.93

45.734 0.154 0.743

54.005 1.363 0.669

57.234 1.185 0.750

100 100 100

106.77 125.36 100

Profit on Sale of Investment

Other Receipts Total Income Expenses Interest Salaries Allowances

5.078
51.709

18.024 2.901
76.966

0.343 7.168
66.68

100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

109 46.04 487.17 102.18 107.89 11.58 115.56 64.49 85.65 143.4 106.71 86.67 254.95 96.77 8.82 1655.56 2840.23 -2353.06

78.25 73.88 491.62 130.20 111.71 12.63 123.50 61.59 96.52 178.56 152.77 100 135.64 113.44 26.10 30.87 1273.53 -781.91

29.657
&

37.878 16.015 0.051 1.875 0.181 0.23 2.602 0.417 0.165 5.087 1.135 0.438 1.226 74.752

40.483 13.841 0.046 2.326 0.320 0.427 2.795 0.456 0.139 2.788 1.337 0.191 (1.278) 64.339

Provident Fund Directors & Local Committee Members fees & Allowances Rent Taxes, Insurance, lighting etc Law Charge Postage, Telegrams

10.174 0.048 1.524 0.085

&

telephone charges Depreciation on & Repairs in property Stationary, printing Advertisements Auditors fees Amortization & Depreciation on Govt. Securities Other Expenditure Provisions & Contingencies Income Tax Transfer to Investment Fluctuation Reserve Total Expenses Net Profit

0.222 2.157 0.524 0.135 2.828 1.089 1.521 0.022 49.98

1.729

2.214

2.341

Interpretation :- In above analysis consider base period as 2008 an values of all items of profit and loss account of 2010 is treated as 100 and trend is calculated. It is found that interest & Discount, commission all increasing in trend as comparative to 2008. Most of the expenses are also increases.
In general in Total income is of 2008 100 Total Expenses of 2008 - 100 2009 487.17 2010
491.62

2009 2840.23 2010 1273.53

Cash flow statement for the year ended 31st march 2010
I Cash flow from operating activities Net Profit Adjustment for: Depreciation charged for the year Provisions & Contingencies ( Profit ) / Loss on sale of fixed assets Trans from BDDR Investment Fluctuation Reserve Excess Provision written back Account Written Off Goodwill written off Income Tax Provision Operating Profit Before Working Capital Changes Adjustments for Decrease /( Increase) in Funds Decrease / ( Increase) in Call Money Decrease / ( Increase) in investments Decrease / ( Increase ) in fixed deposits Decrease/(Increase) in Advances Decrease/(lncrease) in borrowings (Decrease) / Increase in Deposits Decrease/(Increase) in other assets Increase / (Decrease) in other Liabilities & Provisions Payment debited to reserve fund (Merger) Income tax Paid Net cash flow from operating activities Cash flow from investing activities Purchase of Fixed assets Proceeds from sale of Fixed assets Net cash used in investing activities Cash flow from financial activities Proceeds from issue of shares Dividend paid Net cash flow from financial activities Net increase/(decrease) in cash & cash equivalents Cash & cash equivalent on 01-04-2009 Cash & cash equivalent on 31-03-2010 2009-10 22143 20676 43859 126 0 30804 (720) 0 4148 12262 133298 2008-09 17293 18364 10859 10 (26500) 0 (2241) 794 4350 221 23150

859 0 28324 60747 (354891) (4158) 434688 10339 (48784) (486) (3981) 255955 (33493) 266 (33227) 18960 (8065) 10895 233623 821388 1055011

15994 150000 (563661) (42282) (350881) 3754 1075330 9302 49400 (343) (221) 392897 (47511) 3 (47508) 12158 (6812) 2441 350735 470653 821388

II

III

IV V VI

PROJECTED PROFIT & LOSS ACCOUNT FOR THE FINANCIAL YEAR 2010-2011

RATIO ANALYSIS A) LIQUIDITY RATIO 1) Current Ratio = Current Asset Current Liability

=
For the year 2008

73.606+ 38.105+ 20.249+ 1.807+ 4.658 1.807+ 0.629+ 15.352+ 6.127+ 16.254 138.455 = 40.169
= 3.447 : 1

=
For the year 2009

9 4.1 3 3+ 34.8 6 6+ 1 8.2 0 5+ 1.5 4 6+ 2.94 9 1 .5 4 6 0 .3 3 1 1 4 .0 25 1.2 5 5 1 6 .5 7 7 + + + + = 1 5 16 9 9 . 3 3.7 3 4

= 4.497 : 1

For the year 2010

84 .010 + 53 .885 + 16 .814 + 1.501 + 2.668 1.501 + 12 .502 + 2.044 + 15.188

158 .878 31 .235

= 5.087

Interpretation :- The standard for this ratio is 2 : 1 here it is more than that. It shows the short term paying capacity of Bank. Here the bank has satisfactory short term paying position.

2) Interest received to total Income

= Interest Re ceived x100 Tota ln come

For the year 2008

= 45 .734 x100 51 .709

= 88.44% For the year 2009

54 .005 100 76.966 = 70 .17 % =

For the year 2010

= 54 .234 x100 66 .68

= 81.33% Interpretation: - This ratio gives relation between interest & total income. It gives % of operating income.

3) Interest paid on deposit to Total income

Interest Re ceived x100 Tota ln come

For the year 2008

= 29 .651 x100 51 .709

= 57.342 % For the year 2009

37 .878 100 76 .966 = 49 .22 % =

For the year 2010

40 .483 x100 66 .68 = 60 .71 % =

Interpretation: - This ratio gives how much amount the interest has been paid up to deposit holder.

4) Net Profit to paid up share capital

Net Pr ofit Paidupshar ecapital

x100

For the year 2008

1.729 100 10 .425 =16 .59 =

For the year 2009

2.214 100 12 .32 =17 .97 % =

For the year 2010

2.341 100 14 .935 =15 .67 % =

Interpretation: - This ratio gives how much amount getting to shareholder. Higher the ratio better it is.

5) Total provision to Total income

Pr ovision x100 TotalIncom e

For the year 2008

= 1.521 x100 51 .709

= 2.94 %

For the year 2009

0.438 100 76 .966 = 0.57 % =

For the year 2010

0.1 9 1 x1 0 0 6 6.6 8 = 0.2 8 %

Interpretation: - This ratio gives how much provisions are made by bank on its total income to meetits contingencies. 6) Total expresses to Total Income
= TotalExpen ses x100 TotalIncom e

For the year 2008

= 49 .508 x100 51 .709 = 96.66%

For the year 2009

74 .752 100 76 .966 = 97 .12 % =

6 43 3 9 . x1 0 0 . For the year 2010 6 66 8 = 9 64 9 . % =

Interpretation: - This ratio of total expresses to total income. It is better if it is minimum. for the point of view making profit expenses always less than incomes. 7) Proprietary Ratio share holder
= Sharehhold erfund TotalAsset

(Share holder fund = share capital + reserve and surplus + profit) For the year 2008
= 61 .68 642 .371

=0.096

For the year 2009

= 73 .498 689.376

=0.107

For the year 2010

= 73 .221 767 .771

=0.095

Interpretation :- This ratio gives the right of the shareholder in the total value of Assets. The art of the shareholder must be greater as much as possible Greater the ratio better it is.

Chapter VII conclusion

CONCLUSION
1

It concluded from the study that performance of the bank is up to the mark. It is observed that the trend of the financial position is in increase in nature. It is observed that profit is increased every year. After comparing the financial statement it is observed that bank has improvement its strength in financial position. By doing or study it is concluded that Nagpur Nagrik Sahakari Bank excellent bank in co-operative sector in district. From ration analysis it is concluded that all ratio are up to the standards. Therefore this bank is treated as Ideal Bank in cooperative sector. In brief it is concluded that since this bank is for the people, by the people and to the people.

2 3
4

It is running in good condition as well as it has credit Therefore this bank has future development aspect.

worthiness.

Chapter - VIII Suggestion

Suggestion
Profit of bank is increasing in rate but for improve its working and financial position I suggest some points. 1) Marketing of bank is non proper, it wants to be improve. 2) Adopt new schemes. 3) Working condition of the staff should be improved. 4) Develop sources of earning.

Chapter - IX Limitation

Limitations:
1) Due to limitation of data and time is restricted to the method chosen. 2) Data given by bank is limited for study. 3) The staff members could not give precise answers to some of the questions. 4) Majority of data is collected through Secondary data; limitations of secondary data are the limitation of study.

Chapter X Bibliography

Bibliography
1) N. Nagratnam Management Accounting Financial Management & Holding Company account 2) Erich A. Heltert 3) C. R. Kothari 4) V.K. Bhalla 5) Rastogi Technique of Financial Analysis Research Methodology Financial Management Financial Management

6) Annual Report of Nagpur Nagrik Sahakari Bank.

Chapter XI Annexure

48 okW okf"kZd vgoky

Directors of Nagpur Nagrik Sahakari Bank

1) Shri. Rajesh V. Loya 2) Dr. Shri. Sanjay N. Bhende 3) Shri. Vijay Kumar G. Ruthiya 4) Shri. Girish C. Deshmukh 5) Shri.Nilkanth F. Devangan 6) Shri. Ravindra P. Bokare 7) Shri. Girish B.Vyas 8) Shri. Rajesh S. Bagadi 9) Smt. Punam S. Chandak 10) Shri. Dilip N. Bhutada 11) Shri. Chandrashekhat G.Devdhar 12) Dr. Shri. Vasudev B. Malu 13) Shri. Tusharkanti P. Dabalr 14) Shri. Rajesh K. Lakhotiya 15) Shri. Tarun C. Savla 16) Shri. Vijay K. Umbarkar 17) Smt. Alka C. Sherkule 18) Shri. Manoj G. Dubele 19) Shri. Dilip K. Mulmule Chairman Vice Chair Person Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director (Staff Representative) (Chief Executive Officers)

Name of the officers (Head office)

1) Shri. D.K. Mulmule 2) Shri. P.D. Ghotekar 3) Shri. S.N. Sapre 4) Shri. S.P. Fadna vis 5) Shri. S.V. Vidwans 6) Smt. S.M. Mandhana 7) Shri. R.L. Soni 8) Shri. Anand Takar 9) Shri. V.D. Ambatkar 10) Shri. Manish Mohata 11) Shri. Mohan Shah 12) Shri. S.V. Jadhav 13) Shri. S.A. Mankar 14) Shri. R.S. Kapoor 15) Shri. S.M. Gadge 16) Shri. A.C. Dhande 17) Shri. U.R. Narad 18) Shri. R.R. Dongare

Chief Executive officer General Manager Asstt General Manager Asstt General Manager Asstt General Manager Asstt General Manager Senior Manager Manager IT Manage P & A Manager IT BN Recovery BM Establishment BM SHARE Accountant Accountant Spl. ASSTT Spl. ASSTT Clerk IT

Name of Branch

Akola Amravati Chhindwada Dadar Deendayal NGR Dhantoli Dharampeth Ganjakhet Gittikhadan 10) Hingna Road 11) Indore 12) Itwari 13) Kalamana Market 14) Kamtee 15) Kamptee Road 16) Katol 17) Koradi 18) Lakadganj 19) Mahal 20) Manewada Road 21) Narkhed 22) Sadar 23) Pandhurna 24) Sakkardara 25) Service 26) Sitabuldi 27) Sivani 28) Umrer 29) Vashi 30) Vivekanand Nagar 31) Wadi 32) Warud 33) Vashi (New Mumbai) 34) Head Office
1) 2) 3) 4) 5) 6) 7) 8) 9)

BALANCE SHEET AS ON 31-03-2010

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2008

Auditors' Report To The Members

(As required under Section 30 of Banking Regulation Act, 1949 as applicable to Co-operative Societies read with Rule 17 of Multi-State Cooperative Societies Rules) We have audited the attached Balance sheet of "NAGPUR NAGRIK SAHAKARI BANK LIMITED" Nagpur as at 31s1 March, 2010 and also the Profit & Loss Account of the bank annexed thereto the cash flow statement for the year ended on that date in which are incorporated the returns of all Branches audited by us. These financial statements are the responsibility of the Bank's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Further to our comments referred above; 1. The Balance Sheet and Profit & Loss Account have been drawn up in form 'A' and 'B' respectively of the Third Schedule to the Banking Regulations Act, 1949.

2. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose .of our audit and have found them satisfactory. 3. In our opinion, the Bank, as required by law, has kept proper books of account, so far as appears from our examination of the books. 4. The returns received from the branches of the banks have generally been found adequate for the purpose of our audit. 5. The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of account and the Branch returns. 6. There has been no material impropriety and irregularity in the expenditure or in the realization of money due to the bank, which comes to our notice. 7. The transactions of the Bank, which have come to our notice, have been within the competence of the Bank. 8. We report that: Subject to limitation of audit indicated in paragraph '2 and 3' above and reference is invited in Notes on accounts. a) Note No. 1 regarding adjustment arising from reconciliation/clearance of outstanding items stated therein. The effect of which is not ascertainable. b) Note No. 9 regarding the approval of restructuring of Term Loan by NABARD under package scheme. We further report that: Subject to the observation in Para 8 above, our comments and observation contained in Audit memorandum and read with the significant Accounting policies and Notes on Accounts thereon. We further report that; In our opinion and to the best of our information and according to the explanation given to us, the accounts give a true and fair view.

i) In the case of Balance Sheet of the state of affairs of the Bank as at 31sl March, 2010, ii) In the case of Profit & Loss Account of the profit of the Bank for the year ended on that date, and iii) In case of the Cash Flow Statement of the cash flows for the year ended on that date. . FOR PALIWAL MODANI & C O., Chartered Accountants.

Nagpur, Dated the 20"1August,2010