Description
Educational Project Report
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A STUDY ON FINANCIAL
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INTRODUCTION
Aggressive entry of the commercial bank both in public and private
sector into the rural areas with advanced technology and net working to
implement the financial inclusion envisaged in the 11
th
five year is the
major challenge before STCCS of the for which, our major trust would
be go for Core Banks with scope to connect the ACS in the commercial
counterparts and to scope with the imminent changes in banking
industry!
BACKGROUND OF THE STUDY :-
The business model for focusing only on Agriculture is possible for
sustenance when the balance sheet is small! But as the balance sheet si"e
e#pands, the bank is taking steps to diversify into to other segments of
lending to sustain the growth momentum! Continued pressure on margin of
all the three tires including the bank constitute one of the most daunting
challenges during the year $%%&'%( necessitating redesigning and
rebalancing the business portfolio for sustaining the profitability! )e need
to build strength to face stiff competition on account liberali"ation! *se of
technology has redefined relationship in the banking products available to
+ndian customer ! But Core Banking Solution in the bank is yet to
grounded although the work is in progress! ,owever, the bank dwarfs
other Banks in Agricultural finance! +t has been evolved as one of the best
farmers friendly Bank providing about $&- of the priority sector lending.s
including //- of agricultural loans and 01- of crop loans disbursed by
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the entire bank irrespective of the Cooperative Banks held only /- of total
deposits mobili"ed in the state!
RESEARCH METHODOLOGY:-
The research involved e#tensive and intensive studies of the 2rissa State
Cooperative Bank 3imited! +n This project has been made to study the
financial analysis of the bank! 4uring this period, + study the final
position and performance of the Bank! At last, + have given
interpretation and conclusion of the study!
OBJECTIVES OF THE STUDY:-
1! To study the current financial of position of financial condition of the
bank!
$! To study the profitability of The Bank for 3ast 5ive 6ears
1! To Study the important 7atios 5or five 6ears!
/! Action to be taken for variance!
DATA COLLECTION :-
The data collection is completely made from as well as secondary
sources!
? The secondary sources cover 8
? Annual 7eport
? Commercial 4ata
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? 2fficial 7ecords in the organi"ation
? 5iles
? Books on subject
? )eb sites
LIMITATIONS OF THE STUDY:-
• 3imitation of time
• The viability of the project under taken depends upon the reliability
of primary 9 secondary data taken!
• +t is only a study of interims report 9 annual reports of the
organi"ation! The study should not be made compressive due to true
factor and limited information in hand!
• +t is a service organi"ation so all the tool and techni:ue are not apply!
COMPANY PROFILE
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)ith the growth of central Bank, the need for loan and advances and
cash credit at a reasonable rate of grew for central Bank to enable them
to make ade:uate finance available to the societies! So in April 1;1/, the
Bihar and 2rissa provincial Cooperative Bank was formed!
The early /%s witnessed the introduction of provincial autonomy in
all British +ndian provinces and what was paramount importance was the
birth of the orth 2rissa and South
2rissa are 11 9 $ respectively!
A few months after the formation of the separate 2rissa Cooperative
Bank was registered on 1?
th
August, 1;10 and sum of 7s 1%?$% was
collected towards share capital of the Bank! The main objective of the
bank was @
? To finance the cooperative societies!
? To act as a balancing centre for the surplus funds of the societies in
2rissa!
? To carry on the banking businesas!
The central Bank and union of 2rissa applied for the bifurcation of the
Bihar and 2rissa provincial cooperative Bank! The 11 central
cooperative Banks in >orth 2rissa served all connections with the Bihar
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provincial cooperative by 2rissa Aovernment! The 2rissa provincial
cooperative bank registered on 1?
th
August, 1;1; could not start its
functions due to pending of Aovernment decision on the en:uiry into the
conditions of the cooperative movement in 2rissa! There was no Ape#
Bank for the 11 northern CCBs! ,owever, the two southern were
obtaining loans from the Badras provincial cooperative bank as usual!
2n $
nd
April, 1;(/ the 2rissa provincial cooperative Bank was
again registered under the Bihar and 2rissa cooperative society act
1;1?!$$members were enrolled and 1%% shares were issued and share
capital of 7s! 1%,%$%C' was collected! So it was twice born of the Bank!
The name of ABA74 awarded the
bank with Two best erformance pri"e for e#cellence
performance!
$%%%'%$ ATB were installed in Cuttack and Bhubaneswar!
Customer attitude survey was taken up through the Davier
+nstitution of Banagement, Bhubaneswar!
$%%$'%1 iE +ntroduction of cooperation bank mutual Arrangement
scheme! FC2BBAS2E
iiE 7ecovery of cooperative duties in 2rissa!
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ivE The cooperative Bank has earned highest profit in that
year!
$%%1'%/ iE Cooperation of ABA74 on one side and the Central Cooperative Bank and
primary Society on other! They mobili"e resources from the public by
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way of deposits and by borrowing from 7B!+, >ABA74, S+2B+ and
other refinancing agencies!
MISSION OF O-S-C-B LTS-:-
The mission of 2!S!C!B! 3td is to become a strong and Hibrant Bank
having competition edge and to lead a rejuvenated short term
Cooperative Credit Structure to serve the people of 2rissa!
ACHIEVEMENT:-
>et worth e#ceeding 1/% corers and deposits more than 1%$0 corers!
ATB service is available in the Bain branches for anytime banking!
Garning profits since inception and paying dividend to share holders!
Awarded for best performance by finance Binistry, Aovt! 2f +ndia!
,igher enter on all type of deposits!
3oan for commercial vehicles, small business building!
urchase of customer and durables!
4emand draft issued on all types of deposits and on ace major cities of
country!
There are 1& affiliates of the 2rissa State Cooperative bank which are
known as the Central Cooperative Bank or 4istrict Cooperative Banks
are as follows 8'
M", Pi+t$e !) O$iss"
OSCB Net/o!k
*+CCBs
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The In%i" S+en"$i! !) the O$iss" St"te C!!,e$"ti&e B"n. is "s
)!##!3s :-
Chit fund
+ndigenous Banker *norgani"ed
Boney lender
2rgani"ed
>idhis
Rep!esents
CCBs
O$*"ni4e%
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7!B!+ S!G!B!+ B25
5oreign +ndian Cooperative Banks
rivate Sector ublic sector SCBs SCA74 *CBs
Banks CBs
CCBs
CA74 BA>IS
ACs
SB+ 9 >ationali"ed 7Bs
Subsidiaries Banks
FINANCIAL STATEMENT ANALYSIS:-
Int$!%+ti!n
According is the processes of recording, classifying, summari"ing and
interpreting various business transactions in a systematic manner! +t
provides the information to its various users for decision making! The
end products of the business transactions are the financial statements
comprising primarily the position statements or balance sheet and
income statement or profit and loss account!
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MEANING OF FINANCIAL STATEMENT ANALYSIS :
A financial statement is a collection of data organi"ed according to some
logical and consistent accounting procedures! +ts purpose is to convey
and understanding of some financial aspects of a business form!
The term financial statement generally refers to the following two
statements8
? The position statement or the balance sheet!
? The income statement or profit and loss account!
5inancial statements are prepared preliminary for decision making! But
the information provided in the financial statement is not an end in itself
as any meaningful conclusion can be drawn from these statements alone!
FANANCIAL STATEMENT ANALYSIS :
The financial statements are useful to different parties for different
purposes The objectives of financial statement analysis can be of many
and a few of them is listed below 8'
1! To judge the earning performance of the business!
$! To judge the financial health of the enterprise!
1!To judge the financial viability of the company to pay its obligation
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along with the interest!
/! To judge the solvency position of the enterprise!
PROCEDURE OF FINANCIAL STATEMENT ANALYSIS:
Broadly speaking, the analysis of financial statements is involved in the
steps 8'
1! Selection
$! Classification
1! +nterpretation
The first step involved selection of information relevant to the purpose
of analysis of financial statements! The second step involved is the
mathematical classification of the data! The 1
rd
step includes drawing of
interference and conclusion!
The following procedure is adopted for the analysis and
interpretation of financial statement 8'
1! The analysis should know all the principles and postulates of
accounting, plans and policies or the management to find out whether
the plans are properly e#ecute or not!
$! To know the earning capacity of the enterprise then analysis of
income statement and to know the financial position then analysis of
balance sheet will be undertaken!
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1! The financial data given in the statement should be reorgani"ed and
re'arranged! Similar data grouped under same heads, breaking down
individual components of statements according to the nature! The data is
reduced to a standard form!
/! A relationship is established among financial statements with the help
of tools and techni:ues of analysis such as ratios, trends, common si"e,
funds flow! Gtc!
?! The information is interpreted in a simple and understandable way!
0! The significance and utility of financial data is e#plained for helping
decision taking!
&! The conclusions drawn from interpretation are presented to the
management in the form of reports!
TYPES OF FINANCIAL ANALYSIS :
5inancial analysis can be classified into different types depending uponJ
1! The material used, and
$! The method of operation followed in the analysis or the modus opera
ding og analysis!
1! Types of financial analysis!
T',es !) )in"n+i"# "n"#'sis
2n the basis of Baterial used 2n the basis of modus operandi
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ON THE BASIS OF MATERIAL USED :-
According to material used, financial analysis is of two types
"- E5te$n"# An"#'sis :
This analysis is done by the outsiders who do not have access to the
detailed internal accounting records of the business firm! These outsiders
include investors, potential investors, creditors, potential creditors, govt!
Agencies, and the general public! 5or financial analysis, these e#ternal
parties to depend entirely almost on the published financial statements!
Thus e#ternal service serves a limited purpose! ,owever, the recent
changes in the government regulations re:uiring business firm to make
available more detailed information to the public through audited
published accounts have considerably improved the position on the
e#ternal analysis!
6- Inte$n"# "n"#'sis :
The analysis concluded by person who have access to the internal
accounting records of a business firm is known as internal analysis! This
analysis is performed by e#ecutives and employees of the organi"ation
E5te$n"#
An"#'sis
Inte$n"#
An"#'sis
H!$i4!nt"#
An"#'sis
Ve$ti+"#
An"#'sis
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A STUDY ON FINANCIAL
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as well as govt! Agencies which have statutory powers vested in them!
5inancial analysis for managerial purposes is the internal type of
analysis that can be effected depending upon to the purpose to be
achieved!
ON THE BASIS OF MODUS OPERANDI :-
According to the method of operation followed in the analysis,
financial analysis can also be of two types8'
a! ,ori"ontal
b! Hertical analysis
"- H!$i4!nt"# "n"#'sis :-
,ori"ontal analysis refers to the comparison of financial data of a
company for several years! The figures for this of analysis are presented
hori"ontally over a number of columns! The figures of the various years
are compared with standard or base year! A base year is a year chosen as
beginning point! This type of analysis is also called 4ynamic Analysis as
it is based on the data from year to year rather
Than on data of any year! There are two tools for hori"ontal analysis
1! Comparative statement
$! Trend percentage!
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/60 Ve$ti+"# "n"#'sis :-
Hertical analysis refers to the study of relationship of the various items
in the financial statements of one accounting period! +n this types of
analysis the figures from financial statement of a year are compared with
a base selected from the same year statement! +t is also known as static
analyses! There are two tools for vertical analysis 8'
1! Common si"e financial statement
$! $! 5inancial ratio!
METHODS OR DEVICES OF FINANCIAL ANALYSIS :-
The analysis and interpretation of financial statement is used to
determine the financial position and results of operations as well! A
number of methods or devices are used to study the relationship between
different statements! An effort is made to use those devices which clearly
analy"e the position of the enterprise! The following methods analyses
are generally used 8
1! Comparative Statement
$! Trend analysis
1! Common @si"e statement
/! 5unds flow statement
?! Cash flow statement
0! 7atio analysis
&! Cost volume profit analysis
A-COMPARATIVE STATEMENT :-
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The comparative financial statements are statements which are prepared
at different periods of time relating to the same concern! This is done to
make the financial data more meaningful! +n comparative statement
figures for two or more periods are placed side by side to facilitate
comparison! +n fact, the comparative statements will show the following8
1! 5igures i!e! absolute figures
$! Change in figure i!e! increase or decrease!
1! 4ata in terms of percentage
/! Changes in terms of percentage i!e! increase or decrease! Both the
income statement and balance sheet can be prepared in the form of
comparative financial statements!
/i0 COMPARATIVE INCOME STATEMENT :
The income statement discloses the net profit or net loss on account of
business operations! The comparative income statement will show the
absolute figure for two or more periods, the changes in absolute figures
and the changes in terms of percentages! Since, the figure of two or more
periods are shown side by side the reader can :uickly ascertain whether
sales has increased or decreased, gross profit has increased or decreased!
/ii0 COMPARATIVE BALANCE SHEET :
The comparative balance sheet as on two more different dates can be
used for comparing the assets and liabilities and finding out any increase
or decrease in those items! Thus in a single balance sheet the main
emphasis is on present position while it is on the changes of assets and
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liabilities! Such a comparative balance sheet is very useful in studying
the financial position every different periods!
Gi%e#ines )!$ inte$,$et"ti!n !) +!(,"$"ti&e 6"#"n+e sheet:
)hile interpreting comparative balance sheet the interpreter is e#pected
to study the following aspects8
1! Current financial position and li:uidity position
$! 3ong term financial position
1! rofitability of the concern!
B- T$en% An"#'sis:
+t is an important tool of financial statement analysis! This techni:ue is
greatly helpful in making a comparative study of the financial statements
relating to several years at a time! *nder this techni:ue trend percentage
are calculated for each item of the financial statement taking the figures
of base year as 1%%! Aenerally the starting year is taken as base year!
The trend percentage shows the relationship of each item with the
figures of other years! They will show the direction Fi!e! upward or down
wardE to which the concern is proceeding!
5or e#ample, if sales figure for the year 1;;? to $%%% are to be studied,
then sales of 1;;? will be taken as 1%% and the percentage of sales for all
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other years will be calculated in relation to the base year, i!e! 1;;?!
Suppose the following trends are determined!
Ye"$ T$en%
1;;? 1%%
1;;0 1$%
1;;& 11%
1;;( 1$?
1;;; 11?
$%%% 1/%
$%%1 1%%
$%%$ 1$%
The trends to sales show that sales have been more in all the years since
1;;?! The sales have shown on upward trend e#cept in 1;;& when sales
were less than the previous year i!e! 1;;0! A minute study of trends
shows that rate of increasing in sales is less in the years 1;;; and $%%%!
The increase in sales is 1?- in 1;;( as compared to 1;;& and increase
in 1;;; as compared to 1;;( and ?- in $%%% as compared to 1;;;!
Through the sales are more as compared to the base year but still the rate
of increase has not been constant and ac:uires a study by comparing
these trends to other items like cost of production, etc!
PROCEDURE FOR CALCULATING TRENDS:
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1! 2ne year is taken as base year! Aenerally the first or last year is taken
as base year!
$! The figures of based year are taken as 1%%!
1! Trend percentages are calculated in relation to base year! +f a figure in
other years is less than 1%% and it will be more than 1%% if figure is more
than base year figure! Gach year figures are divided by the base year
figures!
C- COMMON- SI7E STATEMENT:
This is techni:ue of financial analysis! The common @ si"e statement,
balance sheet and income statement are shown in analytical percentages!
The figures are shown as percentage of total asset, total liabilities and
total sales! The total sales are taken as 1%% and different assets are
e#pressed as a percentage of total! Similarly, various liabilities are taken
as component percentage or 1%% percentage of the total!
8- C$$ent $"ti! :
Current ratio is defined as the relationship between current assets and
current liabilities! This ratio is also known as working capital ratio, is
widely used to make the analysis of short term financial positional
li:uidity of firm!
C$$ent $"ti! 9 +$$ent "sset : +$$ent #i"6i#it'
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YEAR CURRENT
ASSETS
CURRENT
LIABILITIES
RATIO
$%%/'%? 1%,01$,$%0,&0$ 0,/?/,1%&,;01 1!0/
$%%?'%0 11,$//,?;/,0/? 0,?&?,1;1,1%% $!%1
$%%0'%& 10,/(&,1;$,;/% 0,(&1,(1;,$$( $!/%
$%%&'%( $?,%%&,&(1,;$$ 11,$;1,1&1,1/? $!$1
$%%('%; $(,10;,$&(,/(; 1$,11/,/0(,;%( $!1%
The short term solvency position of bank is sound in $%%& '%(
;- C"sh ,!siti!n !$ A6s!#te #is )ns: sh"$eh!#%e$>s )n%
De6t es )n% R"ti!
$%%/'%? 1(,?%0,111,11; $,;/1,(1?,/&? 0!$(
$%%?'%0 $$,?01,%%%,&0? 1,1;(,?$%,;1& &!%?
$%%0'%& $0,$;%,(/$,/;? 1,$0;,(;?,$?1 (!%?
$%%&'%( 11,1/;,?%;,$(( 1,//&,%%;,%&& ;!0;
$%%('%; 1%,$1?,&1;,%%% 1,&&;,/0/,(&? (!%%
The debt e:uity ratio increased in $%%('%; but it but it was decreased in
$%%;'1% due to depression period!
C- Fn%e% %e6t t! +",it"#i4"ti!n $"ti!:
The ratio establishes a link between the long term funds raised from
outside and total long term funds available in business8
5unded debt to total capitali"ation ratio K F funded debtC total
capitali"ationE # 1%%
5unded debt to total capitali"ation ratio for the year $%%?'%0 to $%%;'1%
is as follows8
Ye"$ Fn%e% De6t T!t"# C",it"#i4"ti!n R"ti!
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$%%/'%? $,1/%,&&;,&?/ $,011,(;?,1?$ %!($
$%%?'%0 /,01(,;1&,;%/ 1,0&1,??$,11; 1!$?
$%%0'%& 1$,?1/,110,(%$ 11,$11,($$,&$& %!;?
$%%&'%( &,&(1,$??,(/( 1%,0/(,%1%,%?; %!&1
$%%('%; (,/0(,;&(,1$$ ;,/%;,;&?,;11 %!;%
The funded debt to total capitali"ation ratio is increased ma#imum in $%%0'%&
@- Eon Banking
assets
ac:uired in
certification
of claims
>ill >ill >ill >ill >ill
rofit 9
3oss
>ill >ill >ill >ill >ill
INTERPRETATION
CAPITAL G LIABILITIES
1! The common si"e balance sheet from $%%?'1% included that there are nearly
e:ual e#istence of share capita or very small change year to year!
$!7eserve fund 9 other reserve are nearly e:ual to each other ! +n
$%%&,$%%(,$%%;,$%1% was $%1&1!(&,$?1%!10,$$&/?!$/,$1//;!(& respectively!
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1!2wned fund will increase year to year in $%%&,$%%(,$%%;,$%1%, was
$&1?%!&1,$(00&!&/,$;?((!10,1%(;1!1(respectively !
/!4eposit will be vary year to year $%%&,$%%(,$%%;,$%1% was
1$;?(0!$1,1?00$0!(%,$11%$$!%1,11(?%%/; respectively !
?!Borrowing also increase year to year in $%%&,$%%(,$%%;,$%1% was
1$?1/&!1&,100?;1!$?,1&$$&1!1%,$$1?(0!?/ respectively!
0!+nvestment will increase year to year in higher percentage in
$%%&,$%%(,$%%;,$%1% was &(?;(!((,1/1$1/!%1, $$;11%!10,1$;10?!($,respectavily
&! Advances will vary year to year in $%%&,$%%( was 1;1&01!$$,$%%01&!&?! But
$%%; decreases 1;(1$&!&( 9 $%1% it increases $/(((?! 1(!
(! Cost management will also change year to year in $%%&,$%%( it was
10&;!%%,$0&(!/1!But $%%; it was decreases 1(0/!&$ 9 in $%1%it increases to
$$;$!(1!
;! )orking capital also increase year to year but in $%1% it increases highly that is
0$$11&!/?!
1%! >et rofit will also vary year to year in $%%& ,$%%( was ;10!%1,;&$!1$! But in
$%%; decreases to ;0;!1% and increase in $%1%!1%1/!1&!
11! 4ividend declared also increase highly in $%%( but in decrease in $%%; as
compare to the year $%%(!
PROPERTIES AND ASSETS
1! The cash amount is ma#imum in $%%; '1% as compared to $%%('%;!+t
increase 1%;!$$- in $%%;'1% as compared to the pervious year!
$! Balance with other bank in$%%('%; was 1&/&1;0!0? and in $%%;'1% it
increase to 1%&($;?&!0?!
1! Boney at call and short notice in $%%('%; was 1001;1%&1$?!%% and
in $%%;'1% it increase s to $10?&?%&1$?!%%!
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/!+nvestment in $%%('%; was 0$&1&$;%;/!%% and it increases $%%;'1% to
;$&;%&/01%!%%!
?! 3oan and advances also increases in $%%;'1% as compared to $%%('%;
that is 1;(1$&&(??%!1/ to $/(((?1(11(!1&!
0! +nterest receivable increases + $%%;'1% to 1%%/$((/$0!01as compared
to $%%('%;!
&! Bill receivable being the bill lodged as per contra in $%%('%; was
/;!0; lakh! But it increases in $%%;'1% to 0(!(1 lakh!
(! Adjusting head in the year $%%('%;,/1$;!(%lakh! But in $%%;'1%it
decreases to /$/$!/1 lakh!
;! The premises of the continuing year are following down slowly in
$%%('%; it was 11%!/0 lakh but in $%%;'1% it decreases to $(;!%1lakh!
1%! 5urniture 9 5i#ture less depreciation was in $%%('%; 7s!
1%0!&(lakh! +t decreases in the year $%%;'1% to 7s!1%1!(;lakh!
11! 2ther asset will be purchase by bank in $%1% which indicates to
improvement of bank and it will increases 7s!1(01!11lakh in the year
$%%;'1%!
1$! rofit also increase year to year!
FINDINGS
1! As a convention of current ratio the ma#imum of $81 is referred to as a
bank.s rule of thumb but in $%%/'%? states not so satisfactory! Thus,
from the current ratio analysis, bank.s overall li:uid position is
satisfactory!
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$! The standards norm or absolute li:uidity li:uidity ratio is is %!?81! But
in case of 2!S!C!B absolute li:uidity position is satisfactory!
1! +n case of debt e:uity ratio of 2!S!C!B outsides fund has increased
over the year, which states that the claims of outsiders are greater than
those owners!
/! +n case of funded debt to total capitali"ation ratio says that there is no
rule of thumb! But still the lesser is the better, i!e!, up to ?%- or ??- So
funded debt to total capitali"ation ratio of 2!S!C!B is satisfactory!
?! The proprietary ratio of 2!S!C!B over the year shows that business
concern becomes more dependent upon creditors to supply its working
capital!
0! The concern assets to proprietary fund of the bank are very high over
the year it means that proprietary.s fund of bank over the year are not
satisfactory!
&! The fi#ed assets to proprietary.s fund of the bank over the year are not
satisfactory!
(! The solvency ratio of 2!S!C!B is high over the year but low
percentage is satisfactory! +t indicates the long term solvency position of
the company is not so good!
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;! The fi#ed asset to current assets of 2!S!C!B is very high which has
reminded idle that is not satisfactory to the company
1%!The return on assets of 2!S!C!B is satisfactory that is the resources of
the organi"ation were being used properly!
11!The return on e:uity capital of 2!S!C!B provides a higher rate of
dividend to its e:uity shareholders!
1$! The return on e:uity capital of 2!S!C!B provides a higher rate of
dividend to e:uity shareholders!
11! The earnings per share of 2!S!C!B over the year have gradually
increased which is satisfactory to the e:uity shareholders!
SUGGESTION
?+nvest the ideal money ineffectively and efficient manner!
?Ieep the financial position better and incest the fund in the right time
and right place!
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?+ncrease share capital rather than debt capital!
?Select the standard performance try to over the stand and performance
?The erformance and facility should be better than other commercial
bank!
?+ncrease the return on investment, so that, the share capital should be
increased easily!
?3ess amount of borrowing givens a good financial position!
?+nvest amount of borrowing gives a good financial position!
?+nvest long term, so that it decrease li:uidity of the firem
?Boderni"ed occurring to the other organi"ation and policy!
?The moderni"ed rules and regulation must be suitable for the
customer, employees and employer!
?+ncrease the personal transaction and individual savings!
?The current account operation should give minimum operating cost!
?All type of modern systems should be used for better performance!
?The bank should focus more on advancing long and getting money
from depositors
?+t should recover its money from defaulters in a limited time!
?+t should control the non'operation e#penses and other!
?+t should ready for the coming competition as because all bank are
going to be privati"ed!
?+t should diversify its business and should given longs to
nonagricultural sectors!
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CONCLUSION
5rom all the above interpretation we many conclude that the overall
performance of the bank is satisfactory! The growth rate of the bank
shows a sound position! The organi"ation does not utili"e its assets!
5rom the discussion we can say that the market value per share is low
and book value of the share is high! The bank has been earning profit
since its inception and continuously pauing dividend to its shareholders!
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All the branches and e#tension counters of the bank are fully
computeri"ed to provide efficient customer service!
The 2SCB have designed its loan policy document and manual of
instruction with a broadly concept minimi"ing its credit facilities to the
right borrowing! +t is the most leading bank in the sector of the co'
operative and it can all types of financial facilities to the customer for
challenge to the modern private and Aovt! Banks!
BIBLIOGRAPHY
1! Chandra rasad 8 5inancial Banagement, Theory 9 ractice
$! Ihan B!6 9 !I! Lain 8 5inancial Banagement
1! andey 3!B 8 5inancial Banagement
/! Sharman 7!I 9
Shashi I! Aupta 8 Banagement accounting
REFERENCES :
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A STUDY ON FINANCIAL
FUNCTION OF O.S.C.B
1! Annual report F$%%('%;E 8 2!S!C!B! 3td
$! Annual 7eport F$%%;'1%E 8 2!S!C!B! 3td
1! )eb @site 8 www!oscb!coop
doc_387850484.docx
Educational Project Report
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A STUDY ON FINANCIAL
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INTRODUCTION
Aggressive entry of the commercial bank both in public and private
sector into the rural areas with advanced technology and net working to
implement the financial inclusion envisaged in the 11
th
five year is the
major challenge before STCCS of the for which, our major trust would
be go for Core Banks with scope to connect the ACS in the commercial
counterparts and to scope with the imminent changes in banking
industry!
BACKGROUND OF THE STUDY :-
The business model for focusing only on Agriculture is possible for
sustenance when the balance sheet is small! But as the balance sheet si"e
e#pands, the bank is taking steps to diversify into to other segments of
lending to sustain the growth momentum! Continued pressure on margin of
all the three tires including the bank constitute one of the most daunting
challenges during the year $%%&'%( necessitating redesigning and
rebalancing the business portfolio for sustaining the profitability! )e need
to build strength to face stiff competition on account liberali"ation! *se of
technology has redefined relationship in the banking products available to
+ndian customer ! But Core Banking Solution in the bank is yet to
grounded although the work is in progress! ,owever, the bank dwarfs
other Banks in Agricultural finance! +t has been evolved as one of the best
farmers friendly Bank providing about $&- of the priority sector lending.s
including //- of agricultural loans and 01- of crop loans disbursed by
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the entire bank irrespective of the Cooperative Banks held only /- of total
deposits mobili"ed in the state!
RESEARCH METHODOLOGY:-
The research involved e#tensive and intensive studies of the 2rissa State
Cooperative Bank 3imited! +n This project has been made to study the
financial analysis of the bank! 4uring this period, + study the final
position and performance of the Bank! At last, + have given
interpretation and conclusion of the study!
OBJECTIVES OF THE STUDY:-
1! To study the current financial of position of financial condition of the
bank!
$! To study the profitability of The Bank for 3ast 5ive 6ears
1! To Study the important 7atios 5or five 6ears!
/! Action to be taken for variance!
DATA COLLECTION :-
The data collection is completely made from as well as secondary
sources!
? The secondary sources cover 8
? Annual 7eport
? Commercial 4ata
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? 2fficial 7ecords in the organi"ation
? 5iles
? Books on subject
? )eb sites
LIMITATIONS OF THE STUDY:-
• 3imitation of time
• The viability of the project under taken depends upon the reliability
of primary 9 secondary data taken!
• +t is only a study of interims report 9 annual reports of the
organi"ation! The study should not be made compressive due to true
factor and limited information in hand!
• +t is a service organi"ation so all the tool and techni:ue are not apply!
COMPANY PROFILE
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)ith the growth of central Bank, the need for loan and advances and
cash credit at a reasonable rate of grew for central Bank to enable them
to make ade:uate finance available to the societies! So in April 1;1/, the
Bihar and 2rissa provincial Cooperative Bank was formed!
The early /%s witnessed the introduction of provincial autonomy in
all British +ndian provinces and what was paramount importance was the
birth of the orth 2rissa and South
2rissa are 11 9 $ respectively!
A few months after the formation of the separate 2rissa Cooperative
Bank was registered on 1?
th
August, 1;10 and sum of 7s 1%?$% was
collected towards share capital of the Bank! The main objective of the
bank was @
? To finance the cooperative societies!
? To act as a balancing centre for the surplus funds of the societies in
2rissa!
? To carry on the banking businesas!
The central Bank and union of 2rissa applied for the bifurcation of the
Bihar and 2rissa provincial cooperative Bank! The 11 central
cooperative Banks in >orth 2rissa served all connections with the Bihar
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A STUDY ON FINANCIAL
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provincial cooperative by 2rissa Aovernment! The 2rissa provincial
cooperative bank registered on 1?
th
August, 1;1; could not start its
functions due to pending of Aovernment decision on the en:uiry into the
conditions of the cooperative movement in 2rissa! There was no Ape#
Bank for the 11 northern CCBs! ,owever, the two southern were
obtaining loans from the Badras provincial cooperative bank as usual!
2n $
nd
April, 1;(/ the 2rissa provincial cooperative Bank was
again registered under the Bihar and 2rissa cooperative society act
1;1?!$$members were enrolled and 1%% shares were issued and share
capital of 7s! 1%,%$%C' was collected! So it was twice born of the Bank!
The name of ABA74 awarded the
bank with Two best erformance pri"e for e#cellence
performance!
$%%%'%$ ATB were installed in Cuttack and Bhubaneswar!
Customer attitude survey was taken up through the Davier
+nstitution of Banagement, Bhubaneswar!
$%%$'%1 iE +ntroduction of cooperation bank mutual Arrangement
scheme! FC2BBAS2E
iiE 7ecovery of cooperative duties in 2rissa!
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ivE The cooperative Bank has earned highest profit in that
year!
$%%1'%/ iE Cooperation of ABA74 on one side and the Central Cooperative Bank and
primary Society on other! They mobili"e resources from the public by
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A STUDY ON FINANCIAL
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way of deposits and by borrowing from 7B!+, >ABA74, S+2B+ and
other refinancing agencies!
MISSION OF O-S-C-B LTS-:-
The mission of 2!S!C!B! 3td is to become a strong and Hibrant Bank
having competition edge and to lead a rejuvenated short term
Cooperative Credit Structure to serve the people of 2rissa!
ACHIEVEMENT:-
>et worth e#ceeding 1/% corers and deposits more than 1%$0 corers!
ATB service is available in the Bain branches for anytime banking!
Garning profits since inception and paying dividend to share holders!
Awarded for best performance by finance Binistry, Aovt! 2f +ndia!
,igher enter on all type of deposits!
3oan for commercial vehicles, small business building!
urchase of customer and durables!
4emand draft issued on all types of deposits and on ace major cities of
country!
There are 1& affiliates of the 2rissa State Cooperative bank which are
known as the Central Cooperative Bank or 4istrict Cooperative Banks
are as follows 8'
M", Pi+t$e !) O$iss"
OSCB Net/o!k
*+CCBs
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The In%i" S+en"$i! !) the O$iss" St"te C!!,e$"ti&e B"n. is "s
)!##!3s :-
Chit fund
+ndigenous Banker *norgani"ed
Boney lender
2rgani"ed
>idhis
Rep!esents
CCBs
O$*"ni4e%
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A STUDY ON FINANCIAL
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7!B!+ S!G!B!+ B25
5oreign +ndian Cooperative Banks
rivate Sector ublic sector SCBs SCA74 *CBs
Banks CBs
CCBs
CA74 BA>IS
ACs
SB+ 9 >ationali"ed 7Bs
Subsidiaries Banks
FINANCIAL STATEMENT ANALYSIS:-
Int$!%+ti!n
According is the processes of recording, classifying, summari"ing and
interpreting various business transactions in a systematic manner! +t
provides the information to its various users for decision making! The
end products of the business transactions are the financial statements
comprising primarily the position statements or balance sheet and
income statement or profit and loss account!
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MEANING OF FINANCIAL STATEMENT ANALYSIS :
A financial statement is a collection of data organi"ed according to some
logical and consistent accounting procedures! +ts purpose is to convey
and understanding of some financial aspects of a business form!
The term financial statement generally refers to the following two
statements8
? The position statement or the balance sheet!
? The income statement or profit and loss account!
5inancial statements are prepared preliminary for decision making! But
the information provided in the financial statement is not an end in itself
as any meaningful conclusion can be drawn from these statements alone!
FANANCIAL STATEMENT ANALYSIS :
The financial statements are useful to different parties for different
purposes The objectives of financial statement analysis can be of many
and a few of them is listed below 8'
1! To judge the earning performance of the business!
$! To judge the financial health of the enterprise!
1!To judge the financial viability of the company to pay its obligation
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along with the interest!
/! To judge the solvency position of the enterprise!
PROCEDURE OF FINANCIAL STATEMENT ANALYSIS:
Broadly speaking, the analysis of financial statements is involved in the
steps 8'
1! Selection
$! Classification
1! +nterpretation
The first step involved selection of information relevant to the purpose
of analysis of financial statements! The second step involved is the
mathematical classification of the data! The 1
rd
step includes drawing of
interference and conclusion!
The following procedure is adopted for the analysis and
interpretation of financial statement 8'
1! The analysis should know all the principles and postulates of
accounting, plans and policies or the management to find out whether
the plans are properly e#ecute or not!
$! To know the earning capacity of the enterprise then analysis of
income statement and to know the financial position then analysis of
balance sheet will be undertaken!
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1! The financial data given in the statement should be reorgani"ed and
re'arranged! Similar data grouped under same heads, breaking down
individual components of statements according to the nature! The data is
reduced to a standard form!
/! A relationship is established among financial statements with the help
of tools and techni:ues of analysis such as ratios, trends, common si"e,
funds flow! Gtc!
?! The information is interpreted in a simple and understandable way!
0! The significance and utility of financial data is e#plained for helping
decision taking!
&! The conclusions drawn from interpretation are presented to the
management in the form of reports!
TYPES OF FINANCIAL ANALYSIS :
5inancial analysis can be classified into different types depending uponJ
1! The material used, and
$! The method of operation followed in the analysis or the modus opera
ding og analysis!
1! Types of financial analysis!
T',es !) )in"n+i"# "n"#'sis
2n the basis of Baterial used 2n the basis of modus operandi
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ON THE BASIS OF MATERIAL USED :-
According to material used, financial analysis is of two types
"- E5te$n"# An"#'sis :
This analysis is done by the outsiders who do not have access to the
detailed internal accounting records of the business firm! These outsiders
include investors, potential investors, creditors, potential creditors, govt!
Agencies, and the general public! 5or financial analysis, these e#ternal
parties to depend entirely almost on the published financial statements!
Thus e#ternal service serves a limited purpose! ,owever, the recent
changes in the government regulations re:uiring business firm to make
available more detailed information to the public through audited
published accounts have considerably improved the position on the
e#ternal analysis!
6- Inte$n"# "n"#'sis :
The analysis concluded by person who have access to the internal
accounting records of a business firm is known as internal analysis! This
analysis is performed by e#ecutives and employees of the organi"ation
E5te$n"#
An"#'sis
Inte$n"#
An"#'sis
H!$i4!nt"#
An"#'sis
Ve$ti+"#
An"#'sis
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A STUDY ON FINANCIAL
FUNCTION OF O.S.C.B
as well as govt! Agencies which have statutory powers vested in them!
5inancial analysis for managerial purposes is the internal type of
analysis that can be effected depending upon to the purpose to be
achieved!
ON THE BASIS OF MODUS OPERANDI :-
According to the method of operation followed in the analysis,
financial analysis can also be of two types8'
a! ,ori"ontal
b! Hertical analysis
"- H!$i4!nt"# "n"#'sis :-
,ori"ontal analysis refers to the comparison of financial data of a
company for several years! The figures for this of analysis are presented
hori"ontally over a number of columns! The figures of the various years
are compared with standard or base year! A base year is a year chosen as
beginning point! This type of analysis is also called 4ynamic Analysis as
it is based on the data from year to year rather
Than on data of any year! There are two tools for hori"ontal analysis
1! Comparative statement
$! Trend percentage!
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/60 Ve$ti+"# "n"#'sis :-
Hertical analysis refers to the study of relationship of the various items
in the financial statements of one accounting period! +n this types of
analysis the figures from financial statement of a year are compared with
a base selected from the same year statement! +t is also known as static
analyses! There are two tools for vertical analysis 8'
1! Common si"e financial statement
$! $! 5inancial ratio!
METHODS OR DEVICES OF FINANCIAL ANALYSIS :-
The analysis and interpretation of financial statement is used to
determine the financial position and results of operations as well! A
number of methods or devices are used to study the relationship between
different statements! An effort is made to use those devices which clearly
analy"e the position of the enterprise! The following methods analyses
are generally used 8
1! Comparative Statement
$! Trend analysis
1! Common @si"e statement
/! 5unds flow statement
?! Cash flow statement
0! 7atio analysis
&! Cost volume profit analysis
A-COMPARATIVE STATEMENT :-
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The comparative financial statements are statements which are prepared
at different periods of time relating to the same concern! This is done to
make the financial data more meaningful! +n comparative statement
figures for two or more periods are placed side by side to facilitate
comparison! +n fact, the comparative statements will show the following8
1! 5igures i!e! absolute figures
$! Change in figure i!e! increase or decrease!
1! 4ata in terms of percentage
/! Changes in terms of percentage i!e! increase or decrease! Both the
income statement and balance sheet can be prepared in the form of
comparative financial statements!
/i0 COMPARATIVE INCOME STATEMENT :
The income statement discloses the net profit or net loss on account of
business operations! The comparative income statement will show the
absolute figure for two or more periods, the changes in absolute figures
and the changes in terms of percentages! Since, the figure of two or more
periods are shown side by side the reader can :uickly ascertain whether
sales has increased or decreased, gross profit has increased or decreased!
/ii0 COMPARATIVE BALANCE SHEET :
The comparative balance sheet as on two more different dates can be
used for comparing the assets and liabilities and finding out any increase
or decrease in those items! Thus in a single balance sheet the main
emphasis is on present position while it is on the changes of assets and
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liabilities! Such a comparative balance sheet is very useful in studying
the financial position every different periods!
Gi%e#ines )!$ inte$,$et"ti!n !) +!(,"$"ti&e 6"#"n+e sheet:
)hile interpreting comparative balance sheet the interpreter is e#pected
to study the following aspects8
1! Current financial position and li:uidity position
$! 3ong term financial position
1! rofitability of the concern!
B- T$en% An"#'sis:
+t is an important tool of financial statement analysis! This techni:ue is
greatly helpful in making a comparative study of the financial statements
relating to several years at a time! *nder this techni:ue trend percentage
are calculated for each item of the financial statement taking the figures
of base year as 1%%! Aenerally the starting year is taken as base year!
The trend percentage shows the relationship of each item with the
figures of other years! They will show the direction Fi!e! upward or down
wardE to which the concern is proceeding!
5or e#ample, if sales figure for the year 1;;? to $%%% are to be studied,
then sales of 1;;? will be taken as 1%% and the percentage of sales for all
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A STUDY ON FINANCIAL
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other years will be calculated in relation to the base year, i!e! 1;;?!
Suppose the following trends are determined!
Ye"$ T$en%
1;;? 1%%
1;;0 1$%
1;;& 11%
1;;( 1$?
1;;; 11?
$%%% 1/%
$%%1 1%%
$%%$ 1$%
The trends to sales show that sales have been more in all the years since
1;;?! The sales have shown on upward trend e#cept in 1;;& when sales
were less than the previous year i!e! 1;;0! A minute study of trends
shows that rate of increasing in sales is less in the years 1;;; and $%%%!
The increase in sales is 1?- in 1;;( as compared to 1;;& and increase
in 1;;; as compared to 1;;( and ?- in $%%% as compared to 1;;;!
Through the sales are more as compared to the base year but still the rate
of increase has not been constant and ac:uires a study by comparing
these trends to other items like cost of production, etc!
PROCEDURE FOR CALCULATING TRENDS:
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1! 2ne year is taken as base year! Aenerally the first or last year is taken
as base year!
$! The figures of based year are taken as 1%%!
1! Trend percentages are calculated in relation to base year! +f a figure in
other years is less than 1%% and it will be more than 1%% if figure is more
than base year figure! Gach year figures are divided by the base year
figures!
C- COMMON- SI7E STATEMENT:
This is techni:ue of financial analysis! The common @ si"e statement,
balance sheet and income statement are shown in analytical percentages!
The figures are shown as percentage of total asset, total liabilities and
total sales! The total sales are taken as 1%% and different assets are
e#pressed as a percentage of total! Similarly, various liabilities are taken
as component percentage or 1%% percentage of the total!
8- C$$ent $"ti! :
Current ratio is defined as the relationship between current assets and
current liabilities! This ratio is also known as working capital ratio, is
widely used to make the analysis of short term financial positional
li:uidity of firm!
C$$ent $"ti! 9 +$$ent "sset : +$$ent #i"6i#it'
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YEAR CURRENT
ASSETS
CURRENT
LIABILITIES
RATIO
$%%/'%? 1%,01$,$%0,&0$ 0,/?/,1%&,;01 1!0/
$%%?'%0 11,$//,?;/,0/? 0,?&?,1;1,1%% $!%1
$%%0'%& 10,/(&,1;$,;/% 0,(&1,(1;,$$( $!/%
$%%&'%( $?,%%&,&(1,;$$ 11,$;1,1&1,1/? $!$1
$%%('%; $(,10;,$&(,/(; 1$,11/,/0(,;%( $!1%
The short term solvency position of bank is sound in $%%& '%(
;- C"sh ,!siti!n !$ A6s!#te #is )ns: sh"$eh!#%e$>s )n%
De6t es )n% R"ti!
$%%/'%? 1(,?%0,111,11; $,;/1,(1?,/&? 0!$(
$%%?'%0 $$,?01,%%%,&0? 1,1;(,?$%,;1& &!%?
$%%0'%& $0,$;%,(/$,/;? 1,$0;,(;?,$?1 (!%?
$%%&'%( 11,1/;,?%;,$(( 1,//&,%%;,%&& ;!0;
$%%('%; 1%,$1?,&1;,%%% 1,&&;,/0/,(&? (!%%
The debt e:uity ratio increased in $%%('%; but it but it was decreased in
$%%;'1% due to depression period!
C- Fn%e% %e6t t! +",it"#i4"ti!n $"ti!:
The ratio establishes a link between the long term funds raised from
outside and total long term funds available in business8
5unded debt to total capitali"ation ratio K F funded debtC total
capitali"ationE # 1%%
5unded debt to total capitali"ation ratio for the year $%%?'%0 to $%%;'1%
is as follows8
Ye"$ Fn%e% De6t T!t"# C",it"#i4"ti!n R"ti!
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A STUDY ON FINANCIAL
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$%%/'%? $,1/%,&&;,&?/ $,011,(;?,1?$ %!($
$%%?'%0 /,01(,;1&,;%/ 1,0&1,??$,11; 1!$?
$%%0'%& 1$,?1/,110,(%$ 11,$11,($$,&$& %!;?
$%%&'%( &,&(1,$??,(/( 1%,0/(,%1%,%?; %!&1
$%%('%; (,/0(,;&(,1$$ ;,/%;,;&?,;11 %!;%
The funded debt to total capitali"ation ratio is increased ma#imum in $%%0'%&
@- Eon Banking
assets
ac:uired in
certification
of claims
>ill >ill >ill >ill >ill
rofit 9
3oss
>ill >ill >ill >ill >ill
INTERPRETATION
CAPITAL G LIABILITIES
1! The common si"e balance sheet from $%%?'1% included that there are nearly
e:ual e#istence of share capita or very small change year to year!
$!7eserve fund 9 other reserve are nearly e:ual to each other ! +n
$%%&,$%%(,$%%;,$%1% was $%1&1!(&,$?1%!10,$$&/?!$/,$1//;!(& respectively!
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1!2wned fund will increase year to year in $%%&,$%%(,$%%;,$%1%, was
$&1?%!&1,$(00&!&/,$;?((!10,1%(;1!1(respectively !
/!4eposit will be vary year to year $%%&,$%%(,$%%;,$%1% was
1$;?(0!$1,1?00$0!(%,$11%$$!%1,11(?%%/; respectively !
?!Borrowing also increase year to year in $%%&,$%%(,$%%;,$%1% was
1$?1/&!1&,100?;1!$?,1&$$&1!1%,$$1?(0!?/ respectively!
0!+nvestment will increase year to year in higher percentage in
$%%&,$%%(,$%%;,$%1% was &(?;(!((,1/1$1/!%1, $$;11%!10,1$;10?!($,respectavily
&! Advances will vary year to year in $%%&,$%%( was 1;1&01!$$,$%%01&!&?! But
$%%; decreases 1;(1$&!&( 9 $%1% it increases $/(((?! 1(!
(! Cost management will also change year to year in $%%&,$%%( it was
10&;!%%,$0&(!/1!But $%%; it was decreases 1(0/!&$ 9 in $%1%it increases to
$$;$!(1!
;! )orking capital also increase year to year but in $%1% it increases highly that is
0$$11&!/?!
1%! >et rofit will also vary year to year in $%%& ,$%%( was ;10!%1,;&$!1$! But in
$%%; decreases to ;0;!1% and increase in $%1%!1%1/!1&!
11! 4ividend declared also increase highly in $%%( but in decrease in $%%; as
compare to the year $%%(!
PROPERTIES AND ASSETS
1! The cash amount is ma#imum in $%%; '1% as compared to $%%('%;!+t
increase 1%;!$$- in $%%;'1% as compared to the pervious year!
$! Balance with other bank in$%%('%; was 1&/&1;0!0? and in $%%;'1% it
increase to 1%&($;?&!0?!
1! Boney at call and short notice in $%%('%; was 1001;1%&1$?!%% and
in $%%;'1% it increase s to $10?&?%&1$?!%%!
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/!+nvestment in $%%('%; was 0$&1&$;%;/!%% and it increases $%%;'1% to
;$&;%&/01%!%%!
?! 3oan and advances also increases in $%%;'1% as compared to $%%('%;
that is 1;(1$&&(??%!1/ to $/(((?1(11(!1&!
0! +nterest receivable increases + $%%;'1% to 1%%/$((/$0!01as compared
to $%%('%;!
&! Bill receivable being the bill lodged as per contra in $%%('%; was
/;!0; lakh! But it increases in $%%;'1% to 0(!(1 lakh!
(! Adjusting head in the year $%%('%;,/1$;!(%lakh! But in $%%;'1%it
decreases to /$/$!/1 lakh!
;! The premises of the continuing year are following down slowly in
$%%('%; it was 11%!/0 lakh but in $%%;'1% it decreases to $(;!%1lakh!
1%! 5urniture 9 5i#ture less depreciation was in $%%('%; 7s!
1%0!&(lakh! +t decreases in the year $%%;'1% to 7s!1%1!(;lakh!
11! 2ther asset will be purchase by bank in $%1% which indicates to
improvement of bank and it will increases 7s!1(01!11lakh in the year
$%%;'1%!
1$! rofit also increase year to year!
FINDINGS
1! As a convention of current ratio the ma#imum of $81 is referred to as a
bank.s rule of thumb but in $%%/'%? states not so satisfactory! Thus,
from the current ratio analysis, bank.s overall li:uid position is
satisfactory!
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FUNCTION OF O.S.C.B
$! The standards norm or absolute li:uidity li:uidity ratio is is %!?81! But
in case of 2!S!C!B absolute li:uidity position is satisfactory!
1! +n case of debt e:uity ratio of 2!S!C!B outsides fund has increased
over the year, which states that the claims of outsiders are greater than
those owners!
/! +n case of funded debt to total capitali"ation ratio says that there is no
rule of thumb! But still the lesser is the better, i!e!, up to ?%- or ??- So
funded debt to total capitali"ation ratio of 2!S!C!B is satisfactory!
?! The proprietary ratio of 2!S!C!B over the year shows that business
concern becomes more dependent upon creditors to supply its working
capital!
0! The concern assets to proprietary fund of the bank are very high over
the year it means that proprietary.s fund of bank over the year are not
satisfactory!
&! The fi#ed assets to proprietary.s fund of the bank over the year are not
satisfactory!
(! The solvency ratio of 2!S!C!B is high over the year but low
percentage is satisfactory! +t indicates the long term solvency position of
the company is not so good!
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A STUDY ON FINANCIAL
FUNCTION OF O.S.C.B
;! The fi#ed asset to current assets of 2!S!C!B is very high which has
reminded idle that is not satisfactory to the company
1%!The return on assets of 2!S!C!B is satisfactory that is the resources of
the organi"ation were being used properly!
11!The return on e:uity capital of 2!S!C!B provides a higher rate of
dividend to its e:uity shareholders!
1$! The return on e:uity capital of 2!S!C!B provides a higher rate of
dividend to e:uity shareholders!
11! The earnings per share of 2!S!C!B over the year have gradually
increased which is satisfactory to the e:uity shareholders!
SUGGESTION
?+nvest the ideal money ineffectively and efficient manner!
?Ieep the financial position better and incest the fund in the right time
and right place!
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A STUDY ON FINANCIAL
FUNCTION OF O.S.C.B
?+ncrease share capital rather than debt capital!
?Select the standard performance try to over the stand and performance
?The erformance and facility should be better than other commercial
bank!
?+ncrease the return on investment, so that, the share capital should be
increased easily!
?3ess amount of borrowing givens a good financial position!
?+nvest amount of borrowing gives a good financial position!
?+nvest long term, so that it decrease li:uidity of the firem
?Boderni"ed occurring to the other organi"ation and policy!
?The moderni"ed rules and regulation must be suitable for the
customer, employees and employer!
?+ncrease the personal transaction and individual savings!
?The current account operation should give minimum operating cost!
?All type of modern systems should be used for better performance!
?The bank should focus more on advancing long and getting money
from depositors
?+t should recover its money from defaulters in a limited time!
?+t should control the non'operation e#penses and other!
?+t should ready for the coming competition as because all bank are
going to be privati"ed!
?+t should diversify its business and should given longs to
nonagricultural sectors!
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A STUDY ON FINANCIAL
FUNCTION OF O.S.C.B
CONCLUSION
5rom all the above interpretation we many conclude that the overall
performance of the bank is satisfactory! The growth rate of the bank
shows a sound position! The organi"ation does not utili"e its assets!
5rom the discussion we can say that the market value per share is low
and book value of the share is high! The bank has been earning profit
since its inception and continuously pauing dividend to its shareholders!
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A STUDY ON FINANCIAL
FUNCTION OF O.S.C.B
All the branches and e#tension counters of the bank are fully
computeri"ed to provide efficient customer service!
The 2SCB have designed its loan policy document and manual of
instruction with a broadly concept minimi"ing its credit facilities to the
right borrowing! +t is the most leading bank in the sector of the co'
operative and it can all types of financial facilities to the customer for
challenge to the modern private and Aovt! Banks!
BIBLIOGRAPHY
1! Chandra rasad 8 5inancial Banagement, Theory 9 ractice
$! Ihan B!6 9 !I! Lain 8 5inancial Banagement
1! andey 3!B 8 5inancial Banagement
/! Sharman 7!I 9
Shashi I! Aupta 8 Banagement accounting
REFERENCES :
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A STUDY ON FINANCIAL
FUNCTION OF O.S.C.B
1! Annual report F$%%('%;E 8 2!S!C!B! 3td
$! Annual 7eport F$%%;'1%E 8 2!S!C!B! 3td
1! )eb @site 8 www!oscb!coop
doc_387850484.docx