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to others. -Mahatma Gandhi
Agriculture plays a vital role in Indian economy. It contributes approximately more than half of the national income. More than 70% of population depends on agriculture and 89% live with in villages But the economic position of these people is still not satisfactory and they are unable to meet their financial requirements for farming operations. Therefore they depend upon money lenders immensely for necessary financial requirements. According to a study conducted by the national institute for rural development, the credit supplied by the money lenders was 69.7% of the total loan supplied to the farmer in the year 1951-52 RBI report shows that the regional rural banks accounted for the highest share of 49.1% in the year 2002-03, due to the various illegitimate practices of the moneylenders and the wide spread illiteracy of the people. The debt went on increasing and became a crushing burden from which there seemed to be no escape with this process the farmers were losing their lands to pay the interest to the money lenders. Therefore, the Government of India has taken necessary steps to save the farmer from the clutches of moneylenders. In this context the idea of co-operative was mooted In India the co-operative has started officially in the year 1904 when the government of India passed the first co-operative act. The co-operative movement was introduced in India with the main objective of making a break through in the provision of credit to the poor classes. Especially for the vast majority of agriculturists who were suffering under the heavy weight of indebtedness. With the over whelming importance assigned to food production in our successive 5 year plans, the planners and pioneers of our country believed that co-operation is the most effective instrument for the economic growth and prosperity of our nation.
Co-operation has been defined “as a form of organization however in persons voluntarily associate together as human beings on the basis of equality, for the promotion of the economic interest amongst themselves”.
Co-operative has been defined as a form of organization where in persons voluntarily associated together as human beings on a basis of quality for the words of EM Hough. Co-operative may be voluntarily associated in a joint undertaking for mutual benefit. Co-operative society is a voluntary organization in which every one is welcomed to join with equal rights and equal responsibilities. Its main motive is to provide service to members and unlike private enterprises; it does not work to earn profit.
STRUCTURE OF INDIAN BANKING
Regional Rural Bank
Co- operative Co -operative Foreign banks Agricultural banks
Unit state co-op‟s
Salary Earners Societies
Thrift & Credit Societies
ABOUT RURAL CO-OPERATIVE BANKS In India 196 regional rural banks were there at the end of the financial year (31st march 2005). The maximum numbers of banks were in Andhra Pradesh with 47 in first place and next followed by the Kerala with 43 banks and then followed by Maharashtra with 40 banks. Indian banking system can be classified into three board categories viz. 1. Commercial banks 2. Development banks 3. Co-operative banks While commercial banks mostly provide short-term finance and development banks provide long – term finance to industries. Trade and commerce, co-operative banks on the other hand usually cater to the credit needs of lower and middle class borrowers in urban, semi rural and rural areas. The out standing deposits mobilized by regional rural banks registered an increase of 16.7% to Rs 43,220 cores in 2001- 2002 as compared with a. rise of 23.2% registered in previous year. RBI report says that there was a significant improvement in their performance. The credit structure of the co-operative banking system can be divided into two components viz. a) Agricultural credit, and b) Non agricultural credit Among 196 regional rural banks, 170 regional rural banks made operating profits of Rs 790 cores in 2000-01 with the net profit of Rs 676.48 cores. In the year 2001-02 196 regional rural banks made an operating profit of Rs 838 cores, with a net profit of Rs 699.93 cores. Non - agricultural credit component of the co-operative banking system is a 3tired pyramid structure – primary credit society
op bank Primary credit societies Co-operating credit structure DEFINITION OF CO-OPERATION: Co-operation has been defined in slightly different ways in various sciences and by various scholars. a co-operative society is an association for the purpose of joint trading organizing among the weak and conducted always in an unselfish sprit.Fay a protagonist. the most important was. several factors contributed to spread of the movement. a well-known authority on co-operation seems to be more broad and liberal. the emergence of several independent states.R. 5 . According to C. particularly in Asia. In order to have a through understanding of the concept. a co-operative society is an enterprise formed and directed by association of users. on such terms that all who are prepared to assume the duties of membership may share in its rewards in proportion to the degree in which they made use of their association. some well – known definitions are discussed below.State co-op Bank Central co. applying with in it the rule of democracy and directly intended to Satisfy both its members and community. According to him. The new states encouraged the spread of the co-operative movement as a part of their national strategy for planned development. it spread to several countries round the globe that is apparent from the table. As such. The definition given by Paul Lambert.
USA. 6 . Sweden & Israel. Palestine USA.D. It exists in some form in every continent and nearly every considerable country “although the needs of various types of co-operative organizations have been different in various countries. G. yet there has been something common in them.&Australia. Yugoslavia.Russia&Sweden Germany. It is „co-operative objectives and principles‟ which has been provided the common ground.No Type of co-operative 1 2 3 4 5 6 7 Consumer co-operatives Credit co-operatives Marketing co-operatives Land Mortgage credit Dairy co-operatives Farming societies Housing societies Country England. according to different historical circumstances and different environments in which they grow. Russia. Germany England& France Denmark & New Zealand.Co-operative movement in various countries S.H Cole highlighted the development of co-operative movement during 1940‟s in his book “century of co-operative is a world wide movement. Italy& India Canada.
but their analysis and interpretation .NEED FOR THE STUDY Analysis is the process of critically examine accounting information given in the financial statements. 7 . Their by themselves will not help a person to conclude whether the financial performance of the organization is good or not .financial position and future earning.Investors use the financial analysis in making decisions about whether to buy or sell stock and creditors use them in deciding whether or not lend.profit&loss account and other operative data.It involves a study of relationship among various financial factors and to judge their meaning and significance. Managers. They provide managers to measures how the company is doing in comparison to measures how the company is doing in comparison with its performance of the part competitors in the industry. The financial analyst must understand the plans and policies. The financial analysis provide valuable in sight in to a firms performance . establishment relationship among financial figures and make interpretation in a simple and unbiased way . recognize data available as per requirements. The significance of financial statements lies not in their preparation.The term financial analysis refers to the process of determining the financial strength and weakness of the firm by establishment strategic relationship between the items of balance sheet . investors and creditors use this form of analysis at the beginning point for their decision making .The statement gives only the figures.
The following are its subsidiary objectives: To examine the liquidity and solvency position of the company over the period of study. to know the reasons and factors responsible for the study its way of profit allocation 8 .OBJECTIVES OF THE STUDY: The primary objective of this study is to analyses the financial performance of Mulkanoor co-operative rural bank and marketing society limited (MCRB &MSL). To evaluate the profitability of the concern. To study the operational performance and efficiency of the company in terms of utilization of funds and other financial resources.
“Trend analysis” is discussed in the chapter. TOOLS & TECHNIQUES The analysis and interpretation of financial statement is used to determine the financial position and results of operations as well. which clearly analyze the position of the enterprise. 1) Comparative statements. An effort is made to use those devices. The following methods of analysis are generally used. The analysis and interpretation of financial statements is essential to bring out the mystery behind the figures in financial statements.SCOPE OF THE STUDY The purpose of financial analysis is to diagnose the information contained in financial statements so as to judge the profitability and financial soundness of the firm. 9 . Financial statement analysis is an attempt to determine the significance and meaning of the statement data so that forecast may be made of the future earnings. A number of Methods or devices are used to study the relationship between different statements. 2) Trend analysis 3) Common-size statements 4) Funds flow analysis 5) Cash flow analysis 6) Ratio analysis 7) Cost-Volume-profit analysis From the above methods the “Comparative Statements”. As this project work deals with the study of the following analysis are discussed.
For the` purpose of analysis individual items are studied their relationship with other related figures established. Secondly to study the over all profitability of MCRB &MS Ltd.FINANCIAL PERFORMANCE OF MCRB &MS LTD: The purpose of this chapter is to examiner the performance of the MCRB &MS Ltd. By applying the concept of the return on investment and analyzing the variation. With that of the standards given by the samakya for an ideal multi cooperative and to pain out the variations if any as well as to analyze the factors responsible for such variations. FINANCIAL STATEMENT ANALYSIS FINANCIAL ANALYSIS: Analysis is the process of critically examining in detail information given the financial statement. In on overall manner with a view to comment on its successful performance during the period under review. From the point of view of business management success as suggested by the samaikya. From time comparing the actual performance of the MCRB &MS LTD makes the analysis. the data is sometime rearranged to have better understanding of the information with the help of different techniques or tools for the purpose. 10 . Now it is proposed analyze the business success of the MCRB &MS Ltd. The performances of the MCRB &MS Ltd Is evaluated in terms of the following. Analyzing financial statements is a process of evaluation relationship between component parts of financial statement to obtain better understanding of firm‟s position and performance. Firstly to examine the performance for the MCRB &MS Ltd. if any in the profitability from time with the help of profit margin and asset turnover ratio.
5. 4. Interpreter must have experience. The present and future earning capacity of the concern. OBJECTIVE OF FINANCIAL ANALYSIS: Accounting ratios calculated for a number of years of the trend of the change of position the ascertainment of trend helps in making estimate for the future.INTERPRETATION: Analysis and interpretation and closely related interpretation is not possible without analysis and without interpretation analysis has no value. 2. Interpretation is that drawing of inference and stating what the figures in the financial statements really mean. 3. The operational efficiency of the concern as a whole and of its various parts. Understanding and intelligence to draw correct conclusion for the analysis data. The financial stability of the company. USES OF FINANCIAL ANALYSIS: Financial analysis is helpful in assessing the financial position and profitability of a concern this is done through compares on by ratios for the same concern over a period of years or for one concern against the predetermined standards or for one department of a concern against other department of the same concern. To compare the performance of the company with that of another company or have the same company with previous performance. The short term and long term solvency of the concern for the benefit of the debenture holders and trade creditors. The main objectives of financial analysis are to assess. 11 . 1.
solvency. 2. A) LONG TERM ANALYSIS: The analysis is made in order to study the long-term financial stability. credit agencies. The purpose of making 12 . According to the nature of the analyst and the material used by him INTERNAL ANALYSIS: The people who have assessed to the books of accounts make the internal analysis. The internal analyst can give more reliable result than the external analyst because every type of analysis. Analysis of the financial statement or other financial data for managerial is the internal type of analysis. The modus operandi of the analysis 1. profitability and earning capacity of a Company. 2.Types of the financial analysis may be: 1. The internal type of analysis can give more reliable result than the external analyst because every type of information is at his disposal EXTERNAL ANALYSIS: It is made by those persons who aren‟t connected with the enterprise‟s they don‟t have the assess to the detailed record of the company and have to depend mostly on published statements such analysis is made by investors. The nature of the analyst and the material used by him. The objective of analysis and 3. According to the objective of the analysis. government agencies and research scholars. They are members of the analysis.
3) According to the modus operand of the analysis: A) HORIZONTAL ANALYSIS: This analysis is made to review and analysis financial statements of a number of years and therefore based on financial data taken from several years. Interpretation: Drawing of Internees and conclusions. This is very useful for long-term trend analysis and planning. which may be helpful short-term financial planning. This analysis is made with reference to items of current assets and current liabilities (working capital analysis) to have fairly sufficient knowledge about the company‟s position. which will be sufficient to maintain a reasonable rate of return of the investment of the Company and to meet it cot of capital.such type of analysis is to know whether in the long run the company will be able to earn a minimum amount. This type of analysis help the long term financial planning which essential for the continued success of the company. B) VERTICAL ANALYSIS: This analysis is made to review and analyze the financial statement of one particular year only. 13 . Selection: Selection of Information (data) relevant to the purpose of analysis of financial statement. Procedure of Financial statement analysis: There are three steps in the financial statement. The purpose of this analysis is to know whether in the short run a company will have adequate funds readily available to meet its short-term requirements and sufficient borrowing capacity to meet contingencies in the near future. B) SHORT TERM ANALYSIS: This is made to determine the short-term solvency and liquidity of the company. Classification: Methodical classification of the data.
be it or marriage in the family. Unscientific and unplanned location is harmful to the organization. is like mother to a new entrepreneur who encourages the child to take the first step firmly that is what it does to the new business entrepreneur. 14 . A handshake that promises a careful and secure future MCRB & MS ltd. it contributes in realizing he dreams of its members for a quality life. It shares the problem of shareholders and assists to solve it. A HANDSHAKE SYMBOLIZES PROGRESS:“A handshake is all it takes to bring hope in the lives of the enthusiastic and ambitious entrepreneur to bring that ray of hope from behind dark clouds. „The MCRB & MS ltd. works towards making that handshake possible. Roper and well-planned location of a firm is an important managerial decision. HISTORY OF ORGANIZATION: Location: General location can be defined as “a firm located at a place where the inhabitants are interested in its success of the product can be sold profitably and the operation costs are minimum”. Thus location of a firm is an important factor for any organization as it has its effect on sales and profitability of particular firm the MCRB is situated in mulkanoor and is established in the year 1956. It believes in the concept of „ONE FOR ALL AND ALL FOR ONE‟ and its logo (symbol) as “HANDSHAKE” and it symbolize this. has achieved through is scheme the works on the principle of brotherhood and humanity. Few institutions can claim the success MCRB & MS ltd. Location of the store at a convenient lace really achieves the customer satisfaction. Every aspect of life is taken care of by the MCRB & MS ltd. The performance of an enterprise is considerably affected by its location.PROFILE OF THE MULUKANOOR CO-OPERATIVE RURAL BANK & MARKETING SOCIETY Ltd.
2006 it is having 6202 members and also it has share capital of Rs. It was registered as primary agriculture credit society under Hyderabad cooperative societal Act XVI of 1952.The area of operation of this co-operative is spread over the 14 revenue villages of Bheemadevarapally block in Bheemadevarapally taluka of Karimnagar district. Villages The bank spread over 14: They are 1) Mulkanoor 2) Mutharam 3) Bheemadevarpalli 4) Gatlanarsingapoor 5) Kothapally 6) Errabelly 7) Gopalpoor 8) Mallaram 9) Kothakonda 10) Jeelugula 11) Kopur 12) Vangara 13) Rathnagiri 14) Musthafapoo All the villages are situated 10 km distance from the headquarters of the MCRB& MS ltd. 31st March.. It is the “second biggest co-operative bank in Asia”.the initial membership of MCRB & MS was only 373 but it is increased to 5316 in the year 1993-94 according to data given by MCRB & MS it is having 6166 members up to 31st march 2005 and also it has share capital of Rs22195 up to 31st march 2005 and in the current year i. 15 . was registered on 27th July 1956 at Mulukanoor. The authorized share of 1crores on 30th June 1994 and the paid up share capital in the year 1993-94 was Rs1crore .e.REGISTRATION AND SHARE CAPITAL The Mulukanoor co-operative rural bank ltd. It was started with a paid up capital of Rs 2292 and authorized share capital. 23805.
M.A.STATEMENT SHOWING THE MEMBERSHIP OF LAST SEVENE YEARS This is a co-operative they believe in the will of their Members. wise and reasonable.Act 1964 in the year 1956. experience has shown. They have taken whole some decision pertaining to the bank in a democratic manner after discussions and deliberations and their decisions have proved reasonably correct according to the situations they faced. A constant increase in members is there in the bank year after year which is shown in the following table STATEMENT SHOWING THE MEMBERSHIP FOR LAST FIVE YEARS SLNO 1) 2) 3) 4) 5) 6) 7) PERIOD 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 MEMBERS 6048 6077 6166 6202 6251 6410 6740 SHARECAPITAL 18210 19494 22195 23805 28001 34423 42010 SOURCE: Annual reports of MCRB &MS.P.P. The decisions of the members have been on the whole. General Manager and employees-110. 16 . STRUCTURE Registered under A. too that in 44 of the last 49 years.S Act 1995 in the year 1995. Converted to A. President.C. General body consists of 6410 members. Managing committee consists of 15.
STAFF Day to day work is carried out by the staff of 110 members all of whom are drawn from the area of operation of the co-operation the staff is headed by the general manager followed by assistant general manager. 17 . manager and officers of the concerned divisions in the society.
ORGANIZATIONAL STRUCTURE OF MCRB&MS LTD STRUCTURE OF THE RURAL BANKING Board of directors Chairman General Manager- Agriculture Mill Personal Dept Accounts Dairy Business Dept Govt section Dept Dept Assistant Manager Business Computer Assistant Casher Marketing Executive Executive Lab our Lab our ` Seed Section Fertilizer Section 18 .
To become increasingly aware of the basic economics of the production and consumption by providing economic service. All A class members are eligible to vote and contest the election. 6. by providing production services. meets once in a month at least and all matters 19 .OBJECTIVES As a multipurpose co-operative its aim is to assist members 1. 10. To inculcate the habit of thrift self help co-operation among its members. To borrow or to raise funds to lend them to its members as per the cooperative principles. milk and milk products. 8. 5. To help in the marketing of the Products of cottage and village industries of its members. Rice. To provide fertilizers seeds and other agricultural implements to the members. 9. clothes. 7. To purchase quality consumer articles locally and at fare price by providing services. To find a fair and stable market for his produce. cosmetics etc to the members. The Achieve acceptable standards in terms of quality of his produce. which is elected by the general members in their special general body meeting conducted once in 3 years. kerosene. 3. To improve standards in health and education by providing welfare services. oil. The managing committee headed by the president. To arrange for the sale of agricultural produce. 11. 4. 2. To supply basic consumer goods and daily requirements such as sugar. In which 5 seats have been reserved for weaker sections. The total strength of the committee is 11 members. The president and vice president are elected by members of managing committee amongst themselves. MCRB & MS LTD is fully aware that its existence is completely dependent upon the welfare of its shareholders who in turn make the bank stronger by their endeavors. To promote the economic interest of the members as per the co-operative principles. GENERAL BODY AND MANAGING COMMITTEE As per the societies by laws all policy matters are decided by the managing committee. 12.
and suggests them to the managing committee for the action that has to be taken. National co-operative development corporation. At that time the reserve bank of India (RBI) decided to enlist the finance of commercial banks for the co-operative sector. Govt loans and subsidies. Till 1969-70. 4.related to the co-operative are discussed and policy decisions are taken at these meetings. To facilitate smooth work there is also a village committee in each of the 14 villages. Since then the SBH has been financier to the co-operative society. Deposits. These committees discuss the problems as and when the need arises. The major part of working capital is taken care of by the bank. The managing committee presents annual reports and accounts to the general body every year. Share capital. Main sources. 20 . 1. COMPOSITION OF BOARD OF DIRECTORS The management of the co-operative shell vest in the board of directors consisting of 15 members as indicated below. Scheduled castes 2 Scheduled tribes 1 Backward classes 3 Women 2 Open to all 7 FINANCE The society derives its working capital from the following sources. Borrowings from the bank. 3. State bank of Hyderabad. comprising of progressive members. Our members. 2. Government of Andhra Pradesh. the Karimnagar dist co-operative central bank was the financier.
500 through society 8 9 Janatha Accidental Insurance policy for 5 years (Premium Paid) J. Cotton Purchase Funeral Expenses Paid towards the expired Members Amount paid for expired Members through welfare scheme Rs.7.The Members of the Cooperative are getting following financial Benefits individually & jointly from Cooperative & through Cooperative During the year 2010-11 1 2 3 4 Bonus Paid on Paddy & Paddy Seed.29.05.38.900 LIC paid to deceased members on their individual policies Rs.48.11.380 Rs.220.127.116.11.487 21 .925 Rs.18.104.22.1680 Group Insurance premium paid to LIC to the Extent of Crop Rs.23.600 Rs.relief package for farmer members 17 Interest rebate.H 18 IFFCOI and Tokyo Insurance claims to members 19 JBY Scholar Ships to Students through LIC TOTAL Rs.22.214.171.124.16.000 Rs.326 Loan 5 6 7 LIC paid to deceased members to the extent of Crop loan Life Insurance to members through LIC (sum Assured) Rs.30000 10 Merit Scholarships paid to Children of Members 11 Received Subsidy and Margin Money from Water Management Rs.1.160 Rs.B.6.A.relief package from S.255 Rs.437 Rs.877 & other agencies towards Weaker Section Members 12 Insurance of Milk Animals and Sheep Premium for 3 years 13 Insurance claims towards death of Sheep and Milk animals 14 Insurance of Electric Motors Premium for 3 years 15 Insurance claimed towards failure of Electric Motors 16 Interest rebate.16.318 Rs.126.96.36.199.188.8.131.521 Rs.80.10.91.000 Rs.P.787 RS.87. Claims Rs.000 Rs.211 Rs.32.00.04.2.25.75.
344 thousands. medium term.99. DEPOSITS: Deposits are mobilized from the members amounting on 31st march 2010 to a total of Rs. diary sheep and other allied agriculture activities in which district Rural Development agency and S. and long term loans to its members for various purposes. cash. All types of loans advanced in this year amounted to Rs. fertilizers etc. half yearly installments. Long-term loans are sanctioned to eligible members to purchase tractor.992 thousands.20.1. jawhar. To improve socio-economic conditions of weaker sections.08.1. the short term loans are sanctioned for all types of crops.2529 thousands and the total loans amounted to Rs. eggs. in the form of paddy. which is repayable over a period of 7 years and in 14.145535 thousands from compulsory thrift deposits. The component „B‟ is distributed to members through the co-operative depots of seeds.In 2010 year MCRB & MS has given short term loans of Rs. In case of some of the members their borrowings from the co-operative are now equal to their savings with the bank.252 thousands and medium term loans of Rs. including local improved and high yielding varieties as per the scale of finance. security deposits and current deposits. Free technical services are provided from the technical staff of the society. viz. seeds. fertilizers. Pesticides etc. saving deposits. „A‟ comprises of cash portion to meet the agriculture operations and „B‟ comprises of the portion to the cost of seeds. Loans for all purpose are recovered largely in kind. Short-term loans are disbursed in the form of „A‟ and „B‟ components. cotton.CREDIT The co-operative gives short term.C/B.13512 thousands and long term loans of Rs.C co-operative societies have been involved by providing subsidy and margin money respectively which covers nearly 40% of the loan component. 22 . and increase their incomes the society has introduced many schemes in the section of poultry. fixed deposits. maize. and which is a relief to the weaker section. etc which is appreciated by members and it also helps in effective recoveries. Agriculture laborers and artisans are also receiving loans from the society to gain full time occupation.3.
Different kinds of foundation and certified seeds procured by the co-operative itself are sold to its members as well as others farmers through sales counters situated at Mulkanoor and at Kothakonda The society has also taken leadership from several leading companies for sale of fertilizers. pesticides with an annual turnover of Rs. pipelines etc. from the co-operative other items kept readily available for sale of members include oil engine. SERVICES PROVIDED BY MCRB & MS LTD: MARKETING SERVICES: Marketing services represent not only the sale of members produce but also include all the stages of storage processing etc. spare parts. bamboos. electronic goods. fertilizers.The poultry feed is being produced by the society through its feed mixing plant installed in the year 1973-74 with a capacity of one ton per hour. pesticides. Marketing services not only help in effective recovery of loans.500 metric tones capacity through its 55 go downs. PURCHASES: The society purchases food grains produced by members by paying extra Rs. electric motors. dusters.VARIOUS ACTIVITIES OF MCRB & MS LTD The Co-operative purchases several inputs for supporting the agricultural production and keeps these inputs available for sale to its members. so that they can handle various machines. cements etc so as to meet thee local requirement for construction of poultry sheds cattle sheds small house etc. bricks. but also provide the farmer timely finance for succeeding seasons. wood. coal. iron. The MCRB & MSLTD also deals in shahbadstone. sprayer. 23 . agricultural implements. all India rural credit survey committee (after undertaking a through study of the credit pattern) has expressed its opinion that recovery of credit cannot be effective unless credit is linked with marketing. So as to make the vicarious operations easier it keeps trained staff members available. The „B‟ component of credit supplied is lifted by members in the shape of seeds.15 than the Warangal market price and has storage facilities for 36.6552 lakhs.
000 to each village to have tube well in order to supply sufficient drinking water. DOOR DELIVERY SERVICES: The essential commodities are being supplied at door steps of the consumer through delivery van as per scheduled programmed in area of operation.04. The society also provided drinking water facilities in four villages by providing Rs. iron goods.992 from LIC to its members who died in this year.2.11. ropes etc at a reasonable price and supply of cooking gas of petroleum‟s. sugar.10. 24 .K. cement. The sales on these transitions were Rs.033 in 2006 years.31. The society has undertaken member education program in co-operation education with the financial assistance of MCRB & MS Ltd. CONSUMER SERVICES: The MCRB & MS ltd. toiletries and kerosene.whenever members need them.96. WELFARE SERVICES: The society as taken the agency of the life insurance corporation (LIC) India as well as general insurance corporation so that the lives of members as well as their assets such as cattle shed etc are insured. The national co-operative development cooperation has provided financial assistance of about Rs.. Vishwanatha reddy rural development society registered and through this society it has proposed to start a junior college and Degree college it also gives scholarship to 7th and 10th students. petrol. 86326 towards running these services.32. refined oil. 225 members have participated in this program. In 2010 the society was paid Rs. runs consumer stores at Mulkanoor and at Kothakonda though which it tries to supply members as well as the general public with essential house hold requirements such as food grains. The society has also established A.
25 . 87.. Liabilities S. The borrowings have shown a tremendous increase of Rs. Why because the society should pay more and more profits in the form of interest to the debtors. 1 2 3 4 5 6 Liabilities Share Capital Deposits Reserves Borrowings Payables Profits Year ending March 31 I / D 2004 16957 178645 133830 20000 12388 10155 2005 18210 182289 142392 37464 12545 9813 I/D Amount Percentage 1253 3644 8562 17464 157 -342 7.99 i.No. The overall financial position of the society is not bad. Rs.e.e. The share capital.33 5. 17464 i.57 2..32 1.26 Interpretation of Year ending 2004 & 2005 based on above findings. 149.57 35.38 2.32% it is not good to the society.26% than the previous year.03 6. it has growth by 8. Reserves has shown a favorable increase than the previous year.36 Total liabilities 371975 402713 30738 8.26 Assets 1 Advances 2 Investments 3 Properties 4 Stocks 5 Receivables 125753 142677 48399 35902 18830 134977 134718 49449 54276 28730 563 149 9224 -7959 1050 18374 7.99 6 Cash in Hand &Bank 414 Total Assets 371975 402713 30738 8.2004-2005 Comparative Balance Sheet of March 31-03-2004 and 31-03-2005. The absolute liquid assets(Cash & Bank Balance) has growth of 35.26 3.17 9900 52.39 87.26 51.
13 6. it has growth by 13.43 15.. 163.47i.47 6 Cash in hand &Bank 563 Total Assets 402713 455070 52357 13. The overall financial position of the society is not bad. The absolute liquid assets(Cash & Bank Balance) has growth of 145. But the profit has shown an unfavorable than the previous year.26 83.51 43..00 Interpretation of Year ending 2005 & 2006 based on the above findings. Reserves has shown a favorable increase than the previous year.05 6.00% than the previous year.63 145. The share capital.75% it is not good to the society. 26 .9 7. Rs. 819. 43. The borrowings have shown a tremendous increase of Rs. Why because the society should pay more and more profits in the form of interest to the debtors.94 i.00 146047 144331 52875 57676 52759 1382 11070 9613 3426 3400 24029 819 8.2005-2006 Comparative Balance Sheet of March 31-03-2005 and 31-03-2006.75 0. 1 2 3 4 5 6 Liabilities Share Capital Deposits Reserves Borrowings Payables Profits Year ending March 31 I / D 2005 18210 182289 142392 37464 12545 9813 2006 19494 194020 164485 53858 12658 10555 1284 11731 22093 16394 113 742 I/D 7. Liabilities S.56 Amount Percentage Total Liabilities 402713 Assets 1 Advances 2 Investments 3 Properties 4 Stocks 5 Receivables 134977 134718 49449 54276 28730 455070 52357 13.e.20 7.92 6. No.e.
36% it is not good to the society.53 31.2006-2007 Comparative Balance Sheet of March 31-03-2006 and 31-03-2007.e.e.15 198.96 Amount Percentage Total Liabilities 455070 Assets 1 Advances 2 Investments 3 Properties 4 Stocks 5 Receivables 146047 144331 52875 57676 52759 550350 95280 20. Rs. But the profit has shown decreasing than the previous year.36 70.58i.20 3.07 41.93% than the previous year. Why because the society should pay more and more profits in the form of interest to the debtors. The overall financial position of the society is not bad. 106836 i. it has growth by 20.24 6. Liabilities S.27 -67. The borrowings have shown a tremendous increase of Rs.() 934. The absolute liquid assets(Cash & Bank Balance) has growth of (-) 67..85 -24.58 6 Cash in hand &Bank 1382 Total Assets 455070 550350 95280 20. 1 2 3 4 5 6 Liabilities Share Capital Deposits Reserves Borrowings Payables Profits Year ending March 31 I / D 2006 19494 194020 164485 53858 12658 10555 2007 33195 145535 189409 160694 21544 10973 2701 -48485 24924 106836 8886 418 I/D 13.No..93 Interpretation of Year ending 2006 & 2007 based on the above findings.93 168315 153768 69307 81341 77171 448 22268 9437 16432 23665 24412 -934 15. Reserves has shown a favorable increase than the previous year. 198.03 46. 27 .98 15. The share capital.
.94% it‟s not good to the society.No. 48124 i.e. But the profit has shown a decreasing than the previous year. The absolute liquid assets (Cash & Bank Balance) has registered a growth of 170.29 -6.74 762 170.2007-2008 Comparative Balance Sheet of March 31-03-2007 and 31-03-2008. it has grown by 13. The overall financial position of the society is not bad.08% i.49 15. The Share capital.27 -4..68 Interpretation of Year ending 2007 & 2008 based on the above findings. Why because the society should pay more and more profits in the form of interest to the debtors.86 68. Liabilities S.68% than the previous year. The borrowings have shown a tremendous increase or Rs. reserves have shown of favorable increase than the previous year. 29. 1 2 3 4 5 6 Liabilities Share Capital Deposits Reserves Borrowings Payables Profits Year ending March 31 I / D 2007 22195 145535 189409 160694 21544 10973 2008 23805 145498 216045 208818 21053 10431 I/D Amount Percentage 1610 -37 26636 48124 -491 542 7. Rs.34 -22952 -29.06 29.025 14.93 Total Liabilities 550350 Assets 1 Advances 2 Investments 3 Properties 4 Stocks 5 Receivables 168315 153768 69307 81341 77171 625650 75300 13.94 -2.68 209200 143783 80303 136935 54219 1210 40885 -9985 10996 55594 24.25 -0.08 6 Cash in hand &Bank 448 Total Assets 550350 62560 75300 13.e. 28 .
68 11.72 11.63 10.54 26. 29 ..68 i.203 -24. -9850 i. It has grown by 11.45 16.27 80303 98153 17850 -67831 22. Rs.e. 1 2 3 4 5 6 Liabilities Share Capital Deposits Reserves Borrowings Payables Profits Year ending March 31 I / D 2008 23805 145498 216045 208818 21053 10431 2009 28001 160836 274015 198968 23463 12113 697396 I/D Amount Percentage 4196 15338 27970 -9850 2410 1682 71746 17.83 -4.47% than the previous year.72% its not good to the society. No. 4.54 136935 69104 54219 41016 1557 -13.23 -49..97 143783 249131 105348 73. The overall financial position of the society is not bad.e. The borrowings have shown a tremendous increases of Rs.13 11. But the profit has shown decreasing then the previous year. The absolute liquid assets (Cash & Bank Balance) has growth of 28.2008-2009 Comparative Balance Sheet of March 31-03-2008 and 31-03-2009 Liabilities S.47 Total Liabilities 625650 Assets 1 Advances 2 Investments 3 Properties 4 Stocks 5 Receivables 209200 238435 29235 13. reserves have shown a favorable increase than the previous year.47 6 Cash in hand &Bank 1210 Total Assets 625650 697396 71746 Interpretation of Year ending 2008 & 2009 based on the above findings. 347 The share capital.35 347 28. why because the society should pay more and more profits in the form of interest to the debtors.
93 Interpretation of Year ending 2009 & 2010 based on the above findings.42 6 Cash in hand &Bank 1557 Total Assets 697396 843371 145975 20.93% than the previous year. 754.e.56 36. Rs.06 Total Liabilities 697396 Assets 1 Advances 2 Investments 3 Properties 4 Stocks 5 Receivables 238435 249131 98153 69104 41016 843371 145975 20. The overall financial position of the society is not bad. why because the society should pay more and more profits in the form of interest to the debtors.75 29.2009-2010 Comparative Balance Sheet of March 31-03-2009 and 31-03-2010.. But the profit has shown decreasing then the previous year. No.48% its not good to the society. Liabilities S.e.00 23. It has grown by 20.93 282700 339599 108527 71897 38337 2311 44265 90468 10010 2793 -2315 754 18. 58661 i. 1 2 3 4 5 6 Liabilities Share Capital Deposits Reserves Borrowings Payables Profits Year ending March 31 I / D 2009 28001 160836 274015 198968 23463 12113 2010 34423 160836 339091 257629 38303 13089 I/D Amount Percentage 6422 0 65076 58661 14840 976 22.93 0.64 48. reserves have shown a favorable increase than the previous year. The absolute liquid assets (Cash & Bank Balance) has growth of 48. The borrowings have shown a tremendous increases of Rs. The share capital.04 -5..31 10.56 4.48 63. 30 .42 i. 29.25 8.
why because the society should pay more and more profits in the form of interest to the debtors. 3674.64 19.18% than the previous year.18 Interpretation of Year ending 2010 & 2011 based on the above findings. Rs.58 34. Liabilities S. 31 . The borrowings have shown a tremendous increases of Rs.e. The share capital.74 77..00% its not good to the society. No. The overall financial position of the society is not bad.03 12.46 39.47 235. 77. It has grown by 45.38 -2.96 6 Cash in hand &Bank 1557 Total Assets 697396 1012494 315098 45. But the profit has shown Increase then the previous year. The absolute liquid assets (Cash & Bank Balance) has growth of 235. 1 2 3 4 5 6 Liabilities Share Capital Deposits Reserves Borrowings Payables Profits Year ending March 31 I / D 2010 28001 160836 274015 198968 23463 12113 2011 42010 180892 382921 352192 40123 14356 I/D Amount Percentage 14009 20056 108906 153224 16660 2243 50..18 382430 370174 132161 82498 40000 5231 143995 121043 34008 13394 -1016 3674 60.96% i.39 48. 153224 i. reserves have shown a favorable increase than the previous year.e.00 71.00 18.2010-2011 Comparative Balance Sheet of March 31-03-2010 and 31-03-2011.51 Total Liabilities 697396 Assets 1 Advances 2 Investments 3 Properties 4 Stocks 5 Receivables 238435 249131 98153 69104 41016 1012494 315098 45.
04 35. Trends in share capital (Base Year 2004) Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Share Capital Trends Inc /Decrease (Rs. In „000) (Percentage) (Base Year) 18210 19494 22195 23805 28001 34423 42010 100 107.60 7.27 41.77 89.83 8.72 53.05 21.88 130.TREND IN SHARE CAPITAL Trends in share capital are computed to know the increase/decrease in the period of study.05 121.6 Here: 1) Increase/Decrease (Base Year) = Increase / Decrease in Trend % from the Base Year. Trend Percentages: Trends in advances are computed to know the increase/decrease in the period of study.77 189.6 I/D (Previous Year) 7.84 23.88 30.03 230. 2) Increase / Decrease (Previous Year) = Increase / Decrease in Trend % from the previous Year.05 14. 32 .03 130.72 153.
3. 194.74 MCRB & MS has registered maintaining the average trend percentage from the 2004-2005 and the share capital has increased from Rs.201005 06 07 08 09 10 11 INTERPRETATION OF SHARE CAPITAL BASED OF TREND PERCENTAGE Share Capital has registered on increasing trend throughout the period of study the authorized share capital is Rs. The average trend percentages of the period is 133.2006.84 more than Base Year) 33 .5 Crores.2005.23 it means those members are enrolling to avail the benefits of the MCRB & MS Ltd.2009.45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Year 2004.94 to 344.84 % (7.2007. There has been a steady increase the share capital has increased by 21.6 in the year 2004-2005 & 2010-11 respectively.2008.88 &130. There has been grading increase in the enrollment of members it has highest enrollment in the year 2004-05 of 7.
2) I / D (Previous Year) = I / D in Trend % from the previous year. Trends in share capital (Base Year 2004) Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Share Capital (Rs.52 133.02 151.02 51.44 138.71 45.78 Here: 1) Increase / Decrease (Base Year) = Increase / Decrease in Trend % from the Base Year.73 92.71 40.73 192.50 18.92 Inc/Decrease (Base Year) 15.44 238.14 268. 34 .52 33. In „000) 142392 164485 189409 216045 274015 339091 382924 Trends (Percentage) 100 115.92 I/D (Previous Year) 15. In the period of study.52 17.70 30.14 168.TRENDS AND RESERVES Trends in advances are computed to know the Increase / Decrease.
2007.39 There has been identical in the reserves from the previous year of around 115.2006.52 and highest being 268.2008.2005.2009.201005 06 07 08 09 10 11 INTERPRETATION OF RESERVES BASED ON TREND % The average trend percentage of Reserves 171.92 in the year 2010-11 MCRB & MS is maintaining growth rate as per RBI Norms 35 .450000 400000 350000 300000 250000 200000 150000 100000 50000 0 Year 2004.
2.91 Here: 1. 9813 10555 10973 10431 12113 13089 14356 100 107.27 -5.56 111.30 23.14 9.95 12. Increase / Decrease (Previous Year) = Increase / Decrease in Trend % from the previous year.56 11.38 146. In „000) Trends (Percentage) I/D (Base Year) I/D (Previous Year) Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 . 36 .29 7.30 123.38 46.56 4.29 7.44 33.82 106. Trends percentage (Base Year 2004) Net Profit (Rs.TRENDS IN NET PROFIT Trends in Advances are computed to know the Increase/Decrease in the period of Study.44 133.52 17.82 6. Increase/Decrease (Base Year) = Increase / Decrease in Trend % from the Base Year.
e. The decrease in net profit is a bad sign and unfavorable for the study as it lets to carry in operation for betterment of shareholders to service in market..2006.39 The Profit have shown Increase of 0.2008.3 times from the base years i.201005 06 07 08 09 10 11 INTEROPERATION OF NET PROFIT BASED ON TRENDS PERCENTAGE The Average Indices of Net Profit of MCRB & MS Ltd. throughout the period i.e. 37 .2007.2005. it has increased by 118.16000 14000 12000 10000 8000 6000 4000 2000 0 -2000 Year 2004.2009.39 There has been fall in net profit in 2007-08. for 7 years is 118.
TREND IN DEPOSITS Trends in Advances are computed to know the I/D in the period of Study Average = Average deposits by member + by Institution.44 -20.60 -0.44 79.44 -20.77 0.18 -11.76 6.23 100. 38 .80 -0.7 Here: 1.23 6. 2. I/D (previous year) = Increase/Decrease in Trend % from the previous year.03 99.02 8. in „000) Trends (Percentage) I/D (Base Year) I/D (Previous Year) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 182289 194020 145535 145498 160836 182350 180892 100 106. Increase / Decrease (Base Year) = I / D in Trend % from the Base Year.16 -20.82 88.03 -0.41 11. Trends percentages (Base Year 2004 = 100) Year Deposits (Rs.84 79.
201005 06 07 08 09 10 11 INTERPRETATION PERCENTAGES OF DEPOSITS BASED ON TREND The average of Deposits of MCRB & MS Ltd.2006. 39 .2008.37 Deposits have shown increase of 2..2005. It reveals that the deposits have full faith in the societies and it policies followed by it to attract deposits.2007. throughout the period of 7 years is 93.2009.5 times from the base year as shows the effort of the society to increase of deposits.250000 200000 150000 100000 50000 0 Year -50000 2004. The Society has been successful in mobilizing the deposits by the various positive policies followed by it to attract depositors. Based on the trends. Deposits have been doubling as compared to the base year 2005-06.
28 183. Increase/Decrease (Previous year) = Increase/Decrease in Trend % from the Previous Year.05 Here: 1.29 21.99 176. 2.70 154. In „000) Trends (Percentages) I/D (Base Year) I/D (Previous Year) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 134977 146047 168315 209200 238435 293275 382430 100 108.20 124.20 24. Advances = Outstanding loans at the end of the year.65 117.65 217. 3.28 283.66 40.63 66.20 16.70 54. Trends percentage (Base Year 2004) Year Advances (Rs. 40 . Increase/Decrease (Base Year) = Increase/Decrease in Trend % from the Base Year.33 8.TRENDS IN ADVANCES Trends in Advances are computed to know the Increase 10 Decrease in the period of Study.33 8.99 76.50 30.
450000 400000 350000 300000 250000 200000 150000 100000 50000 0 Year 2004. 41 .2006. Profitability depends on Advance more Advances would collecting of more interest and that would lead to profitability of the Society. The Society should keep check on the loans it advances and sees that they are secured.201005 06 07 08 09 10 11 INTERPRETATION PERCENTAGES OF ADVANCES BASED ON TREND Advances have been increasing throughout the period and it increased by 283.33% from the base year.2009.2005.2007.2008.
83 211.27 115.41 Here: 1.25 160.78 -48.73 -15.05 25. in „000) Percentages Differences (100%) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 182289 194020 145535 145498 160836 182350 180892 134977 146047 168315 209200 238435 293275 382430 75.TRENDS IN DEPOSITS Vs ADVANCES Trends in deposits Vs advances are computed to know the Increase/Decrease in the period of the Study.65 143.78 148. Trends percentages (Base Year 2004) Year Deposits (Rs.41 74. in „000) Advances (Rs. 2. Percentage = Advances / Deposits x 100 Difference = Differences of 100 – Percentage derived.65 -43.95 24. 42 .25 -60.83 111.
e.2008.2010-11(i.201005 06 07 08 09 10 11 Interpretation of Deposits Vs Advances Based on Trend Percentages: It is natural that of growth rate of Advances depends on size of growth rate of deposits over the period of 7 years. 43 .25 .e.160..5%.2005.2007.78. The Society should maintain favorable percentages of advances against the deposits i. So that it could use it resources it could be safe and earn considerable amount of profit.41 of loans were advances against deposits.2009. around 143. Percentages of Advances against deposits have been fluctuating. around 70-80%.148. 2008-09 and 2009-10 . Respectively. It has highest in the years 2007-08.83 and 211. The deposits have Inc by 2.2006.600000 500000 400000 300000 200000 100000 0 -100000 2004.
58 123.18 64. Trends percentage (Base Year 2004 = 100) Year Recovery percentage Trends (Percentages) I/D (Base Year) I/D (Previous Year) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 40.84 168.58 23.83 136.40 41.78 24.25 100 100.23 76.23 76.83 36.98 64.78 124.24 24. I/D (Base Year ) = I/D in Trend % from the Base year. Recovery percentage = Loans collected at the end of the year / Total loans to member in a year x 100. 2.24 68.98 64.4 41.93 0.84 45.25 40.24 68.09 Here: 1.TRENDS IN RECOVERY PERCENTAGE OF ADVANCES Trends in Recovery percentage of Advances are computed to know the Increase / Decrease in the period of study.64 65.18 64. 44 .24 124.64 65. I/D (Previous Year ) = I/D in Trend % from the previous year. 3.
as in few years. Over all recovery percentage is mixed.25% There has been a fluctuation in the recovery % of loans of they are less than the base year during 2004-05 and 2010-11 During the years 2004-05 to 2010-11. it is better than base year and vice-versa The society should see that it should have good recovery percentage 45 . The recovery percentage is less than the previous years.400 350 300 250 200 150 100 50 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 INTERPRETATION OF RECOVERY PERCENTAGES OF ADVANCES BASED ON TREND PERCENTAGES The Average indices of recovery percentage of Advances during the period of the study are 68.
it‟s unrecovered percentage of loans and advances. If the society starts recording its non-performing asset (NPA). The society should decrease. The ROI of society was recorded poor when compared to other financial institution. even then it has to increase the interest percentage slightly to survive and grow and serve its members. 46 . They are as follows: The society should take some remedial measures to control its productive cost to increase its profits. It should study the credit worthiness for the member and based on this should advance loans.FINDINGS & SUGGESTIONS In this chapter an attempt is made to offer some suitable suggestions to improve the financial performance of “The Mulukanur Co-operative Rural Bank and Marketing Society Limited”. It is due to rendering services to its members. It could understand the current financial position of it‟s at the end of the year and it could take necessary to control NPA‟S as these are productive. The society should decrease its long term borrowing (deposits) to decrease the interest payment as it pays more EPS.
Any how MCRB & MS Ltd.92%.e. As the reserves are source of long-term finance. in the year 2005-06. It reveals that society is following member‟s beneficial oriented policies and that is leading to more enrollments. 2010-11 reserve have increased by 168.e. Without hindering it‟s main motive of service. The share has increased by 89% than the first year of study i. The society have been very much successful in mobilizing the deposits. main motive is to service its members set not to earn profits.. it is advancing loans for development purpose and the amount of loans has increased 2 times from the first year of study.CONCLUSIONS The conclusions based on the study done are: The enrollment of member is very good. serving it‟s members and earning considerable amount of profits. There are 6740 shareholders during the year 2010-11. The authorized share capital 34423 and paid share capital in the year 2005-2006 was Rs. more advances means more interest and that would mean more income generation. 18210. 47 . The reserves at the beginning of review period i. The net profits have increased by 67% from the first year of study increasing at the considerable rate. society‟s has advances in the year 2010-11 is 382430. Profitability of a concern depends on its income generation as advances are source of income as they earn interest.. As the among deposited by members in society are increasing.. 2005-06 to 2010-11 the reserves were of 142392 and it increased to 382921 in the last year of study i. It can meet its long-term obligations. it has been following positive policies by giving its member various options of depositing.e.. As cooperative societies. the present deposits are 180892. their saving as discussed in earlier chapter.
The study is restricted to financial position of the book. The return on total assets ratio was observed at very poor. While computing ratios. 48 . It indicates that the current assets at the bank are financed from the outsider‟s funds. 2:1 and 1:1 indicating the bank maintain sufficient current assets to meet its current liabilities at a particular point of time and liquidity position is satisfactory. averages and percentages the figures are appropriated two decimal places. The Bank has utilized the total assets effectively LIMITATIONS OF THE STUDY The study is mainly based on the secondary and primary data was used. The EPS of society is satisfactory. The current assets are more than the shareholders funds.12 as the profits are less to main objective of society.e.. To serve its members in comparison of above said EPS is very good and increasing slowly. The current ratio and quick ratio of the Bank is above the ideal ratio‟s i. therefore sometimes the total may not exactly tally. The study is restricted to financial position of the bank. The average EPS throughout the period of study is 2. The study is mainly based restricted to only five years.
B. Bhalla Annual reports of MCRB & MS Ltd. Sharma Shashi.P. Maheshwari V..mcrbms.BIBLIOGRAPHY Financial Management Financial Management Advance accounting Advance accounting R. Bulletin.N. Rustage R. Website: www.I. K. Gupta S.K.K.in 49 .org Email: mcrbms@sancharnet. for the period of 2004-05 to 2010-11 Co-operative banks in India R.
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