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INTRODUCTION TO THE STUDY

The process of financial analysis is widely used evaluate the past, present and likely future performance of a business organization and identifying and financial strength and weakness of the enterprises by properly establishing relationship between the items of balance sheet and profit and loss account. The financial information contained in the statement is used by managements, creditors, investors and others to form qualitative judgment about the performance and financial position of the enterprise. These statement may be more fruitfully used if they are efficiently analyzed and interpreted to have a better insight about the financial strength and weakness of the enterprises, thus we can say financial statement are prepared primarily for decision making. The statement are not an end in them but are useful in decision making context. The balance sheet may be described as financial cross section taken at certain interval and the earning statements as a condensed history of the growth and decay between cross section. Thus financial analyst is the starting point for making plans, before using any sophisticated forecasting and budgetary procedures, IT is the financial analysts, which helps the management in their overall responsibility to see that the resources of the enterprises are properly utilized. Financial statements are very useful in given various indicators with help of certain techniques properly known as ratio analysis. The techniques are called as analysis and interpretations of financial statements.

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The reflect combination of recorded facts. Analysis of statement consist data recording to parameter of desired spectrum and presenting them in fashion that the above objective is achieved. as “Financial statements are prepared for the purpose of presenting a periodical review on progress by the management and deal with the status of investment in the business and the results achieved during the period under the review. The analysis and interpretation bridges the gap between the art of recording and the art of using information. These are also termed as methods of financial analysis. The following are the tools:- 2 . According to Jhon. N. Mayer “the financial statements provide a summary of the account of a business enterprise. accounting principles and personal judgments. The balance sheet is reflecting the assets.The utility of such statement is that a forecast may be made of the prospects of future earning ability to pay interest and debt maturities (both current and long term) and probability of sound dividend policy. The American institute of certified public accountants states the nature of financial statements. analysis exercise is basically an exercise to find facts from the given set of complex figures and date. liabilities and capital and as on a certain date and income statements showing the result of operations during a certain period”. ” Tools of financial Analysis A financial analysis can depot the following tools for analysis of the financial statements.

Each item of the base year is taken as 100 and on the basis the percentages for each year calculated.1. 4. 3. Fund flow Analysis Fund flow Analysis has become an important tool in the analytical kit of the analysis of the financial institution and financial managers. Both the income statement and balance sheet can be prepared in the form of comparative financial statements. Trend percentages Trend percentages are immensely helpful in making a comparative study of the financial statements for several years. Comparative financial statements Comparative financial statements are those statements. In the income statement the sales figures is assumed to be 100 and all figures are expressed as percentage of sales similarly in the balance sheet the total all the figures are expressed as percentage of this total. This is because of the balance sheet of business reveals its financial status at a particular point of time it does not sharply focus those financial 3 . 2. The method of calculating trend percentages that each item bears to the same item in the base year. which have been designed in a way so as to provide time prospective to the consideration of various elements of financial position embodied in such statements. Common size Financial Statements Common size financial statement is those in which figures reported are converted into percentage to some common base. Any year may taken as the base year. In these statements figures for two or more periods are placed side by side to facilitate comparison.

it may definitely providing some other significant information 4 . 5. The ratio analysis is based on the fact that a single accounting figure by itself may not communicate any meaningful information but when expressed as a relative to some other figure.transactions. which have been behind the balance sheet changes. Ratio Analysis Ratio analysis is a powerful tool of financial analysis. it may be definitely providing some other figure. Fund flow analysis reveals the changes in working capital was obtained and the purpose for which it is used.

however. performs among others. Commercial banks and Co..operative banks have penetrated in to the rural areas and possess a three-tire federal character – a state Co.operative society at the village level. a central Co. The Indian money market. regulation and development of others constituent of the money market. The RBI. is characterized by the existence of both the unorganized and the organized credit agencies which meet the credit needs of the various sectors of the economy. as the central bank of the country.INDUSTRIAL PROFILE INTRODUCTION Banking system occupies an important place in a nation‟s economy.operative banks. The organized sector of the money market consists of the Reserve Bank. Bank is an indispensable institution in a modern society and forms the core of the money market of the advanced countries. 5 .Operative bank at the district level and primary Co. the functions of supervision. The Co.operative bank at the apex (state) level. The money lenders and indigenous bankers constitute the unorganized money market.

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For this two reasons were responsible. This has made it very string political leaders belonging to all political parties try to have their maximum control over the societies. Till independence the whole movement was under the influence and control of the government. CO-OPERATIVE BANKS The co-operative bank movement was officially launched in India in 1904 after the famous prescription of Nicholson to “find Raiffeisen”.CO-OPERATIVES IN INDIA In 1904. It‟s only aim was to implement Governmental policies and officers to the movement received instructions from the government.tire structure. During this period movement was free from politics. These co-operative society was expected to replace the money-lenders and provide loans to the farmers for productive purposes. Firstly at that time political leaders were agitation and the leaders of the movement did not like to associate themselves with the movement to avoid the annoyance of the government. the co-operative movement was started in this country largely with a view to provide agriculturists with finance at low rates of interests. It was highly bureaucratized. Since the very beginning of India‟s freedom stress has been laid on encouragement to co-operative movement. 7 . But situation has taken a different turn since independence. Secondly political leaders themselves felt that the whole movement was so week that no useful purpose will be served by controlling it. It represents a three.

are in turn dealt by the state co-operative banks. 8 . To begin with the. Co-operative banks mobilize the saving of the members and non-members by including the habit of thrift and self help and lend the fund so raised to those who can profit by them. but now limited liability is the accepted principle as it is with central and state Co-Operative banks and land development banks. These two broad functions coupled with a few others make them look like commercial banks. the Central CoOperative Banks (CCBS) the middle level and the State Co-Operative Banks (SCBs) the top lour as apex institutions.Primary Agricultural Credit Societies (PACSs) forming the ground flour. Whereas the primary societies deal directly with individuals. the central banks deal with primaries. primary credit societies were established with unlimited liability.

Financial analysis is based upon monetary factors are ignored 9 . Non availability of information that is confidential to the management 6. The availability of information is limited due to time factor 4. Figures are historical in nature 3. The study is purely based on the financial statement 2. To make comparative study for the past five years 4. 5. To study the profitability position of the bank 3. Second objectives: 1. To study the liquidity position of the bank 2. 1. Any conclusion arrived at are purely based on this period of time are need not necessarily represent the whole life span of the bank. To study the solvency position of the bank LIMITATION OF THE STUDY Researcher has faced the following limitations in the present study. The study is limited to the three years period. To study the operational efficiency of then bank 5.OBJECTIVE OF THE STUDY The main objective of the studies were: Primary objective: 1. To study the financial performance of the bank.

Research Design A research design is an arrangement of condition for collection and analysis of data in manner that aims to combine relevance to the research purpose with economy in procedure. Research is an art of scientific investigation according to Clifford Woody “Research comprises defining and redefining problems.RESEARCH METHODOLOGY Research methodology is a specific and systematic search for pertinent information on a specific topic. Period of study The study cover a period of five years as the bank prepares the financial statement quarterly basis. Research methodology is the systematic way to solve problems. Analytical Research In analytical research the researcher has to use the facts and information already available and analyze the critical evaluation of the material. 10 . IT is the description. explanation and justification of various methods of conducting research. at last careful testing the conclusion to determine whether they fit the formulated hypothesis”. formulating and evaluating data. The research design adapted for the study is analytical in nature. Research Problems To analyze the financial performance of a bank.

Primary Data The primary data is collected with the help of personal discussion.Data Collection The analysis of financial condition and performance necessitate accurate and reliable data. It is taken from the published sources of the bank is financial statement. Therefore the data for present day is collected with the help of primary and secondary sources. Secondary Data Secondary data is mainly used for the study. Tool Used Ratio analysis Comparative Balance Sheet 11 .

quick disposal of customers giving no room for any complaint and emphasizing the need of customer relationship as a vital goal. 12 . the bank has emerged a commanding position as it was classification as Class 1 Special Grade Bank.2628. being the highest classification in this group in Kerala State. One among the Directors is elected as president of the bank and monitors the day to day affairs of the bank with the help and cooperation of all other Directors by utilizing the service of the entire dedicated and trained personnels. Due to systematic working. Another novel idea of installation A.M was also implemented by us during 2006 and they are one of the toppers in our state to extend such a valuable service to the customers of the bank. we are the First bank in Co-Operative Sector. Fully computerized in all aspects. P. The head office of the bank is at Mukkam and its address is “Karassery Service Cooperative Bank Ltd No D. Pin 673602”.T.30 AM. and ends at 7PM. The working hours of the Bank starts from 8. The computerization in the year 2000 brought about wholesome change in profile of the bank by increasing the business by leaps and bonds. Also it is noted that the bank is running in profit since its inception and retaining the colorful status of „A‟ grade in Audit classification. The affairs of the Bank is governed by an Elected Board of Directors consisting of 11 members and the tenure is limited for a period of 5 years from the date of assumption of charge. In our District. It was started on 10/10/1994.COMPANY PROFILE Karassery Service Co-operative Bank is primary agricultural service co-operative bank with its area of operation confined to Karassery Panchayath and loan lending area extended to the whole area of Kozhikode Taluk.O Mukkam Kozhikode. Bank proud to declare that our bank is the first Bank in Co-operative Sector to secure such an award in Kerala State. The bank now has a customer base of more than 45000 persons. The overall supervision of discharged of duties of the staff of the bank vests with the Secretary / Chief Executive of the Bank.

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Non agricultural loans.68 crores.41 crores and deposits is rs 122 crores. Self employment loans Small business loans to our members according their requirement with in the limit provided in the bylaws of the bank and the total amount of the loan outstanding as on date is Rs 119. The working capital of the bank as on date is Rs 146 crores. They are providing Agricultural loans. with the help of mobilizing deposits from the members of the bank. Gold loans. At present we are having 23200 members on roll in four classes as classified in the bylaws of the bank.Present Working Karassery Service Co-operative Bank is organized for the members and their families by providing them required loan for promoting agriculture and other trade/business activities in the service area of the bank.01% During the year 2010-11 the total loan issued was Rs 212 crores. An average amount of Fifteen Crores of Rupees is essential to meet the actual demands of members every month. The total paid up share capital of the bank at present is Rs 0. It is conspicuous to note that only a very negligible amount is classified as overdue. They are forced to reschedule our plan of raising funds from available sources. They are also issuing agriculture loans to members by obtaining cash credit loan from the Financing Banks. 14 . the percentage is only 3. and balance.

P Thomas U Alex Naduvath Alavikutty Abdul nazar P.Board of Directors NK Abdurahiman Paithal Haji Assain M.P Khasim N.P Dandan Patterchola Reena Prakash - President Vice President Director Director Director Director Director Director Director (SC/ST) Director (Women) 15 .

Minors can take this type shares from the bank along with their parents but they no voting right. They have no right to elect the managing committee.  B Class shares and their Rights This members is issued to nominal or associated members.MEMBERSHIP Only the persons above the age of the 18 years who were competent to enter in to contract are eligible for admission as members. who attain the age of 18 years and not of unsound mind.  A Class shares and their Rights A class membership is issued to an individual who is resident with in or its in the occupation of land in the area of operation other bank. B Class members other than minors have the right to stand as surely and to take loan on pledge of gold from bank. no right to take loan and advance from bank.  C Class shares and their Rights This type of shares to Government state Co-operative Banks. They do jnot have to pay any entrance fees. There are four classes of shares. Only A class members are entitled with the right to elect the board of management. District Cooperative Banks and other Co-operative Institutions. 16 .

small traders having license from Panchayath. semi government staff. They have right to take mortgage loan on landed property on the area of operation of bank and have no other rights. permanent government staff. co-operative local self bodies and individuals other than A class members. KDC and other institutions Deposits from members and non-members Subscription fees Donation Borrowed fund Reserves and other funds Undistributed portion of profits 17 . RESOURSES OF THE BANK Share capital Loan from government. D Class shares and their Rights This type of shares are allotted to SSI.