Shivaji University

Kolhapur

CAPTER NO – 1
INTRODUCTION TO STUDY

1.1 INTRODUCTION TO STUDY:-

As a part of BBA program the student has to undergo in plant
training
Of 30 days in an organization function area like marketing, finance, production,
HR etc.s
The entire banking sector every type of financial concepts is useful for
the bank because those financial documents like balance sheet profit &loss
account, working capital etc. Title of project study of financial statements analysis
in Rajarambapu Bank Ltd.Especially
Financial statements are prepared for decision making. They play an important
role in decision making. They play an important role in decision making for
managers.
The financial statement analysis is one of the important &useful tools
Used To Collect. The financial position of any Bank with the help of finance we
Can simply identify the financial strength as Well as weakness of bank.
It is useful to determine future earning Ability to pay interest. The analysis of
Financial statement is essential to take out the actual figures of financial
Figures.
Financial management as we take it today is that managerial activity.
This Concerned with planning and controlling of the firm’s financial
Resource.

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1.2 OBJECTIVE OF STUDY:-

The study is undertaken to achieve following objectives
1. To study concept of financial statement and analysis.
2. To study financial techniques & analysis of Rajarambapu Bank Co. Ltd.
3. To study financial stability profitability of Rajarambapu Bank Co. Ltd. by using
Different techniques.
4. To study trends of balance sheet for last 3 years.
5. To study factors i.e. internal or external this is responsible for comparative
Statement Analysis

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1.3 IMPORTANCE OF STUDY-

1. It helps to know financial position of Rajarambapu Bank Co .Ltd.
2. It enables to understand meaning & signifies financial statement analysis.
3. It makes possible for comparative study of different years.
4. It enables to get practical knowledge of statement analysis.
5. The research enables to know the importance of financial statement analysis in the
Bank.
6. This study is useful for bank future planning.

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1.4 - SCOPE OF THE STUDY-

The study will enables of understand the importance of Balance sheet of finance
in the large banking sector & large organization. It is necessary for the management
to have certain guidelines regarding financial position. It also gives the information
about the year ended financial position of the Banking sectors and Organizational.
This report is related with the comparative statement analysis of Rajarambapu
Co-operative Bank Ltd, Peth & covers the data pertaining to the three years 2007-
2008, 2008-2009 & 2009-2010 financial performance.

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1.5 LIMITATION OF STUDY:-

Limitations of study are as follows:-

1. The financial statement analysis is calculated from the financial data provided by
the organization only.

2. In depth study of each &every concept of banking terms is not possible.

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1.6 RESEARCH METHODOLOGY-

The following methodology is adopted for collection of data. Required data for
the above study is collected through primary as well as secondary data.

1. Primary Source:-
The data for the above study is collected by having discussion with higher
authorities, finance manager of respective bank.

2. Secondary Source:-
The data collected through the secondary source is data collected from office record
such as annual report library books for study.

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2.1 Introduction to Organization

Rajarambapu co-operative Bank LTD. Peth
Tal- walawa, Dist- sangli
Phone no- 02342- 252131, 252132, 252133
E-mail- info@rajarambapubank.com
Fax- 02342- 252134
Founder member- Lat. Rajaram anant patil
Establishment Date- 11-11-1981
Slogan- Future-Trust-guarantee

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2.2 Brief Histry Of The Organisation

Veteran leader & Ex. President of Maharashtra congress committee. Shri

Rajarambapu Patil was instrumental in establishing education society, sugar factory
spinning mill, consumer stores & co-operative bank in this region. He had a vision of
developing the rural areas for which he recognized the need of banking. On 29.6.1981
walwa sahakari bank Ltd was founded after reserve bank of India’s permission bank
commenced its operation on 10.11.1981 Rajarambapu Patil was leading height of the
bank. He saw that the bank provides services to small & needy persons.
It was his endless endeavors to cater to the needs of poor farmers of this area
throughout his life. Sad demise of Rajarambapu Patil on 17.01.1984was big setback
for this region.
His followers & board members of various organizations handed over leadership
to Sheri. Jayantrao Patil in him they saw a spark of dynamism. It was unanimously
decided to rename walwa sahakari bank as Rajarambapu sahakari bank in 1984.
It was started with a capital of Rs- 5, 00,000 /- only with one office & 12
employees. Today it haves own funds of RS-48.62crores, 25branch, & 268
employees. It owns big& graceful building .All branches are fully computerized &
services to its customers.

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Board of Directors :-

Board of Directors

2009-10
Name Designation
Shri. Shamarao Dyandev patil Chairperson
Mr. Janardan Yashvant patil Vice Chairperson
Mr. Vijayrao Vithalrao patil Director
Mr. Kakaso Anandrao Yadav Director
Mr. Baburav Tukaram Hubale Director
Mr. Manik Shamrao Patil Director
Mr. Dhanaji Anandrao Patil Director
Mr Dr.Prakash Hinduro Patil Director
Mr.Sukhadev Shamrao Patil Director
Mr.Shivaji Baburao Mane Director
Mr.Sanjay Jaysing Patil Director
Mr.Shivaji Bapu Magar Director
Mr.Rajaram Tukaram Thorat Director
Mr.Ramrao Vithal Patil Director
Mr.Jotiram Ramchandra Kamble Director
Mr.Pralhad Laxaman Kulakarni Director
Mr.Sharad Sambhajirao Gaikavad Director
Mrs.Dipa Vivek Deshapande Director
Mrs.Anita Ashok Vaghani Workers Representative
Mr. Shivaji Arvind Mane Workers Representative
Mr.Rajaram Shakar Jakhale Gen. Manager, Ex. Officio
Secretary
Mr. Sharad Anandrao Bandal Consultant

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2.3 Subcidaries And Associats

Internal Auditers

Mr.U.G. Daphalapurkar And Company (C.A. Sangali)

Mr. B.B. Patil And Company (C.A. Kolhapur)
Mr. J.P. Chougule And Company (C.A. Kolhapur)
Mr. Tanajirao Jadhav And Company (C.A. Karad)

Associats

State bank of india, branch- Islampur, Karad, Satara,

State bank of Haidrabad, branch- Kolhapur
Maharashtra state co-operative bank LTD. Mumbai
Panjab national bank, branch- Kolhapur
I.C.I.C.I.bank, branch Pune

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2.4 DEPARTMENTS OF THE BANK

There are four main departments of the bank. And these four
departments are also divided in sub departments. These are shown as follows

Head Department

Account/ Recovery Loan/admi.

C.B.S. Dept Audit Dept.
Dept. Dept.

Sub Dept. Sub Dept. Sub Dept. Sub Dept.

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2.5 Future prospects

1) The bank is planning to expand its branches to
Bombay,Solapur,Ratnagiri. Under this guidance the bank is
continuosly implementing and practicing new techniques for
customer.
2) To keep the NPA on 0%

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2.6 Organization structure :-

Chairman

Vice-Chairman

Board Of Director

General Manager

Dy. General Manager

C.B.S. Accounts Loan/Administration Audit

Manager Manager
(Account) (Loan/Deposit)

Senior Officer Senior Officer

Junior Officer Junior Officer

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Clerk Legal Advisor

Peon

2.7 FINANCIAL HIGHLIGHT AS ON 31.3.2008

(Rs. In crore)
Paid up share capital 10.54
Reserve & other funds 43.31
Deposits 604.15
Loans & advances 299.59
Working capital 631.15
Net profit 3.15
Net N.P.A 0%
C.R.A.R. 11.69
No of branches 30+2(Extn.counter)
No of staff 282

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DEPOSIT RATE-

Rate of the interest of deposits us-

Current deposits NIL
Saving deposits 3.5%
Fixed deposits NIL
30days to 45 days 5.00%
46days to 90days 6.00%
91days to 180 days 7.00%
181 days to 1 year 8.00%
1years & 1 day to 3 years 10.25%
3 years & 1 day to 5 years 10.00%
5 years1 day& above 10.25%

3.1 INTRODUCTION TO FINANCIAL ANALYSIS –

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Financial statements are prepared primarily for decision making. They

play a dominant role in setting the frame work of managerial decision but, the
information provided in the financial statement is not an end in itself as a
meaningful conclusion can be drawn from these statements alone. However
making decision through analysis & interpretation of financial statement.
Financial analysis is the process of identifying the financial strength & weakness
of the firm by property establishment relationship between the items of the
balance sheet & the profit& loss account. There are various methods or
techniques used to analysis financial statement .Such, as comparative statement,
trend analysis, and common size statement schedule of change in working capital
fund flow & cash flow analysis cost volume profit analysis & ratio analysis.
The term financial statement basically includes the balance sheet & profit &
loss account concern. In the words of Kennedy
“The principal financial statement include the balance sheet the income statement
& the statement of owner’s equity or of retained earning. Although, not generally
found in practice the statement of sources & uses of working capital (fund’s
statement)is being used as a valuable analytical device which communicates
information not found the three traditional statement.” Various schedule &
appendices are also annexed to supplement the date contained in principal
financial statement.
Balance sheet can be defined as barometer to measure the financial position of
a business at a given moment of time .The balance sheet is also known as the
statement of financial position statement of asset & liabilities, statement of
resource & liabilities statement of worth .
The balance sheet is a snapshot of a company’s financial position. Thus, it
reveals the property owned by the business, the assets & the debt’s owned by the
company the liabilities.

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3.2 MEANING OF FINANCIAL ANALYSIS-

The term “Financial Analysis”, also known as analysis &
interpretation of financial statement, refer to the process of determining financial
strengths & weakness of the firm by establishment strategic relationship between the
items of the balance sheet, profit & loss account & other operative data. “Analysis
financial statement” according to me calf & Tigard is a process of evaluating the
relationship between component parts of a financial statement to obtain a better
understanding of a firms position & performance. In the words of Myers, financial
statement analysis is largely a study of relationship
Among the various financial factors in a disclosed by a single set of statement & a
study of the trend of these factors as shown in a series of statement.
The purpose of financial analysis is to diagnose the information contained in
financial statement so as to judge the profitability & financial soundness of firm. Just
like a doctor examines his patient by recording his body temperature blood pressure
etc. before making his conclusion regarding the illness & before giving his treatment.
A financial analyst analysis the statement with various tools of analysis before
commenting upon the financial health or weakness of an enterprise. The analysis the
statement with interpretations of financial statement is essential to bring out the
mystery behind the figure in the significance & meaning of the financial statement
data so that forecast may be made of the future earnings ability to pay interest & debt
maturities ( both & long term) & profitability of a sound divided policy.
The term financial statement analysis includes both analyses ‘Interpretation’. A
distinction should, therefore be made between the two terms. While the terms analysis
is used to mean the simplification of financial data by methodical classification of the
data given in the financial statement, Interpretation means explaining the meaning &
significance of the data so simplified. However, both analysis & interpretation
without analysis is difficult or even impossible. Most of the authors have used the
term analysis only to cover the meaning of both analysis & interpretation as the
objective of analysis is to study the relationship between various items of financial
statement by interpretation .We have also used the term financial statement analysis
or simply financial analysis to cover the meaning of both analysis & interpretation.

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3.3 THE NATURE OF FINANCIAL STATEMENT ANALYSIS-

The account of modern business are not entirely statement of facts, but are the
large extent expression of opinion based partly on accounting conventions, partly
on assumption explicit or implicit & partly on personal judgments. Financial
statement analysis consist of the application of analytical tools & techniques to the
data in financial statement in order to derive from them measurement & relationship
that are significant & useful for decision making The process of financial analysis can
be described in various ways, depending On the objective to be obtained, financial
analysis can be used as a preliminary screening tools of used a process of evaluation
& diagnose of managerial operating or other problem areas. Above all financial
analysis red ices reliance on intuition guesses & thus narrows the areas of uncertainty
that is present in all decision making processes .Financial analysis does not lessen the
need for Judgment but rather establishes a sound & systematic basis for its rational
application.

3.4 SOURCES OF FINANCIAL INFORMATION-

The financial data needed in the financial analysis come from many sources .The
primary sources is data provided by the firm itself in its annual report & required
disclosures. The annual report comprises the income statement. The balance sheet
& the statement of cash flows, as well as footnotes to these statements. Besides this,
information such as the market prices of securities of publicity traded corporations
can be found in the financial press & the electronic media daily. The financial press
also provides information on stock price indices for industries & for the market as a
whole.

1) METHODS OR TECHNIQUES OF FINANCIAL ANALYSIS-

The analysis & interpretation of financial statement is used to determine the
financial position &result of operations as well .A number of methods or devices
are
Use to study the relationship between different statements. An effort is made to sue
those devices which clearly analyses the position of the enterprise.

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The analytical tools or techniques of financial statement analysis among the

financial statement items of a single set of statement along with the changes that
have taken place in these items in successive years. The following are the more
commonly used techniques in analyzing financial statement –
A. Comparative Statement-
B. Trend Analysis-
C. Common Size Statement-
D. Funds Flow Statement-
E. Cash Flow Statement-
F. Ratio Analysis-
G.Net Working Capital Analysis-

A) Comparative Statement-
The comparative a financial statement are statement of the financial position at
different periods of time. The elements of financial position are shown in a
comparative from will be covered in comparative statement from practical point of
view generally, two financial statement (balance sheet & income statement)are
prepared in comparative from for financial analysis purpose. Not only the
comparison of the figures of two periods but be relationship between balance sheet
& income statement enables an in depth study of financial position &operative
result. The comparative statement may show.

1) Absolute figure (Rs. amount)

2) Change in absolute figure i.e.-increase or decrease in absolute figures.
3) Absolute data in terms of percentages.
The analyst is able to drawn useful conclusions when figures are given in a
comparative position. The figures of sales for a quarter, half- quarter or one year
may tell only the present position
of sales efforts when sales figures of current period then the analyst will be able
to study the trends of sales over different periods of time similarly, comparative
figures will indicate the trend & direction of a financial position & operating
result. The financial data will be comparative only when some accounting
principles are used in preparing this statement. In case of any deviation in the use

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of accounting principle this must be mentioned at the foot of financial statement

&analyst should be careful in using this statement.
The comparison of financial statements the data related to previous years
must be given .While comparing a financial statement the analyst must see that
during different years the same accounting principles are followed, if the figures
are arrived by using different accounting principle the utility of comparative
financial statement will be nil. The difference in financial statements may be due
to –
a. Difference in management policies-
b. Difference in accountant’s opinion-
c. Difference in experience knowledge, judgment of accountant.
d. Difference in nature & size of business
e. Difference in accounting
Principles adopted.
Generally there is great difference between the financial statements
prepared by the different companies.
The following comparative financial statement can be prepared
i. Comparative Balance Sheet-
ii. Comparative Income Statement
iii. Comparative Profit & Loss Account-
iv. Comparative Fund’s Flow Statement-

A. Comparative Balance Sheet-

The comparative balance sheet analysis is the study of the trend of the
same items, groups of items & the computed items in two or more balance sheet of
the same business enterprise on different dates. The changes in periodic balance
sheet items reflect the conduct of business. The changes can be observed by
comparison of the balance sheet at the beginning & at the end of the period & these
changes can help in forming an opinion about the progress of an enterprise. The
comparative balance sheet has two columns for the data of original balance sheet. A

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third column is used to show increase in figures .The fourth column may be added
for giving percentages of increase or decrease.

B. Comparative Income Statement-

The income statement gives the results of the operations of a business. The
comparative income statement gives an idea of the progress of a business over a
period of time. The changes in absolute data in money values & Percentages can be
determined analysis the profitability of the business .Like comparative balance
sheet; income statement also has four columns. First two columns give figures of
various items for two year. Third & fourth columns are used to show increase or
decrease in figures in absolute amounts & percentages respectively.

C. Comparative Profit & Loss Account-

The profit & loss account of an organisation reveals its profitability.
Earning capacity & managerial efficiency study of profit & loss account for more
than 1 year assists in estimating managerial efficiency.

D. Comparative Fund’s Flow Statement-

Just as one prepare the comparative balance sheet & comparative income
statement in the same fashion a comparative funds flow statement may also be
prepared. The comparative funds flow statement compares various sources & uses of
working capital funds.

2) Trend Analysis-
The financial statement may be analyses by computing trend of service of
information .This methods determines the direction upwards or downwards &
involves the computation of the percentage relationship that each statement item
bears to the same item the computation of the percentage that each statement item
bears to the same item in base year. The information for a number of years is taken
up & one year, generally the first year is taken a base year .The figures of the base
year are taken as 100 & trend of figures, whether upwards or downwards.

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e.g. - If sales figures for the year 2000 to 2005 are to be studied, then sales of 2000
will be taken as 100 & the percentages of sales for all other years will be calculated
in relation to the base year, i.e.2000 suppose the following trends are determined.
Trend analysis depicts the changes in an item or a group of item of financial
statement over a period of item. Trend figures are index numbers giving a birds eye-
view over a period of item .A normal year is chosen as the base year & the figures
of that year are taken equal to a hundred & index number of the remaining years
under study of that particular item are calculated. It is dynamic & horizontal type of
analysis indicating whether the enterprises direction of trend is upward or
downward. Based on the past trend can be made about the future.
In the other wards, it can be said that every business does not remain stable.
There are many up’s& downs ‘ward in business. Hence, the position of the business
cannot be judge only by seeing its present situation for proper judgment. We need
its past data. Trend analysis is a method by which we can depict the general
tendency of the data. Trend analysis makes it easy to understand the changes in an
item or a group of item over the changes in an item& to draw conclusion regarding
the changes in the data. It is dynamic methods of analysis showing the changes over
a period of time. For proper trend analysis of 5 or more year.
There are the various methods of the trend analysis.
 Absolute data chart
 Change in absolute data.
 Chain base index numbers.
 Simple index numbers.
 Trend ratio or trend percentages.
 Graphs & diagrams.

3) COMMON SIZE STATEMENT-

The common size statement, balance sheet & income statement are shown in
analytical percentages. The figures are shown as percentages of total assets, total
liabilities & total sales. The total assets are taken as 100 different assets are
expressed as percentages of the total. Similarly, various liabilities are taken as a
part of total liabilities. These statements are also known as component

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percentages of the total 100. The short –coming in comparative statements &
trend percentages where changes in items could not be analyst is able to access
the figure in relation to total values. The common size statement may be prepared
in the following ways-
The total of assets or liabilities is taken as100. The individual assets are
expressed as percentages of total assets, i.e. 100 & different liabilities are
calculated in relation to total liabilities.
e.g.- If total assets are Rs- 5 lakhs & inventory values is Rs- 50,000/- then it will
be 10% of total assets.
50,000 *500
5, 00,000
The common size statement is also known as “component percentage
statement.” or 100
Statement or “vertical statement”. It is techniques under which the total of assets
or liabilities in case of balance sheet & the figure of net sales in case of profit &
loss account are taken equal to 100, & the percentage of technique of analysis is
helpful when we wish to compare one company with another. The presentation of
the data in percentages form eliminates problems relating to differences in
organisation size.
According to Kennedy-
If the balance sheet & income statement data are shown in analytical
percentages – that is percentages of total assets, total liabilities & owner’s equity &
total net sales – a common base for comparison is supplied.
The following common size statement can be made-
 Common Size balance sheet.
 Common size income statement.
 Common size funds flow statement.
 Common size Cost statement.
 Common size sales statement.

2) COMMON SIZE BALANCE SHEET-

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A statement in which balance sheet items are expressed as the ratio of each
asset to total & the ratio of each liability is expressed as a ratio of total liabilities is
called common size balance sheet.
The common size balance sheet can be used to compare companies of differing
size. The comparison of figures in different period is not useful because total figures
may be affected by a number of factors. It is not possible to establish standard norms
for various assets. The figures from year may be not being studied & even they may
not give proper results.

3) COMMON SIZE INCOME STATEMENT-

The items in income statement can be shown as percentages of sales to
shown the relation of each item to sales. A significant relationship can be established
between items of income statement & volume of sales. The increase in sales will
certainly increases selling expenses & not administrative or financial expenses. In
case the volume of sales increase to considerable extent administrative & financial
expenses may go up. In case, the sales are decline the selling expenses should be
reduced at once. So, a relationship is establishing between sales & other items in
income statement & this relationship is helpful in evaluating operational activities of
the enterprise.

4) FUND’S FLOW STATEMENT-

The word ‘Funds’ has different interpretation. In the border sense it includes
all resources used in the business whether in the form of men, material, money
machinery methods etc. On the other hand some use it in the narrow sense &
include in the terms funds only cash resources of the funds flow statement is
preferred to use the term in the intermediate sense working capital i.e. the different
between the current assets & current liabilities.
The funds flow statement is a financial statement which reveals the methods
by which the business has been financed & how it has used its funds between the
operating & closing balance sheet dates. According to, Author, ‘The funds flow
statement describes the sources from which additional funds were derived & the

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uses to which these funds were put’. The analysis of such statement over periods of
time clearly shows from which past activities have been financed & brings to high
light statement is which such funds have been put. The statement is known by
various titles, such as statement of sources & applications of funds, statement of
changes in working capital, where Got & Gone statement & statement of resources
provided & applied.
The fund flow statement shows the sources & uses from where funds were
obtained & the uses to which these funds were put in during a period of time. The
sources may due to an increase in capital & loan, by sales of fixed assets &
investment & because of operating profit. The uses may be the consequence of a
increase in capital & loans by purchase of fixed assets & investment & on account
of suffering of operating losses.

OBJECTIVES OF FUNDS FLOW STATEMENT-

Generally a business prepare two financial statement i.e. position statement or
balance sheet & income or profit & loss account. The former reflects the state of
assets & liabilities of a company on a particular date where as the latter tells about the
result of operations of the company over a period of a year. These financial
statements have utility but they do not reveal has sources & their uses over the year.
e.g.- A company which has reportedly made substantial profits during the year may
discloser to it’s surprise that there is not enough liquid funds to pay for dividend &
income tax because of profit tied up in other assets& is always after the bank
authorities to get the cash credit or bank overdraft facility. In order to remove this
defect, another statement known as funds flow statement is prepared to know the
periodic increase or decrease of working capital of an enterprise. The statement
highlights the sources & applications of working capital & reveals changes in the
financial structure of the company between the two balance sheet dates. Thus the
main purposes of such statement are-
1. To help to understands the changes in assets & assets sources which are not
readily evidence in the income statement or the financial position statement.
2. To inform as to how the loans to the business have been used.
3. To point out the financial strengths & weakness of the business.
5) CASH FLOW STATEMENT-

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Cash is the basic input needed to keep the operations of the business
going on a continuing basis, it is also the financial output expected to be realized by
selling the product manufactured by the manufacturing unit. Cash is both the
beginning & the end of the business operations.
The management of cash also assumes importance because it is difficult
predict cash inflow & outflows accurately & there is no perfect coincidence between
the inflows & outflows exceeding cash outflows exceeding inflow or cash inflows
exceeding cash outflows. Cash flow statement is one important tool of cash
management because it throws light on cash inflows & cash outflows of a particular
period.
A funds flow statement based on working capital is very useful in long range
financial planning but this statement may conceal or exclude too much. This is so
because it does not take into consideration the moreover ,this statement treats
increase in receivables, inventories & statement treats increase in account payable
outstanding expenses & bank overdraft treated as equivalent to increases in cash.
This is not decrease cash or make cash available Sundry creditors, bills payable &
outstanding expenses become payable in the next priod.Similarly inventories &
receivable’s may make cash available in the next period. It is quite possible that
there may be sufficient working capital as revealed by the funds flow statement &
still the company may be due to an accumulation of inventories & an increase in
trade debtors caused by a slowdown in collections. In such a situation a cash flow
statement is more useful because it gives detailed information of cash inflows &
cash outflows. Cash flow statement can be prepared from the made available from
comparative balance sheet, profit & loss account & additional information.

UTILITY OF CASH FLOW STATEMENT-

Cash flow statement is very useful to the management for term planning. Cash is
the most liquid assets & is required to pay to the suppliers to purchases of the
business & pay dividend to meet the expenses of the business & pay the debts
maturing in the near future. This will help the management to make the reliable cash
flow projection for the immediate future & will tell the surplus or deficiency of cash
so that the management may be able to make plan for investment of surplus cash or
to tap the sources where from the deficiency is to be met. Thus, it is an important

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financial tool of the management as it helps in the efficiency cash management

discloses the movement of cash helps in the internal financial management &
discloses success or failure of cash planning.

6) RATIO INTERPRETATION-
Ratio is the relationship between the figures expressed mathematically. Ratio
analysis is the process of identifying the financial strength & weaknesses of the firm
by properly establishing relationship between the items of the balance sheet & profit
& loss account

TYPES OF RATIO-
A) Liquidity Ratio-

1. Current ratio
2. Liquid ratio or quick ratio-
3. Cash ratio-
4. Debtors turnover Ratio-
B) Profitability Ratio-
1. Return on capital employed-
2. Return on share holder investment-
3. Earning price ratio-
C) Leverage ratio-
1. Equity ratio-
2. Fixed assets ratio-
3. Debt to equity ratio-

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LIMITATION OF FINANCIAL ANALYSIS-

Financial statement conveys the impression of finality completeness & exactness.
Financial statements are of paramount importance to executives, investors, creditors
government & personnel employed in a concern, however the financial statement
have some definite limitations.
“The preliminary point that should be directed to your attention is that those who
use the data of corporate accounting should be aware of limitations inherent in
conventional accounting & should not undertake to make use of these data for the
purposes for which they are not suitable.”
Financial analysis is a powerful mechanism of determining financial strengths &
weakness of a firm. But, the analysis is based on the information available in the
financial statements. Thus, the financial analysis suffers from serious inherent
limitations of financial statement as studied. The financial analyst has also to be
careful about the impact of price level changes windows –dressing of financial
dressing of financial statement, changes in accounting policies of accounting concepts
& conventions & personal judgment etc. Some of the important limitations of
financial analysis are however, summed up as below.
It is only a study of interim reports financial analysis is based upon only monetary
information & non- monetary factors are ignored. It does not consider changes in
price level. As the financial statement are prepared on the basis of a going concern. It
does not exact position. Thus accounting concept & conventions causes a serious
limitations to financial analysis. Changes in accounting procedure by a firm may

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often make financial analysis misleading. Analysis is only a means & not an end
itself. The analyst has to make interpretations & draw his own conclusions. Different
peoples may interpret the same analysis in different ways.

Chapter No-4

Analysis
&
Interpretation
Of
Data

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Table No. 1 BALANCE SHEET

AS ON 31MARCH 2008
Rajarambapu co-operative bank Ltd. Peth

LIABILITIES AMOUNT ASSETS AMOUNT

1. Share Capital 617.36 1.Cash & Bank balance 1426.32

2. General reserve & 4245.10 2.Deposits in other bank 8942.07

other fund
3.Deposit & other 3.Investment 12456.75
accounts
1.Fixed Deposits 33377.22 4.Loans
2. Saving Deposits 5185.58 1.short-term loan 7553.57
3. Current Deposits 2599.28 2.midium-term loan 16089.64
4.Matured Deposits 2058.50 Long-term loan 1669.06

5.bills from collection 125.75 5.bills for collection 125.75

6.provision for dobtfull 2640.06 6. fixed assets 459.34
intrest
7.intrest payable 54.75 7. intrest receiable 2811.41
8current liablities 717.48 8. account receiable 182.55

9.profit 95.36

Total 51716.44 Total 51716.4431

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1) Profit of 31 march 2009 182.68.

2) Fixed assets 463.13 in 2009.
3) Share capital 825.64 in 2008-2009.
4) Current Deposits 2164.17in 2008-2009.

Table No. 2
BALANCESHEET
AS ON 31MARCH 2009
Rajarambapu co-operative bank Ltd. Peth.
Rs. In lakh
LIABILITIES AMOUNT ASSETS AMOUNT
1. Share Capital 825.64 1.Cash & Bank balance 1776.79

2. General reserve & other 4757.56 2.Deposits in other bank 15340

fund
3.Deposit&other accounts 3.Investment 14510.70

1.Fixed Deposits 41720.18 4.Loans

2. Saving Deposits 6608.06 1.short-term loan 7767.51

3. Current Deposits 2164.17 2.midium term loan 17238.75

4matured deposit 2241.25 3.long-term loan 2025.78

5.bills from collection 121.14 5.bill for collection 121.16

6.Provision for doubt full 2482.34 6.fixed assets 463.13

interest

7. Interest Payable 271.44 7intrest receivable 2778.34

8. current liablities 182.68 8.accout receiable 332.80

Total 62354.96 Total 62354.96

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1) Profit of 31 march 2009. 182.68.

2) Fixed assets 463.13 in 2009.
3) Share capital 825.64 in 2008-2009.
4) Current Deposits 2164.17in 2008-2009.

Table No. 3 BALANCESHEET

AS ON 31 MARCH 2010
Rajarambapu co-operative bank Ltd. Peth
Rs. In lakh
LIABILITIES AMOUNT ASSETS AMOUNT

1. Share Capital 1054.08 1.Cash & Bank balance 2131.46

2. General reserve & 4931.76 2.Deposits in other bank 20510

other fund
3.Deposit & other 3.Investment 13816.28
accounts
1.Fixed Deposits 43300.43 4.Loans
2. Saving Deposits 10854.44 1.short-term loan 9407.20
3. Current Deposits 3391.06 2.midium-term loan 18125.93
4.Matured Deposits 2869.68 3.Long-term loan 2426.56
5.bills from collection 108.69 5.bills for collection 108.69
6.provision for dobtfull 2530.46 6.fixed assets 742.39
intrest
7.intrest payable 159.87 7.intrest receivable 2937.26
8current liablities 1031.23 8.Account receivable 341.64

9.profit 315.71

Total 70547.41 Total 70547.41

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Table No. 3.1 BALANCESHEET

AS ON 31 MARCH 2008/09/10
Rajarambapu Patil co-operative bank Ltd (Rs. In lacs)
Particular 2008 2009 2010

1. Share Capital 617.36 825.64 1054.08

2. General reserve & other 4245.10 4757.56 4931.76
fund
3.Deposit & other accounts
1.Fixed Deposits 33377.22 41720.18 43300.43
2. Saving Deposits 5185.58 6608.06 10854.44
3. Current Deposits 2599.28 2164.17 3391.06
4.matured deposit 2058.50 2241.25 2869.68
5.bills from collection 125.75 121.14 108.69
6.provision for doubtfull 2640.06 2482.34 2530.46
intrest
7..intrest pyable 54.75 271.44 159.87
8. current liablities 717.48 980.30 1031.23
9.profit 95.36 182.68 315.71
TOTAL 51716.44 62354.96 70547.41
B) Assets
1.Cash & Bank balance 1426.32 1776.79 2131.46
2.Deposits in other bank 8942.07 15340 20510
3.Investment 12456.75 14510.70 13816.28
4.Loans
1.short-term loan 7553.57 7767.51 9407.20
2.midium-term loan 16089.64 17238.75 18125.93
3.long-term loan 1669.06 2025.78 2426.56
4.Bill for collection 125.75 121.16 108.69
5.fixed assets 459.34 463.13 742.39
6. Interest receivable 2811.41 2778.34 2937.26
7. Account Receivable 182.55 332.80 341.64

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Total 51716.44 62354.96 70547.41

Table No- 3.2

Rajarambapu Co-operative Bank L.T.D
Profit& Loss Account As On 2007-08. 2008-09, 2009-10
(Rs in lacs)
Sr. Particular 2007-08 2008-09 2009-10
No
Debit Side
A) To Interest Payable
1. To Interest on Deposit 3045.44 4160.72 4609.61
2 To Interest on loan 5.31 1.77 0.33
3. To Rebate 67.41 62.05 105.67
4. To Salary& Allowances 397.56 431.64 547.31
5 To Direct body meeting 2.28 3.01 3.17
allowance & travelling
expenses
6. To Office rent, taxes, lighting& 85.03 95.03 127.60
Insurance.
7. To Telephone , postage, & 2.99 0.36 13.04
telegram
8. To Audit Fee 10.68 22.89 8.61
9. To Depreciation 37.16 40.12 75.46
10. To stationary, printing& 10.24 10.34 19.19
advertisement
11. To Other Expenses 88.12 116 159.46
12. To provision - - 470
12. To Profit 415.98 764.36 315.69

Total 4168.20 5108.33 6445.11

Credit Side
B) By Interest Received
1. By Interest On Investment 1314.88 3616.14 3780.07
2. By Interest On Loan 2795 2000.76 2611.18
3. By Commission & Brokage 48.78 41.43 30.25
5. By Other Income 9.52 23.77 23.59
6. By Investment Fluctuation - 26.23 -
Total 4168.20 5708.34 6445.11

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Table No- 3.3

Comparative Statement Analysis
Comparative Balance Sheet
Rajarambapu Co-operative Bank ltd, Peth
Base Year -2007-2008
(Rs in lacs)
Sr. Particular 2007-08 2008-09 2009-10
no Absolute Change Change In %
In
2008-09 2009-10 2008-09 2009-10
A) Liabilities
1. Share 617.36 825.64 1054.08 208.29 436.73 33.74 70.74
Capital
2. General 4245.10 4757.76 4931.75 512.46 686.65 12.07 16.17
reserve &
other fund
3.Deposit
& other
accounts
1.Fixed 33377.22 41720.18 60415.61 8342.96 27038.39 25 29.73
Deposits
2. Saving 5185.58 6608.06 10854.43 1422.48 5668.86 27.43 1.09
Deposits
3. Current 2599.28 2164.17 3391.06 -435.11 791.78 -16.74 30.46
Deposits
4.Matured 2058.50 2241.25 2869.68 182.75 811.19 8.88 39.41
Deposits
4. Bills For 125.75 121.16 108.68 -4.61 -17.06 -3.66 -13.57
Collection
5. 2640.06 2482.34 2530.46 -157.72 -109.59 -4.15
Provision
for doubt
full interest
6.Interest 54.75 271.44 159.86 216.69 105.11 395.78 192
Payable
7.Current 717.48 980.30 1031.23 262.70 313.75 36.63 43.73
Liabilities

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profit 95.36 182.68 315.71 87.32 250.35 91.57 231.07

TOTAL 51716.40 62354.97 70547.35 10638.2 12433.03 120.57 136.41

B) Assets
1.Cash & 1426.31 1776.79 2131.46 350.47 705.14 24.57 49.44
Bank
balance
2.Deposits 8942.07 15340.00 20510 6397.93 5170 71.55 129.36
in other
bank
3.Investme 12456.75 14510.70 13816.28 2053.95 1359.53 16.49 10.91
nt
4.Loans
1.Short 7553.57 7767.51 6407.20 213.94 1853.64 2.83 24.54
term cash
credit
O.D/bill of
exchange
etc.
2.Medium 160,89.64 17238.75 18125.92 1149.11 2036.28 7.14 12.65
from loans
3.Long 1669.06 2025.78 2426.55 356.72 757.50 21.37 45.38
term loan
5.Bill for 125.75 121.16 108.68 -4.59 -17.06 -3.65 -13.57
collection
6. Fixed 459.34 463.13 742.38 3.79 283.05 0.82 61.62
assets
7. Interest 2811.41 2778.34 2937.25 -33.07 125.85 -1.18 4.47
receivable
8. Account 182.55 332.80 341.64 150.25 159.10 82.30 87.15
Receivable
Total 51716.44 62354.96 70547.41 10638.2 12433.03 120.57 136.41

1) Balance sheet
2) Capital & Liabilities

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Above table of comparative balance sheet shows that, reserve

surplus, Profit, creditors, deposits, depreciation are increased in year 2009-2010with
respect to the 2007-2008
1. Profit is increased by 250.35lacs i.e.262.53% in year 2009-2010as compared to
year 2007-2008
2. Reserve & surplus is increased by 686.65lacs i.e. 70.74% in the year 2009-2010as
compared to year 2007-2008
3 provision for doubt full interest and bills for collection is the decrease where
interest payable, deposites are increase in the base year.
4. Current liabilities including & other account payable is the increased in base year.

From the comparative statement of the year 2009-10,share capital and deposits
are increased with respect to the year 2007-08 at same bills for collection, provision
for doubtfull intrest is decreased.
1. Share capital has increased by 436.63lacs i.e.70.74%
2. General & other fund has increased by 686.65lacs i.e. 16.17%.
3. Saving deposits has increased by 5668.86lacs i.e. 109.31%.
4. Current deposits have increased by791.78lacs i.e. 30.46%.
5. Fixed deposits has increased by 27038.39lacs i.e. 81%.
6. Matured deposits have increased by 34.57lacs i.e.1.56%.
7. Provision for doubt full interest has decreased 109.59lacs i.e. 4.15%.
8. Interest payable has increased 105.11lacs i.e.191.98%.
9. current liabilities has increased 313.75lacs i.e. 43.73
10.Profit has increased 250.35lacs i.e. 262.53%.

2) Assets –
The above table of comparative statement of 2008-2009shows that , the
fixed assets, deposits in other bank investment medium term , long term loans are
increased with respect to the year 2007-2008.
1. Deposits in other bank has increased by 6397.73lacs i.e. 71.55%.
2. Short term cash credit overdraft bill of exchange has increased by 213.94 lacs
i.e. 2.83%.

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3. Long term loan has increased by 356.72lacs i.e. 21.37%.

4. Medium term loans have increased by 1149.11lacsi.e.7.14%.
5. Fixed assets have increased by 3.79lacs i.e.0.84%.
6. Interest receivable has decreased by 33.06lacs i.e. 1.17%.
7. Cash & bank balance has increased by 350.46lacs i.e. 24.57%.
8. Investment has increased by 2113.35lacs i.e.16.96%.
9. Account receivable has increased by 150.26lacs i.e. 82.32%.
10. Bills for collection have decreased by 4.59lacs i.e.3.65%.

Table No- 3.4

Comparative Profit & Loss Account
Rajarambapu co- operative Bank L.T.D
Base Year-2007-2008
(Rs in lacs)

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Sr. Particular 2007-08 2008-09 2009-10 Absolute Change % Change

no In In
2008-09 2009-10 2008-09 2009-10

Debit Side
A) To Interest
Payable
1. To Interest on 3045.44 4160.72 4609.61 1115.25 1564.18 36.62 51.36
Deposit
2 To Interest on 5.31 1.77 0.23 -3.54 -5.08 -66.66 95.67
loan
3. To Rebate 67.41 62.05 105.68 -5.56 38.27 -5.50 56.77

4. To Salary& 397.56 431.65 547.32 34.09 149.76 8.87 37.67

Allowances
5 To Direct body 2.28 3.01 3.18 0.73 0.9 32.02 39.47
meeting
allowance &
travelling
expenses
6. To Office rent, 85.03 95.04 127.61 10.07 42.58 11.84 50.07
taxes, lighting&
Insurance.
7. To Telephone , 2.99 0.36 13.04 -2.63 10.05 -87.96 336.12
postage, &
telegram
8. To Audit Fee 10.67 22.90 8.62 12.22 -2.06 114.42 -19.29
9. To Depreciation 37.15 40.13 75.46 2.97 3.83 7.99 10.31

10. To stationary, 10.24 10.34 19.19 0.1 8.95 0.98 87.40

printing&
advertisement
11. ToOther 88.12 116.00 149.47 27.88 61.36 31.64 69.63
Expenses
12. To Profit 415.98 764.36 315.69 348.38 470 83.75 24.11

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Total 4168.20 5708.34 6445.11 1516.43 2276.91 136.95 154.62

B) By Interest
Received
1. By Interest On 2794.99 3616.14 3780.07 -794.23 1296.31 175.32 98.59
Loan
2. By Interest On 1314.87 2000.77 2611.18 2305.26 985.07 -24.42 35.24
Investment
3. By commission 48.79 41.43 30.25 -7.36 -18.54 -15.08 -38
and brokarage
4. By Other 9.53 23.77 23.59 16.70 14.07 175.24 147.64
Income
5. By Investment - 26.23 - - - -
& Fluctuation
Fund

Total 4168.2 5708.33 6445.11 1516.43 2276.91 136.95 154.62

Profit & Loss Account-

Debit Side
Above table of comparative profit & loss account indicates the in year 2008-2009
other debit has increases with compared to 2007-2008.
1. Interest on deposit increased by 1125.29lacs i.e. 36.62%in 2007-2008
2. Interest on loan has decreased by 3.53lacs i.e. 66.60%
3. Rebate has decreased by 5.35 lacs i.e. 7.94%
4. Salary & allowance has increased by 34.08 lacs i.e.8.57%
5. Office rent has in increased by 10 lacs i.e. 42.57%

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6. Depreciation has increased by 2.97lacs i.e.0.08%.

7. Stationary, printing & advertisement increased by 0.11 lacs i.e.1.07%.
8. Profit has increased in 348.39lacs i.e. 83.75% in 2008-2009.

While to comparative statement of 2009-2010 the Interest on deposits,

salary & allowances, travelling expenses office rent increased with respect to the year
2007-2008
1. Interest on deposit has increased by 0.04 lacs i.e. 0.75%.
2. Salary & allowances has increased by 149.75lacs i.e. 37.67%.
3. Office rent has increased by 42.57 lacs i.e.0.50%.
4. Travelling expenses has increased by 0.9 lacs i.e.39.65%.
5. Stationary has increased by 8.96lacs i.e.87.58%.
6. Depreciation has increased by 38.31 lacs i.e.103.12%.
7. Audit fee has decreased by 2.06 lacs i.e. 0.19%.
8. Profit has decreased by 100.28 lacs i.e.0.24%.
1. Interest on loan is decreased up to 0.24 lacs i.e.11.94%.

Credit Side
1. Interest on loan has increased by 985.08 lacs i.e. 32.24%.
2. Interest on investment has increased by 1296.31 lacs i.e. 98.59%.
3. Commission & brokerage has decreased by 15.06 lacs i.e. 37.99%.
4. Other income has increased by 14.07lacs 147.99%

Table No. 3.5 2. COMMON SIZE STATEMENT

COMMON SIZE BALANCE SHEET OF
RAJARAMBAPU CO- OPERATIVE BANK L.T.D.
BASE YEAR 2006-2007
(Rs in lacs)
Sr. Particular 2007-08 2008-09 2009-10
No Figure in %
2007-0/8 2008-09 2009-10

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A) Liabilities
1. Share Capital 617.36 825.64 1054.08 1.19 1.32 1.49

2. General 4245.10 4757.56 4931.76 8.21 7.63 6.99

reserve & other
fund
3.Deposit &
other accounts
1.Fixed Deposits 33377.22 41720.18 43300.43 64.54 66.90 61.38
2. Saving 5185.58 6608.06 10854.44 10.03 10.59 15.39
Deposits
3. Current 2599.28 2164.17 3391.06 5.02 3.47 4.81
Deposits
4.Matured 2058.59 2241.25 2869.68 3.98 3.59 4.07
Deposits
4. Bills For 125.75 121.14 108.68 0.24 0.19 0.15
Collection
5. Provision for 2640.06 2482.34 2530.46 5.10 3.98 3.59
doubt full
interest
6.Interest 54.75 271.44 159.87 0.10 0.43 0.23
Payable
7.Current 717.48 980.30 1031.23 1.39 1.61 1.46
Liblities

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8.Profit 95.36 182.68 315.71 0.18 0.29 0.45

Total 51716.44 62354.96 70547.41 100 100 100
B) Assets
1.Cash & Bank 1426.32 1776.79 2131.46 2.76 2.85 3.02
balance
2.Deposits in 8942.07 15340 20510 17.29 24.60 29.07
other bank
3.Investment 12456.75 14510.70 13816.28 24.08 23.27 19.58
4.Loans

1.Shortterm 7553.57 7767.51 9407.20 14.60 12.46 13.33

cash credit
O.D/bill of
exchange etc.
2.Medium from 16089.64 17238.75 18125.93 31.11 27.65 25.70
loans
3.Long term 1669.06 2025.78 2426.56 3.23 3.25 3.44
loan
5.Bill for 125.75 121.16 108.69 0.24 0.19 0.15
collection
6. Fixed assets 459.34 463.13 742.39 0.89 0.74 1.05

7. Interest 2811.41 2778.34 2937.26 5.44 4.45 4.16

receivable
8. Account 182.55 332.80 341.64 0.36 0.53 0.49
Receivable
Total 51716.44 62354.96 70547.41 100 100 100

Table No. 3.6 COMMON SIZE

PROFIT & LOSS ACCOUNT

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RAJARAMBAPU CO- OPERATIVE BANK L.T.D.

BASE YEAR 2006-2007
(Rs in
lacs)
Sr. Particular 2007-08 2008-09 2009-10 Figure in %
No 2007-08 2008-09 2009-10
Debit Side
A) To Interest
Payable
1. To Interest on 3045.44 4160.73 4609.62 73.06 72.89 71.52
Deposit
2 To Interest on 5.31 1.77 0.23 0.13 0.03 0.003
loan
3. To Rebate 67.41 62.05 105.68 1.62 1.09 1.64

4. To Salary& 397.56 431.65 547.32 9.54 7.56 8.49

Allowances
5 To Direct body 2.28 3.01 3.18 0.05 0.05 0.06
meeting
allowance &
travelling
expenses
6. To Office rent, 85.03 95.04 127.61 2.04 1.66 2.50
taxes,
lighting&
Insurance.
7. To Telephone , 2.99 0.36 13.04 0.07 0.006 0.25
postage, &
telegram
8. To Audit Fee 10.58 22.90 8.62 0.25 0.40 0.17

9. To 37.16 40.13 75.46 0.89 0.70 1.48

Depreciation
10. To stationary, 10.23 10.34 19.19 0.24 0.18 0.37
printing&
advertisement
11. To Other 88.12 116 149.47 2.13 2.03 3.12
Expenses

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12. To Profit 415.98 764.36 315.69 9.98 13.40 6.18

Total 4168.20 5108.34 6445.11 100 100 100

Credit Side

B) By Interest
Received
1. By Interest On 2795 3616.14 3780.07 67.05 63.34
Loan
2. By Interest On 1314.88 2000.77 2611.19 31.54 35.05
Investment
3. By 48.79 41.43 30.25 1.17 0.72
Commission &
Brokage
4. By Other 9.53 23.77 23.60 0.24 0.41
Income
5. By Investment - 26.23 - - 0.45
& Fluctuation
Fund
Total 4168.20 5708.34 6445.11 100 100 100

Balance Sheet
Above Capital & Liabilities shows that,-
1) Share capital in has increased by 1.32 in 2008-2009 & again increased by
0.13%.that is 1.32% in 2008-2009.

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2) In 2006-2007 current Liabilities 1.50% it has decreased by 0.12% that is 1.38% in

2007-2008 & it again increased by a 0.07% that is 1.57% in 2008-2009.
3) Profit & loss has 0.01% in 2006-2007 which increased in 2007-2008 0.17% that is
0.18% & again in 2008-2009 it increased by 0.28% that is 0.29%.

Above properly & Assets shows that,

1) Cash & bank balance in 2006-2007 4.25% which had decreased by 1.5% that is
2.75% in 2007-2008 & also decreased by 1.41% that is 2.84% in 2008-2009.
2) Loans & advanced 57.98% which had decreased by 2.12%. That is 55.86% 2007-
2008 & again decreased by 8.71% that is 49.28% in 2008-2009.

Profit & loss Account-

Above debit shows that.
1) In 2006-2007 Interest payable has 81.09% which had decreased by 6.29% that is
74.80% in 2007-2008 & also decreased by 7.09% that is 74.00% in 2008-2009.
2) Profit has 1.79% in 2006-2007 it increased by 8.19% that is 9.98%& also increased
by 11.6% that is 13.39% in 2008-2009.

Above credit shows that

1) Interest received in 2006-2007 has 95.22% which had increased by 3.38% that is
98.60% & again increased by 3.18% that is 98.40% in 2008-2009.
2) Other income in 2006-2007 has 0.19% which increased by 0.03% that is 0.22% in
2007-2008 & again increased in 2008-2009 by 0.20% that is 0.41%.

3. TREND PERCENTAGE STATEMENT OF BALANCE SHEET

RAJARAMBAPU CO- OPERATIVE BANK L.T.D
Table No.3.7 BASE YEAR 2006-2007

Sr. Particular 2007-08 2008-09 2009-10 Trend

No Percentages

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2008-09 2009-10
A) Liabilities

1. Share Capital 617.36 825.64 1054.08 133.73 170.74

2. General 4245.10 4757.76 4931.75 98.88 116.17

reserve & other
fund
3.Deposit &
other accounts
1.Fixed Deposits 33377.22 41720.18 60415.61 124.99 181
2. Saving 5185.58 6608.06 10854.43 127.43 209.32
Deposits
3. Current 2599.28 2164.17 3391.06 83.26 130.46
Deposits
4.Matured 2058.50 2241.25 2869.68 108.88 139.41
Deposits
4. Bills For 125.75 121.16 108.68 96.35 86.43
Collection
5. Provision for 2640.06 2482.34 2530.46 94.02 95.85
doubt full
interest
6.Interest 54.75 271.44 159.86 495.78 291.98
Payable
7.Current 717.47 980.30 1031.22 136.63 143.77
Liabilities
8.Profit 95.36 182.68 315.71 191.57 331.07
Total 51716.46 62354.97

B) Assets
1.Cash & Bank 1426.31 1776.79 2131.46 124.57 152.24
balance
2.Deposits in 8942.07 15340.00 20510 171.55 229.36
other bank
3.Investment 12456.75 14510.70 13816.28 116.49 110.91

4.Loans

1.Shortterm cash 7553.57 7767.51 9407.20 48.28 39.82

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credit O.D/bill
of exchange etc.
2.Medium from 160,89.64 17238.75 18125.92 228.22 239.96
loans
3.Long term 1669.06 2025.78 2426.55 121.37 145.38
loan
5.Bill for 125.75 121.16 108.68 96.40 86.43
collection

6. Fixed assets 459.34 463.13 742.38 100.82 161.62

7. Interest 2811.40 2778.34 2937.25 98.82 104.48

receivable

8. Account 182.55 332.80 341.64 182.32 187.16

Receivable

Total 47207.65 51716.46 62354.97 109.55 132.08

Liabilities shows that,

1) In 2008-09 share capital has increased up to133.73 % & in 2009-10 it again
increased up to 170.74% as compare to 2007-2008.
2) Current liabilities has increased up to 136.63% in 2008-2009 & again it has
increased in 2009-2010 again it has increased up 143.77
3) Profit is increased in2008-09by 191.57 & it again increased in 2009-2010 up to
331.07%.

Assets

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Above property and assets shows that,

1) Cash and bank balance has increased by124.57% in year 2008-09 and
it again increased by 152.24% in year 2009-10
2) Deposites in other bank has increased by 171.75% in year 2008-09 and it
also increased up to 229.36% in year 2009-10
3) Bills for collection had decreased by 96.40% and it also decreased by
86.43%
4) Fixed assets has increased by 100.82% in year 2008-09 and it again
increased by 161.82% in year 2009-10
5) Account receiable has increased by 182.32% in year 2008-09 and it again
increased by 187.16% in year 2009-10
These all assets are compared to base year 2007-08

TABLE NO- 3.8

TREND PERCENTAGE STATEMENT OF PROFIT & LOSS ACOOUNT
RAJARAMBAPU PATIL CO- OPERATIVE BANK L.T.D
BASE YEAR 2006-2007
( Rs in lacs)
Sr Particular 2007-08 2008-09 2009-10 Trend Percentage
No
2008-09 2009-10
Debit Side

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Kolhapur

A) To Interest
Payable
1. To Interest on 4160.73 4609.61 136.62 151.36
3045.43
Deposit
2 To Interest on 5.31 1.77 0.23 33.40 4.33
loan
3. To Rebate 67.40 62.05 105.67 92.06 156.78
4. To Salary& 397.56 431.65 547.31 108.57 137.67
Allowances
5 To Direct body 2.28 3.01 3.17 132.60 139.65
meeting
allowance &
travelling
expenses
6. To Office rent, 85.03 95.04 127.60 111.76 150.06
taxes, lighting&
Insurance.
7. To Telephone , 2.99 0.36 13.04 12.04 436.12
postage, &
telegram
8. To Audit Fee 10.68 22.90 8.61 214.53 80.69
9. To Depreciation 37.16 40.12 75.46 108 203.12
10. To stationary, 10.24 10.34 19.19 101.07 187.58
printing&
advertisement
11. To Other 88.12 116.00 159.46 131.65 180.98
Expenses
12. To Profit 415.98 764.36 315.69 183.75 75.89
Total 4168.2 5708.33 5985.04

Credit Side
B) By Interest
Received
1. By Interest On 2795.00 3616.14 3780.07 129.38 135.24
Loan
2. By Interest On 1314.87 2000.77 2611.18 152.16 198.59
Investment
3. By Commission 48.79 41.43 30.25 84.93 62.01
& Brokage
4. By Other Income 9.53 23.77 23.59 249.68 247.80

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5. By Investment & 26.23 -

Fluctuation Fund
-
Total 3733.4 4168.2 5708.33

PROFIT & LOSS ACCOUNT:-

- Debit side shows that:-
1) Salary & allowances are increased in 2008-2009 up to 108.57% again increased
in 2009-2010up to 137.67%as compared to 2007-2008.
2) Other expenses increased up to 131.65% in 2008-2009 & again it increased up to
180.58 % in 2009-2010as compared to 2007-2008.

-Credit Side-
1) Commission has decreased up to 84.93% in 2008-2009 & decreased 62.01% in
2009-2010 as compared to 2007-2008.
2) Other income increased 249.68% & again increased 247.80% in n2009-2010 as
compared to 2007-2008.

Chapter No -V

Finding

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Finding-
1) The share capital of Rajarambapu Co-operative bank is better because capital is
increased each year & growth of the capital is very high, In 2007-2008 capital was
617.35 lacs but in 2008-2009 it increased & it researched 825.64 lacs & 2009-2010 it
reaches 1054.08 lacs.
2) The financial position of the organization is better because profit is increased each
year & growth of the profit is very high. In 2007-2008 profit was 65.36 lacs then in
2008-2009 it increased & it researched 182.68 lacs & 2009-20010 it reaches
315.71lacs.
3) In case of bills for collection decreased . In 2007-2008 it was 125.74 lacs in 2008-
2009 it decreased but 2009-2010 that is 108.68 lacs.
4) Current liability values are not stable, that are change in every year.

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Chapter No –VI
Suggestion & Conclusion

SUGGESTION
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6.1 Suggestion-
1) Bank should adopt new & advanced technical instrument in bank for the consumer
to easily use banking process, like, ATM, & credit card etc.
2) Loans are increased every year because of this provision are increased hence it is
help to increased the profit.

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6.2 Conclusion –
Rajarambapu Co-operative Bank Ltd. Peth is the leading financial bank in sangli
district. From the detail study of financial statement analysis to with respect of
Rajarambapu Co-operative Bank LTD Peth the researcher conclude that, the
financial position of the bank is best, As the profit portion of the bank is increasing
tremendously the bank is easily manage is increasing development expenses .
If we make comparison between of last three year we find that is also continues
increase in so it is better for development of the organization.

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BIBLIOGRAPHY 57
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Bibliography-

1) Financial Management- shashi. K. Gupta. &

P. K. Sharma.
2) Management Accounting- M .G. Pathkar.
3) Financial Accounting- M.V. Kulkarni.
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4) Organization Booklets & Annual Report of the bank.

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