Download - Bank Balance Sheet Final
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BANK BALANCE SHEET
V/S
COMPANY BALANCE SHEET
Presented by:
Manish Vijay Pandhi
Roll No:34
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Bank balance sheetLIABILITIES ASSETS
Deposits
- Demand Deposits
- Savings Deposits
- Term Deposits
Cash
- Cash in hand
- Balances with RBI
Borrowings Balance with Bank, Money at call and Short
Notice
Capital Investments
- Government securities
- Shares
- Debentures and Bonds
- Subsidiaries and Joint Ventures
- Other investments
Reserves and Surplus
- Statutory Reserves
- Share premium Reserves
- Capital Reserves- Revenue Reserves
- Investment fluctuation Reserves
Loans and Advances
Other Liabilities
- Bills payable
- Interoffice adjustments
- Interest accrued
- Provisions
Fixed Assets
Gross Block
Less: Depreciation
Net Block
Other Assets
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Company balance sheet
LIABILITIES ASSETS
Shareholders funds- Share Capital
- Reserves and Surplus
Capital Reserves
Bond/ Debenture redemption
Reserves
Share premium Reserves
Fixed AssetsGross Block
Less: Depreciation
Net Block
Capital Work In Progress
Loan funds
- Secured loans
- Unsecured loans
Investments
Current Assets
- Inventories
- Debtors
- Cash and Bank Balance- Loans and Advances
Less: Current Liabilities
- Creditors
- Provisions
Intangible Assets
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GENERAL DIFFERENCES
BANK BALANCE SHEET COMPANY BALANCE SHEET
- It is prepared in the format specified
by the Banking Regulation Act, 1949.
- It is prepared in the format specified
by the Companies Act, 1956.
- In a Bank balance sheet, Assets and
Liabilities are arranged in order of
liquidity.
- In a Company balance sheet, Assets
and Liabilities are arranged in order
of their duration.
- Sources of fund are primarily short
term in nature, payable on demand
with short term maturities.
- Sources of fund are generally long
term in nature.
- Under assets, we will mostly notice
loans and investments. Under
liabilities, we will see deposits and
borrowings.
- Under assets, we will notice
inventory, accounts receivable. Under
liabilities, we will see accounts
payable.
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BANK BALANCE SHEET COMPANY BALANCE SHEET
- Paid up capital is held by the Central
Government and the Public.
- Paid up capital is held by the Shareholders
of the Company.
- As per RBI guidelines, the entry capital
requirement for new private sector bank
is Rs. 200 crores, with a commitment to
increase to Rs. 300 crores within 3 years.
- The minimum paid up capital for
Private Limited Company: Rs.1,00,000/-
Public Limited Company: Rs.5,00,000/-
This limit is not applicable to company
having licence under section 25.
Capital
reserves
BANK BALANCE SHEET COMPANY BALANCE SHEET
- Every year, banks transfer 25% of theirprofit to the Statutory Reserve.
- Statutory reserves arent held byCompanies (except Insurance
Companies).
- As per RBI guidelines, banks should build
an Investment Fluctuation Reserve of a
minimum of 5 percent of the investment
portfolio.
- As per the Companies Act, a Company
should also maintain an Investment
Fluctuation Reserve, but there is no limit
specified.
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CashBANK BALANCE SHEET COMPANY BALANCE SHEET
- To meet deposit withdrawals, day-
to-day expenses and credit drawal
demands.
- It forms a part of current asset to
meet the companys short term
liabilities.
- It includes cash in hand, foreign
currency notes, cash balances at
overseas branches, balances with the
RBI.
- It includes cash in hand and bank
balances (current accounts and
deposit accounts).
FIXED ASSETS
BANK BALANCE SHEET COMPANY BALANCE SHEET
- Fixed Assets are Low as compared to
that of any Company.
- Fixed Assets of a Company are High.
- Less Depreciation. - High Depreciation.
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Loans and advances
BANK BALANCE SHEET COMPANY BALANCE SHEET
- It is most important for banks andimpacts their profitability to a large
extent.
- It is subordinate for companies andincludes advances recoverable in cash
or kind and deposits.
- Maturities range from few days to
15-30 years.
- It forms a part of Current Assets.
- It carries a high level of default risk. - It doesnt carry a high level of
default risk.
Balance sheet ratios
BANK BALANCE SHEET COMPANY BALANCE SHEET
- Operating leverage is low. - Operating leverage is high.
- Financial leverage is very high. - Financial leverage is low.
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Liabilities in a bank balance sheetDeposits:
Primary source of borrowed funds for a bank predominantly raised from the public.
Classification on the basis of purpose and maturity:
1. Demand Deposits - Balances in Current accounts.
No interest will be paid by the bank on these balances.
2. Savings Deposits - Savings account for the purpose of household savings.
Payable on demand and interest is paid on these deposits.
3. Term Deposits - Deposits with maturity period ranging from 15 days to 10 years.
Form of fixed deposits, recurring deposits, reinvestment deposits etc.
Borrowings:
Borrowings are categorised into:
1. Borrowings in India and
2. Borrowings outside India.
Borrowings from RBI, money market including call money market etc.
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Liabilities in a Company balance sheet
Loan Funds :
Long term debt taken by the company.
Loans are classified as:1. Secured loans - These loans are secured against a collateral
given by the borrower.
2. Unsecured loans - These loans are not secured against anycollateral.
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Examples of Balance sheet
Particulars As at 31-03-2010 (Rs.)
I. CAPITAL AND LIABILITIES
Capital 5259146
Reserves & Surplus 137040792
Deposits 2297619439
Borrowings 223998955
Other Liabilities and Provisions 85746253
TOTAL 2749664585
II. ASSETS
Cash and balances with RBI 156026240
Balances with banks and money at call and short notice 156275098
Investments 670801795Advances 1684907098
Fixed assets 23518088
Other assets 58136266
TOTAL 2749664585
Contingent liabilities 1350987825
Bills for collection 118101637
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Particulars As At 31.03.3011
SOURCES OF FUNDS
Shareholders' Funds
Share Capital 82527780
Reserves & Surplus 483424552
565952332
Loan Funds
Secured Loans 184455345
Unsecured Loans 583000
185038345
Deferred Tax Liabilities 11546422
Total Liabilities 762537099
APPLICATION OF FUNDS
Fixed Assets
Gross Block 385394784
Less: Depreciation 52482314
Net Block 332912470
Capital WIP 2318418
335230888
Investments 50000
Current Assets, Loans & Advances
Inventories 81450252
Sundry Debtors 524587816
Cash & Bank Balances 122211147
Loans & Advances 40107100768356315
Less: Current Liabilities & Provisions
Current Liabilities 299470670
Provisions 41653181
341123851
Net Current Assets 427232464
Miscellaneous Expenditure 23747
Total Assets 762537099
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