APROJECT REPORT

On

FINANCIAL ANALYSIS of NAGPURNAGRIK SAHAKARI BANK LTD.

NAGPUR

Submitted in partial fulfillment in the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Of

Rastrasant Tukdoji Maharaj

Nagpur University, Nagpur

Submitted By

Miss. Monali K. Taklikar

Guided By

Prof.

Director Co-ordinator

Dr.

G.H. Raisoni Institute Of Engineering & Technology For WomenNagpur

2010 - 2011

DECLARATION

I Hereby declare that the project entitled "Financial Analysis of Nagpur

Nagrik Sahakari Bank Nagpur" is the record of the original work done by

me and no part of it has been submitted earlier by me to any institute for the

award of any degree or diploma.

The source of material and data used in this study have been duly

acknowledged.

Miss M. K. Taklikar

ACKOWLEDGEMENT

I acknowledge with sincere gratitude to all those who helped me to

make this project a success.

I wish them-to express my special thanks to Mr. N. Nagratnam and

all the management of Nagpur Nagrik Sahakari Bank for their support

throughout the project.

I am also thankful to Prof. my project guide who has been a

guiding source an inspiration without her help, this project work could not

have been possible.

I am also grateful to our Director Mr. & co-ordinator Prof.. for

their full support of co-operation.

Miss Monali Taklikar

CONTENTS

Chapter No. CHAPTERS

1

Company Profile

Introduction

History

Organization Structure

2 Objectives of Study

3 Hypothesis

4 Research Methodology

5

Financial Analysis Introduction to financial

analysis

Meaning

Financial Statement

Type of Financial Statement

Types of Financial Analysis

Steps involved in statement analysis

Classification

Tools of Financial Analysis

6

Data Analysis

Comparative Analysis

Common size Financial Analysis

Trend Analysis

Ratio Analysis

7 Conclusions

8 Suggestion

9 Limitation

10 Bibliography

11 Annexure

Chapter -I

COMPANY PROFILE

COMPANY PROFILE

INTRODUCTION –

Information regarding the Bank :-

Name of the Bank - Nagpur Nagrik Sahakari Bank Ltd.

Nagpur

Head Office Address - 79, Dr. Ambedkar Squar,

Central Avenue, Nagpur-8

Date & Registration No - M.S.C.S./C.R./126/2001

Date: 21-03-2001

Date & No. of R.B.I. - UBD/MM/959-P

License - Date 7-01-1988

Area of work - Maharashtra , Madhyapradesh &

Chattisgadh (Raipur & Durg)

No. of Branches - 34 including Head Office

Membership

Regular - 60521

Nominal - 10513

Members of amalgamated - 2817

Paid up share capital - Rs. 1493.46 Lacks

Total Reserve - Rs 5559.41 Lacks

Advances - Rs.37096.53Lakhs

Deposits

Saving - Rs. 18747.29 Lacks

Current - Rs.5601.61 Lacks

Fixed - Rs. 42017.82 Lacks

Loan

Unsecured - Rs. 1056.49 Lacks

Secured - Rs. 36040.04 Lacks

Total % of Primary Section - 57.37%

Total % of weaker section - 9.05%

Borrowing - 43.096 Lacks

Total % of Non-Performi8ng Assets (Gross) 11.38%

Total % of Non-Performi8ng Assets (Net) 2.46%

Investment (Other) - Rs 19966.50 Lacks

Overdue - Rs.1535.18 Lacks

Audit Classification - “1” Grade

(2009-2010)

Profit –

Net profit for the year - Rs. 234.12 Lacks

Working Capital - Rs. 75294.63 Lacks

Staff 493

Head Staff - 158

Other Staff - 335 .

History

Nagpur Nagrik Sahakari Bank is established under M.S. Co-operative

. Act 1960 dated 20/6/1962 & registration no- M.S.C.S./C.R./126/2001

dated 21-03-2001 as Reserve bank license no. UBD/MM/959 – P

dated 7th January 1988 to improve the financial strength of general people

of Nagpur Dist.

In the beginning shares were collected from the people.

Nagpur Nagrik Sahakari Bank developed rapidly as compare to other

Banks in Nagpur Dist. Because of lot efforts taken by founder members as

well as Co-operation of people.

Therefore it is popular bank as UCB is the bank to people, for the

people & by the people.

Now a days Bank has developed their work also. Now it is not

restricted to only Nagpur dist. But it also developed in Madhyapradesh.

Now a days 4 branches of Nagpur Nagrik Sahakari Bank are working in

Madhyapradesh. Bank has 31 branches & Head Office. It is the superfast

growing co-operative bank.

Mr. Lahu Kindarle is the staff members of bank got award of Dr.

Babasaheb Ambedkar Pheloship Award by hand of president. Nagpur

Nagrik Sahakari Bank started Core Banking system today bank is

developed fully in paperless bank. The own data centre of bank is working

in Head office of bank, where all branches are connected online .

It is developed bank in co-operative sector.

Reserve:-

On comparison of 31st march 2009 the reserve of 31st march 2010 is

5896.39 lacks.

Economic wealth of bank is depends on reserve . maximum limit of

loan is decided by the new plan of reserve bank of India and minimum

C.R.A.R. (capital to risk asset ratio) is up to 9%

C.R.A.R. of Nagpur Nagrik Sahakari Bank is 14.91%

This shows that bank is on progressive way.

Deposit:-

Deposit of bank increases regularly deposit of last year i.e. 2009

was 53845.80 lacks and in 2010 it increases upto 58192.80 lacks i.e.

deposit increases by 4346.89 lacks .it is possible by the help and faith of

bank members and depositors.

Nagpur Nagrik Sahakary Bank give insurance facility on all deposit up

to 1 lacks.

Loan :-

Bank provide loan facility on minimum rate of interest . bank decides

rate of interest on loan which is suitable for all classes people and

approved by R.B.I.

In year 2009 total loan was 29397.48 lacks and after receiving

balance amount of loan, total loan in year 2010 is 32894.28 lacks.

In history, this year bank provides loan on minimum rate of interest

than all previous years.

Bank provides loan facility on 2% rate of interest for purchase of

solar system.

Working Capital :-

Working capital of the bank is Rs. 75294.63 lacks in the year ended 31st

march 2010.

Profit :-

Profit increases every year. Year 2009-2010 total profit is Rs.

221.43 lacks. On comparison last year profit is increased by Rs.

48.50.

ORGANISATION STRUCTURE

Directors

Chief Executive Officer

Asst. Chief Executive Officer

Admn. Deptt. A/c Deptt. Loan Deptt. Audit Deptt.

Officer Officer Loan Officer Officer

Clerk Accountant Junior officer Clerk

Typist Clerk Inspector Peon

Peon Peon Clerk

Peon

Chapter-IIOBJECTIVES

OBJECTIVES

The soundness and intrinsic worth of a Bank is known only by

financial analysis. The financial & operational efficiency and profitability of

the bank also known by financial analysis. These factors can be examined

by study of a financial analysis. It enables us to have a better

understanding of Bank. An investor as well as shareholder need to know

the performance of the company.

Objectives of study are -

To study the financial performance of bank

To observe the trends analysis for interpretation of financial standard.

To make compares of financial statement

For meaningful interpretation.

To judge the credit worthiness of the Bank.

Chapter - III

Hypothesis

Hypothesis

Hypothesis is experimental assumption made in order to draw out &

test its logical consequences. Hypothesis provides the focal point of

research. They also effect the manner in which tests musts be conducted

in the analysis of data & indirectly the quality of data which is required for

the analysis. In most types of research, the development of working

hypothesis plays an important role. Hypothesis should be very specific &

limited to the piece of research in hand because it has to be tested. The

role of Hypothesis to guide the researcher. It also indicated the type of

data required & the type of methods of data analysis to be used.

After analysis the data as stated above, the researcher is in a

position to test the Hypothesis.

Hypothesis testing will result in either excepting the Hypothesis or

rejecting it.

1) Bank has proper sources of earning.

2) Bank has sufficient capital fund for cash transactions.

3) Ratios goes to understanding the financial position of bank.

Chapter – IV

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Research is the application of scientific method to add the present

pool of knowledge. Financial research is a systematic design, collection and

analysis of data and finding relevance to specific financial aspect of the

Bank. Data are facts, figures & other relevant materials, for study &

analysis.

Data is primarily of two kinds:-

1) Primary dada

2) Secondary data

1) Primary data: -

Data that is collected for the specific purpose at hand is called

as primary data.

Primary data collection methods can also be classified as:

I. Observation

II. Interviewing

III. Experimentation

IV. Simulation

V. Projective technique

2) Secondary data :-

Any data that is available prior to the commencement of the research

project is secondary data, and there for secondary data is also called as

historical data. Secondary data collection saves valuable time, effort and

money.

Sources of secondary data :

Sources of secondary data can be classified as –

I. published sources

II. unpublished sources

For my project Financial Analysis, I used secondary data of Nagpur

Nagrik Sahakari Bank.

The data is collected through financial statement like:-

a) Annual Report

b) Balance sheet

c) Profit & Loss

Along with the above sources the interaction with official of the Bank

like Manager of account section also reveled some useful information and

guidance required for project report.

The calculation were done for three consecutive years viz.

2007-2008, 2008-2009, 2009-2010.

Financial analysis itself is technique to assess the financial

soundness of the bank.

Method like comparison, ratio analysis, trend analysis, fund flow

analysis also help to study the financial analysis & interpretation of the bank

Chapter – V

FINANCIAL ANALYSIS

FINANCIAL ANALYSIS

The basis for financial analysis planning and decision making is

financial information. A business firm prepares its final account viz.. balance

sheet} profit and loss account which provides useful financial information for

the purpose of decision making. Financial information is needed to predict,

compare and evaluate the firm's earning ability. The former statement viz.

Profit and loss account shows the operating activities of the concern and

later Balance sheet depicts the balance value of the acquired asset and of

liability at a particular point of time.

However these statements do not disclose all of the necessary and

relevant information. For the purpose of obtaining the material and relevant

information necessary for ascertaining the financial strength and weakness

of an enterprise It is necessary to analysis the data depicted in the financial

statement.

Meaning:-

The financial statement is an organization collection data according to

logical and consistent accounting procedure. Its purpose is to convey an

understanding of some financial aspect of business firm. It may show

position at a moment of time as in the case of balance sheet or may reveal

a series of activities over a given period of time as in the case of an Income

statement.

Thus financial statement generally refers to two basic statements

1. Income statement and

2. Balance statement

of course a business may also prepare

3. Statement of retained earning and

4. Statement of changes in financial position addition to the above two

Statement.

1) Income Statement:- (Profit and loss account ) :-

The income statement of generally considered to be the most useful

of all financial statement. It explains what was happened to business as a

result of operation between two balance sheet dates. For this purpose it

matches the revenues and cost incurred in the process of earning revenues

and shows the net profit earned or loss suffered during a particular period.

2) Balance Sheet :-

It is a statement a financial position of a business at a specified

moment of time. It represent all asset owned by the business at a particular

moment of time and claim of the owners and outsiders against those asset

at that time It is in a way snapshot of the financial condition of the business

at that time.

3) Statement of retained earning :

The term retained earning means the accumulated excess of earning

over losses and dividends. The balance shown by income statement is

transferred the balance sheet through this statement. After making

necessary appropriation it is thus a connecting link between Balance sheet

and income statement. It is fundamentally a display of things that have

caused the beginning of the period retained earning balance to be changed

in to the one shown in the end of the period of balance sheet.

4) Statement of changes in financial position :-

The Balance sheet shows the financial condition of the business at a

particular moment of time while the income statement disclose the result It

of operations of business over a period of time. However for better

understanding of the affairs of the business it is essential to identify the

movement of working capital of cash in and out of the business. This

information is available in the statement of changes in financial position of

the business. The statement may emphasize any of the following aspects

relating to change in financial position of the business.

1) Change in the firm's working capital

2) Change in the firm's cash position

3) Changes in the firm's total financial position.

Nature of Financial statement:-

According to the American institute of certified public accountant,

financial statement reflect a combination of recorded facts, accounting

conventions and personal judgment, and the judgment and the convention

applied affect them materially. This implied that data exhibited in the

financial statement are affected by recorded fact, accounting conventions

and personal judgment.

1) Recorded facts:-

The term recorded facts means facts which have been recorded in

the accounting books which have not been recorded in the financial books

are not depicted in financial statements. . However material, for example

fixed asset are shown at cost irrespective of their market or replacement

price since such price is not recorded in the books.

2) Accounting convention:-

Imply certain fundamental accounting principle which have been

satisfied by long usage, for example on account of the conventions of

conservatism provision is made for expected losses but expected profit are

ignored this means that the real financial position of the business may be

much better than what has been shown by financial statement.

3) Personal Judgment :

Personal judgment has also an important bearing on the financial

statement for example, the choice of selecting methods of depreciation lies

on the account similarly the mode of amortization of fictitious asset also

depends on the personal judgment or the accounting.

4) Ignore substance:-

Financial statements in India are prepared and presented in the form

as prescribed by law. As a result many substantial facts go unrecorded for

example the assets taken by an organization on financial lease basis are

not shown in the balance sheet through they are used for revenue

generation.

5) Over generalization:-

Financial statement present data in a generalized form and not as per

the requirement of specific users viz. share holder, employees,

government potential investor, lenders etc Hence they can not meet the

Specific data requirement of the users. They are only general purpose

statement.

Type of Financial Analysis

Financial analysis can be classified in two different categories depend

upon

i) Material used and

ii) The the modus operandi or analysis.

1) On the basis of Material used :-

According to this basis financial analysis can be of two types:

i) External analysis:-

This analysis is done by those who are outsiders for the business.

The term outsiders include investors, credit agencies government agencies

and other creditors who have no access to the internal records of the Bank.

These persons mainly depend upon the published financial statement.

Their analysis serves only a limited purpose.

ii) Internal analysis:-

This analysis is done by persons who have accesses to the books of

account and other information related to the business. Such as analysis can

therefore be done by executive and employees of the organization or by

officers appointed for this purpose by the government or the court under

power vested in them. The analysis is done depending upon the objectives

to be achieved through this analysis.

2) On the basis of modus operandi:-

According to their financial analysis can also be of two types

i) Horizontal analysis:-

In case of this type of analysis financial statement for a number of

years are reviewed or analyzed The current year figures are compared with

standard or base year. The analysis statement usually contents figures for

two or more years and the changes are shown regarding each item from

the base year usually info the form of percentage such an analysis gives

the management considerable insight into levels and areas of strength and

weakness since this type of analysis is based on the data from year to year

rather than on one date it is also termed as "Dynamic Analysis"

ii) Vertical analysis:-

In case of this type of analysis a study is made of the quantitative

relationship of the various items in the financial statements on a particular

date. For example, the ratio of different items or cost for a particular period

may be calculated with sales for that period.

Steps involved in financial statement analysis.

The analysis or the financial statement requires

1. Methodical classification of the data given in the financial statement

2. Comparison or the various inter-connected figures with each other by

different tools or financial analysis

Methodical classification:-

In order to have a meaningful analysis it is necessary that figures

should be arranged properly. Usually instead of the two-cotton (T-form)

statement as ordinarily prepared. The statement is prepared in single

(vertical) column form which should throw up significant figures by adding

or subtracting. This also facilities showing the figures of a number of a firm

or number of year side by side for compression purpose.

Tools or Financial analysis:-

A financial analysis can adopt the following tools for analysis of the

financial statement.

i) Comparative financial statement:-

Comparative financial statements are those statement which have

been designed in a way so as to provide time perspective to the

consideration of various element of financial position embodied in such

statements. I n these statement, figures for two or more period are placed

made by side to facilitate compression.

Both income statement and Balance sheet can be prepared in the form of

comparative financial statement.

Comparative income statement :-

The income statement discloses net profit or net loss on account of

operations. A comparative income statement will show the absolute figures

for two or more periods. The absolute change from one period to another

and if desired change in terms of percentage since the figure for two or

more period are shown by side by side. The reader can quickly ascertain

whether sales are increased or decreased whether cost of sales has

increased or decreased etc. Thus only a reading of data included the

comparative income statement will be helpful in deriving the meaningful

conclusion.

Comparative balance sheet:-

Comparative balance sheet as on two or more different date can be

used for comparing assets and liability and finding any increased or

decreased in those items. Thus while in single balance sheet the emphasis

is on present position. It is on change in the comparative balance sheet.

Such a balance sheet is very useful in studying the trend in enterprise.

Comparative final statement has been designed to provide time perspective

to the consideration of various elements or financial position imbedded in

such statement. In this statement figures for two or more period are placed

side by side for comparison. It is very useful in involving trend in enterprises

Common size Financial Statement are those in which figures reported are

converted in % to some common base in the balance sheet total asset or

liability.

Trend Analysis :-

Trend % immensely helpful in making comparative study of financial

statement for several year. The method of calculating trend % involves the

calculation of % relationship that each item bear to the same item in the

base year. Any year can be taken as base year it is usually the aerialist

year.

The method of trend % is useful analytical device for management

since by substitution of .percentage of large amount, The gravity and

reliability are achieved. They are usually calculated only for major problem.

Chapter – VI

DATA ANALYSIS

Balance Sheet

Liability Amt(In Cr)

Amt(In Cr)

Amt(In Cr)

Asset Amt(In Cr)

Amt(In Cr)

Amt(In Cr)

2008 2009 2010 2008 2009 2010

Authorized capital@ Rs. 50/- each

2020 20

Cash73.606 94.133 84.010

Subscribed capital@ Rs. 50/- each 10.425

12.32 14.935 Balances with other Bank 38.105 34.866 53.885

Paid up capital@ Rs. 50/- each

10.425 12.32 14.935Money at call & Short Notice - - -

Reserve fund & other Reserve 51.159 58.964 55.594 Investments 199.665 196.832 223.942

Deposits 538.458 581.938 663.667 Advances 293.975 328.943 370.965

Borrowings 0.431 0.015 - Interest Receivable 20.249 18.205 16.814

Bills for collection being bills receivable

1.807 1.546 1.501Bills Receivable being bills for Collection

1.807 1.546 1.501

Branches Adjustment 0.629 0.331 - Branch Adjustment - - 0.323

Overdue Interest Reserve 15.352 14.025 12.502

Goodwill (on Amalgamation)

1.740 1.244 0.822

Interest Accrued & payable6.127 1.455 2.044

Land & Building3.634 3.603 5.142

Other Liabilities 16.254 16.577 15.188 Furniture & Fixtures 2.537 3.669 4.682

Profit & Loss 1.729 2.214 2.341 Computes 2.079 1.349 0.537

Vehicle 0.317 0.378 0.322

other Assets 4.658 2.949 2.668642.371 689.376 767.771 642.371 689.376 767.771

Profit & loss Account

Expenditure Amt(In Cr)

Amt(In Cr)

Amt(In Cr)

Income Amt(In Cr)

Amt(In Cr)

Amt(In Cr)

2008 2009 2010 2008 2009 2010Interest 29.657 37.878 40.483 Interest & Discount 45.734 54.005 57.234Salaries Allowances & Provident Fund

10.174 16.015 13.841 Dividend 0.154 1.363 1.185

Directors & Local Committee Members fees & Allowances

0.048 0.051 0.046Commission & Exchange

0.743 0.669 0.750

Rent Taxes, Insurance, lighting etc

1.524 1.875 2.326Profit on Sale of Investment

- 18.024 0.343

Law Charge 0.085 0.181 0.320 Other Receipts 5.078 2.901 7.168Postage, Telegrams & telephone charges

0.222 0.23 0.427

Auditors Fees 0.135 0.165 0.139Depreciation on & Repairs in property

2.157 2.602 2.795

Stationary, printing Advertisements

0.524 0.417 0.456

Amortization & Depreciation on Govt. Securities

2.828 5.087 2.788

Other Expenditure 1.089 1.135 1.337Income Tax 0.022 1.226 (1.278)Transfer to Investment Fluctuation Reserve

- - -

Provisions & Contingencies

1.521 0.438 0.191

Balance of Profit 1.729 2.214 2.34151.709 76.961 66.681 51.709 76.961 66.681

I Comparative Analysis Of Balance Sheet2009 2010 Absolute

change%

Asset

Cash 94.133 84.010 10.123 10.75

Deposit in other Bank 34.866 53.885 19.019 54.55

Money at call & short notice - - - -

Investment 196.832 223.942 27.11 13.77

Advances 328.943 370.965 42.02 12.77

Interest receivable 18.205 16.814 -1.391 -0.08

Bills receivable being bills for collection 1.546 1.501 -0.045 -2.91

Branch Adjustment - 0.323 0.323 32.3

Land & Building 3.603 5.142 1.539 42.71

Good will 1.244 0.822 -0.422 -33.92

Furniture & fixture 3.669 4.682 1.013 27.61

Computers 1.349 0.537 -0.841 -62.34

Vehicle 0.378 0.322 -0.056 -14.81

Other Asset 2.949 2.668 -0.281 -9.48

Liability

Issue & paid up capital 12.32 14.935 2.615 21.23

Reserve & Other Fund 58.964 55.594 -3.37 -5.72

Deposit 581.938 663.667 81.729 14.04

Borrowing 0.015 - -0.015 -1.5

Bills for collection being bills receivable 1.546 1.501 -0.045 -2.91

Branch adjustment 0.331 - -0.331 -3.31

Outstanding interest payable 1.455 2.044 0.589 40.48

Other liabilities 16.577 15.188 -1.389 -8.38

Overdue interest reserve 14.025 12.502 -1.523 -1086

Profit & loss account 2.214 2.341 0.127 5.74

Interpretation :- From the comparative analysis of balance sheet

statement it is observed that cash increases from 2009 to 2010 by absolute

in value 10.123 Cr. At an y percentage it is 10.75% profit also increases

from 2009 to 2010 by absolute in value Rs. 0.127 Cr. In percentage it is

5.74%. Bills receivable being bills for collection reduce from 2009 to 2010

by absolute in value 0.045 Cr. In percentage it is reduce 2.91%. Other

asset decreases from 2009 to 2010. Similarly all the items of Balance sheet

can be judge & can be found out absolute change in it as well as

percentage change.

II) Comparative Analysis of Profit and Loss Account

2009

Amt. in cr.

2010

Amt. in cr.

Absolute

change

%

Income

Interest & Discount 54.005 57.234 3.229 5.98

Dividend 1.363 1.185 -0.178 -13.06

Commission & Exchange 0.669 0.750 0.081 12.11

Profit on Sale of Investment 18.024 0.343 -17.681 -98.10

Other Receipts 2.901 7.168 4.267 147.09

Total Income 76.962 66.68 -10.282 54.02

Expenses

Interest 37.878 40.483 2.605 6.88

Salaries, Allowances & Provident Fund 16.015 13.841 -2.174 -13.57

Director’s & Local Committee

members fees and allowances0.051 0.046

-0.005 -9.80

Rent, Taxes, insurance, lighting etc. 1.875 2.326 0.451 24.05

Law charges 0.181 0.320 0.139 76.80

Postage Telegrams & Telephone charges 0.23 0.427 0.197 85.65

Depreciation & repairs in Property 2.602 2.795 0.193 7.42

Stationary, Printing & Advertisement 0.417 0.456 0.039 9.35

Auditors fees 0.165 0.139 -0.026 -15.76

Amortization & Depreciation on Govt.

securities 5.087 2.788

-2.299 -45.19

Other Expenses 1.135 1.337 0.202 17.79

Provision & Contingencies. 0.438 0.191 -0.247 -56.39

Income Tax 1.226 (1.278) -2.504 -204.24

Transfer to Investment Fluctuation

Reserve

- - - -

Net Profit 2.214 2.341 0.127 5.74

Interpretation:-

From Balance sheet it is concludes that absolute that absolute

increased in Net profit is 0.127 cr. And in % in is increase by 5.74% In the year

2010 this is a Profit & Profit increased in next year.

I) Common size Financial Statement of Balance Sheet

2008 2009 2010

Asset

Cash 11.92% 8.56% 11.48%

Balance with other Bank 5.16% 5.37% 5.94%

Money at call & short notice - - -

Investment 29.78% 27.80% 31.15%

Advances 48.70% 49.73% 45.86%

Interest receivable 2.6% 2.69% 3.16%

Bills receivable being bills for collection 0.33% 0.52% 1.81%

Goodwill 0.32% 0.29% 0.27%

Land & Building 0.34% 0.37% 0.57%

Furniture & fixture 0.35% 0.42% 0.40%

Computers 0.08% 0.12% 0.32%

Vehicle 0.07% 0.06% 0.05%

Other asset 0.80% 1.27% 0.73%

100% 100% 100%

Liability

Issue & Paid up capital 1.60% 1.69% 1.63%

Reserve & Other Fund 9.39% 9.11% 7.98%

Deposits 83.58% 82.74% 83.99%

Borrowings 0.02% 0.01% 0.07%

Bills for collection being bills receivable 0.33% 0.52% 0.28%

Branch adjustment 0.14% 0.17% 0.10%

Outstanding interest payable 2.13% 0.07% 0.96%

Overdue interest reserve 2.15% 0.07% 2.39%

Other liabilities 2.33% 3.05% 2.54%

Profit & loss account 0.32% 3.32% 0.27%

100% 100% 100%

Interpretation :- The above statement shows that though in absolute

terms, figures showing difference we may get percentage approximately

same.

In this analysis cash decreases from 2008 to 2009 by

(11.92%-8.56%) 3.36% & cash increases from 2009 to 2010 by (11.48%-

8.56%) 2.92%.

Investment also decrease also decreases 2008 to 2009 by 1.38% &

increases from 2009 to 2010 by 3.35% similarly all items are compared with

base of 100 as total assets.

In liability paid up capital increases from 2008 to 2009 by 0.09% &

decreases from 2009 to 2010 by 006%.

Reserve Fund decreases from 2008 to 2010 by 1.13%. as other

liability also less as compared to previous year. Thus all the items of Asset

& Liability cpmpare with the base of hundred of total asset & total liability.

II) Common size Financial Statement of Profit & Loss Account

2008 2009 2010

Income

Interest & Discount 82.83% 90.86% 88.45%

Dividend 0.001% - 0.30%

Commission & Exchange 1.92% 1.75% 1.44%

Other Receipts 15.50% 7.38% 9.82%

100% 100% 100%

Expenses

Interest 51.35% 54.27% 57.75%

Salaries, Allowances & Provident Fund 20.52% 22.90% 19.68%

Director’s & Local Committee

members fees in allowances

0.09 0.10 0.09

Rent, Taxes, insurance, lighting etc. 2.78% 3.33% 2.95%

Law charges 0.31% 0.21% 0.16%

Postage Telegrams & Telephone

charges

0.52% 0.46% 0.43%

Depreciation & repairs in Property 1.73% 2.56% 4.17%

Stationary, Printing & Advertisement 0.77% 0.85% 1.01%

Auditors fees 0.30% 0.27% 0.26%

Amortization & Depreciation on Govt.

securities

2.71% 7.15% 5.47%

Other Expenses 2.16% 2.17% 2.11%

Provision & Contingencies. 13.14% 1.20% 2.94%

Income Tax 0.04% 0.69% 0.04%

Transfer to Investment Fluctuation

Reserve

- - -

Balance of Profit 3.57% 3.83% 3.34%

100% 100% 100%

Interpretation :- In common size financial statement of profit and loss

account all the expenses of 2008, 2009 and 2010 are calculated in the

base of hundred. In above statement it shows previous expenses to the

base of hundred as a total expenses. Like interest in year 2008 it is

51.35% but in 2009 it is 54.27 and 2010 it is 57.75% Law charges reduce

from 2008 to 2009 by 0.1% & 2009 to 2010 by 0.05%

In Income side interest increase from 2008 to 2009 by 8.03% &

reduce from 2009 to 2010 by 2.41%

I) Trend Analysis Balance Sheet

Trend Base on 2008

Asset 2008 2009 2010 2008 2009 2010

Cash 73.606 94.133 84.010 100 74.24 122.92

Deposits with other

Bank 38.105 34.866 53.885

100 107.76 146.87

Money at call &

short notice

- - - 100 - -

Investment 199.665

196.832

223.942

100 96.74 133.41

Advance 293.975

328.943

370.965

100 105.81 119.71

Interest receivable 20.249 18.205 16.814 100 106.64 154.37

Bills receivable

being bills for

collection

1.807 1.546 1.501

100 165.79 110.18

Branch adjustment - - 0.323 100 - 92.11

Good will (on

Amalgamation)1.740 1.244 0.822

100 182.63 174

Land & Building 3.634 3.603 5.142 100 113.05 215.54

Furniture & fixture 2.537 3.669 4.682 100 125.36 146.22

Computers 2.079 1.349 0.537 100 149.88 496.18

Vehicle 0.317 0.378 0.322 100 90.80 94.07

Other Assets 4.658 2.949 2.668 100 165.61 166.33

Trend Base on 2008

Liability 2008 2009 2010 2008 2009 2010

Paid up capital 10.425 12.32 14.935 100 109.99 129.96

Reserve & other

reserve 51.159 58.964 55.594

100 100.61 128.20

Deposits 538.458 581.938 663.667 100 102.39 127.94

Borrowings 0.431 0.015 - 100 73.68 -

Bills or collection

being bills

receivable

1.807 1.546 1.501

100 78.33 70.23

Branch adjustment 0.629 0.331 - 100 131.73 -

Outstanding

interest payable6.127 1.455 2.044

100 55.94 957.34

Overdue Interest

reserve15.352 14.025 12.502

100 99.55 142.33

Other Liabilities 16.254 16.577 15.188 100 135.84 138.92

Profit and loss

account1.729 2.214 2.341

100 103.66 109.22

Interpretation :- from above analysis it is concluded that with base of year 2008, in year 2009 and 2010 almost all assets of bank like cash, deposits with other bank, advances, interest receivable, land and building, furniture and fixture, computers has been increased gradually but investment decrease in the year 2009 but increases in the year 2008. Bill receivable being bills for collection increases in 2009 than 2008 but decreases in the year 2010 than 2009 but more than 2008.

II) Trend Analysis of Profit & Loss AccountTrend Base on 2008

2008 2009 2010 2008 2009 2010

Income

Interest & Discount 45.734 54.005 57.234 100 106.77 124.51

Dividend 0.154 1.363 1.185 100 125.36 116.05

Commission & Exchange 0.743 0.669 0.750 100 100 98.93

Profit on Sale of Investment - 18.024 0.343 100 109 78.25

Other Receipts 5.078 2.901 7.168 100 46.04 73.88

Total Income 51.709 76.966 66.68 100 487.17 491.62

Expenses

Interest 29.657 37.878 40.483 100 102.18 130.20

Salaries Allowances &

Provident Fund 10.174 16.015 13.841100 107.89 111.71

Directors & Local Committee

Members fees & Allowances 0.048 0.051 0.046100 11.58 12.63

Rent Taxes, Insurance, lighting

etc 1.524 1.875 2.326100 115.56 123.50

Law Charge 0.085 0.181 0.320 100 64.49 61.59

Postage, Telegrams &

telephone charges 0.222 0.23 0.427100 85.65 96.52

Depreciation on & Repairs in

property 2.157 2.602 2.795100 143.4 178.56

Stationary, printing

Advertisements 0.524 0.417 0.456100 106.71 152.77

Auditors fees 0.135 0.165 0.139 100 86.67 100

Amortization & Depreciation on

Govt. Securities 2.828 5.087 2.788100 254.95 135.64

Other Expenditure 1.089 1.135 1.337 100 96.77 113.44

Provisions & Contingencies 1.521 0.438 0.191 100 8.82 26.10

Income Tax 0.022 1.226 (1.278) 100 1655.56 30.87

Transfer to Investment

Fluctuation Reserve - - -100 - -

Total Expenses 49.98 74.752 64.339 100 2840.23 1273.53

Net Profit 1.729 2.214 2.341 100 -2353.06 -781.91

Interpretation :- In above analysis consider base period as 2008 an

values of all items of profit and loss account of 2010 is treated as 100 and

trend is calculated. It is found that interest & Discount, commission all

increasing in trend as comparative to 2008. Most of the expenses are also

increases.

In general in Total income is of 2008 – 100 Total Expenses of 2008 - 100

2009 – 487.17 2009 – 2840.23

2010 – 491.62 2010 – 1273.53

Cash flow statement for the year ended 31st march 2010

I 2009-10 2008-09Cash flow from operating activities Net Profit 22143 17293Adjustment for:Depreciation charged for the year 20676 18364Provisions & Contingencies 43859 10859( Profit ) / Loss on sale of fixed assets 126 10Trans from BDDR 0 (26500)Investment Fluctuation Reserve 30804 0Excess Provision written back (720) (2241)Account Written Off 0 794Goodwill written off 4148 4350Income Tax Provision 12262 221Operating Profit Before Working Capital Changes

133298 23150

Adjustments forDecrease /( Increase) in Funds 859 15994Decrease / ( Increase) in Call Money 0 150000Decrease / ( Increase) in investments 28324 (563661)Decrease / ( Increase ) in fixed deposits 60747 (42282)Decrease/(Increase) in Advances (354891) (350881)Decrease/(lncrease) in borrowings (4158) 3754 (Decrease) / Increase in Deposits 434688 1075330Decrease/(Increase) in other assets 10339 9302Increase / (Decrease) in other Liabilities & Provisions

(48784) 49400

Payment debited to reserve fund (Merger) (486) (343)Income tax Paid (3981) (221) Net cash flow from operating activities 255955 392897

II Cash flow from investing activitiesPurchase of Fixed assets (33493) (47511) Proceeds from sale of Fixed assets 266 3Net cash used in investing activities (33227) (47508)

III Cash flow from financial activitiesProceeds from issue of shares 18960 12158Dividend paid (8065) (6812)Net cash flow from financial activities 10895 2441

IV Net increase/(decrease) in cash & cash equivalents

233623 350735

V Cash & cash equivalent on 01-04-2009 821388 470653VI Cash & cash equivalent on 31-03-2010 1055011 821388

PROJECTED PROFIT & LOSS ACCOUNT FOR THE FINANCIAL YEAR 2010-2011

RATIO ANALYSIS

A) LIQUIDITY RATIO

1) Current Ratio = Current Asset Current Liability

For the year 2008

= 3.447 : 1

For the year 2009

= 4.497 : 1

For the year 2010

= 5.087 : 1

Interpretation :- The standard for this ratio is 2 : 1 here it is more than

that. It shows the short term paying capacity of Bank. Here the bank has

satisfactory short term paying position.

2) Interest received to total Income

For the year 2008

= 88.44%

For the year 2009

For the year 2010

= 81.33%

Interpretation: - This ratio gives relation between interest & total income. It

gives % of operating income.

3) Interest paid on deposit to Total income

For the year 2008

= 57.342 %

For the year 2009

For the year 2010

Interpretation: - This ratio gives how much amount the interest has been

paid up to deposit holder.

4) Net Profit to paid up share capital

For the year 2008

For the year 2009

For the year 2010

Interpretation: - This ratio gives how much amount getting to shareholder.

Higher the ratio better it is.

5) Total provision to Total income

For the year 2008

= 2.94 %

For the year 2009

For the year 2010

Interpretation: - This ratio gives how much provisions are made by bank

on its total income to meetits contingencies.

6) Total expresses to Total Income

For the year 2008

For the year 2009

For the year 2010

Interpretation: - This ratio of total expresses to total income. It is better if it

is minimum. for the point of view making profit expenses always less than

incomes.

7) Proprietary Ratio share holder

(Share holder fund = share capital + reserve and surplus + profit)

For the year 2008

=0.096 : 1

For the year 2009

=0.107 : 1

For the year 2010

=0.095 : 1

Interpretation :- This ratio gives the right of the shareholder in the total

value of Assets. The art of the shareholder must be greater as much as

possible Greater the ratio better it is.

Chapter – VII

conclusion

CONCLUSION

1 It concluded from the study that performance of the bank is up to

the mark.

2 It is observed that the trend of the financial position is in increase

in nature.

3 It is observed that profit is increased every year.

4 After comparing the financial statement it is observed that bank

has improvement its strength in financial position.

5 By doing or study it is concluded that Nagpur Nagrik Sahakari

Bank excellent bank in co-operative sector in district.

6 From ration analysis it is concluded that all ratio are up to the

standards. Therefore this bank is treated as Ideal Bank in co-

operative sector. In brief it is concluded that since this bank is for

the people, by the people and to the people.

7 It is running in good condition as well as it has credit worthiness.

Therefore this bank has future development aspect.

Chapter - VIIISuggestion

Suggestion

Profit of bank is increasing in rate but for improve its working and financial

position I suggest some points.

1) Marketing of bank is non proper, it wants to be improve.

2) Adopt new schemes.

3) Working condition of the staff should be improved.

4) Develop sources of earning.

Chapter - IX

Limitation

Limitations:

1) Due to limitation of data and time is restricted to the method chosen.

2) Data given by bank is limited for study.

3) The staff members could not give precise answers to some of the

questions.

4) Majority of data is collected through Secondary data; limitations of

secondary data are the limitation of study.

Chapter – X

Bibliography

Bibliography

1) N. Nagratnam - Management Accounting

Financial Management &

Holding Company account

2) Erich A. Heltert - Technique of Financial Analysis

3) C. R. Kothari - Research Methodology

4) V.K. Bhalla - Financial Management

5) Rastogi - Financial Management

6) Annual Report of Nagpur Nagrik Sahakari Bank.

Chapter – XI

Annexure

48 okW okf"kZd vgoky

Directors of Nagpur Nagrik Sahakari Bank

1) Shri. Rajesh V. Loya - Chairman

2) Dr. Shri. Sanjay N. Bhende - Vice Chair Person

3) Shri. Vijay Kumar G. Ruthiya - Director

4) Shri. Girish C. Deshmukh - Director

5) Shri.Nilkanth F. Devangan - Director

6) Shri. Ravindra P. Bokare - Director

7) Shri. Girish B.Vyas - Director

8) Shri. Rajesh S. Bagadi - Director

9) Smt. Punam S. Chandak - Director

10) Shri. Dilip N. Bhutada - Director

11) Shri. Chandrashekhat G.Devdhar - Director

12) Dr. Shri. Vasudev B. Malu - Director

13) Shri. Tusharkanti P. Dabalr - Director

14) Shri. Rajesh K. Lakhotiya - Director

15) Shri. Tarun C. Savla - Director

16) Shri. Vijay K. Umbarkar - Director

17) Smt. Alka C. Sherkule - Director

18) Shri. Manoj G. Dubele - (Staff Representative)

19) Shri. Dilip K. Mulmule - (Chief Executive

Officers)

Name of the officers

(Head office)

1) Shri. D.K. Mulmule - Chief Executive officer

2) Shri. P.D. Ghotekar - General Manager

3) Shri. S.N. Sapre - Asstt General Manager

4) Shri. S.P. Fadna vis - Asstt General Manager

5) Shri. S.V. Vidwans - Asstt General Manager

6) Smt. S.M. Mandhana - Asstt General Manager

7) Shri. R.L. Soni - Senior Manager

8) Shri. Anand Takar - Manager IT

9) Shri. V.D. Ambatkar - Manage P & A

10) Shri. Manish Mohata - Manager IT

11) Shri. Mohan Shah - BN Recovery

12) Shri. S.V. Jadhav - BM Establishment

13) Shri. S.A. Mankar - BM SHARE

14) Shri. R.S. Kapoor - Accountant

15) Shri. S.M. Gadge - Accountant

16) Shri. A.C. Dhande - Spl. ASSTT

17) Shri. U.R. Narad - Spl. ASSTT

18) Shri. R.R. Dongare - Clerk – IT

Name of Branch

1) Akola2) Amravati3) Chhindwada4) Dadar5) Deendayal NGR6) Dhantoli7) Dharampeth8) Ganjakhet9) Gittikhadan10) Hingna Road11) Indore12) Itwari13) Kalamana Market14) Kamtee15) Kamptee Road16) Katol17) Koradi18) Lakadganj19) Mahal20) Manewada Road21) Narkhed22) Sadar23) Pandhurna24) Sakkardara25) Service26) Sitabuldi27) Sivani28) Umrer29) Vashi30) Vivekanand Nagar31) Wadi32) Warud33) Vashi (New Mumbai)34) Head Office

BALANCE SHEET AS ON 31-03-2010

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED

31st MARCH 2008

Auditors' Report To The Members

(As required under Section 30 of Banking Regulation Act, 1949 as

applicable to Co-operative Societies read with Rule

17 of Multi-State Cooperative Societies Rules)

We have audited the attached Balance sheet of "NAGPUR NAGRIK

SAHAKARI BANK LIMITED" Nagpur as at 31s1

March, 2010 and also the Profit & Loss Account of the bank annexed

thereto the cash flow statement for the year ended

on that date in which are incorporated the returns of all Branches audited

by us.

These financial statements are the responsibility of the Bank's

management. Our responsibility is to express an opinion

on these financial statements based on our audit.

We conducted our audit in accordance with the auditing standards

generally accepted in India. Those Standards

require that we plan and perform the audit to obtain reasonable assurance

about whether the financial statements are

free of material misstatement. An audit includes examining, on a test basis,

evidence supporting the amounts and

disclosures in the financial statements. An audit also includes assessing the

accounting principles used and significant

estimates made by management, as well as evaluating the overall financial

statement presentation. We believe that our

audit provides a reasonable basis for our opinion.

Further to our comments referred above;

1. The Balance Sheet and Profit & Loss Account have been drawn up in

form 'A' and 'B' respectively of the Third Schedule to the Banking

Regulations Act, 1949.

2. We have obtained all the information and explanations which to the

best of our knowledge and belief were necessary for the purpose .of

our audit and have found them satisfactory.

3. In our opinion, the Bank, as required by law, has kept proper books of

account, so far as appears from our examination of the books.

4. The returns received from the branches of the banks have generally

been found adequate for the purpose of our audit.

5. The Balance Sheet and the Profit and Loss Account dealt with by this

report are in agreement with the books of account and the Branch

returns.

6. There has been no material impropriety and irregularity in the

expenditure or in the realization of money due to the bank, which

comes to our notice.

7. The transactions of the Bank, which have come to our notice, have

been within the competence of the Bank.

8. We report that:

Subject to limitation of audit indicated in paragraph '2 and 3' above

and reference is invited in Notes on accounts.

a) Note No. 1 regarding adjustment arising from reconciliation/clearance of

outstanding items stated therein. The effect of which is not ascertainable.

b) Note No. 9 regarding the approval of restructuring of Term Loan by

NABARD under package scheme.

We further report that: Subject to the observation in Para 8 above, our

comments and observation contained in Audit

memorandum and read with the significant Accounting policies and Notes

on Accounts thereon.

We further report that; In our opinion and to the best of our information and

according to the explanation given to us, the

accounts give a true and fair view.

i) In the case of Balance Sheet of the state of affairs of the Bank as at 31sl

March, 2010, ii) In the case of Profit & Loss Account of the profit of the

Bank for the year ended on that date, and iii) In case of the Cash Flow

Statement of the cash flows for the year ended on that date.

.

FOR PALIWAL MODANI & C O.,

Chartered Accountants.

Nagpur, Dated the

20"1August,2010