Project Report Financial Statement
Project Report Financial Statement
Project Report Financial Statement
Project Overview
What is the project about?
It is about analyzing the financial statement of the Industrial Cooperative Bank.
1.
2.
3.
4.
Methodology
Sample Size:-
The sample size is data of the following years i.e. 2008-2009, 2009-2010 and 2010-11.
Data Collection:-
Two types of data were considered for the study i.e.- (a) Primary data and (b)
Secondary Data.
Data Analysis:Tools & Techniques used:- 1) Ratio analysis & 2) Comparative & Common Size
Statement.
Data Representation:- Collected data will be presented in tabular format and will also
be represented using bar diagram and pie chart.
Overview
Current Ratio
Current Ratio
1.6
1.4
1.37
1.35
1.2
0.98
1
0.8
0.6
0.4
0.2
0
2009
2010
2011
2008-2009
1.36
2009-2010
2010-2011
1.34
0.98
1.36
1.34
1
0.98
0.8
0.6
0.4
0.2
0
2008-2009
2009-2010
2010-2011
2008-2009
2009-2010
2010-2011
13.42
11.24
10.90
Equity Ratio
16%
14%
12%
10%
8%
6%
4%
2%
0%
Equity Ratio
2008-2009
13.42
2009-2010
11.24
2010-2011
10.9
2008-2009
2009-2010
2010-2011
426.96
489.95
385.71
200.00%
400.00%
600.00%
2008-2009
2009-2010
2010-2011
426.96
489.95
385.71
Interpretation: From the above analysis it reveals that ratio of current assets to
proprietors fund increased from 2008-09 to 2009-10 but decreased from 200910 to 2010-11.
RETURN ON
SHAREHOLDERS
INVESTMENT (%)
2008-2009
2009-2010
2010-2011
5.06
6.01
5.08
2008-2009
2009-2010
2010-2011
5.06
6.01
5.08
2008-2009
RETURN ON EQUITY
CAPITAL (%)
102.35
2009-2010
115.84
2010-2011
106.84
2008-2009
2009-2010
2010-2011
102.35
115.84
106.03
2009-2010
22.51
24.90
2010-2011, 21.3
2010-2011
21.30
2008-2009, 22.51
2009-2010, 24.9
Interpretation: From the above analysis, it reveals that Earning per Share
(EPS) was high in the year 2009-10 but declined in the next year 2010-11.
CAPITAL STRUCTURE
RATIO OF CURRENT LIABILITIES TO PROPRIETORS FUND
YEAR
RATIO OF CURRENT
LIABILITIES TO
PROPRIETORS FUND
2008-2009
2009-2010
3.12
3.62
2010-2011
3.90
3.9
2010-2011
3.62
2009-2010
3.12
2008-2009
0.5
1.5
2.5
3.5
2008-2009
2009-2010
2010-2011
1819
1711
1879
1900.00%
1850.00%
1819
1800.00%
1750.00%
1711
1700.00%
1650.00%
1600.00%
Ratio of Reserve to Capital
2008-2009
1819
2009-2010
1711
2010-2011
1879
2009-2010
(In Rs.)
15,01,37,278.36
7,79,57,893.00
66,30,84,834.00
31,47,526.00
74,80,145.00
13,61,562.00
17,55,87,266.70 + 254,49,988.70
29,96,65,076.11 +221,707,183.11
67,76,16,468.60 + 14,531,634.50
4,42,000.83 - 2,705,525.17
56,07,314.48 - 1,872,830.52
20,07,447.77 + 645,885.77
+ 16.95
+ 284.40
+ 2.19
- 85.96
- 25.04
+ 47.43
903,169,238.36
1,160,925,574.49 + 257,756,335.40
+ 28.53
Fixed Assets:
Land & Building
Furniture & Fixture
Investment
Advance
8,64,46,017.00
59,21,186.00
8,59,38,617.00
69,48,738.30
-507,400.00
+ 1,027,552.30
- 0.58
+17.35
92,367,203.00
92,887,355.30
+ 520,152.30
+ 16.77
30,05,65,026.00
102,184,014.00
40,11,19,224.25 + 100,554,198.25
223,389,340.00 +121,205,326.00
+ 33.45
+ 118.61
157,55,67,411.00
2,10,74,59,896.14 +531,892,485.14
+ 33.75
2008-2009
Rs.
Total Income
14,80,35,530
Less:1) Interest on deposits and borrowings 7,64,31,054
2) Salaries, allowances & staff
provident fund
4,12,74,209
3) Rent, Taxes, Insurance & Lighting
10,21,002
2009-2010
%
Rs.
100.00
16,68,88,827
100.00
51.63
9,23,14,199
55.31
27.88
3,05,59,772
00.68
11,23,032
18.31
00.67
11,17,258
00.75
15,83,866
00.94
1,49,000
00.10
1,11,000
00.06
6) Law Charges
2,67,232
00.18
1,84,064
00.11
1,57,803
00.10
1,04,367
00.06
8) Audit Fees
3,38,903
00.22
3,87,800
00.23
23,07,183
01.58
23,89,258
01.43
6,11,844
00.41
8,86,495
00.53
1,36,51,651
09.22
2,30,05,456
13.78
1,07,08,392
07.23
1,42,39,518
08.53
2010-2011
DECREASE (%)
17,55,87,266.70
9,56,83,079.25 - 79,904,187.45
29,96,65,076.11 28,03,36,994.31
-19,328,081.80
67,76,16,468.60 71,93,96,258.20 + 41,779,789.60
4,42,000.83
4,42,000.83
0.00
56,07,314.48
55,71,582.37
- 35,732.11
20,07,447.77
24,20,663.45
+ 413,215.68
- 45.50
- 6.45
+ 6.16
0.00
- 00.63
+ 20.58
-57,074,996.08
-4.91
8,59,38,617.00 8,54,43,902.00
69,48,738.30
81,61,421.30
- 494715.00
+ 1,212,683.00
- 00.57
+ 17.45
92,887,355.30
+ 717,968.00
+ 00.77
Fixed Assets:
Land & Building
Furniture & Fixture
Investment
Advance
93,605,323.30
401,119,224.25 668,057,297.85
223,389,340.00 234,605,738.12
624,508,564.25
+ 266,938,073.60
+ 11,216,398.12
+ 66.54
+ 05.02
902,663,035.97 + 278,154,471.72
+ 44.53
2009-2010
2010-2011
INCREASE/
DECREASE
INCREASE/
DECREASE (%)
Current Liabilities
Deposits &
Other Accounts
Bills Payable
Dividend Payable
Audit Fees
Sundries
Service Tax Payable
1,00,31,717.00
20,00,232.00
90,000.00
71,76,140.00
2,071.00
Capital
Reserve Fund &
Other Reserves
+ 305,715.92
+ 860,890.87
+ 56,462.00
+ 11,201,724.99
- 1,443.00
+ 3.04
+ 43.04
+ 62.73
+ 156.09
- 69.67
+ 30.18
122,91,625.00
1,03,37,432.92
28,61,122.87
1,46,462.00
1,83,77,864.99
628.00
+ 29.40
1,37,22,425.00
+ 1,430,800.00
+ 11.64
21,04,13,557.00 25,79,13,679.57
+ 47,500,122.57
+ 22.57
222,705,182.00
+ 48,930,922.57
+ 21.97
56,07,314.00
-----------
271,636,104.57
55,71,582.37
- 35,731.63
-------------------
4,42,000.00
3,68,20,250.00
2,04,45,890.00
1,42,39,517.00
4,42,000.00
3,38,78,033.64
3,24,21,510.78
1,45,50,356.12
0.00
- 2,942,216.36
+ 11,975,620.78
+ 310,839.12
77,554,971.00
86,863,482.91
+ 9,308,511.91
96,73,16,214.40
97,10,42,825.80
+ 3,726,611.40
- 00.63
--------0 .00
- 7.99
+ 58.57
+ 2.18
+ 12.00
+ 00.38
2009-2010
Rs.
2010-2011
%
Total Income
16,68,88,827.00 100.00
Less:1) Interest on deposits and borrowings 9,23,14,199.00 55.31
2) Salaries, allowances & staff
provident fund
3,05,59,772.00 18.31
3)
11,23,032.00
15,83,866.00
Rs.
22,58,09,300.33 100.00
12,23,59.097.77 54.18
3,32,65,245.12
14.73
00.67
12,40,398.50 00.54
00.94
18,74,994.00
00.83
1,11,000.00
00.06
2,91,750.00
00.12
6) Law Charges
1,84,064.00
00.11
2,31,800.00
00.10
1,04,367 .00
00.06
1,05,345.44
00.04
8) Audit Fees
3,87,800 .00
00.23
4,53,108.00
00.20
23,89,258.00
01.43
37,67,654.00
01.68
8,95,080.50
00.39
8,86,495 .00
00.53
2,30,05,456.00 13.78
142,39,518.00 08.53
4,67,74,470.88 20.71
1,45,50,356.12 06.44
FINDINGS
b)
Quick or Acid Test Ratio on the other hand in previous years of 2009
and 2010 was more than normal standard of 1:1 but falls below the
normal standard in the year 2011 i.e. 0.98 which is a cause of concern.
c)
Equity
Ratio
of
the
Industrial
Co-operative
Bank
Ltd.
is
not
e)
f)
g)
The Earning per Share (EPS) increase from 22.51 (2008-09) to 24.90in
the year 2009-10 but it had again decreased in the year 2010-11 to 21.30.
a)
b)
From the Comparative Balance Sheet I found that the current assets has
been increased from year 2008-09 to 2009-10 but decreased in the next
year 2009-10 to 2010 -11. Although the current liabilities has been
increasing from the last 3 years.
c)
RECOMMENDATION
1) From the data analysis, I found that the Current Ratio is not satisfactory,
and so is the Quick or Acid Test Ratio which has fallen under the normal
standard in the last year. So, the Industrial Co-operative Bank Ltd. needs
to improve its short-term financial position.
2) After the analysis of Equity Ratio, I found that the ratio is not satisfactory
but they are improving. The bank needs to emphasize on the
improvement of its long term solvency position.
3) Return on Shareholders investment or Net Worth reveals how well the
resources of a firm being used, higher the ratio better the results. But the
ratio is not very satisfactory; the bank needs to improve it as this ratio is
of great importance to the present and prospective shareholders as well as
the management of the bank.
1) From the above analysis, I found out that the shareholders are not getting
good return .On the other hand Industrial Co-operative Bank Ltd. has
sufficient funds in the Reserves. The bank should give shareholders a
good return on their investment so that they dont get demoralized.
2) From the above analysis I found out that the rate of profitability has
decreased in the last year due to increase in banks operating and other
expenses. So the bank should try to control and reduce its expenses so
that it will help the organization to gain more profit from its business.
3) From the above analysis I found that the current liabilities are increasing.
The banks position will improve if it carefully manage its current
liabilities and put more finds in current assets.