Bank of Baroda

1

Chapter 1

INTRODUCTION

Finance is the study of funds management. The general areas of finance

are business finance, personal finance (private finance), and public finance. Finance

includes saving money and often includes lending money. The field of finance deals

with the concepts of time, money, risk and how they are interrelated. It also deals with

how money is spent and budgeted.

One facet of finance is through individuals and business organizations,

which deposit money in a bank. The bank then lends this money out to other

individuals or corporations for consumption or investment and charges interest on the

loans.

Loans have become increasingly packaged for resale, meaning that

an investor buys the loan (debt) from a bank or directly from a corporation. Bonds are

debt instruments sold to investors for organizations such as companies, governments

or charities. The investor can then hold the debt and collect the interest or sell the debt

on a secondary market. Banks are the main facilitators of funding through the

provision of credit, although private equity, mutual funds, hedge funds, and other

organizations have become important as they invest in various forms of debt.

Financial assets, known as investments, arefinancially managed with careful attention

to financial risk management to control financial risk. Financial instruments allow

many forms of securitized assets to be traded on securities exchanges such as stock

2

exchanges, including debt such as bonds as well as equity inpublicly traded

corporations.

Central banks, such as the Federal Reserve System banks in the United

States and Bank of England in the United Kingdom, are strong players in public

finance, acting as lenders of last resort as well as strong influences on monetary and

credit conditions in the economy.

Finance is the important part of every business with out finance business cant

carry on it. Means any organization can depends on finance it means the finance of

business is the life blood of business.

Resources and judicious use of finance of the two important activity under

financial management just as production and sales are major functioning an

enterprises finance too is an independent specialized fund skill it is well lenit with the

other function financial manager meat, this a separate management area without

finance neither business sharted as successful run.

Finance is the foundation stone of every business in the present day set-up no

business can be started without adequate finance can be developed the success of

every business depends upon adequate source of finance.

The financing of scale trade & partnership is not difficult as the main source of

finance is their own contribution of financial requirement are limited in the present

modem set up generally business are raw but big company has financial requirement

are large volume of financial requirement are large volume of finance which can not

be contributed by few inventors.

3

INTRODUCTION OF FINANCIAL MANAGEMENT:

In the modern business society function are drawing increasing more and more

attention of those who are responsible for running administration business. There is

always a problem with even organisation for managing its expanding and

modernization plans with its limited financial resources.

The financial management has there fore, been assigned the task of planning

& controlling the long and short term financial needs of the business. Jamesvan horn

planning is an inextricable dirnenssion of financial Management cannot that funds

flows are directed according to some plan. The finance function centres round the

management of financial management of funds raising and using them effectively,,

but the dimenssion of financial management are much broader then the procurement

of funds.

Planning is on of the most important activity of the financial managers to

obtain Hinds of the best time in relation to their cost of the condition under which

they can be obtained and their effective use by the business firm.

Financial Management is the dynamics evolving on making of day-to-day

financial decisions in a business of any size. The old concept of finance as treasure

ship has broadened & include the new quality meaningful concept of controllership.

while the treasure keeps track of the moneys the controllers duties extent to planning

analysis and the improvement of every phase of the companies operation which are

measure with a financial yardstick.

4

SOURCE OF FINANCE:

By looking at the various forms of "shares" as a means to raise new capital and

retained earnings as another source. However, whilst these may be "traditional" ways

of raising funds, they are by no means the only ones. There are many more sources

available to companies who do not wish to become "public" by means of share issues.

These alternatives include bank borrowing, government assistance, venture capital

and franchising. All have their own advantages and disadvantages and degrees of risk

attached.

A company might raise new funds from the following sources:

The capital markets:

i) new share issues, for example, by companies acquiring a stock market

listing for the first time

ii) rights issues

Loan stock

Retained earnings

Bank borrowing

Government sources

Business expansion scheme funds

Venture capital

Franchising.

5

SOURCES OF FINANCE: DURATION

Depending on the date of maturity, sources of finance can be clubbed into the

following:

1) Long-term sources of finance:

Long-term financing can be raised from the following sources:

Share capital or equity share

Preference shares

Retained earnings

Debentures/Bonds of different types

Loans from financial institutions

Loan from state financial corporation

Loans from commercial banks

Venture capital funding

Asset securitisation

International

6

2) Medium-term sources of finance:

Medium-term financing can be raised from the following sources:

Preference shares

Debentures/bonds

Public deposits/fixed deposits for duration of three years

Commercial banks

Financial institutions

State financial corporations

Lease financing / hire purchase financing

External commercial borrowings

Euro-issues

Foreign currency bonds

2) Short term sources of finance:

Short-term financing can be raised from the following sources:

Trade credit

Commercial banks

Fixed deposits for a period of 1 year or less

Advances received from customers

Various short-term provisions

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Short Term Sources Of Debt Finance

The most common forms are:

1) Bank overdraft

This is probably the most available and appropriate source of short-term

borrowings. Subsequently to negotiation, the bank allows the borrower to overdraw

his account up to a specified limit, which is reviewed on a regular basis, normally

annually. This gives the entrepreneur the flexibility of altering his financing

requirements from day to day according to his cash flow.

With overdrafts, interest is calculated on the daily outstanding balance. This

means that no interest is paid on any unutilized portion of the facility. Interest rates

charged fluctuate with the prime rate and this facility is generally used for financing

increases in working capital. However, it is also useful when bridging finance is

required where a gap exists between a long-term debt and the long-term source of

finance becoming available. It is important to realize that bank overdrafts are

repayable on demand.

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2) Factoring

Factoring is a term referring to the raising of funds by the sale or assign-ment

of book debts to a third person i.e. a factor. The sale is normally with recourse to the

seller for uncollectable debts. It may include all or some of the debts sold. The

system may require the debtor to pay direct to the factor or via the original creditor as

an agent for the factor, and completes the transaction as agent of the factor. This

latter method has the advantage of maintaining the confidentiality of the arrangement

between the seller and the factoring house.

Factoring is a very convenient method of financing shortages in working

capital and is frequently an attractive proposition to a new business faced with a

substantial growth in sales which need to be financed. However, one needs to ensure

that gross income margins generated by these sales can satisfactory absorb the costs

of the factoring procedure.

An additional advantage of factoring accrues to the seller by the possible

savings in staff and paperwork associated with maintaining accounts and monitoring

debtors. Furthermore, cash is received immediately and the seller is not obliged to

include a discount for prompt payment. Most banks have factoring divisions.

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3) Shippers finance

A shipper (or customer) is a financial institution which provides finance and a

host of other services to its clients.Today, the functions of the confirming houses take

the following basic forms:

Providing working capital:The confirmer provides facilities to clients, to create

additional working capital and enable the client to finance his stock and

receivables.

Sophisticated forms of finance are provided which can briefly be summarized into

three broad categories:

An overseas purchase facility.

A local purchase facility.

The discounting of customers bills.

Providing services:The confirmer attends to the physical handling of the goods and

the documentation relative thereto, and provides specialized services in order to

expedite receipt and reduce the cost of imports into South Africa.

Providing backing, assistancr and financial expertise:The confirmer backs and

assists the client with the technical and credit expertise that the confirming houses

management possesses, thereby increasing profitability and thus helping companies

to grow from small to large organizations.

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Medium-Term Sources Of Debt Finance

In financial language, medium-term can be thought of as constituting a broad

and ill-defined border between short-term and long-term. As a result, this type of

finance has a variety of applications such as financing additional working capital,

acquisition of fixed assets, etc.

Medium-term loans

A common form of finance is the medium-term loan which normally

provides finance for up to five years and in accordance with a strict set of conditions

outlined in a term loan letter of offer by the financial institution and accepted by the

client.

Generally the lender will require security for the loan and seek to entrench the

safety of the loan by imposing certain restrictions on the borrower, such as maximum

permissible equity to debt and working capital ratios, and limitations on the sale or

pledge of assets and payment of dividends.

Term loans are normally tailored to meet the particular cash flow requirements

of a business. They are used for the finance of both current assets and fixed assets.

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Instalment sale

Previously known as Hire Purchase, the most common application is to

finance the acquisition of vehicles or equipment. In terms of the regulations in the

Credit Agreements Act, a deposit is normally required and, depending on the

acquisition, the period for payment is fixed. The goods purchased are registered in

the owners name and are always taken as prime security for the debt.

Leasing

Leasing is a method of reducing capital funding requirements. Instead of

acquiring finance to purchase fixed assets, the process is cut short by obtaining the

use but not ownership of the required assets in return for a periodic lease payment.

Leasing, based on the principle that income is earned from the use of an asset,

not the ownership, provides the following advantages:

Cash resources may be released for more profitable trading and for the provision of

working capital.

Maintenance costs are reduced to a minimum by immediate replacement with

new equipment at the end of the lease period.

Plant and equipment are financed over a period directly related to their

productive capacity and useful life. Budgeting is simplified, as the monthly cash flows

are known, as is the date when the equipment must be replaced.

Rental payments are deducted in full for tax purposes. These payments are a

charge against profits before tax, whereas Instalment sale payments are paid out of

income after tax.

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Long-Term Sources Of Finance

1) Long-term debt finance

Into this category fall building societies and insurance companies. Insurance

company policy holders can, under certain conditions, borrow money against the

surrender value of their policies and this may be one way of raising capital for the

new venture of your choice. Building societies, on the other hand, may be open to

entertaining your proposal for long-term loan against the security of your private

residence. These funds could then be injected into your business.

2) Participation bonds

Bond finance for up to 20 years can be arranged for the erection of

commercial/industrial property or against commercial/industrial premises owned by

you. No capital (i.e. interest only) is repaid for the first five years. Thereafter the

loan is repaid in annual instalments. For bond purposes the value of the property is

based on its revenue-producing potential and not on the replacement or intrinsic value

of the property.

The long-term sources of finances can be raised from the following sources:

Share capital or Equity Share.

Preference shares.

Retained earnings.

Debentures/Bonds of different types.

Loans from financial institutions.

Loan from State Financial Corporation.

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Loans from commercial banks.

Venture capital funding.

Asset securitisation.

International

3) Dividend

Definition: Dividend is the distribution of value to shareholders.

Dividend Policy: What happens to the value of the firm as dividend is

increased, holding everything else (capital budgets, borrowing) constant. Thus, it is a

trade-off between retained earnings on one hand, and distributing cash or securities

on the other.

Dividends are payments made by a corporation to its shareholder members. It

is the portion of corporate profits paid out to stockholders. When a corporation earns a

profit or surplus, that money can be put to two uses: it can either be re-invested in the

business (called retained earnings), or it can be paid to the shareholders as a dividend.

Many corporations retain a portion of their earnings and pay the remainder as a

dividend.

Joint stock Company, a dividend is allocated fast as a fixed amount per

share. Therefore, a shareholder receives a dividend in proportion to their

shareholding. For the joint stock company, paying dividends is not an expense; rather,

it is the division of an asset among shareholders. Public companies usually pay

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dividends on a fixed schedule, but may declare a dividend at any time, sometimes

called a special dividend to distinguish it from a regular one

Cooperatives, on the other hand, allocate dividends according to members' activity, so

their dividends are often considered to be a pre-tax expense.

Settlement of Dividend

Dividends are usually settled on a cash basis, as a payment from the company

to the shareholder. They can take other forms, such as store credits (common among

retail consumers' cooperatives) and shares in the company (either newly-created

shares or existing shares bought in the market.) Further, many public companies offer

dividend reinvestment plans, which automatically use the cash dividend to purchase

additional shares for the share holders.

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Types Of Dividend

Cash dividend: It takes various forms

1) Regular cash dividend cash payments made directly to stockholders,

usually each quarter

2) Extra cash dividend indication that the extra amount may not be

repeated in the future

3) Special cash dividend similar to extra dividend, but definitely wont

be repeated

4) Liquidating dividend some or all of the business has been sold

Stock Dividends:

1) Pay additional shares of stock instead of cash.

2) Increases the number of outstanding shares.

3) Small stock dividend

a. Less than 20 to 25%

b. If you own 100 shares and the company declared a 10% stock

dividend, you would receive an additional 10 shares

4) Large stock dividend more than 20 to 25%

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Chapter 2

COMPANY PROFILE

Bank of Baroda (BoB) is the third largest bank in India, after the State Bank

of India and the Punjab National Bank and ahead of ICICI Bank. BoB is ranked 763

in Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh crores, or

Rs. 3,583 billion, a network of over 3,409 branches and offices, and about 1,657

ATMs. It plans to open 400 new branches in the coming year. It offers a wide range

of banking products and financial services to corporate and retail customers through a

variety of delivery channels and through its specialized subsidiaries and affiliates in

the areas of investment banking, credit cards and asset management. Its total business

was Rs. 5,452 billion as of June 30.

As of August 2010, the bank has 78 branches abroad and by the end of FY11

this number should climb to 90. In 2010, BOB opened a branch in Auckland, New

Zealand, and its tenth branch in the United Kingdom. The bank also plans to open five

branches in Africa. Besides branches, BoB plans to open three outlets in the Persian

Gulf region that will consist of ATMs with a couple of people.

The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20

July 1908 in the princely state of Baroda, inGujarat. The bank, along with 13 other

major commercial banks of India, was nationalised on 19 July 1969, by

the government of India.

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INTERNATIONAL PRESENCE

Bank of Baroda Building in Dubai

In its international expansion, the Bank of Baroda followed the Indian

diaspora, especially that of the Gujaratis. It has significant international presence with

a network of 72 offices in 25 countries, six subsidiaries, and four representative

offices.

Among the Bank of Barodas 85 overseas branches are ones in the worlds

major financial centers (e.g., New York,London, Dubai, Hong Kong (which it has

upgraded recently), Brussels and Singapore), as well as a number in other countries.

The bank is engaged in retail banking via 17 branches of subsidiaries

in Botswana, Guyana, Kenya, Tanzania, and Uganda. The Bank of Baroda also has a

joint-venture bank in Zambia with nine branches. The Bank of Baroda maintains

representative offices in Malaysia, China, Thailand, and Australia. It plans to upgrade

its offices in China and Malaysiashortly to a branch and joint-venture, respectively.

The Bank of Baroda has received permission or in-principle approval from

host country regulators to open new offices inTrinidad and Tobago and Ghana, where

it seeks to establish joint ventures or subsidiaries. The bank has received Reserve

Bank of India approval to open offices in The Maldives, and New Zealand. It is

seeking approval for operations in Bahrain, South Africa, Kuwait, Mozambique,

and Qatar, and is establishing offices in Canada, New Zealand, Sri

Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing

operations in the United Kingdom, the United Arab Emirates, and Botswana. The

slogan of Bank of Baroda is "India's International Bank".

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HISTORY

1908-1959

1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB)

1961: BoB merged in New Citizen Bank of India. This merger helped it increase

its branch network in Maharashtra.

BOB also opened a branch in Fiji.

1962: BoB opened a branch in Mauritius.

1972: BoB acquired The Bank of Indias operations in Uganda.

1974: BoB opened a branch each in Dubai and Abu Dhabi.

1975: BoB acquired the majority shareholding and management control

of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954),

both in Uttar Pradesh. Since then, Nainital Bank has expanded

to Uttarakhand State.

1985: BoB (20%), Bank of India (20%), Central Bank of India (20%) and

ZIMCO (Zambian government; 40%) established Indo-Zambia

Bank (Lusaka). BoB also opened an Offshore Banking Unit (OBU) in

Bahrain.

1988: BoB acquired Traders Bank, which had a branch network in Delhi

1990: BoB opened an OBU in Mauritius, but closed its representative office in

Sydney.

1991: BoB took over the London branches of Union Bank of India and Punjab

& Sind Bank (P&S). P&Ss branch had been established before 1970 and

Union Banks after 1980. The Reserve Bank of India ordered the takeover of

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the two following the banks' involvement in the Sethia fraud in 1987 and

subsequent losses.

2000: BoB established Bank of Baroda (Botswana).

2003: BoB opened an OBU in Mumbai.

2010: Malaysia awarded a commercial banking license to a locally

incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas

Bank and Andhra Bank. The new bank, India BIA Bank (Malaysia), will

reside in Kuala Lumpur, which has a large population of Indians. Andhra

Bank will hold a 25% stake in the joint-venture, BoB will own 40% and IOB

the remaining 35%.

SUBSIDIARIES

BOB Capital Markets Ltd. (BOBCAPS) is a SEBI registered investment

banking company based in Mumbai, Maharashtra. It is a wholly owned subsidiary

of Bank of Baroda. Its financial services portfolio includes Initial Public Offerings,

private placement of debts, corporate restructuring, Business valuation, mergers &

acquisition, project appraisal and loan syndication.

BANK OF BARODA FINANCIALS 2013

Sales Rs. 24,695 crores

Profits Rs. 4,241 crores

Assets Rs. 3,58,397 crores

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Chapter 3

OBJECTIVES OF THE STUDY

1) To study the basic concepts of financing.

2) To study details about Bank of Baroda in Chandrapur.

3) To study the different sources of finance depending on duration.

4) To study short term finance available in Bank of Baroda with reference to

Chandrapur.

5) To study Long term finance available in Baroda Bank with reference to

Chandrapur.

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Chapter 4

IMPORTANCE OF THE STUDY

1) This Study will try to investigate various finance schemes of Magma Finance.

2) This study will gather information about short term and long term finances available in Magma finance.

3) This study will try to understand other sources of finance in Bank of Badoda, Chandrapur including short term and long term finance.

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Chapter 5

HYPOTHESIS

1) Long Term Finance play or important role in a companies financial position.

2) Source of finance is life blood of a company.

3) Planning and operational activities largely depend on it.

4) Sources of finances are used funding a long time of company.

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Chapter 6

RESEARCH METHODOLOGY

Research in a common parlance refers to a search of knowledge. One can also

define research as a scientific and systematic search for pertinent information on a

scientific investigation.

The advance learner dictionary of current English lays down the meaning of

research as a careful investigation or inquiry especially through search for new facts

in any branch of knowledge.

Redmen and Mory define research as a systematized efforts to gain new

knowledge.

Research is an academic activity and as such the term should be used in a

technical sense.

Rationale of the study

Bank of Baroda provide the long term and short term finance to the every

people. So the howto decide the invest their money in long term or short term.What

are the facility they are provide to the people in long term investment and short term

investment.

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DATA COLLECITON:

1) Primary data:

The primary data are those which are collected for the first time, and thus

happen to be originally collected through various sources.

2) Secondary data:

The secondary data, on the other hand, are those which have already been

collected by someone else and which have already been passed through the statistical

process.

The methods of collection or primary and secondary data differ since primary

data is to be originally collected. While in case of the secondary data the nature of the

data collection work is merely that of compilation.

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Chapter 7

REVIEW OF LITERATURE

1) Comparison between U.S. and European bank acquisitions.; Lionel

Miron; Fabien Patel; [2008]

Takeover is a business activity which really started in the beginning of the

eighties and which still takes a strong part in the business and financial area all over

the world. According to our studies as the desire for further acknowledgements and

the desire of building a career around financial activities, this study has been naturally

conducted in the banking area. The study and the comparison between the United

States and Europe have shown some differences between the two areas. Nevertheless

it seems that negative abnormal returns are usually the case after such takeovers on

the whole period studied. Some positive abnormal returns have been recorded at

different points in the time into the studying period. According to the models we

applied, the US banks results seem to be better than the ones of European banks: the

differences range from 5,58 to 16,65 points under the MM, and from 1,66 to 18,08

points under the MAR model.

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2) How To Analyze A Company's Financial Position; Shridhar Roy (2009)

To understand and value a company, investor have to look at its financial position.

Fortunately, this is not as difficult as it sounds. If you borrow money from a bank, you

have to list the value of all your significant assets, as well as all your

significant liabilities. Your bank uses this information to assess the strength of your

financial position; it looks at the quality of the assets, such as your car and your

house, and places a conservative valuation upon them. The bank also ensures that all

liabilities, such as mortgage and credit card debt, are properly disclosed and fully

valued. The total value of all assets less the total value of all liabilities gives your net

worth, or equity. Evaluating the financial position of a listed company is quite similar,

except investors need to take another step and consider financial position in relation

to market value.

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Chapter 8

DATA ANALYSIS AND INTERPRETATION

Balance Sheet of Bank Of Baroda

------------------- in Rs. Cr. -------------------

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

Capital and Liabilities:

Total Share Capital 392.81 365.53 365.53 365.53 365.53

Equity Share Capital 392.81 365.53 365.53 365.53 365.53

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 20,600.30 14,740.86 12,470.01 10,678.40 8,284.41

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 20,993.11 15,106.39 12,835.54 11,043.93 8,649.94

Deposits 305,439.48 241,044.26 192,396.95 152,034.13 124,915.98

Borrowings 22,307.85 13,350.09 5,636.09 3,927.05 1,142.56

Total Debt 327,747.33 254,394.35 198,033.04 155,961.18 126,058.54

Other Liabilities & Provisions

9,656.73 8,815.97 16,538.15 12,594.41 8,437.70

Total Liabilities 358,397.17 278,316.71 227,406.73 179,599.52 143,146.18

Assets

Cash & Balances with RBI

19,868.18 13,539.97 10,596.34 9,369.72 6,413.52

Balance with Banks,

Money at Call 30,065.89 21,927.09 13,490.77 12,929.56 11,866.85

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Advances 228,676.36 175,035.29 143,985.90 106,701.32 83,620.87

Investments 71,260.63 61,182.38 52,445.88 43,870.07 34,943.63

Gross Block 4,548.16 4,266.60 3,954.13 3,787.14 2,244.62

Accumulated Depreciation 2,248.44 1,981.84 1,644.41 1,360.14 1,155.81

Net Block 2,299.72 2,284.76 2,309.72 2,427.00 1,088.81

Capital Work In Progress 0.00 0.00 0.00 0.00 0.00

Other Assets 6,226.40 4,347.22 4,578.12 4,301.83 5,212.50

Total Assets 358,397.18 278,316.71 227,406.73 179,599.50 143,146.18

Contingent Liabilities 112,272.64 77,997.01 64,745.82 75,364.33 54,999.86

Bills for collection 33,735.67 27,949.60 22,584.64 15,105.51 12,976.53

Book Value (Rs) 536.16 414.71 352.37 303.18 237.46

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Cash Flow of Bank Of Baroda

------------------- in Rs. Cr. -------------------


Net Profit Before Tax 5650.32 4238.06 3342.94 2207.16 1654.26

Net Cash From Operating Activities

11778.81 11252.45 1125.47 2241.82 5153.94

Net Cash (used in)/from Investing Activities

-489.76 -335.01 -238.93 -235.13 -307.65

Net Cash (used in)/from Financing Activities

3177.96 462.51 901.29 2012.23 -20.56

Net (decrease)/increase In Cash and Cash Equivalents

14467.01 11379.94 1787.83 4018.92 4825.73

Opening Cash & Cash Equivalents

35467.06 24087.12 22299.29 18280.37 13454.64

Closing Cash & Cash Equivalents

49934.07 35467.06 24087.12 22299.29 18280.37

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ANALYSIS OF LONG TERM FINANCE :


Total

Share Capital 392.81 365.53 365.53 365.53 392.81

Equity Share Capital

392.81 365.53 365.53 365.53 392.81

Preference Share Capital

0.00 0.00 0.00 0.00 0.00

Net Cash (used in)/from Investing Activities

-489.76 -335.01 -238.93 -235.13 -307.65

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1) Total Share Capital :


Total Share Capital 392.81 365.53 365.53 365.53 392.81

Total share capital of the company has been remains somewhat constant

during last five years.

392.81

365.53 365.53 365.53

392.81

350

355

360

365

370

375

380

385

390

395

Year 2013 Year 2012 Year 2011 Year 2010 Year 2009

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2) Equity Share Capital:


Equity Share Capital 392.81 365.53 365.53 365.53 392.81

Equity share capital of the company has remain unchanged in year 2010 to 2012

i.e. the it shows constant growth.

392.81

365.53 365.53 365.53

392.81

350

355

360

365

370

375

380

385

390

395


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3) Reserves:


Reserves 20,600.30 14,740.86 12,470.01 10,678.40 8,284.41

Reserves of the company has increased in year 2010 to 2013

20,600.30

14,740.86

12,470.01

10,678.40

8,284.41

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00


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4) Deposits:


Deposits 305,439.48 241,044.26 192,396.95 152,034.13 124,915.98

Deposits of the company are 305,439.48 in year 2013, 241,044.26 in year

2012, 192,396.95 in year 2010 and 124,915.98 in year 2009.

Thus the deposits which is the long term source of finance is increased every

year. It is maximum in 2013 as compared to other financial years.

305,439.48

241,044.26

192,396.95

152,034.13

124,915.98

0.00

50,000.00

100,000.00

150,000.00

200,000.00

250,000.00

300,000.00

350,000.00


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5) Borrowings:


Borrowings 22,307.85 13,350.09 5,636.09 3,927.05 1,142.56

Borrowings of the company are 22,307 in year 2013, 13,350.09 in year 2012,

5,636.09 in year 2011, 3,927.05 in year 2010, 1,142.56 in year 2009. Thus the

borrowings of the company are increased last five years.

22,307.85

13,350.09

5,636.09

3,927.05

1,142.56

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00


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6) Cash & Balance with RBI:


Cash &

Balances with

RBI

19,868.18 13,539.97 10,596.34 9,369.72 6,413.52

Cash & balances with 19,868.18, 13,539.97 in year 2012, 10,596.34 in

year 2011, 9,369.72 in year 2010 and 6,413.52 in year 2009. Thus the cash and

bank balances of the company are increased in year 2013 as compared with

last four financial years.

19,868.18

13,539.97

10,596.349,369.72

6,413.52

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00


37

SHORT TERM FINANCE


Investments 71,260.63 61,182.38 52,445.88 43,870.07 34,943.63

Advances 228,676.36 175,035.29 143,985.90 106,701.32 83,620.87

Net Cash From

Operating Activities 11778.81 11252.45 1125.47 2241.82 5153.94

7) Investments:


Investments 71,260.63 61,182.38 52,445.88 43,870.07 34,943.63

Investments of company has increased in year 2012 as compared with the

balancesheets of last four years. It was 34,943.63 in year 2009 and 71,260.63 in year

2013.

71,260.63

61,182.38

52,445.88

43,870.07

34,943.63

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

80,000.00


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8) Advances:


Advances 228,676.36 175,035.29 143,985.90 106,701.32 83,620.87

Loans and advances of the company had increased from 83,620.87 to

228,676.36 in year March 2009 to March 2013.

228,676.36

175,035.29

143,985.90

106,701.32

83,620.87

0.00

50,000.00

100,000.00

150,000.00

200,000.00

250,000.00


39

9) Net Cash from operating activities:


Net Cash From

Operating Activities 11778.81 11252.45 1125.47 2241.82 5153.94

The net cast from operating activities increased in last five years.

11778.8111252.45

1125.47

2241.82

5153.94

0

2000

4000

6000

8000

10000

12000

14000


40

10) Contingent Liabilities:


Contingent Liabilities 112,272.64 77,997.01 64,745.82 75,364.33 54,999.86

Contingent liabilities of company are highest in year 2013 are 112,272.64, in

year 2012 it is 77,997.01, 64,745.82in year 2011, 75,364.33 in year 2010 and

54,999.86 in year 2009. Thus the contingent liabilities of company are increased in

every year.

112,272.64

77,997.01

64,745.82

75,364.33

54,999.86

0.00

20,000.00

40,000.00

60,000.00

80,000.00

100,000.00

120,000.00


41

11) Bills for Collection:


Bills for collection 33,735.67 27,949.60 22,584.64 15,105.51 12,976.53

Bill collection are increased from year 2009 (12,976.53) to year 2013

(33,735.67).

33,735.67

27,949.60

22,584.64

15,105.5112,976.53

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00


42

Chapter 8

CONCLUSION

Total share capital of the company has been remains somewhat constant

during last five years. Equity share capital of the company has remain unchanged in

year 2010 to 2012 i.e. the it shows constant growth.. Reserves of the company has

increased in year 2010 to 2013

The deposits which is the long term source of finance is increased every year.

It is maximum in 2013 as compared to other financial years. Borrowings of the

company are 22,307 in year 2013, 13,350.09 in year 2012, 5,636.09 in year 2011,

3,927.05 in year 2010, 1,142.56 in year 2009. Thus the borrowings of the company

are increased last five years.

Cash & balances with 19,868.18, 13,539.97 in year 2012, 10,596.34 in year

2011, 9,369.72 in year 2010 and 6,413.52 in year 2009. Thus the cash and bank

balances of the company are increased in year 2013 as compared with last four

financial years.

Investments of company has increased in year 2012 as compared with the

balancesheets of last four years. It was 34,943.63 in year 2009 and 71,260.63 in year

2013.

43

Loans and advances of the company had increased from 83,620.87 to

228,676.36 in year March 2009 to March 2013. The net cast from operating

activities increased in last five years. Contingent liabilities of company are highest in

year 2013 are 112,272.64, in year 2012 it is 77,997.01, 64,745.82in year 2011,

75,364.33 in year 2010 and 54,999.86 in year 2009. Thus the contingent liabilities of

company are increased in every year. Bill collection are increased from year 2009

(12,976.53) to year 2013 (33,735.67).

Bank of Baroda is a long term hold and huge multibagger on a long term basis.

The promoters are holding more than 36% and this was always their holding for the

last few years. In fact The CEO bought abt. 10 lakhs shares when the share price was

43. More than 36% of the shares are held by FIIs and MFs. About 3% is held by

Promoters relatives and friends. The company has been consistently performing and

rewarding the investors by consistent dividends and bonus issues and appreciation in

share value. About an year ago shares were sold to FIIs at Rs.84 ( at 168 cumbrous ).

If you see the share holding pattern, there are lot of FIIs holding the share on long

term basis which shows their confidence in the management and growth potential of

the company. If some vested interests writes due to reasons known to them, it should

not be taken at face value rather the investor should base his opinion and investment

decision on the fundamentals of the company.

44

BIBLIOGRAPHY

1) Management Accounting

by R. K. Sharma, Shashi K. Gupta

2) Financial Management & Policy

by James C. Van Home

3) Financial Management

by S. K. Banarjee Financial Management

4) Financial Management

by R V. Kulkarni, P. M. Pandey

5) www.moneycontrol.com

Bank of Baroda

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